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Dec 31, 2020
LGI Homes Q4 2020 Earnings Report
LGI Homes reported record results driven by increased home closings and average sales price.
Key Takeaways
LGI Homes reported a record-breaking fourth quarter and full year in 2020. In the fourth quarter, home closings increased by 35.5% to 3,408 homes, and home sales revenues increased by 48.2% to $897.4 million. Net income increased by 110.3% to $136.4 million, or $5.34 diluted EPS.
Net income increased 110.3% to $136.4 million, or $5.34 Diluted EPS.
Home Sales Revenues increased 48.2% to $897.4 million.
Home Closings increased 35.5% to 3,408 homes.
Average Sales Price Per Home Closed increased 9.3% to $263,321.
Forward Guidance
The Company is providing the following guidance for the full year 2021.
Positive Outlook
- Home closings will be between 9,200 and 9,800
- Active selling communities at the end of 2021 will be between 112 and 120
- Average sales price per home closed will be between $260,000 and $270,000
- Gross margin as a percentage of home sales revenues will be between 24.0% and 26.0%
- Adjusted gross margin (non-GAAP) as a percentage of home sales revenues will be between 26.0% and 28.0% with capitalized interest accounting for substantially all the difference between gross margin and adjusted gross margin
Challenges Ahead
- SG&A as a percentage of home sales revenues will be between 10.3% and 10.8%
- Effective tax rate for 2021 will be between 21.5% and 22.5%
- This outlook assumes that general economic conditions, including interest rates and mortgage availability, in the remainder of 2021 are similar to those experienced to date in 2021
Historical Earnings Impact
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Avg. Return Before/After Earnings
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