LGI Homes
LGI Homes logo | |
Traded as | NASDAQ: LGIH |
---|---|
Industry | Construction |
Founded | 2002 |
Headquarters | The Woodlands, Texas, U.S. |
Key people |
Thomas Lipar, Founder Eric Lipar, CEO Mike Snider, President |
Revenue | $149 million (2012) |
Number of employees | 400+[1] |
Slogan | The Leader in Affordable New Homes |
Website |
lgihomes |
LGI Homes (NASDAQ: LGIH) is a Texas-based builder of housing developments, with its development projects mostly focused in the southwestern region of the United States. According to Builder Magazine, LGI Homes is the 24th largest home builder in the United States.[2] In 2013, the company announced that they would be expanding to the southeast, and that plans to develop new home communities in Florida and Georgia were in place.[3] The company began building houses in the Houston area in 2003.[4]
Total revenue for LGI Homes in 2011 was $86 million, a 49% increase from the prior year, while end totals for 2012 show 1,062 homes sold and $149 million in revenues, with a 58% increase over 2011.[2] LGI Homes closed 1,617 homes in 2013.
LGI Homes began publicly trading shares of their company on November 7, 2013. The share price of the initial 9 million shares rose from $11 per share to $12.26 by market closing, an increase of 11%.[5] According to LGI Homes CEO Eric Lipar, the company plans to use the $90 million they raised to grow their company even more, with plans to expand particularly in major Texas markets.[6]
History
LGI Homes was founded by Tom Lipar in 2002 in The Woodlands, Texas. In the next year, the company closed on its first home. From there, the company expanded with housing developments in Houston, Austin, San Antonio and Dallas, Texas.[7] Builder Magazine named LGI Homes the industry's fastest growing private company of 2008.[2] In 2011, they expanded outside of Texas for the first time to include developments in Phoenix, Arizona.[8] In the same year, the company was recognized as the only builder on the Top 100 list to post gains across the three previous consecutive years. LGI Homes was named one of the Houston Fast 100, based on revenue growth in 2012.[1] The builder has started selling homes in the Tampa and Orlando areas, and has started planning and developing more communities in Orlando and new communities in the Atlanta metropolitan area.
Corporate culture
LGI Homes focuses on entry-level housing in the vicinity of major metropolitan areas. Its primary customer is the first-time homebuyer,[9] a segment of purchasers who made up around 43 percent of new home sales in 2008.[10] LGI suffered less than most similar companies during the collapse of the United States real estate market in 2008, being one of the few Top 100 builders to post gains in 2011.[11]
In 2012, the company was rated one of the top 100 Texas companies to work for, ranking 17 in the "Small Companies" category.[12] As of 2013, LGI Homes holds an A+ rating with the Better Business Bureau.[13]
Projects and sales
The low-end home market that serves as the focus of LGI Homes brand has grown throughout the company's history. Currently, LGI Homes builds in exurban areas, focusing development in towns that have traditionally been considered rural, but are now being incorporated into the greater metropolitan areas of their respective cities.
The company saw sales trend upward from 2006 to 2008, when it was the only builder in the Builder Magazine Top-200 builders to generate unit sales and see revenue growth across that period.[14] The company's growth slowed in 2009, when LGI Homes experienced a 9% drop in home sales, year-over-year[15] In comparison, the average drop in sales experienced by large homebuilders that year was 30%.[16] LGI Homes saw sales growth for 15 consecutive quarters through 3Q 2009. Second quarter earnings for 2012 were $34 million as a result of 246 closings with an average sale price of $138,359 compared to the prior closing record from the third quarter of 2011 – $30.7 million, 224 closings and an average sale price of $136,839.[17]
According to LGI Homes CEO Eric Lipar, the company plans to use the $90 million they raised to grow their company even more, with plans to expand particularly in major Texas markets.[18]
In October 2014, the company purchased Oakmont Home Builders and expanded into North Carolina, South Carolina and New Mexico. In the same year, the company closed 2,357 homes. In February 2015, LGI Homes expanded to Colorado.
Divisions, partnerships and subsidiaries
LGI Homes currently has several divisional offices, located in Houston, Dallas/Fort Worth, Austin, and San Antonio Texas, as well as offices in Phoenix, Arizona; Atlanta, Georgia; and Orlando and Tampa, Florida.[19]
In 2010, LGI Homes broke its partnership with Interlinc Mortgage Inc., which began operating in 2006.[20][21]
Community Name | Metro Area | Community Name | Metro Area |
---|---|---|---|
Glennwilde | Phoenix, Arizona | Sundance | Phoenix, Arizona |
Magma Ranch | Phoenix, Arizona | Blue Hills | Phoenix, Arizona |
Crystal Vista | Phoenix, Arizona | Caddis Haley | Tucson, Arizona |
San Lucas | Tucson, Arizona | Bella Vista | Denver, Colorado |
Legacy Park | Denver, Colorado | Cape Coral | Fort Myers, Florida |
Estates at Cherry Lake | Orlando, Florida | Highland Meadows | Orlando, Florida |
Lake Alfred Estates | Orlando, Florida | The Groves at Baytree | Orlando, Florida |
Ayersworth Glen | Tampa, Florida | Sherman Hills | Tampa, Florida |
Krenson Woods | Tampa, Florida | Villages at BridgeWater | Tampa, Florida |
Sutherland | Athens, Georgia | Avondale Springs | Atlanta, Georgia |
Maple Park | Atlanta, Georgia | Semaphore Crossing | Atlanta, Georgia |
St. Joseph's | Atlanta, Georgia | Sutherland | Atlanta, Georgia |
Camino Crossing | Albuquerque, New Mexico | Sierra Ranch | Albuquerque, New Mexico |
Autumn Woods | Charlotte, North Carolina | Kendrick Farm | Charlotte, North Carolina |
Mallard Lake | Charlotte, North Carolina | The Reserve at Back Creek | Charlotte, North Carolina |
The Village at Brierfield | Charlotte, North Carolina | Applegate | Charlotte, North Carolina |
Avery Meadows | Charlotte, North Carolina | Bunton Creek | Austin, Texas |
Presidential Glen | Austin, Texas | Sonterra | Austin, Texas |
Windmill Farms | Dallas, Texas | Oak Hollow | Dallas, Texas |
Carter Ranch | Dallas, Texas | Waterview Farms | Fort Worth, Texas |
Stone Creek Ranch | Fort Worth, Texas | Lasater Ranch | Fort Worth, Texas |
The Bridges | Fort Worth, Texas | Twin Mills | Fort Worth, Texas |
Bauer Landing | Houston, Texas | Lake Breeze | Houston, Texas |
Center Park | Houston, Texas | Deerbrook Estates | Houston, Texas |
Hidden Meadow | Houston, Texas | Ranch Crest | Houston, Texas |
Cypresswood Trails | Houston, Texas | Sunrise Meadow | Houston, Texas |
Sterling Lakes | Houston, Texas | West Meadows | Houston, Texas |
The Trails at Seabourne Parke | Houston, Texas | Vauthier Court | Houston, Texas |
Hall Park | Houston, Texas | Luckey Ranch | San Antonio, Texas |
The Reserve at Luckey Ranch | San Antonio, Texas | Foster Meadows | San Antonio, Texas |
Potranco Ranch | San Antonio, Texas | Magnolia Springs | San Antonio, Texas |
See also
References
- ↑ 1.0 1.1 Zucker, Shaina (August 10, 2012). "Meet Houston's Fast 100: LGI Homes, Today's Business Solutions, Victory Transportation Systems". Houston Business Journal. Retrieved 26 June 2013.
- ↑ 2.0 2.1 2.2 "2013 Builder Magazine "Builder 100"". builderonline.com. The Builder. Retrieved 4 December 2014.
- ↑ "Affordable New Homes from LGI Homes are Coming to Central Florida". LGI Homes. July 10, 2012. Retrieved 26 June 2013.
- ↑ "About LGI Development". lgidevelopment.com. LGI Development. Retrieved 26 June 2013.
- ↑ Mantell, Ruth (7 November 2013). "The Wall Street Journal's Market Watch". Retrieved 24 February 2015.
- ↑ Zucker, Shaina (8 November 2013). "LGI Homes CEO has big plans for $90M raise". Houston Business Journal. Retrieved 24 February 2015.
- ↑ "LGI Homes Looking to Expand to San Antonio". SBC Magazine. March 27, 2013. Retrieved 26 June 2013.
- ↑ Dawson, Jennifer (December 10, 2010). "LGI Homes on fast track with lot acquisitions, expansion to Phoenix". Houston Business Journal. Retrieved 26 June 2013.
- ↑ "Refuse to Participate in the Housing Slow-Down", Builder Radio interview with company CEO Eric Lipar, 2008.
- ↑ "Characteristics of First-Time Homebuyers", National Association of Homebuilders, 2008.
- ↑ "Exception to the Rule", Builder Magazine, March, 2009.
- ↑ "2012 "Best Companies to Work for in Texas" - small employer". bestcompaniestx.com. The Best Companies to Work For in Texas. Retrieved 26 June 2013.
- ↑ "BBB Business Review - LGI Homes". bbb.org. Better Business Bureau. Retrieved 26 June 2013.
- ↑ Dawson, Jennifer (April 4, 2010). "LGI Homes, GoldenTree Insite targets dirt-cheap lots". Houston Business Journal. Retrieved 26 June 2013.
- ↑ "LGI Homes" from the Builder Magazine 2009 "Builder 100".
- ↑ 2009 "Builder 100", top-100 builder statistics from Builder Magazine.
- ↑ Statistics from LGI Homes.
- ↑ Zucker, Shaina. "LGI Homes CEO expects continued expansion after IPO". Houston Business Journal. American City Journals. Retrieved 17 December 2013.
- ↑ According to LGIHomes.com
- ↑ "InterLinc Mortgage" from LGIDevelopment.com
- ↑ "About InterLinc" from InterlincMortgage.com