Landsea Homes Reports First Quarter 2025 Results
-- Home sales revenue increased 2.3% to $299.4 million
-- New home deliveries increased 27.3% to 643 homes
-- Net new home orders of 679 increased 11.1%
-- Home sales gross margin of 13.0%, adjusted home sales gross margin of
20.0%
-- Book value per share of $18.14
DALLAS, May 12, 2025 (GLOBE NEWSWIRE) -- Landsea Homes Corporation (Nasdaq: LSEA) ("Landsea Homes" or the "Company") announced today financial results for the first quarter ended March 31, 2025. For the quarter, the Company reported pretax loss of $9.9 million, net loss of $7.1 million or $0.20 loss per share, and gross margin of 13.0%. The Company reported an adjusted net loss (a non-GAAP measure) of $1.7 million or $0.05 loss per share and adjusted gross margin of 20.0%. Reported pretax income for the prior year period was $0.7 million with net income of $0.7 million, or $0.01 earnings per share. For the prior year period, adjusted net income was $3.5 million, or $0.10 earnings per share and adjusted gross margin was 19.4%.
Operating Results
Total revenue was $310.8 million in the first quarter, up 6% compared to the first quarter of 2024, primarily driven by a 27% increase in homes closed partially offset by a 20% decrease in average selling price as Texas, Florida, and Colorado, which have lower average selling prices than California contributed to our growth in volume and represent a larger portion of our portfolio.
New homes delivered increased 27.3% to 643 homes at an average sales price of $466,000, compared to 505 homes delivered at an average sales price of $579,000 in the first quarter of 2024.
Net new home orders were up 11.1% to 679 homes with a dollar value of $317.8 million, an average sales price of $468,000 and a monthly absorption rate of 3.0 sales per active community. This compares to 611 homes with a dollar value of $336.9 million, an average sales price of $551,000 and a monthly absorption rate of 3.3 sales per active community in the prior year period. As a percentage of gross orders, cancellations equaled 9% as compared to 10% a year ago.
Total homes in backlog were 426 homes with a dollar value of $230.8 million and an average sales price of $542,000 at March 31, 2025. This compares to 623 homes with a dollar value of $380.0 million and an average sales price of $610,000 at March 31, 2024.
Total lots owned or controlled at March 31, 2025, were 10,516 compared to 10,349 at March 31, 2024. We continue to pursue an asset-light strategy, controlling 55% of our lots at the end of the first quarter of 2025 and 45% owned.
Home sales gross margin was 13.0%, or 13.5% excluding the $1.5 million inventory impairment on one of our DFW assets, compared to 14.9% in the prior year period. Adjusted home sales gross margin (a non-GAAP measure) increased 60 bps to 20.0% compared to 19.4% in the prior year period. The decrease in home sales gross margin was primarily attributed to higher discounts and incentives offered to buyers coupled with higher interest costs and costs of purchase accounting adjustments for inventory acquired in recent business combinations.
Net loss attributable to Landsea Homes was $7.3 million compared to net income attributable to Landsea Homes of $0.2 million in the prior year period. Adjusted net loss attributable to Landsea Homes (a non-GAAP measure) was $1.7 million compared to adjusted net income of $3.5 million in the prior year period. Net loss per share on a fully diluted basis was $0.20, compared to earnings per diluted share $0.01 in the first quarter of 2024. Adjusted net loss per share (a non-GAAP measure) on a fully diluted basis was $0.05 compared to adjusted net earnings per diluted share of $0.10 in the first quarter of 2024.
EBITDA was $6.2 million compared to $12.6 million in the prior year period. Adjusted EBITDA (a non-GAAP measure) was $13.5 million compared to $17.0 million in the prior year period.
Balance Sheet
As of March 31, 2025, the Company had total liquidity of $256.3 million consisting of cash and cash equivalents as well as cash held in escrow of $52.3 million and $204.0 million in availability under the Company's $455.0 million unsecured revolving credit facility. Total debt was $727.5 million compared to $725.4 million at December 31, 2024.
Landsea Homes' ratio of debt to capital was 52.1% at March 31, 2025, and the Company's net debt to total capital (a non-GAAP measure) was 48.3% at March 31, 2025.
Conference Call
The Company will hold a conference call May 13, 2025, at 9:00 a.m. Central Time (10:00 a.m. Eastern time) to discuss its first quarter 2025 results.
-- Toll-free dial-in number: 1-800-343-4136 -- International dial-in number: 1-203-518-9843
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 May 27, 2025.
Replay Details:
-- Toll-free replay number: 1-844-512-2921 -- International replay number: 1-412-317-6671 -- Replay ID: 11159059
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$(R)$. 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
March 31, 2025 December 31, 2024
---------------- ---------------------
(dollars in thousands)
Assets
Cash and cash equivalents $ 36,740 $ 53,322
Cash held in escrow 15,563 3,921
Real estate inventories 1,326,498 1,339,082
Due from affiliates 553 419
Goodwill 155,597 155,597
Other assets 147,431 148,996
------------ ---------------
Total assets $ 1,682,382 $ 1,701,337
============ ===============
Liabilities
Accounts payable $ 86,966 $ 86,348
Accrued expenses and other
liabilities 197,703 212,645
Due to affiliates 887 881
Line of credit facility, net 195,330 194,435
Senior notes, net 532,177 530,919
Total liabilities 1,013,063 1,025,228
------------ ---------------
Commitments and contingencies
Equity
Stockholders' equity:
Preferred stock, $0.0001 par
value, 50,000,000 shares
authorized, none issued and
outstanding as of March 31, 2025
and December 31, 2024,
respectively -- --
Common stock, $0.0001 par value,
500,000,000 shares authorized,
41,798,858 issued and 36,402,863
outstanding as of March 31,
2025, 41,712,850 issued and
36,316,855 outstanding as of
December 31, 2024 4 4
Additional paid-in capital 462,709 462,363
Retained earnings 197,561 204,815
------------ ---------------
Total stockholders' equity 660,274 667,182
Noncontrolling interests 9,045 8,927
------------ ---------------
Total equity 669,319 676,109
------------ ---------------
Total liabilities and equity $ 1,682,382 $ 1,701,337
============ ===============
Landsea Homes Corporation
Consolidated Statements of Operations - Unaudited
Three Months Ended March 31,
-----------------------------------------------------
2025 2024
------------------------- --------------------------
(dollars in thousands, except per share amounts)
Revenue
Home sales $ 299,373 $ 292,592
Lot sales and
other 11,438 1,449
----------------- ------------------
Total revenues 310,811 294,041
----------------- ------------------
Cost of sales
Home sales 260,515 248,897
Lot sales and
other 10,728 1,683
----------------- ------------------
Total cost of sales 271,243 250,580
----------------- ------------------
Gross margin
Home sales 38,858 43,695
Lot sales and
other 710 (234)
----------------- ------------------
Total gross margin 39,568 43,461
----------------- ------------------
Sales and marketing
expenses 23,952 18,488
General and
administrative
expenses 26,813 26,082
----------------- ------------------
Total operating
expenses 50,765 44,570
----------------- ------------------
Loss from
operations (11,197) (1,109)
Other income, net 1,300 1,813
Pretax (loss)
income (9,897) 704
Benefit for income
taxes (2,808) (30)
----------------- ------------------
Net (loss) income (7,089) 734
Net income
attributable to
noncontrolling
interests 165 544
----------------- ------------------
Net (loss) income
attributable to
Landsea Homes
Corporation $ (7,254) $ 190
================= ==================
(Loss) income per
share:
Basic $ (0.20) $ 0.01
================= ==================
Diluted $ (0.20) $ 0.01
================= ==================
Weighted average
common shares
outstanding:
Basic 36,334,207 36,279,679
================= ==================
Diluted 36,334,207 36,798,722
================= ==================
Home Deliveries and Home Sales Revenue
Three Months Ended March 31,
2025 2024 % Change
--------------------- --------------------- ------------------------------
Dollar Dollar Dollar
Homes Value ASP Homes Value ASP Homes Value ASP
----- -------- ---- ----- -------- ---- --------- ---------- -------
(dollars in thousands)
Arizona 185 $ 78,895 $426 183 $ 78,741 $430 1% --% (1)%
California 65 49,010 754 146 131,894 903 (55)% (63)% (17)%
Colorado 29 12,735 439 17 8,854 521 71% 44% (16)%
Florida 238 110,591 465 157 72,355 461 52% 53% 1%
Texas 126 48,142 382 2 748 374 6,200% 6,336% 2%
----- ------- ----- -------
Total 643 $299,373 $466 505 $292,592 $579 27% 2% (20)%
===== ======= ===== =======
Net New Home Orders, Dollar Value of Orders, and Monthly
Absorption Rates
Three Months Ended March 31,
--------------------------------------------------------------------------------------------------------------------
2025 2024 % Change
--------------------------------- ----------------------------------- --------------------------------------------
Monthly Monthly Monthly
Dollar Absorption Dollar Absorption Dollar Absorption
Homes Value ASP Rate Homes Value ASP Rate Homes Value ASP Rate
----- -------- ---- ---------- ----- -------- ------ ---------- --------- ---------- ------- ------------
(dollars in thousands)
Arizona 189 $ 80,704 $427 3.8 233 $103,515 $ 444 3.6 (19)% (22)% (4)% 6%
California 84 59,121 704 2.6 107 108,325 1,012 3.7 (21)% (45)% (30)% (30)%
Colorado 33 15,897 482 3.7 23 10,871 473 3.8 43% 46% 2% (3)%
Florida 216 99,639 461 2.9 236 109,533 464 2.7 (8)% (9)% (1)% 7%
Texas 157 62,451 398 2.6 12 4,695 391 13.3 1,208% 1,230% 2% (80)%
----- ------- ----- -------
Total 679 $317,812 $468 3.0 611 $336,939 $ 551 3.3 11% (6)% (15)% (9)%
===== ======= ===== =======
Average Selling Communities
Three Months Ended March 31,
2025 2024 % Change
--------- -------- -------------
Arizona 16.7 21.3 (22)%
California 10.7 9.7 10%
Colorado 3.0 2.0 50%
Florida 24.7 29.3 (16)%
Texas 20.3 0.3 6,667%
Total 75.4 62.6 20%
Backlog
March 31, 2025 March 31, 2024 % Change
--------------------- ----------------------- ---------------------------
Dollar Dollar Dollar
Homes Value ASP Homes Value ASP Homes Value ASP
----- -------- ---- ----- -------- ------ ------- --------- -------
(dollars in thousands)
Arizona 74 $ 35,509 $480 146 $ 66,207 $ 453 (49)% (46)% 6%
California 49 35,588 726 122 134,601 1,103 (60)% (74)% (34)%
Colorado 10 6,566 657 20 9,557 478 (50)% (31)% 37%
Florida 205 114,330 558 325 165,662 510 (37)% (31)% 9%
Texas 88 38,842 441 10 3,947 395 780% 884% 12%
----- ------- ----- -------
Total 426 $230,835 $542 623 $379,974 $ 610 (32)% (39)% (11)%
===== ======= ===== =======
Lots Owned or Controlled
March 31, 2025 March 31, 2024
------------------------- -------------------------
Lots Lots Lots Lots
Owned Controlled Total Owned Controlled Total % Change
----- ---------- ------ ----- ---------- ------ ----------
Arizona 1,211 1,654 2,865 1,505 1,462 2,967 (3)%
California 716 825 1,541 569 1,200 1,769 (13)%
Colorado 213 280 493 168 125 293 68%
Florida 1,255 1,485 2,740 1,800 1,770 3,570 (23)%
Texas 1,315 1,562 2,877 202 1,548 1,750 64%
----- ---------- ------ ----- ---------- ------
Total 4,710 5,806 10,516 4,244 6,105 10,349 2%
===== ========== ====== ===== ========== ======
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, real estate inventories 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 March 31,
----------------------------------------
2025 % 2024 %
-------- --------- -------- ---------
(dollars in thousands)
Home sales revenue $299,373 100.0% $292,592 100.0%
Cost of home sales 260,515 87.0% 248,897 85.1%
------- ----- ------- -----
Home sales gross
margin 38,858 13.0% 43,695 14.9%
Add: Interest in
cost of home sales 13,878 4.6% 10,557 3.6%
Add: Real estate
inventories
impairment 1,500 0.5% -- --%
------- ----- ------- -----
Adjusted home sales
gross margin
excluding interest
and real estate
inventories
impairment 54,236 18.1% 54,252 18.5%
Add: Purchase price
accounting for
acquired inventory 5,619 1.9% 2,456 0.8%
------- ----- ------- -----
Adjusted home sales
gross margin
excluding interest,
real estate
inventories
impairment, and
purchase price
accounting for
acquired inventory $ 59,855 20.0% $ 56,708 19.4%
======= ===== ======= =====
EBITDA and Adjusted EBITDA
The following table presents EBITDA and Adjusted EBITDA for the three months ended March 31, 2025 and 2024. 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 (benefit) expense, (ii) interest expenses, (iii) depreciation and amortization, (iv) real estate inventories impairment and abandoned project costs, (v) purchase accounting adjustments for acquired work in process inventory related to business combinations, (vi) loss on debt modification, (vii) transaction costs, and (viii) write-off of deferred offering 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 March 31,
--------------------------------------
2025 2024
------------------- -----------------
(dollars in thousands)
Net (loss) income $ (7,089) $ 734
Benefit for income taxes (2,808) (30)
Interest in cost of sales 13,915 10,570
Depreciation and amortization
expense 2,148 1,320
----------- ----------
EBITDA 6,166 12,594
Real estate inventories impairment
and abandoned project costs 1,525 256
Purchase price accounting in cost
of home sales 5,619 2,456
Transaction costs 211 1,728
Adjusted EBITDA $ 13,521 $ 17,034
=========== ==========
Adjusted Net Income
Adjusted Net Income 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 at the time 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 to Landsea Homes is calculated by excluding the effects of related party interest that was pushed down by our prior parent company, purchase accounting adjustments for acquired work in process inventory related to business combinations, transaction costs, and real estate inventories impairment and abandoned project costs, and is tax-effected using a blended statutory tax rate. We adjust for the expense of related party interest pushed down from our prior parent company as we have no obligation to repay the debt and related interest. In the comparable prior period, we did not adjust for abandoned project costs or transaction costs. We
have made that change to be more consistent with our adjusted EBITDA add-backs. We adjusted the prior period presented herein to maintain comparability between the periods.
Three Months Ended March 31,
-------------------------------------------------------
2025 2024
---------------------------- -------------------------
(dollars in thousands, except share and per share
amounts)
Net (loss) income
attributable to
Landsea Homes
Corporation $ (7,254) $ 190
Real estate
inventories
impairment and
abandoned
project costs 1,525 256
Pre-Merger
capitalized
related party
interest
included in cost
of sales 9 29
Purchase price
accounting for
acquired
inventory 5,619 2,456
Transaction costs 211 1,728
Total adjustments 7,364 4,469
Tax-effected
adjustments(1) 5,521 3,315
Adjusted net (loss)
income
attributable to
Landsea Homes
Corporation $ (1,733) $ 3,505
Earnings per share
Basic $ (0.20) $ 0.01
=== =================== ===================
Diluted $ (0.20) $ 0.01
=== =================== ===================
Adjusted earnings
per share
Basic $ (0.05) $ 0.10
=== =================== ===================
Diluted $ (0.05) $ 0.10
=== =================== ===================
Weighted shares
outstanding
Weighted average
common shares
outstanding used
in EPS - basic 36,334,207 36,279,679
Weighted average
common shares
outstanding used
in EPS -
diluted 36,334,207 36,798,722
(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.
March 31, 2025 December 31, 2024
------------------ ---------------------
(dollars in thousands)
Total notes and other debts
payable, net $ 727,507 $ 725,354
Total equity 669,319 676,109
---------- -------------
Total capital $ 1,396,826 $ 1,401,463
========== =============
Ratio of debt to capital 52.1% 51.8%
========== =============
Total notes and other debts
payable, net $ 727,507 $ 725,354
Less: cash and cash equivalents 36,740 53,322
Less: cash held in escrow 15,563 3,921
---------- -------------
Net debt 675,204 668,111
Total capital $ 1,396,826 $ 1,401,463
========== =============
Ratio of net debt to total
capital 48.3% 47.7%
========== =============
(END) Dow Jones Newswires
May 12, 2025 20:48 ET (00:48 GMT)
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