THE WOODLANDS, Texas, Dec. 17, 2013 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (Nasdaq:LGIH) today announced results for its third quarter and the nine months ended September 30, 2013.

Third Quarter 2013 Highlights and Comparisons to Third Quarter 2012¹

• Home Closings Increased 40.0% to 448
• 22 Active Selling Communities as of September 30, 2013
• Home Sales Revenue Increased 58.4% to $68.0 Million
• Average Home Sales Price Increased 13.1% to $151,779
• Adjusted Gross Margin as a Percentage of Home Sales Revenues of 27.4%²
• Approximately 11,000 Owned and Controlled Lots as of September 30, 2013

"LGI Homes' third quarter and year to date financial results demonstrate our proven ability to successfully grow using the unique sales model LGI has created which delivers better returns on capital and industry leading margins," said Eric Lipar, the Company's Chief Executive Officer and Chairman of the Board. "We are extremely pleased with these strong results and maintain our positive outlook as we continue to see robust demand from consumers looking for homeownership."

On November 13, 2013, LGI Homes, Inc. (the "Company") completed its initial public offering (the "IPO") issuing 10,350,000 shares of its common stock at $11.00 per share which generated net proceeds of approximately $102.7 million after deducting the underwriters' discounts and commissions, and offering expenses. Concurrent with the IPO, the Company acquired all of the equity interests of LGI Homes Group, LLC and LGI Homes Corporate, LLC and their subsidiaries (collectively referred to as "predecessor" or "LGI Homes Group (Predecessor)") in exchange for 10,003,358 shares of the Company's common stock. Prior to the IPO, the Company's predecessor owned a 15% equity interest in four unconsolidated joint ventures ("the LGI/GTIS Joint Ventures"). The Company's predecessor managed the day-to-day operations of the LGI/GTIS Joint Ventures, and accounted for its interests in the joint ventures using the equity method. At the time of the IPO, the Company also acquired all of GTIS' equity interests in the LGI/GTIS Joint Ventures in exchange for aggregate consideration of $41.4 million, consisting of a cash payment of approximately $36.9 million and 409,091 shares of the Company's common stock valued at $4.5 million (based on the IPO price of $11.00 per share).

For the quarter ended September 30, 2013, home closings increased 40.0% to 448 from 320 during the third quarter of 2012. This consists of a 44.6% increase in predecessor home closings to 240 and a 35.1% increase in the LGI/GTIS Joint Ventures' home closings to 208 homes. Active selling communities increased to 22 communities as of September 30, 2013, consisting of 14 predecessor communities and 8 LGI/GTIS Joint Ventures communities.

Home sales revenue for the third quarter of 2013 increased 58.4% as compared to the third quarter of 2012 to $68.0 million, consisting of an increase of 62.1% to $37.0 million for the Company's predecessor and an increase of 54.1% to $31.0 million for the LGI/GTIS Joint Ventures. This increase was due to the increase in the number of active selling communities, homes closed and average selling price per home.

The average home sales price during the third quarter of 2013 increased 13.1% as compared to the third quarter of 2012 to $151,779, consisting of a 12.1% increase in the Company's predecessor's average home sales price to $154,313 and a 14.1% increase in the average home sales price for the LGI/GTIS Joint Ventures to $148,855. This increase was primarily due to a shift in product mix and the pass through of increased construction costs to the homebuyer.

Adjusted gross margin as a percentage of home sales revenues of 27.4% for the third quarter of 2013 slightly decreased 50 basis points from 27.9% for the third quarter of 2012, reflecting the net impact of increased construction costs and higher developed lot costs, offset by higher average home sales prices.

Nine Months Ended September 30, 2013 Compared to Nine Months Ended September 30, 2012:

• Home Closings Increased 49.9% to 1,112
• Home Sales Revenue Increased 65.3% to $164.0 Million
• Average Home Sales Price Increased 10.3% to $147,452
• Adjusted Gross Margin as a Percentage of Home Sales Revenues of 27.9%³

For the nine months ended September 30, 2013, home closings increased 49.9% to 1,112 from 742 during the first nine months of 2012. This consists of a 72.2% increase in predecessor home closings to 637 and a 27.7% increase in the LGI/GTIS Joint Ventures' home closings to 475 homes.

Home sales revenue for the nine months ended September 30, 2013 increased 65.3% as compared to the first nine months of 2012 to $164.0 million, consisting of an increase of 87.4% to $95.0 million for the Company's predecessor and an increase of 42.2% to $68.9 million for the LGI/GTIS Joint Ventures. This increase in revenue was largely due to the increase in the number of active selling communities and expansion into new markets.

The average home sales price during the nine months ended September 30, 2013 increased 10.3% as compared to the first nine months of 2012 to $147,452, consisting of an 8.9% increase in the Company's predecessor's average home sales price to $149,188 and an 11.4% increase in the average home sales price for the LGI/GTIS Joint Ventures to $145,123. This increase was primarily due to a shift in product mix and the pass through of increased construction costs to the homebuyer.

Adjusted gross margin as a percentage of home sales revenues of 27.9% for the nine months ended September 30, 2013 slightly decreased 50 basis points from 28.4% for the nine months ended September 30, 2012, reflecting the net impact of increased construction costs and higher developed lot costs, offset by higher average home sales prices.

Outlook

Subject to the caveats in the Forward-Looking Statements section of this press release, the Company offers the following limited guidance. With the addition of two new communities in the fourth quarter of 2013, the Company will have at least 24 active selling communities at the end of 2013. The Company expects to close more than 420 homes during the fourth quarter of 2013.

Looking forward to 2014, the Company believes it will have 36 active selling communities at the end of the year and close 2,200 homes during the year. This outlook assumes that general economic and mortgage availability conditions in 2014 are similar to those in 2013.

Earnings Conference Call

The Company will host a conference call via live webcast for investors and other interested parties beginning at 10 a.m. Eastern Time on Wednesday, December 18, 2013. The call will be hosted by, Eric Lipar, Chief Executive Officer and Chairman of the Board, and Charles Merdian, Chief Financial Officer, Secretary and Treasurer.

Participants may access the live webcast by visiting the Company's investor relations website at www.LGIHomes.com. The call can also be accessed by dialing (855) 433-0929, or (970) 315-0256 for international participants.

An archive of the webcast will be available on the Company's website from approximately 1:00 p.m. Eastern Time on December 18, 2013 through 11:59 p.m. Eastern Time on December 25, 2013.

About LGI Homes, Inc.

Headquartered in The Woodlands, Texas, LGI Homes, Inc. engages in the design and construction of homes in Texas, Arizona, Florida, Georgia and recently New Mexico. LGI's core markets include Houston, San Antonio, Dallas/Fort Worth, Austin, Phoenix, Tampa, Orlando, Atlanta and more recently, Tucson and Albuquerque. For more information about the Company and its new home developments please visit the Company's website at www.LGIHomes.com.

Forward-Looking Statements

Any statements made in this press release that are not statements of historical fact, including statements about the Company's beliefs and expectations, are forward-looking statements within the meaning of the federal securities laws, and should be evaluated as such. Forward-looking statements include information concerning market conditions and possible or assumed future results of operations, including descriptions of the Company's business plan and strategies. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believe," "estimate," "project," "anticipate," "expect," "seek," "predict," "contemplate," "continue," "possible," "intent," "may," "might," "will," "could," "would," "should," "forecast," or "assume" or, in each case, their negative, or other variations or comparable terminology. For more information concerning factors that could cause actual results to differ materially from those contained in the forward-looking statements please refer to the "Risk Factors" section of the prospectus filed by the Company with the Securities and Exchange Commission ("SEC") on November 8, 2013 and subsequent filings by the Company with the SEC. The Company bases these forward-looking statements or projections on its current expectations, plans and assumptions that it has made in light of its experience in the industry, as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances and at such time. As you read and consider this press release, you should understand that these statements are not guarantees of future performance or results. The forward-looking statements and projections are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements or projections. Although the Company believes that these forward-looking statements and projections are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect the Company's actual financial results or results of operations and could cause actual results to differ materially from those expressed in the forward-looking statements and projections. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. If the Company does update one or more forward-looking statements, there should be no inference that it will make additional updates with respect to those or other forward-looking statements.

¹ Amounts presented include both LGI Homes Group (Predecessor) and the LGI/GTIS Joint Ventures.

² Please see "Non-GAAP Measures" for a reconciliation of adjusted gross margin to gross margin.

³ Please see "Non-GAAP Measures" for a reconciliation of adjusted gross margin to gross margin.

Non-GAAP Measures

In addition to the financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), this earnings announcement contains the non-GAAP financial measure adjusted gross margin. The reason for the use of this measure, a reconciliation of this measure to the most directly comparable GAAP measure and other information relating to this measure is included below.

Adjusted gross margin

Adjusted gross margin is a non-GAAP financial measure used by management as a supplemental measure in evaluating operating performance. The Company defines adjusted gross margin as gross margin less capitalized interest and excluding adjustments resulting from the application of purchase accounting included in the cost of sales. Management believes this information is useful because it isolates the impact that capitalized interest and items considered to be unusual and non-recurring have on gross margin. However, because adjusted gross margin information excludes capitalized interest, which has real economic effects and could impact results, the utility of adjusted gross margin information as a measure of operating performance may be limited. In addition, other companies may not calculate adjusted gross margin information in the same manner. Accordingly, adjusted gross margin information should be considered only as a supplement to gross margin information as a measure of performance. There are no purchase accounting adjustments included in cost of sales for the periods presented below.

The following table reconciles adjusted gross margin to gross margin, which is the GAAP financial measure that management believes to be most directly comparable (dollars in thousands):

(a) Calculated as a percentage of home sales revenue.

Land Acquisition and Development

The tables below show owned or controlled lots by market as of September 30, 2013 and December 31, 2012.