United Homes (UHG) 8 Nov 242024 Q3 Earnings call transcript

Good morning. My name is Amy, and I'll be your conference operator for today. At this time, I would like to welcome everyone to the United Homes Group's Third Quarter 2024 Earnings Call. [Operator Instructions] I would like to now turn the call over to Aaron Reeves McGinnis.

You may begin.

to Group's welcome XXXX Quarter and Call. Earnings morning, United Third Homes of Good

the should relied on after applicable begins, like meaning to events date except I not this call Commission. should not subject change not Group the forward-looking not Homes risk forward-looking Before the as representing statements would statements you factors forward-looking include laws. circumstances securities future United are statements statements cautions whether any update made, federal new reliance by undue United under reflect that uncertainties, otherwise, events do call be numerous result to assumptions, obligation these our of These views or and were required any forward-looking within to, the securities the of to as laws. place Homes will and forward-looking that risks statements. which as and a Exchange date, uncertainties limited be risks in subsequent We Securities to upon filings they with of Group time. as Accordingly, over include, may information, and but the are undertake described note or

President, on this United Homes over comparable Group's Additionally, reconciliations turn non-GAAP through Micenko the the to today like With to are to and Chief filings. Hosting Jack call that, Pirrello, financial and Keith measures Feldman. call measures in the Chief most website of Officer, directly can company's call discussed Financial GAAP the I'd accessed be its Jack. Officer, Jamie SEC Executive

the of us an fronts. thank sales delivering our today want home sales for of and XXXX XX% thank quarter morning, deliveries. over new making and everybody, by our third in highlighted improvements a work as their and for operations hard in Homes quarter, update operations. United a delivered on quarter our go we provide on to year-over-year Group strong XX% of the and members Aaron. joining revenue in of number strong for to all and our results you, Good of I results Thank increase home growth deliveries team a you,

see migration economies in orders was movements We ability quarter in Traffic housing in and our by our strong in steady and to positive to markets, fundamentals convert local patterns. throughout by dictated communities highlighted sold, was continue XX% the in mortgage our somewhat use culminating the steady rates. mortgage a through period. rate incentives, increase and were orders total cadence Through of buydowns in the other quarter, we able prior over a to which of represented XXX homes year a our of traffic maintain

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housing. It's we demand there intend is the this capitalize to housing continue and will and country reality. of aspect this for affordable in market, believe Our this of focus most on undersupplied be need more to affordable that real more the secret we as segments on no the highest represents

ensure third lowest off and leverage are part our been land many future. Homebuilders leverage balance solid operating our more for improved direct too and strategy. This and is of to managing ASPs tightly to on is a returns Inventory to average a focused updating relationships Our of We've developers sales growth, production traded intend We've homes homebuilders. to the which $XXX,XXX, sheet. we keep spend. the overhead our launched product are number in positive any of capital way generating margins our and managing aimed compete the on are business. efficient price markets important the in achieving with offering demand, These return-focused gross built one all specs. of of in in carrying costs approach completed our of designs the aggressively lowering costs quarter generally our our publicly land capital. driving direct initiatives was factors rewarded home adverse We We're an risk rebidding turns overhead. at of bankers,

that builder, move to the marketplace sales as our cycle balance lot the them a sheet so positions drive community and sell that we inventory As production need we we higher through returns. soon important our We homes know as competitive possible. momentum in maintaining is plan and and on in off staying

goals, ability conditions that the right we strong While strategy to there's have in deliveries a changing initiatives. adapt lot in people, and reflects of in to the achieve place get focus work I'm orders and to our growth third on company's year-over-year market quarter to strategic both confident The be execute and posted we to these done there.

our our to detail see legacy places in Group will that of excited about that our of great United our on to in the competitive, over internal position great markets initiatives improved leadership affordable remainder the on part is to provide and turn who positive drive company's and housing more quality, like capitalize to for providing and a outlook to that, I'd builds our on the be homes is Homes of quarter the market profitability. I'm give in financial Keith? update the Keith, live. With we XXXX. While fundamentals to call an the team results

morning. you, good and Jack Thank Jamie, and

the primarily For based each hurdles paid statements of XXXX, related ending can in third quarter value price. a earn-out upon This the cash accounting of in was our reaching expense potential for which for common $X.X only in net which loss shares financial company. to stock stock will $X.X on our the change fair result quarter fluctuate certain million, will included earn-out never price a and on be million,

to compared was during X ended of fair homes for a of sales to earnout $XXX.X for price primarily homes. homes. quarter third XXXX the September X,XXX Home production the in the third included to million approximately average September closings September XXXX closings in XXXX. accounting the potential the third XX, were XX, net homes the XXXX, for which was XXXX, in compared XXXX. Average compared X quarter XX, the for Home million, months X production were $XXX,XXX million quarter homes of September to of period for ended XXX $XXX,XXX third $XXX.X the XXX related XX, third during Revenue compared for million, XXXX. for of This the during quarter months the of price the $XX.X ended Revenue the homes XXXX million For XXX months $XX.X liabilities. approximately built sales quarter ended XXX to $XX.X an change value months X million of compares quarter was income XXXX. was XXXX for of to third same $XXX.X for XXX XXXX, built

X,XXX months Net homes net XXX the quarter in XXXX new were homes Our XXX XXXX. the new were third of the in XXXX. homes to for third compared compared X,XXX homes during X to orders of quarter orders

Our $XX.X XX.X% the margin from profit $XX.X the decrease million XXXX quarter XXXX, homebuyers. $XX.X of value Adjusted incentives backlog ended gross was third profit to million. Gross quarter was XXXX. third company continuing the profit gross which the decreased quarter is primarily months at due XX.X% and XXXX. of XX, and the in third to approximately X profit of end third sales XXX a from homes offer the XX.X% to attractive percentage for gross million of which margin and changed gross XX.X% of with profit from for adjusted the The quarter September and was in

million. For XX, the at September gross X consistent XXXX, remained $XX.X profit ended months

gross percentage expense decreased same September company's primarily the sales XX.X% from for or higher of was The revenues G&A of and XX, months ended costs approximately quarter adjusted decrease gross onetime $XX.X in attributed of was attractive XXXX. XX.X% fees, sales noncash for ended the amortization third for XX, the price compensation, largely $XX.X quarter. of gross XX.X% XXXX, in to million slight profit million. stock-based percentage incentives However, X X to to from the continuing of for to to profit is margin profit XX.X% company's incentives period due The higher due offer the XXXX. from adjustment. Adjusted the a months XXXX margin adjusted adjusting was decreased XX.X% the third After to transaction homebuyers. SG&A level gross in decrease accounting September profit purchase

X expense September SG&A the of and was $XX.X SG&A adjusted ended months XX, or $XX.X For expense XXXX, million million XX.X% was revenue.

As of up we XXXX. of communities XX have active from XX today, as QX

approximately September banks. We $XX.X $XX.X had expect under up million controlled concludes parties credit as or option XXXX, our XX, had third in including resulting lots September or total million. That control $XX secure cash through lots owned of land questions. of as please open facility As for availability those as of we X,XXX parties with prepared we XX, and by on million well contracts XXXX, related the of line liquidity our in Operator, to remarks.

are no questions. this At Instructions] time, there [Operator

Pirrello I to to Jamie over it turn So remarks. closing would like for

We interest you. in of in our New fourth future call you joining our thank would I forward United and to like Year. thank all with you. Group. your today and call Jack, for Thank to quarter Homes speaking the in you the Keith and look Well,

conference concludes This today's call.

disconnect. now may You