Backlog decreased on a unit basis by 3% to 9,953 units, but increased on a dollar basis by 1% to $4,791.870 million when compared to December 31, 2023. This suggests a shift towards higher-priced homes in the backlog.

New orders, net of cancellations, during 2024 were 22,560, an increase of 4% from 2023. This modest increase suggests continued demand for new homes, but the market is still sensitive to economic uncertainty.

The company continues to primarily acquire finished lots through LPAs, which limits financial risk. As of December 31, 2024, the company controlled approximately 155,000 lots under LPAs.

Selling, general and administrative expenses decreased to 5.8% of revenue in 2024 from 6.3% in 2023. This indicates improved operational efficiency and cost management.

The decrease in backlog units was attributable to a higher backlog turnover rate year over year as the number of units settled exceeded New Orders year over year. This indicates improved efficiency in converting backlog to revenue.

While the company deviates from its historical lot acquisition strategy in certain circumstances, it continues to acquire substantially all of its finished lot inventory using LPAs with forfeitable deposits. This indicates a consistent and disciplined approach to managing risk.

The 10-K explicitly states that an economic downturn or decline in economic conditions could adversely affect the business and its results of operations. Demand for new homes is sensitive to economic changes.

The document highlights that high rates of inflation generally affect the homebuilding industry adversely because of their impact on interest rates and costs. High interest rates have a significant adverse effect on the affordability of mortgage financing.

The 10-K states that cybersecurity incidents affecting electronic and other confidential information could expose the company to liability and materially adversely affect its financial condition and results of operations.

The company acknowledges that the housing industry is highly competitive, with competition coming from numerous homebuilders of varying size and the home resale market. Success depends on price, location, design, quality, service, and reputation.

NVRM's main competition comes from national, regional, and local mortgage bankers, mortgage brokers, credit unions and banks in each of these markets. NVRM competes primarily on the basis of customer service, variety of products offered, interest rates offered, prices of ancillary services and relative financing availability and costs.

The company's homebuilding operations depend upon its continuing ability to control an adequate number of homebuilding lots in desirable locations. Any inability to secure and control an adequate inventory of lots could adversely impact operations.

The company's business model, which focuses on constructing homes primarily on a pre-sold basis and utilizing a conservative lot acquisition strategy, allows it to maximize inventory turnover and operate with less capital.

The company relies on subcontractors to construct its homes, and while it has quality control efforts, the failure of subcontractors to properly construct homes may be costly.

The company is dependent upon building material suppliers for a continuous flow of raw materials, and increased construction activity and demand for building materials could lead to supply chain disruptions.

The company has implemented systems and processes intended to secure its information technology systems and prevent unauthorized access to or loss of sensitive, confidential and personal data.

The CIO and CISO communicate directly with members of the Audit Committee and Board of Directors on cybersecurity matters, indicating a high level of focus and oversight.

Vulnerability management to help ensure security updates are effectively applied, which is a significant information technology process that has been implemented.

The company continues to use a substantial portion of its excess liquidity to repurchase outstanding shares of its common stock, indicating a focus on increasing shareholder value.

The company has never paid a cash dividend on its shares of common stock and has no current intention to do so in the future.

Capitalized interest is transferred to inventory as the development of finished lots is completed, then charged to cost of sales upon our settlement of homes and the respective lots.

The company is subject to a variety of local, state and federal statutes, ordinances, rules and regulations concerning the protection of health and the environment.

All of our employees must adhere to our code of ethics and standards of business conduct that sets standards for appropriate behavior in the workplace.

We are committed to continually developing an inclusive culture that attracts a diverse workforce and enables them to contribute to the success of the company by emphasizing their unique perspectives and backgrounds.

Demand for new homes is sensitive to economic changes driven by conditions such as employment levels, job growth, and consumer confidence.

We are subject to various local, state and federal statutes, ordinances, rules and regulations concerning the protection of health and the environment.

Our business and operations could be adversely affected by health epidemics, impacting the markets, states and local communities in which we operate.