BLOOMFIELD HILLS, Mich., Apr 26, 2004 (BUSINESS WIRE) -- Pulte
Homes, Inc. (NYSE:PHM)
-- First Quarter Income from Continuing Operations Increases 53%
to $132 million
-- Earnings Per Diluted Share from Continuing Operations Increase
46% to $1.02
-- First Quarter Net New Orders Increase 31% to 10,751 Homes
-- Backlog Climbs 35% to 17,664 Homes valued at $5.4 Billion
-- Company Raises Earnings Guidance for 2004
Pulte Homes, Inc. (NYSE:PHM) announced today record financial
results for its first quarter ended March 31, 2004. First quarter
income from continuing operations was a record $131.8 million, an
increase of 53% over prior year first quarter income of $86.3 million.
First quarter earnings per diluted share from continuing operations of
$1.02 represents an increase of 46% over prior year earnings per
diluted share from continuing operations of $.70. All per share
results reflect the Company's two-for-one stock split that was
effective January 2, 2004.
For the quarter, Pulte's consolidated revenues were $2.04 billion,
an increase of 31% over prior year revenues of $1.55 billion.
"With our unique customer segmentation strategy and an unmatched
land pipeline, Pulte is continuing to expand its share of the U.S.
housing market as reflected in our 31% increase in net new orders,"
said Richard J. Dugas, Jr., President and CEO of Pulte Homes. "Given
Pulte's strong market position and excellent first-quarter results, we
are raising our earnings guidance for 2004 to a range of $7.00 to
$7.25 per diluted share, up from prior guidance of $6.00 to $6.25 per
diluted share."
First quarter revenues from domestic homebuilding settlements
increased 34% to $1.9 billion. Higher revenues for the period were the
result of a 22% increase in closings to 7,039 houses, combined with a
10% increase in average selling price to $276,000. The higher average
selling price resulted from favorable changes in the mix of houses
closed combined with price increases realized during the quarter.
First quarter domestic homebuilding pretax income increased 61% to
$222.5 million, compared with prior year first quarter pretax income
of $138.4 million. Pretax income for the quarter benefited from an
approximately 180 basis point improvement in gross margins from home
sales to 21.9% reflecting price increases realized during the quarter,
a favorable product mix and initiatives to improve overall operating
efficiencies. The Company was also successful in lowering domestic
homebuilding selling, general & administrative expenses as a percent
of home settlement revenues for the quarter by approximately 100 basis
points to 10.6%.
Land sales and related gross profit in the first quarter were
$23.1 million and $3.5 million, respectively, compared with $32.9
million and $8.8 million, respectively, in the prior year. Land sales
are an important part of Pulte's overall land management strategy, but
sales can fluctuate quarter-to-quarter depending upon the timing of
individual land transactions.
Domestic net new home orders for the quarter were 10,751, up 31%
over prior year first quarter orders of 8,233 homes. Pulte's ending
backlog was valued at a record $5.4 billion (17,664 homes), compared
with a value of $3.6 billion (13,053 homes) last year.
"Our organization remains focused on the four areas we have
identified as the drivers to continued business success for Pulte
Homes: growth through segmentation, operational excellence, people
development and financial discipline," said Dugas. "Our ability to
drive sales, to raise prices and margins and to strengthen our overall
operations in large part reflects the strides we are making in each
area."
The Company's financial services operations reported first quarter
pretax income of $10.1 million, down from prior year pretax income of
$17.1 million. Loan originations for the quarter increased 18% to
6,113, but a less favorable interest rate environment and higher
overhead costs in support of better customer service combined to lower
reported pretax income. Mortgage capture rates for the quarter
increased to 86.1%, compared with 80.5% last year.
For the first quarter, Pulte's International operations reported
pretax income of $.2 million, compared with a pretax loss of $1.0
million last year. The Company continues to evaluate various long-term
strategic initiatives with regard to its International operations.
A conference call discussing Pulte's first quarter results will be
held Tuesday, April 27, 2004 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 370,000
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
Pulte Homes, Inc.
Condensed Consolidated Results
Of Operations
(000's omitted, except per share data)
(Unaudited)
Three Months Ended
March 31,
-----------------------
2004 2003
----------- -----------
CONSOLIDATED RESULTS:
Revenues:
Homebuilding $2,013,279 $1,523,439
Financial Services 24,572 27,596
Corporate 897 1,555
----------- -----------
Total Revenues $2,038,748 $1,552,590
=========== ===========
Pre-tax income (loss):
Homebuilding $222,763 $137,412
Financial Services 10,089 17,116
Corporate (20,228) (15,369)
----------- -----------
Income from continuing operations before
income taxes 212,624 139,159
Income taxes (80,787) (52,858)
----------- -----------
Income from continuing operations 131,837 86,301
Loss from discontinued operations (208) (164)
----------- -----------
Net income $131,629 $86,137
=========== ===========
EARNINGS PER SHARE - ASSUMING DILUTION:
Income from continuing operations $1.02 $.70
Loss from discontinued operations - -
----------- -----------
Net income $1.02 $.69
=========== ===========
Shares used in per share calculations 128,829 124,038
=========== ===========
All share and per share amounts have been restated to retroactively
reflect the stock split effected January 2, 2004.
Pulte Homes, Inc.
Condensed Consolidated Balance Sheets
($000's omitted)
(Unaudited)
March 31, December 31, March 31,
2004 2003 2003
----------- ------------- -----------
ASSETS
Cash and equivalents $464,414 $404,092 $479,577
Unfunded settlements 70,617 122,300 49,754
House and land inventories 6,009,141 5,528,410 4,604,208
Land, not owned, under option
agreements 136,036 73,256 -
Residential mortgage loans
available-for-sale 304,526 541,126 389,150
Goodwill 307,693 307,693 307,693
Intangible assets 141,642 143,704 149,892
Other assets 920,058 942,771 813,724
----------- ------------- -----------
$8,354,127 $8,063,352 $6,793,998
=========== ============= ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable, accrued and
other liabilities $1,861,741 $1,905,579 $1,368,811
Collateralized short-term
debt, recourse solely to
applicable subsidiary assets 255,738 479,287 343,724
Income taxes 38,284 79,391 40,523
Senior notes and subordinated
debentures 2,573,633 2,150,972 2,209,882
----------- ------------- -----------
Total Liabilities 4,729,396 4,615,229 3,962,940
Shareholders' Equity 3,624,731 3,448,123 2,831,058
----------- ------------- -----------
$8,354,127 $8,063,352 $6,793,998
=========== ============= ===========
Pulte Homes, Inc.
Segment Data
($000's omitted)
Three Months Ended
March 31,
-------------------------
2004 2003
------------- -----------
HOMEBUILDING:
Pre-tax income:
Domestic $222,525 $138,438
International 238 (1,026)
----------- -----------
Total Homebuilding $222,763 $137,412
=========== ===========
Domestic Homebuilding:
Home sales (settlements) $1,942,541 $1,447,198
Land sales 23,141 32,909
----------- -----------
Domestic Homebuilding Revenue 1,965,682 1,480,107
Home cost of sales (1,516,324) (1,155,225)
Land cost of sales (19,612) (24,060)
Selling, general
& administrative expense (205,601) (167,100)
Other income (expense), net (1,620) 4,716
----------- -----------
Pre-tax income $222,525 $138,438
=========== ===========
International Homebuilding:
Home sales (settlements) $47,597 $43,332
Cost of sales (38,630) (35,684)
Selling, general & administrative expense (8,353) (10,463)
Other income (expense), net (798) (391)
Minority Interest (397) 1,135
Equity in income of joint venture
operations 819 1,045
----------- -----------
Pre-tax income $238 $(1,026)
=========== ===========
FINANCIAL SERVICES:
Pre-tax income $10,089 $17,116
=========== ===========
CORPORATE:
Pre-tax loss:
Net interest expense $(11,635) $(9,016)
Other Corporate expense, net (8,593) (6,353)
----------- -----------
Total Corporate $(20,228) $(15,369)
=========== ===========
Pulte Homes, Inc.
Business Operating Data
($000's omitted)
Three Months Ended
March 31,
-----------------------
2004 2003
----------- -----------
HOMEBUILDING UNIT SETTLEMENTS:
Domestic 7,039 5,785
International 1,601 1,191
----------- -----------
Total Pulte settlement units 8,640 6,976
=========== ===========
HOMEBUILDING SETTLEMENT REVENUES:
Domestic $1,942,541 $1,447,198
International 47,597 43,332
----------- -----------
Total Pulte settlement revenues $1,990,138 $1,490,530
=========== ===========
Domestic Homebuilding
Unit settlements:
Northeast 519 426
Southeast 1,705 1,749
Midwest 773 842
Central 974 734
West 3,068 2,034
----------- -----------
7,039 5,785
=========== ===========
Average selling price $276 $250
=========== ===========
Unit net new orders:
Northeast 714 736
Southeast 2,769 2,263
Midwest 1,487 1,118
Central 1,576 1,185
West 4,205 2,931
----------- -----------
10,751 8,233
=========== ===========
Unit backlog:
Northeast 1,730 1,439
Southeast 4,790 3,453
Midwest 2,115 1,877
Central 1,758 1,356
West 7,271 4,928
----------- -----------
17,664 13,053
=========== ===========
Dollars in backlog $5,357,000 $3,564,000
=========== ===========
Pulte Homes, Inc.
Business Operating Data, continued
($000's omitted)
Three Months Ended
March 31,
-----------------------
2004 2003
------------ ----------
MORTGAGE ORIGINATIONS:
Origination volume 6,113 5,162
============ ==========
Origination principal $1,152,700 $867,200
============ ==========
Pulte Homes, Inc.
Supplemental Information
($000's omitted)
Three Months Ended
March 31,
--------------------
2004 2003
---------- ---------
Corporate interest expense $12,532 $10,571
Homebuilding interest expense (included in home
cost of sales) 21,612 11,409
Financial Services interest expense 1,498 1,677
---------- ---------
Total interest expense $35,642 $23,657
========== =========
Depreciation & amortization $10,160 $8,331
========== =========
Pulte Homes, Inc.
Investors - James Zeumer
248-433-4597
email: jim.zeumer@pulte.com
Media - Mark Marymee
248-433-4648
email: mark.marymee@pulte.com
