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PulteGroup, Inc.Summary of Financial Results
Second Quarter 2013
Forward-Looking StatementsThis presentation 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 successfully implement our share repurchase plan; 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, 2012, 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.
Certain statements in this presentation contain references to non-GAAP financial measures. A reconciliation of the non-GAAP
financial measures to the comparable GAAP numbers is included in this presentation.
1
PulteGroup, Inc. Executives
2
Richard
Dugas
Chairman,
President
and CEO
Bob
O’Shaughnessy
Executive
Vice President
and CFO
Jim
Ossowski
Vice President,
Finance and
Controller
Jim
Zeumer
Vice President,
Investor Relations
and Corporate
Communications
3
Review of Q2 2013 Financial Results
Q2 2013 net income of $36 million, or $0.09 per share,
includes $67 million, or $0.17 per share, in charges for a
contractual dispute, debt repurchases and corporate office
relocation
Q2 2012 net income of $42 million, or $0.11 per share
Home sale revenues up 19% to $1.2 billion driven by
increases of 9% in closings and ASP
Adjusted gross margin of 23.9% increased 360 basis
points over prior year
4
Q2 2013 Highlights
5
Q2 2013 Highlights - continued
Backlog value climbs 25% to $2.7 billion
Unit backlog up 13% to 8,558 homes
Quarter end cash of $1.3 billion, after retiring $434
million of notes
Net debt-to-cap lowered to 26%
Company declares $0.05 quarterly dividend
New authorization increases share repurchase
plan to $352 million
6
Sustained Gross Margin Expansion
15.1%17.0% 17.1%
18.0%18.8%
20.3%21.6% 21.8%
22.9%23.9%
0%
5%
10%
15%
20%
25%
30%
Q2'12 Q3'12 Q4'12 Q1'13 Q2'13
Gross Margin Adjusted Gross Margin *
* Home Sale Gross Margin % Before Impairments & Interest Expense. See Supplemental Non-GAAP
data on slide 14 for detail.
Q2 2013 land acquisition and
development spend totaled $332
million
Company retired $434 million of
debt in the quarter
Cash dividend of $0.05 declared;
first since 2008
Share repurchase authorization
increased to $352 million
Quarter-end cash of $1.3 billion,
after land investment and debt
pay down
7
Balanced Capital Allocation
Net Debt-to-Cap Ratio
Three Months Ended
June 30,
2013 2012
Homebuilding Home Sale Revenues ($ millions) $1,220 $1,024
Homebuilding Pretax Income ($ millions) * $22 $24
Backlog (Units) 8,558 7,560
Backlog (Dollar Value in millions) $2,714 $2,167
Financial Services Pretax Income ($ millions) $16 $16
Income Before Income Taxes ($ millions) * $38 $40
Net Income Per Share * $0.09 $0.11
8
Q2 2013 Selected Financial Data
* Reflects the impact of $67 million, or $0.17 per share, in charges taken in Q2 2013 for a contractual dispute, debt
repurchases and corporate office relocation
($ millions)
June 30,
2013
December 31,
2012
Cash and Equivalents
(including restricted cash)$1,279 $1,477
House and Land Inventory $4,183 $4,214
Senior Notes $2,082 $2,510
Shareholders’ Equity $2,328 $2,190
Debt – to – Cap 47% 53%
Net Debt – to – Cap (adjusted for cash) 26% 32%
9
Q2 2013 Balance Sheet Analysis
10
Supplemental Mortgage Data
Gross Monthly Loan Repurchase Requests
11
Gross Loan Repurchase Requests Per Month
Over 60% of gross loan repurchase requests are successfully refuted or cured by our mortgage operations.
Requests undergo extensive analysis to verify exposure, attempt to correct the underlying issue and, when
needed, confirm liability.
12
Supplemental Non-GAAP Data
This presentation contains information about home sale gross margin reflecting certain adjustments. This measure is considered
a non-GAAP financial measure under the SEC’s rules and should be considered in addition to, rather than as a substitute for, the
comparable GAAP financial measure as a measure of our operating performance. Management and our local divisions use this
measure in evaluating the operating performance of each community and in making strategic decisions regarding sales pricing,
construction and development pace, product mix, and other daily operating decisions. We believe it is a relevant and useful
measure to investors for evaluating our performance through gross profit generated on homes delivered during a given period
and for comparing our operating performance to other companies in the homebuilding industry. Although other companies in the
homebuilding industry report similar information, the methods used may differ. We urge investors to understand the methods
used by other companies in the homebuilding industry to calculate gross margins and any adjustments thereto before comparing
our measure to that of such other companies.
The following table sets forth a reconciliation of this non-GAAP financial measure to the GAAP financial measure that
management believes to be most directly comparable.
13
Reconciliation of Non-GAAP Data
14
Three Months Ended
June 30,
2013
March 31,
2013
December 31,
2012
September 30,
2012
June 30,
2012
($ thousands)
Home sale revenues $ 1,219,675 $ 1,099,752 $ 1,481,517 $ 1,232,704 $ 1,024,405
Home sale cost of revenues 990,818 901,470 1,228,201 1,023,704 869,379
Home sale gross margin 228,857 198,282 253,316 209,000 155,026
Add:
Impairments (a) - - 2,250 385 633
Capitalized interest amortization (a) 62,193 53,677 67,880 57,155 52,070
Adjusted home sale gross margin $ 291,050 $ 251,959 $ 323,446 $ 266,540 $ 207,729
Home sale gross margin as a percentage of home sale
revenues 18.8% 18.0% 17.1% 17.0% 15.1%
Adjusted home sale gross margin as a percentage of
home sale revenues 23.9% 22.9% 21.8% 21.6% 20.3%
(a) Write-offs of capitalized interest related to impairments are reflected in capitalized interest amortization.
Supplemental Non-GAAP Data – Adjusted Margin Analysis