News Details

• U.S. revenue increased 58% to $1 billion for the quarter and 41% to $2.7 billion for the year
• Diluted earnings per share were $0.84 on net income of $103 million for the quarter
• U.S. home closings revenue increased 56% to $966 million for the quarter
• U.S. home closings increased 35% to 1,967 in the quarter and 20% to 5,642 for the year
• U.S. average price of homes closed increased 16% to $491,000 in the quarter
• U.S. net sales orders increased 24% to 1,295 in the quarter and 14% to 5,728 for the year

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Feb. 4, 2015-- Taylor Morrison Home Corporation (NYSE:TMHC) today reported fourth quarter revenue of $1 billion, net income of $103 million and earnings per share of $0.84.

“Our results this quarter and for the whole of 2014 continue to demonstrate that our long-term strategy, anchored on the pillars of prime locations, consumer focus, cost efficiency and maximizing shareholder value, is a profitable one and has proven successful,” said Taylor Morrison President and CEO Sheryl Palmer. “It was a record year for Taylor Morrison in several metrics including sales, closings, revenue, community openings, SG&A and net operating profit. I believe we will show ongoing strength in our existing operations and have a pivotal year ahead with an operating team solely focused on opportunities in the United States.”

On January 28, 2015, the Company closed the sale of its Canadian operations generating proceeds of approximately CAD $570 million, subject to certain customary post-closing adjustments. As the sale was pending at December 31, 2014, the financial results for the Canadian operations are shown as discontinued operations in the condensed consolidated statements of operations and condensed consolidated balance sheets included in this release.

4^th Quarter 2014 Key Business Highlights

• U.S. community count increased 33% to 220 average communities from 166 from the prior year quarter
• Net sales orders in the U.S. increased 24% to 1,295
• Home closings in our U.S. operations increased 35% to 1,967
• U.S. backlog increased 4% in units and 11% in value
• U.S. backlog of homes under contract was 2,252 units with a sales value of $1.1 billion as of December 31, 2014
• U.S. cancellations as a percentage of gross sales orders was 15.4%, a 6% improvement from the prior year quarter
• Average price of homes closed in the U.S. increased 16% to $491,000
• U.S. average monthly absorption pace was 2.0 compared to 2.1 in the prior year quarter
• Mortgage operations reported gross profit of $6.6 million on revenue of $12.6 million

Full Year 2014 Key Business Highlights

• U.S. community count increased 30% to 206 average communities from 158 year-over-year
• Net sales orders in the U.S. increased 14% to 5,728
• U.S. average monthly absorption pace was 2.3 compared to 2.6 in the prior year
• U.S. cancellations as a percentage of gross sales orders was 13.2% compared to 14.3% in the prior year
• Home closings in our U.S. operations increased 20% to 5,642
• Average price of homes closed in the U.S. increased 18% to $464,000
• Mortgage operations reported gross profit of $16 million on revenue of $35 million

The Company ended the quarter with U.S. home building inventories of $2.5 billion. The Company had 2,871 homes in inventory compared to 2,611 homes at the end of the prior year quarter. Homes in inventory at the end of the quarter consisted of: 1,517 sold units, 318 model homes and 1,036 inventory units, of which 332 were finished.

The Company ended the fourth quarter of 2014 with $234 million of cash, excluding $1 million of restricted cash and $228 million of cash in Canada. The Company owned or controlled approximately 38,854 lots at December 31, 2014.

First Quarter and Full Year 2015 Business Outlook

First Quarter 2015:

• Average community count – expected to be flat at 220
• Home closings – expected between 1,000 and 1,100
• Adjusted home closings margin – expected between 21.0 – 21.5%

Full Year 2015:

• Average community count – expected between 230 and 240 communities
• Home closings – up slightly from 2014
• Home closings margins – expected around 22%
• SG&A – expected to be in the mid 9% range
• Income from unconsolidated joint ventures – expected between $2-4 million
• Land spend – expected to be approximately $1 billion

Earnings Webcast

A public webcast to discuss fourth quarter 2014 earnings will be held later today at 8:30 a.m. Eastern Time Wednesday, February 4, 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).

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.

Source: Taylor Morrison Home Corporation

Taylor Morrison Home Corporation
Erin Willis, (480) 734-2060
investor@taylormorrison.com