Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 28, 2021 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001574596 | |
Entity Registrant Name | New Home Co Inc. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36283 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-0560089 | |
Entity Address, Address Line One | 6730 N Scottsdale Rd., Suite 290 | |
Entity Address, City or Town | Scottsdale | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85253 | |
City Area Code | 602 | |
Local Phone Number | 767-1426 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | NWHM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,043,699 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 114,815 | $ 107,279 |
Restricted cash | 230 | 180 |
Contracts and accounts receivable | 5,130 | 4,924 |
Due from affiliates | 53 | 102 |
Real estate inventories | 351,589 | 314,957 |
Investment in unconsolidated joint ventures | 903 | 2,107 |
Deferred tax asset, net | 15,057 | 15,447 |
Other assets | 51,955 | 50,703 |
Total assets | 539,732 | 495,699 |
Liabilities and equity | ||
Accounts payable | 16,970 | 17,182 |
Accrued expenses and other liabilities | 44,904 | 36,210 |
Senior notes, net | 280,291 | 244,865 |
Total liabilities | 342,165 | 298,257 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares outstanding | 0 | 0 |
Common stock, $0.01 par value, 500,000,000 shares authorized, 18,080,002 and 18,122,345, shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 181 | 181 |
Additional paid-in capital | 191,068 | 191,496 |
Retained earnings | 6,318 | 5,765 |
Total stockholders' equity | 197,567 | 197,442 |
Total liabilities and stockholders' equity | $ 539,732 | $ 495,699 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 18,080,002 | 18,122,345 |
Common stock, shares outstanding (in shares) | 18,080,002 | 18,122,345 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Revenues | $ 99,156 | $ 132,033 |
Cost of Sales: | ||
Cost of Revenue, Total | 83,045 | 120,366 |
Gross Margin: | ||
Gross margin | 16,111 | 11,667 |
Selling and marketing expenses | (6,654) | (7,466) |
General and administrative expenses | (8,271) | (6,023) |
Equity in net income (loss) of unconsolidated joint ventures | 174 | (1,937) |
Interest expense | (354) | (718) |
Project abandonment costs | (68) | (14,036) |
Loss on early extinguishment of debt | 0 | (123) |
Other income (expense), net | 66 | 223 |
Pretax income (loss) | 1,004 | (18,413) |
(Provision) benefit for income taxes | (451) | 9,937 |
Net income (loss) | $ 553 | $ (8,476) |
Earnings (loss) per share: | ||
Basic (in dollars per share) | $ 0.03 | $ (0.42) |
Diluted (in dollars per share) | $ 0.03 | $ (0.42) |
Weighted average shares outstanding: | ||
Basic (in shares) | 18,109,015 | 19,951,825 |
Diluted (in shares) | 18,420,631 | 19,951,825 |
Home Building [Member] | ||
Revenues: | ||
Revenues | $ 93,855 | $ 95,659 |
Cost of Sales: | ||
Cost of Sales | 77,848 | 84,722 |
Gross Margin: | ||
Gross margin | 16,007 | 10,937 |
Pretax income (loss) | 900 | (19,143) |
Land [Member] | ||
Revenues: | ||
Revenues | 0 | 147 |
Cost of Sales: | ||
Cost of Sales | 0 | 147 |
Gross Margin: | ||
Gross margin | 0 | 0 |
Construction [Member] | ||
Revenues: | ||
Revenues | 5,301 | 36,227 |
Cost of Sales: | ||
Cost of Sales | 5,197 | 35,497 |
Gross Margin: | ||
Gross margin | 104 | 730 |
Pretax income (loss) | $ 104 | $ 730 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Dec. 31, 2019 | 20,096,969 | |||||
Balance at Dec. 31, 2019 | $ 201 | $ 193,862 | $ 38,584 | $ 232,647 | $ 112 | $ 232,759 |
Net income (loss) | 0 | 0 | (8,476) | (8,476) | 0 | (8,476) |
Stock-based compensation expense | $ 0 | 589 | 0 | 589 | 0 | 589 |
Shares net settled with the Company to satisfy employee personal income tax liabilities resulting from share based compensation plans (in shares) | (58,098) | |||||
Shares net settled with the Company to satisfy employee personal income tax liabilities resulting from share based compensation plans | $ 0 | (303) | 0 | (303) | 0 | (303) |
Shares issued through stock plans (in shares) | 152,177 | |||||
Shares issued through stock plans | $ 1 | (1) | 0 | 0 | 0 | $ 0 |
Repurchase of common stock (in shares) | (1,233,883) | (1,233,883) | ||||
Repurchase of common stock | $ (12) | (2,221) | 0 | (2,233) | 0 | $ (2,233) |
Balance (in shares) at Mar. 31, 2020 | 18,957,165 | |||||
Balance at Mar. 31, 2020 | $ 190 | 191,926 | 30,108 | 222,224 | 112 | $ 222,336 |
Balance (in shares) at Dec. 31, 2020 | 18,122,345 | 18,122,345 | ||||
Balance at Dec. 31, 2020 | $ 181 | 191,496 | 5,765 | 197,442 | 0 | $ 197,442 |
Net income (loss) | 0 | 0 | 553 | 553 | 0 | 553 |
Stock-based compensation expense | $ 0 | 645 | 0 | 645 | 0 | 645 |
Shares net settled with the Company to satisfy employee personal income tax liabilities resulting from share based compensation plans (in shares) | (61,552) | |||||
Shares net settled with the Company to satisfy employee personal income tax liabilities resulting from share based compensation plans | $ 0 | (317) | 0 | (317) | 0 | (317) |
Shares issued through stock plans (in shares) | 161,032 | |||||
Shares issued through stock plans | $ 1 | (1) | 0 | 0 | 0 | $ 0 |
Repurchase of common stock (in shares) | (141,823) | (141,823) | ||||
Repurchase of common stock | $ (1) | (755) | 0 | (756) | 0 | $ (756) |
Balance (in shares) at Mar. 31, 2021 | 18,080,002 | 18,080,002 | ||||
Balance at Mar. 31, 2021 | $ 181 | $ 191,068 | $ 6,318 | $ 197,567 | $ 0 | $ 197,567 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities: | ||
Net income (loss) | $ 553 | $ (8,476) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Deferred taxes | 390 | 914 |
Amortization of stock-based compensation | 645 | 589 |
Project abandonment costs | 68 | 14,036 |
Equity in net (income) loss of unconsolidated joint ventures | (174) | 1,937 |
Depreciation and amortization | 1,256 | 1,845 |
Loss on early extinguishment of debt | 0 | 123 |
Net changes in operating assets and liabilities: | ||
Contracts and accounts receivable | (102) | 345 |
Due from affiliates | 49 | 130 |
Real estate inventories | 5,554 | 27,130 |
Other assets | 337 | (11,804) |
Accounts payable | (2,876) | (4,006) |
Accrued expenses and other liabilities | (3,194) | (5,462) |
Net cash provided by operating activities | 2,506 | 17,301 |
Investing activities: | ||
Purchases of property and equipment | (43) | (125) |
Contributions to unconsolidated joint ventures | 0 | (2,057) |
Distributions of capital from unconsolidated joint ventures | 1,378 | 1,100 |
Cash paid for acquisition, net of cash acquired | (6,477) | 0 |
Net cash used in investing activities | (5,142) | (1,082) |
Financing activities: | ||
Proceeds from senior notes | 36,138 | 0 |
Repurchases of senior notes | 0 | (4,827) |
Repayment of notes payable | (23,848) | 0 |
Payment of debt issuance costs | (995) | 0 |
Repurchases of common stock | (756) | (2,233) |
Tax withholding paid on behalf of employees for stock awards | (317) | (303) |
Net cash provided by (used in) financing activities | 10,222 | (7,363) |
Net increase in cash, cash equivalents and restricted cash | 7,586 | 8,856 |
Cash, cash equivalents and restricted cash – beginning of period | 107,459 | 79,431 |
Cash, cash equivalents and restricted cash – end of period | $ 115,045 | $ 88,287 |
Note 1 - Organization and Summa
Note 1 - Organization and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1. Organization The New Home Company Inc. (the "Company"), a Delaware corporation, and its subsidiaries are primarily engaged in all aspects of residential real estate development, including acquiring land and designing, constructing and selling homes in California, Arizona and Colorado. Based on our public float of $46.0 million at June 30, 2020, Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts have been eliminated upon consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10 X 10 December 31, 2020 not 19" Unless the context otherwise requires, the terms "we", "us", "our" and "the Company" refer to the Company and its wholly owned subsidiaries, on a consolidated basis. Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying condensed consolidated financial statements and notes. Accordingly, actual results could differ materially from these estimates. Reclassifications No Segment Reporting Accounting Standards Codification ("ASC") 280, Segment Reporting ("ASC 280" 280, Cash and Cash Equivalents We define cash and cash equivalents as cash on hand, demand deposits with financial institutions, and short term liquid investments with a maturity date of less than three Restricted Cash Restricted cash of $0.2 million and $0.2 million as of March 31, 2021 December 31, 2020 The table below shows the line items and amounts of cash and cash equivalents and restricted cash as reported within the Company's condensed consolidated balance sheets for each period shown that sum to the total of the same such amounts at the end of the periods shown in the accompanying condensed consolidated statements of cash flows. Three Months Ended March 31, 2021 2020 (Dollars in thousands) Cash and cash equivalents $ 114,815 $ 87,863 Restricted cash 230 424 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 115,045 $ 88,287 Real Estate Inventories and Cost of Sales We capitalize pre-acquisition, land, development and other allocated costs, including interest, property taxes and indirect construction costs. Pre-acquisition costs, including nonrefundable land deposits, are expensed to project abandonment costs if we determine continuation of the prospective project is not Land, development and other common costs are typically allocated to real estate inventories using a methodology that approximates the relative-sales-value method. Home construction costs per production phase are recorded using the specific identification method. Cost of sales for homes closed includes the estimated total construction costs of each home at completion and an allocation of all applicable land acquisition, land development and related common costs (both incurred and estimated to be incurred) based upon the relative-sales-value of the home within each project. Changes in estimated development and common costs are allocated prospectively to remaining homes in the project. In accordance with ASC 360, Property, Plant and Equipment 360" not not If there are indicators of impairment, we perform a detailed budget and cash flow review of the applicable real estate inventories to determine whether the estimated future undiscounted cash flows of the project are more or less than the asset’s carrying value. If the estimated future undiscounted cash flows exceed the asset’s carrying value, no 820, Fair Value Measurements and Disclosures 820" When estimating undiscounted future cash flows of a project, we make various assumptions, including: (i) expected sales prices and sales incentives to be offered, including the number of homes available, pricing and incentives being offered by us or other builders in other projects, and future sales price adjustments based on market and economic trends; (ii) expected sales pace and cancellation rates based on local housing market conditions, competition and historical trends; (iii) costs expended to date and expected to be incurred including, but not may Many assumptions are interdependent and a change in one may may If a real estate asset is deemed impaired, the impairment is calculated by determining the amount the asset's carrying value exceeds its fair value in accordance with ASC 820. not three March 31, 2021 2020, three March 31, 2021 2020 Capitalization of Interest We follow the practice of capitalizing interest to real estate inventories during the period of development and to investments in unconsolidated joint ventures, when applicable, in accordance with ASC 835, Interest 835" third third 835, Business Combinations We account for business combinations in accordance with ASC Topic 805, Business Combinations 805" February 26, 2021, 805. 4, Following the consummation of the Epic Acquisition, the Company repaid approximately $23.8 million of the Epic Companies’ third Goodwill In accordance with ASC Topic 350, Intangibles-Goodwill and Other 350” not September 30 not not In conjunction with the Company's Epic Acquisition during the 2021 first March 31, 2021. March 31, 2021, not Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers 606" 606, five 606: Home Sales and Profit Recognition In accordance with ASC 606, not Land Sales and Profit Recognition In accordance with ASC 606, may may not Fee Building The Company enters into fee building agreements to provide services whereby it builds homes on behalf of third third third third 606, The Company also provides construction management and coordination services and sales and marketing services as part of agreements with third 606. may 606. The Company’s fee bui lding revenues have historically been concentrated with a small number of customers. For the three March 31, 2021 2020 , one customer co prised 34 % and third March 31, 2021 December 31, 2020 comprised 8 25%, Variable Interest Entities The Company accounts for variable interest entities in accordance with ASC 810, Consolidation 810" 810, not not not not Once we consider the sufficiency of equity and voting rights of each legal entity, we then evaluate the characteristics of the equity holders' interests, as a group, to see if they qualify as controlling financial interests. Our real estate joint ventures consist of limited partnerships and limited liability companies. For entities structured as limited partnerships or limited liability companies, our evaluation of whether the equity holders (equity partners other than us in each our joint ventures) lack the characteristics of a controlling financial interest includes the evaluation of whether the limited partners or non-managing members (the non-controlling equity holders) lack both substantive participating rights and substantive kick-out rights, defined as follows: • Participating rights - provide the non-controlling equity holders the ability to direct significant financial and operational decision made in the ordinary course of business that most significantly influence the entity's economic performance. • Kick-out rights - allow the non-controlling equity holders to remove the general partner or managing member without cause. If we conclude that any of the three If an entity is deemed to be a VIE pursuant to ASC 810, Under ASC 810, may not may not may March 31, 2021 posi ts of $10.1 million pertaining to land option contracts and purchase contracts. As of March 31, 2021 December 31, 2020 not 810, Non-controlling Interest During 2013, third 810, not third 2020, March 31, 2021 December 31, 2020 third $0 Investments in Unconsolidated Joint Ventures We use the equity method to account for investments in homebuilding and land development joint ventures when any of the following situations exist: 1 not 2 not 3 As of March 31, 2021 none Under the equity method, we recognize our proportionate share of earnings and losses generated by the joint venture upon the delivery of lots or homes to third third 230, Statement of Cash Flows 230" We review real estate inventory held by our unconsolidated joint ventures for impairment on a quarterly basis, consistent with how we review our real estate inventories as described in more detail above in the section entitled "Real Estate Inventories and Cost of Sales." We also review our investments in and advances to unconsolidated joint ventures for evidence of other-than-temporary declines in value in accordance with ASC 820. not three March 31, 2021 2020 arges of illion, Selling and Marketing Expense Costs incurred for tangible assets directly used in the sales process such as our sales offices, design studios and model landscaping and furnishings are capitalized to other assets in the accompanying condensed consolidated balance sheets under ASC 340, Other Assets and Deferred Costs 340" 30 Warranty and Litigation Accruals We offer warranties on our homes that generally cover various defects in workmanship or materials, or structural construction defects for one two third While our subcontractors who perform our homebuilding work generally provide us with an indemnity for claims relating to their workmanship and materials, we also purchase general liability insurance that covers development and construction activity at each of our communities. Our subcontractors are usually covered by these programs through an owner-controlled insurance program, or "OCIP." Consultants such as engineers and architects are generally not not Contracts and Accounts Receivable Contracts and accounts receivable primarily represent the fees earned, but not not not March 31, 2021 December 31, 2020 Property, Equipment and Capitalized Selling and Marketing Costs Property, equipment and capitalized selling and marketing costs are recorded at cost and included in other assets in the accompanying condensed consolidated balance sheets. Property and equipment are depreciated to general and administrative expenses using the straight-line method over their estimated useful lives ranging from three five Income Taxes Income taxes are accounted for in accordance with ASC 740, Income Taxes 740" Each quarter we assess our deferred tax asset to determine whether all or any portion of the asset is more likely than not 50% 740. not 740, March 31, 2021 December 31, 2020, not recorde 14 ASC 740 not, not March 31, 2021 no The Company classifies any interest and penalties related to income taxes assessed as part of the provision/benefit for income taxes. As of March 31, 2021 not Stock-Based Compensation We account for share-based awards in accordance with ASC 718, Compensation – Stock Compensation 718" 718 718 Share Repurchase and Retirement When shares are retired, the Company’s policy is to allocate the excess of the repurchase price over the par value of shares acquired to both retained earnings and additional paid-in capital. The portion allocated to additional paid-in capital is determined by applying a percentage, which is determined by dividing the number of shares to be retired by the number of shares issued, to the balance of additional paid-in capital as of the retirement date. The residual, if any, is allocated to retained earnings as of the retirement date. During the three March 31, 2021, d retired 141,823 shares o urchase price of $ 0.8 million. During the three March 31, 2020 , the Company repurchased and retired 1,233,883 shares of its common stock at an aggregate purchase price of $2.2 million. The purchases were made under previously announced stock repurchase programs and the Company had remaining purchase authorization of $8.7 million as of March 31, 2021 January 1, 2021 February 16, 2021, March 11, 2021 March 31, 2021 March 20, 2020 March 31, 2020 10b5 1 Tax Benefit Preservation Plan On May 8, 2020, 2020 five not May 7, 2021; March 2021, March 29, 2021. March 29, 2021 no Dividends No dividends were paid on our common stock during the three March 31, 2021 2020 not not Recently Issued Accounting Standards In June 2016, 2016 13, Financial Instruments - Credit Losses (Topic 326 2016 13" 2019 04, Codification Improvements to Topic 326, 815, 825, April 2019, 2019 05, Financial Instruments - Credit Losses (Topic 326 May 2019, 2019 11, Codification Improvements to Topic 326, November 2019, 2020 02 , Financial Instruments - Credit Losses (Topic 326 842 February 2020 January 1, 2020, November 2019, 2019 10, Financial Instruments - Credit Losses (Topic 326 815 842 December 15, 2022, not 2016 13 January 1, 2021, not In December 2019, 2019 12, Income Taxes (Topic 740 Simplifying the Accounting for Income Taxes ("ASU 2019 12" December 15, 2020. 2019 12 January 1, 2021 no In January 2020, 2020 01, Investments - Equity Securities (Topic 321 323 815 ("ASU 2020 01" 2020 01 321 323 815. December 31, 2020, 2020 01 January 1, 2021 no In October 2020, 2020 10, Codification Improvements 2020 10" 2020 10 December 15, 2020, 2020 10 effective January 1, 2021 and experienced no as a result of adoption |
Note 2 - Computation of Earning
Note 2 - Computation of Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 2. The following table sets forth the components used in the computation of basic and diluted loss per share for the three March 31, 2021 2020 Three Months Ended March 31, 2021 2020 (Dollars in thousands, except per share amounts) Numerator: Net income (loss) $ 553 $ (8,476 ) Denominator: Basic weighted-average shares outstanding 18,109,015 19,951,825 Effect of dilutive shares: Stock options and unvested restricted stock units 311,616 — Diluted weighted-average shares outstanding 18,420,631 19,951,825 Basic earnings (loss) per share $ 0.03 $ (0.42 ) Diluted earnings (loss) per share $ 0.03 $ (0.42 ) Antidilutive stock options and unvested restricted stock units not included in diluted earnings (loss) per share 1,397,559 1,785,826 |
Note 3 - Contracts and Accounts
Note 3 - Contracts and Accounts Receivable | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 3. Contracts and accounts receivable consist of the following: March 31, December 31, 2021 2020 (Dollars in thousands) Contracts receivable: Costs incurred on fee building projects $ 5,197 $ 79,583 Estimated earnings 104 1,420 5,301 81,003 Less: amounts collected during the period (4,152 ) (77,861 ) Contracts receivable $ 1,149 $ 3,142 Contracts receivable: Billed $ — $ — Unbilled 1,149 3,142 1,149 3,142 Accounts receivable: Escrow receivables 3,581 1,782 Other receivables 400 — Contracts and accounts receivable $ 5,130 $ 4,924 Billed contracts receivable represent amounts billed to customers that have yet to be collected. Unbilled contracts receivable represents the contract revenue recognized but not March 31, 2021 30 March 31, 2021 December 31, 2020 d es $0.8 |
Note 4 - Real Estate Inventorie
Note 4 - Real Estate Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Real Estate Disclosure [Text Block] | 4. Real estate inventories are summarized as follows: March 31, December 31, 2021 2020 (Dollars in thousands) Deposits and pre-acquisition costs $ 14,542 $ 12,202 Land held and land under development 120,930 127,807 Homes completed or under construction 174,086 133,567 Model homes 42,031 41,381 $ 351,589 $ 314,957 All of our deposits and pre-acquisition costs are nonrefundable, except for refundable deposits of $0.1 million and $0.1 million as of March 31, 2021 December 31, 2020 Land held and land under development includes land costs and costs incurred during site development such as development, indirects, and permits. Homes completed or under construction and model homes include all costs associated with home construction, including allocated land, development, indirects, permits, materials and labor (except for capitalized selling and marketing costs, which are classified in other assets). During the three March 31, 2021, 805. 805, may 15. In addition, we incurred approximately $1.0 million of transaction costs related to the Epic Acquisition, which are included in general and administrative expenses in the accompanying condensed consolidated statements of operations. Following the consummation of the Epic Acquisition, the Company repaid approximately $23.8 million of the Epic Companies’ third March 31, 2021, may one 805 15. January 1, 2020 not not March 31, 2021 2020. In accordance with ASC 360, not three March 31, 2021 2020, During the 2020 first , the Company decided to abandon the future acquisition, development, construction and sale of future phases of the project that were under option. In accordance with ASC 970 360 40 1, not three March 31, 2020, the Company recorded an abandonment charge of $14.0 million representing the capitalized costs that had accumulated related to the portion of the project that was abandoned. This charge is included within project abandonment costs in the accompanying condensed consolidated statements of operations. |
Note 5 - Capitalized Interest
Note 5 - Capitalized Interest | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Capitalized Interest [Text Block] | 5. Interest is capitalized to inventory and investment in unconsolidated joint ventures during development and other qualifying activities. Interest capitalized as a cost of inventory is included in cost of sales as related homes and land parcels are closed. Interest capitalized to investment in unconsolidated joint ventures is amortized to equity in net income (loss) of unconsolidated joint ventures as related joint venture homes or lots close, or in instances where lots are sold from the unconsolidated joint venture to the Company, the interest is added to the land basis and included in cost of sales when the related lots or homes are sold to third not three March 31, 2021 2020 Three Months Ended March 31, 2021 2020 (Dollars in thousands) Interest incurred $ 5,331 $ 6,380 Interest capitalized to inventory (4,977 ) (5,662 ) Interest expensed $ 354 $ 718 Capitalized interest in beginning inventory $ 22,053 $ 26,397 Interest capitalized as a cost of inventory 4,977 5,662 Previously capitalized interest included in cost of home and land sales (4,027 ) (6,146 ) Previously capitalized interest included in project abandonment costs — (761 ) Capitalized interest in ending inventory $ 23,003 $ 25,152 Capitalized interest in beginning investment in unconsolidated joint ventures $ — $ 541 Previously capitalized interest included in equity in net income (loss) of unconsolidated joint ventures — (448 ) Capitalized interest in ending investment in unconsolidated joint ventures — 93 Total capitalized interest in ending inventory and investments in unconsolidated joint ventures $ 23,003 $ 25,245 Capitalized interest as a percentage of inventory 6.5 % 6.3 % Interest included in cost of home sales as a percentage of home sales revenue 4.2 % 6.5 % Capitalized interest as a percentage of investment in unconsolidated joint ventures — % 0.3 % For the three March 31, 2020, the Company expensed $0.8 million in interest previously capitalized due to the abandonment of the future phases of one 4. For the three March 31, 2020, the Company expensed $0.4 million in interest previously capitalized to investments in unconsolidated joint ventures as the result of an other-than-temporary impairment to its investment in one 6. |
Note 6 - Investments in Unconso
Note 6 - Investments in Unconsolidated Joint Ventures | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 6. As of March 31, 2021 December 31, 2020 nine March 31, December 31, 2021 2020 (Dollars in thousands) Cash and cash equivalents $ 15,539 $ 16,709 Restricted cash 250 611 Real estate inventories — 3,172 Other assets 1,145 1,834 Total assets $ 16,934 $ 22,326 Accounts payable and accrued liabilities $ 12,898 $ 13,487 Notes payable — — Total liabilities 12,898 13,487 The New Home Company's equity (1) 903 2,107 Other partners' equity 3,133 6,732 Total equity 4,036 8,839 Total liabilities and equity $ 16,934 $ 22,326 ( 1 Balance represents the Company's interest, as reflected in the financial records of the respective joint ventures. The condensed combined statements of operations for our unconsolidated joint ventures accounted for under the equity method were as follows: Three Months Ended March 31, 2021 2020 (Dollars in thousands) Revenues $ 5,353 $ 31,647 Cost of sales and expenses 5,152 30,285 Net income of unconsolidated joint ventures $ 201 $ 1,362 Equity in net income (loss) of unconsolidated joint ventures reflected in the accompanying condensed consolidated statements of operations $ 174 $ (1,937 ) The Company reviews its investments in unconsolidated joint ventures for other-than-temporary declines in value . three March 31, 2021 2020, 2020 2020 first 2020 third $5.1 million fo 30% As a smaller reporting company, the Company is subject to the provisions of Rule 8 03 3 X 20% three March 31, 2020, one 20% three March 31, 2021, one 20% two three March 31, 2021 2020 Three Months Ended March 31, 2021 2020 (Dollars in thousands) Revenues $ 504 $ 4,624 Cost of home and land sales — 3,065 Gross margin $ 504 $ 1,559 Expenses — 961 Net income $ 504 $ 598 Equity in net income (loss) of unconsolidated joint ventures reflected in the accompanying condensed consolidated statements of operations (1) $ 252 $ (2,226 ) ( 1 Balance represents equity in net income (loss) of unconsolidated joint ventures included in the statements of operations related to the Company's investment in the unconsolidated joint ventures. The balance may In the above table, the Company's $2.2 million loss included in equity in net income (loss) of unconsolidated joint ventures for the three March 31, 2020 For the three March 31, 2021 2020 12. |
Note 7 - Other Assets
Note 7 - Other Assets | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Other Assets Disclosure [Text Block] | 7. Other assets consist of the following: March 31, December 31, 2021 2020 (Dollars in thousands) Capitalized selling and marketing costs, net (1) $ 6,137 $ 5,895 Prepaid income taxes (2) 27,349 27,866 Insurance receivable (3) 5,166 4,816 Warranty insurance receivable (4) 2,589 2,480 Prepaid expenses 5,511 6,331 Right-of-use lease assets 2,886 2,997 Goodwill 2,000 — Other 317 318 $ 51,955 $ 50,703 ( 1 Capitalized selling and marketing costs includes costs incurred for tangible assets directly used in the sales process such as our sales offices, design studios and model furnishings, and also includes model landscaping costs . The Company depreciated $1.2 million and $1.8 million of capitalized selling and marketing costs to selling and marketing expenses during the three March 31, 2021 2020 ( 2 The amount at March 31, 2021 ly $26.9 million ( 3 At December 31, 2020, ompany recorded insurance receivables of $4.8 million which was related to expected insurance reimbursements for $1.0 million in litigation reserves related to one three March 31, 2021 8. ( 4 During the three March 31, 2021, ble upward by $0.2 million to true- 2021 first |
Note 8 - Accrued Expenses and O
Note 8 - Accrued Expenses and Other Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Accrued Expenses and Other Liabilities [Text Block] | 8. Accrued expenses and other liabilities consist of the following: March 31, December 31, 2021 2020 (Dollars in thousands) Warranty accrual (1) $ 7,438 $ 7,276 Litigation reserves (2) 6,434 5,641 Accrued interest 8,782 3,172 Accrued compensation and benefits 3,191 7,106 Completion reserve 4,575 5,683 Customer deposits 7,834 2,898 Lease liabilities 3,112 3,180 Other accrued expenses 3,538 1,254 $ 44,904 $ 36,210 ( 1 Included in the amount at March 31, 2021 December 31, 2020 ely $2.6 million ( 2 At December 31, 2020, related to construction defect claim reserves which consisted of $1.0 million for a claim-specific reserve and $4.6 million for IBNR construction defect claims. During the 2021 first three March 31, 2021, We maintain general liability insurance designed to protect us against a portion of our risk of loss from construction-related warranty and construction defect claims. Our master general liability policies which cover most of our projects allow for our warranty spend to erode our self-insured retention requirements. We establish and track separately our warranty accrual and litigation reserves for both known and IBNR construction defect claims. Our warranty accrual and litigation reserves for construction defect claims are presented on a gross basis within accrued expenses and other liabilities in the accompanying condensed consolidated balance sheets without consideration of insurance recoveries. Expected recoveries from insurance carriers are tracked separately between warranty insurance receivables and insurance receivables related to litigated claims and are presented within other assets in the accompanying condensed consolidated balance sheets. Our warranty accrual and related estimated insurance recoveries are based on historical warranty claim and expense data, and expected recoveries from insurance carriers are recorded based on actual insurance claims and amounts determined using our warranty accrual estimates, our insurance policy coverage limits for the applicable policy years and historical recovery rates. Our litigation reserves for both known and IBNR future construction defect claims based on historical claim and expense data, and expected recoveries from insurance carriers are recorded based on actual insurance claims and amounts determined using our construction defect claim accrual estimates, our insurance policy coverage limits for the applicable policy years and historical recovery rates. Because of the inherent uncertainty and variability in these assumptions, our actual costs and related insurance recoveries could differ significantly from amounts currently estimated. Changes in our warranty accrual are detailed in the table set forth below: Three Months Ended March 31, 2021 2020 (Dollars in thousands) Beginning warranty accrual for homebuilding projects 7,269 $ 7,195 Warranty provision for homebuilding projects 465 421 Warranty payments for homebuilding projects (706 ) (780 ) Adjustment to warranty accrual (1) 403 — Ending warranty accrual for homebuilding projects 7,431 6,836 Beginning warranty accrual for fee building projects 7 28 Warranty provision for fee building projects — — Warranty efforts for fee building projects — — Ending warranty accrual for fee building projects 7 28 Total ending warranty accrual $ 7,438 $ 6,864 ( 1 During the three March 31, 2021, March 31, 2021. three March 31, 2021 |
Note 9 - Senior Notes and Unsec
Note 9 - Senior Notes and Unsecured Revolving Credit Facility | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 9. Indebtedness consisted of the following: March 31, December 31, 2021 2020 (Dollars in thousands) 7.25 $ 280,291 $ 244,865 Unsecured revolving credit facility — — Total Indebtedness $ 280,291 $ 244,865 2022 On March 17, 2017, 2022 May 4, 2017, 2022 "2022 March 17, 2017, During the three March 31, 2020, 2022 2022 As discussed below, the 2022 November 12, 2020. 2025 On October 28, 2020, 2025 2025 144A 1933 2025 2025 2022 rest to the redemption date. On February 24, 2021, 2025 2025 2025 "2025 2025 2025 March 31, 2021 2025 December 31, 2020 2025 2025 April 15 October 15 April 15, 2021. 2025 October 15, 2025. The 2025 not 1 2 3 not January 1, 2021 sell assets, incur liens, create certain restrictions on the ability of restricted subsidiaries to pay dividends or to transfer assets, enter into transactions with affiliates, create unrestricted subsidiaries, and consolidate, merge or sell all or substantially all of its assets. These covenants are subject to a number of exceptions and qualifications as set forth in the Indenture. On or after October 15, 2022, may 2025 not 15 60 12 October 15 Year Redemption Price 2022 103.625% 2023 101.813% 2024 100.000% In addition, any time prior to October 15, 2022, may, one 2025 may not 40% 2025 may one If the Company experiences a change of control triggering event (as described in the Indenture), holders of the 2025 2025 2025 2025 no 2025 2025 The 2025 2025 2025 2025 1 no 2 3 not not no 4 5 not 6 may The New Home Company Inc. operates as a holding company and all of its homebuilding construction, fee building, development and sales activities are conducted through its subsidiaries. At March 31, 2021 December 31, 2020, 100% no 15. Credit Facility On October 30, 2020, April 30, 2023. may March 31, 2021 December 31, 2020, no Amounts outstanding under the Credit Agreement accrue interest at a rate equal to either, at the Company’s election, LIBOR plus a margin of 3.50% to 4.50% per annum, or base rate plus a margin of 2.50% to 3.50%, in each case depending on the Company’s leverage ratio. As of March 31, 2021, was 5.00% The coven not June 30, 2020, ( not no 1 not not 12 March 31, 2021, The Credit Facility also provides for a $30.0 million s ublimit for letters of credit, subject to conditions set forth in the Credit Agreement. As of March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020, Other Notes Payable On April 15, 2020, April 23, 2020, April 24, 2020, In conjunction with the Epic Acquisition during the 2021 first third February 2021. 2021 first |
Note 10 - Fair Value Disclosure
Note 10 - Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 10. ASC 820 three • Level 1 • Level 2 • Level 3 one Fair Value of Financial Instruments The following table presents an estimated fair value of the Company's 2025 2025 2 March 31, 2021 December 31, 2020 Carrying Amount Fair Value Carrying Amount Fair Value (Dollars in thousands) 7.25 (1) $ 280,291 $ 296,400 $ 244,865 $ 256,875 ( 1 The carrying value for the 2025 March 31, 2021 , is net of $5.7 2025 December 31, 2020 emium and debt issuance costs are not The Company considers the carrying value of cash and cash equivalents, restricted cash, contracts and accounts receivable, accounts payable, and accrued expenses and other liabilities to approximate the fair value of these financial instruments based on the short duration between origination of the instruments and their expected realization. The fair value of amounts due from affiliates is not Non-Recurring Fair Value Adjustments Nonfinancial assets and liabilities include items such as real estate inventory and long-lived assets that are measured at cost when acquired and adjusted for impairment to fair value, if deemed necessary. For the three March 31, 2020, 2020 third 2 6. |
Note 11 - Commitments and Conti
Note 11 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 11. From time-to-time, the Company is involved in various legal matters arising in the ordinary course of business, including warranty and construction defect litigation. These claims and legal proceedings are of a nature that we believe are normal and incidental to a homebuilder. We make provisions for loss contingencies when they are probable and the amount of the loss can be reasonably estimated. Such provisions are assessed at least quarterly and adjusted to reflect the impact of any settlement negotiations, judicial and administrative rulings, advice of legal counsel, and other information and events pertaining to a particular case. At December 31, 2020, hich consisted of $1.0 million for a claim-specific reserve and $4.6 million for IBNR construction defect claims. During the three March 31, 2021, March 31, 2021. December 31, 2020, uring the three March 31, 2021, March 31, 2021. 1, 7 8 As an owner and developer of real estate, the Company is subject to various environmental laws of federal, state and local governments. The Company is not We obtain surety bonds in the normal course of business to ensure completion of certain infrastructure improvements of our projects. As of March 31, 2021 December 31, 2020 ng $43.9 million an March 31, 2021 December 31, 2020 $18.2 third not The Company accounts for contracts deemed to contain a lease under ASC 842, Leases one not ed $2.9 llion, re March 31, 2021 December 31, 2020. March 31, 2021 December 31, 2020. For the three March 31, 2021 2020 one Three Months Ended March 31, 2021 2020 (Dollars in thousands) Lease cost: Lease costs included in general and administrative expenses $ 260 $ 311 Lease costs included in real estate inventories 63 97 Lease costs included in selling and marketing expenses 29 39 Net lease cost (1) $ 352 $ 447 Other Information: Lease cash flows (included in operating cash flows) (1) $ 298 $ 498 ( 1 Amount does not one imatel and $0.1 million for three March 31, 2021 2020, one $61,000 and $59,000 for the three March 31, 2021 2020 , respectively. Future lease payments under our operating leases are as follows (dollars in thousands): Remaining for 2021 891 2022 754 2023 631 2024 588 2025 479 Thereafter — Total lease payments (1) $ 3,343 Less: Interest (2) 231 Present value of lease liabilities (3) $ 3,112 ( 1 Lease payments include options to extend lease terms that are reasonably certain of being exercised. ( 2 Our leases do not no not March 31, 2021 December 31, 2020. ( 3 The weighted average remaining lease term and weighted average incremental borrowing rate used in calculating our lease liabil ities were 3.9 years and 4.7 % , resp March 31, 2021 |
Note 12 - Related Party Transac
Note 12 - Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 12. During the three March 31, 2021 2020 March 31, 2021 December 31, 2020 and $0.1 million, respectively, are included in due from affiliates in the accompanying condensed consolidated balance sheets related to suc The Company has entered into agreements with its unconsolidated joint ventures to provide management services related to the underlying projects (collectively referred to as the "Management Agreements"). Pursuant to the Management Agreements, the Company three March 31, 2021 2020 March 31, 2021 December 31, 2020 of management fees are included in due from affiliates in the accompanying condensed consolidated balance sheets. One member of the Company's board of directors beneficially owns more than 10% of the Company's outstanding common stock through an affiliated entity, IHP Capital Partners VI, LLC ("IHP"), and is also affiliated with entities that have investments in two two s wa mil March 31, 2021 December 31, 2020 2020 second 2020 second 2 3, third 2020 fourth 2020 second 1 no 50% 50% In its ordinary course of business, the Company enters into agreements to purchase lots from unconsolidated land development joint ventures of which it is a member. In accordance with ASC 360 20, Property, Plant and Equipment - Real Estate Sales third no March 31, 2021 December 21, 2020, The Company’s land purchase agreement with Cannery provides for reimbursements of certain fee credits. During the three March 31, 2020 2021, not March 31, 2021 December 31, 2020 On June 18, 2015, June 26, 2015 ( 10 June 26, 2019 one June 26, 2020 one $1,000 March 31, 2021 no On February 14, 2019, March 1, 2019. The agreement originally was set to expire on March 1, 2020 At March 31, 2021 , no During 2018, December 31, 2019, no 2020. three March 31, 2021 2020, March 31, 2021 December 31, 2020, three March 31, 2021 2020, In the first 2018, 2018, 2020 third 2020, three March 31, 2021 2020, fourth 2018, second December 31, 2020, three March 31, 2021 2020, The Company sold its interest in the Bedford joint venture to its partner during the 2020 third During the three March 31, 2020, the Company recorded a $2.3 million other-than-temporary impairment charge to its investment in the Bedford joint venture reflecting the expected sale of its joint venture investment for less than its current carrying value. The sale agreement, among other things, allowed for a continuation of the Company's option to purchase at market up to 30% of the total lots from the joint venture. |
Note 13 - Stock-based Compensat
Note 13 - Stock-based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 13. The Company's 2014 "2014 January 2014. 2014 2014 tenth The number of shares of our common stock authorized to be issued under the 2014 2014 not 2014 At our 2016 May 24, 2016, 2016 "2016 2016 2016 May 22, 2018, 2016 2016 April 4, 2028. The Company has issued stock option and restricted stock unit awards under the 2014 awards under the 2016 March 31, 2021 , 338 shares r emain available for grant under the 2014 d 122,300 sha 2016 may not one three ten A summary of the Company’s common stock option activity as of and for the three March 31, 2021 2020 Three Months Ended March 31, 2021 2020 Number of Shares Weighted-Average Exercise Price per Share Number of Shares Weighted-Average Exercise Price per Share Outstanding Stock Option Activity Outstanding, beginning of period 1,220,695 $ 9.18 1,068,017 $ 9.78 Granted — $ — 161,479 $ 5.36 Exercised — $ — — $ — Forfeited — $ — — $ — Outstanding, end of period 1,220,695 $ 9.18 1,229,496 $ 9.20 Exercisable, end of period 1,029,950 $ 9.86 901,829 $ 10.52 A summary of the Company’s restricted stock unit activity as of and for the three March 31, 2021 2020 Three Months Ended March 31, 2021 2020 Number of Shares Weighted-Average Grant-Date Fair Value per Share Number of Shares Weighted-Average Grant-Date Fair Value per Share Restricted Stock Unit Activity Outstanding, beginning of period 704,890 $ 5.11 592,116 $ 6.36 Granted 363,198 $ 5.39 241,556 $ 5.36 Vested (161,032 ) $ 6.86 (152,177 ) $ 9.45 Forfeited — $ — (428 ) $ 11.68 Outstanding, end of period 907,056 $ 4.91 681,067 $ 5.32 The expense related to the Company's stock-based compensation programs, included in general and administrative expense in the accompanying condensed consolidated statements of operations, was as follows: Three Months Ended March 31, 2021 2020 (Dollars in thousands) Expense related to: Stock options $ 91 $ 64 Restricted stock units 554 525 $ 645 $ 589 The following table presents details of the assumptions used to calculate the weighted-average grant date fair value of common stock options granted by the Company in each period: Three Months Ended March 31, 2021 2020 Expected term (in years) N/A 6.0 Expected volatility N/A 41.8 % Risk-free interest rate N/A 1.4 % Expected dividends N/A — Weighted-average grant date fair value per share N/A $ 2.24 We used the "simplified method" to establish the expected term of the common stock options granted by the Company. Our restricted stock unit awards are valued based on the closing price of our common stock on the date of grant. Compensation expense for restricted stock unit awards is recognized using the straight-line method over the requisite service period. Forfeitures are recognized in compensation cost during the period that the award forfeiture occurs. At March 31, 2021, 2024 may |
Note 14 - Income Taxes
Note 14 - Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 14. For the three March 31, 2021 , the Company recorded an income tax provision of $0.5 million which included a $0.3 million discrete provision. three March 31, 2021 For the three March 31, 2020, three March 31, 2020 2020 first three March 31, 2020 March 27, 2020. 4. 2018 2020 five 21% 35% The components of our deferred tax asset, net are as follows: March 31, December 31, 2021 2020 (Dollars in thousands) Net operating loss carryforwards $ 5,808 $ 5,808 Tax credit carryforwards 2,479 2,401 Reserves and accruals 2,877 2,870 Share based compensation 1,512 1,441 Inventory 2,663 3,142 Investments in joint ventures 1,081 1,226 Other 96 26 Depreciation and amortization (655 ) (653 ) Right-of-use lease asset (804 ) (814 ) Deferred tax asset, net $ 15,057 $ 15,447 |
Note 15 - Segment Information
Note 15 - Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 15. The Company’s operations are organiz ed into four reportable three 280. Our homebuilding operations acquire and develop land and construct and sell single-family attached and detached homes and may third no velopment, sales or land acquisition activities, our corporate operations develop and implement strategic initiatives and support our operating segments by centralizing key administrative functions such as accounting, finance and treasury, information technology, insurance and risk management, litigation, marketing and human resources. A portion of the expenses incurred by corporate are allocated to the fee building segment primarily based on its respective percentage of revenues and to each homebuilding segment based on its respective investment in unconsolidated joint ventures and real estate inventories balances. The majority o Corporate unallocated assets consists primarily of cash, prepaid taxes and our deferred tax asset. For cash management efficiency and yield maximization reasons, cash is held at the corporate level. All cash is held for the benefit of the subsidiaries that comprise the homebuilding and fee building segments, and all operating cash flow is generated by these subsidiaries. The majority of our prepaid taxes and deferred tax asset are recorded at the corporate level as The New Home Company Inc. is the tax-filing entity for the subsidiaries structured as pass-through entities. Taxable income or loss and the resulting payment of income taxes is driven by the activities of the Company's subsidiaries. All other corporate assets comprise less than 3% The reportable segments follow the same accounting policies as our consolidated financial statements described in Note 1. not Financial information relating to reportable segments was as follows: Three Months Ended March 31, 2021 2020 (Dollars in thousands) Homebuilding revenues: California home sales $ 83,214 $ 83,280 California land sales — 147 Arizona home sales 7,698 12,379 Colorado home sales 2,943 — Total homebuilding revenues 93,855 95,806 Fee building revenues, including management fees 5,301 36,227 Total revenues $ 99,156 $ 132,033 Homebuilding pretax income (loss): California $ 3,887 $ (4,451 ) Arizona (1,623 ) (14,692 ) Colorado (1) (1,364 ) — Total homebuilding pretax income (loss) 900 (19,143 ) Fee building pretax income, including management fees 104 730 Total pretax income (loss) $ 1,004 $ (18,413 ) March 31, December 31, 2021 2020 (Dollars in thousands) Homebuilding assets: California $ 305,740 $ 295,340 Arizona 74,872 70,457 Colorado 50,502 — Total homebuilding assets 431,114 365,797 Fee building assets 1,783 3,756 Corporate unallocated assets 106,835 126,146 Total assets $ 539,732 $ 495,699 ( 1 Includes $1.0 million of transaction costs, $0.8 million of which was tail insurance premiums and $0.2 million in professional fees, related to the acquisition of Epic Homes that were expensed currently in the period of acquisition. In addition, the Colorado pretax loss includes $0.3 million in additional cost of sales related to purchase accounting adjustments. |
Note 16 - Supplemental Disclosu
Note 16 - Supplemental Disclosure of Cash Flow Information | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | 16. The following table presents certain supplemental cash flow information: Three Months Ended March 31, 2021 2020 (Dollars in thousands) Supplemental disclosures of cash flow information Interest paid, net of amounts capitalized $ — $ — Income taxes paid $ — $ — Supplemental disclosures of non-cash transactions Assets acquired related to business combination, net of cash acquired $ 33,326 $ — Liabilities assumed and incurred related to business combination, net of $ 280 $ 33,046 $ — |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts have been eliminated upon consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10 X 10 December 31, 2020 not 19" Unless the context otherwise requires, the terms "we", "us", "our" and "the Company" refer to the Company and its wholly owned subsidiaries, on a consolidated basis. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying condensed consolidated financial statements and notes. Accordingly, actual results could differ materially from these estimates. |
Reclassification, Comparability Adjustment [Policy Text Block] | Reclassifications No |
Segment Reporting, Policy [Policy Text Block] | Segment Reporting Accounting Standards Codification ("ASC") 280, Segment Reporting ("ASC 280" 280, |
Cash and Cash Equivalents, Unrestricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents We define cash and cash equivalents as cash on hand, demand deposits with financial institutions, and short term liquid investments with a maturity date of less than three |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash Restricted cash of $0.2 million and $0.2 million as of March 31, 2021 December 31, 2020 The table below shows the line items and amounts of cash and cash equivalents and restricted cash as reported within the Company's condensed consolidated balance sheets for each period shown that sum to the total of the same such amounts at the end of the periods shown in the accompanying condensed consolidated statements of cash flows. Three Months Ended March 31, 2021 2020 (Dollars in thousands) Cash and cash equivalents $ 114,815 $ 87,863 Restricted cash 230 424 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 115,045 $ 88,287 |
Inventory, Real Estate, Policy [Policy Text Block] | Real Estate Inventories and Cost of Sales We capitalize pre-acquisition, land, development and other allocated costs, including interest, property taxes and indirect construction costs. Pre-acquisition costs, including nonrefundable land deposits, are expensed to project abandonment costs if we determine continuation of the prospective project is not Land, development and other common costs are typically allocated to real estate inventories using a methodology that approximates the relative-sales-value method. Home construction costs per production phase are recorded using the specific identification method. Cost of sales for homes closed includes the estimated total construction costs of each home at completion and an allocation of all applicable land acquisition, land development and related common costs (both incurred and estimated to be incurred) based upon the relative-sales-value of the home within each project. Changes in estimated development and common costs are allocated prospectively to remaining homes in the project. In accordance with ASC 360, Property, Plant and Equipment 360" not not If there are indicators of impairment, we perform a detailed budget and cash flow review of the applicable real estate inventories to determine whether the estimated future undiscounted cash flows of the project are more or less than the asset’s carrying value. If the estimated future undiscounted cash flows exceed the asset’s carrying value, no 820, Fair Value Measurements and Disclosures 820" When estimating undiscounted future cash flows of a project, we make various assumptions, including: (i) expected sales prices and sales incentives to be offered, including the number of homes available, pricing and incentives being offered by us or other builders in other projects, and future sales price adjustments based on market and economic trends; (ii) expected sales pace and cancellation rates based on local housing market conditions, competition and historical trends; (iii) costs expended to date and expected to be incurred including, but not may Many assumptions are interdependent and a change in one may may If a real estate asset is deemed impaired, the impairment is calculated by determining the amount the asset's carrying value exceeds its fair value in accordance with ASC 820. not three March 31, 2021 2020, three March 31, 2021 2020 |
Interest Capitalization, Policy [Policy Text Block] | Capitalization of Interest We follow the practice of capitalizing interest to real estate inventories during the period of development and to investments in unconsolidated joint ventures, when applicable, in accordance with ASC 835, Interest 835" third third 835, |
Business Combinations Policy [Policy Text Block] | Business Combinations We account for business combinations in accordance with ASC Topic 805, Business Combinations 805" February 26, 2021, 805. 4, Following the consummation of the Epic Acquisition, the Company repaid approximately $23.8 million of the Epic Companies’ third |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill In accordance with ASC Topic 350, Intangibles-Goodwill and Other 350” not September 30 not not In conjunction with the Company's Epic Acquisition during the 2021 first March 31, 2021. March 31, 2021, not |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers 606" 606, five 606: Home Sales and Profit Recognition In accordance with ASC 606, not Land Sales and Profit Recognition In accordance with ASC 606, may may not Fee Building The Company enters into fee building agreements to provide services whereby it builds homes on behalf of third third third third 606, The Company also provides construction management and coordination services and sales and marketing services as part of agreements with third 606. may 606. The Company’s fee bui lding revenues have historically been concentrated with a small number of customers. For the three March 31, 2021 2020 , one customer co prised 34 % and third March 31, 2021 December 31, 2020 comprised 8 25%, |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Variable Interest Entities The Company accounts for variable interest entities in accordance with ASC 810, Consolidation 810" 810, not not not not Once we consider the sufficiency of equity and voting rights of each legal entity, we then evaluate the characteristics of the equity holders' interests, as a group, to see if they qualify as controlling financial interests. Our real estate joint ventures consist of limited partnerships and limited liability companies. For entities structured as limited partnerships or limited liability companies, our evaluation of whether the equity holders (equity partners other than us in each our joint ventures) lack the characteristics of a controlling financial interest includes the evaluation of whether the limited partners or non-managing members (the non-controlling equity holders) lack both substantive participating rights and substantive kick-out rights, defined as follows: • Participating rights - provide the non-controlling equity holders the ability to direct significant financial and operational decision made in the ordinary course of business that most significantly influence the entity's economic performance. • Kick-out rights - allow the non-controlling equity holders to remove the general partner or managing member without cause. If we conclude that any of the three If an entity is deemed to be a VIE pursuant to ASC 810, Under ASC 810, may not may not may March 31, 2021 posi ts of $10.1 million pertaining to land option contracts and purchase contracts. As of March 31, 2021 December 31, 2020 not 810, |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | Non-controlling Interest During 2013, third 810, not third 2020, March 31, 2021 December 31, 2020 third $0 |
Equity Method Investments [Policy Text Block] | Investments in Unconsolidated Joint Ventures We use the equity method to account for investments in homebuilding and land development joint ventures when any of the following situations exist: 1 not 2 not 3 As of March 31, 2021 none Under the equity method, we recognize our proportionate share of earnings and losses generated by the joint venture upon the delivery of lots or homes to third third 230, Statement of Cash Flows 230" We review real estate inventory held by our unconsolidated joint ventures for impairment on a quarterly basis, consistent with how we review our real estate inventories as described in more detail above in the section entitled "Real Estate Inventories and Cost of Sales." We also review our investments in and advances to unconsolidated joint ventures for evidence of other-than-temporary declines in value in accordance with ASC 820. not three March 31, 2021 2020 arges of illion, |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | Selling and Marketing Expense Costs incurred for tangible assets directly used in the sales process such as our sales offices, design studios and model landscaping and furnishings are capitalized to other assets in the accompanying condensed consolidated balance sheets under ASC 340, Other Assets and Deferred Costs 340" 30 |
Standard Product Warranty, Policy [Policy Text Block] | Warranty and Litigation Accruals We offer warranties on our homes that generally cover various defects in workmanship or materials, or structural construction defects for one two third While our subcontractors who perform our homebuilding work generally provide us with an indemnity for claims relating to their workmanship and materials, we also purchase general liability insurance that covers development and construction activity at each of our communities. Our subcontractors are usually covered by these programs through an owner-controlled insurance program, or "OCIP." Consultants such as engineers and architects are generally not not |
Receivable [Policy Text Block] | Contracts and Accounts Receivable Contracts and accounts receivable primarily represent the fees earned, but not not not March 31, 2021 December 31, 2020 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Equipment and Capitalized Selling and Marketing Costs Property, equipment and capitalized selling and marketing costs are recorded at cost and included in other assets in the accompanying condensed consolidated balance sheets. Property and equipment are depreciated to general and administrative expenses using the straight-line method over their estimated useful lives ranging from three five |
Income Tax, Policy [Policy Text Block] | Income Taxes Income taxes are accounted for in accordance with ASC 740, Income Taxes 740" Each quarter we assess our deferred tax asset to determine whether all or any portion of the asset is more likely than not 50% 740. not 740, March 31, 2021 December 31, 2020, not recorde 14 ASC 740 not, not March 31, 2021 no The Company classifies any interest and penalties related to income taxes assessed as part of the provision/benefit for income taxes. As of March 31, 2021 not |
Share-based Payment Arrangement [Policy Text Block] | Stock-Based Compensation We account for share-based awards in accordance with ASC 718, Compensation – Stock Compensation 718" 718 718 |
Stockholders' Equity, Policy [Policy Text Block] | Share Repurchase and Retirement When shares are retired, the Company’s policy is to allocate the excess of the repurchase price over the par value of shares acquired to both retained earnings and additional paid-in capital. The portion allocated to additional paid-in capital is determined by applying a percentage, which is determined by dividing the number of shares to be retired by the number of shares issued, to the balance of additional paid-in capital as of the retirement date. The residual, if any, is allocated to retained earnings as of the retirement date. During the three March 31, 2021, d retired 141,823 shares o urchase price of $ 0.8 million. During the three March 31, 2020 , the Company repurchased and retired 1,233,883 shares of its common stock at an aggregate purchase price of $2.2 million. The purchases were made under previously announced stock repurchase programs and the Company had remaining purchase authorization of $8.7 million as of March 31, 2021 January 1, 2021 February 16, 2021, March 11, 2021 March 31, 2021 March 20, 2020 March 31, 2020 10b5 1 |
Tax Benefit Preservation Plan [Policy Text Block] | Tax Benefit Preservation Plan On May 8, 2020, 2020 five not May 7, 2021; March 2021, March 29, 2021. March 29, 2021 no |
Dividends, Policy [Policy Text Block] | Dividends No dividends were paid on our common stock during the three March 31, 2021 2020 not not |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards In June 2016, 2016 13, Financial Instruments - Credit Losses (Topic 326 2016 13" 2019 04, Codification Improvements to Topic 326, 815, 825, April 2019, 2019 05, Financial Instruments - Credit Losses (Topic 326 May 2019, 2019 11, Codification Improvements to Topic 326, November 2019, 2020 02 , Financial Instruments - Credit Losses (Topic 326 842 February 2020 January 1, 2020, November 2019, 2019 10, Financial Instruments - Credit Losses (Topic 326 815 842 December 15, 2022, not 2016 13 January 1, 2021, not In December 2019, 2019 12, Income Taxes (Topic 740 Simplifying the Accounting for Income Taxes ("ASU 2019 12" December 15, 2020. 2019 12 January 1, 2021 no In January 2020, 2020 01, Investments - Equity Securities (Topic 321 323 815 ("ASU 2020 01" 2020 01 321 323 815. December 31, 2020, 2020 01 January 1, 2021 no In October 2020, 2020 10, Codification Improvements 2020 10" 2020 10 December 15, 2020, 2020 10 effective January 1, 2021 and experienced no as a result of adoption |
Note 1 - Organization and Sum_2
Note 1 - Organization and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Cash and Cash Equivalents [Table Text Block] | Three Months Ended March 31, 2021 2020 (Dollars in thousands) Cash and cash equivalents $ 114,815 $ 87,863 Restricted cash 230 424 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 115,045 $ 88,287 |
Note 2 - Computation of Earni_2
Note 2 - Computation of Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, 2021 2020 (Dollars in thousands, except per share amounts) Numerator: Net income (loss) $ 553 $ (8,476 ) Denominator: Basic weighted-average shares outstanding 18,109,015 19,951,825 Effect of dilutive shares: Stock options and unvested restricted stock units 311,616 — Diluted weighted-average shares outstanding 18,420,631 19,951,825 Basic earnings (loss) per share $ 0.03 $ (0.42 ) Diluted earnings (loss) per share $ 0.03 $ (0.42 ) Antidilutive stock options and unvested restricted stock units not included in diluted earnings (loss) per share 1,397,559 1,785,826 |
Note 3 - Contracts and Accoun_2
Note 3 - Contracts and Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | March 31, December 31, 2021 2020 (Dollars in thousands) Contracts receivable: Costs incurred on fee building projects $ 5,197 $ 79,583 Estimated earnings 104 1,420 5,301 81,003 Less: amounts collected during the period (4,152 ) (77,861 ) Contracts receivable $ 1,149 $ 3,142 Contracts receivable: Billed $ — $ — Unbilled 1,149 3,142 1,149 3,142 Accounts receivable: Escrow receivables 3,581 1,782 Other receivables 400 — Contracts and accounts receivable $ 5,130 $ 4,924 |
Note 4 - Real Estate Inventor_2
Note 4 - Real Estate Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Inventory, Noncurrent [Table Text Block] | March 31, December 31, 2021 2020 (Dollars in thousands) Deposits and pre-acquisition costs $ 14,542 $ 12,202 Land held and land under development 120,930 127,807 Homes completed or under construction 174,086 133,567 Model homes 42,031 41,381 $ 351,589 $ 314,957 |
Note 5 - Capitalized Interest (
Note 5 - Capitalized Interest (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Interest Income and Interest Expense Disclosure [Table Text Block] | Three Months Ended March 31, 2021 2020 (Dollars in thousands) Interest incurred $ 5,331 $ 6,380 Interest capitalized to inventory (4,977 ) (5,662 ) Interest expensed $ 354 $ 718 Capitalized interest in beginning inventory $ 22,053 $ 26,397 Interest capitalized as a cost of inventory 4,977 5,662 Previously capitalized interest included in cost of home and land sales (4,027 ) (6,146 ) Previously capitalized interest included in project abandonment costs — (761 ) Capitalized interest in ending inventory $ 23,003 $ 25,152 Capitalized interest in beginning investment in unconsolidated joint ventures $ — $ 541 Previously capitalized interest included in equity in net income (loss) of unconsolidated joint ventures — (448 ) Capitalized interest in ending investment in unconsolidated joint ventures — 93 Total capitalized interest in ending inventory and investments in unconsolidated joint ventures $ 23,003 $ 25,245 Capitalized interest as a percentage of inventory 6.5 % 6.3 % Interest included in cost of home sales as a percentage of home sales revenue 4.2 % 6.5 % Capitalized interest as a percentage of investment in unconsolidated joint ventures — % 0.3 % |
Note 6 - Investments in Uncon_2
Note 6 - Investments in Unconsolidated Joint Ventures (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Equity Method Investments [Table Text Block] | March 31, December 31, 2021 2020 (Dollars in thousands) Cash and cash equivalents $ 15,539 $ 16,709 Restricted cash 250 611 Real estate inventories — 3,172 Other assets 1,145 1,834 Total assets $ 16,934 $ 22,326 Accounts payable and accrued liabilities $ 12,898 $ 13,487 Notes payable — — Total liabilities 12,898 13,487 The New Home Company's equity (1) 903 2,107 Other partners' equity 3,133 6,732 Total equity 4,036 8,839 Total liabilities and equity $ 16,934 $ 22,326 Three Months Ended March 31, 2021 2020 (Dollars in thousands) Revenues $ 5,353 $ 31,647 Cost of sales and expenses 5,152 30,285 Net income of unconsolidated joint ventures $ 201 $ 1,362 Equity in net income (loss) of unconsolidated joint ventures reflected in the accompanying condensed consolidated statements of operations $ 174 $ (1,937 ) Three Months Ended March 31, 2021 2020 (Dollars in thousands) Revenues $ 504 $ 4,624 Cost of home and land sales — 3,065 Gross margin $ 504 $ 1,559 Expenses — 961 Net income $ 504 $ 598 Equity in net income (loss) of unconsolidated joint ventures reflected in the accompanying condensed consolidated statements of operations (1) $ 252 $ (2,226 ) |
Note 7 - Other Assets (Tables)
Note 7 - Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Other Assets [Table Text Block] | March 31, December 31, 2021 2020 (Dollars in thousands) Capitalized selling and marketing costs, net (1) $ 6,137 $ 5,895 Prepaid income taxes (2) 27,349 27,866 Insurance receivable (3) 5,166 4,816 Warranty insurance receivable (4) 2,589 2,480 Prepaid expenses 5,511 6,331 Right-of-use lease assets 2,886 2,997 Goodwill 2,000 — Other 317 318 $ 51,955 $ 50,703 |
Note 8 - Accrued Expenses and_2
Note 8 - Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Accrued Expenses and Other Liabilities [Table Text Block] | March 31, December 31, 2021 2020 (Dollars in thousands) Warranty accrual (1) $ 7,438 $ 7,276 Litigation reserves (2) 6,434 5,641 Accrued interest 8,782 3,172 Accrued compensation and benefits 3,191 7,106 Completion reserve 4,575 5,683 Customer deposits 7,834 2,898 Lease liabilities 3,112 3,180 Other accrued expenses 3,538 1,254 $ 44,904 $ 36,210 |
Schedule of Product Warranty Liability [Table Text Block] | Three Months Ended March 31, 2021 2020 (Dollars in thousands) Beginning warranty accrual for homebuilding projects 7,269 $ 7,195 Warranty provision for homebuilding projects 465 421 Warranty payments for homebuilding projects (706 ) (780 ) Adjustment to warranty accrual (1) 403 — Ending warranty accrual for homebuilding projects 7,431 6,836 Beginning warranty accrual for fee building projects 7 28 Warranty provision for fee building projects — — Warranty efforts for fee building projects — — Ending warranty accrual for fee building projects 7 28 Total ending warranty accrual $ 7,438 $ 6,864 |
Note 9 - Senior Notes and Uns_2
Note 9 - Senior Notes and Unsecured Revolving Credit Facility (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | March 31, December 31, 2021 2020 (Dollars in thousands) 7.25 $ 280,291 $ 244,865 Unsecured revolving credit facility — — Total Indebtedness $ 280,291 $ 244,865 |
Debt Instrument Redemption [Table Text Block] | Year Redemption Price 2022 103.625% 2023 101.813% 2024 100.000% |
Note 10 - Fair Value Disclosu_2
Note 10 - Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | March 31, 2021 December 31, 2020 Carrying Amount Fair Value Carrying Amount Fair Value (Dollars in thousands) 7.25 (1) $ 280,291 $ 296,400 $ 244,865 $ 256,875 |
Note 11 - Commitments and Con_2
Note 11 - Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three Months Ended March 31, 2021 2020 (Dollars in thousands) Lease cost: Lease costs included in general and administrative expenses $ 260 $ 311 Lease costs included in real estate inventories 63 97 Lease costs included in selling and marketing expenses 29 39 Net lease cost (1) $ 352 $ 447 Other Information: Lease cash flows (included in operating cash flows) (1) $ 298 $ 498 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Remaining for 2021 891 2022 754 2023 631 2024 588 2025 479 Thereafter — Total lease payments (1) $ 3,343 Less: Interest (2) 231 Present value of lease liabilities (3) $ 3,112 |
Note 13 - Stock-based Compens_2
Note 13 - Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Three Months Ended March 31, 2021 2020 Number of Shares Weighted-Average Exercise Price per Share Number of Shares Weighted-Average Exercise Price per Share Outstanding Stock Option Activity Outstanding, beginning of period 1,220,695 $ 9.18 1,068,017 $ 9.78 Granted — $ — 161,479 $ 5.36 Exercised — $ — — $ — Forfeited — $ — — $ — Outstanding, end of period 1,220,695 $ 9.18 1,229,496 $ 9.20 Exercisable, end of period 1,029,950 $ 9.86 901,829 $ 10.52 |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | Three Months Ended March 31, 2021 2020 Number of Shares Weighted-Average Grant-Date Fair Value per Share Number of Shares Weighted-Average Grant-Date Fair Value per Share Restricted Stock Unit Activity Outstanding, beginning of period 704,890 $ 5.11 592,116 $ 6.36 Granted 363,198 $ 5.39 241,556 $ 5.36 Vested (161,032 ) $ 6.86 (152,177 ) $ 9.45 Forfeited — $ — (428 ) $ 11.68 Outstanding, end of period 907,056 $ 4.91 681,067 $ 5.32 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three Months Ended March 31, 2021 2020 (Dollars in thousands) Expense related to: Stock options $ 91 $ 64 Restricted stock units 554 525 $ 645 $ 589 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended March 31, 2021 2020 Expected term (in years) N/A 6.0 Expected volatility N/A 41.8 % Risk-free interest rate N/A 1.4 % Expected dividends N/A — Weighted-average grant date fair value per share N/A $ 2.24 |
Note 14 - Income Taxes (Tables)
Note 14 - Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | March 31, December 31, 2021 2020 (Dollars in thousands) Net operating loss carryforwards $ 5,808 $ 5,808 Tax credit carryforwards 2,479 2,401 Reserves and accruals 2,877 2,870 Share based compensation 1,512 1,441 Inventory 2,663 3,142 Investments in joint ventures 1,081 1,226 Other 96 26 Depreciation and amortization (655 ) (653 ) Right-of-use lease asset (804 ) (814 ) Deferred tax asset, net $ 15,057 $ 15,447 |
Note 15 - Segment Information (
Note 15 - Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended March 31, 2021 2020 (Dollars in thousands) Homebuilding revenues: California home sales $ 83,214 $ 83,280 California land sales — 147 Arizona home sales 7,698 12,379 Colorado home sales 2,943 — Total homebuilding revenues 93,855 95,806 Fee building revenues, including management fees 5,301 36,227 Total revenues $ 99,156 $ 132,033 Homebuilding pretax income (loss): California $ 3,887 $ (4,451 ) Arizona (1,623 ) (14,692 ) Colorado (1) (1,364 ) — Total homebuilding pretax income (loss) 900 (19,143 ) Fee building pretax income, including management fees 104 730 Total pretax income (loss) $ 1,004 $ (18,413 ) March 31, December 31, 2021 2020 (Dollars in thousands) Homebuilding assets: California $ 305,740 $ 295,340 Arizona 74,872 70,457 Colorado 50,502 — Total homebuilding assets 431,114 365,797 Fee building assets 1,783 3,756 Corporate unallocated assets 106,835 126,146 Total assets $ 539,732 $ 495,699 |
Note 16 - Supplemental Disclo_2
Note 16 - Supplemental Disclosure of Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Three Months Ended March 31, 2021 2020 (Dollars in thousands) Supplemental disclosures of cash flow information Interest paid, net of amounts capitalized $ — $ — Income taxes paid $ — $ — Supplemental disclosures of non-cash transactions Assets acquired related to business combination, net of cash acquired $ 33,326 $ — Liabilities assumed and incurred related to business combination, net of $ 280 $ 33,046 $ — |
Note 1 - Organization and Sum_3
Note 1 - Organization and Summary of Significant Accounting Policies (Details Textual) | Feb. 26, 2021USD ($) | Mar. 31, 2021USD ($)shares | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($)shares | Dec. 31, 2020USD ($) |
Public Float Value | $ 46,000,000 | ||||
Restricted Cash, Total | $ 230,000 | $ 424,000 | $ 180,000 | ||
Abandoned Project Costs | 68,000 | 14,036,000 | |||
Repayments of Notes Payable | 23,848,000 | $ 0 | |||
Goodwill, Ending Balance | 2,000,000 | 0 | |||
Nonrefundable Cash Deposits | $ 10,100,000 | ||||
Period of General Warranty (Year) | 1 year | ||||
Accounts Receivable, Allowance for Credit Loss, Ending Balance | $ 0 | 0 | |||
Capitalized Selling and Marketing Cost, Amortization Period (Month) | 30 months | ||||
Deferred Tax Assets, Valuation Allowance, Total | $ 20,000 | 20,000 | |||
Income Tax Examination, Penalties and Interest Accrued, Total | $ 0 | ||||
Stock Repurchased and Retired During Period, Shares (in shares) | shares | 141,823 | 1,233,883 | |||
Stock Repurchased and Retired During Period, Value | $ 756,000 | $ 2,233,000 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 8,700,000 | ||||
Dividends, Common Stock, Total | $ 0 | 0 | |||
Minimum [Member] | |||||
Limited Warranty Period (Year) | 2 years | ||||
Property, Plant and Equipment, Useful Life (Year) | 3 years | ||||
Maximum [Member] | |||||
Property, Plant and Equipment, Useful Life (Year) | 5 years | ||||
Unconsolidated Joint Ventures [Member] | |||||
Equity Method Investment, Ownership Percentage | 35.00% | ||||
Equity Method Investment, Other than Temporary Impairment | $ 0 | $ 20,000,000 | 2,300,000 | ||
Unconsolidated Joint Ventures [Member] | Minimum [Member] | |||||
Equity Method Investment, Ownership Percentage | 10.00% | ||||
Unconsolidated Joint Ventures [Member] | Maximum [Member] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||
Noncontrolling Interest [Member] | |||||
Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance | $ 0 | $ 0 | |||
Stock Repurchased and Retired During Period, Value | $ 0 | $ 0 | |||
Customer Concentration Risk [Member] | Fee Building Revenue [Member] | |||||
Number of Major Customers | 1 | 1 | |||
Customer Concentration Risk [Member] | Fee Building Revenue [Member] | One Customer [Member] | |||||
Concentration Risk, Percentage | 34.00% | 98.00% | |||
Customer Concentration Risk [Member] | Fee Building Revenue [Member] | Separate Fee Building Customer [Member] | |||||
Concentration Risk, Percentage | 62.00% | 0.00% | |||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||||
Number of Major Customers | 1 | 1 | |||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | One Customer [Member] | |||||
Concentration Risk, Percentage | 8.00% | 35.00% | |||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Separate Fee Building Customer [Member] | |||||
Concentration Risk, Percentage | 12.00% | 25.00% | |||
The Epic Acquisition [Member] | |||||
Business Combination, Consideration Transferred, Total | $ 8,500,000 | ||||
Payments to Acquire Businesses, Gross | 6,900,000 | ||||
The Epic Acquisition [Member] | Colorado Homebuilding Segment [Member] | |||||
Goodwill, Impairment Loss | $ 0 | ||||
The Epic Acquisition [Member] | Colorado Homebuilding Segment [Member] | Other Assets [Member] | |||||
Goodwill, Ending Balance | 2,000,000 | 2,000,000 | |||
The Epic Acquisition [Member] | Epic Companies Indebtness [Member] | |||||
Repayments of Notes Payable | $ 23,800,000 | 23,800,000 | |||
Home Building [Member] | |||||
Inventory Write-down | $ 0 | $ 0 |
Note 1 - Organization and Sum_4
Note 1 - Organization and Summary of Significant Accounting Policies - Cash and Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Cash and cash equivalents | $ 114,815 | $ 107,279 | $ 87,863 |
Restricted cash | 230 | $ 180 | 424 |
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows | $ 115,045 | $ 88,287 |
Note 2 - Computation of Earni_3
Note 2 - Computation of Earnings (Loss) Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net income (loss) | $ 553 | $ (8,476) |
Basic weighted-average shares outstanding (in shares) | 18,109,015 | 19,951,825 |
Stock options and unvested restricted stock units (in shares) | 311,616 | 0 |
Diluted weighted-average shares outstanding (in shares) | 18,420,631 | 19,951,825 |
Basic earnings (loss) per share (in dollars per share) | $ 0.03 | $ (0.42) |
Diluted earnings (loss) per share (in dollars per share) | $ 0.03 | $ (0.42) |
Antidilutive stock options and unvested restricted stock units not included in diluted earnings (loss) per share (in shares) | 1,397,559 | 1,785,826 |
Note 3 - Contracts and Accoun_3
Note 3 - Contracts and Accounts Receivable (Details Textual) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Construction Payable | $ 0.8 | $ 2.6 |
Note 3 - Contracts and Accoun_4
Note 3 - Contracts and Accounts Receivable - Contracts and Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Costs incurred on fee building projects | $ 5,197 | $ 79,583 |
Estimated earnings | 104 | 1,420 |
Contracts receivable, before collections | 5,301 | 81,003 |
Less: amounts collected during the period | (4,152) | (77,861) |
Contracts receivable | 1,149 | 3,142 |
Billed | 0 | 0 |
Unbilled | 1,149 | 3,142 |
Total contracts receivable | 1,149 | 3,142 |
Escrow receivables | 3,581 | 1,782 |
Other receivables | 400 | 0 |
Contracts and accounts receivable | $ 5,130 | $ 4,924 |
Note 4 - Real Estate Inventor_3
Note 4 - Real Estate Inventories (Details Textual) - USD ($) $ in Thousands | Feb. 26, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Feb. 16, 2021 | Dec. 31, 2020 |
Inventory, Real Estate, Refundable | $ 100 | $ 100 | |||
Goodwill, Ending Balance | 2,000 | $ 0 | |||
Repayments of Notes Payable | 23,848 | $ 0 | |||
Impairment of Real Estate | 0 | 0 | |||
Impairment of Long-Lived Assets to be Disposed of | 68 | 14,036 | |||
Luxury Condominium Project in Scottsdale, Arizona [Member] | |||||
Impairment of Long-Lived Assets to be Disposed of | $ 14,000 | ||||
The Epic Acquisition [Member] | |||||
Business Combination, Consideration Transferred, Total | $ 8,500 | ||||
Payments to Acquire Businesses, Gross | 6,900 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 37,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 1,200 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 24,100 | ||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Accounts Payable And Other Accrued Liabilities | 7,600 | ||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 2,000 | ||||
Business Combination, Acquisition Related Costs | 1,000 | ||||
The Epic Acquisition [Member] | Epic Companies Indebtness [Member] | |||||
Repayments of Notes Payable | 23,800 | 23,800 | |||
The Epic Acquisition [Member] | Colorado Homebuilding Segment [Member] | Other Assets [Member] | |||||
Goodwill, Ending Balance | $ 2,000 | $ 2,000 |
Note 4 - Real Estate Inventor_4
Note 4 - Real Estate Inventories - Real Estate Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Deposits and pre-acquisition costs | $ 14,542 | $ 12,202 |
Land held and land under development | 120,930 | 127,807 |
Homes completed or under construction | 174,086 | 133,567 |
Model homes | 42,031 | 41,381 |
Inventory, Real Estate, Total | $ 351,589 | $ 314,957 |
Note 5 - Capitalized Interest_2
Note 5 - Capitalized Interest (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Previously Capitalized Interest Included in Project Abandonments Costs | $ 0 | $ 761 |
Other than Temporary Impairment Losses, Investments, Total | $ 400 |
Note 5 - Capitalized Interest -
Note 5 - Capitalized Interest - Summary of Interest Incurred, Capitalized, and Expensed (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Interest incurred | $ 5,331 | $ 6,380 |
Interest capitalized to inventory | (4,977) | (5,662) |
Interest expensed | 354 | 718 |
Capitalized interest in beginning inventory | 22,053 | 26,397 |
Interest capitalized as a cost of inventory | 4,977 | 5,662 |
Previously capitalized interest included in cost of home and land sales | (4,027) | (6,146) |
Previously capitalized interest included in project abandonment costs | 0 | (761) |
Capitalized interest in ending inventory | 23,003 | 25,152 |
Capitalized interest in beginning investment in unconsolidated joint ventures | 0 | 541 |
Previously capitalized interest included in equity in net income (loss) of unconsolidated joint ventures | 0 | (448) |
Capitalized interest in ending investment in unconsolidated joint ventures | 0 | 93 |
Total capitalized interest in ending inventory and investments in unconsolidated joint ventures | $ 23,003 | $ 25,245 |
Capitalized interest as a percentage of inventory | 6.50% | 6.30% |
Interest included in cost of home sales as a percentage of home sales revenue | 4.20% | 6.50% |
Capitalized interest as a percentage of investment in unconsolidated joint ventures | 0.00% | 0.30% |
Note 6 - Investments in Uncon_3
Note 6 - Investments in Unconsolidated Joint Ventures (Details Textual) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | |
Equity Method Investment, Ownership Interests in Unconsolidated Joint Ventures | 9 | 9 | |||
Income (Loss) from Equity Method Investments, Total | $ 174 | $ (1,937) | |||
Revenue from Contract with Customer, Including Assessed Tax | 99,156 | 132,033 | |||
Management Service [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | $ 100 | 400 | |||
Unconsolidated Joint Ventures [Member] | |||||
Equity Method Investment, Ownership Percentage | 35.00% | ||||
Equity Method Investment, Other than Temporary Impairment | $ 0 | $ 20,000 | 2,300 | ||
Proceeds from Sale of Equity Method Investments | $ 5,100 | ||||
Income (Loss) from Equity Method Investments, Total | $ 4,500 | (2,200) | |||
Bedford [Member] | |||||
Equity Method Investment, Other than Temporary Impairment | $ 0 | $ 2,300 | |||
Minimum [Member] | Unconsolidated Joint Ventures [Member] | |||||
Equity Method Investment, Ownership Percentage | 10.00% | ||||
Maximum [Member] | Unconsolidated Joint Ventures [Member] | |||||
Equity Method Investment, Ownership Percentage | 50.00% |
Note 6 - Investments in Uncon_4
Note 6 - Investments in Unconsolidated Joint Ventures - Condensed Combined Financial Statements for Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Cash and cash equivalents | $ 114,815 | $ 87,863 | $ 107,279 | ||
Restricted Cash, Total | 230 | 424 | 180 | ||
Real estate inventories | 351,589 | 314,957 | |||
Other assets | 51,955 | 50,703 | |||
Total assets | 539,732 | 495,699 | |||
Total liabilities | 342,165 | 298,257 | |||
The New Home Company's equity(1) | 197,567 | 197,442 | |||
Total equity | 197,567 | 222,336 | 197,442 | $ 232,759 | |
Total liabilities and equity | 539,732 | 495,699 | |||
Revenues | 99,156 | 132,033 | |||
Net income of unconsolidated joint ventures | 201 | 1,362 | |||
Equity in net income (loss) of unconsolidated joint ventures reflected in the accompanying condensed consolidated statements of operations | 174 | (1,937) | |||
Gross margin | 16,111 | 11,667 | |||
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | |||||
Cash and cash equivalents | 15,539 | 16,709 | |||
Restricted Cash, Total | 250 | 611 | |||
Real estate inventories | 0 | 3,172 | |||
Other assets | 1,145 | 1,834 | |||
Total assets | 16,934 | 22,326 | |||
Accounts payable and accrued liabilities | 12,898 | 13,487 | |||
Notes Payable, Total | 0 | 0 | |||
Total liabilities | 12,898 | 13,487 | |||
The New Home Company's equity(1) | [1] | 903 | 2,107 | ||
Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance | 3,133 | 6,732 | |||
Total equity | 4,036 | 8,839 | |||
Total liabilities and equity | 16,934 | $ 22,326 | |||
Revenues | 5,353 | 31,647 | |||
Cost of sales and expenses | 5,152 | 30,285 | |||
Unconsolidated Joint Venture with More than 20 Percent Loss Allocation [Member] | |||||
Revenues | 504 | 4,624 | |||
Cost of sales and expenses | 0 | 3,065 | |||
Equity in net income (loss) of unconsolidated joint ventures reflected in the accompanying condensed consolidated statements of operations | [2] | 252 | (2,226) | ||
Gross margin | 504 | 1,559 | |||
Expenses | 0 | 961 | |||
Net income | $ 504 | $ 598 | |||
[1] | Balance represents the Company's interest, as reflected in the financial records of the respective joint ventures. | ||||
[2] | Balance represents equity in net income (loss) of unconsolidated joint ventures included in the statements of operations related to the Company's investment in the unconsolidated joint ventures. The balance may differ from the amount of profit or loss allocated to the Company as reflected in the respective joint venture's financial records primarily due to basis differences such as other-than-temporary impairment charges, interest capitalized to the Company's investment in joint ventures, and/or profit deferral from lot sales from the joint ventures to the Company. |
Note 7 - Other Assets (Details
Note 7 - Other Assets (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Depreciation, Capitalized Selling and Marketing Costs | $ 1,200 | $ 1,800 | |||
Income Tax Receivable, From CARES Act | $ 26,900 | 26,900 | |||
Insurance Settlements Receivable | [1] | 5,166 | 5,166 | $ 4,816 | |
Increase (Decrease) in Litigation Reserve | $ 400 | 400 | |||
Adjustment to Warranty Insurance Receivable | 200 | ||||
Proceeds from Insurance Settlement, Operating Activities | $ 100 | ||||
Construction Defect Claims [Member] | |||||
Insurance Settlements Receivable | 4,800 | ||||
Claim Specific Litigation Reserve [Member] | |||||
Insurance Settlements Receivable | 1,000 | ||||
IBNR Construction Defect Claims [Member] | |||||
Insurance Settlements Receivable | $ 3,800 | ||||
[1] | At December 31, 2020, the Company recorded insurance receivables of $4.8 million which was related to expected insurance reimbursements for $1.0 million in litigation reserves related to one claim and $3.8 million of IBNR litigation reserves. During the three months ended March 31, 2021, the claim-specific litigation reserve was increased by $0.4 million, all of which is expected to be reimbursed by insurance resulting in an increase of the same amount to insurance receivables. For more information, please refer to Note 8. |
Note 7 - Other Assets - Summary
Note 7 - Other Assets - Summary of Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Capitalized selling and marketing costs, net | [1] | $ 6,137 | $ 5,895 |
Prepaid income taxes | [2] | 27,349 | 27,866 |
Insurance receivable | [3] | 5,166 | 4,816 |
Warranty insurance receivable | [4] | 2,589 | 2,480 |
Prepaid expenses | 5,511 | 6,331 | |
Right-of-use lease assets | 2,886 | 2,997 | |
Goodwill | 2,000 | 0 | |
Other | 317 | 318 | |
Other assets | $ 51,955 | $ 50,703 | |
[1] | Capitalized selling and marketing costs includes costs incurred for tangible assets directly used in the sales process such as our sales offices, design studios and model furnishings, and also includes model landscaping costs. The Company depreciated $1.2 million and $1.8 million of capitalized selling and marketing costs to selling and marketing expenses during the three months ended March 31, 2021 and 2020, respectively. | ||
[2] | The amount at March 31, 2021 includes approximately $26.9 million of expected federal income tax refunds due to the Company for net operating loss carrybacks. | ||
[3] | At December 31, 2020, the Company recorded insurance receivables of $4.8 million which was related to expected insurance reimbursements for $1.0 million in litigation reserves related to one claim and $3.8 million of IBNR litigation reserves. During the three months ended March 31, 2021, the claim-specific litigation reserve was increased by $0.4 million, all of which is expected to be reimbursed by insurance resulting in an increase of the same amount to insurance receivables. For more information, please refer to Note 8. | ||
[4] | During the three months ended March 31, 2021, the Company adjusted its warranty insurance receivable upward by $0.2 million to true-up the receivable to its estimate of qualifying reimbursable expenditures as a result of an increase of the same amount to its warranty reserve. Also during the 2021 first quarter, the company received $0.1 million in insurance reimbursements for warranty claims. |
Note 8 - Accrued Expenses and_3
Note 8 - Accrued Expenses and Other Liabilities (Details Textual) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Standard Product Warranty Accrual, Estimated Recoveries From Insurance Policies | $ 2.6 | $ 2.6 | $ 2.5 |
Estimated Litigation Liability | 6.4 | 6.4 | |
Increase (Decrease) in Litigation Reserve | 0.4 | 0.4 | |
The Epic Acquisition [Member] | |||
Standard Product Warranty Accrual, Additions from Business Acquisition | 0.2 | ||
Home Building Segment [Member] | |||
Standard Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties | 0.2 | ||
Construction Defect Claims [Member] | |||
Estimated Litigation Liability | 5.6 | ||
Claim Specific Litigation Reserve [Member] | |||
Estimated Litigation Liability | 1 | ||
IBNR Construction Defect Claims [Member] | |||
Estimated Litigation Liability | $ 0.4 | $ 0.4 | $ 4.6 |
Note 8 - Accrued Expenses and_4
Note 8 - Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | |
Warranty accrual (1) | $ 7,438 | $ 6,864 | ||
Estimated Litigation Liability | 6,400 | |||
Operating Lease, Liability, Total | [1] | 3,112 | ||
Accrued Liabilities and Other Liabilities, Total | 44,904 | $ 36,210 | ||
Accrued Liabilities and Other Liabilities [Member] | ||||
Warranty accrual (1) | [2] | 7,438 | 7,276 | |
Estimated Litigation Liability | [3] | 6,434 | 5,641 | |
Accrued interest | 8,782 | 3,172 | ||
Accrued compensation and benefits | 3,191 | 7,106 | ||
Completion reserve | 4,575 | 5,683 | ||
Customer deposits | 7,834 | 2,898 | ||
Operating Lease, Liability, Total | 3,112 | 3,180 | ||
Other accrued expenses | $ 3,538 | $ 1,254 | ||
[1] | The weighted average remaining lease term and weighted average incremental borrowing rate used in calculating our lease liabilities were 3.4 years and 5.0%, respectively at September 30, 2020. | |||
[2] | Included in the amount at March 31, 2021 and December 31, 2020 is approximately $2.6 million and $2.5 million, respectively, of warranty liabilities estimated to be recovered by our insurance policies. | |||
[3] | At December 31, 2020, litigation reserves of $5.6 million was recorded related to construction defect claim reserves which consisted of $1.0 million for a claim-specific reserve and $4.6 million for IBNR construction defect claims. During the 2021 first quarter, the Company increased its claim-specific reserve by $0.4 million and recorded estimated insurance receivables of the same amount as the self-insured retention deductible has been met for this claim. Also during the three months ended March 31, 2021, the Company recorded $0.4 million of additional IBNR reserves within litigation reserves. |
Note 8 - Accrued Expenses and_5
Note 8 - Accrued Expenses and Other Liabilities - Changes in Warranty Accrual (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Ending warranty accrual | $ 7,438 | $ 6,864 | |
Home Building Segment [Member] | |||
Beginning warranty accrual | 7,269 | 7,195 | |
Warranty provision | 465 | 421 | |
Warranty payments | (706) | (780) | |
Adjustment to warranty accrual | [1] | 403 | 0 |
Ending warranty accrual | 7,431 | 6,836 | |
Fee Building Segment [Member] | |||
Beginning warranty accrual | 7 | 28 | |
Warranty provision | 0 | 0 | |
Warranty payments | 0 | 0 | |
Ending warranty accrual | $ 7 | $ 28 | |
[1] | During the three months ended March 31, 2021, the Company recorded an adjustment of $0.2 million to increase its warranty accrual for homebuilding projects. The Company also recorded a corresponding increase of the same amount to its warranty insurance receivable included in other assets in the condensed consolidated balance sheets at March 31, 2021. The adjustment for the three months ended March 31, 2021 also includes $0.2 million of warranty reserves related to the Epic Acquisition. |
Note 9 - Senior Notes and Uns_3
Note 9 - Senior Notes and Unsecured Revolving Credit Facility (Details Textual) - USD ($) | Feb. 26, 2021 | Oct. 30, 2020 | Oct. 28, 2020 | Apr. 15, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Oct. 14, 2022 | Feb. 24, 2021 | Dec. 31, 2020 | May 04, 2017 | Mar. 17, 2017 |
Early Repayment of Senior Debt | $ 0 | $ 4,827,000 | |||||||||
Gain (Loss) on Extinguishment of Debt, Total | 0 | (123,000) | |||||||||
Proceeds from Paycheck Protection Program Under CARES Act | $ 7,000,000 | ||||||||||
Repayments of Notes Payable | 23,848,000 | 0 | |||||||||
The Epic Acquisition [Member] | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | $ 24,100,000 | ||||||||||
Revolving Credit Facility [Member] | |||||||||||
Long-term Line of Credit, Total | $ 0 | $ 0 | |||||||||
New Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.00% | ||||||||||
Debt Issuance Costs, Net, Total | $ 1,300,000 | 1,500,000 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 60,000,000 | ||||||||||
Aggregate Maximum Borrowing Capacity | 100,000,000 | ||||||||||
Debt Instrument, Covenant, Minimum Consolidated Tangible Net Worth | $ 150,000,000 | ||||||||||
Debt Instrument, Covenant, Percentage of Cumulative Consolidated Net Income Per Quarter | 50.00% | ||||||||||
Debt Instrument, Covenant, Minimum Liquidity | $ 10,000,000 | ||||||||||
Long-term Line of Credit, Total | 0 | ||||||||||
New Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | |||||||||||
Debt Instrument, Covenant, Net Leverage Ratio | 60.00% | ||||||||||
Debt Instrument, Covenant, Interest Coverage Ratio | 1.75 | ||||||||||
New Credit Agreement [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | ||||||||||
New Credit Agreement [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | ||||||||||
New Credit Agreement [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | ||||||||||
New Credit Agreement [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | ||||||||||
New Credit Agreement [Member] | Letter of Credit [Member] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | ||||||||||
Letters of Credit Outstanding, Amount | 0 | $ 0 | |||||||||
Epic Companies Indebtness [Member] | The Epic Acquisition [Member] | |||||||||||
Notes Payable, Total | 24,100,000 | ||||||||||
Repayments of Notes Payable | 23,800,000 | 23,800,000 | |||||||||
Paycheck Protection Program CARES Act [Member] | |||||||||||
Extinguishment of Debt, Amount | $ 280,000 | ||||||||||
Paycheck Protection Program CARES Act [Member] | The Epic Acquisition [Member] | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | $ 300,000 | ||||||||||
Senior Notes [Member] | Senior Notes Due 2022 [Member] | |||||||||||
Debt Instrument, Face Amount | $ 250,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | ||||||||||
Percent of Debt Instrument Face Amount, Value Issued | 98.961% | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 7.50% | ||||||||||
Extinguishment of Debt, Amount | 4,800,000 | ||||||||||
Early Repayment of Senior Debt | 4,800,000 | ||||||||||
Gain (Loss) on Extinguishment of Debt, Total | 100,000 | ||||||||||
Write off of Deferred Debt Issuance Cost | $ 46,000 | ||||||||||
Senior Notes [Member] | Senior Notes Due 2022, Additional [Member] | |||||||||||
Debt Instrument, Face Amount | $ 75,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | ||||||||||
Percent of Debt Instrument Face Amount, Value Issued | 102.75% | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.438% | ||||||||||
Senior Notes [Member] | 7.25% Senior Notes Due 2025 [Member] | |||||||||||
Debt Instrument, Face Amount | $ 250,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 7.25% | 7.25% | ||||||||
Percent of Debt Instrument Face Amount, Value Issued | 100.00% | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 7.25% | ||||||||||
Debt Instrument, Redemption Price, Percentage | 101.813% | ||||||||||
Debt Issuance Costs, Net, Total | $ 5,100,000 | ||||||||||
DebtInstrument Exceptions To Limitation On Additional Indebtedness Maximum Borrowing Amount | $ 100,000,000 | ||||||||||
Percent Of Consolidated Tangible Assets General Basket Exception To Limitation For Restricted Payments To Be Made | 20.00% | ||||||||||
Percent of Consolidated Net Income, General Basket Limitation for Restricted Payments to be Made | 50.00% | ||||||||||
Percent of Net Cash Proceeds From Qualified Equity Offerings, General Basket Limitation for Restricted Payments to be Made | 100.00% | ||||||||||
Debt Instrument Exceptions To Restricted Payments Covenant Investments In Joint Ventures And Other Investments To Tangible Net Assets Percentage | 15.00% | ||||||||||
Debt Instrument Exceptions To Restricted Payments Covenant Maximum General Basket Amount | $ 15,000,000 | ||||||||||
Percent Of Consolidated Tangible Assets General Basket Exception To Limitation For Restricted Payments To Be Made, Covenant Maximum General Basket, Percent | 3.00% | ||||||||||
Debt Instrument, Conditions of Guarantee Release, Percentage of Tangible Assets Attributable to Immaterial Subsidiaries, Threshold for No Release | 5.00% | ||||||||||
Senior Notes [Member] | 7.25% Senior Notes Due 2025 [Member] | Forecast [Member] | |||||||||||
Percent of Debt Instrument Face Amount, Value Issued | 107.25% | ||||||||||
Senior Notes [Member] | 7.25% Senior Notes Due 2025 [Member] | Change in Control [Member] | |||||||||||
Percent of Debt Instrument Face Amount, Value Issued | 101.00% | ||||||||||
Senior Notes [Member] | 7.25 % Senior Notes Due 2025, Additional [Member] | |||||||||||
Debt Instrument, Face Amount | $ 35,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | ||||||||||
Percent of Debt Instrument Face Amount, Value Issued | 103.25% | ||||||||||
Debt Instrument, Interest Rate | 6.427% | ||||||||||
Debt Instrument, Unamortized Discount (Premium), Net, Total | $ (1,000,000) | ||||||||||
Debt Issuance Costs, Net, Total | $ 5,700,000 |
Note 9 - Senior Notes and Uns_4
Note 9 - Senior Notes and Unsecured Revolving Credit Facility - Indebtedness (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Senior Notes | $ 280,291 | $ 244,865 | |
Total Indebtedness | 280,291 | 244,865 | |
Revolving Credit Facility [Member] | |||
Long-term Line of Credit, Total | 0 | 0 | |
7.25% Senior Notes Due 2025 [Member] | Senior Notes [Member] | |||
Senior Notes | [1] | $ 280,291 | $ 244,865 |
[1] | The carrying value for the 2025 Notes, as presented at March 31, 2021, is net of unamortized premium of $1.0 million, and unamortized debt issuance costs of $5.7 million. The carrying value for the 2025 Notes, as presented at December 31, 2020, is net of unamortized debt issuance costs of $5.1 million. The unamortized unamortized premium and debt issuance costs are not factored into the estimated fair value. |
Note 9 - Senior Notes and Uns_5
Note 9 - Senior Notes and Unsecured Revolving Credit Facility - Indebtedness (Details) (Parentheticals) | Mar. 31, 2021 | Dec. 31, 2020 | Oct. 28, 2020 |
7.25% Senior Notes Due 2025 [Member] | Senior Notes [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 7.25% | 7.25% |
Note 9 - Senior Notes and Uns_6
Note 9 - Senior Notes and Unsecured Revolving Credit Facility - Redemption Prices (Details) - 7.25% Senior Notes Due 2025 [Member] - Senior Notes [Member] | Oct. 28, 2020 | Mar. 31, 2021 |
Redemption Price | 101.813% | |
Year 2022 [Member] | ||
Redemption Price | 103.625% | |
Year 2023 [Member] | ||
Redemption Price | 101.813% | |
Year 2024 [Member] | ||
Redemption Price | 100.00% |
Note 10 - Fair Value Disclosu_3
Note 10 - Fair Value Disclosures (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | |
Unconsolidated Joint Ventures [Member] | ||||
Equity Method Investment, Other than Temporary Impairment | $ 0 | $ 20,000 | $ 2,300 | |
Senior Notes [Member] | 7.25 % Senior Notes Due 2025, Additional [Member] | ||||
Debt Instrument, Unamortized Discount (Premium), Net, Total | (1,000) | |||
Debt Issuance Costs, Net, Total | $ 5,700 | |||
Senior Notes [Member] | 7.25% Senior Notes Due 2025 [Member] | ||||
Debt Issuance Costs, Net, Total | $ 5,100 |
Note 10 - Fair Value Disclosu_4
Note 10 - Fair Value Disclosures - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Senior notes, net | $ 280,291 | $ 244,865 | |
Senior Notes [Member] | 7.25% Senior Notes Due 2025 [Member] | |||
Senior notes, net | [1] | 280,291 | 244,865 |
Senior Notes, fair value | [1] | $ 296,400 | $ 256,875 |
[1] | The carrying value for the 2025 Notes, as presented at March 31, 2021, is net of unamortized premium of $1.0 million, and unamortized debt issuance costs of $5.7 million. The carrying value for the 2025 Notes, as presented at December 31, 2020, is net of unamortized debt issuance costs of $5.1 million. The unamortized unamortized premium and debt issuance costs are not factored into the estimated fair value. |
Note 10 - Fair Value Disclosu_5
Note 10 - Fair Value Disclosures - Fair Value of Financial Instruments (Details) (Parentheticals) | Mar. 31, 2021 | Dec. 31, 2020 | Oct. 28, 2020 |
Senior Notes [Member] | 7.25% Senior Notes Due 2025 [Member] | |||
Interest rate | 7.25% | 7.25% | 7.25% |
Note 11 - Commitments and Con_3
Note 11 - Commitments and Contingencies (Details Textual) - USD ($) | Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Estimated Litigation Liability | $ 6,400,000 | $ 6,400,000 | |||
Increase (Decrease) in Litigation Reserve | 400,000 | 400,000 | |||
Insurance Settlements Receivable | [1] | 5,166,000 | 5,166,000 | $ 4,816,000 | |
Increase (Decrease) in Insurance Settlements Receivable | 400,000 | ||||
Operating Lease, Right-of-Use Asset | 2,886,000 | 2,886,000 | 2,997,000 | ||
Operating Lease, Liability, Total | [2] | $ 3,112,000 | 3,112,000 | ||
Short-term Lease, Cost | 0 | $ 100,000 | |||
Sublease Income | $ 61,000 | $ 59,000 | |||
Operating Lease, Weighted Average Remaining Lease Term (Year) | 3 years 10 months 24 days | 3 years 10 months 24 days | |||
Operating Lease, Weighted Average Discount Rate, Percent | 4.70% | 4.70% | |||
Accrued Liabilities and Other Liabilities [Member] | |||||
Estimated Litigation Liability | [3] | $ 6,434,000 | $ 6,434,000 | 5,641,000 | |
Operating Lease, Liability, Total | 3,112,000 | 3,112,000 | 3,180,000 | ||
Surety Bond [Member] | |||||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 43,900,000 | 43,900,000 | 44,000,000 | ||
Loss Contingency, Estimated Remaining Costs of Work to be Completed | 18,200,000 | 18,200,000 | 16,300,000 | ||
Construction Defect Claims [Member] | |||||
Estimated Litigation Liability | 5,600,000 | ||||
Insurance Settlements Receivable | 4,800,000 | ||||
Claim Specific Litigation Reserve [Member] | |||||
Estimated Litigation Liability | 1,000,000 | ||||
Insurance Settlements Receivable | 1,000,000 | ||||
IBNR Construction Defect Claims [Member] | |||||
Estimated Litigation Liability | $ 400,000 | $ 400,000 | 4,600,000 | ||
Insurance Settlements Receivable | $ 3,800,000 | ||||
[1] | At December 31, 2020, the Company recorded insurance receivables of $4.8 million which was related to expected insurance reimbursements for $1.0 million in litigation reserves related to one claim and $3.8 million of IBNR litigation reserves. During the three months ended March 31, 2021, the claim-specific litigation reserve was increased by $0.4 million, all of which is expected to be reimbursed by insurance resulting in an increase of the same amount to insurance receivables. For more information, please refer to Note 8. | ||||
[2] | The weighted average remaining lease term and weighted average incremental borrowing rate used in calculating our lease liabilities were 3.4 years and 5.0%, respectively at September 30, 2020. | ||||
[3] | At December 31, 2020, litigation reserves of $5.6 million was recorded related to construction defect claim reserves which consisted of $1.0 million for a claim-specific reserve and $4.6 million for IBNR construction defect claims. During the 2021 first quarter, the Company increased its claim-specific reserve by $0.4 million and recorded estimated insurance receivables of the same amount as the self-insured retention deductible has been met for this claim. Also during the three months ended March 31, 2021, the Company recorded $0.4 million of additional IBNR reserves within litigation reserves. |
Note 11 - Commitments and Con_4
Note 11 - Commitments and Contingencies - Lease Costs and Cash Flow Information for Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Lease costs included in general and administrative expenses | $ 260 | $ 311 | |
Lease costs included in real estate inventories | 63 | 97 | |
Lease costs included in selling and marketing expenses | 29 | 39 | |
Net lease cost (1) | [1] | 352 | 447 |
Lease cash flows (included in operating cash flows)(1) | [1] | $ 298 | $ 498 |
[1] | Amount does not include the cost of short-term leases with terms of less than one year which totaled approximately $0 and $0.1 million for the three months ended March 31, 2021and 2020, respectively, or the benefit from a sublease agreement of one of our office spaces which totaled approximately $61,000 and $59,000 for the three months ended March 31, 2021 and 2020, respectively. |
Note 11 - Commitments and Con_5
Note 11 - Commitments and Contingencies - Future Minimum Lease Payments Under Operating Leases (Details) $ in Thousands | Mar. 31, 2021USD ($) | |
Remaining for 2021 | $ 891 | |
2022 | 754 | |
2023 | 631 | |
2024 | 588 | |
2025 | 479 | |
Thereafter | 0 | |
Total lease payments(1) | 3,343 | [1] |
Less: Interest(2) | 231 | [2] |
Operating Lease, Liability, Total | $ 3,112 | [3] |
[1] | Lease payments include options to extend lease terms that are reasonably certain of being exercised. | |
[2] | Our leases do not provide a readily determinable implicit rate. Therefore, we utilized our incremental borrowing rate for such leases to determine the present value of lease payments at the lease commencement date. | |
[3] | The weighted average remaining lease term and weighted average incremental borrowing rate used in calculating our lease liabilities were 3.4 years and 5.0%, respectively at September 30, 2020. |
Note 12 - Related Party Trans_2
Note 12 - Related Party Transactions (Details Textual) - USD ($) | Mar. 01, 2020 | Jun. 26, 2019 | Jun. 26, 2015 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2018 |
Due from Affiliates | $ 53,000 | $ 102,000 | $ 53,000 | |||||||
Equity Method Investments | 903,000 | 2,107,000 | 903,000 | |||||||
Income (Loss) from Equity Method Investments, Total | 174,000 | $ (1,937,000) | ||||||||
Bedford 2 [Member] | ||||||||||
Equity Method Investment, Other than Temporary Impairment | 2,300,000 | |||||||||
Master Marketing Fees | 38,000 | $ 25,000 | ||||||||
Proceeds from Sale of Equity Method Investments | $ 5,100,000 | |||||||||
Joint Venture, Option Rights, Percentage | 30.00% | |||||||||
Unconsolidated Joint Ventures [Member] | ||||||||||
Equity Method Investment, Other than Temporary Impairment | 0 | $ 20,000,000 | $ 2,300,000 | |||||||
Income (Loss) from Equity Method Investments, Total | 4,500,000 | (2,200,000) | ||||||||
Proceeds from Sale of Equity Method Investments | $ 5,100,000 | |||||||||
Corporate Joint Venture [Member] | Construction-related Costs [Member] | ||||||||||
Related Party Transaction, Expenses from Transactions with Related Party | 200,000 | 1,200,000 | ||||||||
Due from Affiliates | 17,000 | 100,000 | 17,000 | |||||||
Corporate Joint Venture [Member] | Management Fees [Member] | ||||||||||
Due from Affiliates | 36,000 | 36,000 | $ 36,000 | |||||||
Revenue from Related Parties | $ 100,000 | $ 400,000 | ||||||||
Related Party [Member] | ||||||||||
Common Stock Beneficial Ownership Percentage, Significant Amount Threshold | 10.00% | 10.00% | ||||||||
TNHC Merdian Investors LLC, and TNHC Russel Ranch LLC [Member] | ||||||||||
Equity Method Investments | $ 100,000 | 100,000 | $ 100,000 | |||||||
TNHC-HW Cannery LLC [Member] | ||||||||||
Due from Affiliates | 0 | 0 | 0 | |||||||
Deferred Profit From Lot Transactions | 100,000 | 100,000 | 100,000 | |||||||
Consultant Davis [Member] | Monthly Consulting Fee [Member] | ||||||||||
Related Party Transaction, Amounts of Transaction | $ 1,000 | $ 5,000 | ||||||||
Accounts Payable, Related Parties | 0 | 0 | ||||||||
Consultant Redwitz [Member] | ||||||||||
Related Party Transaction, Amounts of Transaction | $ 5,000 | |||||||||
Consultant Redwitz [Member] | Monthly Consulting Fee [Member] | ||||||||||
Related Party Transaction, Amounts of Transaction | $ 10,000 | |||||||||
Accounts Payable, Related Parties | $ 0 | 0 | ||||||||
10% Common Stock Affiliate [Member] | Arizona Master Plan [Member] | ||||||||||
Purchase Options, Land | $ 3,800,000 | |||||||||
Percentage of Optioned Lots Taken Down | 24.00% | 0.00% | ||||||||
Deposits Assets | $ 100,000 | $ 200,000 | 100,000 | |||||||
Master Marketing Fees | 0 | $ 0 | $ 22,000 | |||||||
Bedford [Member] | ||||||||||
Master Marketing Fees | $ 0 | $ 9,000 |
Note 13 - Stock-based Compens_3
Note 13 - Stock-based Compensation (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | May 22, 2018 | May 24, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 3.8 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 1 month 6 days | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 1 year | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | ||
The 2014 Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Term (Year) | 10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 1,644,875 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 338 | ||
The 2016 Incentive Plan, Amended and Restated [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 2,100,000 | 800,000 | |
The 2016 Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 122,300 |
Note 13 - Stock-based Compens_4
Note 13 - Stock-based Compensation - Common Stock Option Activity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Common Stock Options Outstanding, number of shares (in shares) | 1,220,695 | 1,068,017 |
Common Stock Options Outstanding, weighted-average exercise price per share (in dollars per share) | $ 9.18 | $ 9.78 |
Common Stock Options Granted, number of shares (in shares) | 0 | 161,479 |
Common Stock Options Granted, weighted-average exercise price per share (in dollars per share) | $ 0 | $ 5.36 |
Common Stock Options Exercised, number of shares (in shares) | 0 | 0 |
Common Stock Options Exercised, weighted-average exercise price per share (in dollars per share) | $ 0 | $ 0 |
Common Stock Options Forfeited, number of shares (in shares) | 0 | 0 |
Common Stock Options Forfeited, weighted-average exercise price per share (in dollars per share) | $ 0 | $ 0 |
Common Stock Options Outstanding, number of shares (in shares) | 1,220,695 | 1,229,496 |
Common Stock Options Outstanding, weighted-average exercise price per share (in dollars per share) | $ 9.18 | $ 9.20 |
Common Stock Options Exercisable, number of shares (in shares) | 1,029,950 | 901,829 |
Common Stock Options Exercisable, weighted-average exercise price per share (in dollars per share) | $ 9.86 | $ 10.52 |
Note 13 - Stock-based Compens_5
Note 13 - Stock-based Compensation - Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restricted Stock Units Outstanding, number of shares (in shares) | 704,890 | 592,116 |
Restricted Stock Units Outstanding, weighted-average grant date fair value per share (in dollars per share) | $ 5.11 | $ 6.36 |
Restricted Stock Units Granted, number of shares (in shares) | 363,198 | 241,556 |
Restricted Stock Units Granted, weighted-average grant date fair value per share (in dollars per share) | $ 5.39 | $ 5.36 |
Restricted Stock Units Vested, number of shares (in shares) | (161,032) | (152,177) |
Restricted Stock Units Vested, weighted-average grant date fair value per share (in dollars per share) | $ 6.86 | $ 9.45 |
Restricted Stock Units Forfeited, number of shares (in shares) | 0 | (428) |
Restricted Stock Units Forfeited, weighted-average grant date fair value per share (in dollars per share) | $ 0 | $ 11.68 |
Restricted Stock Units Outstanding, number of shares (in shares) | 907,056 | 681,067 |
Restricted Stock Units Outstanding, weighted-average grant date fair value per share (in dollars per share) | $ 4.91 | $ 5.32 |
Note 13 - Stock-based Compens_6
Note 13 - Stock-based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Stock-based compensation expense | $ 645 | $ 589 |
Stock Options [Member] | ||
Stock-based compensation expense | 91 | 64 |
Restricted Stock Units and Performance Share Units [Member] | ||
Stock-based compensation expense | $ 554 | $ 525 |
Note 13 - Stock-based Compens_7
Note 13 - Stock-based Compensation - Valuation Assumptions for Common Stock Options Granted (Details) | 3 Months Ended |
Mar. 31, 2020$ / shares | |
Expected term (in years) (Year) | 6 years |
Expected volatility | 41.80% |
Risk-free interest rate | 1.40% |
Expected dividends | 0.00% |
Weighted-average grant date fair value per share (in dollars per share) | $ 2.24 |
Note 14 - Income Taxes (Details
Note 14 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Expense (Benefit), Total | $ 451 | $ (9,937) |
Tax Adjustments, Settlements, and Unusual Provisions | 300 | |
Income Tax Expense (Benefit), Discrete Tax Items | (8,100) | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount | 5,800 | |
Impairment of Long-Lived Assets to be Disposed of | $ 68 | 14,036 |
Income Tax Benefit, Cares Act | (2,100) | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ (2,100) |
Note 14 - Income Taxes - Compon
Note 14 - Income Taxes - Components of Deferred Income Tax Asset (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Net operating loss carryforwards | $ 5,808 | $ 5,808 |
Tax credit carryforwards | 2,479 | 2,401 |
Reserves and accruals | 2,877 | 2,870 |
Share based compensation | 1,512 | 1,441 |
Inventory | 2,663 | 3,142 |
Investments in joint ventures | 1,081 | 1,226 |
Other | 96 | 26 |
Depreciation and amortization | (655) | (653) |
Right-of-use lease asset | (804) | (814) |
Deferred tax asset, net | $ 15,057 | $ 15,447 |
Note 15 - Segment Information_2
Note 15 - Segment Information (Details Textual) $ in Millions | Feb. 26, 2021USD ($) | Mar. 31, 2021USD ($) |
Number of Reportable Segments | 4 | |
The Epic Acquisition [Member] | ||
Business Combination, Acquisition Related Costs | $ 1 | |
Home Building [Member] | Colorado 1 [Member] | ||
Cost, Purchase Accounting Adjustments | $ 0.3 | |
Home Building [Member] | Colorado 1 [Member] | The Epic Acquisition [Member] | ||
Business Combination, Acquisition Related Costs | 1 | |
Home Building [Member] | Colorado 1 [Member] | The Epic Acquisition [Member] | Tail Insurance Premiums [Member] | ||
Business Combination, Acquisition Related Costs | 0.8 | |
Home Building [Member] | Colorado 1 [Member] | The Epic Acquisition [Member] | Professional Fees [Member] | ||
Business Combination, Acquisition Related Costs | $ 0.2 | |
Home Building Segment [Member] | ||
Number of Reportable Segments | 3 |
Note 15 - Segment Information -
Note 15 - Segment Information - Financial Information Relating to Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | ||
Revenues | $ 99,156 | $ 132,033 | ||
Pretax income (loss) | 1,004 | (18,413) | ||
Total assets | 539,732 | $ 495,699 | ||
Corporate, Non-Segment [Member] | ||||
Total assets | 106,835 | 126,146 | ||
Home Building Segment [Member] | ||||
Total assets | 431,114 | 365,797 | ||
Fee Building Segment [Member] | ||||
Total assets | 1,783 | 3,756 | ||
California 1 [Member] | Home Building Segment [Member] | ||||
Total assets | 305,740 | 295,340 | ||
Arizona 1 [Member] | Home Building Segment [Member] | ||||
Total assets | 74,872 | 70,457 | ||
Colorado 1 [Member] | Home Building Segment [Member] | ||||
Total assets | 50,502 | $ 0 | ||
Home Building [Member] | ||||
Revenues | 93,855 | 95,659 | ||
Pretax income (loss) | 900 | (19,143) | ||
Home Building [Member] | California 1 [Member] | ||||
Revenues | 83,214 | 83,280 | ||
Pretax income (loss) | 3,887 | (4,451) | ||
Home Building [Member] | Arizona 1 [Member] | ||||
Revenues | 7,698 | 12,379 | ||
Pretax income (loss) | (1,623) | (14,692) | ||
Home Building [Member] | Colorado 1 [Member] | ||||
Revenues | 2,943 | 0 | ||
Pretax income (loss) | [1] | (1,364) | 0 | |
Land [Member] | ||||
Revenues | 0 | 147 | ||
Land [Member] | California 1 [Member] | ||||
Revenues | 0 | 147 | ||
Homebuilding and Land [Member] | ||||
Revenues | 93,855 | 95,806 | ||
Construction [Member] | ||||
Revenues | 5,301 | 36,227 | ||
Pretax income (loss) | $ 104 | $ 730 | ||
[1] | Includes $1.0 million of transaction costs, $0.8 million of which was tail insurance premiums and $0.2 million in professional fees, related to the acquisition of Epic Homes that were expensed currently in the period of acquisition. In addition, the Colorado pretax loss includes $0.3 million in additional cost of sales related to purchase accounting adjustments. |
Note 16 - Supplemental Disclo_3
Note 16 - Supplemental Disclosure of Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Interest paid, net of amounts capitalized | $ 0 | $ 0 |
Income taxes paid | 0 | 0 |
Assets acquired related to business combination, net of cash acquired | 33,326 | 0 |
Liabilities assumed and incurred related to business combination, net of $280 PPP loan forgiven | $ 33,046 | $ 0 |
Note 16 - Supplemental Disclo_4
Note 16 - Supplemental Disclosure of Cash Flow Information - Supplemental Cash Flow Information (Details) (Parentheticals) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Paycheck Protection Program CARES Act [Member] | |
PPP loan forgiven | $ 280 |