Company: SDHC
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049591
Chunk: 122

Company: Smith Douglas Homes Corp.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 122
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, 2025 and 2024, respectively. The net cash used in investing activities during the nine months ended September 30, 2025 was primarily due to $4.5 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 nine months ended September 30, 2024 was primarily due to $3.2 million in purchases of property and equipment and $0.6 million in investments in unconsolidated entities. 

Financing activities

We generated $39.1 million and used $5.9 million in net cash from financing activities for the nine months ended September 30, 2025 and 2024, respectively. The net cash provided by financing activities during the nine months ended September 30, 2025 was primarily due to $49.0 million in net borrowings under the Amended Credit Facility and $36.7 million in proceeds from sale of real estate not owned, partially offset by $28.0 million in tax distributions, $13.7 million in payments related to repurchases of real estate not owned, and $2.2 million of debt issuance costs. The net cash used in financing activities during the nine months ended September 30, 2024 was primarily due to $115.7 million in net proceeds from the IPO and Reorganization Transactions, which were more than offset by $71.0 million in net repayments under the Prior Credit Facility, $39.3 million in distributions, and 12.3 million in payments related to repurchases of real estate not owned.

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 developers as part of our land-light operating strategy comes at an additional cost, we believe our lot acquisition strategy reduces our operating and financial risk relative to other homebuilders that own and develop a higher percentage of their land supply. As of September 30, 2025, we had 641 owned unstarted lots in real estate inventory on our balance sheet which represented only 2.6% of our total controlled lot supply.

Under the umbrella of our land-light strategy, we generally seek to avoid