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Taylor Morrison
🇺🇸 NYSE:TMHC
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•
Sep 30, 2021

Taylor Morrison Q3 2021 Earnings Report

Taylor Morrison reported strong Q3 2021 results, with a significant increase in home closings gross margin and backlog.

Key Takeaways

Taylor Morrison reported a strong third quarter, exceeding expectations in key operating metrics. The company successfully navigated supply-side challenges, closing 3,327 homes with a home closings gross margin of 21.2 percent. Net income increased to $168 million, or $1.34 per diluted share.

Home closings gross margin increased 400 basis points to 21.2 percent.

Backlog increased 32 percent to 10,273 sold homes with a sales value of $6.1 billion, up 63 percent.

Controlled lots as a percentage of total lot supply increased approximately 700 basis points to 36 percent.

Homebuilding lot supply increased 15 percent to approximately 78,000 total lots owned and controlled.

Total Revenue
$1.86B
Previous year: $1.7B
+9.4%
EPS
$1.34
Previous year: $1.01
+32.7%
Gross Profit
$392M
Previous year: $310M
+26.7%
Cash and Equivalents
$373M
Previous year: $548M
-31.8%
Free Cash Flow
-$1.13M
Previous year: $467M
-100.2%
Total Assets
$8.4B
Previous year: $7.83B
+7.3%

Taylor Morrison

Taylor Morrison

Taylor Morrison Revenue by Segment

Forward Guidance

Taylor Morrison expects positive momentum to continue, driven by synergy realization, operational enhancements and backlog strength. However, due to industry-wide material and labor bottlenecks, the company is adjusting its full-year home closings guidance to around 14,000 homes.

Positive Outlook

  • Average active community count is expected to be in line with the third quarter
  • GAAP home closings gross margin is expected to be approximately 21 percent
  • Effective tax rate is expected to be approximately 23.0 percent
  • Diluted share count is expected to be approximately 125 million
  • Net debt-to-capital ratio to decline to the low-30 percent range by the end of 2021 followed by further deleveraging in 2022.

Challenges Ahead

  • Home closings are expected to be approximately 4,600
  • Unprecedented industry-wide material and labor bottlenecks that have intensified in recent months and are unlikely to abate in the foreseeable future
  • Adjusting full-year home closings guidance to around 14,000 homes to reflect timing delays that have pushed some closings into early 2022
  • Effective tax rate is expected to be approximately 23.0 percent
  • Diluted share count is expected to be approximately 128 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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