Taylor Morrison Home Corporation · NYSE:TMHC
Taylor Morrison Home — Q2 2024 Earnings Presentation
23 slides from Taylor Morrison Home's earnings presentation, Jul 24, 2024
Slide 1: Investor Presentation Second Quarter 2024
Investor Presentation Second Quarter 2024
Slide 2: At a glance
At a glance as of the second quarter 2024 80,677 $600,000 $1.97 total homebuilding lots average home closing price adjusted diluted EPS 6.7 23.9% $52 years of total lot supply adjusted home closings gross margin book value per share 2.9 3.0 13.8% years of owned lot supply monthly sales pace return o
Slide 3: Key metrics
Key metrics Operating statistics Second Quarter 2024 Second Quarter 2023 Change Ending active selling communities 347 327 6% Net sales orders 3,111 3,023 3% Net sales orders per community per month 3.0 3.1 (3%) Net sales orders average sales price (in thousands) $601 $613 (2%) Cancellation rate 9.4%
Slide 4: Third quarter and full year 2024 guidance metrics
Third quarter and full year 2024 guidance metrics Third Quarter 2024 Full Year 2024 Ending active community count 330 to 340 330 to 340 Home closings Approximately 3,200 Between 12,600 to 12,800 Average sales price Approximately $600,000 $600,000 to $610,000 GAAP home closings gross margin Around 24
Slide 5: Milestones
Value creation journey provided critical depth and breadth for long-term performance 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
Slide 6: 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 7: 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 Equity(1) Low-Three Range Mid-to-High 23.9% Low-to-Mid Teen Range 20% Range 2.8 15.4% 2.3 18.8% 10.3% 2013-19 2023 Target 2013-19 2023 Target 2013-1
Slide 8: 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 18% Entry Level 36% Sales by Consumer Group(1) Move Up 46% Attractive coast-to-coast footprint in top markets 8 Note: (1) Data as of Q2 2024.
Slide 9: 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 Q2 2024 VA Jumbo 6% 1% 751 Average FICO Score FHA 19% 23% Average Downpayment Conventional 74% $456,000 Average Loan Amount Mortgage Capture Rate 86% 87% 89%
Slide 10: Disciplined land investment supported by strong lot portfolio
Homebuilding Lot Supply Disciplined land investment supported by strong lot 74,787 72,362 80,677 portfolio Owned 43% 49% 47% Q2 2024 Highlights Controlled 51% 53% 57% • Disciplined land investment strategy focuses on prime land locations in core submarkets Q4 2022 Q4 2023 Q2 2024 • 80,677 owned and
Slide 11: 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 12: Well-capitalized balance sheet provides financial flexibility
Debt Maturity Summary as of Q2 2024 (in Millions) Well-capitalized balance sheet Revolving Credit Facilities Loans Payable Senior Notes provides financial flexibility $1,300 $1,000 Q2 2024 Highlights $36 $3 $11 • $1.3 billion total liquidity $527 $450 $500 $100 $120 $135 $99 • $247 million unrestric
Slide 13: Our unique digital sales tools have modernized the homebuying experience
Our unique digital sales tools have modernized the homebuying experience Online reservations that convert to sales 53% 47% 47% 45% Online reservations as a percentage of gross sales 15% 16% 16% 16% Q3 2023 Q4 2023 1Q 2024 2Q 2024 13
Slide 14: 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. 10,500+ build-to-rent lots owned & controlled 40+ projects in process 9 markets with Yardly operations 14
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 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q2 2024 vs Q2 2023 Net Sales Orders East 1,027 1,121 1,041 939 4,128 1,079 1,047 940 902 3,968 1,295 1,160 11% Central 887 642 450 310 2,289 674 808 641 602 2,725 904 815 1%
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 June 30, (Dollars in thousands, except per share data) 2024 2023 Net income $ 199,460 $ 234,602 Legal reserves or settlements(1) 6,290 — Inventory impairments (2) 2,325 — Fair value adju
Slide 21: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures Net Homebuilding Debt to Capitalization Ratios Reconciliation As of As of As of (Dollars in thousands) June 30, 2024 March 31, 2024 June 30, 2023 Total debt $ 2,150,021 $ 2,093,499 $ 2,393,571 Plus: unamortized debt issuance cost, net 7,496 7,935 9,613 Less: mortg
Slide 22: 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 23: 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