0001561680false00015616802024-07-252024-07-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________________________________________________
FORM 8-K
_______________________________________________________________________________________ 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 25, 2024
_______________________________________________________________________________________
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Tri Pointe Homes, Inc.
(Exact name of registrant as specified in its charter)
_______________________________________________________________________________________
Delaware 1-35796 61-1763235
(State or other jurisdiction
of incorporation)		 (Commission
File Number)		 (IRS Employer
Identification No.)
 
940 Southwood Blvd, Suite 200
Incline Village, Nevada 89451
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (775) 413-1030
Not Applicable
(Former name or former address, if changed since last report.)
_______________________________________________________________________________________ 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareTPHNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02     Results of Operations and Financial Condition
On July 25, 2024, Tri Pointe Homes, Inc., a Delaware corporation (the “Company”), announced in a press release its financial results for the quarter ended June 30, 2024. A copy of the Company’s press release announcing these financial results is attached as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished pursuant to this Item 2.02, including the exhibits attached hereto, shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into any filings under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth in such filing. In addition, the press release furnished as an exhibit to this report includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.

Item 9.01     Financial Statements and Exhibits

(d)Exhibits
99.1          Press Release dated July 25, 2024
104           Cover Page Interactive Data File, formatted in Inline XBRL


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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 Tri Pointe Homes, Inc.
   
Date: July 25, 2024By:/s/ Glenn J. Keeler
  Glenn J. Keeler,
Chief Financial Officer

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Exhibit 99.1
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TRI POINTE HOMES, INC. REPORTS 2024 SECOND QUARTER RESULTS

-Home Sales Revenue of $1.1 Billion-
-Homebuilding Gross Margin Percentage of 23.6%-
-Diluted Earnings Per Share of $1.25-
-Increased Dollar Value of Backlog to $2.0 Billion-
-Reduced Debt by $450 Million-
-Homebuilding Debt-to-Capital Ratio Reduced to Record Low of 22.9%-

INCLINE VILLAGE, Nev., July 25, 2024 / Tri Pointe Homes, Inc. (the “Company”) (NYSE:TPH) today announced results for the second quarter ended June 30, 2024.
“I am pleased to report another quarter of outstanding results, driven by our focus on expanding scale and efficiencies within our existing markets while building a foundation for future growth in our new markets,” said Doug Bauer, Tri Pointe Homes Chief Executive Officer. “We delivered 1,700 homes, resulting in home sales revenue of $1.1 billion, a 38% increase compared to the previous year. This strong revenue growth, fueled by the 45% increase in deliveries, resulted in net income of $118 million and diluted earnings per share of $1.25, increases of 94% and 108%, respectively, compared to the previous year.”
Mr. Bauer continued, “As we continue to build scale across our markets, and due to the strong demand and pricing power we have experienced in recent quarters, our homebuilding gross margin percentage increased 320 basis points year-over-year to 23.6%. Additionally, during the quarter, we redeemed $450 million of senior notes using cash on hand, which allowed us to reduce balance sheet debt and lower our homebuilding debt-to-capital ratio to a record low 22.9%, while maintaining strong liquidity of $1.2 billion, underscoring our commitment to fortifying our balance sheet.”
“Our organic start-up divisions in the Coastal Carolinas, Florida, and Utah are off to a strong start as we continue to attract talent and build land relationships in advance of our first deliveries,” said Tri Pointe Homes President and Chief Operating Officer, Tom Mitchell. “While we acknowledge that realizing the full value of our organic growth will require both capital investment and time, our cash flows continue to support this expansion and we see the benefits of geographic diversification. With ongoing demographic support and a persistent undersupply of homes, including the resale market, we believe we are in a strong position to utilize our capital to create significant value for our stakeholders.”
Results and Operational Data for Second Quarter 2024 and Comparisons to Second Quarter 2023
•Net income available to common stockholders was $118.0 million, or $1.25 per diluted share, compared to $60.7 million, or $0.60 per diluted share
•Home sales revenue of $1.1 billion compared to $819.1 million, an increase of 38%
◦New home deliveries of 1,700 homes compared to 1,173 homes, an increase of 45%
◦Average sales price of homes delivered of $666,000 compared to $698,000, a decrease of 5%
•Homebuilding gross margin percentage of 23.6% compared to 20.4%, an increase of 320 basis points
◦Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 27.1%*
•SG&A expense as a percentage of home sales revenue of 11.0% compared to 11.9%, a decrease of 90 basis points
•Net new home orders of 1,651 compared to 1,912, a decrease of 14%
•Active selling communities averaged 152.5 compared to 140.3, an increase of 9%
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◦Net new home orders per average selling community were 10.8 orders (3.6 monthly) compared to 13.6 orders (4.5 monthly)
◦Cancellation rate of 9% compared to 8%
•Backlog units at quarter end of 2,692 homes compared to 2,765, a decrease of 3%
◦Dollar value of backlog at quarter end of $2.0 billion compared to $1.9 billion, an increase of 4%
◦Average sales price of homes in backlog at quarter end of $743,000 compared to $695,000, an increase of 7%
•Redeemed and fully repaid the $450 million principal amount of 5.875% Senior Notes due June 2024
•Ratios of homebuilding debt-to-capital and net homebuilding debt-to-net capital of 22.9% and 12.2%*, respectively, as of June 30, 2024
•Repurchased 1,046,062 shares of common stock at a weighted average price per share of $35.08 for an aggregate dollar amount of $36.7 million in the three months ended June 30, 2024
•Ended the second quarter of 2024 with total liquidity of $1.2 billion, including cash and cash equivalents of $492.9 million and $707.3 million of availability under our revolving credit facility
 
*See “Reconciliation of Non-GAAP Financial Measures”
Outlook
For the third quarter, the Company anticipates delivering between 1,450 and 1,550 homes at an average sales price between $685,000 and $695,000. The Company expects homebuilding gross margin percentage to be in the range of 23.0% to 23.5% for the third quarter and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 11.0% to 11.5%. Finally, the Company expects its effective tax rate for the third quarter to be approximately 25.5%.
For the full year, the Company anticipates delivering between 6,300 and 6,500 homes at an average sales price between $670,000 and $680,000. The Company expects homebuilding gross margin percentage to be in the range of 23.0% to 23.5% for the full year and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 10.5% to 11.0%. Finally, the Company expects its effective tax rate for the full year to be approximately 25.5%.
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 Thursday, July 25, 2024. The call will be hosted by Doug Bauer, Chief Executive Officer, Tom Mitchell, President and Chief Operating Officer, Glenn Keeler, Chief Financial Officer, and Linda Mamet, Executive Vice President and Chief Marketing Officer. Interested parties can listen to the call live and view the related slides on the Internet under the Events & Presentations heading in the Investors section of the Company’s website at www.TriPointeHomes.com. Listeners should go to the website at least fifteen minutes prior to the call to download and install any necessary audio software. The call can also be accessed toll free at (877) 407-3982, or (201) 493-6780 for international participants. Participants should ask for the Tri Pointe Homes Second Quarter 2024 Earnings Conference Call. Those dialing in should do so at least ten minutes prior to the start of the call. A replay of the call will be available for two weeks following the call toll free at (844) 512-2921, or (412) 317-6671 for international participants, using the reference number 13747485. An archive of the webcast will also be available on the Company’s website for a limited time.
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About Tri Pointe Homes, Inc.
One of the largest homebuilders in the U.S., Tri Pointe Homes, Inc. (NYSE: TPH) is a publicly traded company operating in 12 states and the District of Columbia, and is a recognized leader in customer experience, innovative design, and environmentally responsible business practices. The company builds premium homes and communities with deep ties to the communities it serves—some for as long as a century. Tri Pointe Homes combines the financial resources, technology platforms and proven leadership of a national organization with the regional insights, longstanding community connections and agility of empowered local teams. Tri Pointe has won multiple Builder of the Year awards, was named to the 2024 Fortune World’s Most Admired Companies™ list, is one of the 2023 Fortune 100 Best Companies to Work For® and was designated as one of the 2023 PEOPLE Companies That Care®. The company was also named as a Great Place To Work-Certified™ company for three years in a row (2021 through 2023), and was named on several Great Place To Work® Best Workplaces lists in 2022 and 2023. For more information, please visit TriPointeHomes.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, but are not limited to, statements regarding our strategy, projections and estimates concerning the timing and success of specific projects and our future production, land and lot sales, operational and financial results, including our estimates for growth, financial condition, sales prices, prospects, and capital spending. Forward-looking statements that are included in this press release are generally accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “future,” “goal,” “guidance,” “intend,” “likely,” “may,” “might,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “strategy,” “target,” “will,” “would,” 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 effects of general economic conditions, including employment rates, housing starts, interest rate levels, home affordability, inflation, consumer sentiment, 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; the availability of desirable and reasonably priced land and our ability to control, purchase, hold and develop such parcels; access to adequate capital on acceptable terms; geographic concentration of our operations; levels of competition; the successful execution of our internal performance plans, including restructuring and cost reduction initiatives; the prices and availability of supply chain inputs, including raw materials, labor and home components; oil and other energy prices; the effects of U.S. trade policies, including the imposition of tariffs and duties on homebuilding products and retaliatory measures taken by other countries; the effects of weather, including the occurrence of drought conditions in parts of the western United States; the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other natural disasters, and the risk of delays, reduced consumer demand, and shortages and price increases in labor or materials associated with such natural disasters; the risk of loss from acts of war, terrorism, civil unrest or public health emergencies, including outbreaks of contagious disease, such as COVID-19; transportation costs; federal and state tax policies; the effects of land use, environment and other governmental laws and regulations; legal proceedings or disputes and the adequacy of reserves; 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 homebuyers’ confidential information or other forms of cyber-attack; and additional factors discussed under the sections captioned “Risk Factors” included in our annual and quarterly reports filed with the Securities and Exchange Commission. The foregoing list is not exhaustive. New risk factors may emerge from time
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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:
InvestorRelations@TriPointeHomes.com, 949-478-8696
Media Contact:
Carol Ruiz, cruiz@newgroundco.com, 310-437-0045
  

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KEY OPERATIONS AND FINANCIAL DATA
(dollars in thousands)
(unaudited)
Three Months Ended June 30,Six Months Ended June 30,
20242023Change% Change20242023Change% Change
Operating Data:(unaudited)
Home sales revenue$1,133,008 $819,077 $313,931 38 %$2,051,361 $1,587,482 $463,879 29 %
Homebuilding gross margin$267,327 $167,078 $100,249 60 %$478,376 $347,365 $131,011 38 %
Homebuilding gross margin %23.6 %20.4 %3.2 %23.3 %21.9 %1.4 %
Adjusted homebuilding gross margin %*27.1 %24.9 %2.2 %26.8 %25.5 %1.3 %
SG&A expense$124,551 $97,465 $27,086 28 %$226,103 $185,693 $40,410 22 %
SG&A expense as a % of home sales revenue11.0 %11.9 %(0.9)%11.0 %11.7 %(0.7)%
Net income available to common stockholders$118,002 $60,724 $57,278 94 %$217,057 $135,466 $81,591 60 %
Adjusted EBITDA*$215,998 $129,928 $86,070 66 %$391,891 $263,903 $127,988 48 %
Interest incurred$30,378 $37,394 $(7,016)(19)%$66,534 $74,873 $(8,339)(11)%
Interest in cost of home sales$38,994 $25,366 $13,628 54 %$69,643 $45,592 $24,051 53 %
Other Data:
Net new home orders1,651 1,912 (261)(14)%3,465 3,531 (66)(2)%
New homes delivered1,700 1,173 527 45 %3,093 2,238 855 38 %
Average sales price of homes delivered$666 $698 $(32)(5)%$663 $709 $(46)(6)%
Cancellation rate9 %8 %1 %8 %9 %(1)%
Average selling communities152.5 140.3 12.2 9 %152.7 138.4 14.3 10 %
Selling communities at end of period153 145 8 6 %
Backlog (estimated dollar value)$1,999,852 $1,922,895 $76,957 4 %
Backlog (homes)2,692 2,765 (73)(3)%
Average sales price in backlog$743 $695 $48 7 %
June 30,December 31,
20242023Change% Change
Balance Sheet Data:(unaudited)
Cash and cash equivalents$492,940 $868,953 $(376,013)(43)%
Real estate inventories$3,465,811 $3,337,483 $128,328 4 %
Lots owned or controlled34,037 31,960 2,077 6 %
Homes under construction (1)
3,457 3,088 369 12 %
Homes completed, unsold246 263 (17)(6)%
Total homebuilding debt$929,959 $1,382,586 $(452,627)(33)%
Stockholders’ equity$3,139,484 $3,010,958 $128,526 4 %
Book capitalization$4,069,443 $4,393,544 $(324,101)(7)%
Ratio of homebuilding debt-to-capital22.9 %31.5 %(8.6)%
Ratio of net homebuilding debt-to-net capital*12.2 %14.6 %(2.4)%
__________
(1)     Homes under construction included 34 and 69 models as of June 30, 2024 and December 31, 2023, respectively.
*    See “Reconciliation of Non-GAAP Financial Measures”
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CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
 
June 30,December 31,
20242023
Assets(unaudited)
Cash and cash equivalents$492,940 $868,953 
Receivables111,637 224,636 
Real estate inventories3,465,811 3,337,483 
Investments in unconsolidated entities133,591 131,824 
Mortgage loans held for sale32,936 — 
Goodwill and other intangible assets, net156,603 156,603 
Deferred tax assets, net37,996 37,996 
Other assets164,684 157,093 
Total assets$4,596,198 $4,914,588 
Liabilities
Accounts payable$57,410 $64,833 
Accrued expenses and other liabilities437,237 453,531 
Loans payable283,929 288,337 
Senior notes646,030 1,094,249 
Mortgage repurchase facilities32,096 — 
Total liabilities1,456,702 1,900,950 
Commitments and contingencies
Equity
Stockholders’ equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively— — 
Common stock, $0.01 par value, 500,000,000 shares authorized; 93,862,218 and 95,530,512 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively
939 955 
Additional paid-in capital— — 
Retained earnings3,138,545 3,010,003 
Total stockholders’ equity
3,139,484 3,010,958 
Noncontrolling interests12 2,680 
Total equity3,139,496 3,013,638 
Total liabilities and equity$4,596,198 $4,914,588 


 
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CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
 
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Homebuilding:  
Home sales revenue$1,133,008 $819,077 $2,051,361 $1,587,482 
Land and lot sales revenue4,160 7,086 11,228 8,792 
Other operations revenue782 796 1,569 1,470 
Total revenues1,137,950 826,959 2,064,158 1,597,744 
Cost of home sales865,681 651,999 1,572,985 1,240,117 
Cost of land and lot sales3,841 7,370 9,598 8,813 
Other operations expense765 782 1,530 1,447 
Sales and marketing56,804 43,241 107,028 85,103 
General and administrative67,747 54,224 119,075 100,590 
Homebuilding income from operations143,112 69,343 253,942 161,674 
Equity in income of unconsolidated entities99 42 156 269 
Other income, net9,934 11,093 25,160 18,697 
Homebuilding income before income taxes153,145 80,478 279,258 180,640 
Financial Services:
Revenues16,974 10,370 30,168 19,246 
Expenses10,890 7,405 19,617 13,236 
Financial services income before income taxes6,084 2,965 10,551 6,010 
Income before income taxes159,229 83,443 289,809 186,650 
Provision for income taxes(41,227)(21,472)(72,811)(48,822)
Net income118,002 61,971 216,998 137,828 
Net income attributable to noncontrolling interests— (1,247)59 (2,362)
Net income available to common stockholders$118,002 $60,724 $217,057 $135,466 
Earnings per share  
Basic$1.25 $0.61 $2.29 $1.35 
Diluted$1.25 $0.60 $2.28 $1.34 
Weighted average shares outstanding 
Basic94,059,037 99,598,933 94,645,676 100,305,168 
Diluted94,740,019 100,634,964 95,305,469 101,184,993 
 
 
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MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY
(dollars in thousands)
(unaudited)
 
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
New
Homes
Delivered		Average
Sales
Price		New
Homes
Delivered		Average
Sales
Price		New
Homes
Delivered		Average
Sales
Price		New
Homes
Delivered		Average
Sales
Price
Arizona140 $712 195 $765 277 $724 330 $773 
California570 762 352 798 987 766 691 813 
Nevada117 646 88 743 230 665 186 753 
Washington74 875 40 733 127 886 58 802 
West total901 748 675 778 1,621 754 1,265 793 
Colorado53 675 49 732 95 703 93 758 
Texas475 556 278 560 915 553 488 588 
Central total528 568 327 586 1,010 567 581 615 
Carolinas(1)208 489 142 483 382 477 317 458 
Washington D.C. Area(2)63 904 29 1,176 80 937 75 1,082 
East total271 586 171 600 462 556 392 577 
Total1,700 $666 1,173 $698 3,093 $663 2,238 $709 
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Net New
Home
Orders		Average
Selling
Communities		Net New
Home
Orders		Average
Selling
Communities		Net New
Home
Orders		Average
Selling
Communities		Net New
Home
Orders		Average
Selling
Communities
Arizona182 15.2 189 13.7 338 13.6 306 13.4 
California576 42.2 787 49.2 1,189 44.1 1,488 51.6 
Nevada118 8.3 105 8.0 272 8.9 189 7.6 
Washington77 5.8 70 5.8 184 5.7 122 5.4 
West total953 71.5 1,151 76.7 1,983 72.3 2,105 78.0 
Colorado25 10.5 38 6.8 72 10.7 79 6.4 
Texas441 52.5 494 39.0 924 52.4 808 36.1 
Central total466 63.0 532 45.8 996 63.1 887 42.5 
Carolinas(1)130 11.5 188 14.3 309 11.4 439 14.5 
Washington D.C. Area(2)102 6.5 41 3.5 177 5.9 100 3.4 
East total232 18.0 229 17.8 486 17.3 539 17.9 
Total1,651 152.5 1,912 140.3 3,465 152.7 3,531 138.4 
(1)     Carolinas comprises North Carolina and South Carolina.
(2)     Washington D.C. Area comprises Maryland, Virginia and the District of Columbia.

 
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MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY, continued
(dollars in thousands)
(unaudited)
 
As of June 30, 2024As of June 30, 2023
Backlog
Units		Backlog
Dollar
Value		Average
Sales
Price		Backlog
Units		Backlog
Dollar
Value		Average
Sales
Price
Arizona320 $245,870 $768 354 $276,167 $780 
California900 724,667 805 1,095 797,480 728 
Nevada173 100,881 583 128 94,278 737 
Washington147 138,919 945 99 91,266 922 
West total1,540 1,210,337 786 1,676 1,259,191 751 
Colorado25 18,664 747 36 24,889 691 
Texas715 428,420 599 602 340,938 566 
Central total740 447,084 604 638 365,827 573 
Carolinas(1)209 115,638 553 342 156,759 458 
Washington D.C. Area(2)203 226,793 1,117 109 141,118 1,295 
East total412 342,431 831 451 297,877 660 
Total2,692 $1,999,852 $743 2,765 $1,922,895 $695 
June 30,December 31,
20242023
Lots Owned or Controlled:
Arizona2,123 2,394 
California10,650 10,148 
Nevada1,579 1,785 
Washington698 712 
West total15,050 15,039 
Colorado1,849 1,908 
Texas10,700 10,056 
Utah156 — 
Central total12,705 11,964 
Carolinas(1)5,022 4,038 
Washington D.C. Area(2)1,260 919 
East total6,282 4,957 
Total34,037 31,960 
June 30,December 31,
20242023
Lots by Ownership Type:
Lots owned17,824 18,739 
Lots controlled (3)16,213 13,221 
Total34,037 31,960 

(1)     Carolinas comprises North Carolina and South Carolina.
(2)     Washington D.C. Area comprises Maryland, Virginia and the District of Columbia.
(3)     As of June 30, 2024 and December 31, 2023, lots controlled included lots that were under land option contracts or purchase contracts. As of June 30, 2024 and December 31, 2023, lots controlled for Central include 3,449 and 3,561 lots, respectively, and lots controlled for East include 47 and 71 lots, respectively, which represent our expected share of lots owned by our investments in unconsolidated land development joint ventures.
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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 tables reconcile the 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 June 30,
2024%2023%
(dollars in thousands)
Home sales revenue$1,133,008 100.0 %$819,077 100.0 %
Cost of home sales865,681 76.4 %651,999 79.6 %
Homebuilding gross margin267,327 23.6 %167,078 20.4 %
Add:  interest in cost of home sales38,994 3.4 %25,366 3.1 %
Add:  impairments and lot option abandonments968 0.1 %11,761 1.4 %
Adjusted homebuilding gross margin$307,289 27.1 %$204,205 24.9 %
Homebuilding gross margin percentage23.6 % 20.4 % 
Adjusted homebuilding gross margin percentage27.1 % 24.9 % 

Six Months Ended June 30,
2024%2023%
(dollars in thousands)
Home sales revenue$2,051,361 100.0 %$1,587,482 100.0 %
Cost of home sales1,572,985 76.7 %1,240,117 78.1 %
Homebuilding gross margin478,376 23.3 %347,365 21.9 %
Add:  interest in cost of home sales69,643 3.4 %45,592 2.9 %
Add:  impairments and lot option abandonments1,370 0.1 %12,478 0.8 %
Adjusted homebuilding gross margin$549,389 26.8 %$405,435 25.5 %
Homebuilding gross margin percentage23.3 %21.9 %
Adjusted homebuilding gross margin percentage26.8 %25.5 %








Page 10
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
(unaudited)
 
The following table reconciles the Company’s ratio of homebuilding debt-to-capital to the non-GAAP ratio of net homebuilding debt-to-net capital. We believe that the ratio of net homebuilding debt-to-net 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.
 
June 30, 2024December 31, 2023
Loans payable$283,929 $288,337 
Senior notes646,030 1,094,249 
Mortgage repurchase facilities32,096 — 
Total debt962,055 1,382,586 
Less: mortgage repurchase facilities(32,096)— 
Total homebuilding debt929,959 1,382,586 
Stockholders’ equity3,139,484 3,010,958 
Total capital$4,069,443 $4,393,544 
Ratio of homebuilding debt-to-capital(1)22.9 %31.5 %
Total homebuilding debt$929,959 $1,382,586 
Less: Cash and cash equivalents(492,940)(868,953)
Net homebuilding debt437,019 513,633 
Stockholders’ equity3,139,484 3,010,958 
Net capital$3,576,503 $3,524,591 
Ratio of net homebuilding debt-to-net capital(2)12.2 %14.6 %
__________
(1)    The ratio of homebuilding debt-to-capital is computed as the quotient obtained by dividing total homebuilding debt by the sum of total homebuilding debt plus stockholders’ equity.
(2)    The ratio of net homebuilding debt-to-net capital is computed as the quotient obtained by dividing net homebuilding debt (which is total homebuilding debt less cash and cash equivalents) by the sum of net homebuilding debt plus stockholders’ equity.


Page 11
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
(unaudited)
 
The following table calculates the non-GAAP financial measures of EBITDA and Adjusted EBITDA and reconciles those amounts to net income available to common stockholders, as reported and prepared in accordance with GAAP. EBITDA means net income available to common stockholders before (a) interest expense, (b) expensing of previously capitalized interest included in costs of home sales, (c) income taxes and (d) depreciation and amortization. Adjusted EBITDA means EBITDA before (e) amortization of stock-based compensation and (f) impairments and lot option abandonments. 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 June 30,Six Months Ended June 30,
2024202320242023
(in thousands)
Net income available to common stockholders$118,002 $60,724 $217,057 $135,466 
Interest expense:
Interest incurred30,378 37,394 66,534 74,873 
Interest capitalized(30,378)(37,394)(66,534)(74,873)
Amortization of interest in cost of sales39,164 25,681 70,010 45,932 
Provision for income taxes41,227 21,472 72,811 48,822 
Depreciation and amortization7,697 6,128 15,024 13,182 
EBITDA206,090 114,005 374,902 243,402 
Amortization of stock-based compensation8,940 4,162 15,619 8,023 
Impairments and lot option abandonments968 11,761 1,370 12,478 
Adjusted EBITDA$215,998 $129,928 $391,891 $263,903 
 
Page 12
v3.24.2
Cover Page
Jul. 25, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 25, 2024
Entity Registrant Name Tri Pointe Homes, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 1-35796
Entity Tax Identification Number 61-1763235
Entity Address, Address Line One 940 Southwood Blvd
Entity Address, Address Line Two Suite 200
Entity Address, City or Town Incline Village
Entity Address, State or Province NV
Entity Address, Postal Zip Code 89451
City Area Code 775
Local Phone Number 413-1030
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol TPH
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001561680
Amendment Flag false
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