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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
|
|
Outstanding as of May 1, 2019
|
Class A common stock, $0.00001 par value
|
|
107,368,829
|
|
|
Page
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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March 31,
2019 |
|
December 31,
2018 |
||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
171,982
|
|
|
$
|
329,645
|
|
Restricted cash
|
|
1,824
|
|
|
2,214
|
|
||
Total cash, cash equivalents, and restricted cash
|
|
173,806
|
|
|
331,859
|
|
||
Owned inventory
|
|
4,101,283
|
|
|
3,965,306
|
|
||
Real estate not owned
|
|
14,893
|
|
|
15,259
|
|
||
Total real estate inventory
|
|
4,116,176
|
|
|
3,980,565
|
|
||
Land deposits
|
|
55,063
|
|
|
57,929
|
|
||
Mortgage loans held for sale
|
|
103,705
|
|
|
181,897
|
|
||
Derivative assets
|
|
3,470
|
|
|
1,838
|
|
||
Operating lease right of use assets
|
|
29,378
|
|
|
—
|
|
||
Prepaid expenses and other assets, net
|
|
94,459
|
|
|
98,225
|
|
||
Other receivables, net
|
|
92,585
|
|
|
86,587
|
|
||
Investments in unconsolidated entities
|
|
138,334
|
|
|
140,541
|
|
||
Deferred tax assets, net
|
|
145,076
|
|
|
145,076
|
|
||
Property and equipment, net
|
|
85,275
|
|
|
86,736
|
|
||
Intangible assets, net
|
|
961
|
|
|
1,072
|
|
||
Goodwill
|
|
152,116
|
|
|
152,116
|
|
||
Total assets
|
|
$
|
5,190,404
|
|
|
$
|
5,264,441
|
|
Liabilities
|
|
|
|
|
||||
Accounts payable
|
|
$
|
143,082
|
|
|
$
|
151,586
|
|
Accrued expenses and other liabilities
|
|
250,277
|
|
|
266,686
|
|
||
Operating lease liabilities
|
|
32,497
|
|
|
—
|
|
||
Customer deposits
|
|
176,902
|
|
|
165,432
|
|
||
Estimated development liability
|
|
37,104
|
|
|
37,147
|
|
||
Senior notes, net
|
|
1,653,459
|
|
|
1,653,746
|
|
||
Loans payable and other borrowings
|
|
192,764
|
|
|
225,497
|
|
||
Revolving credit facility borrowings
|
|
235,000
|
|
|
200,000
|
|
||
Mortgage warehouse borrowings
|
|
59,114
|
|
|
130,353
|
|
||
Liabilities attributable to real estate not owned
|
|
14,893
|
|
|
15,259
|
|
||
Total liabilities
|
|
2,795,092
|
|
|
2,845,706
|
|
||
COMMITMENTS AND CONTINGENCIES (Note 16)
|
|
|
|
|
||||
Stockholders’ Equity
|
|
|
|
|
||||
Class A common stock, $0.00001 par value, 400,000,000 shares authorized,
124,997,685 and 124,519,942 shares issued, 109,066,720 and 112,965,856 shares outstanding as of March 31, 2019 and December 31, 2018, respectively |
|
1
|
|
|
1
|
|
||
Class B common stock, $0.00001 par value, 200,000,000 shares authorized. Zero shares issued and outstanding as of March 31, 2019 and December 31, 2018.
|
|
—
|
|
|
—
|
|
||
Preferred stock, $0.00001 par value, 50,000,000 shares authorized, no shares issued and outstanding as of March 31, 2019 and December 31, 2018
|
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
|
2,073,542
|
|
|
2,071,579
|
|
||
Treasury stock at cost, 15,930,963 and 11,554,084 shares as of March 31, 2019 and December 31, 2018, respectively
|
|
(263,926
|
)
|
|
(186,087
|
)
|
||
Retained earnings
|
|
578,829
|
|
|
527,698
|
|
||
Accumulated other comprehensive income
|
|
2,285
|
|
|
2,001
|
|
||
Total stockholders’ equity attributable to Taylor Morrison Home Corporation
|
|
2,390,731
|
|
|
2,415,192
|
|
||
Non-controlling interests – joint ventures
|
|
4,581
|
|
|
3,543
|
|
||
Total stockholders’ equity
|
|
2,395,312
|
|
|
2,418,735
|
|
||
Total liabilities and stockholders’ equity
|
|
$
|
5,190,404
|
|
|
$
|
5,264,441
|
|
|
|
Three Months Ended
March 31, |
||||||
|
|
2019
|
|
2018
|
||||
Home closings revenue, net
|
|
$
|
899,881
|
|
|
$
|
732,959
|
|
Land closings revenue
|
|
4,113
|
|
|
5,168
|
|
||
Financial services revenue
|
|
16,044
|
|
|
14,206
|
|
||
Amenity and other revenue
|
|
5,054
|
|
|
—
|
|
||
Total revenue
|
|
925,092
|
|
|
752,333
|
|
||
Cost of home closings
|
|
735,797
|
|
|
594,906
|
|
||
Cost of land closings
|
|
2,692
|
|
|
4,281
|
|
||
Financial services expenses
|
|
10,721
|
|
|
10,044
|
|
||
Amenity and other expenses
|
|
3,842
|
|
|
—
|
|
||
Total cost of revenue
|
|
753,052
|
|
|
609,231
|
|
||
Gross margin
|
|
172,040
|
|
|
143,102
|
|
||
Sales, commissions and other marketing costs
|
|
67,429
|
|
|
53,698
|
|
||
General and administrative expenses
|
|
36,454
|
|
|
33,318
|
|
||
Equity in income of unconsolidated entities
|
|
(2,319
|
)
|
|
(3,246
|
)
|
||
Interest income, net
|
|
(333
|
)
|
|
(343
|
)
|
||
Other (income)/expense, net
|
|
(1,392
|
)
|
|
437
|
|
||
Transaction expenses
|
|
4,129
|
|
|
—
|
|
||
Income before income taxes
|
|
68,072
|
|
|
59,238
|
|
||
Income tax provision
|
|
16,791
|
|
|
11,706
|
|
||
Net income before allocation to non-controlling interests
|
|
51,281
|
|
|
47,532
|
|
||
Net income attributable to non-controlling interests — joint ventures
|
|
(150
|
)
|
|
(129
|
)
|
||
Net income before non-controlling interests
|
|
51,131
|
|
|
47,403
|
|
||
Net income attributable to non-controlling interests
|
|
—
|
|
|
(2,470
|
)
|
||
Net income available to Taylor Morrison Home Corporation
|
|
$
|
51,131
|
|
|
$
|
44,933
|
|
Earnings per common share
|
|
|
|
|
||||
Basic
|
|
$
|
0.46
|
|
|
$
|
0.42
|
|
Diluted
|
|
$
|
0.46
|
|
|
$
|
0.41
|
|
Weighted average number of shares of common stock:
|
|
|
|
|
||||
Basic
|
|
110,512
|
|
|
107,195
|
|
||
Diluted
|
|
111,668
|
|
|
114,767
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Income before non-controlling interests, net of tax
|
|
$
|
51,281
|
|
|
$
|
47,532
|
|
Post-retirement benefits adjustments, net of tax
|
|
(284
|
)
|
|
—
|
|
||
Comprehensive income
|
|
50,997
|
|
|
47,532
|
|
||
Comprehensive income attributable to non-controlling interests — joint ventures
|
|
(150
|
)
|
|
(129
|
)
|
||
Comprehensive income attributable to non-controlling interests
|
|
—
|
|
|
(2,470
|
)
|
||
Comprehensive income available to Taylor Morrison Home Corporation
|
|
$
|
50,847
|
|
|
$
|
44,933
|
|
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
|
Class A
|
|
Class B
|
|
Additional
Paid-in
Capital
|
|
Treasury Stock
|
|
Stockholders' Equity
|
||||||||||||||||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income
|
|
Non-controlling
Interest - Joint
Venture
|
|
|
Total
Stockholders’
Equity
|
|||||||||||||||||||
Balance – December 31, 2018
|
|
112,965,856
|
|
|
$
|
1
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
2,071,579
|
|
|
11,554,084
|
|
|
$
|
(186,087
|
)
|
|
$
|
527,698
|
|
|
$
|
2,001
|
|
|
$
|
3,543
|
|
|
|
$
|
2,418,735
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51,131
|
|
|
—
|
|
|
150
|
|
|
|
51,281
|
|
||||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
284
|
|
|
—
|
|
|
|
284
|
|
||||||||
Exercise of stock options
|
|
3,176
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
39
|
|
||||||||
Issuance of restricted stock units, net of shares withheld for tax
|
|
474,567
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,493
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(1,493
|
)
|
||||||||
Repurchase of Class A common stock
|
|
(4,376,879
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,376,879
|
|
|
(77,839
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(77,839
|
)
|
||||||||
Stock Compensation Expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,417
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
3,417
|
|
||||||||
Distributions to non-controlling interests of consolidated joint ventures
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
|
(17
|
)
|
||||||||
Changes in non-controlling interests of consolidated joint ventures
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
905
|
|
|
|
905
|
|
||||||||
Balance – March 31, 2019
|
|
109,066,720
|
|
|
$
|
1
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
2,073,542
|
|
|
15,930,963
|
|
|
$
|
(263,926
|
)
|
|
$
|
578,829
|
|
|
$
|
2,285
|
|
|
$
|
4,581
|
|
|
|
$
|
2,395,312
|
|
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
|
|
Class A
|
|
Class B
|
|
Additional
Paid-in
Capital
|
|
Treasury Stock
|
|
Stockholders' Equity
|
|||||||||||||||||||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Non-controlling
Interest - Joint
Venture
|
|
Non-controlling Interests
|
|
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)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,983
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,983
|
|
|||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44,933
|
|
|
—
|
|
|
129
|
|
|
2,470
|
|
|
47,532
|
|
|||||||||
Exchange of New TMM Units and corresponding number of Class B Common Stock
|
|
15,000
|
|
|
—
|
|
|
(15,000
|
)
|
|
—
|
|
|
1,265
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,265
|
)
|
|
—
|
|
|||||||||
TMHC repurchase and cancellation of New TMM Units from Former Principal Equityholders
|
|
—
|
|
|
—
|
|
|
(7,588,771
|
)
|
|
—
|
|
|
(201,775
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(201,775
|
)
|
|||||||||
Exercise of stock options
|
|
37,060
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
580
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
580
|
|
|||||||||
Issuance of restricted stock units
|
|
149,217
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,482
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,482
|
)
|
|||||||||
Exchange of B shares from public offerings
|
|
28,706,924
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
730,112
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
730,112
|
|
|||||||||
Repurchase of New TMM Units from Former Principal Equityholders
|
|
—
|
|
|
—
|
|
|
(28,706,924
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(730,963
|
)
|
|
(730,963
|
)
|
|||||||||
Share based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,359
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
184
|
|
|
3,543
|
|
|||||||||
Changes in non-controlling interests of consolidated joint ventures
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(445
|
)
|
|
—
|
|
|
(445
|
)
|
|||||||||
Balance – March 31, 2018
|
|
111,308,197
|
|
|
$
|
1
|
|
|
868,921
|
|
|
$
|
—
|
|
|
$
|
1,873,932
|
|
|
3,049,257
|
|
|
$
|
(47,622
|
)
|
|
$
|
366,749
|
|
|
$
|
(17,968
|
)
|
|
$
|
1,347
|
|
|
$
|
19,191
|
|
|
$
|
2,195,630
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||
Net income before allocation to non-controlling interests
|
|
$
|
51,281
|
|
|
$
|
47,532
|
|
Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
|
|
|
|
|
||||
Equity in income of unconsolidated entities
|
|
(2,319
|
)
|
|
(3,246
|
)
|
||
Stock compensation expense
|
|
3,417
|
|
|
3,543
|
|
||
Distributions of earnings from unconsolidated entities
|
|
2,435
|
|
|
541
|
|
||
Depreciation and amortization
|
|
7,765
|
|
|
5,015
|
|
||
Operating lease expense
|
|
2,065
|
|
|
—
|
|
||
Debt issuance costs/premium amortization
|
|
(71
|
)
|
|
878
|
|
||
Contingent consideration
|
|
—
|
|
|
146
|
|
||
Deferred income taxes
|
|
—
|
|
|
106
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Real estate inventory and land deposits
|
|
(133,111
|
)
|
|
(120,004
|
)
|
||
Mortgages held for sale, prepaid expenses and other assets
|
|
42,670
|
|
|
78,862
|
|
||
Customer deposits
|
|
11,470
|
|
|
37,294
|
|
||
Accounts payable, accrued expenses and other liabilities
|
|
(13,896
|
)
|
|
(59,494
|
)
|
||
Income taxes payable
|
|
—
|
|
|
9,532
|
|
||
Net cash (used in)/provided by operating activities
|
|
(28,294
|
)
|
|
705
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
||||
Purchase of property and equipment
|
|
(6,194
|
)
|
|
(2,695
|
)
|
||
Distributions of capital from unconsolidated entities
|
|
3,180
|
|
|
492
|
|
||
Investments of capital into unconsolidated entities
|
|
(1,089
|
)
|
|
(2,118
|
)
|
||
Net cash used in investing activities
|
|
(4,103
|
)
|
|
(4,321
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
||||
Increase in loans payable and other borrowings
|
|
2,066
|
|
|
1,823
|
|
||
Repayments of loans payable and other borrowings
|
|
(13,078
|
)
|
|
(2,884
|
)
|
||
Borrowings on revolving credit facility
|
|
35,000
|
|
|
—
|
|
||
Borrowings on mortgage warehouse
|
|
159,522
|
|
|
145,925
|
|
||
Repayment on mortgage warehouse
|
|
(230,761
|
)
|
|
(223,225
|
)
|
||
Payment of contingent consideration
|
|
—
|
|
|
(265
|
)
|
||
Proceeds from stock option exercises
|
|
39
|
|
|
580
|
|
||
Proceeds from issuance of shares from public offerings
|
|
—
|
|
|
767,116
|
|
||
TMHC repurchase and cancellation of New TMM Units from Former Principal Equityholders
|
|
—
|
|
|
(201,775
|
)
|
||
Repurchase of shares from Former Principal Equityholders
|
|
—
|
|
|
(767,967
|
)
|
||
Repurchase of common stock, net
|
|
(77,839
|
)
|
|
—
|
|
||
Payment of taxes related to net share settlement of equity awards
|
|
(1,493
|
)
|
|
(1,482
|
)
|
||
Changes to non-controlling interests of consolidated joint ventures, net
|
|
888
|
|
|
(445
|
)
|
||
Net cash used in financing activities
|
|
(125,656
|
)
|
|
(282,599
|
)
|
||
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
|
$
|
(158,053
|
)
|
|
$
|
(286,215
|
)
|
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period
|
|
331,859
|
|
|
575,503
|
|
||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period
|
|
$
|
173,806
|
|
|
$
|
289,288
|
|
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
|
||||
Income taxes paid, net
|
|
$
|
(1
|
)
|
|
$
|
(2,069
|
)
|
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:
|
|
|
|
|
||||
Change in loans payable issued to sellers in connection with land purchase contracts
|
|
$
|
11,120
|
|
|
$
|
7,829
|
|
Change in inventory not owned
|
|
$
|
(366
|
)
|
|
$
|
(517
|
)
|
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
|
|
Beginning Operating lease right of use assets due to adoption of ASU 2016-02
|
|
$
|
27,384
|
|
|
$
|
—
|
|
Beginning Operating lease right of use liabilities due to adoption of ASU 2016-02
|
|
$
|
30,331
|
|
|
$
|
—
|
|
Years Ending December 31,
|
Lease
Payments(1)
|
||
2019(1)
|
$
|
7,314
|
|
2020
|
7,906
|
|
|
2021
|
7,050
|
|
|
2022
|
5,728
|
|
|
2023
|
4,701
|
|
|
Thereafter
|
9,069
|
|
|
Total lease payments
|
$
|
41,768
|
|
Less: Interest
|
$
|
9,271
|
|
Present value of lease liabilities.
|
$
|
32,497
|
|
•
|
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.
|
(Dollars in thousands)
|
AV Homes
|
||
Acquisition Date
|
October 2, 2018
|
||
Assets acquired
|
|
||
Real estate inventory
|
$
|
778,174
|
|
Prepaid expenses and other assets(1)
|
106,612
|
|
|
Deferred tax assets, net
|
71,411
|
|
|
Property and equipment
|
50,996
|
|
|
Goodwill(2)
|
85,918
|
|
|
Total assets
|
$
|
1,093,111
|
|
|
|
||
Less liabilities assumed
|
|
||
Accrued expenses and other liabilities
|
$
|
94,308
|
|
Customer deposits
|
14,130
|
|
|
Estimated development liability
|
37,230
|
|
|
Senior notes, net
|
412,520
|
|
|
Net assets acquired
|
$
|
534,923
|
|
|
As Adjusted for the three months ended March 31,
|
||||||
(Dollars in thousands except per share data)
|
2019
(As reported)
|
|
2018
(Pro forma)
|
||||
Total revenues
|
$
|
925,092
|
|
|
$
|
904,341
|
|
|
|
|
|
||||
Net income
|
$
|
51,281
|
|
|
$
|
45,189
|
|
Net income attributable to non-controlling interests — joint ventures
|
(150
|
)
|
|
(129
|
)
|
||
Net income attributable to non-controlling interest - Former Principal Equityholders
|
—
|
|
|
(2,470
|
)
|
||
Net income available to TMHC - Basic
|
$
|
51,131
|
|
|
$
|
42,590
|
|
Net income attributable to non-controlling interest - Former Principal Equityholders
|
—
|
|
|
2,470
|
|
||
Loss fully attributable to public holding company
|
—
|
|
|
165
|
|
||
Net income - Diluted
|
$
|
51,131
|
|
|
$
|
45,225
|
|
|
|
|
|
||||
Weighted average shares - Basic
|
110,512
|
|
|
116,319
|
|
||
Weighted average shares - Diluted
|
111,668
|
|
|
123,890
|
|
||
|
|
|
|
||||
Earnings per share - Basic
|
$
|
0.46
|
|
|
$
|
0.37
|
|
Earnings per share - Diluted
|
$
|
0.46
|
|
|
$
|
0.37
|
|
|
|
Three months ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Numerator:
|
|
|
|
|
||||
Net income available to TMHC – basic
|
|
$
|
51,131
|
|
|
$
|
44,933
|
|
Net income attributable to non-controlling interest
|
|
—
|
|
|
2,470
|
|
||
Loss fully attributable to public holding company
|
|
—
|
|
|
165
|
|
||
Net income – diluted
|
|
$
|
51,131
|
|
|
$
|
47,568
|
|
Denominator:
|
|
|
|
|
||||
Weighted average shares – basic
|
|
110,512
|
|
|
107,195
|
|
||
Weighted average shares – non-controlling interest
|
|
—
|
|
|
5,849
|
|
||
Restricted stock units
|
|
922
|
|
|
1,126
|
|
||
Stock Options
|
|
234
|
|
|
597
|
|
||
Weighted average shares – diluted
|
|
111,668
|
|
|
114,767
|
|
||
Earnings per common share – basic:
|
|
|
|
|
||||
Net income available to Taylor Morrison Home Corporation
|
|
$
|
0.46
|
|
|
$
|
0.42
|
|
Earnings per common share – diluted:
|
|
|
|
|
||||
Net income available to Taylor Morrison Home Corporation
|
|
$
|
0.46
|
|
|
$
|
0.41
|
|
|
|
As of
|
||||||
|
|
March 31,
2019 |
|
December 31, 2018
|
||||
Real estate developed and under development
|
|
$
|
2,857,408
|
|
|
$
|
2,833,875
|
|
Real estate held for development or held for sale (1)
|
|
72,118
|
|
|
61,415
|
|
||
Operating communities (2)
|
|
1,064,839
|
|
|
973,985
|
|
||
Capitalized interest
|
|
106,918
|
|
|
96,031
|
|
||
Total owned inventory
|
|
4,101,283
|
|
|
3,965,306
|
|
||
Real estate not owned
|
|
14,893
|
|
|
15,259
|
|
||
Total real estate inventory
|
|
$
|
4,116,176
|
|
|
$
|
3,980,565
|
|
|
|
As of
|
||||||||||||
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||
|
|
Owned Lots
|
|
Book Value of Land
and Development
|
|
Owned Lots
|
|
Book Value of Land
and Development
|
||||||
Raw
|
|
8,524
|
|
|
$
|
367,988
|
|
|
9,653
|
|
|
$
|
461,387
|
|
Partially developed
|
|
13,492
|
|
|
867,855
|
|
|
12,036
|
|
|
756,376
|
|
||
Finished
|
|
21,621
|
|
|
1,693,683
|
|
|
21,975
|
|
|
1,677,527
|
|
||
Total
|
|
43,637
|
|
|
$
|
2,929,526
|
|
|
43,664
|
|
|
$
|
2,895,290
|
|
|
|
Three Months Ended
March 31, |
||||||
|
|
2019
|
|
2018
|
||||
Interest capitalized - beginning of period
|
|
$
|
96,031
|
|
|
$
|
90,496
|
|
Interest incurred
|
|
27,792
|
|
|
19,686
|
|
||
Interest amortized to cost of home closings
|
|
(16,905
|
)
|
|
(14,848
|
)
|
||
Interest capitalized - end of period
|
|
$
|
106,918
|
|
|
$
|
95,334
|
|
|
|
As of
|
||||||
|
|
March 31,
2019 |
|
December 31,
2018 |
||||
Assets:
|
|
|
|
|
||||
Real estate inventory
|
|
$
|
452,964
|
|
|
$
|
508,795
|
|
Other assets
|
|
138,806
|
|
|
125,436
|
|
||
Total assets
|
|
$
|
591,770
|
|
|
$
|
634,231
|
|
Liabilities and owners’ equity:
|
|
|
|
|
||||
Debt
|
|
$
|
193,901
|
|
|
$
|
176,564
|
|
Other liabilities
|
|
16,178
|
|
|
16,061
|
|
||
Total liabilities
|
|
210,079
|
|
|
192,625
|
|
||
Owners’ equity:
|
|
|
|
|
||||
TMHC
|
|
138,334
|
|
|
140,541
|
|
||
Others
|
|
243,357
|
|
|
301,075
|
|
||
Total owners’ equity
|
|
381,691
|
|
|
441,616
|
|
||
Total liabilities and owners’ equity
|
|
$
|
591,770
|
|
|
$
|
634,241
|
|
|
|
Three Months Ended
March 31, |
||||||
|
|
2019
|
|
2018
|
||||
Revenues
|
|
$
|
61,016
|
|
|
$
|
59,074
|
|
Costs and expenses
|
|
(52,820
|
)
|
|
(47,332
|
)
|
||
Income of unconsolidated entities
|
|
$
|
8,196
|
|
|
$
|
11,742
|
|
TMHC’s share in income of unconsolidated entities
|
|
$
|
2,319
|
|
|
$
|
3,246
|
|
Distributions to TMHC from unconsolidated entities
|
|
$
|
5,615
|
|
|
$
|
1,033
|
|
|
|
As of
March 31, 2019 |
|
As of
December 31, 2018 |
||||
Real estate development costs to complete
|
|
$
|
15,044
|
|
|
$
|
16,591
|
|
Compensation and employee benefits
|
|
38,663
|
|
|
73,955
|
|
||
Self-insurance and warranty reserves
|
|
87,887
|
|
|
93,790
|
|
||
Interest payable
|
|
35,526
|
|
|
21,385
|
|
||
Property and sales taxes payable
|
|
12,193
|
|
|
14,861
|
|
||
Other accruals
|
|
60,964
|
|
|
46,104
|
|
||
Total accrued expenses and other liabilities
|
|
$
|
250,277
|
|
|
$
|
266,686
|
|
|
|
Three Months Ended
March 31, |
||||||
|
|
2019
|
|
2018
|
||||
Reserve - beginning of period
|
|
$
|
93,790
|
|
|
$
|
51,010
|
|
Additions to reserves
|
|
7,848
|
|
|
5,043
|
|
||
Costs and claims incurred
|
|
(14,595
|
)
|
|
(5,060
|
)
|
||
Change in estimates to existing reserves
|
|
844
|
|
|
(657
|
)
|
||
Reserve - end of period
|
|
$
|
87,887
|
|
|
$
|
50,336
|
|
|
|
As of
|
||||||||||||||||||||||
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
|
Principal
|
|
Unamortized Debt Issuance (Costs) / Premium
|
|
Carrying Value
|
|
Principal
|
|
Unamortized Debt Issuance (Costs) / Premium
|
|
Carrying Value
|
||||||||||||
5.25% Senior Notes due 2021
|
|
$
|
550,000
|
|
|
$
|
(2,395
|
)
|
|
$
|
547,605
|
|
|
$
|
550,000
|
|
|
$
|
(2,695
|
)
|
|
$
|
547,305
|
|
6.625% Senior Notes due 2022
|
|
400,000
|
|
|
10,794
|
|
|
410,794
|
|
|
400,000
|
|
|
11,656
|
|
|
411,656
|
|
||||||
5.875% Senior Notes due 2023
|
|
350,000
|
|
|
(2,293
|
)
|
|
347,707
|
|
|
350,000
|
|
|
(2,434
|
)
|
|
347,566
|
|
||||||
5.625% Senior Notes due 2024
|
|
350,000
|
|
|
(2,647
|
)
|
|
347,353
|
|
|
350,000
|
|
|
(2,781
|
)
|
|
347,219
|
|
||||||
Senior Notes subtotal
|
|
1,650,000
|
|
|
3,459
|
|
|
1,653,459
|
|
|
1,650,000
|
|
|
3,746
|
|
|
1,653,746
|
|
||||||
Loans payable and other borrowings
|
|
192,764
|
|
|
—
|
|
|
192,764
|
|
|
225,497
|
|
|
—
|
|
|
225,497
|
|
||||||
Revolving Credit Facility
|
|
35,000
|
|
|
—
|
|
|
35,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
364-Day Credit Agreement
|
|
200,000
|
|
|
—
|
|
|
200,000
|
|
|
200,000
|
|
|
—
|
|
|
200,000
|
|
||||||
Mortgage warehouse borrowings
|
|
59,114
|
|
|
—
|
|
|
59,114
|
|
|
130,353
|
|
|
—
|
|
|
130,353
|
|
||||||
Total Senior Notes and other financing
|
|
$
|
2,136,878
|
|
|
$
|
3,459
|
|
|
$
|
2,140,337
|
|
|
$
|
2,205,850
|
|
|
$
|
3,746
|
|
|
$
|
2,209,596
|
|
|
|
As of March 31, 2019
|
||||||||||||
Facility
|
|
Amount Drawn
|
|
Facility Amount
|
|
Interest Rate
|
|
Expiration Date
|
|
Collateral (1)
|
||||
Warehouse A
|
|
$
|
12,271
|
|
|
$
|
45,000
|
|
|
LIBOR + 1.75%
|
|
On Demand
|
|
Mortgage Loans
|
Warehouse B
|
|
9,181
|
|
|
50,000
|
|
|
LIBOR + 1.75%
|
|
On Demand
|
|
Mortgage Loans
|
||
Warehouse C
|
|
37,662
|
|
|
75,000
|
|
|
LIBOR + 1.95%
|
|
On Demand
|
|
Mortgage Loans and Restricted Cash
|
||
Total
|
|
$
|
59,114
|
|
|
$
|
170,000
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
As of December 31, 2018
|
||||||||||||
Facility
|
|
Amount Drawn
|
|
Facility Amount
|
|
Interest Rate
|
|
Expiration Date
|
|
Collateral (1)
|
||||
Warehouse A
|
|
$
|
29,484
|
|
|
$
|
45,000
|
|
|
LIBOR + 1.75%
|
|
On Demand
|
|
Mortgage Loans
|
Warehouse B
|
|
38,164
|
|
|
85,000
|
|
|
LIBOR + 1.75%
|
|
On Demand
|
|
Mortgage Loans
|
||
Warehouse C
|
|
62,705
|
|
|
100,000
|
|
|
LIBOR + 1.95%
|
|
On Demand
|
|
Mortgage Loans and Restricted Cash
|
||
Total
|
|
$
|
130,353
|
|
|
$
|
230,000
|
|
|
|
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
(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
|
|
$
|
103,705
|
|
|
$
|
103,705
|
|
|
$
|
181,897
|
|
|
$
|
181,897
|
|
Derivative assets, net
|
|
2
|
|
2,488
|
|
|
2,488
|
|
|
1,099
|
|
|
1,099
|
|
||||
Mortgage warehouse borrowings
|
|
2
|
|
59,114
|
|
|
59,114
|
|
|
130,353
|
|
|
130,353
|
|
||||
Loans payable and other borrowings
|
|
2
|
|
192,764
|
|
|
192,764
|
|
|
225,497
|
|
|
225,497
|
|
||||
5.25% Senior Notes due 2021 (1)
|
|
2
|
|
547,605
|
|
|
549,505
|
|
|
547,304
|
|
|
544,500
|
|
||||
6.625% Senior Notes due 2022 (2)
|
|
2
|
|
410,794
|
|
|
414,520
|
|
|
411,656
|
|
|
400,520
|
|
||||
5.875% Senior Notes due 2023 (1)
|
|
2
|
|
347,707
|
|
|
356,125
|
|
|
347,566
|
|
|
337,750
|
|
||||
5.625% Senior Notes due 2024 (1)
|
|
2
|
|
347,353
|
|
|
345,520
|
|
|
347,219
|
|
|
332,500
|
|
||||
Revolving Credit Facility
|
|
2
|
|
35,000
|
|
|
35,000
|
|
|
—
|
|
|
—
|
|
||||
364-Day Credit Agreement
|
|
2
|
|
200,000
|
|
|
200,000
|
|
|
200,000
|
|
|
200,000
|
|
(Dollars in thousands)
|
|
|
For the Year Ended December 31,
|
||
Description:
|
Level in
Fair Value Hierarchy |
|
2018
|
||
Inventories
|
3
|
|
$
|
5,545
|
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2019
|
|
2018(1)
|
||||
Amount available for repurchase — beginning of period
|
|
$
|
57,437
|
|
|
$
|
95,902
|
|
Additional amount authorized for repurchase
|
|
100,000
|
|
|
100,000
|
|
||
Amount repurchased
|
|
(77,839
|
)
|
|
(100,000
|
)
|
||
Amount available for repurchase — end of period
|
|
$
|
79,598
|
|
|
$
|
95,902
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, |
||||||
|
|
2019
|
|
2018
|
||||
Restricted stock units (1)
|
|
$
|
2,514
|
|
|
$
|
2,302
|
|
Stock options
|
|
903
|
|
|
1,241
|
|
||
Total stock compensation
|
|
$
|
3,417
|
|
|
$
|
3,543
|
|
|
|
Shares
|
|
Weighted Average
Grant Date Fair
Value
|
|||
Balance at December 31, 2018
|
|
1,925,364
|
|
|
$
|
16.49
|
|
Granted
|
|
670,100
|
|
|
18.34
|
|
|
Vested
|
|
(789,643
|
)
|
|
13.16
|
|
|
Forfeited (1)
|
|
(4,082
|
)
|
|
18.56
|
|
|
Balance at March 31, 2019
|
|
1,801,739
|
|
|
$
|
18.74
|
|
|
|
Shares
|
|
Weighted
Average Exercise
Price Per Share
|
|||
Outstanding at December 31, 2018
|
|
3,239,995
|
|
|
$
|
18.87
|
|
Granted
|
|
980,536
|
|
|
18.06
|
|
|
Exercised
|
|
(3,176
|
)
|
|
12.12
|
|
|
Canceled/Forfeited
|
|
(10,248
|
)
|
|
22.61
|
|
|
Outstanding at March 31, 2019
|
|
4,207,107
|
|
|
$
|
18.68
|
|
Options exercisable at March 31, 2019
|
|
2,161,078
|
|
|
$
|
18.48
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||
|
|
Total Post-
Retirement
Benefits
Adjustments
|
|
Foreign
Currency
Translation
Adjustments
|
|
Non-controlling
Interest - Former Principal
Equityholders
Reclassification
|
|
Total
|
||||||||
Balance, beginning of period
|
|
$
|
2,001
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,001
|
|
Other comprehensive income before reclassifications
|
|
284
|
|
|
—
|
|
|
—
|
|
|
284
|
|
||||
Other comprehensive income, net of tax
|
|
$
|
284
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
284
|
|
Balance, end of period
|
|
$
|
2,285
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,285
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 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
|
)
|
|
$
|
—
|
|
|
$
|
(17,968
|
)
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||||||
|
|
East
|
|
Central
|
|
West
|
|
Financial Services
|
|
Corporate
and
Unallocated
|
|
Total
|
||||||||||||
Total revenues
|
|
$
|
354,952
|
|
|
$
|
254,947
|
|
|
$
|
299,149
|
|
|
$
|
16,044
|
|
|
$
|
—
|
|
|
$
|
925,092
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross margin
|
|
61,176
|
|
|
42,344
|
|
|
63,197
|
|
|
5,323
|
|
|
—
|
|
|
172,040
|
|
||||||
Selling, general and administrative expenses
|
|
(35,559
|
)
|
|
(26,264
|
)
|
|
(20,564
|
)
|
|
—
|
|
|
(21,496
|
)
|
|
(103,883
|
)
|
||||||
Equity in (loss)/income of unconsolidated entities
|
|
—
|
|
|
(89
|
)
|
|
821
|
|
|
1,409
|
|
|
178
|
|
|
2,319
|
|
||||||
Interest and other (expense)/income, net
|
|
(1,613
|
)
|
|
(807
|
)
|
|
(389
|
)
|
|
—
|
|
|
405
|
|
|
(2,404
|
)
|
||||||
Income/(loss) before income taxes
|
|
$
|
24,004
|
|
|
$
|
15,184
|
|
|
$
|
43,065
|
|
|
$
|
6,732
|
|
|
$
|
(20,913
|
)
|
|
$
|
68,072
|
|
|
|
Three Months Ended March 31, 2018
|
||||||||||||||||||||||
|
|
East
|
|
Central
|
|
West
|
|
Financial Services
|
|
Corporate
and
Unallocated
|
|
Total
|
||||||||||||
Total revenues
|
|
$
|
284,807
|
|
|
$
|
214,113
|
|
|
$
|
239,207
|
|
|
$
|
14,206
|
|
|
$
|
—
|
|
|
$
|
752,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross margin
|
|
52,289
|
|
|
40,627
|
|
|
46,024
|
|
|
4,162
|
|
|
—
|
|
|
143,102
|
|
||||||
Selling, general and administrative expenses
|
|
(28,634
|
)
|
|
(22,280
|
)
|
|
(15,565
|
)
|
|
—
|
|
|
(20,537
|
)
|
|
(87,016
|
)
|
||||||
Equity in income of unconsolidated entities
|
|
111
|
|
|
381
|
|
|
1,095
|
|
|
1,659
|
|
|
—
|
|
|
3,246
|
|
||||||
Interest and other (expense)/income, net
|
|
(478
|
)
|
|
(108
|
)
|
|
20
|
|
|
—
|
|
|
472
|
|
|
(94
|
)
|
||||||
Income/(loss) before income taxes
|
|
$
|
23,288
|
|
|
$
|
18,620
|
|
|
$
|
31,574
|
|
|
$
|
5,821
|
|
|
$
|
(20,065
|
)
|
|
$
|
59,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2019
|
||||||||||||||||||||||
|
|
East
|
|
Central
|
|
West
|
|
Financial Services
|
|
Corporate
and
Unallocated
|
|
Total
|
||||||||||||
Real estate inventory and land deposits
|
|
$
|
1,928,199
|
|
|
$
|
1,057,565
|
|
|
$
|
1,185,475
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,171,239
|
|
Investments in unconsolidated entities
|
|
—
|
|
|
35,472
|
|
|
98,517
|
|
|
4,015
|
|
|
330
|
|
|
138,334
|
|
||||||
Other assets
|
|
147,094
|
|
|
131,130
|
|
|
68,444
|
|
|
175,576
|
|
|
358,587
|
|
|
880,831
|
|
||||||
Total assets
|
|
$
|
2,075,293
|
|
|
$
|
1,224,167
|
|
|
$
|
1,352,436
|
|
|
$
|
179,591
|
|
|
$
|
358,917
|
|
|
$
|
5,190,404
|
|
|
|
As of December 31, 2018
|
||||||||||||||||||||||
|
|
East
|
|
Central
|
|
West
|
|
Financial Services
|
|
Corporate
and
Unallocated
|
|
Total
|
||||||||||||
Real estate inventory and land deposits
|
|
$
|
1,862,756
|
|
|
$
|
1,011,659
|
|
|
$
|
1,164,079
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,038,494
|
|
Investments in unconsolidated entities
|
|
—
|
|
|
35,476
|
|
|
100,693
|
|
|
4,015
|
|
|
357
|
|
|
140,541
|
|
||||||
Other assets
|
|
162,339
|
|
|
118,187
|
|
|
55,433
|
|
|
236,291
|
|
|
513,156
|
|
|
1,085,406
|
|
||||||
Total assets
|
|
$
|
2,025,095
|
|
|
$
|
1,165,322
|
|
|
$
|
1,320,205
|
|
|
$
|
240,306
|
|
|
$
|
513,513
|
|
|
$
|
5,264,441
|
|
|
|
As of
|
||||||||||||||
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
(Dollars in thousands)
|
|
Fair Value
|
|
Notional Amount
|
|
Fair Value
|
|
Notional Amount
|
||||||||
IRLCs
|
|
$
|
3,470
|
|
|
$
|
164,871
|
|
|
$
|
1,838
|
|
|
$
|
75,090
|
|
MBSs
|
|
(982
|
)
|
|
189,000
|
|
|
(739
|
)
|
|
118,000
|
|
||||
Total
|
|
$
|
2,488
|
|
|
|
|
$
|
1,099
|
|
|
|
East
|
|
Atlanta, Charlotte, Chicago, Jacksonville, Orlando, Raleigh, Southwest Florida, and Tampa
|
Central
|
|
Austin, Dallas, Denver, and Houston
|
West
|
|
Bay Area, Phoenix, Sacramento and Southern California
|
Financial Services
|
|
TMHF and Inspired Title
|
•
|
Net sales orders were 2,615, a 7% increase over the prior year
|
•
|
Home closings were 1,938, a 25% increase over the prior year
|
•
|
Total revenue was $925 million, a 23% increase over the prior year
|
•
|
GAAP home closings gross margin was 18.2%
|
•
|
SG&A as a percent of homebuilding revenue was 11.5%, compared to 11.9% during Q1 2018
|
•
|
Net income was $51 million with diluted earnings per share of $0.46
|
|
|
Three Months Ended
March 31, 2019 |
||||||
(Dollars in thousands)
|
|
2019
|
|
2018
|
||||
Statements of Operations Data:
|
|
|
|
|
||||
Home closings revenue, net
|
|
$
|
899,881
|
|
|
$
|
732,959
|
|
Land closings revenue
|
|
4,113
|
|
|
5,168
|
|
||
Financial services revenue
|
|
16,044
|
|
|
14,206
|
|
||
Amenity and other revenue
|
|
5,054
|
|
|
—
|
|
||
Total revenues
|
|
925,092
|
|
|
752,333
|
|
||
Cost of home closings
|
|
735,797
|
|
|
594,906
|
|
||
Cost of land closings
|
|
2,692
|
|
|
4,281
|
|
||
Financial services expenses
|
|
10,721
|
|
|
10,044
|
|
||
Amenity and Other Expense
|
|
3,842
|
|
|
—
|
|
||
Gross margin
|
|
172,040
|
|
|
143,102
|
|
||
Sales, commissions and other marketing costs
|
|
67,429
|
|
|
53,698
|
|
||
General and administrative expenses
|
|
36,454
|
|
|
33,318
|
|
||
Equity in income of unconsolidated entities
|
|
(2,319
|
)
|
|
(3,246
|
)
|
||
Interest income, net
|
|
(333
|
)
|
|
(343
|
)
|
||
Other (income)/expense, net
|
|
(1,392
|
)
|
|
437
|
|
||
Transaction expenses
|
|
4,129
|
|
|
—
|
|
||
Income before income taxes
|
|
68,072
|
|
|
59,238
|
|
||
Income tax provision
|
|
16,791
|
|
|
11,706
|
|
||
Net income before allocation to non-controlling interests
|
|
51,281
|
|
|
47,532
|
|
||
Net income attributable to non-controlling interests — joint ventures
|
|
(150
|
)
|
|
(129
|
)
|
||
Net income before non-controlling interests
|
|
51,131
|
|
|
47,403
|
|
||
Net income from continuing operations attributable to non-controlling interests
|
|
—
|
|
|
(2,470
|
)
|
||
Net income available to Taylor Morrison Home Corporation
|
|
$
|
51,131
|
|
|
$
|
44,933
|
|
Home closings gross margin
|
|
18.2
|
%
|
|
18.8
|
%
|
||
Sales, commissions and other marketing costs as a percentage of home closings revenue, net
|
|
7.5
|
%
|
|
7.3
|
%
|
||
General and administrative expenses as a percentage of home closings revenue, net
|
|
4.1
|
%
|
|
4.5
|
%
|
||
Average sales price per home closed
|
|
$
|
464
|
|
|
$
|
474
|
|
|
|
Three Months Ended March 31,
|
|||||||
|
|
2019
|
|
2018
|
|
Change
|
|||
East
|
|
173
|
|
|
124
|
|
|
39.5
|
%
|
Central
|
|
140
|
|
|
115
|
|
|
21.7
|
|
West
|
|
59
|
|
|
49
|
|
|
20.4
|
|
Total
|
|
372
|
|
|
288
|
|
|
29.2
|
%
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|||||||||||||||||||||||||||||
|
|
Net Sales Orders (1)
|
|
Sales Value (1)
|
|
Average Selling Price
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|||||||||||||
East
|
|
1,135
|
|
|
1,000
|
|
|
13.5
|
%
|
|
$
|
472,336
|
|
|
$
|
416,802
|
|
|
13.3
|
%
|
|
$
|
416
|
|
|
$
|
417
|
|
|
(0.2
|
)%
|
Central
|
|
801
|
|
|
755
|
|
|
6.1
|
|
|
370,323
|
|
|
373,506
|
|
|
(0.9
|
)
|
|
462
|
|
|
495
|
|
|
(6.7
|
)
|
||||
West
|
|
679
|
|
|
688
|
|
|
(1.3
|
)
|
|
369,884
|
|
|
426,636
|
|
|
(13.3
|
)
|
|
545
|
|
|
620
|
|
|
(12.1
|
)
|
||||
Total
|
|
2,615
|
|
|
2,443
|
|
|
7.0
|
%
|
|
$
|
1,212,543
|
|
|
$
|
1,216,944
|
|
|
(0.4
|
)%
|
|
$
|
464
|
|
|
$
|
498
|
|
|
(6.8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cancellation Rate(1)
|
|
||||
|
|
Three Months Ended March 31,
|
|
||||
|
|
2019
|
|
2018
|
|
||
East
|
|
13.1
|
%
|
|
10.5
|
%
|
|
Central
|
|
12.6
|
|
|
9.0
|
|
|
West
|
|
14.6
|
|
|
7.8
|
|
|
Total Company
|
|
13.3
|
%
|
|
9.3
|
%
|
|
|
|
As of March 31,
|
|||||||||||||||||||||||||||||
|
|
Sold Homes in Backlog (1)
|
|
Sales Value
|
|
Average Selling Price
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|||||||||||||
East
|
|
1,919
|
|
|
1,813
|
|
|
5.8
|
%
|
|
$
|
848,732
|
|
|
$
|
781,273
|
|
|
8.6
|
%
|
|
$
|
442
|
|
|
$
|
431
|
|
|
2.6
|
%
|
Central
|
|
1,676
|
|
|
1,372
|
|
|
22.2
|
|
|
849,553
|
|
|
675,944
|
|
|
25.7
|
|
|
507
|
|
|
493
|
|
|
2.8
|
|
||||
West
|
|
1,240
|
|
|
1,207
|
|
|
2.7
|
|
|
693,945
|
|
|
728,056
|
|
|
(4.7
|
)
|
|
560
|
|
|
603
|
|
|
(7.1
|
)
|
||||
Total
|
|
4,835
|
|
|
4,392
|
|
|
10.1
|
%
|
|
$
|
2,392,230
|
|
|
$
|
2,185,273
|
|
|
9.5
|
%
|
|
$
|
495
|
|
|
$
|
498
|
|
|
(0.6
|
)%
|
|
|
Three Months Ended March 31,
|
|||||||||||||||||||||||||||||
|
|
Homes Closed
|
|
Home Closings Revenue, Net
|
|
Average Selling Price
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|||||||||||||
East
|
|
854
|
|
|
700
|
|
|
22.0
|
%
|
|
$
|
348,167
|
|
|
$
|
284,436
|
|
|
22.4
|
%
|
|
$
|
408
|
|
|
$
|
406
|
|
|
0.5
|
%
|
Central
|
|
545
|
|
|
434
|
|
|
25.6
|
|
|
252,565
|
|
|
213,465
|
|
|
18.3
|
|
|
463
|
|
|
492
|
|
|
(5.9
|
)
|
||||
West
|
|
539
|
|
|
413
|
|
|
30.5
|
|
|
299,149
|
|
|
235,058
|
|
|
27.3
|
|
|
555
|
|
|
569
|
|
|
(2.5
|
)
|
||||
Total
|
|
1,938
|
|
|
1,547
|
|
|
25.3
|
%
|
|
$
|
899,881
|
|
|
$
|
732,959
|
|
|
22.8
|
%
|
|
$
|
464
|
|
|
$
|
474
|
|
|
(2.1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||||||
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
Change
|
||||||
East
|
|
$
|
1,731
|
|
|
$
|
371
|
|
|
$
|
1,360
|
|
Central
|
|
2,382
|
|
|
647
|
|
|
1,735
|
|
|||
West
|
|
—
|
|
|
4,150
|
|
|
(4,150
|
)
|
|||
Total
|
|
$
|
4,113
|
|
|
$
|
5,168
|
|
|
$
|
(1,055
|
)
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||||||
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
Change
|
||||||
East
|
|
$
|
5,054
|
|
|
$
|
—
|
|
|
$
|
5,054
|
|
Central
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
West
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
$
|
5,054
|
|
|
$
|
—
|
|
|
$
|
5,054
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||||||||||
|
|
East
|
|
Central
|
|
West
|
|
Consolidated
|
||||||||||||||||||||||||
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
Home closings revenue, net
|
|
$
|
348,167
|
|
|
$
|
284,436
|
|
|
$
|
252,565
|
|
|
$
|
213,465
|
|
|
$
|
299,149
|
|
|
$
|
235,058
|
|
|
$
|
899,881
|
|
|
$
|
732,959
|
|
Cost of home closings
|
|
288,579
|
|
|
232,199
|
|
|
211,266
|
|
|
173,094
|
|
|
235,952
|
|
|
189,613
|
|
|
735,797
|
|
|
594,906
|
|
||||||||
Home closings gross margin
|
|
59,588
|
|
|
52,237
|
|
|
41,299
|
|
|
40,371
|
|
|
63,197
|
|
|
45,445
|
|
|
164,084
|
|
|
138,053
|
|
||||||||
Home closings gross margin %
|
|
17.1
|
%
|
|
18.4
|
%
|
|
16.4
|
%
|
|
18.9
|
%
|
|
21.1
|
%
|
|
19.3
|
%
|
|
18.2
|
%
|
|
18.8
|
%
|
|
|
|
|
|
|
|
|||||
|
|
Three Months Ended
March 31, |
|||||||||
(In thousands, except the number of loan originations)
|
|
2019
|
|
2018
|
|
Change
|
|||||
Mortgage operations revenue
|
|
$
|
13,197
|
|
|
$
|
12,319
|
|
|
7.1
|
%
|
Mortgage operations revenue - other
|
|
664
|
|
|
473
|
|
|
40.4
|
|
||
Title services revenue
|
|
2,183
|
|
|
1,414
|
|
|
54.4
|
|
||
Total financial services revenue
|
|
16,044
|
|
|
14,206
|
|
|
12.9
|
%
|
||
Financial services equity in income of unconsolidated entities
|
|
1,409
|
|
|
1,659
|
|
|
(15.1
|
)
|
||
Total revenue
|
|
17,453
|
|
|
15,865
|
|
|
10.0
|
|
||
Financial services expenses
|
|
10,721
|
|
|
10,044
|
|
|
6.7
|
|
||
Financial services income before income taxes
|
|
$
|
6,732
|
|
|
$
|
5,821
|
|
|
15.7
|
%
|
Total originations:
|
|
|
|
|
|
|
|||||
Loans
|
|
901
|
|
|
916
|
|
|
(1.6
|
)%
|
||
Principal
|
|
$
|
316,760
|
|
|
$
|
317,336
|
|
|
(0.2
|
)%
|
|
|
Three Months Ended
March 31, |
||||
|
|
2019
|
|
2018
|
||
Supplemental data:
|
|
|
|
|
||
Average FICO score
|
|
752
|
|
|
747
|
|
Funded origination breakdown:
|
|
|
|
|
||
Government (FHA,VA,USDA)
|
|
13
|
%
|
|
15
|
%
|
Other agency
|
|
70
|
%
|
|
71
|
%
|
Total agency
|
|
83
|
%
|
|
86
|
%
|
Non-agency
|
|
17
|
%
|
|
14
|
%
|
Total funded originations
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Borrowings under our Revolving Credit Facility;
|
•
|
Our various series of Senior Notes;
|
•
|
Mortgage warehouse facilities;
|
•
|
Project-level real estate financing (including non-recourse loans);
|
•
|
Performance, payment and completion surety bonds, and letters of credit; and
|
•
|
Cash generated from operations.
|
•
|
Cash generated from operations; and
|
•
|
Borrowings under our Revolving Credit Facility.
|
|
|
As of
|
||||||
(Dollars in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Cash, excluding Restricted Cash
|
|
$
|
171,982
|
|
|
$
|
329,645
|
|
|
|
|
|
|
||||
Revolving Credit Facility
|
|
600,000
|
|
|
600,000
|
|
||
364-Day Credit Agreement
|
|
200,000
|
|
|
200,000
|
|
||
Letters of Credit Outstanding
|
|
(60,952
|
)
|
|
(62,315
|
)
|
||
Revolving Credit Facility Borrowings Outstanding
|
|
(35,000
|
)
|
|
—
|
|
||
364-Day Credit Agreement Borrowings Outstanding
|
|
(200,000
|
)
|
|
(200,000
|
)
|
||
Revolving Credit Facility Availability
|
|
504,048
|
|
|
537,685
|
|
||
|
|
|
|
|
||||
Total Liquidity
|
|
$
|
676,030
|
|
|
$
|
867,330
|
|
(Dollars in thousands)
|
|
Date Issued/Assumed
|
|
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 2022
|
|
October 2, 2018(1)
|
|
400,000
|
|
|
N/A
|
|
6.625
|
%
|
|
N/A
|
|
N/A
|
|
|||||
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
|
|
|
|
$
|
1,650,000
|
|
|
|
|
|
|
$
|
1,232,500
|
|
|
$
|
17,500
|
|
(Dollars in thousands)
|
|
As of March 31, 2019
|
||||||||||||
Facility
|
|
Amount Drawn
|
|
Facility Amount
|
|
Interest Rate
|
|
Expiration Date
|
|
Collateral (1)
|
||||
Warehouse A
|
|
$
|
12,271
|
|
|
$
|
45,000
|
|
|
LIBOR + 1.75%
|
|
On Demand
|
|
Mortgage Loans
|
Warehouse B
|
|
9,181
|
|
|
50,000
|
|
|
LIBOR + 1.75%
|
|
On Demand
|
|
Mortgage Loans
|
||
Warehouse C
|
|
37,662
|
|
|
75,000
|
|
|
LIBOR + 1.95%
|
|
On Demand
|
|
Mortgage Loans and Restricted Cash
|
||
Total
|
|
$
|
59,114
|
|
|
$
|
170,000
|
|
|
|
|
|
|
|
|
|
As of
|
||||||
(Dollars in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Letters of credit (1)
|
|
$
|
63,395
|
|
|
$
|
62,315
|
|
Surety bonds
|
|
375,206
|
|
|
334,892
|
|
||
Total outstanding letters of credit and surety bonds
|
|
$
|
438,601
|
|
|
$
|
397,207
|
|
•
|
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)
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
|
Total
|
|
|||||||||||||||||
Fixed Rate Debt
|
|
$
|
81.7
|
|
|
$
|
25.2
|
|
|
$
|
582.2
|
|
|
$
|
408.4
|
|
|
$
|
372.3
|
|
|
$
|
373.0
|
|
|
$
|
1,842.8
|
|
|
$
|
1,858.4
|
|
Weighted average interest rate(1)
|
|
2.3
|
%
|
|
2.3
|
%
|
|
5.6
|
%
|
|
5.7
|
%
|
|
5.6
|
%
|
|
5.6
|
%
|
|
5.4
|
%
|
|
|
|||||||||
Variable Rate Debt(2)
|
|
$
|
294.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
294.1
|
|
|
$
|
294.1
|
|
Weighted average interest rate
|
|
3.8
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||
|
Total number of shares purchased
|
|
Average price paid per share
|
|
Total number of shares purchased as part of publicly announced plans or programs
|
|
Approximate dollar value of shares that may yet be purchased under the plans or programs (in thousands) (a)
|
||||||
January 1 to January 31, 2019
|
2,426,640
|
|
|
$
|
17.54
|
|
|
13,980,724
|
|
|
$
|
14,872
|
|
February 1 to February 28, 2019
|
786,617
|
|
|
$
|
18.90
|
|
|
14,767,341
|
|
|
$
|
2
|
|
March 1 to March 31, 2019
|
1,163,622
|
|
|
$
|
17.54
|
|
|
15,930,963
|
|
|
$
|
79,598
|
|
Total
|
4,376,879
|
|
|
|
|
15,930,963
|
|
|
|
Exhibit
No.
|
|
Description
|
|
|
|
2.1†
|
|
Agreement and Plan of Merger, dated June 7, 2018, by and among Taylor Morrison Home Corporation, Taylor Morrison Communities, Inc., Thor Merger Sub, Inc. and AV Homes, Inc. (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K, filed 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).
|
|
|
|
3.1
|
|
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).
|
|
|
|
3.2
|
|
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).
|
|
|
|
3.3
|
|
Amended and Restated By-laws. (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).
|
|
|
|
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.
|
|
|
|
TAYLOR MORRISON HOME CORPORATION
|
|
|
|
Registrant
|
DATE:
|
May 1, 2019
|
|
|
|
|
|
/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)
|
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.
|
May 1, 2019
|
|
/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.
|
May 1, 2019
|
|
/s/ C. David Cone
|
|
|
C. David Cone
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
Taylor Morrison Home Corporation
|