Financial Performance - Home sales revenues decreased by 10.1% to $351.4 million from $390.9 million year-over-year[86] - Homes closed decreased by 8.0% to 996 homes from 1,083 homes year-over-year[86] - Average sales price per home closed decreased by 2.2% to $352,831 from $360,897 year-over-year[86] - Net income decreased by 76.6% to $4.0 million from $17.1 million year-over-year[86] - EBITDA for the three months ended March 31, 2025, was $14.9 million, a decrease of $15.5 million, or 51.1%, from $30.4 million for the same period in 2024, with an EBITDA margin of 4.2% compared to 7.8% in 2024[106] - Operating income for the three months ended March 31, 2025, was $0.2 million, a decrease of $18.6 million, or 99.1%, from $18.7 million for the same period in 2024[97] Margins and Expenses - Gross margin as a percentage of home sales revenues decreased to 21.0% from 23.4%[86] - Gross margin for the three months ended March 31, 2025, was $73.7 million, a decrease of $17.7 million, or 19.4%, from $91.4 million for the same period in 2024, with a gross margin percentage of 21.0% compared to 23.4% in 2024[92] - Selling expenses for the three months ended March 31, 2025, were $42.3 million, an increase of $1.2 million, or 3.0%, from $41.1 million for the same period in 2024[93] - General and administrative expenses for the three months ended March 31, 2025, were $31.2 million, a decrease of $0.3 million, or 1.1%, from $31.5 million for the same period in 2024[94] Orders and Backlog - The company ended the quarter with a backlog of 1,040 homes[80] - Net orders decreased by 21.4% to 1,437 homes for the three months ended March 31, 2025, compared to 1,828 homes for the same period in 2024[110] - Ending backlog decreased by 22.1% to 1,040 homes as of March 31, 2025, compared to 1,335 homes as of March 31, 2024[109] - The value of the ending backlog was $406.2 million as of March 31, 2025, down from $519.5 million as of March 31, 2024[110] Community and Lot Inventory - The average community count increased to 148.0 from 116.7 year-over-year[87] - The company had 146 active communities as of March 31, 2025, compared to 120 active communities a year earlier[82] - The company had 146 active communities as of March 31, 2025, compared to 151 as of December 31, 2024[111] - The company owned and controlled 67,792 lots as of March 31, 2025, down from 70,899 lots at December 31, 2024[85] - Lot inventory decreased to 67,792 lots as of March 31, 2025, from 70,899 lots as of December 31, 2024[112] Cash and Debt Management - As of March 31, 2025, the company had $57.6 million in cash and cash equivalents[121] - The company entered into a $1.1825 billion revolving credit facility, maturing on April 28, 2029, with 82.2% of the commitments due at that time[127] - As of March 31, 2025, borrowings under the credit agreement totaled approximately $1.6 billion, with $302.4 million available to borrow[129] - The company issued $400.0 million of 2032 Senior Notes with a 7.000% interest rate, maturing on November 15, 2032[132] - The company issued $400.0 million of 2028 Senior Notes with an 8.750% interest rate, maturing on December 15, 2028[134] - As of March 31, 2025, outstanding letters of credit, surety bonds, and financial guarantees totaled $427.2 million[137] Cash Flow - Net cash used in operating activities was $127.1 million for the three months ended March 31, 2025, primarily due to a $186.6 million decrease in real estate inventory[139] - Net cash provided by financing activities was $131.8 million during the three months ended March 31, 2025, driven by $172.5 million of borrowings under the 2024 Credit Agreement[143] - The company reported a net cash used in investing activities of $0.2 million for the three months ended March 31, 2025[142] Market Conditions and Risks - Inflation may adversely impact the company due to higher costs in land, financing, labor, materials, and construction[145] - The company operates with interest rate sensitivity, which may affect homebuyer financing and overall housing demand[153] - As of March 31, 2025, the company had $544.4 million of variable rate indebtedness outstanding under the 2024 Credit Agreement[156] - The interest rate for the variable rate indebtedness was SOFR plus 1.85%, with SOFR at 4.32% as of March 31, 2025[156] - A hypothetical 100 basis point increase in the average interest rate above the SOFR floor would increase the company's annual interest cost by approximately $5.4 million[156] - The company believes that future interest rate risks related to existing indebtedness will not have a material adverse impact on its financial position, results of operations, or liquidity[157]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $351.4 million, a 10.1% decrease year-over-year, driven by an 8% decline in home closings and a 2.2% decline in average sales price (ASP) [10][11] - Gross margin for Q1 2025 was 21%, down from 23.4% in the same period last year, primarily due to a one-time expense related to the forward commitment incentive program [11][12] - Net income for Q1 2025 was $4 million, or $0.17 per share, compared to a higher figure in the previous year [14] Business Line Data and Key Metrics Changes - The company delivered 996 homes in Q1 2025 at an average sales price of $352,831 [5][10] - The company recognized a one-time expense of $8.6 million related to the forward commitment incentive program, impacting revenue and gross margins [10][11] - The cancellation rate for Q1 was 16.3%, slightly improved from 16.8% in the same period last year [14] Market Data and Key Metrics Changes - The company ended Q1 with 1,040 homes in backlog, representing over $406.2 million [14] - The top markets based on closings per community were Richmond (5.3), Charlotte (4.6), Raleigh (4.3), Atlanta (3.8), and Nashville (3.6) [6] Company Strategy and Development Direction - The company is focused on addressing the persistent shortage of entry-level homes, which is seen as a societal challenge and a long-term growth opportunity [9] - The company plans to maintain its full-year guidance of closing between 21,000 to 23,000 homes, with an average selling price between $360,000 and $370,000 [18] - The company is adjusting its gross margin expectations downward by 100 to 150 basis points due to anticipated cost increases from tariffs and market uncertainties [18] Management's Comments on Operating Environment and Future Outlook - Management noted that affordability remains the biggest challenge for buyers, with rate volatility affecting their purchasing confidence [4][5] - Despite recent headwinds, management expressed confidence in the long-term outlook for the housing market, citing strong underlying demographic fundamentals [9] - Management highlighted that the sales pace improved in March, indicating a potential recovery as the spring selling season began [5][36] Other Important Information - The company ended Q1 with $1.6 billion in debt and a debt-to-cap ratio of 44.3% [16] - The company repurchased 41,685 shares for $3.1 million during the quarter, with $177.7 million remaining on its stock buyback authorization [16][72] Q&A Session Summary Question: Can you provide more details on the gross margin trajectory for the upcoming quarters? - Management indicated that gross margins are expected to ramp up as volume increases, with adjustments made due to tariffs and market conditions [21][22][85] Question: What is driving the need for increased incentives? - Management noted that the competitive market dynamics and the need to assist buyers with closing costs and rate buy-downs are driving the increase in incentives [26][29] Question: How confident is the company in achieving its full-year closing targets? - Management expressed confidence in achieving the closing targets, citing improved sales trends in March and ongoing demand [36][39] Question: How is the company responding to competitors cutting prices? - Management stated that the company is cautious about discounting prices and focuses on providing value through incentives rather than steep discounts [78][81] Question: What interest rates are being offered through the forward commitment program? - Management mentioned that they are currently buying down rates to the mid-5% range for FHA loans with good credit [80]

Financial Data and Key Metrics Changes - Revenue for the first quarter was $351.4 million, a 10.1% decrease year over year, driven by an 8% decline in home closings and a 2.2% decline in average sales price [11][12] - Gross margin was 21% compared to 23.4% in the same period last year, primarily due to a one-time expense and an increase in wholesale closings [12] - Net income for the first quarter was $4 million, or $0.17 per share [15] Business Line Data and Key Metrics Changes - The company delivered 996 homes in the first quarter at an average sales price of $352,831 [5][11] - The company recognized a one-time expense of $8.6 million related to the forward commitment incentive program, impacting revenue and gross margins [11][12] - The cancellation rate was 16.3%, slightly improved from 16.8% in the same period last year [15] Market Data and Key Metrics Changes - The company ended the first quarter with 1,040 homes in backlog, representing over $406.2 million [15] - The top markets based on closings per community were Richmond, Charlotte, Raleigh, Atlanta, and Nashville [7] Company Strategy and Development Direction - The company is focused on addressing the persistent shortage of entry-level homes, which is expected to drive sustained demand for homeownership [9] - The company plans to maintain its full-year guidance for home closings and average selling prices despite market challenges [19] - The company is proactively managing costs related to tariffs and is adjusting gross margin expectations accordingly [19] Management's Comments on Operating Environment and Future Outlook - Management noted that affordability remains the biggest challenge for buyers, with rate volatility affecting their purchasing confidence [4][5] - The company expressed confidence in the long-term outlook for the housing market, citing strong underlying demographic fundamentals [9] - Management acknowledged the need to monitor market conditions closely, particularly regarding demand and pricing [40] Other Important Information - The company ended the quarter with $1.6 billion in debt and a debt-to-cap ratio of 44.3% [17] - The company repurchased 41,685 shares for $3.1 million during the quarter [18] Q&A Session Summary Question: Can you provide more details on the gross margin trajectory for the upcoming quarters? - Management indicated that gross margins are expected to ramp up as volume increases, with adjustments made due to tariff-related costs and market conditions [24][26] Question: What is driving the need for higher incentives? - Management noted that the need for incentives is driven by market dynamics, including a slower sales pace and increased competition [29][30] Question: How confident is the company in achieving its full-year closing targets? - Management expressed confidence in achieving closing targets, citing improved sales trends in March and ongoing demand [37][38] Question: How is the company responding to competitors cutting prices? - Management stated that while they do not typically engage in steep discounts, they are focused on providing compelling incentives to maintain competitiveness [79] Question: What is the current status of the stock buyback program? - The company has $177 million remaining on its stock buyback authorization and plans to prioritize share repurchases given the current stock valuation [71]

Company Performance - LGI Homes reported quarterly earnings of $0.46 per share, missing the Zacks Consensus Estimate of $0.75 per share, and down from $0.72 per share a year ago, indicating a significant earnings surprise of -38.67% [1][2] - The company posted revenues of $351.42 million for the quarter, missing the Zacks Consensus Estimate by 3.70%, and down from $390.85 million year-over-year [3] Market Position - LGI Homes shares have declined approximately 33.7% since the beginning of the year, contrasting with the S&P 500's decline of -6% [4] - The current Zacks Rank for LGI Homes is 5 (Strong Sell), indicating expectations of underperformance in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $1.95 on revenues of $595.31 million, and for the current fiscal year, it is $8.47 on revenues of $2.52 billion [8] - The Real Estate - Development industry, to which LGI Homes belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, suggesting a challenging environment for the company [9]

EXHIBIT 99.1 LGI Homes, Inc. Reports First Quarter 2025 Results "We continue to monitor tariffs and potential impacts that higher costs could have on margins. In March, we began receiving notices of price increases from some suppliers related to tariffs. With this in mind, we are proactively trimming our full year gross margin guidance by 150 basis points at the low end and 100 basis points at the high end to account for these additional costs and the potential for additional market volatility. As a result, ...

Core Viewpoint - LGI Homes reported solid financial results for Q1 2025 despite challenges in affordability and rate volatility affecting homebuyers' confidence [2][3]. Financial Performance - The company delivered 996 homes with an average sales price of $352,831, resulting in total revenue of $351.4 million for the first quarter [3][9]. - A one-time expense of $8.6 million related to a forward commitment incentive program was included in the financial results [3]. - Net income for the quarter was $4.0 million, translating to earnings per share of $0.17 [9][20]. Guidance and Outlook - LGI Homes maintains its full-year 2025 guidance, expecting to close between 6,200 and 7,000 homes at an average sales price between $360,000 and $370,000 [4][14]. - The company has adjusted its gross margin guidance down by 150 basis points at the low end and 100 basis points at the high end due to anticipated higher costs from tariffs [5][10]. Market Conditions - The company noted strong demand for new homes but highlighted affordability as a significant challenge for buyers [2]. - The persistent shortage of entry-level homes is seen as a societal challenge, emphasizing the need for affordable residential construction [5]. Balance Sheet Highlights - As of March 31, 2025, total liquidity was $360.0 million, including cash and cash equivalents of $57.6 million [9]. - The company had total owned and controlled lots of 67,792, with an ending backlog of 1,040 homes valued at $406.2 million [9][29]. Segment Performance - Home sales revenues by reportable segment showed the following for Q1 2025: Central ($101.1 million), Southeast ($101.7 million), Northwest ($34.2 million), West ($67.0 million), and Florida ($47.4 million) [25]. - The average sales price per home closed was $352,831, with an average community count of 148 [25]. Backlog Data - Net orders for the quarter were 1,437, with a cancellation rate of 16.3% [29]. - The ending backlog consisted of 1,040 homes, down from 1,335 homes in the same period last year [29].

Company Overview - LGI Homes has launched The Oasis at Hollywood Springs, an exclusive active adult community for individuals aged 55 and older, located in the Hollywood Springs neighborhood of Las Vegas [1][3] - This marks LGI Homes' first active adult offering in Nevada, featuring 26 homesites with modern layouts and premium upgrades [3] Product Features - The Oasis at Hollywood Springs offers 2- and 3-bedroom homes designed for active adults, with features such as spacious open floor plans, gourmet kitchens with granite countertops, and energy-efficient appliances [3] - Homes are designed for single-level living, including extra-wide doorways, walk-in showers, and low-maintenance desert landscaping, with attached two-car garages [3] Market Position - Las Vegas is recognized as a top destination for retirees, offering a mild climate, affordable living costs, and a variety of amenities, making it an attractive location for active adults [2] - Kiplinger has ranked Las Vegas among the top 10 best cities for homebuyers aged 55 and older, highlighting its appeal for retirement living [2] Pricing Information - Homes at The Oasis at Hollywood Springs start in the low $400s [3]

Core Insights - LGI Homes, Inc. has opened a new section at Second Creek Farm in Commerce City, Colorado, featuring 240 lots for homebuyers [1] - The community offers upgraded, affordable homes in a desirable location with significant outdoor recreational opportunities [2] - The new section introduces a variety of modern floor plans, including two- to five-bedroom homes equipped with high-end finishes and energy-efficient systems [3] Community Features - LGI Homes invested $1 million in park and amenities to enhance family living experiences [2] - The community is adjacent to 840 acres of open space and connects to 25 miles of walking trails [2] - Move-in ready homes are priced starting from $528,900 [4] Company Overview - LGI Homes is headquartered in The Woodlands, Texas, and operates in 36 markets across 21 states [5] - The company has closed over 75,000 homes since its founding in 2003 and has consistently delivered profitable financial results [5] - LGI Homes has been recognized for its quality construction and customer service, earning various workplace awards [5]

Core Insights - LGI Homes, Inc. has opened a new 6-acre park at Sweetwater Ridge in Conroe, Texas, with an investment of nearly $3 million, aimed at enhancing community engagement among residents [1][2]. Company Overview - LGI Homes, Inc. is headquartered in The Woodlands, Texas, and operates in 36 markets across 21 states, having closed over 75,000 homes since its inception in 2003 [6]. - The company has consistently delivered profitable financial results and has been recognized for its quality construction and customer service, including being named to Newsweek's list of the World's Most Trustworthy Companies [6]. Community Features - The new park includes a children's playground, splash pad, two dog parks, an 18-hole disc golf course, a fishing lake, and a community pavilion, all designed to promote recreation and social interaction [2][3]. - Sweetwater Ridge offers a variety of three- and four-bedroom homes ranging from 1,076 to 2,174 square feet, featuring upscale amenities and starting prices in the $230s [4]. Location and Accessibility - Sweetwater Ridge is conveniently located along FM-1484 with easy access to I-45 and SH-105, close to top-rated schools, major employers, and shopping and dining options in Conroe and The Woodlands [3].

With its unbeatable location, family-friendly amenities, and beautifully crafted homes, Mount Tabor Pointe is the perfect place to call home in Dallas, Georgia. For more information or to schedule a tour of the community, please contact the sales team at 855-712-9725 ext. 791. DALLAS, Ga., April 21, 2025 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ: LGIH) is now selling homes at Mount Tabor Pointe, a vibrant new community located in the heart of Dallas, Georgia. Since launching, the community has seen remark ...