Taylor Morrison Home Corporation · NYSE:TMHC
Taylor Morrison Home — Q4 2024 Earnings Presentation
24 slides from Taylor Morrison Home's earnings presentation, Feb 12, 2025
Slide 1: Investor Presentation Fourth Quarter 2024
Investor Presentation Fourth Quarter 2024
Slide 2: Strategic priorities grounded in sustaining attractive full-cycle returns
Strategic priorities grounded in sustaining attractive full-cycle returns Operational Efficiency Returns-Focused Land Investment Balanced Capital Allocation • Diversified Consumer Base • Focused on Investing in Prime Core Locations • Invest for Smart Growth to Drive Returns • Balanced To-be-Built an
Slide 3: Value creation journey provided critical depth and breadth for long-term performance
Value creation journey provided critical depth and breadth for long-term performance 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 $722M IPO Sold Acquired Acquired Increased Became a Entered the Acquired Debuted on Launched Celebrated Entered marked Canadian JEH Homes Acadia public flo
Slide 4: Long-term targets reflect structural improvements to our expected earnings potential
Long-term targets reflect structural improvements to our expected earnings potential Annualized Monthly Sales Pace Home Closings Gross Margin Return on Equity1 Low-Three Mid-to-High Range 24.4% Low-to-Mid Teen Range 3.0 20% Range 15.8% 18.8% 2.3 10.3% 2013-19 2024 Target 2013-19 2024 Target 2013-19
Slide 5: At a glance
At a glance fourth quarter 2024 full year 2024 86,153 $608,000 12,896 total homebuilding lots (57% controlled) average home closing price home closings 6.6 24.9% $7.8 billion years of total lot supply (2.8 years owned) adjusted home closings gross margin total revenue 339 15.8% 3.0 active selling co
Slide 6: Diverse portfolio serves consumers across the homebuyer spectrum
Diverse portfolio serves consumers across the homebuyer spectrum Product portfolio serves a broad range of consumers Resort Lifestyle 20% Entry Level 32% Sales by Consumer Group1 Move Up 48% Attractive coast-to-coast footprint in top markets 6 Note: (1) Data as of Q4 2024.
Slide 7: 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 Q4 2024 VA Jumbo 7% 1% 752 Average FICO Score FHA 19% 23% Average Downpayment Conventional 73% $471,000 Average Loan Amount Mortgage Capture Rate 86% 88% 89%
Slide 8: Disciplined land investment supported by strong lot portfolio
Homebuilding Lot Supply Disciplined land investment 86,153 supported by strong lot portfolio 74,787 72,362 Owned 43% 49% 47% • Disciplined land investment strategy focuses on prime land locations in core submarkets Controlled 57% 51% 53% • Utilizing land-lighter investment tools to balance cost of c
Slide 9: Capital allocation balances liquidity, growth and returns
Capital allocation balances liquidity, growth and returns Reinvest in Our Business ▪ Balanced capital allocation strategy aims to deliver shareholder returns over the course of a housing cycle ▪ Significant investment to achieve and Return Cash to Balance Sheet maintain critical scale and Shareholde
Slide 10: Well-capitalized balance sheet provides financial flexibility
Senior Note Maturity Schedule (in Millions) Well-capitalized balance sheet $527 $500 provides financial flexibility $450 • $1.4 billion total liquidity • $487 million unrestricted cash • $947 billion total revolving credit facility capacity, which was undrawn outside of normal course letters of cred
Slide 11: Our digital sales tools have modernized the homebuying experience
Our digital sales tools have modernized the homebuying experience Online reservations that convert to sales 58% 53% 53% 47% 47% 45% Online reservations as a percentage of gross sales 16% 16% 16% 17% 15% 15% Q3 2023 Q4 2023 1Q 2024 2Q 2024 3Q 2024 Q4 2024 11
Slide 12: Our growing Build-to-Rent business
Our growing Build-to-Rent business develops single-family rental communities designed to cater to consumers seeking an alternative to traditional multi-family rentals. ~40 build-to-rent owned & controlled communities 9 markets with Yardly operations 5 to 7 asset dispositions expected in 2025 12
Slide 13: Key metrics
Key metrics Operating statistics 4Q 2024 4Q 2023 Change 2024 2023 Change Ending active selling communities 339 327 4% 339 327 4% Net sales orders 2,621 2,361 11% 12,248 10,830 13% Net sales orders per community per month 2.6 2.4 8% 3.0 2.8 7% Cancellation rate 13.1% 11.6% 150 bps 9.5% 12.1% (260) bp
Slide 14: First quarter and full year 2025 guidance metrics
First quarter and full year 2025 guidance metrics First Quarter 2025 Full Year 2025 Ending active community count 340 to 345 At least 355 Home closings Approximately 2,900 13,500 to 14,000 Average closing price $590,000 to $600,000 $590,000 to $600,000 GAAP home closings gross margin High-23% Range
Slide 15: Appendix
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Slide 16: About Taylor Morrison
About Taylor Morrison Headquartered in Scottsdale, Arizona, Taylor Morrison (NYSE:TMHC) is a leading land developer and homebuilder with operations in 20 housing markets across 12 states. We serve a wide array of homebuyers with our diverse product portfolio, including entry level, move up and resor
Slide 17: What sets Taylor Morrison apart
What sets Taylor Morrison apart 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 investment
Slide 18: Historical operating data by region
Historical operating data by region 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Net Sales Orders East 4,128 1,079 1,047 940 902 3,968 1,295 1,160 1,140 993 4,588 Central 2,289 674 808 641 602 2,725 904 815 747 784 3,250 West 3,070 1,101 1,168 1,011 857 4,137 1,487
Slide 19: Disclosures
Disclosures
Slide 20: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures Adjusted Net Income and Adjusted Earnings Per Common Share Three Months Ended Twelve Months Ended December 31, December 31, (Dollars in thousands, except per share data) 2024 2023 2024 2023 Net income $ 242,453 $ 172,585 $ 883,309 $ 768,929 Legal reserves or settl
Slide 21: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures Adjusted Home Closings Gross Margin Three Months Ended Twelve Months Ended December 31, December 31, (Dollars in thousands) 2024 2023 2024 2023 Home closings revenue $2,169,703 $1,937,632 $7,755,219 $7,158,857 Cost of home closings 1,632,003 1,470,652 5,863,743 5,
Slide 22: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures Debt to Capitalization Ratios Reconciliation As of December 31, As of September 30, As of December 31, (Dollars in thousands) 2024 2024 2023 Total debt $ 2,120,483 $ 2,143,223 $ 2,017,102 Plus: unamortized debt issuance cost, net 6,616 7,056 8,375 Less: mortgage w
Slide 23: 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 provide our investors with supplemental information relating to: (i) adjusted net income and adjusted earnings per common share, (ii)
Slide 24: Forward-looking statements
Forward-looking statements This presentation 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 to s