Tri Pointe Homes, Inc. Reports 2024 Second Quarter Results

Источник: Nasdaq GlobeNewswire / 25 июл 2024 06:00:01 America/New_York

-Home Sales Revenue of $1.1 Billion-
-Homebuilding Gross Margin Percentage of 23.6%-
-Diluted Earnings Per Share of $1.25-
-Increased Dollar Value of Backlog to $2.0 Billion-
-Reduced Debt by $450 Million-
-Homebuilding Debt-to-Capital Ratio Reduced to Record Low of 22.9%-

INCLINE VILLAGE, Nev., July 25, 2024 (GLOBE NEWSWIRE) -- Tri Pointe Homes, Inc. (the “Company”) (NYSE:TPH) today announced results for the second quarter ended June 30, 2024.

“I am pleased to report another quarter of outstanding results, driven by our focus on expanding scale and efficiencies within our existing markets while building a foundation for future growth in our new markets,” said Doug Bauer, Tri Pointe Homes Chief Executive Officer. “We delivered 1,700 homes, resulting in home sales revenue of $1.1 billion, a 38% increase compared to the previous year. This strong revenue growth, fueled by the 45% increase in deliveries, resulted in net income of $118 million and diluted earnings per share of $1.25, increases of 94% and 108%, respectively, compared to the previous year.”

Mr. Bauer continued, “As we continue to build scale across our markets, and due to the strong demand and pricing power we have experienced in recent quarters, our homebuilding gross margin percentage increased 320 basis points year-over-year to 23.6%. Additionally, during the quarter, we redeemed $450 million of senior notes using cash on hand, which allowed us to reduce balance sheet debt and lower our homebuilding debt-to-capital ratio to a record low 22.9%, while maintaining strong liquidity of $1.2 billion, underscoring our commitment to fortifying our balance sheet.”

“Our organic start-up divisions in the Coastal Carolinas, Florida, and Utah are off to a strong start as we continue to attract talent and build land relationships in advance of our first deliveries,” said Tri Pointe Homes President and Chief Operating Officer, Tom Mitchell. “While we acknowledge that realizing the full value of our organic growth will require both capital investment and time, our cash flows continue to support this expansion and we see the benefits of geographic diversification. With ongoing demographic support and a persistent undersupply of homes, including the resale market, we believe we are in a strong position to utilize our capital to create significant value for our stakeholders.”

Results and Operational Data for Second Quarter 2024 and Comparisons to Second Quarter 2023

Net income available to common stockholders was $118.0 million, or $1.25 per diluted share, compared to $60.7 million, or $0.60 per diluted share
Home sales revenue of $1.1 billion compared to $819.1 million, an increase of 38%
- New home deliveries of 1,700 homes compared to 1,173 homes, an increase of 45%
- Average sales price of homes delivered of $666,000 compared to $698,000, a decrease of 5%
Homebuilding gross margin percentage of 23.6% compared to 20.4%, an increase of 320 basis points
- Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 27.1%*
SG&A expense as a percentage of home sales revenue of 11.0% compared to 11.9%, a decrease of 90 basis points
Net new home orders of 1,651 compared to 1,912, a decrease of 14%
Active selling communities averaged 152.5 compared to 140.3, an increase of 9%
- Net new home orders per average selling community were 10.8 orders (3.6 monthly) compared to 13.6 orders (4.5 monthly)
- Cancellation rate of 9% compared to 8%
Backlog units at quarter end of 2,692 homes compared to 2,765, a decrease of 3%
- Dollar value of backlog at quarter end of $2.0 billion compared to $1.9 billion, an increase of 4%
- Average sales price of homes in backlog at quarter end of $743,000 compared to $695,000, an increase of 7%
Redeemed and fully repaid the $450 million principal amount of 5.875% Senior Notes due June 2024
Ratios of homebuilding debt-to-capital and net homebuilding debt-to-net capital of 22.9% and 12.2%*, respectively, as of June 30, 2024
Repurchased 1,046,062 shares of common stock at a weighted average price per share of $35.08 for an aggregate dollar amount of $36.7 million in the three months ended June 30, 2024
Ended the second quarter of 2024 with total liquidity of $1.2 billion, including cash and cash equivalents of $492.9 million and $707.3 million of availability under our revolving credit facility

^*	^{See “Reconciliation of Non-GAAP Financial Measures”}

Outlook

For the third quarter, the Company anticipates delivering between 1,450 and 1,550 homes at an average sales price between $685,000 and $695,000. The Company expects homebuilding gross margin percentage to be in the range of 23.0% to 23.5% for the third quarter and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 11.0% to 11.5%. Finally, the Company expects its effective tax rate for the third quarter to be approximately 25.5%.

For the full year, the Company anticipates delivering between 6,300 and 6,500 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 23.0% to 23.5% for the full year and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 10.5% to 11.0%. 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, July 25, 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 Second 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 13747485. 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 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 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 June 30,											Six Months Ended June 30,
		2024			2023		Change			% Change			2024			2023		Change			% Change
Operating Data:	(unaudited)
Home sales revenue	$	1,133,008		$	819,077		$	313,931		38	%	$	2,051,361		$	1,587,482		$	463,879		29	%
Homebuilding gross margin	$	267,327		$	167,078		$	100,249		60	%	$	478,376		$	347,365		$	131,011		38	%
Homebuilding gross margin %		23.6	%		20.4	%		3.2	%				23.3	%		21.9	%		1.4	%
Adjusted homebuilding gross margin %*		27.1	%		24.9	%		2.2	%				26.8	%		25.5	%		1.3	%
SG&A expense	$	124,551		$	97,465		$	27,086		28	%	$	226,103		$	185,693		$	40,410		22	%
SG&A expense as a % of home sales revenue		11.0	%		11.9	%		(0.9	)%				11.0	%		11.7	%		(0.7	)%
Net income available to common stockholders	$	118,002		$	60,724		$	57,278		94	%	$	217,057		$	135,466		$	81,591		60	%
Adjusted EBITDA*	$	215,998		$	129,928		$	86,070		66	%	$	391,891		$	263,903		$	127,988		48	%
Interest incurred	$	30,378		$	37,394		$	(7,016	)	(19	)%	$	66,534		$	74,873		$	(8,339	)	(11	)%
Interest in cost of home sales	$	38,994		$	25,366		$	13,628		54	%	$	69,643		$	45,592		$	24,051		53	%

Other Data:
Net new home orders		1,651			1,912			(261	)	(14	)%		3,465			3,531			(66	)	(2	)%
New homes delivered		1,700			1,173			527		45	%		3,093			2,238			855		38	%
Average sales price of homes delivered	$	666		$	698		$	(32	)	(5	)%	$	663		$	709		$	(46	)	(6	)%
Cancellation rate		9	%		8	%		1	%				8	%		9	%		(1	)%
Average selling communities		152.5			140.3			12.2		9	%		152.7			138.4			14.3		10	%
Selling communities at end of period		153			145			8		6	%
Backlog (estimated dollar value)	$	1,999,852		$	1,922,895		$	76,957		4	%
Backlog (homes)		2,692			2,765			(73	)	(3	)%
Average sales price in backlog	$	743		$	695		$	48		7	%

	June 30,			December 31,						%
		2024			2023		Change			Change
Balance Sheet Data:	(unaudited)
Cash and cash equivalents	$	492,940		$	868,953		$	(376,013	)	(43	)%
Real estate inventories	$	3,465,811		$	3,337,483		$	128,328		4	%
Lots owned or controlled		34,037			31,960			2,077		6	%
Homes under construction ⁽¹⁾		3,457			3,088			369		12	%
Homes completed, unsold		246			263			(17	)	(6	)%
Total homebuilding debt	$	929,959		$	1,382,586		$	(452,627	)	(33	)%
Stockholders’ equity	$	3,139,484		$	3,010,958		$	128,526		4	%
Book capitalization	$	4,069,443		$	4,393,544		$	(324,101	)	(7	)%
Ratio of homebuilding debt-to-capital		22.9	%		31.5	%		(8.6	)%
Ratio of net homebuilding debt-to-net capital*		12.2	%		14.6	%		(2.4	)%

__________
⁽¹⁾Homes under construction included 34 and 69 models as of June 30, 2024 and December 31, 2023, respectively.
* See “Reconciliation of Non-GAAP Financial Measures”


CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts)

	June 30,		December 31,
	2024		2023
Assets	(unaudited)
Cash and cash equivalents	$	492,940	$	868,953
Receivables		111,637		224,636
Real estate inventories		3,465,811		3,337,483
Investments in unconsolidated entities		133,591		131,824
Mortgage loans held for sale		32,936		—
Goodwill and other intangible assets, net		156,603		156,603
Deferred tax assets, net		37,996		37,996
Other assets		164,684		157,093
Total assets	$	4,596,198	$	4,914,588

Liabilities
Accounts payable	$	57,410	$	64,833
Accrued expenses and other liabilities		437,237		453,531
Loans payable		283,929		288,337
Senior notes		646,030		1,094,249
Mortgage repurchase facilities		32,096		—
Total liabilities		1,456,702		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 June 30, 2024 and December 31, 2023, respectively		—		—
Common stock, $0.01 par value, 500,000,000 shares authorized; 93,862,218 and 95,530,512 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively		939		955
Additional paid-in capital		—		—
Retained earnings		3,138,545		3,010,003
Total stockholders’ equity		3,139,484		3,010,958
Noncontrolling interests		12		2,680
Total equity		3,139,496		3,013,638
Total liabilities and equity	$	4,596,198	$	4,914,588


CONSOLIDATED STATEMENT OF OPERATIONS (in thousands, except share and per share amounts) (unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
Homebuilding:
Home sales revenue	$	1,133,008		$	819,077		$	2,051,361		$	1,587,482
Land and lot sales revenue		4,160			7,086			11,228			8,792
Other operations revenue		782			796			1,569			1,470
Total revenues		1,137,950			826,959			2,064,158			1,597,744
Cost of home sales		865,681			651,999			1,572,985			1,240,117
Cost of land and lot sales		3,841			7,370			9,598			8,813
Other operations expense		765			782			1,530			1,447
Sales and marketing		56,804			43,241			107,028			85,103
General and administrative		67,747			54,224			119,075			100,590
Homebuilding income from operations		143,112			69,343			253,942			161,674
Equity in income of unconsolidated entities		99			42			156			269
Other income, net		9,934			11,093			25,160			18,697
Homebuilding income before income taxes		153,145			80,478			279,258			180,640
Financial Services:
Revenues		16,974			10,370			30,168			19,246
Expenses		10,890			7,405			19,617			13,236
Financial services income before income taxes		6,084			2,965			10,551			6,010
Income before income taxes		159,229			83,443			289,809			186,650
Provision for income taxes		(41,227	)		(21,472	)		(72,811	)		(48,822	)
Net income		118,002			61,971			216,998			137,828
Net income attributable to noncontrolling interests		—			(1,247	)		59			(2,362	)
Net income available to common stockholders	$	118,002		$	60,724		$	217,057		$	135,466
Earnings per share
Basic	$	1.25		$	0.61		$	2.29		$	1.35
Diluted	$	1.25		$	0.60		$	2.28		$	1.34
Weighted average shares outstanding
Basic		94,059,037			99,598,933			94,645,676			100,305,168
Diluted		94,740,019			100,634,964			95,305,469			101,184,993


MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY (dollars in thousands) (unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
	New Homes Delivered	Average Sales Price		New Homes Delivered	Average Sales Price		New Homes Delivered	Average Sales Price		New Homes Delivered	Average Sales Price
Arizona	140	$	712	195	$	765	277	$	724	330	$	773
California	570		762	352		798	987		766	691		813
Nevada	117		646	88		743	230		665	186		753
Washington	74		875	40		733	127		886	58		802
West total	901		748	675		778	1,621		754	1,265		793
Colorado	53		675	49		732	95		703	93		758
Texas	475		556	278		560	915		553	488		588
Central total	528		568	327		586	1,010		567	581		615
Carolinas(1)	208		489	142		483	382		477	317		458
Washington D.C. Area(2)	63		904	29		1,176	80		937	75		1,082
East total	271		586	171		600	462		556	392		577
Total	1,700	$	666	1,173	$	698	3,093	$	663	2,238	$	709

	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
	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
Arizona	182		15.2	189		13.7	338		13.6	306		13.4
California	576		42.2	787		49.2	1,189		44.1	1,488		51.6
Nevada	118		8.3	105		8.0	272		8.9	189		7.6
Washington	77		5.8	70		5.8	184		5.7	122		5.4
West total	953		71.5	1,151		76.7	1,983		72.3	2,105		78.0
Colorado	25		10.5	38		6.8	72		10.7	79		6.4
Texas	441		52.5	494		39.0	924		52.4	808		36.1
Central total	466		63.0	532		45.8	996		63.1	887		42.5
Carolinas(1)	130		11.5	188		14.3	309		11.4	439		14.5
Washington D.C. Area(2)	102		6.5	41		3.5	177		5.9	100		3.4
East total	232		18.0	229		17.8	486		17.3	539		17.9
Total	1,651		152.5	1,912		140.3	3,465		152.7	3,531		138.4

⁽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 June 30, 2024					As of June 30, 2023
	Backlog Units	Backlog Dollar Value		Average Sales Price		Backlog Units	Backlog Dollar Value		Average Sales Price
Arizona	320	$	245,870	$	768	354	$	276,167	$	780
California	900		724,667		805	1,095		797,480		728
Nevada	173		100,881		583	128		94,278		737
Washington	147		138,919		945	99		91,266		922
West total	1,540		1,210,337		786	1,676		1,259,191		751
Colorado	25		18,664		747	36		24,889		691
Texas	715		428,420		599	602		340,938		566
Central total	740		447,084		604	638		365,827		573
Carolinas(1)	209		115,638		553	342		156,759		458
Washington D.C. Area(2)	203		226,793		1,117	109		141,118		1,295
East total	412		342,431		831	451		297,877		660
Total	2,692	$	1,999,852	$	743	2,765	$	1,922,895	$	695

	June 30,	December 31,
	2024	2023
Lots Owned or Controlled:
Arizona	2,123		2,394
California	10,650		10,148
Nevada	1,579		1,785
Washington	698		712
West total	15,050		15,039
Colorado	1,849		1,908
Texas	10,700		10,056
Utah	156		—
Central total	12,705		11,964
Carolinas(1)	5,022		4,038
Washington D.C. Area(2)	1,260		919
East total	6,282		4,957
Total	34,037		31,960

	June 30,	December 31,
	2024	2023
Lots by Ownership Type:
Lots owned	17,824		18,739
Lots controlled (3)	16,213		13,221
Total	34,037		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 June 30, 2024 and December 31, 2023, lots controlled included lots that were under land option contracts or purchase contracts. As of June 30, 2024 and December 31, 2023, lots controlled for Central include 3,449 and 3,561 lots, respectively, and lots controlled for East include 47 and 71 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 June 30,
		2024		%			2023		%
	(dollars in thousands)
Home sales revenue	$	1,133,008		100.0	%	$	819,077		100.0	%
Cost of home sales		865,681		76.4	%		651,999		79.6	%
Homebuilding gross margin		267,327		23.6	%		167,078		20.4	%
Add: interest in cost of home sales		38,994		3.4	%		25,366		3.1	%
Add: impairments and lot option abandonments		968		0.1	%		11,761		1.4	%
Adjusted homebuilding gross margin	$	307,289		27.1	%	$	204,205		24.9	%
Homebuilding gross margin percentage		23.6	%				20.4	%
Adjusted homebuilding gross margin percentage		27.1	%				24.9	%

	Six Months Ended June 30,
		2024		%			2023		%
	(dollars in thousands)
Home sales revenue	$	2,051,361		100.0	%	$	1,587,482		100.0	%
Cost of home sales		1,572,985		76.7	%		1,240,117		78.1	%
Homebuilding gross margin		478,376		23.3	%		347,365		21.9	%
Add: interest in cost of home sales		69,643		3.4	%		45,592		2.9	%
Add: impairments and lot option abandonments		1,370		0.1	%		12,478		0.8	%
Adjusted homebuilding gross margin	$	549,389		26.8	%	$	405,435		25.5	%
Homebuilding gross margin percentage		23.3	%				21.9	%
Adjusted homebuilding gross margin percentage		26.8	%				25.5	%

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.

	June 30, 2024			December 31, 2023
Loans payable	$	283,929		$	288,337
Senior notes		646,030			1,094,249
Mortgage repurchase facilities		32,096			—
Total debt		962,055			1,382,586
Less: mortgage repurchase facilities		(32,096	)		—
Total homebuilding debt		929,959			1,382,586
Stockholders’ equity		3,139,484			3,010,958
Total capital	$	4,069,443		$	4,393,544
Ratio of homebuilding debt-to-capital(1)		22.9	%		31.5	%

Total homebuilding debt	$	929,959		$	1,382,586
Less: Cash and cash equivalents		(492,940	)		(868,953	)
Net homebuilding debt		437,019			513,633
Stockholders’ equity		3,139,484			3,010,958
Net capital	$	3,576,503		$	3,524,591
Ratio of net homebuilding debt-to-net capital(2)		12.2	%		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.

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 June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
	(in thousands)
Net income available to common stockholders	$	118,002		$	60,724		$	217,057		$	135,466
Interest expense:
Interest incurred		30,378			37,394			66,534			74,873
Interest capitalized		(30,378	)		(37,394	)		(66,534	)		(74,873	)
Amortization of interest in cost of sales		39,164			25,681			70,010			45,932
Provision for income taxes		41,227			21,472			72,811			48,822
Depreciation and amortization		7,697			6,128			15,024			13,182
EBITDA		206,090			114,005			374,902			243,402
Amortization of stock-based compensation		8,940			4,162			15,619			8,023
Impairments and lot option abandonments		968			11,761			1,370			12,478
Adjusted EBITDA	$	215,998		$	129,928		$	391,891		$	263,903

Tri Pointe Homes, Inc. Reports 2024 Second Quarter Results

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