Pultegroup, Inc. · NYSE:PHM
Pultegroup — Q2 2022 Earnings Presentation
21 slides from Pultegroup's earnings presentation, Jul 26, 2022
Slide 1: Q2 2022 Operating & Financial Results
Q2 2022 Operating & Financial Results July 26, 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
Q2 2022 Operating & Financial Highlights
Slide 5: Q2 2022 Financial Highlights: EPS
Q2 2022 Financial Highlights Q2 2022 EPS of $2.73 EPS $3.00 Higher earnings driven by record Q2 Reported Adjusted $2.75 homebuilding revenues and 430 bps $2.50 $2.73 expansion of gross margin $2.25 Q2 2021 reported EPS of $1.90 $2.00 $1.75 $1.90 Adjusted EPS of $1.72 excludes a pre- $1.50 $1
Slide 6: Q2 2022 Financial Highlights: Revenue and Gross Margin
Q2 2022 Financial Highlights Home sale revenues increased 18% to 32% Homebuilding Gross Margin $3.8 billion 30.9% ASP increased 19% to $531,000 30% Q2 closings of 7,177 homes comparable with 28% prior year Homebuilding gross margin increased 26% 26.6% 430 bps to 30.9% 24% SG&A expense of $
Slide 7: Q2 2022 Financial Highlights: Orders and Backlog
Q2 2022 Financial Highlights Unit Backlog 25,000 Q2 net new orders of 6,418 homes 20,000 20,056 19,176 Net new orders down 23% as higher 15,000 mortgage rates, reduced affordability and 10,000 lower consumer confidence slowed sales and increased cancellations 5,000 Q2 cancellation rate of 15%,
Slide 8: Land Update
Q2 2022 Land Update Invested $1.1 billion in land Lots Under Control 275,000 60% Owned Optioned Option % acquisition and development 250,000 130,302 55% 58% of spend was for development 225,000 119,218 of existing land assets 200,000 54% of 50% 175,000 Control 243,258 lots with 54% 88,989 Lots
Slide 9: Strong Financials Driving High Returns and Financial Strength
Strong Financials Driving High Returns and Financial Strength TTM return on equity of 31%* Dividends & Share Repurchases ($M) Repurchased $294 million shares in Q2 $1,200 Returned $868 million to shareholders through $1,000 $1,045 dividends and share repo in 1H2022 Ended Q2 with $732 million
Slide 10: Selected Financial Data
Q2 2022 Selected Financial Data Three Months Ended June 30, 2022 2021 Change Home Sale Revenues ($ millions) $3,810 $3,235 18% Gross Margin as a Percentage of Home Sale Revenues 30.9% 26.6% 430 bps Reported SG&A as Percent of Home Sale Revenues 9.2% 8.4% 80 bps Adjusted SG&A as Percent of Home Sale
Slide 11: Selected Balance Sheet Data
Q2 2022 Selected Balance Sheet Data June 30, 2022 December 31, 2021 Cash and Equivalents, including $732 $1,834 Restricted Cash ($ millions) House and Land Inventory ($ millions) $10,729 $9,048 Notes Payable ($ millions) $2,030 $2,029 Shareholders’ Equity ($ millions) $7,745 $7,490 Debt – to – Capit
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 MYRTLE BEACH PALM SPRINGS SANTA
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 (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
Slide 20: Debt-to-Capital Ratios
Debt-to-Capital Ratios June 30, December 31, 2022 2021 Notes payable $ 2,030,112 $ 2,029,043 Shareholders! equity 7,745,216 7,489,515 Total capital $ 9,775,328 $ 9,518,558 Debt-to-capital ratio 20.8 % 21.3 % 19
Slide 21: Financial Results
Q2 2022 Financial Results