Tri Pointe Homes, Inc. · NYSE:TPH
Tri Pointe Homes — TRI Pointe Group — Q3 2015 Earnings Presentation
31 slides from Tri Pointe Homes's earnings presentation, Nov 6, 2015
Slide 1: 2015 Third Quarter Results
2015 Third 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: A Family of Regional Homebuilders
A Family of Regional Homebuilders A Family of Regional Homebuilders Market: Greater Puget Sound Area LTM Orders: 404 LTM Deliveries: 398 LTM HB Revenue: $172,282 LTM ASP: $433 Lots Owned or Controlled: 1,422 Markets: Los Angeles/Ventura, Inland Empire, San Diego, Las Vegas LTM Orders: 1,131 LTM Deli
Slide 5: Third Quarter Highlights
Third Quarter Highlights
Slide 6: 2015 Third Quarter Highlights
2015 Third Quarter Highlights THIRD QUARTER HIGHLIGHTS AND COMPARISONS TO THIRD QUARTER 2014 • New home orders increased 24% to 996 • New home deliveries up 35% to 1,138 with increased average sales price to $564K • Home sales revenue up 36% to $642.4M • Homebuilding gross margin of 21.0% • Adjusted
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 September 30, 2014 and 2015 As of September 30, 2015 140 4.0 Washington 9% Arizona 11% 118 120 3.5 Virginia 15% 106 6% 100 3.0 2.75 80 2.5 Texas 60 2.50 20% 2.0
Slide 8: New Home Orders – Third Quarter Results
New Home Orders – Third Quarter Results Third Quarter - New Home Orders Orders by State For the quarters ended September 30, 2014 and 2015 – GAAP and on an adjusted basis(1) For the quarter ended September 30, 2015 1,200 Washington 9% Arizona 996 996 Virginia 15% 1,000 4% 803 811 800 Texas 13% Incre
Slide 9: New Home Deliveries – Third Quarter Results
New Home Deliveries – Third Quarter Results Third Quarter – New Home Deliveries Deliveries by State For the quarters ended September 30, 2014 and 2015- GAAP and on an adjusted basis(1) For the quarter ended September 30, 2015 1,200 1,138 1,138 Washington Arizona 10% 12% 1,000 Virginia 842 844 5% 800
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 September 30, 2014 and 2015 (dollars in thousands) As of September 30, 2015 2,000 1,856 Washington $1,109,867 $1,200,000 Arizona 7% 1,800 $1,100,000 Virginia 11% 5% 1,600 2014 $1,000,000 1,440 $870
Slide 11: Home Sales Revenue – Third Quarter Results
Home Sales Revenue – Third Quarter Results Third Quarter – Home Sales Revenue Home Sales Revenue by State For the quarter ended September 30, 2014 and 2015 (dollars in thousands) For the quarter ended September 30, 2015 $700,000 $642,352 $642,352 Washington Arizona $600,000 7% 8% Virginia 6% $500,00
Slide 12: Orders, Deliveries and Absorption Rate year over year comparisons by Segment
Orders, Deliveries and Absorption Rate year over year comparisons for the Third Quarter and YTD through September by Segment (Includes breakout by state for Pardee Homes and TRI Pointe Homes brands)
Slide 13: Orders, Deliveries and Absorption Rate
Orders, Deliveries and Absorption Rate Orders, Deliveries and Absorption Rate For the third quarter ended September 30, 2014 and 2015 For the nine months ended September 30, 2014 and 2015 160 150 4.0 600 4.0 140 131 495 70% 3.5 500 3.5 120 58% 3.2 2.9 3.0 400 3.0 100 94 88 313 286 307 80 2.5 300 2.5
Slide 14: Nevada
Nevada Orders, Deliveries and Absorption Rate Orders, Deliveries and Absorption Rate For the third quarter ended September 30, 2014 and 2015 For the nine months ended September 30, 2014 and 2015 120 5.0 350 5.0 6% 99 4.5 300 99 300 4.5 100 93 32% 3.9 4.0 4.0 250 238 80 228 3.5 70 3.5 3.5 3.3 200 60
Slide 15: California
California Orders, Deliveries and Absorption Rate Orders, Deliveries and Absorption Rate For the third quarter ended September 30, 2014 and 2015 For the nine months ended September 30, 2014 and 2015 250 6.0 700 654 5.8 6.0 16% 207 215 5.5 5.5 600 565 200 12% 192 490 5.0 171 4.8 5.0 486 500 4.5 4.8 4
Slide 16: Orders, Deliveries and Absorption Rate
Orders, Deliveries and Absorption Rate Orders, Deliveries and Absorption Rate For the third quarter ended September 30, 2014 and 2015 For the nine months ended September 30, 2014 and 2015 140 4.0 400 4.0 353 3.6 120 117 350 23% 3.5 3.5 286 297 300 100 6% 87 3.0 3.0 82 250 219 80 74 2.5 2.5 200 2.5 6
Slide 17: Orders, Deliveries and Absorption Rate
Orders, Deliveries and Absorption Rate Orders, Deliveries and Absorption Rate For the third quarter ended September 30, 2014 and 2015 For the nine months ended September 30, 2014 and 2015 200 3.0 500 3.0 180 450 436 (13%) 163 404 160 400 381 394 135 2.5 2.5 140 127 125 350 120 300 100 2.0 250 2.0 2.
Slide 18: Colorado
Colorado Orders, Deliveries and Absorption Rate Orders, Deliveries and Absorption Rate For the third quarter ended September 30, 2014 and 2015 on an adjusted basis(1) For the nine months ended September 30, 2014 and 2015 on an adjusted basis(1) 60 5.0 180 168 5.0 4.6 51 4.5 160 4.5 50 4.0 140 128 4.
Slide 19: California
California Orders, Deliveries and Absorption Rate Orders, Deliveries and Absorption Rate For the third quarter ended September 30, 2014 and 2015 on an adjusted basis(1) For the nine months ended September 30, 2014 and 2015 on an adjusted basis(1) 300 5.0 1,000 5.0 4.4 247 4.5 4.5 250 767 800 4.1 4.0
Slide 20: Orders, Deliveries and Absorption Rate
Orders, Deliveries and Absorption Rate Orders, Deliveries and Absorption Rate For the third quarter ended September 30, 2014 and 2015 For the nine months ended September 30, 2014 and 2015 140 4.0 350 4.0 310 23% 120 115 300 3.5 21% 109 3.5 271 104 253 253 100 250 90 3.0 3.0 80 200 2.7 2.5 2.5 2.6 60
Slide 21: 2015 Outlook
2015 Outlook
Slide 22: Fourth Quarter and Full Year 2015 Update and Outlook
Fourth Quarter and Full Year 2015 Update and Outlook • New home orders up 28% for the month of October over the Company results for the comparable month a year ago • Anticipate delivering approximately 75% to 80% of its 1,856 homes in backlog as of September 30, 2015 • Anticipate expanding homebuild
Slide 23: Significant Land Supply, Orders by Month, Debt
Significant Land Supply Orders by Month Debt
Slide 24: Significant Land Supply to Fuel Growth
Significant Land Supply to Fuel Growth Combined Lot Position As of September 30, 2015 Market Owned Controlled Total Lots % Owned Inventory Dollars LTM Deliveries Years of Supply California 17,392 547 17,939 97% $1,442,787 1,453 12.3 Colorado 405 202 607 67% $70,873 150 4.0 Washington, D.C. (1) 2,178
Slide 25: New Home Orders – Oct 2014 to Oct 2015
New Home Orders – Oct 2014 to Oct 2015 New Home Orders (October 2014 through October 2015) 500 455 457 450 415 410 400 371 367 355 350 324 318 300 274 249 252 250 213 200 150 100 50 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 2014 2015 2.38 2.42 2.00 2.96 3.67 3.91 3.47 3.82 3.05 2.91 2.97
Slide 26: Selected Balance Sheet Metrics
Selected Balance Sheet Metrics Selected Balance Sheet Metrics $ in thousands 9/30/2015 12/31/2014 Cash and cash equivalents $ 96,993 $ 170,629 • In September 2015, the Company Real estate inventories $ 2,576,402 $ 2,280,183 made a $50 million pay down on Debt $ 1,245,621 $ 1,162,179 its unsecured re
Slide 27: Supplemental Data and Reconciliation
Supplemental Data and Reconciliation
Slide 28: 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 29: 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
Slide 30: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d)(unaudited) The following schedule provides certain supplemental financial and operations information of the combined company that is “Adjusted" to include legacy TRI Pointe stand-alone operations for the nine month period ending September 30, 21
Slide 31: 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