Landsea Homes (LSEA)2025-02-27 02:49Financial Performance - Fourth quarter total revenue reached a record $486.7 million, up 22% year-over-year, driven by a 41% increase in new home deliveries[5] - Full year total revenue was a record $1.6 billion, representing a 28% increase compared to 2023[12] - Home sales revenue for the year ended December 31, 2024, was $1.487 billion, up 26.9% from $1.170 billion in 2023[42] - Total home sales revenue for the year ended December 31, 2024, was $1,486,938 thousand, a 27% increase from $1,169,867 thousand in 2023[50] Home Deliveries and Orders - New home deliveries for the fourth quarter increased 41% to 937 homes, with an average sales price of $481,000[6] - Net new home orders in the fourth quarter increased 60% to 636 homes, with a dollar value of $289.8 million and an average sales price of $456,000[7] - Home deliveries totaled 937 units in Q4 2024, a 41% increase from 664 units in Q4 2023[42] Profitability and Margins - Full year net income decreased 41.1% to $17.2 million, with net income per share at $0.47, a 37.3% decrease from 2023[17] - Home sales gross margin for the fourth quarter was 12.5%, down from 15.9% in the prior year, primarily due to elevated mortgage rates[9] - Home sales gross margin for the year ended December 31, 2024, was 14.7%, compared to 17.3% in 2023, reflecting a decrease of 1.6 percentage points[50] - The adjusted home sales gross margin excluding interest, inventory impairments, and purchase price accounting for acquired inventory was $302,078 thousand, or 20.3%, in 2024, compared to $261,929 thousand, or 22.4%, in 2023[50] Debt and Capital Structure - The ratio of debt to capital was 51.8% at year-end 2024, compared to 44.1% at the end of 2023[20] - The ratio of net debt to total capital rose to 47.7% in 2024 compared to 30.4% in 2023, reflecting increased indebtedness[61] - Total notes and other debts payable, net, increased to $725,354,000 in 2024 from $543,774,000 in 2023[61] Assets and Liabilities - Total assets increased to $1.701 billion as of December 31, 2024, up from $1.471 billion in 2023, representing a growth of 15.6%[39] - Total liabilities rose to $1.025 billion in 2024, compared to $782.9 million in 2023, marking a 31.0% increase[39] Future Outlook - The company anticipates new home deliveries in 2025 to be between 3,000 and 3,400 homes, with average sales prices expected to range from $500,000 to $525,000[22] - The company plans to continue its stock repurchase program, with discretion on timing and amount based on market conditions[36] Earnings Per Share - The company reported a basic earnings per share of $0.08 for Q4 2024, down from $0.33 in Q4 2023[41] - Adjusted basic earnings per share for the year 2024 was $1.15, down 8.0% from $1.25 in 2023[57] Inventory and Backlog - Total lots owned or controlled at year-end 2024 were 10,944, representing a 4.2-year supply based on the last twelve months' net orders[8] - The total backlog as of December 31, 2024, was 390 homes valued at $212,396 thousand, a decrease of 25% in value from $335,627 thousand in 2023[47] - The number of lots owned or controlled decreased by 2% to 10,944 lots as of December 31, 2024, from 11,176 lots in 2023[48] Regional Performance - The average selling price (ASP) of homes sold in Q4 2024 was $481, down 16% from $572 in Q4 2023[42] - The average selling communities increased by 31% to 78.7 in the three months ended December 31, 2024, compared to 60.0 in 2023[45] - The average selling price (ASP) for homes in Arizona increased by 36% to $446 thousand in 2024, while California saw a decrease of 35% to $837 thousand[44] - The number of homes sold in Florida increased by 24% to 923 homes in 2024, with a total sales value of $429,902 thousand[44]