NWHM - Earnings call transcript Q4 2018

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Operator

Greetings and welcome to The New Home Company's Fourth Quarter 2018 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. for Home Relations Investor Mackintosh, The Company. New Drew you. Thank

You may begin.

Drew Mackintosh

the to Good released Company's for are full available The section these earnings Investor the Documents Welcome of it's quarter XXXX. year conference results in company Home results the company's New morning. website detailing nwhm.com. and today, call. financial Relations the fourth of Earlier at

filings historical Annual made call, the most Reports would such forward-looking Before to other from undertakes remind in A not statements are begins, duty it's on made which Report on differ including cause company no certain could those in update this this of of I uncertainties. the the to with like Form statements factors in SEC, it's operating are important that recent in call risks forward-looking statements call. course materially XX-K are results the Form that made the course and these and forward-looking and involve to detailed The facts, during Quarterly are the everyone that actual that XX-Q. and risks uncertainties company's statements of discussion in

non-GAAP Miller, Officer; I call Financial SEC. the the on most with financial in be non-GAAP may Home website to to New and Chief will Larry. Leonard Executive with Hosting Operating filings President to be turn Chief Officer; is the over now today that, John Webb, Chief call Company's With accessed conference can Officer. comparable and GAAP Stephens, it's and Larry measures discussed measures Reconciliations call. these measures Additionally, prepared accordance financial the this in through The

Larry Webb

us I the provide then on give morning thoughts the our conditions, some will This call local numbers. and some will housing good today. market the more and and will on Drew company on provide Leonard color additional to John detail the high-level on everyone of market. state joining Thanks, morning,

In communities. affordable we our XXXX, for will reach more forward open we took it to prepared step questions. priced in implementing up another to strategy our remarks, Following buyers more

However, Southern as potential said, foreign environment contributed markets difficult the issues heightened decline reduced concerns resulted a home caution the These a in proved buyer part we due a That this and absorption of a driven factors Several be create slowdown of to combine company our our of buyers number of high drivers and in California which including market, prices challenge to a confidence degree rising for as whole. in have home quarter affordability quality fundamental continue sales the rates. to stock volatile our to industry exercised to XXXX in by the confidence interest in offerings. fourth a and our higher in and business market. the slower of the buyers rates,

pre-tax roughly impact recognize may at of we one-way accordingly. sale outlook adjusted the The million office conservative of assets. took Southern have and that we However, Northern contributed our X% joint our cumulative outlook continue California. charges in This in $XX impairment this charges total for to communities, of venture and development foreseeable California totaled future, or these two more

new loss capital these within believe allow more cash our While existing flow Re-deploy these markets turn quickly. actions we in to generate rate. us quarter, accelerated resulted us a for in and more through this at the significant should our a or communities

impairment outlook our us In more our addition has make charges, the compelled across changes to to business. conservative

preserve capital via with of the [ph] market our increased not can lots that adequate to with over making scrutiny or tows our we the agreement, way sure sellers the With down demand deal we environment. sense returns. if in pipeline makes cannot option take every of renegotiate this re-evaluating in further, controlled context are We underlying new generate if land XX%

We our we suppliers. are prices partners are sure the getting our and most to from competitive rebidding actively trade many projects make of

have increase quickly fourth Home were sales streamlined take significantly from demand to pace to in well and conditions November management are of to We quarter; to overhead possible. slight also forward. responded to December New difficult The is headcount we as linings as again, our we've be moving our from There environment. the saw organization cut light to but strength that steps are necessary These in the into silver expenses reduced slower ensure and market the company some of keep our internally current will team underlying a positioned experienced sequential and December January. our

of sense we XX% XXXX. season. end deliveries if start terms beginning XX% not increased and for versus more increased of to versus would coupled imply industry count on last into [ph]. dollar and economic year ongoing higher C-Block compared in positives so delay the quarter spring selling $XXX the to on been XXXX still homes XX% increased fourth These to shift community our Home XX% affordable product and for remain close later of to project And favorable have investor and as quarter a at million. unit, backlog gives our XXXX us our optimism to wholly backlog the are New construction quarter. These community the the backdrop encountered Total in value first head a scheduled some as basis some our of with in

market Leonard provide local Now over I'd it on turn to who'll color to more conditions. like

Leonard Miller

Thanks, morning Larry to on the and everyone good call.

fourth buyers period for quarter were what during quarter Larry mentioned, caution higher orders the for a a fourth conditions as XXXX we prior year. XX% to across of degree already decently As compared challenging slow potential is in our sales new industry. Net experienced down the exercised markets our as the

for tough of compared fourth community prior in unseasonably quarter an the community. Our monthly X.X% absorption this X.X% year was sales rate to comparison per quarter per

in foreign activity. off driven pullback demand part in projects by concerns, a drop Southern as Our well in affordability buyer in a as California noticeable experienced

more not our segment as pool is portion large overall of come by. buyer sale each whole difficult buyers to this their a currently shrink business, making absence the While a of

hampered also by models. at number Northern quarter by driven sales fourth of same pushed our the community out saw which C-Block mentioned the are but into I opening not [ph] in delayed of also only the of earlier. Bay We demand our closings California, a In slowdown delays the construction significant Area some factors

price of decline companies, local in which Arizona of in more by Similar fourth buyers. likely dynamics was local with out in stock year points priced many Trends thereby market Sacramento the were purchasing quarter the played the $XXX,XXX. stable headwind impacted to sharp to the particularly relatively around power negatively end valuation Another tech of experienced our struggled higher the the traction as the buyers. gain diminishing market, the at community

come prices However, exposure will the with first we XXXX in $XXX,XXX. approximately new Gilbert scale have price an in are X believe several a to and the at our for a between give increase already new base communities XXXX starting communities of that Overall, price community currently stronger affordable seen developing well which these buyers. We $XXX,XXX. at have online $XXX,XXX market and at of appears half much of to and in thus in us deeper we needed we us bodes points should more pool far be recent aggregate market the in pickup at our sales activity Belmont average Phoenix as

to to I'd on more Now, like turn John numbers. for it the over detail

John Stephens

and you, Thank Leonard good morning.

fourth million corporate quarter impairments fourth XXXX. $XX.X share. with compared charge quarter, XXXX $XX.X tax the $X.XX income net related million or and fourth and or impairments the The to $X.X $X.X the inventory of $X.XX share also period. the fourth included loss joint in inventory to after for diluted quarter million a of of change XXXX tax diluted $XX net asset our rates per diluted $XXX,XXX For million XXXX enacted venture a net in impairments to the we prior in inventory of income The was quarter excluding joint share for connection venture $XX reported XXXX divert per compared million included of Adjusted XXXX or year. $X.XX of the revaluation impairments per tax income in

increase per of sales fourth for as and the or was XXXX low from compared multifamily Arizona adjusted construction imply $XX to revenue rates to of mess approximately The The was deliveries. of extent attributable net the delays was balance XX% $XXX end decline project revenues. million price largely in or the construction which to in mess in the prior offset year-over-year $X.XX our guidance. for share fourth guidance million compared year after down a partially and division which tax decline low $XXX to in by relative Vista[ph] X lesser selling and to to the The a Home the million quarter primarily condominium impairment fourth As charge. experienced our income XX% excluding in by end the in diluted $X represented quarter $XX.X delays a result average driven million the of XX% was approximately our at million million absorption sales revenue $XX our quarter. of was revenue Q- slower

to price $XXX,XXX. We average quarter our first approximately be expect selling

sales to Orange home California. margin and gross million inventory higher in related of the included was price $XX County GAAP for Our communities quarter fourth from X.X% two impairments

largely Irvine above Hills higher quarter, and mix higher to shift shift in decline was is our South XX.X% guidance in of was prior XX.X% to represent Orange the year incentives. XX that in The the only Excluding the margin to impaired to in Orange these $X note, County. unsold delivery during The impairments, product basis Two has communities communities fourth communities considerably. in gross luxury our lesser healthy lots County as that Orange positive due was point than previous other incentives and County interest at the extent remaining selling two margins are period. XXXX priced a gross slightly Orange gross to in high a fine a to with a are the the quarters and margin well our On costs a exposure is quarter County there Covenant Other few XXX and compared end fourth in mix selling community communities million. shrunk margins. that three remaining and market price due for primarily higher higher the as product in compared lower we

margin interest sales, gross ago compared Excluding in cost our year to for was quarter impairments XXXX and the home sales period. fourth the in XX.X% XX% from of

increase sales the lower higher in percentage sales revenue. X.X% a primarily $X as from Higher for personnel that drop Our XX% point as SG&A leverage fourth associated year. prior with These sales have quarter related of partially X.X% offset versus earlier, XXX basis rate, due count. were costs. in from which charge and was and will quarter mentioned items levels home decrease resulting Also, resulting in community adjustments a advertising million. commissions was The first revenue the we restructuring of home result organization lower absolute approximately a Co-broker made to our dollars compensation by of in staffing costs increased and G&A in Larry

quarter, of in to For the SG&A XXXX first low range. we our restructuring the charges inclusive be XX% expect rate

the expect first restructuring the Excluding charges, quarter our XX% high rate anticipated SG&A in we to range. be

by in share prior for from home $XX Our development quarter in we component venture. this by impairment JV exposure primarily driven land Russell and incorporate year $XX.X of anticipated would for development future as joint one location. a joint loss our California. will fourth the We of no reduce a venture was potential revenues investment a from activity venture our land preserve related that compared the million building pre-tax to to as to decision Ranch foregoing the was as building impairment quarter The joint in longer our a approximately land geographic within component, company that The million result $XXX,XXX loss of the period. existing Northern well home believe the XXXX sales lower income capital

joint share the XXXX income. first For of quarter, for our breakeven about venture we a projecting are

for compared $XX fourth a the year $XX was ago. building fee revenue million as million quarter Our to

or for period. year prior the million margin in X.X% the $X.X gross quarter Our or X.X% was fee building versus million $X

the We to fee the expected lower fourth represented demand ended expect XX lower over quarter to We XX% XXXX quarter. see building revenue with and XXXX active substantially production communities in increase levels due Irvine. fourth in which

inventories expect revolving XXXX We We by quarter year-end owned million $XX real in count XX%. million approximately under grow estate million million $XX including the cash, with ended outstanding wholly community credit million our facility. $XXX $XXX to our in and $XXX debt

the XXXX with and the common spent During $X.X Also, an ratio year to million. a net million quarter quarter debt shares $XXX the ended of stock of We during total of full million. $XX aggregate the XX%. on quarter we capital for repurchased we spent XXX,XXX approximately land of approximately for approximately

leverage our We year goal be end. expect first and being low range by to a highest and mid XX% with year quarter net decline the in XXXX second to of leverage of the then the

We scheduled land down year in the which expect should for under for increase to of million spend the leverage our million sales year also help just have XXXX liquidity. $XXX and $XX of middle bring approximately Land the our full

Now, first I'd quarter. regarding to provide guidance you like some XXXX additional with our

Larry and for between We million. sales and remarks. are now Fee million and of I'll revenue estimating call between $XX concluding margin $XX $XX million between home XX.X%. building of $XX the and home his sales turn of to gross XX.X% revenue back million

Larry Webb

of more to XXXX than we out fourth anticipated. Thanks, turned challenging quarter John. had conclusion, much In be the

Home despite a fourth backdrop remains markets for in New our that quarter demand [ph]. the soft fundamental stable were

optimistic we eventually this positioning the that company be that to it not. be we are prove While will prepared possibility softness are our is to temporary, for

taking options, our turn We projects right-size more to leverage. necessary all re-look structure, the improve and at our our steps land cost quickly are

experience of Our operating in now this demand our your take experience will well has will a and forward. I I leadership and to questions. environments concludes difficult remarks prepared wealth serve going team happy be That us believe

Operator

from with Scott first Our Citi. the comes question of line Schrier

Scott Schrier

to for whether gentlemen. your to and color potentially how conditions; look the in good you're to size picture sustained. morning right respect business the change be and market I I or on back with the Hi, big the all comments and want everything step preparing take more appreciate temporary

to best stock So, take you've been buying of back advantage a it's stock price. decent of chunk

You've and then deleveraging, strategy bit and we're about acquisition talked is addressing affordable your more know, little in markets. the you land high leverage growing a

you respect built these allocations, So where kind maybe those land if of want kind materialize you hoped; about do you thinking about don't in target of had are all if about aided get in that know leverage your land manner capital do the how some have in or [ph]? of sensitivity more little allocations just you cushion a just I I'm sale factors one thinking to So but some sells or about how things analysis slows And about think the buckets; bit I of land it? potential those thinking to there? by talked of different what I with capital discussed --

John Stephens

sort I'll kind of now flow. of chime-in. one number know generating cash take focused a shot sort on we're at our it and first Obviously, and is thing leverage let of Larry the you reducing

the taken scheduled want in for you the year. know land You the the know and quarter about think you million but into middle our quarter the right-sizing some know $XX I about we've talk of, first may we've overhead really sales Leonard and front of in fourth in of to terms made got we business steps cuts the of the

of possible quarter the did it land We've a going relates So actually the under buy the buyback under Most the than happens year fourth lot you million XX% in And balancing close some that's for less thought despite And been factored to the in paying quarter. these our on it into but this about in $XXX we quarter. control; option. relative at trading -- prior last attention to. to at sense terms of year currently targeted that levels something to year. We the It's money very impairments year. second of then made that this in we're under we're just having we've have third this in currently stock stock to obviously coming that in we that of year. that's auctions we lots spend that to quarter factored leverage, are third know

going land our will as book as forward and the we're down where balance generating focus much thought value to it we leverage sense bringing that acquisition going that some trading on than our made well do forward. but Our of cash we to with relative lower is

Larry Webb

know make of that, in hard for the do. programs and you strong one of that more been under strong large are this that at us land every illustrated addition, half we with are looking -- -- to of they option. second would will we has thing is land the marketplace. our given Scott, We've and our to is one that be sure those strengths our in market current mid proportion opportunities conditions sellers the locations part our large portion And XX% being I This right Larry. in through say year. believe of of relationship Internally by there

So you a that's on positive in now ourselves positioning where we're a -- business you going and moving we're our in know leverage way. forward. know strip and flow cash running we're and confident that right focused really We're

Scott Schrier

Great, thanks for that.

For re-evaluating and question re-biding on my on follow a purchase up, just the your land strategy. comments

a talk have -- thinking options respect underwriting we're Is of lining relationships bit Is that land there a land prices in can bit of whether how Is with competition some with to with good structures understand take are you little seeing or there the down to I'm I them. sellers? those community respective size a criteria and the little respect land market? elaborate You do the the easing that here? easing?

Larry Webb

is is get. if land you reality in Phoenix The the deal listened deal in ever last and I every guess yes. people, [ph] bring is your answer to easy deck they'll The California particular, too, they

easing. would say yes is I they So

seen competitive we're that and always the land have We in in that's reality. a markets will already ourselves be but

Leonard Miller

is Hi, little bit. a Leonard. I'll add this

market be and so competitive where favored I don't a nationally relieve by you're market most highly any seeing it's looking Phoenix to there. competitive I seems land have depends think for think you it the it's very it market. everybody still very, In

you're I about couple a think kind ways. it it of when talking categorized California

or thoughts[ph] it's are way I some all current a you both currently going builders If is market trying then have looking back to price. deal and whether in where you're on negotiate that diligence, that the at or think is into terms and based

really you selling have else reality a the deal and waiting the got to if the think hard-on, think land you've what and I what spring a is, is comes. is everybody seller but season I see then looking

southern paused today committing everybody days. the think been northern and land I many XX of there's more or for really so seeing looking I kind anybody is of environment in XX California and that's kind at So the think that you're not to last opportunity over

Larry Webb

The one mention other land. that Phoenix, in we point pipeline great that we and should I thought of have is a

building know be -- and from You its $XXX $XXX we'll to land to and $XXX $XXX,XXX. homes it's

pipeline our So is strong.

XX X half the it's opportunities the a of the will and of bringing half this so We Phoenix we're year in environment well positioned that though XXXX. we're be have roughly And optimistic to competitive second area. communities about first quite on our even there in

Operator

Our the Maguire next comes Zelman question Thomas & from Associates. of line of

Thomas Maguire

tough Hey environment guys, a job here. nice navigating

the communities to those your book decision on the you and just land in of what impairments? to in close Can quarter. begin how the and impairment there first know about transpired you risk feel Just rest just future the more the broadly

John Stephens

know higher too morning on were higher did and -- we County. very, fourth Really the This light Yes, looked about of homes we've $X.X effect where communities hard took priced what I'd margin every at say lot million It's is a now think XX homes; we're very We've projects to the Stevens. They're a in $X softened sell. project at -- price is which we actually good the got we looked in and you of impairments in we've million there. to communities -- has price in point two left got community quarter XX making everything market Orange in Thomas. and the selling point. average John one a actually we I

that neighborhood higher is I priced again, joint higher but of into it upwards that think it already we that we down through that got million call really decided product building to we've to decision in we $XX again plan we're some selling conserves of home going do substantial one the and that of going business increase of is that we're other large community. and Orange about kind have work one to anywhere own that as to the takes component community impairment prepared there. which We we're that not the and amount the to of master houses price in and we selling that and of that on just building of an profit California venture and plan have that point. plan margins so bring a stated end after really obviously well within lots going the in joint the the and of We've thought then it XX to the then front. County half sold joint doing million communities balance we Northern the are where toXX XX venture, to a in continue created believe that South master the additionally $XX the venture the wholly the prices approvals wouldn't equity reduced lower remarks, on to the just far community pretty in The and I component got make best to was XX home convert of for we've not from going was so venture part date redesign put -- second density which start venture we've solid of And capital; that as to at

ventures I shape other in the we're joint positively good moving pretty forward and environment. looking we're in on real forward this think

Thomas Maguire

seeing of you the your you a us that? Larry, what that business change snap kind little could just know what with on that just comfortable expand -- fundamentals. buyer still of comment you're you now And and positive made Got right the the aside it, you thanks. Can we're and gets on that outlook then hesitancy just for

Larry Webb

Sure.

was when very research I and the before at and call on consumer home me market growth, and research demographic drivers; know building I who consumer look time an my business we background don't you on the got people into lot know the well all basic home a recovery. of runaway just which lack every overbuilding this by consumer driver spoken certainly availability States believe fundamental confidence a believe still building western land, a We overall, and I've in community. of lack that still is major really there. to there's spend of awful in in that job of the the United we For the attitudes there positive economist

job lack a and that rates a interest the But a you know is place on issue. believe growth California is the a have always and to The builder. have affordability that in you primarily, California challenge and We we back affordability in still a quarter the rising been of good pause -- good in a has know this housing. overall occurred slightly function positive we're particular of and that fourth people business I which that taking step be

Thomas Maguire

Larry. Thanks, helpful. Really

Operator

next Our Suisse. line comes of from question with [ph] Sam Credit

Unidentified Analyst

your comments level in this talk focus can are going into bit on about think we know, spend missed of where overall the have may you XXXX? that You also in how previous but you about go but terms spending? I to land as a little

John Stephens

And California, -- with you options and example, would going And makes California on another projecting. what up in in then I'd Northern minus. Inland plus going under I well. continuing what County. $XX for would million the be as Southern Southern that, California of some like is plus And in spending properties and the option land is that that probably or we're Vacaville $XXX we're there. of know, have, -- then million be say or lots you say, the $XX we I'd continuing said, Diego San have in options, to include Northern say levels we're and California is then, to to money up the we've of we're XX% Empire finishing and it's Yes, we're some spend, overall Orange Arizona we minus out million probably makes down, I know, probably our got some take just

Unidentified Analyst

regard what demand And to following you the would demand; pick other And things any then seen you have I start you with would for slowdown before to rate pickup up? in to looking guys decline? expect be happen mean the

Leonard Miller

demand I would hype what [ph] saw November like it bottomed out then we December, we with sequential in a consistent -- Yes, and say that and hearing lot think I improvement so you're builders saw in improvement in is, felt again in January. of sequential

traffic seemed it the significantly rate we've we rates quarter. stabilizing traffic that of seen of kind off saw kind really bounced the the that, of then lowering So that, pushed -- and up over online fourth

So -- month-over-month again, to XX improvement we're in days. the seeing XX last sequential

having feels at top. it's Now of is said that, but stabilizing the really it market are levels and like that off stabilized last year's

the that 'XX improvement, stabilize it seeing So that market continue to and to I again, think is again you we're be sequential market. are with know but thing comparisons tough for encouraging the first those half the going by year seeing

Operator

next the Management. comes question from line of Asset Our [indiscernible]

Unidentified Analyst

where they points you if if have in was different for percent up feel foreign in foreign sort buyers us of Thanks. are what for on question, the for And buyer how you and a the normally? wondering And following market? had more -- compete? fourth the percent that price in as you the maybe what you a bit little quarter, you I just market any then could I'm the to both give color are issue;

Larry Webb

Southern was year, specific. of primarily, and XX% be me and generations, last and pretty made the the little Sure. buyer half to of County principally, significantly XX% more that the a in Well, marketplace. general maybe Orange Chinese foreign And first is and more up In significantly. second reduced even let the topic but second large foreign certainly, a California Irvine, foreign buyer buyer buyer, group

really anticipation as or And any half and Leonard either Chinese to so us. by had Irvine a mentioned, literally left area XX ourselves we continued reduction for we minimal buyer John reduced I or reduction -- there. is in for impact year the last of Now positioning sell, the a in homes been think have that

a six foreign County has slightly really buyer that's than quarter. we where be buyer, Pakistani, in be but impacts large tech-oriented; the But but is that's than been over would else. five last Indian, still that the the fourth tends market Chinese, buyer housing different, In Area, had say X the volatility Orange market so to prevalent overall, the it and more foreign have well South programs. tends to anything a Bay never very I did or strong and that group more buyer that stock years

has have in buyer Company. Southern Home very on slowed really little will Chinese significantly the impact New California it So the but

Unidentified Analyst

a you. I color. thank that's Great, appreciate it great

Larry Webb

Sure.

Operator

next comes Housing line from Alex Our Barron with Center. the Research question of

Alex Barron

I though start with market, guys deliveries guess few maybe no yet. Arizona can had questions. a but backlog have I you pretty a nice the we

So why I'm any out average deliveries the for time there or as yet? homes what to figure these built trying hasn't been

Leonard Miller

been missed had have missed kind delay Alex, Leonard. the in April a successful part by foremost, more trending a going that and Really, around we happened referring the been really centered in the months of X and met of were they this a to couple housing sales months XX-month we second hoped timeline, to they And is market. all Two their has year. -- timing that deal we to labor towards home rate lots -- the really then our things; of starts and -- really in shortage things X first where built has that finish approximately would've really homes were first had of of at X the and are which last they delays with kind Belmont. to community that; the developers to to of

So forward delivering of struggling time cycle flow this know have that people and of to started first is get our market down. Belmont. out delivering Arizona year, started even seeing we going are goal in in homes homes January of that and we the we I more an lot delivering start but should a and our with of

Alex Barron

you get in for to positively? again? question My California. communities you given to price guess to great that's the see Okay, starting buyers some sales hear. starting impaired you with the Are whatever that guys respond there? I regards second to Southern is Are

Leonard Miller

was we the to like one during this would the John looked we've at little priced mentioned, a quarter, Woods; I we sold market, and homes right one, so XX the asset, out higher. Mary was went basically with last say Alex, really lots and the obviously we bit that something the feel at the XX the over pricing fourth that looked wish the of and really Yes. dealt X days we found each first we've

new Topaz going the Orange kind moving second South it's that we're master [ph] point probably of sell get that we've and then XX highest plan, second adjustments to one. before yes, it's a we XX I left we've of price Again, go going so pretty sales to segment. feel in was XX on okay we made the I average So work way County; addressed I the going forward in month before -- sell of -- have to those going we forward. which product. X.X the kind would it feel think one product to -- one it. about that good again, but through where think And to we or left our But be about will the

Alex Barron

to more, great quarter? was to going hear this could I fee you say building the above next breakeven hear. that If be ask I did correctly Okay, business one

John Stephens

income. the I said venture joint

So breakeven, joint is be about venture a said. going income is what to I

Alex Barron

misheard. so Thank much. I Okay, you

John Stephens

You're welcome.

Operator

with Scott Schrier follow-up of next Our Instructions] a is question [Operator the line Citi. from

Scott Schrier

foreign going to to but Sam's of with the trends tax uncertainty of out. little and pulling fire wanted bit, back a terms market I is question one of go lines buyers in the activity, California how respect back demand to weakened reform outside put shake to factors into rates, Hi, buyers; interest on ultimately

You dynamic you know, can another color are think or any you on any of? their to urgencies, another on demand, the any one folks that's other -- tax ground, are out starting way returns; on I'm curious impact confidence how having traffic, whether or hearing do

Leonard Miller

foremost shot case. and we Scott, the get surprisingly, up I'd that. first our have is going calls this teams and with to Right I'll night be say we from Sunday Leonard, keep no. to reports every anticipating that's Every a weekly we take at that and community,

people be there that see got not than people bit buy I'm would we're we in so to is person, point those price research lower filed to We still impacted, say yet. is, later believe want homes. if survey it's most seeing but having February just certain market So is said early be it to what a would continue it that some impact that, that to I that first every homebuyer little guess I because not and would time probably that

but anticipate would we're it not I yet. So feeling impact some

John Stephens

that, to think Yes, impacted just probably higher I add are that and to I individuals the that it's earning that more. would be

it they communities as think folks because have in tax little going So property spending the to more have rate well. I taxes those and higher California, but where the that typically more certain high-income are of feel are money in you discretionary

entry the -- from -- much doesn't some of a as first think So, it's level I again folks probably benefit the Fed up are move the on I feel think sort getting those federal because it side. of

Operator

Thank you. turn back for concludes Webb floor final to the any question-and-answer comment. session Mr. our That I'll

Larry Webb

you. Thank

As have we've successful for quarter consistently that extremely for an times. and to management experienced been everyone have good team I want us in -- and re-emphasize fourth we stated, successful but we times both, tougher challenging was

on is home in everybody do our quarter some And to is flow and everything made the come. cash New I focused assure moving strong will on to years and improvement. viable factor focus industry leverage have many for We we making sure the moves that that that our sure in Company key our want and a pretty The forward fourth to Home make be building

your time you for So for I and your thank thank you questions. want to

Operator

teleconference. This concludes you. Thank today's

You may time. at your Thank participation. for you disconnect lines your this

New Home (NWHM) 15 Feb 192018 Q4 Earnings call transcript