Q3 2024 Taylor Morrison Home Corp Earnings Call Transcript
Key Points
- Taylor Morrison Home Corp (TMHC) delivered 3,394 homes at an average price of $598,000, generating over $2 billion in revenue with a gross margin of 24.8%.
- The company achieved over 50% year-over-year growth in earnings per diluted share to $2.37 and a 15% increase in book value per share to approximately $54.
- Net orders increased 9% year-over-year, driven by a monthly absorption pace of 2.8 per community.
- Taylor Morrison Home Corp (TMHC) maintained a strong financial position with a net homebuilding debt to capitalization ratio of 22.5% and liquidity of approximately $1.2 billion.
- The company has a diversified consumer and geographic strategy, which has helped maintain strong gross margins despite interest rate volatility.
- Hurricane-related disruptions caused nearly two weeks of operational delays, impacting a sizable portion of the portfolio in Florida, the Carolinas, and Georgia.
- The availability of homeowners insurance in coastal markets is shrinking, posing a potential risk to future sales.
- The West Coast market showed mixed results, with some areas experiencing increased competition and inventory challenges.
- Inventory turnover has decreased slightly, with inventory dollars up almost 20% year-over-year, indicating potential inefficiencies.
- The company faces ongoing challenges with affordability issues for first-time buyers, exacerbated by high interest rates and general inflation.
Good morning, and welcome to the Taylor Morrison third-quarter 2024 earnings conference call (Operator Instructions) As a reminder, this conference call is being recorded.
I would now like to introduce to you Mackenzie Aron, Vice President of Investor Relations. Mackenzie?
Thank you, and good morning, everyone. 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
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