Company: SDHC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001982518-25-000020
Chunk: 20

Company: Smith Douglas Homes Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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12

Proceeds from sales of real estate not owned2,699 352 Payments related to repurchases of real estate not owned(1,027)(3,550)Distributions(13,886)(16,259)Payment of debt issuance costs(75)(1,851)Net cash provided by financing activities27,299 22,704    Net (decrease) increase in cash and cash equivalents(9,712)13,001 Cash and cash equivalents, beginning of period22,363 19,777 Cash and cash equivalents, end of period$12,651 $32,778 

See accompanying notes to unaudited condensed consolidated financial statements.

13

SMITH DOUGLAS HOMES CORP.

Condensed Consolidated Statements of Cash Flows - Continued

(Unaudited, in thousands)

Three months ended March 31,20252024Supplemental Disclosure of Cash Flow Information:    Cash paid for interest, net of amounts capitalized$269 $897   Cash paid for income taxes$230 $—   Right-of-use assets obtained in exchange for new operating lease liabilities$64 $— 

See accompanying notes to unaudited condensed consolidated financial statements.

14

SMITH DOUGLAS HOMES CORP.

Notes to Unaudited Condensed Consolidated Financial Statements

Note 1 - Description of business and summary of significant accounting policies:

Nature of businessSmith Douglas Homes Corp. (the Company) was incorporated in the state of Delaware on June 20, 2023 (Date of Formation) for the purpose of facilitating an initial public offering (IPO) of its common stock and executing other related transactions in order to carry on the business of Smith Douglas Holdings LLC and its consolidated subsidiaries as a publicly-traded entity.The Company is a builder of single-family homes in communities in certain markets in the southeastern and southern United States. The Company’s homes and communities are primarily targeted to first-time and empty-nest homebuyers. The Company currently operates in metropolitan Atlanta, Birmingham, Chattanooga, Central Georgia, Charlotte, Greenville, Huntsville, Nashville, Raleigh and Houston. The Company operates a land-light business model whereby the Company typically purchases finished lots via lot-option contracts from various third-party land developers or land bankers. Additionally, the Company offers title insurance services through an unconsolidated title company.Initial Public Offering and Reorganization TransactionsThe Company successfully closed an IPO of 8,846,154 shares of Class A common stock at a public