Financial Data and Key Metrics Changes - For Q4 2024, net income was $0.7 million, which included a change in fair value of $38 million related to potential earn-out accounting [28] - Revenue for Q4 2024 was $134.8 million, up from $116.8 million in Q4 2023, while full-year revenue increased to $463.7 million from $421.5 million in 2023 [30] - Gross profit for Q4 2024 was $21.8 million with a gross profit margin of 16.2%, compared to $21.6 million and 18.5% in the prior year [32] Business Line Data and Key Metrics Changes - New home deliveries grew by 7% year-over-year, and net new home orders increased by 19% in Q4 2024 [18] - Average sales price for Q4 2024 was approximately $324,000 for 413 production-built homes, compared to $320,000 for 338 homes in the prior year [31] - Home closings for the full year increased to 1,431 homes, up from 1,383 homes in 2023 [30] Market Data and Key Metrics Changes - The company faced a competitive market with high mortgage rates negatively impacting affordability, leading to the use of mortgage incentives [13] - Completed inventory remains high across the industry, prompting competitors to offer substantial price discounts [14] Company Strategy and Development Direction - The company aims to enhance financial and operational performance by updating product designs to align with current market demands [7][9] - A focus on a land-light operating model is intended to reduce risks and upfront capital requirements [7] - The company is committed to improving its balance sheet and executing long-term strategic initiatives [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged short-term challenges but remains optimistic about the long-term outlook for homebuilding, citing strong housing fundamentals in key markets [16] - The company is positioned to capitalize on job creation and in-migration trends, which are critical for new home demand [16] - 2025 is expected to be a pivotal year for the company, with ongoing initiatives aimed at driving revenue growth and improving gross margins [17] Other Important Information - The company controlled approximately 7,700 lots as of December 31, 2024, positioning it for future growth [35] - SG&A expenses for Q4 2024 were $19.3 million, with adjusted SG&A at approximately $17.7 million or 13.1% of revenue [34] Q&A Session Summary - No specific questions or answers were documented in the provided content, thus this section is not applicable.
United Homes (UHG) - 2024 Q4 - Earnings Call Transcript