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8-K - 8-K - Tri Pointe Homes, Inc. | d773817d8k.htm |
Investor Presentation
August 2014
Building a Best-in-Class Homebuilder
Exhibit 99.1 |
2
Forward Looking Statements / Additional Disclaimer
WRECO Financial Information Disclaimer
The unaudited selected historical financial data for WRECO included in this
presentation are summary only and are not necessarily indicative of the results
or
the
financial
condition
to
be
expected
for
the
remainder
of
the
year
or
any
future
date
or
period.
These
data
do
not
reflect
the
changes
that
WRECO
expects to experience in the future as a result of the recently completed
transactions with TRI Pointe, including, without limitation, the transfer of certain
assets and liabilities of WRECO that were excluded from the WRECO transaction and
changes in the financing, cost structure and personnel needs of the
combined
businesses.
Further,
the
historical
financial
statements
include
allocations
of
certain
Weyerhaeuser
corporate
general
and
administrative
expenses
and
these
allocations
may
not
be
indicative
of
the
actual
level
of
expense
that
would
have
been
incurred
by
WRECO
if
it
had
operated
as
an
independent company or of costs expected to be incurred in the future.
TRI Pointes Proxy Statement for its 2014 Annual Meeting of Stockholders,
filed with the Securities and Exchange Commission on May 20, 2014, includes:
(i) the unaudited consolidated financial statements of WRECO as of and for the
three months ended March 31, 2014 and for the three months ended March 31,
2013; (ii) the audited balance sheets of WRECO and its subsidiaries as of December 31, 2013 and 2012, and the related consolidated statements of
operations,
changes
in
equity,
and
cash
flows
for
each
of
the
years
in
the
three-year
period
ended
December
31,
2013;
and
(iii)
and
notes
thereto.
In
addition, the Risk Factors section of the Proxy Statement includes a discussion of
risks relating to TRI Pointe and WRECOs business and industry. Various statements contained
in this presentation, 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 projections and estimates concerning the timing and success of specific projects and
the Weyerhaeuser Real Estate Company (WRECO) transaction and our future production, revenues, income and capital spending. Our
forward-looking statements are generally accompanied by words such as estimate,
project, predict, believe, expect, intend, anticipate, potential, plan,
goal, will, or other words that convey future events or outcomes. The
forward-looking statements in this presentation speak only as of the date of this
presentation, and we disclaim any obligation to update these statements unless required by law, and we
caution you not to rely on them unduly. We have based these forward-looking
statements on our current expectations and assumptions about future events. While our management considers these expectations and
assumptions to be reasonable, they 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: economic changes either
nationally or in the markets in which we operate, including declines in employment, volatility of mortgage interest rates and inflation; a
downturn in the homebuilding industry; continued volatility and uncertainty in the credit markets and
broader financial markets; our future operating results and financial condition; our business
operations; changes in our business and investment strategy; availability of land to acquire and our ability to acquire such land on
favorable terms or at all; availability, terms and deployment of capital; continued or increased
disruption in the availability of mortgage financing or the number of foreclosures in the
market; shortages of or increased prices for labor, land or raw materials used in housing construction; delays in land development or home
construction resulting from adverse weather conditions or other events outside our control; the cost
and availability of insurance and surety bonds; changes in, or the failure or inability to
comply with, governmental laws and regulations; the timing of receipt of regulatory approvals and the opening of projects; the degree and
nature of our competition; our leverage and debt service obligations; our relationship, and actual and
potential conflicts of interest, with Starwood Capital Group; availability of qualified
personnel and our ability to retain our key personnel; our ability to integrate WRECO successfully; and additional factors discussed under
the sections captioned Risk Factors included in our annual and quarterly reports filed
with the Securities and Exchange Commission (SEC). |
Transaction Overview |
4
Transaction Summary
TRI
Pointe
issued
129.7
million
shares
to
Weyerhaeuser
shareholders
(1)
Immediately after the closing of the transaction, Weyerhaeuser and TRI Pointe
shareholders owned approximately 80.4% and 19.6%,
respectively,
of
the
combined
company
(2)
Weyerhaeuser
received
a
$739
million
cash
payment
as
part
of
the
transaction
funded
by
$900
million
in
senior
unsecured
notes recently priced at various rates / tenors
Tax-free to Weyerhaeuser shareholders
Transaction combines industry-leading management at TRI Pointe with WRECO's
strong local market franchises and management teams
Corporate name will be TRI Pointe while regional brands will be maintained
Central functions to be consolidated in Irvine HQ, with limited integration planned
at the WRECO homebuilding companies
Anticipate annual synergies of $21 million by the end of 2015 and $30 million
annually thereafter The combined company will focus on some of the most
attractive housing markets in the U.S. and have a combined land position of
approximately 31,000 lots owned or controlled Top
10
homebuilder
by
combined
equity
market
value
(3)
Growth-oriented, pure-play homebuilder represents attractive investment at
current point in the housing cycle (1)
Excluding shares to be issued on exercise or vesting of equity awards held by WRECO
employees that are being assumed by TPH in connection with the transaction.
(2)
At the closing of the transaction, outstanding equity awards of WRECO and TRI
Pointe employees represented 0.78% and 0.18%, respectively, of the then outstanding
TRI Pointe common stock on a fully diluted basis.
(3)
Equity market value of $2.1bn based on 161,332,533 shares outstanding at the
closing price of $13.28 on August 1, 2014. In November 2013, TRI Pointe Homes (TPH or
TRI Pointe) and Weyerhaeuser Company (Weyerhaeuser) entered into a
definitive agreement pursuant to which Weyerhaeuser Real Estate Company (WRECO) was
combined with TRI Pointe in a Reverse Morris Trust transaction |
Company Overview |
6
Best-in-Class Executive Leadership Team
Chairman and CEO of Starwood
Capital Group since 1991
Former Chairman and CEO of
Starwood Hotels & Resorts
Current Chairman and CEO of
Starwood Property Trust, Inc.
Barry S. Sternlicht
Chairman of the Board
Thomas Mitchell
President and COO
Douglas Bauer
Chief Executive Officer
Michael Grubbs
Chief Financial Officer
25 years of real estate and
homebuilding experience
Former President and COO of
William Lyon Homes
Previously, managed WLH
Northern California Division
25 years of real estate and
homebuilding experience
Former EVP and Southern
California Regional President at
William Lyon Homes
25 years of real estate and
homebuilding experience
Former SVP / CFO of William
Lyon Homes
Previously, real estate
accountant at Kenneth Leventhal
Operational Management Team
Pardee / TPH SoCal
Tom Mitchell,
Jon
Lash, & Tony Dolim
Combined Yrs in
Industry: 75
(1)
Winchester
Alan Shapiro
Yrs at WRECO: 16
Yrs in Industry: 29
Trendmaker
Will Holder
Yrs at WRECO: 21
Yrs in Industry: 21
Quadrant
Ken Krivanec
Yrs at WRECO: 13
Yrs in Industry: 25
Maracay
Andy Warren
Yrs at WRECO: 20
Yrs in Industry: 27
TPH Denver
Matt Osborn
Yrs at TPH: 2
Yrs in Industry: 19
TPH NoCal
Jeff Frankel
Yrs at TPH: 4
Yrs in Industry: 17
86
Employees
Working
together
for
over
20
years,
TRI
Pointe
senior
management
has
significant
experience
running
a
large, geographically diverse, growth-oriented public homebuilder. Deep
managerial talent at each operating division with key local relationships
supports dynamic tailored growth strategies. 80
Employees
143
Employees
156
Employees
366
Employees
53
Employees
26
Employees
(1)
Tom
Mitchell
is
a
founder
of
TRI
Pointe
and
has
over
25
years
of
industry
experience.
Jon
Lash
has
28
years
of
industry
experience,
all
at
WRECO.
Tony
Dolim
has 22 years of industry experience, including 7 years at WRECO.
|
7
TRI Pointe Standalone Business Overview
(1)
Lots owned or controlled includes land under a purchase or option contract.
(2)
Includes deposits on real estate.
(3)
As used in this document, LTM data means information for the twelve months period
ended June 30, 2014. LTM data have been derived by adding the data for
the
six
month
period
ended
June
30,
2014
to
the
data
for
the
twelve
month
period
ended
December
31,
2013
and
then
subtracting
the
data
for
the
six
month
period
ended
June
30,
2013.
LTM
data
may
not
be
indicative
for
the
results
that
may
be
expected
for
the
year
ended
December
31,
2014.
Geographic Footprint
Overview
Operating Segment Breakdown
Founded in 2009 by three partners who worked together for over
17 years at a notable Southwest regional builder
Next generation homebuilder unburdened by legacy issues and
focused on growth markets in the Southwestern U.S.
Backed by Barry Sternlicht and Starwood Capital in 2010 with a
$150mm equity commitment
Expanded into Colorado in 2012; opened first community in mid-
2013
Completed IPO in January 2013; provided additional $155 million
of growth capital
Headquartered in Irvine, CA with divisional offices in San Ramon,
CA and Denver, CO
As of June 30, 2014
Lots Owned or Controlled
(1)
3,828
Years of Supply (based on LTM closings)
8.5 Years
Inventory ($ value)
(2)
$542 million
6/30 LTM Total Revenue
(3)
$339 million
6/30 LTM Closings
452
6/30 LTM Home Sales Revenue
$336 million
6/30 LTM Homebuilding Gross Margin
23.1%
Employees
192
LTM Home Closings
3,828 Lots
452 Units
Key Metrics as of 6/30/2014:
Lots Owned or Controlled
(1)
LTM as of June 30, 2014
Closings:
Lots:
Northern California
Closings:
Lots:
291
1,713
Southern California
Closings:
Lots:
28
678
Colorado
Southern
California
64%
Northern
California
30%
Colorado
6%
Southern
California
45%
Northern
California
37%
Colorado
18%
133
1,437
|
8
Founded
in
1970,
WRECO
was
the
13
largest
homebuilder
in
the U.S. by
homebuilding revenue in 2013
Operates
five
subsidiaries
and
primary
brands
in
ten
key
markets
Key markets are Los Angeles/Ventura, San Diego, Inland
Empire, Las Vegas, Phoenix, Seattle, Houston, Tucson,
Richmond, and Washington, DC
Tailored approach to marketing and product development in
each
market
Each
subsidiary
managed
locally
with
differentiated
local
value
proposition
Extensive land development and entitlement capabilities adds
value
to
land
and
provides
flexibility
to
manage
larger
projects
by
selling lots to third-parties
WRECO Standalone Business Overview
Source:
Company filings and presentations.
(1)
Lots owned or controlled includes land under a purchase or option contract and
excludes lots associated with Coyote Springs. (2)
Includes deposits on real estate.
(3)
As used in this document, LTM data means information for the twelve months period
ended June 30, 2014. LTM data have been derived by adding the data for the
six month period ended June 30, 2014 to the data for the twelve month period ended December 31, 2013 and then subtracting the data for the six month
period ended June 30, 2013. LTM data may not be indicative for the results that may
be expected for the year ended December 31, 2014. Lots Owned or Controlled
(1)
LTM Home Closings
Overview
Geographic Footprint
Lots Owned or Controlled
(1)
26,982
Years of Supply (based on LTM closings)
9.1 Years
Inventory ($ value)
(2)
$1.5 billion
6/30 LTM Total Revenue
(3)
$1.4 billion
6/30 LTM Closings
2,976
6/30 LTM Home Sales Revenue
$1.3 billion
6/30 LTM Homebuilding Gross Margin
22.1%
Employees
749
Operating Segment Breakdown
Key Metrics as 6/30/2014:
26,982 Lots
2,976 Units
As of June 30, 2014
LTM as of June 30, 2014
Maracay
8%
Pardee
68%
Quadrant
6%
Trendmaker
7%
Winchester
11%
Maracay
17%
Pardee
38%
Quadrant
12%
Trendmaker
19%
Winchester
14%
Closings:
Lots:
1,510 342
Closings: 1,138
Lots:
18,313 Closings:
Lots:
2,072 515
Closings:
Lots:
2,044 576
Closings:
Lots:
3,043 405
th |
9
Leading Brand Names Targeted to Specific Markets
Market: Greater Puget Sound Area
LTM Single-Family Closings: 342
Lots Owned or Controlled: 1,510
Markets: Los Angeles/Ventura, Inland
Empire, San Diego, Las Vegas
LTM Single-Family Closings: 1,138
Lots Owned or Controlled: 18,313
Markets: Phoenix, Tucson
LTM Single-Family Closings: 515
Lots Owned or Controlled: 2,072
Market: Houston
LTM Single-Family Closings: 576
Lots Owned or Controlled: 2,044
Markets: Washington DC, Richmond
LTM Single-Family Closings: 405
Lots Owned or Controlled: 3,043
Note:
All
lots
owned
or
controlled
as
well
as
LTM
closings
as
of
June
30,
2014.
Markets:
Orange
County,
Los
Angeles,
San Diego, San Francisco Bay Area,
Denver
LTM Single-Family Closings: 452
Lots Owned or Controlled: 3,828
Combined Lots Owned or Controlled: 30,810
Combined LTM Single-Family Closings: 3,428 |
10
Synergy Opportunity is Meaningful
Purchasing leverage with increased scale
Centralized administrative functions in Irvine HQ, reduction of duplication
Opportunity to establish ancillary operations (mortgage, insurance, escrow)
Limited integration risk due to strong local market leadership teams
Strategic opportunity exists to apply key homebuilding best practices across the
companies TRI Pointe expects to achieve annual synergies of $21mm by 2015 and
$30mm annually thereafter. Additionally, there is a significant
opportunity to enhance stockholder value through executing a focused and
disciplined homebuilding strategy. |
Investment Highlights |
12
A Powerful Combination of Homebuilding Brands
(1)
Based on 161,332,533 shares outstanding at the closing price of $13.28 on August 1,
2014. 1
2
3
4
5
6
7
8
Complementary Footprint: Merchant Building Model with Long California Land
Position Premium Brands and Quality Product Enhance Strong Partnerships With
Land Owners Core Focus on Move-Up Segment with Expertise Across a Broad
Range of Products Leadership Positions and Differentiated Strategies in Long
Term Growth Markets Development Capabilities and Operating Efficiency Drive
Attractive Margin Profile Balance Sheet Structured to Have Conservative
Leverage and Liquidity for Growth Significant Land Supply to Fuel Growth at the Right Point in
the Housing Recovery Equity Market
Value of ~$2.1bn
Best-in-Class Management Team Leading a Top 10 National Homebuilder with Combined (1)
|
13
Top 10 National Homebuilder
Source:
Company filings and FactSet. Market data as of August 1, 2014
(1)
Excluding shares to be issued on exercise or vesting of equity awards held by
WRECO employees that are being assumed by TPH in connection with the
transactions. Based on 161,332,533 shares outstanding at the closing price of $13.28 on August 1, 2014.
Equity Market Capitalization
LTM Closings
Companies with market capitalization greater than $1bn ($ in billions)
Companies with market capitalization greater than $1bn
1
#12
#8
(1) |
Significant Land Supply to Fuel Growth
Combined Lot Position
Combined Land Supply at High End of Peers
TRI Pointe
WRECO
Combined Company
Market
Owned
Controlled
Owned
Controlled
Total Lots
% Owned
Southern California
1,267
446
14,781
74
16,568
96.9%
Northern California
932
505
1,372
--
2,809
82.0%
Colorado
405
273
--
--
678
59.7%
Washington, D.C.
(1)
--
--
2,066
977
3,043
67.9%
Arizona
--
--
1,289
783
2,072
62.2%
Nevada
--
--
1,480
606
2,086
70.9%
Texas
--
--
673
1,371
2,044
32.9%
Washington
--
--
1,025
485
1,510
67.9%
Total
2,604
1,224
22,686
4,296
30,810
82.1%
Median: 7.5 years
As of June 30, 2014
Geographic Breakdown
2
(1)
(2)
Combined lot position divided by combined company LTM single family closings of
3,428. Includes lots in the greater Washington D.C. area as well as lots
acquired for expansion into the Richmond, VA market. Based on LTM closings as of June 30,
2014 (in years); Companies with market capitalization greater than $1bn
14 |
15
Complementary California Footprint
16,227 lots, 99% owned
Seasoned team with substantial land
development and entitlement expertise
Land position creates opportunity for volume
growth and optionality for lot sales to other
builders
Strong positions in San Diego, Los Angeles /
Ventura and Inland Empire
PARDEE
Inland Empire
PARDEE
San Diego
TRI POINTE
Southern California
TRI POINTE
Northern California
Primary California Markets
~3,150 lots, majority in Southern California, with
~70% owned / ~30% controlled
Predominantly in highly desirable coastal markets
Merchant builder model focused on predictable
cash flow and earnings
Strong and growing presence in Northern
California markets
3
PARDEE
Los Angeles / Ventura |
Important Land Owner and Developer Partnerships
Diverse product expertise and premium brands will continue to make the combined
company an attractive homebuilding partner for master plan communities
Entitlement, land development and community planning expertise, which adds value to
land through the development cycle
4
16 |
Lifestyle Builder Focused on Move-Up Segment
Quality Product Across the Spectrum
U.S. 5-Year Forecasted vs. LTM Demand
Average Selling Price
(Last Reported Quarter, $ in 000s, companies with market cap >
$1.0bn) WRECO
Distribution of potential demand by price range
Dist. of actual new home closings over LTM by price range
Chantrea, San Jose
Woodson, Playa Vista
Sendero,
Rancho Mission Viejo
Aldea, Temecula
TRI Pointe
Median: $368
Source:
Company filings and Hanley Wood.
Alta Del Mar, San Diego
Montelena, Phoenix
Tehaleh, Puyallup
Heatheridge, Santa
Clarita
Entry-Level
Detached
Entry-Level
Attached
Move-Up
Executive
Level
17
5 |
Leadership Positions in Long Term Growth Markets
Based on 2013 total permits
Source:
Based on Hanley Wood data for 12 months ended December 31, 2013.
Overall
Target Segment
Location
Position
Position
Definition
Pardee Homes
San Diego
#1
#1
$650K
$1.25MM
LA County
#15
#11
$450K
$700K
Inland Empire
#5
#1
$200K
$350K
Las Vegas
#9
#8
$200K
$550K
Maracay Homes
Phoenix
#11
#8
$200K
$450K
Quadrant Homes
Seattle
#9
#6
$250K
$450K
Trendmaker Homes
Houston
#18
#4
$301K
$750K
Winchester Homes
Washington, DC
#11
#5
$450K
$850K
TRI Pointe Homes
Southern California
$300K
$1.5MM
Northern California
$400K
$2.0MM
Denver, CO
$300K
$650K
Housing Permits as % of Peak
Leading Local Presence
Seattle
U.S. Average
Las Vegas
San Diego
Long Term Growth Markets
Dec.
2013
Dec.
2018
Change(%)
YoY Change (%)
Houston
Riverside
U.S. Average
Seattle
John Burns Home Value Index
Source: John Burns Real Estate Consulting, LLC (data through April 2014; published
May 2014) Source: John Burns Real Estate Consulting, LLC (data through April
2014; published May 2014) 18
6 |
(1)
Attractive Gross Margin Profile
Entitlement and development expertise enhance margin potential
Long land position enables optionality for land sales to optimize cash flow and
profit Focus on efficient operating cost structure ensures profitability
flows through to bottom line Synergy opportunity will further enhance margin
profile Source:
Company filings.
(1)
Excludes purchase accounting adjustments.
LTM Homebuilding Gross Margin
Companies with market capitalization greater than $1bn
19
7 |
Prudent Capitalization To Invest in Recovery
Pro forma Debt-to-Capital ratio of 42%, below peer median
Expected new revolving credit facility to provide liquidity to invest in growth
opportunities Debt-to-Capital
(1)
Median: 48.3%
Most recent quarter; Companies with market capitalization greater than $1bn
Source:
Based on last reported company filings as of August 1, 2014.
Note:
Balance sheet data as of most recent available filings and are not necessarily as
of the same date. (1)
The ratio of Debt-to-Capital is the quotient obtained by dividing total
debt by the sum of book value of equity and total debt (PF TPH as of March 31, 2014).
20
8 |
Financial Overview |
Combined Financial Summary
Home Closings
(1)
Home Sales Revenue
(1)
($ in millions)
Homebuilding Gross Profit
(1)(4)
Adj. EBITDA
(2)(3)(4)
($ in millions)
($ in millions)
Source:
Company filings.
%
Margin
21.7%
20.1%
%
Margin
11.1%
13.5%
13.7%
22.0%
22
(1)
Excludes fee building operations for TRI Pointe and land sales operations for WRECO
(2)
Adjusted EBITDA adjusted for restructuring charges, impairment charges, and stock based compensation.
(3)
See Reconciliation of Non-GAAP Financial Measures beginning on page 35.
(4)
Excludes purchase accounting and other pro forma adjustments. |
23
Second Quarter 2014 Financial Results
TRI Pointe
Key Highlights
WRECO
Key Highlights
Significant increase in orders and closings driven by
growth in community count
Increased ASP as a result of pricing power and shift in mix
Meaningful growth in pre-tax income
Increased market share in key markets
Average closing prices rose 22% y-o-y
Backlog dollar value increased despite softer orders
Pre-tax income more than doubled y-o-y
(1)
($ in millions)
2Q14
2Q13
Y-O-Y Change
Orders
190
131
45.0%
Closings
103
91
13.2%
ASP ($ in 000's)
$848
$522
62.4%
Total Revenue
(1)
$87.3
$47.5
83.8%
Total Gross Margin
(1)
23.7%
19.3%
440bps
Pre-Tax Income
$10.4
$3.6
188.9%
($ in millions)
2Q14
2Q13
Y-O-Y Change
Orders
763
947
(19.4%)
Closings
628
636
(1.3%)
ASP ($ in 000's)
$493
$405
21.7%
Total Revenue
$342.6
$267.8
27.9%
Total Gross Margin
21.8%
21.1%
70bps
Pre-Tax Income
$30.0
$13.3
125.6%
Excludes fee building operations in 2Q13. |
24
Balance Sheet Structured to Have Conservative Leverage and Liquidity for Growth
Industry-Leading Management Plus Strong Local Market Presence
Portfolio of Quality Brands with Leadership Positions in Long-Term Growth
Markets Top 10 National Homebuilder
A Powerful Combination of Homebuilding Brands
Significant Land Supply to Fuel Growth at the Right Point in the Housing Recovery |
Appendix |
26
WRECO Supplemental Financial Data
Unaudited
Dollars in thousands
(1)
For the periods ending 3/31/2012 to 3/31/2014, this balance includes amounts that were transferred to
Weyerhaeuser and therefore excluded from the transaction between WRECO and Tri Pointe. (2)
Lots controlled include lots under purchase agreements or options contracts. TRI
Pointes Proxy Statement for its 2014 Annual Meeting of Stockholders, filed with the Securities and Exchange Commission on May 20, 2014, includes: (i) the unaudited
consolidated financial statements of WRECO as of and for the three months ended March 31, 2014 and for
the three months ended March 31, 2013; (ii) the audited balance sheets of WRECO and its
subsidiaries as of December 31, 2013 and 2012, and the related consolidated statements of operations, changes in equity, and cash
flows for each of the years in the three-year period ended December 31, 2013; and (iii) and notes
thereto. In addition, the Risk Factors section of the Proxy Statement includes a
discussion of risks relating to TRI Pointe and WRECOs business and industry.
The unaudited selected historical financial data for WRECO included in this presentation are summary
only and are not necessarily indicative of the results or the financial condition to be expected
for the remainder of the year or any future date or period. These data do not reflect the changes that WRECO expects to experience in the future
as a result of the recently completed transactions with TRI Pointe, including, without limitation, the
transfer of certain assets and liabilities of WRECO that were excluded from the WRECO
transaction and changes in the financing, cost structure and personnel needs of the combined businesses. Further, the historical financial statements
include allocations of certain Weyerhaeuser corporate general and administrative expenses and these
allocations may not be indicative of the actual level of expense that would have been incurred
by WRECO if it had operated as an independent company or of costs expected to be incurred in the future.
12 Months
12 Months
Six Months
Ended
Ended
Ended
March 31,
June 30,
September 30,
December 31,
December 31,
March 31,
June 30,
September 30,
December 31,
December 31,
March 31,
June 30,
June 30,
2012
2012
2012
2012
2012
2013
2013
2013
2013
2013
2014
2014
2014
Operating Data:
Single-family home sales
131,377
$
190,003
$
228,771
$
320,445
$
870,596
$
182,381
$
257,648
$
304,569
$
473,832
$
1,218,430
$
241,902
$
309,608
$
551,510
$
Single-family gross margin
22,584
$
36,634
$
53,308
$
64,173
$
176,699
$
35,473
$
55,640
$
67,880
$
109,157
$
268,150
$
50,633
$
66,898
$
117,531
$
Single-family gross margin %
17.2%
19.3%
23.3%
20.0%
20.3%
19.4%
21.6%
22.3%
23.0%
22.0%
20.9%
21.6%
21.3%
SG&A expense
32,119
$
33,986
$
35,752
$
51,748
$
153,605
$
36,658
$
41,559
$
44,230
$
46,318
$
168,765
$
38,910
$
41,983
$
80,893
$
SG&A expense as a % of home sales
24.4%
17.9%
15.6%
16.1%
17.6%
20.1%
16.1%
14.5%
9.8%
13.9%
16.1%
13.6%
14.7%
Other Data:
Net new home orders
697
764
637
567
2,665
820
947
767
521
3,055
667
763
1,430
New homes delivered
349
508
615
842
2,314
463
636
768
1,072
2,939
508
628
1,136
Average selling price of homes delivered
376
$
374
$
372
$
381
$
376
$
394
$
405
$
397
$
442
$
415
$
476
$
493
$
485
$
Average selling communities
73.3
74.7
71.3
67.7
71.8
75.0
85.0
91.7
89.0
86.0
90.7
99.0
94.8
Selling communities at end of period
77.0
74.0
65.0
68.0
68.0
80.0
88.0
93.0
89.0
89.0
93.0
100.0
100.0
Backlog (estimated dollar value)
288,115
$
408,772
$
415,173
$
342,497
$
342,497
$
508,849
$
665,880
$
711,765
$
507,064
$
507,064
$
594,550
$
670,225
$
670,225
$
Backlog (homes)
778
1,034
1,056
781
781
1,138
1,449
1,448
897
897
1,056
1,191
1,191
Balance Sheet Data:
Total Assets
1,954,670
$
1,929,894
$
1,978,103
$
1,999,537
$
1,999,537
$
2,053,187
$
2,129,795
$
2,186,059
$
1,910,464
$
1,910,464
$
1,941,998
$
2,807,503
$
2,807,503
$
Inventory (1)
1,549,246
$
1,543,431
$
1,589,321
$
1,609,485
$
1,609,485
$
1,653,817
$
1,722,987
$
1,782,548
$
1,421,986
$
1,421,986
$
1,500,608
$
1,546,100
$
1,546,100
$
Shareholder interest
885,803
$
895,293
$
904,130
$
953,779
$
953,779
$
951,769
$
954,952
$
974,557
$
797,096
$
797,096
$
806,415
$
840,216
$
840,216
$
Lots Owned (1)
35,159
34,765
34,669
34,207
34,207
34,252
33,978
32,786
33,402
33,402
33,727
22,686
22,686
Lots Controlled (1)(2)
63,675
60,073
59,913
60,090
60,090
60,690
61,096
61,692
61,310
61,310
60,760
4,296
4,296
Three months Ended
Three months Ended
Three Months Ended |
27
WRECO Supplemental Financial Data (contd)
Maracay Project Table
Six Months
Ending
6/30/2014
County, Project, City
Year of
First
Delivery
Total
Number of
Homes
Cumulative
Homes
Delivered
Lots Owned
Backlog
Homes
Delivered
Sales Price
Range (in
000's)
Phoenix
Maricopa County:
Verrado, Buckeye
Verrado
2012
73
68
5
1
4
$222 -
$287
Verrado Tilden
2014
29
-
29
6
-
$239 -
$304
Verrado Palisade
2014
63
-
63
-
-
$305 -
$378
Verrado Victory
2015
98
-
98
-
-
$351 -
$403
Artesian Ranch, Chandler
2013
55
23
32
4
15
$348 -
$404
Vaquero Ranch , Chandler
2013
45
30
15
6
19
$309 -
$389
Maracay at Layton Lakes, Chandler
2015
47
-
47
$459 -
$499
Lyon's Gate, Gilbert
2013
46
43
3
2
14
$293 -
$373
Bridges of Gilbert, Gilbert
Arch Crossing at Bridges of Gilbert
2014
40
11
29
9
11
$271 -
$336
Trestle Place at Bridges of Gilbert
2014
37
14
23
7
14
$338 -
$415
Palm Valley, Goodyear
Calderra at Palm Valley
2013
59
46
13
4
15
$269 -
$346
Los Vientos at Palm Valley
2013
49
36
13
12
9
$331 -
$355
Savannah, Litchfield Park
2012
70
69
1
3
$209 -
$330
Eastmark, Mesa
Kinetic Point at Eastmark
2013
80
22
58
4
14
$274 -
$354
Lumiere Garden at Eastmark
2013
85
17
68
13
13
$313 -
$382
The Reserve at Plaza Del Rio, Peoria
2013
162
35
127
10
19
$203 -
$245
Montelena, Queen Creek
2013
59
40
19
7
8
$344 -
$447
The Preserve at Hastings Farms, Queen Creek
2014
89
-
89
14
$283 -
$359
Villagio, Queen Creek
2013
135
44
91
8
14
$274 -
$332
Maracay at Northlands, Peoria
2014
10
-
10
4
$312 -
$393
Phoenix Total
1,331
498
833
111
172
Tucson
Pima County:
Deseo at Sabino Canyon, Tucson
2014
39
7
32
17
7
$419 -
$505
Dove Mountain Preserve, Marana
2012
67
66
1
1
11
$198 -
$221
Rancho Del Cobre , Tucson
2014
68
-
68
12
$374 -
$452
Rancho Vistoso, Oro Valley
2016
342
-
342
$254 -
$444
Tortolita Vistas, Marana
2014
13
-
13
8
$439 -
$506
Other:
Closed Communities
-
-
-
-
2
Tucson Total
529
73
456
38
20
Grand Totals:
1,860
571
1,289
149
192
As of June 30, 2014 |
Six Months
Ending
6/30/2014
County, Project, City
Year of
First
Delivery
Total
Number of
Homes
Cumulative
Homes
Delivered
Lots Owned
Backlog
Homes
Delivered
Sales Price
Range (in
000's)
Washington
King County:
Sonata Hill, Auburn
2014
71
-
71
3
-
$320 - $370
Filbert Glen, Bothell
2015
16
-
16
-
-
$475 - $560
Hawthorne, Duvall
2013
30
30
-
-
13
N/A
Wynstone, Federal Way
Wynstone East
2013
57
40
17
9
18
$335 - $423
Wynstone Short Plat
TBD
4
-
4
-
-
TBD
Garrison Glen, Kent
2014
30
1
29
5
1
$380 - $450
Beclan Place, Renton
2013
30
18
12
9
14
$593 - $593
Woodland, Woodinville
2014
23
-
23
13
-
$556 - $661
Hedgewood, Redmond
2015
12
-
12
-
-
$649 - $757
Kirkmond, Redmond
2015
41
-
41
-
-
$469 - $782
Evoke Product Line, Various
2013
50
2
48
23
1
$769 - $1,600
Urban Product Line, Various
2015
79
-
79
-
-
$333 - $570
Kitsap County:
McCormick Meadows, Port Orchard
2012
167
63
104
8
14
$264- $341
Mountain Aire, Poulsbo
2015
145
-
145
-
-
$310- $373
Vinland Pointe, Poulsbo
2013
90
25
65
10
8
$314 - $355
Pierce County:
Tehaleh, Bonney Lake
2013
80
37
43
14
10
$279 - $330
Ridge at Gig Harbor, Gig Harbor
2008
120
120
-
-
3
$265 - $295
Harbor Hill S9 & S8, Gig Harbor
2014
40
-
40
12
-
$356 - $430
Highlands Ridge, Puyallup
2012
46
38
8
2
8
$290 - $355
Chambers Ridge, Tacoma
2014
24
-
24
2
-
$480 - $525
Skagit County:
Skagit Highlands, Mt Vernon
Skagit Highlands East
2007
423
342
81
8
14
$220 - $264
Skagit Pod D (lots held for sale)
TBD
11
-
11
-
-
TBD
Skagit Pod E
TBD
4
-
4
-
-
TBD
Snohomish County:
King's Corner, Bothell
2013
116
20
96
23
15
$440 - $544
King's Corner, Bothell (lots held for sale)
2016
29
-
29
-
-
$306 - $370
Sonterra, Lake Stevens
2013
44
28
16
12
17
$362 - $480
Thurston:
Campus Willows, Lacey
2012
50
43
7
2
9
$264 - $280
Grand Totals:
1,832
807
1,025
155
145
As of June 30, 2014
WRECO Supplemental Financial Data (contd)
Quadrant Project Table
28 |
29
WRECO Supplemental Financial Data (contd)
Trendmaker Project Table
Six Months
Ending
6/30/2014
County, Project, City
Year of
First
Delivery
Total
Number of
Homes
Cumulative
Homes
Delivered
Lots Owned
Backlog
Homes
Delivered
Sales Price
Range (in
000's)
Texas
Brazoria County:
Sedona Lakes, Manvel
2014
11
-
11
2
-
$446 -
$496
Southern Trails, Pearland
2014
16
3
13
10
3
$486 -
$596
Fort Bend County:
Cross Creek Ranch, Fulshear
2013
293
114
179
55
93
$372 -
$835
Cinco Ranch, Katy
2012
63
46
17
14
23
$317 -
$368
Sienna Plantation, Missouri City
2013
57
13
44
10
7
$548 -
$656
Lakes of Bella Terra, Richmond
2013
72
36
36
6
8
$458 -
$611
Villas at Aliana, Richmond
2013
39
27
12
3
16
$394 -
$435
Riverstone, Sugar Land
2012
85
32
53
39
18
$357 -
$1022
The Townhomes at Imperial, Sugar Land
2014
27
-
27
-
-
$311 -
$408
Galveston County:
Harborwalk, Hitchcock
2014
6
-
6
4
-
$552 -
$591
Harris County:
Bridgeland
Living
Views,
Cypress
2013
24
22
2
2
5
$638 -
$683
Fairfield, Cypress
2010
17
16
1
-
20
$411 -
$559
Lakes of Fairhaven, Cypress
2008
220
186
34
25
27
$510 -
$690
Towne Lake Living Views, Cypress
2010
25
4
21
2
5
$427 -
$522
Calumet Townhomes, Houston
2014
4
-
4
-
-
$650 -
$685
Victory Lakes, League City
2008
-
-
-
-
2
N/A
Montgomery County:
Barton Woods, Conroe
2013
52
18
34
4
10
$377 -
$581
Villas at Oakhurst, Porter
2013
45
23
22
8
14
$367 -
$408
Woodtrace, Woodtrace
2014
4
-
4
-
-
$454 -
$520
Bender's Landing Estates, Spring
2014
104
-
104
2
-
$470 -
$613
Other:
Avanti Custom Homes
2007
93
64
29
34
6
$410 -
$643
Texas Casual Cottages
2010
99
79
20
42
12
$190 -
$466
Grand Totals:
1,356
683
673
262
269
As of June 30, 2014 |
Six Months
Ending
6/30/2014
County, Project, City
Year of
First
Delivery
Total
Number of
Homes
Cumulative
Homes
Delivered
Lots
Owned
Backlog
Homes
Delivered
Sales Price
Range (in 000's)
Maryland
Anne Arundel County:
Hawthornes Grant, Arnold
2014
15
5
10
2
5
$430 - $435
Hawthornes Grant, Arnold
N/A
-
-
55
-
-
N/A
Watson's Glen, Millersville
Watson's Glen I
2015
48
-
48
-
-
$396 - $411
Frederick County:
Landsdale, Monrovia
-
Landsdale Village Singles
2015
125
-
125
-
-
$490 - $600
Landsdale Lifestyle Singles
2015
97
-
97
2
-
$535 - $635
Landsdale Everson Townhomes
2015
100
-
100
-
-
$350 - $375
Landsdale TND Neo Everson SFD
2015
77
-
77
-
-
$480 - $595
Howard County:
-
Walnut Creek, Ellicott City
2014
11
3
8
7
3
$990 - $1,268
Montgomery County:
Cabin Branch, Clarksburg
Cabin Branch SFD
2014
252
-
252
6
-
$535 - $650
Cabin Branch Boulevard Townhomes
2015
61
-
61
-
-
TBD
Cabin Branch Everson SFD
2014
107
-
107
3
-
$480 - $510
Cabin Branch Everson Townhomes
2014
567
-
567
8
-
$360 - $438
Stoney Spring, Poolesville
2009
98
97
1
1
11
$517 - $767
Preserve at Stoney Spring-Lots for Sale
N/A
-
-
7
-
-
NA
Preserve at Rock Creek, Rockville
2012
68
46
22
5
6
$685 - $935
Popular Run, Silver Spring
Poplar Run Everson Townhomes
2013
136
34
102
13
15
$400 - $478
Poplar Run Lifestyle
2010
202
92
110
10
14
$613 - $691
Poplar Run Lots for Sale
N/A
-
28
-
-
NA
Poplar Run Village
2010
172
58
114
9
8
$613 - $662
Other:
Closed Communities
N/A
-
-
10
Maryland Total
2,136
335
1,891
66
72
As of June 30, 2014
WRECO Supplemental Financial Data (contd)
Winchester Project Table
30 |
31
Six Months
Ending
6/30/2014
County, Project, City
Year of
First
Delivery
Total
Number of
Homes
Cumulative
Homes
Delivered
Lots
Owned
Backlog
Homes
Delivered
Sales Price
Range (in 000's)
Virginia
Chesterfield County:
Founders Bridge, Midlothian
2014
2
-
2
1
-
$580 - $685
Fairfax County:
Reserve at Waples Mill, Oakton
2013
28
12
16
7
6
$1,380 - $1,530
Vale Valley Farms, Oak Hill
2016
-
-
-
-
-
TBD
Stuart Mill & Timber Lake, Oakton
2014
19
-
19
3
-
$1,600 - $1,750
Henrico County:
Stable Hill, Glen Allen
2013
31
30
1
12
5
$450 - $464
Loudoun County:
Willowsford Greens, Aldie
2014
20
1
19
9
1
$785 - $805
Brambleton, Ashburn
-
Brambleton Emerald Ridge
2012
78
78
-
-
5
$406 - $462
English Manor Towns
2014
14
-
14
3
-
$520 - $560
Glenmere at Brambleton SFD
2014
18
1
17
20
1
$613 - $698
Glenmere at Brambleton Townhomes
2014
28
-
28
25
-
$453 - $457
West Park @ Brambleton
2013
32
23
9
14
15
$710 - $791
One Loudoun, Ashburn
One Loudoun Chicago Series
2012
43
37
6
4
3
$585 - $668
One Loudoun Brooklyn Series
2014
17
8
9
7
8
$690 - $715
One Loudoun Manhattan Series
2013
28
15
13
11
10
$685 - $715
One Loudoun Philadelphia Series
2012
57
53
4
2
18
$565 - $630
Willowsford Grant, Leesburg
2013
31
13
18
13
5
$890 - $915
Virginia Total
446
271
175
131
77
Grand Totals:
2,582
606
2,066
197
149
As of June 30, 2014
WRECO Supplemental Financial Data (contd)
Winchester Project Table (contd) |
32
Six Months
Ending
6/30/2014
County, Project, City
Year of
First
Delivery
Total
Number of
Homes
Cumulative
Homes
Delivered
Lots Owned
Backlog
Homes
Delivered
Sales Price
Range (in 000's)
California
Inland Empire Region
Riverside County:
Canyon Hills, Lake Elsinore
LivingSmart at Hillside
2012
182
151
31
20
15
$254 - $300
Meadow Ridge at Canyon Hills
2013
142
35
107
13
10
$337 - $436
LivingSmart at Parkside
2012
151
142
9
9
23
$225 - $267
LivingSmart at Canyon Hills
2010
231
231
-
-
2
$230 - $332
Amberleaf
2014
216
-
216
-
-
$297 - $338
Meadow Glen
2014
140
-
140
34
-
$317 - $375
Future
TBD
578
-
578
-
-
TBD
Tournament Hills, Beaumont
LivingSmart at Tournament Hills
2010
235
197
38
15
17
$260 - $332
LivingSmart at Lakeside
2012
167
115
52
14
20
$230 - $275
Future
TBD
268
-
268
-
-
TBD
Sundance, Beaumont
LivingSmart at Sundance
2013
141
85
56
8
20
$216 - $324
LivingSmart at Estrella
2013
127
46
81
47
32
$213 - $237
Woodmont
2014
50
-
50
7
-
$306 - $370
Cielo
2014
92
-
92
-
-
$180 - $193
Future
TBD
1,896
-
1,896
-
-
TBD
Banning, Banning
TBD
4,318
-
4,318
-
-
$167 - $250
Inland Empire Total
8,934
1,002
7,932
167
139
LA/Ventura Region
Los Angeles County:
Fair Oaks Ranch, Santa Clarita
LivingSmart at Fair Oaks Ranch
2011
124
112
12
11
17
$483 - $518
Crestview
2012
54
54
-
-
2
$515 - $650
Oak Crest
2009
77
77
-
-
1
$515 - $650
Golden Valley Ranch, Santa Clarita
TBD
498
-
498
-
-
$499 - $807
Skyline Ranch, Santa Clarita
TBD
1,260
-
1,260
-
-
$510 - $640
Ventura County:
Moorpark Highlands, Moorpark
2013
133
38
95
38
28
$603 - $607
LA/Ventura Total
2,146
281
1,865
49
48
As of June 30, 2014
WRECO Supplemental Financial Data (contd)
Pardee Project Table |
33
WRECO Supplemental Financial Data (contd)
Pardee Project Table (contd)
Six Months
Ending
6/30/2014
County, Project, City
Year of
First
Delivery
Total
Number of
Homes
Cumulative
Homes
Delivered
Lots Owned
Backlog
Homes
Delivered
Sales Price
Range (in 000's)
San Diego Region
San Diego County:
Alta Del Mar, San Diego
Alta Del Mar Production
2013
117
21
96
21
12
$1,770 -
$2,116
Alta Del Mar Custom Lots (Resid Lot Sales)
2013
12
-
12
-
-
$740 -
$1950
Sorrento Mesa, San Diego
Sorrento Heights
2012
113
99
14
14
29
$727 -
$754
Sorrento Ridge
2014
58
34
24
24
34
$378 -
$485
Sorrento Terrace
2012
71
62
9
6
1
$380 -
$491
Sorrento Heights Prestige Collection
2014
20
-
20
12
-
$850 -
$903
Pacific Highlands Ranch, San Diego
Watermark
2013
160
36
124
35
20
$1,152 -
$1,245
Future
TBD
1,348
-
1,348
-
-
TBD
Olive Hill Estates, Bonsall
2015
37
-
37
-
-
$603 -
$745
Castlerock , San Diego
TBD
430
-
430
-
-
$473 -
$708
Meadowood, Fallbrook
TBD
844
-
844
-
-
$290 -
$590
Ocean View Hills, San Diego
Sea View Terrace
2015
40
-
40
-
-
$290 -
$300
Future
TBD
1,093
-
1,093
-
-
TBD
South Otay Mesa, Otay Mesa
TBD
893
-
893
-
-
$185 -
$530
San Diego Total
5,236
252
4,984
112
96
As of June 30, 2014 |
34
Six Months
Ending
6/30/2014
County, Project, City
Year of
First
Delivery
Total
Number of
Homes
Cumulative
Homes
Delivered
Lots Owned
Backlog
Homes
Delivered
Sales Price
Range (in 000's)
Northern California Region
Sacramento County:
Natomas, Sacramento
TBD
120
-
120
-
-
TBD
San Joaquin County:
Bear Creek, Stockton
TBD
1,252
-
1,252
-
-
TBD
Northern California Total
1,372
-
1,372
-
-
California Total
17,688
1,535
16,153
328
283
Nevada
Clark County:
Eldorado, N. Las Vegas
LivingSmart at Eldorado Ridge
2012
143
96
47
16
15
$252 - $304
LivingSmart at Eldorado Heights
2013
115
62
53
12
23
$301 - $391
LivingSmart Sandstone
2013
145
27
118
7
15
$254 - $306
Ridgeview
2016
4
-
4
-
-
$227 - $283
Future
TBD
425
-
425
-
-
TBD
Pebble Estates, Las Vegas
Durango Ranch
2012
162
90
72
9
8
$489 - $532
Durango Trail
2014
77
26
51
9
26
$398 - $424
Providence, Las Vegas
LivingSmart at Providence
2012
106
89
17
12
11
$257 - $317
Horizon Ridge, Henderson
Horizon Terrace
2014
136
-
136
20
-
$395- $435
Sunset / Fort Apache, Las Vegas
Summerglen
2014
104
-
104
15
-
$294 - $304
Inspirada, Henderson
Solano
2014
132
-
132
-
-
$280 - $320
Alterra
2014
106
-
106
-
-
$405 - $450
Future
TBD
215
-
215
-
-
TBD
Nevada Total
1,870
390
1,480
100
98
Grand Totals:
19,558
1,925
17,633
428
381
As of June 30, 2014
WRECO Supplemental Financial Data (contd)
Pardee Project Table (contd) |
35
Reconciliation of Non-GAAP Financial Measures
TRI Pointe EBITDA Reconciliation
WRECO EBITDA Reconciliation
Fiscal Year Ended December 31,
($ in thousands)
2011
2012
2013
Net Income (Loss)
($4,593)
$2,506
$15,374
Plus: Interest Incurred
171
2,077
3,058
Less: Interest Capitalized
(171)
(2,077)
(3,058)
Plus: Amortization of Interest in Cost of Sales
269
872
2,158
Plus: Provision for Income Taxes
--
--
10,379
Plus: Depreciation and Amortization
758
431
866
EBITDA
($3,566)
$3,809
$28,777
Adjustments:
Plus: Gain on Sales of Marketable Securities
--
--
--
Plus: Amortization of Stock-Based Compensation
466
466
2,371
Adjusted EBITDA
($3,100)
$4,275
$31,148
Fiscal Year Ended December 31,
($ in thousands)
2011
2012
2013
Earnings (Loss) from Continuing Operations
$34,939
$60,719
($151,293)
Plus: Interest Incurred
23,736
27,038
22,674
Less: Interest Capitalized
(21,520)
(22,059)
(19,081)
Plus: Amortization of Interest in Cost of Sales
23,290
30,292
36,671
Plus: Provision (Benefit) for Income Taxes
19,333
38,910
(86,161)
Plus: Depreciation and Amortization
12,241
11,798
13,489
EBITDA
$92,019
$146,698
($183,701)
Adjustments:
Plus: Coyote Springs Impairment
--
--
$343,336
Plus: Restructuring Expense
2,801
2,460
10,938
Plus: Amortization of Stock-Based Compensation
3,026
3,854
5,002
Adjusted EBITDA
$97,846
$153,012
$175,575
In this report, 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 companys operating performance and financing
structure. We also believe these measures facilitate the comparison of our and WRECOs 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 calculate the non-GAAP measures of EBITDA and Adjusted EBITDA and reconciles
those amounts to earnings (loss), as reported and prepared in accordance with GAAP. EBITDA
means earnings (loss) before (a) interest expense, (b) depreciation and amortization and (c) expensing of previously capitalized interest
included in costs of home sales. Adjusted EBITDA means EBITDA before (a) impairments (b)
restructuring expense and (c) amortization of stock-based compensation. Other companies
may calculate EBITDA and Adjusted EBITDA (or similarly titled measures) differently. We believe EBITDA and Adjusted EBITDA information is useful as
one measure of the Companys ability to service debt and obtain financing. |
36
Reconciliation of Non-GAAP Financial Measures (contd)
The following table reconciles the ratio of debt-to-capital to the ratio of
net debt-to-capital. We believe that the ratio of net debt-to-capital is a relevant
financial
measure
for
management
and
investors
to
understand
the
leverage
employed
in
our
operations
and
as
an
indicator
of
the
Companys
ability
to
obtain financing.
The
ratio
of
debt-to-capital
is
computed
as
the
quotient
obtained
by
dividing
debt
by
the
sum
of
debt
plus
equity.
Debt-to-Capital Reconciliation
The
ratio
of
net
debt-to-capital
is
computed
as
the
quotient
obtained
by
dividing
net
debt
(which
is
debt
less
cash
and
cash
equivalents)
by
the
sum
of
net
debt
plus
equity.
The
most
directly
comparable
GAAP
financial
measure
is
the
ratio
of
debt-to-capital.
(1)
(2)
As of March 31, 2014
Pro Forma
($ in thousands)
TRI Pointe
WRECO
Combined
Debt
$176,933
$868,809
$976,933
Equity
326,867
806,415
1,331,833
Total capital
$503,800
$1,675,224
$2,308,766
Ratio of debt-to-capital
(1)
35.1%
51.9%
42.3%
Debt
$176,933
$868,809
$976,933
Less: cash and cash equivalents
(32,046)
(3,338)
(25,049)
Net debt
144,887
865,471
951,884
Equity
326,867
806,415
1,331,833
Total capital
$471,754
$1,671,886
$2,283,717
Ratio of net debt-to-capital
(2)
30.7%
51.8%
41.7% |