0001561680false00015616802024-02-202024-02-20

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) February 20, 2024
_______________________________________________________________________________________
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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 February 20, 2024, Tri Pointe Homes, Inc., a Delaware corporation (the “Company”), announced in a press release its financial results for the quarter ended December 31, 2023 and full year 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

104    Cover Page Interactive Data File, formatted in Inline XBRL




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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: February 20, 2024By:/s/ Glenn J. Keeler
  Glenn J. Keeler,
Chief Financial Officer

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Exhibit 99.1
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TRI POINTE HOMES, INC. REPORTS 2023 FOURTH QUARTER AND FULL YEAR RESULTS
Fourth Quarter Highlights
-Net New Home Orders Increased 143% to 1,078-
-Backlog Units Increased 58% to 2,320, and Backlog Dollar Value Increased 38% to $1.6 Billion-
-Active Selling Communities Increased 14% to 155-
-New Home Deliveries of 1,813 for Home Sales Revenue of $1.2 Billion-
-Homebuilding Gross Margin Percentage of 22.9%-
-Diluted Earnings Per Share of $1.36-
 
INCLINE VILLAGE, Nev., February 20, 2024 / Business Wire / – Tri Pointe Homes, Inc. (the “Company”) (NYSE: TPH) today announced results for the fourth quarter ended December 31, 2023 and full year 2023.
“2023 proved to be another strong year for Tri Pointe Homes, capped off by a successful fourth quarter, during which we reported home sales revenue of $1.2 billion, homebuilding gross margin percentage of 22.9%, and diluted earnings per share of $1.36,” said Doug Bauer, Tri Pointe Homes Chief Executive Officer. “The strong finish to the year was accompanied by a 143% increase in net new home orders for the quarter, which led to a 40% increase for the full year. We ended the year with 155 active selling communities, which was a 14% increase over the prior year. Based on our strong land pipeline with approximately 32,000 owned or controlled lots, we expect to grow our community count by another 10% by the end of 2025.”
Mr. Bauer continued, “In the fourth quarter of 2023, our industry saw a notable change in mortgage interest rates, peaking above 8% in October, then rapidly decreasing with shifting market sentiment. Order activity subsequently increased as we moved through the quarter and that momentum has continued into 2024, with both January and February off to a strong start.”
“We remain encouraged by the fundamentals of the housing market, including household formations, strong demand from Millennial and Gen-Z buyers, a more normalized supply chain, and shorter cycle times,” stated Tri Pointe Homes President and Chief Operating Officer Tom Mitchell. “These dynamics, along with the lack of resale supply, should continue to support the homebuilding industry, whose market share of total home sales sits at historical highs.”
Mr. Bauer concluded, “As a growth-oriented company, we are focused on growing scale in our existing markets and targeting new markets through organic startups or M&A. Last year, we announced our organic entry into Utah, and we are actively looking for growth in the Southeast by expanding our footprint into the Coastal Carolinas and Florida markets. We believe our strong balance sheet positions us well to return capital to stockholders through share repurchases, while maintaining sufficient liquidity to expand our market scale and tap into new opportunities that fit within our growth strategy.”
Results and Operational Data for Fourth Quarter 2023 and Comparisons to Fourth Quarter 2022
•Net income available to common stockholders was $132.8 million, or $1.36 per diluted share, compared to $203.0 million, or $1.98 per diluted share
•Home sales revenue for the quarter was $1.2 billion, a decrease of 17%
◦New home deliveries of 1,813 homes compared to 2,016 homes, a decrease of 10%
◦Average sales price of homes delivered of $685,000 compared to $746,000
•Homebuilding gross margin percentage of 22.9% compared to 25.0%, a decrease of 210 basis points
◦Excluding interest, impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 26.5%*
•Selling, general and administrative (“SG&A”) expense as a percentage of homes sales revenue of 9.3% compared to 7.6%, an increase of 170 basis points
•Net new home orders of 1,078 compared to 444, an increase of 143%
•Active selling communities averaged 159.3 compared to 136.8, an increase of 16%
◦Net new home orders per average selling community increased by 109% to 6.8 orders (2.3 monthly) compared to 3.2 orders (1.1 monthly)
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◦Cancellation rate of 12% compared to 42%
•Backlog units at quarter end of 2,320 homes compared to 1,472, an increase of 58%
◦Dollar value of backlog at quarter end of $1.6 billion compared to $1.2 billion, an increase of 38%
◦Average sales price in backlog at quarter end of $695,000 compared to $791,000, a decrease of 12%
•Ratios of debt-to-capital and net debt-to-net capital of 31.5% and 14.6%*, respectively, as of December 31, 2023
•Repurchased 1,836,177 shares of common stock at an average price of $27.23 for an aggregate dollar amount of $50.0 million during the quarter ended December 31, 2023
•Ended fourth quarter of 2023 with total liquidity of $1.6 billion, including cash of $869.0 million and $697.7 million of availability under the Company’s unsecured revolving credit facility
*    See “Reconciliation of Non-GAAP Financial Measures”
Results and Operational Data for Full Year 2023 and Comparisons to Full Year 2022
•Net income available to common stockholders was $343.7 million, or $3.45 per diluted share, compared to $576.1 million, or $5.54 per diluted share
•Home sales revenue of $3.7 billion compared to $4.3 billion, a decrease of 15%
◦New home deliveries of 5,274 homes compared to 6,063 homes, a decrease of 13%
◦Average sales price of homes delivered of $693,000 compared to $708,000, a decrease of 2%
•Homebuilding gross margin percentage of 22.3% compared to 26.4%, a decrease of 410 basis points
◦Excluding interest, impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 25.9%*
•SG&A expense as a percentage of homes sales revenue of 11.0% compared to 9.0%, an increase of 200 basis points
•Net new home orders of 6,122 compared to 4,377, an increase of 40%
•Active selling communities averaged 147.5 compared to 124.7, an increase of 18%
◦Net new home orders per average selling community decreased by 21% to 41.5 orders (3.5 monthly) compared to 35.1 orders (2.9 monthly)
◦Cancellation rate of 10% compared to 19%
•Repurchased 6,301,275 shares of common stock at an average price of $27.68 for an aggregate dollar amount of $174.4 million during the full year ended December 31, 2023
 
*    See “Reconciliation of Non-GAAP Financial Measures”

Outlook
For the first quarter of 2024, the Company anticipates delivering between 1,200 and 1,400 homes at an average sales price between $645,000 and $655,000. The Company expects its homebuilding gross margin percentage to be in the range of 22.0% to 23.0% for the first quarter of 2024 and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 12.0% to 13.0%. Lastly, the Company expects its effective tax rate for the first quarter of 2024 to be approximately 26.5%.
For the full year of 2024, the Company anticipates delivering between 6,000 and 6,300 homes at an average sales price between $645,000 and $655,000. The Company expects its homebuilding gross margin percentage to be in the range of 21.5% to 22.5% for the full year of 2024 and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 10.5% to 11.5%. Lastly, the Company expects its effective tax rate for the year to be approximately 26.5%.
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Earnings Conference Call
The Company will host a conference call via live webcast for investors and other interested parties beginning at 7:00 a.m. Pacific Time (10:00 a.m. Eastern Time) on Tuesday, February 20, 2024. 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 presentation slides on the internet through the Events & Presentations heading in the Investors section of the Company’s website at www.TriPointeHomes.com. Listeners should go to the website at least fifteen minutes prior to the call to download and install any necessary audio software. The call can also be accessed toll free at (877) 407-3982, or (201) 493-6780 for international participants. Participants should ask for the Tri Pointe Homes Fourth Quarter 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 one week following the call toll free at (844) 512-2921, or (412) 317-6671 for international participants, using the reference number 13743992. An archive of the webcast will also be available on the Company’s website for a limited time.
About Tri Pointe Homes®
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 to the 2024 Fortune World’s Most Admired Companies™ list, is one of the 2023 Fortune 100 Best Companies to Work For®, and was designated as one of the 2023 PEOPLE Companies That Care®. The company was also named as a Great Place To Work-Certified™ company for three years in a row (2021 through 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, 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 public health emergencies, including
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outbreaks of contagious diseases, such as COVID-19; transportation costs; federal and state tax policies; the effects of land use, environment and other governmental laws and regulations; legal proceedings or disputes and the adequacy of reserves; risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, synergies, indebtedness, financial condition, losses and future prospects; changes in accounting principles; risks related to unauthorized access to our computer systems, theft of our homebuyers’ confidential information or other forms of cyber-attack; and additional factors discussed under the sections captioned “Risk Factors” included in our annual and quarterly reports filed with the Securities and Exchange Commission. The foregoing list is not exhaustive. New risk factors may emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risk factors on our business.

Investor Relations Contact:
Media Contact:
InvestorRelations@TriPointeHomes.com, 949-478-8696
Carol Ruiz, cruiz@newgroundco.com, 310-437-0045

 
 

 

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KEY OPERATIONS AND FINANCIAL DATA
(dollars in thousands)
(unaudited)
Three Months Ended December 31,Year Ended December 31,
20232022Change% Change20232022Change% Change
Operating Data:
Home sales revenue
$1,241,258 $1,504,177 $(262,919)(17)%$3,654,035 $4,291,563 $(637,528)(15)%
Homebuilding gross margin
$283,936 $376,756 $(92,820)(25)%$815,522 $1,130,982 $(315,460)(28)%
Homebuilding gross margin %
22.9 %25.0 %(2.1)%22.3 %26.4 %(4.1)%
Adjusted homebuilding gross margin %*
26.5 %27.9 %(1.4)%25.9 %29.0 %(3.1)%
SG&A expense
$115,456 $114,726 $730 1 %$402,382 $387,509 $14,873 4 %
SG&A expense as a % of home sales revenue
9.3 %7.6 %1.7 %11.0 %9.0 %2.0 %
Net income available to common stockholders
$132,834 $202,973 $(70,139)(35)%$343,702 $576,060 $(232,358)(40)%
Adjusted EBITDA*
$236,146 $324,716 $(88,570)(27)%$639,727 $929,081 $(289,354)(31)%
Interest incurred
$35,377 $35,294 $83 0 %$147,169 $124,529 $22,640 18 %
Interest in cost of home sales
$43,516 $38,036 $5,480 14 %$116,143 $106,595 $9,548 9 %
Other Data:
Net new home orders
1,078 444 634 143 %6,122 4,377 1,745 40 %
New homes delivered
1,813 2,016 (203)(10)%5,274 6,063 (789)(13)%
Average sales price of homes delivered
$685 $746 $(61)(8)%$693 $708 $(15)(2)%
Cancellation rate
12 %42 %(30)%10 %19 %(9)%
Average selling communities
159.3 136.8 22.5 16 %147.5 124.7 22.8 18 %
Selling communities at end of period
155 136 19 14 %
Backlog (estimated dollar value)
$1,612,114 $1,164,678 $447,436 38 %
Backlog (homes)
2,320 1,472 848 58 %
Average sales price in backlog
$695 $791 $(96)(12)%
December 31,
2023		December 31,
2022		Change
Balance Sheet Data:
Cash and cash equivalents
$868,953 $889,664 $(20,711)
Real estate inventories
$3,337,483 $3,173,849 $163,634 
Lots owned or controlled
31,960 33,794 (1,834)
Homes under construction (1)
3,088 2,373 715 
Homes completed, unsold
263 288 (25)
Total debt, net
$1,382,586 $1,378,051 $4,535 
Stockholders' equity
$3,010,958 $2,832,389 $178,569 
Book capitalization
$4,393,544 $4,210,440 $183,104 
Ratio of debt-to-capital
31.5 %32.7 %(1.2)%
Ratio of net debt-to-net-capital*
14.6 %14.7 %(0.1)%
_____________________________________
(1)     Homes under construction included 69 and 78 models at December 31, 2023 and December 31, 2022, respectively.
*    See “Reconciliation of Non-GAAP Financial Measures”

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CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
 
December 31,
2023		December 31,
2022
Assets(unaudited)
Cash and cash equivalents
$868,953 $889,664 
Receivables
224,636 169,449 
Real estate inventories
3,337,483 3,173,849 
Investments in unconsolidated entities
131,824 129,837 
Goodwill and other intangible assets, net
156,603 156,603 
Deferred tax assets, net
37,996 34,851 
Other assets
157,093 165,687 
Total assets
$4,914,588 $4,719,940 
Liabilities
Accounts payable
$64,833 $62,324 
Accrued expenses and other liabilities
453,531 443,034 
Loans payable
288,337 287,427 
Senior notes
1,094,249 1,090,624 
Total liabilities
1,900,950 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 December 31, 2023 and
   December 31, 2022, respectively
— — 
Common stock, $0.01 par value, 500,000,000 shares authorized;
  95,530,512 and 101,017,708 shares issued and outstanding at
   December 31, 2023 and December 31, 2022, respectively
955 1,010 
Additional paid-in capital
0 3,685 
Retained earnings
3,010,003 2,827,694 
Total stockholders' equity
3,010,958 2,832,389 
Noncontrolling interests
2,680 4,142 
Total equity
3,013,638 2,836,531 
Total liabilities and equity
$4,914,588 $4,719,940 

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CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
 
 Three Months Ended December 31,Year Ended December 31,
 2023202220232022
Homebuilding:  
Home sales revenue$1,241,258 $1,504,177 $3,654,035 $4,291,563 
Land and lot sales revenue1,691 771 12,197 5,108 
Other operations revenue752 674 2,971 2,695 
Total revenues1,243,701 1,505,622 3,669,203 4,299,366 
Cost of home sales957,322 1,127,421 2,838,513 3,160,581 
Cost of land and lot sales1,796 — 12,083 2,075 
Other operations expense723 665 2,894 2,685 
Sales and marketing56,411 62,293 184,388 175,005 
General and administrative59,045 52,433 217,994 212,504 
Homebuilding income from operations168,404 262,810 413,331 746,516 
Equity in (loss) income of unconsolidated entities(369)346 (97)312 
Other income, net9,085 1,455 39,446 2,307 
Homebuilding income before income taxes177,120 264,611 452,680 749,135 
Financial Services:
Revenues15,997 17,182 46,001 49,167 
Expenses11,959 7,679 31,322 25,136 
Equity in income of unconsolidated entities— — — 46 
Financial services income before income taxes4,038 9,503 14,679 24,077 
Income before income taxes181,158 274,114 467,359 773,212 
Provision for income taxes(46,400)(68,719)(118,164)(190,803)
Net income134,758 205,395 349,195 582,409 
Net income attributable to noncontrolling interests(1,924)(2,422)(5,493)(6,349)
Net income available to common stockholders$132,834 $202,973 $343,702 $576,060 
Earnings per share  
Basic$1.38 $2.01 $3.48 $5.60 
Diluted$1.36 $1.98 $3.45 $5.54 
Weighted average shares outstanding    
Basic96,142,092 100,947,993 98,679,477 102,898,423 
Diluted97,438,742 102,456,279 99,695,662 104,003,652 
 
 

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MARKET DATA BY REPORTING SEGMENT & STATE
(dollars in thousands)
(unaudited)
 
Three Months Ended December 31,Year Ended December 31,
 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
Arizona133 $764 266 $774 630 $781 629 $761 
California870 722 812 820 1,986 745 2,541 751 
Nevada108 670 159 796 397 729 522 751 
Washington67 889 36 888 173 848 208 962 
West total1,178 731 1,273 809 3,186 756 3,900 764 
Colorado34 684 121 745 144 738 322 716 
Texas366 553 338 614 1,141 561 1,126 553 
Central total400 564 459 649 1,285 581 1,448 590 
Carolinas(1)177 466 194 468 616 458 346 466 
Washington D.C. Area(2)58 1,233 90 951 187 1,159 369 808 
East total235 655 284 621 803 621 715 642 
Total1,813 $685 2,016 $746 5,274 $693 6,063 $708 
Three Months Ended December 31,Year Ended December 31,
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
Arizona76 13.5 3 13.0 511 13.5 487 13.4 
California390 46.6 226 55.5 2,386 49.6 1,803 49.3 
Nevada68 11.3 4 6.8 403 9.2 321 7.5 
Washington62 5.3 11 5.0 228 5.4 114 3.3 
West total596 76.7 244 80.3 3,528 77.7 2,725 73.5 
Colorado24 11.0 8 6.5 142 8.4 188 7.4 
Texas303 54.3 81 30.0 1,565 43.8 772 24.8 
Central total327 65.3 89 36.5 1,707 52.2 960 32.2 
Carolinas(1)100 13.0 73 15.2 678 14.0 445 12.2 
Washington D.C. Area(2)55 4.3 38 4.8 209 3.6 247 6.8 
East total155 17.3 111 20.0 887 17.6 692 19.0 
Total1,078 159.3 444 136.8 6,122 147.5 4,377 124.7 

 



 
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MARKET DATA BY REPORTING SEGMENT & STATE, continued
(dollars in thousands)
(unaudited)
 
As of December 31, 2023As of December 31, 2022
Backlog
Units		Backlog
Dollar
Value		Average
Sales
Price		Backlog
Units		Backlog
Dollar
Value		Average
Sales
Price
Arizona259 $190,798 $737 378 $316,233 $837 
California698 559,729 802 298 289,659 972 
Nevada131 91,012 695 125 102,985 824 
Washington90 79,672 885 35 27,075 774 
West total1,178 921,211 782 836 735,952 880 
Colorado48 32,963 687 50 39,988 800 
Texas706 409,769 580 282 186,001 660 
Central total754 442,732 587 332 225,989 681 
Carolinas(1)282 140,523 498 220 102,775 467 
Washington D.C. Area(2)106 107,648 1,016 84 99,962 1,190 
East total388 248,171 640 304 202,737 667 
Total2,320 $1,612,114 $695 1,472 $1,164,678 $791 
December 31,
2023		December 31,
2022
Lots Owned or Controlled:
Arizona2,394 2,901 
California10,148 11,399 
Nevada1,785 1,634 
Washington712 827 
West total15,039 16,761 
Colorado1,908 1,600 
Texas10,056 10,361 
Central total11,964 11,961 
Carolinas(1)4,038 3,857 
Washington D.C. Area(2)919 1,215 
East total4,957 5,072 
Total31,960 33,794 
December 31,
2023		December 31,
2022
Lots by Ownership Type:
Lots owned
18,739 18,762 
Lots controlled (1)
13,221 15,032 
Total31,960 33,794 
__________
(1)    As of December 31, 2023 and 2022, lots controlled included lots that were under land option contracts or purchase contracts. As of December 31, 2023 and 2022, lots controlled for Central include 3,561 and 3,325 lots, respectively, and lots controlled for East include 71 and 141 lots, respectively, which represent our expected share of lots owned by our investments in unconsolidated land development joint ventures.
 
 
Page 9
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(unaudited)
In this press release, we utilize certain financial measures that are non-GAAP financial measures as defined by the Securities and Exchange Commission. We present these measures because we believe they and similar measures are useful to management and investors in evaluating the Company’s operating performance and financing structure. We also believe these measures facilitate the comparison of our operating performance and financing structure with other companies in our industry. Because these measures are not calculated in accordance with Generally Accepted Accounting Principles (“GAAP”), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
The following tables reconcile homebuilding gross margin percentage, as reported and prepared in accordance with GAAP, to the non-GAAP financial measure adjusted homebuilding gross margin percentage. We believe this information is meaningful as it isolates the impact that leverage and non-cash impairments and lot option abandonments, as applicable, have on homebuilding gross margin and permits investors to make better comparisons with our competitors, who may adjust gross margins in a similar fashion.
 
Three Months Ended December 31,
2023%2022%
(dollars in thousands)
Home sales revenue$1,241,258 100.0 %$1,504,177 100.0 %
Cost of home sales957,322 77.1 %1,127,421 75.0 %
Homebuilding gross margin283,936 22.9 %376,756 25.0 %
Add:  interest in cost of home sales43,516 3.5 %38,036 2.5 %
Add:  impairments and lot option abandonments1,482 0.1 %4,252 0.3 %
Adjusted homebuilding gross margin$328,934 26.5 %$419,044 27.8 %
Homebuilding gross margin percentage22.9 %25.0 %
Adjusted homebuilding gross margin percentage26.5 %27.9 %


Year Ended December 31,
2023%2022%
(dollars in thousands)
Home sales revenue$3,654,035 100.0 %$4,291,563 100.0 %
Cost of home sales2,838,513 77.7 %3,160,581 73.6 %
Homebuilding gross margin815,522 22.3 %1,130,982 26.4 %
Add:  interest in cost of home sales116,143 3.2 %106,595 2.5 %
Add:  impairments and lot option abandonments14,157 0.4 %8,747 0.2 %
Adjusted homebuilding gross margin$945,822 25.9 %$1,246,324 29.0 %
Homebuilding gross margin percentage22.3 %26.4 %
Adjusted homebuilding gross margin percentage25.9 %29.0 %








Page 10
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
(unaudited)
 
The following table reconciles the Company’s ratio of debt-to-capital to the non-GAAP ratio of net debt-to-net capital. We believe that the ratio of net debt-to-net capital is a relevant financial measure for management and investors to understand the leverage employed in our operations and as an indicator of the Company’s ability to obtain financing.
 
December 31, 2023December 31, 2022
Loans payable$288,337 $287,427 
Senior notes1,094,249 1,090,624 
Total debt1,382,586 1,378,051 
Stockholders’ equity3,010,958 2,832,389 
Total capital$4,393,544 $4,210,440 
Ratio of debt-to-capital(1)
31.5 %32.7 %
Total debt$1,382,586 $1,378,051 
Less: Cash and cash equivalents(868,953)(889,664)
Net debt513,633 488,387 
Stockholders’ equity3,010,958 2,832,389 
Net capital$3,524,591 $3,320,776 
Ratio of net debt-to-net capital(2)
14.6 %14.7 %
__________
(1)    The ratio of debt-to-capital is computed as the quotient obtained by dividing debt by the sum of debt plus equity.
(2)    The ratio of net debt-to-net capital is computed as the quotient obtained by dividing net debt (which is debt less cash and cash equivalents) by the sum of net debt plus equity.

































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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) real estate inventory 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 December 31,Year Ended December 31,
2023202220232022
(in thousands)
Net income available to common stockholders$132,834 $202,973 $343,702 $576,060 
Interest expense:
Interest incurred
35,377 35,294 147,169 124,529 
Interest capitalized
(35,377)(35,294)(147,169)(124,529)
Amortization of interest in cost of sales
43,737 38,042 116,933 106,681 
Provision for income taxes
46,400 68,719 118,164 190,803 
Depreciation and amortization
6,786 9,369 26,852 28,010 
EBITDA229,757 319,103 605,651 901,554 
Amortization of stock-based compensation
4,907 2,040 19,919 18,780 
Real estate inventory impairments and lot option abandonments
1,482 3,573 14,157 8,747 
Adjusted EBITDA$236,146 $324,716 $639,727 $929,081 
 
 
 
 
 
 
 
 
 
 
 










Page 12
v3.24.0.1
Cover Page
Feb. 20, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 20, 2024
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
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