LGI Homes, Inc.

Welcome to LGI Homes first quarter 2025 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 comments, there will be an opportunity to ask questions. At this time, I'll turn the call over to Joshua Fader, Executive Vice President of Investor Relations and Capital Markets.

Thanks, and good afternoon. 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 that are not guarantees of future performance. On this call, we'll discuss non-GAAP financial measures that 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 March 31st, 2025 that we expect to file with the SEC later today. This file will be accessible on the SEC's website and in the investor relations section of our website. I'm joined today by 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. During the quarter, we continue to see strong demand for new homes. Families across the country are excited about the possibility of home ownership and the lack of existing inventory combined with our ability to offset persistently high mortgage rates through compelling financing incentives is drawing customers into our information centers. However, affordability remains the biggest challenge for buyers, and rate volatility affects not only their ability to purchase a home, but also their confidence in moving forward with that decision. Against this challenging and uncertain backdrop, we're pleased with the solid results we delivered in the first quarter of 2025. As we noted in our last call, higher mortgage rates in October and November weighed on our year-end backlog, and with rates rising in further in January, the first quarter got off to a slow start. While February brought some improvement, the overall trend remained muted. However, in March, the pace materially improved, signaling a belated start in spring sales activity just as the quarter ended. As highlighted in our press release this morning, we delivered 996 homes in the first quarter at an average sales price of $352,831, resulting in revenue of $351.4 million. During the quarter, we recognized a one-time expense related to the completion of our Forward Commitment Incentive Program that weighed on revenue and gross margins, as well as fees related to that charge that flowed through our G&A expense. We ended the first quarter with 146 communities, a 22 percent increase over the prior year. During the first quarter, our top markets on a closings per community basis were Richmond with 5.3, Charlotte with 4.6, Raleigh with 4.3, Atlanta with 3.8, and Nashville with 3.6. Congratulations to the teams in these markets on their strong performance last quarter. The improvement in lead and order trends in March enabled us to close out the first quarter with a strong backlog as we transitioned into the second quarter. We signed 1,437 net contracts in the first quarter and ended March with 1,040 homes in our backlog, representing over $406 million. Throughout our history, evidence has shown that training and time spent in the role are the keys to new salespeople hitting standards and delivering their best results. As part of last year's rapid community count growth, we welcomed hundreds of new team members across every level of our organization. As these individuals enter their second year with LGI Homes, we're confident that their proficiency with our selling system and growing confidence will positively impact our results. Earlier this month, we welcomed our sales leaders to our corporate headquarters for intensive sales training that they will roll out to our sales teams across the country, setting the stage for a higher performing, more agile sales organization. By reinforcing foundations, building belief, sharpening skills, enhancing alignment with our core values, we're ensuring that our team is well-equipped to seize every opportunity that comes through our doors, particularly while the market remains challenging. Despite recent headwinds, we're confident in the long-term outlook for the housing market. The persistent shortage of entry-level homes across the country represents a societal challenge that underscores the importance of affordable new residential construction. Underlying demographic fundamentals will only increase this need setting the stage for a long runway of sustained demand for homeownership. These structural dynamics provide us with clarity and conviction as we continue to invest in our future growth. With that, I'll invite Charles to provide additional details on our financial results. Thanks, and good afternoon.