Company: LGIH
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001580670-25-000058
Chunk: 111

Company: LGI Homes, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 111
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 commitments, including for purchase of land; 

(ii) it does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt; 

(iii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and EBITDA does not reflect any cash requirements for such replacements or improvements; 

(iv) it does not adjust for all non-cash income or expense items that are reflected in our statements of cash flows; 

(v) it does not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations; and 

(vi) other companies in our industry may calculate it differently than we do, limiting its usefulness as a comparative measure. 

Because of these limitations, our EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business or as a measure of cash that will be available to us to meet our obligations. We compensate for these limitations by using our EBITDA along with other comparative tools, together with GAAP measures, to assist in the evaluation of operating performance. These GAAP measures include operating income, net income and cash flow data. We have significant uses of cash flows, including capital expenditures, interest payments and other non-recurring charges, which are not reflected in our EBITDA. EBITDA is not intended as an alternative to net income as an indicator of our operating 

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performance, as an alternative to any other measure of performance in conformity with GAAP or as an alternative to cash flows as a measure of liquidity. You should therefore not place undue reliance on our EBITDA calculated using these measures.

The following table reconciles EBITDA to net income, which is the GAAP financial measure that our management believes to be most directly comparable (dollars in thousands):

Three Months Ended June 30,Six Months Ended June 30,2025202420252024Net income$31,533 $58,573 $35,527 $75,626 Income tax provision (benefit)10,507 18,310 12,237 24,351 Depreciation and amortization1,014 777 1,875 1,450 Capitalized interest charged to cost of sales11,836 10,632 20,103 17,233 EBITDA$54,890 $88,292