EXHIBIT 99.1 |
FOR IMMEDIATE RELEASE | Company Contacts | |
Investors: James Zeumer | ||
(248) 433-4597 | ||
email:jim.zeumer@pulte.com | ||
Media: Mark Marymee | ||
(248) 433-4648 | ||
email:mark.marymee@pulte.com |
PULTE HOMES ANNOUNCES RECORD FIRST QUARTER RESULTS
• | 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 |
Bloomfield Hills, MI, April 26, 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%
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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
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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 byProfessional 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.
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Pulte Homes, Inc.
($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 | |||||||
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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 | ) | ||
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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 | ||||
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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 | ||||
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