Pultegroup, Inc. · NYSE:PHM
Pultegroup — Q4 2021 Earnings Presentation
22 slides from Pultegroup's earnings presentation, Feb 1, 2022
Slide 1: Q4 2021 Operating & Financial Results
Q4 2021 Operating & Financial Results February 1, 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
Q4 2021 Operating & Financial Highlights
Slide 5: Financial Highlights: Q4 EPS
Q4 2021 Financial Highlights Q4 2021 reported EPS of $2.61 EPS $3.00 Adjusted EPS of $2.51 excludes: Reported Adjusted - $23 million net pre-tax benefit from adjustments $2.50 $2.61 to insurance-related reserves and a $9 million $2.51 tax benefit from deferred tax valuation allowance adjustments
Slide 6: Financial Highlights: Home sale revenues and gross margin
Q4 2021 Financial Highlights Home sale revenues increased 38% to $4.2 28% Homebuilding Gross Margin billion 27% Q4 closings increased 26% to 8,611 homes 26.8% ASP increased 10% to $490,000 26% Homebuilding gross margin increased 180 25% 25.0% bps to 26.8% 24% Reported SG&A expense of $344
Slide 7: Financial Highlights: Net new orders and backlog
Q4 2021 Financial Highlights Unit Backlog Net new orders for the quarter were 25,000 2020 2021 20,000 6,796 homes 18,966 20,056 19,845 18,003 15,000 14,962 15,158 Net new orders lower by 4%, driven by 7% 10,000 12,629 13,214 decline in average community count and 5,000 decision to control sales
Slide 8: Land Update
Q4 2021 Land Update Land acquisition & development 250,000 Owned Lots Under Control Optioned Option % 60% investment in Q4 of $1.4 billion 225,000 119,218 55% 200,000 Total 2021 land investment of $4.2 175,000 88,989 billion 52% of Lots 50% 150,000 64,903 Under Controlled lot position increased
Slide 9: Superior Financial Strength and Flexibility
Superior Financial Strength and Flexibility Return on equity of 28%* for FY 2021 Dividends & Share Repurchases ($M) $1,200 Repurchased $283 million of common shares in Q4 $1,000 $1,045 In 2021 repurchased 17.7 million shares, representing $800 a 6% reduction in our shares outstanding, for $897
Slide 10: Selected Financial Data
Q4 2021 Selected Financial Data Three Months Ended December 31, 2021 2020 Change Home Sale Revenues ($ millions) $4,220 $3,062 38% Gross Margin Percentage 26.8% 25.0% 180 bps Reported SG&A as Percent of Home Sale Revenues 8.2% 9.1% -90 bps Adjusted SG&A as Percent of Home Sale Revenues 8.7% 9.7% -10
Slide 11: Selected Balance Sheet Data
Q4 2021 Selected Balance Sheet Data December 31, 2021 December 31, 2020 ($ millions) ($ millions) Cash and Equivalents $1,834 $2,632 (including restricted cash) House and Land Inventory $9,048 $7,722 Notes Payable $2,029* $2,752 Shareholders’ Equity $7,490 $6,570 Debt – to – Capital Ratio 21.3% 29.5
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 % of 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 % for 2021 % for 2021 % of Company SEATTLE Closings 15% BOSTON Revenue 15% NEW HAVEN Lots 13% MINNEAPOLIS DETROIT PHILADELPHIA % of Company CLEVELAND CHICAGO Closings 7% COLUMBUS SAN FRANCISCO WASHINGTON D.C. Revenue 8% INDIANAPOLIS SAN JOSE DENVER LOUI
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 $5.0 billion - Development of existing assets expected to account for more than 50% of 2022 land spend Continue to fund our dividend Payout rate
Slide 18: Appendix Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation
Slide 19: Reconciliation of Non-GAAP Financial Measures
PulteGroup, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited) This report contains information about our operating results reflecting certain adjustments, including net income, diluted earnings per share ("EPS"), operating margin, and debt-to-capital ratio. These measures are considered
Slide 20: Other Reconciliations
Other Reconciliations Three Months Ended December 31, 2021 2020 Home sale revenues S$ 4,220,441 $ 3,062,443 Gross margin (a) $ 1,132,684 26.8% $ 764,434 25.0 % SG&A, as reported S$ 344,220 8.2% $ 279,656 9.1% Insurance-related reserves 22,647 0.5 % 16,319 0.5 % Adjusted SG&A $366,867 8.7% $ 295,975
Slide 21: Net Debt-to-Capital Ratios
Net Debt-to-Capital Ratios Notes payable Shareholders’ equity Total capital Debt-to-capital ratio Notes payable Less: Total cash, cash equivalents, and restricted cash Total net debt Shareholders' equity Total net capital Net debt-to-capital ratio December 31, 2021 2020 S$ 2,029,043 $ 2,752,302 7,48
Slide 22: Financial Results
Q4 2021 Financial Results