Pultegroup, Inc. · NYSE:PHM
Pultegroup — Q1 2021 Earnings Presentation
19 slides from Pultegroup's earnings presentation, Apr 27, 2021
Slide 1: Q1 2021 Operating & Financial Results
Q1 2021 Operating & Financial Results April 27, 2021
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: Significant Market Opportunity After Years of Underbuilding
Significant Market Opportunity After Years of Underbuilding Housing Starts (000) Estimate housing need at 1.5 million starts annually Single Family Multi-Family Freddie Mac estimates the need for 2,200 nearly 4 million new homes to meet 2,000 buyer demand 1,800 1,600 Impact of pandemic is incr
Slide 5: Limited Inventory of New and Existing Homes
Limited Inventory of New and Existing Homes New Houses For Sale (000) Total House Inventory 400 2,000,000 350 1,800,000 1,600,000 300 1,400,000 250 1,200,000 200 1,000,000 800,000 150 600,000 100 400,000 50 200,000 0 0 Jan 2019 Jun 2019 Nov 2019 Apr 2020 Sep 2020 Feb 2021 Jan 2019 Jun 2019 Jan 2020
Slide 6: New Homes Better Suited to Meet Buyer Needs
New Homes Better Suited to Meet Buyer Needs Impact of pandemic on consumer needs – Dedicated office space – Place for schooling and study – Technology upgrades – Whole-house WiFi – Antimicrobial surfaces – Enhanced air and water filtration – Touchless faucets – Expanded storage options 5
Slide 7: A Differentiated Strategy Focused on Generating High Returns and Shareholder Value
A Differentiated Strategy Focused on Generating High 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 8: Operating & Financial Highlights
Q1 2021 Operating & Financial Highlights
Slide 9: Financial Highlights
Q1 2021 Financial Highlights Q1 reported earnings of $1.13 per Home sale revenues increased 17% to share; adjusted earnings of $1.28 $2.6 billion per share Home closings increased 12% to 6,044 homes Earnings adjusted to exclude: ASP increased 4% to $430,000, as company realized higher pric
Slide 10: Financial Highlights
Q1 2021 Financial Highlights Net new orders increased 25,000 Unit Backlog 2020 2021 31% to 9,852 homes 20,000 Value of net new orders 15,000 increased 42% to $4.6 billion 10,000 Unit backlog of 18,966 homes 5,000 valued at $8.8 billion 0 Q1 Q2 Q3 Q4 Net New Orders Q1 Q2 Q3 Q4 2020 7,495 6,522 8
Slide 11: Land Update
Q1 2021 Land Update Lots Under Control Q1 2021 land acq. & dev. investment 225,000 Owned Optioned 200,000 of $795 million 175,000 150,000 Targeting 2021 land investment of $3.7 125,000 billion 100,000 75,000 193,693 lots under control at quarter 50,000 end with 51% held via option 25,000 0 C
Slide 12: Continuing to Strengthen Our Financial Foundation
Continuing to Strengthen Our Financial Foundation Dividends & Share Repurchases ($M) Quarter end cash balance of $1.6 billion $500 $400 Q1 debt-to-capital of 23.3%; down from $300 prior year’s 29.5% $200 Company paid down $726 million of debt $100 $0 in the quarter 2018 2019 2020 Q1 2021 Rep
Slide 13: Selected Financial Data
Q1 2021 Selected Financial Data Three Months Ended March 31 2021 2020 Change Home Sale Revenues ($ millions) $2,597 $2,222 17% Gross Margin Percentage 25.5% 23.7% 180 bps SG&A Percent of Home Sale Revenues 10.5% 11.9% (140 bps) Adjusted SG&A Percent of Home Sale Revenues 10.9% 11.9% (100 bps) Financ
Slide 14: Selected Balance Sheet Data
Q1 2021 Selected Balance Sheet Data March 31, 2021 December 31, 2020 ($ millions) ($ millions) Cash and Equivalents $1,644 $2,632 (including restricted cash) House and Land Inventory $7,975 $7,722 Notes Payable $2,032 $2,752 Shareholders’ Equity $6,685 $6,570 Debt – to – Capital Ratio 23.3% 29.5% Ne
Slide 15: Appendix: Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation
Slide 16: 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 17: Adjusted Operating Margin
Adjusted Operating Margin Three Months Ended March 31, 2021 2020 Home sale revenues $ 2,596,510 $ 2,221,503 Gross margin (a) $ 660,875 25.5 % $ 526,638 23.7 % SG&A, as reported $ 271,686 10.5 % $ 263,669 11.9 % Insurance benefit 10,382 0.4 % — —% Adjusted SG&A $ 282,068 10.9 % $ 263,669 11.9 % Opera
Slide 18: Debt-to-Capital Ratios
Debt-to-Capital Ratios March 31, December 31, 2021 2020 Notes payable $ 2,031,937 $ 2,752,302 Shareholders' equity 6,685,274 6,569,989 Total capital $ 8,717,211 $ 9,322,291 Debt-to-capital ratio 23.3% 29.5% Notes payable $ 2,031,937 $ 2,752,302 Less: Total cash, cash equivalents, and restricted cash
Slide 19: Financial Results
Q1 2021 Financial Results