Slide 1: Report on 2018 Second Quarter Operating and Financial Results
Report on 2018 Second 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 Q2 2018 Results
Review of Q2 2018 Results 3
Slide 5: Q2 2018 Financial Highlights
Q2 2018 Financial Highlights ▪ Revenue and operating gains Home Sale Revenues ($B) $3.0 accelerate EPS growth: 2017 2018 $2.5 ✓ Home sale revenues increased 25% to $2.5 billion $2.0 ✓ Closings up 14% to 5,741 homes $1.5 ✓ Reported home sale gross margin was 24.0%, up 60 bps over prior $1.0 year adju
Slide 6: Q2 2018 Financial Highlights: Net New Orders and Backlog
Q2 2018 Financial Highlights ▪ Dollar value of net new $3.5 Value of Net New Orders ($B) 2017 2018 orders increased 3% to $3.0 $2.7 billion $2.5 ▪ Net new orders of 6,341, $2.0 $1.5 comparable with prior $1.0 year $0.5 ▪ Backlog value increased $0.0 Q1 Q2 Q3 Q4 by 17% to $5.2 billion ▪ Unit backlog
Slide 7: Optimizing Land Investments
Optimizing Land Investments ▪ Q2 investment in land 110,000 Lots Owned 8 acquisition totaled $352 100,000 Lots Years Owned 7 million 90,000 ✓ Average size of project ~120 lots 80,000 6 ▪ ~149,000 lots under control 70,000 5 total 60,000 4 50,000 ✓ 40% of lots controlled via option 40,000 3 ✓ Owned l
Slide 8: Strategic Pricing Continues to Benefit Revenues and Profitability
Strategic Pricing Continues to Benefit Revenues and Profitability ▪ Q2 average sales price increased Average Option & Lot 10%, or $37,000, to $427,000 Premium Per Closing $90,000 ✓ Q2 options and lot premiums increased 6% to $79,429 per home $80,000 ▪ Price increases and mix of $70,000 closings supp
Slide 9: Q2 2018 Selected Financial Data
Q2 2018 Selected Financial Data Three Months Ended June 30, 2018 2017 Change Home Sale Revenues ($ millions) $2,450 $1,966 25% Reported Home Sale Gross Margin 24.0% 21.1% 290 bps Adjusted Home Sale Gross Margin 24.0% 23.4% 60 bps Reported SG&A as Percent of Home Sale Revenues 9.2% 11.0% 180 bps Adju
Slide 10: Q2 2018 Selected Balance Sheet Data
Q2 2018 Selected Balance Sheet Data June 30, 2018 December 31, 2017 ($ millions) ($ millions) Cash and Equivalents $402 $306 (including restricted cash) House and Land Inventory $7,500 $7,147 Debt $3,006 $3,007 Shareholders’ Equity $4,527 $4,154 Debt – to – Capitalization 39.9% 42.0% 9
Slide 11: Appendix
Beatie Appendix
Slide 12: 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 gross margin from home sales; selling general, and administrative expenses ("SG&A"); net income; and dilut
Slide 13: Other Reconciliations
Other Reconciliations Other Reconciliations Three Months Ended June 30, 2018 2017 Home sale revenues $ 2,450,054 $ 1,965,641 Gross margin from home sales, as reported $ 587,921 24.0 % $ 415,704 21.1 % Adjustments: Land and community valuation adjustments — —% 31,487 1.6 % Warranty claim — —% 12,106
Slide 14: Second Quarter 2018 Earnings
Second Quarter 2018 Earnings 13