PulteGroup, Inc. (NYSE:PHM) announced today financial results for
its fourth quarter ended December 31, 2017. For the quarter,
the Company’s reported net income was $77 million, or $0.26 per
share. Adjusted net income for the period was $253 million,
or $0.85 per share, after excluding a $66 million pre-tax benefit
associated with insurance related adjustments, a $57 million
pre-tax charge relating to land adjustments, and $181 million of
income tax charges primarily relating to the revaluation of the
Company’s deferred tax assets following newly enacted federal tax
legislation.
Reported net income for the prior year fourth quarter was $273
million, or $0.83 per share. Adjusted net income for the
prior year fourth quarter was $223 million, or $0.67 per share,
after excluding $0.16 per share of insurance and income tax
benefits.
“Reflecting the continued strength of housing demand, the value
of new orders in the quarter increased 22% over the prior year,
helping to grow our year-end backlog to a 12-year high of $4.0
billion,” said Ryan Marshall, President and CEO of
PulteGroup. “Consistent with our strategic objectives, we
leveraged a 12% increase in quarterly revenues into a 27% increase
in adjusted earnings per share.”
“Ongoing gains in profitability and cash flow generation, which
allowed us to reinvest in our business while repurchasing 11% of
our outstanding common shares in 2017, also gave our Board the
confidence to announce today a $500 million increase to our share
repurchase plan,” added Marshall. “Given expectations for
further expansion in the economy, along with ongoing gains in
employment and buyer demand, we remain highly constructive on the
industry. With our large backlog and robust land pipeline, we
are well positioned to continue growing our business and building
even greater value for our shareholders.”
Fourth Quarter Results
Home sale revenues for the fourth quarter increased 12% over the
prior year to $2.7 billion. Higher revenues for the period
were driven by a 7% increase in closings to 6,632 homes, combined
with a 5%, or $19,000, increase in average sales price to
$410,000.
The Company’s fourth quarter adjusted home sale gross margin,
which excludes the $57 million land charge, was 23.8%.
Inclusive of this charge, the Company’s reported gross margin for
the fourth quarter was 21.6%. Prior year adjusted and
reported gross margins were 24.9% and 24.8%, respectively.
The Company’s fourth quarter adjusted homebuilding SG&A
expense, which excludes the $66 million insurance-related benefit,
was $268 million, or 9.8% of home sale revenues. The
comparable prior year adjusted SG&A expense of $263 million, or
10.8% of home sale revenues, excludes a $55 million benefit
associated with an insurance-related adjustment recorded in that
quarter. Reported SG&A expense in the current quarter was
$202 million, or 7.4% of home sale revenues, compared with fourth
quarter 2016 reported SG&A expense of $208 million, or 8.6% of
home sale revenues.
The value of fourth quarter net new orders increased 22% over
the prior year to $2.0 billion, while the number of orders
increased 14% to 4,805 homes. For the fourth quarter, the
Company operated out of 790 communities, which is up 9% over the
fourth quarter of 2016.
Backlog value at the end of the fourth quarter was $4.0 billion,
which is up 35% over the prior year and is the Company’s highest
year-end backlog in over a decade. On a unit basis, backlog
for the quarter was up 21% over last year to 8,996 homes. The
average price of homes in backlog increased 12% over the prior year
to $442,000.
The Company's financial services operations reported fourth
quarter pre-tax income of $23 million compared with $25 million in
the prior year. The decrease in pre-tax income was primarily
the result of a more competitive operating environment which
impacted pricing during the period. Mortgage capture rate for
the quarter was 81%, compared with 82% in the prior year.
For the quarter, the Company’s adjusted income tax expense,
which excludes the $181 million income tax charge relating
primarily to the revaluation of its deferred tax assets resulting
from the Tax Cuts and Jobs Act enacted in December 2017, was $147
million. The Company’s adjusted effective tax rate for the
fourth quarter was 36.8%.
During the quarter, the Company repurchased 7.6 million common
shares for $251 million, or an average price of $33.09 per
share. For the year, the Company repurchased a total of 35.4
million common shares, or 11% of its outstanding shares, for $910
million, or an average price of $25.70 per share. The Company
also used available cash to retire $123 million of notes that
matured in the fourth quarter.
Share Repurchase Plan Increased by $500
Million
In a separate press release issued today, the Company announced
that its Board of Directors approved an increase to its existing
share repurchase plan of $500 million. As of December 31,
2017, the Company had $94 million of authorization remaining in its
share repurchase plan. The Company expects that share
repurchases will be made from time to time in the open market,
through privately negotiated transactions or otherwise subject to
market conditions, applicable legal requirements, and other
relevant factors.
A conference call discussing PulteGroup's fourth quarter 2017
results is scheduled for Tuesday, January 30, 2018, 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 press 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 the impairment charge with respect to certain land parcels 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; 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, including, but not limited to
the Tax Cuts and Jobs Act 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; 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, 2016, 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
approximately 50 markets throughout the country. Through its brand
portfolio that includes Centex, Pulte Homes, Del Webb, DiVosta
Homes 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 conducts extensive research to provide
homebuyers with innovative solutions and consumer inspired homes
and communities to make lives better.
For more information about PulteGroup, Inc. and PulteGroup
brands, go to www.pultegroupinc.com; www.pulte.com; www.centex.com;
www.delwebb.com; www.divosta.com and www.jwhomes.com.
Company ContactInvestors: Jim Zeumer(404) 978-6434Email:
jim.zeumer@pultegroup.com
| PulteGroup, Inc.Consolidated
Results of Operations($000's omitted, except per
share data)(Unaudited) |
| |
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Year Ended |
| |
December 31, |
|
December 31, |
| |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
Revenues: |
|
Homebuilding |
|
|
|
|
|
|
|
| Home sale
revenues |
$ |
2,717,031 |
|
|
$ |
2,423,472 |
|
|
$ |
8,323,984 |
|
|
$ |
7,451,315 |
|
| Land sale
revenues |
20,360 |
|
|
15,431 |
|
|
57,106 |
|
|
36,035 |
|
| |
2,737,391 |
|
|
2,438,903 |
|
|
8,381,090 |
|
|
7,487,350 |
|
| Financial
Services |
56,166 |
|
|
54,175 |
|
|
192,160 |
|
|
181,126 |
|
| Total
revenues |
2,793,557 |
|
|
2,493,078 |
|
|
8,573,250 |
|
|
7,668,476 |
|
| |
|
|
|
|
|
|
|
| Homebuilding
Cost of Revenues: |
|
|
|
|
|
|
|
| Home sale
cost of revenues |
(2,128,931 |
) |
|
(1,821,672 |
) |
|
(6,461,152 |
) |
|
(5,587,974 |
) |
| Land sale
cost of revenues |
(18,500 |
) |
|
(14,256 |
) |
|
(134,449 |
) |
|
(32,115 |
) |
| |
(2,147,431 |
) |
|
(1,835,928 |
) |
|
(6,595,601 |
) |
|
(5,620,089 |
) |
| |
|
|
|
|
|
|
|
| Financial
Services expenses |
(33,139 |
) |
|
(29,370 |
) |
|
(119,289 |
) |
|
(108,573 |
) |
| Selling,
general, and administrative expenses |
(201,607 |
) |
|
(207,647 |
) |
|
(891,581 |
) |
|
(957,150 |
) |
| Other expense,
net |
(2,613 |
) |
|
(6,412 |
) |
|
(27,951 |
) |
|
(48,814 |
) |
| Income before
income taxes |
408,767 |
|
|
413,721 |
|
|
938,828 |
|
|
933,850 |
|
| Income tax
expense |
(331,352 |
) |
|
(140,549 |
) |
|
(491,607 |
) |
|
(331,147 |
) |
| Net
income |
$ |
77,415 |
|
|
$ |
273,172 |
|
|
$ |
447,221 |
|
|
$ |
602,703 |
|
| |
|
|
|
|
|
|
|
| Net income per
share: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.26 |
|
|
$ |
0.83 |
|
|
$ |
1.45 |
|
|
$ |
1.76 |
|
|
Diluted |
$ |
0.26 |
|
|
$ |
0.83 |
|
|
$ |
1.44 |
|
|
$ |
1.75 |
|
| Cash
dividends declared |
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.36 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
|
| Number of
shares used in calculation: |
|
|
|
|
|
|
|
|
Basic |
292,174 |
|
|
325,975 |
|
|
305,089 |
|
|
339,747 |
|
| Effect of
dilutive securities |
1,318 |
|
|
1,834 |
|
|
1,725 |
|
|
2,376 |
|
|
Diluted |
293,492 |
|
|
327,809 |
|
|
306,814 |
|
|
342,123 |
|
| |
| PulteGroup, Inc.Condensed
Consolidated Balance Sheets($000's
omitted)(Unaudited) |
| |
December 31, 2017 |
|
December 31, 2016 |
| |
|
ASSETS |
|
|
|
| |
|
|
|
| Cash and
equivalents |
$ |
272,683 |
|
|
$ |
698,882 |
|
| Restricted
cash |
33,485 |
|
|
24,366 |
|
| Total cash,
cash equivalents, and restricted cash |
306,168 |
|
|
723,248 |
|
| House and
land inventory |
7,147,130 |
|
|
6,770,655 |
|
| Land held
for sale |
68,384 |
|
|
31,728 |
|
| Residential
mortgage loans available-for-sale |
570,600 |
|
|
539,496 |
|
| Investments
in unconsolidated entities |
62,957 |
|
|
51,447 |
|
| Other
assets |
745,123 |
|
|
857,426 |
|
| Intangible
assets |
140,992 |
|
|
154,792 |
|
| Deferred
tax assets, net |
645,295 |
|
|
1,049,408 |
|
| |
$ |
9,686,649 |
|
|
$ |
10,178,200 |
|
| |
|
|
|
| |
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
| |
|
|
|
|
Liabilities: |
|
|
|
| Accounts payable |
$ |
393,815 |
|
|
$ |
405,455 |
|
| Customer deposits |
250,779 |
|
|
187,891 |
|
| Accrued and other liabilities |
1,356,333 |
|
|
1,429,712 |
|
| Income tax liabilities |
86,925 |
|
|
34,860 |
|
| Financial Services debt |
437,804 |
|
|
331,621 |
|
| Notes payable |
3,006,967 |
|
|
3,129,298 |
|
| Total liabilities |
5,532,623 |
|
|
5,518,837 |
|
|
Shareholders' equity |
4,154,026 |
|
|
4,659,363 |
|
| |
$ |
9,686,649 |
|
|
$ |
10,178,200 |
|
|
|
| PulteGroup, Inc.Consolidated
Statements of Cash Flows($000's
omitted)(Unaudited) |
| |
Year Ended |
| |
December 31, |
| |
2017 |
|
2016 |
|
Cash flows from operating activities: |
| Net income |
$ |
447,221 |
|
|
$ |
602,703 |
|
| Adjustments to reconcile net income to net cash from operating
activities: |
|
|
|
| Deferred income tax expense |
422,307 |
|
|
334,787 |
|
| Land-related charges |
191,913 |
|
|
19,357 |
|
| Depreciation and amortization |
50,998 |
|
|
54,007 |
|
| Share-based compensation expense |
33,683 |
|
|
22,228 |
|
| Loss on debt retirements |
— |
|
|
657 |
|
| Other, net |
(1,789 |
) |
|
1,614 |
|
| Increase (decrease) in cash due to: |
|
|
|
| Inventories |
(569,030 |
) |
|
(897,092 |
) |
| Residential mortgage loans available-for-sale |
(33,009 |
) |
|
(99,527 |
) |
| Other assets |
55,099 |
|
|
(45,721 |
) |
| Accounts payable, accrued and other liabilities |
65,684 |
|
|
75,257 |
|
| Net cash
provided by (used in) operating activities |
663,077 |
|
|
68,270 |
|
|
Cash flows from investing activities: |
|
|
|
| Capital expenditures |
(32,051 |
) |
|
(39,295 |
) |
| Investment in unconsolidated subsidiaries |
(23,037 |
) |
|
(14,539 |
) |
| Cash used for business acquisition |
— |
|
|
(430,458 |
) |
| Other investing activities, net |
4,846 |
|
|
13,100 |
|
| Net cash
used in investing activities |
(50,242 |
) |
|
(471,192 |
) |
|
Cash flows from financing activities: |
|
|
|
| Proceeds from debt issuance |
— |
|
|
1,995,937 |
|
| Repayments of debt |
(134,747 |
) |
|
(986,919 |
) |
| Borrowings under revolving credit facility |
2,720,000 |
|
|
619,000 |
|
| Repayments under revolving credit facility |
(2,720,000 |
) |
|
(619,000 |
) |
| Financial Services borrowings, net |
106,183 |
|
|
63,744 |
|
| Stock option exercises |
27,720 |
|
|
5,845 |
|
| Share repurchases |
(916,323 |
) |
|
(603,206 |
) |
| Dividends paid |
(112,748 |
) |
|
(124,666 |
) |
| Net cash
provided by (used in) financing activities |
(1,029,915 |
) |
|
350,735 |
|
| Net
increase (decrease) |
(417,080 |
) |
|
(52,187 |
) |
| Cash, cash
equivalents, and restricted cash at beginning of period |
723,248 |
|
|
775,435 |
|
| Cash, cash
equivalents, and restricted cash at end of period |
$ |
306,168 |
|
|
$ |
723,248 |
|
| |
|
|
|
|
Supplemental Cash Flow Information: |
|
|
|
| Interest paid (capitalized), net |
$ |
(942 |
) |
|
$ |
(26,538 |
) |
| Income taxes paid (refunded), net |
$ |
14,875 |
|
|
$ |
2,743 |
|
| |
| PulteGroup, Inc.Segment
Data($000's
omitted)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
|
2017 |
|
|
2016 |
|
HOMEBUILDING: |
| Home sale revenues |
$ |
2,717,031 |
|
|
$ |
2,423,472 |
|
|
$ |
8,323,984 |
|
|
$ |
7,451,315 |
|
| Land sale revenues |
20,360 |
|
|
15,431 |
|
|
57,106 |
|
|
36,035 |
|
| Total Homebuilding revenues |
2,737,391 |
|
|
2,438,903 |
|
|
8,381,090 |
|
|
7,487,350 |
|
|
|
|
|
|
|
|
|
|
| Home sale cost of revenues |
(2,128,931 |
) |
|
(1,821,672 |
) |
|
(6,461,152 |
) |
|
(5,587,974 |
) |
| Land sale cost of revenues |
(18,500 |
) |
|
(14,256 |
) |
|
(134,449 |
) |
|
(32,115 |
) |
| Selling, general, and administrative expenses |
(201,607 |
) |
|
(207,647 |
) |
|
(891,581 |
) |
|
(957,150 |
) |
| Other income (expense), net |
(2,845 |
) |
|
(6,604 |
) |
|
(28,576 |
) |
|
(49,345 |
) |
| Income before income taxes |
$ |
385,508 |
|
|
$ |
388,724 |
|
|
$ |
865,332 |
|
|
$ |
860,766 |
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL SERVICES: |
|
|
|
|
|
|
|
| Income before income taxes |
$ |
23,259 |
|
|
$ |
24,997 |
|
|
$ |
73,496 |
|
|
$ |
73,084 |
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED: |
|
|
|
|
|
|
|
| Income before income taxes |
$ |
408,767 |
|
|
$ |
413,721 |
|
|
$ |
938,828 |
|
|
$ |
933,850 |
|
| PulteGroup, Inc.Segment Data,
continued($000's
omitted)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| |
|
|
|
|
|
|
|
Home sale revenues |
$ |
2,717,031 |
|
|
$ |
2,423,472 |
|
|
$ |
8,323,984 |
|
|
$ |
7,451,315 |
|
|
|
|
|
|
|
|
|
|
|
Closings - units |
|
|
|
|
|
|
|
| Northeast |
489 |
|
|
529 |
|
|
1,335 |
|
|
1,418 |
|
| Southeast |
1,137 |
|
|
1,102 |
|
|
3,888 |
|
|
3,901 |
|
| Florida |
1,222 |
|
|
1,093 |
|
|
3,861 |
|
|
3,441 |
|
| Midwest |
1,120 |
|
|
1,142 |
|
|
3,696 |
|
|
3,418 |
|
| Texas |
1,298 |
|
|
1,080 |
|
|
4,107 |
|
|
3,726 |
|
| West |
1,366 |
|
|
1,251 |
|
|
4,165 |
|
|
4,047 |
|
|
|
6,632 |
|
|
6,197 |
|
|
21,052 |
|
|
19,951 |
|
|
Average selling price |
$ |
410 |
|
|
$ |
391 |
|
|
$ |
395 |
|
|
$ |
373 |
|
|
|
|
|
|
|
|
|
|
|
Net new orders - units |
|
|
|
|
|
|
|
| Northeast |
357 |
|
|
306 |
|
|
1,460 |
|
|
1,361 |
|
| Southeast |
919 |
|
|
804 |
|
|
4,233 |
|
|
3,810 |
|
| Florida |
1,000 |
|
|
705 |
|
|
4,121 |
|
|
3,585 |
|
| Midwest |
757 |
|
|
766 |
|
|
3,876 |
|
|
3,636 |
|
| Texas |
840 |
|
|
784 |
|
|
4,121 |
|
|
3,793 |
|
| West |
932 |
|
|
837 |
|
|
4,815 |
|
|
4,141 |
|
|
|
4,805 |
|
|
4,202 |
|
|
22,626 |
|
|
20,326 |
|
|
Net new orders - dollars |
$ |
2,030,223 |
|
|
$ |
1,666,066 |
|
|
$ |
9,361,534 |
|
|
$ |
7,753,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
|
|
|
2017 |
|
2016 |
|
Unit backlog |
| Northeast |
|
|
|
|
512 |
|
|
387 |
|
| Southeast |
|
|
|
|
1,716 |
|
|
1,371 |
|
| Florida |
|
|
|
|
1,678 |
|
|
1,418 |
|
| Midwest |
|
|
|
|
1,487 |
|
|
1,307 |
|
| Texas |
|
|
|
|
1,426 |
|
|
1,412 |
|
| West |
|
|
|
|
2,177 |
|
|
1,527 |
|
|
|
|
|
|
|
8,996 |
|
|
7,422 |
|
|
Dollars in backlog |
|
|
|
|
$ |
3,979,064 |
|
|
$ |
2,941,512 |
|
|
|
|
|
|
|
|
|
|
| PulteGroup, Inc.Segment Data,
continued($000's
omitted)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| MORTGAGE
ORIGINATIONS: |
| Origination volume |
4,521 |
|
|
4,250 |
|
|
14,152 |
|
|
13,373 |
|
| Origination principal |
$ |
1,348,933 |
|
|
$ |
1,225,568 |
|
|
$ |
4,127,084 |
|
|
$ |
3,706,745 |
|
| Capture rate |
80.6 |
% |
|
81.8 |
% |
|
79.9 |
% |
|
81.2 |
% |
| Supplemental Data($000's
omitted)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
|
| Interest
in inventory, beginning of period |
$ |
222,545 |
|
|
$ |
176,661 |
|
|
$ |
186,097 |
|
|
$ |
149,498 |
|
| Interest capitalized |
45,771 |
|
|
44,961 |
|
|
181,719 |
|
|
160,506 |
|
| Interest expensed |
(41,705 |
) |
|
(35,525 |
) |
|
(141,205 |
) |
|
(123,907 |
) |
| Interest
in inventory, end of period |
$ |
226,611 |
|
|
$ |
186,097 |
|
|
$ |
226,611 |
|
|
$ |
186,097 |
|
PulteGroup,
Inc.Reconciliation of Non-GAAP Financial
Measures(Unaudited)
This report contains information about our operating results
reflecting certain adjustments, including adjustments to cost of
revenues, selling general, and administrative expenses, income
before income taxes, income tax expense, net income, diluted
earnings per share, and operating margin. These measures are
considered non-GAAP financial measures under the SEC's rules and
should be considered in addition to, rather than as a substitute
for, the comparable GAAP financial measures as measures of our
profitability. We believe that reflecting these adjustments
provides investors relevant and useful information for evaluating
the comparability of financial information presented and comparing
our profitability 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 tables set forth a reconciliation of the non-GAAP
financial measures to the GAAP financial measures that management
believes to be most directly comparable ($000's omitted):
| |
Three Months Ended |
|
Three Months Ended |
| |
December 31, 2017 |
|
December 31, 2016 |
| |
As Reported |
|
Adjustments (a) |
|
Adjusted |
|
As Reported |
|
Adjustments (b) |
|
Adjusted |
|
Revenues: |
| Homebuilding |
|
|
|
|
|
|
|
|
|
|
|
| Home sale
revenues |
$ |
2,717,031 |
|
|
$ |
— |
|
|
$ |
2,717,031 |
|
|
$ |
2,423,472 |
|
|
$ |
— |
|
|
$ |
2,423,472 |
|
| Land sale
revenues |
20,360 |
|
|
— |
|
|
20,360 |
|
|
15,431 |
|
|
— |
|
|
15,431 |
|
| |
2,737,391 |
|
|
— |
|
|
2,737,391 |
|
|
2,438,903 |
|
|
— |
|
|
2,438,903 |
|
| Financial Services |
56,166 |
|
|
— |
|
|
56,166 |
|
|
54,175 |
|
|
— |
|
|
54,175 |
|
| Total
revenues |
2,793,557 |
|
|
— |
|
|
2,793,557 |
|
|
2,493,078 |
|
|
— |
|
|
2,493,078 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Homebuilding
Cost of Revenues: |
|
|
|
|
|
|
|
|
|
|
|
| Home sale
cost of revenues |
(2,128,931 |
) |
|
57,466 |
|
|
(2,071,465 |
) |
|
(1,821,672 |
) |
|
1,074 |
|
|
(1,820,598 |
) |
| Land sale
cost of revenues |
(18,500 |
) |
|
— |
|
|
(18,500 |
) |
|
(14,256 |
) |
|
— |
|
|
(14,256 |
) |
| |
(2,147,431 |
) |
|
57,466 |
|
|
(2,089,965 |
) |
|
(1,835,928 |
) |
|
1,074 |
|
|
(1,834,854 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
| Financial
Services expenses |
(33,139 |
) |
|
— |
|
|
(33,139 |
) |
|
(29,370 |
) |
|
— |
|
|
(29,370 |
) |
| Selling,
general, and administrative expenses (SG&A) |
(201,607 |
) |
|
(66,009 |
) |
|
(267,616 |
) |
|
(207,647 |
) |
|
(55,243 |
) |
|
(262,890 |
) |
| Other expense,
net |
(2,613 |
) |
|
— |
|
|
(2,613 |
) |
|
(6,412 |
) |
|
— |
|
|
(6,412 |
) |
| Income before
income taxes |
408,767 |
|
|
(8,543 |
) |
|
400,224 |
|
|
413,721 |
|
|
(54,169 |
) |
|
359,552 |
|
| Income tax
expense |
(331,352 |
) |
|
183,871 |
|
|
(147,481 |
) |
|
(140,549 |
) |
|
3,865 |
|
|
(136,684 |
) |
| Net
income |
$ |
77,415 |
|
|
$ |
175,328 |
|
|
$ |
252,743 |
|
|
$ |
273,172 |
|
|
$ |
(50,304 |
) |
|
$ |
222,868 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Earnings per
share (diluted) |
$ |
0.26 |
|
|
|
|
$ |
0.85 |
|
|
$ |
0.83 |
|
|
|
|
$ |
0.67 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Home sale gross
margin |
21.6 |
% |
|
|
|
23.8 |
% |
|
24.8 |
% |
|
|
|
24.9 |
% |
| SG&A as a
percentage of sales |
7.4 |
% |
|
|
|
9.8 |
% |
|
8.6 |
% |
|
|
|
10.8 |
% |
| Operating
margin |
14.2 |
% |
|
|
|
13.9 |
% |
|
16.3 |
% |
|
|
|
14.0 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Effective tax
rate |
81.1 |
% |
|
|
|
36.8 |
% |
|
34.0 |
% |
|
|
|
38.0 |
% |
(a) Includes land inventory impairments, an
insurance-related benefit, and income tax charges primarily related
to the revaluation of deferred tax assets resulting from the Tax
Cuts and Jobs Act enacted in December 2017(b) Includes
land inventory impairments, an insurance-related benefit, and net
income tax benefits primarily related to energy efficient home
credits and a deferred tax benefit related to a legal entity
restructuring
| |
Twelve Months Ended |
|
Twelve Months Ended |
| |
December 31, 2017 |
|
December 31, 2016 |
| |
As Reported |
|
Adjustments (a) |
|
Adjusted |
|
As Reported |
|
Adjustments (b) |
|
Adjusted |
|
Revenues: |
| Homebuilding |
|
|
|
|
|
|
|
|
|
|
|
| Home sale
revenues |
$ |
8,323,984 |
|
|
$ |
— |
|
|
$ |
8,323,984 |
|
|
$ |
7,451,315 |
|
|
$ |
— |
|
|
$ |
7,451,315 |
|
| Land sale
revenues |
57,106 |
|
|
— |
|
|
57,106 |
|
|
36,035 |
|
|
— |
|
|
36,035 |
|
| |
8,381,090 |
|
|
— |
|
|
8,381,090 |
|
|
7,487,350 |
|
|
— |
|
|
7,487,350 |
|
| Financial Services |
192,160 |
|
|
— |
|
|
192,160 |
|
|
181,126 |
|
|
— |
|
|
181,126 |
|
| Total
revenues |
8,573,250 |
|
|
— |
|
|
8,573,250 |
|
|
7,668,476 |
|
|
— |
|
|
7,668,476 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Homebuilding
Cost of Revenues: |
|
|
|
|
|
|
|
|
|
|
|
| Home sale
cost of revenues |
(6,461,152 |
) |
|
101,058 |
|
|
(6,360,094 |
) |
|
(5,587,974 |
) |
|
1,074 |
|
|
(5,586,900 |
) |
| Land sale
cost of revenues |
(134,449 |
) |
|
81,006 |
|
|
(53,443 |
) |
|
(32,115 |
) |
|
— |
|
|
(32,115 |
) |
| |
(6,595,601 |
) |
|
182,064 |
|
|
(6,413,537 |
) |
|
(5,620,089 |
) |
|
1,074 |
|
|
(5,619,015 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
| Financial
Services expenses |
(119,289 |
) |
|
— |
|
|
(119,289 |
) |
|
(108,573 |
) |
|
— |
|
|
(108,573 |
) |
| Selling,
general, and administrative expenses (SG&A) |
(891,581 |
) |
|
(65,496 |
) |
|
(957,077 |
) |
|
(957,150 |
) |
|
(45,213 |
) |
|
(1,002,363 |
) |
| Other expense,
net |
(27,951 |
) |
|
8,017 |
|
|
(19,934 |
) |
|
(48,814 |
) |
|
26,643 |
|
|
(22,171 |
) |
| Income before
income taxes |
938,828 |
|
|
124,585 |
|
|
1,063,413 |
|
|
933,850 |
|
|
(17,496 |
) |
|
916,354 |
|
| Income tax
expense |
(491,607 |
) |
|
107,661 |
|
|
(383,946 |
) |
|
(331,147 |
) |
|
(17,596 |
) |
|
(348,743 |
) |
| Net
income |
$ |
447,221 |
|
|
$ |
232,246 |
|
|
$ |
679,467 |
|
|
$ |
602,703 |
|
|
$ |
(35,092 |
) |
|
$ |
567,611 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Earnings per
share (diluted) |
$ |
1.44 |
|
|
|
|
$ |
2.19 |
|
|
$ |
1.75 |
|
|
|
|
$ |
1.66 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Home sale gross
margin |
22.4 |
% |
|
|
|
23.6 |
% |
|
25.0 |
% |
|
|
|
25.0 |
% |
| SG&A as a
percentage of sales |
10.7 |
% |
|
|
|
11.5 |
% |
|
12.8 |
% |
|
|
|
13.5 |
% |
| Operating
margin |
11.7 |
% |
|
|
|
12.1 |
% |
|
12.2 |
% |
|
|
|
11.6 |
% |
| Effective tax
rate |
52.4 |
% |
|
|
|
36.1 |
% |
|
35.5 |
% |
|
|
|
38.1 |
% |
(a) Includes land inventory impairments, net
realizable value adjustments on land held for sale, net
insurance-related benefits, an impairment of an investment in an
unconsolidated subsidiary, and income tax charges primarily related
to the revaluation of deferred tax assets resulting from the Tax
Cuts and Jobs Act enacted in December 2017(b) Includes
land inventory impairments, net insurance-related benefits,
restructuring costs associated with a plan to reduce overhead
expenses, costs relating to shareholder activities, a charge
resulting from the settlement of a disputed land transaction, and
net income tax benefits primarily related to energy efficient home
credits and a deferred tax benefit related to a legal entity
restructuring
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