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Smith Douglas Homes Reports Fourth Quarter and Full Year 2024 Results
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.
Investor Relations
Joe Thomas
investors@smithdouglas.com

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.
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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,
2024202320242023
Home closing revenue$287,486 $217,327 $975,463 $764,631 
Cost of home closings214,157 159,321 719,921 548,304 
Home closing gross profit73,329 58,006 255,542 216,327 
Selling, general and administrative costs42,895 27,768 136,382 92,442 
Equity in income from unconsolidated entities(361)(276)(1,161)(934)
Interest expense586 636 2,489 1,658 
Other (income) expense, net173 198 938 (19)
Income before income taxes30,036 29,680 116,894 123,180 
Provision for income taxes1,251 — 5,065 — 
Net income28,785 $29,680 111,829 $123,180 
Net income attributable to non-controlling interests and LLC members prior to IPO24,680 95,759 
Net income attributable to Smith Douglas Homes Corp.$4,105 $16,070 
Three months ended December 31, 2024Period 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:
Basic8,846,2328,846,174
Diluted9,120,5929,062,368
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Smith Douglas Homes
Condensed Consolidated Balance Sheets
December 31,
20242023
(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, net10,906 — 
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 liability10,401 — 
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, 20241 — 
Class B common stock, $0.0001 par value – 100,000,000 shares authorized; 42,435,897 shares issued and outstanding as of December 31, 20244 — 
Additional paid-in capital58,208 — 
Retained earnings15,419 — 
Total stockholders’ equity attributable to Smith Douglas Homes Corp.73,632 — 
Non-controlling interests attributable to Smith Douglas Holdings LLC328,095 — 
Total stockholders’/members’ equity401,727 208,903 
Total liabilities and members' equity
$475,901 $352,692 
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Smith Douglas Homes
Summary Cash Flow Information
(Unaudited, dollars in thousands)
Year ended December 31,20242023
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 equivalents2,586 (9,824)
Cash and cash equivalents, beginning of period19,777 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,
2024202320242023
Home closings8366542,8672,297
ASP of homes closed$344$332$340$333
Net new home orders5695242,6492,368
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)
694912694912
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)
78697869
Controlled lots (period end):
Homes under construction973796973796
Owned lots803524803524
Optioned lots17,74611,50117,74611,501
Total controlled lots19,52212,82119,52212,821
(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.
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Smith Douglas Homes
Selected Financial Information by Segment
(Unaudited, dollars in thousands)
Home Closing Revenue
Three months ended
December 31,		20242023Period over period change
Home closing
revenue		Home closingsASP of
homes closed		Home closing
revenue		Home closingsASP of
homes closed		Home closing
revenue		Home closingsASP 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 31,20242023Year over year change
Home closing
revenue		Home closingsASP of
homes closed		Home closing
revenue		Home closingsASP of
homes closed		Home closing
revenue		Home closingsASP 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,		20242023Year 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 %)
Total694 $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 31,20242023Year over year change
Owned(1)
OptionedTotal Controlled
Owned(1)
OptionedTotal Controlled
Owned(1)
OptionedTotal 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 %
Total1,776 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.
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Net Income
Three months ended December 31,Year ended December 31,
20242023Period over
period change		20242023
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 total47,028 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.
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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)		20242023
Notes payable$3,060$75,627
Stockholders’/ Members’ equity401,727208,903
Total capitalization$404,787$284,530
Debt-to-book capitalization0.8%26.6%
Notes payable$3,060$75,627
Less: cash and cash equivalents22,36319,777
Net debt(19,303)55,850
Stockholders’/ Members’ equity401,727208,903
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,
2024202320242023
Net income$28,785 $29,680 $111,829 $123,180 
Provision for income taxes1,251 — 5,065 — 
Income before income taxes30,036 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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