Taylor Morrison Home Corporation · NYSE:TMHC
Taylor Morrison Home — Q1 2023 Earnings Presentation
20 slides from Taylor Morrison Home's earnings presentation, Apr 26, 2023
Slide 1: Investor Presentation First Quarter 2023
Investor Presentation First Quarter 2023
Slide 2: At a Glance
At a Glance as of 2022 as of the first quarter 2023 $8.2 billion 73,000 $635,000 total revenue homebuilding lots owned & controlled average home closing price 12,647 5.9 years 23.9% home closings total homebuilding lot supply (3.5 years owned) return on equity 19 324 $2.0 billion operating markets a
Slide 3: Key Metric Comparison
Key Metric Comparison Operating Statistics Q1 2023 Q1 2022 Year-Over-Year Change Net Sales Orders 2,854 3,054 (7%) Net Sales Orders Average Sales Price (in Thousands) $626 $683 (8%) Cancellation Rate (% of Gross Sales Orders) 14.0% 6.4% 770 bps Home Closings 2,541 2,768 (8%) Home Closings Average Sa
Slide 4: Second Quarter and Full Year 2023 Guidance Metrics
Second Quarter and Full Year 2023 Guidance Metrics Second Quarter 2023 Full Year 2023 Ending Active Community Count 320 to 325 320 to 325 Home Closings 2,600 to 2,700 10,000 to 11,000 Average Sales Price $630,000 to $635,000 Around $625,000 GAAP Home Closings Gross Margin 23.0% to 23.5% Approximatel
Slide 5: Strong Performance Reflective of Operational Enhancements
Home Closings Gross Margin Strong Performance Reflective 23.1% 23.9% of Operational Enhancements 18.6% Operational Initiatives • Strategic Selling and Balanced To-be-Built and Spec Home Mix • Floorplan and Option Rationalization • Spec and Model Home Inventory Management 1Q 2021 1Q 2022 1Q 2023 • “C
Slide 6: Opportunistic Land Investment Enabled by Strong Lot Portfolio
Homebuilding Lot Supply Opportunistic Land 73,000 77,000 Investment Enabled by 73,000 Strong Lot Portfolio Controlled 32% 39% 42% Q1 2023 Highlights 68% Owned 61% 58% • Disciplined land investment strategy focuses on prime land locations in core submarkets 1Q 2021 1Q 2022 1Q 2023 • 73,000 owned and
Slide 7: Well-Capitalized Balance Sheet Provides Financial Flexibility
Debt Maturity Summary as of Q1 2023 (in Millions) Well-Capitalized Balance Sheet Revolving Credit Facilities Loans Payable Senior Notes Provides Financial Flexibility $2,000 $1,000 $12 Q1 2023 Highlights $100 $8 $73 • $2.0 billion total available liquidity $350 $60 $33 $527 $450 $500 $152 • $878 mil
Slide 8: Capital Allocation Balances Liquidity, Growth and Returns
Capital Allocation Balances Liquidity, Growth and Returns ▪ Balanced capital Reinvest in Our In 2022, allocation strategy aims Business to deliver shareholder returns over the course $1.1B of a housing cycle Operating Cash Flow Generated ▪ Significant investment in organic and non- Return Cash to Sh
Slide 9: Diverse Product Portfolio Serves All Major Buyer Groups
Diverse Product Portfolio Serves All Major Buyer Groups Net Sales Orders by Consumer Type 25% 23% Resort Lifestyle 46% 48% Move Up 30% 29% Entry Level 1Q22 1Q23 Monthly Net Sales Orders per Community 3.1 2.9 2.6 2.1 1.9 1Q22 2Q22 3Q22 4Q22 1Q23 9
Slide 10: Financial Services
Financial Services Q1 2023 Highlights Borrower Snapshot Unit Product Mix Suite of Services Benefits • 756 Average FICO Score • 82% Conventional • Mortgage Lending • Pre-Qualification of Nearly All Buyers • 75% Average LTV Ratio • 16% Government • Title Insurance • Valuable Backlog Management • $469,
Slide 11: Innovative Digital Sales Capabilities Driving Efficiencies
Innovative Digital Sales Capabilities Driving Efficiencies Oct. 2020 Quick Move-In Reservation System 2022 online reservations Launch by the numbers Shoppers can reserve spec homes with an online shopping cart March 2021 To-Be-Built 1.0 32% Conversion rate, our highest lead source Reservation System
Slide 12: Committed to Ongoing ESG Progress and Transparency
Committed to Ongoing ESG Progress and Transparency 2019 2020 2021 2022 Published inaugural ESG Became a founding Established Diversity, Announced intention to Report partner of the Building Equity and Inclusion measure our greenhouse Talent Foundation to Steering Committees gas emissions baseline La
Slide 13: Introducing a First-of-its-Kind Board Fellowship
Introducing a First-of-its-Kind Board Fellowship Introducing Our 2023 Fellows Recognizing the importance of greater board diversity, we are proud to have created a first-of-its-kind board fellowship program to grant board training opportunities to under-represented diverse candidates. Hannah Choi Gr
Slide 14: Appendix
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Slide 15: 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 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 $722M IPO Sold Canadian Acquired JEH Acquired Increased Became a fully- Ente
Slide 17: Historical Operating Data by Region
Historical Operating Data by Region Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Q1 2023 Q1 2023 vs Q1 2022 Net Sales Orders East 1,777 1,302 1,279 1,037 5,395 1,027 1,121 1,041 939 4,128 1,079 5% Central 1,072 850 921 957 3,800 887 642 450 310 2,289 674 (24%) West 1,643
Slide 18: Disclosures
Disclosures
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures As of As of As of March 31, December 31, March 31, ($ in thousands) 2023 2022 2022 Total debt $ 2,301,878 $ 2,483,861 $ 3,048,373 Plus: unamortized debt issuance cost/(premium), net 10,193 10,767 (2,311) Less: mortgage warehouse borrowings $ (146,334) (306,072) (2
Slide 20: 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