–Net New Home Orders Increased 12% Year-Over-Year to 1,814–
–Backlog Units Increased 35% Year-Over-Year to 2,741–
–Active Selling Communities Increased 15% Year-Over-Year to 156–
–Home Sales Revenue of
–Homebuilding Gross Margin Percentage of 23.0%–
–Diluted Earnings Per Share of
–Debt-to-Capital Ratio of 31.2% and Total Liquidity of
“I am pleased to report our first quarter results, which again met or exceeded the high end of our guidance across all key operating metrics,” said
“Building on our successful start to 2024, we are thrilled to have recently announced the official expansion of our national footprint with the opening of new divisions in
Results and Operational Data for First Quarter 2024 and Comparisons to First Quarter 2023
- Net income available to common stockholders was
$99.1 million , or$1.03 per diluted share, compared to$74.7 million , or$0.73 per diluted share - Home sales revenue of
$918.4 million compared to$768.4 million , an increase of 20%- New home deliveries of 1,393 homes compared to 1,065 homes, an increase of 31%
- Average sales price of homes delivered of
$659,000 compared to$722,000 , a decrease of 9%
- Homebuilding gross margin percentage of 23.0% compared to 23.5%, a decrease of 50 basis points
- Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 26.4%*
- SG&A expense as a percentage of home sales revenue of 11.1% compared to 11.5%, a decrease of 40 basis points
- Net new home orders of 1,814 compared to 1,619, an increase of 12%
- Active selling communities averaged 153.8 compared to 136.0, an increase of 13%
- Net new home orders per average selling community were 11.8 orders (3.9 monthly) compared to 11.9 orders (4.0 monthly)
- Cancellation rate of 7% compared to 10%
- Backlog units at quarter end of 2,741 homes compared to 2,026, an increase of 35%
- Dollar value of backlog at quarter end of
$2.0 billion compared to$1.5 billion , an increase of 30% - Average sales price of homes in backlog at quarter end of
$712,000 compared to$742,000 , a decrease of 4%
- Dollar value of backlog at quarter end of
- Ratios of debt-to-capital and net debt-to-net capital of 31.2% and 12.6%*, respectively, as of
March 31, 2024 - Repurchased 1,442,785 shares of common stock at a weighted average price per share of
$34.66 for an aggregate dollar amount of$50.0 million in the three months endedMarch 31, 2024 - Ended the first quarter of 2024 with total liquidity of
$1.6 billion , including cash and cash equivalents of$944.0 million and$703.2 million of availability under our revolving credit facility
* See “Reconciliation of Non-GAAP Financial Measures”
Outlook
For the second quarter, the Company anticipates delivering between 1,500 and 1,600 homes at an average sales price between
For the full year, the Company anticipates delivering between 6,200 and 6,400 homes at an average sales price between
Earnings Conference Call
The Company will host a conference call via live webcast for investors and other interested parties beginning at
About
One of the largest homebuilders in the
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
Investor Relations Contact:
InvestorRelations@TriPointeHomes.com, 949-478-8696
Media Contact:
KEY OPERATIONS AND FINANCIAL DATA | |||||||||||||||
(dollars in thousands) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended | |||||||||||||||
2024 | 2023 | Change | % Change | ||||||||||||
Operating Data: | (unaudited) | ||||||||||||||
Home sales revenue | $ | 918,353 | $ | 768,405 | $ | 149,948 | 20 | % | |||||||
Homebuilding gross margin | $ | 211,049 | $ | 180,287 | $ | 30,762 | 17 | % | |||||||
Homebuilding gross margin % | 23.0 | % | 23.5 | % | (0.5 | )% | |||||||||
Adjusted homebuilding gross margin %* | 26.4 | % | 26.2 | % | 0.2 | % | |||||||||
SG&A expense | $ | 101,552 | $ | 88,228 | $ | 13,324 | 15 | % | |||||||
SG&A expense as a % of home sales revenue | 11.1 | % | 11.5 | % | (0.4 | )% | |||||||||
Net income available to common stockholders | $ | 99,055 | $ | 74,742 | $ | 24,313 | 33 | % | |||||||
Adjusted EBITDA* | $ | 175,893 | $ | 133,975 | $ | 41,918 | 31 | % | |||||||
Interest incurred | $ | 36,156 | $ | 37,479 | $ | (1,323 | ) | (4 | )% | ||||||
Interest in cost of home sales | $ | 30,649 | $ | 20,226 | $ | 10,423 | 52 | % | |||||||
Other Data: | |||||||||||||||
Net new home orders | 1,814 | 1,619 | 195 | 12 | % | ||||||||||
New homes delivered | 1,393 | 1,065 | 328 | 31 | % | ||||||||||
Average sales price of homes delivered | $ | 659 | $ | 722 | $ | (63 | ) | (9 | )% | ||||||
Cancellation rate | 7 | % | 10 | % | (3 | )% | |||||||||
Average selling communities | 153.8 | 136.0 | 17.8 | 13 | % | ||||||||||
Selling communities at end of period | 156 | 136 | 20 | 15 | % | ||||||||||
Backlog (estimated dollar value) | $ | 1,950,590 | $ | 1,503,382 | $ | 447,208 | 30 | % | |||||||
Backlog (homes) | 2,741 | 2,026 | 715 | 35 | % | ||||||||||
Average sales price in backlog | $ | 712 | $ | 742 | $ | (30 | ) | (4 | )% | ||||||
2024 | 2023 | Change | % Change | ||||||||||||
Balance Sheet Data: | (unaudited) | ||||||||||||||
Cash and cash equivalents | $ | 943,998 | $ | 868,953 | $ | 75,045 | 9 | % | |||||||
Real estate inventories | $ | 3,422,883 | $ | 3,337,483 | $ | 85,400 | 3 | % | |||||||
Lots owned or controlled | 34,153 | 31,960 | 2,193 | 7 | % | ||||||||||
Homes under construction (1) | 3,317 | 3,088 | 229 | 7 | % | ||||||||||
Homes completed, unsold | 232 | 263 | (31 | ) | (12 | )% | |||||||||
Debt | $ | 1,383,529 | $ | 1,382,586 | $ | 943 | 0 | % | |||||||
Stockholders’ equity | $ | 3,049,646 | $ | 3,010,958 | $ | 38,688 | 1 | % | |||||||
Book capitalization | $ | 4,433,175 | $ | 4,393,544 | $ | 39,631 | 1 | % | |||||||
Ratio of debt-to-capital | 31.2 | % | 31.5 | % | (0.3 | )% | |||||||||
Ratio of net debt-to-net capital* | 12.6 | % | 14.6 | % | (2.0 | )% |
__________
(1) Homes under construction included 60 and 69 models as of
* See “Reconciliation of Non-GAAP Financial Measures”
CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except share and per share amounts) | ||||||||
2024 | 2023 | |||||||
Assets | (unaudited) | |||||||
Cash and cash equivalents | $ | 943,998 | $ | 868,953 | ||||
Receivables | 125,133 | 224,636 | ||||||
Real estate inventories | 3,422,883 | 3,337,483 | ||||||
Investments in unconsolidated entities | 124,723 | 131,824 | ||||||
156,603 | 156,603 | |||||||
Deferred tax assets, net | 37,996 | 37,996 | ||||||
Other assets | 158,639 | 157,093 | ||||||
Total assets | $ | 4,969,975 | $ | 4,914,588 | ||||
Liabilities | ||||||||
Accounts payable | $ | 51,736 | $ | 64,833 | ||||
Accrued expenses and other liabilities | 485,052 | 453,531 | ||||||
Loans payable | 288,337 | 288,337 | ||||||
Senior notes | 1,095,192 | 1,094,249 | ||||||
Total liabilities | 1,920,317 | 1,900,950 | ||||||
Commitments and contingencies | ||||||||
Equity | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, | — | — | ||||||
Common stock, | 949 | 955 | ||||||
Additional paid-in capital | — | — | ||||||
Retained earnings | 3,048,697 | 3,010,003 | ||||||
Total stockholders’ equity | 3,049,646 | 3,010,958 | ||||||
Noncontrolling interests | 12 | 2,680 | ||||||
Total equity | 3,049,658 | 3,013,638 | ||||||
Total liabilities and equity | $ | 4,969,975 | $ | 4,914,588 |
CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||
(in thousands, except share and per share amounts) | ||||||||
(unaudited) | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Homebuilding: | ||||||||
Home sales revenue | $ | 918,353 | $ | 768,405 | ||||
Land and lot sales revenue | 7,068 | 1,706 | ||||||
Other operations revenue | 787 | 674 | ||||||
Total revenues | 926,208 | 770,785 | ||||||
Cost of home sales | 707,304 | 588,118 | ||||||
Cost of land and lot sales | 5,757 | 1,443 | ||||||
Other operations expense | 765 | 665 | ||||||
Sales and marketing | 50,224 | 41,862 | ||||||
General and administrative | 51,328 | 46,366 | ||||||
Homebuilding income from operations | 110,830 | 92,331 | ||||||
Equity in income of unconsolidated entities | 57 | 227 | ||||||
Other income, net | 15,226 | 7,604 | ||||||
Homebuilding income before income taxes | 126,113 | 100,162 | ||||||
Financial Services: | ||||||||
Revenues | 13,194 | 8,876 | ||||||
Expenses | 8,727 | 5,831 | ||||||
Financial services income before income taxes | 4,467 | 3,045 | ||||||
Income before income taxes | 130,580 | 103,207 | ||||||
Provision for income taxes | (31,584 | ) | (27,350 | ) | ||||
Net income | 98,996 | 75,857 | ||||||
Net income attributable to noncontrolling interests | 59 | (1,115 | ) | |||||
Net income available to common stockholders | $ | 99,055 | $ | 74,742 | ||||
Earnings per share | ||||||||
Basic | $ | 1.04 | $ | 0.74 | ||||
Diluted | $ | 1.03 | $ | 0.73 | ||||
Weighted average shares outstanding | ||||||||
Basic | 95,232,315 | 101,019,253 | ||||||
Diluted | 95,846,756 | 101,706,438 |
MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY | ||||||||||||||
(dollars in thousands) | ||||||||||||||
(unaudited) | ||||||||||||||
Three Months Ended | ||||||||||||||
2024 | 2023 | |||||||||||||
New Homes Delivered | Average Sales Price | New Homes Delivered | Average Sales Price | |||||||||||
137 | $ | 736 | 135 | $ | 785 | |||||||||
417 | 771 | 339 | 829 | |||||||||||
113 | 684 | 98 | 761 | |||||||||||
Washington | 53 | 901 | 18 | 956 | ||||||||||
West total | 720 | 760 | 590 | 811 | ||||||||||
42 | 738 | 44 | 788 | |||||||||||
440 | 549 | 210 | 625 | |||||||||||
Central total | 482 | 565 | 254 | 653 | ||||||||||
Carolinas(1) | 174 | 462 | 175 | 438 | ||||||||||
17 | 1,056 | 46 | 1,023 | |||||||||||
East total | 191 | 515 | 221 | 560 | ||||||||||
Total | 1,393 | $ | 659 | 1,065 | $ | 722 | ||||||||
Three Months Ended | ||||||||||||||
2024 | 2023 | |||||||||||||
Net New Home Orders | Average Selling Communities | Net New Home Orders | Average Selling Communities | |||||||||||
156 | 12.2 | 117 | 13.0 | |||||||||||
613 | 46.0 | 701 | 53.2 | |||||||||||
154 | 9.5 | 84 | 7.0 | |||||||||||
Washington | 107 | 5.8 | 52 | 5.0 | ||||||||||
West total | 1,030 | 73.5 | 954 | 78.2 | ||||||||||
47 | 11.0 | 41 | 6.0 | |||||||||||
483 | 52.5 | 314 | 33.8 | |||||||||||
Central total | 530 | 63.5 | 355 | 39.8 | ||||||||||
Carolinas(1) | 179 | 11.5 | 251 | 14.5 | ||||||||||
75 | 5.3 | 59 | 3.5 | |||||||||||
East total | 254 | 16.8 | 310 | 18.0 | ||||||||||
Total | 1,814 | 153.8 | 1,619 | 136.0 |
(1) Carolinas comprises
(2) Washington
MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY, continued | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||
As of | As of | |||||||||||||||||||||
Backlog Units | Backlog Dollar Value | Average Sales Price | Backlog Units | Backlog Dollar Value | Average Sales Price | |||||||||||||||||
278 | $ | 205,547 | $ | 739 | 360 | $ | 308,514 | $ | 857 | |||||||||||||
894 | 713,036 | 798 | 660 | 506,979 | 768 | |||||||||||||||||
172 | 105,211 | 612 | 111 | 86,919 | 783 | |||||||||||||||||
Washington | 144 | 130,336 | 905 | 69 | 61,148 | 886 | ||||||||||||||||
West total | 1,488 | 1,154,130 | 776 | 1,200 | 963,560 | 803 | ||||||||||||||||
53 | 36,840 | 695 | 47 | 35,511 | 756 | |||||||||||||||||
749 | 442,134 | 590 | 386 | 236,386 | 612 | |||||||||||||||||
Central total | 802 | 478,974 | 597 | 433 | 271,897 | 628 | ||||||||||||||||
Carolinas(1) | 287 | 148,286 | 517 | 296 | 139,815 | 472 | ||||||||||||||||
164 | 169,200 | 1,032 | 97 | 128,110 | 1,321 | |||||||||||||||||
East total | 451 | 317,486 | 704 | 393 | 267,925 | 682 | ||||||||||||||||
Total | 2,741 | $ | 1,950,590 | $ | 712 | 2,026 | $ | 1,503,382 | $ | 742 | ||||||||||||
2024 | 2023 | |||||||||||||||||||||
Lots Owned or Controlled: | ||||||||||||||||||||||
2,258 | 2,394 | |||||||||||||||||||||
10,846 | 10,148 | |||||||||||||||||||||
1,771 | 1,785 | |||||||||||||||||||||
Washington | 659 | 712 | ||||||||||||||||||||
West total | 15,534 | 15,039 | ||||||||||||||||||||
2,517 | 1,908 | |||||||||||||||||||||
10,321 | 10,056 | |||||||||||||||||||||
61 | — | |||||||||||||||||||||
Central total | 12,899 | 11,964 | ||||||||||||||||||||
Carolinas(1) | 4,457 | 4,038 | ||||||||||||||||||||
1,263 | 919 | |||||||||||||||||||||
East total | 5,720 | 4,957 | ||||||||||||||||||||
Total | 34,153 | 31,960 | ||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||
Lots by Ownership Type: | ||||||||||||||||||||||
Lots owned | 18,480 | 18,739 | ||||||||||||||||||||
Lots controlled(3) | 15,673 | 13,221 | ||||||||||||||||||||
Total | 34,153 | 31,960 |
(1) Carolinas comprises
(2)
(3) As of
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
The following table reconciles the homebuilding gross margin percentage, as reported and prepared in accordance with GAAP, to the non-GAAP measure adjusted homebuilding gross margin percentage. We believe this information is meaningful as it isolates the impact that leverage has on homebuilding gross margin and permits investors to make better comparisons with our competitors, who adjust gross margins in a similar fashion.
Three Months Ended | ||||||||||||||
2024 | % | 2023 | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Home sales revenue | $ | 918,353 | 100.0 | % | $ | 768,405 | 100.0 | % | ||||||
Cost of home sales | 707,304 | 77.0 | % | 588,118 | 76.5 | % | ||||||||
Homebuilding gross margin | 211,049 | 23.0 | % | 180,287 | 23.5 | % | ||||||||
Add: interest in cost of home sales | 30,649 | 3.3 | % | 20,226 | 2.6 | % | ||||||||
Add: impairments and lot option abandonments | 402 | 0.0 | % | 717 | 0.1 | % | ||||||||
Adjusted homebuilding gross margin | $ | 242,100 | 26.4 | % | $ | 201,230 | 26.2 | % | ||||||
Homebuilding gross margin percentage | 23.0 | % | 23.5 | % | ||||||||||
Adjusted homebuilding gross margin percentage | 26.4 | % | 26.2 | % |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
(unaudited)
The following table reconciles the Company’s ratio of debt-to-capital to the non-GAAP ratio of net debt-to-net capital. We believe that the ratio of net debt-to-net capital is a relevant financial measure for management and investors to understand the leverage employed in our operations and as an indicator of the Company’s ability to obtain financing.
Loans payable | $ | 288,337 | $ | 288,337 | ||||
Senior notes | 1,095,192 | 1,094,249 | ||||||
Total debt | 1,383,529 | 1,382,586 | ||||||
Stockholders’ equity | 3,049,646 | 3,010,958 | ||||||
Total capital | $ | 4,433,175 | $ | 4,393,544 | ||||
Ratio of debt-to-capital(1) | 31.2 | % | 31.5 | % | ||||
Total debt | $ | 1,383,529 | $ | 1,382,586 | ||||
Less: Cash and cash equivalents | (943,998 | ) | (868,953 | ) | ||||
Net debt | 439,531 | 513,633 | ||||||
Stockholders’ equity | 3,049,646 | 3,010,958 | ||||||
Net capital | $ | 3,489,177 | $ | 3,524,591 | ||||
Ratio of net debt-to-net capital(2) | 12.6 | % | 14.6 | % |
__________
(1) The ratio of debt-to-capital is computed as the quotient obtained by dividing total debt by the sum of total debt plus stockholders’ equity.
(2) The ratio of net debt-to-net capital is computed as the quotient obtained by dividing net debt (which is total debt less cash and cash equivalents) by the sum of net debt plus stockholders’ equity.
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 | ||||||||
2024 | 2023 | |||||||
(in thousands) | ||||||||
Net income available to common stockholders | $ | 99,055 | $ | 74,742 | ||||
Interest expense: | ||||||||
Interest incurred | 36,156 | 37,479 | ||||||
Interest capitalized | (36,156 | ) | (37,479 | ) | ||||
Amortization of interest in cost of sales | 30,846 | 20,251 | ||||||
Provision for income taxes | 31,584 | 27,350 | ||||||
Depreciation and amortization | 7,327 | 7,054 | ||||||
EBITDA | 168,812 | 129,397 | ||||||
Amortization of stock-based compensation | 6,679 | 3,861 | ||||||
Impairments and lot option abandonments | 402 | 717 | ||||||
Adjusted EBITDA | $ | 175,893 | $ | 133,975 |
Source:
2024 GlobeNewswire, Inc., source