- **Topline Growth**: 2% YoY revenue rise driven by 27% delivery increase, despite 20% ASP decline. 
- **Presale Strategy Payoff**: 67% Q1 deliveries sold presold vs. 50% target, with 20%+ margin on lot upgrades. 
- **Regional Strength**: Florida (+52% deliveries), Texas (+126 units) lead growth, offsetting California mix shift. 
- **Margin Challenges**: 9.6% incentives weigh on gross margin (13.5%), but adjusted margin stable at 20%. 
- **Balance Sheet Health**: $256M liquidity, 52.1% debt/cap ratio, with disciplined land acquisition to offset cost pressures.

**【CEO Summary Section】**
- **Q1 2025 Financial Overview**: Net loss of $7.3 million ($0.20 per share), with home sales revenue up 2% YoY on 27% higher deliveries. Average closing prices (ASPs) declined 20% due to mix shift to lower-priced Florida/Texas markets and elevated incentives (9% of ASPs). 
- **Demand Elasticity**: Net orders +11% YoY, driven by 3.0 homes sold/month/communities. Strategy leans toward pace over price, with 67% Q1 deliveries sold presold vs. 50% target. 
- **Strategic Shifts**: 
  - Reducing spec inventory (67% Q1 deliveries were specs) to 50-50 split with presales for higher margins. 
  - Emphasizing differentiated High Performance Homes to attract price-sensitive buyers. 
  - Balancing affordability through incentives while maintaining sales activity. 

**【COO Operational Update】**
- **Regional Performance**: Florida led with 52% delivery growth, Texas contributed 20% of deliveries. ASPs rose in FL/TX, declined slightly in AZ. 
- **Build Efficiency**: Pre-COVID build times enable faster backlog conversion. Presales allow 20%+ margin on lot premiums/upgrades. 
- **Market Dynamics**: Uneven demand with traffic offset by buyer hesitancy. Incentives (9.6% of gross margin) and pricing adjustments maintain conversions. 
- **Cost Pressures**: Lot cost inflation persists, but renegotiated takedowns provide some relief. 

**【CFO Financial Details】**
- **Gross Margin**: 13.5% (pre-impairment), with $1.5M impairment in DFW. Adjusted gross margin 20%. 
- **Expenses**: SG&A 17% of revenue (+180bps YoY due to marketing). G&A flat YoY at $731K. 
- **Liquidity**: $256M total liquidity ($52.3M cash, $204M revolver). Debt/cap ratio 52.1%, net debt/cap 48.3%. 
- **Outlook**: Incentives expected to remain elevated (7-9% of ASPs) through 2025, with gradual margin improvement from presales mix shift.

Landsea Homes (LSEA)-13 May 25-2025 Q1 Earnings call transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

LSEA(Delisted)

LSEA fundamentals

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