Pultegroup, Inc. · NYSE:PHM
Pultegroup — Q1 2022 Earnings Presentation
21 slides from Pultegroup's earnings presentation, Apr 28, 2022
Slide 1: Q1 2022 Operating & Financial Results
Q1 2022 Operating & Financial Results April 28, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes “forward-looking statements.” These statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to s
Slide 3: PulteGroup Call Participants
PulteGroup Call Participants Ryan Bob Jim Jim Marshall O’Shaughnessy Ossowski Zeumer President & CEO Executive Senior Vice Vice President, Vice President President, Investor and CFO Finance Relations 2
Slide 4: Operating & Financial Highlights
Q1 2022 Operating & Financial Highlights
Slide 5: Financial Highlights: Q1 2022 EPS of $1.83
Q1 2022 Financial Highlights EPS Q1 2022 EPS of $1.83 $2.20 Reported Adjusted Higher earnings driven primarily by $2.00 an 18% increase in average sales $1.80 $1.83 price and 350 bps expansion of gross $1.60 margin $1.40 $1.20 $1.28 Q1 2021 reported EPS of $1.13 $1.00 $1.13 - Adjusted EPS of $1
Slide 6: Financial Highlights: Revenue and Gross Margin
Q1 2022 Financial Highlights Home sale revenues increased 18% to 32% Homebuilding Gross Margin $3.1 billion Q1 closings of 6,039 homes is consistent with 30% prior year 28% 29.0% ASP increased 18% to $508,000 Homebuilding gross margin increased 26% 350 bps to 29.0% 25.5% 24% SG&A expense o
Slide 7: Financial Highlights: Orders and Backlog
Q1 2022 Financial Highlights Unit Backlog 25,000 Q1 net new orders of of 7,971 homes 20,000 2021 2022 19,935 20,056 19,845 Net new orders decrease of 19% resulting 15,000 18,966 18,003 from a 7% decline in average community 10,000 count and actions to restrict sales given supply chain issues 5,0
Slide 8: Land Update
Q1 2022 Land Update Invested $1.1 billion in land Lots Under Control 275,000 60% Owned Optioned Option % acquisition & development in Q1 250,000 55% Just over 50% of spend was for 225,000 119,218 122,326 development of existing land assets 200,000 52% of 50% 175,000 Controlled lot position inc
Slide 9: Superior Financial Strength and Flexibility
Superior Financial Strength and Flexibility Dividends & Share TTM return on equity of 29.4%* Repurchases ($M) $1,200 Repurchased $500 million of common shares in Q1 $1,000 $1,045 Repurchased 10.3 million shares, or 4% of $800 shares outstanding, at $48.59 per share Ended Q1 with $1.2 billion
Slide 10: Selected Financial Data
Q1 2022 Selected Financial Data Three Months Ended March 31, 2022 2021 Change Home Sale Revenues ($ millions) $3,070 $2,597 18% Gross Margin as a Percentage of Home Sale Revenues 29.0% 25.5% 350 bps Reported SG&A as Percent of Home Sale Revenues 10.7% 10.5% 20 bps Adjusted SG&A as Percent of Home Sa
Slide 11: Selected Balance Sheet Data
Q1 2022 Selected Balance Sheet Data March 31, 2022 December 31, 2021 Cash and Equivalents, including $1,212 $1,834 restricted cash ($ millions) House and Land Inventory ($ millions) $9,870 $9,048 Notes Payable ($ millions) $2,030 $2,029 Shareholders’ Equity ($ millions) $7,413 $7,490 Debt – to – Cap
Slide 12: Building on Proven Business Platform
Building on Proven Business Platform
Slide 13: Industry Leading Brand Names
Industry Leading Brand Names 12 12
Slide 14: Serving a Variety of Price Points
Serving a Variety of Price Points FY 2021 Closings by Price Point 7% 16% 25% Under $300K $300K - $399K $400K - $499K $500K - $749K $750K and Above 29% 23% 13 13
Slide 15: With a Broad and Balanced Geographic Footprint
With a Broad and Balanced Geographic Footprint SEATTLE BOSTON MINNEAPOLIS NEW HAVEN DETROIT PHILADELPHIA CLEVELAND CHICAGO COLUMBUS SAN FRANCISCO WASHINGTON D.C. INDIANAPOLIS SAN JOSE DENVER LOUISVILLE TRIAD RALEIGH LAS VEGAS CHARLOTTE NASHVILLE WILMINGTON LOS ANGELES MYRTLE BEACH PALM SPRINGS SANTA
Slide 16: With a Differentiated Strategy Focused on Generating Returns and Shareholder Value
With a Differentiated Strategy Focused on Generating Returns and Shareholder Value PulteGroup’s focus on delivering higher returns over the cycle allows for a more balanced capital allocation Option Invest in the business Focus vs. on Own Return Faster Shorter Common Plans Turning Risk Duration VE &
Slide 17: Allocating Capital Consistent with Our Stated Priorities
Allocating Capital Consistent with Our Stated Priorities Invest in the business Expect 2022 land acquisition and development investment of $4.5 to $5.0 billion - Development of existing assets expected to account for more than 50% of 2022 land spend Continue to fund our dividend Payout rate
Slide 18: Appendix Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation
Slide 19: Reconciliation of Non-GAAP Financial Measures
PulteGroup, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited) This report contains information about our operating results reflecting certain adjustments, including net income, diluted earnings per share ("EPS"), operating margin, and debt-to-capital ratio. These measures are considered
Slide 20: Debt-to-Capital Ratios
Debt-to-Capital Ratios March 31, December 31, 2022 2021 Notes payable $ 2,030,108 $ 2,029,043 Shareholders' equity 7,413,264 7,489,515 Total capital $ 9,443,372 $ 9,518,558 Debt-to-capital ratio 21.5 % 21.3 % Notes payable $ 2,030,108 $ 2,029,043 Less: Total cash, cash equivalents, and restricted ca
Slide 21: Financial Results
Q1 2022 Financial Results