UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549


FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of earliest event reported): April 23, 2015


PULTEGROUP, INC.
(Exact name of registrant as specified in its Charter)

Michigan
1-9804
38-2766606
(State or other jurisdiction
(Commission
(IRS Employer
of incorporation)
File Number)
Identification No.)


3350 Peachtree Road NE, Suite 150, Atlanta, Georgia 30326
(Address of principal executive offices) (Zip Code)


Registrant's telephone number, including area code (404) 978-6400


____________________________________________________
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

_     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

_    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

_    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

_    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))









ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On April 23, 2015, PulteGroup, Inc. issued a press release announcing its financial results for its first quarter ended March 31, 2015. A copy of this earnings press release is furnished with this Current Report on Form 8-K and is incorporated in Item 2.02 by reference.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

99.1    First Quarter 2015 earnings press release dated April 23, 2015.

The information in Item 2.02 of this Current Report on Form 8-K, including the earnings press release incorporated in such Item 2.02, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be incorporated by reference in any filing under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

                                
 
 
PULTEGROUP, INC.
 
 
 
 
 
 
 
 
 
 
 
 
Date:
April 23, 2015
 
By:
/s/ Steven M. Cook
 
 
 
 
Name:
Steven M. Cook
 
 
 
 
Title:
Senior Vice President,
 
 
 
 
 
General Counsel
 
 
 
 
 
and Secretary
 
 
 
 
 
 










 


FOR IMMEDIATE RELEASE
Company Contact
 
Investors: Jim Zeumer
 
(404) 978-6434
 
          Email: jim.zeumer@pultegroup.com
 
 

PULTEGROUP, INC. REPORTS FIRST QUARTER 2015 FINANCIAL RESULTS

•
Q1 Net Income of $55 Million, or $0.15 Per Share; Prior Year Net Income of $75 Million, or $0.19 Per Share, Includes a Net Benefit of $0.02 Per Share from Reversal of Mortgage Reserves Partially Offset by Debt Redemption Charges
•
Net New Orders Increased 6% to 5,139 Homes
•
Value of Net New Orders Increased 6% to $1.7 Billion
•
Q1 Community Count of 613, Up 5% Over the Prior Year
•
Average Closing Price Increased 2% to $323,000 Per Home
•
Gross Margin of 22.7% Consistent with Company Guidance
•
Unit Backlog Increased 6% to 7,624 Homes Valued at $2.6 Billion
•
Repurchased $100 Million of Stock in the Quarter

ATLANTA - April 23, 2015 - PulteGroup, Inc. (NYSE: PHM) announced today financial results for its first quarter ended March 31, 2015. For the quarter, the Company reported net income of $55 million, or $0.15 per share. Prior year net income of $75 million, or $0.19 per share, includes a net benefit of $0.02 per share relating to the reversal of mortgage repurchase reserves partially offset by expenses associated with debt redemption charges.

“The improving demand conditions that we noted toward the end of 2014 carried through the first quarter of 2015 and provided a strong start to the spring selling season,” said Richard J. Dugas, Jr., PulteGroup Chairman, President and CEO. “We remain encouraged by overall housing demand which continues along a sustained but slow recovery path supported by an improving job market, favorable demographics, low interest rates and generally low inventory of available homes.”

“Although Q1 earnings were impacted by higher income tax expense, acquisition accounting and construction delays which slowed closings, we generated a 6% increase in unit signups while maintaining high absorption paces and low incentive levels. Given the favorable demand environment and ongoing benefits from our Value Creation initiatives, we are well positioned to deliver another year of excellent operating and financial results,” said Dugas.

Home sale revenues for the first quarter were $1.1 billion, which was comparable with the prior year. Revenues for the quarter reflect a 2% increase in average selling price to $323,000, offset by a 2% decrease in closings to 3,365 homes. The higher average selling price was the result of price increases realized across all three of the Company’s national brands: Centex, Pulte and Del Webb.

Home sale gross margin for the quarter was 22.7% which was in line with Company guidance. Margins for the period reflect the impact of a 30 basis point reduction from acquisition accounting associated with the Company’s 2014 purchase of certain assets from Dominion Homes. Homebuilding SG&A expense for the period was $161 million, or 14.8% of home sale revenues, compared with $145 million, or 13.3% of home sale revenues, in the comparable prior year quarter.

1



For the quarter, net new orders gained 6% over the prior year to 5,139 homes. The dollar value of net new orders also increased 6% over the prior year to $1.7 billion. For the quarter, the Company operated out of 613 communities which is an increase of 5% over last year.

PulteGroup’s backlog at quarter end totaled 7,624 homes valued at $2.6 billion, compared with prior year backlog of 7,199 homes valued at $2.4 billion. The average price in backlog of $336,000 is consistent with backlog as of March 31, 2014, and up 1% over December 31, 2014.

The Company's financial services operations reported pretax income of $5 million for the quarter, compared with pretax income of $22 million in the prior year. First quarter 2014 pretax income included a $19 million benefit relating to the reversal of a portion of the Company’s mortgage repurchase reserves. Mortgage capture rate for the quarter was 82% compared with 78% in the comparable prior year period.

Income tax expense for the period was $41 million, or an effective tax rate of 42.6%, which is higher than Company guidance of 38%. The higher tax rate for the period reflects a charge of $0.02 per share relating to an adjustment to the Company’s deferred tax asset resulting from a change in its prospective effective tax rate. The Company currently estimates that its normalized tax rate for future quarters will remain near its previous guidance of 38%.

The Company ended the quarter with $1.1 billion of cash after investing $484 million in land and repurchasing 4.6 million shares of common stock in the period for $100 million, or an average price of $21.75 per share.

A conference call discussing PulteGroup's first quarter results is scheduled for Thursday, April 23, 2015, at 8:30 a.m. Eastern Time. Interested investors can access the live webcast via PulteGroup's corporate website at www.pultegroupinc.com.

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 PulteGroup operates; the availability and cost of land and other raw materials used by PulteGroup in its homebuilding operations; the impact of any changes to our strategy in responding to the cyclical nature of the industry, including any changes regarding our land positions; the availability and cost of insurance covering risks associated with PulteGroup's businesses; shortages and the cost of labor; weather related slowdowns; slow growth initiatives and/or local building moratoria; governmental regulation directed at or affecting the housing market, the homebuilding industry or construction activities; uncertainty in the mortgage lending industry, including revisions to underwriting standards and repurchase requirements associated with the sale of mortgage loans; the interpretation of or changes to tax, labor and environmental laws; economic changes nationally or in PulteGroup's local markets, including inflation, deflation, changes in consumer confidence and preferences and the state of the market for homes in general; legal or regulatory proceedings or claims; our ability to generate sufficient cash flow in order to successfully implement our capital allocation priorities; required accounting changes; terrorist acts and other acts of war; and other factors of national, regional and global scale, including those of a political, economic, business and

2


competitive nature.  See PulteGroup's Annual Report on Form 10-K for the fiscal year ended December 31, 2014, and other public filings with the Securities and Exchange Commission (the “SEC”) for a further discussion of these and other risks and uncertainties applicable to our businesses.  PulteGroup undertakes no duty to update any forward-looking statement, whether as a result of new information, future events or changes in PulteGroup's expectations.

About PulteGroup

PulteGroup, Inc. (NYSE: PHM), based in Atlanta, GA, is one of America's largest homebuilding companies with operations in approximately 50 markets throughout the country. Through its brand portfolio that includes Centex, Pulte Homes, Del Webb and DiVosta Homes, the Company is one of the industry's most versatile homebuilders able to meet the needs of multiple buyer groups and respond to changing consumer demand. PulteGroup conducts extensive research to provide homebuyers with innovative solutions and consumer inspired homes and communities to make lives better.

For more information about PulteGroup, Inc. and PulteGroup brands, go to www.pultegroupinc.com; www.pulte.com; www.centex.com; www.delwebb.com and www.divosta.com.


# # #





3



PulteGroup, Inc.
Consolidated Results of Operations
($000's omitted, except per share data)
(Unaudited)
 
 
 
 
 
Three Months Ended
 
March 31,
 
2015
 
2014
Revenues:
 
 
 
Homebuilding
 
 
 
Home sale revenues
$
1,088,158

 
$
1,088,015

Land sale revenues
17,542

 
5,984

 
1,105,700

 
1,093,999

Financial Services
27,598

 
24,895

Total revenues
1,133,298

 
1,118,894

 
 
 
 
Homebuilding Cost of Revenues:
 
 
 
Home sale cost of revenues
841,145

 
828,603

Land sale cost of revenues
13,378

 
5,011

 
854,523

 
833,614

Financial Services expenses
22,541

 
3,322

Selling, general and administrative expenses
161,312

 
144,887

Other expense, net
1,136

 
13,831

Interest income
(1,099
)
 
(1,111
)
Interest expense
187

 
213

Equity in earnings of unconsolidated entities
(1,107
)
 
(5,891
)
Income before income taxes
95,805

 
130,029

Income tax expense
40,834

 
55,210

Net income
$
54,971

 
$
74,819

 
 
 
 
Per share:
 
 
 
Basic earnings
$
0.15

 
$
0.19

Diluted earnings
$
0.15

 
$
0.19

Cash dividends declared
$
0.08

 
$
0.05

 
 
 
 
Number of shares used in calculation:
 
 
 
Basic
366,748

 
383,991

Effect of dilutive securities
3,362

 
3,815

Diluted
370,110

 
387,806



4



PulteGroup, Inc.
Condensed Consolidated Balance Sheets
($000's omitted)
(Unaudited)
 
 
 
 
 
March 31,
2015
 
December 31,
2014
 
 
 
 
ASSETS
 
 
 
 
 
 
 
Cash and equivalents
$
1,053,927

 
$
1,292,862

Restricted cash
14,334

 
16,358

House and land inventory
4,633,050

 
4,392,100

Land held for sale
90,529

 
101,190

Land, not owned, under option agreements
62,261

 
30,186

Residential mortgage loans available-for-sale
226,292

 
339,531

Investments in unconsolidated entities
41,474

 
40,368

Other assets
511,665

 
513,032

Intangible assets
119,890

 
123,115

Deferred tax assets, net
1,679,863

 
1,720,668

 
$
8,433,285

 
$
8,569,410

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
 
Liabilities:
 
 
 
Accounts payable
$
271,165

 
$
270,516

Customer deposits
177,763

 
142,642

Accrued and other liabilities
1,307,387

 
1,343,774

Income tax liabilities
47,346

 
48,722

Financial Services debt
67,563

 
140,241

Senior notes
1,820,067

 
1,818,561

 
3,691,291

 
3,764,456

 
 
 
 
Shareholders' equity
4,741,994

 
4,804,954

 
 
 
 
 
$
8,433,285

 
$
8,569,410



5


PulteGroup, Inc.
Consolidated Statements of Cash Flows
($000's omitted)
(Unaudited)
 
Three Months Ended
 
March 31,
 
2015
 
2014
Cash flows from operating activities:
 
 
 
Net income
$
54,971

 
$
74,819

Adjustments to reconcile net income to net cash flows provided by (used in)
      operating activities:
 
 
 
Deferred income tax expense
40,805

 
52,086

Depreciation and amortization
11,062

 
8,942

Stock-based compensation expense
8,280

 
8,522

Equity in earnings of unconsolidated entities
(1,107
)
 
(5,891
)
Distributions of earnings from unconsolidated entities
—

 
4,753

Loss on debt retirements
—

 
8,584

Other non-cash, net
5,917

 
3,256

Increase (decrease) in cash due to:
 
 
 
Restricted cash
(1,686
)
 
(890
)
Inventories
(230,993
)
 
(68,812
)
Residential mortgage loans available-for-sale
119,976

 
76,357

Other assets
(3,830
)
 
13,818

Accounts payable, accrued and other liabilities
(27,416
)
 
(83,943
)
Income tax liabilities
(1,376
)
 
(205
)
Net cash provided by (used in) operating activities
(25,397
)
 
91,396

Cash flows from investing activities:
 
 
 
Distributions from unconsolidated entities
—

 
6,385

Investments in unconsolidated entities
—

 
(9
)
Net change in loans held for investment
917

 
(6,390
)
Change in restricted cash related to letters of credit
3,710

 
(1,991
)
Proceeds from the sale of property and equipment
5

 
23

Capital expenditures
(14,517
)
 
(17,865
)
Net cash provided by (used in) investing activities
(9,885
)
 
(19,847
)
Cash flows from financing activities:
 
 
 
Financial Services borrowings (repayments)
(72,678
)
 
(69,828
)
Other borrowings (repayments)
—

 
(250,013
)
Stock option exercises
6,596

 
5,295

Stock repurchases
(107,955
)
 
(50,105
)
Dividends paid
(29,616
)
 
(19,065
)
Net cash provided by (used in) financing activities
(203,653
)
 
(383,716
)
Net increase (decrease) in cash and equivalents
(238,935
)
 
(312,167
)
Cash and equivalents at beginning of period
1,292,862

 
1,580,329

Cash and equivalents at end of period
$
1,053,927

 
$
1,268,162

 
 
 
 
Supplemental Cash Flow Information:
 
 
 
Interest paid (capitalized), net
$
(21,412
)
 
$
(19,556
)
Income taxes paid (refunded), net
$
(1,997
)
 
$
(8,253
)


6



PulteGroup, Inc.
Segment Data
($000's omitted)
(Unaudited)
 
 
 
 
 
Three Months Ended
 
March 31,
 
2015
 
2014
HOMEBUILDING:
 
 
 
Home sale revenues
$
1,088,158

 
$
1,088,015

Land sale revenues
17,542

 
5,984

Total Homebuilding revenues
1,105,700

 
1,093,999

 
 
 
 
Home sale cost of revenues
841,145

 
828,603

Land sale cost of revenues
13,378

 
5,011

Selling, general and administrative expenses
161,312

 
144,887

Equity in earnings of unconsolidated entities
(1,107
)
 
(5,870
)
Other expense, net
1,136

 
13,831

Interest income, net
(912
)
 
(898
)
Income before income taxes
$
90,748

 
$
108,435

 
 
 
 
FINANCIAL SERVICES:
 
 
 
Income before income taxes
$
5,057

 
$
21,594

 
 
 
 
CONSOLIDATED:
 
 
 
Income before income taxes
$
95,805

 
$
130,029



7


PulteGroup, Inc.
Segment Data, continued
($000's omitted)
(Unaudited)
 
 
 
 
 
Three Months Ended
 
March 31,
 
2015
 
2014
 
 
 
 
Home sale revenues
$
1,088,158

 
$
1,088,015

 
 
 
 
Closings - units
 
 
 
Northeast
248

 
343

Southeast
612

 
647

Florida
601

 
567

Texas
746

 
781

North
735

 
630

Southwest
423

 
468

 
3,365

 
3,436

Average selling price
$
323

 
$
317

 
 
 
 
Net new orders - units
 
 
 
Northeast
437

 
444

Southeast
938

 
824

Florida
911

 
850

Texas
1,117

 
1,172

North
996

 
892

Southwest
740

 
681

 
5,139

 
4,863

Net new orders - dollars (a)
$
1,708,390

 
$
1,608,406

 
 
 
 
Unit backlog
 
 
 
Northeast
650

 
722

Southeast
1,294

 
1,230

Florida
1,312

 
1,196

Texas
1,644

 
1,641

North
1,723

 
1,475

Southwest
1,001

 
935

 
7,624

 
7,199

Dollars in backlog
$
2,564,092

 
$
2,422,187

 
 
 
 

(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.

8


    
PulteGroup, Inc.
Segment Data, continued
($000's omitted)
(Unaudited)
 
 
 
 
 
Three Months Ended
 
March 31,
 
2015
 
2014
MORTGAGE ORIGINATIONS:
 
 
 
Origination volume
2,116

 
2,114

Origination principal
$
514,788

 
$
495,529

Capture rate
81.6
%
 
78.2
%


Supplemental Data
($000's omitted)
(Unaudited)
 
 
 
 
 
Three Months Ended
 
March 31,
 
2015
 
2014
 
 
 
 
Interest in inventory, beginning of period
$
167,638

 
$
230,922

Interest capitalized
30,803

 
35,313

Interest expensed
(31,554
)
 
(40,616
)
Interest in inventory, end of period
$
166,887

 
$
225,619




9
PulteGroup (NYSE:PHM)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more PulteGroup Charts.
PulteGroup (NYSE:PHM)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more PulteGroup Charts.