Company: SDHC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001982518-25-000020
Chunk: 61

Company: Smith Douglas Homes Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 61
---
 

41

accounts payable, which were more than offset by a $19.5 million increase in real estate inventory, $17.0 million increase in deposits on real estate under option or contract, $11.5 million increase in other assets, and $11.9 million decrease in accrued expenses and other liabilities. Operating cash flows for the three months ended March 31, 2024 benefited from cash generated by net income of $20.5 million and non-cash operating expenses of $2.5 million, which were more than offset by a $17.8 million increase in real estate inventory, $7.7 million increase in deposits on real estate under option or contract, and $7.2 million decrease in accrued expenses and other liabilities. 

Investing activities

We used $2.1 million and $0.4 million in net cash in investing activities for the three months ended March 31, 2025 and 2024, respectively. The net cash used in investing activities during the three months ended March 31, 2025 was primarily due to $1.0 million in purchases of property and equipment and $1.1 million in investments in unconsolidated entities. The net cash used in investing activities during the three months ended March 31, 2024 was primarily due to purchases of property and equipment.

Financing activities

We generated $27.3 million and $22.7 million in net cash from financing activities for the three months ended March 31, 2025 and 2024, respectively. The net cash provided by financing activities during the three months ended March 31, 2025 was primarily due to $40.0 million in net borrowings under the Amended Credit Facility, partially offset by $13.9 million in tax distributions. The net cash provided by financing activities during the three months ended March 31, 2024 was primarily due to $116.3 million in net proceeds from the IPO and Reorganization Transactions, partially offset by $71.4 million in net repayments under the Prior Credit Facility and $16.3 million in distributions.

Material Cash Commitments

Other than with respect to the interest on the outstanding borrowings under our Amended Credit Facility, as described above, there have been no material changes to the material cash commitments described in Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report.

Off-Balance Sheet Arrangements

While using land bankers and third-party