-Reports Net Income of $85.1 Million, or $0.52 per Diluted Share for
the Quarter-
-New Home Orders up 5% and New Home Deliveries up 30% for the Quarter-
-Homebuilding Gross Margin increase to 22.2% for the Quarter-
-Selling, General and Administrative Expenses decrease to 8.4% of
Home Sales Revenue for the Quarter-
IRVINE, Calif.--(BUSINESS WIRE)--
TRI Pointe Group, Inc. (NYSE: TPH) today announced results for the
fourth quarter ended December 31, 2015 and full year 2015.
On July 7, 2014, TRI Pointe consummated the merger with Weyerhaeuser
Real Estate Company (“WRECO”). The merger was accounted for as a
“reverse acquisition” of TRI Pointe by WRECO. As a result, legacy TRI
Pointe’s financial results are only included in the combined company’s
financial statements from the closing date forward and are not reflected
in the combined company’s historical financial statements. Accordingly,
legacy TRI Pointe’s financial results are not included in the Generally
Accepted Accounting Principles (“GAAP”) results for the periods prior to
July 7, 2014 included in this press release.
Results and Operational Data for Fourth Quarter 2015 and Comparisons
to Fourth Quarter 2014
-
Net income available to common stockholders was $85.1 million, or
$0.52 per diluted share compared to $41.4 million, or $0.26 per
diluted share
-
New home orders increased to 753 compared to 714, an increase of 5%
-
Active selling communities averaged 112.8 compared to 105.6
-
New home orders per average selling community were 6.7 orders
(2.23 monthly) compared to 6.8 orders (2.25 monthly)
-
Cancellation rate increased to 21% compared to 17%
-
Backlog units increased to 1,156 homes compared to 1,032, an increase
of 12%
-
Dollar value of backlog increased to $697.3 million compared to
$653.1 million, an increase of 7%
-
Average sales price in backlog of $603,000 compared to $633,000, a
decline of 5%
-
Home sales revenue of $847.4 million, an increase of 36%
-
New homes deliveries of 1,453, up 30%
-
Average sales price of homes delivered of $583,000, up 5%
-
Homebuilding gross margin percentage of 22.2%
-
Excluding interest, impairments and lot option abandonments,
adjusted homebuilding gross margin percentage was 24.2%*
-
SG&A expense as a percentage of homes sales revenue improved to 8.4%
compared to 8.9%
-
Ratios of debt and net debt to capital of 41.3% and 36.5%*,
respectively, as of December 31, 2015
-
Cash of $214.5 million and availability under unsecured revolving
credit facility of $242.4 million
* See “Reconciliation of Non-GAAP Financial Measures”
Results and Operational Data for Full Year 2015 and Comparisons to
Full Year 2014
-
Net income available to common stockholders was $205.5 million, or
$1.27 per diluted share compared to $84.2 million, or $0.58 per
diluted share
-
New home orders increased to 4,181 compared to 2,947, an increase of
42%
-
Active selling communities averaged 115.9 compared to 99.1
-
New home orders per average selling community were 36.1 orders
(3.01 monthly) compared to 29.7 orders (2.48 monthly), an increase
of 21%
-
Cancellation rate remained flat at 16%
-
Home sales revenue of $2.3 billion, an increase of 39%
-
New home deliveries of 4,057, up 31%
-
Average sales price of homes delivered of 565,000, up 6%
-
Homebuilding gross margin percentage of 21.1%
-
Excluding interest, impairments and lot option abandonments,
adjusted homebuilding gross margin percentage was 23.1%*
-
SG&A expense as a percentage of home sales revenue improved to 10.2%
compared to 11.3%
* See “Reconciliation of Non-GAAP Financial Measures”
“2015 was a banner year for our Company,” said TRI Pointe Group Chief
Executive Officer Doug Bauer. “Revenues increased 41% versus 2014, and
earnings per share more than doubled. We also met or exceeded our stated
guidance for home closings, homebuilding gross margin and SG&A leverage.
These results reflect the strides we have made since the close of the
WRECO acquisition nineteen months ago and should give us a great
foundation upon which to build in 2016.”
GAAP Fourth Quarter 2015 Operating Results
Net income available to common stockholders was $85.1 million, or $0.52
per diluted share in the fourth quarter of 2015, compared to net income
of $41.4 million, or $0.26 per diluted share for the fourth quarter of
2014. The improvement in net income available to common stockholders was
primarily driven by an increase of $64.1 million in homebuilding gross
margin due to higher home sales revenue resulting from a 30% increase in
new home deliveries, offset by an increase in selling, general and
administrative expenses and the provision for income taxes.
Home sales revenue increased $224.4 million or 36% to $847.4 million for
the fourth quarter of 2015, as compared to $623.0 million for the same
period in 2014. The increase was attributable to a 30% increase in new
home deliveries to 1,453 and a 5% increase in the Company's average
sales price of homes delivered to $583,000. New home deliveries
increased at five of our six reporting segments with the highest
increase at TRI Pointe Homes, which was up 203 units, or 83% compared to
the prior year, while delivering at an average sales price of $696,000.
New home orders increased 5% to 753 homes for the fourth quarter of
2015, as compared to 714 homes for the same period in 2014. Average
active selling communities increased to 112.8 as compared to 105.6 for
the same period in the prior year, mainly due to TRI Pointe Homes which
increased average active selling communities by 5.7 in the current year.
The Company’s overall quarterly absorption rate per average selling
community for the fourth quarter ended December 31, 2015 decreased
slightly to 6.7 orders (2.23 monthly) compared to 6.8 orders (2.25
monthly) during the same period in 2014.
The Company ended the quarter with 1,156 homes in backlog, representing
approximately $697.3 million in future home sales revenue. The average
sales price of homes in backlog as of December 31, 2015 decreased
$30,000, or 5%, to $603,000 compared to $633,000 at December 31, 2014.
Homebuilding gross margin percentage for the fourth quarter of 2015
increased to 22.2% compared to 19.9% for the same period in 2014 and
increased sequentially from 21.0% during the third quarter of 2015.
Excluding interest and impairments and lot option abandonments in cost
of home sales, adjusted homebuilding gross margin percentage was 24.2%*
for the fourth quarter of 2015 versus 22.0%* for the same period in 2014.
Selling, general and administrative expense for the fourth quarter of
2015 improved to 8.4% of home sales revenue as compared to 8.9% for the
same period in 2014. The decrease in the selling, general and
administrative expense ratio was primarily attributable to increased
home sales revenue.
“Our homebuilding teams did an excellent job getting over 75% of our
beginning backlog closed this quarter,” said TRI Pointe Group President
and Chief Operating Officer Tom Mitchell. “Thanks to careful planning
and great execution, we were able to avoid some of the construction
delays that have plagued other builders and once again deliver on our
stated closings guidance. We were able to achieve this goal while also
improving our gross margins and SG&A as a percentage of revenue. In
short, I am very pleased with the operational excellence our teams
demonstrated in 2015 as we head into the spring selling season.”
* See “Reconciliation of Non-GAAP Financial Measures”
Outlook
For the first quarter of 2016, the Company anticipates delivering
approximately 60% of its 1,156 units in backlog as of December 31, 2015.
In addition, the Company expects to open 25 new communities, and close
out of 11, resulting in 118 active selling communities as of March 31,
2016.
For the full year 2016, the Company expects to grow communities by 20%
and deliver between 4,200 and 4,400 homes at an average sales price of
$550,000. The Company expects its homebuilding gross margin for the full
year of 2016 will be in a range of 20% to 21%, with quarterly
fluctuations based on the mix of California deliveries and expects SG&A
expense will be in the range of 10.3% to 10.5%. In addition, the Company
anticipates gross profit of between $45 million and $50 million from
land and lot sales, most of which are expected to close in the second
and third quarter of 2016. The Company anticipates spending between $800
million and $1.0 billion in land acquisition and land development for
2016.
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
Friday, February 26, 2016. The call will be hosted by Doug Bauer, Chief
Executive Officer, Tom Mitchell, Chief Operating Officer and Mike
Grubbs, Chief Financial Officer.
Interested parties can listen to the call live on the internet through
the Investor Relations section of the Company’s website at www.TRIPointeGroup.com.
Listeners should go to the website at least 15 minutes prior to the call
to download and install any necessary audio software. The call can also
be accessed by dialing 1-877-407-3982 for domestic participants or
1-201-493-6780 for international participants. Participants should ask
for the TRI Pointe Group Fourth Quarter 2015 Earnings Conference Call.
Those dialing in should do so at least ten minutes prior to the start.
The replay of the call will be available for two weeks following the
call. To access the replay, the domestic dial-in number is
1-877-870-5176, the international dial-in number is 1-858-384-5517, and
the pass code is 13628663. An archive of the webcast will be available
on the Company’s website for a limited time.
About TRI Pointe Group, Inc.
Headquartered in Irvine, California, TRI Pointe Group, Inc. (NYSE: TPH)
is one of the top ten largest public homebuilders by equity market
capitalization in the United States. The company designs, constructs and
sells premium single-family homes through its portfolio of six quality
brands across eight states, included Maracay Homes in Arizona; Pardee
Homes in California and Nevada; Quadrant Homes in Washington; Trendmaker
Homes in Texas; TRI Pointe Homes in California and Colorado; and
Winchester Homes in Maryland and Virginia. Additional information is
available at www.TRIPointeGroup.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 projections and
estimates concerning the timing and success of specific projects and our
future production, operational and financial results, financial
condition, prospects, and capital spending. Our forward-looking
statements are generally accompanied by words such as “anticipate,”
“believe,” “estimate,” “goal,” “expect,” “intend,” “project,”
“potential,” “plan,” “predict,” “will,” 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 effect 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; levels of
competition; the successful execution of our internal performance plans,
including restructuring and cost reduction initiatives; global economic
conditions; raw material prices; oil and other energy prices; the effect
of weather, including the continuing drought in California; the risk of
loss from earthquakes, volcanoes, fires, floods, droughts, windstorms,
hurricanes, pest infestations and other natural disasters;
transportation costs; federal and state tax policies; the effect of land
use, environment and other governmental regulations; legal proceedings;
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 customers’ confidential information or
other forms of cyber-attack; our relationship, and actual and potential
conflicts of interest, with Starwood Capital Group or its affiliates;
and additional factors discussed under the sections captioned “Risk
Factors” included in our annual and quarterly reports filed with the
Securities and Exchange Commission (“SEC”). 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.
|
KEY OPERATIONS AND FINANCIAL DATA
|
|
(dollars in thousands)
|
|
(unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
Change
|
|
|
2015
|
|
|
|
2014
|
|
|
Change
|
|
Operating Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home sales revenue
|
|
$
|
847,409
|
|
|
$
|
622,962
|
|
|
$
|
224,447
|
|
|
$
|
2,291,264
|
|
|
$
|
1,646,274
|
|
|
$
|
644,990
|
|
|
Homebuilding gross margin
|
|
$
|
187,824
|
|
|
$
|
123,722
|
|
|
$
|
64,102
|
|
|
$
|
482,488
|
|
|
$
|
327,657
|
|
|
$
|
154,831
|
|
|
Homebuilding gross margin %
|
|
|
22.2
|
%
|
|
|
19.9
|
%
|
|
|
2.3
|
%
|
|
|
21.1
|
%
|
|
|
19.9
|
%
|
|
|
1.2
|
%
|
|
Adjusted homebuilding gross margin %*
|
|
|
24.2
|
%
|
|
|
22.0
|
%
|
|
|
2.2
|
%
|
|
|
23.1
|
%
|
|
|
21.8
|
%
|
|
|
1.3
|
%
|
|
Land and lot gross margin
|
|
$
|
9,154
|
|
|
$
|
3,547
|
|
|
$
|
5,607
|
|
|
$
|
66,196
|
|
|
$
|
9,754
|
|
|
$
|
56,442
|
|
|
Land and lot gross margin %
|
|
|
34.0
|
%
|
|
|
31.6
|
%
|
|
|
2.4
|
%
|
|
|
65.4
|
%
|
|
|
20.5
|
%
|
|
|
44.9
|
%
|
|
SG&A expense
|
|
$
|
71,605
|
|
|
$
|
55,722
|
|
|
$
|
15,883
|
|
|
$
|
233,713
|
|
|
$
|
185,958
|
|
|
$
|
47,755
|
|
|
SG&A expense as a % of home sales revenue
|
|
|
8.4
|
%
|
|
|
8.9
|
%
|
|
|
(0.5
|
)%
|
|
|
10.2
|
%
|
|
|
11.3
|
%
|
|
|
(1.1
|
)%
|
|
Net income available to common stockholders
|
|
$
|
85,072
|
|
|
$
|
41,426
|
|
|
$
|
43,646
|
|
|
$
|
205,461
|
|
|
$
|
84,197
|
|
|
$
|
121,264
|
|
|
Adjusted EBITDA*
|
|
$
|
155,196
|
|
|
$
|
88,030
|
|
|
$
|
67,166
|
|
|
$
|
388,121
|
|
|
$
|
233,562
|
|
|
$
|
154,559
|
|
|
Interest incurred
|
|
$
|
15,185
|
|
|
$
|
15,988
|
|
|
$
|
(803
|
)
|
|
$
|
60,964
|
|
|
$
|
41,706
|
|
|
$
|
19,258
|
|
|
Interest expense, net of interest capitalized
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,731
|
|
|
$
|
(2,731
|
)
|
|
Interest in cost of home sales
|
|
$
|
16,759
|
|
|
$
|
12,012
|
|
|
$
|
4,747
|
|
|
$
|
44,299
|
|
|
$
|
28,354
|
|
|
$
|
15,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net new home orders
|
|
|
753
|
|
|
|
714
|
|
|
|
39
|
|
|
|
4,181
|
|
|
|
2,947
|
|
|
|
1,234
|
|
|
New homes delivered
|
|
|
1,453
|
|
|
|
1,122
|
|
|
|
331
|
|
|
|
4,057
|
|
|
|
3,100
|
|
|
|
957
|
|
|
Average selling price of homes delivered
|
|
$
|
583
|
|
|
$
|
555
|
|
|
$
|
28
|
|
|
$
|
565
|
|
|
$
|
531
|
|
|
$
|
34
|
|
|
Average selling communities (QTD)
|
|
|
112.8
|
|
|
|
105.6
|
|
|
|
7.2
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
Average selling communities (YTD)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
115.9
|
|
|
|
99.1
|
|
|
|
16.8
|
|
|
Selling communities at end of period
|
|
|
104
|
|
|
|
108
|
|
|
|
(4
|
)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
Cancellation rate
|
|
|
21
|
%
|
|
|
17
|
%
|
|
|
4
|
%
|
|
|
16
|
%
|
|
|
16
|
%
|
|
|
0
|
%
|
|
Backlog (estimated dollar value)
|
|
$
|
697,334
|
|
|
$
|
653,096
|
|
|
$
|
44,238
|
|
|
|
|
|
|
|
|
Backlog (homes)
|
|
|
1,156
|
|
|
|
1,032
|
|
|
|
124
|
|
|
|
|
|
|
|
|
Average selling price in backlog
|
|
$
|
603
|
|
|
$
|
633
|
|
|
$
|
(30
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
Change
|
|
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
$
|
214,485
|
|
|
$
|
170,629
|
|
|
$
|
43,856
|
|
|
Real estate inventories
|
|
|
|
|
|
|
|
$
|
2,519,273
|
|
|
$
|
2,280,183
|
|
|
$
|
239,090
|
|
|
Lots owned or controlled
|
|
|
|
|
|
|
|
|
27,602
|
|
|
|
29,718
|
|
|
|
(2,116
|
)
|
|
Homes under construction (1)
|
|
|
|
|
|
|
|
|
2,280
|
|
|
|
1,887
|
|
|
|
393
|
|
|
Debt
|
|
|
|
|
|
|
|
$
|
1,170,505
|
|
|
$
|
1,138,493
|
|
|
$
|
32,012
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
|
$
|
1,664,683
|
|
|
$
|
1,454,180
|
|
|
$
|
210,503
|
|
|
Book capitalization
|
|
|
|
|
|
|
|
$
|
2,835,188
|
|
|
$
|
2,592,673
|
|
|
$
|
242,515
|
|
|
Ratio of debt-to-capital
|
|
|
|
|
|
|
|
|
41.3
|
%
|
|
|
43.9
|
%
|
|
|
(2.6
|
)%
|
|
Ratio of net debt-to-capital*
|
|
|
|
|
|
|
|
|
36.5
|
%
|
|
|
40.0
|
%
|
|
|
(3.5
|
)%
|
|
|
|
|
|
(1)
|
|
Homes under construction includes completed homes
|
|
*
|
|
See “Reconciliation of Non-GAAP Financial Measures”
|
|
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(in thousands, except share amounts)
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2015
|
|
2014
|
|
Assets
|
|
(unaudited)
|
|
|
|
Cash and cash equivalents
|
|
$
|
214,485
|
|
$
|
170,629
|
|
Receivables
|
|
|
43,710
|
|
|
20,118
|
|
Real estate inventories
|
|
|
2,519,273
|
|
|
2,280,183
|
|
Investments in unconsolidated entities
|
|
|
18,999
|
|
|
16,805
|
|
Goodwill and other intangible assets, net
|
|
|
162,029
|
|
|
162,563
|
|
Deferred tax assets, net
|
|
|
130,657
|
|
|
157,821
|
|
Other assets
|
|
|
48,918
|
|
|
81,719
|
|
Total assets
|
|
$
|
3,138,071
|
|
$
|
2,889,838
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Accounts payable
|
|
$
|
64,840
|
|
$
|
68,860
|
|
Accrued expenses and other liabilities
|
|
|
216,263
|
|
|
210,009
|
|
Unsecured revolving credit facility
|
|
|
299,392
|
|
|
260,000
|
|
Seller financed loans
|
|
|
2,434
|
|
|
14,677
|
|
Senior notes
|
|
|
868,679
|
|
|
863,816
|
|
Total liabilities
|
|
|
1,451,608
|
|
|
1,417,362
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Stockholders' Equity:
|
|
|
|
|
|
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no
shares issued and outstanding at December 31, 2015 and December
31, 2014, respectively
|
|
|
—
|
|
|
—
|
|
Common stock, $0.01 par value, 500,000,000 shares authorized;
161,813,750 and 161,355,490 shares issued and outstanding at
December 31, 2015 and December 31, 2014, respectively
|
|
|
1,618
|
|
|
1,614
|
|
Additional paid-in capital
|
|
|
911,197
|
|
|
906,159
|
|
Retained earnings
|
|
|
751,868
|
|
|
546,407
|
|
Total stockholders' equity
|
|
|
1,664,683
|
|
|
1,454,180
|
|
Noncontrolling interests
|
|
|
21,780
|
|
|
18,296
|
|
Total equity
|
|
|
1,686,463
|
|
|
1,472,476
|
|
Total liabilities and equity
|
|
$
|
3,138,071
|
|
$
|
2,889,838
|
|
|
|
CONSOLIDATED STATEMENT OF OPERATIONS
|
|
(in thousands, except share and per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
|
Home sales revenue
|
|
$
|
847,409
|
|
|
$
|
622,962
|
|
|
$
|
2,291,264
|
|
|
$
|
1,646,274
|
|
|
Land and lot sales revenue
|
|
|
26,918
|
|
|
|
11,211
|
|
|
|
101,284
|
|
|
|
47,660
|
|
|
Other operations
|
|
|
5,388
|
|
|
|
828
|
|
|
|
7,601
|
|
|
|
9,682
|
|
|
Total revenues
|
|
|
879,715
|
|
|
|
635,001
|
|
|
|
2,400,149
|
|
|
|
1,703,616
|
|
|
Cost of home sales
|
|
|
659,492
|
|
|
|
497,990
|
|
|
|
1,807,091
|
|
|
|
1,316,470
|
|
|
Cost of land and lot sales
|
|
|
17,677
|
|
|
|
7,525
|
|
|
|
34,844
|
|
|
|
37,560
|
|
|
Other operations
|
|
|
2,656
|
|
|
|
586
|
|
|
|
4,360
|
|
|
|
3,324
|
|
|
Impairments and lot option abandonments
|
|
|
181
|
|
|
|
1,391
|
|
|
|
1,930
|
|
|
|
2,515
|
|
|
Sales and marketing
|
|
|
37,259
|
|
|
|
30,504
|
|
|
|
116,217
|
|
|
|
103,600
|
|
|
General and administrative
|
|
|
34,346
|
|
|
|
25,218
|
|
|
|
117,496
|
|
|
|
82,358
|
|
|
Restructuring charges
|
|
|
599
|
|
|
|
1,341
|
|
|
|
3,329
|
|
|
|
10,543
|
|
|
Homebuilding income from operations
|
|
|
127,505
|
|
|
|
70,446
|
|
|
|
314,882
|
|
|
|
147,246
|
|
|
Equity in income (loss) of unconsolidated entities
|
|
|
1,542
|
|
|
|
(59
|
)
|
|
|
1,460
|
|
|
|
(278
|
)
|
|
Transaction expenses
|
|
|
—
|
|
|
|
(744
|
)
|
|
|
—
|
|
|
|
(17,960
|
)
|
|
Other income (loss), net
|
|
|
586
|
|
|
|
(777
|
)
|
|
|
858
|
|
|
|
(1,019
|
)
|
|
Homebuilding income from continuing operations before taxes
|
|
|
129,633
|
|
|
|
68,866
|
|
|
|
317,200
|
|
|
|
127,989
|
|
|
Financial Services:
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
528
|
|
|
|
—
|
|
|
|
1,010
|
|
|
|
—
|
|
|
Expenses
|
|
|
50
|
|
|
|
15
|
|
|
|
181
|
|
|
|
15
|
|
|
Equity in income (loss) of unconsolidated entities
|
|
|
1,233
|
|
|
|
(10
|
)
|
|
|
1,231
|
|
|
|
(10
|
)
|
|
Financial services income (loss) from continuing operations before
taxes
|
|
|
1,711
|
|
|
|
(25
|
)
|
|
|
2,060
|
|
|
|
(25
|
)
|
|
Income from continuing operations before taxes
|
|
|
131,344
|
|
|
|
68,841
|
|
|
|
319,260
|
|
|
|
127,964
|
|
|
Provision for income taxes
|
|
|
(45,991
|
)
|
|
|
(27,415
|
)
|
|
|
(112,079
|
)
|
|
|
(43,767
|
)
|
|
Income from continuing operations
|
|
|
85,353
|
|
|
|
41,426
|
|
|
|
207,181
|
|
|
|
84,197
|
|
|
Discontinued operations, net of income taxes
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Net income
|
|
|
85,353
|
|
|
|
41,426
|
|
|
|
207,181
|
|
|
|
84,197
|
|
|
Net income attributable to noncontrolling interests
|
|
|
(281
|
)
|
|
|
—
|
|
|
|
(1,720
|
)
|
|
|
—
|
|
|
Net income available to common stockholders
|
|
$
|
85,072
|
|
|
$
|
41,426
|
|
|
$
|
205,461
|
|
|
$
|
84,197
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to TRI Pointe Group, Inc. common stockholders:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
85,072
|
|
|
$
|
41,426
|
|
|
$
|
205,461
|
|
|
$
|
84,197
|
|
|
Income from discontinued operations
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Net income available to common stockholders
|
|
$
|
85,072
|
|
|
$
|
41,426
|
|
|
$
|
205,461
|
|
|
$
|
84,197
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.53
|
|
|
$
|
0.26
|
|
|
$
|
1.27
|
|
|
$
|
0.58
|
|
|
Discontinued operations
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Net earnings per share
|
|
$
|
0.53
|
|
|
$
|
0.26
|
|
|
$
|
1.27
|
|
|
$
|
0.58
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.52
|
|
|
$
|
0.26
|
|
|
$
|
1.27
|
|
|
$
|
0.58
|
|
|
Discontinued operations
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Net earnings per share
|
|
$
|
0.52
|
|
|
$
|
0.26
|
|
|
$
|
1.27
|
|
|
$
|
0.58
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
161,813,750
|
|
|
|
161,345,594
|
|
|
|
161,692,152
|
|
|
|
145,044,351
|
|
|
Diluted
|
|
|
162,379,826
|
|
|
|
162,208,756
|
|
|
|
162,319,758
|
|
|
|
145,531,289
|
|
|
|
|
MARKET DATA BY REPORTING SEGMENT & STATE
|
|
(dollars in thousands)
|
|
(unaudited)
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
Avg.
|
|
|
|
Avg.
|
|
|
|
Avg.
|
|
|
|
Avg.
|
|
|
|
Homes
|
|
Selling
|
|
Homes
|
|
Selling
|
|
Homes
|
|
Selling
|
|
Homes
|
|
Selling
|
|
|
|
Delivered
|
|
Price
|
|
Delivered
|
|
Price
|
|
Delivered
|
|
Price
|
|
Delivered
|
|
Price
|
|
New Homes Delivered:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maracay Homes
|
|
173
|
|
$
|
399
|
|
110
|
|
$
|
392
|
|
480
|
|
$
|
387
|
|
396
|
|
$
|
381
|
|
Pardee Homes
|
|
406
|
|
|
591
|
|
374
|
|
|
455
|
|
1,130
|
|
|
536
|
|
1,032
|
|
|
471
|
|
Quadrant Homes
|
|
114
|
|
|
475
|
|
101
|
|
|
452
|
|
411
|
|
|
440
|
|
320
|
|
|
420
|
|
Trendmaker Homes
|
|
145
|
|
|
511
|
|
157
|
|
|
504
|
|
539
|
|
|
511
|
|
561
|
|
|
496
|
|
TRI Pointe Homes
|
|
449
|
|
|
696
|
|
246
|
|
|
816
|
|
1,060
|
|
|
730
|
|
404
|
|
|
803
|
|
Winchester Homes
|
|
166
|
|
|
590
|
|
134
|
|
|
627
|
|
437
|
|
|
616
|
|
387
|
|
|
705
|
|
Total
|
|
1,453
|
|
$
|
583
|
|
1,122
|
|
$
|
555
|
|
4,057
|
|
$
|
565
|
|
3,100
|
|
$
|
531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
Avg.
|
|
|
|
Avg.
|
|
|
|
Avg.
|
|
|
|
Avg.
|
|
|
|
Homes
|
|
Selling
|
|
Homes
|
|
Selling
|
|
Homes
|
|
Selling
|
|
Homes
|
|
Selling
|
|
|
|
Delivered
|
|
Price
|
|
Delivered
|
|
Price
|
|
Delivered
|
|
Price
|
|
Delivered
|
|
Price
|
|
New Homes Delivered:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California
|
|
654
|
|
$
|
717
|
|
486
|
|
$
|
659
|
|
1,623
|
|
$
|
707
|
|
1,119
|
|
$
|
620
|
|
Colorado
|
|
65
|
|
|
512
|
|
22
|
|
|
416
|
|
193
|
|
|
496
|
|
37
|
|
|
421
|
|
Maryland
|
|
89
|
|
|
467
|
|
67
|
|
|
480
|
|
209
|
|
|
502
|
|
181
|
|
|
571
|
|
Virginia
|
|
77
|
|
|
732
|
|
67
|
|
|
773
|
|
228
|
|
|
720
|
|
206
|
|
|
823
|
|
Arizona
|
|
173
|
|
|
399
|
|
110
|
|
|
392
|
|
480
|
|
|
387
|
|
396
|
|
|
381
|
|
Nevada
|
|
136
|
|
|
368
|
|
112
|
|
|
370
|
|
374
|
|
|
368
|
|
280
|
|
|
360
|
|
Texas
|
|
145
|
|
|
511
|
|
157
|
|
|
504
|
|
539
|
|
|
511
|
|
561
|
|
|
496
|
|
Washington
|
|
114
|
|
|
475
|
|
101
|
|
|
452
|
|
411
|
|
|
440
|
|
320
|
|
|
420
|
|
Total
|
|
1,453
|
|
$
|
583
|
|
1,122
|
|
$
|
555
|
|
4,057
|
|
$
|
565
|
|
3,100
|
|
$
|
531
|
|
|
|
MARKET DATA BY REPORTING SEGMENT & STATE, continued
|
|
(unaudited)
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
New
|
|
Average
|
|
New
|
|
Average
|
|
New
|
|
Average
|
|
New
|
|
Average
|
|
|
|
Home
|
|
Selling
|
|
Home
|
|
Selling
|
|
Home
|
|
Selling
|
|
Home
|
|
Selling
|
|
|
|
Orders
|
|
Communities
|
|
Orders
|
|
Communities
|
|
Orders
|
|
Communities
|
|
Orders
|
|
Communities
|
|
Net New Home Orders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maracay Homes
|
|
83
|
|
15.0
|
|
72
|
|
16.5
|
|
578
|
|
16.6
|
|
385
|
|
16.4
|
|
Pardee Homes
|
|
232
|
|
24.0
|
|
177
|
|
20.5
|
|
1,186
|
|
23.1
|
|
970
|
|
20.2
|
|
Quadrant Homes
|
|
88
|
|
10.5
|
|
51
|
|
10.3
|
|
441
|
|
10.7
|
|
337
|
|
12.2
|
|
Trendmaker Homes
|
|
76
|
|
22.3
|
|
121
|
|
25.5
|
|
457
|
|
25.1
|
|
557
|
|
24.0
|
|
TRI Pointe Homes
|
|
172
|
|
27.5
|
|
207
|
|
21.8
|
|
1,107
|
|
26.9
|
|
359
|
|
9.2
|
|
Winchester Homes
|
|
102
|
|
13.5
|
|
86
|
|
11.0
|
|
412
|
|
13.5
|
|
339
|
|
17.1
|
|
Total
|
|
753
|
|
112.8
|
|
714
|
|
105.6
|
|
4,181
|
|
115.9
|
|
2,947
|
|
99.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
New
|
|
Average
|
|
New
|
|
Average
|
|
New
|
|
Average
|
|
New
|
|
Average
|
|
|
|
Home
|
|
Selling
|
|
Home
|
|
Selling
|
|
Home
|
|
Selling
|
|
Home
|
|
Selling
|
|
|
|
Orders
|
|
Communities
|
|
Orders
|
|
Communities
|
|
Orders
|
|
Communities
|
|
Orders
|
|
Communities
|
|
Net New Home Orders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California
|
|
285
|
|
34.9
|
|
281
|
|
27.5
|
|
1,706
|
|
33.5
|
|
967
|
|
19.5
|
|
Colorado
|
|
25
|
|
5.8
|
|
55
|
|
5.8
|
|
193
|
|
6.2
|
|
86
|
|
2.2
|
|
Maryland
|
|
68
|
|
6.5
|
|
48
|
|
3.8
|
|
233
|
|
6.0
|
|
165
|
|
7.2
|
|
Virginia
|
|
34
|
|
7.0
|
|
38
|
|
7.2
|
|
179
|
|
7.5
|
|
174
|
|
10.0
|
|
Arizona
|
|
83
|
|
15.0
|
|
72
|
|
16.5
|
|
578
|
|
16.6
|
|
385
|
|
16.4
|
|
Nevada
|
|
94
|
|
10.8
|
|
48
|
|
9.0
|
|
394
|
|
10.3
|
|
276
|
|
7.6
|
|
Texas
|
|
76
|
|
22.3
|
|
121
|
|
25.5
|
|
457
|
|
25.1
|
|
557
|
|
24.0
|
|
Washington
|
|
88
|
|
10.5
|
|
51
|
|
10.3
|
|
441
|
|
10.7
|
|
337
|
|
12.2
|
|
Total
|
|
753
|
|
112.8
|
|
714
|
|
105.6
|
|
4,181
|
|
115.9
|
|
2,947
|
|
99.1
|
|
|
|
MARKET DATA BY REPORTING SEGMENT & STATE, continued
|
|
(dollars in thousands)
|
|
(unaudited)
|
|
|
|
|
|
As of December 31, 2015
|
|
As of December 31, 2014
|
|
|
|
|
|
Backlog
|
|
Average
|
|
|
|
Backlog
|
|
Average
|
|
|
|
Backlog
|
|
Dollar
|
|
Selling
|
|
Backlog
|
|
Dollar
|
|
Selling
|
|
|
|
Units
|
|
Value
|
|
Price
|
|
Units
|
|
Value
|
|
Price
|
|
Backlog:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maracay Homes
|
|
203
|
|
$
|
82,171
|
|
$
|
405
|
|
105
|
|
$
|
40,801
|
|
$
|
389
|
|
Pardee Homes
|
|
274
|
|
|
200,588
|
|
|
732
|
|
218
|
|
|
147,044
|
|
|
675
|
|
Quadrant Homes
|
|
143
|
|
|
72,249
|
|
|
505
|
|
113
|
|
|
51,568
|
|
|
456
|
|
Trendmaker Homes
|
|
136
|
|
|
72,604
|
|
|
534
|
|
218
|
|
|
114,948
|
|
|
527
|
|
TRI Pointe Homes
|
|
290
|
|
|
192,097
|
|
|
662
|
|
243
|
|
|
192,802
|
|
|
793
|
|
Winchester Homes
|
|
110
|
|
|
77,625
|
|
|
706
|
|
135
|
|
|
105,933
|
|
|
785
|
|
Total
|
|
1,156
|
|
$
|
697,334
|
|
$
|
603
|
|
1,032
|
|
$
|
653,096
|
|
$
|
633
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2015
|
|
As of December 31, 2014
|
|
|
|
|
|
Backlog
|
|
Average
|
|
|
|
Backlog
|
|
Average
|
|
|
|
Backlog
|
|
Dollar
|
|
Selling
|
|
Backlog
|
|
Dollar
|
|
Selling
|
|
|
|
Units
|
|
Value
|
|
Price
|
|
Units
|
|
Value
|
|
Price
|
|
Backlog:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California
|
|
401
|
|
$
|
321,753
|
|
$
|
802
|
|
318
|
|
$
|
273,263
|
|
$
|
859
|
|
Colorado
|
|
84
|
|
|
41,026
|
|
|
488
|
|
84
|
|
|
42,329
|
|
|
504
|
|
Maryland
|
|
77
|
|
|
49,760
|
|
|
646
|
|
53
|
|
|
37,151
|
|
|
701
|
|
Virginia
|
|
33
|
|
|
27,865
|
|
|
844
|
|
82
|
|
|
68,782
|
|
|
839
|
|
Arizona
|
|
203
|
|
|
82,171
|
|
|
405
|
|
105
|
|
|
40,801
|
|
|
389
|
|
Nevada
|
|
79
|
|
|
29,906
|
|
|
379
|
|
59
|
|
|
24,254
|
|
|
411
|
|
Texas
|
|
136
|
|
|
72,604
|
|
|
534
|
|
218
|
|
|
114,948
|
|
|
527
|
|
Washington
|
|
143
|
|
|
72,249
|
|
|
505
|
|
113
|
|
|
51,568
|
|
|
456
|
|
Total
|
|
1,156
|
|
$
|
697,334
|
|
$
|
603
|
|
1,032
|
|
$
|
653,096
|
|
$
|
633
|
|
|
|
MARKET DATA BY REPORTING SEGMENT & STATE, continued
|
|
(unaudited)
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2015
|
|
2014
|
|
Lots Owned or Controlled:
|
|
|
|
|
|
Maracay Homes
|
|
1,811
|
|
1,985
|
|
Pardee Homes
|
|
16,679
|
|
17,639
|
|
Quadrant Homes
|
|
1,274
|
|
1,544
|
|
Trendmaker Homes
|
|
1,858
|
|
2,073
|
|
TRI Pointe Homes
|
|
3,628
|
|
3,726
|
|
Winchester Homes
|
|
2,352
|
|
2,751
|
|
Total
|
|
27,602
|
|
29,718
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2015
|
|
2014
|
|
Lots Owned or Controlled:
|
|
|
|
|
|
California
|
|
17,527
|
|
18,842
|
|
Colorado
|
|
876
|
|
639
|
|
Maryland
|
|
1,716
|
|
2,048
|
|
Virginia
|
|
636
|
|
703
|
|
Arizona
|
|
1,811
|
|
1,985
|
|
Nevada
|
|
1,904
|
|
1,884
|
|
Texas
|
|
1,858
|
|
2,073
|
|
Washington
|
|
1,274
|
|
1,544
|
|
Total
|
|
27,602
|
|
29,718
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2015
|
|
2014
|
|
Lots by Ownership Type:
|
|
|
|
|
|
Lots owned
|
|
24,733
|
|
25,535
|
|
Lots controlled(1)
|
|
2,869
|
|
4,183
|
|
Total
|
|
27,602
|
|
29,718
|
|
|
|
|
|
(1)
|
|
As of December 31, 2015 and December 31, 2014, lots controlled
included lots that were under land option contracts or purchase
contracts.
|
|
|
|
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 table reconciles 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 December 31,
|
|
|
|
|
2015
|
|
|
%
|
|
|
2014
|
|
|
%
|
|
|
|
(dollars in thousands)
|
|
Home sales revenue
|
|
$
|
847,409
|
|
|
100.0%
|
|
$
|
622,962
|
|
|
100.0%
|
|
Cost of home sales
|
|
|
659,492
|
|
|
77.8%
|
|
|
497,990
|
|
|
79.9%
|
|
Homebuilding impairments and lot option abandonments
|
|
|
93
|
|
|
0.0%
|
|
|
1,250
|
|
|
0.2%
|
|
Homebuilding gross margin
|
|
|
187,824
|
|
|
22.2%
|
|
|
123,722
|
|
|
19.9%
|
|
Add: interest in cost of home sales
|
|
|
16,759
|
|
|
2.0%
|
|
|
12,012
|
|
|
1.9%
|
|
Add: impairments and lot option abandonments
|
|
|
93
|
|
|
0.0%
|
|
|
1,250
|
|
|
0.2%
|
|
Adjusted homebuilding gross margin
|
|
$
|
204,676
|
|
|
24.2%
|
|
$
|
136,984
|
|
|
22.0%
|
|
Homebuilding gross margin percentage
|
|
|
22.2
|
%
|
|
|
|
|
19.9
|
%
|
|
|
|
Adjusted homebuilding gross margin percentage
|
|
|
24.2
|
%
|
|
|
|
|
22.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
2015
|
|
|
%
|
|
|
2014
|
|
|
%
|
|
|
|
(dollars in thousands)
|
|
Home sales revenue
|
|
$
|
2,291,264
|
|
|
100.0%
|
|
$
|
1,646,274
|
|
|
100.0%
|
|
Cost of home sales
|
|
|
1,807,091
|
|
|
78.9%
|
|
|
1,316,470
|
|
|
80.0%
|
|
Homebuilding impairments and lot option abandonments
|
|
|
1,685
|
|
|
0.1%
|
|
|
2,147
|
|
|
0.1%
|
|
Homebuilding gross margin
|
|
|
482,488
|
|
|
21.1%
|
|
|
327,657
|
|
|
19.9%
|
|
Add: interest in cost of home sales
|
|
|
44,299
|
|
|
1.9%
|
|
|
28,354
|
|
|
1.7%
|
|
Add: impairments and lot option abandonments
|
|
|
1,685
|
|
|
0.1%
|
|
|
2,147
|
|
|
0.1%
|
|
Adjusted homebuilding gross margin
|
|
$
|
528,472
|
|
|
23.1%
|
|
$
|
358,158
|
|
|
21.8%
|
|
Homebuilding gross margin percentage
|
|
|
21.1
|
%
|
|
|
|
|
19.9
|
%
|
|
|
|
Adjusted homebuilding gross margin percentage
|
|
|
23.1
|
%
|
|
|
|
|
21.8
|
%
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
|
|
(unaudited)
|
|
|
|
The following table reconciles the Company’s ratio of
debt-to-capital to the ratio of net debt-to-capital. We believe
that the ratio of net debt-to-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,
|
|
December 31,
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
(dollars in thousands)
|
|
Unsecured revolving credit facility
|
|
$
|
299,392
|
|
|
$
|
260,000
|
|
|
Seller financed loans
|
|
|
2,434
|
|
|
|
14,677
|
|
|
Senior Notes
|
|
|
868,679
|
|
|
|
863,816
|
|
|
Total debt
|
|
|
1,170,505
|
|
|
|
1,138,493
|
|
|
Stockholders' equity
|
|
|
1,664,683
|
|
|
|
1,454,180
|
|
|
Total capital
|
|
$
|
2,835,188
|
|
|
$
|
2,592,673
|
|
|
Ratio of debt-to-capital(1)
|
|
|
41.3
|
%
|
|
|
43.9
|
%
|
|
|
|
|
|
|
|
Total debt
|
|
$
|
1,170,505
|
|
|
$
|
1,138,493
|
|
|
Less: Cash and cash equivalents
|
|
|
(214,485
|
)
|
|
|
(170,629
|
)
|
|
Net debt
|
|
|
956,020
|
|
|
|
967,864
|
|
|
Stockholders' equity
|
|
|
1,664,683
|
|
|
|
1,454,180
|
|
|
Total capital
|
|
$
|
2,620,703
|
|
|
$
|
2,422,044
|
|
|
Ratio of net debt-to-capital(2)
|
|
|
36.5
|
%
|
|
|
40.0
|
%
|
|
|
|
|
|
(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-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. The most directly
comparable GAAP financial measure is the ratio of debt-to-capital.
|
|
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
|
|
(unaudited)
|
|
|
|
The following table calculates the non-GAAP measures of EBITDA and
Adjusted EBITDA and reconciles those amounts to net income, as
reported and prepared in accordance with GAAP. EBITDA means net
income before (a) interest expense, (b) income taxes,
(c) depreciation and amortization, (d) expensing of previously
capitalized interest included in costs of home sales and
(e) amortization of stock-based compensation. Adjusted EBITDA
means EBITDA before (f) impairment and lot option abandonments (g)
restructuring charges and (h) transaction related expenses. 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
|
|
Year Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
(in thousands)
|
|
Net income available to common stockholders
|
|
$
|
85,072
|
|
|
$
|
41,426
|
|
|
$
|
205,461
|
|
|
$
|
84,197
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
Interest incurred
|
|
|
15,185
|
|
|
|
15,988
|
|
|
|
60,964
|
|
|
|
41,706
|
|
|
Interest capitalized
|
|
|
(15,185
|
)
|
|
|
(15,988
|
)
|
|
|
(60,964
|
)
|
|
|
(38,975
|
)
|
|
Amortization of interest in cost of sales
|
|
|
17,095
|
|
|
|
12,296
|
|
|
|
45,114
|
|
|
|
52,747
|
|
|
Provision for income taxes
|
|
|
45,991
|
|
|
|
27,415
|
|
|
|
112,079
|
|
|
|
43,767
|
|
|
Depreciation and amortization
|
|
|
2,859
|
|
|
|
1,987
|
|
|
|
8,273
|
|
|
|
11,423
|
|
|
Amortization of stock-based compensation
|
|
|
3,399
|
|
|
|
1,430
|
|
|
|
11,935
|
|
|
|
7,679
|
|
|
EBITDA
|
|
|
154,416
|
|
|
|
84,554
|
|
|
|
382,862
|
|
|
|
202,544
|
|
|
Impairments and lot abandonments
|
|
|
181
|
|
|
|
1,391
|
|
|
|
1,930
|
|
|
|
2,515
|
|
|
Restructuring charges
|
|
|
599
|
|
|
|
1,341
|
|
|
|
3,329
|
|
|
|
10,543
|
|
|
Transaction expenses
|
|
|
—
|
|
|
|
744
|
|
|
|
—
|
|
|
|
17,960
|
|
|
Adjusted EBITDA
|
|
$
|
155,196
|
|
|
$
|
88,030
|
|
|
$
|
388,121
|
|
|
$
|
233,562
|
|
|
|
|
SUPPLEMENTAL COMBINED COMPANY INFORMATION
|
|
(unaudited)
|
|
|
|
The merger with Weyerhaeuser Real Estate Company (“WRECO”) was
accounted for as a “reverse acquisition” of TRI Pointe by WRECO in
accordance with ASC Topic 805, “Business Combinations.” As a
result, legacy TRI Pointe’s financial results are not included in
the combined company’s GAAP results for any period prior to
July 7, 2014, the closing date of the merger. This schedule
provides certain supplemental financial and operations information
of the combined company that is “Adjusted” to include legacy TRI
Pointe stand-alone operations. No other adjustments have been made
to the supplemental combined company information provided and this
information is summary only and may not necessarily be indicative
of the results had the merger occurred at the beginning of the
periods presented or the financial condition to be expected for
the remainder of the year or any future date or period.
|
|
|
|
The following schedule provides certain supplemental financial and
operations information of the Company that is “Adjusted” to
include legacy TRI Pointe stand-alone operations for the year
ending December 31, 2014 as though the WRECO merger was completed
on January 1, 2014.
|
|
|
|
|
|
Year Ended
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
|
|
|
Combined
|
|
Legacy
|
|
Combined
|
|
Combined
|
|
Legacy
|
|
Combined
|
|
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Supplemental Operating Data:
|
|
(dollars in thousands)
|
|
Home sales revenue
|
|
$
|
2,291,264
|
|
NA
|
|
$
|
2,291,264
|
|
$
|
1,646,274
|
|
$
|
162,107
|
|
$
|
1,808,381
|
|
Net new home orders
|
|
|
4,181
|
|
NA
|
|
|
4,181
|
|
|
2,947
|
|
|
336
|
|
|
3,283
|
|
New homes delivered
|
|
|
4,057
|
|
NA
|
|
|
4,057
|
|
|
3,100
|
|
|
197
|
|
|
3,297
|
|
Average selling price of homes delivered
|
|
$
|
565
|
|
NA
|
|
$
|
565
|
|
$
|
531
|
|
$
|
823
|
|
$
|
548
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160226005208/en/
Source: TRI Pointe Group, Inc.