Taylor Morrison Home Corporation, Scottsdale (NYSE:TMHC) on Thursday reported net income of $36 million for the first quarter ended March 31, or $0.30 per share, up 37% from the prior year quarter. Analysts were expecting a gain of $0.29 per share.
Total revenue was $769 million, a 19% increase from the prior year quarter, as home closings rose 17% to 1,630, representing a two-year growth rate of more than 50% and generating a 40% year-over-year increase in earnings before tax. GAAP home closings gross margin, inclusive of capitalized interest, was 18.0%.
New orders rose 33% to 2,425 as sales per outlet climbed 35% to 2.7.
Backlog of homes under contract at the end of the quarter was 3,927 units, growth of 14% from the prior year quarter. Homes in backlog had a sales value of $1.9 billion, or growth of 17% from the prior year quarter.
The Company ended the quarter with more than $300 million in cash and a net home-building debt to capitalization ratio of 33.5%.
Home-building inventories were $3.1 billion at the end of the quarter, including 4,396 homes in inventory, compared to 4,388 homes in inventory at the end of the prior year quarter. Homes in inventory at the end of the quarter consisted of 2,694 sold units, 392 model homes and 1,310 inventory units, of which 253 were finished. The company owned or controlled approximately 37,000 lots at March 31, 2017, representing 4.9 years of supply and is focused on securing land for 2019 and beyond.
When thinking about what’s on the horizon, April is really shaping up to be another strong month for us with a sales pace expected to be near three sales per community per month compared to a pace of 2.3 for the same time frame last year,” said Sheryl Palmer, president and CEO of Taylor Morrison. “We met or exceeded all metrics that we guided for in the first quarter, and are particularly delighted with our net sales orders.”
