Taylor Morrison Home Corporation · NYSE:TMHC
Taylor Morrison Home — Q3 2024 Earnings Presentation
23 slides from Taylor Morrison Home's earnings presentation, Oct 23, 2024
Slide 1: Investor Presentation Third Quarter 2024
Investor Presentation Third Quarter 2024
Slide 2: 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 3: Milestones: Value creation journey
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 4: 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 24.8% Mid-to-High 3.2 Range Low-to-Mid Teen Range 20% Range 14.9% 18.8% 2.3 10.3% 2013-19 2024 YTD Target 2013-19 Q3 2024 Target
Slide 5: At a glance
At a glance as of the third quarter 2024 year to date 2024 83,579 $598,000 9,325 total homebuilding lots (58% controlled) average home closing price home closings 6.6 24.8% $5.8 billion years of total lot supply (2.7 years owned) home closings gross margin total revenue 340 14.9% 3.2 active selling
Slide 6: 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 Entry Level 24% 33% Sales by Consumer Group(1) Move Up 43% Attractive coast-to-coast footprint in top markets 6 Note: (1) Data as of Q3 2024.
Slide 7: 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 Q3 2024 VA Jumbo 6% 1% 754 Average FICO Score FHA 17% 23% Average Downpayment Conventional 76% $465,000 Average Loan Amount Mortgage Capture Rate 88% 89% 88%
Slide 8: Disciplined land investment supported by strong lot portfolio
Homebuilding Lot Supply Disciplined land investment 83,579 74,787 supported by strong lot portfolio 72,362 Owned 42% 49% 47% Q3 2024 Highlights 58% Controlled 51% 53% • Disciplined land investment strategy focuses on prime land locations in core submarkets Q4 2022 Q4 2023 Q3 2024 • Deploying land-li
Slide 9: 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 10: Well-capitalized balance sheet provides financial flexibility
Debt Maturity Summary as of Q3 2024 (in Millions) Well-capitalized balance sheet Revolving Credit Facility Loans Payable Senior Notes provides financial flexibility $1,200 $1,000 Q3 2024 Highlights $44 $19 $20 • $1.2 billion total liquidity $527 $450 $500 $105 $149 $104 • $256 million unrestricted c
Slide 11: Our digital sales tools have modernized the homebuying experience
Our digital sales tools have modernized the homebuying experience Online reservations that convert to sales 58% 53% 47% 47% 45% Online reservations as a percentage of gross sales 16% 16% 16% 17% 15% Q3 2023 Q4 2023 1Q 2024 2Q 2024 3Q 2024 11
Slide 12: 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. 40+ build-to-rent owned & controlled communities 9 markets with Yardly operations 2 asset dispositions expected in 4Q 2024 12
Slide 13: Key metrics
Key metrics Operating statistics Third Quarter 2024 Third Quarter 2023 Year-Over-Year Change Ending active selling communities 340 325 5% Net sales orders 2,830 2,592 9% Net sales orders per community per month 2.8 2.7 4% Cancellation rate 9.3% 11.4% (210) bps Home closings 3,394 2,639 29% Backlog u
Slide 14: Fourth quarter and full year 2024 guidance metrics
Fourth quarter and full year 2024 guidance metrics Fourth Quarter 2024 Full Year 2024 Ending active community count 330 to 340 330 to 340 Home closings Approximately 3,400 Approximately 12,725 Average sales price Approximately $610,000 Approximately $600,000 GAAP home closings gross margin Around 24
Slide 15: Appendix
“a eC = o om or <
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 Q3 2024 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 1,140 Central 887 642 450 310 2,289 674 808 641 602 2,725 904 815 747 West 1,1
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 September 30, (Dollars in thousands, except per share data) 2024 2023 Net income $ 251,126 $ 170,691 Inventory impairment charges (1) — 11,791 Loss on extinguishment of debt, net — 269 T
Slide 21: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures Debt to Capitalization Ratios Reconciliation As of As of September 30, As of September 30, (Dollars in thousands) 2024 June 30, 2024 2023 Total debt $ 2,143,223 $ 2,150,021 $ 1,992,077 Plus: unamortized debt issuance cost, net 7,056 7,496 8,815 Less: mortgage ware
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