Financial Data and Key Metrics Changes - For Q2 2024, net income was $28.6 million, including a change in fair value of $32.1 million related to potential earnout accounting [10] - Revenue for Q2 2024 was $109.4 million, down from $122.1 million in Q2 2023 [11] - Gross profit for Q2 2024 was $19.6 million with a gross profit margin of 17.9%, down from $23.9 million and 19.6% in Q2 2023 [12] Business Line Data and Key Metrics Changes - The company delivered 337 homes in Q2 2024, generating revenue of $109 million, with the Midlands operations contributing the highest number of deliveries [6][7] - Home sales gross margin was 17.9% on a GAAP basis and 20.9% on an adjusted basis [7] - Net new home orders for Q2 2024 were 323 homes, flat year-over-year, but coastal operations saw a 59% increase and upstate operations a 44% increase [7] Market Data and Key Metrics Changes - The company ended Q2 2024 with 59 active communities, up from 53 in Q2 2024 [14] - The average sales price during Q2 2024 was approximately $341,000, compared to $313,000 in Q2 2023 [11] Company Strategy and Development Direction - The company is focused on acquiring lots in a capital-efficient manner and building homes in high-growth Southeastern markets, targeting affordable segments [3][5] - The strategy includes a combination of mergers and acquisitions (M&A) and organic growth, with a commitment to maintaining local builders' operations post-acquisition [5] - The company aims to improve absorption rates by focusing on slower-moving communities and adjusting product offerings [16][17] Management's Comments on Operating Environment and Future Outlook - Management noted a transition period in Q2 2024 due to consolidating acquisitions and rationalizing the workforce, which impacted results but did not alter the long-term outlook [4] - Positive homebuilding fundamentals were highlighted, including steady job growth and low inventory levels [5] - The company remains optimistic about the future, focusing on starting and selling homes to meet delivery goals [6] Other Important Information - The company had approximately 9,300 lots under control as of June 30, 2024, with a strong liquidity position of $80 million [14] - Adjusted SG&A expense for Q2 2024 was approximately $16.1 million, or 14.7% of revenue [13] Q&A Session Summary Question: Can you talk about your absorptions and strategy for improvement? - Management acknowledged current absorption rates and emphasized a focus on slower-moving communities, adjusting product and pricing strategies [15][16] Question: Can you discuss the lot count and the land market? - Management indicated a tightening of the filter for land acquisitions and noted that while they are still acquiring land, they are focusing on quality deals [18][19] Question: How is the integration of acquisitions progressing? - Management provided updates on the integration of three acquisitions, noting varying levels of progress and operational alignment [25][26] Question: Does the strategy change with interest rates coming down? - Management confirmed a continued focus on affordability and value engineering, adjusting incentives based on market conditions [27][28]

Core Insights - United Homes Group, Inc. (UHG) reported a significant decline in earnings per share, which fell to 50 cents in Q2 2024, down 88.3% from $4.27 in the same quarter last year [1] - The company experienced a decrease in revenues, totaling $109.4 million in Q2 2024, a decline of 10.4% year over year [2] - Home closings decreased to 337 units, down 12.5% from 385 units in the previous year, while net new home orders also fell to 323, down 5.3% from 341 units [2] Revenue Analysis - The average sale price (ASP) of production-built homes increased to approximately $341,000, an 8.9% rise from $313,000 in the previous year, driven by changes in product mix due to acquisitions [3] - The active community count as of June 30, 2024, was 59, with 9,300 lots owned or controlled by the company or its affiliates [4] Gross Margin and Profitability - Gross profit declined by 18.1% to $19.6 million, with gross margin contracting by 170 basis points to 17.9% due to amortization of purchase accounting adjustments, severance costs, and abandoned project costs [5] - Adjusted gross margin was reported at 20.9%, down from 21.4% in the previous year, primarily due to continued sales incentives offered to homebuyers [6] - Operating loss was recorded at $0.04 million compared to an operating profit of $7.6 million in the previous year, with net income down 88.3% to $28.6 million [8] Operating Expenses - Selling, general and administrative (SG&A) expenses increased by 20.1% to $19.6 million, with SG&A as a percentage of revenues at 17.9% [7] Liquidity and Cash Position - UHG ended Q2 2024 with cash and cash equivalents of $24.9 million, a decrease from $28.7 million at the end of the first quarter [9] Overall Assessment - The company faced disappointing top-line and bottom-line results, with declines in home closings and net new home orders, alongside gross margin contraction [10] - However, the increase in ASP for production-built homes was noted as a positive aspect during the quarter [10]

Financial Performance - In Q2 2024, United Homes Group closed 337 homes, generating revenue of $109.4 million, down from $122.1 million in Q2 2023[1][2] - Net income for Q2 2024 was $28.6 million, or $0.50 per diluted share, compared to $245.4 million, or $4.27 per diluted share in Q2 2023[2] - Total revenue for Q2 2024 was $109,420,037, a decrease of 10.4% compared to $122,091,629 in Q2 2023[16] - Gross profit for Q2 2024 was $19,577,696, down 18.1% from $23,917,480 in Q2 2023[16] - Adjusted EBITDA for Q2 2024 was $7.7 million, a decrease from $13.1 million in Q2 2023[4] - Adjusted EBITDA for Q2 2024 was $7,660,139, down from $13,109,262 in Q2 2023, reflecting a margin of 7.0% compared to 10.7% in the prior year[22] - The company reported a basic earnings per share of $0.59 for Q2 2024, down from $5.10 in Q2 2023[16] - For the six months ended June 30, 2024, revenues were $210.3 million, compared to $216.9 million for the same period in 2023[5][6] Equity and Assets - The company reported total stockholders' equity of $25.7 million and an adjusted book value of $85.6 million for Q2 2024[2] - Total stockholders' equity as of June 30, 2024, was $25,745,352, with an adjusted book value of $85,633,639 after excluding goodwill and derivative liabilities[27] - Total assets decreased to $284,032,996 as of June 30, 2024, from $298,647,328 at the end of 2023, a decline of 4.7%[15] - Total liabilities decreased to $258,287,644 as of June 30, 2024, down from $329,829,864 at the end of 2023, a reduction of 21.7%[15] - Cash and cash equivalents decreased to $24,915,782 from $56,671,471, a decline of 56.0%[15] Sales and Orders - The average sale price (ASP) of production-built homes increased to approximately $341,000, an 8.9% rise from $313,000 in Q2 2023[1][2] - The company reported a total of 323 net new orders in Q2 2024, a 5% decrease compared to 341 in Q2 2023[30] - The backlog inventory as of June 30, 2024, was 248 homes, with a total backlog value of $81.2 million, representing a 31% increase in inventory compared to 189 homes in the previous year[32] - The Upstate market saw a 44% increase in net new orders in Q2 2024, totaling 82 orders compared to 57 in Q2 2023[30] Operational Strategy - United Homes Group aims to expand into markets with positive population and employment growth trends, focusing on affordable housing segments[10] - The company plans to leverage its land-light operating strategy to mitigate risks associated with acquiring and developing raw land[9] - The company is focusing on improving operational efficiency and managing costs in response to declining revenues and profits[18] Cost Management - Gross profit as a percentage of revenue was 17.9% in Q2 2024, down from 19.6% in Q2 2023[3] - Adjusted gross profit for Q2 2024 was $22,845,124, compared to $26,077,447 in Q2 2023, reflecting a decrease of 12.8%[19] - Adjusted SG&A for Q2 2024 was $16,077,590, with an adjusted SG&A margin of 14.7%[25] - Interest expense in cost of sales decreased to $1,659,089 in Q2 2024 from $2,159,967 in Q2 2023[22] - The company incurred $1,504,416 in severance expenses during the first half of 2024[22] Market Trends - The company controlled approximately 9,300 lots as of June 30, 2024, with over 95% controlled via option agreements or land banking[1][2] - The company experienced a 31% increase in backlog value in the Coastal market, with a backlog value of $18.1 million as of June 30, 2024[32]

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, 2024 o 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: 001-39936 United Homes Group, Inc. (Exact name of Registrant as specified in its charter) Delaware 85-3460766 (State or ...

United Homes Group, Inc. (NASDAQ:UHG) Q1 2024 Earnings Conference Call May 10, 2024 8:30 AM ET Company Participants Erin McGinnis - General Counsel Jack Micenko - President Shelton Twine - Chief Operating Officer Keith Feldman - Chief Financial Officer Conference Call Participants Carl Reichardt - BTIG Operator Good day, everyone and welcome to the United Homes Group First Quarter 2024 Earnings Call. [Operator Instructions] Please note this call may be recorded and I will be standing by should you need any ...

Exhibit 99.1 UNITED HOMES GROUP, INC. REPORTS 2024 FIRST QUARTER RESULTS First Quarter 2024 Highlights COLUMBIA, SC., May 10, 2024 / United Homes Group, Inc. (the "Company") (NASDAQ: UHG) today announced results for the first quarter ended March 31, 2024. First Quarter 2024 Operating Results For the first quarter 2024, net income was $24.9 million, or $0.44 per diluted share, which included change in fair value of derivative liabilities of $26.4 million, with that change predominantly due to changes in fair ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x 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 o 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 001-39936 UNITED HOMES GROUP, INC. (Exact name of registrant as specified in its charter) Delaware 85-3460766 (State or ...

Call Start: 08:30 January 1, 0000 8:52 AM ET United Homes Group, Inc. (NASDAQ:UHG) Q4 2023 Earnings Conference Call March 14, 2024 08:30 ET Company Participants Erin Reeves McGinnis - General Counsel Jack Micenko - President Shelton Twine - Chief Operating Officer Keith Feldman - Chief Financial Officer Conference Call Participants Operator Good morning ladies and gentlemen and welcome to the United Homes Group Fourth Quarter and Full Year 2023 Earnings Conference Call. At this time, all lines are in a list ...

Exhibit 99.1 UNITED HOMES GROUP, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS Fourth Quarter 2023 Highlights Fiscal Year Ended December 31, 2023 Highlights COLUMBIA, SC., March 14, 2024 / United Homes Group, Inc. (the "Company") (NASDAQ: UHG) today announced results for the fourth quarter and fiscal year ended December 31, 2023. Fourth Quarter 2023 Operating Results For the fourth quarter 2023, net loss was $66.6 million, or $(1.38) per diluted share, which included change in fair value of derivat ...

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 September 30, 2023 o 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: 001-39936 United Homes Group, Inc. (Exact name of Registrant as specified in its charter) Delaware 85-3460766 (Stat ...