TPH - Earnings call transcript Q2 2021

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

Operator

Greetings, and welcome to TRI Pointe Homes Second Quarter 2021 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, David Lee, General Counsel for TRI Pointe Homes. Thank you.

begin. may You

David Lee

these welcome and Earlier and results Pointe earnings tab. through Documents Homes the are slide Good at the available morning, to Events the call. www.tripointehomes.com detailing The XXXX. this quarter Investors financial including company conference a second deck link morning, the of TRI results, under released for Presentations its and

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

discussed Executive now Chief comparable Officer website be With call non-GAAP to are of this President; to company's on Officer; Doug reconciliations its Bauer, in and through Officer; most the the accessed Linda filings. Chief company's the Marketing SEC and Chief the financial call Doug. Additionally, Hosting turn will Operating the Mamet, company's call that, and the Mitchell, I Glenn Officer. today the can measures Tom TRI Keeler, measures Chief GAAP company's Financial Pointe's over

Douglas Bauer

the in exceeded quarter an and today. that guidance the navigating TRI operational to as quarter second home executing business for came delivered ASPs, $X quarter SG&A our persist as Thanks, of David, Earnings job our We Homes representing a and last increase of call excellent compared the industry. at XXX% share our to increases in did significant and per good joining gross Pointe posting challenges leverage margin teams our of plan, and year. revenues, year-over-year the morning to operating stated new homebuilding on the XXXX, results everyone orders. strong profits in second us

to future. demand environment to the of some far increases with are sensitivity foreseeable this place. demand. pleased markets, along outstrip of second over a we housing in available motivated range of for company. XXX improvement a brand supply with costs. results And averaged and orders price our quarter. point in order supply second we match while first half to these These for experienced to starts sign successful the believe month the quarter, in strategic similar and own rising broad-based positioning quarter efforts basis continue momentum We buyers believe efforts our during lifestyle And favorable The widespread gross operational to balance marketplace in quarter were second X.X the construction we XX.X% we our acknowledge and is activity of quarter to given the our the diverse generate extremely in price housing as our in to point the community and offset figure this we there second persist supply given that markets. we're per the initiatives position sales growth premium backlog, XXXX, We continued sales during satisfy today, terms of have We XXXX, was constrained the robust of with there margins into sizable to in is implement the lack remain that the a an all-time of our have saw we price demand quarter demand record XXXX for pricing excellent firm and proved by internal the that home and geography, able was per expect this a as will an of

homebuilder diverse before. more much new a is the Pointe than communities of the in than past in market segments home ever affordable more with TRI positioned addition, In

improving profile highlighted and on our have return quarterly continued our on bear several to focus calls has We now, fruit. focus this

to tangible base of absorption basis return point XX.X% of the The long-dated to a divisions California Our profits. asset at stood on a equity of the XXX company's of continue and profits end our communities California our percentage representing our strong outside the average company, quarter, our generate for paces at total improvement quarter while second as within trailing XX-month XXXX. continue over grow

have operations markets significantly levels and early-stage at average. are grown or profitability their achieving company many Our the above

doing agreements, in land investments these possible on and joint banking manner capital-efficient with in most markets an so emphasis ventures. and We make the continue option elsewhere, to lot

the Our returns SG&A history. expense ratio our Thanks second to of our and our operational by to improvements, continued by generate are revenue overhead efficiencies. evidenced with also we technology company's in were performance in expense in less our best in focus on more quarter, investments quarter able as the being the process enhanced X.X%

we next and And liquidity program XXXX ample for to our our Board shares, the the share to for an with earlier approved continue in year. additional leverage today, bringing our share share under buyback active low allowed X.X second Our million improve $XX to We shares million our million In total to repurchase X.X to capital have equity. plan deployed million quarter, just ratios has our we and on continue repurchased. return through us be repurchases $XXX program. announced repurchase

millennials, was demand Homes. in general XXXX Pointe of and due for an for supply. low extremely quarter recovery job a the especially excellent and home quarter healthy homebuilding TRI an growth standpoint activity in remains from historical post-pandemic Order ever-increasing second from The to

experiencing Homes of is record As TRI profitability. Pointe result, levels a

count, and TRI With a community our growing Pointe construction sales, more this X the for our This healthy XXXX. per normalized market delivery a great pace set to and in a creates Moving pace and level backdrop X a community up and is expect our is forward, towards trend optimizes sales which month, efficiencies significantly we and demand cadence per the business. to for healthy operations strong process. of homes

share Our these further same, each healthy in fronts strides to goal remainder positive our made over it position. second grow remains segments results at this details progress through the of our generate XX believe capital and a can turn like We Pointe and geographic in profitable quarter. we Glenn returns top the of the in maintaining TRI more With for a strong in each for I'd market manner, the while make year operations of on our and quarter beyond. that, to achieve

Glenn Keeler

posted and of then for third outlook and good Doug, remarks I'm our results Thanks, times, key on quarter. website. certain referring earnings will I At our Slide the expectations that our my deck deck highlights year to XXXX. and the metrics call slide from going of and provides to full our the operational of second with from highlight our be some quarter some and quarter for the financial and morning, finish information everyone. of second X financial is

performance had strong selling all absorption met absorption homes an metrics Doug and the prior quarter in We exceeded of per XX% West rate X.X%. or XXXX. a our an orders to quarter orders which in average an of We prior $X mentioned, with delivered the of reporting representing was Central to As was quarter an price an was our compared -- and strong reported up community East absorption year-over-year. increase X.X of second the the month, X% compared second key remained per with rate billion, month, Home geographies X X.X The increase demand the compared year. XX%. all increase homes year rate XX% to stated this a across up Demand of rate X,XXX homes, XX% was all And had of per sales $XXX,XXX a revenue an per outstanding and of the absorption community guidance. either and increase

high quarter end at XXX percentage XX.X%, which as margin point range year-over-year. our a in a home point gross came of of improvement at the the year. sales basis was homebuilding XXX to a prior revenue for expense X.X%, guidance basis Our SG&A the compared improvement percentage exceeded

expense operational quarter X.X% and taking conditions prior evident period. the well revenue excellence in current of the to as sales marketing the Our as in our X.X% home leveraging in focus and year of advantage second on is sales compared reduced technology market of

XX to new our pipeline continue on the community focus in communities second opened new and We quarter.

For the end and approximately communities XXX XX expect active selling open new full year XXX year, the between to we to communities.

guidance XX XXX had For XXX communities XXXX, open and average approximately previously communities. anticipated to selling We new on end we $XXX,XXX. expect XXXX prices of between approximately provided active year the selling in to

in we our prices of up As guidance all approximately increased to that revising are have $XXX,XXX. markets,

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

of consisting capital $XXX billion, Our credit resulting ended with total of our ratio ratio the net to a XX.X% net a and revolving facility. We available of of of to outstanding debt of hand was capital billion $X.X in and $X.X on unsecured $XXX of million under liquidity, cash XX.X%. quarter debt million debt

credit the both June of our out During term revolving facility facility extended loan and quarter, until we XXXX. our

is our XXXX. until As a result, maturity next not debt

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

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

the rate its company be effective tax the to for quarter Lastly, third expects XX%. approximately

sales $XXX,XXX year, to raising and full the we and average X,XXX between $XXX,XXX. expected are we to X,XXX anticipate delivering price homes, the of range For

our XX.X% We increasing full range for are XX.X% year. margin also the to homebuilding to gross

XX.X%. of the SG&A of expected home in Our percentage a range be continues expense revenue X.X% sales to and as

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

Douglas Bauer

operating that in implemented be offset thanks, our up, supply healthy Demand issues. with delivery our cost all quarter ability our execute as guidance, team's backlog our continues markets, Well, more inflation while second of records thanks we to margin, supply to our quarter. in extremely price We than Glenn. results this sum overcome company set deliveries, constrained. pleased income, performance chain value achieved the we to the and successfully and and for remained orders in are net To increases

in industry, have favorable the today about the low Given we term, backlog, on demographic the markets of home what we what and we supply. in remainder trends optimistic extremely bullish we are in remain XXXX. see given Longer our housing

'XX. company through the land of in cash strategy our brand sheet made, will returns balance generating double-digit through strong both the positioned count our benefit and trends lifestyle result have in from investments our We which premium these to careful have we cultivation a maintaining shareholders. while we We growth strong and growth 'XX and while achieve believe community positive can flows for

As a for bright. future result, TRI Pointe, we our of the remains industry, especially believe

a business. certification received as to Finally, and questions. team identifying company, a I extremely of is now to company that and is want life-changing they remarks. that the other. thank are is our take to a proud of in passionate that outstanding success. the for global the benchmark members you. customers each with its mission companies who place like the to of and the of talented is to committed we'd at to call values because concludes all culture recently hard-working prepared I'm It great deeply Pointe It's Thank TRI open TRI support be how important heart and of And our to gratifying care our Pointe's our part of work so our cultures. team of embody That being which them

Operator

Instructions]. [Operator

the with Stephen question of Kim first from Evercore. line Our comes

Stephen Kim

relates beyond expect market severity it we've this at as the Yes. complete? basically in of strong age it production. that curious of -- results. guess sales quarter something effectively to in restrictions, obviously for to to that mean, as your question or that, September sales that largely continue was many now. the is observing I do since which quarter? Or in curious match of I in first a the is to you your similar inventory months dynamic degree or similar is way, I my whether or a was second a goal feel rate to the restrictions I'm process the perhaps not you been

Douglas Bauer

through would quarter rest to the the of Yes, Doug. that continue I Yes, third Stephen, through year. probably this is the and expect

Stephen Kim

out say, somewhat you would And terms what be that, you laid production to If ability starts or at, be of with we starts, your you've your in able or it start fiscal respect starts? than let's about to what anticipate count ramping think community should to -- to homes, consistent be more growth with in the how your faring greater you 'XX? for your less increase with that are community your that 'XX? that count growth would be capability? example, Or for reasonable you do look Would in anticipate see growth we

Thomas Mitchell

Stephen, it That's growth. this very consistent would is expectation. our be Tom. with I community think count Yes, our

Stephen Kim

Okay. in sort sweet of you to sort words community. normal to about absorptions it environment. want being in Doug, I put characterized of then as though. talked believe more X of I mouth, that that, as kind think, And X don't sort you your of a almost the is spot. I per

XXXX drive you above expect community that something mix in make you anything you're about words, I is of to sort well guess you Or maybe do mix can question. this would X would now? -- one, of -- that? number is your because community a the X something be speaking would do per that So something like level And or were In basically like that is to that absorptions run I running I'm to curious generality? other that we -- at believe that that guess, obviously I about longer you is as that? higher-end just term there

Douglas Bauer

optimizes some Well, our and the significant the 'XX forecast. to that's our it paces pandemic-induced industry, is per community sweet creates inefficiencies which pandemic healthy and the been but spot created month. -- very you're per is obviously, level homes seeing X sales, our in It's And business always in efficiencies the And really of market. plan throughout X a deliveries been forecast operations, right now, construction a into going rapid beyond. absorption

a that's think we spot. yes, So sweet

Stephen Kim

Got mix? effect that's community to any from And your it. Is community you that going count something or be -- there

Douglas Bauer

No.

Stephen Kim

Okay.

you're there. because you Would what comment? that, absorptions it sound So your expect take in doesn't other saying a get plan you're just sort try that's that that's to business like basically down words, but to be to of any action specific at, fair that your level a runs back going

Douglas Bauer

That's correct.

Operator

comes next Patterson of Truman question with Research. from Our the Wolfe line

Truman Patterson

improve just So to of SG&A you. you gross the can mentioned across leveraging first, wanted margin technology I the release, In I'm both little reduce on you some the ask the Tom, and lines. elaborate hoping processes, initiatives bit to a costs. key

Thomas Mitchell

Yes.

and digital really We're company in facilitate our moving making are expansion margin a We that that some of strides and results in of from has significant eliminate the infrastructure both really gross through technology overhead possible we're seeing more been when environment, strong to that. historically business. our towards

Truman Patterson

be material But your more And open Will I more to they able fairly I'm seem get are discussions et right implies you which your of term suppliers? all in, I'm of you those to support intermediate which thinking suppliers. right? starts. XX% that expanding capacity, expecting had level Got Okay. all higher you. XXXX, growth? products into cetera? with are thinking really they that handful XX% constrained from communities whenever about shortages depending and guess, Are you're material a year-over-year, market on have actually There

Douglas Bauer

is put Doug. together guidance current that, environment. this incorporated we like chain we've Truman, already the supply When

Truman Patterson

Perfect. All right.

Douglas Bauer

yes. So,

So that's what I team doing. strong mean, be a should management

Truman Patterson

Fair enough.

Operator

Our line the Rygiel comes question with of B. from Riley. next Alex

Alexander Rygiel

XXXX? from us but questions gross could early any know gross think it -- lot understand help or should know dynamics getting not increasing We're you margins think margins to with us Very the here, and of gross about of guidance, lot to nice how of you're can give they investors decreasing in getting I I as affect it's a we're and that going margins in some you to regards specific either questions quarter. XXXX? a with about

Glenn Keeler

Glenn. Sure. Thanks, Alex. This is

our a I into the increase been think in the for pricing margin in in we'll our strong setup power backlog. -- going of for be 'XX going by our with is we're as guide 'XX because 'XX a evidenced There's year. into lot healthy margins

And into communities. so 'XX. opening setup XX we're That it new strong a said, is

when there's a communities you that. happens So that mix there. like new open

'XX, a margins, margins. setup there of impact for it's haven't is a And mix communities for strong obviously guidance to going that be so we but given but

Alexander Rygiel

gross about referenced a of to Can you bracket that the And of or are digital help that on sort not of the that could a inside earlier of you sort the of And the there in permanent are sort your environment has step-up or margins, permanently whether digital right movement into then gross us lifted environment. us same now sort other into gross margins? changing margin? topic things business you think movement give

Douglas Bauer

there's This a margin that is of and operating mean of digital the Alex. Doug, gross environment margin. couple affects I Yes, aspects

On side, to options for digital as it's our impact, has that to choice a premium consumers we premium a the platform -- builder. the continue significant offering America's be growth have and we brand

as pretax far buying CMO, on in can Mamet, Linda As numbers current talk efficiencies that's hours well. reflective our the our But it. journey been digital in margin, there's homes. SG&A significant for in as customer

two are our the those So the digital impacts business. ways environment that

Operator

Our with Markets. of line Janney next Capital Tyler the comes Batory from question

Tyler Batory

First you through perhaps how question in I little have, July quarter talk bit traffic demand interested and about as trended if and and those well. more the could a

a of are demand results is good give impacting I a you're if be positive, else as buyer and more or up bit concerned that volatile, on maybe out in being of thus and terms certainly seasonality and can well. little quite to concern grounds put little the detail folks bit seeing what far you a with the bit interested a little perhaps And really you commentary your might think just respect the traffic but something demand that perhaps about there's there demand. some or lot price being clearly, choppy,

Douglas Bauer

X.X we weakness demand, remains the feel thought for don't per and Demand orders we And for mentioned community a the see where any frankly, we're the is market the order change is, above to which quarter earlier, to very through. think sweet is everybody all the company spot year-over-year been per we've We What's pandemic, releases. month strong. a and in I continue comparing process industry causing restraining is as that demand. sales never Yes.

easy. math. cyclical the to sales end community we when and is into for new these There's releases year, homes to demand in to earlier, the sell the through of pure you not I our pretty of math continue year. the a restrain see monitor the 'XX, And of So there, XXXX just through rapidly you it's all is We'll sales see 'XX, of coming this it end counts downturn here, many and the continue as mentioned communities. rest and

Tyler Batory

Okay. Excellent. perhaps talk you commentary more took how you now, price a the environment price to about right bit. outlook quite a Can XXXX, you're up talk up. follow thinking And just that about And then about affordability? little the for on bit

little if can that more is there's that mix shifts interested some how a are talk there you So about going market maybe well? as of driven bit on or much

Glenn Keeler

one. it's that year price year covering mainly power raise to cost pricing our take for the just we've is have increases with for full increases. able the guidance been the pricing guidance The selling I'll in full Tyler, Glenn. the price this -- year the and

really nothing more with price to mix. just So that do It's increase.

Tyler Batory

more I one, then if And could. Okay. quick one

to that We've trend seen timelines even those then are an those other the XXXX in or a extended little versus more issue first or even or of get more. quarter. markets but how having geographies, did how quarter times, cycle others? than about is talked You bit the trending specific And versus

Thomas Mitchell

take is Tom. that Tyler, this one. Yes, I'll

across year XX% it's cycle and markets. seen of have fairly We about uniform to our all XX% increase this times

issues. deliver don't supply by material target of markets XX% All and our we volumes general been our year. impacted labor, to have that shortages for see But our to really limiting XX% again, chain ability this

Operator

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

Jay McCanless

at field to with that? And or see we'll in terms in tick you these question from what back the are when down, prices staying The margin do first hit hearing think levels? you lumber of finally I prices had starting the I gross maximum guess, lumber seeing

Douglas Bauer

next then Jay, continues and materials savings. stayed have lumber down some some citing gone, improvement margin the from next the year But third to fall, quarter lumber this year about dimensional cost XX% -- and of year that you some pretty starts think you, the Doug. delivered still because seen in it second will relief. going is I improvement it get into those you'll XX%. We've be EWP think seen now to and healthy. it, some the going also And But but this drop the to going that in of you're other quarter OSB there's you're end quarter. other has And to have trust actually I to see offset trades some first really the first quarter pricing have it in in as first of

Jay McCanless

the question any then for far had, the just Okay. I Great. or third traffic, And second commentary so seeing orders you're what July quarter? around

Douglas Bauer

sales Very continuing monitor releases chain. supply the seasonal, throughout our very to very to marketplace strong demand due normal. is the We're

Operator

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

Michael Dahl

Doug, down that it look already X the color side, to the I'm so June sorry in at like sales to per if I the look on obviously the does come around did far. beat impressive pace, horse quarter, we demand month. your but appreciate

per X think, off and this -- for should already we others should be that back so far would So that of to was already then, to question or few call? June tend quarter? X-part at price kind to you seasonally, using part alluded incremental the of that implemented slow sensitivity little half was that the a in I the be, piggybacking Or we the month, the we constraints from that that really if you X a supply earlier second versus early a there, I in the guess year? was or And seasonality were is

Douglas Bauer

seasonality rest a the We out there's in continue pace post-pandemic to that restrain world. that industry. of sales which of releases, And like some coming the definitely has absorption affected

Glenn Keeler

normal at X.X. And cadence, X.X. April. of at right was on at we year. expect to And that back we're then for the the you're in June, forward, And X X X.X normalized May for going half Mike,

Michael Dahl

while, unprecedented related because year-on-year is but pandemic going does community to order it you follow-up still seems to year. progression with provided and that it the an standpoint, trends heading of for with the like just the ramp year, decent the And certainly into have, like margin it Okay. the next you're look through some produce first times, tough yes, the from change comparison is at going fairly guys, half the least a

So communities if could or X of X the pace community ramped that fair that of it steadily that is in think to is versus ramp? just and year, less 'XX normalization through kind pace more and in of timing to 'XX, units because plateau

Unidentified Company Representative

I based higher next think next of of timing see year, front more this communities you're to the normalized even levels back the half a in count. to communities year at we're that and year going orders market, the the talking absorption open the on of going about half based community on in we're

Operator

of from comes the with Zelman Alan question Ratner next Our line Associates. &

Alan Ratner

Really back of XX%. year to in that gave that up, track up just range growth be that seem in you of strong count the that Mike, Mike's Maybe largely about they're of Tom, congrats. to for to math just mean not XX%. on could it you call, be while comment question X kind absorptions like made next in X doing question there pace orders kind just I are going it because should continuing that your earlier starts if the think I a just to quarter, response community And would a

ground build want remains there get you inventory I'm if that just curious level X this at to case the like is about it? so that Or thinking demand -- just the just is I'm support goal have So to inventory? correctly, supply the -- on to to you the X in

Thomas Mitchell

we increase a profile are we've good Alan. demand And to capacity operational exactly, XX% sequentially the starts not the but relative to I we to Yes. would to maximize to track see. that. our it sure do in try that I'm going think that question, starts got a That's

Alan Ratner

Got it.

to So clarify I just mean, then. that

X month right is starting as normal per kind that the as you if okay with above longer you range start. level that term, as could So you're that? And view now homes you're X many to of

Glenn Keeler

I see, to what think of to right? what and homes we're we going can saying So now. as right that we start I many we our the from level saying as based is many as can trying have continue to all No. on our we're mean We now financials. spec are homes Tom business see demand right optimize is you don't

so maximize we're environment the just demand to that on we're cadence based And trying in.

Alan Ratner

Got it.

the because to construction? home of sales of certain has to sales those started you the business talk at just market. then Or your inflation benefit and your builders that get right little pace, on you appreciation like affecting business? I that given price start are to it's on sales to restricting the builders that the strong Okay. strategy talk looks are of in the We've of of Can really Maybe holding has spec where bit more differential a is point shift mix you seen point homes? you temporarily was from kind are was built not spec going about been when number obviously, sales, holding And until back a back model because the next. build the go they to order, how more versus now, visibility in but manage a margin predominantly certain different extra of you a And spec costs. about a mix order what

Douglas Bauer

California, same, doing building you're Margins throughout Alan. are it's we're country. And phase the -- when we restrict basically the sales, like

homes wonky. those your now known, the see release you because you're you And demand is still out. cost right continue them supply to so And -- process that pretty once in have still you and chain sell strong we

Glenn Keeler

to normal That's we of We'd like business X to our upgrades. because lot do a get add specs X sell options how our me like are let per to community. and back -- that. Alan, And we to we to run

that of process. sell So our front we like homes to the end in

do for spec So the to that some wise those it choice. also give we homes. have to we a have is consumers quick move-in inventory But chance think

And so that's what to. we're trying to back get

Operator

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

Carl Reichardt

'XX a at you two, percentage on change openings you to not of count of you and whether things: you sense 'XX can look store from or one, growth, purchased likely mix price X new kind When geographically pre-pandemic? the are much community about And point will a those you where what a communities that gross perspective now? be have land talk is the of or from basis on as do

Douglas Bauer

expansion is Carl, all was that regions land that, most the a price Doug. And country. all that almost the It's at in -- up actually of this East and mostly tied pre-pandemic. of Central

Carl Reichardt

terms any high up end? move towards And Doug, significant price there of end, any in Or low [indiscernible] is shift points,

Douglas Bauer

primarily and first plus It's move-up. entry-level

Thomas Mitchell

kind growth places Austin, Based markets, new Doug on like said, like those Dallas, that. like our Raleigh, of markets Charlotte,

Carl Reichardt

Okay. looking management anticipating, builder additional Alan's managing and the feeling how ability -- is hiring subcontractor to a add We both the level on the you're of And how putting but at are level about ramp by top sales division then that question, in at communities in the what stores but on given you trade at it's side, how the a folks know internally? large environment? people business, you've are just you got, for this tight the in staffing

Douglas Bauer

due have strong certified as and culture. Well, as to very a work, to team's work, tremendous great we were, a place noted, we we our

we people of TRI to and even great culture chain our is one that's us the this Pointe. to have of advantages the And the place tough to supply So ability talent recruitment, that and in attract a environment work. gives great

Operator

line Wells the from Raghavan of comes with question Fargo. next Our Deepa

Deepa Raghavan

the midpoint closings end like pretty a also at it's includes tracking It question, -- outlook. the strong That the low First range. QX it of year. QX at implies That implies full a for seems ramp.

is you keep upper visibility supply unchanged, low more curious, count mean community should tracking there end Just out the have pushing range? your range? enough to constraints chain but of the think are the delivery. full we of year I towards the about the the is Or that end all

think about unit to $XXX,XXX how delivery So to curious guide. your closing just $XXX,XXX

Glenn Keeler

you if a fourth obviously guidance quarter. full the quarter at the Deepa, ramp it's year look third the deliveries Yes, of Glenn. I compared is to in think

of lot the of is from that depend and But on quarter side, supply range the the supply we're able the as same a our the the pushing the competitors chain deliveries a well is of the how third And in quarter. to there's that. fourth the some to as lot chain be delivery going houses of in far navigate And to building year. boat half of back

or on range So will of the our getting supply of lower chain. to depend higher end the the the success

Deepa Raghavan

chain. Right Okay. still Got TBD, it supply depends just now, it's QX, the on but it.

lot for that general I your like better. follow-up curious a second call than that months And seems to changed I'm think tone the I'm feel My just looks just Doug on few be changed better, but better lot last did quarter. so to not what It tone thought dose last you're a a macro I and decent complaining, clear, tone, you the it previous Glenn, -- call, cautious feeling last from there perspective. is Okay. a your of was

Douglas Bauer

to that can look at industry. and the judge here not of of bullish are very our I'm that over but to a tapping average tone, of buying price buyers $XXX,XXX, demographic. the you, When on that tell over housing millennial the an at you demographics we're continue bullish, very be been buyers XX% I've into just just houses I represent Well,

to I the chain. very And pandemic comparing We've greatly supply a a rapid got more bullish in market. There road. to rhetoric the over out a It's overblown. to when company digit that's don't issue. We is we've tremendous here a we nature long But think X absorption term, the be years. the long-term next absorption, have over the bumps in growth, we're laid challenges years. it growth housing X always very, our demand a positioned world normalized some be around double next about the of in for count housing got will good XX going the to community

and -- here, -- great not we've So the got that's credit team team. to a

Deepa Raghavan

in. squeeze can I if one, final A Great.

the some operational to channels. talked You of

You challenges challenges. quarter? any the operational just Is in witness mentioned some persisting? more challenges Or did newer same that you the of

Douglas Bauer

same No, it's the challenges.

Operator

comes Research question of from Alex Center. with next line Our Barrón the Housing

Alex Barrón

of on guys homes is guys you And ahead first how get job Curious age quarter. homes question. letting production my guess and them? before share That's of the sell you could those curve the first Good kind the there if you more to many homes started. on starting intent was an side. question I by my

Douglas Bauer

chain. to count starts. as the a starting with now, always right continued we're We're ramp-up releases are we because increased we're to mentioned, demand. many can continuing to And as going with of structured then sales meet homes growth, as being community And order the I restrain that -- see supply pace of that

Thomas Mitchell

this Alex, Tom. is

environment As drastically we're not our month. spec normal to trying production we're definitely we're a to than But Glenn experiencing. demand Yes, our the in would and our procedures, our of possible. to that X love count operating to to community mentioned, anything different X levels we're doing our operating per increase per normal we match as normalized business capacity

Alex Barrón

the guess, sale actual last quarter. Got I've the it. pricing And in then seen the homes, I of and various on approaches,

So lotteries Are using first I'm offer. homes? list, you're best or and and or come, you or gets curious first Like, if you the are side managing guys wait the buy highest using? what guys how to switched have serve who pricing you

Douglas Bauer

use priority we a Alex, system.

Linda Mamet

is extremely for Alex, the Linda. is customer our to important of This long-term I'll think that health We that. the add business. experience

of said, prequalified. we our the with on Doug So customers invite our when they and as our prequalify order company, mortgage the of to affiliated timing sales we base

Operator

the Doug to back queue. questions to for further call closing like no are in hand Bauer remarks. There the over I'd

Douglas Bauer

and thank to team you the you, TRI Pointe. quarter. thank Well, at Great

next quarter. it. to Looking Appreciate to everyone talking we you. year, Thank to look have a forward and great

Operator

for Thank your This does you teleconference. participation. today's conclude

may time, have lines this You disconnect your wonderful and a day. at

Tri Pointe Homes (TPH) 22 Jul 212021 Q2 Earnings call transcript