Taylor Morrison Home Corporation (the “Company” or “Taylor Morrison”) (NYSE: TMHC) announced today financial results for the second quarter ended June 30, 2013.
“We are delighted to report improvement in virtually all key operational metrics, adding to more than three years of profitability. The results we’re releasing today continue to reflect a reward for years of diligence in managing the business during the downturn,” said Sheryl Palmer, President and CEO. “The quality of our locations and our land development capability drives the strength of our backlog, home revenue and margin growth. Our team’s conscientious implementation of our strategy and superior execution has allowed us to capitalize on the improvement in the housing market in the first half of 2013.”
Net sales orders increased 26% to 1,596 in the second quarter of 2013 as compared to 1,267 in the second quarter of last year. Net sales orders in the Company’s U.S. operations increased 33% in the second quarter of 2013, partially offset by a 9% sales order decline in its Canadian operations during the same period. During the quarter, community count increased by 45 % to 172. The Company’s overall monthly absorption pace was 3.1 net sales orders per community in the second quarter of 2013 compared to 3.6 for the second quarter of 2012. During the quarter, the Company intentionally limited releases and sales pace in order to manage its growing backlog, production and overall customer expectations while maximizing profitability and efficient use of land assets.
The Company’s sales order backlog value increased 55% to $1.6 billion at June 30, 2013 from $1.0 billion at June 30, 2012, as backlog units increased 35% to 4,127 homes at June 30, 2013 compared with 3,053 homes at June 30, 2012. The second quarter 2013 cancellation rate, representing cancelled sales orders divided by gross sales orders, was 12.4 % in the second quarter of 2013, compared to 12.8 % in the second quarter of 2012.