Pultegroup, Inc. · NYSE:PHM

Pultegroup — Q4 2022 Earnings Presentation

21 slides from Pultegroup's earnings presentation, Jan 31, 2023

  1. Slide 1: Q4 2022 Operating & Financial Results

    Q4 2022 Operating & Financial Results January 31, 2023

  2. 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

  3. 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

  4. Slide 4: Q4 2022 Operating & Financial Highlights

    Q4 2022 Operating & Financial Highlights

  5. Slide 5: Q4 2022 Financial Highlights

    Q4 2022 Financial Highlights  Q4 2022 reported earnings per share Earnings Per Share increased 48% over prior year to $3.85 $4.50 Reported Adjusted $4.00  Adjusted EPS of $3.63 excludes: $3.85 – $65 million net pre-tax benefit from adjustments to insurance related $3.50 $3.63 reserves and a $49 mi

  6. Slide 6: Q4 2022 Financial Highlights

    Q4 2022 Financial Highlights  Homebuilding gross margin increased 200 bps Homebuilding Gross Margin 30% to 28.8%  Reported SG&A expense of $351 million, or 28% 28.8% 6.9% of home sale revenues 26.8%  Excluding $65 million net pre-tax benefit from 26% adjustments to insurance related reserves, adj

  7. Slide 7: Q4 2022 Financial Highlights

    Q4 2022 Financial Highlights Unit Backlog 25,000  Q4 net new orders of 3,964 homes 20,000  Net new orders lower by 41% as higher 15,000 18,003 mortgage rates impact buyer demand 10,000 12,169  Q4 cancellation rate of 32%, up from 11% in 5,000 prior year period 0  Net new order value of $2.1 bill

  8. Slide 8: Strategically Managing Land Pipeline

    Strategically Managing Land Pipeline  Adjusting to softer demand, terminated Lots Under Control 250,000 select optioned-lot transactions in Q4 225,000 119,218  Wrote off $31 million of pre-acquisition costs 200,000 102,264 and deposits associated with walking from 21,000 lots and $900 million of f

  9. Slide 9: Continuing to Deliver High Returns

    Continuing to Deliver High Returns  2022 return on equity of 32.9%* Dividends & Share Repurchases ($M)  Repurchased $100 million of stock in Q4 $1,400 bringing full year total to $1.1 billion $1,200 $1,219  In 2022, repurchased 10% of shares outstanding $1,000 $1,045  Ended Q4 with $1.1 billion

  10. Slide 10: Q4 2022 Selected Financial Data

    Q4 2022 Selected Financial Data Three Months Ended December 31, 2022 2021 Change Home Sale Revenues ($ millions) $5,054 $4,220 20% Gross Margin Percentage 28.8% 26.8% 200 bps Reported SG&A as Percent of Home Sale Revenues 6.9% 8.2% -130 bps Adjusted SG&A as Percent of Home Sale Revenues 8.2% 8.7% -5

  11. Slide 11: Q4 2022 Selected Balance Sheet Data

    Q4 2022 Selected Balance Sheet Data December 31, 2022 December 31, 2021 Cash and Equivalents, including $1,095 $1,834 Restricted Cash ($ millions) House and Land Inventory ($ millions) $11,326 $9,048 Notes Payable ($ millions) $2,046 $2,029 Shareholders’ Equity ($ millions) $8,914 $7,490 Debt – to –

  12. Slide 12: Building on Proven Business Platform

    Building on Proven Business Platform

  13. Slide 13: Industry Leading Brand Names

    Industry Leading Brand Names 12 12

  14. Slide 14: Serving a Variety of Price Points

    Serving a Variety of Price Points FY 2022 Closings by Price Point 12% 5% 20% Under $300K $300K - $399K $400K - $499K $500K - $749K 37% $750K and Above 26% 13 13

  15. Slide 15: With a Geographically Diverse Operating Platform

    With a Geographically Diverse Operating Platform SEATTLE PORTLAND 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 BE

  16. 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 &

  17. Slide 17: Allocating Capital Consistent with Our Stated Priorities

    Allocating Capital Consistent with Our Stated Priorities  Invest in the business  2022 land acquisition and development investment of $4.5 billion - Development of existing assets accounted for 57% of 2022 land spend - Expect to slow 2023 land spend to $3.3 billion with 65% going toward developmen

  18. Slide 18: Appendix Non-GAAP Reconciliation

    Appendix Non-GAAP Reconciliation

  19. Slide 19: 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 net income, diluted earnings per share ("EPS"), operating margin, and debt-to-capital ratio. These measures are considered

  20. Slide 20: Operating Margin and Debt-to-Capital Ratios

    Operating Margin Three Months Ended December 31, 2022 2021 Home sale revenues $ 5,053,771 $ 4,220,441 Gross margin (a) $ 1,457,903 28.8 % $ 1,132,684 26.8 % SG&A, as reported $ 350,831 6.9 % $ 344,220 8.2 % Insurance-related adjustments 65,083 1.3 % 22,647 0.5 % Adjusted SG&A $ 415,914 8.2 % $ 366,8

  21. Slide 21: Q4 2022 Financial Results

    —_——_ PULTEGROUP Q4 2022 Financial Results

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