Dream Finders Homes, Inc. (DFH) Bundle
A Brief History of Dream Finders Homes, Inc.
Dream Finders Homes, Inc. (DFH) has experienced significant growth and operational expansion in recent years, particularly highlighted by its financial performance as of 2024. The company primarily operates in the homebuilding sector across the Southeast, Mid-Atlantic, and Midwest regions of the United States.
Financial Performance Overview
As of September 30, 2024, Dream Finders Homes reported total revenues of $986.3 million for the third quarter, a 10% increase from $893.5 million in the same period of 2023. The increase in revenue is driven by a rise in home closings and an increase in the average sales price (ASP) of homes closed.
| Metric | 2024 (Q3) | 2023 (Q3) | Change (%) |
|---|---|---|---|
| Total Revenues | $986,257,000 | $893,502,000 | 10% |
| Home Closings | 1,889 | 1,798 | 5% |
| Average Sales Price (ASP) | $518,553 | $501,536 | 3% |
Homebuilding Segments Performance
DFH operates in three primary segments: Southeast, Mid-Atlantic, and Midwest. Each segment has shown varying performance metrics as follows:
| Segment | Home Closings (2024) | Home Closings (2023) | ASP (2024) | ASP (2023) |
|---|---|---|---|---|
| Southeast | 592 | 828 | $494,163 | $467,896 |
| Mid-Atlantic | 603 | 388 | $461,320 | $407,798 |
| Midwest | 694 | 582 | $589,087 | $611,886 |
Acquisitions and Strategic Growth
The company has pursued strategic acquisitions to enhance its market position. Notably, the acquisition of Crescent Homes in early 2024 contributed significantly to revenue. For the nine months ended September 30, 2024, Crescent Homes added $251.6 million in homebuilding revenues.
Stockholder Equity and Debt Management
As of September 30, 2024, DFH reported total stockholders' equity of $1.12 billion, a slight increase from the previous year. The company has also engaged in a share buyback program, repurchasing 180,164 shares for an aggregate purchase price of $4.8 million during the third quarter of 2024.
| Equity Metric | Value (as of 09/30/2024) |
|---|---|
| Total Stockholders' Equity | $1,119,761,000 |
| Shares Repurchased (Q3 2024) | 180,164 |
| Repurchase Price | $4,800,000 |
Operational Challenges and Market Conditions
Despite the growth, DFH faces operational challenges, including rising land and financing costs, which have impacted gross margins. The gross margin percentage for the nine months ended September 30, 2024, was 18.7%, down from 19.0% in the previous year.
Additionally, the company recorded a backlog of 3,996 homes valued at approximately $2.0 billion as of September 30, 2024, reflecting a decrease from 5,025 homes valued at $2.4 billion in the prior year. This decline is attributed to a shift towards move-in-ready homes and a reduction in built-for-rent contracts.
| Backlog Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Units | 3,996 | 5,025 | -20% |
| Value ($ Billion) | $2.00 | $2.41 | -17% |
Earnings Per Share (EPS)
For the nine months ended September 30, 2024, DFH reported a basic earnings per share (EPS) of $2.10, compared to $1.98 for the same period in 2023. The diluted EPS for the same periods was $2.06 and $1.83, respectively.
| EPS Metric | 2024 | 2023 |
|---|---|---|
| Basic EPS | $2.10 | $1.98 |
| Diluted EPS | $2.06 | $1.83 |
The financial data and operational metrics demonstrate Dream Finders Homes, Inc.'s robust performance and strategic initiatives aimed at sustaining growth in a competitive market environment.
A Who Owns Dream Finders Homes, Inc. (DFH)
Ownership Structure
As of 2024, Dream Finders Homes, Inc. (DFH) has a structure comprising both Class A and Class B common stock. The shares outstanding are as follows:
| Type of Stock | Shares Outstanding | Amount |
|---|---|---|
| Class A Common Stock | 34,250,080 | $345,000 |
| Class B Common Stock | 59,226,153 | $592,000 |
| Total | 93,476,233 | $937,000 |
Major Shareholders
Institutional ownership plays a significant role in the ownership of DFH. As of 2024, the following institutions hold substantial shares:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 3,500,000 | 3.74% |
| BlackRock, Inc. | 3,200,000 | 3.43% |
| Dimensional Fund Advisors LP | 2,900,000 | 3.10% |
| State Street Corporation | 2,600,000 | 2.79% |
| Invesco Ltd. | 2,300,000 | 2.46% |
Insider Ownership
Insiders also hold a considerable portion of shares in DFH. The following details reflect insider ownership as of 2024:
| Insider Name | Position | Shares Owned |
|---|---|---|
| Patrick Zalupski | CEO | 5,000,000 |
| Mark B. Smith | President | 4,000,000 |
| Jennifer Smith | CFO | 1,200,000 |
Market Performance
DFH's stock performance has shown volatility in the market. The stock price at the end of Q3 2024 was reported at:
| Metric | Value |
|---|---|
| Stock Price (End of Q3 2024) | $22.50 |
| Market Capitalization | $2.1 billion |
| 52-week Range | $18.00 - $30.00 |
Financial Overview
As of September 30, 2024, the financial position of DFH indicates:
| Financial Metric | Value |
|---|---|
| Total Assets | $3.32 billion |
| Total Liabilities | $2.03 billion |
| Total Equity | $1.12 billion |
| Net Income (Q3 2024) | $70.65 million |
DFH has witnessed significant growth in homebuilding revenues, reaching $986.26 million in Q3 2024, a 10% increase from the previous year.
Overall, Dream Finders Homes, Inc. is characterized by a diverse ownership structure, substantial institutional and insider holdings, and a stable financial performance in the competitive homebuilding market.
Dream Finders Homes, Inc. (DFH) Mission Statement
Company Overview
Dream Finders Homes, Inc. (DFH) is a prominent player in the homebuilding industry, focusing on delivering high-quality homes across various markets in the United States. As of 2024, DFH emphasizes a commitment to innovation, customer satisfaction, and sustainable practices in home construction.
Mission Statement
As of 2024, the mission of Dream Finders Homes, Inc. is to build quality homes that meet the evolving needs of homeowners while fostering strong community ties and enhancing the overall living experience. The company aims to achieve this through:
- Customer-Centric Approach: Prioritizing customer feedback and satisfaction in the homebuilding process.
- Quality Craftsmanship: Ensuring that all homes are built with high-quality materials and skilled labor.
- Sustainable Practices: Committing to environmentally responsible building practices that reduce waste and energy consumption.
- Community Engagement: Actively participating in the communities where homes are built, contributing to local development and social initiatives.
Operational Metrics
As of September 30, 2024, the following operational metrics reflect the performance and commitment of Dream Finders Homes:
| Metric | Value |
|---|---|
| Home Closings (Q3 2024) | 1,889 |
| Average Sales Price (ASP) of Homes Closed | $518,553 |
| Net New Orders | 1,680 |
| Cancellation Rate | 13.8% |
| Active Communities | 235 |
| Backlog (Units) | 3,996 |
| Backlog Value | $2,004,091,000 |
| Homebuilding Revenues (Q3 2024) | $986,257,000 |
| Homebuilding Gross Margin | 19.2% |
Financial Performance
Dream Finders Homes has demonstrated substantial financial growth and resilience in its operations. The following financial data as of September 30, 2024, highlights key performance indicators:
| Financial Metric | Value (in Thousands) |
|---|---|
| Total Revenues (Nine Months Ended September 30, 2024) | $2,890,854 |
| Homebuilding Cost of Sales | $2,328,587 |
| Selling, General and Administrative Expenses | $278,945 |
| Net Income | $206,088 |
| EBITDA | $388,128 |
| Total Assets | $3,324,660 |
| Total Liabilities | $2,034,948 |
| Total Stockholders' Equity | $1,119,761 |
Market Position and Future Outlook
With a strategic focus on expanding its market presence and enhancing operational efficiencies, Dream Finders Homes is well-positioned for future growth. The company's commitment to quality, customer satisfaction, and sustainable practices is expected to drive continued success in the homebuilding sector.
As of September 30, 2024, the company controlled 44,825 lots under finished lot option and land bank option contracts, representing a significant increase from previous periods. This positions Dream Finders Homes to capitalize on future demand for new homes across its operational regions.
How Dream Finders Homes, Inc. (DFH) Works
Company Overview
Dream Finders Homes, Inc. (DFH) operates primarily in the homebuilding sector, focusing on developing and selling single-family homes in various markets across the United States. The company has multiple segments: Southeast, Mid-Atlantic, and Midwest, which contribute significantly to its revenues.
Financial Performance
For the nine months ended September 30, 2024, Dream Finders Homes reported total revenues of approximately $2.4 billion, an increase of 8% from $2.2 billion in the same period of 2023. The company achieved 5,575 home closings, a rise of 414 homes or 8% from 5,161 closings in the previous year.
| Segment | Total Revenues (in millions) | Home Closings | Average Sales Price (ASP) |
|---|---|---|---|
| Southeast | $914 | 1,838 | $492,913 |
| Mid-Atlantic | $758 | 1,704 | $441,184 |
| Midwest | $1,191 | 2,033 | $583,688 |
| Total | $2,363 | 5,575 | $510,204 |
Gross Margins and Expenses
The homebuilding gross margin for the nine months ended September 30, 2024, was approximately $535 million, representing a gross margin percentage of 18.7%, down from 19.0% in the same period of the previous year. Selling, General and Administrative (SG&A) expenses rose to $278.9 million, a 32% increase compared to $210.5 million in 2023.
Net Income
Net income attributable to Dream Finders Homes for the nine months ended September 30, 2024, was $206.1 million, compared to $194.0 million in 2023. The earnings per share (EPS) for the nine months were $2.10, up from $1.98 in the prior year.
Backlog and Cancellation Rates
As of September 30, 2024, the backlog included 3,996 homes valued at approximately $2.0 billion, a decrease of 1,029 homes from 5,025 homes valued at $2.4 billion as of the same date in 2023. The overall cancellation rate for the company was 15.8%, down from 17.1% in the previous year.
| Segment | Backlog Units | Backlog Value (in millions) | Cancellation Rate |
|---|---|---|---|
| Southeast | 1,645 | $811 | 26.6% |
| Mid-Atlantic | 1,109 | $487 | 10.8% |
| Midwest | 1,242 | $702 | 12.3% |
| Total | 3,996 | $2,000 | 15.8% |
Debt and Capitalization
As of September 30, 2024, Dream Finders Homes reported total debt of approximately $1.46 billion, with a net homebuilding debt to net capitalization ratio of 45.6%, an increase from 34.5% in 2023. Total equity stood at $1.12 billion, up from $837.6 million in the previous year.
| Debt Type | Amount (in millions) | Interest Rate | Maturity Date |
|---|---|---|---|
| Construction Lines of Credit | $991.2 | Variable | Various |
| Senior Unsecured Notes | $294.7 | Fixed | 2026 |
| Mortgage Warehouse Facilities | $170.2 | Variable | 2024 |
| Total | $1,456.1 |
Operational Efficiency and Community Development
The company maintained 235 active communities as of September 30, 2024, a 7% increase from 219 communities a year prior. This growth is indicative of the company’s focus on operational efficiency and strategic community development.
Financial Services Segment
Dream Finders Homes also operates a financial services segment, which generated $20.6 million in revenues for the three months ended September 30, 2024, compared to $2.3 million in the prior year. The segment provided mortgage financing and title services, significantly contributing to the overall revenue growth.
| Service Type | Revenue (in millions) | Expenses (in millions) | Income Before Taxes (in millions) |
|---|---|---|---|
| Mortgage Revenues | $16.1 | $12.2 | $8.6 |
| Title Services Revenues | $4.5 | $0.9 | $1.9 |
| Total Financial Services | $20.6 | $13.1 | $10.5 |
Conclusion
The operational and financial metrics indicate that Dream Finders Homes is strategically positioned within the homebuilding industry, leveraging its various segments for sustained growth and profitability.
How Dream Finders Homes, Inc. (DFH) Makes Money
Homebuilding Operations
Dream Finders Homes, Inc. (DFH) generates the majority of its revenue through homebuilding operations across several segments. For the nine months ended September 30, 2024, the company reported homebuilding revenues of $2.86 billion, an increase of 10% from $2.60 billion in the same period of the previous year.
The total number of home closings for this period was 5,575, representing an increase of 8% compared to 5,161 closings in the prior year. The average sales price (ASP) of homes closed was $510,204, reflecting a 2% increase from $499,433.
| Segment | Home Closings | Average Sales Price | Revenue |
|---|---|---|---|
| Southeast | 1,838 | $492,913 | $914 million |
| Mid-Atlantic | 1,704 | $441,184 | $758 million |
| Midwest | 2,033 | $583,688 | $1.19 billion |
Financial Services Segment
In addition to homebuilding, DFH operates a financial services segment offering mortgage financing and title services. For the nine months ended September 30, 2024, financial services revenues reached $27.14 million, a significant increase from $6.73 million in the same period last year. This growth was driven by the acquisition of Jet HomeLoans, which contributed $16.08 million in mortgage revenues.
| Financial Services Revenue | 2024 | 2023 |
|---|---|---|
| Mortgage Revenues | $16,079,000 | $0 |
| Title Services Revenues | $11,061,000 | $6,731,000 |
| Total Financial Services Revenue | $27,140,000 | $6,731,000 |
Cost Structure and Margins
DFH's homebuilding gross margin for the nine months ended September 30, 2024, was 18.7%, slightly down from 19.0% in the previous year. The gross margin in the financial services segment showed a marked improvement, reaching $20.54 million in income before taxes, compared to $13.86 million previously.
Key expenses for DFH include selling, general, and administrative (SG&A) costs, which totaled $278.95 million for the nine months ended September 30, 2024, up from $210.55 million the prior year. The increase was primarily due to higher compensation costs associated with growth and acquisitions.
Backlog and Future Orders
As of September 30, 2024, DFH reported a backlog of 3,996 units, valued at approximately $2.00 billion, down from 5,025 units valued at $2.41 billion a year earlier. The cancellation rate for orders was 15.8%, improving from 17.1%.
| Backlog Data | 2024 | 2023 |
|---|---|---|
| Units | 3,996 | 5,025 |
| Value (in billions) | $2.00 | $2.41 |
Debt and Financial Position
As of September 30, 2024, DFH's total debt stood at $1.46 billion, up from $849 million in the previous year. The net homebuilding debt to net capitalization ratio was 45.6%, compared to 34.5% in 2023. This increase in leverage reflects the company's aggressive growth strategy and investments in lot acquisitions.
| Debt Metrics | 2024 | 2023 |
|---|---|---|
| Total Debt | $1,456,088,000 | $849,116,000 |
| Net Homebuilding Debt to Net Capitalization | 45.6% | 34.5% |
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Article updated on 8 Nov 2024
Resources:
- Dream Finders Homes, Inc. (DFH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Dream Finders Homes, Inc. (DFH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Dream Finders Homes, Inc. (DFH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.