EX-99.1 2 d853831dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

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CONTACT:

Mackenzie Aron, VP Investor Relations

(480) 734-2060

investor@taylormorrison.com

Taylor Morrison Reports Third Quarter 2024 Results

SCOTTSDALE, Ariz., Oct. 23, 2024—Taylor Morrison Home Corporation (NYSE: TMHC), a leading national land developer and homebuilder, announced results for the third quarter ended September 30, 2024. Reported third quarter net income was $251 million, or $2.37 per diluted share, as compared to $171 million, or $1.54 per diluted share, in the prior-year quarter.

Third quarter 2024 highlights included the following, as compared to the third quarter of 2023:

 

   

Diluted EPS increased 54% to $2.37

 

   

Net sales orders increased 9% to 2,830

 

   

Home closings revenue of $2.0 billion, driven by 3,394 closings at an average price of $598,000

 

   

Home closings gross margin of 24.8%, up from 23.1% a year ago

 

   

83,579 homebuilding lots owned and controlled, of which a record 58% was controlled off balance sheet

 

   

Share repurchases totaled $61 million during the quarter and $258 million year to date

 

   

Total liquidity of $1.2 billion; no senior debt maturities until 2027

“In the third quarter, our team delivered better-than-expected results, which clearly demonstrated the benefits of our diversified consumer and geographic strategy, as well as our team’s impressive execution in the face of continued interest rate volatility, economic uncertainty and hurricane-related disruptions,” said Sheryl Palmer, Taylor Morrison CEO and Chairman. “Led by strong top-line growth and improved margins, our results generated over-50% year-over-year growth in our earnings per diluted share to $2.37 and a 15% year-over-year increase in our book value per share to approximately $54.”

Palmer continued, “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. On the sales front, our net orders increased 9% year over year, driven by a monthly absorption pace of 2.8 per community. As I shared on our second quarter call, we had begun to see traffic recover in June and July, which translated into improving order volume throughout the third quarter, with sales activity ending on a high note in September. While still early in October, demand has generally been healthy and consistent with seasonal trends, even with the impact of yet another hurricane in Florida.”

“Since expanding our company’s scale and refining our operational capabilities over the last many years, we believe that our ability to generate accretive growth and attractive returns has been permanently strengthened. This is reflected in the long-term targets that we introduced earlier this year, each of which are meaningfully stronger than our historic norms. These targets include: 10% annual home closings growth, an annualized low-three absorption pace, low-to-mid 20% home closings gross margins, and mid-to-high teens returns on equity.”


“This year, with just over two months to go, we expect to meet or exceed each of these metrics with anticipated double-digit closings growth to approximately 12,725 homes at a home closings gross margin of around 24.3% as 2024 has shaped up to be another milestone year for our company. As we head into 2025, we are confident that our long-standing emphasis on capital-efficient growth will yield another year of strong performance, supported by tailwinds driving the need for new construction and our favorable positioning as a diversified homebuilder,” said Palmer.

Business Highlights (All comparisons are of the current quarter to the prior-year quarter, unless indicated.)

Homebuilding

 

   

Home closings revenue increased 26% to $2.0 billion, driven by a 29% increase in closings to 3,394 homes, which was partially offset by a 2% decrease in the average price to $598,000.

 

   

The home closings gross margin was 24.8%, which was up 170 basis points from 23.1% in the prior-year quarter.

 

   

Net sales orders increased 9% to 2,830, driven by a 5% increase in ending community count to 340 outlets and a 4% increase in the monthly absorption pace to 2.8 per community.

 

   

SG&A as a percentage of home closings revenue decreased to 9.8% from 10.4% a year ago.

 

   

Cancellations equaled 9.3% of gross orders, down from 11.4% a year ago.

 

   

Backlog at quarter end was 5,692 homes with a sales value of $3.8 billion. Backlog customer deposits averaged approximately $54,000 per home.

Land Portfolio

 

   

Homebuilding land acquisition and development spend totaled $593 million, up from $552 million a year ago. Development-related spend accounted for 46% of the total versus 42% a year ago.

 

   

Homebuilding lot supply was 83,579 homesites, of which a record 58% was controlled off balance sheet.

 

   

Based on trailing twelve-month home closings, total homebuilding lots represented 6.6 years of supply, of which 2.7 years was owned.

Financial Services

 

   

The mortgage capture rate was 88%, unchanged from a year ago.

 

   

Borrowers had an average credit score of 754 and average debt-to-income ratio of 40%.

Balance Sheet

 

   

At quarter end, total liquidity was approximately $1.2 billion, including $946 million of total capacity on the Company’s revolving credit facility, which was undrawn outside of normal letters of credit.

 

   

The gross homebuilding debt to capital ratio was 25.1%. Including $256 million of unrestricted cash on hand, the net homebuilding debt-to-capital ratio was 22.5%.

 

   

The Company repurchased 1.0 million shares for $61 million, bringing the year-to-date total to 4.2 million shares for $258 million. At quarter end, the remaining share repurchase authorization was $237 million. Subsequent to quarter end, our Board of Directors authorized an expanded share repurchase authorization of up to $1 billion, effective through December 31, 2026.


Business Outlook

Fourth Quarter 2024

 

   

Home closings are expected to be approximately 3,400

 

   

Average closing price is expected to be approximately $610,000

 

   

Home closings gross margin is expected to be around 24.5%

 

   

Ending active community count is expected to be between 330 to 340

 

   

Effective tax rate is expected to be approximately 25%

 

   

Diluted share count is expected to be approximately 106 million

Full Year 2024

 

   

Home closings are now expected to be approximately 12,725

 

   

Average closing price is now expected to be approximately $600,000

 

   

Home closings gross margin is now expected to be approximately 24.3%

 

   

Ending active community count is expected to be between 330 to 340

 

   

SG&A as a percentage of home closings revenue is expected to be in the high-9% range

 

   

Effective tax rate is now expected to be between 24.5% to 25.0%

 

   

Diluted share count is expected to be approximately 107 million

 

   

Land and development spend is now expected to be around $2.5 billion

 

   

Share repurchases are expected to total approximately $300 million

Quarterly Financial Comparison

 

(Dollars in thousands)    Q3 2024     Q3 2023     Q3 2024 vs. Q3 2023  

Total Revenue

   $ 2,120,842     $ 1,675,545       26.6

Home Closings Revenue

   $ 2,029,134     $ 1,611,883       25.9

Home Closings Gross Margin

   $ 503,309     $ 372,884       35.0
     24.8     23.1     170 bps increase  

SG&A

   $ 199,341     $ 167,791       18.8

% of Home Closings Revenue

     9.8     10.4     60 bps decrease  

Earnings Conference Call Webcast

A public webcast to discuss the Company’s earnings will be held later today at 8:30 a.m. ET. Call participants are asked to register for the event here to receive a unique passcode and dial-in information. The call 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 Events & Presentations tab.


About Taylor Morrison

Headquartered in Scottsdale, Arizona, Taylor Morrison is one of the nation’s leading homebuilders and developers. We serve a wide array of consumers from coast to coast, including first-time, move-up, luxury and resort lifestyle homebuyers and renters under our family of brands—including Taylor Morrison, Esplanade and Yardly. From 2016-2024, Taylor Morrison has been recognized as America’s Most Trusted® Builder by Lifestory Research. Our long-standing commitment to sustainable operations is highlighted in our annual Sustainability and Belonging Report.

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; 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; 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 Eastern Europe and the Middle East and other geopolitical events; the scale and scope of current and future public health events, including pandemics and epidemics; any failure of lawmakers to agree on a budget or appropriation legislation to fund the federal government’s operations (also known as a government shutdown), and financial markets’ and businesses’ reactions to any such failure; risks related to our substantial debt and the agreements governing such debt, including restrictive covenants contained in such agreements; our ability to access the capital markets; the risks associated with maintaining effective internal controls over financial reporting; provisions in our charter and bylaws that may delay or prevent an acquisition by a third party; and our ability to effectively manage our expanded operations.

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
September 30,
    Nine Months Ended
September 30,
 
     2024     2023     2024     2023  

Home closings revenue, net

   $ 2,029,134     $ 1,611,883     $ 5,585,516     $ 5,221,225  

Land closings revenue

     27,820       14,291       48,279       31,439  

Financial services revenue

     49,654       40,045       145,529       117,108  

Amenity and other revenue

     14,234       9,326       32,323       28,194  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     2,120,842       1,675,545       5,811,647       5,397,966  

Cost of home closings

     1,525,825       1,238,999       4,231,740       3,980,749  

Cost of land closings

     27,010       13,572       50,915       30,620  

Financial services expenses

     27,304       23,128       80,553       70,618  

Amenity and other expenses

     9,634       8,128       28,237       25,010  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenue

     1,589,773       1,283,827       4,391,445       4,106,997  

Gross margin

     531,069       391,718       1,420,202       1,290,969  

Sales, commissions and other marketing costs

     117,714       98,797       334,270       304,591  

General and administrative expenses

     81,627       68,994       231,970       205,904  

Net income from unconsolidated entities

     (707     (1,934     (6,086     (7,049

Interest expense/(income), net

     3,379       (5,782     7,423       (12,013

Other (income)/expense, net

     (3,635     2,968       3,837       6,683  

Loss on extinguishment of debt, net

     —        269       —        269  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     332,691       228,406       848,788       792,584  

Income tax provision

     81,219       57,960       206,241       196,005  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income before allocation to non-controlling interests

     251,472       170,446       642,547       596,579  

Net (income)/loss attributable to non-controlling interests

     (346     245       (1,691     (235
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 251,126     $ 170,691     $ 640,856     $ 596,344  
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per common share:

        

Basic

   $ 2.41     $ 1.57     $ 6.08     $ 5.48  

Diluted

   $ 2.37     $ 1.54     $ 5.97     $ 5.40  

Weighted average number of shares of common stock:

        

Basic

     104,132       108,837       105,359       108,827  

Diluted

     106,089       110,622       107,361       110,536  


Taylor Morrison Home Corporation

Condensed Consolidated Balance Sheets

(In thousands, unaudited)

 

     September 30,
2024
     December 31,
2023
 

Assets

     

Cash and cash equivalents

   $ 256,447      $ 798,568  

Restricted cash

     846        8,531  
  

 

 

    

 

 

 

Total cash

     257,293        807,099  

Owned inventory

     6,265,280        5,473,828  

Consolidated real estate not owned

     175,245        71,618  
  

 

 

    

 

 

 

Total real estate inventory

     6,440,525        5,545,446  

Land deposits

     273,967        203,217  

Mortgage loans held for sale

     265,356        193,344  

Lease right of use assets

     69,083        75,203  

Prepaid expenses and other assets, net

     336,051        290,925  

Other receivables, net

     207,595        184,518  

Investments in unconsolidated entities

     397,061        346,192  

Deferred tax assets, net

     67,825        67,825  

Property and equipment, net

     322,483        295,121  

Goodwill

     663,197        663,197  
  

 

 

    

 

 

 

Total assets

   $ 9,300,436      $ 8,672,087  
  

 

 

    

 

 

 

Liabilities

     

Accounts payable

   $ 269,300      $ 263,481  

Accrued expenses and other liabilities

     577,501        549,074  

Lease liabilities

     79,426        84,999  

Income taxes payable

     5,528        —   

Customer deposits

     307,510        326,087  

Estimated development liabilities

     19,241        27,440  

Senior notes, net

     1,470,014        1,468,695  

Loans payable and other borrowings

     439,878        394,943  

Revolving credit facility borrowings

     —         —   

Mortgage warehouse borrowings

     233,331        153,464  

Liabilities attributable to consolidated real estate not owned

     175,245        71,618  
  

 

 

    

 

 

 

Total liabilities

   $ 3,576,974      $ 3,339,801  

Stockholders’ equity

     

Total stockholders’ equity

     5,723,462        5,332,286  
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 9,300,436      $ 8,672,087  
  

 

 

    

 

 

 


LOGO

Homes Closed and Home Closings Revenue, Net:

 

     Three Months Ended September 30,  
     Homes Closed     Home Closings Revenue, Net     Average Selling Price  
(Dollars in thousands)    2024      2023      Change     2024      2023      Change     2024      2023      Change  

East

     1,320        996        32.5   $ 758,179      $ 572,971        32.3   $ 574      $ 575        (0.2 %) 

Central

     932        709        31.5     515,643        423,396        21.8     553        597        (7.4 )% 

West

     1,142        934        22.3     755,312        615,516        22.7     661        659        0.3
  

 

 

    

 

 

      

 

 

    

 

 

            

Total

     3,394        2,639        28.6   $ 2,029,134      $ 1,611,883        25.9   $ 598      $ 611        (2.1 )% 
  

 

 

    

 

 

      

 

 

    

 

 

            
     Nine Months Ended September 30,  
     Homes Closed     Home Closings Revenue, Net     Average Selling Price  
(Dollars in thousands)    2024      2023      Change     2024      2023      Change     2024      2023      Change  

East

     3,490        3,228        8.1   $ 1,991,038      $ 1,906,862        4.4   $ 570      $ 591        (3.6 %) 

Central

     2,628        2,376        10.6     1,468,197        1,499,420        (2.1 )%      559        631        (11.4 %) 

West

     3,207        2,701        18.7     2,126,281        1,814,943        17.2     663        672        (1.3 )% 
  

 

 

    

 

 

      

 

 

    

 

 

            

Total

     9,325        8,305        12.3   $ 5,585,516      $ 5,221,225        7.0   $ 599      $ 629        (4.8 )% 
  

 

 

    

 

 

      

 

 

    

 

 

            

Net Sales Orders:

 

     Three Months Ended September 30,  
     Net Sales Orders     Sales Value     Average Selling Price  
(Dollars in thousands)    2024      2023      Change     2024      2023      Change     2024      2023      Change  

East

     1,140        940        21.3   $ 610,892      $ 559,524        9.2   $ 536      $ 595        (9.9 %) 

Central

     747        641        16.5     398,587        374,224        6.5     534        584        (8.6 )% 

West

     943        1,011        (6.7 %)      651,841        680,666        (4.2 %)      691        673        2.7
  

 

 

    

 

 

      

 

 

    

 

 

            

Total

     2,830        2,592        9.2   $ 1,661,320      $ 1,614,414        2.9   $ 587      $ 623        (5.8 %) 
  

 

 

    

 

 

      

 

 

    

 

 

            
     Nine Months Ended September 30,  
     Net Sales Orders     Sales Value     Average Selling Price  
(Dollars in thousands)    2024      2023      Change     2024      2023      Change     2024      2023      Change  

East

     3,595        3,066        17.3   $ 2,004,598      $ 1,786,988        12.2   $ 558      $ 583        (4.3 )% 

Central

     2,466        2,123        16.2     1,362,042        1,248,196        9.1     552        588        (6.1 )% 

West

     3,566        3,280        8.7     2,404,249        2,219,056        8.3     674        677        (0.4 )% 
  

 

 

    

 

 

      

 

 

    

 

 

            

Total

     9,627        8,469        13.7   $ 5,770,889      $ 5,254,240        9.8   $ 599      $ 620        (3.4 )% 
  

 

 

    

 

 

      

 

 

    

 

 

            


LOGO

 

Sales Order Backlog:

 

     As of September 30,  
     Sold Homes in Backlog     Sales Value     Average Selling Price  
(Dollars in thousands)    2024      2023      Change     2024      2023      Change     2024      2023      Change  

East

     2,176        2,421        (10.1 )%    $ 1,493,828      $ 1,613,188        (7.4 )%    $ 687      $ 666        3.2

Central

     1,238        1,464        (15.4 )%      758,008        960,269        (21.1 )%      612        656        (6.7 )% 

West

     2,278        2,233        2.0     1,578,168        1,523,545        3.6     693        682        1.6
  

 

 

    

 

 

      

 

 

    

 

 

            

Total

     5,692        6,118        (7.0 )%    $ 3,830,004      $ 4,097,002        (6.5 )%    $ 673      $ 670        0.4
  

 

 

    

 

 

      

 

 

    

 

 

            

Ending Active Selling Communities:

 

     As of      Change  
     September 30, 2024      September 30, 2023         

East

     120        107        12.1

Central

     106        94        12.8

West

     114        124        (8.1 %) 
  

 

 

    

 

 

    

Total

     340        325        4.6
  

 

 

    

 

 

    

Reconciliation of Non-GAAP Financial Measures

In addition to the results reported in accordance with accounting principles generally accepted in the United States (“GAAP”), we provide our investors with supplemental information relating to: (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.

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 or land 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 on 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 or land 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 regions, 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 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.


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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 U.S. GAAP financial measures of our operating performance or liquidity. Although other companies in the homebuilding industry may report similar information, their definitions may differ. We urge investors to understand the methods used by other companies to calculate similarly-titled non-GAAP financial measures before comparing their measures to ours.

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
September 30,
 

(Dollars in thousands, except per share data)

   2024      2023  

Net income

   $ 251,126      $ 170,691  

Inventory impairment charges (1)

     —         11,791  

Loss on extinguishment of debt, net

     —         269  

Tax impact due to above non-GAAP reconciling items

     —         (3,060
  

 

 

    

 

 

 

Adjusted net income

   $ 251,126      $ 179,691  

Basic weighted average number of shares

     104,132        108,837  

Adjusted earnings per common share - Basic

   $ 2.41      $ 1.65  

Diluted weighted average number of shares

     106,089        110,622  

Adjusted earnings per common share - Diluted

   $ 2.37      $ 1.62  

Adjusted Income Before Income Taxes and Related Margin

 

     Three Months Ended
September 30,
 
(Dollars in thousands)    2024     2023  

Income before income taxes

   $ 332,691     $ 228,406  

Inventory impairment charges (1)

     —        11,791  

Loss on extinguishment of debt, net

     —        269  
  

 

 

   

 

 

 

Adjusted income before income taxes

   $ 332,691     $ 240,466  
  

 

 

   

 

 

 

Total revenue

   $ 2,120,842     $ 1,675,545  

Income before income taxes margin

     15.7     13.6

Adjusted income before income taxes margin

     15.7     14.4


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Adjusted Home Closings Gross Margin

 

     Three Months Ended
September 30,
 

(Dollars in thousands)

   2024     2023  

Home closings revenue

   $ 2,029,134     $ 1,611,883  

Cost of home closings

     1,525,825       1,238,999  
  

 

 

   

 

 

 

Home closings gross margin

   $ 503,309     $ 372,884  

Inventory impairment charges (1)

     —        11,791  
  

 

 

   

 

 

 

Adjusted home closings gross margin

   $ 503,309     $ 384,675  
  

 

 

   

 

 

 

Home closings gross margin as a percentage of home closings revenue

     24.8     23.1

Adjusted home closings gross margin as a percentage of home closings revenue

     24.8     23.9

EBITDA and Adjusted EBITDA Reconciliation

 

     Three Months Ended
September 30,
 
(Dollars in thousands)    2024     2023  

Net income before allocation to non-controlling interests

   $ 251,472     $ 170,446  

Interest expense/(income), net

     3,379       (5,782

Amortization of capitalized interest

     30,064       32,377  

Income tax provision

     81,219       57,960  

Depreciation and amortization

     2,668       2,728  
  

 

 

   

 

 

 

EBITDA

   $ 368,802     $ 257,729  

Non-cash compensation expense

     5,461       5,702  

Inventory impairment charges (1)

     —        11,791  

Loss on extinguishment of debt, net

     —        269  
  

 

 

   

 

 

 

Adjusted EBITDA

   $ 374,263     $ 275,491  
  

 

 

   

 

 

 

Total revenue

   $ 2,120,842     $ 1,675,545  

Net income before allocation to non-controlling interests as a percentage of total revenue

     11.9     10.2

EBITDA as a percentage of total revenue

     17.4     15.4

Adjusted EBITDA as a percentage of total revenue

     17.6     16.4

 

(1) 

Included in Cost of home closings on the Condensed consolidated statement of operations


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Debt to Capitalization Ratios Reconciliation

 

(Dollars in thousands)

   As of
September 30,
2024
    As of
June 30,
2024
    As of
September 30,
2023
 

Total debt

   $ 2,143,223     $ 2,150,021     $ 1,992,077  

Plus: unamortized debt issuance cost, net

     7,056       7,496       8,815  

Less: mortgage warehouse borrowings

     (233,331     (276,205     (191,645
  

 

 

   

 

 

   

 

 

 

Total homebuilding debt

   $ 1,916,948     $ 1,881,312     $ 1,809,247  

Total equity

     5,723,462       5,526,542       5,175,110  
  

 

 

   

 

 

   

 

 

 

Total capitalization

   $ 7,640,410     $ 7,407,854     $ 6,984,357  
  

 

 

   

 

 

   

 

 

 

Total homebuilding debt to capitalization ratio

     25.1     25.4     25.9
  

 

 

   

 

 

   

 

 

 

Total homebuilding debt

   $ 1,916,948     $ 1,881,312     $ 1,809,247  

Less: cash and cash equivalents

     (256,447     (246,845     (613,811
  

 

 

   

 

 

   

 

 

 

Net homebuilding debt

   $ 1,660,501     $ 1,634,467     $ 1,195,436  

Total equity

     5,723,462       5,526,542       5,175,110  
  

 

 

   

 

 

   

 

 

 

Total capitalization

   $ 7,383,963     $ 7,161,009     $ 6,370,546  
  

 

 

   

 

 

   

 

 

 

Net homebuilding debt to capitalization ratio

     22.5     22.8     18.8