Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Taylor Morrison Home Corp | d864388d8k.htm |
| EX-99.2 - EX-99.2 - Taylor Morrison Home Corp | d864388dex992.htm |
Exhibit 99.1
TAYLOR MORRISON HOME CORPORATION
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
AT SEPTEMBER 30, 2014
(In thousands, except share amounts)
| Historical(1) | Separation of Monarch(2) |
Pro Forma | ||||||||||
| Assets |
||||||||||||
| Cash and cash equivalents |
$ | 281,528 | $ | 317,316 | (3) | $ | 598,844 | |||||
| Restricted cash |
12,871 | (11,999 | ) | 872 | ||||||||
| Real estate inventory: |
||||||||||||
| Owned inventory |
2,831,874 | (216,883 | ) | 2,614,991 | ||||||||
| Real estate not owned under option agreements |
11,408 | — | 11,408 | |||||||||
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|
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|
|||||||
| Total real estate inventory |
2,843,282 | (216,883 | ) | 2,626,399 | ||||||||
| Land deposits |
48,816 | (6,279 | ) | 42,537 | ||||||||
| Loans receivable |
42,125 | (42,125 | ) | — | ||||||||
| Mortgages receivable |
72,919 | — | 72,919 | |||||||||
| Tax indemnification receivable |
5,383 | (5,365 | ) | 18 | ||||||||
| Prepaid expenses and other assets, net |
112,338 | (14,030 | ) | 98,308 | ||||||||
| Other receivables, net |
107,429 | (19,259 | ) | 88,170 | ||||||||
| Investments in unconsolidated entities |
216,777 | (129,827 | ) | 86,950 | ||||||||
| Deferred tax assets, net |
247,637 | (2,170 | ) | 245,467 | ||||||||
| Property and equipment, net |
7,871 | (2,734 | ) | 5,137 | ||||||||
| Intangible assets, net |
10,789 | (3,788 | ) | 7,001 | ||||||||
| Goodwill |
23,375 | — | 23,375 | |||||||||
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|
|||||||
| Total assets |
$ | 4,033,140 | $ | (137,143 | ) | $ | 3,895,997 | |||||
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|||||||
| Liabilities |
||||||||||||
| Accounts payable |
$ | 142,910 | $ | (19,999 | ) | 122,911 | ||||||
| Accrued expenses and other liabilities |
234,419 | (45,422 | ) | 188,997 | ||||||||
| Income taxes payable |
19,857 | (5,845 | ) | 14,012 | ||||||||
| Customer deposits |
112,208 | (22,939 | ) | 89,269 | ||||||||
| Senior notes |
1,389,004 | — | 1,389,004 | |||||||||
| Loans payable and other borrowings |
233,507 | (100,317 | ) | 133,190 | ||||||||
| Revolving credit facility borrowings |
150,000 | — | 150,000 | |||||||||
| Mortgage borrowings |
48,573 | — | 48,573 | |||||||||
| Liabilities attributable to consolidated option agreements |
11,408 | — | 11,408 | |||||||||
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|||||||
| Total liabilities |
2,341,886 | (194,522 | ) | 2,147,364 | ||||||||
| Stockholders’ Equity |
||||||||||||
| Class A common stock, $0.00001 par value, 400,000,000 shares authorized, 33,059,687 shares issued and outstanding as of September 30, 2014 |
— | — | — | |||||||||
| Class B common stock, $0.00001 par value, 200,000,000 shares authorized, 89,228,269 shares issued and outstanding as of September 30, 2014 |
1 | — | 1 | |||||||||
| Preferred stock, $0.00001 par value, 50,000,000 shares authorized, no shares issued and outstanding as of December 31, 2013 and December 31, 2012 |
— | — | — | |||||||||
| Additional paid-in capital |
373,953 | — | 373,953 | |||||||||
| Retained earnings |
87,073 | 57,379 | 144,452 | |||||||||
| Accumulated other comprehensive loss |
(5,912 | ) | — | (5,912 | ) | |||||||
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|||||||
| Total stockholders’ equity attributable to Taylor Morrison Home Corporation |
455,115 | 57,379 | 512,494 | |||||||||
| Non-controlling interests – joint ventures |
6,882 | — | 6,882 | |||||||||
| Non-controlling interests – Principal Equityholders . |
1,229,257 | — | 1,229,257 | |||||||||
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|||||||
| Total stockholders’ equity |
1,691,254 | 57,379 | 1,748,633 | |||||||||
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| Total liabilities and stockholders’ equity |
$ | 4,033,140 | $ | (137,143 | ) | $ | 3,895,997 | |||||
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See accompanying Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements
TAYLOR MORRISON HOME CORPORATION
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2014
(In thousands, except per share amounts)
| Historical(1) | Separation of Monarch(2) |
Pro Forma | ||||||||||
| Home closings revenue |
$ | 1,890,057 | $ | (236,167 | ) | $ | 1,653,890 | |||||
| Land closings revenue |
23,100 | (3,180 | ) | 19,920 | ||||||||
| Mortgage operations revenue |
22,870 | — | 22,870 | |||||||||
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|
|||||||
| Total revenues |
1,936,027 | (239,347 | ) | 1,696,680 | ||||||||
| Cost of home closings |
1,498,906 | (194,313 | ) | 1,304,593 | ||||||||
| Cost of land closings |
17,442 | (1,682 | ) | 15,760 | ||||||||
| Mortgage operations expenses |
13,641 | — | 13,641 | |||||||||
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|||||||
| Total cost of revenues |
1,529,989 | (195,995 | ) | 1,333,994 | ||||||||
| Gross margin |
406,038 | (43,352 | ) | 362,686 | ||||||||
| Sales, commissions and other marketing costs |
124,303 | (9,941 | ) | 114,362 | ||||||||
| General and administrative expenses |
66,274 | (8,693 | ) | 57,581 | ||||||||
| Equity in income of unconsolidated entities |
(22,497 | ) | 19,029 | (3,468 | ) | |||||||
| Interest expense, net |
747 | 378 | 1,125 | |||||||||
| Other expense, net |
10,296 | 275 | 10,571 | |||||||||
| Indemnification and transaction income |
(142 | ) | 142 | — | ||||||||
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| Income from continuing operations before income taxes |
227,057 | (44,542 | ) | 182,515 | ||||||||
| Income tax provision |
64,087 | (13,486 | ) | 50,601 | ||||||||
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| Net income before allocation to non-controlling interests |
162,970 | (31,056 | ) | 131,914 | ||||||||
| Net income attributable to non-controlling interests – joint ventures |
(386 | ) | — | (386 | ) | |||||||
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| Net income before non-controlling interests – Principal Equityholders |
162,584 | (31,056 | ) | 131,528 | ||||||||
| Net income from continuing operations attributable to non-controlling interests – Principal Equityholders |
(118,990 | ) | 22,660 | (96,330 | ) | |||||||
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| Net income available to Taylor Morrison Home Corporation |
$ | 43,594 | $ | (8,396 | ) | $ | 35,198 | |||||
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| Earnings per common share: |
||||||||||||
| Basic |
$ | 1.33 | $ | 1.07 | ||||||||
| Diluted |
$ | 1.33 | $ | 1.07 | ||||||||
| Weighted average number of shares of common stock: |
||||||||||||
| Basic |
32,896 | 32,896 | ||||||||||
| Diluted |
122,345 | 122,345 | ||||||||||
See accompanying Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements
TAYLOR MORRISON HOME CORPORATION
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2013
(In thousands, except per share amounts)
| Historical(1) | Separation of Monarch(2) |
Pro Forma | ||||||||||
| Home closings revenue |
$ | 2,264,985 | $ | (407,035 | ) | $ | 1,857,950 | |||||
| Land closings revenue |
27,881 | (121 | ) | 27,760 | ||||||||
| Mortgage operations revenue |
30,371 | — | 30,371 | |||||||||
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| Total revenues |
2,323,237 | (407,156 | ) | 1,916,081 | ||||||||
| Cost of home closings |
1,774,761 | (317,307 | ) | 1,457,454 | ||||||||
| Cost of land closings |
26,741 | (425 | ) | 26,316 | ||||||||
| Mortgage operations expenses |
16,446 | — | 16,446 | |||||||||
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| Total cost of revenues |
1,817,948 | (317,732 | ) | 1,500,216 | ||||||||
| Gross margin |
505,289 | (89,424 | ) | 415,865 | ||||||||
| Sales, commissions and other marketing costs |
142,848 | (15,429 | ) | 127,419 | ||||||||
| General and administrative expenses |
90,743 | (13,545 | ) | 77,198 | ||||||||
| Equity in income of unconsolidated entities |
(37,563 | ) | 34,668 | (2,895 | ) | |||||||
| Interest (income) expense, net |
(476 | ) | 1,318 | 842 | ||||||||
| Other expense, net |
2,541 | 301 | 2,842 | |||||||||
| Loss on extinguishment of debt |
10,141 | — | 10,141 | |||||||||
| Indemnification and transaction expenses |
199,119 | (3,346 | ) | 195,773 | ||||||||
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| Income from continuing operations before income taxes |
97,936 | (93,391 | ) | 4,545 | ||||||||
| Income tax provision (benefit) |
3,068 | (26,878 | ) | (23,810 | ) | |||||||
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| Net income before allocation to non-controlling interests |
94,868 | (66,513 | ) | 28,355 | ||||||||
| Net loss attributable to non-controlling interests – joint ventures |
131 | — | 131 | |||||||||
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| Net income before non-controlling interests – Principal Equityholders |
94,999 | (66,513 | ) | 28,486 | ||||||||
| Net income from continuing operations attributable to non-controlling interests – Principal Equityholders |
(49,579 | ) | 51,021 | 1,442 | ||||||||
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| Net income available to Taylor Morrison Home Corporation |
$ | 45,420 | $ | (15,492 | ) | $ | 29,928 | |||||
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| Earnings per common share: |
||||||||||||
| Basic |
$ | 1.38 | $ | 0.91 | ||||||||
| Diluted |
$ | 1.38 | $ | 0.91 | ||||||||
| Weighted average number of shares of common stock: |
||||||||||||
| Basic |
32,840 | 32,840 | ||||||||||
| Diluted |
122,319 | 122,319 | ||||||||||
See accompanying Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements
TAYLOR MORRISON HOME CORPORATION
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2012
(In thousands, except per share amounts)
| Historical(1) | Separation of Monarch(2) |
Pro Forma | ||||||||||
| Home closings revenue |
$ | 1,369,452 | $ | (383,254 | ) | $ | 986,198 | |||||
| Land closings revenue |
44,408 | (11,285 | ) | 33,123 | ||||||||
| Mortgage operations revenue |
21,861 | — | 21,861 | |||||||||
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| Total revenues |
1,435,721 | (394,539 | ) | 1,041,182 | ||||||||
| Cost of home closings |
1,077,525 | (281,546 | ) | 795,979 | ||||||||
| Cost of land closings |
35,884 | (8,588 | ) | 27,296 | ||||||||
| Mortgage operations expenses |
11,266 | — | 11,266 | |||||||||
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| Total cost of revenues |
1,124,675 | (290,134 | ) | 834,541 | ||||||||
| Gross margin |
311,046 | (104,405 | ) | 206,641 | ||||||||
| Sales, commissions and other marketing costs |
80,907 | (10,509 | ) | 70,398 | ||||||||
| General and administrative expenses |
60,444 | (18,577 | ) | 41,867 | ||||||||
| Equity in income of unconsolidated entities |
(22,964 | ) | 21,750 | (1,214 | ) | |||||||
| Interest income, net |
(2,446 | ) | 1,688 | (758 | ) | |||||||
| Other expense, net |
3,567 | 137 | 3,704 | |||||||||
| Loss on extinguishment of debt |
7,953 | — | 7,953 | |||||||||
| Indemnification and transaction expenses |
13,034 | — | 13,034 | |||||||||
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| Income from continuing operations before income taxes |
170,551 | (98,894 | ) | 71,657 | ||||||||
| Income tax benefit |
(260,297 | ) | (24,001 | ) | (284,298 | ) | ||||||
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| Net income before allocation to non-controlling interests |
430,848 | (74,893 | ) | 355,955 | ||||||||
| Net income attributable to non-controlling interests— joint ventures |
(28 | ) | — | (28 | ) | |||||||
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| Net income before non-controlling interests – Principal Equityholders |
430,820 | (74,893 | ) | 355,927 | ||||||||
| Net income from continuing operations attributable to non-controlling interests – Principal Equityholders |
(430,820 | ) | 74,893 | (355,927 | ) | |||||||
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| Net income available to Taylor Morrison Home Corporation |
$ | — | $ | — | $ | — | ||||||
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| Earnings per common share:(4) |
||||||||||||
| Basic |
N/A | N/A | ||||||||||
| Diluted |
N/A | N/A | ||||||||||
| Weighted average number of shares of common stock: |
||||||||||||
| Basic |
N/A | N/A | ||||||||||
| Diluted |
N/A | N/A | ||||||||||
See accompanying Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements
TAYLOR MORRISON HOME CORPORATION
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
JULY 13, 2011 THROUGH DECEMBER 31, 2011
(In thousands, except per share amounts)
| Historical(1) | Separation of Monarch(2) |
Pro Forma |
||||||||||
| Home closings revenue |
$ | 731,216 | $ | (341,010 | ) | $ | 390,206 | |||||
| Land closings revenue |
10,657 | — | 10,657 | |||||||||
| Mortgage operations revenue |
8,579 | — | 8,579 | |||||||||
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| Total revenues |
750,452 | (341,010 | ) | 409,442 | ||||||||
| Cost of home closings |
591,891 | (271,761 | ) | 320,130 | ||||||||
| Cost of land closings |
8,583 | — | 8,583 | |||||||||
| Mortgage operations expenses |
4,495 | — | 4,495 | |||||||||
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| Total cost of revenues |
604,969 | (271,761 | ) | 333,208 | ||||||||
| Gross margin |
145,483 | (69,249 | ) | 76,234 | ||||||||
| Sales, commissions and other marketing costs |
36,316 | (7,984 | ) | 28,332 | ||||||||
| General and administrative expenses |
32,883 | (8,264 | ) | 24,619 | ||||||||
| Equity in income of unconsolidated entities |
(5,247 | ) | 4,220 | (1,027 | ) | |||||||
| Interest income, net |
(3,867 | ) | (2,380 | ) | (6,247 | ) | ||||||
| Other expense, net |
2,308 | (544 | ) | 1,764 | ||||||||
| Indemnification and transaction expenses |
52,292 | (12,201 | ) | 40,091 | ||||||||
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| Income (loss) from continuing operations before income taxes |
30,798 | (42,096 | ) | (11,298 | ) | |||||||
| Income tax provision (benefit) |
4,031 | (16,036 | ) | (12,005 | ) | |||||||
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| Net income before allocation to non-controlling interests |
26,767 | (26,060 | ) | 707 | ||||||||
| Net income attributable to non-controlling interests— joint ventures |
(1,178 | ) | — | (1,178 | ) | |||||||
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| Net income (loss) before non-controlling interests – Principal Equityholders |
25,589 | (26,060 | ) | (471 | ) | |||||||
| Net (income) loss from continuing operations attributable to non-controlling interests – Principal Equityholders |
(25,589 | ) | 26,060 | 471 | ||||||||
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| Net income available to Taylor Morrison Home Corporation |
$ | — | $ | — | $ | — | ||||||
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| Earnings per common share:(4) |
||||||||||||
| Basic |
N/A | N/A | ||||||||||
| Diluted |
N/A | N/A | ||||||||||
| Weighted average number of shares of common stock: |
||||||||||||
| Basic |
N/A | N/A | ||||||||||
| Diluted |
N/A | N/A | ||||||||||
See accompanying Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements
TAYLOR MORRISON HOME CORPORATION
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
JANUARY 1, 2011 THROUGH JULY 12, 2011
(In thousands, except per share amounts)
| Historical(1) | Separation of Monarch(2) |
Pro Forma |
||||||||||
| Home closings revenue |
$ | 600,069 | $ | (278,283 | ) | $ | 321,786 | |||||
| Land closings revenue |
13,639 | — | 13,639 | |||||||||
| Mortgage operations revenue |
6,027 | — | 6,027 | |||||||||
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|
|||||||
| Total revenues |
619,735 | (278,283 | ) | 341,452 | ||||||||
| Cost of home closings |
474,534 | (207,956 | ) | 266,578 | ||||||||
| Cost of land closings |
7,133 | — | 7,133 | |||||||||
| Mortgage operations expenses |
3,818 | — | 3,818 | |||||||||
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|||||||
| Total cost of revenues |
485,485 | (207,956 | ) | 277,529 | ||||||||
| Gross margin |
134,250 | (70,327 | ) | 63,923 | ||||||||
| Sales, commissions and other marketing costs |
40,126 | (11,095 | ) | 29,031 | ||||||||
| General and administrative expenses |
35,743 | (10,536 | ) | 25,207 | ||||||||
| Equity in income of unconsolidated entities |
(2,803 | ) | 2,433 | (370 | ) | |||||||
| Interest expense, net |
941 | (649 | ) | 292 | ||||||||
| Other income, net |
(10,658 | ) | 8,522 | (2,136 | ) | |||||||
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| Income from continuing operations before income taxes |
70,901 | (59,002 | ) | 11,899 | ||||||||
| Income tax provision |
20,881 | (16,652 | ) | 4,229 | ||||||||
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| Net income before allocation to non-controlling interests |
50,020 | (42,350 | ) | 7,670 | ||||||||
| Net income attributable to non-controlling interests— joint ventures |
(4,122 | ) | — | (4,122 | ) | |||||||
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| Net income before non-controlling interests – Principal Equityholders |
45,898 | (42,350 | ) | 3,548 | ||||||||
| Net income from continuing operations attributable to non-controlling interests – Principal Equityholders |
(45,898 | ) | 42,350 | (3,548 | ) | |||||||
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| Net income available to Taylor Morrison Home Corporation |
$ | — | $ | — | $ | — | ||||||
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| Earnings per common share:(4) |
||||||||||||
| Basic |
N/A | N/A | ||||||||||
| Diluted |
N/A | N/A | ||||||||||
| Weighted average number of shares of common stock: |
||||||||||||
| Basic |
N/A | N/A | ||||||||||
| Diluted |
N/A | N/A | ||||||||||
See accompanying Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements
Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements
| (1) | Reflects the historical operating results of the Company as previously reported. |
| (2) | Represents the adjustments to record the effect of the Transaction. The Company is expected to realize a gain between $50 and $60 million, net of transaction costs, associated with the Transaction which have been excluded from the pro forma results due to their non-recurring nature. |
| (3) | Represents the net cash proceeds from the Transaction after giving effect to certain transaction costs and the impact of existing cash at Monarch Corporation. |
| (4) | Prior to the Company’s IPO on April 12, 2013 no common shares were outstanding. |