Forward-Looking and Cautionary Statements
Investors are cautioned that certain statements contained in the materials and information posted to this webpage, as
well as some statements by us in relation to such materials and information, including at our 2022 Annual Meeting of
Stockholders, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of
1995 ("Act"). Statements that are predictive in nature, that depend upon or refer to future events or conditions, or
that include words such as "expect," "anticipate," "intend," "plan," "believe," "estimate," "hope," and similar
expressions constitute forward-looking statements. In addition, any statements that we may make or provide
concerning future financial or operating performance (including without limitation future revenues, community count,
homes delivered, net orders, selling prices, sales pace per new community, expenses, expense ratios, housing gross
profits, housing gross profit margins, earnings or earnings per share, or growth or growth rates), future market
conditions, future interest rates, and other economic conditions, ongoing business strategies or prospects, our
sustainability or our environmental, social and governance-related initiatives or goals, future dividends and
changes in dividend levels, the value of our backlog (including amounts that we expect to realize upon delivery of
homes included in our backlog and the timing of those deliveries), the value of our net orders, potential future
asset acquisitions and the impact of completed acquisitions, future share issuances or repurchases, future debt
issuances, repurchases or redemptions and other possible future actions are also forward-looking statements as
defined by the Act.
Forward-looking statements are based on our current (at the time made) expectations and projections about future
events and are subject to risks, uncertainties, and assumptions about our operations, economic and market factors,
and the homebuilding industry, among other things. These statements are not guarantees of future performance, and we
have do not have a specific policy or intent of updating or revising these statements. In addition, forward-looking
and other statements in this report and in other public or oral disclosures that express or contain opinions, views
or assumptions about market or economic conditions; the success, performance, effectiveness and/or relative
positioning of our strategies, initiatives or operational activities; and other matters, may be based in whole or in
part on general observations of our management, limited or anecdotal evidence and/or business or industry experience
without in-depth or any particular empirical investigation, inquiry or analysis.
Actual events and results may differ materially from those expressed or forecasted in forward-looking statements due
to a number of factors. The most important risk factors that could cause our actual performance and future events
and actions to differ materially from such forward-looking statements include, but are not limited to, the
following: general economic, employment and business conditions; population growth, household formations and
demographic trends; conditions in the capital, credit and financial markets; our ability to access external
financing sources and raise capital through the issuance of common stock, debt or other securities, and/or project
financing, on favorable terms; the execution of any securities repurchases pursuant to our board of directors’
authorization; material and trade costs and availability, including building materials and appliances; consumer and
producer price inflation; changes in interest rates; our debt level, including our ratio of debt to capital, and our
ability to adjust our debt level and maturity schedule; our compliance with the terms of our revolving credit
facility; volatility in the market price of our common stock; home selling prices, including our homes’
selling prices, increasing at a faster rate than consumer incomes; weak or declining consumer confidence, either
generally or specifically with respect to purchasing homes; competition from other sellers of new and resale homes;
weather events, significant natural disasters and other climate and environmental factors; any failure of lawmakers
to agree on a budget or appropriation legislation to fund the federal government’s operations, and financial
markets’ and businesses’ reactions to any such failure; government actions, policies, programs and
regulations directed at or affecting the housing market (including the tax benefits associated with purchasing and
owning a home, and the standards, fees and size limits applicable to the purchase or insuring of mortgage loans by
government-sponsored enterprises and government agencies), the homebuilding industry, or construction activities;
changes in existing tax laws or enacted corporate income tax rates, including those resulting from regulatory
guidance and interpretations issued with respect thereto; changes in U.S. trade policies, including the imposition
of tariffs and duties on homebuilding materials and products, and related trade disputes with and retaliatory
measures taken by other countries; the adoption of new or amended financial accounting standards and the guidance
and/or interpretations with respect thereto; the availability and cost of land in desirable areas and our ability to
timely develop acquired land parcels and open new home communities; our warranty claims experience with respect to
homes previously delivered and actual warranty costs incurred; costs and/or charges arising from regulatory
compliance requirements or from legal, arbitral or regulatory proceedings, investigations, claims or settlements,
including unfavorable outcomes in any such matters resulting in actual or potential monetary damage awards,
penalties, fines or other direct or indirect payments, or injunctions, consent decrees or other voluntary or
involuntary restrictions or adjustments to our business operations or practices that are beyond our current
expectations and/or accruals; our ability to use/realize the net deferred tax assets we have generated; our ability
to successfully implement our current and planned strategies and initiatives related to our product, geographic and
market positioning, gaining share and scale in our served markets and in entering into new markets; our operational
and investment concentration in markets in California; consumer interest in our new home communities and products,
particularly from first-time homebuyers and higher-income consumers; our ability to generate orders and convert our
backlog of orders to home deliveries and revenues, particularly in key markets in California; our ability to
successfully implement our business strategies and achieve any associated financial and operational targets and
objectives, including those discussed in the materials and information posted to this webpage, by us in relation to
such materials and information, including at our 2022 Annual Meeting of Stockholders, or in other public filings,
presentations or disclosures; income tax expense volatility associated with stock-based compensation; the ability of
our homebuyers to obtain residential mortgage loans and mortgage banking services; the performance of mortgage
lenders to our homebuyers; the performance of KBHS, our mortgage banking joint venture; information technology
failures and data security breaches; an epidemic or pandemic (such as the outbreak and worldwide spread of
COVID-19), and the control response measures that international, federal, state and local governments, agencies, law
enforcement and/or health authorities implement to address it, which may (as with COVID-19) precipitate or
exacerbate one or more of the above-mentioned and/or other risks, and significantly disrupt or prevent us from
operating our business in the ordinary course for an extended period; widespread protests and civil unrest, whether
due to political events, efforts to institute law enforcement and other social and political reforms, and the
impacts of implementing or failing to implement any such reforms, or otherwise; and other events outside of our
control.