Tri Pointe Homes, Inc. · NYSE:TPH
Tri Pointe Homes — TRI Pointe Group — Q2 2016 Earnings Presentation
26 slides from Tri Pointe Homes's earnings presentation, Jul 27, 2016
Slide 1: 2016 Second Quarter Results
2016 Second 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: 400 LTM Deliveries: 428 LTM HS Revenue: $201,933 LTM ASP: $472 Lots Owned or Controlled: 1,416 2018 Goal: 400 Annual Deliveries Markets: Los Angeles/Ventura, Inland Empire, San Diego, Las
Slide 5: 2016 Second Quarter Highlights
2016 Second Quarter Highlights
Slide 6: 2016 Second Quarter Highlights
2016 Second Quarter Highlights • Strong absorption rate of over 3.5 new home Metric 2Q 2016 2Q 2015 % Change orders per community per month Orders 1,258 1,238 2% • New home deliveries up 25% to 994 with an average sales price of $560K Deliveries 994 798 25% • Home sales revenue up 30% to $557MM ASP
Slide 7: Active Selling Communities and Absorption Rate
Active Selling Communities and Absorption Rate Active Selling Communities and Absorption Rate Communities by State As of and for the quarters ended June 30, 2015 and 2016 As of June 30, 2016 150 4.0 Washington 3.5 6% Arizona 3.5 3.5 Virginia 125 122 15% 117 6% 3.0 100 2.5 75 2.0 Texas Decrease 4% YO
Slide 8: New Home Orders – Q2 2016 Results
New Home Orders – Q2 2016 Results Second Quarter - New Home Orders Orders by State For the quarters ended June 30, 2015 and 2016 For the quarter ended June 30, 2016 Washington 1,400 7% Arizona Virginia 1,238 1,258 15% 4% 1,200 Texas 11% 1,000 Colorado 800 3% 600 Increase 2% YOY Nevada 11% 400 Califo
Slide 9: Backlog – Units and Dollar Value
Backlog – Units and Dollar Value Backlog – Units and Dollar Value Dollar Value by State As of June 30, 2015 and 2016 (dollars in thousands) As of June 30, 2016 2,500 Washington $1,400,000 Arizona 10% $1,199,847 Virginia 15% 1,998 $1,200,000 2,000 2015 5% 1,798 $1,026,219 2016 $1,000,000 Texas 1,500
Slide 10: New Home Deliveries – Q2 2016 Results
New Home Deliveries – Q2 2016 Results New Home Deliveries Deliveries by State As of and for the quarters ended June30, 2015 and 2016 For the quarter ended June 30, 2016 1,200 Washington Arizona 10% 12% 1,000 994 Virginia 4% 798 800 Texas 600 13% Increase 25% YOY 400 Colorado 5% 200 California 37% Ne
Slide 11: Home Sales Revenue – Q2 2016 Results
Home Sales Revenue – Q2 2016 Results Home Sales Revenue Home Sales Revenue by State For the quarters ended June 30, 2015 and 2016 (dollars in thousands) For the quarter ended June 30, 2016 $600,000 $556,925 Washington Arizona 10% 9% Virginia $427,238 5% $400,000 Texas 11% Increase 30% YOY Colorado $
Slide 12: SG&A Expenses – Q2 2016 Results
SG&A Expenses– Q2 2016 Results Selling General and Administrative Expenses Income before Taxes, Net Income available to For the quarters ended June 30, 2015 and 2016 Common Stockholders and EPS (Diluted) For the quarters ended June 30, 2015 and 2016 $70,000 $140,000 $0.50 $62,717 $0.46 $0.45 $60,000
Slide 13: Orders, Deliveries and Absorption Rate by Segment
Orders, Deliveries and Absorption Rate year over year comparisons for the Second Quarter 2016 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 June 30, 2015 and 2016 For the quarters ended June 30, 2015 and 2016 250 5.0 140 5.0 4.5 116 4.5 120 200 191 4.0 4.0 184 105 3.4 100 3.6 92 3.4 3.5 3.5 87 3.4 150 3.0 3.0 80 120 2.5 2.5 60 Decrease 2
Slide 15: Orders, Deliveries and Absorption Rate
Orders, Deliveries and Absorption Rate Orders, Deliveries and Absorption Rate For the quarters ended June 30, 2015 and 2016 For the quarters ended June 30, 2015 and 2016 200 2.0 140 3.5 123 180 3.0 120 3.0 160 108 1.6 1.6 1.5 140 133 100 94 2.5 124 123 126 2.2 81 120 80 2.0 100 1.0 60 1.5 80 Increas
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 June 30, 2015 and 2016 For the quarters ended June 30, 2015 and 2016 300 7.0 160 5.0 6.4 139 254 4.5 6.0 6.0 140 4.1 250 4.0 120 118 201 200 5.0 101 3.5 200 100 3.4 157 3.0 4.0 85 1
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 June 30, 2015 and 2016 For the quarters ended June 30, 2015 and 2016 400 6.0 70 4.0 346 60 350 5.0 60 3.2 3.5 305 5.0 4.9 300 50 3.0 50 44 4.0 250 2.5 40 2.3 200 3.0 33 2.0 167 30
Slide 18: 2016 Outlook
2016 Outlook
Slide 19: Third Quarter and Full Year 2016 Outlook
Third Quarter and Full Year 2016 Outlook Third Quarter • Anticipate opening 16 new communities and closing out of 12, resulting in 121 active selling communities as of September 30, 2016 • Anticipate delivering approximately 55% of the 1,798 homes in backlog as of June 30, 2016 • Anticipate homebuil
Slide 20: Land Supply, Orders by Month, Debt
Land Supply Orders by Month Debt
Slide 21: Significant Land Supply to Fuel Growth
Significant Land Supply to Fuel Growth Combined Lot Position As of June 30, 2016 Implied Years Market Owned Controlled Total Lots % Owned Inventory Dollars LTM Deliveries of Supply (1) California 16,888 392 17,280 98% $1,624,349 1,797 9.6 Colorado 505 331 836 60% $73,626 204 4.1 Washington, D.C. (2)
Slide 22: New Home Orders – 2015 vs 2016 (through June)
New Home Orders – 2015 vs 2016 (through June) 500 477 455 457 450 425 415 409 418 410 2015 400 371 2016 367 356 355 350 324 322 318 300 274 250 227 208 200 150 100 50 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2016 - 2.98 3.57 3.45 3.89 3.60 3.06 2015 - 2.96 3.67 3.91 3.47 3.82 3.05 2.91 2.97
Slide 23: Selected Balance Sheet Metrics
Selected Balance Sheet Metrics Selected Balance Sheet Metrics $ in thousands 6/30/2016 12/31/2015 • During the second quarter, the Cash and cash equivalents $ 117,509 $ 214,485 Company increased its total Real estate inventories $ 2,840,213 $ 2,519,273 commitments under our Total Debt $ 1,282,872 $
Slide 24: Supplemental Data and Reconciliation
Supplemental Data and Reconciliation
Slide 25: 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 26: 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