DALLAS - Landsea Homes Corporation (NASDAQ:LSEA), a residential homebuilder with a market capitalization of $406 million, disclosed the pricing of a public offering of shares held by its stockholders. The offering, priced at $10.25 per share, involves 6,086,957 shares, aiming to raise roughly $62.4 million before fees and expenses. According to InvestingPro data, the company operates with a significant debt burden, with a debt-to-equity ratio of 1.14. The sellers, Landsea Holdings Corporation and Ever Fast Holdings Limited, are also granting underwriters an option to purchase up to an additional 913,043 shares. The company itself is not selling any shares in this transaction.
The offering is slated to close around December 9, 2024, subject to standard closing conditions. B. Riley Securities is the sole bookrunner, with Wedbush Securities and Zions Capital Markets as co-managers. The offering is pursuant to an effective shelf registration statement on Form S-3 filed with the U.S. Securities and Exchange Commission (SEC).
This move comes after Landsea Homes was recognized as the Green Home Builder 2023 Builder of the Year, following a notable year marked by transformation. The company, headquartered in Dallas, Texas, has demonstrated strong performance with revenue growth of 18% in the last twelve months and analysts expecting continued sales growth. The company, which maintains a healthy current ratio of 5.02, has a portfolio of homes and communities across various sought-after U.S. markets, including New York, Boston, New Jersey, Arizona, Colorado, Florida, Texas, and California.InvestingPro subscribers have access to over 30 additional financial metrics and insights about Landsea Homes, including detailed Fair Value analysis and comprehensive financial health scores.
The forward-looking statements in this announcement reflect management's current expectations for the offering's completion and the underwriters' option to purchase additional shares. With a P/E ratio of 15.26 and a price-to-book ratio of 0.61, InvestingPro analysis suggests the stock is currently trading slightly above its Fair Value. However, these statements are subject to risks and uncertainties that could cause actual results to differ materially. These include market conditions, interest rates, the trading price and volatility of Landsea Homes' common stock, and other business-related risks.
Investors and the media are advised that this announcement is based on a press release statement and that the offering is made only by means of a prospectus supplement and accompanying prospectus forming part of the registration statement.
In other recent news, Landsea Homes Corporation has announced an underwritten public offering of over 5 million shares. The residential homebuilder, with B. Riley Securities as the sole bookrunner and Wedbush Securities and Zions Capital Markets as co-managers, has clarified that the company itself will not be selling any stock in this offering.
In addition, Landsea Homes has entered into a settlement agreement with Landsea Holdings Corporation, resolving previous service-related claims with a payment of approximately $4.3 million. This settlement brings closure to their outstanding financial matters and provides the company with robust financial flexibility.
On the earnings front, Landsea Homes has reported significant growth in its third quarter, with a 29% year-over-year increase in net income, reaching $11.1 million, while earnings per share rose by 36% to $0.30. Home sales revenue also experienced a 26% boost, hitting $325.6 million, attributed to a 40% increase in deliveries, totaling 629 homes.
For future expectations, Landsea Homes is projecting full-year deliveries to be between 2,890 and 3,000 units, with average sales prices estimated between $520,000 and $535,000. The company also aims to reduce its debt-to-capital ratio to the mid-40% range by the end of Q1 2025. These recent developments suggest a positive outlook for the company's future performance.
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