Financial Data and Key Metrics Changes - Smith Douglas Homes reported a pretax income of $39.6 million, or $0.58 per diluted share, with home closing revenue rising 41% year-over-year to $277.8 million [6][14] - The gross margin for home sales was 26.5%, and SG&A expenses fell to 12.3% of revenue for the quarter [6][14] - The company finished the quarter with net income of $37.8 million and an effective tax rate of 4.4% [14] Business Line Data and Key Metrics Changes - The company achieved a record of 812 new home deliveries during the quarter [6] - The average sales price for closed homes was $342,000, with a backlog of 961 homes at an average selling price of $346,000 [16][14] - The SG&A expense ratio is projected to be between 13.5% and 14% for the full year, showing a slight improvement from previous guidance [18] Market Data and Key Metrics Changes - Demand trends remained healthy, driven by a lack of existing home inventory and strong local economies, although some hesitancy was noted in September and October due to anticipated interest rate changes and election outcomes [7][8] - The company expanded its presence in new markets, including Greenville, South Carolina, and continued to perform well in established markets like Atlanta and Alabama [9][8] Company Strategy and Development Direction - The company is focused on operational philosophies that include land banking and offering affordable homes, which are seen as key to long-term success [10] - Expansion efforts are deliberate, targeting markets with strong growth prospects, and the company aims to achieve delivery goals for 2024 and carry momentum into 2025 [11][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong balance sheet and the ability to gain market share despite challenges such as housing affordability and interest rate uncertainty [11][20] - The company anticipates 2025 closings to be between 3,000 and 3,250 homes, with a gross margin target of 25% [21][22] Other Important Information - The company ended the quarter with approximately $24 million in cash and no borrowings under its revolving credit facility, indicating a strong financial position [17] - The average lot cost increased to $85,000, representing 24.8% of revenue, with expectations for further increases in 2025 [27] Q&A Session Summary Question: How should the 2025 guidance be interpreted? - Management indicated that the guidance assumes a status quo market without major shifts, reflecting current conditions [24] Question: What is the expected community count ramp-up into 2025? - A 15% increase in community count is expected, with more communities coming online in the latter half of the year [26] Question: What are the average lot costs expected for 2025? - Average lot costs are projected to increase by $10,000 to $12,000 per lot, reaching mid-90s [27] Question: What are the expectations for incentives going forward? - Incentives are currently running just over 3%, with expectations for them to remain flat next year [29] Question: How is the M&A environment looking? - The company sees a healthy pipeline for M&A opportunities, although current market conditions may affect deal valuations [30] Question: What are the thoughts on order cadence post-election? - Management noted a slight improvement in traffic and appointments following the election, but conversions are still taking longer [34] Question: How is the mortgage joint venture expected to impact operations? - The joint venture aims to bring consistency across the platform and streamline the mortgage process for buyers [35] Question: What are the expectations for SG&A in 2025? - SG&A is expected to remain around 13% next year, with some increases due to new hires and expansion efforts [40]

Financial Performance - Home closing revenue for the three months ended September 30, 2024, was $277.835 million, a 40.5% increase from $197.638 million in the same period of 2023[40]. - Gross profit from home closings for the same period was $73.695 million, up 29.1% from $57.090 million year-over-year[40]. - The company reported a net income of $37.824 million for the three months ended September 30, 2024, compared to $33.933 million in the same period of 2023, representing an increase of 11.1%[40]. - Adjusted net income for the nine months ended September 30, 2024, was $11.965 million, compared to $93.500 million in the same period of 2023[40]. - Net income for the nine months ended September 30, 2024, was $83,044,000, compared to $93,500,000 for the same period in 2023, reflecting a decrease of approximately 11%[48]. - Net income for the three months ended September 30, 2024, increased by $3.9 million, or 11%, primarily due to a $16.6 million increase in home closing gross profit[187]. - Net income attributable to Smith Douglas Homes Corp. for Q3 2024 was $5.3 million, compared to $0 in Q3 2023[170]. Revenue and Sales Metrics - For the three months ended September 30, 2024, the company closed 812 homes, generating $277.8 million in home closing revenue, reflecting increases of 39% in homes closed and 41% in revenue compared to the same period last year[154]. - During the nine months ended September 30, 2024, the number of homes closed increased by 24%, and home closing revenue increased by 26% compared to the prior year[155]. - The company’s net new home orders increased by 6% for the three months ended September 30, 2024, with a contract value increase of 6% as well[154]. - Home closing revenue for Q3 2024 was $277.8 million, a 41% increase from $197.6 million in Q3 2023, driven by a 39% increase in home closings[170]. - For the nine months ended September 30, 2024, home closing revenue reached $688.0 million, up 26% from $547.3 million in the same period of 2023[171]. Cost and Expenses - Selling, general, and administrative costs for the three months ended September 30, 2024, were $34.137 million, up from $22.952 million in the same period of 2023, indicating a rise of 48.5%[40]. - Net income for the nine months ended September 30, 2024, decreased by $10.5 million, or 11%, primarily due to a $28.8 million increase in selling, general, and administrative costs[188]. - Interest expense increased by $0.1 million to $0.6 million for the three months ended September 30, 2024, and by $0.9 million to $1.9 million for the nine months ended September 30, 2024, primarily due to increased unused fees and amortization of deferred financing costs[181][182]. Assets and Inventory - Total assets increased to $460.050 million as of September 30, 2024, from $352.692 million at the end of 2023, reflecting a growth of 30.5%[38]. - Real estate inventory rose to $282.013 million as of September 30, 2024, compared to $213.104 million at the end of 2023, marking a 32.4% increase[38]. - The balance of Class A common shares was 8,846,154 as of September 30, 2024, unchanged from June 30, 2024[44]. - The Company had deposits of $80.2 million related to land option agreements as of September 30, 2024, up from $57.1 million as of December 31, 2023, reflecting a 40.0% increase[84]. Cash Flow and Financing - Cash flows from operating activities for the nine months ended September 30, 2024, provided $13,655,000, a significant decrease from $54,958,000 in the same period of 2023, indicating a decline of approximately 75%[48]. - The net cash provided by financing activities was $(5,936,000) for the period, compared to $1,512,000 previously[49]. - The company raised approximately $172.8 million in net proceeds from its IPO on January 16, 2024, after deducting underwriting discounts[217]. - The Amended Credit Facility has increased the aggregate principal amount of revolving credit commitments to $250.0 million and extends the maturity date to January 16, 2027[228]. Strategic Initiatives and Market Position - Future growth strategies include securing adequate inventory of lots and navigating potential risks in the housing market, as outlined in the forward-looking statements[32]. - The company operates a land-light business model, primarily targeting first-time and empty-nest homebuyers in several southeastern and southern U.S. markets[54]. - The company plans to utilize IPO proceeds to purchase newly issued LLC Interests for approximately $125.2 million and acquire additional LLC Interests from Continuing Equity Owners for $47.6 million[58]. - The company targets entry-level and empty-nest homebuyers, focusing on price points below FHA guidelines, which positions it well for future demand[159]. Operational Efficiency - The adjusted EBITDA margin for the period is not explicitly stated but is calculated based on the provided financial metrics, indicating a focus on operational efficiency[30]. - Adjusted home closing gross profit increased to $73,636,000 for the three months ended September 30, 2024, compared to $57,637,000 for the same period in 2023, reflecting a 27.7% increase[203]. - Adjusted EBITDA for the three months ended September 30, 2024, was $40,335,000, compared to $35,216,000 for the same period in 2023, reflecting a 14.5% margin[210]. Compliance and Regulatory - The Company is currently evaluating the impact of ASU 2023-09 on its financial statement disclosures, effective for annual periods beginning after January 1, 2025[77]. - The Company was in compliance with all covenants related to the Amended Credit Facility as of September 30, 2024[90].

Financial Performance - Home closings increased by 39% to 812 in Q3 2024 compared to Q3 2023[2] - Home closing revenue rose by 41% to $277.8 million in Q3 2024[2] - Gross margin for home closings was 26.5% in Q3 2024[2] - Net new home orders increased by 6% to 600 in Q3 2024[2] - Pretax income reached $39.6 million in Q3 2024[2] - Net income attributable to Smith Douglas Homes Corp. was $5.3 million in Q3 2024[6] - Net income for the three months ended September 30, 2024, was $37.824 million, compared to $33.933 million in the same period last year, reflecting a period-over-period increase of $3.891 million[16] - Adjusted net income for the three months ended September 30, 2024, is $29,875,000, compared to $25,609,000 for the same period in 2023, reflecting a year-over-year increase of 8.8%[24] - For the nine months ended September 30, 2024, adjusted net income is $65,552,000, down from $70,564,000 in the same period of 2023, indicating a decrease of 7.1%[24] - The company's income before income taxes for the three months ended September 30, 2024, is $39,585,000, up from $33,933,000 in the prior year[24] Operational Metrics - Active community count grew by 19% to 74 at the end of Q3 2024[2] - Total controlled lots increased by 54% to 17,878 year-over-year[2] - Homes under construction as of September 30, 2024, were 1,135, compared to 905 in the same period last year, indicating increased production capacity[15] - The backlog of homes at the end of September 30, 2024, was 961 homes with a contract value of $332.035 million, down from 1,042 homes valued at $350.439 million in 2023[14] - The cancellation rate for the three months ended September 30, 2024, was 11.4%, slightly up from 11.0% in the previous year[12] - The ASP of backlog homes as of September 30, 2024, was $346,000, compared to $336,000 in the previous year, indicating a 3% increase[14] - The total controlled lots as of September 30, 2024, increased to 17,878, up from 11,579 in the previous year, with optioned lots rising to 16,132 from 10,279[15] - Active communities at the end of September 30, 2024, totaled 74, up from 62 in the previous year, reflecting the company's market expansion efforts[12] Geographic Expansion - The company expanded its geographic presence into Greenville, SC, and continued to build infrastructure in Central Georgia and Chattanooga, TN[2] Debt and Capitalization - Cash position at the end of Q3 2024 was $24 million with zero borrowings under the credit facility[2] - As of September 30, 2024, the company's net debt-to-net book capitalization is (5.8)%, a significant improvement from 21.1% as of December 31, 2023[21] - The total debt decreased from $75,627,000 to $3,463,000, while stockholders' equity increased from $208,903,000 to $372,360,000[21] - The total capitalization increased from $284,530,000 as of December 31, 2023, to $375,823,000 as of September 30, 2024[21] - The net debt is reported as (20,253,000), indicating a strong cash position compared to total debt[21] Taxation - The provision for income taxes for the three months ended September 30, 2024, is $1,761,000, while there was no provision in the same period of 2023[24] - The company uses a 24.5% federal and state blended tax rate for tax-effected adjustments in calculating adjusted net income[24] - The company emphasizes that adjusted net income is a useful measure for evaluating operating performance and comparability to industry peers[23] Segment Performance - The company reported a significant increase in home closing revenue in the Houston segment, which rose by 739% to $86.108 million from $10.260 million in the previous year[13]

Financial Performance - Home closing revenue for the three months ended June 30, 2024, was $220.93 million, an increase of 21.7% compared to $181.52 million for the same period in 2023[19]. - Gross profit from home closings for the same period was $59.06 million, up from $52.70 million, reflecting a gross margin improvement[19]. - Net income for the three months ended June 30, 2024, was $24.73 million, compared to $30.74 million in the prior year, indicating a decrease of 19.5%[19]. - Adjusted net income attributable to Smith Douglas Homes Corp. for the six months ended June 30, 2024, was $6.62 million[19]. - Total revenue for the three months ended June 30, 2024, was $220.9 million, an increase from $181.5 million for the same period in 2023, representing a growth of 21.7%[67]. - Net income for the six months ended June 30, 2024, was $45,220,000, a decrease of 24% compared to $59,567,000 for the same period in 2023[26]. - The company reported a net income of $24.7 million for Q2 2024, down from $30.7 million in Q2 2023, and a net income of $45.2 million for the first six months of 2024, compared to $59.6 million in the same period of 2023[78]. - Adjusted net income for Q2 2024 was $19,399, down from $23,056 in Q2 2023, representing a 15.0% decrease[96]. - EBITDA for Q2 2024 was $25,866, compared to $30,741 in Q2 2023, indicating a decline of 15.9%[96]. Assets and Liabilities - Total assets increased to $429.25 million as of June 30, 2024, from $352.69 million at the end of 2023, representing a growth of 21.7%[18]. - Total liabilities decreased significantly to $84.70 million from $143.79 million, a reduction of 41%[18]. - As of June 30, 2024, total equity for Smith Douglas Homes Corp. stands at $344,559,000, reflecting a decrease of $11,819,000 from the previous period[22]. - The balance on the seller note payable decreased from $4.6 million as of December 31, 2023, to $3.9 million as of June 30, 2024[20]. - The company reported a net-debt-to-net book capitalization of (4.1)% as of June 30, 2024, compared to 21.1% as of December 31, 2023[99]. - The debt-to-book capitalization ratio improved to 1.1% as of June 30, 2024, from 26.6% as of December 31, 2023[99]. Cash Flow and Investments - Cash and cash equivalents as of June 30, 2024, were $17.30 million, down from $19.78 million[18]. - The balance of cash flows from operating activities for the six months ending June 30, 2023, shows a net increase of $30,694,000[24]. - Net cash used in operating activities was $(9,234,000) for the six months ended June 30, 2024, compared to $35,902,000 for the same period in 2023[26]. - The company experienced a net cash used in investing activities of approximately $3.2 million for the six months ended June 30, 2024, compared to $0.2 million in 2023, primarily due to purchases of property and equipment[108]. - Net cash provided by financing activities was approximately $9.9 million for the six months ended June 30, 2024, a substantial increase from the net cash used of $53.9 million in 2023, attributed to net proceeds from the IPO and Reorganization Transactions of $115.7 million[108]. Market and Growth Strategy - The company anticipates future growth despite potential risks, including tightening mortgage lending standards and fluctuations in the housing market[16]. - The company is focused on maintaining an adequate inventory of lots at reasonable prices to support its growth strategy[16]. - The company aims to expand operations within existing markets and into new markets to maximize profit and returns[70]. - The company’s business model focuses on entry-level and empty-nest homebuyers, providing a personalized home buying experience at affordable price points[70]. - The company’s lot acquisition strategy reduces upfront capital requirements and aligns home orders with home starts, mitigating operational and financial risks[70]. Inventory and Construction - As of June 30, 2024, total real estate inventory increased to $266.6 million from $213.1 million as of December 31, 2023, representing a 25% growth[42]. - Homes under construction, completed homes, and model homes rose to $228.7 million as of June 30, 2024, compared to $180.9 million at the end of 2023, indicating a 26% increase[42]. - The company controlled 15,842 lots at the end of Q2 2024, significantly up from 8,770 lots at the end of Q2 2023[80]. - The company had 587 owned unstarted lots in real estate inventory, representing only 3.7% of the total controlled lot supply as of June 30, 2024[70]. - The backlog of homes at the end of Q2 2024 was 1,173 units, an increase from 985 units at the end of Q2 2023[80]. Acquisitions and IPO - The company completed an IPO on January 16, 2024, raising approximately $172.8 million from the issuance of 8,846,154 shares of Class A common stock at $21.00 per share[31]. - The acquisition of Devon Street Homes significantly contributed to the increase in backlog homes and contract value as of June 30, 2024[91]. - The company plans to use a portion of the net proceeds from the IPO for potential acquisitions or investments, although no material agreements are currently in place[101]. Tax and Compliance - The Company recognized tax benefits under the Tax Receivable Agreement (TRA), which will provide for the payment of 85% of tax benefits realized related to tax basis adjustments[40]. - The company is required to make cash payments under the Tax Receivable Agreement equal to 85% of the tax benefits realized, which is expected to be significant and may impact overall cash flow[105]. - As of June 30, 2024, the Company was in compliance with all covenants related to the Amended Credit Facility[47]. Risks and Market Conditions - The company is exposed to market risk from changes in interest rates and inflation, which arise in the normal course of business[115]. - The company is open to seeking additional capital to enhance liquidity and acquire finished lot inventory in response to competitive market conditions[102].

Financial Data and Key Metrics Changes - Smith Douglas reported pre-tax income of $25.9 million, translating to $0.40 per diluted share for Q2 2024, with net income of $24.7 million [5][10] - Home closing revenue reached $220.9 million, with a gross margin of 26.7%, exceeding guidance due to solid demand and cost containment [5][10] - Adjusted net income for the quarter was $19.4 million, assuming a 25% effective tax rate [11] Business Line Data and Key Metrics Changes - The company closed 653 homes in Q2 2024, a 17% increase year-over-year, with net new home orders at 715, also a 17% increase [5][10] - The average sales price of closed homes was $338,000, with a backlog of 1,173 homes at an average selling price of $345,000 [10][12] Market Data and Key Metrics Changes - The company experienced favorable operating conditions, including low existing home inventory and healthy job growth [5][6] - The total controlled lots increased by 81% year-over-year, totaling over 15,800 lots [12] Company Strategy and Development Direction - The company focuses on operational efficiency and a disciplined culture to improve homebuilding processes [7] - A land lot strategy prioritizes minimizing land risk through option agreements, with 96% of unstarted controlled lots secured this way [8] - The company aims to grow homebuilding operations and expand its market presence, particularly outside Atlanta [9][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current operational state and the macro environment, anticipating continued demand for homeownership [9] - The outlook for Q3 2024 includes home closings between 725 and 775 homes, with an average sales price between $340,000 and $345,000 [13][14] - Risks to projections include maintaining sales pace and potential delays in permitting [14] Other Important Information - The company ended the quarter with approximately $17 million in cash and no borrowings under its credit facility, indicating a strong balance sheet [13] - A one-time charge of $1.2 million related to a purchase accounting adjustment was included in the net income for the quarter [11] Q&A Session Summary Question: Update on community count growth and thoughts for next year - Management expects to end the year with 76 to 80 communities, with some coming offline due to exceeding sales [16] Question: Demand trends over the last few months - Current demand trends are slightly below typical seasonality, with recent weeks showing good demand despite seasonal interruptions [18][19] Question: Margins for the Devon Street division compared to legacy business - Integration is progressing well, with margins in the mid-20s, consistent with legacy business expectations [22] Question: Drivers for the increase in gross margin outlook - The increase is due to better-than-expected sales margins, with land costs being the primary driver of margin erosion [24] Question: Backlog margins and assumptions for Q3 - Backlog margins are expected to be around 26%, with mix-related factors influencing Q3 performance [28] Question: Incentives being offered and competitive pressure - Incentives remain consistent, with most buyers opting for closing cost credits rather than buy downs [43][44] Question: Orders in the Houston division and seasonal trends - Seasonal trends impacted orders, with the first quarter performing better than expected [48] Question: Land position and opportunities - The company is actively pursuing land deals and expanding its footprint, particularly in Georgia [50][51]

Financial Performance - Revenue rose 22% to $220.9 million in Q2 2024[1] - Net income for Q2 2024 was $24.734 million, down from $30.741 million in Q2 2023, a decrease of 19.5%[14] - Adjusted net income for the three months ended June 30, 2024, was $19,399 thousand, down from $23,056 thousand for the same period in 2023[20] - For the six months ended June 30, 2024, adjusted net income was $35,455 thousand, compared to $44,675 thousand for the same period in 2023, showing a decline in profitability[20] - Income before income taxes for the three months ended June 30, 2024, was $25,866 thousand, compared to $30,741 thousand for the same period in 2023, reflecting a decrease in pre-tax earnings[20] Orders and Closings - Net new orders increased 17% to 715 compared to Q2 2023[1] - Home closings increased 17% to 653 year-over-year[1] - Home closings increased to 653 in Q2 2024 from 560 in Q2 2023, representing a growth of 16.6%[8] - Net new home orders reached 715 in Q2 2024, compared to 612 in Q2 2023, reflecting a 16.9% increase[8] - The backlog of homes at the end of Q2 2024 was 1,173, up from 985 in Q2 2023, indicating an increase of 19.1%[11] Backlog and Lot Control - Backlog homes increased 19% to 1,173, with a sales value of backlog homes rising 23% to $404.7 million[1] - The contract value of backlog homes rose to $404.750 million in Q2 2024, compared to $330.258 million in Q2 2023, a growth of 22.5%[11] - Total controlled lots increased 81% to 15,842[1] - Total controlled lots increased to 15,842 as of June 30, 2024, from 8,770 in 2023, representing an 80.3% increase[13] Financial Position - Cash at the end of the quarter was over $17 million, with zero borrowings under the credit facility[1] - The company reported a net-debt-to-net book capitalization of (4.1)%[1] - The total assets increased to $429.3 million from $352.7 million as of December 31, 2023[6] - As of June 30, 2024, total debt is $3,859 thousand, significantly down from $75,627 thousand on December 31, 2023, indicating a reduction in debt levels[18] - Stockholders' equity increased to $344,559 thousand as of June 30, 2024, compared to $208,903 thousand on December 31, 2023, reflecting strong equity growth[18] - The net-debt-to-net book capitalization improved to (4.1)% as of June 30, 2024, from 21.1% on December 31, 2023, indicating a stronger financial position[18] - The total capitalization as of June 30, 2024, was $348,418 thousand, up from $284,530 thousand on December 31, 2023, indicating growth in overall capital structure[18] - The company’s net debt position improved to (13,439) thousand as of June 30, 2024, compared to a net debt of $55,850 thousand on December 31, 2023, highlighting a significant reduction in net debt[18] - The debt-to-book capitalization ratio decreased to 1.1% as of June 30, 2024, from 26.6% on December 31, 2023, indicating a healthier balance sheet[18] Pricing and Market Conditions - The average selling price (ASP) of homes closed rose to $338,000 in Q2 2024, up from $324,000 in Q2 2023, marking a 4.3% increase[8] - The contract value of net new home orders was $243.842 million in Q2 2024, up from $206.130 million in Q2 2023, a growth of 18.3%[8] - The cancellation rate increased to 11.8% in Q2 2024 from 8.7% in Q2 2023[8] Tax and Regulatory Changes - The provision for income taxes for the three months ended June 30, 2024, was $1,132 thousand, while there was no provision for the same period in 2023, indicating a change in tax strategy[20]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________ to ___________________ Commission File Number: 001-41917 Smith Douglas Homes Corp. (Exact Name of Registrant as Specified in its Charter) (S ...

Smith Douglas Homes Corp. (NYSE:SDHC) Q1 2024 Earnings Conference Call May 14, 2024 8:30 AM ET Company Participants Eddy Kleid - VP, Finance Greg Bennett - Vice Chairman and CEO Russ Devendorf - EVP and CFO Conference Call Participants Sam Reid - Wells Fargo Rafe Jadrosich - Bank of America Alex Barron - Housing Research Center Jay McCanless - Wedbush Operator Good day, everyone. My name is Evelyn, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Smith ...

Exhibit 99.1 Smith Douglas Homes Reports First Quarter 2024 Results ATLANTA, May 14, 2024 (Business Wire) – Smith Douglas Homes Corp. (NYSE: SDHC) ("Smith Douglas" or the "Company") today announced first quarter results for the three months ended March 31, 2024. Q1 2024 Results as compared to Q1 2023: Greg Bennett, Vice Chairman and Chief Executive Officer, commented, "We are pleased by the results this quarter, our first as a public company, during which we completed our IPO in January and concurrently ame ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10‑K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-41917 Smith Douglas Homes Corp. (Exact name of Registrant as specified in its Charter) Delaware (State or other jurisdiction of inco ...