TRI POINTE HOMES, INC., 10-Q filed on 8/13/2013
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2013
Aug. 7, 2013
Document Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jun. 30, 2013 
 
Document Fiscal Year Focus
2013 
 
Document Fiscal Period Focus
Q2 
 
Trading Symbol
TPH 
 
Entity Registrant Name
TRI Pointe Homes, Inc. 
 
Entity Central Index Key
0001561680 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Non-accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
31,597,907 
CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Assets
 
 
Cash and cash equivalents
$ 37,537 
$ 19,824 
Marketable securities
39,837 
 
Real estate inventories
301,831 
194,083 
Contracts and accounts receivable
1,448 
548 
Other assets
2,306 
3,061 
Total Assets
382,959 
217,516 
Liabilities and Equity
 
 
Accounts payable and accrued liabilities
12,834 
10,995 
Notes payable
62,557 
57,368 
Total Liabilities
75,391 
68,363 
Commitments and contingencies (Note 7)
   
   
Equity:
 
 
Members equity
   
149,153 
Stockholders' equity:
 
 
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares outstanding as of June 30, 2013
   
   
Common stock, $0.01 par value, 500,000,000 shares authorized, 31,597,907 shares issued and outstanding as of June 30, 2013
316 
   
Additional paid-in capital
309,351 
 
Accumulated deficit
(1,917)
 
Accumulated other comprehensive loss
(182)
 
Total Stockholders' equity
307,568 
 
Total Equity
307,568 
149,153 
Total Liabilities and Equity
$ 382,959 
$ 217,516 
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Jun. 30, 2013
Dec. 31, 2012
Statement Of Financial Position [Abstract]
 
 
Preferred stock, par value
$ 0.01 
    
Preferred stock, shares authorized
50,000,000 
   
Preferred stock, shares outstanding
   
   
Common stock, par value
$ 0.01 
    
Common stock, shares authorized
500,000,000 
   
Common stock, shares issued
31,597,907 
 
Common stock, shares outstanding
31,597,907 
 
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Revenues:
 
 
 
 
Home sales
$ 47,457 
$ 7,736 
$ 71,314 
$ 12,324 
Fee building
3,630 
72 
7,661 
137 
Total revenues
51,087 
7,808 
78,975 
12,461 
Expenses:
 
 
 
 
Cost of home sales
38,318 
6,807 
57,767 
10,879 
Fee building
3,395 
46 
7,020 
111 
Sales and marketing
1,791 
797 
3,121 
1,290 
General and administrative
4,108 
1,473 
7,421 
2,651 
Total expenses
47,612 
9,123 
75,329 
14,931 
Income (loss) from operations
3,475 
(1,315)
3,646 
(2,470)
Other income (expense), net
89 
(2)
261 
10 
Income (loss) before income taxes
3,564 
(1,317)
3,907 
(2,460)
Provision for income taxes
(1,489)
 
(1,562)
 
Net income (loss)
$ 2,075 
$ (1,317)
$ 2,345 
$ (2,460)
Net income (loss) per share (Note 2)
 
 
 
 
Basic
$ 0.07 
$ (0.09)
$ 0.08 
$ (0.18)
Diluted
$ 0.07 
$ (0.09)
$ 0.08 
$ (0.18)
Weighted average number of shares (Note 2)
 
 
 
 
Basic
31,597,907 
14,572,743 
29,940,448 
13,668,616 
Diluted
31,614,646 
14,572,743 
29,953,625 
13,668,616 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Statement Of Income And Comprehensive Income [Abstract]
 
 
 
 
Net income (loss)
$ 2,075 
$ (1,317)
$ 2,345 
$ (2,460)
Unrealized loss on marketable securities available for sale:
 
 
 
 
Unrealized holding loss arising during the period
(264)
   
(163)
   
Reclassification adjustment included in net income
21 
   
(19)
   
Unrealized loss on marketable securities, net
(243)
   
(182)
   
Comprehensive income (loss)
$ 1,832 
$ (1,317)
$ 2,163 
$ (2,460)
CONSOLIDATED STATEMENT OF EQUITY (USD $)
In Thousands, except Share data
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Deficit [Member]
Accumulated Other Comprehensive Income [Member]
Total Stockholders' Equity [Member]
Members' Equity [Member]
Beginning Balance at Dec. 31, 2012
$ 149,153 
 
 
 
 
 
$ 149,153 
Beginning Balance, Number of Common Shares at Dec. 31, 2012
 
   
 
 
 
 
 
Net income
2,345 
 
 
2,345 
 
2,345 
 
Unrealized loss on available-for-sale marketable securities
(182)
 
 
 
(182)
(182)
Comprehensive income (loss)
2,163 
 
 
 
 
2,163 
 
Conversion of members' equity into common stock
 
216 
153,199 
(4,262)
 
149,153 
(149,153)
Conversion of members' equity into common stock, Number of Common Shares
 
21,597,907 
 
 
 
 
 
Issuance of common stock, net of issuance costs
155,408 
100 
155,308 
 
 
155,408 
 
Issuance of common stock, net of issuance costs, Number of Common Shares
 
10,000,000 
 
 
 
 
 
Stock-based compensation expense
844 
 
844 
 
 
844 
 
Ending Balance at Jun. 30, 2013
$ 307,568 
$ 316 
$ 309,351 
$ (1,917)
$ (182)
$ 307,568 
 
Ending Balance, Number of Common Shares at Jun. 30, 2013
31,597,907 
31,597,907 
 
 
 
 
 
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Cash flows from operating activities
 
 
Net income (loss)
$ 2,345 
$ (2,460)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
 
 
Depreciation and amortization
224 
139 
Amortization of stock-based compensation
844 
232 
Gain on sales of marketable securities
(19)
 
Changes in operating assets and liabilities:
 
 
Real estate inventories
(107,748)
(45,494)
Contracts and accounts receivable
(900)
(425)
Other assets
821 
(4)
Accounts payable and accrued liabilities
1,839 
(1,300)
Net cash used in operating activities
(102,594)
(49,312)
Cash flows from investing activities
 
 
Purchases of furniture and equipment
(290)
(61)
Purchases of marketable securities
(125,000)
 
Sales of marketable securities
85,000 
 
Net cash used in investing activities
(40,290)
(61)
Cash flows from financing activities
 
 
Net proceeds from issuance of common stock
155,408 
 
Cash contributions from member
   
14,000 
Financial advisory fee paid on capital raised
   
(490)
Borrowings from notes payable
53,850 
45,002 
Repayments of notes payable
(48,661)
(11,283)
Net cash provided by financing activities
160,597 
47,229 
Net increase (decrease) in cash and cash equivalents
17,713 
(2,144)
Cash and cash equivalents - beginning of period
19,824 
10,164 
Cash and cash equivalents - end of period
37,537 
8,020 
Supplemental disclosure of cash flow information
 
 
Interest paid, net of amounts capitalized
   
 
Organization and Basis of Presentation
Organization and Basis of Presentation
1. Organization and Basis of Presentation

Organization

TRI Pointe Homes, Inc. is engaged in the design, construction and sale of innovative single-family homes in planned communities in major metropolitan areas located throughout Southern and Northern California and Colorado.

Initial Public Offering

In January 2013, the Company completed its initial public offering (“IPO”) in which it issued and sold 10,000,000 shares of common stock at the public offering price of $17.00 per share. The company received proceeds of $155.4 million in net proceeds after deducting underwriting discounts and commissions of $11.9 million and other net offering expenses of $2.7 million. The offering also included 5,742,350 shares of our common stock sold by a selling stockholder for $90.8 million, in net proceeds after deducting underwriting discounts and commissions of $6.8 million. In preparation of the IPO, the Company reorganized from a Delaware limited liability company into a Delaware corporation and was renamed TRI Pointe Homes, Inc. Upon the close of the IPO and as of June 30, 2013, the Company had 31,597,907 common shares outstanding.

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts have been eliminated upon consolidation. Subsequent events have been evaluated through the date the financial statements were issued.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012. The accompanying unaudited condensed financial statements include all adjustments (consisting of normal recurring entries) necessary for the fair presentation of our results for the interim period presented. Results for the interim period are not necessarily indicative of the results to be expected for the full year.

Unless the context otherwise requires, the terms “we”, “us”, “our” and “the Company” refer to TRI Pointe Homes, Inc. (and its consolidated subsidiaries).

Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies. Accordingly, actual results could differ materially from these estimates.

Recently Issued Accounting Standards

On February 5, 2013, the FASB issued Accounting Standards Update 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”), which adds additional disclosure requirements for items reclassified out of accumulated other comprehensive income (loss). We adopted ASU 2013-02 during the six months ended June 30, 2013.

Earnings (Loss) Per Share
Earnings (Loss) Per Share
2. Earnings (Loss) Per Share

Basic and diluted earnings (loss) per share for the three and six months ended June 30, 2013 and 2012 give effect to the conversion of the Company’s members’ equity into common stock on January 30, 2013 as though the conversion had occurred as of the beginning of the reporting period or the original date of issuance, if later. The number of shares converted was based on the actual initial public offering price of $17.00 per share.

The following table sets forth the components used in the computation of basic and diluted earnings (loss) per share (dollars in thousands, except per share amounts):

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2013      2012     2013      2012  

Numerator:

          

Net income (loss)

   $ 2,075       $ (1,317   $ 2,345       $ (2,460
  

 

 

    

 

 

   

 

 

    

 

 

 

Denominator:

          

Basic weighted-average shares outstanding

     31,597,907         14,572,743        29,940,448         13,668,616   

Effect of dilutive shares:

          

Unvested restricted stock units(1)

     16,739         —          13,177         —     
  

 

 

    

 

 

   

 

 

    

 

 

 

Diluted weighted-average shares outstanding

     31,614,646         14,572,743        29,953,625         13,668,616   
  

 

 

    

 

 

   

 

 

    

 

 

 

Basic income (loss) per share

   $ 0.07       $ (0.09   $ 0.08       $ (0.18
  

 

 

    

 

 

   

 

 

    

 

 

 

Diluted income (loss) per share(1)

   $ 0.07       $ (0.09   $ 0.08       $ (0.18
  

 

 

    

 

 

   

 

 

    

 

 

 

 

(1) For periods with a net loss, no stock options or unvested restricted stock units are included in the dilution calculation as all options and unvested restricted stock units outstanding are considered antidilutive. For the three and six months ended June 30, 2013, no stock options were included in the diluted income per share calculation as the effect of their inclusion would be antidilutive. There were no outstanding options or non-vested shares in 2012.
Real Estate Inventories and Capitalized Interest
Real Estate Inventories and Capitalized Interest
3. Real Estate Inventories and Capitalized Interest

Real estate inventories consisted of the following (in thousands):

 

     June 30,      December 31,  
     2013      2012  

Inventories owned:

     

Deposits and pre-acquisition costs

   $ 14,931       $ 12,285   

Land held and land under development

     199,031         129,621   

Homes completed or under construction

     77,863         40,955   

Model homes

     10,006         11,222   
  

 

 

    

 

 

 
   $ 301,831       $ 194,083   
  

 

 

    

 

 

 

Model homes, homes completed, and homes under construction include all costs associated with home construction, including land, development, indirects, permits, and vertical construction. Land under development includes costs incurred during site development such as land, development, indirects, and permits. Land is classified as held for future development if no significant development has occurred.

 

Interest incurred, capitalized and expensed were as follows (in thousands):

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2013     2012     2013     2012  

Interest incurred

   $ 579      $ 475      $ 1,313      $ 647   
  

 

 

   

 

 

   

 

 

   

 

 

 

Interest expensed

     —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Capitalized interest in beginning inventory

   $ 1,842      $ 274      $ 1,364      $ 159   

Interest capitalized as a cost of inventory

     579        475        1,313        647   

Interest previously capitalized as a cost of inventory, included in cost of sales

     (502     (69     (758     (126
  

 

 

   

 

 

   

 

 

   

 

 

 

Capitalized interest in ending inventory

   $ 1,919      $ 680      $ 1,919      $ 680   
  

 

 

   

 

 

   

 

 

   

 

 

 

Interest is capitalized to real estate inventory during development and other qualifying activities. Interest that is capitalized to real estate inventory is included in cost of sales as related units are closed.

Warranty Reserves
Warranty Reserves
4. Warranty Reserves

Warranty reserves consisted of the following (in thousands):

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2013     2012     2013     2012  

Warranty reserves, beginning of period

   $ 1,575      $ 965      $ 1,593      $ 985   

Warranty reserves accrued

     621        75        728        122   

Warranty expenditures

     (257     (49     (382     (116
  

 

 

   

 

 

   

 

 

   

 

 

 

Warranty reserves, end of period

   $ 1,939      $ 991      $ 1,939      $ 991   
  

 

 

   

 

 

   

 

 

   

 

 

 

Estimated future direct warranty costs are accrued and charged to cost of sales in the period when the related homebuilding revenues are recognized. Amounts accrued are based upon historical experience rates. Indirect warranty overhead salaries and related costs are charged to the reserve in the period incurred. We assess the adequacy of our warranty accrual on a quarterly basis and adjust the amounts recorded if necessary. Our warranty accrual is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets.

Notes Payable
Notes Payable
5. Notes Payable

Notes payable consisted of the following (in thousands):

 

     June 30,
2013
     December 31,
2012
 

Revolving credit facility

   $ —         $ 6,855   

Acquisition and development loans

     37,181         37,996   

Construction loans

     25,376         12,517   
  

 

 

    

 

 

 
   $ 62,557       $ 57,368   
  

 

 

    

 

 

 

As of June 30, 2013, the Company had a secured revolving credit facility which has a maximum loan commitment of $30.0 million, an initial maturity date of April 19, 2014 and a final maturity date of April 19, 2015. The Company may borrow under its facility in the ordinary course of business to fund its operations, including its land development and home building activities. The amount the Company may borrow is subject to applicable borrowing base provisions and concentration limitations, which may also limit the amount available or outstanding under the facility. The facility is secured by deeds of trust on the real property and improvements thereon, and the borrowings are repaid with the net sales proceeds from the sales of homes, subject to a minimum release price. Interest rates charged under the facility include applicable LIBOR and prime rate pricing options, subject to a minimum interest rate floor. During the three months ended June 30, 2013, the interest rate floor was lowered from 5.0% to 3.75%. As of June 30, 2013, there was no outstanding principal balance and the Company had $28.1 million of availability under the facility after considering the borrowing base provisions and outstanding letters of credit.

 

The Company enters into secured acquisition and development loan agreements to purchase and develop land parcels. In addition, the Company enters into secured construction loan agreements for the construction of its model and production homes. The acquisition and development loans will be repaid as lots are released from the loans based upon a specific release price, as defined in each respective loan agreement. The construction loans will be repaid with proceeds from home closings based upon a specific release price, as defined in each respective loan agreement.

As of June 30, 2013, the Company had $56.9 million of aggregate acquisition and development loan commitments and $46.9 million of aggregate construction loan commitments, of which $37.2 million and $25.4 million was outstanding, respectively. The loans have maturity dates ranging from August 2013 to January 2016, including the six month extensions which are at our election (subject to certain conditions). The interest rate on certain loans were lowered during the three months ended June 30, 2013 and now bear interest at a rate based on applicable LIBOR or Prime Rate pricing options plus an applicable margin, with certain loans containing a minimum interest rate floor of 4.0%. As of June 30, 2013, the weighted average interest rate was 3.1% per annum.

As of December 31, 2012, the Company’s secured revolving credit facility with a maximum loan commitment of $30.0 million, of which $6.9 million was outstanding, had $21.4 million of availability and an interest rate of 5.5% per annum. In addition, the Company had $68.1 million of aggregate acquisition and development loan commitments and $25.4 million of aggregate construction loan commitments, of which $38.0 million and $12.5 million were outstanding, respectively. The loans had maturity dates ranging from August 2013 to February 2015, including the six month extensions which are at our election (subject to certain conditions) and bear interest at a rate based on applicable LIBOR or Prime Rate pricing options, with interest rate floors ranging from 4.0% to 6.0%. As of December 31, 2012, the weighted average interest rate was 5.2% per annum.

During the three months ended June 30, 2013 and 2012, the Company incurred interest of $579,000 and $475,000, respectively, related to its notes payable. During the six months ended June 30, 2013 and 2012, the Company incurred interest of $1.3 million and $647,000, respectively, related to its notes payable. All interest incurred during the three and six months ended June 30, 2013 and 2012 was capitalized to real estate inventories.

Under the revolving credit facility and construction notes payable, the Company is required to comply with certain financial covenants, including but not limited to (i) a minimum tangible net worth; (ii) a maximum total liabilities to tangible net worth ratio; and (iii) a minimum liquidity amount. The Company was in compliance with all financial covenants as of June 30, 2013 and December 31, 2012.

Fair Value Disclosures
Fair Value Disclosures
6. Fair Value Disclosures

ASC 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at measurement date and requires assets and liabilities carried at fair value to be classified and disclosed in the following three categories:

 

   

Level 1—Quoted prices for identical instruments in active markets

 

   

Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date

 

   

Level 3—Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date

 

The following table presents book values and estimated fair values of financial instruments (in thousands):

 

     Hierarchy      June 30, 2013      December 31, 2012  
        Cost      Fair
Value
     Cost      Fair
Value
 

Marketable Securities(1)

     Level 1       $ 40,019       $ 39,837       $ —         $ —     

Notes payable

              

Revolving credit facility(2)

     Level 3       $ —         $ —         $ 6,855       $ 6,855   

Acquisition and development loans(2)

     Level 3         37,181         37,181         37,996         37,996   

Construction loans(2)

     Level 3         25,376         25,376         12,517         12,517   
     

 

 

    

 

 

    

 

 

    

 

 

 

Total notes payable

      $ 62,557       $ 62,557       $ 57,368       $ 57,368   
     

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

Marketable securities consist of mutual fund equity securities with quoted prices in active markets. As of June 30, 2013, the Company’s marketable securities were treated as available-for-sale investments and changes in fair value were recorded as a component of accumulated other comprehensive income. As of June 30, 2013, the Company’s marketable securities were in an unrealized loss position of $(182,000). During the three and six months ended June 30, 2013, the Company realized a $(21,000) loss and $19,000 gain, respectively, from the sale of marketable securities that were recorded to other income (expense), net in the consolidated statements of operations. The Company did not hold any marketable securities as of December 31, 2012.

(2) 

Estimated fair values of the outstanding revolving credit facility, acquisition and development loans, and construction loans at June 30, 2013 and December 31, 2012 were based on cash flow models discounted at market interest rates that considered underlying risks of the debt. Due to the short term nature of the revolving credit facility, acquisition and development loans and construction loans, book value approximated fair value at June 30, 2013 and December 31, 2012.

Nonfinancial assets and liabilities include items such as inventory and long lived assets that are measured at fair value when acquired and resulting from impairment, if deemed necessary. During the three and six months ended June 30, 2013 and 2012, the Company did not record any fair value adjustments to those financial and nonfinancial assets and liabilities measured at fair value on a nonrecurring basis.

Commitments and Contingencies
Commitments and Contingencies
7. Commitments and Contingencies

Lawsuits, claims and proceedings have been or may be instituted or asserted against us in the normal course of business, including actions brought on behalf of various classes of claimants. We are also subject to local, state and federal laws and regulations related to land development activities, house construction standards, sales practices, employment practices and environmental protection. As a result, we are subject to periodic examinations or inquiry by agencies administering these laws and regulations.

We record a reserve for potential legal claims and regulatory matters when they are probable of occurring and a potential loss is reasonably estimable. We accrue for these matters based on facts and circumstances specific to each matter and revise these estimates when necessary.

In view of the inherent difficulty of predicting outcomes of legal claims and related contingencies, we generally cannot predict their ultimate resolution, related timing or eventual loss. If our evaluations indicate loss contingencies that could be material are not probable, but are reasonably possible, we will disclose their nature with an estimate of possible range of losses or a statement that such loss is not reasonably estimable. At June 30, 2013 and December 31, 2012, the Company did not have any accruals for asserted or unasserted matters.

We obtain surety bonds in the normal course of business to ensure completion of certain infrastructure improvements of our projects. As of June 30, 2013 and December 31, 2012, the Company had outstanding surety bonds totaling $21.1 million and $11.9 million, respectively. The beneficiaries of the bonds are various municipalities. In the unlikely event that any such surety bond issued by third parties are called because the required improvements are not completed, the Company could be obligated to reimburse the issuer of the bond.

Stock-Based Compensation
Stock-Based Compensation
8. Stock-Based Compensation

The Company’s stock compensation plan, the 2013 Long-Term Incentive Plan (“2013 Incentive Plan”), was adopted by our board of directors in January 2013. The 2013 Incentive Plan provides for the grant of equity-based awards, including options to purchase shares of common stock, stock appreciation rights, common stock, restricted stock, restricted stock units and performance awards. The 2013 Incentive Plan will automatically expire on the tenth anniversary of its effective date. Our board of directors may terminate or amend the 2013 Incentive Plan at any time, subject to any requirement of stockholder approval required by applicable law, rule or regulation.

The number of shares of our common stock that may be issued under the 2013 Incentive Plan is 2,527,833 shares. To the extent that shares of our common stock subject to an outstanding option, stock appreciation right, stock award or performance award granted under the 2013 Incentive Plan or any predecessor plan are not issued or delivered by reason of the expiration, termination, cancellation or forfeiture of such award or the settlement of such award in cash, then such shares of our common stock generally shall again be available under our the 2013 Incentive Plan.

The Company has issued stock option awards and restricted stock unit awards against the 2013 Incentive Plan. The exercise price of our stock-based awards may not be less than the market value of our common stock on the date of grant. The fair value for stock options is established at the date of grant using the Black-Scholes model for time based vesting awards. Our stock option awards typically vest over a one to three year period and expire ten years from the date of grant. Our restricted stock awards are valued based on the closing price of our common stock on the date of grant and typically vest over a one to three year period.

On January 31, 2013, the Company granted an aggregate of 282,201 stock options, with an exercise price per share of $17, and 71,176 restricted stock units to members of the management team, officers and directors. On March 1, 2013, the Company granted an aggregate of 72,300 restricted stock units to its employees. Each of the aforementioned awards vest ratably annually on the anniversary of the grant date over a three year period. On March 21, 2013, the Company granted an aggregate of 3,699 stock options with an exercise price per share of $19.95 and 4,512 restricted stock units to members of our independent Board of Directors as part of their annual compensation as directors. 100% of the awards cliff vest on the one year anniversary of the grant date. There were no stock option exercises or restricted stock unit vesting during the three and six months ended June 30, 2013. There were 800 restricted stock units that were forfeited during the six months ended June 30, 2013.

On September 24, 2010, the Company granted equity based incentive units to management. In connection with the IPO, the incentive units converted into shares of common stock. The recipients of the equity based incentive units have all the rights of a stockholder, including the rights to vote those shares and receive any dividends or distributions made with respect to those shares and any shares or other property received in respect of those shares; provided, however, any non-cash dividend or distribution with respect to the common stock shall be subject to the same vesting provisions as the incentive units. The vesting terms of the equity based incentive units are as follows: (1)18.75% of such units vested, subject to limitation in (3) below on the date following the first-year anniversary of the date of such officer’s employment; (2) 56.25% of such units vest, subject to limitation in (3) below in equal quarterly installments between the first and fourth-year anniversary of the date of such officer’s employment; (3) 25% of the awards granted in (1) and (2) will vest upon a liquidity event as defined; and (4) 25% of such units will be converted into a number of shares of restricted stock prior to a liquidity event, as defined. The grant-date fair value of the equity based incentive units granted during the period ended December 31, 2010 was $3.3 million.

The following table presents compensation expense recognized related to all stock-based awards (in thousands):

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2013      2012      2013      2012  

Stock options

   $ 170       $ —         $ 279       $ —     

Restricted stock units

     231         —           333         —     

Equity based incentive units

     116         116         232         232   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total stock-based compensation

   $ 517       $ 116       $ 844       $ 232   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

The following table presents the remaining unrecognized compensation expense related to all stock-based awards and the weighted term over which the expense will be recognized (dollars in thousands):

 

     June 30, 2013  
     Unrecognized
Expense
     Weighted
Average
Period  (Years)
 

Stock options

   $ 1,702         2.6   

Restricted stock units

     2,171         2.6   

Equity based incentive units

     2,031         1.3   
  

 

 

    

 

 

 

Total stock-based compensation

   $ 5,904         1.5   
  

 

 

    

 

 

 

 

Income Taxes
Income Taxes
9. Income Taxes

The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires an asset and liability approach for measuring deferred taxes based on temporary differences between the financial statements and tax bases of assets and liabilities existing at each balance sheet date using enacted tax rates for the years in which taxes are expected to be paid or recovered. Further, we assess our deferred tax asset to determine whether all or any portion of the asset is more likely than not unrealizable under ASC 740. We are required to establish a valuation allowance for any portion of the asset we conclude is more likely than not to be unrealizable. Our assessment considers, among other things, the nature, frequency and severity of our current and cumulative losses, forecasts of our future taxable income, the duration of statutory carryforward periods and tax planning alternatives.

As discussed in Note 1, during 2012 and for the first 30 calendar days of 2013, the Company was a Delaware limited liability company which was treated as partnership for income tax purposes and was subject to certain minimal taxes and fees; however, income taxes on taxable income or losses realized by the Company were the obligation of the members. The Company has concluded that there were no significant uncertain tax positions requiring recognition in its financial statements, nor has the Company been assessed interest or penalties by any major tax jurisdictions related to the first 30 calendar days of 2013 or fiscal 2012.

On January 30, 2013, the Company reorganized from a Delaware limited liability company into a Delaware corporation and was renamed TRI Pointe Homes, Inc. As result of this change in tax status, the Company recorded $906,000 of deferred tax assets related to various temporary differences. We have recorded a full valuation allowance on all of our deferred assets, primarily due to our cumulative loss position. If the Company were to move into a cumulative income position, and based on other considerations, we may be able to reverse a portion or all of the valuation allowance which could benefit future periods.

The Company has recorded a tax provision of $1.5 million for the three months ended June 30, 2013 based on an effective tax rate of 42%. For six months ended June 30, 2013, the Company recorded a tax provision of $1.6 million based on an effective tax rate of 42% on the pretax income generated for the period from January 31, 2013 to June 30, 2013.

Segment Information
Segment Information
10. Segment Information

The Company’s operations are organized into two reportable segments: homebuilding and construction services. In accordance with ASC 280, Segment Reporting, in determining the most appropriate reportable segments, we considered similar economic and other characteristics, including product types, average selling prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, and underlying demand and supply.

Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented. Financial information relating to reportable segments was as follows (in thousands):

 

     Three Months Ended      Six Months Ended  
     June 30,      June 30,  
     2013      2012      2013      2012  

Revenues

           

Homebuilding

   $ 47,457       $ 7,736       $ 71,314       $ 12,324   

Fee building

     3,630         72         7,661         137   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 51,087       $ 7,808       $ 78,975       $ 12,461   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit

           

Homebuilding

   $ 9,139       $ 929       $ 13,547       $ 1,445   

Fee building

     235         26         641         26   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 9,374       $ 955       $ 14,188       $ 1,471   
  

 

 

    

 

 

    

 

 

    

 

 

 
                   June 30,      December 31,  
                   2013      2012  

Assets

           

Homebuilding

         $ 381,708       $ 216,667   

Fee building

           1,251         849   
        

 

 

    

 

 

 

Total

         $ 382,959       $ 217,516   
        

 

 

    

 

 

 

 

Subsequent Events
Subsequent Events
11. Subsequent Events

Subsequent to June 30, 2013, the Company entered into a $125 million three-year secured revolving credit facility (the “$125 million Revolving Credit Facility”). We expect to use the $125 million Revolving Credit Facility primarily to fund the acquisition and development of lots and the construction of homes. Borrowings under the $125 million Revolving Credit Facility are secured by a first priority lien on borrowing base properties and will be subject to, among other things, a borrowing base formula. In addition to customary representations and warranties, affirmative and negative covenants and events of default, the $125 million Revolving Credit Facility contains specific financial covenants requiring the Company to maintain on a quarterly basis. The interest rate on borrowings will be at a rate based on LIBOR plus an applicable margin, ranging from 250 to 370 basis points depending on the Company’s leverage ratio.

Organization and Basis of Presentation (Policies)

Organization

TRI Pointe Homes, Inc. is engaged in the design, construction and sale of innovative single-family homes in planned communities in major metropolitan areas located throughout Southern and Northern California and Colorado.

Initial Public Offering

In January 2013, the Company completed its initial public offering (“IPO”) in which it issued and sold 10,000,000 shares of common stock at the public offering price of $17.00 per share. The company received proceeds of $155.4 million in net proceeds after deducting underwriting discounts and commissions of $11.9 million and other net offering expenses of $2.7 million. The offering also included 5,742,350 shares of our common stock sold by a selling stockholder for $90.8 million, in net proceeds after deducting underwriting discounts and commissions of $6.8 million. In preparation of the IPO, the Company reorganized from a Delaware limited liability company into a Delaware corporation and was renamed TRI Pointe Homes, Inc. Upon the close of the IPO and as of June 30, 2013, the Company had 31,597,907 common shares outstanding.

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts have been eliminated upon consolidation. Subsequent events have been evaluated through the date the financial statements were issued.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012. The accompanying unaudited condensed financial statements include all adjustments (consisting of normal recurring entries) necessary for the fair presentation of our results for the interim period presented. Results for the interim period are not necessarily indicative of the results to be expected for the full year.

Unless the context otherwise requires, the terms “we”, “us”, “our” and “the Company” refer to TRI Pointe Homes, Inc. (and its consolidated subsidiaries).

Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies. Accordingly, actual results could differ materially from these estimates.

Recently Issued Accounting Standards

On February 5, 2013, the FASB issued Accounting Standards Update 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”), which adds additional disclosure requirements for items reclassified out of accumulated other comprehensive income (loss). We adopted ASU 2013-02 during the six months ended June 30, 2013.

ASC 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at measurement date and requires assets and liabilities carried at fair value to be classified and disclosed in the following three categories:

 

   

Level 1—Quoted prices for identical instruments in active markets

 

   

Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date

 

   

Level 3—Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date

In accordance with ASC 280, Segment Reporting, in determining the most appropriate reportable segments, we considered similar economic and other characteristics, including product types, average selling prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, and underlying demand and supply.

Earnings (Loss) Per Share (Tables)
Computation of Basic and Diluted Earnings (Loss) Per Share

The following table sets forth the components used in the computation of basic and diluted earnings (loss) per share (dollars in thousands, except per share amounts):

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2013      2012     2013      2012  

Numerator:

          

Net income (loss)

   $ 2,075       $ (1,317   $ 2,345       $ (2,460
  

 

 

    

 

 

   

 

 

    

 

 

 

Denominator:

          

Basic weighted-average shares outstanding

     31,597,907         14,572,743        29,940,448         13,668,616   

Effect of dilutive shares:

          

Unvested restricted stock units(1)

     16,739         —          13,177         —     
  

 

 

    

 

 

   

 

 

    

 

 

 

Diluted weighted-average shares outstanding

     31,614,646         14,572,743        29,953,625         13,668,616   
  

 

 

    

 

 

   

 

 

    

 

 

 

Basic income (loss) per share

   $ 0.07       $ (0.09   $ 0.08       $ (0.18
  

 

 

    

 

 

   

 

 

    

 

 

 

Diluted income (loss) per share(1)

   $ 0.07       $ (0.09   $ 0.08       $ (0.18
  

 

 

    

 

 

   

 

 

    

 

 

 

 

(1) For periods with a net loss, no stock options or unvested restricted stock units are included in the dilution calculation as all options and unvested restricted stock units outstanding are considered antidilutive. For the three and six months ended June 30, 2013, no stock options were included in the diluted income per share calculation as the effect of their inclusion would be antidilutive. There were no outstanding options or non-vested shares in 2012.
Real Estate Inventories and Capitalized Interest (Tables)

Real estate inventories consisted of the following (in thousands):

 

     June 30,      December 31,  
     2013      2012  

Inventories owned:

     

Deposits and pre-acquisition costs

   $ 14,931       $ 12,285   

Land held and land under development

     199,031         129,621   

Homes completed or under construction

     77,863         40,955   

Model homes

     10,006         11,222   
  

 

 

    

 

 

 
   $ 301,831       $ 194,083   
  

 

 

    

 

 

 

Interest incurred, capitalized and expensed were as follows (in thousands):

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2013     2012     2013     2012  

Interest incurred

   $ 579      $ 475      $ 1,313      $ 647   
  

 

 

   

 

 

   

 

 

   

 

 

 

Interest expensed

     —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Capitalized interest in beginning inventory

   $ 1,842      $ 274      $ 1,364      $ 159   

Interest capitalized as a cost of inventory

     579        475        1,313        647   

Interest previously capitalized as a cost of inventory, included in cost of sales

     (502     (69     (758     (126
  

 

 

   

 

 

   

 

 

   

 

 

 

Capitalized interest in ending inventory

   $ 1,919      $ 680      $ 1,919      $ 680   
  

 

 

   

 

 

   

 

 

   

 

 

 
Warranty Reserves (Tables)
Schedule of Warranty Reserves

Warranty reserves consisted of the following (in thousands):

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2013     2012     2013     2012  

Warranty reserves, beginning of period

   $ 1,575      $ 965      $ 1,593      $ 985   

Warranty reserves accrued

     621        75        728        122   

Warranty expenditures

     (257     (49     (382     (116
  

 

 

   

 

 

   

 

 

   

 

 

 

Warranty reserves, end of period

   $ 1,939      $ 991      $ 1,939      $ 991   
  

 

 

   

 

 

   

 

 

   

 

 

 
Notes Payable (Tables)
Components of Notes Payable

Notes payable consisted of the following (in thousands):

 

     June 30,
2013
     December 31,
2012
 

Revolving credit facility

   $ —         $ 6,855   

Acquisition and development loans

     37,181         37,996   

Construction loans

     25,376         12,517   
  

 

 

    

 

 

 
   $ 62,557       $ 57,368   
  

 

 

    

 

 

 
Fair Value Disclosures (Tables)
Book Values and Estimated Fair Values of Financial Instruments

The following table presents book values and estimated fair values of financial instruments (in thousands):

 

     Hierarchy      June 30, 2013      December 31, 2012  
        Cost      Fair
Value
     Cost      Fair
Value
 

Marketable Securities(1)

     Level 1       $ 40,019       $ 39,837       $ —         $ —     

Notes payable

              

Revolving credit facility(2)

     Level 3       $ —         $ —         $ 6,855       $ 6,855   

Acquisition and development loans(2)

     Level 3         37,181         37,181         37,996         37,996   

Construction loans(2)

     Level 3         25,376         25,376         12,517         12,517   
     

 

 

    

 

 

    

 

 

    

 

 

 

Total notes payable

      $ 62,557       $ 62,557       $ 57,368       $ 57,368   
     

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

Marketable securities consist of mutual fund equity securities with quoted prices in active markets. As of June 30, 2013, the Company’s marketable securities were treated as available-for-sale investments and changes in fair value were recorded as a component of accumulated other comprehensive income. As of June 30, 2013, the Company’s marketable securities were in an unrealized loss position of $(182,000). During the three and six months ended June 30, 2013, the Company realized a $(21,000) loss and $19,000 gain, respectively, from the sale of marketable securities that were recorded to other income (expense), net in the consolidated statements of operations. The Company did not hold any marketable securities as of December 31, 2012.

(2) 

Estimated fair values of the outstanding revolving credit facility, acquisition and development loans, and construction loans at June 30, 2013 and December 31, 2012 were based on cash flow models discounted at market interest rates that considered underlying risks of the debt. Due to the short term nature of the revolving credit facility, acquisition and development loans and construction loans, book value approximated fair value at June 30, 2013 and December 31, 2012.

Stock-Based Compensation (Tables)

The following table presents compensation expense recognized related to all stock-based awards (in thousands):

 

     Three Months Ended      Six Months Ended  
     June 30,      June 30,  
     2013      2012      2013      2012  

Stock options

   $ 170       $ —         $ 279       $ —     

Restricted stock units

     231         —           333         —     

Equity based incentive units

     116         116         232         232   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total stock-based compensation

   $ 517       $ 116       $ 844       $ 232   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

The following table presents the remaining unrecognized compensation expense related to all stock-based awards and the weighted term over which the expense will be recognized (dollars in thousands):

 

     June 30, 2013  
     Unrecognized
Expense
     Weighted
Average
Period  (Years)
 

Stock options

   $ 1,702         2.6   

Restricted stock units

     2,171         2.6   

Equity based incentive units

     2,031         1.3   
  

 

 

    

 

 

 

Total stock-based compensation

   $ 5,904         1.5   
  

 

 

    

 

 

 

 

Segment Information (Tables)
Summary of Financial Information Relating to Reportable Segments
 Financial information relating to reportable segments was as follows (in thousands):

 

     Three Months Ended      Six Months Ended  
     June 30,      June 30,  
     2013      2012      2013      2012  

Revenues

           

Homebuilding

   $ 47,457       $ 7,736       $ 71,314       $ 12,324   

Fee building

     3,630         72         7,661         137   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 51,087       $ 7,808       $ 78,975       $ 12,461   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit

           

Homebuilding

   $ 9,139       $ 929       $ 13,547       $ 1,445   

Fee building

     235         26         641         26   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 9,374       $ 955       $ 14,188       $ 1,471   
  

 

 

    

 

 

    

 

 

    

 

 

 
                   June 30,      December 31,  
                   2013      2012  

Assets

           

Homebuilding

         $ 381,708       $ 216,667   

Fee building

           1,251         849   
        

 

 

    

 

 

 

Total

         $ 382,959       $ 217,516   
        

 

 

    

 

 

 

 

Organization and Basis of Presentation - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
1 Months Ended
Jan. 31, 2013
Jun. 30, 2013
Organization And Basis Of Presentation [Line Items]
 
 
Common stock shares issued and sold
 
31,597,907 
Net proceeds from common stock sold
$ 90.8 
 
Underwriting discounts and commissions
6.8 
 
Common stock shares sold
5,742,350 
 
Common stock, outstanding shares
 
31,597,907 
Initial public offering [Member]
 
 
Organization And Basis Of Presentation [Line Items]
 
 
Common stock shares issued and sold
10,000,000 
 
Common stock public offering price
$ 17.00 
 
Net proceeds from common stock sold
155.4 
 
Underwriting discounts and commissions
11.9 
 
Net offering expenses
$ 2.7 
 
Common stock, outstanding shares
 
31,597,907 
Earnings (Loss) Per Share - Additional Information (Detail) (Initial public offering [Member], USD $)
Jan. 31, 2013
Initial public offering [Member]
 
Class of Stock [Line Items]
 
Common stock public offering price
$ 17.00 
Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings (Loss) Per Share (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Numerator:
 
 
 
 
Net income (loss)
$ 2,075 
$ (1,317)
$ 2,345 
$ (2,460)
Denominator:
 
 
 
 
Basic weighted-average shares outstanding
31,597,907 
14,572,743 
29,940,448 
13,668,616 
Effect of dilutive shares:
 
 
 
 
Unvested restricted stock units
16,739 
 
13,177 
 
Diluted weighted-average shares outstanding
31,614,646 
14,572,743 
29,953,625 
13,668,616 
Basic income (loss) per share
$ 0.07 
$ (0.09)
$ 0.08 
$ (0.18)
Diluted income (loss) per share
$ 0.07 
$ (0.09)
$ 0.08 
$ (0.18)
Real Estate Inventories and Capitalized Interest - Summary of Real Estate Inventories (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Inventories owned:
 
 
Deposits and pre-acquisition costs
$ 14,931 
$ 12,285 
Land held and land under development
199,031 
129,621 
Homes completed or under construction
77,863 
40,955 
Model homes
10,006 
11,222 
Total real estate inventories
$ 301,831 
$ 194,083 
Real Estate Inventories and Capitalized Interest - Summary of Interest Incurred, Capitalized and Expensed (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Real Estate Inventory, Capitalized Interest Costs [Roll Forward]
 
 
 
 
Interest incurred
$ 579 
$ 475 
$ 1,313 
$ 647 
Interest expensed
   
 
   
 
Capitalized interest in beginning inventory
1,842 
274 
1,364 
159 
Interest capitalized as a cost of inventory
579 
475 
1,313 
647 
Interest previously capitalized as a cost of inventory, included in cost of sales
(502)
(69)
(758)
(126)
Capitalized interest in ending inventory
$ 1,919 
$ 680 
$ 1,919 
$ 680 
Warranty Reserves - Schedule of Warranty Reserves (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Movement in Standard Product Warranty Accrual [Roll Forward]
 
 
 
 
Warranty reserves, beginning of period
$ 1,575 
$ 965 
$ 1,593 
$ 985 
Warranty reserves accrued
621 
75 
728 
122 
Warranty expenditures
(257)
(49)
(382)
(116)
Warranty reserves, end of period
$ 1,939 
$ 991 
$ 1,939 
$ 991 
Notes Payable - Components of Notes Payable (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Debt Instrument [Line Items]
 
 
Notes payable
$ 62,557 
$ 57,368 
Acquisition and development loans [Member]
 
 
Debt Instrument [Line Items]
 
 
Notes payable
37,181 
37,996 
Construction loans [Member]
 
 
Debt Instrument [Line Items]
 
 
Notes payable
25,376 
12,517 
Revolving credit facility [Member]
 
 
Debt Instrument [Line Items]
 
 
Notes payable
 
$ 6,855 
Notes Payable - Additional Information (Detail) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2013
Dec. 31, 2012
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Debt Instrument [Line Items]
 
 
 
 
 
Loan commitments
$ 30,000,000 
$ 30,000,000 
 
$ 30,000,000 
 
Initial maturity date
 
Aug. 01, 2013 
 
Aug. 01, 2013 
 
Final maturity date
 
Feb. 28, 2015 
 
Jan. 31, 2016 
 
Available secured revolving credit facility
28,100,000 
21,400,000 
 
28,100,000 
 
Loan commitments outstanding
62,557,000 
57,368,000 
 
62,557,000 
 
Weighted average interest rate
3.10% 
5.20% 
 
3.10% 
 
Interest rate on credit facility
 
5.50% 
 
 
 
Interest capitalized to real estate inventories
579,000 
 
475,000 
1,313,000 
647,000 
Minimum [Member]
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
LIBOR interest rate
3.75% 
4.00% 
 
4.00% 
 
Maximum [Member]
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
LIBOR interest rate
5.00% 
6.00% 
 
 
 
Notes payable [Member]
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
Interest capitalized to real estate inventories
579,000 
 
475,000 
1,300,000 
647,000 
Acquisition and development loans [Member]
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
Loan commitments
56,900,000 
68,100,000 
 
56,900,000 
 
Loan commitments outstanding
37,181,000 
37,996,000 
 
37,181,000 
 
Construction loans [Member]
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
Loan commitments
46,900,000 
25,400,000 
 
46,900,000 
 
Loan commitments outstanding
25,376,000 
12,517,000 
 
25,376,000 
 
Revolving credit facility [Member]
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
Initial maturity date
 
 
 
Apr. 19, 2014 
 
Final maturity date
 
 
 
Apr. 19, 2015 
 
Loan commitments outstanding
 
$ 6,855,000 
 
 
 
Fair Value Disclosures - Book Values and Estimated Fair Values of Financial Instruments (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Notes payable
 
 
Notes payable, Cost
$ 62,557 
$ 57,368 
Notes payable, Fair Value
62,557 
57,368 
Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Marketable Securities, Cost
40,019 
 
Notes payable
 
 
Marketable Securities, Fair Value
39,837 
 
Revolving credit facility [Member] |
Level 3 [Member]
 
 
Notes payable
 
 
Notes payable, Cost
 
6,855 
Notes payable, Fair Value
 
6,855 
Acquisition and development loans [Member]
 
 
Notes payable
 
 
Notes payable, Cost
37,181 
37,996 
Acquisition and development loans [Member] |
Level 3 [Member]
 
 
Notes payable
 
 
Notes payable, Cost
37,181 
37,996 
Notes payable, Fair Value
37,181 
37,996 
Construction loans [Member]
 
 
Notes payable
 
 
Notes payable, Cost
25,376 
12,517 
Construction loans [Member] |
Level 3 [Member]
 
 
Notes payable
 
 
Notes payable, Cost
25,376 
12,517 
Notes payable, Fair Value
$ 25,376 
$ 12,517 
Fair Value Disclosures - Book Values and Estimated Fair Values of Financial Instruments (Parenthetical) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Fair Value Disclosures [Abstract]
 
 
 
 
Unrealized loss on marketable securities
$ (243)
    
$ (182)
    
Gain (loss) on sale of marketable securities
$ (21)
 
$ 19 
 
Commitments and Contingencies - Additional Information (Detail) (USD $)
Jun. 30, 2013
Dec. 31, 2012
Commitment And Contingencies [Line Items]
 
 
Accruals for asserted or unasserted matters
$ 0 
$ 0 
Surety bonds [Member]
 
 
Commitment And Contingencies [Line Items]
 
 
Outstanding surety bonds
$ 21,100,000 
$ 11,900,000 
Stock-Based Compensation - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
6 Months Ended 1 Months Ended 6 Months Ended 1 Months Ended 1 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2013
Stock options [Member]
Jan. 31, 2013
Stock options [Member]
Management team, officers and directors [Member]
Mar. 21, 2013
Stock options [Member]
Board of Directors [Member]
Jun. 30, 2013
Restricted stock units [Member]
Jan. 31, 2013
Restricted stock units [Member]
Management team, officers and directors [Member]
Mar. 1, 2013
Restricted stock units [Member]
Employees [Member]
Mar. 21, 2013
Restricted stock units [Member]
Board of Directors [Member]
Sep. 24, 2010
Equity based incentive units [Member]
Dec. 31, 2010
Equity based incentive units [Member]
Sep. 24, 2010
Equity based incentive units [Member]
First-year anniversary [Member]
Sep. 24, 2010
Equity based incentive units [Member]
First and fourth-year anniversary [Member]
Jun. 30, 2013
Minimum [Member]
Stock options [Member]
Jun. 30, 2013
Minimum [Member]
Restricted stock units [Member]
Jun. 30, 2013
Maximum [Member]
Stock options [Member]
Jun. 30, 2013
Maximum [Member]
Restricted stock units [Member]
Jun. 30, 2013
2013 Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,527,833 
Vesting period
 
 
 
 
 
 
 
 
 
 
 
 
1 year 
1 year 
3 years 
3 years 
 
Expiration from the date of grant
 
10 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate stock options granted
 
 
282,201 
3,699 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate stock options granted exercise price per share
 
 
$ 17.00 
$ 19.95 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate restricted stock units granted
 
 
 
 
 
71,176 
72,300 
4,512 
 
 
 
 
 
 
 
 
 
Percentage of awards cliff vest
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of restricted stock units forfeited
 
 
 
 
800 
 
 
 
 
 
 
 
 
 
 
 
 
Vesting terms description
 
 
 
 
 
 
 
 
The vesting terms of the equity based incentive units are as follows: (1)18.75% of such units vested, subject to limitation in (3) below on the date following the first-year anniversary of the date of such officer’s employment; (2) 56.25% of such units vest, subject to limitation in (3) below in equal quarterly installments between the first and fourth-year anniversary of the date of such officer’s employment; (3) 25% of the awards granted in (1) and (2) will vest upon a liquidity event as defined; and (4) 25% of such units will be converted into a number of shares of restricted stock prior to a liquidity event, as defined 
 
 
 
 
 
 
 
 
Equity based incentive granted
 
 
 
 
 
 
 
 
 
$ 3.3 
 
 
 
 
 
 
 
Vested units
 
 
 
 
 
 
 
 
 
 
18.75% 
56.25% 
 
 
 
 
 
Awards granted
 
 
 
 
 
 
 
 
25.00% 
 
 
 
 
 
 
 
 
Income Taxes - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2013
Income Tax Disclosure [Abstract]
 
 
Deferred tax assets
$ 906 
$ 906 
Provision for income tax
$ 1,489 
$ 1,562 
Effective tax rate on the pretax income
42.00% 
42.00% 
Segment Information - Additional Information (Detail)
6 Months Ended
Jun. 30, 2013
Segment
Segment Reporting [Abstract]
 
Number of reportable segments
Segment Information - Summary of Financial Information Relating to Reportable Segments (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Dec. 31, 2012
Revenues
 
 
 
 
 
Total revenues
$ 51,087 
$ 7,808 
$ 78,975 
$ 12,461 
 
Gross profit
 
 
 
 
 
Gross profit
9,374 
955 
14,188 
1,471 
 
Assets
 
 
 
 
 
Assets
382,959 
 
382,959 
 
217,516 
Homebuilding [Member]
 
 
 
 
 
Revenues
 
 
 
 
 
Total revenues
47,457 
7,736 
71,314 
12,324 
 
Gross profit
 
 
 
 
 
Gross profit
9,139 
929 
13,547 
1,445 
 
Assets
 
 
 
 
 
Assets
381,708 
 
381,708 
 
216,667 
Fee building [Member]
 
 
 
 
 
Revenues
 
 
 
 
 
Total revenues
3,630 
72 
7,661 
137 
 
Gross profit
 
 
 
 
 
Gross profit
235 
26 
641 
26 
 
Assets
 
 
 
 
 
Assets
$ 1,251 
 
$ 1,251 
 
$ 849 
Subsequent Events - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 3 Months Ended 1 Months Ended
Jun. 30, 2013
Dec. 31, 2012
Jun. 30, 2013
Minimum [Member]
Dec. 31, 2012
Minimum [Member]
Jun. 30, 2013
Minimum [Member]
Jun. 30, 2013
Maximum [Member]
Dec. 31, 2012
Maximum [Member]
Aug. 13, 2013
Subsequent Event [Member]
Revolving credit facility [Member]
Aug. 13, 2013
Subsequent Event [Member]
Revolving credit facility [Member]
Minimum [Member]
Aug. 13, 2013
Subsequent Event [Member]
Revolving credit facility [Member]
Maximum [Member]
Subsequent Event [Line Items]
 
 
 
 
 
 
 
 
 
 
Maximum secured revolving credit facility
$ 30.0 
$ 30.0 
 
 
 
 
 
$ 125.0 
 
 
Revolving credit facility expiration period
 
 
 
 
 
 
 
3 years 
 
 
Interest rate on borrowings
 
 
 
 
 
 
 
LIBOR plus an applicable margin, ranging from 250 to 370 basis points 
 
 
Interest rate on borrowings, applicable margin
 
 
3.75% 
4.00% 
4.00% 
5.00% 
6.00% 
 
2.50% 
3.70%