Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries PulteGroup Reports Third Quarter 2022 Financial Results By: PulteGroup, Inc. via Business Wire October 25, 2022 at 06:30 AM EDT Earnings Increased 48% to $2.69 Per Share Home Sale Revenues Increased 16% to $3.8 Billion Homebuilding Gross Margin Expanded by 360 Basis Points to 30.1% Net New Orders of 4,924 Homes with a Value of $2.8 Billion Unit Backlog Totaled 17,053 Homes; Backlog Value Increased 3% to $10.6 Billion Repurchased 2% of Outstanding Common Shares for $180 Million PulteGroup, Inc. (NYSE: PHM) announced today financial results for its third quarter ended September 30, 2022. For the quarter, the Company reported net income of $628 million, or $2.69 per share. In the prior year, the Company reported net income of $476 million, or $1.82 per share. “Reflective of the strong demand conditions that existed earlier this year, PulteGroup’s third quarter financial results include a 16% increase in revenues and a 410 basis point expansion in the Company’s operating margin,” said Ryan Marshall, PulteGroup President and CEO. “These gains helped us to deliver a 48% increase in earnings per share, while allowing us to continue returning funds to shareholders as we repurchased $180 million of stock in the quarter.” “While we reported significant growth in our third quarter earnings, demand clearly slowed in the period as dramatically higher interest rates created financial and psychological hurdles for potential homebuyers,” said Marshall. “In response to today’s more challenging market conditions, we continue to adjust our sales, construction and investment practices as we work to turn inventory and balance our housing starts to appropriately match the pace of sales.” Third Quarter Results Home sale revenues for the third quarter increased 16% over the prior year to $3.8 billion. Higher revenues for the period were driven by a 15% increase in the average sales price of homes closed to $545,000, along with a 1% increase in closings to 7,047 homes. In the third quarter, the Company’s home sale gross margin was 30.1%, an increase of 360 basis points over the prior year gross margin of 26.5%. The Company’s homebuilding SG&A expense for the period was $350 million, or 9.1% of home sale revenues. SG&A expense for the prior year period was $321 million, or 9.6 % of home sale revenues. Net new orders for the third quarter decreased 28% from the prior year to 4,924 homes. The value of net new orders in the third quarter was $2.8 billion. The Company’s cancelation rate in the third quarter was 24%, up from 10% in the prior year period and 15% in the second quarter of 2022. In the third quarter, the Company operated out of an average of 823 communities, compared with an average community count of 768 in the prior year period. The Company’s unit backlog at the end of the third quarter was 17,053 homes, which is a decrease of 14% from the prior year. Backlog value at the end of the third quarter was $10.6 billion, which is an increase of 3% over the comparable prior year period. Given changing industry dynamics resulting primarily from Federal Reserve actions to raise interest rates, PulteGroup continues to reassess all pending transactions prior to completing the purchase of the underlying land asset. As a result of this ongoing review process, in the third quarter the Company elected to terminate a number of pending land transactions and wrote off $24 million of deposits and preacquisition expenses associated with the deals. The write-off of these costs is recorded in the Other expense, net line of the income statement. “For the past several years, we have systematically increased our use of land options with the dual objectives of enhancing returns and helping to mitigate market risks,” said Bob O’Shaughnessy, Executive Vice President and CFO. “With today’s more challenging market conditions, in the third quarter we chose to walk from certain options tied to future land investment where returns no longer met required performance metrics.” Pre-tax income for the Company's financial services operations was $28 million, down from $49 million last year. The decrease in pre-tax income for the period reflects both a reduction in loan volumes and the more competitive pricing environment that has existed for much of 2022. The reduction in loan volumes for the quarter was driven, in part, by a decline in capture rate to 77% compared with 85% last year. Pre-tax income for the Company’s third quarter was $811 million, an increase of 31% over the prior year. Income tax expense for the Company’s third quarter was $183 million, or an effective tax rate of 22.6%. The Company’s effective tax rate benefitted from federal energy efficient home credits recognized in the period resulting from the extension of such credits by the Inflation Reduction Act enacted into law in August. During the third quarter, PulteGroup repurchased 4.4 million, or 2% of its common shares for $180 million, at an average price of $41.20 per share. The Company ended the quarter with a debt-to-capital ratio of 22.5%. A conference call discussing PulteGroup's third quarter 2022 results is scheduled for Tuesday, October 25, 2022, 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; including as it relates to our ability to take pricing actions to offset rising expenses; 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, 2021, 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 Statements of Operations ($000's omitted, except per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Revenues: Homebuilding Home sale revenues $ 3,840,449 $ 3,324,483 $ 10,720,364 $ 9,156,371 Land sale and other revenues 30,658 63,085 97,626 123,321 3,871,107 3,387,568 10,817,990 9,279,692 Financial Services 72,709 91,482 239,627 288,632 Total revenues 3,943,816 3,479,050 11,057,617 9,568,324 Homebuilding Cost of Revenues: Home sale cost of revenues (2,685,596 ) (2,443,074 ) (7,498,027 ) (6,754,204 ) Land sale and other cost of revenues (26,314 ) (47,483 ) (89,971 ) (103,313 ) (2,711,910 ) (2,490,557 ) (7,587,998 ) (6,857,517 ) Financial Services expenses (45,323 ) (42,835 ) (132,655 ) (122,921 ) Selling, general, and administrative expenses (350,112 ) (320,506 ) (1,030,391 ) (864,478 ) Loss on debt retirement — — — (61,469 ) Other expense, net (25,194 ) (4,750 ) (30,830 ) (8,011 ) Income before income taxes 811,277 620,402 2,275,743 1,653,928 Income tax expense (183,349 ) (144,853 ) (540,657 ) (370,873 ) Net income $ 627,928 $ 475,549 $ 1,735,086 $ 1,283,055 Per share: Basic earnings $ 2.70 $ 1.83 $ 7.26 $ 4.86 Diluted earnings $ 2.69 $ 1.82 $ 7.22 $ 4.85 Cash dividends declared $ 0.15 $ 0.14 $ 0.45 $ 0.42 Number of shares used in calculation: Basic 230,967 258,147 237,639 261,854 Effect of dilutive securities 1,333 752 1,240 668 Diluted 232,300 258,899 238,879 262,522 PulteGroup, Inc. Condensed Consolidated Balance Sheets ($000's omitted) (Unaudited) September 30, 2022 December 31, 2021 ASSETS Cash and equivalents $ 231,301 $ 1,779,088 Restricted cash 60,097 54,477 Total cash, cash equivalents, and restricted cash 291,398 1,833,565 House and land inventory 11,773,077 9,047,569 Land held for sale 36,997 29,276 Residential mortgage loans available-for-sale 438,205 947,139 Investments in unconsolidated entities 158,085 98,155 Other assets 1,266,360 1,110,966 Intangible assets 138,571 146,923 Deferred tax assets 109,151 139,038 $ 14,211,844 $ 13,352,631 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Accounts payable $ 599,357 $ 621,168 Customer deposits 979,528 844,785 Deferred tax liabilities 179,141 165,519 Accrued and other liabilities 1,587,458 1,576,478 Financial Services debt 338,190 626,123 Revolving credit facility 319,000 — Notes payable 2,045,167 2,029,043 6,047,841 5,863,116 Shareholders' equity 8,164,003 7,489,515 $ 14,211,844 $ 13,352,631 PulteGroup, Inc. Consolidated Statements of Cash Flows ($000's omitted) (Unaudited) Nine Months Ended September 30, 2022 2021 Cash flows from operating activities: Net income $ 1,735,086 $ 1,283,055 Adjustments to reconcile net income to net cash from operating activities: Deferred income tax expense 43,485 12,842 Land-related charges 32,475 6,820 Loss on debt retirement — 61,469 Depreciation and amortization 51,934 53,023 Share-based compensation expense 39,520 28,439 Other, net (160 ) (3,274 ) Increase (decrease) in cash due to: Inventories (2,706,142 ) (1,137,351 ) Residential mortgage loans available-for-sale 507,861 (36,816 ) Other assets (127,173 ) (114,879 ) Accounts payable, accrued and other liabilities 119,189 394,897 Net cash provided by (used in) operating activities (303,925 ) 548,225 Cash flows from investing activities: Capital expenditures (88,585 ) (52,134 ) Investments in unconsolidated entities (58,154 ) (35,812 ) Distributions of capital from unconsolidated entities 3,413 11,500 Business acquisition (10,400 ) (10,400 ) Other investing activities, net (964 ) 378 Net cash used in investing activities (154,690 ) (86,468 ) Cash flows from financing activities: Repayments of notes payable (4,856 ) (797,395 ) Borrowings under revolving credit facility 1,925,000 — Repayments under revolving credit facility (1,606,000 ) — Financial Services borrowings (repayments), net (287,933 ) 64,684 Debt issuance costs (11,167 ) — Stock option exercises — 11 Share repurchases (974,673 ) (614,303 ) Cash paid for shares withheld for taxes (14,326 ) (10,642 ) Dividends paid (109,597 ) (111,696 ) Net cash used in financing activities (1,083,552 ) (1,469,341 ) Net decrease in cash, cash equivalents, and restricted cash (1,542,167 ) (1,007,584 ) Cash, cash equivalents, and restricted cash at beginning of period 1,833,565 2,632,235 Cash, cash equivalents, and restricted cash at end of period $ 291,398 $ 1,624,651 Supplemental Cash Flow Information: Interest paid (capitalized), net $ 5,642 $ 16,483 Income taxes paid (refunded), net $ 493,559 $ 335,487 PulteGroup, Inc. Segment Data ($000's omitted) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 HOMEBUILDING: Home sale revenues $ 3,840,449 $ 3,324,483 $ 10,720,364 $ 9,156,371 Land sale and other revenues 30,658 63,085 97,626 123,321 Total Homebuilding revenues 3,871,107 3,387,568 10,817,990 9,279,692 Home sale cost of revenues (2,685,596 ) (2,443,074 ) (7,498,027 ) (6,754,204 ) Land sale and other cost of revenues (26,314 ) (47,483 ) (89,971 ) (103,313 ) Selling, general, and administrative expenses ("SG&A") (350,112 ) (320,506 ) (1,030,391 ) (864,478 ) Loss on debt retirement — — — (61,469 ) Other expense, net (25,322 ) (4,742 ) (32,039 ) (8,742 ) Income before income taxes $ 783,763 $ 571,763 $ 2,167,562 $ 1,487,486 FINANCIAL SERVICES: Income before income taxes $ 27,514 $ 48,639 $ 108,181 $ 166,442 CONSOLIDATED: Income before income taxes $ 811,277 $ 620,402 $ 2,275,743 $ 1,653,928 PulteGroup, Inc. Segment Data, continued ($000's omitted) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Home sale revenues $ 3,840,449 $ 3,324,483 $ 10,720,364 $ 9,156,371 Closings - units Northeast 378 472 1,026 1,286 Southeast 1,295 1,278 3,406 3,507 Florida 1,628 1,502 4,840 4,614 Midwest 1,104 1,123 3,179 3,004 Texas 1,431 1,276 4,124 4,020 West 1,211 1,356 3,688 3,852 7,047 7,007 20,263 20,283 Average selling price $ 545 $ 474 $ 529 $ 451 Net new orders - units Northeast 237 368 1,046 1,451 Southeast 1,081 1,085 3,716 4,010 Florida 1,471 1,844 4,898 6,451 Midwest 655 1,075 2,660 3,936 Texas 979 1,117 3,718 4,468 West 501 1,307 3,275 4,654 4,924 6,796 19,313 24,970 Net new orders - dollars $ 2,807,308 $ 3,780,354 $ 11,442,579 $ 12,668,805 Unit backlog Northeast 808 1,118 Southeast 2,786 2,843 Florida 5,488 5,491 Midwest 2,169 3,131 Texas 2,693 3,501 West 3,109 3,761 17,053 19,845 Dollars in backlog $ 10,581,026 $ 10,305,614 PulteGroup, Inc. Segment Data, continued ($000's omitted) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 MORTGAGE ORIGINATIONS: Origination volume 4,369 5,078 12,994 15,082 Origination principal $ 1,715,344 $ 1,810,722 $ 5,009,957 $ 5,186,913 Capture rate 77.2 % 84.6 % 78.7 % 86.1 % Supplemental Data ($000's omitted) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Interest in inventory, beginning of period $ 151,554 $ 185,433 $ 160,756 $ 193,409 Interest capitalized 33,235 31,707 96,156 97,809 Interest expensed (41,120 ) (41,897 ) (113,243 ) (115,975 ) Interest in inventory, end of period $ 143,669 $ 175,243 $ 143,669 $ 175,243 PulteGroup, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited) This report contains information about our debt-to-capital ratios. This measure could be considered a non-GAAP financial measure under the SEC's rules and should be considered in addition to, rather than as a substitute for, the comparable GAAP financial measures. We believe that this measure provides 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 September 30, 2022 December 31, 2021 Notes payable $ 2,045,167 $ 2,029,043 Revolving credit facility 319,000 — Total debt $ 2,364,167 $ 2,029,043 Shareholders' equity 8,164,003 7,489,515 Total capital $ 10,528,170 $ 9,518,558 Debt-to-capital ratio 22.5 % 21.3 % View source version on businesswire.com: https://www.businesswire.com/news/home/20221025005131/en/Contacts Investors: Jim Zeumer (404) 978-6434 jim.zeumer@pultegroup.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
PulteGroup Reports Third Quarter 2022 Financial Results By: PulteGroup, Inc. via Business Wire October 25, 2022 at 06:30 AM EDT Earnings Increased 48% to $2.69 Per Share Home Sale Revenues Increased 16% to $3.8 Billion Homebuilding Gross Margin Expanded by 360 Basis Points to 30.1% Net New Orders of 4,924 Homes with a Value of $2.8 Billion Unit Backlog Totaled 17,053 Homes; Backlog Value Increased 3% to $10.6 Billion Repurchased 2% of Outstanding Common Shares for $180 Million PulteGroup, Inc. (NYSE: PHM) announced today financial results for its third quarter ended September 30, 2022. For the quarter, the Company reported net income of $628 million, or $2.69 per share. In the prior year, the Company reported net income of $476 million, or $1.82 per share. “Reflective of the strong demand conditions that existed earlier this year, PulteGroup’s third quarter financial results include a 16% increase in revenues and a 410 basis point expansion in the Company’s operating margin,” said Ryan Marshall, PulteGroup President and CEO. “These gains helped us to deliver a 48% increase in earnings per share, while allowing us to continue returning funds to shareholders as we repurchased $180 million of stock in the quarter.” “While we reported significant growth in our third quarter earnings, demand clearly slowed in the period as dramatically higher interest rates created financial and psychological hurdles for potential homebuyers,” said Marshall. “In response to today’s more challenging market conditions, we continue to adjust our sales, construction and investment practices as we work to turn inventory and balance our housing starts to appropriately match the pace of sales.” Third Quarter Results Home sale revenues for the third quarter increased 16% over the prior year to $3.8 billion. Higher revenues for the period were driven by a 15% increase in the average sales price of homes closed to $545,000, along with a 1% increase in closings to 7,047 homes. In the third quarter, the Company’s home sale gross margin was 30.1%, an increase of 360 basis points over the prior year gross margin of 26.5%. The Company’s homebuilding SG&A expense for the period was $350 million, or 9.1% of home sale revenues. SG&A expense for the prior year period was $321 million, or 9.6 % of home sale revenues. Net new orders for the third quarter decreased 28% from the prior year to 4,924 homes. The value of net new orders in the third quarter was $2.8 billion. The Company’s cancelation rate in the third quarter was 24%, up from 10% in the prior year period and 15% in the second quarter of 2022. In the third quarter, the Company operated out of an average of 823 communities, compared with an average community count of 768 in the prior year period. The Company’s unit backlog at the end of the third quarter was 17,053 homes, which is a decrease of 14% from the prior year. Backlog value at the end of the third quarter was $10.6 billion, which is an increase of 3% over the comparable prior year period. Given changing industry dynamics resulting primarily from Federal Reserve actions to raise interest rates, PulteGroup continues to reassess all pending transactions prior to completing the purchase of the underlying land asset. As a result of this ongoing review process, in the third quarter the Company elected to terminate a number of pending land transactions and wrote off $24 million of deposits and preacquisition expenses associated with the deals. The write-off of these costs is recorded in the Other expense, net line of the income statement. “For the past several years, we have systematically increased our use of land options with the dual objectives of enhancing returns and helping to mitigate market risks,” said Bob O’Shaughnessy, Executive Vice President and CFO. “With today’s more challenging market conditions, in the third quarter we chose to walk from certain options tied to future land investment where returns no longer met required performance metrics.” Pre-tax income for the Company's financial services operations was $28 million, down from $49 million last year. The decrease in pre-tax income for the period reflects both a reduction in loan volumes and the more competitive pricing environment that has existed for much of 2022. The reduction in loan volumes for the quarter was driven, in part, by a decline in capture rate to 77% compared with 85% last year. Pre-tax income for the Company’s third quarter was $811 million, an increase of 31% over the prior year. Income tax expense for the Company’s third quarter was $183 million, or an effective tax rate of 22.6%. The Company’s effective tax rate benefitted from federal energy efficient home credits recognized in the period resulting from the extension of such credits by the Inflation Reduction Act enacted into law in August. During the third quarter, PulteGroup repurchased 4.4 million, or 2% of its common shares for $180 million, at an average price of $41.20 per share. The Company ended the quarter with a debt-to-capital ratio of 22.5%. A conference call discussing PulteGroup's third quarter 2022 results is scheduled for Tuesday, October 25, 2022, 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; including as it relates to our ability to take pricing actions to offset rising expenses; 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, 2021, 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 Statements of Operations ($000's omitted, except per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Revenues: Homebuilding Home sale revenues $ 3,840,449 $ 3,324,483 $ 10,720,364 $ 9,156,371 Land sale and other revenues 30,658 63,085 97,626 123,321 3,871,107 3,387,568 10,817,990 9,279,692 Financial Services 72,709 91,482 239,627 288,632 Total revenues 3,943,816 3,479,050 11,057,617 9,568,324 Homebuilding Cost of Revenues: Home sale cost of revenues (2,685,596 ) (2,443,074 ) (7,498,027 ) (6,754,204 ) Land sale and other cost of revenues (26,314 ) (47,483 ) (89,971 ) (103,313 ) (2,711,910 ) (2,490,557 ) (7,587,998 ) (6,857,517 ) Financial Services expenses (45,323 ) (42,835 ) (132,655 ) (122,921 ) Selling, general, and administrative expenses (350,112 ) (320,506 ) (1,030,391 ) (864,478 ) Loss on debt retirement — — — (61,469 ) Other expense, net (25,194 ) (4,750 ) (30,830 ) (8,011 ) Income before income taxes 811,277 620,402 2,275,743 1,653,928 Income tax expense (183,349 ) (144,853 ) (540,657 ) (370,873 ) Net income $ 627,928 $ 475,549 $ 1,735,086 $ 1,283,055 Per share: Basic earnings $ 2.70 $ 1.83 $ 7.26 $ 4.86 Diluted earnings $ 2.69 $ 1.82 $ 7.22 $ 4.85 Cash dividends declared $ 0.15 $ 0.14 $ 0.45 $ 0.42 Number of shares used in calculation: Basic 230,967 258,147 237,639 261,854 Effect of dilutive securities 1,333 752 1,240 668 Diluted 232,300 258,899 238,879 262,522 PulteGroup, Inc. Condensed Consolidated Balance Sheets ($000's omitted) (Unaudited) September 30, 2022 December 31, 2021 ASSETS Cash and equivalents $ 231,301 $ 1,779,088 Restricted cash 60,097 54,477 Total cash, cash equivalents, and restricted cash 291,398 1,833,565 House and land inventory 11,773,077 9,047,569 Land held for sale 36,997 29,276 Residential mortgage loans available-for-sale 438,205 947,139 Investments in unconsolidated entities 158,085 98,155 Other assets 1,266,360 1,110,966 Intangible assets 138,571 146,923 Deferred tax assets 109,151 139,038 $ 14,211,844 $ 13,352,631 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Accounts payable $ 599,357 $ 621,168 Customer deposits 979,528 844,785 Deferred tax liabilities 179,141 165,519 Accrued and other liabilities 1,587,458 1,576,478 Financial Services debt 338,190 626,123 Revolving credit facility 319,000 — Notes payable 2,045,167 2,029,043 6,047,841 5,863,116 Shareholders' equity 8,164,003 7,489,515 $ 14,211,844 $ 13,352,631 PulteGroup, Inc. Consolidated Statements of Cash Flows ($000's omitted) (Unaudited) Nine Months Ended September 30, 2022 2021 Cash flows from operating activities: Net income $ 1,735,086 $ 1,283,055 Adjustments to reconcile net income to net cash from operating activities: Deferred income tax expense 43,485 12,842 Land-related charges 32,475 6,820 Loss on debt retirement — 61,469 Depreciation and amortization 51,934 53,023 Share-based compensation expense 39,520 28,439 Other, net (160 ) (3,274 ) Increase (decrease) in cash due to: Inventories (2,706,142 ) (1,137,351 ) Residential mortgage loans available-for-sale 507,861 (36,816 ) Other assets (127,173 ) (114,879 ) Accounts payable, accrued and other liabilities 119,189 394,897 Net cash provided by (used in) operating activities (303,925 ) 548,225 Cash flows from investing activities: Capital expenditures (88,585 ) (52,134 ) Investments in unconsolidated entities (58,154 ) (35,812 ) Distributions of capital from unconsolidated entities 3,413 11,500 Business acquisition (10,400 ) (10,400 ) Other investing activities, net (964 ) 378 Net cash used in investing activities (154,690 ) (86,468 ) Cash flows from financing activities: Repayments of notes payable (4,856 ) (797,395 ) Borrowings under revolving credit facility 1,925,000 — Repayments under revolving credit facility (1,606,000 ) — Financial Services borrowings (repayments), net (287,933 ) 64,684 Debt issuance costs (11,167 ) — Stock option exercises — 11 Share repurchases (974,673 ) (614,303 ) Cash paid for shares withheld for taxes (14,326 ) (10,642 ) Dividends paid (109,597 ) (111,696 ) Net cash used in financing activities (1,083,552 ) (1,469,341 ) Net decrease in cash, cash equivalents, and restricted cash (1,542,167 ) (1,007,584 ) Cash, cash equivalents, and restricted cash at beginning of period 1,833,565 2,632,235 Cash, cash equivalents, and restricted cash at end of period $ 291,398 $ 1,624,651 Supplemental Cash Flow Information: Interest paid (capitalized), net $ 5,642 $ 16,483 Income taxes paid (refunded), net $ 493,559 $ 335,487 PulteGroup, Inc. Segment Data ($000's omitted) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 HOMEBUILDING: Home sale revenues $ 3,840,449 $ 3,324,483 $ 10,720,364 $ 9,156,371 Land sale and other revenues 30,658 63,085 97,626 123,321 Total Homebuilding revenues 3,871,107 3,387,568 10,817,990 9,279,692 Home sale cost of revenues (2,685,596 ) (2,443,074 ) (7,498,027 ) (6,754,204 ) Land sale and other cost of revenues (26,314 ) (47,483 ) (89,971 ) (103,313 ) Selling, general, and administrative expenses ("SG&A") (350,112 ) (320,506 ) (1,030,391 ) (864,478 ) Loss on debt retirement — — — (61,469 ) Other expense, net (25,322 ) (4,742 ) (32,039 ) (8,742 ) Income before income taxes $ 783,763 $ 571,763 $ 2,167,562 $ 1,487,486 FINANCIAL SERVICES: Income before income taxes $ 27,514 $ 48,639 $ 108,181 $ 166,442 CONSOLIDATED: Income before income taxes $ 811,277 $ 620,402 $ 2,275,743 $ 1,653,928 PulteGroup, Inc. Segment Data, continued ($000's omitted) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Home sale revenues $ 3,840,449 $ 3,324,483 $ 10,720,364 $ 9,156,371 Closings - units Northeast 378 472 1,026 1,286 Southeast 1,295 1,278 3,406 3,507 Florida 1,628 1,502 4,840 4,614 Midwest 1,104 1,123 3,179 3,004 Texas 1,431 1,276 4,124 4,020 West 1,211 1,356 3,688 3,852 7,047 7,007 20,263 20,283 Average selling price $ 545 $ 474 $ 529 $ 451 Net new orders - units Northeast 237 368 1,046 1,451 Southeast 1,081 1,085 3,716 4,010 Florida 1,471 1,844 4,898 6,451 Midwest 655 1,075 2,660 3,936 Texas 979 1,117 3,718 4,468 West 501 1,307 3,275 4,654 4,924 6,796 19,313 24,970 Net new orders - dollars $ 2,807,308 $ 3,780,354 $ 11,442,579 $ 12,668,805 Unit backlog Northeast 808 1,118 Southeast 2,786 2,843 Florida 5,488 5,491 Midwest 2,169 3,131 Texas 2,693 3,501 West 3,109 3,761 17,053 19,845 Dollars in backlog $ 10,581,026 $ 10,305,614 PulteGroup, Inc. Segment Data, continued ($000's omitted) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 MORTGAGE ORIGINATIONS: Origination volume 4,369 5,078 12,994 15,082 Origination principal $ 1,715,344 $ 1,810,722 $ 5,009,957 $ 5,186,913 Capture rate 77.2 % 84.6 % 78.7 % 86.1 % Supplemental Data ($000's omitted) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Interest in inventory, beginning of period $ 151,554 $ 185,433 $ 160,756 $ 193,409 Interest capitalized 33,235 31,707 96,156 97,809 Interest expensed (41,120 ) (41,897 ) (113,243 ) (115,975 ) Interest in inventory, end of period $ 143,669 $ 175,243 $ 143,669 $ 175,243 PulteGroup, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited) This report contains information about our debt-to-capital ratios. This measure could be considered a non-GAAP financial measure under the SEC's rules and should be considered in addition to, rather than as a substitute for, the comparable GAAP financial measures. We believe that this measure provides 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 September 30, 2022 December 31, 2021 Notes payable $ 2,045,167 $ 2,029,043 Revolving credit facility 319,000 — Total debt $ 2,364,167 $ 2,029,043 Shareholders' equity 8,164,003 7,489,515 Total capital $ 10,528,170 $ 9,518,558 Debt-to-capital ratio 22.5 % 21.3 % View source version on businesswire.com: https://www.businesswire.com/news/home/20221025005131/en/Contacts Investors: Jim Zeumer (404) 978-6434 jim.zeumer@pultegroup.com
Earnings Increased 48% to $2.69 Per Share Home Sale Revenues Increased 16% to $3.8 Billion Homebuilding Gross Margin Expanded by 360 Basis Points to 30.1% Net New Orders of 4,924 Homes with a Value of $2.8 Billion Unit Backlog Totaled 17,053 Homes; Backlog Value Increased 3% to $10.6 Billion Repurchased 2% of Outstanding Common Shares for $180 Million
PulteGroup, Inc. (NYSE: PHM) announced today financial results for its third quarter ended September 30, 2022. For the quarter, the Company reported net income of $628 million, or $2.69 per share. In the prior year, the Company reported net income of $476 million, or $1.82 per share. “Reflective of the strong demand conditions that existed earlier this year, PulteGroup’s third quarter financial results include a 16% increase in revenues and a 410 basis point expansion in the Company’s operating margin,” said Ryan Marshall, PulteGroup President and CEO. “These gains helped us to deliver a 48% increase in earnings per share, while allowing us to continue returning funds to shareholders as we repurchased $180 million of stock in the quarter.” “While we reported significant growth in our third quarter earnings, demand clearly slowed in the period as dramatically higher interest rates created financial and psychological hurdles for potential homebuyers,” said Marshall. “In response to today’s more challenging market conditions, we continue to adjust our sales, construction and investment practices as we work to turn inventory and balance our housing starts to appropriately match the pace of sales.” Third Quarter Results Home sale revenues for the third quarter increased 16% over the prior year to $3.8 billion. Higher revenues for the period were driven by a 15% increase in the average sales price of homes closed to $545,000, along with a 1% increase in closings to 7,047 homes. In the third quarter, the Company’s home sale gross margin was 30.1%, an increase of 360 basis points over the prior year gross margin of 26.5%. The Company’s homebuilding SG&A expense for the period was $350 million, or 9.1% of home sale revenues. SG&A expense for the prior year period was $321 million, or 9.6 % of home sale revenues. Net new orders for the third quarter decreased 28% from the prior year to 4,924 homes. The value of net new orders in the third quarter was $2.8 billion. The Company’s cancelation rate in the third quarter was 24%, up from 10% in the prior year period and 15% in the second quarter of 2022. In the third quarter, the Company operated out of an average of 823 communities, compared with an average community count of 768 in the prior year period. The Company’s unit backlog at the end of the third quarter was 17,053 homes, which is a decrease of 14% from the prior year. Backlog value at the end of the third quarter was $10.6 billion, which is an increase of 3% over the comparable prior year period. Given changing industry dynamics resulting primarily from Federal Reserve actions to raise interest rates, PulteGroup continues to reassess all pending transactions prior to completing the purchase of the underlying land asset. As a result of this ongoing review process, in the third quarter the Company elected to terminate a number of pending land transactions and wrote off $24 million of deposits and preacquisition expenses associated with the deals. The write-off of these costs is recorded in the Other expense, net line of the income statement. “For the past several years, we have systematically increased our use of land options with the dual objectives of enhancing returns and helping to mitigate market risks,” said Bob O’Shaughnessy, Executive Vice President and CFO. “With today’s more challenging market conditions, in the third quarter we chose to walk from certain options tied to future land investment where returns no longer met required performance metrics.” Pre-tax income for the Company's financial services operations was $28 million, down from $49 million last year. The decrease in pre-tax income for the period reflects both a reduction in loan volumes and the more competitive pricing environment that has existed for much of 2022. The reduction in loan volumes for the quarter was driven, in part, by a decline in capture rate to 77% compared with 85% last year. Pre-tax income for the Company’s third quarter was $811 million, an increase of 31% over the prior year. Income tax expense for the Company’s third quarter was $183 million, or an effective tax rate of 22.6%. The Company’s effective tax rate benefitted from federal energy efficient home credits recognized in the period resulting from the extension of such credits by the Inflation Reduction Act enacted into law in August. During the third quarter, PulteGroup repurchased 4.4 million, or 2% of its common shares for $180 million, at an average price of $41.20 per share. The Company ended the quarter with a debt-to-capital ratio of 22.5%. A conference call discussing PulteGroup's third quarter 2022 results is scheduled for Tuesday, October 25, 2022, 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; including as it relates to our ability to take pricing actions to offset rising expenses; 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, 2021, 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 Statements of Operations ($000's omitted, except per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Revenues: Homebuilding Home sale revenues $ 3,840,449 $ 3,324,483 $ 10,720,364 $ 9,156,371 Land sale and other revenues 30,658 63,085 97,626 123,321 3,871,107 3,387,568 10,817,990 9,279,692 Financial Services 72,709 91,482 239,627 288,632 Total revenues 3,943,816 3,479,050 11,057,617 9,568,324 Homebuilding Cost of Revenues: Home sale cost of revenues (2,685,596 ) (2,443,074 ) (7,498,027 ) (6,754,204 ) Land sale and other cost of revenues (26,314 ) (47,483 ) (89,971 ) (103,313 ) (2,711,910 ) (2,490,557 ) (7,587,998 ) (6,857,517 ) Financial Services expenses (45,323 ) (42,835 ) (132,655 ) (122,921 ) Selling, general, and administrative expenses (350,112 ) (320,506 ) (1,030,391 ) (864,478 ) Loss on debt retirement — — — (61,469 ) Other expense, net (25,194 ) (4,750 ) (30,830 ) (8,011 ) Income before income taxes 811,277 620,402 2,275,743 1,653,928 Income tax expense (183,349 ) (144,853 ) (540,657 ) (370,873 ) Net income $ 627,928 $ 475,549 $ 1,735,086 $ 1,283,055 Per share: Basic earnings $ 2.70 $ 1.83 $ 7.26 $ 4.86 Diluted earnings $ 2.69 $ 1.82 $ 7.22 $ 4.85 Cash dividends declared $ 0.15 $ 0.14 $ 0.45 $ 0.42 Number of shares used in calculation: Basic 230,967 258,147 237,639 261,854 Effect of dilutive securities 1,333 752 1,240 668 Diluted 232,300 258,899 238,879 262,522 PulteGroup, Inc. Condensed Consolidated Balance Sheets ($000's omitted) (Unaudited) September 30, 2022 December 31, 2021 ASSETS Cash and equivalents $ 231,301 $ 1,779,088 Restricted cash 60,097 54,477 Total cash, cash equivalents, and restricted cash 291,398 1,833,565 House and land inventory 11,773,077 9,047,569 Land held for sale 36,997 29,276 Residential mortgage loans available-for-sale 438,205 947,139 Investments in unconsolidated entities 158,085 98,155 Other assets 1,266,360 1,110,966 Intangible assets 138,571 146,923 Deferred tax assets 109,151 139,038 $ 14,211,844 $ 13,352,631 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Accounts payable $ 599,357 $ 621,168 Customer deposits 979,528 844,785 Deferred tax liabilities 179,141 165,519 Accrued and other liabilities 1,587,458 1,576,478 Financial Services debt 338,190 626,123 Revolving credit facility 319,000 — Notes payable 2,045,167 2,029,043 6,047,841 5,863,116 Shareholders' equity 8,164,003 7,489,515 $ 14,211,844 $ 13,352,631 PulteGroup, Inc. Consolidated Statements of Cash Flows ($000's omitted) (Unaudited) Nine Months Ended September 30, 2022 2021 Cash flows from operating activities: Net income $ 1,735,086 $ 1,283,055 Adjustments to reconcile net income to net cash from operating activities: Deferred income tax expense 43,485 12,842 Land-related charges 32,475 6,820 Loss on debt retirement — 61,469 Depreciation and amortization 51,934 53,023 Share-based compensation expense 39,520 28,439 Other, net (160 ) (3,274 ) Increase (decrease) in cash due to: Inventories (2,706,142 ) (1,137,351 ) Residential mortgage loans available-for-sale 507,861 (36,816 ) Other assets (127,173 ) (114,879 ) Accounts payable, accrued and other liabilities 119,189 394,897 Net cash provided by (used in) operating activities (303,925 ) 548,225 Cash flows from investing activities: Capital expenditures (88,585 ) (52,134 ) Investments in unconsolidated entities (58,154 ) (35,812 ) Distributions of capital from unconsolidated entities 3,413 11,500 Business acquisition (10,400 ) (10,400 ) Other investing activities, net (964 ) 378 Net cash used in investing activities (154,690 ) (86,468 ) Cash flows from financing activities: Repayments of notes payable (4,856 ) (797,395 ) Borrowings under revolving credit facility 1,925,000 — Repayments under revolving credit facility (1,606,000 ) — Financial Services borrowings (repayments), net (287,933 ) 64,684 Debt issuance costs (11,167 ) — Stock option exercises — 11 Share repurchases (974,673 ) (614,303 ) Cash paid for shares withheld for taxes (14,326 ) (10,642 ) Dividends paid (109,597 ) (111,696 ) Net cash used in financing activities (1,083,552 ) (1,469,341 ) Net decrease in cash, cash equivalents, and restricted cash (1,542,167 ) (1,007,584 ) Cash, cash equivalents, and restricted cash at beginning of period 1,833,565 2,632,235 Cash, cash equivalents, and restricted cash at end of period $ 291,398 $ 1,624,651 Supplemental Cash Flow Information: Interest paid (capitalized), net $ 5,642 $ 16,483 Income taxes paid (refunded), net $ 493,559 $ 335,487 PulteGroup, Inc. Segment Data ($000's omitted) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 HOMEBUILDING: Home sale revenues $ 3,840,449 $ 3,324,483 $ 10,720,364 $ 9,156,371 Land sale and other revenues 30,658 63,085 97,626 123,321 Total Homebuilding revenues 3,871,107 3,387,568 10,817,990 9,279,692 Home sale cost of revenues (2,685,596 ) (2,443,074 ) (7,498,027 ) (6,754,204 ) Land sale and other cost of revenues (26,314 ) (47,483 ) (89,971 ) (103,313 ) Selling, general, and administrative expenses ("SG&A") (350,112 ) (320,506 ) (1,030,391 ) (864,478 ) Loss on debt retirement — — — (61,469 ) Other expense, net (25,322 ) (4,742 ) (32,039 ) (8,742 ) Income before income taxes $ 783,763 $ 571,763 $ 2,167,562 $ 1,487,486 FINANCIAL SERVICES: Income before income taxes $ 27,514 $ 48,639 $ 108,181 $ 166,442 CONSOLIDATED: Income before income taxes $ 811,277 $ 620,402 $ 2,275,743 $ 1,653,928 PulteGroup, Inc. Segment Data, continued ($000's omitted) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Home sale revenues $ 3,840,449 $ 3,324,483 $ 10,720,364 $ 9,156,371 Closings - units Northeast 378 472 1,026 1,286 Southeast 1,295 1,278 3,406 3,507 Florida 1,628 1,502 4,840 4,614 Midwest 1,104 1,123 3,179 3,004 Texas 1,431 1,276 4,124 4,020 West 1,211 1,356 3,688 3,852 7,047 7,007 20,263 20,283 Average selling price $ 545 $ 474 $ 529 $ 451 Net new orders - units Northeast 237 368 1,046 1,451 Southeast 1,081 1,085 3,716 4,010 Florida 1,471 1,844 4,898 6,451 Midwest 655 1,075 2,660 3,936 Texas 979 1,117 3,718 4,468 West 501 1,307 3,275 4,654 4,924 6,796 19,313 24,970 Net new orders - dollars $ 2,807,308 $ 3,780,354 $ 11,442,579 $ 12,668,805 Unit backlog Northeast 808 1,118 Southeast 2,786 2,843 Florida 5,488 5,491 Midwest 2,169 3,131 Texas 2,693 3,501 West 3,109 3,761 17,053 19,845 Dollars in backlog $ 10,581,026 $ 10,305,614 PulteGroup, Inc. Segment Data, continued ($000's omitted) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 MORTGAGE ORIGINATIONS: Origination volume 4,369 5,078 12,994 15,082 Origination principal $ 1,715,344 $ 1,810,722 $ 5,009,957 $ 5,186,913 Capture rate 77.2 % 84.6 % 78.7 % 86.1 % Supplemental Data ($000's omitted) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Interest in inventory, beginning of period $ 151,554 $ 185,433 $ 160,756 $ 193,409 Interest capitalized 33,235 31,707 96,156 97,809 Interest expensed (41,120 ) (41,897 ) (113,243 ) (115,975 ) Interest in inventory, end of period $ 143,669 $ 175,243 $ 143,669 $ 175,243 PulteGroup, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited) This report contains information about our debt-to-capital ratios. This measure could be considered a non-GAAP financial measure under the SEC's rules and should be considered in addition to, rather than as a substitute for, the comparable GAAP financial measures. We believe that this measure provides 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 September 30, 2022 December 31, 2021 Notes payable $ 2,045,167 $ 2,029,043 Revolving credit facility 319,000 — Total debt $ 2,364,167 $ 2,029,043 Shareholders' equity 8,164,003 7,489,515 Total capital $ 10,528,170 $ 9,518,558 Debt-to-capital ratio 22.5 % 21.3 % View source version on businesswire.com: https://www.businesswire.com/news/home/20221025005131/en/
