Company: SDHC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001982518-25-000064
Chunk: 121

Company: Smith Douglas Homes Corp.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 121
---
 $50.3 million increase in real estate inventory and a $9.2 million increase in deposits on real estate under option or contract. 

Investing activities

We used $4.2 million and $3.2 million in net cash in investing activities for the six months ended June 30, 2025 and 2024, respectively. The net cash used in investing activities during the six months ended June 30, 2025 was primarily due to $3.2 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 six months ended June 30, 2024 was primarily due to $2.6 million in purchases of property and equipment and $0.6 million in investments in unconsolidated entities. 

Financing activities

We generated $62.5 million and $9.9 million in net cash from financing activities for the six months ended June 30, 2025 and 2024, respectively. The net cash provided by financing activities during the six months ended June 30, 2025 was primarily due to $68.9 million in net borrowings under the Amended Credit Facility and $27.1 million in proceeds from sale of real estate not owned, partially offset by $23.6 million in tax distributions, $6.8 million in payments related to repurchases of real estate not owned, and $2.2 million of debt issuance costs. The net cash provided by financing activities during the six months ended June 30, 2024 was primarily due to $115.7 million in net proceeds from the IPO and Reorganization Transactions, partially offset by $71.0 million in net repayments under the Prior Credit Facility and $28.1 million in distributions.

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.

44

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 June 30, 2025, we had 834 owned