Taylor Morrison Home Corporation · NYSE:TMHC
Taylor Morrison Home — Q4 2023 Earnings Presentation
22 slides from Taylor Morrison Home's earnings presentation, Feb 14, 2024
Slide 1: Investor Presentation: Fourth Quarter and Full Year 2023
Investor Presentation Fourth Quarter and Full Year 2023
Slide 2: At a Glance
At a Glance as of the fourth quarter 2023 in 2023 72,362 $607,000 $7.4 billion homebuilding lots owned & controlled average home closing price total revenue 6.3 years 24.1% 11,495 total homebuilding lot supply (3.0 years owned) home closings gross margin home closings 327 $1.8 billion 2.8 active sel
Slide 3: Key Metrics Summary
Key Metrics Summary Operating Statistics Q4 2023 Q4 2022 YOY Change 2023 2022 YOY Change Net Sales Orders 2,361 1,810 30% 10,830 9,487 14% Average Sales Price (in Thousands) $629 $578 9% $622 $653 (5%) Cancellation Rate 11.6% 24.4% (52%) 12.1% 13.5% (11%) Home Closings 3,190 3,797 (16%) 11,495 12,64
Slide 4: First Quarter and Full Year 2024 Guidance Metrics
First Quarter and Full Year 2024 Guidance Metrics First Quarter 2024 Full Year 2024 Ending Active Community Count 320 to 325 320 to 325 Home Closings Approximately 2,700 At Least 12,000 Average Sales Price Approximately $600,000 Approximately $600,000 Home Closings Gross Margin 23.0% to 23.5% 23.0%
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 Monthly Net Sales Orders by Consumer Group Q4 2022 Q4 2023 46% 42% 34% 29% 25% 24% Entry Level Move-Up Resort Lifestyle Monthly Net Sales Orders per Community 2022 2023 3.1 2.9 3.1 2.6 2.7 2.8 2.4 2.4 2.1 1.9 Q1 Q2 Q3 Q4
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 4Q23 VA Jumbo 7% 1% 751 Average FICO Score FHA 20% 24% Average Downpayment Conventional 72% $455,000 Average Loan Amount Mortgage Capture Rate 86% 40% Averag
Slide 7: Focused on Driving Enhanced Profitability and Returns
Focused on Driving Enhanced Profitability and Returns Operational Initiatives Land-Lighter Balance Sheet Balanced Capital Allocation • Balanced To-be-Built and Spec Home Strategy • Opportunistic and Disciplined Land Investment • Invest for Smart Growth to Drive Returns • Pace and Price Management •
Slide 8: Capital Allocation Balances Liquidity, Growth and Returns
Capital Allocation Balances Liquidity, Growth and Returns Reinvest in Our In 2023, ▪ Balanced capital Business allocation strategy aims to deliver shareholder $827M returns over the course Operating Cash Flow of a housing cycle Generated ▪ Significant investment Return Cash to Shareholders Balance S
Slide 9: Disciplined Land Investment Supported by Strong Lot Portfolio
Homebuilding Lot Supply(1) Disciplined Land Investment Supported by Strong Lot 74,794 74,787 72,362 Portfolio Owned 51% 49% 47% Q4 2023 Highlights Controlled 49% 51% 53% • Disciplined land investment strategy focuses on prime land locations in core submarkets 4Q 2021 4Q 2022 4Q 2023 • 72,362 owned a
Slide 10: Well-Capitalized Balance Sheet Provides Financial Flexibility
Debt Maturity Summary as of Q4 2023 (in Millions) Well-Capitalized Balance Sheet $1,800 Revolving Credit Facilities Loans Payable Senior Notes Provides Financial Flexibility $1,000 Q4 2023 Highlights $20 $1 $100 • $1.8 billion total liquidity $104 $65 $527 $450 $500 $204 • $799 million unrestricted
Slide 11: Innovative Digital Sales Capabilities Driving Efficiencies
Innovative Digital Sales Capabilities Driving Efficiencies Oct. 2020 Quick Move-In Reservation System 48% Launch Shoppers can reserve spec homes with an online shopping cart March 2021 To-Be-Built 1.0 4Q23 online reservation-to-sales conversion Reservation System Launch Shoppers can choose their lot
Slide 12: Appendix
Appendix
Slide 13: About Taylor Morrison
West Bay Area Portland Sacramento Seattle About Taylor Morrison Southern Calif ornia Central Austin Dallas-Fort Worth Denv er 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 hou
Slide 14: 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 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 2023 2024 $722M IPO Sold Acquired Acquired Increased Became a Entered the Ac
Slide 16: Committed to ESG Progress and Transparency
Committed to ESG Progress and Transparency 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 Program to provide talented bus
Slide 17: Historical Operating Data by Region
Historical Operating Data by Region 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q4 2023 vs Q4 2022 Net Sales Orders East 5,395 1,027 1,121 1,041 939 4,128 1,079 1,047 940 902 3,968 (4%) Central 3,800 887 642 450 310 2,289 674 808 641 602 2,725 94% West 5,215 1,140
Slide 18: Disclosures
Disclosures
Slide 19: 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 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) 2023 2022 2023 2022 Net income $ 172,585 $ 275,331 $ 768,929 $ 1,052,800 Legal settlements (1)
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Debt to Capitalization Ratios Reconciliation As of December 31, As of September As of December 31, (Dollars in thousands) 2023 30, 2023 2022 Total debt $ 2,017,102 $ 1,992,077 $ 2,483,861 Plus: unamortized debt issuance cost, net 8,375 8,815 10,767 Less: mortgage
Slide 22: 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