Tri Pointe Homes, Inc. · NYSE:TPH
Tri Pointe Homes — Q1 2015 Earnings Presentation
22 slides from Tri Pointe Homes's earnings presentation, May 8, 2015
Slide 1: 2015 First Quarter Results
2015 First 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 • 28 years of real estate and • 28 years of real estate and • 28 years of real estate and homebuilding experience homebuilding experience homebuilding experience • Former EVP
Slide 4: Leading Brand Names Targeted to Specific Markets
Leading Brand Names Targeted to Specific Markets Markets: Orange County, Los Market: Greater Puget Sound Area Angeles, San Diego, San LTM Orders: 389 LTM Deliveries: 335 Francisco Bay Area, Denver LTM HB Revenue: $146,550 LTM ASP: $437 Markets: Washington DC, LTM Orders: 695 Lots Owned or Controlled
Slide 5: First Quarter Highlights
First Quarter Highlights
Slide 6: 2015 First Quarter Highlights
2015 First Quarter Highlights FIRST QUARTER HIGHLIGHTS AND COMPARISONS TO FIRST QUARTER 2014 Net income $15.3M; $0.09 per diluted share Home sale revenue up 55% to $374.3M New home orders increased 79% to 1,194 New home deliveries up 31% to 668 with increased average sales price of 18% to $560k Home
Slide 7: Active Selling Communities and Absorption Rate
Active Selling Communities and Absorption Rate Active Communities and Absorption Rate Communities by State As of and for the quarters ended March 31, 2014 and 2015 As of March 31, 2015 140 4.0 117 Washington Arizona 120 10% 26% 3.52 3.5 15% Virginia 100 7% 93 3.0 80 2.45 2.5 60 Texas 2.0 23% Califor
Slide 8: New Home Orders – First Quarter Results
New Home Orders – First Quarter Results First Quarter - New Home Orders Orders by State For the quarters ended March 31, 2014 and 2015 – GAAP and on an adjusted For the quarter ended March 31, 2015 basis(1) 1,400 1,194 1,194 1,200 Washington Arizona 13% 14% 1,000 Virginia 5% Increase 79% YOY Increas
Slide 9: New Home Deliveries – First Quarter Results
New Home Deliveries – First Quarter Results First Quarter – New Home Deliveries Deliveries by State For the quarters ended March 31, 2014 and 2015- GAAP and on an adjusted For the quarter ended March 31, 2015 basis(1) 800 Washington Arizona 700 668 668 13% 14% 600 600 Virginia 508 Increase 31% YOY I
Slide 10: Backlog – Units and Dollar Value (GAAP)
Backlog – Units and Dollar Value (“GAAP”) Backlog – Units and Dollar Value Dollar Value by State As of March 31, 2014 and 2015 (dollars in thousands) As of March 31, 2015 1800 Washington $1,000,000 Arizona $943,352 7% 1,558 7% 1600 $900,000 Virginia 2014 9% 1400 $800,000 2015 1200 $700,000 Increase
Slide 11: Backlog – Units and Dollar Value (Adjusted)
Backlog – Units and Dollar Value (“Adjusted”)(1) Backlog – Units and Dollar Value (“Adjusted”) Dollar Value by State As of and for the quarters ended March 31, 2014 and 2015 (dollars in thousands) As of March 31, 2015 1800 Washington $1,000,000 Arizona $943,352 7% 1,558 7% 1600 $900,000 Virginia 9%
Slide 12: Home Sales Revenue
Home Sales Revenue First Quarter – Home Sales Revenue Home Sales Revenue by State For the quarter ended March 31, 2014 and 2015 (dollars in thousands) For the quarter ended March 31, 2015 $500,000 Washington Arizona 12% 9% $400,000 $374,265 $374,265 Virginia 8% $314,714 GAAP Increase 55% YOY Increas
Slide 13: 2015 Outlook
2015 Outlook
Slide 14: Re-iterate 2015 Outlook
Re-iterate 2015 Outlook Increase home deliveries by 25% over the 2014 deliveries of the combined company(1) Average sales price of homes delivered of $550,000 Expand homebuilding gross margins for the year as compared to GAAP 2014 results; delivering full year homebuilding gross margin of approximat
Slide 15: Second Quarter 2015 Update and Outlook
Second Quarter 2015 Update and Outlook New home orders up 45% for the month of April over the combined company(1) results for the comparable month a year ago Anticipate delivering approximately 50% of the 1,558 homes in backlog as of March 31, 2015 Open 16 new communities and close out of 9 communit
Slide 16: Additional Information
/ hy fy TRIPOINTE Additional Information
Slide 17: New Home Orders – July 2014 – April 2015
New Home Orders – July 2014 – April 2015 New Home Orders (July 2014 through April 2015) 500 455 450 415 410 400 350 324 296 300 255 252 249 252 250 213 200 150 100 50 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2014 2015 2.52 2.85 2.38 2.38 2.42 2.00 2.96 3.67 3.91 3.47 Absorption Rate = Orders per Mo
Slide 18: Significant Land Supply to Fuel Growth
Significant Land Supply to Fuel Growth Combined Lot Position As of March 31, 2015 Years of Market Owned Controlled Total Lots % Owned Inventory Dollars LTM Deliveries(2) Supply California 18,101 410 18,511 98% $1,416,803 1,251 14.8 Colorado 496 206 702 71% $73,588 70 10.0 Washington, D.C. (1) 2,337
Slide 19: TRI Pointe Solutions
TRI Pointe Solutions TRI Pointe Solutions – a wholly-owned subsidiary formed to provide buyer services including mortgage and title insurance related services 100% owned by TRI Pointe Solutions Title Agency arrangement in conjunction with First American Title Licensed in Texas Anticipate licensing i
Slide 20: Supplemental Data and Reconciliation
Supplemental Data and Reconciliation
Slide 21: 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 22: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d)(unaudited) The merger with Weyerhaeuser Real Estate Company (“WRECO”) was accounted for as a "reverse acquisition" of TRI Pointe by WRECO in accordance with ASC Topic 805, "Business Combinations." As a result, legacy TRI Pointe's financial resul