0001561680false00015616802024-10-242024-10-24

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) October 24, 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 October 24, 2024, Tri Pointe Homes, Inc., a Delaware corporation (the “Company”), announced in a press release its financial results for the quarter ended September 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 October 24, 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: October 24, 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 THIRD QUARTER RESULTS

-New Home Deliveries of 1,619-
-Home Sales Revenue of $1.1 Billion-
-Homebuilding Gross Margin Percentage of 23.3%-
-Diluted Earnings Per Share of $1.18-
-Homebuilding Debt-to-Capital Ratio Reduced to Record Low of 22.1%-

INCLINE VILLAGE, Nev., October 24, 2024 / Tri Pointe Homes, Inc. (the “Company”) (NYSE:TPH) today announced results for the third quarter ended September 30, 2024.
“Tri Pointe Homes once again delivered excellent financial results for the third quarter,” said Doug Bauer, Tri Pointe Homes Chief Executive Officer. “We achieved a 32% increase in deliveries to 1,619 homes, a 2% rise in the average sales price, and a 35% growth in homes sales revenue to $1.1 billion. We are also pleased to report that the improvements in both volume and pricing were well-balanced across our markets with each reporting segment achieving gains in deliveries and revenues. In addition to higher homes sales revenue, we expanded gross margins by 100 basis points to 23.3% and achieved diluted earnings per share of $1.18, representing a 55% increase compared to the previous year.”
Mr. Bauer continued, “Building on a strong third quarter, we remain focused on scaling efficiency across existing markets, while continuing to drive operational improvements that bolster long-term profitability and returns. Additionally, our recent strategic expansion into three new markets positions us for further geographic diversification and top-line growth, allowing us to capture emerging opportunities as the housing industry remains well-positioned. We ended the quarter with a net homebuilding debt-to-net capital ratio of 7.0%*, further strengthening our balance sheet. This solid foundation gives us flexibility to continue pursuing growth initiatives and delivering value to our stockholders.”
“Tri Pointe Homes is well-positioned to capitalize on the strong fundamentals driving the homebuilding industry,” said Tom Mitchell, Tri Pointe Homes President and Chief Operating Officer. “With a solid financial foundation, the right strategic plan in place, and highly skilled teams across the country, we remain focused on optimizing asset turns and generating strong cash flows, which will fuel further growth. The housing market fundamentals, including favorable demographics and a persistent supply-demand imbalance, create a supportive environment for sustained success. As we execute our strategy, we are confident in our ability to deliver value while maintaining our focus on operational and financial discipline.”
Results and Operational Data for Third Quarter 2024 and Comparisons to Third Quarter 2023
•Net income available to common stockholders was $111.8 million, or $1.18 per diluted share, compared to $75.4 million, or $0.76 per diluted share
•Home sales revenue of $1.1 billion compared to $825.3 million, an increase of 35%
◦New home deliveries of 1,619 homes compared to 1,223 homes, an increase of 32%
◦Average sales price of homes delivered of $688,000 compared to $675,000, an increase of 2%
•Homebuilding gross margin percentage of 23.3% compared to 22.3%, an increase of 100 basis points
◦Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 26.8%*
•SG&A expense as a percentage of home sales revenue of 10.8% compared to 12.3%, a decrease of 150 basis points
•Net new home orders of 1,252 compared to 1,513, a decrease of 17%
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•Active selling communities averaged 150.0 compared to 154.8, a decrease of 3%
◦Net new home orders per average selling community were 8.3 orders (2.8 monthly) compared to 9.8 orders (3.3 monthly)
◦Cancellation rate steady at 10% in both periods
•Backlog units at quarter end of 2,325 homes compared to 3,055, a decrease of 24%
◦Dollar value of backlog at quarter end of $1.7 billion compared to $2.1 billion, a decrease of 18%
◦Average sales price of homes in backlog at quarter end of $745,000 compared to $693,000, an increase of 8%
•Ratios of homebuilding debt-to-capital and net homebuilding debt-to-net capital of 22.1% and 7.0%*, respectively, as of September 30, 2024
•Repurchased 272,777 shares of common stock at a weighted average price per share of $36.24 for an aggregate dollar amount of $9.9 million in the three months ended September 30, 2024
•Ended the third quarter of 2024 with total liquidity of $1.4 billion, including cash and cash equivalents of $676.0 million and $698.1 million of availability under our revolving credit facility
 
*See “Reconciliation of Non-GAAP Financial Measures”
Outlook
For the fourth quarter, the Company anticipates delivering between 1,600 and 1,800 homes at an average sales price between $700,000 and $710,000. The Company expects homebuilding gross margin percentage to be in the range of 23.0% to 23.5% for the fourth quarter and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 10.5% to 10.9%. Finally, the Company expects its effective tax rate for the fourth quarter to be approximately 26.0%.
For the full year, the Company anticipates delivering between 6,300 and 6,500 homes at an average sales price of approximately $680,000. The Company expects homebuilding gross margin percentage to be approximately 23.3% for the full year and anticipates its SG&A expense as a percentage of home sales revenue will be approximately 10.9%. 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, October 24, 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 Third 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 13749196. 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 September 30,Nine Months Ended September 30,
20242023Change% Change20242023Change% Change
Operating Data:(unaudited)
Home sales revenue$1,113,681 $825,295 $288,386 35 %$3,165,042 $2,412,777 $752,265 31 %
Homebuilding gross margin$259,182 $184,221 $74,961 41 %$737,558 $531,586 $205,972 39 %
Homebuilding gross margin %23.3 %22.3 %1.0 %23.3 %22.0 %1.3 %
Adjusted homebuilding gross margin %*26.8 %25.6 %1.2 %26.8 %25.6 %1.2 %
SG&A expense$120,478 $101,233 $19,245 19 %$346,581 $286,926 $59,655 21 %
SG&A expense as a % of home sales revenue10.8 %12.3 %(1.5)%11.0 %11.9 %(0.9)%
Net income available to common stockholders$111,759 $75,402 $36,357 48 %$328,816 $210,868 $117,948 56 %
Adjusted EBITDA*$208,639 $139,678 $68,961 49 %$600,530 $403,581 $196,949 49 %
Interest incurred$25,253 $36,919 $(11,666)(32)%$91,787 $111,792 $(20,005)(18)%
Interest in cost of home sales$37,687 $27,035 $10,652 39 %$107,330 $72,627 $34,703 48 %
Other Data:
Net new home orders1,252 1,513 (261)(17)%4,717 5,044 (327)(6)%
New homes delivered1,619 1,223 396 32 %4,712 3,461 1,251 36 %
Average sales price of homes delivered$688 $675 $13 2 %$672 $697 $(25)(4)%
Cancellation rate10 %10 %0 %8 %9 %(1)%
Average selling communities150.0 154.8 (4.8)(3)%151.6 144.3 7.3 5 %
Selling communities at end of period148 163 (15)(9)%
Backlog (estimated dollar value)$1,731,590 $2,117,319 $(385,729)(18)%
Backlog (homes)2,325 3,055 (730)(24)%
Average sales price in backlog$745 $693 $52 8 %
September 30,December 31,
20242023Change% Change
Balance Sheet Data:(unaudited)
Cash and cash equivalents$675,957 $868,953 $(192,996)(22)%
Real estate inventories$3,412,633 $3,337,483 $75,150 2 %
Lots owned or controlled33,488 31,960 1,528 5 %
Homes under construction (1)
3,009 3,088 (79)(3)%
Homes completed, unsold313 263 50 19 %
Total homebuilding debt$922,194 $1,382,586 $(460,392)(33)%
Stockholders’ equity$3,249,952 $3,010,958 $238,994 8 %
Book capitalization$4,172,146 $4,393,544 $(221,398)(5)%
Ratio of homebuilding debt-to-capital22.1 %31.5 %(9.4)%
Ratio of net homebuilding debt-to-net capital*7.0 %14.6 %(7.6)%
__________
(1)     Homes under construction included 44 and 69 models as of September 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)
 
September 30,December 31,
20242023
Assets(unaudited)
Cash and cash equivalents$675,957 $868,953 
Receivables113,725 224,636 
Real estate inventories3,412,633 3,337,483 
Investments in unconsolidated entities130,798 131,824 
Mortgage loans held for sale80,071 — 
Goodwill and other intangible assets, net156,603 156,603 
Deferred tax assets, net37,996 37,996 
Other assets171,472 157,093 
Total assets$4,779,255 $4,914,588 
Liabilities
Accounts payable$75,214 $64,833 
Accrued expenses and other liabilities456,418 453,531 
Loans payable275,914 288,337 
Senior notes646,280 1,094,249 
Mortgage repurchase facilities75,465 — 
Total liabilities1,529,291 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 September 30, 2024 and December 31, 2023, respectively— — 
Common stock, $0.01 par value, 500,000,000 shares authorized; 93,590,060 and 95,530,512 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively
936 955 
Additional paid-in capital— — 
Retained earnings3,249,016 3,010,003 
Total stockholders’ equity
3,249,952 3,010,958 
Noncontrolling interests12 2,680 
Total equity3,249,964 3,013,638 
Total liabilities and equity$4,779,255 $4,914,588 


 
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CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
 
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Homebuilding:  
Home sales revenue$1,113,681 $825,295 $3,165,042 $2,412,777 
Land and lot sales revenue12,552 1,714 23,780 10,506 
Other operations revenue790 749 2,359 2,219 
Total revenues1,127,023 827,758 3,191,181 2,425,502 
Cost of home sales854,499 641,074 2,427,484 1,881,191 
Cost of land and lot sales11,986 1,474 21,584 10,287 
Other operations expense765 724 2,295 2,171 
Sales and marketing53,744 42,874 160,772 127,977 
General and administrative66,734 58,359 185,809 158,949 
Homebuilding income from operations139,295 83,253 393,237 244,927 
Equity in income of unconsolidated entities227 3 383 272 
Other income, net6,658 11,664 31,818 30,361 
Homebuilding income before income taxes146,180 94,920 425,438 275,560 
Financial Services:
Revenues17,650 10,758 47,818 30,004 
Expenses12,283 6,127 31,900 19,363 
Financial services income before income taxes5,367 4,631 15,918 10,641 
Income before income taxes151,547 99,551 441,356 286,201 
Provision for income taxes(39,788)(22,942)(112,599)(71,764)
Net income111,759 76,609 328,757 214,437 
Net (income) loss attributable to noncontrolling interests— (1,207)59 (3,569)
Net income available to common stockholders$111,759 $75,402 $328,816 $210,868 
Earnings per share  
Basic$1.19 $0.77 $3.49 $2.12 
Diluted$1.18 $0.76 $3.46 $2.10 
Weighted average shares outstanding 
Basic93,600,678 98,018,498 94,294,800 99,534,570 
Diluted94,640,211 99,030,210 95,081,173 100,458,357 
 
 
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MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY
(dollars in thousands)
(unaudited)
 
Three Months Ended September 30,Nine Months Ended September 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
Arizona95 $743 167 $809 372 $728 497 $785 
California620 765 425 683 1,607 765 1,116 764 
Nevada133 579 103 749 363 633 289 751 
Washington70 880 48 847 197 884 106 823 
West total918 744 743 731 2,539 750 2,008 770 
Colorado38 719 17 733 133 708 110 754 
Texas417 550 287 527 1,332 552 775 565 
Central total455 564 304 538 1,465 566 885 589 
Carolinas(1)144 498 122 445 526 483 439 454 
Washington D.C. Area(2)102 1,002 54 1,185 182 973 129 1,125 
East total246 707 176 672 708 609 568 607 
Total1,619 $688 1,223 $675 4,712 $672 3,461 $697 
Three Months Ended September 30,Nine Months Ended September 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
Arizona126 15.0 129 14.0 464 14.0 435 13.6 
California418 43.4 508 48.8 1,607 44.1 1,996 50.6 
Nevada71 8.0 146 10.5 343 8.6 335 8.6 
Washington52 5.3 44 5.5 236 5.6 166 5.4 
West total667 71.7 827 78.8 2,650 72.3 2,932 78.2 
Colorado32 10.8 39 9.5 104 10.7 118 7.6 
Texas372 50.0 454 49.0 1,296 51.5 1,262 40.8 
Central total404 60.8 493 58.5 1,400 62.2 1,380 48.4 
Carolinas(1)105 10.0 139 14.5 414 10.7 578 14.4 
Washington D.C. Area(2)76 7.5 54 3.0 253 6.4 154 3.3 
East total181 17.5 193 17.5 667 17.1 732 17.7 
Total1,252 150.0 1,513 154.8 4,717 151.6 5,044 144.3 
(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 September 30, 2024As of September 30, 2023
Backlog
Units		Backlog
Dollar
Value		Average
Sales
Price		Backlog
Units		Backlog
Dollar
Value		Average
Sales
Price
Arizona351 $271,255 $773 316 $233,631 $739 
California698 549,851 788 1,178 892,158 757 
Nevada111 62,969 567 171 112,684 659 
Washington129 133,547 1,035 95 90,768 955 
West total1,289 1,017,622 789 1,760 1,329,241 755 
Colorado19 13,654 719 58 39,254 677 
Texas670 396,253 591 769 448,721 584 
Central total689 409,907 595 827 487,975 590 
Carolinas(1)170 96,330 567 359 171,820 479 
Washington D.C. Area(2)177 207,731 1,174 109 128,283 1,177 
East total347 304,061 876 468 300,103 641 
Total2,325 $1,731,590 $745 3,055 $2,117,319 $693 
September 30,December 31,
20242023
Lots Owned or Controlled:
Arizona2,028 2,394 
California10,564 10,148 
Nevada1,608 1,785 
Washington578 712 
West total14,778 15,039 
Colorado1,590 1,908 
Texas10,413 10,056 
Utah346 — 
Central total12,349 11,964 
Carolinas(1)4,751 4,038 
Florida256 — 
Washington D.C. Area(2)1,354 919 
East total6,361 4,957 
Total33,488 31,960 
September 30,December 31,
20242023
Lots by Ownership Type:
Lots owned17,153 18,739 
Lots controlled (3)16,335 13,221 
Total33,488 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 September 30, 2024 and December 31, 2023, lots controlled included lots that were under land option contracts or purchase contracts. As of September 30, 2024 and December 31, 2023, lots controlled for Central include 3,358 and 3,561 lots, respectively, and lots controlled for East include 29 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 September 30,
2024%2023%
(dollars in thousands)
Home sales revenue$1,113,681 100.0 %$825,295 100.0 %
Cost of home sales854,499 76.7 %641,074 77.7 %
Homebuilding gross margin259,182 23.3 %184,221 22.3 %
Add:  interest in cost of home sales37,687 3.4 %27,035 3.3 %
Add:  impairments and lot option abandonments1,074 0.1 %197 0.0 %
Adjusted homebuilding gross margin$297,943 26.8 %$211,453 25.6 %
Homebuilding gross margin percentage23.3 % 22.3 % 
Adjusted homebuilding gross margin percentage26.8 % 25.6 % 

Nine Months Ended September 30,
2024%2023%
(dollars in thousands)
Home sales revenue$3,165,042 100.0 %$2,412,777 100.0 %
Cost of home sales2,427,484 76.7 %1,881,191 78.0 %
Homebuilding gross margin737,558 23.3 %531,586 22.0 %
Add:  interest in cost of home sales107,330 3.4 %72,627 3.0 %
Add:  impairments and lot option abandonments2,444 0.1 %12,675 0.5 %
Adjusted homebuilding gross margin$847,332 26.8 %$616,888 25.6 %
Homebuilding gross margin percentage23.3 %22.0 %
Adjusted homebuilding gross margin percentage26.8 %25.6 %








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.
 
September 30, 2024December 31, 2023
Loans payable$275,914 $288,337 
Senior notes646,280 1,094,249 
Mortgage repurchase facilities75,465 — 
Total debt997,659 1,382,586 
Less: mortgage repurchase facilities(75,465)— 
Total homebuilding debt922,194 1,382,586 
Stockholders’ equity3,249,952 3,010,958 
Total capital$4,172,146 $4,393,544 
Ratio of homebuilding debt-to-capital(1)22.1 %31.5 %
Total homebuilding debt$922,194 $1,382,586 
Less: Cash and cash equivalents(675,957)(868,953)
Net homebuilding debt246,237 513,633 
Stockholders’ equity3,249,952 3,010,958 
Net capital$3,496,189 $3,524,591 
Ratio of net homebuilding debt-to-net capital(2)7.0 %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 September 30,Nine Months Ended September 30,
2024202320242023
(in thousands)
Net income available to common stockholders$111,759 $75,402 $328,816 $210,868 
Interest expense:
Interest incurred25,253 36,919 91,787 111,792 
Interest capitalized(25,253)(36,919)(91,787)(111,792)
Amortization of interest in cost of sales38,762 27,264 108,772 73,196 
Provision for income taxes39,788 22,942 112,599 71,764 
Depreciation and amortization8,548 6,884 23,572 20,066 
EBITDA198,857 132,492 573,759 375,894 
Amortization of stock-based compensation8,708 6,989 24,327 15,012 
Impairments and lot option abandonments1,074 197 2,444 12,675 
Adjusted EBITDA$208,639 $139,678 $600,530 $403,581 
 
Page 12
v3.24.3
Cover Page
Oct. 24, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 24, 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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