As time continues to pass between TRI Pointe’s merger with Weyerhaeuser Real Estate Company, the Irvine, Calif.-based builder enjoys more benefits.
This past third quarter, 2015's Builder of the Year garnered $48.4 million in home sales gross margin due to higher home sales revenue resulting from a 35% increase in new home deliveries and a savings of $21.7 million related to restructuring and transaction-related expenses (with the merger) incurred in the prior year.
Other highlights of the quarter included net income of $50.2 million, a 24% increase in new home orders, a 35% rise in deliveries, and gross margins pushing to 21%.
“TRI Pointe Group delivered another strong quarter marked by year-over-year growth in revenues, net income and orders,” commented CEO Doug Bauer in a statement. “In addition, the company’s third quarter results met or exceeded our guidance for new home deliveries, homebuilding gross margins and community openings. These achievements are a reflection of TRI Pointe Group’s success in combining and integrating the six homebuilding brands, and the strength of the deeply experienced operating teams in each of their local markets.”
TRI Pointe’s average active selling communities increased to 120.8 as compared to 107.0 for the same period in the prior year, mainly due to TRI Pointe Homes which increased average active selling communities by 12.3 in the current year. The builder’s absorption rate per average selling community for the three months ended September 30 increased 10% to 8.2 orders (2.7 monthly) compared to 7.5 orders (2.5 monthly) during the same period in 2014.
TRI Pointe ended the quarter with 1,856 homes in backlog, representing approximately $1.1 billion in future home sales revenue.
“While California continues to be the main driver of earnings for our company, each of the TRI Pointe brands continues to make solid contributions to the bottom line,” said Tom Mitchell, TRI Pointe Group’s president and COO. “We are extremely pleased with the level of execution demonstrated by each of our brands.”