Tri Pointe Homes, Inc. · NYSE:TPH
Tri Pointe Homes — Q4 2022 Earnings Presentation
30 slides from Tri Pointe Homes's earnings presentation, Feb 21, 2023
Slide 1: 2022 Fourth Quarter Results
2022 Fourth Quarter Results February 21, 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: 2,725 LTM Deliveries: 3,900 LTM HS Revenue: $2,978,432 LTM ASP: $764 Lots Owned or Controlled: 16,761 E
Slide 5: 2022 Fourth Quarter and Full Year Highlights
2022 Fourth Quarter and Full Year Highlights 5
Slide 6: 2022 Fourth Quarter Highlights
2022 Fourth Quarter Highlights • Net new home orders down 69% and absorption rate of 1.1 Metric 4Q22 4Q21 % Change net new home orders per community per month Orders 444 1,424 -69% • New home deliveries up 7% to 2,016 with an average sales price of $746,000 Deliveries 2,016 1,885 7% • Backlog units(
Slide 7: 2022 Full Year Highlights
2022 Full Year Highlights • Net new home orders down 31% and absorption rate of Metric 2022 2021 % Change 1.1 net new home orders per community per month Orders 4,377 6,382 -31% • New home deliveries down 2% to 6,063 with an average sales price of $708,000 Deliveries 6,063 6,188 -2% • Home sales rev
Slide 8: Fourth Quarter Results
OMES pointe tri Fourth Quarter Results ~ % ae A oo:
Slide 9: Active Selling Communities and Absorption Rate
Active Selling Communities and Absorption Rate Q4 2022 Results Active Selling Communities and Absorption Rate Active Selling Communities by Geography As of and for the quarters ended December 31, 2021 and 2022 As of December 31, 2022 150 5.0 Washington 136 D.C. Area(2) 4.5 2% 125 4.3 Washington 112
Slide 10: Net New Home Orders – Q4 2022 Results
Net New Home Orders – Q4 2022 Results Net New Home Orders Net New Home Orders by Geography For the quarters ended December 31, 2021 and 2022 For the quarter ended December 31, 2022 1,600 Washington 1,424 D.C. Area(2) 1,400 Washington 9% 2% 1,200 Carolinas(1) Decrease 69% YOY 1,000 16% 800 600 Califo
Slide 11: Backlog – Units and Dollar Value – Q4 2022 Results
Backlog – Units and Dollar Value – Q4 2022 Results Backlog – Units and Dollar Value Backlog Dollar Value by Geography As of December 31, 2021 and 2022 (dollars in thousands) As of December 31, 2022 Washington 3,500 Washington D.C. Area(2) 3,158 $3,500,000 9% 2021 Decrease 53% YOY 2% 3,000 Carolinas(
Slide 12: New Home Deliveries – Q4 2022 Results
New Home Deliveries – Q4 2022 Results New Home Deliveries New Home Deliveries by Geography For the quarters ended December 31, 2021 and 2022 For the quarter ended December 31, 2022 Washington 2,500 D.C. Area(2) 4% Carolinas(1) 2,016 Washington 2,000 10% 1,885 2% 1,500 Colorado California 6% 40% Incr
Slide 13: Home Sales Revenue – Q4 2022 Results
Home Sales Revenue – Q4 2022 Results Home Sales Revenue Home Sales Revenue by Geography For the quarters ended December 31, 2021 and 2022 (dollars in thousands) For the quarter ended December 31, 2022 $1,600,000 $1,504,177 Washington D.C. $1,400,000 Area(2) Carolinas(1) Washington 6% 6% $1,200,222 2
Slide 14: SG&A Expenses, Income Before Taxes, Net Income and EPS – Q4 2022
SG&A Expenses, Income Before Taxes, Net Income and EPS (Diluted) – Q4 2022 Results Selling, General and Administrative Expenses Income Before Taxes, Net Income Available to For the quarters ended December 31, 2021 and 2022 (dollars in thousands) Common Stockholders and EPS (Diluted) For the quarters
Slide 15: Full Year Results
Full Year Results 15
Slide 16: 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, 2017 through 2022 For the year ended December 31, 2022 175 6.0 Washingto n D.C. 146 Washington 150 5.0 Area(2) 133 4.8 3% 12
Slide 17: New Home Deliveries
New Home Deliveries New Home Deliveries New Home Deliveries by State For the years ended December 31, 2017 through 2022 For the year ended December 31, 2022 Washington 7,000 Washington D.C. Area(2) 3% 6% Carolinas(1) 6,000 6,188 6% 6,063 5,000 Colorado 5,071 5,123 5% 4,921 4,697 4,000 California 42%
Slide 18: Home Sales Revenue
Home Sales Revenue Home Sales Revenue Home Sales Revenue by State For the years ended December 31, 2017 through 2022 (dollars in millions) For the year ended December 31, 2022 $5,000 Washington D.C. $4,500 Area(2) Washington 7% Carolinas(1) $4,000 $4,292 5% 4% $3,955 $3,500 Colorado 5% $3,000 $3,244
Slide 19: SG&A Expenses, Income before Taxes, Net Income and EPS (Diluted)
SG&A Expenses, Income before Taxes, Net Income and EPS (Diluted) Income Before Taxes, Net Income Available to Selling, General and Administrative Expenses Common Stockholders and EPS (Diluted) For the years ended December 31, 2017 through 2022 (dollars in thousands) For the full years ended December
Slide 20: 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 20
Slide 21: Significant Land Supply to Fuel Growth
Significant Land Supply to Fuel Growth Combined Lot Position As of December 31, 2022 Note: Dollars in thousands Implied Years Geography Owned Controlled(3) Total Lots % Owned Inventory Dollars LTM Deliveries of Supply(4) Arizona 1,229 1,672 2,901 42% $347,487 629 4.6 California 9,164 2,235 11,399 80
Slide 22: Net New Home Orders – Historical by Quarter
Net New Home Orders – Historical by Quarter Full Year Absorption Rate: 2022 – 2.9 per month 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 1,291 1,349 1,332 2
Slide 23: 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 24: 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 25: Selected Balance Sheet Metrics
Selected Balance Sheet Metrics $ in thousands 12/31/2022 12/31/2021 Cash and cash equivalents $ 889,664 $ 681,528 Real estate inventories $ 3,173,849 $ 3,054,743 Total debt $ 1,378,051 $ 1,337,723 Total stockholders’ equity $ 2,832,389 $ 2,447,621 Ratio of debt-to-capital 32.7% 35.3% Ratio of net de
Slide 26: 2023 First Quarter Outlook
2023 First Quarter Outlook tri pointe HOMES
Slide 27: First Quarter 2023 Outlook
First Quarter 2023 Outlook • Anticipate delivering between 750 and 850 homes at an average sales price between $720,000 and $730,000 for the first quarter • Anticipate homebuilding gross margin percentage for the first quarter will be in the range of 23.0% to 24.0% • Anticipate SG&A expense ratio fo
Slide 28: Supplemental Data and Reconciliation
Supplemental Data and Reconciliation 28
Slide 29: 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 30: 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