Landsea Homes Corporation

Good day. Thank you for standing by and welcome to the Land, Sea, Homes third quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. If anyone should require assistance during the conference, please press star zero on your telephone. As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Drew McIntosh, Sir, you may begin.

Welcome to Lancey Holmes' third quarter earnings call. Before the call begins, I would like to note that this call will include forward-looking statements within the meaning of the federal securities laws. Lancey Holmes cautions that forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time. These risks and uncertainties include, but are not limited to, the risk factors described by Lancey Homes in its filings with the Securities and Exchange Commission. 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. Additionally, reconciliations of non-GAAP financial measures discussed on this call, the most comparable GAAP measures can be accessed through Lancey Holmes' website and its SEC filings. Hosting the call today are John Ho, Lancey's Chief Executive Officer, Mike Forsum, Chief Operating Officer, and Trent Schreiner, Chief Accounting Officer. With that, I'd like to turn the call over to John.

Good morning, and thank you for joining us today as we go over our results for the third quarter of 2021 and provide an update on our company's outlook. Lancy Homes made progress on a number of fronts in the third quarter of 2021 as we remained on track to generate approximately $1 billion in total revenues for the year, greatly enhance our access to capital, and continue to lay the foundation for our company's rapid growth. The Vintage Estate acquisition has been progressing nicely, and we have been aggressive in transitioning their operations into a more production builder-type mold, while expanding their existing market presence with several new land acquisitions. We continue to see strong demand for Lansi's differentiated product, which features the latest in new home performance and technology at an affordable price. These positives from the quarter, along with the company's record quarter-ending backlog give us optimism about the remainder of the year and our outlook for 2022. While there is a lot to be excited about in terms of our company's future, today's operating environment continues to be challenged by supply chain issues that are impacting the entire industry. These issues extended our construction cycle times during the quarter beyond a level that we are comfortable with, compelling us to deter our sales efforts in many of our communities, particularly in Arizona. Our main focus as a home builder has always been to do right by the customer, and we felt that stretching out an already robust backlog of homes would not be in the best interest of our existing customers or new ones. We have been upfront and transparent with our customers and backlog about issues we are facing, and we believe this approach helped keep our cancellation rate during the quarter at a manageable 10.4%. Despite these operational challenges, we continue to see great growth opportunities for our driven by strong industry fundamentals, favorable long-term trends in our markets, and our focus on the more affordable segments of the market. We are rapidly expanding our presence in high-growth markets in Florida, Texas, Arizona, and California, and increased our quarter ending loss count by 46% as compared to the end of 2020. We have established a successful track record of scaling our operations quickly through a combination of organic growth and acquisitions and believe this trend can continue. Our ability to deliver on growth aspirations got a boost in the third quarter with establishment of a $500 million unsecured revolving credit facility with an accordion feature that permits increases in borrowing capacity up to an additional $350 million. This new facility replaces the cumbersome project financing and other capital sources that put us at a competitive disadvantage with other builders. Thanks to the commitment from our new lending partners, Western Alliance Bank, Bank of America, and the rest of the syndicate, we now have the available capital to act more quickly on opportunities when they arise and compete more effectively for land deals at a lower cost of capital. With that, I'd like to turn the call over to Mike, who will provide more detail on our home building operations. Mike?