Exhibit 99.1

Dream Finders Announces Fourth Quarter 2021 Earnings and Full Year 2021 Results

Pre-tax Income Increases 88% for Full Year 2021
 Total Company Revenues Increase 70% for Full Year 2021
 Largest Backlog in Company History Valued at Nearly $3 Billion
 
Jacksonville, Fla. – March 16, 2022 — Dream Finders Homes, Inc. (the “Company” or “DFH”) (NASDAQ: DFH), one of the nation’s fastest growing companies, announced financial results for the fourth quarter and full year ended December 31, 2021.
 
Fourth Quarter 2021 Highlights (As Compared to Fourth Quarter 2020)
 

•
Backlog of sold homes increased 163.2% to 6,381 homes valued at $2.9 billion, both Company records, compared to 2,424 homes valued at $865.1 million. McGuyer Homebuilders, Inc. (“MHI”), acquired on October 1, 2021, contributed 1,734 homes valued at $1.0 billion

•
Home building revenues increased 84.4% to $850.1 million from $461.0 million

•
Gross margin as a percentage of home sales revenues increased 60 basis points to 16.2% from 15.6%

•
Pre-tax income attributable to DFH increased 86.6% to $71.4 million, compared to $38.2 million

•
Average sales price of homes closed increased 28.4% to $440,939 from $343,305

•
Home closings increased 46.6% to 1,960 from 1,337 homes

•
Net new orders increased 42.3% to 1,974 from 1,387
 
Full Year 2021 Highlights (As Compared to Full Year 2020)
 

•
Home building revenues increased 70.0% to $1.9 billion from $1.1 billion

•
Gross margin as a percentage of home sales revenues increased 140 basis points to 16.0% from 14.6%

•
Pre-tax income attributable to DFH increased 87.9% to $148.6 million, compared to $79.1 million

•
Average sales price of homes closed increased 8.8% to $389,094 from $357,633

•
Home closings increased 54.5% to 4,874 from 3,154 homes

•
Net new orders increased 62.5% to 6,804 from 4,186

•
Active community count increased 62.7% to 205 from 126

•
Controlled lot pipeline increased 99.7% to 38,495 as of December 31, 2021, from 19,276 at December 31, 2020

•
Return on participating equity was 44.3% for the year ended December 31, 2021, compared to 47.0% for the year ended December 31, 2020
 
Acquisition of MHI
 
On October 1, 2021, the Company completed its acquisition of Texas based homebuilder, MHI. The acquisition allowed the Company to expand operations in the largest housing market in the U.S. It also provided DFH with a platform to capitalize on its land-light acquisition strategy and to achieve significant scale.
 
The following table shows MHI’s contribution to the Company for the fourth quarter of 2021:
 
Q4 2021 (unaudited)
  
Results and Operating Data (In thousands):
  
 Units:
      
Revenues
  
$
361,138
  
 Net new orders
    
579
  
Cost of sales
    
308,866
  
 Home closings
    
689
  
Gross margin
    
52,272
            
Gross margin %
    
14.5%

         
SG&A
    
29,755
            
SG&A % of revenue
    
8.2%

         
Net income
    
23,966
            
Net income %
    
6.6%

         
 
 Management Commentary
 
Patrick Zalupski, Dream Finders Homes Chairman and CEO, said, “We concluded the fourth quarter and full year 2021 with record results, achieving revenue growth of 85% and 70% respectively, despite the sustained, well-known industry-wide labor, material, and supply chain challenges that remain prevalent to date.  We closed 4,874 homes during the year, representing 33% organic growth. Overall growth was 55%, inclusive of the strategic MHI acquisition, which granted DFH immediate access to the robust Texas markets.  I am proud of our team and the effort they put forth that has allowed us to achieve an outstanding year.  I look forward to a great year of execution in 2022 and to sharing additional details in my upcoming shareholder letter.”
 
Fourth Quarter 2021 Results
 
Home building revenues for the fourth quarter 2021 increased 84.4% to $850.1 million, compared to $461.0 million in the same year-ago quarter. Home closings increased 46.6% to 1,960, compared to 1,337 in the same year-ago quarter. Average sales price (“ASP”) of homes closed for the fourth quarter 2021 was $440,939, compared to $343,305 in the same year-ago quarter, primarily due to home price appreciation and our acquisition of MHI, which contributed 689 closings to the fourth quarter at an ASP of $532,243.

Home building gross margin in the fourth quarter 2021 improved 60 basis points to 16.2%, compared to 15.6% in the same year-ago quarter. The increase in gross margin percentage was primarily attributable to home price appreciation outpacing cost inflation as well as lower cost of funds from the legacy operations offset by slightly lower margins on home closings contributed by MHI in the fourth quarter of 14.5%.
   
SG&A as a percent of home sales revenues was 7.2% in the fourth quarter 2021, compared to 7.5% in the same year-ago quarter, primarily as a result of economies of scale.
 
Net new orders in the fourth quarter 2021 increased 42.3% to 1,974, compared to 1,387 in the same year-ago quarter, primarily due to increased community count.  The cancellation rate remains within industry averages at 12.2% for the year ended December 31, 2021, down, when compared to 12.8% in the same year-ago period. At the end of the fourth quarter 2021, the Company had the largest backlog in Company history with 6,381 homes, valued at $2.9 billion, which represents record increases of 163.2% and 236.7%, respectively, when compared to the year ended December 31, 2020. The average sales price in backlog as of December 31, 2021, was $456,538.
 
Net income attributable to DFH in the fourth quarter of 2021 was $57.3 million, or $0.55 per diluted share, compared to net income of $38.2 million in the fourth quarter of 2020.
 
Full Year 2021 Commentary

For the twelve months ended December 31, 2021, the Company incurred certain non-recurring expenses and recorded other adjustments in relation to its business combinations that were not operational in nature, including:


 •
Transaction costs of $3.0 million in relation to its initial public offering

•
Transaction costs of $1.4 million related to the acquisition of businesses

•
Fair value adjustments from business combinations of $15.3 million, comprising contingent consideration revaluation of $7.5 million and inventory mark-up of $7.7 million

For the same year ended, the Company successfully compelled arbitration from a legal matter dating back to October of 2019 in Denver, CO and settled the matter during arbitration proceedings. The net impact to other expense was $7.5 million.

Other income related to the forgiveness of the Paycheck Protection Program grant for the year ended December 31, 2021 was $7.2 million.

The above non-operational items had a net impact of $19.9 million to pre-tax income. The after-tax effect to net income was a reduction of $16.2 million or 17.0 cents per diluted share.

Full Year 2022 Outlook
 
Dream Finders Homes expects a minimum of 7,000 home closings for the full year 2022 for the combined Company. Any further COVID-19 governmental restrictions on land development, home construction or home sales or additional supply chain challenges could negatively impact the Company’s ability to achieve this number of home closings in 2022.  As of December 31, 2021, the combined Company backlog was 6,381 homes, with approximately 10% of the homes in backlog expected to be delivered in 2023 and beyond.  The Company continues to believe the backlog of homes sold is the best indicator for future growth.  The following table shows the backlog units and ASP as of December 31, 2021 by segment:
 
   
As of December 31, 2021
(unaudited)
Backlog:
  
Units
    
Average Sales Price
Jacksonville
    
1,463
    
$
391,593
Colorado
    
133
    

537,906
Orlando
    
934
    

476,442
DC Metro
    
16
    

644,288
The Carolinas
    
1,231
    

330,087
Texas
    
1,734
    

598,517
Other (1)
    
870
    

424,123
Total
    
6,381
    
$
456,538
 

(1)
Austin, Savannah, Village Park Homes, Active Adult and Custom Homes. Austin refers to legacy DFH operations, exclusive of MHI.

About Dream Finders Homes, Inc.
 
Dream Finders Homes (NASDAQ: DFH) is based in Jacksonville, FL, and is one of the nation’s fastest growing homebuilding companies, with industry leading returns on shareholder’s equity. Dream Finders Homes builds homes in Florida, Texas, North Carolina, South Carolina, Georgia, Colorado, Virginia and Maryland. Dream Finders Homes achieves its industry leading growth and returns by maintaining an asset light homebuilding model. For more information, please visit www.dreamfindershomes.com.
 
Forward-Looking Statements
 
This press release includes forward-looking statements regarding future events, including projected 2022 home closings and market conditions and possible or assumed future results of operations, including statements regarding the Company’s strategies and expectations as they relate to market opportunities and growth. All forward-looking statements are based on Dream Finders Homes’ beliefs as well as assumptions made by and information currently available to Dream Finders Homes. These statements reflect Dream Finders Homes’ current views with respect to future events and are subject to various risks, uncertainties and assumptions. These risks, uncertainties and assumptions are discussed in Dream Finders Homes’ Annual Report on Form 10-K for the year ended December 31, 2021, and other filings with the U.S. Securities and Exchange Commission. Dream Finders Homes undertakes no obligation to update or revise any forward-looking statement except as may be required by applicable law.
 
Dream Finders Homes, Inc.
Consolidated Statements of Comprehensive Income and Operating Activity
(In thousands, except per share amounts)

 
  
For the Three Months Ended
December 31,
    
For the Twelve Months Ended
December 31,
  
   
2021
(Unaudited)
    
2020
(Unaudited)
      
2021 .
      
2020 .
  
Revenues
  
$
852,090
    
$
461,100
    
$
1,923,910
    
$
1,133,807
  
Cost of sales
    
712,319
      
387,244
      
1,610,332
      
962,928
  
Selling, general and administrative expense
    
61,045
       34,591
      
154,405
      
90,359
  
Income from equity in earnings of unconsolidated entities
    
(5,198
)
    
(3,148
)
    
(9,428
)
    
(7,992
)
Gain on sale of assets
    
(14
)
    
(65
)
    
(87
)
    
(118
)
Loss on extinguishment of debt
    
14
      
-
      
711
      
-
  
Other Income
    
-
      
-
      
-
      
-
  
Other
    
(827
)
    
(150
)
    
(7,827
)
    
(1,322
)
Paycheck Protection Program forgiveness
    
-
      
-
      
(7,220
)
    
-
  
Other Expense
    
-
      
-
      
-
      
-
  
Other
     7,560
      
216
      
12,771
      
3,188
  
Contingent consideration revaluation
    
1,771
      
1,491
      
7,533
      
1,379
  
Interest expense
    
0
      
747
      
672
      
871
  
Income before taxes
  
$
75,420
    
$
40,174
    
$
162,048
    
$
84,514
  
Income tax expense
    
(14,049
)
    
-
      
(27,455
)
    
-
  
Net and comprehensive income
  
$
61,371
    
$
40,174
    
$
134,593
    
$
84,514
  
Net and comprehensive income attributable to non-controlling interests
    
(4,068
)
    
(1,946
)
    
(13,461
)
    
(5,420
)
Net and comprehensive income attributable to Dream Finders Homes, Inc.
  
$
57,303
    
$
38,228
    
$
121,132
    
$
79,094
  
                                 
Earnings per share(5)
                                
Basic
  
$
0.58
    
$
-
    
$
1.27
    
$
-
  
Diluted
  
$
0.55
    
$
-
    
$
1.27
    
$
-
  
Weighted-average number of shares
                                
Basic
    
92,521
      
-
      
92,521
      
-
  
Diluted
    
103,297
      
-
      
95,314
      
-
  
                                 
Other Financial and Operating Data
                                
Active communities at end of period(1)
    
205
      
126
      
205
      
126
  
Home closings
    
1,960
      
1,337
      
4,874
      
3,154
  
Average sales price for closed homes(2)
  
$
440,939
    
$
343,305
    
$
389,094
    
$
357,633
  
Net new orders
    
1,974
      
1,387
      
6,804
      
4,186
  
Cancellation rate
    
13.1
%
    
12.9
%
    
12.2
%
    
12.8
%
Backlog (at period end) - homes
    
6,381
      
2,424
      
6,381
      
2,424
  
Backlog (at period end, in thousands) - value
  
$
2,913,170
    
$
865,109
    
$
2,913,170
    
$
865,109
  
Gross margin (in thousands)(3)
  
$
137,749
    
$
71,755
    
$
306,969
    
$
165,048
  
Gross margin %(4)
    
16.2
%
    
15.6
%
    
16.0
%
    
14.6
%
Net profit margin
    
6.7
%
    
8.3
%
    
6.3
%
    
7.0
%

(1) A community becomes active once the model is completed or the community has its fifth sale. A community becomes inactive when it has fewer than five units remaining to sell.
(2)  Average sales price of homes closed is calculated based on home sales revenue, excluding the impact of deposit forfeitures and percentage of completion revenues, over homes closed.
(3) Gross margin is home sales revenue less cost of sales. Gross margin includes commission expense.
(4) Calculated as a percentage of home sales revenues.
(5) The Company calculated earnings per share (“EPS”) based on net income attributable to common stockholders for the period January 21, 2021 through December 31, 2021 over the weighted average diluted shares outstanding for the same period. EPS was calculated prospectively for the period subsequent to the Company’s initial public offering and corporate reorganization, resulting in 92,521,482 shares of common stock outstanding as of the closing of the initial public offering. The total outstanding shares of common stock are made up of Class A common stock and Class B common stock, which participate equally in their ratable ownership share of the Company. Diluted shares were calculated by using the treasury stock method for stock grants and the if‐converted method for the convertible preferred stock and the associated preferred dividends.
 
   
Three Months Ended
December 31,
    
Twelve Months Ended
December 31,
  
   
2021
(unaudited)
    
2020
(unaudited)
    
2021
(unaudited)
    
2020
(unaudited)
  
   
Units
    
Average Sales
Price
    
Units 2
    
Average Sales
Price 2
    
Units 3
    
Average Sales
Price 3
    
Units 4
    
Average Sales
Price 4
  
Home Closings:
                                                
Jacksonville
    
372
    
$
397,731
      
520
    
$
311,550
      
1,237
    
$
363,755
      
1,395
    
$
318,134
  
Colorado
    
89
    

508,526
      
86
    

457,672
      
230
    

488,502
      
269
    

454,802
  
Orlando
    
173
    

394,962
      
149
    

360,323
      
604
    

404,035
      
355
    

356,168
  
DC Metro
    
49
    

682,334
      
84
    

547,710
      
140
    

667,780
      
232
    

545,887
  
The Carolinas
    
326
    

307,025
      
312
    

286,296
      
1,233
    

300,426
      
312
    

286,296
  
Texas
    
689
    

532,243
      
-
    

-
      
689
    

532,243
      
-
    

-
  
Other (1)
    
262
    

391,057
      
186
    

400,613
      
741
    

350,142
      
591
    

391,337
  
Total
    
1,960
    
$
440,939
      
1,337
    
$
343,305
      
4,874
    
$
389,094
      
3,154
    
$
357,633
  
 
 (1) Austin, Savannah, Village Park Homes, Active Adult and Custom Homes. Austin refers to legacy DFH operations, exclusive of MHI.

Dream Finders Homes, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)

   
December 31,
    
December 31,
  
   
2021
    
2020
  
Assets
            
Cash and cash equivalents
  
$
227,227
    
$
43,658
  
Restricted cash (VIE amounts of $2,855 and $8,793)
    
54,095
      
49,716
  
Accounts receivable (VIE amounts of $2,684 and $1,288)
    
33,482
      
16,766
  
Inventories:
                
Construction in process and finished homes
    
961,779
      
396,631
  
Joint venture owned land and lots
                
(VIE amounts of $20,708 and $40,901)
    
21,686
      
40,901
  
Company owned land and lots
    
83,197
      
46,840
  
Lot deposits
    
241,406
      
66,272
  
Equity method investments
    
15,967
      
4,545
  
Property and equipment, net
    
6,789
      
4,309
  
Operating lease right-of-use assets
    
19,359
      
14,219
  
Finance lease right-of-use assets
    
140
      
336
  
Intangible assets, net of amortization
    
9,140
      
2,660
  
Goodwill
    
171,927
      
28,566
  
Deferred tax asset
    
4,232
      
-
  
Other assets (VIE amounts of $1,289 and $1,288)
    
43,822
      
18,262
  
Total assets
  
$
1,894,248
    
$
733,680
  
Liabilities
                
Accounts payable (VIE amounts of $656 and $1,316)
  
$
113,498
    
$
37,419
  
Accrued expenses (VIE amounts of $7,284 and $9,977)
    
139,368
      
67,401
  
Customer deposits
    
177,685
      
59,392
  
Construction lines of credit
    
760,000
      
289,879
  
Notes payable (VIE amounts of $2,697 and $8,821)
    
3,291
      
29,653
  
Operating lease liabilities
    
19,826
      
14,411
  
Finance lease liabilities
    
140
      
345
  
Contingent consideration
    
124,056
      
23,158
  
Total liabilities
  
$
1,337,864
    
$
521,657
  
Commitments and contingencies
                
Mezzanine Equity
                
Preferred mezzanine equity
    
155,220
      
55,638
  
Common mezzanine equity
    
-
      
20,593
  
Total mezzanine equity
  
$
155,220
    
$
76,231
  
                 
Members' Equity
                
Common members' equity
    
-
      
103,853
  
Total members' equity
  
$
-
    
$
103,853
  
                 
Stockholders' Equity - Dream Finders Homes, Inc.
                
Class A common stock, $0.01 per share, 289,000
                
authorized, 32,295 outstanding
    
323
      
-
  
Class B common stock, $0.01 per share, 61,000
                
authorized, 60,226 outstanding
    
602
      
-
  
Additional paid-in capital
    
257,963
      
-
  
Retained earnings
    
118,194
      
-
  
Non-controlling interests
    
24,081
      
31,939
  
Total mezzanine equity, members' equity and stockholders' equity
    
556,383
      
212,023
  
Total liabilities, mezzanine equity, members' equity and stockholders' equity
  
$
1,894,248
    
$
733,680
  
 
Investor Contact: investors@dreamfindershomes.com 
Media Contact: mediainquiries@dreamfindershomes.com

Anabel Fernandez – Interim CFO & Senior Vice President
Robert Riva – General Counsel & Vice President

SOURCE: Dream Finders Homes, Inc.