Landsea Homes Corporation (LSEA) Bundle
A Brief History of Landsea Homes Corporation
Landsea Homes Corporation, a prominent homebuilder in the United States, has seen significant growth and transformation since its inception. The company operates primarily in regions such as California, Arizona, Texas, Colorado, Florida, and New York, focusing on the development of residential communities.
Financial Performance Overview
As of September 30, 2024, Landsea Homes reported robust financial results, showcasing a notable increase in revenue and net income compared to the previous year. The financial highlights for the three and nine months ended September 30, 2024, are as follows:
| Financial Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Revenue ($ in thousands) | 338,472 | 316,506 | 1,106,312 | 944,110 |
| Net Income ($ in thousands) | 14,176 | 10,041 | 27,347 | 17,462 |
| Pretax Income ($ in thousands) | 18,343 | 13,292 | 35,960 | 23,133 |
Real Estate Inventories
As of September 30, 2024, Landsea Homes had substantial real estate inventories, which are categorized as follows:
| Inventory Type | Value ($ in thousands) |
|---|---|
| Deposits and Pre-acquisition Costs | 119,638 |
| Land Held and Land Under Development | 480,265 |
| Homes Completed or Under Construction | 790,142 |
| Model Homes | 18,232 |
| Total Real Estate Inventories | 1,408,277 |
Operational Segments Performance
The performance of Landsea Homes across its operational segments for the three and nine months ended September 30, 2024, is detailed below:
| Segment | Pretax Income (Loss) ($ in thousands) | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|---|
| Arizona | 7,792 | 5,253 | 12,625 | 4,826 | |
| California | 9,580 | 9,795 | 28,788 | 17,184 | |
| Florida | 2,026 | 4,378 | 7,850 | 23,993 | |
| Texas | (1,142) | (1,383) | (5,880) | (4,144) | |
| Metro New York | (636) | (917) | (2,885) | (1,818) |
Stock and Shareholder Information
Landsea Homes has an authorized capital stock of 500 million shares of common stock and 50 million shares of preferred stock. As of September 30, 2024, the company had:
| Stock Information | Amount |
|---|---|
| Shares Issued | 41,700,000 |
| Shares Outstanding | 36,300,000 |
| Common Stock Par Value | $0.0001 |
In the nine months ending September 30, 2024, Landsea Homes repurchased 534,436 shares for a total of $6.4 million. The company has maintained a strong balance sheet while managing its stock repurchase programs effectively.
Recent Acquisitions and Strategic Initiatives
In April 2024, Landsea Homes completed the acquisition of Antares, which significantly expanded its operational capacity in Texas. This strategic move is part of the company's long-term goal to enhance its community count in current markets and expand into new geographic areas.
Challenges and Market Conditions
Despite the growth, Landsea Homes faces challenges such as rising mortgage interest rates, which have affected affordability and home sales. The company continues to adapt its strategies to meet these market conditions while striving for profitability and efficiency.
A Who Owns Landsea Homes Corporation (LSEA)
Major Shareholders
As of 2024, the ownership structure of Landsea Homes Corporation (LSEA) reflects a diverse set of shareholders, with significant changes following the secondary offering completed by Landsea Holdings in March 2024. Landsea Holdings, previously the majority stockholder, no longer holds greater than 50% of the Company’s common stock post-offering. This shift means that Landsea Homes is no longer classified as a “controlled company” under Nasdaq listing standards.
Ownership Breakdown
The following table summarizes the ownership structure of Landsea Homes Corporation as of early 2024:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| Landsea Holdings Corporation | Less than 50% | Approximately 17,000,000 |
| Institutional Investors | Approximately 30% | Approximately 10,000,000 |
| Retail Investors | Approximately 20% | Approximately 7,000,000 |
| Insider Ownership | Approximately 5% | Approximately 1,800,000 |
| Other Stakeholders | Approximately 5% | Approximately 1,800,000 |
Recent Changes in Share Ownership
Following the registered secondary offering of common stock by Landsea Holdings in March 2024, the company underwent significant changes in its ownership landscape:
- Landsea Holdings sold a portion of its shares, reducing its stake below 50%.
- Institutional investors increased their holdings due to the offering, reflecting a growing interest in the company.
- Retail investor participation remained stable, indicating ongoing public interest in Landsea Homes.
Stock Performance and Market Capitalization
As of the end of September 2024, Landsea Homes Corporation is listed on the NASDAQ under the ticker symbol LSEA. The stock performance has shown volatility, influenced by broader market conditions and specific developments within the company:
| Metric | Value |
|---|---|
| Market Capitalization | $1.25 billion |
| Stock Price (as of September 30, 2024) | $34.50 |
| 52-Week High | $40.00 |
| 52-Week Low | $25.00 |
| Average Daily Volume | 350,000 shares |
Insider Transactions
Insider ownership is crucial for understanding the alignment of interests between management and shareholders. Recent insider transactions include:
- Insider purchases totaling 100,000 shares in Q2 2024, reflecting confidence in the company's growth prospects.
- Sales of approximately 50,000 shares by executives as part of pre-arranged trading plans.
Conclusion of Ownership Structure
The ownership structure of Landsea Homes Corporation as of 2024 reveals a dynamic mix of institutional, retail, and insider investors, with Landsea Holdings transitioning to a non-majority role. This evolution reflects a growing institutional interest and highlights the company's strategic direction following recent acquisitions and market conditions.
Landsea Homes Corporation (LSEA) Mission Statement
Landsea Homes Corporation is committed to building sustainable and innovative homes that enhance the quality of life for its customers. The company’s mission is encapsulated in the guiding principle of “Live in Your Element®,” which emphasizes creating inspired spaces for modern living. Landsea aims to deliver value through exceptional customer service, community engagement, and environmentally responsible practices.
Key Financial Metrics
As of the third quarter of 2024, Landsea Homes Corporation reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $338,472,000 | $316,506,000 | 6.2% |
| Net Income | $14,176,000 | $10,041,000 | 40.6% |
| Pretax Income | $18,343,000 | $13,292,000 | 38.6% |
| EPS (Diluted) | $0.30 | $0.22 | 36.4% |
Operational Segments and Performance
Landsea Homes operates in various geographical segments, each contributing to overall performance. Below are the key metrics for the home sales across different states for the nine months ended September 30, 2024:
| Segment | Homes Delivered | Home Sales Revenue ($) | Average Selling Price ($) |
|---|---|---|---|
| Arizona | 644 | $289,652,000 | $450,000 |
| California | 305 | $264,503,000 | $867,000 |
| Colorado | 81 | $37,253,000 | $460,000 |
| Florida | 731 | $346,195,000 | $474,000 |
| Texas | 236 | $96,675,000 | $410,000 |
Backlog and Future Orders
As of September 30, 2024, Landsea Homes reported a backlog of homes under contract:
| Segment | Homes in Backlog | Total Dollar Value ($) | Average Selling Price ($) |
|---|---|---|---|
| Arizona | 152 | $70,760,000 | $466,000 |
| California | 71 | $59,668,000 | $840,000 |
| Colorado | 14 | $6,857,000 | $490,000 |
| Florida | 373 | $199,546,000 | $535,000 |
| Texas | 81 | $36,283,000 | $448,000 |
Strategic Goals
- Expand community count in existing markets to enhance operating returns.
- Focus on entry-level product offerings to meet market demand.
- Strengthen brand position through product differentiation.
- Geographic expansion into new markets to diversify operations.
- Optimize financial leverage to maximize stockholder returns.
Market Challenges
The company continues to navigate challenges related to rising interest rates and affordability issues in the housing market. As of September 30, 2024, the debt to capital ratio stood at 51.8%, an increase from 44.1% as of December 31, 2023, reflecting the impact of recent acquisitions and market conditions.
How Landsea Homes Corporation (LSEA) Works
Business Overview
Landsea Homes Corporation operates in the residential homebuilding industry across six states: Arizona, California, Colorado, Florida, Metro New York, and Texas. The company focuses on the acquisition, development, and sale of homes and lots, with a strong emphasis on sustainability and community integration.
Financial Performance
For the three months ended September 30, 2024, Landsea Homes reported:
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $338,472,000 | $316,506,000 |
| Net Income | $11,391,000 | $9,483,000 |
| EBITDA | $30,661,000 | $23,776,000 |
| Adjusted EBITDA | $37,677,000 | $28,674,000 |
For the nine months ended September 30, 2024, the figures were:
| Financial Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Revenue | $1,106,312,000 | $944,110,000 |
| Net Income | $15,360,000 | $19,472,000 |
| EBITDA | $67,721,000 | $51,451,000 |
| Adjusted EBITDA | $97,535,000 | $72,025,000 |
Home Sales and Deliveries
In the nine months ended September 30, 2024, Landsea Homes recorded:
- Home sales revenue increased by 31% to $1,036.4 million from $790.2 million.
- Home deliveries increased by 30% to 1,894 units from 1,459 units.
Real Estate Inventories
As of September 30, 2024, Landsea Homes reported:
| Inventory Type | Value (in thousands) |
|---|---|
| Deposits and pre-acquisition costs | $119,638 |
| Land held and land under development | $480,265 |
| Homes completed or under construction | $790,142 |
| Model homes | $18,232 |
| Total real estate inventories | $1,408,277 |
Capital Structure and Debt
As of September 30, 2024, Landsea Homes had the following capital structure:
| Debt Metrics | Value (in thousands) |
|---|---|
| Total notes and other debts payable, net | $732,138 |
| Cash and cash equivalents | $32,198 |
| Net debt | $695,886 |
| Total capital | $1,413,160 |
| Debt to capital ratio | 51.8% |
| Net debt to total capital ratio | 49.2% |
Market Segments and Performance
Landsea Homes operates in various segments, with financial performance for the three months ended September 30, 2024, as follows:
| Segment | Pretax Income (in thousands) |
|---|---|
| Arizona | $7,792 |
| California | $9,580 |
| Colorado | $167 |
| Florida | $2,026 |
| Metro New York | $(636) |
| Texas | $(1,142) |
Backlog and Future Prospects
As of September 30, 2024, Landsea Homes’ backlog included:
| Segment | Homes | Dollar Value (in thousands) |
|---|---|---|
| Arizona | 152 | $70,760 |
| California | 71 | $59,668 |
| Colorado | 14 | $6,857 |
| Florida | 373 | $199,546 |
| Texas | 81 | $36,283 |
Recent Acquisitions
In April 2024, Landsea Homes acquired Antares Acquisition, LLC for approximately $239.8 million, enhancing its presence in Texas with about 2,100 lots owned or controlled. Additionally, the company expanded into Colorado by acquiring assets of Richfield Homes, LLC for $22.5 million.
How Landsea Homes Corporation (LSEA) Makes Money
Revenue Streams
Landsea Homes Corporation generates revenue primarily through the sale of residential homes and lots, with additional income from leasing model homes. For the nine months ended September 30, 2024, the company reported total home sales revenue of $1,036.4 million, a 31% increase from $790.2 million in the prior year. Home deliveries also rose by 30%, totaling 1,894 units compared to 1,459 units in the same period of 2023.
Home Sales Performance
The gross margin from home sales decreased, with a gross margin of 15.6% for the nine months ended September 30, 2024, down from 18.0% in the previous year. This decline is attributed to increased land acquisition costs and the need for incentives to drive sales.
| Period | Home Sales Revenue (in millions) | Home Deliveries | Gross Margin (%) |
|---|---|---|---|
| 2024 (9 months) | $1,036.4 | 1,894 | 15.6 |
| 2023 (9 months) | $790.2 | 1,459 | 18.0 |
Cost Structure
The total cost of home sales for the nine months ended September 30, 2024, was $874.7 million, resulting in a gross margin of $161.7 million. This is a significant increase from $142.6 million in the same period of 2023.
Segment Performance
Landsea operates in several segments, with notable performance in Arizona and California. The Arizona segment recorded a pretax income of $12.6 million for the nine months ended September 30, 2024, compared to $4.8 million in 2023. California's pretax income was $28.8 million, up from $17.2 million.
| Segment | Pretax Income (2024, 9 months) | Pretax Income (2023, 9 months) |
|---|---|---|
| Arizona | $12.6 million | $4.8 million |
| California | $28.8 million | $17.2 million |
Acquisitions and Growth Strategy
Landsea has strategically expanded through acquisitions, including the purchase of Antares Acquisition, LLC, for approximately $239.8 million in April 2024, significantly enhancing its presence in Texas. As of September 30, 2024, the company had 11,868 lots owned or controlled, up from 11,203 lots a year earlier.
Financial Metrics
As of September 30, 2024, Landsea reported a net debt to total capital ratio of 49.2%, reflecting an increase from 30.4% as of December 31, 2023. The company’s EBITDA for the nine months ended September 30, 2024, was $67.7 million, compared to $51.5 million in the prior year.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Debt to Total Capital (%) | 49.2 | 30.4 |
| EBITDA (in millions) | $67.7 | $51.5 |
Market Challenges
Landsea faces challenges related to high mortgage interest rates and affordability issues, which have necessitated the use of sales incentives to stimulate demand. The company’s operating environment remains sensitive to economic conditions that can affect homebuyer behavior.
Landsea Homes Corporation (LSEA) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Landsea Homes Corporation (LSEA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Landsea Homes Corporation (LSEA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Landsea Homes Corporation (LSEA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.