Michigan | 1-9804 | 38-2766606 |
(State or other jurisdiction | (Commission | (IRS Employer |
of incorporation) | File Number) | Identification No.) |
PULTEGROUP, INC. | |||||
Date: | January 30, 2018 | By: | /s/ Todd N. Sheldon | ||
Name: | Todd N. Sheldon | ||||
Title: | Executive Vice President, General Counsel and Corporate Secretary | ||||
FOR IMMEDIATE RELEASE | Company Contact |
Investors: Jim Zeumer | |
(404) 978-6434 | |
Email: jim.zeumer@pultegroup.com |
• | Reported Net Income of $0.26 Per Share Inclusive of Income Tax and Land Charges Partially Offset By Favorable Insurance Adjustments |
• | Adjusted Net Income of $0.85 Per Share Increased 27% Over Prior Year Q4 Adjusted Net Income of $0.67 Per Share |
• | Home Sale Revenues Increased 12% to $2.7 Billion |
• | Value of Net New Orders Increased 22% to $2.0 Billion; Net New Orders Gained 14% to 4,805 Homes |
• | Backlog Value Increased 35% to $4.0 Billion; Unit Backlog Increased 21% to 8,996 Homes |
• | Company Repurchased 7.6 Million Shares of Stock During the Quarter for $251 Million |
• | Company Announces $500 Million Increase to Share Repurchase Plan |
PulteGroup, Inc. Consolidated Results of Operations ($000's omitted, except per share data) (Unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues: | |||||||||||||||
Homebuilding | |||||||||||||||
Home sale revenues | $ | 2,717,031 | $ | 2,423,472 | $ | 8,323,984 | $ | 7,451,315 | |||||||
Land sale revenues | 20,360 | 15,431 | 57,106 | 36,035 | |||||||||||
2,737,391 | 2,438,903 | 8,381,090 | 7,487,350 | ||||||||||||
Financial Services | 56,166 | 54,175 | 192,160 | 181,126 | |||||||||||
Total revenues | 2,793,557 | 2,493,078 | 8,573,250 | 7,668,476 | |||||||||||
Homebuilding Cost of Revenues: | |||||||||||||||
Home sale cost of revenues | (2,128,931 | ) | (1,821,672 | ) | (6,461,152 | ) | (5,587,974 | ) | |||||||
Land sale cost of revenues | (18,500 | ) | (14,256 | ) | (134,449 | ) | (32,115 | ) | |||||||
(2,147,431 | ) | (1,835,928 | ) | (6,595,601 | ) | (5,620,089 | ) | ||||||||
Financial Services expenses | (33,139 | ) | (29,370 | ) | (119,289 | ) | (108,573 | ) | |||||||
Selling, general, and administrative expenses | (201,607 | ) | (207,647 | ) | (891,581 | ) | (957,150 | ) | |||||||
Other expense, net | (2,613 | ) | (6,412 | ) | (27,951 | ) | (48,814 | ) | |||||||
Income before income taxes | 408,767 | 413,721 | 938,828 | 933,850 | |||||||||||
Income tax expense | (331,352 | ) | (140,549 | ) | (491,607 | ) | (331,147 | ) | |||||||
Net income | $ | 77,415 | $ | 273,172 | $ | 447,221 | $ | 602,703 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 0.26 | $ | 0.83 | $ | 1.45 | $ | 1.76 | |||||||
Diluted | $ | 0.26 | $ | 0.83 | $ | 1.44 | $ | 1.75 | |||||||
Cash dividends declared | $ | 0.09 | $ | 0.09 | $ | 0.36 | $ | 0.36 | |||||||
Number of shares used in calculation: | |||||||||||||||
Basic | 292,174 | 325,975 | 305,089 | 339,747 | |||||||||||
Effect of dilutive securities | 1,318 | 1,834 | 1,725 | 2,376 | |||||||||||
Diluted | 293,492 | 327,809 | 306,814 | 342,123 |
PulteGroup, Inc. Condensed Consolidated Balance Sheets ($000's omitted) (Unaudited) | |||||||
December 31, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Cash and equivalents | $ | 272,683 | $ | 698,882 | |||
Restricted cash | 33,485 | 24,366 | |||||
Total cash, cash equivalents, and restricted cash | 306,168 | 723,248 | |||||
House and land inventory | 7,147,130 | 6,770,655 | |||||
Land held for sale | 68,384 | 31,728 | |||||
Residential mortgage loans available-for-sale | 570,600 | 539,496 | |||||
Investments in unconsolidated entities | 62,957 | 51,447 | |||||
Other assets | 745,123 | 857,426 | |||||
Intangible assets | 140,992 | 154,792 | |||||
Deferred tax assets, net | 645,295 | 1,049,408 | |||||
$ | 9,686,649 | $ | 10,178,200 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Liabilities: | |||||||
Accounts payable | $ | 393,815 | $ | 405,455 | |||
Customer deposits | 250,779 | 187,891 | |||||
Accrued and other liabilities | 1,356,333 | 1,429,712 | |||||
Income tax liabilities | 86,925 | 34,860 | |||||
Financial Services debt | 437,804 | 331,621 | |||||
Notes payable | 3,006,967 | 3,129,298 | |||||
Total liabilities | 5,532,623 | 5,518,837 | |||||
Shareholders' equity | 4,154,026 | 4,659,363 | |||||
$ | 9,686,649 | $ | 10,178,200 |
PulteGroup, Inc. Consolidated Statements of Cash Flows ($000's omitted) (Unaudited) | |||||||
Year Ended | |||||||
December 31, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 447,221 | $ | 602,703 | |||
Adjustments to reconcile net income to net cash from operating activities: | |||||||
Deferred income tax expense | 422,307 | 334,787 | |||||
Land-related charges | 191,913 | 19,357 | |||||
Depreciation and amortization | 50,998 | 54,007 | |||||
Share-based compensation expense | 33,683 | 22,228 | |||||
Loss on debt retirements | — | 657 | |||||
Other, net | (1,789 | ) | 1,614 | ||||
Increase (decrease) in cash due to: | |||||||
Inventories | (569,030 | ) | (897,092 | ) | |||
Residential mortgage loans available-for-sale | (33,009 | ) | (99,527 | ) | |||
Other assets | 55,099 | (45,721 | ) | ||||
Accounts payable, accrued and other liabilities | 65,684 | 75,257 | |||||
Net cash provided by (used in) operating activities | 663,077 | 68,270 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (32,051 | ) | (39,295 | ) | |||
Investment in unconsolidated subsidiaries | (23,037 | ) | (14,539 | ) | |||
Cash used for business acquisition | — | (430,458 | ) | ||||
Other investing activities, net | 4,846 | 13,100 | |||||
Net cash used in investing activities | (50,242 | ) | (471,192 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from debt issuance | — | 1,995,937 | |||||
Repayments of debt | (134,747 | ) | (986,919 | ) | |||
Borrowings under revolving credit facility | 2,720,000 | 619,000 | |||||
Repayments under revolving credit facility | (2,720,000 | ) | (619,000 | ) | |||
Financial Services borrowings, net | 106,183 | 63,744 | |||||
Stock option exercises | 27,720 | 5,845 | |||||
Share repurchases | (916,323 | ) | (603,206 | ) | |||
Dividends paid | (112,748 | ) | (124,666 | ) | |||
Net cash provided by (used in) financing activities | (1,029,915 | ) | 350,735 | ||||
Net increase (decrease) | (417,080 | ) | (52,187 | ) | |||
Cash, cash equivalents, and restricted cash at beginning of period | 723,248 | 775,435 | |||||
Cash, cash equivalents, and restricted cash at end of period | $ | 306,168 | $ | 723,248 | |||
Supplemental Cash Flow Information: | |||||||
Interest paid (capitalized), net | $ | (942 | ) | $ | (26,538 | ) | |
Income taxes paid (refunded), net | $ | 14,875 | $ | 2,743 |
PulteGroup, Inc. Segment Data ($000's omitted) (Unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
HOMEBUILDING: | |||||||||||||||
Home sale revenues | $ | 2,717,031 | $ | 2,423,472 | $ | 8,323,984 | $ | 7,451,315 | |||||||
Land sale revenues | 20,360 | 15,431 | 57,106 | 36,035 | |||||||||||
Total Homebuilding revenues | 2,737,391 | 2,438,903 | 8,381,090 | 7,487,350 | |||||||||||
Home sale cost of revenues | (2,128,931 | ) | (1,821,672 | ) | (6,461,152 | ) | (5,587,974 | ) | |||||||
Land sale cost of revenues | (18,500 | ) | (14,256 | ) | (134,449 | ) | (32,115 | ) | |||||||
Selling, general, and administrative expenses | (201,607 | ) | (207,647 | ) | (891,581 | ) | (957,150 | ) | |||||||
Other income (expense), net | (2,845 | ) | (6,604 | ) | (28,576 | ) | (49,345 | ) | |||||||
Income before income taxes | $ | 385,508 | $ | 388,724 | $ | 865,332 | $ | 860,766 | |||||||
FINANCIAL SERVICES: | |||||||||||||||
Income before income taxes | $ | 23,259 | $ | 24,997 | $ | 73,496 | $ | 73,084 | |||||||
CONSOLIDATED: | |||||||||||||||
Income before income taxes | $ | 408,767 | $ | 413,721 | $ | 938,828 | $ | 933,850 |
PulteGroup, Inc. Segment Data, continued ($000's omitted) (Unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Home sale revenues | $ | 2,717,031 | $ | 2,423,472 | $ | 8,323,984 | $ | 7,451,315 | |||||||
Closings - units | |||||||||||||||
Northeast | 489 | 529 | 1,335 | 1,418 | |||||||||||
Southeast | 1,137 | 1,102 | 3,888 | 3,901 | |||||||||||
Florida | 1,222 | 1,093 | 3,861 | 3,441 | |||||||||||
Midwest | 1,120 | 1,142 | 3,696 | 3,418 | |||||||||||
Texas | 1,298 | 1,080 | 4,107 | 3,726 | |||||||||||
West | 1,366 | 1,251 | 4,165 | 4,047 | |||||||||||
6,632 | 6,197 | 21,052 | 19,951 | ||||||||||||
Average selling price | $ | 410 | $ | 391 | $ | 395 | $ | 373 | |||||||
Net new orders - units | |||||||||||||||
Northeast | 357 | 306 | 1,460 | 1,361 | |||||||||||
Southeast | 919 | 804 | 4,233 | 3,810 | |||||||||||
Florida | 1,000 | 705 | 4,121 | 3,585 | |||||||||||
Midwest | 757 | 766 | 3,876 | 3,636 | |||||||||||
Texas | 840 | 784 | 4,121 | 3,793 | |||||||||||
West | 932 | 837 | 4,815 | 4,141 | |||||||||||
4,805 | 4,202 | 22,626 | 20,326 | ||||||||||||
Net new orders - dollars | $ | 2,030,223 | $ | 1,666,066 | $ | 9,361,534 | $ | 7,753,399 | |||||||
December 31, | |||||||||||||||
2017 | 2016 | ||||||||||||||
Unit backlog | |||||||||||||||
Northeast | 512 | 387 | |||||||||||||
Southeast | 1,716 | 1,371 | |||||||||||||
Florida | 1,678 | 1,418 | |||||||||||||
Midwest | 1,487 | 1,307 | |||||||||||||
Texas | 1,426 | 1,412 | |||||||||||||
West | 2,177 | 1,527 | |||||||||||||
8,996 | 7,422 | ||||||||||||||
Dollars in backlog | $ | 3,979,064 | $ | 2,941,512 | |||||||||||
PulteGroup, Inc. Segment Data, continued ($000's omitted) (Unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
MORTGAGE ORIGINATIONS: | |||||||||||||||
Origination volume | 4,521 | 4,250 | 14,152 | 13,373 | |||||||||||
Origination principal | $ | 1,348,933 | $ | 1,225,568 | $ | 4,127,084 | $ | 3,706,745 | |||||||
Capture rate | 80.6 | % | 81.8 | % | 79.9 | % | 81.2 | % |
Supplemental Data ($000's omitted) (Unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest in inventory, beginning of period | $ | 222,545 | $ | 176,661 | $ | 186,097 | $ | 149,498 | |||||||
Interest capitalized | 45,771 | 44,961 | 181,719 | 160,506 | |||||||||||
Interest expensed | (41,705 | ) | (35,525 | ) | (141,205 | ) | (123,907 | ) | |||||||
Interest in inventory, end of period | $ | 226,611 | $ | 186,097 | $ | 226,611 | $ | 186,097 |
Three Months Ended | Three Months Ended | ||||||||||||||||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
As Reported | Adjustments (a) | Adjusted | As Reported | Adjustments (b) | Adjusted | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Homebuilding | |||||||||||||||||||||||
Home sale revenues | $ | 2,717,031 | $ | — | $ | 2,717,031 | $ | 2,423,472 | $ | — | $ | 2,423,472 | |||||||||||
Land sale revenues | 20,360 | — | 20,360 | 15,431 | — | 15,431 | |||||||||||||||||
2,737,391 | — | 2,737,391 | 2,438,903 | — | 2,438,903 | ||||||||||||||||||
Financial Services | 56,166 | — | 56,166 | 54,175 | — | 54,175 | |||||||||||||||||
Total revenues | 2,793,557 | — | 2,793,557 | 2,493,078 | — | 2,493,078 | |||||||||||||||||
Homebuilding Cost of Revenues: | |||||||||||||||||||||||
Home sale cost of revenues | (2,128,931 | ) | 57,466 | (2,071,465 | ) | (1,821,672 | ) | 1,074 | (1,820,598 | ) | |||||||||||||
Land sale cost of revenues | (18,500 | ) | — | (18,500 | ) | (14,256 | ) | — | (14,256 | ) | |||||||||||||
(2,147,431 | ) | 57,466 | (2,089,965 | ) | (1,835,928 | ) | 1,074 | (1,834,854 | ) | ||||||||||||||
Financial Services expenses | (33,139 | ) | — | (33,139 | ) | (29,370 | ) | — | (29,370 | ) | |||||||||||||
Selling, general, and administrative expenses (SG&A) | (201,607 | ) | (66,009 | ) | (267,616 | ) | (207,647 | ) | (55,243 | ) | (262,890 | ) | |||||||||||
Other expense, net | (2,613 | ) | — | (2,613 | ) | (6,412 | ) | — | (6,412 | ) | |||||||||||||
Income before income taxes | 408,767 | (8,543 | ) | 400,224 | 413,721 | (54,169 | ) | 359,552 | |||||||||||||||
Income tax expense | (331,352 | ) | 183,871 | (147,481 | ) | (140,549 | ) | 3,865 | (136,684 | ) | |||||||||||||
Net income | $ | 77,415 | $ | 175,328 | $ | 252,743 | $ | 273,172 | $ | (50,304 | ) | $ | 222,868 | ||||||||||
Earnings per share (diluted) | $ | 0.26 | $ | 0.85 | $ | 0.83 | $ | 0.67 | |||||||||||||||
Home sale gross margin | 21.6 | % | 23.8 | % | 24.8 | % | 24.9 | % | |||||||||||||||
SG&A as a percentage of sales | 7.4 | % | 9.8 | % | 8.6 | % | 10.8 | % | |||||||||||||||
Operating margin | 14.2 | % | 13.9 | % | 16.3 | % | 14.0 | % | |||||||||||||||
Effective tax rate | 81.1 | % | 36.8 | % | 34.0 | % | 38.0 | % |
(a) | Includes land inventory impairments, an insurance-related benefit, and income tax charges primarily related to the revaluation of deferred tax assets resulting from the Tax Cuts and Jobs Act enacted in December 2017 |
(b) | Includes land inventory impairments, an insurance-related benefit, and net income tax benefits primarily related to energy efficient home credits and a deferred tax benefit related to a legal entity restructuring |
Twelve Months Ended | Twelve Months Ended | ||||||||||||||||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
As Reported | Adjustments (a) | Adjusted | As Reported | Adjustments (b) | Adjusted | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Homebuilding | |||||||||||||||||||||||
Home sale revenues | $ | 8,323,984 | $ | — | $ | 8,323,984 | $ | 7,451,315 | $ | — | $ | 7,451,315 | |||||||||||
Land sale revenues | 57,106 | — | 57,106 | 36,035 | — | 36,035 | |||||||||||||||||
8,381,090 | — | 8,381,090 | 7,487,350 | — | 7,487,350 | ||||||||||||||||||
Financial Services | 192,160 | — | 192,160 | 181,126 | — | 181,126 | |||||||||||||||||
Total revenues | 8,573,250 | — | 8,573,250 | 7,668,476 | — | 7,668,476 | |||||||||||||||||
Homebuilding Cost of Revenues: | |||||||||||||||||||||||
Home sale cost of revenues | (6,461,152 | ) | 101,058 | (6,360,094 | ) | (5,587,974 | ) | 1,074 | (5,586,900 | ) | |||||||||||||
Land sale cost of revenues | (134,449 | ) | 81,006 | (53,443 | ) | (32,115 | ) | — | (32,115 | ) | |||||||||||||
(6,595,601 | ) | 182,064 | (6,413,537 | ) | (5,620,089 | ) | 1,074 | (5,619,015 | ) | ||||||||||||||
Financial Services expenses | (119,289 | ) | — | (119,289 | ) | (108,573 | ) | — | (108,573 | ) | |||||||||||||
Selling, general, and administrative expenses (SG&A) | (891,581 | ) | (65,496 | ) | (957,077 | ) | (957,150 | ) | (45,213 | ) | (1,002,363 | ) | |||||||||||
Other expense, net | (27,951 | ) | 8,017 | (19,934 | ) | (48,814 | ) | 26,643 | (22,171 | ) | |||||||||||||
Income before income taxes | 938,828 | 124,585 | 1,063,413 | 933,850 | (17,496 | ) | 916,354 | ||||||||||||||||
Income tax expense | (491,607 | ) | 107,661 | (383,946 | ) | (331,147 | ) | (17,596 | ) | (348,743 | ) | ||||||||||||
Net income | $ | 447,221 | $ | 232,246 | $ | 679,467 | $ | 602,703 | $ | (35,092 | ) | $ | 567,611 | ||||||||||
Earnings per share (diluted) | $ | 1.44 | $ | 2.19 | $ | 1.75 | $ | 1.66 | |||||||||||||||
Home sale gross margin | 22.4 | % | 23.6 | % | 25.0 | % | 25.0 | % | |||||||||||||||
SG&A as a percentage of sales | 10.7 | % | 11.5 | % | 12.8 | % | 13.5 | % | |||||||||||||||
Operating margin | 11.7 | % | 12.1 | % | 12.2 | % | 11.6 | % | |||||||||||||||
Effective tax rate | 52.4 | % | 36.1 | % | 35.5 | % | 38.1 | % |
(a) | Includes land inventory impairments, net realizable value adjustments on land held for sale, net insurance-related benefits, an impairment of an investment in an unconsolidated subsidiary, and income tax charges primarily related to the revaluation of deferred tax assets resulting from the Tax Cuts and Jobs Act enacted in December 2017 |
(b) | Includes land inventory impairments, net insurance-related benefits, restructuring costs associated with a plan to reduce overhead expenses, costs relating to shareholder activities, a charge resulting from the settlement of a disputed land transaction, and net income tax benefits primarily related to energy efficient home credits and a deferred tax benefit related to a legal entity restructuring |