Tri Pointe Homes, Inc. (the “Company”) (NYSE:TPH) today announced
results for the third quarter ended September 30, 2021.
“Tri Pointe Homes generated a significant year-over-year
increase in profitability in the third quarter of 2021, driven by
strong revenue growth and margin expansion,” said Doug Bauer, Chief
Executive Officer of Tri Pointe Homes. “Our teams did an excellent
job navigating the supply chain issues that persist in our
industry, enabling us to post a 25% year-over-year increase in
deliveries. With the strong pricing power we have experienced this
year, our homebuilding gross margin was 26.3% for the quarter,
which is a record for our company. The combination of increased
deliveries and greater margins resulted in net income of $133.2
million for the quarter, or $1.17 per diluted share, representing
year-over-year growth of 69% and 92%, respectively.”
Mr. Bauer continued, “Our return on average tangible equity was
20.8%* on a trailing twelve-month basis following our third quarter
results, representing a 650-basis-point improvement over the same
period last year. Our steadily improving return profile has been
driven in large part by several strategic initiatives we have
implemented, which include better asset turns, a more land-light
strategy, consistent share repurchases, the maturation of our
early-stage divisions and enhanced operational and process
improvements. We have been extremely pleased with the way these
initiatives have led to meaningful improvements to our return on
average tangible equity and believe the strategic changes we have
made will continue to benefit our stockholders.”
Mr. Bauer concluded, “With a robust backlog, a healthy demand
outlook and a strong balance sheet, Tri Pointe Homes is poised to
finish 2021 on a high note and carry that momentum into 2022. We
believe a number of the demand drivers that are currently in place
should persist for the foreseeable future, creating an excellent
operating environment for our company. As a result, we are
extremely optimistic about the future of Tri Pointe Homes.”
Results and Operational Data for Third
Quarter 2021 and Comparisons to Third Quarter 2020
- Net income was
$133.2 million, or $1.17 per diluted share, compared to $78.7
million, or $0.61 per diluted share.
- Home sales revenue
of $1.0 billion compared to $826.0 million, an increase of 25%
- New home deliveries
of 1,632 homes compared to 1,303 homes, an increase of 25%
- Average sales price
of homes delivered of $630,000 compared to $634,000, a decrease of
1%
- Homebuilding gross
margin percentage of 26.3% compared to 22.1%, an increase of 420
basis points
- Excluding interest
and impairments and lot option abandonments, adjusted homebuilding
gross margin percentage was 28.8%**
- SG&A expense as
a percentage of homes sales revenue of 9.6% compared to 9.8%, a
decrease of 20 basis points
- Net new home orders
of 1,349 compared to 1,933, a decrease of 30%
- Active selling
communities averaged 109.0 compared to 134.0, a decrease of 19%
- Net new home orders
per average selling community were 12.4 orders (4.1 monthly)
compared to 14.4 orders (4.8 monthly)
- Cancellation rate
of 9% in each period
- Backlog units at
quarter end of 3,619 homes compared to 3,188, an increase of 14%
- Dollar value of
backlog at quarter end of $2.4 billion compared to $2.1 billion, an
increase of 17%
- Average sales price
of homes in backlog at quarter end of $671,000 compared to
$648,000, an increase of 4%
- Ratios of
debt-to-capital and net debt-to-net capital of 36.3% and 24.3%**,
respectively, as of September 30, 2021
- Repurchased
2,974,328 shares of common stock at a weighted average price per
share of $21.93 for an aggregate dollar amount of $65.2 million in
the three months ended September 30, 2021
- Ended the third
quarter of 2021 with total liquidity of $1.2 billion, including
cash and cash equivalents of $587.4 million and $589.9 million of
availability under the Company’s unsecured revolving credit
facility
* |
Return on average tangible equity is calculated as net income for
the trailing twelve months divided by average stockholders’ equity
less goodwill and other intangible assets for the trailing five
quarters |
** |
See “Reconciliation of Non-GAAP Financial Measures” |
“We continued to see excellent demand for our homes during the
third quarter of 2021, as evidenced by our sales pace of 4.1 orders
per community per month,” said Tri Pointe Homes President and Chief
Operating Officer Tom Mitchell. “The order activity was broad-based
both in terms of geography and price point, a sign that there is
wide-ranging appeal for our premium brand and innovative new home
designs. We intend to capitalize on this continued demand by
opening over 100 new communities through the next five quarters and
expect to end 2022 with approximately 40% more active communities
than the previous year. We are excited about our growth prospects
in the coming quarters and believe we are in a great position to
benefit from the strong housing fundamentals that continue to drive
new home demand.”
Outlook
For the full year, the Company expects to open approximately 70
new communities and end the year with between 110 and 115 active
selling communities. In addition, the Company anticipates
delivering between 6,000 and 6,300 homes at an average sales price
between $635,000 and $640,000. The Company expects homebuilding
gross margin percentage to be in the range of 24.5% to 25.0% for
the full year and anticipates its SG&A expense as a percentage
of home sales revenue will be in the range of 9.8% to 10.2%.
Finally, the Company expects its effective tax rate for the full
year to be approximately 25%.
Earnings Conference Call
The Company will host a conference call via live webcast for
investors and other interested parties beginning at 10:00 a.m.
Eastern Time on Thursday, October 21, 2021. The
call will be hosted by Doug Bauer, Chief Executive Officer, Tom
Mitchell, President and Chief Operating Officer, and Glenn Keeler,
Chief Financial Officer. Interested parties can listen to the call
live and view the related slides on the Internet under the Events
& Presentations heading in the Investors section of the
Company’s website at presentation slides on the internet through
the Investors section of the Company’s website at
www.TriPointeHomes.com. Listeners should go to the website at least
fifteen minutes prior to the call to download and install any
necessary audio software. The call can also be accessed toll free
at (877) 407-3982, or (201) 493-6780 for international
participants. Participants should ask for the Tri Pointe Homes
Third Quarter 2021 Earnings Conference Call. Those dialing in
should do so at least ten minutes prior to the start of the call. A
replay of the call will be available for two weeks following the
call toll free at (844) 512-2921, or (412) 317-6671 for
international participants, using the reference number 13723766. An
archive of the webcast will also be available on the Company’s
website for a limited time.
About Tri Pointe Homes, Inc.
One of the largest homebuilders in the U.S., Tri Pointe Homes®
(NYSE: TPH) is a publicly traded company and a recognized leader in
customer experience, innovative design, and environmentally
responsible business practices. The company builds premium homes
and communities in 10 states, with deep ties to the communities it
serves—some for as long as a century. Tri Pointe Homes combines the
financial resources, technology platforms and proven leadership of
a national organization with the regional insights, longstanding
community connections and agility of empowered local teams. Tri
Pointe has won multiple Builder of the Year awards, most recently
in 2019, and made Fortune magazine’s 2017 100 Fastest-Growing
Companies list. Named one of the Best Places to Work by the Orange
County Business Journal for four consecutive years, Tri Pointe
Homes also became a Great Place to Work-CertifiedTM company in
2021. For more information, please visit TriPointeHomes.com.
Forward-Looking
Statements
Various statements contained in this press release, including
those that express a belief, expectation or intention, as well as
those that are not statements of historical fact, are
forward-looking statements. These forward-looking statements may
include, but are not limited to, statements regarding our strategy,
projections and estimates concerning the timing and success of
specific projects and our future production, land and lot sales,
operational and financial results, including our estimates for
growth, financial condition, sales prices, prospects, and capital
spending. Forward-looking statements that are included in this
press release are generally accompanied by words such as
“anticipate,” “believe,” “could,” “estimate,” “expect,” “future,”
“goal,” “guidance,” “intend,” “likely,” “may,” “might,” “outlook,”
“plan,” “potential,” “predict,” “project,” “should,” “strategy,”
“target,” “will,” “would,” or other words that convey future events
or outcomes. The forward-looking statements in this press release
speak only as of the date of this press release, and we disclaim
any obligation to update these statements unless required by law,
and we caution you not to rely on them unduly. These
forward-looking statements are inherently subject to significant
business, economic, competitive, regulatory and other risks,
contingencies and uncertainties, most of which are difficult to
predict and many of which are beyond our control. The following
factors, among others, may cause our actual results, performance or
achievements to differ materially from any future results,
performance or achievements expressed or implied by these
forward-looking statements: the effects of the ongoing COVID-19
pandemic, which are highly uncertain and subject to rapid change,
cannot be predicted and will depend upon future developments,
including the emergence and spread of new strains or variants of
COVID-19, the severity and the duration of the outbreak, the
duration of existing and future social distancing and
shelter-in-place orders, further mitigation strategies taken by
applicable government authorities, the availability and acceptance
of effective vaccines, adequate testing and treatments and the
prevalence of widespread immunity to COVID-19; the impacts on our
supply chain, the health of our employees, service providers and
trade partners, and the reactions of U.S. and global markets and
their effects on consumer confidence and spending; the effects of
general economic conditions, including employment rates, housing
starts, interest rate levels, availability of financing for home
mortgages and strength of the U.S. dollar; market demand for our
products, which is related to the strength of the various U.S.
business segments and U.S. and international economic conditions;
the availability of desirable and reasonably priced land and our
ability to control, purchase, hold and develop such parcels; access
to adequate capital on acceptable terms; geographic concentration
of our operations, particularly within California; levels of
competition; the successful execution of our internal performance
plans, including restructuring and cost reduction initiatives; the
prices and availability of supply chain inputs, including raw
materials, and labor; oil and other energy prices; the effects of
U.S. trade policies, including the imposition of tariffs and duties
on homebuilding products and retaliatory measures taken by other
countries; the effects of weather, including the occurrence of
drought conditions in California; the risk of loss from
earthquakes, volcanoes, fires, floods, droughts, windstorms,
hurricanes, pest infestations and other natural disasters, and the
risk of delays, reduced consumer demand, and shortages and price
increases in labor or materials associated with such natural
disasters; the risk of loss from acts of war, terrorism, civil
unrest or outbreaks of contagious diseases, such as COVID-19;
transportation costs; federal and state tax policies; the effects
of land use, environment and other governmental laws and
regulations; legal proceedings or disputes and the adequacy of
reserves; risks relating to any unforeseen changes to or effects on
liabilities, future capital expenditures, revenues, expenses,
earnings, synergies, indebtedness, financial condition, losses and
future prospects; changes in accounting principles; risks related
to unauthorized access to our computer systems, theft of our
homebuyers’ confidential information or other forms of
cyber-attack; and additional factors discussed under the sections
captioned “Risk Factors” included in our annual and quarterly
reports filed with the Securities and Exchange Commission. The
foregoing list is not exhaustive. New risk factors may emerge from
time to time and it is not possible for management to predict all
such risk factors or to assess the impact of such risk factors on
our business.
Investor Relations Contact:
Drew Mackintosh, Mackintosh Investor
RelationsInvestorRelations@TriPointeHomes.com, 949-478-8696
Media Contact:
Carol Ruiz, cruiz@newgroundco.com, 310-437-0045
KEY OPERATIONS AND FINANCIAL
DATA (dollars in thousands) (unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2021 |
|
2020 |
|
Change |
|
% Change |
|
2021 |
|
2020 |
|
Change |
|
% Change |
Operating Data: |
(unaudited) |
Home sales revenue |
$ |
1,028,950 |
|
|
$ |
826,036 |
|
|
$ |
202,914 |
|
|
|
25 |
|
% |
|
$ |
2,754,932 |
|
|
$ |
2,187,816 |
|
|
$ |
567,116 |
|
|
|
26 |
|
% |
Homebuilding gross margin |
$ |
270,926 |
|
|
$ |
182,580 |
|
|
$ |
88,346 |
|
|
|
48 |
|
% |
|
$ |
690,337 |
|
|
$ |
470,044 |
|
|
$ |
220,293 |
|
|
|
47 |
|
% |
Homebuilding gross margin % |
26.3 |
% |
|
22.1 |
% |
|
4.2 |
|
% |
|
|
|
25.1 |
% |
|
21.5 |
% |
|
3.6 |
|
% |
|
|
Adjusted homebuilding gross margin %* |
28.8 |
% |
|
25.0 |
% |
|
3.8 |
|
% |
|
|
|
27.9 |
% |
|
24.4 |
% |
|
3.5 |
|
% |
|
|
SG&A expense |
$ |
98,365 |
|
|
$ |
81,037 |
|
|
$ |
17,328 |
|
|
|
21 |
|
% |
|
$ |
276,926 |
|
|
$ |
246,259 |
|
|
$ |
30,667 |
|
|
|
12 |
|
% |
SG&A expense as a % of home sales revenue |
9.6 |
% |
|
9.8 |
% |
|
(0.2 |
) |
% |
|
|
|
10.1 |
% |
|
11.3 |
% |
|
(1.2 |
) |
% |
|
|
Net income |
$ |
133,156 |
|
|
$ |
78,682 |
|
|
$ |
54,474 |
|
|
|
69 |
|
% |
|
$ |
321,827 |
|
|
$ |
167,093 |
|
|
$ |
154,734 |
|
|
|
93 |
|
% |
Adjusted EBITDA* |
$ |
215,880 |
|
|
$ |
140,792 |
|
|
$ |
75,088 |
|
|
|
53 |
|
% |
|
$ |
543,945 |
|
|
$ |
329,519 |
|
|
$ |
214,426 |
|
|
|
65 |
|
% |
Interest incurred |
$ |
24,280 |
|
|
$ |
20,063 |
|
|
$ |
4,217 |
|
|
|
21 |
|
% |
|
$ |
68,017 |
|
|
$ |
62,670 |
|
|
$ |
5,347 |
|
|
|
9 |
|
% |
Interest in cost of home sales |
$ |
25,656 |
|
|
$ |
23,495 |
|
|
$ |
2,161 |
|
|
|
9 |
|
% |
|
$ |
77,185 |
|
|
$ |
62,118 |
|
|
$ |
15,067 |
|
|
|
24 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net new home orders |
1,349 |
|
|
1,933 |
|
|
(584 |
) |
|
|
(30 |
) |
% |
|
4,958 |
|
|
4,926 |
|
|
32 |
|
|
|
1 |
|
% |
New homes delivered |
1,632 |
|
|
1,303 |
|
|
329 |
|
|
|
25 |
|
% |
|
4,303 |
|
|
3,490 |
|
|
813 |
|
|
|
23 |
|
% |
Average sales price of homes delivered |
$ |
630 |
|
|
$ |
634 |
|
|
$ |
(4 |
) |
|
|
(1 |
) |
% |
|
$ |
640 |
|
|
$ |
627 |
|
|
$ |
13 |
|
|
|
2 |
|
% |
Cancellation rate |
9 |
% |
|
9 |
% |
|
0 |
|
% |
|
|
|
7 |
% |
|
14 |
% |
|
(7 |
) |
% |
|
|
Average selling communities |
109.0 |
|
|
134.0 |
|
|
(25.0 |
) |
|
|
(19 |
) |
% |
|
112.1 |
|
|
138.8 |
|
|
(26.7 |
) |
|
|
(19 |
) |
% |
Selling communities at end of period |
109 |
|
|
126 |
|
|
(17 |
) |
|
|
(13 |
) |
% |
|
|
|
|
|
|
|
|
Backlog (estimated dollar value) |
$ |
2,428,412 |
|
|
$ |
2,067,366 |
|
|
$ |
361,046 |
|
|
|
17 |
|
% |
|
|
|
|
|
|
|
|
Backlog (homes) |
3,619 |
|
|
3,188 |
|
|
431 |
|
|
|
14 |
|
% |
|
|
|
|
|
|
|
|
Average sales price in backlog |
$ |
671 |
|
|
$ |
648 |
|
|
$ |
23 |
|
|
|
4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
Balance Sheet Data: |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
587,405 |
|
|
$ |
621,295 |
|
|
$ |
(33,890 |
) |
|
|
(5 |
) |
% |
|
|
|
|
|
|
|
|
Real estate inventories |
$ |
3,136,477 |
|
|
$ |
2,910,142 |
|
|
$ |
226,335 |
|
|
|
8 |
|
% |
|
|
|
|
|
|
|
|
Lots owned or controlled |
38,777 |
|
|
35,641 |
|
|
3,136 |
|
|
|
9 |
|
% |
|
|
|
|
|
|
|
|
Homes under construction (1) |
4,097 |
|
|
3,044 |
|
|
1,053 |
|
|
|
35 |
|
% |
|
|
|
|
|
|
|
|
Homes completed, unsold |
18 |
|
|
68 |
|
|
(50 |
) |
|
|
(74 |
) |
% |
|
|
|
|
|
|
|
|
Debt |
$ |
1,343,782 |
|
|
$ |
1,343,001 |
|
|
$ |
781 |
|
|
|
0 |
|
% |
|
|
|
|
|
|
|
|
Stockholders’ equity |
$ |
2,354,136 |
|
|
$ |
2,232,537 |
|
|
$ |
121,599 |
|
|
|
5 |
|
% |
|
|
|
|
|
|
|
|
Book capitalization |
$ |
3,697,918 |
|
|
$ |
3,575,538 |
|
|
$ |
122,380 |
|
|
|
3 |
|
% |
|
|
|
|
|
|
|
|
Ratio of debt-to-capital |
36.3 |
% |
|
37.6 |
% |
|
(1.3 |
) |
% |
|
|
|
|
|
|
|
|
|
|
Ratio of net debt-to-net capital* |
24.3 |
% |
|
24.4 |
% |
|
(0.1 |
) |
% |
|
|
|
|
|
|
|
|
|
|
(1) |
Homes under construction included 83 and 86 models at
September 30, 2021 and December 31, 2020,
respectively. |
* |
See “Reconciliation of Non-GAAP Financial Measures” |
CONSOLIDATED BALANCE SHEETS (in
thousands, except share and per share amounts)
|
September 30, |
|
December 31, |
|
2021 |
|
2020 |
Assets |
(unaudited) |
|
|
Cash and cash equivalents |
$ |
587,405 |
|
|
$ |
621,295 |
|
Receivables |
86,926 |
|
|
63,551 |
|
Real estate inventories |
3,136,477 |
|
|
2,910,142 |
|
Investments in unconsolidated entities |
75,046 |
|
|
75,056 |
|
Goodwill and other intangible assets, net |
156,603 |
|
|
158,529 |
|
Deferred tax assets, net |
43,618 |
|
|
47,525 |
|
Other assets |
147,610 |
|
|
145,882 |
|
Total assets |
$ |
4,233,685 |
|
|
$ |
4,021,980 |
|
|
|
|
|
Liabilities |
|
|
|
Accounts payable |
$ |
119,699 |
|
|
$ |
79,690 |
|
Accrued expenses and other liabilities |
416,056 |
|
|
366,740 |
|
Loans payable |
257,381 |
|
|
258,979 |
|
Senior notes |
1,086,401 |
|
|
1,084,022 |
|
Total liabilities |
1,879,537 |
|
|
1,789,431 |
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
Equity |
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no
shares issued and outstanding as of September 30, 2021 and December
31, 2020, respectively |
— |
|
|
— |
|
Common stock, $0.01 par value, 500,000,000 shares authorized;
112,386,496 and 121,882,778 shares issued and outstanding at
September 30, 2021 and December 31, 2020, respectively |
1,124 |
|
|
1,219 |
|
Additional paid-in capital |
145,004 |
|
|
345,137 |
|
Retained earnings |
2,208,008 |
|
|
1,886,181 |
|
Total stockholders’ equity |
2,354,136 |
|
|
2,232,537 |
|
Noncontrolling interests |
12 |
|
|
12 |
|
Total equity |
2,354,148 |
|
|
2,232,549 |
|
Total liabilities and equity |
$ |
4,233,685 |
|
|
$ |
4,021,980 |
|
CONSOLIDATED STATEMENT OF
OPERATIONS (in thousands, except share and per share
amounts) (unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Homebuilding: |
|
|
|
|
|
|
|
Home sales revenue |
$ |
1,028,950 |
|
|
|
$ |
826,036 |
|
|
|
$ |
2,754,932 |
|
|
|
$ |
2,187,816 |
|
|
Land and lot sales revenue |
581 |
|
|
|
3,242 |
|
|
|
7,520 |
|
|
|
3,462 |
|
|
Other operations revenue |
646 |
|
|
|
634 |
|
|
|
1,969 |
|
|
|
1,900 |
|
|
Total revenues |
1,030,177 |
|
|
|
829,912 |
|
|
|
2,764,421 |
|
|
|
2,193,178 |
|
|
Cost of home sales |
758,024 |
|
|
|
643,456 |
|
|
|
2,064,595 |
|
|
|
1,717,772 |
|
|
Cost of land and lot sales |
891 |
|
|
|
3,214 |
|
|
|
5,918 |
|
|
|
3,790 |
|
|
Other operations expense |
801 |
|
|
|
624 |
|
|
|
2,111 |
|
|
|
1,872 |
|
|
Sales and marketing |
44,875 |
|
|
|
44,714 |
|
|
|
130,824 |
|
|
|
132,545 |
|
|
General and administrative |
53,490 |
|
|
|
36,323 |
|
|
|
146,102 |
|
|
|
113,714 |
|
|
Restructuring charges |
— |
|
|
|
54 |
|
|
|
— |
|
|
|
5,603 |
|
|
Homebuilding income from operations |
172,096 |
|
|
|
101,527 |
|
|
|
414,871 |
|
|
|
217,882 |
|
|
Equity in (loss) income of unconsolidated entities |
(43 |
) |
|
|
106 |
|
|
|
(72 |
) |
|
|
67 |
|
|
Other income (loss), net |
171 |
|
|
|
(3,120 |
) |
|
|
428 |
|
|
|
(9,075 |
) |
|
Homebuilding income before income taxes |
172,224 |
|
|
|
98,513 |
|
|
|
415,227 |
|
|
|
208,874 |
|
|
Financial
Services: |
|
|
|
|
|
|
|
Revenues |
3,016 |
|
|
|
2,552 |
|
|
|
7,802 |
|
|
|
6,442 |
|
|
Expenses |
1,618 |
|
|
|
1,334 |
|
|
|
4,510 |
|
|
|
3,698 |
|
|
Equity in income of unconsolidated entities |
3,946 |
|
|
|
3,273 |
|
|
|
10,586 |
|
|
|
7,761 |
|
|
Financial services income before income taxes |
5,344 |
|
|
|
4,491 |
|
|
|
13,878 |
|
|
|
10,505 |
|
|
Income before income
taxes |
177,568 |
|
|
|
103,004 |
|
|
|
429,105 |
|
|
|
219,379 |
|
|
Provision for income taxes |
(44,412 |
) |
|
|
(24,322 |
) |
|
|
(107,278 |
) |
|
|
(52,286 |
) |
|
Net income |
$ |
133,156 |
|
|
|
$ |
78,682 |
|
|
|
$ |
321,827 |
|
|
|
$ |
167,093 |
|
|
Earnings per share |
|
|
|
|
|
|
|
Basic |
$ |
1.18 |
|
|
|
$ |
0.61 |
|
|
|
$ |
2.77 |
|
|
|
$ |
1.27 |
|
|
Diluted |
$ |
1.17 |
|
|
|
$ |
0.61 |
|
|
|
$ |
2.75 |
|
|
|
$ |
1.27 |
|
|
Weighted average shares
outstanding |
|
|
|
|
|
|
|
Basic |
112,781,663 |
|
|
|
128,941,901 |
|
|
|
116,296,265 |
|
|
|
131,190,301 |
|
|
Diluted |
113,782,251 |
|
|
|
129,515,114 |
|
|
|
117,188,893 |
|
|
|
131,672,652 |
|
|
MARKET DATA BY REPORTING SEGMENT &
STATE(dollars in thousands) (unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
NewHomesDelivered |
|
AverageSalesPrice |
|
NewHomesDelivered |
|
AverageSalesPrice |
|
NewHomesDelivered |
|
AverageSalesPrice |
|
NewHomesDelivered |
|
AverageSalesPrice |
Arizona |
187 |
|
|
$ |
685 |
|
|
170 |
|
|
$ |
559 |
|
|
570 |
|
|
$ |
667 |
|
|
475 |
|
|
$ |
534 |
|
California |
708 |
|
|
646 |
|
|
481 |
|
|
729 |
|
|
1,863 |
|
|
674 |
|
|
1,310 |
|
|
740 |
|
Nevada |
180 |
|
|
611 |
|
|
132 |
|
|
563 |
|
|
381 |
|
|
607 |
|
|
321 |
|
|
534 |
|
Washington |
76 |
|
|
983 |
|
|
78 |
|
|
927 |
|
|
223 |
|
|
984 |
|
|
170 |
|
|
897 |
|
West total |
1,151 |
|
|
669 |
|
|
861 |
|
|
686 |
|
|
3,037 |
|
|
687 |
|
|
2,276 |
|
|
679 |
|
Colorado |
55 |
|
|
589 |
|
|
47 |
|
|
625 |
|
|
154 |
|
|
584 |
|
|
166 |
|
|
593 |
|
Texas |
274 |
|
|
492 |
|
|
235 |
|
|
454 |
|
|
721 |
|
|
483 |
|
|
698 |
|
|
628 |
|
Central total |
329 |
|
|
508 |
|
|
282 |
|
|
482 |
|
|
875 |
|
|
501 |
|
|
864 |
|
|
489 |
|
Maryland |
73 |
|
|
565 |
|
|
98 |
|
|
578 |
|
|
203 |
|
|
561 |
|
|
228 |
|
|
567 |
|
North Carolina |
18 |
|
|
395 |
|
|
— |
|
|
— |
|
|
53 |
|
|
393 |
|
|
— |
|
|
— |
|
South Carolina |
7 |
|
|
362 |
|
|
— |
|
|
— |
|
|
11 |
|
|
334 |
|
|
— |
|
|
— |
|
Virginia |
54 |
|
|
749 |
|
|
62 |
|
|
684 |
|
|
124 |
|
|
737 |
|
|
122 |
|
|
736 |
|
East total |
152 |
|
|
601 |
|
|
160 |
|
|
619 |
|
|
391 |
|
|
588 |
|
|
350 |
|
|
626 |
|
Total |
1,632 |
|
|
$ |
630 |
|
|
1,303 |
|
|
$ |
634 |
|
|
4,303 |
|
|
$ |
640 |
|
|
3,490 |
|
|
$ |
627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
Arizona |
182 |
|
|
13.2 |
|
|
244 |
|
|
18.7 |
|
|
676 |
|
|
14.4 |
|
|
646 |
|
|
17.4 |
|
California |
545 |
|
|
38.3 |
|
|
895 |
|
|
45.2 |
|
|
1,865 |
|
|
38.9 |
|
|
2,157 |
|
|
51.1 |
|
Nevada |
133 |
|
|
10.2 |
|
|
145 |
|
|
15.5 |
|
|
568 |
|
|
11.1 |
|
|
413 |
|
|
15.3 |
|
Washington |
68 |
|
|
6.5 |
|
|
78 |
|
|
8.5 |
|
|
229 |
|
|
5.7 |
|
|
309 |
|
|
8.2 |
|
West total |
928 |
|
|
68.2 |
|
|
1,362 |
|
|
87.9 |
|
|
3,338 |
|
|
70.1 |
|
|
3,525 |
|
|
92.0 |
|
Colorado |
55 |
|
|
6.5 |
|
|
72 |
|
|
4.3 |
|
|
218 |
|
|
5.7 |
|
|
181 |
|
|
4.2 |
|
Texas |
238 |
|
|
21.5 |
|
|
318 |
|
|
30.5 |
|
|
945 |
|
|
22.6 |
|
|
757 |
|
|
30.3 |
|
Central total |
293 |
|
|
28.0 |
|
|
390 |
|
|
34.8 |
|
|
1,163 |
|
|
28.3 |
|
|
938 |
|
|
34.5 |
|
Maryland |
40 |
|
|
4.3 |
|
|
131 |
|
|
8.0 |
|
|
149 |
|
|
5.3 |
|
|
334 |
|
|
8.8 |
|
North Carolina |
25 |
|
|
1.5 |
|
|
— |
|
|
— |
|
|
91 |
|
|
1.6 |
|
|
— |
|
|
— |
|
South Carolina |
16 |
|
|
1.5 |
|
|
6 |
|
|
0.3 |
|
|
38 |
|
|
1.5 |
|
|
6 |
|
|
0.1 |
|
Virginia |
47 |
|
|
5.5 |
|
|
44 |
|
|
3.0 |
|
|
179 |
|
|
5.3 |
|
|
123 |
|
|
3.4 |
|
East total |
128 |
|
|
12.8 |
|
|
181 |
|
|
11.3 |
|
|
457 |
|
|
13.7 |
|
|
463 |
|
|
12.3 |
|
Total |
1,349 |
|
|
109.0 |
|
|
1,933 |
|
|
134.0 |
|
|
4,958 |
|
|
112.1 |
|
|
4,926 |
|
|
138.8 |
|
MARKET DATA BY REPORTING SEGMENT &
STATE, continued(dollars in thousands) (unaudited)
|
As of September 30, 2021 |
|
As of September 30, 2020 |
|
BacklogUnits |
|
BacklogDollarValue |
|
AverageSalesPrice |
|
BacklogUnits |
|
BacklogDollarValue |
|
AverageSalesPrice |
Arizona |
585 |
|
|
$ |
438,093 |
|
|
$ |
749 |
|
|
501 |
|
|
$ |
317,887 |
|
|
$ |
635 |
|
California |
1,260 |
|
|
843,994 |
|
|
670 |
|
|
1,399 |
|
|
941,768 |
|
|
673 |
|
Nevada |
323 |
|
|
226,035 |
|
|
700 |
|
|
229 |
|
|
148,899 |
|
|
650 |
|
Washington |
145 |
|
|
155,172 |
|
|
1,070 |
|
|
228 |
|
|
222,394 |
|
|
975 |
|
West total |
2,313 |
|
|
1,663,294 |
|
|
719 |
|
|
2,357 |
|
|
1,630,948 |
|
|
692 |
|
Colorado |
190 |
|
|
135,851 |
|
|
715 |
|
|
115 |
|
|
65,576 |
|
|
570 |
|
Texas |
722 |
|
|
364,537 |
|
|
505 |
|
|
404 |
|
|
184,507 |
|
|
457 |
|
Central total |
912 |
|
|
500,388 |
|
|
549 |
|
|
519 |
|
|
250,083 |
|
|
482 |
|
Maryland |
147 |
|
|
92,836 |
|
|
632 |
|
|
223 |
|
|
122,133 |
|
|
548 |
|
North Carolina |
50 |
|
|
23,170 |
|
|
463 |
|
|
— |
|
|
— |
|
|
— |
|
South Carolina |
30 |
|
|
11,188 |
|
|
373 |
|
|
6 |
|
|
1,851 |
|
|
309 |
|
Virginia |
167 |
|
|
137,536 |
|
|
824 |
|
|
83 |
|
|
62,351 |
|
|
751 |
|
East total |
394 |
|
|
264,730 |
|
|
672 |
|
|
312 |
|
|
186,335 |
|
|
597 |
|
Total |
3,619 |
|
|
$ |
2,428,412 |
|
|
$ |
671 |
|
|
3,188 |
|
|
$ |
2,067,366 |
|
|
$ |
648 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
Lots Owned or
Controlled: |
|
|
|
|
|
|
|
|
|
|
|
Arizona |
3,750 |
|
|
4,128 |
|
|
|
|
|
|
|
|
|
California |
14,690 |
|
|
15,040 |
|
|
|
|
|
|
|
|
|
Nevada |
2,304 |
|
|
2,639 |
|
|
|
|
|
|
|
|
|
Washington |
857 |
|
|
964 |
|
|
|
|
|
|
|
|
|
West total |
21,601 |
|
|
22,771 |
|
|
|
|
|
|
|
|
|
Colorado |
1,451 |
|
|
1,080 |
|
|
|
|
|
|
|
|
|
Texas |
11,068 |
|
|
6,985 |
|
|
|
|
|
|
|
|
|
Central total |
12,519 |
|
|
8,065 |
|
|
|
|
|
|
|
|
|
Maryland |
693 |
|
|
892 |
|
|
|
|
|
|
|
|
|
North Carolina |
2,924 |
|
|
2,808 |
|
|
|
|
|
|
|
|
|
South Carolina |
163 |
|
|
106 |
|
|
|
|
|
|
|
|
|
Virginia |
877 |
|
|
999 |
|
|
|
|
|
|
|
|
|
East total |
4,657 |
|
|
4,805 |
|
|
|
|
|
|
|
|
|
Total |
38,777 |
|
|
35,641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
Lots by Ownership
Type: |
|
|
|
|
|
|
|
|
|
|
|
Lots owned |
22,333 |
|
|
22,620 |
|
|
|
|
|
|
|
|
|
Lots controlled (1) |
16,444 |
|
|
13,021 |
|
|
|
|
|
|
|
|
|
Total |
38,777 |
|
|
35,641 |
|
|
|
|
|
|
|
|
|
(1) |
As of September 30, 2021 and December 31, 2020, lots
controlled included lots that were under land option contracts or
purchase contracts. As of September 30, 2021, lots controlled for
Central and East include 2,095 lots and 179 lots, respectively,
which represent our expected share of lots owned by our
unconsolidated land development joint ventures. |
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES (unaudited)
In this press release, we utilize certain financial measures
that are non-GAAP financial measures as defined by the Securities
and Exchange Commission. We present these measures because we
believe they and similar measures are useful to management and
investors in evaluating the Company’s operating performance and
financing structure. We also believe these measures facilitate the
comparison of our operating performance and financing structure
with other companies in our industry. Because these measures are
not calculated in accordance with Generally Accepted Accounting
Principles (“GAAP”), they may not be comparable to other similarly
titled measures of other companies and should not be considered in
isolation or as a substitute for, or superior to, financial
measures prepared in accordance with GAAP.
The following tables reconcile homebuilding gross margin
percentage, as reported and prepared in accordance with GAAP, to
the non-GAAP measure adjusted homebuilding gross margin percentage.
We believe this information is meaningful as it isolates the impact
that leverage has on homebuilding gross margin and permits
investors to make better comparisons with our competitors, who
adjust gross margins in a similar fashion.
|
Three Months Ended September 30, |
|
2021 |
|
% |
|
2020 |
|
% |
|
(dollars in thousands) |
Home sales revenue |
$ |
1,028,950 |
|
|
100.0 |
% |
|
$ |
826,036 |
|
|
100.0 |
% |
Cost of home sales |
758,024 |
|
|
73.7 |
% |
|
643,456 |
|
|
77.9 |
% |
Homebuilding gross margin |
270,926 |
|
|
26.3 |
% |
|
182,580 |
|
|
22.1 |
% |
Add: interest in cost of home sales |
25,656 |
|
|
2.5 |
% |
|
23,495 |
|
|
2.8 |
% |
Add: impairments and lot option abandonments |
268 |
|
|
0.0 |
% |
|
315 |
|
|
0.0 |
% |
Adjusted homebuilding gross
margin |
$ |
296,850 |
|
|
28.8 |
% |
|
$ |
206,390 |
|
|
25.0 |
% |
Homebuilding gross margin
percentage |
26.3 |
% |
|
|
|
22.1 |
% |
|
|
Adjusted homebuilding gross
margin percentage |
28.8 |
% |
|
|
|
25.0 |
% |
|
|
|
Nine Months Ended September 30, |
|
2021 |
|
% |
|
2020 |
|
% |
|
(dollars in thousands) |
Home sales revenue |
$ |
2,754,932 |
|
|
100.0 |
% |
|
$ |
2,187,816 |
|
|
100.0 |
% |
Cost of home sales |
2,064,595 |
|
|
74.9 |
% |
|
1,717,772 |
|
|
78.5 |
% |
Homebuilding gross margin |
690,337 |
|
|
25.1 |
% |
|
470,044 |
|
|
21.5 |
% |
Add: interest in cost of home sales |
77,185 |
|
|
2.8 |
% |
|
62,118 |
|
|
2.8 |
% |
Add: impairments and lot option abandonments |
713 |
|
|
0.0 |
% |
|
2,044 |
|
|
0.1 |
% |
Adjusted homebuilding gross
margin |
$ |
768,235 |
|
|
27.9 |
% |
|
$ |
534,206 |
|
|
24.4 |
% |
Homebuilding gross margin
percentage |
25.1 |
% |
|
|
|
21.5 |
% |
|
|
Adjusted homebuilding gross
margin percentage |
27.9 |
% |
|
|
|
24.4 |
% |
|
|
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES (continued)(unaudited)
The following table reconciles the Company’s ratio of
debt-to-capital to the non-GAAP ratio of net debt-to-net capital.
We believe that the ratio of net debt-to-net capital is a relevant
financial measure for management and investors to understand the
leverage employed in our operations and as an indicator of the
Company’s ability to obtain financing.
|
September 30, 2021 |
|
December 31, 2020 |
Loans payable |
$ |
257,381 |
|
|
|
$ |
258,979 |
|
|
Senior notes |
1,086,401 |
|
|
|
1,084,022 |
|
|
Total debt |
1,343,782 |
|
|
|
1,343,001 |
|
|
Stockholders’ equity |
2,354,136 |
|
|
|
2,232,537 |
|
|
Total capital |
$ |
3,697,918 |
|
|
|
$ |
3,575,538 |
|
|
Ratio of
debt-to-capital(1) |
36.3 |
|
% |
|
37.6 |
|
% |
|
|
|
|
Total debt |
$ |
1,343,782 |
|
|
|
$ |
1,343,001 |
|
|
Less: Cash and cash
equivalents |
(587,405 |
) |
|
|
(621,295 |
) |
|
Net debt |
756,377 |
|
|
|
721,706 |
|
|
Stockholders’ equity |
2,354,136 |
|
|
|
2,232,537 |
|
|
Net capital |
$ |
3,110,513 |
|
|
|
$ |
2,954,243 |
|
|
Ratio of net debt-to-net
capital(2) |
24.3 |
|
% |
|
24.4 |
|
% |
(1) |
The ratio of debt-to-capital is computed as the quotient obtained
by dividing total debt by the sum of total debt plus stockholders’
equity. |
(2) |
The ratio of net debt-to-net capital is computed as the quotient
obtained by dividing net debt (which is total debt less cash and
cash equivalents) by the sum of net debt plus stockholders’
equity. |
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES (continued)(unaudited)
The following table calculates the non-GAAP financial measures
of EBITDA and Adjusted EBITDA and reconciles those amounts to net
income, as reported and prepared in accordance with
GAAP. EBITDA means net income before (a) interest
expense, (b) expensing of previously capitalized interest
included in costs of home sales, (c) income taxes and
(d) depreciation and amortization. Adjusted EBITDA means
EBITDA before (e) amortization of stock-based compensation,
(f) impairments and lot option abandonments, (g) early loan
termination costs and (h) restructuring charges. Other companies
may calculate EBITDA and Adjusted EBITDA (or similarly titled
measures) differently. We believe EBITDA and Adjusted EBITDA are
useful measures of the Company’s ability to service debt and obtain
financing.
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
(in thousands) |
Net income |
$ |
133,156 |
|
|
|
$ |
78,682 |
|
|
|
$ |
321,827 |
|
|
|
$ |
167,093 |
|
|
Interest expense: |
|
|
|
|
|
|
|
Interest incurred |
24,280 |
|
|
|
20,063 |
|
|
|
68,017 |
|
|
|
62,670 |
|
|
Interest capitalized |
(24,280 |
) |
|
|
(20,063 |
) |
|
|
(68,017 |
) |
|
|
(62,670 |
) |
|
Amortization of interest in cost of sales |
25,655 |
|
|
|
23,538 |
|
|
|
77,457 |
|
|
|
62,166 |
|
|
Provision for income taxes |
44,412 |
|
|
|
24,322 |
|
|
|
107,278 |
|
|
|
52,286 |
|
|
Depreciation and amortization |
7,979 |
|
|
|
7,020 |
|
|
|
24,098 |
|
|
|
19,196 |
|
|
EBITDA |
211,202 |
|
|
|
133,562 |
|
|
|
530,660 |
|
|
|
300,741 |
|
|
Amortization of stock-based compensation |
4,410 |
|
|
|
3,477 |
|
|
|
12,572 |
|
|
|
10,888 |
|
|
Impairments and lot option abandonments |
268 |
|
|
|
315 |
|
|
|
713 |
|
|
|
2,044 |
|
|
Early loan termination costs |
— |
|
|
|
3,384 |
|
|
|
— |
|
|
|
10,243 |
|
|
Restructuring charges |
— |
|
|
|
54 |
|
|
|
— |
|
|
|
5,603 |
|
|
Adjusted EBITDA |
$ |
215,880 |
|
|
|
$ |
140,792 |
|
|
|
$ |
543,945 |
|
|
|
$ |
329,519 |
|
|
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