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Sep 30, 2023

Tri Pointe Q3 2023 Earnings Report

Tri Pointe Homes reported a strong operational performance in Q3 2023, surpassing delivery guidance and generating home sales revenue.

Key Takeaways

Tri Pointe Homes reported a strong operational performance in the third quarter, with home sales revenue of $825 million and net income available to common stockholders of $75.4 million, or $0.76 per diluted share. Net new home orders increased 122% year-over-year to 1,513, and active selling communities increased 23% year-over-year to 163.

Net new home orders increased 122% year-over-year to 1,513.

Active selling communities increased 23% year-over-year to 163.

Home sales revenue was $825 million.

Diluted earnings per share was $0.76.

Total Revenue
$839M
Previous year: $1.06B
-20.7%
EPS
$0.76
Previous year: $1.45
-47.6%
Avg New Home Sales Price
$675K
Previous year: $723K
-6.6%
Avg Backlog Sales Price
$693K
Previous year: $797K
-13.0%
Gross Profit
$184M
Previous year: $286M
-35.7%
Cash and Equivalents
$849M
Previous year: $228M
+272.2%
Free Cash Flow
-$79.6M
Previous year: -$22.9M
+248.5%
Total Assets
$4.87B
Previous year: $4.53B
+7.6%

Tri Pointe

Tri Pointe

Tri Pointe Revenue by Geographic Location

Forward Guidance

For the fourth quarter, the Company anticipates delivering between 1,600 and 1,800 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 22.0% to 23.0% for the fourth 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 fourth quarter to be in the range of 25.5% to 26.0%.

Positive Outlook

  • Anticipates delivering between 1,600 and 1,800 homes
  • Average sales price between $670,000 and $680,000
  • Homebuilding gross margin percentage to be in the range of 22.0% to 23.0%
  • SG&A expense as a percentage of home sales revenue will be in the range of 10.0% to 11.0%
  • Effective tax rate for the fourth quarter to be in the range of 25.5% to 26.0%

Revenue & Expenses

Visualization of income flow from segment revenue to net income