EXHIBIT 99.1
Investor Relations Contact:
James Zeumer
[PULTE HOMES LOGO] Pulte Homes, Inc.
Vice President
(248) 433-4597
FOR IMMEDIATE RELEASE
Media Relations Contact:
Valerie Dolenga
Pulte Homes, Inc.
Corporate Communications
(248) 433-4633
PULTE HOMES REPORTS RECORD SECOND QUARTER RESULTS;
EARNINGS PER SHARE CLIMB 34% TO $1.95
BACKLOG EXCEEDS A RECORD $4.2 BILLION (15,199 HOUSES) AS
NET NEW ORDERS INCREASE 11% TO A PERIOD RECORD 9,191 HOUSES
COMPANY AGAIN RAISES EARNINGS GUIDANCE FOR 2003
BLOOMFIELD HILLS, MI, JULY 24, 2003 - Pulte Homes (NYSE: PHM) announced
today record financial results for its second quarter and six months ended June
30, 2003. For the quarter, net income from continuing operations increased 35%
to a record $122.0 million, as compared to $90.4 million for the comparable
prior year period. Second quarter earnings per diluted share of $1.95 represent
an increase of 34% over prior year earnings per diluted share of $1.45.
Consolidated revenues for the quarter were $2.0 billion, an increase of 16% over
prior year revenues of $1.7 billion.
"Pulte Homes' strong operating and financial performance, combined with
a backlog valued at more than $4.2 billion, puts the Company in an excellent
position to deliver record full-year results. The Company is again raising its
earnings guidance for 2003 to the new range of $9.00 to $9.25 per share,
representing an increase of 25% or more over last year's results," said Richard
J. Dugas, Jr., President and CEO of Pulte Homes.
Revenues from domestic homebuilding settlements increased 17% to a
second-quarter record of $1.8 billion. Higher revenues for the quarter resulted
from an 8% increase in average selling price to $259,000, combined with an 8%
increase in home closings to 7,112 units. The increase in average selling price
reflects a combination of price increases and a favorable change in the mix of
product closed during the period.
Second quarter domestic homebuilding pretax income increased 37% to
$197.6 million, as compared to prior year pretax income of $144.6 million. For
the period, the Company realized a 190 basis point increase in gross margins
from home sales to 21.8%, while SG&A expense as a percent of home settlement
revenues was unchanged at 10.3%.
Land sales during the quarter generated $31.3 million in revenues and
$9.1 million in gross margin, as compared to $34.1 million and $10.6 million,
respectively, last year. According to the Company, land sales are an important
element of its 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 9,191 up 11% over
prior year second-quarter orders of 8,279 homes. The Company reported increased
sales in all areas of the country: Northeast up 38%, Southeast up 7%, Midwest up
14%, Central up 1%, and the West up 12%. Pulte Homes' backlog as of June 30,
2003, was valued at $4.2 billion (15,199 homes), as compared to a value of $3.3
billion (12,950 homes) last year.
"We saw a strengthening demand trend over the quarter, with new
community openings helping to drive increased traffic and supporting strong
order rates," said Dugas. "As the only builder with the stated strategy of
serving all the major customer segments - first time, first move up, second move
up and active adult - we continue to see ample opportunity to grow our share of
the US housing market."
The Company's financial services operations reported second quarter
pre-tax income of $20.9 million, up 29% over prior year pre-tax income of $16.2
million. The improvement in second quarter financial results reflects a 36%
increase in the number of loan originations to 6,776, a favorable interest rate
environment and a higher capture rate of approximately 83% as compared to 77%
last year.
For the second quarter, Pulte's International operations reported
pre-tax income of $0.4 million, as compared to a pre-tax income of $1.9 million
for the comparable period last year. Mortgage funding delays in Mexico,
resulting in reduced closings for the period, was one of the key contributors to
lower earnings for the period.
SIX MONTH RESULTS
For the six months ended June 30, 2003, Pulte Homes' net income from
continuing operations increased 31% to $208.3 million, as compared to prior year
net income of $159.0 million. Diluted earnings per share for the first six
months were $3.34 per share, an increase of 30% over prior year earnings per
diluted share of $2.57. Consolidated revenues for the period were $3.5 billion,
up from $3.1 billion for the first six months of last year.
Revenues from domestic homebuilding settlements for the period were
$3.3 billion, up 14% over the prior year. Higher revenues for the period
resulted from a 7% increase in average selling price to $255,000, combined with
a 7% increase in the number of homes closed. The increase in average selling
price for the period reflects a combination of price increases and a favorable
change in the mix of product closed during the period.
Six month domestic homebuilding pretax income increased 29% to $336.1
million, as compared to prior year pretax income of $260.4 million. Gross
margins from home sales for the period increased 140 basis points to 21.4%,
offset by a 20 basis point increase in SG&A expense as a percent of home
settlement revenues. Land sales for the period generated $18.0 million in gross
margin, as compared to $19.0 million last year.
For the first six months, Pulte's financial services operations
reported pre-tax income of $38.0 million, up 34% from prior year pre-tax income
of $28.4 million. The improvement was driven by a 29% increase in loan
originations, a favorable interest rate environment and a higher capture rate of
approximately 82% as compared to 76% last year.
Pulte's International operations reported a net loss for the first six
months of $.6 million, as compared to pre-tax income of $1.4 million last year.
Gains in the Company's Puerto Rico operations were offset by weaker results in
Mexico and Argentina.
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.
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.
ABOUT PULTE HOMES
Pulte Homes, Inc., (www.pulte.com) based in Bloomfield Hills, Michigan,
has operations in more than 45 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 330,000 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,
2003 2002 2003 2002
-------------------------------------------------------------------------------
(000's omitted, except per share data)
(Unaudited)
CONSOLIDATED RESULTS:
Revenues:
Homebuilding $ 1,925,711 $ 1,661,670 $ 3,449,150 $ 3,017,275
Financial Services 31,774 23,842 59,370 46,866
Corporate 700 51 2,255 163
----------- ----------- ----------- -----------
Total Revenues $ 1,958,185 $ 1,685,563 $ 3,510,775 $ 3,064,304
=========== =========== =========== ===========
Pre-tax income (loss):
Homebuilding $ 198,021 $ 146,522 $ 335,433 $ 261,856
Financial Services 20,858 16,162 37,974 28,416
Corporate (22,046) (14,462) (37,415) (29,516)
----------- ----------- ----------- -----------
Income from continuing operations
before income taxes 196,833 148,222 335,992 260,756
Income taxes (74,833) (57,814) (127,691) (101,708)
----------- ----------- ----------- -----------
Income from continuing operations 122,000 90,408 208,301 159,048
Loss from discontinued operations (283) (205) (447) (733)
----------- ----------- ----------- -----------
Net income $ 121,717 $ 90,203 $ 207,854 $ 158,315
=========== =========== =========== ===========
EARNINGS PER SHARE -
ASSUMING DILUTION:
Income from continuing operations $ 1.95 $ 1.45 $ 3.34 $ 2.57
Loss from discontinued operations - - - (.01)
----------- ----------- ----------- -----------
Net income $ 1.95 $ 1.45 $ 3.34 $ 2.56
=========== =========== =========== ===========
Shares used in per share calculations 62,472 62,359 62,276 61,933
=========== =========== =========== ===========
Pulte Homes, Inc.
Condensed Consolidated Balance Sheets
($000's omitted)
(Unaudited)
June 30, 2003 December 31, 2002 June 30, 2002
-----------------------------------------------------
ASSETS
Cash and equivalents $ 391,087 $ 613,168 $ 212,767
Unfunded settlements 71,270 60,641 40,109
House and land inventories 5,018,263 4,293,597 4,244,918
Land under option agreements not owned 60,000 - -
Residential mortgage loans
available-for-sale 431,735 600,339 292,833
Goodwill 307,693 307,693 307,693
Intangible Assets 147,829 151,954 155,529
Other assets 901,139 861,063 853,224
---------- ---------- ----------
$7,329,016 $6,888,455 $6,107,073
========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable, accrued and other liabilities $1,637,936 $1,565,131 $1,328,803
Collateralized short-term debt, recourse solely to
applicable subsidiary assets 381,355 559,621 272,925
Income taxes 55,690 90,009 88,082
Subordinated debentures and senior notes 2,269,955 1,913,268 1,949,265
---------- ---------- ----------
Total Liabilities 4,344,936 4,128,029 3,639,075
Shareholders' Equity 2,984,080 2,760,426 2,467,998
---------- ---------- ----------
$7,329,016 $6,888,455 $6,107,073
========== ========== ==========
Pulte Homes, Inc.
Segment Data
Three Months Ended
June 30,
---------------------------------
2003 2002
---------------------------------
($000's omitted)
HOMEBUILDING:
Pre-tax income:
Domestic $ 197,641 $ 144,577
International 380 1,945
----------- -----------
Total Homebuilding $ 198,021 $ 146,522
=========== ===========
Domestic Homebuilding:
Home sales (settlements) $ 1,845,461 $ 1,576,285
Land sales 31,316 34,121
----------- -----------
Domestic Homebuilding
Revenue 1,876,777 1,610,406
Home cost of sales (1,444,008) (1,262,544)
Land cost of sales (22,175) (23,567)
Selling, general
& administrative expense (189,861) (163,086)
Other income (expense), net (5,989) (5,265)
----------- -----------
EBIT 214,744 155,944
Interest (17,103) (11,367)
----------- -----------
Pre-tax income $ 197,641 $ 144,577
=========== ===========
International Homebuilding:
Home sales (settlements) $ 48,934 $ 51,264
Cost of sales (38,297) (40,079)
Selling, general
& administrative
expense (10,127) (9,352)
Other income (expense), net (702) (82)
Minority Interest (154) (776)
Equity in income of joint venture
operations 726 970
----------- -----------
Pre-tax income $ 380 $ 1,945
=========== ===========
FINANCIAL SERVICES:
Pre-tax income $ 20,858 $ 16,162
=========== ===========
MORTGAGE
ORIGINATIONS:
Origination volume 6,776 4,994
=========== ===========
Origination
principal $ 1,161,000 $ 804,400
=========== ===========
CORPORATE:
Pre-tax loss:
Net interest expense $ (9,464) $ (9,770)
Other Corporate
expense, net (12,582) (4,692)
----------- -----------
Total Corporate $ (22,046) $ (14,462)
=========== ===========
Pulte Homes, Inc.
Segment Data
Six Months Ended
June 30,
---------------------------------
2003 2002
---------------------------------
($000's omitted)
HOMEBUILDING:
Pre-tax income (loss):
Domestic $ 336,079 $ 260,428
International (646) 1,428
----------- -----------
Total Homebuilding $ 335,433 $ 261,856
=========== ===========
Domestic Homebuilding:
Home sales (settlements) $ 3,292,659 $ 2,885,873
Land sales 64,225 57,769
----------- -----------
Domestic Homebuilding Revenue 3,356,884 2,943,642
Home cost of sales (2,587,824) (2,309,469)
Land cost of sales (46,235) (38,799)
Selling, general
& administrative
expense (356,961) (305,881)
Other income (expense), net (1,273) (9,175)
----------- -----------
EBIT 364,591 280,318
Interest (28,512) (19,890)
----------- -----------
Pre-tax income $ 336,079 $ 260,428
=========== ===========
International Homebuilding:
Home sales (settlements) $ 92,266 $ 73,633
Cost of sales (73,981) (57,908)
Selling, general
& administrative
expense (20,590) (16,355)
Other income (expense), net (1,093) (858)
Minority Interest 981 (396)
Equity in income of joint venture
operations 1,771 3,312
----------- -----------
Pre-tax income (loss) $ (646) $ 1,428
=========== ===========
FINANCIAL SERVICES:
Pre-tax income $ 37,974 $ 28,416
=========== ===========
MORTGAGE
ORIGINATIONS:
Origination volume 11,938 9,220
=========== ===========
Origination
principal $ 2,028,200 $ 1,476,200
=========== ===========
CORPORATE:
Pre-tax loss:
Net interest expense $ (18,480) $ (19,212)
Other Corporate
expense, net (18,935) (10,304)
----------- -----------
Total Corporate $ (37,415) ($ 29,516)
=========== ===========
Pulte Homes, Inc.
Business Operating Data
Three Months Ended Six Months Ended
June 30, June 30,
----------------------------------------------------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
SETTLEMENT REVENUES ($000's omitted):
Pulte Homebuilding settlement revenues:
Domestic $1,845,461 $1,576,285 $3,292,659 $2,885,873
International 48,934 51,264 92,266 73,633
---------- ---------- ---------- ----------
Total Pulte 1,894,395 1,627,549 3,384,925 2,959,506
---------- ---------- ---------- ----------
Pulte-affiliate international homebuilding
settlement revenues 8,016 6,655 16,537 31,108
---------- ---------- ---------- ----------
Total Pulte and Pulte-affiliate settlement
revenues $1,902,411 $1,634,204 $3,401,462 $2,990,614
========== ========== ========== ==========
SETTLEMENT UNITS:
Pulte Homebuilding settlement units:
Domestic 7,112 6,593 12,897 12,095
International 1,468 1,732 2,659 2,453
---------- ---------- ---------- ----------
Total Pulte 8,580 8,325 15,556 14,548
---------- ---------- ---------- ----------
Pulte-affiliate international homebuilding
settlement units 37 43 85 964
---------- ---------- ---------- ----------
Total Pulte and Pulte-affiliate settlement units 8,617 8,368 15,641 15,512
========== ========== ========== ==========
Domestic Homebuilding:
Unit settlements:
Northeast 553 504 979 920
Southeast 1,759 1,888 3,508 3,564
Midwest 1,041 976 1,883 1,678
Central 1,133 1,035 1,867 1,753
West 2,626 2,190 4,660 4,180
---------- ---------- ---------- ----------
7,112 6,593 12,897 12,095
========== ========== ========== ==========
Unit net new orders*:
Northeast 909 660 1,645 1,454
Southeast 2,441 2,285 4,704 4,515
Midwest 1,422 1,246 2,540 2,546
Central 1,317 1,308 2,502 2,592
West 3,102 2,780 6,033 5,260
---------- ---------- ---------- ----------
9,191 8,279 17,424 16,367
========== ========== ========== ==========
Unit backlog:
Northeast 1,795 1,365
Southeast 4,135 3,510
Midwest 2,258 2,243
Central 1,540 1,742
West 5,471 4,090
---------- ----------
15,199 12,950
========== ==========
* Net new orders for the three and six months ended June 30, 2003 do not include
67 units of backlog acquired.