EX-99.1 2 tph-ex991_6.htm EX-99.1 tph-ex991_6.htm

Exhibit 99.1

 

 

 

TRI POINTE GROUP, INC. REPORTS 2015 FOURTH QUARTER AND FULL YEAR RESULTS

 

-Reports Net Income of $85.1 Million, or $0.52 per Diluted Share for the Quarter-

-New Home Orders up 5% and New Home Deliveries up 30% for the Quarter-

-Homebuilding Gross Margin increase to 22.2% for the Quarter-

-Selling, General and Administrative Expenses decrease to 8.4% of Home Sales Revenue for the Quarter-

 

Irvine, California, February 26, 2016 /Business Wire/ – TRI Pointe Group, Inc. (NYSE: TPH) today announced results for the fourth quarter ended December 31, 2015 and full year 2015.

On July 7, 2014, TRI Pointe consummated the merger with Weyerhaeuser Real Estate Company (“WRECO”).  The merger was accounted for as a “reverse acquisition” of TRI Pointe by WRECO.  As a result, legacy TRI Pointe’s financial results are only included in the combined company’s financial statements from the closing date forward and are not reflected in the combined company’s historical financial statements.  Accordingly, legacy TRI Pointe’s financial results are not included in the Generally Accepted Accounting Principles (“GAAP”) results for the periods prior to July 7, 2014 included in this press release.  

Results and Operational Data for Fourth Quarter 2015 and Comparisons to Fourth Quarter 2014

 

·

Net income available to common stockholders was $85.1 million, or $0.52 per diluted share compared to $41.4 million, or $0.26 per diluted share

 

·

New home orders increased to 753 compared to 714, an increase of 5%

 

·

Active selling communities averaged 112.8 compared to 105.6

 

o

New home orders per average selling community were 6.7 orders (2.23 monthly) compared to 6.8 orders (2.25 monthly)

 

o

Cancellation rate increased to 21% compared to 17%

 

·

Backlog units increased to 1,156 homes compared to 1,032, an increase of 12%

 

o

Dollar value of backlog increased to $697.3 million compared to $653.1 million, an increase of 7%

 

o

Average sales price in backlog of $603,000 compared to $633,000, a decline of 5%

 

·

Home sales revenue of $847.4 million, an increase of 36%  

 

o

New homes deliveries of 1,453, up 30%

 

o

Average sales price of homes delivered of $583,000, up 5%

 

·

Homebuilding gross margin percentage of 22.2%

 

o

Excluding interest, impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 24.2%*

 

·

SG&A expense as a percentage of homes sales revenue improved to 8.4% compared to 8.9%

 

·

Ratios of debt and net debt to capital of 41.3% and 36.5%*, respectively, as of December 31 2015

 

·

Cash of $214.5 million and availability under unsecured revolving credit facility of $242.4 million

* See “Reconciliation of Non-GAAP Financial Measures”

Results and Operational Data for Full Year 2015 and Comparisons to Full Year 2014

 

·

Net income available to common stockholders was $205.5 million, or $1.27 per diluted share compared to $84.2 million, or $0.58 per diluted share

 

·

New home orders increased to 4,181 compared to 2,947, an increase of 42%

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·

Active selling communities averaged 115.9 compared to 99.1 

 

o

New home orders per average selling community were 36.1 orders (3.01 monthly) compared to 29.7 orders (2.48 monthly), an increase of 21%

 

o

Cancellation rate remained flat at 16%

 

·

Home sales revenue of $2.3 billion, an increase of 39%

 

o

New home deliveries of 4,057, up 31%

 

o

Average sales price of homes delivered of 565,000, up 6%

 

·

Homebuilding gross margin percentage of 21.1%

 

o

Excluding interest, impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 23.1%*

 

·

SG&A expense as a percentage of home sales revenue improved to 10.2% compared to 11.3%

* See “Reconciliation of Non-GAAP Financial Measures”

 

“2015 was a banner year for our Company”, said TRI Pointe Group Chief Executive Officer Doug Bauer.  “Revenues increased 41% versus 2014, and earnings per share more than doubled.  We also met or exceeded our stated guidance for home closings, homebuilding gross margin and SG&A leverage.  These results reflect the strides we have made since the close of the WRECO acquisition nineteen months ago and should give us a great foundation upon which to build in 2016.”

GAAP Fourth Quarter 2015 Operating Results

Net income available to common stockholders was $85.1 million, or $0.52 per diluted share in the fourth quarter of 2015, compared to net income of $41.4 million, or $0.26 per diluted share for the fourth quarter of 2014.  The improvement in net income available to common stockholders was primarily driven by an increase of $64.1 million in homebuilding gross margin due to higher home sales revenue resulting from a 30% increase in new home deliveries, offset by an increase in selling, general and administrative expenses and the provision for income taxes.

Home sales revenue increased $224.4 million or 36% to $847.4 million for the fourth quarter of 2015, as compared to $623.0 million for the same period in 2014.  The increase was attributable to a 30% increase in new home deliveries to 1,453 and a 5% increase in the Company's average sales price of homes delivered to $583,000.  New home deliveries increased at five of our six reporting segments with the highest increase at TRI Pointe Homes, which was up 203 units, or 83% compared to the prior year, while delivering at an average sales price of $696,000.

New home orders increased 5% to 753 homes for the fourth quarter of 2015, as compared to 714 homes for the same period in 2014.  Average active selling communities increased to 112.8 as compared to 105.6 for the same period in the prior year, mainly due to TRI Pointe Homes which increased average active selling communities by 5.7 in the current year. The Company’s overall quarterly absorption rate per average selling community for the fourth quarter ended December 31 2015 decreased slightly to 6.7 orders (2.23 monthly) compared to 6.8 orders (2.25 monthly) during the same period in 2014.  

The Company ended the quarter with 1,156 homes in backlog, representing approximately $697.3 million in future home sales revenue. The average sales price of homes in backlog as of December 31, 2015 decreased $30,000, or 5%, to $603,000 compared to $633,000 at December 31 2014.  

Homebuilding gross margin percentage for the fourth quarter of 2015 increased to 22.2% compared to 19.9% for the same period in 2014 and increased sequentially from 21.0% during the third quarter of 2015.  Excluding interest and impairments and lot option abandonments in cost of home sales, adjusted homebuilding gross margin percentage was 24.2%* for the fourth quarter of 2015 versus 22.0%* for the same period in 2014.  

Selling, general and administrative expense for the fourth quarter of 2015 improved to 8.4% of home sales revenue as compared to 8.9% for the same period in 2014.  The decrease in the selling, general and administrative expense ratio was primarily attributable to increased home sales revenue.  

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“Our homebuilding teams did an excellent job getting over 75% of our beginning backlog closed this quarter”, said TRI Pointe Group President and Chief Operating Officer Tom Mitchell. “Thanks to careful planning and great execution, we were able to avoid some of the construction delays that have plagued other builders and once again deliver on our stated closings guidance.  We were able to achieve this goal while also improving our gross margins and SG&A as a percentage of revenue.  In short, I am very pleased with the operational excellence our teams demonstrated in 2015 as we head into the spring selling season.”

* See “Reconciliation of Non-GAAP Financial Measures”

Outlook

For the first quarter of 2016, the Company anticipates delivering approximately 60% of its 1,156 units in backlog as of December 31, 2015.  In addition, the Company expects to open 25 new communities, and close out of 11, resulting in 118 active selling communities as of March 31, 2016.

For the full year 2016, the Company expects to grow communities by 20% and deliver between 4,200 and 4,400 homes at an average sales price of $550,000.  The Company expects its homebuilding gross margin for the full year of 2016 will be in a range of 20% to 21%, with quarterly fluctuations based on the mix of California deliveries and expects SG&A expense will be in the range of 10.3% to 10.5%.  In addition, the Company anticipates gross profit of between $45 million and $50 million from land and lot sales, most of which are expected to close in the second and third quarter of 2016.  The Company anticipates spending between $800 million and $1.0 billion in land acquisition and land development for 2016.

Earnings Conference Call

The Company will host a conference call via live webcast for investors and other interested parties beginning at 10:00 a.m. Eastern Time on Friday, February 26, 2016.  The call will be hosted by Doug Bauer, Chief Executive Officer, Tom Mitchell, Chief Operating Officer and Mike Grubbs, Chief Financial Officer.

Interested parties can listen to the call live on the internet through the Investor Relations section of the Company’s website at www.TRIPointeGroup.com. Listeners should go to the website at least 15 minutes prior to the call to download and install any necessary audio software.  The call can also be accessed by dialing 1-877-407-3982 for domestic participants or 1-201-493-6780 for international participants. Participants should ask for the TRI Pointe Group Fourth Quarter 2015 Earnings Conference Call. Those dialing in should do so at least ten minutes prior to the start. The replay of the call will be available for two weeks following the call.  To access the replay, the domestic dial-in number is 1-877-870-5176, the international dial-in number is 1-858-384-5517, and the pass code is 13628663.  An archive of the webcast will be available on the Company’s website for a limited time.

About TRI Pointe Group, Inc.

Headquartered in Irvine, California, TRI Pointe Group, Inc. (NYSE: TPH) is one of the top ten largest public homebuilders by equity market capitalization in the United States. The company designs, constructs and sells premium single-family homes through its portfolio of six quality brands across eight states, included Maracay Homes in Arizona; Pardee Homes in California and Nevada; Quadrant Homes in Washington; Trendmaker Homes in Texas; TRI Pointe Homes in California and Colorado; and Winchester Homes in Maryland and Virginia. Additional information is available at www.TRIPointeGroup.com.

Forward-Looking Statements

Various statements contained in this press release, 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 estimates concerning the timing and success of specific projects and our future production, operational and financial results, financial condition, prospects, and capital spending.  Our forward-looking statements are generally accompanied by words such as “anticipate,” “believe,” “estimate,” “goal,” “expect,” “intend,” “project,” “potential,” “plan,” “predict,”  “will,” or other words that convey future events or outcomes.  The forward-looking statements in this press release speak only as of the date of this press release, and we disclaim any obligation to update these statements unless required by law, and we caution you not to rely on them unduly.  These forward-looking statements are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control.  The following factors, among others, may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements: the effect of general economic conditions,

Page 3


 

 

including employment rates, housing starts, interest rate levels, availability of financing for home mortgages and strength of the U.S. dollar; market demand for our products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions; levels of competition; the successful execution of our internal performance plans, including restructuring and cost reduction initiatives; global economic conditions; raw material prices; oil and other energy prices; the effect of weather, including the continuing drought in California; the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other natural disasters; transportation costs; federal and state tax policies; the effect of land use, environment and other governmental regulations; legal proceedings; risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, synergies, indebtedness, financial condition, losses and future prospects; changes in accounting principles; risks related to unauthorized access to our computer systems, theft of our customers’ confidential information or other forms of cyber-attack; our relationship, and actual and potential conflicts of interest, with Starwood Capital Group or its affiliates; and additional factors discussed under the sections captioned “Risk Factors” included in our annual and quarterly reports filed with the Securities and Exchange Commission (“SEC”).  The foregoing list is not exhaustive.  New risk factors may emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risk factors on our business.

Investor Relations Contact:

Chris Martin, TRI Pointe Group

Drew Mackintosh, Mackintosh Investor Relations

InvestorRelations@TRIPointeGroup.com, 949-478-8696

Media Contact:

Carol Ruiz, cruiz@newgroundco.com, 310-437-0045

 

Page 4


 

 

KEY OPERATIONS AND FINANCIAL DATA

(dollars in thousands)

(unaudited)

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2015

 

 

 

2014

 

 

Change

 

 

 

2015

 

 

 

2014

 

 

Change

 

Operating Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home sales revenue

 

$

847,409

 

 

$

622,962

 

 

$

224,447

 

 

$

2,291,264

 

 

$

1,646,274

 

 

$

644,990

 

Homebuilding gross margin

 

$

187,824

 

 

$

123,722

 

 

$

64,102

 

 

$

482,488

 

 

$

327,657

 

 

$

154,831

 

Homebuilding gross margin %

 

 

22.2

%

 

 

19.9

%

 

 

2.3

%

 

 

21.1

%

 

 

19.9

%

 

 

1.2

%

Adjusted homebuilding gross margin %*

 

 

24.2

%

 

 

22.0

%

 

 

2.2

%

 

 

23.1

%

 

 

21.8

%

 

 

1.3

%

Land and lot gross margin

 

$

9,154

 

 

$

3,547

 

 

$

5,607

 

 

$

66,196

 

 

$

9,754

 

 

$

56,442

 

Land and lot gross margin %

 

 

34.0

%

 

 

31.6

%

 

 

2.4

%

 

 

65.4

%

 

 

20.5

%

 

 

44.9

%

SG&A expense

 

$

71,605

 

 

$

55,722

 

 

$

15,883

 

 

$

233,713

 

 

$

185,958

 

 

$

47,755

 

SG&A expense as a % of home sales

   revenue

 

 

8.4

%

 

 

8.9

%

 

 

(0.5

)%

 

 

10.2

%

 

 

11.3

%

 

 

(1.1

)%

Net income available to common

   stockholders

 

$

85,072

 

 

$

41,426

 

 

$

43,646

 

 

$

205,461

 

 

$

84,197

 

 

$

121,264

 

Adjusted EBITDA*

 

$

155,196

 

 

$

88,030

 

 

$

67,166

 

 

$

388,121

 

 

$

233,562

 

 

$

154,559

 

Interest incurred

 

$

15,185

 

 

$

15,988

 

 

$

(803

)

 

$

60,964

 

 

$

41,706

 

 

$

19,258

 

Interest expense, net of interest

   capitalized

 

$

 

 

$

 

 

$

 

 

$

 

 

$

2,731

 

 

$

(2,731

)

Interest in cost of home sales

 

$

16,759

 

 

$

12,012

 

 

$

4,747

 

 

$

44,299

 

 

$

28,354

 

 

$

15,945

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net new home orders

 

 

753

 

 

 

714

 

 

 

39

 

 

 

4,181

 

 

 

2,947

 

 

 

1,234

 

New homes delivered

 

 

1,453

 

 

 

1,122

 

 

 

331

 

 

 

4,057

 

 

 

3,100

 

 

 

957

 

Average selling price of homes delivered

 

$

583

 

 

$

555

 

 

$

28

 

 

$

565

 

 

$

531

 

 

$

34

 

Average selling communities (QTD)

 

 

112.8

 

 

 

105.6

 

 

 

7.2

 

 

N/A

 

 

N/A

 

 

N/A

 

Average selling communities (YTD)

 

N/A

 

 

N/A

 

 

N/A

 

 

 

115.9

 

 

 

99.1

 

 

 

16.8

 

Selling communities at end of period

 

 

104

 

 

 

108

 

 

 

(4

)

 

N/A

 

 

N/A

 

 

N/A

 

Cancellation rate

 

 

21

%

 

 

17

%

 

 

4

%

 

 

16

%

 

 

16

%

 

 

0

%

Backlog (estimated dollar value)

 

$

697,334

 

 

$

653,096

 

 

$

44,238

 

 

 

 

 

 

 

 

 

 

 

 

 

Backlog (homes)

 

 

1,156

 

 

 

1,032

 

 

 

124

 

 

 

 

 

 

 

 

 

 

 

 

 

Average selling price in backlog

 

$

603

 

 

$

633

 

 

$

(30

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

 

2014

 

 

Change

 

Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

$

214,485

 

 

$

170,629

 

 

$

43,856

 

Real estate inventories

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,519,273

 

 

$

2,280,183

 

 

$

239,090

 

Lots owned or controlled

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,602

 

 

 

29,718

 

 

 

(2,116

)

Homes under construction (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,280

 

 

 

1,887

 

 

 

393

 

Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,170,505

 

 

$

1,138,493

 

 

$

32,012

 

Stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,664,683

 

 

$

1,454,180

 

 

$

210,503

 

Book capitalization

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,835,188

 

 

$

2,592,673

 

 

$

242,515

 

Ratio of debt-to-capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

41.3

%

 

 

43.9

%

 

 

(2.6

)%

Ratio of net debt-to-capital*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

36.5

%

 

 

40.0

%

 

 

(3.5

)%

 

(1)

Homes under construction includes completed homes

*

See “Reconciliation of Non-GAAP Financial Measures”

Page 5


 

 

 

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

 

 

 

December 31,

 

 

December 31,

 

 

 

2015

 

 

2014

 

Assets

 

(unaudited)

 

 

 

 

 

Cash and cash equivalents

 

$

214,485

 

 

$

170,629

 

Receivables

 

 

43,710

 

 

 

20,118

 

Real estate inventories

 

 

2,519,273

 

 

 

2,280,183

 

Investments in unconsolidated entities

 

 

18,999

 

 

 

16,805

 

Goodwill and other intangible assets, net

 

 

162,029

 

 

 

162,563

 

Deferred tax assets, net

 

 

130,657

 

 

 

157,821

 

Other assets

 

 

48,918

 

 

 

81,719

 

Total assets

 

$

3,138,071

 

 

$

2,889,838

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

64,840

 

 

$

68,860

 

Accrued expenses and other liabilities

 

 

216,263

 

 

 

210,009

 

Unsecured revolving credit facility

 

 

299,392

 

 

 

260,000

 

Seller financed loans

 

 

2,434

 

 

 

14,677

 

Senior notes

 

 

868,679

 

 

 

863,816

 

Total liabilities

 

 

1,451,608

 

 

 

1,417,362

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value, 50,000,000 shares authorized;

   no shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively

 

 

 

 

 

 

Common stock, $0.01 par value, 500,000,000 shares authorized;

   161,813,750 and 161,355,490 shares issued and outstanding

   at December 31, 2015 and December 31, 2014, respectively

 

 

1,618

 

 

 

1,614

 

Additional paid-in capital

 

 

911,197

 

 

 

906,159

 

Retained earnings

 

 

751,868

 

 

 

546,407

 

Total stockholders' equity

 

 

1,664,683

 

 

 

1,454,180

 

Noncontrolling interests

 

 

21,780

 

 

 

18,296

 

Total equity

 

 

1,686,463

 

 

 

1,472,476

 

Total liabilities and equity

 

$

3,138,071

 

 

$

2,889,838

 


Page 6


 

 

CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands, except share and per share amounts)

(unaudited)

 

 

 

Three Months Ended

December 31,

 

 

Year Ended

December 31,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Homebuilding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home sales revenue

 

$

847,409

 

 

$

622,962

 

 

$

2,291,264

 

 

$

1,646,274

 

Land and lot sales revenue

 

 

26,918

 

 

 

11,211

 

 

 

101,284

 

 

 

47,660

 

Other operations

 

 

5,388

 

 

 

828

 

 

 

7,601

 

 

 

9,682

 

Total  revenues

 

 

879,715

 

 

 

635,001

 

 

 

2,400,149

 

 

 

1,703,616

 

Cost of home sales

 

 

659,492

 

 

 

497,990

 

 

 

1,807,091

 

 

 

1,316,470

 

Cost of land and lot sales

 

 

17,677

 

 

 

7,525

 

 

 

34,844

 

 

 

37,560

 

Other operations

 

 

2,656

 

 

 

586

 

 

 

4,360

 

 

 

3,324

 

Impairments and lot option abandonments

 

 

181

 

 

 

1,391

 

 

 

1,930

 

 

 

2,515

 

Sales and marketing

 

 

37,259

 

 

 

30,504

 

 

 

116,217

 

 

 

103,600

 

General and administrative

 

 

34,346

 

 

 

25,218

 

 

 

117,496

 

 

 

82,358

 

Restructuring charges

 

 

599

 

 

 

1,341

 

 

 

3,329

 

 

 

10,543

 

Homebuilding income from operations

 

 

127,505

 

 

 

70,446

 

 

 

314,882

 

 

 

147,246

 

Equity in income (loss) of unconsolidated entities

 

 

1,542

 

 

 

(59

)

 

 

1,460

 

 

 

(278

)

Transaction expenses

 

 

 

 

 

(744

)

 

 

 

 

 

(17,960

)

Other income (loss), net

 

 

586

 

 

 

(777

)

 

 

858

 

 

 

(1,019

)

Homebuilding income from continuing operations before taxes

 

 

129,633

 

 

 

68,866

 

 

 

317,200

 

 

 

127,989

 

Financial Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

528

 

 

 

 

 

 

1,010

 

 

 

 

Expenses

 

 

50

 

 

 

15

 

 

 

181

 

 

 

15

 

Equity in income (loss) of unconsolidated entities

 

 

1,233

 

 

 

(10

)

 

 

1,231

 

 

 

(10

)

Financial services income (loss) from continuing operations before taxes

 

 

1,711

 

 

 

(25

)

 

 

2,060

 

 

 

(25

)

Income from continuing operations before taxes

 

 

131,344

 

 

 

68,841

 

 

 

319,260

 

 

 

127,964

 

Provision for income taxes

 

 

(45,991

)

 

 

(27,415

)

 

 

(112,079

)

 

 

(43,767

)

Income from continuing operations

 

 

85,353

 

 

 

41,426

 

 

 

207,181

 

 

 

84,197

 

Discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

85,353

 

 

 

41,426

 

 

 

207,181

 

 

 

84,197

 

Net income attributable to noncontrolling interests

 

 

(281

)

 

 

 

 

 

(1,720

)

 

 

 

Net income available to common stockholders

 

$

85,072

 

 

$

41,426

 

 

$

205,461

 

 

$

84,197

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts attributable to TRI Pointe Group, Inc. common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

85,072

 

 

$

41,426

 

 

$

205,461

 

 

$

84,197

 

Income from discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

 

$

85,072

 

 

$

41,426

 

 

$

205,461

 

 

$

84,197

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.53

 

 

$

0.26

 

 

$

1.27

 

 

$

0.58

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share

 

$

0.53

 

 

$

0.26

 

 

$

1.27

 

 

$

0.58

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.52

 

 

$

0.26

 

 

$

1.27

 

 

$

0.58

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share

 

$

0.52

 

 

$

0.26

 

 

$

1.27

 

 

$

0.58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

161,813,750

 

 

 

161,345,594

 

 

 

161,692,152

 

 

 

145,044,351

 

Diluted

 

 

162,379,826

 

 

 

162,208,756

 

 

 

162,319,758

 

 

 

145,531,289

 

 

 

Page 7


 

 

MARKET DATA BY REPORTING SEGMENT & STATE

(dollars in thousands)

(unaudited)

 

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

Homes

 

 

Avg. Selling

 

 

Homes

 

 

Avg. Selling

 

 

Homes

 

 

Avg. Selling

 

 

Homes

 

 

Avg. Selling

 

 

 

Delivered

 

 

Price

 

 

Delivered

 

 

Price

 

 

Delivered

 

 

Price

 

 

Delivered

 

 

Price

 

New Homes Delivered:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maracay Homes

 

 

173

 

 

$

399

 

 

 

110

 

 

$

392

 

 

 

480

 

 

$

387

 

 

 

396

 

 

$

381

 

Pardee Homes

 

 

406

 

 

 

591

 

 

 

374

 

 

 

455

 

 

 

1,130

 

 

 

536

 

 

 

1,032

 

 

 

471

 

Quadrant Homes

 

 

114

 

 

 

475

 

 

 

101

 

 

 

452

 

 

 

411

 

 

 

440

 

 

 

320

 

 

 

420

 

Trendmaker Homes

 

 

145

 

 

 

511

 

 

 

157

 

 

 

504

 

 

 

539

 

 

 

511

 

 

 

561

 

 

 

496

 

TRI Pointe Homes

 

 

449

 

 

 

696

 

 

 

246

 

 

 

816

 

 

 

1,060

 

 

 

730

 

 

 

404

 

 

 

803

 

Winchester Homes

 

 

166

 

 

 

590

 

 

 

134

 

 

 

627

 

 

 

437

 

 

 

616

 

 

 

387

 

 

 

705

 

Total

 

 

1,453

 

 

$

583

 

 

 

1,122

 

 

$

555

 

 

 

4,057

 

 

$

565

 

 

 

3,100

 

 

$

531

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

Homes

 

 

Avg. Selling

 

 

Homes

 

 

Avg. Selling

 

 

Homes

 

 

Avg. Selling

 

 

Homes

 

 

Avg. Selling

 

 

 

Delivered

 

 

Price

 

 

Delivered

 

 

Price

 

 

Delivered

 

 

Price

 

 

Delivered

 

 

Price

 

New Homes Delivered:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

California

 

 

654

 

 

$

717

 

 

 

486

 

 

$

659

 

 

 

1,623

 

 

$

707

 

 

 

1,119

 

 

$

620

 

Colorado

 

 

65

 

 

 

512

 

 

 

22

 

 

 

416

 

 

 

193

 

 

 

496

 

 

 

37

 

 

 

421

 

Maryland

 

 

89

 

 

 

467

 

 

 

67

 

 

 

480

 

 

 

209

 

 

 

502

 

 

 

181

 

 

 

571

 

Virginia

 

 

77

 

 

 

732

 

 

 

67

 

 

 

773

 

 

 

228

 

 

 

720

 

 

 

206

 

 

 

823

 

Arizona

 

 

173

 

 

 

399

 

 

 

110

 

 

 

392

 

 

 

480

 

 

 

387

 

 

 

396

 

 

 

381

 

Nevada

 

 

136

 

 

 

368

 

 

 

112

 

 

 

370

 

 

 

374

 

 

 

368

 

 

 

280

 

 

 

360

 

Texas

 

 

145

 

 

 

511

 

 

 

157

 

 

 

504

 

 

 

539

 

 

 

511

 

 

 

561

 

 

 

496

 

Washington

 

 

114

 

 

 

475

 

 

 

101

 

 

 

452

 

 

 

411

 

 

 

440

 

 

 

320

 

 

 

420

 

Total

 

 

1,453

 

 

$

583

 

 

 

1,122

 

 

$

555

 

 

 

4,057

 

 

$

565

 

 

 

3,100

 

 

$

531

 

Page 8


 

 

MARKET DATA BY REPORTING SEGMENT & STATE, continued

(unaudited)

 

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

New

 

 

Average

 

 

New

 

 

Average

 

 

New

 

 

Average

 

 

New

 

 

Average

 

 

 

Home

 

 

Selling

 

 

Home

 

 

Selling

 

 

Home

 

 

Selling

 

 

Home

 

 

Selling

 

 

 

Orders

 

 

Communities

 

 

Orders

 

 

Communities

 

 

Orders

 

 

Communities

 

 

Orders

 

 

Communities

 

Net New Home Orders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maracay Homes

 

 

83

 

 

 

15.0

 

 

 

72

 

 

 

16.5

 

 

 

578

 

 

 

16.6

 

 

 

385

 

 

 

16.4

 

Pardee Homes

 

 

232

 

 

 

24.0

 

 

 

177

 

 

 

20.5

 

 

 

1,186

 

 

 

23.1

 

 

 

970

 

 

 

20.2

 

Quadrant Homes

 

 

88

 

 

 

10.5

 

 

 

51

 

 

 

10.3

 

 

 

441

 

 

 

10.7

 

 

 

337

 

 

 

12.2

 

Trendmaker Homes

 

 

76

 

 

 

22.3

 

 

 

121

 

 

 

25.5

 

 

 

457

 

 

 

25.1

 

 

 

557

 

 

 

24.0

 

TRI Pointe Homes

 

 

172

 

 

 

27.5

 

 

 

207

 

 

 

21.8

 

 

 

1,107

 

 

 

26.9

 

 

 

359

 

 

 

9.2

 

Winchester Homes

 

 

102

 

 

 

13.5

 

 

 

86

 

 

 

11.0

 

 

 

412

 

 

 

13.5

 

 

 

339

 

 

 

17.1

 

Total

 

 

753

 

 

 

112.8

 

 

 

714

 

 

 

105.6

 

 

 

4,181

 

 

 

115.9

 

 

 

2,947

 

 

 

99.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

New

 

 

Average

 

 

New

 

 

Average

 

 

New

 

 

Average

 

 

New

 

 

Average

 

 

 

Home

 

 

Selling

 

 

Home

 

 

Selling

 

 

Home

 

 

Selling

 

 

Home

 

 

Selling

 

 

 

Orders

 

 

Communities

 

 

Orders

 

 

Communities

 

 

Orders

 

 

Communities

 

 

Orders

 

 

Communities

 

Net New Home Orders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

California

 

 

285

 

 

 

34.9

 

 

 

281

 

 

 

27.5

 

 

 

1,706

 

 

 

33.5

 

 

 

967

 

 

 

19.5

 

Colorado

 

 

25

 

 

 

5.8

 

 

 

55

 

 

 

5.8

 

 

 

193

 

 

 

6.2

 

 

 

86

 

 

 

2.2

 

Maryland

 

 

68

 

 

 

6.5

 

 

 

48

 

 

 

3.8

 

 

 

233

 

 

 

6.0

 

 

 

165

 

 

 

7.2

 

Virginia

 

 

34

 

 

 

7.0

 

 

 

38

 

 

 

7.2

 

 

 

179

 

 

 

7.5

 

 

 

174

 

 

 

10.0

 

Arizona

 

 

83

 

 

 

15.0

 

 

 

72

 

 

 

16.5

 

 

 

578

 

 

 

16.6

 

 

 

385

 

 

 

16.4

 

Nevada

 

 

94

 

 

 

10.8

 

 

 

48

 

 

 

9.0

 

 

 

394

 

 

 

10.3

 

 

 

276

 

 

 

7.6

 

Texas

 

 

76

 

 

 

22.3

 

 

 

121

 

 

 

25.5

 

 

 

457

 

 

 

25.1

 

 

 

557

 

 

 

24.0

 

Washington

 

 

88

 

 

 

10.5

 

 

 

51

 

 

 

10.3

 

 

 

441

 

 

 

10.7

 

 

 

337

 

 

 

12.2

 

Total

 

 

753

 

 

 

112.8

 

 

 

714

 

 

 

105.6

 

 

 

4,181

 

 

 

115.9

 

 

 

2,947

 

 

 

99.1

 

Page 9


 

 

MARKET DATA BY REPORTING SEGMENT & STATE, continued

(dollars in thousands)

(unaudited)

 

 

 

As of December 31, 2015

 

 

As of December 31, 2014

 

 

 

 

 

 

 

Backlog

 

 

Average

 

 

 

 

 

 

Backlog

 

 

Average

 

 

 

Backlog

 

 

Dollar

 

 

Selling

 

 

Backlog

 

 

Dollar

 

 

Selling

 

 

 

Units

 

 

Value

 

 

Price

 

 

Units

 

 

Value

 

 

Price

 

Backlog:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maracay Homes

 

 

203

 

 

$

82,171

 

 

$

405

 

 

 

105

 

 

$

40,801

 

 

$

389

 

Pardee Homes

 

 

274

 

 

 

200,588

 

 

 

732

 

 

 

218

 

 

 

147,044

 

 

 

675

 

Quadrant Homes

 

 

143

 

 

 

72,249

 

 

 

505

 

 

 

113

 

 

 

51,568

 

 

 

456

 

Trendmaker Homes

 

 

136

 

 

 

72,604

 

 

 

534

 

 

 

218

 

 

 

114,948

 

 

 

527

 

TRI Pointe Homes

 

 

290

 

 

 

192,097

 

 

 

662

 

 

 

243

 

 

 

192,802

 

 

 

793

 

Winchester Homes

 

 

110

 

 

 

77,625

 

 

 

706

 

 

 

135

 

 

 

105,933

 

 

 

785

 

Total

 

 

1,156

 

 

$

697,334

 

 

$

603

 

 

 

1,032

 

 

$

653,096

 

 

$

633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2015

 

 

As of December 31, 2014

 

 

 

 

 

 

 

Backlog

 

 

Average

 

 

 

 

 

 

Backlog

 

 

Average

 

 

 

Backlog

 

 

Dollar

 

 

Selling

 

 

Backlog

 

 

Dollar

 

 

Selling

 

 

 

Units

 

 

Value

 

 

Price

 

 

Units

 

 

Value

 

 

Price

 

Backlog:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

California

 

 

401

 

 

$

321,753

 

 

$

802

 

 

 

318

 

 

$

273,263

 

 

$

859

 

Colorado

 

 

84

 

 

 

41,026

 

 

 

488

 

 

 

84

 

 

 

42,329

 

 

 

504

 

Maryland

 

 

77

 

 

 

49,760

 

 

 

646

 

 

 

53

 

 

 

37,151

 

 

 

701

 

Virginia

 

 

33

 

 

 

27,865

 

 

 

844

 

 

 

82

 

 

 

68,782

 

 

 

839

 

Arizona

 

 

203

 

 

 

82,171

 

 

 

405

 

 

 

105

 

 

 

40,801

 

 

 

389

 

Nevada

 

 

79

 

 

 

29,906

 

 

 

379

 

 

 

59

 

 

 

24,254

 

 

 

411

 

Texas

 

 

136

 

 

 

72,604

 

 

 

534

 

 

 

218

 

 

 

114,948

 

 

 

527

 

Washington

 

 

143

 

 

 

72,249

 

 

 

505

 

 

 

113

 

 

 

51,568

 

 

 

456

 

Total

 

 

1,156

 

 

$

697,334

 

 

$

603

 

 

 

1,032

 

 

$

653,096

 

 

$

633

 

Page 10


 

 

MARKET DATA BY REPORTING SEGMENT & STATE, continued

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

2014

 

Lots Owned or Controlled:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maracay Homes

 

 

 

 

 

 

 

 

 

 

1,811

 

 

 

1,985

 

Pardee Homes

 

 

 

 

 

 

 

 

 

 

16,679

 

 

 

17,639

 

Quadrant Homes

 

 

 

 

 

 

 

 

 

 

1,274

 

 

 

1,544

 

Trendmaker Homes

 

 

 

 

 

 

 

 

 

 

1,858

 

 

 

2,073

 

TRI Pointe Homes

 

 

 

 

 

 

 

 

 

 

3,628

 

 

 

3,726

 

Winchester Homes

 

 

 

 

 

 

 

 

 

 

2,352

 

 

 

2,751

 

Total

 

 

 

 

 

 

 

 

 

 

27,602

 

 

 

29,718

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

2014

 

Lots Owned or Controlled:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

California

 

 

 

 

 

 

 

 

 

 

17,527

 

 

 

18,842

 

Colorado

 

 

 

 

 

 

 

 

 

 

876

 

 

 

639

 

Maryland

 

 

 

 

 

 

 

 

 

 

1,716

 

 

 

2,048

 

Virginia

 

 

 

 

 

 

 

 

 

 

636

 

 

 

703

 

Arizona

 

 

 

 

 

 

 

 

 

 

1,811

 

 

 

1,985

 

Nevada

 

 

 

 

 

 

 

 

 

 

1,904

 

 

 

1,884

 

Texas

 

 

 

 

 

 

 

 

 

 

1,858

 

 

 

2,073

 

Washington

 

 

 

 

 

 

 

 

 

 

1,274

 

 

 

1,544

 

Total

 

 

 

 

 

 

 

 

 

 

27,602

 

 

 

29,718

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

2014

 

Lots by Ownership Type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lots owned

 

 

 

 

 

 

 

 

 

 

24,733

 

 

 

25,535

 

Lots controlled (1)

 

 

 

 

 

 

 

 

 

 

2,869

 

 

 

4,183

 

Total

 

 

 

 

 

 

 

 

 

 

27,602

 

 

 

29,718

 

 

(1)

As of December 31, 2015 and December 31, 2014, lots controlled included lots that were under land option contracts or purchase contracts.

 

 

Page 11


 

 

 

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(unaudited)

In this press release, 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 management and investors in evaluating the Company’s operating performance and financing structure. We also believe these measures facilitate the comparison of our operating performance and financing structure with other companies in our industry. Because these measures are not calculated in accordance with Generally Accepted Accounting Principles (“GAAP”), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.

The following table reconciles homebuilding gross margin percentage, as reported and prepared in accordance with GAAP, to the non-GAAP measure adjusted homebuilding gross margin percentage. We believe this information is meaningful as it isolates the impact that leverage has on homebuilding gross margin and permits investors to make better comparisons with our competitors, who adjust gross margins in a similar fashion.

 

 

 

Three Months Ended December 31,

 

 

 

2015

 

 

%

 

 

2014

 

 

%

 

 

 

(dollars in thousands)

 

Home sales revenue

 

$

847,409

 

 

 

100.0

%

 

$

622,962

 

 

 

100.0

%

Cost of home sales

 

 

659,492

 

 

 

77.8

%

 

 

497,990

 

 

 

79.9

%

Homebuilding impairments and lot option abandonments

 

 

93

 

 

 

0.0

%

 

 

1,250

 

 

 

0.2

%

Homebuilding gross margin

 

 

187,824

 

 

 

22.2

%

 

 

123,722

 

 

 

19.9

%

Add:  interest in cost of home sales

 

 

16,759

 

 

 

2.0

%

 

 

12,012

 

 

 

1.9

%

Add:  impairments and lot option abandonments

 

 

93

 

 

 

0.0

%

 

 

1,250

 

 

 

0.2

%

Adjusted homebuilding gross margin

 

$

204,676

 

 

 

24.2

%

 

$

136,984

 

 

 

22.0

%

Homebuilding gross margin percentage

 

 

22.2

%

 

 

 

 

 

 

19.9

%

 

 

 

 

Adjusted homebuilding gross margin percentage

 

 

24.2

%

 

 

 

 

 

 

22.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

2015

 

 

%

 

 

2014

 

 

%

 

 

 

(dollars in thousands)

 

Home sales revenue

 

$

2,291,264

 

 

 

100.0

%

 

$

1,646,274

 

 

 

100.0

%

Cost of home sales

 

 

1,807,091

 

 

 

78.9

%

 

 

1,316,470

 

 

 

80.0

%

Homebuilding impairments and lot option abandonments

 

 

1,685

 

 

 

0.1

%

 

 

2,147

 

 

 

0.1

%

Homebuilding gross margin

 

 

482,488

 

 

 

21.1

%

 

 

327,657

 

 

 

19.9

%

Add:  interest in cost of home sales

 

 

44,299

 

 

 

1.9

%

 

 

28,354

 

 

 

1.7

%

Add:  impairments and lot option abandonments

 

 

1,685

 

 

 

0.1

%

 

 

2,147

 

 

 

0.1

%

Adjusted homebuilding gross margin

 

$

528,472

 

 

 

23.1

%

 

$

358,158

 

 

 

21.8

%

Homebuilding gross margin percentage

 

 

21.1

%

 

 

 

 

 

 

19.9

%

 

 

 

 

Adjusted homebuilding gross margin percentage

 

 

23.1

%

 

 

 

 

 

 

21.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page 12


 

 

 

 

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)

(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 the leverage employed in our operations and as an indicator of the Company’s ability to obtain financing.

 

 

 

December 31,

 

 

December 31,

 

 

 

2015

 

 

2014

 

 

 

(dollars in thousands)

 

Unsecured revolving credit facility

 

$

299,392

 

 

$

260,000

 

Seller financed loans

 

 

2,434

 

 

 

14,677

 

Senior Notes

 

 

868,679

 

 

 

863,816

 

Total debt

 

 

1,170,505

 

 

 

1,138,493

 

Stockholders' equity

 

 

1,664,683

 

 

 

1,454,180

 

Total capital

 

$

2,835,188

 

 

$

2,592,673

 

Ratio of debt-to-capital(1)

 

 

41.3

%

 

 

43.9

%

 

 

 

 

 

 

 

 

 

Total debt

 

$

1,170,505

 

 

$

1,138,493

 

Less: Cash and cash equivalents

 

 

(214,485

)

 

 

(170,629

)

Net debt

 

 

956,020

 

 

 

967,864

 

Stockholders' equity

 

 

1,664,683

 

 

 

1,454,180

 

Total capital

 

$

2,620,703

 

 

$

2,422,044

 

Ratio of net debt-to-capital(2)

 

 

36.5

%

 

 

40.0

%

(1)

The ratio of debt-to-capital is computed as the quotient obtained by dividing debt by the sum of debt plus equity.

(2)

The ratio of net debt-to-capital is computed as the quotient obtained by dividing net debt (which is debt less cash and cash equivalents) by the sum of net debt plus equity. The most directly comparable GAAP financial measure is the ratio of debt-to-capital.

 

 

 

Page 13


 

 

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)

(unaudited)

 

The following table calculates the non-GAAP measures of EBITDA and Adjusted EBITDA and reconciles those amounts to net income, as reported and prepared in accordance with GAAP. EBITDA means net income before (a) interest expense, (b) income taxes, (c) depreciation and amortization, (d) expensing of previously capitalized interest included in costs of home sales and (e) amortization of stock-based compensation. Adjusted EBITDA means EBITDA before (f) impairment and lot option abandonments (g) restructuring charges and (h) transaction related expenses. Other companies may calculate EBITDA and Adjusted EBITDA (or similarly titled measures) differently. We believe EBITDA and Adjusted EBITDA are useful measures of the Company’s ability to service debt and obtain financing.

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2015

 

 

 

2014

 

 

 

2015

 

 

 

2014

 

 

 

(in thousands)

 

Net income available to common stockholders

 

$

85,072

 

 

$

41,426

 

 

$

205,461

 

 

$

84,197

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest incurred

 

 

15,185

 

 

 

15,988

 

 

 

60,964

 

 

 

41,706

 

Interest capitalized

 

 

(15,185

)

 

 

(15,988

)

 

 

(60,964

)

 

 

(38,975

)

Amortization of interest in cost of sales

 

 

17,095

 

 

 

12,296

 

 

 

45,114

 

 

 

52,747

 

Provision for income taxes

 

 

45,991

 

 

 

27,415

 

 

 

112,079

 

 

 

43,767

 

Depreciation and amortization

 

 

2,859

 

 

 

1,987

 

 

 

8,273

 

 

 

11,423

 

Amortization of stock-based compensation

 

 

3,399

 

 

 

1,430

 

 

 

11,935

 

 

 

7,679

 

EBITDA

 

 

154,416

 

 

 

84,554

 

 

 

382,862

 

 

 

202,544

 

Impairments and lot abandonments

 

 

181

 

 

 

1,391

 

 

 

1,930

 

 

 

2,515

 

Restructuring charges

 

 

599

 

 

 

1,341

 

 

 

3,329

 

 

 

10,543

 

Transaction expenses

 

 

 

 

 

744

 

 

 

 

 

 

17,960

 

Adjusted EBITDA

 

$

155,196

 

 

$

88,030

 

 

$

388,121

 

 

$

233,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page 14


 

 

 

SUPPLEMENTAL COMBINED COMPANY INFORMATION

(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 results are not included in the combined company’s GAAP results for any period prior to July 7, 2014, the closing date of the merger. This schedule provides certain supplemental financial and operations information of the combined company that is “Adjusted” to include legacy TRI Pointe stand-alone operations. No other adjustments have been made to the supplemental combined company information provided and this information is summary only and may not necessarily be indicative of the results had the merger occurred at the beginning of the periods presented or the financial condition to be expected for the remainder of the year or any future date or period.

The following schedule provides certain supplemental financial and operations information of the Company that is “Adjusted” to include legacy TRI Pointe stand-alone operations for the year ending December 31, 2014 as though the WRECO merger was completed on January 1, 2014.

 

 

 

Year Ended

 

 

 

December 31, 2015

 

 

December 31, 2014

 

 

 

Combined

 

 

Legacy

 

Combined

 

 

Combined

 

 

Legacy

 

 

Combined

 

 

 

Reported

 

 

Adjustments

 

Adjusted

 

 

Reported

 

 

Adjustments

 

 

Adjusted

 

Supplemental Operating Data:

 

 

 

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

Home sales revenue

 

$

2,291,264

 

 

NA

 

$

2,291,264

 

 

$

1,646,274

 

 

$

162,107

 

 

$

1,808,381

 

Net new home orders

 

 

4,181

 

 

NA

 

 

4,181

 

 

 

2,947

 

 

 

336

 

 

 

3,283

 

New homes delivered

 

 

4,057

 

 

NA

 

 

4,057

 

 

 

3,100

 

 

 

197

 

 

 

3,297

 

Average selling price of homes delivered

 

$

565

 

 

NA

 

$

565

 

 

$

531

 

 

$

823

 

 

$

548

 

 

Page 15