Tri Pointe Homes, Inc. Reports 2024 Third Quarter Results

-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:

[email protected], 949-478-8696

Media Contact:

Carol Ruiz, [email protected], 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
Arizona	95		$	743		167		$	809		372		$	728		497		$	785
California	620			765		425			683		1,607			765		1,116			764
Nevada	133			579		103			749		363			633		289			751
Washington	70			880		48			847		197			884		106			823
West total	918			744		743			731		2,539			750		2,008			770
Colorado	38			719		17			733		133			708		110			754
Texas	417			550		287			527		1,332			552		775			565
Central total	455			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 total	246			707		176			672		708			609		568			607
Total	1,619		$	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
Arizona	126			15.0		129			14.0		464			14.0		435			13.6
California	418			43.4		508			48.8		1,607			44.1		1,996			50.6
Nevada	71			8.0		146			10.5		343			8.6		335			8.6
Washington	52			5.3		44			5.5		236			5.6		166			5.4
West total	667			71.7		827			78.8		2,650			72.3		2,932			78.2
Colorado	32			10.8		39			9.5		104			10.7		118			7.6
Texas	372			50.0		454			49.0		1,296			51.5		1,262			40.8
Central total	404			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 total	181			17.5		193			17.5		667			17.1		732			17.7
Total	1,252			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
Arizona	351		$	271,255		$	773		316		$	233,631		$	739
California	698			549,851			788		1,178			892,158			757
Nevada	111			62,969			567		171			112,684			659
Washington	129			133,547			1,035		95			90,768			955
West total	1,289			1,017,622			789		1,760			1,329,241			755
Colorado	19			13,654			719		58			39,254			677
Texas	670			396,253			591		769			448,721			584
Central total	689			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 total	347			304,061			876		468			300,103			641
Total	2,325		$	1,731,590		$	745		3,055		$	2,117,319		$	693
	September 30,		December 31,
	2024		2023
Lots Owned or Controlled:
Arizona	2,028			2,394
California	10,564			10,148
Nevada	1,608			1,785
Washington	578			712
West total	14,778			15,039
Colorado	1,590			1,908
Texas	10,413			10,056
Utah	346			—
Central total	12,349			11,964
Carolinas(1)	4,751			4,038
Florida	256			—
Washington D.C. Area(2)	1,354			919
East total	6,361			4,957
Total	33,488			31,960
	September 30,		December 31,
	2024		2023
Lots by Ownership Type:
Lots owned	17,153			18,739
Lots controlled (3)	16,335			13,221
Total	33,488			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