Q2 2024 Landsea Homes Corp Earnings Call Transcript
Key Points
- Landsea Homes Corp (LSEA) reported a 47% increase in revenue for Q2 2024, reaching $431 million compared to the same period in 2023.
- The company achieved a 41% year-over-year growth in home deliveries, totaling 760 units, surpassing their guidance.
- Landsea Homes Corp (LSEA) saw a 35% increase in net new orders compared to Q2 2023, driven by strong demand and effective use of financing incentives.
- The average community count increased by 47% year-over-year, contributing to economies of scale and improved SG&A ratio by 220 basis points.
- The company ended the quarter with a strong liquidity position of $330 million, including $106 million in cash and cash equivalents.
- The gross margin of 14.9% was below the low end of guidance due to larger-than-expected purchase price accounting impacts.
- Incentives and discounts remained elevated at roughly 6% of revenue, affecting gross margins.
- The net income for Q2 2024 was $2.9 million, a decrease from $4.9 million in Q2 2023, partly due to one-time transaction costs.
- There was an increase in home inventory in some markets, particularly Texas and Florida, which could impact demand.
- Land costs are rising, potentially offsetting savings from lower lumber costs, posing a challenge to maintaining margins.
Please standby. (Operator Instructions) Good day everyone and welcome to today's Landsea Homes Corporation second quarter 2024 earnings call. (Operator Instructions) Please note that this call may be recorded (Operator Instructions)
It is now my pleasure to turn today's call over to Drew Mackintosh, Investor Relations. Please go ahead.
Good morning and welcome to Landsea Homes second quarter of 2024 earnings call. Before the call begins, I would like to note that this call will include forward-looking statements within the meaning of the federal securities laws.
Landsea Homes caution that forward-looking statements are subject to numerous assumptions, risks and uncertainties which change over time. 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.
We do not undertake any obligation to update forward-looking statements. Additionally, reconciliation
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