2015 fourth quarter and full year results...2015 fourth quarter highlights 6 (1) see...

2015 Fourth Quarter and Full Year ResultsMaracay Homes – Pardee Homes – Quadrant Homes – Trendmaker Homes – TRI Pointe Homes – Winchester Homes

Forward Looking Statement

Various statements contained in this presentation, including those that express a belief, expectation or intention, as well asthose that are not statements of historical fact, are forward-looking statements. These forward-looking statements may includeprojections and estimates concerning the timing and success of specific projects and our future production, operational and financial results, financial condition, prospects, and capital spending. Our forward-looking statements are generally accompanied by words such as “estimate,” “project,” “predict,” “believe,” “expect,” “intend,” “anticipate,” “potential,” “plan,” “goal,” “will,” or other words that convey future events or outcomes. The forward-looking statements in this presentation speak only as of the date of this presentation, and we disclaim any obligation to update these statements unless required by law, and we caution you not to rely on them unduly. These forward-looking statements are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. The following factors, among others, may cause our actual results, performance or achievements to differmaterially from any future results, performance or achievements expressed or implied by these forward-looking statements: theeffect of general economic conditions, including employment rates, housing starts, interest rate levels, availability of financingfor home mortgages and strength of the U.S. dollar; market demand for our products, which is related to the strength of thevarious U.S. business segments and U.S. and international economic conditions; levels of competition; the successfulexecution of our internal performance plans, including restructuring and cost reduction initiatives; global economic conditions;raw material prices; energy prices; the effect of weather; the risk of loss from earthquakes, volcanoes, fires, floods, droughts,windstorms, hurricanes, pest infestations and other natural disasters; transportation costs; federal and state tax policies; theeffect of land use, environment and other governmental regulations; legal proceedings; risks relating to any unforeseenchanges to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, synergies, indebtedness,financial condition, losses and future prospects; changes in accounting principles; our relationship, and actual and potential conflicts of interest, with Starwood Capital Group or its affiliates; and additional factors discussed under the sections captioned “Risk Factors” included in our annual and quarterly reports filed with the Securities and Exchange Commission. The foregoing list is not exhaustive. New risk factors may emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risk factors on our business.

Management Team

3

Michael GrubbsChief Financial Officer

• Over 25 years of real estate and homebuilding experience

• Former SVP / CFO of William Lyon Homes

• Previously, real estate accountant at Kenneth Leventhal

Douglas BauerChief Executive Officer


• Former President and COO of William Lyon Homes, and previously, managed Northern California Division

Thomas Mitchell President & COO


• Former EVP and Southern California Regional President at William Lyon Homes

Working together for over 20 years, TRI Pointe senior management has significant experience running a large, geographically diverse, growth-oriented public homebuilder. Deep managerial talent at each operating division with key local relationships supports dynamic tailored growth strategies.

A Family of Regional Homebuilders

A Family of Regional Homebuilders

LTM Orders: 4,181 LTM Deliveries: 4,057

LTM Home Sales (“HS”) Revenue: $2,291,264 LTM Average Sales Price (“ASP”): $565

Lots Owned or Controlled: 27,602 3-Year Goal: 5,100 – 5,400 Deliveries

Market: Greater Puget Sound Area2015 Orders: 441 2015 Deliveries: 4112015 HS Revenue: $180,772 2015 ASP: $440Lots Owned or Controlled: 1,2743-Year Goal: 400 Deliveries

Markets: Los Angeles/Ventura, Inland Empire, San Diego, Las Vegas2015 Orders: 1,186 2015 Deliveries: 1,1302015 HS Revenue: $606,161 2015 ASP: $536Lots Owned or Controlled: 16,6793-Year Goal: 1,400 – 1,500 Deliveries

Markets: Orange County, Los Angeles, San Diego, San Francisco Bay Area, Denver2015 Orders: 1,107 2015 Deliveries: 1,0602015 HS Revenue: $774,005 2015 ASP:$730Lots Owned or Controlled: 3,6283-Year Goal: 1,400 – 1,550 Deliveries

Markets: Phoenix, Tucson2015 Orders: 578 2015 Deliveries: 4802015 HS Revenue: $185,645 2015 ASP: $387Lots Owned or Controlled: 1,8113-Year Goal: 700 Deliveries

Markets: Houston, Austin2015 Orders: 457 2015 Deliveries: 5392015 HS Revenue: $275,6582015 ASP: $511Lots Owned or Controlled: 1,8583- Year Goal: 700 – 750 Deliveries

Markets: Washington DC, Richmond2015 Orders: 4122015 Deliveries: 4372015 HS Revenue: $269,023 2015 ASP: $616Lots Owned or Controlled: 2,3523-Year Goal: 500 Deliveries

Data as of December 31, 2015Note: Dollars in thousands

2015 Fourth Quarter Highlights

2015 Fourth Quarter Highlights

6

(1) See “Reconciliation of Non-GAAP Financial Measures” in the appendix of the presentation.

FOURTH QUARTER HIGHLIGHTS AND COMPARISONS TO FOURTH QUARTER 2014

• New home orders increased 5% to 753

• New home deliveries up 30% to 1,453 with increased average sales price to $583K

• Home sales revenue up 36% to $847.4M

• Homebuilding gross margin of 22.2%

• Adjusted homebuilding gross margin of 24.2%(1)

• SG&A expense improved to 8.4% of home sales revenue compared to 8.9%

• Net income $85.1M; $0.52 per diluted share vs. $41.4M; $0.26 per diluted share

Arizona13%

California29%

Maryland7%

Nevada9%

Colorado5%

Texas20%

Virginia7%

Washington10%

Active Selling Communities and Absorption Rate

7

108104

2.252.23

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0

20

40

60

80

100

120

2014 2015

Communities Absorption Rate

Active Selling Communities and Absorption RateAs of and for the quarters ended December 31, 2014 and 2015

Communities by StateAs of December 31, 2015

Opened 44 new communities and closed 48 in 2015

De

cre

ase

4%

YO

Y

Arizona11%

California38%

Maryland9%

Nevada12%

Colorado3%

Texas10%

Virginia5%

Washington12%

New Home Orders – Fourth Quarter Results

8

714753

0

100

200

300

400

500

600

700

800

900

1,000

2014 2015

Incr

eas

e 5

% Y

OY

Fourth Quarter - New Home OrdersFor the quarters ended December 31, 2014 and 2015

Orders by StateFor the quarter ended December 31, 2015

Arizona12%

California45%

Maryland6%

Nevada9%

Colorado5%

Texas10%

Virginia5%

Washington8%

New Home Deliveries – Fourth Quarter Results

9

Deliveries by StateFor the quarter ended December 31, 2015

Fourth Quarter – New Home DeliveriesAs of and for the quarters ended December 31, 2014 and 2015

1,122

1,453

0

200

400

600

800

1,000

1,200

1,400

1,600

2014 2015

$555K $583KAverage Sales Price of Deliveries

Incr

eas

e 3

0%

YO

Y

Arizona12%

California46%

Maryland7%

Nevada4%

Colorado6%

Texas11%

Virginia4%

Washington10%

Backlog – Units and Dollar Value (“GAAP”)

10

Backlog – Units and Dollar ValueAs of December 31, 2014 and 2015 (dollars in thousands)

Dollar Value by StateAs of December 31, 2015

1,032

1,156

0

200

400

600

800

1,000

1,200

1,400

Units

$653,096 $697,334

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$ Value

2014

2015

$633K $603KAverage Sales Price

in Backlog

Incr

eas

e 1

2%

YO

Y

Incr

eas

e 7

% Y

OY

Arizona8%

California55%

Maryland5%

Nevada6%

Colorado4%

Texas9%

Virginia7%

Washington6%

Home Sales Revenue – Fourth Quarter Results

11

$622,962

$847,409

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

2014 2015

Fourth Quarter – Home Sales RevenueFor the quarters ended December 31, 2014 and 2015 (dollars in thousands)

Home Sales Revenue by StateFor the quarter ended December 31, 2015

$555K $583KAverage Sales Price of Deliveries

Incr

eas

e 3

6%

YO

Y

2015 Full Year Highlights

2015 Full Year Highlights

13

(1) See “Reconciliation of Non-GAAP Financial Measures” in the appendix of the presentation.(2) The term “Adjusted” includes GAAP results plus legacy TRI Pointe operations for periods prior to July 7, 2014, the closing date of the WRECO transaction.

FULL YEAR HIGHLIGHTS AND COMPARISONS TO FULL YEAR 2014

• New home orders increased 42% to 4,181

• New home deliveries up 31% to 4,057 with increased average sales price to $565K

• Home sales revenue up 39% to $2.3 billion

• Homebuilding gross margin of 21.1%

• Adjusted homebuilding gross margin of 23.1%(1)

• SG&A expense improved to 10.2% of home sales revenue compared to 11.3%

• Net income $205.5M; $1.27 per diluted share vs. $84.2M; $0.58 per diluted share

FULL YEAR HIGHLIGHTS AND COMPARISONS TO FULL YEAR 2014 – “Adjusted”(1)(2)

• New home orders increased 27% to 4,181

• New home deliveries up 23% to 4,057

• Home sales revenue up 27% to $2.3 billion

Arizona14%

California41%

Maryland6%

Nevada9%

Colorado5%

Texas11%

Virginia4%

Washington10%

New Home Orders – Full Year Results

14

2,947

4,181

3,283

4,181

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2014 2015

GAAP

Adjusted

Full Year - New Home OrdersFor the years ended December 31, 2014 and 2015 – on an adjusted basis (1)

(1) Includes legacy TRI Pointe operations for the periods prior to July 7, 2014, the closing date of the WRECO transaction. See “Reconciliation of Non-GAAP Financial Measures” in the appendix of this presentation.

Orders by StateFor the year ended December 31, 2015

Incr

eas

e 4

2%

YO

Y

Incr

eas

e 2

7%

YO

Y

Arizona12%

California40%

Maryland5%

Nevada9%

Colorado5%

Texas13%

Virginia6%

Washington10%

New Home Deliveries – Full Year Results

15

Deliveries by StateFor the year ended December 31, 2015


Full Year – New Home DeliveriesFor the years ended December 31, 2014 and 2015 – on an adjusted basis (1)

3,100

4,057

3,297

4,057

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2014 2015

GAAP

Adjusted

Incr

eas

e 3

1%

YO

Y

Incr

eas

e 2

3%

YO

Y

Arizona8%

California50%

Maryland5%

Nevada6%

Colorado4%

Texas12%

Virginia7%

Washington8%

Home Sales Revenue – Full Year Results

16

$1,646,274

$2,291,264

$1,808,381

$2,291,264

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

2014 2015

GAAP

Adjusted

Full Year– Home Sales RevenueFor the years ended December 31, 2014 and 2015 – on an adjusted basis (1)

(dollars in thousands)

Home Sales Revenue by StateFor the year ended December 31, 2015

$531K $548K $565K $565KAverage Sales Price of Deliveries

Incr

eas

e 3

9%

YO

Y

Incr

eas

e 2

7%

YO

Y

(1) Includes legacy TRI Pointe operations for the periods prior to July 7, 2014, the closing date of the WRECO transaction. See “Reconciliation of Non-GAAP Financial Measures” in the appendix of this presentation

California59%

Washington6%

Texas3%

Maryland32%

Land and Lot Sales Revenue – Full Year Results

17

$47,660

$101,284

$9,754

$66,196

$0

$25,000

$50,000

$75,000

$100,000

$125,000

2014 2015

Revenue

Gross Profit

Land and Lot Sales Revenue and Gross ProfitFor the years ended December 31, 2014 and 2015(dollars in thousands)

Land and Lot Sales Revenue by StateFor the year ended December 31, 2015

Incr

eas

e 1

13

% Y

OY

Incr

eas

e 5

79

% Y

OY

Orders, Deliveries and Absorption Rate year over year comparisons for the Fourth Quarter and Full Year 2015 by Segment

(Includes breakout by state for Pardee Homes and TRI Pointe Homes brands)

7283

110

173

1.5

1.8

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0

20

40

60

80

100

120

140

160

180

200

4Q14 4Q15Orders Deliveries Absorption

Orders, Deliveries and Absorption RateFor the quarters ended December 31, 2014 and 2015

4Q14 4Q15$392K $399KAverage Sales Price of Deliveries

19

Orders, Deliveries and Absorption RateFor the years ended December 31, 2014 and 2015

385

578

396

480

2.0

2.9

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0

100

200

300

400

500

600

700

FY14 FY15Orders Deliveries Absorption

FY14 FY15$381K $387KAverage Sales Price of Deliveries

Incr

eas

e 5

7%

YO

Y

Incr

eas

e 1

4%

YO

Y

Incr

eas

e 2

1%

YO

Y

Incr

eas

e 5

0%

YO

Y

48

94

112

136

1.8

2.9

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0

20

40

60

80

100

120

140

160



Nevada

20



276

394

280

374

3.0 3.2

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0

50

100

150

200

250

300

350

400

450



Incr

eas

e 2

1%

YO

Y

Incr

eas

e 9

6%

YO

Y

Incr

eas

e 3

4%

YO

Y

Incr

eas

e 4

3%

YO

Y

129138

262 270

3.73.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

0

50

100

150

200

250

300



21



694

792

752756

4.65.2

0.0

1.0

2.0

3.0

4.0

5.0

6.0

640

660

680

700

720

740

760

780

800


FY14 FY15$512K $620K

Average Sales Price of Deliveries

California

Incr

eas

e 7

% Y

OY

Incr

eas

e 3

% Y

OY

Incr

eas

e 1

4%

YO

Y

Incr

eas

e 1

% Y

OY

51

88

101

114

1.7

2.8

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0

20

40

60

80

100

120



22



337

441

320

411

2.3

3.4

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0

50

100

150

200

250

300

350

400

450

500



Incr

eas

e 7

3%

YO

Y

Incr

eas

e 1

3%

YO

Y

Incr

eas

e 3

1%

YO

Y

Incr

eas

e 2

8%

YO

Y

121

76

157

145

1.6

1.1

0.0

0.5

1.0

1.5

2.0

2.5

0

20

40

60

80

100

120

140

160

180

200



23


557

457

561539

1.9

1.5

0.0

0.5

1.0

1.5

2.0

2.5

0

100

200

300

400

500

600




De

c 3

7%

YO

Y

De

c 8

% Y

OY

De

cre

ase

18

% Y

OY

De

cre

ase

4%

YO

Y

55

2522

65

3.2

1.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0

10

20

30

40

50

60

70

4Q14 4Q15

Orders Deliveries Absorption

Orders, Deliveries and Absorption RateFor the quarters ended December 31, 2014 and 2015 on an adjusted basis(1)

24



Orders, Deliveries and Absorption RateFor the years ended December 31, 2014 and 2015 on an adjusted basis(1)

126

193

57

1933.2

2.6

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0

50

100

150

200

250


FY14 FY15$406K $496K

Average Sales Price of Deliveries

Colorado

De

c 5

5%

YO

Y

Inc

19

5%

YO

Y

Incr

eas

e 5

3%

YO

Y

Incr

eas

e 2

39

% Y

OY

152 147

224

3843.2

2.3

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0

50

100

150

200

250

300

350

400

450


Orders, Deliveries and Absorption RateFor the quarters ended December 31, 2014 and 2015 on an adjusted basis(1)

25


(1) Includes legacy TRI Pointe operations for the periods prior to July 7, 2014, the closing date of the WRECO transaction. See “Reconciliation of Non-GAAP Financial Measures” in the appendix of this presentation

569

914

544

867

3.3

3.7

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0

200

400

600

800

1,000


Orders, Deliveries and Absorption RateFor the years ended December 31, 2014 and 2015 on an adjusted basis(1)


California

De

c 3

% Y

OY

Inc

71

% Y

OY

Incr

eas

e 5

9%

YO

Y

Incr

eas

e 6

1%

YO

Y

86

102

134

1662.6

2.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0

20

40

60

80

100

120

140

160

180



26


339

412387

437

1.6

2.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0

50

100

150

200

250

300

350

400

450

500




Incr

eas

e 1

9%

YO

Y

Incr

eas

e 1

3%

YO

Y

Incr

eas

e 2

2%

YO

Y

Incr

eas

e 2

4%

YO

Y

2016 Outlook

First Quarter 2016 Update and Outlook

28

• New home orders were flat for the month of January as compared to the Company results for the comparable month a year ago; however, absorption per month per average community increased slightly to 2.98 from 2.96 for the comparable month a year ago

• Anticipate opening 25 new communities and closing out of 11, resulting in 118 active selling communities as of March 31, 2016

• Anticipate delivering approximately 60% of the 1,156 homes in backlog as of December 31, 2015

• Anticipate homebuilding gross margins on deliveries in 1Q16 in a range of 21% to 22%

See Forward Looking Statement disclosure on page 2 of the presentation

Full Year 2016 Update and Outlook

29

• Expect to grow active selling communities by 20% for the full year

• Anticipate delivering between 4,200 and 4,400 homes at an average sales price of $550,000

• Anticipate generating between $45 and $50 million of gross profit from land and lot sales, most of which are expected to close in the second and third quarter of 2016

• Anticipate homebuilding gross margins for the full year in a range of 20% to 21%

• Anticipate SG&A expenses as a percentage of home sales revenue to a range of 10.3% to 10.5%

See Forward Looking Statement disclosure on page 2 of the presentation

Significant Land Supply

Orders by Month

Debt

Significant Land Supply to Fuel Growth

Combined Lot Position

Market Owned Controlled Total Lots % Owned Inventory Dollars LTM Deliveries Years of Supply

California 16,904 623 17,527 96% $1,418,123 1,623 10.8

Colorado 375 501 876 43% $71,477 193 4.5

Washington, D.C. (1) 1,955 397 2,352 83% $251,813 437 5.4

Arizona 1,566 245 1,811 87% $206,912 480 3.8

Nevada 1,539 365 1,904 81% $181,512 374 5.1

Texas 1,367 491 1,858 74% $199,398 539 3.4

Washington 1,027 247 1,274 81% $190,038 411 3.1

Total 24,733 2,869 27,602 90% $2,519,273 4,057 6.8

As of December 31, 2015

63%

3%

8%

7%

7%

7%5%

California

Colorado

Washington, D.C. (1)

Arizona

Nevada

Texas

Washington

Total Lots

(1) Includes lots in the greater Washington D.C. area. Note: Dollars in thousands

56%

3%

10%

8%

7%

8%

8%

Inventory Dollars

31

New Home Orders – Oct 2014 to Jan 2016

32

249 252

213

324

415

455

410

457

371355

367

274

318

227208

322

0

50

100

150

200

250

300

350

400

450

500

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

New Home Orders (October 2014 through January 2016)

2.38 2.42 2.00 2.96 3.67 3.91 3.47 3.82 3.05 2.91 2.97 2.29 2.76 1.98 1.92 2.98

Absorption Rate = Orders per Month per Community

20152014 2016

Selected Balance Sheet Metrics

33

$450 $450

$0

$100

$200

$300

$400

$500

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

4.375% Senior Notes 5.875% Senior Notes

• In December 2015, the Company made a $50 million pay down on its unsecured revolving credit facility.

$ in thousands 12/31/2015 12/31/2014

Cash and cash equivalents $ 214,485 $ 170,629

Real estate inventories $ 2,519,273 $ 2,280,183

Debt $ 1,170,505 $ 1,138,493

Stockholders' equity $ 1,664,683 $ 1,454,180

Debt-to-capitalNet debt-to-capital(1)

41.3%36.5%

43.9%40.0%

Selected Balance Sheet Metrics

Debt Maturities (in millions)

(1) See “Reconciliation of Non-GAAP Measures” in the Company’s press release

Supplemental Data and Reconciliation

Reconciliation of Non-GAAP Financial Measures(unaudited)

35

In this presentation, we utilize certain financial measures that are non-GAAP financial measures as defined by the Securities and Exchange Commission. We present these measures because we believe they and similar measures are useful to management and investors in evaluating the Company’s operating performance and financing structure. We also believe these measures facilitate the comparison of our operating performance and financing structure with other companies in our industry. Because these measures are not calculated inaccordance with Generally Accepted Accounting Principles (“GAAP”), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.

The following table reconciles homebuilding gross margin percentage, as reported and prepared in accordance with GAAP, to the non-GAAP measure adjusted homebuilding gross margin percentage. We believe this information is meaningful as it isolates the impact that leverage has on homebuilding gross margin and permits investors to make better comparisons with our competitors, who adjust gross margins in a similar fashion.

Three Months Ended December 31,

2015 % 2014 %


Home sales revenue $ 847,409 100.0% $ 622,962 100.0%

Cost of home sales 659,492 77.8% 497,990 79.9%

Homebuilding impairments and lot option abandonments 93 0.0% 1,250 0.2%

Homebuilding gross margin 187,824 22.2% 123,722 19.9%

Add: interest in cost of home sales 16,759 2.0% 12,012 1.9%

Add: impairments and lot option abandonments 93 0.0% 1,250 0.2%

Adjusted homebuilding gross margin $ 204,676 24.2% $ 136,984 22.0%

Homebuilding gross margin percentage 22.2% 19.9%

Adjusted homebuilding gross margin percentage 24.2% 22.0%

Reconciliation of Non-GAAP Financial Measures(unaudited)

36

The following table reconciles homebuilding gross margin percentage, as reported and prepared in accordance with GAAP, to the non-GAAP measure adjusted homebuilding gross margin percentage. We believe this information is meaningful as it isolates the impact that leverage has on homebuilding gross margin and permits investors to make better comparisons with our competitors, who adjust gross margins in a similar fashion.

Year Ended December 31,

2015 % 2014 %


Home sales revenue $ 2,291,264 100.0% $ 1,646,274 100.0%

Cost of home sales 1,807,091 78.9% 1,316,470 80.0%

Homebuilding impairments and lot option abandonments 1,685 0.1% 2,147 0.1%

Homebuilding gross margin 482,488 21.1% 327,657 19.9%

Add: interest in cost of home sales 44,299 1.9% 28,354 1.7%

Add: impairments and lot option abandonments 1,685 0.1% 2,147 0.1%

Adjusted homebuilding gross margin $ 528,472 23.1% $ 358,158 21.8%

Homebuilding gross margin percentage 21.1% 19.9%

Adjusted homebuilding gross margin percentage 23.1% 21.8%

Reconciliation of Non-GAAP Financial Measures (cont’d)(unaudited)

37

The merger with Weyerhaeuser Real Estate Company (“WRECO”) was accounted for as a "reverse acquisition" of TRI Pointe by WRECO inaccordance with ASC Topic 805, "Business Combinations." As a result, legacy TRI Pointe's financial results are not included in the combined company’s GAAP results for any period prior to July 7, 2014, the closing date of the merger. This schedule provides certain supplemental financial and operations information of the combined company that is “Adjusted" to include legacy TRI Pointe stand-alone operations. No other adjustments have been made to the supplemental combined company information provided and this information is summary only and may not necessarily be indicative of the results had the merger occurred at the beginning of the periods presented or the financial condition to be expected for the remainder of the year or any future date or period.

The following schedule provides certain supplemental financial and operations information of the combined company that is “Adjusted" to include legacy TRI Pointe stand-alone operations for the year ending December 31, 2104 as though the WRECO merger was completed on January 1, 2014.

Year Ended

December 31, 2015 December 31, 2014

Combined Legacy Combined Combined Legacy Combined

Reported Adjustments Adjusted Reported Adjustments Adjusted

Supplemental Operating Data: (dollars in thousands)

Home sales revenue $ 2,291,264 NA $ 2,291,264 $ 1,646,274 $ 162,107 $ 1,808,381

Net new home orders 4,181 NA 4,181 2,947 336 3,283

New homes delivered 4,057 NA 4,057 3,100 197 3,297

Average selling price of homes delivered $ 565 NA $ 565 $ 531 $ 823 $ 548

Reconciliation of Non-GAAP Financial Measures (cont’d)(unaudited)

38

The following table reconciles the Company’s ratio of debt-to-capital to the ratio of net debt-to-capital. We believe that the ratio of net debt-to-capital is a relevant financial measure for management and investors to understand the leverage employed in our operations and as an indicator of the Company’s ability to obtain financing.

December 31, December 31,

2015 2014


Unsecured revolving credit facility $ 299,392 $ 260,000

Seller financed loans 2,434 14,677

Senior Notes 868,679 863,816

Total debt 1,170,505 1,138,493

Stockholders' equity 1,664,683 1,454,180

Total capital $ 2,835,188 $ 2,592,673

Ratio of debt-to-capital(1) 41.3% 43.9%

Total debt $ 1,170,505 $ 1,138,493

Less: Cash and cash equivalents (214,485) (170,629)

Net debt 956,020 967,864

Stockholders' equity 1,664,683 1,454,180

Total capital $ 2,620,703 $ 2,422,044

Ratio of net debt-to-capital(2) 36.5% 40.0%

(1) The ratio of debt-to-capital is computed as the quotient obtained by dividing debt by the sum of debt plus equity. (2) The ratio of net debt-to-capital is computed as the quotient obtained by dividing net debt (which is debt less cash and cash

equivalents) by the sum of net debt plus equity. The most directly comparable GAAP financial measure is the ratio of debt-to-

capital.

2015 fourth quarter and full year results...2015 fourth quarter highlights 6 (1) see...

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