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Dec 31, 2022
LGI Homes Q4 2022 Earnings Report
LGI Homes reported a decrease in net income and home sales revenues, but an increase in average sales price for Q4 2022.
Key Takeaways
LGI Homes reported a decrease in net income by 69.3% to $34.1 million and a decrease in home sales revenues by 39.0% to $488.3 million for Q4 2022. However, the average sales price per home closed increased by 6.3% to $337,198. The company's focus remains on driving leads, controlling costs, and maintaining a strong balance sheet.
Net income decreased 69.3% to $34.1 million, or $1.46 basic EPS and $1.45 diluted EPS.
Home sales revenues decreased 39.0% to $488.3 million.
Home closings decreased 42.7% to 1,448 homes.
Average sales price per home closed increased 6.3% to $337,198.
Forward Guidance
The Company expects home closings between 6,000 and 7,000, active selling communities at the end of 2023 between 115 and 125, average sales price per home closed between $335,000 and $350,000, gross margin as a percentage of home sales revenues between 21.0% and 23.0%, adjusted gross margin (non-GAAP) as a percentage of home sales revenues between 22.5% and 24.5%, SG&A as a percentage of home sales revenues between 11.5% and 12.5%, and effective tax rate between 23.5% and 24.5%.
Positive Outlook
- Home closings between 6,000 and 7,000
- Active selling communities at the end of 2023 between 115 and 125
- Average sales price per home closed between $335,000 and $350,000
- Gross margin as a percentage of home sales revenues between 21.0% and 23.0%
- Adjusted gross margin (non-GAAP) as a percentage of home sales revenues between 22.5% and 24.5%
Challenges Ahead
- SG&A as a percentage of home sales revenues between 11.5% and 12.5%
- Effective tax rate between 23.5% and 24.5%
Historical Earnings Impact
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Avg. Return Before/After Earnings
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