PULTEGROUP, INC. Q1 2024 Operating &
Financial Results
April 23, 2024
Forward-Looking Statements
This 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 serve, to differ materially from those expressed in, or implied by, these statements. You can identify these statements by the fact that they do not relate to matters of a strictly factual or historical nature and generally discuss or relate to forecasts, estimates or other expectations regarding future events. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "plan," "project," "may," "can," "could," "might," "should," "will" and similar expressions identify forward-looking statements, including statements related to any potential impairment charges and the impacts or effects thereof, expected operating and performing results, planned transactions, planned objectives of management, future developments or conditions in the industries in which we participate and other trends, developments and uncertainties that may affect our business in the future.
Such risks, uncertainties and other factors include, among other things: interest rate changes and the availability of mortgage financing; the impact of any changes to our strategy in responding to the cyclical nature of the industry or deteriorations in industry changes or downward changes in general economic or other business conditions, including any changes regarding our land positions and the levels of our land spend; economic changes nationally or in our local markets, including inflation, deflation, changes in consumer confidence and preferences and the state of the market for homes in general; labor supply shortages and the cost of labor; the availability and cost of land and other raw materials used by us in our homebuilding operations; a decline in the value of the land and home inventories we maintain and resulting possible future writedowns of the carrying value of our real estate assets; competition within the industries in which we operate; governmental regulation directed at or affecting the housing market, the homebuilding industry or construction activities, slow growth initiatives and/or local building moratoria; the availability and cost of insurance covering risks associated with our businesses, including warranty and other legal or regulatory proceedings or claims; damage from improper acts of persons over whom we do not have control or attempts to impose liabilities or obligations of third parties on us; weather related slowdowns; the impact of climate change and related governmental regulation; adverse capital and credit market conditions, which may affect our access to and cost of capital; the insufficiency of our income tax provisions and tax reserves, including as a result of changing laws or interpretations; the potential that we do not realize our deferred tax assets; our inability to sell mortgages into the secondary market; uncertainty in the mortgage lending industry, including revisions to underwriting standards and repurchase requirements associated with the sale of mortgage loans, and related claims against us; risks related to information technology failures, data security issues, and the effect of cybersecurity incidents and threats; the impact of negative publicity on sales; failure to retain key personnel; the impairment of our intangible assets; the disruptions associated with the COVID-19 pandemic (or another epidemic or pandemic or similar public threat or fear of such an event), and the measures taken to address it; and other factors of national, regional and global scale, including those of a political, economic, business and competitive nature. See Item 1A - Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 for a further discussion of these and other risks and uncertainties applicable to our businesses. We undertake no duty to update any forward-looking statement, whether as a result of new information, future events or changes in our expectations.
©2024 PulteGroup | 2 |
PulteGroup Participants
Ryan Marshall | Bob O'Shaughnessy |
President & CEO | EVP & CFO |
Jim Ossowski | Jim Zeumer |
SVP, Finance | VP, Investor Relations |
Q1 2024 Operating & Financial Highlights
Q1 2024 Financial Highlights
- Earnings increased 32% over prior year to Q1 record $3.10 per share
- Q1 EPS includes $0.14 per share gain related to JV sale and $0.09 per share insurance benefit
- "Our strong financial performance reflects both favorable demand conditions and our balanced operating model that allows us to more effectively meet the individual needs of first-time,move-up and active-adult consumers," said Ryan Marshall, President & CEO
Earnings Per Share
$3.10
$2.35
$1.83
$1.13
Q1 2021 | Q1 2022 | Q1 2023 | Q1 2024 |
©2024 PulteGroup | 5 |
Q1 2024 Financial Highlights
• Home sale revenues increased |
10% to a Q1 record $3.8B |
Q1 closings of 7,095 homes increased |
11% over prior year period |
Mix of closings in the quarter resulted |
in 1% decrease in average sales price to |
Closings
6,044 6,039 6,394 7,095
Q1 2021 | Q1 2022 | Q1 2023 | Q1 2024 |
Home Sale Revenues ($M)
$538,000 |
$2,554
$3,032
$3,488 $3,820
Q1 2021 | Q1 2022 | Q1 2023 | Q1 2024 |
©2024 PulteGroup | 6 |
Q1 2024 Financial Highlights
- Gross margin increased 50 basis points over prior year to 29.6%
- Q1 gross margin reflects favorable geographic mix and pricing dynamics
- SG&A expense of $358M, or 9.4% of home sale revenues
- Q1 SG&A includes $27M pre-tax insurance benefit
Gross Margin *
29.3% 29.1% 29.6%
25.9%
Q1 2021 | Q1 2022 | Q1 2023 | Q1 2024 |
SG&A *
10.6% 10.9%
9.6% 9.4%
Q1 2021 | Q1 2022 | Q1 2023 | Q1 2024 |
* As a percent of home sale revenues
©2024 PulteGroup | 7 |
Q1 2024 Financial Highlights
• Net new orders increased 14% to 8,379 |
homes |
Net New Orders
YOY increase reflects higher gross orders |
and decrease in cancelation rate |
9,852
7,971 7,354 8,379
⁃ Q1 cancelation rate as a percent of beginning |
period backlog was 10%, down from 13% in |
prior year |
• Unit backlog increased 2% over prior |
year to 13,430 homes |
- Backlog value increased 3% to $8.2B
Q1 2021 | Q1 2022 | Q1 2023 | Q1 2024 |
Unit Backlog
18,966 19,935
13,129 13,430
Q1 2021 | Q1 2022 | Q1 2023 | Q1 2024 |
©2024 PulteGroup | 8 |
Efficiently Investing in Future Growth
- Q1 land investment of $1.1B, of which 60% was for development of existing land assets
- Company remains on track to invest approximately $5B in land acquisition & development in 2024
- Land pipeline of approximately 220,000 lots with 51% held under option.
- 74% of lots approved in Q1 2024 were structured as options
- Long-termtarget is to control 70% of land pipeline via option
Lots Under Control
Owned Optioned
99,739 | 122,326 | 102,827 | 112,541 |
93,954 | 112,216 | 107,528 | 107,001 |
Q1 2021 | Q1 2022 | Q1 2023 | Q1 2024 |
Land Acquisition & Development Spend ($M)
Acquisition | Development | ||
$542 | $491 | $678 | |
$407 | |||
$388 | $527 | $415 | $459 |
Q1 2021 | Q1 2022 | Q1 2023 | Q1 2024 |
©2024 PulteGroup | 9 |
Delivering High Returns While Maintaining Conservative Capital Structure
- Returned $246M to shareholders through share repurchases in Q1
- Repurchased 2.3 million shares at an average price of $106.73
- Since 2013, Company has repurchased approximately 50% of shares outstanding
- Q1 dividend payment of $0.20 per share reflects previously announced 25% increase
- Adjusting for $1.8B of cash on balance sheet at quarter end, net debt-to-capital was 1.7%
Return on Equity *
28% | 33% | ||
24% | 27% | 27% | |
2020 | 2021 | 2022 | 2023 | TTM Q1 2024 |
Debt-to-Capital Ratio
29.5%
21.3% 18.7% 15.9% 15.4%
2020 | 2021 | 2022 | 2023 | Q1 2024 |
- Return on equity is calculated as net income for the trailing twelve months divided by average shareholders' equity, where average shareholders' equity is the sum of ending shareholders' equity balances of the trailing five quarters divided by five.
©2024 PulteGroup | 10 |
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PulteGroup Inc. published this content on 23 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 April 2024 12:18:06 UTC.
