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Smith Douglas Homes(SDHC) - 2024 Q2 - Quarterly Results
SDHCSmith Douglas Homes(SDHC)2024-08-14 11:15

Financial Performance - Revenue rose 22% to 220.9millioninQ22024[1]−NetincomeforQ22024was220.9 million in Q2 2024[1] - Net income for Q2 2024 was 24.734 million, down from 30.741millioninQ22023,adecreaseof19.530.741 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 23,056thousandforthesameperiodin2023[20]−ForthesixmonthsendedJune30,2024,adjustednetincomewas23,056 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 44,675thousandforthesameperiodin2023,showingadeclineinprofitability[20]−IncomebeforeincometaxesforthethreemonthsendedJune30,2024,was44,675 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 30,741thousandforthesameperiodin2023,reflectingadecreaseinpre−taxearnings[20]OrdersandClosings−Netnewordersincreased1730,741 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 404.750millioninQ22024,comparedto404.750 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 17million,withzeroborrowingsunderthecreditfacility[1]−Thecompanyreportedanet−debt−to−netbookcapitalizationof(4.1)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 352.7millionasofDecember31,2023[6]−AsofJune30,2024,totaldebtis352.7 million as of December 31, 2023[6] - As of June 30, 2024, total debt is 3,859 thousand, significantly down from 75,627thousandonDecember31,2023,indicatingareductionindebtlevels[18]−Stockholders′equityincreasedto75,627 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 208,903thousandonDecember31,2023,reflectingstrongequitygrowth[18]−Thenet−debt−to−netbookcapitalizationimprovedto(4.1)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 284,530thousandonDecember31,2023,indicatinggrowthinoverallcapitalstructure[18]−Thecompany’snetdebtpositionimprovedto(13,439)thousandasofJune30,2024,comparedtoanetdebtof284,530 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 338,000inQ22024,upfrom338,000 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 243.842millioninQ22024,upfrom243.842 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]