Pultegroup, Inc. · NYSE:PHM
Pultegroup — Q2 2019 Earnings Presentation
14 slides from Pultegroup's earnings presentation, Jul 23, 2019
Slide 1: Report on Second Quarter 2019 Operating and Financial Results
Report on Second Quarter 2019 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 Q2 2019 Results
Review of Q2 2019 Results 3
Slide 5: Q2 2019 Financial Highlights
Q2 2019 Financial Highlights Q2 earnings of $0.86 per share Home Sale Revenues ($B) $3.5 Prior year reported earnings of $1.12 2018 2019 per share $3.0 Prior year adjusted earnings of $0.89 $2.5 per share excludes: $2.0 o $38 million of pretax benefit associated with $1.5 insurance adjustments
Slide 6: Q2 2019 Financial Highlights: Net New Orders and Backlog
Q2 2019 Financial Highlights Net new orders increased 7% to Net New Orders 6,792 homes Q1 Q2 Q3 Q4 2018 6,875 6,341 5,350 4,267 Q2 orders benefit from community 2019 6,463 6,792 - - count growth and better sales pace Change - 6% 7% - - Dollar value of net new orders higher by 7% to $2.9 billio
Slide 7: Strategically Investing in the Business
Strategically Investing in the Business Lots Under Control by Buyer Group 40% $473 million invested in land acquisition for Q2 35% Spend includes purchase of 30% American West assets in Las First Time 25% Vegas Move Up o American West deal includes 20% Active Adult purchase of 1,200 lots with an
Slide 8: Balanced Capital Allocation
Balanced Capital Allocation Capital uses in the quarter Routinely Returning Capital Invested $857 million in land acq/dev Share Repurchase Dividends Paid $1,200 to support business growth o Incudes $136 related to American West $1,000 transaction completed in Q2 $114 million returned to shareh
Slide 9: Q2 2019 Selected Financial Data
Q2 2019 Selected Financial Data Three Months Ended June 30, 2019 2018 Home Sale Revenues ($ millions) $2,404 $2,450 Home Sale Gross Margin 23.1% 24.0% Reported Net Income ($ millions) $241 $324 Adjusted Net Income ($ millions) $241 $259 Reported Diluted Earnings Per Share $0.86 $1.12 Adjusted Earnin
Slide 10: Q2 2019 Selected Balance Sheet Data
Q2 2019 Selected Balance Sheet Data June 30, 2019 December 31, 2018 ($ millions) ($ millions) Cash and Equivalents $659 $1,134 (including restricted cash) House and Land Inventory $7,802 $7,253 Notes Payable $2,740 $3,028 Shareholders’ Equity $5,070 $4,818 Debt – to – Total Capital Ratio 35.1% 38.6%
Slide 11: Appendix
Brute 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 selling, general, and administrative expenses ("SG&A"); income tax expense; net income; and diluted earnin
Slide 13: Other Reconciliations
Other Reconciliations Three Months Ended June 30, 2019 2018 Home sale revenues $ 2,403,559 $ 2,450,054 Gross margin (a) $ 555,404 23.1 % $ 587,921 24.0 % SG&A, as reported $ 259,440 10.8 % $ 226,056 9.2 % Adjustments: Insurance adjustments — —% 37,890 1.5 % Adjusted SG&A $ 259,440 10.8 % $ 263,946 1
Slide 14: Second Quarter 2019 Earnings
Second Quarter 2019 Earnings 13