Taylor Morrison Reports Fourth Quarter Revenue of $970 Million and Earnings per Share of $0.53

SCOTTSDALE, Ariz., Feb. 3, 2016 /PRNewswire/ -- Taylor Morrison Home Corporation (NYSE:TMHC) today reported fourth quarter total revenue of $970 million, net income of $65 million and earnings per share of $0.53.

"2015 proved to be a transformational year as expected.  Our teams delivered a solid fourth quarter and full year.  The year began with the sale of our Canadian business, which was quickly followed up with two acquisitions in 2015," said Taylor Morrison's President and CEO, Sheryl Palmer. "Through it all, we remained true to our four-pillar strategy of pursuing core locations, building distinctive communities, maintaining a cost efficient culture and balancing price and pace appropriately. And with the recent announcement of our acquisition of Acadia Homes & Neighborhoods, we enter 2016 poised to remain an industry leader."

4th Quarter 2015 Key Business Highlights

• Average community count increased 30% from the prior year quarter to 286 average communities
• Net sales orders increased over 11% from the prior year quarter to 1,440
• Home closings increased over 5% from the prior year quarter to 2,068
• Backlog of homes under contract at the end of the quarter was 2,932 units, with a sales value of $1.4 billion
• Average price of homes closed was $452,000
• Average monthly absorption pace per community was 1.7 for the quarter
• Mortgage operations reported gross profit of $6.9 million on revenue of $14.3 million

Full Year 2015 Key Business Highlights

• Average community count increased 26% from the prior year to 259 average communities
• Net sales orders increased 17% to 6,681
• Home closings increased 12% to 6,311
• Average price of homes closed was $458,000
• Average monthly absorption pace per community was 2.15 for the year
• Mortgage operations reported gross profit of $17.5 million on revenue of $43.1 million

The Company ended the quarter with homebuilding inventories of $3.1 billion and 3,851 homes in inventory, compared to 2,871 homes at the end of the prior year quarter.  Homes in inventory at the end of the quarter consisted of 2,096 sold units, 438 model homes and 1,317 inventory units, of which 481 were finished.  The Company owned or controlled approximately 43,000 lots at December 31, 2015.

First Quarter and Full Year 2016 Business Outlook

First Quarter 2016:

• Average community count – expected to be between 305 to 315
• Home closings – expected to be between 1,250 and 1,350
• GAAP home closings gross margin, including capitalized interest – expected to be in the mid-to-high 17% range
• Adjusted home closings gross margin, excluding capitalized interest – expected to be in the low 20% range

Full Year 2016:

• Average community count – expected to be between 310 to 320
• Home closings – year-over-year growth of between 10% to 15%
• GAAP home closings gross margin, including capitalized interest – expected to be in the low-to-mid 18% range
• Adjusted home closings gross margin, excluding capitalized interest – expected to be in the mid-to-high 20% range
• SG&A – expected to be around 10%
• Income from unconsolidated joint ventures – expected to be between $10 million and $15 million
• Land and development spend – expected to be at or just below $1 billion
• Effective tax rate – expected to be between 33% and 35%

Earnings Call Presentation

Company management will refer to a presentation as they discuss the results for Q4 and FY 2015 on the public webcast.  This presentation can be found at the Taylor Morrison investor relations website at www.investors.taylormorrison.com under the Events tab at the top.

Earnings Webcast

A public webcast to discuss the fourth quarter 2015 earnings will be held later today at 8:30 a.m. Eastern time. The participant dial-in is 1(888)771-4371 and the confirmation number is 41610860. More information can be found on the Company's investor relations website at investors.taylormorrison.com. A webcast replay will also be available on the site later today and will be available for one year from the date of the original earnings call.

About Taylor Morrison

Taylor Morrison Home Corporation (NYSE:TMHC) is a leading national homebuilder 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 primarily 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; our ability to successfully integrate acquired assets and businesses; 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 tables set forth a reconciliation between our home closings gross margin and our adjusted home closings gross margin and our net income and adjusted EBITDA. Adjusted home closings gross margin is a non-GAAP financial measure calculated based on home closings gross margin, excluding impairments, if any, and capitalized interest amortization. Adjusted EBITDA is a non-GAAP financial metric that measures performance by adjusting net income from continuing operations to exclude interest, income taxes, depreciation and amortization, and non-cash compensation expenses. Management uses these non-GAAP measures to evaluate our performance on a consolidated basis as well as the performance of our regions. In the future we may include additional adjustments in the above described non-GAAP financial measures, to the extent we deem them appropriate and useful to management and investors.

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. We believe adjusted EBITDA provides useful information to investors regarding our results of operations for similar reasons and also because it assists both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted EBITDA provides an indicator of general economic performance that is not affected by fluctuations in interest rates or effective tax rates, levels of depreciation or amortization, or non-recurring items.

These measures are considered non-GAAP financial measures 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.

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SOURCE Taylor Morrison Home Corporation

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