Company: SDHC
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049591
Chunk: 143

Company: Smith Douglas Homes Corp.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 2
Chunk 143
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income), net, and (ix) real estate inventory impairment and lot option contract abandonment charges. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of home closing revenue.

Management believes EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin are useful because they allow management to more effectively evaluate our operating performance and compare our results of operations from period to period without regard to our financing methods or capital structure, or other items that impact comparability of financial results from period to period. EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin should not be considered as alternatives to, or more meaningful than, net income, net income margin, or any other measure as determined in accordance with GAAP. Our computation of EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin may not be comparable to EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin of other companies. We present EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin because we believe they provide useful information regarding the factors and trends affecting our business.

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The following table presents a reconciliation of EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin to the GAAP financial measure of net income and net income margin for each of the periods indicated:

Three months endedSeptember 30,Nine months endedSeptember 30,2025202420252024Net income$16,215$37,824$51,360$83,044Capitalized interest charged to cost of home closings6983511,2191,405Interest expense8986142,3361,903Interest income(80)(224)(304)(592)Provision for income taxes1,0211,7612,6223,814Depreciation7004191,7661,128EBITDA$19,452$40,745$58,999$90,702Share-based payment expense1,0541,2342,6353,163Purchase accounting adjustments included in cost of home closings120(410)2(670)Remeasurement of contingent consideration liability———1,308Real estate inventory impairment and lot option contract abandonment charges1,580—2,938—Adjusted EBITDA$22,206$41,569$64,574$94,503Net income margin(