ATLANTA, March 12, 2025--(BUSINESS WIRE)--Smith Douglas Homes Corp. (NYSE: SDHC) ("Smith Douglas" or the "Company") today announced results for the fourth quarter and year ended December 31, 2024.

Q4 2024 Results as compared to Q4 2023:

Home closings increased 28% to 836 Home closing revenue increased 32% to $287.5 million Home closing gross margin of 25.5% compared to 26.7% Net new home orders increased 9% to 569 Pre-tax income of $30.0 million compared to $29.7 million Earnings of $0.46 per diluted share

Full Year 2024 Results as compared to Full Year 2023:

Home closings increased 25% to 2,867 Home closing revenue increased 28% to $975.5 million Home closing gross margin of 26.2% compared to 28.3% Net new home orders increased 12% to 2,649 Pre-tax income of $116.9 million compared to $123.2 million Earnings of $1.81 per diluted share Debt-to-book capitalization decreased to 0.8% from 26.6% Active community count increased 13% to 78 at year end Total controlled lots increased 52% to 19,522

Greg Bennett, Vice Chairman and Chief Executive Officer, commented, "Smith Douglas ended the year on a strong note, generating pre-tax income of $30 million in the fourth quarter of 2024. New home deliveries for the quarter totaled 836, which was well above our stated guidance and represented a Company record for quarterly closings. Home closing gross margin came in line with our expectations for the quarter at 25.5%. I want to thank all our team members for their efforts this quarter and for making our first year as a public company a real success."

Russ Devendorf, Executive Vice President and Chief Financial Officer added, "During the quarter we made further progress towards expanding our homebuilding operations in existing markets and establishing our presence in newer markets. Lot count at the end of the quarter stood at 19,522 lots, representing a 52% increase over last year. Approximately 96% of our unstarted controlled lots were controlled via option agreement, which is consistent with our land light strategy."

Mr. Devendorf continued, "As we enter the heart of the 2025 spring selling season, we remain encouraged by the trends we are seeing in our markets. Traffic levels at our communities and online have been solid so far this year, though affordability issues continue to persist, while the supply of existing homes remains below historical levels. Given the value proposition Smith Douglas offers to buyers through our affordable pricing and the customization we can provide, we believe we can compete effectively in today’s market environment."

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Conference Call & Webcast Information

Management will host a conference call to discuss the Company’s results at 8:30 a.m. Eastern Time on March 12, 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: 5403062

Replay Numbers:

Toll Free - North America: (+1) 800-770-2030
Playback Passcode: 5403062
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 #36 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 opportunities, financial position, and ability to compete in the market environment. 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, 2023, 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 Statements of Income

(Unaudited, in thousands, except share and per share amounts)  Three months ended
December 31,  Year ended December 31, 2024    2023    2024    2023  Home closing revenue $ 287,486   $ 217,327   $ 975,463   $ 764,631  Cost of home closings  214,157    159,321    719,921    548,304  Home closing gross profit  73,329    58,006    255,542    216,327   Selling, general and administrative costs  42,895    27,768    136,382    92,442  Equity in income from unconsolidated entities  (361 )   (276 )   (1,161 )   (934 ) Interest expense  586    636    2,489    1,658  Other (income) expense, net  173    198    938    (19 ) Income before income taxes  30,036    29,680    116,894    123,180  Provision for income taxes  1,251    —    5,065    —  Net income  28,785   $ 29,680    111,829   $ 123,180  Net income attributable to non-controlling interests and LLC members prior to IPO  24,680      95,759  Net income attributable to Smith Douglas Homes Corp. $ 4,105     $ 16,070

Three months ended
December 31, 2024  Period from January 11, 2024 to December 31, 2024 Earnings per share:  Basic $ 0.46  $ 1.82 Diluted $ 0.46  $ 1.81 Weighted average shares of common stock outstanding:  Basic  8,846,232   8,846,174 Diluted  9,120,592   9,062,368

Smith Douglas Homes

Condensed Consolidated Balance Sheets  December 31, 2024  2023 (Unaudited)  Assets  Cash and cash equivalents $ 22,363  $ 19,777 Real estate inventory  277,834   213,104 Deposits on real estate under option or contract  103,026   57,096 Real estate not owned  5,830   16,815 Property and equipment, net  3,775   1,543 Goodwill  25,726   25,726 Deferred tax asset, net  10,906   — Other assets  26,441   18,631 Total assets $ 475,901  $ 352,692 Liabilities and Stockholders'/Members' Equity  Liabilities:  Accounts payable $ 17,234  $ 17,318 Customer deposits  5,301   7,168 Notes payable  3,060   75,627 Liabilities related to real estate not owned  5,830   16,815 Accrued expenses and other liabilities  32,348   26,861 Tax receivable agreement liability  10,401   — Total liabilities  74,174   143,789 Commitments and contingencies  Members’ equity:  Class A units  —   206,303 Class C units  —   2,000 Class D units  —   600 Total members’ equity  —   208,903 Stockholders’ equity:  Preferred stock, $0.0001 par value – 10,000,000 shares authorized; none issued and outstanding as of December 31, 2024  —   — Class A common stock, $0.0001 par value – 250,000,000 shares authorized; 8,846,154 shares issued and outstanding as of December 31, 2024  1   — Class B common stock, $0.0001 par value – 100,000,000 shares authorized; 42,435,897 shares issued and outstanding as of December 31, 2024  4   — Additional paid-in capital  58,208   — Retained earnings  15,419   — Total stockholders’ equity attributable to Smith Douglas Homes Corp.  73,632   — Non-controlling interests attributable to Smith Douglas Holdings LLC  328,095   — Total stockholders’/members’ equity  401,727   208,903 Total liabilities and members' equity $ 475,901  $ 352,692

Smith Douglas Homes

Summary Cash Flow Information

(Unaudited, dollars in thousands)  Year ended December 31,  2024    2023  Net cash provided by operating activities $ 17,864   $ 76,257  Net cash used in investing activities  (4,706 )   (76,832 ) Net cash used in financing activities  (10,572 )   (9,249 ) Net increase (decrease) in cash and cash equivalents  2,586    (9,824 ) Cash and cash equivalents, beginning of period  19,777    29,601  Cash and cash equivalents, end of period $ 22,363   $ 19,777

Smith Douglas Homes

Selected Other Operating Data

(Unaudited, dollars in thousands)  Three months ended
December 31,  Year ended December 31, 2024    2023    2024    2023  Home closings  836    654    2,867    2,297  ASP of homes closed $ 344   $ 332   $ 340   $ 333  Net new home orders  569    524    2,649    2,368  Contract value of net new home orders $ 191,140   $ 177,541   $ 899,586   $ 792,224  ASP of net new home orders $ 336   $ 339   $ 340   $ 335  Cancellation rate(1)  14.8 %   14.0 %   12.1 %   10.5 % Backlog homes (period end)(2)  694    912    694    912  Contract value of backlog homes (period end) $ 235,869   $ 310,714   $ 235,869   $ 310,714  ASP of backlog homes (period end) $ 340   $ 341   $ 340   $ 341  Active communities (period end)(3)  78    69    78    69  Controlled lots (period end):  Homes under construction  973    796    973    796  Owned lots  803    524    803    524  Optioned lots  17,746    11,501    17,746    11,501  Total controlled lots  19,522    12,821    19,522    12,821

(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.

Smith Douglas Homes

Selected Financial Information by Segment

(Unaudited, dollars in thousands)

Home Closing Revenue  Three months ended December 31,  2024  2023  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(1)  $ 192,609  537  $ 359  $ 126,248  373  $ 338  53 %  44 %  6 % Central(2)   94,877  299   317   91,079  281   324  4 %  6 %  (2 )% Total  $ 287,486  836  $ 344  $ 217,327  654  $ 332  32 %  28 %  3 %

(1)  The Southeast segment consists of our Atlanta, Central Georgia, Charlotte, Greenville, and Raleigh divisions. (2)  The Central segment consists of our Alabama, Houston, and Nashville divisions.

Year ended December 31,  2024  2023  Year over year 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(1)  $ 609,624  1,723  $ 354  $ 509,775  1,510  $ 338  20 %  14 %  5 % Central(2)   365,839  1,144   320   254,856  787   324  44 %  45 %  (1 )% Total  $ 975,463  2,867  $ 340  $ 764,631  2,297  $ 333  28 %  25 %  2 %

(1)  The Southeast segment consists of our Atlanta, Central Georgia, Charlotte, Greenville, and Raleigh divisions. (2)  The Central segment consists of our Alabama, Houston, and Nashville divisions.

Backlog  As of December 31,  2024  2023  Year over year change Backlog homes  Contract value of backlog homes  ASP of backlog homes  Backlog homes  Contract value of backlog homes  ASP of backlog homes  Backlog homes  Contract value of backlog homes  ASP of backlog homes Southeast(1)  410  $ 146,436  $ 357  534  $ 188,406  $ 353  (23 )%  (22 )%  1 % Central(2)  284   89,433   315  378   122,308   324  (25 )%  (27 )%  (3 %) Total  694  $ 235,869  $ 340  912  $ 310,714  $ 341  (24 )%  (24 )%  — %

(1)  The Southeast segment consists of our Atlanta, Central Georgia, Charlotte, Greenville, and Raleigh divisions. (2)  The Central segment consists of our Alabama, Houston, and Nashville divisions.

Controlled Lots  As of December 31,  2024  2023  Year over year change Owned(1)  Optioned  Total Controlled  Owned(1)  Optioned  Total Controlled  Owned(1)  Optioned  Total Controlled Southeast(2)  881  12,210  13,091  486  7,907  8,393  81 %  54 %  56 % Central(3)  895  5,536  6,431  834  3,594  4,428  7 %  54 %  45 % Total  1,776  17,746  19,522  1,320  11,501  12,821  35 %  54 %  52 %

(1)  Includes homes under construction and owned lots. (2)  The Southeast segment consists of our Atlanta, Central Georgia, Charlotte, Greenville, and Raleigh divisions. (3)  The Central segment consists of our Alabama, Houston, and Nashville divisions.

Net Income  Three months ended December 31,  Year ended December 31, 2024    2023   Period over period change   2024    2023   Year over year change Southeast(1)  $ 38,414   $ 27,091   $ 11,323   $ 124,837   $ 117,558   $ 7,279  Central(2)   8,614    10,921    (2,307 )   41,891    31,867    10,024  Segment total   47,028    38,012    9,016    166,728    149,425    17,303  Corporate(3)   (18,243 )   (8,332 )   (9,911 )   (54,899 )   (26,245 )   (28,654 ) Total  $ 28,785   $ 29,680   $ (895 )  $ 111,829   $ 123,180   $ (11,351 )

(1)  The Southeast segment consists of our Atlanta, Central Georgia, Charlotte, Greenville, and Raleigh divisions. (2)  The Central segment consists of our Alabama, Houston, and Nashville divisions. (3)  Corporate primarily includes 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.

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 stockholders’ 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:

As of December 31,

(in thousands, except percentages)  2024    2023  Notes payable $ 3,060   $ 75,627  Stockholders’/ Members’ equity  401,727    208,903  Total capitalization $ 404,787   $ 284,530  Debt-to-book capitalization  0.8 %   26.6 % Notes payable $ 3,060   $ 75,627  Less: cash and cash equivalents  22,363    19,777  Net debt  (19,303 )   55,850  Stockholders’/ Members’ equity  401,727    208,903  Total net capitalization $ 382,424   $ 264,753  Net debt-to-net book capitalization  (5.0 )%   21.1 %

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 24.6% 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:

Three months ended
December 31,  Year ended December 31, 2024  2023  2024   2023 Net income $ 28,785  $ 29,680  $ 111,829  $ 123,180 Provision for income taxes  1,251   —   5,065   — Income before income taxes  30,036   29,680   116,894   123,180 Tax-effected adjustments(1)  7,389   7,301   28,756   30,302 Adjusted net income $ 22,647  $ 22,379  $ 88,138  $ 92,878

(1)  For the years ended December 31, 2024 and 2023, our tax expenses assumes a 24.6% 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).

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Contacts

Investor Relations 
Joe Thomas
[email protected]

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