Company: LGIH
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001580670-25-000043
Chunk: 145

Company: LGI Homes, Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part II, Item 7
Chunk 145
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 31, 2024. Net income before income taxes for the three months ended March 31, 2025 was $5.7 million, a decrease of $17.4 million, or 75.2%, from $23.1 million for the three months ended March 31, 2024. The overall decreases in operating income and net income before income taxes were primarily due to overall lower home closings at a lower absorption rate, lower gross margin and higher advertising and other costs associated with the increase in average community count during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.  Our reportable segments contributed to net income before income taxes during the three months ended March 31, 2025 as follows: Central - $(3.1) million, or (54.1)%; Southeast - $8.1 million, or 141.8%; Northwest - $1.2 million, or 21.1%; West - $2.5 million, or 43.4%; and Florida - $(2.5) million, or (43.0)%.  

Income Taxes. Income tax provision for the three months ended March 31, 2025 was $1.7 million, a decrease of $4.3 million, or 71.4%, from income tax provision of $6.0 million for the three months ended March 31, 2024. The decrease in our income tax provision is primarily due to the overall decrease in net income before income taxes. The increase in our effective tax rate to 30.2% for the three months ended March 31, 2025 from 26.2% for the three months ended March 31, 2024 was primarily a result of an increase in the rate for the compensation cost in excess of deductions for share-based payments.

Net Income. Net income for the three months ended March 31, 2025 was $4.0 million, a decrease of $13.1 million, or 76.6%, from $17.1 million for the three months ended March 31, 2024. The decrease in net income was primarily attributed to overall lower homes closed, home sales revenues and gross margin during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.

Non-GAAP Measures

In addition to the results reported in accordance with accounting principles generally accepted