LGI Homes, Inc. (NASDAQ:LGIH) Q4 2017 Earnings Conference Call - Final Transcript

Feb 27, 2018 • 12:30 pm ET


LGI Homes, Inc. (NASDAQ:LGIH) Q4 2017 Earnings Conference Call - Final Transcript


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Welcome to the LGI Homes Fourth Quarter 2017 Conference Call. Today's call is being recorded and a replay will be available on the company's website later today at www.lgihomes.com. We have allocated an hour for prepared remarks and Q&A. [Operator Instructions]

At this time, I will turn the call over to Rachel Eaton, Chief Marketing Officer at LGI Homes. Ms. Eaton, you may begin.

Rachel Eaton

Thank you. Welcome to the LGI Homes conference call discussing our results for the fourth quarter and full-year 2017. Today's conference call will contain forward-looking statements that include among other things, statements regarding LGI's business strategy, outlook, plans, objectives and guidance for 2018. All such statements reflect current expectations. However, they do involve assumptions, estimates and other risks and uncertainties that could cause our expectations to prove to be incorrect.

You should review our filings with the SEC, including our risk factors and cautionary statements about forward-looking statements section for a discussion of the risks, uncertainties, and other factors that could cause our actual results to differ materially from those anticipated in these forward-looking statements. These forward-looking statements are not guarantees of future performance. You should consider these forward-looking statements in light of the related risks and you should not place undue reliance on these forward-looking statements, which speak only as of the date of this conference call.

Additionally, adjusted gross margins and non-GAAP financial measures will be discussed on this conference call. The presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. A reconciliation of adjusted gross margin to gross margins, the most comparable measure prepared in accordance with GAAP is included in the earnings press release that we issued this morning and in our annual report on Form 10-K for the fiscal year ended December 31, 2017 that we expect to file with the SEC, later today. This filing will be accessible on the SEC's website and in the Investors section of our website at lgihomes.com.

Joining me today are Eric Lipar, LGI Homes' Chief Executive Officer, and Charles Merdian, the company's Chief Financial Officer.

With that, I'll now turn the call over to Eric.

Eric Lipar

Thank you, Rachel, and welcome to everyone on this call. We appreciate your continued interest in LGI Homes. 2017 marked our fourth full-year as a public company. Our primary objective when we went public in 2013 was to access the capital markets to fuel our growth by replicating our business model across the country. Over the past four years, we have more than tripled the size of our organization. And today LGI Homes is selling across 11 states, in 21 markets, and we have start-up operations in four additional new markets including Sacramento, Oklahoma City, Birmingham, and Las Vegas.

As we have continued to grow, we have maintained the LGI culture, demonstrating that our unique operating model is sustainable. Our employees are our most vital assets and continue to make the difference. It is