Landsea Homes Reports Third Quarter 2024 Results
Landsea Homes reported strong Q3 2024 results with net income up 29% to $11.1 million, or $0.30 per share. Home sales revenue increased 26.2% to $325.6 million, with new home deliveries up 40% to 629 homes. The company achieved a home sales gross margin of 17.1% and adjusted gross margin of 22.8%. Net new home orders increased 28.8% to 626 units. Total revenue rose 22% to $338.5 million, though average selling price decreased 10% to $518,000. The company maintains a strong liquidity position of $263.0 million and expects full-year 2024 deliveries between 2,890 to 3,000 homes.
Landsea Homes ha riportato risultati solidi per il terzo trimestre del 2024, con un utile netto in aumento del 29% a 11,1 milioni di dollari, ovvero 0,30 dollari per azione. Il fatturato delle vendite di case è aumentato del 26,2% a 325,6 milioni di dollari, con nuove consegne di case in aumento del 40% a 629 unità. L'azienda ha raggiunto un margine lordo sulle vendite di case del 17,1% e un margine lordo rettificato del 22,8%. Gli ordini netti di nuove case sono aumentati del 28,8% a 626 unità. Il fatturato totale è aumentato del 22% a 338,5 milioni di dollari, sebbene il prezzo di vendita medio sia diminuito del 10% a 518.000 dollari. L'azienda mantiene una solida posizione di liquidità di 263,0 milioni di dollari e prevede di consegnare tra 2.890 e 3.000 case nel 2024.
Landsea Homes reportó resultados fuertes para el tercer trimestre de 2024, con un ingreso neto que aumentó un 29% hasta 11,1 millones de dólares, o 0,30 dólares por acción. Los ingresos por ventas de viviendas aumentaron un 26,2% alcanzando 325,6 millones de dólares, con nuevas entregas de hogares subiendo un 40% a 629 viviendas. La compañía logró un margen bruto en las ventas de viviendas del 17,1% y un margen bruto ajustado del 22,8%. Los nuevos pedidos netos de viviendas aumentaron un 28,8% a 626 unidades. Los ingresos totales crecieron un 22% a 338,5 millones de dólares, aunque el precio de venta promedio disminuyó un 10% a 518,000 dólares. La empresa mantiene una sólida posición de liquidez de 263,0 millones de dólares y espera entregas durante todo el 2024 entre 2,890 y 3,000 viviendas.
Landsea Homes는 2024년 3분기 강력한 실적을 보고했으며, 순이익이 29% 증가하여 1,110만 달러, 주당 0.30달러에 달했습니다. 주택 판매 수익이 26.2% 증가하여 3억 2,560만 달러에 이르렀고, 신규 주택 인도가 40% 증가하여 629채에 달했습니다. 이 회사는 주택 판매 총 마진이 17.1%이고 조정된 총 마진이 22.8%를 기록했습니다. 순 신규 주택 주문은 28.8% 증가하여 626유닛에 이르렀습니다. 총 수익은 22% 증가하여 3억 3,850만 달러에 달했지만 평균 판매 가격은 10% 감소하여 518,000달러가 되었습니다. 이 회사는 2억 6,300만 달러의 강력한 유동성 위치를 유지하고 있으며, 2024년 전체적으로 2,890채에서 3,000채 사이의 주택 인도를 예상하고 있습니다.
Landsea Homes a rapporté de solides résultats pour le troisième trimestre 2024, avec un revenu net en hausse de 29% à 11,1 millions de dollars, ou 0,30 dollar par action. Le chiffre d'affaires des ventes de maisons a augmenté de 26,2% pour atteindre 325,6 millions de dollars, avec une augmentation des livraisons de maisons nouvelles de 40% à 629 maisons. L'entreprise a atteint une marge brute sur les ventes de maisons de 17,1% et une marge brute ajustée de 22,8%. Les nouvelles commandes nettes de maisons ont augmenté de 28,8% à 626 unités. Le chiffre d'affaires total a augmenté de 22% pour atteindre 338,5 millions de dollars, bien que le prix de vente moyen ait diminué de 10% à 518 000 dollars. L'entreprise maintient une position de liquidité solide de 263,0 millions de dollars et s'attend à livrer entre 2 890 et 3 000 maisons en 2024.
Landsea Homes meldete starke Ergebnisse für das 3. Quartal 2024, mit einem Anstieg des Nettogewinns um 29% auf 11,1 Millionen Dollar oder 0,30 Dollar pro Aktie. Der Umsatz aus Hausverkäufen stieg um 26,2% auf 325,6 Millionen Dollar, wobei die Lieferungen neuer Häuser um 40% auf 629 Häuser anstiegen. Das Unternehmen erzielte eine Bruttomarge von 17,1% aus Hausverkäufen und eine angepasste Bruttomarge von 22,8%. Die Nettobestellungen neuer Häuser stiegen um 28,8% auf 626 Einheiten. Der Gesamtumsatz stieg um 22% auf 338,5 Millionen Dollar, obwohl der durchschnittliche Verkaufspreis um 10% auf 518.000 Dollar fiel. Das Unternehmen hält eine starke Liquiditätsposition von 263,0 Millionen Dollar und erwartet für das Gesamtjahr 2024 Lieferungen zwischen 2.890 und 3.000 Häusern.
- Net income increased 29% to $11.1 million ($0.30 per share)
- Home sales revenue grew 26.2% to $325.6 million
- New home deliveries increased 40% to 629 homes
- Net new home orders up 28.8% to 626 homes
- Total revenue increased 22% to $338.5 million
- Strong liquidity position of $263.0 million
- Average selling price decreased 10% to $518,000
- Home sales gross margin declined to 17.1% from 18.7% year-over-year
- Adjusted gross margin decreased to 22.8% from 24.0% year-over-year
- Cancellation rate increased to 11% from 9% year-over-year
- Total debt increased to $732.1 million from $543.8 million at year-end 2023
Insights
The Q3 2024 results showcase strong operational performance with net income up 29% to
- New home deliveries up
40% to 629 units - Net new orders increased
28.8% to 626 homes - Adjusted net income per share rose
47% to$0.44
The earnings report indicates LSEA's successful adaptation to market conditions through strategic pricing and incentives. The
- Net income increased
29% to$11.1 million or$0.30 per share, a36% increase - Adjusted net income increased
36% to$15.9 million or$0.44 per share, a47% increase - Home sales revenue increased
26.2% to$325.6 million - New home deliveries increased
40% to 629 homes - Net new home orders of 626 increased
28.8% - Home sales gross margin of
17.1% , adjusted home sales gross margin of22.8% - Book value per share of
$18.27
DALLAS, Nov. 04, 2024 (GLOBE NEWSWIRE) -- Landsea Homes Corporation (Nasdaq: LSEA) (“Landsea Homes” or the “Company”) announced today financial results for the third quarter ended September 30, 2024. For the quarter, the Company reported pretax income of
Management Commentary
“Landsea Homes delivered strong top and bottom-line growth in the third quarter of 2024, as new home deliveries increased
Mr. Ho continued, “We saw solid demand in our markets during the quarter, as our High Performance Homes and attractive financing incentives to aid with affordability continued to appeal to homebuyers. Housing fundamentals continue to favor the public builders, driven by a lack of existing home inventory, steady demand and a resilient economy. We believe these factors serve as an excellent backdrop for our company, as we look to grow our existing operations.”
Mr. Ho concluded, “We are starting to see the benefits of our increased size through better terms and pricing from our trade partners and suppliers. We believe this dynamic will continue to benefit our company at the local and national level as we become a bigger player within the industry. With an established presence in several high-growth markets, a differentiated product offering and a solid and improving balance sheet, Landsea Homes is well positioned to finish 2024 on a strong note and carry momentum into the new year.”
Operating Results
Total revenue was
New homes delivered increased
Net new home orders were up
Total homes in backlog were 691 homes with a dollar value of
Total lots owned or controlled at September 30, 2024, were 11,868 compared to 11,203 at September 30, 2023. We continue to pursue an asset-light strategy, controlling
Home sales gross margin was
Net income attributable to Landsea Homes increased
Adjusted EBITDA (a non-GAAP measure) was
Balance Sheet
As of September 30, 2024, the Company had total liquidity of
Landsea Homes’ ratio of debt to capital was
Full Year 2024 Outlook
- New home deliveries anticipated to be in the range of 2,890 to 3,000
- Delivery ASPs expected to be in the range of
$520,000 t o$535,000 - Adjusted home sales gross margin of approximately
21% - Home sales gross margin of approximately
15%
Conference Call
The Company will hold a conference call today at 9:00 a.m. Central Time (10:00 a.m. Eastern time) to discuss its third quarter 2024 results and conduct a question-and-answer session.
- Toll-free dial-in number: 1-800-274-8461
- International dial-in number: 1-203-518-9814
The conference call will be broadcast live and available for replay in the Investors section of the Landsea Homes website at https://ir.landseahomes.com/.
A replay of the conference call will be available approximately three hours after conference end time through November 18, 2024.
Replay Details:
- Toll-free replay number: 1-844-512-2921
- International replay number: 1-412-317-6671
- Replay ID: 11157369
About Landsea Homes Corporation
Landsea Homes Corporation (Nasdaq: LSEA) is a publicly traded residential homebuilder based in Dallas, Texas that designs and builds best-in-class homes and sustainable master-planned communities in some of the nation's most desirable markets. The company has developed homes and communities in New York, Boston, New Jersey, Arizona, Colorado, Florida, Texas and throughout California in Silicon Valley, Los Angeles, and Orange County. Landsea Homes was honored as the Green Home Builder 2023 Builder of the Year, after being named the 2022 winner of the prestigious Builder of the Year award, presented by BUILDER magazine, in recognition of a historical year of transformation.
An award-winning homebuilder that builds suburban, single-family detached and attached homes, mid-and high-rise properties, and master-planned communities, Landsea Homes is known for creating inspired places that reflect modern living and provides homebuyers the opportunity to “Live in Your Element.” Our homes allow people to live where they want to live, how they want to live – in a home created especially for them.
Driven by a pioneering commitment to sustainability, Landsea Homes’ High Performance Homes are responsibly designed to take advantage of the latest innovations with home automation technology supported by Apple®. Homes include features that make life easier and provide energy savings that allow for more comfortable living at a lower cost through sustainability features that contribute to healthier living for both homeowners and the planet.
Led by a veteran team of industry professionals who boast years of worldwide experience and deep local expertise, Landsea Homes is committed to positively enhancing the lives of our homebuyers, employees, and stakeholders by creating an unparalleled lifestyle experience that is unmatched.
For more information on Landsea Homes, visit: www.landseahomes.com.
Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws, including, but not limited to, our expectations for future financial performance, business strategies or expectations for our business. These statements constitute projections, forecasts, and forward-looking statements, and are not guarantees of performance. Landsea Homes cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Words such as “may,” “can,” “should,” “will,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “target,” “look” or similar expressions may identify forward-looking statements. Specifically, forward-looking statements may include statements relating to the future financial performance of Landsea Homes; changes in the market for Landsea Homes’ products and services; and other expansion plans and opportunities.
These forward-looking statements are based on information available as of the date of this press release and our management’s current expectations, forecasts, and assumptions, and involve a number of judgments, risks and uncertainties that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.
These risks and uncertainties include, but are not limited to, the risk factors described by Landsea Homes in its filings with the Securities and Exchange Commission (“SEC”). These risk factors and those identified elsewhere in this press release, among others, could cause actual results to differ materially from historical performance and include, but are not limited to:
- the cyclical nature of our industry and the possibility that adverse changes in general and local economic conditions could reduce the demand for homes;
- our ability to develop communities successfully and in a timely manner;
- changes in the terms and availability of mortgage financing, interest rates, federal lending programs, and tax laws, affecting the demand for and the ability of our homebuyers to complete the purchase of a home;
- our geographic concentration, which could materially and adversely affect us if the homebuilding industry in our current markets should experience a decline;
- the potential for adverse weather and geological conditions to increase costs, cause project delays or reduce consumer demand for housing;
- our ability to promptly sell one or more properties for reasonable prices in response to changing economic, financial and investment conditions, and the risk that we may be forced to hold non-income producing properties for extended periods of time;
- our reliance on third-party skilled labor, suppliers and long supply chains;
- the dependence of our long-term sustainability and growth upon our ability to acquire lots that are either developed or have the approvals necessary for us to develop them; and
- the other risks and uncertainties indicated in Landsea Homes’ SEC reports or documents filed or to be filed with the SEC by Landsea Homes.
Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward-looking statements in deciding whether to invest in our securities. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Stock Repurchase
Under its stock repurchase program, Landsea Homes may purchase its common stock in open market transactions effected through a broker-dealer at prevailing market prices, in block trades, or by other means in accordance with federal securities laws, including pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The Company is not obligated to repurchase any specific number or amount of shares of common stock, and it may modify, suspend or discontinue the program at any time. The Company will determine the timing and amount of repurchase in its discretion based on a variety of factors, such as the market price of the Company’s common stock, corporate requirements, general market economic conditions and legal requirements.
Investor Relations Contact:
Drew Mackintosh, CFA
Mackintosh Investor Relations, LLC
drew@mackintoshir.com
(310) 924-9036
Media Contact:
Annie Noebel
Cornerstone Communications
anoebel@cornerstonecomms.com
(949) 449-2527
Landsea Homes Corporation
Consolidated Balance Sheets - Unaudited
September 30, 2024 | December 31, 2023 | ||||
(dollars in thousands) | |||||
Assets | |||||
Cash and cash equivalents | $ | 32,198 | $ | 119,555 | |
Cash held in escrow | 4,054 | 49,091 | |||
Real estate inventories | 1,408,277 | 1,121,726 | |||
Due from affiliates | 5,429 | 4,348 | |||
Goodwill | 155,597 | 68,639 | |||
Other assets | 121,056 | 107,873 | |||
Total assets | $ | 1,726,611 | $ | 1,471,232 | |
Liabilities | |||||
Accounts payable | $ | 95,923 | $ | 77,969 | |
Accrued expenses and other liabilities | 216,647 | 160,256 | |||
Due to affiliates | 881 | 881 | |||
Line of credit facility, net | 202,477 | 307,631 | |||
Senior notes, net | 529,661 | 236,143 | |||
Total liabilities | 1,045,589 | 782,880 | |||
Commitments and contingencies | |||||
Equity | |||||
Stockholders’ equity: | |||||
Preferred stock, | — | — | |||
Common stock, | 4 | 4 | |||
Additional paid-in capital | 461,059 | 465,290 | |||
Retained earnings | 201,769 | 187,584 | |||
Total stockholders’ equity | 662,832 | 652,878 | |||
Noncontrolling interests | 18,190 | 35,474 | |||
Total equity | 681,022 | 688,352 | |||
Total liabilities and equity | $ | 1,726,611 | $ | 1,471,232 | |
Landsea Homes Corporation
Consolidated Statements of Operations - Unaudited
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
(dollars in thousands, except per share amounts) | ||||||||||||
Revenue | ||||||||||||
Home sales | $ | 325,610 | $ | 258,062 | $ | 1,036,384 | $ | 790,199 | ||||
Lot sales and other | 12,862 | 19,286 | 27,272 | 22,133 | ||||||||
Total revenues | 338,472 | 277,348 | 1,063,656 | 812,332 | ||||||||
Cost of sales | ||||||||||||
Home sales | 270,091 | 209,753 | 874,724 | 647,642 | ||||||||
Lot sales and other | 9,564 | 13,309 | 22,478 | 15,770 | ||||||||
Total cost of sales | 279,655 | 223,062 | 897,202 | 663,412 | ||||||||
Gross margin | ||||||||||||
Home sales | 55,519 | 48,309 | 161,660 | 142,557 | ||||||||
Lot sales and other | 3,298 | 5,977 | 4,794 | 6,363 | ||||||||
Total gross margin | 58,817 | 54,286 | 166,454 | 148,920 | ||||||||
Sales and marketing expenses | 23,445 | 16,930 | 66,596 | 51,672 | ||||||||
General and administrative expenses | 21,932 | 25,463 | 77,569 | 74,223 | ||||||||
Total operating expenses | 45,377 | 42,393 | 144,165 | 125,895 | ||||||||
Income from operations | 13,440 | 11,893 | 22,289 | 23,025 | ||||||||
Other income (expense), net | 1,449 | 656 | (2,091 | ) | 2,770 | |||||||
Pretax income | 14,889 | 12,549 | 20,198 | 25,795 | ||||||||
Provision for income taxes | 3,498 | 3,066 | 4,838 | 6,323 | ||||||||
Net income | 11,391 | 9,483 | 15,360 | 19,472 | ||||||||
Net income attributable to noncontrolling interests | 281 | 887 | 1,175 | 2,711 | ||||||||
Net income attributable to Landsea Homes Corporation | $ | 11,110 | $ | 8,596 | $ | 14,185 | $ | 16,761 | ||||
Income per share: | ||||||||||||
Basic | $ | 0.31 | $ | 0.22 | $ | 0.39 | $ | 0.43 | ||||
Diluted | $ | 0.30 | $ | 0.22 | $ | 0.39 | $ | 0.42 | ||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 36,279,056 | 38,336,100 | 36,252,957 | 39,402,507 | ||||||||
Diluted | 36,497,337 | 38,440,392 | 36,548,768 | 39,549,035 | ||||||||
Home Deliveries and Home Sales Revenue
Three Months Ended September 30, | ||||||||||||||||||||||||
2024 | 2023 | % Change | ||||||||||||||||||||||
Homes | Dollar Value | ASP | Homes | Dollar Value | ASP | Homes | Dollar Value | ASP | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Arizona | 192 | $ | 85,333 | $ | 444 | 115 | $ | 50,314 | $ | 438 | 67 | % | 70 | % | 1 | % | ||||||||
California | 110 | 96,900 | 881 | 115 | 103,982 | 904 | (4)% | (7)% | (3)% | |||||||||||||||
Colorado | 40 | 18,881 | 472 | — | — | N/A | N/A | N/A | N/A | |||||||||||||||
Florida | 162 | 72,768 | 449 | 218 | 103,766 | 476 | (26)% | (30)% | (6)% | |||||||||||||||
Metro New York | — | — | N/A | — | — | N/A | N/A | N/A | N/A | |||||||||||||||
Texas | 125 | 51,728 | 414 | — | — | N/A | N/A | N/A | N/A | |||||||||||||||
Total | 629 | $ | 325,610 | $ | 518 | 448 | $ | 258,062 | $ | 576 | 40 | % | 26 | % | (10)% | |||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2024 | 2023 | % Change | ||||||||||||||||||||||
Homes | Dollar Value | ASP | Homes | Dollar Value | ASP | Homes | Dollar Value | ASP | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Arizona | 588 | $ | 260,325 | $ | 443 | 445 | $ | 193,438 | $ | 435 | 32 | % | 35 | % | 2 | % | ||||||||
California | 395 | 363,005 | 919 | 315 | 270,756 | 860 | 25 | % | 34 | % | 7 | % | ||||||||||||
Colorado | 81 | 37,936 | 468 | — | — | N/A | N/A | N/A | N/A | |||||||||||||||
Florida | 604 | 275,133 | 456 | 694 | 320,162 | 461 | (13)% | (14)% | (1)% | |||||||||||||||
Metro New York | 1 | 4,475 | 4,475 | 1 | 1,649 | 1,649 | — | % | 171 | % | 171 | % | ||||||||||||
Texas | 225 | 95,510 | 424 | 4 | 4,194 | 1,049 | 5,525 | % | 2,177 | % | (60)% | |||||||||||||
Total | 1,894 | $ | 1,036,384 | $ | 547 | 1,459 | $ | 790,199 | $ | 542 | 30 | % | 31 | % | 1 | % | ||||||||
Net New Home Orders, Dollar Value of Orders, and Monthly Absorption Rates
Three Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | % Change | ||||||||||||||||||||
Homes | Dollar Value | ASP | Monthly Absorption Rate | Homes | Dollar Value | ASP | Monthly Absorption Rate | Homes | Dollar Value | ASP | Monthly Absorption Rate | |||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Arizona | 192 | $ | 85,689 | $ | 446 | 3.4 | 136 | $ | 59,444 | $ | 437 | 2.7 | 41 | % | 44 | % | 2 | % | 26 | % | ||
California | 70 | 54,020 | 772 | 2.3 | 140 | 128,352 | 917 | 4.1 | (50)% | (58)% | (16 | %) | (44)% | |||||||||
Colorado | 24 | 11,462 | 478 | 2.7 | — | — | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||
Florida | 209 | 103,584 | 496 | 2.3 | 210 | 97,245 | 463 | 2.3 | — | % | 7 | % | 7 | % | — | % | ||||||
Metro New York | — | — | N/A | N/A | — | — | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||
Texas | 131 | 52,834 | 403 | 2.1 | — | — | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||
Total | 626 | 307,589 | $ | 491 | 2.5 | 486 | 285,041 | $ | 587 | 2.7 | 29 | % | 8 | % | (16)% | (7)% | ||||||
Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | % Change | ||||||||||||||||||||
Homes | Dollar Value | ASP | Monthly Absorption Rate | Homes | Dollar Value | ASP | Monthly Absorption Rate | Homes | Dollar Value | ASP | Monthly Absorption Rate | |||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Arizona | 644 | $ | 289,652 | $ | 450 | 3.5 | 474 | $ | 201,452 | $ | 425 | 3.2 | 36 | % | 44 | % | 6 | % | 9 | % | ||
California | 305 | 264,503 | 867 | 3.5 | 520 | 446,045 | 858 | 4.9 | (41)% | (41)% | 1 | % | (29)% | |||||||||
Colorado | 81 | 37,253 | 460 | 3.3 | — | — | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||
Florida | 731 | 346,195 | 474 | 2.7 | 551 | 240,269 | 436 | 2.1 | 33 | % | 44 | % | 9 | % | 29 | % | ||||||
Metro New York | 1 | 4,475 | 4,475 | N/A | — | — | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||
Texas | 236 | 96,675 | 410 | 1.9 | 4 | 4,194 | 1,049 | 1.5 | 5,800 | % | 2,205 | % | (61)% | 27 | % | |||||||
Total | 1,998 | $ | 1,038,753 | $ | 520 | 2.9 | 1,549 | $ | 891,960 | $ | 576 | 3.0 | 29 | % | 16 | % | (10)% | (3)% | ||||
Average Selling Communities
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||
Arizona | 19.0 | 17.0 | 12 | % | 20.3 | 16.7 | 22 | % | ||
California | 10.0 | 11.3 | (12)% | 9.8 | 11.8 | (17)% | ||||
Colorado | 3.0 | — | N/A | 2.7 | — | N/A | ||||
Florida | 30.3 | 31.0 | (2)% | 29.8 | 29.5 | 1 | % | |||
Metro New York | — | — | N/A | — | — | N/A | ||||
Texas | 21.0 | — | N/A | 14.1 | 0.3 | 4,600 | % | |||
Total | 83.3 | 59.3 | 40 | % | 76.7 | 58.3 | 32 | % | ||
Backlog
September 30, 2024 | September 30, 2023 | % Change | ||||||||||||||||||||||
Homes | Dollar Value | ASP | Homes | Dollar Value | ASP | Homes | Dollar Value | ASP | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Arizona | 152 | $ | 70,760 | $ | 466 | 134 | $ | 58,000 | $ | 433 | 13 | % | 22 | % | 8 | % | ||||||||
California | 71 | 59,668 | 840 | 284 | 253,735 | 893 | (75)% | (76)% | (6)% | |||||||||||||||
Colorado | 14 | 6,857 | 490 | — | — | N/A | N/A | N/A | N/A | |||||||||||||||
Florida | 373 | 199,546 | 535 | 342 | 171,004 | 500 | 9 | % | 17 | % | 7 | % | ||||||||||||
Metro New York | — | — | N/A | — | — | N/A | N/A | N/A | N/A | |||||||||||||||
Texas(1) | 81 | 36,283 | 448 | — | — | N/A | N/A | N/A | N/A | |||||||||||||||
Total | 691 | $ | 373,114 | $ | 540 | 760 | $ | 482,739 | $ | 635 | (9)% | (23)% | (15)% |
(1) Backlog acquired in Texas at the date of the Antares acquisition was 70 homes with a value of
Lots Owned or Controlled
September 30, 2024 | September 30, 2023 | |||||||||||||
Lots Owned | Lots Controlled | Total | Lots Owned | Lots Controlled | Total | % Change | ||||||||
Arizona | 1,476 | 1,412 | 2,888 | 1,833 | 1,534 | 3,367 | (14)% | |||||||
California | 654 | 950 | 1,604 | 718 | 1,415 | 2,133 | (25)% | |||||||
Colorado | 144 | 224 | 368 | — | — | — | N/A | |||||||
Florida | 1,896 | 1,532 | 3,428 | 2,388 | 1,606 | 3,994 | (14)% | |||||||
Metro New York | 1 | — | 1 | 2 | — | 2 | (50)% | |||||||
Texas | 1,077 | 2,502 | 3,579 | 130 | 1,577 | 1,707 | 110 | % | ||||||
Total | 5,248 | 6,620 | 11,868 | 5,071 | 6,132 | 11,203 | 6 | % | ||||||
Home Sales Gross Margins
Home sales gross margin measures the price achieved on delivered homes compared to the costs needed to build the home. In the following table, we calculate gross margins adjusting for interest in cost of sales, inventory impairments, and purchase price accounting for acquired work in process inventory. This non-GAAP financial measure should not be used as a substitute for the Company's operating results in accordance with GAAP. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. We believe the below information is meaningful as it isolates the impact that indebtedness, impairments, and acquisitions have on our gross margins and allows for comparability to previous periods and competitors.
Three Months Ended September 30, | |||||||||||
2024 | % | 2023 | % | ||||||||
(dollars in thousands) | |||||||||||
Home sales revenue | $ | 325,610 | 100.0 | % | $ | 258,062 | 100.0 | % | |||
Cost of home sales | 270,091 | 82.9 | % | 209,753 | 81.3 | % | |||||
Home sales gross margin | 55,519 | 17.1 | % | 48,309 | 18.7 | % | |||||
Add: Interest in cost of home sales | 12,285 | 3.8 | % | 9,713 | 3.8 | % | |||||
Add: Real estate inventories impairment | 800 | 0.2 | % | — | — | % | |||||
Adjusted home sales gross margin excluding interest and real estate inventories impairment | 68,604 | 21.1 | % | 58,022 | 22.5 | % | |||||
Add: Purchase price accounting for acquired inventory | 5,604 | 1.7 | % | 3,865 | 1.5 | % | |||||
Adjusted home sales gross margin excluding interest, real estate inventories impairment, and purchase price accounting for acquired inventory | $ | 74,208 | 22.8 | % | $ | 61,887 | 24.0 | % | |||
Nine Months Ended September 30, | |||||||||||
2024 | % | 2023 | % | ||||||||
(dollars in thousands) | |||||||||||
Home sales revenue | $ | 1,036,384 | 100.0 | % | $ | 790,199 | 100.0 | % | |||
Cost of home sales | 874,724 | 84.4 | % | 647,642 | 82.0 | % | |||||
Home sales gross margin | 161,660 | 15.6 | % | 142,557 | 18.0 | % | |||||
Add: Interest in cost of home sales | 39,916 | 3.9 | % | 21,531 | 2.7 | % | |||||
Add: Real estate inventories impairment | 800 | 0.1 | % | 4,700 | 0.6 | % | |||||
Adjusted home sales gross margin excluding interest and real estate inventories impairment | 202,376 | 19.5 | % | 168,788 | 21.4 | % | |||||
Add: Purchase price accounting for acquired inventory | 16,679 | 1.6 | % | 14,060 | 1.8 | % | |||||
Adjusted home sales gross margin excluding interest, real estate inventories impairment, and purchase price accounting for acquired inventory | $ | 219,055 | 21.1 | % | $ | 182,848 | 23.1 | % | |||
EBITDA and Adjusted EBITDA
The following table presents EBITDA and Adjusted EBITDA for the three months ended September 30, 2024 and 2023. Adjusted EBITDA is a non-GAAP financial measure used by management in evaluating operating performance. We define Adjusted EBITDA as net income before (i) income tax expense (benefit), (ii) interest expenses, (iii) depreciation and amortization, (iv) inventory impairments, (v) purchase accounting adjustments for acquired work in process inventory related to business combinations, (vi) loss on debt modification, (vii) transaction costs related to the Merger and business combinations, (viii) write-off of deferred offering costs, and (ix) abandoned projects costs. We believe Adjusted EBITDA provides an indicator of general economic performance that is not affected by fluctuations in interest, effective tax rates, levels of depreciation and amortization, and items considered to be non-recurring. Accordingly, we believe this measure is useful for comparing our core operating performance from period to period. Our presentation of Adjusted EBITDA should not be considered as an indication that our future results will be unaffected by unusual or non-recurring items.
Three Months Ended September 30, | ||||||
2024 | 2023 | |||||
(dollars in thousands) | ||||||
Net income | $ | 11,391 | $ | 9,483 | ||
Provision for income taxes | 3,498 | 3,066 | ||||
Interest in cost of sales | 13,643 | 10,006 | ||||
Depreciation and amortization expense | 2,129 | 1,221 | ||||
EBITDA | 30,661 | 23,776 | ||||
Real estate inventories impairment | 800 | — | ||||
Purchase price accounting in cost of home sales | 5,604 | 3,865 | ||||
Transaction costs | 664 | 600 | ||||
Abandoned project costs | (52 | ) | 433 | |||
Adjusted EBITDA | $ | 37,677 | $ | 28,674 |
Nine Months Ended September 30, | |||||
2024 | 2023 | ||||
(dollars in thousands) | |||||
Net income | $ | 15,360 | $ | 19,472 | |
Provision for income taxes | 4,838 | 6,323 | |||
Interest in cost of sales | 42,224 | 21,878 | |||
Depreciation and amortization expense | 5,299 | 3,778 | |||
EBITDA | 67,721 | 51,451 | |||
Real estate inventories impairment | 800 | 4,700 | |||
Purchase price accounting in cost of home sales | 16,679 | 14,060 | |||
Transaction costs | 5,253 | 633 | |||
Write-off of offering costs | — | 436 | |||
Abandoned project costs | 1,902 | 745 | |||
Loss on debt modification | 5,180 | — | |||
Adjusted EBITDA | $ | 97,535 | $ | 72,025 | |
Adjusted Net Income
Adjusted Net Income attributable to Landsea Homes is a non-GAAP financial measure that we believe is useful to management, investors and other users of our financial information in evaluating and understanding our operating results without the effect of certain expenses that were historically pushed down by our parent company and other non-recurring items. We believe excluding these items provides a more comparable assessment of our financial results from period to period. Adjusted Net Income attributable to Landsea Homes is calculated by excluding the effects of related party interest that was pushed down by our parent company, purchase accounting adjustments for acquired work in process inventory related to business combinations, loss on debt modification, and inventory impairment, and tax-effected using a blended statutory tax rate. We also adjust for the expense of related party interest pushed down from our parent company as we have no obligation to repay the debt and related interest.
Three Months Ended September 30, | |||||
2024 | 2023 | ||||
(dollars in thousands, except share and per share amounts) | |||||
Net income attributable to Landsea Homes Corporation | $ | 11,110 | $ | 8,596 | |
Real estate inventories impairment | 800 | — | |||
Pre-Merger capitalized related party interest included in cost of sales | 10 | 324 | |||
Purchase price accounting for acquired inventory | 5,604 | 3,865 | |||
Total adjustments | 6,414 | 4,189 | |||
Tax-effected adjustments (1) | 4,783 | 3,088 | |||
Adjusted net income attributable to Landsea Homes Corporation | $ | 15,893 | $ | 11,684 | |
Earnings per share | |||||
Basic | $ | 0.31 | $ | 0.22 | |
Diluted | $ | 0.30 | $ | 0.22 | |
Adjusted earnings per share | |||||
Basic | $ | 0.44 | $ | 0.30 | |
Diluted | $ | 0.44 | $ | 0.30 | |
Weighted average common shares outstanding used in EPS - basic | 36,279,056 | 38,336,100 | |||
Weighted average common shares outstanding used in EPS - diluted | 36,497,337 | 38,440,392 |
(1) Our tax-effected adjustments are based on our federal rate and a blended state rate adjusted for certain discrete items.
Nine Months Ended September 30, | |||||
2024 | 2023 | ||||
(dollars in thousands, except share and per share amounts) | |||||
Net income attributable to Landsea Homes Corporation | $ | 14,185 | $ | 16,761 | |
Real estate inventories impairment | 800 | 4,700 | |||
Pre-Merger capitalized related party interest included in cost of sales | 129 | 1,587 | |||
Purchase price accounting for acquired inventory | 16,679 | 14,060 | |||
Loss on debt modification | 5,180 | — | |||
Total adjustments | 22,788 | 20,347 | |||
Tax-effected adjustments (1) | 16,994 | 14,997 | |||
Adjusted net income attributable to Landsea Homes Corporation | $ | 31,179 | $ | 31,758 | |
Earnings per share | |||||
Basic | $ | 0.39 | $ | 0.43 | |
Diluted | $ | 0.39 | $ | 0.42 | |
Adjusted earnings per share | |||||
Basic | $ | 0.86 | $ | 0.81 | |
Diluted | $ | 0.85 | $ | 0.80 | |
Weighted shares outstanding | |||||
Weighted average common shares outstanding used in EPS - basic | 36,252,957 | 39,402,507 | |||
Weighted average common shares outstanding used in EPS - diluted | 36,548,768 | 39,549,035 |
(1) Our tax-effected adjustments are based on our federal rate and a blended state rate adjusted for certain discrete items.
Net Debt to Total Capital
The following table presents the ratio of debt to capital as well as the ratio of net debt to total capital which is a non-GAAP financial measure. The ratio of debt to capital is computed as the quotient obtained by dividing total debt, net of issuance costs, by total capital (sum of total debt, net of issuance costs, plus total equity).
The non-GAAP ratio of net debt to total capital is computed as the quotient obtained by dividing net debt (which is total debt, net of issuance costs, less cash and cash equivalents as well as cash held in escrow to the extent necessary to reduce the debt balance to zero) by total capital. The most comparable GAAP financial measure is the ratio of debt to capital. We believe the ratio of net debt to total capital is a relevant financial measure for investors to understand the leverage employed in our operations and as an indicator of our ability to obtain financing. We believe that by deducting our cash from our debt, we provide a measure of our indebtedness that takes into account our cash liquidity. We believe this provides useful information as the ratio of debt to capital does not take into account our liquidity and we believe that the ratio of net debt to total capital provides supplemental information by which our financial position may be considered.
See table below reconciling this non-GAAP measure to the ratio of debt to capital.
September 30, 2024 | December 31, 2023 | ||||||
(dollars in thousands) | |||||||
Total notes and other debts payable, net | $ | 732,138 | $ | 543,774 | |||
Total equity | 681,022 | 688,352 | |||||
Total capital | $ | 1,413,160 | $ | 1,232,126 | |||
Ratio of debt to capital | 51.8 | % | 44.1 | % | |||
Total notes and other debts payable, net | $ | 732,138 | $ | 543,774 | |||
Less: cash and cash equivalents | 32,198 | 119,555 | |||||
Less: cash held in escrow | 4,054 | 49,091 | |||||
Net debt | 695,886 | 375,128 | |||||
Total capital | $ | 1,413,160 | $ | 1,232,126 | |||
Ratio of net debt to total capital | 49.2 | % | 30.4 | % |
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