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Mar 31, 2023

Tri Pointe Q1 2023 Earnings Report

Tri Pointe Homes reported first quarter results, featuring diluted earnings per share of $0.73 and home sales revenue of $768 million.

Key Takeaways

Tri Pointe Homes announced strong Q1 2023 results, with home sales revenue reaching $768 million and net income available to common stockholders at $75 million, resulting in diluted earnings per share of $0.73. The company saw a boost in net new home orders and reduced cancellation rates due to product repositioning and targeted pricing strategies. With a solid balance sheet and high liquidity, Tri Pointe Homes is well-positioned for future growth.

Diluted earnings per share were reported at $0.73.

Home sales revenue reached $768 million.

Net new home orders totaled 1,619, with a monthly absorption rate of 4.0.

The company's debt-to-capital ratio stood at 32.5%, with total liquidity of $1.7 billion.

Total Revenue
$771M
Previous year: $727M
+6.0%
EPS
$0.73
Previous year: $0.81
-9.9%
Avg New Home Sales Price
$722K
Previous year: $660K
+9.4%
Avg Backlog Sales Price
$742K
Previous year: $741K
+0.1%
Gross Profit
$184M
Previous year: $200M
-7.8%
Cash and Equivalents
$966M
Previous year: $413M
+134.1%
Free Cash Flow
$129M
Previous year: -$129M
-200.4%
Total Assets
$4.74B
Previous year: $4.31B
+9.9%

Tri Pointe

Tri Pointe

Tri Pointe Revenue by Geographic Location

Forward Guidance

For the second quarter, the Company anticipates delivering between 900 and 1,000 homes at an average sales price between $720,000 and $730,000. The Company expects homebuilding gross margin percentage to be in the range of 22.0% to 23.0% for the second quarter and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 12.0% to 13.0%. Finally, the Company expects its effective tax rate for the second quarter to be in the range of 26.0% to 27.0%. For the full year, the Company anticipates delivering between 4,500 and 5,000 homes at an average sales price between $690,000 and $700,000.

Revenue & Expenses

Visualization of income flow from segment revenue to net income