TAYLOR MORRISON HOME CORPORATION For purposes of this "Management's Discussion and Analysis of Financial Condition and Results of Operations," the terms "the Company," "we," "us," or "our" refer toTaylor Morrison Home Corporation ("TMHC") and its subsidiaries. The Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our condensed consolidated financial statements included elsewhere in this quarterly report. Forward-Looking Statements This quarterly report includes certain forward-looking statements within the meaning of the federal securities laws regarding, among other things, our or management's intentions, plans, beliefs, expectations or predictions of future events, which are considered forward-looking statements. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business and operations strategy. These statements often include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate," "can," "could," "might," "project" or similar expressions. These statements are based upon assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors that we believe are appropriate under the circumstances. As you read this quarterly report, you should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions, including those described under the heading "Risk Factors" in the Annual Report and in our subsequent filings with theU.S. Securities and Exchange Commission (the "SEC"). Although we believe that these forward-looking statements are based upon reasonable assumptions and currently available information, you should be aware that many factors, including those described under the heading "Risk Factors" in the Annual Report and in our subsequent filings with theSEC , could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. Our forward-looking statements made herein are made only as of the date of this quarterly report. We expressly disclaim any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based, except as required by applicable law. Business Overview Our principal business is residential homebuilding and the development of lifestyle communities with operations geographically focused inArizona ,California ,Colorado ,Florida ,Georgia ,Nevada , North andSouth Carolina ,Oregon ,Texas , andWashington . We serve a wide array of consumer groups from coast to coast, including entry-level, move-up, and 50 plus lifestyle (formerly referred to as active adult) buyers, building single and multi-family attached and detached homes. Our homebuilding company operates under our Taylor Morrison,Darling Homes , and Esplanade brand names. We have an exclusive partnership withChristopher Todd Communities , a growingPhoenix -based developer of innovative, luxury rental communities to operate a "Build-to-Rent" homebuilding business. We serve as a land acquirer, developer, and homebuilder whileChristopher Todd Communities provides community design and property management consultation. We also operateUrban Form Development, LLC ("Urban Form"), which primarily develops and constructs multi-use properties consisting of commercial space, retail, and multi-family units. We have operations which provide financial services to customers through our wholly owned mortgage subsidiary, Taylor Morrison Home Funding, INC ("TMHF"), title services through our wholly owned title services subsidiary,Inspired Title Services, LLC ("Inspired Title"), and homeowner's insurance policies through our insurance agency,Taylor Morrison Insurance Services, LLC ("TMIS"). Our business as ofJune 30, 2021 is organized into multiple homebuilding operating components, and a financial services component, all of which are managed as four reportable segments: East, Central, West and Financial Services, as follows: EastAtlanta ,Charlotte ,Jacksonville ,Naples ,
Tampa CentralAustin ,Dallas ,Denver , andHouston WestBay Area ,Las Vegas ,Phoenix ,Portland ,
California Financial Services Taylor Morrison Home Funding, Inspired Title Services, and TaylorMorrison Insurance Services Community development includes the acquisition and development of land, which may include obtaining significant planning and entitlement approvals and completing construction of off-site and on-site utilities and infrastructure. We generally operate 26 -------------------------------------------------------------------------------- Table of Contents as community developers, but in some communities we operate solely as merchant builders, in which case we acquire fully entitled and developed lots. We remain disciplined in our underwriting to acquire land where we see opportunities to drive profitable growth over the full cycle, with the land acquisitions we are approving today largely expected to impact deliveries in the next 24 to 48 months. In our homebuilding operations, we either directly, or indirectly through our subcontractors, purchase our significant materials necessary to construct a home such as drywall, cement, steel, lumber, insulation and the other building materials. While these materials are generally widely available from a variety of sources, from time to time we experience material shortages on a localized basis which can substantially increase the price for such materials and our construction process can be slowed. As ofJune 30, 2021 , we employed approximately 2,900 full-time equivalent persons. Of these, approximately 2,450 were engaged in corporate and homebuilding operations, and the remaining approximately 450 were engaged in financial services.
Factors Affecting Comparability of Results
For the three and six months endedJune 30, 2020 , we recognized various costs relating to the acquisition ofWilliam Lyon Homes, Inc. ("WLH"). Such costs for the three months endedJune 30, 2020 include$18.7 million of transaction expenses, which have been included in Transaction expenses on our Condensed Consolidated Statement of Operations, and$32.1 million of purchase accounting related adjustments which have been recognized in Cost of home closings on our Condensed Consolidated Statement of Operations. For the six months endedJune 30, 2020 , those costs were$105.1 million of transaction expenses and$60.5 million of purchase accounting adjustments. We did not incur such costs for the three or six months endedJune 30, 2021 . Second Quarter 2021 Highlights (all comparisons are of the current quarter to the prior year quarter, unless otherwise indicated) : •Monthly absorptions increased 23 percent to 3.4 net sales orders per community. •Home closings gross margin increased 370 basis points to 19.1 percent. •Backlog increased 50 percent to 10,228 sold homes with a sales value of$5.7 billion , up 78 percent. •Homebuilding lot supply increased 13 percent to approximately 76,000 total lots owned and controlled. •Controlled lots as a percentage of total supply increased approximately 700 basis points to 35 percent. 27 -------------------------------------------------------------------------------- Table of Contents Results of Operations The following table sets forth our results of operations for the periods presented: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2021 2020 2021 2020 Statements of Operations Data: Home closings revenue, net$ 1,644,380 $
1,470,994
32,057 10,546 36,946 33,485
Financial services revenue 37,392 40,297 81,457 68,336
Amenity and other revenue 5,451 4,848 10,880 34,929
Total revenue 1,719,280 1,526,685 3,137,092 2,872,384
Cost of home closings 1,331,041 1,244,224 2,441,283 2,314,727
Cost of land closings 28,138 10,287 32,165 37,419
Financial services expenses 25,935 22,796 49,934 43,443
Amenity and other expenses 5,463 5,200 10,566 34,861
Gross margin 328,703 244,178 603,144 441,934
Sales, commissions and other marketing costs 97,560 94,038 183,512 180,365
General and administrative expenses 69,997 51,112 131,550 101,638
Equity in income of unconsolidated entities (2,126) (3,495) (7,787) (5,921)
Interest expense/(income), net 3 (337) (116) (897)
Other expense/(income), net 45 (696) 1,020 5,595
Transaction expenses - 18,712 - 105,086
Income before income taxes 163,224 84,844 294,965 56,068
Income tax provision 38,469 17,622 67,767 18,403
Net income before allocation to
non-controlling interests 124,755 67,222 227,198 37,665
Net income attributable to non-controlling
interests - joint ventures (608) (1,548) (5,030) (3,423)
Net income available to Taylor Morrison Home
Corporation $ 124,147 $
65,674
19.1 % 15.4 % 18.8 % 15.4 %
Sales, commissions and other marketing costs
as a percentage of home closings revenue, net 5.9 % 6.4 % 6.1 % 6.6 %
General and administrative expenses as a
percentage of home closings revenue, net 4.3 % 3.5 % 4.4 % 3.7 %
Non-GAAP Measures
In addition to the results reported in accordance with accounting principles
generally accepted in the United States ("GAAP"), we have provided information
in this quarterly report relating to: (i) adjusted income before income taxes
and related margin, (ii) EBITDA and adjusted EBITDA, (iii) adjusted net income
and adjusted earnings per share, (iv) net homebuilding debt to capitalization
ratio, and (v) adjusted home closings gross margin.
Adjusted income before income taxes (and related margin) is a non-GAAP financial
measure that reflects our income before income taxes excluding the impact of
purchase accounting adjustments related to the acquisition of William Lyon Homes
("WLH") and transaction expenses. EBITDA and Adjusted EBITDA are non-GAAP
financial measures that measure performance by adjusting net income before
allocation to non-controlling interests to exclude interest expense/(income),
net, amortization of capitalized interest, income taxes, depreciation and
amortization (EBITDA), non-cash compensation expense, if any, purchase
accounting adjustments relating to the acquisition of WLH and transaction
expenses. Adjusted net income and adjusted earnings per share are non-GAAP
financial measures that reflect the net income available to the Company
excluding the impact of purchase accounting adjustments relating to the
acquisition of WLH and, transaction expenses and the tax impact due to such
items. Net homebuilding debt to capitalization ratio is a non-GAAP financial
measure we calculate by dividing (i) total debt, less unamortized debt issuance
costs/premiums and mortgage warehouse borrowings, net of unrestricted cash and
cash equivalents, by (ii) total capitalization (the sum of net homebuilding debt
and total stockholders' equity). Adjusted home
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closings gross margin is a non-GAAP financial measure based on GAAP home
closings gross margin (which is inclusive of capitalized interest), excluding
purchase accounting adjustments relating to the acquisition of WLH.
Management uses these non-GAAP financial measures to evaluate our performance on
a consolidated basis, as well as the performance of our regions, and to set
targets for performance-based compensation. We also use the ratio of net
homebuilding debt to total capitalization as an indicator of overall leverage
and to evaluate our performance against other companies in the homebuilding
industry. A reconciliation of our forward-looking net homebuilding debt to
capitalization ratio to the most directly comparable GAAP financial measure
cannot be provided without unreasonable effort because of the inherent
difficulty of accurately forecasting the occurrence and financial impact of the
adjusting items necessary for such reconciliation that have not yet occurred,
are out of our control, or cannot be reasonably predicted. In the future, we may
include additional adjustments in the above-described non-GAAP financial
measures to the extent we deem them appropriate and useful to management and
investors.
We believe that adjusted income before income taxes and related margin, adjusted
net income and adjusted earnings per share, as well as EBITDA and adjusted
EBITDA, are useful for investors in order to allow them to evaluate our
operations without the effects of various items we do not believe are
characteristic of our ongoing operations or performance and also because such
metrics assist both investors and management in analyzing and benchmarking the
performance and value of our business. Adjusted EBITDA also provides an
indicator of general economic performance that is not affected by fluctuations
in interest rates or effective tax rates, levels of depreciation or
amortization, or unusual items. Because we use the ratio of net homebuilding
debt to total capitalization to evaluate our performance against other companies
in the homebuilding industry, we believe this measure is also relevant and
useful to investors for that reason. We believe that adjusted home closings
gross margin is useful to investors because it allows investors to evaluate the
performance of our homebuilding operations without the varying effects of items
or transactions we do not believe are characteristic of our ongoing operations
or performance.
These non-GAAP financial measures should be considered in addition to, rather
than as a substitute for, the comparable U.S. GAAP financial measures of our
operating performance or liquidity. Although other companies in the homebuilding
industry may report similar information, their definitions may differ. We urge
investors to understand the methods used by other companies to calculate
similarly-titled non-GAAP financial measures before comparing their measures to
ours.
Adjusted Net Income and Adjusted Earnings Per Share
Three Months Ended
June 30,
($ in thousands, except per share data) 2021 2020
Net income available to TMHC $ 124,147 $ 65,674
William Lyon Homes related purchase accounting adjustments - 32,138
Transaction expenses - 18,712
Tax impact due to above non-GAAP reconciling items - (12,709)
Adjusted net income $ 124,147 $ 103,815
Basic weighted average shares 128,440 129,629
Adjusted earnings per common share - Basic $
0.97
Diluted weighted average shares 130,259 130,364 Adjusted earnings per common share - Diluted$ 0.95 $ 0.80 29
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Adjusted Income Before Income Taxes and Related Margin
Three Months Ended June 30,
($ in thousands) 2021 2020
Income before income taxes $ 163,224 $ 84,844
William Lyon Homes related purchase accounting adjustments - 32,138
Transaction expenses - 18,712
Adjusted income before income taxes $ 163,224 $ 135,694
Total revenues $ 1,719,280 $ 1,526,685
Income before income taxes margin 9.5 % 5.6 %
Adjusted income before income taxes margin 9.5 % 8.9 %
Adjusted Home Closings Gross Margin
Three Months Ended
June 30,
($ in thousands) 2021 2020
Home closings revenue $ 1,644,380 $ 1,470,994
Cost of home closings 1,331,041 1,244,224
Home closings gross margin $
313,339
- 32,138
Adjusted home closings gross margin $ 313,339 $ 258,908
Home closings gross margin as a percentage of home closings revenue 19.1 % 15.4 %
Adjusted home closings gross margin as a percentage of home
closings revenue 19.1 % 17.6 %
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EBITDA and Adjusted EBITDA Reconciliation
Three Months Ended
June 30,
(Dollars in thousands) 2021 2020
Net income before allocation to non-controlling interests $ 124,755 $ 67,222
Interest expense/(income), net 3 (337)
Amortization of capitalized interest 34,070 28,667
Income tax provision 38,469 17,622
Depreciation and amortization 2,193 1,467
EBITDA $ 199,490 $ 114,641
Non-cash compensation expense 4,654 4,986
William Lyon Homes related purchase accounting adjustments - 32,138
Transaction expenses - 18,712
Adjusted EBITDA $ 204,144 $ 170,477
Total revenues $ 1,719,280 $ 1,526,685
EBITDA as a percentage of total revenues 11.6 % 7.5 %
Adjusted EBITDA as a percentage of total revenues 11.9 % 11.2 %
Net Homebuilding Debt to Capitalization Ratio
Reconciliation
As of As of
($ in thousands) June 30, 2021 March 31, 2021
Total debt $ 3,082,648 $ 3,025,587
Less unamortized debt issuance premiums, net 2,344 2,354
Less mortgage warehouse borrowings 215,230 180,833
Total homebuilding debt $ 2,865,074 $ 2,842,400
Less cash and cash equivalents 366,267 392,500
Net homebuilding debt $ 2,498,807 $ 2,449,900
Total equity 3,668,849 3,655,564
Total capitalization $ 6,167,656 $ 6,105,464
Net homebuilding debt to capitalization ratio 40.5 % 40.1 %
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Three And Six Months EndedJune 30, 2021 Compared to Three And Six Months EndedJune 30, 2020 The results for the three and six months endedJune 30, 2021 and 2020 were impacted by various macro economic conditions. The first six months of the prior year was negatively impacted with the onset of COVID-19. For a limited period of time during 2020, we experienced an increase in our cancellation rate and a decrease in our net sales orders, among other changes. During the second half of 2020, demand for housing increased at a nationwide level. Interest rates declined, offering greater affordability and for various reasons, more affordable markets saw a significant increase in demand from out-of-state customers. As ofJune 30, 2021 , interest rates continue to remain low and the demand for new housing remains high as re-sale inventory is low. In addition, we continue to experience supply chain disruptions, labor shortages, and increasing costs related to materials, specifically lumber. While we believe our pricing strategies will offset increases in cost, the supply chain delays and labor shortages have extended our cycle times. We have also intentionally limited our sales releases and delayed the release of speculative homes. Despite these conditions, we experienced a strong sales pace of 3.4 for the second quarter and 3.9 for the first half of 2021, a 21% and 34% increase from the same periods in the prior year, respectively. Our total average active selling communities have decreased compared to the same periods in the prior year as a result of such demand. The average sales price for net sales orders, backlog, and homes closed during the three and six months endedJune 30, 2021 all increased compared to the three and six months endedJune 30, 2020 . Additional information for each metric is provided below.
Average Active Selling Communities
Three Months Ended June 30,
2021 2020 Change
East 126 153 (17.6) %
Central 101 132 (23.5)
West 105 126 (16.7)
Total 332 411 (19.2) %
Six Months Ended June 30,
2021 2020 Change
East 127 148 (14.2) %
Central 102 133 (23.3)
West 106 112 (5.4)
Total 335 393 (14.8) %
Average active selling communities for the three and six months ended June 30,
2021 compared to the three and six months ended June 30, 2020 decreased by 19.2%
and 14.8%, respectively. The decrease is primarily attributable to early
community close outs. The close outs were the result of our strong sales
environment for the last twelve months causing active selling communities to
sell out ahead of schedule. Average community count is expected to increase by
the end of 2022 and continuing on into 2023 as land we currently control becomes
owned and transitions into active selling communities.
Net Sales Orders
Three Months Ended June 30,
Net Sales Orders (1) Sales Value (1) Average Selling Price
(Dollars in thousands) 2021 2020 Change 2021 2020 Change 2021 2020 Change
East 1,302 1,176 10.7 % $ 713,398 $ 484,701 47.2 % $ 548 $ 412 33.0 %
Central 850 1,003 (15.3) 500,976 437,568 14.5 589 436 35.1
West 1,270 1,274 (0.3) 828,731 643,156 28.9 653 505 29.3
Total 3,422 3,453 (0.9) % $ 2,043,105 $ 1,565,425 30.5 % $ 597 $ 453 31.8 %
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Six Months Ended June 30,
Net Sales Orders (1) Sales Value (1) Average Selling Price
(Dollars in thousands) 2021 2020 Change 2021 2020 Change 2021 2020 Change
East 3,079 2,537 21.4 % $ 1,591,982 $ 1,046,245 52.2 % $ 517 $ 412 25.5 %
Central 1,922 1,909 0.7 1,084,457 861,631 25.9 564 451 25.1
West 2,913 2,473 17.8 1,839,497 1,275,399 44.2 631 516 22.3
Total 7,914 6,919 14.4 % $ 4,515,936 $ 3,183,275 41.9 % $ 571 $ 460 24.1 %
(1) Net sales orders and sales value represent the number and dollar value,
respectively, of new sales contracts executed with customers, net of
cancellations.
East:
The number of net sales orders and sales values increased by 10.7% and 47.2%,
respectively, for the three months ended June 30, 2021 and 21.4% and 52.2%,
respectively, for the six months ended June 30, 2021 compared to the same
periods in the prior year. The increase in net sales orders was primarily due to
demand in our Florida markets, including the 50 plus lifestyle market, which
remained strong during the three and six months ended June 30, 2021 as compared
to the same periods in the prior year when the COVID-19 pandemic negatively
impacted net sales orders. In addition, sales order pace increased 30.8% and
37.9% for the three and six months ended June 30, 2021 , respectively, compared
to the same periods in the prior year. Market appreciation as well as product
and geographical mix contributed to the change in average selling price for both
comparative periods.
Central:
The net sales orders decreased by 15.3% in the three months endedJune 30, 2021 compared to the same period in the prior year, while the net sales values increased 14.5% compared to the same period in the prior year. The decrease in net sales orders for the second quarter is a result of a decrease in community count along with an increase in sales pace per community. We also raised selling prices in many of our communities for these same reasons. In addition, extreme weather conditions in certain markets within the Central region also contributed to the decrease in net sales orders for the second quarter. The net sales orders remained relatively flat for the six months endedJune 30, 2021 compared to the same period in the prior year, due to strong sales orders during the prior quarter offset by the imposition of sales caps during the current quarter. Net sales values increased 25.9% compared to the same period in the prior year primarily due to market appreciation.
West:
The number of net sales orders remained flat for the three months endedJune 30, 2021 compared to the same period in the prior year, while net sales values increased by 28.9% for the same period. A decrease in community count along with an increase in sales pace per community contributed to the relatively flat net sales orders during the second quarter. We have also raised selling prices in many of our communities to optimize our cycle times and balance increased demand with supply chain disruptions and trade labor availability. The net sales orders and net sales values increased 17.8% and 44.2%, respectively, for the six months endedJune 30, 2021 compared to the same period in the prior year. The sales order increase is mainly due to continued strong demand and an effort to increase our footprint in several markets. The increase in the net sales value is mainly due to market appreciation and product mix.
Sales Order Cancellations
Cancellation Rate(1)
Three Months Ended Six Months Ended
June 30, June 30,
2021 2020 2021 2020
East 4.5 % 15.4 % 5.4 % 13.7 %
Central 5.9 % 20.8 % 6.2 % 18.6 %
West 5.6 % 19.5 % 6.0 % 16.9 %
Total Company 5.2 % 18.6 % 5.8 % 16.2 %
(1) Cancellation rate represents the number of canceled sales orders divided by gross sales orders.
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The total company cancellation rate decreased to 5.2% from 18.6% and 5.8% from
16.2%, respectively, for the three and six months ended June 30, 2021 compared
to the same periods in the prior year. We believe the decrease in cancellations
for the three and six months ended June 30, 2021 , compared to the prior year
periods, was a result of the high demand and customers wanting to secure housing
as a result of low inventory levels, low interest rates, and price appreciation.
In addition, we believe increased consumer confidence relative to the prior year
periods, which were negatively impacted by the COVID-19 pandemic, contributed to
the lower cancellation rate.
Sales Order Backlog
As of June 30,
Sold Homes in Backlog (1) Sales Value Average Selling Price(Dollars in thousands) 2021 2020 Change 2021 2020 Change 2021 2020 Change East 3,617 2,271 59.3 %$ 1,903,206 $ 974,860 95.2 %$ 526 $ 429 22.6 % Central 2,838 2,111 34.4 1,581,686 1,006,002 57.2 557 477 16.8 West 3,773 2,423 55.7 2,250,680 1,245,301 80.7 597 514 16.1 Total 10,228 6,805 50.3 %$ 5,735,572 $ 3,226,163 77.8 %$ 561 $ 474 18.4 % (1) Sales order backlog represents homes under contract for which revenue has not yet been recognized at the end of the period (including homes sold but not yet started). Some of the contracts in our sales order backlog are subject to contingencies including mortgage loan approval and buyers selling their existing homes, which can result in cancellations. Total backlog units and total sales value increased by 50.3% and 77.8% atJune 30, 2021 , respectively, compared toJune 30, 2020 . The increase in backlog units and sales value was primarily due to a strong sales environment as a result of demand for housing and low interest rates. In addition, various supply chain disruptions, trade labor availability, and inclement weather have led to a small increase in cycle times, which contributes to an increase in backlog inventory. Home Closings Revenue Three Months Ended June 30, Homes Closed Home Closings Revenue, Net Average Selling Price (Dollars in thousands) 2021 2020 Change 2021 2020 Change 2021 2020 Change East 1,245 1,097 13.5 %$ 563,326 $ 467,154 20.6 %$ 452 $ 426 6.1 % Central 791 1,059 (25.3) 382,743 473,549 (19.2) 484 447 8.3 West 1,232 1,056 16.7 698,311 530,291 31.7 567 502 12.9 Total 3,268 3,212 1.7 %$ 1,644,380 $ 1,470,994 11.8 %$ 503 $ 458 9.8 % Six Months Ended June 30, Homes Closed Home Closings Revenue, Net Average Selling Price (Dollars in thousands) 2021 2020 Change 2021 2020 Change 2021 2020 Change East 2,297 2,082 10.3 %$ 1,009,211 $ 862,870 17.0 %$ 439 $ 414 6.0 % Central 1,482 1,878 (21.1) 702,920 846,573 (17.0) 474 451 5.1 West 2,310 2,013 14.8 1,295,678 1,026,191 26.3 561 510 10.0 Total 6,089 5,973 1.9 %$ 3,007,809 $ 2,735,634 9.9 %$ 494 $ 458 7.9 % East: The number of homes closed and home closings revenue, net, increased by 13.5% and 20.6%, respectively, for the three months endedJune 30, 2021 and 10.3% and 17.0%, respectively, for the six months endedJune 30, 2021 compared to the same periods in the prior year. This is primarily due to strong market demand and increased sales pace in certain of ourFlorida markets in the latter half of 2020. Geographical and product mix along with market price appreciation contributed to the increase in average selling price of homes closed for the three and six months endedJune 30, 2021 compared to the same period in the prior year. Central: 34 -------------------------------------------------------------------------------- Table of Contents The number of homes closed and home closings revenue, net, decreased by 25.3% and 19.2%, respectively, for the three months endedJune 30, 2021 and 21.1% and 17.0%, respectively, for the six months endedJune 30, 2021 compared to the same periods in the prior year. These decreases in both units and dollars were due to extended cycle times from delays in the supply chain, increase in material cost, extreme weather in certain of our markets, and labor availability. Geographical and product mix along with market price appreciation contributed to the increase in average selling price of homes closed for the three and six months endedJune 30, 2021 compared to the same period in the prior year.
West:
The number of homes closed and home closings revenue, net, increased by 16.7% and 31.7%, respectively, for the three months endedJune 30, 2021 and 14.8% and 26.3%, respectively, for the six months endedJune 30, 2021 compared to the same periods in the prior year. The increase in both units and dollars was primarily due to strong market demand and increases in selling prices. Land Closings Revenue Three Months Ended June 30, (Dollars in thousands) 2021 2020 Change East$ 13,203 $ 3,230 $ 9,973 Central 3,096 7,316 (4,220) West 15,758 - 15,758 Total$ 32,057 $ 10,546 $ 21,511 Six Months Ended June 30, (Dollars in thousands) 2021 2020 Change East$ 15,656 C$ 25,854 $ (10,198) Central 5,532 7,631 (2,099) West 15,758 - 15,758 Total$ 36,946 $ 33,485 $ 3,461 We generally purchase land and lots with the intent to build and sell homes. However, in some locations where we act as a developer, we occasionally purchase land that includes commercially zoned parcels or areas designated for school or government use, which we typically sell to commercial developers or municipalities, as applicable. We also sell residential lots or land parcels to manage our land and lot supply on larger tracts of land. Land and lot sales occur at various intervals and varying degrees of profitability. Therefore, the revenue and gross margin from land closings will fluctuate from period to period, depending upon market opportunities. The land closings revenue in the West for the three and six months endedJune 30, 2021 is due to the sale of certain projects in ourWashington andArizona markets. 35 -------------------------------------------------------------------------------- Table of Contents Amenity and Other Revenue Three Months Ended June
30,
(Dollars in thousands) 2021 2020 Change
East $ 4,833 $ 4,239 $ 594
Central - - -
West 370 498 (128)
Corporate 248 111 137
Total $ 5,451 $ 4,848 $ 603
Six Months Ended June 30,
(Dollars in thousands) 2021 2020 Change
East $ 9,856 C $ 9,290 $ 566
Central - - -
West 733 921 (188)
Corporate $ 291 $ 24,718 $ (24,427)
Total $ 10,880 $ 34,929 $ (24,049)
Several of our communities operate amenities such as golf courses, club houses,
and fitness centers. We provide club members access to the amenity facilities
and other services in exchange for club dues and fees. Our Corporate region also
includes the activity relating to our Urban Form operations which primarily
develops and constructs multi-use properties consisting of commercial space,
retail, and multi-family units.
Home Closings Gross Margin and Adjusted Home Closings Gross Margin
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