Taylor Morrison Reports Fourth Quarter 2020 Results, Including 31% Year-Over-Year Growth to 3.4 Net Sales Orders per Community
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 $572,375 $490,271 16.7%
% of Home Closings Revenue
9.8% 10.6% 80 bps leverage
Quarterly Financial Comparison
($ 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 $143,205 $142,472 0.5%
% of Home Closings Revenue
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 Twelve Months Ended
December 31, 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, December 31,
2020 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 Twelve Months Ended
December 31, 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 Twelve Months Ended
December 31, 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 Twelve Months Ended
December 31, 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
Twelve Months Ended
December 31,
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 300 69,717
accounting adjustments
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 18.3% 14.2% 16.6% 17.0%
closings revenue
Adjusted home closings gross
margin as a percentage of 19.0% 17.9% 18.0% 18.2%
home closings revenue
(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 As of
December 31, 2020 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
