Tri Pointe Homes, Inc. Reports 2024 Third Quarter Results
Tri Pointe Homes reported strong Q3 2024 results with home sales revenue increasing 35% to $1.1 billion and new home deliveries rising 32% to 1,619 units. The company achieved a homebuilding gross margin of 23.3%, up 100 basis points year-over-year, and diluted earnings per share of $1.18, representing a 55% increase. The average sales price increased 2% to $688,000, while SG&A expense decreased to 10.8% of home sales revenue. The company maintained a strong financial position with a record low homebuilding debt-to-capital ratio of 22.1% and total liquidity of $1.4 billion.
Tri Pointe Homes ha riportato risultati solidi per il terzo trimestre del 2024, con un fatturato dalle vendite di case aumentato del 35% a 1,1 miliardi di dollari e consegne di nuove abitazioni in crescita del 32% raggiungendo 1.619 unità. L'azienda ha ottenuto un margine lordo sulla costruzione di abitazioni del 23,3%, in aumento di 100 punti base rispetto all'anno precedente, e un utile diluito per azione di 1,18 dollari, che rappresenta un aumento del 55%. Il prezzo medio di vendita è aumentato del 2% a 688.000 dollari, mentre le spese di SG&A sono scese al 10,8% del fatturato delle vendite di case. L'azienda ha mantenuto una solida posizione finanziaria con un record minimo del rapporto debito sul capitale per la costruzione di abitazioni del 22,1% e una liquidità totale di 1,4 miliardi di dollari.
Tri Pointe Homes reportó resultados sólidos en el tercer trimestre de 2024, con un aumento del ingreso por ventas de casas del 35% a 1.1 mil millones de dólares y entregas de nuevas viviendas en aumento del 32% a 1,619 unidades. La empresa logró un margen bruto de construcción de viviendas del 23.3%, un aumento de 100 puntos base en comparación con el año anterior, y un beneficio por acción diluido de 1.18 dólares, lo que representa un aumento del 55%. El precio medio de venta aumentó un 2% a 688,000 dólares, mientras que los gastos de SG&A disminuyeron al 10.8% del ingreso por ventas de casas. La empresa mantuvo una sólida posición financiera con un récord mínimo en la relación deuda-capital de construcción de viviendas del 22.1% y una liquidez total de 1.4 mil millones de dólares.
Tri Pointe Homes는 2024년 3분기에 강력한 실적을 발표했습니다. 주택 판매 수익이 35% 증가하여 11억 달러에 이르고, 새로운 주택 인도는 32% 증가하여 1,619단위에 도달했습니다. 회사는 주택 건설 총 마진이 23.3%에 이르며, 작년 대비 100 베이시스 포인트 증가했으며, 희석 주당 순이익은 1.18달러로 55% 증가했습니다. 평균 판매 가격은 2% 증가하여 688,000달러에 이르렀고, SG&A 비용은 주택 판매 수익의 10.8%로 줄어들었습니다. 회사는 22.1%라는 기록적인 주택 건설 부채-자본 비율과 총 유동성 14억 달러로 강력한 재무 상태를 유지했습니다.
Tri Pointe Homes a annoncé de solides résultats pour le troisième trimestre 2024, avec un chiffre d'affaires des ventes de maisons en hausse de 35% pour atteindre 1,1 milliard de dollars et des livraisons de nouvelles maisons en hausse de 32% à 1 619 unités. L'entreprise a réalisé une marge brute de construction de 23,3%, soit une augmentation de 100 points de base par rapport à l'année précédente, et un bénéfice dilué par action de 1,18 dollar, représentant une hausse de 55%. Le prix de vente moyen a augmenté de 2% pour atteindre 688 000 dollars, tandis que les dépenses SG&A ont diminué à 10,8% du chiffre d'affaires des ventes de maisons. L'entreprise a maintenu une position financière solide avec un ratio d'endettement historique bas de 22,1% dans la construction de maisons et une liquidité totale de 1,4 milliard de dollars.
Tri Pointe Homes berichtete über starke Ergebnisse im dritten Quartal 2024, mit einem Umsatz aus Wohnungsverkäufen, der um 35% auf 1,1 Milliarden Dollar gestiegen ist, und Lieferungen neuer Häuser, die um 32% auf 1.619 Einheiten zugenommen haben. Das Unternehmen erzielte eine Bruttomarge im Wohnungsbau von 23,3%, was einem Anstieg von 100 Basispunkten im Jahresvergleich entspricht, und einen verwässerten Gewinn pro Aktie von 1,18 Dollar, was einem Anstieg von 55% entspricht. Der durchschnittliche Verkaufspreis stieg um 2% auf 688.000 Dollar, während die SG&A-Ausgaben auf 10,8% des Umsatzes aus Wohnungsverkäufen sanken. Das Unternehmen behielt eine starke Finanzlage mit einem rekordniedrigen Verhältnis von Bauverschuldung zu Kapital von 22,1% und einer Gesamtliquidität von 1,4 Milliarden Dollar bei.
- Home sales revenue increased 35% to $1.1 billion
- New home deliveries up 32% to 1,619 units
- Gross margin improved 100 basis points to 23.3%
- Diluted EPS grew 55% to $1.18
- Average sales price increased 2% to $688,000
- SG&A expense decreased to 10.8% from 12.3%
- Record low homebuilding debt-to-capital ratio of 22.1%
- Net new home orders decreased 17% to 1,252
- Backlog units declined 24% to 2,325 homes
- Dollar value of backlog decreased 18% to $1.7 billion
- Active selling communities decreased 3% to 150.0
Insights
The Q3 2024 results showcase impressive operational performance with several key highlights: home sales revenue surged 35% to
The company's balance sheet strength is notable, with homebuilding debt-to-capital ratio reaching a record low of
The housing market dynamics remain favorable despite higher interest rates, as evidenced by TPH's maintained
The forward guidance for Q4 2024 indicates continued strong execution, with expected deliveries of 1,600-1,800 homes and maintained robust margins. The full-year outlook of 6,300-6,500 deliveries at
-New Home Deliveries of 1,619-
-Home Sales Revenue of
-Homebuilding Gross Margin Percentage of
-Diluted Earnings Per Share of
-Homebuilding Debt-to-Capital Ratio Reduced to Record Low of
INCLINE VILLAGE, Nev., Oct. 24, 2024 (GLOBE NEWSWIRE) -- Tri Pointe Homes, Inc. (the “Company”) (NYSE:TPH) today announced results for the third quarter ended September 30, 2024.
“Tri Pointe Homes once again delivered excellent financial results for the third quarter,” said Doug Bauer, Tri Pointe Homes Chief Executive Officer. “We achieved a
Mr. Bauer continued, “Building on a strong third quarter, we remain focused on scaling efficiency across existing markets, while continuing to drive operational improvements that bolster long-term profitability and returns. Additionally, our recent strategic expansion into three new markets positions us for further geographic diversification and top-line growth, allowing us to capture emerging opportunities as the housing industry remains well-positioned. We ended the quarter with a net homebuilding debt-to-net capital ratio of
“Tri Pointe Homes is well-positioned to capitalize on the strong fundamentals driving the homebuilding industry,” said Tom Mitchell, Tri Pointe Homes President and Chief Operating Officer. “With a solid financial foundation, the right strategic plan in place, and highly skilled teams across the country, we remain focused on optimizing asset turns and generating strong cash flows, which will fuel further growth. The housing market fundamentals, including favorable demographics and a persistent supply-demand imbalance, create a supportive environment for sustained success. As we execute our strategy, we are confident in our ability to deliver value while maintaining our focus on operational and financial discipline.”
Results and Operational Data for Third Quarter 2024 and Comparisons to Third Quarter 2023
- Net income available to common stockholders was
$111.8 million , or$1.18 per diluted share, compared to$75.4 million , or$0.76 per diluted share - Home sales revenue of
$1.1 billion compared to$825.3 million , an increase of35% - New home deliveries of 1,619 homes compared to 1,223 homes, an increase of
32% - Average sales price of homes delivered of
$688,000 compared to$675,000 , an increase of2%
- New home deliveries of 1,619 homes compared to 1,223 homes, an increase of
- Homebuilding gross margin percentage of
23.3% compared to22.3% , an increase of 100 basis points- Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was
26.8% *
- Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was
- SG&A expense as a percentage of home sales revenue of
10.8% compared to12.3% , a decrease of 150 basis points - Net new home orders of 1,252 compared to 1,513, a decrease of
17% - Active selling communities averaged 150.0 compared to 154.8, a decrease of
3% - Net new home orders per average selling community were 8.3 orders (2.8 monthly) compared to 9.8 orders (3.3 monthly)
- Cancellation rate steady at
10% in both periods
- Backlog units at quarter end of 2,325 homes compared to 3,055, a decrease of
24% - Dollar value of backlog at quarter end of
$1.7 billion compared to$2.1 billion , a decrease of18% - Average sales price of homes in backlog at quarter end of
$745,000 compared to$693,000 , an increase of8%
- Dollar value of backlog at quarter end of
- Ratios of homebuilding debt-to-capital and net homebuilding debt-to-net capital of
22.1% and7.0% *, respectively, as of September 30, 2024 - Repurchased 272,777 shares of common stock at a weighted average price per share of
$36.24 for an aggregate dollar amount of$9.9 million in the three months ended September 30, 2024 - Ended the third quarter of 2024 with total liquidity of
$1.4 billion , including cash and cash equivalents of$676.0 million and$698.1 million of availability under our revolving credit facility
| * | See “Reconciliation of Non-GAAP Financial Measures” |
Outlook
For the fourth quarter, the Company anticipates delivering between 1,600 and 1,800 homes at an average sales price between
For the full year, the Company anticipates delivering between 6,300 and 6,500 homes at an average sales price of approximately
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, October 24, 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 Third 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 13749196. An archive of the webcast will also be available on the Company’s website for a limited time.
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 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
| KEY OPERATIONS AND FINANCIAL DATA (dollars in thousands) (unaudited) | |||||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | 2024 | 2023 | Change | % Change | ||||||||||||||||||||||
| Operating Data: | (unaudited) | ||||||||||||||||||||||||||||
| Home sales revenue | $ | 1,113,681 | $ | 825,295 | $ | 288,386 | 35 | % | $ | 3,165,042 | $ | 2,412,777 | $ | 752,265 | 31 | % | |||||||||||||
| Homebuilding gross margin | $ | 259,182 | $ | 184,221 | $ | 74,961 | 41 | % | $ | 737,558 | $ | 531,586 | $ | 205,972 | 39 | % | |||||||||||||
| Homebuilding gross margin % | 23.3 | % | 22.3 | % | 1.0 | % | 23.3 | % | 22.0 | % | 1.3 | % | |||||||||||||||||
| Adjusted homebuilding gross margin %* | 26.8 | % | 25.6 | % | 1.2 | % | 26.8 | % | 25.6 | % | 1.2 | % | |||||||||||||||||
| SG&A expense | $ | 120,478 | $ | 101,233 | $ | 19,245 | 19 | % | $ | 346,581 | $ | 286,926 | $ | 59,655 | 21 | % | |||||||||||||
| SG&A expense as a % of home sales revenue | 10.8 | % | 12.3 | % | (1.5) % | 11.0 | % | 11.9 | % | (0.9) % | |||||||||||||||||||
| Net income available to common stockholders | $ | 111,759 | $ | 75,402 | $ | 36,357 | 48 | % | $ | 328,816 | $ | 210,868 | $ | 117,948 | 56 | % | |||||||||||||
| Adjusted EBITDA* | $ | 208,639 | $ | 139,678 | $ | 68,961 | 49 | % | $ | 600,530 | $ | 403,581 | $ | 196,949 | 49 | % | |||||||||||||
| Interest incurred | $ | 25,253 | $ | 36,919 | $ | (11,666 | ) | (32)% | $ | 91,787 | $ | 111,792 | $ | (20,005 | ) | (18) % | |||||||||||||
| Interest in cost of home sales | $ | 37,687 | $ | 27,035 | $ | 10,652 | 39 | % | $ | 107,330 | $ | 72,627 | $ | 34,703 | 48 | % | |||||||||||||
| Other Data: | |||||||||||||||||||||||||||||
| Net new home orders | 1,252 | 1,513 | (261 | ) | (17) % | 4,717 | 5,044 | (327 | ) | (6) % | |||||||||||||||||||
| New homes delivered | 1,619 | 1,223 | 396 | 32 | % | 4,712 | 3,461 | 1,251 | 36 | % | |||||||||||||||||||
| Average sales price of homes delivered | $ | 688 | $ | 675 | $ | 13 | 2 | % | $ | 672 | $ | 697 | $ | (25 | ) | (4) % | |||||||||||||
| Cancellation rate | 10 | % | 10 | % | 0 | % | 8 | % | 9 | % | (1) % | ||||||||||||||||||
| Average selling communities | 150.0 | 154.8 | (4.8 | ) | (3)% | 151.6 | 144.3 | 7.3 | 5 | % | |||||||||||||||||||
| Selling communities at end of period | 148 | 163 | (15 | ) | (9)% | ||||||||||||||||||||||||
| Backlog (estimated dollar value) | $ | 1,731,590 | $ | 2,117,319 | $ | (385,729 | ) | (18)% | |||||||||||||||||||||
| Backlog (homes) | 2,325 | 3,055 | (730 | ) | (24)% | ||||||||||||||||||||||||
| Average sales price in backlog | $ | 745 | $ | 693 | $ | 52 | 8 | % | |||||||||||||||||||||
| September 30, | December 31, | ||||||||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||||||||
| Balance Sheet Data: | (unaudited) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 675,957 | $ | 868,953 | $ | (192,996 | ) | (22) % | |||||||||||||||||||||
| Real estate inventories | $ | 3,412,633 | $ | 3,337,483 | $ | 75,150 | 2 | % | |||||||||||||||||||||
| Lots owned or controlled | 33,488 | 31,960 | 1,528 | 5 | % | ||||||||||||||||||||||||
| Homes under construction (1) | 3,009 | 3,088 | (79 | ) | (3) % | ||||||||||||||||||||||||
| Homes completed, unsold | 313 | 263 | 50 | 19 | % | ||||||||||||||||||||||||
| Total homebuilding debt | $ | 922,194 | $ | 1,382,586 | $ | (460,392 | ) | (33)% | |||||||||||||||||||||
| Stockholders’ equity | $ | 3,249,952 | $ | 3,010,958 | $ | 238,994 | 8 | % | |||||||||||||||||||||
| Book capitalization | $ | 4,172,146 | $ | 4,393,544 | $ | (221,398 | ) | (5)% | |||||||||||||||||||||
| Ratio of homebuilding debt-to-capital | 22.1 | % | 31.5 | % | (9.4)% | ||||||||||||||||||||||||
| Ratio of net homebuilding debt-to-net capital* | 7.0 | % | 14.6 | % | (7.6)% | ||||||||||||||||||||||||
__________
(1) Homes under construction included 44 and 69 models as of September 30, 2024 and December 31, 2023, respectively.
* See “Reconciliation of Non-GAAP Financial Measures”
| CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) | |||||
| September 30, | December 31, | ||||
| 2024 | 2023 | ||||
| Assets | (unaudited) | ||||
| Cash and cash equivalents | $ | 675,957 | $ | 868,953 | |
| Receivables | 113,725 | 224,636 | |||
| Real estate inventories | 3,412,633 | 3,337,483 | |||
| Investments in unconsolidated entities | 130,798 | 131,824 | |||
| Mortgage loans held for sale | 80,071 | — | |||
| Goodwill and other intangible assets, net | 156,603 | 156,603 | |||
| Deferred tax assets, net | 37,996 | 37,996 | |||
| Other assets | 171,472 | 157,093 | |||
| Total assets | $ | 4,779,255 | $ | 4,914,588 | |
| Liabilities | |||||
| Accounts payable | $ | 75,214 | $ | 64,833 | |
| Accrued expenses and other liabilities | 456,418 | 453,531 | |||
| Loans payable | 275,914 | 288,337 | |||
| Senior notes | 646,280 | 1,094,249 | |||
| Mortgage repurchase facilities | 75,465 | — | |||
| Total liabilities | 1,529,291 | 1,900,950 | |||
| Commitments and contingencies | |||||
| Equity | |||||
| Stockholders’ equity: | |||||
| Preferred stock, | — | — | |||
| Common stock, | 936 | 955 | |||
| Additional paid-in capital | — | — | |||
| Retained earnings | 3,249,016 | 3,010,003 | |||
| Total stockholders’ equity | 3,249,952 | 3,010,958 | |||
| Noncontrolling interests | 12 | 2,680 | |||
| Total equity | 3,249,964 | 3,013,638 | |||
| Total liabilities and equity | $ | 4,779,255 | $ | 4,914,588 | |
| CONSOLIDATED STATEMENT OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) | |||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Homebuilding: | |||||||||||
| Home sales revenue | $ | 1,113,681 | $ | 825,295 | $ | 3,165,042 | $ | 2,412,777 | |||
| Land and lot sales revenue | 12,552 | 1,714 | 23,780 | 10,506 | |||||||
| Other operations revenue | 790 | 749 | 2,359 | 2,219 | |||||||
| Total revenues | 1,127,023 | 827,758 | 3,191,181 | 2,425,502 | |||||||
| Cost of home sales | 854,499 | 641,074 | 2,427,484 | 1,881,191 | |||||||
| Cost of land and lot sales | 11,986 | 1,474 | 21,584 | 10,287 | |||||||
| Other operations expense | 765 | 724 | 2,295 | 2,171 | |||||||
| Sales and marketing | 53,744 | 42,874 | 160,772 | 127,977 | |||||||
| General and administrative | 66,734 | 58,359 | 185,809 | 158,949 | |||||||
| Homebuilding income from operations | 139,295 | 83,253 | 393,237 | 244,927 | |||||||
| Equity in income of unconsolidated entities | 227 | 3 | 383 | 272 | |||||||
| Other income, net | 6,658 | 11,664 | 31,818 | 30,361 | |||||||
| Homebuilding income before income taxes | 146,180 | 94,920 | 425,438 | 275,560 | |||||||
| Financial Services: | |||||||||||
| Revenues | 17,650 | 10,758 | 47,818 | 30,004 | |||||||
| Expenses | 12,283 | 6,127 | 31,900 | 19,363 | |||||||
| Financial services income before income taxes | 5,367 | 4,631 | 15,918 | 10,641 | |||||||
| Income before income taxes | 151,547 | 99,551 | 441,356 | 286,201 | |||||||
| Provision for income taxes | (39,788) | (22,942) | (112,599) | (71,764) | |||||||
| Net income | 111,759 | 76,609 | 328,757 | 214,437 | |||||||
| Net (income) loss attributable to noncontrolling interests | — | (1,207) | 59 | (3,569) | |||||||
| Net income available to common stockholders | $ | 111,759 | $ | 75,402 | $ | 328,816 | $ | 210,868 | |||
| Earnings per share | |||||||||||
| Basic | $ | 1.19 | $ | 0.77 | $ | 3.49 | $ | 2.12 | |||
| Diluted | $ | 1.18 | $ | 0.76 | $ | 3.46 | $ | 2.10 | |||
| Weighted average shares outstanding | |||||||||||
| Basic | 93,600,678 | 98,018,498 | 94,294,800 | 99,534,570 | |||||||
| Diluted | 94,640,211 | 99,030,210 | 95,081,173 | 100,458,357 | |||||||
| MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY (dollars in thousands) (unaudited) | |||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| New Homes Delivered | Average Sales Price | New Homes Delivered | Average Sales Price | New Homes Delivered | Average Sales Price | New Homes Delivered | Average Sales Price | ||||||||||||
| Arizona | 95 | $ | 743 | 167 | $ | 809 | 372 | $ | 728 | 497 | $ | 785 | |||||||
| California | 620 | 765 | 425 | 683 | 1,607 | 765 | 1,116 | 764 | |||||||||||
| Nevada | 133 | 579 | 103 | 749 | 363 | 633 | 289 | 751 | |||||||||||
| Washington | 70 | 880 | 48 | 847 | 197 | 884 | 106 | 823 | |||||||||||
| West total | 918 | 744 | 743 | 731 | 2,539 | 750 | 2,008 | 770 | |||||||||||
| Colorado | 38 | 719 | 17 | 733 | 133 | 708 | 110 | 754 | |||||||||||
| Texas | 417 | 550 | 287 | 527 | 1,332 | 552 | 775 | 565 | |||||||||||
| Central total | 455 | 564 | 304 | 538 | 1,465 | 566 | 885 | 589 | |||||||||||
| Carolinas(1) | 144 | 498 | 122 | 445 | 526 | 483 | 439 | 454 | |||||||||||
| Washington D.C. Area(2) | 102 | 1,002 | 54 | 1,185 | 182 | 973 | 129 | 1,125 | |||||||||||
| East total | 246 | 707 | 176 | 672 | 708 | 609 | 568 | 607 | |||||||||||
| Total | 1,619 | $ | 688 | 1,223 | $ | 675 | 4,712 | $ | 672 | 3,461 | $ | 697 | |||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| 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 | ||||||||||||
| Arizona | 126 | 15.0 | 129 | 14.0 | 464 | 14.0 | 435 | 13.6 | |||||||||||
| California | 418 | 43.4 | 508 | 48.8 | 1,607 | 44.1 | 1,996 | 50.6 | |||||||||||
| Nevada | 71 | 8.0 | 146 | 10.5 | 343 | 8.6 | 335 | 8.6 | |||||||||||
| Washington | 52 | 5.3 | 44 | 5.5 | 236 | 5.6 | 166 | 5.4 | |||||||||||
| West total | 667 | 71.7 | 827 | 78.8 | 2,650 | 72.3 | 2,932 | 78.2 | |||||||||||
| Colorado | 32 | 10.8 | 39 | 9.5 | 104 | 10.7 | 118 | 7.6 | |||||||||||
| Texas | 372 | 50.0 | 454 | 49.0 | 1,296 | 51.5 | 1,262 | 40.8 | |||||||||||
| Central total | 404 | 60.8 | 493 | 58.5 | 1,400 | 62.2 | 1,380 | 48.4 | |||||||||||
| Carolinas(1) | 105 | 10.0 | 139 | 14.5 | 414 | 10.7 | 578 | 14.4 | |||||||||||
| Washington D.C. Area(2) | 76 | 7.5 | 54 | 3.0 | 253 | 6.4 | 154 | 3.3 | |||||||||||
| East total | 181 | 17.5 | 193 | 17.5 | 667 | 17.1 | 732 | 17.7 | |||||||||||
| Total | 1,252 | 150.0 | 1,513 | 154.8 | 4,717 | 151.6 | 5,044 | 144.3 | |||||||||||
(1) Carolinas comprises North Carolina and South Carolina.
(2) Washington D.C. Area comprises Maryland, Virginia and the District of Columbia.
| MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY, continued (dollars in thousands) (unaudited) | |||||||||||||||
| As of September 30, 2024 | As of September 30, 2023 | ||||||||||||||
| Backlog Units | Backlog Dollar Value | Average Sales Price | Backlog Units | Backlog Dollar Value | Average Sales Price | ||||||||||
| Arizona | 351 | $ | 271,255 | $ | 773 | 316 | $ | 233,631 | $ | 739 | |||||
| California | 698 | 549,851 | 788 | 1,178 | 892,158 | 757 | |||||||||
| Nevada | 111 | 62,969 | 567 | 171 | 112,684 | 659 | |||||||||
| Washington | 129 | 133,547 | 1,035 | 95 | 90,768 | 955 | |||||||||
| West total | 1,289 | 1,017,622 | 789 | 1,760 | 1,329,241 | 755 | |||||||||
| Colorado | 19 | 13,654 | 719 | 58 | 39,254 | 677 | |||||||||
| Texas | 670 | 396,253 | 591 | 769 | 448,721 | 584 | |||||||||
| Central total | 689 | 409,907 | 595 | 827 | 487,975 | 590 | |||||||||
| Carolinas(1) | 170 | 96,330 | 567 | 359 | 171,820 | 479 | |||||||||
| Washington D.C. Area(2) | 177 | 207,731 | 1,174 | 109 | 128,283 | 1,177 | |||||||||
| East total | 347 | 304,061 | 876 | 468 | 300,103 | 641 | |||||||||
| Total | 2,325 | $ | 1,731,590 | $ | 745 | 3,055 | $ | 2,117,319 | $ | 693 | |||||
| September 30, | December 31, | ||||||||||||||
| 2024 | 2023 | ||||||||||||||
| Lots Owned or Controlled: | |||||||||||||||
| Arizona | 2,028 | 2,394 | |||||||||||||
| California | 10,564 | 10,148 | |||||||||||||
| Nevada | 1,608 | 1,785 | |||||||||||||
| Washington | 578 | 712 | |||||||||||||
| West total | 14,778 | 15,039 | |||||||||||||
| Colorado | 1,590 | 1,908 | |||||||||||||
| Texas | 10,413 | 10,056 | |||||||||||||
| Utah | 346 | — | |||||||||||||
| Central total | 12,349 | 11,964 | |||||||||||||
| Carolinas(1) | 4,751 | 4,038 | |||||||||||||
| Florida | 256 | — | |||||||||||||
| Washington D.C. Area(2) | 1,354 | 919 | |||||||||||||
| East total | 6,361 | 4,957 | |||||||||||||
| Total | 33,488 | 31,960 | |||||||||||||
| September 30, | December 31, | ||||||||||||||
| 2024 | 2023 | ||||||||||||||
| Lots by Ownership Type: | |||||||||||||||
| Lots owned | 17,153 | 18,739 | |||||||||||||
| Lots controlled (3) | 16,335 | 13,221 | |||||||||||||
| Total | 33,488 | 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 September 30, 2024 and December 31, 2023, lots controlled included lots that were under land option contracts or purchase contracts. As of September 30, 2024 and December 31, 2023, lots controlled for Central include 3,358 and 3,561 lots, respectively, and lots controlled for East include 29 and 71 lots, respectively, which represent our expected share of lots owned by our investments in unconsolidated land development joint ventures.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(unaudited)
In this press release, we utilize certain financial measures that are non-GAAP financial measures as defined by the Securities and Exchange Commission. We present these measures because we believe they and similar measures are useful to management and investors in evaluating the Company’s operating performance and financing structure. We also believe these measures facilitate the comparison of our operating performance and financing structure with other companies in our industry. Because these measures are not calculated in accordance with Generally Accepted Accounting Principles (“GAAP”), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
The following tables reconcile 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 September 30, | |||||||||||||
| 2024 | % | 2023 | % | ||||||||||
| (dollars in thousands) | |||||||||||||
| Home sales revenue | $ | 1,113,681 | 100.0 | % | $ | 825,295 | 100.0 | % | |||||
| Cost of home sales | 854,499 | 76.7 | % | 641,074 | 77.7 | % | |||||||
| Homebuilding gross margin | 259,182 | 23.3 | % | 184,221 | 22.3 | % | |||||||
| Add: interest in cost of home sales | 37,687 | 3.4 | % | 27,035 | 3.3 | % | |||||||
| Add: impairments and lot option abandonments | 1,074 | 0.1 | % | 197 | 0.0 | % | |||||||
| Adjusted homebuilding gross margin | $ | 297,943 | 26.8 | % | $ | 211,453 | 25.6 | % | |||||
| Homebuilding gross margin percentage | 23.3 | % | 22.3 | % | |||||||||
| Adjusted homebuilding gross margin percentage | 26.8 | % | 25.6 | % | |||||||||
| Nine Months Ended September 30, | |||||||||||||
| 2024 | % | 2023 | % | ||||||||||
| (dollars in thousands) | |||||||||||||
| Home sales revenue | $ | 3,165,042 | 100.0 | % | $ | 2,412,777 | 100.0 | % | |||||
| Cost of home sales | 2,427,484 | 76.7 | % | 1,881,191 | 78.0 | % | |||||||
| Homebuilding gross margin | 737,558 | 23.3 | % | 531,586 | 22.0 | % | |||||||
| Add: interest in cost of home sales | 107,330 | 3.4 | % | 72,627 | 3.0 | % | |||||||
| Add: impairments and lot option abandonments | 2,444 | 0.1 | % | 12,675 | 0.5 | % | |||||||
| Adjusted homebuilding gross margin | $ | 847,332 | 26.8 | % | $ | 616,888 | 25.6 | % | |||||
| Homebuilding gross margin percentage | 23.3 | % | 22.0 | % | |||||||||
| Adjusted homebuilding gross margin percentage | 26.8 | % | 25.6 | % | |||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
(unaudited)
The following table reconciles the Company’s ratio of homebuilding debt-to-capital to the non-GAAP ratio of net homebuilding debt-to-net capital. We believe that the ratio of net homebuilding 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.
| September 30, 2024 | December 31, 2023 | ||||||
| Loans payable | $ | 275,914 | $ | 288,337 | |||
| Senior notes | 646,280 | 1,094,249 | |||||
| Mortgage repurchase facilities | 75,465 | — | |||||
| Total debt | 997,659 | 1,382,586 | |||||
| Less: mortgage repurchase facilities | (75,465) | — | |||||
| Total homebuilding debt | 922,194 | 1,382,586 | |||||
| Stockholders’ equity | 3,249,952 | 3,010,958 | |||||
| Total capital | $ | 4,172,146 | $ | 4,393,544 | |||
| Ratio of homebuilding debt-to-capital(1) | |||||||
| Total homebuilding debt | $ | 922,194 | $ | 1,382,586 | |||
| Less: Cash and cash equivalents | (675,957) | (868,953) | |||||
| Net homebuilding debt | 246,237 | 513,633 | |||||
| Stockholders’ equity | 3,249,952 | 3,010,958 | |||||
| Net capital | $ | 3,496,189 | $ | 3,524,591 | |||
| Ratio of net homebuilding debt-to-net capital(2) | |||||||
__________
(1) The ratio of homebuilding debt-to-capital is computed as the quotient obtained by dividing total homebuilding debt by the sum of total homebuilding debt plus stockholders’ equity.
(2) The ratio of net homebuilding debt-to-net capital is computed as the quotient obtained by dividing net homebuilding debt (which is total homebuilding debt less cash and cash equivalents) by the sum of net homebuilding debt plus stockholders’ equity.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
(unaudited)
The following table calculates the non-GAAP financial measures of EBITDA and Adjusted EBITDA and reconciles those amounts to net income available to common stockholders, as reported and prepared in accordance with GAAP. EBITDA means net income available to common stockholders before (a) interest expense, (b) expensing of previously capitalized interest included in costs of home sales, (c) income taxes and (d) depreciation and amortization. Adjusted EBITDA means EBITDA before (e) amortization of stock-based compensation and (f) 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 September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (in thousands) | |||||||||||||||
| Net income available to common stockholders | $ | 111,759 | $ | 75,402 | $ | 328,816 | $ | 210,868 | |||||||
| Interest expense: | |||||||||||||||
| Interest incurred | 25,253 | 36,919 | 91,787 | 111,792 | |||||||||||
| Interest capitalized | (25,253) | (36,919) | (91,787) | (111,792) | |||||||||||
| Amortization of interest in cost of sales | 38,762 | 27,264 | 108,772 | 73,196 | |||||||||||
| Provision for income taxes | 39,788 | 22,942 | 112,599 | 71,764 | |||||||||||
| Depreciation and amortization | 8,548 | 6,884 | 23,572 | 20,066 | |||||||||||
| EBITDA | 198,857 | 132,492 | 573,759 | 375,894 | |||||||||||
| Amortization of stock-based compensation | 8,708 | 6,989 | 24,327 | 15,012 | |||||||||||
| Impairments and lot option abandonments | 1,074 | 197 | 2,444 | 12,675 | |||||||||||
| Adjusted EBITDA | $ | 208,639 | $ | 139,678 | $ | 600,530 | $ | 403,581 | |||||||
FAQ
What was Tri Pointe Homes (TPH) revenue in Q3 2024?
How many homes did TPH deliver in Q3 2024?
What was TPH's earnings per share in Q3 2024?
What is TPH's homebuilding gross margin for Q3 2024?
