Landsea Homes Corporation

to discuss Landsee Homes financial results for the second quarter ended June 30th, 2021. Joining us today are Landsee Homes, CEO and interim CFO, John Ho, Chief Accounting Officer, Trenton Schreiner, President and COO, Michael Forsum, and the company's External Director of Investor Relations, Cody Cree. Following their remarks, we'll open the call for your questions. Before we go further, I would like to turn the call over to Mr. Cree as he reads the company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Cody, please go ahead.

Thanks, operator. This call will include 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. These statements constitute projections, forecasts, and forward-looking statements and are not guarantees of performance. Nancy Holmes 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 in the vintage estate homes acquisition, the future financial performance of the company, changes in the market for Lansi Homes products and services, and Other expansion plans and opportunities. These four looking statements are based on information available as of the date of this call in our management's current expectations forecast 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 four looking statements. These risks and uncertainties include, but are not limited to, the risk factors described by Lansi Homes in its filings with the Securities and Exchange Commission. These factors and those identified elsewhere in this conference call, 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 in the vintage estate homes 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 NASDAQ home 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 Land, Sea, Homes products or services or to profitably expand into new markets, the possibility that the company may be adversely affected by other economic, business, and or competitive factors, and other risks and uncertainties indicated in Land, Sea, Homes SEC reports or documents filed or to be filed with the SEC by Land, Sea, 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. I would also like to remind everyone that this call will be available for replay starting at 1 p.m. Eastern Time today. to the same time on August 13th, 2021. A webcast replay will also be available via the link provided in today's press release, as well as on the company's website at lancyhomes.com. In addition, a supplemental earnings presentation has been posted on the investor relations portion of the site that we encourage you to view. Now, I'd like to turn the call over to the CEO of Lancy Homes, John Ho. John, over to you.

Thank you, Cody, and good morning, everyone. We are pleased that you were able to join us on today's call. First, I will provide a high-level overview of our second quarter 2021 results and highlights. After this, I will hand it over to Trent Schreiner, our Chief Accounting Officer, to discuss our financials in more detail. And then Mike Forsum, our President and COO, will provide updates on the integration of Vintage Estate Homes into Lansing Homes. Before we begin, I would like to take a moment to recognize our commemorative performance during the second quarter as a continued strength across the housing market led to another quarter of strong results. Not only did our total home sales increase 152% from the prior year, with 125% organic growth, but our backlog expanded to a record 1,197 homes, and our ASP continued to rise because of our efforts to capitalize on our current demand-driven pricing power. This resulted in a 530 basis point increase in our adjusted home sales gross margin and significant increases in our profitability from the prior year. I cannot be proud of the hard work that went into these results, and I would like to highlight several key accomplishments that we've achieved since our last call. Starting on the West Coast, we disclosed the acquisition of 182 home sites at the Alameda Marina Community in California, just only 20 miles out from Oakland and San Francisco. This will result in the construction of homes ranging from 1,462 square feet to 2,689 in participation with the renovation initiative of the Alameda Marina. Sales are expected to commence in the summer of 2022 with roughly 15% of the homes created by Lansing to be offered under the county's affordable housing program. Moving south, we announced a number of new acquisitions to expand our presence in the greater Phoenix, Arizona market. In May, we announced 193 new home sites at North Copper Canyon in Surprise, Arizona. Lansi has seen tremendous success in the community with 697 home sales since 2018. Buyers appreciate the community for its modern, spacious, and high-quality homes at attainable price points and its convenient location just 45 minutes from downtown and Sky Harbor International Airport. Construction is underway today, and we expect sales to come online in spring of 2022. In June, we closed an additional 863 home sites in the communities of Bent Ridge and Citrus Park. Bent Ridge is located in the heart of Buckeye, Arizona, and is nearby our highly successful Sundance community, which only has a few available home sites remaining. The acquisition gives us a chance to offer a second collection of plants with a larger square footage while providing a great opportunity to continue our presence within a community that we truly enjoy. Meanwhile, our home sites in Citrus Park, located in Goodyear, Arizona, would feature a blend of court-style traditional single-family homes in a community that offers residents a rural feel with resort-style amenities, just 30 minutes from downtown Phoenix. Construction on both home sites is set to begin next year, with sales expected to commence in fall of 2022. Finishing with the East Coast, shortly after entering the Florida market in a big way, with the closing of our $54.6 million acquisition of Vintage State Homes, We announced the acquisition of 108 new home sites at Eagle Crest in Grant Vicaria, Florida. The community will offer single-family homes on oversight lots ranging from half to one acre, with a backdrop featuring the beautiful waters and wildlife of its conservation. With a location that is minutes from the best shopping, dining, beaches, and parks, as well as prominent employers such as L3, Harris, Northrop Grumman, and Burr Air, We are pleased with the prospects Eagle Crest will offer its future residents. Florida is a very important market to our strategy at Lansing, and it is imperative that we continue to deliver on our execution. The recent appointment of William Forge to serve as Vice President of Home Building Operations for our Florida division represents a meaningful measure to fulfill on this objective. Bringing prior experience from Toll Brothers and Richmond American Homes, Philly was an important part of our M&A team during our purchase of vintage estate homes. and brings vital knowledge to the role that will help us grow our operations in Florida. Most recently, he served as Director of Corporate Home Building Operations, where he played a key role in the implementation of the company's high-performance homes, which included home automation, energy efficiency, and sustainability features. Finally, I'd like to take a moment to call it a major milestone for Lansi as a public company. Our inclusion in the Russell 3000 Intex that occurred at the end of June This inclusion expands the reach of our exciting story to a wider swath of investors. Timing of this development could not have been more opportune, as we firmly believe we are in the midst of one of the most defining periods of the company's history. Our business has continued to experience accelerating momentum, aided by the tailwinds of the housing market and the accretive benefits resulting from our acquisition of vintage estate homes. The operational execution of our team has helped us sustain our organic sales growth through challenges in our supply chain, while expanding our gross margins and accruing the largest backlog the company has ever seen. We are once again increasing our full-year outlook, which Trent will expand upon shortly, and we continue to look forward to all we can achieve in the coming quarters as we strive to deliver value for our shareholders. With that, I'll now turn the call over to Trent Treiner, our Chief Accounting Officer. Trent, over to you.