Taylor Morrison Home (TMHC) 8-K Entry into a Material Definitive Agreement

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
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
Total assets	$	4,033,140		$	(137,143	)	$	3,895,997
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
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	)
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
Total stockholders’ equity		1,691,254			57,379			1,748,633
Total liabilities and stockholders’ equity	$	4,033,140		$	(137,143	)	$	3,895,997

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
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
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			—
Income from continuing operations before income taxes		227,057			(44,542	)		182,515
Income tax provision		64,087			(13,486	)		50,601
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	)
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	)
Net income available to Taylor Morrison Home Corporation	$	43,594		$	(8,396	)	$	35,198
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
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
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
Income from continuing operations before income taxes		97,936			(93,391	)		4,545
Income tax provision (benefit)		3,068			(26,878	)		(23,810	)
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
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
Net income available to Taylor Morrison Home Corporation	$	45,420		$	(15,492	)	$	29,928
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
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
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
Income from continuing operations before income taxes		170,551			(98,894	)		71,657
Income tax benefit		(260,297	)		(24,001	)		(284,298	)
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	)
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	)
Net income available to Taylor Morrison Home Corporation	$	—		$	—		$	—
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
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
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
Income (loss) from continuing operations before income taxes		30,798			(42,096	)		(11,298	)
Income tax provision (benefit)		4,031			(16,036	)		(12,005	)
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	)
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
Net income available to Taylor Morrison Home Corporation	$	—		$	—		$	—
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
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
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	)
Income from continuing operations before income taxes		70,901			(59,002	)		11,899
Income tax provision		20,881			(16,652	)		4,229
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	)
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	)
Net income available to Taylor Morrison Home Corporation	$	—		$	—		$	—
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.