United Homes Group, Inc. Reports Fourth Quarter and Full Year 2023 Results
- Increased home closings and revenue in Q4 2023 compared to Q4 2022.
- ASP of production-built homes saw an increase to $320,000 in Q4 2023.
- Acquired Rosewood Communities and Creekside Custom Homes to expand market presence.
- Net loss of $66.6 million in Q4 2023 due to changes in fair value of derivative liabilities.
- Adjusted book value stood at $90.7 million as of December 31, 2023.
- Revenues for fiscal year 2023 were $421.5 million with 1,383 homes closed.
- Gross profit percentage decreased in fiscal year 2023 due to sales incentives and higher lumber costs.
- Adjusted EBITDA for fiscal year 2023 was $40.5 million, down from $82.8 million in fiscal year 2022.
- Net loss of $66.6 million in Q4 2023 due to changes in fair value of derivative liabilities.
- Gross profit percentage decreased in fiscal year 2023.
- Adjusted EBITDA for fiscal year 2023 was lower than in fiscal year 2022.
Insights
The reported net loss of $66.6 million for the fourth quarter of 2023, primarily driven by a non-cash expense related to the change in fair value of derivative liabilities, is a significant deviation from the net income of $10.9 million in the same quarter of the previous year. This loss, despite being non-cash, may raise concerns among investors regarding the volatility of earnings and the impact of accounting for derivative instruments on the company's financial statements.
The increase in the average sale price (ASP) of production-built homes to approximately $320,000, up from $300,000 in Q4 2022, indicates a positive pricing power in the market. However, the company's gross profit margin dipped slightly from 18.8% to 18.5%, suggesting potential pressure on profitability. Investors will need to monitor whether this trend continues, as it could affect the company's ability to maintain margins in a competitive environment.
The expansion into new markets and acquisitions, such as those of Rosewood Communities and Creekside Custom Homes, suggest a strategic growth focus. However, the costs associated with these acquisitions and their integration into the company's operations could have short-term financial implications that need to be considered alongside the potential long-term benefits of market expansion.
The reported growth in net new home orders, with a year-over-year increase of 8% in Q4 2023 and 7.4% in the first two months of 2024, indicates a resilient demand for the company's homes despite a challenging macroeconomic environment characterized by higher interest rates. This is a positive signal for the company's market position and product offering.
United Homes Group's strategy of maintaining a 'land-light' operating model is particularly relevant in the context of the real estate industry, where managing inventory and capital expenditure is critical for financial stability. The company's active community count and lots owned or controlled provide insight into its potential to generate future revenue, but also necessitate careful management to avoid overexposure to market downturns.
The liquidity position of $81.1 million, with $56.7 million in cash and $24.4 million in undrawn revolver capacity, offers the company a buffer to navigate short-term challenges. However, this needs to be balanced against the financial commitments arising from business acquisitions and potential fluctuations in the housing market.
The change in fair value of derivative liabilities is a complex financial and legal area that significantly impacted United Homes Group's earnings. The fluctuations in stock price during the measurement period and the associated accounting treatment as per GAAP standards highlight the intricacies of financial reporting and the importance of transparent disclosure for investors. The earnout consideration tied to stock price hurdles reflects a contractual agreement that may have broader implications for shareholder value and must be closely scrutinized for its potential impact on the company's financial health and strategic direction.
Fourth Quarter 2023 Highlights
-
387 homes closed, resulting in revenue, net of sales discounts, of
$116.8 million -
Average sale price ("ASP") of production-built homes was approximately
$320,000 $300,000 - 294 net new home orders in Q4 2023 compared to 271 net new home orders in Q4 2022 and 260 net new home orders in January and February 2024.
- Active community count of 61 as of December 31, 2023
- Approximately 9,000 lots owned or controlled by the Company or affiliates as of December 31, 2023
-
Expanded presence in the
Greenville andClemson, South Carolina markets through acquisition of Rosewood Communities -
In January 2024, acquired the homebuilding business and assets of Creekside Custom Homes, LLC, expanding presence in the
Myrtle Beach, South Carolina market which added approximately 1,000 lots under control -
Available liquidity of
$81.1 million $56.7 million $24.4 million
Fiscal Year Ended December 31, 2023 Highlights
- Closed Business Combination resulting in publicly-traded southeast focused homebuilder with a “land-light” operating model
- Expanded into new and existing markets through the acquisitions of Herring Homes and Rosewood Communities
-
1,383 homes closed, resulting in revenue, net of sales discounts, of
$421.5 million -
ASP of production-built homes increased to
$316,000 $296,000 - 1,296 net new home orders in 2023 compared to 1,259 net new orders in 2022
Fourth Quarter 2023 Operating Results
For the fourth quarter 2023, net loss was
______________________________
1 Adjusted book value is a non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures.”
"In the fourth quarter of 2023, UHG saw orders increase
Mr. Nieri continued, "Additionally, in January of 2024 we closed our third acquisition in just nine months of becoming a public company, acquiring Creekside Custom Homes in
Revenues for the fourth quarter 2023 were
Gross profit percentage during the fourth quarter of 2023 was
Selling, general and administrative expenses ("SG&A") as a percentage of revenues was
Adjusted EBITDA4 during the fourth quarter 2023 was
______________________________
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.”
Fiscal Year Ended December 31, 2023 Operating Results
For the fiscal year ended December 31, 2023, net income was
For the fiscal year ended December 31, 2023, revenues were
Gross profit percentage for the fiscal year ended December 31, 2023 was
Adjusted EBITDA for the fiscal year ended December 31, 2023 was
Business Acquisitions
Rosewood Communities Acquisition
On October 25, 2023, the Company completed the acquisition of
Creekside Custom Homes Acquisition
On January 26, 2024, the Company completed the acquisition of the selected assets of Creekside Custom Homes, LLC (“Creekside”) (the “Creekside Acquisition”) for
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, March 14, 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 888-259-6580, or 206-962-3782 for international participants, Conference ID: 31670510. 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 purchase agreements with third parties including its Land Development Affiliates, which provide UHG with the right to purchase finished lots after they have been developed by the applicable third 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 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. |
||||||
CONSOLIDATED BALANCE SHEETS |
||||||
DECEMBER 31, 2023 AND DECEMBER 31, 2022 (UNAUDITED) |
||||||
|
December 31, 2023 |
|
December 31, 2022(2) |
|||
ASSETS |
|
|
|
|||
Cash and cash equivalents |
$ |
56,671,471 |
|
|
$ |
12,238,835 |
Accounts receivable, net |
|
1,661,206 |
|
|
|
1,976,334 |
Inventories: |
|
|
|
|||
Homes under construction and finished homes |
|
147,582,130 |
|
|
|
163,997,487 |
Developed lots and land under development |
|
35,227,572 |
|
|
|
16,205,448 |
Due from related party |
|
88,000 |
|
|
|
1,437,235 |
Related party note receivable |
|
610,189 |
|
|
|
— |
Lot purchase agreement deposits |
|
33,015,812 |
|
|
|
3,804,436 |
Investment in Joint Venture |
|
1,430,177 |
|
|
|
186,086 |
Deferred tax asset |
|
2,405,417 |
|
|
|
— |
Property and equipment, net |
|
1,073,961 |
|
|
|
1,385,698 |
Operating right-of-use assets |
|
5,411,192 |
|
|
|
1,001,277 |
Prepaid expenses and other assets |
|
7,763,565 |
|
|
|
6,112,044 |
Goodwill |
|
5,706,636 |
|
|
|
— |
Total Assets |
$ |
298,647,328 |
|
|
$ |
208,344,880 |
|
|
|
|
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|||
Accounts payable |
$ |
38,680,764 |
|
|
$ |
22,077,240 |
Homebuilding debt and other affiliate debt |
|
80,451,429 |
|
|
|
120,797,006 |
Operating lease liabilities |
|
5,565,320 |
|
|
|
1,001,277 |
Other accrued expenses and liabilities |
|
8,353,824 |
|
|
|
5,465,321 |
Income tax payable |
|
1,128,804 |
|
|
|
— |
Derivative liabilities |
|
127,610,943 |
|
|
|
— |
Convertible note payable |
|
68,038,780 |
|
|
|
— |
Total Liabilities |
|
329,829,864 |
|
|
|
149,340,844 |
|
|
|
|
|||
Commitments and contingencies (Note 13) |
|
|
|
|||
|
|
|
|
|||
Preferred Stock, |
|
— |
|
|
|
— |
Class A common stock, |
|
1,138 |
|
|
|
37 |
Class B common stock, |
|
3,697 |
|
|
|
3,697 |
Additional paid-in capital (1) |
|
2,794,493 |
|
|
|
1,422,630 |
Retained Earnings (1) |
|
(33,981,864 |
) |
|
|
57,577,672 |
Total Stockholders' equity (1) |
|
(31,182,536 |
) |
|
|
59,004,036 |
Total Liabilities and Stockholders' equity |
$ |
298,647,328 |
|
|
$ |
208,344,880 |
| (1) | Retroactively restated as of December 31, 2022 for the Reverse Recapitalization as a result of the Business Combination |
| (2) |
The Consolidated Balance Sheet as of December 31, 2022 (“Legacy UHG financial statements”) has been prepared from Legacy UHG’s historical financial records and reflect the historical financial position of Legacy UHG for the period presented on a carve-out basis in accordance with generally accepted accounting principles in |
UNITED HOMES GROUP, INC. |
||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||
THREE MONTHS AND FISCAL YEAR ENDED DECEMBER 31, 2023 AND 2022 (UNAUDITED) |
||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
Revenue, net of sales discounts |
$ |
116,827,679 |
|
|
$ |
115,094,175 |
|
|
$ |
421,474,101 |
|
|
$ |
477,045,949 |
Cost of sales |
|
95,207,607 |
|
|
|
93,508,079 |
|
|
|
341,748,481 |
|
|
|
358,238,703 |
Gross profit |
|
21,620,072 |
|
|
|
21,586,096 |
|
|
|
79,725,620 |
|
|
|
118,807,246 |
|
|
|
|
|
|
|
|
|||||||
Selling, general and administrative expense |
|
18,442,012 |
|
|
|
10,793,480 |
|
|
|
65,094,444 |
|
|
|
49,685,730 |
Net income from operations |
$ |
3,178,060 |
|
|
$ |
10,792,616 |
|
|
$ |
14,631,176 |
|
|
$ |
69,121,516 |
|
|
|
|
|
|
|
|
|||||||
Other income (expense), net |
|
(470,858 |
) |
|
|
(82,299 |
) |
|
|
(3,762,613 |
) |
|
|
230,692 |
Equity in net earnings from investment in joint venture |
|
313,686 |
|
|
|
186,086 |
|
|
|
1,244,091 |
|
|
|
137,086 |
Change in fair value of derivative liabilities |
|
(69,077,006 |
) |
|
|
— |
|
|
|
115,904,646 |
|
|
|
— |
(Loss) income before taxes |
$ |
(66,056,118 |
) |
|
$ |
10,896,403 |
|
|
$ |
128,017,300 |
|
|
$ |
69,489,294 |
Income tax expense |
|
584,716 |
|
|
|
— |
|
|
|
2,957,016 |
|
|
|
— |
Net (loss) income |
$ |
(66,640,834 |
) |
|
$ |
10,896,403 |
|
|
$ |
125,060,284 |
|
|
$ |
69,489,294 |
|
|
|
|
|
|
|
|
|||||||
Basic and diluted (loss)/earnings per share |
|
|
|
|
|
|
|
|||||||
Basic |
$ |
(1.38 |
) |
|
$ |
0.29 |
|
|
$ |
2.74 |
|
|
$ |
1.86 |
Diluted |
$ |
(1.38 |
) |
|
$ |
0.28 |
|
|
$ |
2.35 |
|
|
$ |
1.81 |
|
|
|
|
|
|
|
|
|||||||
Basic and diluted weighted-average number of shares (1) |
|
|
|
|
|
|
|
|||||||
Basic |
|
48,356,158 |
|
|
|
37,347,347 |
|
|
|
45,639,431 |
|
|
|
37,347,347 |
Diluted |
|
48,356,158 |
|
|
|
39,171,098 |
|
|
|
55,768,890 |
|
|
|
38,452,827 |
| (1) | Retroactively restated for the three months and fiscal year ending December 31, 2022 for the Reverse Recapitalization as a result of the Business Combination |
UNITED HOMES GROUP, INC |
GAAP TO NON-GAAP RECONCILIATIONS |
THREE MONTHS AND FISCAL YEAR ENDED DECEMBER 31, 2023 and 2022 (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), 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 December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue, net of sales discounts |
$ |
116,827,679 |
|
|
$ |
115,094,175 |
|
|
$ |
421,474,101 |
|
|
$ |
477,045,949 |
|
Cost of sales |
|
95,207,607 |
|
|
|
93,508,079 |
|
|
|
341,748,481 |
|
|
|
358,238,703 |
|
Gross profit |
$ |
21,620,072 |
|
|
$ |
21,586,096 |
|
|
$ |
79,725,620 |
|
|
$ |
118,807,246 |
|
Interest expense in cost of sales |
|
3,307,853 |
|
|
|
2,288,665 |
|
|
|
9,385,970 |
|
|
|
5,455,230 |
|
Amortization in homebuilding cost of sales(a) |
|
442,231 |
|
|
|
— |
|
|
|
442,231 |
|
|
|
— |
|
Non-recurring remediation costs |
|
79,828 |
|
|
|
— |
|
|
|
527,155 |
|
|
|
— |
|
Adjusted gross profit |
$ |
25,449,984 |
|
|
$ |
23,874,761 |
|
|
$ |
90,080,976 |
|
|
$ |
124,262,476 |
|
Gross profit %(b) |
|
18.5 |
% |
|
|
18.8 |
% |
|
|
18.9 |
% |
|
|
24.9 |
% |
Adjusted gross profit %(b) |
|
21.8 |
% |
|
|
20.7 |
% |
|
|
21.4 |
% |
|
|
26.0 |
% |
______________________________
(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 |
THREE MONTHS AND FISCAL YEAR ENDED DECEMBER 31, 2023 and 2022 (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. UHG defines adjusted EBITDA as EBITDA before stock-based compensation expense, transaction cost expense, non-recurring loss on disposal of leasehold improvements, non-recurring remediation costs, amortization included in homebuilding cost of sales (adjustments resulting from the application of purchase accounting in connection with acquisitions), and change in fair value of derivative liabilities. 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 December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
(66,640,834 |
) |
|
$ |
10,896,403 |
|
|
$ |
125,060,284 |
|
|
$ |
69,489,294 |
|
Interest expense in cost of sales |
|
3,307,853 |
|
|
|
2,288,665 |
|
|
|
9,385,970 |
|
|
|
5,455,230 |
|
Interest expense in other (expense) income, net |
|
583,537 |
|
|
|
— |
|
|
|
6,042,358 |
|
|
|
— |
|
Depreciation and amortization |
|
369,085 |
|
|
|
211,671 |
|
|
|
1,217,778 |
|
|
|
759,712 |
|
Taxes |
|
704,506 |
|
|
|
281,242 |
|
|
|
3,108,748 |
|
|
|
229,224 |
|
EBITDA |
$ |
(61,675,853 |
) |
|
$ |
13,677,981 |
|
|
$ |
144,815,138 |
|
|
$ |
75,933,460 |
|
Stock-based compensation expense |
|
1,003,483 |
|
|
|
50,004 |
|
|
|
7,019,183 |
|
|
|
1,422,630 |
|
Transaction cost expense |
|
788,339 |
|
|
|
3,709,715 |
|
|
|
3,239,637 |
|
|
|
5,479,126 |
|
Non-recurring loss on disposal of leasehold improvements |
|
331,424 |
|
|
|
— |
|
|
|
331,424 |
|
|
|
— |
|
Non-recurring remediation costs |
|
79,828 |
|
|
|
— |
|
|
|
527,155 |
|
|
|
— |
|
Amortization in homebuilding cost of sales(a) |
|
442,231 |
|
|
|
— |
|
|
|
442,231 |
|
|
|
— |
|
Change in fair value of derivative liabilities |
|
69,077,006 |
|
|
|
— |
|
|
|
(115,904,646 |
) |
|
|
— |
|
Adjusted EBITDA |
$ |
10,046,458 |
|
|
$ |
17,437,700 |
|
|
$ |
40,470,122 |
|
|
$ |
82,835,216 |
|
EBITDA margin(b) |
|
(52.8 |
)% |
|
|
11.9 |
% |
|
|
34.4 |
% |
|
|
15.9 |
% |
Adjusted EBITDA margin(b) |
|
8.6 |
% |
|
|
15.2 |
% |
|
|
9.6 |
% |
|
|
17.4 |
% |
______________________________
(a) |
Represents expense recognized resulting from purchase accounting adjustments |
(b) |
Calculated as a percentage of revenue |
Adjusted selling, general and administrative expense, or adjusted SG&A, is a supplemental non-GAAP financial measure used by management of UHG. UHG defines adjusted SG&A as SG&A, excluding the effects of stock-based compensation expense and transaction cost expense. 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 months ended December 31, 2023.
|
Three Months Ended December 31, |
||
|
|
2023 |
|
Selling, general and administrative expense |
$ |
18,442,012 |
|
Stock-based compensation expense |
|
(1,003,483 |
) |
Transaction cost expense |
|
(788,339 |
) |
Adjusted SG&A |
$ |
16,650,190 |
|
SG&A %(a) |
|
15.8 |
% |
Adjusted SG&A %(a) |
|
14.3 |
% |
______________________________
| (a) | Calculated as a percentage of revenue |
Adjusted book value is a supplemental non-GAAP financial measure used by management of UHG. UHG defines adjusted book value as total stockholders' equity (book value), excluding the effect of derivative instruments and goodwill. Management of UHG believes adjusted book value is useful to investors because it excludes the impact of fair value adjustments on derivative instruments and goodwill 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.
|
|
December 31, 2023 |
||
Total stockholders' equity |
|
$ |
(31,182,536 |
) |
Contingent earnout liability |
|
|
115,566,762 |
|
Derivative private placement warrant liability |
|
|
3,292,996 |
|
Derivative public warrant liability |
|
|
8,336,925 |
|
Derivative stock option liability |
|
|
414,260 |
|
Total derivative liabilities |
|
|
127,610,943 |
|
Goodwill |
|
|
(5,706,636 |
) |
Adjusted book value |
|
$ |
90,721,771 |
|
UNITED HOMES GROUP, INC OPERATIONAL METRICS BY MARKET $’s in millions |
||||||||||||||
|
|
Three Months Ended December 31, |
|
|
|
|
||||||||
|
|
2023 |
|
2022 |
|
Period Over Period % Change |
||||||||
Market |
|
Net New
|
|
Closings |
|
Net New
|
|
Closings |
|
Net New
|
|
Closings |
||
Coastal |
|
19 |
|
28 |
|
35 |
|
78 |
|
-46 |
% |
|
-64 |
% |
|
|
158 |
|
253 |
|
166 |
|
238 |
|
-5 |
% |
|
6 |
% |
Upstate |
|
114 |
|
106 |
|
70 |
|
73 |
|
63 |
% |
|
45 |
% |
|
|
3 |
|
— |
|
— |
|
— |
|
NM |
|
|
NM |
|
Total |
|
294 |
|
387 |
|
271 |
|
389 |
|
8 |
% |
|
-1 |
% |
|
|
As of December 31,
|
|
As of December 31,
|
|
Period Over Period % Change |
||||||||||
Market |
|
Backlog
|
|
Backlog
|
|
Backlog
|
|
Backlog
|
|
Backlog
|
|
Backlog
|
||||
Coastal |
|
14 |
|
$ |
4.2 |
|
74 |
|
$ |
23.7 |
|
-81 |
% |
|
-82 |
% |
|
|
72 |
|
$ |
23.4 |
|
154 |
|
$ |
46.0 |
|
-53 |
% |
|
-49 |
% |
Upstate |
|
100 |
|
$ |
28.1 |
|
48 |
|
$ |
15.9 |
|
108 |
% |
|
77 |
% |
|
|
3 |
|
$ |
1.9 |
|
— |
|
$ |
— |
|
NM |
|
|
NM |
|
Total |
|
189 |
|
$ |
57.6 |
|
276 |
|
$ |
85.6 |
|
-32 |
% |
|
-33 |
% |
|
|
Fiscal Year Ended December 31, |
|
|
|
|
||||||||
|
|
2023 |
|
2022 |
|
Period Over Period % Change |
||||||||
Market |
|
Net New
|
|
Closings |
|
Net New
|
|
Closings |
|
Net New
|
|
Closings |
||
Coastal |
|
150 |
|
216 |
|
160 |
|
242 |
|
-6 |
% |
|
-11 |
% |
|
|
755 |
|
827 |
|
744 |
|
942 |
|
1 |
% |
|
-12 |
% |
Upstate |
|
388 |
|
340 |
|
355 |
|
421 |
|
9 |
% |
|
-19 |
% |
|
|
3 |
|
— |
|
— |
|
— |
|
NM |
|
|
NM |
|
Total |
|
1,296 |
|
1,383 |
|
1,259 |
|
1,605 |
|
3 |
% |
|
-14 |
% |
_____________________________
NM - Not Meaningful
5 Backlog inventory consists of homes that are under a sales contract but have not closed.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240313699244/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
How many homes closed in Q4 2023 for UHG?
What was the revenue generated in Q4 2023 for UHG?
What was the ASP of production-built homes in Q4 2023 for UHG?
How many net new home orders were there in Q4 2023 for UHG?
What acquisitions did UHG make to expand its market presence?
What was the net loss in Q4 2023 for UHG and why?
What was the revenue for fiscal year 2023 for UHG?
How many homes closed in fiscal year 2023 for UHG?
What was the gross profit percentage for fiscal year 2023 for UHG?
What was the adjusted EBITDA for fiscal year 2023 for UHG?
