Lgi Homes, Inc. · NASDAQ:LGIH
Lgi Homes — Investor Presentation (May 2021)
23 slides from Lgi Homes's investor presentation, May 2021
Slide 1: Investor Presentation May 2021
INVESTOR PRESENTATION May 2021
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Forward-Looking Statements This presentation includes statements concerning our expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not historical facts. These statements are “forward-
Slide 3: LGI Homes at a Glance
FOCUS ON PERFORMANCE LGI HOMES AT A GLANCE $2.6 BILLION REVENUE 10,065 HOME CLOSINGS LAST 12 MONTHS (4) 7.5 AVERAGE MONTHLY ABSORPTIONS 26.2% GROSS MARGIN (1) (2) COMPANY HIGHLIGHTS 28.0% ADJUSTED GROSS MARGIN (2) (3) 36.6% RETURN ON EQUITY (4) Founded in 2003, LGI Homes is one of the nation’s faste
Slide 4: Focus on Growth: Building Our Business
FOCUS ON GROWTH Northwest BUILDING OUR BUSINESS 2020 (1) West 1,000 11% LGI Homes’ unique operating model has driven Home Closings: 9,339 1,043 Central rapid growth. Between 2013 and 2020(1), the Revenue: $2.4 billion 11% 3,654 Company grew home closings 478% and revenue States: 18 39% 883% (a compo
Slide 5: The LGI Difference
Affordable Alternative to Renting Target Customer: Renters and First Time Homebuyers Move-In Ready Inventory 100% Spec Homes – All upgrades included Attractive, outlying suburban communities that are conveniently located near retail districts and business centers Professionally Trained Sales Represe
Slide 6: A Systems-Based Company
Standard Processes & Procedures Manuals Comprehensive Training Manuals are the backbone to our systematic LGI Homes is a systems-based company with an We are focused on providing our people with world- approach. Most roles at LGI Homes have a “LGI Way” for everything we do. Our focus on class traini
Slide 7: Focus on People: Hire the Best
FOCUS ON PEOPLE Hire the Best Commitment to Recruiting, Training and Development ► We directly invest in our new employees through an intensive 100- day introductory training program that includes in-person training at LGI Homes has a proven record of identifying and our headquarters personally led
Slide 8: Inventory Management
FOCUS ON THE FUTURE INVENTORY MANAGEMENT Total Lot Inventory (Units) Real Estate Inventory ($ Value) Owned Vertical Construction 57% 9.5% We target 4 to 6 months of expected home closings in 39.0% vertical construction at any one time. 42.8% 26.4% $1.6 Billion 67,286 Lots 38,502 Owned Lots 64.1% Raw
Slide 9: Homebuilding Excellence
Full-Time CM On Site 4-6 Plans Per Community A highly trained, full-time 4-6 plans per community allows Construction Manager on each for consistency and standard site builds according to our components in order to maintain manual and walks each home an average home completion time multiple times per
Slide 10: Become a Top 5 Builder
SINCE OUR IPO IN 2013: Organic Growth 14 25 4.4x Expand in existing and NEW NEW MORE recently entered markets, (1) (1) (1) STATES MARKETS COMMUNITIES as well as selective expansion into new markets. 478% 883% HOME CLOSINGS REVENUE (2) (2) GROWTH GROWTH % of Total Closings 3.4% 7.2% 7.6% 9.1% 9.3% 93
Slide 11: Building Better Communities
FOCUS ON HELPING 20,000 BUILDING BETTER COMMUNITIES The LGI Giving initiative was created for LGI Homes employees to have a larger impact on the communities they serve through volunteerism and financial contributions. $1,500,000 Through this initiative, the Company has contributed over $1,500,000 in
Slide 12: Financial Results
Financial Results
Slide 13: First Quarter 2021 Results
First Quarter 2021 Results ► Home Closings: 2,561, +39.6% ► Home Sales Revenues: $706.0 Million, +55.2% ► Average Sales Price: $275,655, +11.2% ► Active Communities: 110 ending and 106.3 average during the quarter ► Gross Margin: 26.9%, +350 basis points ► Adjusted Gross Margin (1): 28.5%, +300 basi
Slide 14: Strong Operating Results
STRONG OPERATING RESULTS LGI HOMES HAS GENERATED STRONG RESULTS THROUGHOUT ITS HISTORY Home Closings (Units) Revenue ($ millions) 12,000 $3,000 $2,619 10,065 10,000 9,339 $2,500 $2,368 7,690 $1,838 8,000 6,512 $2,000 5,845 $1,504 6,000 $1,500 $1,258 4,163 4,000 3,404 $1,000 $838 2,356 $630 $383 2,00
Slide 15: Leading Margins & Profitability
LEADING MARGINS & PROFITABILITY ALONG WITH RAPID GROWTH, LGI HOMES HAS CONSISTENTLY GENERATED INDUSTRY-LEADING MARGINS & PROFITABILITY Gross Margin Percentage (1) (2) Adjusted Gross Margin Percentage (2) (3) 30.0% 30.0% 28.2% 27.8% 27.8% 27.0% 27.4% 28.0% 26.8% 26.5% 26.4% 26.2% 26.9% 25.8% 25.5% 25
Slide 16: Superior Returns on Capital
SUPERIOR RETURNS ON CAPITAL LGI HOMES’ FOCUS ON PROFITABILITY AND CONSERVATIVE CAPITAL STRUCTURE HAS DRIVEN STRONG RETURNS FOR INVESTORS Return on Equity (1) (2) Return on Total Capital (2) (4) 40.0% 25.0% 23.5% 36.6% 35.0% (3) 32.6% 20.2% 20.0% 30.0% 26.8% 27.1% 24.6% 24.9% 25.0% 23.8% 15.0% 13.7%
Slide 17: Condensed Balance Sheet
CONDENSED BALANCE SHEET 2020 AND Q1 2021 PERFORMANCE PERMANENTLY STRENGTHENED THE CAPITAL STRUCTURE December 31, December 31, December 31, December 31, March 31, ($ in thousands) 2017 2018 2019 2020 2021 ASSETS Cash and Cash Equivalents $ 67,571 $ 46,624 $ 38,345 $ 35,942 $ 48,157 Accounts Receivabl
Slide 18: Appendix
Appendix
Slide 19: Historical First Quarter Operating Results
HISTORICAL FIRST QUARTER OPERATING RESULTS LGI HOMES HAS GENERATED STRONG FIRST QUARTER RESULTS THROUGHOUT ITS HISTORY Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Home Closings 485 671 844 761 1,244 1,228 1,835 2,561 Average Active Communities 27.3 42.7 55.0 66.3 77.0 84.3 108.7
Slide 20: Historical Annual Operating Results
HISTORICAL ANNUAL OPERATING RESULTS DEMONSTRATED HISTORY OF RECORD-BREAKING ANNUAL PERFORMANCE YEAR AFTER YEAR FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 LTM (1) Home Closings 2,356 3,404 4,163 5,845 6,512 7,690 9,339 10,065 Average Active Communities 32.3 47.1 57.9 73.1 80.6 95.8 111.9
Slide 21: Reconciliation of Adjusted Gross Margin (Non-GAAP)
RECONCILIATION OF ADJUSTED GROSS MARGIN (NON-GAAP) FOR THE QUARTERS ENDED MARCH 31 ST ($ in thousands) Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Home Sales Revenues $75,919 $120,690 $162,463 $162,911 $279,024 $287,594 $454,727 $705,953 Cost of Home Sales $56,389 $89,228 $121,09
Slide 22: Reconciliation of Adjusted Gross Margin (Non-GAAP)
RECONCILIATION OF ADJUSTED GROSS MARGIN (NON-GAAP) FOR THE 12 MONTHS ENDED DECEMBER 31 ST & LAST TWELVE MONTHS ENDED MARCH 31, 2021 ($ in thousands) FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 LTM (1) Home Sales Revenues $383,268 $630,236 $838,320 $1,257,959 $1,504,400 $1,838,154 $2,367,
Slide 23: LGI Homes, Inc. Investor Relations
LGI Homes, Inc. Investor Relations 1450 Lake Robbins Drive, Suite 430 The Woodlands, TX 77380 (281) 210-2619 [email protected]