Taylor Morrison Home Corp (NYSE: TMHC) reported Q1 EPS of $0.33, $0.06 better than the analyst estimate of $0.27. Revenue for the quarter came in at $519.2 million versus the consensus estimate of $512.6 million.

“We had a great start to the year, building upon strong results in 2013,” said Sheryl Palmer, President and CEO. “The excellent results achieved again this quarter, we believe, are due to our strategic focus on the move-up buyer, our land acquisition and development strategy that enables greater financial flexibility and our ability to execute efficiently in both our U.S. and Canadian operations. Our recently announced joint venture with Oaktree Capital Management and TPG to acquire the Marblehead development in San Clemente, California further highlights our opportunistic land acquisition strategy.”

Community count increased 20.6% to 202 from 167 in the first quarter of last year, driven by a strong increase in U.S. operations. Net sales orders were relatively flat at 1,662 in the first quarter of 2014 compared to the prior year quarter at 1,681. Net sales orders in the Company’s U.S. operations decreased 2.3%, partially offset by a 12.1% sales order improvement in the Company’s Canadian operations. The Company’s overall monthly absorption pace was 2.7 net sales orders per community in the first quarter of 2014 compared to 2.2 in the fourth quarter of 2013. Our average selling price for homes under contract in the first quarter of 2014 increased 17.1% over the same quarter last year.

The Company’s U.S. backlog of homes under contract was 2,625 homes with a sales value of $1.3 billion as of March 31, 2014 compared with 2,506 homes with a sales value of $993.0 million as of March 31, 2013 representing a 21.4% increase in average selling price in backlog.

The first quarter 2014 cancellation rate, representing cancelled sales orders divided by gross sales orders, decreased to 10.6% in first quarter of 2014, compared to 11.1% in the first quarter of 2013. The Company’s sales order backlog of homes under contract decreased 9.9% to 3,490 homes with a sales value of $1.5 billion as of March 31, 2014, compared with 3,872 homes with a sales value of $1.4 billion as of March 31, 2013. The March 31, 2013 backlog included 421 wholly-owned high-rise units, which closed later in 2013, resulting in timing fluctuations in the backlog.

Guidance and Outlook

“Our guidance for fiscal year 2014 remains unchanged,” said Dave Cone, Vice President and Chief Financial Officer. “We anticipate community count to increase 25% to 30% with a 15% to 20% increase in closings. Home closings margin is expected to be flat relative to 2013 with accretion expected in the U.S. operations offset by the decline in the Canadian home closings margin. SG&A is expected to be under 10% as a percentage of homebuilding revenue for the year. Income from unconsolidated joint ventures is expected to be between $16 million and $20 million.”

For the second quarter of 2014, community count growth is anticipated to increase by 20% to 25% and closings to be flat year-over-year. Income from unconsolidated joint ventures is anticipated to be between $5 million and $6 million.

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