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8-K - 8-K - Taylor Morrison Home Corpd334037d8k.htm

Exhibit 99.1

 

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News Release

 

    CONTACT: Investor Relations
    Taylor Morrison Home Corporation
   

(480) 734-2060

investor@taylormorrison.com

Taylor Morrison Reports Fourth Quarter Revenue of $1.2 Billion and Earnings per Share of $0.63

SCOTTSDALE, Ariz., Jan. 30, 2017 –– Taylor Morrison Home Corporation (NYSE:TMHC) today reported fourth quarter total revenue of $1.2 billion, net income of $76 million and earnings per share of $0.63, or $0.65 as adjusted.

Fourth Quarter 2016 Highlights:

 

    Net sales orders were 1,701, an 18% increase from the prior year quarter

 

    Home closings were 2,425, a 17% increase from the prior year quarter

 

    Total revenue was $1.2 billion, a 23% increase from the prior year quarter

 

    GAAP home closings gross margin, inclusive of capitalized interest, was 17.8%

 

    Net income from continuing operations for the quarter was $76 million with earnings per share of $0.63, an increase of nearly 19% from the prior year quarter

Full Year 2016 Highlights:

 

    Net sales orders were 7,504, a 12% increase from the prior year

 

    Home closings were 7,369, a 17% increase from the prior year

 

    Total revenue was $3.6 billion, a 19% increase from the prior year

 

    GAAP home closings gross margin, inclusive of capitalized interest, was 18.2%

 

    Net income from continuing operations for the year was $207 million, with earnings per share of $1.69, an increase of 22% from the prior year

“I am pleased with our organization’s performance both for the fourth quarter and the full year,” said Sheryl Palmer, President and CEO of Taylor Morrison. “Our team members demonstrated great commitment to our strategic priorities while keeping our customers’ needs at the forefront.” This was proven with the recent announcement of the Company being named America’s Most Trusted® Homebuilder, according to Lifestory Research, for the second year in a row. “At Taylor Morrison, we believe that relationships and trust are the foundation of our success, and I am so proud of our team for this well-deserved recognition and achievement.”

For the full year 2016, the Company was able to deliver strong results both operationally and financially. “We finished the year with higher than expected closings, resulting in a 22% increase year-over-year in earnings per share from continuing operations. We closed 7,369 homes, which represented a nearly 17% increase year-over-year, well above the top range of our guidance as we were able to bring forward and close homes that were originally expected to be completed in January 2017,” said Sheryl Palmer. “Net sales orders totaled 7,504 for the year, which represented a 12% increase over the prior year. Closings and net sales orders growth are on top of double-digit growth from the


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previous year, bringing our two-year growth rate for both metrics to over 30%. Community count was up more than 19% year-over-year to an average of 309 communities. This brings our two-year growth rate to 50%.”

“2016 brings an end to two years of planned transformation for Taylor Morrison. Looking forward, we believe we are positioned extremely well to mature with the cycle and drive efficiencies from our strategic foundation as we strive to reach our full potential,” said Sheryl Palmer. “We anticipate numerous benefits from these recent investments to flow through our business and ultimately our financials in 2017 with enhanced scale in certain markets, increased qualified traffic, higher conversion and absorption rates of about 2.3, cycle-time reductions and gains in strategic procurement. This will drive improved EBT dollars and earnings per share year-over-year, while delivering ROE accretion in 2017 and beyond. January 2017 is off to a strong start, with a monthly absorption rate expected to be about 20% higher year-over-year.”.

“The 2016 home closings gross margin was 18.3% as adjusted for a $3.5 million dollar impairment charge taken during the fourth quarter, which was isolated to three assets in our Chicago market,” said Dave Cone, Executive Vice President and Chief Financial Officer. “Looking to 2017, we anticipate a rising labor cost environment and a higher land basis which will be more than offset by the selling down of our aged completed spec inventory and purchase accounting, leading to accretive home closings gross margin year-over-year in the low to mid 18% range.”

The Company ended the quarter with $300 million in cash and a net homebuilding debt to capitalization ratio of 33.7%. Our share buy-back program is a tool within our capital allocation strategy that we have used periodically when prices were compelling. In 2016, the Company re-purchased roughly 1.9 million shares at a cost basis of $14.87.

Homebuilding inventories were $3.0 billion at the end of 2016, including 3,920 homes in inventory, compared to 3,851 homes in inventory at the end of the prior year. Homes in inventory at the end of the quarter consisted of 2,322 sold units, 412 model homes and 1,186 inventory units, of which 238 were finished. The Company owned or controlled approximately 38,300 lots at December 31, 2016, representing 5.2 years of supply and is focused on securing land for 2019 and beyond.


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Quarterly Financial Comparison

($ thousands)

 

     Q4 2016     Q4 2015     Q4 2016 vs. Q4 2015  

Total Revenue

   $ 1,196,967      $ 970,144        23.4

Home Closings Revenue

   $ 1,154,367      $ 934,798        23.5

Home Closings Gross Margin

   $ 205,352      $ 170,667        20.3
     17.8     18.3     50 bps decrease   

Adjusted Home Closings Gross Margin

   $ 239,644      $ 195,227        22.8
     20.8     20.9     10 bps decrease   

SG&A

   $ 105,385      $ 87,013        21.1

% of Home Closings Revenue

     9.1     9.3     20 bps decrease   

Annual Financial Comparison

($ thousands)

     2016     2015     2016 vs. 2015  

Total Revenue

   $ 3,550,029      $ 2,976,820        19.3

Home Closings Revenue

   $ 3,425,521      $ 2,889,968        18.5

Home Closings Gross Margin

   $ 623,782      $ 531,145        17.4
     18.2     18.4     20 bps decrease   

Adjusted Home Closings Gross Margin

   $ 718,106      $ 614,308        16.9
     21.0     21.3     30 bps decrease   

SG&A

   $ 361,763      $ 293,911        23.1

% of Home Closings Revenue

     10.6     10.2     40 bps increase   

First Quarter and Full Year 2017 Business Outlook

First Quarter 2017:

 

    Average active community count is expected to be generally flat sequentially from the fourth quarter 2016

 

    Home closings are expected to be between 1,500 to 1,600

 

    GAAP home closings gross margin, inclusive of capitalized interest, is expected to be about 18%

Full Year 2017:

 

    Average active community count is expected to be generally flat relative to 2016

 

    Monthly absorption pace is expected to be about 2.3

 

    Home closings are expected to be between 7,500 and 8,000

 

    GAAP home closings gross margin, inclusive of capitalized interest, is expected to be accretive to 2016 and be in the low to mid 18% range

 

    SG&A as a percentage of homebuilding revenue is expected to leverage year-over-year and be in the low to mid 10% range

 

    Income from unconsolidated joint ventures is expected to be between $10 million and $12 million

 

    Land and development spend is expected to be approximately $1 billion

 

    Effective tax rate expected to be between 34% and 35%


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About Taylor Morrison

Taylor Morrison Home Corporation (NYSE:TMHC) is a leading national homebuilder and developer that has been recognized as the 2016 and 2017 America’s Most Trusted® Home Builder by Lifestory Research. Based in Scottsdale, Arizona we operate under two well-established brands, Taylor Morrison and Darling Homes. We serve a wide array of consumer groups from coast to coast, including first-time, move-up, luxury, and 55 plus buyers. In Texas, Darling Homes builds communities with a focus on individuality and custom detail while delivering on the Taylor Morrison standard of excellence.

For more information about Taylor Morrison and Darling Homes please visit www.taylormorrison.com or www.darlinghomes.com.

Forward-Looking Statements

This earnings summary includes “forward-looking statements.” These statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these statements. You can identify these statements by the fact that they do not relate to matters of a strictly factual or historical nature and generally discuss or relate to forecasts, estimates or other expectations regarding future events. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “may,” “can,” “could,” “might,” “will” and similar expressions identify forward-looking statements, including statements related to expected operating and performing results, planned transactions, planned objectives of management, future developments or conditions in the industries in which we participate and other trends, developments and uncertainties that may affect our business in the future.

Such risks, uncertainties and other factors include, among other things: changes in general and local economic conditions; slowdowns or severe downturns in the housing market; homebuyers’ ability to obtain suitable financing; shortages in, disruptions of and cost of labor; our ability to obtain additional performance, payment and completion surety bonds and letters of credit; higher cancellation rates; competition in our industry; any increase in unemployment or underemployment; increases in taxes, government fees or interest rates; inflation or deflation; the seasonality of our business; significant home warranty and construction defect claims; our reliance on subcontractors; failure to manage land acquisitions, inventory and development and construction processes; availability of land and lots; decreases in the market value of our land inventory; new or changes in government regulations and legal challenges; our ability to sell mortgages we originate and claims on loans sold to third parties; the loss of any of our important commercial relationships; our ability to use deferred tax assets; raw materials and building supply shortages and price fluctuations; our concentration of significant operations in certain geographic areas; risks associated with our unconsolidated joint venture arrangements; information technology failures and data security breaches; costs to engage in and the success of future growth or expansion of our operations or acquisitions or disposals of businesses; costs associated with our defined benefit and defined contribution pension schemes; damages associated with any major health and safety incident; our ownership, leasing or occupation of land and the use of hazardous materials; material losses in excess of insurance limits; existing or future litigation, arbitration or other claims; negative publicity or poor relations with the residents of our communities; failure to recruit, retain and develop highly skilled, competent people; utility and resource shortages or rate fluctuations; constriction of the capital markets; risks related to our debt and the agreements governing such debt; our ability to access the capital markets; and risks related to our structure and organization. We undertake no duty to update any forward-looking statement, whether as a result of new information, future events or changes in our expectations, except as required by applicable law. In addition, other such risks and uncertainties may be found in Taylor Morrison Home Corporation’s Form 10-K filed with the Securities and Exchange Commission (SEC).


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Taylor Morrison Home Corporation

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts, unaudited)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2016     2015     2016     2015  

Home closings revenue, net

   $ 1,154,367      $ 934,798      $ 3,425,521      $ 2,889,968   

Land closings revenue

     19,596        21,059        64,553        43,770   

Mortgage operations revenue

     23,004        14,287        59,955        43,082   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     1,196,967        970,144        3,550,029        2,976,820   

Cost of home closings

     949,015        764,131        2,801,739        2,358,823   

Cost of land closings

     15,415        11,397        35,912        24,546   

Mortgage operations expenses

     9,505        7,415        32,099        25,536   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenues

     973,935        782,943        2,869,750        2,408,905   

Gross margin

     223,032        187,201        680,279        567,915   

Sales, commissions and other marketing costs

     74,256        61,950        239,556        198,676   

General and administrative expenses

     31,129        25,063        122,207        95,235   

Equity in income of unconsolidated entities

     (2,719     (352     (7,453     (1,759

Interest income, net

     (35     (26     (184     (192

Other expense, net

     3,345        9        11,947        11,634   

Loss on extinguishment of debt

     —          —          —          33,317   

Gain on foreign currency forward

     —          —          —          (29,983
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations before income taxes

     117,056        100,557        314,206        260,987   

Income tax provision

     40,945        35,568        107,643        90,001   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income from continuing operations

     76,111        64,989        206,563        170,986   

Discontinued operations:

        

Transaction expenses from discontinued operations

     —            —          (9,043

Gain on sale of discontinued operations

     —            —          80,205   

Income tax expense from discontinued operations

     —          1,397        —          (13,103
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income from discontinued operations

     —          1,397        —          58,059   

Net income before allocation to non-controlling interests

     76,111        66,386        206,563        229,045   

Net income attributable to non-controlling interests - joint ventures

     (438     (254     (1,294     (1,681
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income before non-controlling interests - Principal Equityholders

     75,673        66,132        205,269        227,364   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income from continuing operations attributable to non-controlling interests - Principal Equityholders

     (56,392     (47,440     (152,653     (123,909

Net income from discontinued operations attributable to non-controlling interests - Principal Equityholders

     —          (1,025     —          (42,406
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income available to Taylor Morrison Home Corporation

   $ 19,281      $ 17,667      $ 52,616      $ 61,049   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per common share - basic:

        

Income from continuing operations

   $ 0.63      $ 0.53      $ 1.69      $ 1.38   

Income from discontinued operations - net of tax

   $ —        $ 0.01      $ —        $ 0.47   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income available to Taylor Morrison Home Corporation

   $ 0.63      $ 0.54      $ 1.69      $ 1.85   

Earnings per common share - diluted:

        

Income from continuing operations

   $ 0.63      $ 0.53      $ 1.69      $ 1.38   

Income from discontinued operations - net of tax

   $ —        $ 0.01      $ —        $ 0.47   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income available to Taylor Morrison Home Corporation

   $ 0.63      $ 0.54      $ 1.69      $ 1.85   

Weighted average number of shares of common stock:

        

Basic

     30,442        32,986        31,084        33,063   

Diluted

     120,392        122,298        120,832        122,384   


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Taylor Morrison Home Corporation

Condensed Consolidated Balance Sheets

(In thousands)

 

     December 31,
2016
     December 31,
2015
 
     (Unaudited)         

Assets

     

Cash and cash equivalents

   $ 300,179       $ 126,188   

Restricted cash

     1,633         1,280   

Real estate inventory:

     

Owned inventory

     3,010,967         3,118,866   

Real estate not owned under option agreements

     6,252         7,921   
  

 

 

    

 

 

 

Total real estate inventory

     3,017,219         3,126,787   

Land deposits

     37,233         34,113   

Mortgage loans held for sale

     233,184         201,733   

Hedging assets

     2,291         —     

Prepaid expenses and other assets, net

     73,425         80,348   

Other receivables, net

     115,246         120,729   

Investments in unconsolidated entities

     157,909         128,448   

Deferred tax assets, net

     206,634         233,488   

Property and equipment, net

     6,586         7,387   

Intangible assets, net

     3,189         4,248   

Goodwill

     66,198         57,698   
  

 

 

    

 

 

 

Total assets

   $ 4,220,926       $ 4,122,447   
  

 

 

    

 

 

 

Liabilities

     

Accounts payable

   $ 136,636       $ 151,861   

Accrued expenses and other liabilities

     209,202         191,452   

Income taxes payable

     10,528         37,792   

Customer deposits

     111,573         92,319   

Senior notes, net

     1,237,484         1,235,157   

Loans payable and other borrowings

     150,485         134,824   

Revolving credit facility borrowings, net

     —           115,000   

Mortgage warehouse borrowings

     198,564         183,444   

Liabilities attributable to real estate not owned under option agreements

     6,252         7,921   
  

 

 

    

 

 

 

Total liabilities

   $ 2,060,724       $ 2,149,770   
  

 

 

    

 

 

 

Stockholders’ Equity

     

Total stockholders’ equity

     2,160,202         1,972,677   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 4,220,926       $ 4,122,447   
  

 

 

    

 

 

 


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Homes Closed:    Three Months Ended December 31,  
     2016      2015  
(Dollars in thousands)    Homes      Value      Homes      Value  

East

     984       $ 380,297         749       $ 290,761   

Central

     636         306,866         654         297,249   

West

     805         467,204         665         346,788   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     2,425       $ 1,154,367         2,068       $ 934,798   
  

 

 

    

 

 

    

 

 

    

 

 

 
Net Sales Orders:    Three Months Ended December 31,  
     2016      2015  
(Dollars in thousands)    Homes      Value      Homes      Value  

East

     729       $ 287,766         526       $ 208,458   

Central

     429         199,854         392         183,344   

West

     543         308,099         522         279,133   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     1,701       $ 795,719         1,440       $ 670,935   
  

 

 

    

 

 

    

 

 

    

 

 

 
Homes Closed:    Twelve Months Ended December 31,  
     2016      2015  
(Dollars in thousands)    Homes      Value      Homes      Value  

East

     2,795       $ 1,077,241         2,065       $ 809,324   

Central

     2,050         974,841         2,140         990,925   

West

     2,524         1,373,439         2,106         1,089,719   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     7,369       $ 3,425,521         6,311       $ 2,889,968   
  

 

 

    

 

 

    

 

 

    

 

 

 
Net Sales Orders:    Twelve Months Ended December 31,  
     2016      2015  
(Dollars in thousands)    Homes      Value      Homes      Value  

East

     3,039       $ 1,175,440         2,124       $ 794,356   

Central

     1,837         848,389         2,018         912,623   

West

     2,628         1,457,923         2,539         1,262,101   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     7,504       $ 3,481,752         6,681       $ 2,969,080   
  

 

 

    

 

 

    

 

 

    

 

 

 
Sales Order Backlog:    As of December 31,  
     2016      2015  
(Dollars in thousands)    Homes      Value      Homes      Value  

East

     1,183       $ 508,101         875       $ 358,978   

Central

     817         419,359         1,030         519,251   

West

     1,131         604,450         1,027         514,744   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     3,131       $ 1,531,910         2,932       $ 1,392,973   
  

 

 

    

 

 

    

 

 

    

 

 

 
Average Active Selling Communities:    Three Months Ended
December 31,
     Twelve Months Ended
December 31,
 
     2016      2015      2016      2015  

East

     119         102         122         91   

Central

     107         106         109         98   

West

     73         78         78         70   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     299         286         309         259   
  

 

 

    

 

 

    

 

 

    

 

 

 


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Average Selling Price of Homes Closed:    Three Months Ended
December 31,
     Twelve Months Ended
December 31,
 
(Dollars in thousands)    2016      2015      2016      2015  

East

   $ 386       $ 388       $ 385       $ 392   

Central

     482         455         476         463   

West

     580         521         544         517   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 476       $ 452       $ 465       $ 458   
  

 

 

    

 

 

    

 

 

    

 

 

 


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Reconciliation of Non-GAAP Financial Measures

The following tables set forth a reconciliation between our home closings gross margin and our adjusted home closings gross margin, our net income from continuing operations and EBITDA and adjusted EBITDA, our net income from continuing operations to our adjusted net income from continuing operations, our earnings per share and adjusted earnings per share, and a reconciliation of our net homebuilding debt to total capitalization ratio. Adjusted home closings gross margin is a non-GAAP financial measure calculated based on home closings gross margin, excluding impairments, if any, and, separately excluding both impairments, if any, and capitalized interest amortization. Adjusted EBITDA is a non-GAAP financial measure that measures performance by adjusting net income from continuing operations to exclude interest amortized to cost of sales and interest income (net), income taxes, depreciation and amortization, non-cash compensation expense and loss on extinguishment of debt, if any. Adjusted net income from continuing operations is a non-GAAP financial that measures performance by adjusting net income from continuing operations to exclude impairments (if any) net of tax benefit. Adjusted earnings per share is a non-GAAP financial measure that measures performance by adjusting to exclude impairments (if any) net of tax benefit. Net homebuilding debt to capitalization, which we calculate by dividing (i) total debt, less unamortized debt issuance costs and mortgage warehouse borrowings, net of unrestricted cash and cash equivalents, by (ii) total capitalization (the sum of net homebuilding debt and total stockholders’ equity), is a non-GAAP financial measure. Management uses these non-GAAP financial measures to evaluate our performance on a consolidated basis as well as the performance of our regions. We use the ratio of net homebuilding debt to total capitalization as an indicator of overall leverage. In the future we may include additional adjustments in the above described non-GAAP financial measures, to the extent we deem them appropriate and useful to management and investors.

We believe adjusted home closings gross margin is useful to investors because it allows investors to evaluate the performance of our homebuilding operations without the often varying effects of interest costs capitalized. We believe adjusted EBITDA, adjusted net income from continuing operations, and adjusted earnings per share each provide useful information to investors regarding our results of operations because each allows investors to evaluate our performance without the effects of various items we do not believe are characteristic of our ongoing operations or performance and also because each assists both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted EBITDA provides an indicator of general economic performance that is not affected by fluctuations in interest rates or effective tax rates, levels of depreciation or amortization, or non-recurring items. We use the ratio of net homebuilding debt to total capitalization to evaluate our performance against other companies in the homebuilding industry and believe it is also relevant and useful to investors for that reason.

These measures are considered non-GAAP financial measures and should be considered in addition to, rather than as a substitute for, the comparable U.S. GAAP financial measures as a measure of our operating performance or liquidity. Although other companies in the homebuilding industry report similar information, the methods used may differ. We urge investors to understand the methods used by other companies in the homebuilding industry to calculate net income, gross margins and total debt to capitalization and any adjustments to such amounts before comparing our measures to those of such other companies.


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Home Closings Gross Margin Reconciliation — Continuing Operations

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
(Dollars in thousands)    2016     2015     2016     2015  

Home closings revenue

   $ 1,154,367      $ 934,798      $ 3,425,521      $ 2,889,968   

Cost of home closings

     949,015        764,131        2,801,739        2,358,823   
  

 

 

   

 

 

   

 

 

   

 

 

 

Home closings gross margin

     205,352        170,667        623,782        531,145   

Impairment charge

     3,473        —          3,473        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Home closings gross margin, adjusted for impairment

     208,825        170,667        627,255        531,145   
  

 

 

   

 

 

   

 

 

   

 

 

 

Capitalized interest amortization

     30,819        24,560        90,851        83,163   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted home closings gross margin

   $ 239,644      $ 195,227      $ 718,106      $ 614,308   
  

 

 

   

 

 

   

 

 

   

 

 

 

Home closings gross margin as a percentage of home closings revenue

     17.8     18.3     18.2     18.4

Home closings gross margin, adjusted for impairment as a percentage of home closings revenue

     18.1     18.3     18.3     18.4

Adjusted home closings gross margin as a percentage of home closings revenue

     20.8     20.9     21.0     21.3

Adjusted EBITDA Reconciliation

 

     Three Months Ended December 31,  
(Dollars in thousands)    2016     2015  

Net income from continuing operations

   $ 76,111      $ 64,989   

Interest income, net

     (35     (26

Amortization of capitalized interest

     30,819        24,560   

Income tax provision

     40,945        35,568   

Depreciation and amortization

     972        1,180   
  

 

 

   

 

 

 

EBITDA

   $ 148,812      $ 126,271   

Non-cash compensation expense

     1,954        2,169   
  

 

 

   

 

 

 

Adjusted EBITDA

   $ 150,766      $ 128,440   
  

 

 

   

 

 

 


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Adjusted Earnings Per Share Reconciliation

 

     Three Months Ended
December 31,
     Twelve Months Ended
December 31,
 
(Dollars in thousands, except per share data)    2016      2015      2016      2015  

Net income from continuing operations available to TMHC - basic

   $ 19,281       $ 17,667       $ 52,616       $ 61,049   

Impairment charge, net of tax benefit

     585         —           585         —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted net income from continuing operations available to TMHC - basic

   $ 19,866       $ 17,667       $ 53,201       $ 61,049   

Net income from continuing operations attributable to non-controlling interest – Principal Equityholders

     56,392         47,440         152,653         123,909   

Impairment charge, net of tax benefit

     1,708         —           1,708         —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted net income from continuing operations attributable to non-controlling interest - Principal Equityholders

   $ 58,100       $ 47,440       $ 154,361       $ 123,909   

Adjusted earnings per common share — basic:

   $ 0.65       $ 0.53       $ 1.71       $ 1.38   

Adjusted earnings per common share — diluted:

   $ 0.65       $ 0.53       $ 1.71       $ 1.38   

Net Homebuilding Debt to Capitalization Ratio Reconciliation

 

(Dollars in thousands)    As of
December 31,
2016
 

Total debt

   $ 1,586,533   

Unamortized debt issuance costs

     12,516   

Less mortgage warehouse borrowings

     198,564   
  

 

 

 

Total homebuilding debt

   $ 1,400,485   

Less cash and cash equivalents

     300,179   
  

 

 

 

Net homebuilding debt

   $ 1,100,306   

Total equity

     2,160,202   
  

 

 

 

Total capitalization

   $ 3,260,508   
  

 

 

 

Net homebuilding debt to capitalization ratio

     33.7