Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 29, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'TPH | ' |
Entity Registrant Name | 'TRI Pointe Homes, Inc. | ' |
Entity Central Index Key | '0001561680 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 31,632,533 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $32,046 | $35,261 |
Real estate inventories | 484,483 | 455,642 |
Contracts and accounts receivable | 1,855 | 1,697 |
Deferred tax assets | 4,611 | 4,611 |
Other assets | 15,572 | 8,824 |
Total Assets | 538,567 | 506,035 |
Liabilities and Stockholders' Equity | ' | ' |
Accounts payable | 16,006 | 23,397 |
Accrued liabilities | 18,761 | 22,220 |
Notes payable | 176,933 | 138,112 |
Total Liabilities | 211,700 | 183,729 |
Stockholders' Equity: | ' | ' |
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares outstanding as of March 31, 2014 and December 31, 2013, respectively | ' | ' |
Common stock, $0.01 par value, 500,000,000 shares authorized; 31,632,533 and 31,597,907 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 316 | 316 |
Additional paid-in capital | 311,141 | 310,878 |
Retained earnings | 15,410 | 11,112 |
Total Stockholders' Equity | 326,867 | 322,306 |
Total Liabilities and Stockholders' Equity | $538,567 | $506,035 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares outstanding | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 31,632,533 | 31,597,907 |
Common stock, shares outstanding | 31,632,533 | 31,597,907 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Home sales | $72,812 | $23,857 |
Fee building | ' | 4,031 |
Total revenues | 72,812 | 27,888 |
Expenses: | ' | ' |
Cost of home sales | 56,432 | 19,449 |
Fee building | ' | 3,625 |
Sales and marketing | 2,486 | 1,330 |
General and administrative | 5,892 | 3,313 |
Total expenses | 64,810 | 27,717 |
Income from operations | 8,002 | 171 |
Transaction expenses (Note 1) | -548 | ' |
Other income (expense), net | -9 | 172 |
Income before income taxes | 7,445 | 343 |
Provision for income taxes | -3,147 | -73 |
Net income | $4,298 | $270 |
Earnings per share (Note 2) | ' | ' |
Basic | $0.14 | $0.01 |
Diluted | $0.14 | $0.01 |
Weighted average number of shares (Note 2) | ' | ' |
Basic | 31,613,274 | 28,264,574 |
Diluted | 31,643,070 | 28,274,188 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' |
Net income | $4,298 | $270 |
Unrealized gain on marketable securities available for sale: | ' | ' |
Unrealized holding gain arising during the period | ' | 101 |
Reclassification adjustment for gains included in net income | ' | -40 |
Unrealized gain on marketable securities, net | ' | 61 |
Comprehensive income | $4,298 | $331 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $4,298 | $270 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 71 | 105 |
Amortization of stock-based compensation | 566 | 327 |
Gain on sale of marketable securities | ' | -40 |
Changes in operating assets and liabilities: | ' | ' |
Real estate inventories | -28,841 | -51,079 |
Contracts and accounts receivable | -158 | -728 |
Other assets | -6,716 | 1,127 |
Accounts payable | -7,391 | 2,616 |
Accrued liabilities | -3,459 | -14 |
Net cash used in operating activities | -41,630 | -47,416 |
Cash flows from investing activities | ' | ' |
Purchases of furniture and equipment | -103 | -129 |
Purchases of marketable securities | ' | -125,000 |
Sales of marketable securities | ' | 65,000 |
Net cash used in investing activities | -103 | -60,129 |
Cash flows from financing activities | ' | ' |
Borrowings from notes payable | 105,671 | 24,575 |
Repayments of notes payable | -66,850 | -21,047 |
Minimum tax withholding paid on behalf of employees for stock awards | -303 | ' |
Net proceeds from issuance of common stock | ' | 155,408 |
Net cash provided by financing activities | 38,518 | 158,936 |
Net increase (decrease) in cash and cash equivalents | -3,215 | 51,391 |
Cash and cash equivalents - beginning of period | 35,261 | 19,824 |
Cash and cash equivalents - end of period | 32,046 | 71,215 |
Supplemental disclosure of cash flow information | ' | ' |
Interest paid, net of amounts capitalized | ' | ' |
Income taxes paid | $7,800 | ' |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Organization and Basis of Presentation | ' |
1. Organization and Basis of Presentation | |
Organization | |
TRI Pointe Homes, Inc. is engaged in the design, construction and sale of innovative single-family homes in major metropolitan areas located throughout California and Colorado. The majority of our revenues and profits are generated in California. In January 2013, the Company completed its initial public offering (“IPO”) in which it issued and sold 10,000,000 shares of common stock at the public offering price of $17.00 per share. | |
WRECO Transactions | |
On November 4, 2013, the Company announced that its board of directors approved a transaction agreement with Weyerhaeuser Company, a Washington corporation (“Weyerhaeuser”), pursuant to which Weyerhaeuser Real Estate Company (“WRECO”), a Washington corporation and an indirect wholly owned subsidiary of Weyerhaeuser, will combine with Topaz Acquisition, Inc., a Washington corporation and a wholly owned subsidiary of TRI Pointe, (“Merger Sub”) in a transaction valued at approximately $2.7 billion as of that date (the “Transaction Agreement”). Pursuant to the Transaction Agreement, Weyerhaeuser will distribute all the shares of common stock of WRECO (the “WRECO Common Shares”) to its shareholders (i) on a pro rata basis, (ii) in an exchange offer, or (iii) in a combination thereof (the “Distribution”). Weyerhaeuser will determine which approach it will take to consummate the Distribution prior to closing the transaction and no decision has been made at this time. Immediately following the Distribution, Merger Sub will merge with and into WRECO (the “Merger”), with WRECO surviving the Merger and becoming a wholly owned subsidiary of the Company. We expect to issue 129,700,000 shares of our common stock in the Merger, excluding shares to be issued for equity awards held by WRECO employees that are being assumed by us. As a result of the WRECO Transactions, the Company has incurred due diligence and other related transaction expenses of $548,000 during the three months ended March 31, 2014. | |
In order to complete the Merger and the related transactions, (i) WRECO will incur new indebtedness of $800 million or more in the form of (a) debt securities, (b) senior unsecured bridge loans, or (c) a combination thereof; (ii) WRECO will make a cash payment of approximately $739 million, subject to adjustment, to Weyerhaeuser NR Company, the current direct parent of WRECO and a subsidiary of Weyerhaeuser, which cash will be retained by Weyerhaeuser and its subsidiaries (other than WRECO and its subsidiaries); and (iii) Weyerhaeuser will cause certain assets relating to Weyerhaeuser’s real estate business to be transferred to, and certain liabilities relating to Weyerhaeuser’s real estate business to be assumed by, WRECO and its subsidiaries and cause certain assets of WRECO that will be excluded from the transaction to be transferred to, and certain liabilities that will be excluded from the transaction to be assumed by, Weyerhaeuser and its subsidiaries (other than WRECO and its subsidiaries). | |
Basis of Presentation | |
The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with GAAP have been condensed or omitted. | |
In our opinion, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly our consolidated financial position as of March 31, 2014, the results of our consolidated operations for the three months ended March 31, 2014 and 2013, and our consolidated cash flows for the three months ended March 31, 2014 and 2013. The results of our consolidated operations for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for the full year due to seasonal variations in operating results and other factors. The consolidated balance sheet at December 31, 2013 has been taken from the audited consolidated financial statements as of that date. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2013, which are contained in our annual report on Form 10-K for that period. | |
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts have been eliminated upon consolidation. Certain prior period amounts have been reclassified to conform to current period presentation. Subsequent events have been evaluated through the date the financial statements were issued. | |
Unless the context otherwise requires, the terms “we”, “us”, “our” and “the Company” refer to TRI Pointe Homes, Inc. (and its consolidated subsidiaries). | |
Use of Estimates | |
The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies. Accordingly, actual results could differ materially from these estimates. | |
Recently Issued Accounting Standards | |
In April 2014, the FASB issued amendments to Accounting Standards Update 2014-08 (ASU 2014-08), Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The update requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. The amendments are effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2014 (early adoption is permitted only for disposals that have not been previously reported). The implementation of the amended guidance is not expected to have a material impact on our consolidated financial position or results of operations. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share | ' | ||||||||
2. Earnings Per Share | |||||||||
The following table sets forth the components used in the computation of basic and diluted earnings per share (dollars in thousands, except share and per share amounts): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net income | $ | 4,298 | $ | 270 | |||||
Denominator: | |||||||||
Basic weighted-average shares outstanding | 31,613,274 | 28,264,574 | |||||||
Effect of dilutive shares: | |||||||||
Unvested restricted stock units(1) | 29,796 | 9,614 | |||||||
Diluted weighted-average shares outstanding | 31,643,070 | 28,274,188 | |||||||
Basic earnings per share(2) | $ | 0.14 | $ | 0.01 | |||||
Diluted earnings per share(1) | $ | 0.14 | $ | 0.01 | |||||
-1 | For the three months ended March 31, 2014 and 2013, no stock options were included in the diluted income per share calculation as the effect of their inclusion would be antidilutive. | ||||||||
-2 | On January 30, 2013 the Company completed its initial public offering (“IPO”) in which it issued and sold 10 million shares of common stock at the public offering price of $17.00 per share. Basic and diluted income (loss) per share for the three months ended March 31, 2013 give effect to the conversion of the Company’s members’ equity into common stock on January 30, 2013 as though the conversion had occurred as of the beginning of the reporting period or the original date of issuance, if later. The number of shares converted was based on the actual IPO price of $17.00 per share. |
Real_Estate_Inventories
Real Estate Inventories | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Real Estate Inventories | ' | ||||||||
3. Real Estate Inventories | |||||||||
Real estate inventories consisted of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Inventories owned: | |||||||||
Deposits and pre-acquisition costs | $ | 23,176 | $ | 19,714 | |||||
Land under development | 334,851 | 326,209 | |||||||
Homes completed or under construction | 109,385 | 92,901 | |||||||
Model homes | 17,071 | 16,818 | |||||||
$ | 484,483 | $ | 455,642 | ||||||
Model homes, homes completed, and homes under construction include all costs associated with home construction, including land, development, indirect, permits, and vertical construction. Land under development includes costs incurred during site development such as land, development, indirect, and permits. Land is classified as held for future development if no significant development has occurred. | |||||||||
Interest incurred, capitalized and expensed were as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Interest incurred | $ | 1,236 | $ | 734 | |||||
Interest capitalized | (1,236 | ) | (734 | ) | |||||
Interest expensed | $ | — | $ | — | |||||
Capitalized interest in beginning inventory | $ | 2,264 | $ | 1,364 | |||||
Interest capitalized as a cost of inventory | 1,236 | 734 | |||||||
Interest previously capitalized as a cost of inventory, included in cost of sales | (422 | ) | (256 | ) | |||||
Capitalized interest in ending inventory | $ | 3,078 | $ | 1,842 | |||||
Interest is capitalized to real estate inventory during development and other qualifying activities. Interest that is capitalized to real estate inventory is included in cost of sales as related units are closed. |
Other_Assets
Other Assets | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ||||||||
Other Assets | ' | ||||||||
4. Other Assets | |||||||||
Other Assets consisted of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Deferred loan costs | $ | 624 | $ | 704 | |||||
Prepaids | 11,159 | 5,631 | |||||||
Other assets | 3,789 | 2,489 | |||||||
$ | 15,572 | $ | 8,824 | ||||||
Notes_Payable
Notes Payable | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Notes Payable | ' | ||||||||
5. Notes Payable | |||||||||
Notes payable consisted of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Revolving credit facilities | $ | 150,615 | $ | 90,689 | |||||
Acquisition and development loans | 15,554 | 31,591 | |||||||
Construction loans | 10,764 | 15,832 | |||||||
$ | 176,933 | $ | 138,112 | ||||||
Secured Revolving Credit Facilities | |||||||||
The Company has two secured revolving credit facilities, one with a maximum loan commitment of $50 million (“$50 million revolving credit facility”) and another with a maximum loan commitment of $175 million (“$175 million revolving credit facility”). In March 2014, we entered into a modification agreement to increase the commitment amount under our $50 million revolving credit facility from $30 million to $50 million and to extend the initial maturity date to April 2015 and the final maturity date to April 2016, subject to specified conditions. Interest rates charged under the $50 million revolving credit facility include applicable LIBOR and prime rate pricing options, subject to a minimum interest rate floor. As of March 31, 2014, the outstanding balance under the $50 million revolving credit facility was $30.4 million with an interest rate of 3.75% per annum and $10.1 million of availability after considering the borrowing base provisions and outstanding letters of credit. As of December 31, 2013, the outstanding balance was $9.1 million with an interest rate of 3.75% per annum and $20.2 million of availability. | |||||||||
The $175 million revolving credit facility is a three-year revolving credit facility with a maturity date of July 2016 and the potential for a one-year extension of the term of the loan, subject to specified conditions and payment of an extension fee. Interest rates charged under the $175 million revolving credit facility are based on applicable LIBOR plus a margin, ranging from 250 to 370 basis points depending on our leverage ratio. As of March 31, 2014, the outstanding balance was $120.2 million with an interest rate of 2.69% per annum and $44.2 million of availability after considering the borrowing base provisions and outstanding letters of credit. As of December 31, 2013, the outstanding balance was $81.5 million with an interest rate of 2.92% per annum and $42.2 million of availability. | |||||||||
The Company may borrow under both facilities in the ordinary course of business to fund its operations, including its land development and homebuilding activities. The amount the Company may borrow is subject to applicable borrowing base provisions and concentration limitations, as defined therein, which may also limit the amount available or outstanding under the facility. | |||||||||
Secured Acquisition and Development and Construction Loans | |||||||||
The Company enters into secured acquisition and development loan agreements to purchase and develop land parcels. In addition, the Company enters into secured construction loan agreements for the construction of its model and production homes. The acquisition and development loans will be repaid as lots are released from the loans based upon a specific release price, as defined in each respective loan agreement. The construction loans will be repaid with proceeds from home closings based upon a specific release price, as defined in each respective loan agreement. | |||||||||
As of March 31, 2014, the Company had $22.3 million of aggregate acquisition and development loan commitments and $36.8 million of aggregate construction loan commitments, of which $15.6 million and $10.8 million was outstanding, respectively. The loans have maturity dates ranging from December 2014 and August 2016 including the six month extensions which are at our election (subject to certain conditions) and bear interest at a rate based on applicable LIBOR or Prime Rate pricing options plus an applicable margin, with certain loans containing a minimum interest rate floor of 4.0%. As of March 31, 2014, the weighted average interest rate was 3.6% per annum. | |||||||||
As of December 31, 2013, the Company had $43.2 million of aggregate acquisition and development loan commitments and $22.4 million of aggregate construction loan commitments, of which $31.6 million and $15.8 million was outstanding, respectively. The loans have maturity dates ranging from July 2014 and January 2016, including the six month extensions which are at our election (subject to certain conditions) and bear interest at a rate based on applicable LIBOR or Prime Rate pricing options plus an applicable margin, with certain loans containing a minimum interest rate floor of 4.0%. As of December 31, 2013, the weighted average interest rate was 3.5% per annum. | |||||||||
During the three months ended March 31, 2014 and 2013, the Company incurred interest of $1.2 million and $734,000, respectively, related to all notes payable outstanding during the period. Included in interest incurred was amortization of deferred financing costs of $80,000 and $0 for the three months ended March 31, 2014 and 2013, respectfully. Accrued interest payable at March 31, 2014 and 2013 amounted to $433,000 and $246,000, respectfully. All interest incurred during the three months ended March 31, 2014 and 2013 was capitalized to real estate inventories. | |||||||||
Under the revolving credit facilities and construction notes payable, the Company is required to comply with certain financial covenants, including but not limited to (i) a minimum tangible net worth; (ii) a maximum total liabilities to tangible net worth ratio; (iii) a minimum liquidity amount; (iv) maximum fixed charge coverage ratio; and (v) maximum land assets to tangible net worth ratio. The Company was in compliance with all financial covenants as of March 31, 2014 and December 31, 2013. |
Fair_Value_Disclosures
Fair Value Disclosures | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||||||||
6. Fair Value Disclosures | |||||||||||||||||||||
ASC 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at measurement date and requires assets and liabilities carried at fair value to be classified and disclosed in the following three categories: | |||||||||||||||||||||
• | Level 1—Quoted prices for identical instruments in active markets | ||||||||||||||||||||
• | Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date | ||||||||||||||||||||
• | Level 3—Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date | ||||||||||||||||||||
Nonfinancial assets and liabilities include items such as inventory and long lived assets that are measured at fair value when acquired and resulting from impairment, if deemed necessary. During the three months ended March 31, 2014 and the year ended December 31, 2013, the Company did not record any fair value adjustments to those financial and nonfinancial assets and liabilities measured at fair value on a nonrecurring basis. | |||||||||||||||||||||
Financial instruments as of March 31, 2014 and December 31, 2013 were comprised of secured revolving credit facilities, which provide financing for several real estate projects; secured acquisition and development loan agreements to purchase and develop land parcels, and; secured construction loan agreements for the construction of our model and production homes. | |||||||||||||||||||||
At March 31, 2014 and December 31, 2013, as required by ASC 820, Financial Instruments, the following presents net book values and estimated fair values of notes payable (in thousands): | |||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||
Hierarchy | Cost | Fair Value | Cost | Fair Value | |||||||||||||||||
Notes payable | |||||||||||||||||||||
Revolving credit facilities | Level 3 | $ | 150,615 | $ | 150,615 | $ | 90,689 | $ | 90,689 | ||||||||||||
Acquisition and development loans | Level 3 | 15,554 | 15,554 | 31,591 | 31,591 | ||||||||||||||||
Construction loans | Level 3 | 10,764 | 10,764 | 15,832 | 15,832 | ||||||||||||||||
Total notes payable | $ | 176,933 | $ | 176,933 | $ | 138,112 | $ | 138,112 | |||||||||||||
Estimated fair values of the outstanding revolving credit facilities, acquisition and development loans, and construction loans at March 31, 2014 and December 31, 2013 were based on cash flow models discounted at market interest rates that considered underlying risks of the debt. Due to the short term nature of the revolving credit facilities, acquisition and development loans and construction loans, book value approximated fair value at March 31, 2014 and December 31, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||
Commitments and Contingencies | ' | ||||||||
7. Commitments and Contingencies | |||||||||
Legal Matters | |||||||||
Lawsuits, claims and proceedings have been or may be instituted or asserted against us in the normal course of business, including actions brought on behalf of various classes of claimants. We are also subject to local, state and federal laws and regulations related to land development activities, house construction standards, sales practices, employment practices and environmental protection. As a result, we are subject to periodic examinations or inquiry by agencies administering these laws and regulations. | |||||||||
We record a reserve for potential legal claims and regulatory matters when they are probable of occurring and a potential loss is reasonably estimable. We accrue for these matters based on facts and circumstances specific to each matter and revise these estimates when necessary. | |||||||||
In view of the inherent difficulty of predicting outcomes of legal claims and related contingencies, we generally cannot predict their ultimate resolution, related timing or eventual loss. If our evaluations indicate loss contingencies that could be material are not probable, but are reasonably possible, we will disclose their nature with an estimate of possible range of losses or a statement that such loss is not reasonably estimable. At March 31, 2014, the Company did not have any accruals for asserted or unasserted matters. | |||||||||
Warranty | |||||||||
The Company currently provides a limited one year warranty covering workmanship and materials. In addition, our limited warranty (generally ranging from a minimum of two years up to the period covered by the applicable statute of repose) covers certain defined construction defects. The limited warranty covering construction defects is transferable to subsequent buyers not under direct contract with us and requires that homebuyers agree to the definitions and procedures set forth in the warranty, including the submission of unresolved construction-related disputes to binding arbitration. We reserve up to 1.0% of the sales price of each home to cover our estimated costs of self-insured retentions and deductible amounts under our general liability insurance policy and estimated costs for claims that may not be covered by applicable insurance or indemnities from our subcontractors. We believe that our reserves are adequate to cover the ultimate resolution of our potential liabilities associated with known and anticipated warranty and construction defect related claims and litigation. | |||||||||
We subcontract our homebuilding work to subcontractors who generally provide us with an indemnity and a certificate of insurance prior to receiving payments for their work and, therefore, claims relating to workmanship and materials are generally the primary responsibility of our subcontractors. However, such indemnity is significantly limited with respect to certain subcontractors that are added to our general liability insurance policy. | |||||||||
There can be no assurance, however, that the terms and limitations of the limited warranty will be effective against claims made by homebuyers, that we will be able to renew our insurance coverage or renew it at reasonable rates, that we will not be liable for damages, the cost of repairs, and/or the expense of litigation surrounding possible construction defects, soil subsidence or building related claims or that claims will not arise out of uninsurable events or circumstances not covered by insurance and not subject to effective indemnification agreements with our subcontractors. | |||||||||
Estimated future direct warranty costs are accrued in accrued liabilities on the balance sheet and charged to cost of sales in the period when the related homebuilding revenues are recognized. Amounts accrued are based upon historical experience rates. We also consider historical experience of our peers due to our limited history related to home sales. Indirect warranty overhead salaries and related costs are charged to the reserve in the period incurred. We assess the adequacy of our warranty accrual on a quarterly basis and adjust the amounts recorded if necessary. | |||||||||
Warranty reserves consisted of the following (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Warranty reserves, beginning of period | $ | 3,338 | $ | 1,593 | |||||
Warranty reserves accrued | 727 | 107 | |||||||
Warranty expenditures | (429 | ) | (125 | ) | |||||
Warranty reserves, end of period | $ | 3,636 | $ | 1,575 | |||||
Performance Bonds | |||||||||
We obtain surety bonds in the normal course of business to ensure completion of certain infrastructure improvements of our projects. As of March 31, 2014 and December 31, 2013, the Company had outstanding surety bonds totaling $47.6 million and $41.4 million, respectively. The beneficiaries of the bonds are various municipalities. In the unlikely event that any such surety bond issued by a third party is called because the required improvements are not completed, the Company could be obligated to reimburse the issuer of the bond. | |||||||||
Purchase Obligations | |||||||||
In the ordinary course of business, we enter into land option contracts in order to procure lots for the construction of our homes. We are subject to customary obligations associated with entering into contracts for the purchase of land and improved lots. These purchase contracts typically require a cash deposit and the purchase of properties under these contracts is generally contingent upon satisfaction of certain requirements by the sellers, including obtaining applicable property and development entitlements. We also utilize option contracts with land sellers as a method of acquiring land in staged takedowns, to help us manage the financial and market risk associated with land holdings, and to reduce the use of funds from our corporate financing sources. Option contracts generally require a non-refundable deposit for the right to acquire lots over a specified period of time at pre-determined prices. We generally have the right at our discretion to terminate our obligations under both purchase contracts and option contracts by forfeiting our cash deposit with no further financial responsibility to the land seller. As of March 31, 2014, we had $18.9 million of non-refundable cash deposits pertaining to land option contracts and purchase contracts for 963 lots with an aggregate remaining purchase price of approximately $241.4 million (net of deposits). As of December 31, 2013, we had $19.7 million of non-refundable cash deposits pertaining to land option contracts and purchase contracts for 1,184 lots with an aggregate remaining purchase price of approximately $262.1 million (net of deposits). | |||||||||
Our utilization of land option contracts is dependent on, among other things, the availability of land sellers willing to enter into option takedown arrangements, the availability of capital to financial intermediaries to finance the development of optioned lots, general housing market conditions, and local market dynamics. Options may be more difficult to procure from land sellers in strong housing markets and are more prevalent in certain geographic regions. | |||||||||
We analyze each of our land option contracts under the provisions of ASC 810, Consolidation (“ASC 810”). Under ASC 810, a non-refundable deposit paid to an entity is deemed to be a variable interest that will absorb some or all of the entity’s expected losses if they occur. Our land purchase and lot option deposits generally represent our maximum exposure to the land seller if we elect not to purchase the optioned property. In some instances, we may also expend funds for due diligence, development and construction activities with respect to optioned land prior to takedown. Such costs are classified as inventories owned, which we would have to write off should we not exercise the option. Therefore, whenever we enter into a land option or purchase contract with an entity and make a non-refundable deposit, a variable interest entity (“VIE”) may have been created for financial reporting purposes. As of March 31, 2014 and December 31, 2013, the Company was not required to consolidate any VIEs nor did the Company write off any costs that had been capitalized under lot option contracts. In accordance with ASC 810, we perform ongoing reassessments of whether we are the primary beneficiary of a VIE. |
Stockholders_Equity_and_StockB
Stockholders' Equity and Stock-Based Compensation | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||||||
Stockholders' Equity and Stock-Based Compensation | ' | ||||||||||||||||||||||||||||
8. Stockholders’ Equity and Stock-Based Compensation | |||||||||||||||||||||||||||||
Stockholders’ Equity | |||||||||||||||||||||||||||||
A summary of changes in our stockholders’ equity is presented below (in thousands, except share amounts): | |||||||||||||||||||||||||||||
Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||||
Common | Additional | Accumulated | Accumulated | Total | Members’ | Total | |||||||||||||||||||||||
Stock | Paid-in | Deficit | Other | Stockholders’ | Equity | Equity | |||||||||||||||||||||||
Capital | Comprehensive | Equity | |||||||||||||||||||||||||||
Income | |||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 149,153 | $ | 149,153 | |||||||||||||||
Net income | — | — | 270 | — | 270 | — | 270 | ||||||||||||||||||||||
Unrealized gain on available-for-sale-investments | — | — | — | 61 | 61 | — | 61 | ||||||||||||||||||||||
Total comprehensive income | 331 | 331 | |||||||||||||||||||||||||||
Conversion of members’ equity into common stock | 216 | 153,199 | (4,262 | ) | — | 149,153 | (149,153 | ) | — | ||||||||||||||||||||
Issuance of common stock, net of issuance costs | 100 | 155,308 | — | — | 155,408 | — | 155,408 | ||||||||||||||||||||||
Stock-based compensation expense | — | 327 | — | — | 327 | — | 327 | ||||||||||||||||||||||
Balance at March 31, 2013 | $ | 316 | $ | 308,834 | $ | (3,992 | ) | $ | 61 | $ | 305,219 | $ | — | $ | 305,219 | ||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||
Common | Additional | Retained | Total | ||||||||||||||||||||||||||
Stock | Paid-in | Earnings | Stockholders’ | ||||||||||||||||||||||||||
Capital | Equity | ||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 316 | $ | 310,878 | $ | 11,112 | $ | 322,306 | |||||||||||||||||||||
Net income | — | — | 4,298 | 4,298 | |||||||||||||||||||||||||
Stock-based compensation expense | — | 566 | — | 566 | |||||||||||||||||||||||||
Minimum tax withholding paid on behalf of employees for stock awards | — | (303 | ) | — | (303 | ) | |||||||||||||||||||||||
Balance at March 31, 2014 | $ | 316 | $ | 311,141 | $ | 15,410 | $ | 326,867 | |||||||||||||||||||||
In January 2013, the Company completed its IPO in which it issued and sold 10,000,000 shares of common stock at the public offering price of $17.00 per share. The Company received $155.4 million in net proceeds after deducting underwriting discounts and commissions of $11.9 million and other net offering expenses of $2.7 million. In preparation of the IPO, the Company reorganized from a Delaware limited liability company into a Delaware corporation and was renamed TRI Pointe Homes, Inc. Upon the close of the IPO and as of March 31, 2013, the Company had 31,597,907 common shares outstanding. As of March 31, 2014, the Company had 31,632,533 common shares outstanding. | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
The Company’s stock compensation plan, the 2013 Long-Term Incentive Plan (“2013 Incentive Plan”), was adopted by our board of directors in January 2013. The 2013 Incentive Plan provides for the grant of equity-based awards, including options to purchase shares of common stock, stock appreciation rights, common stock, restricted stock, restricted stock units and performance awards. The 2013 Incentive Plan will automatically expire on the tenth anniversary of its effective date. Our board of directors may terminate or amend the 2013 Incentive Plan at any time, subject to any requirement of stockholder approval required by applicable law, rule or regulation. | |||||||||||||||||||||||||||||
The number of shares of our common stock that may be issued under the 2013 Incentive Plan is 2,527,833 shares. To the extent that shares of our common stock subject to an outstanding option, stock appreciation right, stock award or performance award granted under the 2013 Incentive Plan or any predecessor plan are not issued or delivered by reason of the expiration, termination, cancellation or forfeiture of such award or the settlement of such award in cash, then such shares of our common stock generally shall again be available under our the 2013 Incentive Plan. As of March 31, 2014 there were 2,113,988 shares available for future grant in the 2013 Incentive Plan. | |||||||||||||||||||||||||||||
The Company has issued stock option awards and restricted stock unit awards against the 2013 Incentive Plan. The exercise price of our stock-based awards may not be less than the market value of our common stock on the date of grant. The fair value for stock options is established at the date of grant using the Black-Scholes model for time based vesting awards. Our stock option awards typically vest over a one to three year period and expire ten years from the date of grant. Our restricted stock awards are valued based on the closing price of our common stock on the date of grant and typically vest over a one to three year period. | |||||||||||||||||||||||||||||
The following table presents compensation expense recognized related to all stock-based awards (in thousands): | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Total stock-based compensation | $ | 566 | $ | 327 | |||||||||||||||||||||||||
As of March 31, 2014, total compensation cost related to all non-vested awards not yet recognized was $3.8 million and the weighted average term over which the expense was expected to be recognized was 1.4 years. | |||||||||||||||||||||||||||||
Summary of Stock Option Activity | |||||||||||||||||||||||||||||
The following table presents a summary of stock option awards relating to our 2013 Incentive Plan for the three months ended March 31, 2014 (dollars in thousands, except per share amounts): | |||||||||||||||||||||||||||||
Three Months Ended March, 31 2014 | |||||||||||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||||||
Exercise | Remaining | Aggregate | |||||||||||||||||||||||||||
Price | Contractual | Intrinsic | |||||||||||||||||||||||||||
Options | Per Share | Life | Value | ||||||||||||||||||||||||||
Options outstanding at December 31, 2013 | 285,900 | $ | 17.04 | 9.1 | $ | 827 | |||||||||||||||||||||||
Granted | — | — | — | — | |||||||||||||||||||||||||
Exercised | — | — | — | — | |||||||||||||||||||||||||
Forfeited | — | — | — | — | |||||||||||||||||||||||||
Options outstanding at March 31, 2014 | 285,900 | 17.04 | 8.8 | — | |||||||||||||||||||||||||
Options exercisable at March 31, 2014 | 97,767 | 17.11 | 8.8 | — | |||||||||||||||||||||||||
There were no stock option awards granted during the three months ended March 31, 2014. On April 7, 2014, the Company granted an aggregate of 154,598 stock options to members of the executive management team. The stock option awards granted on April 7, 2014 ratably vest annually on the anniversary of the grant date over a three year period. The fair value for stock option awards granted on April 7, 2014 was $9.46 per share and was established at the date of grant using an option based model. | |||||||||||||||||||||||||||||
Summary of Restricted Stock Unit Activity | |||||||||||||||||||||||||||||
The following table presents a summary of restricted stock units (“RSUs”) relating to our 2013 Incentive Plan for the three months ended March 31, 2014 (dollars in thousands, except per share amounts): | |||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||
Weighted | |||||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||||
Grant Date | Aggregate | ||||||||||||||||||||||||||||
Restricted Stock | Fair Value | Intrinsic | |||||||||||||||||||||||||||
Units | Per Share | Value | |||||||||||||||||||||||||||
Nonvested RSUs at beginning of period | 145,517 | $ | 17.68 | $ | 2,900 | ||||||||||||||||||||||||
Granted | — | — | — | ||||||||||||||||||||||||||
Vested | (51,598 | ) | 17.81 | — | |||||||||||||||||||||||||
Forfeited | (600 | ) | 18.3 | 10 | |||||||||||||||||||||||||
Nonvested RSUs at end of period | 93,319 | 17.61 | 1,515 | ||||||||||||||||||||||||||
There were no restricted stock units granted during the three months ended March 31, 2014. On April 7, 2014, the Company granted an aggregate of 217,839 restricted stock units to employees, officers and directors. The restricted stock units granted to employees and officers on April 7, 2014 ratably vest annually on the anniversary of the grant date over a three year period. The restricted stock units granted to directors on April 7, 2014 vest on January 31, 2015, except the restricted stock units granted to a director who will leave the Board upon closing of the WRECO transaction will vest on the date they leave the Board based on the number of days served in 2014. The fair value of each restricted stock award granted on April 7, 2014 was measured using $16.17 per share, which was the closing stock price on the date of grant. Each award will be expensed on a straight-line basis over the vesting period. | |||||||||||||||||||||||||||||
Summary of Equity Based Incentive Units | |||||||||||||||||||||||||||||
On September 24, 2010, the Company granted equity based incentive units to management. In connection with our initial public offering in January 2013, the incentive units converted into shares of common stock. The recipients of the equity based incentive units have all the rights of a stockholder, including the rights to vote those shares and receive any dividends or distributions made with respect to those shares and any shares or other property received in respect of those shares; provided, however, any non-cash dividend or distribution with respect to the common stock shall be subject to the same vesting provisions as the incentive units. The vesting terms of the equity based incentive units are as follows: (1)18.75% of such units vested, subject to limitation in (3) below on the date following the first-year anniversary of the date of such officer’s employment; (2) 56.25% of such units vest, subject to limitation in (3) below in equal quarterly installments between the first and fourth-year anniversary of the date of such officer’s employment; (3) 25% of the awards granted in (1) and (2) will vest upon a liquidity event, as defined in each such recipient’s employment agreement; and (4) 25% of such units will be converted into a number of shares of restricted stock prior to a liquidity event. The grant-date fair value of the equity based incentive units granted during the period ended December 31, 2010 was $3.3 million. The Company did not grant any equity based incentive units and no equity based incentive units were forfeited during the three months ended March 31, 2014. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
9. Income Taxes | |
The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires an asset and liability approach for measuring deferred taxes based on temporary differences between the financial statements and tax bases of assets and liabilities using enacted tax rates for the years in which taxes are expected to be paid or recovered. Each quarter we assess our deferred tax asset to determine whether all or any portion of the asset is more likely than not unrealizable under ASC 740. We are required to establish a valuation allowance for any portion of the asset we conclude is more likely than not to be unrealizable. Our assessment considers, among other things, the nature, frequency and severity of our current and cumulative losses, forecasts of our future taxable income, the duration of statutory carryforward periods and tax planning alternatives. | |
As of March 31, 2014 and December 31, 2013, we had $4.6 million in deferred tax assets with no valuation allowance. The Company will continue to evaluate both positive and negative evidence in determining the need for a valuation allowance against its deferred tax assets. Changes in positive and negative evidence, including differences between the Company’s future operating results and the estimates utilized in the determination of the valuation allowance, could result in changes in the Company’s estimate of the valuation allowance against its deferred tax assets. The accounting for deferred taxes is based upon estimates of future results. Differences between the anticipated and actual outcomes of these future results could have a material impact on the Company’s consolidated results of operations or financial position. Also, changes in existing federal and state tax laws and tax rates could affect future tax results and the valuation allowance against the Company’s deferred tax assets. | |
Our income tax provision totaled $3.1 million and $73,000 for the three months ended March 31, 2014 and 2013, respectively. The Company classifies any interest and penalties related to income taxes assessed by jurisdiction as part of income tax expense. The Company has concluded that there were no significant uncertain tax positions requiring recognition in its financial statements, nor has the Company been assessed interest or penalties by any major tax jurisdictions related to prior years. As of March 31, 2014, the earliest tax year still subject to examination by the Internal Revenue Service is 2010. The earliest year still subject to examination by a significant state or local taxing jurisdiction is 2010. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Information | ' | ||||||||
10. Segment Information | |||||||||
The Company’s operations are organized into two reportable segments: homebuilding and fee building (construction services). In accordance with ASC 280, Segment Reporting, in determining the most appropriate reportable segments, we considered similar economic and other characteristics, including product types, average selling prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, and underlying demand and supply. | |||||||||
The reportable segments follow the same accounting policies as our consolidated financial statements described in Note 1. Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented. | |||||||||
As of December 31, 2013 we had completed all construction activity related to our fee building projects and do not expect material fee building activity in the future. Financial information relating to reportable segments for the three months ended March 31, 2014 and 2013, was as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Revenues | |||||||||
Homebuilding | $ | 72,812 | $ | 23,857 | |||||
Fee building | — | 4,031 | |||||||
$ | 72,812 | $ | 27,888 | ||||||
Gross profit | |||||||||
Homebuilding | $ | 16,380 | $ | 4,408 | |||||
Fee building | — | 406 | |||||||
$ | 16,380 | $ | 4,814 | ||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Homebuilding | $ | 537,799 | $ | 505,174 | |||||
Fee building | 768 | 861 | |||||||
$ | 538,567 | $ | 506,035 | ||||||
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Policies) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Organization | ' | |||
Organization | ||||
TRI Pointe Homes, Inc. is engaged in the design, construction and sale of innovative single-family homes in major metropolitan areas located throughout California and Colorado. The majority of our revenues and profits are generated in California. In January 2013, the Company completed its initial public offering (“IPO”) in which it issued and sold 10,000,000 shares of common stock at the public offering price of $17.00 per share. | ||||
Basis of Presentation | ' | |||
Basis of Presentation | ||||
The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with GAAP have been condensed or omitted. | ||||
In our opinion, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly our consolidated financial position as of March 31, 2014, the results of our consolidated operations for the three months ended March 31, 2014 and 2013, and our consolidated cash flows for the three months ended March 31, 2014 and 2013. The results of our consolidated operations for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for the full year due to seasonal variations in operating results and other factors. The consolidated balance sheet at December 31, 2013 has been taken from the audited consolidated financial statements as of that date. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2013, which are contained in our annual report on Form 10-K for that period. | ||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts have been eliminated upon consolidation. Certain prior period amounts have been reclassified to conform to current period presentation. Subsequent events have been evaluated through the date the financial statements were issued. | ||||
Unless the context otherwise requires, the terms “we”, “us”, “our” and “the Company” refer to TRI Pointe Homes, Inc. (and its consolidated subsidiaries). | ||||
Use of Estimates | ' | |||
Use of Estimates | ||||
The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies. Accordingly, actual results could differ materially from these estimates. | ||||
Recently Issued Accounting Standards | ' | |||
Recently Issued Accounting Standards | ||||
In April 2014, the FASB issued amendments to Accounting Standards Update 2014-08 (ASU 2014-08), Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The update requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. The amendments are effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2014 (early adoption is permitted only for disposals that have not been previously reported). The implementation of the amended guidance is not expected to have a material impact on our consolidated financial position or results of operations. | ||||
Fair Value Measurements and Disclosures | ' | |||
ASC 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at measurement date and requires assets and liabilities carried at fair value to be classified and disclosed in the following three categories: | ||||
• | Level 1—Quoted prices for identical instruments in active markets | |||
• | Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date | |||
• | Level 3—Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date | |||
Income Taxes | ' | |||
The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires an asset and liability approach for measuring deferred taxes based on temporary differences between the financial statements and tax bases of assets and liabilities using enacted tax rates for the years in which taxes are expected to be paid or recovered. Each quarter we assess our deferred tax asset to determine whether all or any portion of the asset is more likely than not unrealizable under ASC 740. We are required to establish a valuation allowance for any portion of the asset we conclude is more likely than not to be unrealizable. Our assessment considers, among other things, the nature, frequency and severity of our current and cumulative losses, forecasts of our future taxable income, the duration of statutory carryforward periods and tax planning alternatives. | ||||
Segment Reporting | ' | |||
In accordance with ASC 280, Segment Reporting, in determining the most appropriate reportable segments, we considered similar economic and other characteristics, including product types, average selling prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, and underlying demand and supply. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Computation of Basic and Diluted Earnings Per Share | ' | ||||||||
The following table sets forth the components used in the computation of basic and diluted earnings per share (dollars in thousands, except share and per share amounts): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net income | $ | 4,298 | $ | 270 | |||||
Denominator: | |||||||||
Basic weighted-average shares outstanding | 31,613,274 | 28,264,574 | |||||||
Effect of dilutive shares: | |||||||||
Unvested restricted stock units(1) | 29,796 | 9,614 | |||||||
Diluted weighted-average shares outstanding | 31,643,070 | 28,274,188 | |||||||
Basic earnings per share(2) | $ | 0.14 | $ | 0.01 | |||||
Diluted earnings per share(1) | $ | 0.14 | $ | 0.01 | |||||
-1 | For the three months ended March 31, 2014 and 2013, no stock options were included in the diluted income per share calculation as the effect of their inclusion would be antidilutive. | ||||||||
-2 | On January 30, 2013 the Company completed its initial public offering (“IPO”) in which it issued and sold 10 million shares of common stock at the public offering price of $17.00 per share. Basic and diluted income (loss) per share for the three months ended March 31, 2013 give effect to the conversion of the Company’s members’ equity into common stock on January 30, 2013 as though the conversion had occurred as of the beginning of the reporting period or the original date of issuance, if later. The number of shares converted was based on the actual IPO price of $17.00 per share. |
Real_Estate_Inventories_Tables
Real Estate Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Summary of Real Estate Inventories | ' | ||||||||
Real estate inventories consisted of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Inventories owned: | |||||||||
Deposits and pre-acquisition costs | $ | 23,176 | $ | 19,714 | |||||
Land under development | 334,851 | 326,209 | |||||||
Homes completed or under construction | 109,385 | 92,901 | |||||||
Model homes | 17,071 | 16,818 | |||||||
$ | 484,483 | $ | 455,642 | ||||||
Summary of Interest Incurred, Capitalized and Expensed | ' | ||||||||
Interest incurred, capitalized and expensed were as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Interest incurred | $ | 1,236 | $ | 734 | |||||
Interest capitalized | (1,236 | ) | (734 | ) | |||||
Interest expensed | $ | — | $ | — | |||||
Capitalized interest in beginning inventory | $ | 2,264 | $ | 1,364 | |||||
Interest capitalized as a cost of inventory | 1,236 | 734 | |||||||
Interest previously capitalized as a cost of inventory, included in cost of sales | (422 | ) | (256 | ) | |||||
Capitalized interest in ending inventory | $ | 3,078 | $ | 1,842 | |||||
Other_Assets_Tables
Other Assets (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ||||||||
Schedule of Other Assets | ' | ||||||||
Other Assets consisted of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Deferred loan costs | $ | 624 | $ | 704 | |||||
Prepaids | 11,159 | 5,631 | |||||||
Other assets | 3,789 | 2,489 | |||||||
$ | 15,572 | $ | 8,824 | ||||||
Notes_Payable_Tables
Notes Payable (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Components of Notes Payable | ' | ||||||||
Notes payable consisted of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Revolving credit facilities | $ | 150,615 | $ | 90,689 | |||||
Acquisition and development loans | 15,554 | 31,591 | |||||||
Construction loans | 10,764 | 15,832 | |||||||
$ | 176,933 | $ | 138,112 | ||||||
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Net Book Values and Estimated Fair Values of Notes Payable | ' | ||||||||||||||||||||
At March 31, 2014 and December 31, 2013, as required by ASC 820, Financial Instruments, the following presents net book values and estimated fair values of notes payable (in thousands): | |||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||
Hierarchy | Cost | Fair Value | Cost | Fair Value | |||||||||||||||||
Notes payable | |||||||||||||||||||||
Revolving credit facilities | Level 3 | $ | 150,615 | $ | 150,615 | $ | 90,689 | $ | 90,689 | ||||||||||||
Acquisition and development loans | Level 3 | 15,554 | 15,554 | 31,591 | 31,591 | ||||||||||||||||
Construction loans | Level 3 | 10,764 | 10,764 | 15,832 | 15,832 | ||||||||||||||||
Total notes payable | $ | 176,933 | $ | 176,933 | $ | 138,112 | $ | 138,112 | |||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||
Schedule of Warranty Reserves | ' | ||||||||
Warranty reserves consisted of the following (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Warranty reserves, beginning of period | $ | 3,338 | $ | 1,593 | |||||
Warranty reserves accrued | 727 | 107 | |||||||
Warranty expenditures | (429 | ) | (125 | ) | |||||
Warranty reserves, end of period | $ | 3,636 | $ | 1,575 | |||||
Stockholders_Equity_and_StockB1
Stockholders' Equity and Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||||||
Summary of Changes in Stockholders' Equity | ' | ||||||||||||||||||||||||||||
A summary of changes in our stockholders’ equity is presented below (in thousands, except share amounts): | |||||||||||||||||||||||||||||
Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||||
Common | Additional | Accumulated | Accumulated | Total | Members’ | Total | |||||||||||||||||||||||
Stock | Paid-in | Deficit | Other | Stockholders’ | Equity | Equity | |||||||||||||||||||||||
Capital | Comprehensive | Equity | |||||||||||||||||||||||||||
Income | |||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 149,153 | $ | 149,153 | |||||||||||||||
Net income | — | — | 270 | — | 270 | — | 270 | ||||||||||||||||||||||
Unrealized gain on available-for-sale-investments | — | — | — | 61 | 61 | — | 61 | ||||||||||||||||||||||
Total comprehensive income | 331 | 331 | |||||||||||||||||||||||||||
Conversion of members’ equity into common stock | 216 | 153,199 | (4,262 | ) | — | 149,153 | (149,153 | ) | — | ||||||||||||||||||||
Issuance of common stock, net of issuance costs | 100 | 155,308 | — | — | 155,408 | — | 155,408 | ||||||||||||||||||||||
Stock-based compensation expense | — | 327 | — | — | 327 | — | 327 | ||||||||||||||||||||||
Balance at March 31, 2013 | $ | 316 | $ | 308,834 | $ | (3,992 | ) | $ | 61 | $ | 305,219 | $ | — | $ | 305,219 | ||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||
Common | Additional | Retained | Total | ||||||||||||||||||||||||||
Stock | Paid-in | Earnings | Stockholders’ | ||||||||||||||||||||||||||
Capital | Equity | ||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 316 | $ | 310,878 | $ | 11,112 | $ | 322,306 | |||||||||||||||||||||
Net income | — | — | 4,298 | 4,298 | |||||||||||||||||||||||||
Stock-based compensation expense | — | 566 | — | 566 | |||||||||||||||||||||||||
Minimum tax withholding paid on behalf of employees for stock awards | — | (303 | ) | — | (303 | ) | |||||||||||||||||||||||
Balance at March 31, 2014 | $ | 316 | $ | 311,141 | $ | 15,410 | $ | 326,867 | |||||||||||||||||||||
Summary of Compensation Expense Recognized Related to all Stock-Based Awards | ' | ||||||||||||||||||||||||||||
The following table presents compensation expense recognized related to all stock-based awards (in thousands): | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Total stock-based compensation | $ | 566 | $ | 327 | |||||||||||||||||||||||||
Summary of Stock Option Awards | ' | ||||||||||||||||||||||||||||
The following table presents a summary of stock option awards relating to our 2013 Incentive Plan for the three months ended March 31, 2014 (dollars in thousands, except per share amounts): | |||||||||||||||||||||||||||||
Three Months Ended March, 31 2014 | |||||||||||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||||||
Exercise | Remaining | Aggregate | |||||||||||||||||||||||||||
Price | Contractual | Intrinsic | |||||||||||||||||||||||||||
Options | Per Share | Life | Value | ||||||||||||||||||||||||||
Options outstanding at December 31, 2013 | 285,900 | $ | 17.04 | 9.1 | $ | 827 | |||||||||||||||||||||||
Granted | — | — | — | — | |||||||||||||||||||||||||
Exercised | — | — | — | — | |||||||||||||||||||||||||
Forfeited | — | — | — | — | |||||||||||||||||||||||||
Options outstanding at March 31, 2014 | 285,900 | 17.04 | 8.8 | — | |||||||||||||||||||||||||
Options exercisable at March 31, 2014 | 97,767 | 17.11 | 8.8 | — | |||||||||||||||||||||||||
Summary of Restricted Stock Units Relating to 2013 Incentive Plan | ' | ||||||||||||||||||||||||||||
The following table presents a summary of restricted stock units (“RSUs”) relating to our 2013 Incentive Plan for the three months ended March 31, 2014 (dollars in thousands, except per share amounts): | |||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||
Weighted | |||||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||||
Grant Date | Aggregate | ||||||||||||||||||||||||||||
Restricted Stock | Fair Value | Intrinsic | |||||||||||||||||||||||||||
Units | Per Share | Value | |||||||||||||||||||||||||||
Nonvested RSUs at beginning of period | 145,517 | $ | 17.68 | $ | 2,900 | ||||||||||||||||||||||||
Granted | — | — | — | ||||||||||||||||||||||||||
Vested | (51,598 | ) | 17.81 | — | |||||||||||||||||||||||||
Forfeited | (600 | ) | 18.3 | 10 | |||||||||||||||||||||||||
Nonvested RSUs at end of period | 93,319 | 17.61 | 1,515 |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Summary of Financial Information Relating to Reportable Segments | ' | ||||||||
Financial information relating to reportable segments for the three months ended March 31, 2014 and 2013, was as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Revenues | |||||||||
Homebuilding | $ | 72,812 | $ | 23,857 | |||||
Fee building | — | 4,031 | |||||||
$ | 72,812 | $ | 27,888 | ||||||
Gross profit | |||||||||
Homebuilding | $ | 16,380 | $ | 4,408 | |||||
Fee building | — | 406 | |||||||
$ | 16,380 | $ | 4,814 | ||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Homebuilding | $ | 537,799 | $ | 505,174 | |||||
Fee building | 768 | 861 | |||||||
$ | 538,567 | $ | 506,035 | ||||||
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2013 | Nov. 04, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Initial public offering [Member] | WRECO Transaction [Member] | WRECO Transaction [Member] | WRECO Transaction [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock shares issued and sold | 31,632,533 | 31,597,907 | 10,000,000 | ' | ' | ' |
Common stock public offering price | ' | ' | $17 | ' | ' | ' |
Business acquisition, agreement date | ' | ' | ' | ' | ' | 4-Nov-13 |
Business acquisition, transaction cost | ' | ' | ' | $2,700,000,000 | ' | ' |
Common stock shares expected to issue | ' | ' | ' | 129,700,000 | ' | ' |
Due diligence and other related transaction expenses incurred | ' | ' | ' | ' | 548,000 | ' |
New indebtedness incurred by the merger company | ' | ' | ' | 800,000,000 | ' | ' |
Cash payment to be made subject to adjustment | ' | ' | ' | $739,000,000 | ' | ' |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Numerator: | ' | ' |
Net income | $4,298 | $270 |
Denominator: | ' | ' |
Basic weighted-average shares outstanding | 31,613,274 | 28,264,574 |
Effect of dilutive shares: | ' | ' |
Unvested restricted stock units | 29,796 | 9,614 |
Diluted weighted-average shares outstanding | 31,643,070 | 28,274,188 |
Basic earnings per share | $0.14 | $0.01 |
Diluted earnings per share | $0.14 | $0.01 |
Earnings_Per_Share_Computation1
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2013 | |
Initial public offering [Member] | ||||
Class of Stock [Line Items] | ' | ' | ' | ' |
Antidilutive stock options excluded from calculation of diluted income per share | ' | ' | ' | ' |
Common stock shares issued at initial public offering | 31,632,533 | ' | 31,597,907 | 10,000,000 |
Common stock public offering price | ' | ' | ' | $17 |
Real_Estate_Inventories_Summar
Real Estate Inventories - Summary of Real Estate Inventories (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories owned: | ' | ' |
Deposits and pre-acquisition costs | $23,176 | $19,714 |
Land under development | 334,851 | 326,209 |
Homes completed or under construction | 109,385 | 92,901 |
Model homes | 17,071 | 16,818 |
Total real estate inventories | $484,483 | $455,642 |
Real_Estate_Inventories_Summar1
Real Estate Inventories - Summary of Interest Incurred, Capitalized and Expensed (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | ' | ' |
Interest incurred | $1,236 | $734 |
Interest capitalized | -1,236 | -734 |
Interest expensed | ' | ' |
Capitalized interest in beginning inventory | 2,264 | 1,364 |
Interest capitalized as a cost of inventory | 1,236 | 734 |
Interest previously capitalized as a cost of inventory, included in cost of sales | -422 | -256 |
Capitalized interest in ending inventory | $3,078 | $1,842 |
Other_Assets_Schedule_of_Other
Other Assets - Schedule of Other Assets (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ' |
Deferred loan costs | $624 | $704 |
Prepaids | 11,159 | 5,631 |
Other assets | 3,789 | 2,489 |
Other assets, total | $15,572 | $8,824 |
Notes_Payable_Components_of_No
Notes Payable - Components of Notes Payable (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Notes payable | $176,933 | $138,112 |
Acquisition and development loans [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Notes payable | 15,554 | 31,591 |
Construction loans [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Notes payable | 10,764 | 15,832 |
Revolving credit facilities [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Notes payable | $150,615 | $90,689 |
Notes_Payable_Additional_Infor
Notes Payable - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 28, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
Facility | Notes payable [Member] | Notes payable [Member] | 175 million revolving credit facility [Member] | 175 million revolving credit facility [Member] | 50 million revolving credit facility [Member] | 50 million revolving credit facility [Member] | 50 million revolving credit facility [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Acquisition and development loans [Member] | Acquisition and development loans [Member] | Construction loans [Member] | Construction loans [Member] | |||
175 million revolving credit facility [Member] | 175 million revolving credit facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan commitments | ' | ' | ' | ' | ' | $175,000,000 | ' | $50,000,000 | ' | $30,000,000 | ' | ' | ' | ' | $22,300,000 | $43,200,000 | $36,800,000 | $22,400,000 |
Number of secured revolving credit facilities | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial maturity date | 1-Dec-14 | ' | 1-Jul-14 | ' | ' | ' | ' | 30-Apr-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Final maturity date | 31-Aug-16 | ' | 31-Jan-16 | ' | ' | ' | ' | 30-Apr-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding balance | ' | ' | ' | ' | ' | 120,200,000 | 81,500,000 | 30,400,000 | 9,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on revolving credit facility | ' | ' | ' | ' | ' | 2.69% | 2.92% | 3.75% | 3.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available secured revolving credit facility | ' | ' | ' | ' | ' | 44,200,000 | 42,200,000 | 10,100,000 | 20,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity term | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extension period of loan | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility maturity date | ' | ' | ' | ' | ' | 31-Jul-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LIBOR interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | 4.00% | 2.50% | 3.70% | ' | ' | ' | ' |
Loan commitments outstanding | 176,933,000 | ' | 138,112,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,554,000 | 31,591,000 | 10,764,000 | 15,832,000 |
Weighted average interest rate | 3.60% | ' | 3.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest capitalized to real estate inventories | 1,236,000 | 734,000 | ' | 1,200,000 | 734,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of deferred financing costs | ' | ' | ' | 80,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest payable | $433,000 | $246,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Disclosures_Additio
Fair Value Disclosures - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | ' | ' |
Fair value adjustments to financial and nonfinancial assets | ' | ' |
Fair value adjustments to financial and nonfinancial liabilities | ' | ' |
Fair_Value_Disclosures_Net_Boo
Fair Value Disclosures - Net Book Values and Estimated Fair Values of Notes Payable (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Notes payable | ' | ' |
Notes payable, Cost | $176,933 | $138,112 |
Notes payable, Fair Value | 176,933 | 138,112 |
Revolving credit facilities [Member] | Level 3 [Member] | ' | ' |
Notes payable | ' | ' |
Notes payable, Cost | 150,615 | 90,689 |
Notes payable, Fair Value | 150,615 | 90,689 |
Acquisition and development loans [Member] | ' | ' |
Notes payable | ' | ' |
Notes payable, Cost | 15,554 | 31,591 |
Acquisition and development loans [Member] | Level 3 [Member] | ' | ' |
Notes payable | ' | ' |
Notes payable, Cost | 15,554 | 31,591 |
Notes payable, Fair Value | 15,554 | 31,591 |
Construction loans [Member] | ' | ' |
Notes payable | ' | ' |
Notes payable, Cost | 10,764 | 15,832 |
Construction loans [Member] | Level 3 [Member] | ' | ' |
Notes payable | ' | ' |
Notes payable, Cost | 10,764 | 15,832 |
Notes payable, Fair Value | $10,764 | $15,832 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Lot | Lot | |
Commitment And Contingencies [Line Items] | ' | ' |
Accruals for asserted or unasserted matters | ' | ' |
Reserve percentage to cover estimated costs | 1.00% | ' |
Non-refundable cash deposits pertaining to land option contracts | 18.9 | 19.7 |
Purchase contracts for lots | 963 | 1,184 |
Aggregate purchase price | 241.4 | 262.1 |
Surety bonds [Member] | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Outstanding surety bonds | $47.60 | $41.40 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Warranty Reserves (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' |
Warranty reserves, beginning of period | $3,338 | $1,593 |
Warranty reserves accrued | 727 | 107 |
Warranty expenditures | -429 | -125 |
Warranty reserves, end of period | $3,636 | $1,575 |
Stockholders_Equity_and_StockB2
Stockholders' Equity and Stock-Based Compensation - Summary of Changes in Stockholders' Equity (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Schedule Of Shareholders Equity [Line Items] | ' | ' |
Beginning balance | $322,306 | $149,153 |
Net income | 4,298 | 270 |
Unrealized gain on available-for-sale-investments | ' | 61 |
Total comprehensive income | 4,298 | 331 |
Issuance of common stock, net of issuance costs | ' | 155,408 |
Stock-based compensation expense | 566 | 327 |
Minimum tax withholding paid on behalf of employees for stock awards | -303 | ' |
Ending balance | 326,867 | 305,219 |
Common Stock [Member] | ' | ' |
Schedule Of Shareholders Equity [Line Items] | ' | ' |
Beginning balance | 316 | ' |
Net income | ' | ' |
Unrealized gain on available-for-sale-investments | ' | ' |
Conversion of members' equity into common stock | ' | 216 |
Issuance of common stock, net of issuance costs | ' | 100 |
Stock-based compensation expense | ' | ' |
Minimum tax withholding paid on behalf of employees for stock awards | ' | ' |
Ending balance | 316 | 316 |
Additional Paid-in Capital [Member] | ' | ' |
Schedule Of Shareholders Equity [Line Items] | ' | ' |
Beginning balance | 310,878 | ' |
Net income | ' | ' |
Unrealized gain on available-for-sale-investments | ' | ' |
Conversion of members' equity into common stock | ' | 153,199 |
Issuance of common stock, net of issuance costs | ' | 155,308 |
Stock-based compensation expense | 566 | 327 |
Minimum tax withholding paid on behalf of employees for stock awards | -303 | ' |
Ending balance | 311,141 | 308,834 |
Retained Earnings (Accumulated Deficit) [Member] | ' | ' |
Schedule Of Shareholders Equity [Line Items] | ' | ' |
Beginning balance | 11,112 | ' |
Net income | 4,298 | 270 |
Unrealized gain on available-for-sale-investments | ' | ' |
Conversion of members' equity into common stock | ' | -4,262 |
Issuance of common stock, net of issuance costs | ' | ' |
Stock-based compensation expense | ' | ' |
Minimum tax withholding paid on behalf of employees for stock awards | ' | ' |
Ending balance | 15,410 | -3,992 |
Accumulated Other Comprehensive Income [Member] | ' | ' |
Schedule Of Shareholders Equity [Line Items] | ' | ' |
Beginning balance | ' | ' |
Net income | ' | ' |
Unrealized gain on available-for-sale-investments | ' | 61 |
Conversion of members' equity into common stock | ' | ' |
Issuance of common stock, net of issuance costs | ' | ' |
Stock-based compensation expense | ' | ' |
Ending balance | ' | 61 |
Total Stockholders' Equity [Member] | ' | ' |
Schedule Of Shareholders Equity [Line Items] | ' | ' |
Beginning balance | ' | ' |
Net income | ' | 270 |
Unrealized gain on available-for-sale-investments | ' | 61 |
Total comprehensive income | ' | 331 |
Conversion of members' equity into common stock | ' | 149,153 |
Issuance of common stock, net of issuance costs | ' | 155,408 |
Stock-based compensation expense | ' | 327 |
Ending balance | ' | 305,219 |
Members' Equity [Member] | ' | ' |
Schedule Of Shareholders Equity [Line Items] | ' | ' |
Beginning balance | ' | 149,153 |
Net income | ' | ' |
Unrealized gain on available-for-sale-investments | ' | ' |
Conversion of members' equity into common stock | ' | -149,153 |
Issuance of common stock, net of issuance costs | ' | ' |
Stock-based compensation expense | ' | ' |
Ending balance | ' | ' |
Stockholders_Equity_and_StockB3
Stockholder's Equity and Stock-Based Compensation - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | |||||||||||
Apr. 07, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Sep. 24, 2010 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2010 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jan. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
Stock options [Member] | Equity based incentive units [Member] | Equity based incentive units [Member] | Equity based incentive units [Member] | Equity based incentive units [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Initial public offering [Member] | Initial public offering [Member] | Initial public offering [Member] | 2013 Incentive Plan [Member] | 2013 Incentive Plan [Member] | |||||
Stock options [Member] | Restricted stock units [Member] | Stock options [Member] | Restricted stock units [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock shares issued at initial public offering | ' | 31,632,533 | ' | 31,597,907 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' |
Common stock public offering price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $17 | ' | ' | ' | ' |
Net proceeds from issuance of common stock | ' | ' | $155,408,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $155,400,000 | ' | ' | ' | ' |
Underwriting discounts and commissions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,900,000 | ' | ' | ' | ' |
Net offering expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,700,000 | ' | ' | ' | ' |
Common stock, shares outstanding | ' | 31,632,533 | ' | 31,597,907 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,632,533 | 31,597,907 | ' | ' |
Common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,527,833 |
Shares available for future grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,113,988 | ' |
Stock option awards, vesting period | '3 years | '3 years | ' | ' | ' | ' | ' | ' | ' | '1 year | '1 year | '3 years | '3 years | ' | ' | ' | ' | ' |
Expiration from the date of grant | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation cost related to all non-vested awards not yet recognized | ' | 3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period, expense to recognize | ' | '1 year 4 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options, Granted | 154,598 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option awards granted, fair value | $9.46 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units, granted | 217,839 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock awards granted, fair value | $16.17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting terms description | ' | ' | ' | ' | ' | 'The vesting terms of the equity based incentive units are as follows: (1)18.75% of such units vested, subject to limitation in (3) below on the date following the first-year anniversary of the date of such officerbs employment; (2) 56.25% of such units vest, subject to limitation in (3) below in equal quarterly installments between the first and fourth-year anniversary of the date of such officerbs employment; (3) 25% of the awards granted in (1) and (2) will vest upon a liquidity event, as defined in each such recipientbs employment agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity based incentive granted | ' | ' | ' | ' | ' | ' | ' | ' | $3,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity based incentive units, granted | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity based incentive units, forfeited | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_and_StockB4
Stockholders' Equity and Stock-Based Compensation - Summary of Compensation Expense Recognized Related to all Stock-Based Awards (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Total stock-based compensation | $566 | $327 |
Stockholders_Equity_and_StockB5
Stockholders' Equity and Stock-Based Compensation - Summary of Stock Option Awards (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Apr. 07, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Aggregate Intrinsic Value, Outstanding, Balance | ' | ' | $827 |
Options, Outstanding, Balance | ' | 285,900 | ' |
Options, Granted | 154,598 | ' | ' |
Options, Exercised | ' | ' | ' |
Options, Forfeited | ' | ' | ' |
Options, Outstanding, Balance | ' | 285,900 | 285,900 |
Options exercisable at March 31, 2014 | ' | 97,767 | ' |
Weighted Average Exercise Price, Outstanding, Balance | ' | $17.04 | ' |
Weighted Average Exercise Price, Granted | ' | ' | ' |
Weighted Average Exercise Price, Exercised | ' | ' | ' |
Weighted Average Exercise Price, Forfeited | ' | ' | ' |
Weighted Average Exercise Price, Outstanding, Balance | ' | $17.04 | $17.04 |
Weighted Average Exercise Price, Options exercisable at March 31, 2014 | ' | $17.11 | ' |
Weighted Average Remaining Contractual Life, Outstanding | ' | '8 years 9 months 18 days | '9 years 1 month 6 days |
Weighted Average Remaining Contractual Life, Options exercisable at March 31, 2014 | ' | '8 years 9 months 18 days | ' |
Aggregate Intrinsic Value, Granted | ' | ' | ' |
Aggregate Intrinsic Value, Exercised | ' | ' | ' |
Aggregate Intrinsic Value, Forfeited | ' | ' | ' |
Aggregate Intrinsic Value, Options exercisable at March 31, 2014 | ' | ' | ' |
Stockholders_Equity_and_StockB6
Stockholders' Equity and Stock-Based Compensation - Summary of Restricted Stock Units Relating to 2013 Incentive Plan (Detail) (USD $) | 0 Months Ended | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Apr. 07, 2014 | Mar. 31, 2014 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Nonvested Restricted Stock Units, Beginning Balance | ' | 145,517 |
Nonvested Restricted Stock Units, Granted | 217,839 | ' |
Nonvested Restricted Stock Units, Vested | ' | -51,598 |
Nonvested Restricted Stock Units, Forfeited | ' | -600 |
Nonvested Restricted Stock Units, Ending Balance | ' | 93,319 |
Weighted Average Grant Date Fair Value, Beginning Balance | ' | $17.68 |
Weighted Average Grant Date Fair Value, Granted | $16.17 | ' |
Weighted Average Grant Date Fair Value, Vested | ' | $17.81 |
Weighted Average Grant Date Fair Value, Forfeited | ' | $18.30 |
Weighted Average Grant Date Fair Value, Ending Balance | ' | $17.61 |
Aggregate Intrinsic Value, Beginning balance | ' | $2,900 |
Aggregate Intrinsic Value, Granted | ' | ' |
Aggregate Intrinsic Value, Vested | ' | ' |
Aggregate Intrinsic Value, Forfeited | ' | 10 |
Aggregate Intrinsic Value, Ending balance | ' | $1,515 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Deferred tax assets | $4,611 | ' | $4,611 |
Deferred tax assets, valuation allowance | ' | ' | ' |
Provision for income taxes | $3,147 | $73 | ' |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of reportable segments | 2 |
Segment_Information_Summary_of
Segment Information - Summary of Financial Information Relating to Reportable Segments (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Revenues | ' | ' | ' |
Total revenues | $72,812 | $23,857 | ' |
Total revenues | ' | 4,031 | ' |
Total revenues | 72,812 | 27,888 | ' |
Gross profit | ' | ' | ' |
Gross profit | 16,380 | 4,814 | ' |
Assets | ' | ' | ' |
Assets | 538,567 | ' | 506,035 |
Homebuilding [Member] | ' | ' | ' |
Revenues | ' | ' | ' |
Total revenues | 72,812 | 23,857 | ' |
Gross profit | ' | ' | ' |
Gross profit | 16,380 | 4,408 | ' |
Assets | ' | ' | ' |
Assets | 537,799 | ' | 505,174 |
Fee building [Member] | ' | ' | ' |
Revenues | ' | ' | ' |
Total revenues | ' | 4,031 | ' |
Gross profit | ' | ' | ' |
Gross profit | ' | 406 | ' |
Assets | ' | ' | ' |
Assets | $768 | ' | $861 |