accordingly , our management believes that these measures are useful for comparing general operating performance from period to period . other companies may define these measures differently and , as a result , our measures of ebitda and adjusted ebitda may not be directly comparable to the measures of other companies . although we use ebitda and adjusted ebitda as financial measures to assess the performance of our business , the use of these measures is limited because they do not include certain material costs , such as interest and taxes , necessary to operate our business . ebitda and adjusted ebitda should be considered in addition to , and not as a substitute for , net income in accordance with gaap as a measure of performance . our presentation of ebitda and adjusted ebitda should not be construed as an indication that our future results will be unaffected by unusual or non-recurring items . our use of ebitda and adjusted ebitda is limited as an analytical tool , and you should not consider these measures in isolation or as substitutes for analysis of our results as reported under gaap . please see “ —non-gaap measures ” for reconciliations of ebitda and adjusted ebitda to net income , which is the gaap financial measure that our management believes to be most directly comparable . 33 year ended december 31 , 2019 compared to year ended december 31 , 2018 homes sales . our home sales revenues , home closings , average sales price ( asp ) , average community count , average monthly absorption rate and closing community count by reportable segment for the years ended december 31 , 2019 and 2018 were as follows ( revenues in thousands ) : replace_table_token_6_th replace_table_token_7_th replace_table_token_8_th home sales revenues for the year ended december 31 , 2019 were $ 1,838.2 million , an increase of $ 333.8 million , or 22.2 % , from $ 1,504.4 million for the year ended december 31 , 2018 . the increase in home sales revenues is primarily due to an 18.1 % increase in homes closed and an increase in the average sales price per home during the year ended december 31 , 2019 as compared to the year ended december 31 , 2018 . we closed 7,690 homes during 2019 , as compared to 6,512 homes closed during 2018 . this increase in home closings was largely due to the increase in the number of active communities in 2019 . the average sales price per home closed during the year ended december 31 , 2019 was $ 239,032 , an increase of $ 8,012 , or 3.5 % , from the average sales price per home of $ 231,020 for the year ended december 31 , 2018 . this increase in the average sales price per home was primarily due to changes in product mix , higher price points in certain new markets and a favorable pricing environment . the increase in homes closed was largely due to our geographic expansion in the west reportable segment and deepening our presence within certain markets in the southeast reportable segment during the year ended december 31 , 2019 as compared to the year ended december 31 , 2018. we continued to diversify our operations outside of our central reportable segment during 2019 . we increased our home sales revenues in our reportable segments other than our central reportable segment by $ 232.5 million during the year ended december 31 , 2019 as compared to the year ended december 31 , 2018 , representing a 22.7 % increase in the number of homes closed in these reportable segments during 2019 as compared to 2018 . our active selling communities at december 31 , 2019 34 increased to 106 from 88 at december 31 , 2018 . seventeen of the eighteen active selling communities added during 2019 were outside of our central reportable segment , contributing to the further geographic diversification of our business . home sales revenues in our west reportable segment increased by $ 120.1 million , or 79.5 % , primarily due to an increase in community count associated with our continued geographic expansion into our california and nevada markets . home sales revenues in our southeast reportable segment increased by $ 76.7 million , or 28.3 % , during the year ended december 31 , 2019 as compared to the year ended december 31 , 2018 , primarily due to a 20.2 % increase in the number of homes closed in this reportable segment and partially due to increased community count stemming from the acquisition of wynn homes in 2018. all reportable segments added communities by expanding into new markets or deepening existing markets during the year ended december 31 , 2019. cost of sales and gross margin ( home sales revenues less cost of sales ) . cost of sales increased for the year ended december 31 , 2019 to $ 1,401.7 million , an increase of $ 277.2 million , or 24.7 % , from $ 1,124.5 million for the year ended december 31 , 2018 . this increase is primarily due to an 18.1 % increase in homes closed , higher lot costs recognized and , to a lesser extent , increased capitalized interest costs for homes closed during 2019 as compared to 2018 . gross margin for the year ended december 31 , 2019 was $ 436.5 million , an increase of $ 56.6 million , or 14.9 % , from $ 379.9 million for the year ended december 31 , 2018 . gross margin as a percentage of home sales revenues was 23.7 % for the year ended december 31 , 2019 and 25.3 % for the year ended december 31 , 2018 . story_separator_special_tag ( 2 ) cancellation rate for a period is the total number of purchase contracts cancelled during the period divided by the total new ( gross ) orders for the purchase of homes during the period . ( 3 ) ending backlog consists of homes at the end of the period that are under a purchase contract that has been signed by homebuyers who have met our preliminary financing criteria but have not yet closed and wholesale contracts for which the required deposit has been made . ending backlog is valued at the contract amount . ( 4 ) as of december 31 , 2019 , we have 481 units related to bulk sales agreements associated with our wholesale business , of which 117 units and values are not included in the table above . ( 5 ) as of december 31 , 2018 , we have 163 units related to bulk sales agreements associated with our wholesale business , of which 92 units and values are not included in the table above . ( 6 ) as of december 31 , 2017 , we have 149 units related to bulk sales agreements associated with our wholesale business , of which 106 units and values are not included in the table above . land acquisition policies and development see discussion included in “ business—land acquisition policies and development . ” homes in inventory see discussion included in “ business—homes in inventory . ” raw materials see discussion included in “ business—raw materials and labor . ” 40 seasonality in all of our reportable segments , we have historically experienced similar variability in our results of operations and in capital requirements from quarter to quarter due to the seasonal nature of the homebuilding industry . we generally close more homes in our second , third and fourth quarters . thus , our revenue may fluctuate on a quarterly basis and we may have higher capital requirements in our second , third and fourth quarters in order to maintain our inventory levels . our revenue and capital requirements are generally similar across our second , third and fourth quarters . as a result of seasonal activity , our quarterly results of operations and financial position at the end of a particular quarter , especially the first quarter , are not necessarily representative of the results we expect at year end . we expect this seasonal pattern to continue in the long term . liquidity and capital resources overview as of december 31 , 2019 , we had $ 38.3 million of cash and cash equivalents . cash flows for each of our active communities depend on the status of the development cycle and can differ substantially from reported earnings . early stages of development or expansion require significant cash outlays for land acquisitions , land development , plats , vertical development , construction of information centers , general landscaping and other amenities . because these costs are a component of our inventory and are not recognized in our statement of operations until a home closes , we incur significant cash outflows prior to recognition of home sales revenues . in the later stages of an active community , cash inflows may exceed home sales revenues reported for financial statement purposes , as the costs associated with home and land construction were previously incurred . our principal uses of capital are operating expenses , land and lot purchases , lot development , home construction , interest costs on our indebtedness and the payment of various liabilities . in addition , we may purchase land , lots , homes under construction or other assets as part of an acquisition . we generally rely on our ability to finance our operations by generating operating cash flows , borrowing under the credit agreement or the issuance and sale of shares of our common stock . as needed , we will consider accessing the debt and equity capital markets as part of our ongoing financing strategy . we also rely on our ability to obtain performance , payment and completion surety bonds as well as letters of credit to finance our projects . we have an effective shelf registration statement on form s-3 ( registration no . 333-227012 ) that was filed on august 24 , 2018 with the securities and exchange commission , registering the offering and sale of an indeterminate amount of debt securities , guarantees of debt securities , preferred stock , common stock , warrants , depositary shares , purchase contracts and units that include any of these securities . under the shelf registration statement , we have the ability to access the debt and equity capital markets as needed as part of our ongoing financing strategy . we believe that we will be able to fund our current and foreseeable liquidity needs for at least the next twelve months with our cash on hand , cash generated from operations , and cash expected to be available from the credit agreement or through accessing debt or equity capital , as needed . revolving credit facility on may 6 , 2019 , we entered into the credit agreement with several financial institutions and wells fargo bank , national association , as administrative agent . the credit agreement has substantially similar terms and provisions to our third amended and restated credit agreement entered into in may 2018 with several financial institutions and wells fargo bank , national association , as administrative agent ( the “ 2018 credit agreement ” ) , but , among other things , provides for a revolving credit facility of $ 550.0 million , which could be increased at our request by up to $ 100.0 million if the lenders make additional commitments , subject to the terms and conditions of the credit agreement ( which was requested in december 2019 ) . on december 6 , 2019 , we entered into a lender addition and acknowledgement agreement and first amendment

loss on extinguishment of debt . loss on extinguishment of debt was $ 0.2 million for the year ended december 31 , 2019 due to debt issuance costs previously capitalized that were associated with that certain fourth amended and restated credit agreement , dated as of may 6 , 2019 ( as amended , the “ credit agreement ” ) . loss on extinguishment of debt was $ 3.6 million for the year ended december 31 , 2018 due to debt issuance costs previously capitalized that were associated with our third amended and restated credit agreement , dated as of may 2018 ( the “ 2018 credit agreement ” ) . operating income , net income before income taxes , and net income . operating income for the year ended december 31 , 2019 was $ 227.5 million , an increase of $ 27.4 million , or 13.7 % , from $ 200.1 million for the year ended december 31 , 2018 . net income before income taxes for the year ended december 31 , 2019 was $ 231.8 million , an increase of $ 32.7 million , or 16.4 % , from $ 199.1 million for the year ended december 31 , 2018 .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```loss on extinguishment of debt . loss on extinguishment of debt was $ 0.2 million for the year ended december 31 , 2019 due to debt issuance costs previously capitalized that were associated with that certain fourth amended and restated credit agreement , dated as of may 6 , 2019 ( as amended , the “ credit agreement ” ) . loss on extinguishment of debt was $ 3.6 million for the year ended december 31 , 2018 due to debt issuance costs previously capitalized that were associated with our third amended and restated credit agreement , dated as of may 2018 ( the “ 2018 credit agreement ” ) . operating income , net income before income taxes , and net income . operating income for the year ended december 31 , 2019 was $ 227.5 million , an increase of $ 27.4 million , or 13.7 % , from $ 200.1 million for the year ended december 31 , 2018 . net income before income taxes for the year ended december 31 , 2019 was $ 231.8 million , an increase of $ 32.7 million , or 16.4 % , from $ 199.1 million for the year ended december 31 , 2018 .
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 Suspicious Activity Report : accordingly , our management believes that these measures are useful for comparing general operating performance from period to period . other companies may define these measures differently and , as a result , our measures of ebitda and adjusted ebitda may not be directly comparable to the measures of other companies . although we use ebitda and adjusted ebitda as financial measures to assess the performance of our business , the use of these measures is limited because they do not include certain material costs , such as interest and taxes , necessary to operate our business . ebitda and adjusted ebitda should be considered in addition to , and not as a substitute for , net income in accordance with gaap as a measure of performance . our presentation of ebitda and adjusted ebitda should not be construed as an indication that our future results will be unaffected by unusual or non-recurring items . our use of ebitda and adjusted ebitda is limited as an analytical tool , and you should not consider these measures in isolation or as substitutes for analysis of our results as reported under gaap . please see “ —non-gaap measures ” for reconciliations of ebitda and adjusted ebitda to net income , which is the gaap financial measure that our management believes to be most directly comparable . 33 year ended december 31 , 2019 compared to year ended december 31 , 2018 homes sales . our home sales revenues , home closings , average sales price ( asp ) , average community count , average monthly absorption rate and closing community count by reportable segment for the years ended december 31 , 2019 and 2018 were as follows ( revenues in thousands ) : replace_table_token_6_th replace_table_token_7_th replace_table_token_8_th home sales revenues for the year ended december 31 , 2019 were $ 1,838.2 million , an increase of $ 333.8 million , or 22.2 % , from $ 1,504.4 million for the year ended december 31 , 2018 . the increase in home sales revenues is primarily due to an 18.1 % increase in homes closed and an increase in the average sales price per home during the year ended december 31 , 2019 as compared to the year ended december 31 , 2018 . we closed 7,690 homes during 2019 , as compared to 6,512 homes closed during 2018 . this increase in home closings was largely due to the increase in the number of active communities in 2019 . the average sales price per home closed during the year ended december 31 , 2019 was $ 239,032 , an increase of $ 8,012 , or 3.5 % , from the average sales price per home of $ 231,020 for the year ended december 31 , 2018 . this increase in the average sales price per home was primarily due to changes in product mix , higher price points in certain new markets and a favorable pricing environment . the increase in homes closed was largely due to our geographic expansion in the west reportable segment and deepening our presence within certain markets in the southeast reportable segment during the year ended december 31 , 2019 as compared to the year ended december 31 , 2018. we continued to diversify our operations outside of our central reportable segment during 2019 . we increased our home sales revenues in our reportable segments other than our central reportable segment by $ 232.5 million during the year ended december 31 , 2019 as compared to the year ended december 31 , 2018 , representing a 22.7 % increase in the number of homes closed in these reportable segments during 2019 as compared to 2018 . our active selling communities at december 31 , 2019 34 increased to 106 from 88 at december 31 , 2018 . seventeen of the eighteen active selling communities added during 2019 were outside of our central reportable segment , contributing to the further geographic diversification of our business . home sales revenues in our west reportable segment increased by $ 120.1 million , or 79.5 % , primarily due to an increase in community count associated with our continued geographic expansion into our california and nevada markets . home sales revenues in our southeast reportable segment increased by $ 76.7 million , or 28.3 % , during the year ended december 31 , 2019 as compared to the year ended december 31 , 2018 , primarily due to a 20.2 % increase in the number of homes closed in this reportable segment and partially due to increased community count stemming from the acquisition of wynn homes in 2018. all reportable segments added communities by expanding into new markets or deepening existing markets during the year ended december 31 , 2019. cost of sales and gross margin ( home sales revenues less cost of sales ) . cost of sales increased for the year ended december 31 , 2019 to $ 1,401.7 million , an increase of $ 277.2 million , or 24.7 % , from $ 1,124.5 million for the year ended december 31 , 2018 . this increase is primarily due to an 18.1 % increase in homes closed , higher lot costs recognized and , to a lesser extent , increased capitalized interest costs for homes closed during 2019 as compared to 2018 . gross margin for the year ended december 31 , 2019 was $ 436.5 million , an increase of $ 56.6 million , or 14.9 % , from $ 379.9 million for the year ended december 31 , 2018 . gross margin as a percentage of home sales revenues was 23.7 % for the year ended december 31 , 2019 and 25.3 % for the year ended december 31 , 2018 . story_separator_special_tag ( 2 ) cancellation rate for a period is the total number of purchase contracts cancelled during the period divided by the total new ( gross ) orders for the purchase of homes during the period . ( 3 ) ending backlog consists of homes at the end of the period that are under a purchase contract that has been signed by homebuyers who have met our preliminary financing criteria but have not yet closed and wholesale contracts for which the required deposit has been made . ending backlog is valued at the contract amount . ( 4 ) as of december 31 , 2019 , we have 481 units related to bulk sales agreements associated with our wholesale business , of which 117 units and values are not included in the table above . ( 5 ) as of december 31 , 2018 , we have 163 units related to bulk sales agreements associated with our wholesale business , of which 92 units and values are not included in the table above . ( 6 ) as of december 31 , 2017 , we have 149 units related to bulk sales agreements associated with our wholesale business , of which 106 units and values are not included in the table above . land acquisition policies and development see discussion included in “ business—land acquisition policies and development . ” homes in inventory see discussion included in “ business—homes in inventory . ” raw materials see discussion included in “ business—raw materials and labor . ” 40 seasonality in all of our reportable segments , we have historically experienced similar variability in our results of operations and in capital requirements from quarter to quarter due to the seasonal nature of the homebuilding industry . we generally close more homes in our second , third and fourth quarters . thus , our revenue may fluctuate on a quarterly basis and we may have higher capital requirements in our second , third and fourth quarters in order to maintain our inventory levels . our revenue and capital requirements are generally similar across our second , third and fourth quarters . as a result of seasonal activity , our quarterly results of operations and financial position at the end of a particular quarter , especially the first quarter , are not necessarily representative of the results we expect at year end . we expect this seasonal pattern to continue in the long term . liquidity and capital resources overview as of december 31 , 2019 , we had $ 38.3 million of cash and cash equivalents . cash flows for each of our active communities depend on the status of the development cycle and can differ substantially from reported earnings . early stages of development or expansion require significant cash outlays for land acquisitions , land development , plats , vertical development , construction of information centers , general landscaping and other amenities . because these costs are a component of our inventory and are not recognized in our statement of operations until a home closes , we incur significant cash outflows prior to recognition of home sales revenues . in the later stages of an active community , cash inflows may exceed home sales revenues reported for financial statement purposes , as the costs associated with home and land construction were previously incurred . our principal uses of capital are operating expenses , land and lot purchases , lot development , home construction , interest costs on our indebtedness and the payment of various liabilities . in addition , we may purchase land , lots , homes under construction or other assets as part of an acquisition . we generally rely on our ability to finance our operations by generating operating cash flows , borrowing under the credit agreement or the issuance and sale of shares of our common stock . as needed , we will consider accessing the debt and equity capital markets as part of our ongoing financing strategy . we also rely on our ability to obtain performance , payment and completion surety bonds as well as letters of credit to finance our projects . we have an effective shelf registration statement on form s-3 ( registration no . 333-227012 ) that was filed on august 24 , 2018 with the securities and exchange commission , registering the offering and sale of an indeterminate amount of debt securities , guarantees of debt securities , preferred stock , common stock , warrants , depositary shares , purchase contracts and units that include any of these securities . under the shelf registration statement , we have the ability to access the debt and equity capital markets as needed as part of our ongoing financing strategy . we believe that we will be able to fund our current and foreseeable liquidity needs for at least the next twelve months with our cash on hand , cash generated from operations , and cash expected to be available from the credit agreement or through accessing debt or equity capital , as needed . revolving credit facility on may 6 , 2019 , we entered into the credit agreement with several financial institutions and wells fargo bank , national association , as administrative agent . the credit agreement has substantially similar terms and provisions to our third amended and restated credit agreement entered into in may 2018 with several financial institutions and wells fargo bank , national association , as administrative agent ( the “ 2018 credit agreement ” ) , but , among other things , provides for a revolving credit facility of $ 550.0 million , which could be increased at our request by up to $ 100.0 million if the lenders make additional commitments , subject to the terms and conditions of the credit agreement ( which was requested in december 2019 ) . on december 6 , 2019 , we entered into a lender addition and acknowledgement agreement and first amendment

