Taylor Morrison Home Corporation · NYSE:TMHC
Taylor Morrison Home — Q2 2023 Earnings Presentation
19 slides from Taylor Morrison Home's earnings presentation, Jul 26, 2023
Slide 1: Investor Presentation Second Quarter 2023
Investor Presentation Second Quarter 2023
Slide 2: At a Glance
At a Glance as of 2022 as of the second quarter 2023 $8.2 billion 72,000 $639,000 total revenue homebuilding lots owned & controlled average home closing price 12,647 5.8 years 21.8% home closings total homebuilding lot supply (3.3 years owned) return on equity 19 327 $2.3 billion operating markets
Slide 3: Key Metric Comparison
Key Metric Comparison Operating Statistics Q2 2023 Q2 2022 Year-Over-Year Change Net Sales Orders 3,023 2,554 18% Net Sales Orders Average Sales Price (in Thousands) $613 $699 (12%) Cancellation Rate (% of Gross Sales Orders) 11.2% 10.8% 40 bps Home Closings 3,125 3,032 3% Home Closings Average Sale
Slide 4: Third Quarter and Full Year 2023 Guidance Metrics
Third Quarter and Full Year 2023 Guidance Metrics Third Quarter 2023 Full Year 2023 Ending Active Community Count 320 to 325 320 to 325 Home Closings Approximately 2,600 Approximately 11,000 Average Sales Price Approximately $615,000 Approximately $625,000 GAAP Home Closings Gross Margin Approximate
Slide 5: Home Closings Gross Margin and Return on Equity
Home Closings Gross Margin Strong Performance Reflective of Operational Enhancements Impacted by WLH Acquisition in February 2020 27.5% 26.6% 24.2% 23.9% 23.5% 23.1% 21.6% 21.2% 19.1% 18.6% 18.3% 17.2% Operational Initiatives 15.4% 15.4% • Strategic Selling and Balanced To-be-Built and Spec Home Mix
Slide 6: Opportunistic Land Investment Enabled by Strong Lot Portfolio
Homebuilding Lot Supply Opportunistic Land 82,000 Investment Enabled by 76,000 72,000 Strong Lot Portfolio Owned 65% 59% 57% Q2 2023 Highlights Controlled 35% 41% • Disciplined land investment strategy focuses on prime land locations in 43% core submarkets • 72,000 owned and controlled homebuilding
Slide 7: Well-Capitalized Balance Sheet Provides Financial Flexibility
Debt Maturity Summary as of Q2 2023 (in Millions) Well-Capitalized Balance Sheet $2,300 Revolving Credit Facilities Loans Payable Senior Notes Provides Financial Flexibility $1,000 Q2 2023 Highlights $100 $13 $8 • $2.3 billion total available liquidity—an all-time high $129 $71 $35 $527 $450 $500 $6
Slide 8: 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 9: Diverse Product Portfolio Serves All Major Buyer Groups
Diverse Product Portfolio Serves All Major Buyer Groups Net Sales Orders by Consumer Type 24% 28% Resort Lifestyle 47% 39% Move Up 29% 33% Entry Level 2Q22 2Q23 Monthly Net Sales Orders per Community 3.1 3.1 2.9 2.6 2.1 1.9 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 9
Slide 10: Financial Services
Financial Services Q2 2023 Highlights Borrower Snapshot Unit Product Mix Suite of Services Benefits • 753 Average FICO Score • 77% Conventional • Mortgage Lending • Pre-Qualification of Nearly All Buyers • 76% Average LTV Ratio • 20% Government • Title Insurance • Valuable Backlog Management • $480,
Slide 11: Innovative Digital Sales Capabilities Driving Efficiencies
Innovative Digital Sales Capabilities Driving Efficiencies Oct. 2020 Quick Move-In Reservation System Launch Shoppers can reserve spec homes with an online shopping cart For online reservations made in 2Q23: March 2021 To-Be-Built 1.0 Reservation System Launch Shoppers can choose their lot, 47% Sale
Slide 12: 2022 ESG Highlights
2022 ESG Highlights BUILDING FOR THE FUTURE PEOPLE FIRST TRANSPARENCY & ACCOUNTABILITY Appointed our first Corporate Director Awarded a spot on Bloomberg’s Launched a Board Fellowship of Sustainability to execute our Gender-Equality Index for the fourth Program to provide talented business sustainab
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: 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 $722M IPO Sold Canadian Acquired JEH Acquired Increased Became a fully- Ente
Slide 16: Historical Operating Data by Region
Historical Operating Data by Region Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Q1 2023 Q2 2023 Q2 2023 vs Q2 2022 Net Sales Orders East 1,777 1,302 1,279 1,037 5,395 1,027 1,121 1,041 939 4,128 1,079 1,047 (7%) Central 1,072 850 921 957 3,800 887 642 450 310 2,289 674
Slide 17: Disclosures
Disclosures
Slide 18: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Debt to Capitalization Ratios Reconciliation As of As of March 31, As of ($ in thousands) June 30, 2023 2023 June 30, 2022 Total debt $ 2,393,571 $ 2,301,878 $ 2,950,744 Plus: unamortized debt issuance cost, net 9,613 10,193 11,891 Less: mortgage warehouse borrowi
Slide 19: 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