Michigan | 1-9804 | 38-2766606 |
(State or other jurisdiction | (Commission | (IRS Employer |
of incorporation) | File Number) | Identification No.) |
PULTEGROUP, INC. | |||||
Date: | January 28, 2016 | By: | /s/ Steven M. Cook | ||
Name: | Steven M. Cook | ||||
Title: | Senior Vice President, | ||||
General Counsel | |||||
and Secretary | |||||
FOR IMMEDIATE RELEASE | Company Contact |
Investors: Jim Zeumer | |
(404) 978-6434 | |
Email: jim.zeumer@pultegroup.com |
• | Q4 Net Income of $0.64 Per Share Includes $0.07 Per Share of Benefit from Insurance and Mortgage Reserve Reversals; Prior Year Q4 Net Income of $0.58 Per Share Includes $0.16 Per Share of Tax and Insurance Benefits |
• | Net New Orders Increased 13% to 3,659 Homes Driven by 9% Gain in Absorption Pace |
• | Value of Net New Orders Increased 24% to $1.4 Billion |
• | Home Sale Gross Margin of 23.5%, Up 40 Basis Points Over Prior Year |
• | Home Sale Revenues Increased 12% to $2.0 Billion |
• | Closings Increased 7% to 5,662 Homes; Average Sales Price Up 6% to $353,000 |
• | Q4 Backlog Value Up 26% Over Prior Year to $2.5 Billion; Unit Backlog Increased 15% to 6,731 Homes |
• | PulteGroup Ended the Quarter with $775 Million of Cash and a Debt-to-Capital Ratio of 30% |
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 |