Attached files
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| 8-K - 8-K - Tri Pointe Homes, Inc. | d821169d8k.htm |
 2014 Investor Day –
November 18, 2014
Maracay Homes –
Pardee Homes –
Quadrant Homes –
Trendmaker Homes –
TRI Pointe Homes –
Winchester
Homes
Exhibit 99.1 |
 Forward Looking Statements
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, our ability to achieve the anticipated
benefits of the Weyerhaeuser Real Estate Company (WRECO) transaction and our future production,
operational and financial results, financial condition, prospects, 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. 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 effect of general economic conditions, including employment rates, housing starts,
interest rate levels, 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; levels of competition; the successful
execution of our internal performance plans, including restructuring and cost reduction
initiatives; global economic conditions; raw material prices; energy prices; the effect of weather; the risk of loss from
earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other
natural disasters; transportation costs; federal and state tax policies; the effect of land
use, environment and other governmental regulations; legal proceedings; 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; the
risk that disruptions from the WRECO transaction will harm our business; our ability to achieve
the benefits of the WRECO transaction in the estimated amount and the anticipated timeframe, if
at all; our ability to integrate WRECO successfully and to achieve the anticipated synergies
therefrom; changes in accounting principles; our relationship, and actual and potential conflicts of interest, with
Starwood Capital Group or its affiliates; 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.
|
 Legacy
TRI
Pointe
Homes
–
The
Beginning
Apr. 2009
TRI Pointe
was
established
Jul. -
Oct. 2009
Began fee-building
projects with The
Irvine Company
and Resmark
Capital
Sept. 2010
Received $150mm
equity commitment
from Starwood
Capital
2012
Fee-building was a capital-
efficient method of establishing
the company
Rapid expansion of owned projects
through deployment of Starwood equity
investment and primary IPO proceeds
TRI Pointe was established in 2009 to capitalize on the unique market opportunities
of the housing recovery in California and other Southwestern markets.
(1)
Includes
land
under
a
purchase
contract
or
option
contract
as
of
September
30,
2014.
2011:
Acquired 353 lots in 6
communities
2012:
Acquired 511 lots
in 8 communities
2011
2009
2010
2013
2013:
Acquired 1,903 lots
in 24 communities
2014
Jan. 2013
TPH goes public
(1st
Homebuilder
IPO since 2004)
July 2014
Completed $2.8 bn
WRECO
transaction |
 In
November 2013, TRI Pointe Homes (“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
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
Transaction combines industry-leading management at TRI Pointe with WRECO's
strong local market franchises and management teams
—
Corporate name will be TRI Pointe Group 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 Top
10
homebuilder
by
combined
equity
market
value
(4)
Growth-oriented, pure-play homebuilder represents attractive investment at
current point in the housing cycle TPH / WRECO Transaction July 2014
(1)
Excluding
shares
to
be
issued
on
exercise
or
vesting
of
equity
awards
held
by
WRECO
employees
that
were
assumed
by
TRI
Pointe
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)
Includes
land
under
a
purchase
contract
or
option
contract
as
of
September
30,
2014.
(4)
Equity market value of $2.4bn based on 161,340,261 shares outstanding at the closing
price of $14.87 on November 14, 2014. (3)
The combined company will focus on some of the most attractive housing markets in the U.S.
and has a combined land position of approximately 30,000 lots owned or controlled
|
 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
SD-
Beth Fischer
IE-
Mike Taylor
LV-
Klif Andrews
Combined Yrs in Industry: 65
Winchester
Alan Shapiro
Yrs in Industry: 29
Trendmaker
Will Holder
Yrs in Industry: 21
Quadrant
Ken Krivanec
Yrs in Industry: 25
Maracay
Andy Warren
Yrs in Industry: 27
83
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. 104
Employees
147
Employees
154
Employees
277
Employees
TRI Pointe Homes
So Cal –
Tom Grable
No Cal –
Jeff Frankel
Denver –
Matt Osborn
Combined Yrs in Industry: 65
222
Employees
Note: Employee numbers as of October 2014. |
 TRI Pointe Group –
Executive Management Team
BOARD OF DIRECTORS
VP
HUMAN RESOURCES
DAN
SHEA
FINANCIAL SERVICES
TRI POINTE SOLUTIONS
HOMEBUILDER
TRI POINTE HOMES
HOMEBUILDER
PARDEE
HOMES
PRESIDENT AND CHIEF
OPERATING OFFICER
TOM MITCHELL
VP CORPORATE
MARKETING
LINDA
MAMET
VP & GENERAL
COUNSEL
BRAD BLANK
HOMEBUILDER
QUADRANT
HOMES
HOMEBUILDER
MARACAY
HOMES
CHIEF EXECUTIVE
OFFICER
DOUG BAUER
VP
I T
BOB
D'UNGER
VP
FINANCE
CHRIS MARTIN
CHIEF ACCOUNTING
OFFICER
GLENN
KEELER
CHIEF FINANCIAL
OFFICER
MIKE
GRUBBS
HOMEBUILDER
TRENDMAKER
HOMES
HOMEBUILDER
WINCHESTER HOMES |
 Market: Greater Puget Sound Area
LTM Orders: 348
LTM Deliveries: 326
LTM Revenue: $126,531 LTM ASP: $388
Lots Owned or Controlled: 1,482
Markets: Washington DC,
Richmond
LTM Orders: 331
LTM Deliveries:431
LTM Revenue: $301,294
LTM ASP: $699
Lots Owned or Controlled: 2,934
Markets: Phoenix, Tucson
LTM Orders: 382
LTM Deliveries:477
LTM Revenue: $172,188 LTM
ASP: $361 Lots Owned or Controlled: 1,752
Combined LTM Orders: 3,178
Combined LTM Deliveries: 3,413
Combined LTM Revenue: $1,778,226
Combined LTM ASP: $521
Combined Lots Owned or Controlled: 30,111
Markets: Orange County, Los
Angeles, San Diego, San
Francisco Bay Area, Denver
LTM Orders: 576
LTM Deliveries: 521
LTM Revenue: $404,539
LTM ASP:$776
Lots Owned or Controlled:
3,778
Leading Brand Names Targeted to Specific Markets
Markets: Los Angeles/Ventura,
Inland Empire, San Diego, Las
Vegas
LTM Orders: 982
LTM Deliveries: 1,108
LTM Revenue: $507,563
LTM ASP: $458
Lots Owned or Controlled:
18,097
Market: Houston
LTM Orders: 559
LTM Deliveries: 550
LTM Revenue: $266,111
LTM ASP: $484
Lots Owned or Controlled: 2,068
As used in this presentation, LTM data are audited and means information for the twelve months period
ended September 30, 2014. LTM data have been derived by adding the data for the nine month period ended September 30, 2014
to the data for the twelve month period ended December 31, 2013 and then subtracting the data for the
nine month period ended September 30, 2013. LTM data may not be indicative for the results that may be expected for the year
ending December 31, 2014.
|
 National Economic Overview
Source: BLS October 2014
Top
Job
Growth
Markets
Ranked
by
Change
in
Emp.
–
Sept
2014
Rank
Metropolitan Area
Sept. 2014
Net Change
% Change
1
New York-Northern New Jersey-Long Island, NY-NJ-PA
8,840,600
130,500
1.5%
2
Houston-Sugar Land-Baytown, TX
2,921,700
119,400
4.3%
3
Los Angeles-Long Beach-Santa Ana, CA
5,679,100
102,000
1.8%
4
Dallas-Fort Worth-Arlington, TX
3,219,100
100,200
3.2%
5
Miami-Fort Lauderdale-Pompano Beach, FL
2,415,500
69,200
2.9%
6
San Francisco-Oakland-Fremont, CA
2,175,500
60,900
2.9%
7
Atlanta-Sandy Springs-Marietta, GA
2,468,600
51,900
2.1%
8
Seattle-Tacoma-Bellevue, WA
1,851,900
50,200
2.8%
9
Boston-Cambridge-Quincy, MA-NH NECTA
2,613,400
45,300
1.8%
10
Chicago-Joliet-Naperville, IL-IN-WI
4,518,600
45,000
1.0%
11
Phoenix-Mesa-Glendale, AZ
1,859,900
41,200
2.3%
12
Orlando-Kissimmee-Sanford, FL
1,108,600
39,900
3.7%
13
Denver-Aurora-Broomfield, CO
1,347,600
38,800
3.0%
14
San Jose-Sunnyvale-Santa Clara, CA
1,004,900
34,300
3.5%
15
San Diego-Carlsbad-San Marcos, CA
1,345,500
33,300
2.5%
16
Austin-Round Rock-San Marcos, TX
901,300
31,400
3.6%
17
Minneapolis-St. Paul-Bloomington, MN-WI
1,843,200
31,000
1.7%
18
Riverside-San Bernardino-Ontario, CA
1,258,300
29,900
2.4%
19
Portland-Vancouver-Hillsboro, OR-WA
1,071,000
27,200
2.6%
20
Nashville-Davidson-Murfreesboro-Franklin, TN
843,100
25,500
3.1%
Current Markets
Potential Future
Markets |
    Family Of
Homebuilders |
 Maryland and Virginia
•
Founded
in
1979
–
over
19,000
homes
delivered
since
inception
•
Your
Home
+
Your
Way
–
building
broad
product
offering
of
innovative and flexible home designs
•
Developer and Builder in Maryland and Virginia
LTM Orders: 331
LTM Deliveries: 431
LTM Revenue: $301,294
LTM ASP: $699
Lots Owned or Controlled: 2,934 |
 California and Nevada
•
Founded
in
1921
–
over
68,000
homes
delivered
in
CA
and
NV since 1969
•
A
Home
for
Every
Buyer
–
diverse
product
portfolio
of
both
premier SFA and SFD Homes
•
Masterplan Developer and Home Builder in LA / Ventura,
Inland Empire, San Diego and Las Vegas
LTM Orders: 982
LTM Deliveries: 1,108
LTM Revenue: $507,563
LTM ASP: $458
Lots Owned or Controlled: 18,097 |
 Washington State
•
Founded
in
1959
-
delivered
over
15,000
homes
since
inception
•
Focus on 6 core counties in the Puget Sound area targeting
premium entry level through move-up segment offering
Northwest contemporary designs with high level of
customization
•
Price
ranges
from
$220k
-
$985k
LTM Orders: 348
LTM Deliveries: 326
LTM Revenue: $126,531
LTM ASP: $388
Lots Owned or Controlled: 1,482 |
 California and Colorado
•
Founded
2009
–
with
Southern
California
operations,
established Northern California operations in 2011 and
Colorado in 2012. Initial IPO in January 2013
•
Focus on growth markets in Southwestern US particularly
coastal California (Northern & Southern)
•
Diversified premium product offering with both SFA and SFD
products ranging from $300k to over $1.6M
LTM Orders: 576
LTM Deliveries: 521
LTM Revenue: $404,539
LTM ASP: $776
Lots Owned or Controlled: 3,778 |
 Arizona
•
Founded
in
1991
–
acquired
by
WRECO
in
2006
–
over
7,700 homes delivered since inception
•
Broad range of product offerings in Phoenix and Tucson
markets with appeal to affluent first-time and move-up
segments
•
Price range from $206k to over $500k
LTM Orders: 382
LTM Deliveries: 477
LTM Revenue: $172,188
LTM ASP: $361
Lots Owned or Controlled: 1,752 |
 Texas
•
Founded
in
1971
–
over
12,000
homes
delivered
since
inception
–
acquired
by
WRECO
in
1980
•
Broad reach of product type ranging from $276k to $848k
•
Affordable luxury homes built primarily in suburban
locations
•
Select land development opportunities in the Houston
market
LTM Orders: 559
LTM Deliveries: 550
LTM Revenue: $266,111
LTM ASP: $484
Lots Owned or Controlled: 2,068 |
    Land Supply |
 Combined Lot Position
Market
Owned
Controlled
Total Lots
% Owned
LTM Deliveries
Years of
Supply
Southern California
16,001
384
16,385
98%
1,168
14.0
Northern California
2,399
359
2,758
87%
140
19.7
Colorado
390
273
663
59%
42
15.8
Maryland / Virginia
2,382
552
2,934
81%
431
6.8
Arizona
1,275
477
1,752
73%
477
3.7
Nevada
1,629
440
2,069
79%
279
7.4
Texas
757
1,311
2,068
37%
550
3.8
Washington
1,055
427
1,482
71%
326
4.5
Total
25,888
4,223
30,111
86%
3,413
8.8
As of September 30, 2014
Geographic Breakdown
Significant Land Supply to Fuel Growth
Southern California
55%
Northern California
9%
Colorado
2%
MD / VA
9%
Arizona
6%
Nevada
7%
Texas
7%
Washington
5% |
 Land Acquisition and Land Development Spend
Actual and Projected 4Q14 and FY2015
As
of
September
30,
2014
(unaudited)
–
on
an
adjusted
basis
(1)
(in millions)
(1) Includes
legacy
TRI
Pointe
land
acquisition
and
development
spend
for
the
periods
prior
to
July
7,
2014,
the
closing
date
of
the
WRECO
transaction.
$97
$87
$170
$174
$92
$124
$143
$177
$38
$62
$89
$117
$92
$106
$81
$87
$-
$50
$100
$150
$200
$250
$300
$350
1Q14
2Q14
3Q14
4Q14P
1Q15P
2Q15P
3Q15P
4Q15P
Land Development
Land Acquisition |
    Emphasis on
California |
 Our
attractive land portfolio in California should position us well to continue to
generate favorable returns •
Finished lots available for near-term homebuilding operations
•
Strategic entitled land positions to support future growth in Inland Empire, San
Diego and Los Angeles •
Non-core land sale opportunities to increase cash flow and profits
•
Book
basis
of
real
estate
inventories
of
approximately
$50,000
per
lot
in
Pardee
California
(1)
•
Focus on land acquisitions for deliveries in 2016 and 2017
(1) As of September 30, 2014
California Land Portfolio |
 California Lot Position
As of September 30, 2014
Geographic Breakdown
Significant Land Supply to Fuel Growth
Total Lots Owned
or Controlled
% Owned
Book Basis of Owned
Inventory per lot
LTM Deliveries
Years of Supply
Southern California
LA/Ventura
2161
94%
$142,208
215
10.1
Orange County
581
54%
$399,810
174
3.3
Inland Empire
8,725
100%
$36,413
519
16.8
San Diego
4,918
100%
$61,056
260
18.9
Total
16,385
98%
$64,665
1,168
14.0
Northern California
2,758
87%
$114,468
140
19.7
Total California
19,143
96%
$71,159
1,308
14.6 |
 Net New Home Orders -
GAAP
Combined Company vs California
For the periods ended September 30, 2014 (unaudited)
YTD by State
As of September 30, 2014 (unaudited) |
 Net New Home Orders -
Adjusted
Combined Company vs California
For
the
periods
ended
September
30,
2014
(unaudited)
–
on
an
adjusted
basis
(1)
(1) Includes
legacy
TRI
Pointe
operations
for
the
periods
prior
to
July
7,
2014,
the
closing
date
of
the
WRECO
transaction.
See
“Reconciliation
of
Non-GAAP
Financial
Measures”
in
the
appendix
of
this
presentation.
YTD by State
As
of
September
30,
2014
(unaudited)
–
on
an
adjusted
basis
(1) |
 New Home Deliveries -
GAAP
Combined Company vs California
For the periods ended September 30, 2014 (unaudited)
YTD by State
As of September 30, 2014 (unaudited) |
 New Home Deliveries -
Adjusted
YTD by State
As of September 30, 2014 (unaudited) –
on an adjusted basis
(1)
(1) Includes
legacy
TRI
Pointe
operations
for
the
periods
prior
to
July
7,
2014,
the
closing
date
of
the
WRECO
transaction.
See
“Reconciliation
of
Non-GAAP
Financial
Measures”
in
the
appendix
of
this presentation.
Combined Company vs California
For
the
periods
ended
September
30,
2014(unaudited)
–
on
an
adjusted
basis
(1) |
 Backlog –
Units and Dollar Value
Combined Company vs California
Three months ended September 30, 2014 (unaudited)
(dollars in thousands) Dollar Value by State
Three months ended September 30, 2014 (unaudited) |
 Home Sales Revenue -
GAAP
Combined Company vs California
For
the
periods
ended
September
30,
2014
(unaudited)
(dollars
in
thousands)
YTD by State
For the nine months ended September 30, 2014 (unaudited)
|
 Home
Sales
Revenue
-
Adjusted
Combined Company vs California
For
the
periods
ended
September
30,
2014
(unaudited)
–
on
an
adjusted
basis
(1)
(dollars in thousands)
YTD by State
For
the
nine
months
ended
September
30,
2014
(unaudited)
–
on
an
adjusted
basis
(1)
(1) Includes
legacy
TRI
Pointe
operations
for
the
periods
prior
to
July
7,
2014,
the
closing
date
of
the
WRECO
transaction.
See
“Reconciliation
of
Non-GAAP
Financial
Measures”
in
the
appendix
of
this
presentation. |
 Homebuilding Gross Margins
Combined Company vs California
For the periods ended September 30, 2014 (unaudited)
YTD Homebuilding GM %
For
the
nine
months
ended
September
30,
2014
(unaudited)
–
on
an adjusted basis
(1)
(1) Includes
legacy
TRI
Pointe
operations
for
the
periods
prior
to
July
7,
2014,
the
closing
date
of
the
WRECO
transaction.
See
“Reconciliation
of
Non-GAAP
Financial
Measures”
in
the
appendix
of
this presentation. |
 Adjusted Homebuilding Gross Margins
Combined Company vs California
For the periods ended September 30, 2014 (unaudited)
on an adjusted basis
(1)
YTD Homebuilding GM %
For the nine months ended September 30, 2014 (unaudited)
on an adjusted basis
(1)
(1) Includes
legacy
TRI
Pointe
operations
for
the
periods
prior
to
July
7,
2014,
the
closing
date
of
the
WRECO
transaction.
See
“Reconciliation
of
Non-GAAP
Financial
Measures”
in
the
appendix
of
this
presentation. |
 California Inventory
Discussion
Total
Pardee CA
TPH CA
Inventory
Value
Units
Inventory
Value
Units
Inventory
Value
Units
Models, Homes Completed or Under
Construction
$ 290,320
836
$118,446
413
$171,874
423
Land Under Development or Held for
Future Use
$ 1,019,000
17,564
$678,638
15,615
$340,362
1,949
Real Estate Inventory and Lots Owned
$ 1,309,320
18,400
$ 797,084
16,028
$ 512,236
2,372
Land Under Development or Held for
Future Use
Per Lot
Per Lot
Per Lot
$ 71,159
$ 49,731
$215,951
As of September 30, 2014
(dollars in thousands except per lot) |
 California Land
Optionality |
 Potential Land Sale #1 –
PA-6 –
San Diego, CA
•
Multifamily site in San Diego
consisting of 42.23 net acres
•
Entitled for 912 to 1,578
multifamily units
•
Part of Ocean View Hills
masterplan
in
Otay
Mesa
–
a
suburban community within
the City of San Diego
•
Listed for Sale with CBRE –
San Diego –
Kevin Mulhern
Overview |
 Potential Land Sale #2 –
Pacific Highland Ranch –
Employment Site
Overview
•
•
•
•
15.72 Acre Site
Entitled for 600-800,000 sf
of commercial office or
R&D office
Part of Pacific Highlands
Ranch Master Plan
Located on SR-56
between I-5 and I-15
freeways |
 Long-Term
Land
Projects
-
California
#
City
County
Original
Remaining
1
Natomas
Sacramento
Sacramento
150
150
2
Bear
Creek
Stockton
San Joaquin
700
700
3
Skyline Ranch
Santa Clarita
Los Angeles
1250
1250
4
Golden Valley
Santa Clarita
Los Angeles
498
498
5
Butterfield
Banning
Riverside
4318
4318
6
Meadowood
Fallbrook
San Diego
844
844
7
South Otay
San Diego
San Diego
893
893
TOTAL 8,653
Project |
 Northern California Division
Note:
All
information
relating
to
projects
that
are
projected
to
open
after
September
30,
2014
are
estimates
0
2
3
6
10
0
2
4
6
8
10
12
2011
2012
2013
2014P
2015P
as of September 30, 2014
Active Communities – Actual & Projected 4Q14 and FY2015 |
 7
8
8
6
7
8
9
2013
2014P
2015P
as of September 30, 2014
Inland Empire Division
(1)
All
information
relating
to
projects
that
are
projected
to
open
after
September
30,
2014
are
estimates
Active Communities – Actual & Projected 4Q14 and FY2015 |
 *
Projected San Diego Division
as of September 30, 2014
Note:
All
information
relating
to
projects
that
are
projected
to
open
after
September
30,
2014
are
estimates
4
3
6
0
1
2
3
4
5
6
7
2013
2014P
2015P
Active Communities – Actual & Projected 4Q14 and FY2015 |
 Southern California Division
3
5
8
12
15
0
2
4
6
8
10
12
14
16
2011
2012
2013
2014P
2015P
as of September 30, 2014
Active Communities – Actual & Projected 4Q14 and FY2015 Note: All information
relating to projects that are projected to open after September 30, 2014 are estimates |
 Appendix |
 Reconciliation of Non-GAAP Financial Measures
(unaudited)
In
this
presentation,
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 table reconciles 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. September 30, 2014
Three Months Ended
Nine Months Ended
$
%
$
%
(dollars in thousands)
Home sales
$ 471,801
100.0%
1,023,312
100.0%
Cost of home sales
385,400
81.7%
819,377
80.1%
Homebuilding gross margin
86,401
18.3%
203,935
19.9%
Add: interest in cost of home sales
7,702
1.6%
16,342
1.6%
Add: purchase accounting adjustment
12,961
2.8%
12,961
1.3%
Adjusted homebuilding gross margin
$ 107,064
22.7%
233,238
22.8%
Homebuilding gross margin percentage
18.3%
-
19.9%
-
Adjusted homebuilding gross margin percentage
22.7%
-
22.8%
- |
 September 30, 2014
Three Months Ended
Nine Months Ended
Combined
Reported
Legacy
Adjustments
Combined
Adjusted
Combined
Reported
Legacy
Adjustments
Combined
Adjusted
Supplemental Operating Data:
(dollars in thousands)
Home sales revenue
$ 471,801
$ 1,959
$ 473,760
$ 1,023,312
$162,107
$1,185,419
Net new home orders
803
8
811
2,233
336
2,569
New homes delivered
842
2
844
1,978
197
2,175
Average selling price of homes
delivered
$ 560
$ 979
$ 561
$ 517
$823
$ 545
Average selling communities
107.0
NA
107.0
98.5
NA
98.5
Selling communities at end of
period
106
NA
106
106
NA
106
Cancellation rate
18%
NA
18%
16%
NA
16%
Backlog (estimated dollar value)
$ 870,365
NA
$ 870,365
NA
NA
NA
Backlog (homes)
1,440
NA
1,440
NA
NA
NA
Average selling price in backlog
$ 604
NA
$ 604
NA
NA
NA
Homebuilding Margin
18.3%
15.0%
18.3%
19.9%
23.1%
20.4%
Adjusted Homebuilding Margin
22.7%
15.5%
22.7%
22.8%
23.8%
22.9%
Reconciliation of Non-GAAP Financial Measures
(cont’d)(unaudited)
The merger with Weyerhaeuser Real Estate Company (“WRECO”) was accounted
for as a "reverse acquisition" of TRI Pointe by WRECO in
accordance
with
ASC
Topic
805,
"Business
Combinations."
As
a
result,
legacy
TRI
Pointe's
financial
results
are
not
included
in
the
combined
company’s
GAAP
results
for
any
period
prior
to
July
7,
2014,
the
closing
date
of
the
merger.
This
schedule
provides
certain
supplemental financial and operations information of the combined company that is
"Adjusted" to include legacy TRI Pointe stand-alone
operations. No other adjustments have been made to the supplemental combined
company information provided and this information is summary only and may
not necessarily be indicative of the results had the merger occurred at the beginning of the periods presented or
the financial condition to be expected for the remainder of the year or any future
date or period. The following schedule provides certain supplemental
financial and operations information of the combined company that is "Adjusted" to
include legacy TRI Pointe stand-alone operations for (i) the period from July
1, 2014 through July 7, 2014 and (ii) the three months ended September 30,
2013, as though the WRECO merger was completed on January 1, 2013. |
 Reconciliation of Non-GAAP Financial Measures
(cont’d)(unaudited)
LTM Revenue as of September 30, 2014
(in thousands)
Combined
Reported
Legacy
Adjustments
Combined
Adjusted
Supplemental Operating Data:
Combined LTM Revenue
$1,497,144
$281,082
$1,778,226 |