Taylor Morrison Home Corporation · NYSE:TMHC
Taylor Morrison Home — Q3 2022 Earnings Presentation
18 slides from Taylor Morrison Home's earnings presentation, Oct 26, 2022
Slide 1: Investor Presentation Third Quarter 2022
Investor Presentation Third Quarter 2022
Slide 2: At a Glance
At a Glance as of 2021 as of the third quarter 2022 $7.5 billion 80,000 $650,000 total revenue homebuilding owned and controlled lots average home closing price 13,699 6.1 years 25.8% home closings homebuilding lot supply return on equity 5th 326 $1.4 billion largest homebuilder in the U.S. active s
Slide 3: Third Quarter Highlights
Third Quarter Highlights Closings Gross Margin SG&A • Home closings gross margin, SG&A, earnings per diluted share and return on equity each marked the strongest levels in Taylor Morrison’s history. +630bps -210bps to 27.5% to 7.4% • Home closings and sales were impacted by Hurricane Ian, as well as
Slide 4: Key Metric Comparison
Key Metric Comparison Q3 2022 Q3 2021 Change Operating Statistics Net Sales Orders 2,069 3,372 (39%) Net Sales Orders Average Sales Price (in Thousands) $619 $641 (3%) Cancellation Rate (% of Gross Sales Orders) 15.6% 6.7% 890 bps Home Closings 3,050 3,327 (8%) Home Closings Average Sales Price (in
Slide 5: Internal Initiatives and Scale Synergies Evident in Profitability Metrics
Home Closings Gross Margin(1) Internal Initiatives and Scale 27.5% Synergies Evident in 26.6% Profitability Metrics 21.2% 21.6% 23.1% 18.6% 19.1% Operational Initiatives • Floorplan and Option Rationalization • Option Packages versus Design Center Approach 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 • Value
Slide 6: Conservative Stance to Land Investment Supported by Strong Existing Lot Portfolio
Years of Supply Controlled Lot Percentage(1) Conservative Stance to Land 42% Investment Supported by Total Owned 38% Strong Existing Lot Portfolio 6.1 5.5 5.6 31% 31% 5.0 4.9 4.7 26% 23% Q3 2022 Highlights 3.7 3.8 3.8 3.5 3.5 3.2 • Disciplined land investment strategy focuses on prime land locations
Slide 7: Backed by a Well-Capitalized Balance Sheet
Share Repurchases (in Millions) Backed by a Well-Capitalized Balance Sheet $335 $281 $157 Q3 2022 Highlights $103 • $1.4 billion total available liquidity • $329 million unrestricted cash • $1.1 billion total revolving credit facility capacity, which was 2019 2020 2021 1Q-3Q22 undrawn outside of nor
Slide 8: Capital Allocation Balances Liquidity, Growth and Returns
Capital Allocation Balances Liquidity, Growth and Returns ▪ Balanced capital Reinvest in Our From 2018 to 2021 allocation strategy aims Business to deliver shareholder returns over the course $2.0B Operating Cash Flow of a housing cycle Generated ▪ Significant investment in organic and non- Return C
Slide 9: Diverse Product Portfolio Serves All Major Buyer Groups
Diverse Product Portfolio Serves All Major Buyer Groups Net Sales Orders by Consumer Type 18% 27% Resort Lifestyle 45% 58% Move Up 28% Entry Level 24% 3Q21 3Q22 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 2.6 2.1 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q2
Slide 10: Financial Services
Financial Services Q3 2022 Highlights Borrower Snapshot Unit Product Mix Suite of Services Benefits • 752 Average FICO Score • 78% Conventional • Mortgage Lending • Pre-Qualification of Nearly All Buyers • 77% Average LTV Ratio • 18% Government • Title Insurance • Valuable Backlog Management • $452,
Slide 11: Leading the Industry in Digital Innovation
Leading the Industry in Digital Innovation Oct. 2020 Quick Move-In We recently unveiled an enhanced Reservation System reservation system allowing Launch consumers to build and design their new to-be-built home and “add to cart” with a small deposit. March 2021 To-Be-Built 1.0 Reservation System New
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: Appendix
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Slide 14: About Taylor Morrison
About Taylor Morrison West Bay Area Portland Sacramento Seattle Southern California Headquartered in Scottsdale, Arizona, Taylor Morrison Central (NYSE:TMHC) is a leading land developer and Austin Dallas-Fort Worth homebuilder with operations in 19 housing markets across Denver Las Vegas 11 states.
Slide 15: Transformational Journey Delivered Scale and Diversification
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 ▪ $722M IPO ▪ Sold Canadian ▪ Acquired JEH ▪ Acquired ▪ Increased ▪ Became a full
Slide 16: Historical Operating Data by Region
Historical Operating Data by Region Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2022 vs Q3 2021 Net Sales Orders East 1,361 1,176 1,548 1,384 5,469 1,777 1,302 1,279 1,037 5,395 1,027 1,121 1,041 (19%) Central 906 1,003 1,133 824 3,866 1,072 8
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Net Homebuilding Debt to Capitalization Ratio Reconciliation As of ($ in thousands) September 30, 2022 September 30, 2021 Total Debt $ 2,729,924 $ 3,221,569 Plus: unamortized debt issuance cost/(premium), net 11,242 (2,333) Less: mortgage warehouse borrowings (146
Slide 18: 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