EXHIBIT 99.1

Landsea Homes Reports Fourth Quarter and Full Year 2021 Results

NEWPORT BEACH, Calif., March 10, 2022 -- Landsea Homes Corporation (Nasdaq: LSEA) (“Landsea Homes” or the “Company”), a publicly traded residential homebuilder, reported financial results for the fourth quarter and full year ended December 31, 2021.

Fourth Quarter 2021 Highlights Compared to Fourth Quarter 2020

Full Year 2021 Highlights Compared to Full Year 2020

Management Commentary

“Landsea Homes delivered strong top and bottom-line growth in the fourth quarter of 2021, capping off a record year for our company,” said John Ho, Chief Executive Officer of Landsea Homes. “We generated earnings of $0.83 per share for the quarter, bringing our full year 2021 earnings to $1.14 per share on a GAAP basis, or $1.44 per share on a fully adjusted basis. We also exceeded the $1 billion dollar revenue mark for the year, a significant milestone for our company.”

Mr. Ho continued, “We saw positive demand trends across our homebuilding platform in the fourth quarter as evidenced by our sales pace of 4.2 homes per community per month for the quarter. This demand strength carried into the first two months of the year as we recorded year-over-year order growth of 20% in January and 40% in February, despite the recent rise in mortgage rates. We attribute this consistent order strength to the ongoing positive fundamentals we continue to see in our markets, our affordable product focus and the appeal of our High-Performance Homes.”

Mr. Ho concluded, “Our strategy of concentrating our homebuilding efforts on a select number of high growth markets proved successful in 2021, and we believe this will continue into the future. Our acquisition of Hanover Family Builders in January of this year marks a continuation of this strategy, as it positions us as one of the largest builders in the greater Orlando area. It also enhances our scale advantages when dealing with local and national suppliers and further solidifies our reputation as an acquirer of choice. Given the positives of this acquisition and the strong operational momentum we carried into 2022, I am extremely optimistic about the future of Landsea Homes.”

Fourth Quarter 2021 Financial and Operational Results

Home sales revenue increased 17% to $333.1 million compared to $284.7 million in the fourth quarter of 2020, driven by a 29% year-over-year increase in average closing prices, partially offset by a 9% decrease in homes delivered. Lot sales and other revenue generated $65.4 million in the quarter.

Home sales gross margin expanded 650 basis points to 21.5% compared to 15.0% in the prior year period. Adjusted home sales gross margin was 25.0% compared to 22.1% in the prior year period. The increase was primarily driven by home sales price appreciation and high product demand in the Arizona and California segments, partially offset by rising material and labor costs.

Net new home orders increased 6% year-over-year on a monthly absorption rate of 4.2 sales per active community compared to a monthly absorption rate of 4.5 sales per active community in the prior year period.

Net income attributable to Landsea Homes increased 260% year-over-year to a total of $38.4 million. Adjusted net income attributable to Landsea Homes (a non-GAAP measure) was $36.8 million compared to $19.4 million in the prior year period.

Adjusted EBITDA (a non-GAAP measure) also expanded to a record $57.9 million compared to $36.1 million in the fourth quarter of 2020.

Full Year 2021 Financial and Operational Results

Total revenue grew 39% to a record $1,023.3 million compared to $734.6 million in 2020 driven by a 19% rise in average closing prices and a 7% increase in deliveries. Total revenue also benefitted from $86.9 million in total lot and other revenue driven primarily by our strategic lot sales and build-on-your-own lot program.

Net new home orders decreased 22% year-over-year on a monthly absorption rate of 3.8 sales per active community compared to a monthly absorption rate of 5.2 sales per active community in the prior year. The decrease in new home orders coincided with our strategic pause in selling during the second half of 2021 in an effort to better align our sales pace with lengthening cycle times brought about by ongoing supply chain issues.

Total homes in backlog increased 33% to 998 homes with a dollar value of $586.2 million and an average sales price of $587,000 at December 31, 2021, compared to 750 homes with a dollar value of $389.3 million and an average sales price of $519,000 at December 31, 2020. Total lots owned or controlled at December 31, 2021 increased 31% to 8,740 compared to 6,680 at December 31, 2020, with 41% of our lots controlled and 59% owned.

Home sales gross margin expanded 460 basis points year-over-year to 17.5%, and adjusted home sales gross margin grew 190 basis points to 22.6%. The increase was primarily driven by home sales appreciation amid high product demand in our Arizona and California segments, partially offset by increasing material and labor costs.

Net income attributable to Landsea Homes was $52.8 million compared to net loss of $9.0 million in the prior year. Adjusted net income attributable to Landsea Homes was $66.8 million compared to $28.0 million in the prior year.

Adjusted EBITDA was $117.9 million compared to $65.0 million in 2020.

Liquidity

At December 31, 2021, cash and cash equivalents totaled $342.8 million compared to $117.4 million at December 31, 2020, reflecting our strong cash generation and a draw under our revolving credit facility in anticipation of closing the Hanover Family Business acquisition in early 2022. Total debt was $461.1 million compared to $264.8 million at December 31, 2020 and net-debt (a non-GAAP measure) was $113.8 million.

Landsea Homes’ ratio of debt to capital was 42.6% at December 31, 2021, compared to 33.3% at December 31, 2020. The Company’s net debt to net book capitalization ( a non-GAAP measure) was 15.5% at December 31, 2021, compared to 21.3% at December 31, 2020.

2022 Outlook

First quarter 2022

For the full year 2022

Unaudited Results

Financial results reported in this document are preliminary. Final financial results and other disclosures will be reported in our Annual Report on Form 10-K for the year ended December 31, 2021 and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information.

Conference Call

The Company will hold a conference call today at 7:00 AM Pacific time (10:00 AM Eastern) time to discuss its fourth quarter and full year 2021 results.

Conference Call Details:

Date: Thursday, March 10, 2022

Time: 7:00 AM Pacific time (10:00 AM Eastern time)

Toll-free dial-in number: 1-833-672-0663

International dial-in number: 1-929-517-0343

Conference ID: 9677438

The conference call will be broadcast live and available for replay via the Investors section of the Landsea Homes website at https://ir.landseahomes.com/.

A replay will be available for one week following the call.

Toll-free replay number: (855) 859-2056

International replay number: (404) 537-3406  

Replay ID: 9677438

About Landsea Homes Corporation

Landsea Homes Corporation (Nasdaq: LSEA) is a publicly traded residential homebuilder based in Newport Beach, CA 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, Florida, Texas and throughout California in Silicon Valley, Los Angeles and Orange County.

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.

For more information on Landsea Homes, visit: www.landseahomes.com.

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. 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:

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 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.

Investor Relations Contact:

Drew Mackintosh

Mackintosh Investor Relations

drew@mackintoshir.com

(310) 924-9036

Media Contact:

Annie Noebel

Cornerstone Communications

anoebel@cornerstonecomms.com

(949) 449-2527

Landsea Homes Corporation

Consolidated Statements of Operations

Landsea Homes Corporation

Consolidated Balance Sheet

Home Deliveries and Home Sales Revenue

Net New Home Orders, Dollar Value of Orders, and Monthly Absorption Rates

Average Selling Communities

Backlog

Lots Owned or Controlled

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 (if applicable), and purchase price accounting for acquired work in process inventory (if applicable). 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 this non-GAAP measure is meaningful because it provides insight into the impact that financing arrangements and acquisitions have on our homebuilding gross margin and allows for comparability of our gross margins to competitors that present similar information.

EBITDA and Adjusted EBITDA

The following tables present EBITDA and Adjusted EBITDA for the three months and years ended December 31, 2021 and 2020. 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 (benefit), (ii) interest expenses, (iii) depreciation and amortization, (iv) inventory impairments, (v) purchase accounting adjustments for acquired work in process inventory related to business combinations, (vi) (gain) loss on debt extinguishment, (vii) transaction costs related to the Merger and business combinations, (viii) the impact of income or loss allocations from our unconsolidated joint ventures, (ix) gain on forgiveness of PPP loan, and (x) gain (loss) on remeasurement of warrant liability. 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. The economic activity related to our unconsolidated joint ventures is not core to our operations and is the reason we have excluded those amounts. Accordingly, we believe this measure is useful for comparing our core operating performance from period to period. Our presentation of Adjusted EBITDA should not be considered as an indication that our future results will be unaffected by unusual or non-recurring items.

Adjusted Net Income

Adjusted Net Income to Landsea is a non-GAAP financial measure that we believe is useful to management, investors and other users of our financial information in evaluating our operating results and understanding our operating results without the effect of certain expenses that were historically pushed down by our parent company 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 is calculated by excluding the effects of related party interest that was pushed down by our parent company, purchase accounting adjustments for acquired work in process inventory related to business combinations, the impact from our unconsolidated joint ventures, merger related transaction costs, gain on forgiveness of PPP loan, and gain (loss) on remeasurement of warrant liability, and tax-effected using a blended statutory tax rate. The economic activity related to our unconsolidated joint ventures is not core to our operations and is the reason we have excluded those amounts. We also adjust for the expense of related party interest pushed down from our parent company as we have no obligation to repay the debt and related interest.

Net Debt to Net Capital

The following table presents the ratio of debt to capital as well as the ratio of net debt to net 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 net 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 to the extent necessary to reduce the debt balance to zero) by net capital (sum of net debt plus total equity). The most comparable GAAP financial measure is the ratio of debt to capital. We believe the ratio of net debt to net 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 net 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.

Source: Landsea Homes