In the prior year fourth quarter,
"We are pleased to report another quarter of strong financial results that demonstrate improved fundamental operating performance and higher returns on invested capital," said
"Fourth quarter results also demonstrated continued strong cash flow generation consistent with our focus on greater capital efficiency. For the full year, we were able to increase our cash position by
"We now look ahead to 2013 with expectations for a continued rebound in U.S. housing driven by record low interest rates, higher rent vs. own costs, rising home prices and sharply lower overall housing inventory. Given this expectation, and consistent with our focus on improving long-term returns, we have authorized an additional
Fourth Quarter Results
Home sale revenues in the fourth quarter ended
The Company's adjusted home sale gross margin for the fourth quarter was 21.8%, an increase of 320 basis points over the prior year and 20 basis points compared with the third quarter of 2012. Homebuilding SG&A expense for the quarter was
For the quarter, the Company reported 3,926 net new orders, an increase of 27% over prior year orders of 3,084. The dollar value of net new orders in the quarter was
The Company's financial services operations reported a pretax loss of
During the quarter, the Company used available cash to repurchase
A conference call discussing
Forward-Looking Statements
This press release includes "forward-looking statements." These statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these statements. You can identify these statements by the fact that they do not relate to matters of a strictly factual or historical nature and generally discuss or relate to forecasts, estimates or other expectations regarding future events. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "may," "can," "could," "might," "will" and similar expressions identify forward-looking statements, including statements related to expected operating and performing results, planned transactions, planned objectives of management, future developments or conditions in the industries in which we participate and other trends, developments and uncertainties that may affect our business in the future.
Such risks, uncertainties and other factors include, among other things: interest rate changes and the availability of mortgage financing; continued volatility in the debt and equity markets; competition within the industries in which
About
For more information about
PulteGroup, Inc. Consolidated Results of Operations ($000's omitted, except per share data) (Unaudited) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
2012 |
2011 |
2012 |
2011 |
||||||||||||
Revenues: |
|||||||||||||||
Homebuilding |
|||||||||||||||
Home sale revenues |
$ |
1,481,517 |
$ |
1,167,141 |
$ |
4,552,412 |
$ |
3,950,743 |
|||||||
Land sale revenues |
36,928 |
63,830 |
106,698 |
82,853 |
|||||||||||
1,518,445 |
1,230,971 |
4,659,110 |
4,033,596 |
||||||||||||
Financial Services |
48,521 |
31,374 |
160,888 |
103,094 |
|||||||||||
Total revenues |
1,566,966 |
1,262,345 |
4,819,998 |
4,136,690 |
|||||||||||
Homebuilding Cost of Revenues: |
|||||||||||||||
Home sale cost of revenues |
1,228,201 |
1,021,873 |
3,833,451 |
3,444,398 |
|||||||||||
Land sale cost of revenues |
32,811 |
57,497 |
94,880 |
59,279 |
|||||||||||
1,261,012 |
1,079,370 |
3,928,331 |
3,503,677 |
||||||||||||
Financial Services expenses |
72,597 |
58,836 |
135,511 |
137,666 |
|||||||||||
Selling, general, and administrative expenses |
141,766 |
117,204 |
514,457 |
519,583 |
|||||||||||
Other expense (income), net |
41,728 |
18,337 |
66,298 |
293,102 |
|||||||||||
Interest income |
(1,331) |
(1,351) |
(4,913) |
(5,055) |
|||||||||||
Interest expense |
204 |
323 |
819 |
1,313 |
|||||||||||
Equity in (earnings) loss of unconsolidated entities |
(223) |
(1,299) |
(4,059) |
(3,296) |
|||||||||||
Income (loss) before income taxes |
51,213 |
(9,075) |
183,554 |
(310,300) |
|||||||||||
Income tax expense (benefit) |
(7,529) |
(22,896) |
(22,591) |
(99,912) |
|||||||||||
Net income (loss) |
$ |
58,742 |
$ |
13,821 |
$ |
206,145 |
$ |
(210,388) |
|||||||
Net income (loss) per share: |
|||||||||||||||
Basic |
$ |
0.15 |
$ |
0.04 |
$ |
0.54 |
$ |
(0.55) |
|||||||
Diluted |
$ |
0.15 |
$ |
0.04 |
$ |
0.54 |
$ |
(0.55) |
|||||||
Number of shares used in calculation: |
|||||||||||||||
Basic |
383,404 |
380,149 |
381,562 |
379,877 |
|||||||||||
Effect of dilutive securities |
5,900 |
1,112 |
3,002 |
— |
|||||||||||
Diluted |
389,304 |
381,261 |
384,564 |
379,877 |
PulteGroup, Inc. Condensed Consolidated Balance Sheets ($000's omitted) (Unaudited) |
|||||||
December 31, |
December 31, |
||||||
ASSETS |
|||||||
Cash and equivalents |
$ |
1,404,760 |
$ |
1,083,071 |
|||
Restricted cash |
71,950 |
101,860 |
|||||
House and land inventory |
4,214,046 |
4,636,468 |
|||||
Land held for sale |
91,104 |
135,307 |
|||||
Land, not owned, under option agreements |
31,066 |
24,905 |
|||||
Residential mortgage loans available-for-sale |
318,931 |
258,075 |
|||||
Investments in unconsolidated entities |
45,629 |
35,988 |
|||||
Other assets |
407,675 |
447,598 |
|||||
Intangible assets |
149,248 |
162,348 |
|||||
$ |
6,734,409 |
$ |
6,885,620 |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
Liabilities: |
|||||||
Accounts payable |
$ |
178,274 |
$ |
196,447 |
|||
Customer deposits |
101,183 |
46,960 |
|||||
Accrued and other liabilities |
1,418,063 |
1,411,941 |
|||||
Income tax liabilities |
198,865 |
203,313 |
|||||
Financial Services debt |
138,795 |
— |
|||||
Senior notes |
2,509,613 |
3,088,344 |
|||||
Total liabilities |
4,544,793 |
4,947,005 |
|||||
Shareholders' equity |
2,189,616 |
1,938,615 |
|||||
$ |
6,734,409 |
$ |
6,885,620 |
PulteGroup, Inc. Consolidating Statements of Cash Flows ($000's omitted) (Unaudited) |
|||||||
Year Ended |
|||||||
December 31, |
|||||||
2012 |
2011 |
||||||
Cash flows from operating activities: |
|||||||
Net income (loss) |
$ |
206,145 |
$ |
(210,388) |
|||
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities: |
|||||||
Write-down of land and deposits and pre-acquisition costs |
17,195 |
35,786 |
|||||
Goodwill impairments |
— |
240,541 |
|||||
Amortization and depreciation |
30,027 |
32,098 |
|||||
Stock-based compensation expense |
22,897 |
16,970 |
|||||
Loss on debt repurchases |
32,071 |
5,638 |
|||||
Equity in (earnings) loss of unconsolidated entities |
(4,059) |
(3,296) |
|||||
Distributions of earnings from unconsolidated entities |
7,488 |
7,083 |
|||||
Other non-cash, net |
10,356 |
12,188 |
|||||
Increase (decrease) in cash due to: |
|||||||
Restricted cash |
1,257 |
5,940 |
|||||
Inventories |
455,223 |
54,891 |
|||||
Residential mortgage loans available-for-sale |
(60,828) |
(82,113) |
|||||
Other assets |
26,014 |
182,471 |
|||||
Accounts payable, accrued and other liabilities |
20,802 |
(189,435) |
|||||
Income tax liabilities |
(4,448) |
(91,095) |
|||||
Net cash provided by (used in) operating activities |
760,140 |
17,279 |
|||||
Cash flows from investing activities: |
|||||||
Distributions from unconsolidated entities |
3,029 |
4,531 |
|||||
Investments in unconsolidated entities |
(16,456) |
(4,603) |
|||||
Net change in loans held for investment |
836 |
325 |
|||||
Change in restricted cash related to letters of credit |
28,653 |
(83,199) |
|||||
Proceeds from the sale of property and equipment |
7,586 |
10,555 |
|||||
Capital expenditures |
(13,942) |
(21,238) |
|||||
Net cash provided by (used in) investing activities |
9,706 |
(93,629) |
|||||
Cash flows from financing activities: |
|||||||
Financial Services borrowings (repayments) |
138,795 |
— |
|||||
Other borrowings (repayments) |
(618,800) |
(321,133) |
|||||
Stock option exercises |
32,809 |
— |
|||||
Stock repurchases |
(961) |
(2,836) |
|||||
Net cash provided by (used in) financing activities |
(448,157) |
(323,969) |
|||||
Net increase (decrease) in cash and equivalents |
321,689 |
(400,319) |
|||||
Cash and equivalents at beginning of period |
1,083,071 |
1,483,390 |
|||||
Cash and equivalents at end of period |
$ |
1,404,760 |
$ |
1,083,071 |
|||
Supplemental Cash Flow Information: |
|||||||
Interest paid (capitalized), net |
$ |
(1,470) |
$ |
(9,623) |
|||
Income taxes paid (refunded), net |
$ |
(13,322) |
$ |
(62,167) |
PulteGroup, Inc. Segment Data ($000's omitted) (Unaudited) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
2012 |
2011 |
2012 |
2011 |
||||||||||||
HOMEBUILDING: |
|||||||||||||||
Home sale revenues |
$ |
1,481,517 |
$ |
1,167,141 |
$ |
4,552,412 |
$ |
3,950,743 |
|||||||
Land sale revenues |
36,928 |
63,830 |
106,698 |
82,853 |
|||||||||||
Total Homebuilding revenues |
1,518,445 |
1,230,971 |
4,659,110 |
4,033,596 |
|||||||||||
Home sale cost of revenues |
1,228,201 |
1,021,873 |
3,833,451 |
3,444,398 |
|||||||||||
Land sale cost of revenues |
32,811 |
57,497 |
94,880 |
59,279 |
|||||||||||
Selling, general, and administrative expenses |
141,766 |
117,204 |
514,457 |
519,583 |
|||||||||||
Equity in (earnings) loss of unconsolidated entities |
(159) |
(1,263) |
(3,873) |
(3,194) |
|||||||||||
Other expense (income), net |
41,728 |
18,337 |
66,298 |
293,102 |
|||||||||||
Interest income, net |
(1,127) |
(1,028) |
(4,094) |
(3,742) |
|||||||||||
Income (loss) before income taxes |
$ |
75,225 |
$ |
18,351 |
$ |
157,991 |
$ |
(275,830) |
|||||||
FINANCIAL SERVICES: |
|||||||||||||||
Income (loss) before income taxes |
$ |
(24,012) |
$ |
(27,426) |
$ |
25,563 |
$ |
(34,470) |
|||||||
CONSOLIDATED: |
|||||||||||||||
Income (loss) before income taxes |
$ |
51,213 |
$ |
(9,075) |
$ |
183,554 |
$ |
(310,300) |
PulteGroup, Inc. Segment data, continued ($000's omitted) (Unaudited) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
2012 |
2011 |
2012 |
2011 |
||||||||||||
Home sale revenues |
$ |
1,481,517 |
$ |
1,167,141 |
$ |
4,552,412 |
$ |
3,950,743 |
|||||||
Closings - units |
|||||||||||||||
Northeast |
576 |
649 |
1,800 |
1,880 |
|||||||||||
Southeast |
773 |
739 |
2,757 |
2,771 |
|||||||||||
Florida |
707 |
596 |
2,340 |
2,251 |
|||||||||||
Texas |
1,003 |
822 |
3,487 |
3,327 |
|||||||||||
North |
1,046 |
742 |
3,103 |
2,579 |
|||||||||||
Southwest |
1,049 |
755 |
3,018 |
2,467 |
|||||||||||
5,154 |
4,303 |
16,505 |
15,275 |
||||||||||||
Average selling price |
$ |
287 |
$ |
271 |
$ |
276 |
$ |
259 |
|||||||
Net new orders - units |
|||||||||||||||
Northeast |
398 |
371 |
1,997 |
1,749 |
|||||||||||
Southeast |
682 |
534 |
3,066 |
2,642 |
|||||||||||
Florida |
600 |
470 |
2,747 |
2,314 |
|||||||||||
Texas |
905 |
597 |
4,117 |
3,278 |
|||||||||||
North |
789 |
586 |
3,661 |
2,635 |
|||||||||||
Southwest |
552 |
526 |
3,451 |
2,597 |
|||||||||||
3,926 |
3,084 |
19,039 |
15,215 |
||||||||||||
Net new orders - dollars (a) |
$ |
1,166,760 |
$ |
828,154 |
$ |
5,424,300 |
$ |
3,953,829 |
|||||||
December 31, |
|||||||||||||||
2012 |
2011 |
||||||||||||||
Unit backlog |
|||||||||||||||
Northeast |
622 |
425 |
|||||||||||||
Southeast |
911 |
602 |
|||||||||||||
Florida |
1,065 |
658 |
|||||||||||||
Texas |
1,455 |
825 |
|||||||||||||
North |
1,267 |
709 |
|||||||||||||
Southwest |
1,138 |
705 |
|||||||||||||
6,458 |
3,924 |
||||||||||||||
Dollars in backlog |
$ |
1,931,538 |
$ |
1,059,649 |
|||||||||||
(a) Net new order dollars represent a composite of new order dollars combined with other movements of the dollars in backlog related to cancellations and change orders. |
PulteGroup, Inc. Segment Data, continued ($000's omitted) (Unaudited) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
2012 |
2011 |
2012 |
2011 |
||||||||||||
MORTGAGE ORIGINATIONS: |
|||||||||||||||
Origination volume |
3,625 |
2,815 |
11,322 |
9,482 |
|||||||||||
Origination principal |
$ |
828,607 |
$ |
622,473 |
$ |
2,509,928 |
$ |
1,986,225 |
|||||||
Capture rate |
83.0 |
% |
81.8 |
% |
81.9 |
% |
78.5 |
% |
|||||||
Supplemental Data ($000's omitted) (Unaudited) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
2012 |
2011 |
2012 |
2011 |
||||||||||||
Interest in inventory, beginning of period |
$ |
352,026 |
$ |
365,343 |
$ |
355,068 |
$ |
323,379 |
|||||||
Interest capitalized |
47,734 |
53,704 |
201,103 |
221,071 |
|||||||||||
Interest expensed |
(67,880) |
(63,979) |
(224,291) |
(189,382) |
|||||||||||
Interest in inventory, end of period |
$ |
331,880 |
$ |
355,068 |
$ |
331,880 |
$ |
355,068 |
|||||||
Interest incurred |
$ |
47,734 |
$ |
53,704 |
$ |
201,103 |
$ |
221,071 |
Reconciliation of Non-GAAP Financial Measures
This report contains information about our home sale gross margins reflecting certain adjustments. This measure is considered a non-GAAP financial measure under the
The following table sets forth a reconciliation of this non-GAAP financial measure to the GAAP financial measure that management believes to be most directly comparable ($000's omitted):
Home Sale Gross Margin |
|||||||||||||||||||
Three Months Ended |
|||||||||||||||||||
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|||||||||||||||
Home sale revenues |
$ |
1,481,517 |
$ |
1,232,704 |
$ |
1,024,405 |
$ |
813,786 |
$ |
1,167,141 |
|||||||||
Home sale cost of revenues |
1,228,201 |
1,023,704 |
869,379 |
712,166 |
1,021,873 |
||||||||||||||
Home sale gross margin |
253,316 |
209,000 |
155,026 |
101,620 |
145,268 |
||||||||||||||
Add: |
|||||||||||||||||||
Impairments (a) |
2,250 |
385 |
633 |
3,700 |
7,885 |
||||||||||||||
Capitalized interestamortization (a) |
67,880 |
57,155 |
52,070 |
47,186 |
63,979 |
||||||||||||||
Adjusted home sale gross margin |
$ |
323,446 |
$ |
266,540 |
$ |
207,729 |
$ |
152,506 |
$ |
217,132 |
|||||||||
Home sale gross margin as a percentage of home sale revenues |
17.1 |
% |
17.0 |
% |
15.1 |
% |
12.5 |
% |
12.4 |
% |
|||||||||
Adjusted home sale gross margin as a percentage of home sale revenues |
21.8 |
% |
21.6 |
% |
20.3 |
% |
18.7 |
% |
18.6 |
% |
|||||||||
(a) Write-offs of capitalized interest related to impairments are reflected in capitalized interest amortization. |
SOURCE
Investors: Jim Zeumer, +1-248-433-4502, jim.zeumer@pultegroup.com