lgih-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2024


☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to .

Commission file number 001-36126

LGI HOMES, INC.

(Exact name of registrant as specified in its charter)

Delaware

46-3088013

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

1450 Lake Robbins Drive,

Suite 430,

The Woodlands,

Texas

77380

(Address of principal executive offices)

(Zip code)

(281)

362-8998

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

LGIH

NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 26, 2024, there were 23,567,441 shares of the registrant’s common stock, par value $0.01 per share, outstanding.


		Page
PART I - FINANCIAL INFORMATION
Item 1.	LGI Homes, Inc. Consolidated Financial Statements (Unaudited)
	Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023	4
	Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023	5
	Consolidated Statements of Equity for the three months ended March 31, 2024 and 2023	6
	Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023	7
	Notes to the Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	31

PART II - OTHER INFORMATION
Item 1A.	Risk Factors	32
Item 2 .	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 5.	Other Information	32
Item 6.	Exhibits	33

SIGNATURES		34


	March 31,		December 31,
	2024		2023
ASSETS
Cash and cash equivalents	$	48,996	$	48,978
Accounts receivable	27,151		41,319
Real estate inventory	3,229,100		3,107,648
Pre-acquisition costs and deposits	31,764		30,354
Property and equipment, net	49,775		45,522
Other assets	116,813		113,849
Deferred tax assets, net	7,269		8,163
Goodwill	12,018		12,018
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

COMMITMENTS AND CONTINGENCIES
EQUITY
Common stock, par value $0.01, 250,000,000 shares authorized, 27,596,140 shares issued and 23,567,441 shares outstanding as of March 31, 2024 and 27,521,120 shares issued and 23,581,648 shares outstanding as of December 31, 2023	276		275
Additional paid-in capital	327,182		321,062
Retained earnings	1,906,769		1,889,716
Treasury stock, at cost, 4,028,699 shares as of March 31, 2024 and 3,939,472 shares as of December 31, 2023	(365,024)		(355,022)
Total equity	1,869,203		1,856,031
Total liabilities and equity	$	3,522,886	$	3,407,851


	Three Months Ended March 31,
		2024		2023
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

Other income, net		(4,361)		(6,297)
Net income before income taxes		23,094		32,348
Income tax provision		6,041		5,386
Net income		$	17,053	$	26,962
Earnings per share:
Basic		$	0.72	$	1.15
Diluted		$	0.72	$	1.14

Weighted average shares outstanding:
Basic		23,578,576		23,381,294
Diluted		23,675,353		23,629,779


	Common Stock			Additional Paid-In Capital		Retained Earnings		Treasury Stock		Total Equity
	Shares	Amount
BALANCE—December 31, 2023	27,521,120	$	275	$	321,062	$	1,889,716	$	(355,022)	$	1,856,031
Net income	—	—		—		17,053		—		17,053
Restricted stock units granted for accrued annual bonuses	—	—		786		—		—		786
Stock repurchase	—	—		—		—		(10,002)		(10,002)
Compensation expense for equity awards	—	—		3,829		—		—		3,829
Stock issued under employee incentive plans	75,020	1		1,505		—		—		1,506
BALANCE— March 31, 2024	27,596,140	$	276	$	327,182	$	1,906,769	$	(365,024)	$	1,869,203


	March 31, 2024		December 31, 2023
Notes payable under the Credit Agreement ($1.205 billion revolving credit facility at March 31, 2024) maturing in part on April 28, 2025 and in part on April 28, 2028; interest paid monthly at SOFR plus 1.85%	$	703,055	$	569,633
4.000% Senior Notes due July 15, 2029; interest paid semi-annually at 4.000%	300,000		300,000
8.750% Senior Notes due December 15, 2028; interest paid semi-annually at 8.750%	400,000		400,000
Net debt issuance costs	(19,835)		(21,301)
Total notes payable	$	1,383,220	$	1,248,332


Period Granted	Performance Period	Target PSUs Outstanding at December 31, 2023	Target PSUs Granted	Target PSUs Forfeited	Target PSUs Vested	Target PSUs Outstanding at March 31, 2024	Weighted Average Grant Date Fair Value
2021	2021 - 2023	43,159	—	—	(43,159)	—	$	141.00
2022	2022 - 2024	63,304	—	—	—	63,304	$	118.80
2023	2023 - 2025	72,443	—	—	—	72,443	$	104.36
2024	2024 - 2026	—	70,947	—	—	70,947	$	111.94
Total		178,906	70,947	—	(43,159)	206,694


		March 31, 2024				December 31, 2023
	Fair Value Hierarchy	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
2029 Senior Notes (1)	Level 2	$	300,000	$	296,908	$	300,000	$	296,381
2028 Senior Notes (1)	Level 2	$	400,000	$	442,706	$	400,000	$	486,306


	March 31, 2024		December 31, 2023
Land deposits and option payments (1)	$	28,368	$	26,955
Commitments under the land purchase contracts if the purchases are consummated (1)	$	537,736	$	513,941
Lots under land purchase contracts (1)	15,382		15,750


Year Ending December 31,	Operating leases
2024	1,260
2025	1,434
2026	1,262
2027	1,085
2028	640
Thereafter	35
Total	5,716
Lease amount representing interest	(639)
Present value of lease liabilities	$	5,077


	March 31, 2024		December 31, 2023
Assets:
Central	$	1,069,887	$	1,026,303
Southeast	660,238		664,877
Northwest	544,424		528,319
West	695,540		671,558
Florida	461,468		420,286
Corporate (1)	91,329		96,508
Total assets	$	3,522,886	$	3,407,851


	March 31,		December 31,
	2024		2023
Land, land under development and finished lots	$	2,145,846	$	2,099,133
Information centers	52,164		47,936
Homes in progress	419,997		313,124
Completed homes	533,284		542,996
Total owned inventory	3,151,291		3,003,189
Real estate not owned	77,809		104,459
Total real estate inventory	$	3,229,100	$	3,107,648


	March 31,		December 31,
	2024		2023
Land banking financing arrangements	$	77,809	$	104,459
Real estate inventory development and construction payable	64,443		71,193
Accrued compensation, bonuses and benefits	8,737		22,550
Taxes payable	7,661		14,694
Warranty reserve	14,000		13,600
Accrued interest	20,105		13,522
Inventory related obligations	11,830		11,924
Lease liability	5,077		4,947
Contract deposits	4,244		2,909
Other	10,401		12,074
Total accrued expenses and other liabilities	$	224,307	$	271,872


	Three Months Ended March 31,
		2024		2023
Warranty reserves, beginning of period		$	13,600	$	10,750
Warranty provision		1,790		1,852
Warranty expenditures		(1,390)		(1,252)
Warranty reserves, end of period		$	14,000	$	11,350

SEC Form 10-Q filed by LGI Homes Inc.