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Dallas, Texas – February 27, 2025 – Landsea Homes Corporation (Nasdaq: LSEA) (“Landsea Homes” or the “Company”) announced today financial results for the fourth quarter and full year ended December 31, 2024. For the quarter, the Company reported pretax income of $6.5 million and net income of $3.0 million, or $0.08 per diluted share. Adjusted net income (a non-GAAP measure) was $9.1 million or $0.25 per diluted share. For the full year, pretax income was $26.7 million, and net income was $17.2 million, or $0.47 per diluted share. Reported net income for the year includes one-time pretax transaction costs of $8.5 million or $0.17 per diluted share impact. Excluding these costs, net income would have been $23.6 million or $0.64 per diluted share. Adjusted net income was $41.7 million or $1.14 per diluted share. Excluding the one-time transaction costs, adjusted net income was $48.0 million or $1.31 per diluted share.

“Landsea Homes produced strong year-over-year top-line growth of 22% in the fourth quarter of 2024, driven primarily by a 41% increase in new home deliveries,” said John Ho, Landsea Homes’ Chief Executive Officer. “For the full year of 2024, total revenues came in at a record $1.6 billion, and the company closed the highest level of new home deliveries in its history at 2,831. These results were made possible by the great execution and hard work from our team members, as well as the strategic growth initiatives we’ve pursued since our company’s founding.”

Mr. Ho continued, “We generated 636 net new orders during the fourth quarter, which represented a 60% increase as compared to the fourth quarter of 2023. Our sales pace came in at 2.7 homes per community per month, which was a 23% improvement over the same period last year. Mortgage incentives continue to be an important selling tool with buyers, and we utilized them during the quarter to drive order activity and clear out some of the excess standing inventory at our communities. While this had a negative impact on our margins, it also resulted in better cash generation and a reduction in our spec inventory. During the quarter we generated $47.8 million in cash from our operations.”

Mr. Ho concluded, “We believe we are in a strong position as we head into the spring selling season, thanks to our great community locations and our unique product portfolio. Our High-Performance Homes continue to stand out from the competition, both in terms of quality and value, and we feel this differentiation is key to

Total revenue was a record $486.7 million, up 22% compared to the fourth quarter of 2023, primarily driven by contributions from the Colorado division, increased deliveries in Texas as a result of the Antares acquisition, the opening of our Austin communities, and a 55% increase in home sales revenue from the Arizona division.

Net new home orders increased 60% to 636 homes with a dollar value of $289.8 million, an average sales price of $456,000 and a monthly absorption rate of 2.7 sales per active community. This compares to 398 homes with a dollar value of $218.9 million, an average sales price of $550,000 and a monthly absorption rate of 2.2 sales per active community in the prior year period. As a percentage of gross orders, cancellations equaled 14% compared to 13% in the fourth quarter of 2023.

Total lots owned or controlled at December 31, 2024, were 10,944, representing a 4.2 year supply based on the last twelve months’ net orders. This compares to 11,176 owned or controlled at December 31, 2023. The company continues to pursue an asset-light strategy, controlling 56% of lots while the remaining 44% are owned.

Home sales gross margin in the fourth quarter was 12.5% compared to 15.9% in the prior year period. Adjusted home sales gross margin (a non-GAAP measure) was 18.4% compared to 20.8% in the prior year period. The decrease was primarily the result of elevated mortgage rates and the higher cost of sales incentives used to close homes during the quarter.

Net income attributable to Landsea Homes decreased 76% to $3.0 million compared to $12.5 million in the prior year period. Adjusted net income attributable to Landsea Homes (a non-GAAP measure) was $9.1 million compared to $16.3 million in the prior year period. Net income per share on a fully diluted basis was $0.08, compared to $0.33 in the fourth quarter of 2023. Adjusted net income per share (a non-GAAP measure) on a fully diluted basis was $0.25 compared to $0.43 in the fourth quarter of 2023.

Total revenue was a record $1.6 billion, up 28% compared to the full year 2023, primarily driven by the Arizona division producing a 40% increase in home sales revenue on a 38% increase in deliveries, coupled with the Antares acquisition in the DFW market, and the opening of Austin communities. In total, Texas delivered 414 homes and $168.9 million in revenue.

Net new home orders increased 35% to 2,634 homes with a dollar value of $1.3 billion, an average sales price of $504,000, and a monthly absorption rate of 2.8 sales per active community. This compares to 1,947 homes with a dollar value of $1.1 billion, an average sales price of $571,000 and a monthly absorption rate of 2.8 sales per active community in the prior year. The increase in new home orders was primarily from significant increases in Colorado and Texas following recent acquisitions in those segments, and a 36% and 24% increase in the Arizona and Florida segments, respectively, partially offset by a 35% decrease in the California segment due to repositioning the pipeline of communities in Northern California.

Home sales gross margin was 14.7% compared to 17.3% in the prior year. Adjusted home sales gross margin (a non-GAAP measure) was 20.3% compared to 22.4% in the prior year. The decrease was primarily due to elevated mortgage rates and the associated increase to closing incentives across the operating segments.

Net income attributable to Landsea Homes decreased 41.1% to $17.2 million compared to $29.2 million in the prior year. Adjusted net income attributable to Landsea Homes (a non-GAAP measure) was $41.7 million compared to $48.6 million in the prior year. Net income per share on a fully diluted basis was $0.47, a 37.3% decrease compared to $0.75 in 2023. Adjusted net income per share (a non-GAAP measure) on a fully diluted basis was $1.14 compared to $1.24 in 2023.

As of December 31, 2024, the Company had total liquidity of $241.8 million consisting of cash and cash equivalents as well as cash held in escrow of $57.2 million and $184.5 million in availability under the Company’s $455.0 million unsecured revolving credit facility. Total debt, net of issuance costs, was $725.4 million at December 31, 2024 compared to $543.8 million at December 31, 2023.

Landsea Homes’ ratio of debt to capital was 51.8% at December 31, 2024 and the Company’s net debt to total capital (a non-GAAP measure) was 47.7% at December 31, 2024. This compares to a debt to capital ratio of 44.1% and a net debt to total capital ratio of 30.4% at December 31, 2023.

Landsea Homes Corporation (Nasdaq: LSEA) is a publicly traded residential homebuilder based in Dallas, Texas that designs and builds best-in-class homes and sustainable master-planned communities in some of the nation's most desirable markets. The company has developed homes and communities in New York, Boston, New Jersey, Arizona, Colorado, Florida, Texas and throughout California in Silicon Valley, Los Angeles, and Orange County. Landsea Homes was honored as the Green Home Builder 2023 Builder of the Year, after being named the 2022 winner of the prestigious Builder of the Year award, presented by BUILDER magazine, in recognition of a historical year of transformation.

An award-winning homebuilder that builds suburban, single-family detached and attached homes, mid-and high-rise properties, and master-planned communities, Landsea Homes is known for creating inspired places that reflect modern living and provides homebuyers the opportunity to “Live in Your Element.” Our homes allow people to live where they want to live, how they want to live – in a home created especially for them.

Driven by a pioneering commitment to sustainability, Landsea Homes’ High Performance Homes are responsibly designed to take advantage of the latest innovations with home automation technology supported by Apple®. Homes include features that make life easier and provide energy savings that allow for more comfortable living at a lower cost through sustainability features that contribute to healthier living for both homeowners and the planet.

Led by a veteran team of industry professionals who boast years of worldwide experience and deep local expertise, Landsea Homes is committed to positively enhancing the lives of our homebuyers, employees, and stakeholders by creating an unparalleled lifestyle experience that is unmatched.

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. These statements constitute projections, forecasts, and forward-looking statements, and are not guarantees of performance. Landsea Homes 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 future financial performance of Landsea Homes; 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 are not limited to, the risk factors described by Landsea Homes in its filings with the Securities and Exchange Commission (“SEC”). These risk factors and those identified elsewhere in this press release, among others, could cause actual results to differ materially from historical performance and include, but are not limited to:

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.

Under its stock repurchase program, Landsea Homes may purchase its common stock in open market transactions effected through a broker-dealer at prevailing market prices, in block trades, or by other means in accordance with federal securities laws, including pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The Company is not obligated to repurchase any specific number or amount of shares of common stock, and it may modify, suspend or discontinue the program at any time. The Company will determine the timing and amount of repurchase in its discretion based on a variety of factors, such as the market price of the Company’s common stock, corporate requirements, general market economic conditions and legal requirements.


	December 31,
	2024		2023
Assets
Cash and cash equivalents	$	53,322	$	119,555
Cash held in escrow	3,921		49,091


Real estate inventories	1,339,082		1,121,726

Due from affiliates	419		4,348


Goodwill	155,597		68,639
Other assets	148,996		107,873
Total assets	$	1,701,337	$	1,471,232

Liabilities
Accounts payable	$	86,348	$	77,969
Accrued expenses and other liabilities	212,645		160,256
Due to affiliates	881		881


Line of credit facility, net	194,435		307,631
Senior notes, net	530,919		236,143

Total liabilities	1,025,228		782,880



Commitments and contingencies

Equity

Stockholders’ equity:
Preferred stock, $0.0001 par value, 50,000,000 shares authorized, none issued and outstanding as of December 31, 2024 and December 31, 2023, respectively	—		—
Common stock, $0.0001 par value, 500,000,000 shares authorized, 41,712,850 issued and 36,316,855 outstanding as of December 31, 2024, 41,382,453 issued and 36,520,894 outstanding as of December 31, 2023	4		4
Additional paid-in capital	462,363		465,290

Retained earnings	204,815		187,584
Total stockholders’ equity	667,182		652,878
Noncontrolling interests	8,927		35,474
Total equity	676,109		688,352
Total liabilities and equity	$	1,701,337	$	1,471,232


	Three Months Ended December 31,				Year Ended December 31,
	2024		2023		2024		2023
Revenue
Home sales	$	450,554	$	379,668	$	1,486,938	$	1,169,867
Lot sales and other	36,127		17,947		63,399		40,080
Total revenues	486,681		397,615		1,550,337		1,209,947

Cost of sales
Home sales	394,244		319,392		1,268,968		967,034

Lot sales and other	31,099		12,169		53,577		27,939
Total cost of sales	425,343		331,561		1,322,545		994,973

Gross margin
Home sales	56,310		60,276		217,970		202,833
Lot sales and other	5,028		5,778		9,822		12,141
Total gross margin	61,338		66,054		227,792		214,974

Sales and marketing expenses	31,593		21,576		98,189		73,248
General and administrative expenses	24,575		27,219		102,144		101,442
Total operating expenses	56,168		48,795		200,333		174,690

Income from operations	5,170		17,259		27,459		40,284

Other (expense) income, net	1,307		1,491		(784)		4,261


Loss on remeasurement of warrant liability	—		—		—		—

Pretax income	6,477		18,750		26,675		44,545

Provision for income taxes	3,303		5,572		8,141		11,895

Net income	3,174		13,178		18,534		32,650
Net income attributable to noncontrolling interests	128		703		1,303		3,414
Net income attributable to Landsea Homes Corporation	$	3,046	$	12,475	$	17,231	$	29,236

Earnings per share:
Basic	$	0.08	$	0.33	$	0.48	$	0.75
Diluted	$	0.08	$	0.33	$	0.47	$	0.75

Weighted average shares outstanding:
Basic	36,289,952		37,349,364		36,262,257		38,885,003
Diluted	36,559,557		37,537,270		36,556,070		39,076,322


	Three Months Ended December 31,
	2024					2023					% Change
	Homes	Dollar Value		ASP		Homes	Dollar Value		ASP		Homes		Dollar Value		ASP
	(dollars in thousands)
Arizona	250	$	109,277	$	437	162	$	70,629	$	436	54	%	55	%	—	%
California	123	93,580		761		199	169,183		850		(38)	%	(45)	%	(10)	%
Colorado	37	16,320		441		11	7,410		674		236	%	120	%	(35)	%
Florida	338	157,971		467		292	132,446		454		16	%	19	%	3	%
Metro New York	—	—		N/A		—	—		N/A		N/A		N/A		N/A
Texas	189	73,406		388		—	—		N/A		N/A		N/A		N/A
Total	937	$	450,554	$	481	664	$	379,668	$	572	41	%	19	%	(16)	%


	Year Ended December 31,
	2024					2023					% Change
	Homes	Dollar Value		ASP		Homes	Dollar Value		ASP		Homes		Dollar Value		ASP
	(dollars in thousands)
Arizona	838	$	369,602	$	441	607	$	264,067	$	435	38	%	40	%	1	%
California	518	456,585		881		514	439,939		856		1	%	4	%	3	%
Colorado	118	54,256		460		11	7,410		674		973	%	632	%	(32)	%
Florida	942	433,104		460		986	452,608		459		(4)	%	(4)	%	—	%
Metro New York	1	4,475		4,475		1	1,649		1,649		—	%	171	%	171	%
Texas	414	168,916		408		4	4,194		1,049		10,250	%	3,928	%	(61)	%
Total	2,831	$	1,486,938	$	525	2,123	$	1,169,867	$	551	33	%	27	%	(5)	%


	Three Months Ended December 31,
	2024						2023						% 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)
Arizona	168	$	72,217	$	430	3.1	124	$	54,061	$	436	2.2	35	%	34	%	(1)	%	41	%
California	82	59,389		724		2.5	76	73,619		969		2.5	8	%	(19)	%	(25)	%	—	%
Colorado	29	12,867		444		3.2	2	1,286		643		0.7	1,350	%	901	%	(31)	%	357	%
Florida	192	83,707		436		2.4	196	89,926		459		2.2	(2)	%	(7)	%	(5)	%	9	%
Metro New York	—	—		N/A		—	—	—		N/A		—	N/A		N/A		N/A		N/A
Texas	165	61,656		374		2.8	—	—		N/A		—	N/A		N/A		N/A		N/A
Total	636	$	289,836	$	456	2.7	398	$	218,892	$	550	2.2	60	%	32	%	(17)	%	23	%


	Year Ended December 31,
	2024						2023						% 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)
Arizona	812	$	361,869	$	446	3.4	598	$	255,513	$	427	2.9	36	%	42	%	4	%	17	%
California	387	323,892		837		3.2	596	519,664		872		4.4	(35)	%	(38)	%	(4)	%	(27)	%
Colorado (1)	110	50,120		456		3.3	2	1,286		643		0.7	5,400	%	3,797	%	(29)	%	371	%
Florida	923	429,902		466		2.6	747	330,195		442		2.1	24	%	30	%	5	%	24	%
Metro New York	1	4,475		4,475		—	—	—		—		—	N/A		N/A		N/A		N/A
Texas	401	158,331		395		2.2	4	4,194		1,049		1.1	9,925	%	3,675	%	(62)	%	100	%
Total	2,634	$	1,328,589	$	504	2.8	1,947	$	1,110,852	$	571	2.8	35	%	20	%	(12)	%	—	%


	Three Months Ended December 31,				Year Ended December 31,
	2024	2023	% Change		2024	2023	% Change
Arizona	18.0	19.0	(5)	%	19.8	17.3	14	%
California	11.0	10.0	10	%	10.1	11.3	(11)	%
Colorado (1)	3.0	1.0	200	%	2.8	1.0	180	%
Florida	27.0	30.0	(10)	%	29.1	29.7	(2)	%
Metro New York(2)	—	—	N/A		—	—	N/A
Texas	19.7	—	N/A		15.5	0.3	5,067	%
Total	78.7	60.0	31	%	77.2	58.8	31	%


	December 31, 2024					December 31, 2023					% Change
	Homes	Dollar Value		ASP		Homes	Dollar Value		ASP		Homes		Dollar Value		ASP
	(dollars in thousands)
Arizona	70	$	33,700	$	481	96	$	41,433	$	432	(27)	%	(19)	%	11	%
California	30	25,477		849		161	158,170		982		(81)	%	(84)	%	(14)	%
Colorado	6	3,404		567		14	7,540		539		(57)	%	(55)	%	5	%
Florida	227	125,282		552		246	128,484		522		(8)	%	(2)	%	6	%
Metro New York	—	—		N/A		—	—		N/A		N/A		N/A		N/A
Texas(1)	57	24,533		430		—	—		N/A		N/A		N/A		N/A
Total	390	$	212,396	$	545	517	$	335,627	$	649	(25)	%	(37)	%	(16)	%


	December 31, 2024			December 31, 2023
	Lots Owned	Lots Controlled	Total	Lots Owned	Lots Controlled	Total	% Change
Arizona	1,210	1,633	2,843	1,688	1,662	3,350	(15)	%
California	683	938	1,621	657	1,422	2,079	(22)	%
Colorado	204	259	463	127	155	282	64	%
Florida	1,414	1,487	2,901	1,964	1,649	3,613	(20)	%
Metro New York	1	—	1	2	—	2	(50)	%
Texas	1,310	1,805	3,115	130	1,720	1,850	68	%
Total	4,822	6,122	10,944	4,568	6,608	11,176	(2)	%

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 December 31,
	2024		%		2023		%
	(dollars in thousands)
Home sales revenue	$	450,554	100.0	%	$	379,668	100.0	%
Cost of home sales	394,244		87.5	%	319,392		84.1	%
Home sales gross margin	56,310		12.5	%	60,276		15.9	%
Add: Interest in cost of home sales	18,823		4.2	%	14,045		3.7	%
Add: Real estate inventories impairments	—		—	%	—		—	%
Adjusted home sales gross margin excluding interest and inventory impairments	75,133		16.7	%	74,321		19.6	%
Add: Purchase price accounting for acquired inventory	7,890		1.8	%	4,760		1.3	%
Adjusted home sales gross margin excluding interest, inventory impairments, and purchase price accounting for acquired inventory	$	83,023	18.4	%	$	79,081	20.8	%


	Year Ended December 31,
	2024		%		2023		%
	(dollars in thousands)
Home sales revenue	$	1,486,938	100.0	%	$	1,169,867	100.0	%
Cost of home sales	1,268,968		85.3	%	967,034		82.7	%
Home sales gross margin	217,970		14.7	%	202,833		17.3	%
Add: Interest in cost of home sales	58,739		4.0	%	35,576		3.0	%
Add: Real estate inventories impairments	800		0.1	%	4,700		0.4	%
Adjusted home sales gross margin excluding interest and inventory impairments	277,509		18.7	%	243,109		20.8	%
Add: Purchase price accounting for acquired inventory	24,569		1.7	%	18,820		1.6	%
Adjusted home sales gross margin excluding interest, inventory impairments, and purchase price accounting for acquired inventory	$	302,078	20.3	%	$	261,929	22.4	%

The following tables present EBITDA and Adjusted EBITDA for the three months and years ended December 31, 2024 and 2023. Adjusted EBITDA is a non-GAAP financial measure used by management in evaluating operating performance. We define Adjusted EBITDA as net income before (i) income tax expense, (ii) interest expenses, (iii) depreciation and amortization, (iv) real estate inventories impairment and abandoned project costs, (v) purchase accounting adjustments for acquired work in process inventory related to business combinations, (vi) loss on debt modification, (vii) transaction costs related to business combinations, and (viii) write-off of deferred offering costs. We believe Adjusted EBITDA provides an indicator of general economic performance that is not affected by fluctuations in interest, effective tax rates, levels of depreciation and amortization, and items considered to be non-recurring. Accordingly, we believe this measure is useful for comparing our core operating performance from period to period.


	Three Months Ended December 31,
	2024		2023
	(dollars in thousands)
Net income	$	3,174	$	13,178
Provision for income taxes	3,303		5,572
Interest in cost of sales	18,729		14,452


Depreciation and amortization expense	2,067		1,326
EBITDA	27,273		34,528
Real estate inventories impairments and abandoned project costs	214		253
Purchase price accounting for acquired inventory	7,890		4,760
Transaction costs	2,534		757
Write-off of offering costs	729		—



Adjusted EBITDA	$	38,640	$	40,298


	Year Ended December 31,
	2024		2023
	(dollars in thousands)
Net income	$	18,534	$	32,650
Provision for income taxes	8,141		11,895
Interest in cost of sales	60,953		36,330

Depreciation and amortization expense	7,366		5,104
EBITDA	94,994		85,979
Real estate inventories impairments and abandoned project costs	2,916		5,698
Purchase price accounting for acquired inventory	24,569		18,820
Transaction costs	7,787		1,390
Write-off of offering costs	729		436
Loss on debt modification	5,180		—

Adjusted EBITDA	$	136,175	$	112,323

Adjusted Net Income to Landsea Homes is a non-GAAP financial measure that we believe is useful to management, investors and other users of our financial information in evaluating and understanding our operating results without the effect of certain expenses that were historically pushed down by our parent company at the time and other non-recurring items. We believe excluding these items provides a more comparable assessment of our financial results from period to period. Adjusted Net Income to Landsea Homes is calculated by excluding the effects of related party interest that was pushed down by our prior parent company, purchase accounting adjustments for acquired work in process inventory related to business combinations, loss on debt modification, and real estate inventories impairment, and tax-effected using a blended statutory tax rate. Beginning in the year ended December 31, 2024, we began adjusting for abandoned project costs as a write-off of real estate inventories similar to real estate inventories impairment. We adjusted the prior period presented to maintain comparability between the periods. We adjust for the


	Three Months Ended December 31,
	2024		2023
	(dollars in thousands, except share and per share amounts)
Net income attributable to Landsea Homes Corporation	$	3,046	$	12,475

Real estate inventories impairment and abandoned project costs	214		253
Pre-Merger capitalized related party interest included in cost of sales	24		131
Purchase price accounting for acquired inventory	7,890		4,760
Total adjustments	8,128		5,144
Tax-effected adjustments (1)	6,055		3,796

Adjusted net income attributable to Landsea Homes Corporation	$	9,101	$	16,271










Earnings per share
Basic	$	0.08	$	0.33
Diluted	$	0.08	$	0.33

Adjusted earnings per share
Basic	$	0.25	$	0.44
Diluted	$	0.25	$	0.43

Weighted shares outstanding
Weighted average common shares outstanding used in EPS - basic	36,289,952		37,349,364
Weighted average common shares outstanding used in EPS - diluted	36,559,557		37,537,270


	Year Ended December 31,
	2024		2023
	(dollars in thousands, except share and per share amounts)
Net income attributable to Landsea Homes Corporation	$	17,231	$	29,236

Real estate inventories impairment and abandoned project costs	2,916		5,698
Pre-Merger capitalized related party interest included in cost of sales	153		1,718
Purchase price accounting for acquired inventory	24,569		18,820
Loss on debt modification	5,180		—
Total adjustments	32,818		26,236
Tax-effected adjustments (1)	24,448		19,358

Adjusted net income attributable to Landsea Homes Corporation	$	41,679	$	48,594










Earnings per share
Basic	$	0.48	$	0.75
Diluted	$	0.47	$	0.75

Adjusted earnings per share
Basic	$	1.15	$	1.25
Diluted	$	1.14	$	1.24

Weighted shares outstanding
Weighted average common shares outstanding used in EPS - basic	36,262,257		38,885,003
Weighted average common shares outstanding used in EPS - diluted	36,556,070		39,076,322

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 as well as cash held in escrow to the extent necessary to reduce the debt balance to zero) by total capital. 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.


	December 31,
	2024			2023
	(dollars in thousands)
Total notes and other debts payable, net	$	725,354		$	543,774
Total equity	676,109			688,352
Total capital	$	1,401,463		$	1,232,126
Ratio of debt to capital	51.8		%	44.1		%

Total notes and other debts payable, net	$	725,354		$	543,774
Less: cash and cash equivalents	53,322			119,555
Less: cash held in escrow	3,921			49,091
Net debt	$	668,111		$	375,128

Total capital	$	1,401,463		$	1,232,126
Ratio of net debt to total capital	47.7		%	30.4		%