Pulte Homes Announces Record First Quarter Results.BLOOMFIELD Bloomfield. 1 Town (1990 pop. 19,483), Hartford co., N Conn., a suburb of Hartford, in a tobacco and dairy region; settled c.1642, inc. 1835. Helicopter parts are made there. 2 City (1990 pop. 45,061), Essex co., NE N.J. HILLS, Mich. -- Pulte Homes Pulte Homes, Inc (NYSE: PHM) is a Bloomfield Hills, MI based company founded by Bill Pulte. Pulte is the third largest (by units) builder of homes and residential community developers in the United States according to Builder Magazine's"Builder 100", and is the nation's , Inc. (NYSE NYSE See: New York Stock Exchange :PHM) --Earnings from Continuing Operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the Increases 22% to Q1 Record $1.01 Per Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. Share --Consolidated Revenues Climb 18% to a Record $3 Billion --Homebuilding Settlement Revenues Increase 17% to $2.9 Billion; Closings Up 7% to 8,602 Homes --Q1 Sale of Foreign Banking Investment Generates Pretax Income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. of $31.6 Million --Pulte Homes Upgraded to "BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. " by Standard & Poor's Pulte Homes, Inc. (NYSE:PHM) announced today record financial results for its first quarter ended March 31, 2006. First quarter income from continuing operations was a record $262.6 million, an increase of 21% over prior year first quarter income of $217.5 million. First quarter earnings from continuing operations of $1.01 per diluted share represents an increase of 22% over prior year earnings from continuing operations of $.83 per diluted share. "We continue to implement initiatives in support of our core business strategies: market share expansion through diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. , operational excellence, people development and financial discipline," said Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a J. Dugas, Jr., President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Pulte Homes. "By focusing on these key business drivers, Pulte Homes delivered solid Q1 operating and financial results, while ending the quarter with a strong balance sheet and well positioned land pipeline. Based on our Q1 results and expectations that a soft landing is unfolding for the U.S. housing industry, we continue to target 2006 earnings of $6.00 to $6.25 per diluted share." For the quarter, Pulte's consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenues were $3 billion, an increase of 18% over prior year revenues of $2.5 billion. First quarter revenues from homebuilding settlements increased 17% to $2.9 billion. Higher revenues for the period were the result of a 7% increase in closings to 8,602 homes, combined with a 9% increase in average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. to $336,000. The higher average selling price resulted from favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. changes in the mix of houses closed combined with price increases realized during the quarter. First quarter homebuilding pretax income increased 5% to $377.6 million, compared with prior year first quarter homebuilding pretax income of $359.6 million. Land sales and related gross profit in the first quarter increased to $25.9 million and $4.8 million, respectively, compared with $24.2 million and $3.4 million, respectively, in the prior year. Land sales are an important part of Pulte Homes' overall land management strategy, but sales can fluctuate quarter-to-quarter depending upon the timing of individual land transactions. Net new home orders for the quarter were $3.7 billion (representing 10,725 homes), a decrease of 4% compared with prior year orders of $3.8 billion (representing 12,067 homes). The Company's ending backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. was valued at a record $7.1 billion, compared with a value of $6.5 billion last year. The Company's financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. operations reported first quarter pretax income of $49.3 million, compared with prior year pretax income of $10.1 million. Financial services pretax income for the period benefited from a 7% increase in originations to 8,091 loans, with a value of $1.7 billion. In addition, first quarter results reflect a gain of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $31.6 million from the previously announced sale by Pulte Mortgage LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control of its investment in a Mexico-based mortgage-banking company. Subsequent to the close of Pulte's first quarter, the Company also announced that Standard & Poor's Ratings Services Ratings Service A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. raised its corporate credit rating on Pulte Homes' senior notes to 'BBB' from 'BBB-'. The outlook was revised to stable from positive. In discussing the reasons for the ratings change, S&P said, "The upgrade acknowledges Pulte's leading market position in the consolidating homebuilding industry, a lowly low·ly adj. low·li·er, low·li·est 1. Having or suited for a low rank or position. 2. Humble or meek in manner. 3. Plain or prosaic in nature. adv. 1. leveraged balance sheet, and ample liquidity." "We are very pleased with this ratings upgrade from S&P and the recognition of Pulte's improved financial performance," said Roger A. Cregg, Executive Vice President and Chief Financial Officer of Pulte Homes. "Financial discipline, along with market share growth, operational excellence and people development, remain at the core of Pulte's operating philosophy." A conference call discussing Pulte's first quarter results and its recent ratings upgrade will be held Thursday Thursday: see week. , April 27, 2006 at 8:30 a.m. Eastern Time, and web cast live via Pulte.com. Interested investors can access the call via the Company's home page at www.pulte.com. Certain statements in this release constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements involve known risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by the forward-looking statements. Such factors include, among other things, (1) general economic and business conditions; (2) interest rate changes and the availability of mortgage financing; (3) the relative stability of debt and equity markets; (4) competition; (5) the availability and cost of land and other raw materials used by the Company in its homebuilding operations; (6) the availability and cost of insurance covering risks associated with our business; (7) shortages and the cost of labor; (8) weather related slowdowns; (9) slow growth initiatives and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. local building moratoria; (10) governmental regulation, including the interpretation of tax, labor and environmental laws; (11) changes in consumer confidence and preferences; (12) required accounting changes; (13) terrorist acts and other acts of war Tom Clancy's Op-Center: Acts of War is a technothriller by Jeff Rovin Plot introduction The mobile Regional Operations Center (ROC) in Turkey investigates a dam blown up by Kurdish terrorists. ; and (14) other factors over which the Company has little or no control. All forward-looking statements made are made as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and the risk that actual results will differ materially from expectations will increase with the passage of time. See our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Annual Report to Shareholders for the year ended December December: see month. 31, 2005 and our other public filings with the Securities and Exchange Commission for a further discussion of these and other risks and uncertainties applicable to our business. Pulte undertakes no duty to update any forward-looking statement whether as a result of new information, future events or changes in Pulte's expectations. About Pulte Homes Pulte Homes, Inc., (NYSE:PHM), based in Bloomfield Hills, Mich., is a FORTUNE 150 company with operations in 53 markets and 27 states. In 2005, the company delivered 45,630 homes in the U.S. and generated consolidated revenues of $14.7 billion. During its 56-year history, the company has constructed more than 450,000 homes. In 2005, Pulte Homes received the most awards in the J.D. Power and Associates New Home-Builder Customer Satisfaction Study(sm), marking the sixth-straight year Pulte achieved this distinction among America's largest homebuilding companies. Under its Del Webb Delbert E. Webb (May 17 1899 - July 4 1974) was an American construction magnate, real estate developer and sports-team owner who is significant for founding and developing the retirement community of Sun City, Arizona. brand, Pulte is the nation's largest builder of active adult communities for people age 55 and better. Its DiVosta brand is renowned in Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and for its Built Solid(TM) building system and distinctive master-planned communities featuring a town-center concept. Pulte Mortgage LLC is a nationwide lender LENDER, contracts. He from whom a thing is borrowed. 2. The contract of loan confers rights, and imposes duties on the lender. 1. The lender has the right to revoke the loan at his mere pleasure; 9 Cowen, R. 687; 8 Johns. Rep. 432; 1 T. R. 480; 2 Campb. Rep. and offers Pulte customers a wide variety of loan products and superior customer service. Websites: www.pulte.com; www.delwebb.com; www.divosta.com
Pulte Homes, Inc.
Condensed Consolidated Results
Of Operations
(000's omitted, except per share data)
(Unaudited)
Three Months Ended
March 31,
-----------------------
2006 2005
----------- -----------
CONSOLIDATED RESULTS:
Revenues:
Homebuilding $2,914,752 $2,486,294
Financial Services 44,857 30,276
Other non-operating 2,967 1,248
----------- -----------
Total Revenues $2,962,576 $2,517,818
=========== ===========
Pretax income (loss):
Homebuilding 377,583 359,569
Financial Services 49,344 10,084
Other non-operating (9,383) (22,756)
----------- -----------
Income from continuing operations before
income taxes 417,544 346,897
Income taxes (154,899) (129,350)
----------- -----------
Income from continuing operations $262,645 $217,547
Income from discontinued operations - 695
----------- -----------
Net income $262,645 $218,242
=========== ===========
EARNINGS PER SHARE -
ASSUMING DILUTION:
Income from continuing operations $1.01 $.83
Income from discontinued operations - -
----------- -----------
Net income $1.01 $.83
=========== ===========
Shares used in per share calculations 260,738 262,753
=========== ===========
Pulte Homes, Inc.
Condensed Consolidated Balance Sheets
($000's omitted)
March 31, December 31, March 31,
2006 2005 2005
(Unaudited) (Unaudited)
------------ ------------ ------------
ASSETS
Cash and equivalents $121,013 $1,002,268 $346,652
Unfunded settlements 85,488 156,663 74,352
House and land inventory 9,791,302 8,756,093 7,924,147
Land held for sale 313,958 257,724 225,408
Land, not owned, under option
agreements 59,938 76,671 134,061
Residential mortgage loans
available-for-sale 521,577 1,038,506 408,074
Investment in unconsolidated
entities 246,479 301,613 309,321
Goodwill 375,937 307,693 307,693
Intangible assets, net 125,142 127,204 133,392
Other assets 1,062,182 1,023,739 1,038,007
------------ ------------ ------------
$12,703,016 $13,048,174 $10,901,107
============ ============ ============
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Accounts payable, accrued and
other liabilities $2,467,467 $2,584,060 $2,167,584
Unsecured short-term
borrowings 24,500 - -
Collateralized short-term
debt, recourse solely to
applicable subsidiary assets 447,022 893,001 338,671
Income taxes 165,770 219,504 98,739
Deferred income tax liability 28,051 7,740 15,791
Senior notes and subordinated
notes 3,386,882 3,386,527 3,510,455
------------ ------------ ------------
Total Liabilities 6,519,692 7,090,832 6,131,240
Shareholders' Equity 6,183,324 5,957,342 4,769,867
------------ ------------ ------------
$12,703,016 $13,048,174 $10,901,107
============ ============ ============
Pulte Homes, Inc.
Segment Data
($000's omitted)
(Unaudited)
Three Months Ended
March 31,
-----------------------
2006 2005
----------- -----------
HOMEBUILDING:
Home sales (settlements) $2,888,834 $2,462,109
Land sales 25,918 24,185
----------- -----------
Homebuilding Revenue 2,914,752 2,486,294
Home cost of sales (2,225,966) (1,856,468)
Land cost of sales (21,143) (20,759)
Selling, general & administrative expense (284,749) (254,431)
Other income (expense), net (5,311) 4,933
----------- -----------
Pretax income $377,583 $359,569
=========== ===========
FINANCIAL SERVICES:
Pretax income $49,344 $10,084
=========== ===========
OTHER NON-OPERATING:
Pretax loss:
Net interest income (expense) $1,090 $(13,747)
Other expense, net (10,473) (9,009)
----------- -----------
Total Other non-operating $(9,383) $(22,756)
=========== ===========
Pulte Homes, Inc.
Business Operating Data
($000's omitted)
(Unaudited)
Three Months Ended
March 31,
-----------------------
2006 2005
----------- -----------
Homebuilding settlement revenues $2,888,834 $2,462,109
=========== ===========
Unit settlements:
Northeast 716 538
Southeast 2,504 2,331
Midwest 804 901
Central 1,430 926
West 3,148 3,323
----------- -----------
8,602 8,019
=========== ===========
Average selling price $336 $307
=========== ===========
Unit net new orders:
Northeast 728 1,028
Southeast 3,375 3,717
Midwest 1,320 1,519
Central 1,728 1,620
West 3,574 4,183
----------- -----------
10,725 12,067
=========== ===========
Unit net new orders - dollars $3,683,000 $3,833,000
=========== ===========
Unit backlog:
Northeast 1,605 1,973
Southeast 6,536 6,691
Midwest 1,903 1,895
Central 2,515 1,771
West 7,381 7,634
----------- -----------
19,940 19,964
=========== ===========
Dollars in backlog $7,096,000 $6,525,000
=========== ===========
Pulte Homes, Inc.
Business Operating Data, continued
($000's omitted)
(Unaudited)
Three Months Ended
March 31,
-----------------------
2006 2005
----------- -----------
MORTGAGE ORIGINATIONS:
Origination volume 8,091 7,592
=========== ===========
Origination principal $1,744,200 $1,489,400
=========== ===========
Capture rate percentage 89.3% 88.7%
=========== ===========
Pulte Homes, Inc.
Supplemental Information
($000's omitted)
(Unaudited)
Three Months Ended
March 31,
-------------------
2006 2005
--------- ---------
Interest expense:
Homebuilding (included in home cost of sales) $41,169 $30,544
Financial Services 5,301 2,801
Other non-operating 1,877 14,995
--------- ---------
Total interest expense $48,347 $48,340
========= =========
Depreciation & amortization $18,363 $13,733
========= =========
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