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Mar 31, 2021
LGI Homes Q1 2021 Earnings Report
LGI Homes reported record first quarter results driven by increased home closings and average sales price.
Key Takeaways
LGI Homes announced record first quarter 2021 results, with net income increasing by 132.6% to $99.7 million. Home sales revenues rose by 55.2% to $706.0 million, driven by a 39.6% increase in home closings and an 11.2% increase in the average sales price per home closed. The company is updating full year guidance.
Net income increased 132.6% to $99.7 million, or $3.95 diluted EPS.
Home sales revenues increased 55.2% to $706.0 million.
Home closings increased 39.6% to 2,561 homes.
Ending backlog of 5,632 homes, representing $1.6 billion.
LGI Homes
LGI Homes
LGI Homes Revenue by Geographic Location
Revenue by Geographic Location
Central Revenue
CapyFin.comSoutheast Revenue
CapyFin.comNorthwest Revenue
CapyFin.comWest Revenue
CapyFin.comFlorida Revenue
CapyFin.com Forward Guidance
The Company is providing the following updates to its guidance for the full year 2021. The Company believes home closings between 9,700 and 10,300, active selling communities at the end of 2021 between 112 and 120, gross margin as a percentage of home sales revenues between 24.7% to 26.7%, adjusted gross margin (non-GAAP) as a percentage of home sales revenues between 26.5% and 28.5% with capitalized interest accounting for substantially all the difference between gross margin and adjusted gross margin, average sales price per home closed between $275,000 and $285,000 and SG&A as a percentage of home sales revenues between 9.5% and 10.0%.
Positive Outlook
- Home closings between 9,700 and 10,300
- Active selling communities at the end of 2021 between 112 and 120
- Gross margin as a percentage of home sales revenues between 24.7% to 26.7%
- Adjusted gross margin (non-GAAP) as a percentage of home sales revenues between 26.5% and 28.5%
- Average sales price per home closed between $275,000 and $285,000
Challenges Ahead
- General economic conditions, including interest rates and mortgage availability, in the remainder of 2021 are similar to those experienced in the first quarter of 2021
- Average sales price per home closed, construction costs, availability of construction materials, availability of land, land development costs and overall absorption rates in the remainder of 2021 are consistent with the Company’s recent experience
- Governmental regulations relating to land development, home construction and COVID-19 are similar to those currently in place
- Any further COVID-19 governmental restrictions on land development or home construction could negatively impact the Company’s ability to achieve this guidance.
- Effective tax rate for the remainder of 2021 between 21.0% and 22.0%
Revenue & Expenses
Visualization of income flow from segment revenue to net income