Tri Pointe Homes, Inc. Reports 2024 Second Quarter Results

-Home Sales Revenue of $1.1 Billion- 
-Homebuilding Gross Margin Percentage of 23.6%- 
-Diluted Earnings Per Share of $1.25- 
-Increased Dollar Value of Backlog to $2.0 Billion- 
-Reduced Debt by $450 Million- 
-Homebuilding Debt-to-Capital Ratio Reduced to Record Low of 22.9%-

INCLINE VILLAGE, Nev., July 25, 2024 (GLOBE NEWSWIRE) — Tri Pointe Homes, Inc. (the “Company”) (NYSE:TPH) today announced results for the second quarter ended June 30, 2024.

“I am pleased to report another quarter of outstanding results, driven by our focus on expanding scale and efficiencies within our existing markets while building a foundation for future growth in our new markets,” said Doug Bauer, Tri Pointe Homes Chief Executive Officer. “We delivered 1,700 homes, resulting in home sales revenue of $1.1 billion, a 38% increase compared to the previous year. This strong revenue growth, fueled by the 45% increase in deliveries, resulted in net income of $118 million and diluted earnings per share of $1.25, increases of 94% and 108%, respectively, compared to the previous year.”

Mr. Bauer continued, “As we continue to build scale across our markets, and due to the strong demand and pricing power we have experienced in recent quarters, our homebuilding gross margin percentage increased 320 basis points year-over-year to 23.6%. Additionally, during the quarter, we redeemed $450 million of senior notes using cash on hand, which allowed us to reduce balance sheet debt and lower our homebuilding debt-to-capital ratio to a record low 22.9%, while maintaining strong liquidity of $1.2 billion, underscoring our commitment to fortifying our balance sheet.”

“Our organic start-up divisions in the Coastal Carolinas, Florida, and Utah are off to a strong start as we continue to attract talent and build land relationships in advance of our first deliveries,” said Tri Pointe Homes President and Chief Operating Officer, Tom Mitchell. “While we acknowledge that realizing the full value of our organic growth will require both capital investment and time, our cash flows continue to support this expansion and we see the benefits of geographic diversification. With ongoing demographic support and a persistent undersupply of homes, including the resale market, we believe we are in a strong position to utilize our capital to create significant value for our stakeholders.”

Results and Operational Data for Second Quarter 2024 and Comparisons to Second Quarter 2023

  • Net income available to common stockholders was $118.0 million, or $1.25 per diluted share, compared to $60.7 million, or $0.60 per diluted share
  • Home sales revenue of $1.1 billion compared to $819.1 million, an increase of 38%
    • New home deliveries of 1,700 homes compared to 1,173 homes, an increase of 45%
    • Average sales price of homes delivered of $666,000 compared to $698,000, a decrease of 5%
  • Homebuilding gross margin percentage of 23.6% compared to 20.4%, an increase of 320 basis points
    • Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 27.1%*
  • SG&A expense as a percentage of home sales revenue of 11.0% compared to 11.9%, a decrease of 90 basis points
  • Net new home orders of 1,651 compared to 1,912, a decrease of 14%
  • Active selling communities averaged 152.5 compared to 140.3, an increase of 9%
    • Net new home orders per average selling community were 10.8 orders (3.6 monthly) compared to 13.6 orders (4.5 monthly)
    • Cancellation rate of 9% compared to 8%
  • Backlog units at quarter end of 2,692 homes compared to 2,765, a decrease of 3%
    • Dollar value of backlog at quarter end of $2.0 billion compared to $1.9 billion, an increase of 4%
    • Average sales price of homes in backlog at quarter end of $743,000 compared to $695,000, an increase of 7%
  • Redeemed and fully repaid the $450 million principal amount of 5.875% Senior Notes due June 2024
  • Ratios of homebuilding debt-to-capital and net homebuilding debt-to-net capital of 22.9% and 12.2%*, respectively, as of June 30, 2024
  • Repurchased 1,046,062 shares of common stock at a weighted average price per share of $35.08 for an aggregate dollar amount of $36.7 million in the three months ended June 30, 2024
  • Ended the second quarter of 2024 with total liquidity of $1.2 billion, including cash and cash equivalents of $492.9 million and $707.3 million of availability under our revolving credit facility
* See “Reconciliation of Non-GAAP Financial Measures”
   

Outlook

For the third quarter, the Company anticipates delivering between 1,450 and 1,550 homes at an average sales price between $685,000 and $695,000. The Company expects homebuilding gross margin percentage to be in the range of 23.0% to 23.5% for the third quarter and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 11.0% to 11.5%. Finally, the Company expects its effective tax rate for the third quarter to be approximately 25.5%.

For the full year, the Company anticipates delivering between 6,300 and 6,500 homes at an average sales price between $670,000 and $680,000. The Company expects homebuilding gross margin percentage to be in the range of 23.0% to 23.5% for the full year and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 10.5% to 11.0%. Finally, the Company expects its effective tax rate for the full year to be approximately 25.5%.

Earnings Conference Call

The Company will host a conference call via live webcast for investors and other interested parties beginning at 10:00 a.m. Eastern Time on Thursday, July 25, 2024. The call will be hosted by Doug Bauer, Chief Executive Officer, Tom Mitchell, President and Chief Operating Officer, Glenn Keeler, Chief Financial Officer, and Linda Mamet, Executive Vice President and Chief Marketing Officer. Interested parties can listen to the call live and view the related slides on the Internet under the Events & Presentations heading in the Investors section of the Company’s website at www.TriPointeHomes.com. Listeners should go to the website at least fifteen minutes prior to the call to download and install any necessary audio software. The call can also be accessed toll free at (877) 407-3982, or (201) 493-6780 for international participants. Participants should ask for the Tri Pointe Homes Second Quarter 2024 Earnings Conference Call. Those dialing in should do so at least ten minutes prior to the start of the call. A replay of the call will be available for two weeks following the call toll free at (844) 512-2921, or (412) 317-6671 for international participants, using the reference number 13747485. An archive of the webcast will also be available on the Company’s website for a limited time.

About Tri Pointe Homes, Inc.

One of the largest homebuilders in the U.S., Tri Pointe Homes, Inc. (NYSE: TPH) is a publicly traded company operating in 12 states and the District of Columbia, and is a recognized leader in customer experience, innovative design, and environmentally responsible business practices. The company builds premium homes and communities with deep ties to the communities it serves—some for as long as a century. Tri Pointe Homes combines the financial resources, technology platforms and proven leadership of a national organization with the regional insights, longstanding community connections and agility of empowered local teams. Tri Pointe has won multiple Builder of the Year awards, was named to the 2024 Fortune World’s Most Admired Companies™ list, is one of the 2023 Fortune 100 Best Companies to Work For® and was designated as one of the 2023 PEOPLE Companies That Care®. The company was also named as a Great Place To Work-Certified™ company for three years in a row (2021 through 2023), and was named on several Great Place To Work® Best Workplaces lists in 2022 and 2023. For more information, please visit TriPointeHomes.com.

Forward-Looking Statements

Various statements contained in this press release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include, but are not limited to, statements regarding our strategy, projections and estimates concerning the timing and success of specific projects and our future production, land and lot sales, operational and financial results, including our estimates for growth, financial condition, sales prices, prospects, and capital spending. Forward-looking statements that are included in this press release are generally accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “future,” “goal,” “guidance,” “intend,” “likely,” “may,” “might,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “strategy,” “target,” “will,” “would,” or other words that convey future events or outcomes. The forward-looking statements in this press release speak only as of the date of this press release, 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 differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements: the effects of general economic conditions, including employment rates, housing starts, interest rate levels, home affordability, inflation, consumer sentiment, availability of financing for home mortgages and strength of the U.S. dollar; market demand for our products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions; the availability of desirable and reasonably priced land and our ability to control, purchase, hold and develop such parcels; access to adequate capital on acceptable terms; geographic concentration of our operations; levels of competition; the successful execution of our internal performance plans, including restructuring and cost reduction initiatives; the prices and availability of supply chain inputs, including raw materials, labor and home components; oil and other energy prices; the effects of U.S. trade policies, including the imposition of tariffs and duties on homebuilding products and retaliatory measures taken by other countries; the effects of weather, including the occurrence of drought conditions in parts of the western United States; the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other natural disasters, and the risk of delays, reduced consumer demand, and shortages and price increases in labor or materials associated with such natural disasters; the risk of loss from acts of war, terrorism, civil unrest or public health emergencies, including outbreaks of contagious disease, such as COVID-19; transportation costs; federal and state tax policies; the effects of land use, environment and other governmental laws and regulations; legal proceedings or disputes and the adequacy of reserves; risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, synergies, indebtedness, financial condition, losses and future prospects; changes in accounting principles; risks related to unauthorized access to our computer systems, theft of our homebuyers’ confidential information or other forms of cyber-attack; 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.

Investor Relations Contact:
[email protected], 949-478-8696

Media Contact:

Carol Ruiz, [email protected], 310-437-0045

 
KEY OPERATIONS AND FINANCIAL DATA
(dollars in thousands)
(unaudited)
 
    Three Months Ended June 30,   Six Months Ended June 30,
      2024       2023     Change   % Change     2024       2023     Change   % Change
Operating Data:   (unaudited)
Home sales revenue   $ 1,133,008     $ 819,077     $ 313,931     38 %   $ 2,051,361     $ 1,587,482     $ 463,879     29 %
Homebuilding gross margin   $ 267,327     $ 167,078     $ 100,249     60 %   $ 478,376     $ 347,365     $ 131,011     38 %
Homebuilding gross margin %     23.6 %     20.4 %     3.2 %         23.3 %     21.9 %     1.4 %    
Adjusted homebuilding gross margin %*     27.1 %     24.9 %     2.2 %         26.8 %     25.5 %     1.3 %    
SG&A expense   $ 124,551     $ 97,465     $ 27,086     28 %   $ 226,103     $ 185,693     $ 40,410     22 %
SG&A expense as a % of home sales revenue     11.0 %     11.9 %     (0.9 )%         11.0 %     11.7 %     (0.7 )%    
Net income available to common stockholders   $ 118,002     $ 60,724     $ 57,278     94 %   $ 217,057     $ 135,466     $ 81,591     60 %
Adjusted EBITDA*   $ 215,998     $ 129,928     $ 86,070     66 %   $ 391,891     $ 263,903     $ 127,988     48 %
Interest incurred   $ 30,378     $ 37,394     $ (7,016 )   (19 )%   $ 66,534     $ 74,873     $ (8,339 )   (11 )%
Interest in cost of home sales   $ 38,994     $ 25,366     $ 13,628     54 %   $ 69,643     $ 45,592     $ 24,051     53 %
                                 
Other Data:                                
Net new home orders     1,651       1,912       (261 )   (14 )%     3,465       3,531       (66 )   (2 )%
New homes delivered     1,700       1,173       527     45 %     3,093       2,238       855     38 %
Average sales price of homes delivered   $ 666     $ 698     $ (32 )   (5 )%   $ 663     $ 709     $ (46 )   (6 )%
Cancellation rate     9 %     8 %     1 %         8 %     9 %     (1 )%    
Average selling communities     152.5       140.3       12.2     9 %     152.7       138.4       14.3     10 %
Selling communities at end of period     153       145       8     6 %                
Backlog (estimated dollar value)   $ 1,999,852     $ 1,922,895     $ 76,957     4 %                
Backlog (homes)     2,692       2,765       (73 )   (3 )%                
Average sales price in backlog   $ 743     $ 695     $ 48     7 %                
                                 
    June 30,   December 31,                      
      2024       2023     Change    Change                
Balance Sheet Data:   (unaudited)                            
Cash and cash equivalents   $ 492,940     $ 868,953     $ (376,013 )   (43 )%                
Real estate inventories   $ 3,465,811     $ 3,337,483     $ 128,328     4 %                
Lots owned or controlled     34,037       31,960       2,077     6 %                
Homes under construction (1)     3,457       3,088       369     12 %                
Homes completed, unsold     246       263       (17 )   (6 )%                
Total homebuilding debt   $ 929,959     $ 1,382,586     $ (452,627 )   (33 )%                
Stockholders’ equity   $ 3,139,484     $ 3,010,958     $ 128,526     4 %                
Book capitalization   $ 4,069,443     $ 4,393,544     $ (324,101 )   (7 )%                
Ratio of homebuilding debt-to-capital     22.9 %     31.5 %     (8.6 )%                    
Ratio of net homebuilding debt-to-net capital*     12.2 %     14.6 %     (2.4 )%                    

__________
(1)   Homes under construction included 34 and 69 models as of June 30, 2024 and December 31, 2023, respectively.
*    See “Reconciliation of Non-GAAP Financial Measures”

 
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
 
    June 30,   December 31,
     2024    2023
Assets   (unaudited)    
Cash and cash equivalents   $ 492,940   $ 868,953
Receivables     111,637     224,636
Real estate inventories     3,465,811     3,337,483
Investments in unconsolidated entities     133,591     131,824
Mortgage loans held for sale     32,936    
Goodwill and other intangible assets, net     156,603     156,603
Deferred tax assets, net     37,996     37,996
Other assets     164,684     157,093
Total assets   $ 4,596,198   $ 4,914,588
         
Liabilities        
Accounts payable   $ 57,410   $ 64,833
Accrued expenses and other liabilities     437,237     453,531
Loans payable     283,929     288,337
Senior notes     646,030     1,094,249
Mortgage repurchase facilities     32,096    
Total liabilities     1,456,702     1,900,950
         
Commitments and contingencies        
         
Equity        
Stockholders’ equity:        
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively        
Common stock, $0.01 par value, 500,000,000 shares authorized; 93,862,218 and 95,530,512 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively     939     955
Additional paid-in capital        
Retained earnings     3,138,545     3,010,003
Total stockholders’ equity     3,139,484     3,010,958
Noncontrolling interests     12     2,680
Total equity     3,139,496     3,013,638
Total liabilities and equity   $ 4,596,198   $ 4,914,588
 
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
 
    Three Months Ended June 30,   Six Months Ended June 30,
      2024       2023       2024       2023  
Homebuilding:                
Home sales revenue   $ 1,133,008     $ 819,077     $ 2,051,361     $ 1,587,482  
Land and lot sales revenue     4,160       7,086       11,228       8,792  
Other operations revenue     782       796       1,569       1,470  
Total revenues     1,137,950       826,959       2,064,158       1,597,744  
Cost of home sales     865,681       651,999       1,572,985       1,240,117  
Cost of land and lot sales     3,841       7,370       9,598       8,813  
Other operations expense     765       782       1,530       1,447  
Sales and marketing     56,804       43,241       107,028       85,103  
General and administrative     67,747       54,224       119,075       100,590  
Homebuilding income from operations     143,112       69,343       253,942       161,674  
Equity in income of unconsolidated entities     99       42       156       269  
Other income, net     9,934       11,093       25,160       18,697  
Homebuilding income before income taxes     153,145       80,478       279,258       180,640  
Financial Services:                
Revenues     16,974       10,370       30,168       19,246  
Expenses     10,890       7,405       19,617       13,236  
Financial services income before income taxes     6,084       2,965       10,551       6,010  
Income before income taxes     159,229       83,443       289,809       186,650  
Provision for income taxes     (41,227 )     (21,472 )     (72,811 )     (48,822 )
Net income     118,002       61,971       216,998       137,828  
Net income attributable to noncontrolling interests           (1,247 )     59       (2,362 )
Net income available to common stockholders   $ 118,002     $ 60,724     $ 217,057     $ 135,466  
Earnings per share                
Basic   $ 1.25     $ 0.61     $ 2.29     $ 1.35  
Diluted   $ 1.25     $ 0.60     $ 2.28     $ 1.34  
Weighted average shares outstanding                
Basic     94,059,037       99,598,933       94,645,676       100,305,168  
Diluted     94,740,019       100,634,964       95,305,469       101,184,993  
 
MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY
(dollars in thousands)
(unaudited)
 
  Three Months Ended June 30,   Six Months Ended June 30,
  2024   2023   2024   2023
  New
Homes
Delivered
  Average
Sales
Price
  New
Homes
Delivered
  Average
Sales
Price
  New
Homes
Delivered
  Average
Sales
Price
  New
Homes
Delivered
  Average
Sales
Price
Arizona 140   $ 712   195   $ 765   277   $ 724   330   $ 773
California 570     762   352     798   987     766   691     813
Nevada 117     646   88     743   230     665   186     753
Washington 74     875   40     733   127     886   58     802
West total 901     748   675     778   1,621     754   1,265     793
Colorado 53     675   49     732   95     703   93     758
Texas 475     556   278     560   915     553   488     588
Central total 528     568   327     586   1,010     567   581     615
Carolinas(1) 208     489   142     483   382     477   317     458
Washington D.C. Area(2) 63     904   29     1,176   80     937   75     1,082
East total 271     586   171     600   462     556   392     577
     Total 1,700   $ 666   1,173   $ 698   3,093   $ 663   2,238   $ 709
                               
  Three Months Ended June 30,   Six Months Ended June 30,
  2024   2023   2024   2023
  Net New
Home
Orders
  Average
Selling
Communities
  Net New
Home
Orders
  Average
Selling
Communities
  Net New
Home
Orders
  Average
Selling
Communities
  Net New
Home
Orders
  Average
Selling
Communities
Arizona 182     15.2   189     13.7   338     13.6   306     13.4
California 576     42.2   787     49.2   1,189     44.1   1,488     51.6
Nevada 118     8.3   105     8.0   272     8.9   189     7.6
Washington 77     5.8   70     5.8   184     5.7   122     5.4
West total 953     71.5   1,151     76.7   1,983     72.3   2,105     78.0
Colorado 25     10.5   38     6.8   72     10.7   79     6.4
Texas 441     52.5   494     39.0   924     52.4   808     36.1
Central total 466     63.0   532     45.8   996     63.1   887     42.5
Carolinas(1) 130     11.5   188     14.3   309     11.4   439     14.5
Washington D.C. Area(2) 102     6.5   41     3.5   177     5.9   100     3.4
East total 232     18.0   229     17.8   486     17.3   539     17.9
     Total 1,651     152.5   1,912     140.3   3,465     152.7   3,531     138.4

(1) Carolinas comprises North Carolina and South Carolina.
(2) Washington D.C. Area comprises Maryland, Virginia and the District of Columbia.

 
MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY, continued
(dollars in thousands)
(unaudited)
 
  As of June 30, 2024   As of June 30, 2023
  Backlog
Units
  Backlog
Dollar
Value
  Average
Sales
Price
  Backlog
Units
  Backlog
Dollar
Value
  Average
Sales
Price
Arizona 320   $ 245,870   $ 768   354   $ 276,167   $ 780
California 900     724,667     805   1,095     797,480     728
Nevada 173     100,881     583   128     94,278     737
Washington 147     138,919     945   99     91,266     922
West total 1,540     1,210,337     786   1,676     1,259,191     751
Colorado 25     18,664     747   36     24,889     691
Texas 715     428,420     599   602     340,938     566
Central total 740     447,084     604   638     365,827     573
Carolinas(1) 209     115,638     553   342     156,759     458
Washington D.C. Area(2) 203     226,793     1,117   109     141,118     1,295
East total 412     342,431     831   451     297,877     660
     Total 2,692   $ 1,999,852   $ 743   2,765   $ 1,922,895   $ 695
                       
  June 30,   December 31,                
  2024    2023                
Lots Owned or Controlled:                      
Arizona 2,123     2,394                
California 10,650     10,148                
Nevada 1,579     1,785                
Washington 698     712                
West total 15,050     15,039                
Colorado 1,849     1,908                
Texas 10,700     10,056                
Utah 156                    
Central total 12,705     11,964                
Carolinas(1) 5,022     4,038                
Washington D.C. Area(2) 1,260     919                
East total 6,282     4,957                
Total 34,037     31,960                
                       
  June 30,   December 31,                
  2024    2023                
Lots by Ownership Type:                      
Lots owned 17,824     18,739                
Lots controlled (3) 16,213     13,221                
Total 34,037     31,960                

(1) Carolinas comprises North Carolina and South Carolina.
(2) Washington D.C. Area comprises Maryland, Virginia and the District of Columbia.
(3) As of June 30, 2024 and December 31, 2023, lots controlled included lots that were under land option contracts or purchase contracts. As of June 30, 2024 and December 31, 2023, lots controlled for Central include 3,449 and 3,561 lots, respectively, and lots controlled for East include 47 and 71 lots, respectively, which represent our expected share of lots owned by our investments in unconsolidated land development joint ventures.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(unaudited)

In this press release, 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 in accordance 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 tables reconcile the 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 June 30,
    2024     %     2023     %
  (dollars in thousands)
Home sales revenue $ 1,133,008     100.0 %   $ 819,077     100.0 %
Cost of home sales   865,681     76.4 %     651,999     79.6 %
Homebuilding gross margin   267,327     23.6 %     167,078     20.4 %
Add:  interest in cost of home sales   38,994     3.4 %     25,366     3.1 %
Add:  impairments and lot option abandonments   968     0.1 %     11,761     1.4 %
Adjusted homebuilding gross margin $ 307,289     27.1 %   $ 204,205     24.9 %
Homebuilding gross margin percentage   23.6 %         20.4 %    
Adjusted homebuilding gross margin percentage   27.1 %         24.9 %    
  Six Months Ended June 30,
    2024     %     2023     %
  (dollars in thousands)
Home sales revenue $ 2,051,361     100.0 %   $ 1,587,482     100.0 %
Cost of home sales   1,572,985     76.7 %     1,240,117     78.1 %
Homebuilding gross margin   478,376     23.3 %     347,365     21.9 %
Add:  interest in cost of home sales   69,643     3.4 %     45,592     2.9 %
Add:  impairments and lot option abandonments   1,370     0.1 %     12,478     0.8 %
Adjusted homebuilding gross margin $ 549,389     26.8 %   $ 405,435     25.5 %
Homebuilding gross margin percentage   23.3 %         21.9 %    
Adjusted homebuilding gross margin percentage   26.8 %         25.5 %    
 
 

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
(unaudited)

The following table reconciles the Company’s ratio of homebuilding debt-to-capital to the non-GAAP ratio of net homebuilding debt-to-net capital. We believe that the ratio of net homebuilding debt-to-net 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.

    June 30, 2024   December 31, 2023
Loans payable   $ 283,929     $ 288,337  
Senior notes     646,030       1,094,249  
Mortgage repurchase facilities     32,096        
Total debt     962,055       1,382,586  
Less: mortgage repurchase facilities     (32,096 )      
Total homebuilding debt     929,959       1,382,586  
Stockholders’ equity     3,139,484       3,010,958  
Total capital   $ 4,069,443     $ 4,393,544  
Ratio of homebuilding debt-to-capital(1)     22.9 %     31.5 %
         
Total homebuilding debt   $ 929,959     $ 1,382,586  
Less: Cash and cash equivalents     (492,940 )     (868,953 )
Net homebuilding debt     437,019       513,633  
Stockholders’ equity     3,139,484       3,010,958  
Net capital   $ 3,576,503     $ 3,524,591  
Ratio of net homebuilding debt-to-net capital(2)     12.2 %     14.6 %

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

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
(unaudited)

The following table calculates the non-GAAP financial measures of EBITDA and Adjusted EBITDA and reconciles those amounts to net income available to common stockholders, as reported and prepared in accordance with GAAP. EBITDA means net income available to common stockholders before (a) interest expense, (b) expensing of previously capitalized interest included in costs of home sales, (c) income taxes and (d) depreciation and amortization. Adjusted EBITDA means EBITDA before (e) amortization of stock-based compensation and (f) impairments and lot option abandonments. Other companies may calculate EBITDA and Adjusted EBITDA (or similarly titled measures) differently. We believe EBITDA and Adjusted EBITDA are useful measures of the Company’s ability to service debt and obtain financing.

    Three Months Ended June 30,   Six Months Ended June 30,
      2024       2023       2024       2023  
    (in thousands)
Net income available to common stockholders   $ 118,002     $ 60,724     $ 217,057     $ 135,466  
Interest expense:                
Interest incurred     30,378       37,394       66,534       74,873  
Interest capitalized     (30,378 )     (37,394 )     (66,534 )     (74,873 )
Amortization of interest in cost of sales     39,164       25,681       70,010       45,932  
Provision for income taxes     41,227       21,472       72,811       48,822  
Depreciation and amortization     7,697       6,128       15,024       13,182  
EBITDA     206,090       114,005       374,902       243,402  
Amortization of stock-based compensation     8,940       4,162       15,619       8,023  
Impairments and lot option abandonments     968       11,761       1,370       12,478  
Adjusted EBITDA   $ 215,998     $ 129,928     $ 391,891     $ 263,903  


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