UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________________________________________________
FORM 8-K
_______________________________________________________________________________________ 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 21, 2022
_______________________________________________________________________________________

Tri Pointe Homes, Inc.
(Exact name of registrant as specified in its charter)
_______________________________________________________________________________________

Delaware	 	1-35796	 	61-1763235	
(State or other jurisdiction
of incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	
 
940 Southwood Blvd, Suite 200
Incline Village, Nevada 89451
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (775) 413-1030
Not Applicable
(Former name or former address, if changed since last report.)
_______________________________________________________________________________________ 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	
Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered	
Common Stock, par value $0.01 per share		TPH		New York Stock Exchange	

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02     Results of Operations and Financial Condition
On July 21, 2022, Tri Pointe Homes, Inc., a Delaware corporation (the “Company”), announced in a press release its financial results for the quarter ended June 30, 2022. A copy of the Company’s press release announcing these financial results is attached as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished pursuant to this Item 2.02, including the exhibits attached hereto, shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into any filings under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth in such filing. In addition, the press release furnished as an exhibit to this report includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.

Item 9.01     Financial Statements and Exhibits

(d)Exhibits
99.1          Press Release dated July 21, 2022
104           Cover Page Interactive Data File, formatted in Inline XBRL

2

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

									
 	Tri Pointe Homes, Inc.	
 	 	 	
Date: July 21, 2022	By:	/s/ Glenn J. Keeler	
 	 	Glenn J. Keeler,
Chief Financial Officer	

3

Exhibit 99.1

TRI POINTE HOMES, INC. REPORTS 2022 SECOND QUARTER RESULTS

-Diluted Earnings Per Share of $1.33-
-Homebuilding Gross Margin Percentage of 27.2%-
-Monthly Absorption Rate of 3.7-
-Backlog Dollar Value up 18% Year-Over-Year-

INCLINE VILLAGE, Nev., July 21, 2022 / Tri Pointe Homes, Inc. (the “Company”) (NYSE:TPH) today announced results for the second quarter ended June 30, 2022.
“Tri Pointe Homes delivered another quarter of strong top- and bottom-line results for the second quarter of 2022,” said Doug Bauer, Tri Pointe Homes Chief Executive Officer. “Home sales revenue eclipsed the $1 billion mark for the quarter thanks to our operating teams who once again did an outstanding job managing backlog, overcoming labor and supply chain issues and delivering homes in a timely manner. Home sales gross margin percentage was 27.2% for the quarter, a record for our company, while SG&A as a percentage of home sales revenue was 9.5%. This strong margin performance was the primary driver behind the 33% year-over-year increase in our fully diluted earnings per share to $1.33.”
Mr. Bauer continued, “We generated 1,356 net new home orders during the quarter on a sales pace of 3.7 homes per community per month. While this pace is consistent with our company’s pre-pandemic order performance for a second quarter, we experienced softening in order activity as the quarter progressed, as the combination of higher mortgage interest rates and lower consumer confidence began to impact demand. We believe there will likely be a period of adjustment as buyers adapt to this new reality, however, we believe the favorable fundamentals of demographic trends and undersupply of housing in our markets remain in place and we are confident in the long-term health of our industry.”
Mr. Bauer concluded, “Our balance sheet remained in excellent condition, as we ended the quarter with total liquidity of $938 million, including cash and cash equivalents of $270 million and $668 million available under our unsecured revolving credit facility. The company’s debt-to-capital ratio was 35.0% and our net debt-to-net capital ratio was 30.1%*. We believe this combination of low leverage and ample liquidity will allow us to make smart, rational decisions from a position of financial strength going forward and that Tri Pointe is well prepared for what comes next.”
Results and Operational Data for Second Quarter 2022 and Comparisons to Second Quarter 2021
•Net income available to common stockholders was $136.4 million, or $1.33 per diluted share, compared to $117.9 million, or $1.00 per diluted share
•Home sales revenue of $1.0 billion for both periods
◦New home deliveries of 1,485 homes compared to 1,545 homes, a decrease of 4%
◦Average sales price of homes delivered of $677,000 compared to $653,000, an increase of 4%
•Homebuilding gross margin percentage of 27.2% compared to 24.6%, an increase of 260 basis points
◦Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 29.8%*
•SG&A expense as a percentage of homes sales revenue of 9.5% compared to 9.6%, a decrease of 10 basis points
•Net new home orders of 1,356 compared to 1,622, a decrease of 16%
•Active selling communities averaged 121.8 compared to 114.5, an increase of 6%
Page 1

◦Net new home orders per average selling community were 11.1 orders (3.7 monthly) compared to 14.2 orders (4.7 monthly)
◦Cancellation rate of 16% compared to 7%
•Backlog units at quarter end of 3,826 homes compared to 3,902, a decrease of 2%
◦Dollar value of backlog at quarter end of $3.0 billion compared to $2.5 billion, an increase of 18%
◦Average sales price of homes in backlog at quarter end of $779,000 compared to $647,000, an increase of 20%
•Ratios of debt-to-capital and net debt-to-net capital of 35.0% and 30.1%*, respectively, as of June 30, 2022
•Repurchased 3,152,234 shares of common stock at a weighted average price per share of $19.92 for an aggregate dollar amount of $62.8 million in the three months ended June 30, 2022
•Increased the maximum amount of our revolving credit facility from $650 million to $750 million and extended the maturity date of our revolving credit facility and term loan facility to June 2027
•Ended the second quarter of 2022 with total liquidity of $937.7 million, including cash and cash equivalents of $270.1 million and $667.5 million of availability under our revolving credit facility

	
*	See “Reconciliation of Non-GAAP Financial Measures”	
“Tri Pointe ended the second quarter with a record sold backlog of nearly $3 billion, putting us in an excellent position to continue delivering strong top- and bottom-line results for the remainder of the year,” said Tri Pointe Homes President and Chief Operating Officer Tom Mitchell. “We believe that our approach of acquiring land in prime locations close to employment and transportation centers and other lifestyle amenities that homebuyers value, combined with our innovative, premium homes, gives us a distinct selling advantage in a challenging market. We also have strong leadership teams at both the local and national levels who have successfully navigated prior housing cycles and are skilled at operating through such times. Given these positives, we remain as confident as ever in the long-term outlook for Tri Pointe Homes.”
Outlook
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%.
Due to quickly changing market conditions and significant uncertainty related to the broader economy, the Company is providing guidance for the third quarter and is not providing updated guidance for the full year at this time.
Earnings Conference Call
The Company will host a conference call via live webcast for investors and other interested parties beginning at 10:00 a.m. Eastern Time on Thursday, July 21, 2022.  The call will be hosted by Doug Bauer, Chief Executive Officer, Tom Mitchell, President and Chief Operating Officer, and Glenn Keeler, Chief Financial Officer. Interested parties can listen to the call live and view the related slides on the Internet under the Events & Presentations heading in the Investors section of the Company’s website at www.TriPointeHomes.com. Listeners should go to the website at least fifteen minutes prior to the call to download and install any necessary audio software. The call can also be accessed toll free at (877) 407-3982, or (201) 493-6780 for international participants. Participants should ask for the Tri Pointe Homes Second Quarter 2022 Earnings Conference Call. Those dialing in should do so at least ten minutes prior to the start of the call. A replay of the call will be available for two weeks following the call toll free at (844) 512-2921, or (412) 317-6671 for international participants, using the reference number 13730783. An archive of the webcast will also be available on the Company’s website for a limited time.
Page 2

About Tri Pointe Homes, Inc.
One of the largest homebuilders in the U.S., Tri Pointe Homes, Inc. (NYSE: TPH) is a publicly traded company and a recognized leader in customer experience, innovative design, and environmentally responsible business practices. The company builds premium homes and communities in 10 states, with deep ties to the communities it serves—some for as long as a century. Tri Pointe Homes combines the financial resources, technology platforms and proven leadership of a national organization with the regional insights, longstanding community connections and agility of empowered local teams. Tri Pointe has won multiple Builder of the Year awards, most recently in 2019, and made Fortune magazine’s 2017 100 Fastest-Growing Companies list. Named one of the Best Places to Work by the Orange County Business Journal for four consecutive years, Tri Pointe Homes was also named a Great Place to Work-CertifiedTM company in both 2021 and 2022. For more information, please visit TriPointeHomes.com.
Forward-Looking Statements
Various statements contained in this press release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include, but are not limited to, statements regarding our strategy, projections and estimates concerning the timing and success of specific projects and our future production, land and lot sales, operational and financial results, including our estimates for growth, financial condition, sales prices, prospects, and capital spending. Forward-looking statements that are included in this press release are generally accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “future,” “goal,” “guidance,” “intend,” “likely,” “may,” “might,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “strategy,” “target,” “will,” “would,” or other words that convey future events or outcomes. The forward-looking statements in this press release speak only as of the date of this press release, and we disclaim any obligation to update these statements unless required by law, and we caution you not to rely on them unduly. These forward-looking statements are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. The following factors, among others, may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements: the effects of the ongoing COVID-19 pandemic, which are highly uncertain and subject to rapid change, cannot be predicted and will depend upon future developments, including the emergence and spread of new strains or variants of COVID-19, the severity and the duration of the outbreak, the duration of existing and future social distancing and shelter-in-place orders, further mitigation strategies taken by applicable government authorities, the availability and acceptance of effective vaccines, adequate testing and treatments and the prevalence of widespread immunity to COVID-19; the impacts on our supply chain, the health of our employees, service providers and trade partners, and the reactions of U.S. and global markets and their effects on consumer confidence and spending; the effects of general economic conditions, including employment rates, housing starts, interest rate levels, availability of financing for home mortgages and strength of the U.S. dollar; market demand for our products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions; the availability of desirable and reasonably priced land and our ability to control, purchase, hold and develop such parcels; access to adequate capital on acceptable terms; geographic concentration of our operations, particularly within California; levels of competition; the successful execution of our internal performance plans, including restructuring and cost reduction initiatives; the prices and availability of supply chain inputs, including raw materials and labor; oil and other energy prices; the effects of U.S. trade policies, including the imposition of tariffs and duties on homebuilding products and retaliatory measures taken by other countries; the effects of weather, including the occurrence of drought conditions in California; the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other natural disasters, and the risk of delays, reduced consumer demand, and shortages and price increases in labor or materials associated with such natural disasters; the risk of loss from acts of war, terrorism, civil unrest or outbreaks of contagious diseases, such as COVID-19; transportation costs; federal and state tax policies; the effects of land use, environment and other governmental laws and regulations; legal proceedings or disputes and the adequacy of reserves; risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, synergies, indebtedness, financial condition, losses and future prospects; changes in accounting principles; risks
Page 3

related to unauthorized access to our computer systems, theft of our homebuyers’ confidential information or other forms of cyber-attack; and additional factors discussed under the sections captioned “Risk Factors” included in our annual and quarterly reports filed with the Securities and Exchange Commission. The foregoing list is not exhaustive. New risk factors may emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risk factors on our business.

Investor Relations Contact:
Drew Mackintosh, Mackintosh Investor Relations
InvestorRelations@TriPointeHomes.com, 949-478-8696
Media Contact:
Carol Ruiz, cruiz@newgroundco.com, 310-437-0045

Page 4

KEY OPERATIONS AND FINANCIAL DATA
(dollars in thousands)
(unaudited)

	Three Months Ended June 30,		Six Months Ended June 30,	
	2022		2021		Change		% Change		2022		2021		Change		% Change	
Operating Data:	(unaudited)	
Home sales revenue	$	1,004,644 			$	1,009,307 			$	(4,663)			0 	%		$	1,729,895 			$	1,725,982 			$	3,913 			0 	%	
Homebuilding gross margin	$	273,292 			$	248,092 			$	25,200 			10 	%		$	467,883 			$	419,411 			$	48,472 			12 	%	
Homebuilding gross margin %	27.2 	%		24.6 	%		2.6 	%				27.0 	%		24.3 	%		2.7 	%			
Adjusted homebuilding gross margin %*	29.8 	%		27.7 	%		2.1 	%				29.6 	%		27.3 	%		2.3 	%			

	
SG&A expense	$	95,352 			$	96,752 			$	(1,400)			(1)	%		$	176,047 			$	178,561 			$	(2,514)			(1)	%	
SG&A expense as a % of home sales
   revenue	9.5 	%		9.6 	%		(0.1)	%				10.2 	%		10.3 	%		(0.1)	%			
Net income available to common stockholders	$	136,383 			$	117,869 			$	18,514 			16 	%		$	223,861 			$	188,671 			$	35,190 			19 	%	
	
Adjusted EBITDA*	$	220,905 			$	201,986 			$	18,919 			9 	%		$	366,996 			$	328,066 			$	38,930 			12 	%	
Interest incurred	$	28,789 			$	22,558 			$	6,231 			28 	%		$	57,342 			$	43,737 			$	13,605 			31 	%	
Interest in cost of home sales	$	24,963 			$	30,851 			$	(5,888)			(19)	%		$	42,028 			$	51,529 			$	(9,501)			(18)	%	
																
Other Data:																
Net new home orders	1,356 			1,622 			(266)			(16)	%		3,252 			3,609 			(357)			(10)	%	
New homes delivered	1,485 			1,545 			(60)			(4)	%		2,584 			2,671 			(87)			(3)	%	
Average sales price of homes delivered	$	677 			$	653 			$	24 			4 	%		$	669 			$	646 			$	23 			4 	%	
Cancellation rate	16 	%		7 	%		9 	%				11 	%		7 	%		4 	%			
Average selling communities	121.8 			114.5 			7.3 			6 	%		116.7 			113.4 			3.3 			3 	%	
Selling communities at end of period	123 			109 			14 			13 	%									
Backlog (estimated dollar value)	$	2,981,255 			$	2,524,442 			$	456,813 			18 	%									
Backlog (homes)	3,826 			3,902 			(76)			(2)	%									
Average sales price in backlog	$	779 			$	647 			$	132 			20 	%									
																
	June 30,		December 31,													
	2022		2021		Change		% Change									
Balance Sheet Data:	(unaudited)															
Cash and cash equivalents	$	270,124 			$	681,528 			$	(411,404)			(60)	%									
Real estate inventories	$	3,490,321 			$	3,054,743 			$	435,578 			14 	%									
Lots owned or controlled	39,082 			41,675 			(2,593)			(6)	%									
Homes under construction (1)	4,707 			3,632 			1,075 			30 	%									
Homes completed, unsold	42 			27 			15 			56 	%									
Debt	$	1,338,895 			$	1,337,723 			$	1,172 			0 	%									
Stockholders’ equity	$	2,487,566 			$	2,447,621 			$	39,945 			2 	%									
Book capitalization	$	3,826,461 			$	3,785,344 			$	41,117 			1 	%									
Ratio of debt-to-capital	35.0 	%		35.3 	%		(0.3)	%											
Ratio of net debt-to-net capital*	30.1 	%		21.1 	%		9.0 	%											
__________
(1)     Homes under construction included 88 and 85 models at June 30, 2022 and December 31, 2021, respectively.
*    See “Reconciliation of Non-GAAP Financial Measures”
Page 5

CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)

												
	June 30,		December 31,	
	2022		2021	
Assets	(unaudited)			
Cash and cash equivalents	$	270,124 			$	681,528 		
Receivables	145,430 			116,996 		
Real estate inventories	3,490,321 			3,054,743 		
Investments in unconsolidated entities	131,399 			118,095 		
Goodwill and other intangible assets, net	156,603 			156,603 		
Deferred tax assets, net	57,095 			57,096 		
Other assets	163,686 			151,162 		
Total assets	$	4,414,658 			$	4,336,223 		
				
Liabilities				
Accounts payable	$	112,942 			$	84,854 		
Accrued expenses and other liabilities	474,202 			466,013 		
Loans payable	250,000 			250,504 		
Senior notes	1,088,895 			1,087,219 		
Total liabilities	1,926,039 			1,888,590 		
				
Commitments and contingencies				
				
Equity				
Stockholders’ equity:				
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively	— 			— 		
Common stock, $0.01 par value, 500,000,000 shares authorized; 101,860,993 and 109,644,474 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively	1,019 			1,096 		
Additional paid-in capital	— 			91,077 		
Retained earnings	2,486,547 			2,355,448 		
Total stockholders’ equity	2,487,566 			2,447,621 		
Noncontrolling interests	1,053 			12 		
Total equity	2,488,619 			2,447,633 		
Total liabilities and equity	$	4,414,658 			$	4,336,223 		

 
Page 6

CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)

																								
 	Three Months Ended June 30,		Six Months Ended June 30,	
 	2022		2021		2022		2021	
Homebuilding:	 		 					
Home sales revenue	$	1,004,644 			$	1,009,307 			$	1,729,895 			$	1,725,982 		
Land and lot sales revenue	114 			5,416 			1,711 			6,939 		
Other operations revenue	703 			660 			1,347 			1,323 		
Total revenues	1,005,461 			1,015,383 			1,732,953 			1,734,244 		
Cost of home sales	731,352 			761,215 			1,262,012 			1,306,571 		
Cost of land and lot sales	344 			4,874 			819 			5,027 		
Other operations expense	704 			686 			1,350 			1,310 		
Sales and marketing	38,523 			45,489 			70,762 			85,949 		
General and administrative	56,829 			51,263 			105,285 			92,612 		
	
Homebuilding income from operations	177,709 			151,856 			292,725 			242,775 		
Equity in income (loss) of unconsolidated entities	143 			(16)			88 			(29)		
Other income, net	116 			149 			389 			257 		
Homebuilding income before income taxes	177,968 			151,989 			293,202 			243,003 		
Financial Services:								
Revenues	12,228 			2,681 			20,980 			4,786 		
Expenses	6,322 			1,485 			11,630 			2,892 		
Equity in income of unconsolidated entities	— 			3,949 			46 			6,640 		
Financial services income before income taxes	5,906 			5,145 			9,396 			8,534 		
Income before income taxes	183,874 			157,134 			302,598 			251,537 		
Provision for income taxes	(45,936)			(39,265)			(76,161)			(62,866)		
Net income	137,938 			117,869 			226,437 			188,671 		
Net income attributable to noncontrolling interests	(1,555)			— 			(2,576)			— 		
Net income available to common stockholders	$	136,383 			$	117,869 			$	223,861 			$	188,671 		
Earnings per share			 				 	
Basic	$	1.33 			$	1.01 			$	2.14 			$	1.60 		
Diluted	$	1.33 			$	1.00 			$	2.12 			$	1.59 		
Weighted average shares outstanding			 					
Basic	102,164,377 			116,824,108 			104,731,388 			118,082,691 		
Diluted	102,787,919 			117,770,084 			105,478,446 			118,921,340 		

Page 7

MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY
(dollars in thousands)
(unaudited)

																																																
	Three Months Ended June 30,		Six Months Ended June 30,	
	2022		2021		2022		2021	
	New
Homes
Delivered		Average
Sales
Price		New
Homes
Delivered		Average
Sales
Price		New
Homes
Delivered		Average
Sales
Price		New
Homes
Delivered		Average
Sales
Price	
Arizona	127 			$	732 			223 			$	652 			197 			$	733 			383 			$	658 		
California	579 			698 			698 			705 			1,093 			690 			1,155 			692 		
Nevada	157 			724 			127 			589 			241 			711 			201 			602 		
Washington	54 			1,092 			69 			968 			126 			1,023 			147 			985 		
West total	917 			731 			1,117 			697 			1,657 			723 			1,886 			698 		
Colorado	76 			682 			59 			568 			119 			662 			99 			582 		
Texas	318 			511 			233 			498 			538 			507 			447 			477 		
Central total	394 			544 			292 			512 			657 			535 			546 			496 		

Carolinas(1)	44 			462 			21 			407 			72 			458 			39 			381 		
Washington D.C. Area(2)	130 			770 			115 			628 			198 			744 			200 			618 		
East total	174 			692 			136 			594 			270 			668 			239 			579 		
Total	1,485 			$	677 			1,545 			$	653 			2,584 			$	669 			2,671 			$	646 		
																
	Three Months Ended June 30,		Six Months Ended June 30,	
	2022		2021		2022		2021	
	Net New
Home
Orders		Average
Selling
Communities		Net New
Home
Orders		Average
Selling
Communities		Net New
Home
Orders		Average
Selling
Communities		Net New
Home
Orders		Average
Selling
Communities	
Arizona	195 			14.2 			233 			15.2 			410 			13.6 			494 			15.1 		
California	601 			49.2 			630 			39.0 			1,302 			44.7 			1,320 			38.6 		
Nevada	116 			7.3 			180 			11.3 			261 			8.0 			435 			11.6 		
Washington	21 			1.8 			90 			6.2 			69 			2.4 			161 			5.6 		
West total	933 			72.5 			1,133 			71.7 			2,042 			68.7 			2,410 			70.9 		
Colorado	34 			8.0 			58 			5.8 			165 			8.0 			163 			5.3 		
Texas	153 			22.0 			278 			22.0 			568 			22.1 			707 			23.0 		
Central total	187 			30.0 			336 			27.8 			733 			30.1 			870 			28.3 		

Carolinas(1)	170 			11.5 			40 			3.8 			296 			10.0 			88 			3.1 		
Washington D.C. Area(2)	66 			7.8 			113 			11.2 			181 			7.9 			241 			11.1 		
East total	236 			19.3 			153 			15.0 			477 			17.9 			329 			14.2 		
Total	1,356 			121.8 			1,622 			114.5 			3,252 			116.7 			3,609 			113.4 		

	

	
(1)     Carolinas comprises North Carolina and South Carolina.
(2)     Washington D.C. Area comprises Maryland, Virginia and the District of Columbia.

Page 8

MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY, continued
(dollars in thousands)
(unaudited)

																																				
	As of June 30, 2022		As of June 30, 2021	
	Backlog
Units		Backlog
Dollar
Value		Average
Sales
Price		Backlog
Units		Backlog
Dollar
Value		Average
Sales
Price	
Arizona	733 			$	586,871 			$	801 			590 			$	424,048 			$	719 		
California	1,245 			1,128,517 			906 			1,423 			921,602 			648 		
Nevada	346 			279,679 			808 			370 			245,895 			665 		
Washington	72 			60,188 			836 			153 			165,314 			1,080 		
West total	2,396 			2,055,255 			858 			2,536 			1,756,859 			693 		
Colorado	230 			178,845 			778 			190 			126,913 			668 		
Texas	666 			408,415 			613 			758 			372,381 			491 		
Central total	896 			587,260 			655 			948 			499,294 			527 		

Carolinas(1)	345 			162,317 			470 			64 			26,171 			409 		
Washington D.C. Area(2)	189 			176,423 			933 			354 			242,118 			684 		
East total	534 			338,740 			634 			418 			268,289 			642 		
Total	3,826 			$	2,981,255 			$	779 			3,902 			$	2,524,442 			$	647 		
												
	June 30,		December 31,									
	2022		2021									
Lots Owned or Controlled:												
Arizona	3,522 			4,607 										
California	13,588 			15,091 										
Nevada	2,064 			2,161 										
Washington	937 			1,010 										
West total	20,111 			22,869 										
Colorado	2,045 			1,683 										
Texas	11,321 			12,297 										
Central total	13,366 			13,980 										

	
Carolinas(1)	4,075 			3,458 										
Washington D.C. Area(2)	1,530 			1,368 										
East total	5,605 			4,826 										
Total	39,082 			41,675 										
												
	June 30,		December 31,									
	2022		2021									
Lots by Ownership Type:												
Lots owned	21,579 			22,136 										
Lots controlled (3)	17,503 			19,539 										
Total	39,082 			41,675 										

(1)     Carolinas comprises North Carolina and South Carolina.
(2)     Washington D.C. Area comprises Maryland, Virginia and the District of Columbia.
(3)     As of June 30, 2022 and December 31, 2021, lots controlled included lots that were under land option contracts or purchase contracts. As of June 30, 2022 and December 31, 2021, lots controlled for Central include 3,447 and 2,950 lots, respectively, and lots controlled for East include 157 and 179 lots, respectively, which represent our expected share of lots owned by our investments in unconsolidated land development joint ventures.
Page 9

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(unaudited)
In this press release, we utilize certain financial measures that are non-GAAP financial measures as defined by the Securities and Exchange Commission. We present these measures because we believe they and similar measures are useful to management and investors in evaluating the Company’s operating performance and financing structure. We also believe these measures facilitate the comparison of our operating performance and financing structure with other companies in our industry. Because these measures are not calculated in accordance with Generally Accepted Accounting Principles (“GAAP”), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
The following tables reconcile homebuilding gross margin percentage, as reported and prepared in accordance with GAAP, to the non-GAAP measure adjusted homebuilding gross margin percentage. We believe this information is meaningful as it isolates the impact that leverage has on homebuilding gross margin and permits investors to make better comparisons with our competitors, who adjust gross margins in a similar fashion.

																								
	Three Months Ended June 30,	
	2022		%		2021		%	
	(dollars in thousands)	
Home sales revenue	$	1,004,644 			100.0 	%		$	1,009,307 			100.0 	%	
Cost of home sales	731,352 			72.8 	%		761,215 			75.4 	%	
Homebuilding gross margin	273,292 			27.2 	%		248,092 			24.6 	%	
Add:  interest in cost of home sales	24,963 			2.5 	%		30,851 			3.1 	%	
Add:  impairments and lot option abandonments	972 			0.1 	%		232 			0.0 	%	
Adjusted homebuilding gross margin	$	299,227 			29.8 	%		$	279,175 			27.7 	%	
Homebuilding gross margin percentage	27.2 	%		 		24.6 	%		 	
Adjusted homebuilding gross margin percentage	29.8 	%		 		27.7 	%		 	

																								
	Six Months Ended June 30,	
	2022		%		2021		%	
Home sales revenue	$	1,729,895 			100.0 	%		$	1,725,982 			100.0 	%	
Cost of home sales	1,262,012 			73.0 	%		1,306,571 			75.7 	%	
Homebuilding gross margin	467,883 			27.0 	%		419,411 			24.3 	%	
Add:  interest in cost of home sales	42,028 			2.4 	%		51,529 			3.0 	%	
Add:  impairments and lot option abandonments	1,461 			0.1 	%		445 			0.0 	%	
Adjusted homebuilding gross margin	$	511,372 			29.6 	%		$	471,385 			27.3 	%	
Homebuilding gross margin percentage	27.0 	%				24.3 	%			
Adjusted homebuilding gross margin percentage	29.6 	%				27.3 	%			

Page 10

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
(unaudited)
 
The following table reconciles the Company’s ratio of debt-to-capital to the non-GAAP ratio of net debt-to-net capital. We believe that the ratio of net debt-to-net capital is a relevant financial measure for management and investors to understand the leverage employed in our operations and as an indicator of the Company’s ability to obtain financing.

												
	June 30, 2022		December 31, 2021	
Loans payable	$	250,000 			$	250,504 		
Senior notes	1,088,895 			1,087,219 		
Total debt	1,338,895 			1,337,723 		
Stockholders’ equity	2,487,566 			2,447,621 		
Total capital	$	3,826,461 			$	3,785,344 		
Ratio of debt-to-capital(1)	35.0 	%		35.3 	%	
				
Total debt	$	1,338,895 			$	1,337,723 		
Less: Cash and cash equivalents	(270,124)			(681,528)		
Net debt	1,068,771 			656,195 		
Stockholders’ equity	2,487,566 			2,447,621 		
Net capital	$	3,556,337 			$	3,103,816 		
Ratio of net debt-to-net capital(2)	30.1 	%		21.1 	%	
__________
(1)    The ratio of debt-to-capital is computed as the quotient obtained by dividing total debt by the sum of total debt plus stockholders’ equity.
(2)    The ratio of net debt-to-net capital is computed as the quotient obtained by dividing net debt (which is total debt less cash and cash equivalents) by the sum of net debt plus stockholders’ equity.

Page 11

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
(unaudited)
 
The following table calculates the non-GAAP financial measures of EBITDA and Adjusted EBITDA and reconciles those amounts to net income available to common stockholders, as reported and prepared in accordance with GAAP. EBITDA means net income available to common stockholders before (a) interest expense, (b) expensing of previously capitalized interest included in costs of home sales, (c) income taxes and (d) depreciation and amortization. Adjusted EBITDA means EBITDA before (e) amortization of stock-based compensation and (f) impairments and lot option abandonments. Other companies may calculate EBITDA and Adjusted EBITDA (or similarly titled measures) differently. We believe EBITDA and Adjusted EBITDA are useful measures of the Company’s ability to service debt and obtain financing.
																								
	Three Months Ended June 30,		Six Months Ended June 30,	
	2022		2021		2022		2021	
	(in thousands)	
Net income available to common stockholders	$	136,383 			$	117,869 			$	223,861 			$	188,671 		
Interest expense:								
Interest incurred	28,789 			22,558 			57,342 			43,737 		
Interest capitalized	(28,789)			(22,558)			(57,342)			(43,737)		
Amortization of interest in cost of sales	24,963 			31,124 			42,028 			51,802 		
Provision for income taxes	45,936 			39,265 			76,161 			62,866 		
Depreciation and amortization	6,741 			8,990 			12,026 			16,120 		
EBITDA	214,023 			197,248 			354,076 			319,459 		
Amortization of stock-based compensation	5,751 			4,506 			11,023 			8,162 		
Impairments and lot option abandonments	1,131 			232 			1,897 			445 		

Adjusted EBITDA	$	220,905 			$	201,986 			$	366,996 			$	328,066 		
 
Page 12