• Tri Pointe Homes, Inc. Reports 2024 Third Quarter Results

    Source: Nasdaq GlobeNewswire / 24 Oct 2024 05:00:32   America/Chicago

    -New Home Deliveries of 1,619-
    -Home Sales Revenue of $1.1 Billion-
    -Homebuilding Gross Margin Percentage of 23.3%-
    -Diluted Earnings Per Share of $1.18-
    -Homebuilding Debt-to-Capital Ratio Reduced to Record Low of 22.1%-

    INCLINE VILLAGE, Nev., Oct. 24, 2024 (GLOBE NEWSWIRE) -- Tri Pointe Homes, Inc. (the “Company”) (NYSE:TPH) today announced results for the third quarter ended September 30, 2024.

    “Tri Pointe Homes once again delivered excellent financial results for the third quarter,” said Doug Bauer, Tri Pointe Homes Chief Executive Officer. “We achieved a 32% increase in deliveries to 1,619 homes, a 2% rise in the average sales price, and a 35% growth in homes sales revenue to $1.1 billion. We are also pleased to report that the improvements in both volume and pricing were well-balanced across our markets with each reporting segment achieving gains in deliveries and revenues. In addition to higher homes sales revenue, we expanded gross margins by 100 basis points to 23.3% and achieved diluted earnings per share of $1.18, representing a 55% increase compared to the previous year.”

    Mr. Bauer continued, “Building on a strong third quarter, we remain focused on scaling efficiency across existing markets, while continuing to drive operational improvements that bolster long-term profitability and returns. Additionally, our recent strategic expansion into three new markets positions us for further geographic diversification and top-line growth, allowing us to capture emerging opportunities as the housing industry remains well-positioned. We ended the quarter with a net homebuilding debt-to-net capital ratio of 7.0%*, further strengthening our balance sheet. This solid foundation gives us flexibility to continue pursuing growth initiatives and delivering value to our stockholders.”

    “Tri Pointe Homes is well-positioned to capitalize on the strong fundamentals driving the homebuilding industry,” said Tom Mitchell, Tri Pointe Homes President and Chief Operating Officer. “With a solid financial foundation, the right strategic plan in place, and highly skilled teams across the country, we remain focused on optimizing asset turns and generating strong cash flows, which will fuel further growth. The housing market fundamentals, including favorable demographics and a persistent supply-demand imbalance, create a supportive environment for sustained success. As we execute our strategy, we are confident in our ability to deliver value while maintaining our focus on operational and financial discipline.”

    Results and Operational Data for Third Quarter 2024 and Comparisons to Third Quarter 2023

    • Net income available to common stockholders was $111.8 million, or $1.18 per diluted share, compared to $75.4 million, or $0.76 per diluted share
    • Home sales revenue of $1.1 billion compared to $825.3 million, an increase of 35%
      • New home deliveries of 1,619 homes compared to 1,223 homes, an increase of 32%
      • Average sales price of homes delivered of $688,000 compared to $675,000, an increase of 2%
    • Homebuilding gross margin percentage of 23.3% compared to 22.3%, an increase of 100 basis points
      • Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 26.8%*
    • SG&A expense as a percentage of home sales revenue of 10.8% compared to 12.3%, a decrease of 150 basis points
    • Net new home orders of 1,252 compared to 1,513, a decrease of 17%
    • Active selling communities averaged 150.0 compared to 154.8, a decrease of 3%
      • Net new home orders per average selling community were 8.3 orders (2.8 monthly) compared to 9.8 orders (3.3 monthly)
      • Cancellation rate steady at 10% in both periods
    • Backlog units at quarter end of 2,325 homes compared to 3,055, a decrease of 24%
      • Dollar value of backlog at quarter end of $1.7 billion compared to $2.1 billion, a decrease of 18%
      • Average sales price of homes in backlog at quarter end of $745,000 compared to $693,000, an increase of 8%
    • Ratios of homebuilding debt-to-capital and net homebuilding debt-to-net capital of 22.1% and 7.0%*, respectively, as of September 30, 2024
    • Repurchased 272,777 shares of common stock at a weighted average price per share of $36.24 for an aggregate dollar amount of $9.9 million in the three months ended September 30, 2024
    • Ended the third quarter of 2024 with total liquidity of $1.4 billion, including cash and cash equivalents of $676.0 million and $698.1 million of availability under our revolving credit facility
    *See “Reconciliation of Non-GAAP Financial Measures”
      

    Outlook

    For the fourth quarter, the Company anticipates delivering between 1,600 and 1,800 homes at an average sales price between $700,000 and $710,000. The Company expects homebuilding gross margin percentage to be in the range of 23.0% to 23.5% for the fourth quarter and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 10.5% to 10.9%. Finally, the Company expects its effective tax rate for the fourth quarter to be approximately 26.0%.

    For the full year, the Company anticipates delivering between 6,300 and 6,500 homes at an average sales price of approximately $680,000. The Company expects homebuilding gross margin percentage to be approximately 23.3% for the full year and anticipates its SG&A expense as a percentage of home sales revenue will be approximately 10.9%. Finally, the Company expects its effective tax rate for the full year to be approximately 25.5%.

    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, October 24, 2024. The call will be hosted by Doug Bauer, Chief Executive Officer, Tom Mitchell, President and Chief Operating Officer, Glenn Keeler, Chief Financial Officer, and Linda Mamet, Executive Vice President and Chief Marketing 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 Third Quarter 2024 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 13749196. An archive of the webcast will also be available on the Company’s website for a limited time.

    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 operating in 12 states and the District of Columbia, and is a recognized leader in customer experience, innovative design, and environmentally responsible business practices. The company builds premium homes and communities 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, was named to the 2024 Fortune World’s Most Admired Companies™ list, is one of the 2023 Fortune 100 Best Companies to Work For® and was designated as one of the 2023 PEOPLE Companies That Care®. The company was also named as a Great Place To Work-Certified™ company for three years in a row (2021 through 2023), and was named on several Great Place To Work® Best Workplaces lists in 2022 and 2023. 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 general economic conditions, including employment rates, housing starts, interest rate levels, home affordability, inflation, consumer sentiment, 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; 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, labor and home components; 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 parts of the western United States; 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 public health emergencies, including outbreaks of contagious disease, 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 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:
    InvestorRelations@TriPointeHomes.com, 949-478-8696

    Media Contact:

    Carol Ruiz, cruiz@newgroundco.com, 310-437-0045  


    KEY OPERATIONS AND FINANCIAL DATA
    (dollars in thousands)
    (unaudited)
        
     Three Months Ended September 30, Nine Months Ended September 30,
     2024 2023 Change % Change 2024 2023 Change % Change
    Operating Data:(unaudited)
    Home sales revenue$1,113,681  $825,295  $288,386  35% $3,165,042  $2,412,777  $752,265  31%
    Homebuilding gross margin$259,182  $184,221  $74,961  41% $737,558  $531,586  $205,972  39%
    Homebuilding gross margin % 23.3%  22.3%  1.0%    23.3%  22.0%  1.3%  
    Adjusted homebuilding gross margin %* 26.8%  25.6%  1.2%    26.8%  25.6%  1.2%  
    SG&A expense$120,478  $101,233  $19,245  19% $346,581  $286,926  $59,655  21%
    SG&A expense as a % of home sales revenue 10.8%  12.3% (1.5) %    11.0%  11.9% (0.9) %  
    Net income available to common stockholders$111,759  $75,402  $36,357  48% $328,816  $210,868  $117,948  56%
    Adjusted EBITDA*$208,639  $139,678  $68,961  49% $600,530  $403,581  $196,949  49%
    Interest incurred$25,253  $36,919  $(11,666) (32)% $91,787  $111,792  $(20,005) (18)    %
    Interest in cost of home sales$37,687  $27,035  $10,652  39% $107,330  $72,627  $34,703  48%
                    
    Other Data:               
    Net new home orders 1,252   1,513   (261) (17) %  4,717   5,044   (327) (6)   %
    New homes delivered 1,619   1,223   396  32%  4,712   3,461   1,251  36%
    Average sales price of homes delivered$688  $675  $13  2% $672  $697  $(25) (4)   %
    Cancellation rate 10%  10%  0%    8%  9% (1) %  
    Average selling communities 150.0   154.8   (4.8) (3)%  151.6   144.3   7.3  5%
    Selling communities at end of period 148   163   (15) (9)%        
    Backlog (estimated dollar value)$1,731,590  $2,117,319  $(385,729) (18)%        
    Backlog (homes) 2,325   3,055   (730) (24)%        
    Average sales price in backlog$745  $693  $52  8%        
                    
     September 30, December 31,            
     2024 2023 Change % Change        
    Balance Sheet Data:(unaudited)              
    Cash and cash equivalents$675,957  $868,953  $(192,996) (22) %        
    Real estate inventories$3,412,633  $3,337,483  $75,150  2%        
    Lots owned or controlled 33,488   31,960   1,528  5%        
    Homes under construction (1) 3,009   3,088   (79) (3) %        
    Homes completed, unsold 313   263   50  19%        
    Total homebuilding debt$922,194  $1,382,586  $(460,392) (33)%        
    Stockholders’ equity$3,249,952  $3,010,958  $238,994  8%        
    Book capitalization$4,172,146  $4,393,544  $(221,398) (5)%        
    Ratio of homebuilding debt-to-capital 22.1%  31.5% (9.4)%          
    Ratio of net homebuilding debt-to-net capital* 7.0%  14.6% (7.6)%          

    __________
    (1)         Homes under construction included 44 and 69 models as of September 30, 2024 and December 31, 2023, respectively.
    *      See “Reconciliation of Non-GAAP Financial Measures”


    CONSOLIDATED BALANCE SHEETS
    (in thousands, except share and per share amounts)
        
     September 30, December 31,
     2024 2023
    Assets(unaudited)  
    Cash and cash equivalents$675,957 $868,953
    Receivables 113,725  224,636
    Real estate inventories 3,412,633  3,337,483
    Investments in unconsolidated entities 130,798  131,824
    Mortgage loans held for sale 80,071  —
    Goodwill and other intangible assets, net 156,603  156,603
    Deferred tax assets, net 37,996  37,996
    Other assets 171,472  157,093
    Total assets$4,779,255 $4,914,588
        
    Liabilities   
    Accounts payable$75,214 $64,833
    Accrued expenses and other liabilities 456,418  453,531
    Loans payable 275,914  288,337
    Senior notes 646,280  1,094,249
    Mortgage repurchase facilities 75,465  —
    Total liabilities 1,529,291  1,900,950
        
    Commitments and contingencies   
        
    Equity   
    Stockholders’ equity:   
    Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively —  —
    Common stock, $0.01 par value, 500,000,000 shares authorized; 93,590,060 and 95,530,512 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively 936  955
    Additional paid-in capital —  —
    Retained earnings 3,249,016  3,010,003
    Total stockholders’ equity 3,249,952  3,010,958
    Noncontrolling interests 12  2,680
    Total equity 3,249,964  3,013,638
    Total liabilities and equity$4,779,255 $4,914,588
          


    CONSOLIDATED STATEMENT OF OPERATIONS
    (in thousands, except share and per share amounts)
    (unaudited)
        
     Three Months Ended September 30, Nine Months Ended September 30,
     2024 2023 2024 2023
    Homebuilding:       
    Home sales revenue$1,113,681 $825,295 $3,165,042 $2,412,777
    Land and lot sales revenue 12,552  1,714  23,780  10,506
    Other operations revenue 790  749  2,359  2,219
    Total revenues 1,127,023  827,758  3,191,181  2,425,502
    Cost of home sales 854,499  641,074  2,427,484  1,881,191
    Cost of land and lot sales 11,986  1,474  21,584  10,287
    Other operations expense 765  724  2,295  2,171
    Sales and marketing 53,744  42,874  160,772  127,977
    General and administrative 66,734  58,359  185,809  158,949
    Homebuilding income from operations 139,295  83,253  393,237  244,927
    Equity in income of unconsolidated entities 227  3  383  272
    Other income, net 6,658  11,664  31,818  30,361
    Homebuilding income before income taxes 146,180  94,920  425,438  275,560
    Financial Services:       
    Revenues 17,650  10,758  47,818  30,004
    Expenses 12,283  6,127  31,900  19,363
    Financial services income before income taxes 5,367  4,631  15,918  10,641
    Income before income taxes 151,547  99,551  441,356  286,201
    Provision for income taxes (39,788)  (22,942)  (112,599)  (71,764)
    Net income 111,759  76,609  328,757  214,437
    Net (income) loss attributable to noncontrolling interests —  (1,207)  59  (3,569)
    Net income available to common stockholders$111,759 $75,402 $328,816 $210,868
    Earnings per share       
    Basic$1.19 $0.77 $3.49 $2.12
    Diluted$1.18 $0.76 $3.46 $2.10
    Weighted average shares outstanding       
    Basic 93,600,678  98,018,498  94,294,800  99,534,570
    Diluted 94,640,211  99,030,210  95,081,173  100,458,357
                


    MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY
    (dollars in thousands)
    (unaudited)
        
     Three Months Ended September 30, Nine Months Ended September 30,
     2024 2023 2024 2023
     New
    Homes
    Delivered    		 Average
    Sales
    Price    		 New
    Homes
    Delivered    		 Average
    Sales
    Price    		 New
    Homes
    Delivered    		 Average
    Sales
    Price    		 New
    Homes
    Delivered    		 Average
    Sales
    Price
    Arizona95 $743 167 $809 372 $728 497 $785
    California620  765 425  683 1,607  765 1,116  764
    Nevada133  579 103  749 363  633 289  751
    Washington70  880 48  847 197  884 106  823
    West total918  744 743  731 2,539  750 2,008  770
    Colorado38  719 17  733 133  708 110  754
    Texas417  550 287  527 1,332  552 775  565
    Central total455  564 304  538 1,465  566 885  589
    Carolinas(1)144  498 122  445 526  483 439  454
    Washington D.C. Area(2)102  1,002 54  1,185 182  973 129  1,125
    East total246  707 176  672 708  609 568  607
    Total1,619 $688 1,223 $675 4,712 $672 3,461 $697
                    
     Three Months Ended September 30, Nine Months Ended September 30,
     2024 2023 2024 2023
     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
    Arizona126  15.0 129  14.0 464  14.0 435  13.6
    California418  43.4 508  48.8 1,607  44.1 1,996  50.6
    Nevada71  8.0 146  10.5 343  8.6 335  8.6
    Washington52  5.3 44  5.5 236  5.6 166  5.4
    West total667  71.7 827  78.8 2,650  72.3 2,932  78.2
    Colorado32  10.8 39  9.5 104  10.7 118  7.6
    Texas372  50.0 454  49.0 1,296  51.5 1,262  40.8
    Central total404  60.8 493  58.5 1,400  62.2 1,380  48.4
    Carolinas(1)105  10.0 139  14.5 414  10.7 578  14.4
    Washington D.C. Area(2)76  7.5 54  3.0 253  6.4 154  3.3
    East total181  17.5 193  17.5 667  17.1 732  17.7
    Total1,252  150.0 1,513  154.8 4,717  151.6 5,044  144.3

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


    MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY, continued
    (dollars in thousands)
    (unaudited)
        
     As of September 30, 2024 As of September 30, 2023
     Backlog
    Units    		 Backlog
    Dollar
    Value    		 Average
    Sales
    Price    		 Backlog
    Units    		 Backlog
    Dollar
    Value    		 Average
    Sales
    Price
    Arizona351 $271,255 $773 316 $233,631 $739
    California698  549,851  788 1,178  892,158  757
    Nevada111  62,969  567 171  112,684  659
    Washington129  133,547  1,035 95  90,768  955
    West total1,289  1,017,622  789 1,760  1,329,241  755
    Colorado19  13,654  719 58  39,254  677
    Texas670  396,253  591 769  448,721  584
    Central total689  409,907  595 827  487,975  590
    Carolinas(1)170  96,330  567 359  171,820  479
    Washington D.C. Area(2)177  207,731  1,174 109  128,283  1,177
    East total347  304,061  876 468  300,103  641
    Total2,325 $1,731,590 $745 3,055 $2,117,319 $693
                
     September 30, December 31,        
     2024 2023        
    Lots Owned or Controlled:           
    Arizona2,028  2,394        
    California10,564  10,148        
    Nevada1,608  1,785        
    Washington578  712        
    West total14,778  15,039        
    Colorado1,590  1,908        
    Texas10,413  10,056        
    Utah346  —        
    Central total12,349  11,964        
    Carolinas(1)4,751  4,038        
    Florida256  —        
    Washington D.C. Area(2)1,354  919        
    East total6,361  4,957        
    Total33,488  31,960        
                
     September 30, December 31,        
     2024 2023        
    Lots by Ownership Type:           
    Lots owned17,153  18,739        
    Lots controlled (3)16,335  13,221        
    Total33,488  31,960        

    (1)  Carolinas comprises North Carolina and South Carolina.
    (2)  Washington D.C. Area comprises Maryland, Virginia and the District of Columbia.
    (3)  As of September 30, 2024 and December 31, 2023, lots controlled included lots that were under land option contracts or purchase contracts. As of September 30, 2024 and December 31, 2023, lots controlled for Central include 3,358 and 3,561 lots, respectively, and lots controlled for East include 29 and 71 lots, respectively, which represent our expected share of lots owned by our investments in unconsolidated land development joint ventures.

    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 the 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 September 30,
     2024 % 2023 %
     (dollars in thousands)
    Home sales revenue$1,113,681  100.0% $825,295  100.0%
    Cost of home sales 854,499  76.7%  641,074  77.7%
    Homebuilding gross margin 259,182  23.3%  184,221  22.3%
    Add:  interest in cost of home sales 37,687  3.4%  27,035  3.3%
    Add:  impairments and lot option abandonments 1,074  0.1%  197  0.0%
    Adjusted homebuilding gross margin$297,943  26.8% $211,453  25.6%
    Homebuilding gross margin percentage 23.3%    22.3%  
    Adjusted homebuilding gross margin percentage 26.8%    25.6%  
                


     Nine Months Ended September 30,
     2024 % 2023 %
     (dollars in thousands)
    Home sales revenue$3,165,042  100.0% $2,412,777  100.0%
    Cost of home sales 2,427,484  76.7%  1,881,191  78.0%
    Homebuilding gross margin 737,558  23.3%  531,586  22.0%
    Add:  interest in cost of home sales 107,330  3.4%  72,627  3.0%
    Add:  impairments and lot option abandonments 2,444  0.1%  12,675  0.5%
    Adjusted homebuilding gross margin$847,332  26.8% $616,888  25.6%
    Homebuilding gross margin percentage 23.3%    22.0%  
    Adjusted homebuilding gross margin percentage 26.8%    25.6%  
                

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
    (unaudited)

    The following table reconciles the Company’s ratio of homebuilding debt-to-capital to the non-GAAP ratio of net homebuilding debt-to-net capital. We believe that the ratio of net homebuilding 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.

     September 30, 2024 December 31, 2023
    Loans payable$275,914  $288,337 
    Senior notes 646,280   1,094,249 
    Mortgage repurchase facilities 75,465   — 
    Total debt 997,659   1,382,586 
    Less: mortgage repurchase facilities (75,465)   — 
    Total homebuilding debt 922,194   1,382,586 
    Stockholders’ equity 3,249,952   3,010,958 
    Total capital$4,172,146  $4,393,544 
    Ratio of homebuilding debt-to-capital(1) 22.1%   31.5% 
        
    Total homebuilding debt$922,194  $1,382,586 
    Less: Cash and cash equivalents (675,957)   (868,953) 
    Net homebuilding debt 246,237   513,633 
    Stockholders’ equity 3,249,952   3,010,958 
    Net capital$3,496,189  $3,524,591 
    Ratio of net homebuilding debt-to-net capital(2) 7.0%   14.6% 

    __________
    (1)      The ratio of homebuilding debt-to-capital is computed as the quotient obtained by dividing total homebuilding debt by the sum of total homebuilding debt plus stockholders’ equity.
    (2)      The ratio of net homebuilding debt-to-net capital is computed as the quotient obtained by dividing net homebuilding debt (which is total homebuilding debt less cash and cash equivalents) by the sum of net homebuilding 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 September 30, Nine Months Ended September 30,
     2024 2023 2024 2023
     (in thousands)
    Net income available to common stockholders$111,759  $75,402  $328,816  $210,868 
    Interest expense:       
    Interest incurred 25,253   36,919   91,787   111,792 
    Interest capitalized (25,253)   (36,919)   (91,787)   (111,792) 
    Amortization of interest in cost of sales 38,762   27,264   108,772   73,196 
    Provision for income taxes 39,788   22,942   112,599   71,764 
    Depreciation and amortization 8,548   6,884   23,572   20,066 
    EBITDA 198,857   132,492   573,759   375,894 
    Amortization of stock-based compensation 8,708   6,989   24,327   15,012 
    Impairments and lot option abandonments 1,074   197   2,444   12,675 
    Adjusted EBITDA$208,639  $139,678  $600,530  $403,581 



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