United Homes (UHG) - 2024 Q3 - Quarterly Report

Revenue and Sales Performance - UHG's revenue for Q3 2024 was approximately $118.6 million, a 35.2% increase from$ 87.7 million in Q3 2023, driven by increased home closings and higher average sales prices [191][200]. - For the nine months ended September 30, 2024, UHG generated revenue of approximately $328.9 million, compared to$ 304.6 million for the same period in 2023, marking an increase of 8.0% [192]. - Revenue for the nine months ended September 30, 2024 was $328.9 million, an increase from$ 304.6 million in 2023, representing a growth of 7.8% [226]. Home Closings and Orders - The company closed 369 homes in Q3 2024, representing a 30.4% increase from 283 homes closed in Q3 2023 [201]. - Net new orders for the three months ended September 30, 2024 were 341 units, an increase of 69 units, or 25.4%, from 272 units for the same period in 2023 [210]. - Net new orders for the nine months ended September 30, 2024 were 1,048 units, an increase of 46 units, or 4.6%, from 1,002 units in 2023 [224]. Financial Losses and Profit Margins - The company reported a net loss of approximately $7.3 million for Q3 2024, which included$ 7.8 million related to the change in fair value of derivative liabilities [191]. - UHG's gross profit margin for Q3 2024 was 18.9%, a decrease of 0.9% from 19.8% in Q3 2023 [200]. - The adjusted EBITDA margin for Q3 2024 was 7.6%, down from 10.0% in Q3 2023, reflecting a decrease of 2.4% [191][200]. Backlog and Inventory - UHG's backlog decreased to 220 units in Q3 2024, down 22.0% from 282 units in Q3 2023 [200]. - Backlog for the three months ended September 30, 2024 was 220 units, a decrease of 62 units, or 22.0%, from 282 units for the same period in 2023 [212]. Costs and Expenses - Cost of sales for the nine months ended September 30, 2024 was $270.8 million, an increase of$ 24.3 million, or 9.9%, from $246.5 million for the same period in 2023 [216]. - Selling, general and administrative expense for the three months ended September 30, 2024 was$ 18.7 million, an increase of $5.1 million, or 37.5%, from$ 13.6 million for the same period in 2023 [204]. Cash Flow and Financing - As of September 30, 2024, the company had approximately $25.8 million in cash and cash equivalents, a decrease of$ 30.9 million from $56.7 million as of December 31, 2023 [230]. - Net cash flows used in operating activities for the nine months ended September 30, 2024, were$ 12.0 million, a decrease of $57.5 million compared to$ 45.5 million provided in the same period of 2023 [242]. - Net cash used in financing activities for the nine months ended September 30, 2024, was $6.2 million, a decrease of$ 31.8 million compared to $25.6 million provided in the same period of 2023 [244]. Acquisitions and Investments - The company completed the acquisition of Creekside Custom Homes for$ 12.7 million, recognizing goodwill of approximately $3.6 million [198]. - The Company used$ 12.7 million in cash to acquire homebuilding assets of Creekside Custom Homes during the nine months ended September 30, 2024 [243]. Tax and Earnings - The company's estimated annual effective tax rate for the fiscal year ending September 30, 2024 is 17.0%, down from 26.2% for the same period in 2023 [222]. - Net income for the nine months ended September 30, 2024 was $46.2 million, a decrease of$ 145.5 million, or 75.9%, from $191.7 million for the same period in 2023 [213]. Market and Economic Factors - A 100 basis point increase in overall interest rates would negatively affect the Company's net income by approximately$ 0.7 million [254]. - The Company has not entered into derivative financial instruments for trading or speculative purposes or to hedge against interest rate fluctuations [253].