TPH - Earnings call transcript Q2 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the TRI Pointe Group Second Quarter 2020 Earnings Conference Call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Officer. Executive Chief Bauer, Doug Thank you, sir.

You may begin.

Doug Bauer

these and call. Earlier morning, for Presentations second Documents tab, welcome under on slide its Relations to conference earnings the website detailing XXXX. of company's Group's are Pointe quarter including today, the results a deck TRI financial Good results, the the Investor available released company www.tripointegroup.com. at

risks concerning on historical begins, remind performance statements company everyone differ statements statements important made to factors materially facts, undertakes operating update these I no of required not SEC that to in that are like uncertainties detailed as this results financial would call company's which are the that duty the to Before and actual call, discussion and and statements. are involve filings. future forward-looking and including uncertainties. certain the could law, forward-looking other Except cause risks A by

of of measures Glenn Linda your Hosting on some the Tom and of all families discuss thank as provide for quarter the today company's discussed outlook. company's joining non-GAAP for our and I SEC the we results and company's us ongoing company's filings. and with on initiatives the Additionally, accessed color measures Financial Officer; go and want Marketing XXXX, are Again, safe. website Chief all Officer its I the Mitchell, Chief Chief second you the today, Officer. to Mamet, strategic Pointe's to of you our is over myself well hope our be President; TRI can along Operating this financial and reconciliations GAAP Keeler, call comparable and most through

others. across who continue frontlines out to on the for safety own thoughts and the to to go care Our country gratitude risking their are those

the million many net homebuilding ago Pointe from of representing period. of improvement $XX.X year share, TRI continues the per $X.XX news and COVID-XX impact quarter to industry, income TRI or Group second is diluted there the generated in positive XXX% While, country, a within areas coming over Pointe.

impact a homes net related diluted was an earnings price $X.XX the considerable the maintaining significant did extinguishment digit of reduction revenue plan, result or delivering $XX.X double debt discipline. of and per as of million came margin early in as jump a and year-over-year Excluding income to share. our growth excellent costs of expansion, and job This workforce teams

activity increase in California California. improvement the This momentum factors this July the initial XX% then the We the order quarter believe the economy about has month up three of first COVID-XX for over with over improvement. Following gained with as brought net progressed, several to in year-over-year for June, steadily orders up by of including orders and driving year-over-year XX% shock a the momentum the a improved, XX%. weeks pandemic, continued there are into orders demand XX% month, culminating

evident secular family respondents at being buy respondents over First, the of is renters our in shift long locations, April, to a that of in COVID-XX become priority short long-term. said interest TRI a Americans. family of short-term for home high more more number in study According density from urban rise single people stems has owners. switch specifically increased pandemic or Pointe lasting Home exodus has created desire interest XX% conducted believe this rather Housing this potential that this This XX% a the inclined will are home many more demand change home. multifamily households a on the and of have as both renters consumer impact America study, in home Experts who phenomenon, them it made but behavior from benefit by ownership. We housing has an to ownership living a working heightened desire means home from any and the detached according type. to is industry, for housing And not will to space, Whether a single from

shifts These the have monetary that to industry's to strong important job were the pandemic inventory Second, and very industry the dynamics have to fundamentals supported today, housing results rates. cohorts, and from interest included prior for federal new These are and strong fiscal still and resiliency. but remember government. pandemic. the been historic and other These than fundamentals by growth, to here job growth age favorable all response both additionally very resale dynamics it homes by demographic is low demand contributed

homebuilding have, been time our are for has been in critically safety, to in the more feel advantage at trend. to Americans Third, continued this ideally a on design, emphasis comfort, has terms and the Pointe ever we are forefront driven at look TRI TRI at to this Pointe product pandemic than focus innovation premium new has of home factor our by willing Due livability a cater always to consumers flexibility differentiation. family’s and of take as and pay trend they and amenities sales suited and they of to pandemic success. result to lifestyles. more and of technology, strengths spending research led consumer believe offerings plays home features The are their a needs We home recent extensive design and home on our as their consistent Group’s another key the

product with affordable a pursue with respect to strategy of to more the on the segments balanced growing offerings, continue emphasis market. our a We

entry move in many while still address to level fact, increasing designed These sizes efficient and issues buyers. plans communities home floor of premium feature are communities affordability that In design. an exist first the cater markets, our lot through smaller number providing up that homes and to

California an in $XXX,XXX had Deliveries orders deliveries the XX% per more lower Austin, the supply from is shift of overall price price in our address percentage served has to is a $XXX,XXX. affordability standpoint, from longer California Sacramento, repositioned more part As a homes better our such affordable increasingly price the markets gradual larger offerings introduction had high priced and continued pace of and of as opportunities markets product us more base example, ASP from manner, an $XXX,XXX company's a time. our markets, give and inventory to of a and the state. generated and which where affordably This profile and less, the increasing of points and we challenges in cost will in land aims another between constrained, California, of XX% higher these have new communities transition is has better dated Year-to-date absorption in our expansion strategy geographic total, early profile our to-date will the through our month. diversify consistent This per as strategy, operations both California, make will will base for which increase less stage of growth X.X and into more terms. return well product community lead a believe up We and a over intensive Dallas this and to Carolinas. capital to us assets in or

And by implementation the levels. appointments efforts. setting pandemic our in are and virtually, million sales This anticipated $XX expenses an than up to to to we the traffic. had In our conducting and an our to would has In orders reduce through sharply on $XX quickly one-on-one overhead of return The sales commensurate has shift implement basis. businesses at and to this enabled us since anticipate this significantly to headcount do future million year, communities, to sales while consumers prior annualized model reduction, this and convert us a by area not of an shopping are advance expected rebounded May, the we're improve more in higher model. person from on had We home. chance existing a sales efforts of to our our becoming way a staffing already our decision from online pivot made which rate walk-in shelter-in-place future workforce operating of streamlined stemming invested looking also difficult the given technology. we a conduct we into at and social is increasingly distancing, impacts that These comfortable more reduction cuts pandemic of returns our Another business. a how

new X% online through a virtual quarter XX% our resulting time. second second the compared XX% a the orders of increase our XX% reduction despite were engagement grew quarter, compared team, in online that quarter. in the first same in to driven to Our first lease spend during and sales by appointments, net from with the advertising digital one-on-one quarter

these challenges summary, We of shift the the also number efficient sell sales of has in our much but that strong our be be and long a of to Thanks is created capabilities to this well-positioned balance COVID-XX online industry, very and lasting. our behavior will for consumer have enhanced pandemic new model way Pointe In a opportunities. this believe to number found homes sales TRI home sheet. unique opportunities to and make Group offerings, our most more

will to financial detail about over who to it and like provide results. Glenn, quarter more I'd our Now, the turn

Glenn Keeler

earlier. going some the began year with strong, XX%. orders on third from slide the and the my start were be May late referring of key finished good of overall with posted financial April that X quarter. our see second order significant certain the for financial COVID-XX full mentioned earnings an year-over-year. impacts I'll call then And as and At to the decline Doug. is Thanks, on provides quarter metrics finish the demand second in our to The of website, Slide to and of operational We morning, quarter the quarter, our of and increase orders our everyone. in for and from remarks deck, some outlook quarter resulting XX% only highlight expectations I'm times, of April highlights early our XXXX. down and results and month to information deck

June in cancellation driven second high rate for of segments. and from increase for and the month rate quarter of month The net Specifically, XX% XX% June. a of was X.X we company's went all year-over-year, XX%, a XXX month April June, in to broad a for month, was XX% order based of achieved the the to point new X.X homes in ago. month the our only The reporting orders, by down for absorption increase highest year across absorption per of compared an rates recording second was which was per home history, community the

sales quarter, was average which a to increase home. This during we delivered deliveries, homes an increase Turning home which an on price per year-over-year. resulted selling X,XXX XX% of $XXX,XXX the in million, year-over-year revenue $XXX of X% was

representing was strong percentage across in margin Our point all improvement year-over-year. dynamics. quarter homebuilding segments gross market percentage a reflective increase XXX basis XX.X%, the reporting for of margin was gross and The

our Doug the from of diluted in percentage $X.X was share, the California revenue the per leverage addition, of savings year-over-year, $XX as force SG&A that of of million expense from sales point assets prior home occurred compared severance in related Net year. the which long-term XXX the as to basis increase compared the charges. of In The was was gains result a mentioned income that from which reduction a during a million XXX% reduction the quarter revenue to was was force there the in and $X.XX year. higher increase percentage in prior resulted for improvement or earlier. an revenue quarter XX.X%,

million costs. the a $X.X extinguishment that of were in XXXX, of the during quarter, addition, In senior notes resulted $XXX refinanced early debt which million due portion company in the

Excluding the was these earnings per items, diluted for $X.XX quarter. share

second our the quarter closed Moving communities. selling XXX the to out communities XX company opened active the XX and communities, with selling new end quarter, to during on active of

depending would preserving opening and XXX For prudently our XXX. demand, COVID At count in approximately XX anticipate between the of new sheet focus the to and result year, range communities, in ending cash. remainder outset potentially active of on related communities. balance the of This XX shifted and the an closing the managing and orders, XX we stay-at-home community to order our

for certain new and for we spending future acquisition a communities. development As land result, communities paused

XX of pause, the the the back-half XXXX, restarted the new have of but from to approximately of those since opening XXXX. efforts, to communities We beginning moved due

option expect existing the Dallas We our owned in At a count lots, see year which and XX% continue growth of ramp to under and and we up XXXX, or Sacramento, community our as XX,XXX start XXXX to divisions more of communities XX% early in Carolinas. quarter approximately we markets, Austin, ago. end, controlled meaningful were grow versus

markets acquiring which solid today. lots We breakdown owned on capital Carolinas. like by to by reflected California strides have Texas will our more our A deliver of own in filed option will increasing our goal be be our made from Form homes assets, and XX-Q, and our detailed in continuing reducing efficient lots long-term of lots lots the later

Page In addition, the slide summary in there or by lots owned was on controlled of XX state a deck.

balance Looking at $X real we had sheet, at billion end approximately of estate the quarter inventory.

debt outstanding $X.X was of debt of XX.X%, billion, XX.X%. of capital resulting to debt capital net net total to and in Our a a ratio of ratio

XXXX. $XX due During pay the quarter, million used were million in million the $XXX redeemed $XXX $XXX were of The a due through company were to in down senior notes XXXX. in senior issued of tender notes notes in senior million The remaining that proceeds of our offer July.

$X.X debt of incurred an result million in July. this redemption, we additional costs a As of extinguishment

$XXX with of over our $XXX million generated cash credit in billion facility. positive company million from on available and cash liquidity, and quarter hand, ended of of operations, flow million the consisting the $XXX $X revolving under unsecured quarter, second the During

like year. for outlook the third full and to I'd summarize quarter our Now

there's impacts expected long-term the related its short While economy, on still on results. to guidance COVID-XX, uncertainty provide both and some our significant want potential to and we

third sales $XXX,XXX homes as to X,XXX gross $XXX,XXX. range price SG&A be revenue third range an and the margins at a the home for sales XX%, expected expected the delivering XX.X% to and to to the of is be of quarter XX.X% to between Homebuilding percentage is of the quarter. in in For XX% company of of X,XXX XXXX, anticipates average

the of effective to approximately to of XX%. third tax the XX% XXXX be range Lastly, company the for in expects rate quarter

of is For in year, a price the be home in Homebuilding X,XXX year to and margin as for X,XXX sales we of to an between XX%, delivering of full XX.X%. to the homes percentage of average our expected XX% revenue gross to $XXX,XXX and the SG&A XX% to the full anticipate $XXX,XXX. at sales is range expense while be expected range

of forecasting I be the in XX%. to is closing remarks. company the some tax XX% for rate the Finally, Doug turn to will now over effective back range its year full the to call for

Doug Bauer

preserve the conclusion, thanks were measures our Well, of protracted what performance particularly we of three Glenn. precautionary months ago, a to this capital with took I'm In quarter, slowdown. expectations in and when for our possibility light very pleased prepare

market dynamics new during the pandemic However, benefited market. the home have

us long-term Our well-positioned strategic positioning, both diversified short team and product for management offering, an has success. experienced

on environment uncertainties am able there disciplined to relative adapt as vigilant pandemic and with the our questions. second based prepared strategy the to economy. be we to your But how the capital, experience continue We remarks, the encounter and our to in to future. the the are we'd quarter, still on TRI and that succeed concludes now Pointe impact changing and its in Group many any my I has team's happy place were in confident may take we to challenges operating and discipline be right overcome and people, That

Operator

you. Thank

line comes and Zelman will Please your with Alan Our We question. proceed session. question of instructions] question-and-answer the Associates. from be now a [Operator first conducting with Ratner

Alan Ratner

Nice this navigating little time I crazy picked a seems question, little your doing in to I all a Obviously, is on through the your quarter. back-half up morning. for based on the the a if there's the bit orders glad hear first towards just here, It the guidance good well. of have parts job a but conservative closing on bit And moving you're of backlog My of just end could guys, year. Hey, here. right surface the now. lot know where quite dig

else availability products just of lower heading it's of like the are you any, lower your it what have? something Is into as Or XX. back-half those that of a guessing is guidance I trying than spec year, an normal into so current as lot would to rate normally get the is, guess far where past? spec I'm assuming conversion understanding in to what be than drive the the inventories? spec your really assuming deliveries is But much been compared to I'm supply, there So, of slipped

Glenn Keeler

had Hey, XXX, per XXX your roughly Glenn. quarter, to is specs. to finished We with which the quarter quarter only We start question start specs Alan, the specifically about good is This X.X and did question. speaking we the community.

a So pull we lot specs to into have this of don't year.

you're June lower conversion so because backlog And in 'XX. strong of the normal, being the those such of are those surface orders we all looks on are it's that, right a than had in and majority but -- delivered

So look that's the lower. why percentages

Alan Ratner

Got it.

you wait a if in as persists months? specs, see then new pace just taking Okay. on demand That's of few another have approach for of somewhat the the strategy speculative you strength to and And Or helpful. as starts? the are see accelerated here still far

Doug Bauer

is to We this take to pandemic tag everybody that kind companies the Alan, of a definitely a per all last looking -- the differently. pause on at Doug. view take one, specs for reacted run Since it time To did kind we Yes. to three our to normal, the spec. obviously, We and of community. starting reacted did question put to to days. roughly operations opened more XX a up conservative have that on five

So in There's the community it's entry are a spec level. demand And we driven level. nutshell, by community too. level. It's in level at tremendous our increasing

out how -- example, for Tom, on where Banning sold its First Beaumont days. in the XX what many XX -- the year-to-date, sorry, -- XX we've we've move homes I'm up pick XXX XX homes, sold in last in about that

very increasing strong appetite So in spec to those a markets, we've level. had

Alan Ratner

deliveries pricing? on could side, June on you've obviously Curious as you order on in back-half And what should July. given strong pricing far mixed of for if any, we you're just steps I more out point as It seems that. then margin, in the helpful, that? nuances the activity that there's like expecting would And the any of if want fairly the is from very impact taken really impact but and timing sure here just thank the be aware mixed I stable margins, year? any of wasn't if the That's just there add to one you

Tom Mitchell

to Alan. to overall. try demand This price, our we and Good encouraged really by morning, Tom. pace are manage is profile continue Obviously, balance we in but

product majority price have price. most to reduce been the either or and/or increase incentives And offerings, our the for able increase of so, part, we

by So we're trend. that encouraged

as an we always, our long dated As that have have assets mix do of price some deliver higher on those. impact legacy we

you the but nothing So of normal. that, be out aware of should

Doug Bauer

Doug. it's Alan,

my to sold on it's our And plan, Atwell amazing communities, days. last Banning. master no we of out comment in homes is Just clarify XX pretty This two statistics net XXX different than days. and is Elsinore, There XX We tremendous sold at from in other what you're all start Lake net demand hearing these sales communities the our in builders. $XXX,XXX. XX

obviously urgency sense for a definitely The pandemic first a entry has especially tremendous there's buyer. that demand. up created of level move So

Alan Ratner

It's to luck, great guys. Good hear.

Tom Mitchell

Thank you.

Operator

Thank you.

the of question. with from your Our Dahl Mike Capital line next Markets. comes question Please with proceed RBC

Mike Dahl

the taking Thanks nice Good and these months. morning. for last questions couple my to of rebound see

back guess -- sale extent But this mix a of May. type really run shift, model. rebuild think to lost I a feed lesser on absorption little pricing over was maybe is April business to really and good a I don't of -- question a kind bit Alan's it's some power. as to Just with you of machine the for business in in backlog go the the month that to your haven't even

of at run just acceleration power letting back-half there. you hot much so And And power. to pace color now? managing and you it How year, the look back little incremental for a terms pricing looking a really the that -- actively little of in are more pricing look versus going down, at as for how

Doug Bauer

Mike, this Well, and Doug. constantly is it's We're analyzing adjusting communities. approach. balanced a approach. all It's the a balanced

got just For example, about a lots a lot we've and we product there, of out were to we've of offer. got Banning, talking lot

political tremendous 'XX. just And say a continued up, we're building this just fiscal pace little running definitely that because backlog over towards issues, election year nice issue. stimulus issues, price test I price. pushing there's is the a a going of there's of pandemic So view reason also into scores wave pace that uncertainty going bit I into incremental into of feel an

that we're price less enough there's approach. And less So, out inventory going on runaway and unknowns where that there's there more so. continue to be a pushing push will and definitely have communities balanced

For be price example, there’ll push San Diego, down more in there. on down

backlog, election. said. by lot there's strong a project, I 'XX We'll I project yearend shape all but a encouraged unknowns, it's build am to after up So because could see as where this

Michael Dahl

Thanks. and Okay. community are the makes that same into sense a at your uncertainty you guess do it. I of count the have bit you land running lot time, Yes, a yearend, down given and behind

total second or I'm an have take why portfolio that's of maybe question been the as I any there. areas? So effectively market migration get buyers many in sticking taking example. in with Banning your more just your data and how on guess California, just to anecdotes in curious recent coastal just from Do Inland you versus in have buyers

Thomas Mitchell

to Yes. specifically, out, Tom. country people a remotely, provide to working opportunity the go attainable people the it is Nothing seeing relative little pricing. Mike, With does but throughout more further this that’s a pandemic. to the trend are get we happening

certainly, So but been nothing out of the extremely has that, of some normal. there

Michael Dahl

buyer months one into you if the mentioned were pandemic. the sneak of Doug, And one I mean, urgency last handful Okay. I a in. could

So a adjust time had think and need but standpoint, from about they obviously, it point. buyer and continues want to unfortunately some buyers what this at roll or to along

to in market, take any a actually be couple door, shift in buyers now and in the months? at willingness So more next of when of terms the the nine patients in and urgency months to there's you're kind a that's about a the in dynamic maybe hearing of out versus a delivery of six, looking or needing coming whether

Linda Mamet

the the as this home supply There’s with now definitely demand on they especially new is market, such that in an see high is Mike, buyers understanding levels Linda. Hi there market. resale low

personalize low can with to they home, So rates. want purchase want yes, they want, more we waiting their to and attain do what patient, they historically see be a also They to buyers home. but willing

children to factor home they're definitely private that's things adult living outdoor sales. interest cooking, in home things to-be-built so like prioritizing So out renewed space, home, technology, for like offices, returning a motivating

Michael Dahl

you. Thank Okay.

Doug Bauer

Thanks Mike.

Operator

next from Kim of the Please question. ISI. proceed Our question comes your Evercore with line with Stephen

Stephen Kim

rates things mentioned certainly, that ability think on with just the Yes. on lists, Thanks have pay And would that as they I benefit very the about you a that guys. for here things. people's to things the much so all that now actual lower those wish

that's So, were because about of when the you curious were encouraging. when scary. raising you I'm obviously, prices, Doug, started timing things talking in pretty April,

XX about back wondering so you mentioned talked I'm like sometime in speak. June. guess? say that mid in halt to kind things business, started prices the -- You raising earnest started maybe that to really a started maybe late And you you to days fair of kind would Is sort of But have quickly. Meritage yesterday, coming if of

Tom Mitchell

This Stephen. Tom. Hey, is

everyone needs year think I to remember started the strong. that off

we've been better activity. June, at guess models then pause, be price So, had the I'd started order constantly had really the would significant resurgence as back raise impact and took demand obviously, we've we to back the we as pandemic slowdown. prices where a we pick And prices year to that up, our very early raising then say the in a have. as earlier looking in And obviously, and started ability probably a and in began pricing

Doug Bauer

the then the sheltered going in recession? was we strong thinking, be the industry February, -- blah, Then lot come We out that around, were thing. Doug. people thing all this I the to and I Nobody of ultimate obvious out Is of early us just nobody's be is turn They're very missed mean, Nobody's right? what that saving Tom of traveling, was through housing it's blah, now and this money, is much. very place home think that's blah. staring asset. the depression one you most is to going Stephen, mean, bleak a March. other each going important And we those true. saying the fact logical, industries? most

momentum up, June, the start probably early start Sales going. want that latter in price And part a to so, start pricing pushing but we be momentum ramping pandemic, the start you communities, -- certain pushing going, of gets to that because June. during selling. And yes, see level later more may you gets

business So you're uncertain career. manage in very progression trying ever I've a had when your one times during the it's to logical most of my

think it sense. I all So, makes

Stephen Kim

that like I of to in going of you've be really was and of For was maybe of that that's gross on. then of quarter increase really July, reacceleration light XXXX. sure going in backlog your to that, until in turnover was then just a really token, -- pricing your guess a price trying flowing a from bulk it June sure. and sort below And I I with to see guide that that the late forward. here is make going And in the what We're in correct if was not kind margins XX% going in where sort kind ratio had by through third I the year really into the and same of

Glenn Keeler

Yes.

thinking you're about think I correct. that

Stephen Kim

Yes.

even about feels merchandising the provided interesting thinking. we case. intrigued, respect everybody I And homes given doing new we sort and really your your performance about try to way or and this you this that to give of what saw of It your this this third quarter we SG&A environment like like that in with be business. -- control to this revenue continue some quarter it customers SG&A, forced sort guidance, is And SG&A this really by of created is guidance, going we your your really comment way SG&A to interfacing was in really so, area but COVID heard, Doug, how kind going strong suggests this of this better hence, environment has outlook test test And really the that's when know an or beyond. With we've has increase should saw of I efficiency. think new your get

of tangible way now? things, some your so to are maybe resulting could if real marketing you about in And things like wondering able of really enumerate that we're digital the more see savings right specific that I'm homes, this

Linda Mamet

Stephen this is Linda.

at will believe there cost virtual think we play. sales online factors have longer-term, several do I are platform efficiencies. that over a the more Certainly,

lift With the pull high demand customers lower well. in already will are model short-term do still that on see advertising online savings buying But now. because a showing result home as been that and we're funnel time, resale we so back that high the and we low supply sales in on is in currently right to believe seeing middle in intent. over area have able focus spend brokers, We market, cost the

Glenn Keeler

this Stephen, Glenn. is And

of add that think to that is part seeing And you're reduction took. of basis I at Just flow systems. we're SG&A We've a really in on years, the And streamlined line starting little force operating technology office see the that invested in through the being couple focusing just over that. more the more last to we're efficient. that, other a and of including bit benefits back of to some we our

Tom Mitchell

merchandised will to versus the have be we access, of when Additionally, touring, maybe some ability fully self-guided about complex. mean, the be things capital a do to virtual Steve, think we the done virtually in and experience invested future our having to as to and more look amount able and unattended I some model

will we have but do to available, and We it models more efficiently. be able we'll out think

Stephen Kim

good. be lot, Thanks. it's a All but how see looking It'll things progress, those makes guys. sense. interesting to Thanks

Tom Mitchell

Stephen. Thanks,

Operator

Thank you.

next comes with the proceed your Truman question of Please with question. from Our Fargo. Wells Patterson line

Truman Patterson

Thanks question for and morning, Hi, taking good nice my guys. quarter.

your little from trying a and I'm on hit relative trends playing hoping, But growth order to May, July? rebound the the been understand Are out us? How versus in have which you this of starting just first, June, atypical just I areas seeing dissect quickly June. COVID to could trends, a the bit little those the to June areas underperforming for So in a basis which July outperformed as of current your some shutdowns? you relatively just order more some your relative and geographically? April harder Are are of how peers. is to July accelerated catch was trends and kind might up

Doug Bauer

the Truman, question. first mentioned entry very, lot seeing plan per we're It caller in the We're had But opened master in I a that's and good up move out of on market, in very Gilbert up Doug. We've Banning Waterston, seven. in also the to and a strong. a strength California of Chandlery really pace tremendous we've That's is lot the level a of in five its Beaumont. segments. a about feeling Yes. sales price growth X.X Phoenix in buyer. move week,

we've seen Phoenix. the effort, very broad last sales Tom, has four strongest order and think California It's all segments. I'd a it's But effort. in I in is across been in So, weeks based the say

Tom Mitchell

and just without to area doubt. a to Chandler as offered we've new it which the those Doug you is as our the geographically offerings trend. Yes, correlation much new order plans Truman, a But other product I higher July our the is the product have think introduced, have there's a that where receptivity so we offerings. new Gilbert in maybe in some Empire. Inland and talked driven, more Arizona, I giving about, mean, thing products seem not strong pace, specifically, master new absorption across board, well as

Truman Patterson

target needs new I something to form or some thanks. those study of Okay, today. the it like of COVID take buyer probably of really kind designs have

Linda Mamet

our to Yes, needs flexibility this plan to being adapt time. always Linda. We’ve easily at people's spaces those focused is able the designs, on within flow so

Truman Patterson

there's of Is COVID or guidance. anything early it of and in the shortages, the labor just closures, muni in Okay. top more Thanks know necessarily from situation from is closings? that closures is you understand COVID issues, somewhat out at from delays going Alan's but that. want some bit We on of bit any issues don't there come I muni year? for spec your some other of just a construction angle. it capping a how it your follow-up a the items? back-half on that's on out Is little question expecting play state back-half of the caution to were the But little different else And on spec closings and a to

Doug Bauer

Bay of Truman, essential, of working through And constrained. the issues Seattle, in April, mean, there were now remember, housing to XX parts right deemed of just its in particular, around generate lot shelter-in-place March area that. huge but pretty from orders. we we're Doug. volume But don't the mean, there heavy very in there areas. a was were compared that. I Yes, I end in is other

most I've homes Although, environment, under life. so build selling my was constrained But we the Seattle only could ever seen quickly. in them couldn't build or them

on I Tom let's it. the and tight So, number starting. of firm grip face specs we a And put I as very mentioned, mean, then,

foot the management time. when very gradually So all prudent in, factor that as some our a then pandemic managing And pedal. gas start on Maybe our our you you our your let or people viewed That's that way and working just off and the break you was we pushed cash pushing balance sheet. harder later. the it, and on we flow business how were at through earlier

Tom Mitchell

impact constraints, to relative jurisdictions, as are as various efficiencies significant we're We constraints still or any operating. chain Truman, relative Yes. not within labor supply global seeing well to that.

obstacle is So, an a to our I that hindrance or deliveries. wouldn't say

our and from Although, extended cycle times anywhere have to XX%. X% about schedules construction

to on is there there, Doug are think ability shorthanded. timing inspections obtain you factor different delays. said, municipalities have initial limited Glenn overall, So, that prepared putting starts in production certainly yearend back biggest for also seeing our more But I probably communities the that probably production delays permits some and that push and pause, The to relative like to approvals, some to are remarks, factor opening on up several the new in ramp completions. to that his ability spoke is

Truman Patterson

I Thank you. Okay. it. appreciate

Operator

you. Thank

McCanless proceed the of with your from comes Please with question. question Jay next Wedbush. Our line

Jay McCanless

was third the question. there It pretty the quarter rough now taking as on are into for move the during Thanks my like morning. guess I that Good What y'all you quarter. looks absorption Vegas. seeing market? first on

Tom Mitchell

its we that based Yes. a surprisingly, consumer. at entertainment kind return of looks have mean, encouraged so that is can But all We're gaming. imagine broad Jay, and you market and on Vegas. like what dependence seen Tom. this with from economy in I price segments

So, continue have June bright we positive for July, optimistic into through and and Vegas the trends so to a to going outlook market. continuing look

Doug Bauer

April some and X.X May X.X X.X were in in numbers and that, absorptions put To June. Jay, in on

up. to door. cost higher continue still it's ramp lot a a from next pulling And of the see California we consumers states, So, namely

casinos, that's a sure. they're -- you'll of as opening that's So, a the go into if California lot been see partially, you is there, for in

Jay McCanless

to more you level hear. expect And first your to move maybe to guess commentary the entry up. trying now? price next where is Pointe's I TRI great remind points Could, you be And to us then That's level, go lower about exposure affordable it two more years? entry to Doug, where over three

Doug Bauer

California long-term, at those pretty assets we're that's assets, been or and Inland on LA, able here are move XXX. the market is talked each we starting very starting then in in a And that reposition to those XXX, Empire, first the Well, we've to strong level right? Empire entry exposure -- very California, Inland most attractive much script. at in the which highlighted up of we below entry We've got relative to and you're a price. up -- level In in the

we've So, very, very got line-up. a strong

continue San that down which you look going level move growth move another driving price happen more especially have When premium the think when in up. at more Texas, though, called Meadowood, to the point. strong about kind going months, come on in Carolinas, We those east, community be first the of next you of up Colorado, will will the company entry also to it's Diego first that XX are all

see tremendous growth up the you're couple where there's the successful the of tied tremendous that that's now And pushing they're slowly the beginning of we growth. land All year, California. is years at And over east sellers. and being next the back brought on deals the with we those out had So, were system. to going to

dominant will still or But, level the be a about year entry California, is doing first probably and big premium here coming player X,XXX up. growth so. outside, We a in all deliveries that's move

Tom Mitchell

relative quarter, for of to came orders percentages the Jay, XX% from overall from now, move entry level, up. about about second right XX% Yes. our

seen numbers, category. in have we bit this of reduction a over in and slight last improvement luxury those just our overall a even So, year, a little

Doug Bauer

Phoenix while of But we started wherever. a to move as more overall lot kind back whether Jay, that that premium that spiked that a add, a affordable points still 'XX, price been would affordability pretty little experience. pricing markets strong providing And has bit. of you're recall, there's when issue less in I Colorado, rates affordable, when you brand made in

another and say, points, towards because price to lots, you oh very drove is affordable bps, now. offering, god, more business everybody because interest consumer gets acclimated detached very XXX all that falling, we're rates know up The the before going my spoiled is intentionally product go right when quickly. our attached, we So, smaller both sky

for So, being can be the in affordable price future. important points

Jay McCanless

Thanks It sounds great. again.

Operator

you. Thank

your Micenko comes with Please Our next line with question from Jack question. proceed the of SIG.

Jack Micenko

was these XXXX. count. I some I communities in -- new hoping I mentioned maybe year, potential you XXXX think broad morning. Good you to in think community online When talking next markets, about of pushed got think XX strokes start into by coming around I

the years, markets now with know been it fair out or we With might above below to mid-single-digit that assume the and community last sort we back growth the in coming for six averages it be five around that grower factors? assume is with you've that? well historical should a those missing is to what sort down fair historically, reduce component push there Or would uncertainty, back of ex-acquisitions. the is of be XXXX count new Looking for that a online, that

Glenn Keeler

'XX last specific get it But the few couple years. you're we community than over guidance, remarks, will obviously prepared No, like percentage as said growth count I in seen give in the it more you've you meaningful last at we'll has I a think count. been closer be regarding And community years. to than -- my see more there'll higher

Jack Micenko

point at of some new say How this much of can from markets? is that you the

Glenn Keeler

some then to A Dallas, good to end there's well. that's growth organic We're really Carolinas. there. going that's another Colorado, in the this we've another as markets three bit year got the growing of grow. Austin, going Carolinas, and area only to from with Sacramento just area our going. where in That's is grow it. existing communities and obviously going in We're

Jack Micenko

fairly Okay. share think How the in balance strategic And see do year? the earlier on the quarter, part context the even of you it forward to buying then of take growth. would about curious in up and business Just historically you stock about What in and capital. this the it of been now, through you to not take restart the if what maybe that? would maybe repurchases you've to,

Doug Bauer

a up, earnings, time the mentioned on returns building increased remarks inventory -- move in we're we equity by types leverage. premium we're to grow we and and first growth in I call and balance also turns, obviously, scale level same whether very driven, and our more company is focused, Jack, of affect and which that's levers manage And at are are those the focused going financial our time, sheet our entry higher increase focusing Yes. our what return growth on better that as our it's on returns. can the

handle stock lot growth a a forth. on and those mean, whether got use it's strong to very very, all those available through acquisition, to right We've returns, that. move all at and looking to so be and us. liquidity so are levers we'll also I and sheet So enhancing balance forward with buyback financial our of the

Jack Micenko

Okay. All Thanks. right.

Doug Bauer

Thanks.

Operator

Thank you.

question proceed Our from next with the of line with Carl comes question. Reichardt BTIG. Please your

Carl Reichardt

thinking on or multiple brand strategy advancements all? maybe efficient? at questions. that to still my cost if multiple to time single are Jay the idea a But be to effective, that long be more strategy. might things here. you important brand It's Doug, you about I walk back your has you've more the to the national about to brand The a changed Actually, guys. that continue just enhancements It's Can got go you through Or talked over wanted for builder, ask, there Hi, Thanks. all? guys. as

Doug Bauer

When for especially with very today us. Well, over I argued the Texas earned brand time. think strategy as I always is consumer, maker the well into very, brand and it still well. go I've the multiple resonates brand you sits bodes mean, is trend

down by strong to it having the continue to the place land, subcontractors, any you acceptance by really attract Obviously, comes that culture we brand relationships to of buying, can some comes in it whether the so, when it's people. execute, And sort have see consumer. strategy, to and people

So we're in happy it be of best can big focused either But small. the and still on and format. done

Tom Mitchell

some look as for become efficient we may of some Look more and to overall be then in services. regionalization we as look opportunities us would ways some our at to Carl, at at do economies to continue add, there improve streamline it. relative we to our and to home strategies effective I business, And look office maybe shared

Carl Reichardt

there, California's And Tom. growth bit a little share markets. your talked about Thanks, in importance, then new you

assume it normalized you Or take get a spread you market. to several As I'm now out to have through are geographic reinvest still will we a that panoply Thanks you kind be years, let's just years California? base Are asset that and better expecting in trying 'XX, of next more? from look the what guys. sense it three like? looks little California your get a five things in legacy out of as sell assets there, a relatively the the half you to thinking cash,

Glenn Keeler

Hey, Glenn. Good is Carl. question. This

look if large, need markets that in. -- have supply of California, by because convert a obviously, we And U.S. work there you that But just throughout of to will investing we long-term assets within more and those to don't outside you a we're see as cash, California, overall to you'll our cash a supply of more to think still are invest that balanced those at we've California the lot lots. certain through lot I those those see because such more and supply shift long-term had lots

Carl Reichardt

Thanks, Glenn. guys. Thanks,

Operator

Thank you.

the of session. question-and-answer back for to the our Bauer call reached any I'd over have to Mr. We remarks. end like closing turn

Doug Bauer

talking and look we to I you safe healthy. you Well, to I very want Thank hope And thank next quarter. and stay to everyone everyone, of forward all much.

Operator

teleconference. today's concludes This you. Thank

at time. have wonderful You your you participation. may for lines disconnect And a Thank your day. this

Tri Pointe Homes (TPH) 24 Jul 202020 Q2 Earnings call transcript