LGI Homes, Inc. Reports First Quarter 2016 Results
THE WOODLANDS, Texas, May 10, 2016 -- LGI Homes, Inc. (Nasdaq:LGIH) on Tuesday reported a profit of $11.7 million, or $0.57 per share, for the first quarter ended March 31. That compares with a gain of $7.7 million for the comparable quarter last year, a 51.9% increase.
Closings increased 25.8% to 844 from 671 during the quarter, while active selling communities increased to 56 from 44 at the end of the first quarter of 2015. Home sales revenue was $162.5 million, an increase of $41.8 million, or 34.6%, from the first quarter of 2015.
The average home sales price was $192,491 for the quarter, up $12,625, or 7.0%, from the first quarter of 2015. The company attributed the increase to changes in product mix, price points in new markets, and a favorable pricing environment.
The company did not report data on new orders or backlog.
Adjusted gross margin as a percentage of home sales revenues for the first quarter of 2016 was 26.7% as compared to 27.8% for the first quarter of 2015. The company said the decrease was driven by a shift in geographic mix and a combination of increased construction costs and lot costs partially offset by higher average home sales price. LGI also said it experienced higher indirect overhead charges in the first quarter of 2016 primarily due to timing and costs related to expansion.
"Things are not slowing down at LGI Homes," said Eric Lipar, the LGI chairman and CEO. "We continue to see strong demand for home ownership across the country. This coupled with our first quarter results has set the pace for another year of solid growth and strong performance. ...we expect to deliver robust year-over-year results."