[PULTE HOMES LOGO] EXHIBIT 99.1
FOR IMMEDIATE RELEASE Investor Relations
------------------
Contact: James Zeumer
Vice President
(248) 433-4597
email: jim.zeumer@pulte.com
Media Relations
Contact: Mark Marymee
Corporate Communications
(248) 433-4648
email: mark.marymee@pulte.com
PULTE HOMES REPORTS RECORD FOURTH QUARTER AND
FULL YEAR 2005 FINANCIAL RESULTS
- - FOURTH QUARTER EARNINGS FROM CONTINUING OPERATIONS INCREASE 28% TO A
RECORD $2.03 PER DILUTED SHARE
- - Q4 HOME SETTLEMENT REVENUES CLIMB 28% TO A RECORD $5.0 BILLION
- - NET NEW ORDERS FOR THE QUARTER CLIMB 24% TO $3.3 BILLION; BACKLOG VALUE
INCREASES 22% TO $6.3 BILLION
- - 2005 CONSOLIDATED REVENUES INCREASE 28% TO A RECORD $14.7 BILLION; 2005
EARNINGS FROM CONTINUING OPERATIONS INCREASE 43% TO $5.47 PER DILUTED
SHARE
- - COMPANY REAFFIRMS GUIDANCE FOR 2006 EARNINGS FROM CONTINUING OPERATIONS IN
THE RANGE OF $6.00 TO $6.25 PER DILUTED SHARE
- - COMPANY REPURCHASES $102 MILLION OF STOCK DURING Q4; BOARD APPROVES NEW
$200 MILLION SHARE REPURCHASE AUTHORIZATION
BLOOMFIELD HILLS, MI, FEBRUARY 1, 2006 - Pulte Homes, Inc. (NYSE: PHM)
today announced record financial results for its fourth quarter and year ended
December 31, 2005. For the quarter, income from continuing operations increased
28% to a record $531.7 million, compared with $415.2 million in 2004. Fourth
quarter earnings from continuing operations increased 28% to $2.03 per diluted
share, compared with prior year earnings from continuing operations of $1.59 per
diluted share. Quarterly and annual earnings per share for both years have been
adjusted for the Company's 2:1 stock split effected September 1, 2005 and for
the reclassification of Pulte's Mexico business to Discontinued Operations
following its sale as announced on December 27, 2005.
Consolidated fourth quarter revenues for the Company increased 24% to $5.1
billion.
For the full year 2005, Pulte Homes reported record consolidated revenues
of $14.7 billion, an increase of 28% over the prior year. Full year earnings
from continuing operations gained 43% to $5.47 per diluted share, compared with
$3.82 in the prior year.
"We are very pleased with Pulte's fourth quarter and full year operating
and financial results," said Richard J. Dugas, Jr., President and Chief
Executive Officer. "The strength of Pulte's diversified
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business model, particularly our customer segment diversity that includes an
unmatched position serving the exploding Active Adult population with our Del
Webb brand, once again allowed Pulte to post excellent new order growth that is
among the strongest in our industry. Fundamentally, our strategy of serving all
major buyer segments and geographies offers opportunities for increased growth
and more consistent financial performance."
"Through the scale, scope and diversification advantages Pulte maintains,
we see opportunity for further growth in 2006. We continue to target 2006
earnings growth of roughly 10% to 15%, which is in-line with current guidance
for earnings of $6.00 to $6.25 per share," said Dugas.
In a separate release, Pulte Homes announced that its Board of Directors
has authorized the Company to repurchase up to an additional $200 million of its
outstanding stock. "During the fourth quarter of 2005, we repurchased
approximately $102 million worth of our outstanding shares, which used all but
approximately $20 million of the previous authorization," said Roger A. Cregg,
Executive Vice President and CFO. "Given current market conditions, we see an
opportunity to invest in our business through the purchase of land assets and
our own stock."
FOURTH QUARTER RESULTS
Revenues from homebuilding settlements for the fourth quarter increased
28% to a record $5 billion. Higher revenues for the period were the result of a
9% increase in average selling price to $321,000 combined with a 17% increase in
total home deliveries to 15,670 homes. The higher average selling price for the
period reflects a combination of price increases realized during the quarter and
changes in the mix of homes delivered.
Fourth quarter homebuilding pretax income increased 23% to $820.5 million,
compared with prior year pretax income of $664.8 million. Pretax income for the
period benefited from a 130 basis point decrease in Selling, General &
Administrative expenses as a percent of home settlement revenues, partially
offset by a 40 basis point decrease in gross margins from home settlements. In
addition, land sales during the quarter generated $9.3 million in gross profits,
compared with $62.9 million in 2004. Land sales are an important component of
the Company's domestic homebuilding operations, but can fluctuate
quarter-to-quarter depending upon the timing of individual land transactions.
The dollar value of net new home orders for the quarter was $3.3 billion,
or 9,821 homes, up 24% from the prior year fourth quarter order value of $2.7
billion, or 8,940 homes. Ending backlog for Pulte's homebuilding operations was
valued at $6.3 billion, an increase of 22% over the prior year. Yearend unit
backlog totaled 17,817 homes, an increase of 12% compared with 15,916 at the end
of 2004.
Fourth quarter pretax income for the Company's financial services
operations totaled $25.9 million, compared with prior year pretax income of
$17.7 million. The 47% increase in pretax income was driven by an increase in
loan originations and a more favorable interest rate environment. Higher
homebuilding volumes, combined with a 180 basis point increase in capture rate
to 90.6%, helped drive loan production for the period to 14,972 loans,
representing $3 billion in principal value.
Effective with the sale of Pulte Mexico as announced on December 27, 2005,
Pulte's Mexican business operations were reclassified into Discontinued
Operations. In addition, the Company recorded fourth quarter income in
discontinued operations associated with the previously announced judgment in the
Company's breach of contract case against the United States government. As
reported in a November 18, 2005 press release, the company received $48.7
million from the conclusion of this case, with the funds to be used for general
corporate purposes.
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FULL YEAR RESULTS
For the year ended December 31, 2005, Pulte Homes' income from continuing
operations increased 45% to $1.4 billion, compared with prior year income of
$993.6 million. Earnings from continuing operations for 2005 were $5.47 per
diluted share, an increase of 43% over prior year earnings from continuing
operations of $3.82 per diluted share. Annual earnings per share for both years
have been adjusted for the Company's 2:1 stock split effected September 1, 2005
and for the reclassification of Pulte's Mexico business operations to
Discontinued Operations following the sale of its homebuilding operations
announced on December 27, 2005.
Consolidated revenues for 2005 were a record $14.7 billion, up 28% from
$11.5 billion in 2004.
Revenues from homebuilding settlements for 2005 increased 30% to $14.4
billion. Higher revenues for the period resulted from a 10% increase in average
selling price to $315,000 combined with an 18% increase in the number of homes
closed which totaled a record 45,630 homes. 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.
Homebuilding pretax income for the year increased 41% to a record $2.3
billion, compared with prior year pretax income of $1.6 billion. Gross margins
from home sales for the period increased 80 basis points to 23.4%, while
Selling, General & Administrative costs as a percentage of settlement revenues
dropped approximately 110 basis points to 7.7%. Land sales for the year
generated $18.2 million in pretax income, compared with $99.8 million in 2004.
For 2005, Pulte's financial services operations reported pretax income of
$70.6 million, an increase of 49% over prior year pretax income of $47.4
million. Higher homebuilding volumes, combined with a 140 basis point increase
in capture rate to 89.2%, helped drive loan originations for the period to
42,994 loans, representing $8.5 billion in principal value.
A conference call discussing Pulte Homes' fourth quarter results will be
held Thursday, February 2, 2006, 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. ALL
FORWARD-LOOKING STATEMENTS MADE ARE MADE AS OF THE DATE HEREOF, AND THE RISK
THAT ACTUAL RESULTS WILL DIFFER MATERIALLY FROM EXPECTATIONS WILL INCREASE WITH
THE PASSAGE OF TIME. PULTE UNDERTAKES NO DUTY TO UPDATE ANY FORWARD-LOOKING
STATEMENT WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR CHANGES IN
PULTE'S EXPECTATIONS.
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ABOUT PULTE HOMES
Pulte Homes, Inc., (NYSE: PHM), based in Bloomfield Hills, Mich., is a
FORTUNE 200 company with operations in 54 markets and 27 states. In 2005, the
company delivered 45,630 homes in the U.S. and generated consolidated revenues
of $14.7 billion. During its 56-year history, the company has constructed more
than 450,000 homes. In 2005, Pulte Homes received the most awards in the J.D.
Power and Associates New Home-Builder Customer Satisfaction Study(sm), marking
the sixth-straight year Pulte achieved this distinction among America's largest
homebuilding companies. Pulte operations were highest-ranked in 16 markets and
were among the top three in 22 of 27 markets in which it qualified. Under its
Del Webb brand, Pulte is the nation's largest builder of active adult
communities for people age 55 and better. Its DiVosta operation is nationally
recognized for a proprietary building system that has delivered more than 25,000
"Built Solid" homes in Florida since 1960. Pulte Mortgage LLC is a nationwide
lender and offers Pulte customers a wide variety of loan products and superior
customer service.
WEBSITES: www.pulte.com; www.delwebb.com; www.divosta.com
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Pulte Homes, Inc.
Condensed Consolidated Results
Of Operations
(000's omitted, except per share data)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
---------------------------- ------------------------------
2005 2004 2005 2004
------------- ------------ ------------ ------------
CONSOLIDATED RESULTS:
Revenues:
Homebuilding $ 5,077,843 $ 4,098,732 $ 14,528,236 $ 11,400,008
Financial Services 52,497 36,567 161,414 112,719
Other 1,260 165 4,885 1,749
------------ ------------ ------------ ------------
Total Revenues $ 5,131,600 $ 4,135,464 $ 14,694,535 $ 11,514,476
============ ============ ============ ============
Pretax income (loss):
Homebuilding $ 820,459 $ 664,822 $ 2,298,822 $ 1,635,580
Financial Services 25,933 17,677 70,586 47,429
Other (15,799) (22,019) (92,394) (90,685)
------------ ------------ ------------ ------------
Income from continuing
operations before
income taxes 830,593 660,480 2,277,014 1,592,324
Income taxes 298,856 245,292 840,126 598,751
------------ ------------ ------------ ------------
Income from continuing
operations 531,737 415,188 1,436,888 993,573
Income(loss) from
discontinued
operations 42,802 (17,815) 55,025 (7,032)
------------ ------------ ------------ ------------
Net income $ 574,539 $ 397,373 $ 1,491,913 $ 986,541
============ ============ ============ ============
EARNINGS PER SHARE -
ASSUMING DILUTION:
Income from continuing
operations $ 2.03 $ 1.59 $ 5.47 $ 3.82
Income (loss) from
discontinued
operations .16 (.07) .21 (.03)
------------ ------------ ------------ ------------
Net income $ 2.19 $ 1.52 $ 5.68 $ 3.79
============ ============ ============ ============
Shares used in per share
calculations 262,443 261,412 262,801 260,234
============ ============ ============ ============
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Pulte Homes, Inc.
Condensed Consolidated Balance Sheets
($000's omitted)
December 31, December 31,
2005 2004
(Unaudited)
--------------- ---------------
ASSETS
Cash and equivalents $ 1,002,268 $ 308,118
Unfunded settlements 156,663 118,471
House and land inventory 8,756,093 7,241,350
Land held for sale 257,724 230,086
Land, not owned, under option agreements 76,671 106,380
Residential mortgage loans
available-for-sale 1,038,506 697,077
Investments in unconsolidated entities 301,613 258,868
Goodwill 307,693 307,693
Intangible assets, net 127,204 135,454
Other assets 1,023,739 971,634
Deferred income tax asset -- 31,766
--------------- ---------------
$ 13,048,174 $ 10,406,897
=============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable, accrued and other
liabilities $ 2,584,060 $ 2,201,852
Collateralized short-term debt,
recourse solely to applicable
subsidiary assets 893,001 617,415
Income taxes 219,504 203,806
Deferred income tax liability 7,740 --
Senior notes and subordinated notes 3,386,527 2,861,550
--------------- ---------------
Total Liabilities 7,090,832 5,884,623
Shareholders' Equity 5,957,342 4,522,274
--------------- ---------------
$ 13,048,174 $ 10,406,897
=============== ===============
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Pulte Homes, Inc.
Segment Data
($000's omitted)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
---------------------------------- ----------------------------------
2005 2004 2005 2004
--------------- --------------- --------------- ---------------
HOMEBUILDING:
Home sales (settlements) $ 5,027,123 $ 3,941,238 $ 14,370,667 $ 11,094,617
Land sales 50,720 157,494 157,569 305,391
--------------- --------------- --------------- ---------------
Homebuilding
Revenue 5,077,843 4,098,732 14,528,236 11,400,008
Home cost of sales (3,903,857) (3,046,554) (11,005,591) (8,583,551)
Land cost of sales (41,387) (94,601) (139,377) (205,589)
Selling, general
& administrative
expense (313,900) (294,647) (1,107,816) (973,629)
Other income (expense), net 1,760 1,892 23,370 (1,659)
--------------- --------------- --------------- ---------------
Pretax income $ 820,459 $ 664,822 $ 2,298,822 $ 1,635,580
=============== =============== =============== ===============
FINANCIAL SERVICES:
Pretax income $ 25,933 $ 17,677 $ 70,586 $ 47,429
=============== =============== =============== ===============
OTHER:
Pretax loss:
Net interest expense $ (2,481) $ (11,445) $ (43,344) $ (47,372)
Other expense, net (13,318) (10,574) (49,050) (43,313)
--------------- --------------- --------------- ---------------
Total Other $ (15,799) $ (22,019) $ (92,394) $ (90,685)
=============== =============== =============== ===============
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Pulte Homes, Inc.
Business Operating Data
($000's omitted)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
----------------------------- -----------------------------
2005 2004 2005 2004
------------- ------------- ------------- -------------
Homebuilding Settlement Revenues $ 5,027,123 $ 3,941,238 $ 14,370,667 $ 11,094,617
============= ============= ============= =============
Unit settlements:
Northeast 1,500 1,166 3,909 3,249
Southeast 4,201 3,306 12,911 9,362
Midwest 2,435 2,137 6,121 5,520
Central 2,639 2,347 6,829 6,066
West 4,895 4,468 15,860 14,415
------------- ------------- ------------- -------------
15,670 13,424 45,630 38,612
============= ============= ============= =============
Average selling price $ 321 $ 294 $ 315 $ 287
============= ============= ============= =============
Unit net new orders:
Northeast 697 778 4,019 3,197
Southeast 2,553 2,887 13,271 10,941
Midwest 1,332 1,145 6,231 5,396
Central 1,873 1,288 7,969 5,987
West 3,366 2,842 16,041 15,055
------------- ------------- ------------- -------------
9,821 8,940 47,531 40,576
============= ============= ============= =============
Unit net new orders -
dollars: $ 3,285,000 $ 2,650,000 $ 15,518,000 $ 12,101,000
============= ============= ============= =============
Unit backlog:
Northeast 1,593 1,483
Southeast 5,665 5,305
Midwest 1,387 1,277
Central 2,217 1,077
West 6,955 6,774
------------- -------------
17,817 15,916
============= =============
Dollars in backlog $ 6,301,000 $ 5,154,000
============= =============
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Pulte Homes, Inc.
Business Operating Data, continued
($000's omitted)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
------------------------------ ------------------------------
2005 2004 2005 2004
------------- ------------- ------------- -------------
MORTGAGE ORIGINATIONS:
Origination volume 14,972 12,316 42,994 35,232
============= ============= ============= =============
Origination principal $ 3,046,900 $ 2,384,800 $ 8,528,600 $ 6,739,200
============= ============= ============= =============
Capture rate percentage 90.6% 88.8% 89.2% 87.8%
============= ============= ============= =============
Pulte Homes, Inc.
Supplemental Information
($000's omitted)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
------------------------- -------------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
Interest expense:
Homebuilding (included in home
cost of sales) $ 58,506 $ 45,688 $ 179,584 $ 133,049
Financial Services 5,768 2,592 16,004 7,241
Other 3,721 11,610 48,209 49,121
----------- ----------- ----------- -----------
Total interest expense $ 67,995 $ 59,890 $ 243,797 $ 189,411
=========== =========== =========== ===========
Depreciation & amortization $ 16,702 $ 12,255 $ 61,512 $ 46,296
=========== =========== =========== ===========
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