Group 1 - The housing industry is viewed positively due to perpetual undersupply, stability as an asset, and benefits from a growing population [1] - The focus is on identifying companies in the oil and gas sector that are trading at significant discounts to their intrinsic value [1] - The investment approach combines Benjamin Graham's philosophy with a contrarian market perspective [1]

Shares of United Homes Group, Inc. (UHG) have lost 10.8% since the company reported its earnings for the quarter ended March 31, 2025. This contrasts with the S&P 500 Index’s 0.6% gain over the same period. Over the past month, UHG stock has plunged 17.2%, underperforming the S&P 500, which recorded an 11.8% gain.Revenue and Earnings OverviewFor the first quarter of 2025, UHG posted revenues of $87 million, down 13.7% from $100.8 million in the year-ago period. This decline was primarily due to an 18.9% yea ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 Delaware 85-3460766 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) 917 Chapin Road Chapin, South Carolina 29036 (Address of principal executive offices) (844) 766-4663 (Registrant's telephone number) N/A o TRANSITION REPORT PU ...

United Homes Group (UHG) Q1 2025 Earnings Call May 14, 2025 08:30 AM ET Company Participants Erin Reeves McGinnis - General CounselJames Pirrello - Interim CEO & DirectorJack Micenko - PresidentKeith Feldman - Chief Financial Officer Operator Thank you for standing by. My name is Carly, and I will be your conference operator today. At this time, I would like to welcome everyone to the United Home Group First Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any backgrou ...

Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income of $18.2 million, which includes a fair value adjustment of $21.2 million related to contingent earn-out liability [18] - Revenue for Q1 2025 was $87 million, a decrease of $13.8 million or 13.7% from $100.8 million in Q1 2024, primarily due to lower home closings [18][19] - Home closings totaled 252 homes, down from 311 homes in the prior year period [19] - The average sales price for production built homes was approximately $345,000, a 2.9% increase compared to $335,000 in Q1 2024 [19] - Gross profit for Q1 2025 was $14.1 million, down $2 million or 12.4% from $16.1 million in the prior year [20] - Gross margin improved slightly to 16.2% from 16% [20] Business Line Data and Key Metrics Changes - The company delivered 252 homes in Q1 2025, with an average sales price of $345,000, generating home sales revenue of $87 million [4] - Net new orders for Q1 2025 were 296 homes, down from 384 homes in the prior year period [19] - The backlog as of March 31, 2025, stood at 201 homes, representing approximately $75.3 million in value [20] Market Data and Key Metrics Changes - The company noted that affordability continues to be an issue for buyers, necessitating the use of financing incentives [13] - April orders were up 6% year over year, indicating a positive trend in demand [10][13] Company Strategy and Development Direction - The company has undertaken a product refresh and direct cost reduction initiative to improve competitive positioning and profitability [5][6] - A strategic shift towards presold homes is being emphasized, moving away from a high spec home strategy [8][9] - The company plans to open 10 new communities in Q2 and 18 communities in Q3, which are expected to boost sales efforts [15][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term prospects for markets in the Carolinas and Georgia due to favorable housing fundamentals [10] - The company is adapting to shifting market dynamics and remains focused on execution and capital allocation [22] - Management noted that the spring selling season started slowly but showed momentum exiting the quarter into April [22] Other Important Information - The company controlled approximately 7,500 lots as of March 31, 2025, positioning it for future growth [22] - Selling, general and administrative expenses for Q1 were $16.2 million, with adjusted SG&A totaling $14.2 million or 16.3% of revenue [21] Summary of Q&A Session - There were no questions during the Q&A session, and the call concluded with management expressing optimism about the future of the company [24][25]

Exhibit 99.1 UNITED HOMES GROUP, INC. REPORTS 2025 FIRST QUARTER RESULTS First Quarter 2025 Highlights COLUMBIA, SC., May 14, 2025 / United Homes Group, Inc. (the "Company") (NASDAQ: UHG) today announced results for the first quarter ended March 31, 2025. First Quarter 2025 Operating Results Gross profit percentage during the first quarter of 2025 was 16.2% compared to 16.0% during the first quarter 2024. The slight increase is attributable to a reduction in interest expense in cost of sales as a percentage ...

Core Viewpoint - United Homes Group, Inc. (UHG) reported a mixed performance in its fourth-quarter 2024 earnings, showing revenue growth but facing challenges in profitability and market conditions [2][10]. Financial Performance - UHG reported fourth-quarter 2024 revenues of $134.8 million, a 15.4% increase from $116.8 million in the prior-year quarter [2]. - The net income for the quarter was $0.7 million, or $0.01 per diluted share, compared to a net loss of $66.6 million, or $1.38 per share, in fourth-quarter 2023 [2]. - Gross profit for the quarter was $21.8 million, with a gross margin of 16.2%, up from $21.6 million and a gross margin of 18.5% in the prior-year period [4]. - Adjusted EBITDA was $7.7 million, down 23.2% from $10 million in fourth-quarter 2023 [5]. Operational Metrics - Home closings rose 6.9% year over year to 414 compared with 387 in fourth-quarter 2023 [3]. - Net new orders increased 19.4% to 351 from 294 in the prior-year period [3]. - The backlog stood at 157 homes valued at approximately $58.3 million, a decline from 189 homes valued at $57.6 million in the prior-year period [6]. Cost Management and Strategic Initiatives - Selling, general, and administrative (SG&A) expenses were $19.3 million, up 4.9% from the prior-year quarter [5]. - UHG focused on streamlining operations by rebidding direct construction costs and launching refreshed home designs, which have shown early positive sales traction [8]. - The company anticipates that product redesigns and cost optimizations will positively impact financial performance in 2025 [10]. Market Conditions - The company faced a competitive pricing environment, with builders sacrificing gross margins for volume due to higher mortgage rates affecting affordability [7]. - The cost of mortgage buydowns increased during the quarter, reaching approximately 5% of revenue [7]. Financial Restructuring - UHG refinanced its convertible notes in December, reducing leverage by $10 million and lowering annual cash interest expenses by approximately $4 million [9]. - The refinancing included a $70 million subordinated loan with a variable interest rate indexed to SOFR plus a spread of 6.75% to 7.75% [9]. Future Outlook - UHG plans to open 11 new communities in the second quarter of 2025 and another 15 in the third quarter of 2025, supporting future revenue growth [13]. - Early sales of redesigned home plans have demonstrated stronger gross margins, contributing to improved profitability as these homes become a larger share of deliveries [11].

Financial Performance - UHG's revenue increased by 10.0% from approximately $421.5 million in 2023 to approximately $463.7 million in 2024[225]. - UHG's net income for 2024 was approximately $46.9 million, a decrease of 62.5% compared to $125.1 million in 2023[226][240]. - UHG's EBITDA decreased by 58.3% from approximately $144.8 million in 2023 to $60.4 million in 2024[240]. - Revenues for the year ended December 31, 2024 were $463.7 million, an increase of $42.2 million, or 10.0%, from $421.5 million for the year ended December 31, 2023[241]. - Net income for the year ended December 31, 2024 was $46.9 million, a decrease of $78.2 million, or 62.5%, from $125.1 million for the year ended December 31, 2023[250]. - Basic earnings per share dropped to $0.96 in 2024 from $2.74 in 2023, reflecting a 65% decline[321]. Sales and Orders - The company delivered 1,431 homes in 2024, a 3.5% increase from 1,383 homes in 2023, with net new orders rising by 7.9% to 1,399[223][240]. - Net new orders for the year ended December 31, 2024 were 1,399 units, an increase of 103 units, or 7.9%, from 1,296 units for the year ended December 31, 2023[251]. - The cancellation rate improved from 13.6% in 2023 to 11.4% in 2024, indicating better sales stability[240]. - Backlog for the year ended December 31, 2024 was 157 units, a decrease of 32 units, or 16.9%, from 189 units for the year ended December 31, 2023[253]. Profitability and Margins - The gross profit margin decreased from 18.9% in 2023 to 17.2% in 2024, while adjusted gross profit margin fell from 21.4% to 19.9%[226][240]. - Gross profit for the year ended December 31, 2024 was $79.8 million, an increase of $0.1 million, or 0.1%, from $79.7 million for the year ended December 31, 2023[243]. - Adjusted gross profit for the year ended December 31, 2024 was $92.4 million, an increase of $2.3 million, or 2.6%, from $90.1 million for the year ended December 31, 2023[244]. Cash Flow and Liquidity - As of December 31, 2024, UHG had approximately $22.6 million in cash and cash equivalents, a decrease of $34.1 million, or 60.1%, from $56.7 million as of December 31, 2023[261]. - Net cash provided by operating activities decreased to $15.4 million for the year ended December 31, 2024, down from $28.2 million in 2023, primarily due to higher cost of sales and increased selling, general, and administrative expenses[277]. - Net cash used in investing activities was $12.6 million for the year ended December 31, 2024, compared to $24.3 million in 2023, mainly due to a decrease in cash used for business acquisitions[278]. - Net cash used in financing activities was $34.0 million for the year ended December 31, 2024, a significant change from net cash provided of $40.5 million in 2023, largely due to the redemption of Convertible Notes and repayments of homebuilding debt[279]. Assets and Liabilities - As of December 31, 2024, total assets decreased to $265.38 million from $298.65 million in 2023, reflecting a decline of approximately 11.1%[319]. - The company reported a total liabilities reduction from $329.83 million in 2023 to $198.51 million in 2024, a decrease of about 40%[319]. - The company’s homebuilding debt decreased from $80.45 million in 2023 to $50.20 million in 2024, a reduction of approximately 37.5%[319]. - Goodwill increased from $5.71 million in 2023 to $9.28 million in 2024, an increase of approximately 62.5%[319]. Business Strategy and Growth - UHG's strategy includes organic growth through its mortgage joint venture and targeted acquisitions of complementary homebuilders[224]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[321]. - UHG's business strategy focuses on a land-light approach, primarily constructing single-family residential homes in South Carolina, North Carolina, and Georgia[331]. Acquisitions and Investments - The company completed the acquisition of Creekside Custom Homes for $12.7 million, recognizing $3.6 million in goodwill[232]. - UHG received net proceeds of approximately $94.4 million from the Business Combination and PIPE investments in March 2023, which were used for corporate purposes and acquisitions[262]. - The Company received approximately $128.6 million in gross proceeds from the Business Combination, including $43.9 million from DHHC's trust account and $80.0 million from Notes PIPE Financing[352]. Financing and Debt - The Term Loan has an outstanding balance of $67.15 million as of December 31, 2024, with a weighted average interest rate of 11.70%[270]. - The weighted average interest rates on the Syndicated Line and Term Loan were 8.41% and 11.70%, respectively, as of December 31, 2024[308]. - Cash paid for interest increased to $20,691,978 from $15,682,821 year-over-year, indicating a rise in financing costs[328]. Market and Economic Factors - A 100 basis point increase in overall interest rates would negatively affect the company's net income by approximately $1.2 million[308]. - UHG's cash flows from projects may differ materially in timing from operational results, as significant cash outflows occur at the beginning of projects[265].

United Homes Group (UHG) Q4 2024 Earnings Call March 12, 2025 03:40 PM ET Company Participants Erin Reeves McGinnis - General CounselJames Pirrello - Interim CEO & DirectorJack Micenko - PresidentKeith Feldman - Chief Financial Officer Operator Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the United Homes Group Fourth Quarter twenty twenty four Earnings Call and Webcast. Today's conference is being recorded. All lines have be ...

United Homes Group, Inc. (NASDAQ:UHG) Q4 2024 Earnings Conference Call March 12, 2025 10:00 AM ET Company Participants Erin Reeves McGinnis - General Counsel Jamie Pirrello - Interim Chief Executive Officer Jack Micenko - President Keith Feldman - Chief Financial Officer Conference Call Participants Operator Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the United Homes Group Fourth Quarter 2024 Earnings Call and Webcast. Toda ...