Taylor Morrison Home Corporation (NYSE: TMHC) today reported second quarter total revenue of $981 million and home closings gross margin, inclusive of capitalized interest, of 18% leading to diluted earnings per share of $0.52.
Among the Q2 2018 highlights:
- Sales per outlet were 2.6
- Net sales orders were 2,342
- Home closings were 1,992
- Total revenue was $981 million
- Home closings gross margin, inclusive of capitalized interest, was 18%
- Net income was $59 million with diluted earnings per share of $0.52
“Our teams across the country once again delivered a solid quarter meeting or exceeding all points of our guidance,” says chairman and CEO, Sheryl Palmer. “We closed 1,992 homes, nearly a 7% increase over the prior year and above our guidance range of 1,800-1,900. Our home closings gross margin was 18%, in line with guidance, and especially encouraging knowing we didn’t sacrifice margin for the additional closings.”
For the second quarter, net sales orders were 2,342 with an average community count of 297. The company ended the quarter with 4,742 units in backlog, a year-over-year increase of 7%, with a sales value of more than $2.4 billion.
“Since the AV announcement, our legal, finance and operations teams have been busy working through the standard protocol and required steps to bring this deal to the finish line. In anticipation, we intend to reposition a number of our communities to better synergize products,” says Palmer. “As a result of the repositioning, there will be a short-term reduction in average community count for the third and fourth quarter. That, combined with the early closeouts of some communities due to better than expected sales has led us to adjust our community guidance.”
Home building inventories were $3.2 billion at the end of the quarter, including 5,599 homes in inventory, compared to 5,188 homes in inventory at the end of the prior year quarter. Homes in inventory at the end of the quarter consisted of 3,612 sold units, 364 model homes and 1,623 inventory units, of which 192 were finished.
“Our earnings before income taxes were $79 million, or 8.1% of revenue while home closings gross margin, inclusive of capitalized interest, was 18% and in-line with our expectations,” says Dave Cone, executive vice president and CEO. “We experienced a differentiated geographic and product mix during the quarter and anticipate home closings gross margin to sequentially increase in the third quarter and second half of the year as the geographic and product mix reverts to be more in line with what we experienced in the first quarter.”
