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United Homes Group Inc (UHG-4.12%) has filed its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details UHG's operations, which include designing, building, and selling homes in high-growth markets such as South Carolina, North Carolina, and Georgia. The company employs a land-light operating strategy, focusing on the construction and sale of entry-level and move-up single-family houses.
UHG reported revenues of $463.7 million for the year, an increase from $421.5 million in the previous year. This increase was attributed to higher home closings and an increase in average sales price.
The company's cost of sales was $383.9 million, leading to a gross profit of $79.8 million. Gross profit as a percentage of revenue decreased to 17.2% from 18.9% in the previous year.
Selling, general, and administrative expenses rose to $74.7 million, up from $65.1 million, due to increased commission expenses and higher salaries and wages.
UHG recorded a net income of $46.9 million, down from $125.1 million in the previous year. The decrease was primarily due to a loss on the extinguishment of Convertible Notes and changes in the fair value of derivative liabilities.
The company reported a gain of $88.7 million from changes in the fair value of derivative liabilities, down from a gain of $115.9 million in the previous year.
UHG's backlog at the end of the year was 157 units, a decrease from 189 units in the previous year, with a cancellation rate of 11.4%, down from 13.6%.
The filing includes details on UHG's financing arrangements, including a $220 million syndicated credit facility and a $70 million term loan, both of which have various covenants and conditions.
UHG's business strategy involves expanding its market presence through acquisitions, such as the acquisition of Creekside Custom Homes, and leveraging its joint venture with Homeowners Mortgage, LLC to enhance its homebuying experience offerings.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the United Homes Group Inc annual 10-K report dated March 14, 2025. To report an error, please email earnings@qz.com.