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INVESTOR PRESENTATION Fourth Quarter and Full Year 2024
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Forward-Looking Statements This presentation includes statements concerning our expectations, beliefs, plans, objectives, goals, strategies, future even ts or performance and underlying assumptions and other statements that are not historical facts. These statements are “forward -looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied by these statements. You can generally identify our forward-looking statements by the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “projection,” “should,” “will” or other similar words. The statements in this presentation that are not historical statements, including statements regarding LGI Homes, lnc.’s (“LGI Homes”) future expectations, guidance, beliefs, plans, objectives, financial conditions, assumptions or future events or performance, are forward -looking statements within the meaning of the federal securities laws. LGI Homes has based its forward-looking statements on its management’s beliefs and assumptions based on information available to its manag ement at the time the statements are made. LGI Homes cautions you that assumptions, beliefs, expectations, intentions and projections about future events may and often do vary materially from actual results. Therefore, LGI Homes cannot assure you that actual results will not differ materially from those expressed or implied by its forward -looking statements. Please read LGI Homes’ most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q filed thereafter and other filings with the Securities and Exchange Commission, including the “Risk Factors” and “Cautionary Statement about Forward-Looking Statements” sections in such filings, for a discussion of some of the factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement. LGI Homes expressly disclaims any intent, obligation or undertaking to update or revise any forward -looking statements to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. Use of Non-GAAP Financial Measures In addition to the financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”), LGI Homes uses certain non-GAAP financial measures, including Adjusted Gross Margin. Adjusted Gross Margin is a non-GAAP financial measure used by management as a supplemental measure in evaluating LGI Homes’ operating performance. LGI Homes defines Adjusted Gross Margin as Gross Margin less Capitalized Interest and adjustmen ts resulting from the application of purchase accounting included in the Cost of Sales. Other companies may not calculate Adjusted Gross Margin or other non -GAAP financial measures in the same manner as LGI Homes and therefore such information may not be directly comparable to those measures of LGI Homes’ performance. Reconciliations of Adjusted Gross Margin to Gross Margin, the GAAP financial measure that management believe to be most directly comparable, are included in the Appendix at the end of thi s presentation. CAUTIONARY STATEMENT © LGI Homes, Inc. | 2
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COMPANY HIGHLIGHTS Founded in 2003, LGI Homes is one of the nation’s fastest growing homebuilders. LGI Homes’ unique business model is focused on offering entry-level homebuyers quality homes at affordable prices through a well-established sales and marketing approach, a culture of customer service excellence, and a highly efficient construction process. FOCUS ON PERFORMANCE LGI HOMES AT A GLANCE $2.2 BILLION REVENUE 6,131 HOME CLOSINGS(1) 3.8 AVERAGE MONTHLY ABSORPTIONS 24.2% GROSS MARGIN (2) (4) 26.3% ADJUSTED GROSS MARGIN (3) (4) 36 MARKETS IN 21 STATES (5) 70,899 OWNED & CONTROLLED LOTS (5) 75,000+ HOMES CLOSED SINCE FOUNDING © LGI Homes, Inc. | 3 FULL YEAR 2024 1) Includes the bulk sale of 103 leased, single-family homes 2) Gross Margin is defined as Home Sales Revenues less Cost of Sales 3) Adjusted Gross Margin is defined as Gross Margin adjusted for Capitalized Interest and adjustments resulting from the application of purchase accounting included in Cost of Sales. See the Appendix for a reconciliation of Adjusted Gross Margin to Gross Margin 4) Calculated as a percentage of Home Sales Revenues 5) As of December 31, 2024
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THE LGI DIFFERENCE We utilize a well-established sales and marketing approach, a culture of customer service excellence, a disciplined land acquisition and development strategy and a highly efficient home construction process. Move-In Ready Inventory 100% Spec Homes – All upgrades included Attractive, outlying suburban communities that are conveniently located near retail districts and business centers Affordable Alternative to Renting Target Customer: Renters and First Time Homebuyers Marketing Excellence Unique and highly successful marketing system proven to convert renters into new homeowners Direct to consumer model limits reliance on realtors Professionally Trained Sales Representatives Information Centers are generally staffed by two to four trained sales professionals and are open 359 days per year Superior Homebuilding & Land Acquisitions Strategy Flexible land acquisition strategy of purchasing or optioning finished lots and raw land for development © LGI Homes, Inc. | 4 FOCUS ON OUR UNIQUE MODEL
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HOMEBUILDING EXCELLENCE Building 100% spec homes eliminates options and potential changes, resulting in efficient build times. Our commitment to jobsite cleanliness promotes safety and efficiency, and results in higher quality, move-in ready homes for first time buyers. Additionally, our construction process generates significant loyalty from our trade partners who value our structure and the dependability of workflow it creates. © LGI Homes, Inc. | 5 We Pay On Time, Every Time We highly value our Trade Partners and pay them by direct deposit every Friday. Even Flow Production Consistent and efficient year- round work that will increase as sales increase in each project. Zero Options and No Changes By standardizing and including the features and finishes entry-level buyers desire, we eliminate customization and can build 100% to Spec. Full-Time CM On Site A highly trained, full-time Construction Manager on each site builds according to our manual and walks each home multiple times per day to ensure consistency and quality. 4-6 Plans Per Community Four to six plans per community allows for consistency and standard components in order to maintain an average home completion time of approximately 105 to 135 days. Set Building By starting and building sets of three to four homes simultaneously on adjacent home sites, we optimize our pace of construction. Clean Job Sites A commitment to cleanliness promoting safety, efficiency, and higher quality construction. Advanced Scheduling System Real-time updates and guaranteed schedules ensure efficient subcontractor progress. FOCUS ON QUALITY AND EFFICIENCY
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Standard Processes & Procedures LGI Homes is a systems-based company with an “LGI Way” for everything we do. Our focus on systems and procedures provides employees with the tools they need to be successful and allows for our processes to be replicated in every market where we operate. Manuals Every department at LGI Homes has a comprehensive operating manual, detailing our time-proven processes for successfully accomplishing every job. Manuals create clear expectations, facilitate ongoing training and enable employees to quickly become proficient in their role. Comprehensive Training Our people receive world-class training and continuous development. Sales representatives undergo 100 days of training where they dive into our LGI Homes culture and learn the systems and processes behind conducting business the “LGI Way” A SYSTEMS-BASED COMPANY FOCUS ON CONSISTENCY © LGI Homes, Inc. | 6
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55,331 54,763 54,362 54,029 53,317 15,750 15,382 15,542 14,535 17,582 71,081 70,145 69,904 68,564 70,899 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Owned Controlled 52.8% 22.4% 24.8% Raw or Under Development Finished Lots Controlled Owned 75.2% © LGI Homes, Inc. | 7 Owned Real Estate Inventory ($ Value) 2024 Home Closings Owned Lots(2) Controlled Lots Total Lots Central 1,757 20,099 3,542 23,641 Southeast 1,635 13,870 4,434 18,304 Northwest 483 5,161 3,000 8,161 West 1,140 8,829 4,119 12,948 Florida 1,013 5,358 2,487 7,845 Total 6,028 53,317 17,582 70,899 Total Real Estate Inventory by Reportable Segment 70,899 Total Lots $3.4 Billion Note: Some numbers may not foot due to rounding 1) As of December 31, 2024 2) Of the 53,317 owned lots as of December 31, 2024, 37,432 were raw/under development lots and 15,885 were finished lots 3) Excludes real estate not owned of $37.1 million Owned Lot Inventory (Units) Total Owned and Controlled Lots Over Time Total Lot Inventory (Units) (1) (3)(1) (2)(1) (1) 53,317 Owned Lots INVENTORY MANAGEMENT FOCUS ON THE FUTURE 68.3% 22.0% 9.7% Land, Land Under Development & Finished Lots Completed Homes & Information Centers Homes in Progress 70.2% 22.2% 5.0% 2.5% Owned Raw or Under Development Owned Finished Vacant Lots Completed Homes Homes in Progress (1)
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© LGI Homes, Inc. | 8 Highly Selective Acquisition Strategy Acquisition targets are builders primarily focused on entry-level homes and land acquisitions that will add accretive value. LGI Homes’ wholesale business, LGI Living, opportunistically sells units to single-family rental investors at similar operating margins. Organic Growth Expand in existing and recently entered markets, as well as selective expansion into new markets. 17 NEW STATES 28 NEW MARKETS 6.0x MORE COMMUNITIES SINCE DECEMBER 31, 2013: 273% HOME CLOSINGS GROWTH 814% REVENUE GROWTH ACQUIRED IN 2014: ACQUIRED IN 2018: (1) 1) As of December 31, 2024 2) Growth metrics are for informational purposes only and are based on 2024 financial metrics and 2013 financial metrics pro forma for the GTIS Acquisition (2)(2) (1)(1) LGI Living Units ACQUIRED IN 2021: FOCUS ON CONTINUED GROWTH BECOME A TOP 5 BUILDER The Company plans to double the size of its business through a combination of deepening our positions in existing markets, maintaining wholesale operations in line with total closings and pursuing selected M&A opportunities where they match business objectives. Wholesale Closings as a % of Total Closings 201 466 583 850 1,515 1,233 679 552 2017 2018 2019 2020 2021 2022 2023 2024
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© LGI Homes, Inc. | 9 FOCUSING ON LGI HOMES’ ENGAGEMENT AND VALUES Focused on the Sustainability Focused on People Focused on Governance Sustainable Business Practices: Since its founding in 2003, LGI Homes has been focused on helping renters become first-time homeowners. The Company understands the value a home can create and the stability it can provide. As part of that mission, the Company seeks to protect the environment through its compliance with all applicable laws, rules and regulations. Wherever possible, the Company seeks to maintain and cultivate green belts within its communities and to provide outdoor spaces for residents to interact with each other and with local natural habitats. The Company builds its homes with the goal of making sustainability affordable for its customers. By limiting the number of floor plans, LGI Homes preserves natural resources and reduces waste. Additionally, its homes are equipped with modern energy-efficiency features like Low-E vinyl windows, programable thermostats, LED lights, EnergyStar appliances and plumbing fixtures designed to reduce water waste. Our Communities: The LGI Giving initiative was created for the Company’s employees to have a larger impact on the communities they serve through volunteerism and financial contributions. Through this initiative, the Company has contributed over $3.5 million in corporate non-profit sponsorships and donated over 40,000 employee service hours since 2016. Our Employees: LGI Homes has a proven record of identifying and attracting the best talent. As a result, it has built a diverse and inclusive team of high performers. Employees receive world-class training and continuous development that prepares them to contribute to the Company’s shared success and equips them to be rewarded for their individual achievements. At LGI Homes, people come first. Board of Directors: Corporate governance is the foundation of the organization, providing a framework for the roles, responsibilities, processes, and procedures across the Company. LGI Homes’ Board of Directors sets high standards for the Company's employees, officers and directors. The Board of Directors serves as a prudent fiduciary for stockholders and oversees the management of the Company's business. Governance highlights and practices include: ► Diversity of skills and experience ► 86% independence ► Annual election of directors ► Strong corporate controls ► Executive compensation aligned with stockholder interests
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FINANCIAL RESULTS
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RECENT FINANCIAL RESULTS Fourth Quarter 2024 ► Home Closings: 1,533, (12.8%) ► Home Sales Revenue: $557.4 Million, (8.4%) ► Average Sales Price: $363,598, +5.1% ► Ending Active Communities: 151, +29.1% ► Average Active Communities: 143.7, +27.9% ► Gross Margin: 22.9%, (50) basis points ► Adjusted Gross Margin : 25.2%, +10 basis points ► Pre-Tax Net Income: $67.1 Million, (2.1%) ► Net Income: $50.9 Million, (2.3%) ► Basic EPS: $2.16; Diluted EPS: $2.15 © LGI Homes, Inc. | 11 Full Year 2024 ► Home Closings: 6,028, (10.4%) ► Home Sales Revenue: $2.2 Billion, (6.6%) ► Average Sales Price: $365,394, +4.2% ► Ending Active Communities: 151, +29.1% ► Average Active Communities: 130.5, +25.6% ► Gross Margin: 24.2%, +120 basis points ► Adjusted Gross Margin : 26.3%, +160 basis points ► Pre-Tax Net Income: $258.9 Million, (1.1%) ► Net Income: $196.1 Million, (1.6%) ► Basic EPS: $8.33; Diluted EPS: $8.30 Note: Metrics compared to the fourth quarter and full year results as of December 31, 2023; numbers may not foot due to rounding 1) Adjusted Gross Margin is a non-GAAP measure defined as Gross Margin adjusted for Capitalized Interest and adjustments resulting from the application of purchase accounting included in Cost of Sales. See the Appendix for a reconciliation of Adjusted Gross Margin to Gross Margin (1) (1)
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STRONG OPERATING RESULTS LGI HOMES HAS GENERATED STRONG RESULTS AND INDUSTRY-LEADING ABSORPTIONS Home Closings (Units) Revenue ($ millions) Average Communities and Absorptions Average Sales Price ($ thousands) © LGI Homes, Inc. | 12 1) Absorptions per Community per Month; includes wholesale closings (1) 2,356 3,404 4,163 5,845 6,512 7,690 9,339 10,442 6,621 6,729 6,028 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 $383 $630 $838 $1,258 $1,504 $1,838 $2,368 $3,050 $2,304 $2,359 $2,203 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 32.3 47.1 57.9 73.1 80.6 95.8 111.9 104.4 91.9 103.9 130.5 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Average Absorptions 6.1 6.0 6.0 6.7 6.7 6.7 7.0 8.3 6.0 5.4 3.8 $163 $185 $201 $215 $231 $239 $254 $292 $348 $351 $365 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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LEADING MARGINS & PROFITABILITY LGI HOMES HAS CONSISTENTLY GENERATED STRONG MARGINS & PROFITABILITY Gross Margin Percentage (1) (2) Adjusted Gross Margin Percentage (2) (3) Pre-Tax Net Income Percentage (2) Net Income Percentage (2) (4) © LGI Homes, Inc. | 13 1) Gross Margin is defined as Home Sales Revenues less Cost of Sales 2) Calculated as a percentage of Home Sales Revenues 3) Adjusted Gross Margin is a non-GAAP measure defined as Gross Margin adjusted for Capitalized Interest and adjustments resulting from the application of purchase accounting included in Cost of Sales. See the Appendix for a reconciliation of Adjusted Gross Margin to Gross Margin 4) Beginning in FY 2020, results include the impact of 45L tax credits 26.8% 26.5% 26.4% 25.5% 25.3% 23.7% 25.5% 26.8% 28.1% 23.0% 24.2% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 28.2% 27.8% 27.8% 26.9% 27.0% 25.8% 27.4% 28.2% 29.2% 24.7% 26.3% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 11.2% 12.7% 13.6% 13.6% 13.2% 12.6% 15.5% 17.8% 18.1% 11.1% 11.8% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 7.4% 8.4% 9.0% 9.0% 10.3% 9.7% 13.7% 14.1% 14.2% 8.4% 8.9% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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BALANCE SHEET INVESTING IN FUTURE COMMUNITY COUNT GROWTH 1) Calculated as Notes Payable as a percentage of the sum of Notes Payable and Total Equity 2) Calculated as Notes Payable less Cash and Cash Equivalents (“Net Debt”) as a percentage of the sum of Net Debt and Total Equity December 31, December 31, December 31, December 31, December 31, ($ in thousands) 2020 2021 2022 2023 2024 ASSETS Cash and Cash Equivalents $ 35,942 $ 50,514 $ 31,998 $ 48,978 $ 53,197 Accounts Receivable 115,939 57,909 25,143 41,319 28,717 Real Estate Inventory 1,569,489 2,085,904 2,898,296 3,107,648 3,387,853 Goodwill 12,018 12,018 12,018 12,018 12,018 Other Assets 92,699 145,520 157,373 197,888 276,749 Total Assets $ 1,826,087 $ 2,351,865 $ 3,124,828 $ 3,407,851 $ 3,758,534 LIABILITIES Accounts Payable and Other Liabilities $ 148,684 $ 150,781 $ 365,415 $ 303,488 $ 240,588 Notes Payable 538,398 805,236 1,117,001 1,248,332 1,480,718 Total Liabilities 687,082 956,017 1,482,416 1,551,820 1,721,306 EQUITY Common Stock 267 269 272 275 276 Additional Paid-In Capital 270,598 291,577 306,673 321,062 337,161 Retained Earnings 934,277 1,363,922 1,690,489 1,889,716 2,085,787 Treasury Stock, at Cost (66,137) (259,920) (355,022) (355,022) (385,996) Total Equity 1,139,005 1,395,848 1,642,412 1,856,031 2,037,228 Total Liabilities and Equity $ 1,826,087 $ 2,351,865 $ 3,124,828 $ 3,407,851 $ 3,758,534 Gross Debt to Capitalization (1) 32.1% 36.6% 40.5% 40.2% 42.1% Net Debt to Capitalization (2) 30.6% 35.1% 39.8% 39.3% 41.2% $53 Million in Cash $3.4 Billion in Inventory Net Leverage of 41.2% $324 Million in Liquidity © LGI Homes, Inc. | 14 As December 31, 2024:
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APPENDIX
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HISTORICAL FOURTH QUARTER OPERATING RESULTS QUARTERS ENDED DECEMBER 31 ST Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q4 2024 Home Closings 652 946 1,139 1,844 1,852 2,515 3,408 2,526 1,448 1,758 1,533 Average Active Communities 38.0 52.0 62.3 78.3 85.3 104.3 113.7 103.7 94.3 112.3 143.7 Avg. Monthly Absorption Rate 5.7 6.1 6.1 7.8 7.2 8.0 10.0 8.1 5.1 5.2 3.6 Average Sales Price $166,288 $186,854 $207,928 $219,618 $229,568 $240,815 $263,321 $317,132 $337,198 $346,083 $363,598 Home Sales Revenues ($M) $108.4 $176.8 $236.8 $405.0 $425.2 $605.6 $897.4 $801.1 $488.3 $608.4 $557.4 Gross Margin % 27.3% 26.5% 27.2% 24.4% 24.4% 23.5% 27.1% 26.4% 20.7% 23.4% 22.9% Adjusted Gross Margin % (1) 28.9% 27.6% 28.5% 25.8% 26.2% 25.5% 28.8% 27.6% 22.1% 25.1% 25.2% SG&A % 16.7% 13.1% 12.7% 10.8% 11.3% 9.6% 8.7% 8.8% 12.3% 13.6% 14.7% Pre-Tax Net Income ($M) $11.6 $24.1 $34.9 $55.0 $56.2 $84.9 $166.5 $143.4 $46.9 $68.5 $67.1 Pre-Tax Net Income % 10.7% 13.6% 14.8% 13.6% 13.2% 14.0% 18.6% 17.9% 9.6% 11.3% 12.0% Effective Tax Rate % 34.9% 34.7% 33.6% 35.2% 24.1% 23.6% 18.1% 22.4% 27.2% 24.0% 24.2% Net Income ($M) $7.5 $15.7 $23.2 $35.6 $42.7 $64.9 $136.4 $111.3 $34.1 $52.1 $50.9 Net Income % 6.9% 8.9% 9.8% 8.8% 10.0% 10.7% 15.2% 13.9% 7.0% 8.6% 9.1% Basic Earnings per Share $0.37 $0.79 $1.09 $1.65 $1.89 $2.69 $5.45 $4.61 $1.46 $2.21 $2.16 Diluted Earnings per Share $0.34 $0.75 $1.01 $1.43 $1.72 $2.52 $5.34 $4.53 $1.45 $2.19 $2.15 1) Adjusted Gross Margin is a non-GAAP measure defined as Gross Margin adjusted for Capitalized Interest and adjustments resulting from the application of purchase accounting included in Cost of Sales © LGI Homes, Inc. | 16
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© LGI Homes, Inc. | 17 HISTORICAL ANNUAL OPERATING RESULTS YEARS ENDED DECEMBER 31 ST 1) Adjusted Gross Margin is a non-GAAP measure defined as Gross Margin adjusted for Capitalized Interest and adjustments resulting from the application of purchase accounting included in Cost of Sales FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Home Closings 2,356 3,404 4,163 5,845 6,512 7,690 9,339 10,442 6,621 6,729 6,028 Average Active Communities 32.3 47.1 57.9 73.1 80.6 95.8 111.9 104.4 91.9 103.9 130.5 Avg. Monthly Absorption Rate 6.1 6.0 6.0 6.7 6.7 6.7 7.0 8.3 6.0 5.4 3.8 Average Sales Price $162,677 $185,146 $201,374 $215,220 $231,020 $239,032 $253,553 $292,104 $348,052 $350,510 $365,394 Home Sales Revenues ($M) $383.3 $630.2 $838.3 $1,258.0 $1,504.4 $1,838.2 $2,367.9 $3,050.1 $2,304.5 $2,358.6 $2,202.6 Gross Margin % 26.8% 26.5% 26.4% 25.5% 25.3% 23.7% 25.5% 26.8% 28.1% 23.0% 24.2% Adjusted Gross Margin % (1) 28.2% 27.8% 27.8% 26.9% 27.0% 25.8% 27.4% 28.2% 29.2% 24.7% 26.3% SG&A % 15.8% 13.8% 13.1% 12.0% 12.0% 11.4% 10.1% 8.9% 11.1% 13.1% 14.6% Pre-Tax Net Income ($M) $43.1 $80.3 $113.7 $171.4 $199.1 $231.8 $367.8 $542.8 $418.1 $261.8 $258.9 Pre-Tax Net Income % 11.2% 12.7% 13.6% 13.6% 13.2% 12.6% 15.5% 17.8% 18.1% 11.1% 11.8% Effective Tax Rate % 34.5% 34.2% 34.0% 33.9% 22.0% 23.0% 11.9% 20.8% 21.9% 23.9% 24.3% Net Income ($M) $28.2 $52.8 $75.0 $113.3 $155.3 $178.6 $323.9 $429.6 $326.6 $199.2 $196.1 Net Income % 7.4% 8.4% 9.0% 9.0% 10.3% 9.7% 13.7% 14.1% 14.2% 8.4% 8.9% Basic Earnings per Share $1.37 $2.65 $3.61 $5.24 $6.89 $7.70 $12.89 $17.46 $13.90 $8.48 $8.33 Diluted Earnings per Share $1.33 $2.44 $3.41 $4.73 $6.24 $7.02 $12.76 $17.25 $13.76 $8.42 $8.30
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($ in thousands) Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q4 2024 Home Sales Revenues $108,420 $176,764 $236,830 $404,975 $425,160 $605,649 $897,398 $801,076 $488,262 $608,414 $557,396 Cost of Home Sales $78,820 $129,874 $172,502 $306,298 $321,602 $463,435 $654,069 $589,359 $387,227 $465,785 $429,885 Gross Margin $29,600 $46,890 $64,328 $98,677 $103,558 $142,214 $243,329 $211,717 $101,035 $142,629 $127,511 Capitalized Interest Charged to Cost of Sales $557 $1,681 $3,249 $5,852 $7,226 $11,336 $13,603 $7,828 $5,411 $8,893 $11,884 Purchase Accounting Adjustment (1) $1,172 $272 $31 $20 $561 $1,067 $1,601 $1,754 $1,399 $981 $900 Adjusted Gross Margin (Non-GAAP) $31,329 $48,843 $67,608 $104,549 $111,345 $154,617 $258,533 $221,299 $107,845 $152,503 $140,295 Gross Margin % (2) 27.3% 26.5% 27.2% 24.4% 24.4% 23.5% 27.1% 26.4% 20.7% 23.4% 22.9% Adjusted Gross Margin % (2) 28.9% 27.6% 28.5% 25.8% 26.2% 25.5% 28.8% 27.6% 22.1% 25.1% 25.2% 1) Adjustments result from the application of purchase accounting related to prior acquisitions and represent the amount of the fair value step-up adjustments for real estate inventory included in Cost of Sales 2) Calculated as a percentage of Home Sales Revenues © LGI Homes, Inc. | 18 RECONCILIATION OF ADJUSTED GROSS MARGIN (NON-GAAP) QUARTERS ENDED DECEMBER 31 ST
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1) Adjustments result from the application of purchase accounting related to prior acquisitions and represent the amount of the fair value step-up adjustments for real estate inventory included in Cost of Sales 2) Calculated as a percentage of Home Sales Revenues © LGI Homes, Inc. | 19 RECONCILIATION OF ADJUSTED GROSS MARGIN (NON-GAAP) YEARS ENDED DECEMBER 31 ST ($ in thousands) FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Home Sales Revenues $383,268 $630,236 $838,320 $1,257,960 $1,504,400 $1,838,154 $2,367,929 $3,050,149 $2,304,455 $2,358,580 $2,202,598 Cost of Home Sales $280,481 $463,304 $616,707 $937,540 $1,124,484 $1,401,675 $1,764,832 $2,232,115 $1,657,855 $1,816,393 $1,669,310 Gross Margin $102,787 $166,932 $221,613 $320,420 $379,916 $436,479 $603,097 $818,034 $646,600 $542,187 $533,288 Capitalized Interest Charged to Cost of Sales $1,704 $6,057 $10,680 $17,400 $24,311 $35,230 $40,381 $37,546 $20,276 $33,368 $42,071 Purchase Accounting Adjustment (1) $3,620 $2,131 $485 $246 $1,408 $3,324 $4,872 $4,964 $6,869 $6,492 $4,034 Adjusted Gross Margin (Non-GAAP) $108,111 $175,120 $232,778 $338,066 $405,635 $475,033 $648,350 $860,544 $673,745 $582,047 $579,393 Gross Margin % (2) 26.8% 26.5% 26.4% 25.5% 25.3% 23.7% 25.5% 26.8% 28.1% 23.0% 24.2% Adjusted Gross Margin % (2) 28.2% 27.8% 27.8% 26.9% 27.0% 25.8% 27.4% 28.2% 29.2% 24.7% 26.3%
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LGI Homes, Inc. Investor Relations 1450 Lake Robbins Drive, Suite 430 The Woodlands, TX 77380 (281) 210-2586 investorrelations@lgihomes.com