Taylor Morrison Home Corporation · NYSE:TMHC
Taylor Morrison Home — Q1 2022 Earnings Presentation
22 slides from Taylor Morrison Home's earnings presentation, Apr 27, 2022
Slide 1: Investor Presentation First Quarter 2022
Investor Presentation First Quarter 2022
Slide 2: Q1 2022 Highlights
Q1 2022 Highlights Closings Gross Margin Average Order Price • Home closings of 2,768 were above the mid-point of the prior guidance range despite continued supply chain constraints, which +450bps +24% intensified during the quarter. Process streamlining, product and to 23.1% to $683,000 option rati
Slide 3: Key Metrics Snapshot
Key Metrics Snapshot Q1 2022 Q1 2021 Change Operating Statistics Net Sales Orders 3,054 4,492 -32% Net Sales Orders Average Sales Price (in Thousands) $683 $550 24% Cancellation Rate 6.4% 6.0% 40 bps Home Closings 2,768 2,821 -2% Home Closings Average Sales Price (in Thousands) $594 $483 23% Backlog
Slide 4: Management's Outlook for Select Financial Metrics
Management’s Outlook for Select Financial Metrics Second Quarter 2022 Full Year 2022 Ending Active Community Count 310 to 315 Around 350 Home Closings 3,000 to 3,200 14,000 to 15,000 Average Sales Price Not Provided At Least $625,000 GAAP Home Closings Gross Margin Approximately 24% At Least 24.5% S
Slide 5: ROE-Driven Focus on Enhanced Operational and Capital Efficiencies
ROE-Driven Focus on Home Closings Gross Margin(1) at least Enhanced Operational 23.1% 24.5% and Capital Efficiencies 21.2% 21.6% 20.3% 18.6% 19.1% 16.6% • Operational Initiatives • Floorplan and Option Rationalization • Option Packages versus Design Center Approach • Value Engineering 1Q21 2Q21 3Q21
Slide 6: Robust Land Pipeline Supports Future Growth
Years of Supply Controlled Lot Percentage Robust Land Pipeline Total Owned Supports Future Growth 5.5 5.6 5.6 38% 39% 5.0 4.9 31% 31% 4.7 26% 23% 3.7 3.8 3.8 Q1 2022 Highlights 3.5 3.5 3.2 • Disciplined land investment strategy focuses on prime land locations in core submarkets 2017 2018 2019 2020 2
Slide 7: Backed by a Well-Capitalized Balance Sheet
Share Repurchases (in Millions) Net Debt-to-Capitalization Ratio Backed by a Well- $281 Capitalized Balance Sheet 40.1% 34.1% 35.7% mid- $157 20% Range $103 Q1 2022 Highlights • Net debt-to-capital ratio expected to decline to mid-20% range by the end of 2022 2019 2020 2021 1Q21 4Q21 1Q22 4Q22 Guida
Slide 8: Guided by a Balanced Capital Allocation Philosophy
Guided by a Balanced Capital Allocation Philosophy Allocate Capital for Long-Term Value Creation We aim to enhance the long-term value of our company by allocating capital with a balanced and disciplined approach to drive profitable growth through a housing cycle Balance Sheet Stewardship Reinvest i
Slide 9: Diverse Product Portfolio Serves All Major Buyer Groups
Diverse Product Portfolio Serves All Major Buyer Groups Net Sales Orders by Consumer Type 22% 25% 55-Plus Active Lifestyle 46% 46% Move Up 32% 29% Entry Level 1Q21 1Q22 Monthly Net Sales Orders per Community 4.3 3.8 3.6 3.4 3.4 3.3 3.3 3.2 3.1 3.1 2.8 3Q21 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 4Q21 1Q22 202
Slide 10: Local Market Scale Across Coast-to-Coast Footprint
Mix of Home Closings by Region Local Market Scale Across Coast-to-Coast Footprint 25% 36% 39% West 28% 28% 25% Central 8 Markets 13 Markets 47% 36% 37% East Top 5 Builder Top 10 Builder 2019 2020 2021 10
Slide 11: Financial Services
Financial Services Q1 2022 Highlights Borrower Snapshot Unit Product Mix Suite of Services Benefits • 753 Average FICO Score • 82% Conventional • Mortgage Lending • Pre-Qualification of Nearly All Buyers • 77% Average LTV Ratio • 16% Government • Title Insurance • Valuable Backlog Management • $435,
Slide 12: Achieved Scale and Diversification for Long-Term Success
Achieved Scale and Diversification for Long-Term Success Regional M&A and Strategic Refinement Enhanced Public Market Liquidity Large Scale M&A Operational Effectiveness 2013 2014 2015 2016 2017 2018 2019 2020 2021 Became a fully- floated public Acquired William Recognized as company following Lyon
Slide 13: Significant Growth Evident Across Key Metrics
Significant Growth Evident Across Key Metrics Home Closings Total Revenue ($ in Billions) $7.5 13,699 12,524 $6.1 9,964 8,760 $4.8 8,032 $4.2 7,369 $3.9 $3.6 6,311 5,642 $3.0 $2.7 2014 2015 2016 2017 2018 2019 2020 2021 2014 2015 2016 2017 2018 2019 2020 2021 Gross Profit ($ in Millions) Stockholder
Slide 14: Canvas, our Curated Design Package Approach
Canvas, our Curated Design Package Approach • Canvas packages are thoughtfully curated to offer homebuyers an improved, easier design experience than the traditional design center approach • Package collections—which are available at five budget levels—include features with the highest design appeal
Slide 15: Suite of Digital Tools Enhance Efficiency and Customer Experience
Suite of Digital Tools Enhance Efficiency and Customer Experience 15 Note: Results as of March 22, 2022. TBB reservations were introduced in March 2021 with 10 communities and ended the year with 32 participating communities.
Slide 16: Build-to-Rent Business Addresses Lifestyle Rental Opportunity
Build-to-Rent Business Addresses Lifestyle Rental Opportunity • We entered the BTR market in 2019 by way of a strategic relationship with Christopher Todd Communities • Focused on leveraging core production homebuilder strengths to deliver innovative, single-family rental communities that fill a voi
Slide 17: Taylor Morrison is Committed to Sustainability Progress
Taylor Morrison is Committed to Sustainability Progress People First Building for the Future Transparency and Accountability ~3,000 100 percent 7 years team members homes built with TM LiveWell ® healthy living products America’s Most Trusted® Homebuilder (2016-2022) 40,100+ 5,048 100 percent hours
Slide 18: Appendix
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Slide 19: Who We Are
Who We Are West Bay Area Portland Sacramento Seattle Southern California Central Denver Headquartered in Scottsdale, Arizona, Taylor Morrison is one of the Las Vegas nation’s largest homebuilders and developers with operations in Phoenix Austin many of the highest-growth housing markets across 11 st
Slide 20: Historical Operating Data by Region
Historical Operating Data by Region Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Q1 2022 Q1 2022 vs Q1 2021 Net Sales Orders East 1,361 1,176 1,548 1,384 5,469 1,777 1,302 1,279 1,037 5,395 1,027 -42% Central 906 1,003 1,133 824 3,866 1,072 850 921 957 3,800 887 -17% Wes
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Net Homebuilding Debt to Capitalization Ratio Reconciliation ($ in thousands) March 31, 2022 December 31, 2021 March 31, 2021 Total Debt $ 3,048,373 $ 3,302,124 $ 3,025,587 Less amortized debt issuance premiums, net 2,311 2,322 2,354 Less mortgage warehouse borrow
Slide 22: 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