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Jun 30, 2020

LGI Homes Q2 2020 Earnings Report

LGI Homes reported record results, driven by strong demand and effective cash management.

Key Takeaways

LGI Homes announced record second-quarter results, with net income increasing by 20.8% to $55.6 million. Home sales revenues rose by 4.3% to $481.6 million, and home closings increased by 3.1% to 2,005 homes. The company's focus on cash management led to the lowest net debt to capitalization ratio since 2014.

Net income increased 20.8% to $55.6 million.

Home sales revenues increased 4.3% to $481.6 million.

Home closings increased 3.1% to 2,005 homes.

Active selling communities increased 25.8% to 117.

Total Revenue
$482M
Previous year: $462M
+4.3%
EPS
$2.21
Previous year: $1.82
+21.4%
Total Home Closings
2.01K
Previous year: 1.94K
+3.1%
Average Sales Price
$240K
Previous year: $238K
+1.1%
Community Count End Period
117
Previous year: 93
+25.8%
Gross Profit
$118M
Previous year: $111M
+6.0%
Cash and Equivalents
$49.1M
Previous year: $37.6M
+30.7%
Total Assets
$1.64B
Previous year: $1.49B
+10.1%

LGI Homes

LGI Homes

Forward Guidance

The Company anticipates closing between 8,000 to 8,800 homes for the year. Additionally, we expect active selling communities at the end of the year will be between 115 and 125 and expect our average home sales price for 2020 will be in the range of $245,000 to $255,000.