IRVINE, CA—TRI Pointe Homes Inc. reports in a Q1 earnings report that its subsidiary’s acquisition of WRECO, a wholly owned homebuilding and real estate subsidiary of Weyerhaeuser Co., is on target to close early in the third quarter of the year. The acquisition, as GlobeSt.com reported in November 2013, will establish TRI Pointe as one of the 10 largest homebuilders in the US based on estimated combined equity market value.
According to Doug Bauer, CEO of TRI Pointe, “We are pleased with our strong operating results during the first quarter while we continue to complete the integration and transition of the WRECO companies. These results are a direct result of our disciplined land-acquisition process that leads to the opening of new communities in excellent locations.”
In the report, Bauer added that the firm is well positioned to achieve meaningful top- and bottom-line growth over 2013. When the merger is complete, the company “will be composed of six well-positioned regional homebuilding brands in some of the best housing markets.”
Exclusive of the WRECO transaction, TRI Pointe expects to open 22 new selling communities for the balance of 2014, of which 16 are in California and six in Colorado. In the second quarter of 2014, the firm expects to deliver approximately 50% of its 195 units in backlog as of March 31. And for the full calendar year, it is maintaining its initial guidance for deliveries of 660 homes and home sales revenue of $475 million, exclusive of the WRECO transaction, according to the report.
The firm had other highlights to report in comparison to Q1 2013, including net income of $4.3 million, or $0.14 per diluted share compared to net income of $270,000 or $0.01 per diluted share; new home orders of 138 compared to 123; backlog increase of 36% to 195 homes with a dollar-value increase of more than 100% to $157.7 million; home-sales revenue of $72.8 million, an increase of 205%; homebuilding gross-margin percentage of 22.5%, an increase of 400 bps; acquisition of 319 lots valued at $30.5 million; and ratio of debt to capital of 35.1% as of March 31.
Bauer had no further comment on the report for GlobeSt.com.