EXHIBIT 99.1
[PULTE HOMES LOGO]
FOR IMMEDIATE RELEASE Company Contacts
Investors: James Zeumer
(248) 433-4597
email: jim.zeumer@pulte.com
Media: Valerie Dolenga
(248) 433-4633
email: valerie.dolenga@pulte.com
PULTE HOMES ANNOUNCES RECORD FIRST QUARTER RESULTS
COMPANY RAISES EARNINGS GUIDANCE FOR 2003
BLOOMFIELD HILLS, MI, APRIL 24, 2003 - Pulte Homes, Inc. (NYSE: PHM)
announced today record financial results for its first quarter ended March 31,
2003. First quarter net income from continuing operations was a record $86.3
million, an increase of 26% over prior year first quarter net income of $68.6
million. First quarter earnings per diluted share of $1.39 represents an
increase of 24% over prior year earnings per diluted share of $1.12.
The Company's consolidated revenues for the quarter were $1.6 billion,
compared with prior year revenues of $1.4 billion. The 13% jump in revenues for
the period reflects higher sales in Pulte Homes' domestic and international
operations, as well as increased revenues within the Company's financial
services segment.
Pulte Homes ended the quarter with a net debt to total capitalization
ratio of approximately 38%, down from approximately 43% at the same point last
year. Under its $100 million stock repurchase authorization, Pulte Homes bought
back 395,400 shares during the quarter.
"Our strong financial results have provided the Company with tremendous
flexibility to take advantage of opportunities when they appear," said Mark J.
O'Brien, President and CEO. "The Company has purchased its own stock and
acquired strategic land assets in the vital Southern California market, all
while strengthening its balance sheet. Given the strong start to the year, we
are raising our earnings guidance for 2003 to a range of $8.15 to $8.45 per
share, up from prior guidance of $7.85 to $8.25 per share. Our current guidance
assumes 62.5 million shares outstanding and an effective tax rate of 38%."
First quarter revenues from domestic homebuilding settlements increased
11% to $1.4 billion. Higher revenues for the period were the result of a 5%
increase in closings to 5,785 houses, combined with a 5% increase in average
selling price to $250,000. The higher average selling price during the period
reflects a combination of changes in the mix of houses closed, as well as price
increases realized during the quarter.
First quarter domestic homebuilding gross profit increased 16% to
$303.4 million, as compared to prior year gross profit of $262.7 million.
Domestic homebuilding margins improved 90 basis points to 21.0%, as the Company
continued to benefit from a sound pricing environment and ongoing efforts to
lower its construction costs.
"Pulte Homes' first quarter results reflect continued success in
implementing our strategy of serving all the major customer segments: first
time, first move up, second move up and active adult," said Mr. O'Brien. "This
strategy drives growth through greater market share gains and allows Pulte Homes
to serve the largest universe of potential homebuyers."
Land sales and related gross profit in the quarter were $32.9 million
and $8.8 million, respectively, compared with $23.6 million and $8.4 million,
respectively, in the prior year. Although the year-over-year contribution from
land activity was fairly comparable for the first quarter, land sales can
fluctuate significantly depending upon the timing of specific transactions.
Domestic net new home orders for the quarter were 8,233, up 2% over
prior year first quarter orders of 8,088 homes. Pulte's ending backlog was
valued at a record $3.6 billion (13,053 homes), compared with a value of $2.8
billion (11,264 homes) last year.
The Company's financial services operations reported first quarter
pre-tax income of $17.1 million, up 40% over prior year pre-tax income of $12.3
million. Improved performance for the quarter reflects higher originations of
5,162 mortgages, up 22%, combined with a favorable interest rate environment.
The mortgage capture rate for the quarter increased over 5 percentage points to
over 80%.
A conference call discussing Pulte's first 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.
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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.
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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 300,000 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
Three Months Ended
March 31,
-------------------------------
2003 2002
----------- -----------
(000's omitted, except per
share data)
(Unaudited)
CONSOLIDATED RESULTS:
Revenues:
Homebuilding $ 1,523,439 $ 1,355,605
Financial Services 27,596 23,024
Corporate 1,555 112
----------- -----------
Total Revenues $ 1,552,590 $ 1,378,741
=========== ===========
Pre-tax income (loss):
Homebuilding $ 137,412 $ 115,334
Financial Services 17,116 12,254
Corporate (15,369) (15,054)
----------- -----------
Income from continuing
operations before income taxes 139,159 112,534
Income taxes (52,858) (43,894)
----------- -----------
Income from continuing operations 86,301 68,640
Income (loss) from discontinued operations (164) (528)
----------- -----------
Net income $ 86,137 $ 68,112
=========== ===========
EARNINGS PER SHARE -
ASSUMING DILUTION:
Income from continuing operations $ 1.39 $ 1.12
Income (loss) from discontinued operations - (.01)
----------- -----------
Net income $ 1.39 $ 1.11
=========== ===========
Shares used in per share calculations 62,019 61,472
=========== ===========
Certain 2002 classifications have been changed to conform with the 2003
presentation.
Pulte Homes, Inc.
Condensed Consolidated Balance Sheets
($000's omitted)
(Unaudited)
March 31, December 31, March 31,
2003 2002 2002
--------------------- -------------------- ------------------
ASSETS
Cash and equivalents $ 479,577 $ 613,168 $ 59,772
Unfunded settlements 49,754 60,641 28,374
House and land inventories 4,604,208 4,293,597 3,972,287
Residential mortgage loans
available-for-sale 389,150 600,339 282,247
Goodwill 307,693 307,693 307,693
Intangible assets 149,892 151,954 157,567
Other assets 822,606 861,063 800,088
-------------------- -------------------- ------------------
$6,802,880 $6,888,455 $5,608,028
===================== ==================== ==================
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Accounts payable, accrued and
other liabilities $1,376,538 $1,565,131 $1,099,293
Unsecured short-term
borrowings - - 125,000
Collateralized short-term
debt, recourse solely to
financial services
subsidiary assets 343,724 559,621 261,256
Income taxes 41,678 90,009 23,424
Senior notes and
subordinated notes 2,209,882 1,913,268 1,722,605
--------------------- -------------------- ------------------
Total Liabilities 3,971,822 4,128,029 3,231,578
Shareholders' Equity 2,831,058 2,760,426 2,376,450
--------------------- -------------------- ------------------
$6,802,880 $6,888,455 5,608,028
===================== ==================== ==================
Certain 2002 classifications have been changed to conform with the 2003
presentation.
Pulte Homes, Inc.
Segment Data
Three Months Ended
March 31,
--------------------------------------------------------
2003 2002
------------------------- -----------------------------
($000's omitted)
HOMEBUILDING:
Pre-tax income (loss):
Domestic $ 138,438 $ 115,851
International (1,026) (517)
----------------- ----------------
Total Homebuilding $ 137,412 $ 115,334
================= ================
Domestic Homebuilding:
Home sales (settlements) $ 1,447,198 $1,309,588
Land sales 32,909 23,648
Domestic Homebuilding ----------------- ----------------
Revenue 1,480,107 1,333,236
Home cost of sales (1,143,816) (1,046,925)
Land cost of sales (24,060) (15,232)
Selling, general
& administrative expense (167,100) (142,795)
Other income (expense), net 4,716 (3,910)
----------------- ----------------
EBIT 149,847 124,374
Interest (11,409) (8,523)
---------------- ----------------
Pre-tax income $ 138,438 $ 115,851
================= ================
International Homebuilding:
Home sales (settlements) $ 43,332 $ 22,369
Cost of sales (35,684) (17,829)
Selling, general
& administrative expense (10,463) (7,003)
Other income (expense), net (391) (776)
Minority Interest 1,135 380
Equity in income of joint
venture operations 1,045 2,342
----------------- ----------------
Pre-tax income (loss) $ (1,026) $ (517)
================= ================
FINANCIAL SERVICES:
Pre-tax income $ 17,116 $ 12,254
================= ================
MORTGAGE
ORIGINATIONS:
Origination volume 5,162 4,226
================= ================
Origination
principal $ 867,200 $ 671,800
================= ================
CORPORATE:
Pre-tax loss:
Net interest expense $ (9,016) $ (9,442)
Other Corporate
expense, net (6,353) (5,612)
----------------- ----------------
Total Corporate $ (15,369) $ (15,054)
================= ================
Certain 2002 classifications have been changed to conform with the 2003
presentation.
Pulte Homes, Inc.
Business Operating Data
Three Months Ended March 31,
------------- --------------
2003 2002
------------- --------------
SETTLEMENT REVENUES ($000's omitted):
Pulte Homebuilding settlement revenues:
Domestic $1,447,198 $1,309,588
International 43,332 22,369
------------- --------------
Total Pulte 1,490,530 1,331,957
------------- --------------
Pulte-affiliate international homebuilding
settlement revenues 8,521 24,453
------------- --------------
Total Pulte and Pulte-affiliate settlement revenues $1,499,051 $1,356,410
============= ==============
SETTLEMENT UNITS:
Pulte Homebuilding settlement units:
Domestic 5,785 5,502
International 1,191 721
------------- --------------
Total Pulte 6,976 6,223
------------- --------------
Pulte-affiliate international homebuilding
settlement units 48 921
------------- --------------
Total Pulte and Pulte-affiliate settlement units 7,024 7,144
============= ==============
Domestic Homebuilding:
Unit settlements:
Northeast 426 416
Southeast 1,749 1,676
Midwest 842 702
Central 734 718
West 2,034 1,990
------------- --------------
5,785 5,502
============= ==============
Unit net new orders:
Northeast 736 794
Southeast 2,263 2,230
Midwest 1,118 1,300
Central 1,185 1,284
West 2,931 2,480
------------- --------------
8,233 8,088
============= ==============
Unit backlog:
Northeast 1,439 1,209
Southeast 3,453 3,113
Midwest 1,877 1,973
Central 1,356 1,469
West 4,928 3,500
------------- --------------
13,053 11,264
============= ==============