Slide 1: Investor Presentation
Investor Presentation December 2017
Slide 2: Cautionary Statement
Cautionary Statement 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 looking statements” within
Slide 3: One of the Nation's Fastest Growing Homebuilders
One of the Nation’s Fastest Growing Homebuilders Founded in 2003, LGI Homes (NASDAQ: LGIH) has delivered over 20,000 homes Focus on entry level homebuyers Profitable every year since inception Proven ability to expand into new markets Named 2016 Builder of the Year by Professional Builder Focused on
Slide 4: A History of Successful Expansion
A History of Successful Expansion Entered the Portland, Entered the Dallas, Phoenix Entered the Atlanta & Raleigh, Minneapolis & Entered the San Antonio Market Entered the Denver Market Winston-Salem Markets & Austin Markets Orlando Markets Commenced building operations Entered the Fort Worth Entere
Slide 5: Year-Over-Year Home Closings Growth
Year-Over-Year Home Closings Growth 5,075 * 4,163 3,404 Home Closings 2,356 Per + Year 1,617 1,062 627 439 2010 2011 2012 2013 2014 2015 2016 2017 YTD* (11 months) Note: 2013 and prior home closings are pro forma figures, adjusted for the LGI/GTIS Joint Ventures not consolidated prior to LGI’s IPO 5
Slide 6: Annual Home Closings by Division
Annual Home Closings by Division 2,500 2,000 1,500 1,000 500 - 2013 2014 2015 2016 YTD 3Q17 Central Southwest Florida Southeast Northwest Note: 2013 home closings are pro forma figures, adjusted for the LGI/GTIS Joint Ventures not consolidated prior to LGI’s IPO 6
Slide 7: Unique and Proven Operating Model
Unique and Proven Operating Model We have demonstrated the ability to profitably take our model to new markets. 7
Slide 8: Differentiated Sales & Marketing Approach
Differentiated Sales & Marketing Approach Unique & highly successful marketing system proven to convert renters into new homeowners Weekly distribution of approximately 400,000 direct mailings to renters within a 25-mile radius of our active communities Minimal reliance on realtors 2-5 Sales
Slide 9: Commitment to Effective Training
Commitment to Effective Training Comprehensive 100-day introductory training program Weekly training sessions held in each of our sales offices Weekly nationwide sales conference call Overview of 100 Day Training Process Quarterly training retreats for upper level management Quarterly mana
Slide 10: Flexible & Value-Oriented Land Acquisition Strategy
Flexible & Value-Oriented Land Acquisition Strategy We pursue a flexible land acquisition strategy of purchasing or optioning finished lots, at attractive prices, or purchasing raw land for residential development – Experienced in converting raw land into residential communities given our history
Slide 11: Multiple Avenues for Continued Growth
Multiple Avenues for Continued Growth Organic growth Product expansion Corporate acquisitions Expansion in existing markets Ability to add scale through the Increase product offerings acquisition of appropriately • Favorable demographic and economic trends with home deliveries at positioned ho
Slide 12: Financial Highlights
Slide 13: Significant Operating Momentum
Significant Operating Momentum Home Closings Active Selling Communities, Average Home Sales Price ($000s) as of September 30 4,163 4,001 77 $213 $201 $199 3,404 $185 $184 3,024 59 $163 $161 2,356 2,458 50 1,704 34 2014 2015 2016 YTD '14 YTD '15 YTD '16 YTD '17 2014 2015 2016 2017 2014 2015 2016 YTD
Slide 14: Growth-Oriented Capital Structure
Growth-Oriented Capital Structure Consolidated Balance Sheet December 31, December 31, September 30, The Company has ($ in thousands) 2015 2016 2017 significant liquidity and ASSETS Cash and cash equivalents $ 37,568 $ 49,518 $ 47,968 access to capital markets Accounts receivable 17,325 17,055 32,71
Slide 15: Land Position & Inventory Mix (as of 9/30/2017)
Land Position & Inventory Mix (as of 9/30/2017) Highlights Owned vs. Optioned • Total controlled lots of 37,063 • Purchase finished lots when available Owned 44% 56% • Target 3-5 year lot supply in each Controlled submarket Geographic Mix Inventory Breakdown (owned and controlled lots) 5% 1% 10% Cen
Slide 16: Appendix
Slide 17: Adjusted Gross Margin Reconciliation
Adjusted Gross Margin Reconciliation 12 months ended 9 months ended December 31, September 30, ($ in thousands) 2014 2015 2016 2014 2015 2016 2017 Home sales revenues $383,268 $630,236 $838,320 $274,848 $453,472 $601,490 $852,985 Cost of home sales 280,481 463,304 616,707 201,661 333,430 444,205 631
Slide 18: LGI Homes Investor Relations
LGI Homes Investor Relations 1450 Lake Robbins Drive, Suite 430 The Woodlands, TX 77380 (281) 210-2619 InvestorRelations@LGIHomes.com