Tri Pointe Homes, Inc. (the “Company”) (NYSE:TPH) today announced
results for the second quarter ended June 30, 2022.
“Tri Pointe Homes delivered another quarter of strong top- and
bottom-line results for the second quarter of 2022,” said Doug
Bauer, Tri Pointe Homes Chief Executive Officer. “Home sales
revenue eclipsed the $1 billion mark for the quarter thanks to our
operating teams who once again did an outstanding job managing
backlog, overcoming labor and supply chain issues and delivering
homes in a timely manner. Home sales gross margin percentage was
27.2% for the quarter, a record for our company, while SG&A as
a percentage of home sales revenue was 9.5%. This strong margin
performance was the primary driver behind the 33% year-over-year
increase in our fully diluted earnings per share to $1.33.”
Mr. Bauer continued, “We generated 1,356 net new home orders
during the quarter on a sales pace of 3.7 homes per community per
month. While this pace is consistent with our company’s
pre-pandemic order performance for a second quarter, we experienced
softening in order activity as the quarter progressed, as the
combination of higher mortgage interest rates and lower consumer
confidence began to impact demand. We believe there will likely be
a period of adjustment as buyers adapt to this new reality,
however, we believe the favorable fundamentals of demographic
trends and undersupply of housing in our markets remain in place
and we are confident in the long-term health of our industry.”
Mr. Bauer concluded, “Our balance sheet remained in excellent
condition, as we ended the quarter with total liquidity of $938
million, including cash and cash equivalents of $270 million and
$668 million available under our unsecured revolving credit
facility. The company’s debt-to-capital ratio was 35.0% and our net
debt-to-net capital ratio was 30.1%*. We believe this combination
of low leverage and ample liquidity will allow us to make smart,
rational decisions from a position of financial strength going
forward and that Tri Pointe is well prepared for what comes
next.”
Results and Operational Data for Second
Quarter 2022 and Comparisons to Second Quarter 2021
- Net income
available to common stockholders was $136.4 million, or $1.33 per
diluted share, compared to $117.9 million, or $1.00 per diluted
share
- Home sales revenue
of $1.0 billion for both periods
- New home deliveries
of 1,485 homes compared to 1,545 homes, a decrease of 4%
- Average sales price
of homes delivered of $677,000 compared to $653,000, an increase of
4%
- Homebuilding gross
margin percentage of 27.2% compared to 24.6%, an increase of 260
basis points
- Excluding interest
and impairments and lot option abandonments, adjusted homebuilding
gross margin percentage was 29.8%*
- SG&A expense as
a percentage of homes sales revenue of 9.5% compared to 9.6%, a
decrease of 10 basis points
- Net new home orders
of 1,356 compared to 1,622, a decrease of 16%
- Active selling
communities averaged 121.8 compared to 114.5, an increase of 6%
- Net new home orders
per average selling community were 11.1 orders (3.7 monthly)
compared to 14.2 orders (4.7 monthly)
- Cancellation rate
of 16% compared to 7%
- Backlog units at
quarter end of 3,826 homes compared to 3,902, a decrease of 2%
- Dollar value of
backlog at quarter end of $3.0 billion compared to $2.5 billion, an
increase of 18%
- Average sales price
of homes in backlog at quarter end of $779,000 compared to
$647,000, an increase of 20%
- Ratios of
debt-to-capital and net debt-to-net capital of 35.0% and 30.1%*,
respectively, as of June 30, 2022
- Repurchased
3,152,234 shares of common stock at a weighted average price per
share of $19.92 for an aggregate dollar amount of $62.8 million in
the three months ended June 30, 2022
- Increased the
maximum amount of our revolving credit facility from $650 million
to $750 million and extended the maturity date of our revolving
credit facility and term loan facility to June 2027
- Ended the second
quarter of 2022 with total liquidity of $937.7 million, including
cash and cash equivalents of $270.1 million and $667.5 million of
availability under our revolving credit facility
* |
See “Reconciliation of Non-GAAP
Financial Measures” |
“Tri Pointe ended the second quarter with a record sold backlog
of nearly $3 billion, putting us in an excellent position to
continue delivering strong top- and bottom-line results for the
remainder of the year,” said Tri Pointe Homes President and Chief
Operating Officer Tom Mitchell. “We believe that our approach of
acquiring land in prime locations close to employment and
transportation centers and other lifestyle amenities that
homebuyers value, combined with our innovative, premium homes,
gives us a distinct selling advantage in a challenging market. We
also have strong leadership teams at both the local and national
levels who have successfully navigated prior housing cycles and are
skilled at operating through such times. Given these positives, we
remain as confident as ever in the long-term outlook for Tri Pointe
Homes.”
Outlook
For the third quarter, the Company anticipates delivering
between 1,300 and 1,500 homes at an average sales price between
$700,000 and $715,000. The Company expects homebuilding gross
margin percentage to be in the range of 26.0% to 27.0% for the
third 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 third
quarter to be in the range of 25.0% to 26.0%.
Due to quickly changing market conditions and significant
uncertainty related to the broader economy, the Company is
providing guidance for the third quarter and is not providing
updated guidance for the full year at this time.
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, July 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 Second 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
13730783. 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 was also named a Great Place to
Work-Certified™ company in both 2021 and 2022. 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 June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
Change |
|
% Change |
|
|
2022 |
|
|
|
2021 |
|
|
Change |
|
% Change |
Operating Data: |
(unaudited) |
Home sales revenue |
$ |
1,004,644 |
|
|
$ |
1,009,307 |
|
|
$ |
(4,663 |
) |
|
0 |
% |
|
$ |
1,729,895 |
|
|
$ |
1,725,982 |
|
|
$ |
3,913 |
|
|
0 |
% |
Homebuilding gross margin |
$ |
273,292 |
|
|
$ |
248,092 |
|
|
$ |
25,200 |
|
|
10 |
% |
|
$ |
467,883 |
|
|
$ |
419,411 |
|
|
$ |
48,472 |
|
|
12 |
% |
Homebuilding gross margin % |
|
27.2 |
% |
|
|
24.6 |
% |
|
|
2.6 |
% |
|
|
|
|
27.0 |
% |
|
|
24.3 |
% |
|
|
2.7 |
% |
|
|
Adjusted homebuilding gross margin %* |
|
29.8 |
% |
|
|
27.7 |
% |
|
|
2.1 |
% |
|
|
|
|
29.6 |
% |
|
|
27.3 |
% |
|
|
2.3 |
% |
|
|
SG&A expense |
$ |
95,352 |
|
|
$ |
96,752 |
|
|
$ |
(1,400 |
) |
|
(1 |
)% |
|
$ |
176,047 |
|
|
$ |
178,561 |
|
|
$ |
(2,514 |
) |
|
(1 |
)% |
SG&A expense as a % of home sales revenue |
|
9.5 |
% |
|
|
9.6 |
% |
|
|
(0.1 |
)% |
|
|
|
|
|
10.2 |
% |
|
|
10.3 |
% |
|
|
(0.1 |
)% |
|
|
|
Net income available to common stockholders |
$ |
136,383 |
|
|
$ |
117,869 |
|
|
$ |
18,514 |
|
|
16 |
% |
|
$ |
223,861 |
|
|
$ |
188,671 |
|
|
$ |
35,190 |
|
|
19 |
% |
Adjusted EBITDA* |
$ |
220,905 |
|
|
$ |
201,986 |
|
|
$ |
18,919 |
|
|
9 |
% |
|
$ |
366,996 |
|
|
$ |
328,066 |
|
|
$ |
38,930 |
|
|
12 |
% |
Interest incurred |
$ |
28,789 |
|
|
$ |
22,558 |
|
|
$ |
6,231 |
|
|
28 |
% |
|
$ |
57,342 |
|
|
$ |
43,737 |
|
|
$ |
13,605 |
|
|
31 |
% |
Interest in cost of home sales |
$ |
24,963 |
|
|
$ |
30,851 |
|
|
$ |
(5,888 |
) |
|
(19 |
)% |
|
$ |
42,028 |
|
|
$ |
51,529 |
|
|
$ |
(9,501 |
) |
|
(18 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net new home orders |
|
1,356 |
|
|
|
1,622 |
|
|
|
(266 |
) |
|
(16 |
)% |
|
|
3,252 |
|
|
|
3,609 |
|
|
|
(357 |
) |
|
(10 |
)% |
New homes delivered |
|
1,485 |
|
|
|
1,545 |
|
|
|
(60 |
) |
|
(4 |
)% |
|
|
2,584 |
|
|
|
2,671 |
|
|
|
(87 |
) |
|
(3 |
)% |
Average sales price of homes delivered |
$ |
677 |
|
|
$ |
653 |
|
|
$ |
24 |
|
|
4 |
% |
|
$ |
669 |
|
|
$ |
646 |
|
|
$ |
23 |
|
|
4 |
% |
Cancellation rate |
|
16 |
% |
|
|
7 |
% |
|
|
9 |
% |
|
|
|
|
11 |
% |
|
|
7 |
% |
|
|
4 |
% |
|
|
Average selling communities |
|
121.8 |
|
|
|
114.5 |
|
|
|
7.3 |
|
|
6 |
% |
|
|
116.7 |
|
|
|
113.4 |
|
|
|
3.3 |
|
|
3 |
% |
Selling communities at end of period |
|
123 |
|
|
|
109 |
|
|
|
14 |
|
|
13 |
% |
|
|
|
|
|
|
|
|
Backlog (estimated dollar value) |
$ |
2,981,255 |
|
|
$ |
2,524,442 |
|
|
$ |
456,813 |
|
|
18 |
% |
|
|
|
|
|
|
|
|
Backlog (homes) |
|
3,826 |
|
|
|
3,902 |
|
|
|
(76 |
) |
|
(2 |
)% |
|
|
|
|
|
|
|
|
Average sales price in backlog |
$ |
779 |
|
|
$ |
647 |
|
|
$ |
132 |
|
|
20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
Balance Sheet Data: |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
270,124 |
|
|
$ |
681,528 |
|
|
$ |
(411,404 |
) |
|
(60 |
)% |
|
|
|
|
|
|
|
|
Real estate inventories |
$ |
3,490,321 |
|
|
$ |
3,054,743 |
|
|
$ |
435,578 |
|
|
14 |
% |
|
|
|
|
|
|
|
|
Lots owned or controlled |
|
39,082 |
|
|
|
41,675 |
|
|
|
(2,593 |
) |
|
(6 |
)% |
|
|
|
|
|
|
|
|
Homes under construction (1) |
|
4,707 |
|
|
|
3,632 |
|
|
|
1,075 |
|
|
30 |
% |
|
|
|
|
|
|
|
|
Homes completed, unsold |
|
42 |
|
|
|
27 |
|
|
|
15 |
|
|
56 |
% |
|
|
|
|
|
|
|
|
Debt |
$ |
1,338,895 |
|
|
$ |
1,337,723 |
|
|
$ |
1,172 |
|
|
0 |
% |
|
|
|
|
|
|
|
|
Stockholders’ equity |
$ |
2,487,566 |
|
|
$ |
2,447,621 |
|
|
$ |
39,945 |
|
|
2 |
% |
|
|
|
|
|
|
|
|
Book capitalization |
$ |
3,826,461 |
|
|
$ |
3,785,344 |
|
|
$ |
41,117 |
|
|
1 |
% |
|
|
|
|
|
|
|
|
Ratio of debt-to-capital |
|
35.0 |
% |
|
|
35.3 |
% |
|
|
(0.3 |
)% |
|
|
|
|
|
|
|
|
|
|
Ratio of net debt-to-net capital* |
|
30.1 |
% |
|
|
21.1 |
% |
|
|
9.0 |
% |
|
|
|
|
|
|
|
|
|
|
__________(1)
Homes under
construction included 88 and 85 models at June 30, 2022 and
December 31, 2021,
respectively.* See
“Reconciliation of Non-GAAP Financial Measures”
CONSOLIDATED BALANCE SHEETS (in
thousands, except share and per share amounts)
|
June 30, |
|
December 31, |
|
|
2022 |
|
|
2021 |
Assets |
(unaudited) |
|
|
Cash and cash equivalents |
$ |
270,124 |
|
$ |
681,528 |
Receivables |
|
145,430 |
|
|
116,996 |
Real estate inventories |
|
3,490,321 |
|
|
3,054,743 |
Investments in unconsolidated entities |
|
131,399 |
|
|
118,095 |
Goodwill and other intangible assets, net |
|
156,603 |
|
|
156,603 |
Deferred tax assets, net |
|
57,095 |
|
|
57,096 |
Other assets |
|
163,686 |
|
|
151,162 |
Total assets |
$ |
4,414,658 |
|
$ |
4,336,223 |
|
|
|
|
Liabilities |
|
|
|
Accounts payable |
$ |
112,942 |
|
$ |
84,854 |
Accrued expenses and other liabilities |
|
474,202 |
|
|
466,013 |
Loans payable |
|
250,000 |
|
|
250,504 |
Senior notes |
|
1,088,895 |
|
|
1,087,219 |
Total liabilities |
|
1,926,039 |
|
|
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 June 30, 2022 and December 31,
2021, respectively |
|
— |
|
|
— |
Common stock, $0.01 par value, 500,000,000 shares authorized;
101,860,993 and 109,644,474 shares issued and outstanding at June
30, 2022 and December 31, 2021, respectively |
|
1,019 |
|
|
1,096 |
Additional paid-in capital |
|
— |
|
|
91,077 |
Retained earnings |
|
2,486,547 |
|
|
2,355,448 |
Total stockholders’ equity |
|
2,487,566 |
|
|
2,447,621 |
Noncontrolling interests |
|
1,053 |
|
|
12 |
Total equity |
|
2,488,619 |
|
|
2,447,633 |
Total liabilities and equity |
$ |
4,414,658 |
|
$ |
4,336,223 |
CONSOLIDATED STATEMENT OF
OPERATIONS (in thousands, except share and per share
amounts) (unaudited)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Homebuilding: |
|
|
|
|
|
|
|
Home sales revenue |
$ |
1,004,644 |
|
|
$ |
1,009,307 |
|
|
$ |
1,729,895 |
|
|
$ |
1,725,982 |
|
Land and lot sales revenue |
|
114 |
|
|
|
5,416 |
|
|
|
1,711 |
|
|
|
6,939 |
|
Other operations revenue |
|
703 |
|
|
|
660 |
|
|
|
1,347 |
|
|
|
1,323 |
|
Total revenues |
|
1,005,461 |
|
|
|
1,015,383 |
|
|
|
1,732,953 |
|
|
|
1,734,244 |
|
Cost of home sales |
|
731,352 |
|
|
|
761,215 |
|
|
|
1,262,012 |
|
|
|
1,306,571 |
|
Cost of land and lot sales |
|
344 |
|
|
|
4,874 |
|
|
|
819 |
|
|
|
5,027 |
|
Other operations expense |
|
704 |
|
|
|
686 |
|
|
|
1,350 |
|
|
|
1,310 |
|
Sales and marketing |
|
38,523 |
|
|
|
45,489 |
|
|
|
70,762 |
|
|
|
85,949 |
|
General and administrative |
|
56,829 |
|
|
|
51,263 |
|
|
|
105,285 |
|
|
|
92,612 |
|
Homebuilding income from operations |
|
177,709 |
|
|
|
151,856 |
|
|
|
292,725 |
|
|
|
242,775 |
|
Equity in income (loss) of unconsolidated entities |
|
143 |
|
|
|
(16 |
) |
|
|
88 |
|
|
|
(29 |
) |
Other income, net |
|
116 |
|
|
|
149 |
|
|
|
389 |
|
|
|
257 |
|
Homebuilding income before income taxes |
|
177,968 |
|
|
|
151,989 |
|
|
|
293,202 |
|
|
|
243,003 |
|
Financial
Services: |
|
|
|
|
|
|
|
Revenues |
|
12,228 |
|
|
|
2,681 |
|
|
|
20,980 |
|
|
|
4,786 |
|
Expenses |
|
6,322 |
|
|
|
1,485 |
|
|
|
11,630 |
|
|
|
2,892 |
|
Equity in income of unconsolidated entities |
|
— |
|
|
|
3,949 |
|
|
|
46 |
|
|
|
6,640 |
|
Financial services income before income taxes |
|
5,906 |
|
|
|
5,145 |
|
|
|
9,396 |
|
|
|
8,534 |
|
Income before income
taxes |
|
183,874 |
|
|
|
157,134 |
|
|
|
302,598 |
|
|
|
251,537 |
|
Provision for income
taxes |
|
(45,936 |
) |
|
|
(39,265 |
) |
|
|
(76,161 |
) |
|
|
(62,866 |
) |
Net income |
|
137,938 |
|
|
|
117,869 |
|
|
|
226,437 |
|
|
|
188,671 |
|
Net income attributable to
noncontrolling interests |
|
(1,555 |
) |
|
|
— |
|
|
|
(2,576 |
) |
|
|
— |
|
Net income available to common
stockholders |
$ |
136,383 |
|
|
$ |
117,869 |
|
|
$ |
223,861 |
|
|
$ |
188,671 |
|
Earnings per share |
|
|
|
|
|
|
|
Basic |
$ |
1.33 |
|
|
$ |
1.01 |
|
|
$ |
2.14 |
|
|
$ |
1.60 |
|
Diluted |
$ |
1.33 |
|
|
$ |
1.00 |
|
|
$ |
2.12 |
|
|
$ |
1.59 |
|
Weighted average shares
outstanding |
|
|
|
|
|
|
|
Basic |
|
102,164,377 |
|
|
|
116,824,108 |
|
|
|
104,731,388 |
|
|
|
118,082,691 |
|
Diluted |
|
102,787,919 |
|
|
|
117,770,084 |
|
|
|
105,478,446 |
|
|
|
118,921,340 |
|
MARKET DATA BY REPORTING SEGMENT &
GEOGRAPHY(dollars in thousands) (unaudited)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
NewHomesDelivered |
|
AverageSalesPrice |
|
NewHomesDelivered |
|
AverageSalesPrice |
|
NewHomesDelivered |
|
AverageSalesPrice |
|
NewHomesDelivered |
|
AverageSalesPrice |
Arizona |
127 |
|
$ |
732 |
|
223 |
|
$ |
652 |
|
197 |
|
$ |
733 |
|
383 |
|
$ |
658 |
California |
579 |
|
|
698 |
|
698 |
|
|
705 |
|
1,093 |
|
|
690 |
|
1,155 |
|
|
692 |
Nevada |
157 |
|
|
724 |
|
127 |
|
|
589 |
|
241 |
|
|
711 |
|
201 |
|
|
602 |
Washington |
54 |
|
|
1,092 |
|
69 |
|
|
968 |
|
126 |
|
|
1,023 |
|
147 |
|
|
985 |
West total |
917 |
|
|
731 |
|
1,117 |
|
|
697 |
|
1,657 |
|
|
723 |
|
1,886 |
|
|
698 |
Colorado |
76 |
|
|
682 |
|
59 |
|
|
568 |
|
119 |
|
|
662 |
|
99 |
|
|
582 |
Texas |
318 |
|
|
511 |
|
233 |
|
|
498 |
|
538 |
|
|
507 |
|
447 |
|
|
477 |
Central total |
394 |
|
|
544 |
|
292 |
|
|
512 |
|
657 |
|
|
535 |
|
546 |
|
|
496 |
Carolinas(1) |
44 |
|
|
462 |
|
21 |
|
|
407 |
|
72 |
|
|
458 |
|
39 |
|
|
381 |
Washington D.C. Area(2) |
130 |
|
|
770 |
|
115 |
|
|
628 |
|
198 |
|
|
744 |
|
200 |
|
|
618 |
East total |
174 |
|
|
692 |
|
136 |
|
|
594 |
|
270 |
|
|
668 |
|
239 |
|
|
579 |
Total |
1,485 |
|
$ |
677 |
|
1,545 |
|
$ |
653 |
|
2,584 |
|
$ |
669 |
|
2,671 |
|
$ |
646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
Arizona |
195 |
|
|
14.2 |
|
233 |
|
|
15.2 |
|
410 |
|
|
13.6 |
|
494 |
|
|
15.1 |
California |
601 |
|
|
49.2 |
|
630 |
|
|
39.0 |
|
1,302 |
|
|
44.7 |
|
1,320 |
|
|
38.6 |
Nevada |
116 |
|
|
7.3 |
|
180 |
|
|
11.3 |
|
261 |
|
|
8.0 |
|
435 |
|
|
11.6 |
Washington |
21 |
|
|
1.8 |
|
90 |
|
|
6.2 |
|
69 |
|
|
2.4 |
|
161 |
|
|
5.6 |
West total |
933 |
|
|
72.5 |
|
1,133 |
|
|
71.7 |
|
2,042 |
|
|
68.7 |
|
2,410 |
|
|
70.9 |
Colorado |
34 |
|
|
8.0 |
|
58 |
|
|
5.8 |
|
165 |
|
|
8.0 |
|
163 |
|
|
5.3 |
Texas |
153 |
|
|
22.0 |
|
278 |
|
|
22.0 |
|
568 |
|
|
22.1 |
|
707 |
|
|
23.0 |
Central total |
187 |
|
|
30.0 |
|
336 |
|
|
27.8 |
|
733 |
|
|
30.1 |
|
870 |
|
|
28.3 |
Carolinas(1) |
170 |
|
|
11.5 |
|
40 |
|
|
3.8 |
|
296 |
|
|
10.0 |
|
88 |
|
|
3.1 |
Washington D.C. Area(2) |
66 |
|
|
7.8 |
|
113 |
|
|
11.2 |
|
181 |
|
|
7.9 |
|
241 |
|
|
11.1 |
East total |
236 |
|
|
19.3 |
|
153 |
|
|
15.0 |
|
477 |
|
|
17.9 |
|
329 |
|
|
14.2 |
Total |
1,356 |
|
|
121.8 |
|
1,622 |
|
|
114.5 |
|
3,252 |
|
|
116.7 |
|
3,609 |
|
|
113.4 |
(1) Carolinas
comprises North Carolina and South Carolina.(2)
Washington D.C.
Area comprises Maryland, Virginia and the District of Columbia.
MARKET DATA BY REPORTING SEGMENT &
GEOGRAPHY, continued(dollars in thousands) (unaudited)
|
As of June 30, 2022 |
|
As of June 30, 2021 |
|
BacklogUnits |
|
BacklogDollarValue |
|
AverageSalesPrice |
|
BacklogUnits |
|
BacklogDollarValue |
|
AverageSalesPrice |
Arizona |
733 |
|
$ |
586,871 |
|
$ |
801 |
|
590 |
|
$ |
424,048 |
|
$ |
719 |
California |
1,245 |
|
|
1,128,517 |
|
|
906 |
|
1,423 |
|
|
921,602 |
|
|
648 |
Nevada |
346 |
|
|
279,679 |
|
|
808 |
|
370 |
|
|
245,895 |
|
|
665 |
Washington |
72 |
|
|
60,188 |
|
|
836 |
|
153 |
|
|
165,314 |
|
|
1,080 |
West total |
2,396 |
|
|
2,055,255 |
|
|
858 |
|
2,536 |
|
|
1,756,859 |
|
|
693 |
Colorado |
230 |
|
|
178,845 |
|
|
778 |
|
190 |
|
|
126,913 |
|
|
668 |
Texas |
666 |
|
|
408,415 |
|
|
613 |
|
758 |
|
|
372,381 |
|
|
491 |
Central total |
896 |
|
|
587,260 |
|
|
655 |
|
948 |
|
|
499,294 |
|
|
527 |
Carolinas(1) |
345 |
|
|
162,317 |
|
|
470 |
|
64 |
|
|
26,171 |
|
|
409 |
Washington D.C. Area(2) |
189 |
|
|
176,423 |
|
|
933 |
|
354 |
|
|
242,118 |
|
|
684 |
East total |
534 |
|
|
338,740 |
|
|
634 |
|
418 |
|
|
268,289 |
|
|
642 |
Total |
3,826 |
|
$ |
2,981,255 |
|
$ |
779 |
|
3,902 |
|
$ |
2,524,442 |
|
$ |
647 |
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
|
|
|
|
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
Lots Owned or
Controlled: |
|
|
|
|
|
|
|
|
|
|
|
Arizona |
3,522 |
|
|
4,607 |
|
|
|
|
|
|
|
|
California |
13,588 |
|
|
15,091 |
|
|
|
|
|
|
|
|
Nevada |
2,064 |
|
|
2,161 |
|
|
|
|
|
|
|
|
Washington |
937 |
|
|
1,010 |
|
|
|
|
|
|
|
|
West total |
20,111 |
|
|
22,869 |
|
|
|
|
|
|
|
|
Colorado |
2,045 |
|
|
1,683 |
|
|
|
|
|
|
|
|
Texas |
11,321 |
|
|
12,297 |
|
|
|
|
|
|
|
|
Central total |
13,366 |
|
|
13,980 |
|
|
|
|
|
|
|
|
Carolinas(1) |
4,075 |
|
|
3,458 |
|
|
|
|
|
|
|
|
Washington D.C. Area(2) |
1,530 |
|
|
1,368 |
|
|
|
|
|
|
|
|
East total |
5,605 |
|
|
4,826 |
|
|
|
|
|
|
|
|
Total |
39,082 |
|
|
41,675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
|
|
|
|
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
Lots by Ownership
Type: |
|
|
|
|
|
|
|
|
|
|
|
Lots owned |
21,579 |
|
|
22,136 |
|
|
|
|
|
|
|
|
Lots controlled (3) |
17,503 |
|
|
19,539 |
|
|
|
|
|
|
|
|
Total |
39,082 |
|
|
41,675 |
|
|
|
|
|
|
|
|
(1) Carolinas
comprises North Carolina and South Carolina.(2)
Washington D.C.
Area comprises Maryland, Virginia and the District of Columbia.(3)
As of June 30,
2022 and December 31, 2021, lots controlled included lots that
were under land option contracts or purchase contracts. As of
June 30, 2022 and December 31, 2021, lots controlled for
Central include 3,447 and 2,950 lots, respectively, and lots
controlled for East include 157 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 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 June 30, |
|
|
2022 |
|
|
% |
|
|
2021 |
|
|
% |
|
(dollars in thousands) |
Home sales revenue |
$ |
1,004,644 |
|
|
100.0 |
% |
|
$ |
1,009,307 |
|
|
100.0 |
% |
Cost of home sales |
|
731,352 |
|
|
72.8 |
% |
|
|
761,215 |
|
|
75.4 |
% |
Homebuilding gross margin |
|
273,292 |
|
|
27.2 |
% |
|
|
248,092 |
|
|
24.6 |
% |
Add: interest in cost of home sales |
|
24,963 |
|
|
2.5 |
% |
|
|
30,851 |
|
|
3.1 |
% |
Add: impairments and lot option abandonments |
|
972 |
|
|
0.1 |
% |
|
|
232 |
|
|
0.0 |
% |
Adjusted homebuilding gross
margin |
$ |
299,227 |
|
|
29.8 |
% |
|
$ |
279,175 |
|
|
27.7 |
% |
Homebuilding gross margin
percentage |
|
27.2 |
% |
|
|
|
|
24.6 |
% |
|
|
Adjusted homebuilding gross
margin percentage |
|
29.8 |
% |
|
|
|
|
27.7 |
% |
|
|
|
Six Months Ended June 30, |
|
|
2022 |
|
|
% |
|
|
2021 |
|
|
% |
Home sales revenue |
$ |
1,729,895 |
|
|
100.0 |
% |
|
$ |
1,725,982 |
|
|
100.0 |
% |
Cost of home sales |
|
1,262,012 |
|
|
73.0 |
% |
|
|
1,306,571 |
|
|
75.7 |
% |
Homebuilding gross margin |
|
467,883 |
|
|
27.0 |
% |
|
|
419,411 |
|
|
24.3 |
% |
Add: interest in cost of home sales |
|
42,028 |
|
|
2.4 |
% |
|
|
51,529 |
|
|
3.0 |
% |
Add: impairments and lot option abandonments |
|
1,461 |
|
|
0.1 |
% |
|
|
445 |
|
|
0.0 |
% |
Adjusted homebuilding gross
margin |
$ |
511,372 |
|
|
29.6 |
% |
|
$ |
471,385 |
|
|
27.3 |
% |
Homebuilding gross margin
percentage |
|
27.0 |
% |
|
|
|
|
24.3 |
% |
|
|
Adjusted homebuilding gross
margin percentage |
|
29.6 |
% |
|
|
|
|
27.3 |
% |
|
|
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.
|
June 30, 2022 |
|
December 31, 2021 |
Loans payable |
$ |
250,000 |
|
|
$ |
250,504 |
|
Senior notes |
|
1,088,895 |
|
|
|
1,087,219 |
|
Total debt |
|
1,338,895 |
|
|
|
1,337,723 |
|
Stockholders’ equity |
|
2,487,566 |
|
|
|
2,447,621 |
|
Total capital |
$ |
3,826,461 |
|
|
$ |
3,785,344 |
|
Ratio of
debt-to-capital(1) |
|
35.0 |
% |
|
|
35.3 |
% |
|
|
|
|
Total debt |
$ |
1,338,895 |
|
|
$ |
1,337,723 |
|
Less: Cash and cash
equivalents |
|
(270,124 |
) |
|
|
(681,528 |
) |
Net debt |
|
1,068,771 |
|
|
|
656,195 |
|
Stockholders’ equity |
|
2,487,566 |
|
|
|
2,447,621 |
|
Net capital |
$ |
3,556,337 |
|
|
$ |
3,103,816 |
|
Ratio of net debt-to-net
capital(2) |
|
30.1 |
% |
|
|
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 available to common stockholders, 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 June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(in thousands) |
Net income available to common
stockholders |
$ |
136,383 |
|
|
$ |
117,869 |
|
|
$ |
223,861 |
|
|
$ |
188,671 |
|
Interest expense: |
|
|
|
|
|
|
|
Interest incurred |
|
28,789 |
|
|
|
22,558 |
|
|
|
57,342 |
|
|
|
43,737 |
|
Interest capitalized |
|
(28,789 |
) |
|
|
(22,558 |
) |
|
|
(57,342 |
) |
|
|
(43,737 |
) |
Amortization of interest in cost of sales |
|
24,963 |
|
|
|
31,124 |
|
|
|
42,028 |
|
|
|
51,802 |
|
Provision for income taxes |
|
45,936 |
|
|
|
39,265 |
|
|
|
76,161 |
|
|
|
62,866 |
|
Depreciation and amortization |
|
6,741 |
|
|
|
8,990 |
|
|
|
12,026 |
|
|
|
16,120 |
|
EBITDA |
|
214,023 |
|
|
|
197,248 |
|
|
|
354,076 |
|
|
|
319,459 |
|
Amortization of stock-based compensation |
|
5,751 |
|
|
|
4,506 |
|
|
|
11,023 |
|
|
|
8,162 |
|
Impairments and lot option abandonments |
|
1,131 |
|
|
|
232 |
|
|
|
1,897 |
|
|
|
445 |
|
Adjusted EBITDA |
$ |
220,905 |
|
|
$ |
201,986 |
|
|
$ |
366,996 |
|
|
$ |
328,066 |
|
TRI Pointe Homes (NYSE:TPH)
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TRI Pointe Homes (NYSE:TPH)
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