Landsea Homes Corp (LSEA, Financial) released its earnings report for the third quarter ended September 30, 2023, on November 2, 2023. The company reported a net income of $8.6 million, or $0.22 per share, a decrease from the $20 million, or $0.49 per share, reported for the same period in the previous year. The company's total revenue for the quarter was $277.3 million.
Financial Performance
The company's pretax income for the quarter was $12.5 million, down from the $25.3 million reported for the same period in the previous year. Adjusted net income, a non-GAAP measure, was $11.7 million or $0.30 per share, down from the $27.6 million, or $0.69 per share, reported for the previous year period.
Management Commentary
The new home market continued to show impressive resiliency in the face of rising mortgage rates in the third quarter of 2023, thanks to a motivated buyer population and a lack of existing home supply", said John Ho, Landsea Homes’ Chief Executive Officer. "We are pleased with this quarter’s results and feel we are in a great position to end 2023 on a strong note."
Financial Tables
Landsea Homes Corp (LSEA, Financial) reported a decrease in total revenue, primarily driven by a 17.5% decrease in homes closed and a 4.2% decrease in average sales price. New homes delivered totaled 448 homes at an average sales price of $576,000 compared to 543 homes delivered at an average sales price of $601,000 in the third quarter of 2022. The company's home sales gross margin was 18.7% compared to 20.9% in the prior year period.
Company Performance Analysis
Despite the decrease in net income and total revenue, Landsea Homes Corp (LSEA, Financial) saw a significant increase in net new home orders, with an 89% year-over-year increase. This suggests a strong demand for the company's homes, which could potentially lead to increased revenue in the future. The company also repurchased 1,392,000 shares of common stock for $13.7 million, indicating a strong financial position and confidence in the company's future performance.
Explore the complete 8-K earnings release (here) from Landsea Homes Corp for further details.
