ATLANTA, April 23, 2015 /PRNewswire/ --
- 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
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.
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
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.
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
|
|
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
|
|
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)
|
|
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
|
|
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
|
|
|
|
|
|
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
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/pultegroup-inc-reports-first-quarter-2015-financial-results-300070501.html
SOURCE PulteGroup, Inc.