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Taylor Morrison Reports Fourth Quarter 2020 Results, Including 31% Year-Over-Year Growth to 3.4 Net Sales Orders per Community

02/10/21

SCOTTSDALE, Ariz., Feb. 10, 2021 /PRNewswire/ -- Taylor Morrison Home Corporation (NYSE: TMHC), the nation's fifth largest homebuilder, today announced financial results for the fourth quarter ended Dec. 31, 2020. The Company reported net income of $94 million, or $0.72 per diluted share, up 41 percent from the prior-year period. Adjusted net income was $115 million, or $0.87 per diluted share, after excluding transaction-related expenses and other unusual items.

The Company's fourth quarter included the following results, as compared to the prior-year quarter:

  • Monthly absorptions increased 31 percent to 3.4 net sales orders per community, among the highest levels in its public company history.
  • Total revenue increased six percent to $1.6 billion.
  • GAAP home closings gross margin increased 410 basis points to 18.3 percent.
  • Adjusted home closings gross margin, exclusive of purchase accounting and other charges, increased 110 basis points to 19.0 percent.
  • SG&A as a percentage of home closings revenue declined 40 basis points to 9.6 percent.

"Our fourth quarter results reflect the vibrant housing market and the initial traction we are seeing as a combined organization following our acquisition of William Lyon Homes one year ago," said Sheryl Palmer, Taylor Morrison Chairman and CEO. "We drove 46 percent year-over-year growth in net sales orders, a 110 basis point sequential improvement in our home closings gross margin and ended the year with a company-record backlog of more than 8,400 homes valued at over $4.2 billion." 

"Following years of strategic growth into one of the country's leading homebuilders with deep penetration across our markets and a well-balanced product portfolio that serves the needs of today's homebuyers, our top priority in 2021 is demonstrating the financial and operational benefits of our enhanced scale through an unrelenting focus on operational effectiveness and capital efficiency. We are committed to driving improved returns that are reflective of our market depth, efficient homebuilding operations and valuable land portfolio, and expect 2021 to be a pivotal year for our organization."  

"After exceeding our deleveraging targets over the last twelve months, we now expect to build on the positive momentum and further reduce our net debt-to-capitalization to the low-30 percent range by the end of 2021. Equipped with strong operating cash flow and $1.3 billion in liquidity, we have the financial flexibility to achieve our capital allocation priorities to enhance the long-term value of our company by investing in our core homebuilding business and growing build-to-rent operations, reducing our net debt and returning excess capital to shareholders via share repurchases," said Dave Cone, Executive Vice President and Chief Financial Officer.  

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

Homebuilding

  • Net sales orders increased 46 percent to 3,724, driven by strength across geographies and consumer segments.
  • Monthly absorptions increased 31 percent to 3.4 net sales orders per community, tied with the second highest level in the company's public history behind only last quarter's record sales pace of 3.8.
  • Average community count increased 11 percent to 368, although this was down six percent from 393 in the third quarter of 2020 due to accelerated close-outs of existing communities from strong sales activity that outpaced new community openings. Management currently anticipates modest community growth beginning in late 2022 before a more meaningful increase in 2023.
  • Home closings revenue increased five percent to $1.5 billion, driven by a seven percent increase in average sales price to approximately $483,000, partially offset by a two percent decline in closings.
  • GAAP home closings gross margin increased 410 basis points to 18.3 percent.
  • After excluding the impact of purchase accounting and other charges, adjusted home closings gross margin increased 110 basis points to 19.0 percent.
  • SG&A as a percentage of home closings revenue decreased 40 basis points to 9.6 percent.
  • The Company had 8,403 units in backlog, up 78 percent, with a sales value of $4.2 billion, up 86 percent.

Land Portfolio

  • The Company invested $370 million in land and development during the quarter and $1.4 billion during the year.
  • Total homebuilding lot supply equaled approximately 70,000, of which 69 percent was owned and 31 percent was controlled. Based on trailing twelve-month home closings, this represented 5.5 years of total supply and 3.8 years of owned supply.

Financial Services

  • The financial services' capture rate increased to 85 percent in the fourth quarter from 80 percent in the fourth quarter of 2019, reaching the highest level in our company history.

Balance Sheet

  • At quarter end, total available liquidity equaled approximately $1.3 billion, including $533 million of unrestricted cash and $736 million of undrawn capacity on the Company's $800 million corporate revolver.
  • The net debt-to-capitalization ratio declined 290 basis points sequentially to 38.7 percent from 41.6 percent at the end of the third quarter.
  • The company currently anticipates its net debt-to-capitalization ratio to fall further to the low-30 percent range by year-end 2021 versus its prior expectation of high-30 percent.

Business Outlook

First Quarter 2021

  • Average active community count is expected to be approximately 360 to 365
  • Home closings are expected to be between 2,850 to 2,950
  • GAAP home closings gross margin is expected to be in the mid-18 percent range
  • Effective tax rate is expected to be approximately 23.0 percent
  • Diluted share count is expected to be approximately 131 million

Full Year 2021

  • Average active community count is expected to be approximately 360 to 365
  • Home closings are expected to be between 14,500 to 15,000
  • GAAP home closings gross margin is expected to be about 19 percent
  • SG&A as a percentage of home closings revenue is expected to be in the mid-9 percent range
  • Effective tax rate is expected to be approximately 23.0 percent
  • Diluted share count is expected to be approximately 130 million
  • Land and development spend is expected to be approximately $2.0 billion

Annual Financial Comparison

($ in thousands)


2020


2019


2020 vs. 2019

Total Revenue


$6,129,320


$4,762,059


28.7%

Home Closings Revenue


$5,863,652


$4,623,484


26.8%

Home Closings Gross Margin


$975,895


$786,627


24.1%


16.6%


17.0%


40 bps decrease

Adjusted Home Closings Gross Margin


$1,055,223


$839,357


25.7%


18.0%


18.2%


20 bps decrease

SG&A

% of Home Closings Revenue


$572,375


$490,271


16.7%


9.8%


10.6%


80 bps leverage


Quarterly Financial Comparison

 ($ in thousands)


Q4 2020


Q4 2019


Q4 2020 vs. Q4 2019

Total Revenue


$1,557,502


$1,466,436


6.2%

Home Closings Revenue


$1,487,434


$1,418,232


4.9%

Home Closings Gross Margin


$272,600


$201,343


35.4%


18.3%


14.2%


410 bps increase

Adjusted Home Closings Gross Margin


$282,511


$254,073


11.2%


19.0%


17.9%


110 bps increase

SG&A

% of Home Closings Revenue


$143,205


$142,472


0.5%


9.6%


10.0%


40 bps leverage

Earnings Webcast

A public webcast to discuss the fourth quarter 2020 earnings will be held later today at 8:30 a.m. Eastern time. The participant dial-in is 1 (855) 470-8731 and the passcode is 8817967. More information can be found on the Company's investor relations website at investors.taylormorrison.com. A webcast replay will also be available on the site later today and will be available for one year from the date of the original earnings call.

About Taylor Morrison

Taylor Morrison Home Corporation (NYSE: TMHC) is the nation's fifth largest homebuilder and developer based in Scottsdale, Arizona, that has been recognized as America's Most Trusted® Home Builder for six years running (2016-2021). Operating under a family of brands including Taylor Morrison, Darling Homes, William Lyon Signature Home and Christopher Todd Communities built by Taylor Morrison, we serve consumer groups coast to coast, from first-time to move-up, luxury and 55-plus buyers. Our unwavering pledge to sustainability, our communities and our team—outlined in the 2019 Environmental, Social and Governance (ESG) Report—extends to designing thoughtful living experiences homeowners can be proud of for generations to come.

For more information about Taylor Morrison, Darling Homes and William Lyon Signature, please visit www.taylormorrison.com or www.darlinghomes.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 "believe," "expect," "intend," "estimate," "anticipate," "project," "may," "can," "could," "might," "will" 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: the scale and scope of the COVID-19 (coronavirus) outbreak and resulting pandemic; 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; inflation or deflation; the seasonality of our business; 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 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
December 31,


Twelve Months Ended
December 31,



2020


2019


2020


2019

Home closings revenue, net


$

1,487,434



$

1,418,232



$

5,863,652



$

4,623,484


Land closings revenue


25,028



12,690



65,269



27,081


Financial services revenue


40,040



30,698



155,827



92,815


Amenity and other revenue


5,000



4,816



44,572



18,679


Total revenues


1,557,502



1,466,436



6,129,320



4,762,059


Cost of home closings


1,214,834



1,216,889



4,887,757



3,836,857


Cost of land closings


21,796



23,453



64,432



32,871


Financial services expenses


23,260



14,491



88,910



51,086


Amenity and other expense


5,016



4,401



44,002



17,155


Total cost of revenues


1,264,906



1,259,234



5,085,101



3,937,969


Gross margin


292,596



207,202



1,044,219



824,090


Sales, commissions and other marketing costs


95,116



93,611



377,496



320,420


General and administrative expenses


48,089



48,861



194,879



169,851


Equity in income of unconsolidated entities


(2,298)



(1,526)



(11,176)



(9,509)


Interest income, net


(362)



(423)



(1,606)



(2,673)


Other expense, net


15,668



8,718



23,092



7,226


Transaction expenses


17,293



4,201



127,170



10,697


Loss on extinguishment of debt, net






10,247



5,806


Income before income taxes


119,090



53,760



324,117



322,272


Income tax provision/(benefit)


22,428



(949)



74,590



67,358


Net income before allocation to non-controlling interests


96,662



54,709



249,527



254,914


Net income attributable to non-controlling interests - joint ventures


(2,243)



(51)



(6,088)



(262)


Net income available to Taylor Morrison Home Corporation


$

94,419



$

54,658



$

243,439



$

254,652


Earnings per common share









Basic


$

0.73



$

0.52



$

1.90



$

2.38


Diluted


$

0.72



$

0.51



$

1.88



$

2.35


Weighted average number of shares of common stock:









Basic


129,891



105,835



127,812



106,997


Diluted


132,052



107,406



129,170



108,289


 

Taylor Morrison Home Corporation
Condensed Consolidated Balance Sheets
(In thousands)




December 31,
2020


December 31,
2019






Assets





Cash and cash equivalents


$

532,843



$

326,437


Restricted cash


1,266



2,135


Total cash, cash equivalents, and restricted cash


534,109



328,572


Owned inventory


5,209,653



3,967,359


Consolidated real estate not owned


122,773



19,185


Total real estate inventory


5,332,426



3,986,544


Land deposits


125,625



39,810


Mortgage loans held for sale


201,177



190,880


Derivative assets


5,294



2,099


Lease right of use assets


73,222



36,663


Prepaid expenses and other assets, net


242,744



86,152


Other receivables, net


96,241



70,447


Investments in unconsolidated entities


127,955



128,759


Deferred tax assets, net


238,078



140,466


Property and equipment, net


97,927



85,866


Goodwill


663,197



149,428


Total assets


$

7,737,995



$

5,245,686


Liabilities





Accounts payable


$

215,047



$

164,580


Accrued expenses and other liabilities


430,067



325,368


Lease liabilities


83,240



42,317


Income taxes payable


12,841



3,719


Customer deposits


311,257



167,328


Estimated development liability


40,625



36,705


Senior notes, net


2,452,365



1,635,008


Loans payable and other borrowings


348,741



182,531


Revolving credit facility borrowings





Mortgage warehouse borrowings


127,289



123,233


Liabilities attributable to consolidated real estate not owned


122,773



19,185


Total liabilities


$

4,144,245



$

2,699,974


Stockholders' Equity





Total stockholders' equity


3,593,750



2,545,712


Total liabilities and stockholders' equity


$

7,737,995



$

5,245,686


 

Homes Closed and Home Closings Revenue, Net:




Three Months Ended December 31,



Homes Closed


Home Closings Revenue, Net


Average Selling Price

($ in thousands)


2020


2019


Change


2020


2019


Change


2020


2019


Change

East


1,152


1,652


(30.3)%


$

494,497


$

653,420


(24.3)%


$

429


$

396


8.3%

Central


757


840


(9.9)


348,764


402,786


(13.4)


461


480


(4.0)

West


1,173


644


82.1


644,174


362,026


77.9


549


562


(2.3)

Total


3,082


3,136


(1.7)%


$

1,487,435


$

1,418,232


4.9%


$

483


$

452


6.9%




Twelve Months Ended December 31,



Homes Closed


Home Closings Revenue, Net


Average Selling Price

($ in thousands)


2020


2019


Change


2020


2019


Change


2020


2019


Change

East


4,450


4,715


(5.6)%


$

1,856,580


$

1,912,179


(2.9)%


$

417


$

406


2.7%

Central


3,548


2,784


27.4


1,618,978


1,327,197


22.0


456


477


(4.4)

West


4,526


2,465


83.6


2,388,094


1,384,108


72.5


528


562


(6.0)

Total


12,524


9,964


25.7%


$

5,863,652


$

4,623,484


26.8%


$

468


$

464


0.9%


 

Net Sales Orders:




Three Months Ended December 31,



Net Sales Orders 


Sales Value


Average Selling Price

($ in thousands)


2020


2019


Change


2020


2019


Change


2020


2019


Change

East


1,384


1,282


8.0%


$

656,541


$

509,633


28.8%


$

474


$

398


19.1%

Central


824


639


29.0


429,287


304,901


40.8


521


477


9.2

West


1,516


631


140.3


877,024


344,045


154.9


579


545


6.2

Total


3,724


2,552


45.9%


$

1,962,852


$

1,158,579


69.4%


$

527


$

454


16.1%




Twelve Months Ended December 31,



Net Sales Orders 


Sales Value


Average Selling Price

($ in thousands)


2020


2019


Change


2020


2019


Change


2020


2019


Change

East


5,469


4,893


11.8%


$

2,385,530


$

1,979,100


20.5%


$

436


$

404


7.9%

Central


3,866


3,019


28.1


1,828,183


1,434,406


27.5


473


475


(0.4)

West


5,733


2,605


120.1


3,098,862


1,405,357


120.5


541


539


0.4

Total


15,068


10,517


43.3%


$

7,312,575


$

4,818,863


51.7%


$

485


$

458


5.9%

 

Sales Order Backlog:




As of December 31,



Sold Homes in Backlog


Sales Value


Average Selling Price

($ in thousands)


2020


2019


Change


2020


2019


Change


2020


2019


Change

East


2,835


1,816


56.1%


$

1,320,436


$

791,485


66.8%


$

466


$

436


6.9%

Central


2,398


1,655


44.9


1,200,149


839,004


43.0


500


507


(1.4)

West


3,170


1,240


155.6


1,706,861


644,459


164.9


538


520


3.5

Total


8,403


4,711


78.4%


$

4,227,446


$

2,274,948


85.8%


$

503


$

483


4.1%

 

Average Active Selling Communities:




Three Months Ended
December 31,


Twelve Months Ended
December 31,



2020


2019


Change


2020


2019


Change

East


139



152



(8.6)

%


145



159



(8.8)

%

Central


113



124



(8.9)



124



134



(7.5)


West


116



57



103.5



117



58



101.7


Total


368



333



10.5

%


386



351



10.0

%

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 have provided information in this press release relating to: (i) adjusted income before income taxes and related margin, (ii) EBITDA and adjusted EBITDA, (iii) adjusted net income and adjusted earnings per share, (iv) net homebuilding debt to capitalization ratio, and (v) adjusted home closings gross margin.

Adjusted income before income taxes (and related margin) is a non-GAAP financial measure that reflects our income before income taxes excluding the impact of purchase accounting adjustments related to the acquisition of William Lyon Homes ("WLH"), transaction expenses, loss on extinguishment of debt, inventory impairment and warranty charges and legal costs relating thereto and the write-off of our Chicago operations, as applicable. EBITDA and Adjusted EBITDA are non-GAAP financial measures that measure performance by adjusting net income before allocation to non-controlling interests to exclude interest income/(expense), net, amortization of capitalized interest, income taxes, depreciation and amortization (EBITDA), non-cash compensation expense, if any, purchase accounting adjustments relating to the acquisition of WLH, transaction expenses, loss on extinguishment of debt, inventory impairment and warranty charges and legal costs relating thereto and the write-off of our Chicago operations, as applicable. Adjusted net income and adjusted earnings per share are non-GAAP financial measures that reflect the net income available to the Company excluding the impact of purchase accounting adjustments relating to the acquisition of WLH, transaction expenses, loss on extinguishment of debt, inventory impairment and warranty charges and legal costs relating thereto, the write-off of our Chicago operations and the tax impact due to such adjustments, as applicable. Net homebuilding debt to capitalization ratio is a non-GAAP financial measure we calculate by dividing (i) total debt, less unamortized debt issuance costs/premiums and mortgage warehouse borrowings, net of unrestricted cash and cash equivalents, by (ii) total capitalization (the sum of net homebuilding debt and total stockholders' equity). Adjusted home closings gross margin is a non-GAAP financial measure based on GAAP home closings gross margin (which is inclusive of capitalized interest), excluding purchase accounting adjustments relating to the acquisition of WLH and inventory impairment and warranty charges, as applicable.

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. A reconciliation of our forward-looking net homebuilding debt to capitalization ratio to the most directly comparable GAAP financial measure cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. 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.

We believe that adjusted income before income taxes and related margin, adjusted net income and adjusted earnings per share, 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.

Adjusted Net Income and Adjusted Earnings Per Share




Three Months Ended
December 31,


Twelve Months Ended
December 31,

($ in thousands, except per share data)


2020


2019


2020


2019

Net income available to TMHC


$

94,419



$

54,658



$

243,439



$

254,652


William Lyon Homes related purchase accounting adjustments


300





74,068




Inventory impairment charges


9,611



8,928



9,611



8,928


Transaction expenses


17,293



4,201



127,170



10,697


Loss on extinguishment of debt, net






10,247



5,806


Warranty charge




43,133





43,133


Write-off Chicago operations




13,285





13,285


Legal cost relating to warranty charge




6,800





6,800


Tax impact due to above non-GAAP reconciling items


(6,224)



(17,632)



(46,120)



(20,578)


Adjusted net income


$

115,399



$

113,373



$

418,415



$

322,723











Basic weighted average shares


129,891



105,835



127,812



106,997


Adjusted earnings per common share - Basic


$

0.89



$

1.07



$

3.27



$

3.02




















Diluted weighted average shares


132,052



107,406



129,170



108,289


Adjusted earnings per common share - Diluted


$

0.87



$

1.06



$

3.24



$

2.98


 

Adjusted Income Before Income Taxes and Related Margin








Three Months Ended
December 31,


Twelve Months Ended
December 31,

($ in thousands)


2020


2019


2020


2019

Income before income taxes


$

119,090


$

53,760


$

324,117


$

322,272

William Lyon Homes related purchase accounting adjustments


300



74,068


Inventory impairment charges


9,611


8,928


9,611


8,928

Transaction expenses


17,293


4,201


127,170


10,697

Loss on extinguishment of debt, net




10,247


5,806

Warranty charge



43,133



43,133

Write-off Chicago operations



13,285



13,285

Legal cost relating to warranty charge



6,800



6,800

Adjusted income before income taxes


$

146,294


$

130,107


$

545,213


$

410,921










Total revenues


$

1,557,502


$

1,466,436


$

6,129,320


$

4,762,059










Income before income taxes margin


7.6%


3.7%


5.3%


6.8%

Adjusted income before income taxes margin


9.4%


8.9%


8.9%


8.6%










 






Adjusted Home Closings Gross Margin








Three Months Ended

December 31,


Twelve Months Ended
December 31,

($ in thousands)


2020


2019


2020


2019

Home closings revenue


$

1,487,434



$

1,418,232



$

5,863,652



$

4,623,484


Cost of home closings


$

1,214,834



$

1,216,889



$

4,887,757



$

3,836,857


Home closings gross margin


$

272,600



$

201,343



$

975,895



$

786,627


William Lyon Homes homebuilding related purchase
accounting adjustments


300





69,717




Inventory impairment charges(1)


9,611



9,384



9,611



9,384


Warranty charge




43,346





43,346


Adjusted home closings gross margin


$

282,511



$

254,073



$

1,055,223



$

839,357


Home closings gross margin as a percentage of home
closings revenue


18.3%



14.2%



16.6%



17.0%


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


19.0%



17.9%



18.0%



18.2%



(1)       2019 includes $0.5 million of impairment relating to our Chicago operations write-off.




 

EBITDA and Adjusted EBITDA Reconciliation




Three Months Ended
December 31,

($ in thousands)


2020


2019

Net income before allocation to non-controlling interests


$

96,662


$

54,709

Interest income, net


(362)


(423)

Amortization of capitalized interest


28,612


30,614

Income tax provision/(benefit)


22,428


(949)

Depreciation and amortization


2,042


1,436

EBITDA


$

149,382


$

85,387

Non-cash compensation expense


4,869


3,827

William Lyon Homes related purchase accounting adjustments


300


Inventory impairment charges


9,611


8,928

Transaction expenses


17,293


4,201

Warranty charge



43,133

Write off of Chicago operations



13,285

Legal cost relating to warranty charge



6,800

Adjusted EBITDA


$

181,455


$

165,561






Total revenues


$

1,557,502


$

1,466,436

EBITDA as a percentage of total revenues


9.6%


5.8%

Adjusted EBITDA as a percentage of total revenues


11.7%


11.3%

 

Net Homebuilding Debt to Capitalization Ratio Reconciliation


($ in thousands)

As of
December 31, 2020


As of
September 30, 2020 

Total debt

$

2,928,395



$

3,180,072


Less unamortized debt issuance premiums, net

2,365



2,526


Less mortgage warehouse borrowings

127,289



109,593


Total homebuilding debt

$

2,798,741



$

3,067,953


Less cash and cash equivalents

532,843



547,916


Net homebuilding debt

$

2,265,898



$

2,520,037


Total equity

3,593,750



3,542,135


Total capitalization

$

5,859,648



$

6,062,172






Net homebuilding debt to capitalization ratio

38.7

%


41.6

%

 

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SOURCE Taylor Morrison