PulteGroup Announces $500 Million Increase to Share Repurchase Authorization & a Tender for Up to $300 Million of its 4.250% ...
May 16 2019 - 5:19PM
Business Wire
PulteGroup, Inc. (NYSE: PHM) announced today that its Board of
Directors has approved an increase of $500 million to its share
repurchase authorization. As of May 15, 2019, there was $262
million remaining under the current plan, so the Company’s share
repurchase authorization now totals approximately $762 million.
As detailed in a separate press release, PulteGroup announced
that it will commence a cash tender offer for $300 million of its
4.250% senior notes due 2021.
“Driven by the ongoing strength of our homebuilding operations,
we ended the first quarter of 2019 in an outstanding financial
position with $1.1 billion of cash and $1.8 billion of total
available liquidity,” said Ryan Marshall, PulteGroup president and
CEO. “Our resulting balance sheet strength affords us the
flexibility to capitalize on market opportunities and execute on
our capital allocation objectives.
“Reflecting our constructive view of the housing market, we
expect to invest approximately $2.9 billion, inclusive of our
recently closed transaction with American West, in land acquisition
and development in 2019, which is an increase of approximately 10%
over 2018. Strategically investing in our business, repurchasing
shares and paying down debt are all consistent with our stated
capital-allocation priorities and with our goal of delivering high
returns over the housing cycle.”
This press release is not an offer to sell or to purchase or a
solicitation to purchase or accept any securities.
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 any
impairment charge 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 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, 2018, 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 more
than 40 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.pultegroup.com; www.pulte.com; www.centex.com;
www.delwebb.com; www.divosta.com and www.jwhomes.com.
Follow PulteGroup, Inc. on Twitter: @PulteGroupNews
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version on businesswire.com: https://www.businesswire.com/news/home/20190516006103/en/
Investors: Jim Zeumer(404) 978-6434Email:
jim.zeumer@pultegroup.com
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