ATLANTA, Jan. 28, 2016 /PRNewswire/ -- PulteGroup, Inc.
(NYSE: PHM) announced today financial results for its fourth
quarter ended December 31,
2015. For the quarter, PulteGroup reported net income of
$228 million, or $0.64 per share, inclusive of $0.07 per share of benefit associated with the
reversal of certain mortgage and construction related insurance
reserves. Prior year net income of $217 million, or $0.58 per share, included $0.16 per share
of income tax and insurance benefits.
"PulteGroup's fourth quarter results reflect improved
performance from our homebuilding operations and, more broadly, the
favorable demand environment we continue to experience within the
housing industry," said Richard J. Dugas,
Jr., Chairman, President and CEO of PulteGroup. "We
realized a significant increase in fourth quarter operating
performance driven by gains in order rates, closings, pricing and
margins, while the 26% increase in our backlog value to
$2.5 billion provides excellent
momentum for strong earnings growth in 2016.
"While heightened global economic concerns have created greater
market volatility, the positive trends in jobs, demographics and
household formations, along with low interest rates and limited
housing inventory, support expectations that housing demand
continues to move higher at a measured pace for a number of
years. Given the investments we are making into our business,
including our recently completed John
Wieland asset purchase, PulteGroup is well positioned to
grow its revenues and earnings, while continuing to generate high
returns on invested capital and consistently return funds to
shareholders."
Fourth Quarter Results
Home sale revenues for the fourth quarter totaled $2.0 billion, an increase of 12% over the prior
year. The increase in revenues was driven by a 7% increase in
closings to 5,662 homes combined with a 6% increase in average
selling price to $353,000. The
higher average selling price in the quarter reflects an ongoing
shift in the mix of homes closed toward the Company's Pulte Homes
brand, as well as price increases realized across all three of the
Company's national brands: Centex, Pulte Homes and Del Webb.
Home sale gross margin for the period was 23.5%, an increase of
40 basis points from the prior year. SG&A expense for the
quarter of $139 million, or 7.0% of
home sale revenues, includes the benefit of a $30 million reversal of construction related
insurance reserves recorded in the period. SG&A for the
prior year period of $146 million, or
8.2% of home sale revenues, included the benefit of a $15 million reversal of construction related
insurance reserves.
For the quarter, the Company reported 3,659 net new orders, an
increase of 13% from prior year orders of 3,232 homes. The
dollar value of fourth quarter orders increased 24% over the prior
year to $1.4 billion. The
Company ended the year with 620 active communities, which is up 4%
from the comparable prior year period.
PulteGroup's backlog of 6,731 homes, valued at $2.5 billion, is its highest year-end backlog
since 2007, and is up from prior year backlog of 5,850 homes,
valued at $1.9 billion.
Reflecting the continued mix shift toward the Company's higher
priced Pulte Homes brand, average selling price in backlog
increased 10% over the prior year to $365,000.
The Company's financial services operations reported pretax
income of $29 million benefitted from
the reversal of $12 million in
mortgage repurchase reserves in the quarter. Prior year
pretax income for financial services totaled $13 million. Mortgage capture rate for the
fourth quarter was 83% compared with 81% in the prior year.
The Company ended the year with a cash balance of $775 million and a debt-to-capitalization ratio
of 30%. Given trading limitations resulting from work to
close its previously disclosed term loan and to acquire certain
assets of John Wieland Homes and
Neighborhoods, the Company did not repurchase any shares of common
stock during the quarter.
A conference call discussing PulteGroup's fourth quarter results
will be held Thursday, January 28,
2016, at 8:30 a.m. Eastern
Time, and webcast live via www.pultegroupinc.com.
Interested investors can access the call via the Company's home
page at www.pultegroupinc.com, and are encouraged to download the
available slides that provide additional details on the Company's
fourth quarter results.
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
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, Georgia, 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, DiVosta Homes and John Wieland
Homes and Neighborhoods, 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; www.divosta.com and www.jwhomes.com.
PulteGroup,
Inc.
Consolidated
Results of Operations
($000's omitted,
except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues:
|
|
|
|
|
|
|
|
Homebuilding
|
|
|
|
|
|
|
|
Home
sale revenues
|
$
|
1,997,309
|
|
|
$
|
1,776,469
|
|
|
$
|
5,792,675
|
|
|
$
|
5,662,171
|
|
Land
sale revenues
|
20,885
|
|
|
9,995
|
|
|
48,536
|
|
|
34,554
|
|
|
2,018,194
|
|
|
1,786,464
|
|
|
5,841,211
|
|
|
5,696,725
|
|
Financial
Services
|
43,434
|
|
|
36,093
|
|
|
140,753
|
|
|
125,638
|
|
Total
revenues
|
2,061,628
|
|
|
1,822,557
|
|
|
5,981,964
|
|
|
5,822,363
|
|
|
|
|
|
|
|
|
|
Homebuilding Cost
of Revenues:
|
|
|
|
|
|
|
|
Home sale cost of
revenues
|
1,527,594
|
|
|
1,366,584
|
|
|
4,440,893
|
|
|
4,343,249
|
|
Land sale cost of
revenues
|
13,867
|
|
|
8,367
|
|
|
35,858
|
|
|
23,748
|
|
|
1,541,461
|
|
|
1,374,951
|
|
|
4,476,751
|
|
|
4,366,997
|
|
|
|
|
|
|
|
|
|
Financial Services
expenses
|
14,138
|
|
|
23,091
|
|
|
82,047
|
|
|
71,057
|
|
Selling, general, and
administrative expenses
|
138,990
|
|
|
146,024
|
|
|
589,780
|
|
|
667,815
|
|
Other expense,
net
|
(6,276)
|
|
|
11,371
|
|
|
17,363
|
|
|
26,736
|
|
Income before income
taxes
|
373,315
|
|
|
267,120
|
|
|
816,023
|
|
|
689,758
|
|
Income tax
expense
|
145,288
|
|
|
50,025
|
|
|
321,933
|
|
|
215,420
|
|
Net income
|
$
|
228,027
|
|
|
$
|
217,095
|
|
|
$
|
494,090
|
|
|
$
|
474,338
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.65
|
|
|
$
|
0.58
|
|
|
$
|
1.38
|
|
|
$
|
1.27
|
|
Diluted
|
$
|
0.64
|
|
|
$
|
0.58
|
|
|
$
|
1.36
|
|
|
$
|
1.26
|
|
Cash dividends
declared
|
$
|
0.09
|
|
|
$
|
0.08
|
|
|
$
|
0.33
|
|
|
$
|
0.23
|
|
|
|
|
|
|
|
|
|
Number of shares
used in calculation:
|
|
|
|
|
|
|
|
Basic
|
348,699
|
|
|
369,533
|
|
|
356,576
|
|
|
370,377
|
|
Effect of dilutive
securities
|
3,047
|
|
|
3,734
|
|
|
3,217
|
|
|
3,725
|
|
Diluted
|
351,746
|
|
|
373,267
|
|
|
359,793
|
|
|
374,102
|
|
PulteGroup,
Inc.
Condensed
Consolidated Balance Sheets
($000's
omitted)
(Unaudited)
|
|
|
|
|
|
December 31,
2015
|
|
December 31,
2014
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Cash and
equivalents
|
$
|
754,161
|
|
|
$
|
1,292,862
|
|
Restricted
cash
|
21,274
|
|
|
16,358
|
|
House and land
inventory
|
5,450,058
|
|
|
4,392,100
|
|
Land held for
sale
|
81,492
|
|
|
101,190
|
|
Residential mortgage
loans available-for-sale
|
442,715
|
|
|
339,531
|
|
Investments in
unconsolidated entities
|
41,267
|
|
|
40,368
|
|
Other
assets
|
671,099
|
|
|
543,218
|
|
Intangible
assets
|
110,215
|
|
|
123,115
|
|
Deferred tax assets,
net
|
1,394,879
|
|
|
1,720,668
|
|
|
$
|
8,967,160
|
|
|
$
|
8,569,410
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
Accounts
payable
|
$
|
327,725
|
|
|
$
|
270,516
|
|
Customer
deposits
|
186,141
|
|
|
142,642
|
|
Accrued and other
liabilities
|
1,284,273
|
|
|
1,343,774
|
|
Income tax
liabilities
|
57,050
|
|
|
48,722
|
|
Financial Services
debt
|
267,877
|
|
|
140,241
|
|
Term loan
|
500,000
|
|
|
—
|
|
Senior
notes
|
1,584,769
|
|
|
1,818,561
|
|
Total
liabilities
|
4,207,835
|
|
|
3,764,456
|
|
|
|
|
|
Shareholders'
equity
|
4,759,325
|
|
|
4,804,954
|
|
|
|
|
|
|
$
|
8,967,160
|
|
|
$
|
8,569,410
|
|
PulteGroup,
Inc.
Consolidated
Statements of Cash Flows
($000's
omitted)
(Unaudited)
|
|
Year
Ended
|
|
December
31,
|
|
2015
|
|
2014
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
494,090
|
|
|
$
|
474,338
|
|
Adjustments to
reconcile net income to net cash flows provided by (used
in)
operating
activities:
|
|
|
|
Deferred income tax
expense
|
311,699
|
|
|
223,769
|
|
Write-down of land
and deposits and pre-acquisition costs
|
11,467
|
|
|
11,168
|
|
Depreciation and
amortization
|
46,222
|
|
|
39,864
|
|
Share-based
compensation expense
|
24,752
|
|
|
29,292
|
|
Loss on debt
retirements
|
—
|
|
|
8,584
|
|
Other, net
|
5,605
|
|
|
6,091
|
|
Increase (decrease)
in cash due to:
|
|
|
|
Restricted
cash
|
(8,626)
|
|
|
1,368
|
|
Inventories
|
(927,768)
|
|
|
(346,596)
|
|
Residential mortgage
loans available-for-sale
|
(104,609)
|
|
|
(53,734)
|
|
Other
assets
|
(177,063)
|
|
|
(46,249)
|
|
Accounts payable,
accrued and other liabilities
|
(23,898)
|
|
|
(38,646)
|
|
Net cash provided by
(used in) operating activities
|
(348,129)
|
|
|
309,249
|
|
Cash flows from
investing activities:
|
|
|
|
Net change in loans
held for investment
|
8,664
|
|
|
335
|
|
Change in restricted
cash related to letters of credit
|
3,710
|
|
|
54,989
|
|
Capital
expenditures
|
(45,440)
|
|
|
(48,790)
|
|
Cash used for
business acquisitions
|
—
|
|
|
(82,419)
|
|
Other investing
activities, net
|
2,212
|
|
|
8,261
|
|
Net cash used in
investing activities
|
(30,854)
|
|
|
(67,624)
|
|
Cash flows from
financing activities:
|
|
|
|
Financial Services
borrowings
|
127,636
|
|
|
34,577
|
|
Proceeds from debt
issuance
|
500,000
|
|
|
—
|
|
Repayments of
debt
|
(239,193)
|
|
|
(250,631)
|
|
Borrowings under
revolving credit facility
|
125,000
|
|
|
—
|
|
Repayments under
revolving credit facility
|
(125,000)
|
|
|
—
|
|
Stock option
exercises
|
10,535
|
|
|
15,627
|
|
Share
repurchases
|
(442,738)
|
|
|
(253,019)
|
|
Dividends
paid
|
(115,958)
|
|
|
(75,646)
|
|
Net cash used in
financing activities
|
(159,718)
|
|
|
(529,092)
|
|
Net decrease in cash
and equivalents
|
(538,701)
|
|
|
(287,467)
|
|
Cash and equivalents
at beginning of period
|
1,292,862
|
|
|
1,580,329
|
|
Cash and equivalents
at end of period
|
$
|
754,161
|
|
|
$
|
1,292,862
|
|
|
|
|
|
Supplemental Cash
Flow Information:
|
|
|
|
Interest capitalized,
net
|
$
|
(4,193)
|
|
|
$
|
(4,561)
|
|
Income taxes paid
(refunded), net
|
$
|
(5,654)
|
|
|
$
|
1,030
|
|
PulteGroup,
Inc.
Segment
Data
($000's
omitted)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
HOMEBUILDING:
|
|
|
|
|
|
|
|
Home sale
revenues
|
$
|
1,997,309
|
|
|
$
|
1,776,469
|
|
|
$
|
5,792,675
|
|
|
$
|
5,662,171
|
|
Land sale
revenues
|
20,885
|
|
|
9,995
|
|
|
48,536
|
|
|
34,554
|
|
Total Homebuilding
revenues
|
2,018,194
|
|
|
1,786,464
|
|
|
5,841,211
|
|
|
5,696,725
|
|
|
|
|
|
|
|
|
|
Home sale cost of
revenues
|
1,527,594
|
|
|
1,366,584
|
|
|
4,440,893
|
|
|
4,343,249
|
|
Land sale cost of
revenues
|
13,867
|
|
|
8,367
|
|
|
35,858
|
|
|
23,748
|
|
Selling, general, and
administrative expenses
|
138,990
|
|
|
146,024
|
|
|
589,780
|
|
|
667,815
|
|
Other expense,
net
|
(6,276)
|
|
|
11,371
|
|
|
17,363
|
|
|
26,736
|
|
Income before income
taxes
|
$
|
344,019
|
|
|
$
|
254,118
|
|
|
$
|
757,317
|
|
|
$
|
635,177
|
|
|
|
|
|
|
|
|
|
FINANCIAL
SERVICES:
|
|
|
|
|
|
|
|
Income before income
taxes
|
$
|
29,297
|
|
|
$
|
13,002
|
|
|
$
|
58,706
|
|
|
$
|
54,581
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED:
|
|
|
|
|
|
|
|
Income before income
taxes
|
$
|
373,315
|
|
|
$
|
267,120
|
|
|
$
|
816,023
|
|
|
$
|
689,758
|
|
PulteGroup,
Inc.
Segment Data,
continued
($000's
omitted)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Home sale
revenues
|
$
|
1,997,309
|
|
|
$
|
1,776,469
|
|
|
$
|
5,792,675
|
|
|
$
|
5,662,171
|
|
|
|
|
|
|
|
|
|
Closings - units
(a)
|
|
|
|
|
|
|
|
Northeast
|
531
|
|
|
496
|
|
|
1,496
|
|
|
1,568
|
|
Southeast
|
1,027
|
|
|
895
|
|
|
3,276
|
|
|
3,160
|
|
Florida
|
986
|
|
|
808
|
|
|
2,896
|
|
|
2,752
|
|
Midwest
|
977
|
|
|
908
|
|
|
2,961
|
|
|
2,581
|
|
Texas
|
1,036
|
|
|
1,121
|
|
|
3,357
|
|
|
3,750
|
|
West
|
1,105
|
|
|
1,088
|
|
|
3,141
|
|
|
3,385
|
|
|
5,662
|
|
|
5,316
|
|
|
17,127
|
|
|
17,196
|
|
Average selling
price
|
$
|
353
|
|
|
$
|
334
|
|
|
$
|
338
|
|
|
$
|
329
|
|
|
|
|
|
|
|
|
|
Net new orders -
units (a)
|
|
|
|
|
|
|
|
Northeast
|
253
|
|
|
248
|
|
|
1,479
|
|
|
1,408
|
|
Southeast
|
695
|
|
|
615
|
|
|
3,454
|
|
|
3,075
|
|
Florida
|
697
|
|
|
567
|
|
|
3,168
|
|
|
2,841
|
|
Midwest
|
630
|
|
|
482
|
|
|
2,862
|
|
|
2,329
|
|
Texas
|
621
|
|
|
727
|
|
|
3,429
|
|
|
3,773
|
|
West
|
763
|
|
|
593
|
|
|
3,616
|
|
|
3,226
|
|
|
3,659
|
|
|
3,232
|
|
|
18,008
|
|
|
16,652
|
|
Net new orders -
dollars (b)
|
$
|
1,364,821
|
|
|
$
|
1,105,042
|
|
|
$
|
6,305,380
|
|
|
$
|
5,558,937
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
2015
|
|
2014
|
Unit backlog
(a)
|
|
|
|
|
|
|
|
Northeast
|
|
|
|
|
444
|
|
|
461
|
|
Southeast
|
|
|
|
|
1,146
|
|
|
968
|
|
Florida
|
|
|
|
|
1,274
|
|
|
1,002
|
|
Midwest
|
|
|
|
|
1,089
|
|
|
1,188
|
|
Texas
|
|
|
|
|
1,345
|
|
|
1,273
|
|
West
|
|
|
|
|
1,433
|
|
|
958
|
|
|
|
|
|
|
6,731
|
|
|
5,850
|
|
Dollars in
backlog
|
|
|
|
|
$
|
2,456,565
|
|
|
$
|
1,943,861
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
(b)
|
For 2015, we
realigned our organizational structure and reportable segment
presentation. Accordingly, the segment information provided in the
table above has been reclassified to conform to the current
presentation for all periods presented.
|
PulteGroup,
Inc.
Segment Data,
continued
($000's
omitted)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
MORTGAGE
ORIGINATIONS:
|
|
|
|
|
|
|
|
Origination
volume
|
3,820
|
|
|
3,323
|
|
|
11,435
|
|
|
10,805
|
|
Origination
principal
|
$
|
1,013,140
|
|
|
$
|
839,856
|
|
|
$
|
2,929,531
|
|
|
$
|
2,656,683
|
|
Capture
rate
|
82.8
|
%
|
|
81.4
|
%
|
|
82.9
|
%
|
|
80.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Data
($000's
omitted)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Interest in
inventory, beginning of period
|
$
|
155,781
|
|
|
$
|
190,342
|
|
|
$
|
167,638
|
|
|
$
|
230,922
|
|
Interest
capitalized
|
29,896
|
|
|
32,651
|
|
|
120,001
|
|
|
131,444
|
|
Interest
expensed
|
(36,179)
|
|
|
(55,355)
|
|
|
(138,141)
|
|
|
(194,728)
|
|
Interest in
inventory, end of period
|
$
|
149,498
|
|
|
$
|
167,638
|
|
|
$
|
149,498
|
|
|
$
|
167,638
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/pultegroup-reports-financial-results-for-2015-fourth-quarter-300210961.html
SOURCE PulteGroup, Inc.