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PHM · Pultegroup

30 filings

10-K

PHM 10-K Annual Reports

Pultegroup - 30 annual reports

Filing record · 2016–202610-K1110-Q338-K109

2025
Pultegroup Annual Report, Year Ended Dec 31, 2025
PulteGroup, Inc. (PHM), one of the largest U.S. homebuilders, reported a weaker 2025 as consumer demand softened under affordability pressure from elevated mortgage rates. Consolidated revenues were $17.3 billion in 2025 versus $17.9 billion in 2024, and net income fell to $2.22 billion from $3.08 billion, with diluted EPS of $11.12 versus $14.69. Homebuilding closings declined 5% to 29,572 homes, net new orders fell 4% in units and 6% in dollars, and backlog dropped 19% in dollars to $5.3 billion. Home sale gross margin compressed to 26.3% from 28.9%, driven by elevated sales incentives, higher land costs, and $77.4 million of land inventory impairments, while SG&A rose to 9.4% of home sale revenues from 7.6%. The company maintained a strong balance sheet, ending 2025 with $2.0 billion of cash, $892.9 million of available revolver capacity, and a debt-to-total-capitalization ratio (excluding Financial Services debt) of 11.2%, down from 11.8%. Management repurchased $1.2 billion of shares in 2025 and raised the quarterly dividend 18% to $0.26 per share, while $982.9 million remained under the repurchase authorization. Operating cash flow was $1.9 billion, and on February 4, 2026, the company extended its revolving credit facility to 2031 and increased committed capacity to $1.75 billion. Management expects gross margins to decline somewhat in future periods and is taking a measured approach to capital allocation given continued demand volatility. Investors should weigh the earnings decline and margin pressure against the company's liquidity, shareholder returns, and expectation of continued elevated incentives. Key watch items include the August 2026 maturity of the Pulte Mortgage repurchase agreement, the March 2026 senior note maturity of $251.9 million, and the pace of spec inventory reduction.
Feb 4, 2026
2024
Pultegroup Annual Report, Year Ended Dec 31, 2024
PulteGroup, Inc. (NYSE: PHM) reported 2024 consolidated revenues of $17.9 billion, up from $16.1 billion in 2023, and net income of $3.08 billion, or $14.69 diluted earnings per share, compared with $2.60 billion and $11.72 in 2023. Homebuilding generated 98% of revenues. Closings rose to 31,219 homes from 28,603, and the average selling price increased to $555,000 from $545,000. Home sale gross margin was 28.9%, down from 29.3%, as the company used elevated sales incentives, especially mortgage interest rate buydowns, to address buyer affordability challenges. Backlog fell to $6.5 billion (10,153 units) from $7.3 billion, and net new orders rose 2% in units. Management said demand weakened in the second half of 2024 as mortgage rates rose, and it expects sales paces to stay volatile and gross margins to decline somewhat in future periods. Capital returns were significant. The company repurchased 10.1 million shares for $1.2 billion in 2024, and its quarterly dividend was raised from $0.20 to $0.22 per share effective with the January 2025 payment. The Board approved an additional $1.5 billion repurchase authorization in January 2025. Debt-to-total capitalization, excluding Financial Services debt, declined to 11.8% from 15.9%. Cash and equivalents were $1.6 billion at year-end, with $928.9 million available under the Revolving Credit Facility. Notes payable declined to $1.62 billion after repurchases and repayments. Pulte Mortgage's $675.0 million repurchase agreement, which matures in August 2025, is a near-term refinancing item. The filing also notes that Chief Financial Officer Robert T. O'Shaughnessy will be succeeded by James L. Ossowski effective February 7, 2025. Insurance reserve reversals of $333.9 million in 2024 benefited SG&A and other results, and the company's self-insured reserves fell to $267.5 million from $563.1 million. Management attributed the reduction to lower construction defect claims experience.
Feb 6, 2025
2023
Pultegroup Annual Report, Year Ended Dec 31, 2023
PulteGroup, Inc. (NYSE: PHM), a Michigan corporation and one of the largest U.S. homebuilders, reported 2023 total revenues of $16.06 billion, up from $16.00 billion in 2022, and net income of $2.60 billion, or $11.72 per diluted share, compared with $2.62 billion, or $11.01 per diluted share, in 2022. Homebuilding delivered 28,603 closings at an average selling price of $545,000, while net new orders rose 23% in units to 28,580 and the cancellation rate fell to 16% from 19%. Homebuilding gross margin from home sales was 29.3%, down from 30.1% in 2022. Backlog ended the year at $7.3 billion (12,146 units), down 5% in dollars from $7.7 billion. Cash flow from operations was $2.20 billion in 2023, versus $668.5 million in 2022. The company repurchased 13.8 million shares for $1.0 billion and paid $142.5 million in dividends. Cash, cash equivalents and restricted cash totaled $1.85 billion at year-end, with $937.3 million available under the Revolving Credit Facility. The debt-to-total capitalization ratio, excluding Financial Services debt, declined to 15.9% from 18.7%. Subsequent to year-end, the board raised the quarterly dividend 25% to $0.20 per share and increased the share repurchase authorization by $1.5 billion on January 29, 2024. The filing highlights risks tied to interest rates and mortgage availability, labor and material cost inflation, land availability, and construction defect and warranty claims. Self-insured reserves were $563.1 million at year-end, and the auditor, Ernst & Young LLP, issued an unqualified opinion on both the financial statements and internal control over financial reporting.
Feb 5, 2024
2022
Pultegroup Annual Report, Year Ended Dec 31, 2022
PulteGroup, Inc. reported record-level 2022 results driven by pricing. Total revenues were $16.2 billion, up from $13.9 billion in 2021. Net income was $2.62 billion, or $11.01 diluted EPS, compared with $1.95 billion, or $7.43, in 2021. Home sale revenues rose 18% on a 17% higher average selling price, and home sale gross margin reached 29.7% versus 26.4%. The company also repurchased 24.2 million shares for $1.1 billion during 2022. The outlook has weakened sharply. Beginning in the second quarter of 2022, rising mortgage rates reduced buyer demand. Net new orders fell 27% in units for the year, and the cancellation rate rose to 19% from 9%, with a fourth-quarter rate of 32%. Backlog declined to $7.7 billion (12,169 units) from $9.9 billion (18,003 units). Management expects the more challenging environment to continue through at least 2023, with lower revenues and profitability in those periods. Its planned responses include limiting land acquisition and development spending in 2023, updating underwriting on land options, and taking a more opportunistic approach to share buybacks. Balance sheet liquidity remained solid at year-end. The company had $1.1 billion of cash and equivalents, $946.6 million available under its Revolving Credit Facility, and $2.0 billion of unsecured senior notes outstanding. The debt-to-total capitalization ratio, excluding Financial Services debt, improved to 18.7% from 21.3%. Operating cash flow fell to $668.5 million from $1.0 billion because inventories increased by $2.3 billion, reflecting more unsold homes and longer production cycles.
Feb 6, 2023
2021
Pultegroup Annual Report, Year Ended Dec 31, 2021
PulteGroup, Inc. (NYSE: PHM) reported a strong 2021 in its 10-K filed February 7, 2022. Consolidated revenues rose to $13.93 billion from $11.04 billion in 2020, and net income reached $1.95 billion, or $7.43 per diluted share, compared with $1.41 billion, or $5.18 per diluted share, a year earlier. Homebuilding closings increased 17% to 28,894 homes, the average selling price rose 8% to $463,000, and home sale gross margin improved to 26.4% from 24.3%. Net new orders rose 8% in units and 28% in dollars, and backlog ended the year at $9.9 billion (18,003 units), up 45% in dollars. The filing also highlights ongoing headwinds. Management cited supply chain constraints, rising material prices (lumber more than quadrupled from mid-2020 to mid-2021), and skilled labor shortages in all markets, and noted that production cycle times have lengthened. Average active communities declined 9% to 799 as the company closed out communities faster than it opened new ones, and management expects active communities to increase meaningfully in 2022. The filing also flags rising interest rates and the COVID-19 pandemic as risks to future demand and operations. On capital, PulteGroup generated $1.00 billion of operating cash flow but used $897.3 million to repurchase 17.7 million shares and $147.8 million for dividends. Unsecured senior notes outstanding totaled $2.0 billion, with the next maturity in March 2026, and the company had $1.8 billion of cash and $701.2 million available under its revolving credit facility. The board increased the repurchase authorization by $1.0 billion on January 31, 2022. The debt-to-total capitalization ratio, excluding Financial Services debt, was 21.3%.
Feb 7, 2022
2020
Pultegroup Annual Report, Year Ended Dec 31, 2020
PulteGroup, Inc. (NYSE: PHM), one of the largest U.S. homebuilders, reported a strong 2020 in its annual report. Consolidated revenues rose to $11.04 billion from $10.21 billion in 2019, and net income increased to $1.41 billion, or $5.18 per diluted share, from $1.02 billion, or $3.66 per diluted share. Homebuilding generated 97% of 2020 consolidated revenues. Homebuilding closings reached 24,624 homes, up from 23,232, and the average selling price was $430,000. Net new orders rose 17% in units to 29,275, and year-end backlog reached $6.8 billion (15,158 units), the highest year-end backlog in dollars in the company's history. The filing notes that the COVID-19 pandemic initially disrupted operations and sales in the spring of 2020, but demand rebounded sharply from June onward. Balance sheet and capital allocation improved over the year. Liquidity totaled $3.4 billion at year-end, consisting of $2.6 billion in cash and cash equivalents and $750.3 million available under the Revolving Credit Facility. The company repaid the $700.0 million it drew in March 2020 as a precaution, reinstated share repurchases in October 2020 (repurchasing 4.5 million shares for $170.7 million during the year), and raised its quarterly dividend 17% to $0.14 per share. The debt-to-total-capitalization ratio, excluding Financial Services debt, was 29.5%, slightly below the company's 30.0% to 40.0% target range. Financial Services income before taxes rose to $186.6 million, helped by higher volume and a low mortgage-rate environment, though it absorbed $26.4 million in mortgage repurchase reserve charges. The filing also highlights risks. Management cites ongoing COVID-19 uncertainty, labor and material cost pressures (especially lumber), elongated production cycles, and a $1.5 billion surety bond exposure. Insurance-related reserve reversals of $93.4 million boosted 2020 results, and the company recorded a $20.2 million goodwill impairment on its Innovative Construction Group acquisition. Investors should weigh the strong 2020 earnings and backlog against these cost and pandemic-related uncertainties.
Feb 2, 2021
2019
Pultegroup Annual Report, Year Ended Dec 31, 2019
PulteGroup, Inc. (NYSE: PHM) reported 2019 consolidated revenues of $10.21 billion and net income of $1.02 billion, or $3.66 per diluted share, compared with $1.02 billion and $3.55 per diluted share in 2018. Homebuilding generated 98% of consolidated revenues in 2019, with home sale revenues of $9.92 billion on 23,232 closings, up 1%. Net new orders rose 9% in units to 24,977, and ending backlog grew 20% in units to 10,507 homes, or $4.5 billion. Management attributed the improvement to demand that strengthened from mid-2019, especially among first-time buyers, after a slowdown that began in mid-2018. Homebuilding gross margin on home sales was 23.1%, compared with 23.2% in 2018, and land-related charges fell to $27.1 million from $99.4 million. Financial Services income before taxes rose to $103.3 million from $58.7 million, driven by higher volume and a capture rate of 82.4%. The company ended 2019 with $1.25 billion in total cash, cash equivalents and restricted cash, $2.77 billion of notes payable, and $737.2 million available under its revolving credit facility. It repurchased 8.4 million shares for $274.3 million, paid $122.4 million in dividends, and had $525.5 million of repurchase authorization remaining. The company also completed a $274.0 million tender offer for senior notes maturing in 2021 and acquired American West's Las Vegas homebuilding operations for $163.7 million. Risks noted in the filing include exposure to construction defect and mortgage repurchase claims, with self-insurance liabilities of $709.8 million, and a $261.0 million indemnification claim from Lehman Brothers against CTX Mortgage. Management also flagged rising labor and material costs, a 2019 warranty charge of $14.8 million, and sensitivity to mortgage rates.
Jan 30, 2020
2018
Pultegroup Annual Report, Year Ended Dec 31, 2018
PulteGroup, Inc. (NYSE: PHM), one of the largest U.S. homebuilders, reported record-level results for 2018, with net income of $1.02 billion ($3.55 diluted EPS), up from $447.2 million in 2017, on consolidated revenues of $10.19 billion. Homebuilding closed 23,107 homes at an average selling price of $425,000, and home sale gross margin was 23.2%, compared with 22.4% in 2017. Income before income taxes for Homebuilding rose to $1.29 billion, though the filing notes that industry demand softened beginning in the second quarter of 2018, with higher mortgage rates since May 2018 and lower conversion of traffic to signups, especially among first-time and move-up buyers. Net new orders rose 1% in units to 22,833, and backlog ended the year at 8,722 units ($3.8 billion), down from 8,996 units a year earlier. The balance sheet strengthened over the year. Cash, cash equivalents and restricted cash rose to $1.13 billion from $306.2 million, and shareholders' equity increased to $4.82 billion. Notes payable were $3.03 billion, and the debt-to-total-capitalization ratio, excluding Financial Services debt, was 38.6% against a targeted range of 30.0% to 40.0%. The company repurchased 10.9 million shares for $294.6 million in 2018 and had $299.9 million remaining under its repurchase authorization. Net cash provided by operating activities was $1.45 billion, and the company controlled 149,577 lots, of which 89,530 were owned. Risks highlighted in the filing include land-related charges of $99.4 million in 2018 (versus $191.9 million in 2017), exposure to construction-defect and mortgage repurchase claims, a $261 million indemnification claim by Lehman Brothers against CTX Mortgage Company (for which the company has recorded a liability), and the effects of the Tax Act on mortgage interest deductibility and the company's effective tax rate of 24.2%.
Jan 31, 2019
2017
Pultegroup Annual Report, Year Ended Dec 31, 2017
PulteGroup, Inc. (NYSE: PHM) reported 2017 home sale revenues of $8.32 billion, up 12% from 2016, on 21,052 closings (up 6%) at an average selling price of $395,000 (up 6%). Homebuilding income before income taxes was $865.3 million, and total consolidated net income was $447.2 million, or $1.44 per diluted share, compared with $602.7 million in 2016. The decline in net income was driven by a provisional net tax expense of $172.1 million from the Tax Act, which pushed the effective tax rate to 52.4%. Gross margin from home sales fell to 22.4% from 25.0%, reflecting $89.0 million of land inventory impairments, a $12.4 million warranty charge, and $83.6 million of net realizable value adjustments on land held for sale tied to a May 2017 plan to sell non-core land parcels. Net new orders rose 11% to 22,626 units, and backlog reached $4.0 billion (8,996 units) at year-end. The balance sheet and capital return activity were significant in 2017. The company repurchased $910.3 million of shares, paid dividends of $0.09 per quarter, and ended the year with a debt-to-total-capitalization ratio of 42.0%, slightly above its targeted range of 30.0% to 40.0%. Cash, cash equivalents, and restricted cash totaled $306.2 million, and $764.5 million was available under the revolving credit facility, with no borrowings outstanding. Operating cash flow was $663.1 million. In January 2018, the Board increased the share repurchase authorization by $500.0 million. Management expects the Tax Act to have a favorable impact on results beginning in 2018 and expects to open a similar number of communities in 2018 as in 2017. Key risks flagged in the filing include the cyclical homebuilding industry, rising construction and labor costs, land acquisition competition, mortgage interest rate sensitivity, and self-insured construction defect liabilities of $758.8 million at year-end.
Feb 7, 2018
2016
Pultegroup Annual Report, Year Ended Dec 31, 2016
PulteGroup, Inc. (NYSE: PHM), a Michigan corporation organized in 1956, is one of the largest U.S. homebuilders, operating in 49 markets across 25 states at December 31, 2016 through Centex, Pulte Homes, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods brands. In 2016, home sale revenues rose 29% to $7.45 billion on closings of 19,951 homes (up 16%), with the average selling price increasing to $373,000 from $338,000. Homebuilding income before income taxes was $860.8 million, and consolidated net income was $602.7 million, or $1.75 per diluted share, compared with $494.1 million, or $1.36, in 2015. Gross margin from home sales declined to 25.0% from 26.9%, which the company attributed partly to fair value adjustments on the Wieland assets acquired in January 2016 for $430.5 million. Net new orders rose 13% to 20,326 units, and backlog grew to $2.9 billion (7,422 units). The company opened about 200 new communities, ending the year with 726 active communities, and expects to open more in 2017. Cash, cash equivalents and restricted cash totaled $723.2 million, with no borrowings under the $750 million revolving credit facility and $530.9 million available. Senior notes rose to $3.11 billion after $2.0 billion of 2016 issuances. Operating cash flow was $68.3 million, reflecting a $897.1 million increase in inventories. The company repurchased $600.0 million of shares and retains $1.0 billion of repurchase authorization, and its debt-to-total-capitalization ratio was 40.0%. The filing also discloses risk items for investors, including a range of $750 million to $975 million for reasonably possible losses on general liability construction defect claims, against recorded reserves of $831.1 million. Receivables from insurance carriers were $307.3 million, of which $113.6 million is in litigation. Pulte Mortgage originated loans for 65% of homes sold, with a capture rate of 81.2%.
Feb 1, 2017
2015
Pultegroup Annual Report, Year Ended Dec 31, 2015
PulteGroup, Inc. (NYSE: PHM), one of the largest homebuilders in the U.S., reported 2015 results in its Form 10-K filed February 8, 2016. Consolidated revenues were $5.98 billion and net income was $494.1 million, or $1.36 per diluted share, compared with $474.3 million in 2014. Homebuilding income before income taxes rose to $757.3 million from $635.2 million, driven by higher gross margins and revenues. Home sale revenues increased 2% to $5.79 billion, closings were flat at 17,127 units, and the average selling price rose to $338,000. Gross margin from home sales was 23.3%, unchanged from 2014 and among the highest in the Company's history, according to the filing. Demand strengthened, with net new orders up 8% to 18,008 units and ending backlog up 15% in units to 6,731 units, or $2.5 billion. The Company opened about 200 new communities and the active community count rose 4% to 620. Management said labor constraints and weather delayed some closings. Operating cash flow was negative $348.1 million, primarily because inventories increased $927.8 million as land investment rose. Cash and equivalents ended the year at $754.2 million, and the Company had no borrowings under its $500.0 million revolving credit facility. In 2015 it also entered a $500.0 million term loan, repurchased $433.7 million of shares, and raised its quarterly dividend from $0.08 to $0.09 per share. The ratio of debt to total capitalization was 30.5%. The filing also discloses a $20.0 million charge tied to the Applecross litigation, which is under post-trial motions and a possible appeal. Insurance reserve reversals of $62.2 million favorably affected 2015 results. General liability reserves totaled $692.1 million, with a reasonably possible range of $625 million to $800 million. The Company agreed to acquire substantially all of the assets of JW Homes in January 2016 for approximately $430.0 million in cash.
Feb 8, 2016
2014
Pultegroup Annual Report, Year Ended Dec 31, 2014
PulteGroup, Inc. (NYSE: PHM), one of the largest U.S. homebuilders, reported a year of improved profitability in 2014. Home sale revenues rose 4% to $5.66 billion on closings that declined 3% to 17,196 units, as the average selling price increased 8% to $329,000. Homebuilding pretax income rose 33% to $635.2 million, and gross margin from home sales improved 280 basis points to 23.3%. Including Financial Services, consolidated pretax income was $689.8 million and net income was $474.3 million, or $1.26 per diluted share, compared with $2.62 billion in 2013, which was inflated by a $2.1 billion deferred tax valuation allowance reversal. The company reduced senior notes by $245.7 million, raised its quarterly dividend to $0.08 per share, repurchased $245.8 million of shares, and increased its share repurchase authorization by $750.0 million, leaving $738.5 million available at year-end. Cash and equivalents were $1.3 billion and the debt-to-total-capitalization ratio, excluding Financial Services debt, was 27.5%. Operating cash flow fell to $309.2 million from $881.1 million in 2013, mainly because inventories increased $346.6 million as land investment spending rose almost 40%. Risks noted in the filing include a $69.3 million increase in general liability insurance reserves tied to siding repairs in previously completed communities, total self-insurance reserves of $710.2 million, and exposure to mortgage loan repurchase claims. Financial Services income was helped by a $18.6 million reduction in loan origination liabilities, while its revenues fell 11%, reflecting heightened mortgage industry competition. Net new orders decreased 3% to 16,652 units, and the backlog ended the year at $1.9 billion (5,850 units).
Feb 4, 2015
2013
Pultegroup Annual Report, Year Ended Dec 31, 2013
PulteGroup, Inc. (NYSE: PHM) reported a sharp turnaround in 2013 as home sale revenues rose to $5.42 billion from $4.55 billion in 2012, with closings up to 17,766 units from 16,505 and an average selling price of $305,000 versus $276,000. Homebuilding income before income taxes increased to $479.1 million from $158.0 million, and home sale gross margin improved to 20.5% from 15.8%. Consolidated net income was $2.62 billion, or $6.72 per diluted share, driven largely by a $2.1 billion income tax benefit from the reversal of substantially all of the valuation allowance against deferred tax assets. Pretax income before that benefit was $527.8 million. Balance sheet and capital allocation improved meaningfully. Cash and equivalents reached $1.58 billion, senior notes were reduced to $2.06 billion from $2.51 billion after $461.4 million of early retirements, and the ratio of debt to total capitalization, excluding Financial Services debt, fell to 30.7% from 53.4% as stated in the filing. The company reinstated a quarterly dividend of $0.05 in July 2013 and repurchased $118.1 million of shares under a repurchase authorization increased to $352.3 million. Net new orders fell 10% to 17,080 units as active communities declined 14% to 577, and backlog ended at $1.9 billion (5,772 units). Key risks highlighted include exposure to claims on mortgage loans sold in 2006 and 2007, with reserves for self-insurance liabilities of $668.1 million at year-end, rising mortgage interest rates, competition in mortgage lending, and the reliance of future profitability on the realizability of deferred tax assets, which remain subject to Section 382 limitations. The company also announced a relocation of its corporate offices to Atlanta, Georgia, with expected costs of $21 million to $26 million for severance and relocation and $27 million to $32 million for lease termination and exit costs.
Feb 5, 2014
2012
Pultegroup Annual Report, Year Ended Dec 31, 2012
PulteGroup, Inc. (NYSE: PHM), one of the largest homebuilders in the United States, returned to profitability in 2012 as its homebuilding and financial services operations both improved. Net income was $206.1 million, or $0.54 per diluted share, compared with a net loss of $210.4 million in 2011. Homebuilding pre-tax income was $158.0 million versus a loss of $275.8 million in 2011, helped by lower land-related charges ($17.2 million versus $35.8 million), lower goodwill impairments (none in 2012 versus $240.5 million in 2011), and higher home sale gross margins of 15.8%, up from 12.8%. Home closings rose 8% to 16,505 units, net new orders rose 25% to 19,039 units, and ending backlog grew 65% to 6,458 units, at an average selling price of $276,000. Cash generation was strong. Net cash provided by operating activities was $760.1 million, aided by a $455.2 million reduction in inventories, and cash and equivalents rose to $1.40 billion at year-end. The company retired $592.4 million of senior notes during 2012, reducing senior notes to $2.51 billion, and recorded $32.1 million of losses on debt retirements. The ratio of debt to total capitalization, excluding Financial Services debt, was 53.4%, which management describes as above its desired target. No dividends were declared in 2012 or 2011. The filing also highlights ongoing risks. Shareholders' equity was $2.19 billion, but the company carries a full valuation allowance of $2.47 billion against its net deferred tax assets, and it estimates a range of $650 million to $800 million for reasonably possible losses on general liability construction defect claims, against recorded reserves of $721.3 million. Loan origination liabilities rose to $164.3 million, with reserve provisions of $49.0 million in 2012. Management expects 2013 to be a better year for U.S. housing than 2012, while noting that the timing of a broad, sustainable recovery remains uncertain.
Feb 6, 2013
2011
Pultegroup Annual Report, Year Ended Dec 31, 2011
PulteGroup, Inc. (NYSE: PHM), one of the largest homebuilders in the United States, reported a net loss of $210.4 million for 2011, an improvement from net losses of $1.10 billion in 2010 and $1.18 billion in 2009. Homebuilding revenues were $4.03 billion in 2011, down from $4.45 billion in 2010, with home closings falling 11% to 15,275 units. The company attributed the improved bottom line to higher gross margins, a leaner overhead structure, and much lower land-related charges and goodwill impairments. Home sale gross margin rose to 12.8% from 9.4%, and SG&A fell to 13.2% of home sale revenues from 20.3%, with the 2010 figure including $280.4 million of insurance reserve adjustments. Management said its outlook for 2012 is cautious and it is not anticipating a broad recovery in homebuilding in the near term. Balance sheet and liquidity remain significant considerations. Cash and equivalents were $1.08 billion at year-end, and senior notes totaled $3.09 billion, against shareholders' equity of $1.94 billion. The debt-to-total-capitalization ratio was 61.4%, or 49.5% net of cash. Operating cash flow was just $17.2 million in 2011, compared with $590.9 million in 2010. The company retired $321.1 million of senior notes during 2011, and it has not paid a common dividend since the first quarter of 2009. Net deferred tax assets of $2.5 billion remain fully reserved by a valuation allowance. Key risks flagged include loan origination liabilities tied to 2006–2007 mortgage loans, with related 2011 provisions of $59.3 million and a reasonably possible range of general liability self-insurance reserves of $650 million to $850 million against recorded reserves of $741.4 million. Orders were flat at 15,215 net new units, the cancellation rate was 19%, and active communities fell 11% to 700. Backlog was $1.1 billion at year-end.
Feb 9, 2012
2010
Pultegroup Annual Report, Year Ended Dec 31, 2010
PulteGroup, Inc. (NYSE: PHM) reported a net loss of $1.10 billion, or $2.90 per share, for 2010, compared with a net loss of $1.18 billion ($3.94 per share) in 2009. Results were driven by continued homebuilding weakness: home sale revenues rose to $4.42 billion from $3.87 billion, with unit settlements of 17,095 versus 15,013, while the average selling price was $259,000. Homebuilding still posted a pre-tax loss of $1.17 billion, including a $656.3 million goodwill impairment and $280.4 million of insurance-related charges. Gross margin on home sales improved to 9.4% from negative 10.5% in 2009, largely due to lower land and community valuation adjustments of $169.7 million versus $751.2 million. Liquidity was the company's main near-term focus. Cash and equivalents totaled $1.5 billion at year-end, with no borrowings under the unsecured revolving Credit Facility, which was cut to $250.0 million from $750.0 million in December 2010. The company stated it was in compliance with its Credit Facility covenants at December 31, 2010, but said it may need to take action to avoid violating the debt-to-tangible-capital ratio as early as March 31, 2011. Senior notes outstanding were $3.4 billion, and the company retired $898.5 million of them in the fourth quarter. Management described the outlook for 2011 as tempered, with uncertain timing for a sustainable homebuilding recovery and limited visibility into future earnings. The company also reported $934.7 million of federal tax refunds received in 2010, primarily from loss carrybacks under the 2009 Worker, Homeownership, and Business Assistance Act. Operating cash flow of $580.3 million was, according to management, negative after adjusting for these refunds. Shareholders' equity fell to $2.14 billion from $3.19 billion, and the company has not paid a dividend since the first quarter of 2009.
Feb 10, 2011
2009
Pultegroup Annual Report, Year Ended Dec 31, 2009
Pulte Homes, Inc. reported a 2009 net loss of $1,182,567 thousand ($1.18 billion, or $3.94 per share) on consolidated revenues of $4.08 billion, compared with a net loss of $1.47 billion in 2008. The results were driven by homebuilding losses before income taxes of $1.85 billion, including land and community valuation adjustments of $751.2 million, goodwill impairments of $563.0 million, and transaction and integration costs related to the Centex merger totaling $123.7 million. Home sale revenues fell to $3.87 billion from $5.98 billion, with unit settlements down to 15,013 from 21,022. The company completed its acquisition of Centex on August 18, 2009, which added $1.1 billion of revenues for the post-merger period and brought $1.46 billion of goodwill at the merger date. The balance sheet strengthened in liquidity terms. At December 31, 2009, cash and equivalents were $1.9 billion, with no borrowings outstanding under the $750.0 million unsecured revolving credit facility, and senior notes totaled $4.3 billion. The debt-to-tangible-capital ratio was 57.3% against a covenant maximum of 60.0%. The company was in compliance with its credit facility covenants at year end, though it noted that further market deterioration or additional land-related charges could affect compliance. The company also recorded an income tax receivable of $867.3 million from net operating loss carrybacks under the Worker, Homeownership, and Business Assistance Act of 2009, with refunds expected mainly in the first half of 2010. The filing describes a homebuilding industry still under pressure, with the company expecting difficult market conditions to persist for at least the near term. Management cited foreclosures, high unemployment, the expiration of the homebuyer tax credit in April 2010, and the Federal Reserve's planned exit from mortgage-backed securities purchases as factors that could weigh on results. The company's dividend was discontinued in November 2008, and no dividends were declared in 2009.
Feb 19, 2010
2008
Pultegroup Annual Report, Year Ended Dec 31, 2008
Pulte Homes, Inc. reported a net loss of $1.47 billion for fiscal 2008, compared with a net loss of $2.26 billion in 2007 and net income of $687.5 million in 2006. Homebuilding revenues fell to $6.11 billion from $9.12 billion in 2007, with home settlement units declining to 21,022 from 27,540. The company recorded land-related charges of $1.5 billion in 2008 and $2.2 billion in 2007, and goodwill impairments of $5.0 million in 2008. Management stated that it expects difficult market conditions to continue to affect the company for at least the near term and that the majority of its markets will remain challenging throughout 2009. The filing states that the company has recorded a net loss in each quarter since the fourth quarter of 2006. Liquidity was $1.7 billion in cash and equivalents at December 31, 2008, with no borrowings outstanding under the $1.2 billion unsecured revolving credit facility and $3.2 billion of senior notes outstanding. The company was in compliance with its credit facility covenants at year-end, but the filing warns that further deterioration or additional land-related charges could affect compliance. The filing also notes that the company anticipates operating under the facility's borrowing base limitation throughout 2009, and that it has no investment-grade ratings from the rating agencies. The Board discontinued the regular quarterly dividend effective in the first quarter of 2009. The company also reduced its active communities to 459 from 636 and its backlog to $631 million from $2.5 billion. Cash flow from operations was $1.22 billion in 2008, roughly unchanged from 2007, driven largely by inventory reductions. The company recorded a federal net operating loss for 2008 that it expects to carry back to 2006, resulting in a federal income tax refund of approximately $362.8 million. Its valuation allowance against deferred tax assets increased to $1.1 billion at year-end.
Feb 26, 2009
2007
Pultegroup Annual Report, Year Ended Dec 31, 2007
Pulte Homes, Inc. (now PulteGroup, Inc.) reported a sharp downturn for fiscal 2007. Homebuilding settlement revenues fell to $8.88 billion from $13.98 billion in 2006, and settlement units dropped to 27,540 from 41,487. Homebuilding posted a pre-tax loss of $2.51 billion, compared with pre-tax income of $1.01 billion in 2006. Consolidated net loss was $2.26 billion, or $(8.94) per diluted share, versus net income of $687.5 million in 2006. The company attributed the results to weakened demand, higher cancellation rates, and increased price discounts and incentives, along with $2.0 billion in land-related charges, $370 million of goodwill impairments, and $189.9 million of joint venture impairments. Balance sheet and liquidity were significantly affected. Total assets declined to $10.23 billion from $13.18 billion, and shareholders' equity fell to $4.32 billion from $6.58 billion. The company recorded a $621.9 million non-cash deferred tax valuation allowance, which drove the effective tax benefit rate to 8.9%. Cash and equivalents rose to $1.06 billion at year-end, and senior notes totaled $3.48 billion. Net cash from operating activities was $1.22 billion, driven largely by inventory reductions. The company's credit facility borrowing capacity was reduced to $1.6 billion in February 2008, and management said it expects challenging market conditions to continue throughout 2008. The filing also discloses an ongoing EPA Clean Water Act inquiry relating to storm water discharge practices, for which the company cannot currently estimate costs. Management also reported that it had reduced its land option commitments significantly, withdrawing from option contracts covering approximately 43,900 lots during 2007, and that it expects minimal new land investment in the near term.
Feb 25, 2008
2006
Pultegroup Annual Report, Year Ended Dec 31, 2006
Pulte Homes, Inc. reported a sharp decline in 2006 as the U.S. housing market weakened. Consolidated revenues were $14.27 billion in 2006, compared with $14.69 billion in 2005, and net income fell to $687.5 million from $1.49 billion. Diluted earnings per share were $2.66, versus $5.68 in 2005. Homebuilding pre-tax income dropped to $1.01 billion from $2.30 billion, driven by weaker demand, higher cancellation rates, greater sales incentives and $409.5 million of land and deposit write-downs and write-offs. Homebuilding settlements fell to 41,487 units from 45,630, and the homebuilding gross profit margin from home sales declined to 17.4% from 23.4%. The company remained financially sturdy despite the downturn. Shareholders' equity rose to $6.58 billion, cash and equivalents totaled $551.3 million, and senior notes stood at $3.54 billion. Its $2.01 billion unsecured revolving credit facility had no borrowings outstanding at year-end. Operating cash flow was negative $267.5 million in 2006, and the company repurchased $122.3 million of stock during the year. Net new orders fell 29% to 33,925 units, and backlog declined to 10,255 units from 17,817. Management stated that difficult market conditions would likely continue to affect the company for at least the near term. It is shortening its land pipeline, reducing production and slowing land purchases. The company also disclosed an ongoing EPA storm water discharge inquiry, for which it cannot currently estimate costs, and a $48.7 million judgment received in 2005 in the First Heights matter.
Feb 23, 2007
2005-A
Pultegroup Annual Report (Amendment), Year Ended Dec 31, 2005
This Form 10-K/A is Amendment No. 1 to Pulte Homes, Inc.'s annual report for the fiscal year ended December 31, 2005, filed to restate Note 2 (segment information) under SFAS No. 131. The restatement expands homebuilding segment disclosure into seven reportable segments (Northeast, Southeast, Florida, Midwest, Central, Southwest, and California) for 2005, 2004 and 2003. The filing states the restatement has no impact on the consolidated balance sheets, statements of operations, cash flows, or shareholders' equity. Forward-looking information has not been updated for events after the original filing. Financially, the company reported 2005 consolidated revenues of $14.69 billion and net income of $1.49 billion, or $5.68 per diluted share, up from $986.5 million in 2004. Homebuilding settlement revenues reached $14.37 billion on a record 45,630 units, with an average selling price of $315,000 and backlog of 17,817 units valued at approximately $6.3 billion at year-end. Homebuilding pre-tax income was $2.30 billion, and the gross profit margin from home sales rose to 23.4%. Total assets were $13.05 billion and shareholders' equity was $5.96 billion at December 31, 2005. The filing also highlights a $48.7 million judgment received in December 2005 related to First Heights litigation against the U.S. government, recorded as discontinued operations income, and the December 2005 sale of substantially all Mexico homebuilding operations for $131.5 million in cash. Risk factors include a potential EPA/DOJ storm water discharge enforcement matter for which the company cannot estimate costs.
Dec 22, 2006
2005
Pultegroup Annual Report, Year Ended Dec 31, 2005
Pulte Homes, Inc. reported record 2005 results, with net income of $1.49 billion ($5.68 per diluted share) on revenues of $14.69 billion, up from $986.5 million in 2004. Homebuilding settlement revenues reached $14.37 billion on a record 45,630 homes closed, at an average unit selling price of $315,000. Homebuilding pre-tax income was $2.30 billion, and the year-end backlog grew to 17,817 units valued at approximately $6.3 billion. The filing describes continued strong demand, market share gains, and a homebuilding gross profit margin from home sales of 23.4%, although the fourth-quarter margin fell to 22.3% due to inflation in land development costs. Operating cash flow was only $18.7 million in 2005, compared with cash used of $692.2 million in 2004, as inventory investment of $1.69 billion absorbed cash. The company ended the year with $1.00 billion in cash and equivalents and total assets of $13.05 billion. Senior and subordinated notes totaled $3.39 billion, and the debt-to-total capitalization ratio, excluding collateralized debt, was approximately 36.2%. Shareholders' equity rose to $5.96 billion. The results include $48.7 million received in December 2005 from a favorable federal judgment on the former First Heights thrift operation, recorded as discontinued operations income. The company sold its Argentina operations in January 2005 and substantially all of its Mexico homebuilding operations in December 2005, realizing cash of $131.5 million from the Mexico sale. In February 2006, the board increased the stock repurchase authorization by $200 million, bringing the available total to $219.5 million. The filing also discloses an ongoing EPA storm water discharge inquiry, which has been referred to the Department of Justice, and the company states it cannot currently estimate the costs of its resolution.
Mar 10, 2006
2004
Pultegroup Annual Report, Year Ended Dec 31, 2004
Pulte Homes, Inc. reported record 2004 results driven by strong homebuilding demand. Homebuilding revenues were $11.60 billion and homebuilding pre-tax income was $1.64 billion, compared with $8.89 billion and $1.01 billion in 2003. Consolidated net income was $986.5 million, or $7.58 per diluted share, versus $624.6 million, or $4.97 per diluted share, in 2003. Domestic settlements rose to 38,612 homes at an average selling price of $287,000, and net new orders reached a record 40,576 units. Year-end backlog was a record 15,916 units valued at about $5.2 billion. Results were weighed by a $2.07 billion increase in inventories, which pushed operating cash flow to a use of $698.3 million. Senior notes and subordinated notes totaled $2.86 billion at year-end, and the company issued $500 million of 5.25% notes in January 2004 and $400 million of 4.875% notes in July 2004. Subsequent to year-end, it sold $350 million of 5.2% notes due 2015 and $300 million of 6% notes due 2035. The filing also discloses the January 2005 sale of all Argentina operations, which were classified as discontinued operations, and an ongoing evaluation of strategic alternatives for the International homebuilding business in Mexico and Puerto Rico. The company disclosed an EPA storm water discharge inquiry that has been referred to the Department of Justice, with the outcome and costs not estimable. It also disclosed a pending appeal of a $48.7 million judgment in its First Heights-related claim against the United States.
Mar 10, 2005
2003
Pultegroup Annual Report, Year Ended Dec 31, 2003
Pulte Homes, Inc. reported 2003 consolidated revenues of $9.05 billion and net income of $624.6 million, or $4.97 per diluted share, compared with $453.6 million ($3.67 per diluted share) in 2002. Homebuilding drove the results: Domestic Homebuilding settled a record 32,693 homes at an average selling price of $259,000, and pre-tax homebuilding income rose to $1.00 billion from $724.1 million. Gross profit margin from home sales reached 20.6%, and the year-end domestic backlog grew to 13,952 units valued at approximately $4.1 billion. Financial Services pre-tax income was $68.8 million, with mortgage origination principal volume up 32% and a capture rate of 82.7%. Balance sheet growth was substantial. House and land inventories rose to $5.53 billion from $4.29 billion, and senior and subordinated notes totaled $2.15 billion. Operating cash flow was negative $301.8 million, reflecting heavy land investment, while the company issued $300 million of 6.25% senior notes due 2013 and $400 million of 6.375% senior notes due 2033 during 2003, and in January 2004 sold $500 million of 5.25% senior notes due 2014. The company replaced its revolving credit facility with an $850 million facility expiring in 2008, and the quarterly dividend was raised 150% to $.05 per share. A two-for-one stock split took effect January 2, 2004. The filing also discloses that the company is evaluating long-term strategic alternatives for its International Homebuilding operations in Mexico, Puerto Rico and Argentina. A Court of Federal Claims judgment in September 2003 awarded the Pulte Parties approximately $48.7 million, but the government and the Pulte Parties have appealed, and any gain will be recognized only upon final resolution.
Feb 27, 2004
2002
Pultegroup Annual Report, Year Ended Dec 31, 2002
Pulte Homes, Inc. (PHM) reported record 2002 results, with revenues of $7.47 billion and net income of $453.6 million, or $7.35 per diluted share, compared with $5.39 billion and $301.4 million in 2001. Homebuilding pre-tax income rose to $724.1 million from $512.3 million, driven by Domestic Homebuilding settlements of 28,903 units (up from 22,915) at an average selling price of $242,000 and a gross margin of 20.1%. Financial Services pre-tax income increased to $66.7 million, while Corporate pre-tax loss widened to $62.0 million on higher interest costs tied to growing debt. The balance sheet expanded substantially: total assets reached $6.89 billion and shareholders' equity rose to $2.76 billion, while senior and subordinated notes totaled $1.91 billion. At year-end the company held $613.2 million in cash, had no borrowings under its $570 million unsecured revolving credit facility, and reported domestic backlog of 10,605 units valued at about $2.9 billion. Net cash provided by operating activities was $162.2 million, after $418.8 million of cash used in 2001, as inventories continued to build. Looking ahead, the company sold $300 million of 6.25% senior notes due 2013 in February 2003, with proceeds to retire debt due or called in 2003, and it expects its 2003 effective tax rate to be about 39.0%. Pulte also disclosed that it is pursuing approximately $80 million in after-tax damages from the U.S. government over a First Heights thrift-related contract claim, the amount of which remains unresolved.
Mar 11, 2003
2001
Pultegroup Annual Report, Year Ended Dec 31, 2001
Pulte Homes, Inc. (filed under this name; now PulteGroup, Inc.) reported 2001 revenues of $5.38 billion and net income of $301.4 million, or $5.99 per diluted share, up from $188.5 million ($4.47 per diluted share) in 2000. Homebuilding pre-tax income rose to $520.9 million from $392.4 million, driven by 22,915 Domestic settlements at an average selling price of $225,000 and gross profit margin of 20.0%. The results include five months of Del Webb Corporation, acquired in a stock merger completed July 31, 2001, which added substantial backlog: year-end Domestic backlog rose 58% to 8,678 units, valued at $2.1 billion. Balance sheet growth was significant. Total assets reached $5.69 billion versus $2.89 billion a year earlier, and long-term indebtedness rose to $1.74 billion from $677.6 million, following $200 million and $500 million Senior Notes issuances and assumed Del Webb debt. Operating cash flow was negative $418.8 million, reflecting inventory growth, and cash fell to $72.1 million. The company stated it expects to reduce its debt-to-total capitalization, excluding non-guarantor asset-secured borrowings, which was 44.8%, to 40% by the end of 2002. The filing also details the settlement of First Heights-related litigation with the FDIC in October 2001 for $41.5 million, and a pending Court of Federal Claims case in which the Pulte Parties are seeking approximately $80 million in after-tax damages after a August 17, 2001 liability ruling against the United States government.
Mar 8, 2002
1999
Pultegroup Annual Report, Year Ended Dec 31, 1999
Pulte Corporation's 10-K for fiscal 1999 reports a homebuilding-focused year with net income of $178.2 million, or $4.07 per diluted share, up from $102.2 million, or $2.33 per diluted share, in 1998. Consolidated revenues rose to $3.73 billion from $2.87 billion. Domestic Homebuilding settlements increased to 19,276 units from 15,897, and net new orders reached a company record of 19,153 units. Homebuilding pre-tax income was $316.6 million versus $173.3 million, and the Company stated its gross profit margin for Domestic Homebuilding rose to 17.9% from 16.1%. Average unit selling price increased to $186,000 from $175,000. Balance sheet capacity improved as shareholders' equity grew to $1.09 billion from $921.4 million, and long-term indebtedness declined to $526.0 million from $542.0 million. Cash and equivalents fell to $51.7 million from $125.2 million. The Board approved a stock repurchase plan of up to $100 million on January 20, 2000, and through February 29, 2000 the Company had bought 1,066,600 shares for $18.3 million. The principal risk disclosed is the First Heights litigation with the FDIC. A March 5, 1999 Final Judgment requires PDCI and First Heights to pay approximately $221.3 million, including interest. The Company estimates that, if upheld in full on appeal, after-tax charges against discontinued operations would be approximately $88 million plus post-judgment interest. The Company has appealed to the Sixth Circuit, has posted bonds of $117 million, and states that the judgment is not expected to have a material impact on liquidity.
Mar 2, 2000
1998
Pultegroup Annual Report, Year Ended Dec 31, 1998
Pulte Corporation, a Michigan holding company, reported net income of $102.2 million, or $2.33 per diluted share, for the fiscal year ended December 31, 1998, up from $52.8 million, or $1.20 per diluted share, in 1997. Consolidated revenues rose to $2.87 billion from $2.52 billion. Homebuilding is the core business: domestic settlements reached a record 15,897 units, net new orders hit a record 17,918 units, and year-end backlog grew to 5,414 units, or approximately $999 million. Pre-tax income from homebuilding increased to $173.3 million, and financial services pre-tax income rose to $15.2 million, driven by mortgage origination growth. Results were partly offset by the International segment's losses and a corporate pre-tax loss of $22.7 million. The most significant risk disclosed is litigation with the FDIC over First Heights, the company's discontinued thrift subsidiary. On March 5, 1999, the U.S. District Court entered a Final Judgment requiring PDCI and First Heights to pay the FDIC approximately $221.3 million including interest. The company estimates that, if upheld in full on appeal, after-tax charges against discontinued operations would be about $88 million plus post-judgment interest, and it plans to appeal. The company also acquired DiVosta & Company and Radnor Homes in 1998 and formed an Active Adult joint venture with Blackstone Real Estate Advisors. At year-end 1998 the company held $125.2 million of cash and equivalents and total indebtedness of $570.1 million, and shareholders' equity was $921.4 million, or $21.35 per share. The company had no borrowings under its $210 million unsecured revolving credit facility at year-end. Management expects a 1999 effective tax rate of 39% to 40%.
Mar 12, 1999
1997
Pultegroup Annual Report, Year Ended Dec 31, 1997
Pulte Corporation, the holding company for the Pulte Home Corporation group, reported 1997 net income of $52,761 thousand, or $2.40 per diluted share, down from $179,643 thousand ($7.14 per share) in 1996, which had included a $110,000 thousand tax benefit from discontinued thrift operations. Revenues rose to $2,523,991 thousand from $2,384,283 thousand. Homebuilding is the core business: unit settlements increased 5% to 15,322 units, net new orders rose 8% to a company-record 15,488 units, and the average sales price reached $162,000. Gross margin improved to 14.9% from 14.8%. Pre-tax income also absorbed a one-time restructuring charge of $20,000 thousand, or $.56 per diluted share, tied to an August 1997 reorganization. Financial services revenue fell to $34,038 thousand from $50,197 thousand, and pre-tax income from financial services dropped to $5,350 thousand. Corporate interest expense rose, and the company repurchased $74,673 thousand of stock during 1997. Total long-term indebtedness increased to $650,169 thousand from $541,505 thousand, driven by a $150,000 thousand 7.625% Senior Notes issuance in October 1997, and cash and equivalents stood at $245,156 thousand at year-end. Shareholders' equity was $812,837 thousand, or $38.21 per share. The filing also discloses material pending litigation with the FDIC over First Heights' former thrift operations. A March 5, 1998 court ruling went in the FDIC's favor on three of four issues. The company said it would appeal and that an unsuccessful appeal could produce an after-tax charge of as much as $40,000 thousand. The company also agreed to sell its building materials subsidiary, Builders' Supply & Lumber Co., and its 51% interest in Expression Homes, with closings expected in the first quarter of 1998.
Mar 13, 1998
1996
Pultegroup Annual Report, Year Ended Dec 31, 1996
Pulte Corporation, the publicly held parent of the Pulte Home Corporation group, reported net income of $179,643 thousand ($7.17 per primary share) for 1996, up from $58,346 thousand ($2.13 per share) in 1995. The result was driven largely by $116,432 thousand of income from discontinued operations, which included a $110,000 thousand tax benefit from net operating losses tied to its exited thrift business, First Heights. Income from continuing operations before taxes and extraordinary items rose to $102,463 thousand from $82,024 thousand, and income from continuing operations was $63,211 thousand ($2.52 per share) versus $48,839 thousand in 1995. The homebuilding operation is the core business. Unit settlements rose to 14,673 from 12,456, and sales (settlements) revenue reached $2,326,462 thousand, up from $1,935,703 thousand. Net new orders hit a record 14,443 units, and the company reported 395 active communities and 41 markets at year-end. Gross profit margin improved to 14.8% from 14.5%, and return on average shareholders' equity was 22.6%. Management cautioned that the slowdown in net new orders and competitive conditions would challenge efforts to improve gross margins in 1997. The balance sheet shows total assets of $1,985,141 thousand and total indebtedness of $735,658 thousand, down from $921,127 thousand a year earlier. Shareholders' equity rose to $829,273 thousand, and the company repurchased 3,807,932 shares for $99,561 thousand during 1996. The company is also in litigation with the FDIC over tax benefit sharing from its thrift acquisition, which it disputes.
Mar 6, 1997