-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BEiK+Je7SN7Wx0wNKioup8tw31RUNobhjz9ja/Ui7CJYeifg38ldT9YV1UtWuBE6 Ng+epsq7DSyQvG7bowYiPA== 0000950124-03-000164.txt : 20030128 0000950124-03-000164.hdr.sgml : 20030128 20030128165652 ACCESSION NUMBER: 0000950124-03-000164 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030128 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030128 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PULTE HOMES INC CENTRAL INDEX KEY: 0000769291 STANDARD INDUSTRIAL CLASSIFICATION: LAND SUBDIVIDERS & DEVELOPERS (NO CEMETERIES) [6552] IRS NUMBER: 381545089 STATE OF INCORPORATION: MI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08902 FILM NUMBER: 03528338 BUSINESS ADDRESS: STREET 1: C/O PULTE HOMES, INC. STREET 2: 100 BLOOMFIED HILLS PKWY #300 CITY: BLOOMFIELD HILLS STATE: MI ZIP: 48304-2946 BUSINESS PHONE: 2486472750 MAIL ADDRESS: STREET 1: C/O PULTE HOMES, INC. STREET 2: 100 BLOOMFIELD HILLS PKWY #300 CITY: BLOOMFIELD HILLS STATE: MI ZIP: 48304-2946 FORMER COMPANY: FORMER CONFORMED NAME: PULTE HOME CORP DATE OF NAME CHANGE: 20000509 8-K 1 k74271e8vk.txt FORM 8-K 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): January 28, 2003 ---------------- PULTE HOMES, INC ------------------------------------------------------ (Exact name of registrant as specified in its Chapter) Michigan 1-9804 38-2766606 - ---------------------------- ---------------- ------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 100 Bloomfield Hills Parkway, Suite 300, Bloomfield Hills, Michigan 48304 ------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (248) 647-2750 -------------- ------------------------------------------------------------------------- (Former name or former address, if changed since last report) ITEM 5. OTHER EVENTS On January 28, 2003, Pulte Homes, Inc. issued the press release attached hereto as Exhibit 99.1 announcing its earnings for the three months and year ended December 31, 2002. ITEM 7. EXHIBITS Exhibit 99.1: Fourth quarter earnings press release dated January 28, 2003. 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. PULTE HOMES, INC. Date: January 28, 2003 By: /S/ JOHN R. STOLLER ----------------------------------------- Name: John R. Stoller Title: Senior Vice President, General Counsel and Secretary INDEX TO EXHIBITS EXHIBIT NO. DESCRIPTION - ----------- ----------- Exhibit 99.1: Fourth quarter earnings press release dated January 28, 2003. EX-99.1 3 k74271exv99w1.txt PRESS RELEASE DATED JANUARY 28, 2003 EXHIBIT 99.1 [PULTE HOMES LOGO] FOR IMMEDIATE RELEASE Investor Relations Contact: James Zeumer Vice President (248) 433-4597 email: jim.zeumer@pulte.com Media Relations Contact: Valerie Dolenga Corporate Communications (248) 433-4633 email: valerie.dolenga@pulte.com PULTE HOMES REPORTS RECORD FOURTH QUARTER RESULTS, AS INCOME FROM CONTINUING OPERATIONS INCREASES 44 PERCENT TO $172 MILLION, OR $2.78 PER SHARE - - Q4 ORDERS INCREASE 23%; YEAREND BACKLOG JUMPS 22% TO 10,605 HOMES VALUED AT $2.9 BILLION - - DOMESTIC CLOSINGS FOR THE QUARTER REACH A RECORD 9,528 - - FULL YEAR 2002 INCOME FROM CONTINUING OPERATIONS CLIMBS 47% TO $445 MILLION, OR $7.20 PER SHARE - - RETURN ON EQUITY FOR THE YEAR CLIMBS TO 18%, AS NET DEBT TO TOTAL CAPITALIZATION DROPS TO 32% BLOOMFIELD HILLS, MI, JANUARY 28, 2003 - Pulte Homes, Inc. (NYSE: PHM) today announced record financial results for its fourth quarter and year ended December 31, 2002. Fourth quarter income from continuing operations was a record $172 million, or $2.78 per share, an increase of 44% over prior year fourth quarter income of $120 million, or $1.99 per share. Consolidated fourth quarter revenues for the Company increased 27% to a record $2.5 billion. For the year, Pulte reported record revenues of $7.5 billion, representing a 39% increase over the prior year and the first time the Company's revenues have topped $7 billion. Commenting on the Company's financial results, Mark J. O'Brien, President and CEO said, "We are very pleased with the record-setting financial results Pulte Homes delivered in the fourth quarter and for the entire year of 2002. These results demonstrate the Company's success in growing its business, integrating the Del Webb operations and continuing to improve overall financial returns to our shareholders." "Pulte Homes enters 2003 with tremendous momentum and the opportunity to further expand its share of the homebuilding market," said O'Brien. "Based on the increase in Pulte Homes' Q4 orders and forecasts suggesting an improving economy in 2003, we continue to target year-over-year growth in earnings of 10 to 15 percent, which puts our 2003 earnings in the range of $7.85 to $8.25 per share." 1 FOURTH QUARTER RESULTS Revenues from domestic homebuilding settlements for the fourth quarter increased 24% to a record $2.4 billion. Higher revenues for the period were the result of an 8% increase in average selling price to $247,000, combined with a 14% increase in total home deliveries to 9,528 houses. The higher average selling price for the period reflects a combination of price increases and changes in the mix of homes delivered. Domestic homebuilding gross margins for the period were 20.1%, up 60 basis points over prior year reported margins of 19.5%. Prior year margins were reduced by 20 basis points reflecting purchase accounting adjustments associated with Pulte's acquisition of Del Webb in July 2001. Pre-tax income for the fourth quarter was $278.8 million, up 40% over the same period last year. Domestic homebuilding land sales for the fourth quarter generated $89.8 million in revenues and $27.4 million in gross profit, as compared to $66.0 million and $13.9 million, respectively, last year. Land sales are an important element of Pulte Homes' domestic homebuilding operations, but can fluctuate from quarter-to-quarter depending upon the timing of individual transactions. Domestic net new home orders for the quarter were 6,458, up 23% from the prior year fourth quarter orders of 5,249 homes. Pulte's ending backlog for its domestic operations was valued at $2.9 billion (10,605 homes), as compared to a value of $ 2.1 billion (8,678 homes) last year. Fourth quarter revenues for the Company's financial services operations increased 30% to $31.9 million. Higher revenues for the period were driven by a 19% increase in originations to 8,114 loans. Higher homebuilding volumes, combined with an expanded capture rate of 79.7%, helped drive increased loan production for the period. Higher loan volumes and a favorable interest rate environment helped drive fourth quarter pre-tax income of $19.1 million, an increase of 42% over the prior year pre-tax income of $13.5 million. For the fourth quarter, Pulte's International operations reported pre-tax income of $3.3 million, well ahead of the pre-tax loss of $0.3 million last year. Improved fourth quarter performance in the Company's Argentina and Puerto Rico operations was partially offset by fewer closings in Mexico caused by slower local mortgage fundings during the period. FULL YEAR RESULTS For the year ended December 31, 2002, Pulte Homes consolidated revenues were a record $7.5 billion, an increase of 39% over prior year revenues of $5.4 billion. Higher revenues reflect growth throughout the Company's operations and the inclusion of a full year of Del Webb results. For 2002, Pulte reported income from continuing operations of $444.6 million, or $7.20 per share, up 47% over prior year income of $302.4 million, or $6.01 per share. Revenues from domestic homebuilding settlements were a record $7.0 billion, an increase of 36% over prior year revenues of $5.1 billion. Revenues for the period benefited from a 26% increase in closings to 28,903 homes, combined with an 8%, or $17,000 increase in the average sales price per home to $242,000. Full-year gross margins for Pulte's domestic operations increased 30 basis points to 20.1%. Pre-tax income for the year rose to $719.0 million, an increase of 40% over the prior year. Land sales for the year generated $176.3 million in revenues and $53.0 million in gross profit. 2 Pulte's financial services operations reported pre-tax income for the year of $66.7 million, as compared to $36.9 million in 2001. The improved performance for the year reflects a 21% increase in loan originations and improved secondary marketing gains resulting from the favorable interest rate environment. Pulte's International operations reported pre-tax income of $5.1 million, reversing a prior year pre-tax loss of $2.4 million, as the Company experienced improved performance throughout its operations in Argentina and Mexico. Strong fourth quarter closings helped push Pulte Homes year end cash position to over $600 million, while its net debt to total capitalization dropped to 32% from 44% last year. For the year, Pulte Homes' return on equity increased to 18%, as the Company began realizing the benefits of its successful integration of the Webb business. "Our strong cash position at the end of the quarter provides Pulte Homes with a strong financial base and tremendous flexibility heading into 2003," said Roger Cregg, Senior Vice President and Chief Financial Officer. "Between growing our business, the opportunity to redeem the scheduled and optional retirement of over $400 million in currently outstanding debt and our share repurchase authorization, we have great opportunities to effectively utilize our existing funds and the strong cash flows expected from the business in the coming year." "With almost 11,000 homes in backlog and a well positioned land portfolio, Pulte Homes enters 2003 in a very strong competitive position," said O'Brien. We continue to expand Pulte Homes' penetration of the first time, first and second-move up and active adult segments within the markets we operate. The year ahead should also see an expansion of the Del Webb brand into a number of new markets across the country." A conference call discussing Pulte's fourth quarter results will be held today at 8.30 a.m. Eastern Time, and web cast live via Pulte.com. Interested investors can access the call via the Company's home page at www.pulte.com. CERTAIN STATEMENTS IN THIS RELEASE CONSTITUTE "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY THE FORWARD-LOOKING STATEMENTS. SUCH FACTORS INCLUDE, AMONG OTHER THINGS, (1) GENERAL ECONOMIC AND BUSINESS CONDITIONS; (2) INTEREST RATE CHANGES AND THE AVAILABILITY OF MORTGAGE FINANCING; (3) THE RELATIVE STABILITY OF DEBT AND EQUITY MARKETS; (4) COMPETITION; (5) THE AVAILABILITY AND COST OF LAND AND OTHER RAW MATERIALS USED BY THE COMPANY IN ITS HOMEBUILDING OPERATIONS; (6) THE AVAILABILITY AND COST OF INSURANCE COVERING RISKS ASSOCIATED WITH OUR BUSINESS; (7) SHORTAGES AND THE COST OF LABOR; (8) WEATHER RELATED SLOWDOWNS; (9) SLOW GROWTH INITIATIVES AND/OR LOCAL BUILDING MORATORIA; (10) GOVERNMENTAL REGULATION, INCLUDING THE INTERPRETATION OF TAX, LABOR AND ENVIRONMENTAL LAWS; (11) CHANGES IN CONSUMER CONFIDENCE AND PREFERENCES; (12) REQUIRED ACCOUNTING CHANGES; (13) TERRORIST ACTS AND OTHER ACTS OF WAR; AND (14) OTHER FACTORS OVER WHICH THE COMPANY HAS LITTLE OR NO CONTROL. Pulte Homes, Inc., (www.pulte.com) based in Bloomfield Hills, Michigan, has operations in 44 markets across the United States. Under its Del Webb (www.delwebb.com) brand, the Company is also the nation's leading builder of active adult communities for people age 55 and older. Over its history, the Company has constructed more than 300,000 homes and has been named Builder of the Year for 2002 by Professional Builder magazine. Pulte Mortgage, LLC is a nationwide lender committed to meeting the financing needs of Pulte Homes' customers by offering a wide variety of loan products and superior customer service. /Web site: http://www.pulte.com 3
Pulte Homes, Inc. Condensed Consolidated Results Of Operations Three Months Ended Year Ended December 31, December 31, -------------------------- -------------------------- 2002 2001 2002 2001 ----------- ----------- ----------- ----------- (000's omitted, except per share data) (Unaudited) CONSOLIDATED RESULTS: Revenues: Homebuilding $ 2,515,397 $ 1,980,670 $ 7,363,989 $ 5,309,829 Financial Services 31,926 24,481 106,628 77,222 Corporate 686 94 1,202 2,210 ----------- ----------- ----------- ----------- Total Revenues $ 2,548,009 $ 2,005,245 $ 7,471,819 $ 5,389,261 =========== =========== =========== =========== Pre-tax income (loss): Homebuilding $ 282,031 $ 199,096 $ 724,067 $ 512,291 Financial Services 19,139 13,490 66,723 36,948 Corporate (19,198) (18,197) (61,968) (57,452) ----------- ----------- ----------- ----------- Income from continuing operations before income taxes 281,972 194,389 728,822 491,787 Income taxes (109,928) (74,853) (284,221) (189,362) ----------- ----------- ----------- ----------- Income from continuing operations 172,044 119,536 444,601 302,425 Income (Loss) from discontinued operations (160) (95) 9,044 (1,032) ----------- ----------- ----------- ----------- Net income $ 171,884 $ 119,441 $ 453,645 $ 301,393 =========== =========== =========== =========== EARNINGS PER SHARE - ASSUMING DILUTION: Income from continuing operations $ 2.78 $ 1.99 $ 7.20 $ 6.01 Income (Loss) from discontinued operations - (.01) .15 (.02) ----------- ----------- ----------- ----------- Net income $ 2.78 $ 1.98 $ 7.35 $ 5.99 =========== =========== =========== =========== Shares used in per share calculations 61,824 60,187 61,746 50,323 =========== =========== =========== ===========
Certain 2001 classifications have been changed to conform with the 2002 presentation. 4
Pulte Homes, Inc. Condensed Consolidated Balance Sheets ($000's omitted) (Unaudited) December 31, December 31, 2002 2001 ------------ ------------ ASSETS Cash and equivalents $ 613,168 $ 72,144 Unfunded settlements 60,641 69,631 House and land inventories 4,293,597 3,833,763 Residential mortgage loans available-for-sale 588,413 431,735 Goodwill 307,693 307,693 Intangible assets 151,954 159,604 Other assets 873,244 839,706 ------------ ------------ $ 6,888,710 $ 5,714,276 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable and accrued liabilities $ 1,565,386 $ 1,155,702 Unsecured short-term borrowings - 110,000 Collateralized short-term debt, recourse solely to financial services subsidiary assets 559,621 413,675 Income taxes 90,009 35,370 Subordinated debentures and senior notes 1,913,268 1,722,864 ------------ ------------ 4,128,284 3,437,611 Total Liabilities 2,760,426 2,276,665 ------------ ------------ Shareholders' Equity $ 6,888,710 $ 5,714,276 ============ ============
Certain 2001 classifications have been changed to conform with the 2002 presentation. 5
Pulte Homes, Inc. Segment Data Three Months Ended December 31, 2002 2001 ----------- ----------- ($000's omitted) HOMEBUILDING: Pre-tax income (loss): Domestic $ 278,755 $ 199,399 International 3,276 (303) ----------- ----------- Total Homebuilding $ 282,031 $ 199,096 =========== =========== Domestic Homebuilding: Home sales (settlements) $ 2,353,696 $ 1,905,754 Land sales 89,801 66,005 ----------- ----------- Domestic Homebuilding Revenue 2,443,497 1,971,759 Home cost of sales (1,881,215) (1,533,851) Land cost of sales (62,444) (52,145) Selling, general & administrative expense (197,099) (164,855) Other expense, net (8,431) (8,847) ----------- ----------- EBIT 294,308 212,061 Interest (15,553) (12,662) ----------- ----------- Pre-tax income $ 278,755 $ 199,399 =========== =========== International Homebuilding: Home sales (settlements) $ 71,900 $ 8,911 Cost of sales (57,636) (8,031) Selling, general & administrative expense (10,243) (2,879) Other income (expense), net (161) (470) Minority Interest (1,178) - Equity in income of joint venture operations 594 2,166 ----------- ----------- Pre-tax income (loss) $ 3,276 $ (303) =========== =========== FINANCIAL SERVICES: Pre-tax income $ 19,139 $ 13,490 =========== =========== MORTGAGE ORIGINATIONS: Origination volume 8,114 6,809 =========== =========== Origination principal $ 1,349,700 $ 1,065,800 =========== =========== CORPORATE: Pre-tax loss: Net interest expense $ (9,731) $ (10,641) Other Corporate expense, net (9,467) (7,556) ----------- ----------- Total Corporate $ (19,198) $ (18,197) =========== ===========
Certain 2001 classifications have been changed to conform with the 2002 presentation. 6
Pulte Homes, Inc. Segment Data Year Ended December 31, ------------------------------ 2002 2001 ----------- ----------- ($000's omitted) HOMEBUILDING: Pre-tax income (loss): Domestic $ 719,010 $ 514,675 International 5,057 (2,384) ----------- ----------- Total Homebuilding $ 724,067 $ 512,291 =========== =========== Domestic Homebuilding: Home sales (settlements) $ 6,991,614 $ 5,145,526 Land sales 176,301 129,134 ----------- ----------- Domestic Homebuilding Revenue 7,167,915 5,274,660 Home cost of sales (5,589,465) (4,127,059) Land cost of sales (123,306) (97,941) Selling, general & administrative expense (664,469) (482,128) Other expense, net (22,968) (16,851) ----------- ----------- 767,707 550,681 EBIT Interest (48,697) (36,006) ----------- ----------- Pre-tax income $ 719,010 $ 514,675 =========== =========== International Homebuilding: Home sales (settlements) $ 196,074 $ 35,169 Cost of sales (157,056) (30,937) Selling, general & administrative expense (35,029) (11,820) Other income (expense), net (1,610) 66 Minority Interest (1,801) - Equity in income of joint venture operations 4,479 5,138 ----------- ----------- Pre-tax income (loss) $ 5,057 $ (2,384) =========== =========== FINANCIAL SERVICES: Pre-tax income $ 66,723 $ 36,948 =========== =========== MORTGAGE ORIGINATIONS: Origination volume 23,074 19,018 =========== =========== Origination principal $ 3,771,000 $ 2,937,100 =========== =========== CORPORATE: Pre-tax loss: Net interest expense $ (38,214) $ (34,261) Other Corporate expense, net (23,754) (23,191) ----------- ----------- Total Corporate $ (61,968) $ (57,452) =========== ===========
Certain 2001 classifications have been changed to conform with the 2002 presentation. 7
Pulte Homes, Inc. Business Operating Data Three Months Ended Year Ended December 31, December 31, ----------------------- ----------------------- 2002 2001 2002 2001 ---------- ---------- ---------- ---------- (000's omitted) HOMEBUILDING UNIT SETTLEMENTS - - PULTE AND AFFILIATES: Domestic 9,528 8,343 28,903 22,915 International 2,152 2,443 7,547 7,479 ---------- ---------- ---------- ---------- Total Pulte and Pulte- affiliate settlement units 11,680 10,786 36,450 30,394 ========== ========== ========== ========== HOMEBUILDING SETTLEMENT REVENUES -- PULTE AND AFFILIATES: Domestic $2,353,696 $1,905,754 $6,991,614 $5,145,526 International 76,791 69,881 236,797 215,790 ---------- ---------- ---------- ---------- Total Pulte and Pulte- affiliate revenues $2,430,487 $1,975,635 $7,228,411 $5,361,316 ========== ========== ========== ========== Domestic Homebuilding Unit settlements: Northeast 927 671 2,440 2,014 Southeast 2,585 2,757 8,271 8,126 Midwest 1,511 1,100 4,458 3,288 Central 1,734 1,472 4,588 3,982 West 2,771 2,343 9,146 5,505 ---------- ---------- ---------- ---------- 9,528 8,343 28,903 22,915 ========== ========== ========== ========== Unit net new orders: Northeast 604 378 2,738 2,035 Southeast 1,831 1,726 8,651 8,544 Midwest 987 752 4,684 3,756 Central 824 708 4,590 4,071 West 2,212 1,685 10,167 7,710 ---------- ---------- ---------- ---------- 6,458 5,249 30,830 26,116 ========== ========== ========== ========== Unit backlog: Northeast 1,129 831 Southeast 2,939 2,559 Midwest 1,601 1,375 Central 905 903 West 4,031 3,010 ---------- ---------- 10,605 8,678 ========== ========== International Homebuilding: Unit settlements: Pulte 2,122 43 6,525 221 Pulte-affiliated entities 30 2,400 1,022 7,258 ---------- ---------- ---------- ---------- 2,152 2,443 7,547 7,479 ========== ========== ========== ==========
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