Slide 1: Report on 2018 Fourth Quarter Operating and Financial Results
Report on 2018 Fourth Quarter Operating and Financial Results
Slide 2: Forward-Looking Statements
Forward-Looking Statements This press release 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
Slide 3: PulteGroup Call Participants
PulteGroup Call Participants Ryan Bob Jim Jim Marshall O’Shaughnessy Ossowski Zeumer President and Executive Senior Vice Vice President, CEO Vice President President, Investor and CFO Finance Relations 2
Slide 4: Review of Q4 2018 Results
Review of Q4 2018 Results 3
Slide 5: Q4 2018 Financial Highlights
Q4 2018 Financial Highlights ▪ Reported net income of $0.84 per Home Sale Revenues ($B) $3.5 share 2017 2018 $3.0 ✓ Adjusted net income increased 31% $2.5 over prior year to $1.11 per share $2.0 ▪ Home sale revenues increased 6% $1.5 to $2.9 billion $1.0 ✓ ASP increased 5% to $430,000; $0.5 closings
Slide 6: Q4 2018 Financial Highlights: Net New Orders and Backlog
Q4 2018 Financial Highlights ▪ Net new orders of 4,267 $3.5 Value of Net New Orders ($B) 2017 2018 homes, down 11% $3.0 ✓ Net new order value of $1.8 billion $2.5 $2.0 ▪ Unit backlog down 3% to $1.5 8,722 homes $1.0 ✓ Backlog value of $3.8 billion $0.5 $0.0 Q1 Q2 Q3 Q4 Net New Orders Q1 Q2 Q3 Q4 201
Slide 7: Developing a More Efficient Land Pipeline
Developing a More Efficient Land Pipeline ▪ ~150,000 lots under control, 110,000 Lots Owned 8 with 40% held via option 100,000 Lots Years Owned 7 ✓ Owned lot position down to 3.9 90,000 years 80,000 6 ▪ Invested $335 million in 70,000 5 land acquisition during Q4; 60,000 4 6,400 lots approved 50,000
Slide 8: Q4 2018 Financial Highlights: Returning Capital
Q4 2018 Financial Highlights ▪ Company ended Q4 with $1.1 $1,200 Routinely Returning Capital billion of cash Share Repurchase Dividends Paid ▪ Repurchased $122 million of $1,000 common shares $800 ✓ $295 million of shares repurchased in 2018 $600 ▪ Debt-to-total capital ratio $400 lowered to 38.6% f
Slide 9: Q4 2018 Selected Financial Data
Q4 2018 Selected Financial Data Three Months Ended December 31, 2018 2017 Change Home Sale Revenues ($ millions) $2,885 $2,717 6% Reported Home Sale Gross Margin 21.5% 21.6% - 10 bps Adjusted Home Sale Gross Margin 23.8% 23.8% - Reported Net Income ($ millions) $238 $77 209% Reported Earnings Per Sh
Slide 10: Q4 2018 Selected Balance Sheet Data
Q4 2018 Selected Balance Sheet Data December 31, 2018 December 31, 2017 ($ millions) ($ millions) Cash and Equivalents $1,134 $306 (including restricted cash) House and Land Inventory $7,253 $7,147 Notes Payable $3,028 $3,007 Shareholders’ Equity $4,818 $4,154 Debt – to – Total Capital Ratio 38.6% 4
Slide 11: Appendix
Pruttecroup Appendix
Slide 12: Reconciliation of Non-GAAP Financial Measures (Unaudited)
PulteGroup, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited) This report contains information about our operating results reflecting certain adjustments, including: adjustments to gross margin from home sales; selling general, and administrative expenses ("SG&A"); net income; and dilut
Slide 13: Other Reconciliations
Other Reconciliations ($000’s omitted) Three Months Ended December 31, 2018 2017 Home sale revenues $ 2,884,557 $ 2,717,031 Gross margin, as reported $ 619,853 21.5 % $ 588,100 21.6 % Land impairments 66,911 2.3 % 57,466 2.1 % Adjusted gross margin $ 686,764 23.8 % $ 645,566 23.8 % SG&A, as reported
Slide 14: Net Debt-to-Capital Ratio Reconciliation
Net Debt-to-Capital Ratio Reconciliation ($000’s omitted) 13
Slide 15: Fourth Quarter 2018 Earnings
Fourth Quarter 2018 Earnings 14