United Homes Group, Inc. Q3 FY2024 earnings call

• Jack Micenko noted strong results in the quarter with home sales revenue growth of 35% Y/Y and 30% increase in new home deliveries. Traffic in communities was steady, but conversion was affected by mortgage rates; incentives were used to maintain orders. Acquisitions of Rosewood and Creekside homes were integrated, and progress was made in North Carolina. Transitioning to a public company mindset was mentioned.
• Jamie Pirrello highlighted favorable housing fundamentals in the Southeast due to migration and business-friendly climate. Focus on affordable housing segments, average sales price of $320,000 (lowest among publicly traded homebuilders). Initiatives to drive growth, lower costs, manage overhead, update products, leverage land relationships, and improve inventory turns were discussed.

In the third quarter of 2024, United Homes Group saw revenue of $118.6 million compared to $87.7 million in the third quarter of 2023, representing a 35% year-over-year growth. Home closings in the third quarter of 2024 were 369 homes, up from 283 homes in the third quarter of 2023. Net new orders in the third quarter of 2024 were 341 homes, a 25% increase from the prior year period. The average sales price in the third quarter of 2024 for production built homes was approximately $320,000. Gross profit for the third quarter of 2024 was $22.4 million with a margin of 18.9%, while the adjusted gross profit margin was 20.6%. For the nine months ended September 30, 2024, revenue was $328.9 million compared to $304.6 million in the same period of 2023. Home closings for the nine months were 1,017 homes vs. 996 homes in 2023. Gross profit for the nine months was $58.1 million, with a margin of 17.7%, and the adjusted gross profit margin was 20.7%.

• Expect incentives to remain elevated for the remainder of 2024. - Focus on the more affordable segments of the market and strategic initiatives to drive improved profitability.

• Forward-looking statements subject to numerous assumptions, risks, and uncertainties described in SEC filings. - Mortgage rate environment and seasonal slowdown in the fourth quarter could impact results.