PulteGroup Reports Fourth Quarter 2020 Financial Results

  • Reported Net Income of $1.62 Per Share
  • Adjusted Net Income of $1.49 Per Share
  • Net New Orders Increased 24% to 7,056 Homes; Order Value Increased 33% to $3.3 Billion
  • Home Sale Revenues Increased 5% to $3.1 Billion
  • Homebuilding Gross Margin Increased 220 Basis Points to 25.0%
  • Backlog Up 44% to 15,158 Homes with a Value of $6.8 Billion
  • Cash Balance of $2.6 Billion; Debt-to-Total Capitalization Decreased to 29.5%
  • Company Announces Plans to Tender for $300 Million of Outstanding Debt and Exercise the Early Redemption Feature on $426 Million of 2021 Bonds

ATLANTA--()--PulteGroup, Inc. (NYSE: PHM) announced today financial results for its fourth quarter ended December 31, 2020. For the quarter, the Company reported net income of $438 million, or $1.62 per share. Adjusted net income for the period was $404 million, or $1.49 per share, after excluding a $16 million net pre-tax benefit from adjustments to insurance-related reserves, a $22 million pre-tax charge from adjustments to Financial Services reserves, and a tax benefit of $38 million resulting from energy tax credits and deferred tax valuation allowance adjustments recorded in the period. Reported net income for the fourth quarter of 2019 was $336 million, or $1.22 per share. Adjusted net income for the prior year period was $312 million, or $1.14 per share, after excluding a $31 million pre-tax benefit from adjustments to insurance-related reserves.

PulteGroup’s fourth quarter operating and financial results attest to the ongoing strength of the housing market as we generated 24% growth in net new orders, realized a 220 basis point increase in gross margin and generated more than $500 million of operating cash flow in the period,” said Ryan Marshall, PulteGroup President and CEO. “Our fourth quarter and full-year 2020 performance enable PulteGroup to enter 2021 with tremendous momentum supported by our outstanding operating metrics and a backlog of more than 15,000 homes.

Given our strong operating cash flow and $2.6 billion of cash, we have the financial flexibility to allocate capital consistent with our stated priorities of investing in the business, paying our dividend, returning excess funds to shareholders through share repurchases, and the pay down of debt.

The ongoing strength in demand for new homes is broad based and continues to benefit from low mortgage rates, years of underbuilding new homes, a limited supply of homes for sale, and an increasing desire for homeownership and single-family living,” added Marshall. “Beyond these supports, we believe the pandemic has caused a permanent increase in the number of people who will be working from home which has meaningful implications on the sustained need for new homes going forward.”

Fourth Quarter Results

For the fourth quarter, home sale revenues increased 5% over 2019 to $3.1 billion. Higher revenues for the quarter were driven by a 4% increase in average sales price to $446,000, in combination with a 1% increase in closings to 6,860 homes.

Home sale gross margin for the fourth quarter was 25.0%, which represents an increase of 220 basis points over the prior year and is up 50 basis points from the third quarter of 2020.

The Company’s reported fourth quarter SG&A expense of $280 million, or 9.1% of home sale revenues, includes the $16 million net pre-tax benefit from adjustments to insurance-related reserves recorded in the period. Exclusive of this benefit, adjusted SG&A expense for the quarter was $296 million, or 9.7% of home sale revenues. Prior year reported SG&A expense of $262 million, or 8.9% of home sale revenues, included the $31 million pre-tax benefit from adjustments to insurance-related reserves. Excluding this benefit, adjusted SG&A expense for the fourth quarter of 2019 was $293 million, or 10.0% of home sale revenues.

Reflective of the strong demand environment, the Company’s fourth quarter net new orders increased 24% over the prior year to 7,056 homes, while the value of net new orders increased 33% to $3.3 billion. Average community count for the fourth quarter of 2020 was 846, compared with 865 communities last year.

The Company ended the fourth quarter with a unit backlog of 15,158 homes, which is up 44% over the comparable prior year period, valued at $6.8 billion.

The Company’s Financial Services operations reported pre-tax income of $43 million in the fourth quarter, inclusive of the $22 million pre-tax charge relating to reserve adjustments recorded in the period, compared with pre-tax income of $34 million in the prior year. The increase in pre-tax income for the quarter reflects a favorable rate and competitive environment, along with higher loan volumes resulting primarily from an increase in mortgage capture rate. Pulte Mortgage’s capture rate for the fourth quarter was 86%, up from 84% last year.

During the quarter, the Company repurchased 1.7 million of its common shares for $75 million, or an average price of $43.69 per share. For the year, the Company repurchased 4.5 million common shares, or approximately 2% of its outstanding shares, for $171 million, or an average price of $37.58 per share.

At year end, the Company had $2.6 billion of cash and a debt-to-total capitalization of 29.5%, which is down from 33.6% at the end of 2019.

In a separate release issued today, the Company announced a tender offer for $300 million of its 2026 and 2027 senior notes, which it expects to complete by February 26, 2021. The Company has also elected to exercise the early redemption feature, effective February 1, 2021, on its $426 million of senior notes originally scheduled to mature on March 1, 2021.

Our disciplined business practices and strong cash flow generation continue to provide us with outstanding liquidity and financial flexibility, which was recently acknowledged when we received our second investment grade credit rating and became investment grade index eligible,” said Bob O’Shaughnessy. “Upon completion of our plans to pay down $726 million of our debt in the first quarter of this year, our balance sheet and financial flexibility will be further enhanced, allowing us to capitalize on market opportunities that may develop.”

A conference call discussing PulteGroup's fourth quarter 2020 results is scheduled for Thursday, January 28, 2021, at 8:30 a.m. Eastern Time. Interested investors can access the live webcast via PulteGroup's corporate website at www.pultegroupinc.com.

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; competition within the industries in which we operate; the availability and cost of land and other raw materials used by us in our homebuilding operations; the impact of any changes to our strategy in responding to the cyclical nature of the industry, including any changes regarding our land positions and the levels of our land spend; the availability and cost of insurance covering risks associated with our businesses; shortages and the cost of labor; weather related slowdowns; slow growth initiatives and/or local building moratoria; governmental regulation directed at or affecting the housing market, the homebuilding industry or construction activities; uncertainty in the mortgage lending industry, including revisions to underwriting standards and repurchase requirements associated with the sale of mortgage loans; the interpretation of or changes to tax, labor and environmental laws which could have a greater impact on our effective tax rate or the value of our deferred tax assets than we anticipate; 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; legal or regulatory proceedings or claims; our ability to generate sufficient cash flow in order to successfully implement our capital allocation priorities; required accounting changes; terrorist acts and other acts of war; the negative impact of the COVID-19 pandemic on our financial position and ability to continue our Homebuilding or Financial Services activities at normal levels or at all in impacted areas; the duration, effect and severity of the COVID-19 pandemic; the measures that governmental authorities take to address the COVID-19 pandemic which may precipitate or exacerbate one or more of the above-mentioned and/or other risks and significantly disrupt or prevent us from operating our business in the ordinary course for an extended period of time; and other factors of national, regional and global scale, including those of a political, economic, business and competitive nature. See PulteGroup's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and other public filings with the Securities and Exchange Commission (the "SEC") for a further discussion of these and other risks and uncertainties applicable to our businesses. PulteGroup undertakes no duty to update any forward-looking statement, whether as a result of new information, future events or changes in PulteGroup's expectations.

About PulteGroup

PulteGroup, Inc. (NYSE: PHM), based in Atlanta, Georgia, is one of America’s largest homebuilding companies with operations in more than 40 markets throughout the country. Through its brand portfolio that includes Centex, Pulte Homes, Del Webb, DiVosta Homes, American West and John Wieland Homes and Neighborhoods, the company is one of the industry’s most versatile homebuilders able to meet the needs of multiple buyer groups and respond to changing consumer demand. PulteGroup’s purpose is building incredible places where people can live their dreams.

For more information about PulteGroup, Inc. and PulteGroup’s brands, go to pultegroup.com; www.pulte.com; www.centex.com; www.delwebb.com; www.divosta.com; www.jwhomes.com; and www.americanwesthomes.com. Follow PulteGroup, Inc. on Twitter: @PulteGroupNews.

   

PulteGroup, Inc.

Consolidated Results of Operations

($000's omitted, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2020

 

2019

 

2020

 

2019

Revenues:

 

 

 

 

 

 

 

 

Homebuilding

 

 

 

 

 

 

 

 

Home sale revenues

 

$

3,062,443

 

 

$

2,925,288

 

 

$

10,579,896

 

 

$

9,915,705

 

Land sale and other revenues

 

23,975

 

 

21,828

 

 

94,017

 

 

62,821

 

 

 

3,086,418

 

 

2,947,116

 

 

10,673,913

 

 

9,978,526

 

Financial Services

 

105,945

 

 

69,797

 

 

362,169

 

 

234,431

 

Total revenues

 

3,192,363

 

 

3,016,913

 

 

11,036,082

 

 

10,212,957

 

 

 

 

 

 

 

 

 

 

Homebuilding Cost of Revenues:

 

 

 

 

 

 

 

 

Home sale cost of revenues

 

(2,298,008)

 

 

(2,259,131)

 

 

(8,004,823)

 

 

(7,628,700)

 

Land sale and other cost of revenues

 

(22,069)

 

 

(20,484)

 

 

(77,626)

 

 

(56,098)

 

 

 

(2,320,077)

 

 

(2,279,615)

 

 

(8,082,449)

 

 

(7,684,798)

 

 

 

 

 

 

 

 

 

 

Financial Services expenses

 

(63,346)

 

 

(35,906)

 

 

(175,481)

 

 

(130,770)

 

Selling, general, and administrative expenses

 

(279,656)

 

 

(261,545)

 

 

(1,011,442)

 

 

(1,044,337)

 

Goodwill impairment

 

 

 

 

 

(20,190)

 

 

 

Other expense, net

 

(5,534)

 

 

(3,896)

 

 

(17,826)

 

 

(13,476)

 

Income before income taxes

 

523,750

 

 

435,951

 

 

1,728,694

 

 

1,339,576

 

Income tax expense

 

(85,639)

 

 

(100,153)

 

 

(321,855)

 

 

(322,876)

 

Net income

 

$

438,111

 

 

$

335,798

 

 

$

1,406,839

 

 

$

1,016,700

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

Basic

 

$

1.62

 

 

$

1.23

 

 

$

5.19

 

 

$

3.67

 

Diluted

 

$

1.62

 

 

$

1.22

 

 

$

5.18

 

 

$

3.66

 

Cash dividends declared

 

$

0.14

 

 

$

0.12

 

 

$

0.50

 

 

$

0.45

 

 

 

 

 

 

 

 

 

 

Number of shares used in calculation:

 

 

 

 

 

 

 

 

Basic

 

267,561

 

 

270,843

 

 

268,553

 

 

274,495

 

Effect of dilutive securities

 

666

 

 

632

 

 

861

 

 

802

 

Diluted

 

268,227

 

 

271,475

 

 

269,414

 

 

275,297

 

   

PulteGroup, Inc.

Condensed Consolidated Balance Sheets

($000's omitted)

(Unaudited)

   

 

 

December 31,
2020

 

December 31,
2019

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash and equivalents

 

$

2,582,205

 

 

$

1,217,913

 

Restricted cash

 

50,030

 

 

33,543

 

Total cash, cash equivalents, and restricted cash

 

2,632,235

 

 

1,251,456

 

House and land inventory

 

7,721,798

 

 

7,680,614

 

Land held for sale

 

27,962

 

 

24,009

 

Residential mortgage loans available-for-sale

 

564,979

 

 

508,967

 

Investments in unconsolidated entities

 

35,562

 

 

59,766

 

Other assets

 

923,270

 

 

895,686

 

Intangible assets

 

163,425

 

 

124,992

 

Deferred tax assets

 

136,267

 

 

170,107

 

 

 

$

12,205,498

 

 

$

10,715,597

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

Accounts payable

 

$

511,321

 

 

$

435,916

 

Customer deposits

 

449,474

 

 

294,427

 

Deferred tax liabilities

 

103,548

 

 

 

Accrued and other liabilities

 

1,407,043

 

 

1,435,461

 

Financial Services debt

 

411,821

 

 

326,573

 

Notes payable

 

2,752,302

 

 

2,765,040

 

Total liabilities

 

5,635,509

 

 

5,257,417

 

Shareholders' equity

 

6,569,989

 

 

5,458,180

 

 

 

$

12,205,498

 

 

$

10,715,597

 

   

PulteGroup, Inc.

Consolidated Statements of Cash Flows

($000's omitted)

(Unaudited)

   

 

 

Year Ended

 

 

December 31,

 

 

2020

 

2019

Cash flows from operating activities:

 

 

 

 

Net income

 

$

1,406,839

 

 

$

1,016,700

 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

Deferred income tax expense

 

137,598

 

 

105,438

 

Land-related charges

 

20,305

 

 

27,101

 

Goodwill impairment

 

20,190

 

 

 

Depreciation and amortization

 

66,081

 

 

53,999

 

Share-based compensation expense

 

32,843

 

 

28,368

 

Loss on debt retirements

 

 

 

4,927

 

Other, net

 

(1,112)

 

 

1,155

 

Increase (decrease) in cash due to:

 

 

 

 

Inventories

 

2,988

 

 

(237,741)

 

Residential mortgage loans available-for-sale

 

(56,732)

 

 

(48,261)

 

Other assets

 

(46,307)

 

 

(16,668)

 

Accounts payable, accrued and other liabilities

 

201,649

 

 

140,984

 

Net cash provided by operating activities

 

1,784,342

 

 

1,076,002

 

Cash flows from investing activities:

 

 

 

 

Capital expenditures

 

(58,354)

 

 

(58,119)

 

Investments in unconsolidated entities

 

(753)

 

 

(9,515)

 

Distributions of capital from unconsolidated entities

 

27,939

 

 

214

 

Business acquisitions

 

(83,251)

 

 

(163,724)

 

Other investing activities, net

 

6,472

 

 

6,458

 

Net cash used in investing activities

 

(107,947)

 

 

(224,686)

 

Cash flows from financing activities:

 

 

 

 

Repayments of notes payable

 

(65,267)

 

 

(309,985)

 

Borrowings under revolving credit facility

 

700,000

 

 

 

Repayments under revolving credit facility

 

(700,000)

 

 

 

Financial Services borrowings (repayments), net

 

85,248

 

 

(21,841)

 

Stock option exercises

 

111

 

 

6,399

 

Share repurchases

 

(170,676)

 

 

(274,333)

 

Cash paid for shares withheld for taxes

 

(14,853)

 

 

(11,450)

 

Dividends paid

 

(130,179)

 

 

(122,350)

 

Net cash used in financing activities

 

(295,616)

 

 

(733,560)

 

Net increase

 

1,380,779

 

 

117,756

 

Cash, cash equivalents, and restricted cash at beginning of period

 

1,251,456

 

 

1,133,700

 

Cash, cash equivalents, and restricted cash at end of period

 

$

2,632,235

 

 

$

1,251,456

 

 

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

 

Interest paid (capitalized), net

 

$

3,057

 

 

$

5,605

 

Income taxes paid, net

 

$

264,248

 

 

$

137,119

 

   

PulteGroup, Inc.

Segment Data

($000's omitted)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2020

 

2019

 

2020

 

2019

HOMEBUILDING:

 

 

 

 

 

 

 

 

Home sale revenues

 

$

3,062,443

 

 

$

2,925,288

 

 

$

10,579,896

 

 

$

9,915,705

 

Land sale and other revenues

 

23,975

 

 

21,828

 

 

94,017

 

 

62,821

 

Total Homebuilding revenues

 

3,086,418

 

 

2,947,116

 

 

10,673,913

 

 

9,978,526

 

 

 

 

 

 

 

 

 

 

Home sale cost of revenues

 

(2,298,008)

 

 

(2,259,131)

 

 

(8,004,823)

 

 

(7,628,700)

 

Land sale cost of revenues

 

(22,069)

 

 

(20,484)

 

 

(77,626)

 

 

(56,098)

 

Selling, general, and administrative expenses

 

(279,656)

 

 

(261,545)

 

 

(1,011,442)

 

 

(1,044,337)

 

Goodwill impairment

 

 

 

 

 

(20,190)

 

 

 

Other expense, net

 

(5,534)

 

 

(3,549)

 

 

(17,775)

 

 

(13,130)

 

Income before income taxes

 

$

481,151

 

 

$

402,407

 

 

$

1,542,057

 

 

$

1,236,261

 

 

 

 

 

 

 

 

 

 

FINANCIAL SERVICES:

 

 

 

 

 

 

 

 

Income before income taxes

 

$

42,599

 

 

$

33,544

 

 

$

186,637

 

 

$

103,315

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED:

 

 

 

 

 

 

 

 

Income before income taxes

 

$

523,750

 

 

$

435,951

 

 

$

1,728,694

 

 

$

1,339,576

 

   

PulteGroup, Inc.

Segment Data, continued

($000's omitted)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

 

Home sale revenues

 

$

3,062,443

 

 

$

2,925,288

 

 

$

10,579,896

 

 

$

9,915,705

 

 

 

 

 

 

 

 

 

 

Closings - units

 

 

 

 

 

 

 

 

Northeast

 

524

 

 

487

 

 

1,522

 

 

1,443

 

Southeast

 

1,019

 

 

1,067

 

 

4,108

 

 

3,982

 

Florida

 

1,479

 

 

1,459

 

 

5,496

 

 

5,045

 

Midwest

 

1,087

 

 

1,091

 

 

3,553

 

 

3,583

 

Texas

 

1,263

 

 

1,366

 

 

4,747

 

 

4,528

 

West

 

1,488

 

 

1,352

 

 

5,198

 

 

4,651

 

 

 

6,860

 

 

6,822

 

 

24,624

 

 

23,232

 

Average selling price

 

$

446

 

 

$

429

 

 

$

430

 

 

$

427

 

 

 

 

 

 

 

 

 

 

Net new orders - units

 

 

 

 

 

 

 

 

Northeast

 

464

 

 

322

 

 

1,886

 

 

1,562

 

Southeast

 

1,092

 

 

956

 

 

4,583

 

 

4,237

 

Florida

 

1,803

 

 

1,316

 

 

6,844

 

 

5,462

 

Midwest

 

1,054

 

 

827

 

 

4,212

 

 

3,721

 

Texas

 

1,337

 

 

1,094

 

 

5,950

 

 

4,886

 

West

 

1,306

 

 

1,176

 

 

5,800

 

 

5,109

 

 

 

7,056

 

 

5,691

 

 

29,275

 

 

24,977

 

Net new orders - dollars

 

$

3,257,290

 

 

$

2,450,095

 

 

$

12,837,272

 

 

$

10,615,363

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

2020

 

2019

Unit backlog

 

 

 

 

 

 

 

 

Northeast

 

 

 

 

 

953

 

 

589

 

Southeast

 

 

 

 

 

2,340

 

 

1,865

 

Florida

 

 

 

 

 

3,654

 

 

2,306

 

Midwest

 

 

 

 

 

2,199

 

 

1,540

 

Texas

 

 

 

 

 

3,053

 

 

1,850

 

West

 

 

 

 

 

2,959

 

 

2,357

 

 

 

 

 

 

 

15,158

 

 

10,507

 

Dollars in backlog

 

 

 

 

 

$

6,793,182

 

 

$

4,535,805

 

 

 

 

 

 

 

 

 

 

   

PulteGroup, Inc.

Segment Data, continued

($000's omitted)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2020

 

2019

 

2020

 

2019

MORTGAGE ORIGINATIONS:

 

 

 

 

 

 

 

 

Origination volume

 

5,231

 

 

4,802

 

 

18,433

 

 

15,821

 

Origination principal

 

$

1,800,512

 

 

$

1,534,416

 

 

$

6,075,132

 

 

$

4,976,973

 

Capture rate

 

86.3

%

 

84.1

%

 

86.4

%

 

82.4

%

   
   

Supplemental Data

($000's omitted)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

 

Interest in inventory, beginning of period

 

$

201,145

 

 

$

228,562

 

 

$

210,383

 

 

$

227,495

 

Interest capitalized

 

39,933

 

 

40,191

 

 

159,575

 

 

164,114

 

Interest expensed

 

(47,669)

 

 

(58,370)

 

 

(176,549)

 

 

(181,226)

 

Interest in inventory, end of period

 

$

193,409

 

 

$

210,383

 

 

$

193,409

 

 

$

210,383

 

   

PulteGroup, Inc.
Reconciliation of Non-GAAP Financial Measures
(Unaudited)

This report contains information about our operating results reflecting certain adjustments, including net income, diluted earnings per share, and operating margin. These measures are considered non-GAAP financial measures under the SEC's rules and should be considered in addition to, rather than as a substitute for, the comparable GAAP financial measures as measures of our profitability. We believe that reflecting these adjustments provides investors relevant and useful information for evaluating the comparability of financial information presented and comparing our profitability to other companies in the homebuilding industry. Although other companies in the homebuilding industry report similar information, the methods used may differ. We urge investors to understand the methods used by other companies in the homebuilding industry to calculate these measures and any adjustments thereto before comparing our measures to those of such other companies.

The following tables set forth a reconciliation of the non-GAAP financial measures to the GAAP financial measures that management believes to be most directly comparable ($000's omitted):

Reconciliation of Adjusted Net Income and Adjusted EPS

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

December 31,

 

Results of Operations Classification

 

2020

 

2019

 

 

 

 

 

 

Net income, as reported

 

 

$

438,111

 

 

$

335,798

 

Adjustments to income before income taxes:

 

 

 

 

 

Insurance-related reserves

SG&A

 

(16,319)

 

 

(31,099)

 

Financial Services reserves

Financial Services expense

 

22,000

 

 

*

Income tax effect of the above items

Income tax expense

 

(1,392)

 

 

7,672

 

Income tax adjustments

Income tax expense

 

(38,297)

 

 

*

Adjusted net income

 

 

$404,103

 

 

$312,371

 

 

 

 

 

 

 

EPS (diluted), as reported

 

 

$

1.62

 

 

$

1.22

 

Adjusted EPS (diluted)

 

 

$

1.49

 

 

$

1.14

 

 

 

 

 

 

 

*Item not meaningful for the period presented

 

 

 

 

 

Other Reconciliations

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

December 31,

 

 

2020

 

2019

Home sale revenues

 

$

3,062,443

 

 

 

$

2,925,288

 

 

 

 

 

 

 

 

 

Gross margin (a)

 

$

764,434

 

25.0

%

 

$

666,157

 

22.8

%

 

 

 

 

 

 

 

SG&A, as reported

 

$

279,656

 

9.1

%

 

$

261,545

 

8.9

%

Insurance-related reserves

 

16,319

 

0.5

%

 

31,099

 

1.1

%

Adjusted SG&A

 

$

295,975

 

9.7

%

 

$

292,644

 

10.0

%

 

 

 

 

 

 

 

Operating margin, as reported (b)

 

 

15.8

%

 

 

13.8

%

Adjusted operating margin (c)

 

 

15.3

%

 

 

12.8

%

 

 

 

 

 

 

 

*Item not meaningful for the period presented

(a) Gross margin represents home sale revenues less home sale cost of revenues

(b) Operating margin represents gross margin less SG&A

(c) Adjusted operating margin represents gross margin less adjusted SG&A

 

Contacts

Investors:
Jim Zeumer
(404) 978-6434
jim.zeumer@pultegroup.com

Contacts

Investors:
Jim Zeumer
(404) 978-6434
jim.zeumer@pultegroup.com