Tri Pointe Homes, Inc. (the “Company”) (NYSE:TPH) today announced
results for the second quarter ended June 30, 2023.
“Tri Pointe delivered strong results for the second quarter,
surpassing our delivery guidance and leading to home sales revenue
of $819 million while generating $61 million in net income
available to common stockholders, or $0.60 per diluted share,” said
Doug Bauer, Tri Pointe Homes Chief Executive Officer. “The healthy
buyer demand we saw in the first part of the year continued a
strong seasonal trend through the second quarter, resulting in a
41% increase in net new home orders compared to the same prior-year
period, and an 18% increase sequentially from the first quarter of
2023. We attribute these outstanding results to several underlying
factors fueling today’s housing market, the foremost of which is
the persistent limited supply of overall housing that falls short
of current demand. This demand is largely being powered by a
combination of new household formations, the entry of Gen Z into
the home-buying market, and Millennials reaching their prime
home-buying age. Additionally, with stabilized mortgage rates,
consumers have adjusted to mid-six to low-seven percent interest
rates, setting a new normal in the market.”
Mr. Bauer continued, “An important component to the
supply/demand equation is the scarcity of resale home supply, with
reports indicating that new listings are down nationwide by 27% due
to the significant number of existing homebuyers who are not
selling as a result of their locked-in rates which are well below
current levels. This scarcity of resale homes has significantly
boosted the homebuilding industry’s market share, with newly
constructed homes making up 33% of inventory compared to the
typical 13% average, as reported by the National Association of
Home Builders.”
“Demand for the quarter was broad-based across our geographic
footprint with an absorption rate of 4.5 homes per community per
month. In addition, we raised net pricing at 73% of our selling
communities during the quarter, while expanding our ending
community count by 18%,” said Tri Pointe Homes President and Chief
Operating Officer Tom Mitchell. “As the homebuilding industry gains
momentum, driven by favorable market dynamics and demographic
factors, we remain committed to enhancing operational efficiencies,
fostering our company culture, and continuously innovating our
product offerings to cater to the evolving lifestyles of today’s
discerning consumers.”
Mr. Bauer concluded, “As we enter the second half of 2023, we
believe that our industry’s share of the housing market will
continue to increase and that the current supply/demand imbalance
will continue into the foreseeable future. Through the rest of the
year, we will continue to prioritize operational efficiency and
cost management as supply chains continue to normalize.
Furthermore, our balance sheet and liquidity reached record levels,
allowing us flexibility in our efforts to balance growth and
shareholder returns.”
Results and Operational Data for Second
Quarter 2023 and Comparisons to Second Quarter 2022
- Net income
available to common stockholders was $60.7 million, or $0.60 per
diluted share, compared to $136.4 million, or $1.33 per diluted
share
- Home sales revenue
of $819.1 million compared to $1.0 billion, a decrease of 18%
- New home deliveries
of 1,173 homes compared to 1,485 homes, a decrease of 21%
- Average sales price
of homes delivered of $698,000 compared to $677,000, an increase of
3%
- Homebuilding gross
margin percentage of 20.4% compared to 27.2%, a decrease of 680
basis points. The current year period includes an $11.5 million
impairment related to a single community in the Bay Area of
California.
- Excluding interest
and impairments and lot option abandonments, adjusted homebuilding
gross margin percentage was 24.9%*
- SG&A expense as
a percentage of homes sales revenue of 11.9% compared to 9.5%, an
increase of 240 basis points
- Net new home orders
of 1,912 compared to 1,356, an increase of 41%
- Active selling
communities averaged 140.3 compared to 121.8, an increase of 15%
- Net new home orders
per average selling community were 13.6 orders (4.5 monthly)
compared to 11.1 orders (3.7 monthly)
- Cancellation rate
of 8% compared to 16%
- Backlog units at
quarter end of 2,765 homes compared to 3,826, a decrease of 28%
- Dollar value of
backlog at quarter end of $1.9 billion compared to $3.0 billion, a
decrease of 36%
- Average sales price
of homes in backlog at quarter end of $695,000 compared to
$779,000, a decrease of 11%
- Ratios of
debt-to-capital and net debt-to-net capital of 32.3% and 12.1%*,
respectively, as of June 30, 2023
- Repurchased
1,137,478 shares of common stock at a weighted average price per
share of $28.43 for an aggregate dollar amount of $32.3 million in
the three months ended June 30, 2023
- Ended the second
quarter of 2023 with total liquidity of $1.7 billion, including
cash and cash equivalents of $981.6 million and $695.0 million of
availability under our revolving credit facility
* |
See “Reconciliation of Non-GAAP
Financial Measures” |
Outlook
For the third quarter, the Company anticipates delivering
between 1,000 and 1,100 homes at an average sales price between
$690,000 and $700,000. The Company expects homebuilding gross
margin percentage to be in the range of 21.0% to 22.0% for the
third quarter and anticipates its SG&A expense as a percentage
of home sales revenue will be in the range of 12.0% to 13.0%.
Finally, the Company expects its effective tax rate for the third
quarter to be in the range of 26.0% to 27.0%.
For the full year, the Company anticipates delivering between
5,000 and 5,300 homes at an average sales price between $690,000
and $700,000. The Company expects homebuilding gross margin
percentage to be in the range of 21.5% to 22.5% for the full year
and anticipates its SG&A expense as a percentage of home sales
revenue will be in the range of 10.5% to 11.5%. Finally, the
Company expects its effective tax rate for the full year to be in
the range of 26.0% to 27.0%.
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, July 27, 2023. The call will be
hosted by Doug Bauer, Chief Executive Officer, Tom Mitchell,
President and Chief Operating Officer, Glenn Keeler, Chief
Financial Officer, and Linda Mamet, Chief Marketing 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 2023 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 13739744. 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, was named one of the 2023 Fortune 100 Best Companies
to Work For®, and made Fortune magazine’s 2017 100 Fastest-Growing
Companies list. The company was also named as a Great Place to
Work-Certified™ company for three years in a row 2021–2023, and was
named on several Great Place to Work® Best Workplaces lists in 2022
and 2023. 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 general economic
conditions, including employment rates, housing starts, interest
rate levels, home affordability, inflation, consumer sentiment,
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;
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, labor and home components; 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 parts of
the western United States; 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 public health
emergencies, including outbreaks of contagious disease, 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:InvestorRelations@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, |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
% Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
% Change |
Operating Data: |
(unaudited) |
Home sales revenue |
$ |
819,077 |
|
|
$ |
1,004,644 |
|
|
$ |
(185,567 |
) |
|
(18 |
)% |
|
$ |
1,587,482 |
|
|
$ |
1,729,895 |
|
|
$ |
(142,413 |
) |
|
(8 |
)% |
Homebuilding gross margin |
$ |
167,078 |
|
|
$ |
273,292 |
|
|
$ |
(106,214 |
) |
|
(39 |
)% |
|
$ |
347,365 |
|
|
$ |
467,883 |
|
|
$ |
(120,518 |
) |
|
(26 |
)% |
Homebuilding gross margin % |
|
20.4 |
% |
|
|
27.2 |
% |
|
|
(6.8 |
)% |
|
|
|
|
21.9 |
% |
|
|
27.0 |
% |
|
(5.1 |
)% |
|
|
Adjusted homebuilding gross margin %* |
|
24.9 |
% |
|
|
29.8 |
% |
|
|
(4.9 |
)% |
|
|
|
|
25.5 |
% |
|
|
29.6 |
% |
|
(4.1 |
)% |
|
|
SG&A expense |
$ |
97,465 |
|
|
$ |
95,352 |
|
|
$ |
2,113 |
|
|
2 |
% |
|
$ |
185,693 |
|
|
$ |
176,047 |
|
|
$ |
9,646 |
|
|
5 |
% |
SG&A expense as a % of home sales revenue |
|
11.9 |
% |
|
|
9.5 |
% |
|
|
2.4 |
% |
|
|
|
|
11.7 |
% |
|
|
10.2 |
% |
|
|
1.5 |
% |
|
|
Net income available to common stockholders |
$ |
60,724 |
|
|
$ |
136,383 |
|
|
$ |
(75,659 |
) |
|
(55 |
)% |
|
$ |
135,466 |
|
|
$ |
223,861 |
|
|
$ |
(88,395 |
) |
|
(39 |
)% |
Adjusted EBITDA* |
$ |
129,928 |
|
|
$ |
220,905 |
|
|
$ |
(90,977 |
) |
|
(41 |
)% |
|
$ |
263,903 |
|
|
$ |
366,996 |
|
|
$ |
(103,093 |
) |
|
(28 |
)% |
Interest incurred |
$ |
37,394 |
|
|
$ |
28,789 |
|
|
$ |
8,605 |
|
|
30 |
% |
|
$ |
74,873 |
|
|
$ |
57,342 |
|
|
$ |
17,531 |
|
|
31 |
% |
Interest in cost of home sales |
$ |
25,366 |
|
|
$ |
24,963 |
|
|
$ |
403 |
|
|
2 |
% |
|
$ |
45,592 |
|
|
$ |
42,028 |
|
|
$ |
3,564 |
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net new home orders |
|
1,912 |
|
|
|
1,356 |
|
|
|
556 |
|
|
41 |
% |
|
|
3,531 |
|
|
|
3,252 |
|
|
|
279 |
|
|
9 |
% |
New homes delivered |
|
1,173 |
|
|
|
1,485 |
|
|
|
(312 |
) |
|
(21 |
)% |
|
|
2,238 |
|
|
|
2,584 |
|
|
|
(346 |
) |
|
(13 |
)% |
Average sales price of homes delivered |
$ |
698 |
|
|
$ |
677 |
|
|
$ |
21 |
|
|
3 |
% |
|
$ |
709 |
|
|
$ |
669 |
|
|
$ |
40 |
|
|
6 |
% |
Cancellation rate |
|
8 |
% |
|
|
16 |
% |
|
(8 |
)% |
|
|
|
|
9 |
% |
|
|
11 |
% |
|
(2 |
)% |
|
|
Average selling communities |
|
140.3 |
|
|
|
121.8 |
|
|
|
18.5 |
|
|
15 |
% |
|
|
138.4 |
|
|
|
116.7 |
|
|
|
21.7 |
|
|
19 |
% |
Selling communities at end of period |
|
145 |
|
|
|
123 |
|
|
|
22 |
|
|
18 |
% |
|
|
|
|
|
|
|
|
Backlog (estimated dollar value) |
$ |
1,922,895 |
|
|
$ |
2,981,255 |
|
|
$ |
(1,058,360 |
) |
|
(36 |
)% |
|
|
|
|
|
|
|
|
Backlog (homes) |
|
2,765 |
|
|
|
3,826 |
|
|
|
(1,061 |
) |
|
(28 |
)% |
|
|
|
|
|
|
|
|
Average sales price in backlog |
$ |
695 |
|
|
$ |
779 |
|
|
$ |
(84 |
) |
|
(11 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
Balance Sheet Data: |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
981,567 |
|
|
$ |
889,664 |
|
|
$ |
91,903 |
|
|
10 |
% |
|
|
|
|
|
|
|
|
Real estate inventories |
$ |
3,193,328 |
|
|
$ |
3,173,849 |
|
|
$ |
19,479 |
|
|
1 |
% |
|
|
|
|
|
|
|
|
Lots owned or controlled |
|
32,834 |
|
|
|
33,794 |
|
|
|
(960 |
) |
|
(3 |
)% |
|
|
|
|
|
|
|
|
Homes under construction (1) |
|
3,131 |
|
|
|
2,373 |
|
|
|
758 |
|
|
32 |
% |
|
|
|
|
|
|
|
|
Homes completed, unsold |
|
168 |
|
|
|
288 |
|
|
|
(120 |
) |
|
(42 |
)% |
|
|
|
|
|
|
|
|
Debt |
$ |
1,379,835 |
|
|
$ |
1,378,051 |
|
|
$ |
1,784 |
|
|
0 |
% |
|
|
|
|
|
|
|
|
Stockholders’ equity |
$ |
2,896,111 |
|
|
$ |
2,832,389 |
|
|
$ |
63,722 |
|
|
2 |
% |
|
|
|
|
|
|
|
|
Book capitalization |
$ |
4,275,946 |
|
|
$ |
4,210,440 |
|
|
$ |
65,506 |
|
|
2 |
% |
|
|
|
|
|
|
|
|
Ratio of debt-to-capital |
|
32.3 |
% |
|
|
32.7 |
% |
|
(0.4 |
)% |
|
|
|
|
|
|
|
|
|
|
Ratio of net debt-to-net capital* |
|
12.1 |
% |
|
|
14.7 |
% |
|
(2.6 |
)% |
|
|
|
|
|
|
|
|
|
|
__________(1)
Homes under
construction included 66 and 78 models as of June 30, 2023 and
December 31, 2022, respectively.*
See “Reconciliation of Non-GAAP Financial Measures”
CONSOLIDATED BALANCE SHEETS (in
thousands, except share and per share amounts)
|
June 30, |
|
December 31, |
|
|
2023 |
|
|
2022 |
Assets |
(unaudited) |
|
|
Cash and cash equivalents |
$ |
981,567 |
|
$ |
889,664 |
Receivables |
|
117,134 |
|
|
169,449 |
Real estate inventories |
|
3,193,328 |
|
|
3,173,849 |
Investments in unconsolidated entities |
|
139,959 |
|
|
129,837 |
Goodwill and other intangible assets, net |
|
156,603 |
|
|
156,603 |
Deferred tax assets, net |
|
34,850 |
|
|
34,851 |
Other assets |
|
157,118 |
|
|
165,687 |
Total assets |
$ |
4,780,559 |
|
$ |
4,719,940 |
|
|
|
|
Liabilities |
|
|
|
Accounts payable |
$ |
78,386 |
|
$ |
62,324 |
Accrued expenses and other liabilities |
|
425,518 |
|
|
443,034 |
Loans payable |
|
287,427 |
|
|
287,427 |
Senior notes |
|
1,092,408 |
|
|
1,090,624 |
Total liabilities |
|
1,883,739 |
|
|
1,883,409 |
|
|
|
|
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, 2023 and December 31,
2022, respectively |
|
— |
|
|
— |
Common stock, $0.01 par value, 500,000,000 shares authorized;
99,094,458 and 101,017,708 shares issued and outstanding at June
30, 2023 and December 31, 2022, respectively |
|
991 |
|
|
1,010 |
Additional paid-in capital |
|
— |
|
|
3,685 |
Retained earnings |
|
2,895,120 |
|
|
2,827,694 |
Total stockholders’ equity |
|
2,896,111 |
|
|
2,832,389 |
Noncontrolling interests |
|
709 |
|
|
4,142 |
Total equity |
|
2,896,820 |
|
|
2,836,531 |
Total liabilities and equity |
$ |
4,780,559 |
|
$ |
4,719,940 |
CONSOLIDATED STATEMENT OF
OPERATIONS (in thousands, except share and per share
amounts) (unaudited)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Homebuilding: |
|
|
|
|
|
|
|
Home sales revenue |
$ |
819,077 |
|
|
$ |
1,004,644 |
|
|
$ |
1,587,482 |
|
|
$ |
1,729,895 |
|
Land and lot sales revenue |
|
7,086 |
|
|
|
114 |
|
|
|
8,792 |
|
|
|
1,711 |
|
Other operations revenue |
|
796 |
|
|
|
703 |
|
|
|
1,470 |
|
|
|
1,347 |
|
Total revenues |
|
826,959 |
|
|
|
1,005,461 |
|
|
|
1,597,744 |
|
|
|
1,732,953 |
|
Cost of home sales |
|
651,999 |
|
|
|
731,352 |
|
|
|
1,240,117 |
|
|
|
1,262,012 |
|
Cost of land and lot sales |
|
7,370 |
|
|
|
344 |
|
|
|
8,813 |
|
|
|
819 |
|
Other operations expense |
|
782 |
|
|
|
704 |
|
|
|
1,447 |
|
|
|
1,350 |
|
Sales and marketing |
|
43,241 |
|
|
|
38,523 |
|
|
|
85,103 |
|
|
|
70,762 |
|
General and administrative |
|
54,224 |
|
|
|
56,829 |
|
|
|
100,590 |
|
|
|
105,285 |
|
Homebuilding income from operations |
|
69,343 |
|
|
|
177,709 |
|
|
|
161,674 |
|
|
|
292,725 |
|
Equity in income of unconsolidated entities |
|
42 |
|
|
|
143 |
|
|
|
269 |
|
|
|
88 |
|
Other income, net |
|
11,093 |
|
|
|
116 |
|
|
|
18,697 |
|
|
|
389 |
|
Homebuilding income before income taxes |
|
80,478 |
|
|
|
177,968 |
|
|
|
180,640 |
|
|
|
293,202 |
|
Financial
Services: |
|
|
|
|
|
|
|
Revenues |
|
10,370 |
|
|
|
12,228 |
|
|
|
19,246 |
|
|
|
20,980 |
|
Expenses |
|
7,405 |
|
|
|
6,322 |
|
|
|
13,236 |
|
|
|
11,630 |
|
Equity in income of unconsolidated entities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46 |
|
Financial services income before income taxes |
|
2,965 |
|
|
|
5,906 |
|
|
|
6,010 |
|
|
|
9,396 |
|
Income before income
taxes |
|
83,443 |
|
|
|
183,874 |
|
|
|
186,650 |
|
|
|
302,598 |
|
Provision for income
taxes |
|
(21,472 |
) |
|
|
(45,936 |
) |
|
|
(48,822 |
) |
|
|
(76,161 |
) |
Net income |
|
61,971 |
|
|
|
137,938 |
|
|
|
137,828 |
|
|
|
226,437 |
|
Net income attributable to
noncontrolling interests |
|
(1,247 |
) |
|
|
(1,555 |
) |
|
|
(2,362 |
) |
|
|
(2,576 |
) |
Net income available to common
stockholders |
$ |
60,724 |
|
|
$ |
136,383 |
|
|
$ |
135,466 |
|
|
$ |
223,861 |
|
Earnings per share |
|
|
|
|
|
|
|
Basic |
$ |
0.61 |
|
|
$ |
1.33 |
|
|
$ |
1.35 |
|
|
$ |
2.14 |
|
Diluted |
$ |
0.60 |
|
|
$ |
1.33 |
|
|
$ |
1.34 |
|
|
$ |
2.12 |
|
Weighted average shares
outstanding |
|
|
|
|
|
|
|
Basic |
|
99,598,933 |
|
|
|
102,164,377 |
|
|
|
100,305,168 |
|
|
|
104,731,388 |
|
Diluted |
|
100,634,964 |
|
|
|
102,787,919 |
|
|
|
101,184,993 |
|
|
|
105,478,446 |
|
MARKET DATA BY REPORTING SEGMENT &
GEOGRAPHY(dollars in thousands) (unaudited)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
NewHomesDelivered |
|
AverageSalesPrice |
|
NewHomesDelivered |
|
AverageSalesPrice |
|
NewHomesDelivered |
|
AverageSalesPrice |
|
NewHomesDelivered |
|
AverageSalesPrice |
Arizona |
195 |
|
$ |
765 |
|
127 |
|
$ |
732 |
|
330 |
|
$ |
773 |
|
197 |
|
$ |
733 |
California |
352 |
|
|
798 |
|
579 |
|
|
698 |
|
691 |
|
|
813 |
|
1,093 |
|
|
690 |
Nevada |
88 |
|
|
743 |
|
157 |
|
|
724 |
|
186 |
|
|
753 |
|
241 |
|
|
711 |
Washington |
40 |
|
|
733 |
|
54 |
|
|
1,092 |
|
58 |
|
|
802 |
|
126 |
|
|
1,023 |
West total |
675 |
|
|
778 |
|
917 |
|
|
731 |
|
1,265 |
|
|
793 |
|
1,657 |
|
|
723 |
Colorado |
49 |
|
|
732 |
|
76 |
|
|
682 |
|
93 |
|
|
758 |
|
119 |
|
|
662 |
Texas |
278 |
|
|
560 |
|
318 |
|
|
511 |
|
488 |
|
|
588 |
|
538 |
|
|
507 |
Central total |
327 |
|
|
586 |
|
394 |
|
|
544 |
|
581 |
|
|
615 |
|
657 |
|
|
535 |
Carolinas(1) |
142 |
|
|
483 |
|
44 |
|
|
462 |
|
317 |
|
|
458 |
|
72 |
|
|
458 |
Washington D.C. Area(2) |
29 |
|
|
1,176 |
|
130 |
|
|
770 |
|
75 |
|
|
1,082 |
|
198 |
|
|
744 |
East total |
171 |
|
|
600 |
|
174 |
|
|
692 |
|
392 |
|
|
577 |
|
270 |
|
|
668 |
Total |
1,173 |
|
$ |
698 |
|
1,485 |
|
$ |
677 |
|
2,238 |
|
$ |
709 |
|
2,584 |
|
$ |
669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
Arizona |
189 |
|
|
13.7 |
|
195 |
|
|
14.2 |
|
306 |
|
|
13.4 |
|
410 |
|
|
13.6 |
California |
787 |
|
|
49.2 |
|
601 |
|
|
49.2 |
|
1,488 |
|
|
51.6 |
|
1,302 |
|
|
44.7 |
Nevada |
105 |
|
|
8.0 |
|
116 |
|
|
7.3 |
|
189 |
|
|
7.6 |
|
261 |
|
|
8.0 |
Washington |
70 |
|
|
5.8 |
|
21 |
|
|
1.8 |
|
122 |
|
|
5.4 |
|
69 |
|
|
2.4 |
West total |
1,151 |
|
|
76.7 |
|
933 |
|
|
72.5 |
|
2,105 |
|
|
78.0 |
|
2,042 |
|
|
68.7 |
Colorado |
38 |
|
|
6.8 |
|
34 |
|
|
8.0 |
|
79 |
|
|
6.4 |
|
165 |
|
|
8.0 |
Texas |
494 |
|
|
39.0 |
|
153 |
|
|
22.0 |
|
808 |
|
|
36.1 |
|
568 |
|
|
22.1 |
Central total |
532 |
|
|
45.8 |
|
187 |
|
|
30.0 |
|
887 |
|
|
42.5 |
|
733 |
|
|
30.1 |
Carolinas(1) |
188 |
|
|
14.3 |
|
170 |
|
|
11.5 |
|
439 |
|
|
14.5 |
|
296 |
|
|
10.0 |
Washington D.C. Area(2) |
41 |
|
|
3.5 |
|
66 |
|
|
7.8 |
|
100 |
|
|
3.4 |
|
181 |
|
|
7.9 |
East total |
229 |
|
|
17.8 |
|
236 |
|
|
19.3 |
|
539 |
|
|
17.9 |
|
477 |
|
|
17.9 |
Total |
1,912 |
|
|
140.3 |
|
1,356 |
|
|
121.8 |
|
3,531 |
|
|
138.4 |
|
3,252 |
|
|
116.7 |
(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, 2023 |
|
As of June 30, 2022 |
|
BacklogUnits |
|
BacklogDollarValue |
|
AverageSalesPrice |
|
BacklogUnits |
|
BacklogDollarValue |
|
AverageSalesPrice |
Arizona |
354 |
|
$ |
276,167 |
|
$ |
780 |
|
733 |
|
$ |
586,871 |
|
$ |
801 |
California |
1,095 |
|
|
797,480 |
|
|
728 |
|
1,245 |
|
|
1,128,517 |
|
|
906 |
Nevada |
128 |
|
|
94,278 |
|
|
737 |
|
346 |
|
|
279,679 |
|
|
808 |
Washington |
99 |
|
|
91,266 |
|
|
922 |
|
72 |
|
|
60,188 |
|
|
836 |
West total |
1,676 |
|
|
1,259,191 |
|
|
751 |
|
2,396 |
|
|
2,055,255 |
|
|
858 |
Colorado |
36 |
|
|
24,889 |
|
|
691 |
|
230 |
|
|
178,845 |
|
|
778 |
Texas |
602 |
|
|
340,938 |
|
|
566 |
|
666 |
|
|
408,415 |
|
|
613 |
Central total |
638 |
|
|
365,827 |
|
|
573 |
|
896 |
|
|
587,260 |
|
|
655 |
Carolinas(1) |
342 |
|
|
156,759 |
|
|
458 |
|
345 |
|
|
162,317 |
|
|
470 |
Washington D.C. Area(2) |
109 |
|
|
141,118 |
|
|
1,295 |
|
189 |
|
|
176,423 |
|
|
933 |
East total |
451 |
|
|
297,877 |
|
|
660 |
|
534 |
|
|
338,740 |
|
|
634 |
Total |
2,765 |
|
$ |
1,922,895 |
|
$ |
695 |
|
3,826 |
|
$ |
2,981,255 |
|
$ |
779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Lots Owned or
Controlled: |
|
|
|
|
|
|
|
|
|
|
|
Arizona |
2,520 |
|
|
2,901 |
|
|
|
|
|
|
|
|
California |
11,123 |
|
|
11,399 |
|
|
|
|
|
|
|
|
Nevada |
1,914 |
|
|
1,634 |
|
|
|
|
|
|
|
|
Washington |
827 |
|
|
827 |
|
|
|
|
|
|
|
|
West total |
16,384 |
|
|
16,761 |
|
|
|
|
|
|
|
|
Colorado |
1,749 |
|
|
1,600 |
|
|
|
|
|
|
|
|
Texas |
9,951 |
|
|
10,361 |
|
|
|
|
|
|
|
|
Central total |
11,700 |
|
|
11,961 |
|
|
|
|
|
|
|
|
Carolinas(1) |
3,525 |
|
|
3,857 |
|
|
|
|
|
|
|
|
Washington D.C. Area(2) |
1,225 |
|
|
1,215 |
|
|
|
|
|
|
|
|
East total |
4,750 |
|
|
5,072 |
|
|
|
|
|
|
|
|
Total |
32,834 |
|
|
33,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Lots by Ownership
Type: |
|
|
|
|
|
|
|
|
|
|
|
Lots owned |
18,378 |
|
|
18,762 |
|
|
|
|
|
|
|
|
Lots controlled (3) |
14,456 |
|
|
15,032 |
|
|
|
|
|
|
|
|
Total |
32,834 |
|
|
33,794 |
|
|
|
|
|
|
|
|
(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,
2023 and December 31, 2022, lots controlled included lots that
were under land option contracts or purchase contracts. As of
June 30, 2023 and December 31, 2022, lots controlled for
Central include 3,685 and 3,325 lots, respectively, and lots
controlled for East include 93 and 141 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 the 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, |
|
|
2023 |
|
|
% |
|
|
2022 |
|
|
% |
|
(dollars in thousands) |
Home sales revenue |
$ |
819,077 |
|
|
100.0 |
% |
|
$ |
1,004,644 |
|
|
100.0 |
% |
Cost of home sales |
|
651,999 |
|
|
79.6 |
% |
|
|
731,352 |
|
|
72.8 |
% |
Homebuilding gross margin |
|
167,078 |
|
|
20.4 |
% |
|
|
273,292 |
|
|
27.2 |
% |
Add: interest in cost of home sales |
|
25,366 |
|
|
3.1 |
% |
|
|
24,963 |
|
|
2.5 |
% |
Add: impairments and lot option abandonments |
|
11,761 |
|
|
1.4 |
% |
|
|
972 |
|
|
0.1 |
% |
Adjusted homebuilding gross
margin |
$ |
204,205 |
|
|
24.9 |
% |
|
$ |
299,227 |
|
|
29.8 |
% |
Homebuilding gross margin
percentage |
|
20.4 |
% |
|
|
|
|
27.2 |
% |
|
|
Adjusted homebuilding gross
margin percentage |
|
24.9 |
% |
|
|
|
|
29.8 |
% |
|
|
|
Six Months Ended June 30, |
|
|
2023 |
|
|
% |
|
|
2022 |
|
|
% |
|
(dollars in thousands) |
Home sales revenue |
$ |
1,587,482 |
|
|
100.0 |
% |
|
$ |
1,729,895 |
|
|
100.0 |
% |
Cost of home sales |
|
1,240,117 |
|
|
78.1 |
% |
|
|
1,262,012 |
|
|
73.0 |
% |
Homebuilding gross margin |
|
347,365 |
|
|
21.9 |
% |
|
|
467,883 |
|
|
27.0 |
% |
Add: interest in cost of home sales |
|
45,592 |
|
|
2.9 |
% |
|
|
42,028 |
|
|
2.4 |
% |
Add: impairments and lot option abandonments |
|
12,478 |
|
|
0.8 |
% |
|
|
1,461 |
|
|
0.1 |
% |
Adjusted homebuilding gross
margin |
$ |
405,435 |
|
|
25.5 |
% |
|
$ |
511,372 |
|
|
29.6 |
% |
Homebuilding gross margin
percentage |
|
21.9 |
% |
|
|
|
|
27.0 |
% |
|
|
Adjusted homebuilding gross
margin percentage |
|
25.5 |
% |
|
|
|
|
29.6 |
% |
|
|
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, 2023 |
|
December 31, 2022 |
Loans payable |
$ |
287,427 |
|
|
$ |
287,427 |
|
Senior notes |
|
1,092,408 |
|
|
|
1,090,624 |
|
Total debt |
|
1,379,835 |
|
|
|
1,378,051 |
|
Stockholders’ equity |
|
2,896,111 |
|
|
|
2,832,389 |
|
Total capital |
$ |
4,275,946 |
|
|
$ |
4,210,440 |
|
Ratio of
debt-to-capital(1) |
|
32.3 |
% |
|
|
32.7 |
% |
|
|
|
|
Total debt |
$ |
1,379,835 |
|
|
$ |
1,378,051 |
|
Less: Cash and cash
equivalents |
|
(981,567 |
) |
|
|
(889,664 |
) |
Net debt |
|
398,268 |
|
|
|
488,387 |
|
Stockholders’ equity |
|
2,896,111 |
|
|
|
2,832,389 |
|
Net capital |
$ |
3,294,379 |
|
|
$ |
3,320,776 |
|
Ratio of net debt-to-net
capital(2) |
|
12.1 |
% |
|
|
14.7 |
% |
__________(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, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
(in thousands) |
Net income available to common
stockholders |
$ |
60,724 |
|
|
$ |
136,383 |
|
|
$ |
135,466 |
|
|
$ |
223,861 |
|
Interest expense: |
|
|
|
|
|
|
|
Interest incurred |
|
37,394 |
|
|
|
28,789 |
|
|
|
74,873 |
|
|
|
57,342 |
|
Interest capitalized |
|
(37,394 |
) |
|
|
(28,789 |
) |
|
|
(74,873 |
) |
|
|
(57,342 |
) |
Amortization of interest in cost of sales |
|
25,681 |
|
|
|
24,963 |
|
|
|
45,932 |
|
|
|
42,028 |
|
Provision for income taxes |
|
21,472 |
|
|
|
45,936 |
|
|
|
48,822 |
|
|
|
76,161 |
|
Depreciation and amortization |
|
6,128 |
|
|
|
6,741 |
|
|
|
13,182 |
|
|
|
12,026 |
|
EBITDA |
|
114,005 |
|
|
|
214,023 |
|
|
|
243,402 |
|
|
|
354,076 |
|
Amortization of stock-based compensation |
|
4,162 |
|
|
|
5,751 |
|
|
|
8,023 |
|
|
|
11,023 |
|
Impairments and lot option abandonments |
|
11,761 |
|
|
|
1,131 |
|
|
|
12,478 |
|
|
|
1,897 |
|
Adjusted EBITDA |
$ |
129,928 |
|
|
$ |
220,905 |
|
|
$ |
263,903 |
|
|
$ |
366,996 |
|
TRI Pointe Homes (NYSE:TPH)
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