Landsea Homes — Q2 2024 Earnings Presentation
20 slides from Landsea Homes's earnings presentation, Aug 1, 2024
Slide 1: 2Q 2024 Earnings Presentation
2Q 2024 Earnings Presentation
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements Certain statements in this presentation 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 b
Slide 3: Today's Presenters
Today’s Presenters John Ho Michael Forsum Chris Porter Chief Executive Officer President and Chief Financial Officer Chief Operating Officer 3
Slide 4: Business Review
BUSINESS REVIEW 4 19
Slide 5: Financial Highlights
Financial Highlights 2Q 24 Highlights • Total Revenue of $431.1M up 47% from Q2 2023 driven by 41% increase in deliveries to 760 and a 2% increase in Average Sales Price to $550,000 • Net New Home orders of 760 for a total value of $389.8M, a 35% increase in volume and 20% increase in dollar value f
Slide 6: Business Priorities
Business Priorities 1 Continue sales momentum of 2024 and maximize backlog for the remaining 2024 2 Drive higher returns with improvements in cycle time and focus on additional cost reductions 3 Fully integrate new acquisitions into Landsea Homes culture and platform 4 Drive growth with new communit
Slide 7: Diversified Portfolio In Strong Core Markets
Diversified Portfolio In Strong Core Markets California Florida • Markets: • Markets: - San Francisco Bay Area - Orlando Metro Area - Inland Empire - Palm Bay - Orange County • Lots Owned or Controlled: ~3,200 • Lots Owned or Controlled: ~1,700 (47% Controlled) (66% Controlled) • 2Q24 ASP $456k • 2Q
Slide 8: Diversified Revenue Base
Diversified Revenue Base 2Q 2024 Highlights Total Revenue by Segment ($ in thousands) 1 Home Sale Deliveries 1 Total Revenue: $426.7M 31% 31% California Florida 26% 38% 25% Arizona Total 28% 760 Florida 49% $134,211 $131,052 Deliveries $108,171 10% Arizona California Texas 13% 26% 18% Colorado 3% 2%
Slide 9: Key Operating Metrics
Key Operating Metrics Operating Metrics by Quarter New Home Orders (Units) Home Deliveries (Units) Backlog (Units) 538 257 88 498 565 486 398 612 760 572 543 703 472 539 448 664 505 760 1571 1285 670 696 722 760 517 624 694 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4
Slide 10: Proven Acquisition Playbook
Proven Acquisition Playbook Disciplined Acquisition Strategy Demonstrated Three-Step Approach Roll-up strategy of undercapitalized players that have built their Utilize the same three-step, principled approach developed businesses up as far as they can with local capital and / or during our successf
Slide 11: Landsea Homes Key Differentiator
Landsea Homes Key Differentiator High Performance Homes Program Features of High-Performance Homes The High Performance Homes program provides homebuyers Home Automation with a four-tiered approach that includes home automation, sustainability, energy savings and healthy lifestyle Live the Connected
Slide 12: Financial Highlights
Financial Highlights
Slide 13: Income Statement
Income Statement ($ in millions except ASP) 2Q 2024 Highlights 2Q24 2Q23 % Change Home Sales Revenues $418 $292 43% • Total Revenues were $431.1M • Home sales gross profit margin was 14.9%, compared to prior year of Deliveries 760 539 41% 17.4%. Excluding interest, inventory impairments and purchase
Slide 14: Consolidated Balance Sheet
Consolidated Balance Sheet ($000s) June 30, 2024 December 31, 2023 2Q 2024 Highlights Assets Cash and cash equivalents 106,221 168,646 • Debt to Capital of 53% Real estate inventories 1,350,165 1,121,726 Goodwill 152,322 68,639 • Net Debt to Total Capital 45% Other assets 134,202 112,221 Total asset
Slide 15: Appendix
APPENDIX
Slide 16: Reconciliations Of Adjusted Metrics
Reconciliations Of Adjusted Metrics (Non-GAAP) In this presentation, we include certain non-GAAP financial measures, including net debt to total capital, adjusted home sales gross margin, adjusted net income, EBITDA and adjusted EBITDA. These non-GAAP financial measures are presented to provide inve
Slide 17: Reconciliations Of Adjusted Metrics
Reconciliations Of Adjusted Metrics CONT’D (Non-GAAP) ADJUSTED HOME SALES GROSS MARGIN Three Months Ended June 30, 2024 % 2023 % (dollars in thousands) Home sales revenue $ 418,182 100.0 % $ 291,512 100.0 % Cost of home sales 355,736 85.1 % 240,835 82.6 % Home sales gross margin 62,446 14.9 % 50,677
Slide 18: Reconciliations Of Adjusted Metrics
Reconciliations Of Adjusted Metrics CONT’D (Non-GAAP) ADJUSTED NET INCOME Three Months Ended June 30, 2024 2023 (dollars in thousands) Net income attributable to Landsea Homes Corporation $ 2,885 $ 4,947 Real estate inventories impairment — 4,700 Pre-Merger capitalized related party interest include
Slide 19: Reconciliations Of Adjusted Metrics
Reconciliations Of Adjusted Metrics CONT’D (Non-GAAP) EBITDA AND ADJUSTED EBITDA Three Months Ended June 30, 2024 2023 (dollars in thousands) Net income $ 3,235 $ 5,866 Provision for income taxes 1,370 1,640 Interest in cost of sales 18,011 7,319 Depreciation and amortization expense 1,850 1,139 EBI
Slide 20: Landsea Homes
LANISEX HOMES Live in your element®