Lgi Homes, Inc. · NASDAQ:LGIH
Lgi Homes — Investor Presentation (May 2020)
16 slides from Lgi Homes's investor presentation, May 2020
Slide 1: Investor Presentation May 2020
INVESTOR PRESENTATION MAY 2020
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 $2.0 BILLION REVENUE 8,297 CLOSINGS TRAILING 12 MONTHS 6.8 AVERAGE ABSORPTIONS 23.8% GROSS MARGIN (1) COMPANY HIGHLIGHTS 25.9% ADJUSTED GROSS MARGIN (1) (2) 26.4% RETURN ON EQUITY LGI Homes is one of the nation’s fastest growing homebuilders in the United S
Slide 4: Year-Over-Year Growth
8,297 7,690 Year-Over-Year Growth 6,512 LGI Homes has experienced rapid growth. We grew our 5,845 revenue from $55.3 million in 2010 to $1.8 billion in 2019. Since our IPO, we have achieved an annual revenue 4,163 growth rate of 40.3%. We grew our closings from 439 homes in 2010 to 7,690 3,404 homes
Slide 5: Geographic Diversification
2018 2019 1,056 FOCUS ON GROWTH 14% 911 2013 2013 12% GEOGRAPHIC DIVERSIFICATION 170 77 5% 10% 827 1,592 11% 20% 12 1% Since our initial public offering in 2013, we have significantly diversified our business geographically. In 2013, our Central division represented 84% of our home closings compared
Slide 6: Over 35,000 Families Moved-In
TODAY OVER 35,000 FAMILIES MOVED-IN 34 Markets ALBUQUERQUE NASHVILLE ATLANTA OKLAHOMA CITY AUSTIN ORLANDO BIRMINGHAM PHOENIX CHARLOTTE PORTLAND COLORADO SPRINGS RALEIGH COLUMBIA RICHMOND DAYTONA BEACH SACRAMENTO DALLAS/FORT WORTH SAN ANTONIO DENVER SARASOTA FORT MYERS SEATTLE FORT PIERCE SOUTHERN CA
Slide 7: The LGI Difference
Affordable Alternative to Renting Target Consumer: Renters and First Time Homebuyers Move-In Ready Inventory 100% Spec – All Upgrades Included 2 to 5 Professionally Trained Sales Representatives per Office Marketing Excellence Unique and highly successful marketing system proven to convert renters i
Slide 8: Systems-Based Company
Standard Processes & Procedures Manuals Comprehensive Training ··· ··· ··· LGI Homes is a systems-based company with an “LGI Manuals are the backbone to our systematic approach. We focus on attracting the best talent and providing Way” for everything that we do. Our focus on systems The majority of
Slide 9: Inventory Management and Homebuilding Excellence
LGI HOMES INVENTORY MANAGEMENT Vertical Construction We maintain a target of 4 to 6 months of expected home closings in vertical construction at any one time. Raw Land, Land Under Development & Finished Lots HOMEBUILDING EXCELLENCE We expect to maintain a 3-5 year forward supply of owned lots in var
Slide 10: Top 5 Builder
OUR VISION IS TO BECOME A NATIONALLY RECOGNIZED TOP 5 BUILDER IN TERMS OF ANNUAL HOME CLOSINGS Organic Growth Wholesale Expand in existing and recently entered markets, as well as selective expansion into Company Acquisitions new markets. Acquisition targets are builders primarily Opportunistically
Slide 11: Annual Operating Results
LGI HOMES ANNUAL OPERATING RESULTS 2015 2016 2017 2018 2019 TTM Home Closings 3,404 4,163 5,845 6,512 7,690 8,297 Average Active Communities 47.1 57.9 73.1 80.6 95.7 101.8 Average Monthly Absorption 6.0 6.0 6.7 6.7 6.7 6.8 Rate Average Sales Price $185,146 $201,374 $215,220 $231,020 $239,032 $241,68
Slide 12: Condensed Balance Sheet
Consolidated Balance Sheet CONDENSED BALANCE SHEET LGI HOMES HAS SIGNIFICANT LIQUIDITY AND ACCESS TO CAPITAL MARKETS TO OPPORTUNISTICALLY FUND OUR GROWTH INITIATIVES December 31, December 31, December 31, March 31, (dollars in thousands) 2017 2018 2019 2020 ASSETS Cash and Cash Equivalents Accounts
Slide 13: Response to COVID-19
FOCUS ON PROTECTING OUR EMPLOYEES, CUSTOMERS AND STOCKHOLDERS RESPONSE TO COVID-19 Prioritize Health & Safety Cash Management • Enhanced office procedures for employee protection • Delayed or cancelled land acquisitions • Increased frequency of cleaning • Deferred April starts to reduce overall inve
Slide 14: Appendix
Appendix
Slide 15: Reconciliation of Adjusted Gross Margin (Non-GAAP)
RECONCILIATION OF ADJUSTED GROSS MARGIN (NON-GAAP) 12 MONTHS ENDED DECEMBER 31 & TRAILING TWELVE MONTHS AS OF MARCH 31, 2020 (dollars in thousands) 2015 2016 2017 2018 2019 TTM Home Sales Revenues $630,236 $838,320 $1,257,960 $1,504,400 $1,838,154 $2,005,288 Cost of Home Sales 463,304 616,707 937,54
Slide 16: LGI Homes, Inc. Investor Relations
LGI Homes, Inc. Investor Relations 1450 Lake Robbins Drive, Suite 430 The Woodlands, TX 77380 (281) 210-2619 InvestorRelations@LGIHomes.com