PulteGroup Reports Fourth Quarter 2023 Financial Results
- Net income of $3.28 per share for the fourth quarter
- 57% increase in net new orders
- Home sale revenues of $4.2 billion
- Repurchased 3.6 million common shares for $300 million
- Year-end cash balance of $1.8 billion and a debt-to-capital ratio of 15.9%
- Optimistic outlook for 2024
- None.
Insights
The reported net income decrease from $882 million to $711 million, despite an increase in net new orders, indicates a potential compression in margins or increased costs that could be concerning for profitability. While the home sale gross margin remains robust at 28.9%, the slight dip from 29.4% could reflect rising material costs or labor expenses. The debt-to-capital ratio of 15.9% showcases a strong balance sheet, signaling financial stability and potential resilience to market fluctuations. However, investors should monitor this in conjunction with the company's cash balance to assess liquidity and financial health.
The increase in average sales price of homes, coupled with a decrease in closings compared to the previous year, may suggest a shift in the company's product mix or a change in consumer demand toward higher-priced homes. This could affect the volume of future sales and should be analyzed in the context of market affordability trends. The share repurchase program, with a substantial $1.5 billion increase in authorization, reflects a management strategy focused on shareholder returns, which could be attractive to investors seeking capital appreciation and a signal of confidence in the company's valuation.
The 57% increase in net new orders is a significant indicator of demand and future revenue potential. It is essential to understand the drivers behind this increase, such as whether it is due to an improvement in the macroeconomic environment, lower interest rates, or company-specific factors such as product offerings or marketing strategies. The unit backlog of 12,146 homes with a value of $7.3 billion suggests a strong pipeline that could translate into future revenue stability and growth.
However, the decrease in cancellation rates from 11% to 9% should be evaluated in conjunction with industry benchmarks to determine if this reflects an improvement in consumer confidence or a more aggressive sales approach. The expansion in average community count could indicate strategic growth but also poses risks associated with market saturation and increased competition. Analyzing regional market trends and the company's competitive positioning will be crucial for assessing the sustainability of growth.
As interest rates have a profound impact on the housing market, the observed uptick in buyer activity in response to lower interest rates aligns with economic principles. This relationship underscores the sensitivity of the housing sector to monetary policy and its implications for affordability. The expectation of continued low-interest rates could stimulate sustained demand, but this must be balanced against other economic factors such as employment levels and consumer confidence.
The mention of a strong job market and limited inventory of existing homes provides context for the increased demand PulteGroup is experiencing. However, it's important to consider the potential for economic shifts that could alter these dynamics. For instance, if interest rates were to rise unexpectedly or if there were a downturn in the job market, the current demand could weaken, impacting future sales and revenues. Continuous monitoring of economic indicators will be vital for predicting housing market trends and the company's performance.
-
Net Income of
$3.28 -
Net New Orders Increased
57% to 6,214 Homes -
Closings of 7,615 Homes Drove Home Sale Revenues of
$4.2 Billion -
Home Sale Gross Margin of
28.9% -
Unit Backlog of 12,146 Homes with a Value of
$7.3 Billion -
Repurchased 3.6 Million Common Shares in the Quarter for
$300 Million -
Year End Cash Balance of
$1.8 Billion 15.9% -
Announces
$1.5 Billion
“PulteGroup’s strong fourth quarter financial results complete a record setting year, while the
“As the fourth quarter progressed, we experienced a significant increase in buyer activity as interest rates moved lower, resulting in December being the highest sales month of the quarter. With expectations for interest rates to remain lower in 2024, we are optimistic that improved affordability dynamics will continue attracting buyers into the market.
“After multiple years of variable macroeconomic activity, expectations are that 2024 can be a year of increased homebuying demand given a strong job market, lower interest rates and a limited inventory of existing homes. With a ready supply of homes and lots, I believe PulteGroup is extremely well positioned to capitalize on such market conditions as we seek to grow our business, while delivering strong cash flow and high returns.”
Fourth Quarter Results
For the fourth quarter, home sale revenues totaled
The Company’s home sale gross margin for the fourth quarter was
Net new orders in the fourth quarter increased
The average community count in the fourth quarter increased
The Company’s Financial Services operations reported fourth quarter pre-tax income of
In the fourth quarter, the Company repurchased 3.6 million of its common shares for
The Company ended the year with
In a separate release, the Company announced that its Board of Directors approved a
“Having repurchased almost
A conference call discussing PulteGroup's fourth quarter 2023 results is scheduled for Tuesday, January 30, 2024, at 8:30 a.m. Eastern Time. Interested investors can access the live webcast via PulteGroup's corporate website at www.pultegroup.com.
* The Company's 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.
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 or data security issues; failure to retain key personnel; 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; the effect of cybersecurity incidents and threats; 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, 2022 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.
About PulteGroup
PulteGroup, Inc. (NYSE: PHM), based in
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 |
|||||||||||||||
( |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Homebuilding |
|
|
|
|
|
|
|
||||||||
Home sale revenues |
$ |
4,165,231 |
|
|
$ |
4,961,040 |
|
|
$ |
15,598,707 |
|
|
$ |
15,548,119 |
|
Land sale and other revenues |
|
34,540 |
|
|
|
45,518 |
|
|
|
142,116 |
|
|
|
143,144 |
|
|
|
4,199,771 |
|
|
|
5,006,558 |
|
|
|
15,740,823 |
|
|
|
15,691,263 |
|
Financial Services |
|
93,881 |
|
|
|
72,089 |
|
|
|
320,755 |
|
|
|
311,716 |
|
Total revenues |
|
4,293,652 |
|
|
|
5,078,647 |
|
|
|
16,061,578 |
|
|
|
16,002,979 |
|
|
|
|
|
|
|
|
|
||||||||
Homebuilding Cost of Revenues: |
|
|
|
|
|
|
|
||||||||
Home sale cost of revenues |
|
(2,961,920 |
) |
|
|
(3,503,137 |
) |
|
|
(11,030,206 |
) |
|
|
(10,867,879 |
) |
Land sale and other cost of revenues |
|
(32,139 |
) |
|
|
(29,936 |
) |
|
|
(124,607 |
) |
|
|
(119,906 |
) |
|
|
(2,994,059 |
) |
|
|
(3,533,073 |
) |
|
|
(11,154,813 |
) |
|
|
(10,987,785 |
) |
|
|
|
|
|
|
|
|
||||||||
Financial Services expenses |
|
(50,036 |
) |
|
|
(48,040 |
) |
|
|
(187,280 |
) |
|
|
(180,696 |
) |
Selling, general, and administrative expenses |
|
(308,319 |
) |
|
|
(350,831 |
) |
|
|
(1,312,642 |
) |
|
|
(1,381,222 |
) |
Equity income from unconsolidated entities, net |
|
213 |
|
|
|
48,291 |
|
|
|
4,561 |
|
|
|
50,680 |
|
Gain on debt retirement |
|
301 |
|
|
|
— |
|
|
|
663 |
|
|
|
— |
|
Other income (expense), net |
|
5,066 |
|
|
|
(31,179 |
) |
|
|
37,200 |
|
|
|
(64,398 |
) |
Income before income taxes |
|
946,818 |
|
|
|
1,163,815 |
|
|
|
3,449,267 |
|
|
|
3,439,558 |
|
Income tax expense |
|
(235,825 |
) |
|
|
(281,584 |
) |
|
|
(846,895 |
) |
|
|
(822,241 |
) |
Net income |
$ |
710,993 |
|
|
$ |
882,231 |
|
|
$ |
2,602,372 |
|
|
$ |
2,617,317 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
3.30 |
|
|
$ |
3.86 |
|
|
$ |
11.79 |
|
|
$ |
11.07 |
|
Diluted |
$ |
3.28 |
|
|
$ |
3.85 |
|
|
$ |
11.72 |
|
|
$ |
11.01 |
|
Cash dividends declared |
$ |
0.20 |
|
|
$ |
0.16 |
|
|
$ |
0.68 |
|
|
$ |
0.61 |
|
|
|
|
|
|
|
|
|
||||||||
Number of shares used in calculation: |
|
|
|
|
|
|
|
||||||||
Basic |
|
214,399 |
|
|
|
227,200 |
|
|
|
219,958 |
|
|
|
235,010 |
|
Effect of dilutive securities |
|
1,364 |
|
|
|
902 |
|
|
|
1,205 |
|
|
|
1,156 |
|
Diluted |
|
215,763 |
|
|
|
228,102 |
|
|
|
221,163 |
|
|
|
236,166 |
|
PulteGroup, Inc. |
|||||
Condensed Consolidated Balance Sheets |
|||||
( |
|||||
(Unaudited) |
|||||
|
December 31,
|
|
December 31,
|
||
|
|
|
|
||
ASSETS |
|
|
|
||
|
|
|
|
||
Cash and equivalents |
$ |
1,806,583 |
|
$ |
1,053,104 |
Restricted cash |
|
42,594 |
|
|
41,449 |
Total cash, cash equivalents, and restricted cash |
|
1,849,177 |
|
|
1,094,553 |
House and land inventory |
|
11,795,370 |
|
|
11,326,017 |
Land held for sale |
|
23,831 |
|
|
42,254 |
Residential mortgage loans available-for-sale |
|
516,064 |
|
|
677,207 |
Investments in unconsolidated entities |
|
166,913 |
|
|
146,759 |
Other assets |
|
1,545,667 |
|
|
1,291,572 |
Goodwill |
|
68,930 |
|
|
68,930 |
Intangible assets |
|
56,338 |
|
|
66,875 |
Deferred tax assets |
|
64,760 |
|
|
82,348 |
|
$ |
16,087,050 |
|
$ |
14,796,515 |
|
|
|
|
||
|
|
|
|
||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||
|
|
|
|
||
Liabilities: |
|
|
|
||
Accounts payable |
$ |
619,012 |
|
$ |
565,975 |
Customer deposits |
|
675,091 |
|
|
783,556 |
Deferred tax liabilities |
|
302,155 |
|
|
215,446 |
Accrued and other liabilities |
|
1,645,690 |
|
|
1,685,202 |
Financial Services debt |
|
499,627 |
|
|
586,711 |
Notes payable |
|
1,962,218 |
|
|
2,045,527 |
Total liabilities |
|
5,703,793 |
|
|
5,882,417 |
Shareholders' equity |
|
10,383,257 |
|
|
8,914,098 |
|
$ |
16,087,050 |
|
$ |
14,796,515 |
PulteGroup, Inc. |
|||||||
Consolidated Statements of Cash Flows |
|||||||
( |
|||||||
(Unaudited) |
|||||||
|
|
||||||
|
Year Ended |
||||||
|
December 31, |
||||||
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
2,602,372 |
|
|
$ |
2,617,317 |
|
Adjustments to reconcile net income to net cash from operating activities: |
|
|
|
||||
Deferred income tax expense |
|
104,266 |
|
|
|
106,584 |
|
Land-related charges |
|
43,115 |
|
|
|
66,656 |
|
Gain on debt retirement |
|
(663 |
) |
|
|
— |
|
Depreciation and amortization |
|
80,824 |
|
|
|
70,918 |
|
Equity income from unconsolidated entities |
|
(4,561 |
) |
|
|
(50,680 |
) |
Distributions of earnings from unconsolidated entities |
|
4,564 |
|
|
|
49,151 |
|
Share-based compensation expense |
|
48,200 |
|
|
|
42,989 |
|
Other, net |
|
(758 |
) |
|
|
1,431 |
|
Increase (decrease) in cash due to: |
|
|
|
||||
Inventories |
|
(354,016 |
) |
|
|
(2,256,690 |
) |
Residential mortgage loans available-for-sale |
|
160,934 |
|
|
|
266,310 |
|
Other assets |
|
(290,631 |
) |
|
|
(140,761 |
) |
Accounts payable, accrued and other liabilities |
|
(196,884 |
) |
|
|
(104,759 |
) |
Net cash provided by operating activities |
|
2,196,762 |
|
|
|
668,466 |
|
Cash flows from investing activities: |
|
|
|
||||
Capital expenditures |
|
(92,201 |
) |
|
|
(112,661 |
) |
Investments in unconsolidated entities |
|
(23,403 |
) |
|
|
(64,701 |
) |
Distributions of capital from unconsolidated entities |
|
3,265 |
|
|
|
21,704 |
|
Business acquisition |
|
— |
|
|
|
(10,400 |
) |
Other investing activities, net |
|
(16,756 |
) |
|
|
(5,685 |
) |
Net cash used in investing activities |
|
(129,095 |
) |
|
|
(171,743 |
) |
Cash flows from financing activities: |
|
|
|
||||
Repayments of notes payable |
|
(123,290 |
) |
|
|
(4,856 |
) |
Borrowings under revolving credit facility |
|
— |
|
|
|
2,869,000 |
|
Repayments under revolving credit facility |
|
— |
|
|
|
(2,869,000 |
) |
Financial Services borrowings (repayments), net |
|
(87,084 |
) |
|
|
(39,412 |
) |
Debt issuance costs |
|
(1,572 |
) |
|
|
(11,167 |
) |
Proceeds from liabilities related to consolidated inventory not owned |
|
129,656 |
|
|
|
58,729 |
|
Payments related to consolidated inventory not owned |
|
(76,303 |
) |
|
|
(5,915 |
) |
Share repurchases |
|
(1,000,000 |
) |
|
|
(1,074,673 |
) |
Cash paid for shares withheld for taxes |
|
(11,991 |
) |
|
|
(14,326 |
) |
Dividends paid |
|
(142,459 |
) |
|
|
(144,115 |
) |
Net cash used in financing activities |
|
(1,313,043 |
) |
|
|
(1,235,735 |
) |
Net increase (decrease) |
|
754,624 |
|
|
|
(739,012 |
) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
1,094,553 |
|
|
|
1,833,565 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
1,849,177 |
|
|
$ |
1,094,553 |
|
|
|
|
|
||||
Supplemental Cash Flow Information: |
|
|
|
||||
Interest paid (capitalized), net |
$ |
10,786 |
|
|
$ |
1,797 |
|
Income taxes paid, net |
$ |
784,453 |
|
|
$ |
641,948 |
|
PulteGroup, Inc. |
|||||||||||||||
Segment Data |
|||||||||||||||
( |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
HOMEBUILDING: |
|
|
|
|
|
|
|
||||||||
Home sale revenues |
$ |
4,165,231 |
|
|
$ |
4,961,040 |
|
|
$ |
15,598,707 |
|
|
$ |
15,548,119 |
|
Land sale and other revenues |
|
34,540 |
|
|
|
45,518 |
|
|
|
142,116 |
|
|
|
143,144 |
|
Total Homebuilding revenues |
|
4,199,771 |
|
|
|
5,006,558 |
|
|
|
15,740,823 |
|
|
|
15,691,263 |
|
|
|
|
|
|
|
|
|
||||||||
Home sale cost of revenues |
|
(2,961,920 |
) |
|
|
(3,503,137 |
) |
|
|
(11,030,206 |
) |
|
|
(10,867,879 |
) |
Land sale cost of revenues |
|
(32,139 |
) |
|
|
(29,936 |
) |
|
|
(124,607 |
) |
|
|
(119,906 |
) |
Selling, general, and administrative expenses |
|
(308,319 |
) |
|
|
(350,831 |
) |
|
|
(1,312,642 |
) |
|
|
(1,381,222 |
) |
Equity income from unconsolidated entities |
|
213 |
|
|
|
48,291 |
|
|
|
3,506 |
|
|
|
49,403 |
|
Gain on debt retirement |
|
301 |
|
|
|
— |
|
|
|
663 |
|
|
|
— |
|
Other income (expense), net |
|
5,066 |
|
|
|
(31,179 |
) |
|
|
38,538 |
|
|
|
(64,331 |
) |
Income before income taxes |
$ |
902,973 |
|
|
$ |
1,139,766 |
|
|
$ |
3,316,075 |
|
|
$ |
3,307,328 |
|
|
|
|
|
|
|
|
|
||||||||
FINANCIAL SERVICES: |
|
|
|
|
|
|
|
||||||||
Income before income taxes |
$ |
43,845 |
|
|
$ |
24,049 |
|
|
$ |
133,192 |
|
|
$ |
132,230 |
|
|
|
|
|
|
|
|
|
||||||||
CONSOLIDATED: |
|
|
|
|
|
|
|
||||||||
Income before income taxes |
$ |
946,818 |
|
|
$ |
1,163,815 |
|
|
$ |
3,449,267 |
|
|
$ |
3,439,558 |
|
PulteGroup, Inc. |
|||||||||||
Segment Data, continued |
|||||||||||
( |
|||||||||||
(Unaudited) |
|||||||||||
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
|
Three Months Ended |
|
Year Ended |
||||||||
|
December 31, |
|
December 31, |
||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
|
|
|
|
|
|
|
|
||||
Home sale revenues |
$ |
4,165,231 |
|
$ |
4,961,040 |
|
$ |
15,598,707 |
|
$ |
15,548,119 |
|
|
|
|
|
|
|
|
||||
Closings - units |
|
|
|
|
|
|
|
||||
Northeast |
|
421 |
|
|
588 |
|
|
1,417 |
|
|
1,614 |
Southeast |
|
1,337 |
|
|
1,699 |
|
|
5,201 |
|
|
5,105 |
|
|
1,940 |
|
|
2,088 |
|
|
7,742 |
|
|
6,928 |
Midwest |
|
1,262 |
|
|
1,400 |
|
|
3,955 |
|
|
4,579 |
|
|
1,265 |
|
|
1,568 |
|
|
5,295 |
|
|
5,692 |
West |
|
1,390 |
|
|
1,505 |
|
|
4,993 |
|
|
5,193 |
|
|
7,615 |
|
|
8,848 |
|
|
28,603 |
|
|
29,111 |
Average selling price |
$ |
547 |
|
$ |
561 |
|
$ |
545 |
|
$ |
534 |
|
|
|
|
|
|
|
|
||||
Net new orders - units |
|
|
|
|
|
|
|
||||
Northeast |
|
349 |
|
|
254 |
|
|
1,510 |
|
|
1,300 |
Southeast |
|
1,264 |
|
|
819 |
|
|
5,541 |
|
|
4,535 |
|
|
1,507 |
|
|
1,241 |
|
|
6,893 |
|
|
6,139 |
Midwest |
|
871 |
|
|
581 |
|
|
4,297 |
|
|
3,241 |
|
|
1,073 |
|
|
664 |
|
|
5,143 |
|
|
4,382 |
West |
|
1,150 |
|
|
405 |
|
|
5,196 |
|
|
3,680 |
|
|
6,214 |
|
|
3,964 |
|
|
28,580 |
|
|
23,277 |
Net new orders - dollars |
$ |
3,359,733 |
|
$ |
2,146,813 |
|
$ |
15,244,353 |
|
$ |
13,589,392 |
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
December 31, |
||||||
|
|
|
|
|
2023 |
|
2022 |
||||
Unit backlog |
|
|
|
|
|
|
|
||||
Northeast |
|
|
|
|
|
567 |
|
|
474 |
||
Southeast |
|
|
|
|
|
2,246 |
|
|
1,906 |
||
|
|
|
|
|
|
3,792 |
|
|
4,641 |
||
Midwest |
|
|
|
|
|
1,692 |
|
|
1,350 |
||
|
|
|
|
|
|
1,637 |
|
|
1,789 |
||
West |
|
|
|
|
|
2,212 |
|
|
2,009 |
||
|
|
|
|
|
|
12,146 |
|
|
12,169 |
||
Dollars in backlog |
|
|
|
|
$ |
7,319,714 |
|
$ |
7,674,068 |
||
|
|
|
|
|
|
|
|
||||
PulteGroup, Inc. |
|||||||||||||||
Segment Data, continued |
|||||||||||||||
( |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
MORTGAGE ORIGINATIONS: |
|
|
|
|
|
|
|
||||||||
Origination volume |
|
4,657 |
|
|
|
5,192 |
|
|
|
17,427 |
|
|
|
18,186 |
|
Origination principal |
$ |
1,871,531 |
|
|
$ |
2,095,529 |
|
|
$ |
6,924,910 |
|
|
$ |
7,105,486 |
|
Capture rate |
|
84.6 |
% |
|
|
74.8 |
% |
|
|
81.6 |
% |
|
|
77.6 |
% |
Supplemental Data |
|||||||||||||||
( |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Interest in inventory, beginning of period |
$ |
140,010 |
|
|
$ |
143,669 |
|
|
$ |
137,262 |
|
|
$ |
160,756 |
|
Interest capitalized |
|
30,652 |
|
|
|
33,894 |
|
|
|
126,040 |
|
|
|
130,051 |
|
Interest expensed |
|
(31,584 |
) |
|
|
(40,301 |
) |
|
|
(124,224 |
) |
|
|
(153,545 |
) |
Interest in inventory, end of period |
$ |
139,078 |
|
|
$ |
137,262 |
|
|
$ |
139,078 |
|
|
$ |
137,262 |
|
PulteGroup, Inc.
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
This report contains information about our debt-to-capital ratios. These measures could be considered non-GAAP financial measures under the SEC's rules and should be considered in addition to, rather than as a substitute for, comparable GAAP financial measures. We calculate total net debt by subtracting total cash, cash equivalents, and restricted cash from notes payable to present the amount of assets needed to satisfy the debt. We use the debt-to-capital and net debt-to-capital ratios as indicators of our overall leverage and believe they are useful financial measures in understanding the leverage employed in our operations. We believe that these measures provide investors relevant and useful information for evaluating the comparability of financial information presented and comparing our profitability and liquidity 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 table sets forth a reconciliation of the debt-to-capital ratios (
Debt-to-Capital Ratios |
||||||||
|
|
December 31, |
||||||
|
|
2023 |
|
2022 |
||||
Notes payable |
|
$ |
1,962,218 |
|
|
$ |
2,045,527 |
|
Shareholders' equity |
|
|
10,383,257 |
|
|
|
8,914,098 |
|
Total capital |
|
$ |
12,345,475 |
|
|
$ |
10,959,625 |
|
Debt-to-capital ratio |
|
|
15.9 |
% |
|
|
18.7 |
% |
|
|
|
|
|
||||
Notes payable |
|
$ |
1,962,218 |
|
|
$ |
2,045,527 |
|
Less: Total cash, cash equivalents, and restricted cash |
|
|
(1,849,177 |
) |
|
|
(1,094,553 |
) |
Total net debt |
|
$ |
113,041 |
|
|
$ |
950,974 |
|
Shareholders' equity |
|
|
10,383,257 |
|
|
|
8,914,098 |
|
Total net capital |
|
$ |
10,496,298 |
|
|
$ |
9,865,072 |
|
Net debt-to-capital ratio |
|
|
1.1 |
% |
|
|
9.6 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240130357160/en/
Investors:
Jim Zeumer
(404) 978-6434
jim.zeumer@pultegroup.com
Source: PulteGroup, Inc.
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