United Homes (UHG) - 2024 Q3 - Quarterly Results

Financial Performance - In Q3 2024, United Homes Group closed 369 homes, generating revenue of $118.6 million, a 35$87.7 million in Q3 2023[1][3] - Revenue for the three months ended September 30, 2024, was $118,643,955, a 35.2$87,728,091 in the same period of 2023[22] - For the nine months ended September 30, 2024, revenues were $328.9 million, compared to$304.6 million for the same period in 2023[6] - Net loss for the three months ended September 30, 2024, was $(7,339,235), a significant decrease from net income of$150,842,687 in the same period of 2023[22] - The company reported a basic loss per share of $(0.15) for the three months ended September 30, 2024, compared to earnings of$3.12 per share in the same period of 2023[22] Profitability Metrics - The gross profit percentage for Q3 2024 was 18.9%, down from 19.8% in Q3 2023, primarily due to increased sales incentives[4][7] - Gross profit for the three months ended September 30, 2024, was $22,383,027, compared to$17,410,295 in the prior year, reflecting a gross profit margin of 18.9%[22][26] - Adjusted gross profit for the three months ended September 30, 2024, was $24,480,958, with an adjusted gross profit margin of 20.6$9.0 million, slightly up from $8.8 million in Q3 2023[5][9] - Adjusted EBITDA for the three months ended September 30, 2024, was$8,978,713, reflecting a slight increase from $8,797,192 in the same period of 2023[29] - The adjusted EBITDA margin for the three months ended September 30, 2024, was 7.6$79.9 million, representing a 16% increase in inventory and a 39% increase in backlog value compared to the previous year[41] Assets and Liabilities - Total assets decreased to $282,611,518 as of September 30, 2024, down from$298,647,328 at the end of 2023[21] - Total liabilities decreased to $262,822,204 as of September 30, 2024, down from$329,829,864 at the end of 2023[21] - Homebuilding debt decreased to $72,196,208 from$80,451,429 at the end of 2023[21] - Cash and cash equivalents decreased to $25,818,156 from$56,671,471 at the end of 2023[21] Equity and Retained Earnings - Total stockholders' equity for Q3 2024 was $19.8 million, with an adjusted book value of$87.7 million[2][4] - The company’s retained earnings improved to $12,257,158 as of September 30, 2024, from a deficit of$(33,981,864) at the end of 2023[21] - The company’s total stockholders' equity as of September 30, 2024, was $19,789,314, with an adjusted book value of$87,671,035 after excluding goodwill and derivative liabilities[37] Operational Expenses - SG&A expenses as a percentage of revenues were 15.8% in Q3 2024, including 1.6 million in stock-based compensation[4][8] - Adjusted SG&A for the three months ended September 30, 2024, was 16,434,672, with an adjusted SG&A percentage of 15.8%[33] - The company incurred $1,567,945 in stock-based compensation expense for the three months ended September 30, 2024[33] Market Expansion - The company plans to expand into new geographic markets focusing on positive population and employment growth trends[15] Interest and Derivative Liabilities - Interest expense in cost of sales for the three months ended September 30, 2024, was$1,524,748, slightly down from $1,531,318 in the same period of 2023[29] - The change in fair value of derivative liabilities for the three months ended September 30, 2024, was$7,784,965, compared to a loss of $(149,703,161) in the same period of 2023[29]