Slide 1: Report on 2018 Third Quarter Operating and Financial Results
Report on 2018 Third Quarter 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 Q3 2018 Results
Review of Q3 2018 Results 3
Slide 5: Q3 2018 Financial Highlights: Home Sale Revenues
Q3 2018 Financial Highlights ▪ Home sale revenues Home Sale Revenues ($B) increased 25% to $2.6 billion ✓ Closings increased 17% to 6,031 homes; ASP up 7% to $427,000 ✓ Home sale gross margin increased 10 bps to 24.0% ✓ SG&A lowered by 180 bps to 9.8% of home sale revenues ✓ Reported net income of $
Slide 6: Q3 2018 Financial Highlights: Net New Orders
Q3 2018 Financial Highlights ▪ Net new orders increase 1% Value of Net New Orders ($B) to 5,350 homes ▪ Value of net new orders up 1% to $2.3 billion ▪ Backlog value of $4.9 billion, up 5% over prior year ▪ Unit backlog increased 3% to 11,164 homes Net New Orders Q1 Q2 Q3 Q4 2017 6,126 6,395 5,300 4
Slide 7: Optimizing Land Investments
Optimizing Land Investments ▪ Land pipeline of ~150,000 Lots Owned lots with 41% controlled via option ✓ Reduced owned lot position to 3.9 years based on TTM closings ▪ Invested $254 million in land acquisition during Q3 ▪ Approved an additional 6,500 lots for purchase ✓ Average project size of ~130
Slide 8: Q3 2018 Selected Financial Data
Q3 2018 Selected Financial Data Three Months Ended September 30, 2018 2017 Change Home Sale Revenues ($ millions) $2,572 $2,056 25% Home Sale Gross Margin 24.0% 23.9% 10 bps SG&A as Percent of Home Sale Revenues 9.8% 11.6% 180 bps Operating Margin 14.2% 12.3% 190 bps Net Income ($ millions) $290 $17
Slide 9: Q3 2018 Selected Balance Sheet Data
Q3 2018 Selected Balance Sheet Data September 30, 2018 December 31, 2017 ($ millions) ($ millions) Cash and Equivalents $759 $306 (including restricted cash) House and Land Inventory $7,489 $7,147 Debt $3,005 $3,007 Shareholders’ Equity $4,729 $4,154 Debt – to – Capitalization 38.9% 42.0% 8
Slide 10: Third Quarter 2018 Earnings
Third Quarter 2018 Earnings 9