Taylor Morrison Reports Second Quarter 2024 Results
Taylor Morrison Home (NYSE: TMHC) reported second quarter 2024 results with net income of $199 million, or $1.86 per diluted share. Adjusted net income was $211 million, or $1.97 per diluted share. Key highlights include:
- Net sales orders increased 3% to 3,111
- Home closings revenue of $1.9 billion
- Home closings gross margin of 23.8% (23.9% adjusted)
- Repurchased 1.7 million common shares for $105 million
- Total liquidity of $1.3 billion
The company updated its full-year 2024 guidance, now expecting 12,600 to 12,800 home closings with a gross margin around 24%. Taylor Morrison remains confident in its diversified strategy and long-term growth targets.
Taylor Morrison Home (NYSE: TMHC) ha riportato i risultati del secondo trimestre 2024 con un utile netto di 199 milioni di dollari, ovvero 1,86 dollari per azione diluita. L'utile netto rettificato è stato di 211 milioni di dollari, pari a 1,97 dollari per azione diluita. I punti salienti includono:
- Gli ordini netti di vendita sono aumentati del 3% a 3.111
- Ricavi da chiusure di abitazioni di 1,9 miliardi di dollari
- Margine lordo delle chiusure di abitazioni del 23,8% (23,9% rettificato)
- Riacquistati 1,7 milioni di azioni ordinarie per 105 milioni di dollari
- Liquidità totale di 1,3 miliardi di dollari
L'azienda ha aggiornato la sua previsione per l'intero anno 2024, ora prevedendo tra 12.600 e 12.800 chiusure di abitazioni con un margine lordo attorno al 24%. Taylor Morrison rimane fiduciosa nella sua strategia diversificata e nei suoi obiettivi di crescita a lungo termine.
Taylor Morrison Home (NYSE: TMHC) informó sobre los resultados del segundo trimestre de 2024 con un ingreso neto de 199 millones de dólares, o 1.86 dólares por acción diluida. El ingreso neto ajustado fue de 211 millones de dólares, o 1.97 dólares por acción diluida. Los puntos clave incluyen:
- Los pedidos de ventas netas aumentaron un 3% a 3,111
- Ingresos por cierres de viviendas de 1.9 mil millones de dólares
- Margen bruto de cierres de viviendas del 23.8% (23.9% ajustado)
- Se recompraron 1.7 millones de acciones comunes por 105 millones de dólares
- Liquidez total de 1.3 mil millones de dólares
La compañía actualizó su guía para todo el año 2024, ahora espera entre 12,600 y 12,800 cierres de viviendas con un margen bruto alrededor del 24%. Taylor Morrison sigue confiando en su estrategia diversificada y en sus objetivos de crecimiento a largo plazo.
테일러 모리슨 홈(Taylor Morrison Home) (NYSE: TMHC)은 2024년 2분기 실적을 발표하며 순이익이 1억 9,900만 달러, 즉 희석 주당 1.86달러라고 밝혔습니다. 조정된 순이익은 2억 1,100만 달러, 즉 희석 주당 1.97달러였습니다. 주요 내용은 다음과 같습니다:
- 순매출 주문이 3% 증가하여 3,111건에 이르렀습니다.
- 주택 종료 수익 19억 달러
- 주택 종료 총 마진 23.8%(조정 후 23.9%)
- 1.7백만 주식 재매입, 1억 5백만 달러
- 총 유동성 13억 달러
회사는 2024년 전체 연간 전망을 업데이트하며, 현재 주택 종료를 12,600건에서 12,800건으로 예상하고 있으며 총 마진은 24% 정도입니다. 테일러 모리슨은 자사의 다각화 전략과 장기 성장 목표에 대한 확신을 계속 가지고 있습니다.
Taylor Morrison Home (NYSE: TMHC) a annoncé ses résultats du deuxième trimestre 2024 avec un bénéfice net de 199 millions de dollars, soit 1,86 dollar par action diluée. Le bénéfice net ajusté était de 211 millions de dollars, soit 1,97 dollar par action diluée. Les points saillants incluent :
- Les commandes de ventes nettes ont augmenté de 3 % pour atteindre 3 111
- Recettes des clôtures de maisons de 1,9 milliard de dollars
- Marge brute des clôtures de maisons de 23,8 % (23,9 % ajustée)
- Rachat de 1,7 million d'actions ordinaires pour 105 millions de dollars
- Liquidité totale de 1,3 milliard de dollars
L'entreprise a mis à jour ses prévisions pour l'année 2024, s'attendant désormais à 12 600 à 12 800 clôtures de maisons avec une marge brute d'environ 24 %. Taylor Morrison reste confiante dans sa stratégie diversifiée et ses objectifs de croissance à long terme.
Taylor Morrison Home (NYSE: TMHC) hat die Ergebnisse des zweiten Quartals 2024 mit einem Nettogewinn von 199 Millionen Dollar bzw. 1,86 Dollar pro verwässerter Aktie veröffentlicht. Der bereinigte Nettogewinn betrug 211 Millionen Dollar oder 1,97 Dollar pro verwässerter Aktie. Zu den wichtigsten Höhepunkten gehören:
- Die Nettoverkaufsaufträge stiegen um 3 % auf 3.111
- Umsatz aus Wohnungsübergaben von 1,9 Milliarden Dollar
- Bruttomarge aus Wohnungsübergaben von 23,8 % (23,9 % bereinigt)
- 1,7 Millionen Stammaktien für 105 Millionen Dollar zurückgekauft
- Gesamte Liquidität von 1,3 Milliarden Dollar
Das Unternehmen hat seine Prognose für das Gesamtjahr 2024 aktualisiert und erwartet nun 12.600 bis 12.800 Wohnungsübergaben mit einer Bruttomarge von etwa 24 %. Taylor Morrison bleibt zuversichtlich in ihrer diversifizierten Strategie und den langfristigen Wachstumszielen.
- Net sales orders increased 3% to 3,111, indicating strong demand
- Home closings gross margin of 23.8% (23.9% adjusted) exceeded expectations
- Updated full-year guidance with increased home closings expectation of 12,600 to 12,800
- Strong liquidity position of $1.3 billion
- Repurchased 1.7 million common shares for $105 million, returning value to shareholders
- Mortgage capture rate increased to 89% from 86% a year ago
- Home closings revenue decreased 4% to $1.9 billion
- Average closing price declined 6% to $600,000
- SG&A as a percentage of home closings revenue increased to 10.2% from 9.2% a year ago
- Net homebuilding debt-to-capital ratio increased to 22.8% from 15.4% a year ago
Insights
Taylor Morrison's second quarter financial results reflect a mixed but generally stable performance in a challenging housing market. Despite a
From a real estate perspective, Taylor Morrison's decision to maintain a high land acquisition and development spend of
Examining the broader market implications, Taylor Morrison's performance is indicative of the current housing market's resilience despite economic uncertainties. The company's adjustment to an expected home closings gross margin around
Second quarter 2024 highlights included the following, as compared to the second quarter of 2023:
- Net sales orders increased
3% to 3,111, driven by a monthly absorption pace of 3.0 per community - Home closings revenue of
$1.9 billion $600,000 - Home closings gross margin was
23.8% , or23.9% on an adjusted basis - 80,677 homebuilding lots owned and controlled, representing 6.7 years of total supply, of which 2.9 years was owned
- Repurchased 1.7 million common shares for
$105 million - Homebuilding debt to capitalization of
25.4% on a gross basis and22.8% net of$247 million - Total liquidity of
$1.3 billion
"In the second quarter, our team delivered solid results, highlighted by both our closings volume and home closings gross margin exceeding our expectations. Following this strength, we now expect to deliver between 12,600 to 12,800 homes this year at a home closings gross margin around
Palmer continued, "Our balanced and diversified approach offers improved production efficiency, enhanced gross margin and return potential, which we expect will contribute to strong results that exceed our historic performance. Our confidence in this outlook is reflected in the long-term targets that we introduced last quarter. These include:
"Our long-term targets are based on the evolution of our business to a strategically diversified, well-scaled operating platform that we believe is exceptionally well positioned to take advantage of strong housing fundamentals in the years ahead. Since expanding our company's breadth and depth through smart and accretive growth and refining our operational capabilities through product and process optimization, I am immensely proud of our team's execution and confident in our ability to achieve these targets on a consistent go-forward basis to deliver attractive results for our shareholders. As we head into the remainder of the year and into 2025, while we are awaiting more clarity from the Federal Reserve after next week's meeting, we are cautiously optimistic that lower interest rates and a continuation of positive housing fundamentals has set the stage for continued growth and positive momentum in our business."
Business Highlights (All comparisons are of the current quarter to the prior-year quarter, unless indicated.)
Homebuilding
- Home closings revenue decreased
4% to$1.9 billion 6% decline in the average closing price to$600,000 2% increase in closings to 3,200 homes. - The home closings gross margin was
23.8% on a reported basis and23.9% adjusted for an inventory impairment. This compared to a reported home closings gross margin of24.2% in the prior-year period. - Net sales orders increased
3% to 3,111, driven by a6% increase in ending community count to 347, which was partially offset by a slight decline in the monthly absorption pace to 3.0 per community from 3.1 a year ago. The average net sales order price decreased2% to$601,000 - SG&A as a percentage of home closings revenue increased to
10.2% from9.2% a year ago. - Cancellations equaled
9.4% of gross orders, down from11.2% a year ago. - Backlog at quarter end was 6,256 homes with a sales value of
$4.2 billion $56,000
Land Portfolio
- Homebuilding land acquisition and development spend totaled
$611 million $397 million 40% of the total versus54% a year ago. - Homebuilding lot supply was 80,677 homesites, of which
57% was controlled and43% was owned. This compared to a homebuilding lot supply of 74,182 homesites at the end of the first quarter, of which53% was controlled and47% was owned. - Based on trailing twelve-month home closings, total homebuilding lots represented 6.7 years of total supply, of which 2.9 years was owned.
Financial Services
- The mortgage capture rate increased to
89% , up from86% a year ago. - Borrowers had an average credit score of 751 and debt-to-income ratio of
40% .
Balance Sheet
- At quarter end, total liquidity was approximately
$1.3 billion $247 million $1.1 billion - The gross homebuilding debt to capital ratio was
25.4% , down from29.7% a year ago. Including$247 million 22.8% , up from15.4% a year ago. - The Company repurchased 1.7 million shares for
$105 million $298 million
Business Outlook
Third Quarter 2024
- Home closings are expected to be approximately 3,200
- Average closing price is expected to be around
$600,000 - Home closings gross margin is expected to be around
24% - Ending active community count is expected to be between 330 to 340
- Effective tax rate is expected to be approximately
25% - Diluted share count is expected to be approximately 106 million
Full Year 2024
- Home closings are now expected to be between 12,600 to 12,800
- Average closing price is expected to be between
$600,000 $610,000 - Home closings gross margin is now expected to be around
24% - Ending active community count is expected to be between 330 to 340
- SG&A as a percentage of home closings revenue is expected to be in the high
-9% range - Effective tax rate is expected to be approximately
25% - Diluted share count is now expected to be approximately 107 million
- Land and development spend is expected to be between
$2.3 billion $2.5 billion - Share repurchases are expected to total approximately
$300 million
Quarterly Financial Comparison
(Dollars in thousands) | Q2 2024 | Q2 2023 | Q2 2024 vs. Q2 2023 | ||
Total Revenue | $ 1,991,053 | $ 2,060,564 | (3.4) % | ||
Home Closings Revenue, net | $ 1,920,127 | $ 1,996,747 | (3.8) % | ||
Home Closings Gross Margin | $ 457,421 | $ 482,510 | (5.2) % | ||
23.8 % | 24.2 % | 40 bps decrease | |||
SG&A | $ 196,735 | $ 183,683 | 7.1 % | ||
% of Home Closings Revenue | 10.2 % | 9.2 % | 100 bps increase |
Earnings Conference Call Webcast
A public webcast to discuss the Company's earnings will be held later today at 8:30 a.m. ET. A live audio webcast of the conference call will be available on Taylor Morrison's website at www.taylormorrison.com on the Investor Relations portion of the site under the Events & Presentations tab. For call participants, the dial-in number is (833) 470-1428 and conference ID is 302287. The call will be recorded and available for replay on the Company's website.
About Taylor Morrison
Headquartered in
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 to serve, to differ materially from those expressed in, or implied by, these statements. You can identify these statements by the fact that they do not relate to matters of a strictly factual or historical nature and generally discuss or relate to forecasts, estimates or other expectations regarding future events. Generally, the words ""anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "may," "will," "can," "could," "might," "should" and similar expressions identify forward-looking statements, including statements related to expected financial, operating and performance results, planned transactions, planned objectives of management, future developments or conditions in the industries in which we participate and other trends, developments and uncertainties that may affect our business in the future.
Such risks, uncertainties and other factors include, among other things: inflation or deflation; changes in general and local economic conditions; slowdowns or severe downturns in the housing market; homebuyers' ability to obtain suitable financing; increases in interest rates, taxes or government fees; shortages in, disruptions of and cost of labor; higher cancellation rates of existing agreements of sale; competition in our industry; any increase in unemployment or underemployment; the seasonality of our business; the physical impacts of climate change and the increased focus by third-parties on sustainability issues; our ability to obtain additional performance, payment and completion surety bonds and letters of credit; significant home warranty and construction defect claims; our reliance on subcontractors; failure to manage land acquisitions, inventory and development and construction processes; availability of land and lots at competitive prices; decreases in the market value of our land inventory; new or changing government regulations and legal challenges; our compliance with environmental laws and regulations regarding climate change; our ability to sell mortgages we originate and claims on loans sold to third parties; governmental regulation applicable to our financial services and title services business; the loss of any of our important commercial lender relationships; our ability to use deferred tax assets; raw materials and building supply shortages and price fluctuations; our concentration of significant operations in certain geographic areas; risks associated with our unconsolidated joint venture arrangements; information technology failures and data security breaches; costs to engage in and the success of future growth or expansion of our operations or acquisitions or disposals of businesses; costs associated with our defined benefit and defined contribution pension schemes; damages associated with any major health and safety incident; our ownership, leasing or occupation of land and the use of hazardous materials; existing or future litigation, arbitration or other claims; negative publicity or poor relations with the residents of our communities; failure to recruit, retain and develop highly skilled, competent people; utility and resource shortages or rate fluctuations; constriction of the capital markets; risks related to instability in the banking system; risks associated with civil unrest, acts of terrorism, threats to national security, the conflicts in
In addition, other such risks and uncertainties may be found in our most recent annual report on Form 10-K and our subsequent quarterly reports filed with the Securities and Exchange Commission (SEC) as such factors may be updated from time to time in our periodic filings with the SEC. We undertake no duty to update any forward-looking statement, whether as a result of new information, future events or changes in our expectations, except as required by applicable law.
Taylor Morrison Home Corporation Condensed Consolidated Statements of Operations (In thousands, except per share amounts, unaudited) | |||||||
Three Months Ended | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Home closings revenue, net | $ 1,920,127 | $ 1,996,747 | $ 3,556,382 | $ 3,609,342 | |||
Land closings revenue | 13,234 | 12,628 | 20,459 | 17,148 | |||
Financial services revenue | 48,916 | 41,914 | 95,875 | 77,063 | |||
Amenity and other revenue | 8,776 | 9,275 | 18,089 | 18,868 | |||
Total revenue | 1,991,053 | 2,060,564 | 3,690,805 | 3,722,421 | |||
Cost of home closings | 1,462,706 | 1,514,237 | 2,705,915 | 2,741,750 | |||
Cost of land closings | 18,703 | 12,703 | 23,905 | 17,048 | |||
Financial services expenses | 28,106 | 25,342 | 53,249 | 47,490 | |||
Amenity and other expenses | 9,250 | 8,597 | 18,603 | 16,882 | |||
Total cost of revenue | 1,518,765 | 1,560,879 | 2,801,672 | 2,823,170 | |||
Gross margin | 472,288 | 499,685 | 889,133 | 899,251 | |||
Sales, commissions and other marketing costs | 113,956 | 113,034 | 216,556 | 205,794 | |||
General and administrative expenses | 82,779 | 70,649 | 150,343 | 136,910 | |||
Net income from unconsolidated entities | (2,628) | (3,186) | (5,379) | (5,115) | |||
Interest expense/(income), net | 4,087 | (5,120) | 4,044 | (6,231) | |||
Other expense, net | 6,877 | 8,549 | 7,472 | 3,715 | |||
Income before income taxes | 267,217 | 315,759 | 516,097 | 564,178 | |||
Income tax provision | 67,303 | 80,854 | 125,022 | 138,045 | |||
Net income before allocation to non-controlling interests | 199,914 | 234,905 | 391,075 | 426,133 | |||
Net income attributable to non-controlling interests | (454) | (303) | (1,345) | (480) | |||
Net income | $ 199,460 | $ 234,602 | $ 389,730 | $ 425,653 | |||
Earnings per common share: | |||||||
Basic | $ 1.89 | $ 2.15 | $ 3.68 | $ 3.91 | |||
Diluted | $ 1.86 | $ 2.12 | $ 3.61 | $ 3.85 | |||
Weighted average number of shares of common stock: | |||||||
Basic | 105,500 | 109,210 | 105,979 | 108,822 | |||
Diluted | 107,249 | 110,856 | 107,961 | 110,466 | |||
Taylor Morrison Home Corporation Condensed Consolidated Balance Sheets (In thousands, unaudited) | |||
June 30, | December 31, | ||
Assets | |||
Cash and cash equivalents | $ 246,845 | $ 798,568 | |
Restricted cash | 1,928 | 8,531 | |
Total cash | 248,773 | 807,099 | |
Real estate inventory: | |||
Owned inventory | 6,151,776 | 5,473,828 | |
Consolidated real estate not owned | 134,700 | 71,618 | |
Total real estate inventory | 6,286,476 | 5,545,446 | |
Land deposits | 204,551 | 203,217 | |
Mortgage loans held for sale | 313,026 | 193,344 | |
Lease right of use assets | 71,932 | 75,203 | |
Prepaid expenses and other assets, net | 330,093 | 290,925 | |
Other receivables, net | 214,919 | 184,518 | |
Investments in unconsolidated entities | 381,571 | 346,192 | |
Deferred tax assets, net | 67,825 | 67,825 | |
Property and equipment, net | 316,706 | 295,121 | |
Goodwill | 663,197 | 663,197 | |
Total assets | $ 9,099,069 | $ 8,672,087 | |
Liabilities | |||
Accounts payable | $ 310,724 | $ 263,481 | |
Accrued expenses and other liabilities | 518,541 | 549,074 | |
Lease liabilities | 82,059 | 84,999 | |
Customer deposits | 349,066 | 326,087 | |
Estimated development liabilities | 27,416 | 27,440 | |
Senior notes, net | 1,469,574 | 1,468,695 | |
Loans payable and other borrowings | 404,242 | 394,943 | |
Revolving credit facility borrowings | — | — | |
Mortgage warehouse borrowings | 276,205 | 153,464 | |
Liabilities attributable to consolidated real estate not owned | 134,700 | 71,618 | |
Total liabilities | $ 3,572,527 | $ 3,339,801 | |
Stockholders' equity | |||
Total stockholders' equity | 5,526,542 | 5,332,286 | |
Total liabilities and stockholders' equity | $ 9,099,069 | $ 8,672,087 | |
Homes Closed and Home Closings Revenue, Net: | |||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||
Homes Closed | Home Closings Revenue, Net | Average Selling Price | |||||||||||||||
(Dollars in thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||
East | 1,237 | 1,228 | 0.7 % | $ 691,129 | $ 732,279 | (5.6) % | $ 559 | $ 596 | (6.2 %) | ||||||||
Central | 864 | 936 | (7.7) % | 480,522 | 612,630 | (21.6) % | 556 | 655 | (15.1) % | ||||||||
West | 1,099 | 961 | 14.4 % | 748,476 | 651,838 | 14.8 % | 681 | 678 | 0.4 % | ||||||||
Total | 3,200 | 3,125 | 2.4 % | $ 1,920,127 | $ 1,996,747 | (3.8) % | $ 600 | $ 639 | (6.1) % | ||||||||
Six Months Ended June 30, | |||||||||||||||||
Homes Closed | Home Closings Revenue, Net | Average Selling Price | |||||||||||||||
(Dollars in thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||
East | 2,170 | 2,232 | (2.8) % | $ 1,232,859 | $ 1,333,890 | (7.6) % | $ 568 | $ 598 | (5.0 %) | ||||||||
Central | 1,696 | 1,667 | 1.7 % | 952,554 | 1,076,025 | (11.5) % | 562 | 645 | (12.9 %) | ||||||||
West | 2,065 | 1,767 | 16.9 % | 1,370,969 | 1,199,427 | 14.3 % | 664 | 679 | (2.2) % | ||||||||
Total | 5,931 | 5,666 | 4.7 % | $ 3,556,382 | $ 3,609,342 | (1.5) % | $ 600 | $ 637 | (5.8) % | ||||||||
Net Sales Orders: | |||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||
Net Sales Orders | Sales Value | Average Selling Price | |||||||||||||||
(Dollars in thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||
East | 1,160 | 1,047 | 10.8 % | $ 616,846 | $ 582,944 | 5.8 % | $ 532 | $ 557 | (4.5 %) | ||||||||
Central | 815 | 808 | 0.9 % | 485,036 | 489,142 | (0.8 %) | 595 | 605 | (1.7) % | ||||||||
West | 1,136 | 1,168 | (2.7 %) | 767,925 | 782,046 | (1.8 %) | 676 | 670 | 0.9 % | ||||||||
Total | 3,111 | 3,023 | 2.9 % | $ 1,869,807 | $ 1,854,132 | 0.8 % | $ 601 | $ 613 | (2.0 %) | ||||||||
Six Months Ended June 30, | |||||||||||||||||
Net Sales Orders | Sales Value | Average Selling Price | |||||||||||||||
(Dollars in thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||
East | 2,455 | 2,126 | 15.5 % | $ 1,393,707 | $ 1,227,463 | 13.5 % | $ 568 | $ 577 | (1.6) % | ||||||||
Central | 1,719 | 1,482 | 16.0 % | 963,455 | 873,972 | 10.2 % | 560 | 590 | (5.1) % | ||||||||
West | 2,623 | 2,269 | 15.6 % | 1,752,408 | 1,538,390 | 13.9 % | 668 | 678 | (1.5) % | ||||||||
Total | 6,797 | 5,877 | 15.7 % | $ 4,109,570 | $ 3,639,825 | 12.9 % | $ 605 | $ 619 | (2.3) % | ||||||||
Sales Order Backlog: | |||||||||||||||||
As of June 30, | |||||||||||||||||
Sold Homes in Backlog | Sales Value | Average Selling Price | |||||||||||||||
(Dollars in thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||
East | 2,356 | 2,477 | (4.9) % | $ 1,641,116 | $ 1,626,635 | 0.9 % | $ 697 | $ 657 | 6.1 % | ||||||||
Central | 1,423 | 1,532 | (7.1) % | 875,064 | 1,009,441 | (13.3) % | 615 | 659 | (6.7) % | ||||||||
West | 2,477 | 2,156 | 14.9 % | 1,681,639 | 1,458,395 | 15.3 % | 679 | 676 | 0.4 % | ||||||||
Total | 6,256 | 6,165 | 1.5 % | $ 4,197,819 | $ 4,094,471 | 2.5 % | $ 671 | $ 664 | 1.1 % | ||||||||
Ending Active Selling Communities: | |||||
As of | Change | ||||
June 30, 2024 | June 30, 2023 | ||||
East | 122 | 103 | 18.4 % | ||
Central | 106 | 103 | 2.9 % | ||
West | 119 | 121 | (1.7 %) | ||
Total | 347 | 327 | 6.1 % | ||
Reconciliation of Non-GAAP Financial Measures
In addition to the results reported in accordance with accounting principles generally accepted in
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, the impact of inventory or land impairment charges, impairment of investment in unconsolidated entities, pre-acquisition abandonment charges, gains/losses on land transfers to joint ventures, extinguishment of debt, net, and legal reserves or settlements that the Company deems not to be in the ordinary course of business and in the case of adjusted net income and adjusted earnings per common share, the tax impact due to such items. Adjusted home closings gross margin is a non-GAAP financial measure calculated on GAAP home closings gross margin (which is inclusive of capitalized interest), excluding inventory impairment charges. EBITDA and Adjusted EBITDA are non-GAAP financial measures that measure performance by adjusting net income before allocation to non-controlling interests to exclude, as applicable, interest expense/(income), net, amortization of capitalized interest, income taxes, depreciation and amortization (EBITDA), non-cash compensation expense, if any, inventory or land impairment charges, impairment of investment in unconsolidated entities, pre-acquisition abandonment charges, gains/losses on land transfers to joint ventures, extinguishment of debt, net and legal reserves or settlements that the Company deems not to be in the ordinary course of business, in each case, as applicable in a given period. Net homebuilding debt to capitalization ratio is a non-GAAP financial measure we calculate by dividing (i) total debt, plus unamortized debt issuance cost/(premium), net, and less mortgage warehouse borrowings, net of unrestricted cash and cash equivalents ("net homebuilding debt"), by (ii) total capitalization (the sum of net homebuilding debt and total stockholders' equity).
Management uses these non-GAAP financial measures to evaluate our performance on a consolidated basis, as well as the performance of our regions, and to set targets for performance-based compensation. We also use the ratio of net homebuilding debt to total capitalization as an indicator of overall leverage and to evaluate our performance against other companies in the homebuilding industry. In the future, we may include additional adjustments in the above-described non-GAAP financial measures to the extent we deem them appropriate and useful to management and investors.
We believe that adjusted net income, adjusted earnings per common share, adjusted income before income taxes and related margin, as well as EBITDA and adjusted EBITDA, are useful for investors in order to allow them to evaluate our operations without the effects of various items we do not believe are characteristic of our ongoing operations or performance and also because such metrics assist both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted EBITDA also provides an indicator of general economic performance that is not affected by fluctuations in interest rates or effective tax rates, levels of depreciation or amortization, or unusual items. Because we use the ratio of net homebuilding debt to total capitalization to evaluate our performance against other companies in the homebuilding industry, we believe this measure is also relevant and useful to investors for that reason. We believe that adjusted home closings gross margin is useful to investors because it allows investors to evaluate the performance of our homebuilding operations without the varying effects of items or transactions we do not believe are characteristic of our ongoing operations or performance.
These non-GAAP financial measures should be considered in addition to, rather than as a substitute for, the comparable
A reconciliation of (i) adjusted net income and adjusted earnings per common share, (ii) adjusted income before income taxes and related margin, (iii) adjusted home closings gross margin, (iv) EBITDA and adjusted EBITDA and (v) net homebuilding debt to capitalization ratio to the comparable GAAP measures is presented below.
Adjusted Net Income and Adjusted Earnings Per Common Share | |||
Three Months Ended | |||
(Dollars in thousands, except per share data) | 2024 | 2023 | |
Net income | $ 199,460 | $ 234,602 | |
Legal reserves or settlements(1) | 6,290 | — | |
Inventory impairments(2) | 2,325 | — | |
Fair value adjustment for land held for sale(3) | 6,782 | — | |
Tax impact due to above non-GAAP reconciling items | (3,878) | — | |
Adjusted net income | $ 210,979 | $ 234,602 | |
Basic weighted average number of shares | 105,500 | 109,210 | |
Adjusted earnings per common share - Basic | $ 2.00 | $ 2.15 | |
Diluted weighted average number of shares | 107,249 | 110,856 | |
Adjusted earnings per common share - Diluted | $ 1.97 | $ 2.12 | |
Adjusted Income Before Income Taxes and Related Margin | |||
Three Months Ended | |||
(Dollars in thousands) | 2024 | 2023 | |
Income before income taxes | 267,217 | 315,759 | |
Legal reserves or settlements(1) | 6,290 | — | |
Inventory impairments(2) | 2,325 | — | |
Fair value adjustment for land held for sale(3) | 6,782 | — | |
Adjusted income before income taxes | $ 282,614 | $ 315,759 | |
Total revenue | 1,991,053 | 2,060,564 | |
Income before income taxes margin | 13.4 % | 15.3 % | |
Adjusted income before income taxes margin | 14.2 % | 15.3 % | |
Adjusted Home Closings Gross Margin | |||
Three Months Ended June 30, | |||
(Dollars in thousands) | 2024 | 2023 | |
Home closings revenue, net | $ 1,920,127 | $ 1,996,747 | |
Cost of home closings | 1,462,706 | 1,514,237 | |
Home closings gross margin | $ 457,421 | $ 482,510 | |
Inventory impairments(2) | 2,325 | — | |
Adjusted home closings gross margin | $ 459,746 | $ 482,510 | |
Home closings gross margin as a percentage of home closings revenue, net | 23.8 % | 24.2 % | |
Adjusted home closings gross margin as a percentage of home closings revenue, net | 23.9 % | 24.2 % | |
EBITDA and Adjusted EBITDA Reconciliation | |||
Three Months Ended | |||
(Dollars in thousands) | 2024 | 2023 | |
Net income before allocation to non-controlling interests | $ 199,914 | $ 234,905 | |
Interest expense/(income), net | 4,087 | (5,120) | |
Amortization of capitalized interest | 28,303 | 37,352 | |
Income tax provision | 67,303 | 80,854 | |
Depreciation and amortization | 3,450 | 1,540 | |
EBITDA | $ 303,057 | $ 349,531 | |
Non-cash compensation expense | 6,072 | 5,271 | |
Legal reserves or settlements(1) | 6,290 | — | |
Inventory impairments (2) | 2,325 | — | |
Fair value adjustment for land held for sale(3) | 6,782 | — | |
Adjusted EBITDA | $ 324,526 | $ 354,802 | |
Total revenue | $ 1,991,053 | $ 2,060,564 | |
Net income before allocation to non-controlling interests as a percentage of total revenue | 10.0 % | 11.4 % | |
EBITDA as a percentage of total revenue | 15.2 % | 17.0 % | |
Adjusted EBITDA as a percentage of total revenue | 16.3 % | 17.2 % | |
(1) | Included in Other expense, net on the unaudited Condensed consolidated statements of operations. |
(2) | Included in Cost of home closings on the unaudited Condensed consolidated statements of operations. |
(3) | Included in Cost of land closings on the unaudited Condensed consolidated statements of operations. |
Net Homebuilding Debt to Capitalization Ratios Reconciliation | |||||
(Dollars in thousands) | As of | As of | As of | ||
Total debt | $ 2,150,021 | $ 2,093,499 | $ 2,393,571 | ||
Plus: unamortized debt issuance cost, net | 7,496 | 7,935 | 9,613 | ||
Less: mortgage warehouse borrowings | (276,205) | (183,174) | (249,898) | ||
Total homebuilding debt | $ 1,881,312 | $ 1,918,260 | $ 2,153,286 | ||
Total equity | 5,526,542 | 5,426,168 | 5,095,313 | ||
Total capitalization | $ 7,407,854 | $ 7,344,428 | $ 7,248,599 | ||
Total homebuilding debt to capitalization ratio | 25.4 % | 26.1 % | 29.7 % | ||
Total homebuilding debt | $ 1,881,312 | $ 1,918,260 | $ 2,153,286 | ||
Less: cash and cash equivalents | (246,845) | (554,287) | (1,227,264) | ||
Net homebuilding debt | $ 1,634,467 | $ 1,363,973 | $ 926,022 | ||
Total equity | 5,526,542 | 5,426,168 | 5,095,313 | ||
Total capitalization | $ 7,161,009 | $ 6,790,141 | $ 6,021,335 | ||
Net homebuilding debt to capitalization ratio | 22.8 % | 20.1 % | 15.4 % | ||
CONTACT:
Mackenzie Aron, VP Investor Relations
(480) 734-2060
investor@taylormorrison.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/taylor-morrison-reports-second-quarter-2024-results-302204494.html
SOURCE Taylor Morrison
FAQ
What were Taylor Morrison's (TMHC) Q2 2024 earnings per share?
How many homes did Taylor Morrison (TMHC) close in Q2 2024?
What is Taylor Morrison's (TMHC) updated home closings guidance for full-year 2024?
What was Taylor Morrison's (TMHC) home closings gross margin in Q2 2024?
How much did Taylor Morrison (TMHC) spend on share repurchases in Q2 2024?
