Landsea Homes (US:LSEA)2025-05-13 15:00Financial Data and Key Metrics Changes - Landsea Homes recorded a net loss of $7.3 million in Q1 2025, translating to a net loss of $0.20 per diluted share [4] - Home sales revenue increased by 2% year over year, driven by a 27% increase in deliveries, although this was partially offset by a 20% decline in average closing prices [4][16] - The company reported an adjusted net loss of $1.73 million or $0.05 per share [19] Business Line Data and Key Metrics Changes - Net new orders increased by 11% year over year, with a sales pace of 3.0 homes per community per month [5] - The company delivered 643 homes in Q1 2025, which was near the midpoint of the guidance of 600 to 700 closings [12] - Florida led delivery contributions with a 52% growth in deliveries and a 53% increase in revenue [16] Market Data and Key Metrics Changes - ASPs (Average Selling Prices) were up year over year in Florida and Texas, while they declined slightly in Arizona [13] - The sales pace in Arizona was the highest at 3.8, followed by Colorado at 3.7 and Florida at 2.9 [13] - Discounts and incentives represented 9.6% of gross home sales revenue, impacting gross margins [18] Company Strategy and Development Direction - The company aims to balance spec sales and built-to-order homes, targeting a 50-50 split over time [6] - A strategic shift towards presold homes is expected to enhance margin opportunities and reduce cash tied up in inventory [7] - The focus on product differentiation and desirable locations is seen as a competitive advantage in the current market [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term industry outlook due to the need for additional housing supply [11] - The current new home demand conditions were characterized as uneven, with consistent traffic levels offset by buyer hesitancy [13] - The company anticipates elevated incentive levels through 2025, fluctuating with the mortgage rate environment [20] Other Important Information - The company ended the quarter with $256 million in liquidity, including $52.3 million in cash and cash equivalents [20] - The debt to total capital ratio was reported at 52.1%, a 30 basis point increase from year-end [21] Q&A Session Summary - The call did not open for questions due to a transaction announcement [23]