United Homes Group Inc (UHG) 2024 Q1 法說會逐字稿

Good day, everyone and welcome to the United Homes Group First Quarter 2024 Earnings Call.

大家好，歡迎參加 United Homes Group 2024 年第一季財報電話會議。

(Operator Instructions) Please note this call may be recorded.

（操作員說明）請注意，此通話可能會被錄音。

And I will be standing by, should you need any assistance.

如果您需要任何幫助，我將隨時待命。

It is now my pleasure to turn the conference over to Erin.

現在我很高興將會議交給艾琳。

Please go ahead.

請繼續。

Good morning and welcome to United Homes Group's first quarter of 2024 earnings call.

早上好，歡迎參加 United Homes Group 2024 年第一季財報電話會議。

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.

在電話會議開始之前，我想指出，本次電話會議將包括聯邦證券法含義內的前瞻性陳述。

United Homes Group cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties which change over time.

聯合家園集團警告說，前瞻性陳述受到許多隨著時間的推移而變化的假設、風險和不確定性的影響。

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.

這些風險和不確定性包括但不限於 United Homes Group 在向美國證券交易委員會提交的文件中所述的風險因素。

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.

因此，不應依賴前瞻性陳述來代表我們在任何後續日期的觀點，並且您不應過度依賴這些前瞻性陳述。

We 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.

我們不承擔更新前瞻性聲明以反映前瞻性陳述發布之日後發生的事件或情況的義務，無論是由於新資訊、未來事件或其他原因，除非適用的證券法可能要求。

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.

此外，本次電話會議中討論的非 GAAP 財務指標與最直接可比較的 GAAP 指標的調整表可透過該公司網站及其向 SEC 提交的文件進行查看。

Hosting the call today are United Homes Group’s President, Jack Micenko; Chief Operating Officer, Shelton Twine; and Chief Financial Officer, Keith Feldman.

今天主持電話會議的是 United Homes Group 總裁 Jack Micenko； Shelton Twine 營運長；和財務長基斯·費爾德曼。

With that, I'd like to turn the call over to Jack.

這樣，我想把電話轉給傑克。

Thanks, Erin.

謝謝，艾琳。

Good morning, everyone.

大家，早安。

United Homes Group made progress on a number of fronts in the first quarter of 2024 as we continue to pursue our goal of becoming one of the premier homebuilders in the Southeastern United States.

2024 年第一季度，United Homes Group 在多個方面取得了進展，我們繼續追求成為美國東南部一流住宅建築商之一的目標。

With a focus on affordability, a land-light operating strategy and a strong track record of homebuilding success, United Homes is poised to grow beyond its existing footprint for both strategic M&A and organic growth.

憑藉對可負擔性的關注、輕土地營運策略以及住宅建設成功的良好記錄，United Homes 準備在策略併購和有機成長方面超越其現有足跡。

We continue to see a favorable homebuilding landscape in our markets, thanks to a lack of home inventory in the resale market, continued strong job growth and household formation.

由於轉售市場房屋庫存不足、就業持續強勁成長和家庭形成，我們的市場繼續看到有利的房屋建設前景。

Both companies and families continue to migrate to cities and throughout the Southeast, creating a need for new housing and we plan on capitalizing on this trend for years to come.

公司和家庭繼續遷移到城市和整個東南部，創造了對新住房的需求，我們計劃在未來幾年利用這一趨勢。

As we've stated in the past, M&A will be a key driver of our expansion into new markets.

正如我們過去所說，併購將是我們拓展新市場的關鍵驅動力。

We feel we have a competitive advantage over our peers in our Southeastern roots and our willingness to retain the acquired company's personnel following the transaction.

我們認為，與同業相比，我們在東南部的根基上擁有競爭優勢，並且我們願意在交易後保留被收購公司的人員。

We've already executed a number of acquisitions, most recently in Creekside Custom Homes which closed in the first quarter and further expanded our presence into the coastal region of South Carolina.

我們已經執行了多項收購，最近一次是在第一季度完成的 Creekside Custom Homes 收購，並進一步將我們的業務擴展到南卡羅來納州沿海地區。

The integration of Creekside and the other acquired builders are progressing nicely, and we are excited to have them as part of our team.

Creekside 和其他收購的建築商的整合進展順利，我們很高興他們成為我們團隊的一部分。

We are constantly evaluating possible deals in our markets and hope to add more builders to our platform this year, provided they are a good fit to our company from a financial and cultural perspective.

我們不斷評估市場上可能的交易，並希望今年能在我們的平台上添加更多的建構者，前提是他們從財務和文化的角度來看非常適合我們公司。

We ended the first quarter with just over 11,000 lots owned and controlled, giving us a great runway for future growth.

第一季結束時，我們擁有和控制的土地超過 11,000 塊，為我們未來的成長提供了良好的基礎。

We remain committed to securing our land capital in a capital-efficient manner for the use of options agreements and land banking arrangements.

我們仍然致力於以資本效率高的方式確保我們的土地資本，以使用選擇權協議和土地儲備安排。

We feel that offloading much of the costs associated with land development will allow us to focus on our core competency of building and selling homes.

我們認為，減輕與土地開發相關的大部分成本將使我們能夠專注於建造和銷售房屋的核心能力。

Our land-light efforts got a real boost in the first quarter with our entry in a strategic partnership with a large land banking partner.

隨著我們與一家大型土地儲備合作夥伴建立戰略合作夥伴關係，我們的土地減量工作在第一季得到了真正的推動。

In closing on our initial transaction with that partner, we also then entered into a definitive agreement for a newly created land fund just this week which Keith will speak to in his commentary later.

在完成與該合作夥伴的初步交易後，我們還在本週就新創建的土地基金達成了最終協議，基思將在稍後的評論中談到該協議。

Overall, I'm pleased with our market positioning at the end of the first quarter and remain excited about the opportunities that lie ahead.

總的來說，我對我們在第一季末的市場定位感到滿意，並對未來的機會仍然感到興奮。

We made further progress towards long-term goal of becoming a premier homebuilder in the Southeastern US while maintaining a focus on new home affordability.

我們在成為美國東南部首屈一指的住宅建築商的長期目標方面取得了進一步進展，同時繼續關注新房屋的可負擔性。

We ended the quarter with a sold backlog of 262 homes which represented a 39% increase over the first quarter of 2023, and which should lead to strong cash flow generation in coming quarters.

截至本季末，我們已售出 262 套積壓房屋，比 2023 年第一季增加了 39%，這應該會在未來幾季產生強勁的現金流。

We also maintained a strong balance sheet with over $28 million in cash and $63 million of undrawn revolver capacity under our credit facility.

我們還保持了強勁的資產負債表，在我們的信貸安排下擁有超過 2800 萬美元的現金和 6300 萬美元的未提取左輪手槍容量。

As a result, I believe United Homes Group is well positioned to achieve our goals for 2024 and beyond.

因此，我相信 United Homes Group 完全有能力實現 2024 年及以後的目標。

Now I'd like to turn the call over to Shelton, who will provide some more detail on operations this quarter.

現在我想將電話轉給謝爾頓，他將提供有關本季營運的更多詳細資訊。

Thanks, Jack and good morning to everyone.

謝謝，傑克，大家早安。

United Homes delivered 311 homes in the first quarter of 2024, generating home sales revenue of $101 million.

United Homes 在 2024 年第一季交付了 311 套房屋，房屋銷售收入為 1.01 億美元。

Our midlands division was the biggest contributor to our delivery total, followed by our upstate and coastal divisions.

我們的中部地區是我們交付總量的最大貢獻者，其次是我們的北部和沿海地區。

Construction cycle times have returned to pre-pandemic levels as we saw a real improvement in the availability of labor and materials as compared to last year.

施工週期時間已恢復到疫情前的水平，因為我們看到勞動力和材料的可用性與去年相比有了真正的改善。

We believe this year-over-year improvement in cycle time, along with our 39% unit backlog increase in the quarter, will lead to strong cash flow generation in the coming quarters, as Jack mentioned.

正如 Jack 所提到的，我們相信週期時間的同比改善，以及本季 39% 的單位積壓成長，將導致未來幾季產生強勁的現金流。

We sold 384 homes during the quarter on a sales pace of 2.6 per active community per month.

本季我們售出了 384 套房屋，每個活躍社區每月銷售 2.6 套房屋。

Following the close of the first quarter, we generated 118 new net orders in April which was fairly consistent with March, a signal that demand trends are staying positive as we move through the spring selling season.

第一季結束後，我們在 4 月產生了 118 份新淨訂單，與 3 月相當一致，這表明在我們度過春季銷售季節時，需求趨勢保持積極。

Financing incentives remain an important selling tool at our communities as they help buyers secure a monthly payment that fits within their budget.

融資激勵措施仍然是我們社區的重要銷售工具，因為它們可以幫助買家確保符合其預算的每月付款。

We began the year at elevated incentive levels but were successful in dialing it back as the first quarter progressed.

我們在年初提高了激勵水平，但隨著第一季的進展，我們成功地降低了激勵水平。

We are optimistic this downward trend in incentive levels will continue but much of it will depend on the trajectory of interest rates from here.

我們樂觀地認為，激勵水準的下降趨勢將持續下去，但這在很大程度上將取決於利率的軌跡。

We continue to see motivated, engaged and engaged buyers in our markets thanks to the lack of available supply and the steady flow of new jobs and people into the region.

由於可用供應的缺乏以及新工作和人員的穩定流入該地區，我們在市場上繼續看到積極主動、積極參與的買家。

Our cancellation rate during the quarter was 10%, a level that implies that prospective buyers who move forward with their purchase remain committed and confident in their decision through the home buying process.

本季我們的取消率為 10%，這一水平意味著繼續購買的潛在買家在購房過程中仍然對自己的決定充滿信心。

Overall, we saw solid demand in traffic trends at our communities throughout the first quarter and this carried into April.

總體而言，我們看到整個第一季我們社區的交通趨勢需求強勁，這種情況一直持續到四月。

We continue to strike a balance between price and pace to achieve our desired return goals and deliver homes in a timely manner.

我們繼續在價格和節奏之間取得平衡，以實現我們期望的回報目標並及時交付房屋。

We have a healthy pipeline of lots which will allow us to fulfill our delivery goals for 2024 and beyond and an affordable product focus that meets the needs of most entry-level buyers in our markets in terms of quality and value.

我們擁有健康的產品系列，這將使我們能夠實現 2024 年及以後的交付目標，並以價格實惠的產品為重點，滿足我們市場上大多數入門級買家在品質和價值方面的需求。

While we still have a lot of work to do to become the large-scale southeastern builder that we want to be, I believe we are on the right track to achieve that goal.

雖然我們還有很多工作要做，才能成為我們想要成為的大型東南部建築商，但我相信我們正走在實現這一目標的正確軌道上。

With that, I'd like to turn the call over to Keith, who will provide more detail on our financial results this quarter.

因此，我想將電話轉給基思，他將提供有關我們本季財務業績的更多詳細資訊。

Thank you, Jack and Shelton, and good morning.

謝謝你們，傑克和謝爾頓，早安。

For the first quarter of 2024, net income was $24.9 million which included a change in fair value of $26.4 million, primarily related to the accounting for potential earnout which will fluctuate in our financial statements each quarter based on our ending stock price.

2024 年第一季度，淨利潤為2490 萬美元，其中公允價值變動為2640 萬美元，主要與潛在盈利的會計相關，該盈利將根據我們的期末股價在每個季度的財務報表中波​​動。

This earnout will be paid only in common shares upon reaching certain stock price hurdles and can never result in a cash expense for the company.

該收益將僅在達到某些股價障礙時以普通股形式支付，並且絕不會導致公司產生現金支出。

Revenue for the first quarter of 2024 was $100.8 million compared to $94.8 million for the first quarter of 2023.

2024 年第一季的營收為 1.008 億美元，而 2023 年第一季的營收為 9,480 萬美元。

Home closings during the first quarter of 2024 were 311 homes compared to 328 homes in the first quarter of 2023.

2024 年第一季房屋成交量為 311 套，而 2023 年第一季成交量為 328 套。

Average sales price during the first quarter of 2024 was $335,000 for 286 production-built homes.

2024 年第一季 286 套生產型住宅的平均銷售價格為 335,000 美元。

This compared to an average sales price of $314,000 during the first quarter of 2023 for 294 production-built homes.

相比之下，2023 年第一季 294 套生產型住宅的平均售價為 314,000 美元。

As Shelton mentioned, our net new orders during the first quarter of 2024 were 384 homes compared to 389 homes in the first quarter of 2023.

正如 Shelton 所提到的，我們 2024 年第一季的淨新訂單量為 384 套，而 2023 年第一季為 389 套。

Our backlog at the end of the first quarter was 262 homes with a value of approximately $78.7 million.

截至第一季末，我們的積壓房屋數量為 262 套，價值約為 7,870 萬美元。

Gross profit and gross profit margin for the first quarter of 2024 was $16.1 million and 16% which decreased from $16.8 million and 17.7% for the first quarter of 2023.

2024年第一季的毛利和毛利率分別為1,610萬美元和16%，低於2023年第一季的1,680萬美元和17.7%。

This decrease was driven by a few items, purchase accounting adjustments related to the sold inventory that we acquired from Rosewood and Creekside and increased interest expense on finished inventory.

這一下降是由一些項目、與我們從 Rosewood 和 Creekside 收購的已售庫存相關的採購會計調整以及成品庫存利息支出增加所致。

Excluding these items, adjusted gross profit and adjusted gross profit margin were $20.6 million and 20.4% compared to $19.2 million and 20.2% in the first quarter of 2023.

不包括這些項目，調整後毛利和調整後毛利率分別為 2,060 萬美元和 20.4%，而 2023 年第一季為 1,920 萬美元和 20.2%。

SG&A expense in the first quarter of 2024 was $17.1 million.

2024 年第一季的 SG&A 費用為 1,710 萬美元。

Adjusted for onetime transaction fees and noncash stock-based compensation expense, adjusted SG&A was approximately $14.3 million or 14.2% of revenue for the first quarter.

調整一次性交易費用和非現金股票補償費用後，調整後的 SG&A 約為 1,430 萬美元，佔第一季營收的 14.2%。

As Jack mentioned, we made significant progress this quarter on our land-light initiatives by moving approximately $17 million of finished lots to a large land banking partner.

正如 Jack 所提到的，本季我們將約 1,700 萬美元的成品地塊轉移給大型土地儲備合作夥伴，從​​而在土地減量計畫方面取得了重大進展。

This strategy will allow us to continue to be efficient with our balance sheet capital and take down lots as we are starting new homes.

這項策略將使我們能夠繼續有效地利用我們的資產負債表資本，並在我們建造新房屋時拆除大量土地。

Additionally, we entered into a definitive agreement for newly created land funds for a total amount of up to $150 million which will provide capital for future land development into finished lots in our core markets.

此外，我們還就新設立的土地基金達成了最終協議，總金額高達 1.5 億美元，這將為我們核心市場的成品地塊的未來土地開發提供資金。

As of today, we have 63 active communities, up from 52 as of Q1 2023.

截至目前，我們擁有 63 個活躍社區，而截至 2023 年第一季度，我們有 52 個活躍社區。

As of March 31, 2024, we had approximately 11,000 lots under control from our land development affiliate as well as some third parties.

截至 2024 年 3 月 31 日，我們的土地開發附屬公司以及一些第三方控制約 11,000 個地塊。

We had $29 million in cash and $63 million of availability on our credit facility as of March 31, 2024, resulting in total liquidity of $92 million.

截至 2024 年 3 月 31 日，我們擁有 2,900 萬美元現金和 6,300 萬美元可用信貸額度，流動性總額為 9,200 萬美元。

That concludes our prepared remarks.

我們準備好的演講到此結束。

Operator, please open up the line for questions.

接線員，請開通提問線。

(Operator Instructions) Carl Reichardt, BTIG.

（操作員說明）Carl Reichardt，BTIG。

First, Keith, excluding the purchase accounting impact and the higher interest rate impact on gross margin, can you talk about the travel from last year, the improvement in gross margin and what drove that ex those items?

首先，Keith，排除採購會計影響和較高利率對毛利率的影響，您能談談去年的旅行、毛利率的改善以及除這些項目外的推動因素嗎？

Yes.

是的。

Carl, yes, so if you look at the adjusted gross profit, it was marginally higher.

卡爾，是的，所以如果你看看調整後的毛利，它會稍微高一些。

And it was really -- we have incentives this year as we did last year but the lumber cost really has come down from last year to this year, right?

事實上，我們今年和去年一樣有激勵措施，但木材成本確實從去年到今年有所下降，對嗎？

So remember, at the beginning of last year, we had high lumber costs in our inventory and we burned through that.

所以請記住，去年年初，我們的庫存中有很高的木材成本，但我們卻把它燒光了。

So that gave us a little bit of an uplift in adjusted gross margin.

因此，這使我們的調整後毛利率有所提高。

And then we have incentives which are similar to last year but probably trending up a little bit.

然後我們的激勵措施與去年類似，但可能會上升。

Okay.

好的。

And then Jack, you've been there for I think three quarters now, if I've got it right.

然後，傑克，如果我沒記錯的話，我想你已經在那裡待了四分之三了。

Can you talk about the acquisition environment as you look at it today versus, say, what it was nine months ago?

您能否談談今天的收購環境與九個月前的情況相比？

And how does potential forward deal flow look, given that obviously, a lot of other builders are looking but at the same time, you guys have a value proposition for potential targets that might be very different?

考慮到顯然許多其他建築商正在尋找，但同時，你們對潛在目標的價值主張可能非常不同，那麼潛在的遠期交易流程看起來如何？

So maybe just flesh that out, I'd appreciate it.

所以也許只是充實一下，我會很感激。

Yes.

是的。

Sure, Carl.

當然，卡爾。

Thanks for the question.

謝謝你的提問。

A couple of things.

有幾件事。

To most of the industry observers, it's no secret that M&A activity has picked up.

對大多數產業觀察家來說，併購活動的增加已不是什麼秘密。

There have been, I don't know, Carl, on my account, four or five deals involved public companies in the last six or nine months.

卡爾，我不知道，據我所知，在過去的六、九個月裡，有四五筆交易涉及上市公司。

There's a deal in Texas, at least one in Tennessee, Indiana, a couple of others.

德克薩斯州達成了一項協議，田納西州、印第安納州以及其他幾個州至少達成了一項協議。

So the velocity is picking up.

所以速度正在加快。

We, as you'd expect, took a look at many of those.

正如您所期望的，我們研究了其中的許多內容。

We look at most of the transactions that are in the marketplace.

我們關注市場上的大部分交易。

The broker community certainly understands our strategy and we're one of the calls.

經紀商群當然了解我們的策略，我們也是其中之一。

We've got to look at a couple of other things that we've got to look at: the market, the geography, the footprint, the size, the consideration.

我們還必須考慮其他一些事情：市場、地理位置、足跡、規模、考慮因素。

We'd like to use our equity as much as we can, structure our cash and our capital, because we have to keep the M&A or the organic engine going just as much as the M&A side.

我們希望盡可能多地利用我們的股權，建立我們的現金和資本，因為我們必須保持併購或有機引擎與併購方面一樣多的運作。

Definitely more activity.

肯定要多活動。

Valuations, we don't get a ton of color on them.

估值方面，我們沒有得到太多的資訊。

You can back into it, when some of our peers filed the transactions and evaluations, not surprisingly, have increased.

您可以回到它，當我們的一些同行提交交易和評估時，毫不奇怪地增加了。

And then the last thing for us that's really important is we always need to go into these with a solution for the land ahead of time.

對我們來說，最後一件真正重要的事情是，我們總是需要提前解決這些問題，並為土地提供解決方案。

The land-light strategy for us is non-negotiable.

對我們來說，陸光戰略是沒有商量餘地的。

So if it's a traditional builder with a lot of lots in the balance sheet, we need to have a solve for that.

因此，如果它是一家傳統建築商，資產負債表上有很多地塊，我們就需要解決這個問題。

And when we go back to some of the prepared comments, having that strategic partner now in place on the land bank side and beyond that, multiple conversations with a number of providers, I think positions us well at the point of sale to address that early and more efficiently going forward.

當我們回到一些準備好的評論時，現在在土地儲備方面已經有了戰略合作夥伴，除此之外，與許多供應商進行了多次對話，我認為我們在銷售點處於有利地位，可以儘早解決這個問題並更有效地前進。

But more deal valuations are up, and I don't see that really slowing down.

但更多的交易估值正在上升，我認為這種成長並沒有真正放緩。

We were out at the Builder 100 Conference this week, and you may have seen we were fortunate to win the Builder of the Year award this year, so we were out accepting that.

我們本週參加了 Builder 100 大會，您可能已經看到我們很幸運地贏得了今年的年度建造器獎，所以我們接受了這一獎項。

And a lot of discussion around M&A at that conference.

那次會議上有很多關於併購的討論。

And so I think the color there suggests we're going to see more of the same for the foreseeable future.

所以我認為那裡的顏色表明我們在可預見的未來將會看到更多相同的情況。

Great.

偉大的。

And I meant to say congrats on Builder of the Year, too.

我也想對年度建築商表示祝賀。

I really appreciate the color, guys.

我真的很喜歡這個顏色，夥計們。

(Operator Instructions) It appears that we have no further questions at this time.

（操作員說明）目前看來我們沒有其他問題了。

I will turn the call back to management for closing remarks.

我會將電話轉回管理層以供結束語。

Thank you, everybody, for calling in this morning.

謝謝大家今天早上打電話來。

Appreciate your interest in United Homes Group and look forward to updating everyone as we continue to progress and grow our company.

感謝您對 United Homes Group 的關注，並期待在我們公司不斷進步和發展的過程中向大家通報最新情況。

Thank you.

謝謝。

And this does conclude today's program.

今天的節目到此結束。

Thank you for your participation and you may disconnect at any time.

感謝您的參與，您可以隨時斷開連線。