Pultegroup, Inc. · NYSE:PHM
Pultegroup — Q3 2022 Earnings Presentation
20 slides from Pultegroup's earnings presentation, Oct 25, 2022
Slide 1: Q3 2022 Operating & Financial Results
Q3 2022 Operating & Financial Results October 25, 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
Q3 2022 Operating & Financial Highlights
Slide 5: Q3 2022 Financial Highlights: Earnings Per Share
Q3 2022 Financial Highlights Q3 2022 earnings per share increased Earnings Per Share 48% over prior year to $2.69 $3.00 $2.75 Higher home sale revenues and a 410-bps $2.50 $2.69 expansion of operating margin drive $2.25 increase in EPS $2.00 $1.75 Home sale revenues increased 16% to $1.82 $1.5
Slide 6: Q3 2022 Financial Highlights: Gross Margin and SG&A
Q3 2022 Financial Highlights Homebuilding gross margin 32% Homebuilding Gross Margin increased 360 bps to 30.1% SG&A expense totaled $350 30% 30.1% million, or 9.1% of home sale 28% revenues Prior year reported SG&A expense 26% 26.5% was $321 million, or 9.6% of home sale revenues 24% 22% 20%
Slide 7: Q3 2022 Financial Highlights: Orders and Backlog
Q3 2022 Financial Highlights Unit Backlog 25,000 Q3 net new orders of 4,924 homes 20,000 19,845 Net new orders were lower by 28% as 15,000 17,053 mortgage rates reached 20-year highs in 10,000 response to Fed rate actions 5,000 Cancellation rate in the quarter increased to 24%, compared with 1
Slide 8: Land Update
Q3 2022 Land Update In response to slowing demand resulting Lots Under Control 275,000 from higher mortgage rates, Company Owned Optioned 250,000 terminated a number of pending land 225,000 transactions in Q3 119,218 116,847 200,000 Company wrote off $24 million of related 50% of 175,000 deposit
Slide 9: Continuing to Deliver High Returns
Continuing to Deliver High Returns TTM return on equity of 32%* Dividends & Share Repurchases ($M) Share repurchase in Q3 of $180 million $1,200 bringing 9-month total to $975 million $1,000 $1,084 $1,045 YTD repurchase totals 9% of outstanding shares $800 Through Sept 2022, returned $1.1 bi
Slide 10: Selected Financial Data
Q3 2022 Selected Financial Data Three Months Ended September 30, 2022 2021 Change Home Sale Revenues ($ millions) $3,840 $3,324 16% Gross Margin as a Percentage of Home Sale Revenues 30.1% 26.5% 360 bps Reported SG&A as Percent of Home Sale Revenues 9.1% 9.6% - 50 bps Financial Services Pre-tax Inco
Slide 11: Selected Balance Sheet Data
Q3 2022 Selected Balance Sheet Data September 30, 2022 December 31, 2021 Cash and Equivalents, including $291 $1,834 Restricted Cash ($ millions) House and Land Inventory ($ millions) $11,773 $9,048 Notes Payable ($ millions) $2,045 $2,029 Shareholders’ Equity ($ millions) $8,164 $7,490 Debt – to –
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 GREENVILLE MYRTLE BEACH PALM SP
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 approximately $4.8 billion - Development of existing assets expected to account for more than 55% of 2022 land spend Continue to fund our dividend Payout
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 debt-to-capital ratios. This measure could be considered a non-GAAP financial measure under the SEC's rules and should be considered in addition to, rather than as a substitute for,
Slide 20: Q3 2022 Financial Results
Q3 2022 Financial Results