Taylor Morrison Reports Fourth Quarter and Full Year 2024 Results
Rhea-AI Summary
Taylor Morrison (NYSE: TMHC) reported strong Q4 and full-year 2024 results. Q4 net income reached $242 million ($2.30 per diluted share), while adjusted net income was $278 million ($2.64 per diluted share). Full-year 2024 net income was $883 million ($8.27 per diluted share).
Key Q4 highlights include: 11% increase in net sales orders to 2,621, 12% growth in home closings revenue to $2.2 billion, and 12% increase in closings to 3,571 homes at an average price of $608,000. The company maintained a strong gross margin of 24.8%.
Full-year achievements include: $7.8 billion in home closings revenue (up 8%), 12,896 home closings (up 12%), and $348 million in share repurchases. For 2025, the company forecasts deliveries between 13,500 to 14,000 homes with a gross margin range of 23% to 24%.
Positive
- 12% increase in Q4 home closings revenue to $2.2 billion
- 11% growth in Q4 net sales orders to 2,621
- 24.8% Q4 home closings gross margin, up 70 basis points YoY
- Full-year home closings up 12% to 12,896 units
- Share repurchases of $348 million in 2024
- Strong liquidity position of $1.4 billion
Negative
- Cancellation rate increased to 13.1% from 11.6% YoY
- Expected gross margin decline for 2025 (23-24% vs 24.8% in Q4 2024)
- SG&A as percentage of revenue increased 10 basis points YoY for full-year 2024
News Market Reaction
On the day this news was published, TMHC gained 3.30%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Fourth quarter 2024 highlights:
- Net sales orders increased
11% year over year to 2,621 - Monthly absorption pace of 2.6, up from 2.4 a year ago
- Ending outlets of 339, up
4% from a year ago - Home closings revenue of
$2.2 billion 12% year over year - 3,571 closings, up
12% year over year, at an average price of$608,000 - Home closings gross margin of
24.8% and adjusted home closings gross margin of24.9% - 86,153 homebuilding lots owned and controlled
57% controlled off balance sheet, up from53% a year ago
Full year 2024 highlights:
- Home closings revenue of
$7.8 billion 8% year over year- 12,896 home closings, up
12% year over year, at an average price of$601,000
- 12,896 home closings, up
- Home closings gross margin of
24.4% and adjusted home closings gross margin of24.5% - Total homebuilding land spend of
$2.4 billion 43% was development related - Repurchased 5.6 million common shares for
$348 million - Homebuilding debt-to-capitalization of
24.9% on a gross basis and20.0% net of unrestricted cash - Total liquidity of
$1.4 billion
"I am proud to share the strong results of our fourth quarter, which I believe once again distinguished our team's execution and the merits of our diversified consumer and geographic strategy. With strong closings growth, higher margins and cost discipline, we produced a nearly
Palmer continued, "This quarter's results capped off another milestone year for our organization, in which we met or exceeded each of the long-term goals we laid out in early 2024. This included
"By meeting the needs of well-qualified homebuyers with appropriate product offerings in prime community locations, we continue to benefit from healthy demand and pricing resiliency across our portfolio. While 2025 promises to bring new challenges and it is early in the year, we are confident that our long-standing emphasis on capital-efficient growth will yield another year of strong performance. At this time, we are forecasting growth in our total deliveries to between 13,500 to 14,000 homes at a home closings gross margin in the range of
Fourth Quarter Business Highlights (All comparisons are of the current quarter to the prior-year quarter, unless indicated.)
Homebuilding
- Home closings revenue increased
12% to$2.2 billion 12% increase in closings to 3,571 homes and less-than-1% increase in average closing price to$608,000 - Fourth quarter home closings gross margin was
24.8% on a reported basis and24.9% on an adjusted basis, which was up 70 and 80 basis points, respectively, from the reported gross margin of24.1% in the year-ago quarter. - Net sales orders increased
11% to 2,621, driven by an8% improvement in the monthly absorption pace to 2.6 per community and a4% increase in ending community count to 339 outlets. - SG&A as a percentage of home closings revenue decreased 30 basis points to
9.4% from9.7% a year ago. - Cancellations equaled
13.1% of gross orders, up from11.6% a year ago. - Backlog at quarter end was 4,742 homes with a sales value of
$3.2 billion $50,000
Land Portfolio
- Homebuilding land acquisition and development investment totaled
$590 million $537 million 50% of the total versus42% a year ago. - Homebuilding lot supply was 86,153 homesites, of which
57% was controlled off balance sheet. This compared to total lots of 72,362 at the end of 2023, of which53% was controlled. - Based on trailing twelve-month home closings, total homebuilding lots represented 6.6 years of supply, of which 2.8 years was owned.
Financial Services
- The mortgage capture rate was
89% in the fourth quarter, up from86% a year ago. - Borrowers had an average credit score of 752 and average debt-to-income ratio of
39% .
Balance Sheet
- At quarter end, total liquidity was approximately
$1.4 billion $947 million - The gross homebuilding debt to capital ratio was
24.9% . Including$487 million 20.0% . - The Company repurchased 1.4 million shares for
$90 million $348 million $910 million
Business Outlook
First Quarter 2025
- Home closings are expected to be approximately 2,900
- Average closing price is expected to be between
$590,000 $600,000 - Home closings gross margin is expected to be in the high
-23% range - Ending active community count is expected to be between 340 to 345
- Effective tax rate is expected to be approximately
24% - Diluted share count is expected to be approximately 104 million
Full Year 2025
- Home closings are expected to be between 13,500 to 14,000
- Average closing price is expected to be between
$590,000 $600,000 - Home closings gross margin is expected to be between
23% to24% - Ending active community count is expected to be at least 355
- SG&A as a percentage of home closings revenue is expected to be in the mid
-9% range - Effective tax rate is expected to be between
24.5% to25% - Diluted share count is expected to be approximately 102 million
- Homebuilding land acquisition and development investment is expected to be around
$2.6 billion - Share repurchases are expected to be in the range of
$300 million $350 million
Quarterly Financial Comparison
(Dollars in thousands) | Q4 2024 | Q4 2023 | Q4 2024 vs. Q4 2023 | ||
Total Revenue | $ 2,356,489 | $ 2,019,865 | 16.7 % | ||
Home Closings Revenue | $ 2,169,703 | $ 1,937,632 | 12.0 % | ||
Home Closings Gross Margin | $ 537,700 | $ 466,980 | 15.1 % | ||
24.8 % | 24.1 % | 70 bps increase | |||
Adjusted Home Closings Gross Margin | $ 540,411 | $ 466,980 | 15.7 % | ||
24.9 % | 24.1 % | 80 bps increase | |||
SG&A | $ 204,258 | $ 188,212 | 8.5 % | ||
% of Home Closings Revenue | 9.4 % | 9.7 % | 30 bps decrease |
Annual Financial Comparison
(Dollars in thousands) | 2024 | 2023 | 2024 vs. 2023 | ||
Total Revenue | $ 8,168,136 | $ 7,417,831 | 10.1 % | ||
Home Closings Revenue | $ 7,755,219 | $ 7,158,857 | 8.3 % | ||
Home Closings Gross Margin | $ 1,891,476 | $ 1,707,456 | 10.8 % | ||
24.4 % | 23.9 % | 50 bps increase | |||
Adjusted Home Closings Gross Margin | $ 1,896,512 | $ 1,719,247 | 10.3 % | ||
24.5 % | 24.0 % | 50 bps increase | |||
SG&A | $ 770,498 | $ 698,707 | 10.3 % | ||
% of Home Closings Revenue | 9.9 % | 9.8 % | 10 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. To receive a unique passcode and dial-in information, please register here. The webcast will be recorded and available for replay on Taylor Morrison's website at www.taylormorrison.com on the Investor Relations portion of the site under the News & Events tab.
Upcoming Investor Day
As previously announced, Taylor Morrison will host its first-ever Investor Day on Thursday, March 6, 2025, in
A live webcast of the presentations and question-and-answer sessions will be available on the Investor Relations page of Taylor Morrison's website at www.taylormorrison.com. Presentations are expected to begin at 12 p.m. ET and conclude at 3:30 p.m. ET. The webcast replay and presentation materials will be available on the Investor Relations webpage within 24 hours of the event.
In-person attendance is available for institutional investors and analysts only and requires advanced registration. Those interested in attending the event in-person are asked to register here.
About Taylor Morrison
Headquartered in Scottsdale,
For more information about Taylor Morrison, please visit www.taylormorrison.com.
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; failure to develop and maintain relationships with suitable land banks; 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, including as a result of tariffs; 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 | Twelve Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Home closings revenue, net | $ 2,169,703 | $ 1,937,632 | $ 7,755,219 | $ 7,158,857 | |||
Land closings revenue | 33,138 | 29,532 | 81,417 | 60,971 | |||
Financial services revenue | 53,930 | 43,204 | 199,459 | 160,312 | |||
Amenity and other revenue | 99,718 | 9,497 | 132,041 | 37,691 | |||
Total revenue | 2,356,489 | 2,019,865 | 8,168,136 | 7,417,831 | |||
Cost of home closings | 1,632,003 | 1,470,652 | 5,863,743 | 5,451,401 | |||
Cost of land closings | 22,694 | 24,598 | 73,609 | 55,218 | |||
Financial services expenses | 28,039 | 23,372 | 108,592 | 93,990 | |||
Amenity and other expenses | 109,743 | 9,139 | 137,980 | 34,149 | |||
Total cost of revenue | 1,792,479 | 1,527,761 | 6,183,924 | 5,634,758 | |||
Gross margin | 564,010 | 492,104 | 1,984,212 | 1,783,073 | |||
Sales, commissions and other marketing costs | 121,822 | 113,543 | 456,092 | 418,134 | |||
General and administrative expenses | 82,436 | 74,669 | 314,406 | 280,573 | |||
Net income from unconsolidated entities | (261) | (1,708) | (6,347) | (8,757) | |||
Interest expense/(income), net | 5,893 | (564) | 13,316 | (12,577) | |||
Other expense, net | 46,790 | 80,884 | 50,627 | 87,567 | |||
Loss on extinguishment of debt, net | — | 26 | — | 295 | |||
Income before income taxes | 307,330 | 225,254 | 1,156,118 | 1,017,838 | |||
Income tax provision | 63,307 | 52,092 | 269,548 | 248,097 | |||
Net income before allocation to non-controlling interests | 244,023 | 173,162 | 886,570 | 769,741 | |||
Net income attributable to non-controlling interests | (1,570) | (577) | (3,261) | (812) | |||
Net income | $ 242,453 | $ 172,585 | $ 883,309 | $ 768,929 | |||
Earnings per common share: | |||||||
Basic | $ 2.35 | $ 1.61 | $ 8.43 | $ 7.09 | |||
Diluted | $ 2.30 | $ 1.58 | $ 8.27 | $ 6.98 | |||
Weighted average number of shares of common stock: | |||||||
Basic | 103,189 | 107,227 | 104,813 | 108,424 | |||
Diluted | 105,218 | 108,969 | 106,846 | 110,145 | |||
Taylor Morrison Home Corporation Condensed Consolidated Balance Sheets (In thousands, unaudited)
| |||
December 31, | December 31, | ||
Assets | |||
Cash and cash equivalents | $ 487,151 | $ 798,568 | |
Restricted cash | 15 | 8,531 | |
Total cash | 487,166 | 807,099 | |
Owned inventory | 6,162,889 | 5,473,828 | |
Consolidated real estate not owned | 71,195 | 71,618 | |
Total real estate inventory | 6,234,084 | 5,545,446 | |
Land deposits | 299,668 | 203,217 | |
Mortgage loans held for sale | 207,936 | 193,344 | |
Lease right of use assets | 68,057 | 75,203 | |
Prepaid expenses and other assets, net | 370,642 | 290,925 | |
Other receivables, net | 217,703 | 184,518 | |
Investments in unconsolidated entities | 439,721 | 346,192 | |
Deferred tax assets, net | 76,248 | 67,825 | |
Property and equipment, net | 232,709 | 295,121 | |
Goodwill | 663,197 | 663,197 | |
Total assets | $ 9,297,131 | $ 8,672,087 | |
Liabilities | |||
Accounts payable | $ 270,266 | $ 263,481 | |
Accrued expenses and other liabilities | 632,250 | 549,074 | |
Lease liabilities | 78,998 | 84,999 | |
Income taxes payable | 2,243 | — | |
Customer deposits | 239,151 | 326,087 | |
Estimated development liabilities | 4,365 | 27,440 | |
Senior notes, net | 1,470,454 | 1,468,695 | |
Loans payable and other borrowings | 475,569 | 394,943 | |
Revolving credit facility borrowings | — | — | |
Mortgage warehouse borrowings | 174,460 | 153,464 | |
Liabilities attributable to consolidated real estate not owned | 71,195 | 71,618 | |
Total liabilities | $ 3,418,951 | $ 3,339,801 | |
Stockholders' equity | |||
Total stockholders' equity | 5,878,180 | 5,332,286 | |
Total liabilities and stockholders' equity | $ 9,297,131 | $ 8,672,087 | |
Homes Closed and Home Closings Revenue, Net:
| |||||||||||||||||
Three Months Ended December 31, | |||||||||||||||||
Homes Closed | Home Closings Revenue, Net | Average Selling Price | |||||||||||||||
(Dollars in thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||
East | 1,432 | 1,252 | 14.4 % | $ 835,590 | $ 712,461 | 17.3 % | $ 584 | $ 569 | 2.6 % | ||||||||
Central | 924 | 767 | 20.5 % | 501,184 | 436,080 | 14.9 % | 542 | $ 569 | (4.7) % | ||||||||
West | 1,215 | 1,171 | 3.8 % | 832,929 | 789,091 | 5.6 % | 686 | $ 674 | 1.8 % | ||||||||
Total | 3,571 | 3,190 | 11.9 % | $ 2,169,703 | $ 1,937,632 | 12.0 % | $ 608 | $ 607 | 0.2 % | ||||||||
Twelve Months Ended December 31, | |||||||||||||||||
Homes Closed | Home Closings Revenue, Net | Average Selling Price | |||||||||||||||
(Dollars in thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||
East | 4,922 | 4,480 | 9.9 % | $ 2,826,628 | $ 2,619,322 | 7.9 % | $ 574 | $ 585 | (1.9 %) | ||||||||
Central | 3,552 | 3,143 | 13.0 % | 1,969,381 | 1,935,500 | 1.8 % | 554 | 616 | (10.1 %) | ||||||||
West | 4,422 | 3,872 | 14.2 % | 2,959,210 | 2,604,035 | 13.6 % | 669 | 673 | (0.6) % | ||||||||
Total | 12,896 | 11,495 | 12.2 % | $ 7,755,219 | $ 7,158,857 | 8.3 % | $ 601 | $ 623 | (3.5) % | ||||||||
Net Sales Orders:
| |||||||||||||||||
Three Months Ended December 31, | |||||||||||||||||
Net Sales Orders | Sales Value | Average Selling Price | |||||||||||||||
(Dollars in thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||
East | 993 | 902 | 10.1 % | $ 532,647 | $ 579,540 | (8.1 %) | $ 536 | $ 643 | (16.6 %) | ||||||||
Central | 784 | 602 | 30.2 % | 411,750 | 339,973 | 21.1 % | 525 | 565 | (7.1) % | ||||||||
West | 844 | 857 | (1.5 %) | 587,451 | 565,747 | 3.8 % | 696 | 660 | 5.5 % | ||||||||
Total | 2,621 | 2,361 | 11.0 % | $ 1,531,848 | $ 1,485,260 | 3.1 % | $ 584 | $ 629 | (7.2 %) | ||||||||
Twelve Months Ended December 31, | |||||||||||||||||
Net Sales Orders | Sales Value | Average Selling Price | |||||||||||||||
(Dollars in thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||
East | 4,588 | 3,968 | 15.6 % | $ 2,537,245 | $ 2,366,528 | 7.2 % | $ 553 | $ 596 | (7.2) % | ||||||||
Central | 3,250 | 2,725 | 19.3 % | 1,773,792 | 1,588,169 | 11.7 % | 546 | 583 | (6.3) % | ||||||||
West | 4,410 | 4,137 | 6.6 % | 2,991,700 | 2,784,803 | 7.4 % | 678 | 673 | 0.7 % | ||||||||
Total | 12,248 | 10,830 | 13.1 % | $ 7,302,737 | $ 6,739,500 | 8.4 % | $ 596 | $ 622 | (4.2) % | ||||||||
Sales Order Backlog:
| |||||||||||||||||
As of December 31, | |||||||||||||||||
Sold Homes in Backlog | Sales Value | Average Selling Price | |||||||||||||||
(Dollars in thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||
East | 1,737 | 2,071 | (16.1) % | $ 1,190,884 | $ 1,480,268 | (19.5) % | $ 686 | $ 715 | (4.1 %) | ||||||||
Central | 1,098 | 1,299 | (15.5) % | 668,574 | 864,162 | (22.6) % | 609 | 665 | (8.4) % | ||||||||
West | 1,907 | 1,919 | (0.6 %) | 1,332,690 | 1,300,200 | 2.5 % | 699 | 678 | 3.1 % | ||||||||
Total | 4,742 | 5,289 | (10.3) % | $ 3,192,148 | $ 3,644,630 | (12.4) % | $ 673 | $ 689 | (2.3 %) | ||||||||
Ending Active Selling Communities:
| |||||
As of | Change | ||||
December 31, | December 31, | ||||
East | 124 | 108 | 14.8 % | ||
Central | 99 | 93 | 6.5 % | ||
West | 116 | 126 | (7.9 %) | ||
Total | 339 | 327 | 3.7 % | ||
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 and real estate 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 as 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 and real estate 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 segments, 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 financial 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 | Twelve Months Ended | ||||||
(Dollars in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||
Net income | $ 242,453 | $ 172,585 | $ 883,309 | $ 768,929 | |||
Legal reserves or settlements | 17,392 | 64,665 | 23,682 | 64,665 | |||
Real estate impairment charges | 20,530 | — | 29,637 | 11,791 | |||
Pre-acquisition abandonment charges | 6,545 | 1,176 | 9,453 | 4,235 | |||
Loss on extinguishment of debt, net | — | 26 | — | 295 | |||
Tax impact due to above non-GAAP reconciling items | (9,160) | (15,216) | (14,638) | (19,737) | |||
Adjusted net income | $ 277,760 | $ 223,236 | $ 931,443 | $ 830,178 | |||
Basic weighted average number of shares | 103,189 | 107,227 | 104,813 | 108,424 | |||
Adjusted earnings per common share - Basic | $ 2.69 | $ 2.08 | $ 8.89 | $ 7.66 | |||
Diluted weighted average number of shares | 105,218 | 108,969 | 106,846 | 110,145 | |||
Adjusted earnings per common share - Diluted | $ 2.64 | $ 2.05 | $ 8.72 | $ 7.54 | |||
Adjusted Income Before Income Taxes and Related Margin | |||||||
Three Months Ended | Twelve Months Ended | ||||||
(Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||
Income before income taxes | 307,330 | 225,254 | 1,156,118 | 1,017,838 | |||
Legal reserves or settlements | 17,392 | 64,665 | 23,682 | 64,665 | |||
Real estate impairment charges | 20,530 | — | 29,637 | 11,791 | |||
Pre-acquisition abandonment charges | 6,545 | 1,176 | 9,453 | 4,235 | |||
Loss on extinguishment of debt, net | — | 26 | — | 295 | |||
Adjusted income before income taxes | $ 351,797 | $ 291,121 | $ 1,218,890 | $ 1,098,824 | |||
Total revenue | $ 8,168,136 | $ 7,417,831 | |||||
Income before income taxes margin | 13.0 % | 11.2 % | 14.2 % | 13.7 % | |||
Adjusted income before income taxes margin | 14.9 % | 14.4 % | 14.9 % | 14.8 % | |||
Adjusted Home Closings Gross Margin | |||||||
Three Months Ended | Twelve Months Ended | ||||||
(Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||
Home closings revenue | $ 2,169,703 | $ 1,937,632 | $ 7,755,219 | $ 7,158,857 | |||
Cost of home closings | 1,632,003 | 1,470,652 | 5,863,743 | 5,451,401 | |||
Home closings gross margin | $ 537,700 | $ 466,980 | $ 1,891,476 | $ 1,707,456 | |||
Inventory impairment charges | 2,711 | — | 5,036 | 11,791 | |||
Adjusted home closings gross margin | $ 540,411 | $ 466,980 | $ 1,896,512 | $ 1,719,247 | |||
Home closings gross margin as a percentage of home closings revenue | 24.8 % | 24.1 % | 24.4 % | 23.9 % | |||
Adjusted home closings gross margin as a percentage of home closings revenue | 24.9 % | 24.1 % | 24.5 % | 24.0 % | |||
EBITDA and Adjusted EBITDA Reconciliation
| |||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
(Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||
Net income before allocation to non-controlling interests | $ 244,023 | $ 173,162 | $ 886,570 | $ 769,741 | |||
Interest expense/(income), net | 5,893 | (564) | 13,316 | (12,577) | |||
Amortization of capitalized interest | 32,207 | 37,491 | 114,199 | 134,870 | |||
Income tax provision | 63,307 | 52,092 | 269,548 | 248,097 | |||
Depreciation and amortization | 2,279 | 2,918 | 11,535 | 8,976 | |||
EBITDA | $ 347,709 | $ 265,099 | $ 1,295,168 | $ 1,149,107 | |||
Legal reserves or settlements | 17,392 | 64,665 | 23,682 | 64,665 | |||
Non-cash compensation expense | 5,445 | 7,589 | 22,461 | 26,095 | |||
Real estate impairment charges | 20,530 | — | 29,637 | 11,791 | |||
Pre-acquisition abandonment charges | 6,545 | 1,176 | 9,453 | 4,235 | |||
Loss on extinguishment of debt, net | — | 26 | — | 295 | |||
Adjusted EBITDA | $ 397,621 | $ 338,555 | $ 1,380,401 | $ 1,256,188 | |||
Total revenue | $ 2,356,489 | $ 2,019,865 | $ 8,168,136 | $ 7,417,831 | |||
Net income before allocation to non-controlling interests as a percentage of total revenue | 10.4 % | 8.6 % | 10.9 % | 10.4 % | |||
EBITDA as a percentage of total revenue | 14.8 % | 13.1 % | 15.9 % | 15.5 % | |||
Adjusted EBITDA as a percentage of total revenue | 16.9 % | 16.8 % | 16.9 % | 16.9 % | |||
Debt to Capitalization Ratios Reconciliation
| |||||
(Dollars in thousands) | As of December 31, 2024 | As of September 30, 2024 | As of December 31, 2023 | ||
Total debt | $ 2,120,483 | $ 2,143,223 | $ 2,017,102 | ||
Plus: unamortized debt issuance cost, net | 6,616 | 7,056 | 8,375 | ||
Less: mortgage warehouse borrowings | (174,460) | (233,331) | (153,464) | ||
Total homebuilding debt | $ 1,952,639 | $ 1,916,948 | $ 1,872,013 | ||
Total equity | 5,878,180 | 5,723,462 | 5,332,286 | ||
Total capitalization | $ 7,830,819 | $ 7,640,410 | $ 7,204,299 | ||
Total homebuilding debt to capitalization ratio | 24.9 % | 25.1 % | 26.0 % | ||
Total homebuilding debt | $ 1,952,639 | $ 1,916,948 | $ 1,872,013 | ||
Less: cash and cash equivalents | (487,151) | (256,447) | (798,568) | ||
Net homebuilding debt | $ 1,465,488 | $ 1,660,501 | $ 1,073,445 | ||
Total equity | 5,878,180 | 5,723,462 | 5,332,286 | ||
Total capitalization | $ 7,343,668 | $ 7,383,963 | $ 6,405,731 | ||
Net homebuilding debt to capitalization ratio | 20.0 % | 22.5 % | 16.8 % | ||
CONTACT:
Mackenzie Aron, VP Investor Relations
(407) 906-6262
investor@taylormorrison.com
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SOURCE Taylor Morrison
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