Pultegroup, Inc. · NYSE:PHM

Pultegroup — Q2 2020 Earnings Presentation

18 slides from Pultegroup's earnings presentation, Jul 23, 2020

  1. Slide 1: Q2 2020 Operating & Financial Results and Update on COVID-19

    Q2 2020 Operating & Financial Results and Update on COVID-19 July 23, 2020

  2. 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

  3. 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

  4. Slide 4: Operating & Financial Highlights

    Q2 2020 Operating & Financial Highlights

  5. Slide 5: Financial Highlights

    Q2 2020 Financial Highlights  Q2 reported earnings of $1.29  Home sale gross margin per share increased 80 bps to 23.9%  Q2 adjusted earnings of $1.15  Gross margin up 20 bps per share up 34% over prior year sequentially from Q1 2020  Adjusted to exclude $61 million pre-  SG&A expense of $197

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

    Q2 2020 Financial Highlights  Net new orders decreased 4% to 16,000 Unit Backlog 2019 2020 6,522 homes  Orders improved as quarter progressed 12,000 following initial impact of COVID-19 pandemic 8,000  June orders up 50% over prior year 4,000  Value of net new orders totaled $2.7 billion 0 Q1 Q2

  7. Slide 7: Maintaining Disciplined Land Investment

    Maintaining Disciplined Land Investment Lots Under Control by Buyer Group  Q2 2020 land acq. & development 50% 1st Time Move Up Active Adult investment of $452 million 40% 36% 36% 34% 34% 35% 33% 34% 34% 31% 32% 32% 30%  Land investment slowed in Q2 in 30% response to pandemic 20%  Land spend exp

  8. Slide 8: Liquidity and Balance Sheet Strength

    Liquidity and Balance Sheet Strength  Quarter end cash balance of $1.7 billion During Q2, Company repaid $700 million borrowed on revolving credit facility in March 2020 in response to pandemic Q2 debt-to-total capital ratio of 32.1%; down from 35.1% in Q2 2019 Net debt-to-capital ratio of 15.5%

  9. Slide 9: Selected Financial Data

    Q2 2020 Selected Financial Data Three Months Ended June 30, 2020 2019 Change Home Sale Revenues ($ millions) $2,472 $2,404 3% Gross Margin Percentage 23.9% 23.1% 80 bps SG&A Percent of Home Sale Revenues 8.0% 10.8% - 280 bps Adjusted SG&A Percent of Home Sale Revenues 10.0% 10.8% - 80 bps Financial

  10. Slide 10: Selected Balance Sheet Data

    Q2 2020 Selected Balance Sheet Data June 30, 2020 December 31, 2019 ($ millions) ($ millions) Cash and Equivalents $1,698 $1,251 (including restricted cash) House and Land Inventory $7,585 $7,681 Notes Payable $2,771 $2,765 Shareholders’ Equity $5,852 $5,458 Debt – to – Total Capital Ratio 32.1% 33.

  11. Slide 11: Update on COVID-19 Impacts & Response

    Q2 2020 Update on COVID-19 Impacts & Response

  12. Slide 12: Company Provides Update on Impacts of COVID-19

    Company Provides Update on Impacts of COVID-19  Following late-March collapse in demand caused by pandemic, housing sales accelerated as Q2 progressed  Drivers of demand recovery included:  Historically low interest rates  Limited supply of existing home inventory available for sale  Pent-up de

  13. Slide 13: Company Provides Update on Impacts of COVID-19 (cont'd)

    Company Provides Update on Impacts of COVID-19 (cont’d)  Current state of PulteGroup operations:  Sales centers reopened with on-site staff to serve all consumers o Continuing to leverage virtual sales capabilities  Construction deemed essential service in most markets, so limited disruptions in

  14. Slide 14: Company Provides Update on Impacts of COVID-19 (cont'd)

    Company Provides Update on Impacts of COVID-19 (cont’d)  Responding to strong rebound in housing demand:  Increasing investment in land acquisition and development to ensure future lot supply o Completing transactions on deals which had been purposefully delayed  Increasing production of sold and

  15. Slide 15: Appendix: Non-GAAP Reconciliation

    Appendix Non-GAAP Reconciliation

  16. Slide 16: Reconciliation of Non-GAAP Financial Measures

    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 earnings per share ("EP

  17. Slide 17: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures (Unaudited) Three Months Ended June 30, 2020 2019 Home sale revenues $ 2,472,029 $ 2,403,559 Gross margin (a) $ 591,820 23.9 % $ 555,404 23.1 % SG&A, as reported $ 196,858 8.0 % $ 259,440 10.8 % Adjustments: Insurance adjustments 60,662 2.5 % * * Severan

  18. Slide 18: Financial Results and Update on COVID-19

    Q2 2020 Financial Results and Update on COVID-19

PulteGroup — Q2 2020 Earnings Presentation on 6ix