Tri Pointe Homes, Inc. · NYSE:TPH
Tri Pointe Homes — TRI Pointe Group — Deutsche Bank 6th Annual Global Industrials and Basic Materials Conference (June 2015)
40 slides from Tri Pointe Homes's conference presentation, Jun 3, 2015
Slide 1: Deutsche Bank 6th Annual Global Industrials and Basic Materials Conference
Deutsche Bank 6th Annual Global Industrials and Basic Materials Conference 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: Presenters
Presenters Doug Bauer Mike Grubbs Chris Martin Chief Executive Officer Chief Financial Officer VP Finance and Investor Relations • 28 years of real estate and • 28 years of real estate and • 25 years of real estate homebuilding experience homebuilding experience experience • Former President and COO
Slide 4: Family of Regional Homebuilders
• Family of Regional Homebuilders • Building in 8 States Under 6 Premium Brands in 12 Major Markets • 2015 Builder of the Year
Slide 5: Leading Brand Names Targeted to Specific Markets
Leading Brand Names Targeted to Specific Markets Markets: Orange County, Los Market: Greater Puget Sound Area Angeles, San Diego, San LTM Orders: 389 LTM Deliveries: 335 Francisco Bay Area, Denver LTM HB Revenue: $146,550 LTM ASP: $437 Markets: Washington DC, LTM Orders: 695 Lots Owned or Controlled
Slide 6: Arizona
Arizona • Founded in 1991 – acquired by WRECO in 2006 – over 7,700 homes delivered since inception • Broad range of product offerings in Phoenix and Tucson markets with appeal to affluent first-time and move-up Orders, Deliveries and Absorption Rate segments For the quarters ended March 31, 2014 and
Slide 7: Nevada
Nevada • Established in 1969 - over 30,000 homes delivered in Las Vegas • Development of master-planned communities and Orders, Deliveries and Absorption Rate merchant home building operations For the quarters ended March 31, 2014 and 2015 • Base prices range from low $200k to high $500k 120 5.0 • 2
Slide 8: California (Pardee Homes)
California • Founded in 1921 – over 68,000 homes delivered in CA and NV since 1969 • A Home for Every Buyer – diverse product portfolio of both premier SFA and SFD Homes with base prices from low Orders, Deliveries and Absorption Rate $200k to over $2.3M For the quarters ended March 31, 2014 and 201
Slide 9: Washington State
Washington State • Founded in 1959 - delivered over 15,000 homes since inception • Focus on 6 core counties in the Puget Sound area targeting premium entry level through move-up segment offering Orders, Deliveries and Absorption Rate Northwest contemporary designs with high level of customization Fo
Slide 10: Texas
Texas • Founded in 1971 – over 12,000 homes delivered since inception – acquired by WRECO in 1980 • Broad reach of product type with base prices ranging from mid $300k to mid $700k Orders, Deliveries and Absorption Rate For the quarters ended March 31, 2014 and 2015 • Affordable luxury homes built p
Slide 11: Colorado
Colorado • Established Colorado operations in 2012. • Diversified offerings targeting premium entry level through Orders, Deliveries and Absorption Rate move-up SFD products with base prices ranging from high $200k to low $600k For the quarters ended March 31, 2014 and 2015 on an adjusted basis1) •
Slide 12: California (TRI Pointe Homes)
California • Founded in 2009 with Southern California operations and established Northern California in 2011 focusing on growth markets particularly coastal California. Orders, Deliveries and Absorption Rate • Diversified premium product offering with both SFA and SFD For the quarters ended March 31
Slide 13: Maryland and Virginia
Maryland and Virginia • Founded in 1979 – over 19,000 homes delivered since inception • Your Home + Your Way – building broad product offering of Orders, Deliveries and Absorption Rate innovative and flexible home designs with base prices range For the quarters ended March 31, 2014 and 2015 from mid
Slide 14: Significant Land Supply; TRI Pointe Solutions
Significant Land Supply TRI Pointe Solutions
Slide 15: Significant Land Supply to Fuel Growth
Significant Land Supply to Fuel Growth Combined Lot Position As of March 31, 2015 Years of Market Owned Controlled Total Lots % Owned Inventory Dollars LTM Deliveries(2) Supply California 18,101 410 18,511 98% $1,416,803 1,251 14.8 Colorado 496 206 702 71% $73,588 70 10.0 Washington, D.C. (1) 2,337
Slide 16: TRI Pointe Solutions
TRI Pointe Solutions TRI Pointe Solutions – a wholly-owned subsidiary formed to provide buyer services including mortgage and title insurance related services 100% owned by TRI Pointe Solutions Title Agency arrangement in conjunction with First American Title Licensed in Texas and Maryland Anticipat
Slide 17: First Quarter 2015 Highlights
First Quarter 2015 Highlights
Slide 18: 2015 First Quarter Highlights
2015 First Quarter Highlights FIRST QUARTER HIGHLIGHTS AND COMPARISONS TO FIRST QUARTER 2014 Net income $15.3M; $0.09 per diluted share Home sale revenue up 55% to $374.3M New home orders increased 79% to 1,194 New home deliveries up 31% to 668 with increased average sales price of 18% to $560k Home
Slide 19: Active Selling Communities and Absorption Rate
Active Selling Communities and Absorption Rate Active Communities and Absorption Rate Communities by State As of and for the quarters ended March 31, 2014 and 2015 As of March 31, 2015 140 4.00 117 Washington Arizona 120 10% 26% 3.52 3.50 15% Virginia 100 7% 93 3.00 80 2.45 2.50 60 Texas 2.00 23% Ca
Slide 20: New Home Orders – First Quarter Results
New Home Orders – First Quarter Results First Quarter - New Home Orders Orders by State For the quarters ended March 31, 2014 and 2015 – GAAP and on an adjusted For the quarter ended March 31, 2015 basis(1) 1,400 1,194 1,194 1,200 Washington Arizona 13% 14% 1,000 Virginia 5% Increase 79% YOY Increas
Slide 21: New Home Deliveries – First Quarter Results
New Home Deliveries – First Quarter Results First Quarter – New Home Deliveries Deliveries by State For the quarters ended March 31, 2014 and 2015- GAAP and on an adjusted For the quarter ended March 31, 2015 basis(1) 800 Washington Arizona 700 668 668 13% 14% 600 600 Virginia 508 Increase 31% YOY I
Slide 22: Backlog – Units and Dollar Value (GAAP)
Backlog – Units and Dollar Value (“GAAP”) Backlog – Units and Dollar Value Dollar Value by State As of March 31, 2014 and 2015 (dollars in thousands) As of March 31, 2015 1800 Washington $1,000,000 Arizona $943,352 7% 1,558 7% 1600 $900,000 Virginia 2014 9% 1400 $800,000 2015 1200 $700,000 Increase
Slide 23: Backlog – Units and Dollar Value (Adjusted)
Backlog – Units and Dollar Value (“Adjusted”)(1) Backlog – Units and Dollar Value (“Adjusted”) Dollar Value by State As of and for the quarters ended March 31, 2014 and 2015 (dollars in thousands) As of March 31, 2015 1800 Washington $1,000,000 Arizona $943,352 7% 1,558 7% 1600 $900,000 Virginia 9%
Slide 24: Home Sales Revenue
Home Sales Revenue First Quarter – Home Sales Revenue Home Sales Revenue by State For the quarter ended March 31, 2014 and 2015 (dollars in thousands) For the quarter ended March 31, 2015 $500,000 Washington Arizona 12% 9% $400,000 $374,265 $374,265 Virginia 8% $314,714 GAAP Increase 55% YOY Increas
Slide 25: Selected Balance Sheet Metrics
Selected Balance Sheet Metrics Selected Balance Sheet Metrics • In May 2015, the Company $ in thousands 3/31/2015 12/31/2014 increased its unsecured revolving Cash and cash equivalents $ 106,573 $ 170,629 credit facility from $425 million Real estate inventories $ 2,409,306 $ 2,280,183 to $550 milli
Slide 26: 2015 Full Year and Second Quarter Outlook
2015 Full Year and Second Quarter Outlook
Slide 27: Re-iterate 2015 Outlook
Re-iterate 2015 Outlook Increase home deliveries by 25% over the 2014 deliveries of the combined company(1) Average sales price of homes delivered of $550,000 Expand homebuilding gross margins for the year as compared to GAAP 2014 results; delivering full year homebuilding gross margin of approximat
Slide 28: Second Quarter 2015 Update and Outlook
Second Quarter 2015 Update and Outlook New home orders up 45% for the month of April over the combined company(1) results for the comparable month a year ago Anticipate delivering approximately 50% of the 1,558 homes in backlog as of March 31, 2015 Open 16 new communities and close out of 9 communit
Slide 29: Appendix
; Pay Appendix
Slide 30: History of TRI Pointe and WRECO Transaction
History of TRI Pointe and WRECO Transaction
Slide 31: Blueprint of an IPO - Growth of the Next Generation Homebuilder
Blueprint of an IPO - Growth of the Next Generation Homebuilder 2009 2010 2011 2012 I 2013 2014 3
Slide 32: 2009-2010 – The Framework
2009-2010 – The Framework Housing Recovery + Opportunity April 2009: • TRI Pointe Homes was established in 2009 to capitalize on the unique market opportunities of the housing recovery in CA and other Southwestern markets. • Began fee building projects with The Irvine Company and Resmark Capital • F
Slide 33: 2011-2013 Rapid Expansion - Deployment of Starwood Capital
2011-2013 Rapid Expansion - Deployment of Starwood Capital TRI Pointe Homes Investment + Lot Acquisition = 14 New Communities 2000 1,903 1800 2012: 1600 Opened 1400 Colorado 1200 2011: 1000 Opened Northern 800 California 600 511 400 353 200 0 2011 2012 2013
Slide 34: January 31st, 2013 – The IPO
January 31st, 2013 – The IPO • TRI Pointe Homes, “TPH” rings the Opening Bell • The first home builder to go public since 2004 • Priced outside range at 1.7 multiple, raising $232.7 million • Initial public offering was 13,689,000 shares at $17.00 per share
Slide 35: November 2013 – The Merger Announcement
November 2013 – The Merger Announcement TRI Pointe Homes (TPH) + Weyerhaeuser Real Estate Company (WRECO) • TRI Pointe Homes (“TRI Pointe”) and Weyerhaeuser Company (“Weyerhaeuser”) entered into a definitive agreement in which Weyerhaeuser Real Estate Company (“WRECO”) was combined with TRI Pointe i
Slide 36: July 2014 – The Merger Closing
July 2014 – The Merger Closing TRI Pointe Group – Top 10 National Home Builder by Equity Market Capitalization(1) • Second largest home building merger in history. • Corporate name will be TRI Pointe Group while regional brands will be maintained. Central functions have been consolidated in Irvine,
Slide 37: Best-in-Class Executive Leadership Team
Best-in-Class Executive Leadership Team Working together for over 20 years, TRI Pointe senior management has significant experience running a large, geographically diverse, growth-oriented public homebuilder. Deep managerial talent at each operating division with key local relationships supports dyn
Slide 38: Supplemental Data and Reconciliation
Supplemental Data and Reconciliation
Slide 39: 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 40: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d)(unaudited) The merger with Weyerhaeuser Real Estate Company (“WRECO”) was accounted for as a "reverse acquisition" of TRI Pointe by WRECO in accordance with ASC Topic 805, "Business Combinations." As a result, legacy TRI Pointe's financial resul