United Homes Group, Inc. Reports 2024 Second Quarter Results
United Homes Group (NASDAQ: UHG) reported Q2 2024 results with $109.4 million in revenue from closing 337 homes, averaging $341,000 per home. Net income was $28.6 million ($0.50 per diluted share), influenced by a $32.1 million change in fair value of derivative liabilities. The company had 323 net new home orders, slightly down from 341 in Q2 2023. Gross profit margin decreased to 17.9% from 19.6% due to various costs including acquisitions and workforce reduction.
SG&A expenses were 17.9% of revenues, impacted by stock-based compensation and severance costs. Adjusted EBITDA was $7.7 million, down from $13.1 million in Q2 2023. The company ended Q2 2024 with $80.4 million in liquidity, including $24.9 million in cash.
For the first six months of 2024, revenue was $210.3 million, with net income of $53.6 million ($0.93 per diluted share). Home closings and net new orders declined slightly year-over-year. A conference call for investors will be held on August 8, 2024.
United Homes Group (NASDAQ: UHG) ha riportato i risultati del secondo trimestre 2024 con ricavi di 109,4 milioni di dollari dalla chiusura di 337 abitazioni, con una media di 341.000 dollari per abitazione. Il reddito netto è stato di 28,6 milioni di dollari (0,50 dollari per azione diluita), influenzato da un cambiamento di 32,1 milioni di dollari nel valore equo delle passività derivati. L'azienda ha registrato 323 nuovi ordini netti di abitazioni, in leggero calo rispetto ai 341 del secondo trimestre 2023. Il margine di profitto lordo è sceso al 17,9% rispetto al 19,6% a causa di vari costi, tra cui acquisizioni e riduzioni della forza lavoro.
Le spese SG&A sono state il 17,9% dei ricavi, influenzate da compensi basati su azioni e costi di licenziamento. L'EBITDA rettificato è stato di 7,7 milioni di dollari, in diminuzione rispetto ai 13,1 milioni del secondo trimestre 2023. L'azienda ha chiuso il secondo trimestre 2024 con 80,4 milioni di dollari in liquidità, di cui 24,9 milioni in contante.
Per i primi sei mesi del 2024, i ricavi sono stati di 210,3 milioni di dollari, con un reddito netto di 53,6 milioni di dollari (0,93 dollari per azione diluita). Le chiusure di abitazioni e i nuovi ordini netti sono diminuiti leggermente rispetto all'anno precedente. Una conference call per gli investitori si terrà l'8 agosto 2024.
United Homes Group (NASDAQ: UHG) reportó resultados del segundo trimestre de 2024 con ingresos de 109.4 millones de dólares por el cierre de 337 casas, promediando 341,000 dólares por casa. Los ingresos netos fueron de 28.6 millones de dólares (0.50 dólares por acción diluida), influenciados por un cambio de 32.1 millones de dólares en el valor razonable de las obligaciones derivadas. La empresa tuvo 323 nuevos pedidos netos de casas, ligeramente por debajo de los 341 en el segundo trimestre de 2023. El margen de utilidad bruta disminuyó al 17.9% desde el 19.6% debido a diversos costos, incluyendo adquisiciones y reducción de personal.
Los gastos SG&A fueron del 17.9% de los ingresos, afectados por compensación basada en acciones y costos de despido. El EBITDA ajustado fue de 7.7 millones de dólares, en comparación con los 13.1 millones en el segundo trimestre de 2023. La empresa finalizó el segundo trimestre de 2024 con 80.4 millones de dólares en liquidez, de los cuales 24.9 millones en efectivo.
En los primeros seis meses de 2024, los ingresos fueron de 210.3 millones de dólares, con un ingreso neto de 53.6 millones de dólares (0.93 dólares por acción diluida). Los cierres de casas y los nuevos pedidos netos disminuyeron ligeramente interanualmente. Se llevará a cabo una llamada de conferencia para inversores el 8 de agosto de 2024.
United Homes Group (NASDAQ: UHG)는 2024년 2분기 결과를 보고하며 3억 4천만 달러에 해당하는 337채의 주택 매각을 통해 1억 9천4백만 달러의 수익을 올렸습니다. 즉, 주택당 평균 34만1천 달러의 수익을 기록했습니다. 순수익은 2천8백만 달러(희석주당 0.50 달러)로, 파생부채의 공정가치 변동에 따라 3천2백만 달러의 영향을 받았습니다. 신규 주택 주문은 323건으로, 2023년 2분기의 341건에 비해 다소 감소했습니다. 총 이익률은 19.6%에서 17.9%로 감소하였으며, 이는 인수와 인력 감소 등의 다양한 비용에 기인합니다.
판매비와 관리비(SG&A)는 총 수익의 17.9%를 차지하며, 주식 보상과 퇴직 비용의 영향을 받았습니다. 조정된 EBITDA는 7천7백만 달러로, 2023년 2분기의 1억 3천1백만 달러에서 감소했습니다. 회사는 2024년 2분기를 마감하며 8천4백만 달러의 유동성을 보유하고 있습니다. 현금으로는 2천4백9십만 달러가 포함됩니다.
2024년 상반기 동안 수익은 2억 1천3백만 달러였으며, 순수익은 5천3백6십만 달러(희석주당 0.93 달러)였습니다. 주택 매각과 신규 주문은 전년 대비 다소 감소했습니다. 투자자 대상 컨퍼런스 콜이 2024년 8월 8일에 개최될 예정입니다.
United Homes Group (NASDAQ: UHG) a annoncé les résultats du deuxième trimestre 2024 avec un chiffre d'affaires de 109,4 millions de dollars provenant de la clôture de 337 maisons, ce qui représente une moyenne de 341 000 dollars par maison. Le revenu net était de 28,6 millions de dollars (0,50 dollar par action diluée), influencé par un changement de 32,1 millions de dollars dans la juste valeur des passifs dérivés. L'entreprise a enregistré 323 nouvelles commandes nettes de maisons, légèrement en baisse par rapport à 341 au deuxième trimestre 2023. La marge bénéficiaire brute a diminué à 17,9 % contre 19,6 % en raison de divers coûts, y compris les acquisitions et les réductions de personnel.
Les dépenses SG&A représentaient 17,9 % des revenus, impactées par des compensations en actions et des coûts de licenciement. L'EBITDA ajusté s'élevait à 7,7 millions de dollars, en baisse par rapport à 13,1 millions de dollars au deuxième trimestre 2023. L'entreprise a terminé le deuxième trimestre 2024 avec une liquidité de 80,4 millions de dollars, dont 24,9 millions de dollars en liquidités.
Pour les six premiers mois de 2024, les revenus s'élevaient à 210,3 millions de dollars, avec un revenu net de 53,6 millions de dollars (0,93 dollar par action diluée). Les clôtures de maisons et les nouvelles commandes nettes ont légèrement diminué par rapport à l'année précédente. Un appel de conférence pour les investisseurs se tiendra le 8 août 2024.
United Homes Group (NASDAQ: UHG) berichtete über die Ergebnisse des zweiten Quartals 2024 mit einem Umsatz von 109,4 Millionen Dollar aus dem Abschluss von 337 Häusern, was durchschnittlich 341.000 Dollar pro Haus entspricht. Der Nettogewinn betrug 28,6 Millionen Dollar (0,50 Dollar pro verwässerter Aktie) und wurde durch eine Änderung im fairen Wert der derivativen Verbindlichkeiten in Höhe von 32,1 Millionen Dollar beeinflusst. Das Unternehmen hatte 323 netto neue Hausbestellungen, was einen leichten Rückgang gegenüber 341 im zweiten Quartal 2023 darstellt. Die Bruttomarge sank von 19,6% auf 17,9% aufgrund verschiedener Kosten, einschließlich Übernahmen und Personalabbau.
Die SG&A-Ausgaben waren 17,9% der Umsätze, beeinflusst durch aktienbasierte Vergütung und Abfindungskosten. Das bereinigte EBITDA betrug 7,7 Millionen Dollar, ein Rückgang gegenüber 13,1 Millionen Dollar im zweiten Quartal 2023. Das Unternehmen schloss das zweite Quartal 2024 mit 80,4 Millionen Dollar an Liquidität ab, einschließlich 24,9 Millionen Dollar in Bar.
In den ersten sechs Monaten des Jahres 2024 betrugen die Einnahmen 210,3 Millionen Dollar, mit einem Nettogewinn von 53,6 Millionen Dollar (0,93 Dollar pro verwässerter Aktie). Die Hausabschlüsse und die Netto-Neubestellungen gingen gegenüber dem Vorjahr leicht zurück. Ein Conference Call für Investoren wird am 8. August 2024 stattfinden.
- Average sale price increased by 8.9% to $341,000.
- Net income for 1H 2024 improved to $53.6 million from $40.9 million in 1H 2023.
- Revenue in Q2 2024 declined to $109.4 million from $122.1 million in Q2 2023.
- Net income in Q2 2024 dropped to $28.6 million from $245.4 million in Q2 2023.
- Gross profit margin decreased to 17.9% from 19.6% in Q2 2023.
- Adjusted EBITDA declined to $7.7 million from $13.1 million in Q2 2023.
Insights
United Homes Group's Q2 2024 results present a mixed picture. While revenue decreased to
The company's land-light strategy, with
The Q2 results reflect the ongoing challenges in the housing market. The slight decrease in net new home orders (323 vs 341 in Q2 2023) suggests persistent demand headwinds, likely due to elevated mortgage rates and economic uncertainty. However, the company's focus on affordable segments in high-growth Southeastern markets could be a strategic advantage.
The increase in ASP, despite market pressures, is noteworthy and may indicate resilience in certain price points. The active community count of 59 and the substantial lot inventory position UHG to capitalize on potential market improvements. The company's use of sales incentives to maintain demand is a common industry tactic but warrants monitoring for its impact on margins. Overall, UHG's performance aligns with broader market trends of cautious optimism amidst challenging conditions.
UHG's financial position shows signs of strain but remains manageable. The available liquidity of
The increase in SG&A as a percentage of revenue to
Second Quarter 2024 Highlights
-
337 homes closed, resulting in revenue, net of sales discounts, of
$109.4 million -
Average sale price ("ASP") of production-built homes was approximately
compared to$341,000 in Q2 2023$313,000 - 323 net new home orders in Q2 2024 compared to 341 net new home orders in Q2 2023
- Active community count of 59 as of June 30, 2024
- Approximately 9,300 lots owned or controlled by the Company or affiliates as of June 30, 2024
-
Available liquidity of
as of June 30, 2024, comprised of$80.4 million of cash and$24.9 million of undrawn revolver capacity under our credit facility$55.5 million
Second Quarter 2024 Operating Results
For the second quarter 2024, net income was
“United Homes Group continued to execute on its long-term goals in the second quarter of acquiring lots in a capital efficient manner and building out its homebuilding platform in high-growth Southeastern markets, while selling and delivering homes that cater to the more affordable segments of the market,” said Michael Nieri, Chief Executive Officer of United Homes Group. “We delivered 337 homes in the second quarter of 2024, generating revenue of
Revenue, net of sales discounts, for the second quarter 2024 was
Gross profit as a percentage of revenue during the second quarter of 2024 was
Selling, general and administrative expenses ("SG&A") as a percentage of revenues was
Adjusted EBITDA4 during the second quarter 2024 was
Six Months Ended June 30, 2024 Operating Results
For the six months ended June 30, 2024, net income was
Revenues for the six months ended June 30, 2024 were
Gross profit percentage during the six months ended June 30, 2024 was
SG&A expenses as a percentage of revenues was
Adjusted EBITDA during the six months ended June 30, 2024 was
Earnings Conference Call
The Company will host a conference call via live webcast for investors and other interested parties beginning at 8:30 a.m. Eastern Time on Thursday, August 8, 2024. Interested parties can listen to the call live and view the related slides on the Internet under the Events & Presentations heading in the Investors section of the Company’s website at www.unitedhomesgroup.com. Listeners should log into the website at least fifteen minutes prior to the call to download and install any necessary audio software. The call can also be accessed toll free at 800-715-9871, or 646-307-1963 for international participants, Conference ID: 3266426. Those dialing in should do so at least ten minutes prior to the start of the call. An archive of the webcast will also be available on the Company’s website.
About United Homes Group, Inc.
UHG is a publicly traded residential builder headquartered in
UHG employs a land-light operating strategy with a focus on the design, construction and sale of entry-level, first move-up and second move-up single-family houses. UHG currently designs, builds and sells detached single-family homes, and, to a lesser extent, attached single-family homes, including duplex homes and town homes in three major market regions in
Under its land-light lot operating strategy, UHG controls its supply of finished building lots through lot option contracts with third parties, related parties, including its Land Development Affiliates, and land bank partners, which provide UHG with the right to purchase finished lots after they have been developed by the applicable third party or related party. This land-light operating strategy provides UHG with the ability to amass a pipeline of lots without the same risks associated with acquiring and developing raw land.
As UHG reviews potential geographic markets into which it could expand its homebuilding business, either organically or through strategic acquisitions, it intends to focus on selecting markets with positive population and employment growth trends, favorable migration patterns, attractive housing affordability, low state and local income taxes, and desirable lifestyle and weather characteristics.
Forward-Looking Statements
Certain statements contained in this earnings release, other than historical facts, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “seek,” “continue,” or other similar words.
Any such forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate, and beliefs of, and assumptions made by, our management and involve uncertainties that could significantly affect our financial results. Such statements include, but are not limited to, statements about our future financial performance, strategy, expansion plans, future operations, future operating results, estimated revenues, losses, projected costs, prospects, plans and objectives of management. Such statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those projected or anticipated, including, without limitation:
- disruption in the terms or availability of mortgage financing or an increase in the number of foreclosures in our markets;
- volatility and uncertainty in the credit markets and broader financial markets;
- a slowdown in the homebuilding industry or changes in population growth rates in our markets;
- shortages of, or increased prices for, labor, land or raw materials used in land development and housing construction, including due to changes in trade policies;
- material weaknesses in our internal control over financial reporting that we have identified, which, if not corrected, could affect the reliability of our consolidated financial statements;
- our ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition and the ability of the combined business to grow and manage growth profitably;
- our ability to execute our business model, including the success of our operations in new markets and our ability to expand into additional new markets;
- our ability to successfully integrate homebuilding operations that we acquire;
- delays in land development or home construction resulting from natural disasters, adverse weather conditions or other events outside our control;
- changes in applicable laws or regulations;
- the outcome of any legal proceedings;
- our ability to continue to leverage our land-light operating strategy;
- the ability to maintain the listing of our securities on Nasdaq or any other exchange; and
- the possibility that we may be adversely affected by other economic, business or competitive factors.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release and are not intended to be a guarantee of our performance in future periods. We cannot guarantee the accuracy of any such forward-looking statements contained in this release, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
For further information regarding other risks and uncertainties associated with our business, and important factors that could cause our actual results to vary materially from those expressed or implied in such forward-looking statements, please refer to the factors listed and described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the “Risk Factors” sections of the documents we file from time to time with the
UNITED HOMES GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
June 30, 2024 |
|
December 31, 2023 |
|||
ASSETS |
|
|
|
|||
Cash and cash equivalents |
$ |
24,915,782 |
|
$ |
56,671,471 |
|
Accounts receivable, net |
|
879,755 |
|
|
1,661,206 |
|
Inventories |
|
168,789,185 |
|
|
182,809,702 |
|
Real estate inventory not owned |
|
16,493,565 |
|
|
— |
|
Due from related party |
|
— |
|
|
88,000 |
|
Related party note receivable |
|
571,770 |
|
|
610,189 |
|
Income tax receivable |
|
3,164,174 |
|
|
— |
|
Lot deposits |
|
42,391,643 |
|
|
33,015,812 |
|
Investment in joint venture |
|
2,024,422 |
|
|
1,430,177 |
|
Property and equipment, net |
|
1,001,623 |
|
|
1,073,961 |
|
Operating right-of-use assets |
|
2,577,893 |
|
|
5,411,192 |
|
Deferred tax asset |
|
3,294,887 |
|
|
2,405,417 |
|
Prepaid expenses and other assets |
|
8,648,621 |
|
|
7,763,565 |
|
Goodwill |
|
9,279,676 |
|
|
5,706,636 |
|
Total Assets |
$ |
284,032,996 |
|
$ |
298,647,328 |
|
|
|
|
|
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|||
Accounts payable |
$ |
23,208,818 |
|
$ |
38,680,764 |
|
Homebuilding debt and other affiliate debt |
|
72,724,336 |
|
|
80,451,429 |
|
Liabilities from real estate inventory not owned |
|
12,949,555 |
|
|
— |
|
Due to related party |
|
75,048 |
|
|
— |
|
Operating lease liabilities |
|
2,781,000 |
|
|
5,565,320 |
|
Other accrued expenses and liabilities |
|
8,340,315 |
|
|
8,353,824 |
|
Income tax payable |
|
— |
|
|
1,128,804 |
|
Derivative liabilities |
|
69,167,963 |
|
|
127,610,943 |
|
Convertible note payable |
|
69,040,609 |
|
|
68,038,780 |
|
Total Liabilities |
|
258,287,644 |
|
|
329,829,864 |
|
|
|
|
|
|||
Commitments and contingencies |
|
|
|
|||
|
|
|
|
|||
Preferred Stock, |
|
— |
|
|
— |
|
Class A common stock, |
|
1,140 |
|
|
1,138 |
|
Class B common stock, |
|
3,697 |
|
|
3,697 |
|
Additional paid-in capital |
|
6,144,122 |
|
|
2,794,493 |
|
Retained earnings (Accumulated deficit) |
|
19,596,393 |
|
|
(33,981,864 |
) |
Total Stockholders' equity |
|
25,745,352 |
|
|
(31,182,536 |
) |
Total Liabilities and Stockholders' equity |
$ |
284,032,996 |
|
$ |
298,647,328 |
|
UNITED HOMES GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue, net of sales discounts |
$ |
109,420,037 |
|
|
$ |
122,091,629 |
|
|
$ |
210,258,282 |
|
|
$ |
216,918,331 |
|
Cost of sales |
|
89,842,341 |
|
|
|
98,174,149 |
|
|
|
174,586,539 |
|
|
|
176,223,078 |
|
Gross profit |
|
19,577,696 |
|
|
|
23,917,480 |
|
|
|
35,671,743 |
|
|
|
40,695,253 |
|
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expense |
|
19,613,484 |
|
|
|
16,335,318 |
|
|
|
36,667,983 |
|
|
|
33,022,719 |
|
Net (loss) income from operations |
|
(35,788 |
) |
|
|
7,582,162 |
|
|
|
(996,240 |
) |
|
|
7,672,534 |
|
|
|
|
|
|
|
|
|
||||||||
Other expense, net |
|
(3,582,115 |
) |
|
|
(2,295,330 |
) |
|
|
(5,544,960 |
) |
|
|
(2,092,615 |
) |
Equity in net earnings from investment in joint venture |
|
338,372 |
|
|
|
390,674 |
|
|
|
656,671 |
|
|
|
636,482 |
|
Change in fair value of derivative liabilities |
|
32,055,564 |
|
|
|
242,342,979 |
|
|
|
58,435,274 |
|
|
|
35,278,491 |
|
Income before taxes |
|
28,776,033 |
|
|
|
248,020,485 |
|
|
|
52,550,745 |
|
|
|
41,494,892 |
|
Income tax expense (benefit) |
|
136,000 |
|
|
|
2,657,726 |
|
|
|
(1,027,512 |
) |
|
|
636,461 |
|
Net income |
$ |
28,640,033 |
|
|
$ |
245,362,759 |
|
|
$ |
53,578,257 |
|
|
$ |
40,858,431 |
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted earnings per share |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.59 |
|
|
$ |
5.10 |
|
|
$ |
1.11 |
|
|
$ |
0.95 |
|
Diluted |
$ |
0.50 |
|
|
$ |
4.27 |
|
|
$ |
0.93 |
|
|
$ |
0.89 |
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted weighted-average number of shares |
|
|
|
|
|
|
|
||||||||
Basic |
|
48,373,812 |
|
|
|
48,122,141 |
|
|
|
48,368,200 |
|
|
|
42,877,744 |
|
Diluted |
|
63,372,936 |
|
|
|
57,874,253 |
|
|
|
63,443,456 |
|
|
|
48,800,225 |
|
UNITED HOMES GROUP, INC
GAAP TO NON-GAAP RECONCILIATIONS
(Unaudited)
Adjusted gross profit is a non-GAAP financial measure used by management of the Company as a supplemental measure in evaluating operating performance. The Company defines adjusted gross profit as gross profit excluding the effects of capitalized interest expensed in cost of sales, amortization included in homebuilding cost of sales (primarily adjustments resulting from the application of purchase accounting in connection with acquisitions), severance expense in cost of sales, abandoned project costs, and non-recurring remediation costs. The Company’s management believes this information is meaningful because it separates the impact that capitalized interest, purchase accounting adjustments, and non-recurring remediation costs directly expensed in cost of sales have on gross profit to provide a more specific measurement of the Company’s gross profits. However, because adjusted gross profit information excludes certain balances expensed in cost of sales, which have real economic effects and could impact the Company’s results of operations, the utility of adjusted gross profit information as a measure of the Company’s operating performance may be limited. Other companies may not calculate adjusted gross profit information in the same manner that the Company does. Accordingly, adjusted gross profit information should be considered only as a supplement to gross profit information as a measure of the Company’s performance.
The following table presents a reconciliation of adjusted gross profit to the GAAP financial measure of gross profit for each of the periods indicated.
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue, net of sales discounts |
$ |
109,420,037 |
|
|
$ |
122,091,629 |
|
|
$ |
210,258,282 |
|
|
$ |
216,918,331 |
|
Cost of sales |
|
89,842,341 |
|
|
|
98,174,149 |
|
|
|
174,586,539 |
|
|
|
176,223,078 |
|
Gross profit |
$ |
19,577,696 |
|
|
$ |
23,917,480 |
|
|
$ |
35,671,743 |
|
|
$ |
40,695,253 |
|
Interest expense in cost of sales |
|
1,659,089 |
|
|
|
2,159,967 |
|
|
|
5,172,108 |
|
|
|
4,546,799 |
|
Amortization in homebuilding cost of sales(a) |
|
912,837 |
|
|
|
— |
|
|
|
1,861,173 |
|
|
|
— |
|
Severance expense in cost of sales |
|
324,540 |
|
|
|
— |
|
|
|
324,540 |
|
|
|
— |
|
Abandoned project costs |
|
320,000 |
|
|
|
— |
|
|
|
320,000 |
|
|
|
— |
|
Non-recurring remediation costs |
|
50,962 |
|
|
|
— |
|
|
|
109,422 |
|
|
|
— |
|
Adjusted gross profit |
$ |
22,845,124 |
|
|
$ |
26,077,447 |
|
|
$ |
43,458,986 |
|
|
$ |
45,242,052 |
|
Gross profit %(b) |
|
17.9 |
% |
|
|
19.6 |
% |
|
|
17.0 |
% |
|
|
18.8 |
% |
Adjusted gross profit %(b) |
|
20.9 |
% |
|
|
21.4 |
% |
|
|
20.7 |
% |
|
|
20.9 |
% |
______________________________
(a) Represents expense recognized resulting from purchase accounting adjustments
(b) Calculated as a percentage of revenue
UNITED HOMES GROUP, INC
GAAP TO NON-GAAP RECONCILIATIONS
(Unaudited)
Earnings before interest, taxes, depreciation and amortization, or EBITDA, and adjusted EBITDA are supplemental non-GAAP financial measures used by management of the Company. The Company defines EBITDA as net income before (i) capitalized interest expensed in cost of sales, (ii) interest expensed in other (expense) income, net, (iii) depreciation and amortization, and (iv) taxes. The Company defines adjusted EBITDA as EBITDA before stock-based compensation expense, transaction cost expense, severance expense, abandoned project costs, non-recurring remediation costs, amortization included in homebuilding cost of sales (adjustments resulting from the application of purchase accounting in connection with acquisitions), change in fair value of derivative liabilities, and non-recurring loss on disposal of leasehold improvements. Management of the Company believes EBITDA and adjusted EBITDA are useful because they provide a more effective evaluation of UHG’s operating performance and allow comparison of UHG’s results of operations from period to period without regard to UHG’s financing methods or capital structure or other items that impact comparability of financial results from period to period such as fluctuations in interest expense or effective tax rates, levels of depreciation or amortization, or unusual items. EBITDA and adjusted EBITDA should not be considered as alternatives to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. UHG’s computations of EBITDA and adjusted EBITDA may not be comparable to EBITDA or adjusted EBITDA of other companies.
The following table presents a reconciliation of EBITDA and adjusted EBITDA 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 |
$ |
28,640,033 |
|
|
$ |
245,362,759 |
|
|
$ |
53,578,257 |
|
|
$ |
40,858,431 |
|
Interest expense in cost of sales |
|
1,659,089 |
|
|
|
2,159,967 |
|
|
|
5,172,108 |
|
|
|
4,546,799 |
|
Interest expense in other expense, net |
|
3,578,101 |
|
|
|
3,419,309 |
|
|
|
5,720,293 |
|
|
|
3,419,309 |
|
Depreciation and amortization |
|
476,252 |
|
|
|
251,846 |
|
|
|
926,294 |
|
|
|
466,776 |
|
Taxes |
|
217,995 |
|
|
|
2,745,736 |
|
|
|
(904,027 |
) |
|
|
637,844 |
|
EBITDA |
$ |
34,571,470 |
|
|
$ |
253,939,617 |
|
|
$ |
64,492,925 |
|
|
$ |
49,929,159 |
|
Stock-based compensation expense |
|
1,840,127 |
|
|
|
410,530 |
|
|
|
3,350,091 |
|
|
|
4,909,686 |
|
Transaction cost expense |
|
515,891 |
|
|
|
1,102,094 |
|
|
|
1,740,904 |
|
|
|
2,066,118 |
|
Severance expense |
|
1,504,416 |
|
|
|
— |
|
|
|
1,504,416 |
|
|
|
— |
|
Abandoned project costs |
|
320,000 |
|
|
|
— |
|
|
|
320,000 |
|
|
|
— |
|
Non-recurring remediation costs |
|
50,962 |
|
|
|
— |
|
|
|
109,422 |
|
|
|
— |
|
Amortization in homebuilding cost of sales(b) |
|
912,837 |
|
|
|
— |
|
|
|
1,861,173 |
|
|
|
— |
|
Change in fair value of derivative liabilities |
|
(32,055,564 |
) |
|
|
(242,342,979 |
) |
|
|
(58,435,274 |
) |
|
|
(35,278,491 |
) |
Adjusted EBITDA |
$ |
7,660,139 |
|
|
$ |
13,109,262 |
|
|
$ |
14,943,657 |
|
|
$ |
21,626,472 |
|
EBITDA margin(a) |
|
31.6 |
% |
|
|
208.0 |
% |
|
|
30.7 |
% |
|
|
23.0 |
% |
Adjusted EBITDA margin(a) |
|
7.0 |
% |
|
|
10.7 |
% |
|
|
7.1 |
% |
|
|
10.0 |
% |
______________________________
(a) Calculated as a percentage of revenue
(b) Represents expense recognized resulting from purchase accounting adjustments
UNITED HOMES GROUP, INC
GAAP TO NON-GAAP RECONCILIATIONS
Continued
Adjusted selling, general and administrative expense, or adjusted SG&A, is a supplemental non-GAAP financial measure used by management of the Company. UHG defines adjusted SG&A as SG&A, excluding the effects of stock-based compensation expense, transaction cost expense, and severance expense included in SG&A. Management of UHG believes adjusted SG&A provides useful information to investors because it enables an alternative assessment of the Company's operating results in a manner that is focused on its operating performance.
The following table presents a reconciliation of Adjusted SG&A to the GAAP financial measure of SG&A for the three and six months ended June 30, 2024.
|
Three Months
|
|
Six Months
|
||||
|
|
2024 |
|
|
|
2024 |
|
Selling, general and administrative expense |
$ |
19,613,484 |
|
|
$ |
36,667,983 |
|
Stock-based compensation expense |
|
1,840,127 |
|
|
|
3,350,091 |
|
Transaction cost expense |
|
515,891 |
|
|
|
1,740,904 |
|
Severance expense in SG&A |
|
1,179,876 |
|
|
|
1,179,876 |
|
Adjusted SG&A |
$ |
16,077,590 |
|
|
$ |
30,397,112 |
|
SG&A %(a) |
|
17.9 |
% |
|
|
17.4 |
% |
Adjusted SG&A %(a) |
|
14.7 |
% |
|
|
14.5 |
% |
______________________________
(a) Calculated as a percentage of revenue
UNITED HOMES GROUP, INC
GAAP TO NON-GAAP RECONCILIATIONS
Continued
Adjusted book value is a supplemental non-GAAP financial measure used by management of the Company. UHG defines adjusted book value as total stockholders' equity (book value), excluding the effect of goodwill and derivative instruments. Management of UHG believes adjusted book value is useful to investors because it excludes the impact of purchase accounting and fair value adjustments on derivative instruments which are not expected to result in economic gain or loss.
The following table presents a reconciliation of adjusted book value to the GAAP financial measure of total stockholders' equity for the period indicated.
|
|
|
June 30, 2024 |
||
Total Stockholders' equity |
|
|
$ |
25,745,352 |
|
Contingent earnout liability |
61,558,579 |
|
|
||
Derivative private placement warrant liability |
2,106,331 |
|
|
||
Derivative public warrant liability |
5,261,250 |
|
|
||
Derivative stock option liability |
241,803 |
|
|
||
Total Derivative Liability |
|
|
|
69,167,963 |
|
Goodwill |
|
|
|
(9,279,676 |
) |
Adjusted Book Value |
|
|
$ |
85,633,639 |
|
UNITED HOMES GROUP, INC
OPERATIONAL METRICS BY MARKET
$’s in millions
|
|
Three Months Ended June 30, |
|
|
|
|
||||||
|
|
2024 |
|
2023 |
|
Period Over Period %
|
||||||
Market |
|
Net New
|
|
Closings |
|
Net New
|
|
Closings |
|
Net New
|
|
Closings |
Coastal |
|
62 |
|
48 |
|
39 |
|
67 |
|
59 % |
|
-28 % |
|
|
169 |
|
175 |
|
245 |
|
241 |
|
-31 % |
|
-27 % |
Upstate |
|
82 |
|
106 |
|
57 |
|
77 |
|
44 % |
|
38 % |
|
|
10 |
|
8 |
|
— |
|
— |
|
NM |
|
NM |
Total |
|
323 |
|
337 |
|
341 |
|
385 |
|
-5 % |
|
-12 % |
|
|
Six Months Ended June 30, |
|
|
|
|
||||||
|
|
2024 |
|
2023 |
|
Period Over Period %
|
||||||
Market |
|
Net New
|
|
Closings |
|
Net New
|
|
Closings |
|
Net New
|
|
Closings |
Coastal |
|
130 |
|
93 |
|
109 |
|
138 |
|
19 % |
|
-33 % |
|
|
378 |
|
325 |
|
442 |
|
417 |
|
-14 % |
|
-22 % |
Upstate |
|
185 |
|
218 |
|
179 |
|
158 |
|
3 % |
|
38 % |
|
|
14 |
|
12 |
|
— |
|
— |
|
NM |
|
NM |
Total |
|
707 |
|
648 |
|
730 |
|
713 |
|
-3 % |
|
-9 % |
|
|
As of June 30,
|
|
As of December 31,
|
|
Period Over Period %
|
||||||
Market |
|
Backlog
|
|
Backlog
|
|
Backlog
|
|
Backlog
|
|
Backlog
|
|
Backlog
|
Coastal |
|
52 |
|
|
|
14 |
|
|
|
271 % |
|
331 % |
|
|
125 |
|
42.4 |
|
72 |
|
23.4 |
|
74 % |
|
81 % |
Upstate |
|
66 |
|
18.8 |
|
100 |
|
28.1 |
|
-34 % |
|
-33 % |
|
|
5 |
|
1.9 |
|
3 |
|
1.9 |
|
67 % |
|
— % |
Total |
|
248 |
|
|
|
189 |
|
|
|
31 % |
|
41 % |
______________________________
NM - Not Meaningful
1 Adjusted book value is a non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures.”
2 Adjusted gross profit percentage is a non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures.”
3 Adjusted SG&A is a non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures.”
4 Adjusted EBITDA is a non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures.”
5 Backlog inventory consists of homes that are under a sales contract but have not closed. Backlog may be impacted by customer cancellations.
6 Backlog value is calculated as the total contract value of homes in backlog.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808031264/en/
Investor Relations Contact:
Drew Mackintosh
drew@mackintoshir.com
Mobile: 310-924-9036
Media Contact:
Erin Reeves McGinnis
erinreevesmcginnis@unitedhomesgroup.com
Phone: 844-766-4663
Source: United Homes Group, Inc.
FAQ
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