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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 4, 2024
LANDSEA HOMES CORPORATION
(Exact name of registrant as specified in its charter)
Delaware001-3854582-2196021
(State or other jurisdiction of(Commission(I.R.S. Employer
incorporation)File Number)Identification Number)
1717 McKinney Avenue, Suite 1000
Dallas, TX
75202
(Address of Principal Executive Offices)(Zip Code)

Registrant’s telephone number, including area code: (949) 345-8080
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s) Name of each exchange on which registered
Common Stock, par value $0.0001 per shareLSEA 
The Nasdaq Capital Market
Warrants exercisable for Common StockLSEAW 
The Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.

On November 4, 2024, Landsea Homes Corporation (the “Company”) issued a press release announcing its financial results and operational highlights for the Company as of and for the period ended September 30, 2024. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K (this “Report”) and incorporated herein by reference.

The information under Item 2.02 of this Report, including Exhibit 99.1, attached hereto, is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Exchange Act or Securities Act of 1933, as amended, expect as expressly set forth by specific reference in such a filing.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.    Description

104        Cover Page Interactive Data File (embedded within the Inline XBRL document).



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Landsea Homes Corporation
Date: November 4, 2024By:/s/ Chris Porter
Chris Porter
Chief Financial Officer


Exhibit 99.1
image.jpg


Landsea Homes Reports Third Quarter 2024 Results

•Net income increased 29% to $11.1 million or $0.30 per share, a 36% increase
•Adjusted net income increased 36% to $15.9 million or $0.44 per share, a 47% increase
•Home sales revenue increased 26.2% to $325.6 million
•New home deliveries increased 40% to 629 homes
•Net new home orders of 626 increased 28.8%
•Home sales gross margin of 17.1%, adjusted home sales gross margin of 22.8%
•Book value per share of $18.27

Dallas, Texas – November 4, 2024 – Landsea Homes Corporation (Nasdaq: LSEA) (“Landsea Homes” or the “Company”) announced today financial results for the third quarter ended September 30, 2024. For the quarter, the Company reported pretax income of $14.9 million, and net income of $11.1 million, or $0.30 per share. Adjusted net income (a non-GAAP measure) was $15.9 million or $0.44 per share and adjusted gross margin was 22.8%. Reported pretax income for the prior year period was $12.5 million with net income of $8.6 million, or $0.22 per share. For the prior year period, adjusted net income was $11.7 million, or $0.30 per share and adjusted gross margin was 24.0%.

Management Commentary

“Landsea Homes delivered strong top and bottom-line growth in the third quarter of 2024, as new home deliveries increased 40% year-over-year,” said John Ho, Chief Executive Officer of Landsea Homes. “Home sales gross margin came in above our stated guidance range at 17.1%, and SG&A as a percent of home sales revenue improved 250 basis points as compared to the third quarter of 2023. The net result was earnings of $0.30 per diluted share, representing a 36% improvement over the prior year period.”

Mr. Ho continued, “We saw solid demand in our markets during the quarter, as our High Performance Homes and attractive financing incentives to aid with affordability continued to appeal to homebuyers. Housing fundamentals continue to favor the public builders, driven by a lack of existing home inventory, steady demand and a resilient economy. We believe these factors serve as an excellent backdrop for our company, as we look to grow our existing operations.”

Mr. Ho concluded, “We are starting to see the benefits of our increased size through better terms and pricing from our trade partners and suppliers. We believe this dynamic will continue to benefit our company at the local and national level as we become a bigger player within the industry. With an established presence in several high-growth markets, a differentiated product offering and a solid and improving balance sheet, Landsea Homes is well positioned to finish 2024 on a strong note and carry momentum into the new year.”



Operating Results

Total revenue was $338.5 million in the third quarter, up 22% compared to the third quarter of 2023, primarily driven by a 40% increase in homes closed partially offset by a 10% decrease in average selling price as both Texas and Colorado contributed to our volume.

New homes delivered increased 40.4% to 629 homes at an average sales price of $518,000, a 10% decrease, compared to 448 homes delivered at an average sales price of $576,000 in the third quarter of 2023.

Net new home orders were up 28.8% to 626 homes with a dollar value of $307.6 million, an average sales price of $491,000 and a monthly absorption rate of 2.5 sales per active community. This compares to 486 homes with a dollar value of $285.0 million, an average sales price of $587,000 and a monthly absorption rate of 2.7 sales per active community in the prior year period. As a percentage of gross orders, cancellations equaled 11% as compared to 9% a year ago.

Total homes in backlog were 691 homes with a dollar value of $373.1 million and an average sales price of $540,000 at September 30, 2024. This compares to 760 homes with a dollar value of $482.7 million and an average sales price of $635,000 at September 30, 2023.

Total lots owned or controlled at September 30, 2024, were 11,868 compared to 11,203 at September 30, 2023. We continue to pursue an asset-light strategy, controlling 56% of our lots at the end of the third quarter of 2024 and 44% owned.

Home sales gross margin was 17.1% compared to 18.7% in the prior year period. Adjusted home sales gross margin (a non-GAAP measure) was 22.8% compared to 24.0% in the prior year period. The decrease was primarily attributed to an elevated level of sales discounts and incentives as well as higher interest costs.

Net income attributable to Landsea Homes increased 29% to $11.1 million compared to $8.6 million in the prior year period. Adjusted net income attributable to Landsea Homes (a non-GAAP measure) was $15.9 million compared to $11.7 million in the prior year period. Net income per share on a fully diluted basis was $0.30, a 36% increase compared to $0.22 in the third quarter of 2023. Adjusted net income per share (a non-GAAP measure) on a fully diluted basis was $0.44 compared to $0.30 in the third quarter of 2023.

Adjusted EBITDA (a non-GAAP measure) was $37.7 million compared to $28.7 million in the prior year period.

Balance Sheet

As of September 30, 2024, the Company had total liquidity of $263.0 million consisting of cash and cash equivalents as well as cash held in escrow of $36.3 million and $226.7 million in availability under the Company’s $455.0 million unsecured revolving credit facility. Total debt was $732.1 million compared to $543.8 million at December 31, 2023.

Landsea Homes’ ratio of debt to capital was 51.8% at September 30, 2024, and the Company’s net debt to total capital (a non-GAAP measure) was 49.2% at September 30, 2024.



Full Year 2024 Outlook

•New home deliveries anticipated to be in the range of 2,890 to 3,000
•Delivery ASPs expected to be in the range of $520,000 to $535,000
•Adjusted home sales gross margin of approximately 21%
•Home sales gross margin of approximately 15%

Conference Call

The Company will hold a conference call today at 9:00 a.m. Central Time (10:00 a.m. Eastern time) to discuss its third quarter 2024 results and conduct a question-and-answer session.

•Toll-free dial-in number: 1-800-274-8461
•International dial-in number: 1-203-518-9814

The conference call will be broadcast live and available for replay in the Investors section of the Landsea Homes website at https://ir.landseahomes.com/.

A replay of the conference call will be available approximately three hours after conference end time through November 18, 2024.

Replay Details:

•Toll-free replay number: 1-844-512-2921
•International replay number: 1-412-317-6671
•Replay ID: 11157369

About Landsea Homes Corporation

Landsea Homes Corporation (Nasdaq: LSEA) is a publicly traded residential homebuilder based in Dallas, Texas that designs and builds best-in-class homes and sustainable master-planned communities in some of the nation's most desirable markets. The company has developed homes and communities in New York, Boston, New Jersey, Arizona, Colorado, Florida, Texas and throughout California in Silicon Valley, Los Angeles, and Orange County. Landsea Homes was honored as the Green Home Builder 2023 Builder of the Year, after being named the 2022 winner of the prestigious Builder of the Year award, presented by BUILDER magazine, in recognition of a historical year of transformation.

An award-winning homebuilder that builds suburban, single-family detached and attached homes, mid-and high-rise properties, and master-planned communities, Landsea Homes is known for creating inspired places that reflect modern living and provides homebuyers the opportunity to “Live in Your Element.” Our homes allow people to live where they want to live, how they want to live – in a home created especially for them.

Driven by a pioneering commitment to sustainability, Landsea Homes’ High Performance Homes are responsibly designed to take advantage of the latest innovations with home automation technology supported by Apple®. Homes include features that make life easier and provide energy savings that allow for more


comfortable living at a lower cost through sustainability features that contribute to healthier living for both homeowners and the planet.

Led by a veteran team of industry professionals who boast years of worldwide experience and deep local expertise, Landsea Homes is committed to positively enhancing the lives of our homebuyers, employees, and stakeholders by creating an unparalleled lifestyle experience that is unmatched.

For more information on Landsea Homes, visit: www.landseahomes.com.

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws, including, but not limited to, our expectations for future financial performance, business strategies or expectations for our business. These statements constitute projections, forecasts, and forward-looking statements, and are not guarantees of performance. Landsea Homes cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Words such as “may,” “can,” “should,” “will,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “target,” “look” or similar expressions may identify forward-looking statements. Specifically, forward-looking statements may include statements relating to the future financial performance of Landsea Homes; changes in the market for Landsea Homes’ products and services; and other expansion plans and opportunities.

These forward-looking statements are based on information available as of the date of this press release and our management’s current expectations, forecasts, and assumptions, and involve a number of judgments, risks and uncertainties that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.

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 (“SEC”). These risk factors and those identified elsewhere in this press release, among others, could cause actual results to differ materially from historical performance and include, but are not limited to:
•the cyclical nature of our industry and the possibility that adverse changes in general and local economic conditions could reduce the demand for homes;
•our ability to develop communities successfully and in a timely manner;
•changes in the terms and availability of mortgage financing, interest rates, federal lending programs, and tax laws, affecting the demand for and the ability of our homebuyers to complete the purchase of a home;
•our geographic concentration, which could materially and adversely affect us if the homebuilding industry in our current markets should experience a decline;
•the potential for adverse weather and geological conditions to increase costs, cause project delays or reduce consumer demand for housing;
•our ability to promptly sell one or more properties for reasonable prices in response to changing economic, financial and investment conditions, and the risk that we may be forced to hold non-income producing properties for extended periods of time;
•our reliance on third-party skilled labor, suppliers and long supply chains;


•the dependence of our long-term sustainability and growth upon our ability to acquire lots that are either developed or have the approvals necessary for us to develop them; and
•the other risks and uncertainties indicated in Landsea Homes’ SEC reports or documents filed or to be filed with the SEC by Landsea Homes.

Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward-looking statements in deciding whether to invest in our securities. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Stock Repurchase

Under its stock repurchase program, Landsea Homes may purchase its common stock in open market transactions effected through a broker-dealer at prevailing market prices, in block trades, or by other means in accordance with federal securities laws, including pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The Company is not obligated to repurchase any specific number or amount of shares of common stock, and it may modify, suspend or discontinue the program at any time. The Company will determine the timing and amount of repurchase in its discretion based on a variety of factors, such as the market price of the Company’s common stock, corporate requirements, general market economic conditions and legal requirements.

###

Investor Relations Contact:
Drew Mackintosh, CFA
Mackintosh Investor Relations, LLC
drew@mackintoshir.com
(310) 924-9036

Media Contact:
Annie Noebel
Cornerstone Communications
anoebel@cornerstonecomms.com
(949) 449-2527



Landsea Homes Corporation
Consolidated Balance Sheets - Unaudited

September 30, 2024December 31, 2023
(dollars in thousands)
Assets
Cash and cash equivalents$32,198 $119,555 
Cash held in escrow4,054 49,091 
Real estate inventories1,408,277 1,121,726 
Due from affiliates5,429 4,348 
Goodwill155,597 68,639 
Other assets121,056 107,873 
Total assets$1,726,611 $1,471,232 
 
Liabilities
Accounts payable$95,923 $77,969 
Accrued expenses and other liabilities216,647 160,256 
Due to affiliates881 881 
Line of credit facility, net 202,477 307,631 
Senior notes, net529,661 236,143 
Total liabilities1,045,589 782,880 
 
Commitments and contingencies
 
Equity
Stockholders’ equity:
Preferred stock, $0.0001 par value, 50,000,000 shares authorized, none issued and outstanding as of September 30, 2024 and December 31, 2023, respectively
— — 
Common stock, $0.0001 par value, 500,000,000 shares authorized, 41,678,878 issued and 36,282,883 outstanding as of September 30, 2024, 41,382,453 issued and 36,520,894 outstanding as of December 31, 2023
4 4 
Additional paid-in capital461,059 465,290 
Retained earnings201,769 187,584 
Total stockholders’ equity662,832 652,878 
Noncontrolling interests18,190 35,474 
Total equity681,022 688,352 
Total liabilities and equity$1,726,611 $1,471,232 


Landsea Homes Corporation
Consolidated Statements of Operations - Unaudited
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(dollars in thousands, except per share amounts)
Revenue
Home sales$325,610 $258,062 $1,036,384 $790,199 
Lot sales and other12,862 19,286 27,272 22,133 
Total revenues338,472 277,348 1,063,656 812,332 
 
Cost of sales
Home sales 270,091 209,753 874,724 647,642 
Lot sales and other 9,564 13,309 22,478 15,770 
Total cost of sales279,655 223,062 897,202 663,412 
 
Gross margin
Home sales55,519 48,309 161,660 142,557 
Lot sales and other3,298 5,977 4,794 6,363 
Total gross margin58,817 54,286 166,454 148,920 
 
Sales and marketing expenses23,445 16,930 66,596 51,672 
General and administrative expenses21,932 25,463 77,569 74,223 
Total operating expenses45,377 42,393 144,165 125,895 
 
Income from operations13,440 11,893 22,289 23,025 
 
Other income (expense), net 1,449 656 (2,091)2,770 
Pretax income14,889 12,549 20,198 25,795 
 
Provision for income taxes3,498 3,066 4,838 6,323 
 
Net income11,391 9,483 15,360 19,472 
Net income attributable to noncontrolling interests281 887 1,175 2,711 
Net income attributable to Landsea Homes Corporation$11,110 $8,596 $14,185 $16,761 
 
Income per share:
Basic$0.31 $0.22 $0.39 $0.43 
Diluted$0.30 $0.22 $0.39 $0.42 
 
Weighted average common shares outstanding:
Basic36,279,056 38,336,100 36,252,957 39,402,507 
Diluted36,497,337 38,440,392 36,548,768 39,549,035 


Home Deliveries and Home Sales Revenue
Three Months Ended September 30,
20242023% Change
HomesDollar ValueASPHomesDollar ValueASPHomesDollar ValueASP
(dollars in thousands)
Arizona192 $85,333 $444 115 $50,314 $438 67 %70 %1 %
California110 96,900 881 115 103,982 904 (4)%(7)%(3)%
Colorado40 18,881 472 — — N/AN/AN/AN/A
Florida162 72,768 449 218 103,766 476 (26)%(30)%(6)%
Metro New York— — N/A— — N/AN/AN/AN/A
Texas125 51,728 414 — — N/AN/AN/AN/A
Total629 $325,610 $518 448 $258,062 $576 40 %26 %(10)%
Nine Months Ended September 30,
20242023% Change
HomesDollar ValueASPHomesDollar ValueASPHomesDollar ValueASP
(dollars in thousands)
Arizona588 $260,325 $443 445 $193,438 $435 32 %35 %2 %
California395 363,005 919 315 270,756 860 25 %34 %7 %
Colorado81 37,936 468 — — N/AN/AN/AN/A
Florida604 275,133 456 694 320,162 461 (13)%(14)%(1)%
Metro New York1 4,475 4,475 1 1,649 1,649 — %171 %171 %
Texas225 95,510 424 4 4,194 1,049 5,525 %2,177 %(60)%
Total1,894 $1,036,384 $547 1,459 $790,199 $542 30 %31 %1 %
Net New Home Orders, Dollar Value of Orders, and Monthly Absorption Rates
Three Months Ended September 30,
20242023% Change
HomesDollar ValueASPMonthly Absorption RateHomesDollar ValueASPMonthly Absorption RateHomesDollar ValueASPMonthly Absorption Rate
(dollars in thousands)
Arizona192 $85,689 $446 3.4 136 $59,444 $437 2.7 41 %44 %2 %26 %
California70 54,020 772 2.3 140 128,352 917 4.1 (50)%(58)%(16 %)(44)%
Colorado24 11,462 478 2.7 — — N/AN/AN/AN/AN/AN/A
Florida209 103,584 496 2.3 210 97,245 463 2.3 — %7 %7 %— %
Metro New York— — N/AN/A— — N/AN/AN/AN/AN/AN/A
Texas131 52,834 403 2.1 — — N/AN/AN/AN/AN/AN/A
Total626 307,589 $491 2.5 486 285,041 $587 2.7 29 %8 %(16)%(7)%



Nine Months Ended September 30,
20242023% Change
HomesDollar ValueASPMonthly Absorption RateHomesDollar ValueASPMonthly Absorption RateHomesDollar ValueASPMonthly Absorption Rate
(dollars in thousands)
Arizona644$289,652$4503.5474 $201,452 $425 3.2 36 %44 %6 %9 %
California305264,5038673.5520 446,045 858 4.9 (41)%(41)%1 %(29)%
Colorado8137,2534603.3— — N/AN/AN/AN/AN/AN/A
Florida731346,1954742.7551 240,269 436 2.1 33 %44 %9 %29 %
Metro New York14,4754,475N/A— — N/AN/AN/AN/AN/AN/A
Texas23696,6754101.94 4,194 1,049 1.5 5,800 %2,205 %(61)%27 %
Total1,998$1,038,753$5202.91,549 $891,960 $576 3.0 29 %16 %(10)%(3)%
Average Selling Communities
Three Months Ended September 30,Nine Months Ended September 30,
20242023% Change20242023% Change
Arizona19.0 17.0 12 %20.3 16.7 22 %
California10.0 11.3 (12)%9.8 11.8 (17)%
Colorado3.0 — N/A2.7 — N/A
Florida30.3 31.0 (2)%29.8 29.5 1 %
Metro New York— — N/A— — N/A
Texas21.0 — N/A14.1 0.3 4,600 %
Total83.3 59.3 40 %76.7 58.3 32 %
Backlog
September 30, 2024September 30, 2023% Change
HomesDollar ValueASPHomesDollar ValueASPHomesDollar ValueASP
(dollars in thousands)
Arizona152 $70,760 $466 134 $58,000 $433 13 %22 %8 %
California71 59,668 840 284 253,735 893 (75)%(76)%(6)%
Colorado14 6,857 490 — — N/AN/AN/AN/A
Florida373 199,546 535 342 171,004 500 9 %17 %7 %
Metro New York— — N/A— — N/AN/AN/AN/A
Texas(1)
81 36,283 448 — — N/AN/AN/AN/A
Total691 $373,114 $540 760 $482,739 $635 (9)%(23)%(15)%
(1)     Backlog acquired in Texas at the date of the Antares acquisition was 70 homes with a value of $35,118 thousand.


Lots Owned or Controlled
September 30, 2024September 30, 2023
Lots OwnedLots ControlledTotalLots OwnedLots ControlledTotal% Change
Arizona1,476 1,412 2,888 1,833 1,534 3,367 (14)%
California654 950 1,604 718 1,415 2,133 (25)%
Colorado144 224 368 — — — N/A
Florida1,896 1,532 3,428 2,388 1,606 3,994 (14)%
Metro New York1 — 1 2 — 2 (50)%
Texas1,077 2,502 3,579 130 1,577 1,707 110 %
Total5,248 6,620 11,868 5,071 6,132 11,203 6 %
Home Sales Gross Margins
Home sales gross margin measures the price achieved on delivered homes compared to the costs needed to build the home. In the following table, we calculate gross margins adjusting for interest in cost of sales, inventory impairments, and purchase price accounting for acquired work in process inventory. This non-GAAP financial measure should not be used as a substitute for the Company's operating results in accordance with GAAP. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. We believe the below information is meaningful as it isolates the impact that indebtedness, impairments, and acquisitions have on our gross margins and allows for comparability to previous periods and competitors.

Three Months Ended September 30,
2024%2023%
(dollars in thousands)
Home sales revenue$325,610 100.0 %$258,062 100.0 %
Cost of home sales270,091 82.9 %209,753 81.3 %
Home sales gross margin55,519 17.1 %48,309 18.7 %
Add: Interest in cost of home sales12,285 3.8 %9,713 3.8 %
Add: Real estate inventories impairment800 0.2 %— — %
Adjusted home sales gross margin excluding interest and real estate inventories impairment68,604 21.1 %58,022 22.5 %
Add: Purchase price accounting for acquired inventory5,604 1.7 %3,865 1.5 %
Adjusted home sales gross margin excluding interest, real estate inventories impairment, and purchase price accounting for acquired inventory$74,208 22.8 %$61,887 24.0 %


Nine Months Ended September 30,
2024%2023%
(dollars in thousands)
Home sales revenue$1,036,384 100.0 %$790,199 100.0 %
Cost of home sales874,724 84.4 %647,642 82.0 %
Home sales gross margin161,660 15.6 %142,557 18.0 %
Add: Interest in cost of home sales39,916 3.9 %21,531 2.7 %
Add: Real estate inventories impairment800 0.1 %4,700 0.6 %
Adjusted home sales gross margin excluding interest and real estate inventories impairment202,376 19.5 %168,788 21.4 %
Add: Purchase price accounting for acquired inventory16,679 1.6 %14,060 1.8 %
Adjusted home sales gross margin excluding interest, real estate inventories impairment, and purchase price accounting for acquired inventory$219,055 21.1 %$182,848 23.1 %
EBITDA and Adjusted EBITDA
The following table presents EBITDA and Adjusted EBITDA for the three months ended September 30, 2024 and 2023. Adjusted EBITDA is a non-GAAP financial measure used by management in evaluating operating performance. We define Adjusted EBITDA as net income before (i) income tax expense (benefit), (ii) interest expenses, (iii) depreciation and amortization, (iv) inventory impairments, (v) purchase accounting adjustments for acquired work in process inventory related to business combinations, (vi) loss on debt modification, (vii) transaction costs related to the Merger and business combinations, (viii) write-off of deferred offering costs, and (ix) abandoned projects costs. We believe Adjusted EBITDA provides an indicator of general economic performance that is not affected by fluctuations in interest, effective tax rates, levels of depreciation and amortization, and items considered to be non-recurring. Accordingly, we believe this measure is useful for comparing our core operating performance from period to period. Our presentation of Adjusted EBITDA should not be considered as an indication that our future results will be unaffected by unusual or non-recurring items.
Three Months Ended September 30,
20242023
(dollars in thousands)
Net income$11,391 $9,483 
Provision for income taxes3,498 3,066 
Interest in cost of sales13,643 10,006 
Depreciation and amortization expense2,129 1,221 
EBITDA30,661 23,776 
Real estate inventories impairment
800 — 
Purchase price accounting in cost of home sales5,604 3,865 
Transaction costs664 600 
Abandoned project costs(52)433 
Adjusted EBITDA$37,677 $28,674 


Nine Months Ended September 30,
20242023
(dollars in thousands)
Net income$15,360 $19,472 
Provision for income taxes4,838 6,323 
Interest in cost of sales42,224 21,878 
Depreciation and amortization expense5,299 3,778 
EBITDA67,721 51,451 
Real estate inventories impairment
800 4,700 
Purchase price accounting in cost of home sales16,679 14,060 
Transaction costs5,253 633 
Write-off of offering costs— 436 
Abandoned project costs1,902 745 
Loss on debt modification5,180 — 
Adjusted EBITDA$97,535 $72,025 
Adjusted Net Income
Adjusted Net Income attributable to Landsea Homes is a non-GAAP financial measure that we believe is useful to management, investors and other users of our financial information in evaluating and understanding our operating results without the effect of certain expenses that were historically pushed down by our parent company and other non-recurring items. We believe excluding these items provides a more comparable assessment of our financial results from period to period. Adjusted Net Income attributable to Landsea Homes is calculated by excluding the effects of related party interest that was pushed down by our parent company, purchase accounting adjustments for acquired work in process inventory related to business combinations, loss on debt modification, and inventory impairment, and tax-effected using a blended statutory tax rate. We also adjust for the expense of related party interest pushed down from our parent company as we have no obligation to repay the debt and related interest.


Three Months Ended September 30,
20242023
(dollars in thousands, except share and per share amounts)
Net income attributable to Landsea Homes Corporation$11,110 $8,596 
Real estate inventories impairment800 — 
Pre-Merger capitalized related party interest included in cost of sales10 324 
Purchase price accounting for acquired inventory5,604 3,865 
Total adjustments6,414 4,189 
Tax-effected adjustments (1)
4,783 3,088 
Adjusted net income attributable to Landsea Homes Corporation$15,893 $11,684 
Earnings per share
Basic$0.31 $0.22 
Diluted$0.30 $0.22 
Adjusted earnings per share
Basic$0.44 $0.30 
Diluted$0.44 $0.30 
Weighted average common shares outstanding used in EPS - basic36,279,056 38,336,100 
Weighted average common shares outstanding used in EPS - diluted36,497,337 38,440,392 
(1)    Our tax-effected adjustments are based on our federal rate and a blended state rate adjusted for certain discrete items.


Nine Months Ended September 30,
20242023
(dollars in thousands, except share and per share amounts)
Net income attributable to Landsea Homes Corporation$14,185 $16,761 
Real estate inventories impairment800 4,700 
Pre-Merger capitalized related party interest included in cost of sales129 1,587 
Purchase price accounting for acquired inventory16,679 14,060 
Loss on debt modification5,180 — 
Total adjustments22,788 20,347 
Tax-effected adjustments (1)
16,994 14,997 
Adjusted net income attributable to Landsea Homes Corporation$31,179 $31,758 
Earnings per share
Basic$0.39 $0.43 
Diluted$0.39 $0.42 
Adjusted earnings per share
Basic$0.86 $0.81 
Diluted$0.85 $0.80 
Weighted shares outstanding
Weighted average common shares outstanding used in EPS - basic36,252,957 39,402,507 
Weighted average common shares outstanding used in EPS - diluted36,548,768 39,549,035 
(1)    Our tax-effected adjustments are based on our federal rate and a blended state rate adjusted for certain discrete items.
Net Debt to Total Capital
The following table presents the ratio of debt to capital as well as the ratio of net debt to total capital which is a non-GAAP financial measure. The ratio of debt to capital is computed as the quotient obtained by dividing total debt, net of issuance costs, by total capital (sum of total debt, net of issuance costs, plus total equity).
The non-GAAP ratio of net debt to total capital is computed as the quotient obtained by dividing net debt (which is total debt, net of issuance costs, less cash and cash equivalents as well as cash held in escrow to the extent necessary to reduce the debt balance to zero) by total capital. The most comparable GAAP financial measure is the ratio of debt to capital. We believe the ratio of net debt to total capital is a relevant financial measure for investors to understand the leverage employed in our operations and as an indicator of our ability to obtain financing. We believe that by deducting our cash from our debt, we provide a measure of our indebtedness that takes into account our cash liquidity. We believe this provides useful information as the ratio of debt to capital does not take into account our liquidity and we believe that the ratio of net debt to total capital provides supplemental information by which our financial position may be considered.


See table below reconciling this non-GAAP measure to the ratio of debt to capital.
September 30, 2024December 31, 2023
(dollars in thousands)
Total notes and other debts payable, net$732,138 $543,774 
Total equity681,022 688,352 
Total capital$1,413,160 $1,232,126 
Ratio of debt to capital51.8 %44.1 %
Total notes and other debts payable, net$732,138 $543,774 
Less: cash and cash equivalents32,198 119,555 
Less: cash held in escrow4,054 49,091 
Net debt695,886 375,128 
Total capital$1,413,160 $1,232,126 
Ratio of net debt to total capital49.2 %30.4 %



v3.24.3
Cover Page
Nov. 04, 2024
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Nov. 04, 2024
Entity Registrant Name LANDSEA HOMES CORPORATION
Entity Incorporation, State or Country Code DE
Entity File Number 001-38545
Entity Tax Identification Number 82-2196021
Entity Address, Address Line One 1717 McKinney Avenue
Entity Address, Address Line Two Suite 1000
Entity Address, City or Town Dallas
Entity Address, State or Province TX
Entity Address, Postal Zip Code 75202
City Area Code 949
Local Phone Number 345-8080
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001721386
Common Class A | NASDAQ - ALL MARKETS  
Entity Information [Line Items]  
Title of 12(b) Security Common Stock, par value $0.0001 per share
Trading Symbol LSEA
Security Exchange Name NASDAQ
Warrant | NASDAQ - ALL MARKETS  
Entity Information [Line Items]  
Title of 12(b) Security Warrants exercisable for Common Stock
Trading Symbol LSEAW
Security Exchange Name NASDAQ
Landsea Homes (NASDAQ:LSEAW)
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