Landsea Homes Corporation (NASDAQ:LSEA) Q3 2022 Earnings Conference Call November 3, 2022 10:00 AM ET
Company Participants
Drew Mackintosh - Mackintosh IR
John Ho - CEO
Mike Forsum - President and COO
Chris Porter - CFO
Conference Call Participants
Elizabeth Langan - Barclays
Alex Rygiel - B. Riley
Carl Reichardt - BTIG
Alex Barron - Housing Research Center, LLC
Operator
Welcome to the Landsea Homes Corporation Third Quarter 2022 Earnings Call. [Operator Instructions].
I would now like to turn the call over to your host, Drew Mackintosh of Mackintosh IR. Mr. Mackintosh, you may begin, sir.
Drew Mackintosh
Good morning, and welcome to Landsea Homes third quarter 2022 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. Landsea 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 Landsea Homes in 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 and 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 through Landsea Home's website and in its SEC filings.
Hosting the call today are John Ho, Landsea's Chief Executive Officer; Mike Forsum, President and Chief Operating Officer; and Chris Porter, our Chief Financial Officer.
With that, I'd like to turn the call over to John.
John Ho
Good morning, and thank you for joining us today as we go over our results for the third quarter of 2022, provide an update on our current business conditions and give some insight into our company's strategy going forward.
Landsea Homes posted strong profitability in the third quarter. We delivered a record 543 homes during the quarter with ASPs increasing 9% year-over-year to $601,000. This produced a 56% improvement in our top line with revenue growing to $335.6 million. We also improved our home sales gross margin by 480 basis points, which all translated to net income of $20 million or $0.49 per diluted share, a 130% increase over the third quarter of 2021.