LGI Homes(LGIH) - 2024 Q4 - Annual Results

Home Sales Performance - Home sales revenues for Q4 2024 decreased by 8.4% to $557.4 million compared to Q4 2023[7] - Full year home closings for 2024 totaled 6,131 homes, including a bulk sale of 103 leased homes, representing a decrease of 10.4% from 2023[7] - Total home sales revenues for the year ended December 31, 2024, were $2,202,598, a decrease from $2,358,580 in 2023[22] - The company reported 6,028 home closings in 2024, down from 6,729 in 2023, with an average sales price per home closed of $365,394[22] - The average sales price per home closed increased by 5.1% to $363,598 in Q4 2024[7] - The average sales price per home closed in Q4 2024 was $363,598, compared to $346,083 in Q4 2023[21] Financial Metrics - Full year gross margin for 2024 was 24.2%, an increase of 120 basis points from 2023[7] - Adjusted gross margin for Q4 2024 was $140,295, down from $152,503 in Q4 2023, with a gross margin percentage of 22.9% compared to 23.4% in the previous year[20] - The company reported a gross margin of $533,288 for the year ended December 31, 2024, slightly down from $542,187 in 2023[20] - Projected full year gross margin for 2025 is expected to be between 23.2% and 24.2%[11] Future Projections - The company projects full year closings for 2025 to be between 6,200 and 7,000 homes, with an average sales price between $360,000 and $370,000[4] - The effective tax rate for 2025 is projected to be approximately 24.5%[11] Backlog and Inventory - Ending backlog value at December 31, 2024 was $236.5 million, with 599 homes in backlog[11] - As of December 31, 2024, the company had a backlog of 599 homes valued at $236,511, compared to 590 homes valued at $224,851 in 2023[25] - The company owned or controlled a total of 70,899 lots as of December 31, 2024, with 53,317 being owned lots[24] Market Activity - Active selling communities increased by 29.1% to 151 as of December 31, 2024[11] - The average community count for the year ended December 31, 2024, was 130.5, compared to 103.9 in 2023[22] - The average monthly absorption rate for the total reportable segments was 3.6 in Q4 2024, down from 5.2 in Q4 2023[21] Cancellation Rates - The cancellation rate for 2024 was 22.8%, an improvement from 25.4% in 2023[25] Liquidity - Total liquidity as of December 31, 2024 was $323.7 million, including cash and cash equivalents of $53.2 million[11]