Financial Data and Key Metrics Changes - For Q2 2024, net income was 32.1 million related to potential earnout accounting [10] - Revenue for Q2 2024 was 122.1 million in Q2 2023 [11] - Gross profit for Q2 2024 was 23.9 million and 19.6% in Q2 2023 [12] Business Line Data and Key Metrics Changes - The company delivered 337 homes in Q2 2024, generating revenue of 341,000, compared to 313,000 in Q2 2023 [11] Company Strategy and Development Direction - The company is focused on acquiring lots in a capital-efficient manner and building homes in high-growth Southeastern markets, targeting affordable segments [3][5] - The strategy includes a combination of mergers and acquisitions (M&A) and organic growth, with a commitment to maintaining local builders' operations post-acquisition [5] - The company aims to improve absorption rates by focusing on slower-moving communities and adjusting product offerings [16][17] Management's Comments on Operating Environment and Future Outlook - Management noted a transition period in Q2 2024 due to consolidating acquisitions and rationalizing the workforce, which impacted results but did not alter the long-term outlook [4] - Positive homebuilding fundamentals were highlighted, including steady job growth and low inventory levels [5] - The company remains optimistic about the future, focusing on starting and selling homes to meet delivery goals [6] Other Important Information - The company had approximately 9,300 lots under control as of June 30, 2024, with a strong liquidity position of 80 million [14] - Adjusted SG&A expense for Q2 2024 was approximately $16.1 million, or 14.7% of revenue [13] Q&A Session Summary Question: Can you talk about your absorptions and strategy for improvement? - Management acknowledged current absorption rates and emphasized a focus on slower-moving communities, adjusting product and pricing strategies [15][16] Question: Can you discuss the lot count and the land market? - Management indicated a tightening of the filter for land acquisitions and noted that while they are still acquiring land, they are focusing on quality deals [18][19] Question: How is the integration of acquisitions progressing? - Management provided updates on the integration of three acquisitions, noting varying levels of progress and operational alignment [25][26] Question: Does the strategy change with interest rates coming down? - Management confirmed a continued focus on affordability and value engineering, adjusting incentives based on market conditions [27][28]
United Homes (UHG) - 2024 Q2 - Earnings Call Transcript