Tri Pointe Homes, Inc. (NYSE: TPH) reported Q4 EPS of $0.70, $0.05 better than the analyst estimate of $0.65. Revenue for the quarter came in at $1.12 billion versus the consensus estimate of $1.11 billion.

• Net income available to common stockholders was $99.4 million, or $0.70 per diluted share, compared to $74.0 million, or $0.49 per diluted share. In the fourth quarter of 2018, the Company recorded a charge relating to a $17.5 million settlement payment in connection with the settlement of a previously disclosed lawsuit involving a land sale that occurred in 1987 and transaction expenses of $686,000 related to the acquisition of a Dallas, Texas based homebuilder. Excluding these items, adjusted net income available to common stockholders was $112.9 million, or $0.79 per diluted share, for the fourth quarter of 2018.* In the fourth quarter of 2017, the Company recorded a $22.0 million tax charge related to the re-measurement of the Company’s net deferred tax assets as a result of the Tax Cuts and Jobs Act, as well as a pretax charge of $13.2 million related to the impairment of an investment in an unconsolidated entity. Excluding these items, adjusted net income available to common stockholders was $107.4 million, or $0.70 per diluted share, for the fourth quarter of 2017.*
• Home sales revenue for the quarter was flat at $1.1 billion• New home deliveries of 1,727 homes compared to 1,757 homes, a decrease of 2%• Average sales price of homes delivered of $649,000 compared to $639,000, an increase of 2%
• Homebuilding gross margin percentage of 21.9% compared to 21.7%, an increase of 20 basis points• Excluding interest, impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 24.8%*
• SG&A expense as a percentage of homes sales revenue of 9.1% compared to 7.2%, an increase of 190 basis points
• New home orders of 812 compared to 1,063, a decrease of 24%
• Active selling communities averaged 131.5 compared to 127.5, an increase of 3%• New home orders per average selling community decreased by 26% to 6.2 orders (2.1 monthly) compared to 8.3 orders (2.8 monthly)• Cancellation rate of 25% compared to 17%
• Backlog units at quarter end of 1,335 homes compared to 1,571, a decrease of 15%• Dollar value of backlog at quarter end of $897.3 million compared to $1.0 billion, a decrease of 13%• Average sales price in backlog at quarter end of $672,000 compared to $657,000, an increase of 2%
• Ratios of debt-to-capital and net debt-to-net capital of 40.7% and 35.5%*, respectively, as of December 31, 2018
• Ended fourth quarter of 2018 with total liquidity of $845.9 million, including cash of $277.7 million and $568.2 million of availability under the Company's unsecured revolving credit facility

“2018 was a record-setting year for TRI Pointe Group as we delivered over 5,000 homes for the first time in our company’s history and recorded net income in excess of $270 million,” said Doug Bauer, Chief Executive Officer of TRI Pointe Group. “We established a presence in two new markets - Dallas and the Carolinas - expanding our geographic reach and further diversifying our operations. We also generated over $300 million in cash from operations and ended the year in excellent financial shape with a net debt to net capital ratio of 35.5%.*”

Mr. Bauer continued, “2018 was also a year of two halves, as the strong sales momentum we experienced in the first part of the year dissipated in the back half of the year as buyers pulled back from the market in response to a rise in interest rates and higher home prices. While this recent market correction adds an element of uncertainty to our industry in the short-term, we remain encouraged about the outlook over the long-term thanks to the under supplied nature of our industry, strong demographics and job growth. We continue to stay focused on our long-term goals while also adjusting our business to remain competitive in the current environment. With a seasoned leadership team, well located communities and a strong balance sheet, we believe that TRI Pointe Group is well positioned for long-term success.”

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