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Dec 31, 2019
LGI Homes Q4 2019 Earnings Report
LGI Homes reported strong Q4 2019 results driven by increased home closings and average home sales price.
Key Takeaways
LGI Homes reported a net income increase of 52.1% to $64.9 million for Q4 2019, with home sales revenues increasing by 42.5% to $605.6 million. The company closed 2,515 homes, a 35.8% increase, and the average home sales price rose by 4.9% to $240,815. Active selling communities increased to 106, up from 88 in Q4 2018.
Net income increased by 52.1% to $64.9 million.
Home sales revenues increased by 42.5% to $605.6 million.
Home closings increased by 35.8% to 2,515.
Average home sales price increased by 4.9% to $240,815.
LGI Homes
LGI Homes
Forward Guidance
LGI Homes anticipates closing between 8,400 and 9,400 homes and ending the year with 120 to 130 active selling communities in 2020. The company projects a gross margin between 22.5% and 24.5%, and an adjusted gross margin between 24.5% and 26.5%. The average home sales price is expected to be between $235,000 and $245,000.
Positive Outlook
- Projected home closings between 8,400 and 9,400.
- Targeting 120 to 130 active selling communities by year-end.
- Gross margin expected between 22.5% and 24.5%.
- Adjusted gross margin projected between 24.5% and 26.5%.
- Average home sales price expected between $235,000 and $245,000.
Challenges Ahead
- Guidance assumes similar economic conditions to early 2020.
- Projections depend on consistent average home sales price.
- Construction costs must remain in line with recent experience.
- Land availability must remain consistent.
- Land development costs must remain consistent.