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ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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83-2026677
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Large accelerated filer
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ý
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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Smaller reporting company
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¨
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Emerging growth company
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¨
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Class
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Outstanding as of October 31, 2018
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Class A common stock, $0.00001 par value
|
|
118,678,633
|
|
|
Page
|
|
|
|
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September 30,
2018 |
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December 31,
2017 |
||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
382,054
|
|
|
$
|
573,925
|
|
Restricted cash
|
|
1,319
|
|
|
1,578
|
|
||
Total cash, cash equivalents, and restricted cash
|
|
383,373
|
|
|
575,503
|
|
||
Owned inventory
|
|
3,255,300
|
|
|
2,956,709
|
|
||
Real estate not owned
|
|
13,811
|
|
|
2,527
|
|
||
Total real estate inventory
|
|
3,269,111
|
|
|
2,959,236
|
|
||
Land deposits
|
|
47,855
|
|
|
49,768
|
|
||
Mortgage loans held for sale
|
|
83,751
|
|
|
187,038
|
|
||
Derivative assets
|
|
2,329
|
|
|
1,584
|
|
||
Prepaid expenses and other assets, net
|
|
56,828
|
|
|
72,334
|
|
||
Other receivables, net
|
|
98,048
|
|
|
94,488
|
|
||
Investments in unconsolidated entities
|
|
179,249
|
|
|
192,364
|
|
||
Deferred tax assets, net
|
|
105,356
|
|
|
118,138
|
|
||
Property and equipment, net
|
|
38,258
|
|
|
7,112
|
|
||
Intangible assets, net
|
|
1,337
|
|
|
2,130
|
|
||
Goodwill
|
|
66,198
|
|
|
66,198
|
|
||
Total assets
|
|
$
|
4,331,693
|
|
|
$
|
4,325,893
|
|
Liabilities
|
|
|
|
|
||||
Accounts payable
|
|
$
|
124,731
|
|
|
$
|
140,165
|
|
Accrued expenses and other liabilities
|
|
188,681
|
|
|
201,540
|
|
||
Income taxes payable
|
|
—
|
|
|
4,525
|
|
||
Customer deposits
|
|
189,116
|
|
|
132,529
|
|
||
Senior notes, net
|
|
1,241,514
|
|
|
1,239,787
|
|
||
Loans payable and other borrowings
|
|
160,173
|
|
|
139,453
|
|
||
Revolving credit facility borrowings
|
|
—
|
|
|
—
|
|
||
Mortgage warehouse borrowings
|
|
54,457
|
|
|
118,822
|
|
||
Liabilities attributable to real estate not owned
|
|
13,811
|
|
|
2,527
|
|
||
Total liabilities
|
|
1,972,483
|
|
|
1,979,348
|
|
||
COMMITMENTS AND CONTINGENCIES (Note 15)
|
|
|
|
|
||||
Stockholders’ Equity
|
|
|
|
|
||||
Class A common stock, $0.00001 par value, 400,000,000 shares authorized,
114,458,190 and 85,449,253 shares issued, 111,408,931 and 82,399,996 shares outstanding as of September 30, 2018 and December 31, 2017, respectively |
|
1
|
|
|
1
|
|
||
Class B common stock, $0.00001 par value, 200,000,000 shares authorized,
863,434 and 37,179,616 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively |
|
—
|
|
|
—
|
|
||
Preferred stock, $0.00001 par value, 50,000,000 shares authorized, no shares issued and outstanding as of September 30, 2018 and December 31, 2017
|
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
|
1,881,273
|
|
|
1,341,873
|
|
||
Treasury stock at cost, 3,049,257 shares as of September 30, 2018 and December 31, 2017
|
|
(47,622
|
)
|
|
(47,622
|
)
|
||
Retained earnings
|
|
517,780
|
|
|
319,833
|
|
||
Accumulated other comprehensive loss
|
|
(17,968
|
)
|
|
(17,968
|
)
|
||
Total stockholders’ equity attributable to Taylor Morrison Home Corporation
|
|
2,333,464
|
|
|
1,596,117
|
|
||
Non-controlling interests – joint ventures
|
|
4,504
|
|
|
1,663
|
|
||
Non-controlling interests
|
|
21,242
|
|
|
748,765
|
|
||
Total stockholders’ equity
|
|
2,359,210
|
|
|
2,346,545
|
|
||
Total liabilities and stockholders’ equity
|
|
$
|
4,331,693
|
|
|
$
|
4,325,893
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
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2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Home closings revenue, net
|
|
$
|
1,014,168
|
|
|
$
|
886,249
|
|
|
$
|
2,703,692
|
|
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$
|
2,526,830
|
|
Land closings revenue
|
|
5,170
|
|
|
4,299
|
|
|
18,335
|
|
|
11,419
|
|
||||
Financial services revenue
|
|
17,041
|
|
|
17,479
|
|
|
47,513
|
|
|
47,362
|
|
||||
Total revenues
|
|
1,036,379
|
|
|
908,027
|
|
|
2,769,540
|
|
|
2,585,611
|
|
||||
Cost of home closings
|
|
822,950
|
|
|
721,637
|
|
|
2,202,377
|
|
|
2,062,437
|
|
||||
Cost of land closings
|
|
3,979
|
|
|
3,002
|
|
|
14,704
|
|
|
7,869
|
|
||||
Financial services expenses
|
|
10,451
|
|
|
12,070
|
|
|
31,647
|
|
|
30,874
|
|
||||
Total cost of revenues
|
|
837,380
|
|
|
736,709
|
|
|
2,248,728
|
|
|
2,101,180
|
|
||||
Gross margin
|
|
198,999
|
|
|
171,318
|
|
|
520,812
|
|
|
484,431
|
|
||||
Sales, commissions and other marketing costs
|
|
67,504
|
|
|
61,476
|
|
|
185,806
|
|
|
178,609
|
|
||||
General and administrative expenses
|
|
33,016
|
|
|
33,374
|
|
|
101,795
|
|
|
100,396
|
|
||||
Equity in income of unconsolidated entities
|
|
(2,514
|
)
|
|
(2,787
|
)
|
|
(9,777
|
)
|
|
(6,943
|
)
|
||||
Interest income, net
|
|
(670
|
)
|
|
(135
|
)
|
|
(1,289
|
)
|
|
(314
|
)
|
||||
Other expense, net
|
|
798
|
|
|
415
|
|
|
4,889
|
|
|
828
|
|
||||
Income before income taxes
|
|
100,865
|
|
|
78,975
|
|
|
239,388
|
|
|
211,855
|
|
||||
Income tax provision
|
|
6,424
|
|
|
24,282
|
|
|
38,123
|
|
|
65,631
|
|
||||
Net income before allocation to non-controlling interests
|
|
94,441
|
|
|
54,693
|
|
|
201,265
|
|
|
146,224
|
|
||||
Net income attributable to non-controlling interests — joint ventures
|
|
(159
|
)
|
|
(427
|
)
|
|
(428
|
)
|
|
(625
|
)
|
||||
Net income before non-controlling interests
|
|
94,282
|
|
|
54,266
|
|
|
200,837
|
|
|
145,599
|
|
||||
Net income attributable to non-controlling interests
|
|
(714
|
)
|
|
(21,390
|
)
|
|
(4,391
|
)
|
|
(76,810
|
)
|
||||
Net income available to Taylor Morrison Home Corporation
|
|
$
|
93,568
|
|
|
$
|
32,876
|
|
|
$
|
196,446
|
|
|
$
|
68,789
|
|
Earnings per common share
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.84
|
|
|
$
|
0.45
|
|
|
$
|
1.75
|
|
|
$
|
1.21
|
|
Diluted
|
|
$
|
0.83
|
|
|
$
|
0.45
|
|
|
$
|
1.73
|
|
|
$
|
1.21
|
|
Weighted average number of shares of common stock:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
111,396
|
|
|
72,471
|
|
|
112,449
|
|
|
56,791
|
|
||||
Diluted
|
|
113,440
|
|
|
121,183
|
|
|
116,378
|
|
|
120,991
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended
September 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Income before non-controlling interests, net of tax
|
|
$
|
94,441
|
|
|
$
|
54,693
|
|
|
$
|
201,265
|
|
|
$
|
146,224
|
|
Comprehensive income attributable to non-controlling interests — joint ventures
|
|
(159
|
)
|
|
(427
|
)
|
|
(428
|
)
|
|
(625
|
)
|
||||
Comprehensive income attributable to non-controlling interests
|
|
(714
|
)
|
|
(21,390
|
)
|
|
(4,391
|
)
|
|
(76,810
|
)
|
||||
Comprehensive income available to Taylor Morrison Home Corporation
|
|
$
|
93,568
|
|
|
$
|
32,876
|
|
|
$
|
196,446
|
|
|
$
|
68,789
|
|
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
|
Class A
|
|
Class B
|
|
Additional
Paid-in
Capital
|
|
Treasury Stock
|
|
Stockholders' Equity
|
||||||||||||||||||||||||||||||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
Shares
(2)
|
|
Amount
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Non-controlling
Interest - Joint
Venture
|
|
Non-controlling Interests
(1)
|
|
Total
Stockholders’
Equity
|
||||||||||||||||||||||||||||||||
Balance – December 31, 2017
|
|
82,399,996
|
|
|
$
|
1
|
|
|
37,179,616
|
|
|
$
|
—
|
|
|
$
|
1,341,873
|
|
|
3,049,257
|
|
|
$
|
(47,622
|
)
|
|
$
|
319,833
|
|
|
$
|
(17,968
|
)
|
|
$
|
1,663
|
|
|
$
|
748,765
|
|
|
$
|
2,346,545
|
|
|||||||||||
Cumulative-effect adjustment to Retained Earnings, net of tax related to adoption of ASU No. 2014-09 (see Note 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,501
|
|
|
|
|
|
|
|
|
1,501
|
|
||||||||||||||||||||||||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
196,446
|
|
|
—
|
|
|
428
|
|
|
4,391
|
|
|
201,265
|
|
||||||||||||||||||||
Exchange of New TMM Units and corresponding number of Class B Common Stock
|
|
20,487
|
|
|
—
|
|
|
(20,487
|
)
|
|
—
|
|
|
1,293
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,293
|
)
|
|
—
|
|
||||||||||||||||||||
TMHC repurchase and cancellation of New TMM Units from Former Principal Equityholders
|
|
—
|
|
|
—
|
|
|
(7,588,771
|
)
|
|
—
|
|
|
(201,775
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(201,775
|
)
|
||||||||||||||||||||
Exercise of stock options
|
|
118,992
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,887
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,887
|
|
||||||||||||||||||||
Issuance of restricted stock units, net of shares withheld for tax
|
|
162,532
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,498
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,498
|
)
|
|||||||||
Exchange of B shares from public offerings
|
|
28,706,924
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
729,954
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
729,954
|
|
||||||||||||||||||||
Repurchase of New TMM Units from Former Principal Equityholders
|
|
—
|
|
|
—
|
|
|
(28,706,924
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(730,963
|
)
|
|
(730,963
|
)
|
||||||||||||||||||||
Share based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,539
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
342
|
|
|
9,881
|
|
||||||||||||||||||||
Changes in non-controlling interests of consolidated joint ventures
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,413
|
|
|
—
|
|
|
2,413
|
|
||||||||||||||||||||
Balance – September 30, 2018
|
|
111,408,931
|
|
|
$
|
1
|
|
|
863,434
|
|
|
$
|
—
|
|
|
$
|
1,881,273
|
|
|
3,049,257
|
|
|
$
|
(47,622
|
)
|
|
$
|
517,780
|
|
|
$
|
(17,968
|
)
|
|
$
|
4,504
|
|
|
$
|
21,242
|
|
|
$
|
2,359,210
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2018
|
|
2017
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||
Net income before allocation to non-controlling interests
|
|
$
|
201,265
|
|
|
$
|
146,224
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Equity in income of unconsolidated entities
|
|
(9,777
|
)
|
|
(6,943
|
)
|
||
Stock compensation expense
|
|
9,881
|
|
|
10,227
|
|
||
Distributions of earnings from unconsolidated entities
|
|
4,168
|
|
|
4,666
|
|
||
Depreciation and amortization
|
|
17,606
|
|
|
2,994
|
|
||
Debt issuance costs amortization
|
|
2,442
|
|
|
2,864
|
|
||
Contingent consideration
|
|
146
|
|
|
766
|
|
||
Deferred income taxes
|
|
12,782
|
|
|
(9,032
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Real estate inventory and land deposits
|
|
(296,678
|
)
|
|
(243,343
|
)
|
||
Mortgages held for sale, prepaid expenses and other assets
|
|
81,769
|
|
|
141,813
|
|
||
Customer deposits
|
|
56,587
|
|
|
74,031
|
|
||
Accounts payable, accrued expenses and other liabilities
|
|
(19,670
|
)
|
|
4,017
|
|
||
Income taxes payable
|
|
(4,525
|
)
|
|
4,491
|
|
||
Net cash provided by operating activities
|
|
55,996
|
|
|
132,775
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
||||
Purchase of property and equipment
|
|
(14,454
|
)
|
|
(1,843
|
)
|
||
Distributions of capital from unconsolidated entities
|
|
22,271
|
|
|
4,223
|
|
||
Investments of capital into unconsolidated entities
|
|
(3,547
|
)
|
|
(28,854
|
)
|
||
Net cash provided by (used in) investing activities
|
|
4,270
|
|
|
(26,474
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
||||
Increase in loans payable and other borrowings
|
|
27,158
|
|
|
8,644
|
|
||
Repayments of loans payable and other borrowings
|
|
(14,942
|
)
|
|
(11,305
|
)
|
||
Borrowings on mortgage warehouse
|
|
552,908
|
|
|
567,922
|
|
||
Repayment on mortgage warehouse
|
|
(617,273
|
)
|
|
(705,194
|
)
|
||
Payment of contingent consideration
|
|
(265
|
)
|
|
—
|
|
||
Proceeds from stock option exercises
|
|
1,887
|
|
|
4,791
|
|
||
Proceeds from issuance of shares from public offerings
|
|
767,116
|
|
|
882,306
|
|
||
TMHC repurchase and cancellation of New TMM Units from Former Principal Equityholders
|
|
(201,775
|
)
|
|
—
|
|
||
Repurchase of shares from Former Principal Equityholders
|
|
(768,125
|
)
|
|
(884,403
|
)
|
||
Repurchase of common stock, net
|
|
—
|
|
|
(4,098
|
)
|
||
Payment of taxes related to net share settlement of equity awards
|
|
(1,498
|
)
|
|
(307
|
)
|
||
Contributions to (Distributions to) non-controlling interests of consolidated joint ventures, net
|
|
2,413
|
|
|
(292
|
)
|
||
Net cash (used in) financing activities
|
|
(252,396
|
)
|
|
(141,936
|
)
|
||
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
|
|
$
|
(192,130
|
)
|
|
$
|
(35,635
|
)
|
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period
|
|
575,503
|
|
|
301,812
|
|
||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period
|
|
$
|
383,373
|
|
|
$
|
266,177
|
|
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
|
||||
Income taxes paid, net
|
|
$
|
(44,569
|
)
|
|
$
|
(70,172
|
)
|
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:
|
|
|
|
|
||||
Change in loans payable issued to sellers in connection with land purchase contracts
|
|
$
|
53,099
|
|
|
$
|
55,151
|
|
Change in inventory not owned
|
|
$
|
11,284
|
|
|
$
|
(3,145
|
)
|
Change in Prepaid expenses and other assets, net due to adoption of ASU 2014-09
|
|
$
|
(32,004
|
)
|
|
$
|
—
|
|
Change in Property and equipment, net due to adoption of ASU 2014-09
|
|
$
|
32,004
|
|
|
$
|
—
|
|
•
|
Forfeited customer deposits were previously classified as a credit to Other expense/(income), net on the Condensed Consolidated Statement of Operations. Under Topic 606, these are now considered revenue and recorded in Home closings revenue, net as of January 1, 2018. Prior period balances for forfeited customer deposits were not reclassified and are not material to the Condensed Consolidated Financial Statements.
|
•
|
Certain costs related to sales offices and model homes were previously capitalized and presented within Prepaid expenses and other assets, net on the Condensed Consolidated Balance Sheet and amortized through Sales, commissions and other marketing costs on the Condensed Consolidated Statement of Operations. Beginning January 1, 2018, these costs have been reclassified to Property and equipment, net on the Condensed Consolidated Balance Sheet and depreciated through Sales, commissions and other marketing costs on the Condensed Consolidated Statement of Operations. A total of
$32.0 million
of sales office and model homes costs were reclassified from Prepaid expenses and other assets, net to Property and equipment, net as of January 1, 2018. As we elected the modified retrospective approach to account for prior periods, the balance of any capitalized sales office and model home costs required to be expensed under Topic 606 was recorded as an adjustment to beginning retained earnings in 2018 and reflected as an approximate
$1.5 million
cumulative effect adjustment to retained earnings in the Condensed Consolidated Statement of Stockholders' Equity.
|
•
|
Revenue from closings of residential real estate is recognized when closings have occurred, the buyer has made the required minimum down payment, obtained necessary financing, the risks and rewards of ownership are transferred to the buyer, and we have no continuing involvement with the property, which is generally upon the close of escrow. Revenue is reported net of any discounts and incentives.
|
•
|
Revenue from land sales is recognized when a significant down payment is received, title passes and collectability of the receivable is reasonably assured, and we have no continuing involvement with the property, which is generally upon the close of escrow.
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
|
||||||||
Net income available to TMHC – basic
|
|
$
|
93,568
|
|
|
$
|
32,876
|
|
|
$
|
196,446
|
|
|
$
|
68,789
|
|
Net income attributable to non-controlling interest
|
|
714
|
|
|
21,390
|
|
|
4,391
|
|
|
76,810
|
|
||||
Loss fully attributable to public holding company
|
|
100
|
|
|
136
|
|
|
349
|
|
|
288
|
|
||||
Net income – diluted
|
|
$
|
94,382
|
|
|
$
|
54,402
|
|
|
$
|
201,186
|
|
|
$
|
145,887
|
|
Denominator:
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares – basic (Class A)
|
|
111,396
|
|
|
72,471
|
|
|
112,449
|
|
|
56,791
|
|
||||
Weighted average shares – non-controlling interest (Class B)
|
|
863
|
|
|
47,253
|
|
|
2,508
|
|
|
62,842
|
|
||||
Restricted stock units
|
|
904
|
|
|
1,121
|
|
|
1,043
|
|
|
1,026
|
|
||||
Stock Options
|
|
277
|
|
|
338
|
|
|
378
|
|
|
332
|
|
||||
Weighted average shares – diluted
|
|
113,440
|
|
|
121,183
|
|
|
116,378
|
|
|
120,991
|
|
||||
Earnings per common share – basic:
|
|
|
|
|
|
|
|
|
||||||||
Net income available to Taylor Morrison Home Corporation
|
|
$
|
0.84
|
|
|
$
|
0.45
|
|
|
$
|
1.75
|
|
|
$
|
1.21
|
|
Earnings per common share – diluted:
|
|
|
|
|
|
|
|
|
||||||||
Net income available to Taylor Morrison Home Corporation
|
|
$
|
0.83
|
|
|
$
|
0.45
|
|
|
$
|
1.73
|
|
|
$
|
1.21
|
|
|
|
As of
|
||||||
|
|
September 30,
2018 |
|
December 31, 2017
|
||||
Real estate developed and under development
|
|
$
|
2,194,880
|
|
|
$
|
2,130,263
|
|
Real estate held for development or held for sale
(1)
|
|
65,971
|
|
|
76,552
|
|
||
Operating communities
(2)
|
|
899,937
|
|
|
659,398
|
|
||
Capitalized interest
|
|
94,512
|
|
|
90,496
|
|
||
Total owned inventory
|
|
3,255,300
|
|
|
2,956,709
|
|
||
Real estate not owned
|
|
13,811
|
|
|
2,527
|
|
||
Total real estate inventory
|
|
$
|
3,269,111
|
|
|
$
|
2,959,236
|
|
|
|
As of
|
||||||||||||
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||
|
|
Owned Lots
|
|
Book Value of Land
and Development
|
|
Owned Lots
|
|
Book Value of Land
and Development
|
||||||
Raw
|
|
7,362
|
|
|
$
|
286,753
|
|
|
7,703
|
|
|
$
|
338,642
|
|
Partially developed
|
|
7,639
|
|
|
473,725
|
|
|
5,811
|
|
|
543,200
|
|
||
Finished
|
|
12,982
|
|
|
1,500,373
|
|
|
11,644
|
|
|
1,314,243
|
|
||
Long-term strategic assets
|
|
—
|
|
|
—
|
|
|
763
|
|
|
10,730
|
|
||
Total
|
|
27,983
|
|
|
$
|
2,260,851
|
|
|
25,921
|
|
|
$
|
2,206,815
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Interest capitalized - beginning of period
|
|
$
|
95,693
|
|
|
$
|
100,490
|
|
|
$
|
90,496
|
|
|
$
|
102,642
|
|
Interest incurred
|
|
20,164
|
|
|
20,762
|
|
|
59,979
|
|
|
62,187
|
|
||||
Interest amortized to cost of home closings
|
|
(21,345
|
)
|
|
(21,789
|
)
|
|
(55,963
|
)
|
|
(65,366
|
)
|
||||
Interest capitalized - end of period
|
|
$
|
94,512
|
|
|
$
|
99,463
|
|
|
$
|
94,512
|
|
|
$
|
99,463
|
|
|
|
As of
|
||||||
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
Assets:
|
|
|
|
|
||||
Real estate inventory
|
|
$
|
558,871
|
|
|
$
|
627,841
|
|
Other assets
|
|
120,185
|
|
|
138,341
|
|
||
Total assets
|
|
$
|
679,056
|
|
|
$
|
766,182
|
|
Liabilities and owners’ equity:
|
|
|
|
|
||||
Debt
|
|
$
|
173,932
|
|
|
$
|
193,770
|
|
Other liabilities
|
|
16,431
|
|
|
27,556
|
|
||
Total liabilities
|
|
190,363
|
|
|
221,326
|
|
||
Owners’ equity:
|
|
|
|
|
||||
TMHC
|
|
179,249
|
|
|
192,364
|
|
||
Others
|
|
309,444
|
|
|
352,492
|
|
||
Total owners’ equity
|
|
488,693
|
|
|
544,856
|
|
||
Total liabilities and owners’ equity
|
|
$
|
679,056
|
|
|
$
|
766,182
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues
|
|
$
|
95,085
|
|
|
$
|
60,020
|
|
|
$
|
264,624
|
|
|
$
|
147,273
|
|
Costs and expenses
|
|
(84,409
|
)
|
|
(47,505
|
)
|
|
(227,061
|
)
|
|
(118,546
|
)
|
||||
Income of unconsolidated entities
|
|
$
|
10,676
|
|
|
$
|
12,515
|
|
|
$
|
37,563
|
|
|
$
|
28,727
|
|
TMHC’s share in income of unconsolidated entities
|
|
$
|
2,514
|
|
|
$
|
2,787
|
|
|
$
|
9,777
|
|
|
$
|
6,943
|
|
Distributions from unconsolidated entities
|
|
$
|
13,176
|
|
|
$
|
2,098
|
|
|
$
|
26,439
|
|
|
$
|
8,889
|
|
|
|
As of
September 30, 2018 |
|
As of
December 31, 2017 |
||||
Real estate development costs to complete
|
|
$
|
10,428
|
|
|
$
|
14,815
|
|
Compensation and employee benefits
|
|
56,912
|
|
|
72,352
|
|
||
Self-insurance and warranty reserves
|
|
53,408
|
|
|
51,010
|
|
||
Interest payable
|
|
24,516
|
|
|
17,125
|
|
||
Property and sales taxes payable
|
|
17,144
|
|
|
12,294
|
|
||
Other accruals
|
|
26,273
|
|
|
33,944
|
|
||
Total accrued expenses and other liabilities
|
|
$
|
188,681
|
|
|
$
|
201,540
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Reserve - beginning of period
|
|
$
|
53,011
|
|
|
$
|
54,084
|
|
|
$
|
51,010
|
|
|
$
|
50,550
|
|
Additions to reserves
|
|
9,438
|
|
|
6,403
|
|
|
24,763
|
|
|
17,446
|
|
||||
Costs and claims incurred
|
|
(9,592
|
)
|
|
(8,203
|
)
|
|
(22,525
|
)
|
|
(18,131
|
)
|
||||
Change in estimates to existing reserves
|
|
551
|
|
|
(748
|
)
|
|
160
|
|
|
1,671
|
|
||||
Reserve - end of period
|
|
$
|
53,408
|
|
|
$
|
51,536
|
|
|
$
|
53,408
|
|
|
$
|
51,536
|
|
|
|
As of
|
||||||||||||||||||||||
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
|
Principal
|
|
Unamortized Debt Issuance Costs
|
|
Carrying Value
|
|
Principal
|
|
Unamortized Debt Issuance Costs
|
|
Carrying Value
|
||||||||||||
5.25% Senior Notes due 2021, unsecured
|
|
$
|
550,000
|
|
|
$
|
2,994
|
|
|
$
|
547,006
|
|
|
$
|
550,000
|
|
|
$
|
3,892
|
|
|
$
|
546,108
|
|
5.875% Senior Notes due 2023, unsecured
|
|
350,000
|
|
|
2,576
|
|
|
347,424
|
|
|
350,000
|
|
|
3,002
|
|
|
346,998
|
|
||||||
5.625% Senior Notes due 2024, unsecured
|
|
350,000
|
|
|
2,916
|
|
|
347,084
|
|
|
350,000
|
|
|
3,319
|
|
|
346,681
|
|
||||||
Senior Notes subtotal
|
|
1,250,000
|
|
|
8,486
|
|
|
1,241,514
|
|
|
1,250,000
|
|
|
10,213
|
|
|
1,239,787
|
|
||||||
Loans payable and other borrowings
|
|
160,173
|
|
|
—
|
|
|
160,173
|
|
|
139,453
|
|
|
—
|
|
|
139,453
|
|
||||||
Revolving Credit Facility
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Mortgage warehouse borrowings
|
|
54,457
|
|
|
—
|
|
|
54,457
|
|
|
118,822
|
|
|
—
|
|
|
118,822
|
|
||||||
Total Senior Notes and other financing
|
|
$
|
1,464,630
|
|
|
$
|
8,486
|
|
|
$
|
1,456,144
|
|
|
$
|
1,508,275
|
|
|
$
|
10,213
|
|
|
$
|
1,498,062
|
|
|
|
As of September 30, 2018
|
||||||||||||
Facility
|
|
Amount Drawn
|
|
Facility Amount
|
|
Interest Rate
|
|
Expiration Date
|
|
Collateral
(1)
|
||||
Warehouse A
|
|
$
|
1,129
|
|
|
$
|
45,000
|
|
(2)
|
LIBOR + 1.75%
|
|
On Demand
|
|
Mortgage Loans
|
Warehouse B
|
|
16,857
|
|
|
50,000
|
|
|
LIBOR + 2.25%
|
|
On Demand
|
|
Mortgage Loans
|
||
Warehouse C
|
|
36,471
|
|
|
100,000
|
|
|
LIBOR + 2.375%
|
|
On Demand
|
|
Mortgage Loans and Restricted Cash
|
||
Total
|
|
$
|
54,457
|
|
|
$
|
195,000
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
As of December 31, 2017
|
||||||||||||
Facility
|
|
Amount Drawn
|
|
Facility Amount
|
|
Interest Rate
|
|
Expiration Date
|
|
Collateral
(1)
|
||||
Warehouse A
|
|
$
|
12,990
|
|
|
$
|
39,000
|
|
(2)
|
LIBOR + 2.25%
|
|
30 days written notice
|
|
Mortgage Loans
|
Warehouse B
|
|
41,447
|
|
|
85,000
|
|
|
LIBOR + 2.25%
|
|
On Demand
|
|
Mortgage Loans
|
||
Warehouse C
|
|
64,385
|
|
|
125,000
|
|
|
LIBOR + 2.375%
|
|
September 24, 2018
|
|
Mortgage Loans and Restricted Cash
|
||
Total
|
|
$
|
118,822
|
|
|
$
|
249,000
|
|
|
|
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||
(Dollars in thousands)
|
|
Level in Fair
Value Hierarchy
|
|
Carrying
Value
|
|
Estimated
Fair
Value
|
|
Carrying
Value
|
|
Estimated
Fair
Value
|
||||||||
Description:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Mortgage loans held for sale
|
|
2
|
|
$
|
83,751
|
|
|
$
|
83,751
|
|
|
$
|
187,038
|
|
|
$
|
187,038
|
|
Derivative assets, net
|
|
2
|
|
2,329
|
|
|
2,329
|
|
|
1,352
|
|
|
1,352
|
|
||||
Mortgage warehouse borrowings
|
|
2
|
|
54,457
|
|
|
54,457
|
|
|
118,822
|
|
|
118,822
|
|
||||
Loans payable and other borrowings
|
|
2
|
|
160,173
|
|
|
160,173
|
|
|
139,453
|
|
|
139,453
|
|
||||
5.25% Senior Notes due 2021
(1)
|
|
2
|
|
547,006
|
|
|
552,090
|
|
|
546,108
|
|
|
561,000
|
|
||||
5.875% Senior Notes due 2023
(1)
|
|
2
|
|
347,424
|
|
|
352,625
|
|
|
346,998
|
|
|
369,705
|
|
||||
5.625% Senior Notes due 2024
(1)
|
|
2
|
|
347,084
|
|
|
344,750
|
|
|
346,681
|
|
|
366,205
|
|
||||
Revolving Credit Facility
|
|
2
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Contingent consideration liability
(2)
|
|
3
|
|
—
|
|
|
—
|
|
|
5,328
|
|
|
5,328
|
|
(Shares presented in thousands)
|
|
|
|
|||
Closing date
|
Number of shares
|
|
Net sale price per share
|
|||
January 8, 2018
|
11,000
|
|
|
$
|
26.05
|
|
January 17, 2018
(1)
|
19,207
|
|
|
27.14
|
|
|
|
Shares
Outstanding
|
|
Percentage
|
||
Class A Common Stock
|
|
111,408,931
|
|
|
99.2
|
%
|
Class B Common Stock
(1)
|
|
863,434
|
|
|
0.8
|
%
|
Total
|
|
112,272,365
|
|
|
100
|
%
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Restricted stock units
(1)
|
|
$
|
2,673
|
|
|
$
|
2,157
|
|
|
$
|
6,778
|
|
|
$
|
6,348
|
|
Stock options
|
|
918
|
|
|
1,162
|
|
|
3,103
|
|
|
3,308
|
|
||||
New TMM units
(2)
|
|
—
|
|
|
58
|
|
|
—
|
|
|
571
|
|
||||
Total stock compensation
|
|
$
|
3,591
|
|
|
$
|
3,377
|
|
|
$
|
9,881
|
|
|
$
|
10,227
|
|
|
|
Shares
|
|
Weighted Average
Grant Date Fair
Value
|
|||
Balance at December 31, 2017
|
|
1,889,559
|
|
|
$
|
14.84
|
|
Granted
|
|
574,285
|
|
|
24.06
|
|
|
Vested
|
|
(225,106
|
)
|
|
15.31
|
|
|
Forfeited
(1)
|
|
(367,860
|
)
|
|
16.59
|
|
|
Balance at September 30, 2018
|
|
1,870,878
|
|
|
$
|
17.10
|
|
|
|
Shares
|
|
Weighted
Average Exercise
Price Per Share
|
|||
Outstanding at December 31, 2017
|
|
2,854,213
|
|
|
$
|
17.50
|
|
Granted
|
|
721,762
|
|
|
23.86
|
|
|
Exercised
|
|
(118,992
|
)
|
|
15.85
|
|
|
Canceled/Forfeited
|
|
(199,742
|
)
|
|
18.60
|
|
|
Outstanding at September 30, 2018
|
|
3,257,241
|
|
|
$
|
18.88
|
|
Options exercisable at September 30, 2018
|
|
1,535,093
|
|
|
$
|
18.80
|
|
|
|
Class B Shares/New
TMM Units
|
|
Weighted
Average Grant Date
Fair Value
|
|||
Balance at December 31, 2017
|
|
883,921
|
|
|
$
|
5.24
|
|
Exchanges
(1)
|
|
(20,487
|
)
|
|
6.93
|
|
|
Balance at September 30, 2018
|
|
863,434
|
|
|
$
|
5.20
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||
|
|
Total Post-
Retirement
Benefits
Adjustments
|
|
Foreign
Currency
Translation
Adjustments
|
|
Non-controlling
Interest - Former Principal
Equityholders
Reclassification
|
|
Total
|
||||||||
Balance, beginning of period
|
|
$
|
2,082
|
|
|
$
|
(45,205
|
)
|
|
$
|
25,155
|
|
|
$
|
(17,968
|
)
|
Gross amounts reclassified within AOCI
|
|
—
|
|
|
25,155
|
|
|
(25,155
|
)
|
|
—
|
|
||||
Balance, end of period
|
|
$
|
2,082
|
|
|
$
|
(20,050
|
)
|
(1)
|
$
|
—
|
|
|
$
|
(17,968
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2017
|
||||||||||||||
|
|
Total Post-
Retirement Benefits Adjustments |
|
Foreign
Currency Translation Adjustments |
|
Non-controlling
Interest - Former Principal Equityholders Reclassification |
|
Total
|
||||||||
Balance, beginning of period
|
|
$
|
2,061
|
|
|
$
|
(79,927
|
)
|
|
$
|
59,877
|
|
|
$
|
(17,989
|
)
|
Gross amounts reclassified within AOCI
|
|
—
|
|
|
27,968
|
|
|
(27,968
|
)
|
|
—
|
|
||||
Balance, end of period
|
|
$
|
2,061
|
|
|
$
|
(51,959
|
)
|
|
$
|
31,909
|
|
|
$
|
(17,989
|
)
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||||
|
|
East
|
|
Central
|
|
West
|
|
Financial Services
|
|
Corporate
and
Unallocated
|
|
Total
|
||||||||||||
Total revenues
|
|
$
|
393,476
|
|
|
$
|
277,441
|
|
|
$
|
348,421
|
|
|
$
|
17,041
|
|
|
$
|
—
|
|
|
$
|
1,036,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross margin
|
|
70,427
|
|
|
47,715
|
|
|
74,267
|
|
|
6,590
|
|
|
—
|
|
|
198,999
|
|
||||||
Selling, general and administrative expenses
|
|
(32,182
|
)
|
|
(25,612
|
)
|
|
(20,630
|
)
|
|
—
|
|
|
(22,096
|
)
|
|
(100,520
|
)
|
||||||
Equity in income of unconsolidated entities
|
|
137
|
|
|
196
|
|
|
1,309
|
|
|
872
|
|
|
—
|
|
|
2,514
|
|
||||||
Interest and other (expense)/income, net
|
|
(247
|
)
|
|
204
|
|
|
84
|
|
|
—
|
|
|
(169
|
)
|
|
(128
|
)
|
||||||
Income/(loss) before income taxes
|
|
$
|
38,135
|
|
|
$
|
22,503
|
|
|
$
|
55,030
|
|
|
$
|
7,462
|
|
|
$
|
(22,265
|
)
|
|
$
|
100,865
|
|
|
|
Three Months Ended September 30, 2017
|
||||||||||||||||||||||
|
|
East
|
|
Central
|
|
West
|
|
Financial Services
|
|
Corporate
and
Unallocated
|
|
Total
|
||||||||||||
Total revenues
|
|
$
|
312,539
|
|
|
$
|
256,842
|
|
|
$
|
321,167
|
|
|
$
|
17,479
|
|
|
$
|
—
|
|
|
$
|
908,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross margin
|
|
63,188
|
|
|
47,797
|
|
|
54,924
|
|
|
5,409
|
|
|
—
|
|
|
171,318
|
|
||||||
Selling, general and administrative expenses
|
|
(28,469
|
)
|
|
(25,108
|
)
|
|
(19,087
|
)
|
|
—
|
|
|
(22,186
|
)
|
|
(94,850
|
)
|
||||||
Equity in income of unconsolidated entities
|
|
—
|
|
|
693
|
|
|
924
|
|
|
1,170
|
|
|
—
|
|
|
2,787
|
|
||||||
Interest and other (expense)/income, net
|
|
(7
|
)
|
|
(87
|
)
|
|
46
|
|
|
—
|
|
|
(232
|
)
|
|
(280
|
)
|
||||||
Income/(loss) before income taxes
|
|
$
|
34,712
|
|
|
$
|
23,295
|
|
|
$
|
36,807
|
|
|
$
|
6,579
|
|
|
$
|
(22,418
|
)
|
|
$
|
78,975
|
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||
|
|
East
|
|
Central
|
|
West
|
|
Financial
Services
|
|
Corporate
and
Unallocated
|
|
Total
|
||||||||||||
Total revenues
|
|
$
|
1,038,756
|
|
|
$
|
789,665
|
|
|
$
|
893,606
|
|
|
$
|
47,513
|
|
|
$
|
—
|
|
|
$
|
2,769,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross margin
|
|
187,844
|
|
|
141,994
|
|
|
175,108
|
|
|
15,866
|
|
|
—
|
|
|
520,812
|
|
||||||
Selling, general and administrative expenses
|
|
(91,920
|
)
|
|
(74,015
|
)
|
|
(56,256
|
)
|
|
—
|
|
|
(65,410
|
)
|
|
(287,601
|
)
|
||||||
Equity in income of unconsolidated entities
|
|
378
|
|
|
951
|
|
|
3,879
|
|
|
4,569
|
|
|
—
|
|
|
9,777
|
|
||||||
Interest and other (expense)/income, net
|
|
(846
|
)
|
|
(34
|
)
|
|
2
|
|
|
—
|
|
|
(2,722
|
)
|
|
(3,600
|
)
|
||||||
Income/(loss) before income taxes
|
|
$
|
95,456
|
|
|
$
|
68,896
|
|
|
$
|
122,733
|
|
|
$
|
20,435
|
|
|
$
|
(68,132
|
)
|
|
$
|
239,388
|
|
|
|
Nine Months Ended September 30, 2017
|
||||||||||||||||||||||
|
|
East
|
|
Central
|
|
West
|
|
Financial
Services
|
|
Corporate
and
Unallocated
|
|
Total
|
||||||||||||
Total revenues
|
|
$
|
896,258
|
|
|
$
|
730,659
|
|
|
$
|
911,332
|
|
|
$
|
47,362
|
|
|
$
|
—
|
|
|
$
|
2,585,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross margin
|
|
185,534
|
|
|
133,418
|
|
|
148,991
|
|
|
16,488
|
|
|
—
|
|
|
484,431
|
|
||||||
Selling, general and administrative expenses
|
|
(84,975
|
)
|
|
(72,533
|
)
|
|
(56,994
|
)
|
|
—
|
|
|
(64,503
|
)
|
|
(279,005
|
)
|
||||||
Equity in income of unconsolidated entities
|
|
—
|
|
|
751
|
|
|
1,526
|
|
|
4,666
|
|
|
—
|
|
|
6,943
|
|
||||||
Interest and other (expense)/income, net
|
|
(220
|
)
|
|
171
|
|
|
(146
|
)
|
|
—
|
|
|
(319
|
)
|
|
(514
|
)
|
||||||
Income/(loss) before income taxes
|
|
$
|
100,339
|
|
|
$
|
61,807
|
|
|
$
|
93,377
|
|
|
$
|
21,154
|
|
|
$
|
(64,822
|
)
|
|
$
|
211,855
|
|
|
|
As of September 30, 2018
|
||||||||||||||||||||||
|
|
East
|
|
Central
|
|
West
|
|
Financial Services
|
|
Corporate
and
Unallocated
|
|
Total
|
||||||||||||
Real estate inventory and land deposits
|
|
$
|
1,281,339
|
|
|
$
|
982,257
|
|
|
$
|
1,053,370
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,316,966
|
|
Investments in unconsolidated entities
|
|
29,759
|
|
|
35,401
|
|
|
110,074
|
|
|
4,015
|
|
|
—
|
|
|
179,249
|
|
||||||
Other assets
|
|
55,296
|
|
|
117,282
|
|
|
32,569
|
|
|
146,286
|
|
|
484,045
|
|
|
835,478
|
|
||||||
Total assets
|
|
$
|
1,366,394
|
|
|
$
|
1,134,940
|
|
|
$
|
1,196,013
|
|
|
$
|
150,301
|
|
|
$
|
484,045
|
|
|
$
|
4,331,693
|
|
|
|
As of December 31, 2017
|
||||||||||||||||||||||
|
|
East
|
|
Central
|
|
West
|
|
Financial Services
|
|
Corporate
and
Unallocated
|
|
Total
|
||||||||||||
Real estate inventory and land deposits
|
|
$
|
1,150,918
|
|
|
$
|
818,431
|
|
|
$
|
1,039,655
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,009,004
|
|
Investments in unconsolidated entities
|
|
29,316
|
|
|
32,874
|
|
|
126,559
|
|
|
3,615
|
|
|
—
|
|
|
192,364
|
|
||||||
Other assets
|
|
85,753
|
|
|
124,593
|
|
|
53,492
|
|
|
225,641
|
|
|
635,046
|
|
|
1,124,525
|
|
||||||
Total assets
|
|
$
|
1,265,987
|
|
|
$
|
975,898
|
|
|
$
|
1,219,706
|
|
|
$
|
229,256
|
|
|
$
|
635,046
|
|
|
$
|
4,325,893
|
|
|
|
As of
|
||||||||||||||
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||
(Dollars in thousands)
|
|
Fair Value
|
|
Notional Amount
|
|
Fair Value
|
|
Notional Amount
|
||||||||
IRLCs
|
|
$
|
2,011
|
|
|
$
|
136,733
|
|
|
$
|
1,584
|
|
|
$
|
73,817
|
|
MBSs
|
|
318
|
|
|
133,000
|
|
|
(232
|
)
|
|
118,078
|
|
||||
Total
|
|
$
|
2,329
|
|
|
|
|
$
|
1,352
|
|
|
|
East
|
|
Atlanta, Charlotte, Chicago, Orlando, Raleigh, Southwest Florida and Tampa
|
Central
|
|
Austin, Dallas and Houston (both include a Taylor Morrison division and a Darling Homes division), and Denver
|
West
|
|
Bay Area, Phoenix, Sacramento and Southern California
|
Financial Services
|
|
Taylor Morrison Home Funding, LLC (
“
TMHF
”
) and Inspired Title Services, LLC (
“
Inspired Title
”
)
|
•
|
Net income was $94 million with diluted earnings per share of $0.83
|
•
|
Home closings were 2,115, a 15% increase over the prior year quarter
|
•
|
Total revenue was $1,036 million, a 14% increase over the prior year quarter
|
•
|
Sales per outlet were 2.2, a 10% increase over the prior year quarter
|
•
|
Net sales orders were 1,822, a 3% increase over the prior year quarter
|
•
|
Home closings gross margin, inclusive of capitalized interest, was 18.9 percent, a sequential improvement of 90 basis points from the second quarter of 2018
|
|
|
Three Months Ended
September 30, 2018 |
|
Nine Months Ended
September 30, |
||||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Statements of Operations Data:
|
|
|
|
|
|
|
|
|
||||||||
Home closings revenue, net
|
|
$
|
1,014,168
|
|
|
$
|
886,249
|
|
|
$
|
2,703,692
|
|
|
$
|
2,526,830
|
|
Land closings revenue
|
|
5,170
|
|
|
4,299
|
|
|
18,335
|
|
|
11,419
|
|
||||
Financial services revenue
|
|
17,041
|
|
|
17,479
|
|
|
47,513
|
|
|
47,362
|
|
||||
Total revenues
|
|
1,036,379
|
|
|
908,027
|
|
|
2,769,540
|
|
|
2,585,611
|
|
||||
Cost of home closings
|
|
822,950
|
|
|
721,637
|
|
|
2,202,377
|
|
|
2,062,437
|
|
||||
Cost of land closings
|
|
3,979
|
|
|
3,002
|
|
|
14,704
|
|
|
7,869
|
|
||||
Financial services expenses
|
|
10,451
|
|
|
12,070
|
|
|
31,647
|
|
|
30,874
|
|
||||
Gross margin
|
|
198,999
|
|
|
171,318
|
|
|
520,812
|
|
|
484,431
|
|
||||
Sales, commissions and other marketing costs
|
|
67,504
|
|
|
61,476
|
|
|
185,806
|
|
|
178,609
|
|
||||
General and administrative expenses
|
|
33,016
|
|
|
33,374
|
|
|
101,795
|
|
|
100,396
|
|
||||
Equity in income of unconsolidated entities
|
|
(2,514
|
)
|
|
(2,787
|
)
|
|
(9,777
|
)
|
|
(6,943
|
)
|
||||
Interest income, net
|
|
(670
|
)
|
|
(135
|
)
|
|
(1,289
|
)
|
|
(314
|
)
|
||||
Other expense, net
|
|
798
|
|
|
415
|
|
|
4,889
|
|
|
828
|
|
||||
Income before income taxes
|
|
100,865
|
|
|
78,975
|
|
|
239,388
|
|
|
211,855
|
|
||||
Income tax provision
|
|
6,424
|
|
|
24,282
|
|
|
38,123
|
|
|
65,631
|
|
||||
Net income before allocation to non-controlling interests
|
|
94,441
|
|
|
54,693
|
|
|
201,265
|
|
|
146,224
|
|
||||
Net income attributable to non-controlling interests — joint ventures
|
|
(159
|
)
|
|
(427
|
)
|
|
(428
|
)
|
|
(625
|
)
|
||||
Net income before non-controlling interests
|
|
94,282
|
|
|
54,266
|
|
|
200,837
|
|
|
145,599
|
|
||||
Net income from continuing operations attributable to non-controlling interests
|
|
(714
|
)
|
|
(21,390
|
)
|
|
(4,391
|
)
|
|
(76,810
|
)
|
||||
Net income available to Taylor Morrison Home Corporation
|
|
$
|
93,568
|
|
|
$
|
32,876
|
|
|
$
|
196,446
|
|
|
$
|
68,789
|
|
Home closings gross margin
|
|
18.9
|
%
|
|
18.6
|
%
|
|
18.5
|
%
|
|
18.4
|
%
|
||||
Sales, commissions and other marketing costs as a percentage of home closings revenue
|
|
6.7
|
%
|
|
6.9
|
%
|
|
6.9
|
%
|
|
7.1
|
%
|
||||
General and administrative expenses as a percentage of home closings revenue
|
|
3.3
|
%
|
|
3.8
|
%
|
|
3.8
|
%
|
|
4.0
|
%
|
||||
Average sales price per home closed
|
|
$
|
480
|
|
|
$
|
481
|
|
|
$
|
478
|
|
|
$
|
474
|
|
|
|
Three Months Ended September 30,
|
|||||||
|
|
2018
|
|
2017
|
|
Change
|
|||
East
|
|
109
|
|
|
130
|
|
|
(16.2
|
)%
|
Central
|
|
118
|
|
|
118
|
|
|
—
|
|
West
|
|
48
|
|
|
45
|
|
|
6.7
|
|
Total
|
|
275
|
|
|
293
|
|
|
(6.1
|
)%
|
|
|
Three Months Ended September 30,
|
|||||||||||||||||||||||||||||
|
|
Net Sales Orders
(1)
|
|
Sales Value
(1)
|
|
Average Selling Price
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
|||||||||||||
East
|
|
710
|
|
|
777
|
|
|
(8.6
|
)%
|
|
$
|
289,200
|
|
|
$
|
302,795
|
|
|
(4.5
|
)%
|
|
$
|
407
|
|
|
$
|
390
|
|
|
4.4
|
%
|
Central
|
|
617
|
|
|
521
|
|
|
18.4
|
|
|
298,111
|
|
|
247,084
|
|
|
20.7
|
|
|
483
|
|
|
474
|
|
|
1.9
|
|
||||
West
|
|
495
|
|
|
463
|
|
|
6.9
|
|
|
306,004
|
|
|
300,815
|
|
|
1.7
|
|
|
618
|
|
|
650
|
|
|
(4.9
|
)
|
||||
Total
|
|
1,822
|
|
|
1,761
|
|
|
3.5
|
%
|
|
$
|
893,315
|
|
|
$
|
850,694
|
|
|
5.0
|
%
|
|
$
|
490
|
|
|
$
|
483
|
|
|
1.4
|
%
|
|
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||
|
|
Net Sales Orders
(1)
|
|
Sales Value
(1)
|
|
Average Selling Price
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
|||||||||||||
East
|
|
2,604
|
|
|
2,923
|
|
|
(10.9
|
)%
|
|
$
|
1,096,008
|
|
|
$
|
1,132,839
|
|
|
(3.3
|
)%
|
|
$
|
421
|
|
|
$
|
388
|
|
|
8.5
|
%
|
Central
|
|
2,204
|
|
|
1,826
|
|
|
20.7
|
|
|
1,064,852
|
|
|
864,797
|
|
|
23.1
|
|
|
483
|
|
|
474
|
|
|
1.9
|
|
||||
West
|
|
1,799
|
|
|
1,813
|
|
|
(0.8
|
)
|
|
1,128,763
|
|
|
1,088,661
|
|
|
3.7
|
|
|
627
|
|
|
600
|
|
|
4.5
|
|
||||
Total
|
|
6,607
|
|
|
6,562
|
|
|
0.7
|
%
|
|
$
|
3,289,623
|
|
|
$
|
3,086,297
|
|
|
6.6
|
%
|
|
$
|
498
|
|
|
$
|
470
|
|
|
6.0
|
%
|
|
|
Cancellation Rate
(1)
|
||||||||||
|
|
Three Months Ended September 30,
|
|
Nine Months Ended
September 30, |
||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
East
|
|
10.8
|
%
|
|
11.8
|
%
|
|
10.6
|
%
|
|
10.1
|
%
|
Central
|
|
13.6
|
|
|
14.4
|
|
|
11.1
|
|
|
12.2
|
|
West
|
|
17.5
|
|
|
11.1
|
|
|
11.6
|
|
|
11.6
|
|
Total Company
|
|
13.6
|
%
|
|
12.4
|
%
|
|
11.0
|
%
|
|
11.1
|
%
|
|
|
As of September 30,
|
|||||||||||||||||||||||||||||
|
|
Sold Homes in Backlog
(1)
|
|
Sales Value
|
|
Average Selling Price
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
|||||||||||||
East
|
|
1,589
|
|
|
1,905
|
|
|
(16.6
|
)%
|
|
$
|
754,666
|
|
|
$
|
774,001
|
|
|
(2.5
|
)%
|
|
$
|
475
|
|
|
$
|
406
|
|
|
17.0
|
%
|
Central
|
|
1,610
|
|
|
1,272
|
|
|
26.6
|
|
|
814,173
|
|
|
653,415
|
|
|
24.6
|
|
|
506
|
|
|
514
|
|
|
(1.6
|
)
|
||||
West
|
|
1,250
|
|
|
1,182
|
|
|
5.8
|
|
|
771,135
|
|
|
697,790
|
|
|
10.5
|
|
|
617
|
|
|
590
|
|
|
4.6
|
|
||||
Total
|
|
4,449
|
|
|
4,359
|
|
|
2.1
|
%
|
|
$
|
2,339,974
|
|
|
$
|
2,125,206
|
|
|
10.1
|
%
|
|
$
|
526
|
|
|
$
|
488
|
|
|
7.8
|
%
|
|
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||
|
|
Homes Closed
|
|
Home Closings Revenue, Net
|
|
Average Selling Price
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
|||||||||||||
East
|
|
2,528
|
|
|
2,238
|
|
|
13.0
|
%
|
|
$
|
1,033,553
|
|
|
$
|
891,740
|
|
|
15.9
|
%
|
|
$
|
409
|
|
|
$
|
398
|
|
|
2.8
|
%
|
Central
|
|
1,645
|
|
|
1,512
|
|
|
8.8
|
|
|
780,682
|
|
|
723,758
|
|
|
7.9
|
|
|
475
|
|
|
479
|
|
|
(0.8
|
)
|
||||
West
|
|
1,481
|
|
|
1,585
|
|
|
(6.6
|
)
|
|
889,457
|
|
|
911,332
|
|
|
(2.4
|
)
|
|
601
|
|
|
575
|
|
|
4.5
|
|
||||
Total
|
|
5,654
|
|
|
5,335
|
|
|
6.0
|
%
|
|
$
|
2,703,692
|
|
|
$
|
2,526,830
|
|
|
7.0
|
%
|
|
$
|
478
|
|
|
$
|
474
|
|
|
0.8
|
%
|
|
|
Three Months Ended September 30,
|
||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
Change
|
||||||
East
|
|
$
|
709
|
|
|
$
|
1,013
|
|
|
$
|
(304
|
)
|
Central
|
|
4,461
|
|
|
3,286
|
|
|
1,175
|
|
|||
West
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
$
|
5,170
|
|
|
$
|
4,299
|
|
|
$
|
871
|
|
|
|
Nine Months Ended September 30,
|
||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
Change
|
||||||
East
|
|
$
|
5,201
|
|
|
$
|
4,518
|
|
|
$
|
683
|
|
Central
|
|
8,984
|
|
|
6,901
|
|
|
2,083
|
|
|||
West
|
|
4,150
|
|
|
—
|
|
|
4,150
|
|
|||
Total
|
|
$
|
18,335
|
|
|
$
|
11,419
|
|
|
$
|
6,916
|
|
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||||||||||
|
|
East
|
|
Central
|
|
West
|
|
Consolidated
|
||||||||||||||||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||
Home closings revenue, net
|
|
$
|
392,767
|
|
|
$
|
311,526
|
|
|
$
|
272,980
|
|
|
$
|
253,556
|
|
|
$
|
348,421
|
|
|
$
|
321,167
|
|
|
$
|
1,014,168
|
|
|
$
|
886,249
|
|
Cost of home closings
|
|
322,134
|
|
|
248,455
|
|
|
226,662
|
|
|
206,939
|
|
|
274,154
|
|
|
266,243
|
|
|
822,950
|
|
|
721,637
|
|
||||||||
Home closings gross margin
|
|
70,633
|
|
|
63,071
|
|
|
46,318
|
|
|
46,617
|
|
|
74,267
|
|
|
54,924
|
|
|
191,218
|
|
|
164,612
|
|
||||||||
Home closings gross margin %
|
|
18.0
|
%
|
|
20.2
|
%
|
|
17.0
|
%
|
|
18.4
|
%
|
|
21.3
|
%
|
|
17.1
|
%
|
|
18.9
|
%
|
|
18.6
|
%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||||
|
|
East
|
|
Central
|
|
West
|
|
Consolidated
|
||||||||||||||||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||
Home closings revenue, net
|
|
$
|
1,033,553
|
|
|
$
|
891,740
|
|
|
$
|
780,682
|
|
|
$
|
723,758
|
|
|
$
|
889,457
|
|
|
$
|
911,332
|
|
|
$
|
2,703,692
|
|
|
$
|
2,526,830
|
|
Cost of home closings
|
|
845,883
|
|
|
707,614
|
|
|
641,566
|
|
|
592,482
|
|
|
714,928
|
|
|
762,341
|
|
|
2,202,377
|
|
|
2,062,437
|
|
||||||||
Home closings gross margin
|
|
187,670
|
|
|
184,126
|
|
|
139,116
|
|
|
131,276
|
|
|
174,529
|
|
|
148,991
|
|
|
501,315
|
|
|
464,393
|
|
||||||||
Home closings gross margin %
|
|
18.2
|
%
|
|
20.6
|
%
|
|
17.8
|
%
|
|
18.1
|
%
|
|
19.6
|
%
|
|
16.3
|
%
|
|
18.5
|
%
|
|
18.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||||||||
(In thousands, except the number of loan originations)
|
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
Mortgage operations revenue
|
|
$
|
14,363
|
|
|
$
|
15,554
|
|
|
(7.7
|
)%
|
|
$
|
40,341
|
|
|
$
|
41,960
|
|
|
(3.9
|
)%
|
Mortgage operations revenue - Other
|
|
549
|
|
|
430
|
|
|
27.7
|
|
|
1,702
|
|
|
1,192
|
|
|
42.8
|
|
||||
Title services revenue
|
|
2,129
|
|
|
1,495
|
|
|
42.4
|
|
|
5,470
|
|
|
4,210
|
|
|
29.9
|
|
||||
Total financial services revenue
|
|
17,041
|
|
|
17,479
|
|
|
(2.5
|
)%
|
|
47,513
|
|
|
47,362
|
|
|
0.3
|
%
|
||||
Financial services equity in income of unconsolidated entities
|
|
872
|
|
|
1,170
|
|
|
(25.5
|
)
|
|
4,569
|
|
|
4,666
|
|
|
(2.1
|
)
|
||||
Total revenue
|
|
17,913
|
|
|
18,649
|
|
|
(3.9
|
)
|
|
52,082
|
|
|
52,028
|
|
|
0.1
|
|
||||
Financial services expenses
|
|
10,451
|
|
|
12,070
|
|
|
(13.4
|
)
|
|
31,647
|
|
|
30,874
|
|
|
2.5
|
|
||||
Financial services income before income taxes
|
|
$
|
7,462
|
|
|
$
|
6,579
|
|
|
13.4
|
%
|
|
$
|
20,435
|
|
|
$
|
21,154
|
|
|
(3.4
|
)
|
Total originations:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans
|
|
1,158
|
|
|
1,102
|
|
|
5.1
|
%
|
|
3,129
|
|
|
3,162
|
|
|
(1.0
|
)%
|
||||
Principal
|
|
$
|
401,093
|
|
|
$
|
374,147
|
|
|
7.2
|
%
|
|
$
|
1,081,858
|
|
|
$
|
1,075,043
|
|
|
0.6
|
%
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Supplemental data:
|
|
|
|
|
|
|
|
|
||||
Average FICO score
|
|
748
|
|
|
745
|
|
|
747
|
|
|
744
|
|
Funded origination breakdown:
|
|
|
|
|
|
|
|
|
||||
Government (FHA,VA,USDA)
|
|
15
|
%
|
|
17
|
%
|
|
16
|
%
|
|
18
|
%
|
Other agency
|
|
71
|
%
|
|
66
|
%
|
|
70
|
%
|
|
66
|
%
|
Total agency
|
|
86
|
%
|
|
83
|
%
|
|
86
|
%
|
|
84
|
%
|
Non-agency
|
|
14
|
%
|
|
17
|
%
|
|
14
|
%
|
|
16
|
%
|
Total funded originations
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Borrowings under our Revolving Credit Facility;
|
•
|
Our various series of Senior Notes (as defined below);
|
•
|
Mortgage warehouse facilities;
|
•
|
Project-level financing (including non-recourse loans);
|
•
|
Performance, payment and completion surety bonds, and letters of credit; and
|
•
|
Cash generated from operations;
|
•
|
Additional debt facilities, as needed (for example, our 364-Day Credit Agreement).
|
•
|
Cash generated from operations; and
|
•
|
Borrowings under our Revolving Credit Facility.
|
|
|
As of
|
||||||
(Dollars in thousands)
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
Total Cash, excluding Restricted Cash
|
|
$
|
382,054
|
|
|
$
|
573,925
|
|
|
|
|
|
|
||||
Total Revolving Credit Facility
|
|
600,000
|
|
|
500,000
|
|
||
Letters of Credit Outstanding
|
|
(53,677
|
)
|
|
(47,126
|
)
|
||
Revolving Credit Facility Borrowings Outstanding
|
|
—
|
|
|
—
|
|
||
Revolving Credit Facility Availability
|
|
546,323
|
|
|
452,874
|
|
||
|
|
|
|
|
||||
Total Liquidity
(1)
|
|
$
|
928,377
|
|
|
$
|
1,026,799
|
|
(Dollars in thousands)
|
|
Date Issued
|
|
Principal
Amount
|
|
Initial Offering
Price
|
|
Interest Rate
|
|
Original Net
Proceeds
|
|
Original Debt
Issuance
Cost
|
||||||||
Senior Notes due 2021
|
|
April 16, 2013
|
|
550,000
|
|
|
100.0
|
%
|
|
5.250
|
%
|
|
541,700
|
|
|
8,300
|
|
|||
Senior Notes due 2023
|
|
April 16, 2015
|
|
350,000
|
|
|
100.0
|
%
|
|
5.875
|
%
|
|
345,500
|
|
|
4,500
|
|
|||
Senior Notes due 2024
|
|
March 5, 2014
|
|
350,000
|
|
|
100.0
|
%
|
|
5.625
|
%
|
|
345,300
|
|
|
4,700
|
|
|||
Total
(1)
|
|
|
|
$
|
1,250,000
|
|
|
|
|
|
|
$
|
1,232,500
|
|
|
$
|
17,500
|
|
(Dollars in thousands)
|
|
As of September 30, 2018
|
||||||||||||
Facility
|
|
Amount Drawn
|
|
Facility Amount
|
|
Interest Rate
|
|
Expiration Date
|
|
Collateral
(1)
|
||||
Warehouse A
|
|
$
|
1,129
|
|
|
$
|
45,000
|
|
(2)
|
LIBOR + 1.75%
|
|
On Demand
|
|
Mortgage Loans
|
Warehouse B
|
|
16,857
|
|
|
50,000
|
|
|
LIBOR + 2.25%
|
|
On Demand
|
|
Mortgage Loans
|
||
Warehouse C
|
|
36,471
|
|
|
100,000
|
|
|
LIBOR + 2.375%
|
|
On Demand
|
|
Mortgage Loans and Restricted Cash
|
||
Total
|
|
$
|
54,457
|
|
|
$
|
195,000
|
|
|
|
|
|
|
|
|
|
As of
|
||||||
(Dollars in thousands)
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
Letters of credit
(1)
|
|
$
|
53,677
|
|
|
$
|
47,126
|
|
Surety bonds
|
|
264,795
|
|
|
284,617
|
|
||
Total outstanding letters of credit and surety bonds
|
|
$
|
318,472
|
|
|
$
|
331,743
|
|
•
|
the timing of the introduction and start of construction of new projects;
|
•
|
the timing of project sales;
|
•
|
the timing of closings of homes, lots and parcels;
|
•
|
the timing of receipt of regulatory approvals for development and construction;
|
•
|
the condition of the real estate market and general economic conditions in the areas in which we operate;
|
•
|
mix of homes closed;
|
•
|
construction timetables;
|
•
|
the prevailing interest rates and the availability of financing, both for us and for the purchasers of our homes;
|
•
|
the cost and availability of materials and labor; and
|
•
|
weather conditions in the markets in which we build.
|
|
|
Expected Maturity Date
|
|
Fair
Value
|
||||||||||||||||||||||||||||
(In millions, except percentage data)
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
Thereafter
|
|
Total
|
|
|||||||||||||||||
Fixed Rate Debt
|
|
$
|
39.1
|
|
|
$
|
66.0
|
|
|
$
|
27.5
|
|
|
$
|
556.7
|
|
|
$
|
2.4
|
|
|
$
|
718.4
|
|
|
$
|
1,410.1
|
|
|
$
|
1,409.6
|
|
Weighted average interest rate
(1)
|
|
3.5
|
%
|
|
3.5
|
%
|
|
3.5
|
%
|
|
5.5
|
%
|
|
3.5
|
%
|
|
5.5
|
%
|
|
5.3
|
%
|
|
|
|||||||||
Variable Rate Debt
(2)
|
|
$
|
54.5
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
$
|
54.5
|
|
|
$
|
54.5
|
|
|||||
Weighted average interest rate
|
|
4.1
|
%
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4.1
|
%
|
|
|
|
|
|
|
|
|
|
|
Exhibit
No.
|
|
Description
|
|
|
|
2.1
†
|
|
Agreement and Plan of Merger, dated June 7, 2018, by and among Taylor Morrison Home II Corporation, Taylor Morrison Communities, Inc., Thor Merger Sub, Inc. and AV Homes, Inc. (incorporated by reference to Exhibit 2.1 to Taylor Morrison’s Current Report on Form 8-K, filed with the SEC on June 7, 2018).
|
|
|
|
2.2
|
|
Agreement and Plan of Merger, dated as of October 26, 2018, by and among Taylor Morrison Home Corporation, Taylor Morrison Home II Corporation and Second Half 2018 Mergerco Inc. (incorporated herein by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K (File No. 001-35873) filed on October 26, 2018).
|
|
|
|
3.2
|
|
Amended and Restated Certificate of Incorporation. (incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-35873) filed on October 26, 2018).
|
|
|
|
3.3
|
|
Certificate of Amendment to the Amended and Restated Certificate of Incorporation. (incorporated herein by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K (File No. 001-35873) filed on October 26, 2018).
|
|
|
|
3.4
|
|
Amendment to the Amended and Restated By-laws. (incorporated herein by reference to Exhibit 3.4 to the Company’s Current Report on Form 8-K (File No. 001-35873) filed on October 26, 2018).
|
|
|
|
|
|
|
10.4*
|
|
Third Amendment to the Amended and Restated Agreement of Exempted Limited Partnership of TMM Holdings II Limited Partnership, dated September 26, 2018.
|
|
|
|
|
|
|
31.1*
|
|
Certification of Sheryl D. Palmer, Chief Executive Officer, pursuant to Section 302 of the Sarbanes–Oxley Act of 2002.
|
|
|
|
31.2*
|
|
Certification of C. David Cone, Chief Financial Officer, pursuant to Section 302 of the Sarbanes–Oxley Act of 2002.
|
|
|
|
32.1**
|
|
Certification of Sheryl D. Palmer, Chief Executive Officer, pursuant to Section 906 of the Sarbanes–Oxley Act of 2002.
|
|
|
|
32.2**
|
|
Certification of C. David Cone, Chief Financial Officer, pursuant to Section 906 of the Sarbanes–Oxley Act of 2002.
|
|
|
|
101.INS
|
|
XBRL Instance Document.
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
Exhibit
No. |
|
Description
|
|
|
|
2.1
†
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
32.1*
*
|
|
|
|
|
|
32.2*
*
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document.
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
TAYLOR MORRISON HOME CORPORATION
|
|
|
|
Registrant
|
DATE:
|
October 31, 2018
|
|
|
|
|
|
/s/ Sheryl D. Palmer
|
|
|
|
Sheryl D. Palmer
|
|
|
|
Chairman of the Board of Directors and Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ C. David Cone
|
|
|
|
C. David Cone
|
|
|
|
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
|
|
|
|
|
|
|
/s/ Joseph Terracciano
|
|
|
|
Joseph Terracciano
|
|
|
|
Chief Accounting Officer
(Principal Accounting Officer)
|
A.
|
The Partnership is governed by an amended and restated agreement of exempted limited partnership dated 9 April 2013, as previously amended by the amendments thereto, dated March 15, 2015 and January 11, 2018, respectively (the
“
Agreement
”
)
.
|
B.
|
TMHC transferred its Common Units to Taylor Morrison Homes Corporation, a Delaware corporation and wholly owned subsidiary of TMHC (“
HoldCo
”), which then transferred such Common Units to Second Half 2018 Mergerco Inc., a Delaware corporation and wholly owned subsidiary of HoldCo (“
MergerCo
”).
|
C.
|
The General Partner desires to amend the Agreement in accordance with clause 16.1 of the Agreement as set forth in this Amendment, with effect from the date hereof.
|
D.
|
Capitalized terms used but not defined herein shall have the meanings given to such terms in the Agreement.
|
1.
|
This Amendment shall be effective in amending the Agreement on the terms of this Amendment from the date hereof.
|
2.
|
The Agreement shall be amended by adding the following definitions to Section 1 of the Agreement, in alphabetical order:
|
3.
|
The Agreement shall be amended by amending and restating Sections 3.5(b) and 3.5(c) in their entirety to read as follows:
|
4.
|
The Agreement shall be amended by amending and restating Sections 3.8(b) in its entirety to read as follows:
|
5.
|
The Agreement shall be amended by amending and restating Section 3.9 in its entirety to read as follows:
|
6.
|
The Agreement shall be amended by amending and restating Section 5.1(d) in its entirety to read as follows:
|
7.
|
The Agreement shall be amended by amending and restating Section 9.4(a) in its entirety to read as follows:
|
8.
|
Except as amended and modified hereby, the terms and provisions of the Agreement remain in full force and effect. Any reference herein to the Agreement and any future reference to the Agreement shall be deemed to be a reference to the Agreement as amended by this Amendment and as the same may, from time to time, be hereafter further amended or modified.
|
9.
|
This Amendment is made pursuant to and is governed by the laws of the Cayman Islands.
|
|
|
|
|
|
GENERAL PARTNER
|
|
|
|
|
|
|
|
||
EXECUTED as a Deed by
|
|
)
|
|
|
TMM Holdings II GP, ULC
|
|
)
|
|
|
acting by:
|
|
)
|
|
/s/ Darrell C. Sherman
|
|
|
)
|
|
Name: Darrell C. Sherman
|
in the presence of:
|
|
)
|
|
Title: Executive Vice President, Chief Legal
|
|
|
)
|
|
Officer and Secretary
|
/s/ Benjamin Aronovitch
|
|
)
|
|
|
Benjamin Aronovitch
|
|
)
|
|
|
Witness
|
|
|
|
|
By:
|
|
/s/ Sheryl D. Palmer
|
|
|
Sheryl D. Palmer
|
|
|
Chairman of the Board of Directors and Chief Executive Officer
|
|
|
Taylor Morrison Home Corporation
|
By:
|
|
/s/ C. David Cone
|
|
|
C. David Cone
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
Taylor Morrison Home Corporation
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
October 31, 2018
|
|
/s/ Sheryl D. Palmer
|
|
|
Sheryl D. Palmer
|
|
|
Chairman of the Board of Directors and Chief Executive Officer
|
|
|
Taylor Morrison Home Corporation
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
October 31, 2018
|
|
/s/ C. David Cone
|
|
|
C. David Cone
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
Taylor Morrison Home Corporation
|