01—Abstract
Summary
Summary of the 8-K filed July 23, 2024. Cited figures are marked; the original filing is the authoritative source.
PulteGroup, Inc. (NYSE: PHM) reported second quarter 2024 results for the period ended June 30, 2024, in an earnings press release furnished as Exhibit 99.1 to this Form 8-K.
Net income was $809.1 milliona, or $3.83 per diluted share, up from $720.3 million, or $3.21 per diluted share, in the prior-year quarter. The results include a $52 million pre-tax insurance benefit and a $13 million benefit from the favorable resolution of certain state tax matters. Home sale revenues rose to $4.45 billion, closings increased to 8,097 homes, and the average selling price rose to $549 thousand, while the home sale gross margin reached 29.9%.
Orders and backlog were steady. Net new orders were 7,649 homes, compared with 7,947 a year earlier, and the dollar value of net new orders was $4.36 billionb. Unit backlog ended the quarter at 12,982 homes, valued at $8.11 billion.
Financial services pre-tax income was $63.4 millionc, versus $46.5 million in the prior year, and the mortgage capture rate was 86%. Capital allocation was a major theme. The company repurchased 2.8 million shares for $314 million and completed a tender offer for $300 million of senior notes.
Notes payable fell to $1.65 billiond from $1.96 billion at December 31, 2023, cash ended at $1.39 billion, and the debt-to-capital ratio declined to 12.8% from 15.9%. Management cited a trailing twelve-month return on equity of 27.1%.
02—Key points
Key Highlights
- Diluted EPS of $3.83 versus $3.21 a year earlier; net income of $809.1 million versus $720.3 million.
- Home sale revenues of $4.45 billion, up from $4.06 billion; closings rose to 8,097 homes from 7,518.
- Home sale gross margin of 29.9%, up 30 basis points year over year and from the first quarter of 2024.
- Net new orders of 7,649 homes, down from 7,947, with a dollar value of $4.36 billion; backlog of 12,982 homes valued at $8.11 billion.
- Q2 earnings include a $52 million pre-tax insurance benefit and a $13 million state tax benefit.
- Repurchased $314 million of common shares and completed a $300 million senior notes tender offer.
- Notes payable reduced to $1.65 billion; debt-to-capital ratio of 12.8% versus 15.9% at year-end 2023.
03—Questions
Frequently Asked Questions
How did PulteGroup perform in the second quarter of 2024?
Net income was $809.1 million, or $3.83 per diluted share, compared with $720.3 million, or $3.21 per diluted share, in the second quarter of 2023. Results include a $52 million pre-tax insurance benefit and a $13 million state tax benefit.
Did order activity grow in the quarter?
Net new orders were 7,649 homes, compared with 7,947 homes a year earlier. The dollar value of net new orders was $4.36 billion, compared with $4.27 billion in the prior-year quarter.
What did the company do with its capital?
PulteGroup repurchased 2.8 million common shares for $314 million, at an average price of $113.79 per share. It also completed a tender offer for $300 million of senior notes, which reduced notes payable to $1.65 billion.
How is the company's leverage position?
The debt-to-capital ratio was 12.8% at June 30, 2024, down from 15.9% at December 31, 2023. The company ended the quarter with $1.39 billion of cash and cash equivalents.
What drove the financial services results?
Financial services pre-tax income was $63.4 million, compared with $46.5 million a year earlier. The filing attributes the increase to gains across mortgage, title and insurance, and the mortgage capture rate rose to 86% from 80%.
04—Continue