Taylor Morrison Home (TMHC) 8-K Results of Operations and Financial Condition

Exhibit 99.1

News Release

CONTACT: Erin Willis

Taylor Morrison Home Corporation

(480) 734-2060

investor@taylormorrison.com

Taylor Morrison Reports Third Quarter Revenue of $759 Million,

Net Income of $66.2 Million and an EBT Margin of 12.3%

• Diluted earnings per share of $0.54 on net income of $66.2 million, representing an increase of 26% over the prior year quarter’s net income

• Consolidated home closings revenue increased 20% to $745.6 million

• Consolidated and U.S. net sales orders increased 37% and 36%, respectively

• Consolidated and U.S. average price of homes closed increased 10% to $427,000 and 16% to $463,000, respectively

SCOTTSDALE, Ariz., November 5, 2014 –– Taylor Morrison Home Corporation (NYSE:TMHC) today reported third quarter revenue of $759 million, net income of $66.2 million and earnings per share of $0.54.

“I am pleased to say that through the deliberate and consistent application of our four-pillar strategy of offering core community locations to mostly move-up buyers, while optimizing price and volume and maximizing overhead efficiency, we continue to execute well and the third quarter results add to our solid year-to-date performance,” said Taylor Morrison President and CEO Sheryl Palmer. “These results show that our long-term strategy has continued to be a profitable one and that our consistent execution of this strategy has proven successful.”

3rd Quarter 2014 Key Business Highlights

• Consolidated community count increased 30% to 226 average communities from 174 year-over-year, driven by a 35% increase in our U.S. operations

• Consolidated net sales orders increased 37% year-over-year to 1,591. Net sales orders in the U.S. increased 36% while sales in Canada increased 43%

• Overall average monthly absorption pace was 2.4, up 9% from 2.2 in the prior year quarter

• The average selling price for consolidated homes sold increased $4,000 year-over-year to $457,000

• U.S. backlog increased 13% in units and 34% in value

• Consolidated backlog of homes under contract was 3,604 units with a sales value of $1.7 billion as of September 30, 2014, representing an 18% increase in value over the prior year quarter

• Consolidated cancellations as a percentage of gross sales orders was 12.1%, a 19% improvement from the prior year quarter

• Consolidated home closings increased 9% to 1,748. Home closings in our U.S. operations increased 11%, while closings in our Canadian operations increased 2%

• Consolidated average price of homes closed increased 10% year-over-year to $427,000 in the quarter with a 5% sequential quarterly decrease due to higher mix of wholly owned high-rise closings. Average price of homes closed in the U.S. increased 16% to $463,000 while homes in Canada decreased 11% to $311,000

• Mortgage operations reported gross profit of $3.4 million on revenue of $8.4 million

Quarterly Financial Comparison

($ millions)
	Q3 2014			Q3 2013			Q3 2014 vs. Q3 2013
Total Revenue	$	759.0		$	634.4			20	%
Home Closings Revenue	$	745.6		$	622.1			20	%
Adjusted Home Closings Gross Margin	$	171.3 23.0	%	$	148.0 23.8	%		16 (80	%  ) bps
Total Home Closings Gross Margin	$	149.0 20.0	%	$	132.4 21.3	%		13 (130	%  ) bps
SG&A % of Home Closings Revenue	$	68.8 9.2	%	$	59.0 9.5	%		17 30 bps improvement	%
Equity in Income of Unconsolidated Entities	$	11.8		$	9.4			25	%

We ended the quarter with home building inventories of $2.8 billion. We had 4,277 homes in inventory compared to 4,112 homes at the end of the prior year quarter. Homes in inventory at the end of the quarter consisted of: 2,706 sold units, 300 model homes and 1,271 inventory units, of which only 275 were finished.

We ended the third quarter of 2014 with $281.5 million of cash, excluding $12.9 million of restricted cash. We owned or controlled approximately 43,000 lots at September 30, 2014.

Share Repurchase Authorization

We are announcing today that our Board of Directors has authorized the repurchase of up to $50.0 million of the Company’s Class A Common Stock through December 31, 2015 in open market purchases, privately negotiated transactions or other transactions. The stock repurchase program will be subject to prevailing market conditions and other considerations, including our liquidity, the terms of our debt instruments, planned land investment and development spending, acquisition and other investment opportunities and ongoing capital requirements.

Full Year 2014 Business Outlook

• Average community count – expected to be approximately 210

• Home closings – expected to be near the low end of the range, which is 6,700

• Home closings margins – expected to be down 50 bps relative to 2013

• SG&A – expected to be under 10%, likely in the mid to high 9% range, as a percentage of home closing revenue

• Income from unconsolidated joint ventures – expected to be between $24 million and $26 million

Earnings Webcast

A public webcast to discuss third quarter 2014 earnings will be held at 8:30 a.m. Eastern Time on Wednesday, November 5, 2014 on our investor relations website at investors.taylormorrison.com. A webcast replay will also be available on the site later today.

About Taylor Morrison

Headquartered in Scottsdale, Arizona, Taylor Morrison Home Corporation (NYSE:TMHC) operates in the U.S. under the Taylor Morrison and Darling Homes brands and in Canada under the Monarch brand. Taylor Morrison is a builder and developer of single-family detached and attached homes, serving a wide array of customers including first-time, move-up, luxury and 55+. Taylor Morrison divisions operate in Arizona, California, Colorado, Florida and Texas. Darling Homes serves move-up and luxury homebuyers in Texas. Monarch, Canada’s oldest homebuilder, builds homes for first-time and move-up buyers in Toronto and Ottawa as well as high rise condominiums in Toronto.

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

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: interest rate changes and the availability of mortgage financing; continued volatility in the debt and equity markets; competition within the industries in which we operate; the availability and cost of land and other raw materials used by us in our homebuilding operations; the impact of any changes to our strategy in responding to continuing adverse conditions in the industry, including any changes regarding our land positions; the availability and cost of insurance covering risks associated with our businesses; shortages and the cost of labor; weather related slowdowns; slow growth initiatives and/or local building moratoria; governmental regulation directed at or affecting the housing market, the homebuilding industry or construction activities; uncertainty in the mortgage lending industry, including revisions to underwriting standards and repurchase requirements associated with the sale of mortgage loans; the interpretation of or changes to tax, labor and environmental laws; economic changes nationally or in our local markets, including inflation, deflation, changes in consumer confidence and preferences and the state of the market for homes in general; legal or regulatory proceedings or claims; required accounting changes; terrorist acts and other acts of war; and other factors of national, regional and global scale, including those of a political, economic, business and competitive nature. 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).

Taylor Morrison Home Corporation

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts, unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Home closings revenue	$	745,578		$	622,126		$	1,890,057		$	1,484,928
Land closings revenue		5,027			4,524			23,100			18,994
Mortgage operations revenue		8,433			7,791			22,870			20,896
Total revenues		759,038			634,441			1,936,027			1,524,818
Cost of home closings		596,606			489,713			1,498,906			1,172,748
Cost of land closings		3,985			6,120			17,442			19,417
Mortgage operations expenses		5,057			4,385			13,641			11,945
Total cost of revenues		605,648			500,218			1,529,989			1,204,110
Gross margin		153,390			134,223			406,038			320,708
Sales, commissions and other marketing costs		47,186			37,029			124,303			97,238
General and administrative expenses		21,572			21,944			66,274			68,193
Equity in income of unconsolidated entities		(11,756	)		(9,425	)		(22,497	)		(21,049	)
Interest expense (income), net		322			(1,332	)		747			(1,119	)
Other expense, net		3,025			1,304			10,296			2,588
Loss on extinguishment of debt		—			—			—			10,141
Indemnification and transaction expense (income)		21			396			(142	)		188,320
Income (loss) before income taxes		93,020			84,307			227,057			(23,604	)
Income tax provision (benefit)		26,845			31,675			64,087			(22,287	)
Net income (loss)		66,175			52,632			162,970			(1,317	)
Net income attributable to non-controlling interests - joint ventures		(47	)		471			(386	)		286
Net income (loss) before non-controlling interests - Principal Equityholders		66,128			53,103			162,584			(1,031	)
Net (income) loss attributable to non-controlling interests - Principal Equityholders		(48,282	)		(38,840	)		(118,990	)		20,621
Net income available to Taylor Morrison Home Corporation	$	17,846		$	14,263		$	43,594		$	19,590
Earnings per common share:
Basic	$	0.54		$	0.43		$	1.33		$	0.60
Diluted	$	0.54		$	0.43		$	1.33		$	0.60
Weighted average number of shares of common stock:
Basic		32,956			32,858			32,896			32,832
Diluted		122,338			122,317			122,345			122,317

Taylor Morrison Home Corporation

Condensed Consolidated Balance Sheets

(In thousands)

	September 30,		December 31,
	2014		2013
	(Unaudited)
Assets
Cash and cash equivalents	$	281,528	$	389,181
Restricted cash		12,871		24,814
Real estate inventory:
Owned inventory		2,831,874		2,243,744
Real estate not owned under option agreements		11,408		18,595
Total real estate inventory		2,843,282		2,262,339
Land deposits		48,816		43,739
Loans receivable		42,125		33,395
Mortgages receivable		72,919		95,718
Tax indemnification receivable		5,383		5,216
Prepaid expenses and other assets, net		112,338		98,870
Other receivables, net		107,429		56,213
Investments in unconsolidated entities		216,777		139,550
Deferred tax assets, net		247,637		244,920
Property and equipment, net		7,871		7,515
Intangible assets, net		10,789		13,713
Goodwill		23,375		23,375
Total assets	$	4,033,140	$	3,438,558
Liabilities
Accounts payable	$	142,910	$	121,865
Accrued expenses and other liabilities		234,419		214,500
Income taxes payable		19,857		47,540
Customer deposits		112,208		94,670
Senior notes		1,389,004		1,039,497
Loans payable and other borrowings		233,507		282,098
Revolving credit facility		150,000		—
Mortgage borrowings		48,573		74,892
Liabilities attributable to consolidated option agreements		11,408		18,595
Total liabilities	$	2,341,886	$	1,893,657
Stockholders’ Equity
Total stockholders’ equity		1,691,254		1,544,901
Total liabilities and stockholders’ equity	$	4,033,140	$	3,438,558

Homes Closed:	Three Months Ended September 30,
	2014				2013
(Dollars in thousands)	Homes		Value		Homes		Value
East		800	$	341,038		713	$	275,222
West		531		274,698		485		203,480
Subtotal U.S.		1,331	$	615,736		1,198		478,702
Canada		417		129,842		408		143,423
Subtotal		1,748	$	745,578		1,606		622,125
Unconsolidated joint ventures		108		36,034		92		25,653
Total		1,856	$	781,612		1,698	$	647,778
Homes Closed:	Nine Months Ended September 30,
	2014				2013
(Dollars in thousands)	Homes		Value		Homes		Value
East		2,301	$	949,494		1,986	$	737,790
West		1,374		704,396		1,268		499,521
Subtotal U.S.		3,675	$	1,653,890		3,254	$	1,237,311
Canada		671		236,167		705		247,616
Subtotal		4,346	$	1,890,057		3,959	$	1,484,927
Unconsolidated joint ventures		171		62,773		234		70,851
Total		4,517	$	1,952,830		4,193	$	1,555,778
Net Sales Orders:	Three Months Ended September 30,
	2014				2013
(Dollars in thousands)	Homes		Value		Homes		Value
East		938	$	385,937		698	$	300,278
West		446		247,642		320		157,977
Subtotal U.S.		1,384	$	633,579		1,018	$	458,255
Canada		207		92,784		145		67,750
Subtotal		1,591	$	726,363		1,163	$	526,005
Unconsolidated joint ventures		12		4,385		31		11,516
Total		1,603	$	730,748		1,194	$	537,521
Net Sales Orders:	Nine Months Ended September 30,
	2014				2013
(Dollars in thousands)	Homes		Value		Homes		Value
East		2,868	$	1,182,247		2,618	$	998,612
West		1,565		859,467		1,352		605,012
Subtotal U.S.		4,433	$	2,041,714		3,970	$	1,603,624
Canada		529		240,839		470		215,023
Subtotal		4,962	$	2,282,553		4,440	$	1,818,647
Unconsolidated joint ventures		27		9,961		60		24,428
Total		4,989	$	2,292,514		4,500	$	1,843,075
Sales Order Backlog:	As of September 30,
	2014				2013
(Dollars in thousands)	Homes		Value		Homes		Value
East		2,111	$	978,999		1,834	$	750,158
West		813		494,671		746		349,143
Subtotal U.S.		2,924	$	1,473,670		2,580	$	1,099,301
Canada		680		261,073		1,104		372,916
Subtotal		3,604	$	1,734,743		3,684	$	1,472,217
Unconsolidated joint ventures		404		137,369		732		251,186
Total		4,008	$	1,872,112		4,416	$	1,723,403
Average Active Selling Communities:	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
East		159		119		148		121
West		55		40		53		35
Subtotal U.S.		214		159		201		156
Canada		12		15		13		15
Subtotal		226		174		214		171
Unconsolidated joint ventures		3		4		3		4
Total		229		178		217		175
Average Selling Price of Homes Closed:	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2014		2013		2014		2013
East	$	426	$	386	$	413	$	371
West		517		420		513		394
Subtotal U.S.	$	463	$	400	$	450	$	380
Canada		311		352		352		351
Subtotal	$	427	$	387	$	435	$	375
Unconsolidated joint ventures		334		279		367		303
Total	$	421	$	381	$	432	$	371

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. Adjusted home closings gross margin is a non-GAAP financial measure calculated based on gross margins, excluding impairments and capitalized interest amortization. Management uses adjusted home closings gross margins to evaluate our performance on a consolidated basis as well as the performance of our regions. 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.

This measure is considered a non-GAAP financial measure 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. 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 and gross margins and any adjustments to such amounts before comparing our measures to those of such other companies.

Adjusted Gross Margin Reconciliation

	Three Months Ended September 30,
(Dollars in thousands)	2014			2013
Home closings revenue	$	745,578		$	622,126
Cost of home closings		596,606			489,713
Home closings gross margin		148,972			132,413
Add:
Capitalized interest amortization		22,309			15,570
Adjusted home closings gross margin	$	171,281		$	147,983
Home closings gross margin as a percentage of home closings revenue		20.0	%		21.3	%
Adjusted home closings gross margin as a percentage of home closings revenue		23.0	%		23.8	%
	Nine Months Ended September 30,
(Dollars in thousands)	2014			2013
Home closings revenue	$	1,890,057		$	1,484,928
Cost of home closings		1,498,906			1,172,748
Home closings gross margin		391,151			312,180
Add:
Capitalized interest amortization		50,430			34,913
Adjusted home closings gross margin	$	441,581		$	347,093
Home closings gross margin as a percentage of home closings revenue		20.7	%		21.0	%
Adjusted home closings gross margin as a percentage of home closings revenue		23.4	%		23.4	%