Financial Performance - Revenue rose 22% to $220.9 million in Q2 2024[1] - Net income for Q2 2024 was $24.734 million, down from $30.741 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 $23,056 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 $44,675 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 $30,741 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 $404.750 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 $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 $352.7 million as of December 31, 2023[6] - As of June 30, 2024, total debt is $3,859 thousand, significantly down from $75,627 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 $208,903 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 $284,530 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 $338,000 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 $243.842 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]
Smith Douglas Homes(SDHC) - 2024 Q2 - Quarterly Results