UHG United Homes Group Inc

Third Quarter 2024 Highlights

• 369 homes closed, resulting in revenue, net of sales discounts, of $118.6 million
• Average sale price (“ASP”) of production-built homes was approximately $320,000 compared to $316,000 in Q3 2023
• 341 net new home orders in Q3 2024 compared to 272 net new home orders in Q3 2023
• Active community count of 55 as of September 30, 2024
• Approximately 8,600 lots currently owned or controlled by the Company or related parties
• Available liquidity of $89.0 million as of September 30, 2024, comprised of $25.8 million of cash and $63.2 million of unused committed capacity under our credit facility

United Homes Group, Inc. (the “Company”) (NASDAQ: UHG) today announced results for the third quarter ended September 30, 2024.

Third Quarter 2024 Operating Results

For the third quarter 2024, net loss was $7.3 million, or $0.15 per diluted share, which included change in fair value of derivative liabilities of $7.8 million, with that change predominantly due to changes in fair value on potential earn-out consideration due to fluctuation in the stock price during the measurement period, representing a non-cash item. The earnout consideration would be paid in common shares upon reaching certain stock price hurdles. The Company is required to record the fair value of this earnout as derivative liabilities on the Condensed Consolidated Balance Sheets and to record changes in fair value of derivative liabilities on the Condensed Consolidated Statements of Operations, in each case until UHG shares reach certain predetermined values or expiration of the five year earnout period. Net income for the third quarter 2023 was $150.8 million, or $2.35 per diluted share, which included change in fair value of derivative liabilities of $149.7 million. Total Stockholders' equity for the third quarter 2024 was $19.8 million. Adjusted book value1, which excludes the derivative liability and goodwill, was $87.7 million.

“We are pleased to report that growth re-accelerated at UHG in 3Q24, as a number of operational initiatives we've put in place have begun to bear fruit. This was evidenced by a 25% year-over-year increase in net new orders and a 30% year-over-year increase in closings, which translated into a 35% year-over-year increase in top-line revenues,” said Jamie Pirrello, Interim Chief Executive Officer of United Homes Group.

Revenue, net of sales discounts, for the third quarter 2024 was $118.6 million, compared to $87.7 million in the third quarter 2023. Home closings during the third quarter 2024 were 369 compared to 283 in the third quarter 2023. Net new home orders during the third quarter 2024 were 341 compared to 272 in the third quarter 2023. ASP of 369 production-built homes (which does not include general contractor, custom, and build-to-rent homes) closed during the third quarter 2024 was approximately $320,000, compared to $316,000 during the third quarter 2023 for 268 production-built homes (which does not include 15 general contractor, custom, and build-to-rent homes), representing a 1.4% increase.

Gross profit percentage during the third quarter of 2024 was 18.9% compared to 19.8% during the third quarter 2023. Adjusted gross profit percentage2 in the third quarter 2024 was 20.6%, compared to 22.1% in the third quarter 2023. UHG's gross profit and adjusted gross profit percentage decreased primarily due to the Company continuing to offer attractive sales incentives to homebuyers.

Selling, general and administrative expenses (“SG&A”) as a percentage of revenues was 15.8% in the third quarter 2024, which included $1.6 million of stock-based compensation and $0.7 million of transaction-related expenses. Excluding stock-based compensation, and transaction-related expenses, Adjusted SG&A3 for the third quarter 2024 was 13.9% of revenues.

Adjusted EBITDA4 during the third quarter 2024 was $9.0 million compared to $8.8 million during the third quarter 2023.

Nine Months Ended September 30, 2024 Operating Results

For the nine months ended September 30, 2024, net income was $46.2 million, or $0.86 per diluted share, which included change in fair value of derivative liabilities of $50.7 million, with that change predominantly due to changes in fair value on potential earn-out consideration due to fluctuation in the stock price during the measurement period, representing a non-cash item. Net income for the nine months ended September 30, 2023 was $191.7 million, or $3.61 per diluted share, which included change in fair value of derivative liabilities of $185.0 million.

Revenues for the nine months ended September 30, 2024 were $328.9 million, compared to $304.6 million in the nine months ended September 30, 2023. Home closings during the nine months ended September 30, 2024 were 1,017 compared to 996 in the nine months ended September 30, 2023. Net new orders during the nine months ended September 30, 2024 were 1,048 compared to 1,002 in the nine months ended September 30, 2023.

Gross profit percentage during the nine months ended September 30, 2024 was 17.7% compared to 19.1% during the nine months ended September 30, 2023. Adjusted gross profit percentage in the nine months ended September 30, 2024 was 20.7%, compared to 21.2% in the nine months ended September 30, 2023. The decrease in gross profit percentage is primarily attributable to higher cost of sales due to higher level of incentives and amortization from purchase price accounting adjustments. The Company's adjusted gross profit percentage decreased due largely to the Company continuing to offer attractive sales incentives to homebuyers.

SG&A expenses as a percentage of revenues was 16.8% in the nine months ended September 30, 2024, which included $4.9 million of stock-based compensation, $2.4 million of transaction-related expenses, and $1.2 million related to severance costs associated with the June 2024 workforce reduction. Excluding these stock-based compensation, transaction-related, and severance cost expenses, Adjusted SG&A for the nine months ended September 30, 2024 was 14.2% of revenues.

Adjusted EBITDA during the nine months ended September 30, 2024 was $23.9 million compared to $30.4 million during the nine months ended September 30, 2023.

Earnings Conference Call

The Company will host a conference call via live webcast for investors and other interested parties beginning at 8:30 a.m. Eastern Time on Friday, November 8, 2024. Interested parties can listen to the call live and view the related slides on the Internet under the Events & Presentations heading in the Investors section of the Company’s website at www.unitedhomesgroup.com. Listeners should log into the website at least fifteen minutes prior to the call to download and install any necessary audio software. The call can also be accessed toll free at 800-715-9871, or 646-307-1963 for international participants, Conference ID: 3685495. Those dialing in should do so at least ten minutes prior to the start of the call. An archive of the webcast will also be available on the Company’s website.

About United Homes Group, Inc.

UHG is a publicly traded residential builder headquartered in Columbia, SC. The company focuses on southeastern markets with 55 active communities in South Carolina, North Carolina and Georgia.

UHG employs a land-light operating strategy with a focus on the design, construction and sale of entry-level, first move-up and second move-up single-family houses. UHG currently designs, builds and sells detached single-family homes, and, to a lesser extent, attached single-family homes, including duplex homes and town homes in three major market regions in South Carolina: Midlands, Upstate, and Coastal, and also has a presence in Georgia and North Carolina. UHG seeks to operate its homebuilding business in high-growth markets, with substantial in-migrations and employment growth.

Under its land-light lot operating strategy, UHG controls its supply of finished building lots through lot option contracts with third parties, related parties, and land bank partners, which provide UHG with the right to purchase finished lots after they have been developed by the applicable third party or related party. This land-light operating strategy provides UHG with the ability to amass a pipeline of lots without the same risks associated with acquiring and developing raw land.

As UHG reviews potential geographic markets into which it could expand its homebuilding business, either organically or through strategic acquisitions, it intends to focus on selecting markets with positive population and employment growth trends, favorable migration patterns, attractive housing affordability, low state and local income taxes, and desirable lifestyle and weather characteristics.

Forward-Looking Statements

Certain statements contained in this earnings release, other than historical facts, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “seek,” “continue,” or other similar words.

Any such forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate, and beliefs of, and assumptions made by, our management and involve uncertainties that could significantly affect our financial results. Such statements include, but are not limited to, statements about our future financial performance, strategy, expansion plans, future operations, future operating results, estimated revenues, losses, projected costs, prospects, plans and objectives of management. Such statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those projected or anticipated, including, without limitation:

• disruption in the terms or availability of mortgage financing or an increase in the number of foreclosures in our markets;
• volatility and uncertainty in the credit markets and broader financial markets;
• a slowdown in the homebuilding industry or changes in population growth rates in our markets;
• shortages of, or increased prices for, labor, land or raw materials used in land development and housing construction, including due to changes in trade policies;
• material weaknesses in our internal control over financial reporting that we have identified, which, if not corrected, could affect the reliability of our consolidated financial statements;
• our ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition and the ability of the combined business to grow and manage growth profitably;
• our ability to execute our business model, including the success of our operations in new markets and our ability to expand into additional new markets;
• our ability to successfully integrate homebuilding operations that we acquire;
• delays in land development or home construction resulting from natural disasters, adverse weather conditions or other events outside our control;
• changes in applicable laws or regulations;
• the outcome of any legal proceedings;
• our ability to continue to leverage our land-light operating strategy;
• the ability to maintain the listing of our securities on Nasdaq or any other exchange; and
• the possibility that we may be adversely affected by other economic, business or competitive factors.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release and are not intended to be a guarantee of our performance in future periods. We cannot guarantee the accuracy of any such forward-looking statements contained in this release, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

For further information regarding other risks and uncertainties associated with our business, and important factors that could cause our actual results to vary materially from those expressed or implied in such forward-looking statements, please refer to the factors listed and described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the “Risk Factors” sections of the documents we file from time to time with the U.S. Securities and Exchange Commission, including, but not limited to, our Annual Report on Form 10-K and our quarterly reports on Form 10-Q, copies of which may be obtained from our website at https://ir.unitedhomesgroup.com/financials/sec-filings/default.aspx

UNITED HOMES GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

September 30, 2024

 

December 31, 2023

ASSETS

 

 

 

Cash and cash equivalents

$

25,818,156

 

$

56,671,471

 

Accounts receivable, net

 

2,913,219

 

 

 

1,661,206

 

Inventories

 

164,461,543

 

 

 

182,809,702

 

Real estate inventory not owned

 

11,010,256

 

 

 

—

 

Due from related party

 

—

 

 

 

88,000

 

Related party note receivable

 

551,979

 

 

 

610,189

 

Income tax receivable

 

2,483,582

 

 

 

—

 

Lot deposits

 

45,748,632

 

 

 

33,015,812

 

Investment in joint venture

 

2,443,734

 

 

 

1,430,177

 

Property and equipment, net

 

955,369

 

 

 

1,073,961

 

Operating right-of-use assets

 

2,392,662

 

 

 

5,411,192

 

Deferred tax asset

 

5,559,864

 

 

 

2,405,417

 

Prepaid expenses and other assets

 

8,992,846

 

 

 

7,763,565

 

Goodwill

 

9,279,676

 

 

 

5,706,636

 

Total Assets

$

282,611,518

 

 

$

298,647,328

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Accounts payable

$

20,825,459

 

 

$

38,680,764

 

Homebuilding debt and other affiliate debt

 

72,196,208

 

 

 

80,451,429

 

Liabilities from real estate inventory not owned

 

8,627,228

 

 

 

—

 

Due to related party

 

167,349

 

 

 

—

 

Operating lease liabilities

 

2,583,802

 

 

 

5,565,320

 

Other accrued expenses and liabilities

 

11,679,818

 

 

 

8,353,824

 

Income tax payable

 

—

 

 

 

1,128,804

 

Derivative liabilities

 

77,161,397

 

 

 

127,610,943

 

Convertible Notes payable

 

69,580,943

 

 

 

68,038,780

 

Total Liabilities

 

262,822,204

 

 

 

329,829,864

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Preferred Stock, $0.0001 par value; 40,000,000 shares authorized; none issued or outstanding.

 

—

 

 

 

—

 

Class A common stock, $0.0001 par value; 350,000,000 shares authorized; 11,434,050 and 11,382,282 shares issued and outstanding on September 30, 2024, and December 31, 2023, respectively.

 

1,143

 

 

 

1,138

 

Class B common stock, $0.0001 par value; 60,000,000 shares authorized; 36,973,876 shares issued and outstanding on September 30, 2024, and December 31, 2023, respectively.

 

3,697

 

 

 

3,697

 

Additional paid-in capital

 

7,527,316

 

 

 

2,794,493

 

Retained earnings (Accumulated deficit)

 

12,257,158

 

 

 

(33,981,864

)

Total Stockholders' equity

 

19,789,314

 

 

 

(31,182,536

)

Total Liabilities and Stockholders' equity

$

282,611,518

 

 

$

298,647,328

 

UNITED HOMES GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue, net of sales discounts

$

118,643,955

 

 

$

87,728,091

 

 

$

328,902,237

 

 

$

304,646,422

 

Cost of sales

 

96,260,928

 

 

 

70,317,796

 

 

 

270,847,467

 

 

 

246,540,874

 

Gross profit

 

22,383,027

 

 

 

17,410,295

 

 

 

58,054,770

 

 

 

58,105,548

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

18,690,057

 

 

 

13,629,713

 

 

 

55,358,040

 

 

 

46,652,432

 

Net income from operations

 

3,692,970

 

 

 

3,780,582

 

 

 

2,696,730

 

 

 

11,453,116

 

 

 

 

 

 

 

 

 

Other expense, net

 

(3,710,079

)

 

 

(1,199,140

)

 

 

(9,255,039

)

 

 

(3,291,755

)

Equity in net earnings from investment in joint venture

 

419,312

 

 

 

293,923

 

 

 

1,075,983

 

 

 

930,405

 

Change in fair value of derivative liabilities

 

(7,784,965

)

 

 

149,703,161

 

 

 

50,650,309

 

 

 

184,981,652

 

(Loss) income before taxes

 

(7,382,762

)

 

 

152,578,526

 

 

 

45,167,983

 

 

 

194,073,418

 

Income tax (benefit) expense

 

(43,527

)

 

 

1,735,839

 

 

 

(1,071,039

)

 

 

2,372,300

 

Net (loss) income

$

(7,339,235

)

 

$

150,842,687

 

 

$

46,239,022

 

 

$

191,701,118

 

 

 

 

 

 

 

 

 

Basic and diluted (loss) earnings per share

 

 

 

 

 

 

 

Basic

$

(0.15

)

 

$

3.12

 

 

$

0.96

 

 

$

4.29

 

Diluted

$

(0.15

)

 

$

2.35

 

 

$

0.86

 

 

$

3.61

 

 

 

 

 

 

 

 

 

Basic and diluted weighted-average number of shares

 

 

 

 

 

 

 

Basic

 

48,389,085

 

 

 

48,356,057

 

 

 

48,375,213

 

 

 

44,723,915

 

Diluted

 

48,389,085

 

 

 

64,806,024

 

 

 

63,406,166

 

 

 

54,155,557

 

UNITED HOMES GROUP, INC GAAP TO NON-GAAP RECONCILIATIONS (Unaudited)

Adjusted gross profit is a non-GAAP financial measure used by management of the Company as a supplemental measure in evaluating operating performance. The Company defines adjusted gross profit as gross profit excluding the effects of capitalized interest expensed in cost of sales, amortization included in homebuilding cost of sales (primarily adjustments resulting from the application of purchase accounting in connection with acquisitions), severance expense in cost of sales, abandoned project costs, and non-recurring remediation costs. The Company’s management believes this information is meaningful because it separates the impact that capitalized interest and non-recurring costs directly expensed in cost of sales have on gross profit to provide a more specific measurement of the Company’s gross profits. However, because adjusted gross profit information excludes certain balances expensed in cost of sales, which have real economic effects and could impact the Company’s results of operations, the utility of adjusted gross profit information as a measure of the Company’s operating performance may be limited. Other companies may not calculate adjusted gross profit information in the same manner that the Company does. Accordingly, adjusted gross profit information should be considered only as a supplement to gross profit information as a measure of the Company’s performance.

The following table presents a reconciliation of adjusted gross profit to the GAAP financial measure of gross profit for each of the periods indicated.

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue, net of sales discounts

$

118,643,955

 

 

$

87,728,091

 

 

$

328,902,237

 

 

$

304,646,422

 

Cost of sales

 

96,260,928

 

 

 

70,317,796

 

 

 

270,847,467

 

 

 

246,540,874

 

Gross profit

$

22,383,027

 

 

$

17,410,295

 

 

$

58,054,770

 

 

$

58,105,548

 

Interest expense in cost of sales

 

1,524,748

 

 

 

1,531,318

 

 

 

6,696,856

 

 

 

6,078,117

 

Amortization in homebuilding cost of sales(a)

 

573,183

 

 

 

—

 

 

 

2,434,356

 

 

 

—

 

Severance expense in cost of sales

 

—

 

 

 

—

 

 

 

324,540

 

 

 

—

 

Abandoned project costs

 

—

 

 

 

—

 

 

 

320,000

 

 

 

—

 

Non-recurring remediation costs

 

—

 

 

 

447,327

 

 

 

109,422

 

 

 

447,327

 

Adjusted gross profit

$

24,480,958

 

 

$

19,388,940

 

 

$

67,939,944

 

 

$

64,630,992

 

Gross profit %(b)

 

18.9

%

 

 

19.8

%

 

 

17.7

%

 

 

19.1

%

Adjusted gross profit %(b)

 

20.6

%

 

 

22.1

%

 

 

20.7

%

 

 

21.2

%

______________________________

(a) Represents expense recognized resulting from purchase accounting adjustments

(b) Calculated as a percentage of revenue

UNITED HOMES GROUP, INC GAAP TO NON-GAAP RECONCILIATIONS (Unaudited)

Earnings before interest, taxes, depreciation and amortization, or EBITDA, and adjusted EBITDA are supplemental non-GAAP financial measures used by management of the Company. The Company defines EBITDA as net income before (i) capitalized interest expensed in cost of sales, (ii) interest expensed in other (expense) income, net, (iii) depreciation and amortization, and (iv) taxes. The Company defines adjusted EBITDA as EBITDA before stock-based compensation expense, transaction cost expense, severance expense, abandoned project costs, non-recurring remediation costs, amortization included in homebuilding cost of sales (adjustments resulting from the application of purchase accounting in connection with acquisitions), change in fair value of derivative liabilities, and non-recurring loss on disposal of leasehold improvements. Management of the Company believes EBITDA and adjusted EBITDA are useful because they provide a more effective evaluation of UHG’s operating performance and allow comparison of UHG’s results of operations from period to period without regard to UHG’s financing methods or capital structure or other items that impact comparability of financial results from period to period such as fluctuations in interest expense or effective tax rates, levels of depreciation or amortization, or unusual items. EBITDA and adjusted EBITDA should not be considered as alternatives to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. UHG’s computations of EBITDA and adjusted EBITDA may not be comparable to EBITDA or adjusted EBITDA of other companies.

The following table presents a reconciliation of EBITDA and adjusted EBITDA to the GAAP financial measure of net income for each of the periods indicated.

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net (loss) income

$

(7,339,235

)

 

$

150,842,687

 

 

$

46,239,022

 

 

$

191,701,118

 

Interest expense in cost of sales

 

1,524,748

 

 

 

1,531,318

 

 

 

6,696,856

 

 

 

6,078,117

 

Interest expense in other expense, net

 

3,649,305

 

 

 

2,039,512

 

 

 

9,369,598

 

 

 

5,458,821

 

Depreciation and amortization

 

522,483

 

 

 

381,917

 

 

 

1,448,777

 

 

 

848,693

 

Taxes

 

7,879

 

 

 

1,766,398

 

 

 

(896,148

)

 

 

2,404,242

 

EBITDA

$

(1,634,820

)

 

$

156,561,832

 

 

$

62,858,105

 

 

$

206,490,991

 

Stock-based compensation expense

 

1,567,945

 

 

 

1,106,014

 

 

 

4,918,036

 

 

 

6,015,700

 

Transaction cost expense

 

687,440

 

 

 

385,180

 

 

 

2,428,344

 

 

 

2,451,298

 

Severance expense

 

—

 

 

 

—

 

 

 

1,504,416

 

 

 

—

 

Abandoned project costs

 

—

 

 

 

—

 

 

 

320,000

 

 

 

—

 

Non-recurring remediation costs

 

—

 

 

 

447,327

 

 

 

109,422

 

 

 

447,327

 

Amortization in homebuilding cost of sales(b)

 

573,183

 

 

 

—

 

 

 

2,434,356

 

 

 

—

 

Change in fair value of derivative liabilities

 

7,784,965

 

 

 

(149,703,161

)

 

 

(50,650,309

)

 

 

(184,981,652

)

Adjusted EBITDA

$

8,978,713

 

 

$

8,797,192

 

 

$

23,922,370

 

 

$

30,423,664

 

EBITDA margin(a)

 

(1.4

)%

 

 

178.5

%

 

 

19.1

%

 

 

67.8

%

Adjusted EBITDA margin(a)

 

7.6

%

 

 

10.0

%

 

 

7.3

%

 

 

10.0

%

______________________________

(a) Calculated as a percentage of revenue

(b) Represents expense recognized resulting from purchase accounting adjustments

UNITED HOMES GROUP, INC GAAP TO NON-GAAP RECONCILIATIONS Continued

Adjusted selling, general and administrative expense, or adjusted SG&A, is a supplemental non-GAAP financial measure used by management of the Company. UHG defines adjusted SG&A as SG&A, excluding the effects of stock-based compensation expense, transaction cost expense, and severance expense included in SG&A. Management of UHG believes adjusted SG&A provides useful information to investors because it enables an alternative assessment of the Company's operating results in a manner that is focused on its operating performance.

The following table presents a reconciliation of Adjusted SG&A to the GAAP financial measure of SG&A for the three and nine months ended September 30, 2024.

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

 

 

2024

 

Selling, general and administrative expense

$

18,690,057

 

 

$

55,358,040

 

Stock-based compensation expense

 

1,567,945

 

 

 

4,918,036

 

Transaction cost expense

 

687,440

 

 

 

2,428,344

 

Severance expense in SG&A

 

—

 

 

 

1,179,876

 

Adjusted SG&A

$

16,434,672

 

 

$

46,831,784

 

SG&A %(a)

 

15.8

%

 

 

16.8

%

Adjusted SG&A %(a)

 

13.9

%

 

 

14.2

%

______________________________

(a) Calculated as a percentage of revenue

UNITED HOMES GROUP, INC GAAP TO NON-GAAP RECONCILIATIONS Continued

Adjusted book value is a supplemental non-GAAP financial measure used by management of the Company. UHG defines adjusted book value as total stockholders' equity (book value), excluding the effect of goodwill and derivative instruments. Management of UHG believes adjusted book value is useful to investors because it excludes the impact of purchase accounting and fair value adjustments on derivative instruments which are not expected to result in economic gain or loss.

The following table presents a reconciliation of adjusted book value to the GAAP financial measure of total stockholders' equity for the period indicated.

 

 

 

September 30, 2024

Total Stockholders' equity

 

 

$

19,789,314

 

Contingent earnout liability

64,702,340

 

 

Derivative private placement warrant liability

3,352,328

 

 

Derivative public warrant liability

8,622,413

 

 

Derivative stock option liability

484,316

 

 

Total Derivative Liability

 

 

 

77,161,397

 

Goodwill

 

 

 

(9,279,676

)

Adjusted Book Value

 

 

$

87,671,035

 

UNITED HOMES GROUP, INC

OPERATIONAL METRICS BY MARKET

$’s in millions

 

 

 

Three Months Ended September 30,

 

 

 

 

 

 

2024

 

2023

 

Period Over Period % Change

Market

 

Net New Orders

 

Closings

 

Net New Orders

 

Closings

 

Net New Orders

 

Closings

Coastal

 

54

 

59

 

22

 

50

 

145

%

 

18

%

Midlands

 

188

 

 

193

 

 

155

 

 

157

 

 

21

%

 

23

%

Upstate

 

93

 

 

108

 

 

95

 

 

76

 

 

-2

%

 

42

%

Raleigh

 

6

 

 

9

 

 

—

 

 

—

 

 

NM

 

NM

Total

 

341

 

 

369

 

 

272

 

 

283

 

 

25

%

 

30

%

 

 

Nine Months Ended September 30,

 

 

 

 

 

 

2024

 

2023

 

Period Over Period % Change

Market

 

Net New Orders

 

Closings

 

Net New Orders

 

Closings

 

Net New Orders

 

Closings

Coastal

 

184

 

152

 

131

 

188

 

40

%

 

-19

%

Midlands

 

566

 

 

518

 

 

597

 

 

574

 

 

-5

%

 

-10

%

Upstate

 

278

 

 

326

 

 

274

 

 

234

 

 

1

%

 

39

%

Raleigh

 

20

 

 

21

 

 

—

 

 

—

 

 

NM

 

NM

Total

 

1,048

 

 

1,017

 

 

1,002

 

 

996

 

 

5

%

 

2

%

 

 

As of September 30, 2024

 

As of December 31, 2023

 

Period Over Period % Change

Market

 

Backlog Inventory5

 

Backlog Value6

 

Backlog Inventory5

 

Backlog Value6

 

Backlog Inventory

 

Backlog Value

Coastal

 

47

 

$

17.1

 

14

 

$

4.2

 

236

%

 

307

%

Midlands

 

118

 

 

 

40.0

 

 

72

 

 

 

23.4

 

 

64

%

 

71

%

Upstate

 

51

 

 

 

20.7

 

 

100

 

 

 

28.1

 

 

-49

%

 

-26

%

Raleigh

 

4

 

 

 

2.1

 

 

3

 

 

 

1.9

 

 

33

%

 

11

%

Total

 

220

 

 

$

79.9

 

 

189

 

 

$

57.6

 

 

16

%

 

39

%

______________________________

NM - Not Meaningful

1 Adjusted book value is a non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures.”

2 Adjusted gross profit percentage is a non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures.”

3 Adjusted SG&A is a non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures.”

4 Adjusted EBITDA is a non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures.”

5 Backlog inventory consists of homes that are under a sales contract but have not closed. Backlog may be impacted by customer cancellations.

6 Backlog value is calculated as the total contract value of homes in backlog.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107793214/en/

Investor Relations Contact: Drew Mackintosh drew@mackintoshir.com Mobile: 310-924-9036

Media Contact: Erin Reeves McGinnis erinreevesmcginnis@unitedhomesgroup.com Phone: 844-766-4663