LGI Homes

LGI Homes
Traded as NASDAQ: LGIH[1]
Industry Construction
Founded 2002
Headquarters The Woodlands, Texas, U.S.
Key people
 Thomas Lipar, Founder
Eric Lipar, CEO
Mike Snider, President
Revenue $383 million (2014)
Number of employees
 604[2]
Website lgihomes.com

LGI Homes 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 15th largest home builder in the United States.[3] 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.[4] The company began building houses in the Houston area in 2003.[5]

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.[3] LGI Homes closed 1,617 homes in 2013 and 3,404 in 2015.

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%.[6] 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.[7]

History

LGI Homes was founded in 2003 in The Woodlands, Texas.

Corporate culture

LGI Homes focuses on entry-level housing in the vicinity of major metropolitan areas. Its primary customer is the first-time homebuyer.[8] 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.[9]

As of September 2015, LGI Homes holds an A+ rating with the Better Business Bureau.[10]

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.[11] The company's growth slowed in 2009, when LGI Homes experienced a 9% drop in home sales, year-over-year.[12]

According to LGI Homes CEO Eric Lipar, the company plans to use the $90 million they raised to grow their company, with plans to expand in Texas markets.[13]

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

In 2010, LGI Homes broke its partnership with Interlinc Mortgage Inc., which began operating in 2006.[14][15]

See also

References

  1. ↑ "LGI HOMES, INC. (LGIH) IPO". NASDAQ. Retrieved 30 May 2015.
  2. ↑ 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.
  3. 1 2 "2015 Builder Magazine "Builder 100"". builderonline.com. The Builder. Retrieved 8 May 2015.
  4. ↑ "Affordable New Homes from LGI Homes are Coming to Central Florida". LGI Homes. July 10, 2012. Retrieved 26 June 2013.
  5. ↑ "About LGI Development". lgidevelopment.com. LGI Development. Retrieved 26 June 2013.
  6. ↑ Mantell, Ruth (7 November 2013). "The Wall Street Journal's Market Watch". Retrieved 24 February 2015.
  7. ↑ Zucker, Shaina (8 November 2013). "LGI Homes CEO has big plans for $90M raise". Houston Business Journal. Retrieved 24 February 2015.
  8. ↑ "Refuse to Participate in the Housing Slow-Down", Builder Radio interview with company CEO Eric Lipar, 2008.
  9. ↑ "Exception to the Rule", Builder Magazine, March, 2009.
  10. ↑ "BBB Business Review - LGI Homes". bbb.org. Better Business Bureau. Retrieved 26 June 2013.
  11. ↑ Dawson, Jennifer (April 4, 2010). "LGI Homes, GoldenTree Insite targets dirt-cheap lots". Houston Business Journal. Retrieved 26 June 2013.
  12. ↑ "LGI Homes" from the Builder Magazine 2009 "Builder 100".
  13. ↑ Zucker, Shaina. "LGI Homes CEO expects continued expansion after IPO". Houston Business Journal. American City Journals. Retrieved 17 December 2013.
  14. ↑ "InterLinc Mortgage" from LGIDevelopment.com
  15. ↑ "About InterLinc" from InterlincMortgage.com
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