Tri Pointe Homes, Inc. · NYSE:TPH
Tri Pointe Homes — Q3 2022 Earnings Presentation
23 slides from Tri Pointe Homes's earnings presentation, Oct 27, 2022
Slide 1: 2022 Third Quarter Results
2022 Third Quarter Results October 27, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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, but are not limite
Slide 3: Management Team
Management Team Thomas Mitchell Douglas Bauer Glenn Keeler President & COO Chief Executive Officer Chief Financial Officer • Over 30 years of real estate • Over 30 years of real estate and • Over 9 years of real estate and and homebuilding experience homebuilding experience homebuilding experience •
Slide 4: A diversified portfolio of markets
A diversified portfolio of markets West Segment Markets: San Francisco Bay Area, Inland Empire, Orange County-Los Angeles, Sacramento, San Diego, Phoenix, Las Vegas, Seattle Metro Area LTM Orders: 3,361 LTM Deliveries: 3,809 LTM HS Revenue: $2,755,994 LTM ASP: $723 Lots Owned or Controlled: 18,924 E
Slide 5: 2022 Third Quarter Highlights
2022 Third Quarter Highlights 5
Slide 6: 2022 Third Quarter Highlights
2022 Third Quarter Highlights • Net new home orders down 50% and absorption rate of 1.8 Metric 3Q22 3Q21 % Change net new home orders per community per month Orders 681 1,349 -50% • New home deliveries down 10% to 1,463 with an average sales price of $723,000 Deliveries 1,463 1,632 -10% • Backlog un
Slide 7: Active Selling Communities and Absorption Rate
Active Selling Communities and Absorption Rate Q3 2022 Results Active Selling Communities and Absorption Rate Active Selling Communities by Geography As of and for the quarters ended September 30, 2021 and 2022 As of September 30, 2022 150 4.5 Washington 133 D.C. Area(2) 4.1 4.0 4% 125 Washington 10
Slide 8: Net New Home Orders – Q3 2022 Results
Net New Home Orders – Q3 2022 Results Net New Home Orders Net New Home Orders by Geography For the quarters ended September 30, 2021 and 2022 For the quarter ended September 30, 2022 1,600 Washington D.C. Area(2) 1,400 1,349 4% Washington Carolinas(1) 5% 11% 1,200 1,000 Colorado 2% 800 681 Californi
Slide 9: Backlog – Units and Dollar Value – Q3 2022 Results
Backlog – Units and Dollar Value – Q3 2022 Results Backlog – Units and Dollar Value Backlog Dollar Value by Geography As of September 30, 2021 and 2022 (dollars in thousands) As of September 30, 2022 Washington 4,000 D.C. Area(2) 3,619 $3,500,000 Washington 6% Carolinas(1) 2021 3,500 2% 7% 3,044 202
Slide 10: New Home Deliveries – Q3 2022 Results
New Home Deliveries – Q3 2022 Results New Home Deliveries New Home Deliveries by Geography For the quarters ended September 30, 2021 and 2022 For the quarter ended September 30, 2022 Washington 1,800 D.C. Area(2) 1,632 6% 1,600 Carolinas(1) 1,463 Washington 5% 1,400 3% Colorado 1,200 6% 1,000 Decrea
Slide 11: Home Sales Revenue – Q3 2022 Results
Home Sales Revenue – Q3 2022 Results Home Sales Revenue Home Sales Revenue by Geography For the quarters ended September 30, 2021 and 2022 (dollars in thousands) For the quarter ended September 30, 2022 $1,200,000 $1,057,491 Washington D.C. $1,028,950 Area(2) Washington Carolinas(1) $1,000,000 6% 4%
Slide 12: SG&A Expenses, Income Before Taxes, Net Income and EPS – Q3 2022
SG&A Expenses, Income Before Taxes, Net Income and EPS (Diluted) – Q3 2022 Results Selling, General and Administrative Expenses Income Before Taxes, Net Income Available to For the quarters ended September 30, 2021 and 2022 (dollars in thousands) Common Stockholders and EPS (Diluted) For the quarter
Slide 13: Land Supply, Orders by Month, Selected Financial and Operational Data
Land Supply Orders by Month Selected Financial and Operational Data Improved Return on Equity and Risk Profile Book Value Per Share Debt 13
Slide 14: Significant Land Supply to Fuel Growth
Significant Land Supply to Fuel Growth Combined Lot Position As of September 30, 2022 Note: Dollars in thousands Implied Years Geography Owned Controlled(3) Total Lots % Owned Inventory Dollars LTM Deliveries of Supply(4) Arizona 1,495 1,860 3,355 45% $404,798 581 5.8 California 10,154 2,709 12,863
Slide 15: Net New Home Orders – Historical by Quarter
Net New Home Orders – Historical by Quarter Full Year Absorption Rate: 2022 – 3.6 per month (through Q3 2022) 2021 – 4.8 per month 2020 – 4.0 per month 2019 – 3.1 per month 2018 – 3.0 per month 2,500 1,987 1,933 2018 2,000 1,896 2019 1,661 1,622 1,496 1,491 2020 1,500 1,356 1,409 1,424 1,321 1,343 1
Slide 16: Improved Return on Equity and Risk Profile
Improved Return on Equity and Risk Profile Increased focus on generating strong return on equity (ROE) growth through a combination of improved asset efficiency and greater operating margins with a continued focus on maintaining an efficient capital structure. Measured approach to share repurchase a
Slide 17: Book Value Per Share
Book Value Per Share Dual impact of reduction in shares of common stock outstanding through opportunistic share repurchases and strong earnings have contributed to accelerated growth in book value per share and tangible book value per share at a compounded annual growth rate of 15%, respectively, si
Slide 18: Selected Balance Sheet Metrics
Selected Balance Sheet Metrics $ in thousands 9/30/2022 12/31/2021 Cash and cash equivalents $ 228,137 $ 681,528 Real estate inventories $ 3,608,305 $ 3,054,743 Total debt $ 1,339,752 $ 1,337,723 Total stockholders’ equity $ 2,625,730 $ 2,447,621 Ratio of debt-to-capital 33.8% 35.3% Ratio of net deb
Slide 19: 2022 Fourth Quarter Outlook
2022 Fourth Quarter Outlook tri pointe HOMES
Slide 20: Fourth Quarter 2022 Outlook
Fourth Quarter 2022 Outlook • Anticipate delivering between 1,700 and 1,900 homes at an average sales price between $700,000 and $715,000 for the fourth quarter • Anticipate homebuilding gross margin for the fourth quarter will be in the range of 25.0% to 26.0% • Anticipate SG&A expense ratio for th
Slide 21: Supplemental Data and Reconciliation
Supplemental Data and Reconciliation 21
Slide 22: 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 23: Reconciliation of Non-GAAP Financial Measures (cont’d) (unaudited)
Reconciliation of Non-GAAP Financial Measures (cont’d) (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