Company: SDHC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001982518-25-000064
Chunk: 45

Company: Smith Douglas Homes Corp.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 in May 2030. Subsequent to the purchase of the office building, there are no longer any leasing arrangements with JBB Cherokee Holdings LLC. 

Note 14 ‑ Segment information:

The Company operates one principal homebuilding business that is organized, managed and reported by geographic division. Management of the eight geographic divisions report to the Company's chief operating decision maker (CODM), which consists of the Chief Executive Officer and Chief Financial Officer of the Company. The CODM is regularly provided operating results of individual operating segments. These operating results include key operating metrics which inform the CODM's decisions regarding the allocation of resources and the assessment of the Company's overall operational performance. These operating results are reviewed against actual and budgeted figures, with income before income taxes (segment profit) being the key operating metric used to measure segment profit or loss. The Company's operating segments are aggregated into two reportable segments: Southeast and Central. The Southeast segment consists of the Atlanta, Central Georgia, Charlotte, Greenville, and Raleigh divisions. The Central segment consists of the Alabama, Houston, and Nashville divisions. Each reportable segment follows the accounting policies described in Note 1. As the Central Georgia and Greenville divisions were formed in the second half of 2024, segment information disclosed for the three and six months ended June 30, 2024 does not include these divisions.

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The following tables summarize financial information by segment (in thousands):Three months ended June 30, 2025SoutheastCentralTotalHome closing revenue$141,267 $82,657 $223,924 Cost of home closings104,963 67,022 171,985 Home closing gross profit36,304 15,635 51,939 Less:(1)Selling, general, and administrative expenses(2)14,220 9,149 23,369 Other segment items(3)93 141 234 Segment profit21,991 6,345 28,336 Corporate selling, general, and administrative costs(4)11,333 Other corporate items(5)(176)Income before income taxes$17,179 Three months ended June 30, 2024SoutheastCentralTotalHome closing revenue$124,392 $96,541 $220,933 Cost of home closings87,147 74,728 161,875 Home closing gross profit37,245 21,813 59,058 Less:(1)Selling, general,