- Fourth Quarter
Net New Home Orders , up 352% - Full Year Total Revenue of
$1.21 billion - Fourth Quarter Home sales revenue of
$379.7 million , driven by 664 home closings at an average price of$572,000 - Fourth Quarter Net income of
$12.5 million , or$0.33 per diluted share - Full Year
Net Income of$29.2 million or$0.75 per diluted share - Entered
Colorado market - Year-end book value per share of
$17.88 , an 11.4% increase
Management Commentary
“Landsea Homes ended 2023 on a strong note, as the company posted healthy profits and a significant year-over-year increase in net new orders in the fourth quarter”, said
Fourth Quarter Operating Results
Net new home orders increased 352% to 398 homes with a dollar value of
The 7% decrease in total revenue to
The company ended the year with 11,176 lots owned and controlled, representing approximately 5 years of supply based on 2023 home closings. 41% of the lots were owned and 59% of the lots were controlled through contracts and option agreements.
Total homes delivered decreased 6% to 664 homes at an average sales price of
Home sales gross margin was 15.9% in the fourth quarter of 2023, compared to 19.0% in the prior year period. Adjusted home sales gross margin (a non-GAAP measure) decreased to 20.8% compared to 23.4% in the fourth quarter 2022. The decrease was primarily the result of additional sales incentives used to close homes during the quarter.
Net income attributable to
Adjusted EBITDA (a non-GAAP measure) was
Full Year 2023 Operating Results
Net new home orders were 1,947 homes with a dollar value of
Total revenue decreased 16% to
Total homes delivered for the year totaled 2,123 homes at an average sales price of
Total homes in backlog at the end of 2023 was 517 homes with a dollar value of
Home sales gross margin decreased to 17.3% from 20.4% in the prior year. Adjusted home sales gross margin (a non-GAAP measure) decreased to 22.4% compared to 26.9% in the prior year. The decrease was primarily due to increased closing incentives across the operating segments.
Net income attributable to
Adjusted EBITDA (a non-GAAP measure) was
Balance Sheet
As of
Landsea Homes’ ratio of debt to capital was 44.1% at
During 2023, the Company repurchased 9% or 3.6 million of its outstanding shares for a total value of
2024 Outlook
First quarter 2024
- New home deliveries anticipated to be in a range of 480 to 500
- Delivery ASPs expected to be in a range of
$560,000 to$575,000 - Home sales gross margins between 15% and 16% on a GAAP basis and between 20% and 21% on an adjusted basis
Full Year 2024
- New home deliveries anticipated to be in a range of 2,500 to 2,900
- Delivery ASPs expected to be in a range of
$500,000 to$525,000 - Home sales gross margins between 17% and 18% on a GAAP basis and between 21% and 23% on an adjusted basis
Conference Call
The Company will hold a conference call today at
- Toll-free dial-in number: 1-877-704-4453
- International dial-in number: 1-201-389-0920
The conference call will also be broadcast live and available for replay in the Investors section of the
A replay of the conference call will be available after
Replay Details:
- Toll-free replay number: 1-844-512-2921
- International replay number: 1-412-317-6671
- Replay ID: 13744526
About
An award-winning homebuilder that builds suburban, single-family detached and attached homes, mid-and high-rise properties, and master-planned communities,
Driven by a pioneering commitment to sustainability, Landsea Homes’
Led by a veteran team of industry professionals who boast years of worldwide experience and deep local expertise,
For more information on
Forward-Looking Statements
Certain statements in this press release may constitute “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 with
- the benefits of the Business Combination and the acquisitions of
Vintage Estate andHanover (the “Acquisitions”); - the future financial performance of the Company;
- changes in the market for Landsea Homes’ products and services; and
- other expansion plans and opportunities.
These forward-looking statements are based on information available as of the date of this press release and our management’s current expectations, forecasts, 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 forward-looking statements.
These risks and uncertainties include, but not are limited to, the risk factors described by
- the ability to recognize the anticipated benefits of the Acquisitions, which may be affected by, among other things, competition, the ability to integrate the combined businesses and the acquired business, and the ability of the combined business and the acquired business to grow and manage growth profitably;
- costs related to continuing as a public company;
- the ability to maintain the listing of Landsea Homes’ 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
Landsea 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;
- risks and uncertainties relating to the material weaknesses in our internal controls over financial reporting;
- the possibility that additional information may arise that would require us to make further adjustments or revisions to our historical financial statements, report additional material weaknesses or delay the filing of our current financial statements; and
- other risks and uncertainties indicated in Landsea Homes’
SEC reports or documents filed or to be filed with theSEC byLandsea 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.
Media Contact:
anoebel@cornerstonecomms.com
(949) 449-2527
Investor Relations Contact:
Mackintosh Investor Relations, LLC
drew@mackintoshir.com
(310) 924-9036
Consolidated Balance Sheets (in thousands, except share and per share amounts) | |||||||
2023 | 2022 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 119,555 | $ | 123,634 | |||
Cash held in escrow | 49,091 | 17,101 | |||||
Real estate inventories | 1,121,726 | 1,093,369 | |||||
Due from affiliates | 4,348 | 3,744 | |||||
68,639 | 68,639 | ||||||
Other assets | 107,873 | 134,009 | |||||
Total assets | $ | 1,471,232 | $ | 1,440,496 | |||
Liabilities | |||||||
Accounts payable | $ | 77,969 | $ | 74,445 | |||
Accrued expenses and other liabilities | 160,256 | 149,426 | |||||
Due to affiliates | 881 | 884 | |||||
Line of credit facility, net | 307,631 | 505,422 | |||||
Senior notes, net | 236,143 | — | |||||
Total liabilities | 782,880 | 730,177 | |||||
Commitments and contingencies | |||||||
Equity | |||||||
Stockholders’ equity: | |||||||
Preferred stock, | — | — | |||||
Common stock, | 4 | 4 | |||||
Additional paid-in capital | 465,290 | 497,598 | |||||
Retained earnings | 187,584 | 158,348 | |||||
Total stockholders’ equity | 652,878 | 655,950 | |||||
Noncontrolling interests | 35,474 | 54,369 | |||||
Total equity | 688,352 | 710,319 | |||||
Total liabilities and equity | $ | 1,471,232 | $ | 1,440,496 |
Consolidated Statements of Operations (in thousands, except share and per share amounts) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenue | |||||||||||||||
Home sales | $ | 379,668 | $ | 417,481 | $ | 1,169,867 | $ | 1,392,750 | |||||||
Lot sales and other | 17,947 | 8,477 | 40,080 | 53,699 | |||||||||||
Total revenue | 397,615 | 425,958 | 1,209,947 | 1,446,449 | |||||||||||
Cost of sales | |||||||||||||||
Home sales | 319,392 | 337,984 | 967,034 | 1,108,204 | |||||||||||
Lot sales and other | 12,169 | 10,775 | 27,939 | 51,321 | |||||||||||
Total cost of sales | 331,561 | 348,759 | 994,973 | 1,159,525 | |||||||||||
Gross margin | |||||||||||||||
Home sales | 60,276 | 79,497 | 202,833 | 284,546 | |||||||||||
Lot sales and other | 5,778 | (2,298 | ) | 12,141 | 2,378 | ||||||||||
Total gross margin | 66,054 | 77,199 | 214,974 | 286,924 | |||||||||||
Sales and marketing expenses | 21,576 | 24,939 | 73,248 | 89,305 | |||||||||||
General and administrative expenses | 27,219 | 18,591 | 101,442 | 89,325 | |||||||||||
Total operating expenses | 48,795 | 43,530 | 174,690 | 178,630 | |||||||||||
Income from operations | 17,259 | 33,669 | 40,284 | 108,294 | |||||||||||
Other income, net | 1,491 | 740 | 4,261 | 86 | |||||||||||
Loss on remeasurement of warrant liability | — | — | — | (7,315 | ) | ||||||||||
Pretax income | 18,750 | 34,409 | 44,545 | 101,065 | |||||||||||
Provision for income taxes | 5,572 | 7,940 | 11,895 | 25,400 | |||||||||||
Net income | 13,178 | 26,469 | 32,650 | 75,665 | |||||||||||
Net income attributable to noncontrolling interests | 703 | 888 | 3,414 | 2,114 | |||||||||||
Net income attributable to | $ | 12,475 | $ | 25,581 | $ | 29,236 | $ | 73,551 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.33 | $ | 0.63 | $ | 0.75 | $ | 1.71 | |||||||
Diluted | $ | 0.33 | $ | 0.62 | $ | 0.75 | $ | 1.70 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 37,349,364 | 39,929,310 | 38,885,003 | 42,052,696 | |||||||||||
Diluted | 37,537,270 | 40,065,480 | 39,076,322 | 42,199,462 |
Home Deliveries and Home Sales Revenue
Three Months Ended | ||||||||||||||||||||||
2023 | 2022 | % Change | ||||||||||||||||||||
Homes | Dollar Value | ASP | Homes | Dollar Value | ASP | Homes | Dollar Value | ASP | ||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
162 | $ | 70,629 | $ | 436 | 162 | $ | 73,631 | $ | 455 | —% | (4)% | (4)% | ||||||||||
199 | 169,183 | 850 | 183 | 160,366 | 876 | 9% | 5% | (3)% | ||||||||||||||
11 | 7,410 | 674 | — | — | N/A | N/A | N/A | N/A | ||||||||||||||
292 | 132,446 | 454 | 340 | 154,348 | 454 | (14)% | (14)% | —% | ||||||||||||||
Metro | — | — | N/A | 4 | 15,666 | 3,917 | N/A | N/A | N/A | |||||||||||||
— | — | N/A | 14 | 13,470 | 962 | N/A | N/A | N/A | ||||||||||||||
Total | 664 | $ | 379,668 | $ | 572 | 703 | $ | 417,481 | $ | 594 | (6)% | (9)% | (4)% |
Year Ended | ||||||||||||||||||||||
2023 | 2022 | % Change | ||||||||||||||||||||
Homes | Dollar Value | ASP | Homes | Dollar Value | ASP | Homes | Dollar Value | ASP | ||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
607 | $ | 264,067 | $ | 435 | 613 | $ | 274,512 | $ | 448 | (1)% | (4)% | (3)% | ||||||||||
514 | 439,939 | 856 | 572 | 502,583 | 879 | (10)% | (12)% | (3)% | ||||||||||||||
11 | 7,410 | 674 | — | — | N/A | N/A | N/A | N/A | ||||||||||||||
986 | 452,608 | 459 | 1,106 | 473,059 | 428 | (11)% | (4)% | 7% | ||||||||||||||
Metro | 1 | 1,649 | 1,649 | 47 | 111,424 | 2,371 | (98)% | (99)% | (30)% | |||||||||||||
4 | 4,194 | 1,049 | 32 | 31,172 | 974 | (88)% | (87)% | 8% | ||||||||||||||
Total | 2,123 | $ | 1,169,867 | $ | 551 | 2,370 | $ | 1,392,750 | $ | 588 | (10)% | (16)% | (6) % |
Three Months Ended | |||||||||||||||||||||
2023 | 2022 | % Change | |||||||||||||||||||
Homes | Dollar Value | ASP | Monthly Absorption Rate | Homes | Dollar Value | ASP | Monthly Absorption Rate | Homes | Dollar Value | ASP | Monthly Absorption Rate | ||||||||||
(dollars in thousands) | |||||||||||||||||||||
124 | $ | 54,061 | $ | 436 | 2.2 | (14 | ) | $ | (11,049 | ) | $ | 789 | (0.3 | ) | 986% | 589% | (45)% | 833% | |||
76 | 73,619 | 969 | 2.5 | 38 | 23,951 | 630 | 1.2 | 100% | 207% | 54% | 108% | ||||||||||
2 | 1,286 | 643 | 0.7 | — | — | N/A | — | N/A | N/A | N/A | N/A | ||||||||||
196 | 89,926 | 459 | 2.2 | 58 | 30,367 | 524 | 0.6 | 238% | 196% | (12)% | 267% | ||||||||||
Metro | — | — | N/A | — | 3 | 11,671 | 3,890 | 3.3 | N/A | N/A | N/A | N/A | |||||||||
— | — | N/A | — | 3 | 2,556 | 852 | 1.0 | N/A | N/A | N/A | N/A | ||||||||||
Total | 398 | $ | 218,892 | $ | 550 | 2.2 | 88 | $ | 57,496 | $ | 653 | 0.5 | 352% | 281% | (16)% | 340% |
Year Ended | |||||||||||||||||||||
2023 | 2022 | % Change | |||||||||||||||||||
Homes | Dollar Value | ASP | Monthly Absorption Rate | Homes | Dollar Value | ASP | Monthly Absorption Rate | Homes | Dollar Value | ASP | Monthly Absorption Rate | ||||||||||
(dollars in thousands) | |||||||||||||||||||||
598 | $ | 255,513 | $ | 427 | 2.9 | 296 | $ | 143,371 | $ | 484 | 1.9 | 102% | 78% | (12)% | 53% | ||||||
596 | 519,664 | 872 | 4.4 | 395 | 354,656 | 898 | 3.2 | 51% | 47% | (3)% | 38% | ||||||||||
2 | 1,286 | 643 | 0.7 | — | — | N/A | — | N/A | N/A | N/A | N/A | ||||||||||
747 | 330,195 | 442 | 2.1 | 786 | 380,396 | 484 | 2.5 | (5)% | (13)% | (9)% | (16)% | ||||||||||
Metro | — | — | N/A | — | 23 | 62,333 | 2,710 | 2.4 | N/A | N/A | N/A | N/A | |||||||||
4 | 4,194 | 1,049 | 1.1 | 20 | 18,824 | 941 | 0.8 | (80)% | (78)% | 11% | 38% | ||||||||||
Total | 1,947 | $ | 1,110,852 | $ | 571 | 2.8 | 1,520 | $ | 959,580 | $ | 631 | 2.4 | 28% | 16% | (10)% | 17% |
(1) Monthly absorption rates for
Average Selling Communities
Three Months Ended | Year Ended | ||||||||||||||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||||
19.0 | 15.7 | 21% | 17.3 | 12.7 | 36% | ||||||||||||||||||
10.0 | 10.7 | (7)% | 11.3 | 10.3 | 10% | ||||||||||||||||||
1.0 | — | N/A | 1.0 | — | N/A | ||||||||||||||||||
30.0 | 30.3 | (1)% | 29.7 | 26.7 | 11% | ||||||||||||||||||
Metro | — | 0.3 | N/A | — | 0.8 | N/A | |||||||||||||||||
— | 1.0 | N/A | 0.3 | 2.2 | (86)% | ||||||||||||||||||
Total | 60.0 | 58.0 | 3% | 58.8 | 52.7 | 12% |
(1) Average selling communities calculations for
Backlog
% Change | |||||||||||||||||||||
Homes | Dollar Value | ASP | Homes | Dollar Value | ASP | Homes | Dollar Value | ASP | |||||||||||||
(dollars in thousands) | |||||||||||||||||||||
96 | $ | 41,433 | $ | 432 | 105 | $ | 49,986 | $ | 476 | (9)% | (17)% | (9)% | |||||||||
161 | 158,170 | 982 | 79 | 78,446 | 993 | 104% | 102% | (1)% | |||||||||||||
14 | 7,540 | 539 | — | — | N/A | N/A | N/A | N/A | |||||||||||||
246 | 128,484 | 522 | 485 | 250,897 | 517 | (49)% | (49)% | 1% | |||||||||||||
Metro | — | — | N/A | 1 | 1,597 | 1,597 | N/A | N/A | N/A | ||||||||||||
— | — | N/A | — | — | N/A | N/A | N/A | N/A | |||||||||||||
Total | 517 | $ | 335,627 | $ | 649 | 670 | $ | 380,926 | $ | 569 | (23)% | (12)% | 14% |
(1) Backlog acquired in
Lots Owned or Controlled
Lots Owned | Lots Controlled | Total | Lots Owned | Lots Controlled | Total | % Change | |||||||||||||||||||||
1,688 | 1,662 | 3,350 | 2,187 | 1,992 | 4,179 | (20)% | |||||||||||||||||||||
657 | 1,422 | 2,079 | 559 | 1,714 | 2,273 | (9)% | |||||||||||||||||||||
127 | 155 | 282 | — | — | — | N/A | |||||||||||||||||||||
1,964 | 1,649 | 3,613 | 2,530 | 1,521 | 4,051 | (11)% | |||||||||||||||||||||
Metro | 2 | — | 2 | 3 | — | 3 | (33)% | ||||||||||||||||||||
130 | 1,720 | 1,850 | 4 | 1,083 | 1,087 | 70% | |||||||||||||||||||||
Total | 4,568 | 6,608 | 11,176 | 5,283 | 6,310 | 11,593 | (4)% |
Home Sales Gross Margins
Home sales gross margin measures the price achieved on delivered homes compared to the costs needed to build the home. In the following table, we calculate gross margins adjusting for interest in cost of sales, inventory impairments, and purchase price accounting for acquired work in process inventory. This non-GAAP financial measure should not be used as a substitute for the Company's operating results in accordance with GAAP. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. We believe the below information is meaningful as it isolates the impact that indebtedness, impairments, and acquisitions have on our gross margins and allows for comparability to previous periods and competitors.
Three Months Ended | |||||||||||||||
2023 | % | 2022 | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Home sales revenue | $ | 379,668 | 100.0 | % | $ | 417,481 | 100.0 | % | |||||||
Cost of home sales | 319,392 | 84.1 | % | 337,984 | 81.0 | % | |||||||||
Home sales gross margin | 60,276 | 15.9 | % | 79,497 | 19.0 | % | |||||||||
Add: Interest in cost of home sales | 14,045 | 3.7 | % | 8,968 | 2.1 | % | |||||||||
Add: Real estate inventories impairments | — | — | % | — | — | % | |||||||||
Adjusted home sales gross margin excluding interest and inventory impairments | 74,321 | 19.6 | % | 88,465 | 21.2 | % | |||||||||
Add: Purchase price accounting for acquired inventory | 4,760 | 1.3 | % | 9,250 | 2.2 | % | |||||||||
Adjusted home sales gross margin excluding interest, inventory impairments, and purchase price accounting for acquired inventory | $ | 79,081 | 20.8 | % | $ | 97,715 | 23.4 | % |
Year Ended | |||||||||||||||
2023 | % | 2022 | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Home sales revenue | $ | 1,169,867 | 100.0 | % | $ | 1,392,750 | 100.0 | % | |||||||
Cost of home sales | 967,034 | 82.7 | % | 1,108,204 | 79.6 | % | |||||||||
Home sales gross margin | 202,833 | 17.3 | % | 284,546 | 20.4 | % | |||||||||
Add: Interest in cost of home sales | 35,576 | 3.0 | % | 40,192 | 2.9 | % | |||||||||
Add: Real estate inventories impairments | 4,700 | 0.4 | % | — | — | % | |||||||||
Adjusted home sales gross margin excluding interest and inventory impairments | 243,109 | 20.8 | % | 324,738 | 23.3 | % | |||||||||
Add: Purchase price accounting for acquired inventory | 18,820 | 1.6 | % | 50,412 | 3.6 | % | |||||||||
Adjusted home sales gross margin excluding interest, inventory impairments, and purchase price accounting for acquired inventory | $ | 261,929 | 22.4 | % | $ | 375,150 | 26.9 | % |
EBITDA and Adjusted EBITDA
The following tables present EBITDA and Adjusted EBITDA for the three months and years ended
Three Months Ended | |||||||
2023 | 2022 | ||||||
(dollars in thousands) | |||||||
Net income | $ | 13,178 | $ | 26,469 | |||
Provision for income taxes | 5,572 | 7,940 | |||||
Interest in cost of sales | 14,452 | 9,152 | |||||
Depreciation and amortization expense | 1,326 | 1,104 | |||||
EBITDA | 34,528 | 44,665 | |||||
Purchase price accounting for acquired inventory | 4,760 | 9,250 | |||||
Transaction costs | 757 | — | |||||
Abandoned project costs | 253 | — | |||||
Equity in net income of unconsolidated joint ventures, excluding interest relieved | — | (10 | ) | ||||
Adjusted EBITDA | $ | 40,298 | $ | 53,905 |
Year Ended | |||||||
2023 | 2022 | ||||||
(dollars in thousands) | |||||||
Net income | $ | 32,650 | $ | 75,665 | |||
Provision for income taxes | 11,895 | 25,400 | |||||
Interest in cost of sales | 36,330 | 40,428 | |||||
Interest relieved to equity in net income of unconsolidated joint ventures | — | 70 | |||||
Depreciation and amortization expense | 5,104 | 5,549 | |||||
EBITDA | 85,979 | 147,112 | |||||
Real estate inventories impairments | 4,700 | — | |||||
Purchase price accounting for acquired inventory | 18,820 | 50,412 | |||||
Transaction costs | 1,390 | 883 | |||||
Write-off of offering costs | 436 | — | |||||
Abandoned project costs | 998 | — | |||||
Equity in net income of unconsolidated joint ventures, excluding interest relieved | — | (219 | ) | ||||
Loss on debt extinguishment or forgiveness | — | 2,496 | |||||
Loss on remeasurement of warrant liability | — | 7,315 | |||||
Adjusted EBITDA | $ | 112,323 | $ | 207,999 |
Adjusted Net Income
Adjusted Net Income to
Three Months Ended | |||||||
2023 | 2022 | ||||||
(dollars in thousands, except share and per share amounts) | |||||||
Net income attributable to | $ | 12,475 | $ | 25,581 | |||
Pre-Merger capitalized related party interest included in cost of sales | 131 | 1,299 | |||||
Equity in net income of unconsolidated joint ventures | — | (10 | ) | ||||
Purchase price accounting for acquired inventory | 4,760 | 9,250 | |||||
Total adjustments | 4,891 | 10,539 | |||||
Tax-effected adjustments(1) | 3,609 | 7,726 | |||||
Adjusted net income attributable to | $ | 16,084 | $ | 33,307 | |||
Net income attributable to | $ | 12,475 | $ | 25,581 | |||
Less: undistributed earnings allocated to participating shares | — | (624 | ) | ||||
Net income attributable to common stockholders | $ | 12,475 | $ | 24,957 | |||
Adjusted net income attributable to | $ | 16,084 | $ | 33,307 | |||
Less: adjusted undistributed earnings allocated to participating shares | — | (813 | ) | ||||
Adjusted net income attributable to common stockholders | $ | 16,084 | $ | 32,494 | |||
Earnings per share | |||||||
Basic | $ | 0.33 | $ | 0.63 | |||
Diluted | $ | 0.33 | $ | 0.62 | |||
Adjusted earnings per share | |||||||
Basic | $ | 0.43 | $ | 0.81 | |||
Diluted | $ | 0.43 | $ | 0.81 | |||
Weighted shares outstanding | |||||||
Weighted average common shares outstanding used in EPS - basic | 37,349,364 | 39,929,310 | |||||
Weighted average common shares outstanding used in EPS - diluted | 37,537,270 | 40,065,480 |
(1) Our tax-effected adjustments are based on our federal rate and a blended state rate adjusted for certain discrete items.
Year Ended | |||||||
2023 | 2022 | ||||||
(dollars in thousands, except share and per share amounts) | |||||||
Net income attributable to | $ | 29,236 | $ | 73,551 | |||
Real estate inventories impairment | 4,700 | — | |||||
Pre-Merger capitalized related party interest included in cost of sales | 1,718 | 5,130 | |||||
Equity in net income of unconsolidated joint ventures | — | (149 | ) | ||||
Purchase price accounting for acquired inventory | 18,820 | 50,412 | |||||
Loss on debt extinguishment or forgiveness | — | 2,496 | |||||
Loss on remeasurement of warrant liability | — | 7,315 | |||||
Total adjustments | 25,238 | 65,204 | |||||
Tax-effected adjustments(1) | 18,622 | 49,755 | |||||
Adjusted net income attributable to | $ | 47,858 | $ | 123,306 | |||
Net income attributable to | $ | 29,236 | $ | 73,551 | |||
Less: undistributed earnings allocated to participating shares | — | (1,706 | ) | ||||
Net income attributable to common stockholders | $ | 29,236 | $ | 71,845 | |||
Adjusted net income attributable to | $ | 47,858 | $ | 123,306 | |||
Less: adjusted undistributed earnings allocated to participating shares | — | (2,861 | ) | ||||
Adjusted net income attributable to common stockholders | $ | 47,858 | $ | 120,445 | |||
Earnings per share | |||||||
Basic | $ | 0.75 | $ | 1.71 | |||
Diluted | $ | 0.75 | $ | 1.70 | |||
Adjusted earnings per share | |||||||
Basic | $ | 1.23 | $ | 2.86 | |||
Diluted | $ | 1.22 | $ | 2.85 | |||
Weighted shares outstanding | |||||||
Weighted average common shares outstanding used in EPS - basic | 38,885,003 | 42,052,696 | |||||
Weighted average common shares outstanding used in EPS - diluted | 39,076,322 | 42,199,462 |
(1) Our tax-effected adjustments are based on our federal rate and a blended state rate adjusted for certain discrete items.
Net Debt to Total Capital
The following table presents the ratio of debt to capital as well as the ratio of net debt to total capital which is a non-GAAP financial measure. The ratio of debt to capital is computed as the quotient obtained by dividing total debt, net of issuance costs, by total capital (sum of total debt, net of issuance costs, plus total equity).
The non-GAAP ratio of net debt to total capital is computed as the quotient obtained by dividing net debt (which is total debt, net of issuance costs, less cash, cash equivalents, and restricted cash as well as cash held in escrow to the extent necessary to reduce the debt balance to zero) by total capital. Prior to the fourth quarter of 2023, we presented the non-GAAP ratio of net debt to net capital computed as the quotient obtained by dividing net debt by net capital (sum of net debt plus total equity). During the fourth quarter of 2023, we began presenting the non-GAAP ratio of net debt to total capital, which is consistent with the ratio presented by our peers. The most comparable GAAP financial measure is the ratio of debt to capital. We believe the ratio of net debt to total capital is a relevant financial measure for investors to understand the leverage employed in our operations and as an indicator of our ability to obtain financing. We believe that by deducting our cash from our debt, we provide a measure of our indebtedness that takes into account our cash liquidity. We believe this provides useful information as the ratio of debt to capital does not take into account our liquidity and we believe that the ratio of net debt to total capital provides supplemental information by which our financial position may be considered.
See table below reconciling this non-GAAP measure to the ratio of debt to capital.
2023 | 2022 | ||||||
(dollars in thousands) | |||||||
Total notes and other debts payable, net | $ | 543,774 | $ | 505,422 | |||
Total equity | 688,352 | 710,319 | |||||
Total capital | $ | 1,232,126 | $ | 1,215,741 | |||
Ratio of debt to capital | 44.1 | % | 41.6 | % | |||
Total notes and other debts payable, net | $ | 543,774 | $ | 505,422 | |||
Less: cash, cash equivalents and restricted cash | 119,555 | 123,634 | |||||
Less: cash held in escrow | 49,091 | 17,101 | |||||
Net debt | $ | 375,128 | $ | 364,687 | |||
Total capital | $ | 1,232,126 | $ | 1,215,741 | |||
Ratio of net debt to total capital | 30.4 | % | 30.0 | % |
Source:
2024 GlobeNewswire, Inc., source