TRI Pointe Homes Reports 2012 Fourth Quarter and Full Year Results

  TRI Pointe Homes Reports 2012 Fourth Quarter and Full Year Results

                - Record Revenue and Earnings Growth in 2012 -

      - Strong Order and Backlog Growth in the Fourth Quarter of 2012 -

        - Increased Lots Owned and Controlled to over 2,100 in 2013 -

Business Wire

IRVINE, Calif. -- March 28, 2013

TRI Pointe Homes, Inc. (NYSE: TPH) today announced record results for the
fourth quarter and year ended December 31, 2012.

2012 Fourth Quarter Highlights and Comparisons to 2011 Fourth Quarter

  *Net income was $6.4 million compared to a net loss of $(1.4) million
  *New home orders increased to 75 compared to 8
  *Active selling communities averaged 7.0 compared to 2.5

       *New home orders per average selling community were 10.7 orders (3.57
         monthly) compared to 3.2 orders (1.07 monthly), and a sequential
         improvement from 10.6 orders (3.5 monthly) for the 2012 third quarter
       *Cancellation rate improved to 16%

  *Backlog of 68 homes with a dollar value of $33.3 million

       *Average sales price in backlog grew 16% to $490,000

  *Home sales revenue was $55.2 million compared to $4.2 million

       *New homes delivered increased to 89 compared to 10
       *Average sales price of homes delivered grew 46% to $620,000

  *Homebuilding gross margin percentage improved to 20.2% compared to 13.6%
  *Acquired 312 lots valued at $68.2 million and controlled an additional 180
    lots

2012 Fiscal Year Highlights and Comparisons to 2011 Fiscal Year

  *Net income was $2.5 million compared to a net loss of $(4.6) million
  *New home orders increased to 204 compared to 42
  *Home sales revenue was $77.5 million compared to $13.5 million

       *New homes delivered increased to 144 compared to 36
       *Average sales price of homes delivered grew 43% to $538,000

Recent Land Activity in the First Quarter 2013

  *Acquired 301 lots valued at $38.4 million and controlled an additional 410
    lots
  *Own or control over 2,100 lots as compared to 1,550 as of December 31,
    2012, a 35% increase

On January 31, 2013, the Company completed its initial public offering
(“IPO”), in which it sold 10,000,000 shares of common stock for $17 per share,
raising net proceeds of approximately $155.6 million. After the close of the
IPO, the Company had 31,597,907 common shares outstanding.

Douglas F. Bauer, Chief Executive Officer stated, “2012 was a highly
productive year of growth for TRI Pointe Homes that was highlighted by our
strong fourth quarter operating results reflecting improving housing
conditions and market acceptance of our well located communities in Northern
and Southern California. Having established our Company less than four years
ago to capitalize on the unique market opportunities of the housing recovery
in California, we are quite pleased with our progress. We have expanded our
business in existing markets in California as well as our entry into the
Colorado market in October 2012. We are just beginning to harvest the benefits
from our rapid land acquisitions and homebuilding activities.”

Mr. Bauer continued, “Our ability to execute and deliver a broad range of new
home products to a wide array of homebuyers in high growth markets helped us
to realize our most successful year since the inception of the Company. We
remain committed to maintaining a prudent amount of leverage and staying
focused on our bottom line growth. We continue to be disciplined and highly
selective in our approach to building TRI Pointe Homes and to create value for
both our shareholders and customers in the coming years.

As a next generation regional homebuilder, unburdened by underperforming
assets or legacy issues, our team has been able to leverage our strong local
market relationships and established reputations to source acquisitions and
obtain land entitlements to position the Company for continued growth in 2015
and beyond.”

Fourth quarter 2012 operating results

New home orders increased, quarter over quarter, to 75 homes for the 2012
fourth quarter, the highest amount of quarterly orders since the Company began
acquiring land in 2010. The Company’s overall absorption rate for the three
months ended December 31, 2012 per average selling community was 10.7 orders
(3.6 monthly), compared to 3.2 orders (1.1 monthly) during the same period in
2011, and a slight increase from 10.6 orders (3.5 monthly) for the 2012 third
quarter. The improved order trends for both the 2012 fourth quarter and full
year resulted in an increase in the number of homes in backlog to 68,
representing $33.3 million in estimated home sales revenue. Supporting this
increase was a rise in the average sales price of homes in backlog of $69,000,
or 16%, to $490,000 as of December 31, 2012.

For the 2012 fourth quarter, net income was $6.4 million compared to a net
loss of $(1.4) million for the fourth quarter 2011, primarily driven by a
$10.6 million increase in homebuilding gross margin due to higher home sales
revenue and increased homebuilding gross margin percentages. These
improvements were partially offset by an increase in SG&A expense for the 2012
fourth quarter to $4.9 million (8.9% of home sales revenue) compared to $2.0
million (47.1% of home sales revenue) for 2011. The increase was attributable
to a $1.8 million increase in sales and marketing expenses related to the
growth in the number of active selling communities and the number of homes
delivered and a $1.1 million increase in general and administrative expenses
as the Company continues to invest in its infrastructure to support future
growth.

For the 2012 fourth quarter, total revenue was $56.0 million compared to $4.4
million for the same period in 2011. Home sales revenue increased $51.0
million to $55.2 million for the 2012 fourth quarter, as compared to $4.2
million for the same period in 2011, primarily attributable to a significant
increase in new homes delivered to 89 and a growth in the Company's average
sales price of homes delivered to $620,000. The increase in the average sales
price of homes delivered was primarily attributable to a change in product mix
from the deliveries at two new communities in Northern California in the 2012
period. Furthermore, the growth in new home deliveries was due to an increase
in the average number of selling communities to seven for the 2012 fourth
quarter as compared to 2.5 for the same period in 2011.

The Company’s homebuilding gross margin percentage for the 2012 fourth quarter
increased to 20.2% compared to 13.6% for the same period in 2011 and 11.8% in
the 2012 third quarter. This increase was primarily due to the delivery unit
mix from new projects which achieved higher homebuilding gross margins in the
2012 period. Excluding interest in cost of home sales, adjusted homebuilding
gross margin percentage was 21.4%* for the 2012 fourth quarter versus 15.7%*
for the same period in 2011.

For the year ended December 31, 2012, net income was $2.5 million compared to
a net loss of $(4.6) million in 2011, primarily driven by a $12.3 million
increase in homebuilding gross margin due to an increase in home sales revenue
of $77.5 million and a higher homebuilding gross margin percentage of 17.8%.
These improvements were partially offset by an increase in SG&A expense to
$11.4 million (14.7% of home sales revenue).

The Company purchased $68.2 million of land (312 lots) during the 2012 fourth
quarter, of which 196 are located in Southern California, 59 in Northern
California and 57 in Colorado. The Company purchased $103.3 million of land
(511 lots) during the year ended December 31, 2012 of which 332 are located in
Southern California, 122 in Northern California and 57 in Colorado. As of
December 31, 2012, the Company owned or controlled 1,550 lots, of which 775
are owned and actively selling or under development and 775 are controlled
under land option contracts, purchase contracts, or non-binding letters of
intent. Of the 1,550 lots owned and controlled, 777 are in Southern
California, 520 in Northern California and 253 in Colorado.

Subsequent Events

The Company acquired 301 lots valued at $38.4 million so far in the first
quarter, all in Southern California, of which 115 were included in the
Company’s lots owned and controlled as of December 31, 2012 and 186 were
contracted and closed in the first quarter. Furthermore, an additional 410
lots were contracted in Northern California during the first quarter, bringing
the Company’s total lots owned and controlled to over 2,100.

Thomas J. Mitchell, President and Chief Operating Officer of TRI Pointe Homes,
noted, "We continue to build on the positive momentum that emerged during last
year and expect to continue to execute on our growth strategy in 2013. Since
the start of the this year, TRI Pointe Homes has experienced strong demand,
increased pricing and reduced incentives in all of our active selling
communities during the first quarter and as a result, expect to report our
best quarter for new home orders since the inception of the Company. Due to
this strong demand, we wrote our final orders and sold out of three of our
active selling communities during the first quarter.”

* See “Reconciliation of Non-GAAP Financial Measures”

2013 Outlook

In 2013,  the Company expects to open nine new selling communities, six in
Southern California, two in Northern California and one in Colorado. Based on
strong demand to date in 2013, the Company expects to end the first quarter
with six active selling communities, including the opening of one new
community in Southern California and one in Northern California. In the first
quarter, the Company expects to deliver approximately 65% of its 68 units in
backlog as of December 31, 2012. The Company’s backlog at the end of the first
quarter 2013 is expected to be in excess of 130 homes.

Earnings Conference Call

The Company will host a conference call via live webcast for investors and
other interested parties beginning at 5:00 p.m. Eastern Time on Thursday,
March 28, 2013. The call will be hosted by, Doug Bauer, Chief Executive
Officer, Tom Mitchell, Chief Operating Officer and Mike Grubbs, Chief
Financial Officer.

Participants may access the live webcast by visiting the Company’s investor
relations website at www.TRIPointeHomes.com. The call can also be accessed by
dialing (877) 407-3982, or (201) 493-6780 for international participants.

The replay of the call will be available from approximately 8:00 p.m. Eastern
Time on March 28, 2013 through midnight Eastern Time on April 11, 2013. To
access the replay, the domestic dial-in number is (877) 870-5176, the
international dial-in number is (858) 384-5517, and the passcode is 410108.
The archive of the webcast will be available on the Company’s Web site for a
limited time.

About TRI Pointe Homes, Inc.

TRI Pointe Homes, Inc (NYSE: TPH) 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,
more recently, Colorado. The Company is headquartered in Irvine, California.
For more information about the Company and its new home developments please
visit the Company’s website at www.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 projections and estimates concerning
the timing and success of specific projects and our future production,
revenues, income and capital spending. Our forward-looking statements are
generally accompanied by words such as “estimate,” “project,” “predict,”
“believe,” “expect,” “intend,” “anticipate,” “potential,” “plan,” “goal,”
“will,” or other words that convey the uncertainty of future events or
outcomes. The forward-looking statements in this press release speak only as
of the date of this release, and we disclaim any obligation to update these
statements unless required by law, and we caution you not to rely on them
unduly. We have based these forward-looking statements on our current
expectations and assumptions about future events. While our management
considers these expectations and assumptions to be reasonable, they 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: economic changes
either nationally or in the markets in which we operate, including declines in
employment, volatility of mortgage interest rates and inflation; continued or
increased downturn in the homebuilding industry; continued volatility and
uncertainty in the credit markets and broader financial markets; our future
operating results and financial condition; our business operations; changes in
our business and investment strategy; availability of land to acquire and our
ability to acquire such land on favorable terms or at all; availability, terms
and deployment of capital; continued or increased disruption in the
availability of mortgage financing or the number of foreclosures in the
market; shortages of or increased prices for labor, land or raw materials used
in housing construction; delays in land development or home construction
resulting from adverse weather conditions or other events outside our control;
the cost and availability of insurance and surety bonds; changes in, or the
failure or inability to comply with, governmental laws and regulations; the
timing of receipt of regulatory approvals and the opening of projects; the
degree and nature of our competition; our leverage and debt service
obligations; our relationship, and actual and potential conflicts of interest,
with Starwood Capital Group; availability of qualified personnel and our
ability to retain our key personnel; and additional factors discussed under
the sections captioned “Risk Factors” included in our annual and quarterly
reports filed with the Securities and Exchange Commission.

KEY OPERATIONS AND FINANCIAL DATA

(dollars in thousands)

(unaudited)
                                                                                  
                   Three Months Ended                        Year Ended
                   December 31,                              December 31,
                   2012         2011         Change         2012        2011         Change
Operating Data:
Home sales         $ 55,200      $ 4,246      $ 50,954       $ 77,477     $ 13,525     $ 63,952
Homebuilding       $ 11,175      $ 579        $ 10,596       $ 13,789     $ 1,450      $ 12,339
gross margin
Homebuilding         20.2    %     13.6   %     6.6     %      17.8   %     10.7   %     7.1    %
gross margin %
Adjusted
homebuilding         21.4    %     15.7   %     5.8     %      18.9   %     12.7   %     6.2    %
gross margin % *
SG&A expense       $ 4,902       $ 1,999      $ 2,903        $ 11,408     $ 6,173      $ 5,235
SG&A expense as
a % of home          8.9     %     47.1   %     (38.2   )%     14.7   %     45.6   %     (30.9  )%
sales
Net income         $ 6,446       $ (1,447 )   $ 7,893        $ 2,506      $ (4,593 )   $ 7,099
(loss)
EBITDA *           $ 7,463       $ (1,197 )   $ 8,660        $ 4,275      $ (3,100 )   $ 7,375
Interest
incurred and       $ 780         $ 63         $ 717          $ 2,077      $ 171        $ 1,906
capitalized to
inventory
Interest expense   $ -           $ -          $ -            $ -          $ -          $ -
Interest in cost   $ 660         $ 87         $ 573          $ 872        $ 269        $ 603
of home sales
                                                                                       
Other Data:
Net new home         75            8            838     %      204          42           386    %
orders
New homes            89            10           790     %      144          36           300    %
delivered
Average selling
price of homes     $ 620         $ 425          46      %    $ 538        $ 376          43     %
delivered
Average selling      7.0           2.5          4.5            5.4          2.1          3.3
communities
Selling
communities at       7             3            4              7            3            4
end of period
Cancellation         16      %     27     %     (12     )%     16     %     13     %     3      %
rate
Backlog
(estimated         $ 33,287      $ 3,364        890     %
dollar value)
Backlog (homes)      68            8            750     %
Average selling    $ 490         $ 421          16      %
price in backlog
                                                                                       
Balance Sheet
Data:
Cash and cash      $ 19,824      $ 10,164     $ 9,660
equivalents
Real estate        $ 194,083     $ 82,023     $ 112,060
inventories
Lots owned and       1,550         793          95      %
controlled
Homes under          91            30           203     %
construction
Notes payable      $ 57,368      $ 6,873      $ 50,495
Members’ equity    $ 149,153     $ 82,491     $ 66,662
Book               $ 206,521     $ 89,364     $ 117,157
Capitalization
Ratio of             27.8    %     7.7    %     20.1    %
debt-to-capital
Ratio of net         20.1    %     N/A          -
debt-to-capital*
                                                                                       
*See “Reconciliation of Non-GAAP Financial Measures”

UNAUDITED CONSOLIDATED BALANCE SHEETS
                                                        
                                           December 31,
                                           2012            2011
Assets
Cash and cash equivalents                  $ 19,824,000    $ 10,164,000
Real estate inventories                      194,083,000     82,023,000
Contracts and accounts receivable            548,000         71,000
Contracts intangible, net                    -               244,000
Other assets                                3,061,000      1,274,000
                                           $ 217,516,000   $ 93,776,000
                                                           
Liabilities and members’ equity
Accounts payable and accrued liabilities   $ 10,995,000    $ 4,412,000
Notes payable                               57,368,000     6,873,000
                                             68,363,000      11,285,000
                                                           
Commitments and contingencies
                                                           
Members’ equity                             149,153,000    82,491,000
                                           $ 217,516,000   $ 93,776,000

UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
                                                              
                 Three Months Ended              Year Ended
                 December 31,                    December 31,
                 2012          2011             2012             2011
Revenues:
Home sales       $ 55,200,000   $ 4,246,000      $ 77,477,000     $ 13,525,000
Fee building      829,000       169,000        1,073,000      5,804,000  
                  56,029,000    4,415,000      78,550,000     19,329,000 
                                                                  
Expenses:
Cost of home       44,025,000     3,667,000        63,688,000       12,075,000
sales
Fee building       718,000        217,000          924,000          5,654,000
Sales and          2,285,000      491,000          4,636,000        1,553,000
marketing
General and       2,617,000     1,508,000      6,772,000      4,620,000  
administrative
                  49,645,000    5,883,000      76,020,000     23,902,000 
Income (loss)
from               6,384,000      (1,468,000 )     2,530,000        (4,573,000 )
operations
Other income      62,000        21,000         (24,000    )    (20,000    )
(expense), net
Net income       $ 6,446,000    $ (1,447,000 )   $ 2,506,000     $ (4,593,000 )
(loss)

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                  
                Three Months Ended                 Year Ended
                December 31,                       December 31,
                2012             2011             2012               2011
Cash flows
from
operating
activities
Net income      $ 6,446,000       $ (1,447,000 )   $ 2,506,000        $ (4,593,000  )
(loss)
Adjustments
to reconcile
net income
(loss) to net
cash used in
operating
activities:
Amortization
of contracts      146,000           20,000           244,000            686,000
intangible
Depreciation      94,000            26,000           187,000            72,000
Amortization
of equity
based             117,000           117,000          466,000            466,000
incentive
units
Changes in
operating
assets and
liabilities:
Real estate       (45,615,000 )     (6,273,000 )     (112,060,000 )     (67,915,000 )
inventories
Contracts and
accounts          (325,000    )     1,501,000        (477,000     )     2,035,000
receivable
Other assets      (1,534,000  )     112,000          (1,686,000   )     170,000
Accounts
payable and      5,802,000       2,216,000      6,583,000        2,636,000   
accrued
liabilities
Net cash used
in operating     (34,869,000 )    (3,728,000 )    (104,237,000 )    (66,443,000 )
activities
                                                                      
Cash flows
from
investing
activities
Purchases of
furniture and    (186,000    )    (152,000   )    (288,000     )    (308,000    )
equipment
Net cash used
in investing     (186,000    )    (152,000   )    (288,000     )    (308,000    )
activities
                                                                      
Cash flows
from
financing
activities
Cash
contributions     37,000,000        -                66,000,000         64,000,000
from member
Financial
advisory fee
paid on           (1,295,000  )     -                (2,310,000   )     (2,240,000  )
capital
raised
Cash from
common units      (37,000,000 )     -                -                  -
subject to
redemption
Borrowings
from notes        52,635,000        6,546,000        115,888,000        6,981,000
payable
Repayments of    (41,703,000 )    327,000        (65,393,000  )    (3,570,000  )
notes payable
Net cash
provided by      9,637,000       6,873,000      114,185,000      65,171,000  
financing
activities
                                                                      
Net increase
(decrease) in     (25,418,000 )     2,993,000        9,660,000          (1,580,000  )
cash and cash
equivalents
Cash and cash
equivalents –    45,242,000      7,171,000      10,164,000       11,744,000  
beginning of
period
Cash and cash
equivalents –   $ 19,824,000     $ 10,164,000    $ 19,824,000      $ 10,164,000  
end of period
                                                                      
Supplemental
disclosure of
cash flow
information
Interest
paid, net of    $ -              $ -             $ -               $ -           
amounts
capitalized

MARKET DATA

(dollars in thousands)

(unaudited)
                                                                                                       
                 Three Months Ended December 31,                     Year Ended December 31,
                 2012                     2011                      2012                     2011
                 Homes       Avg.          Homes       Avg.          Homes       Avg.          Homes       Avg.
                            Selling                  Selling                  Selling                   Selling
                 Delivered                 Delivered                 Delivered                 Delivered
                             Price                     Price                     Price                     Price
New Homes
Delivered:
Southern         58          $   403           10      $    425      113         $   404           36      $    376
California
Northern         31             1,026        -           -        31             1,026        -           -
California
Total            89          $   620          10      $    425      144         $   538          36      $    376
                                                                                                           
                                                                                                           
                 Three Months Ended December 31,                     Year Ended December 31,
                 2012                      2011                      2012                      2011
                 New         Average       New         Average       New         Average       New         Average

                 Home        Selling       Home        Selling       Home        Selling       Home        Selling

                 Orders      Communities   Orders      Communities   Orders      Communities   Orders      Communities
Net New Home
Orders:
Southern         51              5.0           8            2.5      158             4.3           42           2.1
California
Northern         24             2.0          -           -        46             1.1          -           -
California
Total            75             7.0          8           2.5      204            5.4          42          2.1
                                                                                                           
                                                                                                           
                 December 31, 2012                                   December 31, 2011
                             Backlog       Average                               Backlog       Average
                 Backlog                                             Backlog
                             Dollar        Selling                               Dollar        Selling
                 Units                                               Units
                             Value         Price                                 Value         Price
Backlog:
Southern         53          $   18,723    $   353                   8           $   3,364     $   421
California
Northern         15             14,564       971                   -              -            -
California
Total            68          $   33,287    $   490                   8           $   3,364     $   421
                                                                                                           
                                                                                                           
                 December 31,
                 2012        2011
Lots Owned and
Controlled:
Southern         777             627
California
Northern         520             166
California
Colorado         253            -
Total            1,550          793
                                                                                                           
Lots by
Ownership
Type:
Lots owned       775             408
Lots             775            385
Controlled^(1)
Total            1,550          793

(1) Includes lots that are under land option contracts, purchase contracts or
non-binding letters of intent. With respect to the lots under non-binding
letters of intent, there can be no assurance that we will enter into binding
agreements or as to the terms thereof.

                RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

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

                          Three Months Ended
                           December 31,
                           2012           %        2011            %
                                                                       
Home sales                 $ 55,200,000     100.0 %   $ 4,246,000      100.0 %
Cost of home sales          44,025,000    79.8  %    3,667,000     86.4  %
Homebuilding gross           11,175,000     20.2  %     579,000        13.6  %
margin
Add: interest in cost of    660,000       1.2   %    87,000        2.0   %
home sales
Adjusted homebuilding      $ 11,835,000    21.4  %   $ 666,000       15.7  %
gross margin
Homebuilding gross          20.2       %              13.6       %
margin percentage
Adjusted homebuilding       21.4       %              15.7       %
gross margin percentage
                                                                       
                                                                       
                           Year Ended
                           December 31,
                           2012             %         2011             %
                                                                       
Home sales                 $ 77,477,000     100.0 %   $ 13,525,000     100.0 %
Cost of home sales          63,688,000    82.2  %    12,075,000    89.3  %
Homebuilding gross           13,789,000     17.8  %     1,450,000      10.7  %
margin
Add: interest in cost of    872,000       1.1   %    269,000       2.0   %
home sales
Adjusted homebuilding      $ 14,661,000    18.9  %   $ 1,719,000     12.7  %
gross margin
Homebuilding gross          17.8       %              10.7       %
margin percentage
Adjusted homebuilding       18.9       %              12.7       %
gross margin percentage

          RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)

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

                                  December 31,
                                   2012             2011
Debt                               $ 57,368,000      $ 6,873,000
Members’ equity                     149,153,000     82,491,000  
Total capital                      $ 206,521,000    $ 89,364,000  
Ratio of debt-to-capital^(1)        27.8        %    7.7         %
                                                     
Debt                               $ 57,368,000      $ 6,873,000
Less: cash and cash equivalents     (19,824,000 )    (10,164,000 )
Net debt                             37,544,000        -
Members’ equity                     149,153,000     82,491,000  
Total capital                      $ 186,697,000    $ 82,491,000  
Ratio of net debt-to-capital^(2)    20.1        %    N/A         

(1) The ratio of debt-to-capital is computed as the quotient obtained by
dividing debt by the sum of debt plus members' equity.

(2) The ratio of net debt-to-capital is computed as the quotient obtained by
dividing net debt (which is debt less cash and cash equivalents) by the sum of
net debt plus members' equity. The most directly comparable GAAP financial
measure is the ratio of debt-to-capital.

          RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)

The following table calculates the non-GAAP measures of EBITDA and reconciles
those amounts to net income (loss), as reported and prepared in accordance
with GAAP. EBITDA means net income (loss) before (a) interest expense, (b)
income taxes, (c) depreciation and amortization, (d) expensing of previously
capitalized interest included in costs of home sales and (e) amortization of
equity based incentive units. Other companies may calculate EBITDA (or
similarly titled measures) differently. We believe EBITDA information is
useful as one measure of the Company’s ability to service debt and obtain
financing.

              Three Months Ended              Year Ended
               December 31,                     December 31,
               2012           2011             2012           2011
Net income     $ 6,446,000     $ (1,447,000 )   $ 2,506,000     $ (4,593,000 )
(loss)
Interest
expense:
Interest         780             63               2,077           171
Incurred
Interest         (780      )     (63        )     (2,077    )     (171       )
Capitalized
Amortization
of interest      660,000         87,000           872,000         269,000
in cost of
home sales
Depreciation
and              240,000         46,000           431,000         758,000
amortization
Amortization
of equity
based           117,000       117,000        466,000       466,000    
incentive
units
EBITDA         $ 7,463,000    $ (1,197,000 )   $ 4,275,000    $ (3,100,000 )

The following table reconciles net cash used in operating activities, as
reported and prepared in accordance with GAAP, to EBITDA:

             Three Months Ended                Year Ended
             December 31,                       December 31,
             2012             2011             2012              2011
Net cash
used in      $ (34,869,000 )   $ (3,728,000 )   $ (104,237,000 )   $ (66,443,000 )
operating
activities
Amortization
of interest    660,000           87,000           872,000            269,000
in cost of
home sales
Changes in
operating
assets and
liabilities:
Real estate    45,615,000        6,273,000        112,060,000        67,915,000
inventories
Contracts
and accounts   325,000           (1,501,000 )     477,000            (2,035,000  )
receivable
Other assets   1,534,000         (112,000   )     1,686,000          (170,000    )
Accounts
payable and   (5,802,000  )    (2,216,000 )    (6,583,000   )    (2,636,000  )
accrued
liabilities
EBITDA       $ 7,463,000      $ (1,197,000 )   $ 4,275,000       $ (3,100,000  )

Contact:

TRI Pointe Homes, Inc.
Investor Relations:
Brad Cohen, 949-478-8696
InvestorRelations@TRIPointeHomes.com
Media:
Carol Ruiz, 310-437-0045
cruiz@newgroundco.com
 
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