- Reported Loss for the Quarter Narrows from First Quarter 2009
- Second Quarter Net New Orders of 3,367 Homes, Up 11% from Q1 2009 on 9% Fewer Communities
- Closings Total 2,500 Homes as Inventory of Unsold Homes Drops 42% from Prior Year
-
Quarter-end Backlog Valued at
$1.1 Billion -
Quarter-end Cash of
$1.6 Billion After Use of$180 Million for Debt Reduction -
Merger With Centex on Track to Close in Q3; Shareholder Vote
Scheduled for
August 18, 2009
Lower closings and revenues drove a net loss for the second quarter of
“Pulte’s second quarter results reflect an industry under pressure as a
weak economy, rising unemployment and soft consumer confidence continue
to depress homebuying demand,” said
“The current operating environment remains challenging, but we continue to successfully execute our immediate plans which emphasize cash generation and strengthening our balance sheet, while we pursue initiatives that support Pulte’s return to profitability.”
Second Quarter Results
Revenues from homebuilding settlements in the second quarter decreased
58% to
The Company’s second quarter homebuilding pre-tax loss improved to
Net new home orders for the second quarter were 3,367 homes, valued at
At the end of the second quarter 2009, the Company’s debt-to-capitalization ratio was 58%, and on a net debt-to-capitalization basis was 38%.
The Company’s financial services operations reported a pre-tax loss of
Six Month Results
For the six months ended
Revenues from homebuilding settlements for the period were
Homebuilding pre-tax loss for the first six months ended
For the first six months of 2009, the Company’s financial services
operations realized a pre-tax loss of
Update on Centex Merger
On
“Our two organizations have invested thousands of hours into planning
for the merger and post-close integration of our operations,” said Mr.
Dugas, who upon completion of the merger will be named Chairman,
President and CEO. “Everyone involved in this process understands the
importance of successfully bringing our companies together and achieving
the
A conference call discussing Pulte Homes’ second quarter results will be
held
About
Websites: www.pulteinc.com; www.pulte.com; www.delwebb.com; www.divosta.com
Forward-Looking Statements
This document includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may include, but are not limited to, statements about the benefits of the proposed transaction, including future financial and operating results, and the combined company’s plans, objectives, expectations and intentions. 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:
the ability to obtain regulatory approvals of the merger on the proposed
terms and schedule contemplated by the parties; the failure of Centex’s
stockholders to approve the merger agreement; the failure of Pulte’s
shareholders to approve either the charter amendment or the issuance of
shares in the merger; the possibility that the proposed transaction does
not close, including due to the failure to satisfy the closing
conditions; the possibility that the expected efficiencies and cost
savings of the proposed transaction will not be realized, or will not be
realized within the expected time period; the risk that the Pulte and
Additional Information
In connection with the proposed transaction, Pulte and
Pulte and
Pulte Homes, Inc. Condensed Consolidated Results of Operations ($000’s omitted, except per share data) (Unaudited) |
||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||
CONSOLIDATED RESULTS: | ||||||||||||
Revenues: | ||||||||||||
Homebuilding | $ 657,882 | $ 1,580,468 | $ 1,223,225 | $ 2,978,577 | ||||||||
Financial Services | 20,698 | 38,945 | 39,247 | 82,433 | ||||||||
Total revenues |
$ 678,580 | $ 1,619,413 | $ 1,262,472 | $ 3,061,010 | ||||||||
Pre-tax income (loss): | ||||||||||||
Homebuilding | $ (187,483 | ) | $ (221,321 | ) | $ (694,916 | ) | $ (926,451 | ) | ||||
Financial Services | (9,370 | ) | 10,802 | (10,118 | ) | 25,846 | ||||||
Other non-operating | 9,924 | (4,708 | ) | 5,859 | (7,678 | ) | ||||||
Loss before income taxes | (186,929 | ) | (215,227 | ) | (699,175 | ) | (908,283 | ) | ||||
Income taxes (benefit) | 2,536 | (56,810 | ) | 5,108 | (53,722 | ) | ||||||
Net loss | $ (189,465 | ) | $ (158,417 | ) | $ (704,283 | ) | $ (854,561 | ) | ||||
EARNINGS PER SHARE - | ||||||||||||
ASSUMING DILUTION: | ||||||||||||
Net loss | $ (0.74 | ) | $ (0.63 | ) | $ (2.77 | ) | $ (3.37 | ) | ||||
Shares used in per share | ||||||||||||
calculations | 254,764 | 253,454 | 254,672 | 253,310 | ||||||||
Pulte Homes, Inc. Condensed Consolidated Balance Sheets ($000’s omitted) |
||||
June 30, | December 31, | |||
2009 | 2008 | |||
(Unaudited) | ||||
ASSETS | ||||
Cash and equivalents | $ 1,636,040 | $ 1,655,264 | ||
Unfunded settlements | 2,755 | 11,988 | ||
House and land inventory | 3,677,085 | 4,201,289 | ||
Land held for sale | 77,204 | 164,954 | ||
Land, not owned, under option agreements | 159,360 | 171,101 | ||
Residential mortgage loans available-for-sale | 90,595 | 297,755 | ||
Investments in unconsolidated entities | 94,635 | 134,886 | ||
Other assets | 658,195 | 697,652 | ||
Income taxes receivable | 7,040 | 373,569 | ||
$ 6,402,909 | $ 7,708,458 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Liabilities: | ||||
Accounts payable | $ 175,087 | $ 218,135 | ||
Customer deposits | 57,147 | 40,950 | ||
Accrued and other liabilities | 885,242 | 1,079,195 | ||
Collateralized short-term debt, recourse solely to applicable | ||||
non-guarantor subsidiary assets | 28,351 | 237,560 | ||
Income tax liabilities | 133,203 | 130,615 | ||
Senior notes | 2,974,373 | 3,166,305 | ||
Total liabilities | 4,253,403 | 4,872,760 | ||
Shareholders' equity | 2,149,506 | 2,835,698 | ||
$ 6,402,909 | $ 7,708,458 | |||
Pulte Homes, Inc. Segment Data ($000’s omitted) |
||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||
HOMEBUILDING: | ||||||||||||
Home sales (settlements) | $ 653,711 | $ 1,555,137 | $ 1,218,444 | $ 2,951,568 | ||||||||
Land sales | 4,171 | 25,331 | 4,781 | 27,009 | ||||||||
Homebuilding Revenue | 657,882 | 1,580,468 | 1,223,225 | 2,978,577 | ||||||||
Home cost of sales | (724,891 | ) | (1,537,269 | ) | (1,622,829 | ) | (3,382,323 | ) | ||||
Land cost of sales | (11,364 | ) | (68,121 | ) | (12,268 | ) | (133,069 | ) | ||||
Selling, general | ||||||||||||
& administrative expense | (114,075 | ) | (177,643 | ) | (233,519 | ) | (379,580 | ) | ||||
Other income (expense), net | 4,965 | (18,756 | ) | (49,525 | ) | (10,056 | ) | |||||
Pre-tax loss | $ (187,483 | ) | $ (221,321 | ) | $ (694,916 | ) | $ (926,451 | ) | ||||
FINANCIAL SERVICES: | ||||||||||||
Pre-tax income (loss) | $ (9,370 | ) | $ 10,802 | $ (10,118 | ) | $ 25,846 | ||||||
OTHER NON-OPERATING: | ||||||||||||
Pre-tax income (loss): | ||||||||||||
Net interest income | $ 2,211 | $ 5,644 | $ 5,261 | $ 12,118 | ||||||||
Other income (expense), net | 7,713 | (10,352 | ) | 598 | (19,796 | ) | ||||||
Total other non-operating | $ 9,924 | $ (4,708 | ) | $ 5,859 | $ (7,678 | ) | ||||||
Pulte Homes, Inc. Business Operating Data ($000’s omitted) (Unaudited) |
||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
2009 | 2008 | 2009 | 2008 | |||||
Homebuilding settlement | ||||||||
revenues | $ 653,711 | $ 1,555,137 | $ 1,218,444 | $ 2,951,568 | ||||
Unit settlements: | ||||||||
Atlantic Coast | 597 | 1,424 | 1,035 | 2,565 | ||||
Gulf Coast | 711 | 1,430 | 1,367 | 2,722 | ||||
Midwest | 290 | 615 | 563 | 1,238 | ||||
Southwest | 591 | 1,423 | 1,136 | 2,620 | ||||
California | 311 | 546 | 546 | 1,026 | ||||
2,500 | 5,438 | 4,647 | 10,171 | |||||
Average selling price | $ 261 | $ 286 | $ 262 | $ 290 | ||||
Net new orders: | ||||||||
Atlantic Coast | 916 | 1,279 | 1,676 | 2,605 | ||||
Gulf Coast | 866 | 1,278 | 1,622 | 2,801 | ||||
Midwest | 390 | 700 | 788 | 1,279 | ||||
Southwest | 850 | 1,420 | 1,612 | 2,887 | ||||
California | 345 | 456 | 691 | 963 | ||||
3,367 | 5,133 | 6,389 | 10,535 | |||||
Net new orders - dollars* | $ 862,000 | $ 1,413,000 | $ 1,649,000 | $ 2,874,000 | ||||
Unit backlog: | ||||||||
Atlantic Coast | 1,217 | 2,112 | ||||||
Gulf Coast | 944 | 2,201 | ||||||
Midwest | 496 | 869 | ||||||
Southwest | 870 | 2,277 | ||||||
California | 389 | 795 | ||||||
3,916 | 8,254 | |||||||
Dollars in backlog | $ 1,061,000 | $ 2,432,000 | ||||||
* Net new order dollars represents a composite of new order dollars combined with other | ||||||||
movement of the dollars in backlog related to cancellations and change orders. | ||||||||
Pulte Homes, Inc. Business Operating Data, continued ($000’s omitted) (Unaudited) |
||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||
MORTGAGE ORIGINATIONS: | ||||||||||||
Origination volume | 1,890 | 3,931 | 3,501 | 7,445 | ||||||||
Origination principal | $ 404,900 | $ 877,300 | $ 748,400 | $ 1,680,700 | ||||||||
Capture rate percentage | 91.1 | % | 92.3 | % | 91.3 | % | 91.2 | % | ||||
Pulte Homes, Inc. Supplemental Information ($000’s omitted) (Unaudited) |
||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||
June 30, | June 30, | |||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||
Interest expense: | ||||||||||||
Homebuilding (included in | ||||||||||||
home cost of sales) | $ 33,318 | $ 38,632 | $ 88,323 | $ 97,124 | ||||||||
Financial Services | 255 | 1,555 | 615 | 3,425 | ||||||||
Other non-operating | 436 | 708 | 914 | 1,456 | ||||||||
Total interest expense | $ 34,009 | $ 40,895 | $ 89,852 | $ 102,005 | ||||||||
Depreciation & amortization | $ 11,825 | $ 19,113 | $ 24,803 | $ 38,828 | ||||||||
Source:
Pulte Homes
Investors: Jim Zeumer
(248) 433-4527
email: jim.zeumer@pulte.com