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Dec 31, 2019

Tri Pointe Q4 2019 Earnings Report

TRI Pointe Group reported an increase in net income and new home orders, while maintaining a consistent homebuilding gross margin for Q4 2019.

Key Takeaways

TRI Pointe Group reported positive results for the fourth quarter of 2019, with a 52% year-over-year increase in new home orders and diluted earnings per share of $0.85. Home sales revenue reached $1.1 billion, and the company's Board of Directors approved a new stock repurchase program.

New home orders increased by 52% year-over-year.

Homebuilding gross margin percentage was 21.9%.

Diluted earnings per share reached $0.85.

A new stock repurchase program was approved for up to $200 million.

Total Revenue
$1.14B
Previous year: $1.13B
+0.6%
EPS
$0.85
Previous year: $0.79
+7.6%
Avg New Home Sales Price
$634K
Previous year: $649K
-2.3%
Avg Backlog Sales Price
$648K
Previous year: $672K
-3.6%
Gross Profit
$249M
Previous year: $236M
+5.7%
Cash and Equivalents
$329M
Previous year: $278M
+18.5%
Free Cash Flow
$402M
Previous year: $376M
+7.1%
Total Assets
$3.86B
Previous year: $3.88B
-0.7%

Tri Pointe

Tri Pointe

Tri Pointe Revenue by Segment

Tri Pointe Revenue by Geographic Location

Forward Guidance

For the first quarter of 2020, the Company expects to open 15 new communities and close out of 7 communities, which would result in 145 active selling communities as of March 31, 2020. In addition, the Company anticipates delivering between 875 and 950 homes at an average sales price of approximately $600,000. The Company expects its homebuilding gross margin percentage to be in the range of 19.5% to 20.5% for the first quarter of 2020 and anticipates its SG&A expense as a percentage of homes sales revenue will be approximately 15% during such period. Lastly, the Company expects its effective tax rate for the first quarter of 2020 to be approximately 25%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income