IRVINE, CA—Coming off it's 2014 merger with Weyerhaeuser Real Estate Co., TRI Pointe Group, Inc. has “continued to sell homes at a healthy pace,” with an absorption rate of 3.5 homes per community per month, compared to a rate of 2.6 homes per month in the same period in 2014.
The company recently announced results for the second quarter ended June 30.
The merger with Weyerhaeuser was completed July 7 of last year. Accordingly, legacy TRI Pointe's financial results are not included in the Generally Accepted Accounting Principles (“GAAP”) results. The company has appended Supplemental Combined Company Information to its second quarter reporting.
“I am extremely pleased with our company's execution this quarter”, commented CEO Doug Bauer. “TRI Pointe Group continued to sell homes at a healthy pace, with an absorption rate of 3.5 homes per community per month, compared to a rate of 2.6 homes per community per month in the same period in 2014. We also delivered on our previously stated guidance for backlog conversion and homebuilding gross margins. In addition, we closed the Pacific Highlands Ranch commercial site land sale which generated revenue of $53.0 million and $49.6 million of gross margin. These achievements resulted in a 68% year-over-year increase to earnings per share, and reflect our ongoing commitment to unlocking shareholder value through our traditional homebuilding operations and strategic land sales.”
Among the second quarter 2015 results, compared to the same period last year:
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Net income available to common shareholders was $54.9 million, or $0.34 per diluted share compared to $24.2 million, or $0.19 per diluted share
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New home orders increased to 1,238 compared to 763, an increase of 62%
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Active selling communities averaged 119.5 compared to 97.5
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New home orders per average selling community were 10.4 orders (3.5 monthly) compared to 7.8 orders (2.6 monthly), an increase of 33%
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Cancellation rate was consistent at 16%
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Backlog units of 1,998 homes with a dollar value increase of 79%, to $1.2 billion
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Average sales price in backlog increased 7% to $601,000
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Home sales revenue of $427.2 million, an increase of 38%
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New homes deliveries of 798, up 27%
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Average sales price of homes delivered grew 9% to $535,000
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Homebuilding gross margin percentage of 20.0%
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Excluding interest, impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 22.0%*
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Land and lot sales gross margin percentage of 82.9%
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SG&A expense as a percentage of homes sales revenue improved to 12.6% compared to 13.6%
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Ratios of debt and net debt to capital of 46.0% and 43.5%, respectively, at June 30 2015*
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Cash of $121.9 million and availability under unsecured revolving credit facility of $141.1 million
New home orders increased 62% to 1,238 homes for the second quarter of 2015, as compared to 763 homes for the same period in 2014. In addition, average active selling communities increased to 119.5 as compared to 97.5 for the same period in the prior year, mainly due to the addition of legacy TRI Pointe. The Company's overall absorption rate per average selling community for the three months ended June 30 2015 increased 33% to 10.4 orders (3.5 monthly) compared to 7.8 orders (2.6 monthly) during the same period in 2014.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
