LGI Homes, Inc. (NASDAQ: LGIH) today announced financial results
for the second quarter and six months ended June 30, 2021.
Second Quarter 2021 Highlights and
Comparisons to Second Quarter 2020
- Net Income
increased 112.4% to $118.1 million, or $4.75 Basic EPS and $4.71
Diluted EPS
- Net Income Before
Income Taxes increased 117.4% to $149.1 million
- Home Sales Revenues
increased 64.3% to $791.5 million
- Home Closings
increased 42.4% to 2,856 homes
- Average Sales Price
Per Home Closed increased 15.4% to $277,140
- 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 28.5%
- Active Selling
Communities at June 30, 2021 decreased 9.4% to 106
- Owned lots
increased to 42,492 and Controlled lots increased to 33,418 for
total Owned and Controlled lots of 75,910 at June 30,
2021
- Ending Backlog of
4,801 homes at June 30, 2021, an increase of 125.7%
- Ending Backlog
Value of $1.4 billion at June 30, 2021, an increase of
157.1%
*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.
Six Months Ended June 30, 2021
Highlights and Comparisons to Six Months Ended June 30,
2020
- Net Income
increased 121.2% to $217.8 million, or $8.75 Basic EPS and $8.66
Diluted EPS
- Net Income Before
Income Taxes increased 120.6% to $272.4 million
- Home Sales Revenues
increased 59.9% to $1.5 billion
- Home Closings
increased 41.1% to 5,417 homes
- Average Sales Price
Per Home Closed increased 13.4% to $276,438
- Gross Margin as a
Percentage of Homes Sales Revenues increased 300 basis points to
27.0%
- Adjusted Gross
Margin* as a Percentage of Home Sales Revenues increased 240 basis
points to 28.5%
*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
$826.2 million at June 30, 2021 including cash and cash
equivalents of $111.7 million and $714.5 million of availability
under the Company’s revolving credit facility
- Net debt to
capitalization of 26.8% at June 30, 2021, compared to 30.6% at
December 31, 2020
- 335,000 shares of
common stock repurchased during the second quarter of 2021 at an
average price per share of $166.50 for an aggregate amount of $55.8
million
- On June 28, 2021,
the Company completed its offering of $300.0 million of 4.000%
Senior Notes due 2029. Subsequent to the end of the quarter, on
July 15, 2021, the Company redeemed all of its outstanding 6.875%
Senior Notes due 2026 resulting in the principal payment of
$300.0 million and a redemption premium of $10.3 million.
Additionally, the Company expensed $3.0 million of deferred
financing costs and discounts that were being previously amortized
in association with the 6.875% Senior Notes due 2026.
Management Comments
“We are pleased to announce our results for the
second quarter of 2021” stated Eric Lipar, Chairman and Chief
Executive Officer of LGI Homes. “We delivered the strongest second
quarter performance in our history, exceeding our expectations and
setting new Company records for revenue, closings, absorptions and
virtually all our profitability metrics.
“Our second quarter highlights include a 64.3%
increase in revenue to $792 million, driven by a 15.4% increase in
average selling prices and a 41.1% increase in deliveries. We
delivered 9.1 closings per community, per month, a second quarter
record and the second highest level of absorptions in our history.
Our success in mitigating cost pressures through price increases
helped drive a 250 basis point year-over-year improvement in our
gross margin to a second quarter record of 27.0%. During the
quarter we achieved our lowest SG&A expense ratio ever. Those
cost savings, combined with significant operating leverage, drove
our pre-tax net income margin to a record 18.8%. Finally, our net
income increased over 112% year-over-year to $118 million, or $4.71
per diluted share, and we delivered a record 40.2% return on
equity.
Mr. Lipar continued, “During the quarter our net
orders declined 10.1% compared to last year due solely to lot
constraints and our decision to wait until later in the
construction cycle to offer homes for sale. Demand in our markets
continues to exceed our capacity and many of our communities now
maintain waitlists of potential buyers ready to purchase a home.
Given the robust demand environment and measures taken to support
our margins, we expect to see continued negative near-term net
order growth, particularly in the third quarter as we compare our
results against last year’s strong orders comp.
“Based on our accomplishments year-to-date and
our positive outlook for the remainder of 2021, we are raising our
full year guidance. We now expect to close between 10,000 and
10,500 homes at a higher expected average selling price of $285,000
to $295,000. Based on our continued success at passing through
price increases and the recent abatement in some raw material
costs, we are increasing guidance on our gross margin to a range
between 26.0% and 28.0% and our adjusted gross margin to a range
between 27.5% and 29.5%. Driven by strong organic demand and
continued operating leverage, we are lowering our expected SG&A
expense ratio to between 9.0% and 9.5%. Finally, we maintain our
expectation that we will finish the year with 112 to 120 active
communities.
Mr. Lipar concluded, “We are extremely pleased
with our record setting accomplishments during the second quarter
and expect the positive momentum we have generated to date to carry
into second half of the year. We are positioned to meet all of our
targets in 2021 and remain focused on delivering the homes in our
backlog, maintaining our best-in-class margins and acquiring land
that supports our growth objectives and meets our profitability and
return thresholds.”
2021 Second Quarter Results
Home closings during the second quarter of 2021
totaled 2,856, an increase of 42.4%, from 2,005 home closings
during the second quarter of 2020.
At the end of the second quarter of 2021, active
selling communities decreased to 106 from 117 communities at the
end of the second quarter of 2020. The decrease in community count
is due to close out of or transition between certain active
communities for the second quarter of 2021 as compared to the
second quarter of 2020.
Home sales revenues for the second quarter of
2021 were $791.5 million, an increase of $309.9 million, or 64.3%,
over the second 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
second quarter of 2021.
The average sales price per home closed for the
second quarter of 2021 was $277,140, an increase of $36,940, or
15.4%, over the second quarter of 2020. This increase in the
average sales price per home closed is 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 second quarter of 2021 was 27.0% as compared to
24.5% for the second quarter of 2020. Adjusted gross margin
(non-GAAP) as a percentage of home sales revenues for the second
quarter of 2021 was 28.5% as compared to 26.6% for the second
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 second
quarter of 2021 as compared to the second 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 second quarter of 2021 was
$118.1 million, or $4.75 per basic share and $4.71 per diluted
share, an increase of $62.5 million, or 112.4%, from $55.6 million,
or $2.22 per basic share and $2.21 per diluted share, for the
second 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 second quarter of 2021
as compared to the second quarter of 2020.
Results for the Six Months Ended June 30,
2021
Home closings during the six months ended June
30, 2021 totaled 5,417, an increase of 41.1%, from 3,840 home
closings during the six months ended June 30, 2020.
Home sales revenues for the six months ended
June 30, 2021 were $1.5 billion, an increase of $561.1 million, or
59.9%, over the six months ended June 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
six months ended June 30, 2021 as compared to the six months ended
June 30, 2020.
The average sales price per home closed for the
six months ended June 30, 2021 was $276,438, an increase of
$32,602, or 13.4%, over the first quarter 2020. This increase in
the average sales price per home closed is primarily due to changes
in product mix and higher price points in certain markets,
partially offset by additional wholesale home closings.
Gross margin as a percentage of home sales
revenues for the six months ended June 30, 2021 was 27.0% as
compared to 24.0% for the six months ended June 30, 2020. Adjusted
gross margin (non-GAAP) as a percentage of home sales revenues for
the six months ended June 30, 2021 was 28.5% as compared to 26.1%
for the six months ended June 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 six months ended June 30, 2021 as compared
to the six months ended June 30, 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 six months ended June 30,
2021 was $217.8 million, or $8.75 per basic share and $8.66 per
diluted share, an increase of $119.3 million, or 121.2%, from $98.5
million, or $3.91 per basic share and $3.88 per diluted share, for
the six months ended June 30, 2020. 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 and benefits relating to the federal energy efficient
homes tax credits recognized during the six months ended June 30,
2021 as compared to the six months ended June 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 112 and 120
- Average sales price
per home closed between $285,000 and $295,000
- Gross margin as a
percentage of home sales revenues between 26.0% and 28.0%
- Adjusted gross
margin (non-GAAP) as a percentage of home sales revenues between
27.5% and 29.5% 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
for the remainder of 2021 between 20.5% and 21.5%
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 third 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, August 3, 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 “7269003”. This replay will be available until August 10,
2021.
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 18
years of homebuilding operations, over which time it has closed
more than 50,000 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, 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 and June 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)
|
|
June 30, |
|
December 31, |
|
|
2021 |
|
2020 |
ASSETS |
|
|
|
|
Cash and cash equivalents |
|
$ |
111,704 |
|
|
$ |
35,942 |
|
Accounts receivable |
|
69,522 |
|
|
115,939 |
|
Real estate inventory |
|
1,750,860 |
|
|
1,569,489 |
|
Pre-acquisition costs and deposits |
|
38,817 |
|
|
37,213 |
|
Property and equipment, net |
|
8,570 |
|
|
3,618 |
|
Other assets |
|
61,249 |
|
|
44,882 |
|
Deferred tax assets, net |
|
6,097 |
|
|
6,986 |
|
Goodwill |
|
12,018 |
|
|
12,018 |
|
Total assets |
|
$ |
2,058,837 |
|
|
$ |
1,826,087 |
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
Accounts payable |
|
$ |
57,578 |
|
|
$ |
13,676 |
|
Accrued expenses and other liabilities |
|
131,197 |
|
|
135,008 |
|
Notes payable |
|
583,656 |
|
|
538,398 |
|
Total liabilities |
|
772,431 |
|
|
687,082 |
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
EQUITY |
|
|
|
|
Common stock, par value $0.01,
250,000,000 shares authorized, 26,926,693 shares issued and
24,617,479 shares outstanding as of June 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 |
|
281,808 |
|
|
270,598 |
|
Retained earnings |
|
1,152,069 |
|
|
934,277 |
|
Treasury stock, at cost, 2,309,214 shares and 1,757,993 shares,
respectively |
|
(147,740 |
) |
|
(66,137 |
) |
Total equity |
|
1,286,406 |
|
|
1,139,005 |
|
Total liabilities and equity |
|
$ |
2,058,837 |
|
|
$ |
1,826,087 |
|
|
LGI HOMES,
INC.CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)(In
thousands, except share and per share data)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Home sales revenues |
|
$ |
791,512 |
|
|
$ |
481,602 |
|
|
$ |
1,497,465 |
|
|
$ |
936,329 |
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
577,433 |
|
|
363,629 |
|
|
1,093,437 |
|
|
711,792 |
|
Selling expenses |
|
44,796 |
|
|
29,960 |
|
|
87,579 |
|
|
62,723 |
|
General and
administrative |
|
23,276 |
|
|
20,179 |
|
|
47,999 |
|
|
40,102 |
|
Operating income |
|
146,007 |
|
|
67,834 |
|
|
268,450 |
|
|
121,712 |
|
Loss on extinguishment of
debt |
|
662 |
|
|
— |
|
|
662 |
|
|
— |
|
Other income, net |
|
(3,776 |
) |
|
(763 |
) |
|
(4,609 |
) |
|
(1,774 |
) |
Net income before income
taxes |
|
149,121 |
|
|
68,597 |
|
|
272,397 |
|
|
123,486 |
|
Income tax provision |
|
30,987 |
|
|
12,973 |
|
|
54,605 |
|
|
25,023 |
|
Net income |
|
$ |
118,134 |
|
|
$ |
55,624 |
|
|
$ |
217,792 |
|
|
$ |
98,463 |
|
Earnings per share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
4.75 |
|
|
$ |
2.22 |
|
|
$ |
8.75 |
|
|
$ |
3.91 |
|
Diluted |
|
$ |
4.71 |
|
|
$ |
2.21 |
|
|
$ |
8.66 |
|
|
$ |
3.88 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
24,844,644 |
|
|
25,074,826 |
|
|
24,897,462 |
|
|
25,198,952 |
|
Diluted |
|
25,061,812 |
|
|
25,153,076 |
|
|
25,138,691 |
|
|
25,366,106 |
|
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 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 June 30, |
|
Six Months Ended June 30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Home sales revenues |
|
$ |
791,512 |
|
|
$ |
481,602 |
|
|
$ |
1,497,465 |
|
|
$ |
936,329 |
|
Cost of sales |
|
577,433 |
|
|
363,629 |
|
|
1,093,437 |
|
|
711,792 |
|
Gross margin |
|
214,079 |
|
|
117,973 |
|
|
404,028 |
|
|
224,537 |
|
Capitalized interest charged to cost of sales |
|
10,442 |
|
|
8,684 |
|
|
21,115 |
|
|
17,614 |
|
Purchase accounting adjustments (1) |
|
1,446 |
|
|
1,252 |
|
|
2,258 |
|
|
1,875 |
|
Adjusted gross margin |
|
$ |
225,967 |
|
|
$ |
127,909 |
|
|
$ |
427,401 |
|
|
$ |
244,026 |
|
Gross margin % (2) |
|
27.0 |
% |
|
24.5 |
% |
|
27.0 |
% |
|
24.0 |
% |
Adjusted gross margin %
(2) |
|
28.5 |
% |
|
26.6 |
% |
|
28.5 |
% |
|
26.1 |
% |
(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 June 30, 2021 |
|
|
Revenues |
|
Home Closings |
|
ASP |
|
Average Community Count |
|
AverageMonthlyAbsorption
Rate |
Central |
|
$ |
347,963 |
|
|
1,348 |
|
|
$ |
258,133 |
|
|
38.0 |
|
|
11.8 |
|
Southeast |
|
159,714 |
|
|
632 |
|
|
252,712 |
|
|
25.7 |
|
|
8.2 |
|
Northwest |
|
106,197 |
|
|
255 |
|
|
416,459 |
|
|
10.3 |
|
|
8.3 |
|
West |
|
80,813 |
|
|
232 |
|
|
348,332 |
|
|
10.7 |
|
|
7.2 |
|
Florida |
|
96,825 |
|
|
389 |
|
|
248,907 |
|
|
20.3 |
|
|
6.4 |
|
Total |
|
$ |
791,512 |
|
|
2,856 |
|
|
$ |
277,140 |
|
|
105.0 |
|
|
9.1 |
|
|
|
|
|
Three Months Ended June 30, 2020 |
|
|
Revenues |
|
Home Closings |
|
ASP |
|
Average Community Count |
|
AverageMonthlyAbsorption
Rate |
Central |
|
$ |
167,924 |
|
|
747 |
|
|
$ |
224,798 |
|
|
34.0 |
|
|
7.3 |
|
Southeast |
|
128,577 |
|
|
559 |
|
|
230,013 |
|
|
37.3 |
|
|
5.0 |
|
Northwest |
|
56,369 |
|
|
153 |
|
|
368,425 |
|
|
11.3 |
|
|
4.5 |
|
West |
|
60,592 |
|
|
236 |
|
|
256,746 |
|
|
15.3 |
|
|
5.1 |
|
Florida |
|
68,140 |
|
|
310 |
|
|
219,806 |
|
|
18.0 |
|
|
5.7 |
|
Total |
|
$ |
481,602 |
|
|
2,005 |
|
|
$ |
240,200 |
|
|
116.0 |
|
|
5.8 |
|
|
|
|
Six Months Ended June 30, 2021 |
|
|
Revenues |
|
Home Closings |
|
ASP |
|
Average Community Count |
|
AverageMonthlyAbsorption
Rate |
Central |
|
$ |
636,713 |
|
|
2,475 |
|
|
$ |
257,258 |
|
|
37.6 |
|
|
11.0 |
|
Southeast |
|
296,265 |
|
|
1,180 |
|
|
251,072 |
|
|
26.7 |
|
|
7.4 |
|
Northwest |
|
224,388 |
|
|
551 |
|
|
407,238 |
|
|
10.5 |
|
|
8.7 |
|
West |
|
161,961 |
|
|
481 |
|
|
336,717 |
|
|
10.7 |
|
|
7.5 |
|
Florida |
|
178,138 |
|
|
730 |
|
|
244,025 |
|
|
20.2 |
|
|
6.0 |
|
Total |
|
$ |
1,497,465 |
|
|
5,417 |
|
|
$ |
276,438 |
|
|
105.7 |
|
|
8.5 |
|
|
|
|
Six Months Ended June 30, 2020 |
|
|
Revenues |
|
Home Closings |
|
ASP |
|
Average Community Count |
|
Average MonthlyAbsorption
Rate |
Central |
|
$ |
333,699 |
|
|
1,488 |
|
|
$ |
224,260 |
|
|
34.0 |
|
|
7.3 |
|
Southeast |
|
217,024 |
|
|
962 |
|
|
225,597 |
|
|
34.2 |
|
|
4.7 |
|
Northwest |
|
158,317 |
|
|
426 |
|
|
371,636 |
|
|
11.8 |
|
|
6.0 |
|
West |
|
119,077 |
|
|
472 |
|
|
252,282 |
|
|
15.0 |
|
|
5.2 |
|
Florida |
|
108,212 |
|
|
492 |
|
|
219,943 |
|
|
17.3 |
|
|
4.7 |
|
Total |
|
$ |
936,329 |
|
|
3,840 |
|
|
$ |
243,836 |
|
|
112.3 |
|
|
5.7 |
|
Owned and Controlled Lots
The table below shows (i) home closings by
reportable segment for the six months ended June 30, 2021 and
(ii) owned or controlled lots by reportable segment as of
June 30, 2021.
|
|
Six Months Ended June 30, 2021 |
|
As of June 30, 2021 |
Reportable Segment |
|
Home Closings |
|
Owned (1) |
|
Controlled |
|
Total |
Central |
|
2,475 |
|
|
19,110 |
|
|
13,529 |
|
|
32,639 |
|
Southeast |
|
1,180 |
|
|
11,944 |
|
|
7,201 |
|
|
19,145 |
|
Northwest |
|
551 |
|
|
3,685 |
|
|
4,899 |
|
|
8,584 |
|
West |
|
481 |
|
|
4,942 |
|
|
4,776 |
|
|
9,718 |
|
Florida |
|
730 |
|
|
2,811 |
|
|
3,013 |
|
|
5,824 |
|
Total |
|
5,417 |
|
|
42,492 |
|
|
33,418 |
|
|
75,910 |
|
(1) Of the 42,492 owned lots as of June 30,
2021, 29,885 were raw/under development lots and 12,607 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):
Backlog
Data |
|
Six Months Ended June 30, |
2021 (4) |
|
2020 (5) |
Net orders (1) |
|
7,254 |
|
|
4,734 |
|
Cancellation rate (2) |
|
14.8 |
% |
|
21.8 |
% |
Ending
backlog – homes (3) |
|
4,801 |
|
|
2,127 |
|
Ending backlog – value (3) |
|
$ |
1,434,382 |
|
|
$ |
558,007 |
|
(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 June 30, 2021, the Company had 940
units related to bulk sales agreements associated with its
wholesale business.
(5) As of June 30, 2020, the Company had 208
units related to bulk sales agreements associated with its
wholesale business.
CONTACT: Joshua D. FattorVice President of Investor
Relations(281) 210-2619investorrelations@lgihomes.com
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