LGI Homes Q1 Profit Rises - Quick Facts

(RTTNews) - LGI Homes Inc. (LGIH) said that its net income for the first quarter ended March 31, 2014 increased to $4.6 million or $0.22 per share, from $2.5 million in the year ago quarter.

The latest-quarter result included the cost of sales of $1.1 million related to the step up adjustment for homes acquired in the GTIS Acquisitions that were closed during the quarter.

Home closings during the first quarter of 2014 increased 91.7% to 485 from 253 during the first quarter of 2013. Active selling communities increased 64.7% to 28 from 17 in the first quarter of last year. During the first quarter of 2014, the Company's Southwest Division successfully expanded into the Tucson, Arizona and Albuquerque, New Mexico markets.

Home sales revenues for the first quarter of 2014 increased 112.4% to $75.9 million compared to the first quarter of 2013. The increase in home sales revenues is primarily due to the increase in the number of homes closed and an increase in the average home sales price.

The average home sales price was $156,535 for the first quarter of 2014, an increase of $15,288, or 10.8%, over the first quarter of 2013. This increase was primarily due to an improved pricing environment and a shift in product mix.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.14 per share and revenues of $73.87 million for the quarter. Analysts' estimates typically exclude special items.

The company increased its previously released guidance. The company believes it will close at least 2,300 homes and have a minimum of 37 active selling communities by the end of the year. In addition, the Company now offers guidance on earnings per share, and forecasts earnings per share for 2014 to be between $1.22 and $1.30 per share. Analysts project annual earnings per share of $1.22.

This outlook assumes that general economic and mortgage availability conditions in 2014 are similar to those in 2013. In addition, this outlook also assumes that home sales prices, construction costs and overall absorption rates for the remainder of 2014 are consistent with the Company's recent experience.