Company: LGIH
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001580670-25-000076
Chunk: 151

Company: LGI Homes, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 2
Chunk 151
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 Ended September 30,2025202420252024Net income$19,704 $69,575 $55,231 $145,201 Income tax provision (benefit)6,997 22,277 19,234 46,628 Depreciation and amortization1,178 830 3,053 2,280 Capitalized interest charged to cost of sales11,004 12,954 31,107 30,187 EBITDA$38,883 $105,636 $108,625 $224,296 EBITDA margin %(1)9.8 %16.2 %8.8 %13.6 %

(1)Calculated as a percentage of home sales revenues.

Net Debt to Capital Ratio Reconciliation

Net debt to capital ratio is a non-GAAP financial measure used by management as a supplemental measure in  understanding the leverage employed in our operations and as an indicator of our ability to obtain financing. We define net debt to capital ratio as net debt (which is total debt minus cash and cash equivalents) divided by net debt plus total equity.  Our management believes that the presentation of net debt to capital ratio provides useful information to investors regarding the Company’s financial leverage and its ability to meet long-term obligations.  By excluding cash and cash equivalents from total debt, the ratio offers a clearer view of our capital structure and financial flexibility.  Our management uses this metric to monitor our capital efficiency and to evaluate the effectiveness of our capital management strategies over time.  Other companies may define this measure differently and, as a result, our measure of net debt to capital ratio may not be directly comparable to the measures of other companies. 

The following table reconciles net debt to capital ratio (a non-GAAP financial measure) to debt to capital ratio, which is the GAAP financial measure that our management believes to be most directly comparable  (dollars in thousands):

September 30, 2025December 31, 2024Total debt (Notes payable)$1,751,427 $1,480,718 Total equity2,079,374 2,037,228 Total capital$3,830,801 $3,517,946 Debt to capital ratio45.7 %42.1 %Total debt (Notes payable)$1,751,427 $1,480,718 Less: Cash and cash equivalents61,979 53,