Q1 2024 United Homes Group Inc Earnings Call Transcript
Key Points
- United Homes Group reported a solid increase in sold backlog, up 39% from the previous year, indicating strong future cash flow generation.
- The company successfully closed the acquisition of Creekside Custom Homes, expanding its presence in the coastal region of South Carolina and integrating well with existing operations.
- United Homes Group has maintained a strong balance sheet with over $28 million in cash and $63 million in undrawn revolver capacity, positioning it well for future growth.
- The company's strategic land-light approach was bolstered by a partnership with a large land banking partner, enhancing capital efficiency.
- Home deliveries and sales revenue showed healthy figures with 311 homes delivered and $101 million in revenue, driven by improvements in construction cycle times and material availability.
- Despite overall revenue growth, the company experienced a decrease in gross profit margin from 17.7% to 16%, attributed to purchase accounting adjustments and increased interest expenses.
- The average sales price of homes increased, which could potentially limit market accessibility for some buyers in a competitive market.
- United Homes Group reported a slight decrease in home closings compared to the previous year, from 328 to 311 homes.
- The company's SG&A expenses were relatively high at $17.1 million, although adjustments for one-time fees and non-cash expenses brought it down to $14.3 million.
- While the company is pursuing a land-light strategy, the reliance on strategic partnerships and land banking arrangements could pose risks if these partnerships do not yield expected results.
Good day, everyone and welcome to the United Homes Group First Quarter 2024 Earnings Call. (Operator Instructions) Please note this call may be recorded. And I will be standing by, should you need any assistance.
It is now my pleasure to turn the conference over to Erin. Please go ahead.
Good morning and welcome to United Homes Group's first quarter of 2024 earnings call.
Before the call begins, I would like to note that this call will include forward-looking statements within the meaning of the federal securities laws. United Homes Group cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties which change over time. These risks and uncertainties include but are not limited to, the risk factors described by United Homes Group in its filings with the Securities and Exchange Commission. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date and you should not
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
