Smith Douglas Homes Reports Second Quarter 2024 Results
Smith Douglas Homes Corp. (NYSE: SDHC) reported strong Q2 2024 results, with significant year-over-year growth. Net new orders increased 17% to 715, while home closings rose 17% to 653. Revenue climbed 22% to $220.9 million, with a pre-tax income of $25.9 million and earnings of $0.40 per diluted share. The company's backlog homes increased 19% to 1,173, with a 23% rise in sales value to $404.7 million. Smith Douglas maintained a strong financial position with a debt-to-book capitalization of 1.1% and zero borrowings under its credit facility. The company's active community count grew 70% to 75, while total controlled lots increased 81% to 15,842, demonstrating significant expansion.
Smith Douglas Homes Corp. (NYSE: SDHC) ha riportato risultati solidi per il secondo trimestre del 2024, con una crescita significativa rispetto all'anno precedente. Gli ordini netti sono aumentati del 17% arrivando a 715, mentre le chiusure delle case sono aumentate del 17% a 653. I ricavi sono cresciuti del 22% raggiungendo 220,9 milioni di dollari, con un utile ante imposte di 25,9 milioni di dollari e guadagni di 0,40 dollari per azione diluita. Il portafoglio di case dell'azienda è aumentato del 19% a 1.173 case, con un aumento del valore delle vendite del 23% a 404,7 milioni di dollari. Smith Douglas ha mantenuto una posizione finanziaria solida con un rapporto debito-capitalizzazione di 1,1% e zero prestiti nel suo programma di credito. Il numero di comunità attive dell'azienda è cresciuto del 70% a 75, mentre i lotti controllati totali sono aumentati dell'81% a 15.842, dimostrando una significativa espansione.
Smith Douglas Homes Corp. (NYSE: SDHC) reportó resultados sólidos para el segundo trimestre de 2024, con un crecimiento significativo año tras año. Los nuevos pedidos netos aumentaron un 17% a 715, mientras que los cierres de viviendas aumentaron un 17% a 653. Los ingresos crecieron un 22% alcanzando los 220.9 millones de dólares, con un ingreso antes de impuestos de 25.9 millones de dólares y ganancias de 0.40 dólares por acción diluida. La reserva de casas de la empresa aumentó un 19% a 1,173, con un aumento del 23% en el valor de las ventas a 404.7 millones de dólares. Smith Douglas mantuvo una posición financiera sólida con un cociente de deuda sobre capitalización de 1.1% y cero préstamos en su línea de crédito. El número de comunidades activas de la empresa creció un 70% a 75, mientras que el total de lotes controlados aumentó un 81% a 15,842, demostrando una expansión significativa.
스미스 더글라스 홈스 주식회사 (NYSE: SDHC)는 2024년 2분기 강력한 실적을 보고하며 전년 대비 상당한 성장을 기록했습니다. 순 신규 주문은 17% 증가하여 715건에 달했습니다, 반면 주택 거래는 17% 증가하여 653건에 도달했습니다. 수익은 22% 증가하여 2억 2천90만 달러에 달했습니다, 세전 수익은 2천590만 달러였으며 희석 주당 순이익은 0.40 달러입니다. 회사의 미결제 주택 잔고는 19% 증가하여 1,173채가 되었고, 판매 가치도 23% 증가하여 4억 470만 달러에 도달했습니다. 스미스 더글라스는 부채 대비 자본금 비율이 1.1%로 강력한 재무 상태를 유지하며, 신용 시설 하에 대출이 없습니다. 회사의 활성 커뮤니티 수는 70% 증가하여 75개로, 총 관리 구역 수는 81% 증가하여 15,842개로 크게 확장되었습니다.
Smith Douglas Homes Corp. (NYSE: SDHC) a annoncé des résultats solides pour le deuxième trimestre 2024, avec une croissance significative par rapport à l'année précédente. Les nouvelles commandes nettes ont augmenté de 17% atteignant 715, tandis que les ventes de maisons ont augmenté de 17% à 653. Le chiffre d'affaires a grimpé de 22% à 220,9 millions de dollars, avec un revenu avant impôts de 25,9 millions de dollars et un bénéfice de 0,40 dollar par action diluée. Le carnet de commandes de la société a augmenté de 19% pour atteindre 1.173 maisons, avec une hausse de 23% de la valeur des ventes à 404,7 millions de dollars. Smith Douglas a maintenu une solide position financière avec un ratio d'endettement sur capitalisation de 1,1% et aucun emprunt dans son crédit revolving. Le nombre de communautés actives de l'entreprise a crû de 70% pour atteindre 75, tandis que le total des parcelles contrôlées a augmenté de 81% pour atteindre 15.842, ce qui témoigne d'une expansion significative.
Smith Douglas Homes Corp. (NYSE: SDHC) hat für das zweite Quartal 2024 starke Ergebnisse gemeldet, mit signifikantem Wachstum im Jahresvergleich. Die Netto-Neubestellungen stiegen um 17% auf 715, während die Hausabschlüsse um 17% auf 653 zunahmen. Der Umsatz kletterte um 22% auf 220,9 Millionen US-Dollar, mit einem Gewinn vor Steuern von 25,9 Millionen US-Dollar und Gewinnen von 0,40 US-Dollar pro verwässerter Aktie. Der Auftragsbestand der Gesellschaft erhöhte sich um 19% auf 1.173, mit einem Anstieg des Verkaufswerts um 23% auf 404,7 Millionen US-Dollar. Smith Douglas hielt eine starke finanzielle Position mit einem Verschuldungsgrad von 1.1% und keinen Schulden aus seiner Kreditlinie. Die Anzahl der aktiven Gemeinschaften des Unternehmens wuchs um 70% auf 75, während die Gesamtzahl der kontrollierten Bauplätze um 81% auf 15.842 zunahm, was eine signifikante Expansion zeigt.
- Net new orders increased 17% year-over-year to 715
- Home closings rose 17% to 653
- Revenue climbed 22% to $220.9 million
- Pre-tax income of $25.9 million
- Earnings of $0.40 per diluted share
- Backlog homes increased 19% to 1,173
- Sales value of backlog homes increased 23% to $404.7 million
- Active community count increased 70% to 75
- Total controlled lots increased 81% to 15,842
- Gross margins of 26.7%, above industry average
- Strong financial position with $17 million cash and $345 million stockholder's equity
- Net-debt-to-net book capitalization of -4.1%
- Ongoing affordability challenges for homebuyers
Insights
Smith Douglas Homes' Q2 2024 results demonstrate robust growth and financial strength. The 17% increase in home closings and net new orders, coupled with a 22% revenue jump to
The company's land-light strategy, with
However, investors should monitor the
The 17% growth in net new orders amidst "ongoing affordability challenges" suggests Smith Douglas Homes is effectively navigating the current housing market dynamics. The 19% increase in backlog homes and 23% rise in backlog value indicate sustained demand and potential for future revenue growth.
The 81% surge in total controlled lots to 15,842 demonstrates an aggressive growth strategy. This expansion, coupled with the 70% increase in active communities, positions the company to capitalize on market opportunities but may also expose it to increased competition and potential market shifts.
Investors should closely monitor macroeconomic factors affecting housing affordability, such as interest rates and inflation, as these could impact the company's growth trajectory and margin performance in coming quarters.
Q2 2024 Results as compared to Q2 2023:
-
Net new orders increased
17% to 715 -
Home closings increased
17% to 653 -
Revenue increased
22% to$220.9 million -
Pre-tax income of
$25.9 million -
Earnings of
$0.40 -
Backlog homes increased
19% to 1,173 -
Sales value of backlog homes increased
23% to$404.7 million -
Debt-to-book capitalization of
1.1% -
Active community count increased
70% to 75 at quarter end -
Total controlled lots increased
81% to 15,842
Greg Bennett, Vice Chairman and Chief Executive Officer, commented, “Despite ongoing affordability challenges for our homebuyers, we have achieved another robust financial quarter due to our team’s unwavering commitment to operational excellence, combined with strong market demand. Our success is highlighted by a
Russ Devendorf, Executive Vice President and Chief Financial Officer added, “During the quarter we have continued our prudent capital deployment in support of growth while maintaining our disciplined commitment to our land light strategy. We grew our total controlled lot position by
Conference Call & Webcast Information
Management will host a conference call to discuss the Company’s results at 8:30 a.m. Eastern Time on August 14, 2024. Interested parties can dial in using the numbers below or access the call via a webcast link provided in the investor relations section of the company’s website.
Dial-in Numbers:
Toll Free -
International: (+1) 646-307-1963
Conference ID: 9762287
Replay Numbers:
Toll Free -
Playback Passcode: 9762287
Replay will expire 7 days following the event
About Smith Douglas Homes
Headquartered in
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the Company’s performance, growth, strategic opportunities, and financial position. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. These forward-looking statements are based on management’s current estimates and expectations. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.
Smith Douglas Homes
|
||||||||||||||||
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
2024 |
|
|
2023 |
|
2024 |
|
|
2023 |
||||||
Home closing revenue |
|
$ |
220,933 |
|
|
$ |
181,522 |
|
|
$ |
410,142 |
|
|
$ |
349,666 |
|
Cost of home closings |
|
|
161,875 |
|
|
|
128,824 |
|
|
|
301,624 |
|
|
|
248,435 |
|
Home closing gross profit |
|
|
59,058 |
|
|
|
52,698 |
|
|
|
108,518 |
|
|
|
101,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative costs |
|
|
31,809 |
|
|
|
21,928 |
|
|
|
59,350 |
|
|
|
41,722 |
|
Equity in income from unconsolidated entities |
|
|
(220 |
) |
|
|
(226 |
) |
|
|
(404 |
) |
|
|
(436 |
) |
Interest expense |
|
|
591 |
|
|
|
301 |
|
|
|
1,289 |
|
|
|
546 |
|
Other expense (income), net |
|
|
1,012 |
|
|
(46 |
) |
|
|
1,010 |
|
|
|
(168 |
) |
|
Income before income taxes |
|
|
25,866 |
|
|
|
30,741 |
|
|
|
47,273 |
|
|
|
59,567 |
|
Provision for income taxes |
|
|
1,132 |
|
|
|
— |
|
|
|
2,053 |
|
|
|
— |
|
Net income |
|
|
24,734 |
|
|
$ |
30,741 |
|
|
|
45,220 |
|
|
$ |
59,567 |
|
Net income attributable to non-controlling interests and LLC members prior to IPO |
|
|
21,088 |
|
|
|
|
|
|
|
38,602 |
|
|
|
|
|
Net income attributable to Smith Douglas Homes Corp. |
|
$ |
3,646 |
|
|
|
|
|
|
$ |
6,618 |
|
|
|
|
|
|
Three months ended
|
Period from January 11,
|
|||||
Earnings per share: |
|
|
|
|
|||
Basic |
$ |
0.41 |
$ |
0.75 |
|||
Diluted |
$ |
0.40 |
$ |
0.74 |
|||
Weighted average shares of common stock outstanding: |
|
|
|
|
|||
Basic |
|
8,846,154 |
|
8,846,154 |
|||
Diluted |
|
51,431,974 |
|
51,414,509 |
|||
Smith Douglas Homes
|
|||||||
|
|
June 30, 2024 |
|
|
December 31, 2023 |
||
|
|
(unaudited) |
|
|
|
||
Assets |
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
17,298 |
|
|
$ |
19,777 |
Real estate inventory |
|
|
266,553 |
|
|
|
213,104 |
Deposits on real estate under option or contract |
|
|
66,253 |
|
|
|
57,096 |
Real estate not owned |
|
|
13,635 |
|
|
|
16,815 |
Property and equipment, net |
|
|
3,351 |
|
|
|
1,543 |
Goodwill |
|
|
25,726 |
|
|
|
25,726 |
Deferred tax asset, net |
|
10,934 |
|
|
|
— |
|
Other assets |
|
|
25,504 |
|
|
|
18,631 |
Total assets |
|
$ |
429,254 |
|
|
$ |
352,692 |
Liabilities and Stockholders’/Members’ Equity |
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
21,458 |
|
|
$ |
17,318 |
Customer deposits |
|
|
9,543 |
|
|
|
7,168 |
Notes payable |
|
|
3,859 |
|
|
|
75,627 |
Liabilities related to real estate not owned |
|
|
13,635 |
|
|
|
16,815 |
Accrued expenses and other liabilities |
|
|
25,799 |
|
|
|
26,861 |
Tax receivable agreement liability |
|
10,401 |
|
|
|
— |
|
Total liabilities |
|
|
84,695 |
|
|
|
143,789 |
Commitments and contingencies (Note 9) |
|
|
|
|
|
||
Members’ equity: |
|
|
|
|
|
|
|
Class A units |
|
|
— |
|
|
|
206,303 |
Class C units |
|
|
— |
|
|
|
2,000 |
Class D units |
|
|
— |
|
|
|
600 |
Total members’ equity |
|
|
— |
|
|
|
208,903 |
Stockholders’ equity: |
|
|
|
|
|
|
|
Preferred stock, |
|
|
— |
|
|
|
— |
Class A common stock, |
|
|
1 |
|
|
|
— |
Class B common stock, |
|
|
4 |
|
|
|
— |
Additional paid-in capital |
|
|
55,776 |
|
|
|
— |
Retained earnings |
|
|
6,321 |
|
|
|
— |
Total stockholders’ equity attributable to Smith Douglas Homes Corp. |
|
|
62,102 |
|
|
|
— |
Non-controlling interests attributable to Smith Douglas Holdings LLC |
|
|
282,457 |
|
|
|
— |
Total members’/stockholders’ equity |
|
|
344,559 |
|
|
|
208,903 |
Total liabilities and stockholders’/members’ equity |
|
$ |
429,254 |
|
|
$ |
352,692 |
Smith Douglas Homes
|
||||||||
Six months ended June 30, |
|
2024 |
|
2023 |
||||
Net cash (used in) provided by operating activities |
|
$ |
(9,234 |
) |
|
$ |
35,902 |
|
Net cash used in investing activities |
|
|
(3,153 |
) |
|
|
(180 |
) |
Net cash provided by (used in) financing activities |
|
|
9,908 |
|
|
|
(53,931 |
) |
Net decrease in cash and cash equivalents |
|
|
(2,479 |
) |
|
|
(18,209 |
) |
Cash and cash equivalents, beginning of period |
|
|
19,777 |
|
|
|
29,601 |
|
Cash and cash equivalents, end of period |
|
$ |
17,298 |
|
|
$ |
11,392 |
|
Smith Douglas Homes
|
|||||||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||
|
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
||||||||
Home closings |
|
|
653 |
|
|
|
560 |
|
|
|
1,219 |
|
|
|
1,060 |
|
|
ASP of homes closed |
|
$ |
338 |
|
|
$ |
324 |
|
|
$ |
336 |
|
$ |
330 |
|
||
Net new home orders |
|
|
715 |
|
|
|
612 |
|
|
|
1,480 |
|
|
|
1,276 |
|
|
Contract value of net new home orders |
|
$ |
243,842 |
|
|
$ |
206,130 |
|
|
$ |
503,282 |
|
|
$ |
421,248 |
|
|
ASP of net new home orders |
|
$ |
341 |
|
|
$ |
337 |
|
|
$ |
340 |
|
|
$ |
330 |
|
|
Cancellation rate(1) |
|
|
11.8 |
% |
|
|
8.7 |
% |
|
|
11.2 |
% |
|
|
8.8 |
% |
|
Backlog homes (period end)(2) |
|
|
1,173 |
|
|
|
985 |
|
|
|
1,173 |
|
|
|
985 |
|
|
Contract value of backlog homes (period end) |
|
$ |
404,750 |
|
|
$ |
330,258 |
|
|
$ |
404,750 |
|
|
$ |
330,258 |
|
|
ASP of backlog homes (period end) |
|
$ |
345 |
|
|
$ |
335 |
|
|
$ |
345 |
|
|
$ |
335 |
|
|
Active communities (period end)(3) |
|
|
75 |
|
|
|
44 |
|
|
|
75 |
|
|
|
44 |
|
|
Controlled lots (period end): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Homes under construction |
|
|
1,088 |
|
|
|
706 |
|
|
|
1,088 |
|
|
|
706 |
|
|
Owned lots |
|
|
587 |
|
|
|
405 |
|
|
|
587 |
|
|
|
405 |
|
|
Optioned lots |
|
|
14,167 |
|
|
|
7,659 |
|
|
|
14,167 |
|
|
|
7,659 |
||
Total controlled lots |
|
|
15,842 |
|
|
|
8,770 |
|
|
|
15,842 |
|
|
|
8,770 |
||
(1) |
The cancellation rate is the total number of cancellations during the period divided by the total gross new home orders during the period. |
|
(2) |
Backlog homes (period end) is the number of homes in backlog from the previous period plus the number of net new home orders generated during the current period minus the number of homes closed during the current period. |
|
(3) |
A community becomes active once the model is completed or the community has its first sale. A community becomes inactive when it has fewer than two homes remaining to sell. |
Smith Douglas Homes
|
|||||||||||||||||||||||||||
| Home Closing Revenue | |||||||||||||||||||||||||||
Three months ended June 30, |
2024 |
2023 |
Period over period change |
||||||||||||||||||||||||
|
Home closing
|
Home
|
ASP of
|
Home closing
|
Home
|
ASP of
|
Home
|
Home
|
ASP of
|
||||||||||||||||||
|
$ |
43,585 |
145 |
$ |
301 |
$ |
18,800 |
66 |
$ |
285 |
132 |
% |
120 |
% |
6 |
% |
|||||||||||
|
|
80,220 |
231 |
|
347 |
|
94,104 |
302 |
|
312 |
(15 |
)% |
(24 |
)% |
11 |
% |
|||||||||||
|
|
15,352 |
43 |
|
357 |
|
14,369 |
40 |
|
359 |
7 |
% |
8 |
% |
(1 |
)% |
|||||||||||
|
|
31,248 |
95 |
|
329 |
|
— |
— |
|
— |
100 |
% |
100 |
% |
100 |
% |
|||||||||||
|
|
21,707 |
58 |
|
374 |
|
28,019 |
79 |
|
355 |
(23 |
)% |
(27 |
)% |
6 |
% |
|||||||||||
|
|
28,821 |
81 |
|
356 |
|
26,230 |
73 |
|
359 |
10 |
% |
11 |
% |
(1 |
)% |
|||||||||||
Total |
$ |
220,933 |
653 |
$ |
338 |
$ |
181,522 |
560 |
$ |
324 |
22 |
% |
17 |
% |
4 |
% |
|||||||||||
Six months ended June 30, |
2024 |
|
|
2023 |
|
|
Period over period change |
||||||||||||||||||||
|
Home closing
|
Home
|
ASP of
|
Home closing
|
Home
|
ASP of
|
Home
|
Home
|
ASP of
homes
|
||||||||||||||||||
|
$ |
83,240 |
277 |
$ |
301 |
$ |
42,867 |
147 |
$ |
292 |
94 |
% |
88 |
% |
3 |
% |
|||||||||||
|
|
142,840 |
414 |
|
345 |
|
170,278 |
537 |
|
317 |
(16 |
)% |
(23 |
)% |
9 |
% |
|||||||||||
|
|
28,816 |
77 |
|
374 |
|
26,871 |
73 |
|
368 |
7 |
% |
5 |
% |
2 |
% |
|||||||||||
|
|
55,278 |
169 |
|
327 |
|
— |
— |
|
— |
100 |
% |
100 |
% |
100 |
% |
|||||||||||
|
|
43,737 |
121 |
|
361 |
|
51,908 |
144 |
|
360 |
(16 |
)% |
(16 |
)% |
— |
% |
|||||||||||
|
|
56,231 |
161 |
|
349 |
|
57,742 |
159 |
|
363 |
(3 |
)% |
1 |
% |
(4 |
)% |
|||||||||||
Total |
$ |
410,142 |
1,219 |
$ |
336 |
$ |
349,666 |
1,060 |
$ |
330 |
17 |
% |
15 |
% |
2 |
% |
|||||||||||
Backlog |
|||||||||||||||||||||||||||
As of June 30, |
2024 |
2023 |
Period over period change |
||||||||||||||||||||||||
|
Backlog
|
Contract
|
ASP of
|
Backlog
|
Contract
|
ASP of
|
Backlog
|
Contract
|
ASP of
|
||||||||||||||||||
|
169 |
$ |
50,122 |
$ |
297 |
246 |
$ |
73,028 |
$ |
297 |
(31 |
)% |
(31 |
)% |
— |
% |
|||||||||||
|
492 |
|
170,724 |
|
347 |
374 |
|
125,606 |
|
336 |
32 |
% |
36 |
% |
3 |
% |
|||||||||||
|
121 |
|
49,498 |
|
409 |
70 |
|
25,035 |
|
358 |
73 |
% |
98 |
% |
14 |
% |
|||||||||||
|
200 |
|
64,445 |
|
322 |
— |
|
— |
|
— |
100 |
% |
100 |
% |
100 |
% |
|||||||||||
|
52 |
|
20,681 |
|
398 |
129 |
|
47,346 |
|
367 |
(60 |
)% |
(56 |
)% |
8 |
% |
|||||||||||
|
139 |
|
49,280 |
|
355 |
166 |
|
59,243 |
|
357 |
(16 |
)% |
(17 |
)% |
(1 |
)% |
|||||||||||
Total |
1,173 |
$ |
404,750 |
$ |
345 |
985 |
$ |
330,258 |
$ |
335 |
19 |
% |
23 |
% |
3 |
% |
|||||||||||
Controlled Lots |
|||||||||||||||||||||||
As of June 30, |
2024 |
|
|
2023 |
|
|
Period over period change |
||||||||||||||||
|
Owned(1) |
Optioned |
Total Controlled |
Owned(1) |
Optioned |
Total Controlled |
Owned(1) |
Optioned |
Total Controlled |
||||||||||||||
|
355 |
1,420 |
1,775 |
315 |
1,483 |
1,798 |
13 |
% |
(4 |
)% |
(1 |
)% |
|||||||||||
|
485 |
7,457 |
7,942 |
338 |
3,384 |
3,722 |
43 |
% |
120 |
% |
113 |
% |
|||||||||||
|
144 |
2,021 |
2,165 |
81 |
1,127 |
1,208 |
78 |
% |
79 |
% |
79 |
% |
|||||||||||
|
384 |
1,390 |
1,774 |
— |
— |
— |
100 |
% |
100 |
% |
100 |
% |
|||||||||||
|
93 |
820 |
913 |
207 |
662 |
869 |
(55 |
)% |
24 |
% |
5 |
% |
|||||||||||
|
214 |
1,059 |
1,273 |
170 |
1,003 |
1,173 |
26 |
% |
6 |
% |
9 |
% |
|||||||||||
Total |
1,675 |
14,167 |
15,842 |
1,111 |
7,659 |
8,770 |
51 |
% |
85 |
% |
81 |
% |
|||||||||||
(1) |
Includes homes under construction and owned lots. |
Net Income |
|||||||||||||||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||||||||||
2024 |
|
2023 |
|
Period over period
|
|
|
2024 |
|
2023 |
|
Period over period
|
||||||||||||||
|
$ |
5,559 |
|
$ |
1,435 |
|
$ |
4,124 |
|
|
$ |
10,163 |
|
$ |
3,676 |
|
$ |
6,487 |
|
||||||
|
|
18,012 |
|
|
23,379 |
|
|
(5,367 |
) |
|
32,583 |
|
|
42,928 |
|
|
(10,345 |
) |
|||||||
|
|
2,380 |
|
|
2,380 |
|
|
— |
|
|
|
4,004 |
|
|
4,313 |
|
|
(309 |
) |
||||||
|
|
3,446 |
|
|
— |
|
|
3,446 |
|
|
|
6,812 |
|
|
— |
|
|
6,812 |
|
||||||
|
|
2,789 |
|
|
4,501 |
|
|
(1,712 |
) |
|
|
5,102 |
|
|
7,732 |
|
|
(2,630 |
) |
||||||
|
|
5,207 |
|
|
5,615 |
|
|
(408 |
) |
|
10,017 |
|
|
12,846 |
|
|
(2,829 |
) |
|||||||
Segment total |
|
37,393 |
|
|
37,310 |
|
|
83 |
|
|
|
68,681 |
|
|
71,495 |
|
|
(2,814 |
) |
||||||
Corporate(1) |
|
(12,659 |
) |
|
(6,569 |
) |
|
(6,090 |
) |
|
(23,461 |
) |
|
(11,928 |
) |
|
(11,533 |
) |
|||||||
Total |
$ |
24,734 |
|
$ |
30,741 |
|
$ |
(6,007 |
) |
$ |
45,220 |
|
$ |
59,567 |
|
$ |
(14,347 |
) |
|||||||
(1) |
Corporate primarily includes corporate overhead costs, such as payroll and benefits, business insurance, information technology, office costs, outside professional services and travel costs, and certain other amounts that are not allocated to the reportable segments. |
Non-GAAP Financial Measures
In addition to our results determined in accordance with generally accepted accounting principles in the
Net-debt-to-net book capitalization
Net-debt-to-net book capitalization is a supplemental measure of our leverage that is not required by, or presented in accordance with, GAAP and should not be considered as an alternative to debt-to-book capitalization or any other measure derived in accordance with GAAP. We caution investors that amounts presented in accordance with our definition of net-debt-to-net book capitalization may not be comparable to similar measures disclosed by our competitors because not all companies and analysts calculate this non-GAAP financial measure in the same manner. We present this non-GAAP financial measure because we consider it to be an important supplemental measure of our leverage and believe it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry.
We define net-debt-to-net book capitalization as:
- Total debt, less cash and cash equivalents, divided by
- Total debt, less cash and cash equivalents, plus stockholders’ equity.
This non-GAAP financial measure has limitations as an analytical tool in that it subtracts cash and cash equivalents and therefore may imply that the Company has less debt than the most comparable measure determined in accordance with GAAP. Because of this limitation, this non-GAAP financial measure should be considered along with other financial measures presented in accordance with GAAP. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. We have reconciled this non-GAAP financial measure with the most directly comparable GAAP financial measure in the following table:
As of
|
|
June 30,
|
|
December 31,
|
||||
Notes payable |
|
$ |
3,859 |
|
|
$ |
75,627 |
|
Stockholders’/ Members’ equity |
|
|
344,559 |
|
|
|
208,903 |
|
Total capitalization |
|
$ |
348,418 |
|
|
$ |
284,530 |
|
Debt-to-book capitalization |
|
|
1.1 |
% |
|
|
26.6 |
% |
Notes payable |
|
$ |
3,859 |
|
|
$ |
75,627 |
|
Less: cash and cash equivalents |
|
|
17,298 |
|
|
|
19,777 |
|
Net debt |
|
|
(13,439 |
) |
|
|
55,850 |
|
Stockholders’/ Members’ equity |
|
|
344,559 |
|
|
|
208,903 |
|
Total net capitalization |
|
$ |
331,120 |
|
|
$ |
264,753 |
|
Net-debt-to-net book capitalization |
|
|
(4.1 |
)% |
|
|
21.1 |
% |
Adjusted net income
Adjusted net income is not a measure of net income or net income margin as determined by GAAP. Adjusted net income is a supplemental non-GAAP financial measure used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders, and rating agencies. We define adjusted net income as net income adjusted for the tax impact using a
Management believes adjusted net income is useful because it allows management to more effectively evaluate our operating performance and comparability to industry peers who record income tax expense on their income before tax as opposed to the income of Smith Douglas Holdings LLC not being taxed at the entity level and, therefore, not reflecting a charge against earnings for income tax expense. Adjusted net income should not be considered as an alternative to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. Our computation of adjusted net income may not be comparable to adjusted net income of other companies. We present adjusted net income because we believe it provides useful information regarding our comparability to peers.
The following table presents a reconciliation of adjusted net income to the GAAP financial measure of net income for each of the periods indicated:
|
Three months ended June 30, |
Six months ended June 30, |
|||||||||||
|
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
||||
Net income |
$ |
24,734 |
$ |
30,741 |
$ |
45,220 |
$ |
59,567 |
|||||
Provision for income taxes |
|
1,132 |
|
— |
|
2,053 |
|
— |
|||||
Income before income taxes |
|
25,866 |
|
30,741 |
|
47,273 |
|
59,567 |
|||||
Tax-effected adjustments(1) |
|
6,467 |
|
7,685 |
|
11,818 |
|
14,892 |
|||||
Adjusted net income |
$ |
19,399 |
$ |
23,056 |
$ |
35,455 |
$ |
44,675 |
|||||
(1) |
For the three months ended June 30, 2024 and 2023, our tax expenses assumes a |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240813429502/en/
Investor Relations
Joe Thomas
908-399-5413
investors@smithdouglas.com
Source: Smith Douglas Homes Corp.
FAQ
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