Taylor Morrison Home Corporation · NYSE:TMHC
Taylor Morrison Home — Q3 2023 Earnings Presentation
22 slides from Taylor Morrison Home's earnings presentation, Oct 25, 2023
Slide 1: Investor Presentation Third Quarter 2023
Investor Presentation Third Quarter 2023
Slide 2: At a Glance
At a Glance as of the third quarter 2023 year to date 2023 74,000 $611,000 $5.2 billion homebuilding lots owned & controlled average home closing price total revenue 6.1 years 18.2% 8,305 total homebuilding lot supply (3.5 years owned) return on equity home closings 325 $1.6 billion 2.9 active selli
Slide 3: Third Quarter Key Metric Comparison
Third Quarter Key Metric Comparison Operating Statistics Q3 2023 Q3 2022 Year-Over-Year Change Net Sales Orders 2,592 2,069 25% Net Sales Orders Average Sales Price (in Thousands) $623 $619 1% Cancellation Rate 11.4% 15.6% (420) bps Home Closings 2,639 3,050 (14%) Backlog Units 6,118 7,941 (23%) Bac
Slide 4: Fourth Quarter and Full Year 2023 Guidance Metrics
Fourth Quarter and Full Year 2023 Guidance Metrics Fourth Quarter 2023 Full Year 2023 Ending Active Community Count 320 to 325 320 to 325 Home Closings Approximately 2,950 Approximately 11,250 Average Sales Price Approximately $615,000 Approximately $625,000 Adjusted Home Closings Gross Margin(1) Ar
Slide 5: Diverse Portfolio Serves All Major Buyer Groups, with a Focus on Core Locations
Diverse Portfolio Serves All Major Buyer Groups, with a Focus on Core Locations Resort Lifestyle 22% Entry Level 35% 3Q23 Net Sales Orders by Consumer Group Move-Up 43% With different needs and preferences among consumer groups, our diversified strategy allows us to operate both a spec and to-be-bui
Slide 6: Our Buyers Tend to be Well-Qualified with Financial Flexibility
Our Buyers Tend to be Well-Qualified with Financial Flexibility Taylor Morrison Home Funding Borrower Snapshot Mortgage Unit Product Mix as of 3Q23 VA Jumbo 6% 2% 753 Average FICO Score FHA 14% 24% Average Downpayment Conventional 78% $467,000 Average Loan Amount Mortgage Capture Rate 88% 39% Averag
Slide 7: The Power of Finance as a Sales Tool
The Power of Finance as a Sales Tool Virtually all Taylor Morrison homebuyers are pre-qualified with TMHF to manage qualification risk and customer We customize finance incentives to meet each borrowers’ expectations. needs: ▪ Temporary rate buy-downs ease the transition into homeownership with lowe
Slide 8: Focused on Driving Enhanced Profitability and Returns
Home Closings Gross Margin Focused on Driving Enhanced Profitability and Returns 23.9% Adjusted 27.5% Operational Initiatives 23.1% 21.2% GAAP • Balanced To-be-Built and Spec Home Strategy • Pace and Price Management to Optimize Community Performance • Floorplan and Option Rationalization 3Q21 3Q22
Slide 9: Capital Allocation Balances Liquidity, Growth and Returns
Capital Allocation Balances Liquidity, Growth and Returns Reinvest in Our In 2022, ▪ Balanced capital Business allocation strategy aims to deliver shareholder $1.1B returns over the course Operating Cash Flow of a housing cycle Generated ▪ Significant investment Return Cash to Shareholders Balance S
Slide 10: Disciplined Land Investment Supported by Strong Lot Portfolio
Homebuilding Lot Supply Disciplined Land Investment 80,000 Supported by Strong Lot 78,000 74,000 Portfolio Owned 64% 58% 58% Q3 2023 Highlights 36% Controlled 42% 42% • Disciplined land investment strategy focuses on prime land locations in core submarkets 3Q21 3Q22 3Q23 • 74,000 owned and controlle
Slide 11: Well-Capitalized Balance Sheet Provides Financial Flexibility
Debt Maturity Summary as of Q3 2023 (in Millions) Well-Capitalized Balance Sheet Revolving Credit Facilities Loans Payable Senior Notes Provides Financial Flexibility $1,600 $1,000 Q3 2023 Highlights $16 $100 • $1.6 billion total liquidity $54 $76 $45 $527 $450 $500 $142 • $614 million unrestricted
Slide 12: Innovative Digital Sales Capabilities Driving Efficiencies
Innovative Digital Sales Capabilities Driving Efficiencies Oct. 2020 Quick Move-In Reservation System 45% Launch Shoppers can reserve spec homes with an online shopping cart March 2021 To-Be-Built 1.0 3Q23 online reservation-to-sales conversion Reservation System Launch Shoppers can choose their lot
Slide 13: Appendix
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Slide 14: About Taylor Morrison
West Bay Area Portland Sacramento Seattle About Taylor Morrison Southern California Central Austin Dallas-Fort Worth Denver Las Vegas Phoenix Headquartered in Scottsdale, Arizona, Taylor Morrison Houston (NYSE:TMHC) is a leading land developer and East Atlanta homebuilder with operations in 19 housi
Slide 15: Taylor Morrison's Competitive Advantages
Taylor Morrison’s Competitive Advantages Diversified consumer groups and price points Community-focused land developer 1 Exposure to key demographic groups mitigates risk and 5 Development expertise adds value to homebuilding enables a balanced spec and to-be-built business operations and expands in
Slide 16: Milestones
Transformational Journey Delivered Scale and Diversification Regional M&A and Strategic Refinement Enhanced Public Market Liquidity Large Scale M&A Operational Effectiveness 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 $722M IPO Sold Canadian Acquired JEH Acquired Increased Became a fully- Ente
Slide 17: 2022 ESG Highlights
2022 ESG Highlights BUILDING FOR THE FUTURE PEOPLE FIRST TRANSPARENCY & ACCOUNTABILITY Appointed our first Corporate Director Only homebuilder recognized on Launched a Board Fellowship of Sustainability to execute our Bloomberg’s Gender-Equality Index Program to provide talented business sustainabil
Slide 18: Historical Operating Data by Region
Historical Operating Data by Region Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2023 vs Q3 2022 Net Sales Orders East 1,777 1,302 1,279 1,037 5,395 1,027 1,121 1,041 939 4,128 1,079 1,047 940 (10%) Central 1,072 850 921 957 3,800 887 642 450 3
Slide 19: Disclosures
Disclosures
Slide 20: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures In addition to the results reported in accordance with accounting principles generally accepted in the United States (“GAAP”), we have provided information in this presentation relating to net homebuilding debt to capitalization ratio. Net homebuilding debt to cap
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Three Months Ended September 30, (Dollars in thousands) 2023 2022 2021 Home closings revenue $ 1,611,883 $ 1,983,775 $ 1,772,495 Cost of home closings $ 1,238,999 $ 1,438,164 $ 1,397,319 Home closings gross margin $ 372,884 $ 545,611 $ 375,176 Inventory impairment
Slide 22: Forward-Looking Statements
Forward-Looking Statements This earnings summary includes “forward-looking statements.” These statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend