- Q4 Pretax Income of
$267 Million Increased 15% from Prior Year - Q4 Net Income of
$217 Million , or$0.58 Per Share, Includes$0.16 Per Share of Tax and Insurance Benefits, Offset by$0.01 Per Share of Lease Exit Costs - Home Sale Gross Margin of 23.1%, Down 10 Basis Points from the Prior Year and Up 20 Basis Points Over Q3 2014
- Home Sale Revenues Increased 10% to
$1.8 Billion Driven by a 7% Increase in Closings to 5,316 Homes - Q4 Net New Orders Increased 1% to 3,232 Homes; Order Value Increased 2% to
$1.1 Billion - Q4 Backlog of 5,850 Homes With a Value of
$1.9 Billion - Quarter End Cash Balance of
$1.3 Billion After Repurchasing$98 Million of Stock in the Quarter - Debt-to-Capitalization of 27%, Down from 31% at Year-end 2013
"Through continued execution of our Value Creation strategy,
"We are optimistic heading into 2015 as buyer sentiment began improving in late November supporting stronger traffic and signup levels throughout December and into January. We believe the positive factors of an improving economy with declining energy costs, rising employment, lower mortgage rates and related fees, beneficial long-term demographic trends and a generally healthy supply of inventory, will continue to support a slow and sustained housing recovery. Within this environment, we remain focused on driving additional gains in construction and asset efficiency to deliver higher returns on invested capital. Consistent with our positive market view and long-term business strategy, we expect to use our capital to support future growth, while consistently returning funds to shareholders."
Fourth Quarter Results
Home sale revenues for the fourth quarter totaled
Home sale gross margin for the period was 23.1%, a decrease of 10 basis points from the prior year, but up 20 basis points over the third quarter of 2014. SG&A expense for the quarter of
As part of its corporate relocation, the Company recorded a fourth quarter charge in Other Expense, net of
For the quarter, the Company reported 3,232 net new orders, an increase of 1% from prior year orders of 3,214. The dollar value of net new orders increased 2% over the prior year to
The Company's financial services operations reported pretax income of
For the quarter, the Company reported
Through open-market transactions,
A conference call discussing
Forward-Looking Statements
This presentation 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, |
||||||||||||||
2014 |
2013 |
2014 |
2013 |
||||||||||||
Revenues: |
|||||||||||||||
Homebuilding |
|||||||||||||||
Home sale revenues |
$ |
1,776,469 |
$ |
1,612,923 |
$ |
5,662,171 |
$ |
5,424,309 |
|||||||
Land sale revenues |
9,995 |
12,036 |
34,554 |
114,335 |
|||||||||||
1,786,464 |
1,624,959 |
5,696,725 |
5,538,644 |
||||||||||||
Financial Services |
36,093 |
30,380 |
125,638 |
140,951 |
|||||||||||
Total revenues |
1,822,557 |
1,655,339 |
5,822,363 |
5,679,595 |
|||||||||||
Homebuilding Cost of Revenues: |
|||||||||||||||
Home sale cost of revenues |
1,366,584 |
1,238,103 |
4,343,249 |
4,310,528 |
|||||||||||
Land sale cost of revenues |
8,367 |
11,765 |
23,748 |
104,426 |
|||||||||||
1,374,951 |
1,249,868 |
4,366,997 |
4,414,954 |
||||||||||||
Financial Services expenses |
23,179 |
23,513 |
71,239 |
92,379 |
|||||||||||
Selling, general, and administrative expenses |
146,024 |
149,705 |
667,815 |
568,500 |
|||||||||||
Other expense, net |
13,183 |
1,588 |
38,745 |
80,753 |
|||||||||||
Interest income |
(1,200) |
(1,075) |
(4,632) |
(4,395) |
|||||||||||
Interest expense |
224 |
168 |
849 |
712 |
|||||||||||
Equity in earnings of unconsolidated entities |
(924) |
(848) |
(8,408) |
(1,130) |
|||||||||||
Income before income taxes |
267,120 |
232,420 |
689,758 |
527,822 |
|||||||||||
Income tax expense (benefit) |
50,025 |
12,367 |
215,420 |
(2,092,294) |
|||||||||||
Net income |
$ |
217,095 |
$ |
220,053 |
$ |
474,338 |
$ |
2,620,116 |
|||||||
Net income per share: |
|||||||||||||||
Basic |
$ |
0.58 |
$ |
0.58 |
$ |
1.27 |
$ |
6.79 |
|||||||
Diluted |
$ |
0.58 |
$ |
0.57 |
$ |
1.26 |
$ |
6.72 |
|||||||
Cash dividends declared |
$ |
0.08 |
$ |
0.05 |
$ |
0.23 |
$ |
0.15 |
|||||||
Number of shares used in calculation: |
|||||||||||||||
Basic |
369,533 |
379,879 |
370,377 |
383,077 |
|||||||||||
Effect of dilutive securities |
3,734 |
3,845 |
3,725 |
3,789 |
|||||||||||
Diluted |
373,267 |
383,724 |
374,102 |
386,866 |
PulteGroup, Inc. Condensed Consolidated Balance Sheets ($000's omitted) (Unaudited) |
|||||||
December 31, |
December 31, |
||||||
ASSETS |
|||||||
Cash and equivalents |
$ |
1,292,862 |
$ |
1,580,329 |
|||
Restricted cash |
16,358 |
72,715 |
|||||
House and land inventory |
4,392,100 |
3,978,561 |
|||||
Land held for sale |
101,190 |
61,735 |
|||||
Land, not owned, under option agreements |
30,186 |
24,024 |
|||||
Residential mortgage loans available-for-sale |
339,531 |
287,933 |
|||||
Investments in unconsolidated entities |
40,368 |
45,323 |
|||||
Other assets |
513,032 |
460,621 |
|||||
Intangible assets |
123,115 |
136,148 |
|||||
Deferred tax assets, net |
1,720,668 |
2,086,754 |
|||||
$ |
8,569,410 |
$ |
8,734,143 |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
Liabilities: |
|||||||
Accounts payable |
$ |
270,516 |
$ |
202,736 |
|||
Customer deposits |
142,642 |
134,858 |
|||||
Accrued and other liabilities |
1,343,774 |
1,377,750 |
|||||
Income tax liabilities |
48,722 |
206,015 |
|||||
Financial Services debt |
140,241 |
105,664 |
|||||
Senior notes |
1,818,561 |
2,058,168 |
|||||
Total liabilities |
3,764,456 |
4,085,191 |
|||||
Shareholders' equity |
4,804,954 |
4,648,952 |
|||||
$ |
8,569,410 |
$ |
8,734,143 |
PulteGroup, Inc. Consolidated Statements of Cash Flows ($000's omitted) (Unaudited) |
|||||||
Year Ended |
|||||||
December 31, |
|||||||
2014 |
2013 |
||||||
Cash flows from operating activities: |
|||||||
Net income |
$ |
474,338 |
$ |
2,620,116 |
|||
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities: |
|||||||
Deferred income tax expense |
223,769 |
(2,096,425) |
|||||
Write-down of land and deposits and pre-acquisition costs |
11,168 |
9,672 |
|||||
Depreciation and amortization |
39,864 |
31,587 |
|||||
Stock-based compensation expense |
29,292 |
30,480 |
|||||
Loss on debt retirements |
8,584 |
26,930 |
|||||
Equity in earnings of unconsolidated entities |
(8,408) |
(1,130) |
|||||
Distributions of earnings from unconsolidated entities |
4,932 |
2,049 |
|||||
Other non-cash, net |
9,567 |
9,375 |
|||||
Increase (decrease) in cash due to: |
|||||||
Restricted cash |
1,368 |
3,387 |
|||||
Inventories |
(346,596) |
265,064 |
|||||
Residential mortgage loans available-for-sale |
(53,734) |
28,448 |
|||||
Other assets |
(46,249) |
(38,190) |
|||||
Accounts payable, accrued and other liabilities |
(23,671) |
(17,377) |
|||||
Income tax liabilities |
(14,975) |
7,150 |
|||||
Net cash provided by operating activities |
309,249 |
881,136 |
|||||
Cash flows from investing activities: |
|||||||
Distributions from unconsolidated entities |
8,157 |
1,001 |
|||||
Investments in unconsolidated entities |
(9) |
(1,677) |
|||||
Net change in loans held for investment |
335 |
(12,265) |
|||||
Change in restricted cash related to letters of credit |
54,989 |
(4,152) |
|||||
Proceeds from the sale of property and equipment |
113 |
15 |
|||||
Capital expenditures |
(48,790) |
(28,899) |
|||||
Cash used for business acquisitions |
(82,419) |
— |
|||||
Net cash used in investing activities |
(67,624) |
(45,977) |
|||||
Cash flows from financing activities: |
|||||||
Financial Services borrowings (repayments) |
34,577 |
(33,131) |
|||||
Other borrowings (repayments) |
(250,631) |
(479,827) |
|||||
Stock option exercises |
15,627 |
19,411 |
|||||
Stock repurchases |
(253,019) |
(127,661) |
|||||
Dividends paid |
(75,646) |
(38,382) |
|||||
Net cash used in financing activities |
(529,092) |
(659,590) |
|||||
Net increase (decrease) in cash and equivalents |
(287,467) |
175,569 |
|||||
Cash and equivalents at beginning of period |
1,580,329 |
1,404,760 |
|||||
Cash and equivalents at end of period |
$ |
1,292,862 |
$ |
1,580,329 |
|||
Supplemental Cash Flow Information: |
|||||||
Interest paid (capitalized), net |
$ |
(4,561) |
$ |
(171) |
|||
Income taxes paid (refunded), net |
$ |
1,030 |
$ |
373 |
PulteGroup, Inc. Segment Data ($000's omitted) (Unaudited) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
2014 |
2013 |
2014 |
2013 |
||||||||||||
HOMEBUILDING: |
|||||||||||||||
Home sale revenues |
$ |
1,776,469 |
$ |
1,612,923 |
$ |
5,662,171 |
$ |
5,424,309 |
|||||||
Land sale revenues |
9,995 |
12,036 |
34,554 |
114,335 |
|||||||||||
Total Homebuilding revenues |
1,786,464 |
1,624,959 |
5,696,725 |
5,538,644 |
|||||||||||
Home sale cost of revenues |
1,366,584 |
1,238,103 |
4,343,249 |
4,310,528 |
|||||||||||
Land sale cost of revenues |
8,367 |
11,765 |
23,748 |
104,426 |
|||||||||||
Selling, general, and administrative expenses |
146,024 |
149,705 |
667,815 |
568,500 |
|||||||||||
Equity in earnings of unconsolidated entities |
(836) |
(806) |
(8,226) |
(993) |
|||||||||||
Other expense, net |
13,183 |
1,588 |
38,745 |
80,753 |
|||||||||||
Interest income, net |
(976) |
(907) |
(3,783) |
(3,683) |
|||||||||||
Income before income taxes |
$ |
254,118 |
$ |
225,511 |
$ |
635,177 |
$ |
479,113 |
|||||||
FINANCIAL SERVICES: |
|||||||||||||||
Income before income taxes |
$ |
13,002 |
$ |
6,909 |
$ |
54,581 |
$ |
48,709 |
|||||||
CONSOLIDATED: |
|||||||||||||||
Income before income taxes |
$ |
267,120 |
$ |
232,420 |
$ |
689,758 |
$ |
527,822 |
PulteGroup, Inc. Segment Data, continued ($000's omitted) (Unaudited) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
2014 |
2013 |
2014 |
2013 |
||||||||||||
Home sale revenues |
$ |
1,776,469 |
$ |
1,612,923 |
$ |
5,662,171 |
$ |
5,424,309 |
|||||||
Closings - units |
|||||||||||||||
Northeast |
496 |
623 |
1,568 |
1,835 |
|||||||||||
Southeast |
895 |
813 |
3,160 |
3,022 |
|||||||||||
Florida |
808 |
755 |
2,752 |
2,747 |
|||||||||||
Texas |
1,121 |
935 |
3,750 |
3,768 |
|||||||||||
North |
1,278 |
1,068 |
3,684 |
3,401 |
|||||||||||
Southwest |
718 |
770 |
2,282 |
2,993 |
|||||||||||
5,316 |
4,964 |
17,196 |
17,766 |
||||||||||||
Average selling price |
$ |
334 |
$ |
325 |
$ |
329 |
$ |
305 |
|||||||
Net new orders - units |
|||||||||||||||
Northeast |
248 |
315 |
1,408 |
1,834 |
|||||||||||
Southeast |
615 |
604 |
3,075 |
3,164 |
|||||||||||
Florida |
567 |
501 |
2,841 |
2,595 |
|||||||||||
Texas |
727 |
682 |
3,773 |
3,563 |
|||||||||||
North |
653 |
682 |
3,311 |
3,347 |
|||||||||||
Southwest |
422 |
430 |
2,244 |
2,577 |
|||||||||||
3,232 |
3,214 |
16,652 |
17,080 |
||||||||||||
Net new orders - dollars (a) |
$ |
1,105,042 |
$ |
1,081,971 |
$ |
5,558,937 |
$ |
5,394,566 |
|||||||
December 31, |
|||||||||||||||
2014 |
2013 |
||||||||||||||
Unit backlog |
|||||||||||||||
Northeast |
461 |
621 |
|||||||||||||
Southeast |
968 |
1,053 |
|||||||||||||
Florida |
1,002 |
913 |
|||||||||||||
Texas |
1,273 |
1,250 |
|||||||||||||
North |
1,462 |
1,213 |
|||||||||||||
Southwest |
684 |
722 |
|||||||||||||
5,850 |
5,772 |
||||||||||||||
Dollars in backlog |
$ |
1,943,861 |
$ |
1,901,796 |
|||||||||||
(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, |
||||||||||||||
2014 |
2013 |
2014 |
2013 |
||||||||||||
MORTGAGE ORIGINATIONS: |
|||||||||||||||
Origination volume |
3,323 |
3,158 |
10,805 |
11,818 |
|||||||||||
Origination principal |
$ |
839,856 |
$ |
766,812 |
$ |
2,656,683 |
$ |
2,765,509 |
|||||||
Capture rate |
81.4 |
% |
79.4 |
% |
80.2 |
% |
80.2 |
% |
|||||||
Supplemental Data ($000's omitted) (Unaudited) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
2014 |
2013 |
2014 |
2013 |
||||||||||||
Interest in inventory, beginning of period |
$ |
190,342 |
$ |
266,524 |
$ |
230,922 |
$ |
331,880 |
|||||||
Interest capitalized |
32,651 |
35,580 |
131,444 |
154,107 |
|||||||||||
Interest expensed |
(55,355) |
(71,182) |
(194,728) |
(255,065) |
|||||||||||
Interest in inventory, end of period |
$ |
167,638 |
$ |
230,922 |
$ |
167,638 |
$ |
230,922 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/pultegroup-reports-financial-results-for-2014-fourth-quarter-300027335.html
SOURCE