Tri Pointe Homes, Inc. (the “Company”) (NYSE:TPH) today announced
results for the first quarter ended March 31, 2022.
“Tri Pointe Homes delivered another quarter of outstanding
results in the first quarter of 2022, highlighted by earnings of
$0.81 per diluted share,” said Doug Bauer, Chief Executive Officer
of Tri Pointe Homes. “We came in at the high end or above our
stated guidance for deliveries, average sales price and
homebuilding gross margin percentage, once again demonstrating our
ability to successfully execute through the operational challenges
that persist in our industry. We also increased the dollar value of
our backlog by 19% on a year-over-year basis, putting our company
in a great position to deliver on our full-year guidance for
2022.”
Mr. Bauer continued, “Tri Pointe remains focused on improving
its operational and financial performance by executing on the
strategic initiatives we have emphasized for several quarters now.
These include the continued monetization of our long-dated
California assets, the growth and build-out of our early-stage
markets, a disciplined approach to land acquisition, further
improvements to our cost structure across our homebuilding platform
and a consistent stock repurchase program. We made progress on each
of these fronts in the first quarter of 2022 and expect to see the
continued benefits of these efforts in the years to come.”
Mr. Bauer concluded, “Tri Pointe remains focused on delivering
long-term stockholder value by executing on these major initiatives
and by capitalizing on the opportunities that our industry
currently presents. We believe we have charted a path for continued
success thanks to our strategic focus, our well-capitalized balance
sheet and our seasoned management team, and I am excited for what
the future holds for our company.”
Results and Operational Data for First
Quarter 2022 and Comparisons to First Quarter 2021
- Net income was $88.5 million, or $0.81 per diluted share,
compared to $70.8 million, or $0.59 per diluted share
- Home sales revenue of $725.3 million compared to $716.7
million, an increase of 1%
- New home deliveries of 1,099 homes compared to 1,126 homes, a
decrease of 2%
- Average sales price of homes delivered of $660,000 compared to
$636,000, an increase of 4%
- Homebuilding gross margin percentage of 26.8% compared to
23.9%, an increase of 290 basis points
- Excluding interest and impairments and lot option abandonments,
adjusted homebuilding gross margin percentage was 29.3%*
- SG&A expense as a percentage of homes sales revenue of
11.1% compared to 11.4%, a decrease of 30 basis points
- Net new home orders of 1,896 compared to 1,987, a decrease of
5%
- Active selling communities averaged 111.5 compared to 113.3, a
decrease of 2%
- Net new home orders per average selling community were 17.0
orders (5.7 monthly) compared to 17.5 orders (5.8 monthly)
- Cancellation rate of 8% compared to 6%
- Backlog units at quarter end of 3,955 homes compared to 3,825,
an increase of 3%
- Dollar value of backlog at quarter end of $2.9 billion compared
to $2.5 billion, an increase of 19%
- Average sales price of homes in backlog at quarter end of
$741,000 compared to $641,000, an increase of 16%
- Ratios of debt-to-capital and net debt-to-net capital of 35.7%
and 27.8%*, respectively, as of March 31, 2022
- Repurchased 5,295,236 shares of common stock at a weighted
average price per share of $23.25 for an aggregate dollar amount of
$123.1 million in the three months ended March 31, 2022
- Ended the first quarter of 2022 with total liquidity of $1.0
billion, including cash and cash equivalents of $412.7 million and
$568.0 million of availability under the Company’s unsecured
revolving credit facility
* See “Reconciliation of Non-GAAP
Financial Measures”
“While the housing industry experienced a material rise in
mortgage rates during the first quarter of 2022, it did not dampen
the demand for our homes as evidenced by our sales pace of 5.7
homes per community per month,” said Tri Pointe Homes President and
Chief Operating Officer Tom Mitchell. “We continued to see
motivated buyers at our communities, particularly from the
Millennial-aged cohort, which represents a significant pool of
buyers for our industry. Other demand drivers include the
persistent lack of existing home inventory, the ongoing migration
to lower cost areas and a heightened desire for home ownership
brought about by the pandemic. We believe these positive demand
factors will propel the homebuilding industry forward for years to
come.”
Outlook
For the second quarter, the Company anticipates delivering
between 1,300 and 1,500 homes at an average sales price between
$670,000 and $680,000. The Company expects homebuilding gross
margin percentage to be in the range of 26.0% to 27.0% for the
second quarter and anticipates its SG&A expense as a percentage
of home sales revenue will be in the range of 10.0% to 11.0%.
Finally, the Company expects its effective tax rate for the second
quarter to be in the range of 25.0% to 26.0%.
For the full year, the Company anticipates delivering between
6,500 and 6,800 homes at an average sales price between $680,000
and $690,000. The Company expects homebuilding gross margin
percentage to be in the range of 26.0% to 27.0% for the full year
and anticipates its SG&A expense as a percentage of home sales
revenue will be in the range of 9.7% 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%.
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, April 21, 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 slides on the Internet under 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
First Quarter 2022 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 13728529. 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:
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 March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
Change |
|
% Change |
Operating Data: |
|
(unaudited) |
Home sales revenue |
|
$ |
725,251 |
|
|
$ |
716,675 |
|
|
$ |
8,576 |
|
|
1 |
% |
Homebuilding gross margin |
|
$ |
194,591 |
|
|
$ |
171,319 |
|
|
$ |
23,272 |
|
|
14 |
% |
Homebuilding gross margin % |
|
|
26.8 |
% |
|
|
23.9 |
% |
|
|
2.9 |
% |
|
|
Adjusted homebuilding gross margin %* |
|
|
29.3 |
% |
|
|
26.8 |
% |
|
|
2.5 |
% |
|
|
SG&A expense |
|
$ |
80,695 |
|
|
$ |
81,809 |
|
|
$ |
(1,114 |
) |
|
(1 |
)% |
SG&A expense as a % of home sales revenue |
|
|
11.1 |
% |
|
|
11.4 |
% |
|
|
(0.3 |
)% |
|
|
Net income |
|
$ |
88,499 |
|
|
$ |
70,802 |
|
|
$ |
17,697 |
|
|
25 |
% |
Adjusted EBITDA* |
|
$ |
146,091 |
|
|
$ |
126,080 |
|
|
$ |
20,011 |
|
|
16 |
% |
Interest incurred |
|
$ |
28,553 |
|
|
$ |
21,179 |
|
|
$ |
7,374 |
|
|
35 |
% |
Interest in cost of home sales |
|
$ |
17,065 |
|
|
$ |
20,678 |
|
|
$ |
(3,613 |
) |
|
(17 |
)% |
|
|
|
|
|
|
|
|
|
Other Data: |
|
|
|
|
|
|
|
|
Net new home orders |
|
|
1,896 |
|
|
|
1,987 |
|
|
|
(91 |
) |
|
(5 |
)% |
New homes delivered |
|
|
1,099 |
|
|
|
1,126 |
|
|
|
(27 |
) |
|
(2 |
)% |
Average sales price of homes delivered |
|
$ |
660 |
|
|
$ |
636 |
|
|
$ |
24 |
|
|
4 |
% |
Cancellation rate |
|
|
8 |
% |
|
|
6 |
% |
|
|
2 |
% |
|
|
Average selling communities |
|
|
111.5 |
|
|
|
113.3 |
|
|
|
(1.8 |
) |
|
(2 |
)% |
Selling communities at end of period |
|
|
116 |
|
|
|
117 |
|
|
|
(1 |
) |
|
(1 |
)% |
Backlog (estimated dollar value) |
|
$ |
2,929,187 |
|
|
$ |
2,451,805 |
|
|
$ |
477,382 |
|
|
19 |
% |
Backlog (homes) |
|
|
3,955 |
|
|
|
3,825 |
|
|
|
130 |
|
|
3 |
% |
Average sales price in backlog |
|
$ |
741 |
|
|
$ |
641 |
|
|
$ |
100 |
|
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
Change |
|
% Change |
Balance Sheet Data: |
|
(unaudited) |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
412,703 |
|
|
$ |
681,528 |
|
|
$ |
(268,825 |
) |
|
(39 |
)% |
Real estate inventories |
|
$ |
3,288,347 |
|
|
$ |
3,054,743 |
|
|
$ |
233,604 |
|
|
8 |
% |
Lots owned or controlled |
|
|
41,828 |
|
|
|
41,675 |
|
|
|
153 |
|
|
0 |
% |
Homes under construction(1) |
|
|
4,214 |
|
|
|
3,632 |
|
|
|
582 |
|
|
16 |
% |
Homes completed, unsold |
|
|
25 |
|
|
|
27 |
|
|
|
(2 |
) |
|
(7 |
)% |
Debt |
|
$ |
1,338,050 |
|
|
$ |
1,337,723 |
|
|
$ |
327 |
|
|
0 |
% |
Stockholders’ equity |
|
$ |
2,408,234 |
|
|
$ |
2,447,621 |
|
|
$ |
(39,387 |
) |
|
(2 |
)% |
Book capitalization |
|
$ |
3,746,284 |
|
|
$ |
3,785,344 |
|
|
$ |
(39,060 |
) |
|
(1 |
)% |
Ratio of debt-to-capital |
|
|
35.7 |
% |
|
|
35.3 |
% |
|
|
0.4 |
% |
|
|
Ratio of net debt-to-net capital* |
|
|
27.8 |
% |
|
|
21.1 |
% |
|
|
6.7 |
% |
|
|
|
(1) Homes
under construction included 98 and 85 models at March 31, 2022
and December 31, 2021, respectively.* See “Reconciliation of
Non-GAAP Financial Measures” |
CONSOLIDATED BALANCE SHEETS(in thousands, except
share and per share amounts) |
|
|
|
March 31, |
|
December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
Assets |
|
(unaudited) |
|
|
Cash and cash equivalents |
|
$ |
412,703 |
|
|
$ |
681,528 |
|
Receivables |
|
|
116,749 |
|
|
|
116,996 |
|
Real estate inventories |
|
|
3,288,347 |
|
|
|
3,054,743 |
|
Investments in unconsolidated entities |
|
|
122,366 |
|
|
|
118,095 |
|
Goodwill and other intangible assets, net |
|
|
156,603 |
|
|
|
156,603 |
|
Deferred tax assets, net |
|
|
57,096 |
|
|
|
57,096 |
|
Other assets |
|
|
160,208 |
|
|
|
151,162 |
|
Total assets |
|
$ |
4,314,072 |
|
|
$ |
4,336,223 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Accounts payable |
|
$ |
76,015 |
|
|
$ |
84,854 |
|
Accrued expenses and other liabilities |
|
|
490,877 |
|
|
|
466,013 |
|
Loans payable |
|
|
250,000 |
|
|
|
250,504 |
|
Senior notes |
|
|
1,088,050 |
|
|
|
1,087,219 |
|
Total liabilities |
|
|
1,904,942 |
|
|
|
1,888,590 |
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
Stockholders’ equity: |
|
|
|
|
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no
shares issued and outstanding as of March 31, 2022 and December 31,
2021, respectively |
|
|
— |
|
|
|
— |
|
Common stock, $0.01 par value, 500,000,000 shares authorized;
104,980,860 and 109,644,474 shares issued and outstanding at March
31, 2022 and December 31, 2021, respectively |
|
|
1,050 |
|
|
|
1,096 |
|
Additional paid-in capital |
|
|
— |
|
|
|
91,077 |
|
Retained earnings |
|
|
2,407,184 |
|
|
|
2,355,448 |
|
Total stockholders’ equity |
|
|
2,408,234 |
|
|
|
2,447,621 |
|
Noncontrolling interests |
|
|
896 |
|
|
|
12 |
|
Total equity |
|
|
2,409,130 |
|
|
|
2,447,633 |
|
Total liabilities and equity |
|
$ |
4,314,072 |
|
|
$ |
4,336,223 |
|
CONSOLIDATED STATEMENT OF OPERATIONS(in thousands,
except share and per share amounts)(unaudited) |
|
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
Homebuilding: |
|
|
|
|
Home sales revenue |
|
$ |
725,251 |
|
|
$ |
716,675 |
|
Land and lot sales revenue |
|
|
1,597 |
|
|
|
1,523 |
|
Other operations revenue |
|
|
644 |
|
|
|
663 |
|
Total revenues |
|
|
727,492 |
|
|
|
718,861 |
|
Cost of home sales |
|
|
530,660 |
|
|
|
545,356 |
|
Cost of land and lot sales |
|
|
475 |
|
|
|
153 |
|
Other operations expense |
|
|
646 |
|
|
|
624 |
|
Sales and marketing |
|
|
32,239 |
|
|
|
40,460 |
|
General and administrative |
|
|
48,456 |
|
|
|
41,349 |
|
Homebuilding income from operations |
|
|
115,016 |
|
|
|
90,919 |
|
Equity in loss of unconsolidated entities |
|
|
(55 |
) |
|
|
(13 |
) |
Other income, net |
|
|
273 |
|
|
|
108 |
|
Homebuilding income before income taxes |
|
|
115,234 |
|
|
|
91,014 |
|
Financial
Services: |
|
|
|
|
Revenues |
|
|
8,752 |
|
|
|
2,105 |
|
Expenses |
|
|
5,308 |
|
|
|
1,407 |
|
Equity in income of unconsolidated entities |
|
|
46 |
|
|
|
2,691 |
|
Financial services income before income taxes |
|
|
3,490 |
|
|
|
3,389 |
|
Income before income
taxes |
|
|
118,724 |
|
|
|
94,403 |
|
Provision for income
taxes |
|
|
(30,225 |
) |
|
|
(23,601 |
) |
Net income |
|
|
88,499 |
|
|
|
70,802 |
|
Net income attributable to
noncontrolling interests |
|
|
(1,021 |
) |
|
|
— |
|
Net income available to common
stockholders |
|
$ |
87,478 |
|
|
$ |
70,802 |
|
Earnings per share |
|
|
|
|
Basic |
|
$ |
0.82 |
|
|
$ |
0.59 |
|
Diluted |
|
$ |
0.81 |
|
|
$ |
0.59 |
|
Weighted average shares
outstanding |
|
|
|
|
Basic |
|
|
107,326,911 |
|
|
|
119,355,252 |
|
Diluted |
|
|
108,197,485 |
|
|
|
120,086,573 |
|
MARKET DATA BY REPORTING SEGMENT &
STATE(dollars in thousands)(unaudited) |
|
|
|
Three Months Ended March 31, |
|
|
2022 |
|
2021 |
|
|
NewHomesDelivered |
|
AverageSalesPrice |
|
NewHomesDelivered |
|
AverageSalesPrice |
Arizona |
|
70 |
|
|
$ |
733 |
|
|
160 |
|
|
$ |
665 |
|
California |
|
514 |
|
|
|
680 |
|
|
457 |
|
|
|
672 |
|
Nevada |
|
84 |
|
|
|
686 |
|
|
74 |
|
|
|
626 |
|
Washington |
|
72 |
|
|
|
972 |
|
|
78 |
|
|
|
1,001 |
|
West total |
|
740 |
|
|
|
714 |
|
|
769 |
|
|
|
699 |
|
Colorado |
|
43 |
|
|
|
626 |
|
|
40 |
|
|
|
602 |
|
Texas |
|
220 |
|
|
|
501 |
|
|
214 |
|
|
|
453 |
|
Central total |
|
263 |
|
|
|
521 |
|
|
254 |
|
|
|
477 |
|
Maryland |
|
29 |
|
|
|
579 |
|
|
58 |
|
|
|
546 |
|
North Carolina |
|
18 |
|
|
|
481 |
|
|
14 |
|
|
|
368 |
|
South Carolina |
|
10 |
|
|
|
397 |
|
|
4 |
|
|
|
290 |
|
Virginia |
|
39 |
|
|
|
782 |
|
|
27 |
|
|
|
730 |
|
East total |
|
96 |
|
|
|
624 |
|
|
103 |
|
|
|
560 |
|
Total |
|
1,099 |
|
|
$ |
660 |
|
|
1,126 |
|
|
$ |
636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2022 |
|
2021 |
|
|
Net NewHomeOrders |
|
AverageSellingCommunities |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
Arizona |
|
215 |
|
|
|
13.3 |
|
|
261 |
|
|
|
15.2 |
|
California |
|
701 |
|
|
|
39.0 |
|
|
690 |
|
|
|
38.8 |
|
Nevada |
|
145 |
|
|
|
9.0 |
|
|
255 |
|
|
|
12.0 |
|
Washington |
|
48 |
|
|
|
3.0 |
|
|
71 |
|
|
|
4.5 |
|
West total |
|
1,109 |
|
|
|
64.3 |
|
|
1,277 |
|
|
|
70.5 |
|
Colorado |
|
131 |
|
|
|
8.0 |
|
|
105 |
|
|
|
5.0 |
|
Texas |
|
415 |
|
|
|
22.5 |
|
|
429 |
|
|
|
24.0 |
|
Central total |
|
546 |
|
|
|
30.5 |
|
|
534 |
|
|
|
29.0 |
|
Maryland |
|
52 |
|
|
|
5.2 |
|
|
63 |
|
|
|
6.0 |
|
North Carolina |
|
122 |
|
|
|
8.0 |
|
|
42 |
|
|
|
1.8 |
|
South Carolina |
|
4 |
|
|
|
0.5 |
|
|
6 |
|
|
|
1.0 |
|
Virginia |
|
63 |
|
|
|
3.0 |
|
|
65 |
|
|
|
5.0 |
|
East total |
|
241 |
|
|
|
16.7 |
|
|
176 |
|
|
|
13.8 |
|
Total |
|
1,896 |
|
|
|
111.5 |
|
|
1,987 |
|
|
|
113.3 |
|
MARKET DATA BY REPORTING SEGMENT & STATE,
continued(dollars in thousands)(unaudited) |
|
|
|
As of March 31, 2022 |
|
As of March 31, 2021 |
|
|
BacklogUnits |
|
BacklogDollarValue |
|
AverageSalesPrice |
|
BacklogUnits |
|
BacklogDollarValue |
|
AverageSalesPrice |
Arizona |
|
665 |
|
|
$ |
515,500 |
|
|
$ |
775 |
|
|
580 |
|
|
$ |
394,390 |
|
|
$ |
680 |
|
California |
|
1,223 |
|
|
|
1,016,024 |
|
|
|
831 |
|
|
1,491 |
|
|
|
1,004,571 |
|
|
|
674 |
|
Nevada |
|
387 |
|
|
|
302,271 |
|
|
|
781 |
|
|
317 |
|
|
|
216,693 |
|
|
|
684 |
|
Washington |
|
105 |
|
|
|
102,756 |
|
|
|
979 |
|
|
132 |
|
|
|
137,379 |
|
|
|
1,041 |
|
West total |
|
2,380 |
|
|
|
1,936,551 |
|
|
|
814 |
|
|
2,520 |
|
|
|
1,753,033 |
|
|
|
696 |
|
Colorado |
|
272 |
|
|
|
198,666 |
|
|
|
730 |
|
|
191 |
|
|
|
115,836 |
|
|
|
606 |
|
Texas |
|
831 |
|
|
|
473,755 |
|
|
|
570 |
|
|
713 |
|
|
|
337,533 |
|
|
|
473 |
|
Central total |
|
1,103 |
|
|
|
672,421 |
|
|
|
610 |
|
|
904 |
|
|
|
453,369 |
|
|
|
502 |
|
Maryland |
|
106 |
|
|
|
85,952 |
|
|
|
811 |
|
|
206 |
|
|
|
118,960 |
|
|
|
577 |
|
North Carolina |
|
201 |
|
|
|
95,714 |
|
|
|
476 |
|
|
40 |
|
|
|
15,770 |
|
|
|
394 |
|
South Carolina |
|
18 |
|
|
|
7,255 |
|
|
|
403 |
|
|
5 |
|
|
|
1,641 |
|
|
|
328 |
|
Virginia |
|
147 |
|
|
|
131,294 |
|
|
|
893 |
|
|
150 |
|
|
|
109,032 |
|
|
|
727 |
|
East total |
|
472 |
|
|
|
320,215 |
|
|
|
678 |
|
|
401 |
|
|
|
245,403 |
|
|
|
612 |
|
Total |
|
3,955 |
|
|
$ |
2,929,187 |
|
|
$ |
741 |
|
|
3,825 |
|
|
$ |
2,451,805 |
|
|
$ |
641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Lots Owned or
Controlled: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Arizona |
|
4,278 |
|
|
|
4,607 |
|
|
|
|
|
|
|
|
|
|
California |
|
14,226 |
|
|
|
15,091 |
|
|
|
|
|
|
|
|
|
|
Nevada |
|
2,427 |
|
|
|
2,161 |
|
|
|
|
|
|
|
|
|
|
Washington |
|
938 |
|
|
|
1,010 |
|
|
|
|
|
|
|
|
|
|
West total |
|
21,869 |
|
|
|
22,869 |
|
|
|
|
|
|
|
|
|
|
Colorado |
|
2,121 |
|
|
|
1,683 |
|
|
|
|
|
|
|
|
|
|
Texas |
|
11,467 |
|
|
|
12,297 |
|
|
|
|
|
|
|
|
|
|
Central total |
|
13,588 |
|
|
|
13,980 |
|
|
|
|
|
|
|
|
|
|
District of Columbia |
|
105 |
|
|
|
15 |
|
|
|
|
|
|
|
|
|
|
Maryland |
|
725 |
|
|
|
558 |
|
|
|
|
|
|
|
|
|
|
North Carolina |
|
4,693 |
|
|
|
3,044 |
|
|
|
|
|
|
|
|
|
|
South Carolina |
|
18 |
|
|
|
414 |
|
|
|
|
|
|
|
|
|
|
Virginia |
|
830 |
|
|
|
795 |
|
|
|
|
|
|
|
|
|
|
East total |
|
6,371 |
|
|
|
4,826 |
|
|
|
|
|
|
|
|
|
|
Total |
|
41,828 |
|
|
|
41,675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Lots by Ownership
Type: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lots owned |
|
22,317 |
|
|
|
22,136 |
|
|
|
|
|
|
|
|
|
|
Lots controlled (1) |
|
19,511 |
|
|
|
19,539 |
|
|
|
|
|
|
|
|
|
|
Total |
|
41,828 |
|
|
|
41,675 |
|
|
|
|
|
|
|
|
|
|
|
(1) As of
March 31, 2022 and December 31, 2021, lots controlled
included lots that were under land option contracts or purchase
contracts. As of March 31, 2022 and December 31, 2021,
lots controlled for Central include 3,317 and 2,950 lots,
respectively, and lots controlled for East include 174 and 179
lots, respectively, 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 table reconciles 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 March 31, |
|
|
|
2022 |
|
|
% |
|
|
2021 |
|
|
% |
|
|
(dollars in thousands) |
Home sales revenue |
|
$ |
725,251 |
|
|
100.0 |
% |
|
$ |
716,675 |
|
|
100.0 |
% |
Cost of home sales |
|
|
530,660 |
|
|
73.2 |
% |
|
|
545,356 |
|
|
76.1 |
% |
Homebuilding gross margin |
|
|
194,591 |
|
|
26.8 |
% |
|
|
171,319 |
|
|
23.9 |
% |
Add: interest in cost of home sales |
|
|
17,065 |
|
|
2.4 |
% |
|
|
20,678 |
|
|
2.9 |
% |
Add: impairments and lot option abandonments |
|
|
489 |
|
|
0.1 |
% |
|
|
213 |
|
|
0.0 |
% |
Adjusted homebuilding gross
margin |
|
$ |
212,145 |
|
|
29.3 |
% |
|
$ |
192,210 |
|
|
26.8 |
% |
Homebuilding gross margin
percentage |
|
|
26.8 |
% |
|
|
|
|
23.9 |
% |
|
|
Adjusted homebuilding gross
margin percentage |
|
|
29.3 |
% |
|
|
|
|
26.8 |
% |
|
|
|
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.
|
|
March 31, 2022 |
|
December 31, 2021 |
Loans payable |
|
$ |
250,000 |
|
|
$ |
250,504 |
|
Senior notes |
|
|
1,088,050 |
|
|
|
1,087,219 |
|
Total debt |
|
|
1,338,050 |
|
|
|
1,337,723 |
|
Stockholders’ equity |
|
|
2,408,234 |
|
|
|
2,447,621 |
|
Total capital |
|
$ |
3,746,284 |
|
|
$ |
3,785,344 |
|
Ratio of
debt-to-capital(1) |
|
|
35.7 |
% |
|
|
35.3 |
% |
|
|
|
|
|
Total debt |
|
$ |
1,338,050 |
|
|
$ |
1,337,723 |
|
Less: Cash and cash
equivalents |
|
|
(412,703 |
) |
|
|
(681,528 |
) |
Net debt |
|
|
925,347 |
|
|
|
656,195 |
|
Stockholders’ equity |
|
|
2,408,234 |
|
|
|
2,447,621 |
|
Net capital |
|
$ |
3,333,581 |
|
|
$ |
3,103,816 |
|
Ratio of net debt-to-net
capital(2) |
|
|
27.8 |
% |
|
|
21.1 |
% |
|
(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 available to common stockholders
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 and (f) impairments and lot option abandonments. 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 March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
(in thousands) |
Net income available to common
stockholders |
|
$ |
87,478 |
|
|
$ |
70,802 |
|
Interest expense: |
|
|
|
|
Interest incurred |
|
|
28,553 |
|
|
|
21,179 |
|
Interest capitalized |
|
|
(28,553 |
) |
|
|
(21,179 |
) |
Amortization of interest in cost of sales |
|
|
17,065 |
|
|
|
20,678 |
|
Provision for income taxes |
|
|
30,225 |
|
|
|
23,601 |
|
Depreciation and amortization |
|
|
5,285 |
|
|
|
7,130 |
|
EBITDA |
|
|
140,053 |
|
|
|
122,211 |
|
Amortization of stock-based compensation |
|
|
5,272 |
|
|
|
3,656 |
|
Impairments and lot option abandonments |
|
|
766 |
|
|
|
213 |
|
Adjusted EBITDA |
|
$ |
146,091 |
|
|
$ |
126,080 |
|
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