"We are extremely pleased with the progress
"The quarter also showed a continuation of the stronger housing demand we have been experiencing since the start of 2012, as
"In past cycles, the U.S. housing industry proved to be a powerful engine that could help drive the economy forward and accelerate the pace of a recovery. A similar scenario could again be unfolding, as the industry is responding to increased sales by hiring additional workers and purchasing more building materials. While we are mindful of any potential impact from global or domestic economic issues, we are optimistic that the combination of ever higher rental rates, record low interest rates and limited housing supply can continue to support the improved housing demand. Within this environment, we continue to invest in the business appropriately, including having recently increased our approved 2012 land spend by
Third Quarter Results
Revenue from home sales in the third quarter increased 12% from the prior year to
For the quarter, the Company's homebuilding operations generated pretax income of
Net new orders for the third quarter totaled 4,544 homes valued at
The Company's financial services operations reported third quarter pretax income of
Company Announces Tender for Up to
As detailed in a separate press release issued
"Our liquidity reflects the Company's improving operating performance, more stringent capital investment policies, and ongoing sales of non-core assets. This tender will allow us to reduce
The terms and conditions of the tender offer are described in the Offer to Purchase, dated
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 |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2012 |
2011 |
2012 |
2011 |
||||||||||||
Revenues: |
|||||||||||||||
Homebuilding |
|||||||||||||||
Home sale revenues |
$ |
1,232,704 |
$ |
1,101,368 |
$ |
3,070,895 |
$ |
2,783,602 |
|||||||
Land sale revenues |
22,623 |
12,659 |
69,770 |
19,023 |
|||||||||||
1,255,327 |
1,114,027 |
3,140,665 |
2,802,625 |
||||||||||||
Financial Services |
47,264 |
27,904 |
112,367 |
71,720 |
|||||||||||
Total revenues |
1,302,591 |
1,141,931 |
3,253,032 |
2,874,345 |
|||||||||||
Homebuilding Cost of Revenues: |
|||||||||||||||
Home sale cost of revenues |
1,023,704 |
947,817 |
2,605,249 |
2,422,525 |
|||||||||||
Land sale cost of revenues |
21,061 |
(2,935) |
62,069 |
1,782 |
|||||||||||
1,044,765 |
944,882 |
2,667,318 |
2,424,307 |
||||||||||||
Financial Services expenses |
20,578 |
19,306 |
62,914 |
78,832 |
|||||||||||
Selling, general, and administrative expenses |
125,191 |
121,553 |
372,691 |
402,379 |
|||||||||||
Other expense (income), net |
7,453 |
259,187 |
24,570 |
274,765 |
|||||||||||
Interest income |
(1,219) |
(1,122) |
(3,582) |
(3,704) |
|||||||||||
Interest expense |
201 |
322 |
616 |
990 |
|||||||||||
Equity in (earnings) loss of unconsolidated entities |
(284) |
303 |
(3,836) |
(1,999) |
|||||||||||
Income (loss) before income taxes |
105,906 |
(202,500) |
132,341 |
(301,225) |
|||||||||||
Income tax expense (benefit) |
(10,727) |
(73,202) |
(15,062) |
(77,016) |
|||||||||||
Net income (loss) |
$ |
116,633 |
$ |
(129,298) |
$ |
147,403 |
$ |
(224,209) |
|||||||
Net income (loss) per share: |
|||||||||||||||
Basic |
$ |
0.31 |
$ |
(0.34) |
$ |
0.39 |
$ |
(0.59) |
|||||||
Diluted |
$ |
0.30 |
$ |
(0.34) |
$ |
0.38 |
$ |
(0.59) |
|||||||
Number of shares used in calculation: |
|||||||||||||||
Basic |
381,355 |
380,025 |
380,839 |
379,785 |
|||||||||||
Effect of dilutive securities |
3,215 |
— |
2,036 |
— |
|||||||||||
Diluted |
384,570 |
380,025 |
382,875 |
379,785 |
PulteGroup, Inc. Condensed Consolidated Balance Sheets ($000's omitted) (Unaudited) |
|||||||
September 30, |
December 31, |
||||||
ASSETS |
|||||||
Cash and equivalents |
$ |
1,563,651 |
$ |
1,083,071 |
|||
Restricted cash |
76,730 |
101,860 |
|||||
House and land inventory |
4,470,571 |
4,636,468 |
|||||
Land held for sale |
129,523 |
135,307 |
|||||
Land, not owned, under option agreements |
11,054 |
24,905 |
|||||
Residential mortgage loans available-for-sale |
263,378 |
258,075 |
|||||
Investments in unconsolidated entities |
30,794 |
35,988 |
|||||
Income taxes receivable |
28,282 |
27,154 |
|||||
Other assets |
414,074 |
420,444 |
|||||
Intangible assets, net |
152,523 |
162,348 |
|||||
$ |
7,140,580 |
$ |
6,885,620 |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
Liabilities: |
|||||||
Accounts payable |
$ |
210,332 |
$ |
196,447 |
|||
Customer deposits |
122,144 |
46,960 |
|||||
Accrued and other liabilities |
1,380,941 |
1,411,941 |
|||||
Income tax liabilities |
202,280 |
203,313 |
|||||
Financial Services debt |
103,000 |
— |
|||||
Senior notes |
2,999,837 |
3,088,344 |
|||||
Total liabilities |
5,018,534 |
4,947,005 |
|||||
Shareholders' equity |
2,122,046 |
1,938,615 |
|||||
$ |
7,140,580 |
$ |
6,885,620 |
PulteGroup, Inc. Consolidating Statements of Cash Flows ($000's omitted) (Unaudited) |
|||||||
Nine Months Ended |
|||||||
September 30, |
|||||||
2012 |
2011 |
||||||
Cash flows from operating activities: |
|||||||
Net income (loss) |
$ |
147,403 |
$ |
(224,209) |
|||
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities: |
|||||||
Write-down of land and deposits and pre-acquisition costs |
12,623 |
11,419 |
|||||
Goodwill impairments |
— |
240,541 |
|||||
Depreciation and amortization |
22,278 |
24,629 |
|||||
Stock-based compensation expense |
14,368 |
14,444 |
|||||
Equity in (earnings) loss of unconsolidated entities |
(3,836) |
(1,999) |
|||||
Distributions of earnings from unconsolidated entities |
7,223 |
5,042 |
|||||
Loss on debt repurchases |
— |
3,537 |
|||||
Other, net |
5,254 |
2,741 |
|||||
Increase (decrease) in cash due to: |
|||||||
Restricted cash |
(966) |
690 |
|||||
Inventories |
160,973 |
(174,231) |
|||||
Residential mortgage loans available-for-sale |
(5,275) |
2,182 |
|||||
Other assets |
(1,612) |
108,202 |
|||||
Accounts payable, accrued and other liabilities |
63,832 |
(99,674) |
|||||
Income tax liabilities |
(1,033) |
(73,280) |
|||||
Net cash provided by (used in) operating activities |
421,232 |
(159,966) |
|||||
Cash flows from investing activities: |
|||||||
Distributions from unconsolidated entities |
2,696 |
4,388 |
|||||
Investments in unconsolidated entities |
(1,266) |
(3,749) |
|||||
Net change in loans held for investment |
736 |
449 |
|||||
Change in restricted cash related to letters of credit |
26,096 |
(89,385) |
|||||
Proceeds from the sale of fixed assets |
4,705 |
9,449 |
|||||
Capital expenditures |
(10,597) |
(15,162) |
|||||
Net cash provided by (used in) investing activities |
22,370 |
(94,010) |
|||||
Cash flows from financing activities: |
|||||||
Financial Services borrowings (repayments) |
103,000 |
— |
|||||
Other borrowings (repayments) |
(92,493) |
(68,351) |
|||||
Issuance of common stock |
27,432 |
— |
|||||
Stock repurchases |
(961) |
(2,021) |
|||||
Net cash provided by (used in) financing activities |
36,978 |
(70,372) |
|||||
Net increase (decrease) in cash and equivalents |
480,580 |
(324,348) |
|||||
Cash and equivalents at beginning of period |
1,083,071 |
1,483,390 |
|||||
Cash and equivalents at end of period |
$ |
1,563,651 |
$ |
1,159,042 |
|||
Supplemental Cash Flow Information: |
|||||||
Interest paid (capitalized), net |
$ |
(28,072) |
$ |
(29,457) |
|||
Income taxes paid (refunded), net |
$ |
(12,901) |
$ |
(5,665) |
PulteGroup, Inc. Segment Data ($000's omitted) (Unaudited) |
|||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2012 |
2011 |
2012 |
2011 |
||||||||||||
HOMEBUILDING: |
|||||||||||||||
Home sale revenues |
$ |
1,232,704 |
$ |
1,101,368 |
$ |
3,070,895 |
$ |
2,783,602 |
|||||||
Land sale revenues |
22,623 |
12,659 |
69,770 |
19,023 |
|||||||||||
Total Homebuilding revenues |
1,255,327 |
1,114,027 |
3,140,665 |
2,802,625 |
|||||||||||
Home sale cost of revenues |
1,023,704 |
947,817 |
2,605,249 |
2,422,525 |
|||||||||||
Land sale cost of revenues |
21,061 |
(2,935) |
62,069 |
1,782 |
|||||||||||
Selling, general, and administrative expenses |
125,191 |
121,553 |
372,691 |
402,379 |
|||||||||||
Equity in (earnings) loss of unconsolidated entities |
(243) |
331 |
(3,714) |
(1,931) |
|||||||||||
Other expense (income), net |
7,453 |
259,187 |
24,570 |
274,765 |
|||||||||||
Interest income, net |
(1,018) |
(800) |
(2,966) |
(2,714) |
|||||||||||
Income (loss) before income taxes |
$ |
79,179 |
$ |
(211,126) |
$ |
82,766 |
$ |
(294,181) |
|||||||
FINANCIAL SERVICES: |
|||||||||||||||
Income (loss) before income taxes |
$ |
26,727 |
$ |
8,626 |
$ |
49,575 |
$ |
(7,044) |
|||||||
CONSOLIDATED: |
|||||||||||||||
Income (loss) before income taxes |
$ |
105,906 |
$ |
(202,500) |
$ |
132,341 |
$ |
(301,225) |
PulteGroup, Inc. Segment data, continued ($000's omitted) (Unaudited) |
|||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2012 |
2011 |
2012 |
2011 |
||||||||||||
Home sale revenues |
$ |
1,232,704 |
$ |
1,101,368 |
$ |
3,070,895 |
$ |
2,783,602 |
|||||||
Closings - units |
|||||||||||||||
Northeast |
456 |
515 |
1,224 |
1,231 |
|||||||||||
Southeast |
776 |
744 |
1,984 |
2,032 |
|||||||||||
Florida |
588 |
621 |
1,633 |
1,655 |
|||||||||||
Texas |
923 |
963 |
2,484 |
2,505 |
|||||||||||
North |
863 |
721 |
2,057 |
1,837 |
|||||||||||
Southwest |
812 |
634 |
1,969 |
1,712 |
|||||||||||
4,418 |
4,198 |
11,351 |
10,972 |
||||||||||||
Average selling price |
$ |
279 |
$ |
262 |
$ |
271 |
$ |
254 |
|||||||
Net new orders - units |
|||||||||||||||
Northeast |
432 |
390 |
1,599 |
1,378 |
|||||||||||
Southeast |
787 |
625 |
2,384 |
2,108 |
|||||||||||
Florida |
679 |
479 |
2,147 |
1,844 |
|||||||||||
Texas |
978 |
775 |
3,212 |
2,681 |
|||||||||||
North |
939 |
633 |
2,872 |
2,049 |
|||||||||||
Southwest |
729 |
662 |
2,899 |
2,071 |
|||||||||||
4,544 |
3,564 |
15,113 |
12,131 |
||||||||||||
Net new orders - dollars (a) |
$ |
1,312,490 |
$ |
916,552 |
$ |
4,257,541 |
$ |
3,125,675 |
|||||||
September 30, |
|||||||||||||||
2012 |
2011 |
||||||||||||||
Unit backlog |
|||||||||||||||
Northeast |
800 |
703 |
|||||||||||||
Southeast |
1,002 |
807 |
|||||||||||||
Florida |
1,172 |
784 |
|||||||||||||
Texas |
1,553 |
1,050 |
|||||||||||||
North |
1,524 |
865 |
|||||||||||||
Southwest |
1,635 |
934 |
|||||||||||||
7,686 |
5,143 |
||||||||||||||
Dollars in backlog |
$ |
2,246,296 |
$ |
1,398,636 |
|||||||||||
(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 |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2012 |
2011 |
2012 |
2011 |
||||||||||||
MORTGAGE ORIGINATIONS: |
|||||||||||||||
Origination volume |
3,073 |
2,585 |
7,697 |
6,667 |
|||||||||||
Origination principal |
$ |
685,001 |
$ |
549,859 |
$ |
1,681,321 |
$ |
1,363,752 |
|||||||
Capture rate |
82.6 |
% |
78.1 |
% |
81.3 |
% |
77.1 |
% |
|||||||
Supplemental Data ($000's omitted) (Unaudited) |
|||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2012 |
2011 |
2012 |
2011 |
||||||||||||
Interest in inventory, beginning of period |
$ |
358,451 |
$ |
358,806 |
$ |
355,068 |
$ |
323,379 |
|||||||
Interest capitalized |
50,730 |
55,230 |
153,369 |
167,367 |
|||||||||||
Interest expensed |
(57,155) |
(48,693) |
(156,411) |
(125,403) |
|||||||||||
Interest in inventory, end of period |
$ |
352,026 |
$ |
365,343 |
$ |
352,026 |
$ |
365,343 |
|||||||
Interest incurred |
$ |
50,730 |
$ |
55,230 |
$ |
153,369 |
$ |
167,367 |
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
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 |
|||||||||||||||||||
September 30, |
June 30, |
March 30, 2012 |
December 31, 2011 |
September 30, |
|||||||||||||||
Home sale revenues |
$ |
1,232,704 |
$ |
1,024,405 |
$ |
813,786 |
$ |
1,167,141 |
$ |
1,101,368 |
|||||||||
Home sale cost of revenues |
1,023,704 |
869,379 |
712,166 |
1,021,873 |
947,817 |
||||||||||||||
Home sale gross margin |
209,000 |
155,026 |
101,620 |
145,268 |
153,551 |
||||||||||||||
Add: |
|||||||||||||||||||
Impairments (a) |
385 |
633 |
3,700 |
7,885 |
526 |
||||||||||||||
Capitalized interest amortization (a) |
57,155 |
52,070 |
47,186 |
63,979 |
48,693 |
||||||||||||||
Adjusted home sale gross margin |
$ |
266,540 |
$ |
207,729 |
$ |
152,506 |
$ |
217,132 |
$ |
202,770 |
|||||||||
Home sale gross margin as a percentage of home sale revenues |
17.0 |
% |
15.1 |
% |
12.5 |
% |
12.4 |
% |
13.9 |
% |
|||||||||
Adjusted home sale gross margin as a percentage of home sale revenues |
21.6 |
% |
20.3 |
% |
18.7 |
% |
18.6 |
% |
18.4 |
% |
|||||||||
(a) Write-offs of capitalized interest related to impairments are reflected in capitalized interest amortization. |
SOURCE
Investors: Jim Zeumer, +1-248-433-4502, jim.zeumer@pultegroup.com