Company: UHG
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001830188-25-000036
Chunk: 117

Company: United Homes Group, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 117
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 expense of $0.9 million.

GSH South Carolina: The $4.9 million decrease in income before taxes for the three months ended March 31, 2025 compared to the same period in the prior year was primarily due to a decrease in the number of homes closed of 23.5% and an increase in the average cost of homes closed of 5.6%, partially offset by a decrease in selling, general, and administrative expense of 10.1%.

Rosewood: The $0.9 million decrease in (loss) income before taxes for the three months ended March 31, 2025 compared to the same period in the prior year was primarily due to a decrease in the change in fair value of contingent consideration related to the acquisition of Rosewood Communities, Inc. in 2023 of $0.9 million.

Other: The $0.3 million decrease in loss before taxes for Raleigh for the three months ended March 31, 2025 compared to the same period in the prior year was primarily due to an increase in the number of closings from 4 to 15 homes and a decrease in selling, general, and administrative expense of 10.0%, partially offset by a decrease in ASP of 32.3% due to the community mix of closings.

Income tax benefit: Income tax benefit for the three months ended March 31, 2025 and 2024, was $1.3 million and $1.2 million, respectively. The Company estimates the effective tax rate expected to be applicable for the full fiscal year and this rate is applied to the results for the year-to-date period, and then adjusted for any discrete period items. The Company's estimated annual effective tax rate for the March 31, 2025 is 30.0% as compared to 33.4% as of March 31, 2024.

Net new orders: Net new orders for a period is gross sales of homes less any customer cancellations received during the same period. Sales are recognized when a customer signs a contract and UHG approves such contract. Net new orders for the three months ended March 31, 2025 were 296 units, a decrease of 88 units, or 22.9%, from 384 units for the three months ended March 31, 2024.

Cancellation rate: The cancellation rate is the total cancellations during the period divided by the total number of new sales for homes during the period