Taylor Morrison Home Corporation · NYSE:TMHC
Taylor Morrison Home — Q4 2021 Earnings Presentation
22 slides from Taylor Morrison Home's earnings presentation, Feb 8, 2022
Slide 1: Investor Presentation Fourth Quarter 2021
Investor Presentation Fourth Quarter 2021
Slide 2: Q4 2021 Highlights
Q4 2021 Highlights Closings Gross Margin Average Order Price • Home closings revenue increased 61% to $2.4 billion, driven by 39% growth in home closings and a 16% increase in average +330bps +23% closing price. to 21.6% to $648,000 • Home closings gross margin improved 330 basis points to 21.6% per
Slide 3: Q4 2021 and Full Year 2021 Snapshot
Q4 2021 and Full Year 2021 Snapshot Q4 2021 Q4 2020 Change 2021 2020 Change Operating Statistics Net Sales Orders 3,124 3,724 -16% 14,410 15,068 -4% Net Sales Orders per Community per Month 3.2 3.4 -6% 3.6 3.3 9% Net Sales Orders Average Sales Price (in Thousands) $648 $527 23% $602 $485 24% Cancell
Slide 4: Management's Outlook for Select Financial Metrics
Management’s Outlook for Select Financial Metrics First Quarter 2022 Full Year 2022 Ending Active Community Count 310 to 315 Around 350 Home Closings 2,600 to 2,900 14,000 to 15,000 Average Sales Price Not Provided At Least $600,000 GAAP Home Closings Gross Margin Approximately 22% At Least 23.5% SG
Slide 5: ROE-Driven Focus on Enhanced Operational and Capital Efficiencies
ROE-Driven Focus on Home Closings Gross Margin(1) At Least Enhanced Operational 21.2% 21.6% 23.5% 20.3% and Capital Efficiencies 18.3% 18.6% 19.1% 16.6% • Operational Initiatives • Floorplan and Option Rationalization • Option Packages versus Design Center Approach • Value Engineering 4Q20 1Q21 2Q21
Slide 6: Land Update
Years of Homebuilding Lots Based on Trailing Twelve-Month Closings Land Update Total Owned 5.5 5.6 5.2 5.0 4.9 4.7 3.8 3.7 3.8 3.8 3.5 3.2 Q4 2021 Highlights • Invested $2.0 billion in land acquisition and development in 2021 2016 2017 2018 2019 2020 2021 • Targeting $2.3 to 2.4 billion in homebuild
Slide 7: Capital Update
Share Repurchases (in Millions) Net Debt-to-Capitalization Ratio Capital Update $281 38.7% 34.1% Mid- 20% $157 Range $103 Q4 2021 Highlights • Net debt-to-capital ratio expected to decline to mid-20% range by the end of 2022 2019 2020 2021 4Q20 4Q21 4Q22 • Reduced net debt-to-capital ratio to 34.1%
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 23% 24% 55-Plus Active Lifestyle 44% Move Up 51% 33% Entry Level 25% 4Q20 4Q21 Monthly Net Sales Orders per Community 4.3 3.8 3.6 3.4 3.4 3.3 3.3 3.2 3.1 2.8 2.6 2.6 2.5 2.4 2.3 1Q19 1Q20 2Q19 3Q19 4Q19 2Q20 3Q
Slide 10: Coast-to-Coast Footprint with Local Market Depth
Coast-to-Coast Footprint Mix of Home Closings by Region with Local Market Depth 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 Q4 2021 Highlights Borrower Snapshot Unit Product Mix Suite of Services Benefits • 752 Average FICO Score • 84% Conventional • Mortgage Lending • Pre-Qualification of Nearly All Buyers • 78% Average LTV Ratio • 14% Government • Title Insurance • Valuable Backlog Management • $417,
Slide 12: Consumer Mix Milestones: Achieved Scale and Diversification
Achieved Scale and Diversification for Long-Term Success Regional M&A and Strategic Refinement Enhanced Public Market Liquidity Large Scale M&A Operational Excellence 2013 2014 2015 2016 2017 2018 2019 2020 2021 Became a fully- floated public Acquired William Recognized as company following Lyon Hom
Slide 13: Significant Growth Evident Across Key Metrics
Significant Growth Evident Across Key Metrics Home Closings Total Revenue ($ 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: Venture, a First-of-its-Kind Digital Community
Venture, a First-of-its- Kind Digital Community 15
Slide 16: Build-to-Rent Operations
Build-to-Rent Operations • 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 void in the market and meet growing dema
Slide 17: Committed to Environmental, Social and Governance Values
Committed to Environmental, Social and Governance Values People First Building for the Future Transparency and Accountability 3,000+ 100 percent 7 years team members homes now offer TM LiveWell ® upgraded products America’s Most Trusted® Homebuilder (2016-22) 7 of 8 3,700+ 100 percent of team member
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 FY 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 2021 vs 2020 Average Active Selling Communities East 159 144 153 145 139 145 129 126 136 126 129 -11% Central 134 134 132 122 113 124 106 101 98 102 100 -19% West 58 100 126 12
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Net Homebuilding Debt to Capitalization Ratio Reconciliation Adjusted Net Income and Adjusted Earnings Per Share Three Months Ended Twelve Months Ended As of December 31, December 31, ($ in thousands) December 31, 2021 September 30, 2021 December 31, 2020 ($ in th
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