- Q2 Earnings of
$0.09 Per Share After Charges of$0.17 Per Share Resulting from a Contractual Dispute, Debt Repurchases, and its Previously Announced Corporate Relocation - Home Sale Revenues Increased 19% to
$1.2 Billion , as Average Selling Prices Gained 9% to$294,000 - Adjusted Gross Margin of 23.9% Increased 360 Basis Points Over Prior Year and 100 Basis Points Over Q1 2013
- Backlog Value Increased 25% to
$2.7 Billion ; Unit Backlog Up 13% to 8,558 Homes - Quarter-End Cash of
$1.3 Billion After Retiring$434 Million of Notes During the Quarter; Net Debt-to-Capitalization Ratio Lowered to 26% - Company Declares
$0.05 Per Share Cash Dividend - Share Repurchase Authorization Increased by $250 Million to $352 Million
"The U.S. housing market continues to gain momentum and remains solidly on track towards a sustained, long-term recovery," said
"Our results show continued success in driving earnings growth through more efficient homebuilding operations, which is critical to our focus on delivering higher returns on invested capital and returns to our shareholders. The strong cash flows being generated by our operations are providing us with tremendous financial flexibility to fund our operations, while continuing to strengthen our overall financial profile."
Second Quarter Results
Home sale revenues for the second quarter increased 19% to
For the quarter, the Company's homebuilding operations generated pretax income of
Net new orders for the second quarter were 4,885 homes, which is a decrease of 12% from the prior year. On a dollar basis, signup value was
The Company's financial services operations reported second quarter pretax income of
Company Announces Quarterly Dividend and Expansion of Share Repurchase Authorization
In a separate release,
The Company also announced that its Board of Directors approved a share repurchase authorization for an additional
"The decisions to pay a dividend and increase our repurchase authorization illustrate our confidence in the long-term prospects of
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 |
Six Months Ended |
||||||||||||||
June 30, |
June 30, |
||||||||||||||
2013 |
2012 |
2013 |
2012 |
||||||||||||
Revenues: |
|||||||||||||||
Homebuilding |
|||||||||||||||
Home sale revenues |
$ |
1,219,675 |
$ |
1,024,405 |
$ |
2,319,427 |
$ |
1,838,191 |
|||||||
Land sale revenues |
20,385 |
8,749 |
46,516 |
47,147 |
|||||||||||
1,240,060 |
1,033,154 |
2,365,943 |
1,885,338 |
||||||||||||
Financial Services |
39,362 |
36,251 |
76,235 |
65,103 |
|||||||||||
Total revenues |
1,279,422 |
1,069,405 |
2,442,178 |
1,950,441 |
|||||||||||
Homebuilding Cost of Revenues: |
|||||||||||||||
Home sale cost of revenues |
990,818 |
869,379 |
1,892,288 |
1,581,545 |
|||||||||||
Land sale cost of revenues |
20,710 |
7,611 |
42,728 |
41,008 |
|||||||||||
1,011,528 |
876,990 |
1,935,016 |
1,622,553 |
||||||||||||
Financial Services expenses |
23,035 |
20,327 |
45,623 |
42,336 |
|||||||||||
Selling, general and administrative expenses |
150,531 |
124,186 |
280,157 |
247,500 |
|||||||||||
Other expense (income), net |
57,339 |
10,498 |
62,111 |
17,117 |
|||||||||||
Interest income |
(1,112) |
(1,164) |
(2,285) |
(2,363) |
|||||||||||
Interest expense |
166 |
198 |
373 |
415 |
|||||||||||
Equity in (earnings) loss of unconsolidated entities |
(395) |
(1,556) |
503 |
(3,552) |
|||||||||||
Income before income taxes |
38,330 |
39,926 |
120,680 |
26,435 |
|||||||||||
Income tax expense (benefit) |
1,913 |
(2,510) |
2,501 |
(4,335) |
|||||||||||
Net income |
$ |
36,417 |
$ |
42,436 |
$ |
118,179 |
$ |
30,770 |
|||||||
Net income per share: |
|||||||||||||||
Basic |
$ |
0.09 |
$ |
0.11 |
$ |
0.31 |
$ |
0.08 |
|||||||
Diluted |
$ |
0.09 |
$ |
0.11 |
$ |
0.30 |
$ |
0.08 |
|||||||
Number of shares used in calculation: |
|||||||||||||||
Basic |
385,389 |
380,655 |
384,813 |
380,579 |
|||||||||||
Effect of dilutive securities |
5,791 |
1,548 |
5,943 |
1,446 |
|||||||||||
Diluted |
391,180 |
382,203 |
390,756 |
382,025 |
PulteGroup, Inc. Condensed Consolidated Balance Sheets ($000's omitted) (Unaudited) |
|||||||
June 30, |
December 31, |
||||||
ASSETS |
|||||||
Cash and equivalents |
$ |
1,212,668 |
$ |
1,404,760 |
|||
Restricted cash |
66,443 |
71,950 |
|||||
House and land inventory |
4,183,069 |
4,214,046 |
|||||
Land held for sale |
89,765 |
91,104 |
|||||
Land, not owned, under option agreements |
33,751 |
31,066 |
|||||
Residential mortgage loans available-for-sale |
237,595 |
318,931 |
|||||
Investments in unconsolidated entities |
44,378 |
45,629 |
|||||
Other assets |
441,904 |
407,675 |
|||||
Intangible assets |
142,698 |
149,248 |
|||||
$ |
6,452,271 |
$ |
6,734,409 |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
Liabilities: |
|||||||
Accounts payable |
$ |
207,750 |
$ |
178,274 |
|||
Customer deposits |
167,076 |
101,183 |
|||||
Accrued and other liabilities |
1,406,656 |
1,418,063 |
|||||
Income tax liabilities |
200,646 |
198,865 |
|||||
Financial Services debt |
59,866 |
138,795 |
|||||
Senior notes |
2,082,062 |
2,509,613 |
|||||
4,124,056 |
4,544,793 |
||||||
Shareholders' equity |
2,328,215 |
2,189,616 |
|||||
$ |
6,452,271 |
$ |
6,734,409 |
PulteGroup, Inc. Consolidated Statements of Cash Flows ($000's omitted) (Unaudited) |
|||||||
Six Months Ended |
|||||||
June 30, |
|||||||
2013 |
2012 |
||||||
Cash flows from operating activities: |
|||||||
Net income |
$ |
118,179 |
$ |
30,770 |
|||
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities: |
|||||||
Write-down of land and deposits and pre-acquisition costs |
4,709 |
9,218 |
|||||
Depreciation and amortization |
15,084 |
14,828 |
|||||
Stock-based compensation expense |
15,765 |
8,886 |
|||||
Equity in (earnings) loss of unconsolidated entities |
503 |
(3,552) |
|||||
Distributions of earnings from unconsolidated entities |
1,298 |
5,782 |
|||||
Loss on debt retirements |
23,072 |
— |
|||||
Other non-cash, net |
4,277 |
850 |
|||||
Increase (decrease) in cash due to: |
|||||||
Restricted cash |
1,285 |
(1,215) |
|||||
Inventories |
32,920 |
72,222 |
|||||
Residential mortgage loans available-for-sale |
81,336 |
23,768 |
|||||
Other assets |
(32,607) |
12,020 |
|||||
Accounts payable, accrued and other liabilities |
67,463 |
28,799 |
|||||
Income tax liabilities |
1,781 |
9,164 |
|||||
Net cash provided by (used in) operating activities |
335,065 |
211,540 |
|||||
Cash flows from investing activities: |
|||||||
Distributions from unconsolidated entities |
200 |
2,696 |
|||||
Investments in unconsolidated entities |
(807) |
(858) |
|||||
Net change in loans held for investment |
18 |
627 |
|||||
Change in restricted cash related to letters of credit |
4,222 |
16,280 |
|||||
Proceeds from the sale of property and equipment |
9 |
4,627 |
|||||
Capital expenditures |
(11,017) |
(6,997) |
|||||
Net cash provided by (used in) investing activities |
(7,375) |
16,375 |
|||||
Cash flows from financing activities: |
|||||||
Financial Services borrowings (repayments) |
(78,929) |
— |
|||||
Other borrowings (repayments) |
(452,950) |
400 |
|||||
Stock option exercises |
18,544 |
— |
|||||
Stock repurchases |
(6,447) |
(908) |
|||||
Net cash provided by (used in) financing activities |
(519,782) |
(508) |
|||||
Net increase (decrease) in cash and equivalents |
(192,092) |
227,407 |
|||||
Cash and equivalents at beginning of period |
1,404,760 |
1,083,071 |
|||||
Cash and equivalents at end of period |
$ |
1,212,668 |
$ |
1,310,478 |
|||
Supplemental Cash Flow Information: |
|||||||
Interest paid (capitalized), net |
$ |
2,309 |
$ |
(5,840) |
|||
Income taxes paid (refunded), net |
$ |
(2,471) |
$ |
(11,756) |
PulteGroup, Inc. Segment Data ($000's omitted) (Unaudited) |
|||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||
June 30, |
June 30, |
||||||||||||||
2013 |
2012 |
2013 |
2012 |
||||||||||||
HOMEBUILDING: |
|||||||||||||||
Home sale revenues |
$ |
1,219,675 |
$ |
1,024,405 |
$ |
2,319,427 |
$ |
1,838,191 |
|||||||
Land sale revenues |
20,385 |
8,749 |
46,516 |
47,147 |
|||||||||||
Total Homebuilding revenues |
1,240,060 |
1,033,154 |
2,365,943 |
1,885,338 |
|||||||||||
Home sale cost of revenues |
990,818 |
869,379 |
1,892,288 |
1,581,545 |
|||||||||||
Land sale cost of revenues |
20,710 |
7,611 |
42,728 |
41,008 |
|||||||||||
Selling, general, and administrative expenses |
150,531 |
124,186 |
280,157 |
247,500 |
|||||||||||
Equity in (earnings) loss of unconsolidated entities |
(363) |
(1,493) |
563 |
(3,471) |
|||||||||||
Other expense (income), net |
57,339 |
10,498 |
62,111 |
17,117 |
|||||||||||
Interest income, net |
(946) |
(966) |
(1,912) |
(1,948) |
|||||||||||
Income before income taxes |
$ |
21,971 |
$ |
23,939 |
$ |
90,008 |
$ |
3,587 |
|||||||
FINANCIAL SERVICES: |
|||||||||||||||
Income before income taxes |
$ |
16,359 |
$ |
15,987 |
$ |
30,672 |
$ |
22,848 |
|||||||
CONSOLIDATED: |
|||||||||||||||
Income before income taxes |
$ |
38,330 |
$ |
39,926 |
$ |
120,680 |
$ |
26,435 |
PulteGroup, Inc. Segment data, continued ($000's omitted) (Unaudited) |
|||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||
June 30, |
June 30, |
||||||||||||||
2013 |
2012 |
2013 |
2012 |
||||||||||||
Home sale revenues |
$ |
1,219,675 |
$ |
1,024,405 |
$ |
2,319,427 |
$ |
1,838,191 |
|||||||
Closings - units |
|||||||||||||||
Northeast |
378 |
416 |
680 |
768 |
|||||||||||
Southeast |
735 |
673 |
1,386 |
1,208 |
|||||||||||
Florida |
649 |
569 |
1,232 |
1,045 |
|||||||||||
Texas |
960 |
862 |
1,857 |
1,561 |
|||||||||||
North |
741 |
663 |
1,407 |
1,194 |
|||||||||||
Southwest |
689 |
633 |
1,423 |
1,157 |
|||||||||||
4,152 |
3,816 |
7,985 |
6,933 |
||||||||||||
Average selling price |
$ |
294 |
$ |
268 |
$ |
290 |
$ |
265 |
|||||||
Net new orders - units |
|||||||||||||||
Northeast |
543 |
614 |
1,114 |
1,167 |
|||||||||||
Southeast |
887 |
823 |
1,846 |
1,597 |
|||||||||||
Florida |
701 |
700 |
1,505 |
1,468 |
|||||||||||
Texas |
988 |
1,125 |
2,068 |
2,234 |
|||||||||||
North |
976 |
1,064 |
1,945 |
1,933 |
|||||||||||
Southwest |
790 |
1,252 |
1,607 |
2,170 |
|||||||||||
4,885 |
5,578 |
10,085 |
10,569 |
||||||||||||
Net new orders - dollars (a) |
$ |
1,519,656 |
$ |
1,605,073 |
$ |
3,101,621 |
$ |
2,945,050 |
|||||||
Unit backlog |
|||||||||||||||
Northeast |
1,056 |
824 |
|||||||||||||
Southeast |
1,371 |
991 |
|||||||||||||
Florida |
1,338 |
1,081 |
|||||||||||||
Texas |
1,666 |
1,498 |
|||||||||||||
North |
1,805 |
1,448 |
|||||||||||||
Southwest |
1,322 |
1,718 |
|||||||||||||
8,558 |
7,560 |
||||||||||||||
Dollars in backlog |
$ |
2,713,733 |
$ |
2,166,508 |
|||||||||||
(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 |
Six Months Ended |
||||||||||||||
June 30, |
June 30, |
||||||||||||||
2013 |
2012 |
2013 |
2012 |
||||||||||||
MORTGAGE ORIGINATIONS: |
|||||||||||||||
Origination volume |
2,812 |
2,603 |
5,534 |
4,624 |
|||||||||||
Origination principal |
$ |
643,267 |
$ |
566,856 |
$ |
1,265,264 |
$ |
996,321 |
|||||||
Capture rate |
79.8 |
% |
82.2 |
% |
81.0 |
% |
80.5 |
% |
|||||||
Supplemental Data ($000's omitted) (Unaudited) |
|||||||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||||||
June 30, |
June 30, |
||||||||||||||||||
2013 |
2012 |
2013 |
2012 |
||||||||||||||||
Interest in inventory, beginning of period |
$ |
320,859 |
$ |
359,205 |
$ |
331,880 |
$ |
355,068 |
|||||||||||
Interest capitalized |
39,909 |
51,316 |
82,565 |
102,639 |
|||||||||||||||
Interest expensed |
(62,193) |
(52,070) |
(115,870) |
(99,256) |
|||||||||||||||
Interest in inventory, end of period |
$ |
298,575 |
$ |
358,451 |
$ |
298,575 |
$ |
358,451 |
|||||||||||
Interest incurred |
$ |
39,909 |
$ |
51,316 |
$ |
82,565 |
$ |
102,639 |
|||||||||||
This report contains information about our home sale gross margins reflecting certain adjustments. This measure is considered a non-GAAP financial measure under the
The following table sets 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 |
|||||||||||||||||||
June 30, |
March 30, |
December 31, |
September 30, |
June 30, |
|||||||||||||||
Home sale revenues |
$ |
1,219,675 |
$ |
1,099,752 |
$ |
1,481,517 |
$ |
1,232,704 |
$ |
1,024,405 |
|||||||||
Home sale cost of revenues |
990,818 |
901,470 |
1,228,201 |
1,023,704 |
869,379 |
||||||||||||||
Home sale gross margin |
228,857 |
198,282 |
253,316 |
209,000 |
155,026 |
||||||||||||||
Add: |
|||||||||||||||||||
Land and community valuation adjustments (a) |
— |
— |
2,250 |
385 |
633 |
||||||||||||||
Capitalized interest amortization (a) |
62,193 |
53,677 |
67,880 |
57,155 |
52,070 |
||||||||||||||
Adjusted home sale gross margin |
$ |
291,050 |
$ |
251,959 |
$ |
323,446 |
$ |
266,540 |
$ |
207,729 |
|||||||||
Home sale gross margin as a percentage of home sale revenues |
18.8 |
% |
18.0 |
% |
17.1 |
% |
17.0 |
% |
15.1 |
% |
|||||||||
Adjusted home sale gross margin as a percentage of home sale revenues |
23.9 |
% |
22.9 |
% |
21.8 |
% |
21.6 |
% |
20.3 |
% |
(a) Write-offs of capitalized interest related to impairments are reflected in capitalized interest amortization.
SOURCE