Smith Douglas Homes Reports Third Quarter 2024 Results
Smith Douglas Homes reported strong Q3 2024 results with significant growth across key metrics. Home closings increased 39% to 812 units, while home closing revenue rose 41% to $277.8 million. The company achieved a home closing gross margin of 26.5% and pretax income of $39.6 million, resulting in earnings of $0.58 per diluted share. Active community count grew 19% to 74, and total controlled lots increased 54% to 17,878. The company expanded into Greenville, SC, and continued development in Central Georgia and Chattanooga, TN. Financial position remains robust with $24 million cash, $372 million stockholder's equity, and zero borrowings.
Smith Douglas Homes ha riportato risultati solidi per il terzo trimestre del 2024, con una crescita significativa in tutti i principali indicatori. Le chiusure di case sono aumentate del 39% raggiungendo 812 unità, mentre i ricavi da chiusura sono saliti del 41% a 277,8 milioni di dollari. L'azienda ha ottenuto un margine lordo sulle chiusure di case del 26,5% e un reddito ante imposte di 39,6 milioni di dollari, con utili di 0,58 dollari per azione diluita. Il numero di comunità attive è cresciuto del 19% a 74, e il totale dei lotti controllati è aumentato del 54% a 17.878. L'azienda si è espansa a Greenville, SC, e ha continuato lo sviluppo in Georgia Centrale e Chattanooga, TN. La posizione finanziaria rimane robusta con 24 milioni di dollari in contanti, 372 milioni di dollari di patrimonio netto e zero indebitamento.
Smith Douglas Homes reportó resultados sólidos en el tercer trimestre de 2024, con un crecimiento significativo en métricas clave. Los cierres de viviendas aumentaron un 39% a 812 unidades, mientras que los ingresos por cierres de viviendas subieron un 41% a $277,8 millones. La empresa logró un margen bruto de cierre de viviendas del 26,5% y un ingreso antes de impuestos de $39,6 millones, lo que resultó en ganancias de $0,58 por acción diluida. La cantidad de comunidades activas creció un 19% a 74, y el total de lotes controlados aumentó un 54% a 17.878. La empresa se expandió a Greenville, SC, y continuó desarrollándose en Georgia Central y Chattanooga, TN. La posición financiera sigue siendo robusta con $24 millones en efectivo, $372 millones en patrimonio de los accionistas y cero deudas.
스미스 더글라스 홈즈는 2024년 3분기 강력한 실적을 보고하며 주요 지표에서 상당한 성장을 기록했습니다. 주택 마감 건수는 39% 증가하여 812개 유닛에 도달하였고, 주택 마감 수익은 41% 증가하여 $277.8백만에 달했습니다. 이 회사는 26.5%의 주택 마감 총 마진과 $39.6백만의 세전 소득을 달성하여 희석 주당 수익이 $0.58에 달했습니다. 활성 커뮤니티 수는 19% 증가하여 74개가 되었고, 전체 관리 부지는 54% 증가하여 17,878개가 되었습니다. 회사는 사우스캐롤라이나 주 그린빌로 확장하였고, 조지아 중부와 테네시주 채타누가에서의 개발을 지속하고 있습니다. 재무 상태는 현금 2400만 달러, 주주 자산 3억 7200만 달러, 대출 없이 강력합니다.
Smith Douglas Homes a rapporté de solides résultats pour le troisième trimestre 2024, avec une croissance significative dans tous les indicateurs clés. Les ventes de maisons ont augmenté de 39% pour atteindre 812 unités, tandis que les revenus des ventes de maisons ont grimpé de 41% à 277,8 millions de dollars. L'entreprise a réalisé une marge brute sur les ventes de maisons de 26,5% et un revenu avant impôts de 39,6 millions de dollars, ce qui a entraîné un bénéfice de 0,58 dollar par action diluée. Le nombre de communautés actives a augmenté de 19% pour atteindre 74, et le nombre total de terrains contrôlés a bondi de 54% à 17.878. L'entreprise s'est étendue à Greenville, SC, et a poursuivi son développement en Géorgie centrale et à Chattanooga, TN. La position financière demeure solide avec 24 millions de dollars en liquidités, 372 millions de dollars de fonds propres et aucune dette.
Smith Douglas Homes hat im dritten Quartal 2024 starke Ergebnisse gemeldet, mit signifikantem Wachstum in wichtigen Kennzahlen. Die Hausabschlüsse stiegen um 39% auf 812 Einheiten, während die Erlöse aus Hausabschlüssen um 41% auf 277,8 Millionen Dollar zunahmen. Das Unternehmen erzielte eine Bruttomarge bei Hausabschlüssen von 26,5% und ein Vorsteuerergebnis von 39,6 Millionen Dollar, was zu einem Gewinn von 0,58 Dollar pro verwässerter Aktie führte. Die Anzahl aktiver Gemeinschaften wuchs um 19% auf 74, und die Gesamtzahl kontrollierter Grundstücke stieg um 54% auf 17.878. Das Unternehmen expandierte nach Greenville, SC, und setzte die Entwicklung in Zentralgeorgia und Chattanooga, TN, fort. Die finanzielle Lage bleibt robust mit 24 Millionen Dollar in bar, 372 Millionen Dollar Eigenkapital und null Schulden.
- Home closings increased 39% YoY to 812 units
- Revenue grew 41% YoY to $277.8 million
- Strong gross margin of 26.5%
- Pretax income of $39.6 million
- 54% increase in total controlled lots
- 19% growth in active communities
- Zero debt with negative net debt-to-book capitalization
- Net new home orders growth slowed to 6% YoY
Insights
Smith Douglas Homes delivered impressive Q3 2024 results with significant growth across key metrics. The
The company's land-light strategy is particularly noteworthy, with
Geographic expansion into Greenville, SC, coupled with infrastructure development in Central Georgia and Chattanooga, positions the company well for continued market share gains in the Southeast. The
Q3 2024 Results as compared to Q3 2023:
-
Home closings increased
39% to 812 -
Home closing revenue increased
41% to$277.8 million -
Home closing gross margin of
26.5% -
Net new home orders increased
6% to 600 -
Pretax income of
$39.6 million -
Earnings of
$0.58 -
Debt-to-book capitalization of
0.9% -
Active community count increased
19% to 74 at quarter end -
Total controlled lots increased
54% to 17,878
Greg Bennett, Vice Chairman and Chief Executive Officer, commented, “Our team's commitment to our core operational strategies - offering homebuyers a personalized buying experience, working closely with suppliers and trade partners for an efficient production cycle, and maintaining a land light balance sheet - continues to deliver strong results. We achieved record results in the third quarter, with 812 closings for
Russ Devendorf, Executive Vice President and Chief Financial Officer, added, “During the quarter we further expanded our geographic presence by expanding into
Mr. Devendorf continued, “As we approach the fourth quarter, our financial condition remains strong. As of September 30, 2024, we had 16,743 unstarted controlled lots,
Conference Call & Webcast Information
Management will host a conference call to discuss the Company’s results at 8:30 a.m. Eastern Time on November 12, 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: 8743844
Replay Numbers:
Toll Free -
Playback Passcode: 8743844
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 Condensed Consolidated Statements of Income (Unaudited, in thousands, except share and per share amounts) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Home closing revenue |
$ |
277,835 |
|
|
$ |
197,638 |
|
|
$ |
687,977 |
|
|
$ |
547,304 |
|
Cost of home closings |
|
204,140 |
|
|
|
140,548 |
|
|
|
505,764 |
|
|
|
388,983 |
|
Home closing gross profit |
|
73,695 |
|
|
|
57,090 |
|
|
|
182,213 |
|
|
|
158,321 |
|
|
|
|
|
|
|
|
|
||||||||
Selling, general, and administrative costs |
|
34,137 |
|
|
|
22,952 |
|
|
|
93,487 |
|
|
|
64,674 |
|
Equity in income from unconsolidated entities |
|
(396 |
) |
|
|
(222 |
) |
|
|
(800 |
) |
|
|
(658 |
) |
Interest expense |
|
614 |
|
|
|
476 |
|
|
|
1,903 |
|
|
|
1,022 |
|
Other (income) expense, net |
|
(245 |
) |
|
|
(49 |
) |
|
|
765 |
|
|
|
(217 |
) |
Income before income taxes |
|
39,585 |
|
|
|
33,933 |
|
|
|
86,858 |
|
|
|
93,500 |
|
Provision for income taxes |
|
1,761 |
|
|
|
— |
|
|
|
3,814 |
|
|
|
— |
|
Net income |
|
37,824 |
|
|
$ |
33,933 |
|
|
|
83,044 |
|
|
$ |
93,500 |
|
Net income attributable to non-controlling interests and LLC members prior to IPO |
|
32,477 |
|
|
|
|
|
71,079 |
|
|
|
||||
Net income attributable to Smith Douglas Homes Corp. |
$ |
5,347 |
|
|
|
|
$ |
11,965 |
|
|
|
||||
|
Three months ended September 30, 2024 |
|
Period from January 11, 2024 to September 30, 2024 |
||||
Earnings per share: |
|
|
|
||||
Basic |
$ |
0.60 |
|
$ |
1.35 |
||
Diluted |
$ |
0.58 |
|
|
$ |
1.30 |
|
Weighted average shares of common stock outstanding: |
|
|
|
||||
Basic |
|
8,846,154 |
|
|
|
8,846,154 |
|
Diluted |
|
51,533,407 |
|
|
|
51,502,413 |
|
Smith Douglas Homes Condensed Consolidated Balance Sheets |
|||||||
|
September 30, 2024 |
|
December 31, 2023 |
||||
|
(unaudited) |
|
|
||||
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
23,716 |
|
$ |
19,777 |
||
Real estate inventory |
|
282,013 |
|
|
|
213,104 |
|
Deposits on real estate under option or contract |
|
80,209 |
|
|
|
57,096 |
|
Real estate not owned |
|
9,445 |
|
|
|
16,815 |
|
Property and equipment, net |
|
3,569 |
|
|
|
1,543 |
|
Goodwill |
|
25,726 |
|
|
|
25,726 |
|
Deferred tax asset, net |
|
10,693 |
|
|
|
— |
|
Other assets |
|
24,679 |
|
|
|
18,631 |
|
Total assets |
$ |
460,050 |
|
|
$ |
352,692 |
|
Liabilities and Stockholders’/Members’ Equity |
|
|
|
||||
Liabilities: |
|
|
|
||||
Accounts payable |
$ |
23,505 |
|
|
$ |
17,318 |
|
Customer deposits |
|
7,608 |
|
|
|
7,168 |
|
Notes payable |
|
3,463 |
|
|
|
75,627 |
|
Liabilities related to real estate not owned |
|
9,445 |
|
|
|
16,815 |
|
Accrued expenses and other liabilities |
|
33,268 |
|
|
|
26,861 |
|
Tax receivable agreement liability |
|
10,401 |
|
|
|
— |
|
Total liabilities |
|
87,690 |
|
|
|
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 |
|
57,010 |
|
|
|
— |
|
Retained earnings |
|
11,420 |
|
|
|
— |
|
Total stockholders’ equity attributable to Smith Douglas Homes Corp. |
|
68,435 |
|
|
|
— |
|
Non-controlling interests attributable to Smith Douglas Holdings LLC |
|
303,925 |
|
|
|
— |
|
Total stockholders’/members’ equity |
|
372,360 |
|
|
|
208,903 |
|
Total liabilities and stockholders’/members’ equity |
$ |
460,050 |
|
|
$ |
352,692 |
|
Smith Douglas Homes Summary Cash Flow Information (Unaudited, dollars in thousands) |
|||||||
Nine months ended September 30, |
2024 |
|
2023 |
||||
Net cash provided by operating activities |
$ |
13,655 |
|
|
$ |
54,958 |
|
Net cash used in investing activities |
|
(3,780 |
) |
|
|
(75,631 |
) |
Net cash (used in) provided by financing activities |
|
(5,936 |
) |
|
|
1,512 |
|
Net increase (decrease) in cash and cash equivalents |
|
3,939 |
|
|
|
(19,161 |
) |
Cash and cash equivalents, beginning of period |
|
19,777 |
|
|
|
29,601 |
|
Cash and cash equivalents, end of period |
$ |
23,716 |
|
|
$ |
10,440 |
|
Smith Douglas Homes Selected Other Operating Data (Unaudited, dollars in thousands) |
|||||||||||||||
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Home closings |
|
812 |
|
|
|
583 |
|
|
|
2,031 |
|
|
|
1,643 |
|
ASP of homes closed |
$ |
342 |
|
|
$ |
339 |
|
|
$ |
339 |
|
|
$ |
333 |
|
Net new home orders |
|
600 |
|
|
|
568 |
|
|
|
2,080 |
|
|
|
1,844 |
|
Contract value of net new home orders |
$ |
205,164 |
|
|
$ |
193,435 |
|
|
$ |
708,446 |
|
|
$ |
614,683 |
|
ASP of net new home orders |
$ |
342 |
|
|
$ |
341 |
|
|
$ |
341 |
|
|
$ |
333 |
|
Cancellation rate(2) |
|
11.4 |
% |
|
|
11.0 |
% |
|
|
11.3 |
% |
|
|
9.5 |
% |
Backlog homes (period end)(3) |
|
961 |
|
|
|
1,042 |
|
|
|
961 |
|
|
|
1,042 |
|
Contract value of backlog homes (period end) |
$ |
332,035 |
|
|
$ |
350,439 |
|
|
$ |
332,035 |
|
|
$ |
350,439 |
|
ASP of backlog homes (period end) |
$ |
346 |
|
|
$ |
336 |
|
|
$ |
346 |
|
|
$ |
336 |
|
Active communities (period end)(4) |
|
74 |
|
|
|
62 |
|
|
|
74 |
|
|
|
62 |
|
Controlled lots (period end): |
|
|
|
|
|
|
|
||||||||
Homes under construction |
|
1,135 |
|
|
|
905 |
|
|
|
1,135 |
|
|
|
905 |
|
Owned lots |
|
611 |
|
|
|
395 |
|
|
|
611 |
|
|
|
395 |
|
Optioned lots |
|
16,132 |
|
|
|
10,279 |
|
|
|
16,132 |
|
|
|
10,279 |
|
Total controlled lots |
|
17,878 |
|
|
|
11,579 |
|
|
|
17,878 |
|
|
|
11,579 |
|
(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 Selected Financial Information by Segment (Unaudited, dollars in thousands) |
|||||||||||||||||||||||||||||||
Home Closing Revenue |
|||||||||||||||||||||||||||||||
Three months ended September 30, |
|
2024 |
|
2023 |
|
Period over period change |
|||||||||||||||||||||||||
|
|
Home closing revenue |
|
Home closings |
|
ASP of homes closed |
|
Home closing revenue |
|
Home closings |
|
ASP of homes closed |
|
Home closing revenue |
|
Home closings |
|
ASP of homes closed |
|||||||||||||
|
|
$ |
37,780 |
|
129 |
|
$ |
293 |
|
$ |
33,048 |
|
114 |
|
$ |
290 |
|
14 |
% |
|
13 |
% |
|
1 |
% |
||||||
|
|
|
121,334 |
|
|
350 |
|
|
|
347 |
|
|
|
80,494 |
|
|
232 |
|
|
|
347 |
|
|
51 |
% |
|
51 |
% |
|
— |
% |
|
|
|
32,070 |
|
|
82 |
|
|
|
391 |
|
|
|
15,155 |
|
|
44 |
|
|
|
344 |
|
|
112 |
% |
|
86 |
% |
|
14 |
% |
|
|
|
30,830 |
|
|
97 |
|
|
|
318 |
|
|
|
10,260 |
|
|
31 |
|
|
|
331 |
|
|
200 |
% |
|
213 |
% |
|
(4 |
%) |
|
|
|
20,097 |
|
|
52 |
|
|
|
386 |
|
|
|
25,694 |
|
|
70 |
|
|
|
367 |
|
|
(22 |
)% |
|
(26 |
)% |
|
5 |
% |
|
|
|
35,724 |
|
|
102 |
|
|
|
350 |
|
|
|
32,987 |
|
|
92 |
|
|
|
359 |
|
|
8 |
% |
|
11 |
% |
|
(3 |
)% |
Total |
|
$ |
277,835 |
|
|
812 |
|
|
$ |
342 |
|
|
$ |
197,638 |
|
|
583 |
|
|
$ |
339 |
|
|
41 |
% |
|
39 |
% |
|
1 |
% |
Nine months ended September 30, |
|
2024 |
|
2023 |
|
Period over period change |
|||||||||||||||||||||||||
|
|
Home closing revenue |
|
Home closings |
|
ASP of homes closed |
|
Home closing revenue |
|
Home closings |
|
ASP of homes closed |
|
Home closing revenue |
|
Home closings |
|
ASP of homes closed |
|||||||||||||
|
|
$ |
121,020 |
|
406 |
|
$ |
298 |
|
$ |
75,915 |
|
261 |
|
$ |
291 |
|
59 |
% |
|
56 |
% |
|
2 |
% |
||||||
|
|
|
264,174 |
|
|
764 |
|
|
|
346 |
|
|
|
250,772 |
|
|
769 |
|
|
|
326 |
|
|
5 |
% |
|
(1 |
)% |
|
6 |
% |
|
|
|
60,886 |
|
|
159 |
|
|
|
383 |
|
|
|
42,026 |
|
|
117 |
|
|
|
359 |
|
|
45 |
% |
|
36 |
% |
|
7 |
% |
|
|
|
86,108 |
|
|
266 |
|
|
|
324 |
|
|
|
10,260 |
|
|
31 |
|
|
|
331 |
|
|
739 |
% |
|
758 |
% |
|
(2 |
%) |
|
|
|
63,834 |
|
|
173 |
|
|
|
369 |
|
|
|
77,602 |
|
|
214 |
|
|
|
363 |
|
|
(18 |
)% |
|
(19 |
)% |
|
2 |
% |
|
|
|
91,955 |
|
|
263 |
|
|
|
350 |
|
|
|
90,729 |
|
|
251 |
|
|
|
361 |
|
|
1 |
% |
|
5 |
% |
|
(3 |
)% |
Total |
|
$ |
687,977 |
|
|
2,031 |
|
|
$ |
339 |
|
|
$ |
547,304 |
|
|
1,643 |
|
|
$ |
333 |
|
|
26 |
% |
|
24 |
% |
|
2 |
% |
Backlog |
|||||||||||||||||||||||||||||||
As of September 30, |
|
2024 |
|
2023 |
|
Period over period change |
|||||||||||||||||||||||||
|
|
Backlog homes |
|
Contract value of backlog homes |
|
ASP of backlog homes |
|
Backlog homes |
|
Contract value of backlog homes |
|
ASP of backlog homes |
|
Backlog homes |
|
Contract value of backlog homes |
|
ASP of backlog homes |
|||||||||||||
|
|
173 |
|
$ |
50,321 |
|
$ |
291 |
|
257 |
|
$ |
78,431 |
|
$ |
305 |
|
(33 |
)% |
|
(36 |
)% |
|
(5 |
%) |
||||||
|
|
363 |
|
|
|
126,406 |
|
|
|
348 |
|
|
359 |
|
|
|
119,157 |
|
|
|
332 |
|
|
1 |
% |
|
6 |
% |
|
5 |
% |
|
|
104 |
|
|
|
42,454 |
|
|
|
408 |
|
|
68 |
|
|
|
26,448 |
|
|
|
389 |
|
|
53 |
% |
|
61 |
% |
|
5 |
% |
|
|
168 |
|
|
|
55,392 |
|
|
|
330 |
|
|
101 |
|
|
|
34,266 |
|
|
|
339 |
|
|
66 |
% |
|
62 |
% |
|
(3 |
%) |
|
|
36 |
|
|
|
14,983 |
|
|
|
416 |
|
|
107 |
|
|
|
38,881 |
|
|
|
363 |
|
|
(66 |
)% |
|
(61 |
)% |
|
15 |
% |
|
|
117 |
|
|
|
42,479 |
|
|
|
363 |
|
|
150 |
|
|
|
53,256 |
|
|
|
355 |
|
|
(22 |
)% |
|
(20 |
)% |
|
2 |
% |
Total |
|
961 |
|
|
$ |
332,035 |
|
|
$ |
346 |
|
|
1,042 |
|
|
$ |
350,439 |
|
|
$ |
336 |
|
|
(8 |
%) |
|
(5 |
%) |
|
3 |
% |
Controlled Lots |
|||||||||||||||||||||||||||
As of September 30, |
|
2024 |
|
2023 |
|
Period over period change |
|||||||||||||||||||||
|
|
Owned(1) |
|
Optioned |
|
Total Controlled |
|
Owned(1) |
|
Optioned |
|
Total Controlled |
|
Owned(1) |
|
Optioned |
|
Total Controlled |
|||||||||
|
|
390 |
|
1,388 |
|
1,778 |
|
329 |
|
1,578 |
|
1,907 |
|
19 |
% |
|
(12 |
)% |
|
(7 |
)% |
||||||
|
|
567 |
|
|
7,950 |
|
|
8,517 |
|
|
318 |
|
|
4,612 |
|
|
4,930 |
|
|
78 |
% |
|
72 |
% |
|
73 |
% |
|
|
141 |
|
|
2,339 |
|
|
2,480 |
|
|
67 |
|
|
1,101 |
|
|
1,168 |
|
|
110 |
% |
|
112 |
% |
|
112 |
% |
|
|
364 |
|
|
1,713 |
|
|
2,077 |
|
|
242 |
|
|
1,157 |
|
|
1,399 |
|
|
50 |
% |
|
48 |
% |
|
48 |
% |
|
|
84 |
|
|
913 |
|
|
997 |
|
|
166 |
|
|
816 |
|
|
982 |
|
|
(49 |
)% |
|
12 |
% |
|
2 |
% |
|
|
200 |
|
|
1,491 |
|
|
1,691 |
|
|
178 |
|
|
1,015 |
|
|
1,193 |
|
|
12 |
% |
|
47 |
% |
|
42 |
% |
Other |
|
— |
|
|
338 |
|
|
338 |
|
|
— |
|
|
— |
|
|
— |
|
|
100 |
% |
|
100 |
% |
|
100 |
% |
Total |
|
1,746 |
|
|
16,132 |
|
|
17,878 |
|
|
1,300 |
|
|
10,279 |
|
|
11,579 |
|
|
34 |
% |
|
57 |
% |
|
54 |
% |
(1) |
Includes homes under construction and owned lots. |
Net Income |
||||||||||||||||||||||||
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||||||||||||||||||
|
|
2024 |
|
2023 |
|
Period over period change |
|
2024 |
|
2023 |
|
Period over period change |
||||||||||||
|
|
$ |
4,188 |
|
|
$ |
3,882 |
|
|
$ |
306 |
|
|
$ |
14,351 |
|
|
$ |
7,558 |
|
|
$ |
6,793 |
|
|
|
|
28,929 |
|
|
|
21,282 |
|
|
|
7,647 |
|
|
|
61,512 |
|
|
|
64,210 |
|
|
|
(2,698 |
) |
|
|
|
5,120 |
|
|
|
2,303 |
|
|
|
2,817 |
|
|
|
9,124 |
|
|
|
6,616 |
|
|
|
2,508 |
|
|
|
|
4,305 |
|
|
|
869 |
|
|
|
3,436 |
|
|
|
11,117 |
|
|
|
869 |
|
|
|
10,248 |
|
|
|
|
2,707 |
|
|
|
4,787 |
|
|
|
(2,080 |
) |
|
|
7,809 |
|
|
|
12,519 |
|
|
|
(4,710 |
) |
|
|
|
5,770 |
|
|
|
6,795 |
|
|
|
(1,025 |
) |
|
|
15,787 |
|
|
|
19,641 |
|
|
|
(3,854 |
) |
Segment total |
|
|
51,019 |
|
|
|
39,918 |
|
|
|
11,101 |
|
|
|
119,700 |
|
|
|
111,413 |
|
|
|
8,287 |
|
Other(1) |
|
|
(13,195 |
) |
|
|
(5,985 |
) |
|
|
(7,210 |
) |
|
|
(36,656 |
) |
|
|
(17,913 |
) |
|
|
(18,743 |
) |
Total |
|
$ |
37,824 |
|
|
$ |
33,933 |
|
|
$ |
3,891 |
|
|
$ |
83,044 |
|
|
$ |
93,500 |
|
|
$ |
(10,456 |
) |
(1) |
Other primarily includes homebuilding operations in non-reportable segments, 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 (in thousands, except percentages) |
September 30, 2024 |
|
December 31, 2023 |
||||
Notes payable |
$ |
3,463 |
|
|
$ |
75,627 |
|
Stockholders’/ Members’ equity |
|
372,360 |
|
|
|
208,903 |
|
Total capitalization |
$ |
375,823 |
|
|
$ |
284,530 |
|
Debt-to-book capitalization |
|
0.9 |
% |
|
|
26.6 |
% |
Notes payable |
$ |
3,463 |
|
|
$ |
75,627 |
|
Less: cash and cash equivalents |
|
23,716 |
|
|
|
19,777 |
|
Net debt |
|
(20,253 |
) |
|
|
55,850 |
|
Stockholders’/ Members’ equity |
|
372,360 |
|
|
|
208,903 |
|
Total net capitalization |
$ |
352,107 |
|
|
$ |
264,753 |
|
Net debt-to-net book capitalization |
|
(5.8 |
)% |
|
|
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 September 30, |
|
Nine months ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
2023 |
|||||||||
Net income |
$ |
37,824 |
|
$ |
33,933 |
|
$ |
83,044 |
$ |
93,500 |
|||||
Provision for income taxes |
|
1,761 |
|
|
|
— |
|
|
|
3,814 |
|
|
— |
|
|
Income before income taxes |
|
39,585 |
|
|
|
33,933 |
|
|
|
86,858 |
|
|
93,500 |
|
|
Tax-effected adjustments(1) |
|
9,710 |
|
|
|
8,324 |
|
|
|
21,306 |
|
|
22,936 |
|
|
Adjusted net income |
$ |
29,875 |
|
|
$ |
25,609 |
|
|
$ |
65,552 |
|
$ |
70,564 |
|
|
(1) |
For the three and nine months ended September 30, 2024 and 2023, our tax expenses assumes a |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241111261245/en/
Investor Relations
Joe Thomas
investors@smithdouglas.com
Source: Smith Douglas Homes Corp.
FAQ
What was Smith Douglas Homes (SDHC) revenue in Q3 2024?
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