Tri Pointe Homes, Inc. · NYSE:TPH
Tri Pointe Homes — Q3 2023 Earnings Presentation
24 slides from Tri Pointe Homes's earnings presentation, Oct 26, 2023
Slide 1: 2023 Third Quarter Results
2023 Third Quarter Results October 26, 2023
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 10 years of real estate and homebuilding experience homebuilding experience and 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: 3,176 LTM Deliveries: 3,281 LTM HS Revenue: $2,577,207 LTM ASP: $785 Lots Owned or Controlled: 16,238 E
Slide 5: 2023 Third Quarter Highlights
2023 Third Quarter Highlights 5
Slide 6: 2023 Third Quarter Highlights
2023 Third Quarter Highlights • Net new home orders up 122% and absorption rate of 3.3 net Metric 3Q23 3Q22 % Change new home orders per community per month • New home deliveries down 16% to 1,223 with an average sales Orders 1,513 681 122% price of $675,000 Deliveries 1,223 1,463 -16% • Backlog uni
Slide 7: Third Quarter Results
—VOsueS tri pointe HOMES za Quarter Results
Slide 8: Active Selling Communities and Absorption Rate
Active Selling Communities and Absorption Rate Q3 2023 Results Active Selling Communities and Absorption Rate Active Selling Communities by Geography As of and for the quarters ended September 30, 2022 and 2023 As of September 30, 2023 175 3.5 Washington 3.3 163 D.C. Area(2) 150 3.0 Washington 2% 13
Slide 9: Net New Home Orders – Q3 2023 Results
Net New Home Orders – Q3 2023 Results Net New Home Orders Net New Home Orders by Geography For the quarters ended September 30, 2022 and 2023 For the quarter ended September 30, 2023 1,600 1,513 Washington 1,400 D.C. Area(2) Washington 3% Carolinas(1) 3% 1,200 9% Colorado 1,000 Increase 122% YOY 3%
Slide 10: Backlog – Units and Dollar Value – Q3 2023 Results
Backlog – Units and Dollar Value – Q3 2023 Results Backlog – Units and Dollar Value Backlog Dollar Value by Geography As of September 30, 2022 and 2023 (dollars in thousands) As of September 30, 2023 Washington 3,500 Washington D.C. Area(2) $3,500,000 6% 3,044 3,055 2022 4% Carolinas(1) 3,000 2023 $
Slide 11: New Home Deliveries – Q3 2023 Results
New Home Deliveries – Q3 2023 Results New Home Deliveries New Home Deliveries by Geography For the quarters ended September 30, 2022 and 2023 For the quarter ended September 30, 2023 Washington 1,600 Washington D.C. Area(2) 1,463 4% 4% Carolinas(1) 1,400 10% 1,223 1,200 Colorado 1,000 1% California
Slide 12: Home Sales Revenue – Q3 2023 Results
Home Sales Revenue – Q3 2023 Results Home Sales Revenue Home Sales Revenue by Geography For the quarters ended September 30, 2022 and 2023 (dollars in thousands) For the quarter ended September 30, 2023 $1,200,000 Washington D.C. $1,057,491 Area(2) $1,000,000 Washington 8% 5% Carolinas(1) $825,295 7
Slide 13: SG&A Expenses, Income Before Taxes, Net Income and EPS
SG&A Expenses, Income Before Taxes, Net Income and EPS (Diluted) – Q3 2023 Results Selling, General and Administrative Expenses Income Before Taxes, Net Income Available to For the quarters ended September 30, 2022 and 2023 (dollars in thousands) Common Stockholders and EPS (Diluted) For the quarter
Slide 14: Land Supply, Orders by Month, Improved Return on Equity and Risk Profile
Land Supply Orders by Month Improved Return on Equity and Risk Profile Book Value Per Share Debt 14
Slide 15: Significant Land Supply to Fuel Growth
Significant Land Supply to Fuel Growth Combined Lot Position As of September 30, 2023 Note: Dollars in thousands Implied Years Geography Owned Controlled(3) Total Lots % Owned Inventory Dollars LTM Deliveries of Supply(4) Arizona 1,018 1,334 2,352 43% $274,399 763 3.1 California 9,095 2,111 11,206 8
Slide 16: Net New Home Orders – Historical by Quarter
Net New Home Orders – Historical by Quarter Full-Year Absorption Rate: 2023 – 3.9 per month (YTD) 2022 – 2.9 per month 2021 – 4.8 per month 2020 – 4.0 per month 2019 – 3.1 per month 2,500 1,987 1,912 1,933 2019 2,000 1,896 2020 1,661 1,619 1,622 1,491 1,513 2021 1,500 1,356 1,409 1,424 1,321 1,332 1
Slide 17: 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 18: Book Value Per Share
Book Value Per Share Dual impact of the 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
Slide 19: Selected Balance Sheet Metrics
Selected Balance Sheet Metrics $ in thousands 9/30/2023 12/31/2022 Cash and cash equivalents $ 849,039 $ 889,664 Real estate inventories $ 3,412,797 $ 3,173,849 Total debt $ 1,381,658 $ 1,378,051 Total stockholders’ equity $ 2,923,397 $ 2,832,389 Ratio of debt-to-capital 32.1% 32.7% Ratio of net deb
Slide 20: 2023 Fourth Quarter Outlook
2023 Fourth Quarter Outlook tri pointe HOMES
Slide 21: 2023 Fourth Quarter Outlook
2023 Fourth Quarter Outlook • Anticipate delivering between 1,600 and 1,800 homes at an average sales price between $670,000 and $680,000 for the fourth quarter • Anticipate homebuilding gross margin percentage for the fourth quarter will be in the range of 22.0% to 23.0% • Anticipate SG&A expense r
Slide 22: Supplemental Data and Reconciliation
Supplemental Data and Reconciliation 22
Slide 23: 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 24: 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