Landsea Homes saw a 352% increase in new-home orders in the fourth quarter, as market conditions improved and buyers started to venture out. It said it earned $12.5 million in the quarter, or 33 cents a share.

“2023 was a pivotal year for Landsea Homes, as many of the actions we took during the year will have a lasting impact on our company,” CEO John Ho said in a release. “From entering new markets to executing several capital markets transactions, Landsea Homes laid the foundation for continued growth and increased stability for our shareholder base and capital structure.”

Landsea’s full-year profit was $29.2 million, or 75 cents a share.

Earlier this year, Landsea acquired Dallas-based Antares Homes, which has 19 active selling communities and 2,000 lots.

“We believe Antares fits perfectly within our organization, both from a pricing and product standpoint, and gives us a great platform from which to grow our presence in this high-growth market,” Ho said. “We look forward to the Antares team joining the Landsea family upon the closing of the deal.”

Fourth Quarter Report

Net new-home orders increased to 398 homes with a dollar value of $218.9 million, an average sales price of $550,000, and a monthly absorption rate of 2.2 sales per active community in the fourth quarter.

This compares with 88 homes with a dollar value of $57.5 million, an average sales price of $653,000, and a monthly absorption rate of 0.5 sales per active community in the prior-year period. The cancellation rate was 13% compared with 72% in fourth quarter 2022.

The 7% decrease in total revenue to $397.6 million compared with $426 million in the fourth quarter of 2022 was primarily driven by increased financing incentives and geographic mix, as the New York and Texas operations delivered $29.1 million in the fourth quarter of 2022.

The company ended 2023 with 11,176 lots owned and controlled, representing approximately five years of supply based on 2023 home closings. Forty-one percent of lots were owned, and 59% were controlled through contracts and option agreements.

“Landsea Homes is well positioned to take advantage of the favorable home building fundamentals, thanks to our strong market positioning and the appeal of our High Performance Homes,” Ho said. “In addition, our asset-light land portfolio, improving asset turns, and entry-level focus have our company primed to generate improving returns on capital. As a result, I am very optimistic about the future of Landsea Homes.”

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