Tri Pointe Homes, Inc. (NYSE: TPH) reported Q1 EPS of $0.28, $0.04 better than the analyst estimate of $0.24. Revenue for the quarter came in at $582.57 million versus the consensus estimate of $550.53 million.

Results and Operational Data for First Quarter 2018 and Comparisons to First Quarter 2017

• Net income available to common stockholders was $42.9 million, or $0.28 per diluted share, compared to $8.2 million, or $0.05 per diluted share
• New home orders of 1,496 compared to 1,299, an increase of 15%
• Active selling communities averaged 129.8 compared to 125.5, an increase of 3%— New home orders per average selling community were 11.5 orders (3.8 monthly) compared to 10.4 orders (3.5 monthly)— Cancellation rate remained flat at 14%
• Backlog units at quarter end of 2,143 homes compared to 1,734, an increase of 24%— Dollar value of backlog at quarter end of $1.4 billion compared to $1.0 billion, an increase of 39%— Average sales price in backlog at quarter end of $658,000 compared to $585,000, an increase of 12%
• Home sales revenue of $582.6 million compared to $392.0 million, an increase of 49%— New home deliveries of 924 homes compared to 758 homes, an increase of 22%— Average sales price of homes delivered of $630,000 compared to $517,000, an increase of 22%
• Homebuilding gross margin percentage of 22.7% compared to 18.8%, an increase of 390 basis points— Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 25.2%*
• SG&A expense as a percentage of homes sales revenue of 12.9% compared to 15.7%, a decrease of 280 basis points
• Ratios of debt-to-capital and net debt-to-net capital of 42.9% and 36.9%*, respectively, as of March 31, 2018
• Ended first quarter of 2018 with total liquidity of $917.2 million, including cash of $324.6 million and $592.6 million of availability under the Company's unsecured revolving credit facility* See "Reconciliation of Non-GAAP Financial Measures"

“2018 is off to a great start,” said TRI Pointe Group Chief Executive Officer Doug Bauer. “Earnings per share for the first quarter of 2018 grew more than five-fold on a year-over-year basis, thanks to significant increases in unit deliveries, average sales prices, and homebuilding gross margins. We saw strong demand throughout the quarter, as evidenced by our absorption rate of 3.8 homes per community per month. This demand was broad based, both from a geographic and segmentation standpoint, which enabled us to raise prices in several of our communities and helped offset cost pressures that the homebuilding industry has been facing. Our legacy assets in California continued to deliver strong results for our company, and I am pleased to report that all of our brands posted year-over-year homebuilding gross margin improvement. With excellent momentum on a number of fronts and a 39% increase to quarter-ending backlog on a dollar value basis, TRI Pointe Group is well positioned to achieve its goals in 2018.”

Outlook

For the second quarter of 2018, the Company expects to open 16 new communities, and close out of 19, resulting in 128 active selling communities as of June 30, 2018. In addition, the Company anticipates delivering 50% to 55% of its 2,143 units in backlog as of March 31, 2018 at an average sales price in a range of $620,000 to $630,000. The Company anticipates its homebuilding gross margin percentage will be in a range of 21.0% to 21.5% for the second quarter. Finally, the Company expects its SG&A expense as a percentage of home sales revenue to be in the range of 11.5% to 12.0% for the second quarter.

For the full year 2018, the Company is reiterating its original guidance of growing average selling communities by 5% compared to 2017 and delivering between 5,100 and 5,400 homes at an average sales price of approximately $610,000. The Company is updating its homebuilding gross margin percentage for the full year 2018 to be in the range of 21.0% to 21.5%, raising the low end of its previously stated range of 20.5% to 21.5%. The Company is reiterating its original guidance of SG&A expense as a percentage of home sales revenue to be in the range of 9.9% to 10.3% and its effective tax rate to be in the range of 25% to 26%.

For earnings history and earnings-related data on Tri Pointe Homes, Inc. (TPH) click here.