Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.25.1
Segment Reporting
 3 Months Ended
Mar. 31, 2025
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 five geographic regions targets a wide range of buyer profiles including: first time, move-up, and luxury homebuyers.
Management of the five 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 as the following five reportable segments:
•Arizona
•California
•Colorado
•Florida
•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. 
Beginning in 2025, the Company concluded that our operations in Metro New York no longer meet the criteria to be classified as an operating segment. As a result, Metro New York is no longer included herein as a standalone reportable segment. The comparative periods have been recast with any Metro New York activity being incorporated into the corporate and other as a non-operating segment.
The following table summarizes total revenue and pretax income by segment:
Three Months Ended March 31, 2025
Arizona California Colorado Florida Texas Total Reportable Segments Corporate and Other Consolidated Total
(dollars in thousands)
Revenue $ 79,994  $ 58,671  $ 12,735  $ 111,269  $ 48,142  $ 310,811  $ —  $ 310,811 
Cost of sales 67,307  49,344  11,820  96,321  46,554  271,346  (103) 271,243 
Gross margin 12,687  9,327  915  14,948  1,588  39,465  103  39,568 
Sales and marketing expenses 8,297  2,973  982  7,340  4,300  23,892  60  23,952 
General and administrative expenses 4,656  5,138  1,741  6,330  4,925  22,790  4,023  26,813 
Other income (expense), net 125  (41) 4  146  53  287  1,013  1,300 
Pretax (loss) income $ (141) $ 1,175  $ (1,804) $ 1,424  $ (7,584) $ (6,930) $ (2,967) $ (9,897)
Three Months Ended March 31, 2024
Arizona California Colorado Florida Texas Total Reportable Segments Corporate and Other Consolidated Total
(dollars in thousands)
Revenue $ 79,485  $ 131,894  $ 8,854  $ 73,060  $ 748  $ 294,041  $ —  $ 294,041 
Cost of sales 66,844  112,294  7,760  62,972  710  250,580  —  250,580 
Gross margin 12,641  19,600  1,094  10,088  38  43,461  —  43,461 
Sales and marketing expenses 7,809  4,700  707  4,674  558  18,448  40  18,488 
General and administrative expenses 4,538  6,856  1,543  5,802  1,413  20,152  5,930  26,082 
Other income (expense), net 185  167  4  153  (3) 506  1,307  1,813 
Pretax income (loss) $ 479  $ 8,211  $ (1,152) $ (235) $ (1,936) $ 5,367  $ (4,663) $ 704 
Other income (expense), net includes income from forfeited customer deposits; costs from abandoned projects; gains or losses on disposals of fixed assets; mortgage and title revenue; and other insignificant activity.
The following table summarizes total assets by segment:
March 31, 2025 December 31, 2024
(dollars in thousands)
Assets
Arizona $ 313,020  $ 305,952 
California 446,758  436,854 
Colorado 44,752  39,374 
Florida 403,419  414,790 
Texas 368,242  378,569 
Total assets for reportable segments 1,576,191  1,575,539 
Corporate and other 106,191  125,798 
Total assets $ 1,682,382  $ 1,701,337 
Included in the corporate and other assets is cash and cash equivalents of $36.1 million and $57.9 million as of March 31, 2025 and December 31, 2024, respectively.
As of March 31, 2025 and 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.