LGI Homes, Inc. (NASDAQ:LGIH) Q3 2019 Earnings Conference Call - Final Transcript

Nov 05, 2019 • 12:30 pm ET


LGI Homes, Inc. (NASDAQ:LGIH) Q3 2019 Earnings Conference Call - Final Transcript


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Welcome to the LGI Homes Third 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. Ms. Eaton, you may begin.

Rachel Eaton

Thank you. Welcome to the LGI Homes conference call discussing our results for the third quarter of 2019 and the nine months ended September 30th, 2019.

Today's conference call will contain certain forward-looking statements that include among other things, statements regarding LGI's business strategy, outlook, plans, objectives and guidance for 2019, 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 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 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 September 30th, 2019, 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 www.LGIHomes.com.

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

With that, I will 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. During today's call, I will summarize highlights and results from the third 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.

Before we get started, I want to recognize that this week marks the 6th anniversary of LGI Homes becoming a public company. At the time of our IPO, our objective was to fuel our growth and replicate our business model across the country. In the past six years, we have expanded into more than a dozen new markets, quadrupled the size of our organization and seen tremendous