New Home Co.

2017 Performance Final Grade: 70.96/100
2016 Final Grade: 71.5/100
B-/B

24.76/40

Change YoY
Net debt-to-capital 33.5% 940bps
Pretax home building income
(in millions)
$27 5.8%
Total SG&A/Total revenue 7.9% --
Total SG&A
(in millions)
$59 12.2%
Return on invested capital 3.6% -270bps
Return on equity 6.7% -230bps
Total shareholder return 7% --
EPS $0.82 -19.6%

18.10/20

Change YoY
Community count 17 +2
Share of lots optioned to total controlled 65.6% 4.9%

15.24/20

Change YoY
Home building gross margins 15.2% 120bps
Sales per month to break even
(per community)
1.23 --
Revenue per employee
(in millions)
$2.7 11.2%
Change YoY
Closings 341 36.4%
Sales velocity
(per community per month)
2.0 43.7%
Unit backlog 153 93.7%


Total revenue (in millions):$751
HB revenue (in millions): $560
Debt per share: $15.2
Equity per basic share: $12.66
HB pretax margin: 4.8%
Backlog value (in millions): $162.3
Inventory (in millions):$416.1
Lot supply (in years): 8.1

New Home (NYSE: NWHM) reported healthy buyer demand in California during the year that, along with a shift to more affordably priced product, drove increases in monthly sales absorption rates. Net new-home orders were up 63% for the full year, and the firm ended 2017 with a 94% increase in backlog units. It plans to build on this momentum in 2018 as it increases community count and expands product offerings to deliver more homes at lower, more diverse price points.