PulteGroup, Inc. · NYSE:PHM

PulteGroup — Q4 2019 Earnings Presentation

16 slides from PulteGroup's earnings presentation, January 2020

  1. Slide 1: Report on Fourth Quarter 2019 Operating and Financial Results

    Report on Fourth Quarter 2019 Operating and Financial Results

  2. 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

  3. 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

  4. Slide 4: Review of Q4 2019 Results

    Review of Q4 2019 Results 3

  5. Slide 5: Q4 2019 Financial Highlights

    Q4 2019 Financial Highlights  Reported Q4 earnings of $1.22 per Home Sale Revenues ($B) share; adjusted earnings of $1.14 $3.5 2018 2019 per share $3.0  Adjusted earnings excludes $31 million $2.5 pre-tax benefit from an insurance reserve $2.0 adjustment  Prior year reported earnings of $0.84 per

  6. Slide 6: Q4 2019 Financial Highlights: Net New Orders and Backlog

    Q4 2019 Financial Highlights  Net new orders increased 33% 14,000 Unit Backlog 2018 2019 to 5,691 homes 12,000  Absorption pace up 27% 10,000  Net new order value increased 8,000 6,000 35% to $2.5 billion 4,000  Unit backlog increased 20% to 2,000 10,507 homes 0 Q1 Q2 Q3 Q4  Backlog value incre

  7. Slide 7: Balanced and Efficient Land Pipeline

    Balanced and Efficient Land Pipeline  Q4 land acq. & development 45% Lots Under Control by Buyer Group 1st Time Move Up Active Adult investment of $771 million 40% 35%  FY 2019 land acq. & dev. spend 30% 25% of $3.0 billion 20%  Approved 29,000 lots in 2019; 15% 10% average community size less 5%

  8. Slide 8: Financial Strength and Flexibility

    Financial Strength and Flexibility  Debt-to-total capital ratio $1,200 Returning Capital to Shareholders lower by 500 bps to 33.6% Share Repurchase Dividends Paid  $1.2 billion of cash and net debt- $1,000 to-total capital ratio of 21.7%  In 2019, returned $397 $800 million to shareholders $600 t

  9. Slide 9: Q4 2019 Selected Financial Data

    Q4 2019 Selected Financial Data Three Months Ended December 31, 2019 2018 Home Sale Revenues ($ millions) $2,925 $2,885 Home Sale Gross Margin 22.8% 21.5% Adjusted Home Sale Gross Margin 22.8% 23.8% Reported Net Income ($ millions) $336 $238 Reported Diluted Earnings Per Share $1.22 $0.84 Adjusted N

  10. Slide 10: Q4 2019 Selected Balance Sheet Data

    Q4 2019 Selected Balance Sheet Data December 31, 2019 December 31, 2018 ($ millions) ($ millions) Cash and Equivalents $1,251 $1,134 (including restricted cash) House and Land Inventory $7,681 $7,253 Notes Payable $2,765 $3,028 Shareholders’ Equity $5,458 $4,818 Debt – to – Total Capital Ratio 33.6%

  11. Slide 11: Acquisition of Innovative Construction Group (ICG)

    Acquisition of Innovative Construction Group (ICG)  Based in Jacksonville, FL, ICG is a leading off-site solutions provider  Comprehensive framing solutions include design services, manufactured wall panels, roof trusses and floor systems, and onsite installation  Acquisition builds on PulteGroup

  12. Slide 12: Appendix

    Appendix 11

  13. Slide 13: 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 cost of revenues, selling general, and administrative expenses, income before income taxes, income tax expe

  14. Slide 14: Other Reconciliations ($000's omitted)

    Other Reconciliations ($000’s omitted) Other Reconciliations Three Months Ended December 31, 2019 2018 Home sale revenues $ 2,925,288 $ 2,884,557 Gross margin, as reported $ 666,157 22.8% $ 619,853 21.5% Land impairments * * 66,911 2.3% Adjusted gross margin $ 666,157 22.8% $ 686,764 23.8% SG&A, as

  15. Slide 15: Net Debt-to-Total Capital Ratio

    Net Debt-to-Total Capital Ratio ($000’s omitted) December 31, 2019 2018 Notes payable $ 2,765,040 $ 3,028,066 Shareholders' equity 5,458,180 4,817,782 Total capital $ 8,223,220 $ 7,845,848 Debt-to-capital ratio 33.6% 38.6% Notes payable $ 2,765,040 $ 3,028,066 Less: Total cash, cash equivalents, and

  16. Slide 16: Fourth Quarter 2019 Earnings

    Fourth Quarter 2019 Earnings 15

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