Exhibit 99.1
tphlogo.jpg



TRI POINTE GROUP, INC. REPORTS 2018 THIRD QUARTER RESULTS

-Home Sales Revenue up 19% on an 8% Increase in Deliveries and a 10% Increase in Average Sales Price- 
-Homebuilding Gross Margin Percentage Increased 180 Basis Points to 21.3%-
-Diluted Earnings Per Share of $0.43-
-Repurchased $139.3 million of Common Stock-
Irvine, California, October 24, 2018 /Business Wire/ – TRI Pointe Group, Inc. (the "Company") (NYSE: TPH) today announced results for the third quarter ended September 30, 2018.
Results and Operational Data for Third Quarter 2018 and Comparisons to Third Quarter 2017
Net income available to common stockholders was $64.0 million, or $0.43 per diluted share, compared to $72.3 million, or $0.48 per diluted share
Home sales revenue of $771.8 million compared to $648.6 million, an increase of 19%
New home deliveries of 1,205 homes compared to 1,111 homes, an increase of 8%
Average sales price of homes delivered of $640,000 compared to $584,000, an increase of 10%
Homebuilding gross margin percentage of 21.3% compared to 19.5%, an increase of 180 basis points
Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 24.0%*
SG&A expense as a percentage of homes sales revenue of 10.7% compared to 10.2%, an increase of 50 basis points
New home orders of 1,035 compared to 1,268, a decrease of 18%
Active selling communities averaged 127.3 compared to 129.8, a decrease of 2%
New home orders per average selling community were 8.1 orders (2.7 monthly) compared to 9.8 orders (3.3 monthly)
Cancellation rate increased to 19% compared to 15%
Backlog units at quarter end of 2,101 homes compared to 2,265, a decrease of 7%
Dollar value of backlog at quarter end of $1.4 billion compared to $1.5 billion, a decrease of 3%
Average sales price of homes in backlog at quarter end of $681,000 compared to $654,000, an increase of 4%
Ratios of debt-to-capital and net debt-to-net capital of 43.7% and 42.3%*, respectively, as of September 30, 2018
Repurchased 9,852,009 shares of common stock at a weighted average price per share of $14.14 for an aggregate dollar amount of $139.3 million in the three months ended September 30, 2018
Ended third quarter of 2018 with total liquidity of $569.9 million, including cash of $83.1 million and $486.8 million of availability under the Company's unsecured revolving credit facility
 
*    See "Reconciliation of Non-GAAP Financial Measures"
“TRI Pointe Group turned in another strong operational performance in the third quarter, highlighted by year-over-year home sales revenue growth of 19% and gross margin expansion of 180 basis points,” said TRI Pointe Group Chief Executive Officer Doug Bauer. “Our absorption rates did slow in the quarter as compared to the same period last year, which we feel is a natural reaction by buyers confronted by higher mortgage interest rates and higher home prices. It is important to note that, while not as strong as the same period last year, our overall absorption rate of 2.7

Page 1

tphlogo.jpg

homes per community per month for the quarter was similar to the company's historical third quarter absorption rate in other years.”
Mr. Bauer continued, “We remain focused on the long-term outlook for our company and industry, which we believe is positive given the current strong economic fundamentals and favorable demographic trends. Our company’s leadership is comprised of industry veterans who know how to compete effectively in challenging demand environments. We believe this experience, coupled with our strong balance sheet, product differentiation, and market positioning, makes TRI Pointe Group well positioned for long-term success.”
Third Quarter 2018 Operating Results
Net income available to common stockholders was $64.0 million, or $0.43 per diluted share, for the third quarter of 2018, compared to net income available to common stockholders of $72.3 million, or $0.48 per diluted share, for the third quarter of 2017. Included in net income available to common stockholders for the third quarter of 2017 was gross margin of $55.4 million related to the sale of a land parcel consisting of 69 homebuilding lots located in the Pacific Highlands Ranch community in San Diego, California.
Home sales revenue increased $123.1 million, or 19%, to $771.8 million for the third quarter of 2018, as compared to $648.6 million for the third quarter of 2017.  The increase was primarily attributable to a 10% increase in the average sales price of homes delivered to $640,000, compared to $584,000 in the third quarter of 2017, and an 8% increase in new home deliveries to 1,205, compared to 1,111 in the third quarter of 2017.
Homebuilding gross margin percentage for the third quarter of 2018 increased to 21.3%, compared to 19.5% for the third quarter of 2017.  Excluding interest and impairments and lot option abandonments in cost of home sales, adjusted homebuilding gross margin percentage was 24.0%* for the third quarter of 2018, compared to 22.0%* for the third quarter of 2017.  
Selling, general and administrative ("SG&A") expense for the third quarter of 2018 increased to 10.7% of home sales revenue as compared to 10.2% for the third quarter of 2017, primarily due to higher selling costs related to the timing of new community openings and the adoption of Accounting Standards Update 606, resulting in various sales office, model and other marketing related costs that were previously capitalized to inventory and amortized through cost of home sales being expensed when incurred to selling expense or capitalized to other assets and amortized to selling expense.
New home orders decreased 18% to 1,035 homes for the third quarter of 2018, as compared to 1,268 homes for the same period in 2017.  Average selling communities decreased 2% to 127.3 for the third quarter of 2018 compared to 129.8 for the third quarter of 2017. The Company’s overall absorption rate per average selling community decreased 17% for the third quarter of 2018 to 8.1 orders (2.7 monthly) compared to 9.8 orders (3.3 monthly) during the third quarter of 2017.  
The Company ended the quarter with 2,101 homes in backlog, representing approximately $1.4 billion. The average sales price of homes in backlog as of September 30, 2018 increased $27,000, or 4%, to $681,000, compared to $654,000 as of September 30, 2017.  
“We continue to focus on growing our premium lifestyle brand, improving the sales process, and implementing product offerings that are consistent with market demand profiles,” said TRI Pointe Group Chief Operating Officer Tom Mitchell. “We feel that this focus differentiates us from the competition and leaves us well positioned to compete effectively for home buyers in all markets and product segments.”
* See “Reconciliation of Non-GAAP Financial Measures”
Outlook
For the fourth quarter of 2018, the Company expects to open 19 new communities, and close out of 14, resulting in 130 active selling communities as of December 31, 2018.  In addition, the Company anticipates delivering 80% to 85% of its 2,101 units in backlog as of September 30, 2018 at an average sales price of $640,000.  For the full year,

Page 2

tphlogo.jpg

the Company expects to deliver between 5,025 and 5,130 homes at an average sales price of $635,000. The Company anticipates its homebuilding gross margin percentage will be in a range of 20.0% to 20.5% for the fourth quarter, resulting in a full year range of 21.0% to 21.5%. Finally, the Company expects its SG&A expense as a percentage of home sales revenue to be in the range of 8.8% to 9.2% for the fourth quarter, resulting in a full year range of 10.1% to 10.5%.
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 Wednesday, October 24, 2018.  The call will be hosted by Doug Bauer, Chief Executive Officer, Tom Mitchell, President and Chief Operating Officer and Mike Grubbs, Chief Financial Officer.
Interested parties can listen to the call live and view the related presentation slides 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 fifteen 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 Third Quarter 2018 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 1-844-512-2921, the international dial-in number is 1-412-317-6671, and the reference code is #13683227.  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 among the largest public homebuilders in the United States. The company designs, constructs and sells premium single-family homes through its portfolio of six quality brands across eight states, including MaracayTM 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. Winchester is a registered trademark and is used with permission.

Page 3

tphlogo.jpg

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 effect of general economic conditions, 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 any restructuring and cost reduction initiatives; global economic conditions; raw material prices; oil and other energy prices; the effect of weather, including the re-occurrence of drought conditions in California; 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; transportation costs; federal and state tax policies; the effect of land use, environment and other governmental 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 customers’ 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 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

tphlogo.jpg

KEY OPERATIONS AND FINANCIAL DATA
(dollars in thousands)
(unaudited)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
Change
 
2018
 
2017
 
Change
Operating Data:
 
 
 
 
 
 
 
 
 
 
 
Home sales revenue
$
771,768

 
$
648,638

 
$
123,130

 
$
2,123,135

 
$
1,609,458

 
$
513,677

Homebuilding gross margin
$
164,715

 
$
126,720

 
$
37,995

 
$
461,484

 
$
314,895

 
$
146,589

Homebuilding gross margin %
21.3
%
 
19.5
%
 
1.8
%
 
21.7
%
 
19.6
%
 
2.1
 %
Adjusted homebuilding gross margin %*
24.0
%
 
22.0
%
 
2.0
%
 
24.3
%
 
22.0
%
 
2.3
 %
SG&A expense
$
82,963

 
$
66,135

 
$
16,828

 
$
240,287

 
$
193,502

 
$
46,785

SG&A expense as a % of home sales
   revenue
10.7
%
 
10.2
%
 
0.5
%
 
11.3
%
 
12.0
%
 
(0.7
)%
Net income available to common
   stockholders
$
63,969

 
$
72,264

 
$
(8,295
)
 
$
170,529

 
$
113,171

 
$
57,358

Adjusted EBITDA*
$
115,333

 
$
139,550

 
$
(24,217
)
 
$
312,221

 
$
237,755

 
$
74,466

Interest incurred
$
23,942

 
$
22,865

 
$
1,077

 
$
67,089

 
$
61,669

 
$
5,420

Interest in cost of home sales
$
20,128

 
$
15,623

 
$
4,505

 
$
53,926

 
$
38,448

 
$
15,478

 
 
 
 
 
 
 
 
 
 
 
 
Other Data:
 
 
 
 
 
 
 
 
 
 
 
Net new home orders
1,035

 
1,268

 
(233
)
 
3,874

 
4,012

 
(138
)
New homes delivered
1,205

 
1,111

 
94

 
3,344

 
2,940

 
404

Average sales price of homes delivered
$
640

 
$
584

 
$
56

 
$
635

 
$
547

 
$
88

Cancellation rate
19
%
 
15
%
 
4
%
 
16
%
 
15
%
 
1
 %
Average selling communities
127.3

 
129.8

 
(2.5
)
 
129.0

 
127.4

 
1.6

Selling communities at end of period
125

 
127

 
(2
)
 
 
 
 
 
 
Backlog (estimated dollar value)
$
1,431,225

 
$
1,482,265

 
$
(51,040
)
 
 
 
 
 
 
Backlog (homes)
2,101

 
2,265

 
(164
)
 
 
 
 
 
 
Average sales price in backlog
$
681

 
$
654

 
$
27

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
December 31,
 
 
 
 
 
 
 
 
 
2018
 
2017
 
Change
 
 
 
 
 
 
Balance Sheet Data:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
83,086

 
$
282,914

 
$
(199,828
)
 
 
 
 
 
 
Real estate inventories
$
3,377,735

 
$
3,105,553

 
$
272,182

 
 
 
 
 
 
Lots owned or controlled
28,401

 
27,312

 
1,089

 
 
 
 
 
 
Homes under construction (1)
2,887

 
1,941

 
946

 
 
 
 
 
 
Homes completed, unsold
213

 
269

 
(56
)
 
 
 
 
 
 
Debt
$
1,519,198

 
$
1,471,302

 
$
47,896

 
 
 
 
 
 
Stockholders' equity
$
1,960,397

 
$
1,929,722

 
$
30,675

 
 
 
 
 
 
Book capitalization
$
3,479,595

 
$
3,401,024

 
$
78,571

 
 
 
 
 
 
Ratio of debt-to-capital
43.7
%
 
43.3
%
 
0.4
%
 
 
 
 
 
 
Ratio of net debt-to-net capital*
42.3
%
 
38.1
%
 
4.2
%
 
 
 
 
 
 
__________
(1)  
Homes under construction included 91 and 60 models at September 30, 2018 and December 31, 2017, respectively.
*
See “Reconciliation of Non-GAAP Financial Measures”

Page 5

tphlogo.jpg

CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
 
 
September 30,
 
December 31,
 
2018
 
2017
Assets
(unaudited)
 
 
Cash and cash equivalents
$
83,086

 
$
282,914

Receivables
85,026

 
125,600

Real estate inventories
3,377,735

 
3,105,553

Investments in unconsolidated entities
4,275

 
5,870

Goodwill and other intangible assets, net
160,560

 
160,961

Deferred tax assets, net
59,113

 
76,413

Other assets
107,309

 
48,070

Total assets
$
3,877,104

 
$
3,805,381

 
 
 
 
Liabilities
 
 
 
Accounts payable
$
83,711

 
$
72,870

Accrued expenses and other liabilities
313,194

 
330,882

Unsecured revolving credit facility
100,000

 

Senior notes
1,419,198

 
1,471,302

Total liabilities
1,916,103

 
1,875,054

 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
Equity
 
 
 
Stockholders' Equity:
 
 
 
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no
shares issued and outstanding as of September 30, 2018 and
December 31, 2017, respectively

 

Common stock, $0.01 par value, 500,000,000 shares authorized;
  142,202,313 and 151,162,999 shares issued and outstanding at
   September 30, 2018 and December 31, 2017, respectively
1,422

 
1,512

Additional paid-in capital
661,570

 
793,980

Retained earnings
1,297,405

 
1,134,230

Total stockholders' equity
1,960,397

 
1,929,722

Noncontrolling interests
604

 
605

Total equity
1,961,001

 
1,930,327

Total liabilities and equity
$
3,877,104

 
$
3,805,381



 

Page 6

tphlogo.jpg

CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Homebuilding:
 

 
 

 
 
 
 
Home sales revenue
$
771,768

 
$
648,638

 
$
2,123,135

 
$
1,609,458

Land and lot sales revenue
2,225

 
68,218

 
3,966

 
69,661

Other operations revenue
598

 
584

 
1,795

 
1,752

Total revenues
774,591

 
717,440

 
2,128,896

 
1,680,871

Cost of home sales
607,053

 
521,918

 
1,661,651

 
1,294,563

Cost of land and lot sales
2,234

 
12,001

 
4,163

 
13,299

Other operations expense
590

 
575

 
1,781

 
1,726

Sales and marketing
44,854

 
33,179

 
128,881

 
92,209

General and administrative
38,109

 
32,956

 
111,406

 
101,293

Homebuilding income from operations
81,751

 
116,811

 
221,014

 
177,781

Equity in income (loss) of unconsolidated entities
15

 

 
(384
)
 
1,646

Other (expense) income, net
(477
)
 
26

 
(379
)
 
147

Homebuilding income before income taxes
81,289

 
116,837

 
220,251

 
179,574

Financial Services:
 
 
 
 
 
 
 
Revenues
480

 
295

 
1,154

 
881

Expenses
125

 
82

 
391

 
233

Equity in income of unconsolidated entities
1,986

 
1,351

 
4,972

 
2,911

Financial services income before income taxes
2,341

 
1,564

 
5,735

 
3,559

Income before income taxes
83,630

 
118,401

 
225,986

 
183,133

Provision for income taxes
(19,661
)
 
(46,112
)
 
(55,457
)
 
(69,824
)
Net income
63,969

 
72,289

 
170,529

 
113,309

Net income attributable to noncontrolling interests

 
(25
)
 

 
(138
)
Net income available to common stockholders
$
63,969

 
$
72,264

 
$
170,529

 
$
113,171

Earnings per share
 
 
 

 
 
 
 

Basic
$
0.43

 
$
0.48

 
$
1.13

 
$
0.73

Diluted
$
0.43

 
$
0.48

 
$
1.13

 
$
0.73

Weighted average shares outstanding
 
 
 

 
 
 
 
Basic
147,725,074

 
151,214,744

 
150,377,472

 
155,238,206

Diluted
148,318,032

 
152,129,825

 
151,482,456

 
155,936,076

 
 

Page 7

tphlogo.jpg

MARKET DATA BY REPORTING SEGMENT & STATE
(dollars in thousands)
(unaudited)
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
New
Homes
Delivered
 
Average
Sales
Price
 
New
Homes
Delivered
 
Average
Sales
Price
 
New
Homes
Delivered
 
Average
Sales
Price
 
New
Homes
Delivered
 
Average
Sales
Price
New Homes Delivered:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maracay
137

 
$
487

 
164

 
$
477

 
383

 
$
476

 
447

 
$
459

Pardee Homes
354

 
634

 
328

 
502

 
1,005

 
645

 
896

 
478

Quadrant Homes
73

 
898

 
79

 
686

 
241

 
795

 
206

 
649

Trendmaker Homes
150

 
516

 
104

 
504

 
389

 
501

 
343

 
493

TRI Pointe Homes
367

 
721

 
332

 
720

 
983

 
723

 
783

 
669

Winchester Homes
124

 
590

 
104

 
579

 
343

 
571

 
265

 
561

Total
1,205

 
$
640

 
1,111

 
$
584

 
3,344

 
$
635

 
2,940

 
$
547

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
New
Homes
Delivered
 
Average
Sales
Price
 
New
Homes
Delivered
 
Average
Sales
Price
 
New
Homes
Delivered
 
Average
Sales
Price
 
New
Homes
Delivered
 
Average
Sales
Price
New Homes Delivered:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
California
513

 
$
718

 
535

 
$
640

 
1,429

 
$
733

 
1,272

 
$
603

Colorado
63

 
598

 
30

 
591

 
182

 
594

 
97

 
593

Maryland
87

 
533

 
77

 
562

 
253

 
539

 
192

 
534

Virginia
37

 
724

 
27

 
625

 
90

 
661

 
73

 
633

Arizona
137

 
487

 
164

 
477

 
383

 
476

 
447

 
459

Nevada
145

 
571

 
95

 
458

 
377

 
538

 
310

 
414

Texas
150

 
516

 
104

 
504

 
389

 
501

 
343

 
493

Washington
73

 
898

 
79

 
686

 
241

 
795

 
206

 
649

Total
1,205

 
$
640

 
1,111

 
$
584

 
3,344

 
$
635

 
2,940

 
$
547


 

Page 8

tphlogo.jpg

MARKET DATA BY REPORTING SEGMENT & STATE, continued
(unaudited)
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
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
Net New Home Orders:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maracay
97

 
11.0

 
158

 
13.5

 
382

 
12.6

 
504

 
15.3

Pardee Homes
357

 
36.8

 
421

 
30.8

 
1,294

 
34.3

 
1,282

 
29.3

Quadrant Homes
64

 
7.0

 
84

 
8.3

 
226

 
6.8

 
311

 
7.6

Trendmaker Homes
139

 
27.5

 
113

 
29.3

 
455

 
28.7

 
393

 
30.9

TRI Pointe Homes
266

 
30.3

 
378

 
34.7

 
1,133

 
32.5

 
1,144

 
31.9

Winchester Homes
112

 
14.7

 
114

 
13.2

 
384

 
14.1

 
378

 
12.4

Total
1,035

 
127.3

 
1,268

 
129.8

 
3,874

 
129.0

 
4,012

 
127.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
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
Net New Home Orders:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
California
416

 
45.3

 
632

 
45.2

 
1,651

 
45.0

 
1,885

 
43.1

Colorado
72

 
6.8

 
40

 
8.0

 
251

 
6.9

 
144

 
6.5

Maryland
69

 
9.0

 
81

 
10.0

 
254

 
9.2

 
265

 
9.0

Virginia
43

 
5.7

 
33

 
3.2

 
130

 
4.9

 
113

 
3.4

Arizona
97

 
11.0

 
158

 
13.5

 
382

 
12.6

 
504

 
15.3

Nevada
135

 
15.0

 
127

 
12.3

 
525

 
14.9

 
397

 
11.6

Texas
139

 
27.5

 
113

 
29.3

 
455

 
28.7

 
393

 
30.9

Washington
64

 
7.0

 
84

 
8.3

 
226

 
6.8

 
311

 
7.6

Total
1,035

 
127.3

 
1,268

 
129.8

 
3,874

 
129.0

 
4,012

 
127.4


 

Page 9

tphlogo.jpg

MARKET DATA BY REPORTING SEGMENT & STATE, continued
(dollars in thousands)
(unaudited)
 
 
As of September 30, 2018
 
As of September 30, 2017
 
Backlog
Units
 
Backlog
Dollar
Value
 
Average
Sales
Price
 
Backlog
Units
 
Backlog
Dollar
Value
 
Average
Sales
Price
Backlog:
 
 
 
 
 
 
 
 
 
 
 
Maracay
216

 
$
122,617

 
$
568

 
305

 
$
154,324

 
$
506

Pardee Homes
698

 
451,398

 
647

 
646

 
436,376

 
676

Quadrant Homes
129

 
127,136

 
986

 
206

 
160,202

 
778

Trendmaker Homes
239

 
143,000

 
598

 
213

 
107,968

 
507

TRI Pointe Homes
627

 
460,700

 
735

 
659

 
481,537

 
731

Winchester Homes
192

 
126,374

 
658

 
236

 
141,858

 
601

Total
2,101

 
$
1,431,225

 
$
681

 
2,265

 
$
1,482,265

 
$
654

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2018
 
As of September 30, 2017
 
Backlog
Units
 
Backlog
Dollar
Value
 
Average
Sales
Price
 
Backlog
Units
 
Backlog
Dollar
Value
 
Average
Sales
Price
Backlog:
 
 
 
 
 
 
 
 
 
 
 
California
888

 
$
654,929

 
$
738

 
1,015

 
$
750,947

 
$
740

Colorado
169

 
92,037

 
545

 
106

 
65,563

 
619

Maryland
114

 
64,672

 
567

 
175

 
98,920

 
565

Virginia
78

 
61,701

 
791

 
61

 
42,937

 
704

Arizona
216

 
122,617

 
568

 
305

 
154,324

 
506

Nevada
268

 
165,133

 
616

 
184

 
101,404

 
551

Texas
239

 
143,000

 
598

 
213

 
107,968

 
507

Washington
129

 
127,136

 
986

 
206

 
160,202

 
778

Total
2,101

 
$
1,431,225

 
$
681

 
2,265

 
$
1,482,265

 
$
654



 

Page 10

tphlogo.jpg

MARKET DATA BY REPORTING SEGMENT & STATE, continued
(unaudited)
 
 
September 30,
 
December 31,
 
2018
 
2017
Lots Owned or Controlled(1):
 
 
 
Maracay
3,211

 
2,519

Pardee Homes
15,404

 
15,144

Quadrant Homes
1,855

 
1,726

Trendmaker Homes
1,821

 
1,855

TRI Pointe Homes
4,214

 
3,964

Winchester Homes
1,896

 
2,104

Total
28,401

 
27,312

 
 
 
 
 
 
 
 
 
September 30,
 
December 31,
 
2018
 
2017
Lots Owned or Controlled(1):
 
 
 
California
16,148

 
16,292

Colorado
870

 
742

Maryland
1,258

 
1,507

Virginia
638

 
597

Arizona
3,211

 
2,519

Nevada
2,600

 
2,074

Texas
1,821

 
1,855

Washington
1,855

 
1,726

Total
28,401

 
27,312

 
 
 
 
 
 
 
 
 
September 30,
 
December 31,
 
2018
 
2017
Lots by Ownership Type:
 
 
 
Lots owned
23,890

 
23,940

Lots controlled(1)
4,511

 
3,372

Total
28,401

 
27,312

__________
(1) 
As of September 30, 2018 and December 31, 2017, lots controlled included lots that were under land option contracts or purchase contracts.
 
 

Page 11

tphlogo.jpg

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 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 September 30,
 
2018
 
%
 
2017
 
%
 
(dollars in thousands)
Home sales revenue
$
771,768

 
100.0
%
 
$
648,638

 
100.0
%
Cost of home sales
607,053

 
78.7
%
 
521,918

 
80.5
%
Homebuilding gross margin
164,715

 
21.3
%
 
126,720

 
19.5
%
Add:  interest in cost of home sales
20,128

 
2.6
%
 
15,623

 
2.4
%
Add:  impairments and lot option abandonments
568

 
0.1
%
 
374

 
0.1
%
Adjusted homebuilding gross margin
$
185,411

 
24.0
%
 
$
142,717

 
22.0
%
Homebuilding gross margin percentage
21.3
%
 
 
 
19.5
%
 
 
Adjusted homebuilding gross margin percentage
24.0
%
 
 
 
22.0
%
 
 


 
Nine Months Ended September 30,
 
2018
 
%
 
2017
 
%
 
(dollars in thousands)
Home sales revenue
$
2,123,135

 
100.0
%
 
$
1,609,458

 
100.0
%
Cost of home sales
1,661,651

 
78.3
%
 
1,294,563

 
80.4
%
Homebuilding gross margin
461,484

 
21.7
%
 
314,895

 
19.6
%
Add:  interest in cost of home sales
53,926

 
2.5
%
 
38,448

 
2.4
%
Add:  impairments and lot option abandonments
1,425

 
0.1
%
 
1,169

 
0.1
%
Adjusted homebuilding gross margin
$
516,835

 
24.3
%
 
$
354,512

 
22.0
%
Homebuilding gross margin percentage
21.7
%
 
 
 
19.6
%
 
 
Adjusted homebuilding gross margin percentage
24.3
%
 
 
 
22.0
%
 
 




 



Page 12

tphlogo.jpg

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
(unaudited)
 
The following table reconciles the Company’s ratio of debt-to-capital to the non-GAAP ratio of net debt-to-net capital. We believe that the ratio of net 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.
 
 
September 30, 2018
 
December 31, 2017
Unsecured revolving credit facility
$
100,000

 
$

Senior notes
1,419,198

 
1,471,302

Total debt
1,519,198

 
1,471,302

Stockholders’ equity
1,960,397

 
1,929,722

Total capital
$
3,479,595

 
$
3,401,024

Ratio of debt-to-capital(1)
43.7
%
 
43.3
%
 


 


Total debt
$
1,519,198

 
$
1,471,302

Less: Cash and cash equivalents
(83,086
)
 
(282,914
)
Net debt
1,436,112

 
1,188,388

Stockholders’ equity
1,960,397

 
1,929,722

Net capital
$
3,396,509

 
$
3,118,110

Ratio of net debt-to-net capital(2)
42.3
%
 
38.1
%
__________
(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-net 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.































Page 13

tphlogo.jpg


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, as reported and prepared in accordance with GAAP.  EBITDA means net income 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, (f) impairments and lot option abandonments and (h) restructuring charges. 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 September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
(in thousands)
Net income available to common stockholders
$
63,969

 
$
72,264

 
$
170,529

 
$
113,171

Interest expense:
 
 
 
 
 
 
 
Interest incurred
23,942

 
22,865

 
67,089

 
61,669

Interest capitalized
(23,942
)
 
(22,865
)
 
(67,089
)
 
(61,669
)
Amortization of interest in cost of sales
20,293

 
15,899

 
54,199

 
38,771

Provision for income taxes
19,661

 
46,112

 
55,457

 
69,824

Depreciation and amortization
7,002

 
867

 
19,581

 
2,567

EBITDA
110,925

 
135,142

 
299,766

 
224,333

Amortization of stock-based compensation
3,765

 
3,887

 
10,955

 
11,631

Impairments and lot option abandonments
643

 
374

 
1,500

 
1,203

Restructuring charges

 
147

 

 
588

Adjusted EBITDA
$
115,333

 
$
139,550

 
$
312,221

 
$
237,755

 
 
 
 
 
 
 
 
 
 
 

Page 14

View differences made from one to another to evaluate Tri Pointe Group, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Tri Pointe Group, Inc..

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account