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Jun 30, 2022

Tri Pointe Q2 2022 Earnings Report

Tri Pointe Homes reported strong top- and bottom-line results, with home sales revenue exceeding $1 billion and diluted earnings per share increasing by 33% year-over-year.

Key Takeaways

Tri Pointe Homes announced strong second quarter results for 2022, with home sales revenue surpassing $1 billion and a record home sales gross margin percentage of 27.2%. The company generated 1,356 net new home orders and ended the quarter with total liquidity of $938 million.

Diluted earnings per share reached $1.33.

Homebuilding gross margin percentage was 27.2%.

Monthly absorption rate was 3.7 homes per community.

Backlog dollar value increased 18% year-over-year.

Total Revenue
$1.01B
Previous year: $1.02B
-1.0%
EPS
$1.33
Previous year: $1
+33.0%
Avg New Home Sales Price
$677K
Previous year: $653K
+3.7%
Avg Backlog Sales Price
$779K
Gross Profit
$280M
Previous year: $248M
+12.7%
Cash and Equivalents
$270M
Previous year: $556M
-51.5%
Free Cash Flow
-$67.8M
Previous year: $63.8M
-206.2%
Total Assets
$4.41B
Previous year: $4.16B
+6.1%

Tri Pointe

Tri Pointe

Tri Pointe Revenue by Geographic Location

Forward Guidance

For the third quarter, the Company anticipates delivering between 1,300 and 1,500 homes at an average sales price between $700,000 and $715,000. The Company expects homebuilding gross margin percentage to be in the range of 26.0% to 27.0% for the third quarter and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 10.0% to 11.0%. Finally, the Company expects its effective tax rate for the third quarter to be in the range of 25.0% to 26.0%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income