May 08, 2018 • 12:30 pm ET

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Presentation
Operator
Operator

Welcome to the LGI Homes First Quarter 2018 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 would like to turn the call over to Rachel Eaton, Chief Marketing Officer at LGI Homes. Ms. Eaton, you may begin.

Executive
Rachel Eaton

Thank you. Welcome to the LGI Homes conference call discussing our results for the first quarter of 2018.

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 margins to gross margin, the most comparable measure prepared in accordance with GAAP is included in the earnings press release that we issued this morning and in our quarterly report on Form 10-Q for the first quarter of 2018 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.

Executive
Eric Lipar

Thank you, Rachel, and welcome to everyone on this call. We appreciate your continued interest in LGI Homes.

During today's call, I will summarize the highlights and results from the first quarter of 2018. Then Charles will follow-up to discuss our financial results in more detail. After he has done, we will conclude with comments and what we are seeing for the second quarter and our expectations for the remainder of 2018 before we open the call for questions.

For the first quarter, we closed 1,244 homes, a 63.5% increase in home closings, compared to the 761 homes closed during the first quarter of last year. We also generated approximately $279 million in home sales revenue, which represents a 71.3% increase over the first quarter of 2017.

Absorption in the first quarter averaged 5.4 closings