NASDAQ:UHG United Homes Group Q1 2025 Earnings Report $3.49 +0.21 (+6.40%) Closing price 06/24/2025 04:00 PM EasternExtended Trading$3.54 +0.05 (+1.55%) As of 06/24/2025 07:56 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. ProfileEarnings History United Homes Group EPS ResultsActual EPS$0.03Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/AUnited Homes Group Revenue ResultsActual Revenue$87.00 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/AUnited Homes Group Announcement DetailsQuarterQ1 2025Date5/14/2025TimeBefore Market OpensConference Call DateWednesday, May 14, 2025Conference Call Time8:30AM ETUpcoming EarningsUnited Homes Group's Q2 2025 earnings is scheduled for Wednesday, August 6, 2025, with a conference call scheduled on Friday, August 8, 2025 at 4:00 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by United Homes Group Q1 2025 Earnings Call TranscriptProvided by QuartrMay 14, 2025 ShareLink copied to clipboard.Key Takeaways United Homes Group reported 252 home closings and $87 million in sales revenue—a 13.7% decline year-over-year—with net new orders down to 296 due to a slow start and adverse weather. Home sales gross margin improved 20 basis points to 16.2% but remained under pressure from elevated incentives and strategic price discounts. The product refresh generated strong results, with 23 newly designed homes closing at an average gross margin of 24% and 95 more in backlog carrying similar margins. A direct cost reduction initiative has already identified over $3.5 million in 2025 construction savings through competitive rebids, with further savings expected as the plan ramps. The company is shifting from spec inventory toward presold homes to enhance margins, improve delivery visibility, and reduce capital tied up in finished inventory. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallUnited Homes Group Q1 202500:00 / 00:00Speed:1x1.25x1.5x2xTranscript SectionsPresentationParticipantsPresentationSkip to Participants Operator00:00:00Thank you for standing by. My name is Carly, and I will be your conference operator today. At this time, I would like to welcome everyone to the United Home Group First Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Operator00:00:33Thank you. I would now like to turn the call over to Erin Reeves McGinnis, general counsel. Please go ahead. Erin Reeves McGinnisGeneral Counsel at United Homes Group00:00:44Good morning, and welcome to United Homes Group's first quarter of twenty twenty five earnings call. Before the call begins, I would like to note that this call will include forward looking statements within the meaning of the federal securities laws. United Group cautions that forward looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time. These risks and uncertainties include, but are not limited to, the risk factors described by United Homes Group in its filings with the Securities and Exchange Commission. Accordingly, forward looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward looking statements. Erin Reeves McGinnisGeneral Counsel at United Homes Group00:01:20We do not undertake any obligation to update forward looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Additionally, reconciliations of non GAAP financial measures discussed on this call to the most directly comparable GAAP measures can be accessed through the company's website and in its SEC filings. Hosting the call today are United Homes Group's Interim Chief Executive Officer, Jamie Perello President, Jack Maseko and Chief Financial Officer, Keith Feldman. With that, I'd like to turn the call over to Jamie. James PirrelloInterim CEO & Director at United Homes Group00:01:54Thank you for joining us today as we go over our results for the first quarter of twenty twenty five and provide an update on our operations. United Homes Group delivered two fifty two homes in the first quarter with an average sales price on production built homes of $345,000 generating home sales revenue of $87,000,000 Home sales gross margins improved 20 basis points year over year but remained depressed at 16.2% due to elevated incentive activity and our strategic decision to discount move spec inventory. Net new orders came in at two ninety six units. Our sales pace in January and the February was disappointing and did not meet our expectations. As a result, we had fewer homes available to close during the second half of the first quarter. James PirrelloInterim CEO & Director at United Homes Group00:02:43The slower sales pace had a material impact on our results. Like other builders, we saw improved sales in the February. March met our expectations, and April and the May have been good. Overall, I'm pleased with the progress we made on a number of fronts and am encouraged by the operational momentum we carried into the second quarter. As we mentioned in the last quarter, we've undertaken a product refresh and a direct cost reduction initiative that should improve our competitive positioning and profitability. James PirrelloInterim CEO & Director at United Homes Group00:03:14While we are still in the early stages of these initiatives, the initial results have been encouraging. Our newly designed homes have been well received by buyers and generated margins well in excess of the company's average in the first quarter of twenty twenty five. The 23 newly designed homes we closed during the first quarter had an average gross margin of approximately 24%. We closed 27 of these refreshed homes in April. As of Monday, May 12, we had 95 newly designed homes in backlog carrying an average gross margin of approximately 24%. James PirrelloInterim CEO & Director at United Homes Group00:03:48Every day these homes are making up a bigger percentage of our closings in the future. In terms of our cost reduction plan, we have already identified over $3,500,000 of direct construction cost savings for homes expected to be closed in 2025. We achieved this through the competitive rebidding of our agreements with subcontractors and material suppliers. We expect the effects of these cost saving initiatives to begin on a small scale in the second quarter and ramp up through the third and fourth quarters. We have not completed this initiative so we anticipate additional savings. James PirrelloInterim CEO & Director at United Homes Group00:04:23Another initiative we've undertaken to place a greater emphasis on presold homes. In prior quarters, it made sense to carry a higher level of spec inventory given the extended cycle times resulting from the supply chain issues of years past and the entry level buyers' preference for quick moving homes. Now that cycle times have come down and move up buyers have become more active in the market, we have made the strategic decision to shift away from a high spec home strategy and look for a somewhat more balanced approach in our move up product lines. Presales are currently producing much higher margins, especially when compared to the discounting we do on completed spec home inventory. This shift will allow us to capitalize on buyers who are willing and able to pay for what they want in a new home. James PirrelloInterim CEO & Director at United Homes Group00:05:08This includes upgrades such as structural and interior option offerings and other upgrades that we sell at higher margins. It will also give us better visibility into our delivery outlook for the year and reduce the capital tied up in standing inventory. With pre sold homes and newly refreshed products expected to make up a higher percentage of our closings going forward, we are optimistic about the trajectory of our margins. We also remain optimistic about the long term prospects for our markets. The Carolinas and Georgia continue to attract employers to the region due to their business friendly economic climate and attractive quality of life. James PirrelloInterim CEO & Director at United Homes Group00:05:44They also boast better housing affordability relative to most major markets, which has led to consistent in migration from other parts of the country. We continue to see greater opportunities for long term growth in these markets and others throughout the Southeast given these favorable housing fundamentals. As we turn our attention to the latter part of the spring selling season, we remain focused on maintaining a consistent level of new home sales while executing on the initiatives I discussed above. So far this quarter, demand has been fairly solid with April orders up 6% year over year. While incentives continue to run at a higher level than we would like, we believe our improved product design, presold home focus can offset some of that margin impact. James PirrelloInterim CEO & Director at United Homes Group00:06:29As a result, I believe United Homes Group is on the right path to achieve its long term goals. With that, I'd like to turn the call over to Jack who will provide more detail on our operational results this quarter. Jack MicenkoPresident at United Homes Group00:06:40Thanks, Jamie, and good morning, everyone. First quarter of twenty twenty five was a tale of two halves for our company, with the second half being materially better than the first. January started slowly due to normal seasonality and some abnormal snowfall, which impacted our sales efforts. We saw a bounce back in February, and that momentum carried into March. Our profitability also followed a similar trajectory with gross margins improving 400 basis points from the beginning of the quarter through the end. Jack MicenkoPresident at United Homes Group00:07:06As Jamie mentioned, April orders were up 6% year over year. Affordability continues to be an issue for buyers, which has necessitated the use financing incentives to get people to their desired monthly payment. Incentives have been a key selling tool for our industry and a distinct advantage over the resell market where it has come at a cost to our profitability. Financing incentive as a percentage of ASP was 4% for the quarter, which is consistent with the prior quarter. We expect incentive activity to remain elevated. Jack MicenkoPresident at United Homes Group00:07:34We are optimistic that our shift to more presale homes and the appeal of our fresh product will dampen their effect, however, on our margins. We took sixteen days out of our average cycle time in the first quarter as compared to last year. Part of the improvement was a result of labor and material availability returning to pre COVID levels, but another factor has been our focus on becoming a more efficient builder with product rationalization and better build practices. This has been another key initiative for our company in addition to the product improvements, the cost containment measures we've undertaken. We are a returns focused builder, and our ability to build and close homes in a timely manner is an important aspect of that focus. Jack MicenkoPresident at United Homes Group00:08:11Another important aspect of our strategy is to tie up land in a capital efficient manner. At the end of the first quarter, we owned or controlled approximately 7,500 lots. We believe this asset led strategy puts us in a great position to pursue our growth initiatives in a capital efficient, risk averse manner. We are staying disciplined to our underwriting of new land deals given the uncertainty in the market today and continue to work with our land partners on terms of our future lot takedowns. We expect to open 10 new communities in the second quarter and 18 communities in the third quarter, giving our sales efforts a boost. Jack MicenkoPresident at United Homes Group00:08:42Most of these communities will feature our newly refreshed product, which have been selling well and carry higher margins. Given these new community rollouts and the way in which our company's performance improved over the first four months of the year, I'm excited about what's in store for the remainder of 2025. Now I'm going to turn the call over to Keith who will provide more detail on our financial results for the quarter. Keith FeldmanChief Financial Officer at United Homes Group00:09:02Thank you, Jack and Jamie, good morning. For the first quarter of twenty twenty five, we reported net income of $18,200,000 which includes a fair value adjustment of $21,200,000 primarily related to the accounting for the contingent earn out liability, which fluctuates each quarter based on our ending stock price. The earn out will be settled exclusively in common shares upon reaching certain stock price hurdles and will never result in a cash expense for the company. As Jamie mentioned, revenue for the first quarter of twenty twenty five was $87,000,000 a decrease of $13,800,000 or 13.7% from $100,800,000 in the first quarter of twenty twenty four. The year over year decline was primarily driven by lower home closings, partially offset by an increase in average sales price. Keith FeldmanChief Financial Officer at United Homes Group00:09:51Home closings for the first quarter of twenty twenty five totaled two fifty two homes, down from three eleven homes in the prior year period. As we previously mentioned, the industry wide slow start to the year and unusually poor weather in South Carolina negatively impacted our January. While our sales pace began to improve in the February and into March, the slower activity in January impacted our quarterly closings as a large portion of our sales typically close in the latter half of the quarter. The average sales price for production built homes during the quarter was approximately $345,000 a 2.9% increase compared to $335,000 in the first quarter of twenty twenty four. Due to the challenging environment previously discussed, net new orders for the first quarter was two ninety six homes, down from three eighty four homes in the prior year period. Keith FeldmanChief Financial Officer at United Homes Group00:10:46Backlog as of 03/31/2025 stood at two zero one homes, representing approximately $75,300,000 in value. Gross profit for the first quarter of twenty twenty five was $14,100,000 down $2,000,000 or 12.4% from $16,100,000 in the prior year period. Gross margin improved slightly to 16.2% from 16%, driven by lower interest expense and cost of sales as a percentage of revenue, partially offset by elevated incentives and price discounting aimed at accelerating the sales of finished inventory. Adjusted gross margin was 18.8%, down from 20.4%, reflecting the elevated incentive costs and price reduction. We anticipate improvements in our margins throughout the year as our direct cost reduction efforts materialize into earnings savings and homes featuring our Fresh Floor plans start to comprise a larger share of our closings in future quarters. Keith FeldmanChief Financial Officer at United Homes Group00:11:47Selling, general and administrative expenses for the first quarter were $16,200,000 Excluding approximately $2,000,000 in non cash stock based compensation expense, adjusted SG and A totaled $14,200,000 or 16.3% of revenue. In December, we refinanced our standing convertible note debt, which reduced our total debt and lowered our cash interest expense. The refinancing and lower balances on our Wells facility resulted in cash interest expense savings of approximately $1,000,000 in Q1 compared to Q4 of last year. As of today, we have 50 active communities down from 63 a year ago. As Jack noted, the planned rollout of new communities in the second and third quarters is expected to provide a meaningful boost to our sales efforts. Keith FeldmanChief Financial Officer at United Homes Group00:12:34As of 03/31/2025, we controlled approximately 7,500 lots, which include a mix of owned, optioned and land banked assets positioning us to drive future growth and capture market opportunities. We had approximately $86,900,000 of liquidity and cash and availability on our credit facility as of Q1. As we look ahead, we remain focused on execution. While the spring selling season got off to a slower start, we're encouraged by the momentum exiting the quarter into April. We're adapting to shifting market dynamics, staying disciplined in our capital allocation and continuing to position UHG for long term growth and value creation. Keith FeldmanChief Financial Officer at United Homes Group00:13:16That concludes our prepared remarks. Operator, please open up the line for questions. Operator00:13:40There are no questions at this time. I will now turn the call back over to management for closing remarks. James PirrelloInterim CEO & Director at United Homes Group00:13:47Jack, Keith and I would like to thank all of you for joining us today. I want to thank our entire team for their commitment to our customers, our shareholders, our lenders and each other. We remain optimistic about the future of United Homes Group and look forward to updating you on our second quarter results later this summer. Thank you. Operator00:14:08Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.Read moreParticipantsExecutivesErin Reeves McGinnisGeneral CounselJames PirrelloInterim CEO & DirectorJack MicenkoPresidentKeith FeldmanChief Financial OfficerPowered by Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) United Homes Group Earnings HeadlinesUnited Homes Group: Further Upside Is WarrantedJune 20, 2025 | seekingalpha.comUnitedHealth’s collapse reveals the flaw at the heart of Medicare AdvantageMay 27, 2025 | msn.comTrump’s treachery Trump’s Final Reset Inside the shocking plot to re-engineer America’s financial system…and why you need to move your money now.June 25, 2025 | Porter & Company (Ad)UnitedHealth stock falls after report company paid nursing homes to curtail hospital transfersMay 21, 2025 | msn.comUnitedHealth Stock Drops After Report Insurer Paid Nursing Homes to Curb Hospital TransfersMay 21, 2025 | msn.comUnitedHealth Group shares drop on report of secret nursing home paymentsMay 21, 2025 | in.investing.comSee More United Homes Group Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like United Homes Group? Sign up for Earnings360's daily newsletter to receive timely earnings updates on United Homes Group and other key companies, straight to your email. Email Address About United Homes GroupUnited Homes Group (NASDAQ:UHG), a homebuilding company, engages in the design, building, and sale of homes in South Carolina, North Carolina, and Georgia. It provides detached single-family houses, as well as attached single-family houses, including duplex and town houses for entry-level buyers, first time move-ups, second time move-ups, third time move-ups, and custom builds. 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PresentationSkip to Participants Operator00:00:00Thank you for standing by. My name is Carly, and I will be your conference operator today. At this time, I would like to welcome everyone to the United Home Group First Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Operator00:00:33Thank you. I would now like to turn the call over to Erin Reeves McGinnis, general counsel. Please go ahead. Erin Reeves McGinnisGeneral Counsel at United Homes Group00:00:44Good morning, and welcome to United Homes Group's first quarter of twenty twenty five earnings call. Before the call begins, I would like to note that this call will include forward looking statements within the meaning of the federal securities laws. United Group cautions that forward looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time. These risks and uncertainties include, but are not limited to, the risk factors described by United Homes Group in its filings with the Securities and Exchange Commission. Accordingly, forward looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward looking statements. Erin Reeves McGinnisGeneral Counsel at United Homes Group00:01:20We do not undertake any obligation to update forward looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Additionally, reconciliations of non GAAP financial measures discussed on this call to the most directly comparable GAAP measures can be accessed through the company's website and in its SEC filings. Hosting the call today are United Homes Group's Interim Chief Executive Officer, Jamie Perello President, Jack Maseko and Chief Financial Officer, Keith Feldman. With that, I'd like to turn the call over to Jamie. James PirrelloInterim CEO & Director at United Homes Group00:01:54Thank you for joining us today as we go over our results for the first quarter of twenty twenty five and provide an update on our operations. United Homes Group delivered two fifty two homes in the first quarter with an average sales price on production built homes of $345,000 generating home sales revenue of $87,000,000 Home sales gross margins improved 20 basis points year over year but remained depressed at 16.2% due to elevated incentive activity and our strategic decision to discount move spec inventory. Net new orders came in at two ninety six units. Our sales pace in January and the February was disappointing and did not meet our expectations. As a result, we had fewer homes available to close during the second half of the first quarter. James PirrelloInterim CEO & Director at United Homes Group00:02:43The slower sales pace had a material impact on our results. Like other builders, we saw improved sales in the February. March met our expectations, and April and the May have been good. Overall, I'm pleased with the progress we made on a number of fronts and am encouraged by the operational momentum we carried into the second quarter. As we mentioned in the last quarter, we've undertaken a product refresh and a direct cost reduction initiative that should improve our competitive positioning and profitability. James PirrelloInterim CEO & Director at United Homes Group00:03:14While we are still in the early stages of these initiatives, the initial results have been encouraging. Our newly designed homes have been well received by buyers and generated margins well in excess of the company's average in the first quarter of twenty twenty five. The 23 newly designed homes we closed during the first quarter had an average gross margin of approximately 24%. We closed 27 of these refreshed homes in April. As of Monday, May 12, we had 95 newly designed homes in backlog carrying an average gross margin of approximately 24%. James PirrelloInterim CEO & Director at United Homes Group00:03:48Every day these homes are making up a bigger percentage of our closings in the future. In terms of our cost reduction plan, we have already identified over $3,500,000 of direct construction cost savings for homes expected to be closed in 2025. We achieved this through the competitive rebidding of our agreements with subcontractors and material suppliers. We expect the effects of these cost saving initiatives to begin on a small scale in the second quarter and ramp up through the third and fourth quarters. We have not completed this initiative so we anticipate additional savings. James PirrelloInterim CEO & Director at United Homes Group00:04:23Another initiative we've undertaken to place a greater emphasis on presold homes. In prior quarters, it made sense to carry a higher level of spec inventory given the extended cycle times resulting from the supply chain issues of years past and the entry level buyers' preference for quick moving homes. Now that cycle times have come down and move up buyers have become more active in the market, we have made the strategic decision to shift away from a high spec home strategy and look for a somewhat more balanced approach in our move up product lines. Presales are currently producing much higher margins, especially when compared to the discounting we do on completed spec home inventory. This shift will allow us to capitalize on buyers who are willing and able to pay for what they want in a new home. James PirrelloInterim CEO & Director at United Homes Group00:05:08This includes upgrades such as structural and interior option offerings and other upgrades that we sell at higher margins. It will also give us better visibility into our delivery outlook for the year and reduce the capital tied up in standing inventory. With pre sold homes and newly refreshed products expected to make up a higher percentage of our closings going forward, we are optimistic about the trajectory of our margins. We also remain optimistic about the long term prospects for our markets. The Carolinas and Georgia continue to attract employers to the region due to their business friendly economic climate and attractive quality of life. James PirrelloInterim CEO & Director at United Homes Group00:05:44They also boast better housing affordability relative to most major markets, which has led to consistent in migration from other parts of the country. We continue to see greater opportunities for long term growth in these markets and others throughout the Southeast given these favorable housing fundamentals. As we turn our attention to the latter part of the spring selling season, we remain focused on maintaining a consistent level of new home sales while executing on the initiatives I discussed above. So far this quarter, demand has been fairly solid with April orders up 6% year over year. While incentives continue to run at a higher level than we would like, we believe our improved product design, presold home focus can offset some of that margin impact. James PirrelloInterim CEO & Director at United Homes Group00:06:29As a result, I believe United Homes Group is on the right path to achieve its long term goals. With that, I'd like to turn the call over to Jack who will provide more detail on our operational results this quarter. Jack MicenkoPresident at United Homes Group00:06:40Thanks, Jamie, and good morning, everyone. First quarter of twenty twenty five was a tale of two halves for our company, with the second half being materially better than the first. January started slowly due to normal seasonality and some abnormal snowfall, which impacted our sales efforts. We saw a bounce back in February, and that momentum carried into March. Our profitability also followed a similar trajectory with gross margins improving 400 basis points from the beginning of the quarter through the end. Jack MicenkoPresident at United Homes Group00:07:06As Jamie mentioned, April orders were up 6% year over year. Affordability continues to be an issue for buyers, which has necessitated the use financing incentives to get people to their desired monthly payment. Incentives have been a key selling tool for our industry and a distinct advantage over the resell market where it has come at a cost to our profitability. Financing incentive as a percentage of ASP was 4% for the quarter, which is consistent with the prior quarter. We expect incentive activity to remain elevated. Jack MicenkoPresident at United Homes Group00:07:34We are optimistic that our shift to more presale homes and the appeal of our fresh product will dampen their effect, however, on our margins. We took sixteen days out of our average cycle time in the first quarter as compared to last year. Part of the improvement was a result of labor and material availability returning to pre COVID levels, but another factor has been our focus on becoming a more efficient builder with product rationalization and better build practices. This has been another key initiative for our company in addition to the product improvements, the cost containment measures we've undertaken. We are a returns focused builder, and our ability to build and close homes in a timely manner is an important aspect of that focus. Jack MicenkoPresident at United Homes Group00:08:11Another important aspect of our strategy is to tie up land in a capital efficient manner. At the end of the first quarter, we owned or controlled approximately 7,500 lots. We believe this asset led strategy puts us in a great position to pursue our growth initiatives in a capital efficient, risk averse manner. We are staying disciplined to our underwriting of new land deals given the uncertainty in the market today and continue to work with our land partners on terms of our future lot takedowns. We expect to open 10 new communities in the second quarter and 18 communities in the third quarter, giving our sales efforts a boost. Jack MicenkoPresident at United Homes Group00:08:42Most of these communities will feature our newly refreshed product, which have been selling well and carry higher margins. Given these new community rollouts and the way in which our company's performance improved over the first four months of the year, I'm excited about what's in store for the remainder of 2025. Now I'm going to turn the call over to Keith who will provide more detail on our financial results for the quarter. Keith FeldmanChief Financial Officer at United Homes Group00:09:02Thank you, Jack and Jamie, good morning. For the first quarter of twenty twenty five, we reported net income of $18,200,000 which includes a fair value adjustment of $21,200,000 primarily related to the accounting for the contingent earn out liability, which fluctuates each quarter based on our ending stock price. The earn out will be settled exclusively in common shares upon reaching certain stock price hurdles and will never result in a cash expense for the company. As Jamie mentioned, revenue for the first quarter of twenty twenty five was $87,000,000 a decrease of $13,800,000 or 13.7% from $100,800,000 in the first quarter of twenty twenty four. The year over year decline was primarily driven by lower home closings, partially offset by an increase in average sales price. Keith FeldmanChief Financial Officer at United Homes Group00:09:51Home closings for the first quarter of twenty twenty five totaled two fifty two homes, down from three eleven homes in the prior year period. As we previously mentioned, the industry wide slow start to the year and unusually poor weather in South Carolina negatively impacted our January. While our sales pace began to improve in the February and into March, the slower activity in January impacted our quarterly closings as a large portion of our sales typically close in the latter half of the quarter. The average sales price for production built homes during the quarter was approximately $345,000 a 2.9% increase compared to $335,000 in the first quarter of twenty twenty four. Due to the challenging environment previously discussed, net new orders for the first quarter was two ninety six homes, down from three eighty four homes in the prior year period. Keith FeldmanChief Financial Officer at United Homes Group00:10:46Backlog as of 03/31/2025 stood at two zero one homes, representing approximately $75,300,000 in value. Gross profit for the first quarter of twenty twenty five was $14,100,000 down $2,000,000 or 12.4% from $16,100,000 in the prior year period. Gross margin improved slightly to 16.2% from 16%, driven by lower interest expense and cost of sales as a percentage of revenue, partially offset by elevated incentives and price discounting aimed at accelerating the sales of finished inventory. Adjusted gross margin was 18.8%, down from 20.4%, reflecting the elevated incentive costs and price reduction. We anticipate improvements in our margins throughout the year as our direct cost reduction efforts materialize into earnings savings and homes featuring our Fresh Floor plans start to comprise a larger share of our closings in future quarters. Keith FeldmanChief Financial Officer at United Homes Group00:11:47Selling, general and administrative expenses for the first quarter were $16,200,000 Excluding approximately $2,000,000 in non cash stock based compensation expense, adjusted SG and A totaled $14,200,000 or 16.3% of revenue. In December, we refinanced our standing convertible note debt, which reduced our total debt and lowered our cash interest expense. The refinancing and lower balances on our Wells facility resulted in cash interest expense savings of approximately $1,000,000 in Q1 compared to Q4 of last year. As of today, we have 50 active communities down from 63 a year ago. As Jack noted, the planned rollout of new communities in the second and third quarters is expected to provide a meaningful boost to our sales efforts. Keith FeldmanChief Financial Officer at United Homes Group00:12:34As of 03/31/2025, we controlled approximately 7,500 lots, which include a mix of owned, optioned and land banked assets positioning us to drive future growth and capture market opportunities. We had approximately $86,900,000 of liquidity and cash and availability on our credit facility as of Q1. As we look ahead, we remain focused on execution. While the spring selling season got off to a slower start, we're encouraged by the momentum exiting the quarter into April. We're adapting to shifting market dynamics, staying disciplined in our capital allocation and continuing to position UHG for long term growth and value creation. Keith FeldmanChief Financial Officer at United Homes Group00:13:16That concludes our prepared remarks. Operator, please open up the line for questions. Operator00:13:40There are no questions at this time. I will now turn the call back over to management for closing remarks. James PirrelloInterim CEO & Director at United Homes Group00:13:47Jack, Keith and I would like to thank all of you for joining us today. I want to thank our entire team for their commitment to our customers, our shareholders, our lenders and each other. We remain optimistic about the future of United Homes Group and look forward to updating you on our second quarter results later this summer. Thank you. Operator00:14:08Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.Read moreParticipantsExecutivesErin Reeves McGinnisGeneral CounselJames PirrelloInterim CEO & DirectorJack MicenkoPresidentKeith FeldmanChief Financial OfficerPowered by