Taylor Morrison Home Corporation (NYSE:TMHC) Q4 2022 Earnings Conference Call February 15, 2023 8:30 AM ET

Company Participants

Sheryl Palmer - Chairman, Chief Executive Officer

Lou Steffens - Chief Financial Officer

Erik Heuser - Chief Corporate Operations Officer

Mackenzie Aron - Vice President, Investor Relations

Conference Call Participants

Truman Patterson - Wolfe Research

Carl Reichardt - BTIG

Elizabeth Langan - Barclays

Jay McCanless - Wedbush

Doug Wardlaw - JP Morgan

Ryan Frank - RBC Capital Markets

Alan Ratner - Zelman & Associates

Dan Oppenheim - Credit Suisse

Ken Zenner - Keybanc

Alex Barron - Housing Research Center

Operator

Good morning and welcome to Taylor Morrison’s fourth quarter 2022 earnings conference call.

Currently, all participants are in a listen-only mode. Later we will conduct a question and answer session and instructions will be given at that time. As a reminder, this conference call is being recorded.

I would now like to introduce Mackenzie Aron, Vice President of Investor Relations.

Mackenzie Aron

Thank you and good morning everyone. We appreciate you joining us today.

Before we begin, let me remind you that this call, including the question and answer session, will include forward-looking statements that are subject to the Safe Harbor statement for forward-looking information that you can review in our earnings release on the Investor Relations portion of our website at taylormorrison.com. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include but are not limited to those factors identified in the release and in our filings with the SEC, and we do not undertake any obligation to update our forward-looking statements.

In addition, we will refer to certain non-GAAP financial measures on the call which are reconciled to GAAP figures in the release.

Now I will turn the call over to our Chairman and Chief Executive Officer, Sheryl Palmer.

Sheryl Palmer

Thank you Mackenzie, and good morning everyone. Joining me is Lou Steffens, our Chief Financial Officer, and Erik Heuser, our Chief Corporate Operations Officer.

As always, I will share our performance highlights, an update on the market and our strategic priorities. After my remarks, Erik will discuss our land portfolio and investments as well as an update on our build-to-rent business, while Lou will provide a detailed review of our financial results and guidance metrics.

Our team’s strong fourth quarter execution wrapped up a historic year for Taylor Morrison marked by record levels of profitability and operational performance. Despite the swift change in housing market conditions that unfolded during the year, our team delivered over 12,600 homes at a record adjusted home closings gross margin of 25.5%, which was up more than 500 basis points, and an all-time low SG&A ratio of 8.2%. This produced a nearly 60% increase in our net income on a 10% increase in total revenue.