Financial Performance - UHG's revenue increased by 10.0% from approximately $421.5 million in 2023 to approximately $463.7 million in 2024[225]. - UHG's net income for 2024 was approximately $46.9 million, a decrease of 62.5% compared to $125.1 million in 2023[226][240]. - UHG's EBITDA decreased by 58.3% from approximately $144.8 million in 2023 to $60.4 million in 2024[240]. - Revenues for the year ended December 31, 2024 were $463.7 million, an increase of $42.2 million, or 10.0%, from $421.5 million for the year ended December 31, 2023[241]. - Net income for the year ended December 31, 2024 was $46.9 million, a decrease of $78.2 million, or 62.5%, from $125.1 million for the year ended December 31, 2023[250]. - Basic earnings per share dropped to $0.96 in 2024 from $2.74 in 2023, reflecting a 65% decline[321]. Sales and Orders - The company delivered 1,431 homes in 2024, a 3.5% increase from 1,383 homes in 2023, with net new orders rising by 7.9% to 1,399[223][240]. - Net new orders for the year ended December 31, 2024 were 1,399 units, an increase of 103 units, or 7.9%, from 1,296 units for the year ended December 31, 2023[251]. - The cancellation rate improved from 13.6% in 2023 to 11.4% in 2024, indicating better sales stability[240]. - Backlog for the year ended December 31, 2024 was 157 units, a decrease of 32 units, or 16.9%, from 189 units for the year ended December 31, 2023[253]. Profitability and Margins - The gross profit margin decreased from 18.9% in 2023 to 17.2% in 2024, while adjusted gross profit margin fell from 21.4% to 19.9%[226][240]. - Gross profit for the year ended December 31, 2024 was $79.8 million, an increase of $0.1 million, or 0.1%, from $79.7 million for the year ended December 31, 2023[243]. - Adjusted gross profit for the year ended December 31, 2024 was $92.4 million, an increase of $2.3 million, or 2.6%, from $90.1 million for the year ended December 31, 2023[244]. Cash Flow and Liquidity - As of December 31, 2024, UHG had approximately $22.6 million in cash and cash equivalents, a decrease of $34.1 million, or 60.1%, from $56.7 million as of December 31, 2023[261]. - Net cash provided by operating activities decreased to $15.4 million for the year ended December 31, 2024, down from $28.2 million in 2023, primarily due to higher cost of sales and increased selling, general, and administrative expenses[277]. - Net cash used in investing activities was $12.6 million for the year ended December 31, 2024, compared to $24.3 million in 2023, mainly due to a decrease in cash used for business acquisitions[278]. - Net cash used in financing activities was $34.0 million for the year ended December 31, 2024, a significant change from net cash provided of $40.5 million in 2023, largely due to the redemption of Convertible Notes and repayments of homebuilding debt[279]. Assets and Liabilities - As of December 31, 2024, total assets decreased to $265.38 million from $298.65 million in 2023, reflecting a decline of approximately 11.1%[319]. - The company reported a total liabilities reduction from $329.83 million in 2023 to $198.51 million in 2024, a decrease of about 40%[319]. - The company’s homebuilding debt decreased from $80.45 million in 2023 to $50.20 million in 2024, a reduction of approximately 37.5%[319]. - Goodwill increased from $5.71 million in 2023 to $9.28 million in 2024, an increase of approximately 62.5%[319]. Business Strategy and Growth - UHG's strategy includes organic growth through its mortgage joint venture and targeted acquisitions of complementary homebuilders[224]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[321]. - UHG's business strategy focuses on a land-light approach, primarily constructing single-family residential homes in South Carolina, North Carolina, and Georgia[331]. Acquisitions and Investments - The company completed the acquisition of Creekside Custom Homes for $12.7 million, recognizing $3.6 million in goodwill[232]. - UHG received net proceeds of approximately $94.4 million from the Business Combination and PIPE investments in March 2023, which were used for corporate purposes and acquisitions[262]. - The Company received approximately $128.6 million in gross proceeds from the Business Combination, including $43.9 million from DHHC's trust account and $80.0 million from Notes PIPE Financing[352]. Financing and Debt - The Term Loan has an outstanding balance of $67.15 million as of December 31, 2024, with a weighted average interest rate of 11.70%[270]. - The weighted average interest rates on the Syndicated Line and Term Loan were 8.41% and 11.70%, respectively, as of December 31, 2024[308]. - Cash paid for interest increased to $20,691,978 from $15,682,821 year-over-year, indicating a rise in financing costs[328]. Market and Economic Factors - A 100 basis point increase in overall interest rates would negatively affect the company's net income by approximately $1.2 million[308]. - UHG's cash flows from projects may differ materially in timing from operational results, as significant cash outflows occur at the beginning of projects[265].
United Homes (UHG) - 2024 Q4 - Annual Report