TRI POINTE HOMES, INC. REPORTS 2021 SECOND QUARTER RESULTS AND ANNOUNCES $250 MILLION INCREASE TO ITS STOCK REPURCHASE PROGRAM
-Net New Home Orders up 22% Year-Over-Year-
-Backlog Units up 53% Year-Over-Year-
-Backlog Dollar Value up 50% Year-Over-Year-
-Homebuilding Gross Margin Percentage of 24.6%-
-Diluted Earnings Per Share of $1.00-
INCLINE VILLAGE, Nev., July 22, 2021 / Tri Pointe Homes, Inc. (the “Company”) (NYSE:TPH) today announced results for the second quarter ended June 30, 2021. The Company also announced that its Board of Directors has authorized the repurchase of up to an additional $250 million of common stock under its existing stock repurchase program (“Repurchase Program”) and extended the term of the Repurchase Program through December 31, 2022, increasing the aggregate authorization under the Repurchase Program from $250 million to $500 million.
“Tri Pointe Homes delivered another strong quarter of profitability in the second quarter of 2021, generating fully diluted earnings per share of $1.00, representing a 133% increase as compared to the second quarter of 2020,” said Tri Pointe Homes Chief Executive Officer Doug Bauer. “Our average sales price and homebuilding gross margin percentage came in above the high end of our stated guidance, as our teams did an excellent job executing on our business plan while navigating the supply chain issues that persist in our industry. In addition, we posted company records in a number of key metrics for a second quarter, including home sales revenue, pre-tax profit, and quarter-ending backlog value.”
Mr. Bauer continued, “Order activity during the second quarter was robust as we averaged 4.7 sales per community per month, a 53% improvement over the second quarter of 2020. Demand trends remained elevated in all of our markets and at all of our price points, a sign that buyers remain motivated in a number of demographic segments in conjunction with the ongoing and widespread shortage of available housing supply. Similar to the first quarter, we intentionally constrained our sales releases to implement price increases and manage our backlog, a decision that proved to be a profitable one for our company, as homebuilding gross margin expanded 300 basis points year-over-year to 24.6% for the quarter.”
Mr. Bauer concluded, “With a favorable industry outlook, a sizable backlog and a rapidly improving return profile, Tri Pointe Homes is poised to continue the strong operating momentum into the back half of 2021. Longer term, we believe we have an excellent opportunity to build on our recent success, thanks to the increasing scale we are realizing in many of our markets and the land investments we have made, which will lead to significant community count growth in 2022. Given these positives, we are extremely optimistic about the future of our company.”
Results and Operational Data for Second Quarter 2021 and Comparisons to Second Quarter 2020
•Net income was $117.9 million, or $1.00 per diluted share, compared to $56.5 million, or $0.43 per diluted share.
•Home sales revenue of $1.0 billion compared to $766.9 million, an increase of 32%
◦New home deliveries of 1,545 homes compared to 1,229 homes, an increase of 26%
◦Average sales price of homes delivered of $653,000 compared to $624,000, an increase of 5%
•Homebuilding gross margin percentage of 24.6% compared to 21.6%, an increase of 300 basis points
◦Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 27.7%*
•SG&A expense as a percentage of homes sales revenue of 9.6% compared to 10.8%, a decrease of 120 basis points
•Net new home orders of 1,622 compared to 1,332, an increase of 22%
The following information was filed by Tri Pointe Group, Inc. (TPH) on Thursday, July 22, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.