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Pultegroup Annual Report, Year Ended Dec 31, 2001

Filing Date
Filed March 8, 2002
Period End
December 31, 2001
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 8, 2002. Cited figures are marked; the original filing is the authoritative source.

Pulte Homes, Inc. (filed under this name; now PulteGroup, Inc.) reported 2001 revenues of $5.38 billiona 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 millionb 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 billionc 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 milliond, 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.

02—Key points

Key Highlights

  1. Net income of $301.4 million ($5.99 per diluted share) in 2001, compared with $188.5 million ($4.47 per diluted share) in 2000.
  2. Total revenues of $5.38 billion, with homebuilding revenues of $5.31 billion.
  3. Domestic Homebuilding settled 22,915 units at an average selling price of $225,000, and gross profit margin rose to 20.0% from 18.8%.
  4. Net new orders reached a record 26,116 units, and year-end backlog grew 58% to 8,678 units valued at $2.1 billion, including Del Webb's units.
  5. Del Webb merger completed July 31, 2001, in a tax-free stock transaction; goodwill of $284.0 million was recorded.
  6. Long-term indebtedness rose to $1.74 billion from $677.6 million, and the company expects its debt-to-total capitalization to reach 40% by year-end 2002 from 44.8%.
  7. Settled the First Heights litigation with the FDIC in October 2001 for $41.5 million, and is pursuing about $80 million in after-tax damages in the Court of Federal Claims case.

03—Questions

Frequently Asked Questions

  1. How did the Del Webb merger affect Pulte's 2001 results?

    The merger, completed July 31, 2001, was accounted for as a purchase. Del Webb's operations were included for five months of 2001. The filing cites Del Webb's contribution to order and settlement volumes, a backlog of 3,171 Del Webb units at year-end, and a purchase price of $833.98 million that produced $284.0 million of goodwill.

  2. What drove the increase in homebuilding profitability?

    Pre-tax homebuilding income rose to $520.9 million from $392.4 million. The filing attributes this to a 9% increase in average selling price to $225,000, a 120 basis point improvement in gross margin to 20.0%, and the inclusion of Del Webb operations, partly offset by higher selling, general and administrative expenses.

  3. Why was operating cash flow negative in 2001?

    Net cash used in operating activities was $418.8 million. The filing says higher net income was offset by increases in inventories and residential mortgage loans available-for-sale, along with the resolution of the First Heights litigation.

  4. What is the status of the First Heights litigation?

    In October 2001, the company settled the District Court Case and related appeal with the FDIC by paying $41.5 million and allowing the FDIC to keep amounts previously withheld. The Court of Federal Claims case, in which the company seeks about $80 million in after-tax damages, is continuing after an August 17, 2001 ruling that the United States was liable for breach of contract.

  5. How is the company financing its growth and debt?

    In February 2001 the company sold $200 million of 8 1/8% Senior Notes due 2011, and in August 2001 it sold $500 million of 7 7/8% Senior Notes due 2011 to repay debt assumed from Del Webb. At year-end, $110 million was outstanding under its $560 million unsecured revolving credit facilities, and cash and equivalents totaled $72.1 million.

04—Continue

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