United Homes (UHG) - 2024 Q2 - Quarterly Results

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]