LGI Homes, Inc.

Welcome to LGI Homes' third quarter 2024 conference call. Today's call is being recorded and a replay will be available on the company's website at www.lgihomes.com. After management's prepared remarks, there will be an opportunity to ask questions. At this time, I'll turn the call over to Joshua Fatter, Executive Vice President of Investor Relations and Capital Markets. You may begin.

Joshua Fatter Thanks, LaTanya, and good afternoon. Before we begin, I'll remind listeners that this call contains forward-looking statements, including management's views on the company's business strategy, outlook, plans, objectives, and guidance for future periods. Such statements reflect management's current expectations and involve assumptions and estimates that are subject to risks and uncertainties that could cause those expectations to prove to be incorrect. You should review our filings with the SEC for a discussion of the risks, uncertainties, and other factors that could cause actual results to differ from those presented today. All forward-looking statements must be considered in light of those related risks, and you shouldn't place undue reliance on such statements which reflect management's current viewpoints and are not guarantees of future performance. On this call, we'll discuss non-GAAP financial measures, which are not intended to be considered in isolation or as substitutes for financial information presented in accordance with GAAP. Reconciliations of non-GAAP financial measures to the most comparable measures prepared in accordance with GAAP can be found in the press release we issued this morning and in our quarterly report on Form 10-Q for the quarter ended September 30th, 2024 that we expect to file with the SEC later today. This filing will be accessible on the SEC's website and in the Investor Relations section of our website. With me today 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.

Thanks, Josh. Good afternoon, and welcome to LGI Homes Earnings Call. We're pleased to report another strong quarter driven by sustained demand for new homes across the country. Despite continued affordability challenges, we delivered outstanding financial results that reflect our focus on operational excellence and a commitment to maximize profitability on every home sold. As highlighted in our press release this morning, we delivered 1,757 homes in the third quarter. Those closings combined with a record high ASP of more than $371,000 resulted in revenue of $652 million, an increase of 5.6% compared to last year, and the highest revenue we've reported since the second quarter of 2022. For the last several years, we've made considerable progress in acquiring and developing attractive land positions across the country. Over the last year, you've seen many of these communities come online, and we're extremely pleased to have ended the third quarter with 138 communities a noteworthy 30% increase over the prior year in our sixth consecutive quarter of community count expansion. Additionally, this was the largest absolute number of communities that we've added in any single year. Given when we acquired these communities, the capital invested in their development and the rising cost of replacement projects, their inherent value is substantial. In light of this, Simply maximizing absorptions at the expense of margins and shortening the economic lifespan of these assets in the process does not yield the optimal returns we believe are achievable with a little patience and a disciplined approach to pricing and incentives. Therefore, we continue to focus on driving profitability on every home we sell, even if the result is a pace that is below our historical average. This strategy reflects our commitment to maximizing long-term profitability rather than focusing solely on immediate output. Further, it ensures we sustain our strong margins and generate value for shareholders over a longer period, balancing today's performance with tomorrow's opportunities. The success of this strategy played out again during the third quarter as we delivered an adjusted gross margin of 27.2% up 20 basis points from the prior quarter and in line with our standout results from the same period last year. Additionally, we delivered a pre-tax net income margin of 14.1%, up 130 basis points sequentially, and significantly higher than our pre-pandemic average of 12.8%. These and other achievements contributed to diluted earnings per share of $2.95, representing an increase of 4% year-over-year and 19% sequentially. During the quarter, we averaged 4.4 closings per community per month. Our top markets on a closings per community basis were Las Vegas with 9.9, Nashville with 9, Charlotte with 8.9, Dallas-Fort Worth with 6.4, And Tampa also with 6.4 closings per community per month. Congratulations to these teams in these markets on their outstanding performance last quarter. One final highlight. We were proud to be recognized by Newsweek for the second consecutive year as one of the world's most trustworthy companies. This award underscores our commitment to integrity and excellence with our customers, with our employees, and with our investors. This recognition highlights the strength of our culture and the integrity of our employees who provide exceptional customer service as they help families across the country achieve the dream of homeownership. With that, I'll invite Charles to provide additional details on our financial results.