Landsea Homes Corporation

Please stand by. Your program is about to begin. If you need assistance on today's conference, please press star zero. Good day, everyone, and welcome to the Landsee Homes Corporation fourth quarter 2024 earnings call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing the star and one on your telephone keypad. You may withdraw yourself from the queue by pressing star 2. Please note, this call may be recorded. I'll be standing by should you need any assistance. It is my pleasure to turn the program over to Drew McIntosh, Investor Relations.

Good morning, and welcome to Lancey Holmes' fourth quarter of 2024 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. Lansi 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 Lansi Holmes in its filings with the Securities and Exchange Commission. We do not undertake any obligation to update forward-looking statements. Additionally, reconciliations of non-GAAP financial measures discussed on this call to the most comparable GAAP measures can be accessed through Lansi Holmes' website and in its SEC filing. 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. Thank you for joining us today as we go over our results for the fourth quarter and full year of 2024 and provide an update on our operations. In the face of challenging headwinds for our industry, Lancy Homes made progress on a number of fronts in 2024. The company made further strides towards becoming a large-scale homebuilder in several key markets across the country. Our goal is to be a top 10 homebuilder in each of our markets, and we see a path to realizing that goal over the next few years. During 2024, we generated home sales revenue of $1.5 billion on new home deliveries of 2,831, both records for our company. We expanded our presence in the state of Texas by acquiring DFW-based and Taurus homes, giving us a foothold in a key market with great long-term fundamentals. We also fortified our operations in our existing markets by opening new communities and acquiring lots for future projects with an emphasis on affordability and functionality through our high performance home series. Our growth has been fueled by a mix of organic expansion and M&A activity, and we continue to see opportunities on both fronts to grow our market share. 2024 was a pivotal year for our company, and we are excited about what the future holds in 2025 and beyond. In terms of the fourth quarter, Lansi generated strong top-line growth of 22% year-over-year, driven by new home delivery growth of 41%. While we are pleased with our team's execution and success in delivering such a high volume of homes in the quarter, the combination of persistently high mortgage rates and buyer hesitancy pinched profitability as we were compelled to increase incentives to compete and move inventory. We also made the strategic decision to reduce our standing inventory and generate additional cash rather than hold onto aging specs heading into the new year. We felt that this was the appropriate path forward, both in terms of our positioning ahead of the spring selling season, our goals for our balance sheet. During the quarter, we generated $47.8 million in cash flow from operations. Net new orders in the fourth quarter came in at 636. representing a 60% increase over the fourth quarter of 2023. Our high-performance homes continue to sell well against the competition and provide our company with a differentiated platform rooted in innovation, energy efficiency, and sustainability. We also benefited from the investments we've made in our online presence, where buyers can utilize tools such as a 360-degree virtual home tours and interactive floor plans to find the perfect home for their needs. It also gives our salespeople important insight into prospective buyers so that they can make an effective pitch about why a Lansing home is right for them. We are firm believers that technology can enhance the value of a new home and also plays an important role in our sales and marketing efforts. During the fourth quarter, we executed a secondary offering on behalf of selling stockholders that achieved the dual goals, diversifying our shareholder base and reducing our ownership concentration. by increasing our public flow. Following this transaction, our biggest shareholder, Lansi Green, reduced its stake in our company to 17%, down from 54% at the beginning of the year. We feel that the concentrated nature of our shareholder base was an overhang for our stock and believe that the quality and stability of our new shareholders will be a long-term positive for our company. Looking ahead to 2025, we are excited about the prospects for our company, given our unique product portfolio, the long-term outlook for our markets, and our positioning within those markets. Clancy has demonstrated an ability to enter markets and quickly scale our local operations. We expect to have similar success in our newer markets. Our high-performance home series is an important differentiator for our company and allows us to draw a distinct contrast with our competitors when competing for new home buyers. We feel that this is an important selling tool given the competitive nature of our markets. While affordability remains an issue for our industry, we believe that there is a strong desire for homeownership in this country and a structural lack of housing supply that should serve as a tailwind for new home construction for years to come. We also think that the recent trend of large public builders taking market share will continue given the cost of capital advantage and scale benefits associated with production home building. As a result, we believe the long-term outlook for our industry, and especially Lansing Homes, remains positive. With that, I'd like to turn the call over to Mike, who will provide more detail on our operational results. Thanks, John, and good morning to everyone.