LGI Homes, Inc. (NASDAQ: LGIH) today announced financial results
for the third quarter and nine months ended September 30, 2021.
Third Quarter 2021 Highlights and
Comparisons to Third Quarter 2020
- Net Income
increased 13.0% to $100.6 million, or $4.10 Basic EPS and $4.05
Diluted EPS
- Net Income Before
Income Taxes increased 63.2% to $127.0 million
- Home Sales Revenues
increased 40.7% to $751.6 million
- Home Closings
increased 19.5% to 2,499 homes closed
- Average Sales Price
Per Home Closed increased 17.7% to $300,764
- Gross Margin as a
Percentage of Homes Sales Revenues increased 160 basis points to
26.9%
- Adjusted Gross
Margin* as a Percentage of Home Sales Revenues increased 90 basis
points to 28.2%
- Active Selling
Communities at September 30, 2021 decreased 6.4% to 103
*Non-GAAP
Please see “Non-GAAP Measures” for a
reconciliation of Adjusted Gross Margin (a non-GAAP measure) to
Gross Margin, the most directly comparable GAAP measure.
Nine Months Ended September 30, 2021
Highlights and Comparisons to Nine Months Ended September 30,
2020
- Net Income
increased 69.8% to $318.3 million, or $12.85 Basic EPS and $12.72
Diluted EPS
- Net Income Before
Income Taxes increased 98.4% to $399.4 million
- Home Sales Revenues
increased 52.9% to $2.2 billion
- Home Closings
increased 33.5% to 7,916 homes closed
- Average Sales Price
Per Home Closed increased 14.6% to $284,117
- Gross Margin as a
Percentage of Homes Sales Revenues increased 250 basis points to
27.0%
- Adjusted Gross
Margin* as a Percentage of Home Sales Revenues increased 190 basis
points to 28.4%
- Total Owned and
Controlled lots of 87,512 at September 30, 2021
*Non-GAAP
Please see “Non-GAAP Measures” for a
reconciliation of Adjusted Gross Margin (a non-GAAP measure) to
Gross Margin, the most directly comparable GAAP measure.
Balance Sheet Highlights
- Total liquidity of
$506.3 million at September 30, 2021 including cash and cash
equivalents of $46.7 million and $459.6 million of availability
under the Company’s revolving credit facility
- Net debt to
capitalization of 31.7% at September 30, 2021, compared to
30.6% at December 31, 2020
- 358,817 shares of
common stock repurchased during the third quarter of 2021
Management Comments
“We delivered another record breaking quarter,
despite continued cost pressures and numerous supply chain
headwinds,” stated Eric Lipar, Chairman and Chief Executive Officer
of LGI Homes.
“During the quarter, we closed 2,499 homes,
increased revenue 40.7% to $752 million and delivered a record 8.1
home closings per community, per month. Continued mitigation of
cost pressures supported a 160 basis point improvement in our gross
margin and a 90 basis point improvement in our adjusted gross
margin. Our SG&A expense ratio declined to an all-time low of
8.6%, helping drive a 230 basis point improvement in our pre-tax
net income margin to 16.9%. Net income increased 13% year-over-year
to $101 million, or $4.05 per diluted share, and we delivered a 39%
return on equity.
“Based on our continued high absorptions and
supply chain impacts to development timing, we now expect to end
the year with 100 to 105 active communities. However, we maintain
our expectation to close between 10,000 and 10,500 homes at an
average sales price of $285,000 to $295,000. Given our performance
to date, we are tightening guidance on our gross margin to a range
between 26.5% and 27.5% and adjusted gross margin to a range
between 28% and 29%. Our full year SG&A expense ratio is
unchanged. Finally, we are tightening our full year effective tax
rate to a range between 20.0% and 21.0%.”
Mr. Lipar concluded, “Our incredible performance
to date, strong capital position and attractive land portfolio have
put us on track to deliver record results in 2021 and positioned us
for continued success in the years to come.”
2021 Third Quarter Results
Home closings during the third quarter of 2021
totaled 2,499, an increase of 19.5%, from 2,091 home closings
during the third quarter of 2020.
At the end of the third quarter of 2021, active
selling communities decreased to 103 from 110 communities at the
end of the third quarter of 2020. The decrease in community count
is due to close out of or transition between certain active
communities for the third quarter of 2021 as compared to the third
quarter of 2020.
Home sales revenues for the third quarter of
2021 were $751.6 million, an increase of $217.4 million, or 40.7%,
over the third quarter of 2020. The increase in home sales revenues
is primarily due to the increase in home closings and an increase
in the average sales price per home closed during the third quarter
of 2021.
The average sales price per home closed for the
third quarter of 2021 was $300,764, an increase of $45,287, or
17.7%, over the third quarter of 2020. This increase in the average
sales price per home closed is primarily due to increased closings
at higher price points in certain markets and a favorable pricing
environment, partially offset by additional wholesale home
closings.
Gross margin as a percentage of home sales
revenues for the third quarter of 2021 was 26.9% as compared to
25.3% for the third quarter of 2020. Adjusted gross margin
(non-GAAP) as a percentage of home sales revenues for the third
quarter of 2021 was 28.2% as compared to 27.3% for the third
quarter of 2020. The increase in gross margin and adjusted gross
margin as a percentage of home sales revenues is primarily due to
raising prices higher than increases in input costs, for the third
quarter of 2021 as compared to the third quarter of 2020. Please
see “Non-GAAP Measures” for a reconciliation of adjusted gross
margin (non-GAAP) to gross margin, the most comparable GAAP
measure.
Loss on extinguishment of debt for the third
quarter of 2021 was $13.3 million, primarily due to the redemption
premium associated with our 6.875% Senior Notes due 2026 (the “2026
Senior Notes”), as well as debt issuance costs and discount
previously capitalized that were associated with the 2026 Senior
Notes. There was no loss on extinguishment of debt for the third
quarter of 2020.
Net income for the third quarter of 2021 was
$100.6 million, or $4.10 per basic share and $4.05 per diluted
share, an increase of $11.5 million, or 13.0%, from $89.0 million,
or $3.55 per basic share and $3.52 per diluted share, for the third
quarter of 2020. The increase in net income is primarily attributed
to higher gross margins, operating leverage realized from the
increase in home sales revenues and higher average sales price per
home closed recognized during the third quarter of 2021 as compared
to the third quarter of 2020.
Results for the Nine Months Ended September 30,
2021
Home closings during the nine months ended
September 30, 2021 totaled 7,916, an increase of 33.5%, from 5,931
home closings during the nine months ended September 30, 2020.
Home sales revenues for the nine months ended
September 30, 2021 were $2.2 billion, an increase of $778.5
million, or 52.9%, over the nine months ended September 30, 2020.
The increase in home sales revenues is primarily due to increased
home closings and an increase in the average sales price per home
closed during the nine months ended September 30, 2021 as compared
to the nine months ended September 30, 2020.
The average sales price per home closed for the
nine months ended September 30, 2021 was $284,117, an increase of
$36,177, or 14.6%, over the first quarter 2020. This increase in
the average sales price per home closed is primarily due to higher
price points in certain markets, partially offset by additional
wholesale home closings.
Gross margin as a percentage of home sales
revenues for the nine months ended September 30, 2021 was 27.0% as
compared to 24.5% for the nine months ended September 30, 2020.
Adjusted gross margin (non-GAAP) as a percentage of home sales
revenues for the nine months ended September 30, 2021 was 28.4% as
compared to 26.5% for the nine months ended September 30, 2020. The
increase in gross margin and adjusted gross margin as a percentage
of home sales revenues is primarily due to raising prices higher
than increases in input costs for the nine months ended September
30, 2021 as compared to the nine months ended September 30, 2020.
Please see “Non-GAAP Measures” for a reconciliation of adjusted
gross margin (non-GAAP) to gross margin, the most comparable GAAP
measure.
Loss on extinguishment of debt for the nine
months ended September 30, 2021 was $14.0 million, primarily
due to the redemption premium associated with the 2026 Senior
Notes, as well as debt issuance costs and discount previously
capitalized that were associated with the 2026 Senior Notes and
debt issuance costs previously capitalized that were associated
with our revolving credit facility. There was no loss on
extinguishment of debt for the nine months ended September 30,
2020.
Net income for the nine months ended September
30, 2021 was $318.3 million, or $12.85 per basic share and $12.72
per diluted share, an increase of $130.9 million, or 69.8%, from
$187.5 million, or $7.45 per basic share and $7.40 per diluted
share, for the nine months ended September 30, 2020. The increase
in net income is primarily attributed to operating leverage
realized from the increase in home sales revenues and higher
average sales price per home closed, partially offset by tax
benefits relating to the federal energy efficient homes tax credits
recognized during the nine months ended September 30, 2020.
Updated Full Year 2021
Outlook
Subject to the caveats in the Forward-Looking
Statements section of this press release, the Company is providing
the following updates to its guidance for the full year 2021. The
Company believes:
- Home closings
between 10,000 and 10,500
- Active selling
communities at the end of 2021 between 100 and 105
- Average sales price
per home closed between $285,000 and $295,000
- Gross margin as a
percentage of home sales revenues between 26.5% and 27.5%
- Adjusted gross
margin (non-GAAP) as a percentage of home sales revenues between
28.0% and 29.0% with capitalized interest accounting for
substantially all the difference between gross margin and adjusted
gross margin as a percentage of home sales revenues
- SG&A as a
percentage of home sales revenues between 9.0% and 9.5%
- Effective tax rate
between 20.0% and 21.0%
This outlook assumes that general economic
conditions, including interest rates and mortgage availability, in
the remainder of 2021 are similar to those experienced so far in
the fourth quarter of 2021 and that 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. In addition, this outlook assumes that
governmental regulations relating to land development, home
construction and COVID-19 are similar to those currently in place.
Any further restrictions related to COVID-19 or other governmental
restrictions on land development or home construction could
negatively impact the Company’s ability to achieve this
guidance.
Earnings Conference Call
The Company will host a conference call via live
webcast for investors and other interested parties beginning at
12:30 p.m. Eastern Time on Tuesday, November 2, 2021 (the
“Earnings Call”). The Earnings Call will be hosted by Eric Lipar,
Chief Executive Officer and Chairman of the Board, and Charles
Merdian, Chief Financial Officer and Treasurer.
Participants may access the live webcast by
visiting the Investor Relations section of the Company’s website at
www.lgihomes.com. The Earnings Call can also be accessed by dialing
(855) 433-0929, or (970) 315-0256 for international
participants.
An archive of the Earnings Call webcast will be
available on the Company’s website for approximately 12 months. A
replay of the Earnings Call will also be available later that day
by calling (855) 859-2056, or (404) 537-3406 and using conference
ID “4394403”. This replay will be available until November 9,
2021.
About LGI Homes, Inc.
LGI Homes, Inc. is a pioneer in the homebuilding
industry, successfully applying an innovative and systematic
approach to the design, construction and sale of homes. As one of
America’s fastest growing companies, LGI Homes has a notable legacy
of more than 18 years of homebuilding excellence, over which time
it has closed more than 50,000 homes and has been profitable every
year. Headquartered in The Woodlands, Texas, LGI Homes has
operations across 35 markets in 19 states and, since 2018, has been
ranked as the 10th largest residential builder in the United States
based on units closed. Nationally recognized for its quality
construction and exceptional customer service, LGI Homes’
commitment to excellence extends to its more than 900 employees,
earning the Company numerous workplace awards at the local, state
and national level, including Top Workplaces USA’s 2021 Cultural
Excellence Award. For more information about LGI Homes and its
unique operating model focused on making the dream of homeownership
a reality for families across the nation, please visit the
Company’s website at www.lgihomes.com.
Forward-Looking Statements
Any statements made in this press release or on
the Earnings Call that are not statements of historical fact,
including statements about the Company’s beliefs and expectations,
are forward-looking statements within the meaning of the federal
securities laws, and should be evaluated as such. Forward-looking
statements include information concerning projected 2021 home
closings, year-end active selling communities, average sales price
per home closed, gross margin as a percentage of home sales
revenues, adjusted gross margin as a percentage of homes sales
revenues, SG&A as a percentage of home sales revenues,
effective tax rate, and the impact of the COVID-19 pandemic and its
effect on the Company, its business, customers, subcontractors, and
its markets, as well as market conditions and possible or assumed
future results of operations, including descriptions of the
Company's business plan and strategies. These forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms “anticipate,” “believe,”
“continue,” “could,” “estimate,” “expect,” “forecast,” “goal,”
“intend,” “may,” “objective,” “plan,” “potential,” “predict,”
“projection,” “should,” “will” or, in each case, their negative, or
other variations or comparable terminology. For more information
concerning factors that could cause actual results to differ
materially from those contained in the forward-looking statements
please refer to the “Risk Factors” section in the Company’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2020,
including the “Cautionary Statement about Forward-Looking
Statements” subsection within the “Risk Factors” section, the “Risk
Factors” and “Cautionary Statement about Forward-Looking
Statements” sections in the Company’s Quarterly Report on Form 10-Q
for the quarters ended March 31, 2021, June 30, 2021 and September
30, 2021 and subsequent filings by the Company with the Securities
and Exchange Commission. The Company bases these forward-looking
statements or projections on its current expectations, plans and
assumptions that it has made in light of its experience in the
industry, as well as its perceptions of historical trends, current
conditions, expected future developments and other factors it
believes are appropriate under the circumstances and at such time.
As you read and consider this press release or listen to the
Earnings Call, you should understand that these statements are not
guarantees of future performance or results. The forward-looking
statements and projections are subject to and involve risks,
uncertainties and assumptions and you should not place undue
reliance on these forward-looking statements or projections.
Although the Company believes that these forward-looking statements
and projections are based on reasonable assumptions at the time
they are made, you should be aware that many factors could affect
the Company’s actual results to differ materially from those
expressed in the forward-looking statements and projections. The
Company undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. If the Company does update one or more
forward-looking statements, there should be no inference that it
will make additional updates with respect to those or other
forward-looking statements.
LGI HOMES,
INC.CONSOLIDATED BALANCE
SHEETS(Unaudited)(In thousands,
except share data)
|
|
September 30, |
|
December 31, |
|
|
2021 |
|
2020 |
ASSETS |
|
|
|
|
Cash and cash equivalents |
|
$ |
46,717 |
|
|
$ |
35,942 |
|
Accounts receivable |
|
49,171 |
|
|
115,939 |
|
Real estate inventory |
|
1,908,135 |
|
|
1,569,489 |
|
Pre-acquisition costs and deposits |
|
50,267 |
|
|
37,213 |
|
Property and equipment, net |
|
13,364 |
|
|
3,618 |
|
Other assets |
|
66,272 |
|
|
44,882 |
|
Deferred tax assets, net |
|
7,613 |
|
|
6,986 |
|
Goodwill |
|
12,018 |
|
|
12,018 |
|
Total assets |
|
$ |
2,153,557 |
|
|
$ |
1,826,087 |
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
Accounts payable |
|
$ |
35,455 |
|
|
$ |
13,676 |
|
Accrued expenses and other liabilities |
|
116,234 |
|
|
135,008 |
|
Notes payable |
|
666,094 |
|
|
538,398 |
|
Total liabilities |
|
817,783 |
|
|
687,082 |
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
EQUITY |
|
|
|
|
Common stock, par value $0.01,
250,000,000 shares authorized, 26,941,222 shares issued and
24,273,191 shares outstanding as of September 30, 2021 and
26,741,554 shares issued and 24,983,561 shares outstanding as of
December 31, 2020 |
|
269 |
|
|
267 |
|
Additional paid-in capital |
|
286,709 |
|
|
270,598 |
|
Retained earnings |
|
1,252,619 |
|
|
934,277 |
|
Treasury stock, at cost,
2,668,031 shares and 1,757,993 shares, respectively |
|
(203,823 |
) |
|
(66,137 |
) |
Total equity |
|
1,335,774 |
|
|
1,139,005 |
|
Total liabilities and equity |
|
$ |
2,153,557 |
|
|
$ |
1,826,087 |
|
LGI HOMES,
INC.CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)(In
thousands, except share and per share data)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Home sales revenues |
|
$ |
751,608 |
|
|
$ |
534,202 |
|
|
$ |
2,249,073 |
|
|
$ |
1,470,531 |
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
549,319 |
|
|
398,971 |
|
|
1,642,756 |
|
|
1,110,763 |
|
Selling expenses |
|
39,871 |
|
|
35,470 |
|
|
127,450 |
|
|
98,193 |
|
General and
administrative |
|
24,480 |
|
|
22,320 |
|
|
72,479 |
|
|
62,422 |
|
Operating income |
|
137,938 |
|
|
77,441 |
|
|
406,388 |
|
|
199,153 |
|
Loss on extinguishment of
debt |
|
13,314 |
|
|
— |
|
|
13,976 |
|
|
— |
|
Other income, net |
|
(2,370 |
) |
|
(374 |
) |
|
(6,979 |
) |
|
(2,148 |
) |
Net income before income
taxes |
|
126,994 |
|
|
77,815 |
|
|
399,391 |
|
|
201,301 |
|
Income tax provision |
|
26,444 |
|
|
(11,189 |
) |
|
81,049 |
|
|
13,834 |
|
Net income |
|
$ |
100,550 |
|
|
$ |
89,004 |
|
|
$ |
318,342 |
|
|
$ |
187,467 |
|
Earnings per share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
4.10 |
|
|
$ |
3.55 |
|
|
$ |
12.85 |
|
|
$ |
7.45 |
|
Diluted |
|
$ |
4.05 |
|
|
$ |
3.52 |
|
|
$ |
12.72 |
|
|
$ |
7.40 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
24,508,134 |
|
|
25,089,424 |
|
|
24,766,260 |
|
|
25,162,162 |
|
Diluted |
|
24,824,320 |
|
|
25,257,053 |
|
|
25,030,161 |
|
|
25,328,555 |
|
Non-GAAP Measures
In addition to the results reported in
accordance with accounting principles generally accepted in the
United States (“GAAP”), the Company has provided information in
this press release relating to adjusted gross margin, adjusted net
income and adjusted earnings per share.
Adjusted Gross Margin
Adjusted gross margin is a non-GAAP financial
measure used by management as a supplemental measure in evaluating
operating performance. The Company defines adjusted gross margin as
gross margin less capitalized interest and adjustments resulting
from the application of purchase accounting included in the cost of
sales. Management believes this information is useful because it
isolates the impact that capitalized interest and purchase
accounting adjustments have on gross margin. However, because
adjusted gross margin information excludes capitalized interest and
purchase accounting adjustments, which have real economic effects
and could impact results, the utility of adjusted gross margin
information as a measure of operating performance may be limited.
In addition, other companies may not calculate adjusted gross
margin information in the same manner that the Company does.
Accordingly, adjusted gross margin information should be considered
only as a supplement to gross margin information as a measure of
the Company’s performance.
The following table reconciles adjusted gross
margin to gross margin, which is the GAAP financial measure that
management believes to be most directly comparable (dollars in
thousands, unaudited):
|
|
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Home sales revenues |
|
$ |
751,608 |
|
|
$ |
534,202 |
|
|
$ |
2,249,073 |
|
|
$ |
1,470,531 |
|
Cost of sales |
|
549,319 |
|
|
398,971 |
|
|
1,642,756 |
|
|
1,110,763 |
|
Gross margin |
|
202,289 |
|
|
135,231 |
|
|
606,317 |
|
|
359,768 |
|
Capitalized interest charged to cost of sales |
|
|
8,603 |
|
|
|
9,164 |
|
|
29,718 |
|
|
26,778 |
|
Purchase accounting adjustments (1) |
|
|
952 |
|
|
|
1,396 |
|
|
3,210 |
|
|
3,271 |
|
Adjusted gross margin |
|
$ |
211,844 |
|
|
$ |
145,791 |
|
|
$ |
639,245 |
|
|
$ |
389,817 |
|
Gross margin % (2) |
|
26.9 |
% |
|
25.3 |
% |
|
27.0 |
% |
|
24.5 |
% |
Adjusted gross margin %
(2) |
|
28.2 |
% |
|
27.3 |
% |
|
28.4 |
% |
|
26.5 |
% |
(1) |
Adjustments result from the application of purchase accounting for
acquisitions and represent the amount of the fair value step-up
adjustments included in cost of sales for real estate inventory
sold after the acquisition dates. |
(2) |
Calculated as a percentage of
home sales revenues. |
Adjusted Net Income and Adjusted
Earnings Per Share
Adjusted net income and adjusted earnings per
share are non-GAAP financial measures used by management as
supplemental measures in evaluating operating performance. The
Company defines adjusted net income as net income less the federal
energy efficient homes tax credits. The Company defines adjusted
earnings per share as adjusted net income divided by weighted
average shares outstanding. Management believes that the
presentation of adjusted net income and adjusted earnings per share
provides useful information to investors because such measures
isolate the impact that material retroactive tax adjustments have
on net income and earnings per share. However, because adjusted net
income and adjusted earnings per share information excludes the
federal energy efficient homes tax credits, which have real
economic effects and could impact results, the utility of adjusted
net income and adjusted earnings per share as measures of operating
performance may be limited. In addition, other companies may not
calculate adjusted net income and adjusted earnings per share in
the same manner that the Company does. Accordingly, adjusted net
income and adjusted earnings per share information should be
considered only as a supplement to net income and earnings per
share information as measures of the Company’s performance.
The following table reconciles adjusted net
income and adjusted earnings per share to net income and earnings
per share, respectively, which are the GAAP measures that
management believes to be most directly comparable (dollars in
thousands):
|
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Numerator (in thousands): |
|
|
|
|
|
|
|
|
Net income (Numerator for basic and diluted earnings per
share) |
|
$ |
100,550 |
|
|
$ |
89,004 |
|
|
$ |
318,342 |
|
|
$ |
187,467 |
|
Retroactive federal energy efficient homes tax credits |
|
— |
|
|
27,141 |
|
|
— |
|
|
26,595 |
|
Adjusted net income (Numerator for adjusted basic and diluted
earnings per share) |
|
$ |
100,550 |
|
|
$ |
61,863 |
|
|
$ |
318,342 |
|
|
$ |
160,872 |
|
Denominator: |
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding |
|
24,508,134 |
|
|
25,089,424 |
|
|
24,766,260 |
|
|
25,162,162 |
|
Effect of dilutive securities: |
|
|
|
|
|
|
|
|
Stock-based compensation units |
|
316,186 |
|
|
167,629 |
|
|
263,901 |
|
|
166,393 |
|
Diluted weighted average shares outstanding |
|
24,824,320 |
|
|
25,257,053 |
|
|
25,030,161 |
|
|
25,328,555 |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
4.10 |
|
|
$ |
3.55 |
|
|
$ |
12.85 |
|
|
$ |
7.45 |
|
Diluted earnings per
share |
|
$ |
4.05 |
|
|
$ |
3.52 |
|
|
$ |
12.72 |
|
|
$ |
7.40 |
|
|
|
|
|
|
|
|
|
|
Adjusted basic earnings per
share |
|
$ |
4.10 |
|
|
$ |
2.47 |
|
|
$ |
12.85 |
|
|
$ |
6.39 |
|
Adjusted diluted earnings per
share |
|
$ |
4.05 |
|
|
$ |
2.45 |
|
|
$ |
12.72 |
|
|
$ |
6.35 |
|
Home Sales Revenues, Home Closings, Average Sales Price
Per Home Closed (ASP), Average Community Count and Average Monthly
Absorption Rates by Reportable Segment
(Revenues in thousands,
unaudited)
|
|
Three Months Ended September 30, 2021 |
|
|
Revenues |
|
Home Closings |
|
ASP |
|
Average Community Count |
|
AverageMonthlyAbsorption
Rate |
Central |
|
$ |
287,878 |
|
|
1,072 |
|
|
$ |
268,543 |
|
|
34.7 |
|
|
10.3 |
|
Southeast |
|
146,166 |
|
|
551 |
|
|
265,274 |
|
|
24.0 |
|
|
7.7 |
|
Northwest |
|
148,515 |
|
|
325 |
|
|
456,969 |
|
|
12.3 |
|
|
8.8 |
|
West |
|
90,592 |
|
|
248 |
|
|
365,290 |
|
|
12.7 |
|
|
6.5 |
|
Florida |
|
78,457 |
|
|
303 |
|
|
258,934 |
|
|
19.0 |
|
|
5.3 |
|
Total |
|
$ |
751,608 |
|
|
2,499 |
|
|
$ |
300,764 |
|
|
102.7 |
|
|
8.1 |
|
|
|
Three Months Ended September 30, 2020 |
|
|
Revenues |
|
Home Closings |
|
ASP |
|
Average Community Count |
|
AverageMonthlyAbsorption
Rate |
Central |
|
$ |
186,909 |
|
|
812 |
|
|
$ |
230,183 |
|
|
33.3 |
|
|
8.1 |
|
Southeast |
|
130,131 |
|
|
550 |
|
|
236,602 |
|
|
33.7 |
|
|
5.4 |
|
Northwest |
|
91,138 |
|
|
229 |
|
|
397,983 |
|
|
11.7 |
|
|
6.5 |
|
West |
|
62,935 |
|
|
220 |
|
|
286,068 |
|
|
12.7 |
|
|
5.8 |
|
Florida |
|
63,089 |
|
|
280 |
|
|
225,318 |
|
|
18.0 |
|
|
5.2 |
|
Total |
|
$ |
534,202 |
|
|
2,091 |
|
|
$ |
255,477 |
|
|
109.3 |
|
|
6.4 |
|
|
|
Nine Months Ended September 30, 2021 |
|
|
Revenues |
|
Home Closings |
|
ASP |
|
Average Community Count |
|
AverageMonthlyAbsorption
Rate |
Central |
|
$ |
924,591 |
|
|
3,547 |
|
|
$ |
260,668 |
|
|
36.7 |
|
|
10.7 |
|
Southeast |
|
442,431 |
|
|
1,731 |
|
|
255,593 |
|
|
25.8 |
|
|
7.5 |
|
Northwest |
|
372,903 |
|
|
876 |
|
|
425,688 |
|
|
11.1 |
|
|
8.8 |
|
West |
|
252,553 |
|
|
729 |
|
|
346,438 |
|
|
11.3 |
|
|
7.1 |
|
Florida |
|
256,595 |
|
|
1,033 |
|
|
248,398 |
|
|
19.8 |
|
|
5.8 |
|
Total |
|
$ |
2,249,073 |
|
|
7,916 |
|
|
$ |
284,117 |
|
|
104.7 |
|
|
8.4 |
|
|
|
Nine Months Ended September 30, 2020 |
|
|
Revenues |
|
Home Closings |
|
ASP |
|
Average Community Count |
|
Average MonthlyAbsorption
Rate |
Central |
|
$ |
520,608 |
|
|
2,300 |
|
|
$ |
226,351 |
|
|
33.8 |
|
|
7.6 |
|
Southeast |
|
347,155 |
|
|
1,512 |
|
|
229,600 |
|
|
34.0 |
|
|
4.9 |
|
Northwest |
|
249,455 |
|
|
655 |
|
|
380,847 |
|
|
11.8 |
|
|
6.2 |
|
West |
|
182,012 |
|
|
692 |
|
|
263,023 |
|
|
14.2 |
|
|
5.4 |
|
Florida |
|
171,301 |
|
|
772 |
|
|
221,892 |
|
|
17.6 |
|
|
4.9 |
|
Total |
|
$ |
1,470,531 |
|
|
5,931 |
|
|
$ |
247,940 |
|
|
111.3 |
|
|
5.9 |
|
Owned and Controlled Lots
The table below shows (i) home closings by
reportable segment for the nine months ended September 30,
2021 and (ii) owned or controlled lots by reportable segment as of
September 30, 2021.
|
|
Nine Months Ended September 30, 2021 |
|
As of September 30, 2021 |
Reportable Segment |
|
Home Closings |
|
Owned (1) |
|
Controlled |
|
Total |
Central |
|
3,547 |
|
|
19,034 |
|
|
17,506 |
|
|
36,540 |
|
Southeast |
|
1,731 |
|
|
12,291 |
|
|
9,037 |
|
|
21,328 |
|
Northwest |
|
876 |
|
|
4,055 |
|
|
5,626 |
|
|
9,681 |
|
West |
|
729 |
|
|
5,634 |
|
|
5,958 |
|
|
11,592 |
|
Florida |
|
1,033 |
|
|
3,160 |
|
|
5,211 |
|
|
8,371 |
|
Total |
|
7,916 |
|
|
44,174 |
|
|
43,338 |
|
|
87,512 |
|
(1) |
Of
the 44,174 owned lots as of September 30, 2021, 32,250 were
raw/under development lots and 11,924 were finished lots, including
568 completed homes, including information centers, and 4,014 homes
in progress. |
Backlog Data
As of the dates set forth below, the Company’s
net orders, cancellation rate and ending backlog homes and value
were as follows (dollars in thousands, unaudited):
Backlog
Data |
|
Nine Months Ended September 30, |
2021 (4) |
|
2020 (5) |
Net orders (1) |
|
8,044 |
|
|
8,278 |
|
Cancellation rate (2) |
|
18.8 |
% |
|
20.6 |
% |
Ending
backlog – homes (3) |
|
3,090 |
|
|
3,580 |
|
Ending backlog – value (3) |
|
$ |
959,786 |
|
|
$ |
932,664 |
|
(1) |
Net orders are new (gross) orders for the purchase of homes during
the period, less cancellations of existing purchase contracts
during the period. |
(2) |
Cancellation rate for a period is the total number of purchase
contracts cancelled during the period divided by the total new
(gross) orders for the purchase of homes during the period. |
(3) |
Ending backlog consists of homes at the end of the period that are
under a purchase contract that has been signed by homebuyers who
have met preliminary financing criteria but have not yet closed and
wholesale contracts for which vertical construction is generally
set to occur within the next six to twelve months. Ending backlog
is valued at the contract amount. |
(4) |
As of September 30, 2021, the Company had 563 units related to bulk
sales agreements associated with its wholesale business. |
(5) |
As of September 30, 2020, the Company had 821 units related to bulk
sales agreements associated with its wholesale business. |
CONTACT: |
Joshua D.
Fattor |
|
Vice President of Investor Relations |
|
(281) 210-2586 |
|
investorrelations@lgihomes.com |
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