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)
- 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%.
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 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 |
|
KEY OPERATIONS AND FINANCIAL DATA |
|
(dollars in thousands) |
|
(unaudited) |
| |
| |
Three Months Ended December 31, |
|
Year Ended December 31, |
| |
2023 |
|
2022 |
|
Change |
|
% Change |
|
2023 |
|
2022 |
|
Change |
|
% 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”
|
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 |
|
|
|
CONSOLIDATED STATEMENT OF OPERATIONS |
|
(in thousands, except share and per share amounts) |
|
(unaudited) |
| |
| |
Three Months Ended December 31, |
|
Year Ended December 31, |
| |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Homebuilding: |
|
|
|
|
|
|
|
|
Home sales revenue |
$ |
1,241,258 |
|
|
$ |
1,504,177 |
|
|
$ |
3,654,035 |
|
|
$ |
4,291,563 |
|
|
Land and lot sales revenue |
|
1,691 |
|
|
|
771 |
|
|
|
12,197 |
|
|
|
5,108 |
|
|
Other operations revenue |
|
752 |
|
|
|
674 |
|
|
|
2,971 |
|
|
|
2,695 |
|
|
Total revenues |
|
1,243,701 |
|
|
|
1,505,622 |
|
|
|
3,669,203 |
|
|
|
4,299,366 |
|
|
Cost of home sales |
|
957,322 |
|
|
|
1,127,421 |
|
|
|
2,838,513 |
|
|
|
3,160,581 |
|
|
Cost of land and lot sales |
|
1,796 |
|
|
|
— |
|
|
|
12,083 |
|
|
|
2,075 |
|
|
Other operations expense |
|
723 |
|
|
|
665 |
|
|
|
2,894 |
|
|
|
2,685 |
|
|
Sales and marketing |
|
56,411 |
|
|
|
62,293 |
|
|
|
184,388 |
|
|
|
175,005 |
|
|
General and administrative |
|
59,045 |
|
|
|
52,433 |
|
|
|
217,994 |
|
|
|
212,504 |
|
|
Homebuilding income from operations |
|
168,404 |
|
|
|
262,810 |
|
|
|
413,331 |
|
|
|
746,516 |
|
|
Equity in (loss) income of unconsolidated entities |
|
(369 |
) |
|
|
346 |
|
|
|
(97 |
) |
|
|
312 |
|
|
Other income, net |
|
9,085 |
|
|
|
1,455 |
|
|
|
39,446 |
|
|
|
2,307 |
|
|
Homebuilding income before income taxes |
|
177,120 |
|
|
|
264,611 |
|
|
|
452,680 |
|
|
|
749,135 |
|
| Financial
Services: |
|
|
|
|
|
|
|
|
Revenues |
|
15,997 |
|
|
|
17,182 |
|
|
|
46,001 |
|
|
|
49,167 |
|
|
Expenses |
|
11,959 |
|
|
|
7,679 |
|
|
|
31,322 |
|
|
|
25,136 |
|
|
Equity in income of unconsolidated entities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46 |
|
|
Financial services income before income taxes |
|
4,038 |
|
|
|
9,503 |
|
|
|
14,679 |
|
|
|
24,077 |
|
| Income before income
taxes |
|
181,158 |
|
|
|
274,114 |
|
|
|
467,359 |
|
|
|
773,212 |
|
| Provision for income
taxes |
|
(46,400 |
) |
|
|
(68,719 |
) |
|
|
(118,164 |
) |
|
|
(190,803 |
) |
| Net income |
|
134,758 |
|
|
|
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 |
|
|
|
|
|
|
|
|
Basic |
|
96,142,092 |
|
|
|
100,947,993 |
|
|
|
98,679,477 |
|
|
|
102,898,423 |
|
|
Diluted |
|
97,438,742 |
|
|
|
102,456,279 |
|
|
|
99,695,662 |
|
|
|
104,003,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKET DATA BY REPORTING SEGMENT & STATE |
|
(dollars in thousands) |
|
(unaudited) |
| |
| |
Three Months Ended December 31, |
|
Year Ended December 31, |
| |
2023 |
|
2022 |
|
2023 |
|
2022 |
| |
NewHomesDelivered |
|
AverageSalesPrice |
|
NewHomesDelivered |
|
AverageSalesPrice |
|
NewHomesDelivered |
|
AverageSalesPrice |
|
NewHomesDelivered |
|
AverageSalesPrice |
|
Arizona |
133 |
|
$ |
764 |
|
266 |
|
$ |
774 |
|
630 |
|
$ |
781 |
|
629 |
|
$ |
761 |
|
California |
870 |
|
|
722 |
|
812 |
|
|
820 |
|
1,986 |
|
|
745 |
|
2,541 |
|
|
751 |
|
Nevada |
108 |
|
|
670 |
|
159 |
|
|
796 |
|
397 |
|
|
729 |
|
522 |
|
|
751 |
|
Washington |
67 |
|
|
889 |
|
36 |
|
|
888 |
|
173 |
|
|
848 |
|
208 |
|
|
962 |
| West total |
1,178 |
|
|
731 |
|
1,273 |
|
|
809 |
|
3,186 |
|
|
756 |
|
3,900 |
|
|
764 |
|
Colorado |
34 |
|
|
684 |
|
121 |
|
|
745 |
|
144 |
|
|
738 |
|
322 |
|
|
716 |
|
Texas |
366 |
|
|
553 |
|
338 |
|
|
614 |
|
1,141 |
|
|
561 |
|
1,126 |
|
|
553 |
| Central total |
400 |
|
|
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 total |
235 |
|
|
655 |
|
284 |
|
|
621 |
|
803 |
|
|
621 |
|
715 |
|
|
642 |
| Total |
1,813 |
|
$ |
685 |
|
2,016 |
|
$ |
746 |
|
5,274 |
|
$ |
693 |
|
6,063 |
|
$ |
708 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended December 31, |
|
Year Ended December 31, |
| |
2023 |
|
2022 |
|
2023 |
|
2022 |
| |
Net NewHomeOrders |
|
AverageSellingCommunities |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
|
Net NewHomeOrders |
|
AverageSellingCommunities |
|
Arizona |
76 |
|
|
13.5 |
|
3 |
|
|
13.0 |
|
511 |
|
|
13.5 |
|
487 |
|
|
13.4 |
|
California |
390 |
|
|
46.6 |
|
226 |
|
|
55.5 |
|
2,386 |
|
|
49.6 |
|
1,803 |
|
|
49.3 |
|
Nevada |
68 |
|
|
11.3 |
|
4 |
|
|
6.8 |
|
403 |
|
|
9.2 |
|
321 |
|
|
7.5 |
|
Washington |
62 |
|
|
5.3 |
|
11 |
|
|
5.0 |
|
228 |
|
|
5.4 |
|
114 |
|
|
3.3 |
| West total |
596 |
|
|
76.7 |
|
244 |
|
|
80.3 |
|
3,528 |
|
|
77.7 |
|
2,725 |
|
|
73.5 |
|
Colorado |
24 |
|
|
11.0 |
|
8 |
|
|
6.5 |
|
142 |
|
|
8.4 |
|
188 |
|
|
7.4 |
|
Texas |
303 |
|
|
54.3 |
|
81 |
|
|
30.0 |
|
1,565 |
|
|
43.8 |
|
772 |
|
|
24.8 |
| Central total |
327 |
|
|
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 total |
155 |
|
|
17.3 |
|
111 |
|
|
20.0 |
|
887 |
|
|
17.6 |
|
692 |
|
|
19.0 |
| Total |
1,078 |
|
|
159.3 |
|
444 |
|
|
136.8 |
|
6,122 |
|
|
147.5 |
|
4,377 |
|
|
124.7 |
| |
|
MARKET DATA BY REPORTING SEGMENT & STATE,
continued |
|
(dollars in thousands) |
|
(unaudited) |
| |
| |
As of December 31, 2023 |
|
As of December 31, 2022 |
| |
BacklogUnits |
|
BacklogDollarValue |
|
AverageSalesPrice |
|
BacklogUnits |
|
BacklogDollarValue |
|
AverageSalesPrice |
|
Arizona |
259 |
|
$ |
190,798 |
|
$ |
737 |
|
378 |
|
$ |
316,233 |
|
$ |
837 |
|
California |
698 |
|
|
559,729 |
|
|
802 |
|
298 |
|
|
289,659 |
|
|
972 |
|
Nevada |
131 |
|
|
91,012 |
|
|
695 |
|
125 |
|
|
102,985 |
|
|
824 |
|
Washington |
90 |
|
|
79,672 |
|
|
885 |
|
35 |
|
|
27,075 |
|
|
774 |
| West total |
1,178 |
|
|
921,211 |
|
|
782 |
|
836 |
|
|
735,952 |
|
|
880 |
|
Colorado |
48 |
|
|
32,963 |
|
|
687 |
|
50 |
|
|
39,988 |
|
|
800 |
|
Texas |
706 |
|
|
409,769 |
|
|
580 |
|
282 |
|
|
186,001 |
|
|
660 |
| Central total |
754 |
|
|
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 total |
388 |
|
|
248,171 |
|
|
640 |
|
304 |
|
|
202,737 |
|
|
667 |
| Total |
2,320 |
|
$ |
1,612,114 |
|
$ |
695 |
|
1,472 |
|
$ |
1,164,678 |
|
$ |
791 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
December 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
| Lots Owned or
Controlled: |
|
|
|
|
|
|
|
|
|
|
|
|
Arizona |
2,394 |
|
|
2,901 |
|
|
|
|
|
|
|
|
|
California |
10,148 |
|
|
11,399 |
|
|
|
|
|
|
|
|
|
Nevada |
1,785 |
|
|
1,634 |
|
|
|
|
|
|
|
|
|
Washington |
712 |
|
|
827 |
|
|
|
|
|
|
|
|
|
West total |
15,039 |
|
|
16,761 |
|
|
|
|
|
|
|
|
|
Colorado |
1,908 |
|
|
1,600 |
|
|
|
|
|
|
|
|
|
Texas |
10,056 |
|
|
10,361 |
|
|
|
|
|
|
|
|
|
Central total |
11,964 |
|
|
11,961 |
|
|
|
|
|
|
|
|
|
Carolinas(1) |
4,038 |
|
|
3,857 |
|
|
|
|
|
|
|
|
|
Washington D.C. Area(2) |
919 |
|
|
1,215 |
|
|
|
|
|
|
|
|
|
East total |
4,957 |
|
|
5,072 |
|
|
|
|
|
|
|
|
| Total |
31,960 |
|
|
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 |
|
|
|
|
|
|
|
|
| Total |
31,960 |
|
|
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.
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 sales |
|
957,322 |
|
|
77.1 |
% |
|
|
1,127,421 |
|
|
75.0 |
% |
| Homebuilding gross margin |
|
283,936 |
|
|
22.9 |
% |
|
|
376,756 |
|
|
25.0 |
% |
|
Add: interest in cost of home sales |
|
43,516 |
|
|
3.5 |
% |
|
|
38,036 |
|
|
2.5 |
% |
|
Add: impairments and lot option abandonments |
|
1,482 |
|
|
0.1 |
% |
|
|
4,252 |
|
|
0.3 |
% |
| Adjusted homebuilding gross
margin |
$ |
328,934 |
|
|
26.5 |
% |
|
$ |
419,044 |
|
|
27.8 |
% |
| Homebuilding gross margin
percentage |
|
22.9 |
% |
|
|
|
|
25.0 |
% |
|
|
| Adjusted homebuilding gross
margin percentage |
|
26.5 |
% |
|
|
|
|
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 sales |
|
2,838,513 |
|
|
77.7 |
% |
|
|
3,160,581 |
|
|
73.6 |
% |
| Homebuilding gross margin |
|
815,522 |
|
|
22.3 |
% |
|
|
1,130,982 |
|
|
26.4 |
% |
|
Add: interest in cost of home sales |
|
116,143 |
|
|
3.2 |
% |
|
|
106,595 |
|
|
2.5 |
% |
|
Add: impairments and lot option abandonments |
|
14,157 |
|
|
0.4 |
% |
|
|
8,747 |
|
|
0.2 |
% |
| Adjusted homebuilding gross
margin |
$ |
945,822 |
|
|
25.9 |
% |
|
$ |
1,246,324 |
|
|
29.0 |
% |
| Homebuilding gross margin
percentage |
|
22.3 |
% |
|
|
|
|
26.4 |
% |
|
|
| Adjusted homebuilding gross
margin percentage |
|
25.9 |
% |
|
|
|
|
29.0 |
% |
|
|
| |
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, 2023 |
|
December 31, 2022 |
|
Loans payable |
$ |
288,337 |
|
|
$ |
287,427 |
|
| Senior notes |
|
1,094,249 |
|
|
|
1,090,624 |
|
|
Total debt |
|
1,382,586 |
|
|
|
1,378,051 |
|
| Stockholders’ equity |
|
3,010,958 |
|
|
|
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 debt |
|
513,633 |
|
|
|
488,387 |
|
| Stockholders’ equity |
|
3,010,958 |
|
|
|
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.
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, |
| |
2023 |
|
2022 |
|
2023 |
|
2022 |
| |
(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 |
|
| EBITDA |
|
229,757 |
|
|
|
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 |
|
TRI Pointe Homes (NYSE:TPH)
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TRI Pointe Homes (NYSE:TPH)
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De Jan 2024 à Jan 2025
