Annual report [Section 13 and 15(d), not S-K Item 405]

Segment Reporting

v3.25.0.1
Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company is engaged in the acquisition, development, and sale of homes and lots in multiple states across the country. The Company is managed by geographic location and each of the six geographic regions targets a wide range of buyer profiles including: first-time, move-up, and luxury homebuyers.
Management of the six geographic regions report to the Company’s CODMs, the Chief Executive Officer and Chief Operating Officer of the Company. The CODMs review the results of operations and assess segment performance using gross margin and pretax income (loss) as reported on the consolidated statement of operations under the same captions. The CODMs use these metrics to evaluate the performance of segment assets in deciding whether to allocate resources to each segment or other goals of the business, such as acquisitions. These metrics are also used in budget versus actual analyses to monitor results in assessing performance of the segment and in establishing compensation of certain employees. Accordingly, the Company has presented its operations for the following six reportable segments:
•Arizona
•California
•Colorado
•Florida
•Metro New York
•Texas
The Company has also identified the Corporate operations as a non-operating segment, as it serves to support the homebuilding operations through functional departments such as executive, finance, treasury, human resources, accounting, and legal. The majority of the corporate personnel and resources are primarily dedicated to activities relating to operations and are allocated based on each segment’s respective percentage of assets, revenue, and dedicated personnel. The accounting policies of the segments are consistent with those described in the summary of significant accounting policies.
The following tables summarize information by segment:
Year Ended December 31, 2024
Arizona California Colorado Florida Metro New York Texas Total Reportable Segments Corporate Consolidated Total
(dollars in thousands)
Revenue $ 403,550  $ 456,585  $ 54,256  $ 462,555  $ 4,475  $ 168,916  $ 1,550,337  $ —  $ 1,550,337 
Cost of sales 336,758  385,963  47,465  397,308  4,861  150,190  1,322,545  —  1,322,545 
Gross margin 66,792  70,622  6,791  65,247  (386) 18,726  227,792  —  227,792 
Sales and marketing expenses 36,779  16,976  3,604  27,105  558  13,167  98,189  —  98,189 
General and administrative expenses 15,105  21,658  5,465  20,534  1,998  15,222  79,982  22,162  102,144 
Other income (expense), net 778  (1,374) 28  492  206  (37) 93  (877) (784)
Pretax income (loss) $ 15,686  $ 30,614  $ (2,250) $ 18,100  $ (2,736) $ (9,700) $ 49,714  $ (23,039) $ 26,675 
Year Ended December 31, 2023
Arizona California Colorado Florida Metro New York Texas Total Reportable Segments Corporate Consolidated Total
(dollars in thousands)
Revenue $ 288,552  $ 439,939  $ 7,410  $ 468,210  $ 1,649  $ 4,187  $ 1,209,947  $ —  $ 1,209,947 
Cost of sales 237,553  364,190  6,634  381,021  1,673  3,902  994,973  —  994,973 
Gross margin 50,999  75,749  776  87,189  (24) 285  214,974  —  214,974 
Sales and marketing expenses 27,328  19,576  284  25,054  537  469  73,248  —  73,248 
General and administrative expenses 18,283  27,027  1,930  25,266  2,269  5,613  80,388  21,054  101,442 
Other income (expense), net 709  416  34  752  40  (193) 1,758  2,503  4,261 
Pretax income (loss) $ 6,097  $ 29,562  $ (1,404) $ 37,621  $ (2,790) $ (5,990) $ 63,096  $ (18,551) $ 44,545 
Year Ended December 31, 2022
Arizona California Colorado Florida Metro New York Texas Total Reportable Segments Corporate Consolidated Total
(dollars in thousands)
Revenue $ 317,160  $ 503,832  $ —  $ 474,779  $ 111,423  $ 39,255  $ 1,446,449  $ —  $ 1,446,449 
Cost of sales 254,641  370,170  —  400,291  101,529  32,894  1,159,525  —  1,159,525 
Gross margin 62,519  133,662  —  74,488  9,894  6,361  286,924  —  286,924 
Sales and marketing expenses 29,062  20,968  —  28,591  8,380  2,304  89,305  —  89,305 
General and administrative expenses 15,780  18,733  —  26,212  2,093  4,394  67,212  22,113  89,325 
Other income (expense), net 555  252  —  1,113  59  179  2,158  (9,387) (7,229)
Pretax income (loss) $ 18,232  $ 94,213  $ —  $ 20,798  $ (520) $ (158) $ 132,565  $ (31,500) $ 101,065 
Other income (expense), net includes income from forfeited customer deposits; costs from abandoned projects; gains or losses on disposals of fixed assets; and other insignificant activity.
The following table summarizes total assets by segment:
December 31,
2024 2023
(dollars in thousands)
Assets
Arizona $ 305,952  $ 336,424 
California 436,854  479,218 
Colorado 39,374  27,240 
Florida 414,790  425,154 
Metro New York 38,082  42,047 
Texas 378,569  60,255 
Total reportable segment assets 1,613,621  1,370,338 
Corporate 87,716  100,894 
Total assets $ 1,701,337  $ 1,471,232 
Included in the Corporate segment assets is cash and cash equivalents of $57.9 million and $65.2 million as of December 31, 2024 and 2023, respectively.
As of December 31, 2024, goodwill of $20.7 million, $47.9 million, and $87.0 million was allocated to the Arizona, Florida, and Texas segments, respectively. As of December 31, 2023, $20.7 million and $47.9 million was allocated to the Arizona and Florida segments, respectively.