EXHIBIT 99
Investor Relations Contact:
James Zeumer
[PULTE HOMES LOGO] Pulte Homes, Inc.
Vice President
FOR IMMEDIATE RELEASE (248) 433-4597
Media Relations Contact:
Valerie Dolenga
Pulte Homes, Inc.
Corporate Communications
(248) 433-4633
PULTE HOMES ANNOUNCES 51% INCREASE IN NET INCOME; EARNINGS FROM
CONTINUING OPERATIONS INCREASE TO A RECORD $1.45 PER SHARE
SECOND QUARTER SIGNUPS CLIMB 60%; BACKLOG REACHES RECORD $3.3 BILLION
(12,950 UNITS)
BLOOMFIELD HILLS, MI, JULY 23, 2002 - Pulte Homes (NYSE: PHM) announced today
record financial results for its second quarter and six months ended June 30,
2002. For the quarter, net income from continuing operations increased 49% to a
record $90.4 million, or $1.45 per share, as compared to $60.6 million, or $1.40
per share, last year. Shares used in calculating second-quarter EPS increased
44% over last year to 62.4 million as a result of the Company's merger with Del
Webb effective July 2001.
Consolidated revenues for the quarter were $1.7 billion, an increase of
59% over prior year revenues of $1.1 billion. Higher revenues for the period
reflect expanded business resulting from the Company's merger with Del Webb, as
well as gains throughout Pulte Homes' operation.
"Our second quarter and six-month results have Pulte Homes' operating
and financial performance on track to deliver another record year," said Mark J.
O'Brien, President and CEO. "Even more compelling is the record signups achieved
during the quarter, which demonstrates the positive impact of the Company's
acquisition strategy and the continued strength in demand for new homes. As the
economic recovery continues to take hold, it is certainly reasonable to expect
this demand will remain and could grow stronger as employment and consumer
confidence rise."
Domestic homebuilding revenues increased 58% to a second-quarter
record $1.6 billion. Higher revenues for the quarter resulted from a 9% increase
in average selling price to $239,000, combined with a 45% increase in home
closings to 6,593 units. The year-over-year increase in second quarter closings
and average sales price primarily reflects the inclusion of Del Webb units, as
well as a favorable product mix.
Second quarter domestic homebuilding gross profit increased 56% to
$313.7 million, as compared to prior year gross profit of $200.8 million.
Reported domestic homebuilding gross margins were 19.9%, as compared to 20.1%
last year.
Land sales during the quarter generated $34.1 million in revenues and
$10.6 million in pre-tax income, as compared to $34.7 million and $12.4 million,
respectively, last year. According to
the Company, 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 8,279, up 60% over
prior year second-quarter orders of 5,178 homes. On a pro forma basis, assuming
the inclusion of Del Webb's units last year, Pulte Homes' signups increased 17%
for the quarter reflecting strong demand throughout its operations. Pulte's
backlog as of June 30, 2002, was valued at $3.3 billion (12,950 homes), as
compared to a value of $2.0 billion (8,791 homes) last year.
"Customer traffic to our communities was positive throughout the
quarter, with strong buyer interest across our markets and within the
first-time, first and second move-up and active adult buyer segments we serve,"
said O'Brien.
The Company's financial services operations reported first quarter
pre-tax income of $16.2 million, up 116% over prior year pre-tax income of $7.5
million. The improvement in second quarter financial results reflects a 24%
increase in loan originations resulting from inclusion of Del Webb business, a
favorable interest rate environment and a higher capture rate of 76.7% as
compared to 73.1% last year.
For the second quarter, Pulte's International operations reported
pre-tax income of $1.9 million, as compared to a pre-tax loss of $1.5 million
for the comparable period last year. Gains for the quarter primarily reflect
improved performance from the Company's Mexico operations.
OTHER SECOND QUARTER HIGHLIGHTS
During the quarter, it was announced that Richard J. Dugas has been
named as the Company's new Chief Operating Officer. Mr. Dugas filled a position
left vacant when Mark J. O'Brien assumed the role of President and Chief
Executive Officer at the end of 2001. Mr. Dugas will oversee all domestic
homebuilding operations and provide leadership to the Area Presidents under the
Company's realigned organizational structure.
Also during the quarter, Pulte Homes completed a public offering of
$300 million principal amount of senior notes due 2032, with a coupon rate of
7.875%. The 30-year maturity of these notes is believed to be a first for the
homebuilding industry.
The Company also announced the introduction of the Del Webb brand into
the Northeast market. The newest communities, Great Island by Del Webb in
Plymouth, Massachusetts, and Somerset Run by Del Webb in Franklin Township, New
Jersey, have both met with very strong buyer interest. Community development is
already underway with home deliveries beginning in 2003.
SIX MONTH RESULTS
For the six months ended June 30, 2001, Pulte Homes' net income from
continuing operations increased 59% to $159.0 million, or $2.57 per share, as
compared with prior year net income of $99.7 million, or $2.31 per share. Shares
used in calculating six-month EPS increased 43% to 61.9 million as a result of
the Company's merger with Del Webb effective July 2001.
Consolidated revenues for the period were $3.1 billion, up from $1.9
billion for the first six months of last year.
Pulte Homes' domestic homebuilding operations reported total revenues
for the period of $2.9 billion, up 59% over the prior year. Higher revenues for
the period resulted from a 10% increase in average selling price to $239,000,
combined with a 45% increase in the number of homes closed. The increase in
average selling price and unit volumes reflect the inclusion of Del Webb
operations and favorable building conditions during the period.
Gross margins for the domestic homebuilding operations were comparable
to last year at 20.0%, as pre-tax income increased 52% to $260.4 million.
For the first six months, Pulte's financial services operations
reported pre-tax income of $28.4 million, up significantly from prior year
pre-tax income of $14.2 million. The improvement was driven by a 27% increase in
loan originations resulting from inclusion of Del Webb business, a favorable
interest rate environment and a higher capture rate of 76.0% as compared to
71.8% last year.
Pulte's International operations reported net income for the first six
months of $1.4 million, as compared to a pre-tax loss of $.3 million last year.
The improved financial performance was driven by gains in the Company's Mexico
operations.
"Pulte Homes results through the first six months of 2002 are on plan,
and put the Company in an excellent position to deliver earnings at the high end
of our guidance range of $6.75 to $7.00 per share. Our recent sales pace
suggests that buyer demand remains strong and that we have the opportunity to
deliver increased year-over-year signups for the back half of the year. Such
results would provide Pulte Homes with a solid backlog and great momentum
heading into 2003," added O'Brien.
A conference call discussing Pulte Homes' second 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.
AS A CAUTIONARY NOTE TO INVESTORS, EXCEPT FOR HISTORICAL INFORMATION CONTAINED
HEREIN, CERTAIN MATTERS DISCUSSED IN THIS PRESS RELEASE ARE "FORWARD LOOKING
STATEMENTS" WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995. SUCH MATTERS INVOLVE RISKS AND UNCERTAINTIES, INCLUDING, CHANGES IN
ECONOMIC CONDITIONS AND INTEREST RATES, INCREASES IN RAW MATERIAL AND LABOR
COSTS, WEATHER CONDITIONS, AND GENERAL COMPETITIVE FACTORS, THAT MAY CAUSE
ACTUAL RESULTS TO DIFFER MATERIALLY.
ABOUT PULTE HOMES
Pulte Homes, Inc., (www.pulte.com) based in Bloomfield Hills, Michigan,
has operations in more than 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 Corporation 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
------------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
------------------------------------- -------------------------------------
(000's omitted, except per share data)
(Unaudited)
CONSOLIDATED RESULTS:
Revenues:
Homebuilding $ 1,661,670 $ 1,040,685 $ 3,017,275 $ 1,865,732
Financial Services 23,842 17,132 46,866 31,843
Corporate 51 905 163 1,622
----------- ----------- ----------- -----------
Total Revenues $ 1,685,563 $ 1,058,722 $ 3,064,304 $ 1,899,197
=========== =========== =========== ===========
Pre-tax income (loss):
Homebuilding $ 146,522 $ 104,489 $ 261,856 $ 170,967
Financial Services 16,162 7,495 28,416 14,167
Corporate (14,462) (13,417) (29,516) (22,959)
----------- ----------- ----------- -----------
Income from continuing
operations before income taxes 148,222 98,567 260,756 162,175
Income taxes (57,814) (37,948) (101,708) (62,437)
----------- ----------- ----------- -----------
90,408 60,619 159,048 99,738
Income from continuing operations
Loss from discontinued operations (205) (825) (733) (573)
----------- ----------- ----------- -----------
Net income $ 90,203 $ 59,794 $ 158,315 $ 99,165
=========== =========== =========== ===========
EARNINGS PER SHARE -
ASSUMING DILUTION:
Income from continuing operations $ 1.45 $ 1.40 $ 2.57 $ 2.31
Loss from discontinued operations -- (.02) (.01) (.01)
----------- ----------- ----------- -----------
Net income $ 1.45 $ 1.38 $ 2.56 $ 2.30
=========== =========== =========== ===========
Shares used in per share calculations 62,359 43,365 61,933 43,191
=========== =========== =========== ===========
Certain 2001 classifications have been changed to conform with the 2002
presentation.
Pulte Homes, Inc.
Condensed Consolidated Balance Sheets
($000's omitted)
(Unaudited)
------------------------------------------------------------
June 30, December 31, June 30,
2002 2001 2001
----------------- -------------------- --------------
ASSETS
Cash and equivalents $ 212,767 $ 72,144 $ 101,805
Unfunded settlements 40,109 69,631 47,604
House and land inventories 4,244,918 3,833,763 2,297,731
Residential mortgage loans
available-for-sale 286,484 431,735 203,622
Goodwill 307,693 307,693 27,066
Intangible Assets 155,529 159,604 --
Other assets 859,663 839,706 549,737
---------- ---------- ----------
$6,107,163 $5,714,276 $3,227,565
========== ========== ==========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Accounts payable and accrued liabilities $1,328,893 $1,155,702 $ 770,558
Unsecured short-term
borrowings -- 110,000 --
Collateralized short-term debt, recourse solely
to applicable subsidiary assets 272,925 413,675 196,186
Income taxes 88,082 35,370 36,104
Subordinated debentures and senior notes 1,949,265 1,722,864 865,347
---------- ---------- ----------
Total Liabilities 3,639,165 3,437,611 1,868,195
Shareholders' Equity 2,467,998 2,276,665 1,359,370
---------- ---------- ----------
$6,107,163 $5,714,276 $3,227,565
========== ========== ==========
Certain 2001 classifications have been changed to conform with the 2002
presentation.
Pulte Homes, Inc.
Segment Data
Three Months Ended
June 30,
------------------------------------------------
2002 2001
---------------- ----------------
($000's omitted)
HOMEBUILDING:
Pre-tax income (loss):
Domestic $ 144,577 $ 105,948
International 1,945 (1,459)
----------- -----------
Total Homebuilding $ 146,522 $ 104,489
=========== ===========
Domestic Homebuilding:
Home sales (settlements) $ 1,576,285 $ 997,712
Land sales 34,121 34,700
----------- -----------
Domestic Homebuilding
Revenue 1,610,406 1,032,412
Home cost of sales (1,262,544) (796,877)
Land cost of sales (23,567) (22,301)
Selling, general
& administrative
expense (163,086) (99,596)
Other income (expense), net (5,265) 606
----------- -----------
155,944 114,244
EBIT
Interest (11,367) (8,296)
----------- -----------
Pre-tax income $ 144,577 $ 105,948
=========== ===========
International Homebuilding:
Home sales (settlements) $ 51,264 $ 8,273
Cost of sales (40,079) (7,021)
Selling, general
& administrative
expense (9,352) (2,654)
Other expense, net (82) (82)
Minority Interest (776) --
Equity in income of joint venture
operations 970 25
----------- -----------
Pre-tax income (loss) $ 1,945 $ (1,459)
=========== ===========
FINANCIAL SERVICES:
Pre-tax income $ 16,162 $ 7,495
=========== ===========
MORTGAGE
ORIGINATIONS:
Origination volume 4,994 4,013
=========== ===========
Origination
principal $ 804,400 $ 613,700
=========== ===========
CORPORATE:
Pre-tax loss:
Net interest expense $ (9,770) $ (8,034)
Other Corporate
expense, net (4,692) (5,383)
----------- -----------
Total Corporate $ (14,462) $ (13,417)
=========== ===========
Certain 2001 classifications have been changed to conform with the 2002
presentation.
Pulte Homes, Inc.
Segment Data
Six Months Ended
June 30,
-------------------------------------------
2002 2001
------------- -------------
($000's omitted)
HOMEBUILDING:
Pre-tax income (loss):
Domestic $ 260,428 $ 171,293
International 1,428 (326)
----------- -----------
Total Homebuilding $ 261,856 $ 170,967
=========== ===========
Domestic Homebuilding:
Home sales (settlements) $ 2,885,873 $ 1,803,508
Land sales 57,769 42,427
----------- -----------
Domestic Homebuilding Revenue 2,943,642 1,845,935
Home cost of sales (2,309,469) (1,442,647)
Land cost of sales (38,799) (29,022)
Selling, general
& administrative
expense (305,881) (185,798)
Other expense (9,175) (2,939)
----------- -----------
280,318 185,529
EBIT
Interest (19,890) (14,236)
----------- -----------
Pre-tax income $ 260,428 $ 171,293
=========== ===========
International Homebuilding:
Home sales (settlements) $ 73,633 $ 19,797
Cost of sales (57,908) (17,254)
Selling, general
& administrative
expense (16,355) (5,254)
Other income (expense), net (858) 360
Minority Interest (396) --
Equity in income of joint venture
operations 3,312 2,025
----------- -----------
Pre-tax income (loss) $ 1,428 $ (326)
=========== ===========
FINANCIAL SERVICES:
Pre-tax income $ 28,416 $ 14,167
=========== ===========
MORTGAGE
ORIGINATIONS:
Origination volume 9,220 7,271
=========== ===========
Origination
principal $ 1,476,200 $ 1,102,800
=========== ===========
CORPORATE:
Pre-tax loss:
Net interest expense $ (19,212) $ (13,683)
Other Corporate
expense, net (10,304) (9,276)
----------- -----------
Total Corporate ($ 29,516) $ (22,959)
=========== ===========
Certain 2001 classifications have been changed to conform with the 2002
presentation.
Pulte Homes, Inc.
Business Operating Data
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------------- -------------------------------------
2002 2001 2002 2001
---------------- ---------------- ---------------- ----------------
(000's omitted)
HOMEBUILDING UNIT
SETTLEMENTS - PULTE AND
AFFILIATES:
Domestic 6,593 4,551 12,095 8,319
International 1,775 1,644 3,417 3,418
---------------- ---------------- ---------------- ----------------
Total Pulte and Pulte-affiliate
settlement units 8,368 6,195 15,512 11,737
================ ================ ================ ================
HOMEBUILDING REVENUES - PULTE AND
AFFILIATES:
Domestic $1,576,285 $997,712 $2,885,873 $1,803,508
International 57,919 47,575 104,741 97,507
---------------- ---------------- ---------------- ----------------
Total Pulte and Pulte-affiliate
revenues $1,634,204 $1,045,287 $2,990,614 $1,901,015
================ ================ ================ ================
Domestic Homebuilding
Unit settlements:
Northeast 504 451 920 844
Southeast 1,888 1,751 3,564 3,360
Midwest 976 742 1,678 1,190
Central 1,035 870 1,753 1,502
West 2,190 737 4,180 1,423
---------------- ---------------- ---------------- ----------------
6,593 4,551 12,095 8,319
================ ================ ================ ================
Unit net new orders:
Northeast 660 655 1,454 1,187
Southeast 2,285 1,954 4,515 4,487
Midwest 1,246 871 2,546 1,974
Central 1,308 914 2,592 2,268
West 2,780 784 5,260 1,717
---------------- ---------------- ---------------- ----------------
8,279 5,178 16,367 11,633
================ ================ ================ ================
Unit backlog:
Northeast 1,365 1,153
Southeast 3,510 3,268
Midwest 2,243 1,691
Central 1,742 1,580
West 4,090 1,099
---------------- ----------------
12,950 8,791
================ ================
International Homebuilding:
Unit settlements:
Pulte 1,732 54 2,453 143
Pulte-affiliated entities 43 1,590 964 3,275
---------------- ---------------- ---------------- ----------------
1,775 1,644 3,417 3,418
================ ================ ================ ================