Tri Pointe Homes, Inc. (the “Company”) (NYSE: TPH) today announced
results for the fourth quarter ended December 31, 2021 and
full year 2021. The Company also announced that its Board of
Directors has authorized the repurchase of up to an additional $250
million of common stock under its existing stock repurchase program
(“Repurchase Program”), increasing the aggregate authorization
under the Repurchase Program from $500 million to $750 million.
“Tri Pointe Homes had a record-breaking 2021 in terms of
profitability and a company-best return on average equity of
20.3%,” said Doug Bauer, Chief Executive Officer of Tri Pointe
Homes. “We ended the year on a high note, generating fourth quarter
earnings of $1.33 per diluted share, a 45% year-over-year
improvement. We also met or exceeded our previously stated guidance
for key operational metrics for the quarter due in large part to
the excellent job that our team members’ did navigating the supply
chain challenges that persist in our industry.”
“The factors that contributed to our fourth quarter success
continue to provide momentum, including demand for new homes that
has outstripped supply across our markets. We continue to see
motivated buyers across our geographic footprint, driven in part by
strong demographics and an overall change in attitude towards home
ownership brought on by the pandemic, both of which we believe are
long-term shifts. We believe that these persisting trends, combined
with the limited supply of existing home inventory available for
sale, make for a promising outlook for our industry.”
Bauer concluded, “Tri Pointe Homes is poised to build on the
record-breaking success we experienced in 2021. We had 50% more
lots under control at the end of 2021 than we did in the
prior-year, which should provide us with a strong runway for future
growth. In addition, our strong balance sheet and sizable backlog
give us a favorable market position going forward, making me
extremely optimistic about the future of Tri Pointe Homes.”
Results and Operational Data for Fourth
Quarter 2021 and Comparisons to Fourth Quarter 2020
- Net income was $147.4 million, or
$1.33 per diluted share, compared to $115.1 million, or $0.92 per
diluted share
- Home sales revenue for the quarter was
$1.2 billion, an increase of 15%
- New home deliveries of 1,885 homes
compared to 1,633 homes, an increase of 15%
- Average sales price of homes delivered
of $637,000 compared to $640,000
- Homebuilding gross margin percentage
of 24.4% compared to 23.2%, an increase of 120 basis points, which
includes $20.1 million of impairments and lot option abandonments
- Excluding interest, impairments and
lot option abandonments, adjusted homebuilding gross margin
percentage was 28.1%**
- Selling, general and administrative
(“SG&A”) expense as a percentage of homes sales revenue of 8.5%
compared to 9.9%, a decrease of 140 basis points
- Net new home orders of 1,424 compared
to 1,409, an increase of 1%
- Active selling communities averaged
110.5 compared to 117.5, a decrease of 6%
- Net new home orders per average
selling community increased by 1% to 12.9 orders (4.3 monthly)
compared to 12.0 orders (4.0 monthly)
- Cancellation rate of 9% compared to
10%
- Backlog units at quarter end of 3,158
homes compared to 2,964, an increase of 7%
- Dollar value of backlog at quarter end
of $2.2 billion compared to $1.9 billion, an increase of 17%
- Average sales price in backlog at
quarter end of $710,000 compared to $647,000, an increase of
10%
- Ratios of debt-to-capital and net
debt-to-net capital of 35.3% and 21.1%**, respectively, as of
December 31, 2021
- Repurchased 2,762,900 shares of common
stock at an average price of $22.64 for an aggregate dollar amount
of $62.6 million in the three months ended December 31,
2021
- Ended fourth quarter of 2021 with
total liquidity of $1.3 billion, including cash of $681.5 million
and $601.1 million of availability under the Company’s unsecured
revolving credit facility* Return on average equity is calculated
as net income for the trailing twelve months divided by average
stockholders’ equity for the trailing five quarters** See
“Reconciliation of Non-GAAP Financial Measures”
Results and Operational Data for Full
Year 2021 and Comparisons to Full Year 2020
- Net income was $469.3 million, or $4.12 per diluted share,
compared to $282.2 million, or $2.17 per diluted share
- Home sales revenue of $4.0 billion compared to $3.2 billion, an
increase of 22%
- New home deliveries of 6,188 homes compared to 5,123 homes, an
increase of 21%
- Average sales price of homes delivered of $639,000 compared to
$631,000, an increase of 1%
- Homebuilding gross margin percentage of 24.9% compared to
22.0%, an increase of 290 basis points, which includes $20.8
million of impairments and lot option abandonments
- Excluding interest, impairments and lot option abandonments,
adjusted homebuilding gross margin percentage was 27.9%**
- SG&A expense as a percentage of homes sales revenue of 9.6%
compared to 10.8%, a decrease of 120 basis points
- Net new home orders of 6,382 compared to 6,335, an increase of
1%
- Active selling communities averaged 111.8 compared to 133.2, a
decrease of 16%
- Net new home orders per average selling community increased by
20% to 57.1 orders (4.8 monthly) compared to 47.6 orders (4.0
monthly)
- Cancellation rate of 8% compared to 13%,
- Repurchased 13,063,465 shares of common stock at an average
price of $21.13 for an aggregate dollar amount of $276.0 million in
the full year ended December 31, 2021** See “Reconciliation of
Non-GAAP Financial Measures”
“Our sales pace for the fourth quarter came in at 4.3 homes per
community per month, which is well above seasonal norms for that
time of year,” said Tri Pointe Homes President and Chief Operating
Officer Tom Mitchell. “Demand was consistent company-wide, as each
of our regions registered a sales pace above 3.9. We believe this
is a testament to the innovative design and broad-based appeal of
our homes as well as our strong market positioning. Last year’s
successful one-brand initiative simplified our marketing processes
across our divisions, while amplifying our unified brand across the
country. We feel these factors have positioned Tri Pointe for
continuing success into 2022 and beyond.”
Outlook
For the first quarter of 2022, the Company anticipates
delivering between 900 and 1,100 homes at an average sales price
between $650,000 and $660,000. The Company expects its homebuilding
gross margin percentage to be in the range of 25.0% to 26.0% for
the first quarter of 2022 and anticipates its SG&A expense as a
percentage of home sales revenue will be in the range of 13.0% to
13.5%. Lastly, the Company expects its effective tax rate for the
first quarter of 2022 to be in the range of 25.0% to 26.0%.
For the full year, the Company expects to open between 90 and
100 new communities and end the year with between 150 and 160
active selling communities. In addition, the Company anticipates
delivering between 6,500 and 6,800 homes at an average sales price
between $660,000 and $670,000. The Company expects homebuilding
gross margin percentage to be in the range of 25.0% to 26.0% for
the full year and anticipates its SG&A expense as a percentage
of homes sales revenue will be in the range of 9.7% to 10.2%.
Finally, the Company expects its effective tax rate for the full
year to be in the range of 25.0% to 26.0%.
Stock Repurchase Program
On February 16, 2022, the Company’s Board of Directors approved
the repurchase of up to an additional $250 million of Company
common stock pursuant to its Repurchase Program. As of February 16,
2022, the Company had purchased an aggregate of 18,278,907 shares
of common stock for approximately $387.6 million pursuant to the
Repurchase Program. Under the Repurchase Program as amended, the
Company may repurchase shares of its outstanding common stock with
an aggregate value of up to $750 million through December 31, 2022.
Purchases of common stock pursuant to the Repurchase Program may be
made in open market transactions effected through a broker-dealer
at prevailing market prices, in block trades, or by other means in
accordance with federal securities laws, including pursuant to any
trading plan that may be adopted in accordance with Rule 10b5-1 of
the Securities Exchange Act of 1934, as amended. The Company is not
obligated under the Repurchase Program to repurchase any specific
number or amount of shares of common stock, and it may modify,
suspend or discontinue the program at any time. Company management
will determine the timing and amount of repurchase in its
discretion based on a variety of factors, such as the market price
of the Company’s common stock, corporate requirements, general
market economic conditions and legal requirements.
Earnings Conference Call
The Company will host a conference call via live webcast for
investors and other interested parties beginning at 7:00 a.m.
Pacific Time (10:00 a.m. Eastern Time) on Thursday,
February 17, 2022. 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 presentation slides on the internet through the Events
& Presentations heading in 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 Fourth 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
13726044. 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,
Inc.® (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-Certified™ 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: |
Media
Contact: |
|
|
Drew Mackintosh, Mackintosh
Investor Relations |
Carol Ruiz,
cruiz@newgroundco.com 310-437-0045 |
InvestorRelations@TriPointeHomes.com 949-478-8696 |
|
|
|
KEY OPERATIONS AND FINANCIAL
DATA (dollars in thousands) (unaudited)
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
Change |
|
% Change |
|
|
2021 |
|
|
|
2020 |
|
|
Change |
|
% Change |
Operating Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home sales revenue |
$ |
1,200,222 |
|
|
$ |
1,045,020 |
|
|
$ |
155,202 |
|
|
15 |
% |
|
$ |
3,955,154 |
|
|
$ |
3,232,836 |
|
|
$ |
722,318 |
|
|
22 |
% |
Homebuilding gross margin |
$ |
292,580 |
|
|
$ |
242,002 |
|
|
$ |
50,578 |
|
|
21 |
% |
|
$ |
982,917 |
|
|
$ |
712,046 |
|
|
$ |
270,871 |
|
|
38 |
% |
Homebuilding gross margin % |
|
24.4 |
% |
|
|
23.2 |
% |
|
|
1.2 |
% |
|
|
|
|
24.9 |
% |
|
|
22.0 |
% |
|
|
2.9 |
% |
|
|
Adjusted homebuilding gross margin %* |
|
28.1 |
% |
|
|
26.3 |
% |
|
|
1.8 |
% |
|
|
|
|
27.9 |
% |
|
|
25.0 |
% |
|
|
2.9 |
% |
|
|
SG&A expense |
$ |
102,451 |
|
|
$ |
103,155 |
|
|
$ |
(704 |
) |
|
(1 |
)% |
|
$ |
379,377 |
|
|
$ |
349,414 |
|
|
$ |
29,963 |
|
|
9 |
% |
SG&A expense as a % of home sales revenue |
|
8.5 |
% |
|
|
9.9 |
% |
|
|
(1.4 |
)% |
|
|
|
|
9.6 |
% |
|
|
10.8 |
% |
|
|
(1.2 |
)% |
|
|
Net income |
$ |
147,440 |
|
|
$ |
115,114 |
|
|
$ |
32,326 |
|
|
28 |
% |
|
$ |
469,267 |
|
|
$ |
282,207 |
|
|
$ |
187,060 |
|
|
66 |
% |
Adjusted EBITDA* |
$ |
257,365 |
|
|
$ |
203,396 |
|
|
$ |
53,969 |
|
|
27 |
% |
|
$ |
801,310 |
|
|
$ |
532,915 |
|
|
$ |
268,395 |
|
|
50 |
% |
Interest incurred |
$ |
24,766 |
|
|
$ |
20,450 |
|
|
$ |
4,316 |
|
|
21 |
% |
|
$ |
92,783 |
|
|
$ |
83,120 |
|
|
$ |
9,663 |
|
|
12 |
% |
Interest in cost of home sales |
$ |
23,991 |
|
|
$ |
31,013 |
|
|
$ |
(7,022 |
) |
|
(23 |
)% |
|
$ |
101,176 |
|
|
$ |
93,131 |
|
|
$ |
8,045 |
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net new home orders |
|
1,424 |
|
|
|
1,409 |
|
|
|
15 |
|
|
1 |
% |
|
|
6,382 |
|
|
|
6,335 |
|
|
|
47 |
|
|
1 |
% |
New homes delivered |
|
1,885 |
|
|
|
1,633 |
|
|
|
252 |
|
|
15 |
% |
|
|
6,188 |
|
|
|
5,123 |
|
|
|
1,065 |
|
|
21 |
% |
Average selling price of homes delivered |
$ |
637 |
|
|
$ |
640 |
|
|
$ |
(3 |
) |
|
0 |
% |
|
$ |
639 |
|
|
$ |
631 |
|
|
$ |
8 |
|
|
1 |
% |
Cancellation rate |
|
9 |
% |
|
|
10 |
% |
|
|
(1 |
)% |
|
|
|
|
8 |
% |
|
|
13 |
% |
|
|
(5 |
)% |
|
|
Average selling communities |
|
110.5 |
|
|
|
117.5 |
|
|
|
(7.0 |
) |
|
(6 |
)% |
|
|
111.8 |
|
|
|
133.2 |
|
|
|
(21.4 |
) |
|
(16 |
)% |
Selling communities at end of period |
|
112 |
|
|
|
112 |
|
|
|
0 |
|
|
0 |
% |
|
|
|
|
|
|
|
|
Backlog (estimated dollar value) |
$ |
2,242,159 |
|
|
$ |
1,916,664 |
|
|
$ |
325,495 |
|
|
17 |
% |
|
|
|
|
|
|
|
|
Backlog (homes) |
|
3,158 |
|
|
|
2,964 |
|
|
|
194 |
|
|
7 |
% |
|
|
|
|
|
|
|
|
Average selling price in backlog |
$ |
710 |
|
|
$ |
647 |
|
|
$ |
63 |
|
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,2021 |
|
December 31,2020 |
|
Change |
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
681,528 |
|
|
$ |
621,295 |
|
|
$ |
60,233 |
|
|
|
|
|
|
|
|
|
|
|
Real estate inventories |
$ |
3,054,743 |
|
|
$ |
2,910,142 |
|
|
$ |
144,601 |
|
|
|
|
|
|
|
|
|
|
|
Lots owned or controlled |
|
41,675 |
|
|
|
35,641 |
|
|
|
6,034 |
|
|
|
|
|
|
|
|
|
|
|
Homes under construction (1) |
|
3,632 |
|
|
|
3,044 |
|
|
|
588 |
|
|
|
|
|
|
|
|
|
|
|
Homes completed, unsold |
|
27 |
|
|
|
68 |
|
|
|
(41 |
) |
|
|
|
|
|
|
|
|
|
|
Total debt, net |
$ |
1,337,723 |
|
|
$ |
1,343,001 |
|
|
$ |
(5,278 |
) |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
$ |
2,447,621 |
|
|
$ |
2,232,537 |
|
|
$ |
215,084 |
|
|
|
|
|
|
|
|
|
|
|
Book capitalization |
$ |
3,785,344 |
|
|
$ |
3,575,538 |
|
|
$ |
209,806 |
|
|
|
|
|
|
|
|
|
|
|
Ratio of debt-to-capital |
|
35.3 |
% |
|
|
37.6 |
% |
|
|
(2.3 |
)% |
|
|
|
|
|
|
|
|
|
|
Ratio of net debt-to-net-capital* |
|
21.1 |
% |
|
|
24.4 |
% |
|
|
(3.3 |
)% |
|
|
|
|
|
|
|
|
|
|
_____________________________________(1) Homes under
construction included 85 and 86 models at December 31, 2021
and December 31, 2020, respectively.* See “Reconciliation of
Non-GAAP Financial Measures”
CONSOLIDATED BALANCE SHEETS (in
thousands, except share amounts)
|
|
December 31,2021 |
|
December 31,2020 |
Assets |
|
(unaudited) |
|
|
Cash and cash equivalents |
|
$ |
681,528 |
|
|
$ |
621,295 |
|
Receivables |
|
|
116,996 |
|
|
|
63,551 |
|
Real estate inventories |
|
|
3,054,743 |
|
|
|
2,910,142 |
|
Investments in unconsolidated entities |
|
|
118,095 |
|
|
|
75,056 |
|
Goodwill and other intangible assets, net |
|
|
156,603 |
|
|
|
158,529 |
|
Deferred tax assets, net |
|
|
57,096 |
|
|
|
47,525 |
|
Other assets |
|
|
151,162 |
|
|
|
145,882 |
|
Total assets |
|
$ |
4,336,223 |
|
|
$ |
4,021,980 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Accounts payable |
|
$ |
84,854 |
|
|
$ |
79,690 |
|
Accrued expenses and other liabilities |
|
|
466,013 |
|
|
|
366,740 |
|
Loans payable |
|
|
250,504 |
|
|
|
258,979 |
|
Senior notes |
|
|
1,087,219 |
|
|
|
1,084,022 |
|
Total liabilities |
|
|
1,888,590 |
|
|
|
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 December 31, 2021 and December
31, 2020, respectively |
|
|
— |
|
|
|
— |
|
Common stock, $0.01 par value, 500,000,000 shares
authorized; 109,644,474 and 121,882,778 shares issued and
outstanding at December 31, 2021 and December 31, 2020,
respectively |
|
|
1,096 |
|
|
|
1,219 |
|
Additional paid-in capital |
|
|
91,077 |
|
|
|
345,137 |
|
Retained earnings |
|
|
2,355,448 |
|
|
|
1,886,181 |
|
Total stockholders' equity |
|
|
2,447,621 |
|
|
|
2,232,537 |
|
Noncontrolling interests |
|
|
12 |
|
|
|
12 |
|
Total equity |
|
|
2,447,633 |
|
|
|
2,232,549 |
|
Total liabilities and equity |
|
$ |
4,336,223 |
|
|
$ |
4,021,980 |
|
CONSOLIDATED STATEMENT OF
OPERATIONS (in thousands, except share and per share
amounts) (unaudited)
|
Three Months EndedDecember 31, |
|
Year EndedDecember 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Homebuilding: |
|
|
|
|
|
|
|
Home sales revenue |
$ |
1,200,222 |
|
|
$ |
1,045,020 |
|
|
$ |
3,955,154 |
|
|
$ |
3,232,836 |
|
Land and lot sales revenue |
|
5,496 |
|
|
|
12,470 |
|
|
|
13,016 |
|
|
|
15,932 |
|
Other operations revenue |
|
650 |
|
|
|
642 |
|
|
|
2,619 |
|
|
|
2,542 |
|
Total revenues |
|
1,206,368 |
|
|
|
1,058,132 |
|
|
|
3,970,789 |
|
|
|
3,251,310 |
|
Cost of home sales |
|
907,642 |
|
|
|
803,018 |
|
|
|
2,972,237 |
|
|
|
2,520,790 |
|
Cost of land and lot sales |
|
5,667 |
|
|
|
2,653 |
|
|
|
11,585 |
|
|
|
6,443 |
|
Other operations expense |
|
439 |
|
|
|
624 |
|
|
|
2,550 |
|
|
|
2,496 |
|
Sales and marketing |
|
48,390 |
|
|
|
50,565 |
|
|
|
179,214 |
|
|
|
183,110 |
|
General and administrative |
|
54,061 |
|
|
|
52,590 |
|
|
|
200,163 |
|
|
|
166,304 |
|
Restructuring charges |
|
— |
|
|
|
58 |
|
|
|
— |
|
|
|
5,661 |
|
Homebuilding income from operations |
|
190,169 |
|
|
|
148,624 |
|
|
|
605,040 |
|
|
|
366,506 |
|
Equity in (loss) income of unconsolidated entities |
|
(24 |
) |
|
|
95 |
|
|
|
(96 |
) |
|
|
162 |
|
Other income (expense), net |
|
97 |
|
|
|
97 |
|
|
|
525 |
|
|
|
(8,978 |
) |
Homebuilding income before income taxes |
|
190,242 |
|
|
|
148,816 |
|
|
|
605,469 |
|
|
|
357,690 |
|
Financial
Services: |
|
|
|
|
|
|
|
Revenues |
|
3,644 |
|
|
|
2,695 |
|
|
|
11,446 |
|
|
|
9,137 |
|
Expenses |
|
1,782 |
|
|
|
1,417 |
|
|
|
6,292 |
|
|
|
5,115 |
|
Equity in income of unconsolidated entities |
|
4,453 |
|
|
|
3,904 |
|
|
|
15,039 |
|
|
|
11,665 |
|
Financial services income before income taxes |
|
6,315 |
|
|
|
5,182 |
|
|
|
20,193 |
|
|
|
15,687 |
|
Income before income
taxes |
|
196,557 |
|
|
|
153,998 |
|
|
|
625,662 |
|
|
|
373,377 |
|
Provision for income
taxes |
|
(49,117 |
) |
|
|
(38,884 |
) |
|
|
(156,395 |
) |
|
|
(91,170 |
) |
Net income |
$ |
147,440 |
|
|
$ |
115,114 |
|
|
$ |
469,267 |
|
|
$ |
282,207 |
|
Earnings per share |
|
|
|
|
|
|
|
Basic |
$ |
1.34 |
|
|
$ |
0.93 |
|
|
$ |
4.16 |
|
|
$ |
2.18 |
|
Diluted |
$ |
1.33 |
|
|
$ |
0.92 |
|
|
$ |
4.12 |
|
|
$ |
2.17 |
|
Weighted average shares
outstanding |
|
|
|
|
|
|
|
Basic |
|
109,911,768 |
|
|
|
123,944,552 |
|
|
|
112,836,051 |
|
|
|
129,368,964 |
|
Diluted |
|
111,126,846 |
|
|
|
124,815,177 |
|
|
|
113,809,292 |
|
|
|
129,951,161 |
|
MARKET DATA BY REPORTING SEGMENT &
STATE(dollars in thousands) (unaudited)
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
NewHomesDelivered |
|
AverageSalesPrice |
|
NewHomesDelivered |
|
AverageSalesPrice |
|
NewHomesDelivered |
|
AverageSalesPrice |
|
NewHomesDelivered |
|
AverageSalesPrice |
Arizona |
218 |
|
$ |
703 |
|
189 |
|
$ |
601 |
|
788 |
|
$ |
677 |
|
664 |
|
$ |
553 |
California |
745 |
|
|
639 |
|
700 |
|
|
687 |
|
2,608 |
|
|
664 |
|
2,010 |
|
|
721 |
Nevada |
146 |
|
|
718 |
|
204 |
|
|
602 |
|
527 |
|
|
637 |
|
525 |
|
|
561 |
Washington |
73 |
|
|
989 |
|
116 |
|
|
973 |
|
296 |
|
|
986 |
|
286 |
|
|
928 |
West total |
1,182 |
|
|
682 |
|
1,209 |
|
|
687 |
|
4,219 |
|
|
686 |
|
3,485 |
|
|
682 |
Colorado |
77 |
|
|
650 |
|
53 |
|
|
597 |
|
231 |
|
|
606 |
|
219 |
|
|
594 |
Texas |
360 |
|
|
509 |
|
212 |
|
|
441 |
|
1,081 |
|
|
491 |
|
910 |
|
|
459 |
Central total |
437 |
|
|
534 |
|
265 |
|
|
472 |
|
1,312 |
|
|
512 |
|
1,129 |
|
|
485 |
Maryland |
120 |
|
|
543 |
|
108 |
|
|
523 |
|
323 |
|
|
554 |
|
336 |
|
|
553 |
North Carolina |
32 |
|
|
462 |
|
7 |
|
|
363 |
|
85 |
|
|
419 |
|
7 |
|
|
363 |
South Carolina |
18 |
|
|
370 |
|
5 |
|
|
325 |
|
29 |
|
|
357 |
|
5 |
|
|
325 |
Virginia |
96 |
|
|
768 |
|
39 |
|
|
747 |
|
220 |
|
|
751 |
|
161 |
|
|
739 |
East total |
266 |
|
|
603 |
|
159 |
|
|
565 |
|
657 |
|
|
594 |
|
509 |
|
|
607 |
Total |
1,885 |
|
$ |
637 |
|
1,633 |
|
$ |
640 |
|
6,188 |
|
$ |
639 |
|
5,123 |
|
$ |
631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
Arizona |
153 |
|
|
11.7 |
|
167 |
|
|
15.8 |
|
829 |
|
|
13.8 |
|
813 |
|
|
16.9 |
California |
521 |
|
|
40.0 |
|
559 |
|
|
40.0 |
|
2,386 |
|
|
39.2 |
|
2,716 |
|
|
48.5 |
Nevada |
149 |
|
|
10.0 |
|
111 |
|
|
13.7 |
|
717 |
|
|
10.9 |
|
524 |
|
|
14.8 |
Washington |
57 |
|
|
5.8 |
|
27 |
|
|
5.5 |
|
286 |
|
|
5.7 |
|
336 |
|
|
7.5 |
West total |
880 |
|
|
67.5 |
|
864 |
|
|
75.0 |
|
4,218 |
|
|
69.6 |
|
4,389 |
|
|
87.7 |
Colorado |
71 |
|
|
7.8 |
|
64 |
|
|
4.8 |
|
289 |
|
|
6.2 |
|
245 |
|
|
4.3 |
Texas |
274 |
|
|
21.7 |
|
306 |
|
|
26.0 |
|
1,219 |
|
|
22.3 |
|
1,063 |
|
|
29.0 |
Central total |
345 |
|
|
29.5 |
|
370 |
|
|
30.8 |
|
1,508 |
|
|
28.5 |
|
1,308 |
|
|
33.3 |
Maryland |
56 |
|
|
4.3 |
|
86 |
|
|
6.5 |
|
205 |
|
|
5.1 |
|
420 |
|
|
8.2 |
North Carolina |
78 |
|
|
3.7 |
|
19 |
|
|
0.7 |
|
169 |
|
|
2.2 |
|
19 |
|
|
0.2 |
South Carolina |
13.0 |
|
|
1.0 |
|
2 |
|
|
1.0 |
|
51.0 |
|
|
1.3 |
|
8 |
|
|
0.3 |
Virginia |
52 |
|
|
4.5 |
|
68 |
|
|
3.5 |
|
231 |
|
|
5.1 |
|
191 |
|
|
3.5 |
East total |
199 |
|
|
13.5 |
|
175 |
|
|
11.7 |
|
656 |
|
|
13.7 |
|
638 |
|
|
12.2 |
Total |
1,424 |
|
|
110.5 |
|
1,409 |
|
|
117.5 |
|
6,382 |
|
|
111.8 |
|
6,335 |
|
|
133.2 |
MARKET DATA BY REPORTING SEGMENT &
STATE, continued(dollars in thousands) (unaudited)
|
|
As of December 31, 2021 |
|
As of December 31, 2020 |
|
|
BacklogUnits |
|
BacklogDollarValue |
|
AverageSalesPrice |
|
BacklogUnits |
|
BacklogDollarValue |
|
AverageSalesPrice |
Arizona |
|
520 |
|
$ |
401,257 |
|
$ |
772 |
|
479 |
|
$ |
324,410 |
|
$ |
677 |
California |
|
1,036 |
|
|
774,901 |
|
|
748 |
|
1,258 |
|
|
855,261 |
|
|
680 |
Nevada |
|
326 |
|
|
237,712 |
|
|
729 |
|
136 |
|
|
95,963 |
|
|
706 |
Washington |
|
129 |
|
|
133,317 |
|
|
1,033 |
|
139 |
|
|
139,435 |
|
|
1,003 |
West total |
|
2,011 |
|
|
1,547,187 |
|
|
769 |
|
2,012 |
|
|
1,415,069 |
|
|
703 |
Colorado |
|
184 |
|
|
134,831 |
|
|
733 |
|
126 |
|
|
71,940 |
|
|
571 |
Texas |
|
636 |
|
|
337,232 |
|
|
530 |
|
498 |
|
|
232,323 |
|
|
467 |
Central total |
|
820 |
|
|
472,063 |
|
|
576 |
|
624 |
|
|
304,263 |
|
|
488 |
Maryland |
|
83 |
|
|
59,528 |
|
|
717 |
|
201 |
|
|
113,828 |
|
|
566 |
North Carolina |
|
96 |
|
|
45,380 |
|
|
473 |
|
12 |
|
|
4,274 |
|
|
356 |
South Carolina |
|
25 |
|
|
9,825 |
|
|
393 |
|
3 |
|
|
840 |
|
|
280 |
Virginia |
|
123 |
|
|
108,176 |
|
|
879 |
|
112 |
|
|
78,390 |
|
|
700 |
East total |
|
327 |
|
|
222,909 |
|
|
682 |
|
328 |
|
|
197,332 |
|
|
602 |
Total |
|
3,158 |
|
$ |
2,242,159 |
|
$ |
710 |
|
2,964 |
|
$ |
1,916,664 |
|
$ |
647 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,2021 |
|
December 31,2020 |
|
|
|
|
|
|
|
|
Lots Owned or
Controlled: |
|
|
|
|
|
|
|
|
|
|
|
|
Arizona |
|
4,607 |
|
|
4,128 |
|
|
|
|
|
|
|
|
California |
|
15,091 |
|
|
15,040 |
|
|
|
|
|
|
|
|
Nevada |
|
2,161 |
|
|
2,639 |
|
|
|
|
|
|
|
|
Washington |
|
1,010 |
|
|
964 |
|
|
|
|
|
|
|
|
West total |
|
22,869 |
|
|
22,771 |
|
|
|
|
|
|
|
|
Colorado |
|
1,683 |
|
|
1,080 |
|
|
|
|
|
|
|
|
Texas |
|
12,297 |
|
|
6,985 |
|
|
|
|
|
|
|
|
Central total |
|
13,980 |
|
|
8,065 |
|
|
|
|
|
|
|
|
Maryland |
|
573 |
|
|
892 |
|
|
|
|
|
|
|
|
North Carolina |
|
3,044 |
|
|
2,808 |
|
|
|
|
|
|
|
|
South Carolina |
|
414 |
|
|
106 |
|
|
|
|
|
|
|
|
Virginia |
|
795 |
|
|
999 |
|
|
|
|
|
|
|
|
East total |
|
4,826 |
|
|
4,805 |
|
|
|
|
|
|
|
|
Total |
|
41,675 |
|
|
35,641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,2021 |
|
December 31,2020 |
|
|
|
|
|
|
|
|
Lots by Ownership
Type: |
|
|
|
|
|
|
|
|
|
|
|
|
Lots owned |
|
22,136 |
|
|
22,620 |
|
|
|
|
|
|
|
|
Lots controlled (1) |
|
19,539 |
|
|
13,021 |
|
|
|
|
|
|
|
|
Total |
|
41,675 |
|
|
35,641 |
|
|
|
|
|
|
|
|
_____________________________________(1) As of December 31,
2021 and 2020, lots controlled included lots that were under land
option contracts or purchase contracts. As of December 31, 2021 and
2020, lots controlled for Central include 2,950 and 2,083 lots,
respectively, and lots controlled for East include 179 lots, which
represent our expected share of lots owned by our investments in
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 financial measure adjusted homebuilding gross margin
percentage. We believe this information is meaningful as it
isolates the impact that leverage and non-cash impairments and lot
option abandonments, as applicable, have on homebuilding gross
margin and permits investors to make better comparisons with our
competitors, who may adjust gross margins in a similar fashion.
|
|
Three Months Ended December 31, |
|
|
|
2021 |
|
|
% |
|
|
2020 |
|
|
% |
|
|
(dollars in thousands) |
Home sales revenue |
|
$ |
1,200,222 |
|
|
100.0 |
% |
|
$ |
1,045,020 |
|
|
100.0 |
% |
Cost of home sales |
|
|
907,642 |
|
|
75.6 |
% |
|
|
803,018 |
|
|
76.8 |
% |
Homebuilding gross margin |
|
|
292,580 |
|
|
24.4 |
% |
|
|
242,002 |
|
|
23.2 |
% |
Add: interest in cost of home sales |
|
|
23,991 |
|
|
2.0 |
% |
|
|
31,013 |
|
|
3.0 |
% |
Add: impairments and lot option abandonments |
|
|
20,125 |
|
|
1.7 |
% |
|
|
1,960 |
|
|
0.2 |
% |
Adjusted homebuilding gross
margin(1) |
|
$ |
336,696 |
|
|
28.1 |
% |
|
$ |
274,975 |
|
|
26.4 |
% |
Homebuilding gross margin
percentage |
|
|
24.4 |
% |
|
|
|
|
23.2 |
% |
|
|
Adjusted homebuilding gross
margin percentage(1) |
|
|
28.1 |
% |
|
|
|
|
26.3 |
% |
|
|
|
|
Year Ended December 31, |
|
|
|
2021 |
|
|
% |
|
|
2020 |
|
|
% |
|
|
(dollars in thousands) |
Home sales revenue |
|
$ |
3,955,154 |
|
|
100.0 |
% |
|
$ |
3,232,836 |
|
|
100.0 |
% |
Cost of home sales |
|
|
2,972,237 |
|
|
75.1 |
% |
|
|
2,520,790 |
|
|
78.0 |
% |
Homebuilding gross margin |
|
|
982,917 |
|
|
24.9 |
% |
|
|
712,046 |
|
|
22.0 |
% |
Add: interest in cost of home sales |
|
|
101,176 |
|
|
2.6 |
% |
|
|
93,131 |
|
|
2.9 |
% |
Add: impairments and lot option abandonments |
|
|
20,838 |
|
|
0.5 |
% |
|
|
4,004 |
|
|
0.1 |
% |
Adjusted homebuilding gross
margin(1) |
|
$ |
1,104,931 |
|
|
27.9 |
% |
|
$ |
809,181 |
|
|
25.0 |
% |
Homebuilding gross margin
percentage |
|
|
24.9 |
% |
|
|
|
|
22.0 |
% |
|
|
Adjusted homebuilding gross
margin percentage(1) |
|
|
27.9 |
% |
|
|
|
|
25.0 |
% |
|
|
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.
|
|
December 31, 2021 |
|
December 31, 2020 |
Loans payable |
|
$ |
250,504 |
|
|
$ |
258,979 |
|
Senior notes |
|
|
1,087,219 |
|
|
|
1,084,022 |
|
Total debt |
|
|
1,337,723 |
|
|
|
1,343,001 |
|
Stockholders’ equity |
|
|
2,447,621 |
|
|
|
2,232,537 |
|
Total capital |
|
$ |
3,785,344 |
|
|
$ |
3,575,538 |
|
Ratio of
debt-to-capital(1) |
|
|
35.3 |
% |
|
|
37.6 |
% |
|
|
|
|
|
Total debt |
|
$ |
1,337,723 |
|
|
$ |
1,343,001 |
|
Less: Cash and cash
equivalents |
|
|
(681,528 |
) |
|
|
(621,295 |
) |
Net debt |
|
|
656,195 |
|
|
|
721,706 |
|
Stockholders’ equity |
|
|
2,447,621 |
|
|
|
2,232,537 |
|
Net capital |
|
$ |
3,103,816 |
|
|
$ |
2,954,243 |
|
Ratio of net debt-to-net
capital(2) |
|
|
21.1 |
% |
|
|
24.4 |
% |
_____________________________________(1) The ratio of
debt-to-capital is computed as the quotient obtained by dividing
debt by the sum of debt plus equity.(2) The ratio of net
debt-to-net capital is computed as the quotient obtained by
dividing net debt (which is debt less cash and cash equivalents) by
the sum of net debt plus 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) real
estate inventory 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 EndedDecember 31, |
|
Year EndedDecember 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
(in thousands) |
Net income available to common
stockholders |
|
$ |
147,440 |
|
|
$ |
115,114 |
|
|
$ |
469,267 |
|
|
$ |
282,207 |
|
Interest expense: |
|
|
|
|
|
|
|
|
Interest incurred |
|
|
24,766 |
|
|
|
20,450 |
|
|
|
92,783 |
|
|
|
83,120 |
|
Interest capitalized |
|
|
(24,766 |
) |
|
|
(20,450 |
) |
|
|
(92,783 |
) |
|
|
(83,120 |
) |
Amortization of interest in cost of sales |
|
|
23,991 |
|
|
|
31,082 |
|
|
|
101,448 |
|
|
|
93,248 |
|
Provision for income taxes |
|
|
49,117 |
|
|
|
38,884 |
|
|
|
156,395 |
|
|
|
91,170 |
|
Depreciation and amortization |
|
|
8,323 |
|
|
|
10,301 |
|
|
|
32,421 |
|
|
|
29,497 |
|
EBITDA |
|
|
228,871 |
|
|
|
195,381 |
|
|
|
759,531 |
|
|
|
496,122 |
|
Amortization of stock-based compensation |
|
|
8,369 |
|
|
|
5,997 |
|
|
|
20,941 |
|
|
|
16,885 |
|
Real estate inventory impairments and lot option abandonments |
|
|
20,125 |
|
|
|
1,960 |
|
|
|
20,838 |
|
|
|
4,004 |
|
Early loan termination costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,243 |
|
Restructuring charges |
|
|
— |
|
|
|
58 |
|
|
|
— |
|
|
|
5,661 |
|
Adjusted EBITDA |
|
$ |
257,365 |
|
|
$ |
203,396 |
|
|
$ |
801,310 |
|
|
$ |
532,915 |
|
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