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5 days ago
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Isolated showers expected in Central Florida on Sunday
A few isolated showers are expected in Central Florida on Sunday, Spectrum News 13 meteorologist Greg Bennett said. The majority of the day is expected to be dry, Bennett said. The high today will be 89 degrees and the low will be 72 degrees.
Business Wire
14-05-2025
- Business
- Business Wire
Smith Douglas Homes Reports First Quarter 2025 Results
ATLANTA--(BUSINESS WIRE)--Smith Douglas Homes Corp. (NYSE: SDHC) ('Smith Douglas' or the 'Company') today announced first quarter results for the three months ended March 31, 2025. Q1 2025 Results as compared to Q1 2024: Home closings increased 19% to 671 Home closing revenue increased 19% to $224.7 million Home closing gross margin of 23.8% compared to 26.1% Net new home orders of 768 compared to 765 Pretax income of $19.6 million compared to $21.4 million Earnings of $0.30 per diluted share compared to $0.33 Debt-to-book capitalization of 9.5% compared to 0.8% at December 31, 2024 Active community count increased 24% to 87 at quarter end Total controlled lots increased 45% to 20,442 Greg Bennett, Vice Chairman and Chief Executive Officer, commented, 'Smith Douglas Homes turned in another quarter of strong profitability to start 2025, generating pretax income of $19.6 million, or earnings of $0.30 per diluted share. Home closing revenue grew 19% year-over-year on a similar increase in new home closings, while home closing gross margin came in at 23.8%, which was above our expectations for the quarter. I want to thank our entire team for once again executing with efficiency and precision.' Russ Devendorf, Executive Vice President and Chief Financial Officer added, 'Order activity improved as the quarter progressed, though I would characterize overall demand as somewhat inconsistent and still dependent on incentives. While affordability remains an issue in our markets, we continue to see good traffic to our website and our communities. We feel this is a reflection on the appeal of our homes and the value proposition we provide to buyers.' Mr. Devendorf continued, 'Despite much of the noise surrounding macroeconomic uncertainty, we remain confident in our ability to execute on our strategic plans and achieve our long-term growth goals. Active community count at quarter-end increased 24% compared to last year, while total controlled lots were up 45%, giving us a great opportunity to grow our market share and increase our size and scale. We believe our asset light strategy, solid operational execution and strong balance sheet has us well-positioned to successfully navigate today's changing homebuilding landscape.' Conference Call & Webcast Information Management will host a conference call to discuss the Company's results at 8:30 a.m. Eastern Time on May 14, 2025. Interested parties can dial in using the numbers below or access the call via a webcast link provided in the investor relations section of the company's website. Dial-in Numbers: Toll Free - North America (+1) 800-715-9871 International: (+1) 646-307-1963 Conference ID: 8459388 Replay Numbers: Toll Free - North America: (+1) 800-770-2030 Playback Passcode: 8459388 Replay will expire 7 days following the event About Smith Douglas Homes Headquartered in Woodstock, Georgia, Smith Douglas Homes completed its initial public offering in January 2024. Since its inception, Smith Douglas has been entrusted by over 17,500 families to fulfill their new home dreams. Ranked a top 50 builder nationally for several years and with 2,867 closings in 2024, Smith Douglas currently holds the #32 position on the Builder Magazine Top 100 list. The Smith Douglas communities are primarily targeted to entry-level and empty-nest homebuyers looking to purchase a new home priced below the Federal Housing Administration loan limit in the metro areas of Atlanta, Birmingham, Central Georgia, Charlotte, Chattanooga, Greenville, Houston, Huntsville, Nashville, and Raleigh. Smith Douglas offers its homebuyers a personalized, affordable-luxury buying experience at attractive prices. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the Company's performance, growth, strategic plans and opportunities, financial position, ability to navigate the changing homebuilding landscape in the macroeconomic environment, and the timing of any of the foregoing. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the factors discussed under the caption 'Risk Factors' in our Annual Report on Form 10-K for the year ended December 31, 2024, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. These forward-looking statements are based on management's current estimates and expectations. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. Smith Douglas Homes Condensed Consolidated Balance Sheets (In thousands, except share and per share amounts) December 31, 2024 (unaudited) Assets Cash and cash equivalents $ 12,651 $ 22,363 Real estate inventory 294,991 277,834 Deposits on real estate under option or contract 119,339 103,026 Real estate not owned 7,502 5,830 Property and equipment, net 4,317 3,775 Goodwill 25,726 25,726 Deferred tax asset, net 10,767 10,906 Other assets 38,626 26,441 Total assets $ 513,919 $ 475,901 Liabilities and Equity Liabilities: Accounts payable $ 19,912 $ 17,234 Customer deposits 5,585 5,301 Notes payable 42,648 3,060 Liabilities related to real estate not owned 7,502 5,830 Accrued expenses and other liabilities 20,708 32,348 Tax receivable agreement liability 10,401 10,401 Total liabilities 106,756 74,174 Commitments and contingencies (Note 9) Stockholders' equity: Preferred stock, $0.0001 par value – 10,000,000 shares authorized; none issued and outstanding as of March 31, 2025 and December 31, 2024 — — Class A common stock, $0.0001 par value – 250,000,000 shares authorized; 8,991,378 and 8,846,154 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively 1 1 Class B common stock, $0.0001 par value – 100,000,000 shares authorized; 42,435,897 shares issued and outstanding as of March 31, 2025 and December 31, 2024 4 4 Additional paid-in capital 58,820 58,208 Retained earnings 18,040 15,419 Total stockholders' equity attributable to Smith Douglas Homes Corp. 76,865 73,632 Non-controlling interests attributable to Smith Douglas Holdings LLC 330,298 328,095 Total equity 407,163 401,727 Total liabilities and equity $ 513,919 $ 475,901 Expand Smith Douglas Homes Summary Cash Flow Information (Unaudited, dollars in thousands) Three months ended March 31, 2025 2024 Net cash used in operating activities $ (34,905 ) $ (9,273 ) Net cash used in investing activities (2,106 ) (430 ) Net cash provided by financing activities 27,299 22,704 Net (decrease) increase in cash and cash equivalents (9,712 ) 13,001 Cash and cash equivalents, beginning of period 22,363 19,777 Cash and cash equivalents, end of period $ 12,651 $ 32,778 Expand Smith Douglas Homes Selected Other Operating Data (Unaudited, dollars in thousands) Three months ended March 31, 2025 2024 Home closings 671 566 ASP of homes closed $ 335 $ 334 Net new home orders 768 765 Contract value of net new home orders $ 258,718 $ 259,440 ASP of net new home orders $ 337 $ 339 Cancellation rate (1) 8.1 % 10.6 % Backlog homes (period end) (2) 791 1,110 Contract value of backlog homes (period end) $ 270,082 $ 381,155 ASP of backlog homes (period end) $ 341 $ 343 Active communities (period end) (3) 87 70 Controlled lots (period end): Homes under construction 995 896 Owned lots 888 693 Optioned lots 18,559 12,528 Total controlled lots 20,442 14,117 Expand (1) The cancellation rate is the total number of cancellations during the period divided by the total gross new home orders during the period. (2) Backlog homes (period end) is the number of homes in backlog from the previous period plus the number of net new home orders generated during the current period minus the number of homes closed during the current period. (3) A community becomes active once the model is completed or the community has its first sale. A community becomes inactive when it has fewer than two homes remaining to sell. Expand Smith Douglas Homes Selected Financial Information by Segment (Unaudited, dollars in thousands) Home Closing Revenue Three months e nded March 31, 2025 2024 Period over period change Home closing revenue Home closings ASP of homes closed Home closing revenue Home closings ASP of homes closed Home closing revenue Home closings ASP of homes closed Southeast $ 138,218 392 $ 353 $ 103,494 297 $ 348 34 % 32 % 1 % Central 86,504 279 310 85,715 269 319 1 % 4 % (3 )% Total $ 224,722 671 $ 335 $ 189,209 566 $ 334 19 % 19 % — % Expand Backlog As of March 31, 2025 2024 Period over period change Central 305 100,115 328 437 141,568 324 (30 )% (29 )% 1 % Total 791 $ 270,082 $ 341 1,110 $ 381,155 $ 343 (29 )% (29 )% (1 )% Expand (1) Includes homes under construction and owned lots. Expand Net Income Three months ended March 31, 2025 2024 Period over period change Southeast $ 23,855 $ 21,005 $ 2,850 Central 7,010 10,283 (3,273 ) Segment total 30,865 31,288 (423 ) Other (1) (12,155 ) (10,802 ) (1,353 ) Total $ 18,710 $ 20,486 $ (1,776 ) Expand (1) Other primarily includes homebuilding operations in non-reportable segments, corporate overhead costs, such as payroll and benefits, business insurance, information technology, office costs, outside professional services and travel costs, and certain other amounts that are not allocated to the reportable segments. Expand Non-GAAP Financial Measures In addition to our results determined in accordance with generally accepted accounting principles in the U.S. ('GAAP'), this press release includes net debt-to-net book capitalization and adjusted net income. Net debt-to-net book capitalization Net debt-to-net book capitalization is a supplemental measure of our leverage that is not required by, or presented in accordance with, GAAP and should not be considered as an alternative to debt-to-book capitalization or any other measure derived in accordance with GAAP. We caution investors that amounts presented in accordance with our definition of net debt-to-net book capitalization may not be comparable to similar measures disclosed by our competitors because not all companies and analysts calculate this non-GAAP financial measure in the same manner. We present this non-GAAP financial measure because we consider it to be an important supplemental measure of our leverage and believe it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. We define net debt-to-net book capitalization as: Total debt, less cash and cash equivalents, divided by Total debt, less cash and cash equivalents, plus equity. This non-GAAP financial measure has limitations as an analytical tool in that it subtracts cash and cash equivalents and therefore may imply that the Company has less debt than the most comparable measure determined in accordance with GAAP. Because of this limitation, this non-GAAP financial measure should be considered along with other financial measures presented in accordance with GAAP. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. We have reconciled this non-GAAP financial measure with the most directly comparable GAAP financial measure in the following table: Adjusted net income Adjusted net income is not a measure of net income or net income margin as determined by GAAP. Adjusted net income is a supplemental non-GAAP financial measure used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders, and rating agencies. We define adjusted net income as net income adjusted for the tax impact using a 24.9% federal and state blended tax rate (assuming 100% public ownership to adjust for the impact of taxes on earnings attributable to Smith Douglas Holdings LLC as if Smith Douglas Holdings LLC was a subchapter C corporation in the periods presented). Management believes adjusted net income is useful because it allows management to more effectively evaluate our operating performance and comparability to industry peers who record income tax expense on their income before tax as opposed to the income of Smith Douglas Holdings LLC not being taxed at the entity level and, therefore, not reflecting a charge against earnings for income tax expense. Adjusted net income should not be considered as an alternative to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. Our computation of adjusted net income may not be comparable to adjusted net income of other companies. We present adjusted net income because we believe it provides useful information regarding our comparability to peers. The following table presents a reconciliation of adjusted net income to the GAAP financial measure of net income for each of the periods indicated: (1) For the three months ended March 31, 2025 and 2024, our tax expenses assumes a 24.9% and 25.0% federal and state blended tax rate, respectively, (assuming 100% public ownership to adjust for the impact of taxes on earnings attributable to Smith Douglas Holdings LLC as if Smith Douglas Holdings LLC was a subchapter C corporation in the periods presented). Expand
