• Tri Pointe Homes, Inc. Reports 2023 Third Quarter Results

    ソース: Nasdaq GlobeNewswire / 26 10 2023 05:00:23   America/Chicago

    -Net New Home Orders Increased 122% Year-Over-Year to 1,513- 
    -Active Selling Communities Increased 23% Year-Over-Year to 163- 
    -Home Sales Revenue of $825 Million- 
    -Homebuilding Gross Margin Percentage of 22.3%- 
    -Diluted Earnings Per Share of $0.76- 
    -Debt-to-Capital Ratio of 32.1% and Total Liquidity of $1.5 Billion-

    INCLINE VILLAGE, Nev., Oct. 26, 2023 (GLOBE NEWSWIRE) -- Tri Pointe Homes, Inc. (the “Company”) (NYSE:TPH) today announced results for the third quarter ended September 30, 2023.

    “Tri Pointe delivered a strong operational performance in the third quarter, surpassing our delivery guidance and generating home sales revenue of $825 million,” said Doug Bauer, Tri Pointe Homes Chief Executive Officer. “We were able to execute well through our backlog conversion, as well as our ability to sell and close move-in ready spec homes during the quarter, ultimately leading to $75.4 million in net income available to common stockholders, or $0.76 per diluted share. Despite the persistence of elevated mortgage rates, much of the third quarter demonstrated stronger seasonal demand than normal, due largely to the underlying fundamentals of our industry, as well as the severe lack of resale supply available on the market.”

    Mr. Bauer continued, “Our strategic focus remains on growing scale within our current markets, while also growing our market diversification through organic expansion or M&A opportunities. During the third quarter, we announced our organic entrance into the Salt Lake City, Utah market, which we view as having a diverse, strong, and growing economy coupled with a desirable quality of life, and we are very excited to commence operations this year.”

    “Consistent with our strategic initiatives for the year, our ability to remain disciplined with cost while normalizing our cycle times helped us deliver both strong top and bottom-line results for the third quarter,” said Tri Pointe Homes President and Chief Operating Officer Tom Mitchell. “As we move into the fourth quarter, our focus on operational efficiency remains unwavering. Further, with mortgage rates remaining elevated, we are acutely focused on the impact this has on affordability and buyer sentiment, and we are well-positioned to tactically implement the pricing and incentive strategies necessary to achieve our targeted sales goals.”

    Mr. Bauer concluded, “Our robust balance sheet and strong liquidity position not only enable us to navigate the current market dynamics with resilience, but also enable us to swiftly capitalize on emerging opportunities. As macroeconomic circumstances continue to unfold, we believe the backdrop for new housing remains positive, and Tri Pointe is well positioned to seize the opportunities which have been further exacerbated by the growing scarcity of resale supply.”

    Results and Operational Data for Third Quarter 2023 and Comparisons to Third Quarter 2022

    • Net income available to common stockholders was $75.4 million, or $0.76 per diluted share, compared to $149.2 million, or $1.45 per diluted share
    • Home sales revenue of $825.3 million compared to $1.1 billion, a decrease of 22%
      • New home deliveries of 1,223 homes compared to 1,463 homes, a decrease of 16%
      • Average sales price of homes delivered of $675,000 compared to $723,000, a decrease of 7%
    • Homebuilding gross margin percentage of 22.3% compared to 27.1%, a decrease of 480 basis points
      • Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 25.6%*
    • SG&A expense as a percentage of homes sales revenue of 12.3% compared to 9.1%, an increase of 320 basis points
    • Net new home orders of 1,513 compared to 681, an increase of 122%
    • Active selling communities averaged 154.8 compared to 128.3, an increase of 21%
      • Net new home orders per average selling community were 9.8 orders (3.3 monthly) compared to 5.3 orders (1.8 monthly)
      • Cancellation rate of 10% compared to 27%
    • Backlog units at quarter end of 3,055 homes compared to 3,044
      • Dollar value of backlog at quarter end of $2.1 billion compared to $2.4 billion, a decrease of 13%
      • Average sales price of homes in backlog at quarter end of $693,000 compared to $797,000, a decrease of 13%
    • Ratios of debt-to-capital and net debt-to-net capital of 32.1% and 15.4%*, respectively, as of September 30, 2023
    • Repurchased 1,753,045 shares of common stock at a weighted average price per share of $31.10 for an aggregate dollar amount of $54.5 million in the three months ended September 30, 2023
    • Ended the third quarter of 2023 with total liquidity of $1.5 billion, including cash and cash equivalents of $849.0 million and $699.9 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 $670,000 and $680,000. The Company expects homebuilding gross margin percentage to be in the range of 22.0% to 23.0% for the fourth quarter and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 10.0% to 11.0%. Finally, the Company expects its effective tax rate for the fourth quarter to be in the range of 25.5% to 26.0%.

    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 26, 2023. 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, 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 2023 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 13741533. An archive of the webcast will also be available on the Company’s website for a limited time.

    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 and a recognized leader in customer experience, innovative design, and environmentally responsible business practices. The company builds premium homes and communities in 10 states, 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 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 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
      


    KEY OPERATIONS AND FINANCIAL DATA
    (dollars in thousands)
    (unaudited)
        
     Three Months Ended September 30, Nine Months Ended September 30,
      2023   2022  Change % Change  2023   2022  Change % Change
      
    Operating Data:(unaudited)
    Home sales revenue$825,295  $1,057,491  $(232,196) (22)% $2,412,777  $2,787,386  $(374,609) (13)%
    Homebuilding gross margin$184,221  $286,343  $(102,122) (36)% $531,586  $754,226  $(222,640) (30)%
    Homebuilding gross margin % 22.3%  27.1% (4.8)%    22.0%  27.1% (5.1)%  
    Adjusted homebuilding gross margin %* 25.6%  29.9% (4.3)%    25.6%  29.7% (4.1)%  
    SG&A expense$101,233  $96,736  $4,497  5% $286,926  $272,783  $14,143  5%
    SG&A expense as a % of home sales revenue 12.3%  9.1%  3.2%    11.9%  9.8%  2.1%  
    Net income available to common stockholders$75,402  $149,226  $(73,824) (49)% $210,868  $373,087  $(162,219) (43)%
    Adjusted EBITDA*$139,678  $237,369  $(97,691) (41)% $403,581  $604,365  $(200,784) (33)%
    Interest incurred$36,919  $31,893  $5,026  16% $111,792  $89,235  $22,557  25%
    Interest in cost of home sales$27,035  $26,531  $504  2% $72,627  $68,559  $4,068  6%
                    
    Other Data:               
    Net new home orders 1,513   681   832  122%  5,044   3,933   1,111  28%
    New homes delivered 1,223   1,463   (240) (16)%  3,461   4,047   (586) (14)%
    Average sales price of homes delivered$675  $723  $(48) (7)% $697  $689  $8  1%
    Cancellation rate 10%  27% (17)%    9%  15% (6)%  
    Average selling communities 154.8   128.3   26.5  21%  144.3   120.7   23.6  20%
    Selling communities at end of period 163   133   30  23%        
    Backlog (estimated dollar value)$2,117,319  $2,427,301  $(309,982) (13)%        
    Backlog (homes) 3,055   3,044   11  0%        
    Average sales price in backlog$693  $797  $(104) (13)%        
                    
     September 30, December 31,            
      2023   2022  Change % Change        
    Balance Sheet Data:(unaudited)              
    Cash and cash equivalents$849,039  $889,664  $(40,625) (5)%        
    Real estate inventories$3,412,797  $3,173,849  $238,948  8%        
    Lots owned or controlled 32,964   33,794   (830) (2)%        
    Homes under construction(1) 3,558   2,373   1,185  50%        
    Homes completed, unsold 185   288   (103) (36)%        
    Debt$1,381,658  $1,378,051  $3,607  0%        
    Stockholders’ equity$2,923,397  $2,832,389  $91,008  3%        
    Book capitalization$4,305,055  $4,210,440  $94,615  2%        
    Ratio of debt-to-capital 32.1%  32.7% (0.6)%          
    Ratio of net debt-to-net capital* 15.4%  14.7%  0.7%          

    __________
    (1) Homes under construction included 68 and 78 models as of September 30, 2023 and December 31, 2022, respectively.
    * See “Reconciliation of Non-GAAP Financial Measures”


    CONSOLIDATED BALANCE SHEETS
    (in thousands, except share and per share amounts)
     September 30, December 31,
      2023  2022
    Assets(unaudited)  
    Cash and cash equivalents$849,039 $889,664
    Receivables 119,406  169,449
    Real estate inventories 3,412,797  3,173,849
    Investments in unconsolidated entities 139,384  129,837
    Goodwill and other intangible assets, net 156,603  156,603
    Deferred tax assets, net 34,850  34,851
    Other assets 158,152  165,687
    Total assets$4,870,231 $4,719,940
        
    Liabilities   
    Accounts payable$55,231 $62,324
    Accrued expenses and other liabilities 509,189  443,034
    Loans payable 288,337  287,427
    Senior notes 1,093,321  1,090,624
    Total liabilities 1,946,078  1,883,409
        
    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, 2023 and December 31, 2022, respectively —  —
    Common stock, $0.01 par value, 500,000,000 shares authorized; 97,341,774 and 101,017,708 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively 973  1,010
    Additional paid-in capital —  3,685
    Retained earnings 2,922,424  2,827,694
    Total stockholders’ equity 2,923,397  2,832,389
    Noncontrolling interests 756  4,142
    Total equity 2,924,153  2,836,531
    Total liabilities and equity$4,870,231 $4,719,940


    CONSOLIDATED STATEMENT OF OPERATIONS
    (in thousands, except share and per share amounts)
    (unaudited)
     
     Three Months Ended September 30, Nine Months Ended September 30,
      2023   2022   2023   2022 
    Homebuilding:       
    Home sales revenue$825,295  $1,057,491  $2,412,777  $2,787,386 
    Land and lot sales revenue 1,714   2,626   10,506   4,337 
    Other operations revenue 749   674   2,219   2,021 
    Total revenues 827,758   1,060,791   2,425,502   2,793,744 
    Cost of home sales 641,074   771,148   1,881,191   2,033,160 
    Cost of land and lot sales 1,474   1,256   10,287   2,075 
    Other operations expense 724   670   2,171   2,020 
    Sales and marketing 42,874   41,950   127,977   112,712 
    General and administrative 58,359   54,786   158,949   160,071 
    Homebuilding income from operations 83,253   190,981   244,927   483,706 
    Equity in income (loss) of unconsolidated entities 3   (122)  272   (34)
    Other income, net 11,664   463   30,361   852 
    Homebuilding income before income taxes 94,920   191,322   275,560   484,524 
    Financial Services:       
    Revenues 10,758   11,005   30,004   31,985 
    Expenses 6,127   5,827   19,363   17,457 
    Equity in income of unconsolidated entities —   —   —   46 
    Financial services income before income taxes 4,631   5,178   10,641   14,574 
    Income before income taxes 99,551   196,500   286,201   499,098 
    Provision for income taxes (22,942)  (45,923)  (71,764)  (122,084)
    Net income 76,609   150,577   214,437   377,014 
    Net income attributable to noncontrolling interests (1,207)  (1,351)  (3,569)  (3,927)
    Net income available to common stockholders$75,402  $149,226  $210,868  $373,087 
    Earnings per share       
    Basic$0.77  $1.47  $2.12  $3.60 
    Diluted$0.76  $1.45  $2.10  $3.57 
    Weighted average shares outstanding       
    Basic 98,018,498   101,242,708   99,534,570   103,555,717 
    Diluted 99,030,210   102,661,222   100,458,357   104,526,594 


    MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY
    (dollars in thousands)
    (unaudited)
     
     Three Months Ended September 30, Nine Months Ended September 30,
     2023 2022 2023 2022
     New
    Homes
    Delivered    		 Average
    Sales
    Price    		 New
    Homes
    Delivered    		 Average
    Sales
    Price    		 New
    Homes
    Delivered    		 Average
    Sales
    Price    		 New
    Homes
    Delivered    		 Average
    Sales
    Price
    Arizona167 $809 166 $732 497 $785 363 $733
    California425  683 636  698 1,116  764 1,729  690
    Nevada103  749 122  724 289  751 363  711
    Washington48  847 46  1,092 106  823 172  1,023
    West total743  731 970  773 2,008  770 2,627  742
    Colorado17  733 82  682 110  754 201  662
    Texas287  527 250  511 775  565 788  507
    Central total304  538 332  616 885  589 989  562
    Carolinas(1)122  445 80  462 439  454 152  458
    Washington D.C. Area(2)54  1,185 81  770 129  1,125 279  744
    East total176  672 161  638 568  607 431  657
    Total1,223 $675 1,463 $723 3,461 $697 4,047 $689
                    
     Three Months Ended September 30, Nine Months Ended September 30,
     2023 2022 2023 2022
     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
    Arizona129  14.0 74  13.5 435  13.6 484  13.5
    California508  48.8 275  53.7 1,996  50.6 1,577  47.5
    Nevada146  10.5 56  6.8 335  8.6 317  7.6
    Washington44  5.5 34  3.0 166  5.4 103  2.8
    West total827  78.8 439  77.0 2,932  78.2 2,481  71.4
    Colorado39  9.5 15  7.3 118  7.6 180  7.7
    Texas454  49.0 123  23.5 1,262  40.8 691  22.8
    Central total493  58.5 138  30.8 1,380  48.4 871  30.5
    Carolinas(1)139  14.5 76  13.7 578  14.4 372  11.3
    Washington D.C. Area(2)54  3.0 28  6.8 154  3.3 209  7.5
    East total193  17.5 104  20.5 732  17.7 581  18.8
    Total1,513  154.8 681  128.3 5,044  144.3 3,933  120.7

    (1) Carolinas comprises North Carolina and South Carolina.
    (2) Washington D.C. Area comprises Maryland, Virginia and the District of Columbia.


    MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY, continued
    (dollars in thousands)
    (unaudited)
     
     As of September 30, 2023 As of September 30, 2022
     Backlog
    Units    		 Backlog
    Dollar
    Value    		 Average
    Sales
    Price    		 Backlog
    Units    		 Backlog
    Dollar
    Value    		 Average
    Sales
    Price
    Arizona316 $233,631 $739 641 $531,135 $829
    California1,178  892,158  757 884  836,320  946
    Nevada171  112,684  659 280  232,850  832
    Washington95  90,768  955 60  48,387  806
    West total1,760  1,329,241  755 1,865  1,648,692  884
    Colorado58  39,254  677 163  128,733  790
    Texas769  448,721  584 539  346,530  643
    Central total827  487,975  590 702  475,263  677
    Carolinas(1)359  171,820  479 341  161,675  474
    Washington D.C. Area(2)109  128,283  1,177 136  141,671  1,042
    East total468  300,103  641 477  303,346  636
    Total3,055 $2,117,319 $693 3,044 $2,427,301 $797
                
     September 30, December 31,        
     2023  2022        
    Lots Owned or Controlled:           
    Arizona2,352  2,901        
    California11,206  11,399        
    Nevada1,901  1,634        
    Washington779  827        
    West total16,238  16,761        
    Colorado1,942  1,600        
    Texas10,047  10,361        
    Central total11,989  11,961        
    Carolinas(1)3,760  3,857        
    Washington D.C. Area(2)977  1,215        
    East total4,737  5,072        
    Total32,964  33,794        
                
     September 30, December 31,        
     2023  2022        
    Lots by Ownership Type:           
    Lots owned18,921  18,762        
    Lots controlled (3)14,043  15,032        
    Total32,964  33,794        

    (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, 2023 and December 31, 2022, lots controlled included lots that were under land option contracts or purchase contracts. As of September 30, 2023 and December 31, 2022, lots controlled for Central include 3,042 and 3,325 lots, respectively, and lots controlled for East include 86 and 141 lots, respectively, which represent our expected share of lots owned by our investments in unconsolidated land development joint ventures.

    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,
      2023  %  2022  %
      
     (dollars in thousands)
    Home sales revenue$825,295  100.0% $1,057,491  100.0%
    Cost of home sales 641,074  77.7%  771,148  72.9%
    Homebuilding gross margin 184,221  22.3%  286,343  27.1%
    Add:  interest in cost of home sales 27,035  3.3%  26,531  2.5%
    Add:  impairments and lot option abandonments 197  0.0%  3,034  0.3%
    Adjusted homebuilding gross margin$211,453  25.6% $315,908  29.9%
    Homebuilding gross margin percentage 22.3%    27.1%  
    Adjusted homebuilding gross margin percentage 25.6%    29.9%  


     Nine Months Ended September 30,
      2023  %  2022  %
      
     (dollars in thousands)
    Home sales revenue$2,412,777  100.0% $2,787,386  100.0%
    Cost of home sales 1,881,191  78.0%  2,033,160  72.9%
    Homebuilding gross margin 531,586  22.0%  754,226  27.1%
    Add:  interest in cost of home sales 72,627  3.0%  68,559  2.5%
    Add:  impairments and lot option abandonments 12,675  0.5%  4,495  0.2%
    Adjusted homebuilding gross margin$616,888  25.6% $827,280  29.7%
    Homebuilding gross margin percentage 22.0%    27.1%  
    Adjusted homebuilding gross margin percentage 25.6%    29.7%  

    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, 2023 December 31, 2022
    Loans payable$288,337  $287,427 
    Senior notes 1,093,321   1,090,624 
    Total debt 1,381,658   1,378,051 
    Stockholders’ equity 2,923,397   2,832,389 
    Total capital$4,305,055  $4,210,440 
    Ratio of debt-to-capital(1) 32.1%  32.7%
        
    Total debt$1,381,658  $1,378,051 
    Less: Cash and cash equivalents (849,039)  (889,664)
    Net debt 532,619   488,387 
    Stockholders’ equity 2,923,397   2,832,389 
    Net capital$3,456,016  $3,320,776 
    Ratio of net debt-to-net capital(2) 15.4%  14.7%

    __________
    (1) The ratio of debt-to-capital is computed as the quotient obtained by dividing total debt by the sum of total debt plus stockholders’ equity.
    (2) The ratio of net debt-to-net capital is computed as the quotient obtained by dividing net debt (which is total debt less cash and cash equivalents) by the sum of net debt plus stockholders’ equity.

    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,
      2023   2022   2023   2022 
      
     (in thousands)
    Net income available to common stockholders$75,402  $149,226  $210,868  $373,087 
    Interest expense:       
    Interest incurred 36,919   31,893   111,792   89,235 
    Interest capitalized (36,919)  (31,893)  (111,792)  (89,235)
    Amortization of interest in cost of sales 27,264   26,611   73,196   68,639 
    Provision for income taxes 22,942   45,923   71,764   122,084 
    Depreciation and amortization 6,884   6,615   20,066   18,641 
    EBITDA 132,492   228,375   375,894   582,451 
    Amortization of stock-based compensation 6,989   5,717   15,012   16,740 
    Impairments and lot option abandonments 197   3,277   12,675   5,174 
    Adjusted EBITDA$139,678  $237,369  $403,581  $604,365 

     


    Primary Logo

シェアする