Q3 2024 Landsea Homes Corp Earnings Call Transcript
Key Points
- Landsea Homes Corp (LSEA) reported a 29% increase in net income to $11.1 million, with a 36% increase in earnings per share.
- Home sales revenue rose 26% year over year, driven by a 40% increase in deliveries.
- The company achieved a home sales gross margin of 17.1%, exceeding their guidance.
- SG&A as a percentage of revenue improved to 13.9%, representing a 250 basis point reduction over the previous year.
- Landsea Homes Corp (LSEA) has successfully integrated acquisitions, allowing for rapid market presence and scale benefits, particularly in Florida, Texas, Colorado, Arizona, and California.
- The company experienced buyer hesitation due to mortgage rate volatility and economic and political uncertainty.
- Competition among homebuilders remains fierce, particularly in Central Florida and Texas, impacting market dynamics.
- Incentives and discounts remain elevated, with competitors offering aggressive fixed-rate incentives, affecting margins.
- The shift towards build-to-order homes may reduce backlog turnover rates, impacting short-term delivery goals.
- The company anticipates continued pressure on gross margins due to competitive market conditions and higher incentive costs.
Good day, everyone, and welcome to the Landsea Homes Corporation third quarter 2024 earnings call. (Operator Instructions) Please note, this call may be recorded. (Operator Instructions)
It is now my pleasure to turn the program over to Drew Mackintosh.
Good morning, and welcome to Landsea Homes third quarter 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 cautions 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, reconciliations of non-GAAP financial measures discussed on this call to the most comparable GAAP measures can be
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