-
Reported Net Income Per Share of $1.12 Reflects Favorable Impact of
Insurance Adjustments, Land Sale Gains and Lower Tax Rate
-
Revenue Growth and Operational Gains Drive 89% Year-Over-Year
Increase in Adjusted Net Income Per Share to $0.89
-
Home Sale Revenues Increased 25% to $2.5 Billion
-
Reported Gross Margin Increased to 24.0%
-
Reported Operating Margin of 14.8%; Adjusted Operating Margin
Increased 180 Basis Points Over Prior Year to 13.2%
-
Value of Net New Orders Increased 3% to $2.7 Billion; Net New
Orders Decreased 1% to 6,341 Homes
-
Backlog Value Increased 17% to $5.2 Billion; Backlog Increased 11%
to 11,845 Homes
ATLANTA--(BUSINESS WIRE)--
PulteGroup, Inc. (NYSE: PHM) announced today financial results for its
second quarter ended June 30, 2018. For the quarter, the Company’s
reported net income was $324 million, or $1.12 per share. Adjusted net
income for the period was $259 million, or $0.89 per share, after
excluding $38 million of pretax benefit associated with insurance
reserve adjustments, $26 million of pretax land-sale gains, and $17
million of net tax benefits recorded during the period.
Reported net income for the prior year second quarter was $101 million,
or $0.32 per share. Adjusted net income for the prior year period was
$148 million, or $0.47 per share, after excluding $121 million of pretax
charges associated with the decision to dispose of select non-core land
assets, $8 million of net pretax benefit relating to warranty and
insurance reserve adjustments, and $24 million of net tax benefits
recorded during the period.
“Working against our defined strategic plan, our operating teams
continue to do an outstanding job as revenues increased 25%, adjusted
gross margin increased 60 basis points, and adjusted EPS surged 89%,”
said Ryan Marshall, President and Chief Executive Officer of PulteGroup.
“Given the operating and financial gains we have realized through the
first half of 2018, and with almost 12,000 homes in backlog, we are well
positioned to deliver outstanding full-year results.”
“We continue to see U.S. housing demand being supported by a number of
positive market dynamics including an expanding economy, ongoing growth
in jobs and wages, historically low unemployment, and sustained high
levels of consumer confidence,” added Mr. Marshall. “With our strong
land pipeline and ability to serve all primary buyer groups, we believe
PulteGroup is well positioned to grow its business within this market
environment, while continuing to generate high financial returns.”
Second Quarter Results
Home sale revenues for the second quarter increased 25% over the prior
year to $2.5 billion. The increase in revenues for the period was driven
by a 14% increase in deliveries to 5,741 homes, combined with a 10%
increase in average sales price to $427,000.
Reported gross margin for the second quarter was 24.0%, which is 60
basis points higher than second quarter 2017 adjusted gross margin of
23.4%. Prior year adjusted gross margin excludes the impact of the
land-related and warranty charges recorded in the period.
Reported SG&A expense for the second quarter of $226 million, or 9.2% of
home sale revenues, includes the $38 million benefit relating to an
insurance reserve adjustment recorded in the period. Exclusive of this
benefit, adjusted SG&A expense for the quarter was $264 million, or
10.8% of home sale revenues. Adjusted SG&A expense for the prior year
was $236 million, or 12.0% of home sale revenues, which excludes a $20
million benefit relating to an insurance reserve adjustment recorded in
the period.
In the quarter, the Company recorded land sales gains totaling $27.3
million relating primarily to the sale of two land parcels that were
completed in the period.
Net new orders for the second quarter declined less than 1.0% from the
prior year to 6,341 homes. The dollar value of net new orders increased
3% to $2.7 billion. For the quarter, the Company operated out of 847
communities.
PulteGroup’s unit backlog increased 11% over the prior year to 11,845
homes. The value of homes in backlog increased 17% to $5.2 billion. The
average sales price of homes in backlog is $439,000, which is 5% higher
than last year’s average sales price in backlog.
Second quarter pretax income for the Company's financial services
operations increased 9% over the prior year to $21 million. Financial
services benefitted from higher homebuilder closing volumes and an
increase in the average loan size. Mortgage capture rate for the quarter
was 76%, compared with 79% in the prior year.
For the quarter, the Company reported $85 million of income tax expense,
representing an effective tax rate of 20.8%. The Company’s tax rate for
the quarter included the net benefit of $17 million of tax adjustments
recorded in the period. Excluding this benefit, the Company’s effective
tax rate would have been approximately 25%.
During the quarter, PulteGroup repurchased 1.7 million common shares for
$53 million, or an average price of $30.07 per share.
A conference call discussing PulteGroup's second quarter 2018 results is
scheduled for Thursday, July 26, 2018, at 8:00 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,” “plan,” “project,” “may,”
“can,” “could,” “might,” "should", “will” and similar expressions
identify forward-looking statements, including statements related to any
impairment charge and the impacts or effects thereof, 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;
competition within the industries in which we operate; the availability
and cost of land and other raw materials used by us in our 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 and the levels of our land spend; the availability and
cost of insurance covering risks associated with our 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,
including, but not limited to the Tax Cuts and Jobs Act which could have
a greater impact on our effective tax rate or the value of our deferred
tax assets than we anticipate; economic changes nationally or in our
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, 2017, 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
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Homebuilding
|
|
|
|
|
|
|
|
|
|
Home sale revenues
|
|
$
|
2,450,054
|
|
|
$
|
1,965,641
|
|
|
$
|
4,361,652
|
|
|
$
|
3,551,063
|
|
|
Land sale and other revenues
|
|
66,904
|
|
|
8,944
|
|
|
79,461
|
|
|
11,632
|
|
|
|
2,516,958
|
|
|
1,974,585
|
|
|
4,441,113
|
|
|
3,562,695
|
|
|
Financial Services
|
|
52,764
|
|
|
47,275
|
|
|
98,702
|
|
|
89,042
|
|
|
Total revenues
|
|
2,569,722
|
|
|
2,021,860
|
|
|
4,539,815
|
|
|
3,651,737
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding Cost of Revenues:
|
|
|
|
|
|
|
|
|
|
Home sale cost of revenues
|
|
(1,862,133
|
)
|
|
(1,549,937
|
)
|
|
(3,322,073
|
)
|
|
(2,767,615
|
)
|
|
Land sale cost of revenues
|
|
(38,183
|
)
|
|
(87,599
|
)
|
|
(49,731
|
)
|
|
(90,827
|
)
|
|
|
(1,900,316
|
)
|
|
(1,637,536
|
)
|
|
(3,371,804
|
)
|
|
(2,858,442
|
)
|
|
|
|
|
|
|
|
|
|
|
Financial Services expenses
|
|
(32,224
|
)
|
|
(28,478
|
)
|
|
(64,436
|
)
|
|
(56,846
|
)
|
|
Selling, general, and administrative expenses
|
|
(226,056
|
)
|
|
(216,211
|
)
|
|
(466,950
|
)
|
|
(452,479
|
)
|
|
Other expense, net
|
|
(1,956
|
)
|
|
(17,088
|
)
|
|
(3,263
|
)
|
|
(22,157
|
)
|
|
Income before income taxes
|
|
409,170
|
|
|
122,547
|
|
|
633,362
|
|
|
261,813
|
|
|
Income tax expense
|
|
(85,081
|
)
|
|
(21,798
|
)
|
|
(138,521
|
)
|
|
(69,545
|
)
|
|
Net income
|
|
$
|
324,089
|
|
|
$
|
100,749
|
|
|
$
|
494,841
|
|
|
$
|
192,268
|
|
|
|
|
|
|
|
|
|
|
|
Per share:
|
|
|
|
|
|
|
|
|
|
Basic earnings
|
|
$
|
1.12
|
|
|
$
|
0.32
|
|
|
$
|
1.72
|
|
|
$
|
0.60
|
|
|
Diluted earnings
|
|
$
|
1.12
|
|
|
$
|
0.32
|
|
|
$
|
1.71
|
|
|
$
|
0.60
|
|
|
Cash dividends declared
|
|
$
|
0.09
|
|
|
$
|
0.09
|
|
|
$
|
0.18
|
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares used in calculation:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
285,276
|
|
|
312,315
|
|
|
285,976
|
|
|
315,021
|
|
|
Effect of dilutive securities
|
|
1,378
|
|
|
1,565
|
|
|
1,088
|
|
|
1,946
|
|
|
Diluted
|
|
286,654
|
|
|
313,880
|
|
|
287,064
|
|
|
316,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PulteGroup, Inc.
Condensed Consolidated Balance Sheets
($000's omitted)
(Unaudited)
|
|
|
June 30,
2018
|
|
December 31,
2017
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents
|
|
$
|
367,091
|
|
|
$
|
272,683
|
|
Restricted cash
|
|
34,824
|
|
|
33,485
|
|
Total cash, cash equivalents, and restricted cash
|
|
401,915
|
|
|
306,168
|
|
House and land inventory
|
|
7,499,665
|
|
|
7,147,130
|
|
Land held for sale
|
|
77,941
|
|
|
68,384
|
|
Residential mortgage loans available-for-sale
|
|
369,634
|
|
|
570,600
|
|
Investments in unconsolidated entities
|
|
61,718
|
|
|
62,957
|
|
Other assets
|
|
759,230
|
|
|
745,123
|
|
Intangible assets
|
|
134,092
|
|
|
140,992
|
|
Deferred tax assets, net
|
|
511,381
|
|
|
645,295
|
|
|
$
|
9,815,576
|
|
|
$
|
9,686,649
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
399,330
|
|
|
$
|
393,815
|
|
Customer deposits
|
|
354,968
|
|
|
250,779
|
|
Accrued and other liabilities
|
|
1,242,349
|
|
|
1,356,333
|
|
Income tax liabilities
|
|
22,484
|
|
|
86,925
|
|
Financial Services debt
|
|
264,043
|
|
|
437,804
|
|
Notes payable
|
|
3,005,690
|
|
|
3,006,967
|
|
|
5,288,864
|
|
|
5,532,623
|
|
Shareholders' equity
|
|
4,526,712
|
|
|
4,154,026
|
|
|
$
|
9,815,576
|
|
|
$
|
9,686,649
|
|
|
|
|
|
|
|
|
|
|
|
PulteGroup, Inc.
Consolidated Statements of Cash Flows
($000's omitted)
(Unaudited)
|
|
|
Six Months Ended
|
|
|
June 30,
|
|
|
2018
|
|
2017
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
494,841
|
|
|
$
|
192,268
|
|
|
Adjustments to reconcile net income to net cash from operating
activities:
|
|
|
|
|
|
Deferred income tax expense
|
|
126,991
|
|
|
80,841
|
|
|
Land-related charges
|
|
5,841
|
|
|
129,108
|
|
|
Depreciation and amortization
|
|
24,161
|
|
|
26,023
|
|
|
Share-based compensation expense
|
|
16,162
|
|
|
20,871
|
|
|
Other, net
|
|
(2,803
|
)
|
|
(1,536
|
)
|
|
Increase (decrease) in cash due to:
|
|
|
|
|
|
Inventories
|
|
(281,362
|
)
|
|
(486,393
|
)
|
|
Residential mortgage loans available-for-sale
|
|
199,623
|
|
|
172,943
|
|
|
Other assets
|
|
15,822
|
|
|
15,309
|
|
|
Accounts payable, accrued and other liabilities
|
|
(51,694
|
)
|
|
26,892
|
|
|
Net cash provided by (used in) operating activities
|
|
547,582
|
|
|
176,326
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Capital expenditures
|
|
(33,059
|
)
|
|
(16,892
|
)
|
|
Investments in unconsolidated entities
|
|
(1,000
|
)
|
|
(17,832
|
)
|
|
Other investing activities, net
|
|
6,915
|
|
|
3,143
|
|
|
Net cash used in investing activities
|
|
(27,144
|
)
|
|
(31,581
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Repayments of debt
|
|
(82,432
|
)
|
|
(2,153
|
)
|
|
Borrowings under revolving credit facility
|
|
1,566,000
|
|
|
110,000
|
|
|
Repayments under revolving credit facility
|
|
(1,566,000
|
)
|
|
(110,000
|
)
|
|
Financial Services borrowings (repayments)
|
|
(173,761
|
)
|
|
(177,918
|
)
|
|
Debt issuance costs
|
|
(8,090
|
)
|
|
—
|
|
|
Stock option exercises
|
|
4,467
|
|
|
15,966
|
|
|
Share repurchases
|
|
(112,491
|
)
|
|
(405,819
|
)
|
|
Dividends paid
|
|
(52,384
|
)
|
|
(58,214
|
)
|
|
Net cash provided by (used in) financing activities
|
|
(424,691
|
)
|
|
(628,138
|
)
|
|
Net increase (decrease)
|
|
95,747
|
|
|
(483,393
|
)
|
|
Cash, cash equivalents, and restricted cash at beginning of period
|
|
306,168
|
|
|
723,248
|
|
|
Cash, cash equivalents, and restricted cash at end of period
|
|
$
|
401,915
|
|
|
$
|
239,855
|
|
|
|
|
|
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
|
Interest paid (capitalized), net
|
|
$
|
(387
|
)
|
|
$
|
(2,359
|
)
|
|
Income taxes paid (refunded), net
|
|
$
|
77,077
|
|
|
$
|
(10,980
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
PulteGroup, Inc.
Segment Data
($000's omitted)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
HOMEBUILDING:
|
|
|
|
|
|
|
|
|
|
Home sale revenues
|
|
$
|
2,450,054
|
|
|
$
|
1,965,641
|
|
|
$
|
4,361,652
|
|
|
$
|
3,551,063
|
|
|
Land sale and other revenues
|
|
66,904
|
|
|
8,944
|
|
|
79,461
|
|
|
11,632
|
|
|
Total Homebuilding revenues
|
|
2,516,958
|
|
|
1,974,585
|
|
|
4,441,113
|
|
|
3,562,695
|
|
|
|
|
|
|
|
|
|
|
|
Home sale cost of revenues
|
|
(1,862,133
|
)
|
|
(1,549,937
|
)
|
|
(3,322,073
|
)
|
|
(2,767,615
|
)
|
|
Land sale cost of revenues
|
|
(38,183
|
)
|
|
(87,599
|
)
|
|
(49,731
|
)
|
|
(90,827
|
)
|
|
Selling, general, and administrative expenses ("SG&A")
|
|
(226,056
|
)
|
|
(216,211
|
)
|
|
(466,950
|
)
|
|
(452,479
|
)
|
|
Other expense, net
|
|
(2,133
|
)
|
|
(17,239
|
)
|
|
(3,548
|
)
|
|
(22,412
|
)
|
|
Income before income taxes
|
|
$
|
388,453
|
|
|
$
|
103,599
|
|
|
$
|
598,811
|
|
|
$
|
229,362
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL SERVICES:
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
$
|
20,717
|
|
|
$
|
18,948
|
|
|
$
|
34,551
|
|
|
$
|
32,451
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED:
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
$
|
409,170
|
|
|
$
|
122,547
|
|
|
$
|
633,362
|
|
|
$
|
261,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING METRICS:
|
|
|
|
|
|
|
|
|
|
Gross margin % (a)(b) |
|
24.0
|
%
|
|
21.1
|
%
|
|
23.8
|
%
|
|
22.1
|
%
|
|
SG&A % (a) |
|
(9.2
|
)%
|
|
(11.0
|
)%
|
|
(10.7
|
)%
|
|
(12.7
|
)%
|
|
Operating margin % (a) |
|
14.8
|
%
|
|
10.1
|
%
|
|
13.1
|
%
|
|
9.4
|
%
|
|
(a)
|
As a percentage of home sale revenues.
|
|
(b)
|
Gross margin equals home sale revenues minus home sale cost of
revenues.
|
|
|
|
|
|
PulteGroup, Inc.
Segment Data, continued
($000's omitted)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Home sale revenues
|
|
$
|
2,450,054
|
|
|
$
|
1,965,641
|
|
|
$
|
4,361,652
|
|
|
$
|
3,551,063
|
|
|
|
|
|
|
|
|
|
|
Closings - units
|
|
|
|
|
|
|
|
|
|
Northeast
|
|
401
|
|
|
296
|
|
|
652
|
|
|
528
|
|
Southeast
|
|
1,072
|
|
|
949
|
|
|
1,996
|
|
|
1,785
|
|
Florida
|
|
1,134
|
|
|
910
|
|
|
2,021
|
|
|
1,742
|
|
Midwest
|
|
872
|
|
|
907
|
|
|
1,639
|
|
|
1,575
|
|
Texas
|
|
1,096
|
|
|
1,042
|
|
|
1,905
|
|
|
1,882
|
|
West
|
|
1,166
|
|
|
940
|
|
|
2,154
|
|
|
1,757
|
|
|
5,741
|
|
|
5,044
|
|
|
10,367
|
|
|
9,269
|
|
Average selling price
|
|
$
|
427
|
|
|
$
|
390
|
|
|
$
|
421
|
|
|
$
|
383
|
|
|
|
|
|
|
|
|
|
|
Net new orders - units
|
|
|
|
|
|
|
|
|
|
Northeast
|
|
450
|
|
|
376
|
|
|
898
|
|
|
787
|
|
Southeast
|
|
1,093
|
|
|
1,193
|
|
|
2,352
|
|
|
2,270
|
|
Florida
|
|
1,347
|
|
|
1,090
|
|
|
2,791
|
|
|
2,130
|
|
Midwest
|
|
1,055
|
|
|
1,089
|
|
|
2,157
|
|
|
2,251
|
|
Texas
|
|
1,183
|
|
|
1,189
|
|
|
2,506
|
|
|
2,400
|
|
West
|
|
1,213
|
|
|
1,458
|
|
|
2,512
|
|
|
2,683
|
|
|
6,341
|
|
|
6,395
|
|
|
13,216
|
|
|
12,521
|
|
Net new orders - dollars
|
|
$
|
2,694,271
|
|
|
$
|
2,625,091
|
|
|
$
|
5,587,823
|
|
|
$
|
5,071,230
|
|
|
|
|
|
|
|
|
|
|
Unit backlog
|
|
|
|
|
|
|
|
|
|
Northeast
|
|
|
|
|
|
758
|
|
|
646
|
|
Southeast
|
|
|
|
|
|
2,072
|
|
|
1,856
|
|
Florida
|
|
|
|
|
|
2,448
|
|
|
1,806
|
|
Midwest
|
|
|
|
|
|
2,005
|
|
|
1,983
|
|
Texas
|
|
|
|
|
|
2,027
|
|
|
1,930
|
|
West
|
|
|
|
|
|
2,535
|
|
|
2,453
|
|
|
|
|
|
|
11,845
|
|
|
10,674
|
|
Dollars in backlog
|
|
|
|
|
|
$
|
5,205,234
|
|
|
$
|
4,461,680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PulteGroup, Inc.
Segment Data, continued
($000's omitted)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
MORTGAGE ORIGINATIONS:
|
|
|
|
|
|
|
|
|
|
Origination volume
|
|
3,635
|
|
|
3,330
|
|
|
6,627
|
|
|
6,203
|
|
|
Origination principal
|
|
$
|
1,122,017
|
|
|
$
|
969,691
|
|
|
$
|
2,031,817
|
|
|
$
|
1,776,043
|
|
|
Capture rate
|
|
75.8
|
%
|
|
78.9
|
%
|
|
76.6
|
%
|
|
79.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
($000's omitted)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Interest in inventory, beginning of period
|
|
$
|
240,013
|
|
|
$
|
203,828
|
|
|
$
|
226,611
|
|
|
$
|
186,097
|
|
|
Interest capitalized
|
|
43,771
|
|
|
44,949
|
|
|
87,731
|
|
|
89,872
|
|
|
Interest expensed
|
|
(40,157
|
)
|
|
(35,927
|
)
|
|
(70,715
|
)
|
|
(63,119
|
)
|
|
Interest in inventory, end of period
|
|
$
|
243,627
|
|
|
$
|
212,850
|
|
|
$
|
243,627
|
|
|
$
|
212,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PulteGroup, Inc.
Reconciliation of Non-GAAP Financial
Measures
(Unaudited)
This report contains information about our operating results reflecting
certain adjustments, including: adjustments to gross margin from home
sales; selling general, and administrative expenses ("SG&A"); net
income; and diluted earnings per share ("EPS"). These measures are
considered non-GAAP financial measures under the SEC's rules and should
be considered in addition to, rather than as a substitute for, the
comparable GAAP financial measures as measures of our profitability. We
believe that reflecting these adjustments provides investors relevant
and useful information for evaluating the comparability of financial
information presented and comparing our profitability 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 these measures and
any adjustments thereto before comparing our measures to those of such
other companies.
The following tables set forth a reconciliation of the non-GAAP
financial measures to the GAAP financial measures that management
believes to be most directly comparable ($000's omitted):
|
|
|
Reconciliation of Adjusted Net Income and Adjusted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Results of Operations
Classification
|
|
June 30,
|
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
Net income, as reported
|
|
|
|
|
$
|
324,089
|
|
|
$
|
100,749
|
|
|
Adjustments to income before income taxes:
|
|
|
|
|
|
|
|
|
Land and community valuation adjustments
|
|
|
Home sale cost of revenues
|
|
—
|
|
|
31,487
|
|
|
Warranty claim
|
|
|
Home sale cost of revenues
|
|
—
|
|
|
12,106
|
|
|
Net realizable value adjustments - land held for sale
|
|
|
Land sale cost of revenues
|
|
—
|
|
|
81,006
|
|
|
Land sale gains
|
|
|
Land sale revenues /
cost of revenues
|
|
(26,402
|
)
|
|
—
|
|
|
Insurance reserve reversal
|
|
|
SG&A
|
|
(37,890
|
)
|
|
(19,813
|
)
|
|
Impairments of joint ventures
|
|
|
Other expense, net
|
|
—
|
|
|
8,017
|
|
|
Income tax effect of the above items
|
|
|
Income tax expense
|
|
16,086
|
|
|
(41,737
|
)
|
|
Net tax benefits
|
|
|
Income tax expense
|
|
(17,276
|
)
|
|
(23,808
|
)
|
|
Adjusted net income
|
|
|
|
|
$
|
258,607
|
|
|
$
|
148,007
|
|
|
|
|
|
|
|
|
|
|
EPS (diluted), as reported
|
|
|
|
|
$
|
1.12
|
|
|
$
|
0.32
|
|
|
Adjusted EPS (diluted)
|
|
|
|
|
$
|
0.89
|
|
|
$
|
0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Reconciliations
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
June 30,
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Home sale revenues
|
|
$
|
2,450,054
|
|
|
|
$
|
1,965,641
|
|
|
|
|
|
|
|
|
|
|
Gross margin from home sales, as reported
|
|
$
|
587,921
|
|
24.0
|
%
|
|
$
|
415,704
|
|
21.1
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
Land and community valuation adjustments
|
|
—
|
|
—
|
%
|
|
31,487
|
|
1.6
|
%
|
|
Warranty claim
|
|
—
|
|
—
|
%
|
|
12,106
|
|
0.6
|
%
|
|
Adjusted gross margin from home sales
|
|
$
|
587,921
|
|
24.0
|
%
|
|
$
|
459,297
|
|
23.4
|
%
|
|
|
|
|
|
|
|
|
SG&A, as reported
|
|
$
|
226,056
|
|
9.2
|
%
|
|
$
|
216,211
|
|
11.0
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
Insurance reserve reversal
|
|
37,890
|
|
1.5
|
%
|
|
19,813
|
|
1.0
|
%
|
|
Adjusted SG&A
|
|
$
|
263,946
|
|
10.8
|
%
|
|
$
|
236,024
|
|
12.0
|
%
|
|
|
|
|
|
|
|
|
Operating margin, as reported*
|
|
|
14.8
|
%
|
|
|
10.1
|
%
|
|
Adjusted operating margin**
|
|
|
13.2
|
%
|
|
|
11.4
|
%
|
|
|
|
|
|
|
|
|
|
|
*Operating margin represents gross margin from home sales less
SG&A
**Adjusted operating margin represents adjusted gross margin
from home sales less adjusted SG&A
|
|
|
View source version on businesswire.com:
https://www.businesswire.com/news/home/20180726005091/en/
PulteGroup, Inc.
Jim Zeumer, 404-978-6434
jim.zeumer@pultegroup.com
Source: PulteGroup, Inc.