Releases

Taylor Morrison Reports First Quarter Revenue of $509 Million and Earnings per Share of $0.79
Net income increased 134% year-over-year to $96 million for the quarter
Earnings per share increased 139% to $0.79
Total revenue increased 8% to $509 million for the quarter
Average community count expanded 22% to 228 average communities
Expansion into the Atlanta market with the acquisition of JEH Homes
PR Newswire
SCOTTSDALE, Ariz.

SCOTTSDALE, Ariz., May 6, 2015 /PRNewswire/ -- Taylor Morrison Home Corporation (NYSE:TMHC) today reported first quarter revenue of $509 million, net income of $96 million and earnings per share of $0.79.

"We are continuing to increase our share of the new home market, growing both organically and by acquisition," said Taylor Morrison President and CEO Sheryl Palmer. "Our recently strengthened balance sheet has allowed us to begin our expansion in the U.S. With the acquisition of JEH Homes, a regional homebuilder in Atlanta, we have purchased or controlled over 2,000 home sites. Looking ahead to the rest of 2015, we intend to continue executing on our four-pillar strategy while conscientiously evaluating opportunities to expand into other high-growth markets in order to drive the best long-term returns for our shareholders."

On January 28, 2015, the Company closed the sale of its Canadian operations resulting in a pre-tax gain on the sale of USD $80.2 million. The Company also initiated a foreign currency forward to mitigate potential currency exchange risks in connection with the transaction that resulted in a gain of nearly USD $30 million.

The Company utilized a portion of the proceeds from the Monarch transaction for the acquisition of JEH Homes in order to expand its geographic footprint and to diversify its consumer base.

1st Quarter 2015 Key Business Highlights

    --  Average community count increased 22% to 228 average communities from
        187 in the prior year quarter
    --  Net sales orders increased over 14% to 1,729
    --  Home closings were 1,063
    --  Backlog of homes under contract was 2,918 units, with a sales value of
        $1.4 billion as of March 31, 2015
    --  Cancellations as a percentage of gross sales orders were 11.9%, compared
        to 11.4% in the prior year quarter
    --  Average price of homes closed increased 7% to $464,000
    --  Average monthly absorption pace was 2.5
    --  Mortgage operations reported gross profit of $2.6 million on revenue of
        $7.6 million

 


    Quarterly Financial Comparison*
    ------------------------------

    ($ millions)
    -----------

                                              Q1 2015        Q1 2014               Q1 2015 vs. Q1 2014
                                              -------        -------               -------------------


    Total Revenue                                       $509                  $470                            8.3%
    -------------                                       ----                  ----                             ---

    Home Closings Revenue                               $494                  $455                            8.4%
    ---------------------                               ----                  ----                             ---

    Home Closings Gross Margin                           $88                   $99                         (10.6)%

                                                       17.9%                21.7%                      (380) bps
                                                        ----                  ----                       ---------

    Adjusted Home Closings Gross Margin                 $105                  $108                          (3.7)%

                                                       21.2%                23.8%                      (260) bps
                                                        ----                  ----                       ---------

    SG&A                                                 $57                   $53                            8.2%

    % of Home Closings Revenue
    --------------------------

                                        11.5%         11.6%   10 bps improvement
                                         ----           ----    ------------------

    * Excludes discontinued
     operations.

The Company ended the quarter with homebuilding inventories of $2.8 billion and had 3,490 homes in inventory, compared to 2,949 homes at the end of the prior year quarter. Homes in inventory at the end of the quarter consisted of: 1,994 sold units, 345 model homes and 1,151 inventory units, of which 305 were finished. The Company owned or controlled approximately 39,000 lots at March 31, 2015.

The Company ended the first quarter of 2015 with $400 million of cash, excluding $0.7 million of restricted cash. On April 16, 2015, the Company issued $350 million of 5.875% senior unsecured notes due 2023 and used the offering proceeds on May 1, 2015, together with cash on hand, to redeem the entire $489 million of its outstanding 7.75% senior notes due 2020. On April 24, 2015, the Company amended its revolving credit facility to increase the capacity to $500 million from $400 million, extended the maturity approximately two years to April 24, 2019 and reduced the borrowing rate 25 basis points to Libor plus 1.75%.

Second Quarter and Full Year 2015 Business Outlook

Second Quarter 2015:

    --  Average community count - expected to be up approximately 10 communities
        over Q1
    --  Home closings - expected between 1,375 and 1,475
    --  Adjusted home closings margin - expected to be consistent with first
        quarter results

Full Year 2015:

    --  Average community count - expected to increase to 235 to 245 communities
    --  Home closings - expected to grow approximately 10% to 15% from 2014 U.S.
        results
    --  Home closings margins - expected around 22%
    --  SG&A - expected to be in the mid 9% range
    --  Income from unconsolidated joint ventures - expected between $2 and $4
        million
    --  Land spend - expected to be approximately $1 billion
    --  Effective tax rate - expected to be between 32% to 35%

Earnings Webcast

A public webcast to discuss first quarter 2015 earnings will be held later today at 8:30 a.m. Eastern Time Wednesday, May 6, 2015 on the Company's investor relations website at investors.taylormorrison.com. A webcast replay will also be available on the site later today.

About Taylor Morrison

Taylor Morrison Home Corporation (NYSE:TMHC) is a leading national builder and developer based in Scottsdale, Arizona and operates under two well-established brands, Taylor Morrison and Darling Homes. Taylor Morrison builds and develops distinctive communities from coast to coast, serving a wide array of homeowners and aimed mainly at first-time, move-up, luxury and 55 or better customers. Darling Homes builds communities in Texas, catering to move-up and luxury homebuyers seeking a personalized building experience.

For more information about Taylor Morrison and Darling Homes 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 operating and performing 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: interest rate changes and the availability of mortgage financing; continued volatility in the debt and equity markets; competition within the industries in which we operate; the availability and cost of land and other raw materials used by us in our homebuilding operations; the impact of any changes to our strategy in responding to continuing adverse conditions in the industry, including any changes regarding our land positions; the availability and cost of insurance covering risks associated with our businesses; shortages and the cost of labor; weather related slowdowns; slow growth initiatives and/or local building moratoria; governmental regulation directed at or affecting the housing market, the homebuilding industry or construction activities; uncertainty in the mortgage lending industry, including revisions to underwriting standards and repurchase requirements associated with the sale of mortgage loans; the interpretation of or changes to tax, labor and environmental laws; economic changes nationally or in our local markets, including inflation, deflation, changes in consumer confidence and preferences and the state of the market for homes in general; legal or regulatory proceedings or claims; required accounting changes; terrorist acts and other acts of war; and other factors of national, regional and global scale, including those of a political, economic, business and competitive nature. 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. In addition, other such risks and uncertainties may be found in Taylor Morrison Home Corporation's Form 10-K filed with the Securities and Exchange Commission (SEC).

 

 


                                                Taylor Morrison Home Corporation

                                        Condensed Consolidated Statements of Operations

                                       (In thousands, except per share amounts, unaudited)


                                              Three Months Ended
                                                  March 31,
                                                  ---------

                                                            2015                            2014
                                                            ----                            ----

    Home closings revenue, net                                                     $493,592       $455,295

    Land closings revenue                                                             8,188          8,918

    Mortgage operations revenue                                                       7,635          6,262
                                                                                      -----          -----

      Total revenues                                                                509,415        470,475


    Cost of home closings                                                           405,104        356,300

    Cost of land closings                                                             4,666          6,858

    Mortgage operations expenses                                                      5,062          3,936
                                                                                      -----          -----

      Total cost of revenues                                                        414,832        367,094


    Gross margin                                                                     94,583        103,381


    Sales, commissions and other
     marketing costs                                                                 36,220         33,384

    General and administrative
     expenses                                                                        20,704         19,241

    Equity in income of
     unconsolidated entities                                                          (303)         (984)

    Interest (income) expense, net                                                     (50)           686

    Other expense, net                                                                5,771          3,098

    Gain on foreign currency
     forward                                                                       (29,983)             -
                                                                                    -------            ---

    Income from continuing
     operations before income taxes                                                  62,224         47,956

    Income tax provision                                                             22,042         10,956
                                                                                     ------         ------

    Net income from continuing
     operations                                                                      40,182         37,000

    Discontinued operations:

        Income from discontinued
         operations                                                                       -         6,435

        Transaction expenses from
         discontinued operations                                                    (9,043)             -

        Gain on sale of discontinued
         operations                                                                  80,205              -

        Income tax expense from
         discontinued operations                                                   (14,500)       (2,139)
                                                                                    -------         ------

    Net income from discontinued
     operations                                                                      56,662          4,296


    Net income before allocation to
     non-controlling interests                                                       96,844         41,296

    Net income attributable to non-
     controlling interests - joint
     ventures                                                                         (368)         (117)
                                                                                       ----           ----

    Net income before non-
     controlling interests -
     Principal Equityholders                                                         96,476         41,179

    Net income from continuing
     operations attributable to
     non-controlling interests -
     Principal Equityholders                                                       (29,133)      (27,105)

    Net income from discontinued
     operations attributable to
     non-controlling interests -
     Principal Equityholders                                                       (41,381)       (3,142)
                                                                                    -------         ------

    Net income available to Taylor
     Morrison Home Corporation                                                      $25,962        $10,932
                                                                                    -------        -------


    Earnings per common share -
     basic:

        Income from continuing
         operations                                                                   $0.33          $0.30

        Income from discontinued
         operations -net of tax                                                       $0.46          $0.03
                                                                                      -----          -----

        Net income available to Taylor
         Morrison Home Corporation                                                    $0.79          $0.33


    Earnings per common share -
     diluted:

        Income from continuing
         operations                                                                   $0.33          $0.30

        Income from discontinued
         operations -net of tax                                                       $0.46          $0.03
                                                                                      -----          -----

        Net income available to Taylor
         Morrison Home Corporation                                                    $0.79          $0.33


    Weighted average number of
     shares of common stock:

        Basic                                                                        33,067         32,858

        Diluted                                                                     122,355        122,344

 


                              Taylor Morrison Home Corporation

                           Condensed Consolidated Balance Sheets

                                       (In thousands)

                                          March 31,              December 31,

                                                         2015                      2014
                                                         ----                      ----

    Assets                               (Unaudited)
    ------

    Cash and
     cash
     equivalents                                     $399,537                  $234,217

     Restricted
     cash                                                 655                     1,310

    Real estate inventory:

          Owned
           inventory                                2,750,090                 2,511,623

          Real
           estate
           not
           owned
           under
           option
           agreements                                   4,640                     6,698
                                                        -----                     -----

              Total
               real
               estate
               inventory                            2,754,730                 2,518,321

    Land
     deposits                                          31,364                    34,544

    Mortgages
     receivable                                        83,407                   191,140

    Prepaid
     expenses
     and
     other
     assets,
     net                                              101,854                    89,210

    Other
     receivables,
     net                                               99,354                    85,274

     Investments
     in
     unconsolidated
     entities                                         112,813                   110,291

    Deferred
     tax
     assets,
     net                                              251,392                   258,190

    Property
     and
     equipment,
     net                                                4,893                     5,337

     Intangible
     assets,
     net                                                6,392                     5,459

    Goodwill                                           23,375                    23,375

    Assets of
     discontinued
     operations                                             -                  576,445

      Total
       assets                                      $3,869,766                $4,133,113
                                                   ==========                ==========


    Liabilities
    -----------

    Accounts
     payable                                         $136,815                  $122,466

    Accrued
     expenses
     and
     other
     liabilities                                      179,488                   200,556

    Income
     taxes
     payable                                           39,772                    50,096

    Customer
     deposits                                          85,772                    70,465

    Senior
     notes                                          1,388,676                 1,388,840

    Loans
     payable
     and
     other
     borrowings                                       128,184                   147,516

    Revolving
     credit
     facility
     borrowings                                             -                   40,000

    Mortgage
     warehouse
     borrowings                                        55,245                   160,750

     Liabilities
     attributable
     to
     consolidated
     option
     agreements                                         4,640                     6,698

     Liabilities
     of
     discontinued
     operations                                             -                  168,565

      Total
       liabilities                                 $2,018,592                $2,355,952
                                                   ==========                ==========


    Stockholders' Equity
    --------------------

    Total
     stockholders'
     equity                                         1,851,174                 1,777,161

      Total
       liabilities
       and
       stockholders'
       equity                                      $3,869,766                $4,133,113
                                                   ==========                ==========

 


    Homes Closed:               Three Months Ended March 31,
                                ----------------------------

                                               2015                      2014
                                               ----                      ----

    (Dollars in thousands)            Homes                  Value            Homes       Value
                                      -----                  -----            -----       -----

    East                                        692                  $297,566         672         $264,334

    West                                        371                   196,026         383          190,961
                                                ---                   -------         ---          -------

    Total                                     1,063                  $493,592       1,055         $455,295
                                              =====                  ========       =====         ========



    Net Sales Orders:        Three Months Ended March 31,
                             ----------------------------

                                               2015                      2014
                                               ----                      ----

    (Dollars in thousands)            Homes                  Value            Homes       Value
                                      -----                  -----            -----       -----

    East                                      1,042                  $440,464         922         $381,220

    West                                        687                   331,033         592          313,108
                                                ---                   -------         ---          -------

    Total                                     1,729                  $771,497       1,514         $694,328
                                              =====                  ========       =====         ========



    Sales Order Backlog:            As of March 31,
                                    ---------------

                                               2015                      2014
                                               ----                      ----

    (Dollars in thousands)            Homes                  Value            Homes       Value
                                      -----                  -----            -----       -----

    East                                      2,059                  $976,036       1,794         $811,300

    West                                        859                   441,092         831          451,931
                                                ---                   -------         ---          -------

    Total                                     2,918                $1,417,128       2,625       $1,263,231
                                              =====                ==========       =====       ==========



    Average Active Selling
     Communities:              Three Months Ended

                   March 31,
                   ---------

                                               2015                      2014
                                               ----                      ----

    East                                        166                       136

    West                                         62                        51
                                                ---                       ---

    Total                                       228                       187
                                                ---                       ---




    Average Selling Price of
     Homes Closed:             Three Months Ended

                   March 31,
                   ---------

    (In thousands)                             2015                      2014
                                               ----                      ----

    East                                       $430                      $393

    West                                        528                       499

    Total                                      $464                      $432

 

Reconciliation of Non-GAAP Financial Measures

The following table sets forth a reconciliation between our home closings gross margin and our adjusted home closings gross margin. Adjusted home closings gross margin is a non-GAAP financial measure calculated based on gross margins, excluding impairments and capitalized interest amortization. Management uses adjusted home closings gross margins to evaluate our performance on a consolidated basis as well as the performance of our regions. We believe adjusted home closings gross margin is useful to investors because it allows investors to evaluate the performance of our homebuilding operations without the often varying effects of interest costs capitalized.

This measure is considered a non-GAAP financial measure and should be considered in addition to, rather than as a substitute for, the comparable U.S. GAAP financial measures as a measure of our operating performance. Although other companies in the homebuilding industry report similar information, the methods used may differ. We urge investors to understand the methods used by other companies in the homebuilding industry to calculate net income and gross margins and any adjustments to such amounts before comparing our measures to those of such other companies.


    Adjusted Home Closings Gross Margin Reconciliation - Continuing Operations


                                         Three Months Ended March 31,
                                         ----------------------------

     (Dollars in
      thousands)                                   2015                           2014
                                                   ----                           ----

    Home closings
     revenue                                   $493,592                       $455,295

    Cost of home
     closings                                   405,104                        356,300
                                                -------                        -------

    Home closings gross
     margin                                      88,488                         98,995

    Add:

    Capitalized
     interest
     amortization                                16,027                          9,490
                                                 ------                          -----

    Adjusted home
     closings gross
     margin                                    $104,515                       $108,485
                                               --------                       --------

    Home closings gross
     margin as a
     percentage of home
     closings revenue                             17.9%                         21.7%

    Adjusted home
     closings gross
     margin as a
     percentage of home
     closings revenue                             21.2%                         23.8%

 

CONTACT: Investor Relations
Taylor Morrison Home Corporation
(480) 734-2060
investor@taylormorrison.com

http://photos.prnewswire.com/prnvar/20150422/200427LOGO

Logo - http://photos.prnewswire.com/prnh/20150422/200427LOGO

 

SOURCE Taylor Morrison

Photo:http://photos.prnewswire.com/prnh/20150422/200427LOGO
http://photoarchive.ap.org/

 

SOURCE: Taylor Morrison

 

Taylor Morrison Reports First Quarter Revenue of $509 Million and Earnings per Share of $0.79

Net income increased 134% year-over-year to $96 million for the quarter

Earnings per share increased 139% to $0.79

Total revenue increased 8% to $509 million for the quarter

Average community count expanded 22% to 228 average communities

Expansion into the Atlanta market with the acquisition of JEH Homes

PR Newswire

SCOTTSDALE, Ariz., May 6, 2015 /PRNewswire/ -- Taylor Morrison Home Corporation (NYSE:TMHC) today reported first quarter revenue of $509 million, net income of $96 million and earnings per share of $0.79.

"We are continuing to increase our share of the new home market, growing both organically and by acquisition," said Taylor Morrison President and CEO Sheryl Palmer.  "Our recently strengthened balance sheet has allowed us to begin our expansion in the U.S.  With the acquisition of JEH Homes, a regional homebuilder in Atlanta, we have purchased or controlled over 2,000 home sites.  Looking ahead to the rest of 2015, we intend to continue executing on our four-pillar strategy while conscientiously evaluating opportunities to expand into other high-growth markets in order to drive the best long-term returns for our shareholders."

On January 28, 2015, the Company closed the sale of its Canadian operations resulting in a pre-tax gain on the sale of USD $80.2 million.  The Company also initiated a foreign currency forward to mitigate potential currency exchange risks in connection with the transaction that resulted in a gain of nearly USD $30 million.

The Company utilized a portion of the proceeds from the Monarch transaction for the acquisition of JEH Homes in order to expand its geographic footprint and to diversify its consumer base.

1st Quarter 2015 Key Business Highlights

  • Average community count increased 22% to 228 average communities from 187 in the prior year quarter
  • Net sales orders increased over 14% to 1,729
  • Home closings were 1,063
  • Backlog of homes under contract was 2,918 units, with a sales value of $1.4 billion as of March 31, 2015
  • Cancellations as a percentage of gross sales orders were 11.9%, compared to 11.4% in the prior year quarter
  • Average price of homes closed increased 7% to $464,000
  • Average monthly absorption pace was 2.5
  • Mortgage operations reported gross profit of $2.6 million on revenue of $7.6 million

 

Quarterly Financial Comparison*

($ millions)

     
 

Q1 2015

Q1 2014

Q1 2015 vs. Q1 2014

       

Total Revenue

$509

$470

8.3%

Home Closings Revenue

$494

$455

8.4%

Home Closings Gross Margin

$88

$99

(10.6)%

 

17.9%

21.7%

(380) bps

Adjusted Home Closings Gross Margin

$105

$108

(3.7)%

 

21.2%

23.8%

(260) bps

SG&A

% of Home Closings Revenue

$57

$53

8.2%

11.5%

11.6%

10 bps improvement

* Excludes discontinued operations.

The Company ended the quarter with homebuilding inventories of $2.8 billion and had 3,490 homes in inventory, compared to 2,949 homes at the end of the prior year quarter.  Homes in inventory at the end of the quarter consisted of: 1,994 sold units, 345 model homes and 1,151 inventory units, of which 305 were finished.  The Company owned or controlled approximately 39,000 lots at March 31, 2015.

The Company ended the first quarter of 2015 with $400 million of cash, excluding $0.7 million of restricted cash. On April 16, 2015, the Company issued $350 million of 5.875% senior unsecured notes due 2023 and used the offering proceeds on May 1, 2015, together with cash on hand, to redeem the entire $489 million of its outstanding 7.75% senior notes due 2020.  On April 24, 2015, the Company amended its revolving credit facility to increase the capacity to $500 million from $400 million, extended the maturity approximately two years to April 24, 2019 and reduced the borrowing rate 25 basis points to Libor plus 1.75%.

Second Quarter and Full Year 2015 Business Outlook

Second Quarter 2015:

  • Average community count – expected to be up approximately 10 communities over Q1
  • Home closings – expected between 1,375 and 1,475
  • Adjusted home closings margin – expected to be consistent with first quarter results

Full Year 2015:

  • Average community count – expected to increase to 235 to 245 communities
  • Home closings – expected to grow approximately 10% to 15% from 2014 U.S. results
  • Home closings margins – expected around 22%
  • SG&A – expected to be in the mid 9% range
  • Income from unconsolidated joint ventures – expected between $2 and $4 million
  • Land spend – expected to be approximately $1 billion
  • Effective tax rate – expected to be between 32% to 35%

Earnings Webcast

A public webcast to discuss first quarter 2015 earnings will be held later today at 8:30 a.m. Eastern Time Wednesday, May 6, 2015 on the Company's investor relations website at investors.taylormorrison.com.  A webcast replay will also be available on the site later today.

About Taylor Morrison

Taylor Morrison Home Corporation (NYSE:TMHC) is a leading national builder and developer based in Scottsdale, Arizona and operates under two well-established brands, Taylor Morrison and Darling Homes. Taylor Morrison builds and develops distinctive communities from coast to coast, serving a wide array of homeowners and aimed mainly at first-time, move-up, luxury and 55 or better customers.  Darling Homes builds communities in Texas, catering to move-up and luxury homebuyers seeking a personalized building experience. 

For more information about Taylor Morrison and Darling Homes 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 operating and performing 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: interest rate changes and the availability of mortgage financing; continued volatility in the debt and equity markets; competition within the industries in which we operate; the availability and cost of land and other raw materials used by us in our homebuilding operations; the impact of any changes to our strategy in responding to continuing adverse conditions in the industry, including any changes regarding our land positions; the availability and cost of insurance covering risks associated with our businesses; shortages and the cost of labor; weather related slowdowns; slow growth initiatives and/or local building moratoria; governmental regulation directed at or affecting the housing market, the homebuilding industry or construction activities; uncertainty in the mortgage lending industry, including revisions to underwriting standards and repurchase requirements associated with the sale of mortgage loans; the interpretation of or changes to tax, labor and environmental laws; economic changes nationally or in our local markets, including inflation, deflation, changes in consumer confidence and preferences and the state of the market for homes in general; legal or regulatory proceedings or claims; required accounting changes; terrorist acts and other acts of war; and other factors of national, regional and global scale, including those of a political, economic, business and competitive nature. 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. In addition, other such risks and uncertainties may be found in Taylor Morrison Home Corporation's Form 10-K filed with the Securities and Exchange Commission (SEC).

 

 

Taylor Morrison Home Corporation

Condensed Consolidated Statements of Operations 

 (In thousands, except per share amounts, unaudited)

             
   

Three Months Ended
March 31,

   

2015

 

2014

Home closings revenue, net

 

$

493,592

 

$

455,295

Land closings revenue

   

8,188

   

8,918

Mortgage operations revenue

   

7,635

   

6,262

  Total revenues

   

509,415

   

470,475

             

Cost of home closings

   

405,104

   

356,300

Cost of land closings

   

4,666

   

6,858

Mortgage operations expenses

   

5,062

   

3,936

  Total cost of revenues

   

414,832

   

367,094

             

Gross margin

   

94,583

   

103,381

             

Sales, commissions and other marketing costs

   

36,220

   

33,384

General and administrative expenses

   

20,704

   

19,241

Equity in income of unconsolidated entities

   

(303)

   

(984)

Interest (income) expense, net

   

(50)

   

686

Other expense, net

   

5,771

   

3,098

Gain on foreign currency forward

   

(29,983)

   

-

Income from continuing operations before income taxes

   

62,224

   

47,956

Income tax provision

   

22,042

   

10,956

Net income from continuing operations

   

40,182

   

37,000

Discontinued operations:

           

    Income from discontinued operations

   

-

   

6,435

    Transaction expenses from discontinued operations

   

(9,043)

   

-

    Gain on sale of discontinued operations

   

80,205

   

-

    Income tax expense from discontinued operations

   

(14,500)

   

(2,139)

Net income from discontinued operations

   

56,662

   

4,296

             

Net income before allocation to non-controlling interests

   

96,844

   

41,296

Net income attributable to non-controlling interests - joint ventures

   

(368)

   

(117)

Net income before non-controlling interests - Principal Equityholders

   

96,476

   

41,179

Net income from continuing operations attributable to non-controlling interests - Principal Equityholders

   

(29,133)

   

(27,105)

Net income from discontinued operations attributable to non-controlling interests - Principal Equityholders

   

(41,381)

   

(3,142)

Net income available to Taylor Morrison Home Corporation 

 

$

25,962

 

$

10,932

             

Earnings per common share - basic:

           

    Income from continuing operations

   

$    0.33

   

$   0.30

    Income from discontinued operations - net of tax

   

$    0.46

   

$   0.03

    Net income available to Taylor Morrison Home Corporation

   

$    0.79

   

$   0.33

             

Earnings per common share - diluted:

           

    Income from continuing operations

   

$    0.33

   

$   0.30

    Income from discontinued operations - net of tax

   

$    0.46

   

$   0.03

    Net income available to Taylor Morrison Home Corporation

   

$    0.79

   

$   0.33

             

Weighted average number of shares of common stock:

           

    Basic 

   

33,067

   

32,858

    Diluted 

   

122,355

   

122,344

 

Taylor Morrison Home Corporation

Condensed Consolidated Balance Sheets

 (In thousands)

 

March 31,

 

December 31,

 

2015

 

2014

Assets

(Unaudited)

   

Cash and cash equivalents

$   399,537

 

$     234,217

Restricted cash

655

 

1,310

Real estate inventory:

     

      Owned inventory

2,750,090

 

2,511,623

      Real estate not owned under option agreements

4,640

 

6,698

          Total real estate inventory

2,754,730

 

2,518,321

Land deposits

31,364

 

34,544

Mortgages receivable

83,407

 

191,140

Prepaid expenses and other assets, net

101,854

 

89,210

Other receivables, net

99,354

 

85,274

Investments in unconsolidated entities

112,813

 

110,291

Deferred tax assets, net

251,392

 

258,190

Property and equipment, net

4,893

 

5,337

Intangible assets, net

6,392

 

5,459

Goodwill

23,375

 

23,375

Assets of discontinued operations

-

 

576,445

  Total assets

$3,869,766

 

$  4,133,113

       

Liabilities

     

Accounts payable

$   136,815

 

$     122,466

Accrued expenses and other liabilities

179,488

 

200,556

Income taxes payable

39,772

 

50,096

Customer deposits

85,772

 

70,465

Senior notes

1,388,676

 

1,388,840

Loans payable and other borrowings

128,184

 

147,516

Revolving credit facility borrowings

-

 

40,000

Mortgage warehouse borrowings

55,245

 

160,750

Liabilities attributable to consolidated option agreements

4,640

 

6,698

Liabilities of discontinued operations

-

 

168,565

  Total liabilities

$2,018,592

 

$  2,355,952

       

Stockholders' Equity

     

Total stockholders' equity

1,851,174

 

1,777,161

  Total liabilities and stockholders' equity

$3,869,766

 

$  4,133,113

 

Homes Closed: 

Three Months Ended March 31,

 

2015

 

2014

(Dollars in thousands)

Homes

 

Value

 

Homes

 

Value

East

692

 

$       297,566

 

672

 

$264,334

West

371

 

196,026

 

383

 

190,961

Total

1,063

 

$       493,592

 

1,055

 

$       455,295

               
               

Net Sales Orders:

Three Months Ended March 31,

 

2015

 

2014

(Dollars in thousands)

Homes

 

Value

 

Homes

 

Value

East

1,042

 

$       440,464

 

922

 

$381,220

West

687

 

331,033

 

592

 

313,108

Total

1,729

 

$       771,497

 

1,514

 

$       694,328

               
               

Sales Order Backlog:

As of March 31,

 

2015

 

2014

(Dollars in thousands)

Homes

 

Value

 

Homes

 

Value

East

2,059

 

$       976,036

 

1,794

 

$811,300

West

859

 

441,092

 

831

 

451,931

Total

2,918

 

$    1,417,128

 

2,625

 

$    1,263,231

               
               

Average Active Selling Communities:

Three Months Ended

   

March 31,

 
 

2015

 

2014

       

East

166

 

136

       

West

62

 

51

       

Total

228

 

187

       
               
               
               

Average Selling Price of Homes Closed:

Three Months Ended

   

March 31,

 

(In thousands)

2015

 

2014

       

East

$430

 

$393

       

West

528

 

499

       

Total

$464

 

$432

       

 

Reconciliation of Non-GAAP Financial Measures

The following table sets forth a reconciliation between our home closings gross margin and our adjusted home closings gross margin. Adjusted home closings gross margin is a non-GAAP financial measure calculated based on gross margins, excluding impairments and capitalized interest amortization. Management uses adjusted home closings gross margins to evaluate our performance on a consolidated basis as well as the performance of our regions. We believe adjusted home closings gross margin is useful to investors because it allows investors to evaluate the performance of our homebuilding operations without the often varying effects of interest costs capitalized.

This measure is considered a non-GAAP financial measure and should be considered in addition to, rather than as a substitute for, the comparable U.S. GAAP financial measures as a measure of our operating performance. Although other companies in the homebuilding industry report similar information, the methods used may differ. We urge investors to understand the methods used by other companies in the homebuilding industry to calculate net income and gross margins and any adjustments to such amounts before comparing our measures to those of such other companies.

Adjusted Home Closings Gross Margin Reconciliation - Continuing Operations

 
 

Three Months Ended March 31,

 (Dollars in thousands)

2015

 

2014

Home closings revenue

$     493,592

 

$   455,295

Cost of home closings

405,104

 

356,300

Home closings gross margin

88,488

 

98,995

Add:

     

Capitalized interest amortization

16,027

 

9,490

Adjusted home closings gross margin

$     104,515

 

$   108,485

Home closings gross margin as a percentage of home closings revenue

17.9%

 

21.7%

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

21.2%

 

23.8%

 

CONTACT: Investor Relations
Taylor Morrison Home Corporation
(480) 734-2060
investor@taylormorrison.com

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SOURCE Taylor Morrison