Homebuilder Taylor Morrison Files For IPO

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This is something you have not heard in about a decade: A HOMEBUILDER IPO! It sounds hard to believe, but with two of the best 10 S&P 500 performers of 2012 being homebuilders maybe this should be no surprise. Taylor Morrison Home Corporation has filed to come public via an initial public offering.

No terms have been set other than that the filing would be for up to $250 million worth of common stock. Its stock ticker is being indicated as TMHC but the company has not selected whether this would be on the New York Stock Exchange or on the NASDAQ. The underwriters have been designated as Credit Suisse, Citigroup, and a firm called Zelman Partners.

The homebuilder claims that it would be the sixth largest public homebuilder in North America based on 2011 revenues. Taylor Morrison is based in Scottsdale, Arizona and its regions are as follows:

  • East at 46% of net sales from Houston, Austin, North Florida and West Florida
  • West at 36% of net sales from Phoenix, Northern California, Southern California and Denver
  • Canada at 18% of sales from Ontario, primarily in the Greater Toronto Area and also in Ottawa and Kitchener-Waterloo

During the nine months ended September 30, 2012, Taylor Morrison closed on 2,586 homes, consisting of 1,880 homes in the United States and 706 homes in Canada (including 204 homes in unconsolidated joint ventures) with an average sales price across North America of $347,000. During the same nine months it generated $879.0 million in revenues, $81.8 million in net income and $125.1 million in Adjusted EBITDA. In the United States, for the first nine months sales orders increased approximately 47% as compared to the same period in 2011. It also said that it averaged 3.0 sales per active selling community per month compared to an average of 1.7 sales per active selling community per month for the same period in 2011.

As of September 30, 2012, Taylor Morrison offered homes in 122 active selling communities and had a backlog of 4,205 homes sold but not closed, including 903 homes in unconsolidated joint ventures, with an associated backlog sales value of approximately $1.5 billion.