-Diluted Earnings Per Share of
-Homebuilding Gross Margin Percentage of 27.2%-
-Monthly Absorption Rate of 3.7-
-Backlog Dollar Value up 18% Year-Over-Year-
“Tri Pointe Homes delivered another quarter of strong top- and bottom-line results for the second quarter of 2022,” said
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%
- 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%
- Dollar value of backlog at quarter end of
- 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 endedJune 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 toJune 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
Outlook
For the third quarter, the Company anticipates delivering between 1,300 and 1,500 homes at an average sales price between
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
About
One of the largest homebuilders in the
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
Investor Relations Contact:
InvestorRelations@TriPointeHomes.com, 949-478-8696
Media Contact:
KEY OPERATIONS AND FINANCIAL DATA
(dollars in thousands)
(unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
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 | % | |||||||||||||||||||||
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
* See “Reconciliation of Non-GAAP Financial Measures”
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
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 | |||
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, | — | — | |||
Common stock, | 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 |
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||
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 |
MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY
(dollars in thousands)
(unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||||||
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 | ||||||||||||
127 | $ | 732 | 223 | $ | 652 | 197 | $ | 733 | 383 | $ | 658 | ||||||||
579 | 698 | 698 | 705 | 1,093 | 690 | 1,155 | 692 | ||||||||||||
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 | |||||||||||
76 | 682 | 59 | 568 | 119 | 662 | 99 | 582 | ||||||||||||
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 | |||||||||||
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 | Six Months Ended | ||||||||||||||||||
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 | ||||||||||||
195 | 14.2 | 233 | 15.2 | 410 | 13.6 | 494 | 15.1 | ||||||||||||
601 | 49.2 | 630 | 39.0 | 1,302 | 44.7 | 1,320 | 38.6 | ||||||||||||
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 | |||||||||||
34 | 8.0 | 58 | 5.8 | 165 | 8.0 | 163 | 5.3 | ||||||||||||
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 | |||||||||||
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
(2) Washington
MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY, continued
(dollars in thousands)
(unaudited)
As of | As of | ||||||||||||||
Backlog Units | Backlog Dollar Value | Average Sales Price | Backlog Units | Backlog Dollar Value | Average Sales Price | ||||||||||
733 | $ | 586,871 | $ | 801 | 590 | $ | 424,048 | $ | 719 | ||||||
1,245 | 1,128,517 | 906 | 1,423 | 921,602 | 648 | ||||||||||
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 | |||||||||
230 | 178,845 | 778 | 190 | 126,913 | 668 | ||||||||||
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 | |||||||||
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 | |||||
2022 | 2021 | ||||||||||||||
Lots Owned or Controlled: | |||||||||||||||
3,522 | 4,607 | ||||||||||||||
13,588 | 15,091 | ||||||||||||||
2,064 | 2,161 | ||||||||||||||
Washington | 937 | 1,010 | |||||||||||||
West total | 20,111 | 22,869 | |||||||||||||
2,045 | 1,683 | ||||||||||||||
11,321 | 12,297 | ||||||||||||||
Central total | 13,366 | 13,980 | |||||||||||||
Carolinas(1) | 4,075 | 3,458 | |||||||||||||
1,530 | 1,368 | ||||||||||||||
East total | 5,605 | 4,826 | |||||||||||||
Total | 39,082 | 41,675 | |||||||||||||
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
(2) Washington
(3) As of
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
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 | |||||||||||||
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 | |||||||||||||
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 | % |
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.
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.
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 | Six Months Ended | ||||||||||||||
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 |
Source:
2022 GlobeNewswire, Inc., source