Taylor Morrison Home (NYSE: TMHC) reported Q4 EPS of $1.06, $0.05 better than the analyst estimate of $1.01. Revenue for the quarter came in at $1.47 billion versus the consensus estimate of $1.43 billion.

Fiscal Year 2019 Highlights:

• Net sales orders were 10,517, a 25 percent increase over the prior year
• Average monthly sales pace per community was 2.5, compared to 2.3 for 2018
• Home closings were 9,964, an almost 14 percent increase over the prior year
• Total revenue was $4.8 billion, a 13 percent increase over the prior year
• Home closings gross margin adjusted for unusual items was 18.2 percent, while GAAP home closings gross margin was 17.0 percent

"To say that 2019 was a pivotal year in Taylor Morrison's history would be an understatement," said Sheryl Palmer, Chairman and CEO of Taylor Morrison. "We surpassed 10,000 sales orders for the first time, marking a significant milestone for us, and the sales momentum we saw build in 2019 has continued into 2020."

The Company finished Q4 with sales orders of 2,552, which was a 42 percent increase from the prior year quarter. This represented a sales pace per community for the quarter of 2.6, which was tied with Q2 as the highest pace for the year. Sales orders for fiscal year 2019 were 10,517, which represented a sales pace per community of 2.5 for the year. "The strength in sales orders during the fourth quarter was consistent across all geographies and consumer groups led by entry-level, first move-up and second move-up each seeing at least a 50 percent increase," said Palmer. "We're thrilled to see the sales success continuing into 2020, with a 46 percent growth in orders and a sales pace of more than 3.0 for January."

"We delivered 9,964 closings in 2019, an almost 14 percent increase over our results for the prior year and in-line with our most recent guidance," added Palmer. "I'm proud of the teams' ability to deliver such strong sales and closings amidst a transformational acquisition in the works."

The Company stated that they expect the acquisition of William Lyon Homes to close this week. "To support our continued growth we must think differently, operate differently and use our resources differently," added Palmer. "Effective upon closing, we've announced a new organizational structure that will provide greater line of sight into our corporate functions and help us streamline the regional areas given the added scale from William Lyon. Our regional structure will move from three to five and be led by Area Presidents from both Taylor Morrison and William Lyon. Through thoughtful and deliberate efforts, we\'ve been able to outline an extremely strong combined business and assure that we'll have the best organizational structure and portfolio in place for a positive future."

"For the year, home closings gross margin was 18.2 percent when adjusted for the impact of unusual items, while GAAP home closings gross margin was 17.0 percent," said Dave Cone, Executive Vice President and Chief Financial Officer. "We experienced certain unusual items during the quarter that impacted many of our key metrics. The impact to earnings before taxes included almost $50 million for an increase in our reserve related to remediating a warranty issue that impacted our Central region, $13 million for the write-off related to our Chicago exit, almost $11 million for transaction expenses related to both AV Homes and William Lyon Homes, $9 million for inventory impairments and almost $6 million related to the loss on extinguishment of debt due to the refinancing transactions earlier in the year. With all of this behind us, we're confident in how this positions the business and strengthens the balance sheet for the future."

First Quarter 2020 Business Outlook

• Average active community count is expected to be between 320 and 330
• Home closings are expected to be between 2,100 and 2,200
• GAAP home closings gross margin is expected to be about 18 percent
• SG&A as a percentage of home closings revenue is expected to be in the mid 11 percent range
• Effective tax rate is expected to be about 23.5 percent

"The 2020 year should prove exciting with the closing and integration of William Lyon, which will have a significant impact on our operating and financial metrics," said Cone. "As we mentioned in the William Lyon acquisition announcement in November of last year, we will be in a position to provide annual guidance on the combined business during our first quarter call in late April."

For earnings history and earnings-related data on Taylor Morrison Home (TMHC) click here.