Earnings call transcript Q2 2023

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Operator

Welcome to LGI Homes Second Quarter 2023 Conference Call. Today's call is being recorded, and a replay will be available on the company's website at www.lgihomes.com. [Operator Instructions].

At this time, I'll turn the call over to Josh Fattor, positive Investor Relations and Capital Markets.

Josh Fattor

Thanks, and good afternoon. this company's forward-looking objectives business for that views including and listeners XXXX. the on strategy remind call statements, contains management's guidance I'll outlook, plans, that and reflect that and management's to assumptions current statements prove cause to expectations to incorrect. Such and and management's could estimates be are expectations uncertainties subject risks involve

presented statements You should risks, the and results and on are be not factors other with management's differ uncertainties reflect certain light cause to a of actual current of forward-looking undue statements, such for should risks, review SEC our today. from in considered and viewpoints which those reliance that must not filings the discussion All could those of performance. place guarantees you future

discuss filing to GAAP the issued accordance financial not to financial as press and we'll are in of the with accordance for XXXX, be Investor presented or in isolation XX-Q report Form June on ended non-GAAP website. comparable non-GAAP today. be in quarter found in for our GAAP. measures that on intended with financial substitute information measures can and the most with be Relations in the we measures morning On we later This in this SEC of considered expect accessible to that this the SEC's our file website quarterly release section will Reconciliations the call, prepared XX,

by Eric Financial the Treasurer. call LGI Officer today's of Chief Board; Officer on joined Merdian, Chairman Chief Charles I'm Lipar, Homes' Executive and and and

to the turn over call now I'll Eric.

Eric Lipar

initiatives progress longer-term recent our the We're and backdrop reported continued results uncertainty. our to year proud of strategic successfully guidance afternoon, of to against this and Thanks, earnings objectives. and welcome full Josh. morning grateful to our significant represent our The executed economic we towards employees accomplishments these call. Good

invest the in a to a million total X,XXX the increase in quarter, of revenue. quarter and period We're second the second identifying active the communities, closed of over with to $XXX XX the continuing We to ended new years we of bringing year. communities our come. net in and last growth business, for opportunities quarter over generated XX% a more communities homes, the compared same increase additional growth In first online XXX

Company-wide, we we per averaged teams our from month, XX% quarter. The in community resulted and first reported X.X X.X last on over net pace buyers of a closings strong trained our connecting the at per continued with base sales the the call. improvement the order highly and our success qualified increase motivated delivered flow-through

top with community Our per market closings was Worth basis on month. a per closings Dallas/Fort XX.X

to followed these Houston Congratulations with closings Next teams with with Rounding per X by Nevada, month. out outstanding Fort last Pierce, markets with the Florida XX Charlotte closings, and your top X.X and X.X. each Las Vegas, in performance were the quarter.

we on progress quarter, initiatives. significant X key the made During

First, we increased affordability for customers. our

of the of our decrease entirely from trend the sizes success homes of the qualify drive This XX% segments percentage than The last went market results. X our the the during offering. new out in feet in prices increasing in in As In customers reduce a between introduced square floor to coming selling communities quarter prices XX% last materialize of year-over-year completed. most markets, year X of has for started we just despite the smaller homes footage quarter of closings and X,XXX quarter. in cooled from in or second our helped number prices homeownership. smallest more that to enable our starting gaps reduced square that average smaller further size to this we plans bridge of The pivoted existing initiative to selling summer

reduce vary, homeownership future the will While of factor in efforts to will success the results. a prices be we our our selling cost home sizes quarters of coming and in continued future key believe the

our profitability profitability reflected other in metrics that basis with their was historical XXX increase back quarter pleased margins to call, focus. quarter. gross gross return ahead that margins to On our the the levels, we're initiative key of we during shared starting to second I'm The point intention to a report and our increase in last schedule.

In increases, at of we our adjusted historical sales profiles point both results. making. margins reduced in XXX margin a currently a are line we're a margins decision quarter, levels house every in through opening in the is foremost second costs, combination price industry-leading basis new achieved gross communities and of improvement and with Returning that financial successful

we're work While we've do, year-to-date. there's made still progress to encouraged the by

now over on details the our Charles call turn results. financial more to I'll for

Charles Merdian

X.X% quarter second Sequentially, X,XXX the and in we total Revenue representing quarter XXX closings, similar see total quarter order began wholesale what Eric. and year. homes same $XXX.X up through was pace on XX.X% and benefit prior million were year XX.X% revenue quarter's delivered strong as flow the our to closings the based through was channel, first Thanks, to up in Of to our were our start in of from demand last we continue this healthy closings, to the closed. results.

attributable our and price a of and homes smaller, lower-priced community more average our delivering Florida selling affordable at in floor X.X% Our success Southeast segments, and Central, transitions year-over-year lower sequentially. was higher $XXX,XXX The was sold plans. both to of decrease percentage

and was XX.X%. second Our XX%, quarter was our gross gross adjusted margin margin

raising and success to most guided margin adjusted XXX basis was highlighted, openings community by As and input on points higher-margin communities, prices call. of we improvement lower costs point new our to Eric XXX at in outperformance compared gross basis profiles. last The our sequentially our the in improved driven

this million sales were general revenue, a XXX capitalized $XX.X point or basis where for XXX excluded and improvement X.X% the charged inventory cost and was second on $X.X purchase related spending point selling, interest curtailed we million reduced expenses or first in accounting $X.X were million of Selling of year. revenue quarter Adjusted million quarter to The X.X% basis expenses gross sequential administrative due to quarter. basis to limited. of was to XX.X% marketing margin Combined $XX.X prior communities the representing as in points. compared XXX over of advertising primarily improvement the together of

and to administrative improvement first related primarily $XX.X in from X.X% in totaled General X.X% year. revenue was sequential or of operating of the realized XXX leverage expenses revenue. point compared this quarter the increase million The basis to

with flat for remain G&A expect on in potential half the the relatively additional We of operating generating year, leverage to volume. dependent second the dollars

time, half to we communities expect leads same for advertising sale. additional we openings revenue turn a of as percentage and becomes drive support existing the more increase At inventory community spend up expenses selling as to the second to as available in

revenue of range result, XX.X%. between our a we're and SG&A XX.X% maintaining As for as a full year expectation to percentage

Pretax second the income $XX.X net was million quarter or for of XX.X% revenue.

the Our to federal mix same increase effective our year. year in due compared and expect currently to energy-efficient full the credits. XX% will shift to was between We last rate home effective in XX.X% quarter higher and was tax XX%. The rate fewer tax that rate primarily XX.X% range geographies tax tax

and $X.XX was $XX.X reported $X.XX Our diluted per share basic or income net second per share. million quarter

XXX.X% Net X,XXX, up XXX.X% of period year. quarter orders were over of last orders over an the year. gross increase quarter were last second same X,XXX homes, Second the

valued million. our the cancellation period same those quarter $XXX.X backlog to at backlog XX.X% during X,XXX rental XX.X% were homes, XX, homes of last the Our June X% year. or consisted with contracts at XXX rate was to single-family in of Of And related total compared wholesale partners.

quarter. controlled owned X,XXX with our XX, XX% down portfolio development. raw decrease owned, and of position. Of lots, a those owned XX,XXX Of those and or our under consisted of a X,XXX our At were land the Of XX,XXX completed were year-over-year homes Turning progress finished remaining lots. XX.X% in and sequentially. homes, lots, development prior including owned year-over-year X,XXX XX% of lots, and the lots active approximately from X.X% or information vacant lots, XX,XXX June our land X.X% decrease were of XX,XXX were land to were in slightly centers,

ramped we demand. sequentially, an During started of quarter a up the We on of XX.X% decrease at XX,XXX year-over-year, meet X.X% to sequentially. controlled increase construction end, XX.X% an with quarter, homes, of lots as X,XXX we increase construction

turn capital position. Josh I'll to call that, over of With our discussion for a the

Josh Fattor

Thank Charles. you,

over June notes of of outstanding on drawn XX, our million had $XXX.X $X billion credit including payable As we just facility.

stockholders' of XX% Our our our million debt-to-capital under over marked This $XXX.X debt-to-capital XX.X%. quarter ratio and $XX.XX, an Total our $X.X billion per liquidity net year. was last on ratio $XX.X third share delevering. increase the book hand At credit equity was XX, same facility. million, available $XXX.X period million of was our including consecutive of XX.X%, of our was June capacity was and cash value

turn the back call With Eric. that, to over I'll

Eric Lipar

all positioned and recent profitability Demand great a we're the delivered driving second long-term for shareholders. of growth, our we Thanks, XXXX. targets continuing as value for the our well has Josh. In and our momentum achieve of positive, year remain summary, to on improving and entering we significant focus quarter, created half create to performance trends

in in and our expect range our our X,XXX price to average year-end range decrease that selling sales the raising backlog year-to-date, a homes. closing performance to $XXX,XXX. Based prices year selling $XXX,XXX average the we're between current on in will continue quarter, momentum continued we and Despite second guidance between activity, and full X,XXX

our with new an in active in count add to additional expect in XXXX community as expand at We growth XXX continue XX% we communities to our ones. XX% and be markets in existing to presence XXX year-end and to

to those training first markets fourth our hire new that Utah state from the City. for in from new quarter. our One expect sales to welcomed recently team corporate office report Lake of our new We closings and is Salt

in increasing of to the quarter. additional gross margins expect margin improvement an XXX basis focused on deliver points third and We're

to our XX.X% full year adjusted XX%. to progress to and margin our to gross XX% margin Given guidance XX.X% we're to date, gross raising

LGI my around the expressing by conclude appreciation for the I'll country. teams Homes

made on your Your and possible. customers. and for affordability intense to great increasing enhancing quarter continued last performance profitability to our our you company our commitment Thank focus

call the open questions. now We'll for

Operator

comes line question Seaport. Zinner first of the Ken from with Our Instructions] [Operator

Unidentified Analyst

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Operator

you. hear can We Please proceed.

Unidentified Analyst

Great.

to to starting get are be how just of of to into But you communities then my going ramp? your So is target assume going I percent new talk looking year, XX% or a based are many year-end And big count can market. be those question to that's communities, the community range. to picture, sense XX% what on next a

you're be management. you in So are you currently? in many in today, if not to that going you're Operator, hearing how

Operator

is and hearing I you. operator This Yes. am

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Operator

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Eric Lipar

Can you hear me now.

Unidentified Analyst

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Eric Lipar

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Eric Lipar

your Yes, the [indiscernible] I Difficulty] end question at so [Technical heard

Unidentified Analyst

or it You with to -- reset the operator want

Eric Lipar

Ken, hear can you me now?

Unidentified Analyst

of I you. hear about X

Operator

the stay meeting. in Please

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Unidentified Analyst

Hello, everybody.

Eric Lipar

back. Welcome

Unidentified Analyst

to state okay? question. go to can I going my Is hear I'm you. that

Eric Lipar

ahead. Go

Unidentified Analyst

the Of you're be growth XX% And in. are those XX% markets to a in to many of that year. quarter next really Is how community fourth that year-over-year? XX% then new going

if to you're year? an you're in going be Y X So today, next

Eric Lipar

Okay, We now. for got Ken. This and all apologize Great again Eric. is that believe the we've technical out difficulties. straightened question,

year XXX end QX have that we count having expect growth number market community we to Lake community lot closings of ending XXXX. be this have Salt and this loaded. expect The year. only is new a 'XX. that's up November to the year-end year's X XXX, to year this expect is end opening to So in XX% in and going and to of of count XXXX, new entering We're in The of closings by XX% be to next the December we back-end City, communities communities off we're of opening year

Unidentified Analyst

Great. related to And operations. just then

comments. something the of was about to I like level, that seasonality. And pricing that's industry-leading at wasn't margin, there's First, on vertical. wanted XXX the quarter, separate about margins it net tied since your if sequential a second start. margins think last year. start heard then you gross years clarify whatever to you you're self-developed sure ask strong to margins. gross X to your going in you certain confidence I Do statements cost I you've And level being returning Obviously, reductions bps. in absolutes if sell that high your is referring from is very owned there. were to land And about reason made I the

Eric Lipar

follow I'll gross Charles Yes. can Thanks, then margin Ken. take the question, up.

Sales on that in gross that's of XXX that's margin have already good margins, increase prices. high-cost we're points gross the gross and in backlog. margin, our and so the been on margin houses to construction QX XXX most increase of Also, primarily gross confident basis houses, positive. the high So cost from we've We've pushed have into basis QX through visibility got points backlog, really able driven strength and question, been our adjusted increase.

believe And historical in gross mentioned XX% XX% be or And of margins near will tier the getting owned range. then land. adjusted range, at things: that land. We we profit industry-leading we because as to X back own in top one, focused the we and profit do of that group. homebuilding development, our also well a to that lot as do the that as to lot And developer there certainly well you that. We to be on need we're of capturing a well. be need And as

Charles Merdian

Charles. is question. Ken, I can And starts the take this

about starts I would in ended the X,XXX So inventory. on that units describe quarter, right track with second as X,XXX in

in over in we when were of highlighted our I a we units prepared in progress, more work think it's what WIP. those remarks, little to weighted X,XXX --

looking looking and our we on coming inventory X indicator of what per and based now basis, the adjusted which successful out and that end making in a we're we're ramping the sure for orders looking complete focused on for. really units XX% kind just a months is community-by-community year, for is on monetizing on determined be XX% future were an we we're WIP, of normally, So basis then of current will inventory about starts that community back really up completed

Unidentified Analyst

year you here you’re last X process. you’ve as community you’re your my ramp to material as Glenn about the X, last in to you call that changed how cetera, communicate have was is in always of distinct this dynamic made think Ross months Great. count sales you’re Glen question those of And salespeople? well very lists. with – some that a talk next be or the production closing. using that your changes for is you a because could I the X meaningful et Clary, you the us personnel, doing How in way teach that builder Can sales

Eric Lipar

just Ken. July will call in so we new ramping opening additional what training Sure, sales Thanks October. communities XX Yes, hiring to We XX hired in to class last anticipate for we staff, sales off or our average, for be sales years. That new think our change much where process we continuing individuals came and customers that. then up that the thing – class. and XX are reps salespeople positive QX staff sales our up the training training well. about process to right I ramping the next leads X,XXX is thing sales as year great really be per need about our week. the now, great The And X,XXX the we’re over to listeners. XX All

a into to families home. or spent about calling dollars So every directly advertising us or acquire X,XXX we wanting lot of consumer, a X,XXX individuals get to week, new to LGI

So with there’s only the the demand no us. is they engage with calling, engage robust. customers. We cold customers There’s no soliciting after

to be, phone digital than lot coming now come lot rather there through a calls. used in of more e-mail follow-up channel of our more leads a or than than a digital follow-up, So XX%

So own in been. interest and home get your rental desire elevated, being rates affordability a years. desire has for that’s changed homeownership. situation ever on our that right is as but with more constrained of the little last strong been pricing It it’s bit thing over that’s and as for the is homeownership business. out Same into now XX a the Certainly, only

Operator

comes JP question Michael Our Bruno from of from Morgan. line the

Andrew Azzi

This in -- I wanted most and on prices magnitude that you remarks, maybe regionally is I wanted prepared that increase you believe price on communities. -- positively you mentioned to in of to were the the you ask Azzi where kind increase to that? Mike. I in of increased saw your about X Andrew able just for

Eric Lipar

Yes, Andrew, this start. is Eric. I can

that One would I yet. selling the inventory think been started we vast houses a we're communities. of generally, is I strong. prices majority say, has don't Also, We because in for haven't available are increasing, have sale. of demand our lot finished

So we're be on any make costs the sure to we taking risk out price need to increasing. increasing

affect increase, over closings which year. starting next of the starts our we're months end And or couple of costs over by house will X, seeing the to the our also and month last the

as we the just our increasing average margins margins to need maintain that So above prices to prices communities well increase are selling our to increase to as paces.

Andrew Azzi

next my are maybe is are guess level adjusting the do what these? I question incentives? current And how And And thinking how about compare sequentially? of you they

Eric Lipar

costs doing the incentives our doing and closing financing, incentive the most From Yes. peers We're and consumer. rates an mortgage getting around possible same low builders standpoint, down really as thing. as for are

every and commitments or down Xs. have rate on side of really or for X about we've started a forward paying been mortgage consistent we a Xs rates to the through driving the consistent But We these get us. engaged the on at fixed year. possible buying the end lowest been the discount rate year that's in sales. levels of weekend being least And for on behalf the since consistently plan the borrower really interest probably ago, into not that at to and rise point

Operator

question comes the next of of Research. The from Wolfe line Patterson Truman

Truman Patterson

if X,XXX and about fourth quarter taken intelligence if implies [indiscernible] have you I closings I'm your closings think no, guide, quarter. might your at over half the X,XXX in looking second units a the wondering back We're had backlog, both little and over third phone it artificial quarter

intentionally back of during some build kind Could driving that metrics quarter you help So curbing perhaps half to a just you seasonality. up what's understand some normal And guide? healthy pretty orders pipeline? were order spec us second the

Eric Lipar

and too get And further really, construction through Yes, the we're that things. closings the is selling out not further X around guidance we're just it a is of end we're One our comfortable with couple month, that year on increasing. and of maintain the to risk to number. cautious limit a costs but out,

We sales necessary have closings. decrease increase drive spend drives advertising the and to which that as we and leads,

our range in previous comfortable our low because we're of seeing to in guidance sales end really and one guide increase one, and guidance, the we're table. So the taking positivity off the of

increase going be thing that here closings, other end help year, in sales communities especially is overall that's company to bringing number of closings the net The of and we're before will to the and the overall additive a for out QX. the

Truman Patterson

can end there's count community due trying Very selling Got you risks you. heard of And into one of absorptions. hangups municipality than local with We've big kind pipeline kind the of 'XX. everything in will, associated there? risks where always Ken's of of understand and following out where you for might if understand approvals. the faster new community on if just to some transformer all I kind too issues up the healthy all But through growth year you trying questions. But, that the be where potential tight the pop many to right aren't there up. of have see to expected openings. supply, of now, Or understand

Eric Lipar

going construction We've either them and count, very community get open a line it's with the the across we year's for great across under sales, dealing been the recorded, challenges communities electrical developments here question, houses getting Truman. what complete, or be still call to are as Platts transformers all are far Yes, are under issue. development as development finish an soon. those construction line. This finish

of risk on and the built development end the count, construction our risk, that's we there's of a guidance. think So community through which think I more we've sales any into timing don't year

to them form vast count of And that already to or owned. are are all of are the of development, lot then are The all going community next a under of next completion. those communities year, be nearing of them some majority those the added year,

timing is say I risk annual timing there wouldn't that. So to quarter-to-quarter, risk there's some but

year The are other next thing to community positive finished about opportunities. is lot that's see starting growth count we some

approved XXXX our XX committee will days that in didn't about we have We know lot have deals through multiple that acquisitions finished ago. closings

and be community So opportunities, we through say shovel-ready count count 'XX. to which community additive will in 'XX to drive I'll what see more both development lots and are starting opportunities to is finished

Operator

Our comes from Reichardt next Carl BTIG. line of from question the

Our Wedbush. McCanless next Jay question of line comes from the from

Jay McCanless

Can you hear me?

Eric Lipar

Jay, Yes, ahead. go

Jay McCanless

All Okay. right. Perfect.

of I if have for always just So you the are at I stated the conservatism? seems I below at why of sixth base to from think, guys you much conservative, expect because timing rest year, would is you but the stayed homebuilding the XXX business, the guys? be, you going mean even pretty guys and this top I we to than are or come say, you understand either a guidance, the more at conservative communities end what

Eric Lipar

Yes. Obviously, Jay, to of couple to we're on we're report a here things. July. One we're X. August going -- for is sitting going

days to XXX over our closings next were going X.XX July communities. So out will with X.XX that to active come few the

rest community that's on keeps high month the year is at using did count. So to And community of above X. X.X It's do about month more the end per math end, the to is depending X.X the July. us what X.X we that of you're the high for per midpoint for the through the X.X

sales that now they be to proven. as are even as means would in or good So have

as community and believe of to that to well below we above fixed if and or X.XX we're especially to thinking be And I affordable anything kind to year, rates then to of the below sales be rest math strong from the do this of us. So tailwind really X that about the least at here. very that full that's year think in coming of we would doing. to the we the count. play was the offering But gets X.X, the end X, an payment year. clear our through July, range. is what interest question XX-year at in you're a It's midpoint good and that how and in customers. a end a the That We're the means high off closings as X the rate for expect or X.X headwind. of is X.X to thought be business would not rises And going factor

Jay McCanless

them then just you you makes And and you be All the ahead when forward delivered type right. taking started risk more think about homes That talk selling for those a minute what today you're they'd homes, you those on if could sales? of are that sense. when

Eric Lipar

Yes.

limited States some certainly, have across And yet. communities, strong. in sales haven't We markets were that are we started that United that houses selling very

We August, are the close we're this permits point permits getting still to we the that where in in or stage. pending most hand across in would start selling In markets houses country, houses can year.

So not -- I that don't believe It's we contract have a for the XXXX closing. across a single focused scheduled XXXX. house really nation on under is

Jay McCanless

could move I then think prepared comments a little -- more. prices And if about you just to touch you lumber in talked your know you up. starting I

maybe Just lumber of you guys bottom? the much I expect guess that? prices And off from come for impact we margin when should how the

Charles Merdian

job to we Charles, is Eric's But about We're margins don't overall in comments because where that a gets to we're to operations just our of factoring in, impact costs This normal gross pricing, to expect slight kind Jay. seeing increase. a really have to Yes. lumber. think good of movement back I of mode expect we it it think we doing

continue in so that's nominal expect increases. gross and X% guidance we'll our margin it of anywhere then maintain prices So to over make from we increases margins. X.X% to $X,XXX we expect that right $X,XXX don't last can factored our sure into adjust range seeing now, months. -- We lumber to to kind of in I prices ramp and that if would think monitor But accordingly the that We're up sales couple to really heavily.

Operator

from next Alex the of of line Our Housing comes Center. question Barron Research

Alex Barron

rental was understood rates. you, I I of first as I and form primary current bit believe those like I that. stuff more a when at your imagine buyers to up sending are mailers marketing, it met communities challenged interest

versus to extent stuff to still through digital clients you that. shift So marketing strategies means and to doing had I'm that guys like are your finding more have you wondering what

that. If you could talk about

Eric Lipar

form changed, did question. of Obviously, in hasn't ago XX but when Yes, the to that reach Alex, digital marketing Eric. marketing is started. we changed. this consumer years a the world strategy Certainly, we more when we Great has live

social a drag, We customer customer that percentage still too. not digital lot customer we the is to hasn't want consumer to and their still looking That But spend. are of home changed. we're percentage get marketing customer marketing or whatever is Zillow, out first paying search today, to whether as it still used some used be to to media overall a or The customer than hitting market the That but more it and be. that digital is or someone the own. that's is closing a address their doing into of that lower means we change. selling marketing change that has and probably and And buy of home a currently your rents, situation, get homes the that with are

Alex Barron

you rate is driving are the terms buy-downs Or be And edge? in the of finding your, you get helping customers guess, to what's I guys main Got incentives, incentive? what it. over

Eric Lipar

Yes. for is. challenge It's is qualifying the the the what mortgage

have very more is challenging qualify mortgage important payment So be. it that to to obviously a monthly is And used for mortgage. the the have and for income to qualifying than or

by supply I market. that's some of offset think lack of the in

money really leads. is offset to ago neighborhoods more most strong that can few growth a the good But advertising of elevated compared years job today qualified we on make money to in to more at by growth. so of drive all payment vastly and spend and customer has more the Some affordable solid was the the wage end day, our

the focusing of what more is finish the talked driven one but really on we're affordable the we by Q&A, homes. things the haven't doing, of plans. in footage. the about script part of Also, in That's That's primarily not and square big a

payment sales brings and a to our way the to working. which plans price, as we've rates, introduce square down in even of lot a at monthly been interest smaller down average bring the is So the footage elevated communities, able that

Alex Barron

wide And something XX-foot to in XX buy smaller, terms interesting, lots, lots also lots in of are thought feet that that, develop turn you was south or are or like -- which I having of

Eric Lipar

case, Generally not the Alex.

the communities. nothing think has developing of In development our history we develop of on which I a our side. lots, changed sell lot really

We a are before and it XX smaller square consideration of the communities size. that. always just or same taking developed as the the year months to we've houses But size dense to side. homes possible. on consideration affordable these over as footprint. as taking or But as possible we're lot a on, into on X development that We're the lot the planned building is predominantly making always the last closing XX we're and selling that But and footage

Alex Barron

it. once, I just the there ask are Is is it going? besides could pretty your where a these Or all that which And market. new if you are spread guys concentration evenly throughout more X on Got is X Utah markets? the any people training salespeople

Eric Lipar

on coming and in looked States by across question our at the new California a focus as we really communities we before the preparing, markets. where that Texas, that in deeper United coming they're Florida, we percentages the existing going they're Carolinas is call thought in saying markets. are bigger the where And on the I is it coming these would in Well, made generalize all

Alex Barron

or sell others of existing salespeople to not communities? more meant joining there these replacing new most Is So new communities? are

Eric Lipar

sales and and of we salespeople of predominant our leads not well coming turnover the good in. lot doing number We're in Everyone are is commissions hire. a having really Yes, Correct. force. making

us up hiring to communities. are people open the new these primarily So

Operator

showing time, further I questions. this not At any am

Eric Lipar

call and today's interest on LGI a your continued Homes. great participating afternoon. for everyone, Thanks, in right. Have All

Operator

participating. today's Thank call. for conference you concludes This

disconnect. may You now

LGI Homes (LGIH) 1 Aug 232023 Q2 Earnings call transcript