-Reports Net Income Available to Common Stockholders of $73.9
million, or $0.46 per Diluted Share-
-Home Sales Revenue up 30% Driven by a 25% Increase in New Home
Deliveries Year over Year-
-Reports $67.3 million of Land and Lot Sales Revenue and $52.9
million in Land and Lot Gross Margin-
IRVINE, Calif.--(BUSINESS WIRE)--
TRI Pointe Group, Inc. (the "Company") (NYSE: TPH) today announced
results for the second quarter ended June 30, 2016.
Results and Operational Data for Second Quarter 2016 and Comparisons
to Second Quarter 2015
-
Net income available to common stockholders was $73.9 million, or
$0.46 per diluted share compared to $54.9 million, or $0.34 per
diluted share
-
New home orders of 1,258 compared to 1,238
-
Active selling communities averaged 119.5 for both periods
-
New home orders per average selling community were 10.5 orders
(3.5 monthly) compared to 10.4 orders (3.5 monthly)
-
Cancellation rate decreased to 13% compared to 16%
-
Backlog units of 1,798 homes compared to 1,998, a decline of 10%
-
Dollar value of backlog of $1.0 billion compared to $1.2 billion,
a decrease of 14%
-
Average sales price in backlog of $571,000 compared to $601,000, a
decline of 5%
-
Home sales revenue of $556.9 million compared to $427.2 million, an
increase of 30%
-
New homes deliveries of 994 homes compared to 798 homes, an
increase of 25%
-
Average sales price of homes delivered of $560,000 compared to
$535,000, an increase of 5%
-
Homebuilding gross margin percentage of 22.3% compared to 20.0%, an
increase of 230 basis points
-
Excluding interest, impairments and lot option abandonments,
adjusted homebuilding gross margin percentage was 24.4%*
-
Land and lot sales revenue of $67.3 million compared to $67.5 million
-
Land and lot sales gross margin percentage of 78.5% compared to
82.9%
-
Closed two land transactions representing 102 lots located in the
Pacific Highlands Ranch community in San Diego, California,
generating $61.6 million in land and lot sales revenue and $52.7
million in land and lot gross margin
-
SG&A expense as a percentage of homes sales revenue improved to 11.3%
compared to 12.6%
-
Ratios of debt-to-capital and net debt-to-capital of 42.2% and 39.9%*,
respectively, as of June 30, 2016
-
Repurchased 1,253,021 shares of common stock at an average price of
$11.73 for an aggregate dollar amount of $14.7 million in the three
months ended June 30, 2016
-
Successfully issued $300 million aggregate principal amount of 4.875%
Senior Notes due 2021 at 99.44% of their aggregate principal amount
-
Increased total commitments under existing unsecured revolving credit
facility from $550 million to $625 million
-
Ended second quarter of 2016 with cash of $117.5 million and $520.0
million of availability under the Company's unsecured revolving credit
facility
* See "Reconciliation of Non-GAAP Financial Measures"
“We posted strong results in the second quarter and continued to
demonstrate our commitment to operational excellence,” said TRI Pointe
Group Chief Executive Officer Doug Bauer. “We achieved significant
year-over-year increases in home sales revenue, homebuilding gross
margin percentage and net income, while maintaining a sales pace of 3.5
orders per average selling community per month. Each of our homebuilding
brands contributed to the bottom line, with notable contributions from
Pardee Homes, which continues to deliver healthy profits from both
homebuilding operations and land sales. I am extremely pleased with our
performance in the first half of 2016 and our market positioning as we
head into the back half of the year.”
Second Quarter 2016 Operating Results
Net income available to common stockholders was $73.9 million, or $0.46
per diluted share in the second quarter of 2016, compared to net income
available to common stockholders of $54.9 million, or $0.34 per diluted
share for the second quarter of 2015. The improvement in net income
available to common stockholders was primarily driven by an increase of
$38.7 million in homebuilding gross margin due to higher home sales
revenue resulting from a 25% increase in new home deliveries and a 230
basis point improvement in homebuilding gross margin percentage, offset
by an increase in selling, general and administrative expenses and the
provision for income taxes.
Home sales revenue increased $129.7 million, or 30%, to $556.9 million
for the second quarter of 2016, as compared to $427.2 million for the
same period in 2015. The increase was primarily attributable to a 25%
increase in new home deliveries to 994.
New home orders increased 2% to 1,258 homes for the second quarter of
2016, as compared to 1,238 homes for the same period in 2015, which was
up 62 % from 763 orders for the same period in 2014. Average active
selling communities was 119.5 for each three month period ended June 30,
2016 and 2015. The Company’s overall quarterly absorption rate per
average selling community for the second quarter ended June 30, 2016
remained strong at 10.5 orders (3.5 monthly) compared to 10.4 orders
(3.5 monthly) during the same period in 2015.
The Company ended the quarter with 1,798 homes in backlog, representing
approximately $1.0 billion in future home sales revenue. The average
sales price of homes in backlog as of June 30, 2016 decreased $30,000,
or 5%, to $571,000 compared to $601,000 at June 30, 2015.
Homebuilding gross margin percentage for the second quarter of 2016
increased to 22.3% compared to 20.0% for the same period in 2015.
Excluding interest and impairments and lot option abandonments in cost
of home sales, adjusted homebuilding gross margin percentage was 24.4%*
for the second quarter of 2016 versus 22.0%* for the same period in 2015.
Land and lot sales revenue of $67.3 million for the second quarter of
2016, as compared to $67.5 million for the same period in 2015. Land and
lot sales gross margin percentage for the second quarter of 2016
decreased to 78.5% compared to 82.9% for the same period in 2015. During
the quarter ended June 30, 2016, our Pardee Homes reporting segment sold
two parcels, totaling 102 homebuilding lots, located in the Pacific
Highlands Ranch community in San Diego, California. Pardee Homes
received $61.6 million in cash proceeds from the sale. During the
quarter ended June 30, 2015, our Pardee Homes reporting segment sold a
commercial site in the Pacific Highlands Ranch community for $53.0
million in cash proceeds. Both transactions involving the Pacific
Highlands Ranch community included significant gross margins due to the
low land basis of the community which was acquired in 1981.
Selling, general and administrative expense for the second quarter of
2016 improved to 11.3% of home sales revenue as compared to 12.6% for
the same period in 2015 due to greater leverage as a result of the 30%
increase in home sales revenue.
“During the second quarter of 2016 we again proved our ability to sell
homes with high average selling prices at an elevated pace and strong
margins,” said TRI Pointe Group President and Chief Operating Officer
Tom Mitchell. “Our results this quarter are a testament to our customer
driven culture as well as to the quality of our land holdings. We are in
a great position to build on the successes from this quarter as we
continue to execute on our strategic vision, open new communities and
find ways to continue to monetize our sizeable California land position,
which we feel holds significant value.”
* See “Reconciliation of Non-GAAP Financial Measures”
Outlook
For the third quarter of 2016, the Company anticipates delivering
approximately 55% of its 1,798 units in backlog as of June 30, 2016. In
addition, the Company expects to open 16 new communities, and close out
of 12, resulting in 121 active selling communities as of September 30,
2016.
For the full year 2016, the Company is reiterating its original guidance
of growing communities by 20%, delivering between 4,200 and 4,400 homes
at an average sales price of $550,000, a SG&A expense ratio in the range
of 10.3% to 10.5% and homebuilding gross margin in a range of 20.5% to
21.5%.
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
Wednesday, July 27, 2016. The call will be hosted by Doug Bauer, Chief
Executive Officer, Tom Mitchell, President and 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 Second Quarter 2016 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 reference code is #13640844. 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, land and lot sales, 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. 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 June 30,
|
|
Six Months Ended June 30,
|
|
|
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
|
|
Operating Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home sales revenue
|
|
$
|
556,925
|
|
|
$
|
427,238
|
|
|
$
|
129,687
|
|
|
$
|
979,980
|
|
|
$
|
801,503
|
|
|
$
|
178,477
|
|
|
Homebuilding gross margin
|
|
$
|
124,187
|
|
|
$
|
85,496
|
|
|
$
|
38,691
|
|
|
$
|
222,743
|
|
|
$
|
159,855
|
|
|
$
|
62,888
|
|
|
Homebuilding gross margin %
|
|
22.3
|
%
|
|
20.0
|
%
|
|
2.3
|
%
|
|
22.7
|
%
|
|
19.9
|
%
|
|
2.8
|
%
|
|
Adjusted homebuilding gross margin %*
|
|
24.4
|
%
|
|
22.0
|
%
|
|
2.4
|
%
|
|
24.8
|
%
|
|
21.9
|
%
|
|
2.9
|
%
|
|
Land and lot sales revenue
|
|
$
|
67,314
|
|
|
$
|
67,490
|
|
|
$
|
(176
|
)
|
|
$
|
67,669
|
|
|
$
|
69,490
|
|
|
$
|
(1,821
|
)
|
|
Land and lot gross margin
|
|
$
|
52,854
|
|
|
$
|
55,926
|
|
|
$
|
(3,072
|
)
|
|
$
|
52,430
|
|
|
$
|
55,617
|
|
|
$
|
(3,187
|
)
|
|
Land and lot gross margin %
|
|
78.5
|
%
|
|
82.9
|
%
|
|
(4.4
|
)%
|
|
77.5
|
%
|
|
80.0
|
%
|
|
(2.5
|
)%
|
|
SG&A expense
|
|
$
|
62,717
|
|
|
$
|
53,895
|
|
|
$
|
8,822
|
|
|
$
|
117,434
|
|
|
$
|
105,334
|
|
|
$
|
12,100
|
|
|
SG&A expense as a % of home sales
revenue
|
|
11.3
|
%
|
|
12.6
|
%
|
|
(1.3
|
)%
|
|
12.0
|
%
|
|
13.1
|
%
|
|
(1.1
|
)%
|
|
Net income available to common
stockholders
|
|
$
|
73,926
|
|
|
$
|
54,930
|
|
|
$
|
18,996
|
|
|
$
|
102,476
|
|
|
$
|
70,227
|
|
|
$
|
32,249
|
|
|
Adjusted EBITDA*
|
|
$
|
132,214
|
|
|
$
|
99,611
|
|
|
$
|
32,603
|
|
|
$
|
188,731
|
|
|
$
|
133,944
|
|
|
$
|
54,787
|
|
|
Interest incurred
|
|
$
|
16,280
|
|
|
$
|
15,149
|
|
|
$
|
1,131
|
|
|
$
|
31,429
|
|
|
$
|
30,325
|
|
|
$
|
1,104
|
|
|
Interest in cost of home sales
|
|
$
|
11,438
|
|
|
$
|
7,640
|
|
|
$
|
3,798
|
|
|
$
|
20,268
|
|
|
$
|
14,351
|
|
|
$
|
5,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net new home orders
|
|
1,258
|
|
|
1,238
|
|
|
20
|
|
|
2,407
|
|
|
2,432
|
|
|
(25
|
)
|
|
New homes delivered
|
|
994
|
|
|
798
|
|
|
196
|
|
|
1,765
|
|
|
1,466
|
|
|
299
|
|
|
Average selling price of homes delivered
|
|
$
|
560
|
|
|
$
|
535
|
|
|
$
|
25
|
|
|
$
|
555
|
|
|
$
|
547
|
|
|
$
|
8
|
|
|
Average selling communities
|
|
119.5
|
|
|
119.5
|
|
|
0.0
|
|
|
115.9
|
|
|
116.1
|
|
|
(0.2
|
)
|
|
Selling communities at end of period
|
|
117
|
|
|
122
|
|
|
(5
|
)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
Cancellation rate
|
|
13
|
%
|
|
16
|
%
|
|
(3
|
)%
|
|
13
|
%
|
|
14
|
%
|
|
(1
|
)%
|
|
Backlog (estimated dollar value)
|
|
$
|
1,026,219
|
|
|
$
|
1,199,847
|
|
|
$
|
(173,628
|
)
|
|
|
|
|
|
|
|
|
Backlog (homes)
|
|
1,798
|
|
|
1,998
|
|
|
(200
|
)
|
|
|
|
|
|
|
|
|
Average selling price in backlog
|
|
$
|
571
|
|
|
$
|
601
|
|
|
$
|
(30
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
Change
|
|
|
|
|
|
|
|
|
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
117,509
|
|
|
$
|
214,485
|
|
|
$
|
(96,976
|
)
|
|
|
|
|
|
|
|
|
Real estate inventories
|
|
$
|
2,840,213
|
|
|
$
|
2,519,273
|
|
|
$
|
320,940
|
|
|
|
|
|
|
|
|
|
Lots owned or controlled
|
|
27,680
|
|
|
27,602
|
|
|
78
|
|
|
|
|
|
|
|
|
|
Homes under construction (1)
|
|
2,779
|
|
|
2,280
|
|
|
499
|
|
|
|
|
|
|
|
|
|
Debt
|
|
$
|
1,282,872
|
|
|
$
|
1,170,505
|
|
|
$
|
112,367
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
$
|
1,757,301
|
|
|
$
|
1,664,683
|
|
|
$
|
92,618
|
|
|
|
|
|
|
|
|
|
Book capitalization
|
|
$
|
3,040,173
|
|
|
$
|
2,835,188
|
|
|
$
|
204,985
|
|
|
|
|
|
|
|
|
|
Ratio of debt-to-capital
|
|
42.2
|
%
|
|
41.3
|
%
|
|
0.9
|
%
|
|
|
|
|
|
|
|
|
Ratio of net debt-to-capital*
|
|
39.9
|
%
|
|
36.5
|
%
|
|
3.4
|
%
|
|
|
|
|
|
|
|
__________
(1) Homes under construction includes completed homes
*
See “Reconciliation of Non-GAAP Financial Measures”
|
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2016
|
|
2015
|
|
Assets
|
|
(unaudited)
|
|
|
|
Cash and cash equivalents
|
|
$
|
117,509
|
|
|
$
|
214,485
|
|
Receivables
|
|
34,671
|
|
|
43,710
|
|
Real estate inventories
|
|
2,840,213
|
|
|
2,519,273
|
|
Investments in unconsolidated entities
|
|
17,549
|
|
|
18,999
|
|
Goodwill and other intangible assets, net
|
|
161,762
|
|
|
162,029
|
|
Deferred tax assets, net
|
|
116,700
|
|
|
130,657
|
|
Other assets
|
|
47,860
|
|
|
48,918
|
|
Total assets
|
|
$
|
3,336,264
|
|
|
$
|
3,138,071
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Accounts payable
|
|
$
|
79,818
|
|
|
$
|
64,840
|
|
Accrued expenses and other liabilities
|
|
198,793
|
|
|
216,263
|
|
Unsecured revolving credit facility
|
|
100,000
|
|
|
299,392
|
|
Seller financed loans
|
|
17,758
|
|
|
2,434
|
|
Senior notes
|
|
1,165,114
|
|
|
868,679
|
|
Total liabilities
|
|
1,561,483
|
|
|
1,451,608
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Stockholders' Equity:
|
|
|
|
|
|
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no
shares issued and outstanding as of June 30, 2016 and December 31,
2015, respectively
|
|
—
|
|
|
—
|
|
Common stock, $0.01 par value, 500,000,000 shares authorized;
160,865,251 and 161,813,750 shares issued and outstanding at June
30, 2016 and December 31, 2015, respectively
|
|
1,609
|
|
|
1,618
|
|
Additional paid-in capital
|
|
901,348
|
|
|
911,197
|
|
Retained earnings
|
|
854,344
|
|
|
751,868
|
|
Total stockholders' equity
|
|
1,757,301
|
|
|
1,664,683
|
|
Noncontrolling interests
|
|
17,480
|
|
|
21,780
|
|
Total equity
|
|
1,774,781
|
|
|
1,686,463
|
|
Total liabilities and equity
|
|
$
|
3,336,264
|
|
|
$
|
3,138,071
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
|
Home sales revenue
|
|
$
|
556,925
|
|
|
$
|
427,238
|
|
|
$
|
979,980
|
|
|
$
|
801,503
|
|
|
Land and lot sales revenue
|
|
67,314
|
|
|
67,490
|
|
|
67,669
|
|
|
69,490
|
|
|
Other operations revenue
|
|
604
|
|
|
607
|
|
|
1,184
|
|
|
1,600
|
|
|
Total revenues
|
|
624,843
|
|
|
495,335
|
|
|
1,048,833
|
|
|
872,593
|
|
|
Cost of home sales
|
|
432,738
|
|
|
341,742
|
|
|
757,237
|
|
|
641,648
|
|
|
Cost of land and lot sales
|
|
14,460
|
|
|
11,564
|
|
|
15,239
|
|
|
13,873
|
|
|
Other operations expense
|
|
583
|
|
|
572
|
|
|
1,149
|
|
|
1,134
|
|
|
Sales and marketing
|
|
32,448
|
|
|
25,634
|
|
|
58,769
|
|
|
48,920
|
|
|
General and administrative
|
|
30,269
|
|
|
28,261
|
|
|
58,665
|
|
|
56,414
|
|
|
Restructuring charges
|
|
215
|
|
|
498
|
|
|
350
|
|
|
720
|
|
|
Homebuilding income from operations
|
|
114,130
|
|
|
87,064
|
|
|
157,424
|
|
|
109,884
|
|
|
Equity in income (loss) of unconsolidated entities
|
|
215
|
|
|
(39
|
)
|
|
201
|
|
|
68
|
|
|
Other income (loss), net
|
|
151
|
|
|
(31
|
)
|
|
266
|
|
|
225
|
|
|
Homebuilding income before income taxes
|
|
114,496
|
|
|
86,994
|
|
|
157,891
|
|
|
110,177
|
|
|
Financial Services:
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
379
|
|
|
182
|
|
|
527
|
|
|
182
|
|
|
Expenses
|
|
53
|
|
|
58
|
|
|
111
|
|
|
84
|
|
|
Equity in income (loss) of unconsolidated entities
|
|
1,284
|
|
|
(116
|
)
|
|
1,999
|
|
|
(149
|
)
|
|
Financial services income (loss) before income taxes
|
|
1,610
|
|
|
8
|
|
|
2,415
|
|
|
(51
|
)
|
|
Income before income taxes
|
|
116,106
|
|
|
87,002
|
|
|
160,306
|
|
|
110,126
|
|
|
Provision for income taxes
|
|
(41,913
|
)
|
|
(30,240
|
)
|
|
(57,403
|
)
|
|
(38,067
|
)
|
|
Net income
|
|
74,193
|
|
|
56,762
|
|
|
102,903
|
|
|
72,059
|
|
|
Net income attributable to noncontrolling interests
|
|
(267
|
)
|
|
(1,832
|
)
|
|
(427
|
)
|
|
(1,832
|
)
|
|
Net income available to common stockholders
|
|
$
|
73,926
|
|
|
$
|
54,930
|
|
|
$
|
102,476
|
|
|
$
|
70,227
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.46
|
|
|
$
|
0.34
|
|
|
$
|
0.63
|
|
|
$
|
0.43
|
|
|
Diluted
|
|
$
|
0.46
|
|
|
$
|
0.34
|
|
|
$
|
0.63
|
|
|
$
|
0.43
|
|
|
Weighted average shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
161,826,275
|
|
|
161,686,570
|
|
|
161,882,378
|
|
|
161,589,310
|
|
|
Diluted
|
|
162,259,283
|
|
|
162,308,099
|
|
|
162,245,399
|
|
|
162,265,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKET DATA BY REPORTING SEGMENT & STATE
(dollars in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
New
Homes
Delivered
|
|
Average
Sales
Price
|
|
New
Homes
Delivered
|
|
Average
Sales
Price
|
|
New
Homes
Delivered
|
|
Average
Sales
Price
|
|
New
Homes
Delivered
|
|
Average
Sales
Price
|
|
New Homes Delivered:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maracay Homes
|
|
120
|
|
|
$
|
399
|
|
|
91
|
|
|
$
|
369
|
|
|
235
|
|
|
$
|
397
|
|
|
176
|
|
|
$
|
375
|
|
Pardee Homes
|
|
318
|
|
|
562
|
|
|
242
|
|
|
456
|
|
|
526
|
|
|
566
|
|
|
410
|
|
|
478
|
|
Quadrant Homes
|
|
105
|
|
|
521
|
|
|
87
|
|
|
410
|
|
|
197
|
|
|
509
|
|
|
180
|
|
|
439
|
|
Trendmaker Homes
|
|
126
|
|
|
502
|
|
|
123
|
|
|
526
|
|
|
214
|
|
|
500
|
|
|
231
|
|
|
523
|
|
TRI Pointe Homes
|
|
217
|
|
|
704
|
|
|
174
|
|
|
750
|
|
|
418
|
|
|
681
|
|
|
313
|
|
|
759
|
|
Winchester Homes
|
|
108
|
|
|
553
|
|
|
81
|
|
|
649
|
|
|
175
|
|
|
555
|
|
|
156
|
|
|
656
|
|
Total
|
|
994
|
|
|
$
|
560
|
|
|
798
|
|
|
$
|
535
|
|
|
1,765
|
|
|
$
|
555
|
|
|
1,466
|
|
|
$
|
547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
New
Homes
Delivered
|
|
Average
Sales
Price
|
|
New
Homes
Delivered
|
|
Average
Sales
Price
|
|
New
Homes
Delivered
|
|
Average
Sales
Price
|
|
New
Homes
Delivered
|
|
Average
Sales
Price
|
|
New Homes Delivered:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California
|
|
367
|
|
|
$
|
718
|
|
|
287
|
|
|
$
|
650
|
|
|
681
|
|
|
$
|
701
|
|
|
507
|
|
|
$
|
681
|
|
Colorado
|
|
50
|
|
|
509
|
|
|
44
|
|
|
472
|
|
|
88
|
|
|
497
|
|
|
77
|
|
|
473
|
|
Maryland
|
|
66
|
|
|
499
|
|
|
31
|
|
|
559
|
|
|
114
|
|
|
501
|
|
|
62
|
|
|
569
|
|
Virginia
|
|
42
|
|
|
638
|
|
|
50
|
|
|
704
|
|
|
61
|
|
|
657
|
|
|
94
|
|
|
712
|
|
Arizona
|
|
120
|
|
|
399
|
|
|
91
|
|
|
369
|
|
|
235
|
|
|
397
|
|
|
176
|
|
|
375
|
|
Nevada
|
|
118
|
|
|
359
|
|
|
85
|
|
|
394
|
|
|
175
|
|
|
349
|
|
|
139
|
|
|
373
|
|
Texas
|
|
126
|
|
|
502
|
|
|
123
|
|
|
526
|
|
|
214
|
|
|
500
|
|
|
231
|
|
|
523
|
|
Washington
|
|
105
|
|
|
521
|
|
|
87
|
|
|
410
|
|
|
197
|
|
|
509
|
|
|
180
|
|
|
439
|
|
Total
|
|
994
|
|
|
$
|
560
|
|
|
798
|
|
|
$
|
535
|
|
|
1,765
|
|
|
$
|
555
|
|
|
1,466
|
|
|
$
|
547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKET DATA BY REPORTING SEGMENT & STATE, continued
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
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
|
|
Net New Home Orders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maracay Homes
|
|
191
|
|
|
18.5
|
|
|
184
|
|
|
18.0
|
|
|
392
|
|
|
18.3
|
|
|
345
|
|
|
17.4
|
|
Pardee Homes
|
|
340
|
|
|
22.3
|
|
|
355
|
|
|
23.5
|
|
|
653
|
|
|
22.7
|
|
|
663
|
|
|
22.0
|
|
Quadrant Homes
|
|
92
|
|
|
9.0
|
|
|
116
|
|
|
10.8
|
|
|
225
|
|
|
9.0
|
|
|
266
|
|
|
10.4
|
|
Trendmaker Homes
|
|
133
|
|
|
28.0
|
|
|
124
|
|
|
26.5
|
|
|
255
|
|
|
25.7
|
|
|
256
|
|
|
26.4
|
|
TRI Pointe Homes
|
|
379
|
|
|
28.2
|
|
|
365
|
|
|
26.5
|
|
|
644
|
|
|
26.8
|
|
|
701
|
|
|
26.3
|
|
Winchester Homes
|
|
123
|
|
|
13.5
|
|
|
94
|
|
|
14.3
|
|
|
238
|
|
|
13.4
|
|
|
201
|
|
|
13.6
|
|
Total
|
|
1,258
|
|
|
119.5
|
|
|
1,238
|
|
|
119.5
|
|
|
2,407
|
|
|
115.9
|
|
|
2,432
|
|
|
116.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
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
|
|
Net New Home Orders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California
|
|
547
|
|
|
34.4
|
|
|
559
|
|
|
33.8
|
|
|
953
|
|
|
33.7
|
|
|
1,029
|
|
|
32.1
|
|
Colorado
|
|
33
|
|
|
4.8
|
|
|
60
|
|
|
6.2
|
|
|
76
|
|
|
4.9
|
|
|
134
|
|
|
6.6
|
|
Maryland
|
|
78
|
|
|
6.5
|
|
|
45
|
|
|
6.3
|
|
|
142
|
|
|
6.4
|
|
|
94
|
|
|
5.7
|
|
Virginia
|
|
45
|
|
|
7.0
|
|
|
49
|
|
|
8.0
|
|
|
96
|
|
|
7.0
|
|
|
107
|
|
|
7.9
|
|
Arizona
|
|
191
|
|
|
18.5
|
|
|
184
|
|
|
18.0
|
|
|
392
|
|
|
18.3
|
|
|
345
|
|
|
17.4
|
|
Nevada
|
|
139
|
|
|
11.3
|
|
|
101
|
|
|
10.0
|
|
|
268
|
|
|
10.9
|
|
|
201
|
|
|
9.6
|
|
Texas
|
|
133
|
|
|
28.0
|
|
|
124
|
|
|
26.5
|
|
|
255
|
|
|
25.7
|
|
|
256
|
|
|
26.4
|
|
Washington
|
|
92
|
|
|
9.0
|
|
|
116
|
|
|
10.8
|
|
|
225
|
|
|
9.0
|
|
|
266
|
|
|
10.4
|
|
Total
|
|
1,258
|
|
|
119.5
|
|
|
1,238
|
|
|
119.5
|
|
|
2,407
|
|
|
115.9
|
|
|
2,432
|
|
|
116.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKET DATA BY REPORTING SEGMENT & STATE, continued
(dollars in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
As of June 30, 2016
|
|
As of June 30, 2015
|
|
|
|
Backlog
Units
|
|
Backlog
Dollar
Value
|
|
Average
Sales
Price
|
|
Backlog
Units
|
|
Backlog
Dollar
Value
|
|
Average
Sales
Price
|
|
Backlog:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maracay Homes
|
|
360
|
|
|
$
|
153,107
|
|
|
$
|
425
|
|
|
274
|
|
|
$
|
106,347
|
|
|
$
|
388
|
|
Pardee Homes
|
|
401
|
|
|
236,903
|
|
|
591
|
|
|
471
|
|
|
296,298
|
|
|
629
|
|
Quadrant Homes
|
|
171
|
|
|
99,366
|
|
|
581
|
|
|
199
|
|
|
87,233
|
|
|
438
|
|
Trendmaker Homes
|
|
177
|
|
|
94,850
|
|
|
536
|
|
|
243
|
|
|
128,645
|
|
|
529
|
|
TRI Pointe Homes
|
|
516
|
|
|
330,262
|
|
|
640
|
|
|
631
|
|
|
449,080
|
|
|
712
|
|
Winchester Homes
|
|
173
|
|
|
111,731
|
|
|
646
|
|
|
180
|
|
|
132,244
|
|
|
735
|
|
Total
|
|
1,798
|
|
|
$
|
1,026,219
|
|
|
$
|
571
|
|
|
1,998
|
|
|
$
|
1,199,847
|
|
|
$
|
601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2016
|
|
As of June 30, 2015
|
|
|
|
Backlog
Units
|
|
Backlog
Dollar
Value
|
|
Average
Sales
Price
|
|
Backlog
Units
|
|
Backlog
Dollar
Value
|
|
Average
Sales
Price
|
|
Backlog:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California
|
|
673
|
|
|
$
|
454,935
|
|
|
$
|
676
|
|
|
840
|
|
|
$
|
628,598
|
|
|
$
|
748
|
|
Colorado
|
|
72
|
|
|
39,928
|
|
|
555
|
|
|
141
|
|
|
71,966
|
|
|
510
|
|
Maryland
|
|
105
|
|
|
64,884
|
|
|
618
|
|
|
85
|
|
|
57,629
|
|
|
678
|
|
Virginia
|
|
68
|
|
|
46,846
|
|
|
689
|
|
|
95
|
|
|
74,615
|
|
|
785
|
|
Arizona
|
|
360
|
|
|
153,107
|
|
|
425
|
|
|
274
|
|
|
106,347
|
|
|
388
|
|
Nevada
|
|
172
|
|
|
72,302
|
|
|
420
|
|
|
121
|
|
|
44,814
|
|
|
370
|
|
Texas
|
|
177
|
|
|
94,850
|
|
|
536
|
|
|
243
|
|
|
128,645
|
|
|
529
|
|
Washington
|
|
171
|
|
|
99,367
|
|
|
581
|
|
|
199
|
|
|
87,233
|
|
|
438
|
|
Total
|
|
1,798
|
|
|
$
|
1,026,219
|
|
|
$
|
571
|
|
|
1,998
|
|
|
$
|
1,199,847
|
|
|
$
|
601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKET DATA BY REPORTING SEGMENT & STATE, continued
(unaudited)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2016
|
|
2015
|
|
Lots Owned or Controlled:
|
|
|
|
|
|
Maracay Homes
|
|
2,229
|
|
|
1,811
|
|
Pardee Homes
|
|
16,326
|
|
|
16,679
|
|
Quadrant Homes
|
|
1,416
|
|
|
1,274
|
|
Trendmaker Homes
|
|
1,783
|
|
|
1,858
|
|
TRI Pointe Homes
|
|
3,730
|
|
|
3,628
|
|
Winchester Homes
|
|
2,196
|
|
|
2,352
|
|
Total
|
|
27,680
|
|
|
27,602
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2016
|
|
2015
|
|
Lots Owned or Controlled:
|
|
|
|
|
|
California
|
|
17,280
|
|
|
17,527
|
|
Colorado
|
|
836
|
|
|
876
|
|
Maryland
|
|
1,597
|
|
|
1,716
|
|
Virginia
|
|
599
|
|
|
636
|
|
Arizona
|
|
2,229
|
|
|
1,811
|
|
Nevada
|
|
1,940
|
|
|
1,904
|
|
Texas
|
|
1,783
|
|
|
1,858
|
|
Washington
|
|
1,416
|
|
|
1,274
|
|
Total
|
|
27,680
|
|
|
27,602
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2016
|
|
2015
|
|
Lots by Ownership Type:
|
|
|
|
|
|
Lots owned
|
|
24,897
|
|
|
24,733
|
|
Lots controlled (1)
|
|
2,783
|
|
|
2,869
|
|
Total
|
|
27,680
|
|
|
27,602
|
__________
(1) As of June 30, 2016 and December 31, 2015, 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 June 30,
|
|
|
|
2016
|
|
%
|
|
2015
|
|
%
|
|
|
|
(dollars in thousands)
|
|
Home sales revenue
|
|
$
|
556,925
|
|
|
100.0
|
%
|
|
$
|
427,238
|
|
|
100.0
|
%
|
|
Cost of home sales
|
|
432,738
|
|
|
77.7
|
%
|
|
341,742
|
|
|
80.0
|
%
|
|
Homebuilding gross margin
|
|
124,187
|
|
|
22.3
|
%
|
|
85,496
|
|
|
20.0
|
%
|
|
Add: interest in cost of home sales
|
|
11,438
|
|
|
2.1
|
%
|
|
7,640
|
|
|
1.8
|
%
|
|
Add: impairments and lot option abandonments
|
|
107
|
|
|
0.0
|
%
|
|
882
|
|
|
0.2
|
%
|
|
Adjusted homebuilding gross margin
|
|
$
|
135,732
|
|
|
24.4
|
%
|
|
$
|
94,018
|
|
|
22.0
|
%
|
|
Homebuilding gross margin percentage
|
|
22.3
|
%
|
|
|
|
20.0
|
%
|
|
|
|
Adjusted homebuilding gross margin percentage
|
|
24.4
|
%
|
|
|
|
22.0
|
%
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
2016
|
|
%
|
|
2015
|
|
%
|
|
|
|
(dollars in thousands)
|
|
Home sales revenue
|
|
$
|
979,980
|
|
|
100.0
|
%
|
|
$
|
801,503
|
|
|
100.0
|
%
|
|
Cost of home sales
|
|
757,237
|
|
|
77.3
|
%
|
|
641,648
|
|
|
80.1
|
%
|
|
Homebuilding gross margin
|
|
222,743
|
|
|
22.7
|
%
|
|
159,855
|
|
|
19.9
|
%
|
|
Add: interest in cost of home sales
|
|
20,268
|
|
|
2.1
|
%
|
|
14,351
|
|
|
1.8
|
%
|
|
Add: impairments and lot option abandonments
|
|
289
|
|
|
0.0
|
%
|
|
1,227
|
|
|
0.2
|
%
|
|
Adjusted homebuilding gross margin
|
|
$
|
243,300
|
|
|
24.8
|
%
|
|
$
|
175,433
|
|
|
21.9
|
%
|
|
Homebuilding gross margin percentage
|
|
22.7
|
%
|
|
|
|
19.9
|
%
|
|
|
|
Adjusted homebuilding gross margin percentage
|
|
24.8
|
%
|
|
|
|
21.9
|
%
|
|
|
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-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.
|
|
|
June 30, 2016
|
|
December 31, 2015
|
|
Unsecured revolving credit facility
|
|
$
|
100,000
|
|
|
$
|
299,392
|
|
|
Seller financed loans
|
|
17,758
|
|
|
2,434
|
|
|
Senior notes
|
|
1,165,114
|
|
|
868,679
|
|
|
Total debt
|
|
1,282,872
|
|
|
1,170,505
|
|
|
Stockholders’ equity
|
|
1,757,301
|
|
|
1,664,683
|
|
|
Total capital
|
|
$
|
3,040,173
|
|
|
$
|
2,835,188
|
|
|
Ratio of debt-to-capital(1)
|
|
42.2
|
%
|
|
41.3
|
%
|
|
|
|
|
|
|
|
Total debt
|
|
$
|
1,282,872
|
|
|
$
|
1,170,505
|
|
|
Less: Cash and cash equivalents
|
|
(117,509
|
)
|
|
(214,485
|
)
|
|
Net debt
|
|
1,165,363
|
|
|
956,020
|
|
|
Stockholders’ equity
|
|
1,757,301
|
|
|
1,664,683
|
|
|
Total capital
|
|
$
|
2,922,664
|
|
|
$
|
2,620,703
|
|
|
Ratio of net debt-to-capital(2)
|
|
39.9
|
%
|
|
36.5
|
%
|
__________
(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 and (g) restructuring charges. Other companies may
calculate EBITDA and Adjusted EBITDA (or similarly titled measures)
differently. We believe EBITDA and Adjusted EBITDA are useful measures
of the Company’s ability to service debt and obtain financing.
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
(in thousands)
|
|
Net income available to common stockholders
|
|
$
|
73,926
|
|
|
$
|
54,930
|
|
|
$
|
102,476
|
|
|
$
|
70,227
|
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
Interest incurred
|
|
16,280
|
|
|
15,149
|
|
|
31,429
|
|
|
30,325
|
|
|
Interest capitalized
|
|
(16,280
|
)
|
|
(15,149
|
)
|
|
(31,429
|
)
|
|
(30,325
|
)
|
|
Amortization of interest in cost of sales
|
|
11,563
|
|
|
7,915
|
|
|
20,393
|
|
|
14,680
|
|
|
Provision for income taxes
|
|
41,913
|
|
|
30,240
|
|
|
57,403
|
|
|
38,067
|
|
|
Depreciation and amortization
|
|
732
|
|
|
1,689
|
|
|
1,457
|
|
|
3,170
|
|
|
Amortization of stock-based compensation
|
|
3,758
|
|
|
3,161
|
|
|
6,363
|
|
|
5,542
|
|
|
EBITDA
|
|
131,892
|
|
|
97,935
|
|
|
188,092
|
|
|
131,686
|
|
|
Impairments and lot abandonments
|
|
107
|
|
|
1,178
|
|
|
289
|
|
|
1,538
|
|
|
Restructuring charges
|
|
215
|
|
|
498
|
|
|
350
|
|
|
720
|
|
|
Adjusted EBITDA
|
|
$
|
132,214
|
|
|
$
|
99,611
|
|
|
$
|
188,731
|
|
|
$
|
133,944
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160727005367/en/
Source: TRI Pointe Group, Inc.