Skip to content
AnalystLens

Pultegroup Annual Report, Year Ended Dec 31, 1999

Filing Date
Filed March 2, 2000
Period End
December 31, 1999
Security
PHM
In the record · 2016–202610-K1110-Q338-K109

PHM filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 109 current reports (8-K) between 2016 and 2026.

  1. Impairment8-K · May ’17May ’17
  2. Leadership change8-K · Mar ’19Mar ’19
  3. Material agreement8-K · Jul ’21Jul ’21
  4. Material agreement8-K · Aug ’25Aug ’25

01—Abstract

Summary

Summary of the 10-K filed March 2, 2000. Cited figures are marked; the original filing is the authoritative source.

Pulte Corporation's 10-K for fiscal 1999 reports a homebuilding-focused year with net income of $178.2 milliona, 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 billionb 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 $186,000c 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 milliond 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.

02—Key points

Key Highlights

  1. Net income rose to $178.2 million ($4.07 diluted EPS) in 1999 from $102.2 million ($2.33) in 1998.
  2. Domestic Homebuilding settlements increased 21% to a record 19,276 units; net new orders reached a Company record 19,153 units, up 7%.
  3. Gross profit margin for Domestic Homebuilding increased to 17.9% from 16.1%, and average selling price rose to $186,000 from $175,000.
  4. Homebuilding pre-tax income increased to $316.6 million from $173.3 million, with International and Active Adult operations returning to profitability.
  5. Shareholders' equity grew to $1.09 billion from $921.4 million, while long-term indebtedness decreased to $526.0 million from $542.0 million.
  6. The Board authorized a stock repurchase plan of up to $100 million on January 20, 2000; 1,066,600 shares were purchased through February 29, 2000 for $18.3 million.
  7. The First Heights litigation carries a Final Judgment of approximately $221.3 million against PDCI and First Heights; the Company estimates an after-tax charge of about $88 million plus interest if upheld, and is appealing to the Sixth Circuit.

03—Questions

Frequently Asked Questions

  1. How did Pulte perform financially in 1999?

    Revenues rose to $3.73 billion from $2.87 billion in 1998. Income from continuing operations was $178.3 million, or $4.07 per diluted share, compared with $101.1 million, or $2.30, in 1998. Net income was $178.2 million, or $4.07 per diluted share, versus $102.2 million, or $2.33, a year earlier.

  2. What drove the growth in Homebuilding results?

    The filing attributes the increase to a 21% rise in Domestic Homebuilding unit settlements to 19,276 units, a higher average selling price of $186,000, and a gross margin improvement to 17.9% from 16.1%. Pre-tax income from homebuilding increased to $316.6 million from $173.3 million, and the International and Active Adult operations reversed prior-year losses.

  3. What is the main legal risk disclosed in the filing?

    The First Heights-related litigation with the FDIC is the principal legal matter. A March 5, 1999 Final Judgment requires PDCI and First Heights to pay approximately $221.3 million, including interest, and the FDIC has acknowledged about $105 million already paid or withheld that the Company believes it is entitled to credit for. The Company has appealed to the Sixth Circuit, posted $117 million in bonds, and does not currently believe the judgment will have a material impact on liquidity.

  4. What capital return actions did the Company take?

    The Board approved a stock repurchase plan of up to $100 million on January 20, 2000. Through February 29, 2000, the Company had purchased 1,066,600 shares for an aggregate price of $18.3 million. The Company also paid cash dividends of $.16 per share in 1999, compared with $.15 in 1998.

  5. How is the Company's liquidity position described?

    Cash and equivalents at December 31, 1999 were $51.7 million, down from $125.2 million. The Company had $375.0 million in committed unsecured revolving credit facilities, with $7.0 million borrowed. Long-term indebtedness totaled $526.0 million, including $487.7 million of unsecured senior notes. Net cash from operating activities was a source of $11.6 million in 1999 versus a use of $129.3 million in 1998.

04—Continue

← View all 10-K filings