Taylor Morrison Home Corporation · NYSE:TMHC
Taylor Morrison Home — Q1 2024 Earnings Presentation
22 slides from Taylor Morrison Home's earnings presentation, Apr 30, 2024
Slide 1: Investor Presentation First Quarter 2024
Investor Presentation First Quarter 2024
Slide 2: At a glance
At a glance as of the first quarter 2024 74,182 $599,000 $1.75 total homebuilding lots average home closing price diluted EPS 6.5 24.0% $50 years of total lot supply home closings gross margin book value per share 3.1 3.7 15.0% years of owned lot supply monthly sales pace return on equity 2
Slide 3: First quarter key metrics
First quarter key metrics Operating Statistics First Quarter 2024 First Quarter 2023 Change Net Sales Orders 3,686 2,854 29% Monthly Sales Pace per Community 3.7 2.9 28% Average Sales Order Price $608,000 $626,000 (3%) Cancellation Rate 7.0% 14.0% (700) bps Home Closings 2,731 2,541 7% Backlog Units
Slide 4: Second quarter and full year 2024 guidance metrics
Second quarter and full year 2024 guidance metrics Second Quarter 2024 Full Year 2024 Ending Active Community Count 330 to 340 330 to 340 Home Closings Approximately 3,000 Approximately 12,500 Average Sales Price Approximately $605,000 $600,000 to $610,000 Home Closings Gross Margin At least 23.5% 2
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 19% Entry Level 37% Sales by Consumer Group(1) Move Up 44% Attractive coast-to-coast footprint in top markets 8 Note: (1) Data as of Q1 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 Q1 2024 VA Jumbo 6% 1% 751 Average FICO Score FHA 16% 23% Average Downpayment Conventional 76% $462,000 Average Loan Amount Mortgage Capture Rate 87% 40% Ave
Slide 10: Disciplined land investment supported by strong lot portfolio
Homebuilding Lot Supply Disciplined land investment supported by strong lot 74,787 72,362 74,182 portfolio Owned 49% 47% 47% Q1 2024 Highlights Controlled 51% 53% 53% • Disciplined land investment strategy focuses on prime land locations in core submarkets Q4 2022 Q4 2023 Q1 2024 • 74,182 owned and
Slide 11: Capital allocation balances liquidity, growth and returns
Capital allocation balances liquidity, growth and returns ▪ Balanced capital Reinvest in Our In 2023, allocation strategy aims Business to deliver shareholder $827M returns over the course Operating Cash Flow of a housing cycle Generated ▪ Significant investment to achieve and maintain Return Cash t
Slide 12: Well-capitalized balance sheet provides financial flexibility
Debt Maturity Summary as of Q1 2024 (in Millions) Well-capitalized balance sheet Revolving Credit Facilities Loans Payable Senior Notes provides financial flexibility $1,600 $1,000 Q1 2024 Highlights $36 $12 $100 • $1.6 billion total liquidity $132 $84 $527 $450 $500 $176 • $554 million unrestricted
Slide 13: Our unique digital sales tools have modernized the homebuying experience
Our unique digital sales tools have modernized the homebuying experience Reservations that convert to sales Percentage of gross sales from online reservations 12% 2022 15% 2023 17% 1Q 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. 9,800+ build-to-rent lots owned & controlled 40+ projects in process 9 markets with Yardly operations 14
Slide 15: Appendix
Appendix
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: Committed to sustainability progress and transparency
Committed to sustainability progress and transparency BUILDING FOR THE FUTURE PEOPLE FIRST TRANSPARENCY & ACCOUNTABILITY Measured our carbon footprint Only homebuilder recognized Launched a Board Fellowship across our full value chain on Bloomberg’s Gender- Program to provide talented business Equal
Slide 19: 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 Q1 2024 Q1 2024 vs Q1 2023 Net Sales Orders East 5,395 1,027 1,121 1,041 939 4,128 1,079 1,047 940 902 3,968 1,295 20% Central 3,800 887 642 450 310 2,289 674 808 641 602 2,725 904 34%
Slide 20: Disclosures
Disclosures
Slide 21: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures Debt to Capitalization Ratios Reconciliation As of As of As of (Dollars in thousands) March 31, 2024 December 31, 2023 March 31, 2023 Total debt $ 2,093,499 $ 2,017,102 $ 2,301,878 Plus: unamortized debt issuance cost, net 7,935 8,375 10,193 Less: mortgage warehou
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