Landsea Homes Corporation

Greetings. Welcome to the Lancey Homes Corporation fourth quarter 2023 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Drew McIntosh. Thank you. You may begin.

Good morning, and welcome to Lansing Homes' fourth quarter and full year 2023 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. Lansing Homes 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 Lansing Homes and 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 to the most comparable GAAP measures can be accessed at the Lansi Homes website and in its SEC filings. Hosting the call today are John Ho Lansi's Chief Executive Officer, Mike Forsum, President and Chief Operating Officer, and Chris Porter, Chief Financial 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 fourth quarter, provide a recap of our accomplishments in 2023, discuss the current state of our home building operations, and our outlook. Fancy Homes delivered another quarter of strong profitability in the fourth quarter, generating net income of $12.5 million, or 33 cents per diluted share. We came in above our stated guidance for full year deliveries, thanks to a strong fourth quarter push by our construction teams to get homes closed by year end. We also experienced a significant year-over-year improvement in order activity, and this momentum has carried into the new year, with orders up 28% for the first eight weeks of 2024, compared to the same period in 2023. I realize that most of you on this call are more focused on our company's future performance rather than our past accomplishments. I think it's worth reviewing some of our achievements from 2023 as they provide the foundation of what's to come for our company. In February, we launched Lansi Title, which along with Lansi Mortgage, allows us to offer our homebuyers a comprehensive suite of financial services when purchasing their home. It also enables us to maximize efficiencies throughout the home buying experience by controlling the quality and timing of the title and closing process. Having a broad array of financial services to offer to buyers is crucial during this era of mortgage rate uncertainty, and getting a land seat title up and running was a key component of this. In March, we announced the relocation of our company's headquarters to Dallas. a move that put us in a better position logistically to manage our expanding home building footprint and that signaled our intention to grow Lansing's presence in the state of Texas. We followed through on this intent earlier this year by entering into a definitive agreement to buy Dallas-Fort Worth-based and terrorist homes, which will give us 19 actively selling communities and a strong pipeline of almost 3,000 lots in the market. We expect Anteros will be a transformative transaction for our company and credit our relocation to the area as being an important factor in sourcing and closing this deal. In the summer, we completed a series of capital markets transactions that greatly benefited our company. We executed two secondary share offerings on behalf of large shareholders, one in June and one in August, that reduced the level of concentration in our shareholder base increase the flow of our stock. Both offerings were well received by the market, and we successfully placed the shares with a stable base of traditional institutional investors. In July, we entered into a note purchase agreement with various investors, including BlackRock and Angela Gordon, that provided for the private placement of 250 million aggregate principal amount of senior notes due in 2028. This transaction provided us with much-needed capital to pursue our growth initiatives while limiting our exposure to the fluctuation in interest rates. In October, we established a presence in Colorado for the acquisition of certain assets of Richfield Homes. Colorado has been one of our top new market targets for some time, and to acquire a successful home building operation with a solid management team was a real win for us. Throughout the year, we also allocated a portion of our capital to buying back stock. In total, we repurchased roughly 3.6 million shares at an average price $9.46, thereby reducing our shares outstanding by 9% as compared to the end of 2022. All these actions we took in 2023 were aligned with our goals of rapidly scaling our operations in a profitable manner. establishing a path to better returns and creating value for all our shareholders. Our year-end book value per share was $17.88 and our tangible book value per share was $16, an increase of 11.4% from a year ago. We believe we are in a good position to take advantage of the positive housing fundamentals we see in our market today. I am proud of what we achieved in 2023 and believe we are on a path to greater success in the future. With that, I'd like to turn the call over to Mike, who will provide more detail on our operations this quarter.