LGI Homes, Inc.

Welcome to the LGI Homes fourth quarter 2020 conference call. Today's call is being recorded and the 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. If anyone should require operator assistance during the conference call, please press star zero. At this time, I'd like to turn the call over to Joshua Fatter, Vice President of Investor Relations at LGI Homes. Mr. Fatter, you may begin.

Thanks. Good afternoon and welcome to the LGI Homes conference call to discuss our financial results for the fourth quarter and full year of 2020. Before we begin, I'll remind listeners that this call will contain forward-looking statements that include, among other things, statements regarding LGI Homes business strategy, outlook, plans, objectives, and guidance for 2021. All such statements reflect management's current expectations. However, these statements do involve assumptions and estimates and are therefore subject to risks and uncertainties that could cause management's 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 sections. 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 not place undue reliance on these forward-looking statements, which speak only as of the date of this conference call. Additionally, 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. Reconciliations of these non-GAAP financial measures to the most comparable measures prepared in accordance with GAAP can be found in either the earnings press release that we issued this morning and in our report on Form 10-K for the fiscal year ended December 31, 2020, that we expect to file with the SEC later this week. This filing will be accessible on the SEC's website and in the investor section of our website. Our hosts for today's call are Eric Leeper, LGI Homes Chief Executive Officer and Chairman of the Board, and Charles Murdian, Chief Financial Officer and Treasurer. I'll now turn the call over to Eric.

Thank you, Josh. Good afternoon, and welcome to everyone participating on our call today. I'm pleased to say we delivered another remarkable year of growth and profitability meeting or exceeding all of our guidance expectations. We closed 1,630 homes in December alone, an increase of 55% and our best month ever. Putting that in perspective, we closed more homes in December than we did in all of 2013, the year of our IPO. For the quarter, we closed 3,408 homes, an increase of over 35%. Again, for comparison, this was more homes than we closed in all of 2015. Our ability to deliver such extraordinary results is a testament to our systems-based processes and the talent and dedication of our people. As a result of our great quarter, we outperformed our guidance, closing 9,339 homes in 2020, an increase of 21% over 2019 in our seventh consecutive year of double-digit closings growth. We finished the year with 116 active communities, an increase of over 9% year-over-year and in line with our guidance. During the year, we expanded within our existing markets in addition to establishing new markets in Daytona Beach and Sarasota, Florida, Greenville, South Carolina, and Richmond, Virginia. For the fourth quarter of 2020, we averaged an impressive 10 closings per community per month company-wide, a new quarterly record. Our top five markets were DFW with 15.6 closings per community per month, Phoenix with 14.7%, Austin with 14.1%, Sarasota with 13%, and Seattle with 12.8%. For the full year, we averaged seven closings per community per month company-wide, a new annual record. Our top five markets this year were DFW with 10.8 closings per community per month, Austin with 9.9%, Houston with 9.3%, San Antonio with 9%, and Phoenix with 8.9%. We generated home sales revenue of approximately $2.4 billion in 2020, an increase of 29% over 2019, marking our seventh consecutive year of double-digit revenue growth. Most importantly, we drove this growth while increasing our profitability. Our pre-tax net income margins were a record 18.6% for the quarter and 15.5% for the year. We more than doubled our net income in the fourth quarter and finished the full year up 81% over 2019, delivering record return on equity of 32.6%. Finally, our significant cash flow generation and prudent management of our balance sheets resulted in a net debt-to-capitalization ratio of just 30.6%. A few additional highlights. We were recently recognized as one of America's most trusted builders. Since our founding, our mission has been to provide high-quality homes in desirable locations at price points within the financial reach of families dreaming of their first home, and this recognition is a testament to the success of that mission. We build our homes with the goal of making sustainability affordable for our customers, and we made great strides on this goal in 2020. I'm proud to say that 100% of the homes we closed last year included water-sense fixtures, energy-star appliances, and other energy-saving products designed to improve our homes' efficiency. These features ultimately save our customers money and reduce impacts on our environment. During the fourth quarter, we launched a redesigned website. Utilizing modern design, this new site enhances our online presence to meet the rapidly evolving digital expectations of our customers and allows us to focus on delivering an industry-leading user experience throughout every stage of our buyer's journey. Finally, we closed our 45,000th home in December, a significant landmark for our company and for the families that have entrusted us to fulfill their goal of home ownership. Now I'll turn the call over to Charles for more details on our record financial results.