Taylor Morrison(TMHC)2025-02-19 21:51Debt and Interest Rates - As of December 31, 2024, approximately 92% of the company's debt was fixed rate, while 8% was variable rate[312]. - The company had no outstanding borrowings under its $1 Billion Revolving Credit Facility as of December 31, 2024, with approximately $947.1 million of additional availability for borrowings[312]. - Each 1% increase in interest rates would increase the interest incurred by the company by approximately $1.7 million per year for its variable rate debt[316]. - The total fixed rate debt amounts to $1,952.6 million, with a weighted average interest rate of 4.9%[316]. - The effective weighted average interest rate for variable rate debt is 6.2%[316]. - The company’s mortgage warehouse facilities use SOFR as the basis for determining interest rates, which may lead to increased costs for variable rate indebtedness[313]. - The total mortgage warehouse borrowings as of December 31, 2024 amounted to $174.46 million, with a total facility amount of $410 million[440]. - The company reported total debt of $2.127 billion as of December 31, 2024, with future minimum principal payments scheduled for 2025 at $307.646 million[443]. - Total debt increased to $2.13 billion in 2024 from $2.02 billion in 2023, marking a 5.5% increase[419]. Financial Performance - Total revenue for 2024 was $8,168,136, an increase of 10.1% from $7,417,831 in 2023[337]. - Home closings revenue reached $7,755,219, up 8.3% from $7,158,857 in the previous year[337]. - Net income for 2024 was $883,309, representing a 14.8% increase compared to $768,929 in 2023[337]. - Earnings per diluted share increased to $8.27 in 2024 from $6.98 in 2023, a rise of 18.5%[337]. - Total assets grew to $9,297,131 in 2024, up from $8,672,087 in 2023, reflecting a 7.2% increase[335]. - Total liabilities increased to $3,418,951 in 2024, compared to $3,339,801 in 2023, marking a 2.4% rise[335]. - Retained earnings rose to $4,393,853 in 2024, up from $3,510,544 in 2023, an increase of 25.1%[335]. - The company reported a gross margin of $1,984,212 for 2024, compared to $1,783,073 in 2023, indicating a margin improvement[337]. - Financial services revenue increased to $199,459 in 2024, up from $160,312 in 2023, a growth of 24.4%[337]. - Comprehensive income available to Taylor Morrison Home Corporation was $884,922 in 2024, compared to $769,466 in 2023, an increase of 15.0%[340]. - Cash provided by operating activities for 2024 was $210,079,000, a significant decrease from $806,169,000 in 2023[344]. - The company repurchased $347,598,000 worth of common stock in 2024, compared to $127,959,000 in 2023, indicating an increase in share buybacks[344]. Real Estate and Inventory - Total real estate inventory as of December 31, 2024, was $6.234 billion, up from $5.545 billion in 2023, with developed and under development real estate valued at $4.456 billion[404]. - Real estate inventory and land deposits decreased by $797,330,000 in 2024, compared to a decrease of $78,575,000 in 2023[344]. - The company acquired approximately 1,700 owned and controlled lots from Pyatt Builders on April 29, 2024, as part of an asset acquisition[396]. - The total number of owned and controlled lots increased to 86,153 as of December 31, 2024, from 72,362 in 2023[406]. - Real estate inventory in unconsolidated entities increased to $1.397 billion in 2024 from $952.2 million in 2023, with net income from these entities at $16.6 million[411]. Stock and Equity - Total stockholders' equity as of December 31, 2024, reached $5,878,180,000, up from $5,332,286,000 in 2023, reflecting a growth of 10.3%[342]. - As of December 31, 2024, the company authorized a stock repurchase program allowing for the repurchase of up to $1.0 billion of common stock through December 31, 2026[457]. - The total amount repurchased under the stock repurchase program for the year ended December 31, 2024, was 5,607,852 shares, compared to 2,814,956 shares in 2023[460]. - The company recognized stock-based compensation expense of $22.461 million for the year ended December 31, 2024, down from $26.095 million in 2023[462]. - The aggregate intrinsic value of options outstanding as of December 31, 2024, was $63.069 million, compared to $59.758 million in 2023[464]. Tax and Deferred Assets - The provision for income taxes for the year ended December 31, 2024 was $269.548 million, with an effective tax rate of 23.3%[450]. - The company’s effective tax rate decreased from 24.4% in 2023 to 23.3% in 2024[450]. - Deferred tax assets totaled $148.897 million and deferred tax liabilities were $66.921 million as of December 31, 2024, resulting in net deferred tax assets of $76.248 million[452]. - The company has approximately $163.2 million in available gross federal NOL carryforwards, which may offset future taxable income for a period of 20 years[453]. Legal and Compliance - The company is currently under examination by the IRS for certain federal income tax returns for tax years 2015 through 2018 and 2021, with outcomes not yet determinable[455]. - The court has approved an agreement regarding class certification in the ongoing litigation, although the ultimate outcome remains uncertain[482]. - The company has recorded an estimated liability accrual related to a class action suit, reflecting potential costs associated with litigation as of December 31, 2024[482]. Commitments and Liabilities - Total future minimum lease payments required under leases as of December 31, 2024, amount to $325.318 million, with $62.378 million in operating lease payments and $262.940 million in finance lease payments[370]. - Total accrued expenses and other liabilities increased to $632.25 million in 2024 from $549.07 million in 2023, representing a 15.1% increase[414]. - Self-insurance and warranty reserves rose to $214.11 million in 2024, up from $184.45 million in 2023, reflecting a 16.0% increase[414]. - Estimated development liabilities were reduced by $23.1 million in 2024, contributing approximately $0.17 per diluted share, compared to a reduction of $14.8 million and $0.10 per diluted share in 2023[417]. Derivative Instruments and Risk Management - The fair value of derivative assets related to interest rate lock commitments is reflected on the balance sheet, with changes recognized in Financial Services revenue[372]. - The fair value of interest rate lock commitments (IRLCs) was $(5,917) thousand as of December 31, 2024, with a notional amount of $233,881 thousand[484]. - The company has exposure to credit loss from derivative instruments used in rate risk management, managed by selecting financially strong counterparties and spreading risk[486]. - The notional amounts in the derivative instruments table include mandatory and best effort mortgages that have been locked and approved[484].