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
AS EARNINGS FROM CONTINUING OPERATIONS SURGE 75 PERCENT
Orders and Closings Climb; Backlog Exceeds 11,200 Homes and $2.8
Billion in Value
BLOOMFIELD HILLS, MI, APRIL 23, 2002 - Pulte Homes, Inc. (NYSE: PHM)
announced today record financial results for its first quarter ended March 31,
2002. First quarter income from continuing operations was a record $68.6
million, or $1.12 per share, an increase of 75% over prior year first quarter
income from continuing operations of $39.1 million, or $0.91 per share. Shares
used in calculating first-quarter EPS increased 43% to 61.5 million as a result
of the Company's merger with Del Webb effective July 2001.
The Company's consolidated revenues for the quarter were $1.4 billion,
an increase of 64% over prior year revenues of $840.5 million. Higher revenues
for the period reflect gains throughout Pulte Homes' business and its expanded
operations resulting from the Company's merger with Del Webb.
"Pulte Homes has gotten off to an excellent start in 2002, setting new
records for home sales, deliveries and earnings," said Mark J. O'Brien,
President and CEO. "The Company continues to show its ability to profitably grow
Pulte's operations through changing economic conditions. First quarter results
also demonstrate the successful integration of Del Webb in capturing the
business synergies and growth opportunities that supported our original merger
strategy."
Domestic homebuilding revenues for the quarter increased 63% to $1.3
billion. Higher revenues for the period were the result of a 46% increase in
closings to 5,502 houses, combined with an 11% increase in the average selling
price to $238,000. Increases in unit volumes and average selling price reflect
favorable building conditions and the inclusion of Del Webb operations for the
quarter.
First quarter domestic homebuilding gross profit increased 64% to
$262.7 million, as compared to prior year gross profit of $160.0 million.
Domestic homebuilding margins improved 20 basis points to 20.1%, as the Company
benefited from improved pricing and efforts to lower its construction costs.
Land sales and related pre-tax income in the quarter were $23.6 million
and $8.4 million, respectively, as compared to $7.7 million and $1.0 million,
respectively, in the prior year. Land sales can fluctuate significantly from
quarter-to-quarter, but the results are consistent with the Company's stated
strategy of increasing land sales following its recent merger with Del Webb.
Domestic net new home orders for the quarter were 8,088, up 25% over
prior year first quarter orders of 6,455 homes. Pulte's ending backlog was
valued at $2.8 billion (11,264 homes), as compared to a value of $1.9 billion
(8,164 homes) last year.
The Company's financial services operations reported first quarter
pre-tax income of $12.3 million, up 84% over prior year pre-tax income of $6.7
million. The improvement in first quarter financial results reflects a 30%
increase in loan originations resulting from inclusion of Del Webb business, a
favorable interest rate environment and a higher capture rate of 75.2% as
compared to 70.1% last year.
"We continue to have a very positive outlook with regard to the
ongoing strength in consumer demand for new homes throughout the country.
Although the impact of reduced demand in the third and fourth quarters of 2001
have not fully worked their way through the system, we remain optimistic about
Pulte's market opportunities. As such, the Company continues to target full-year
earnings of between $6.75 and $7.00, which represents earnings growth of roughly
12% to 16% over 2001," said O'Brien.
A conference call discussing Pulte's first quarter results will be
held today at 9:00 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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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 BUT NOT LIMITED
TO, CHANGES IN ECONOMIC CONDITIONS AND INTEREST RATES, INCREASES IN RAW MATERIAL
AND LABOR COSTS, ISSUES AND TIMING SURROUNDING LAND ENTITLEMENT AND DEVELOPMENT,
WEATHER CONDITIONS, AND GENERAL COMPETITIVE FACTORS, THAT MAY CAUSE ACTUAL
RESULTS TO DIFFER MATERIALLY.
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ABOUT PULTE HOMES
Pulte Homes, Inc., (www.pulte.com) based in Bloomfield Hills, Michigan,
has operations in 43 markets across the United States, Argentina, Puerto Rico
and Mexico, where it is the fifth-largest builder. Through its Del Webb
(www.delwebb.com) operations, 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
March 31,
-------------------------------
2002 2001
----------- ---------
(000's omitted, except per share data)
(Unaudited)
CONSOLIDATED RESULTS:
Revenues:
Homebuilding $ 1,355,605 $ 825,047
Financial Services 23,024 14,711
Corporate 112 717
----------- ---------
Total Revenues $ 1,378,741 $ 840,475
=========== =========
Pre-tax income (loss):
Homebuilding $ 115,334 $ 66,478
Financial Services 12,254 6,672
Corporate (15,054) (9,542)
----------- ---------
Income from continuing
operations before income taxes 112,534 63,608
Income taxes (43,894) (24,489)
----------- ---------
Income from continuing operations 68,640 39,119
Income (loss) from discontinued operations (528) 252
----------- ---------
Net income $ 68,112 $ 39,371
=========== =========
EARNINGS PER SHARE -
ASSUMING DILUTION:
Income from continuing operations $ 1.12 $ .91
Income (loss) from discontinued operations (.01) .01
----------- ---------
Net income $ 1.11 $ .92
=========== =========
Shares used in per share calculations 61,472 42,999
=========== =========
Certain 2001 classifications have been changed to conform with the 2002
presentation.
Pulte Homes, Inc.
Condensed Consolidated Balance Sheets
($000's omitted)
(Unaudited)
March 31, 2002 December 31, 2001 March 31, 2001
-------------- ----------------- --------------
ASSETS
Cash and equivalents $ 59,772 $ 72,144 $ 199,343
Unfunded settlements 28,374 69,631 46,200
House and land inventories 3,972,287 3,833,763 2,063,600
Residential mortgage loans 279,062 431,735 220,108
available-for-sale
Goodwill 307,693 307,693 28,758
Intangible assets 157,567 159,604 -
Other assets 803,273 815,994 484,902
---------- ---------- ----------
$5,608,028 $5,690,564 $3,042,911
========== ========== ==========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Accounts payable and accrued liabilities $1,099,293 $1,155,702 $ 671,493
Unsecured short-term
borrowings 125,000 110,000 -
Collateralized short-term debt, recourse
solely to financial services subsidiary
assets 261,256 413,675 209,830
Income taxes 23,424 11,658 775
Subordinated debentures and senior notes 1,722,605 1,722,864 865,202
---------- ---------- ----------
Total Liabilities 3,231,578 3,413,899 1,747,300
Shareholders' Equity 2,376,450 2,276,665 1,295,611
---------- ---------- ----------
5,608,028 $5,690,564 $3,042,911
========== ========== ==========
</Table>
Certain 2001 classifications have been changed to conform with the 2002
presentation.
Pulte Homes, Inc.
Segment Data
Three Months Ended
March 31,
-------------------------------
2002 2001
----------- ---------
($000's omitted)
HOMEBUILDING:
Pre-tax income (loss):
Domestic $ 115,851 $ 65,345
International (517) 1,133
----------- ---------
Total Homebuilding $ 115,334 $ 66,478
=========== =========
Domestic Homebuilding:
Home sales (settlements) $ 1,309,588 $ 805,796
Land sales 23,648 7,727
----------- ---------
Domestic Homebuilding Revenue 1,333,236 813,523
Home cost of sales (1,046,925) (645,770)
Land cost of sales (15,232) (6,721)
Selling, general
& administrative
expense (142,795) (86,202)
Other expense (3,910) (3,545)
----------- ---------
EBIT 124,374 71,285
Interest (8,523) (5,940)
----------- ---------
Pre-tax income $ 115,851 $ 65,345
=========== =========
International Homebuilding:
Home sales (settlements) 22,369 $ 11,524
Cost of sales (17,829) (10,233)
Selling, general
& administrative
expense (7,003) (2,600)
Other income (expense), net (776) 442
Minority Interest 380 -
Equity in income of joint venture
operations 2,342 2,000
----------- ---------
Pre-tax income (loss) $ (517) $ 1,133
=========== =========
FINANCIAL SERVICES:
Pre-tax income $ 12,254 $ 6,672
=========== =========
MORTGAGE
ORIGINATIONS:
Origination volume 4,226 3,258
=========== =========
Origination
principal $ 671,800 $ 489,100
=========== =========
CORPORATE:
Pre-tax loss:
Net interest expense $ (9,442) $ (5,649)
Other Corporate
expense, net (5,612) (3,893)
----------- ---------
Total Corporate $ (15,054) $ (9,542)
=========== =========
Certain 2001 classifications have been changed to conform with the 2002
presentation.
Pulte Homes
Business Operating Data
Three Months Ended March 31,
--------- -------
2002 2001
--------- -------
(000's omitted)
HOMEBUILDING UNIT SETTLEMENTS -- PULTE AND AFFILIATES:
Domestic 5,502 3,768
International 1,642 1,774
--------- -------
Total Pulte and Pulte-affiliate settlement units 7,144 5,542
========= =======
HOMEBUILDING REVENUES -- PULTE AND AFFILIATES:
Domestic 1,309,588 805,796
International 46,822 49,932
--------- -------
Total Pulte and Pulte-affiliate revenues 1,356,410 855,728
========= =======
Domestic Homebuilding:
Unit settlements:
Northeast 416 393
Southeast 1,676 1,609
Midwest 702 448
Central 718 632
West 1,990 686
--------- -------
5,502 3,768
========= =======
Unit net new orders:
Northeast 794 532
Southeast 2,230 2,533
Midwest 1,300 1,103
Central 1,284 1,354
West 2,480 933
--------- -------
8,088 6,455
========= =======
Unit backlog:
Northeast 1,209 949
Southeast 3,113 3,065
Midwest 1,973 1,562
Central 1,469 1,536
West 3,500 1,052
--------- -------
11,264 8,164
========= =======
International Homebuilding:
Unit settlements:
Pulte 721 89
Pulte-affiliated entities 921 1,685
--------- -------
1,642 1,774
========= =======