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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | |||||||||||||||
Maracay Homes | $ | 75,754 | $ | 47,857 | $ | 126,814 | $ | 93,294 | |||||||
Pardee Homes | 180,377 | 240,230 | 264,076 | 359,163 | |||||||||||
Quadrant Homes | 40,266 | 59,163 | 80,818 | 105,221 | |||||||||||
Trendmaker Homes | 65,466 | 64,472 | 117,828 | 108,258 | |||||||||||
TRI Pointe Homes | 154,213 | 152,827 | 285,049 | 284,784 | |||||||||||
Winchester Homes | 54,205 | 60,294 | 88,846 | 98,113 | |||||||||||
Total homebuilding revenues | 570,281 | 624,843 | 963,431 | 1,048,833 | |||||||||||
Financial services | 345 | 379 | 586 | 527 | |||||||||||
Total | $ | 570,626 | $ | 625,222 | $ | 964,017 | $ | 1,049,360 | |||||||
Income (loss) before income taxes | |||||||||||||||
Maracay Homes | $ | 6,241 | $ | 2,523 | $ | 7,998 | $ | 5,159 | |||||||
Pardee Homes | 36,270 | 96,079 | 46,163 | 128,210 | |||||||||||
Quadrant Homes | 3,109 | 5,615 | 6,853 | 9,311 | |||||||||||
Trendmaker Homes | 4,542 | 3,865 | 6,424 | 5,923 | |||||||||||
TRI Pointe Homes | 8,958 | 12,213 | 15,397 | 22,928 | |||||||||||
Winchester Homes | 2,219 | 3,992 | 2,619 | 4,653 | |||||||||||
Corporate | (11,000 | ) | (9,791 | ) | (22,717 | ) | (18,293 | ) | |||||||
Total homebuilding income before income taxes | 50,339 | 114,496 | 62,737 | 157,891 | |||||||||||
Financial services | 1,562 | 1,610 | 1,995 | 2,415 | |||||||||||
Total | $ | 51,901 | $ | 116,106 | $ | 64,732 | $ | 160,306 |
June 30, 2017 | December 31, 2016 | ||||||
Real estate inventories | |||||||
Maracay Homes | $ | 257,404 | $ | 228,965 | |||
Pardee Homes | 1,246,576 | 1,098,608 | |||||
Quadrant Homes | 270,416 | 221,386 | |||||
Trendmaker Homes | 212,917 | 211,035 | |||||
TRI Pointe Homes | 922,893 | 868,088 | |||||
Winchester Homes | 298,135 | 282,545 | |||||
Total | $ | 3,208,341 | $ | 2,910,627 | |||
Total assets | |||||||
Maracay Homes | $ | 278,566 | $ | 255,466 | |||
Pardee Homes | 1,353,869 | 1,201,302 | |||||
Quadrant Homes | 286,542 | 242,208 | |||||
Trendmaker Homes | 227,390 | 225,025 | |||||
TRI Pointe Homes | 1,089,350 | 1,052,400 | |||||
Winchester Homes | 324,998 | 305,379 | |||||
Corporate | 182,680 | 275,923 | |||||
Total homebuilding assets | 3,743,395 | 3,557,703 | |||||
Financial services | 8,602 | 6,937 | |||||
Total | $ | 3,751,997 | $ | 3,564,640 |
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June 30, 2017 | December 31, 2016 | ||||||
Escrow proceeds and other accounts receivable, net | $ | 26,736 | $ | 35,625 | |||
Warranty insurance receivable (Note 13) | 46,267 | 46,875 | |||||
Total receivables | $ | 73,003 | $ | 82,500 |
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June 30, 2017 | December 31, 2016 | ||||||
Real estate inventories owned: | |||||||
Homes completed or under construction | $ | 1,039,687 | $ | 659,210 | |||
Land under development | 1,796,335 | 1,824,989 | |||||
Land held for future development | 135,695 | 226,915 | |||||
Model homes | 188,493 | 155,039 | |||||
Total real estate inventories owned | 3,160,210 | 2,866,153 | |||||
Real estate inventories not owned: | |||||||
Land purchase and land option deposits | 33,231 | 26,174 | |||||
Consolidated inventory held by VIEs | 14,900 | 18,300 | |||||
Total real estate inventories not owned | 48,131 | 44,474 | |||||
Total real estate inventories | $ | 3,208,341 | $ | 2,910,627 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest incurred | $ | 19,931 | $ | 16,280 | $ | 38,804 | $ | 31,429 | |||||||
Interest capitalized | (19,931 | ) | (16,280 | ) | (38,804 | ) | (31,429 | ) | |||||||
Interest expensed | $ | — | $ | — | $ | — | $ | — | |||||||
Capitalized interest in beginning inventory | $ | 166,515 | $ | 146,630 | $ | 157,329 | $ | 140,311 | |||||||
Interest capitalized as a cost of inventory | 19,931 | 16,280 | 38,804 | 31,429 | |||||||||||
Interest previously capitalized as a cost of inventory, included in cost of sales | (13,185 | ) | (11,563 | ) | (22,872 | ) | (20,393 | ) | |||||||
Capitalized interest in ending inventory | $ | 173,261 | $ | 151,347 | $ | 173,261 | $ | 151,347 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Real estate inventory impairments | $ | 234 | $ | — | $ | 267 | $ | — | |||||||
Land and lot option abandonments and pre-acquisition charges | 273 | 107 | 561 | 289 | |||||||||||
Total | $ | 507 | $ | 107 | $ | 828 | $ | 289 |
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June 30, 2017 | December 31, 2016 | ||||||
Limited liability company interests | $ | 15,604 | $ | 14,327 | |||
General partnership interests | 3,183 | 3,219 | |||||
Total | $ | 18,787 | $ | 17,546 |
June 30, 2017 | December 31, 2016 | ||||||
Assets | |||||||
Cash | $ | 11,674 | $ | 9,796 | |||
Receivables | 5,254 | 10,203 | |||||
Real estate inventories | 97,800 | 97,402 | |||||
Other assets | 944 | 1,087 | |||||
Total assets | $ | 115,672 | $ | 118,488 | |||
Liabilities and equity | |||||||
Accounts payable and other liabilities | $ | 9,107 | $ | 12,844 | |||
Company’s equity | 18,787 | 17,546 | |||||
Outside interests' equity | 87,778 | 88,098 | |||||
Total liabilities and equity | $ | 115,672 | $ | 118,488 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net sales | $ | 5,228 | $ | 4,688 | $ | 10,318 | $ | 7,897 | |||||||
Other operating expense | (3,579 | ) | (3,004 | ) | (6,182 | ) | (5,154 | ) | |||||||
Other income | 22 | 1 | 24 | 2 | |||||||||||
Net income | $ | 1,671 | $ | 1,685 | $ | 4,160 | $ | 2,745 | |||||||
Company’s equity in income of unconsolidated entities | $ | 2,802 | $ | 1,499 | $ | 3,206 | $ | 2,200 |
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June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Deposits | Remaining Purchase Price | Consolidated Inventory Held by VIEs | Deposits | Remaining Purchase Price | Consolidated Inventory Held by VIEs | ||||||||||||||||||
Consolidated VIEs | $ | 675 | $ | 14,225 | $ | 14,900 | $ | 400 | $ | 17,900 | $ | 18,300 | |||||||||||
Unconsolidated VIEs | 6,375 | 145,232 | N/A | 2,375 | 49,016 | N/A | |||||||||||||||||
Other land option agreements | 26,856 | 264,060 | N/A | 23,799 | 246,658 | N/A | |||||||||||||||||
Total | $ | 33,906 | $ | 423,517 | $ | 14,900 | $ | 26,574 | $ | 313,574 | $ | 18,300 |
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June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Goodwill | $ | 139,304 | $ | — | $ | 139,304 | $ | 139,304 | $ | — | $ | 139,304 | |||||||||||
Trade names | 27,979 | (6,055 | ) | 21,924 | 27,979 | (5,788 | ) | 22,191 | |||||||||||||||
Total | $ | 167,283 | $ | (6,055 | ) | $ | 161,228 | $ | 167,283 | $ | (5,788 | ) | $ | 161,495 |
Remainder of 2017 | $ | 267 | |
2018 | 534 | ||
2019 | 534 | ||
2020 | 534 | ||
2021 | 534 | ||
Thereafter | 2,221 | ||
Total | $ | 4,624 |
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June 30, 2017 | December 31, 2016 | ||||||
Prepaid expenses | $ | 19,562 | $ | 24,495 | |||
Refundable fees and other deposits | 17,398 | 17,731 | |||||
Development rights, held for future use or sale | 2,569 | 2,569 | |||||
Deferred loan costs - unsecured revolving credit facility | 3,904 | 2,101 | |||||
Operating properties and equipment, net | 11,010 | 10,884 | |||||
Income tax receivable | 1,336 | — | |||||
Other | 2,332 | 2,812 | |||||
Total | $ | 58,111 | $ | 60,592 |
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June 30, 2017 | December 31, 2016 | ||||||
Accrued payroll and related costs | $ | 22,461 | $ | 33,761 | |||
Warranty reserves (Note 13) | 80,128 | 83,135 | |||||
Estimated cost for completion of real estate inventories | 77,802 | 59,531 | |||||
Customer deposits | 27,625 | 13,437 | |||||
Income tax liability to Weyerhaeuser (Note 16) | 8,610 | 8,589 | |||||
Accrued income taxes payable | 9,116 | 1,200 | |||||
Accrued interest | 3,143 | 11,570 | |||||
Other tax liability | 35,073 | 34,961 | |||||
Other | 14,059 | 17,661 | |||||
Total | $ | 278,017 | $ | 263,845 |
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June 30, 2017 | December 31, 2016 | ||||||
4.375% Senior Notes due June 15, 2019 | $ | 450,000 | $ | 450,000 | |||
4.875% Senior Notes due July 1, 2021 | 300,000 | 300,000 | |||||
5.875% Senior Notes due June 15, 2024 | 450,000 | 450,000 | |||||
5.250% Senior Notes due June 1, 2027 | 300,000 | — | |||||
Discount and deferred loan costs | (32,139 | ) | (31,693 | ) | |||
Total | $ | 1,467,861 | $ | 1,168,307 |
June 30, 2017 | December 31, 2016 | ||||||
Unsecured revolving credit facility | $ | 150,000 | $ | 200,000 |
June 30, 2017 | December 31, 2016 | ||||||
Seller financed loans | $ | — | $ | 13,726 |
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• | Level 1—Quoted prices for identical instruments in active markets |
• | Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date |
• | Level 3—Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date |
June 30, 2017 | December 31, 2016 | ||||||||||||||||
Hierarchy | Book Value | Fair Value | Book Value | Fair Value | |||||||||||||
Senior Notes (1) | Level 2 | $ | 1,490,190 | $ | 1,551,750 | $ | 1,189,180 | $ | 1,219,125 | ||||||||
Unsecured revolving credit facility (2) | Level 2 | $ | 150,000 | $ | 148,765 | $ | 200,000 | $ | 177,410 | ||||||||
Seller financed loan (3) | Level 2 | $ | — | $ | — | $ | 13,726 | $ | 13,189 |
(1) | The book value of the Senior Notes is net of discounts, excluding deferred loan costs of $22.3 million and $20.9 million as of June 30, 2017 and December 31, 2016, respectively. The estimated fair value of the Senior Notes at June 30, 2017 and December 31, 2016 is based on quoted market prices. |
(2) | The estimated fair value of the Credit Facility at June 30, 2017 and December 31, 2016 is based on a treasury curve analysis. |
(3) | The estimated fair value of the seller financed loan at December 31, 2016 is based on a treasury curve analysis. |
Six Months Ended June 30, 2017 | Year Ended December 31, 2016 | ||||||||||||||
Impairment Charge | Fair Value Net of Impairment | Impairment Charge | Fair Value Net of Impairment | ||||||||||||
Real estate inventories (1) | $ | 267 | $ | 1,574 | $ | — | $ | — |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Warranty reserves, beginning of period(1) | $ | 80,953 | $ | 45,419 | $ | 83,135 | $ | 45,948 | |||||||
Warranty reserves accrued | 3,794 | 2,971 | 5,674 | 5,044 | |||||||||||
Adjustments to pre-existing reserves | 699 | 260 | 621 | 260 | |||||||||||
Warranty expenditures | (5,318 | ) | (3,378 | ) | (9,302 | ) | (5,980 | ) | |||||||
Warranty reserves, end of period | $ | 80,128 | $ | 45,272 | $ | 80,128 | $ | 45,272 |
(1) | Included in the 2017 opening balance is approximately $38.0 million of additional warranty liabilities estimated to be covered by our insurance policies that were adjusted to present the warranty reserves and related estimated warranty insurance receivable on a gross basis at December 31, 2016. Of the $38.0 million, approximately $36.5 million related to prior year estimated warranty insurance recoveries. |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Total stock-based compensation | $ | 3,903 | $ | 3,758 | $ | 7,744 | $ | 6,363 |
Options | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value (in thousands) | ||||||||||
Options outstanding at December 31, 2016 | 2,971,370 | $ | 13.12 | 4.4 | $ | 1,568 | |||||||
Granted | — | — | — | — | |||||||||
Exercised | (234,219 | ) | 10.46 | — | — | ||||||||
Forfeited | (590,403 | ) | 14.40 | — | — | ||||||||
Options outstanding at June 30, 2017 | 2,146,748 | 13.27 | 5.1 | 2,555 | |||||||||
Options exercisable at June 30, 2017 | 2,030,368 | 13.21 | 5.0 | 2,555 |
Restricted Stock Units | Weighted Average Grant Date Fair Value Per Share | Aggregate Intrinsic Value (in thousands) | ||||||||
Nonvested RSUs at December 31, 2016 | 3,412,719 | $ | 9.77 | $ | 39,178 | |||||
Granted | 1,670,936 | 11.00 | 22,040 | |||||||
Vested | (714,612 | ) | 12.34 | — | ||||||
Forfeited | (40,353 | ) | 11.68 | — | ||||||
Nonvested RSUs at June 30, 2017 | 4,328,690 | 9.80 | 57,095 |
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Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
Supplemental disclosure of cash flow information: | |||||||
Cash paid during the period for: | |||||||
Interest, net of amounts capitalized of $43,573 and $31,429 (Note 5) | $ | — | $ | — | |||
Income taxes | $ | 10,950 | $ | 55,270 | |||
Supplemental disclosures of noncash activities: | |||||||
Amortization of senior note discount capitalized to real estate inventory | $ | 1,010 | $ | 855 | |||
Amortization of deferred loan costs capitalized to real estate inventory | $ | 2,648 | $ | 1,791 | |||
Effect of net consolidation and de-consolidation of variable interest entities: | |||||||
Decrease in consolidated real estate inventory not owned | $ | (3,275 | ) | $ | (2,616 | ) | |
Decrease in noncontrolling interests | $ | 3,275 | $ | 2,616 |
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June 30, 2017 | |||||||||||||||
Issuer | Guarantor Subsidiaries | Consolidating Adjustments | Consolidated TRI Pointe Group, Inc. | ||||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 48,305 | $ | 66,640 | $ | — | $ | 114,945 | |||||||
Receivables | 16,436 | 56,567 | — | 73,003 | |||||||||||
Intercompany receivables | 961,964 | — | (961,964 | ) | — | ||||||||||
Real estate inventories | 922,893 | 2,285,448 | — | 3,208,341 | |||||||||||
Investments in unconsolidated entities | — | 18,787 | — | 18,787 | |||||||||||
Goodwill and other intangible assets, net | 156,604 | 4,624 | — | 161,228 | |||||||||||
Investments in subsidiaries | 1,328,681 | — | (1,328,681 | ) | — | ||||||||||
Deferred tax assets, net | 15,644 | 101,938 | — | 117,582 | |||||||||||
Other assets | 8,127 | 49,984 | — | 58,111 | |||||||||||
Total Assets | $ | 3,458,654 | $ | 2,583,988 | $ | (2,290,645 | ) | $ | 3,751,997 | ||||||
Liabilities | |||||||||||||||
Accounts payable | $ | 8,208 | $ | 55,043 | $ | — | $ | 63,251 | |||||||
Intercompany payables | — | 961,964 | (961,964 | ) | — | ||||||||||
Accrued expenses and other liabilities | 54,631 | 223,386 | — | 278,017 | |||||||||||
Unsecured revolving credit facility | 150,000 | — | — | 150,000 | |||||||||||
Senior notes | 1,467,861 | — | — | 1,467,861 | |||||||||||
Total Liabilities | 1,680,700 | 1,240,393 | (961,964 | ) | 1,959,129 | ||||||||||
Equity | |||||||||||||||
Total stockholders’ equity | 1,777,954 | 1,328,681 | (1,328,681 | ) | 1,777,954 | ||||||||||
Noncontrolling interests | — | 14,914 | — | 14,914 | |||||||||||
Total Equity | 1,777,954 | 1,343,595 | (1,328,681 | ) | 1,792,868 | ||||||||||
Total Liabilities and Equity | $ | 3,458,654 | $ | 2,583,988 | $ | (2,290,645 | ) | $ | 3,751,997 |
December 31, 2016 | |||||||||||||||
Issuer | Guarantor Subsidiaries | Consolidating Adjustments | Consolidated TRI Pointe Group, Inc. | ||||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 141,568 | $ | 67,089 | $ | — | $ | 208,657 | |||||||
Receivables | 26,692 | 55,808 | — | 82,500 | |||||||||||
Intercompany receivables | 775,321 | — | (775,321 | ) | — | ||||||||||
Real estate inventories | 868,088 | 2,042,539 | — | 2,910,627 | |||||||||||
Investments in unconsolidated entities | — | 17,546 | — | 17,546 | |||||||||||
Goodwill and other intangible assets, net | 156,604 | 4,891 | — | 161,495 | |||||||||||
Investments in subsidiaries | 1,285,295 | — | (1,285,295 | ) | — | ||||||||||
Deferred tax assets, net | 15,644 | 107,579 | — | 123,223 | |||||||||||
Other assets | 11,401 | 49,191 | — | 60,592 | |||||||||||
Total Assets | $ | 3,280,613 | $ | 2,344,643 | $ | (2,060,616 | ) | $ | 3,564,640 | ||||||
Liabilities | |||||||||||||||
Accounts payable | $ | 20,637 | $ | 49,615 | $ | — | $ | 70,252 | |||||||
Intercompany payables | — | 775,321 | (775,321 | ) | — | ||||||||||
Accrued expenses and other liabilities | 48,496 | 215,349 | — | 263,845 | |||||||||||
Unsecured revolving credit facility | 200,000 | — | — | 200,000 | |||||||||||
Seller financed loans | 13,726 | — | — | 13,726 | |||||||||||
Senior notes | 1,168,307 | — | — | 1,168,307 | |||||||||||
Total Liabilities | 1,451,166 | 1,040,285 | (775,321 | ) | 1,716,130 | ||||||||||
Equity | |||||||||||||||
Total stockholders’ equity | 1,829,447 | 1,285,295 | (1,285,295 | ) | 1,829,447 | ||||||||||
Noncontrolling interests | — | 19,063 | — | 19,063 | |||||||||||
Total Equity | 1,829,447 | 1,304,358 | (1,285,295 | ) | 1,848,510 | ||||||||||
Total Liabilities and Equity | $ | 3,280,613 | $ | 2,344,643 | $ | (2,060,616 | ) | $ | 3,564,640 |
Three Months Ended June 30, 2017 | |||||||||||||||
Issuer | Guarantor Subsidiaries | Consolidating Adjustments | Consolidated TRI Pointe Group, Inc. | ||||||||||||
Homebuilding: | |||||||||||||||
Home sales revenue | $ | 154,212 | $ | 414,604 | $ | — | $ | 568,816 | |||||||
Land and lot sales revenue | — | 865 | — | 865 | |||||||||||
Other operations revenue | — | 600 | — | 600 | |||||||||||
Total revenues | 154,212 | 416,069 | — | 570,281 | |||||||||||
Cost of home sales | 132,859 | 321,382 | — | 454,241 | |||||||||||
Cost of land and lot sales | — | 644 | — | 644 | |||||||||||
Other operations expense | — | 591 | — | 591 | |||||||||||
Sales and marketing | 6,966 | 25,364 | — | 32,330 | |||||||||||
General and administrative | 16,304 | 17,384 | — | 33,688 | |||||||||||
Homebuilding (loss) income from operations | (1,917 | ) | 50,704 | — | 48,787 | ||||||||||
Equity in income of unconsolidated entities | — | 1,508 | — | 1,508 | |||||||||||
Other income, net | 9 | 35 | — | 44 | |||||||||||
Homebuilding (loss) income before income taxes | (1,908 | ) | 52,247 | — | 50,339 | ||||||||||
Financial Services: | |||||||||||||||
Revenues | — | 345 | — | 345 | |||||||||||
Expenses | — | 77 | — | 77 | |||||||||||
Equity in income of unconsolidated entities | — | 1,294 | — | 1,294 | |||||||||||
Financial services income before income taxes | — | 1,562 | — | 1,562 | |||||||||||
(Loss) income before income taxes | (1,908 | ) | 53,809 | — | 51,901 | ||||||||||
Equity of net income of subsidiaries | 34,415 | — | (34,415 | ) | — | ||||||||||
Benefit (provision) for income taxes | 207 | (19,305 | ) | — | (19,098 | ) | |||||||||
Net income | 32,714 | 34,504 | (34,415 | ) | 32,803 | ||||||||||
Net income attributable to noncontrolling interests | — | (89 | ) | — | (89 | ) | |||||||||
Net income available to common stockholders | $ | 32,714 | $ | 34,415 | $ | (34,415 | ) | $ | 32,714 |
Three Months Ended June 30, 2016 | |||||||||||||||
Issuer | Guarantor Subsidiaries | Consolidating Adjustments | Consolidated TRI Pointe Group, Inc. | ||||||||||||
Homebuilding: | |||||||||||||||
Home sales revenue | $ | 152,827 | $ | 404,098 | $ | — | $ | 556,925 | |||||||
Land and lot sales revenue | — | 67,314 | — | 67,314 | |||||||||||
Other operations revenue | — | 604 | — | 604 | |||||||||||
Total revenues | 152,827 | 472,016 | — | 624,843 | |||||||||||
Cost of home sales | 128,905 | 303,833 | — | 432,738 | |||||||||||
Cost of land and lot sales | — | 14,460 | — | 14,460 | |||||||||||
Other operations expense | — | 583 | — | 583 | |||||||||||
Sales and marketing | 7,021 | 25,427 | — | 32,448 | |||||||||||
General and administrative | 14,580 | 15,904 | — | 30,484 | |||||||||||
Homebuilding income from operations | 2,321 | 111,809 | — | 114,130 | |||||||||||
Equity in income of unconsolidated entities | — | 215 | — | 215 | |||||||||||
Other income, net | 145 | 6 | — | 151 | |||||||||||
Homebuilding income before income taxes | 2,466 | 112,030 | — | 114,496 | |||||||||||
Financial Services: | |||||||||||||||
Revenues | — | 379 | — | 379 | |||||||||||
Expenses | — | 53 | — | 53 | |||||||||||
Equity in income of unconsolidated entities | — | 1,284 | — | 1,284 | |||||||||||
Financial services income before income taxes | — | 1,610 | — | 1,610 | |||||||||||
Income before income taxes | 2,466 | 113,640 | — | 116,106 | |||||||||||
Equity of net income of subsidiaries | 73,154 | — | (73,154 | ) | — | ||||||||||
Provision for income taxes | (1,694 | ) | (40,219 | ) | — | (41,913 | ) | ||||||||
Net income | 73,926 | 73,421 | (73,154 | ) | 74,193 | ||||||||||
Net income attributable to noncontrolling interests | — | (267 | ) | — | (267 | ) | |||||||||
Net income available to common stockholders | $ | 73,926 | $ | 73,154 | $ | (73,154 | ) | $ | 73,926 |
Six Months Ended June 30, 2017 | |||||||||||||||
Issuer | Guarantor Subsidiaries | Consolidating Adjustments | Consolidated TRI Pointe Group, Inc. | ||||||||||||
Homebuilding: | |||||||||||||||
Home sales revenue | $ | 285,049 | $ | 675,771 | $ | — | $ | 960,820 | |||||||
Land and lot sales revenue | — | 1,443 | — | 1,443 | |||||||||||
Other operations revenue | — | 1,168 | — | 1,168 | |||||||||||
Total revenues | 285,049 | 678,382 | — | 963,431 | |||||||||||
Cost of home sales | 245,117 | 527,528 | — | 772,645 | |||||||||||
Cost of land and lot sales | — | 1,298 | — | 1,298 | |||||||||||
Other operations expense | — | 1,151 | — | 1,151 | |||||||||||
Sales and marketing | 13,449 | 45,581 | — | 59,030 | |||||||||||
General and administrative | 33,553 | 34,784 | — | 68,337 | |||||||||||
Homebuilding income from operations | (7,070 | ) | 68,040 | — | 60,970 | ||||||||||
Equity in income of unconsolidated entities | — | 1,646 | — | 1,646 | |||||||||||
Other income, net | 18 | 103 | — | 121 | |||||||||||
Homebuilding (loss) income before income taxes | (7,052 | ) | 69,789 | — | 62,737 | ||||||||||
Financial Services: | |||||||||||||||
Revenues | — | 586 | — | 586 | |||||||||||
Expenses | — | 151 | — | 151 | |||||||||||
Equity in income of unconsolidated entities | — | 1,560 | — | 1,560 | |||||||||||
Financial services income before income taxes | — | 1,995 | — | 1,995 | |||||||||||
(Loss) income before income taxes | (7,052 | ) | 71,784 | — | 64,732 | ||||||||||
Equity of net income of subsidiaries | 43,452 | — | (43,452 | ) | — | ||||||||||
Benefit (provision) for income taxes | 4,507 | (28,219 | ) | (23,712 | ) | ||||||||||
Net income | 40,907 | 43,565 | (43,452 | ) | 41,020 | ||||||||||
Net income attributable to noncontrolling interests | — | (113 | ) | — | (113 | ) | |||||||||
Net income available to common stockholders | $ | 40,907 | $ | 43,452 | $ | (43,452 | ) | $ | 40,907 |
Six Months Ended June 30, 2016 | |||||||||||||||
Issuer | Guarantor Subsidiaries | Consolidating Adjustments | Consolidated TRI Pointe Group, Inc. | ||||||||||||
Homebuilding: | |||||||||||||||
Home sales revenue | $ | 284,784 | $ | 695,196 | $ | — | $ | 979,980 | |||||||
Land and lot sales revenue | — | 67,669 | — | 67,669 | |||||||||||
Other operations revenue | — | 1,184 | — | 1,184 | |||||||||||
Total revenues | 284,784 | 764,049 | — | 1,048,833 | |||||||||||
Cost of home sales | 239,357 | 517,880 | — | 757,237 | |||||||||||
Cost of land and lot sales | — | 15,239 | — | 15,239 | |||||||||||
Other operations expense | — | 1,149 | — | 1,149 | |||||||||||
Sales and marketing | 13,085 | 45,684 | — | 58,769 | |||||||||||
General and administrative | 27,792 | 31,223 | — | 59,015 | |||||||||||
Homebuilding income from operations | 4,550 | 152,874 | — | 157,424 | |||||||||||
Equity in income of unconsolidated entities | — | 201 | — | 201 | |||||||||||
Other income (loss), net | 502 | (236 | ) | — | 266 | ||||||||||
Homebuilding income before income taxes | 5,052 | 152,839 | — | 157,891 | |||||||||||
Financial Services: | |||||||||||||||
Revenues | — | 527 | — | 527 | |||||||||||
Expenses | — | 111 | — | 111 | |||||||||||
Equity in income of unconsolidated entities | — | 1,999 | — | 1,999 | |||||||||||
Financial services income before income taxes | — | 2,415 | — | 2,415 | |||||||||||
Income before income taxes | 5,052 | 155,254 | — | 160,306 | |||||||||||
Equity of net income of subsidiaries | 100,385 | — | (100,385 | ) | — | ||||||||||
Provision for income taxes | (2,961 | ) | (54,442 | ) | — | (57,403 | ) | ||||||||
Net income | 102,476 | 100,812 | (100,385 | ) | 102,903 | ||||||||||
Net income attributable to noncontrolling interests | — | (427 | ) | — | (427 | ) | |||||||||
Net income available to common stockholders | $ | 102,476 | $ | 100,385 | $ | (100,385 | ) | $ | 102,476 |
Six Months Ended June 30, 2017 | |||||||||||||||
Issuer | Guarantor Subsidiaries | Consolidating Adjustments | Consolidated TRI Pointe Group, Inc. | ||||||||||||
Cash flows from operating activities | |||||||||||||||
Net cash used in operating activities | $ | (38,171 | ) | $ | (182,529 | ) | $ | — | $ | (220,700 | ) | ||||
Cash flows from investing activities: | |||||||||||||||
Purchases of property and equipment | (1,232 | ) | (561 | ) | — | (1,793 | ) | ||||||||
Proceeds from sale of property and equipment | — | 6 | — | 6 | |||||||||||
Investments in unconsolidated entities | — | (462 | ) | — | (462 | ) | |||||||||
Intercompany | (184,084 | ) | — | 184,084 | — | ||||||||||
Net cash (used in) provided by investing activities | (185,316 | ) | (1,017 | ) | 184,084 | (2,249 | ) | ||||||||
Cash flows from financing activities: | |||||||||||||||
Borrowings from debt | 450,000 | — | — | 450,000 | |||||||||||
Repayment of debt | (213,726 | ) | — | — | (213,726 | ) | |||||||||
Debt issuance costs | (5,906 | ) | — | — | (5,906 | ) | |||||||||
Distributions to noncontrolling interests | — | (987 | ) | — | (987 | ) | |||||||||
Proceeds from issuance of common stock under share-based awards | 2,449 | — | — | 2,449 | |||||||||||
Minimum tax withholding paid on behalf of employees for restricted stock units | (2,896 | ) | — | — | (2,896 | ) | |||||||||
Share repurchases | (99,697 | ) | — | — | (99,697 | ) | |||||||||
Intercompany | — | 184,084 | (184,084 | ) | — | ||||||||||
Net cash provided by (used in) financing activities | 130,224 | 183,097 | (184,084 | ) | 129,237 | ||||||||||
Net decrease in cash and cash equivalents | (93,263 | ) | (449 | ) | — | (93,712 | ) | ||||||||
Cash and cash equivalents - beginning of period | 141,568 | 67,089 | — | 208,657 | |||||||||||
Cash and cash equivalents - end of period | $ | 48,305 | $ | 66,640 | $ | — | $ | 114,945 |
Six Months Ended June 30, 2016 | |||||||||||||||
Issuer | Guarantor Subsidiaries | Consolidating Adjustments | Consolidated TRI Pointe Group, Inc. | ||||||||||||
Cash flows from operating activities | |||||||||||||||
Net cash used in operating activities | $ | (149,745 | ) | $ | (36,451 | ) | $ | — | $ | (186,196 | ) | ||||
Cash flows from investing activities: | |||||||||||||||
Purchases of property and equipment | (372 | ) | (751 | ) | — | (1,123 | ) | ||||||||
Investments in unconsolidated entities | — | (32 | ) | — | (32 | ) | |||||||||
Distributions from unconsolidated entities | — | — | — | ||||||||||||
Intercompany | (39,469 | ) | — | 39,469 | — | ||||||||||
Net cash (used in) provided by investing activities | (39,841 | ) | (783 | ) | 39,469 | (1,155 | ) | ||||||||
Cash flows from financing activities: | |||||||||||||||
Borrowings from notes payable | 392,758 | — | — | 392,758 | |||||||||||
Repayment of notes payable | (276,426 | ) | (400 | ) | — | (276,826 | ) | ||||||||
Debt issuance costs | (5,110 | ) | — | — | (5,110 | ) | |||||||||
Net repayments of debt held by variable interest entities | — | (2,297 | ) | — | (2,297 | ) | |||||||||
Net proceeds of debt held by variable interest entities | — | — | — | — | |||||||||||
Contributions from noncontrolling interests | — | 1,810 | — | 1,810 | |||||||||||
Distributions to noncontrolling interests | — | (3,921 | ) | — | (3,921 | ) | |||||||||
Proceeds from issuance of common stock under share-based awards | 18 | — | — | 18 | |||||||||||
Excess tax benefits of share-based awards | — | — | — | — | |||||||||||
Minimum tax withholding paid on behalf of employees for restricted stock units | (1,359 | ) | — | — | (1,359 | ) | |||||||||
Share repurchases | (14,698 | ) | — | — | (14,698 | ) | |||||||||
Intercompany | — | 39,469 | (39,469 | ) | — | ||||||||||
Net cash provided by (used in) financing activities | 95,183 | 34,661 | (39,469 | ) | 90,375 | ||||||||||
Net decrease in cash and cash equivalents | (94,403 | ) | (2,573 | ) | — | (96,976 | ) | ||||||||
Cash and cash equivalents - beginning of period | 147,771 | 66,714 | — | 214,485 | |||||||||||
Cash and cash equivalents - end of period | $ | 53,368 | $ | 64,141 | $ | — | $ | 117,509 |
|
• | Level 1—Quoted prices for identical instruments in active markets |
• | Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date |
• | Level 3—Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | |||||||||||||||
Maracay Homes | $ | 75,754 | $ | 47,857 | $ | 126,814 | $ | 93,294 | |||||||
Pardee Homes | 180,377 | 240,230 | 264,076 | 359,163 | |||||||||||
Quadrant Homes | 40,266 | 59,163 | 80,818 | 105,221 | |||||||||||
Trendmaker Homes | 65,466 | 64,472 | 117,828 | 108,258 | |||||||||||
TRI Pointe Homes | 154,213 | 152,827 | 285,049 | 284,784 | |||||||||||
Winchester Homes | 54,205 | 60,294 | 88,846 | 98,113 | |||||||||||
Total homebuilding revenues | 570,281 | 624,843 | 963,431 | 1,048,833 | |||||||||||
Financial services | 345 | 379 | 586 | 527 | |||||||||||
Total | $ | 570,626 | $ | 625,222 | $ | 964,017 | $ | 1,049,360 | |||||||
Income (loss) before income taxes | |||||||||||||||
Maracay Homes | $ | 6,241 | $ | 2,523 | $ | 7,998 | $ | 5,159 | |||||||
Pardee Homes | 36,270 | 96,079 | 46,163 | 128,210 | |||||||||||
Quadrant Homes | 3,109 | 5,615 | 6,853 | 9,311 | |||||||||||
Trendmaker Homes | 4,542 | 3,865 | 6,424 | 5,923 | |||||||||||
TRI Pointe Homes | 8,958 | 12,213 | 15,397 | 22,928 | |||||||||||
Winchester Homes | 2,219 | 3,992 | 2,619 | 4,653 | |||||||||||
Corporate | (11,000 | ) | (9,791 | ) | (22,717 | ) | (18,293 | ) | |||||||
Total homebuilding income before income taxes | 50,339 | 114,496 | 62,737 | 157,891 | |||||||||||
Financial services | 1,562 | 1,610 | 1,995 | 2,415 | |||||||||||
Total | $ | 51,901 | $ | 116,106 | $ | 64,732 | $ | 160,306 |
June 30, 2017 | December 31, 2016 | ||||||
Real estate inventories | |||||||
Maracay Homes | $ | 257,404 | $ | 228,965 | |||
Pardee Homes | 1,246,576 | 1,098,608 | |||||
Quadrant Homes | 270,416 | 221,386 | |||||
Trendmaker Homes | 212,917 | 211,035 | |||||
TRI Pointe Homes | 922,893 | 868,088 | |||||
Winchester Homes | 298,135 | 282,545 | |||||
Total | $ | 3,208,341 | $ | 2,910,627 | |||
Total assets | |||||||
Maracay Homes | $ | 278,566 | $ | 255,466 | |||
Pardee Homes | 1,353,869 | 1,201,302 | |||||
Quadrant Homes | 286,542 | 242,208 | |||||
Trendmaker Homes | 227,390 | 225,025 | |||||
TRI Pointe Homes | 1,089,350 | 1,052,400 | |||||
Winchester Homes | 324,998 | 305,379 | |||||
Corporate | 182,680 | 275,923 | |||||
Total homebuilding assets | 3,743,395 | 3,557,703 | |||||
Financial services | 8,602 | 6,937 | |||||
Total | $ | 3,751,997 | $ | 3,564,640 |
|
June 30, 2017 | December 31, 2016 | ||||||
Escrow proceeds and other accounts receivable, net | $ | 26,736 | $ | 35,625 | |||
Warranty insurance receivable (Note 13) | 46,267 | 46,875 | |||||
Total receivables | $ | 73,003 | $ | 82,500 |
|
June 30, 2017 | December 31, 2016 | ||||||
Real estate inventories owned: | |||||||
Homes completed or under construction | $ | 1,039,687 | $ | 659,210 | |||
Land under development | 1,796,335 | 1,824,989 | |||||
Land held for future development | 135,695 | 226,915 | |||||
Model homes | 188,493 | 155,039 | |||||
Total real estate inventories owned | 3,160,210 | 2,866,153 | |||||
Real estate inventories not owned: | |||||||
Land purchase and land option deposits | 33,231 | 26,174 | |||||
Consolidated inventory held by VIEs | 14,900 | 18,300 | |||||
Total real estate inventories not owned | 48,131 | 44,474 | |||||
Total real estate inventories | $ | 3,208,341 | $ | 2,910,627 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest incurred | $ | 19,931 | $ | 16,280 | $ | 38,804 | $ | 31,429 | |||||||
Interest capitalized | (19,931 | ) | (16,280 | ) | (38,804 | ) | (31,429 | ) | |||||||
Interest expensed | $ | — | $ | — | $ | — | $ | — | |||||||
Capitalized interest in beginning inventory | $ | 166,515 | $ | 146,630 | $ | 157,329 | $ | 140,311 | |||||||
Interest capitalized as a cost of inventory | 19,931 | 16,280 | 38,804 | 31,429 | |||||||||||
Interest previously capitalized as a cost of inventory, included in cost of sales | (13,185 | ) | (11,563 | ) | (22,872 | ) | (20,393 | ) | |||||||
Capitalized interest in ending inventory | $ | 173,261 | $ | 151,347 | $ | 173,261 | $ | 151,347 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Real estate inventory impairments | $ | 234 | $ | — | $ | 267 | $ | — | |||||||
Land and lot option abandonments and pre-acquisition charges | 273 | 107 | 561 | 289 | |||||||||||
Total | $ | 507 | $ | 107 | $ | 828 | $ | 289 |
|
June 30, 2017 | December 31, 2016 | ||||||
Limited liability company interests | $ | 15,604 | $ | 14,327 | |||
General partnership interests | 3,183 | 3,219 | |||||
Total | $ | 18,787 | $ | 17,546 |
June 30, 2017 | December 31, 2016 | ||||||
Assets | |||||||
Cash | $ | 11,674 | $ | 9,796 | |||
Receivables | 5,254 | 10,203 | |||||
Real estate inventories | 97,800 | 97,402 | |||||
Other assets | 944 | 1,087 | |||||
Total assets | $ | 115,672 | $ | 118,488 | |||
Liabilities and equity | |||||||
Accounts payable and other liabilities | $ | 9,107 | $ | 12,844 | |||
Company’s equity | 18,787 | 17,546 | |||||
Outside interests' equity | 87,778 | 88,098 | |||||
Total liabilities and equity | $ | 115,672 | $ | 118,488 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net sales | $ | 5,228 | $ | 4,688 | $ | 10,318 | $ | 7,897 | |||||||
Other operating expense | (3,579 | ) | (3,004 | ) | (6,182 | ) | (5,154 | ) | |||||||
Other income | 22 | 1 | 24 | 2 | |||||||||||
Net income | $ | 1,671 | $ | 1,685 | $ | 4,160 | $ | 2,745 | |||||||
Company’s equity in income of unconsolidated entities | $ | 2,802 | $ | 1,499 | $ | 3,206 | $ | 2,200 |
|
June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Deposits | Remaining Purchase Price | Consolidated Inventory Held by VIEs | Deposits | Remaining Purchase Price | Consolidated Inventory Held by VIEs | ||||||||||||||||||
Consolidated VIEs | $ | 675 | $ | 14,225 | $ | 14,900 | $ | 400 | $ | 17,900 | $ | 18,300 | |||||||||||
Unconsolidated VIEs | 6,375 | 145,232 | N/A | 2,375 | 49,016 | N/A | |||||||||||||||||
Other land option agreements | 26,856 | 264,060 | N/A | 23,799 | 246,658 | N/A | |||||||||||||||||
Total | $ | 33,906 | $ | 423,517 | $ | 14,900 | $ | 26,574 | $ | 313,574 | $ | 18,300 |
|
June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Goodwill | $ | 139,304 | $ | — | $ | 139,304 | $ | 139,304 | $ | — | $ | 139,304 | |||||||||||
Trade names | 27,979 | (6,055 | ) | 21,924 | 27,979 | (5,788 | ) | 22,191 | |||||||||||||||
Total | $ | 167,283 | $ | (6,055 | ) | $ | 161,228 | $ | 167,283 | $ | (5,788 | ) | $ | 161,495 |
Remainder of 2017 | $ | 267 | |
2018 | 534 | ||
2019 | 534 | ||
2020 | 534 | ||
2021 | 534 | ||
Thereafter | 2,221 | ||
Total | $ | 4,624 |
|
June 30, 2017 | December 31, 2016 | ||||||
Prepaid expenses | $ | 19,562 | $ | 24,495 | |||
Refundable fees and other deposits | 17,398 | 17,731 | |||||
Development rights, held for future use or sale | 2,569 | 2,569 | |||||
Deferred loan costs - unsecured revolving credit facility | 3,904 | 2,101 | |||||
Operating properties and equipment, net | 11,010 | 10,884 | |||||
Income tax receivable | 1,336 | — | |||||
Other | 2,332 | 2,812 | |||||
Total | $ | 58,111 | $ | 60,592 |
|
June 30, 2017 | December 31, 2016 | ||||||
Accrued payroll and related costs | $ | 22,461 | $ | 33,761 | |||
Warranty reserves (Note 13) | 80,128 | 83,135 | |||||
Estimated cost for completion of real estate inventories | 77,802 | 59,531 | |||||
Customer deposits | 27,625 | 13,437 | |||||
Income tax liability to Weyerhaeuser (Note 16) | 8,610 | 8,589 | |||||
Accrued income taxes payable | 9,116 | 1,200 | |||||
Accrued interest | 3,143 | 11,570 | |||||
Other tax liability | 35,073 | 34,961 | |||||
Other | 14,059 | 17,661 | |||||
Total | $ | 278,017 | $ | 263,845 |
|
June 30, 2017 | December 31, 2016 | ||||||
4.375% Senior Notes due June 15, 2019 | $ | 450,000 | $ | 450,000 | |||
4.875% Senior Notes due July 1, 2021 | 300,000 | 300,000 | |||||
5.875% Senior Notes due June 15, 2024 | 450,000 | 450,000 | |||||
5.250% Senior Notes due June 1, 2027 | 300,000 | — | |||||
Discount and deferred loan costs | (32,139 | ) | (31,693 | ) | |||
Total | $ | 1,467,861 | $ | 1,168,307 |
June 30, 2017 | December 31, 2016 | ||||||
Unsecured revolving credit facility | $ | 150,000 | $ | 200,000 |
June 30, 2017 | December 31, 2016 | ||||||
Seller financed loans | $ | — | $ | 13,726 |
|
June 30, 2017 | December 31, 2016 | ||||||||||||||||
Hierarchy | Book Value | Fair Value | Book Value | Fair Value | |||||||||||||
Senior Notes (1) | Level 2 | $ | 1,490,190 | $ | 1,551,750 | $ | 1,189,180 | $ | 1,219,125 | ||||||||
Unsecured revolving credit facility (2) | Level 2 | $ | 150,000 | $ | 148,765 | $ | 200,000 | $ | 177,410 | ||||||||
Seller financed loan (3) | Level 2 | $ | — | $ | — | $ | 13,726 | $ | 13,189 |
(1) | The book value of the Senior Notes is net of discounts, excluding deferred loan costs of $22.3 million and $20.9 million as of June 30, 2017 and December 31, 2016, respectively. The estimated fair value of the Senior Notes at June 30, 2017 and December 31, 2016 is based on quoted market prices. |
(2) | The estimated fair value of the Credit Facility at June 30, 2017 and December 31, 2016 is based on a treasury curve analysis. |
(3) | The estimated fair value of the seller financed loan at December 31, 2016 is based on a treasury curve analysis. |
Six Months Ended June 30, 2017 | Year Ended December 31, 2016 | ||||||||||||||
Impairment Charge | Fair Value Net of Impairment | Impairment Charge | Fair Value Net of Impairment | ||||||||||||
Real estate inventories (1) | $ | 267 | $ | 1,574 | $ | — | $ | — |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Warranty reserves, beginning of period(1) | $ | 80,953 | $ | 45,419 | $ | 83,135 | $ | 45,948 | |||||||
Warranty reserves accrued | 3,794 | 2,971 | 5,674 | 5,044 | |||||||||||
Adjustments to pre-existing reserves | 699 | 260 | 621 | 260 | |||||||||||
Warranty expenditures | (5,318 | ) | (3,378 | ) | (9,302 | ) | (5,980 | ) | |||||||
Warranty reserves, end of period | $ | 80,128 | $ | 45,272 | $ | 80,128 | $ | 45,272 |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Total stock-based compensation | $ | 3,903 | $ | 3,758 | $ | 7,744 | $ | 6,363 |
Options | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value (in thousands) | ||||||||||
Options outstanding at December 31, 2016 | 2,971,370 | $ | 13.12 | 4.4 | $ | 1,568 | |||||||
Granted | — | — | — | — | |||||||||
Exercised | (234,219 | ) | 10.46 | — | — | ||||||||
Forfeited | (590,403 | ) | 14.40 | — | — | ||||||||
Options outstanding at June 30, 2017 | 2,146,748 | 13.27 | 5.1 | 2,555 | |||||||||
Options exercisable at June 30, 2017 | 2,030,368 | 13.21 | 5.0 | 2,555 |
Restricted Stock Units | Weighted Average Grant Date Fair Value Per Share | Aggregate Intrinsic Value (in thousands) | ||||||||
Nonvested RSUs at December 31, 2016 | 3,412,719 | $ | 9.77 | $ | 39,178 | |||||
Granted | 1,670,936 | 11.00 | 22,040 | |||||||
Vested | (714,612 | ) | 12.34 | — | ||||||
Forfeited | (40,353 | ) | 11.68 | — | ||||||
Nonvested RSUs at June 30, 2017 | 4,328,690 | 9.80 | 57,095 |
|
Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
Supplemental disclosure of cash flow information: | |||||||
Cash paid during the period for: | |||||||
Interest, net of amounts capitalized of $43,573 and $31,429 (Note 5) | $ | — | $ | — | |||
Income taxes | $ | 10,950 | $ | 55,270 | |||
Supplemental disclosures of noncash activities: | |||||||
Amortization of senior note discount capitalized to real estate inventory | $ | 1,010 | $ | 855 | |||
Amortization of deferred loan costs capitalized to real estate inventory | $ | 2,648 | $ | 1,791 | |||
Effect of net consolidation and de-consolidation of variable interest entities: | |||||||
Decrease in consolidated real estate inventory not owned | $ | (3,275 | ) | $ | (2,616 | ) | |
Decrease in noncontrolling interests | $ | 3,275 | $ | 2,616 |
|
June 30, 2017 | |||||||||||||||
Issuer | Guarantor Subsidiaries | Consolidating Adjustments | Consolidated TRI Pointe Group, Inc. | ||||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 48,305 | $ | 66,640 | $ | — | $ | 114,945 | |||||||
Receivables | 16,436 | 56,567 | — | 73,003 | |||||||||||
Intercompany receivables | 961,964 | — | (961,964 | ) | — | ||||||||||
Real estate inventories | 922,893 | 2,285,448 | — | 3,208,341 | |||||||||||
Investments in unconsolidated entities | — | 18,787 | — | 18,787 | |||||||||||
Goodwill and other intangible assets, net | 156,604 | 4,624 | — | 161,228 | |||||||||||
Investments in subsidiaries | 1,328,681 | — | (1,328,681 | ) | — | ||||||||||
Deferred tax assets, net | 15,644 | 101,938 | — | 117,582 | |||||||||||
Other assets | 8,127 | 49,984 | — | 58,111 | |||||||||||
Total Assets | $ | 3,458,654 | $ | 2,583,988 | $ | (2,290,645 | ) | $ | 3,751,997 | ||||||
Liabilities | |||||||||||||||
Accounts payable | $ | 8,208 | $ | 55,043 | $ | — | $ | 63,251 | |||||||
Intercompany payables | — | 961,964 | (961,964 | ) | — | ||||||||||
Accrued expenses and other liabilities | 54,631 | 223,386 | — | 278,017 | |||||||||||
Unsecured revolving credit facility | 150,000 | — | — | 150,000 | |||||||||||
Senior notes | 1,467,861 | — | — | 1,467,861 | |||||||||||
Total Liabilities | 1,680,700 | 1,240,393 | (961,964 | ) | 1,959,129 | ||||||||||
Equity | |||||||||||||||
Total stockholders’ equity | 1,777,954 | 1,328,681 | (1,328,681 | ) | 1,777,954 | ||||||||||
Noncontrolling interests | — | 14,914 | — | 14,914 | |||||||||||
Total Equity | 1,777,954 | 1,343,595 | (1,328,681 | ) | 1,792,868 | ||||||||||
Total Liabilities and Equity | $ | 3,458,654 | $ | 2,583,988 | $ | (2,290,645 | ) | $ | 3,751,997 |
December 31, 2016 | |||||||||||||||
Issuer | Guarantor Subsidiaries | Consolidating Adjustments | Consolidated TRI Pointe Group, Inc. | ||||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 141,568 | $ | 67,089 | $ | — | $ | 208,657 | |||||||
Receivables | 26,692 | 55,808 | — | 82,500 | |||||||||||
Intercompany receivables | 775,321 | — | (775,321 | ) | — | ||||||||||
Real estate inventories | 868,088 | 2,042,539 | — | 2,910,627 | |||||||||||
Investments in unconsolidated entities | — | 17,546 | — | 17,546 | |||||||||||
Goodwill and other intangible assets, net | 156,604 | 4,891 | — | 161,495 | |||||||||||
Investments in subsidiaries | 1,285,295 | — | (1,285,295 | ) | — | ||||||||||
Deferred tax assets, net | 15,644 | 107,579 | — | 123,223 | |||||||||||
Other assets | 11,401 | 49,191 | — | 60,592 | |||||||||||
Total Assets | $ | 3,280,613 | $ | 2,344,643 | $ | (2,060,616 | ) | $ | 3,564,640 | ||||||
Liabilities | |||||||||||||||
Accounts payable | $ | 20,637 | $ | 49,615 | $ | — | $ | 70,252 | |||||||
Intercompany payables | — | 775,321 | (775,321 | ) | — | ||||||||||
Accrued expenses and other liabilities | 48,496 | 215,349 | — | 263,845 | |||||||||||
Unsecured revolving credit facility | 200,000 | — | — | 200,000 | |||||||||||
Seller financed loans | 13,726 | — | — | 13,726 | |||||||||||
Senior notes | 1,168,307 | — | — | 1,168,307 | |||||||||||
Total Liabilities | 1,451,166 | 1,040,285 | (775,321 | ) | 1,716,130 | ||||||||||
Equity | |||||||||||||||
Total stockholders’ equity | 1,829,447 | 1,285,295 | (1,285,295 | ) | 1,829,447 | ||||||||||
Noncontrolling interests | — | 19,063 | — | 19,063 | |||||||||||
Total Equity | 1,829,447 | 1,304,358 | (1,285,295 | ) | 1,848,510 | ||||||||||
Total Liabilities and Equity | $ | 3,280,613 | $ | 2,344,643 | $ | (2,060,616 | ) | $ | 3,564,640 |
Three Months Ended June 30, 2017 | |||||||||||||||
Issuer | Guarantor Subsidiaries | Consolidating Adjustments | Consolidated TRI Pointe Group, Inc. | ||||||||||||
Homebuilding: | |||||||||||||||
Home sales revenue | $ | 154,212 | $ | 414,604 | $ | — | $ | 568,816 | |||||||
Land and lot sales revenue | — | 865 | — | 865 | |||||||||||
Other operations revenue | — | 600 | — | 600 | |||||||||||
Total revenues | 154,212 | 416,069 | — | 570,281 | |||||||||||
Cost of home sales | 132,859 | 321,382 | — | 454,241 | |||||||||||
Cost of land and lot sales | — | 644 | — | 644 | |||||||||||
Other operations expense | — | 591 | — | 591 | |||||||||||
Sales and marketing | 6,966 | 25,364 | — | 32,330 | |||||||||||
General and administrative | 16,304 | 17,384 | — | 33,688 | |||||||||||
Homebuilding (loss) income from operations | (1,917 | ) | 50,704 | — | 48,787 | ||||||||||
Equity in income of unconsolidated entities | — | 1,508 | — | 1,508 | |||||||||||
Other income, net | 9 | 35 | — | 44 | |||||||||||
Homebuilding (loss) income before income taxes | (1,908 | ) | 52,247 | — | 50,339 | ||||||||||
Financial Services: | |||||||||||||||
Revenues | — | 345 | — | 345 | |||||||||||
Expenses | — | 77 | — | 77 | |||||||||||
Equity in income of unconsolidated entities | — | 1,294 | — | 1,294 | |||||||||||
Financial services income before income taxes | — | 1,562 | — | 1,562 | |||||||||||
(Loss) income before income taxes | (1,908 | ) | 53,809 | — | 51,901 | ||||||||||
Equity of net income of subsidiaries | 34,415 | — | (34,415 | ) | — | ||||||||||
Benefit (provision) for income taxes | 207 | (19,305 | ) | — | (19,098 | ) | |||||||||
Net income | 32,714 | 34,504 | (34,415 | ) | 32,803 | ||||||||||
Net income attributable to noncontrolling interests | — | (89 | ) | — | (89 | ) | |||||||||
Net income available to common stockholders | $ | 32,714 | $ | 34,415 | $ | (34,415 | ) | $ | 32,714 |
Three Months Ended June 30, 2016 | |||||||||||||||
Issuer | Guarantor Subsidiaries | Consolidating Adjustments | Consolidated TRI Pointe Group, Inc. | ||||||||||||
Homebuilding: | |||||||||||||||
Home sales revenue | $ | 152,827 | $ | 404,098 | $ | — | $ | 556,925 | |||||||
Land and lot sales revenue | — | 67,314 | — | 67,314 | |||||||||||
Other operations revenue | — | 604 | — | 604 | |||||||||||
Total revenues | 152,827 | 472,016 | — | 624,843 | |||||||||||
Cost of home sales | 128,905 | 303,833 | — | 432,738 | |||||||||||
Cost of land and lot sales | — | 14,460 | — | 14,460 | |||||||||||
Other operations expense | — | 583 | — | 583 | |||||||||||
Sales and marketing | 7,021 | 25,427 | — | 32,448 | |||||||||||
General and administrative | 14,580 | 15,904 | — | 30,484 | |||||||||||
Homebuilding income from operations | 2,321 | 111,809 | — | 114,130 | |||||||||||
Equity in income of unconsolidated entities | — | 215 | — | 215 | |||||||||||
Other income, net | 145 | 6 | — | 151 | |||||||||||
Homebuilding income before income taxes | 2,466 | 112,030 | — | 114,496 | |||||||||||
Financial Services: | |||||||||||||||
Revenues | — | 379 | — | 379 | |||||||||||
Expenses | — | 53 | — | 53 | |||||||||||
Equity in income of unconsolidated entities | — | 1,284 | — | 1,284 | |||||||||||
Financial services income before income taxes | — | 1,610 | — | 1,610 | |||||||||||
Income before income taxes | 2,466 | 113,640 | — | 116,106 | |||||||||||
Equity of net income of subsidiaries | 73,154 | — | (73,154 | ) | — | ||||||||||
Provision for income taxes | (1,694 | ) | (40,219 | ) | — | (41,913 | ) | ||||||||
Net income | 73,926 | 73,421 | (73,154 | ) | 74,193 | ||||||||||
Net income attributable to noncontrolling interests | — | (267 | ) | — | (267 | ) | |||||||||
Net income available to common stockholders | $ | 73,926 | $ | 73,154 | $ | (73,154 | ) | $ | 73,926 |
Six Months Ended June 30, 2017 | |||||||||||||||
Issuer | Guarantor Subsidiaries | Consolidating Adjustments | Consolidated TRI Pointe Group, Inc. | ||||||||||||
Cash flows from operating activities | |||||||||||||||
Net cash used in operating activities | $ | (38,171 | ) | $ | (182,529 | ) | $ | — | $ | (220,700 | ) | ||||
Cash flows from investing activities: | |||||||||||||||
Purchases of property and equipment | (1,232 | ) | (561 | ) | — | (1,793 | ) | ||||||||
Proceeds from sale of property and equipment | — | 6 | — | 6 | |||||||||||
Investments in unconsolidated entities | — | (462 | ) | — | (462 | ) | |||||||||
Intercompany | (184,084 | ) | — | 184,084 | — | ||||||||||
Net cash (used in) provided by investing activities | (185,316 | ) | (1,017 | ) | 184,084 | (2,249 | ) | ||||||||
Cash flows from financing activities: | |||||||||||||||
Borrowings from debt | 450,000 | — | — | 450,000 | |||||||||||
Repayment of debt | (213,726 | ) | — | — | (213,726 | ) | |||||||||
Debt issuance costs | (5,906 | ) | — | — | (5,906 | ) | |||||||||
Distributions to noncontrolling interests | — | (987 | ) | — | (987 | ) | |||||||||
Proceeds from issuance of common stock under share-based awards | 2,449 | — | — | 2,449 | |||||||||||
Minimum tax withholding paid on behalf of employees for restricted stock units | (2,896 | ) | — | — | (2,896 | ) | |||||||||
Share repurchases | (99,697 | ) | — | — | (99,697 | ) | |||||||||
Intercompany | — | 184,084 | (184,084 | ) | — | ||||||||||
Net cash provided by (used in) financing activities | 130,224 | 183,097 | (184,084 | ) | 129,237 | ||||||||||
Net decrease in cash and cash equivalents | (93,263 | ) | (449 | ) | — | (93,712 | ) | ||||||||
Cash and cash equivalents - beginning of period | 141,568 | 67,089 | — | 208,657 | |||||||||||
Cash and cash equivalents - end of period | $ | 48,305 | $ | 66,640 | $ | — | $ | 114,945 |
Six Months Ended June 30, 2016 | |||||||||||||||
Issuer | Guarantor Subsidiaries | Consolidating Adjustments | Consolidated TRI Pointe Group, Inc. | ||||||||||||
Cash flows from operating activities | |||||||||||||||
Net cash used in operating activities | $ | (149,745 | ) | $ | (36,451 | ) | $ | — | $ | (186,196 | ) | ||||
Cash flows from investing activities: | |||||||||||||||
Purchases of property and equipment | (372 | ) | (751 | ) | — | (1,123 | ) | ||||||||
Investments in unconsolidated entities | — | (32 | ) | — | (32 | ) | |||||||||
Distributions from unconsolidated entities | — | — | — | ||||||||||||
Intercompany | (39,469 | ) | — | 39,469 | — | ||||||||||
Net cash (used in) provided by investing activities | (39,841 | ) | (783 | ) | 39,469 | (1,155 | ) | ||||||||
Cash flows from financing activities: | |||||||||||||||
Borrowings from notes payable | 392,758 | — | — | 392,758 | |||||||||||
Repayment of notes payable | (276,426 | ) | (400 | ) | — | (276,826 | ) | ||||||||
Debt issuance costs | (5,110 | ) | — | — | (5,110 | ) | |||||||||
Net repayments of debt held by variable interest entities | — | (2,297 | ) | — | (2,297 | ) | |||||||||
Net proceeds of debt held by variable interest entities | — | — | — | — | |||||||||||
Contributions from noncontrolling interests | — | 1,810 | — | 1,810 | |||||||||||
Distributions to noncontrolling interests | — | (3,921 | ) | — | (3,921 | ) | |||||||||
Proceeds from issuance of common stock under share-based awards | 18 | — | — | 18 | |||||||||||
Excess tax benefits of share-based awards | — | — | — | — | |||||||||||
Minimum tax withholding paid on behalf of employees for restricted stock units | (1,359 | ) | — | — | (1,359 | ) | |||||||||
Share repurchases | (14,698 | ) | — | — | (14,698 | ) | |||||||||
Intercompany | — | 39,469 | (39,469 | ) | — | ||||||||||
Net cash provided by (used in) financing activities | 95,183 | 34,661 | (39,469 | ) | 90,375 | ||||||||||
Net decrease in cash and cash equivalents | (94,403 | ) | (2,573 | ) | — | (96,976 | ) | ||||||||
Cash and cash equivalents - beginning of period | 147,771 | 66,714 | — | 214,485 | |||||||||||
Cash and cash equivalents - end of period | $ | 53,368 | $ | 64,141 | $ | — | $ | 117,509 |
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