EX-99.1 2 tphex991q12024.htm EX-99.1 Document
Exhibit 99.1
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TRI POINTE HOMES, INC. REPORTS 2024 FIRST QUARTER RESULTS

-Net New Home Orders Increased 12% Year-Over-Year to 1,814-
-Backlog Units Increased 35% Year-Over-Year to 2,741-
-Active Selling Communities Increased 15% Year-Over-Year to 156-
-Home Sales Revenue of $918 Million-
-Homebuilding Gross Margin Percentage of 23.0%-
-Diluted Earnings Per Share of $1.03-
-Debt-to-Capital Ratio of 31.2% and Total Liquidity of $1.6 Billion-

INCLINE VILLAGE, Nev., April 25, 2024 / Tri Pointe Homes, Inc. (the “Company”) (NYSE:TPH) today announced results for the first quarter ended March 31, 2024.
“I am pleased to report our first quarter results, which again met or exceeded the high end of our guidance across all key operating metrics,” said Doug Bauer, Tri Pointe Homes Chief Executive Officer. “We delivered 1,393 homes at an average sales price of $659,000, resulting in home sales revenue of $918 million, a 20% increase compared to the previous year. Homebuilding gross margin percentage was 23.0% for the quarter, a sequential improvement compared to our most recent quarter. These outstanding results culminated in net income of $99 million and diluted earnings per share of $1.03, marking a 41% improvement year-over-year.”
Mr. Bauer continued, “In addition to the strong financial results for the quarter, we wrote 1,814 net new home orders, an increase of 12% compared to the prior year, on a healthy absorption pace for the quarter of 3.9 homes per community per month. Consumer demand has been strong to start the year as the new homebuilders continue to benefit from the lack of resale supply.”
“Building on our successful start to 2024, we are thrilled to have recently announced the official expansion of our national footprint with the opening of new divisions in Orlando, Florida, and the Coastal Carolinas, further enhancing our presence in two of the fastest-growing regions in the nation,” said Tom Mitchell, Tri Pointe Homes Chief Operating Officer. “This move aligns perfectly with our strategic vision of building scale within existing markets, while also driving organic growth where value-enhancing market opportunities exist.”
Mr. Bauer concluded, “The strong demand we have experienced to start the year has allowed us to reduce incentives and increase pricing in select communities. As a result, we are raising full-year guidance for deliveries, average sales price, and homebuilding gross margin percentage. The underlying fundamentals continue to be strong for homebuilders and we feel Tri Pointe is in a great position to thrive in this environment.”
Results and Operational Data for First Quarter 2024 and Comparisons to First Quarter 2023
•Net income available to common stockholders was $99.1 million, or $1.03 per diluted share, compared to $74.7 million, or $0.73 per diluted share
•Home sales revenue of $918.4 million compared to $768.4 million, an increase of 20%
◦New home deliveries of 1,393 homes compared to 1,065 homes, an increase of 31%
◦Average sales price of homes delivered of $659,000 compared to $722,000, a decrease of 9%
•Homebuilding gross margin percentage of 23.0% compared to 23.5%, a decrease of 50 basis points
◦Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 26.4%*
•SG&A expense as a percentage of home sales revenue of 11.1% compared to 11.5%, a decrease of 40 basis points
•Net new home orders of 1,814 compared to 1,619, an increase of 12%
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•Active selling communities averaged 153.8 compared to 136.0, an increase of 13%
◦Net new home orders per average selling community were 11.8 orders (3.9 monthly) compared to 11.9 orders (4.0 monthly)
◦Cancellation rate of 7% compared to 10%
•Backlog units at quarter end of 2,741 homes compared to 2,026, an increase of 35%
◦Dollar value of backlog at quarter end of $2.0 billion compared to $1.5 billion, an increase of 30%
◦Average sales price of homes in backlog at quarter end of $712,000 compared to $742,000, a decrease of 4%
•Ratios of debt-to-capital and net debt-to-net capital of 31.2% and 12.6%*, respectively, as of March 31, 2024
•Repurchased 1,442,785 shares of common stock at a weighted average price per share of $34.66 for an aggregate dollar amount of $50.0 million in the three months ended March 31, 2024
•Ended the first quarter of 2024 with total liquidity of $1.6 billion, including cash and cash equivalents of $944.0 million and $703.2 million of availability under our revolving credit facility
 
*See “Reconciliation of Non-GAAP Financial Measures”
Outlook
For the second quarter, the Company anticipates delivering between 1,500 and 1,600 homes at an average sales price between $670,000 and $680,000. The Company expects homebuilding gross margin percentage to be in the range of 22.5% to 23.5% for the second quarter and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 11.0% to 11.5%. Finally, the Company expects its effective tax rate for the second quarter to be approximately 26.0%.
For the full year, the Company anticipates delivering between 6,200 and 6,400 homes at an average sales price between $660,000 and $670,000. The Company expects homebuilding gross margin percentage to be in the range of 22.5% to 23.5% for the full year and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 10.5% to 11.0%. Finally, the Company expects its effective tax rate for the full year to be approximately 26.0%.
Earnings Conference Call
The Company will host a conference call via live webcast for investors and other interested parties beginning at 10:00 a.m. Eastern Time on Thursday, April 25, 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, Executive Vice President and Chief Marketing Officer. Interested parties can listen to the call live and view the related slides on the Internet under the Events & Presentations heading in the Investors section of the Company’s website at www.TriPointeHomes.com. Listeners should go to the website at least fifteen minutes prior to the call to download and install any necessary audio software. The call can also be accessed toll free at (877) 407-3982, or (201) 493-6780 for international participants. Participants should ask for the Tri Pointe Homes First Quarter 2024 Earnings Conference Call. Those dialing in should do so at least ten minutes prior to the start of the call. A replay of the call will be available for two weeks following the call toll free at (844) 512-2921, or (412) 317-6671 for international participants, using the reference number 13745505. An archive of the webcast will also be available on the Company’s website for a limited time.
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About Tri Pointe Homes, Inc.
One of the largest homebuilders in the U.S., Tri Pointe Homes, Inc. (NYSE: TPH) is a publicly traded company operating in 12 states and the District of Columbia, and is a recognized leader in customer experience, innovative design, and environmentally responsible business practices. The company builds premium homes and communities 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, home affordability, inflation, consumer sentiment, availability of financing for home mortgages and strength of the U.S. dollar; market demand for our products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions; the availability of desirable and reasonably priced land and our ability to control, purchase, hold and develop such parcels; access to adequate capital on acceptable terms; geographic concentration of our operations; levels of competition; the successful execution of our internal performance plans, including restructuring and cost reduction initiatives; the prices and availability of supply chain inputs, including raw materials, labor and home components; oil and other energy prices; the effects of U.S. trade policies, including the imposition of tariffs and duties on homebuilding products and retaliatory measures taken by other countries; the effects of weather, including the occurrence of drought conditions in parts of the western United States; the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other natural disasters, and the risk of delays, reduced consumer demand, and shortages and price increases in labor or materials associated with such natural disasters; the risk of loss from acts of war, terrorism, civil unrest or public health emergencies, including outbreaks of contagious disease, such as COVID-19; transportation costs; federal and state tax policies; the effects of land use, environment and other governmental laws and regulations; legal proceedings or disputes and the adequacy of reserves; risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, synergies, indebtedness, financial condition, losses and future prospects; changes in accounting principles; risks related to unauthorized access to our computer systems, theft of our homebuyers’ confidential information or other forms of cyber-attack; and additional factors discussed under the sections captioned “Risk Factors” included in our annual and quarterly reports filed with the Securities and Exchange Commission. The foregoing list is not exhaustive. New risk factors may emerge from time
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to time and it is not possible for management to predict all such risk factors or to assess the impact of such risk factors on our business.

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

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KEY OPERATIONS AND FINANCIAL DATA
(dollars in thousands)
(unaudited)
Three Months Ended March 31,
20242023Change% Change
Operating Data:(unaudited)
Home sales revenue$918,353 $768,405 $149,948 20 %
Homebuilding gross margin$211,049 $180,287 $30,762 17 %
Homebuilding gross margin %23.0 %23.5 %(0.5)%
Adjusted homebuilding gross margin %*26.4 %26.2 %0.2 %
SG&A expense$101,552 $88,228 $13,324 15 %
SG&A expense as a % of home sales revenue11.1 %11.5 %(0.4)%
Net income available to common stockholders$99,055 $74,742 $24,313 33 %
Adjusted EBITDA*$175,893 $133,975 $41,918 31 %
Interest incurred$36,156 $37,479 $(1,323)(4)%
Interest in cost of home sales$30,649 $20,226 $10,423 52 %
Other Data:
Net new home orders1,814 1,619 195 12 %
New homes delivered1,393 1,065 328 31 %
Average sales price of homes delivered$659 $722 $(63)(9)%
Cancellation rate7 %10 %(3)%
Average selling communities153.8 136.0 17.8 13 %
Selling communities at end of period156 136 20 15 %
Backlog (estimated dollar value)$1,950,590 $1,503,382 $447,208 30 %
Backlog (homes)2,741 2,026 715 35 %
Average sales price in backlog$712 $742 $(30)(4)%
March 31,December 31,
20242023Change% Change
Balance Sheet Data:(unaudited)
Cash and cash equivalents$943,998 $868,953 $75,045 9 %
Real estate inventories$3,422,883 $3,337,483 $85,400 3 %
Lots owned or controlled34,153 31,960 2,193 7 %
Homes under construction (1)
3,317 3,088 229 7 %
Homes completed, unsold232 263 (31)(12)%
Debt$1,383,529 $1,382,586 $943 0 %
Stockholders’ equity$3,049,646 $3,010,958 $38,688 1 %
Book capitalization$4,433,175 $4,393,544 $39,631 1 %
Ratio of debt-to-capital31.2 %31.5 %(0.3)%
Ratio of net debt-to-net capital*12.6 %14.6 %(2.0)%
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(1)     Homes under construction included 60 and 69 models as of March 31, 2024 and December 31, 2023, respectively.
*    See “Reconciliation of Non-GAAP Financial Measures”
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CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
 
March 31,December 31,
20242023
Assets(unaudited)
Cash and cash equivalents$943,998 $868,953 
Receivables125,133 224,636 
Real estate inventories3,422,883 3,337,483 
Investments in unconsolidated entities124,723 131,824 
Goodwill and other intangible assets, net156,603 156,603 
Deferred tax assets, net37,996 37,996 
Other assets158,639 157,093 
Total assets$4,969,975 $4,914,588 
Liabilities
Accounts payable$51,736 $64,833 
Accrued expenses and other liabilities485,052 453,531 
Loans payable288,337 288,337 
Senior notes1,095,192 1,094,249 
Total liabilities1,920,317 1,900,950 
Commitments and contingencies
Equity
Stockholders’ equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively— — 
Common stock, $0.01 par value, 500,000,000 shares authorized; 94,877,377 and 95,530,512 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively949 955 
Additional paid-in capital— — 
Retained earnings3,048,697 3,010,003 
Total stockholders’ equity
3,049,646 3,010,958 
Noncontrolling interests12 2,680 
Total equity3,049,658 3,013,638 
Total liabilities and equity$4,969,975 $4,914,588 


 
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CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
 
 Three Months Ended March 31,
 20242023
Homebuilding:  
Home sales revenue$918,353 $768,405 
Land and lot sales revenue7,068 1,706 
Other operations revenue787 674 
Total revenues926,208 770,785 
Cost of home sales707,304 588,118 
Cost of land and lot sales5,757 1,443 
Other operations expense765 665 
Sales and marketing50,224 41,862 
General and administrative51,328 46,366 
Homebuilding income from operations110,830 92,331 
Equity in income of unconsolidated entities57 227 
Other income, net15,226 7,604 
Homebuilding income before income taxes126,113 100,162 
Financial Services:
Revenues13,194 8,876 
Expenses8,727 5,831 
Financial services income before income taxes4,467 3,045 
Income before income taxes130,580 103,207 
Provision for income taxes(31,584)(27,350)
Net income98,996 75,857 
Net income attributable to noncontrolling interests59 (1,115)
Net income available to common stockholders$99,055 $74,742 
Earnings per share 
Basic$1.04 $0.74 
Diluted$1.03 $0.73 
Weighted average shares outstanding 
Basic95,232,315 101,019,253 
Diluted95,846,756 101,706,438 
 
 
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MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY
(dollars in thousands)
(unaudited)
 
Three Months Ended March 31,
20242023
New
Homes
Delivered		Average
Sales
Price		New
Homes
Delivered		Average
Sales
Price
Arizona137 $736 135 $785 
California417 771 339 829 
Nevada113 684 98 761 
Washington53 901 18 956 
West total720 760 590 811 
Colorado42 738 44 788 
Texas440 549 210 625 
Central total482 565 254 653 
Carolinas(1)174 462 175 438 
Washington D.C. Area(2)17 1,056 46 1,023 
East total191 515 221 560 
Total1,393 $659 1,065 $722 
Three Months Ended March 31,
20242023
Net New
Home
Orders		Average
Selling
Communities		Net New
Home
Orders		Average
Selling
Communities
Arizona156 12.2 117 13.0 
California613 46.0 701 53.2 
Nevada154 9.5 84 7.0 
Washington107 5.8 52 5.0 
West total1,030 73.5 954 78.2 
Colorado47 11.0 41 6.0 
Texas483 52.5 314 33.8 
Central total530 63.5 355 39.8 
Carolinas(1)179 11.5 251 14.5 
Washington D.C. Area(2)75 5.3 59 3.5 
East total254 16.8 310 18.0 
Total1,814 153.8 1,619 136.0 
(1)     Carolinas comprises North Carolina and South Carolina.
(2)     Washington D.C. Area comprises Maryland, Virginia and the District of Columbia.

 
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MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY, continued
(dollars in thousands)
(unaudited)
 
As of March 31, 2024As of March 31, 2023
Backlog
Units		Backlog
Dollar
Value		Average
Sales
Price		Backlog
Units		Backlog
Dollar
Value		Average
Sales
Price
Arizona278 $205,547 $739 360 $308,514 $857 
California894 713,036 798 660 506,979 768 
Nevada172 105,211 612 111 86,919 783 
Washington144 130,336 905 69 61,148 886 
West total1,488 1,154,130 776 1,200 963,560 803 
Colorado53 36,840 695 47 35,511 756 
Texas749 442,134 590 386 236,386 612 
Central total802 478,974 597 433 271,897 628 
Carolinas(1)287 148,286 517 296 139,815 472 
Washington D.C. Area(2)164 169,200 1,032 97 128,110 1,321 
East total451 317,486 704 393 267,925 682 
Total2,741 $1,950,590 $712 2,026 $1,503,382 $742 
March 31,December 31,
20242023
Lots Owned or Controlled:
Arizona2,258 2,394 
California10,846 10,148 
Nevada1,771 1,785 
Washington659 712 
West total15,534 15,039 
Colorado2,517 1,908 
Texas10,321 10,056 
Utah61 — 
Central total12,899 11,964 
Carolinas(1)4,457 4,038 
Washington D.C. Area(2)1,263 919 
East total5,720 4,957 
Total34,153 31,960 
March 31,December 31,
20242023
Lots by Ownership Type:
Lots owned18,480 18,739 
Lots controlled (3)15,673 13,221 
Total34,153 31,960 

(1)     Carolinas comprises North Carolina and South Carolina.
(2)     Washington D.C. Area comprises Maryland, Virginia and the District of Columbia.
(3)     As of March 31, 2024 and December 31, 2023, lots controlled included lots that were under land option contracts or purchase contracts. As of March 31, 2024 and December 31, 2023, lots controlled for Central include 3,566 and 3,561 lots, respectively, and lots controlled for East include 58 and 71 lots, respectively, which represent our expected share of lots owned by our investments in unconsolidated land development joint ventures.
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(unaudited)
In this press release, we utilize certain financial measures that are non-GAAP financial measures as defined by the Securities and Exchange Commission. We present these measures because we believe they and similar measures are useful to management and investors in evaluating the Company’s operating performance and financing structure. We also believe these measures facilitate the comparison of our operating performance and financing structure with other companies in our industry. Because these measures are not calculated in accordance with Generally Accepted Accounting Principles (“GAAP”), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
The following table reconciles the homebuilding gross margin percentage, as reported and prepared in accordance with GAAP, to the non-GAAP measure adjusted homebuilding gross margin percentage. We believe this information is meaningful as it isolates the impact that leverage has on homebuilding gross margin and permits investors to make better comparisons with our competitors, who adjust gross margins in a similar fashion.
 
Three Months Ended March 31,
2024%2023%
(dollars in thousands)
Home sales revenue$918,353 100.0 %$768,405 100.0 %
Cost of home sales707,304 77.0 %588,118 76.5 %
Homebuilding gross margin211,049 23.0 %180,287 23.5 %
Add:  interest in cost of home sales30,649 3.3 %20,226 2.6 %
Add:  impairments and lot option abandonments402 0.0 %717 0.1 %
Adjusted homebuilding gross margin$242,100 26.4 %$201,230 26.2 %
Homebuilding gross margin percentage23.0 % 23.5 % 
Adjusted homebuilding gross margin percentage26.4 % 26.2 % 






















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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
(unaudited)
 
The following table reconciles the Company’s ratio of debt-to-capital to the non-GAAP ratio of net debt-to-net capital. We believe that the ratio of net debt-to-net capital is a relevant financial measure for management and investors to understand the leverage employed in our operations and as an indicator of the Company’s ability to obtain financing.
 
March 31, 2024December 31, 2023
Loans payable$288,337 $288,337 
Senior notes1,095,192 1,094,249 
Total debt1,383,529 1,382,586 
Stockholders’ equity3,049,646 3,010,958 
Total capital$4,433,175 $4,393,544 
Ratio of debt-to-capital(1)
31.2 %31.5 %
Total debt$1,383,529 $1,382,586 
Less: Cash and cash equivalents(943,998)(868,953)
Net debt439,531 513,633 
Stockholders’ equity3,049,646 3,010,958 
Net capital$3,489,177 $3,524,591 
Ratio of net debt-to-net capital(2)
12.6 %14.6 %
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(1)    The ratio of debt-to-capital is computed as the quotient obtained by dividing total debt by the sum of total debt plus stockholders’ equity.
(2)    The ratio of net debt-to-net capital is computed as the quotient obtained by dividing net debt (which is total debt less cash and cash equivalents) by the sum of net debt plus stockholders’ equity.


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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
(unaudited)
 
The following table calculates the non-GAAP financial measures of EBITDA and Adjusted EBITDA and reconciles those amounts to net income available to common stockholders, as reported and prepared in accordance with GAAP. EBITDA means net income available to common stockholders before (a) interest expense, (b) expensing of previously capitalized interest included in costs of home sales, (c) income taxes and (d) depreciation and amortization. Adjusted EBITDA means EBITDA before (e) amortization of stock-based compensation and (f) 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 March 31,
20242023
(in thousands)
Net income available to common stockholders$99,055 $74,742 
Interest expense:
Interest incurred36,156 37,479 
Interest capitalized(36,156)(37,479)
Amortization of interest in cost of sales30,846 20,251 
Provision for income taxes31,584 27,350 
Depreciation and amortization7,327 7,054 
EBITDA168,812 129,397 
Amortization of stock-based compensation6,679 3,861 
Impairments and lot option abandonments402 717 
Adjusted EBITDA$175,893 $133,975 
 
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