Taylor Morrison Home Corporation (the “Company” or “Taylor Morrison”) (NYSE: TMHC) announced today financial results for the third quarter ended September 30, 2013. Earnings per share were $0.43 on net income for the quarter of $53.1 million. This compared to net income of $42.6 million for the third quarter of 2012.
“We are pleased to share our third quarter 2013 results, which demonstrate the continued success of our strategy and execution of our operations. As the homebuilding industry recovery continues to evolve, I believe it’s important to highlight our approach and reiterate how well-positioned for the future I believe we are,” said Sheryl Palmer, President and CEO. “Our strategy continues to be built for the long-term and the results we’re releasing today exhibit how our research-based approach to underwriting and consumer segmentation, as well as our land development expertise and efficient cost structure, have continued to serve us well into the recovery.”
Net sales orders in the Company’s U.S. operations increased 12% in the third quarter of 2013 with a continued focus on higher priced homes for move-up buyers. Net sales orders in the Company’s Canadian operations declined by 33% as high-rise inventory available for sale was limited due to the timing of wholly-owned high-rise tower launches in the third quarter of last year. Net sales orders on a Company-wide basis increased 3.2% to 1,163 in the third quarter of 2013, as compared to 1,127 in the third quarter of last year. During the quarter, average community count increased by 41% to 174. The Company’s overall monthly absorption pace was 2.2 net sales orders per community in the third quarter of 2013 compared to 3.1 for the third quarter of 2012.
The sales order backlog value in the U.S. increased 76% to $1.1 billion at September 30, 2013 from $626.3 million at September 30, 2012 and 48% in units to 2,580 homes at September 30, 2013 as compared to 1,747 at September 30, 2012. The Company’s consolidated sales order backlog value increased 28% to approximately $1.5 billion at September 30, 2013 from $1.2 billion at September 30, 2012, as backlog units increased 12% to 3,684 homes at September 30, 2013 compared with 3,302 homes at September 30, 2012. The third quarter 2013 cancellation rate, representing cancelled sales orders divided by gross sales orders, was 15%, as compared to 13.4% in the third quarter of 2012.