Company: SDHC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001982518-25-000064
Chunk: 115

Company: Smith Douglas Homes Corp.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 115
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30, 2024 which did not recur in 2025.

Net debt-to-net book capitalization

Net debt-to-net book capitalization is a supplemental measure of our leverage that is not required by, or presented in accordance with, GAAP and should not be considered as an alternative to debt-to-book capitalization or any other measure derived in accordance with GAAP. We caution investors that amounts presented in accordance with our definition of net debt-to-net book capitalization may not be comparable to similar measures disclosed by our competitors because not all companies and analysts calculate this non-GAAP financial measure in the same manner. We present this non-GAAP financial measure because we consider it to be an important supplemental measure of our leverage and believe it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry.

We define net debt-to-net book capitalization as:

•Total debt, less cash and cash equivalents, divided by

•Total debt, less cash and cash equivalents, plus equity.

This non-GAAP financial measure has limitations as an analytical tool in that it subtracts cash and cash equivalents and therefore may imply that the Company has less debt than the most comparable measure determined in accordance with GAAP. Because of this limitation, this non-GAAP financial measure should be considered along with other financial measures presented in accordance with GAAP. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. We have reconciled this non-GAAP financial measure with the most directly comparable GAAP financial measure in the following table:

As of(in thousands, except percentages)June 30,2025December 31,2024Notes payable$74,088$3,060Equity414,832401,727Total capitalization$488,920$404,787Debt-to-book capitalization15.2%0.8%Notes payable$74,088$3,060Less: cash and cash equivalents16,77722,363Net debt57,311(19,303)Equity414,832401,727Total net capitalization$472,143$382,424Net debt-to-net book capitalization12.1%(5.0)%

Liquidity and Capital Resources

Overview

As of June 30, 2025, we had $16.8 million of cash and cash equivalents. We believe existing cash and cash equivalents, availability under our Am