Taylor Morrison Home Corporation (NYSE:TMHC) Q3 2023 Earnings Conference Call October 25, 2023 8:30 AM ET

Company Participants

Mackenzie Aron - Vice President, Investor Relations

Sheryl Palmer - Chairman and CEO

Curt VanHyfte - Chief Financial Officer

Erik Heuser - Chief Corporate Operations Officer

Conference Call Participants

Carl Reichardt - BTIG

Paul Przybylski - Wolfe Research

Anika Dholakia - Barclays

Doug Wardlaw - JPMorgan

Alan Ratner - Zelman & Associates

Ken Zener - Seaport Research

Jay McCanless - Wedbush

Alex Barron - Housing Research Center

Operator

Good morning. And welcome to Taylor Morrison’s Third Quarter 2023 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. Please go ahead.

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. These statements 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 Curt VanHyfte, our Chief Financial Officer; and Erik Heuser, our Chief Corporate Operations Officer. I will briefly cover this quarter’s performance and then discuss the strategy behind our balanced operating model, which we believe is critical to our success in the current housing environment. After, Erik will discuss our healthy land portfolio and investment strategy, while Curt will review our financial results and guidance metrics.

In the third quarter, our team once again achieved strong results, including the delivery of over 2,600 homes at a better-than-expected adjusted home closings gross margin of 23.9%. At the same time, we flexed each of our capital allocation priorities to increase our land investment, retire debt outstanding and repurchase our shares, all while ending the quarter with a significant liquidity position of $1.6 billion. In total, this drove a 21% year-over-year increase in our book value per share to a new high of nearly $47.