Taylor Morrison Home Corporation (NYSE:TMHC) Q3 2019 Earnings Conference Call - Final Transcript

Oct 30, 2019 • 08:30 am ET

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Taylor Morrison Home Corporation (NYSE:TMHC) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, and welcome to Taylor Morrison's Third Quarter 2019 Earnings Conference Call. [Operator instructions] As a reminder, this conference call is being recorded. I would now like to introduce Mr. Jason Lenderman, Vice President, Investor Relations and Treasury.

Executive
Jason Lenderman

Thank you, and welcome everyone to Taylor Morrison's third quarter 2019 earnings conference call. With me today are Sheryl Palmer, Chairman and Chief Executive Officer and Dave Cone, Executive Vice President and Chief Financial Officer. Sheryl will begin the call with an overview of our business performance and our strategic priorities. Dave, will take you through the financial review of our results, along with our guidance.

Then Sheryl will conclude with the outlook for the business, after which, we'll be happy to take your questions. Before I turn the call over to Sheryl, let me remind you that today's call, including the question-and-answer session includes forward-looking statements that are subject to the Safe Harbor statement for forward-looking information that you will find in today's news release. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include but are not limited to those factors identified in the release and in our filings with the Securities and Exchange Commission.

And we do not undertake any obligation to update our forward-looking statements. Now, let me turn the call over to Sheryl Palmer.

Executive
Sheryl Palmer

Thank you, Jason, and good morning, everyone. We appreciate you joining us today as we share our results for the third quarter of 2019. It was another successful quarter for Taylor Morrison as we met or exceeded our guidance in each of our key metrics. We finished the quarter with 2,540 net orders representing a substantial 39% increase compared to the same quarter last year.

In mid-September, we released our July and August sales sharing our year-over-year order growth of 30% for the first two months of the quarter, nicely illustrating the build of that trend that we saw as the quarter progressed with September, up more than 60% year-over-year. This growth in sales was driven by strength across all regions as well as all price points. All three of our regions had sales orders up at least 20% led by the East, which was up nearly 64%. Average community count in the third quarter was 346, leading to a sales pace of 2.4 for the quarter. This compares to a sales pace of 2.2 in Q3 of 2018 and keeps us on track to achieve an annual sales pace in line or slightly better year-over-year. As we talked about last quarter, our out-performance on sales this year has impacted our community count as we're selling out of community's faster than we anticipated. And we expect that could continue into the fourth quarter. We delivered 2,296 closings, which is 9% higher than our results for last year and in line with our guidance for the quarter.

This growth was consistent across geographies with all three regions up