LSEA - Earnings call transcript Q2 2024 | Landsea Homes Corporation

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Operator

Good day, everyone, and welcome to today's Landsea Homes Corporation Second Quarter 2024 Earnings Call. [Operator Instructions] Please note that this call may be recorded. [Operator Instructions]

It is now my pleasure to turn today's call over to Drew Mackintosh, Investor Relations. Please go ahead.

Drew Mackintosh

to Second welcome Earnings of and Call. morning, Landsea Quarter Homes XXXX Good

begins, to uncertainties, of would call the numerous that I Before call subject are like laws. Homes forward-looking to within forward-looking statements securities risks will statements note the federal meaning and the assumptions, Landsea cautions which include this that Commission. Homes not We statements. Securities risk factors the change These and risks to, any the undertake over not with uncertainties by do limited in Landsea obligation time. and forward-looking filings Exchange include, but are update its described to

financial discussed its comparable in through non-GAAP of reconciliation the be Homes' to Landsea this SEC most filings. Additionally, measure accessed can measures on and call website GAAP

Officer; Porter, President and Hosting Operating Officer; Financial Mike Chief Chief the today Chief Forsum, John call and Chris are Ho, Officer. Landsea Executive Homes'

like With turn over to call John. the that, I'd to

John Ho

everyone. And good morning Drew. Thanks, to

increase revenue second XXXX, Landsea million, which Homes quarter second delivered of an XX% strong the top of $XXX in of XXXX. growth of over generating line represented quarter the

New us adjusted XXX margin net in excellent $X.XX. guidance, an XX.X%, ahead our well share build as a totaled achieve of This income units, of gross million producing did of stated of manner. allowed and earnings timely $XX.X our closing per teams a accelerating schedules home homes closing adjusted to fully job adjusted deliveries of home and

housing fundamentals low we home markets, the markets, quarter to sales demand in net new levels quarter, at our this We XX% by of threat trends XXXX X We orders more per pace in solid are not per homes of some see XXX quarter, positive a we a the do community in month. generated continue record these competitive an did feel during on Though for the from inventory increase second than experience driven stage.

at payments important selling incentives an help monthly drive tool down. affordability concerns our and to Financing communities remain ease

continued growth and strong to was closings sales strategic weigh company scale. came the grow both little The and quarter, in margin, a incentives experienced which a demand spurred greater they in result year-over-year gross home we to our on economies quarter direct efforts expectations. of achieve of our these While in this sales our our below

for Average company. XX% we've and made the count the grow quarter community thanks to the to our up our year-over-year, we've was in done investments acquisitions markets

are and size of cost can our building growing homes. scale labor fixed our SG&A into to be quarter, strategy We that XXX down ratio go committed year-over-year in the better on the on platform, and receive basis this came we Benefits which XX%. realize and a homebuilding seen of that so terms the points better basis to leverage second materials in our

expect our are ago, a we of more than homebuilding We diversified were and we reap bigger platform benefits year our as larger the a company much and to volume increases.

and is risk cost so relationships not of our land. and we part is on our want growth the that strategy, speculating continue important capital-efficient concentrate building to important. why our long-term other to off of to upfront homes, volume with an While have manner risk-averse in realized a equally is established bankers and land That we doing capital on selling sheet. some take business partners and balance the of We efforts

some from soften. that, downside do just-in-time lots conditions also should us a while Sourcing parties to market third allow will the basis on protection us giving

to out commitment objectives is our position. strong our maintaining growth financial Balancing a

rate sheet relationships the progress great quarters, strengthening made lenders debt obtaining facility. our our with our have and improving fixed few in by last We revolving the over balance credit

to new have of a expect capital, a net with which the significant we ended down and evolution we cash quarter flow to as We respect in these the solid as of the go that actions. year. feel result our are a through ratio XX.X%, entered on access company's end more much phase continue We second now we to footing our debt-to-cap to with generate of

with of we to lifting company how with our the As I pleased forward we efforts. back of look of recent realizing integration the heavy has is to am completed, look positioned. Most the associated half acquisitions of those XXXX, our and benefits been

We it our our bring from have for is us that a achieve down today. will year goals solid backlog help where ratio and in place leverage delivery the

that our a with We buyers. in also continues to have homes our profile product high-performance resonate

As its confident I to goals. Landsea that on remain result, achieve is track a long-term

operational will Now I'd quarter. our color like provide to turn on over to who this more Mike, performance the call

Michael Forsum

good and to John, Thanks, everyone. morning

year-over-year of posted a faster quarter, delivery to cycle quarter. higher community from second benefited year's relative we as growth count and second Landsea XX% last the in times

of the Arizona Florida regional by California. and lead terms way, In contributions, followed

some in and Build inflation, availability and trade has improved keep of lower instances, brick costs by have and beginning the seeing since labor the is case may lumber conditions to coming tailwind our and operations be costs. land year, higher in we're in lumber. be resulted much margin We company significantly the running lower cost, cost believe quarters, a smoothly. stick in dynamic with better for This the much so offset decline also a it our as will of

maintain achieve stay solid by traffic the marketplace We competitive to was the in to goals cash dictated weekly track the momentum fluctuations generation stay an the rates. our being for strategic made decision delivery targets movements activity year. during effort and on sales to and in in Order mortgage with quarter,

to into to balance sheet committed projects a return capital the company's year-end. are by delevering levels, will we current from higher as position in We be redeploy

platform X.X our to behind Arizona fourth the the in per We for quarter, while of achieved in sales as the an excess activities all and Colorado, the Texas our improving operations with we us. community Florida in homes third normal per in ramping X.X Texas transitioning operations month pace and month. per quarters, paces in have California, achieved up Our see acquisition

for and has does change marginally job an this As continue home the in reported, impacted migration. has home and been have Texas not long-term these following in and from scarce is which growth in outsized a appreciation, demand benefit quarters price this several we outlook We believe these to seen of widely inventory inventory markets, markets. Florida, and occurrence increase should natural and in

of these significantly homes we consider Additionally, older, and our most are for would not homes. competition them

high-performance in Most new, looking a value modern our markets. for and as up-to-date buyers are and homes, stand superior continue out to our homes

historical our existing higher to Additionally, note recently, mortgage have also levels can trended of cannot take home below while still remain new It homebuyers home offer. that they inventory sellers important is incentives advantage that norms. well

state housing lock-in effect and Landsea's industry new the rates for remains The creating lower ideal opportunity for need mortgage take while market good homeowners positioning. feel about place, of for I homebuilders current to an new persists, in our affordable share. the of Overall, existing the

advantages ahead. smaller from access a to bright allow gives larger of In a us Our have our competitive of many builders competitors. distinct over and capital the product our quality industry many believe company short, public offerings to continue differentiate markets, unique Landsea in Homes while our private us the future ourselves as to homebuilding design and I

an on over that, more who forward-looking With our give guidance. update call provide Chris, quarter on like the and to to financial our detail I'd results this turn will

Christopher Porter

Thank you, Mike.

quarter period income per in same reported of $X.XX $X.X $XX.X the in $X.XX per net $X.XX the million reported net compared adjusted $XX We million million income to of $X.X a XXXX. share or share per last the increase or compared in share Homes Landsea quarter second second to of or for fully $X.XX or X% year. share per million

net Additionally, and credit quarter, Antares of with $X.X that including income had our the stronger associated write-offs million credit banks created in a will associated transactions force impacted associated restructuring not recur, with during $X.X $X.X in initiatives. revolving our million financing the costs million facility with in our deferred items in our cost reduction we costs that transaction with several acquisition, recast and onetime

We $X.X in booked price the also purchase quarter. accounting in million

Mike deliveries, of XXXX X% and price to our XX% $XXX,XXX second both XXX Total our home of average in revenue over million. a and guidance $XXX.X $XXX.X year, exceeding million. than As increased the produced XX% revenue we mentioned, higher XXXX, which to quarter end selling high sales was last over was XX% increase had

of larger below the our at of in low to X.X% purchase margin expected was gross just an XX.X% end guidance, our our than as price came accounting margin. gross of Our ] impact $X.X [ million or

We the of million Antares on in the balance sheet step-up value booked acquired. $XX.X the total acquisition, fair we assets reflecting

third million Antares through expect price quarter and of burn We roughly XXXX XXXX. million approximately each, the remainder in in off quarter $XX.X fourth XXXX and $X accounting and and to purchase the

off on We $X also our purchase balance million of XXXX. $XX acquisition, accounting price million Florida roughly expect and burn remaining have the for to in

on the dependent during purchase estimates are price to periods. homes accounting highly close those able are Our specific we

interest elevated quarter We the for were this in of reflecting and roughly volatility see July, be discounts X% and dropped of to as in the revenue, cost did the rates in begin an improvement Incentives treasury XX-year starting below quarter. X.X%. to continued the

last selling from XX the average quarter communities, with XX% quarter second ended up year. We the of

and count quarter, the opened Antares X communities we of closed acquisition, During XX X XX. ending communities, added total community a for from our

homes XXX quarter million the average price $XXX,XXX. selling a or of an ended for Backlog value total with $XXX.X of

second XXX our XX% quarter from costs. was basis XXXX. expense in SG&A including a million this quarter, is home improvement $X.X revenue sales acquisition-related Our the of of This point

efficiencies to we gain the operations aligned We annual approximately well believe During both positions to of reporting the range eliminated a as an next took be $X with peers for quarter, more and rate to our count XX in through as the in path XX% our reduction We structure. savings operate efforts year. of we in head million. are streamlining XX% run

a XX.X%, rate Our tax do and but XX%. quarter full we the rate in expect tax year between XX% was

balance liquidity, and million in credit equivalents in $XXX cash revolving sheet. the facility. ended under $XXX million our to We cash in quarter $XXX our with and availability Turning million

recast U.S. into the we by quarter, and revolver led strengthened the During extended America, Bank and group of of bank our Truist, the and broadened our term XXXX. that Bank completed

we $XXX is million increase feature accordion capacity with million, the Our capacity. to to $XXX an up should need

have our grid pricing pricing. We now updated XXXX. debt no maturities we to Additionally, until a

and with total Our leverage total capital. acquisition as expected to of increased debt debt quarter Antares, to the net has XX.X% ratio the at capital XX.X% ending

XX% back total stated Our of generating from on debt to within focus and to leverage our flow policies remains capital. reducing the cash acquisition

a Adjusted and the in for and fourth to gross mix consistent margins quarters, our XX% XX%. and of $XXX,XXX be in third back home between to looking Average of be X,XXX our year, X,XXX and third be new we XXX and between selling quarter deliveries between in the quarter. Now the should range between XXX with quarter in should of to and quarter, relatively XX% the both the fourth division's forward the $XXX,XXX performance. in prices the XX% anticipate half

GAAP the margins XX% improved Our quarter of remain the reflect and consistent interest accordingly. our These quarter. third and results margins expected estimate change, and could continue rates to to current gross change as in today fourth XX% with are between relatively best gross inflation, to sales as incentives overall the conditions market and in

remarks, open that With questions. and call concludes the like that, we'd for our up prepared to now

Operator

We Barclays. Instructions] [Operator first will from Bouley question with Matthew our take

Matthew Bouley

next the Just the of to next like over quarters. of plus the closings at you're kind something guiding like It looking over X,XXX quarters. pieces looks the guidance of couple X

there's homes backlog. think I XXX in around

looking spec sounded like bit couple to Texas to quarters? you're fair expecting of over presumably And sell up. the build of pick guess, I a and next So homes

production, you're thinking of given and how So starts build delivery about curious spec to a guide? pretty that you just here sort dynamic and of how market kind

John Ho

in is over it some of about and to off, this to Mike around then the it build hand sales. I'll specifics the talk start John Matt, Ho. I'll

we've in have us, For said, these prospects. think really term, invested that we've long as we strong markets

the have quarter deliver Florida communities to we that, That's for Texas and think new the really the now. have online the that with us being now. I both driving communities we half then second second number in of really selling able opened and in actively coming of with significant year. that orders demonstrated And that

of you demand strong out as can pretty effective, incentives we The there very tell. use confident feel there. that really have So been is

to the think, year. I continue will half We see in the that, second of

Mike?

Michael Forsum

Matt, Sure. great question. Yes.

by this operationally very Something we're out we we set with our their prepared here fact have and group do a a thinking this there, lot achieving individuals but that around that guidance. objectives teams running goals ourselves about here, in number forth we have strong of the

a happy we're little third quarter said, with really the already, rate. That performance being bit we're the our around into sales and

second is backlog. because actually right Our larger you backlog were than what hearing that's now quarter ending the

of terms now, have achieve. trying that we we're backlog closings over right way that the currently of of the as currently, to So XX% we're have in against against we plan the

of what be there, excited and the And sort July point. we're in contribution going the get, April. Antares that in well haven't XX% selling bit team fall through that way of our had acquisition, we're we of bump season than the excited. call we we be into had closed later the little It normally roughly XX%, that out to So particularly really the because pretty DFW was spring We through at were a anticipated. we

end about beating the we missed So having we're in out we've couple now -- us But of and to meeting the here that all being for good goals of much or last the available what pretty integrated, prospects our been online, of year. really meeting those our opportunity. some communities of fully of our seeing XXX% feeling Dallas weeks,

Matthew Bouley

helpful Perfect. Super there.

guide, kind to the of noticeable gross with at margin sticking look maybe just guide. adjusted Secondly, the

the I of XXX about QX to basis QX jump points. think

accounting, I'm into kind What of ex purchase sounded bridge? mean, But are in margin. lumber gets the fourth between in quarter have like QX. lower incentives third the the to So lot the relative gross what margin incentives, the thinking quarter? lower that here ticking it a adjusted been better to costs, I maybe pieces

John Ho

Matt, take John. that my stab add team is of can then and a other this at members on. I'll

We're really a our higher pushing have different contribution but of business. business. communities hit of been seeing through We're some that It's the combination parts the incentives, of with costs. that some the from really

that's see on deliveries exceeded deliver quarter. our the high really can So the second we or why end you in

to going have new up. communities We're opening

of Some selling Texas be expenses, some well. also with from average year. some lower have in half this and the see of communities coming those them, We'll communities significant do costs opening associated the contribution they'll through as second

as combination of a coming lower of mix those our some business really through well it's geographic costs. So that's the as

Michael Forsum

California Matt, our to market half that that's sales Sure. out BMR we're pivot of the I average again. rate the the increase Northern from a these it's as the we pushing add throughout of, BMR that units distortion contribution going over of the below be areas might Mike that also part country, in units first that and business price year going are the against of through away. comes

that through sort better I think So we'll organically go also as getting just see of it. we

incentives, now. our communities some are They particularly open excited very well, cases, of can Northern even seeing we're of Orlando Arizona actually down. are beat very going in embedded and new better raising have some that we raise also We rates right about the are locations, performing where the that thoughtfully incentives we We're less prices and taking have into still of some places prices to even offset or in to in continue in now. we precisely some numbers the and

through, happen. and good pretty make going that So working to come hard really we're that feeling again that team see to we're is

Operator

BTIG. Reichardt from Carl We'll take with next question our

Carl Reichardt

Antares particular What weren't at delivery That's was to on your XX% get me really and of beat sort and more why it you out sure in thought. a you'd But it, of you on lot so fill the I I'm drivers midpoint? outperformance? were this think that on of guide a the basis, unit got can was going a quarter, than ton. out of it Just on significant? that you guess beat you the what you

Michael Forsum

me, I Carl. Well, point the it's Mike. landed got finger on

mortgage have to proposition with targeting really, the our moved. affiliate the markets houses we working we with that that our and So needed hard really inventory get really against have, and sales in local out working been our

We that the have had of also they're a what we couple in pushing in see our competitors, us here also front within to some be larger the we down the inventory push to close is to believers because wanted as strong are to momentum. inventory business as pipe months. that of can possibly going that coming to really we available much competitors next wanted get We quarter of this

are so really, and But stepped contributions Texas. effort or And increased we by and the X his targeted They've has tremendous. we be, that leader and houses our spot team in of last from to Arizona sales sweet there, with identified we pricing incentives essentially, can doing the Megan, great. Florida over the really have incredibly. was Jeff where we X a up really is some really got have team deliver. need months, it

that's really so And came what through.

Carl Reichardt

new things. bit of help Okay. the would to One, if a year in talk And -- then about a course helpful. could really and be terms of guess, the bit X rest little maybe net of well, count with store over the openings, into the I 'XX you that little

as you the I not traffic to elasticity price that sounds can't versus like election, how you talked don't and a am note, my afford then really I'm still July afraid whatever turnover. impacting changes to the the curious, to meaning mathematical, has in July. it being side are And whatever. about this I objections is a buy, I want little in and just psychological. or curious about still or bit rates it pay from been whether really or worried hear consumers job, I'm I'm regard

could different those. questions, if So address X you very guys but

Christopher Porter

Yes, the me with count. Carl, community let start

the area in at said segment and DFW DFW on DFW. sorry, XX% we be the look you that this added -- Orlando X.X% to if XX% had and from you then add then the were impact quarter. well. the And growth or versus that at think organic I year-end, as -- saw on growth would We we organic

communities. XX-ish be put that that fourth still of kind us the in around which average would we'll think right range, I quarter in

of on continuing. would historical although definitely our pattern not this giving game the XXXX, stage I we're see then And at guidance

throughout organic average. 'XX low an double digits, in So high as that growth single-digit

Michael Forsum

part our rates I against seeing relates market Carl, other and the where on the as what is to which psychology, markets and believe the it competing are and competing competitors and rates we're coming in vibe floors -- -- there we're we're the that's follow your to today. the up in that question we're against. So that think, of essentially, I of that, narrative that out the are that's sales was, off there that which

overall now that and XX appreciating most we're value you part, sweet it's spot proposition program part, ubiquitous up to but it become some the you about X.X ] teaser of X, X This just the And in has in point fix. that through can we're most buydown is proposition kind for that through everybody products the by that being the way be HVA differentiating now gets just [ generalization, value our to that kind is go beyond in that strategy rates again that building, comes down seems ourselves same. separator of really to [ kind to. is everybody of of because see to they and get our a really rate the to it's need can that For back of the where the everybody ] and what we where big XX-year then

And that's the else against are to are whoever again, moving, The people see that there's judged can superior being a that by. clearly we're that value homes moving homes. ones them

we're that because what building like creating. we the how proud them we're value that we're and building, really So of we're

So that working. be seems to

of a we're capitulation just of out. We're be -- to bit things terms a nervous. seems in There waiting

at life There's houses is getting into it Whatever into now. the out which they're profile that change that their they're maybe back is, are along enough shrinking. to do demand the coming coming gotten bigger, we've homes. people there move, that of we to think have need purpose look I

a we go going as a we're our fear it's have of me bit, monthly fixed house a a we're what so we're go and the down you're don't we're a days the that little see to delivered going happens concern see in proposition, to to to at. -- rate going next be buy of just and like mortgage -- to long-term payment. does me that you election. that move that going we're And win lower. XX like to with payment, as a seems is to do to wait that a you that still is of up that's and can or through but hit modulate downs for or can looking about and going And I real to as that it We're going superior other going if providing is house kind the wait hitting We're lot it it you're kind And houses, just house can number. that It make doing be houses that. with long I'm

Operator

B. We'll take Alex from Riley. with question Rygiel our next

Alexander Rygiel

One time improvements a to on with go? focus of your And cycle higher does reductions. your cost business and might additional cycle drive where today? priorities Where it stand is returns in time

provide And with on see you next reduction us a the of the few cost over X that months? you developing opportunities side, can the larger

Michael Forsum

in for able A Mike. homes, ago, it's Thanks a accomplish Alex, time. to and of months of attach terms average. And we've we that really question. what on build around were we roughly in year-over-year variety year of cycle of mind X the keep our detach. We're proud reductions been

big pretty a spectrum. it's So

X.X And some we're and Florida, to in averaging of But days in in X start months. around foundation final or going Arizona today, inspection cases, XXX currently, we're a months. from

a allowing is XX%, house. almost to times, it, cycle year in well, us turns it's increase X do to per So per close which inventory almost

exciting and a in in really where terms is production to for that go thing capacity. us, for we of us terms execution want So of

in our better the because and Obviously, a then per get amount interest and with holding because to velocity, those the starts more to month, again, we're starts certain trades, which we're our week and of that keeping allowing allows commit activity per we're draws able in communities going communities. better us better getting, pricing us to and get better going, pricing, actually lots have down performance, It's going quicker. that the on more also volume to from

standpoint, as a said I I and is believe Again, this it's velocity, and super So also think earlier, really organic we demands business important. is all scale interconnected. that that from

online And rebates collectively and purchasing helpful. concessions gotten that able we're and driving also growth our exact more of business very, size our Antares bigger international the of we're so to bringing and now the we've very are as becoming business, and

around a we very home rebates and fact, that $X,XXX bottom coming well. That to line, of in now terms right about are excited goes through. right that we're are In the as

lot a growth those and said, for that be there's as So attributes things that always coming are starting motion scale again, we our of the us. forward. see we into we've with come And business in here it all are as of and it, on this of benefits and with journey to come that go kind we're

John Ho

Then, California. consolidated our is operations that The I we efficiency looking this scale, is, prepared And over in and always item one with about also what in John. our fixed add we're to our his would Mike SG&A. said costs improve remarks. Chris to Alex, this talked our

of $X With here the our annual reduction as about our consolidating force will in headquarters operations in that corporate to of as relocation company. savings a lot well result million in to the Dallas, a did We've well.

continue business. things drive returns higher a grow to to as So going to us maturity and scale all and help those are as we

Alexander Rygiel

the be a more positive, in talk Texas? maybe increase wants that that with And me sort certain cycle have demand. then bit given actually rate about might year helpful. Very that's available in the more expectation the of And communities, a of part on comment go into in improved later in as could inventory inventory inventory can But to you catalyst can we particularly think you position? that, that a you to little that

Michael Forsum

first up if they again. can follow take to. Mike this a at Sure. This is anybody stab want I'll and

cycle. But in driving of Alex, flow and then where bringing the are [ production, yearly much certain you go start they as through there we ways to the when on terms that what sell ] online story as business of in and are are terms goes communities towards even

first a quarter, now of right for that in the So coming bit what ready of for we quarter. getting is through bold are definitely quarter, third a second ready we the on WIP seeing the getting started some fourth starts and

is today, which is -- huge of XX about a days roughly that that, to with the sales XX% opposite not, generally ago, started closings kind the a if That dynamic the what is of you happening and order. portion, of of or where that the in XX closings And ago, it of today years house of our built was market decades you the business what is prior. took into place is which basically that sold sort

days. the new a really Effectively, that's between XX to happening is today XX home is that buyer the build is there. buyer is that what industry a inventory needs replacing resell into out days, that And house move

in that of So to it you transact of close kind position period have in a be have time. able to to that buildup of and inventory to have ready to be

coming you're just kind So of little through. that -- that's seeing bolts

Alexander Rygiel

that it white it at Very to the is big acquisition, helpful. least Antares' But table new probably assume you year with year as safe a kind in term, near your integrate? M&A now of the sort of next is a And opportunities? understanding of is sort of and slate sort lastly, between relates strategy of then year-end M&A to and as off M&A

John Ho

Alex, this John. is

We are a company growth-oriented. that is

opportunistic, that's was be very out so to past instrumental opportunities Pick us. and it Antares be why disciplined proven So that opportunities X Dallas for good we in to are as the is wanted this years. think for we're somewhere X, we in. us in, position these about establishing are in we've but also we

towards time, shareholder We stock continues [indiscernible] while shared are very below focused, if the as well. to remain as we said, capital on distributions At generating our cash our flow, debt. book value, distribution same -- reducing

we markets that -- our is with Florida. certainly we're as grow happy demonstration really can to as there we that expand terms in. year-over-year of in in XX% We're to areas deliveries, the think, demonstrated also are company, I growth all the that But that. of a We've well Texas like other in

and opportunistic So in that we'll nature be very select. quite

Operator

next our take with question We'll from McCanless Wedbush. Jay

James McCanless

level move looks you could your set and you maybe first right year, this what acquisitions the us all between now mix time with think up? So like product on

Michael Forsum

XX% to then more back products Mike. we'd brand that luxury have tailing through, of XXs, of in for around that XXs. are around thinking building. to want a it's We into usually us and that businesses any markets, And permeate we're coming Currently, up the product. think Jay, our Sure, subtle then move to It and our good new like future can XX% position. We really and XX% move high it's pricing up roughly half-half into a first-time to first-time helps our in be between be the homebuyer. would containable

with moving particularly are Orlando and that increasing the our online, we in Arizona Orlando in market, So Dallas activities coming in direction, team.

to over to that do Organically, you're increasing start So it's not going going acquisition it. an time. to really take percentage to see

So that's movement. the

I'm looking of XX.X% So first-time would think roughly, now, mixed is right say, rest then our and the I about current buyers right kind home are I is buyers just at of here through.

James McCanless

a Right. and what lot available? savings great, then And coming also, costs on then market you the seeing right buy up are seeing offsetting point? what at cost can guess, up talked land in I you land on perspective potentially you more And or move-up That's inflation are in lumber. Or Mike. luxury that, from this now? what lots land about the guess, following I from you

Michael Forsum

Yes.

to our get They They incentives I don't see Land everybody think see in. communities done. healthy is continue our competitors that. to building from homes they're think, unfortunately, don't our or a really of which it's understand sellers ability what keeping ability, problem. a mortgage with guess volume buydowns, us drive sell and and to continue the pace industry's taking, and So I them and in there's through pretty to

able been higher a that around with pricing the being were to associated backdrop mostly buy-downs. sticks there's against stickiness recalibrate to land some and bricks of So costs but incentives and

is is lot value development going that partially better go words, you're do to what you're that forcing be further may to where other a developed of doing profile, in So that or to as own your the into development. finding be entitled us is land

make kind offsets. to And where so those trying that's you're of

and have able work you thoughtful line to time timely those and to in That, got be a though, is a you've way. to longer be

it in deliveries. which a synchronize to is they do way what consistent our want we with with in So that

forces are finished you may into yourself you gapping it develop timely spot master that in then you getting that's open really plan And a because and to late you retail community expensive. in find communities. the market didn't and for go way, If a lots

big finished a lot between today land. entitled of raw piece an but delta and There's then out there a

in a and and best you're And you the find be have you that out position fill go possibly to be can to finished trying it in you to a hole, yourself can forced there lots. so to do whereby not with

James McCanless

this your if I'm down? leverage be Got reading you year. of land it. in the little total the longer XX% last with that you numbers term? And then, how up, It light. John, for right, looks comments play to bit a want this talked the over guess, getting do And into does I to I about more quarter, was option wanting which prepared think like [indiscernible] go where

John Ho

Yes.

I on and combination on land -- sheet it pretty XX really always it of have we've land to and we it and deliver build get been think stated need next can have and into it's house owned rapidly, the XX if we've that it balance a -- growing -- and the months. a willing

well, because control as geographies also them structure to want particularly -- grow, price to to to as continue us really as want asset-light, share we returns, to we to Texas know that, allows like which drive going to the higher too. And well, us we allows more will land We're that be drive to bankers. we're options continue in land. want too, and in California Florida and going use Beyond as

markets connected, strategy and that it they're in we particularly the think, we're a is successful will be that for us. So in highly

James McCanless

Okay. And Could of also prices implement Great. And July? what the on then second type being last guys one the the you communities. talk majority had, I in quarter? call, trended of able to increases able to that in talked you been how about in you about price then have raise the last your

Michael Forsum

Yes.

this So seen out the upon Jay, the of in getting sort between pricing X% of we've anywhere we pandemic. out. to before are X% We're continue to coming going releases that exponential be not jump depending that

steady So price specific to homes trying around it's a we're drive. that increase

dirt in ways in better increases inventory we're versus or price able that's around price out using get starts also which increases pricing to We're getting were there. we

regard. the to X% start, get kind around to a to that the towards of want customization, their that the XX% pricing have people they So higher we're in more dirt in we're do range using want to move to inventory. If if built they home able more towards

dynamic. view lot also focused. increases price premiums, gathering increases, again, just it's, other We're at not very pricing that overall marketing around targeted. So It's doing absolute ways it. of price premiums, we're the It's

Operator

next Housing our We'll take Alex Barrón question Research. from with

Alex Barrón

if joined this. maybe on given provide little thoughts versus stock you book I updated buybacks, first the I value? question. apologize the you That's share the late, answered of But a price already can bit my so

John Ho

is This John Yes. Ho.

we're we've successful we've been growing As I the and very that. doing -- mentioned, in been company,

our usually, acquisition reduce is to leverage when months, And we're same this debt. looking Our little a within than bit like an higher policies. we XX make

same the our At to stock. look to is. generation. our point the share buyback this significant it the the which to time, half flow stock We'll is year, cash value, of book program at buy opportunities to guidance back use in The second below

new we're in then in we'll to that the focus And lastly, on opening well. continue as communities markets

continue our homebuilding in So we grow can to of our economies scale platform.

Alex Barrón

deliveries, you extent? seems bit are in trying Or the quarter that that to, fourth was to number previous of the understand And and that the months? compared and the guess, can sequential what fourth sequence history. other few would quickly guys question I'm close Are get a quarter the fourth between quarter expecting you drive I for jump ton to Okay. expecting third high in next -- a orders to

John Ho

business is our how really It's Yes. growing.

I more this too, well, business think into closed as We've coming as as first year. a Mike April see Florida mentioned got that the X. from -- market. this We so Antares being quarter this in contribution our we well lot is of earlier, acquisition, that on second half

So all new business that experienced, it's growth we've organic our that and really we also communities these about opened. the but

selling increased average XX% over Our year-over-year. communities

a have now. lot storefronts we So more

momentum the we're absorption the do orders, year through of incentives, to the that use terms order strong and the on allow of we business driving see us And that's deliver in deliveries. to those increased with growth in the of second half going that,

Operator

There management no to further are back the over remarks. questions at this closing for turn time. I'll call

John Ho

joining next with call. on Thank speaking all to for our second quarter all forward quarter. We you you us look earnings

Operator

program. does today's for Thank your you conclude Thank participation. this you. And

time. any at disconnect may You

Landsea Homes (LSEA) 1 Aug 242024 Q2 Earnings call transcript