Tri Pointe Homes, Inc. · NYSE:TPH
Tri Pointe Homes — Q4 2024 Earnings Presentation
26 slides from Tri Pointe Homes's earnings presentation, Feb 18, 2025
Slide 1: 2024 Fourth Quarter Results
2024 Fourth Quarter Results February 18, 2024
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: 3,140 LTM Deliveries: 3,511 LTM HS Revenue: $2,641,125 LTM ASP: $752 Lots Owned or Controlled: 14,424 E
Slide 5: 2024 Fourth Quarter and Full Year Highlights
2024 Fourth Quarter and Full Year Highlights 5
Slide 6: 2024 Fourth Quarter Highlights
2024 Fourth Quarter Highlights • Net new home orders of 940 on an absorption rate of 2.1 net new home orders per community per month Metric 4Q24 4Q23 % Change • New home deliveries of 1,748 with an average sales price of $699,000 Orders 940 1,078 -13% • Ending active selling communities of 145 Deliv
Slide 7: 2024 Full Year Highlights
2024 Full Year Highlights • Net new home orders of 5,657 on absorption rate of 3.1 net new home orders per community per month Metric 2024 2023 % Change • New home deliveries up 22% to 6,460 with an average sales price of $679,000 Orders 5,657 6,122 -8% • Home sales revenue increased 20% to $4.4 bil
Slide 8: Fourth Quarter Results
tri pointe HOMES Fourth Quarter
Slide 9: Active Selling Communities and Absorption Rate
Active Selling Communities and Absorption Rate Q4 2024 Results Active Selling Communities and Absorption Rate Active Selling Communities by Geography As of and for the quarters ended December 31, 2023 and 2024 As of December 31, 2024 175 2.5 Washington 2.3 155 D.C. Area(2) 150 2.1 145 5% Washington
Slide 10: Net New Home Orders – Q4 2024 Results
Net New Home Orders – Q4 2024 Results Net New Home Orders Net New Home Orders by Geography For the quarters ended December 31, 2023 and 2024 For the quarter ended December 31, 2024 1,200 Washington 1,078 D.C. Area(2) 1,000 Washington 7% 940 5% Carolinas(1) 8% 800 Decrease 13% YOY California Colorado
Slide 11: Backlog – Units and Dollar Value – Q4 2024 Results
Backlog – Units and Dollar Value – Q4 2024 Results Backlog – Units and Dollar Value Backlog Dollar Value by Geography As of December 31, 2023 and 2024 (dollars in thousands) As of December 31, 2024 2,500 2023 2024 $1,800,000 Washington 2,320 $1,612,114 Washington D.C. Area(2) $1,600,000 10% 15% 2,00
Slide 12: New Home Deliveries – Q4 2024 Results
New Home Deliveries – Q4 2024 Results New Home Deliveries New Home Deliveries by Geography For the quarters ended December 31, 2023 and 2024 For the quarter ended December 31, 2024 Washington 2,000 Washington D.C. Area(2) 1,813 1,800 1,748 4% 6% Carolinas(1) 1,600 9% 1,400 Colorado 2% 1,200 Californ
Slide 13: Home Sales Revenue – Q4 2024 Results
Home Sales Revenue – Q4 2024 Results Home Sales Revenue Home Sales Revenue by Geography For the quarters ended December 31, 2023 and 2024 (dollars in thousands) For the quarter ended December 31, 2024 $1,400,000 $1,241,258 Washington D.C. $1,221,405 Area(2) $1,200,000 Washington 9% 6% Carolinas(1) $
Slide 14: SG&A Expenses, Income Before Taxes, Net Income and EPS
SG&A Expenses, Income Before Taxes, Net Income and EPS (Diluted) – Q4 2024 Results Selling, General and Administrative Expenses Income Before Taxes, Net Income Available to For the quarters ended December 31, 2023 and 2024 (dollars in thousands) Common Stockholders and EPS (Diluted) For the quarters
Slide 15: Land Supply, Orders by Month, Return on Equity and Risk Profile
Land Supply Orders by Month Return on Equity and Risk Profile Book Value Per Share Debt 15
Slide 16: Significant Land Supply to Fuel Growth
Significant Land Supply to Fuel Growth Combined Lot Position As of December 31, 2024 Note: Dollars in thousands Implied Years of Geography Owned Controlled(3) Total Lots % Owned Inventory Dollars LTM Deliveries Supply(4) Arizona 660 1,439 2,099 31% $275,616 516 4.1 California 7,582 2,709 10,291 74%
Slide 17: Net New Home Orders – Historical by Quarter
Net New Home Orders – Historical by Quarter Full-Year Absorption Rate: 2024 – 3.1 per month 2023 – 3.5 per month 2022 – 2.9 per month 2021 – 4.8 per month 2020 – 4.0 per month 2,500 1,987 1,912 1,933 2020 2,000 1,896 1,814 2021 1,661 1,651 1,619 1,622 1,513 2022 1,500 1,409 1,424 1,332 1,356 1,349 1
Slide 18: Return on Equity and Risk Profile
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 activity w
Slide 19: 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 20: Selected Balance Sheet Metrics
Selected Balance Sheet Metrics $ in thousands 12/31/2024 12/31/2023 Cash and cash equivalents $ 970,045 $ 868,953 ▪ Ended fourth quarter with total liquidity Real estate inventories $ 3,153,459 $ 3,337,483 of $1.7 billion, including cash and cash Total homebuilding debt $ 917,504 $ 1,382,586 equival
Slide 21: 2025 First Quarter & Full Year Outlook
2025 First Quarter & Full Year Outlook
Slide 22: 2025 First Quarter Outlook
2025 First Quarter Outlook • Anticipate delivering between 900 and 1,100 homes at an average sales price between $685,000 and $695,000 for the first quarter • Anticipate homebuilding gross margin percentage for the first quarter will be in the range of 22.0% to 23.0% • Anticipate SG&A expense ratio
Slide 23: 2025 Full Year Outlook
2025 Full Year Outlook • Anticipate delivering between 5,500 and 6,100 homes at an average sales price between $660,000 and $670,000 for the full year • Anticipate homebuilding gross margin percentage for the full year will be in the range of 20.5% to 22.0% • Anticipate SG&A expense ratio for the fu
Slide 24: Supplemental Data and Reconciliation
Supplemental Data and Reconciliation 24
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) (unaudited)
Reconciliation of Non-GAAP Financial Measures (cont’d) (unaudited) The following table reconciles the Company’s ratio of homebuilding debt-to-capital to the non-GAAP ratio of net homebuilding debt-to-net capital. We believe that the ratio of net homebuilding debt-to-net capital is a relevant financi