Q2 2024 Taylor Morrison Home Corp Earnings Call Transcript
Key Points
- Delivered 3,200 homes at an average price of $600,000, exceeding prior guidance.
- Adjusted home closings gross margin of 23.9%, reflecting stability despite higher interest rates.
- Net orders increased 3% year-over-year with a monthly absorption pace of three per community.
- Strong balance sheet with liquidity of approximately $1.3 billion and a net home building debt-to-capitalization ratio of 22.8%.
- High capture rate of 89% for Taylor Morrison Home funding, with an average credit score of 751 and household income of $174,000.
- Moderation in traffic and pre-qualifications during May due to interest rate movements.
- SG&A as a percentage of home closings revenue increased to 10.2% from 9.2% a year ago.
- Spec homes accounted for 58% of total gross orders, reflecting a strategic shift that may impact margins.
- Higher payroll-related and external broker expenses contributed to increased SG&A costs.
- Potential headwinds from lot cost inflation and competitive pressures in the land market.
Good morning and welcome to the Taylor Morrison's second-quarter 2024 earnings conference call. (Operator Instructions)
As a reminder, this conference call is being recorded. I would like now to introduce Mackenzie Aron, Vice President, Investor Relations.
Thank you and good morning. We appreciate you joining us today. Before we begin, let me remind you that this call, including the question-and-answer session, will include forward-looking statements.
These statements are subject to the safe harbor statement for forward-looking information that you can review in our earnings release on the investor relations portion of our website at taylormorrison.com.
These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections.
These risks and uncertainties include, but are not limited to those factors identified in the release and in our filings with the SEC, and we do
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
