Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 26, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-38545 | |
Entity Registrant Name | Landsea Homes Corporation | |
Entity Incorporation, State or Country Code | DE | |
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 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 36,179,233 | |
Entity CIK | 0001721386 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Common Class A | NASDAQ | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | LSEA | |
Security Exchange Name | NASDAQ | |
Warrant | NASDAQ | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Warrants exercisable for Common Stock | |
Trading Symbol | LSEAW | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets - (
Consolidated Balance Sheets - (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and cash equivalents | $ 121,492 | $ 119,555 |
Cash held in escrow | 18,460 | 49,091 |
Real estate inventories | 1,196,506 | 1,121,726 |
Goodwill | 68,639 | 68,639 |
Other assets | 133,818 | 107,873 |
Total assets | 1,543,377 | 1,471,232 |
Liabilities | ||
Accounts payable | 88,707 | 77,969 |
Accrued expenses and other liabilities | 192,115 | 160,256 |
Line of credit facility, net | 348,237 | 307,631 |
Senior notes, net | 236,913 | 236,143 |
Total liabilities | 866,853 | 782,880 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value, 50,000,000 shares authorized, none issued and outstanding as of March 31, 2024 and December 31, 2023, respectively | 0 | 0 |
Common stock, $0.0001 par value, 500,000,000 shares authorized, 41,525,731 issued and 36,129,736 outstanding as of March 31, 2024, 41,382,453 issued and 36,520,894 outstanding as of December 31, 2023 | 4 | 4 |
Additional paid-in capital | 459,521 | 465,290 |
Retained earnings | 187,774 | 187,584 |
Total stockholders’ equity | 647,299 | 652,878 |
Noncontrolling interests | 29,225 | 35,474 |
Total equity | 676,524 | 688,352 |
Total liabilities and equity | 1,543,377 | 1,471,232 |
Related Party | ||
Assets | ||
Due from affiliates | 4,462 | 4,348 |
Liabilities | ||
Due to affiliates | $ 881 | $ 881 |
Consolidated Balance Sheets -_2
Consolidated Balance Sheets - (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 41,525,731 | 41,382,453 |
Common stock, shares outstanding (in shares) | 36,129,736 | 36,520,894 |
Consolidated Statements of Oper
Consolidated Statements of Operations - (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue | $ 294,041 | $ 241,740 |
Cost of Revenue | 250,580 | 197,767 |
Gross margin | 43,461 | 43,973 |
Sales and marketing expenses | 18,488 | 16,408 |
General and administrative expenses | 26,082 | 22,780 |
Total operating expenses | 44,570 | 39,188 |
(Loss) income from operations | (1,109) | 4,785 |
Other income, net | 1,813 | 955 |
Pretax income | 704 | 5,740 |
(Benefit) provision for income taxes | (30) | 1,617 |
Net income | 734 | 4,123 |
Net income attributable to noncontrolling interests | 544 | 905 |
Net income attributable to Landsea Homes Corporation | $ 190 | $ 3,218 |
Income per share: | ||
Basic (in dollars per share) | $ 0.01 | $ 0.08 |
Diluted (in dollars per share) | $ 0.01 | $ 0.08 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 36,279,679 | 39,997,699 |
Diluted (in shares) | 36,798,722 | 40,116,873 |
Home sales | ||
Revenue | $ 292,592 | $ 240,625 |
Cost of Revenue | 248,897 | 197,054 |
Gross margin | 43,695 | 43,571 |
Lot sales and other | ||
Revenue | 1,449 | 1,115 |
Cost of Revenue | 1,683 | 713 |
Gross margin | $ (234) | $ 402 |
Consolidated Statements of Equi
Consolidated Statements of Equity - (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Retained earnings | Total stockholders' equity | Noncontrolling interests |
Beginning balance (in shares) at Dec. 31, 2022 | 40,884,268 | |||||
Beginning balance at Dec. 31, 2022 | $ 710,319 | $ 4 | $ 497,598 | $ 158,348 | $ 655,950 | $ 54,369 |
Increase (Decrease) in Shareholders' Equity | ||||||
Shares issued under share-based awards (in shares) | 135,015 | |||||
Cash paid for shares withheld for taxes | (550) | (550) | (550) | |||
Stock-based compensation | (361) | (361) | (361) | |||
Forfeiture and cancellation of Earnout Shares (in shares) | (1,000,000) | |||||
Distributions to noncontrolling interests | (913) | (913) | ||||
Net income | 4,123 | 3,218 | 3,218 | 905 | ||
Ending balance (in shares) at Mar. 31, 2023 | 40,019,283 | |||||
Ending balance at Mar. 31, 2023 | $ 712,618 | $ 4 | 496,687 | 161,566 | 658,257 | 54,361 |
Beginning balance (in shares) at Dec. 31, 2023 | 36,520,894 | 36,520,894 | ||||
Beginning balance at Dec. 31, 2023 | $ 688,352 | $ 4 | 465,290 | 187,584 | 652,878 | 35,474 |
Increase (Decrease) in Shareholders' Equity | ||||||
Shares issued under share-based awards (in shares) | 71,252 | |||||
Stock options exercised (in shares) | 72,026 | |||||
Stock options exercised | 736 | 736 | 736 | |||
Cash paid for shares withheld for taxes | (674) | (674) | (674) | |||
Stock-based compensation | 678 | 678 | 678 | |||
Repurchase of common stock and associated tax (in shares) | (534,436) | |||||
Repurchase of common stock and associated tax | (6,509) | (6,509) | (6,509) | |||
Distributions to noncontrolling interests | (6,793) | (6,793) | ||||
Net income | $ 734 | 190 | 190 | 544 | ||
Ending balance (in shares) at Mar. 31, 2024 | 36,129,736 | 36,129,736 | ||||
Ending balance at Mar. 31, 2024 | $ 676,524 | $ 4 | $ 459,521 | $ 187,774 | $ 647,299 | $ 29,225 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 734 | $ 4,123 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 1,320 | 1,418 |
Stock-based compensation | 678 | (361) |
Abandoned project costs | 256 | 115 |
Deferred taxes | (183) | 580 |
Changes in operating assets and liabilities: | ||
Cash held in escrow | 30,631 | 14,341 |
Real estate inventories | (50,929) | 13,184 |
Due from affiliates | (114) | (307) |
Other assets | (20,298) | (2,232) |
Accounts payable | 10,738 | (11,972) |
Accrued expenses and other liabilities | (6,068) | (13,412) |
Net cash (used in) provided by operating activities | (33,235) | 5,477 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,907) | (1,563) |
Net cash used in investing activities | (1,907) | (1,563) |
Cash flows from financing activities: | ||
Borrowings from notes, other debts payable, and other liabilities | 117,654 | 175,000 |
Repayments of notes, other debts payable, and other liabilities | (65,000) | (164,300) |
Cash paid for shares withheld for taxes | (675) | (550) |
Proceeds from exercise of stock options | 736 | 0 |
Repurchases of common stock | (6,452) | 0 |
Distributions to noncontrolling interests | (6,793) | (913) |
Deferred offering costs paid | (2,324) | 0 |
Debt issuance and extinguishment costs paid | (67) | 0 |
Net cash provided by financing activities | 37,079 | 9,237 |
Net increase in cash and cash equivalents | 1,937 | 13,151 |
Cash and cash equivalents at beginning of period | 119,555 | 123,634 |
Cash and cash equivalents at end of period | $ 121,492 | $ 136,785 |
Company and Summary of Signific
Company and Summary of Significant Account Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Company and Summary of Significant Account Policies | Company and Summary of Significant Account Policies Landsea Homes Corporation (together with its subsidiaries, “Landsea Homes” or the “Company”) is engaged in the acquisition, development, and sale of homes and lots in Arizona, California, Colorado, Florida, New York, and Texas. The Company’s operations are organized into the following six reportable segments: Arizona, California, Colorado, Florida, Metro New York, and Texas. Basis of Presentation and Consolidation —The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and all subsidiaries, partnerships, and other entities in which the Company has a controlling interest as well as variable interest entities (“VIEs”) in which the Company is deemed the primary beneficiary. The Company’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in VIEs in which the Company is not deemed to be the primary beneficiary are accounted for under the equity method. All intercompany transactions and balances have been eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 29, 2024. The accompanying unaudited consolidated financial statements include all adjustments, consisting of normal recurring entries, necessary for a fair presentation of the Company’s results for the interim periods presented. Results for the interim periods are not necessarily indicative of the results to be expected for the full year due to seasonal variations and other factors. Use of Estimates —The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ materially from these estimates. Recent Accounting Pronouncements In March 2023, the FASB issued ASU 2023-01, which amends the application of ASU 2016-02, Leases (Topic 842), related to leases with entities under common control, also referred to as common control leases. The amendments to this update require an entity to consider the useful life of leasehold improvements associated with common control leases from the perspective of the common control group and amortize the leasehold improvements over the useful life of the assets to the common control group, instead of the term of the lease. Any remaining value for the leasehold improvement at the end of the lease would be adjusted through equity. The standard was effective for fiscal years beginning after December 15, 2023, early adoption was permitted. The adoption did not have a material impact on the Company’s consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of additional segment information. The guidance requires entities to provide significant segment expenses that are regularly provided to the entity’s chief operating decision maker (“CODM”), other segment items to reconcile segment revenue and significant expenses to the reported measure of segment profit or loss, a description of the composition of the other segment items, and the title and position of the CODM. The amendments in this update also expand the segment disclosure requirements to interim periods. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The new guidance must be applied retrospectively to all prior periods presented in the financial statements, with the significant segment expense and other segment item amounts disclosed based on categories identified in the period of adoption. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires annual disclosure of specific categories in the income tax rate reconciliation and of additional information for reconciling items that meet a quantitative threshold among other changes. Specifically, the guidance requires a tabular reconciliation disclosure, using both percentages and amounts. The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures. |
Asset Acquisition
Asset Acquisition | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Asset Acquisition | Asset Acquisition On October 10, 2023, the Company expanded into the Colorado market by acquiring certain assets of Richfield Homes, LLC (“Richfield”). The Company paid an aggregate cash purchase price of $22.5 million to acquire approximately 290 owned or controlled lots in the greater Denver, Colorado area, including any construction in progress on those lots. This acquisition was accounted for as an asset acquisition. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company consolidates two joint venture (“JV”) VIEs. The consolidated VIEs include one active project in the Metro New York area (“14th Ave JV”) and one JV with the purpose of acquiring undeveloped land (the “LCF JV”). The Company has determined that it is the primary beneficiary of these VIEs as it has the power to direct activities of the operations that most significantly affect their economic performance. Both consolidated VIEs are financed by equity contributions from the Company and the JV partner. The 14th Ave JV was also funded by third-party debt which was paid off in 2022. The following table summarizes the carrying amount and classification of the VIEs’ assets and liabilities in the consolidated balance sheets as of March 31, 2024 and December 31, 2023. March 31, 2024 December 31, 2023 (dollars in thousands) Cash $ 6,238 $ 2,950 Real estate inventories 69,382 79,441 Due from affiliates 148 203 Other assets 2,093 2,107 Total assets $ 77,861 $ 84,701 Accounts payable $ 304 $ 384 Accrued expenses and other liabilities 5,203 5,257 Total liabilities $ 5,507 $ 5,641 |
Real Estate Inventories
Real Estate Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Real Estate Inventories [Abstract] | |
Real Estate Inventories | Real Estate Inventories Real estate inventories are summarized as follows: March 31, 2024 December 31, 2023 (dollars in thousands) Deposits and pre-acquisition costs $ 122,237 $ 99,702 Land held and land under development 268,829 272,825 Homes completed or under construction 744,261 692,126 Model homes 61,179 57,073 Total real estate inventories $ 1,196,506 $ 1,121,726 Deposits and pre-acquisition costs include land deposits and other due diligence costs related to potential land acquisitions. Land held and land under development includes costs incurred during site development such as development, indirect costs, and permits. Homes completed or under construction and model homes include all costs associated with home construction, including land, development, indirect costs, permits, materials, and labor. In accordance with ASC 360, Property, Plant, and Equipment, real estate inventories are stated at cost, unless the carrying amount is determined not to be recoverable, in which case inventory is written down to its fair value. The Company reviews each real estate asset at the community-level, on a quarterly basis or whenever indicators of impairment exist. The Company generally determines the estimated fair value of each community by using a discounted cash flow approach based on the estimated future cash flows at discount rates that reflect the risk of the community being evaluated. The discounted cash flow approach can be impacted significantly by the Company’s estimates of future home sales revenue, home construction costs, pace of homes sales, and the applicable discount rate. |
Capitalized Interest
Capitalized Interest | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Capitalized Interest | Capitalized Interest Interest is capitalized to real estate inventories during development and as a result of other qualifying activities. Interest capitalized as a cost of real estate inventories is included in cost of sales as related inventories are delivered. For the three months ended March 31, 2024, and 2023, the Company incurred and capitalized interest of $15.3 million and $11.9 million, respectively. Previously capitalized interest included in cost of sales during the three months ended March 31, 2024, and 2023, was $10.6 million and $4.6 million, respectively. These amounts included interest from certain related party transactions, refer to Note 9 – Related Party Transactions for additional information. |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other AssetsAs of March 31, 2024 and December 31, 2023, the Company had contract assets of $3.1 million and $6.0 million, respectively, related to lot sales and other revenue. The contract asset balance is included in other assets on the Company’s consolidated balance sheets and represents cash to be received for work already performed on lot sales and other contracts. The amount of the transaction price for lot sales and other contracts remaining to be recognized as revenue for performance obligations that were not fully satisfied as of March 31, 2024 and December 31, 2023 was $0.4 million and $1.1 million, respectively. As of March 31, 2024, the Company had $0.2 million of deferred revenue related to lot sales and other revenue included in accrued expenses and other liabilities in the Company’s consolidated balance sheets. As of December 31, 2023, the Company had $0.2 million deferred revenue related to lot sales and other revenue. The Company reduces these liabilities and recognizes revenue as development progresses and the related performance obligations are completed. |
Notes and Other Debts Payable,
Notes and Other Debts Payable, net | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Notes and Other Debts Payable, net | Notes and Other Debts Payable, net Amounts outstanding under notes and other debts payable, net consist of the following: March 31, 2024 December 31, 2023 (dollars in thousands) 11.0% Senior Notes $ 250,000 $ 250,000 Discount and deferred loan costs (13,087) (13,857) Senior notes, net $ 236,913 $ 236,143 March 31, 2024 December 31, 2023 (dollars in thousands) Line of credit facility $ 355,000 $ 315,000 Deferred loan costs (6,763) (7,369) Line of credit facility, net $ 348,237 $ 307,631 In October 2021, the Company entered into a line of credit agreement (the “Credit Agreement”). The Credit Agreement provides for a senior unsecured borrowing of up to $675.0 million of which there was $355.0 million outstanding as of March 31, 2024. The Company may increase the borrowing capacity up to $850.0 million, under certain conditions. Funds available under the Credit Agreement are subject to a borrowing base requirement which is calculated on specified percentages of our real estate inventories. Borrowings under the Credit Agreement bear interest at the Secured Overnight Financing Rate (“SOFR”) plus 3.35% or Prime Rate (as defined in the Credit Agreement) plus 2.75%. The interest rate includes a floor of 3.85%. The Credit Agreement was modified three times in 2022, which resulted in an increase in the borrowing commitment from $585.0 million to $675.0 million, the replacement of LIBOR with SOFR as an index rate, and an extension of the maturity date to October 2025. In July 2023, the Credit Agreement was modified to extend the maturity date to October 2026. As of March 31, 2024, the interest rate on the loan was 8.67%. In July 2023, the Company entered into a senior unsecured note (the “Note Purchase Agreement”). The Note Purchase Agreement provided for the private placement of $250.0 million aggregate principal amount of 11.0% senior notes (the “11.0% Senior Notes”). The Company received the proceeds, net of discount and fees, in July 2023. The Senior Notes mature in July 2028. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal —The Company is currently involved in various legal actions and proceedings that arise from time to time and may be subject to similar or other legal and/or regulatory actions in the future. The Company is currently unable to estimate the likelihood of an unfavorable result in any such proceeding that could have a material adverse effect on the Company’s results of operations, financial position, or liquidity. In the fourth quarter of 2021, three insurers paid $14.9 million on behalf of the Company and others to settle a wrongful death suit. The insurers contend they are entitled to seek reimbursement from the Company for some or all of such amounts, which the Company disputes. During October 2023, one of the insurers filed a lawsuit seeking reimbursement and the two other insurers subsequently asserted reimbursement claims in the lawsuit. However, at this time the Company is unable to predict the outcome of the insurers’ claims against the Company or estimate the amount of any potential damages associated therewith. Performance Obligations —In the ordinary course of business, and as part of the entitlement and development process, the Company’s subsidiaries are required to provide performance bonds to assure completion of certain public facilities. The Company had $92.6 million and $109.3 million of performance bonds outstanding as of March 31, 2024 and December 31, 2023, respectively. Warranty —Estimated future direct warranty costs are accrued and charged to cost of sales in the period when the related homebuilding revenues are recognized. Changes in the Company’s warranty accrual are detailed in the table below: Three Months Ended March 31, 2024 2023 (dollars in thousands) Beginning warranty accrual $ 48,949 $ 46,657 Warranty provision 1,736 911 Warranty payments (1,584) (1,338) Ending warranty accrual $ 49,101 $ 46,230 Operating Leases —The Company primarily enters into operating leases for the right to use office space, model homes, and computer and office equipment, which have remaining lease terms that range from 1 to 8 years and often include one or more options to renew. During December 2021, the Company sold model homes and immediately leased back these models. Certain of these model homes were not complete at the time of sale. All of the leases from the sale-leasebacks are accounted for as operating leases and are reflected as part of the Company’s right-of-use assets and lease liabilities in the accompanying consolidated balance sheets. Certain of these sales were to a related party; refer to Note 9 – Related Party Transactions for further detail. The weighted average remaining lease term as of March 31, 2024 and December 31, 2023 was 6.6 and 5.7 years, respectively. Renewal terms are included in the lease term when it is reasonably certain the option will be exercised. The Company established a right-of-use asset and a lease liability based on the present value of future minimum lease payments at the commencement date of the lease, or, if subsequently modified, the date of modification for active leases. As the rate implicit in each lease is not readily determinable, the Company’s incremental borrowing rate is used in determining the present value of future minimum payments as of the commencement date. The weighted average rate as of March 31, 2024 and December 31, 2023 was 6.4% and 5.5%, respectively. Lease components and non-lease components are accounted for as a single lease component. As of March 31, 2024, the Company had $13.8 million and $14.9 million recognized as a right-of-use asset and lease liability, respectively, which are presented on the consolidated balance sheets within other assets and accrued expenses and other liabilities, respectively. As of December 31, 2023, the Company had $11.9 million and $13.1 million recognized as a right-of-use asset and lease liability, respectively. Operating lease expense for the three months ended March 31, 2024 and 2023, was $0.8 million and $1.0 million, respectively, and is included in general and administrative expenses on the consolidated statements of operations. Future minimum payments under the noncancelable operating leases in effect at March 31, 2024 were as follows (dollars in thousands) : 2024 $ 2,492 2025 2,710 2026 2,554 2027 2,768 2028 2,384 Thereafter 4,958 Total lease payments 17,866 Less: Discount (2,973) Present value of lease liabilities $ 14,893 |
Commitments and Contingencies | Commitments and Contingencies Legal —The Company is currently involved in various legal actions and proceedings that arise from time to time and may be subject to similar or other legal and/or regulatory actions in the future. The Company is currently unable to estimate the likelihood of an unfavorable result in any such proceeding that could have a material adverse effect on the Company’s results of operations, financial position, or liquidity. In the fourth quarter of 2021, three insurers paid $14.9 million on behalf of the Company and others to settle a wrongful death suit. The insurers contend they are entitled to seek reimbursement from the Company for some or all of such amounts, which the Company disputes. During October 2023, one of the insurers filed a lawsuit seeking reimbursement and the two other insurers subsequently asserted reimbursement claims in the lawsuit. However, at this time the Company is unable to predict the outcome of the insurers’ claims against the Company or estimate the amount of any potential damages associated therewith. Performance Obligations —In the ordinary course of business, and as part of the entitlement and development process, the Company’s subsidiaries are required to provide performance bonds to assure completion of certain public facilities. The Company had $92.6 million and $109.3 million of performance bonds outstanding as of March 31, 2024 and December 31, 2023, respectively. Warranty —Estimated future direct warranty costs are accrued and charged to cost of sales in the period when the related homebuilding revenues are recognized. Changes in the Company’s warranty accrual are detailed in the table below: Three Months Ended March 31, 2024 2023 (dollars in thousands) Beginning warranty accrual $ 48,949 $ 46,657 Warranty provision 1,736 911 Warranty payments (1,584) (1,338) Ending warranty accrual $ 49,101 $ 46,230 Operating Leases —The Company primarily enters into operating leases for the right to use office space, model homes, and computer and office equipment, which have remaining lease terms that range from 1 to 8 years and often include one or more options to renew. During December 2021, the Company sold model homes and immediately leased back these models. Certain of these model homes were not complete at the time of sale. All of the leases from the sale-leasebacks are accounted for as operating leases and are reflected as part of the Company’s right-of-use assets and lease liabilities in the accompanying consolidated balance sheets. Certain of these sales were to a related party; refer to Note 9 – Related Party Transactions for further detail. The weighted average remaining lease term as of March 31, 2024 and December 31, 2023 was 6.6 and 5.7 years, respectively. Renewal terms are included in the lease term when it is reasonably certain the option will be exercised. The Company established a right-of-use asset and a lease liability based on the present value of future minimum lease payments at the commencement date of the lease, or, if subsequently modified, the date of modification for active leases. As the rate implicit in each lease is not readily determinable, the Company’s incremental borrowing rate is used in determining the present value of future minimum payments as of the commencement date. The weighted average rate as of March 31, 2024 and December 31, 2023 was 6.4% and 5.5%, respectively. Lease components and non-lease components are accounted for as a single lease component. As of March 31, 2024, the Company had $13.8 million and $14.9 million recognized as a right-of-use asset and lease liability, respectively, which are presented on the consolidated balance sheets within other assets and accrued expenses and other liabilities, respectively. As of December 31, 2023, the Company had $11.9 million and $13.1 million recognized as a right-of-use asset and lease liability, respectively. Operating lease expense for the three months ended March 31, 2024 and 2023, was $0.8 million and $1.0 million, respectively, and is included in general and administrative expenses on the consolidated statements of operations. Future minimum payments under the noncancelable operating leases in effect at March 31, 2024 were as follows (dollars in thousands) : 2024 $ 2,492 2025 2,710 2026 2,554 2027 2,768 2028 2,384 Thereafter 4,958 Total lease payments 17,866 Less: Discount (2,973) Present value of lease liabilities $ 14,893 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company continues to pay for certain costs on behalf of Landsea Holdings Corporation (“Landsea Holdings”) which was previously the majority stockholder of the Company. The Company records a due from affiliate balance for all such payments. As of March 31, 2024 and December 31, 2023, the Company had a net receivable due from affiliates balance of $3.6 million and $3.5 million, respectively. In March 2024, Landsea Holdings, the Company’s then-majority stockholder, completed a registered secondary offering of the Company’s common stock. The Company did not purchase any shares of common stock that were sold by Landsea Holdings in the offering. The Company paid costs, fees, and expenses for the offering of $0.6 million, and Landsea Holdings received all net proceeds from the sale. Landsea Holdings no longer owned greater than 50% of the Company’s common stock upon completion of the offering. As a result, the Company no longer qualifies as a “controlled company” under The Nasdaq stock Market LLC (“Nasdaq”) listing standards. In August 2023, the Company repurchased from the underwriters, at the public offering price of $9.75 per share, 800,000 shares of common stock that were sold by Green Investment Alpha Limited (“Green Investment”), a beneficial owner of the Company, in a registered secondary offering, for a total purchase price of $7.8 million. The Company paid costs, fees, and expenses for the offering of $0.3 million, and Green Investment received all net proceeds from the sale. Green Investment is required to reimburse the Company for the costs, fees and expenses incurred in offering. Green Investment no longer qualified as a related party upon the completion of the offering. In June 2023, the Company repurchased from the underwriters, at the public offering price of $7.50 per share, 443,478 shares of common stock that were sold by Landsea Holdings, the Company’s then-majority stockholder, in a registered secondary offering, for a total purchase price of $3.3 million. The Company paid costs, fees, and expenses for the offering of $0.8 million, and Landsea Holdings received all net proceeds from the offering. In June 2022, Landsea Capital Fund, who is under common control with the Company, contributed $55.0 million to the LCF JV. The LCF JV, which is consolidated by the Company, used these proceeds to purchase undeveloped land from the Company. The Company distributed $6.8 million and $0.9 million to Landsea Capital Fund during the three months ended March 31, 2024, and 2023, respectively. All intercompany transactions between the Company and the LCF JV have been eliminated upon consolidation. In December 2021, the Company sold model homes to a related party for total consideration of $15.2 million. As part of this transaction, the Company leased back these models. The total amount of rent payments made during the three months ended March 31, 2024, and 2023, were $0.2 million and $0.2 million, respectively. The right-of-use asset and lease liability balances associated with these leases is $0.4 million and $0.4 million, respectively, as of March 31, 2024 and $0.5 million and $0.5 million, respectively, as of December 31, 2023. In July 2021, the Company entered into a landbank agreement for a project in its California segment with a related party. The Company will make regular payments to the related party based on an annualized rate of 7% of the undeveloped land costs while the land is developed and may purchase, at the Company’s discretion, the lots at a predetermined price of $28.9 million. The total amount of interest payments made during the three months ended March 31, 2024 and 2023, was less than $0.1 million and $0.2 million, respectively. During the three months ended March 31, 2024, no payments have been made to purchase land under the agreement. During the three months ended March 31, 2023, payments of $1.0 million, including fees, were made to purchase developed lots from the related party. Capitalized interest included in real estate inventories on the consolidated balance sheets associated with this transaction was $0.9 million and $1.0 million as of March 31, 2024 and December 31, 2023, respectively. Previously capitalized related party interest included in cost of sales during the three months ended March 31, 2024 and 2023, was $0.2 million and $0.3 million, respectively. Landsea Holdings holds a series of notes payable to affiliated entities of its parent. The cash Landsea Holdings received from this debt was previously utilized to partially fund operations of the Company. Related party interest incurred by Landsea Holdings was historically pushed down to the Company and reflected on the consolidated balance sheets of the Company, primarily in real estate inventories, and on the consolidated statements of operations in cost of sales. Refer to Note 5 – Capitalized Interest for further detail. As the Company did not guarantee the notes payable nor have any obligations to repay the notes payable, and as the notes payable were not assigned to the Company, the notes payable do not represent a liability of the Company and accordingly have not been reflected in the consolidated balance sheets. Additionally, in connection with the Merger (as defined below), the Company is precluded from repaying Landsea Holdings ’ notes payable to the affiliated entities of its parent. Therefore, beginning January 7, 2021, additional interest from these notes payable is no longer pushed do |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes for the three months ended March 31, 2024 was a benefit of less than $0.1 million compared to a provision of $1.6 million for the three months ended March 31, 2023. Th e effective tax rate of the Company was a benefit of 4.3% and a provision of 28.2% for the three months ended March 31, 2024 and 2023, respectively. The difference between the statutory tax rate and the effective tax rate for the three months ended March 31, 2024 is primarily related to excess tax benefits on share-based compensation and tax credits for energy-efficient homes, partially offset by state income taxes net of federal income tax benefits and estimated deduction limitations for executive compensation under Section 162(m). The difference between the statutory tax rate and the effective tax rate for the three months ended March 31, 2023 is primarily related to state income taxes net of federal income tax benefits and estimated deduction limitations for executive compensation under Section 162(m), partially offset by tax credits for energy-efficient homes. The accounting for deferred taxes is based upon estimates of future results. Differences between the anticipated and actual outcomes of these future results could have a material impact on the Company’s consolidated results of operations or financial position. Also, changes in existing federal and state tax laws and tax rates could affect future tax results and the valuation of the Company’s deferred tax assets. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company is engaged in the acquisition, development, and sale of homes and lots in multiple states across the country. The Company is managed by geographic location and each of the six geographic regions targets a wide range of buyer profiles including: first time, move-up, and luxury homebuyers. Management of the six geographic regions report to the Company’s chief operating decision makers (“CODMs”), the Chief Executive Officer and Chief Operating Officer of the Company. The CODMs review the results of operations, including total revenue and pretax income to assess profitability and to allocate resources. Accordingly, the Company has presented its operations as the following six reportable segments: • Arizona • California • Colorado • Florida • Metro New York • Texas The Company has also identified its Corporate operations as a non-operating segment, as it serves to support the homebuilding operations through functional departments such as executive, finance, treasury, human resources, accounting, and legal. The majority of Corporate personnel and resources are primarily dedicated to activities relating to operations and are allocated based on each segment’s respective percentage of assets, revenue, and dedicated personnel. The following table summarizes total revenue and pretax income by segment: Three Months Ended March 31, 2024 2023 (dollars in thousands) Revenue Arizona $ 79,485 $ 73,589 California 131,894 67,258 Colorado 8,854 — Florida 73,060 95,057 Metro New York — 1,649 Texas 748 4,187 Total revenues $ 294,041 $ 241,740 Pretax income (loss) Arizona $ 479 $ 183 California 8,211 2,937 Colorado (1,152) — Florida (235) 8,227 Metro New York (491) (603) Texas (1,936) (1,320) Corporate (4,172) (3,684) Total pretax income $ 704 $ 5,740 The following table summarizes total assets by segment: March 31, 2024 December 31, 2023 (dollars in thousands) Assets Arizona $ 357,969 $ 336,424 California 462,041 479,218 Colorado 30,329 27,240 Florida 445,298 425,154 Metro New York 41,665 42,047 Texas 95,803 60,255 Corporate 110,272 100,894 Total assets $ 1,543,377 $ 1,471,232 Included in the Corporate segment assets is cash and cash equivalents of $49.5 million and $65.2 million as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024 and December 31, 2023, goodwill of $47.9 million and $20.7 million was allocated to the Florida and Arizona segments, respectively. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value ASC 820, Fair Value Measurement , defines fair value as the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and requires assets and liabilities carried at fair value to be classified and disclosed in the following three categories: Level 1 — Quoted prices for identical instruments in active markets. Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date. Level 3 — Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date. The following table presents carrying values and estimated fair values of financial instruments: March 31, 2024 December 31, 2023 Hierarchy Carrying Value Fair Value Carrying Value Fair Value (dollars in thousands) Liabilities: Line of credit facility (1) Level 2 $ 355,000 $ 355,000 $ 315,000 $ 315,000 Senior notes Level 2 $ 250,000 $ 257,500 $ 250,000 $ 257,500 (1) Carrying amount approximates fair value due to the variable interest rate terms of these loans. Carrying value excludes any associated deferred loan costs. The carrying values of receivables, deposits, and other assets as well as accounts payable and accrued liabilities approximate the fair value for these financial instruments based upon an evaluation of the underlying characteristics, market data, and because of the short period of time between origination of the instruments and their expected realization. The fair value of cash and cash equivalents is classified in Level 1 of the fair value hierarchy. Non-financial assets such as real estate inventories and goodwill are measured at fair value on a non-recurring basis using a discounted cash flow approach with Level 3 inputs within the fair value hierarchy. This measurement is performed when events and circumstances indicate the asset’s carrying value is not fully recoverable. During the three months ended March 31, 2024 and 2023, the Company determined that none of the real estate inventories or goodwill required impairment. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The following table presents a summary of the Company’s nonvested performance share units (“PSUs”) and restricted stock units (“RSUs”) for the three months ended March 31, 2024: Awards Weighted Average Grant Date Fair Value (in thousands) Nonvested, at December 31, 2023 1,488 $ 8.74 Granted — — Vested (156) 9.64 Forfeited (39) 9.44 Nonvested, at March 31, 2024 1,293 $ 8.61 The following table presents a summary of the Company’s stock options activity for the three months ended March 31, 2024: Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Options outstanding at December 31, 2023 684 $ 8.08 Granted 296 12.42 Exercised (72) 8.42 Forfeited — — Options outstanding at March 31, 2024 908 $ 9.47 8.74 $ 4,593 Options exercisable at March 31, 2024 314 $ 8.38 8.11 $ 1,933 Stock-based compensation expense totaled $0.7 million during the three months ended March 31, 2024, and is included in general and administrative expenses on the consolidated statements of operations. For the three months ended March 31, 2023, net stock-based compensation activity resulted in a reduction to expense of $0.4 million due to the forfeiture of certain options as well as the revised estimates on the expected PSU achievement. The following table presents a summary of the Company’s outstanding RSUs and PSUs, assuming the current estimated level of performance achievement: March 31, 2024 (in thousands, except period) Unvested units 1,293 Remaining cost on unvested units $ 1,505 Remaining vesting period 2.75 years Stock-based compensation expense associated with the outstanding RSUs and PSUs is measured using the grant date fair value which is based on the closing price as of the grant date. The expense associated with the PSUs also incorporates the estimated achievement of the established performance criteria at the end of each reporting period until the performance period ends. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The Company’s authorized capital stock consists of 500.0 million shares of common stock with a par value of $0.0001 per share, and 50.0 million shares of preferred stock with a par value of $0.0001 per share. As of March 31, 2024, there were 41.5 million shares of common stock issued and 36.1 million outstanding, and no shares of preferred stock issued or outstanding. All outstanding shares of common stock are validly issued, fully paid and nonassessable. Stock Repurchases In March 2023, the Board of Directors authorized a stock repurchase program allowing for the repurchase of up to $10.0 million worth of common stock, with an expiration of December 31, 2023. In July 2023, the Board of Directors authorized additional capacity of approximately $3.3 million, with an expiration date of December 31, 2023, and an additional $10.0 million with no stated expiration date. In October 2023, the Board of Directors authorized additional capacity of $20.0 million with no stated expiration date. No additional stock repurchase authorizations occurred during the three months ended March 31, 2024. During the three months ended March 31, 2024, the Company repurchased 534,436 shares of common stock for a total of $6.4 million, excluding commissions, which was recorded as a reduction to additional paid-in capital. As of March 31, 2024, the Company had approximately $2.5 million in remaining capacity from previous authorizations. No stock was repurchased during the three months ended March 31, 2023. The timing and amount of repurchases are based on a variety of factors such as the market price of the Company's common stock, corporate and contractual requirements, market and economic conditions, and legal requirements. Merger Transaction On August 31, 2020, Landsea Homes and Landsea Holdings entered into an Agreement and Plan of Merger (the “Merger Agreement”) with LF Capital Acquisition Corp. (“LF Capital”) and LFCA Merger Sub, Inc. (the “Merger Sub”), a direct, wholly-owned subsidiary of LF Capital. The Merger Agreement provided for, among other things, the merger of Merger Sub with and into Landsea Homes Incorporated (“LHI”), previously a wholly-owned subsidiary of Landsea Holdings, with LHI continuing as the surviving corporation (the “Merger”). On January 7, 2021 (the “Closing Date”), the Merger was consummated pursuant to the Merger Agreement (the “Closing”). The name of LF Capital was changed at that time to Landsea Homes Corporation. Upon closing of the Merger, Level Field Capital, LLC (the “Sponsor”) held 1.0 million shares that were subject to surrender and forfeiture for no consideration in the event the common stock did not reach certain thresholds during the 24-month period following the closing of the Merger (the “Earnout Shares”). The Sponsor transferred 0.5 million Earnout Shares to Landsea Holdings. In January 2023, the Company concluded that the threshold for the Earnout Shares was not met and therefore those shares were forfeited and cancelled. Warrants As of March 31, 2024, there were 15,525,000 outstanding warrants consisting entirely of public warrants (the “Warrants”). At the time of the Merger, the Warrant Agreement was amended so that each public warrant is exercisable at $1.15 for one tenth of a share of common stock. As part of the amendment, each holder of the public warrants received $1.85 per warrant for a total of $28.7 million paid by the Company upon closing of the Merger. The Warrants will expire five years after the completion of the Merger or earlier upon redemption or liquidation. The Company may call the public warrants for redemption: • in whole and not in part; • at a price of $0.01 per warrant; • upon a minimum of 30 days’ prior written notice of redemption; and • if, and only if, the last reported closing price of the shares equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders. If the Company calls the public warrants for redemption, management will have the option to require all holders that wish to exercise the public warrants to do so on a “cashless basis,” as described in the Warrant Agreement. The exercise price and number of common shares issuable upon exercise of the Warrants may be adjusted in certain circumstances including in the event of a share dividend, or recapitalization, reorganization, merger or consolidation. However, the Warrants will not be adjusted for issuance of common shares at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Warrants shares. Accordingly, the Warrants may expire worthless. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the three and three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 (dollars in thousands, except share and per share amounts) Numerator Net income attributable to common stockholders $ 190 $ 3,218 Denominator Weighted average common shares outstanding - basic 36,279,679 39,997,699 Dilutive effect of warrants 135,932 — Dilutive effect of options 146,408 — Dilutive effect of share-based awards 236,703 119,174 Weighted average common shares outstanding - diluted 36,798,722 40,116,873 Earnings per share Basic $ 0.01 $ 0.08 Diluted $ 0.01 $ 0.08 |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information The following table presents certain supplemental cash flow information: Three Months Ended March 31, 2024 2023 (dollars in thousands) Supplemental disclosures of cash flow information Interest paid, net of amounts capitalized $ — $ — Income taxes paid $ 378 $ — Supplemental disclosures of non-cash investing and financing activities Change in right-of-use assets for new, modified, or terminated operating leases $ 2,553 $ (837) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In April 2024, the Company completed the sale to certain purchasers of $300.0 million of 8.875% senior notes (the “8.875% Senior Notes”) due 2029. The 8.875% Senior Notes were not registered under the Securities Act of 1933, as amended (the “Securities Act”), and were offered and sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and to certain non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act. Interest on the 8.875% Senior Notes will be paid semi-annually on April 1 and October 1, commencing October 1, 2024. The 8.875% Senior Notes will mature on April 1, 2029. In April 2024, the Company completed the acquisition of Antares Acquisition, LLC (“Antares Homes”), a Dallas Fort Worth based homebuilder, for approximately $242.6 million (subject to certain customary post-closing adjustments) using a combination of cash on hand and borrowings under the Company’s existing credit facility, which included repayment of approximately $43.2 million of Antares Homes debt. The total assets of Antares Homes included approximately 2,100 lots owned or controlled. The determination of the purchase accounting is in process as of the date of these consolidated financial statements. In April 2024, the Company amended the Credit Agreement (“Amended Credit Agreement”) to reduce the commitment from $675.0 million to $355.0 million and extend the maturity date to April 2027. Borrowings under the Amended Credit Agreement bear interest at a daily simple SOFR rate, a term SOFR rate, or a base rate (in each case calculated in accordance with the Amended Credit Agreement), plus, in each case, an applicable margin. The applicable margin will be adjusted by reference to a grid based on a leverage ratio calculated in accordance with the Amended Credit Agreement. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 190 | $ 3,218 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Company and Summary of Signif_2
Company and Summary of Significant Account Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation and Consolidation |
Principles of Consolidation | The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 29, 2024. The accompanying unaudited consolidated financial statements include all adjustments, consisting of normal recurring entries, necessary for a fair presentation of the Company’s results for the interim periods presented. Results for the interim periods are not necessarily indicative of the results to be expected for the full year due to seasonal variations and other factors. |
Use of Estimates | Use of Estimates |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2023, the FASB issued ASU 2023-01, which amends the application of ASU 2016-02, Leases (Topic 842), related to leases with entities under common control, also referred to as common control leases. The amendments to this update require an entity to consider the useful life of leasehold improvements associated with common control leases from the perspective of the common control group and amortize the leasehold improvements over the useful life of the assets to the common control group, instead of the term of the lease. Any remaining value for the leasehold improvement at the end of the lease would be adjusted through equity. The standard was effective for fiscal years beginning after December 15, 2023, early adoption was permitted. The adoption did not have a material impact on the Company’s consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of additional segment information. The guidance requires entities to provide significant segment expenses that are regularly provided to the entity’s chief operating decision maker (“CODM”), other segment items to reconcile segment revenue and significant expenses to the reported measure of segment profit or loss, a description of the composition of the other segment items, and the title and position of the CODM. The amendments in this update also expand the segment disclosure requirements to interim periods. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The new guidance must be applied retrospectively to all prior periods presented in the financial statements, with the significant segment expense and other segment item amounts disclosed based on categories identified in the period of adoption. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires annual disclosure of specific categories in the income tax rate reconciliation and of additional information for reconciling items that meet a quantitative threshold among other changes. Specifically, the guidance requires a tabular reconciliation disclosure, using both percentages and amounts. The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table summarizes the carrying amount and classification of the VIEs’ assets and liabilities in the consolidated balance sheets as of March 31, 2024 and December 31, 2023. March 31, 2024 December 31, 2023 (dollars in thousands) Cash $ 6,238 $ 2,950 Real estate inventories 69,382 79,441 Due from affiliates 148 203 Other assets 2,093 2,107 Total assets $ 77,861 $ 84,701 Accounts payable $ 304 $ 384 Accrued expenses and other liabilities 5,203 5,257 Total liabilities $ 5,507 $ 5,641 |
Real Estate Inventories (Tables
Real Estate Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Real Estate Inventories [Abstract] | |
Schedule of Real Estate Inventories | Real estate inventories are summarized as follows: March 31, 2024 December 31, 2023 (dollars in thousands) Deposits and pre-acquisition costs $ 122,237 $ 99,702 Land held and land under development 268,829 272,825 Homes completed or under construction 744,261 692,126 Model homes 61,179 57,073 Total real estate inventories $ 1,196,506 $ 1,121,726 |
Notes and Other Debts Payable_2
Notes and Other Debts Payable, net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Amounts outstanding under notes and other debts payable, net consist of the following: March 31, 2024 December 31, 2023 (dollars in thousands) 11.0% Senior Notes $ 250,000 $ 250,000 Discount and deferred loan costs (13,087) (13,857) Senior notes, net $ 236,913 $ 236,143 March 31, 2024 December 31, 2023 (dollars in thousands) Line of credit facility $ 355,000 $ 315,000 Deferred loan costs (6,763) (7,369) Line of credit facility, net $ 348,237 $ 307,631 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | Estimated future direct warranty costs are accrued and charged to cost of sales in the period when the related homebuilding revenues are recognized. Changes in the Company’s warranty accrual are detailed in the table below: Three Months Ended March 31, 2024 2023 (dollars in thousands) Beginning warranty accrual $ 48,949 $ 46,657 Warranty provision 1,736 911 Warranty payments (1,584) (1,338) Ending warranty accrual $ 49,101 $ 46,230 |
Schedule of Operating Lease Maturity | Future minimum payments under the noncancelable operating leases in effect at March 31, 2024 were as follows (dollars in thousands) : 2024 $ 2,492 2025 2,710 2026 2,554 2027 2,768 2028 2,384 Thereafter 4,958 Total lease payments 17,866 Less: Discount (2,973) Present value of lease liabilities $ 14,893 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table summarizes total revenue and pretax income by segment: Three Months Ended March 31, 2024 2023 (dollars in thousands) Revenue Arizona $ 79,485 $ 73,589 California 131,894 67,258 Colorado 8,854 — Florida 73,060 95,057 Metro New York — 1,649 Texas 748 4,187 Total revenues $ 294,041 $ 241,740 Pretax income (loss) Arizona $ 479 $ 183 California 8,211 2,937 Colorado (1,152) — Florida (235) 8,227 Metro New York (491) (603) Texas (1,936) (1,320) Corporate (4,172) (3,684) Total pretax income $ 704 $ 5,740 |
Schedule of Reconciliation of Assets from Segment to Consolidated | The following table summarizes total assets by segment: March 31, 2024 December 31, 2023 (dollars in thousands) Assets Arizona $ 357,969 $ 336,424 California 462,041 479,218 Colorado 30,329 27,240 Florida 445,298 425,154 Metro New York 41,665 42,047 Texas 95,803 60,255 Corporate 110,272 100,894 Total assets $ 1,543,377 $ 1,471,232 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents carrying values and estimated fair values of financial instruments: March 31, 2024 December 31, 2023 Hierarchy Carrying Value Fair Value Carrying Value Fair Value (dollars in thousands) Liabilities: Line of credit facility (1) Level 2 $ 355,000 $ 355,000 $ 315,000 $ 315,000 Senior notes Level 2 $ 250,000 $ 257,500 $ 250,000 $ 257,500 (1) Carrying amount approximates fair value due to the variable interest rate terms of these loans. Carrying value excludes any associated deferred loan costs. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Compensation Expense | The following table presents a summary of the Company’s nonvested performance share units (“PSUs”) and restricted stock units (“RSUs”) for the three months ended March 31, 2024: Awards Weighted Average Grant Date Fair Value (in thousands) Nonvested, at December 31, 2023 1,488 $ 8.74 Granted — — Vested (156) 9.64 Forfeited (39) 9.44 Nonvested, at March 31, 2024 1,293 $ 8.61 |
Schedule of Stock Option Activity | The following table presents a summary of the Company’s stock options activity for the three months ended March 31, 2024: Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Options outstanding at December 31, 2023 684 $ 8.08 Granted 296 12.42 Exercised (72) 8.42 Forfeited — — Options outstanding at March 31, 2024 908 $ 9.47 8.74 $ 4,593 Options exercisable at March 31, 2024 314 $ 8.38 8.11 $ 1,933 |
Schedule of Outstanding RSUs and PSUs | The following table presents a summary of the Company’s outstanding RSUs and PSUs, assuming the current estimated level of performance achievement: March 31, 2024 (in thousands, except period) Unvested units 1,293 Remaining cost on unvested units $ 1,505 Remaining vesting period 2.75 years |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the three and three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 (dollars in thousands, except share and per share amounts) Numerator Net income attributable to common stockholders $ 190 $ 3,218 Denominator Weighted average common shares outstanding - basic 36,279,679 39,997,699 Dilutive effect of warrants 135,932 — Dilutive effect of options 146,408 — Dilutive effect of share-based awards 236,703 119,174 Weighted average common shares outstanding - diluted 36,798,722 40,116,873 Earnings per share Basic $ 0.01 $ 0.08 Diluted $ 0.01 $ 0.08 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table presents certain supplemental cash flow information: Three Months Ended March 31, 2024 2023 (dollars in thousands) Supplemental disclosures of cash flow information Interest paid, net of amounts capitalized $ — $ — Income taxes paid $ 378 $ — Supplemental disclosures of non-cash investing and financing activities Change in right-of-use assets for new, modified, or terminated operating leases $ 2,553 $ (837) |
Company and Summary of Signif_3
Company and Summary of Significant Account Policies (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 6 |
Asset Acquisition - Narrative (
Asset Acquisition - Narrative (Details) - Richfield Homes Lots $ in Millions | Oct. 10, 2023 USD ($) lot |
Business Acquisition [Line Items] | |
Payments to acquire productive assets | $ | $ 22.5 |
Number of lots acquired | lot | 290 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Variable Interest Entities (Details) $ in Thousands | Mar. 31, 2024 USD ($) project | Dec. 31, 2023 USD ($) |
Variable Interest Entity [Line Items] | ||
Cash | $ 121,492 | $ 119,555 |
Real estate inventories | 1,196,506 | 1,121,726 |
Total assets | 1,543,377 | 1,471,232 |
Accounts payable | 88,707 | 77,969 |
Accrued expenses and other liabilities | 192,115 | 160,256 |
Total liabilities | $ 866,853 | 782,880 |
Variable Interest Entities | ||
Variable Interest Entity [Line Items] | ||
Number of VIE's | project | 2 | |
Cash | $ 6,238 | 2,950 |
Real estate inventories | 69,382 | 79,441 |
Other assets | 2,093 | 2,107 |
Total assets | 77,861 | 84,701 |
Accounts payable | 304 | 384 |
Accrued expenses and other liabilities | 5,203 | 5,257 |
Total liabilities | 5,507 | 5,641 |
Variable Interest Entities | Related Party | ||
Variable Interest Entity [Line Items] | ||
Due from affiliates | $ 148 | $ 203 |
Variable Interest Entities | 14th Ave JV | NEW YORK | ||
Variable Interest Entity [Line Items] | ||
Number of VIE's | project | 1 | |
Variable Interest Entities | LCF Joint Venture | ||
Variable Interest Entity [Line Items] | ||
Number of VIE's | project | 1 |
Real Estate Inventories - Sched
Real Estate Inventories - Schedule of Real Estate Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Real Estate Inventories [Abstract] | ||
Deposits and pre-acquisition costs | $ 122,237 | $ 99,702 |
Land held and land under development | 268,829 | 272,825 |
Homes completed or under construction | 744,261 | 692,126 |
Model homes | 61,179 | 57,073 |
Total real estate inventories | $ 1,196,506 | $ 1,121,726 |
Real Estate Inventories - Narra
Real Estate Inventories - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Real Estate Inventories [Abstract] | ||
Impairment of real estate | $ 0 | $ 0 |
Capitalized Interest (Details)
Capitalized Interest (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Interest costs capitalized adjustment | $ 15.3 | $ 11.9 |
Interest expense, related party | $ 10.6 | $ 4.6 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Contract assets | $ 3.1 | $ 6 |
Remaining performance obligation, amount | 0.4 | 1.1 |
Deferred revenue | $ 0.2 | $ 0.2 |
Notes and Other Debts Payable_3
Notes and Other Debts Payable, net - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 250,000 | $ 250,000 |
Discount and deferred loan costs | (13,087) | (13,857) |
Long-term debt, total | 236,913 | 236,143 |
Line of credit facility | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 355,000 | 315,000 |
Deferred loan costs | (6,763) | (7,369) |
Long-term debt, total | $ 348,237 | $ 307,631 |
Notes and Other Debts Payable_4
Notes and Other Debts Payable, net - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) time | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Jul. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |||||
Line of credit facility, outstanding | $ 348,237,000 | $ 307,631,000 | |||
Line of credit facility | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit agreement, current borrowing capacity | $ 585,000,000 | $ 675,000,000 | |||
Line of credit facility, outstanding | $ 355,000,000 | ||||
Credit facility, maximum borrowing capacity | $ 850,000,000 | ||||
Number credit agreement modifications | time | 3 | ||||
Line of credit facility | Revolving Credit Facility | London Interbank Offer Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.35% | ||||
Line of credit facility | Revolving Credit Facility | Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.75% | ||||
Effective interest rate at period end | 8.67% | ||||
Line of credit facility | Revolving Credit Facility | Minimum | Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.85% | ||||
Unsecured Debt | Note Purchase Agreement | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 250,000,000 | ||||
Interest rate, stated percentage | 11% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 USD ($) extension | Mar. 31, 2023 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) | |
Loss Contingencies [Line Items] | ||||
Number of options to renew | extension | 1 | |||
Weighted average remaining lease term (in years) | 6 years 7 months 6 days | 5 years 8 months 12 days | ||
Weighted average rate (percent) | 6.40% | 5.50% | ||
Right-of-use asset | $ 13,800 | $ 11,900 | ||
Lease liabilities | 14,893 | 13,100 | ||
Operating lease expense | $ 800 | $ 1,000 | ||
Minimum | ||||
Loss Contingencies [Line Items] | ||||
Lease term (in years) | 1 year | |||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Lease term (in years) | 8 years | |||
Performance Guarantee | ||||
Loss Contingencies [Line Items] | ||||
Performance bonds outstanding | $ 92,600 | $ 109,300 | ||
Paycheck Protection Program Notes | ||||
Loss Contingencies [Line Items] | ||||
Proceeds from PPP loan | $ 14,900 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Product Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning warranty accrual | $ 48,949 | $ 46,657 |
Warranty provision | 1,736 | 911 |
Warranty payments | (1,584) | (1,338) |
Ending warranty accrual | $ 49,101 | $ 46,230 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Operating Lease Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
2024 | $ 2,492 | |
2025 | 2,710 | |
2026 | 2,554 | |
2027 | 2,768 | |
2028 | 2,384 | |
Thereafter | 4,958 | |
Total lease payments | 17,866 | |
Less: Discount | (2,973) | |
Present value of lease liabilities | $ 14,893 | $ 13,100 |
Related Party Transactions (Det
Related Party Transactions (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |||||||
Mar. 31, 2024 USD ($) | Aug. 31, 2023 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jul. 31, 2021 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Related Party Transaction [Line Items] | |||||||||
Right-of-use asset | $ 13,800 | $ 13,800 | $ 11,900 | ||||||
Present value of lease liabilities | 14,893 | 14,893 | 13,100 | ||||||
Interest expense, related party | 10,600 | $ 4,600 | |||||||
Real estate inventories | $ 1,196,506 | 1,196,506 | 1,121,726 | ||||||
California | |||||||||
Related Party Transaction [Line Items] | |||||||||
Related party transaction, rate | 7% | ||||||||
Landsea Holding Share Repurchase Program | |||||||||
Related Party Transaction [Line Items] | |||||||||
Aggregate net proceeds from stock offering | $ 3,300 | ||||||||
Deferred offering costs | $ 800 | ||||||||
Landsea Holding Share Repurchase Program | Public Stock Offering | |||||||||
Related Party Transaction [Line Items] | |||||||||
Shares sold in offering | shares | 443,478 | ||||||||
Common stock period of transaction | 0.50 | ||||||||
Landsea Holding Share Repurchase Program | Public Stock Offering | Maximum | |||||||||
Related Party Transaction [Line Items] | |||||||||
Reimbursable expenses to the underwriters | $ 600 | ||||||||
Landsea Holding Share Repurchase Program | IPO | |||||||||
Related Party Transaction [Line Items] | |||||||||
Share price (in dollars per share) | $ / shares | $ 7.50 | ||||||||
Green Investment Alpha Limited Share Repurchase Program | |||||||||
Related Party Transaction [Line Items] | |||||||||
Aggregate net proceeds from stock offering | $ 7,800 | ||||||||
Deferred offering costs | $ 300 | ||||||||
Green Investment Alpha Limited Share Repurchase Program | Public Stock Offering | |||||||||
Related Party Transaction [Line Items] | |||||||||
Shares sold in offering | shares | 800,000 | ||||||||
Green Investment Alpha Limited Share Repurchase Program | IPO | |||||||||
Related Party Transaction [Line Items] | |||||||||
Share price (in dollars per share) | $ / shares | $ 9.75 | ||||||||
Equity Method Investee | |||||||||
Related Party Transaction [Line Items] | |||||||||
Due from affiliates | 3,600 | 3,600 | 3,500 | ||||||
Landsea Capital Fund | |||||||||
Related Party Transaction [Line Items] | |||||||||
Related party transaction, amounts of transaction | 6,800 | 900 | |||||||
Landsea Capital Fund | LCF JV | |||||||||
Related Party Transaction [Line Items] | |||||||||
Related party transaction, amounts of transaction | $ 55,000 | ||||||||
Related Party | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenue from related parties | $ 15,200 | ||||||||
Interest expense, related party | 200 | 300 | |||||||
Related Party | Minimum | California | |||||||||
Related Party Transaction [Line Items] | |||||||||
Interest expense, related party | 100 | 200 | |||||||
Related Party | Minimum | Landsea Holdings | |||||||||
Related Party Transaction [Line Items] | |||||||||
Interest expense, related party | 100 | 700 | |||||||
Affiliated Entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Payments for rent | 200 | 200 | |||||||
Right-of-use asset | 400 | 400 | 500 | ||||||
Present value of lease liabilities | 400 | 400 | 500 | ||||||
Real estate inventories | 900 | 900 | 1,000 | ||||||
Affiliated Entity | California | |||||||||
Related Party Transaction [Line Items] | |||||||||
Developed lots purchased in the period | 0 | $ 1,000 | |||||||
Affiliated Entity | California | Predetermined Land Purchase Price | |||||||||
Related Party Transaction [Line Items] | |||||||||
Related party transaction, amounts of transaction | $ 28,900 | ||||||||
Affiliated Entity | Landsea Holdings | |||||||||
Related Party Transaction [Line Items] | |||||||||
Real estate inventories | $ 400 | $ 400 | $ 400 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Tax Credit Carryforward [Line Items] | ||
(Benefit) provision for income taxes | $ (30) | $ 1,617 |
Effective income tax rate | (4.30%) | 28.20% |
Minimum | ||
Tax Credit Carryforward [Line Items] | ||
(Benefit) provision for income taxes | $ 100 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) segment | Dec. 31, 2023 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of geographic regions | segment | 6 | |
Number of reportable segments | segment | 6 | |
Cash | $ 121,492 | $ 119,555 |
Goodwill | 68,639 | 68,639 |
Florida | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 47,900 | 47,900 |
Arizona | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 20,700 | 20,700 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Cash | $ 49,500 | $ 65,200 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 294,041 | $ 241,740 |
Total pretax income | 704 | 5,740 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total pretax income | (4,172) | (3,684) |
Arizona | ||
Segment Reporting Information [Line Items] | ||
Revenue | 79,485 | 73,589 |
Arizona | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total pretax income | 479 | 183 |
California | ||
Segment Reporting Information [Line Items] | ||
Revenue | 131,894 | 67,258 |
California | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total pretax income | 8,211 | 2,937 |
Colorado | ||
Segment Reporting Information [Line Items] | ||
Revenue | 8,854 | 0 |
Colorado | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total pretax income | (1,152) | 0 |
Florida | ||
Segment Reporting Information [Line Items] | ||
Revenue | 73,060 | 95,057 |
Florida | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total pretax income | (235) | 8,227 |
Metro New York | ||
Segment Reporting Information [Line Items] | ||
Revenue | 0 | 1,649 |
Metro New York | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total pretax income | (491) | (603) |
Texas | ||
Segment Reporting Information [Line Items] | ||
Revenue | 748 | 4,187 |
Texas | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total pretax income | $ (1,936) | $ (1,320) |
Segment Reporting - Schedule _2
Segment Reporting - Schedule of Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 1,543,377 | $ 1,471,232 |
Operating Segments | Arizona | ||
Segment Reporting Information [Line Items] | ||
Total assets | 357,969 | 336,424 |
Operating Segments | California | ||
Segment Reporting Information [Line Items] | ||
Total assets | 462,041 | 479,218 |
Operating Segments | Colorado | ||
Segment Reporting Information [Line Items] | ||
Total assets | 30,329 | 27,240 |
Operating Segments | Florida | ||
Segment Reporting Information [Line Items] | ||
Total assets | 445,298 | 425,154 |
Operating Segments | Metro New York | ||
Segment Reporting Information [Line Items] | ||
Total assets | 41,665 | 42,047 |
Operating Segments | Texas | ||
Segment Reporting Information [Line Items] | ||
Total assets | 95,803 | 60,255 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 110,272 | $ 100,894 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Carrying Value | Line of credit facility | ||
Liabilities: | ||
Long-term debt | $ 355,000 | $ 315,000 |
Carrying Value | Senior notes | ||
Liabilities: | ||
Long-term debt | 250,000 | 250,000 |
Fair Value | Line of credit facility | Level 2 | ||
Liabilities: | ||
Long-term debt | 355,000 | 315,000 |
Fair Value | Senior notes | Level 2 | ||
Liabilities: | ||
Long-term debt | $ 257,500 | $ 257,500 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Compensation Expense (Details) - Restricted Stock Units and Performance Stock Units shares in Thousands | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Awards | |
Nonvested, beginning of the year (in shares) | shares | 1,488 |
Grants in period (in shares) | shares | 0 |
Vested (in shares) | shares | (156) |
Forfeited (in shares) | shares | (39) |
Nonvested, End of the year (in shares) | shares | 1,293 |
Weighted Average Grant Date Fair Value | |
Weighted average grand date fair value outstanding, beginning of the year (in dollars per share) | $ / shares | $ 8.74 |
Grant date fair value (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 9.64 |
Forfeited (in dollars per share) | $ / shares | 9.44 |
Weighted average grand date fair value outstanding, End of the year (in dollars per share) | $ / shares | $ 8.61 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Stock Option Activity (Details) - Stock Option - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Number of Shares | ||
Options outstanding, beginning balance (in shares) | 684,000 | |
Granted (in shares) | 296,000 | |
Exercised (in shares) | (72,000) | |
Forfeited (in shares) | 0 | |
Options outstanding, ending balance (in shares) | 908,000 | 684,000 |
Options exercisable (in shares) | 314,000 | |
Weighted Average Exercise Price per Share | ||
Weighted average exercise price, beginning balance (in dollars per share) | $ 8.08 | |
Granted (in dollars per share) | 12.42 | |
Exercised (in dollars per share) | 8.42 | |
Forfeited (in dollars per share) | 0 | |
Weighted average exercise price, ending balance (in dollars per share) | 9.47 | $ 8.08 |
Options exercisable (in dollars per share) | $ 8.38 | |
Weighted Average Remaining Contractual Term | ||
Weighted average remaining contractual term | 8 years 8 months 26 days | |
Options exercisable, Weighted average remaining contractual term | 8 years 1 month 9 days | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value | $ 4,593 | |
Options exercisable | $ 1,933 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restricted Stock Units and Performance Stock Units | General and Administrative Expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 0.7 | $ (0.4) |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Outstanding RSUs and PSUs (Details) - Restricted Stock Units and Performance Stock Units shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested units (in shares) | shares | 1,293 |
Remaining cost on unvested units | $ | $ 1,505 |
Remaining vesting period (in years) | 2 years 9 months |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||
Jan. 07, 2021 shares | Mar. 31, 2024 USD ($) trading_day $ / shares shares | Mar. 31, 2023 USD ($) shares | Dec. 31, 2023 $ / shares shares | Oct. 31, 2023 USD ($) | Jul. 31, 2023 USD ($) | |
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Common stock, shares issued (in shares) | 41,525,731 | 41,382,453 | ||||
Common stock, shares outstanding (in shares) | 36,129,736 | 36,520,894 | ||||
Preferred stock, shares issued (in shares) | 0 | 0 | ||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||||
Repurchase of common stock and associated tax | $ | $ 6,509 | |||||
Warrants outstanding (in shares) | 15,525,000 | |||||
Public Warrants | ||||||
Class of Stock [Line Items] | ||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 1.15 | |||||
Number of shares per warrant (in shares) | 0.1 | |||||
Amendment distribution price per per warrant (in dollars per share) | $ / shares | $ 1.85 | |||||
Payments for repurchase of warrants | $ | $ 28,700 | |||||
Warrants outstanding, term (in years) | 5 years | |||||
Minimum conversion price, per warrant (in dollars per share) | $ / shares | $ 0.01 | |||||
Written notice, period | 30 days | |||||
Stock price trigger (in dollars per share) | $ / shares | $ 18 | |||||
Threshold trading days | trading_day | 20 | |||||
Threshold consecutive trading days | trading_day | 30 | |||||
Merger Agreement | Common Class A | Level Field Capital, LLC | ||||||
Class of Stock [Line Items] | ||||||
Equity interests still held (in shares) | 1,000,000 | |||||
Merger Agreement | Earnout Shares | Level Field Capital, LLC | Landsea Holdings | ||||||
Class of Stock [Line Items] | ||||||
Equity interests transferred (in shares) | 500,000 | |||||
Share Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Additional authorized repurchase amount | $ | $ 10,000 | $ 3,300 | ||||
Additional authorized repurchase amount with no stated expiration date | $ | $ 20,000 | $ 10,000 | ||||
Repurchase of common stock and associated tax (in shares) | 534,436 | 0 | ||||
Stock repurchase program, authorized (in shares) | 0 | |||||
Repurchase of common stock and associated tax | $ | $ 6,400 | |||||
Remaining authorized repurchase amount | $ | $ 2,500 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator | ||
Net Income (Loss) | $ 190 | $ 3,218 |
Denominator | ||
Weighted average common shares outstanding - basic (in shares) | 36,279,679 | 39,997,699 |
Dilutive effect of share-based awards (in shares) | 236,703 | 119,174 |
Weighted average common shares outstanding - diluted (in shares) | 36,798,722 | 40,116,873 |
Earnings per share | ||
Basic (in dollars per share) | $ 0.01 | $ 0.08 |
Diluted (in dollars per share) | $ 0.01 | $ 0.08 |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 100,000 | 2,400,000 |
Warrant | ||
Denominator | ||
Dilutive effect of options and warrants (in shares) | 135,932 | 0 |
Options | ||
Denominator | ||
Dilutive effect of options and warrants (in shares) | 146,408 | 0 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow Information - Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Supplemental disclosures of cash flow information | ||
Interest paid, net of amounts capitalized | $ 0 | $ 0 |
Income taxes paid | 378 | 0 |
Supplemental disclosures of non-cash investing and financing activities | ||
Change in right-of-use assets for new, modified, or terminated operating leases | $ 2,553 | $ (837) |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended | ||
Apr. 30, 2024 USD ($) lot | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Revolving Credit Facility | Line of credit facility | |||
Subsequent Event [Line Items] | |||
Credit agreement, current borrowing capacity | $ 675,000,000 | $ 585,000,000 | |
Subsequent Event | Revolving Credit Facility | Line of credit facility | |||
Subsequent Event [Line Items] | |||
Credit agreement, current borrowing capacity | $ 355,000,000 | ||
Subsequent Event | Antares Acquisition, LLC | |||
Subsequent Event [Line Items] | |||
Business acquisition consideration | $ 242,600,000 | ||
Number of lots acquired | lot | 2,100 | ||
Senior Notes due 2029 | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Principal amount | $ 300,000,000 | ||
Interest rate, stated percentage | 8.875% | ||
Antares Home Debt | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Repayments of Debt | $ 43,200,000 |