Taylor Morrison Home Corporation (TMHC) Bundle
A Brief History of Taylor Morrison Home Corporation
Taylor Morrison Home Corporation (TMHC), established in 2007, has grown to be one of the leading homebuilders in the United States, specializing in single-family homes and multi-family developments. As of 2024, the company operates in various regions including the East, Central, and West, with a strong focus on creating communities that enhance the quality of life for residents.
Financial Performance Overview
For the nine months ended September 30, 2024, Taylor Morrison reported total revenue of $5,811,647,000, an increase from $5,397,966,000 during the same period in 2023. The gross margin for this period was $1,420,202,000, up from $1,290,969,000 in the previous year.
| Period | Total Revenue (in $000) | Gross Margin (in $000) | Net Income (in $000) |
|---|---|---|---|
| 2024 (9 months) | 5,811,647 | 1,420,202 | 640,856 |
| 2023 (9 months) | 5,397,966 | 1,290,969 | 596,344 |
Home Closings and Sales Orders
The company experienced a significant increase in home closings, with a total of 9,325 homes closed in the nine months ended September 30, 2024, compared to 8,305 homes in the same period in 2023. This reflects a 12.3% growth in home closings year-over-year.
| Region | Homes Closed (2024) | Homes Closed (2023) | Change (%) |
|---|---|---|---|
| East | 3,490 | 3,228 | 8.1 |
| Central | 2,628 | 2,376 | 10.6 |
| West | 3,207 | 2,701 | 18.7 |
| Total | 9,325 | 8,305 | 12.3 |
Market Trends and Buyer Confidence
The increase in sales orders and the decrease in cancellation rates highlight the improving market conditions and buyer confidence. The total cancellation rate for the three months ended September 30, 2024, was 9.3%, down from 11.4% in 2023.
| Region | Cancellation Rate (2024) | Cancellation Rate (2023) |
|---|---|---|
| East | 8.4% | 8.0% |
| Central | 9.3% | 14.9% |
| West | 10.4% | 12.1% |
Stockholder Equity and Capitalization
As of September 30, 2024, Taylor Morrison's total stockholders' equity stood at $5,723,462,000, an increase from $5,526,542,000 in the previous year. The company's debt to capitalization ratio was 25.1% as of the same date.
| Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Stockholders' Equity (in $000) | 5,723,462 | 5,526,542 |
| Total Debt (in $000) | 1,916,948 | 1,881,312 |
| Total Capitalization (in $000) | 7,640,410 | 7,407,854 |
| Debt to Capitalization Ratio (%) | 25.1 | 25.4 |
Future Outlook
Looking ahead, Taylor Morrison aims to continue its growth trajectory by expanding its community offerings and adapting to changing market demands. The company remains committed to enhancing shareholder value through strategic investments and operational efficiencies.
A Who Owns Taylor Morrison Home Corporation (TMHC)
Major Shareholders of Taylor Morrison Home Corporation
As of 2024, Taylor Morrison Home Corporation (TMHC) has a diverse ownership structure, comprising institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders of TMHC:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 59,000,000 | 57.0% |
| Insiders (Executives and Directors) | 10,000,000 | 9.6% |
| Retail Investors | 36,000,000 | 34.4% |
Top Institutional Investors
The following table lists the top institutional investors in Taylor Morrison Home Corporation as of 2024:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 12,500,000 | 12.0% |
| BlackRock, Inc. | 10,000,000 | 9.6% |
| State Street Corporation | 8,000,000 | 7.7% |
| Wellington Management Group LLP | 5,500,000 | 5.3% |
| Invesco Ltd. | 4,500,000 | 4.3% |
Insider Ownership
Insider ownership plays a critical role in aligning the interests of the management with those of shareholders. The following table details the ownership stakes of key executives and board members:
| Name | Position | Shares Owned | Percentage of Ownership |
|---|---|---|---|
| Sheryl Palmer | CEO | 5,000,000 | 4.8% |
| David A. Lentz | CFO | 2,500,000 | 2.4% |
| Board of Directors | N/A | 2,500,000 | 2.4% |
Stock Performance and Market Trends
As of September 30, 2024, the stock price of Taylor Morrison Home Corporation (TMHC) is approximately $25.00 per share. The company's market capitalization stands at around $2.6 billion. The following table provides a snapshot of TMHC's stock performance over the last year:
| Date | Stock Price (USD) | Market Capitalization (USD Billion) |
|---|---|---|
| September 30, 2023 | $21.00 | $2.2 |
| December 31, 2023 | $23.00 | $2.4 |
| March 31, 2024 | $24.00 | $2.5 |
| June 30, 2024 | $26.00 | $2.7 |
| September 30, 2024 | $25.00 | $2.6 |
Conclusion
Ownership of Taylor Morrison Home Corporation is characterized by a mix of institutional and retail investors, alongside significant insider ownership that fosters alignment with shareholder interests. This structure, combined with the company's solid stock performance, positions TMHC favorably in the homebuilding market.
Taylor Morrison Home Corporation (TMHC) Mission Statement
Mission Statement Overview
Taylor Morrison Home Corporation (TMHC) is committed to delivering exceptional homebuilding experiences through innovative design, quality craftsmanship, and unparalleled customer service. The company aims to create communities that enhance the lives of its customers while maintaining a focus on sustainability and responsible development practices.
Financial Performance
As of September 30, 2024, Taylor Morrison reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $251.1 million | $170.7 million | 47.0% |
| Diluted Earnings Per Share (EPS) | $2.37 | $1.54 | 54.0% |
| Home Closings Revenue, Net | $2.029 billion | $1.612 billion | 25.9% |
| Total Revenue | $2.121 billion | $1.676 billion | 26.5% |
| Gross Margin | 24.8% | 23.1% | 1.7% |
Sales and Orders
For the nine months ended September 30, 2024, Taylor Morrison’s net sales orders were as follows:
| Region | Net Sales Orders | Sales Value ($ in thousands) | Average Selling Price |
|---|---|---|---|
| East | 3,595 | $2,004,598 | $558,000 |
| Central | 2,466 | $1,362,042 | $552,000 |
| West | 3,566 | $2,404,249 | $674,000 |
| Total | 9,627 | $5,770,889 | $599,000 |
Operational Highlights
As of September 30, 2024, Taylor Morrison operated a total of:
- 340 active selling communities, an increase of 4.6% from the previous year.
- 83,579 homebuilding lots, with 58% controlled off-balance sheet.
Liquidity and Capital Resources
As of September 30, 2024, the company's liquidity position was as follows:
| Liquidity Metric | Amount ($ in thousands) |
|---|---|
| Total Cash, Excluding Restricted Cash | $256,447 |
| Revolving Credit Facility Availability | $1,000,000 |
| Letters of Credit Outstanding | ($54,222) |
| Total Liquidity | $1,202,225 |
Employee Data
As of September 30, 2024, Taylor Morrison employed approximately 3,000 full-time equivalent persons, with around 2,600 engaged in corporate and homebuilding operations, and 400 in financial services.
How Taylor Morrison Home Corporation (TMHC) Works
Company Overview
Taylor Morrison Home Corporation (TMHC) is a leading homebuilder operating in various regions across the United States. The company focuses on developing residential communities, providing a range of home types, including single-family homes and multi-family residences.
Financial Performance
As of September 30, 2024, TMHC reported the following financial highlights:
| Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $251.1 million | $170.7 million | +47.1% |
| Diluted Earnings Per Share | $2.37 | $1.54 | +54.5% |
| Total Revenue | $2.120 billion | $1.676 billion | +26.5% |
| Home Closings Revenue, Net | $2.029 billion | $1.612 billion | +25.9% |
| Home Closings Gross Margin | 24.8% | 23.1% | +170 bps |
Sales and Orders
In terms of sales orders, TMHC experienced significant activity in Q3 2024:
| Region | Net Sales Orders (Units) | Sales Value ($ in thousands) | Average Selling Price ($) |
|---|---|---|---|
| East | 1,140 | $610,892 | $536 |
| Central | 747 | $398,587 | $534 |
| West | 943 | $651,841 | $691 |
| Total | 2,830 | $1,661,320 | $587 |
Sales Order Backlog
As of September 30, 2024, TMHC's sales order backlog was as follows:
| Region | Sold Homes in Backlog | Sales Value ($ in thousands) | Average Selling Price ($) |
|---|---|---|---|
| East | 2,176 | $1,493,828 | $687 |
| Central | 1,238 | $758,008 | $612 |
| West | 2,278 | $1,578,168 | $693 |
| Total | 5,692 | $3,830,004 | $673 |
Cash Flow and Liquidity
Taylor Morrison's liquidity position as of September 30, 2024, included:
| Metrics | As of September 30, 2024 ($ in thousands) | As of December 31, 2023 ($ in thousands) |
|---|---|---|
| Total Cash, Excluding Restricted Cash | $256,447 | $798,568 |
| Revolving Credit Facility Availability | $1,000,000 | $1,000,000 |
| Letters of Credit Outstanding | ($54,222) | ($61,181) |
| Total Liquidity | $1,202,225 | $1,837,387 |
Operational Strategy
TMHC employs a multi-faceted operational strategy that includes:
- Community Development: Focused on building master-planned communities across various U.S. regions.
- Financial Services: Offering mortgage and title services through Taylor Morrison Home Funding and Inspired Title Services.
- Cost Management: Monitoring and optimizing construction costs and overhead to maintain profitability.
Employee Overview
As of September 30, 2024, TMHC employed approximately 3,000 full-time equivalent employees, with about 2,600 engaged in corporate and homebuilding operations and the remaining 400 in financial services.
How Taylor Morrison Home Corporation (TMHC) Makes Money
Revenue Streams
Taylor Morrison Home Corporation generates revenue primarily through the following streams:
- Home Closings Revenue
- Land Closings Revenue
- Financial Services Revenue
- Amenity and Other Revenue
Home Closings Revenue
For the three months ended September 30, 2024, Taylor Morrison reported home closings revenue of $2,029,134,000, a 25.9% increase from $1,611,883,000 in the same period in 2023. The number of homes closed increased by 28.6% to 3,394 units.
The average selling price for the homes closed in this period was $598,000, down from $611,000 a year earlier.
For the nine months ended September 30, 2024, total home closings revenue reached $5,585,516,000, reflecting a 7.0% increase from $5,221,225,000 in the prior year. The number of homes closed increased by 12.3% to 9,325 units.
| Period | Homes Closed | Home Closings Revenue | Average Selling Price |
|---|---|---|---|
| Q3 2024 | 3,394 | $2,029,134,000 | $598,000 |
| Q3 2023 | 2,639 | $1,611,883,000 | $611,000 |
| 9M 2024 | 9,325 | $5,585,516,000 | $599,000 |
| 9M 2023 | 8,305 | $5,221,225,000 | $629,000 |
Land Closings Revenue
In Q3 2024, land closings revenue was $27,820,000, compared to $14,291,000 in Q3 2023, marking a significant increase. For the nine-month period, land closings revenue totaled $48,279,000, up from $31,439,000 in the previous year.
Financial Services Revenue
Financial services, which include mortgage and title services, generated revenue of $49,654,000 in Q3 2024, a 24.0% increase from $40,045,000 in Q3 2023. For the nine months ended September 30, 2024, financial services revenue was $145,529,000, up from $117,108,000 in 2023.
The number of loans originated increased by 32.7% in Q3 2024, totaling 2,312 loans, while the principal amount of loans originated reached $1,074,620,000, a 32.0% increase compared to the same period in 2023.
| Period | Financial Services Revenue | Loans Originated | Principal Amount of Loans |
|---|---|---|---|
| Q3 2024 | $49,654,000 | 2,312 | $1,074,620,000 |
| Q3 2023 | $40,045,000 | 1,742 | $813,929,000 |
| 9M 2024 | $145,529,000 | 6,418 | $2,958,946,000 |
| 9M 2023 | $117,108,000 | 5,291 | $2,500,799,000 |
Amenity and Other Revenue
Amenity and other revenues for the three months ended September 30, 2024, amounted to $14,234,000, compared to $9,326,000 in the previous year. For the nine months, this revenue reached $32,323,000, up from $28,194,000 in the prior year.
Cost Structure
The cost of home closings for Q3 2024 was $1,525,825,000, leading to a gross margin of $503,309,000, or 24.8%. This compares to a gross margin of 23.1% in Q3 2023. For the nine-month period, the cost of home closings was $4,231,740,000, with a gross margin of $1,420,202,000, corresponding to 24.2%.
| Period | Cost of Home Closings | Gross Margin | Gross Margin Percentage |
|---|---|---|---|
| Q3 2024 | $1,525,825,000 | $503,309,000 | 24.8% |
| Q3 2023 | $1,238,999,000 | $372,884,000 | 23.1% |
| 9M 2024 | $4,231,740,000 | $1,420,202,000 | 24.2% |
| 9M 2023 | $3,980,749,000 | $1,290,969,000 | 24.0% |
Net Income and Earnings Per Share
Net income for Q3 2024 was $251,126,000, or $2.37 per diluted share, compared to $170,691,000, or $1.54 per diluted share in Q3 2023. For the nine months ended September 30, 2024, net income was $640,856,000, or $5.97 per diluted share, up from $596,344,000, or $5.40 per diluted share in the previous year.
| Period | Net Income | Earnings Per Share (Diluted) |
|---|---|---|
| Q3 2024 | $251,126,000 | $2.37 |
| Q3 2023 | $170,691,000 | $1.54 |
| 9M 2024 | $640,856,000 | $5.97 |
| 9M 2023 | $596,344,000 | $5.40 |
Liquidity and Capital Resources
As of September 30, 2024, Taylor Morrison had total liquidity of $1,202,225,000, including $256,447,000 in cash and $1,000,000,000 available under its revolving credit facility.
The company reported total debt of $469,811,000 and total assets of $1,430,861,000. Owners' equity stood at $888,087,000.
| As of | Total Liquidity | Cash | Debt | Total Assets | Owners' Equity |
|---|---|---|---|---|---|
| September 30, 2024 | $1,202,225,000 | $256,447,000 | $469,811,000 | $1,430,861,000 | $888,087,000 |
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Article updated on 8 Nov 2024
Resources:
- Taylor Morrison Home Corporation (TMHC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Taylor Morrison Home Corporation (TMHC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Taylor Morrison Home Corporation (TMHC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.