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Earnings Presentation February 2025
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2 Disclaimer Forward-Looking Statements Certain statements in this presentation may constitute “forward-looking statements” within the meaning of the federal securities laws, including, but not limited to, our expectations for future financial performance, business strategies or expectations for our business, including as they relate to anticipated effects of the business combination pursuant to that Agreement and Plan of Merger (the “Merger Agreement”) by and among Landsea Homes Corporation (formerly LF Capital Acquisition Corp. or “LF Capital” and now the “Company” or “Landsea Homes”), a Delaware corporation, LFCA Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of LF Capital, Landsea Holdings Corporation, a Delaware corporation (“Landsea Holdings”), and Landsea Homes Incorporated, a Delaware corporation and wholly-owned subsidiary of Landsea Holdings, dated as of August 31, 2020 (the “Business Combination”). These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Landsea Homes cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Words such as “may,” “can,” “should,” “will,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “target,” “look” or similar expressions may identify forward-looking statements. Specifically, forward-looking statements may include statements relating to: the benefits of the Business Combination and the acquisition of Vintage Estate Homes (the “Acquisition”); the future financial performance of the Company; changes in the market for Landsea Homes’ products and services; and other expansion plans and opportunities. These forward-looking statements are based on information available as of the date of this presentation and our management’s current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but not are limited to, the risk factors described by Landsea Homes in its filings with the Securities and Exchange Commission (“SEC”). These risk factors and those identified elsewhere in this press release, among others, could cause actual results to differ materially from historical performance and include, but are not limited to: the ability to recognize the anticipated benefits of the Business Combination and the Acquisition, which may be affected by, among other things, competition, the ability to integrate the combined business and the acquired business, and the ability of the combined business and the acquired business to grow and manage growth profitably; costs related to the Business Combination; the ability to maintain the listing of Landsea Homes’ securities on Nasdaq; the outcome of any legal proceedings that may be instituted against the Company; changes in applicable laws or regulations; the inability to launch new Landsea Homes products or services or to profitably expand into new markets; the possibility that Landsea Homes may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties indicated in Landsea Homes’ SEC reports or documents filed or to be filed with the SEC by Landsea Homes. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward-looking statements in deciding whether to invest in our securities. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Non-GAAP Financial Measures This presentation contains certain financial measures that are not calculated in accordance with accounting principles generally accepted in the United States (“GAAP”). Any non-GAAP financial measures and other non-GAAP financial information used in this presentation are in addition to, and should not be considered superior to, or a substitute for, financial measures prepared in accordance with GAAP. Non-GAAP financial measures and other non- GAAP financial information is subject to significant inherent limitations. The non-GAAP financial measures Landsea Homes uses in this presentation include net debt to net capital, adjusted home sales gross margin, adjusted net income, EBITDA and adjusted EBITDA. We believe that the disclosure of these non-GAAP financial measures presents additional information which, when read in conjunction with our consolidated financial statements prepared in accordance with GAAP, facilitates the analysis of our results of operations. These non-GAAP financial measures are not based on any comprehensive or standard set of accounting rules or principles. Accordingly, the calculation of our non-GAAP financial measures may differ from the definitions of non-GAAP financial measures other companies may use with the same or similar names. This limits, to some extent, the usefulness of this information for comparison purposes. Non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with our financial results as determined in accordance with GAAP. This information should only be used to evaluate our financial results in conjunction with the corresponding GAAP information. Accordingly, we qualify our use of non-GAAP financial measures whenever non-GAAP financial measures are presented. A reconciliation of the non-GAAP financial measures used in this presentation to the most directly comparable GAAP measures is provided in the Appendix to this presentation.
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3 Today’s Presenters John Ho Chief Executive Officer Michael Forsum President and Chief Operating Officer Chris Porter Chief Financial Officer
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BUSINESS REVIEW 4 19
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5 Financial Highlights 4Q 24 QTD Highlights • Total Revenue of $486.7M up 22% from 4Q 2023 driven by a 41% increase in deliveries to 937, with an Average Sales Price of $481k • Net New Home orders of 636 for a total value of $289.8M, a 60% increase in volume and 32% increase in dollar value from 4Q 2023 • Adjusted EBITDA of $38.6M, a 4% decrease from 4Q 2023 • Pre-Tax Income of $6.5M a 65% decrease from 4Q 2023 • Net Income attributable to Landsea Homes of $3.0M or $0.08 per diluted share • Adjusted Net Income attributable to Landsea Homes of $9.1M or $0.25 per diluted share • Quarter-end homes in backlog of 390 for a total of $212.4M • Book Value per share of $18.37 Note: Adjusted EBITDA and Adjusted Net Income are non-GAAP metrics. Refer to the Appendix for reconciliation thereof to the most directly comparable GAAP measure. 2024 Highlights • Total Revenue of $1,550.3M up 28% from 2023 driven by a 33% increase in deliveries to 2,831, with an Average Sales Price of $525k • Net New Home orders of 2,634 for a total value of $1,328.6M, a 35% increase in volume and 20% increase in dollar value from 2023 • Adjusted EBITDA of $136.2M, a 21% decrease from 2023 • Pre-Tax Income of $26.7M a 40% decrease from 2023 • Net Income attributable to Landsea Homes of $17.2M or $0.47 per diluted share • Adjusted Net Income attributable to Landsea Homes of $41.7M or $1.14 per diluted share
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6 Colorado • Markets: - North Denver • Lots Owned or Controlled: ~500 (56% Controlled) • 4Q24 ASP $441k Source: Builder Magazine Note: Excludes NY Metro Dallas/Ft. Worth California • Markets: - San Francisco Bay Area - Inland Empire - Orange County • Lots Owned or Controlled: ~1,600 (58% Controlled) • 4Q24 ASP $761k Texas • Markets: - Austin - Dallas/Ft. Worth (“DFW”) • Lots Owned or Controlled: ~3,100 (58% Controlled) • 4Q24 ASP $388k Florida • Markets: - Orlando Metro Area - Palm Bay • Lots Owned or Controlled: ~2,900 (51% Controlled) • 4Q24 ASP $467k Arizona • Markets: - Phoenix Metro Area • Lots Owned or Controlled: ~2,800 (57% Controlled) • 4Q24 ASP $437k Diversified Portfolio In Strong Core Markets
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7 Diversified Revenue Base – 4Q 2024 QTD California 13% Arizona 27% Florida 36% Texas 20% Colorado 4% Home Deliveries By Region 937 Total Deliveries Notes: (1) Excludes New York Metro $93.6M $120.8M $182.6M $73.4M $16.3M 19% 25% 38% 15% 3% California Arizona Florida Texas Colorado Total Revenue By Region 683 1,210 1,414 1,310 204 938 1,633 1,487 1,805 259 California Arizona Florida Texas Colorado Lots Owned and Controlled1 11.0 18.0 27.0 19.7 3.0 California Arizona Florida Texas Colorado Average Active Selling Communities by Region (QTD) Consolidated Total Revenue: $486.7M 4Q24 QTD 4,821 Lots Owned; 6,122 Lots Controlled; 10,943 Total Lots at Dec241 78.7 Average Active Selling Communities 4Q24 QTD
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8 Diversified Revenue Base – Historical (1) The average selling communities calculation for Colorado in 2023 is based on three months, for the time subsequent to the acqui sition of Richfield in October 2023. Our New York segment currently includes one project with only one residential unit and a retail space remaining to sell and deliver, therefore we do not consider it to have any active selling communities . Average selling communities calculations for Florida and Texas in 2021 are based on eight months, for the time subsequent to the acquisition of Vintage in May 2021. $1,023M $1,446M $1,210M $1,550M FY21 FY22 FY23 FY24 Total Revenue By Region California Arizona Florida Texas Colorado New York 32.0 52.7 58.8 77.2 FY21 FY22 FY23 FY24 Avg Active Selling Communities by Region (Annual)1 California Arizona Florida Texas Colorado New York 5,148 5,283 4,568 4,822 3,592 6,310 6,608 6,122 8,740 (59% owned) 11,593 (46% owned) 11,176 (41% owned) 10,944 (44% owned) FY21 FY22 FY23 FY24 Lots Owned and Controlled 1,640 2,370 2,123 2,831 FY21 FY22 FY23 FY24 Home Deliveries by Region California Arizona Florida Texas Colorado New York
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9 ASP ($ 000s) Deliveries (QTD) Backlog 4Q-23 $572 $649 4Q-24 $481 $545 Home Sales Revenue & Backlog Value ($ 000s) HS Rev (QTD) Backlog 4Q-23 $379,668 $335,627 4Q-24 $450,554 $212,396 Key Operating Metrics – 4Q24 YoY 107 194 197 219 217 129 187 162 137 161 127 110 173 209 230 247 216 297 221 214 191 244 216 176 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec New Home Orders (units) 2023 2024 88 126 258 173 174 192 96 168 184 159 202 303 105 131 269 184 203 373 158 196 275 185 282 470 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Home Deliveries (units) 2023 2024 689 757 696 742 785 722 813 807 760 785 710 517 585 663 624 755 768 694 757 775 691 750 684 390 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Backlog (units) 2023 2024 Cancellation Rate 4Q-23 13.4% 4Q-24 14.1%
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10 The High Performance Homes program provides homebuyers with a four-tiered approach that includes home automation, sustainability, energy savings and healthy lifestyle Designed to provide a superior living environment, the program is aimed at: • Enhancing a home’s comfort • Improving indoor air quality • Delivering home automation solutions through a strategic partnership with a leading technology company • Reducing energy costs • Lessening the consumption of the Earth’s precious resources High Performance Homes – Our Key Differentiator High Performance Homes Program Features of High Performance Homes Home Automation Live the Connected Life • Meshnet wireless internet • Apple TV included® • ecobee Video Doorbell Sustainability To Live Lightly on the Land • Construction material waste reduced (plaster, drywall, plumbing) • Architecturally designed to provide a lighter environmental imprint • WaterSense Certification Energy Savings Modern Living Made Smarter • Enhanced insulation • Tankless water heater • LED & ENERGY STAR® features to use less energy • Energy Efficient Windows Healthy Lifestyle For Your Well-Being • Introduced Healthy Lifestyle features in 2021 • REME HALO® whole home and building air purifier • Low volatile organic compounds (VOC) paint
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11 Proven Acquisition Playbook Disciplined Acquisition Strategy Demonstrated Three-Step Approach Roll-up strategy of undercapitalized players that have built their businesses up as far as they can with local capital and / or owners looking to sell to a player that will take care of its employees Utilize the same three-step, principled approach developed during our successful expansion in California Targeting the “Right Markets” Prudent approach of market selection based on macro trends and Company expertise Land Acquisitions Acquire strategically positioned land in new markets that follow demographic patterns Attractive Homebuilder Profile Potential acquisition is not only in a high- value homebuilding market, but also has a history and profile aligned to LSEA’s core strategy Build Relationships Develop relationships with builders, partners, and sub-contractors to optimize our process Experienced Management Team Disciplined review of the in-place team as well as LSEA’s regional team to ensure deep experience in the regions we enter Retain and Scale Expertise Retain employees to leverage expertise and deepen institutional knowledge across geographies 1 2 3
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FINANCIAL HIGHLIGHTS
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13 4Q24 4Q23 % Change Home Sales Revenues $451M $380M 19% Deliveries (units) 937 664 41% ASP of Home Deliveries $481k $572k (16%) Net Orders (units) 636 398 60% Net Order Value $290M $219M 32% Backlog (units) 390 517 (25%) Backlog Value $212M $336M (37%) Ending Active Community Count 76 61 25% Avg. Selling Community Count 79 60 32% Monthly Absorption Rate 2.7 2.2 23% Starts 583 494 18% Income Statement 4Q 2024 QTD Highlights • Total Revenues were $486.7M • Home sales gross profit margin was 12.5%, compared to prior year fourth quarter of 15.9%. Excluding interest, purchase price amortization, and inventory impairments, adjusted home sales gross profit margin was 18.4%. • SG&A expenses at 12.5% of home sales revenue • Net income attributable to Landsea Homes Corporation was $3.0M or $0.08 per diluted share • 390 homes in backlog with a value of $212M and an average sales price of $545k. • Adjusted Net Income of $9.1M Note: Adjusted home sales gross margin and Adjusted Net Income are non- GAAP metrics. Refer to the Appendix for reconciliation thereof to the most directly comparable GAAP measure
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14 FY24 FY23 % Change Home Sales Revenues $1,487M $1,170M 27% Deliveries (units) 2,831 2,123 33% ASP of Home Deliveries $525k $551k (5%) Net Orders (units) 2,634 1,947 35% Net Order Value $1,329M $1,111M 20% Backlog (units) 390 517 (25%) Backlog Value $212M $336M (37%) Ending Active Community Count 76 61 25% Avg. Selling Community Count 77 59 31% Monthly Absorption Rate 2.8 2.8 - Starts 2,881 2,012 43% Income Statement FY24 Highlights • Total Revenues were $1,550.3M • Home sales gross profit margin was 14.7%, compared to prior year of 17.3%. Excluding interest, purchase price amortization, and inventory impairments, adjusted home sales gross profit margin was 20.3%. • SG&A expenses at 13.5% of home sales revenue • Net income attributable to Landsea Homes Corporation was $17.2M or $0.47 per diluted share • 390 homes in backlog with a value of $212M and an average sales price of $545k. • Adjusted Net Income of $41.7M Note: Adjusted home sales gross margin and Adjusted Net Income are non- GAAP metrics. Refer to the Appendix for reconciliation thereof to the most directly comparable GAAP measure
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15 $ in millions Dec24 Dec23 Cash and cash equivalents $57.2 $168.6 Real estate inventories $1,339.1 $1,121.7 Goodwill $155.6 $68.6 Other assets $149.4 $112.2 Total Assets $1,701.3 $1,471.2 Accounts payable & accrued expenses $299.0 $238.2 Due to affiliates $0.9 $0.9 Notes and other debts payable, net $725.4 $543.8 Total Liabilities $1,025.2 $782.9 Stockholders' equity $667.2 $652.9 Noncontrolling interest $8.9 $35.5 Total Equity $676.1 $688.4 Total Liabilities and Equity $1,701.3 $1,471.2 Debt to Total Capital 51.8% 44.1% Net Debt to Total Capital 47.7% 30.4% 4Q 2024 Highlights • Debt to Total Capital ratio of 51.8%, consistent with 3Q 2024 • Net Debt to Total Capital of 47.7%, 150 bps improvement from 3Q 2024 • Total liquidity of $241.8M ($57.2M cash and equivalents and held in escrow, plus $184.5M availability under revolver) • $18.37 Book Value Per Share(1); 2.8% increase over 4Q 2023 • $14.07 Tangible Book Value per Share(2); 12.1% decrease over 4Q 2023 • Debt as of year-end of $725.4M is comprised of $749.0M of outstanding debt, net of $23.6M of deferred financing costs Consolidated Balance Sheet Note: Net debt to total capital is a non-GAAP metric. Refer to the appendix for additional information regarding this non-GAAP measure and a reconciliation thereof to the most directly comparable GAAP measure. (1) Book value is total stockholders' equity divided by total shares outstanding. (2) Tangible book value is total stockholders’ equity minus goodwill and certain intangible assets acquired from acquisitions div ided by the total shares outstanding. $13.40 $16.04 $17.88 $18.37 Dec21 Dec22 Dec23 Dec24 Book Value Per Share
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APPENDIX Reconciliation of Adjusted Metrics
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17 Reconciliations of Adjusted Metrics – Net Debt to Total Capital (Non -GAAP) In this presentation, we include certain non-GAAP financial measures, including net debt to total capital, adjusted home sales gross margin, adjusted net income, EBITDA and adjusted EBITDA. These non-GAAP financial measures are presented to provide investors additional insights to facilitate the analysis of our results of operations. These non-GAAP financial measures are not in accordance with, or an alternative for, GAAP and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive or standard set of accounting rules or principles. Accordingly, the calculation of our non-GAAP financial measures may differ from the definitions of non-GAAP financial measures other companies may use with the same or similar names. This limits, to some extent, the usefulness of this information for comparison purposes. Non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with our financial results as determined in accordance with GAAP . This information should only be used to evaluate our financial results in conjunction with the corresponding GAAP information. Accordingly, we qualify our use of non-GAAP financial measures whenever non-GAAP financial measures are presented.
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18 (Non -GAAP) Reconciliations of Adjusted Metrics – Adjusted Home Sales Gross Margin
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19 Reconciliations of Adjusted Metrics – Adjusted Net Income (Non -GAAP)
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20 Reconciliations of Adjusted Metrics – EBITDA and Adjusted EBITDA (Non -GAAP)