- Q4 Net Income of
$14 Million , or$0.04 Per Share - Q4 Net Income Includes
$66 Million , or$0.17 Per Share, of Mortgage, Land and Debt Repurchase Charges, Partially Offset by$39 Million , or$0.10 Per Share, of Land-Sale Gains and Tax Benefits - Adjusted Q4 Home Sale Gross Margin Increases 200 Basis Points to 18.6%
- SG&A Reduced to
$117 Million , or 10% of Home Sale Revenues - 8% Increase in Q4 Net New Orders Generated from 11% Fewer Communities
- Completed
$64 Million of Land Divestitures - Repurchased
$257 Million of Senior Debt in Q4; Full-Year Debt Retirements of$324 Million - Ended the Year with
$1.2 Billion in Cash
In the prior year fourth quarter,
"We are pleased to report
Dugas continued, "The 2011 U.S. housing market demonstrated continued stability, although at extremely low levels of new home sales. Favorable long-term demographic drivers and improvements in a number of underlying housing data reports provide reasons for optimism heading into 2012. Although challenging macroeconomic conditions persist, we believe the progress we have made across our core homebuilding operations should enable the Company to be profitable for the full year of 2012."
Fourth Quarter Results
Revenue from home sales in the fourth quarter ended
Fourth quarter cost of sales related to home sales totaled
The Company's selling, general & administrative (SG&A) expense for the period was
For the quarter, the Company reported 3,084 net new orders. Prior year orders of 3,044 reflect a one-time pick up of 200 signups resulting from a change in the Company's order recognition process. Excluding these 200 orders,
For the quarter, the Company's financial services operations reported a pretax loss of
In the fourth quarter,
In the fourth quarter, the Company recorded an income tax benefit of
The Company used available cash to repurchase
Full-Year Results
For the year ended
Revenues from home sales for the period were
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, |
||||||||
2011 |
2010 |
2011 |
2010 |
||||||
Revenues: |
|||||||||
Homebuilding |
|||||||||
Home sale revenues |
$ 1,167,141 |
$ 1,155,169 |
$ 3,950,743 |
$ 4,419,812 |
|||||
Land sale revenues |
63,830 |
2,176 |
82,853 |
27,815 |
|||||
1,230,971 |
1,157,345 |
4,033,596 |
4,447,627 |
||||||
Financial Services |
31,374 |
27,925 |
103,094 |
121,663 |
|||||
Total revenues |
1,262,345 |
1,185,270 |
4,136,690 |
4,569,290 |
|||||
Homebuilding Cost of Revenues: |
|||||||||
Home sale cost of revenues |
1,021,873 |
1,099,046 |
3,444,398 |
4,006,385 |
|||||
Land sale cost of revenues |
57,497 |
37,145 |
59,279 |
53,555 |
|||||
1,079,370 |
1,136,191 |
3,503,677 |
4,059,940 |
||||||
Financial Services expenses |
58,836 |
22,789 |
137,666 |
116,122 |
|||||
Selling, general, and administrative expenses |
117,204 |
150,738 |
519,583 |
895,102 |
|||||
Other expense (income), net |
18,337 |
68,613 |
293,102 |
742,385 |
|||||
Interest income |
(1,351) |
(1,859) |
(5,055) |
(9,531) |
|||||
Interest expense |
323 |
440 |
1,313 |
2,729 |
|||||
Equity in (earnings) loss of unconsolidated entities |
(1,299) |
(1,167) |
(3,296) |
(2,911) |
|||||
Income (loss) before income taxes |
(9,075) |
(190,475) |
(310,300) |
(1,234,546) |
|||||
Income tax expense (benefit) |
(22,896) |
(25,047) |
(99,912) |
(137,817) |
|||||
Net income (loss) |
$ 13,821 |
$ (165,428) |
$ (210,388) |
$ (1,096,729) |
|||||
Per share data: |
|||||||||
Net income (loss): |
|||||||||
Basic |
$ 0.04 |
$ (0.44) |
$ (0.55) |
$ (2.90) |
|||||
Diluted |
$ 0.04 |
$ (0.44) |
$ (0.55) |
$ (2.90) |
|||||
Cash dividends declared |
$ - |
$ - |
$ - |
$ - |
|||||
Number of shares used in calculation: |
|||||||||
Basic |
380,149 |
379,115 |
379,877 |
378,585 |
|||||
Diluted |
381,261 |
379,115 |
379,877 |
378,585 |
|||||
PulteGroup, Inc. |
||||
Condensed Consolidated Balance Sheets |
||||
($000's omitted) |
||||
(Unaudited) |
||||
December 31, |
December 31, |
|||
2011 |
2010 |
|||
ASSETS |
||||
Cash and equivalents |
$ 1,083,071 |
$ 1,483,390 |
||
Restricted cash |
101,860 |
24,601 |
||
House and land inventory |
4,636,468 |
4,781,813 |
||
Land held for sale |
135,307 |
71,055 |
||
Land, not owned, under option agreements |
24,905 |
50,781 |
||
Residential mortgage loans available-for-sale |
258,075 |
176,164 |
||
Investments in unconsolidated entities |
35,988 |
46,313 |
||
Income taxes receivable |
27,154 |
81,307 |
||
Other assets |
420,444 |
567,963 |
||
Intangible assets, net |
162,348 |
175,448 |
||
Goodwill |
- |
240,541 |
||
$ 6,885,620 |
$ 7,699,376 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||
Liabilities: |
||||
Accounts payable |
$ 196,447 |
$ 226,466 |
||
Customer deposits |
46,960 |
51,727 |
||
Accrued and other liabilities |
1,411,941 |
1,599,940 |
||
Income tax liabilities |
203,313 |
294,408 |
||
Senior notes |
3,088,344 |
3,391,668 |
||
Total liabilities |
4,947,005 |
5,564,209 |
||
Shareholders' equity |
1,938,615 |
2,135,167 |
||
$ 6,885,620 |
$ 7,699,376 |
|||
PulteGroup, Inc. |
||||
Consolidated Statements of Cash Flows |
||||
($000's omitted) |
||||
(Unaudited) |
||||
Year Ended |
||||
December 31, |
||||
2011 |
2010 |
|||
Cash flows from operating activities: |
||||
Net income (loss) |
$ (210,388) |
$ (1,096,729) |
||
Adjustments to reconcile net income (loss) to net cash provided by |
||||
(used in) operating activities: |
||||
Write-down of land and deposits and pre-acquisition costs |
35,786 |
214,444 |
||
Goodwill impairments |
240,541 |
656,298 |
||
Amortization and depreciation |
32,098 |
45,660 |
||
Stock-based compensation expense |
16,459 |
32,081 |
||
Loss on debt repurchases |
5,638 |
38,920 |
||
Equity in (earnings) loss of unconsolidated entities |
(3,296) |
(2,911) |
||
Distributions of earnings from unconsolidated entities |
7,083 |
5,512 |
||
Other, net |
6,718 |
5,862 |
||
Increase (decrease) in cash due to: |
||||
Restricted cash |
5,940 |
7,775 |
||
Inventories |
54,891 |
(28,754) |
||
Residential mortgage loans available-for-sale |
(82,113) |
(7,991) |
||
Other assets |
133,788 |
102,103 |
||
Accounts payable, accrued and other liabilities |
(188,981) |
(188,779) |
||
Income taxes receivable |
54,153 |
873,879 |
||
Income tax liabilities |
(91,095) |
(66,513) |
||
Net cash provided by (used in) operating activities |
17,222 |
590,857 |
||
Cash flows from investing activities: |
||||
Distributions from unconsolidated entities |
4,531 |
4,231 |
||
Investments in unconsolidated entities |
(4,603) |
(22,890) |
||
Net change in loans held for investment |
325 |
12,603 |
||
Change in restricted cash related to letters of credit |
(83,199) |
- |
||
Proceeds from the sale of fixed assets |
10,555 |
1,780 |
||
Capital expenditures |
(21,238) |
(15,179) |
||
Net cash provided by (used in) investing activities |
(93,629) |
(19,455) |
||
Cash flows from financing activities: |
||||
Net repayments (borrowings) under Financial Services credit arrangements |
- |
(18,394) |
||
Repayment of other borrowings |
(321,076) |
(934,650) |
||
Issuance of common stock |
- |
8,668 |
||
Stock repurchases |
(2,836) |
(4,023) |
||
Net cash provided by (used in) financing activities |
(323,912) |
(948,399) |
||
Net increase (decrease) in cash and equivalents |
(400,319) |
(376,997) |
||
Cash and equivalents at beginning of period |
1,483,390 |
1,860,387 |
||
Cash and equivalents at end of period |
$ 1,083,071 |
$ 1,483,390 |
||
Supplemental Cash Flow Information: |
||||
Interest paid (capitalized), net |
$ (9,623) |
$ 18,367 |
||
Income taxes paid (refunded), net |
$ (62,167) |
$ (941,283) |
||
PulteGroup, Inc. |
||||||||
Segment Data |
||||||||
($000's omitted) |
||||||||
(Unaudited) |
||||||||
Three Months Ended |
Year Ended |
|||||||
December 31, |
December 31, |
|||||||
2011 |
2010 |
2011 |
2010 |
|||||
HOMEBUILDING: |
||||||||
Home sale revenues |
$ 1,167,141 |
$ 1,155,169 |
$ 3,950,743 |
$ 4,419,812 |
||||
Land sale revenues |
63,830 |
2,176 |
82,853 |
27,815 |
||||
Total Homebuilding revenues |
1,230,971 |
1,157,345 |
4,033,596 |
4,447,627 |
||||
Home sale cost of revenues |
1,021,873 |
1,099,046 |
3,444,398 |
4,006,385 |
||||
Land sale cost of revenues |
57,497 |
37,145 |
59,279 |
53,555 |
||||
Selling, general, and administrative expenses |
117,204 |
150,738 |
519,583 |
895,102 |
||||
Equity in (earnings) loss of unconsolidated entities |
(1,263) |
(1,044) |
(3,194) |
(2,843) |
||||
Other (income) expense, net |
18,337 |
68,613 |
293,102 |
742,385 |
||||
Interest (income) expense, net |
(1,028) |
(1,419) |
(3,742) |
(6,802) |
||||
Income (loss) before income taxes |
$ 18,351 |
$ (195,734) |
$ (275,830) |
$ (1,240,155) |
||||
FINANCIAL SERVICES: |
||||||||
Income (loss) before income taxes |
$ (27,426) |
$ 5,259 |
$ (34,470) |
$ 5,609 |
||||
CONSOLIDATED: |
||||||||
Income (loss) before income taxes |
$ (9,075) |
$ (190,475) |
$ (310,300) |
$ (1,234,546) |
||||
PulteGroup, Inc. |
|||||||||
Segment Data, continued |
|||||||||
($000's omitted) |
|||||||||
(Unaudited) |
|||||||||
Three Months Ended |
Year Ended |
||||||||
December 31, |
December 31, |
||||||||
2011 |
2010 |
2011 |
2010 |
||||||
Home sale revenues |
$ 1,167,141 |
$ 1,155,169 |
$ 3,950,743 |
$ 4,419,812 |
|||||
Closings (units) |
|||||||||
Northeast |
649 |
603 |
1,880 |
2,083 |
|||||
Southeast |
739 |
752 |
2,771 |
3,095 |
|||||
Florida |
596 |
629 |
2,251 |
2,224 |
|||||
Texas |
822 |
817 |
3,327 |
3,563 |
|||||
North |
742 |
764 |
2,579 |
3,055 |
|||||
Southwest |
755 |
840 |
2,467 |
3,075 |
|||||
4,303 |
4,405 |
15,275 |
17,095 |
||||||
Average selling price |
$ 271 |
$ 262 |
$ 259 |
$ 259 |
|||||
Net new orders - units |
|||||||||
Northeast |
371 |
366 |
1,749 |
1,650 |
|||||
Southeast |
534 |
589 |
2,642 |
2,747 |
|||||
Florida |
470 |
390 |
2,314 |
2,046 |
|||||
Texas |
597 |
628 |
3,278 |
3,129 |
|||||
North |
586 |
533 |
2,635 |
2,716 |
|||||
Southwest |
526 |
538 |
2,597 |
2,860 |
|||||
3,084 |
3,044 |
15,215 |
15,148 |
||||||
Net new orders - dollars (a) |
$ 828,154 |
$ 765,915 |
$ 3,953,829 |
$ 3,898,950 |
|||||
As of |
|||||||||
December 31, |
|||||||||
2011 |
2010 |
||||||||
Unit backlog |
|||||||||
Northeast |
425 |
556 |
|||||||
Southeast |
602 |
731 |
|||||||
Florida |
658 |
595 |
|||||||
Texas |
825 |
874 |
|||||||
North |
709 |
653 |
|||||||
Southwest |
705 |
575 |
|||||||
3,924 |
3,984 |
||||||||
Dollars in backlog |
$ 1,059,649 |
$ 1,056,563 |
|||||||
(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, |
|||||||
2011 |
2010 |
2011 |
2010 |
|||||
MORTGAGE ORIGINATIONS: |
||||||||
Origination volume |
2,815 |
2,817 |
9,482 |
10,770 |
||||
Origination principal |
$ 622,473 |
$ 599,793 |
$ 1,986,225 |
$ 2,273,394 |
||||
Capture rate percentage |
81.8% |
80.7% |
78.5% |
77.5% |
||||
Supplemental Information |
||||||||
($000's omitted) |
||||||||
(Unaudited) |
||||||||
Three Months Ended |
Year Ended |
|||||||
December 31, |
December 31, |
|||||||
2011 |
2010 |
2011 |
2010 |
|||||
Interest in inventory, beginning of period |
$ 365,343 |
$ 329,915 |
$ 323,379 |
$ 239,365 |
||||
Interest capitalized |
53,704 |
60,953 |
221,071 |
264,932 |
||||
Interest expensed |
(63,979) |
(67,489) |
(189,382) |
(180,918) |
||||
Interest in inventory, end of period |
$ 355,068 |
$ 323,379 |
$ 355,068 |
$ 323,379 |
||||
Interest incurred |
$ 53,704 |
$ 60,953 |
$ 221,071 |
$ 266,474 |
||||
PulteGroup, Inc. 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 SEC's rules and should be considered in addition to, rather than as a substitute for, the comparable GAAP financial measure as a measure of our operating performance. Management and our local divisions use this measure in evaluating the operating performance of each community and in making strategic decisions regarding sales pricing, construction and development pace, product mix, and other daily operating decisions. We believe it is a relevant and useful measure to investors for evaluating our performance through gross profit generated on homes delivered during a given period and for comparing our operating performance to other companies in the homebuilding industry. Although other companies in the homebuilding industry report similar information, the methods used may differ. We urge investors to understand the methods used by other companies in the homebuilding industry to calculate gross margins and any adjustments thereto before comparing our measure to that of such other companies. The following tables set 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 |
$ 1,167,141 |
$ 1,101,368 |
$ 899,763 |
$ 782,471 |
$ 1,155,169 |
|||||||
Home sale cost of revenues |
(1,021,873) |
(947,817) |
(789,678) |
(685,030) |
(1,099,046) |
|||||||
Home sale gross margin |
145,268 |
153,551 |
110,085 |
97,441 |
56,123 |
|||||||
Add: |
||||||||||||
Impairments (a) |
7,885 |
526 |
2,046 |
41 |
67,880 |
|||||||
Capitalized interest amortization (a) |
63,979 |
48,693 |
41,894 |
34,816 |
67,489 |
|||||||
Merger-related costs (b) |
493 |
591 |
366 |
280 |
282 |
|||||||
Adjusted home sale gross margin |
$ 217,625 |
$ 203,361 |
$ 154,391 |
$ 132,578 |
$ 191,774 |
|||||||
Home sale gross margin as a percentage |
||||||||||||
of home sale revenues |
12.4% |
13.9% |
12.2% |
12.5% |
4.9% |
|||||||
Adjusted home sale gross margin as a |
||||||||||||
percentage of home sale revenues |
18.6% |
18.5% |
17.2% |
16.9% |
16.6% |
|||||||
(a) |
Write-offs of capitalized interest related to impairments are reflected in capitalized interest amortization. |
|||||||||||
(b) |
Home sale gross margin was adversely impacted by the amortization of a fair value adjustment to homes under construction inventory acquired with the Centex merger. This fair value adjustment is being amortized as an increase to cost of sales over the related home closings. |
|||||||||||
SOURCE
Investors: Jim Zeumer, +1-248-433-4502, jim.zeumer@pultegroup.com