HOUSTON, April 04, 2025 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ:LGIH) is excited to announce the grand opening of two new communities in the Houston area: Canterra Creek in Iowa Colony and Trails at Cochran Ranch in Waller. Both communities offer a selection of newly constructed homes with built-in upgrades, providing an affordable and convenient path to homeownership in desirable locations. Canterra Creek – Iowa Colony, TX Located just 15 miles from Pearland, Canterra Creek offers homebuyers a choice o ...

Core Insights - LGI Homes, Inc. has launched its first Terrata Homes branded community, Springbrook Reserve, in the Nashville market, offering upgraded homes designed for enhanced living [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 [7]. - The company is recognized for its quality construction and exceptional customer service, earning accolades such as being named to Newsweek's list of the World's Most Trustworthy Companies [7]. Community Features - Springbrook Reserve features a variety of amenities including a private neighborhood park, walking trails, picnic areas, and a community fire pit, making it an ideal location for families [2][5]. - The homes in Springbrook Reserve range from approximately 1,700 to over 2,700 square feet, with prices starting in the high-$400s [6]. Home Design and Specifications - The homes at Springbrook Reserve include open-concept layouts with up to five bedrooms, large living areas, and luxurious upgrades such as stainless steel appliances and granite countertops [4][6]. - Each home is designed with attention to detail, featuring large covered outdoor living spaces, vaulted ceilings, and professional landscaping [3][4]. Future Expansion - LGI Homes plans to continue expanding the Terrata Homes brand in the Nashville area with additional communities expected to open soon [5].

ELIZABETH, Colo., March 27, 2025 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ:LGIH) is thrilled to announce its return to the picturesque neighborhood of Spring Valley Ranch under its move-up brand, Terrata Homes. This exciting development brings a fresh selection of floor plans to this beautiful community. "We are extremely excited for our newest, luxury, high end community in Denver. Our spacious Terrata homes are located on the beautiful Spring Valley Golf course and still close enough to Denver and the m ...

Core Insights - LGI Homes, Inc. has announced the grand opening of Middlefield Towns, a new townhome community in Graham/Burlington, North Carolina, emphasizing modern homeownership options that are both affordable and convenient [1][5] Location and Accessibility - Middlefield Towns is strategically located between Raleigh/Durham and Greensboro, just a few miles off I-40, providing easy access to major hubs such as RDU, Duke, and Greensboro [2] - The community is situated thirty minutes from Greensboro and less than an hour from Winston-Salem, offering residents access to charming downtowns, local workplaces, schools, and a variety of shopping and dining options [2] Community Features - The community offers a range of open-concept townhome floor plans, including three bedrooms and two-and-a-half bathrooms, with ample storage [3] - Each home includes LGI Homes' CompleteHome™ package, featuring energy-efficient Whirlpool appliances, luxury vinyl-plank flooring, granite countertops, designer cabinetry with crown molding, and Wi-Fi-enabled garage doors [3] Living Experience - The main living area is designed with a white kitchen featuring granite islands and an open dining and living area, ideal for hosting gatherings [4] - Middlefield Towns also provides access to nearby recreational parks and family-friendly attractions, enhancing the living experience for residents [5] Company Overview - LGI Homes, headquartered in The Woodlands, Texas, is recognized as a pioneer in the homebuilding industry, operating in 36 markets across 21 states [6] - Since its founding in 2003, LGI Homes has closed over 75,000 homes and has consistently delivered profitable financial results, earning recognition for quality construction and customer service [6]

The Mercer Plan by Terrata Homes at Copper Heights The Mercer Plan by Terrata Homes at Copper Heights features four bedrooms, two-and-a-half bathrooms, and a spacious family room. PORTLAND, Ore., March 10, 2025 (GLOBE NEWSWIRE) -- LGI Homes (NASDAQ: LGIH) is proud to announce the grand opening of two exciting new communities near Portland, Oregon, expanding its presence in the region. These two communities, Dove Landing and Copper Heights, are designed to cater to a variety of homebuyers, with distinc ...

The Blanco Plan by LGI Homes at Timberlake Preserve The Blanco Plan by LGI Homes at Timberlake Preserve features three bedrooms, two bathrooms, and a spacious family room. YOUNGSVILLE, N.C., March 10, 2025 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ: LGIH) is excited to announce the grand opening of a new section at Timberlake Preserve, a beautiful community located just northeast of Raleigh in Youngsville, North Carolina. This expanded section offers a selection of upgraded new homes, providing homebu ...

Core Insights - LGI Homes, Inc. has launched its luxury brand, Terrata Homes, in a new master-planned community called Stoneridge Hills located in Rock Hill, South Carolina, providing modern homes with easy access to Charlotte, North Carolina [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 is recognized for its innovative approach to homebuilding and has consistently delivered profitable financial results, earning accolades such as being named one of Newsweek's World's Most Trustworthy Companies [6] Community Features - Stoneridge Hills offers a variety of amenities including pickleball and bocce ball courts, cornhole stations, a children's playground, a dog park, and a private neighborhood park with a picnic area [3] - The community is strategically located near exceptional schools, dining, shopping, and entertainment options [3] Home Offerings - Terrata Homes at Stoneridge Hills features three- and four-bedroom homes with modern designs and upgrades, starting in the low-$500s [4][5] - Homes include spacious open-concept floor plans, stainless steel kitchen appliances, quartz countertops, energy-efficient features, and flexible spaces such as game rooms and covered outdoor living areas [4]

THE WOODLANDS, Texas, March 05, 2025 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ: LGIH) today announced it closed 351 homes in February 2025. As of February 28, 2025, the Company had 150 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 com ...

Workforce and Employee Relations - The company employed 1,170 people as of December 31, 2024, with 689 in on-site sales and support and 383 in acquisition, development, purchasing, and construction [55]. - The company has not experienced any strikes or work stoppages, indicating good relations with employees and subcontractors [55]. - The company has implemented a comprehensive training program for new employees, ensuring they are well-prepared for their roles [57]. - The company utilizes subcontractors for construction, maintaining good relations with them to ensure efficient homebuilding processes [56]. Financial Performance and Revenue - Home sales revenues for 2024 were $2,202,598, a decrease of 6.6% compared to $2,358,580 in 2023 [307]. - Net income for 2024 was $196,071, a slight decrease of 1.2% from $199,227 in 2023 [307]. - Operating income decreased to $212,146, down 9.0% from $233,255 in 2023 [307]. - Basic earnings per share decreased to $8.33, down 1.8% from $8.48 in 2023 [307]. - Total assets increased to $3,758,534, up 10.3% from $3,407,851 in 2023 [304]. - Total liabilities rose to $1,721,306, an increase of 10.9% from $1,551,820 in 2023 [304]. - Total equity increased to $2,037,228, up 9.8% from $1,856,031 in 2023 [304]. - Cash and cash equivalents increased to $53,197, up 8.3% from $48,978 in 2023 [312]. - Net cash used in operating activities was $(143,739), compared to $(56,968) in 2023 [312]. Market Conditions and Competition - The homebuilding industry is highly competitive, with the company competing against numerous national, regional, and local homebuilders for homebuyers and resources [53]. - The homebuilding industry is seasonal, leading to fluctuations in quarterly operating results, with higher revenues typically in the second, third, and fourth quarters [140]. - Increased competition may hinder the company's ability to acquire attractive land parcels, potentially increasing costs and reducing market share [110]. - The mortgage banking business is competitive, with significant risks from competitors who may have fewer regulations and better access to capital, potentially affecting the joint venture's ability to compete effectively [89]. Cost Management and Economic Pressures - The company has successfully increased home sales prices to absorb rising costs associated with labor, commodities, and lumber, indicating effective cost management strategies [48]. - The company anticipates ongoing cost pressures from inflation similar to those experienced in recent years, which may impact future operations [48]. - Inflation has raised costs for land, raw materials, and labor, which may decrease profit margins if sales prices cannot be raised accordingly [92]. - Labor and raw material shortages, along with price fluctuations, could materially affect home construction costs and timelines [77]. Risks and Regulatory Environment - The company is subject to various environmental regulations that may result in delays and increased costs, particularly in environmentally sensitive areas [51]. - The company faces significant risks related to the acquisition of finished lots and land parcels, which could impact the number of homes built and sold [76]. - The company is exposed to risks from inventory carrying costs, which can reduce margins or lead to losses in poorly performing markets [76]. - The company may face challenges in obtaining suitable bonding for housing project developments, which could impact liquidity and operations [86]. - The company is subject to various operational, industry, and strategic risks that could hinder growth and profitability [76]. - The company may face significant liabilities and penalties if it acquires a company that has violated privacy and data security laws [175]. Community Engagement and Social Responsibility - The company has contributed over $3.5 million in corporate sponsorships and over 40,000 employee service hours to local communities since 2016, reflecting its commitment to social responsibility [61]. - Poor relations with community residents could negatively impact sales and overall revenue [87]. Inventory and Construction Management - The company has 2,512 completed homes and 1,358 homes in progress in inventory as of December 31, 2024 [76]. - The company has experienced a shift towards acquiring more undeveloped land, resulting in longer lead times before construction can begin [75]. - The company capitalizes land, development, and other project costs to real estate inventory, with costs allocated to individual homes based on specific identification or pro rata methods [321]. Debt and Financing - The company has a $1.205 billion revolving credit facility, with $401.9 million borrowed as of December 31, 2024, and additional borrowing capacity of $270.5 million [152]. - The company may face challenges in obtaining sufficient capital for land acquisition and development, which could delay projects and increase costs [144]. - The company is dependent on distributions from subsidiaries to service its debt and pay dividends, with no independent means of generating revenue [162]. - The company may face significant risks if unable to refinance its indebtedness on acceptable terms, potentially leading to asset disposals [156]. Environmental and Regulatory Compliance - The company is subject to various environmental regulations, which could lead to significant costs related to compliance, cleanup, and potential liabilities for hazardous materials [131][133]. - The SEC has adopted new climate-related disclosure rules, which may impose additional compliance costs and affect the company's reputation and financial position [138]. - Changes in climate-related laws could lead to increased construction costs and project delays, affecting profitability [128]. Economic and Market Risks - Adverse economic conditions, including rising interest rates and declining consumer confidence, could materially affect home sales and financial performance [105]. - Mortgage interest rates have significantly increased since January 2022, negatively impacting the housing market and reducing demand for new homes [93]. - A prolonged economic downturn in key markets could materially affect the company's business and financial condition [112]. - Natural disasters and severe weather conditions may increase costs and reduce consumer demand for housing, impacting sales and profitability [122].

Financial Data and Key Metrics Changes - Revenue in Q4 2024 was $557.4 million, a decrease of 8.4% year-over-year, driven by a 12.8% decrease in closings of 1,533 homes, partially offset by a 5.1% increase in average selling price to $363,598 [21][22] - Full-year revenue was $2.2 billion, a decrease of 6.6%, driven by a 10.4% decrease in closings, offset by a 4.2% increase in average sales price to $365,394 [26] - Full-year gross margin was 24.2%, and adjusted gross margin was 26.3%, representing year-over-year increases of 120 basis points and 160 basis points respectively [27] - Pretax net income for Q4 was $67.1 million, or 12% of revenue, compared to 11.3% in the same period last year [25] Business Line Data and Key Metrics Changes - The company delivered 1,636 homes in Q4, including a bulk sale of 103 homes, resulting in total closings of 6,131 for the year [12][13] - Fourth-quarter closings, excluding the bulk sale, were 1,533 homes, leading to full-year closings of 6,028 homes [13] - The wholesale business closed 173 homes in Q4, representing 11.3% of total closings, down from 17% in the same period last year [22] Market Data and Key Metrics Changes - The top five markets for the company were Charlotte and Las Vegas, with 7.4% closings per community per month, followed by Washington DC at 6.7%, Raleigh at 6.3%, and Fort Pierce at 5.5% [14] - The cancellation rate for Q4 was 28%, compared to 37.8% during the same period last year, indicating improved demand stability [28] Company Strategy and Development Direction - The company plans to close between 6,200 and 7,000 homes in 2025, with a focus on maintaining profitability through operational discipline and strategic investments [36][41] - The company is investing around $20,000 per home on average to offer incentives to customers, including closing costs and interest rate buy-downs [38][39] - The company aims to continue expanding its community count, having opened 80 new communities in 2024, representing a 29% year-over-year increase [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the increase in mortgage rates and economic uncertainties have created challenges, but they remain optimistic about long-term housing demand due to resilient employment and demographic trends [18][35] - The outlook for 2025 anticipates continued challenges in affordability, but management believes that strategic investments and operational efficiencies will support growth [41] Other Important Information - The company ended the year with nearly $1.5 billion of debt outstanding and a debt-to-capital ratio of 42.1% [33] - The company repurchased 307,867 shares of common stock for $30.8 million during the year [34] Q&A Session Summary Question: Can you elaborate on the gross margins and the factors affecting them? - Management expects gross margins to remain similar year-over-year, despite anticipated cost increases, and plans to offset these through pricing and customer incentives [47][48] Question: What has changed regarding the sales pace for 2025? - Management noted a slower start to 2025 compared to 2024, influenced by higher mortgage rates and the integration of new community openings [50][52] Question: Can you provide details on units under construction? - The company had over 4,000 total units in inventory, with approximately 2,500 completed and about 1,360 homes in progress [57] Question: How are incentives impacting demand? - Management indicated that while demand remains, affordability challenges are significant, necessitating increased marketing spend to attract potential buyers [81][82] Question: What aspects of the guidance are considered conservative? - Management highlighted that the average selling price (ASP) guidance is conservative, as they expect to raise prices to offset cost inflation [70][71]