Tri Pointe Homes, Inc. · NYSE:TPH
Tri Pointe Homes — Q1 2022 Earnings Presentation
24 slides from Tri Pointe Homes's earnings presentation, Apr 21, 2022
Slide 1: 2022 First Quarter Results
2022 First Quarter Results April 21, 2022
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 9 years of real estate and and homebuilding experience homebuilding experience 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: 4,050 LTM Deliveries: 4,190 LTM HS Revenue: $2,884,195 LTM ASP: $688 Lots Owned or Controlled: 21,869 E
Slide 5: 2022 First Quarter Highlights
2022 First Quarter Highlights 5
Slide 6: 2022 First Quarter Highlights
2022 First Quarter Highlights • Net new home orders down 5% and absorption rate of 5.7 Metric 1Q22 1Q21 % Change net new home orders per community per month Orders 1,896 1,987 -5% • New home deliveries down 2% to 1,099 with an average sales price of $660,000 Deliveries 1,099 1,126 -2% • Backlog unit
Slide 7: Active Selling Communities and Absorption Rate
Active Selling Communities and Absorption Rate Q1 2022 Results Active Selling Communities and Absorption Rate Active Selling Communities by State As of and for the quarters ended March 31, 2021 and 2022 As of March 31, 2022 125 117 7.0 116 Washington 6.0 2% Maryland Virginia 5.8 5.7 100 5% 2% 5.0 Ca
Slide 8: Net New Home Orders – Q1 2022 Results
Net New Home Orders – Q1 2022 Results Net New Home Orders Net New Home Orders by State For the quarters ended March 31, 2021 and 2022 For the quarter ended March 31, 2022 2,500 Maryland Washington 3% Virginia 1,987 2% 3% 2,000 1,896 Carolinas 7% 1,500 Colorado California 7% 37% Decrease 5% YOY 1,000
Slide 9: Backlog – Units and Dollar Value – Q1 2022 Results
Backlog – Units and Dollar Value – Q1 2022 Results Backlog – Units and Dollar Value Backlog Dollar Value by State As of March 31, 2021, and 2022 (dollars in thousands) As of March 31, 2022 Maryland 4,500 Washington 3% $3,500,000 Virginia 3,955 3% 4,000 3,825 $2,929,187 4% Carolinas 2021 $3,000,000 4
Slide 10: New Home Deliveries – Q1 2022 Results
New Home Deliveries – Q1 2022 Results New Home Deliveries New Home Deliveries by State For the quarters ended March 31, 2021 and 2022 For the quarter ended March 31, 2022 Virginia 1,200 Maryland 3% 1,126 1,099 Washington 3% Carolinas 7% 2% 1,000 Colorado 800 4% Texas 600 Decrease 2% YOY 20% Californ
Slide 11: Home Sales Revenue – Q1 2022 Results
Home Sales Revenue – Q1 2022 Results Home Sales Revenue Home Sales Revenue by State For the quarters ended March 31, 2021 and 2022 (dollars in thousands) For the quarter ended March 31, 2022 $800,000 $716,675 $725,251 Washington Maryland $700,000 Virginia 10% 2% 4% Carolinas $600,000 2% Colorado $50
Slide 12: SG&A Expenses, Income Before Taxes, Net Income and EPS – Q1 2022
SG&A Expenses, Income Before Taxes, Net Income and EPS (Diluted) – Q1 2022 Results Selling, General and Administrative Expenses Income Before Taxes, Net Income and EPS (Diluted) For the quarters ended March 31, 2021 and 2022 (dollars in thousands) For the quarters ended March 31, 2021 and 2022 (doll
Slide 13: 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 13
Slide 14: Significant Land Supply to Fuel Growth
Significant Land Supply to Fuel Growth Combined Lot Position Note: Dollars in thousands As of March 31, 2022 Implied Years Market Owned Controlled(1) Total Lots % Owned Inventory Dollars LTM Deliveries of Supply(2) California 10,841 3,385 14,226 76% $1,533,106 2,665 5.3 Colorado 1,078 1,043 2,121 51
Slide 15: Net New Home Orders – Historical by Month
Net New Home Orders – Historical by Month Full Year Absorption Rate: 2022 – 5.7 per month (through Q1 2022) 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 1,409 1,424 1,321 1,343 1,291 1,3
Slide 16: 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 substantial share
Slide 17: 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 13%, respectively, si
Slide 18: Selected Balance Sheet Metrics
Selected Balance Sheet Metrics $ in thousands 3/31/2022 12/31/2021 Cash and cash equivalents $ 412,703 $ 681,528 Real estate inventories $ 3,288,347 $ 3,054,743 Total debt $ 1,338,050 $ 1,337,723 Total stockholders’ equity $ 2,408,234 $ 2,447,621 Ratio of debt-to-capital 35.7% 35.4% Ratio of net deb
Slide 19: 2022 Second Quarter and Full Year Outlook
2022 Second Quarter and Full Year Outlook
Slide 20: Second Quarter 2022 Outlook
Second Quarter 2022 Outlook • Anticipate delivering between 1,300 and 1,500 homes at an average sales price between $670,000 and $680,000 for the second quarter • Anticipate homebuilding gross margin for the second quarter will be in the range of 26.0% to 27.0% • Anticipate SG&A expense ratio for th
Slide 21: Full Year 2022 Outlook
Full Year 2022 Outlook • Anticipate delivering between 6,500 and 6,800 homes at an average sales price between $680,000 and $690,000 for the full year • Anticipate homebuilding gross margin for the full year will be in the range of 26.0% to 27.0% • Anticipate SG&A expense ratio for the full year wil
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