Tri Pointe Homes, Inc. · NYSE:TPH
Tri Pointe Homes — TRI Pointe Group — Q1 2016 Earnings Presentation
28 slides from Tri Pointe Homes's earnings presentation, Apr 27, 2016
Slide 1: 2016 First Quarter Results
2016 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 • Over 25 years of real estate • Over 25 years of real estate • Over 25 years of real estate and homebuilding and homebuilding experience and homebuilding experience • Former
Slide 4: A Family of Regional Homebuilders
A Family of Regional Homebuilders A Family of Regional Homebuilders Market: Greater Puget Sound Area LTM Orders: 424 LTM Deliveries: 410 LTM HS Revenue: $182,914 LTM ASP: $446 Lots Owned or Controlled: 1,510 2018 Goal: 400 Annual Deliveries Markets: Los Angeles/Ventura, Inland Empire, San Diego, Las
Slide 5: 2016 First Quarter Highlights
2016 First Quarter Highlights
Slide 6: 2016 First Quarter Highlights
2016 First Quarter Highlights • Strong absorption rate of over 3.3 new Metric 1Q 2016 1Q 2015 % Change home orders per community per month Orders 1,149 1,194 -4% • New home deliveries up 15% to 771 with Deliveries 771 668 15% an average sales price of $549K • Home sales revenue up 13% to $423MM ASP
Slide 7: Active Selling Communities and Absorption Rate
Active Selling Communities and Absorption Rate Active Selling Communities and Absorption Rate Communities by State As of and for the quarters ended March 31, 2015 and 2016 As of March 31, 2016 150 4.0 Washington 3.5 9% Arizona 125 3.5 125 3.3 Virginia 16% 117 6% 3.0 100 2.5 75 2.0 Texas Increase 7%
Slide 8: New Home Orders – Q1 2016 Results
New Home Orders – Q1 2016 Results First Quarter - New Home Orders Orders by State For the quarters ended March 31, 2015 and 2016 For the quarter ended March 31, 2016 Washington 1,400 12% Arizona 17% 1,194 Virginia 1,200 1,149 4% 1,000 Texas 11% 800 Colorado Decrease 4% YOY 600 4% 400 California Neva
Slide 9: Backlog – Units and Dollar Value
Backlog – Units and Dollar Value Backlog – Units and Dollar Value Dollar Value by State As of March 31, 2015 and 2016 (dollars in thousands) As of March 31, 2016 1,800 $1,200,000 Washington Arizona 1,558 1,534 11% 1,600 14% $943,352 2015 $1,000,000 Virginia 1,400 $891,532 5% 2016 1,200 $800,000 Texa
Slide 10: New Home Deliveries – Q1 2016 Results
New Home Deliveries – Q1 2016 Results New Home Deliveries Deliveries by State As of and for the quarters ended March 31, 2015 and 2016 For the quarter ended March 31, 2016 900 Washington Arizona 800 771 12% 15% Virginia 700 668 3% 600 Texas 500 11% 400 Increase 15% YOY Colorado 300 5% 200 Nevada 100
Slide 11: Home Sales Revenue – Q1 2016 Results
Home Sales Revenue – Q1 2016 Results Home Sales Revenue Home Sales Revenue by State For the quarters ended March 31, 2015 and 2016 (dollars in thousands) For the quarter ended March 31, 2016 $500,000 Washington $423,055 Arizona 11% 11% $400,000 $374,265 Virginia 3% $300,000 Texas 10% Increase 13% YO
Slide 12: Homebuilding Gross Margins – Post WRECO transaction
Homebuilding Gross Margins – Post WRECO transaction Homebuilding Gross Margins (3Q14 through 1Q16) 25.0% 23.3% 22.2% 21.0% 19.9% 19.9% 20.0% 20.0% 18.3% 15.0% 10.0% 5.0% 0.0% 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Expanding homebuilding gross margins since the closing of the WRECO transaction 12
Slide 13: SG&A Expenses – Q1 2016 Results
SG&A Expenses– Q1 2016 Results Selling General and Administrative Expenses Income before Taxes, Net Income available to For the quarters ended March 31, 2015 and 2016 Common Stockholders and EPS (Diluted) For the quarters ended March 31, 2015 and 2016 $60,000 $50,000 $0.20 $54,717 $51,439 $44,200 $4
Slide 14: Orders, Deliveries and Absorption Rate by Segment
Orders, Deliveries and Absorption Rate year over year comparisons for the First Quarter 2016 by Segment (Includes breakout by state for Pardee Homes and TRI Pointe Homes brands)
Slide 15: Orders, Deliveries and Absorption Rate
Orders, Deliveries and Absorption Rate Orders, Deliveries and Absorption Rate For the quarters ended March 31, 2015 and 2016 For the quarters ended March 31, 2015 and 2016 250 5.0 160 150 5.0 4.7 4.9 4.5 140 133 4.5 201 200 4.0 4.0 3.6 120 161 3.5 3.5 100 93 92 150 3.2 3.0 3.0 115 2.5 80 2.5 Decreas
Slide 16: Orders, Deliveries and Absorption Rate
Orders, Deliveries and Absorption Rate Orders, Deliveries and Absorption Rate For the quarters ended March 31, 2015 and 2016 For the quarters ended March 31, 2015 and 2016 200 2.0 140 3.0 2.8 2.9 180 1.7 120 115 1.7 107 2.5 160 1.5 140 132 100 122 2.0 120 108 75 80 100 1.0 67 1.5 88 60 Decrease 11%
Slide 17: California / Nevada Orders, Deliveries and Absorption Rate
California Nevada Orders, Deliveries and Absorption Rate Orders, Deliveries and Absorption Rate For the quarters ended March 31, 2015 and 2016 For the quarters ended March 31, 2015 and 2016 250 7.0 140 5.0 129 208 6.1 4.5 6.0 120 4.0 200 184 4.0 100 4.8 5.0 100 3.7 3.5 151 150 3.0 4.0 80 114 2.5 3.0
Slide 18: California / Colorado Orders, Deliveries and Absorption Rate
California Colorado Orders, Deliveries and Absorption Rate Orders, Deliveries and Absorption Rate For the quarters ended March 31, 2015 and 2016 For the quarters ended March 31, 2015 and 2016 300 5.0 80 74 4.0 4.5 3.5 262 4.5 70 3.5 250 2.9 222 4.0 60 3.0 3.6 3.5 200 50 2.5 163 3.0 43 150 2.5 40 38
Slide 19: 2016 Outlook
2016 Outlook
Slide 20: Second Quarter 2016 Update and Outlook
Second Quarter 2016 Update and Outlook • New home orders through April 24, 2016 are up 3% as compared to the Company results for the comparable month a year ago; absorption per month per average community increased to 3.9 sequentially from 3.5 in March and 3.5 for the comparable period a year ago •
Slide 21: Full Year 2016 Update and Outlook
Full Year 2016 Update and Outlook • Expect to grow active selling communities by 20% for the full year • Anticipate delivering between 4,200 and 4,400 homes at an average sales price of $550,000 • Anticipate generating between $45 and $50 million of gross profit from land and lot sales, most of whic
Slide 22: Land Supply, Orders by Month, Debt
Land Supply Orders by Month Debt
Slide 23: Significant Land Supply to Fuel Growth
Significant Land Supply to Fuel Growth Combined Lot Position As of March 31, 2016 Market Owned Controlled Total Lots % Owned Inventory Dollars LTM Deliveries Years of Supply California 17,055 568 17,623 97% $1,531,917 1,717 10.3 Colorado 434 192 626 69% $71,813 198 3.2 Washington, D.C. (1) 1,920 360
Slide 24: New Home Orders – Jan 2015 through Current
New Home Orders – Jan 2015 through Current New Home Orders (January 2015 through April 24, 2016) 500 455 457 450 415 410 409 418 400 385 (1) 371 367 355 350 324 322 318 300 274 250 227 208 200 150 100 50 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2015 2016 2.96 3.67 3.91 3.47
Slide 25: Selected Balance Sheet Metrics
Selected Balance Sheet Metrics Selected Balance Sheet Metrics $ in thousands 3/31/2016 12/31/2015 Cash and cash equivalents $ 144,019 $ 214,485 • During the first quarter, the Real estate inventories $ 2,759,251 $ 2,519,273 Company made draws of $75 Total Debt $ 1,244,331 $ 1,170,505 million under i
Slide 26: Supplemental Data and Reconciliation
Supplemental Data and Reconciliation
Slide 27: Reconciliation of Non-GAAP Financial Measures
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 28: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d)(unaudited) The following table reconciles the Company’s ratio of debt-to-capital to the ratio of net debt-to-capital. We believe that the ratio of net debt- to-capital is a relevant financial measure for management and investors to understand th