Tri Pointe Homes, Inc. · NYSE:TPH
Tri Pointe Homes — TRI Pointe Group — Q1 2017 Earnings Presentation
33 slides from Tri Pointe Homes's earnings presentation, Apr 26, 2017
Slide 1: 2017 First Quarter Results
2017 First Quarter Results Maracay Homes® – Pardee Homes® – Quadrant Homes® – Trendmaker® Homes – TRI Pointe Homes® – Winchester® Homes
Slide 2: Forward Looking Statement
Forward Looking Statement Various statements contained in this presentation, 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 esti
Slide 3: Management Team
Management Team Thomas Mitchell Douglas Bauer Michael Grubbs President & COO Chief Executive Officer Chief Financial Officer • Over 25 years of real estate • Over 25 years of real estate • Over 25 years of real estate and homebuilding and homebuilding experience and homebuilding experience • Former
Slide 4: A Family of Regional Homebuilders
A Family of Regional Homebuilders A Family of Regional Homebuilders Market: Greater Puget Sound Area LTM Orders: 328 LTM Deliveries: 354 LTM HS Revenue: $201,462 LTM ASP: $569 Lots Owned or Controlled: 1,800 Markets: Los Angeles/Ventura, Inland Empire, San Diego, Las Vegas LTM Orders: 1,271 LTM Deli
Slide 5: 2017 First Quarter Highlights
2017 First Quarter Highlights
Slide 6: 2017 First Quarter Highlights
2017 First Quarter Highlights • Absorption rate of 3.5 new home orders per Metric 1Q17 1Q16 % Change community per month Orders 1,299 1,149 13% • New home deliveries down 2% to 758 with an average sales price of $517K Deliveries 758 771 -2% • Home sales revenue down 7% to $392MM ASP of Deliveries ($
Slide 7: Active Selling Communities and Absorption Rate
Active Selling Communities and Absorption Rate Q1 2017 Results Active Selling Communities and Absorption Rate Active Selling Communities by State As of and for the quarters ended March 31, 2016 and 2017 As of March 31, 2017 140 4.0 Washington 125 123 Virginia 5% Arizona 3.5 3.5 14% 120 3.3 2% 3.0 10
Slide 8: New Home Orders – Q1 2017 Results
New Home Orders – Q1 2017 Results New Home Orders New Home Orders by State For the quarters ended March 31, 2016 and 2017 For the quarter ended March 31, 2017 1,400 Washington 1,299 9% Arizona Virginia 14% 1,200 1,149 4% 1,000 Texas 12% 800 Colorado 600 4% Increase 13% YOY 400 Nevada 9% California 4
Slide 9: Backlog – Units and Dollar Value – Q1 2017 Results
Backlog – Units and Dollar Value – Q1 2017 Results Backlog – Units and Dollar Value Backlog Dollar Value by State As of March 31, 2016 and 2017 (dollars in thousands) As of March 31, 2017 1,800 1,734 $1,100,000 Washington $1,014,163 Arizona 1,600 1,534 11% $1,000,000 15% $891,532 Virginia 1,400 2016
Slide 10: New Home Deliveries – Q1 2017 Results
New Home Deliveries – Q1 2017 Results New Home Deliveries New Home Deliveries by State As of and for the quarters ended March 31, 2016 and 2017 For the quarter ended March 31, 2017 900 Washington Arizona 800 771 758 Virginia 8% 16% 3% 700 600 Texas 14% 500 400 Colorado Decrease 2% YOY 300 4% 200 Nev
Slide 11: Home Sales Revenue – Q1 2017 Results
Home Sales Revenue – Q1 2017 Results Home Sales Revenue Home Sales Revenue by State For the quarters ended March 31, 2016 and 2017 (dollars in thousands) For the quarter ended March 31, 2017 $500,000 Washington $423,055 10% Arizona $400,000 $392,004 Virginia 13% 3% $300,000 Texas 13% $200,000 Colora
Slide 12: SG&A Expenses, Income before Taxes and Net Income – Q1 2017
SG&A Expenses, Income before Taxes and Net Income – Q1 2017 Results Selling General and Administrative Expenses Income before Taxes, Net Income available to For the quarters ended March 31, 2016 and 2017 (dollars in thousands) Common Stockholders and EPS (Diluted) For the quarters ended March 31, 20
Slide 13: Orders, Deliveries and Absorption Rate by Segment
Orders, Deliveries and Absorption Rate year over year comparisons for the First Quarter 2017 by Segment (Includes breakout by state for Pardee Homes and TRI Pointe Homes brands)
Slide 14: Orders, Deliveries and Absorption Rate
Orders, Deliveries and Absorption Rate Orders, Deliveries and Absorption Rate For the quarters ended March 31, 2016 and 2017 For the quarters ended March 31, 2016 and 2017 250 4.0 140 133 6.0 3.6 3.7 5.3 120 201 3.5 120 5.0 200 184 4.7 3.0 100 92 4.0 150 2.5 80 115 119 2.0 3.0 63 60 100 Decrease 32%
Slide 15: Orders, Deliveries and Absorption Rate
Orders, Deliveries and Absorption Rate Orders, Deliveries and Absorption Rate For the quarters ended March 31, 2016 and 2017 For the quarters ended March 31, 2016 and 2017 160 151 2.0 140 4.0 140 1.7 120 115 113 3.5 1.6 122 3.2 120 1.5 3.0 106 100 2.9 100 88 2.5 80 80 1.0 67 66 2.0 60 Increase 24% Y
Slide 16: California and Nevada Orders, Deliveries and Absorption Rate
California Nevada Orders, Deliveries and Absorption Rate Orders, Deliveries and Absorption Rate For the quarters ended March 31, 2016 and 2017 For the quarters ended March 31, 2016 and 2017 300 6.0 140 5.0 129 264 4.5 5.1 120 114 250 5.0 4.0 4.0 4.8 100 3.5 200 184 4.0 3.4 3.0 151 80 75 150 3.0 2.5
Slide 17: California and Colorado Orders, Deliveries and Absorption Rate
California Colorado Orders, Deliveries and Absorption Rate Orders, Deliveries and Absorption Rate For the quarters ended March 31, 2016 and 2017 For the quarters ended March 31, 2016 and 2017 300 300 4.5 60 4.0 4.1 53 4.0 3.5 3.5 250 3.6 50 222 3.5 43 3.0 2.9 38 200 3.0 40 178 2.5 163 2.5 30 150 30
Slide 18: 2014 – 2016 Historical Results with 2017 Guidance Ranges
2014 – 2016 Historical Results with 2017 Guidance Ranges
Slide 19: Average Selling Communities and Absorption Rate
Average Selling Communities and Absorption Rate Average Selling Communities and Absorption Rate Average Selling Communities by State As of and for the years ended December 31, 2014 through 2016 and 2017 projections For the year ended December 31, 2016 150 4.0 Washington 134 7% Arizona 3.5 Virginia 1
Slide 20: New Home Orders – FY 2014 through FY 2016
New Home Orders – FY 2014 through FY 2016 New Home Orders New Home Orders by State For the years ended December 31, 2014 through 2016 For the year ended December 31, 2016 5,000 4,500 4,248 Washington 4,181 8% Arizona 4,000 Virginia 16% 3,500 3% 3,000 2,947 Texas 12% 2,500 2,000 Colorado Increase 42%
Slide 21: Backlog Units – FY 2014 through FY 2016
Backlog Units – FY 2014 through FY 2016 Backlog Units Backlog Units by State For the years ended December 31, 2014 through 2016 For the year ended December 31, 2016 1,500 Washington 8% 1,193 Arizona 1,156 Virginia 21% 1,032 2% 1,000 Texas 14% Increase 12% YOY Colorado Increase 3% YOY 500 5% Nevada 8
Slide 22: New Home Deliveries – FY 2014 through FY 2016
New Home Deliveries – FY 2014 through FY 2016 New Home Deliveries New Home Deliveries by State For the years ended December 31, 2014 through 2016 and 2017 projections For the year ended December 31, 2016 Guidance Range of 5,000 4,800 Deliveries Washington Arizona 9% 15% 4,500 Virginia 4,000 4,211 4%
Slide 23: Home Sales Revenue – FY 2014 through FY 2016
Home Sales Revenue – FY 2014 through FY 2016 Home Sales Revenue Home Sales Revenue by State For the years ended December 31, 2014 through 2016 and 2017 projections For the year ended December 31, 2016 (dollars in thousands) Guidance Range of $3,000 Home Sales $2,736 Revenue Washington Arizona $2,500
Slide 24: SG&A Expenses, Income before Taxes and Net Income – FY 2014–2016
SG&A Expenses, Income before Taxes and Net Income – FY 2014 through FY 2016 Selling, General and Administrative Expenses Income before Taxes, Net Income available to For the years ended December 31, 2014 through 2016 (dollars in thousands) Common Stockholders and EPS (Diluted) For the full years end
Slide 25: 2017 Outlook
2017 Outlook & 2 ie a Jas MN ‘Diese \ > I | | Lie } | | ' a4 A 1; = | 4 at Ls | x — ee OO
Slide 26: Second Quarter and Full Year 2017 Outlook
Second Quarter and Full Year 2017 Outlook Second Quarter • Expect opening 18 new communities and closing out of 14, resulting in 127 active selling communities as of June 30, 2017 • Anticipate delivering approximately 58% of the 1,734 homes in backlog as of March 31, 2017 at an average sales price o
Slide 27: Land Supply, Orders by Month, Debt
Land Supply Orders by Month Debt
Slide 28: Significant Land Supply to Fuel Growth
Significant Land Supply to Fuel Growth Combined Lot Position As of March 31, 2017 . Note: Dollars in thousands Implied Years Market Owned Controlled Total Lots % Owned Inventory Dollars LTM Deliveries of Supply (1) California 16,543 390 16,933 98% $1,664,728 1,674 10.1 Colorado 655 229 884 74% $105,
Slide 29: New Home Orders – Historical by Month
New Home Orders – Historical by Month 1Q17 Orders up 13% YOY 500 4Q16 477 477 2015 Orders up 455 457 445 2016 21% YOY 450 415409 418 410 425 2017 400 377 371 367 356 355 346 345 350 324 322 318 306 297 300 280 274 267 250 227 208 200 150 100 50 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2017
Slide 30: Selected Balance Sheet Metrics
Selected Balance Sheet Metrics Selected Balance Sheet Metrics $ in thousands 3/31/2017 12/31/2016 Cash and cash equivalents $ 128,519 $ 208,657 • During the first quarter, the Real estate inventories $ 3,046,092 $ 2,910,627 Company borrowed $50 million Total Debt $ 1,419,914 $ 1,382,033 under its $6
Slide 31: Supplemental Data and Reconciliation
Supplemental Data and Reconciliation
Slide 32: Reconciliation of Non-GAAP Financial Measures (unaudited)
Reconciliation of Non-GAAP Financial Measures (unaudited) In this presentation, 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 manage
Slide 33: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d)(unaudited) The following table reconciles the Company’s ratio of debt-to-capital to the 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 th