Company: LGIH
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001580670-25-000058
Chunk: 47

Company: LGI Homes, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 offset by an increase in other expenses.  General and administrative expenses as a percentage of home sales revenues were 6.1% and 5.1% during the three months ended June 30, 2025 and 2024, respectively.  The increase in general and administrative expenses as a percentage of home sales revenues was primarily due to lower home sales revenues during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.

Other Income, Net. Other income, net of other expenses was $2.4 million for the three months ended June 30, 2025, a decrease of $6.9 million from $9.4 million for the three months ended June 30, 2024. The decrease in other income, net of other expenses, primarily reflects the decrease in income associated with our investment in unconsolidated entities, the decrease in interest income and the decrease in gains realized from the sale of residential lots not directly associated with our core homebuilding operations. 

Operating Income and Net Income before Income Taxes. Operating income for the three months ended June 30, 2025 was $39.6 million, a decrease of $27.9 million, or 41.3%, from $67.5 million for the three months ended June 30, 2024.  Net income before income taxes for the three months ended June 30, 2025 was $42.0 million, a decrease of $34.8 million, or 45.3%, from $76.9 million for the three months ended June 30, 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 indirect overhead expenses associated with the increase in average community count during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.  Our reportable segments contributed to net income before income taxes during the three months ended June 30, 2025 as follows: Central - $9.1 million, or 21.5%; Southeast - $18.2 million, or 43.2%; Northwest - $2.2 million, or 5.2%; West - $10.7 million, or 25.5%; and Florida - $1.9 million, or 4.6%.  

Income Taxes. Income