- Q1 Pretax Income Increased 58% to
$130 Million ; Up from$82 Million in 2013 - Q1 2014 Pretax Includes
$19 million of Income Relating to the Reversal of Mortgage Repurchase Reserves and$9 Million of Expense Relating to Debt Redemption Charges - Net Income of
$75 Million , or$0.19 Per Share, Includes Income Tax Expense of$55 Million ; Prior Year Net Income of$82 Million , or$0.21 Per Share, Includes Income Tax Expense of$1 Million - Average Selling Price Up 10% to
$317,000 - Gross Margin of 23.8% Increased 580 Basis Points Over Prior Year and 60 Basis Points Over Q4 2013
- Value of Net New Orders Increased 2% to
$1.6 Billion , as Increased Absorptions Per Community Generate New Orders of 4,863 Homes - Unit Backlog of 7,199 Homes Valued at
$2.4 Billion - During the Quarter, Company Redeemed
$246 Million of Senior Notes and Repurchased$45 Million of Stock
Net income in 2014 included income tax expense of
"
"We are pleased with the start of the spring selling season, as absorption paces per community improved from year ago levels and demand accelerated through the quarter. We continue to believe housing is in the early stages of a multiyear recovery benefitting from low interest rates, low inventory and continued relative affordability of homes, and with consumers looking for well-located houses and displaying a clear willingness to invest in those features they value most."
Home sale revenues for the first quarter were
The Company's home sale gross margin for the quarter was 23.8%, which is an increase of 580 basis points over the prior year and 60 basis points over the fourth quarter of 2013. Homebuilding SG&A expense for the period was
For the quarter, the Company reported 4,863 net new orders, a decrease of 6% from prior year. The dollar value of new orders was
The Company's financial services operations reported pretax income of
During the quarter,
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 |
|||||||
March 31, |
|||||||
2014 |
2013 |
||||||
Revenues: |
|||||||
Homebuilding |
|||||||
Home sale revenues |
$ |
1,088,015 |
$ |
1,099,752 |
|||
Land sale revenues |
5,984 |
26,131 |
|||||
1,093,999 |
1,125,883 |
||||||
Financial Services |
24,895 |
36,873 |
|||||
Total revenues |
1,118,894 |
1,162,756 |
|||||
Homebuilding Cost of Revenues: |
|||||||
Home sale cost of revenues |
828,603 |
901,470 |
|||||
Land sale cost of revenues |
5,011 |
22,018 |
|||||
833,614 |
923,488 |
||||||
Financial Services expenses |
3,322 |
22,588 |
|||||
Selling, general and administrative expenses |
144,887 |
129,626 |
|||||
Other expense, net |
13,831 |
4,772 |
|||||
Interest income |
(1,111) |
(1,173) |
|||||
Interest expense |
213 |
207 |
|||||
Equity in (earnings) loss of unconsolidated entities |
(5,891) |
898 |
|||||
Income before income taxes |
130,029 |
82,350 |
|||||
Income tax expense |
55,210 |
588 |
|||||
Net income |
$ |
74,819 |
$ |
81,762 |
|||
Per share: |
|||||||
Basic earnings |
$ |
0.19 |
$ |
0.21 |
|||
Diluted earnings |
$ |
0.19 |
$ |
0.21 |
|||
Cash dividends declared |
$ |
0.05 |
$ |
— |
|||
Number of shares used in calculation: |
|||||||
Basic |
383,991 |
384,228 |
|||||
Effect of dilutive securities |
3,815 |
6,093 |
|||||
Diluted |
387,806 |
390,321 |
PulteGroup, Inc. Condensed Consolidated Balance Sheets ($000's omitted) (Unaudited) |
|||||||
March 31, |
December 31, |
||||||
ASSETS |
|||||||
Cash and equivalents |
$ |
1,268,162 |
$ |
1,580,329 |
|||
Restricted cash |
75,596 |
72,715 |
|||||
House and land inventory |
4,034,294 |
3,978,561 |
|||||
Land held for sale |
72,531 |
61,735 |
|||||
Land, not owned, under option agreements |
22,200 |
24,024 |
|||||
Residential mortgage loans available-for-sale |
209,921 |
287,933 |
|||||
Investments in unconsolidated entities |
40,120 |
45,323 |
|||||
Other assets |
461,046 |
460,621 |
|||||
Intangible assets |
132,873 |
136,148 |
|||||
Deferred tax assets, net |
2,034,668 |
2,086,754 |
|||||
$ |
8,351,411 |
$ |
8,734,143 |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
Liabilities: |
|||||||
Accounts payable |
$ |
205,234 |
$ |
202,736 |
|||
Customer deposits |
168,573 |
134,858 |
|||||
Accrued and other liabilities |
1,257,854 |
1,377,750 |
|||||
Income tax liabilities |
205,810 |
206,015 |
|||||
Financial Services debt |
35,836 |
105,664 |
|||||
Senior notes |
1,814,041 |
2,058,168 |
|||||
3,687,348 |
4,085,191 |
||||||
Shareholders' equity |
4,664,063 |
4,648,952 |
|||||
$ |
8,351,411 |
$ |
8,734,143 |
PulteGroup, Inc. Consolidated Statements of Cash Flows ($000's omitted) (Unaudited) |
|||
Three Months Ended |
|||
March 31, |
|||
2014 |
2013 |
||
Cash flows from operating activities: |
|||
Net income |
$ 74,819 |
$ 81,762 |
|
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities: |
|||
Deferred income tax expense |
52,086 |
— |
|
Depreciation and amortization |
5,670 |
7,339 |
|
Stock-based compensation expense |
8,522 |
7,141 |
|
Equity in (earnings) loss of unconsolidated entities |
(5,891) |
898 |
|
Distributions of earnings from unconsolidated entities |
4,753 |
265 |
|
Loss on debt retirements |
8,584 |
— |
|
Other non-cash, net |
3,256 |
3,035 |
|
Increase (decrease) in cash due to: |
|||
Restricted cash |
(890) |
860 |
|
Inventories |
(68,812) |
99,760 |
|
Residential mortgage loans available-for-sale |
76,357 |
80,727 |
|
Other assets |
17,090 |
(370) |
|
Accounts payable, accrued and other liabilities |
(83,943) |
(8,795) |
|
Income tax liabilities |
(205) |
(2,002) |
|
Net cash provided by (used in) operating activities |
91,396 |
270,620 |
|
Cash flows from investing activities: |
|||
Distributions from unconsolidated entities |
6,385 |
200 |
|
Investments in unconsolidated entities |
(9) |
(593) |
|
Net change in loans held for investment |
(6,390) |
10 |
|
Change in restricted cash related to letters of credit |
(1,991) |
4,513 |
|
Proceeds from the sale of property and equipment |
23 |
59 |
|
Capital expenditures |
(17,865) |
(5,378) |
|
Net cash provided by (used in) investing activities |
(19,847) |
(1,189) |
|
Cash flows from financing activities: |
|||
Financial Services borrowings (repayments) |
(69,828) |
(82,164) |
|
Other borrowings (repayments) |
(250,013) |
(213) |
|
Stock option exercises |
5,295 |
7,537 |
|
Stock repurchases |
(50,105) |
(6,427) |
|
Dividends paid |
(19,065) |
— |
|
Net cash provided by (used in) financing activities |
(383,716) |
(81,267) |
|
Net increase (decrease) in cash and equivalents |
(312,167) |
188,164 |
|
Cash and equivalents at beginning of period |
1,580,329 |
1,404,760 |
|
Cash and equivalents at end of period |
$ 1,268,162 |
$ 1,592,924 |
|
Supplemental Cash Flow Information: |
|||
Interest paid (capitalized), net |
$ (19,556) |
$ (23,095) |
|
Income taxes paid (refunded), net |
$ (8,253) |
$ (3,026) |
PulteGroup, Inc. Segment Data ($000's omitted) (Unaudited) |
||||
Three Months Ended |
||||
March 31, |
||||
2014 |
2013 |
|||
HOMEBUILDING: |
||||
Home sale revenues |
$ 1,088,015 |
$ 1,099,752 |
||
Land sale revenues |
5,984 |
26,131 |
||
Total Homebuilding revenues |
1,093,999 |
1,125,883 |
||
Home sale cost of revenues |
828,603 |
901,470 |
||
Land sale cost of revenues |
5,011 |
22,018 |
||
Selling, general and administrative expenses |
144,887 |
129,626 |
||
Equity in (earnings) loss of unconsolidated entities |
(5,870) |
926 |
||
Other expense, net |
13,831 |
4,772 |
||
Interest income, net |
(898) |
(966) |
||
Income before income taxes |
$ 108,435 |
$ 68,037 |
||
FINANCIAL SERVICES: |
||||
Income before income taxes |
$ 21,594 |
$ 14,313 |
||
CONSOLIDATED: |
||||
Income before income taxes |
$ 130,029 |
$ 82,350 |
PulteGroup, Inc. Segment Data, continued ($000's omitted) (Unaudited) |
|||||
Three Months Ended |
|||||
March 31, |
|||||
2014 |
2013 |
||||
Home sale revenues |
$ 1,088,015 |
$ 1,099,752 |
|||
Closings - units |
|||||
Northeast |
343 |
302 |
|||
Southeast |
647 |
651 |
|||
Florida |
567 |
583 |
|||
Texas |
781 |
897 |
|||
North |
630 |
666 |
|||
Southwest |
468 |
734 |
|||
3,436 |
3,833 |
||||
Average selling price |
$ 317 |
$ 287 |
|||
Net new orders - units |
|||||
Northeast |
444 |
571 |
|||
Southeast |
824 |
959 |
|||
Florida |
850 |
804 |
|||
Texas |
1,172 |
1,080 |
|||
North |
892 |
969 |
|||
Southwest |
681 |
817 |
|||
4,863 |
5,200 |
||||
Net new orders - dollars (a) |
$ 1,608,406 |
$ 1,581,965 |
|||
Unit backlog |
|||||
Northeast |
722 |
891 |
|||
Southeast |
1,230 |
1,219 |
|||
Florida |
1,196 |
1,286 |
|||
Texas |
1,641 |
1,638 |
|||
North |
1,475 |
1,570 |
|||
Southwest |
935 |
1,221 |
|||
7,199 |
7,825 |
||||
Dollars in backlog |
$ 2,422,187 |
$ 2,413,753 |
|||
(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 |
|||
March 31, |
|||
2014 |
2013 |
||
MORTGAGE ORIGINATIONS: |
|||
Origination volume |
2,114 |
2,722 |
|
Origination principal |
$ 495,529 |
$ 621,997 |
|
Capture rate |
78.2% |
82.3% |
Supplemental Data ($000's omitted) (Unaudited) |
|||
Three Months Ended |
|||
March 31, |
|||
2014 |
2013 |
||
Interest in inventory, beginning of period |
$ 230,922 |
$ 331,880 |
|
Interest capitalized |
35,313 |
42,656 |
|
Interest expensed |
(40,616) |
(53,677) |
|
Interest in inventory, end of period |
$ 225,619 |
$ 320,859 |
|
Interest incurred |
$ 35,313 |
$ 42,656 |
SOURCE