Taylor Morrison Home Corporation (NYSE:TMHC) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 08:00 pm ET


Taylor Morrison Home Corporation (NYSE:TMHC) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Taylor Morrison Second Quarter 2020 Earnings Conference Call. [Operator Instructions] I would now like to introduce Mr. Jason Lenderman, Vice President, Investor Relations and Treasurer.

Jason Lenderman

Thank you, and welcome, everyone, to Taylor Morrison's second quarter 2020 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 a financial review of our results. Then Sheryl will conclude with the outlook for the business, after which, we will 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.

Sheryl Palmer

Thank you, Jason, and good morning, everyone. We appreciate you joining us today. We continue to find ourselves navigating these uncertain times, and I sincerely hope that you have all been healthy and safe and will continue to be.

Earlier this month, we provided an update on our second quarter results as a part of our debt refinancing project, which Dave will discuss in more detail soon. And at that time, we expressed how pleased we were with how the business has performed in the last few months after the initial impact of COVID-19. I'm happy to report that those trends have continued through July. And with two more days left in the month, we're on track to deliver year-over-year growth in net sales of approximately 80%. That sales success translates to a projected pace of nearly four sales per outlet per month, about 60% growth year-over-year.

The resiliency of the business has been remarkable and something that has produced great pride within the organization. We pivoted quickly, established new norms and aggressively pursued strategies to ensure the safety of our team members and customers conforming to the necessary social distancing practices. It's because of this flexibility that we were able to deliver our impressive second quarter results. So let me share some key highlights.

We finished the quarter with 3,453 net sales, representing year-over-year growth of 23%. April represented our lowest sales point during the pandemic, where we were down year-over-year by 36%. May was up 17%, and then June was an extraordinary up 94% on a year-over-year basis. The consumer data driving these numbers is worth sharing. Three of our largest consumer groups saw overly quarterly