- Q1 Net Income of
$55 Million , or$0.15 Per Share; Prior Year Net Income of$75 Million , or$0.19 Per Share, Includes a Net Benefit of$0.02 Per Share from Reversal of Mortgage Reserves Partially Offset by Debt Redemption Charges - Net New Orders Increased 6% to 5,139 Homes
- Value of Net New Orders Increased 6% to
$1.7 Billion - Q1 Community Count of 613, Up 5% Over the Prior Year
- Average Closing Price Increased 2% to
$323,000 Per Home - Gross Margin of 22.7% Consistent with Company Guidance
- Unit Backlog Increased 6% to 7,624 Homes Valued at
$2.6 Billion - Repurchased
$100 Million of Stock in the Quarter
"The improving demand conditions that we noted toward the end of 2014 carried through the first quarter of 2015 and provided a strong start to the spring selling season," said
"Although Q1 earnings were impacted by higher income tax expense, acquisition accounting and construction delays which slowed closings, we generated a 6% increase in unit signups while maintaining high absorption paces and low incentive levels. Given the favorable demand environment and ongoing benefits from our Value Creation initiatives, we are well positioned to deliver another year of excellent operating and financial results," said Dugas.
Home sale revenues for the first quarter were
Home sale gross margin for the quarter was 22.7% which was in line with Company guidance. Margins for the period reflect the impact of a 30 basis point reduction from acquisition accounting associated with the Company's 2014 purchase of certain assets from
For the quarter, net new orders gained 6% over the prior year to 5,139 homes. The dollar value of net new orders also increased 6% over the prior year to
The Company's financial services operations reported pretax income of
Income tax expense for the period was
The Company ended the quarter with
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, |
|||||||
2015 |
2014 |
||||||
Revenues: |
|||||||
Homebuilding |
|||||||
Home sale revenues |
$ |
1,088,158 |
$ |
1,088,015 |
|||
Land sale revenues |
17,542 |
5,984 |
|||||
1,105,700 |
1,093,999 |
||||||
Financial Services |
27,598 |
24,895 |
|||||
Total revenues |
1,133,298 |
1,118,894 |
|||||
Homebuilding Cost of Revenues: |
|||||||
Home sale cost of revenues |
841,145 |
828,603 |
|||||
Land sale cost of revenues |
13,378 |
5,011 |
|||||
854,523 |
833,614 |
||||||
Financial Services expenses |
22,541 |
3,322 |
|||||
Selling, general and administrative expenses |
161,312 |
144,887 |
|||||
Other expense, net |
1,136 |
13,831 |
|||||
Interest income |
(1,099) |
(1,111) |
|||||
Interest expense |
187 |
213 |
|||||
Equity in earnings of unconsolidated entities |
(1,107) |
(5,891) |
|||||
Income before income taxes |
95,805 |
130,029 |
|||||
Income tax expense |
40,834 |
55,210 |
|||||
Net income |
$ |
54,971 |
$ |
74,819 |
|||
Per share: |
|||||||
Basic earnings |
$ |
0.15 |
$ |
0.19 |
|||
Diluted earnings |
$ |
0.15 |
$ |
0.19 |
|||
Cash dividends declared |
$ |
0.08 |
$ |
0.05 |
|||
Number of shares used in calculation: |
|||||||
Basic |
366,748 |
383,991 |
|||||
Effect of dilutive securities |
3,362 |
3,815 |
|||||
Diluted |
370,110 |
387,806 |
PulteGroup, Inc. Condensed Consolidated Balance Sheets ($000's omitted) (Unaudited) |
|||||||
March 31, |
December 31, |
||||||
ASSETS |
|||||||
Cash and equivalents |
$ |
1,053,927 |
$ |
1,292,862 |
|||
Restricted cash |
14,334 |
16,358 |
|||||
House and land inventory |
4,633,050 |
4,392,100 |
|||||
Land held for sale |
90,529 |
101,190 |
|||||
Land, not owned, under option agreements |
62,261 |
30,186 |
|||||
Residential mortgage loans available-for-sale |
226,292 |
339,531 |
|||||
Investments in unconsolidated entities |
41,474 |
40,368 |
|||||
Other assets |
511,665 |
513,032 |
|||||
Intangible assets |
119,890 |
123,115 |
|||||
Deferred tax assets, net |
1,679,863 |
1,720,668 |
|||||
$ |
8,433,285 |
$ |
8,569,410 |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
Liabilities: |
|||||||
Accounts payable |
$ |
271,165 |
$ |
270,516 |
|||
Customer deposits |
177,763 |
142,642 |
|||||
Accrued and other liabilities |
1,307,387 |
1,343,774 |
|||||
Income tax liabilities |
47,346 |
48,722 |
|||||
Financial Services debt |
67,563 |
140,241 |
|||||
Senior notes |
1,820,067 |
1,818,561 |
|||||
3,691,291 |
3,764,456 |
||||||
Shareholders' equity |
4,741,994 |
4,804,954 |
|||||
$ |
8,433,285 |
$ |
8,569,410 |
PulteGroup, Inc. Consolidated Statements of Cash Flows ($000's omitted) (Unaudited) |
|||||||
Three Months Ended |
|||||||
March 31, |
|||||||
2015 |
2014 |
||||||
Cash flows from operating activities: |
|||||||
Net income |
$ |
54,971 |
$ |
74,819 |
|||
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities: |
|||||||
Deferred income tax expense |
40,805 |
52,086 |
|||||
Depreciation and amortization |
11,062 |
8,942 |
|||||
Stock-based compensation expense |
8,280 |
8,522 |
|||||
Equity in earnings of unconsolidated entities |
(1,107) |
(5,891) |
|||||
Distributions of earnings from unconsolidated entities |
— |
4,753 |
|||||
Loss on debt retirements |
— |
8,584 |
|||||
Other non-cash, net |
5,917 |
3,256 |
|||||
Increase (decrease) in cash due to: |
|||||||
Restricted cash |
(1,686) |
(890) |
|||||
Inventories |
(230,993) |
(68,812) |
|||||
Residential mortgage loans available-for-sale |
119,976 |
76,357 |
|||||
Other assets |
(3,830) |
13,818 |
|||||
Accounts payable, accrued and other liabilities |
(27,416) |
(83,943) |
|||||
Income tax liabilities |
(1,376) |
(205) |
|||||
Net cash provided by (used in) operating activities |
(25,397) |
91,396 |
|||||
Cash flows from investing activities: |
|||||||
Distributions from unconsolidated entities |
— |
6,385 |
|||||
Investments in unconsolidated entities |
— |
(9) |
|||||
Net change in loans held for investment |
917 |
(6,390) |
|||||
Change in restricted cash related to letters of credit |
3,710 |
(1,991) |
|||||
Proceeds from the sale of property and equipment |
5 |
23 |
|||||
Capital expenditures |
(14,517) |
(17,865) |
|||||
Net cash provided by (used in) investing activities |
(9,885) |
(19,847) |
|||||
Cash flows from financing activities: |
|||||||
Financial Services borrowings (repayments) |
(72,678) |
(69,828) |
|||||
Other borrowings (repayments) |
— |
(250,013) |
|||||
Stock option exercises |
6,596 |
5,295 |
|||||
Stock repurchases |
(107,955) |
(50,105) |
|||||
Dividends paid |
(29,616) |
(19,065) |
|||||
Net cash provided by (used in) financing activities |
(203,653) |
(383,716) |
|||||
Net increase (decrease) in cash and equivalents |
(238,935) |
(312,167) |
|||||
Cash and equivalents at beginning of period |
1,292,862 |
1,580,329 |
|||||
Cash and equivalents at end of period |
$ |
1,053,927 |
$ |
1,268,162 |
|||
Supplemental Cash Flow Information: |
|||||||
Interest paid (capitalized), net |
$ |
(21,412) |
$ |
(19,556) |
|||
Income taxes paid (refunded), net |
$ |
(1,997) |
$ |
(8,253) |
PulteGroup, Inc. Segment Data ($000's omitted) (Unaudited) |
|||||||
Three Months Ended |
|||||||
March 31, |
|||||||
2015 |
2014 |
||||||
HOMEBUILDING: |
|||||||
Home sale revenues |
$ |
1,088,158 |
$ |
1,088,015 |
|||
Land sale revenues |
17,542 |
5,984 |
|||||
Total Homebuilding revenues |
1,105,700 |
1,093,999 |
|||||
Home sale cost of revenues |
841,145 |
828,603 |
|||||
Land sale cost of revenues |
13,378 |
5,011 |
|||||
Selling, general and administrative expenses |
161,312 |
144,887 |
|||||
Equity in earnings of unconsolidated entities |
(1,107) |
(5,870) |
|||||
Other expense, net |
1,136 |
13,831 |
|||||
Interest income, net |
(912) |
(898) |
|||||
Income before income taxes |
$ |
90,748 |
$ |
108,435 |
|||
FINANCIAL SERVICES: |
|||||||
Income before income taxes |
$ |
5,057 |
$ |
21,594 |
|||
CONSOLIDATED: |
|||||||
Income before income taxes |
$ |
95,805 |
$ |
130,029 |
PulteGroup, Inc. Segment Data, continued ($000's omitted) (Unaudited) |
|||||||
Three Months Ended |
|||||||
March 31, |
|||||||
2015 |
2014 |
||||||
Home sale revenues |
$ |
1,088,158 |
$ |
1,088,015 |
|||
Closings - units |
|||||||
Northeast |
248 |
343 |
|||||
Southeast |
612 |
647 |
|||||
Florida |
601 |
567 |
|||||
Texas |
746 |
781 |
|||||
North |
735 |
630 |
|||||
Southwest |
423 |
468 |
|||||
3,365 |
3,436 |
||||||
Average selling price |
$ |
323 |
$ |
317 |
|||
Net new orders - units |
|||||||
Northeast |
437 |
444 |
|||||
Southeast |
938 |
824 |
|||||
Florida |
911 |
850 |
|||||
Texas |
1,117 |
1,172 |
|||||
North |
996 |
892 |
|||||
Southwest |
740 |
681 |
|||||
5,139 |
4,863 |
||||||
Net new orders - dollars (a) |
$ |
1,708,390 |
$ |
1,608,406 |
|||
Unit backlog |
|||||||
Northeast |
650 |
722 |
|||||
Southeast |
1,294 |
1,230 |
|||||
Florida |
1,312 |
1,196 |
|||||
Texas |
1,644 |
1,641 |
|||||
North |
1,723 |
1,475 |
|||||
Southwest |
1,001 |
935 |
|||||
7,624 |
7,199 |
||||||
Dollars in backlog |
$ |
2,564,092 |
$ |
2,422,187 |
|||
PulteGroup, Inc. Segment Data, continued ($000's omitted) (Unaudited) |
|||||||
Three Months Ended |
|||||||
March 31, |
|||||||
2015 |
2014 |
||||||
MORTGAGE ORIGINATIONS: |
|||||||
Origination volume |
2,116 |
2,114 |
|||||
Origination principal |
$ |
514,788 |
$ |
495,529 |
|||
Capture rate |
81.6 |
% |
78.2 |
% |
|||
Supplemental Data ($000's omitted) (Unaudited) |
|||||||
Three Months Ended |
|||||||
March 31, |
|||||||
2015 |
2014 |
||||||
Interest in inventory, beginning of period |
$ |
167,638 |
$ |
230,922 |
|||
Interest capitalized |
30,803 |
35,313 |
|||||
Interest expensed |
(31,554) |
(40,616) |
|||||
Interest in inventory, end of period |
$ |
166,887 |
$ |
225,619 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/pultegroup-inc-reports-first-quarter-2015-financial-results-300070501.html
SOURCE