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Tri Pointe Homes Inc
Tri Pointe Homes, Inc. Reports 2024 Fourth Quarter And Full Year Results
Business
Feb 18 2025
22 min read

Tri Pointe Homes, Inc. Reports 2024 Fourth Quarter And Full Year Results

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Fourth Quarter Highlights

-New Home Deliveries of 1,748 for Home Sales Revenue of $1.2 Billion-
-Homebuilding Gross Margin Percentage of 23.3%-
-Selling, General and Administrative Expense as a Percentage of Home Sales Revenue of 10.3%-
-Diluted Earnings Per Share of $1.37-

INCLINE VILLAGE, Nev., Feb. 18, 2025 (GLOBE NEWSWIRE) -- Tri Pointe Homes, Inc. (the “Company”) (NYSE: TPH) today announced results for the fourth quarter ended December 31, 2024 and full year 2024.

“Tri Pointe Homes delivered strong fourth quarter results, capping off another exceptional year for our company,” said Tri Pointe Homes Chief Executive Officer Doug Bauer. “During the quarter, we delivered 1,748 new homes, generating $1.2 billion in home sales revenue. With our homebuilding gross margin improving 40 basis points year-over-year to 23.3% and SG&A as a percentage of home sales revenue of 10.3%, we generated net income available to common stockholders of $129 million, or $1.37 per diluted share.”

“We also achieved several milestones for the full year, including delivering a record-high 6,460 new homes with net income available to common stockholders of $458 million, or $4.83 per diluted share, representing a 40% increase in diluted earnings per share year-over-year,” continued Mr. Bauer. “In addition, we generated record operating cash flows, redeemed $450 million in senior notes, and finished the year with the strongest balance sheet and liquidity in our history. Through these strong results and our disciplined capital allocation, including the repurchase of 4.0 million in shares outstanding through our stock repurchase program, we increased year-over-year book value per share by 14.5%.”

“We recognize that elevated mortgage rates in the fourth quarter caused some buyers to remain on the sidelines for the short-term, resulting in softer seasonal sales in the last part of 2024,” said Tom Mitchell, Tri Pointe Homes President and Chief Operating Officer. “However, we are seeing a weekly increase in demand and reduced incentives in the early part of 2025 and are optimistic for the spring selling season. We are confident that strong long-term fundamentals, including both favorable demographics and the ongoing supply and demand imbalance, position Tri Pointe Homes and our industry for ongoing success. As a company, we continue to invest in our core market strategy, focusing on A locations, a differentiated premium product offering, and an elevated customer experience. This commitment enables us to attract a well-qualified and resilient buyer profile who desires our product, reinforcing our long-term value proposition.”

Mr. Bauer concluded, “With a robust supply of over 36,000 total lots, we believe we are well-positioned to capitalize on the housing shortage and continue to grow our business, delivering strong cash flows and returns to stockholders. Our diverse product offerings, combined with the flexibility of our 54% optioned lot supply, enable us to adapt to changing market conditions and efficiently allocate capital to maximize earnings. Our strong balance sheet supports further capital returns through share repurchases, while maintaining the liquidity necessary to expand our market presence and pursue organic growth opportunities.”

Results and Operational Data for Fourth Quarter 2024 and Comparisons to Fourth Quarter 2023

  • Net income available to common stockholders was $129.2 million, or $1.37 per diluted share, compared to $132.8 million, or $1.36 per diluted share

  • Home sales revenue for the quarter was $1.2 billion, a decrease of 2%

    • New home deliveries of 1,748 homes compared to 1,813 homes, a decrease of 4%

    • Average sales price of homes delivered of $699,000 compared to $685,000, an increase of 2%

  • Homebuilding gross margin percentage of 23.3% compared to 22.9%, an increase of 40 basis points

    • Excluding interest, impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 26.8%*

  • Selling, general and administrative (“SG&A”) expense as a percentage of homes sales revenue of 10.3% compared to 9.3%, an increase of 100 basis points

  • Net new home orders of 940 compared to 1,078, a decrease of 13%

  • Active selling communities averaged 146.8 compared to 159.3, a decrease of 8%

    • Net new home orders per average selling community decreased by 9% to 6.4 orders (2.1 monthly) compared to 6.8 orders (2.3 monthly)

    • Cancellation rate of 14% compared to 12%

  • Backlog units at quarter end of 1,517 homes compared to 2,320, a decrease of 35%

    • Dollar value of backlog at quarter end of $1.2 billion compared to $1.6 billion, a decrease of 28%

    • Average sales price in backlog at quarter end of $768,000 compared to $695,000, an increase of 11%

  • Ratios of homebuilding debt-to-capital and net homebuilding debt-to-net capital of 21.6% and (1.6)%*, respectively, as of December 31, 2024

  • Repurchased 1,202,913 shares of common stock at an average price of $41.57 for an aggregate dollar amount of $50.0 million during the quarter ended December 31, 2024

  • Announced a new stock repurchase program authorizing the repurchase of up to $250 million of common stock through December 31, 2025

  • Ended fourth quarter of 2024 with total liquidity of $1.7 billion, including cash of $970.0 million and $694.1 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 2024 and Comparisons to Full Year 2023

  • Net income available to common stockholders was $458.0 million, or $4.83 per diluted share, compared to $343.7 million, or $3.45 per diluted share

  • Home sales revenue of $4.4 billion compared to $3.7 billion, an increase of 20%

    • New home deliveries of 6,460 homes compared to 5,274 homes, an increase of 22%

    • Average sales price of homes delivered of $679,000 compared to $693,000, a decrease of 2%

  • Homebuilding gross margin percentage of 23.3% compared to 22.3%, an increase of 100 basis points

    • Excluding interest, impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 26.8%*

  • SG&A expense as a percentage of homes sales revenue of 10.8% compared to 11.0%, a decrease of 20 basis points

  • Net new home orders of 5,657 compared to 6,122, a decrease of 8%

  • Active selling communities averaged 150.4 compared to 147.5, an increase of 2%

    • Net new home orders per average selling community decreased by 11% to 37.6 orders (3.1 monthly) compared to 41.5 orders (3.5 monthly)

    • Cancellation rate of 10%, unchanged from the prior year

  • Repurchased 3,964,537 shares of common stock at an average price of $36.97 for an aggregate dollar amount of $146.6 million during the full year ended December 31, 2024

*  See “Reconciliation of Non-GAAP Financial Measures”

Outlook

For the first quarter of 2025, the Company anticipates delivering between 900 and 1,100 homes at an average sales price between $685,000 and $695,000. The Company expects its homebuilding gross margin percentage to be in the range of 22.0% to 23.0% for the first quarter of 2025 and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 15.0% to 16.0%. Lastly, the Company expects its effective tax rate for the first quarter of 2025 to be approximately 26.0%.

For the full year of 2025, the Company anticipates delivering between 5,500 and 6,100 homes at an average sales price between $660,000 and $670,000. The Company expects its homebuilding gross margin percentage to be in the range of 20.5% to 22.0% for the full year of 2025 and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 11.0% to 12.0%. Lastly, the Company expects its effective tax rate for the year to be approximately 26.0%.

Earnings Conference Call

The Company will host a conference call via live webcast for investors and other interested parties beginning at 7:00 a.m. Pacific Time (10:00 a.m. Eastern Time) on Tuesday, February 18, 2025. 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 presentation slides on the internet through 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 Fourth 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 one week following the call toll free at (844) 512-2921, or (412) 317-6671 for international participants, using the reference number 13751349. An archive of the webcast will also be available on the Company’s website for a limited time.

About Tri Pointe Homes®

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 and was named 2024 Developer of the Year. The company was also 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 PEOPLE Companies That Care® in 2023 and 2024. The company was also named as a Great Place To Work-Certified™ company for four years in a row (2021 through 2024), and was named on several Great Place To Work® Best Workplaces list (2022 through 2024). 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, 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, particularly within California; 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 and labor; 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 California; 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 diseases, 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:

Media Contact:

 

 

InvestorRelations@TriPointeHomes.com, 949-478-8696

Carol Ruiz, cruiz@newgroundco.com, 310-437-0045


 

KEY OPERATIONS AND FINANCIAL DATA
(dollars in thousands)
(unaudited)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

 

Change

 

%
Change

 

 

2024

 

 

 

2023

 

 

Change

 

%
Change

Operating Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home sales revenue

$

1,221,405

 

 

$

1,241,258

 

 

$

(19,853

)

 

(2

)%

 

$

4,386,447

 

 

$

3,654,035

 

 

$

732,412

 

 

20

%

Homebuilding gross margin

$

285,008

 

 

$

283,936

 

 

$

1,072

 

 

0

%

 

$

1,022,566

 

 

$

815,522

 

 

$

207,044

 

 

25

%

Homebuilding gross margin %

 

23.3

%

 

 

22.9

%

 

 

0.4

%

 

 

 

 

23.3

%

 

 

22.3

%

 

 

1.0

%

 

 

Adjusted homebuilding gross margin %*

 

26.8

%

 

 

26.5

%

 

 

0.3

%

 

 

 

 

26.8

%

 

 

25.9

%

 

 

0.9

%

 

 

SG&A expense

$

125,975

 

 

$

115,456

 

 

$

10,519

 

 

9

%

 

$

472,556

 

 

$

402,382

 

 

$

70,174

 

 

17

%

SG&A expense as a % of home sales revenue

 

10.3

%

 

 

9.3

%

 

 

1.0

%

 

 

 

 

10.8

%

 

 

11.0

%

 

(0.2

)%

 

 

Net income available to common stockholders

$

129,213

 

 

$

132,834

 

 

$

(3,621

)

 

(3

)%

 

$

458,029

 

 

$

343,702

 

 

$

114,327

 

 

33

%

Adjusted EBITDA*

$

235,307

 

 

$

236,146

 

 

$

(839

)

 

0

%

 

$

835,837

 

 

$

639,727

 

 

$

196,110

 

 

31

%

Interest incurred

$

23,162

 

 

$

35,377

 

 

$

(12,215

)

 

(35

)%

 

$

114,949

 

 

$

147,169

 

 

$

(32,220

)

 

(22

)%

Interest in cost of home sales

$

41,217

 

 

$

43,516

 

 

$

(2,299

)

 

(5

)%

 

$

148,547

 

 

$

116,143

 

 

$

32,404

 

 

28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net new home orders

 

940

 

 

 

1,078

 

 

 

(138

)

 

(13

)%

 

 

5,657

 

 

 

6,122

 

 

 

(465

)

 

(8

)%

New homes delivered

 

1,748

 

 

 

1,813

 

 

 

(65

)

 

(4

)%

 

 

6,460

 

 

 

5,274

 

 

 

1,186

 

 

22

%

Average sales price of homes delivered

$

699

 

 

$

685

 

 

$

14

 

 

2

%

 

$

679

 

 

$

693

 

 

$

(14

)

 

(2

)%

Cancellation rate

 

14

%

 

 

12

%

 

 

2

%

 

 

 

 

10

%

 

 

10

%

 

 

0

%

 

 

Average selling communities

 

146.8

 

 

 

159.3

 

 

 

(12.5

)

 

(8

)%

 

 

150.4

 

 

 

147.5

 

 

 

2.9

 

 

2

%

Selling communities at end of period

 

145

 

 

 

155

 

 

 

(10

)

 

(6

)%

 

 

 

 

 

 

 

 

Backlog (estimated dollar value)

$

1,164,602

 

 

$

1,612,114

 

 

$

(447,512

)

 

(28

)%

 

 

 

 

 

 

 

 

Backlog (homes)

 

1,517

 

 

 

2,320

 

 

 

(803

)

 

(35

)%

 

 

 

 

 

 

 

 

Average sales price in backlog

$

768

 

 

$

695

 

 

$

73

 

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,
2024

 

December 31,
2023

 

Change

 

 

 

 

 

 

 

 

 

 

Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

970,045

 

 

$

868,953

 

 

$

101,092

 

 

 

 

 

 

 

 

 

 

 

Real estate inventories

$

3,153,459

 

 

$

3,337,483

 

 

$

(184,024

)

 

 

 

 

 

 

 

 

 

 

Lots owned or controlled

 

36,490

 

 

 

31,960

 

 

 

4,530

 

 

 

 

 

 

 

 

 

 

 

Homes under construction (1)

 

2,386

 

 

 

3,088

 

 

 

(702

)

 

 

 

 

 

 

 

 

 

 

Homes completed, unsold

 

464

 

 

 

263

 

 

 

201

 

 

 

 

 

 

 

 

 

 

 

Total homebuilding debt

$

917,504

 

 

$

1,382,586

 

 

$

(465,082

)

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

$

3,335,710

 

 

$

3,010,958

 

 

$

324,752

 

 

 

 

 

 

 

 

 

 

 

Book capitalization

$

4,253,214

 

 

$

4,393,544

 

 

$

(140,330

)

 

 

 

 

 

 

 

 

 

 

Ratio of homebuilding debt-to-capital

 

21.6

%

 

 

31.5

%

 

(9.9

)%

 

 

 

 

 

 

 

 

 

 

Ratio of net homebuilding debt-to-capital*

(1.6

)%

 

 

14.6

%

 

(16.2

)%

 

 

 

 

 

 

 

 

 

 

_____________________________________
(1)  Homes under construction included 43 and 69 models at December 31, 2024 and December 31, 2023, respectively.
*    See “Reconciliation of Non-GAAP Financial Measures”

 

CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)

 

 

December 31,
2024

 

December 31,
2023

Assets

(unaudited)

 

 

Cash and cash equivalents

$

970,045

 

$

868,953

Receivables

 

111,613

 

 

224,636

Real estate inventories

 

3,153,459

 

 

3,337,483

Investments in unconsolidated entities

 

173,924

 

 

131,824

Mortgage loans held for sale

 

115,001

 

 

Goodwill and other intangible assets, net

 

156,603

 

 

156,603

Deferred tax assets, net

 

45,975

 

 

37,996

Other assets

 

164,495

 

 

157,093

Total assets

$

4,891,115

 

$

4,914,588

 

 

 

 

Liabilities

 

 

 

Accounts payable

$

68,228

 

$

64,833

Accrued expenses and other liabilities

 

465,563

 

 

453,531

Loans payable

 

270,970

 

 

288,337

Senior notes, net

 

646,534

 

 

1,094,249

Mortgage repurchase facilities

 

104,098

 

 

Total liabilities

 

1,555,393

 

 

1,900,950

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Equity

 

 

 

Stockholders' Equity:

 

 

 

Preferred stock, $0.01 par value, 50,000,000 shares authorized; no
  shares issued and outstanding as of December 31, 2024 and
  December 31, 2023, respectively

 

 

 

Common stock, $0.01 par value, 500,000,000 shares authorized;
  92,451,729 and 95,530,512 shares issued and outstanding at
  December 31, 2024 and December 31, 2023, respectively

 

925

 

 

955

Additional paid-in capital

 

 

 

Retained earnings

 

3,334,785

 

 

3,010,003

Total stockholders' equity

 

3,335,710

 

 

3,010,958

Noncontrolling interests

 

12

 

 

2,680

Total equity

 

3,335,722

 

 

3,013,638

Total liabilities and equity

$

4,891,115

 

$

4,914,588


 

CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Homebuilding:

 

 

 

 

 

 

 

Home sales revenue

$

1,221,405

 

 

$

1,241,258

 

 

$

4,386,447

 

 

$

3,654,035

 

Land and lot sales revenue

 

9,284

 

 

 

1,691

 

 

 

33,064

 

 

 

12,197

 

Other operations revenue

 

803

 

 

 

752

 

 

 

3,162

 

 

 

2,971

 

Total revenues

 

1,231,492

 

 

 

1,243,701

 

 

 

4,422,673

 

 

 

3,669,203

 

Cost of home sales

 

936,397

 

 

 

957,322

 

 

 

3,363,881

 

 

 

2,838,513

 

Cost of land and lot sales

 

9,007

 

 

 

1,796

 

 

 

30,591

 

 

 

12,083

 

Other operations expense

 

766

 

 

 

723

 

 

 

3,061

 

 

 

2,894

 

Sales and marketing

 

55,746

 

 

 

56,411

 

 

 

216,518

 

 

 

184,388

 

General and administrative

 

70,229

 

 

 

59,045

 

 

 

256,038

 

 

 

217,994

 

Homebuilding income from operations

 

159,347

 

 

 

168,404

 

 

 

552,584

 

 

 

413,331

 

Equity in (loss) income of unconsolidated entities

 

(22

)

 

 

(369

)

 

 

361

 

 

 

(97

)

Other income, net

 

7,822

 

 

 

9,085

 

 

 

39,640

 

 

 

39,446

 

Homebuilding income before income taxes

 

167,147

 

 

 

177,120

 

 

 

592,585

 

 

 

452,680

 

Financial Services:

 

 

 

 

 

 

 

Revenues

 

22,379

 

 

 

15,997

 

 

 

70,197

 

 

 

46,001

 

Expenses

 

14,014

 

 

 

11,959

 

 

 

45,914

 

 

 

31,322

 

Financial services income before income taxes

 

8,365

 

 

 

4,038

 

 

 

24,283

 

 

 

14,679

 

Income before income taxes

 

175,512

 

 

 

181,158

 

 

 

616,868

 

 

 

467,359

 

Provision for income taxes

 

(46,299

)

 

 

(46,400

)

 

 

(158,898

)

 

 

(118,164

)

Net income

 

129,213

 

 

 

134,758

 

 

 

457,970

 

 

 

349,195

 

Net (income) loss attributable to noncontrolling interests

 

 

 

 

(1,924

)

 

 

59

 

 

 

(5,493

)

Net income available to common stockholders

$

129,213

 

 

$

132,834

 

 

$

458,029

 

 

$

343,702

 

Earnings per share

 

 

 

 

 

 

 

Basic

$

1.39

 

 

$

1.38

 

 

$

4.87

 

 

$

3.48

 

Diluted

$

1.37

 

 

$

1.36

 

 

$

4.83

 

 

$

3.45

 

Weighted average shares outstanding

 

 

 

 

 

 

 

Basic

 

93,064,520

 

 

 

96,142,092

 

 

 

93,985,551

 

 

 

98,679,477

 

Diluted

 

94,413,552

 

 

 

97,438,742

 

 

 

94,912,589

 

 

 

99,695,662

 


 

MARKET DATA BY REPORTING SEGMENT & STATE
(dollars in thousands)
(unaudited)

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

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

144

 

$

709

 

133

 

$

764

 

516

 

$

723

 

630

 

$

781

California

635

 

 

775

 

870

 

 

722

 

2,242

 

 

768

 

1,986

 

 

745

Nevada

119

 

 

571

 

108

 

 

670

 

482

 

 

618

 

397

 

 

729

Washington

74

 

 

993

 

67

 

 

889

 

271

 

 

914

 

173

 

 

848

West total

972

 

 

757

 

1,178

 

 

731

 

3,511

 

 

752

 

3,186

 

 

756

Colorado

29

 

 

703

 

34

 

 

684

 

162

 

 

707

 

144

 

 

738

Texas

495

 

 

563

 

366

 

 

553

 

1,827

 

 

555

 

1,141

 

 

561

Central total

524

 

 

571

 

400

 

 

564

 

1,989

 

 

567

 

1,285

 

 

581

Carolinas(1)

158

 

 

505

 

177

 

 

466

 

684

 

 

488

 

616

 

 

458

Washington D.C. Area(2)

94

 

 

1,133

 

58

 

 

1,233

 

276

 

 

1,028

 

187

 

 

1,159

East total

252

 

 

739

 

235

 

 

655

 

960

 

 

643

 

803

 

 

621

Total

1,748

 

$

699

 

1,813

 

$

685

 

6,460

 

$

679

 

5,274

 

$

693

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

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

98

 

 

13.7

 

76

 

 

13.5

 

562

 

 

13.8

 

511

 

 

13.5

California

278

 

 

42.0

 

390

 

 

46.6

 

1,885

 

 

43.5

 

2,386

 

 

49.6

Nevada

69

 

 

8.5

 

68

 

 

11.3

 

412

 

 

8.6

 

403

 

 

9.2

Washington

45

 

 

5.8

 

62

 

 

5.3

 

281

 

 

5.6

 

228

 

 

5.4

West total

490

 

 

70.0

 

596

 

 

76.7

 

3,140

 

 

71.5

 

3,528

 

 

77.7

Colorado

25

 

 

10.0

 

24

 

 

11.0

 

129

 

 

10.5

 

142

 

 

8.4

Texas

282

 

 

49.5

 

303

 

 

54.3

 

1,578

 

 

51.1

 

1,565

 

 

43.8

Central total

307

 

 

59.5

 

327

 

 

65.3

 

1,707

 

 

61.6

 

1,707

 

 

52.2

Carolinas(1)

75

 

 

9.3

 

100

 

 

13.0

 

489

 

 

10.5

 

678

 

 

14.0

Washington D.C. Area(2)

68

 

 

8.0

 

55

 

 

4.3

 

321

 

 

6.8

 

209

 

 

3.6

East total

143

 

 

17.3

 

155

 

 

17.3

 

810

 

 

17.3

 

887

 

 

17.6

Total

940

 

 

146.8

 

1,078

 

 

159.3

 

5,657

 

 

150.4

 

6,122

 

 

147.5


 

MARKET DATA BY REPORTING SEGMENT & STATE, continued
(dollars in thousands)
(unaudited)

 

 

As of December 31, 2024

 

As of December 31, 2023

 

Backlog
Units

 

Backlog
Dollar
Value

 

Average
Sales
Price

 

Backlog
Units

 

Backlog
Dollar
Value

 

Average
Sales
Price

Arizona

305

 

$

245,417

 

$

805

 

259

 

$

190,798

 

$

737

California

341

 

 

257,199

 

 

754

 

698

 

 

559,729

 

 

802

Nevada

61

 

 

36,031

 

 

591

 

131

 

 

91,012

 

 

695

Washington

100

 

 

114,418

 

 

1,144

 

90

 

 

79,672

 

 

885

West total

807

 

 

653,065

 

 

809

 

1,178

 

 

921,211

 

 

782

Colorado

15

 

 

11,684

 

 

779

 

48

 

 

32,963

 

 

687

Texas

457

 

 

269,693

 

 

590

 

706

 

 

409,769

 

 

580

Central total

472

 

 

281,377

 

 

596

 

754

 

 

442,732

 

 

587

Carolinas(1)

87

 

 

53,168

 

 

611

 

282

 

 

140,523

 

 

498

Washington D.C. Area(2)

151

 

 

176,992

 

 

1,172

 

106

 

 

107,648

 

 

1,016

East total

238

 

 

230,160

 

 

967

 

388

 

 

248,171

 

 

640

Total

1,517

 

$

1,164,602

 

$

768

 

2,320

 

$

1,612,114

 

$

695

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,
2024

 

December 31,
2023

 

 

 

 

 

 

 

 

Lots Owned or Controlled:

 

 

 

 

 

 

 

 

 

 

 

Arizona

2,099

 

 

2,394

 

 

 

 

 

 

 

 

California

10,291

 

 

10,148

 

 

 

 

 

 

 

 

Nevada

1,437

 

 

1,785

 

 

 

 

 

 

 

 

Washington

597

 

 

712

 

 

 

 

 

 

 

 

West total

14,424

 

 

15,039

 

 

 

 

 

 

 

 

Colorado

1,561

 

 

1,908

 

 

 

 

 

 

 

 

Texas

12,711

 

 

10,056

 

 

 

 

 

 

 

 

Utah

1,006

 

 

 

 

 

 

 

 

 

 

Central total

15,278

 

 

11,964

 

 

 

 

 

 

 

 

Carolinas(1)

5,004

 

 

4,038

 

 

 

 

 

 

 

 

Florida

252

 

 

 

 

 

 

 

 

 

 

Washington D.C. Area(2)

1,532

 

 

919

 

 

 

 

 

 

 

 

East total

6,788

 

 

4,957

 

 

 

 

 

 

 

 

Total

36,490

 

 

31,960

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,
2024

 

December 31,
2023

 

 

 

 

 

 

 

 

Lots by Ownership Type:

 

 

 

 

 

 

 

 

 

 

 

Lots owned

16,609

 

 

18,739

 

 

 

 

 

 

 

 

Lots controlled (1)

19,881

 

 

13,221

 

 

 

 

 

 

 

 

Total

36,490

 

 

31,960

 

 

 

 

 

 

 

 

__________
(1)  As of December 31, 2024 and 2023, lots controlled included lots that were under land option contracts or purchase contracts. As of December 31, 2024 and 2023, lots controlled for Central include 5,816 and 3,561 lots, respectively, and lots controlled for East include 14 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 homebuilding gross margin percentage, as reported and prepared in accordance with GAAP, to the non-GAAP financial measure adjusted homebuilding gross margin percentage. We believe this information is meaningful as it isolates the impact that leverage and non-cash impairments and lot option abandonments, as applicable, have on homebuilding gross margin and permits investors to make better comparisons with our competitors, who may adjust gross margins in a similar fashion.

 

Three Months Ended December 31,

 

 

2024

 

 

%

 

 

2023

 

 

%

 

(dollars in thousands)

Home sales revenue

$

1,221,405

 

 

100.0

%

 

$

1,241,258

 

 

100.0

%

Cost of home sales

 

936,397

 

 

76.7

%

 

 

957,322

 

 

77.1

%

Homebuilding gross margin

 

285,008

 

 

23.3

%

 

 

283,936

 

 

22.9

%

Add:  interest in cost of home sales

 

41,217

 

 

3.4

%

 

 

43,516

 

 

3.5

%

Add:  impairments and lot option abandonments

 

1,713

 

 

0.1

%

 

 

1,482

 

 

0.1

%

Adjusted homebuilding gross margin

$

327,938

 

 

26.8

%

 

$

328,934

 

 

26.5

%

Homebuilding gross margin percentage

 

23.3

%

 

 

 

 

22.9

%

 

 

Adjusted homebuilding gross margin percentage

 

26.8

%

 

 

 

 

26.5

%

 

 


 

Year Ended December 31,

 

 

2024

 

 

%

 

 

2023

 

 

%

 

(dollars in thousands)

Home sales revenue

$

4,386,447

 

 

100.0

%

 

$

3,654,035

 

 

100.0

%

Cost of home sales

 

3,363,881

 

 

76.7

%

 

 

2,838,513

 

 

77.7

%

Homebuilding gross margin

 

1,022,566

 

 

23.3

%

 

 

815,522

 

 

22.3

%

Add:  interest in cost of home sales

 

148,547

 

 

3.4

%

 

 

116,143

 

 

3.2

%

Add:  impairments and lot option abandonments

 

4,157

 

 

0.1

%

 

 

14,157

 

 

0.4

%

Adjusted homebuilding gross margin

$

1,175,270

 

 

26.8

%

 

$

945,822

 

 

25.9

%

Homebuilding gross margin percentage

 

23.3

%

 

 

 

 

22.3

%

 

 

Adjusted homebuilding gross margin percentage

 

26.8

%

 

 

 

 

25.9

%

 

 


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.

 

December 31, 2024

 

December 31, 2023

Loans payable

$

270,970

 

 

$

288,337

 

Senior notes

 

646,534

 

 

 

1,094,249

 

Mortgage repurchase facilities

 

104,098

 

 

 

 

Total debt

 

1,021,602

 

 

 

1,382,586

 

Less: mortgage repurchase facilities

 

(104,098

)

 

 

 

Total homebuilding debt

 

917,504

 

 

 

1,382,586

 

Stockholders’ equity

 

3,335,710

 

 

 

3,010,958

 

Total capital

$

4,253,214

 

 

$

4,393,544

 

Ratio of homebuilding debt-to-capital(1)

 

21.6

%

 

 

31.5

%

 

 

 

 

Total homebuilding debt

$

917,504

 

 

$

1,382,586

 

Less: Cash and cash equivalents

 

(970,045

)

 

 

(868,953

)

Net homebuilding debt

 

(52,541

)

 

 

513,633

 

Stockholders’ equity

 

3,335,710

 

 

 

3,010,958

 

Net capital

$

3,283,169

 

 

$

3,524,591

 

Ratio of net homebuilding debt-to-net capital(2)

(1.6

)%

 

 

14.6

%

__________
(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) real estate inventory 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 December 31,

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(in thousands)

Net income available to common stockholders

$

129,213

 

 

$

132,834

 

 

$

458,029

 

 

$

343,702

 

Interest expense:

 

 

 

 

 

 

 

Interest incurred

 

23,162

 

 

 

35,377

 

 

 

114,949

 

 

 

147,169

 

Interest capitalized

 

(23,162

)

 

 

(35,377

)

 

 

(114,949

)

 

 

(147,169

)

Amortization of interest in cost of sales

 

41,454

 

 

 

43,737

 

 

 

150,226

 

 

 

116,933

 

Provision for income taxes

 

46,299

 

 

 

46,400

 

 

 

158,898

 

 

 

118,164

 

Depreciation and amortization

 

7,446

 

 

 

6,786

 

 

 

31,018

 

 

 

26,852

 

EBITDA

 

224,412

 

 

 

229,757

 

 

 

798,171

 

 

 

605,651

 

Amortization of stock-based compensation

 

9,182

 

 

 

4,907

 

 

 

33,509

 

 

 

19,919

 

Real estate inventory impairments and lot option abandonments

 

1,713

 

 

 

1,482

 

 

 

4,157

 

 

 

14,157

 

Adjusted EBITDA

$

235,307

 

 

$

236,146

 

 

$

835,837

 

 

$

639,727