RIVERBANK, Calif., May 08, 2024 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ:LGIH) today announced the opening of its second community in the Modesto, California, market, Diamond Bar East. This incredible community offers a variety of one and two-story homes and is located northeast of Modesto in the friendly town of Riverbank. "We are excited to be a part of the tremendous growth here in Riverbank. Diamond Bar East is so close to everything and offers an easy commute to the Bay Area. However, you don't need ...

BAKERSFIELD, Calif., May 07, 2024 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ:LGIH) announces the opening of a new section at Morningstar Ranch, its first community in Bakersfield. This community offers single story homes in a highly sought after area and is a quick 10-minute drive to downtown Bakersfield. "We are proud to provide the opportunity of homeownership in Bakersfield. Morningstar Ranch is a special community tucked away in a unique area. We have successfully sold out of all of our previous phases ...

THE WOODLANDS, Texas, May 03, 2024 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ:LGIH) today announced it closed 505 homes in April 2024. As of April 30, 2024, the Company had 127 active selling communities. 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, L ...

MARYSVILLE, Wash., May 03, 2024 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ:LGIH) today announced the grand opening of The Village at Whiskey Ridge, a new community located in Marysville, Washington. The new community is situated 5 miles east of I-5 and less than a mile from WA-9, providing commuters access to major employment centers and attractions in Marysville, Everett and Bellevue. The Village at Whiskey Ridge features family-friendly amenities and an incredible lineup of move-in-ready townhomes at som ...

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents LGI Homes, Inc.'s unaudited consolidated financial statements for Q1 2024, detailing financial position, performance, and cash flows with accompanying notes [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) - Total assets increased to **$3.52 billion** as of March 31, 2024, primarily driven by a rise in real estate inventory. Total liabilities also grew, mainly due to an increase in notes payable[12](index=12&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$3,522,886** | **$3,407,851** | | Real estate inventory | $3,229,100 | $3,107,648 | | Cash and cash equivalents | $48,996 | $48,978 | | **Total Liabilities** | **$1,653,683** | **$1,551,820** | | Notes payable | $1,383,220 | $1,248,332 | | **Total Equity** | **$1,869,203** | **$1,856,031** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) - For the three months ended March 31, 2024, home sales revenues decreased to **$390.9 million** from **$487.4 million** in the prior-year period. Net income declined to **$17.1 million**, or **$0.72 per diluted share**, compared to **$27.0 million**, or **$1.14 per diluted share**, in Q1 2023[15](index=15&type=chunk) Consolidated Statements of Operations (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Home sales revenues | $390,851 | $487,357 | | Operating income | $18,733 | $26,051 | | **Net income** | **$17,053** | **$26,962** | | Diluted EPS | $0.72 | $1.14 | [Consolidated Statements of Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Equity) - Total equity increased from **$1.856 billion** at December 31, 2023, to **$1.869 billion** at March 31, 2024. The increase was primarily driven by net income of **$17.1 million**, partially offset by a **$10.0 million** stock repurchase[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) - Cash used in operating activities was **$99.5 million** in Q1 2024, a significant shift from **$77.6 million** provided by operations in Q1 2023, mainly due to an increase in real estate inventory. Cash from financing activities was **$97.5 million**, driven by proceeds from notes payable[21](index=21&type=chunk) Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(99,493) | $77,600 | | Net cash provided by (used in) investing activities | $2,018 | $(4,855) | | Net cash provided by (used in) financing activities | $97,493 | $(61,777) | | **Net increase in cash** | **$18** | **$10,968** | [Notes to the Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) - The company designs, constructs, and sells new homes across **21 states**. The financial statements are prepared under U.S. GAAP for interim periods[23](index=23&type=chunk)[24](index=24&type=chunk) - During Q1 2024, the company repurchased **89,227 shares** of its common stock for **$10.0 million**. As of March 31, 2024, **$201.5 million** remained available for repurchase under the program[49](index=49&type=chunk) Real Estate Inventory (in thousands) | Category | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Land, land under development and finished lots | $2,145,846 | $2,099,133 | | Homes in progress | $419,997 | $313,124 | | Completed homes | $533,284 | $542,996 | | **Total owned inventory** | **$3,151,291** | **$3,003,189** | Notes Payable (in thousands) | Instrument | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Notes payable under Credit Agreement | $703,055 | $569,633 | | 4.000% Senior Notes due 2029 | $300,000 | $300,000 | | 8.750% Senior Notes due 2028 | $400,000 | $400,000 | | **Total notes payable** | **$1,383,220** | **$1,248,332** | Segment Revenues (in thousands) | Segment | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Central | $103,736 | $150,380 | | Southeast | $116,445 | $104,376 | | Northwest | $36,067 | $74,815 | | West | $73,079 | $78,886 | | Florida | $61,524 | $78,900 | | **Total** | **$390,851** | **$487,357** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial results, highlighting decreased home sales and closings due to affordability pressures, alongside improved gross margins and liquidity analysis - The decrease in home closings was primarily due to pressure on affordability from continued inflation and elevated mortgage rates. The company increased its active communities to **120** at the end of Q1 2024, up from **99** in the prior year[81](index=81&type=chunk)[82](index=82&type=chunk) - The company's lot inventory stood at **70,145** owned or controlled lots as of March 31, 2024, a slight decrease from **71,081** at the end of 2023[88](index=88&type=chunk)[117](index=117&type=chunk) Key Financial Results Summary | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Home sales revenues | $390.9M | $487.4M | -19.8% | | Homes closed | 1,083 | 1,366 | -20.7% | | Average sales price | $360,897 | $356,777 | +1.2% | | Gross margin % | 23.4% | 20.3% | +310 bps | | Adjusted gross margin % | 25.3% | 22.1% | +320 bps | | Net income | $17.1M | $27.0M | -36.8% | [Results of Operations](index=20&type=section&id=Results%20of%20Operations) - Home sales revenues decreased by **19.8%** to **$390.9 million** in Q1 2024, driven by a **20.7%** decrease in homes closed, which was partially offset by a **1.2%** increase in the average sales price per home[93](index=93&type=chunk) - Gross margin as a percentage of home sales revenues increased to **23.4%** in Q1 2024 from **20.3%** in Q1 2023, primarily due to a combination of lower input costs and higher sales prices[96](index=96&type=chunk) - Selling expenses as a percentage of home sales revenues increased to **10.5%** from **8.8%** YoY, driven by increased advertising expenses and lower home sales revenues[97](index=97&type=chunk) - The effective tax rate increased to **26.2%** for Q1 2024 from **16.7%** for Q1 2023, primarily due to changes in deductions for share-based payments and state income taxes[101](index=101&type=chunk) [Non-GAAP Measures](index=23&type=section&id=Non-GAAP%20Measures) Reconciliation of Gross Margin to Adjusted Gross Margin (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Gross margin | $91,401 | $98,816 | | Capitalized interest charged to cost of sales | $6,601 | $6,757 | | Purchase accounting adjustments | $803 | $2,036 | | **Adjusted gross margin** | **$98,805** | **$107,609** | | Adjusted gross margin % | 25.3% | 22.1% | Reconciliation of Net Income to EBITDA (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income | $17,053 | $26,962 | | Income tax provision | $6,041 | $5,386 | | Depreciation and amortization | $673 | $482 | | Capitalized interest charged to cost of sales | $6,601 | $6,757 | | **EBITDA** | **$30,368** | **$39,587** | [Backlog](index=25&type=section&id=Backlog) - Net orders and ending backlog decreased in Q1 2024 compared to the prior year, primarily due to lower demand resulting from higher mortgage rates. The cancellation rate saw a slight increase[113](index=113&type=chunk) Backlog Data | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net orders | 1,828 | 2,219 | | Cancellation rate | 16.8% | 15.9% | | Ending backlog – homes | 1,335 | 1,555 | | Ending backlog – value | $519.5M | $561.4M | [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2024, the company had **$49.0 million** in cash and cash equivalents[126](index=126&type=chunk) - Under its **$1.205 billion** revolving credit facility, the company had **$442.5 million** available to borrow as of March 31, 2024[134](index=134&type=chunk) - Net cash used in operating activities was **$99.5 million** for Q1 2024, compared to **$77.6 million** provided by operating activities in Q1 2023, mainly due to an increase in real estate inventory[141](index=141&type=chunk) - The company repurchased **$10.0 million** of its common stock during Q1 2024[144](index=144&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate risk, as higher mortgage rates can negatively affect housing demand and the ability of homebuyers to secure financing - The company's operations are sensitive to interest rates, as increases can adversely affect housing demand and homebuyer financing[155](index=155&type=chunk) - As of March 31, 2024, the company had **$703.1 million** of variable rate debt outstanding under its Credit Agreement. A hypothetical **100 basis point** increase in the SOFR rate would increase annual interest costs by approximately **$7.0 million**[159](index=159&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of March 31, 2024, and concluded they were effective - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period[161](index=161&type=chunk) - No changes in internal control over financial reporting occurred during Q1 2024 that have materially affected, or are reasonably likely to materially affect, internal controls[164](index=164&type=chunk) PART II - OTHER INFORMATION [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) The company states that there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - There have been no material changes to the risk factors disclosed in the company's 2023 Form 10-K[166](index=166&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase activity for the three months ended March 31, 2024, including shares repurchased and remaining authorization - As of March 31, 2024, the approximate dollar value of shares that may yet be purchased under the stock repurchase program was **$201.5 million**[168](index=168&type=chunk) Share Repurchases in Q1 2024 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | January 2024 | 0 | $0.00 | | February 2024 | 17,693 | $113.06 | | March 2024 | 71,534 | $111.85 | | **Total** | **89,227** | **$112.09** | [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) The company reports that during the first quarter of 2024, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended March 31, 2024[169](index=169&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications pursuant to the Sarbanes-Oxley Act and Inline XBRL documents - The exhibits filed with this report include CEO/CFO certifications (**31.1, 31.2, 32.1, 32.2**) and Inline XBRL data files (**101 series**)[172](index=172&type=chunk)

LGI Homes (LGIH) reported $390.85 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 19.8%. EPS of $0.72 for the same period compares to $1.14 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $420.15 million, representing a surprise of -6.97%. The company delivered an EPS surprise of -29.41%, with the consensus EPS estimate being $1.02.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall St ...

[First Quarter 2024 Financial and Operational Review](index=1&type=section&id=First%20Quarter%202024%20Financial%20and%20Operational%20Review) LGI Homes reported mixed Q1 2024 results, with decreased closings but strong demand, expanding communities, and maintained margins, alongside detailed financial statements and segment performance [First Quarter 2024 Highlights](index=1&type=section&id=First%20Quarter%202024%20Highlights) LGI Homes reported mixed results for Q1 2024, with a decrease in home closings but positive trends in demand, sales, and an expansion of active communities, while successfully maintaining its gross and adjusted gross margins [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlights strong demand, expanding community count, and maintained margins despite fewer closings, with positive trends continuing into April - Despite fewer closings, **positive lead and sales trends**, an **expanding community count**, and **maintained margins** signal healthy demand, bolstered by strong demographics and limited affordable home supply[5](index=5&type=chunk) - Demand significantly improved each month during the quarter, resulting in **1,335 homes in backlog** by quarter-end[6](index=6&type=chunk) - **Gross margin increased by 310 basis points year-over-year to 23.4%**, and **adjusted gross margin rose by 320 basis points year-over-year (20 basis points sequentially) to 25.3%**[7](index=7&type=chunk) - The company concluded the quarter with a **record 120 active communities**, representing a **21.2% increase** over the prior year[8](index=8&type=chunk) - Positive demand trends persisted into April, yielding **over 800 net sales** in each of the last two months and an **absorption pace of six homes per community per month**[8](index=8&type=chunk) [Key Financial and Operational Metrics](index=1&type=section&id=Key%20Financial%20and%20Operational%20Metrics) This section presents a summary of LGI Homes' key financial and operational performance indicators for the first quarter of 2024 First Quarter 2024 Key Financial and Operational Metrics | Metric | Value | | :------------------------------------- | :------------------- | | Home sales revenues | $390.9 million | | Home closings | 1,083 | | Average sales price per home closed | $360,897 | | Gross margin as % of home sales revenues | 23.4% | | Adjusted gross margin (non-GAAP) as % of home sales revenues | 25.3% | | Net income before income taxes | $23.1 million | | Net income | $17.1 million | | Basic EPS | $0.72 | | Diluted EPS | $0.72 | | Active selling communities at March 31, 2024 | 120 | | Total owned and controlled lots | 70,145 | | Ending backlog (homes) | 1,335 | | Ending backlog (value) | $519.5 million | | Common stock repurchased (Q1 2024) | 89,227 shares for $10.0 million | | Total liquidity at March 31, 2024 | $491.5 million | | Net debt to capitalization at March 31, 2024 | 41.6% | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements for Q1 2024 show a decrease in home sales revenues and net income compared to the prior year, while the balance sheet reflects an increase in real estate inventory and notes payable from the end of 2023 [Consolidated Statements of Operations](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) This section details the company's revenues, costs, and net income for the three months ended March 31, comparing 2024 to 2023 Consolidated Statements of Operations (Three Months Ended March 31) | Metric | 2024 ($ thousands) | 2023 ($ thousands) | | :-------------------------- | :------------------ | :------------------ | | Home sales revenues | $390,851 | $487,357 | | Cost of sales | $299,450 | $388,541 | | Selling expenses | $41,128 | $42,805 | | General and administrative | $31,540 | $29,960 | | Operating income | $18,733 | $26,051 | | Net income before income taxes | $23,094 | $32,348 | | Income tax provision | $6,041 | $5,386 | | Net income | $17,053 | $26,962 | | Basic EPS | $0.72 | $1.15 | | Diluted EPS | $0.72 | $1.14 | [Consolidated Balance Sheets](index=4&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) This section provides a snapshot of the company's assets, liabilities, and equity as of March 31, 2024, compared to December 31, 2023 Consolidated Balance Sheets (As of March 31, 2024 vs. December 31, 2023) | Metric | March 31, 2024 ($ thousands) | December 31, 2023 ($ thousands) | | :-------------------------- | :---------------------------- | :----------------------------- | | **ASSETS** | | | | Cash and cash equivalents | $48,996 | $48,978 | | Accounts receivable | $27,151 | $41,319 | | Real estate inventory | $3,229,100 | $3,107,648 | | Property and equipment, net | $49,775 | $45,522 | | 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 | | Total equity | $1,869,203 | $1,856,031 | | Total liabilities and equity | $3,522,886 | $3,407,851 | [Non-GAAP Measures: Adjusted Gross Margin](index=6&type=section&id=Non-GAAP%20Measures) LGI Homes utilizes Adjusted Gross Margin as a non-GAAP financial measure to provide a clearer view of operating performance by excluding the impact of capitalized interest and purchase accounting adjustments from the GAAP gross margin - Adjusted gross margin is a non-GAAP measure utilized by management to assess operating performance, defined as gross margin excluding capitalized interest and purchase accounting adjustments within the cost of sales[21](index=21&type=chunk) Reconciliation of Gross Margin to Adjusted Gross Margin (Three Months Ended March 31) | Metric | 2024 ($ thousands) | 2023 ($ thousands) | | :------------------------------------- | :------------------ | :------------------ | | Home sales revenues | $390,851 | $487,357 | | Cost of sales | $299,450 | $388,541 | | Gross margin | $91,401 | $98,816 | | Capitalized interest charged to cost of sales | $6,601 | $6,757 | | Purchase accounting adjustments | $803 | $2,036 | | Adjusted gross margin | $98,805 | $107,609 | | Gross margin % | 23.4% | 20.3% | | Adjusted gross margin % | 25.3% | 22.1% | [Segment Performance](index=6&type=section&id=Home%20Sales%20Revenues%2C%20Home%20Closings%2C%20Average%20Sales%20Price%20Per%20Home%20Closed%20(ASP)%2C%20Average%20Community%20Count%2C%20Average%20Monthly%20Absorption%20Rate%20and%20Closing%20Community%20Count%20by%20Reportable%20Segment) In Q1 2024, all reportable segments experienced a decrease in home sales revenues and closings compared to Q1 2023, while the average community count increased across all segments, contributing to a higher total community count at period end Segment Performance (Three Months Ended March 31, 2024) | Reportable Segment | Revenues ($ thousands) | Home Closings | ASP | Average Community Count | Average Monthly Absorption Rate | Community Count at End of Period | | :----------------- | :---------------------- | :------------ | :-------- | :---------------------- | :------------------------------ | :------------------------------- | | Central | $103,736 | 319 | $325,191 | 41.7 | 2.5 | 43 | | Southeast | $116,445 | 355 | $328,014 | 26.7 | 4.4 | 27 | | Northwest | $36,067 | 62 | $581,726 | 12.0 | 1.7 | 14 | | West | $73,079 | 179 | $408,263 | 17.0 | 3.5 | 17 | | Florida | $61,524 | 168 | $366,214 | 19.3 | 2.9 | 19 | | **Total** | **$390,851** | **1,083** | **$360,897** | **116.7** | **3.1** | **120** | Segment Performance (Three Months Ended March 31, 2023) | Reportable Segment | Revenues ($ thousands) | Home Closings | ASP | Average Community Count | Average Monthly Absorption Rate | Community Count at End of Period | | :----------------- | :---------------------- | :------------ | :-------- | :---------------------- | :------------------------------ | :------------------------------- | | Central | $150,380 | 453 | $331,965 | 35.0 | 4.3 | 35 | | Southeast | $104,376 | 316 | $330,304 | 24.0 | 4.4 | 24 | | Northwest | $74,815 | 159 | $470,535 | 9.3 | 5.7 | 10 | | West | $78,886 | 209 | $377,445 | 13.4 | 5.2 | 14 | | Florida | $78,900 | 229 | $344,541 | 16.0 | 4.8 | 16 | | **Total** | **$487,357** | **1,366** | **$356,777** | **97.7** | **4.7** | **99** | [Lot Inventory and Backlog Data](index=7&type=section&id=Owned%20and%20Controlled%20Lots) As of March 31, 2024, LGI Homes held 70,145 total owned and controlled lots, with a significant portion being raw/under development. The ending backlog decreased year-over-year in both homes and value, while the cancellation rate slightly increased Owned and Controlled Lots by Reportable Segment (As of March 31, 2024) | Reportable Segment | Home Closings (Q1 2024) | Owned Lots | Controlled Lots | Total Lots | | :----------------- | :---------------------- | :--------- | :-------------- | :--------- | | Central | 319 | 20,840 | 2,279 | 23,119 | | Southeast | 355 | 14,191 | 4,720 | 18,911 | | Northwest | 62 | 5,500 | 2,141 | 7,641 | | West | 179 | 9,068 | 3,031 | 12,099 | | Florida | 168 | 5,164 | 3,211 | 8,375 | | **Total** | **1,083** | **54,763** | **15,382** | **70,145** | - Of the **54,763 owned lots**, **39,601 were raw/under development** and **15,162 were finished lots** (including **2,154 completed homes** and **2,000 homes in progress**)[26](index=26&type=chunk) Backlog Data (Three Months Ended March 31) | Backlog Data | 2024 | 2023 | | :-------------------- | :--- | :--- | | Net orders | 1,828 | 2,219 | | Cancellation rate | 16.8% | 15.9% | | Ending backlog – homes | 1,335 | 1,555 | | Ending backlog – value ($ thousands) | $519,507 | $561,422 | [Company Outlook and General Information](index=2&type=section&id=Company%20Outlook%20and%20General%20Information) This section outlines LGI Homes' full-year 2024 guidance, provides an overview of the company, and includes important disclaimers regarding forward-looking statements [Full Year 2024 Outlook](index=2&type=section&id=Full%20Year%202024%20Outlook) LGI Homes is maintaining its previously issued guidance for the full year 2024, based on assumptions of stable general economic conditions, input costs, interest rates, and regulatory environment - The Company maintains its prior guidance for full year 2024, assuming stable general economic conditions, input costs, labor availability, interest rates, and regulatory environment[10](index=10&type=chunk) Full Year 2024 Guidance | Metric | Guidance Range | | :------------------------------------- | :------------------- | | Home closings | 7,000 to 8,000 | | Active selling communities (end of 2024) | Approximately 150 | | Average sales price per home closed | $350,000 to $360,000 | | Gross margin as % of home sales revenues | 23.1% to 24.1% | | Adjusted gross margin (non-GAAP) as % of home sales revenues | 25.0% to 26.0% | | SG&A as % of home sales revenues | 12.5% to 13.5% | | Effective tax rate | 24.0% to 25.0% | [About LGI Homes, Inc.](index=2&type=section&id=About%20LGI%20Homes%2C%20Inc.) LGI Homes, Inc. is a leading homebuilder headquartered in The Woodlands, Texas, recognized for its innovative approach, consistent profitability since 2003, and commitment to quality and customer service across 36 markets in 21 states - **LGI Homes, Inc.** is a pioneer in the homebuilding industry, employing an innovative and systematic approach to home design, construction, and sales[12](index=12&type=chunk) - The company operates across **36 markets in 21 states**, has closed **over 70,000 homes** since its 2003 founding, and has consistently delivered profitable financial results annually[12](index=12&type=chunk) - **LGI Homes** is nationally recognized for quality construction and exceptional customer service, earning a spot on Newsweek's World's Most Trustworthy Companies and awarded Top Workplaces USA 2024[12](index=12&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section clarifies that statements regarding future performance, expectations, and market conditions are forward-looking and inherently subject to various risks, uncertainties, and assumptions, advising readers not to place undue reliance on them - Statements in the press release or Earnings Call that are not historical facts, including beliefs and expectations about future results, constitute forward-looking statements subject to federal securities laws[13](index=13&type=chunk)[15](index=15&type=chunk) - These statements rely on current expectations and assumptions, but actual results may materially differ due to various risks and uncertainties detailed in the Company's SEC filings[15](index=15&type=chunk) - The Company assumes no obligation to update or revise any forward-looking statements, even if new information, future events, or other circumstances emerge[15](index=15&type=chunk) [Earnings Conference Call](index=2&type=section&id=Earnings%20Conference%20Call) LGI Homes hosted a conference call via live webcast on April 30, 2024, to discuss its financial results, with an archive available on the company's investor relations website - The Company hosted a conference call via live webcast for investors on **Tuesday, April 30, 2024, at 12:30 p.m. Eastern Time**[11](index=11&type=chunk) - Participants accessed the live webcast through the Investor Relations section of the Company's website, with an archive available for replay for one year[11](index=11&type=chunk)

jhorrocks Introduction LGI Homes (NASDAQ:LGIH) has seen a relatively good amount of share price volatility over the past 12 months going from low-$100/share to over $130/share down to mid-$80/share, back up to over $130/share, and now down to mid-$90/share. I can't say I'm totally surprised - my casual observations have been that homebuilders are more volatile than general, trading largely with "macro" factors like interest rates. In the end, however, what ultimately matters are cash flows, and to this end, ...

PART I [Business Overview](index=4&type=section&id=Item%201.%20Business) LGI Homes operates in 36 markets across 21 states, building entry-level, active adult, and luxury homes with a focus on efficient construction and strategic land acquisition - LGI Homes operates in **36 markets across 21 states**, offering homes under the LGI Homes brand (entry-level, active adult) and Terrata Homes brand (luxury)[12](index=12&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) Key Operating Metrics | Metric | 2023 | 2022 | | :----------------------------- | :----- | :----- | | Home Closings | 6,729 | 6,621 | | Average Sales Price per Home | $350,510 | $348,052 | | Active Communities (end of year) | 117 | 99 | - The company's strategy involves acquiring finished lots or raw land, often further from urban centers, and maintaining a land pipeline, alongside wholesale home sales and single-family home leasing[18](index=18&type=chunk)[19](index=19&type=chunk)[35](index=35&type=chunk) - LGI Homes employs a direct sales and marketing approach, targeting renters with extensive digital and print advertising and utilizing commission-based sales professionals[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) - Homebuilding operations are organized into seven segments, focusing on standardized floor plans and finishes for efficient, continuous construction and maintaining move-in ready home inventory[23](index=23&type=chunk)[26](index=26&type=chunk) Segmental Homebuilding Data | Segment | 2023 Home Closings | 2023 Owned Lots | 2023 Controlled Lots | 2023 Total Lots | | :-------- | :----------------- | :-------------- | :------------------- | :-------------- | | Central | 2,241 | 20,606 | 3,093 | 23,699 | | Southeast | 1,716 | 14,563 | 5,429 | 19,992 | | Northwest | 511 | 5,934 | 1,652 | 7,586 | | West | 992 | 9,049 | 2,747 | 11,796 | | Florida | 1,269 | 5,179 | 2,829 | 8,008 | | **Total** | **6,729** | **55,331** | **15,750** | **71,081** | [Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) The company faces operational, industry, economic, regulatory, financial, and cybersecurity risks that could impact its business and financial performance - Operational risks include challenges in acquiring suitable land, labor and raw material shortages, price fluctuations, and supply chain constraints, potentially delaying construction and increasing costs[72](index=72&type=chunk)[73](index=73&type=chunk)[76](index=76&type=chunk) - Industry and economic risks stem from higher mortgage interest rates, tightening lending standards, inflation, and housing market downturns, potentially decreasing demand and increasing cancellation rates[72](index=72&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[100](index=100&type=chunk) - The homebuilding industry is highly competitive, facing risks from national, regional, and local builders, as well as existing home sales and rental markets[52](index=52&type=chunk)[105](index=105&type=chunk) - Regulatory risks involve compliance with zoning, development, environmental, health, and safety laws, which may lead to delays, increased costs, or development restrictions[47](index=47&type=chunk)[48](index=48&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) - Financial risks include leverage, potential difficulties in securing sufficient capital, and the impact of financial market turmoil on liquidity and financing access[143](index=143&type=chunk)[152](index=152&type=chunk)[179](index=179&type=chunk) - Cybersecurity incidents, data breaches, and information system failures pose significant risks to business operations, financial data, and reputation[170](index=170&type=chunk)[171](index=171&type=chunk) [Unresolved Staff Comments](index=36&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved staff comments from the SEC regarding its filings - The company has no unresolved staff comments[187](index=187&type=chunk) [Cybersecurity](index=36&type=section&id=Item%201C.%20Cybersecurity) LGI Homes maintains a comprehensive cybersecurity risk management program, overseen by IT leadership and the Board, with no material incidents reported to date - LGI Homes integrates cybersecurity risk management into its broader risk framework, aligning with NIST and CIS Critical Security Controls[188](index=188&type=chunk) - The company employs processes for prevention, detection, mitigation, and remediation, including incident response plans, safeguards, employee training, and third-party assessments[189](index=189&type=chunk)[190](index=190&type=chunk)[192](index=192&type=chunk)[196](index=196&type=chunk) - Cybersecurity risk management is overseen by the Vice President, Information Technology, and the Board of Directors, with semi-annual updates to the Board[195](index=195&type=chunk)[197](index=197&type=chunk) - As of the report date, LGI Homes has not experienced cybersecurity incidents materially affecting its operations or financial standing[194](index=194&type=chunk) [Properties](index=37&type=section&id=Item%202.%20Properties) LGI Homes leases its corporate headquarters in Texas and additional offices across various states, while also owning or controlling properties for land development - The company leases approximately **25,000 square feet** for its corporate headquarters in The Woodlands, Texas, with the lease expiring in **2028**[199](index=199&type=chunk) - LGI Homes leases additional offices across 14 states, including Arizona, California, Colorado, Florida, Georgia, Maryland, Minnesota, Nevada, North Carolina, Oregon, Tennessee, Texas, Utah, and Washington[199](index=199&type=chunk) [Legal Proceedings](index=38&type=section&id=Item%203.%20Legal%20Proceedings) LGI Homes faces routine legal claims and proceedings typical for the industry, which management does not expect to materially impact financial results - The company faces claims and proceedings in the ordinary course of business related to real estate and homebuilding[201](index=201&type=chunk) - Management assesses these matters as usual obligations for the industry and does not expect a material effect on consolidated financial position, results of operations, or cash flows[201](index=201&type=chunk) [Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to LGI Homes, Inc - Mine Safety Disclosures are not applicable to the registrant[202](index=202&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=39&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) LGI Homes' common stock trades on NASDAQ under 'LGIH', with an authorized stock repurchase program and no cash dividends paid to date - LGI Homes' common stock is traded on the NASDAQ Stock Market under the symbol **'LGIH'**[205](index=205&type=chunk) - As of December 31, 2023, the company had **$211.5 million** remaining under its **$550.0 million** stock repurchase program, with no shares repurchased during the three months ended December 31, 2023[206](index=206&type=chunk)[207](index=207&type=chunk) - The company has not previously declared or paid any cash dividends on its common stock[208](index=208&type=chunk) Cumulative Total Return (Indexed to $100) | Date | LGIH | S&P 500 Index | S&P Homebuilders Index | | :--------- | :----- | :------------ | :--------------------- | | 12/31/2018 | $100.00 | $100.00 | $100.00 | | 12/31/2019 | $156.24 | $128.88 | $140.12 | | 12/31/2020 | $234.08 | $149.83 | $176.78 | | 12/31/2021 | $341.62 | $190.13 | $263.06 | | 12/31/2022 | $204.78 | $153.16 | $185.08 | | 12/31/2023 | $294.47 | $190.82 | $291.68 | [Reserved](index=40&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes LGI Homes' financial condition and results of operations for 2023 and 2022, covering key financial metrics, liquidity, capital resources, and critical accounting policies [Key Results](index=41&type=section&id=Key%20Results) This section presents a summary of LGI Homes' key financial and operational results for 2023 compared to 2022 Key Financial Results (YoY Change 2023 vs 2022) | Metric | 2023 | 2022 | Change (%) | | :------------------------------------ | :----------- | :----------- | :--------- | | Home sales revenues | $2.4 billion | $2.3 billion | +2.3% | | Homes closed | 6,729 | 6,621 | +1.6% | | Average sales price per home closed | $350,510 | $348,052 | +0.7% | | Gross margin as % of home sales revenues | 23.0% | 28.1% | -5.1 pp | | Adjusted gross margin as % of home sales revenues | 24.7% | 29.2% | -4.5 pp | | Net income before income taxes | $261.8 million | $418.1 million | -37.4% | | Net income | $199.2 million | $326.6 million | -39.0% | | EBITDA as % of home sales revenues | 12.6% | 19.1% | -6.5 pp | | Adjusted EBITDA as % of home sales revenues | 11.7% | 18.2% | -6.5 pp | | Active communities at end of year | 117 | 99 | +18.2% | | Total owned and controlled lots | 71,081 | 71,904 | -1.1% | [Results of Operations](index=42&type=section&id=Results%20of%20Operations) This section details the company's consolidated statements of operations and provides a year-over-year comparison of financial performance Consolidated Statements of Operations (in thousands) | Metric | 2023 | 2022 | 2021 | | :-------------------------- | :----------- | :----------- | :----------- | | Home sales revenues | $2,358,580 | $2,304,455 | $3,050,149 | | Cost of sales | $1,816,393 | $1,657,855 | $2,232,115 | | Selling expenses | $191,582 | $144,928 | $170,005 | | General and administrative | $117,350 | $111,565 | $100,331 | | Operating income | $233,255 | $390,107 | $547,698 | | Net income before income taxes | $261,754 | $418,116 | $542,775 | | Income tax provision | $62,527 | $91,549 | $113,130 | | Net income | $199,227 | $326,567 | $429,645 | | Basic earnings per share | $8.48 | $13.90 | $17.46 | | Diluted earnings per share | $8.42 | $13.76 | $17.25 | | Average community count | 103.9 | 91.9 | 104.4 | | Community count at end of period | 117 | 99 | 101 | | Home closings | 6,729 | 6,621 | 10,442 | | Average sales price per home closed | $350,510 | $348,052 | $292,104 | | Gross margin % | 23.0% | 28.1% | 26.8% | [Year Ended December 31, 2023 Compared to Year Ended December 31, 2022](index=44&type=section&id=Year%20Ended%20December%2031%2C%202023%20Compared%20to%20Year%20Ended%20December%2031%2C%202022) This section provides a detailed comparison of LGI Homes' financial performance for the fiscal years 2023 and 2022 - Home sales revenues increased **2.3% to $2.4 billion** in 2023, driven by a **1.6% increase in home closings** and a **0.7% increase in average sales price**, supported by a higher average community count despite lower absorption due to higher mortgage rates[221](index=221&type=chunk) - Wholesale home closings decreased significantly from **1,233 in 2022 (18.6% of total)** to **679 in 2023 (10.1% of total)**, positively impacting the overall average sales price[34](index=34&type=chunk)[222](index=222&type=chunk) - Cost of sales increased **9.6% to $1.8 billion** in 2023, primarily due to higher construction costs, capitalized interest, and increased home closings, leading to a decrease in gross margin from **28.1% in 2022 to 23.0% in 2023**[224](index=224&type=chunk) - Selling expenses rose **32.2% to $191.6 million** in 2023, increasing as a percentage of home sales revenues from **6.3% to 8.1%**, driven by higher advertising, fewer wholesale closings, and increased outside commissions[225](index=225&type=chunk) - General and administrative expenses increased **5.2% to $117.4 million**, primarily due to higher personnel-related costs and indirect overhead, partially offset by lower payroll-related costs and terminated land purchase expenses[226](index=226&type=chunk) - Net income before income taxes decreased **37.4% to $261.8 million** in 2023, and net income decreased **39.0% to $199.2 million**, primarily due to lower gross margin and higher selling expenses[228](index=228&type=chunk)[230](index=230&type=chunk) [Non-GAAP Measures](index=46&type=section&id=Non-GAAP%20Measures) The company provides non-GAAP measures like Adjusted Gross Margin, EBITDA, and Adjusted EBITDA to offer supplemental insights into operating performance, excluding certain non-cash or non-recurring items Adjusted Gross Margin Reconciliation (in thousands) | Metric | 2023 | 2022 | 2021 | | :------------------------------------ | :----------- | :----------- | :----------- | | Home sales revenues | $2,358,580 | $2,304,455 | $3,050,149 | | Cost of sales | $1,816,393 | $1,657,855 | $2,232,115 | | Gross margin | $542,187 | $646,600 | $818,034 | | Capitalized interest charged to cost of sales | $33,368 | $20,276 | $37,546 | | Purchase accounting adjustments | $6,492 | $6,869 | $4,964 | | **Adjusted gross margin** | **$582,047** | **$673,745** | **$860,544** | | Gross margin % | 23.0% | 28.1% | 26.8% | | Adjusted gross margin % | 24.7% | 29.2% | 28.2% | EBITDA and Adjusted EBITDA Reconciliation (in thousands) | Metric | 2023 | 2022 | 2021 | | :------------------------------------ | :----------- | :----------- | :----------- | | Net income | $199,227 | $326,567 | $429,645 | | Income tax provision | $62,527 | $91,549 | $113,130 | | Depreciation and amortization | $2,408 | $1,576 | $1,154 | | Capitalized interest charged to cost of sales | $33,368 | $20,276 | $37,546 | | **EBITDA** | **$297,530** | **$439,968** | **$581,475** | | Purchase accounting adjustments | $6,492 | $6,869 | $4,964 | | Loss on extinguishment of debt | — | — | $13,976 | | Other income, net | ($28,499) | ($28,009) | ($9,053) | | **Adjusted EBITDA** | **$275,523** | **$418,828** | **$591,362** | | EBITDA margin % | 12.6% | 19.1% | 19.1% | | Adjusted EBITDA margin % | 11.7% | 18.2% | 19.4% | [Backlog](index=48&type=section&id=Backlog) The company's backlog comprises homes under purchase or wholesale contracts, typically closing within one to two months, with an increased cancellation rate and decreased ending backlog in 2023 due to higher mortgage rates - Backlog includes homes under purchase contracts with preliminary financing met and wholesale contracts; most are under construction or complete and close within **1-2 months**[240](index=240&type=chunk) - Net orders increased in 2023 due to higher average community count, but wholesale orders decreased **61.8% to 60 units**[241](index=241&type=chunk) Backlog Data | Metric | 2023 | 2022 | 2021 | | :-------------------- | :----- | :----- | :----- | | Net orders | 6,617 | 5,268 | 9,533 | | Cancellation rate | 25.4% | 24.4% | 19.3% | | Ending backlog - homes | 590 | 702 | 2,055 | | Ending backlog - value | $224,851 | $252,002 | $659,234 | - The ending backlog decreased **16.0%** in 2023 compared to 2022, primarily due to continued increases in mortgage rates[242](index=242&type=chunk) [Seasonality](index=49&type=section&id=Seasonality) The homebuilding industry is seasonal, with LGI Homes typically closing more homes in the latter half of the year, leading to quarterly fluctuations in operating results and capital requirements - The homebuilding industry generally exhibits seasonality, with LGI Homes historically closing more homes in the **second, third, and fourth quarters**[244](index=244&type=chunk) - Quarterly operating results and financial position, especially in the first quarter, are not necessarily representative of year-end results due to seasonal patterns[245](index=245&type=chunk) [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) LGI Homes manages liquidity through operating cash flows, a revolving credit facility, and land banking, with capital primarily used for land, development, construction, and debt servicing - As of December 31, 2023, LGI Homes had **$49.0 million** in cash and cash equivalents[246](index=246&type=chunk) - Principal uses of capital include operating expenses, land/lot purchases, lot development, home construction, interest costs, and stock repurchases[247](index=247&type=chunk) - The company relies on operating cash flows and a **$1.205 billion** revolving credit facility for short-term liquidity, expecting to fund long-term needs through operations and available credit, potentially accessing debt or equity markets[248](index=248&type=chunk)[250](index=250&type=chunk)[257](index=257&type=chunk) Material Cash Requirements (in thousands) | Obligation | Total | < 1 year | 1 - 3 years | 3 - 5 years | More than 5 years | | :------------------------------ | :---------- | :--------- | :---------- | :---------- | :---------------- | | Credit Agreement | $569,816 | — | $115,818 | $453,998 | — | | Senior Notes | $700,000 | — | — | $400,000 | $300,000 | | Land banking financing arrangements | $104,459 | $61,337 | $43,122 | — | — | | Interest and fees | $435,226 | $91,362 | $181,077 | $162,787 | — | | Operating Leases | $5,604 | $1,535 | $2,452 | $1,604 | $13 | | **Total** | **$1,815,105** | **$154,234** | **$342,469** | **$1,018,389** | **$300,013** | - As of December 31, 2023, **$354.8 million** was available to borrow under the Credit Agreement, which has a borrowing base of **$1.7 billion**[259](index=259&type=chunk) - The company issued **$400.0 million** in **8.750% Senior Notes due December 15, 2028**, in November 2023, and has **$300.0 million** in **4.000% Senior Notes due July 15, 2029**[261](index=261&type=chunk)[262](index=262&type=chunk) Cash Flows (in thousands) | Activity | 2023 | 2022 | 2021 | | :------------------------------------ | :----------- | :----------- | :----------- | | Net cash provided by (used in) operating activities | ($56,968) | ($370,451) | $21,700 | | Net cash used in investing activities | ($13,648) | ($5,968) | ($70,391) | | Net cash provided by financing activities | $87,596 | $357,903 | $63,263 | | Net increase (decrease) in cash and cash equivalents | $16,980 | ($18,516) | $14,572 | | Cash and cash equivalents, end of year | $48,978 | $31,998 | $50,514 | [Inflation](index=53&type=section&id=Inflation) Inflation negatively impacts LGI Homes by increasing costs for land, financing, labor, and materials, and by raising mortgage rates, reducing home affordability and demand - Inflation adversely affects LGI Homes by increasing costs for land, financing, labor, and materials[275](index=275&type=chunk) - Higher inflation can lead to increased mortgage rates, reducing homebuyers' ability to obtain financing and decreasing demand for homes[275](index=275&type=chunk) - The company has experienced significant increases in land, labor, materials, and construction costs, and may be unable to raise sales prices sufficiently to offset these, leading to decreased profit margins[92](index=92&type=chunk)[275](index=275&type=chunk) [Critical Accounting Policies and Estimates](index=53&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) LGI Homes' financial statements rely on critical accounting policies and estimates for revenue recognition, inventory valuation, warranty reserves, business acquisitions, and income taxes - Home sales revenue is recognized when control of the completed home is transferred to the customer at closing[277](index=277&type=chunk) - Real estate inventory is stated at cost, including capitalized land, development, and construction costs, and is evaluated for impairment each reporting period[278](index=278&type=chunk)[279](index=279&type=chunk)[282](index=282&type=chunk) - Warranty reserves are accrued and charged to cost of sales based on historical warranty cost experience, adjusted for qualitative risks and expansion impacts[287](index=287&type=chunk)[288](index=288&type=chunk) - Business acquisitions are accounted for using the acquisition method, requiring significant estimates for fair value of acquired assets, particularly real estate inventory[290](index=290&type=chunk) - Income taxes are accounted for using the liability method, recognizing deferred tax assets and liabilities, and requiring judgment in evaluating tax positions[291](index=291&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) LGI Homes is exposed to interest rate risk, impacting housing demand and financing costs, with a hypothetical 100 basis point increase in variable rates raising annual interest costs by $5.7 million - The company's operations are sensitive to interest rate fluctuations, which can adversely affect housing demand and financing costs[293](index=293&type=chunk) - LGI Homes utilizes both fixed-rate debt (Senior Notes) and variable-rate debt (Credit Agreement) for financing[294](index=294&type=chunk) - As of December 31, 2023, the company had **$569.6 million** in variable-rate indebtedness under the Credit Agreement, bearing interest at SOFR plus **1.85%**[296](index=296&type=chunk) - A hypothetical **100 basis point** increase in the average interest rate above the SOFR floor would increase annual interest costs by approximately **$5.7 million**[296](index=296&type=chunk) [Financial Statements and Supplementary Data](index=57&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents LGI Homes' audited consolidated financial statements for 2021-2023, including the independent auditor's report and detailed notes on accounting policies and financial components [REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM](index=57&type=section&id=REPORT%20OF%20INDEPENDENT%20REGISTERED%20PUBLIC%20ACCOUNTING%20FIRM) This section contains the independent auditor's report on the consolidated financial statements and internal control over financial reporting - Ernst & Young LLP issued an unqualified opinion on the consolidated financial statements for the period ended December 31, 2023, and on the effectiveness of internal control over financial reporting[300](index=300&type=chunk)[301](index=301&type=chunk) - The critical audit matter identified was the measurement of land development costs, due to significant estimation required for costs to complete, project schedules, and labor/material costs[306](index=306&type=chunk) [CONSOLIDATED BALANCE SHEETS](index=59&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) This section presents the company's consolidated balance sheets as of December 31, 2023, and December 31, 2022 Consolidated Balance Sheets (in thousands) | Asset/Liability/Equity | December 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------------ | :------------------ | | **ASSETS** | | | | Cash and cash equivalents | $48,978 | $31,998 | | Accounts receivable | $41,319 | $25,143 | | Real estate inventory | $3,107,648 | $2,898,296 | | Pre-acquisition costs and deposits | $30,354 | $25,031 | | Property and equipment, net | $45,522 | $32,997 | | Other assets | $113,849 | $93,159 | | Deferred tax assets, net | $8,163 | $6,186 | | Goodwill | $12,018 | $12,018 | | **Total assets** | **$3,407,851** | **$3,124,828** | | **LIABILITIES AND EQUITY** | | | | Accounts payable | $31,616 | $25,287 | | Accrued expenses and other liabilities | $271,872 | $340,128 | | Notes payable | $1,248,332 | $1,117,001 | | **Total liabilities** | **$1,551,820** | **$1,482,416** | | Common stock | $275 | $272 | | Additional paid-in capital | $321,062 | $306,673 | | Retained earnings | $1,889,716 | $1,690,489 | | Treasury stock | ($355,022) | ($355,022) | | **Total equity** | **$1,856,031** | **$1,642,412** | | **Total liabilities and equity** | **$3,407,851** | **$3,124,828** | [CONSOLIDATED STATEMENTS OF OPERATIONS](index=60&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) This section presents the company's consolidated statements of operations for the years ended December 31, 2023, 2022, and 2021 Consolidated Statements of Operations (in thousands) | Metric | 2023 | 2022 | 2021 | | :-------------------------- | :----------- | :----------- | :----------- | | Home sales revenues | $2,358,580 | $2,304,455 | $3,050,149 | | Cost of sales | $1,816,393 | $1,657,855 | $2,232,115 | | Selling expenses | $191,582 | $144,928 | $170,005 | | General and administrative | $117,350 | $111,565 | $100,331 | | Operating income | $233,255 | $390,107 | $547,698 | | Loss on extinguishment of debt | — | — | $13,976 | | Other income, net | ($28,499) | ($28,009) | ($9,053) | | Net income before income taxes | $261,754 | $418,116 | $542,775 | | Income tax provision | $62,527 | $91,549 | $113,130 | | Net income | $199,227 | $326,567 | $429,645 | | Basic earnings per share | $8.48 | $13.90 | $17.46 | | Diluted earnings per share | $8.42 | $13.76 | $17.25 | | Weighted average shares outstanding (Basic) | 23,507,136 | 23,486,465 | 24,607,231 | | Weighted average shares outstanding (Diluted) | 23,648,548 | 23,730,770 | 24,908,991 | [CONSOLIDATED STATEMENTS OF EQUITY](index=61&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20EQUITY) This section presents the company's consolidated statements of equity for the years ended December 31, 2020, 2021, 2022, and 2023 Consolidated Statements of Equity (in thousands) | Metric | Dec 31, 2020 | Dec 31, 2021 | Dec 31, 2022 | Dec 31, 2023 | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | | Total Equity | $1,139,005 | $1,395,848 | $1,642,412 | $1,856,031 | | Net income | | $429,645 | $326,567 | $199,227 | | Stock repurchase | ($193,783) | ($95,102) | — | | Compensation expense for equity awards | $13,595 | $9,188 | $8,926 | | Stock issued under employee incentive plans | $7,114 | $5,617 | $5,260 | [CONSOLIDATED STATEMENTS OF CASH FLOWS](index=62&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) This section presents the company's consolidated statements of cash flows for the years ended December 31, 2023, 2022, and 2021 Consolidated Statements of Cash Flows (in thousands) | Activity | 2023 | 2022 | 2021 | | :------------------------------------ | :----------- | :----------- | :----------- | | Net cash provided by (used in) operating activities | ($56,968) | ($370,451) | $21,700 | | Net cash used in investing activities | ($13,648) | ($5,968) | ($70,391) | | Net cash provided by financing activities | $87,596 | $357,903 | $63,263 | | Net increase (decrease) in cash and cash equivalents | $16,980 | ($18,516) | $14,572 | | Cash and cash equivalents, end of year | $48,978 | $31,998 | $50,514 | [NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS](index=63&type=section&id=NOTES%20TO%20THE%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed notes to the consolidated financial statements, explaining significant accounting policies and financial disclosures [1. ORGANIZATION AND BUSINESS](index=63&type=section&id=1.%20ORGANIZATION%20AND%20BUSINESS) This note describes LGI Homes' corporate structure, business activities, and recent acquisitions - LGI Homes, Inc. is a Delaware corporation headquartered in The Woodlands, Texas, engaged in community development, design, construction, and sale of new homes across **21 states**[322](index=322&type=chunk) - In 2021, the company acquired real estate assets from KenRoe Inc. and Buffington Homebuilding Group, Ltd., expanding its presence in Minnesota and Austin, Texas, respectively[323](index=323&type=chunk)[324](index=324&type=chunk) [2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=63&type=section&id=2.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the significant accounting policies and estimates used in preparing the company's financial statements - Financial statements are prepared in accordance with GAAP, requiring management estimates for land development costs, inventory impairment, warranty reserves, and income taxes[325](index=325&type=chunk)[326](index=326&type=chunk) - Real estate inventory is stated at cost, including capitalized land, development, and construction costs, and is written down to fair value if not recoverable; no impairment charges were recorded in **2021-2023**[329](index=329&type=chunk)[330](index=330&type=chunk)[334](index=334&type=chunk) - The company uses land banking financing arrangements, where assets are held as 'real estate not owned' with a corresponding obligation, to acquire finished lots in staged takedowns[332](index=332&type=chunk) - Goodwill, related to the **2013 IPO**, is not amortized but assessed for impairment annually using a qualitative test; no impairment charges were recorded in **2021-2023**[345](index=345&type=chunk) - Revenue from home sales is recognized when control is transferred at closing, and warranty costs are accrued and charged to cost of sales based on historical experience[346](index=346&type=chunk)[349](index=349&type=chunk) - Recently issued ASUs **2023-09 (Income Tax Disclosures)** and **2023-07 (Segment Reporting)** are being evaluated for their impact on future financial statements[357](index=357&type=chunk)[358](index=358&type=chunk) [3. REAL ESTATE INVENTORY](index=70&type=section&id=3.%20REAL%20ESTATE%20INVENTORY) This note provides a breakdown of the company's real estate inventory, including owned and not owned categories Real Estate Inventory (in thousands) | Category | December 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------------ | :------------------ | | Land, land under development, and finished lots | $2,099,133 | $1,911,307 | | Information centers | $47,936 | $35,074 | | Homes in progress | $313,124 | $287,069 | | Completed homes | $542,996 | $523,054 | | **Total owned inventory** | **$3,003,189** | **$2,756,504** | | Real estate not owned | $104,459 | $141,792 | | **Total real estate inventory** | **$3,107,648** | **$2,898,296** | - Real estate not owned relates to land banking financing arrangements, where the company repurchases land sold to a third-party land banker to acquire finished lots in staged takedowns[359](index=359&type=chunk) [4. PROPERTY AND EQUIPMENT](index=71&type=section&id=4.%20PROPERTY%20AND%20EQUIPMENT) This note details the company's property and equipment, net, including categories and depreciation expense Property and Equipment, Net (in thousands) | Category | December 31, 2023 | December 31, 2022 | | :-------------------------- | :------------------ | :------------------ | | Rental properties | $43,324 | $29,833 | | Computer software and equipment | $3,946 | $3,894 | | Leasehold improvements | $1,722 | $1,466 | | Furniture and fixtures | $2,091 | $1,060 | | Machinery and equipment | $231 | $127 | | **Total property and equipment** | **$51,314** | **$36,380** | | Less: Accumulated depreciation | ($5,792) | ($3,383) | | **Property and equipment, net** | **$45,522** | **$32,997** | - In 2023, **$13.5 million** of home assets were transferred from real estate inventory to rental properties[361](index=361&type=chunk) - Depreciation expense was **$2.4 million** in 2023, up from **$1.6 million** in 2022 and **$1.1 million** in 2021[362](index=362&type=chunk) [5. ACCRUED EXPENSES AND OTHER LIABILITIES](index=71&type=section&id=5.%20ACCRUED%20EXPENSES%20AND%20OTHER%20LIABILITIES) This note provides a detailed breakdown of the company's accrued expenses and other liabilities Accrued Expenses and Other Liabilities (in thousands) | Category | December 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------------ | :------------------ | | Land banking financing arrangements | $104,459 | $141,792 | | Real estate inventory development and construction payable | $71,193 | $73,678 | | Accrued compensation, bonuses and benefits | $22,550 | $12,900 | | Taxes payable | $14,694 | $47,037 | | Warranty reserve | $13,600 | $10,750 | | Accrued interest | $13,522 | $10,906 | | Inventory related obligations | $11,924 | $13,039 | | Lease liability | $4,947 | $5,182 | | Contract deposits | $2,909 | $5,545 | | Other | $12,074 | $19,299 | | **Total accrued expenses and other liabilities** | **$271,872** | **$340,128** | - Land banking financing arrangements decreased from **$141.8 million** in 2022 to **$104.5 million** in 2023, with principal payments generally coinciding with lot repurchases over **1-3 years**[363](index=363&type=chunk)[364](index=364&type=chunk) - Warranty reserves increased to **$13.6 million** in 2023 from **$10.8 million** in 2022, reflecting a provision of **$8.5 million** and expenditures of **$5.7 million**[363](index=363&type=chunk)[366](index=366&type=chunk) [6. NOTES PAYABLE](index=72&type=section&id=6.%20NOTES%20PAYABLE) This note details the company's notes payable, including its revolving credit facility and senior notes - The company's revolving credit facility is **$1.205 billion**, maturing in part on **April 28, 2025 (20.3%)** and **April 28, 2028 (79.7%)**[367](index=367&type=chunk) - As of December 31, 2023, borrowings under the Credit Agreement totaled **$569.6 million**, with **$354.8 million** available to borrow[369](index=369&type=chunk) - The company issued **$400.0 million** of **8.750% Senior Notes due December 15, 2028**, in November 2023, and has **$300.0 million** of **4.000% Senior Notes due July 15, 2029**[372](index=372&type=chunk)[374](index=374&type=chunk) Notes Payable (in thousands) | Category | December 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------------ | :------------------ | | Credit Agreement borrowings | $569,633 | $828,350 | | 4.000% Senior Notes due 2029 | $300,000 | $300,000 | | 8.750% Senior Notes due 2028 | $400,000 | — | | Net debt issuance costs | ($21,301) | ($11,349) | | **Total notes payable** | **$1,248,332** | **$1,117,001** | - Interest incurred was **$87.6 million** in 2023, all of which was capitalized to inventory[377](index=377&type=chunk) [7. INCOME TAXES](index=74&type=section&id=7.%20INCOME%20TAXES) This note provides information on the company's income tax provision and deferred tax assets and liabilities Provision for Income Taxes (in thousands) | Category | 2023 | 2022 | 2021 | | :-------------------------- | :----------- | :----------- | :----------- | | Current tax provision | $64,505 | $91,537 | $112,342 | | Deferred tax provision (benefit) | ($1,978) | $12 | $788 | | **Total income tax provision** | **$62,527** | **$91,549** | **$113,130** | | Income taxes paid | $96,500 | $56,900 | $127,900 | - The effective tax rate increased to **23.9%** in 2023 from **21.9%** in 2022, primarily due to higher state income taxes and compensation limitations, partially offset by share-based payment deductions and federal energy efficient homes tax credits[229](index=229&type=chunk)[379](index=379&type=chunk) Net Deferred Tax Assets (in thousands) | Category | December 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------------ | :------------------ | | Total deferred tax assets | $12,962 | $10,816 | | Total deferred tax liabilities | ($4,799) | ($4,630) | | **Total net deferred tax assets** | **$8,163** | **$6,186** | [8. EQUITY](index=75&type=section&id=8.%20EQUITY) This note details the company's equity structure, including common stock, treasury stock, stock repurchase program, and earnings per share - As of December 31, 2023, LGI Homes had **27,521,120 shares** of common stock issued and **23,581,648 shares** outstanding, including **3,939,472 treasury shares**[384](index=384&type=chunk) - The company has a stock repurchase program with **$211.5 million** remaining as of December 31, 2023, with no shares repurchased in 2023[385](index=385&type=chunk)[386](index=386&type=chunk) Earnings Per Share Calculation | Metric | 2023 | 2022 | 2021 | | :------------------------------------ | :----------- | :----------- | :----------- | | Net income (Numerator) | $199,227 | $326,567 | $429,645 | | Basic weighted average shares outstanding | 23,507,136 | 23,486,465 | 24,607,231 | | Diluted weighted average shares outstanding | 23,648,548 | 23,730,770 | 24,908,991 | | Basic earnings per share | $8.48 | $13.90 | $17.46 | | Diluted earnings per share | $8.42 | $13.76 | $17.25 | [9. STOCK-BASED COMPENSATION](index=76&type=section&id=9.%20STOCK-BASED%20COMPENSATION) This note describes the company's stock-based compensation plans, including Restricted Stock Units (RSUs) and the Employee Stock Purchase Plan (ESPP) - LGI Homes has non-performance-based Restricted Stock Units (RSUs) and performance-based RSUs (PSUs) under its **2013 Equity Incentive Plan**[389](index=389&type=chunk)[392](index=392&type=chunk) - In 2023, **$4.9 million** in stock-based compensation expense was recognized for RSUs, with **$7.8 million** unrecognized compensation cost remaining[391](index=391&type=chunk) - For PSUs, management estimates recipients will receive **101%**, **0%**, and **83.2%** of target for the **2023, 2022, and 2021 cycles**, respectively, with **$2.9 million** in expense recognized in 2023 and **$6.2 million** unrecognized[394](index=394&type=chunk) - The Employee Stock Purchase Plan (ESPP) allows employees to purchase stock at a **15% discount**; in 2023, **53,078 shares** were issued, generating **$5.3 million** in net proceeds, and **$0.9 million** in compensation expense was recognized[395](index=395&type=chunk) [10. FAIR VALUE DISCLOSURES](index=78&type=section&id=10.%20FAIR%20VALUE%20DISCLOSURES) This note explains the company's fair value measurements for financial instruments and nonrecurring items, using a three-level hierarchy - Fair value measurements are used for certain financial instruments and nonrecurring items like asset impairments, following a three-level hierarchy (Level 1: quoted prices, Level 2: observable inputs, Level 3: unobservable inputs)[397](index=397&type=chunk)[398](index=398&type=chunk)[399](index=399&type=chunk)[400](index=400&type=chunk) - The fair value of the **2029 Senior Notes ($300.0 million carrying value)** was **$296.4 million**, and the **2028 Senior Notes ($400.0 million carrying value)** was **$486.3 million** as of December 31, 2023, both classified as Level 2 measurements[401](index=401&type=chunk) [11. RELATED PARTY TRANSACTIONS](index=78&type=section&id=11.%20RELATED%20PARTY%20TRANSACTIONS) This note discloses related party transactions, including land purchase contracts in prior years - No related party transactions were entered into or completed during the years ended **December 31, 2023 and 2022**[402](index=402&type=chunk) - In 2021, the company completed land purchase contracts totaling **$6.5 million** from affiliates of a director and a family member of the CEO[402](index=402&type=chunk)[403](index=403&type=chunk) [12. RETIREMENT BENEFITS](index=78&type=section&id=12.%20RETREMENT%20BENEFITS) This note describes the company's 401(k) savings plan and matching contributions - Employees are eligible to participate in a 401(k) savings plan with a discretionary company match of up to **100% of the first 4% of deferrals**[404](index=404&type=chunk) - Company matching contributions were **$4.4 million** in 2023, **$4.5 million** in 2022, and **$4.6 million** in 2021[405](index=405&type=chunk) [13. COMMITMENTS AND CONTINGENCIES](index=79&type=section&id=13.%20COMMITMENTS%20AND%20CONTINGENCIES) This note outlines the company's commitments and contingencies, including legal claims, land purchase contracts, operating leases, and letters of credit - The company is subject to ordinary course claims and proceedings, including environmental indemnities, which management believes will not materially affect financial results[406](index=406&type=chunk)[407](index=407&type=chunk) - As of December 31, 2023, land purchase contracts involved **$27.0 million** in cash deposits for **15,750 lots**, with an aggregate purchase price of **$513.9 million**[254](index=254&type=chunk)[408](index=408&type=chunk) - Operating lease liabilities were **$4.9 million** as of December 31, 2023, with a weighted-average remaining life of **2.6 years**[410](index=410&type=chunk)[411](index=411&type=chunk) - Outstanding letters of credit and performance/surety bonds totaled **$357.0 million** as of December 31, 2023, for site improvements[264](index=264&type=chunk)[413](index=413&type=chunk) - Investments in unconsolidated entities (land joint venture, mortgage, and insurance) totaled **$21.5 million** as of December 31, 2023, generating **$12.8 million** in income for the year[414](index=414&type=chunk) [14. REVENUES](index=80&type=section&id=14.%20REVENUES) This note details the company's home sales revenue recognition policy and provides a breakdown of revenues by stream and geography - Revenues from home sales are recognized when control of the completed home is transferred to the customer at closing[415](index=415&type=chunk) Home Sales Revenues by Stream (in thousands) | Revenue Stream | 2023 | 2022 | 2021 | | :----------------------- | :----------- | :----------- | :----------- | | Retail home sales revenues | $2,156,237 | $1,963,896 | $2,700,866 | | Wholesale home sales revenues | $202,343 | $340,559 | $349,283 | | **Total home sales revenues** | **$2,358,580** | **$2,304,455** | **$3,050,149** | Home Sales Revenues by Geography (in thousands) | Segment | 2023 | 2022 | 2021 | | :-------- | :----------- | :----------- | :----------- | | Central | $730,688 | $1,011,844 | $1,252,782 | | Southeast | $556,808 | $455,340 | $594,742 | | Northwest | $251,171 | $253,416 | $510,497 | | West | $381,102 | $300,968 | $351,219 | | Florida | $438,811 | $282,887 | $340,909 | | **Total home sales revenues** | **$2,358,580** | **$2,304,455** | **$3,050,149** | [15. SEGMENT INFORMATION](index=81&type=section&id=15.%20SEGMENT%20INFORMATION) This note provides financial information by operating segment, including home sales revenues, net income (loss) before income taxes, and total assets - LGI Homes operates seven operating segments aggregated into five reportable segments: Central, Southeast, Northwest, West, and Florida[423](index=423&type=chunk) - The Central division is the largest, comprising approximately **31.0%** of total home sales revenues in 2023[423](index=423&type=chunk) Net Income (Loss) Before Income Taxes by Segment (in thousands) | Segment | 2023 | 2022 | 2021 | | :-------- | :----------- | :----------- | :----------- | | Central | $87,246 | $213,151 | $242,615 | | Southeast | $79,721 | $88,382 | $105,572 | | Northwest | $23,900 | $51,006 | $115,002 | | West | $29,543 | $26,643 | $50,809 | | Florida | $48,862 | $37,786 | $49,927 | | Corporate | ($7,518) | $1,148 | ($21,150) | | **Total net income before income taxes** | **$261,754** | **$418,116** | **$542,775** | Total Assets by Segment (in thousands) | Segment | December 31, 2023 | December 31, 2022 | | :-------- | :------------------ | :------------------ | | Central | $1,026,303 | $986,779 | | Southeast | $664,877 | $633,542 | | Northwest | $528,319 | $485,086 | | West | $671,558 | $599,714 | | Florida | $420,286 | $334,824 | | Corporate | $96,508 | $84,883 | | **Total assets** | **$3,407,851** | **$3,124,828** | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=83&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There have been no changes in or disagreements with accountants on accounting and financial disclosure matters - There are no changes in or disagreements with accountants on accounting and financial disclosure[429](index=429&type=chunk) [Controls and Procedures](index=83&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023, with no material changes during the year - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of **December 31, 2023**[430](index=430&type=chunk) - Management assessed and concluded that the company's internal control over financial reporting was effective as of **December 31, 2023**, based on the **2013 COSO framework**[432](index=432&type=chunk) - Ernst & Young LLP issued an unqualified attestation report on the effectiveness of the company's internal control over financial reporting[434](index=434&type=chunk)[438](index=438&type=chunk) - No material changes in internal control over financial reporting occurred during the year ended **December 31, 2023**[435](index=435&type=chunk) [Other Information](index=85&type=section&id=Item%209B.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended December 31, 2023 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended **December 31, 2023**[446](index=446&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=85&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to LGI Homes, Inc - Disclosure regarding foreign jurisdictions that prevent inspections is not applicable[447](index=447&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=86&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2024 Proxy Statement - Information for this item is incorporated by reference from the definitive Proxy Statement for the **2024 Annual Meeting of Stockholders**[450](index=450&type=chunk) [Executive Compensation](index=86&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation is incorporated by reference from the 2024 Proxy Statement - Information for this item is incorporated by reference from the definitive Proxy Statement for the **2024 Annual Meeting of Stockholders**[451](index=451&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=86&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership and related stockholder matters is incorporated by reference from the 2024 Proxy Statement - Information for this item is incorporated by reference from the definitive Proxy Statement for the **2024 Annual Meeting of Stockholders**[452](index=452&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=86&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on certain relationships, related transactions, and director independence is incorporated by reference from the 2024 Proxy Statement - Information for this item is incorporated by reference from the definitive Proxy Statement for the **2024 Annual Meeting of Stockholders**[453](index=453&type=chunk) [Principal Accounting Fees and Services](index=86&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on principal accounting fees and services is incorporated by reference from the 2024 Proxy Statement - Information for this item is incorporated by reference from the definitive Proxy Statement for the **2024 Annual Meeting of Stockholders**[454](index=454&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=87&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists consolidated financial statements, confirms the omission of schedules, and provides an index of exhibits filed or furnished - The consolidated financial statements, including the independent auditor's report, are filed as part of this report[457](index=457&type=chunk) - All financial statement schedules are omitted because the required information is either not present or included in the financial statements and related notes[458](index=458&type=chunk) - An index of exhibits, including management contracts and compensatory plans, is provided[460](index=460&type=chunk) [Form 10-K Summary](index=90&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item indicates that no Form 10-K Summary is provided - No Form 10-K Summary is included in this report[465](index=465&type=chunk) [SIGNATURES](index=90&type=section&id=SIGNATURES) This section contains the required signatures for the Form 10-K report, affirming its submission by the Chief Executive Officer, Chief Financial Officer, and Board of Directors - The report is signed by the Chief Executive Officer and Chairman of the Board, Eric Lipar, and the Chief Financial Officer and Treasurer, Charles Merdian, along with other directors, on **February 20, 2024**[469](index=469&type=chunk)[470](index=470&type=chunk)

LGI Homes, Inc. (NASDAQ:LGIH) Q3 2023 Earnings Conference Call October 31, 2023 12:30 PM ET Company Participants Joshua Fattor - Vice President of Investor Relations & Capital Markets Eric Lipar - Chairman of the Board & Chief Executive Officer Charles Merdian - Chief Financial Officer & Treasurer Conference Call Participants Andrew Azzi - JPMorgan Truman Patterson - Wolfe Ken Zener - Seaport Research Carl Reichardt - BTIG Jay McCanless - Wedbush Operator Welcome to LGI Homes Third Quarter 2023 Conference C ...