LGI Homes shares drop 1.1%

By Bobby Samwell • Wednesday, February 21 11:49 • Permanent Link

LGI Homes, Inc. a residential homebuilder, has released its 10-K report today. The company operates in various states across the US, offering entry-level, active adult, and luxury series homes under the LGI Homes and Terrata Homes brand names. Additionally, the company engages in the wholesale business, building and selling homes to institutions looking to acquire single-family rental properties. As of December 31, 2023, LGI Homes, Inc. had 117 active communities and 71,081 total owned and controlled lots.

Key financial results for the year ended December 31, 2023, compared to the year ended December 31, 2022, include: Home sales revenues increased by 2.3% to $2.4 billion. Homes closed increased by 1.6% to 6,729 homes. Average sales price per home closed increased by 0.7% to $350,510. Gross margin as a percentage of home sales revenues decreased to 23.0% from 28.1%. Net income before income taxes decreased by 37.4% to $261.8 million. Net income decreased by 39.0% to $199.2 million. EBITDA as a percentage of home sales revenues decreased to 12.6% from 19.1%. Adjusted EBITDA as a percentage of home sales revenues decreased to 11.7% from 18.2%. Active communities at the end of 2023 increased to 117 from 99. Total owned and controlled lots decreased by 1.1% to 71,081 lots.

The company's financial performance was impacted by various factors, including changes in the number of homes closed, average sales prices, and gross margin percentages. Notably, the company experienced a decrease in net income and EBITDA as a percentage of home sales revenues, indicating a challenging year for the business.

In terms of regional performance, home sales revenues in the Central reportable segment decreased by 27.8%, while the Southeast segment saw an increase of 22.3%. The Northwest segment experienced a slight decrease of 0.9%, the West segment saw a significant increase of 26.6%, and the Florida segment had a substantial increase of 55.1%.

Overall, LGI Homes, Inc. faced a mixed performance across its segments, with some areas experiencing growth while others saw declines. The company also faced challenges in maintaining gross margins and controlling selling expenses, which impacted its overall financial results.

Today the company's shares have moved -1.1% to a price of $115.05. For more information, read the company's full 10-K submission here.

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