LGI Homes, Inc. (NASDAQ:LGIH) Q1 2019 Earnings Conference Call Transcript
May 07, 2019 • 12:30 pm ET
Welcome to the LGI Homes First Quarter 2019 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. Mrs. Eaton, you may begin.
Rachel Lyons Eaton
Thank you. Welcome to the LGI Homes conference call discussing our results for the first quarter of 2019. Today's conference call will contain forward-looking statements that include among other things statements regarding LGI business strategy, outlook, plan, objectives and confirmation of 2019 guidance. 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 statement about forward-looking statements section for discussion of the risks, uncertainties and other factors that could cause our actual results to differ materially from those anticipated any 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 seek only as the date of this conference call.
Additionally, adjusted gross margin, a non-GAAP financial measure will be discussed on this 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 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 quarter ended March 31, 2019, that we expect to file with the SEC later today. This filing will be accessible on the SEC's website and in the Investor 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.
Thank you, Rachel and welcome everyone on this call. We appreciate your continued interest in LGI Homes. During today's call, I'll summarize the highlights and results from the first quarter of 2019. Then Charles will follow up to discuss our financial results in more detail. After he is done, we will conclude with comments and open the call for questions.
For the first quarter, we closed 1,228 homes, generating approximately $288 million in home sales revenue, which represented a 3.1% increase over the first quarter of 2018. Throughout the first quarter, we saw continued demand for affordable homes coupled with a positive response from buyers to lower interest rates. First quarter net orders were 1,948, an 8% increase over the first quarter of last year. While January and February were down year-over-year at 3% and 10% respectively, March