In This Article:
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Revenue: $118.6 million for Q3 2024, up from $87.7 million in Q3 2023.
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Net Loss: $7.3 million for Q3 2024.
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Net Income (9 months): $46.2 million, including a $50.7 million change in fair value.
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Home Closings: 369 homes in Q3 2024, up from 283 homes in Q3 2023.
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Average Sales Price: $320,000 for Q3 2024, compared to $316,000 in Q3 2023.
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Net New Orders: 341 homes in Q3 2024, up from 272 homes in Q3 2023.
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Backlog: 220 homes valued at approximately $79.9 million at the end of Q3 2024.
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Gross Profit: $22.4 million for Q3 2024, with a gross profit margin of 18.9%.
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Adjusted Gross Profit Margin: 20.6% for Q3 2024, down from 22.1% in Q3 2023.
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SG&A Expense: $18.7 million for Q3 2024; adjusted SG&A was $16.4 million or 13.9% of revenues.
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Active Communities: 55 as of Q3 2024, up from 53 in Q3 2023.
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Cash and Liquidity: $25.8 million in cash and $63.2 million available on credit facility, totaling $89 million in liquidity as of September 30, 2024.
Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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United Homes Group Inc (NASDAQ:UHG) reported a 35% year-over-year increase in home sales revenue for the third quarter of 2024.
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The company achieved a 30% increase in new home deliveries compared to the previous year.
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UHG successfully integrated acquisitions of Rosewood and Creekside homes, expanding its market presence in Raleigh, North Carolina.
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The company maintained a steady cadence of orders through mortgage rate buydowns and other incentives, resulting in a 25% increase in homes sold over the prior year period.
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UHG's focus on affordable housing segments is aligned with market demand, with an average sales price of $320,000, one of the lowest among publicly traded homebuilders.
Negative Points
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United Homes Group Inc (NASDAQ:UHG) reported a net loss of $7.3 million for the third quarter of 2024.
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The company's gross profit margin decreased to 18.9% from 19.8% in the third quarter of 2023, primarily due to higher sales incentives.
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Adjusted gross profit margin also decreased to 20.6% from 22.1% in the same period last year.
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SG&A expenses increased, with adjusted SG&A at 13.9% of revenues for the third quarter.
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The company continues to face challenges with higher costs of sales and the need to offer attractive sales incentives to homebuyers.
Q & A Highlights
Q: Can you provide an overview of United Homes Group's performance in the third quarter of 2024? A: John Micenko, President, highlighted that United Homes Group delivered strong results with a 35% year-over-year growth in home sales revenue and a 30% increase in new home deliveries. The company sold 341 homes, marking a 25% increase over the prior year period, despite challenges posed by mortgage rate fluctuations.