-New Home Orders up 13% Year-Over-Year on
a 10% Increase in Average Selling
Communities- -Reports Net Income Available to
Common Stockholders of $8.2 Million, or $0.05 per Diluted
Share- -Home Sales Revenue of $392.0 Million
and Homebuilding Gross Margin Percentage of 18.8%-
TRI Pointe Group, Inc. (the "Company") (NYSE:TPH) today announced
results for the first quarter ended March 31, 2017.
Results and Operational Data for First
Quarter 2017 and Comparisons to First Quarter 2016
- Net income available to common stockholders was $8.2 million,
or $0.05 per diluted share, compared to $28.6 million, or $0.18 per
diluted share
- New home orders of 1,299 compared to 1,149, an increase of
13%
- Active selling communities averaged 125.5 compared to 114.5, an
increase of 10%
- New home orders per average selling community were 10.4 orders
(3.5 monthly) compared to 10.0 orders (3.3 monthly)
- Cancellation rate of 14% compared to 13%, an increase of 100
basis points
- Backlog units at quarter end of 1,734 homes compared to 1,534,
an increase of 13%
- Dollar value of backlog at quarter end of $1.0 billion compared
to $891.5 million, an increase of 14%
- Average sales price in backlog at quarter end of $585,000
compared to $581,000, an increase of 1%
- Home sales revenue of $392.0 million compared to $423.1
million, a decrease of 7%
- New home deliveries of 758 homes compared to 771 homes, a
decrease of 2%
- Average sales price of homes delivered of $517,000 compared to
$549,000, a decrease of 6%
- Homebuilding gross margin percentage of 18.8% compared to
23.3%, a decrease of 450 basis points
- Excluding interest, impairments and lot option abandonments,
adjusted homebuilding gross margin percentage was 21.3%*
- SG&A expense as a percentage of homes sales revenue of
15.7% compared to 13.0%, an increase of 270 basis points
- Ratios of debt-to-capital and net debt-to-capital of 43.6% and
41.3%*, respectively, as of March 31, 2017
- Repurchased 39,387 shares of common stock at an average price
of $12.49 for an aggregate dollar amount of $492,118 in the three
months ended March 31, 2017. Subsequent to March 31,
2017 and through April 25, 2017, the Company repurchased an
additional 1,166,557 shares of common stock at an average price of
$12.35 per share for a total cost of $14.4 million
- Ended first quarter of 2017 with cash of $128.5 million and
$370.5 million of availability under the Company's unsecured
revolving credit facility
* See "Reconciliation of Non-GAAP Financial Measures"
“I am pleased to announce that 2017 is off to a strong start,”
said TRI Pointe Group Chief Executive Officer Doug Bauer.
“Orders grew 13% in the first quarter on a year-over-year basis
thanks to a 10% increase in average selling community count and a
strong absorption rate of 3.5 orders per community per month.
Deliveries and homebuilding gross margins came in ahead of our
projections due to solid execution by our teams in the field.
These results, combined with the continued progress we made in
bringing our long dated California land assets to market, put us in
an excellent position to achieve our goals for this year and
beyond.”
First Quarter 2017 Operating
Results
Net income available to common stockholders was $8.2 million, or
$0.05 per diluted share in the first quarter of 2017, compared to
net income available to common stockholders of $28.6 million, or
$0.18 per diluted share for the first quarter of
2016. The decrease in net income available to common
stockholders was primarily driven by lower home sales revenue and a
$25.0 million decrease in homebuilding gross margin, resulting in a
450 basis point decrease in homebuilding gross margin
percentage.
Home sales revenue decreased $31.1 million, or 7%, to $392.0
million for the first quarter of 2017, as compared to $423.1
million for the first quarter of 2016. The decrease was
primarily attributable to a 2% decrease in new home deliveries to
758, and a 6% decrease in average selling price of homes delivered
to $517,000 compared to $549,000 in the first quarter of 2016.
New home orders increased 13% to 1,299 homes for the first
quarter of 2017, as compared to 1,149 homes for the same period in
2016. Average selling communities increased 10% to 125.5
for the first quarter of 2017 compared to 114.5 for the first
quarter of 2016. The Company’s overall absorption rate per
average selling community for the first quarter of 2017 was 10.4
orders (3.5 monthly) compared to 10.0 orders (3.3 monthly) during
the first quarter of 2016.
The Company ended the quarter with 1,734 homes in backlog,
representing approximately $1.0 billion. The average sales price of
homes in backlog as of March 31, 2017 increased $4,000, or 1%,
to $585,000 compared to $581,000 at March 31, 2016.
Homebuilding gross margin percentage for the first quarter of
2017 decreased to 18.8% compared to 23.3% for the first quarter of
2016. Excluding interest and impairments and lot option
abandonments in cost of home sales, adjusted homebuilding gross
margin percentage was 21.3%* for the first quarter of 2017 compared
to 25.4%* for the first quarter of 2016. The decrease in
homebuilding gross margin percentage was largely due to the mix of
homes delivered.
Selling, general and administrative ("SG&A") expense for the
first quarter of 2017 increased to 15.7% of home sales revenue as
compared to 13.0% for the first quarter of 2016 due to the
incremental general and administrative costs associated with
growing our Company and the decreased leverage as a result of the
7% decrease in home sales revenue.
“The fact that the majority of our brands achieved a sales pace
of at least three homes per community per month in the quarter is a
strong indication that the housing fundamentals in our markets are
strong and potentially supportive of future price increases,” said
TRI Pointe Group President and Chief Operating Officer Tom
Mitchell. “We are even more encouraged by the fact that the
communities we have opened in 2017 and 2016 are selling at a faster
pace than the communities we opened prior to 2016. These
trends are great indicators for both sales and pricing momentum
going forward.”
* See “Reconciliation of Non-GAAP Financial Measures”
Outlook
For the second quarter of 2017, the Company expects to open 18
new communities, and close out of 14, resulting in 127 active
selling communities as of June 30, 2017. In addition,
the Company anticipates delivering approximately 58% of its 1,734
units in backlog as of March 31, 2017 at an average sales price of
approximately $550,000. The Company anticipates its homebuilding
gross margin percentage to be in a range of 19.5% to 20.5% for the
second quarter.
For the full year 2017, the Company is reiterating its original
guidance of growing average selling communities by 10%, delivering
between 4,500 and 4,800 homes at an average sales price of
$570,000, a homebuilding gross margin percentage in a range of
20.0% to 21.0% and a SG&A expense ratio 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 be realized 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, April 26, 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 First Quarter 2017 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 #13658645. 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 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
customers’ 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:
Chris Martin, TRI Pointe GroupDrew Mackintosh,
Mackintosh Investor RelationsInvestorRelations@TRIPointeGroup.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 March 31, |
|
2017 |
|
2016 |
|
Change |
Operating Data: |
|
|
|
|
|
Home
sales revenue |
$ |
392,004 |
|
|
$ |
423,055 |
|
|
$ |
(31,051 |
) |
Homebuilding gross margin |
$ |
73,600 |
|
|
$ |
98,556 |
|
|
$ |
(24,956 |
) |
Homebuilding gross margin % |
18.8 |
% |
|
23.3 |
% |
|
(4.5 |
)% |
Adjusted
homebuilding gross margin %* |
21.3 |
% |
|
25.4 |
% |
|
(4.1 |
)% |
Land and
lot sales revenue |
$ |
578 |
|
|
$ |
355 |
|
|
$ |
223 |
|
Land and
lot gross margin |
$ |
(76 |
) |
|
$ |
(424 |
) |
|
$ |
348 |
|
Land and
lot gross margin % |
(13.1 |
)% |
|
(119.4 |
)% |
|
106.3 |
% |
SG&A
expense |
$ |
61,349 |
|
|
$ |
54,852 |
|
|
$ |
6,497 |
|
SG&A expense as a %
of home sales revenue |
15.7 |
% |
|
13.0 |
% |
|
2.7 |
% |
Net income available to
common stockholders |
$ |
8,193 |
|
|
$ |
28,550 |
|
|
$ |
(20,357 |
) |
Adjusted
EBITDA* |
$ |
27,681 |
|
|
$ |
57,584 |
|
|
$ |
(29,903 |
) |
Interest
incurred |
$ |
18,873 |
|
|
$ |
15,149 |
|
|
$ |
3,724 |
|
Interest
in cost of home sales |
$ |
9,680 |
|
|
$ |
8,830 |
|
|
$ |
850 |
|
|
|
|
|
|
|
Other Data: |
|
|
|
|
|
Net new
home orders |
1,299 |
|
|
1,149 |
|
|
150 |
|
New homes
delivered |
758 |
|
|
771 |
|
|
(13 |
) |
Average
selling price of homes delivered |
$ |
517 |
|
|
$ |
549 |
|
|
$ |
(32 |
) |
Average
selling communities |
125.5 |
|
|
114.5 |
|
|
11.0 |
|
Selling
communities at end of period |
123 |
|
|
125 |
|
|
(2 |
) |
Cancellation rate |
14 |
% |
|
13 |
% |
|
1 |
% |
Backlog
(estimated dollar value) |
$ |
1,014,163 |
|
|
$ |
891,532 |
|
|
$ |
122,631 |
|
Backlog
(homes) |
1,734 |
|
|
1,534 |
|
|
200 |
|
Average
selling price in backlog |
$ |
585 |
|
|
$ |
581 |
|
|
$ |
4 |
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
|
2017 |
|
2016 |
|
Change |
Balance Sheet
Data: |
|
|
|
|
|
Cash and
cash equivalents |
$ |
128,519 |
|
|
$ |
208,657 |
|
|
$ |
(80,138 |
) |
Real
estate inventories |
$ |
3,046,092 |
|
|
$ |
2,910,627 |
|
|
$ |
135,465 |
|
Lots
owned or controlled |
28,760 |
|
|
28,309 |
|
|
451 |
|
Homes
under construction (1) |
1,745 |
|
|
1,605 |
|
|
140 |
|
Homes
completed, unsold |
365 |
|
|
405 |
|
|
(40 |
) |
Debt |
$ |
1,419,914 |
|
|
$ |
1,382,033 |
|
|
$ |
37,881 |
|
Stockholders' equity |
$ |
1,839,174 |
|
|
$ |
1,829,447 |
|
|
$ |
9,727 |
|
Book
capitalization |
$ |
3,259,088 |
|
|
$ |
3,211,480 |
|
|
$ |
47,608 |
|
Ratio of
debt-to-capital |
43.6 |
% |
|
43.0 |
% |
|
0.6 |
% |
Ratio of
net debt-to-capital* |
41.3 |
% |
|
39.1 |
% |
|
2.2 |
% |
__________(1) Homes under construction included 69 and 65 models
at March 31, 2017 and December 31, 2016, respectively.*
See “Reconciliation of Non-GAAP Financial Measures”
|
CONSOLIDATED BALANCE SHEETS |
(in thousands, except share amounts) |
|
|
March 31, |
|
December 31, |
|
2017 |
|
2016 |
Assets |
(unaudited) |
|
|
Cash and
cash equivalents |
$ |
128,519 |
|
|
$ |
208,657 |
|
Receivables |
65,999 |
|
|
82,500 |
|
Real
estate inventories |
3,046,092 |
|
|
2,910,627 |
|
Investments in unconsolidated entities |
17,113 |
|
|
17,546 |
|
Goodwill
and other intangible assets, net |
161,361 |
|
|
161,495 |
|
Deferred
tax assets, net |
122,105 |
|
|
123,223 |
|
Other
assets |
58,527 |
|
|
60,592 |
|
Total
assets |
$ |
3,599,716 |
|
|
$ |
3,564,640 |
|
|
|
|
|
Liabilities |
|
|
|
Accounts
payable |
$ |
74,115 |
|
|
$ |
70,252 |
|
Accrued
expenses and other liabilities |
251,891 |
|
|
263,845 |
|
Unsecured
revolving credit facility |
250,000 |
|
|
200,000 |
|
Seller
financed loans |
— |
|
|
13,726 |
|
Senior
notes |
1,169,914 |
|
|
1,168,307 |
|
Total
liabilities |
1,745,920 |
|
|
1,716,130 |
|
|
|
|
|
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, 2017 and December 31, 2016,
respectively |
— |
|
|
— |
|
Common
stock, $0.01 par value, 500,000,000 shares authorized;
159,047,862 and 158,626,229 shares issued and outstanding at
March 31, 2017 and December 31, 2016, respectively
|
1,590 |
|
|
1,586 |
|
Additional paid-in capital |
882,352 |
|
|
880,822 |
|
Retained
earnings |
955,232 |
|
|
947,039 |
|
Total
stockholders' equity |
1,839,174 |
|
|
1,829,447 |
|
Noncontrolling interests |
14,622 |
|
|
19,063 |
|
Total
equity |
1,853,796 |
|
|
1,848,510 |
|
Total
liabilities and equity |
$ |
3,599,716 |
|
|
$ |
3,564,640 |
|
|
CONSOLIDATED STATEMENT OF
OPERATIONS |
(in thousands, except share and per share amounts) |
(unaudited) |
|
|
Three Months Ended March 31, |
|
2017 |
|
2016 |
Homebuilding: |
|
|
|
Home
sales revenue |
$ |
392,004 |
|
|
$ |
423,055 |
|
Land and
lot sales revenue |
578 |
|
|
355 |
|
Other
operations revenue |
568 |
|
|
580 |
|
Total
revenues |
393,150 |
|
|
423,990 |
|
Cost of
home sales |
318,404 |
|
|
324,499 |
|
Cost of
land and lot sales |
654 |
|
|
779 |
|
Other
operations expense |
560 |
|
|
566 |
|
Sales and
marketing |
26,700 |
|
|
26,321 |
|
General
and administrative |
34,649 |
|
|
28,531 |
|
Homebuilding income from operations |
12,183 |
|
|
43,294 |
|
Equity in
income (loss) of unconsolidated entities
|
138 |
|
|
(14 |
) |
Other
income, net |
77 |
|
|
115 |
|
Homebuilding income before income taxes |
12,398 |
|
|
43,395 |
|
Financial
Services: |
|
|
|
Revenues |
241 |
|
|
148 |
|
Expenses |
74 |
|
|
58 |
|
Equity in
income of unconsolidated entities |
266 |
|
|
715 |
|
Financial
services income before income taxes |
433 |
|
|
805 |
|
Income before
income taxes |
12,831 |
|
|
44,200 |
|
Provision for income
taxes |
(4,614 |
) |
|
(15,490 |
) |
Net income |
8,217 |
|
|
28,710 |
|
Net income attributable
to noncontrolling interests |
(24 |
) |
|
(160 |
) |
Net income available to
common stockholders |
$ |
8,193 |
|
|
$ |
28,550 |
|
Earnings per share |
|
|
|
Basic |
$ |
0.05 |
|
|
$ |
0.18 |
|
Diluted |
$ |
0.05 |
|
|
$ |
0.18 |
|
Weighted average shares
outstanding |
|
|
|
Basic |
158,769,478 |
|
|
161,895,640 |
|
Diluted |
159,390,586 |
|
|
162,192,610 |
|
|
MARKET DATA BY REPORTING SEGMENT &
STATE |
(dollars in thousands) |
(unaudited) |
|
|
Three Months Ended March 31, |
|
2017 |
|
2016 |
|
NewHomesDelivered |
|
AverageSalesPrice |
|
NewHomesDelivered |
|
AverageSalesPrice |
New Homes
Delivered:
|
|
|
|
|
|
|
|
Maracay
Homes |
119 |
|
|
$ |
429 |
|
|
115 |
|
|
$ |
395 |
|
Pardee
Homes |
196 |
|
|
427 |
|
|
208 |
|
|
572 |
|
Quadrant Homes |
63 |
|
|
633 |
|
|
92 |
|
|
494 |
|
Trendmaker Homes |
106 |
|
|
490 |
|
|
88 |
|
|
498 |
|
TRI Pointe Homes |
208 |
|
|
629 |
|
|
201 |
|
|
657 |
|
Winchester Homes |
66 |
|
|
524 |
|
|
67 |
|
|
559 |
|
Total |
758 |
|
|
$ |
517 |
|
|
771 |
|
|
$ |
549 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
2017 |
|
2016 |
|
NewHomesDelivered |
|
AverageSalesPrice |
|
NewHomesDelivered |
|
AverageSalesPrice |
New Homes
Delivered: |
|
|
|
|
|
|
|
California |
299 |
|
|
$ |
570 |
|
|
314 |
|
|
$ |
681 |
|
Colorado |
30 |
|
|
564 |
|
|
38 |
|
|
482 |
|
Maryland |
46 |
|
|
499 |
|
|
48 |
|
|
504 |
|
Virginia |
20 |
|
|
582 |
|
|
19 |
|
|
699 |
|
Arizona |
119 |
|
|
429 |
|
|
115 |
|
|
395 |
|
Nevada |
75 |
|
|
364 |
|
|
57 |
|
|
328 |
|
Texas |
106 |
|
|
490 |
|
|
88 |
|
|
498 |
|
Washington |
63 |
|
|
633 |
|
|
92 |
|
|
494 |
|
Total |
758 |
|
|
$ |
517 |
|
|
771 |
|
|
$ |
549 |
|
|
MARKET DATA BY REPORTING SEGMENT & STATE,
continued |
(unaudited) |
|
|
Three Months Ended March 31, |
|
2017 |
|
2016 |
|
Net New Home Orders |
|
Average Selling Communities |
|
Net New Home Orders |
|
Average Selling Communities |
Net New Home
Orders:
|
|
|
|
|
|
|
|
Maracay
Homes |
184 |
|
|
16.5 |
|
|
201 |
|
|
18.5 |
|
Pardee
Homes |
378 |
|
|
28.5 |
|
|
313 |
|
|
23.5 |
|
Quadrant Homes |
120 |
|
|
7.5 |
|
|
133 |
|
|
9.5 |
|
Trendmaker Homes |
151 |
|
|
32.0 |
|
|
122 |
|
|
24.3 |
|
TRI Pointe Homes |
353 |
|
|
29.3 |
|
|
265 |
|
|
25.5 |
|
Winchester Homes |
113 |
|
|
11.7 |
|
|
115 |
|
|
13.2 |
|
Total |
1,299 |
|
|
125.5 |
|
|
1,149 |
|
|
114.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
2017 |
|
2016 |
|
Net New Home Orders |
|
Average Selling Communities |
|
Net New Home Orders |
|
Average Selling Communities |
Net New Home
Orders: |
|
|
|
|
|
|
|
California |
564 |
|
|
41.5 |
|
|
406 |
|
|
33.2 |
|
Colorado |
53 |
|
|
5.0 |
|
|
43 |
|
|
5.0 |
|
Maryland |
67 |
|
|
8.0 |
|
|
64 |
|
|
6.2 |
|
Virginia |
46 |
|
|
3.7 |
|
|
51 |
|
|
7.0 |
|
Arizona |
184 |
|
|
16.5 |
|
|
201 |
|
|
18.5 |
|
Nevada |
114 |
|
|
11.3 |
|
|
129 |
|
|
10.8 |
|
Texas |
151 |
|
|
32.0 |
|
|
122 |
|
|
24.3 |
|
Washington |
120 |
|
|
7.5 |
|
|
133 |
|
|
9.5 |
|
Total |
1,299 |
|
|
125.5 |
|
|
1,149 |
|
|
114.5 |
|
|
MARKET DATA BY REPORTING SEGMENT & STATE,
continued |
(dollars in thousands) |
(unaudited) |
|
|
As of March 31, 2017 |
|
As of March 31, 2016 |
|
Backlog Units |
|
Backlog Dollar Value |
|
Average Sales Price |
|
Backlog Units |
|
Backlog Dollar Value |
|
Average Sales Price |
Backlog: |
|
|
|
|
|
|
|
|
|
|
|
Maracay
Homes |
313 |
|
|
$ |
153,389 |
|
|
$ |
490 |
|
|
289 |
|
|
$ |
121,130 |
|
|
$ |
419 |
|
Pardee
Homes |
442 |
|
|
248,621 |
|
|
562 |
|
|
379 |
|
|
242,278 |
|
|
639 |
|
Quadrant
Homes |
158 |
|
|
111,551 |
|
|
706 |
|
|
184 |
|
|
99,170 |
|
|
539 |
|
Trendmaker Homes |
208 |
|
|
107,860 |
|
|
519 |
|
|
170 |
|
|
90,870 |
|
|
535 |
|
TRI
Pointe Homes |
443 |
|
|
283,986 |
|
|
641 |
|
|
354 |
|
|
238,669 |
|
|
674 |
|
Winchester Homes |
170 |
|
|
108,756 |
|
|
640 |
|
|
158 |
|
|
99,415 |
|
|
629 |
|
Total |
1,734 |
|
|
$ |
1,014,163 |
|
|
$ |
585 |
|
|
1,534 |
|
|
$ |
891,532 |
|
|
$ |
581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2017 |
|
As of March 31, 2016 |
|
Backlog Units |
|
Backlog Dollar Value |
|
Average Sales Price |
|
Backlog Units |
|
Backlog Dollar Value |
|
Average Sales Price |
Backlog: |
|
|
|
|
|
|
|
|
|
|
|
California |
667 |
|
|
$ |
421,381 |
|
|
$ |
632 |
|
|
493 |
|
|
$ |
376,645 |
|
|
$ |
764 |
|
Colorado |
82 |
|
|
50,100 |
|
|
611 |
|
|
89 |
|
|
45,694 |
|
|
513 |
|
Maryland |
123 |
|
|
73,226 |
|
|
595 |
|
|
93 |
|
|
55,444 |
|
|
596 |
|
Virginia |
47 |
|
|
35,530 |
|
|
756 |
|
|
65 |
|
|
43,971 |
|
|
676 |
|
Arizona |
313 |
|
|
153,389 |
|
|
490 |
|
|
289 |
|
|
121,130 |
|
|
419 |
|
Nevada |
136 |
|
|
61,126 |
|
|
449 |
|
|
151 |
|
|
58,608 |
|
|
388 |
|
Texas |
208 |
|
|
107,860 |
|
|
519 |
|
|
170 |
|
|
90,870 |
|
|
535 |
|
Washington |
158 |
|
|
111,551 |
|
|
706 |
|
|
184 |
|
|
99,170 |
|
|
539 |
|
Total |
1,734 |
|
|
$ |
1,014,163 |
|
|
$ |
585 |
|
|
1,534 |
|
|
$ |
891,532 |
|
|
$ |
581 |
|
|
MARKET DATA BY REPORTING SEGMENT & STATE,
continued |
(unaudited) |
|
|
March 31, |
|
December 31, |
|
2017 |
|
2016 |
Lots Owned or
Controlled: |
|
|
|
Maracay
Homes |
2,611 |
|
|
2,053 |
|
Pardee
Homes |
16,482 |
|
|
16,912 |
|
Quadrant
Homes |
1,800 |
|
|
1,582 |
|
Trendmaker Homes |
1,902 |
|
|
1,999 |
|
TRI
Pointe Homes |
3,555 |
|
|
3,479 |
|
Winchester Homes |
2,410 |
|
|
2,284 |
|
Total |
28,760 |
|
|
28,309 |
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
2017 |
|
2016 |
Lots Owned or
Controlled: |
|
|
|
California |
16,933 |
|
|
17,245 |
|
Colorado |
884 |
|
|
918 |
|
Maryland |
1,811 |
|
|
1,779 |
|
Virginia |
599 |
|
|
505 |
|
Arizona |
2,611 |
|
|
2,053 |
|
Nevada |
2,220 |
|
|
2,228 |
|
Texas |
1,902 |
|
|
1,999 |
|
Washington |
1,800 |
|
|
1,582 |
|
Total |
28,760 |
|
|
28,309 |
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
2017 |
|
2016 |
Lots by
Ownership Type: |
|
|
|
Lots
owned |
25,134 |
|
|
25,283 |
|
Lots
controlled (1) |
3,626 |
|
|
3,026 |
|
Total |
28,760 |
|
|
28,309 |
|
__________(1) As of March 31, 2017 and
December 31, 2016, lots controlled included lots that were
under land option contracts or purchase contracts.
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(unaudited)
In this press release, we utilize certain financial measures
that are non-GAAP financial measures as defined by the Securities
and Exchange Commission. We present these measures because we
believe they and similar measures are useful to management and
investors in evaluating the Company’s operating performance and
financing structure. We also believe these measures facilitate the
comparison of our operating performance and financing structure
with other companies in our industry. Because these measures are
not calculated in accordance with Generally Accepted Accounting
Principles (“GAAP”), they may not be comparable to other similarly
titled measures of other companies and should not be considered in
isolation or as a substitute for, or superior to, financial
measures prepared in accordance with GAAP.
The following table reconciles homebuilding gross margin
percentage, as reported and prepared in accordance with GAAP, to
the non-GAAP measure adjusted homebuilding gross margin percentage.
We believe this information is meaningful as it isolates the impact
that leverage has on homebuilding gross margin and permits
investors to make better comparisons with our competitors, who
adjust gross margins in a similar fashion.
|
Three Months Ended March 31, |
|
2017 |
|
% |
|
2016 |
|
% |
|
(dollars in thousands) |
Home sales revenue |
$ |
392,004 |
|
|
100.0 |
% |
|
$ |
423,055 |
|
|
100.0 |
% |
Cost of home sales |
318,404 |
|
|
81.2 |
% |
|
324,499 |
|
|
76.7 |
% |
Homebuilding gross
margin |
73,600 |
|
|
18.8 |
% |
|
98,556 |
|
|
23.3 |
% |
Add: interest in cost of home sales |
9,680 |
|
|
2.5 |
% |
|
8,830 |
|
|
2.1 |
% |
Add: impairments and lot option abandonments
|
288 |
|
|
0.1 |
% |
|
182 |
|
|
0.0 |
% |
Adjusted homebuilding
gross margin |
$ |
83,568 |
|
|
21.3 |
% |
|
$ |
107,568 |
|
|
25.4 |
% |
Homebuilding gross
margin percentage |
18.8 |
% |
|
|
|
23.3 |
% |
|
|
Adjusted homebuilding
gross margin percentage |
21.3 |
% |
|
|
|
25.4 |
% |
|
|
|
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.
|
March 31, 2017 |
|
December 31, 2016 |
Unsecured revolving
credit facility |
$ |
250,000 |
|
|
$ |
200,000 |
|
Seller financed
loans |
— |
|
|
13,726 |
|
Senior notes |
1,169,914 |
|
|
1,168,307 |
|
Total
debt |
1,419,914 |
|
|
1,382,033 |
|
Stockholders’
equity |
1,839,174 |
|
|
1,829,447 |
|
Total
capital |
$ |
3,259,088 |
|
|
$ |
3,211,480 |
|
Ratio of
debt-to-capital(1) |
43.6 |
% |
|
43.0 |
% |
|
|
|
|
Total debt |
$ |
1,419,914 |
|
|
$ |
1,382,033 |
|
Less: Cash and cash
equivalents |
(128,519 |
) |
|
(208,657 |
) |
Net
debt |
1,291,395 |
|
|
1,173,376 |
|
Stockholders’
equity |
1,839,174 |
|
|
1,829,447 |
|
Total
capital |
$ |
3,130,569 |
|
|
$ |
3,002,823 |
|
Ratio of net
debt-to-capital(2) |
41.3 |
% |
|
39.1 |
% |
__________(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 March 31, |
|
2017 |
|
2016 |
|
(in thousands) |
Net income available to
common stockholders |
$ |
8,193 |
|
|
$ |
28,550 |
|
Interest
expense: |
|
|
|
Interest incurred |
18,873 |
|
|
15,149 |
|
Interest capitalized |
(18,873 |
) |
|
(15,149 |
) |
Amortization of interest in cost of sales |
9,687 |
|
|
8,830 |
|
Provision
for income taxes |
4,614 |
|
|
15,490 |
|
Depreciation and amortization |
822 |
|
|
1,792 |
|
Amortization of stock-based compensation |
3,841 |
|
|
2,605 |
|
EBITDA |
27,157 |
|
|
57,267 |
|
Impairments and lot abandonments |
321 |
|
|
182 |
|
Restructuring charges |
203 |
|
|
135 |
|
Adjusted EBITDA |
$ |
27,681 |
|
|
$ |
57,584 |
|
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