LGI Homes, Inc. (NASDAQ: LGIH) today announced financial results
for the fourth quarter and year ended December 31, 2020.
Fourth Quarter 2020 Highlights and
Comparisons to Fourth Quarter 2019
- Net Income
increased 110.3% to $136.4 million, or $5.45 Basic EPS and $5.34
Diluted EPS
- Adjusted Net
Income* of $132.2 million, or $5.28 Adjusted Basic EPS* and $5.18
Adjusted Diluted EPS*
- Net Income Before
Income Taxes increased 96.2% to $166.5 million
- 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
- Gross Margin as a
Percentage of Homes Sales Revenues increased 360 basis points to
27.1%
- Adjusted Gross
Margin* as a Percentage of Home Sales Revenues increased 330 basis
points to 28.8%
- Active Selling
Communities at December 31, 2020 increased 9.4% to 116
Full Year 2020 Highlights and
Comparisons to Full Year 2019
- Net Income
increased 81.3% to $323.9 million, or $12.89 Basic EPS and $12.76
Diluted EPS
- Adjusted Net
Income* of $294.2 million, or $11.70 Adjusted Basic EPS* and $11.59
Adjusted Diluted EPS*
- Net Income Before
Income Taxes increased 58.7% to $367.8 million
- Home Sales Revenues
increased 28.8% to $2.4 billion
- Home Closings
increased 21.4% to 9,339 homes
- Average Sales Price
Per Home Closed increased 6.1% to $253,553
- Gross Margin as a
Percentage of Homes Sales Revenues increased 180 basis points to
25.5%
- Adjusted Gross
Margin* as a Percentage of Home Sales Revenues increased 160 basis
points to 27.4%
- Owned lots
increased to 35,268 and Controlled lots increased to 26,236 for
total Owned and Controlled lots of 61,504 at December 31,
2020
- Ending Backlog of
2,964 homes at December 31, 2020, an increase of 140.4%
- Ending Backlog
Value of $775.5 million at December 31, 2020, an increase of
167.0%
*Non-GAAP
Please see “Non-GAAP Measures” for a
reconciliation of Adjusted Net Income and Adjusted Earnings Per
Share (non-GAAP measures) to Net Income and Earnings Per Share, the
most directly comparable GAAP measures, and Adjusted Gross Margin
(a non-GAAP measure) to Gross Margin, the most directly comparable
GAAP measure.
Balance Sheet
- 718,993 shares of
common stock repurchased during the year ended December 31,
2020 at an average price per share of $66.84 for an aggregate
amount of $48.1 million
- Total liquidity of
$428.4 million at December 31, 2020 including cash and cash
equivalents of $35.9 million and $392.5 million of availability
under the Company’s revolving credit facility
- Net debt to
capitalization of 30.6% at December 31, 2020, compared to 43.6% at
December 31, 2019
Management Comments
“LGI Homes delivered another record-breaking
quarter, capping off the best year in our Company’s history,”
stated Eric Lipar, the Company’s Chief Executive Officer and
Chairman of the Board. “During the fourth quarter we closed 3,408
homes, an increase of over 35% year-over-year. For the full year,
we closed a record-breaking 9,339 homes and generated approximately
$2.4 billion in revenue making 2020 our seventh consecutive year of
double-digit top line growth.
“Most importantly, we achieved this growth while
delivering record profitability. During the year, we increased our
industry-leading gross margin 180 basis points to 25.5% and our
adjusted gross margin 160 basis points to 27.4%. Our full year
pre-tax net income margin was 15.5% and our net income increased
over 81% to $323.9 million. As a result of our strong performance
throughout 2020, we reduced our net debt to capitalization ratio to
30.6% and increased our return on equity to 32.6%.”
Mr. Lipar concluded, “Our outstanding results
are a testament to the talent and dedication of our people.
Together we met the challenges of the past year and successfully
delivered on our shared commitment to make our customers’ dream of
homeownership a reality. Their dedication, passion and
professionalism have positioned us to achieve our goals in 2021,
deliver market leading returns for our shareholders and continue on
our path to becoming a top five builder.”
2020 Fourth Quarter Results
Home closings during the fourth quarter of 2020
totaled 3,408, an increase of 35.5% from 2,515 home closings during
the fourth quarter of 2019.
At the end of the fourth quarter, active selling
communities increased to 116, up from 106 communities at the end of
the fourth quarter of 2019.
Home sales revenues for the fourth quarter of
2020 were $897.4 million, an increase of $291.7 million, or 48.2%,
over the fourth quarter of 2019. The increase in home sales
revenues is primarily due to a 35.5% increase in homes closed, a 9%
increase in average community count and an increase in the average
sales price per home closed during the fourth quarter of 2020.
The average sales price per home closed for the
fourth quarter of 2020 was $263,321, an increase of $22,506, or
9.3%, over the fourth quarter of 2019. This increase in the average
sales price per home closed was primarily due to a favorable
pricing environment, higher price points in certain new markets and
changes in product mix.
Gross margin as a percentage of home sales
revenues for the fourth quarter of 2020 was 27.1% as compared to
23.5% for the fourth quarter of 2019. Adjusted gross margin
(non-GAAP) as a percentage of home sales revenues for the fourth
quarter of 2020 was 28.8% as compared to 25.5% for the fourth
quarter of 2019. The increase in gross margin and adjusted gross
margin as a percentage of home sales revenues was primarily driven
by a favorable pricing environment, operating leverage obtained and
product mix in the fourth quarter of 2020 as compared to the fourth
quarter of 2019. 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 2020 was
$136.4 million, or $5.45 per basic share and $5.34 per diluted
share, an increase of $71.6 million, or 110.3%, from $64.9 million,
or $2.69 per basic share and $2.52 per diluted share, for the
fourth quarter of 2019. The increase in net income is primarily
attributed to operating leverage realized from the increase in home
sales revenues, higher average sales price per home closed during
the fourth quarter of 2020 as compared to the fourth quarter of
2019, as well as $8.3 million of federal energy efficient
homes tax credits recognized during the fourth quarter of 2020.
Full Year 2020 Results
Home closings for the year ended December 31,
2020 totaled 9,339, an increase of 21.4%, from 7,690 home closings
during the year ended December 31, 2019.
Home sales revenues for the year ended December
31, 2020 were $2.4 billion, an increase of $529.8 million, or
28.8%, over the year ended December 31, 2019. The increase in home
sales revenues is primarily due to a 21.4% increase in homes
closed, a 16.8% increase in average community count and an increase
in the average sales price per home closed during the year ended
December 31, 2020.
The average sales price per home closed for the
year ended December 31, 2020 was $253,553, an increase of $14,521,
or 6.1%, over the year ended December 31, 2019. This increase in
the average sales price per home closed was primarily due to a
favorable pricing environment, increased closings at higher price
points in certain markets and changes in product mix.
Gross margin as a percentage of home sales
revenues for the year ended December 31, 2020 was 25.5% as compared
to 23.7% for the year ended December 31, 2019. Adjusted gross
margin (non-GAAP) as a percentage of home sales revenues for the
year ended December 31, 2020 was 27.4% as compared to 25.8% for the
year ended December 31, 2019. The increase in gross margin and
adjusted gross margin as a percentage of home sales revenues is
primarily due to an increase in homes closed with a higher average
sales price per home closed, which was primarily driven by a
favorable pricing environment, operating leverage obtained and
product mix, partially offset by an increase in wholesale home
closings as a percentage of total home closings in the year ended
December 31, 2020 as compared to the year ended December 31, 2019.
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, 2020
was $323.9 million, or $12.89 per basic share and $12.76 per
diluted share, an increase of $145.3 million, or 81.3%, from $178.6
million, or $7.70 per basic share and $7.02 per diluted share, for
the year ended December 31, 2019. The increase in net income is
primarily due to overall stronger gross margins driven by the 28.8%
increase in home sales revenues, 6.1% higher average sales price
per home closed during the year ended December 31, 2020 as compared
to the year ended December 31, 2019 and $41.2 million of tax
benefits relating to the federal energy efficient homes tax credits
recognized during the year ended December 31, 2020.
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 2021. The Company
believes:
- 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
- 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 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 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 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 23, 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 “1655901”.
About LGI Homes, Inc.
Headquartered in The Woodlands, Texas, LGI
Homes, Inc. engages in the design, construction and sale of homes
in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North
Carolina, South Carolina, Washington, Tennessee, Minnesota,
Oklahoma, Alabama, California, Oregon, Nevada, West Virginia,
Virginia and Pennsylvania. Since 2018, LGI Homes has been ranked as
the 10th largest residential builder in the United States based on
units closed. The Company has a notable legacy of more than 17
years of homebuilding operations, over which time it has closed
more than 45,000 homes. For more information about the Company and
its new home developments, 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, gross margin as a
percentage of home sales revenues, adjusted gross margin as a
percentage of homes sales revenues, average sales price per home
closed, 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, 2019,
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 each of the Company’s Quarterly Reports on
Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and
September 30, 2020, 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,
2020 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 data)
|
|
December 31, |
|
|
2020 |
|
2019 |
ASSETS |
|
|
|
|
Cash and cash equivalents |
|
$ |
35,942 |
|
|
$ |
38,345 |
|
Accounts receivable |
|
115,939 |
|
|
56,390 |
|
Real estate inventory |
|
1,569,489 |
|
|
1,499,624 |
|
Pre-acquisition costs and deposits |
|
37,213 |
|
|
37,244 |
|
Property and equipment, net |
|
3,618 |
|
|
1,632 |
|
Other assets |
|
44,882 |
|
|
16,241 |
|
Deferred tax assets, net |
|
6,986 |
|
|
4,621 |
|
Goodwill |
|
12,018 |
|
|
12,018 |
|
Total assets |
|
$ |
1,826,087 |
|
|
$ |
1,666,115 |
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
Accounts payable |
|
$ |
13,676 |
|
|
$ |
12,495 |
|
Accrued expenses and other liabilities |
|
135,008 |
|
|
117,868 |
|
Notes payable |
|
538,398 |
|
|
690,559 |
|
Total liabilities |
|
687,082 |
|
|
820,922 |
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
EQUITY |
|
|
|
|
Common stock, par value $0.01, 250,000,000 shares authorized,
26,741,554 shares issued and 24,983,561 shares outstanding as of
December 31, 2020 and 26,398,409 shares issued and 25,359,409
shares outstanding as of December 31, 2019 |
|
267 |
|
|
264 |
|
Additional paid-in capital |
|
270,598 |
|
|
252,603 |
|
Retained earnings |
|
934,277 |
|
|
610,382 |
|
Treasury stock, at cost, 1,757,993 shares and 1,039,000 shares,
respectively |
|
(66,137 |
) |
|
(18,056 |
) |
Total equity |
|
1,139,005 |
|
|
845,193 |
|
Total liabilities and equity |
|
$ |
1,826,087 |
|
|
$ |
1,666,115 |
|
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, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Home sales revenues |
|
$ |
897,398 |
|
|
$ |
605,649 |
|
|
$ |
2,367,929 |
|
|
$ |
1,838,154 |
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
654,069 |
|
|
463,435 |
|
|
1,764,832 |
|
|
1,401,675 |
|
Selling expenses |
|
50,173 |
|
|
37,395 |
|
|
148,366 |
|
|
131,561 |
|
General and
administrative |
|
27,599 |
|
|
20,822 |
|
|
90,021 |
|
|
77,380 |
|
Operating income |
|
165,557 |
|
|
83,997 |
|
|
364,710 |
|
|
227,538 |
|
Loss on extinguishment of
debt |
|
— |
|
|
— |
|
|
— |
|
|
169 |
|
Other income, net |
|
(991 |
) |
|
(874 |
) |
|
(3,139 |
) |
|
(4,463 |
) |
Net income before income
taxes |
|
166,548 |
|
|
84,871 |
|
|
367,849 |
|
|
231,832 |
|
Income tax provision |
|
30,120 |
|
|
20,001 |
|
|
43,954 |
|
|
53,224 |
|
Net income |
|
136,428 |
|
|
$ |
64,870 |
|
|
$ |
323,895 |
|
|
$ |
178,608 |
|
Earnings per share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
5.45 |
|
|
$ |
2.69 |
|
|
$ |
12.89 |
|
|
$ |
7.70 |
|
Diluted |
|
$ |
5.34 |
|
|
$ |
2.52 |
|
|
$ |
12.76 |
|
|
$ |
7.02 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
25,054,454 |
|
|
24,143,124 |
|
|
25,135,077 |
|
|
23,191,595 |
|
Diluted |
|
25,531,968 |
|
|
25,718,111 |
|
|
25,380,560 |
|
|
25,430,841 |
|
|
|
|
|
|
|
|
|
|
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 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, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Home sales revenues |
|
$ |
897,398 |
|
|
$ |
605,649 |
|
|
$ |
2,367,929 |
|
|
$ |
1,838,154 |
|
Cost of sales |
|
654,069 |
|
|
463,435 |
|
|
1,764,832 |
|
|
1,401,675 |
|
Gross margin |
|
243,329 |
|
|
142,214 |
|
|
603,097 |
|
|
436,479 |
|
Capitalized interest charged to cost of sales |
|
|
13,603 |
|
|
|
11,336 |
|
|
40,381 |
|
|
35,230 |
|
Purchase accounting adjustments (1) |
|
|
1,601 |
|
|
|
1,067 |
|
|
4,872 |
|
|
3,324 |
|
Adjusted gross margin |
|
$ |
258,533 |
|
|
$ |
154,617 |
|
|
$ |
648,350 |
|
|
$ |
475,033 |
|
Gross margin % (2) |
|
27.1 |
% |
|
23.5 |
% |
|
25.5 |
% |
|
23.7 |
% |
Adjusted gross margin %
(2) |
|
28.8 |
% |
|
25.5 |
% |
|
27.4 |
% |
|
25.8 |
% |
|
|
|
|
|
|
|
|
|
(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
retroactive federal energy efficient homes tax credits and 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
retroactive 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
the Company’s 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,
unaudited):
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Numerator (in thousands): |
|
|
|
|
|
|
|
|
Net income (Numerator for basic and diluted earnings per
share) |
|
$ |
136,428 |
|
$ |
64,870 |
|
$ |
323,895 |
|
$ |
178,608 |
Retroactive federal energy efficient homes tax credits |
|
4,219 |
|
— |
|
29,703 |
|
— |
Adjusted net income (Numerator for adjusted basic and diluted
earnings per share) |
|
$ |
132,209 |
|
$ |
64,870 |
|
$ |
294,192 |
|
$ |
178,608 |
Denominator: |
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding |
|
25,054,454 |
|
24,143,124 |
|
25,135,077 |
|
23,191,595 |
Diluted weighted average shares outstanding |
|
25,531,968 |
|
25,718,111 |
|
25,380,560 |
|
25,430,841 |
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
5.45 |
|
$ |
2.69 |
|
$ |
12.89 |
|
$ |
7.70 |
Diluted earnings per
share |
|
$ |
5.34 |
|
$ |
2.52 |
|
$ |
12.76 |
|
$ |
7.02 |
|
|
|
|
|
|
|
|
|
Adjusted basic earnings per
share |
|
$ |
5.28 |
|
$ |
2.69 |
|
$ |
11.70 |
|
$ |
7.70 |
Adjusted diluted earnings per
share |
|
$ |
5.18 |
|
$ |
2.52 |
|
$ |
11.59 |
|
$ |
7.02 |
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, 2020 |
|
|
Revenues |
|
|
HomeClosings |
|
|
|
ASP |
|
|
AverageCommunityCount |
|
|
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 |
|
|
Three Months Ended December 31, 2019 |
|
|
|
Revenues |
|
|
HomeClosings |
|
|
|
ASP |
|
|
AverageCommunityCount |
|
|
AverageMonthlyAbsorption
Rate |
|
Central |
$ |
217,030 |
|
|
962 |
|
|
$ |
225,603 |
|
|
32.6 |
|
|
9.8 |
|
Southeast |
126,131 |
|
|
582 |
|
|
216,720 |
|
|
28.6 |
|
|
6.8 |
|
Northwest |
96,802 |
|
|
260 |
|
|
372,315 |
|
|
13.7 |
|
|
6.3 |
|
West |
96,993 |
|
|
389 |
|
|
249,339 |
|
|
13.7 |
|
|
9.5 |
|
Florida |
68,693 |
|
|
322 |
|
|
213,332 |
|
|
15.7 |
|
|
6.9 |
|
Total |
$ |
605,649 |
|
|
2,515 |
|
|
$ |
240,815 |
|
|
104.3 |
|
|
8.0 |
|
|
|
Year Ended December 31, 2020 |
|
|
|
|
Revenues |
|
|
HomeClosings |
|
|
|
ASP |
|
|
AverageCommunityCount |
|
|
AverageMonthlyAbsorption
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 |
|
|
|
Year Ended December 31, 2019 |
|
|
|
|
Revenues |
|
|
HomeClosings |
|
|
|
ASP |
|
|
AverageCommunityCount |
|
|
AverageMonthlyAbsorption Rate |
|
Central |
|
$ |
724,981 |
|
|
3,304 |
|
|
$ |
219,425 |
|
|
33.0 |
|
|
8.3 |
|
Southeast |
|
347,817 |
|
|
1,592 |
|
|
218,478 |
|
|
24.5 |
|
|
5.4 |
|
Northwest |
|
304,294 |
|
|
827 |
|
|
367,949 |
|
|
12.4 |
|
|
5.6 |
|
West |
|
271,186 |
|
|
1,056 |
|
|
256,805 |
|
|
12.8 |
|
|
6.9 |
|
Florida |
|
189,876 |
|
|
911 |
|
|
208,426 |
|
|
13.1 |
|
|
5.8 |
|
Total |
|
$ |
1,838,154 |
|
|
7,690 |
|
|
$ |
239,032 |
|
|
95.8 |
|
|
6.7 |
|
Owned and Controlled Lots
The table below shows (i) home closings by
reportable segment for the year ended December 31, 2020 and (ii)
the Company’s owned or controlled lots by reportable segment as of
December 31, 2020.
|
|
Year EndedDecember 31,2020 |
|
As of December 31, 2020 |
Reportable Segment |
|
Home Closings |
|
Owned (1) |
|
Controlled |
|
Total |
Central |
|
3,654 |
|
|
16,124 |
|
|
10,739 |
|
|
26,863 |
|
Southeast |
|
2,382 |
|
|
10,376 |
|
|
6,992 |
|
|
17,368 |
|
Northwest |
|
1,000 |
|
|
3,036 |
|
|
3,183 |
|
|
6,219 |
|
West |
|
1,043 |
|
|
3,133 |
|
|
3,092 |
|
|
6,225 |
|
Florida |
|
1,260 |
|
|
2,599 |
|
|
2,230 |
|
|
4,829 |
|
Total |
|
9,339 |
|
|
35,268 |
|
|
26,236 |
|
|
61,504 |
|
(1) Of the 35,268 owned lots as of December 31, 2020,
22,132 were raw/under development lots and 13,136 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, |
2020 (4) |
|
2019 (5) |
|
2018 (6) |
Net orders (1) |
|
11,070 |
|
|
8,299 |
|
|
6,320 |
|
Cancellation rate (2) |
|
21.6 |
% |
|
20.6 |
% |
|
24.2 |
% |
Ending backlog - homes
(3) |
|
2,964 |
|
|
1,233 |
|
|
624 |
|
Ending backlog - value (3) |
|
$ |
775,468 |
|
|
$ |
290,438 |
|
|
$ |
156,109 |
|
(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 the Company’s 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, 2020, the Company had
1,139 units related to bulk sales agreements associated with its
wholesale business.
(5) 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.
(6) As of December 31, 2018, the Company had 163
units related to bulk sales agreements associated with its
wholesale business, of which 92 units and values are not included
in the table above.
CONTACT: |
Joshua D. FattorVice President of Investor Relations(281)
210-2619investorrelations@lgihomes.com |
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