LGI Homes, Inc. (NASDAQ: LGIH) today announced financial results
for the fourth quarter and year ended December 31, 2021.
Fourth Quarter 2021 Highlights and
Comparisons to Fourth Quarter 2020
- Net income
decreased 18.4% to $111.3 million, or $4.61 basic EPS and $4.53
diluted EPS
- Net Income before
income taxes decreased 13.9% to $143.4 million
- Home sales revenues
decreased 10.7% to $801.1 million
- Home closed
decreased 25.9% to 2,526 homes
- Average sales price
increased 20.4% to $317,132
- Gross margin as a
percentage of homes sales revenues decreased 70 basis points to
26.4%
- Adjusted gross
margin* as a percentage of home sales revenues decreased 120 basis
points to 27.6%
Full Year 2021 Highlights and
Comparisons to Full Year 2020
- Net Income
increased 32.6% to $429.6 million, or $17.46 basic EPS and $17.25
diluted EPS
- Net income before
income taxes increased 47.6% to $542.8 million
- Home sales revenues
increased 28.8% to $3.1 billion
- Home closings
increased 11.8% to 10,442 homes
- Average sales price
increased 15.2% to $292,104
- Gross margin as a
percentage of homes sales revenues increased 130 basis points to
26.8%
- Adjusted gross
margin* as a percentage of home sales revenues increased 80 basis
points to 28.2%
- Owned lots
increased to 54,867 and controlled lots increased to 36,978 for
total owned and controlled lots of 91,845 at December 31,
2021
- Active selling
communities at December 31, 2021 decreased 12.9% to 101
- Ending backlog of
2,055 homes at December 31, 2021, a decrease of 30.7%
- Ending backlog
Value of $659.2 million at December 31, 2021, a decrease of
15.0%
*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
- 1,288,563 shares of
common stock repurchased during the year ended December 31,
2021 at an average price per share of $150.39 for an aggregate
amount of $193.8 million
- Total liquidity of
$371.8 million at December 31, 2021, including cash and
cash equivalents of $50.5 million and $321.3 million of
availability under the Company’s revolving credit facility
- Net debt to
capitalization of 35.1% at December 31, 2021
Management Comments
“Our results in the fourth quarter capped off
the best year in our Company’s history,” stated Eric Lipar, Chief
Executive Officer and Chairman of the Board. “During the fourth
quarter, we closed 2,526 homes, resulting in record-breaking full
year closings of 10,442 homes and revenue of $3.1 billion, making
2021 our eighth consecutive year of double-digit closings and top
line growth. We also set a new record of 8.3 closings per
community, per month.
“Our ability to translate our closings growth
and industry-leading absorptions into consistent profitability
continues to differentiate our business. We delivered a full year
adjusted gross margin of 28.2%, an increase of 80 basis points and
an all-time Company record. Pre-tax income increased 47.6%
year-over-year and our pre-tax net income margin was a record
17.8%. Finally, our net income increased 32.6% over the prior year,
driving return on equity of 33.9%, a 125 basis point increase over
2020.
“During the year, we managed through numerous
headwinds including input price volatility, product delays and
labor shortages. As a result, our construction and land development
timelines extended, slowing our pace of deliveries and delaying the
availability of new and replacement communities. However, despite
home sales price increases and higher interest rates, fundamentals
remain strong and affordability has not had a material impact on
the strength of demand in our markets. Given our experience to
date, we expect these dynamics to continue throughout 2022 and the
full year guidance we are providing reflects this outlook.”
Mr. Lipar concluded, “With significant momentum
coming out of 2021, LGI Homes is well-positioned to deliver another
year of strong results and value creation for our stockholders
while continuing to execute on our long-term goal of becoming a top
five builder.”
2021 Fourth Quarter Results
Home closings during the fourth quarter of 2021
totaled 2,526, a decrease of 25.9% from 3,408 home closings during
the fourth quarter of 2020.
At the end of the fourth quarter, active selling
communities decreased to 101, down from 116 communities at the end
of the fourth quarter of 2020.
Home sales revenues for the fourth quarter of
2021 were $801.1 million, a decrease of $96.3 million, or 10.7%,
over the fourth quarter of 2020. The decrease in home sales
revenues is primarily due to a 25.9% decrease in homes closed, an
8.8% decrease in average community count and was partially offset
by an increase in the average sales price per home closed during
the fourth quarter of 2021.
The average sales price per home closed for the
fourth quarter of 2021 was $317,132, an increase of $53,811, or
20.4%, over the fourth quarter of 2020. This increase in the
average sales price per home closed was primarily due to a
favorable pricing environment, higher price points in certain
markets and changes in product mix.
Gross margin as a percentage of home sales
revenues for the fourth quarter of 2021 was 26.4% as compared to
27.1% for the fourth quarter of 2020. Adjusted gross margin
(non-GAAP) as a percentage of home sales revenues for the fourth
quarter of 2021 was 27.6% as compared to 28.8% for the fourth
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.
Net income for the fourth quarter of 2021 was
$111.3 million, or $4.61 per basic share and $4.53 per diluted
share, a decrease of $25.1 million, or 18.4%, from $136.4 million,
or $5.45 per basic share and 5.34 per diluted share, for the fourth
quarter of 2020.
Full Year 2021 Results
Home closings for the year ended December 31,
2021 totaled 10,442, an increase of 11.8%, from 9,339 home closings
during the year ended December 31, 2020. The overall increase in
home closings was primarily driven by strong demand in all
reportable segments during the year ended December 31, 2021 as
compared to the year ended December 31, 2020.
Home sales revenues for the year ended
December 31, 2021 were $3.1 billion, an increase of $682.2
million, or 28.8%, from $2.4 billion for the year ended
December 31, 2020. The increase in home sales revenues is
primarily due to an 11.8% increase in homes closed and an increase
in the average sales price per home closed during the year ended
December 31, 2021 as compared to the year ended
December 31, 2020.
The average sales price per home closed for the
year ended December 31, 2021 was $292,104, an increase of $38,551,
or 15.2%, over the year ended December 31, 2020. This increase in
the average sales price per home closed was 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 year ended December 31, 2021 was 26.8% as compared
to 25.5% for the year ended December 31, 2020. Adjusted gross
margin (non-GAAP) as a percentage of home sales revenues for the
year ended December 31, 2021 was 28.2% as compared to 27.4% for the
year ended December 31, 2020. This increase in gross margin as a
percentage of home sales revenues during the year ended
December 31, 2021 as compared to the year ended
December 31, 2020 was primarily due to raising prices higher
than increases in input costs. Please see “Non-GAAP Measures” for a
reconciliation of adjusted gross margin (non-GAAP) to gross margin,
the most comparable GAAP measure.
Net income for the year ended December 31, 2021
was $429.6 million, or $17.46 per basic share and $17.25 per
diluted share, an increase of $105.8 million, or 32.6%, from $323.9
million, or $12.89 per basic share and $12.76 per diluted share,
for the year ended December 31, 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
year ended December 31, 2020.
Stock Repurchase Program
On February 11, 2022, the Company’s Board of
Directors increased the authorization for the repurchase of shares
of the Company’s common stock by $200.0 million. During the three
months ended December 31, 2021, the Company repurchased 378,525
shares of its common stock for $56.1 million, bringing the
remaining authorization under the Company’s stock repurchase
program to $106.6 million as of December 31, 2021. The Board’s
approval increases the aggregate amount available for stock
repurchases to $306.6 million as of February 11, 2022. The timing,
amount and other terms and conditions of any repurchases of shares
of the Company’s common stock under its stock repurchase program
will be determined by management at its discretion based on a
variety of factors, including the market price of the common stock,
corporate considerations, general market and economic conditions
and legal requirements. The Company’s stock repurchase program may
be modified, discontinued or suspended at any time.
Outlook
Subject to the caveats in the Forward-Looking
Statements section of this press release, the Company is providing
the following guidance for the full year 2022. The Company
believes:
- Home closings will
be between 9,000 and 10,000
- Active selling
communities at the end of 2022 will be between 110 and 120
- Average sales price
per home closed will be between $315,000 and $330,000
- Gross margin as a
percentage of home sales revenues will be between 26.5% and
28.5%
- Adjusted gross
margin (non-GAAP) as a percentage of home sales revenues will be
between 28.0% and 30.0% with capitalized interest accounting for
substantially all the difference between gross margin and adjusted
gross margin
- SG&A as a
percentage of home sales revenues will be between 9.0% and
10.0%
- Effective tax rate
will be between 23.5% and 24.5%
This outlook assumes that general economic
conditions, including input costs, materials, product and labor
availability, interest rates and mortgage availability, in the
remainder of 2022 are similar to those experienced to date in 2022
and that the average sales price per home closed, construction
costs, availability of land, land development costs and overall
absorption rates in the remainder of 2022 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 COVID-19 governmental restrictions on land development,
home construction or home sales 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, February 15, 2022 (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 “1893201”.
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 2022 home
closings, year-end active selling communities, gross margin as a
percentage of home sales revenues, average sales price per home
closed, 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,
suppliers 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 (“SEC”), including the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2021 when it is filed with the SEC. 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 and per share data)
|
|
December 31, |
|
|
|
2021 |
|
|
|
2020 |
|
ASSETS |
|
|
|
|
Cash and cash equivalents |
|
$ |
50,514 |
|
|
$ |
35,942 |
|
Accounts receivable |
|
|
57,909 |
|
|
|
115,939 |
|
Real estate inventory |
|
|
2,085,904 |
|
|
|
1,569,489 |
|
Pre-acquisition costs and deposits |
|
|
40,702 |
|
|
|
37,213 |
|
Property and equipment, net |
|
|
16,944 |
|
|
|
3,618 |
|
Other assets |
|
|
81,676 |
|
|
|
44,882 |
|
Deferred tax assets, net |
|
|
6,198 |
|
|
|
6,986 |
|
Goodwill |
|
|
12,018 |
|
|
|
12,018 |
|
Total assets |
|
$ |
2,351,865 |
|
|
$ |
1,826,087 |
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
Accounts payable |
|
$ |
14,172 |
|
|
$ |
13,676 |
|
Accrued expenses and other liabilities |
|
|
136,609 |
|
|
|
135,008 |
|
Notes payable |
|
|
805,236 |
|
|
|
538,398 |
|
Total liabilities |
|
|
956,017 |
|
|
|
687,082 |
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
EQUITY |
|
|
|
|
Common stock, par value $0.01, 250,000,000 shares authorized,
26,963,915 shares issued and 23,917,359 shares outstanding as of
December 31, 2021 and 26,741,554 shares issued and 24,983,561
shares outstanding as of December 31, 2020 |
|
|
269 |
|
|
|
267 |
|
Additional paid-in capital |
|
|
291,577 |
|
|
|
270,598 |
|
Retained earnings |
|
|
1,363,922 |
|
|
|
934,277 |
|
Treasury stock, at cost, 3,046,556 shares and 1,757,993 shares,
respectively |
|
|
(259,920 |
) |
|
|
(66,137 |
) |
Total equity |
|
|
1,395,848 |
|
|
|
1,139,005 |
|
Total liabilities and equity |
|
$ |
2,351,865 |
|
|
$ |
1,826,087 |
|
LGI HOMES,
INC.CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)(In
thousands, except share and per share data)
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Home sales revenues |
|
$ |
801,076 |
|
|
$ |
897,398 |
|
|
$ |
3,050,149 |
|
|
$ |
2,367,929 |
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
589,359 |
|
|
|
654,069 |
|
|
|
2,232,115 |
|
|
|
1,764,832 |
|
Selling expenses |
|
|
42,555 |
|
|
|
50,173 |
|
|
|
170,005 |
|
|
|
148,366 |
|
General and
administrative |
|
|
27,852 |
|
|
|
27,599 |
|
|
|
100,331 |
|
|
|
90,021 |
|
Operating income |
|
|
141,310 |
|
|
|
165,557 |
|
|
|
547,698 |
|
|
|
364,710 |
|
Loss on extinguishment of
debt |
|
|
— |
|
|
|
— |
|
|
|
13,976 |
|
|
|
— |
|
Other income, net |
|
|
(2,074 |
) |
|
|
(991 |
) |
|
|
(9,053 |
) |
|
|
(3,139 |
) |
Net income before income
taxes |
|
|
143,384 |
|
|
|
166,548 |
|
|
|
542,775 |
|
|
|
367,849 |
|
Income tax provision |
|
|
32,081 |
|
|
|
30,120 |
|
|
|
113,130 |
|
|
|
43,954 |
|
Net income |
|
$ |
111,303 |
|
|
$ |
136,428 |
|
|
$ |
429,645 |
|
|
$ |
323,895 |
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
4.61 |
|
|
$ |
5.45 |
|
|
$ |
17.46 |
|
|
$ |
12.89 |
|
Diluted |
|
$ |
4.53 |
|
|
$ |
5.34 |
|
|
$ |
17.25 |
|
|
$ |
12.76 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
24,142,096 |
|
|
|
25,054,454 |
|
|
|
24,607,231 |
|
|
|
25,135,077 |
|
Diluted |
|
|
24,564,428 |
|
|
|
25,531,968 |
|
|
|
24,908,991 |
|
|
|
25,380,560 |
|
|
|
|
|
|
|
|
|
|
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 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 the Company’s 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 Ended December 31, |
|
Year Ended December 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Home sales revenues |
|
$ |
801,076 |
|
|
$ |
897,398 |
|
|
$ |
3,050,149 |
|
|
$ |
2,367,929 |
|
Cost of sales |
|
|
589,359 |
|
|
|
654,069 |
|
|
|
2,232,115 |
|
|
|
1,764,832 |
|
Gross margin |
|
|
211,717 |
|
|
|
243,329 |
|
|
|
818,034 |
|
|
|
603,097 |
|
Capitalized interest charged
to cost of sales |
|
|
7,828 |
|
|
|
13,603 |
|
|
|
37,546 |
|
|
|
40,381 |
|
Purchase accounting
adjustments (1) |
|
|
1,754 |
|
|
|
1,601 |
|
|
|
4,964 |
|
|
|
4,872 |
|
Adjusted gross margin |
|
$ |
221,299 |
|
|
$ |
258,533 |
|
|
$ |
860,544 |
|
|
$ |
648,350 |
|
Gross margin % (2) |
|
|
26.4 |
% |
|
|
27.1 |
% |
|
|
26.8 |
% |
|
|
25.5 |
% |
Adjusted gross margin %
(2) |
|
|
27.6 |
% |
|
|
28.8 |
% |
|
|
28.2 |
% |
|
|
27.4 |
% |
(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. |
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 December 31, 2021 |
|
|
Revenues |
|
Home Closings |
|
ASP |
|
Average Community Count |
|
AverageMonthlyAbsorption Rate |
Central |
|
$ |
328,191 |
|
1,118 |
|
$ |
293,552 |
|
36.0 |
|
10.4 |
Southeast |
|
|
152,311 |
|
548 |
|
|
277,940 |
|
25.0 |
|
7.3 |
Northwest |
|
|
137,594 |
|
290 |
|
|
474,462 |
|
11.0 |
|
8.8 |
West |
|
|
98,666 |
|
266 |
|
|
370,925 |
|
11.7 |
|
7.6 |
Florida |
|
|
84,314 |
|
304 |
|
|
277,349 |
|
20.0 |
|
5.1 |
Total |
|
$ |
801,076 |
|
2,526 |
|
$ |
317,132 |
|
103.7 |
|
8.1 |
|
|
Three Months Ended December 31, 2020 |
|
|
Revenues |
|
Home Closings |
|
ASP |
|
Average Community Count |
|
AverageMonthlyAbsorption Rate |
Central |
|
$ |
329,767 |
|
1,354 |
|
$ |
243,550 |
|
37.0 |
|
12.2 |
Southeast |
|
|
212,071 |
|
870 |
|
|
243,760 |
|
32.0 |
|
9.1 |
Northwest |
|
|
140,068 |
|
345 |
|
|
405,994 |
|
12.4 |
|
9.3 |
West |
|
|
104,118 |
|
351 |
|
|
296,632 |
|
13.0 |
|
9.0 |
Florida |
|
|
111,374 |
|
488 |
|
|
228,225 |
|
19.3 |
|
8.4 |
Total |
|
$ |
897,398 |
|
3,408 |
|
$ |
263,321 |
|
113.7 |
|
10.0 |
|
|
Year Ended December 31, 2021 |
|
|
Revenues |
|
Home Closings |
|
ASP |
|
Average Community Count |
|
AverageMonthlyAbsorption Rate |
Central |
|
$ |
1,252,782 |
|
4,665 |
|
$ |
268,549 |
|
36.5 |
|
10.7 |
Southeast |
|
|
594,742 |
|
2,279 |
|
|
260,966 |
|
25.6 |
|
7.4 |
Northwest |
|
|
510,497 |
|
1,166 |
|
|
437,819 |
|
11.1 |
|
8.8 |
West |
|
|
351,219 |
|
995 |
|
|
352,984 |
|
11.4 |
|
7.3 |
Florida |
|
|
340,910 |
|
1,337 |
|
|
254,981 |
|
19.8 |
|
5.6 |
Total |
|
$ |
3,050,149 |
|
10,442 |
|
$ |
292,104 |
|
104.4 |
|
8.3 |
|
|
Year Ended December 31, 2020 |
|
|
Revenues |
|
Home Closings |
|
ASP |
|
Average Community Count |
|
Average MonthlyAbsorption Rate |
Central |
|
$ |
850,375 |
|
3,654 |
|
$ |
232,724 |
|
34.6 |
|
8.8 |
Southeast |
|
|
559,226 |
|
2,382 |
|
|
234,772 |
|
33.5 |
|
5.9 |
Northwest |
|
|
389,523 |
|
1,000 |
|
|
389,523 |
|
11.9 |
|
7.0 |
West |
|
|
286,130 |
|
1,043 |
|
|
274,334 |
|
13.9 |
|
6.2 |
Florida |
|
|
282,675 |
|
1,260 |
|
|
224,345 |
|
18.0 |
|
5.8 |
Total |
|
$ |
2,367,929 |
|
9,339 |
|
$ |
253,553 |
|
111.9 |
|
7.0 |
Owned and Controlled Lots
The table below shows (i) home closings by
reportable segment for the year ended December 31, 2021 and
(ii) the Company’s owned or controlled lots by reportable segment
as of December 31, 2021.
|
|
Year Ended December 31, 2021 |
|
As of December 31, 2021 |
Reportable Segment |
|
Home Closings |
|
Owned (1) |
|
Controlled |
|
Total |
Central |
|
4,665 |
|
23,034 |
|
14,761 |
|
37,795 |
Southeast |
|
2,279 |
|
15,386 |
|
5,616 |
|
21,002 |
Northwest |
|
1,166 |
|
5,301 |
|
3,291 |
|
8,592 |
West |
|
995 |
|
6,907 |
|
8,325 |
|
15,232 |
Florida |
|
1,337 |
|
4,239 |
|
4,985 |
|
9,224 |
Total |
|
10,442 |
|
54,867 |
|
36,978 |
|
91,845 |
(1) |
Of the 54,867
owned lots as of December 31, 2021, 42,743 were raw/under
development lots and 12,124 were finished lots. |
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):
|
|
Year Ended December 31, |
2021 (4) |
|
2020 (5) |
|
2019 (6) |
Net orders (1) |
|
|
9,533 |
|
|
|
11,070 |
|
|
|
8,299 |
|
Cancellation rate (2) |
|
|
19.3 |
% |
|
|
21.6 |
% |
|
|
20.6 |
% |
Ending backlog - homes
(3) |
|
|
2,055 |
|
|
|
2,964 |
|
|
|
1,233 |
|
Ending backlog - value
(3) |
|
$ |
659,234 |
|
|
$ |
775,468 |
|
|
$ |
290,438 |
|
(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 retail 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 December 31, 2021, the Company had 481 units related to
bulk sales agreements associated with its wholesale business. |
(5) |
As of December 31, 2020, the Company had 1,139 units related to
bulk sales agreements associated with its wholesale business. |
(6) |
As of December 31, 2019, the Company had 481 units related to
bulk sales agreements associated with its wholesale business, of
which 117 units and values are not included in the table
above. |
CONTACT: Joshua D. FattorVice President of Investor
Relations281-210-2586investorrelations@lgihomes.com
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