THE WOODLANDS, Texas, April 30, 2024 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ:LGIH) today announced financial results for the three months ended March 31, 2024. First Quarter 2024 Highlights Home sales revenues of $390.9 million Home closings of 1,083 Average sales price per home closed of $360,897 Gross margin as a percentage of home sales revenues of 23.4% Adjusted gross margin (non-GAAP) as a percentage of home sales revenues of 25.3% Net income before income taxes of $23.1 million Net income of $17.1 million, or $0.72 basic EPS and $0.72 diluted EPS Active selling communities at March 31, 2024 of 120 Total owned and controlled lots of 70,145 Ending backlog of 1,335 homes valued at $519.5 million 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 89,227 shares of common stock repurchased during the first quarter of 2024 for an aggregate amount of $10.0 million Total liquidity of $491.5 million at March 31, 2024, including cash and cash equivalents of $49.0 million and $442.5 million of availability under the Company's revolving credit facility Net debt to capitalization of 41.6% at March 31, 2024 Management Comments "Although closings were down during the first quarter, the positive lead and sales trends we experienced, along with our success at expanding community count and maintaining margins, give us confidence that demand remains healthy, supported by positive, long-term fundamentals including strong demographic trends and a limited supply of affordable homes," said Eric Lipar, Chairman and Chief Executive Officer of LGI Homes. "Demand improved materially each month during the quarter. The appointments and sales generated from those leads enabled us to end the quarter with 1,335 homes in backlog. "Along with increasing demand and sales, another highlight was our success at managing costs and maintaining our margins. We delivered a gross margin of 23.4%, up 310 basis points compared to last year and in line with the fourth quarter of 2023, and our adjusted gross margin was 25.3%, up 320 basis points over last year and up 20 basis points sequentially. "Finally, we ended the quarter with a record 120 active communities, an increase of 21.2% over the prior year. Our teams around the country are doing an outstanding job getting new communities online and actively selling, and in March, we opened 13 new communities that will be added to community count as they deliver closings." Mr. Lipar concluded, "I am pleased to report that the positive demand trends we experienced in the first quarter carried over into April. As a result, we have generated over 800 net sales in each of the last two months, representing an absorption pace of six homes, per community, per month. With this significant momentum in leads and sales, supported by our growing community count, well capitalized balance sheet, and inventory of move-in ready homes, we are well-positioned to deliver on all of the guidance expectations we set out for 2024." Full Year 2024 Outlook Subject to the caveats in the Forward-Looking Statements section of this press release and the assumptions noted below, the Company is maintaining its prior guidance for the full year 2024. The Company continues to expect: Home closings between 7,000 and 8,000 Active selling communities at the end of 2024 of approximately 150 Average sales price per home closed between $350,000 and $360,000 Gross margin as a percentage of home sales revenues between 23.1% and 24.1% Adjusted gross margin (non-GAAP) as a percentage of home sales revenues between 25.0% and 26.0% with capitalized interest accounting for substantially all of the difference between gross margin and adjusted gross margin SG&A as a percentage of home sales revenues between 12.5% and 13.5% Effective tax rate between 24.0% and 25.0% This outlook assumes that general economic conditions, including input costs, materials, product and labor availability, interest rates and mortgage availability, in the remainder of 2024 are similar to those experienced to date in 2024 and that construction costs, availability of land and land development costs in the remainder of 2024 are consistent with the Company's recent experience. In addition, this outlook assumes that governmental regulations relating to land development and home construction are similar to those currently in place. 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, April 30, 2024 (the "Earnings Call"). Participants may access the live webcast by visiting the Investor Relations section of the Company's website at www.investor.lgihomes.com. An archive of the Earnings Call will be available for replay on the Company's website for one year from the date of the Earnings Call. About LGI Homes, Inc. Headquartered in The Woodlands, Texas, 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 across 36 markets in 21 states. As one of America's fastest growing companies, LGI Homes has closed over 70,000 homes since its founding in 2003 and has delivered profitable financial results every year. Nationally recognized for its quality construction and exceptional customer service, LGI Homes was named to Newsweek's list of the World's Most Trustworthy Companies. LGI Homes' commitment to excellence extends to its more than 1,000 employees, earning the Company numerous workplace awards at the local, state and national level, including the Top Workplaces USA 2024 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 recent net sales experience, projected 2024 home closings, 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 and effective tax rate, 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, 2023, 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 quarter ended March 31, 2024 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)       March 31,   December 31,       2024       2023   ASSETS         Cash and cash equivalents   $ 48,996     $ 48,978   Accounts receivable     27,151       41,319   Real estate inventory     3,229,100       3,107,648   Pre-acquisition costs and deposits     31,764       30,354   Property and equipment, net     49,775       45,522   Other assets     116,813       113,849   Deferred tax assets, net     7,269       8,163   Goodwill     12,018       12,018   Total assets   $ 3,522,886     $ 3,407,851             LIABILITIES AND EQUITY         Accounts payable   $ 46,156     $ 31,616   Accrued expenses and other liabilities     224,307       271,872   Notes payable     1,383,220       1,248,332   Total liabilities     1,653,683       1,551,820             COMMITMENTS AND CONTINGENCIES         EQUITY         Common stock, par value $0.01, 250,000,000 shares authorized, 27,596,140 shares issued and 23,567,441 shares outstanding as of March 31, 2024 and 27,521,120 shares issued and 23,581,648 shares outstanding as of December 31, 2023     276       275   Additional paid-in capital     327,182