Taylor Morrison Home Corp Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Taylor Morrison Home Corp filed its Q1 2024 10-Q report detailing financial performance and balance sheet information.</b>

AI Summary

Taylor Morrison Home Corp (TMHC) filed a Quarterly Report (10-Q) with the SEC on April 30, 2024. Taylor Morrison Home Corp reported financial results for the quarter ended March 31, 2024. The filing is a 10-Q, indicating a quarterly report. The company's principal business is operative building. The filing includes data related to Home Sales, Land Sales, Financial Services, and Amenities. Key financial statement elements such as Common Stock, Additional Paid-In Capital, and Retained Earnings are detailed for various periods.

Why It Matters

For investors and stakeholders tracking Taylor Morrison Home Corp, this filing contains several important signals. This 10-Q provides investors with the latest quarterly financial data, crucial for assessing the company's operational health and strategic direction. Understanding the segment performance (Home Sales, Land Sales, Financial Services) allows for a deeper analysis of revenue drivers and potential growth areas within the housing market.

Risk Assessment

Risk Level: — Taylor Morrison Home Corp shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) for a publicly traded company, which inherently carries medium risk due to the dynamic nature of the real estate market and general economic conditions.

Analyst Insight

Monitor future filings for trends in home sales, land sales, and financial services revenue to gauge the company's response to market conditions.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Quarterly report)
• 2024-04-30 — Filing Date (10-Q filing)
• 1531 — Standard Industrial Classification (Operative Builders)

Key Players & Entities

• Taylor Morrison Home Corp (company) — Filer of the 10-Q report
• 2024-03-31 (date) — End of the reporting period
• 2024-04-30 (date) — Filing date
• 480-840-8100 (phone_number) — Business phone number

FAQ

Industry Context

Taylor Morrison Home Corp operates in the operative builders industry, which is sensitive to interest rates, housing demand, and overall economic conditions.

Regulatory Implications

As a publicly traded company, Taylor Morrison Home Corp is subject to SEC regulations, including the requirement to file quarterly reports (10-Q) to ensure transparency for investors.

What Investors Should Do

1. Analyze the detailed financial statements within the 10-Q for specific revenue figures and cost breakdowns.
2. Compare the reported figures for Q1 2024 against previous quarters and the same quarter in the prior year to identify performance trends.
3. Review any management discussion and analysis (MD&A) sections (if available in the full filing) for insights into the company's outlook and strategies.

Key Dates

• 2024-03-31: Quarter End Date — Marks the end of the reporting period for the 10-Q
• 2024-04-30: Filing Date — Date the 10-Q was officially submitted to the SEC

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC), that gives a comprehensive overview of a company's financial performance. (This filing provides the most recent quarterly financial data for Taylor Morrison Home Corp.)

Operative Builders

Companies primarily engaged in the construction and sale of residential buildings. (This is the industry classification for Taylor Morrison Home Corp, indicating its core business.)

Year-Over-Year Comparison

This is the initial filing data provided for the period ending March 31, 2024. Further analysis would require comparative data from previous filings.

Key Financial Figures

• $0.00001 — ange on which registered Common Stock, $0.00001 par value TMHC New York Stock Exchange

Filing Documents

• tmhc-20240331.htm (10-Q) — 1244KB
• tmhc-20240331xexx311.htm (EX-31.1) — 10KB
• tmhc-20240331xexx312.htm (EX-31.2) — 10KB
• tmhc-20240331xexx321.htm (EX-32.1) — 5KB
• tmhc-20240331xexx322.htm (EX-32.2) — 5KB
• 0001628280-24-019320.txt (&nbsp;) — 6723KB
• tmhc-20240331.xsd (EX-101.SCH) — 45KB
• tmhc-20240331_cal.xml (EX-101.CAL) — 65KB
• tmhc-20240331_def.xml (EX-101.DEF) — 215KB
• tmhc-20240331_lab.xml (EX-101.LAB) — 539KB
• tmhc-20240331_pre.xml (EX-101.PRE) — 391KB
• tmhc-20240331_htm.xml (XML) — 1020KB

Financial Statements of Taylor Morrison Home Corporation (Unaudited)

Financial Statements of Taylor Morrison Home Corporation (Unaudited) 2 Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 3 Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 4 Condensed Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2024 and 2023 5 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 6 Notes to the Unaudited Condensed Consolidated Financial Statements 20 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 30 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31 ITEM 4.

Controls and Procedures

Controls and Procedures Part II OTHER INFORMATION 32 ITEM 1.

Legal Proceedings

Legal Proceedings 32 ITEM 1A.

Risk Factors

Risk Factors 33 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 33 ITEM 3. Defaults Upon Senior Securities 33 ITEM 4. Mine Safety Disclosures 33 ITEM 5. Other Information 35 ITEM 6. Exhibits 36

SIGNATURES

SIGNATURES TAYLOR MORRISON HOME CORPORATION 10-Q 1 Table of Contents

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS TAYLOR MORRISON HOME CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, unaudited) March 31, 2024 December 31, 2023 Assets Cash and cash equivalents $ 554,287 $ 798,568 Restricted cash 3,105 8,531 Total cash 557,392 807,099 Real estate inventory: Owned inventory 5,841,924 5,473,828 Consolidated real estate not owned 143,429 71,618 Total real estate inventory 5,985,353 5,545,446 Land deposits 199,043 203,217 Mortgage loans held for sale 216,633 193,344 Lease right of use assets 72,900 75,203 Prepaid expenses and other assets, net 287,507 290,925 Other receivables, net 189,771 184,518 Investments in unconsolidated entities 369,982 346,192 Deferred tax assets, net 67,825 67,825 Property and equipment, net 300,740 295,121 Goodwill 663,197 663,197 Total assets $ 8,910,343 $ 8,672,087 Liabilities Accounts payable $ 276,093 $ 263,481 Accrued expenses and other liabilities 459,095 549,074 Lease liabilities 81,138 84,999 Income taxes payable 45,848 — Customer deposits 357,657 326,087 Estimated development liabilities 27,416 27,440 Senior notes, net 1,469,135 1,468,695 Loans payable and other borrowings 441,190 394,943 Revolving credit facility borrowings — — Mortgage warehouse borrowings 183,174 153,464 Liabilities attributable to consolidated real estate not owned 143,429 71,618 Total liabilities $ 3,484,175 $ 3,339,801 COMMITMENTS AND CONTINGENCIES (Note 13) Stockholders' equity Total stockholders' equity 5,426,168 5,332,286 Total liabilities and stockholders' equity $ 8,910,343 $ 8,672,087 See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements TAYLOR MORRISON HOME CORPORATION 10-Q 2 Table of Contents

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS TAYLOR MORRISON HOME CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts, unaudited) Three Months Ended March 31, 2024 2023 Home closings revenue, net $ 1,636,255 $ 1,612,595 Land closings revenue 7,225 4,520 Financial services revenue 46,959 35,149 Amenity and other revenue 9,313 9,593 Total revenue 1,699,752 1,661,857 Cost of home closings 1,243,209 1,227,513 Cost of land closings 5,202 4,345 Financial services expenses 25,143 22,148 Amenity and other expenses 9,353 8,285 Total cost of revenue 1,282,907 1,262,291 Gross margin 416,845 399,566 Sales, commissions and other marketing costs 102,600 92,760 General and administrative expenses 67,564 66,261 Net income from unconsolidated entities ( 2,751 ) ( 1,929 ) Interest income, net ( 43 ) ( 1,111 ) Other expense/(income), net 595 ( 4,834 ) Income before income taxes 248,880 248,419 Income tax provision 57,719 57,191 Net income before allocation to non-controlling interests 191,161 191,228 Net income attributable to non-controlling interests ( 891 ) ( 177 ) Net income $ 190,270 $ 191,051 Earnings per common share: Basic $ 1.79 $ 1.76 Diluted $ 1.75 $ 1.74 Weighted average number of shares of common stock: Basic 106,457 108,429 Diluted 108,564 110,053 See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements TAYLOR MORRISON HOME CORPORATION 10-Q 3 Table of Contents

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS TAYLOR MORRISON HOME CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (In thousands, except share data, unaudited) For the three months ended March 31, 2024 Common Stock Additional Paid-in Capital Treasury Stock Stockholders' Equity Shares Amount Amount Shares Amount Retained Earnings Accumulated Other Comprehensive Income Non- Controlling Interests Total Stockholders' Equity Balance – December 31, 2023 106,917,636 $ 1 $ 3,068,597 54,211,879 $ ( 1,265,097 ) $ 3,510,544 $ 896 $ 17,345 $ 5,332,286 Net income — — — — — 190,270 — 891 191,161 Exercise of stock options and issuance of restricted stock units, net (1) 633,766 — ( 10,856 ) — — — — — ( 10,856 ) Repurchase of common stock ( 1,491,485 ) — — 1,491,485 ( 91,649 ) — — — ( 91,649 ) Stock compensation expense — — 5,483 — — — — — 5,483 Distributions to non-controlling interests of consolidated joint ventures — — — — — — — ( 257 ) ( 257 ) Balance – March 31, 2024 106,059,917 $ 1 $ 3,063,224 55,703,364 $ ( 1,356,746 ) $ 3,700,814 $ 896 $ 17,979 $ 5,426,168 (1) Dollar amount includes $ 4.0 million of stock options exercised netted with the value of shares withheld for taxes on the issuance of restricted stock units. For the three months ended March 31, 2023 Common Stock Additional Paid-in Capital Treasury Stock Stockholders' Equity Shares Amount Amount Shares Amount Retained Earnings Accumulated Other Comprehensive Income Non- Controlling Interests Total Stockholders' Equity Balance – December 31, 2022 107,995,262 $ 1 $ 3,025,489 51,396,923 $ ( 1,137,138 ) $ 2,741,615 $ 359 $ 16,533 4,646,859 Net income — — — — — 191,051 — 177 191,228 Exercise of stock options and issuance of restricted stock units, net (1) 1,148,175 — 4,493 — — — — — 4,493 Repurchase of common stock ( 109,325 ) — — 109,325 ( 3,568 ) — — — ( 3,568 ) Stock compensation expense — — 7,533 — — — — — 7,533 Changes in non-controlling interests of consolidated joint ventures

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS TAYLOR MORRISON HOME CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands, unaudited) Three Months Ended March 31, 2024 2023 Cash Flows from Operating Activities Net income before allocation to non-controlling interests $ 191,161 $ 191,228 Adjustments to reconcile net income to net cash (used in)/provided by operating activities: Net income from unconsolidated entities ( 2,751 ) ( 1,929 ) Stock compensation expense 5,483 7,533 Distributions of earnings from unconsolidated entities 2,897 847 Depreciation and amortization 10,250 7,087 Operating lease expense 5,903 7,144 Debt issuance costs amortization 741 868 Changes in operating assets and liabilities: Real estate inventory and land deposits ( 363,923 ) 51,596 Mortgage loans held for sale, prepaid expenses and other assets ( 35,783 ) 190,202 Customer deposits 31,570 1,993 Accounts payable, accrued expenses and other liabilities ( 22,133 ) ( 112,097 ) Income taxes payable 45,848 2,977 Net cash (used in)/provided by operating activities $ ( 130,737 ) $ 347,449 Cash Flows from Investing Activities: Purchase of property and equipment ( 9,111 ) ( 13,807 ) Distributions of capital from unconsolidated entities — 350 Investments of capital into unconsolidated entities ( 23,936 ) ( 11,123 ) Net cash used in investing activities $ ( 33,047 ) $ ( 24,580 ) Cash Flows from Financing Activities Increase in loans payable and other borrowings — 2,425 Repayments on loans payable and other borrowings ( 11,544 ) ( 7,377 ) Borrowings on mortgage warehouse facilities 713,090 634,404 Repayments on mortgage warehouse facilities ( 683,380 ) ( 794,142 ) Changes in stock option exercises and issuance of restricted stock units, net ( 10,856 ) 4,493 Payment of principal portion of finance lease ( 1,327 ) ( 1,305 ) Repurchase of common stock, net ( 91,649 ) ( 3,568 ) Cash and distributions to non-controlling interests of consolidated joint ventures (

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS TAYLOR MORRISON HOME CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. BUSINESS Description of the Business — Taylor Morrison Home Corporation ("TMHC"), through its subsidiaries (together with TMHC referred to herein as "we," "our," "the Company" and "us"), owns and operates a residential homebuilding business and is a land developer. We operate in the states of Arizona, California, Colorado, Florida, Georgia, Nevada, North and South Carolina, Oregon, Texas, and Washington. We provide an assortment of homes across a wide range of price points to appeal to an array of consumer groups. We design, build and sell single and multi-family detached and attached homes in traditionally high growth markets for entry level, move-up, and resort- lifestyle buyers. We are the general contractors for all real estate projects and engage subcontractors for home construction and land development. Our homebuilding segments operate under various brand names including Taylor Morrison, Darling Homes Collection by Taylor Morrison, and Esplanade. We also have a "Build-to-Rent" homebuilding business which operates under the Yardly brand name. In addition, we develop and construct multi-use properties consisting of commercial space, retail, and multi-family properties under the Urban Form brand. We also have operations which provide financial services to customers through our wholly owned mortgage subsidiary, Taylor Morrison Home Funding, INC ("TMHF"), title services through our wholly owned title services subsidiary, Inspired Title Services, LLC ("Inspired Title"), and homeowner's insurance policies through our insurance agency, Taylor Morrison Insurance Services, LLC ("TMIS"). Our business is organized into multiple homebuilding operating components, and a financial services component, all of which are managed as four reportable segments: East, Central, West, and Financial Services. 2. SUMMARY OF SIGNIFICANT ACCOUNTING PO

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS We capitalize qualifying interest costs to inventory during the development and construction periods. Capitalized interest is charged to Cost of home closings when the related inventory is charged to Cost of home closings. We assess the recoverability of our inventory in accordance with the provisions of ASC Topic 360, Property, Plant, and Equipment . We review our real estate inventory for indicators of impairment on a community-level basis during each reporting period. If indicators of impairment are present for a community, an undiscounted cash flow analysis is generally prepared in order to determine if the carrying value of the assets in that community exceeds the estimated undiscounted cash flows. Generally, if the carrying value of the assets exceeds their estimated undiscounted cash flows, the assets are potentially impaired, requiring a fair value analysis. Our determination of fair value is primarily based on a discounted cash flow model which includes projections and estimates relating to sales prices, construction costs, sales pace, and other factors. However, fair value can be determined through other methods, such as appraisals, contractual purchase offers, and other third party opinions of value. Changes in these expectations may lead to a change in the outcome of our impairment analysis, and actual results may also differ from our assumptions. For the three months ended March 31, 2024 and 2023, no impairment charges were recorded. In certain cases, we may elect to cease development and/or marketing of an existing community if we believe the economic performance of the community would be maximized by deferring development for a period of time to allow for market conditions to improve. We refer to such communities as long-term strategic assets. The decision may be based on financial and/or operational metrics as determined by us. For those communities that have been temporarily closed or development has been discontinue

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS determined that the partners have substantive participating rights that preclude the presumption of control. Our share of net earnings or losses is included in Net income from unconsolidated entities on the unaudited Condensed consolidated statements of operations when earned and distributions are credited against our Investments in unconsolidated entities on the unaudited Condensed consolidated balance sheets when received. We evaluate our investments in unconsolidated entities for indicators of impairment semi-annually. A series of operating losses of an investee or other factors may indicate that a decrease in value of our investment in the unconsolidated entity has occurred which is other-than-temporary. The amount of impairment recognized, if any, is the excess of the investment's carrying amount over its estimated fair value. Additionally, we consider various qualitative factors to determine if a decrease in the value of the investment is other-than-temporary. These factors include age of the venture, stage in its life cycle, intent and ability for us to recover our investment in the entity, financial condition and long-term prospects of the entity, short-term liquidity needs of the unconsolidated entity, trends in the general economic environment of the land, entitlement status of the land held by the unconsolidated entity, overall projected returns on investment, defaults under contracts with third parties (including bank debt), recoverability of the investment through future cash flows and relationships among the entity's partners. If we believe that the decline in the fair value of the investment is temporary, then no impairment is recorded. We recorded no impairment charges related to the investments in unconsolidated entities for the three months ended March 31, 2024 and 2023 . Treasury Stock — We account for treasury stock, including the shares repurchased as part of our Accelerated Share Repurchase program ("ASR"), in a

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