Taylor Morrison Home Corporation · NYSE:TMHC
Taylor Morrison Home — Q4 2022 Earnings Presentation
24 slides from Taylor Morrison Home's earnings presentation, Feb 15, 2023
Slide 1: Investor Presentation Fourth Quarter 2022
Investor Presentation Fourth Quarter 2022
Slide 2: At a Glance
At a Glance as of 2022 as of the fourth quarter 2022 $8.2 billion 75,000 $626,000 total revenue homebuilding lots owned & controlled average home closing price 12,647 5.9 years 24.4% home closings total homebuilding lot supply return on equity 19 324 $1.8 billion operating markets active selling com
Slide 3: Fourth Quarter 2022 Highlights
Fourth Quarter 2022 Highlights • Home closings gross margin improved 190 basis points to 23.5 percent on a reported basis and 290 basis points to 24.5 percent excluding inventory impairment charges. • The improvement was driven by pricing gains achieved in prior quarters and the ongoing benefit of o
Slide 4: Key Metric Comparison
Key Metric Comparison Operating Statistics Q4 2022 Q4 2021 Change 2022 2021 Change Net Sales Orders 1,810 3,124 (42%) 9,487 14,410 (34%) Net Sales Orders Average Sales Price (in Thousands) $578 $648 (11%) $653 $604 8% Cancellation Rate (% of Gross Sales Orders) 24.4% 8.2% 1,620 bps 13.5% 6.5% 700 bp
Slide 5: First Quarter 2023 Guidance Metrics
First Quarter 2023 Guidance Metrics Ending Active Community Count 325 to 330 Home Closings 2,300 to 2,400 in Q1 and 10,000 to 11,000 in 2023 Average Sales Price $630,000 to $640,000 GAAP Home Closings Gross Margin Approximately 23.5% SG&A % of Home Closings Revenue Approximately 11% Effective Tax Ra
Slide 6: Internal Initiatives and Scale Synergies Evident in Profitability Metrics
Home Closings Gross Margin Internal Initiatives and Scale Reported Adjusted (Pre-Impairment) Synergies Evident in 25.5% Profitability Metrics 24.5% 23.5% 25.2% Operational Initiatives 21.6% 20.3% • Floorplan and Option Rationalization • Spec and Model Home Inventory Management 4Q21 4Q22 2021 2022 •
Slide 7: Opportunistic Land Investment Enabled by Strong Lot Portfolio
Homebuilding Lot Supply Opportunistic Land 77,000 Investment Enabled by 75,000 Strong Lot Portfolio Controlled 38% 41% Q4 2022 Highlights Owned 62% 59% • Disciplined land investment strategy focuses on prime land locations in core submarkets 2021 2022 • 75,000 owned and controlled homebuilding lots
Slide 8: Well-Capitalized Balance Sheet Provides Financial Flexibility
Debt Maturity Summary as of Q4 2022 (in Millions) Well-Capitalized Balance Sheet $1,800 Revolving Credit Facilities Loans Payable Senior Notes Provides Financial Flexibility $1,000 Q4 2022 Highlights $8 $100 $53 • $1.8 billion total available liquidity $527 $450 $500 $350 $29 $10 • $724 million unre
Slide 9: Capital Allocation Balances Liquidity, Growth and Returns
Capital Allocation Balances Liquidity, Growth and Returns ▪ Balanced capital Reinvest in Our In 2022, allocation strategy aims Business to deliver shareholder returns over the course $1.1B of a housing cycle Operating Cash Flow Generated ▪ Significant investment in organic and non- Return Cash to Sh
Slide 10: Diverse Product Portfolio Serves All Major Buyer Groups
Diverse Product Portfolio Serves All Major Buyer Groups Net Sales Orders by Consumer Type 24% 25% Resort Lifestyle 51% 46% Move Up 25% 29% Entry Level 4Q21 4Q22 Monthly Net Sales Orders per Community 3.4 3.2 1.9 4Q20 4Q21 4Q22 10
Slide 11: Financial Services
Financial Services Q4 2022 Highlights Borrower Snapshot Unit Product Mix Suite of Services Benefits • 753 Average FICO Score • 78% Conventional • Mortgage Lending • Pre-Qualification of Nearly All Buyers • 76% Average LTV Ratio • 19% Government • Title Insurance • Valuable Backlog Management • $461,
Slide 12: Leading the Industry in Digital Innovation
Leading the Industry in Digital Innovation Oct. 2020 Quick Move-In Reservation System 2022 online reservations by the numbers Launch Shoppers can reserve spec homes with an online shopping cart 32% Conversion rate, our highest lead source March 2021 To-Be-Built 1.0 Reservation System Launch Shoppers
Slide 13: Introducing a First-of-its-Kind Board Fellowship
Introducing a First-of-its-Kind Board Fellowship Introducing Our 2023 Fellows Recognizing the importance of greater board diversity, we are proud to have created a first-of-its-kind board fellowship program to grant board training opportunities to under-represented diverse candidates. Hannah Choi Gr
Slide 14: 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 15: Appendix
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Slide 16: About Taylor Morrison
West Bay Area Portland Sacramento Seattle Southern California About Taylor Morrison Central Austin Dallas-Fort Worth Denver Las Vegas Phoenix Headquartered in Scottsdale, Arizona, Taylor Morrison Houston (NYSE:TMHC) is a leading land developer and East homebuilder with operations in 19 housing marke
Slide 17: Milestones
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 2022 $722M IPO Sold Canadian Acquired JEH Acquired Increased Became a fully- Ente
Slide 18: Historical Operating Data by Region
Historical Operating Data by Region 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Q4 2022 vs Q4 2021 Net Sales Orders East 5,469 1,777 1,302 1,279 1,037 5,395 1,027 1,121 1,041 939 4,128 (9%) Central 3,866 1,072 850 921 957 3,800 887 642 450 310 2,289 (68%) West 5,73
Slide 19: Disclosures
Disclosures
Slide 20: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted Net Income and Adjusted Earnings Per Common Share Three Months Ended Twelve Months Ended December 31, December 31, ($ in thousands, except per share data) 2022 2021 2022 2021 Net income available to TMHC $ 275,331 $ 272,724 $ 1,052,800 $ 663,026 Inventory
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted Home Closings Gross Margin Three Months Ended Twelve Months Ended December 31, December 31, ($ in thousands) 2022 2021 2022 2021 Home closings revenue $ 2,378,167 $ 2,391,130 $ 7,889,371 $ 7,171,433 Cost of home closings $ 1,819,710 $ 1,875,303 $ 5,904,45
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted net income, adjusted earnings per common share and adjusted income before income taxes and related margin are non-GAAP financial measures that reflect the net income/(loss) available to the Company excluding, to the extent applicable in a given period, th
Slide 23: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Debt to Capitalization Ratios Reconciliation In addition to the results reported in accordance with accounting principles As of As of As of generally accepted in the United States (“GAAP”), we have provided ($ in thousands) December 31, 2022 September 30, 2022 Dec
Slide 24: 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