Greetings and welcome to the TRI Pointe Homes First Quarter 2014 Earnings Call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions). As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Mr. Glen Keeler, Vice President and Corporate Controller of TRI Pointe Homes. Thank you, you may begin.

Good morning. Welcome to TRI Pointe Homes first quarter 2014 earnings conference call. Earlier today, the company released its financial results for the quarter. Documents detailing these results are available on the Company's Investor Relations website at www.tripointehomes.com. Before the call begin, I would like to remind everyone that certain statements made in the course of this call are not based on historical information and constitute forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described or implied in these forward-looking statements. I refer you to the company's filings made with SEC for a more detailed discussion of the risks and factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. The company undertakes no duty to update these forward-looking statements that are made during the course of this call. Additionally, non-GAAP financial measures will be discussed on this conference call. The company's presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most comparable measures prepared in accordance with GAAP can be accessed through the filings with the SEC at www.sec.gov. Hosting the call today is Doug Bauer, TRI Pointe Homes’ Chief Executive Officer; Mike Grubbs, the company's Chief Financial Officer; and Tom Mitchell, the company’s Chief Operating Officer and President. With that, I will now turn the call over to Doug.

Thank you, Glen, and welcome to our first quarter 2014 earnings conference call. Today I will provide a brief summary of our recent results, as well as share some additional insight into the housing market. And bringing up to-date on our progress related to the transaction with Weyerhaeuser Real Estate Company for WRECO. Mike Grubbs will follow up with some additional detail on the first quarter and provide some perspective on the remainder of 2014. We will then be joined by Tom Mitchell to take some questions. We are pleased to start 2014 with a strong quarter on all financial metrics, increases in orders, deliveries, backlogs and average selling price. All of which drove higher revenues and resulting in increasing earnings per share when compared to the same period in 2013. We were able to achieve these results while working to complete the integration and transition of the WRECO operation. As part of our $2.7 billion merger we announced in November 2013. This wouldn’t have been possible without the hard work and dedication of our deep and talented TRI Pointe team. The housing market continues to act very normal some markets are choppy, some markets are good other markets are great with the choppiness and demand we experienced at the end of 2013 that means from the mortgage rate volatility political uncertainty and the rapid price appreciation largely abated our traffic and sales pace improved in the first quarter on a sequential basis from the fourth quarter of 2013. We remain confident that the housing market has strong life to stand on due to the continued disparity between supply and demand. although this recovery has been inconsistent at times the fundamentals of job growth household formations and a low housing supply should continue to lead to healthy demand. For the…

Thanks, Doug. Good morning. I would also like to welcome everyone to today’s call. I will be highlighting some of our results and key financial metrics from the first quarter and provide our expectations and outlook for the second quarter and full year 2014 and we will open it up for some questions. As Doug previously mentioned, overall it was another solid quarter for TRI Pointe. Our home sales revenue was $72.8 million on 92 home deliveries with an average selling price of $791,000. Our homebuilding gross margin remains strong at 22.5%, while our SG&A expense as a percentage of home sales revenue improved to 11.5% for the quarter resulting in net income of $4.3 million or $0.14 per diluted share. During the first quarter, the company incurred $548,000 in transaction-related expenses which included legal and accounting due diligence, integration and other transition costs related to the WRECO transaction. Excluding these expenses, earnings per diluted share was $0.15. The company also expects to continue to incur additional transition expenses related to the WRECO integration during the next two quarters. As far as selling communities that we previously guided, we opened two new communities during the first quarter; one in Southern California and one in Northern California. We also closed two communities one each in Southern California and Northern California. So, we ended the quarter with how we started with 10 active selling locations. For the first quarter, we averaged 10 selling communities versus 7.3 selling communities during the same period last year and 8.3 selling communities in the fourth quarter of 2013. We continue to see strong absorption rates with 4.6 orders per month per average selling community during the first quarter, which was an increase sequentially from an absorption rate of 3.5 orders per month from the previous quarter.…

Thank you. Ladies and gentlemen, at this time we will be conducting a question-and-answer session. (Operator Instructions). Our first question comes from Nishu Sood with Deutsche Bank. Please proceed with your question. Your line is live.

Thanks. This is Rob Hansen on for Nishu. So in the past you mentioned restricting sales updated there of higher gross margins. And so I just wanted to see if you continue to do this and what is your outlook on pace versus prices, especially in California and in Colorado?

Hey, Rob this is Tom. Thanks for been on this morning. We still continue to try to price our projects to the appropriate targets absorptions for our business plans and are very cognizant of that, and the California projects really in our excellent well located core communities are performing very well. So we tend to have phase releases that have very high demand and we have had good price increases on our new projects.

Yes. Rob this is Doug. What I would add that it’s really a granular exercise on a project by projects approach that’s done every week as our sales team meet. As Tom mentioned here in California we are a phase builder we do split some of our phase sizes to maximize revenue at the same time, we are always balancing pace. So there is a constant recipe of success that we are looking at every week and it’s very project specific.

In general your absorptions are running at a pretty high level, would you say that they are, this is kind of what you have targeted then or this is just way above plan in terms of what you originally expected?

We generally plan anywhere from our planning process anywhere from three to five sales per month per project from a planning tool, obviously 4.6% is the higher end, but I think it's also reflective of the locations, when you look at the projects that we've opened and the markets that we're in, I would grade those markets as A and they have opened up with a lot of strength. So, it's a little bit of a reflection from the beginning the land acquisition strategy to developing product and executing on that product and delivering it to the consumer. And right now the TRI Pointe team is hitting it on all cylinders and especially in the Coastal part of California, Southern and Northern California and Denver is doing very well too.

Rob, I would add to that, just again we do try to target specifically to our underwriting relative to absorption. So we are certainly able certainly able to do that. And again right now, most of our projects as Doug said in the well located assets, demand has been great.

All right. Thank you very much guys.

Our next question comes from Ivy Zelman with Zelman & Associates. Please proceed. Ivy Zelman - Zelman & Associates: Hey, guys. Good morning. Great results. Just a few things, your SG&A as a percent of sales has been very strong and surprising to the upside and recognizing the success you've had in the ramp-up with maintaining a low cost. Can you just elaborate on if we should assume that's sustainable in the face of the acquisition and obviously integration costs, do you think you can kind of stay in that low end of the range?

Ivy, this is Mike. Yes, we're really not guiding to the combined company right now, but as TRI Pointe standalone obviously we're comfortable working within the lower end of that range. We are going to incur some additional transition costs that's going to bump that number probably up and when you look at the combined companies, they're running a little bit higher SG&A. So that's one of our targeted goals over the next two to three years drive that numbers down.

The part of the issue; Ivy, this is Doug. You're dealing within higher ASP in our mix of homes right now so that obviously drive the percentage down and when you combine the company’s ASP it will come down quite a bit. So there will definitely be some changes in that SG&A, but we look at that as something we continue to prove on over the next one to three years. Ivy Zelman - Zelman & Associates: It's been very strong, good job. I think when you talk about with your now TRI Pointe relatively small scale and maybe you can dig in a little bit and help us appreciate, you've had very strong performance and absorption and assumingly that pricing power maybe talking a little bit more about the actual consumer, who are they, are they first time buyers buying a move up home, we’ve heard some 38% is there buyers were actually renters, previous renters have been for the first time and I was intrigued by that. So I was just wondering if you can maybe tell us is there so much negative sentiment in the market towards having today and (inaudible) are going to leave it home forever and there is speed in loan debt. You obviously had success with strong demand so maybe help group some of the more settlement point out there and talk a little bit more about who the customer is and what you're seeing in the REITs?

Ivy, this is Tom, that's a great question. Absolutely without a doubt it varies on a project-by-project basis and it's very specific to the market. But you can see with our higher average sales price that strong majority of our buyers are move up oriented buyers and second and third time buyers. So that certainly is a factor there. We do have some products come to the marketplace that are geared more towards the entry level buyer and we are seeing a lot of activity and excitement about those coming. But right now I would say our mix is very typical for what you would expect to see in a move up oriented buyer type of product market that we are operating again. Ivy Zelman - Zelman & Associates: And Tom just to elaborate though, if you get to the -- go granular on that customer, they are moving because they have new job, they are moving because their house is too small, they are moving because they just want a bigger home. Can you have any granularity on what is driving them to come in and obviously selling their home assuming they are moving locally and so the resale market is pretty tight? So it's really a lot of disconnects, I think people would be interested in that perspective.

Yes, I don’t think there is too much surprise to the answer there. Most of the movement in the move up market tends to happen because of some form of life change either a growing family, additions to the family or as their family matures that the buyer to get into different schools. There has been some job relo, but most of it is people just having their life change and wanting a different home to accommodate that.

I would also add, Ivy, this is Doug. If you look at the Core Bay area and along even the coastal part of Southern California the job growth is very strong, a lot of those jobs are very high paying jobs, the median income and [Sam Mikhail] for example is I think close to $92,000, $94,000. We are selling town homes in the $800,000 to $900,000 price range and that becomes the first time homebuyer. And that’s obviously a little bit of a different definition of a first time homebuyer than across the country. But we are in a very unique marketplace when you look at the Core Bay area and the coastal part; very limited supply, very strong job growth, nice demographics, strong median income levels and these people are coming out of ramping for example I met a customer in Sam Mikhail, a young couple. This is $800,000 town home. This is their first home. They’ve been a renter for a number of years across the street in Bay Meadows. They looked at me and said Mr. Bauer our payment here even for this $800,000 town home will be less than my rent payment. So there is still there rent to own equation for some of these people. The fact that they’ve got very good jobs too obviously helps the housing equation. Ivy Zelman - Zelman & Associates: That’s great color guys. And obviously the Californian markets are really good; but this is making some more commentary on Colorado or any comments there that would be showing the same trend?

Yes, I mean we’ve had very good success in Colorado. I know some of our peers have spoken otherwise which is surprising. We’ve had excellent pace, some mild pricing elasticity. The traffic is very interested in making a purchase decision as we’ve gone through the first four months of this year in Castle Rock all the way up to Denver. We’ve recently opened a new community in the core part of Denver. And more urban product 20 foot like product and then we opened a lot of interest and success. So we’re looking at further new communities up in the Northwest in Northern Colorado. And frankly we’re seeing a lot of success from our competition up there too. So I am very excited about Colorado. Ivy Zelman - Zelman & Associates: Okay. Congratulations guys, great job.

Thanks.

Thank you. (Operator Instructions). Our next question comes from Steve Stelmach of FBR Company. Please proceed with your questions.

Hey, guys. It’s actually Pat Kealey on for Steve. Would you guys be able to comment on just what you are seeing in the California land market, what does competition and pricing look like, have you seen any indication of normalization there?

Yes. Pat, this is Tom. We certainly have felt that land market stabilized over the last four or five months. That being said, we continue to see excellent opportunities in the marketplace. We really have had a good time sourcing that the deals that we want and overall, we see it stable but still highly competitive; most of all our competitors are still aggressively pursuing land deals.

Great, thanks again.

And our next question comes from Brendan Lynch with Sidoti. Please proceed with your questions.

Good morning guys, thanks for taking my question.

Hey, Brendan.

Could you give us a little color on the product mix of the 22 communities that are set to open on the ASP trend that we could expect given that the backlog ASP is north of 8,000?

Yes Brendan, this is Mike. As I mentioned, we are going to see our probably average sales price start to trend up towards the latter part of the year as open our new communities. Most of our new communities are coming out of more [east] and with the lower price point as Tom mentioned will be providing some house into the first time buyer in some of those markets. If you look at our guidance, our guidance is around an average sales price of 720,000 for the full year. We should see that reduce also moving out into 2015. So it’s trend down over the next couple of years, our ASP.

Okay, very good. Thank you. And then, another question, I see that you're acquiring some land in California in the first quarter. Is this something that you will continue to do even after the WRECO acquisition, or is this just a land deal that was coming to fruition in the first quarter that you had been working on for the past several months?

Yes, this is Doug, Brendan. We will continue to look at land opportunities, we've got a 100% coverage for 2015 and through 2016, I think we're, if I recall Mike about 75%, 80%. So, we're looking for opportunities that will fill that pipeline for the second half of 2016. So, we'll continue to be in the market here at TRI Pointe and frankly after we close the WRECO transaction as well.

Okay, great. Thank you.

Our next question comes from Mark Weintraub with Buckingham Research. Please proceed.

Thank you. Actually, one quick clarification. When you say 75% to 80%, was that in 2016 or through 2016?

Through 2016, coverage on the closings, Mark.

Okay. So, basically, that’s closer to 50% in 2016?

No, roughly 80% of the closings that we have projected for 2016, we own our control.

Perfect, okay. Thank you.

Sorry about that.

And can you just remind us how many communities you are at this point anticipating to be closing out in the second half of this year?

In the second half of the year, we'll be closing out roughly four communities -- on the second half, two communities, we’re going to close two in the second quarter and then two more in the second half of the year.

Okay, great. And lastly, as you look at your strong absorption rate, were there a few real stand out communities or was it fairly strong across the Board, and if there were some stand out, just a little bit of color perhaps?

Yes. Mark, this is Tom. We certainly have had some standouts and some strong absorptions. Doug mentioned the one new product we opened in Northern California up in the Bay area that performed very well right out of the gate. And then also the other strong performer came from the new project in Southern California, which was Woodson at Playa Vista. And those two really had a lot of pent-up demand and open to some great results.

Great. Thanks very much.

Okay. We have time one more question. Our final question will be from Alex Barron of Housing Research Center. Please proceed with your question.

Hey guys. Good morning, great job. I wanted to see if you could talk a little bit on Northern California. So, it seems to me like the closing were a little lower in terms of backlog conversion than previous quarters. I was wondering if that was just a question of timing. And then as far as the ASP, I'm getting something for orders well north of $1 million. Is that correct?

Yes. Alex, this is Mike. And to answer your first question, yes, it is related to timing. We closed a lot of our product out in the fourth quarter of last quarter. Northern California is just bringing on some new communities, which is still kind of new communities in Bay Meadows, we have pretty much been sold out of our other Bay Meadows project in the first quarter. And then we're just recently opening a couple of new communities in Redwood. And so our ASP is going to start driving down fairly significantly in Northern California as we close out the higher end products in the Bay area.

And I guess as far as margins, is Northern California still very different than Southern?

No those are performing about equally now when you look at the margins, they are both performing very well.

From our two existing projects in Northern California, we do have some really strong performers there but we as we blend in the new projects opening out in [Redwood], you’ll see it combined and be very comparable to what’s happening in Southern California.

Got it, okay thanks a lot.

Thank you. At this time, I’d like to turn the floor back over to management for closing comments.

Thank you everyone and we appreciate you joining us for our first quarter call. And we look forward to talking with all of you coming in the second quarter. Thank you and have a great day.

Thank you. Ladies and gentlemen, this concludes today’s conference. You may disconnect your lines at this time. Thank you all for your participation.