-New Home Orders up 21% for the
Quarter- -Reports Net Income Available to
Common Stockholders of $57.9 Million, or $0.36 per Diluted
Share- -Home Sales Revenue of $770.7 Million
for the Quarter- -Homebuilding Gross Margin
of 20.0% for the Quarter-
TRI Pointe Group, Inc. (the "Company") (NYSE:TPH) today announced
results for the fourth quarter ended December 31, 2016 and
full year 2016.
Results and Operational Data for Fourth
Quarter 2016 and Comparisons to Fourth Quarter 2015
- Net income available to common stockholders was $57.9 million,
or $0.36 per diluted share, compared to $85.1 million, or $0.52 per
diluted share
- New home orders of 909 compared to 753, an increase of 21%
- Active selling communities averaged 122.8 compared to 112.8, an
increase of 9% - New home orders per average selling
community increased by 10% to 7.4 orders (2.5 monthly) compared to
6.7 orders (2.2 monthly)- Cancellation rate of 20% compared
to 21%, a decrease of 100 basis points
- Backlog units at quarter end of 1,193 homes compared to 1,156,
an increase of 3% - Dollar value of backlog at quarter end of
$661.1 million compared to $697.3 million, a decrease of 5% -
Average sales price in backlog at quarter end of $554,000
compared to $603,000, a decrease of 8%
- Home sales revenue of $770.7 million compared to $847.4
million, a decrease of 9% - New home deliveries of 1,427
homes compared to 1,453 homes, a decrease of 2% - Average
sales price of homes delivered of $540,000 compared to $583,000, a
decrease of 7%
- Homebuilding gross margin percentage of 20.0% compared to
22.2%, a decrease of 220 basis points - Excluding interest,
impairments and lot option abandonments, adjusted homebuilding
gross margin percentage was 22.2%*
- SG&A expense as a percentage of homes sales revenue of 9.2%
compared to 8.4%, an increase of 80 basis points
- Ratios of debt-to-capital and net debt-to-capital of 43.0% and
39.1%*, respectively, as of December 31, 2016
- Repurchased 1,455,332 shares of common stock at an average
price of $11.66 for an aggregate dollar amount of $17.0 million in
the three months ended December 31, 2016
- Ended fourth quarter of 2016 with cash of $208.7 million
and $420.7 million of availability under the Company's unsecured
revolving credit facility
* See "Reconciliation of Non-GAAP Financial
Measures"
Results and Operational Data for Full Year
2016 and Comparisons to Full Year 2015
- Net income available to common stockholders was $195.2 million,
or $1.21 per diluted share, compared to $205.5 million, or
$1.27 per diluted share
- New home orders of 4,248 compared to 4,181, an increase of
2%
- Active selling communities averaged 118.3 compared to 115.9, an
increase of 2% - New home orders per average selling
community were 35.9 orders (3.0 monthly) compared to 36.1 orders
(3.0 monthly) - Cancellation rate of 15% compared to 16%, a
decrease of 100 basis points
- Home sales revenue of $2.329 billion compared to $2.291
billion, an increase of 2% - New home deliveries of 4,211
homes compared to 4,057 homes, an increase of 4% - Average
sales price of homes delivered of $553,000 compared to $565,000, a
decrease of 2%
- Homebuilding gross margin percentage of 21.2% compared to
21.1%, an increase of 10 basis points - Excluding interest,
impairments and lot option abandonments, adjusted homebuilding
gross margin percentage was 23.4%*
- SG&A expense as a percentage of homes sales revenue of
10.8% compared to 10.2%, an increase of 60 basis points
- Repurchased 3,560,853 shares of common stock at an average
price of $11.82 for an aggregate dollar amount of $42.1 million in
the full year ended December 31, 2016
* See "Reconciliation of Non-GAAP Financial
Measures"
“I am extremely pleased with how we ended 2016,”
said TRI Pointe Group CEO Doug Bauer. “Fourth quarter net
orders grew 21% as compared to the prior year period, thanks to a
10% increase in the monthly absorption rate and a 9% rise in
average community count. Order trends remained strong in our
core California markets during the quarter, while many of our
markets outside of California experienced an increase in absorption
rate. We believe that this is a testament to the relative
strength of our markets and the quality of our communities and new
home offerings. With a 19% increase in active selling
communities at the start of 2017 as compared to the beginning of
2016, TRI Pointe Group is in a great position to achieve its goals
for 2017 and beyond.”
Fourth Quarter 2016 Operating
Results
Net income available to common stockholders was
$57.9 million, or $0.36 per diluted share in the fourth quarter of
2016, compared to net income available to common stockholders of
$85.1 million, or $0.52 per diluted share for the fourth quarter of
2015. The decrease in net income available to common
stockholders was primarily driven by lower home sales revenue and a
$33.9 million decrease in homebuilding gross margin, resulting in a
220 basis point decrease in homebuilding gross margin
percentage.
Home sales revenue decreased $76.7 million, or 9%,
to $770.7 million for the fourth quarter of 2016, as compared to
$847.4 million for the fourth quarter of 2015. The
decrease was primarily attributable to a 2% decrease in new home
deliveries to 1,427, and a 7% decrease in average selling price of
homes delivered to $540,000 compared to $583,000 in the fourth
quarter of 2015.
New home orders increased 21% to 909 homes for the
fourth quarter of 2016, as compared to 753 homes for the same
period in 2015. Average selling communities was 122.8
for the fourth quarter of 2016 compared to 112.8 for the fourth
quarter of 2015. The Company’s overall absorption rate per
average selling community for the fourth quarter of 2016 was 7.4
orders (2.5 monthly) compared to 6.7 orders (2.2 monthly) during
the fourth quarter of 2015.
The Company ended the quarter with 1,193 homes in
backlog, representing approximately $661.1 million. The average
selling price of homes in backlog as of December 31, 2016
decreased $49,000, or 8%, to $554,000 compared to $603,000 at
December 31, 2015.
Homebuilding gross margin percentage for the fourth
quarter of 2016 decreased to 20.0% compared to 22.2% for the fourth
quarter of 2015. Excluding interest and impairments and
lot option abandonments in cost of home sales, adjusted
homebuilding gross margin percentage was 22.2%* for the fourth
quarter of 2016 compared to 24.2%* for the fourth quarter of
2015. The decrease in homebuilding gross margin
percentage was largely due to the mix of homes delivered during the
quarter, with 58 fewer homes delivered from California which have
gross margins above the Company average.
Selling, general and administrative ("SG&A")
expense for the fourth quarter of 2016 increased to 9.2% of home
sales revenue as compared to 8.4% for the fourth quarter of 2015
due to decreased leverage as a result of the 9% decrease in home
sales revenue.
“TRI Pointe Group continues to strive for
operational excellence in our current business while investing in
the future, most notably with the continued development of our
longer-dated California assets,” said TRI Pointe Group COO Tom
Mitchell. “These assets will provide us with a great runway
of lots in land constrained California for years to come and will
be a key contributor to our success moving forward. We are
extremely optimistic about the potential of these assets, as well
as the prospects for all of our brands as we head into 2017.”
* See “Reconciliation of Non-GAAP Financial
Measures”
Outlook
For the full year 2017, the Company is reiterating
its guidance from their investor day this past November. The
Company expects to grow average selling communities by 10% compared
to the prior year and deliver between 4,500 and 4,800 homes at an
average sales price of $570,000. The Company expects its
homebuilding gross margin for the full year 2017 to be in the range
of 20% to 21%, with quarterly fluctuations based on the mix of
California deliveries, and expects its SG&A expense ratio to be
in the range of 10.2% to 10.4% of home sales revenue. In
addition, the Company anticipates gross profit from land and lot
sales of approximately $45 million, most of which is expected to
close in the third quarter of 2017.
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, February 22,
2017. 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 fifteen minutes prior to the call to download
and install any necessary audio software. The call can
also be accessed by dialing 1-877-407-3982 for domestic
participants or 1-201-493-6780 for international
participants. Participants should ask for the TRI Pointe
Group Fourth Quarter 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 1-844-512-2921, the international dial-in number
is 1-412-317-6671, and the reference code is
#13653357. 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, including
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. “Winchester” is a registered
trademark and is used with permission.
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,” “guidance,”
“expect,” “intend,” “outlook,” “project,” “potential,” “plan,”
“predict,” “target,” “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
re-occurrence of drought conditions 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 and disputes; 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.
Investor
Relations Contact: |
Media
Contact: |
|
|
Chris Martin, TRI
Pointe Group |
Carol Ruiz,
cruiz@newgroundco.com, 310-437-0045 |
Drew Mackintosh,
Mackintosh Investor Relations |
|
InvestorRelations@TRIPointeGroup.com, 949-478-8696 |
|
KEY OPERATIONS AND FINANCIAL
DATA(dollars in thousands)(unaudited) |
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2016 |
|
2015 |
|
Change |
|
2016 |
|
2015 |
|
Change |
Operating Data: |
|
|
|
|
|
|
|
|
|
|
|
Home
sales revenue |
$ |
770,703 |
|
|
$ |
847,409 |
|
|
$ |
(76,706 |
) |
|
$ |
2,329,336 |
|
|
$ |
2,291,264 |
|
|
$ |
38,072 |
|
Homebuilding gross margin |
$ |
153,936 |
|
|
$ |
187,824 |
|
|
$ |
(33,888 |
) |
|
$ |
493,009 |
|
|
$ |
482,488 |
|
|
$ |
10,521 |
|
Homebuilding gross margin % |
20.0 |
% |
|
22.2 |
% |
|
(2.2 |
)% |
|
21.2 |
% |
|
21.1 |
% |
|
0.1 |
% |
Adjusted
homebuilding gross margin %* |
22.2 |
% |
|
24.2 |
% |
|
(2.0 |
)% |
|
23.4 |
% |
|
23.1 |
% |
|
0.3 |
% |
Land and
lot sales revenue |
$ |
2,068 |
|
|
$ |
26,918 |
|
|
$ |
(24,850 |
) |
|
$ |
72,272 |
|
|
$ |
101,284 |
|
|
$ |
(29,012 |
) |
Land and
lot gross margin |
$ |
1,674 |
|
|
$ |
9,153 |
|
|
$ |
(7,479 |
) |
|
$ |
54,905 |
|
|
$ |
66,195 |
|
|
$ |
(11,290 |
) |
Land and
lot gross margin % |
80.9 |
% |
|
34.0 |
% |
|
46.9 |
% |
|
76.0 |
% |
|
65.4 |
% |
|
10.6 |
% |
SG&A
expense |
$ |
70,937 |
|
|
$ |
71,605 |
|
|
$ |
(668 |
) |
|
$ |
251,373 |
|
|
$ |
233,713 |
|
|
$ |
17,660 |
|
SG&A expense as a %
of home sales revenue |
9.2 |
% |
|
8.4 |
% |
|
0.8 |
% |
|
10.8 |
% |
|
10.2 |
% |
|
0.6 |
% |
Net income available to
common stockholders |
$ |
57,861 |
|
|
$ |
85,072 |
|
|
$ |
(27,211 |
) |
|
$ |
195,171 |
|
|
$ |
205,461 |
|
|
$ |
(10,290 |
) |
Adjusted
EBITDA* |
$ |
107,425 |
|
|
$ |
155,196 |
|
|
$ |
(47,771 |
) |
|
$ |
370,371 |
|
|
$ |
388,121 |
|
|
$ |
(17,750 |
) |
Interest
incurred |
$ |
18,276 |
|
|
$ |
15,185 |
|
|
$ |
3,091 |
|
|
$ |
68,306 |
|
|
$ |
60,964 |
|
|
$ |
7,342 |
|
Interest
in cost of home sales |
$ |
16,458 |
|
|
$ |
16,759 |
|
|
$ |
(301 |
) |
|
$ |
51,111 |
|
|
$ |
44,299 |
|
|
$ |
6,812 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data: |
|
|
|
|
|
|
|
|
|
|
|
Net new
home orders |
909 |
|
|
753 |
|
|
156 |
|
|
4,248 |
|
|
4,181 |
|
|
67 |
|
New homes
delivered |
1,427 |
|
|
1,453 |
|
|
(26 |
) |
|
4,211 |
|
|
4,057 |
|
|
154 |
|
Average
selling price of homes delivered |
$ |
540 |
|
|
$ |
583 |
|
|
$ |
(43 |
) |
|
$ |
553 |
|
|
$ |
565 |
|
|
$ |
(12 |
) |
Average
selling communities |
122.8 |
|
|
112.8 |
|
|
10.0 |
|
|
118.3 |
|
|
115.9 |
|
|
2.4 |
|
Selling
communities at end of period |
124 |
|
|
104 |
|
|
20 |
|
|
N/A |
|
N/A |
|
N/A |
Cancellation rate |
20 |
% |
|
21 |
% |
|
(1 |
)% |
|
15 |
% |
|
16 |
% |
|
(1 |
)% |
Backlog
(estimated dollar value) |
$ |
661,146 |
|
|
$ |
697,334 |
|
|
$ |
(36,188 |
) |
|
|
|
|
|
|
Backlog
(homes) |
1,193 |
|
|
1,156 |
|
|
37 |
|
|
|
|
|
|
|
Average
selling price in backlog |
$ |
554 |
|
|
$ |
603 |
|
|
$ |
(49 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
December 31, 2015 |
|
Change |
|
|
|
|
|
|
Balance Sheet
Data: |
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
208,657 |
|
|
$ |
214,485 |
|
|
$ |
(5,828 |
) |
|
|
|
|
|
|
Real
estate inventories |
$ |
2,910,627 |
|
|
$ |
2,519,273 |
|
|
$ |
391,354 |
|
|
|
|
|
|
|
Lots
owned or controlled |
28,309 |
|
|
27,602 |
|
|
707 |
|
|
|
|
|
|
|
Homes
under construction (1) |
1,605 |
|
|
1,531 |
|
|
74 |
|
|
|
|
|
|
|
Homes
completed, unsold |
405 |
|
|
351 |
|
|
54 |
|
|
|
|
|
|
|
Debt |
$ |
1,382,033 |
|
|
$ |
1,170,505 |
|
|
$ |
211,528 |
|
|
|
|
|
|
|
Stockholders' equity |
$ |
1,829,447 |
|
|
$ |
1,664,683 |
|
|
$ |
164,764 |
|
|
|
|
|
|
|
Book
capitalization |
$ |
3,211,480 |
|
|
$ |
2,835,188 |
|
|
$ |
376,292 |
|
|
|
|
|
|
|
Ratio of
debt-to-capital |
43.0 |
% |
|
41.3 |
% |
|
1.7 |
% |
|
|
|
|
|
|
Ratio of
net debt-to-capital* |
39.1 |
% |
|
36.5 |
% |
|
2.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Homes under construction included 65 and 69 models at
December 31, 2016 and December 31, 2015,
respectively. |
* See “Reconciliation of Non-GAAP Financial
Measures” |
CONSOLIDATED BALANCE SHEETS(in
thousands, except share amounts) |
|
|
December 31, 2016 |
|
December 31, 2015 |
Assets |
(unaudited) |
|
|
Cash and
cash equivalents |
$ |
208,657 |
|
|
$ |
214,485 |
|
Receivables |
82,500 |
|
|
43,710 |
|
Real
estate inventories |
2,910,627 |
|
|
2,519,273 |
|
Investments in unconsolidated entities |
17,546 |
|
|
18,999 |
|
Goodwill
and other intangible assets, net |
161,495 |
|
|
162,029 |
|
Deferred
tax assets, net |
123,223 |
|
|
130,657 |
|
Other
assets |
60,592 |
|
|
48,918 |
|
Total
assets |
$ |
3,564,640 |
|
|
$ |
3,138,071 |
|
|
|
|
|
Liabilities |
|
|
|
Accounts
payable |
$ |
70,252 |
|
|
$ |
64,840 |
|
Accrued
expenses and other liabilities |
263,845 |
|
|
216,263 |
|
Unsecured
revolving credit facility |
200,000 |
|
|
299,392 |
|
Seller
financed loans |
13,726 |
|
|
2,434 |
|
Senior
notes |
1,168,307 |
|
|
868,679 |
|
Total
liabilities |
1,716,130 |
|
|
1,451,608 |
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
Equity |
|
|
|
Stockholders' Equity: |
|
|
|
Preferred
stock, $0.01 par value, 50,000,000 shares authorized; shares issued
and outstanding as of December 31, 2016 and December 31, 2015,
respectively |
— |
|
|
— |
|
Common
stock, $0.01 par value, 500,000,000 shares authorized; 158,626,229
and 161,813,750 shares issued and outstanding at December 31, 2016
and December 31, 2015, respectively |
1,586 |
|
|
1,618 |
|
Additional paid-in capital |
880,822 |
|
|
911,197 |
|
Retained
earnings |
947,039 |
|
|
751,868 |
|
Total
stockholders' equity |
1,829,447 |
|
|
1,664,683 |
|
Noncontrolling interests |
19,063 |
|
|
21,780 |
|
Total
equity |
1,848,510 |
|
|
1,686,463 |
|
Total
liabilities and equity |
$ |
3,564,640 |
|
|
$ |
3,138,071 |
|
CONSOLIDATED STATEMENT OF
OPERATIONS(in thousands, except share and per share
amounts)(unaudited) |
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Homebuilding: |
|
|
|
|
|
|
|
Home
sales revenue |
$ |
770,703 |
|
|
$ |
847,409 |
|
|
$ |
2,329,336 |
|
|
$ |
2,291,264 |
|
Land and
lot sales revenue |
2,068 |
|
|
26,918 |
|
|
72,272 |
|
|
101,284 |
|
Other
operations revenue |
524 |
|
|
5,388 |
|
|
2,314 |
|
|
7,601 |
|
Total
revenues |
773,295 |
|
|
879,715 |
|
|
2,403,922 |
|
|
2,400,149 |
|
Cost of
home sales |
616,767 |
|
|
659,585 |
|
|
1,836,327 |
|
|
1,808,776 |
|
Cost of
land and lot sales |
394 |
|
|
17,765 |
|
|
17,367 |
|
|
35,089 |
|
Other
operations expense |
523 |
|
|
2,656 |
|
|
2,247 |
|
|
4,360 |
|
Sales and
marketing |
37,282 |
|
|
37,259 |
|
|
127,903 |
|
|
116,217 |
|
General
and administrative |
33,655 |
|
|
34,346 |
|
|
123,470 |
|
|
117,496 |
|
Restructuring charges |
171 |
|
|
599 |
|
|
649 |
|
|
3,329 |
|
Homebuilding income from operations |
84,503 |
|
|
127,505 |
|
|
295,959 |
|
|
314,882 |
|
Equity in
(loss) income of unconsolidated entities |
(2 |
) |
|
1,542 |
|
|
179 |
|
|
1,460 |
|
Other
income, net |
25 |
|
|
586 |
|
|
312 |
|
|
858 |
|
Homebuilding income before income taxes |
84,526 |
|
|
129,633 |
|
|
296,450 |
|
|
317,200 |
|
Financial
Services: |
|
|
|
|
|
|
|
Revenues |
458 |
|
|
528 |
|
|
1,220 |
|
|
1,010 |
|
Expenses |
70 |
|
|
50 |
|
|
253 |
|
|
181 |
|
Equity in
income of unconsolidated entities |
1,564 |
|
|
1,233 |
|
|
4,810 |
|
|
1,231 |
|
Financial
services income before income taxes |
1,952 |
|
|
1,711 |
|
|
5,777 |
|
|
2,060 |
|
Income before
income taxes |
86,478 |
|
|
131,344 |
|
|
302,227 |
|
|
319,260 |
|
Provision for income
taxes |
(28,393 |
) |
|
(45,991 |
) |
|
(106,094 |
) |
|
(112,079 |
) |
Net income |
58,085 |
|
|
85,353 |
|
|
196,133 |
|
|
207,181 |
|
Net income attributable
to noncontrolling interests |
(224 |
) |
|
(281 |
) |
|
(962 |
) |
|
(1,720 |
) |
Net income available to
common stockholders |
$ |
57,861 |
|
|
$ |
85,072 |
|
|
$ |
195,171 |
|
|
$ |
205,461 |
|
Earnings per share |
|
|
|
|
|
|
|
Basic |
$ |
0.36 |
|
|
$ |
0.53 |
|
|
$ |
1.21 |
|
|
$ |
1.27 |
|
Diluted |
$ |
0.36 |
|
|
$ |
0.52 |
|
|
$ |
1.21 |
|
|
$ |
1.27 |
|
Weighted average shares
outstanding |
|
|
|
|
|
|
|
Basic |
159,082,568 |
|
|
161,813,750 |
|
|
160,859,782 |
|
|
161,692,152 |
|
Diluted |
159,789,940 |
|
|
162,379,826 |
|
|
161,381,499 |
|
|
162,319,758 |
|
MARKET DATA BY REPORTING SEGMENT &
STATE(dollars in thousands)(unaudited) |
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
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 |
225 |
|
|
$ |
417 |
|
|
173 |
|
|
$ |
399 |
|
|
625 |
|
|
$ |
408 |
|
|
480 |
|
|
$ |
387 |
|
Pardee
Homes |
392 |
|
|
467 |
|
|
406 |
|
|
591 |
|
|
1,220 |
|
|
548 |
|
|
1,130 |
|
|
536 |
|
Quadrant Homes |
96 |
|
|
616 |
|
|
114 |
|
|
475 |
|
|
383 |
|
|
541 |
|
|
411 |
|
|
440 |
|
Trendmaker Homes |
139 |
|
|
506 |
|
|
145 |
|
|
511 |
|
|
474 |
|
|
506 |
|
|
539 |
|
|
511 |
|
TRI Pointe Homes |
411 |
|
|
658 |
|
|
449 |
|
|
696 |
|
|
1,089 |
|
|
664 |
|
|
1,060 |
|
|
730 |
|
Winchester Homes |
164 |
|
|
570 |
|
|
166 |
|
|
590 |
|
|
420 |
|
|
560 |
|
|
437 |
|
|
616 |
|
Total |
1,427 |
|
|
$ |
540 |
|
|
1,453 |
|
|
$ |
583 |
|
|
4,211 |
|
|
$ |
553 |
|
|
4,057 |
|
|
$ |
565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
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 |
596 |
|
|
$ |
601 |
|
|
654 |
|
|
$ |
717 |
|
|
1,689 |
|
|
$ |
669 |
|
|
1,623 |
|
|
$ |
707 |
|
Colorado |
42 |
|
|
579 |
|
|
65 |
|
|
512 |
|
|
160 |
|
|
524 |
|
|
193 |
|
|
496 |
|
Maryland |
96 |
|
|
544 |
|
|
89 |
|
|
467 |
|
|
265 |
|
|
518 |
|
|
209 |
|
|
502 |
|
Virginia |
68 |
|
|
608 |
|
|
77 |
|
|
732 |
|
|
155 |
|
|
631 |
|
|
228 |
|
|
720 |
|
Arizona |
225 |
|
|
417 |
|
|
173 |
|
|
399 |
|
|
625 |
|
|
408 |
|
|
480 |
|
|
387 |
|
Nevada |
165 |
|
|
433 |
|
|
136 |
|
|
368 |
|
|
460 |
|
|
386 |
|
|
374 |
|
|
368 |
|
Texas |
139 |
|
|
506 |
|
|
145 |
|
|
511 |
|
|
474 |
|
|
506 |
|
|
539 |
|
|
511 |
|
Washington |
96 |
|
|
616 |
|
|
114 |
|
|
475 |
|
|
383 |
|
|
541 |
|
|
411 |
|
|
440 |
|
Total |
1,427 |
|
|
$ |
540 |
|
|
1,453 |
|
|
$ |
583 |
|
|
4,211 |
|
|
$ |
553 |
|
|
4,057 |
|
|
$ |
565 |
|
MARKET DATA BY REPORTING SEGMENT & STATE,
continued(unaudited) |
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
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 |
144 |
|
|
18.0 |
|
|
83 |
|
|
15.0 |
|
|
670 |
|
|
18.0 |
|
|
578 |
|
|
16.6 |
|
Pardee
Homes |
270 |
|
|
26.0 |
|
|
232 |
|
|
24.0 |
|
|
1,206 |
|
|
23.6 |
|
|
1,186 |
|
|
23.1 |
|
Quadrant Homes |
67 |
|
|
6.5 |
|
|
88 |
|
|
10.5 |
|
|
341 |
|
|
8.0 |
|
|
441 |
|
|
10.7 |
|
Trendmaker Homes |
116 |
|
|
30.8 |
|
|
76 |
|
|
22.3 |
|
|
501 |
|
|
27.8 |
|
|
457 |
|
|
25.1 |
|
TRI Pointe Homes |
214 |
|
|
28.5 |
|
|
172 |
|
|
27.5 |
|
|
1,097 |
|
|
27.6 |
|
|
1,107 |
|
|
26.9 |
|
Winchester Homes |
98 |
|
|
13.0 |
|
|
102 |
|
|
13.5 |
|
|
433 |
|
|
13.3 |
|
|
412 |
|
|
13.5 |
|
Total |
909 |
|
|
122.8 |
|
|
753 |
|
|
112.8 |
|
|
4,248 |
|
|
118.3 |
|
|
4,181 |
|
|
115.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
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 |
357 |
|
|
38.8 |
|
|
285 |
|
|
34.9 |
|
|
1,690 |
|
|
35.4 |
|
|
1,706 |
|
|
33.5 |
|
Colorado |
28 |
|
|
4.5 |
|
|
25 |
|
|
5.8 |
|
|
135 |
|
|
4.8 |
|
|
193 |
|
|
6.2 |
|
Maryland |
76 |
|
|
8.0 |
|
|
68 |
|
|
6.5 |
|
|
290 |
|
|
7.0 |
|
|
233 |
|
|
6.0 |
|
Virginia |
22 |
|
|
5.0 |
|
|
34 |
|
|
7.0 |
|
|
143 |
|
|
6.3 |
|
|
179 |
|
|
7.5 |
|
Arizona |
144 |
|
|
18.0 |
|
|
83 |
|
|
15.0 |
|
|
670 |
|
|
18.0 |
|
|
578 |
|
|
16.6 |
|
Nevada |
99 |
|
|
11.2 |
|
|
94 |
|
|
10.8 |
|
|
478 |
|
|
11.0 |
|
|
394 |
|
|
10.3 |
|
Texas |
116 |
|
|
30.8 |
|
|
76 |
|
|
22.3 |
|
|
501 |
|
|
27.8 |
|
|
457 |
|
|
25.1 |
|
Washington |
67 |
|
|
6.5 |
|
|
88 |
|
|
10.5 |
|
|
341 |
|
|
8.0 |
|
|
441 |
|
|
10.7 |
|
Total |
909 |
|
|
122.8 |
|
|
753 |
|
|
112.8 |
|
|
4,248 |
|
|
118.3 |
|
|
4,181 |
|
|
115.9 |
|
MARKET DATA BY REPORTING SEGMENT & STATE,
continued(dollars in thousands)(unaudited) |
|
|
|
|
|
As of December 31, 2016 |
|
As of December 31, 2015 |
|
Backlog Units |
|
Backlog Dollar Value |
|
Average Sales Price |
|
Backlog Units |
|
Backlog Dollar Value |
|
Average Sales Price |
Backlog: |
|
|
|
|
|
|
|
|
|
|
|
Maracay
Homes |
248 |
|
|
$ |
114,203 |
|
|
$ |
460 |
|
|
203 |
|
|
$ |
82,171 |
|
|
$ |
405 |
|
Pardee
Homes |
260 |
|
|
134,128 |
|
|
516 |
|
|
274 |
|
|
200,588 |
|
|
732 |
|
Quadrant
Homes |
101 |
|
|
68,461 |
|
|
678 |
|
|
143 |
|
|
72,249 |
|
|
505 |
|
Trendmaker Homes |
163 |
|
|
85,579 |
|
|
525 |
|
|
136 |
|
|
72,604 |
|
|
534 |
|
TRI
Pointe Homes |
298 |
|
|
180,012 |
|
|
604 |
|
|
290 |
|
|
192,097 |
|
|
662 |
|
Winchester Homes |
123 |
|
|
78,763 |
|
|
640 |
|
|
110 |
|
|
77,625 |
|
|
706 |
|
Total |
1,193 |
|
|
$ |
661,146 |
|
|
$ |
554 |
|
|
1,156 |
|
|
$ |
697,334 |
|
|
$ |
603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2016 |
|
As of December 31, 2015 |
|
Backlog Units |
|
Backlog Dollar Value |
|
Average Sales Price |
|
Backlog Units |
|
Backlog Dollar Value |
|
Average Sales Price |
Backlog: |
|
|
|
|
|
|
|
|
|
|
|
California |
402 |
|
|
$ |
237,748 |
|
|
$ |
591 |
|
|
401 |
|
|
$ |
321,753 |
|
|
$ |
802 |
|
Colorado |
59 |
|
|
35,764 |
|
|
606 |
|
|
84 |
|
|
41,026 |
|
|
488 |
|
Maryland |
102 |
|
|
60,904 |
|
|
597 |
|
|
77 |
|
|
49,760 |
|
|
646 |
|
Virginia |
21 |
|
|
17,859 |
|
|
850 |
|
|
33 |
|
|
27,865 |
|
|
844 |
|
Arizona |
248 |
|
|
114,203 |
|
|
460 |
|
|
203 |
|
|
82,171 |
|
|
405 |
|
Nevada |
97 |
|
|
40,628 |
|
|
419 |
|
|
79 |
|
|
29,906 |
|
|
379 |
|
Texas |
163 |
|
|
85,579 |
|
|
525 |
|
|
136 |
|
|
72,604 |
|
|
534 |
|
Washington |
101 |
|
|
68,461 |
|
|
678 |
|
|
143 |
|
|
72,249 |
|
|
505 |
|
Total |
1,193 |
|
|
$ |
661,146 |
|
|
$ |
554 |
|
|
1,156 |
|
|
$ |
697,334 |
|
|
$ |
603 |
|
MARKET DATA BY REPORTING SEGMENT & STATE,
continued(unaudited) |
|
|
|
|
|
December 31, 2016 |
|
December 31, 2015 |
Lots Owned or
Controlled(1): |
|
|
|
Maracay
Homes |
2,053 |
|
|
1,811 |
|
Pardee
Homes |
16,912 |
|
|
16,679 |
|
Quadrant
Homes |
1,582 |
|
|
1,274 |
|
Trendmaker Homes |
1,999 |
|
|
1,858 |
|
TRI
Pointe Homes |
3,479 |
|
|
3,628 |
|
Winchester Homes |
2,284 |
|
|
2,352 |
|
Total |
28,309 |
|
|
27,602 |
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
December 31, 2015 |
Lots Owned or
Controlled(1): |
|
|
|
California |
17,245 |
|
|
17,527 |
|
Colorado |
918 |
|
|
876 |
|
Maryland |
1,779 |
|
|
1,716 |
|
Virginia |
505 |
|
|
636 |
|
Arizona |
2,053 |
|
|
1,811 |
|
Nevada |
2,228 |
|
|
1,904 |
|
Texas |
1,999 |
|
|
1,858 |
|
Washington |
1,582 |
|
|
1,274 |
|
Total |
28,309 |
|
|
27,602 |
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
December 31, 2015 |
Lots by
Ownership Type: |
|
|
|
Lots
owned |
25,283 |
|
|
24,733 |
|
Lots
controlled (1) |
3,026 |
|
|
2,869 |
|
Total |
28,309 |
|
|
27,602 |
|
|
(1) As of December 31, 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 tables reconcile homebuilding gross
margin percentage, as reported and prepared in accordance with
GAAP, to the non-GAAP measure adjusted homebuilding gross margin
percentage. We believe this information is meaningful as it
isolates the impact that leverage has on homebuilding gross margin
and permits investors to make better comparisons with our
competitors, who adjust gross margins in a similar fashion.
|
Three Months Ended December 31, |
|
2016 |
|
% |
|
2015 |
|
% |
|
(dollars in thousands) |
Home sales revenue |
$ |
770,703 |
|
|
100.0 |
% |
|
$ |
847,409 |
|
|
100.0 |
% |
Cost of home sales |
616,767 |
|
|
80.0 |
% |
|
659,585 |
|
|
77.8 |
% |
Homebuilding gross
margin |
153,936 |
|
|
20.0 |
% |
|
187,824 |
|
|
22.2 |
% |
Add: interest in cost of home sales |
16,458 |
|
|
2.1 |
% |
|
16,759 |
|
|
2.0 |
% |
Add: impairments and lot option abandonments |
792 |
|
|
0.1 |
% |
|
92 |
|
|
0.0 |
% |
Adjusted homebuilding
gross margin |
$ |
171,186 |
|
|
22.2 |
% |
|
$ |
204,675 |
|
|
24.2 |
% |
Homebuilding gross
margin percentage |
20.0 |
% |
|
|
|
22.2 |
% |
|
|
Adjusted homebuilding
gross margin percentage |
22.2 |
% |
|
|
|
24.2 |
% |
|
|
|
Year Ended December 31, |
|
2016 |
|
% |
|
2015 |
|
% |
|
(dollars in thousands) |
Home sales revenue |
$ |
2,329,336 |
|
|
100.0 |
% |
|
$ |
2,291,264 |
|
|
100.0 |
% |
Cost of home sales |
1,836,327 |
|
|
78.8 |
% |
|
1,808,776 |
|
|
78.9 |
% |
Homebuilding gross
margin |
493,009 |
|
|
21.2 |
% |
|
482,488 |
|
|
21.1 |
% |
Add: interest in cost of home sales |
51,111 |
|
|
2.2 |
% |
|
44,299 |
|
|
1.9 |
% |
Add: impairments and lot option abandonments |
1,470 |
|
|
0.1 |
% |
|
1,685 |
|
|
0.1 |
% |
Adjusted homebuilding
gross margin |
$ |
545,590 |
|
|
23.4 |
% |
|
$ |
528,472 |
|
|
23.1 |
% |
Homebuilding gross
margin percentage |
21.2 |
% |
|
|
|
21.1 |
% |
|
|
Adjusted homebuilding
gross margin percentage |
23.4 |
% |
|
|
|
23.1 |
% |
|
|
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.
|
December 31, 2016 |
|
December 31, 2015 |
Unsecured revolving
credit facility |
$ |
200,000 |
|
|
$ |
299,392 |
|
Seller financed
loans |
13,726 |
|
|
2,434 |
|
Senior notes |
1,168,307 |
|
|
868,679 |
|
Total
debt |
1,382,033 |
|
|
1,170,505 |
|
Stockholders’
equity |
1,829,447 |
|
|
1,664,683 |
|
Total
capital |
$ |
3,211,480 |
|
|
$ |
2,835,188 |
|
Ratio of
debt-to-capital(1) |
43.0 |
% |
|
41.3 |
% |
|
|
|
|
Total debt |
$ |
1,382,033 |
|
|
$ |
1,170,505 |
|
Less: Cash and cash
equivalents |
(208,657 |
) |
|
(214,485 |
) |
Net
debt |
1,173,376 |
|
|
956,020 |
|
Stockholders’
equity |
1,829,447 |
|
|
1,664,683 |
|
Total
capital |
$ |
3,002,823 |
|
|
$ |
2,620,703 |
|
Ratio of net
debt-to-capital(2) |
39.1 |
% |
|
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. |
|
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 December 31, |
|
Year Ended December 31, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
(in thousands) |
Net income available to
common stockholders |
$ |
57,861 |
|
|
$ |
85,072 |
|
|
$ |
195,171 |
|
|
$ |
205,461 |
|
Interest
expense: |
|
|
|
|
|
|
|
Interest
incurred |
18,276 |
|
|
15,185 |
|
|
68,306 |
|
|
60,964 |
|
Interest
capitalized |
(18,276 |
) |
|
(15,185 |
) |
|
(68,306 |
) |
|
(60,964 |
) |
Amortization of interest in cost of sales |
16,480 |
|
|
17,095 |
|
|
51,288 |
|
|
45,114 |
|
Provision
for income taxes |
28,393 |
|
|
45,991 |
|
|
106,094 |
|
|
112,079 |
|
Depreciation and amortization |
764 |
|
|
2,859 |
|
|
3,087 |
|
|
8,273 |
|
Amortization of stock-based compensation |
2,964 |
|
|
3,399 |
|
|
12,612 |
|
|
11,935 |
|
EBITDA |
106,462 |
|
|
154,416 |
|
|
368,252 |
|
|
382,862 |
|
Impairments and lot abandonments |
792 |
|
|
181 |
|
|
1,470 |
|
|
1,930 |
|
Restructuring charges |
171 |
|
|
599 |
|
|
649 |
|
|
3,329 |
|
Adjusted EBITDA |
$ |
107,425 |
|
|
$ |
155,196 |
|
|
$ |
370,371 |
|
|
$ |
388,121 |
|
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