Pultegroup, Inc. · NYSE:PHM
Pultegroup — Q4 2023 Earnings Presentation
21 slides from Pultegroup's earnings presentation, Jan 30, 2024
Slide 1: Q4 2023 Operating and Financial Results
Q4 2023 Operating and Financial Results January 30, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements As a cautionary note, except for the historical information contained herein, this presentation contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to a number of risk
Slide 3: PulteGroup Participants
PulteGroup Participants Ryan Marshall President and CEO Bob O’Shaughnessy EVP and CFO Jim Ossowski SVP, Finance Jim Zeumer VP, Investor Relations ©2024 PulteGroup
Slide 4: Q4 2023 Operating & Financial Highlights
Q4 2023 Operating & Financial Highlights
Slide 5: Q4 2023 Financial Highlights
Home Sale Revenues ($M) Q4 2023 Financial Highlights $4,961 $4,165 $4,165 • Q4 net income of $711 million, or $3.28 per share $3,013 • Home sale revenues of $4.2 billion compared with $5.0 billion last year Q4 2020 Q4 2021 Q4 2022 Q4 2023 – Average sales price for Q4 lower by 2% EPS (diluted) from p
Slide 6: Q4 2023 Financial Highlights
Home Sales Gross Margin Q4 2023 Financial Highlights 29.4% 28.9% • Home sale gross margin of 28.9% down 27.2% 50 basis points from prior year 25.4% – Higher margin move-up and active-adult business accounted for 61% of 2023 closings Q4 2020 Q4 2021 Q4 2022 Q4 2023 • SG&A of $308 million, or 7.4% of
Slide 7: Q4 2023 Financial Highlights
Unit Backlog Q4 2023 Financial Highlights 18,003 15,158 • Net new orders increased 57% over 12,169 12,146 prior year to 6,214 homes – Strong demand across all buyer groups as consumers respond to drop in mortgage rates Q4 2020 Q4 2021 Q4 2022 Q4 2023 – Average community count increased 8% Backlog Va
Slide 8: Efficiently Growing our Land Pipeline
Efficiently Growing our Land Pipeline Lots Under Control Owned Optioned • Q4 investment of $551 million for 119,218 102,264 118,115 land acquisition and $770 million for 88,989 development 109,078 108,848 – 2023 land investment of $4.3 billion, 91,363 104,515 expected to increase to $5.0 billion in
Slide 9: Strategic Approach to Capital Allocation
Strategic Approach to Capital Allocation Dividend & Share Repurchase ($M) $1,219 $1,142 $1,045 • Repurchased $1.0 billion of common shares in 2023, including $300 million in Q4 – Company has repurchased almost 50% of outstanding stock since 2013 $301 • Paid out $142 million in dividends in 2023 2020
Slide 10: Delivering High Returns to Shareholders
Delivering High Returns to Cash Flows from Operations ($M) Shareholders $2,197 • Drove cash flow from operations of $2.2 $1,784 billion used to fund: – $4.3 billion in land acquisition and development $1,004 $668 – $1.1 billion returned to shareholders via share repurchases and dividends 2020 2021 2
Slide 11: Q4 2023 Selected Financial Data
Q4 2023 Selected Financial Data Three Months Ended December 31, 2023 2022 Change Home Sale Revenues ($ millions) $4,165 $4,961 -16% Gross Margin Percentage 28.9% 29.4% -50 bps SG&A as Percent of Home Sale Revenues 7.4% 7.1% 30 bps Financial Services Pre-tax Income ($ millions) $44 $24 82% Net Income
Slide 12: Q4 2023 Selected Balance Sheet Data
Q4 2023 Selected Balance Sheet Data December 31, 2023 December 31, 2022 Cash and Equivalents, including Restricted Cash ($ millions) $1,849 $1,095 House and Land Inventory ($ millions) $11,795 $11,326 Notes Payable ($ millions) $1,962 $2,046 Shareholders’ Equity ($ millions) $10,383 $8,914 Debt – to
Slide 13: Supplemental Financial Tables
Supplemental Financial Tables
Slide 14: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures This report contains information about our debt-to-capital ratios. These measures could be considered non-GAAP financial measures under the SEC's rules and should be considered in addition to, rather than as a substitute for, comparable GAAP financial me
Slide 15: Company Profile: Focused on Delivering High Returns
Company Profile: Focused on Delivering High Returns
Slide 16: Balanced and Differentiated Business: Market Diversification
Balanced and Differentiated Business: Market Diversification SEATTLE BOSTON PORTLAND MINNEAPOLIS NEW HAVEN DETROIT PHILADELPHIA CLEVELAND CHICAGO SACRAMENTO COLUMBUS SALT LAKE CITY SAN FRANCISCO WASHINGTON D.C. INDIANAPOLIS SAN JOSE DENVER LOUISVILLE TRIAD RALEIGH LAS VEGAS CHARLOTTE NASHVILLE WILMI
Slide 17: Balanced and Differentiated Business: Brand Strategy
Balanced and Differentiated Business: Brand Strategy ©2024 PulteGroup 17
Slide 18: Balanced and Differentiated Business: Broad Product Offering
Balanced and Differentiated Business: Broad Product Offering 2023 Closings by Buyer Group 2023 Closings by Price Point 13% 6% 25% Under $300K 22% 39% First-Time $300K - $399K Move-up $400K - $499K Active-adult $500K - $749K 36% $750K and Above 23% 36% ©2024 PulteGroup 18
Slide 19: Focused on Generating Returns and Shareholder Value
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 & Should Costing Adjusted Strate
Slide 20: Focused on Delivering High Returns Over the Housing Cycle
Focused on Delivering High Returns Over the Housing Cycle • Drive superior homebuilder operating metrics – Disciplined underwriting process – Differentiated go-to-market strategy using build-to-order and spec-build operating models to more effectively serve diverse buyer groups – More efficient cons
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