Pultegroup, Inc. · NYSE:PHM
Pultegroup — Q4 2019 Earnings Presentation
16 slides from Pultegroup's earnings presentation, Jan 28, 2020
Slide 1: Report on Fourth Quarter 2019
fi Report on Fourth Quarter 2019 PulteGroup 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 a © ee he § awe = PVs Ab db Ryan Bob Marshall O’Shaughnessy Bearcat Pines a President and Executive Senior Vice Vice President, CEO Vice President President, Investor and CFO Finance Relations
Slide 4: Review of Q4 2019 Results
Review of Q4 2019 Results
Slide 5: Q4 2019 Financial Highlights
Q4 2019 Financial Highlights = Reported Q4 earnings of $1.22 per share; adjusted earnings of $1.14 per share v Adjusted earnings excludes $31 million pre-tax benefit from an insurance reserve adjustment Home Sale Revenues ($B) 2018 m 2019 v Prior year reported earnings of $0.84 per share; adjusted e
Slide 6: Q4 2019 Financial Highlights
Q4 2019 Financial Highlights Unit Backlog 2018 m2019 = Net new orders increased 33% 4.00 to 5,691 homes ¥ Absorption pace up 27% = Net new order value increased 35% to $2.5 billion = Unit backlog increased 20% to 10,507 homes ¥ Backlog value increased 18% to Qi Q2 Q3 Q4 $4.5 billion © tn os Qi Q2 Q3
Slide 7: Balanced and Efficient Land Pipeline
Balanced and Efficient Land Pipeline = Q4 land acq. & development __,., investment of $771 million 40% @istTime Move Up Active Adult 35% v FY 2019 land acq. & dev. spend 30% of $3.0 billion - v Approved 29,000 lots in 2019; 15% average community size less ee than 160 lots oy = 158,000 lots under con
Slide 8: Financial Strength and Flexibility
Financial Strength and Flexibility = Debt-to-total capital ratio ; 1,200 lower by 500 bps to 33.6% mShare Repurchase ™ Dividends Paid ¥ $1.2 billion of cash and net debt- $1,000 to-total capital ratio of 21.7% = In 2019, returned $397 $800 million to shareholders through dividends & share repurchase
Slide 9: Q4 2019 Selected Financial Data
Q4 2019 Selected Financial Data Three Months Ended December 31, 2019 2018 Home Sale Revenues (§$ millions) $2,925 $2,885 Home Sale Gross Margin 22.8% 21.5% Adjusted Home Sale Gross Margin 22.8% 23.8% Reported Net Income ($ millions) $336 $238 Reported Diluted Earnings Per Share $1.22 $0.84 Adjusted
Slide 10: Q4 2019 Selected Balance Sheet Data
Q4 2019 Selected Balance Sheet Data OO December 31, 2019 December 31, 2018 ($ millions) ($ millions) Cash and Equivalents (including restricted cash) h2n whi House and Land Inventory $7,681 $7,253 Notes Payable $2,765 $3,028 Shareholders’ Equity $5,458 $4,818 Debt — to — Total Capital Ratio 33.6% 38
Slide 11: Acquisition of Innovative Construction Group (ICG)
Acquisition of Innovative Construction Group (ICG) Based in Jacksonville, FL, ICG is a leading off-site solutions provider Comprehensive framing solutions include design services, manufactured wall panels, roof trusses and floor systems, and onsite installation Acquisition builds on PulteGroup’s com
Slide 12: Appendix
Appendix
Slide 13: 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 cost of revenues, selling general, and administrative expenses, income before income taxes, income tax expe
Slide 14: Other Reconciliations ($000's omitted)
Other Reconciliations ($000’s omitted) [ Other Reconciliations Three Months Ended December 31, 2019 2018 Home sale revenues $ 2,925,288 $ 2,884,557 Gross margin, as reported $ 666,157 22.8% $ 619,853 21.5% Land impairments * * 66,911 2.3% Adjusted gross margin $ 666,157 22.8% §$ 686,764 23.8% SG&A,
Slide 15: Net Debt-to-Total Capital Ratio
Net Debt-to-Total Capital Ratio ($000’s omitted) December 31, 2019 2018 Notes payable $2,765,040 $3,028,066 Shareholders’ equity 5,458,180 4,817,782 Total capital $8,223,220 $7,845,848 Debt-to-capital ratio 33.6% 38.6% Notes payable $2,765,040 $3,028,066 Less: Total cash, cash equivalents, and restr
Slide 16: Fourth Quarter 2019 Earnings
Bieulte i, @ She | i, 1 a ae i & no a — 4 70 = . 2] Fourth Quarter 2019 Earnings