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Smith Douglas Homes Corp. Class A (SDHC-0.85%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's operations, which focus on designing, constructing, and selling single-family homes in the Southeastern and Southern United States. Smith Douglas employs a land-light business model, acquiring finished lots through option contracts with third-party developers or land bankers.
For the year ended December 31, 2024, Smith Douglas reported home closing revenue of $975.5 million, an increase of 27.6% from $764.6 million in the previous year. The increase was driven by a 24.8% rise in home closings and a 2.1% increase in the average sales price of homes closed.
Cost of home closings was $719.9 million, up 31.3% from the previous year, resulting in a home closing gross profit of $255.5 million. The home closing gross margin decreased to 26.2% from 28.3% in the prior year.
Selling, general, and administrative expenses rose by 47.5% to $136.4 million, reflecting higher sales commissions, advertising costs, and expenses related to the company's IPO.
Net income for the year was $111.8 million, down from $123.2 million in 2023. The decrease was primarily due to increased operating expenses and a provision for income taxes of $5.1 million.
Smith Douglas reported a backlog of 694 homes at the end of 2024, with a contract value of $235.9 million. The company controlled 19,522 lots, an increase of 52.3% from the previous year.
The company completed its IPO on January 16, 2024, issuing 8,846,154 shares of Class A common stock at $21.00 per share, raising net proceeds of approximately $172.8 million. The proceeds were used to repay debt and for general corporate purposes.
Smith Douglas operates in eight geographical divisions, categorized into two segments: Southeast and Central. The Southeast segment reported a net income increase of $7.3 million, while the Central segment saw a $10.0 million increase in net income.
The company identified a material weakness in its internal control over financial reporting related to information technology general controls, which it is working to remediate.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Smith Douglas Homes Corp. Class A annual 10-K report dated March 21, 2025. To report an error, please email earnings@qz.com.