TRI Pointe Homes Q3 Profit Down; Backs FY15 Profit View - Quick Facts

(RTTNews) - TRI Pointe Homes Inc. (TPH) reported that its third-quarter net income declined to $10.97 million from the previous year's $20.16 million, with earnings per share decreasing to $0.07 from $0.16 last year.

Income from continuing operations was $11.0 million, or $0.07 per share in the third quarter of 2014, compared to income from continuing operations of $19.9 million, or $0.15 per diluted share for the third quarter of 2013. Income from continuing operations for the third quarter of 2014 was impacted by $36.7 million of expenses related to non-cash purchase accounting adjustments, restructuring charges and other expenses related to the merger. Excluding these items, net of tax, income from continuing operations would have been $34.7 million, or $0.22 per share.

Home sales revenue increased $167.2 million to $471.8 million for the third quarter of 2014, as compared to $304.6 million for the same period in 2013. The increase was attributable to the addition of legacy TRI Pointe's operations at the closing date of the merger and a 41% increase in the Company's average sales price of homes delivered to $560,000.

New home orders increased to 803 homes for the third quarter of 2014, as compared to 767 homes for the same period in 2013.

Total revenuesgrew to $477.92 million from $323.87 million in the previous year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.09 per share and revenues of $455.76 million for the quarter. Analysts' estimates typically exclude special items.

For the fourth quarter of 2014, the Company expects to open ten new communities, offset by final net new home orders at eight communities, resulting in 108 active selling communities as of December 31, 2014.

For the full year 2015, the Company expects to grow communities by 25% and grow new home deliveries in excess of 25% over the 2014 combined deliveries of legacy TRI Pointe and WRECO. The Company re-iterated its' 2015 outlook for earnings per share range of $1.25 to $1.40. Analysts expect the company to report earnings of $1.30 per share for fiscal 2015.