- Q3 Pretax Income of
$225 Million Increased 29% from the Prior Year - Q3 Earnings of
$0.37 Per Share; Prior Year Earnings of$5.87 Per Share Reflect the Reversal of$2.1 Billion of the Company's Deferred Tax Asset Valuation Allowance - Home Sale Revenues Increased 4% to
$1.6 Billion Driven by an 8% Increase in Average Selling Price to$334,000 - Gross Margin of 22.9%, Which Includes the Impact of Acquisition Accounting Adjustments Associated with its Purchase of the Homebuilding Assets of
Dominion Homes , Increased 200 Basis Points Over 2013 - Q3 Absorption Pace Increased 5% Excluding Impact of Dominion Acquisition
- Q3 Backlog Value Increased 8% to
$2.6 Billion on a Unit Backlog Increase of 5% to 7,934 Homes, Inclusive of Assumed Dominion Backlog - In a Separate Release, the Company Announced a 60% Increase of its Quarterly Dividend to
$0.08 Per Share and Expansion of its Share Repurchase Authorization by$750 Million
"I am extremely pleased with the benefits we continue to realize from our Value Creation strategy and with the resulting balance sheet strength and flexibility we have today," said
"Our view of the U.S. housing market remains positive, as continued improvements in both the economy and employment provide ongoing support to an industry that continues to benefit from low inventory, low mortgage rates and favorable demographic trends. Further, we are encouraged by proposed changes at FHFA which have the potential to improve mortgage availability, particularly for first-time homebuyers. Consistent with our expectation for an ongoing recovery in housing, we have authorized
"Our first priority in allocating capital is to invest responsibly in our business, and then to return excess funds to shareholders in the form of dividends and share repurchases on a routine and systematic basis. Given the strong cash flows we expect to realize in the future, our Board has approved a 60% increase of
Third Quarter Results
On
Home sale revenues for the third quarter increased 4% from the prior year to
For the third quarter, pretax income from homebuilding operations increased 31% to
Net new orders for the third quarter totaled 3,779 homes, which is comparable with the prior year. On a dollar basis, signup value was
The Company's financial services operations reported third quarter pretax income of
During the quarter,
Company Significantly Increases Dividend and Share Repurchase Authorization
In a separate press release issued today,
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, |
||||||||||||||
2014 |
2013 |
2014 |
2013 |
||||||||||||
Revenues: |
|||||||||||||||
Homebuilding |
|||||||||||||||
Home sale revenues |
$ |
1,551,226 |
$ |
1,491,959 |
$ |
3,885,703 |
$ |
3,811,386 |
|||||||
Land sale revenues |
10,047 |
55,783 |
24,558 |
102,299 |
|||||||||||
1,561,273 |
1,547,742 |
3,910,261 |
3,913,685 |
||||||||||||
Financial Services |
33,452 |
34,336 |
89,544 |
110,571 |
|||||||||||
Total revenues |
1,594,725 |
1,582,078 |
3,999,805 |
4,024,256 |
|||||||||||
Homebuilding Cost of Revenues: |
|||||||||||||||
Home sale cost of revenues |
1,195,369 |
1,180,137 |
2,976,665 |
3,072,425 |
|||||||||||
Land sale cost of revenues |
3,539 |
49,933 |
15,382 |
92,661 |
|||||||||||
1,198,908 |
1,230,070 |
2,992,047 |
3,165,086 |
||||||||||||
Financial Services expenses |
22,623 |
23,244 |
48,058 |
68,867 |
|||||||||||
Selling, general and administrative expenses |
147,136 |
138,637 |
521,791 |
418,794 |
|||||||||||
Other expense, net |
2,406 |
17,055 |
25,561 |
79,166 |
|||||||||||
Interest income |
(1,205) |
(1,036) |
(3,431) |
(3,321) |
|||||||||||
Interest expense |
210 |
171 |
625 |
544 |
|||||||||||
Equity in (earnings) loss of unconsolidated entities |
(281) |
(785) |
(7,483) |
(282) |
|||||||||||
Income before income taxes |
224,928 |
174,722 |
422,637 |
295,402 |
|||||||||||
Income tax expense (benefit) |
84,383 |
(2,107,162) |
165,393 |
(2,104,661) |
|||||||||||
Net income |
$ |
140,545 |
$ |
2,281,884 |
$ |
257,244 |
$ |
2,400,063 |
|||||||
Per share: |
|||||||||||||||
Basic earnings |
$ |
0.37 |
$ |
5.92 |
$ |
0.68 |
$ |
6.20 |
|||||||
Diluted earnings |
$ |
0.37 |
$ |
5.87 |
$ |
0.67 |
$ |
6.14 |
|||||||
Cash dividends declared |
$ |
0.05 |
$ |
0.10 |
$ |
0.15 |
$ |
0.10 |
|||||||
Number of shares used in calculation: |
|||||||||||||||
Basic |
373,531 |
382,883 |
376,097 |
384,159 |
|||||||||||
Effect of dilutive securities |
3,761 |
3,220 |
3,723 |
3,745 |
|||||||||||
Diluted |
377,292 |
386,103 |
379,820 |
387,904 |
PulteGroup, Inc. Condensed Consolidated Balance Sheets ($000's omitted) (Unaudited) |
|||||||
September 30, |
December 31, |
||||||
ASSETS |
|||||||
Cash and equivalents |
$ |
1,221,817 |
$ |
1,580,329 |
|||
Restricted cash |
25,003 |
72,715 |
|||||
House and land inventory |
4,431,801 |
3,978,561 |
|||||
Land held for sale |
93,162 |
61,735 |
|||||
Land, not owned, under option agreements |
16,817 |
24,024 |
|||||
Residential mortgage loans available-for-sale |
236,372 |
287,933 |
|||||
Investments in unconsolidated entities |
40,295 |
45,323 |
|||||
Other assets |
500,744 |
460,621 |
|||||
Intangible assets |
126,340 |
136,148 |
|||||
Deferred tax assets, net |
1,922,294 |
2,086,754 |
|||||
$ |
8,614,645 |
$ |
8,734,143 |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
Liabilities: |
|||||||
Accounts payable |
$ |
299,004 |
$ |
202,736 |
|||
Customer deposits |
192,551 |
134,858 |
|||||
Accrued and other liabilities |
1,327,819 |
1,377,750 |
|||||
Income tax liabilities |
196,214 |
206,015 |
|||||
Financial Services debt |
71,594 |
105,664 |
|||||
Senior notes |
1,817,054 |
2,058,168 |
|||||
3,904,236 |
4,085,191 |
||||||
Shareholders' equity |
4,710,409 |
4,648,952 |
|||||
$ |
8,614,645 |
$ |
8,734,143 |
PulteGroup, Inc. Consolidated Statements of Cash Flows ($000's omitted) (Unaudited) |
|||||||
Nine Months Ended |
|||||||
September 30, |
|||||||
2014 |
2013 |
||||||
Cash flows from operating activities: |
|||||||
Net income |
$ |
257,244 |
$ |
2,400,063 |
|||
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities: |
|||||||
Deferred income tax expense |
164,460 |
(2,108,756) |
|||||
Depreciation and amortization |
28,864 |
23,134 |
|||||
Stock-based compensation expense |
21,290 |
21,570 |
|||||
Equity in (earnings) loss of unconsolidated entities |
(7,483) |
(282) |
|||||
Distributions of earnings from unconsolidated entities |
4,824 |
1,693 |
|||||
Loss on debt retirements |
8,584 |
26,930 |
|||||
Other non-cash, net |
8,211 |
12,314 |
|||||
Increase (decrease) in cash due to: |
|||||||
Restricted cash |
(689) |
1,654 |
|||||
Inventories |
(384,571) |
89,040 |
|||||
Residential mortgage loans available-for-sale |
49,600 |
21,967 |
|||||
Other assets |
(12,802) |
(29,989) |
|||||
Accounts payable, accrued and other liabilities |
74,102 |
97,607 |
|||||
Income tax liabilities |
(9,799) |
(1,995) |
|||||
Net cash provided by (used in) operating activities |
201,835 |
554,950 |
|||||
Cash flows from investing activities: |
|||||||
Distributions from unconsolidated entities |
7,624 |
200 |
|||||
Investments in unconsolidated entities |
(9) |
(1,057) |
|||||
Net change in loans held for investment |
(6,338) |
236 |
|||||
Change in restricted cash related to letters of credit |
48,401 |
875 |
|||||
Proceeds from the sale of property and equipment |
83 |
9 |
|||||
Capital expenditures |
(41,888) |
(18,354) |
|||||
Cash used for business acquisitions |
(77,469) |
— |
|||||
Net cash provided by (used in) investing activities |
(69,596) |
(18,091) |
|||||
Cash flows from financing activities: |
|||||||
Financial Services borrowings (repayments) |
(34,070) |
(23,697) |
|||||
Other borrowings (repayments) |
(250,631) |
(477,220) |
|||||
Stock option exercises |
6,034 |
18,549 |
|||||
Stock repurchases |
(155,140) |
(89,940) |
|||||
Dividends paid |
(56,944) |
(19,317) |
|||||
Net cash provided by (used in) financing activities |
(490,751) |
(591,625) |
|||||
Net increase (decrease) in cash and equivalents |
(358,512) |
(54,766) |
|||||
Cash and equivalents at beginning of period |
1,580,329 |
1,404,760 |
|||||
Cash and equivalents at end of period |
$ |
1,221,817 |
$ |
1,349,994 |
|||
Supplemental Cash Flow Information: |
|||||||
Interest paid (capitalized), net |
$ |
(23,236) |
$ |
(18,304) |
|||
Income taxes paid (refunded), net |
$ |
(1,054) |
$ |
(792) |
PulteGroup, Inc. Segment Data ($000's omitted) (Unaudited) |
|||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2014 |
2013 |
2014 |
2013 |
||||||||||||
HOMEBUILDING: |
|||||||||||||||
Home sale revenues |
$ |
1,551,226 |
$ |
1,491,959 |
$ |
3,885,703 |
$ |
3,811,386 |
|||||||
Land sale revenues |
10,047 |
55,783 |
24,558 |
102,299 |
|||||||||||
Total Homebuilding revenues |
1,561,273 |
1,547,742 |
3,910,261 |
3,913,685 |
|||||||||||
Home sale cost of revenues |
1,195,369 |
1,180,137 |
2,976,665 |
3,072,425 |
|||||||||||
Land sale cost of revenues |
3,539 |
49,933 |
15,382 |
92,661 |
|||||||||||
Selling, general and administrative expenses |
147,136 |
138,637 |
521,791 |
418,794 |
|||||||||||
Equity in (earnings) loss of unconsolidated entities |
(233) |
(749) |
(7,391) |
(186) |
|||||||||||
Other expense, net |
2,406 |
17,055 |
25,561 |
79,166 |
|||||||||||
Interest income, net |
(995) |
(865) |
(2,806) |
(2,777) |
|||||||||||
Income before income taxes |
$ |
214,051 |
$ |
163,594 |
$ |
381,059 |
$ |
253,602 |
|||||||
FINANCIAL SERVICES: |
|||||||||||||||
Income before income taxes |
$ |
10,877 |
$ |
11,128 |
$ |
41,578 |
$ |
41,800 |
|||||||
CONSOLIDATED: |
|||||||||||||||
Income before income taxes |
$ |
224,928 |
$ |
174,722 |
$ |
422,637 |
$ |
295,402 |
PulteGroup, Inc. Segment Data, continued ($000's omitted) (Unaudited) |
|||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||
September 30, |
September 30, |
||||||||||||||||||||||||
2014 |
2013 |
2014 |
2013 |
||||||||||||||||||||||
Home sale revenues |
$ |
1,551,226 |
$ |
1,491,959 |
$ |
3,885,703 |
$ |
3,811,386 |
|||||||||||||||||
Closings - units |
|||||||||||||||||||||||||
Northeast |
383 |
532 |
1,072 |
1,212 |
|||||||||||||||||||||
Southeast |
833 |
823 |
2,265 |
2,209 |
|||||||||||||||||||||
Florida |
754 |
760 |
1,944 |
1,992 |
|||||||||||||||||||||
Texas |
963 |
976 |
2,629 |
2,833 |
|||||||||||||||||||||
North |
1,098 |
926 |
2,406 |
2,333 |
|||||||||||||||||||||
Southwest |
615 |
800 |
1,564 |
2,223 |
|||||||||||||||||||||
4,646 |
4,817 |
11,880 |
12,802 |
||||||||||||||||||||||
Average selling price |
$ |
334 |
$ |
310 |
$ |
327 |
$ |
298 |
|||||||||||||||||
Net new orders - units |
|||||||||||||||||||||||||
Northeast |
336 |
405 |
1,160 |
1,519 |
|||||||||||||||||||||
Southeast |
756 |
714 |
2,460 |
2,560 |
|||||||||||||||||||||
Florida |
650 |
589 |
2,274 |
2,094 |
|||||||||||||||||||||
Texas |
735 |
813 |
3,046 |
2,881 |
|||||||||||||||||||||
North |
778 |
720 |
2,658 |
2,665 |
|||||||||||||||||||||
Southwest |
524 |
540 |
1,822 |
2,147 |
|||||||||||||||||||||
3,779 |
3,781 |
13,420 |
13,866 |
||||||||||||||||||||||
Net new orders - dollars (a) |
$ |
1,251,081 |
$ |
1,210,976 |
$ |
4,453,895 |
$ |
4,312,597 |
|||||||||||||||||
Unit backlog |
|||||||||||||||||||||||||
Northeast |
709 |
929 |
|||||||||||||||||||||||
Southeast |
1,248 |
1,262 |
|||||||||||||||||||||||
Florida |
1,243 |
1,167 |
|||||||||||||||||||||||
Texas |
1,667 |
1,503 |
|||||||||||||||||||||||
North |
2,087 |
1,599 |
|||||||||||||||||||||||
Southwest |
980 |
1,062 |
|||||||||||||||||||||||
7,934 |
7,522 |
||||||||||||||||||||||||
Dollars in backlog |
$ |
2,615,288 |
$ |
2,432,747 |
|||||||||||||||||||||
(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, |
||||||||||||||
2014 |
2013 |
2014 |
2013 |
||||||||||||
MORTGAGE ORIGINATIONS: |
|||||||||||||||
Origination volume |
2,899 |
3,126 |
7,482 |
8,660 |
|||||||||||
Origination principal |
$ |
724,025 |
$ |
733,433 |
$ |
1,816,827 |
$ |
1,998,697 |
|||||||
Capture rate |
80.3 |
% |
79.5 |
% |
79.7 |
% |
80.5 |
% |
|||||||
Supplemental Data ($000's omitted) (Unaudited) |
|||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2014 |
2013 |
2014 |
2013 |
||||||||||||
Interest in inventory, beginning of period |
$ |
210,603 |
$ |
298,575 |
$ |
230,922 |
$ |
331,880 |
|||||||
Interest capitalized |
32,025 |
35,962 |
98,793 |
118,527 |
|||||||||||
Interest expensed |
(52,286) |
(68,013) |
(139,373) |
(183,883) |
|||||||||||
Interest in inventory, end of period |
$ |
190,342 |
$ |
266,524 |
$ |
190,342 |
$ |
266,524 |
|||||||
Interest incurred |
$ |
32,025 |
$ |
35,962 |
$ |
98,793 |
$ |
118,527 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/pultegroup-reports-third-quarter-2014-financial-results-886877492.html
SOURCE