0001561680false00015616802023-07-272023-07-27

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________________________________________________
FORM 8-K
_______________________________________________________________________________________ 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 27, 2023
_______________________________________________________________________________________
Q1 LOGO.jpg
Tri Pointe Homes, Inc.
(Exact name of registrant as specified in its charter)
_______________________________________________________________________________________
Delaware 1-35796 61-1763235
(State or other jurisdiction
of incorporation)		 (Commission
File Number)		 (IRS Employer
Identification No.)
 
940 Southwood Blvd, Suite 200
Incline Village, Nevada 89451
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (775) 413-1030
Not Applicable
(Former name or former address, if changed since last report.)
_______________________________________________________________________________________ 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareTPHNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02     Results of Operations and Financial Condition
On July 27, 2023, Tri Pointe Homes, Inc., a Delaware corporation (the “Company”), announced in a press release its financial results for the quarter ended June 30, 2023. A copy of the Company’s press release announcing these financial results is attached as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished pursuant to this Item 2.02, including the exhibits attached hereto, shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into any filings under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth in such filing. In addition, the press release furnished as an exhibit to this report includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.

Item 9.01     Financial Statements and Exhibits

(d)Exhibits
99.1          Press Release dated July 27, 2023
104           Cover Page Interactive Data File, formatted in Inline XBRL


2

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 Tri Pointe Homes, Inc.
   
Date: July 27, 2023By:/s/ Glenn J. Keeler
  Glenn J. Keeler,
Chief Financial Officer

3
Exhibit 99.1
q1logoa.jpg


TRI POINTE HOMES, INC. REPORTS 2023 SECOND QUARTER RESULTS

-Net New Home Orders of 1,912 on a Monthly Absorption Rate of 4.5-
-New Home Deliveries of 1,173-
-Home Sales Revenue of $819 Million-
-Diluted Earnings Per Share of $0.60-
-Debt-to-Capital Ratio of 32.3% and Total Liquidity of $1.7 Billion-

INCLINE VILLAGE, Nev., July 27, 2023 / 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%
Page 1
q1logoa.jpg
•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%.
Page 2
q1logoa.jpg
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
Page 3
q1logoa.jpg
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
  

Page 4
q1logoa.jpg

KEY OPERATIONS AND FINANCIAL DATA
(dollars in thousands)
(unaudited)
Three Months Ended June 30,Six Months Ended June 30,
20232022Change% Change20232022Change% 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 revenue11.9 %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 orders1,912 1,356 556 41 %3,531 3,252 279 9 %
New homes delivered1,173 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 rate8 %16 %(8)%9 %11 %(2)%
Average selling communities140.3 121.8 18.5 15 %138.4 116.7 21.7 19 %
Selling communities at end of period145 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,
20232022Change% 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 controlled32,834 33,794 (960)(3)%
Homes under construction (1)
3,131 2,373 758 32 %
Homes completed, unsold168 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-capital32.3 %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”
Page 5
q1logoa.jpg
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
 
June 30,December 31,
20232022
Assets(unaudited)
Cash and cash equivalents$981,567 $889,664 
Receivables117,134 169,449 
Real estate inventories3,193,328 3,173,849 
Investments in unconsolidated entities139,959 129,837 
Goodwill and other intangible assets, net156,603 156,603 
Deferred tax assets, net34,850 34,851 
Other assets157,118 165,687 
Total assets$4,780,559 $4,719,940 
Liabilities
Accounts payable$78,386 $62,324 
Accrued expenses and other liabilities425,518 443,034 
Loans payable287,427 287,427 
Senior notes1,092,408 1,090,624 
Total liabilities1,883,739 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, respectively991 1,010 
Additional paid-in capital— 3,685 
Retained earnings2,895,120 2,827,694 
Total stockholders’ equity
2,896,111 2,832,389 
Noncontrolling interests709 4,142 
Total equity2,896,820 2,836,531 
Total liabilities and equity$4,780,559 $4,719,940 


 
Page 6
q1logoa.jpg
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
 
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Homebuilding:  
Home sales revenue$819,077 $1,004,644 $1,587,482 $1,729,895 
Land and lot sales revenue7,086 114 8,792 1,711 
Other operations revenue796 703 1,470 1,347 
Total revenues826,959 1,005,461 1,597,744 1,732,953 
Cost of home sales651,999 731,352 1,240,117 1,262,012 
Cost of land and lot sales7,370 344 8,813 819 
Other operations expense782 704 1,447 1,350 
Sales and marketing43,241 38,523 85,103 70,762 
General and administrative54,224 56,829 100,590 105,285 
Homebuilding income from operations69,343 177,709 161,674 292,725 
Equity in income of unconsolidated entities42 143 269 88 
Other income, net11,093 116 18,697 389 
Homebuilding income before income taxes80,478 177,968 180,640 293,202 
Financial Services:
Revenues10,370 12,228 19,246 20,980 
Expenses7,405 6,322 13,236 11,630 
Equity in income of unconsolidated entities— — — 46 
Financial services income before income taxes2,965 5,906 6,010 9,396 
Income before income taxes83,443 183,874 186,650 302,598 
Provision for income taxes(21,472)(45,936)(48,822)(76,161)
Net income61,971 137,938 137,828 226,437 
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 
Basic99,598,933 102,164,377 100,305,168 104,731,388 
Diluted100,634,964 102,787,919 101,184,993 105,478,446 
 
 
Page 7
q1logoa.jpg
MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY
(dollars in thousands)
(unaudited)
 
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
New
Homes
Delivered		Average
Sales
Price		New
Homes
Delivered		Average
Sales
Price		New
Homes
Delivered		Average
Sales
Price		New
Homes
Delivered		Average
Sales
Price
Arizona195 $765 127 $732 330 $773 197 $733 
California352 798 579 698 691 813 1,093 690 
Nevada88 743 157 724 186 753 241 711 
Washington40 733 54 1,092 58 802 126 1,023 
West total675 778 917 731 1,265 793 1,657 723 
Colorado49 732 76 682 93 758 119 662 
Texas278 560 318 511 488 588 538 507 
Central total327 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 total171 600 174 692 392 577 270 668 
Total1,173 $698 1,485 $677 2,238 $709 2,584 $669 
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Net New
Home
Orders		Average
Selling
Communities		Net New
Home
Orders		Average
Selling
Communities		Net New
Home
Orders		Average
Selling
Communities		Net New
Home
Orders		Average
Selling
Communities
Arizona189 13.7 195 14.2 306 13.4 410 13.6 
California787 49.2 601 49.2 1,488 51.6 1,302 44.7 
Nevada105 8.0 116 7.3 189 7.6 261 8.0 
Washington70 5.8 21 1.8 122 5.4 69 2.4 
West total1,151 76.7 933 72.5 2,105 78.0 2,042 68.7 
Colorado38 6.8 34 8.0 79 6.4 165 8.0 
Texas494 39.0 153 22.0 808 36.1 568 22.1 
Central total532 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 total229 17.8 236 19.3 539 17.9 477 17.9 
Total1,912 140.3 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.

 
Page 8
q1logoa.jpg
MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY, continued
(dollars in thousands)
(unaudited)
 
As of June 30, 2023As of June 30, 2022
Backlog
Units		Backlog
Dollar
Value		Average
Sales
Price		Backlog
Units		Backlog
Dollar
Value		Average
Sales
Price
Arizona354 $276,167 $780 733 $586,871 $801 
California1,095 797,480 728 1,245 1,128,517 906 
Nevada128 94,278 737 346 279,679 808 
Washington99 91,266 922 72 60,188 836 
West total1,676 1,259,191 751 2,396 2,055,255 858 
Colorado36 24,889 691 230 178,845 778 
Texas602 340,938 566 666 408,415 613 
Central total638 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 total451 297,877 660 534 338,740 634 
Total2,765 $1,922,895 $695 3,826 $2,981,255 $779 
June 30,December 31,
20232022
Lots Owned or Controlled:
Arizona2,520 2,901 
California11,123 11,399 
Nevada1,914 1,634 
Washington827 827 
West total16,384 16,761 
Colorado1,749 1,600 
Texas9,951 10,361 
Central total11,700 11,961 
Carolinas(1)3,525 3,857 
Washington D.C. Area(2)1,225 1,215 
East total4,750 5,072 
Total32,834 33,794 
June 30,December 31,
20232022
Lots by Ownership Type:
Lots owned18,378 18,762 
Lots controlled (3)14,456 15,032 
Total32,834 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.
Page 9
q1logoa.jpg
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 sales651,999 79.6 %731,352 72.8 %
Homebuilding gross margin167,078 20.4 %273,292 27.2 %
Add:  interest in cost of home sales25,366 3.1 %24,963 2.5 %
Add:  impairments and lot option abandonments11,761 1.4 %972 0.1 %
Adjusted homebuilding gross margin$204,205 24.9 %$299,227 29.8 %
Homebuilding gross margin percentage20.4 % 27.2 % 
Adjusted homebuilding gross margin percentage24.9 % 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 sales1,240,117 78.1 %1,262,012 73.0 %
Homebuilding gross margin347,365 21.9 %467,883 27.0 %
Add:  interest in cost of home sales45,592 2.9 %42,028 2.4 %
Add:  impairments and lot option abandonments12,478 0.8 %1,461 0.1 %
Adjusted homebuilding gross margin$405,435 25.5 %$511,372 29.6 %
Homebuilding gross margin percentage21.9 %27.0 %
Adjusted homebuilding gross margin percentage25.5 %29.6 %






Page 10
q1logoa.jpg

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, 2023December 31, 2022
Loans payable$287,427 $287,427 
Senior notes1,092,408 1,090,624 
Total debt1,379,835 1,378,051 
Stockholders’ equity2,896,111 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 debt398,268 488,387 
Stockholders’ equity2,896,111 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.


Page 11
q1logoa.jpg
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,
2023202220232022
(in thousands)
Net income available to common stockholders$60,724 $136,383 $135,466 $223,861 
Interest expense:
Interest incurred37,394 28,789 74,873 57,342 
Interest capitalized(37,394)(28,789)(74,873)(57,342)
Amortization of interest in cost of sales25,681 24,963 45,932 42,028 
Provision for income taxes21,472 45,936 48,822 76,161 
Depreciation and amortization6,128 6,741 13,182 12,026 
EBITDA114,005 214,023 243,402 354,076 
Amortization of stock-based compensation4,162 5,751 8,023 11,023 
Impairments and lot option abandonments11,761 1,131 12,478 1,897 
Adjusted EBITDA$129,928 $220,905 $263,903 $366,996 
 
Page 12
v3.23.2
Cover Page
Jul. 27, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 27, 2023
Entity Registrant Name Tri Pointe Homes, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 1-35796
Entity Tax Identification Number 61-1763235
Entity Address, Address Line One 940 Southwood Blvd
Entity Address, Address Line Two Suite 200
Entity Address, City or Town Incline Village
Entity Address, State or Province NV
Entity Address, Postal Zip Code 89451
City Area Code 775
Local Phone Number 413-1030
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol TPH
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001561680
Amendment Flag false
TRI Pointe Homes (NYSE:TPH)
Historical Stock Chart
Von Apr 2024 bis Mai 2024 Click Here for more TRI Pointe Homes Charts.
TRI Pointe Homes (NYSE:TPH)
Historical Stock Chart
Von Mai 2023 bis Mai 2024 Click Here for more TRI Pointe Homes Charts.