0000822416falsetrue00008224162024-07-232024-07-230000822416us-gaap:CommonStockMember2024-07-232024-07-230000822416phm:SeriesAJuniorParticipatingPreferredSharePurchaseRightsMember2024-07-232024-07-23



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 23, 2024
PulteGroupLogo2022 (2).jpg

PULTEGROUP, INC.
(Exact name of registrant as specified in its Charter)

Michigan1-980438-2766606
(State or other jurisdiction(Commission(IRS Employer
of incorporation)File Number)Identification No.)
3350 Peachtree Road NE, Suite 1500
Atlanta,Georgia30326
(Address of principal executive offices) (Zip Code)


Registrant's telephone number, including area code 404 978-6400

____________________________________________________
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Shares, par value $0.01 PHM New York Stock Exchange
Series A Junior Participating Preferred Share Purchase Rights
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company.  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐



ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 23, 2024, PulteGroup, Inc. (the "Company") issued a press release announcing its financial results for its second quarter ended June 30, 2024. A copy of this earnings press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated in Item 2.02 by reference.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

104    Cover Page Interactive Data File (embedded within the Inline XBRL document)

The information in Item 2.02 of this Current Report on Form 8-K, including the earnings press release incorporated in such Item 2.02, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be incorporated by reference in any filing under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

                                
PULTEGROUP, INC.
Date:July 23, 2024By:/s/ Todd N. Sheldon
Name:Todd N. Sheldon
Title:Executive Vice President, General Counsel and Corporate Secretary






pultelogoa.jpg




FOR IMMEDIATE RELEASECompany Contact
Investors: Jim Zeumer
(404) 978-6434
    Email: jim.zeumer@pultegroup.com

PULTEGROUP REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS

Earnings Increased 19% to $3.83 Per Share
Home Sale Revenues Increased 10% to $4.4 Billion
Closings Increased 8% to 8,097 Homes; Average Sales Price Increased 2% to $549,000
Home Sale Gross Margin Increased 30 Basis Points to 29.9%
Net New Orders Totaled 7,649 Homes with a Value of $4.4 Billion
Unit Backlog of 12,982 Homes with a Value of $8.1 Billion
Repurchased $314 Million of Common Shares and $300 Million of Senior Notes in the Quarter


ATLANTA - July 23, 2024 – PulteGroup, Inc. (NYSE: PHM) announced today financial results for its second quarter ended June 30, 2024. For the quarter, the Company reported net income of $809 million, or $3.83
per share. Reported net income for the quarter includes a $52 million pre-tax, or $0.19 per share, insurance benefit recorded in the period, and a $13 million, or $0.06 per share, benefit related to the favorable resolution of certain state tax matters. Prior year reported net income of $720 million, or $3.21 per share, included a $65 million pre-tax, or $0.21 per share, insurance benefit recorded in the period.

“PulteGroup’s balanced operating model continues to deliver outstanding financial results as increases in closings, average sales price and gross margin were key drivers of the 19% increase in our earnings to $3.83 per share,” said Ryan Marshall, President and Chief Executive Officer of PulteGroup. “The resulting strong cash flows are providing us with tremendous flexibility as we continued to intelligently allocate capital in the quarter to invest in our business growth, while returning funds to shareholders and further strengthening our overall capital structure.

“While interest rate movements can impact short-term homebuying demand, long-term market dynamics continue to benefit from a structural shortage of homes caused by years of underbuilding,” added Mr. Marshall. “As demonstrated by our 27.1% return on equity* for the past 12 months, we continue to successfully navigate these conditions by actively managing sales price, pace and starts on a community-by-community basis with the goal of realizing high returns on invested capital and equity over time.”

Home sale revenues for the second quarter increased 10% over the prior year to $4.4 billion. Higher revenues in the quarter were driven by an 8% increase in closings to 8,097 homes, combined with a 2% increase in average sales price to $549,000.


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The Company reported second quarter homebuilding gross margins of 29.9%, which is an increase of 30 basis points over both last year and the first quarter of 2024. The Company’s reported second quarter SG&A expense of $361 million, or 8.1% of home sale revenues, includes the $52 million pre-tax insurance benefit recorded in the quarter. Prior year reported SG&A expense of $315 million, or 7.8% of home sale revenues, includes a $65 million pre-tax insurance benefit recorded in the second quarter of 2023.

In the second quarter, the Company reported net new orders of 7,649, compared with 7,947 homes in the comparable prior year period. The dollar value of net new orders in the second quarter increased 2% over the prior year to $4.4 billion. The Company operated out of an average of 934 communities in the period, which is an increase of 3% over the second quarter of 2023.

At the end of the second quarter, the Company’s backlog was 12,982 homes with a value of $8.1 billion.

The Company's financial services operations reported second quarter pre-tax income of $63 million, compared with prior year pre-tax income of $46 million. The 36% increase in pre-tax income was driven by gains across all business lines within financial services: mortgage, title and insurance. Mortgage capture rate for the second quarter was 86%, up from 80% last year.

The Company’s reported income tax expense for the second quarter was $239 million, representing an effective tax rate of 22.8%. The Company’s effective tax rate is inclusive of the $13 million benefit related to the favorable resolution of certain state tax matters realized in the quarter.

In the second quarter, the Company repurchased 2.8 million of its outstanding common shares for $314 million, or an average price of $113.79 per share. The Company also completed a tender offer in the period for $300 million of its outstanding senior notes, lowering its quarter-end outstanding notes payable to $1.7 billion. Inclusive of these transactions, the Company ended the second quarter with $1.4 billion of cash and a debt-to-capital ratio of 12.8%.

A conference call discussing PulteGroup's second quarter 2024 results is scheduled for Tuesday, July 23, 2024, at 8:30 a.m. Eastern Time. Interested investors can access the live webcast via PulteGroup's corporate website at www.pultegroup.com.

* The Company's return on equity is calculated as net income for the trailing twelve months divided by average shareholders' equity, where average shareholders' equity is the sum of ending shareholders' equity balances of the trailing five quarters divided by five.

Forward-Looking Statements

This 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 potential impairment charges 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; the impact of any changes to our strategy in responding to the cyclical nature of the industry or deteriorations in industry changes or downward changes in general economic or other business conditions, including any changes regarding our land positions and the levels of our land spend; economic changes nationally or in our
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local markets, including inflation, deflation, changes in consumer confidence and preferences and the state of the market for homes in general; labor supply shortages and the cost of labor; the availability and cost of land and other raw materials used by us in our homebuilding operations; a decline in the value of the land and home inventories we maintain and resulting possible future writedowns of the carrying value of our real estate assets; competition within the industries in which we operate; governmental regulation directed at or affecting the housing market, the homebuilding industry or construction activities, slow growth initiatives and/or local building moratoria; the availability and cost of insurance covering risks associated with our businesses, including warranty and other legal or regulatory proceedings or claims; damage from improper acts of persons over whom we do not have control or attempts to impose liabilities or obligations of third parties on us; weather related slowdowns; the impact of climate change and related governmental regulation; adverse capital and credit market conditions, which may affect our access to and cost of capital; the insufficiency of our income tax provisions and tax reserves, including as a result of changing laws or interpretations; the potential that we do not realize our deferred tax assets; our inability to sell mortgages into the secondary market; uncertainty in the mortgage lending industry, including revisions to underwriting standards and repurchase requirements associated with the sale of mortgage loans, and related claims against us; risks related to information technology failures, data security issues, and the effect of cybersecurity incidents and threats; the impact of negative publicity on sales; failure to retain key personnel; the impairment of our intangible assets; the disruptions associated with the COVID-19 pandemic (or another epidemic or pandemic or similar public threat or fear of such an event), and the measures taken to address it; and other factors of national, regional and global scale, including those of a political, economic, business and competitive nature. See Item 1A – Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 for a further discussion of these and other risks and uncertainties applicable to our businesses. We undertake no duty to update any forward-looking statement, whether as a result of new information, future events or changes in our expectations.

About PulteGroup

PulteGroup, Inc. (NYSE: PHM), based in Atlanta, Georgia, is one of America’s largest homebuilding companies with operations in more than 45 markets throughout the country. Through its brand portfolio that includes Centex, Pulte Homes, Del Webb, DiVosta Homes, American West 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’s purpose is building incredible places where people can live their dreams.

For more information about PulteGroup, Inc. and PulteGroup brands, go to pultegroup.com; pulte.com; centex.com; delwebb.com; divosta.com; jwhomes.com; and americanwesthomes.com. Follow PulteGroup, Inc. on X: @PulteGroupNews.


# # #
3



PulteGroup, Inc.
Consolidated Statements of Operations
($000's omitted, except per share data)
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
2024202320242023
Revenues:
Homebuilding
Home sale revenues$4,448,168 $4,058,930 $8,267,754 $7,546,567 
Land sale and other revenues39,825 37,604 77,042 67,671 
4,487,993 4,096,534 8,344,796 7,614,238 
Financial Services111,662 92,219 204,019 150,156 
Total revenues4,599,655 4,188,753 8,548,815 7,764,394 
Homebuilding Cost of Revenues:
Home sale cost of revenues(3,117,482)(2,856,361)(5,806,569)(5,328,690)
Land sale and other cost of revenues(38,873)(32,494)(75,917)(57,461)
(3,156,355)(2,888,855)(5,882,486)(5,386,151)
Financial Services expenses(49,334)(46,778)(100,712)(90,813)
Selling, general, and administrative expenses(361,145)(314,637)(718,739)(651,156)
Equity income from unconsolidated entities, net2,167 944 40,069 3,456 
Other income, net13,324 13,586 30,008 15,405 
Income before income taxes1,048,312 953,013 1,916,955 1,655,135 
Income tax expense(239,179)(232,668)(444,846)(402,531)
Net income$809,133 $720,345 $1,472,109 $1,252,604 
Per share:
Basic earnings$3.86 $3.23 $6.99 $5.58 
Diluted earnings$3.83 $3.21 $6.93 $5.55 
Cash dividends declared$0.20 $0.16 $0.40 $0.32 
Number of shares used in calculation:
Basic209,547 222,160 210,692 223,635 
Effect of dilutive securities1,654 1,232 1,682 1,031 
Diluted211,201 223,392 212,374 224,666 



4



PulteGroup, Inc.
Condensed Consolidated Balance Sheets
($000's omitted)
(Unaudited)
June 30,
2024
December 31,
2023
ASSETS
Cash and equivalents$1,392,902 $1,806,583 
Restricted cash53,064 42,594 
Total cash, cash equivalents, and restricted cash1,445,966 1,849,177 
House and land inventory12,302,301 11,795,370 
Land held for sale21,559 23,831 
Residential mortgage loans available-for-sale569,387 516,064 
Investments in unconsolidated entities210,246 166,913 
Other assets1,820,092 1,545,667 
Goodwill68,930 68,930 
Other intangible assets51,300 56,338 
Deferred tax assets54,288 64,760 
$16,544,069 $16,087,050 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Accounts payable$651,580 $619,012 
Customer deposits654,427 675,091 
Deferred tax liabilities381,021 302,155 
Accrued and other liabilities1,459,998 1,645,690 
Financial Services debt524,042 499,627 
Notes payable1,650,178 1,962,218 
5,321,246 5,703,793 
Shareholders' equity11,222,823 10,383,257 
$16,544,069 $16,087,050 

5


PulteGroup, Inc.
Consolidated Statements of Cash Flows
($000's omitted)
(Unaudited)
Six Months Ended
June 30,
20242023
Cash flows from operating activities:
Net income$1,472,109 $1,252,604 
Adjustments to reconcile net income to net cash from operating activities:
Deferred income tax expense89,321 93,389 
Land-related charges7,798 10,110 
Depreciation and amortization42,891 39,204 
Equity income from unconsolidated entities(40,069)(3,456)
Distributions of income from unconsolidated entities2,358 4,564 
Share-based compensation expense29,084 27,960 
Other, net120 (161)
Increase (decrease) in cash due to:
Inventories(473,665)52,001 
Residential mortgage loans available-for-sale(55,346)244,516 
Other assets(294,335)(6,602)
Accounts payable, accrued and other liabilities(123,002)(263,546)
Net cash provided by operating activities657,264 1,450,583 
Cash flows from investing activities:
Capital expenditures(55,317)(45,076)
Investments in unconsolidated entities(9,096)(7,858)
Distributions of capital from unconsolidated entities3,474 2,216 
Other investing activities, net(5,262)(3,278)
Net cash used in investing activities(66,201)(53,996)
Cash flows from financing activities:
Repayments of notes payable(318,288)(17,305)
Financial Services borrowings (repayments), net24,416 (271,128)
Proceeds from liabilities related to consolidated inventory not owned32,721 91,354 
Payments related to consolidated inventory not owned(70,608)(33,577)
Share repurchases(559,999)(400,000)
Cash paid for shares withheld for taxes(17,623)(10,389)
Dividends paid(84,893)(72,315)
Net cash used in financing activities(994,274)(713,360)
Net increase (decrease) in cash, cash equivalents, and restricted cash(403,211)683,227 
Cash, cash equivalents, and restricted cash at beginning of period1,849,177 1,094,553 
Cash, cash equivalents, and restricted cash at end of period$1,445,966 $1,777,780 
Supplemental Cash Flow Information:
Interest paid (capitalized), net$13,215 $2,757 
Income taxes paid (refunded), net$365,061 $380,527 
6



PulteGroup, Inc.
Segment Data
($000's omitted)
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
2024202320242023
HOMEBUILDING:
Home sale revenues$4,448,168 $4,058,930 $8,267,754 $7,546,567 
Land sale and other revenues39,825 37,604 77,042 67,671 
Total Homebuilding revenues 4,487,993 4,096,534 8,344,796 7,614,238 
Home sale cost of revenues(3,117,482)(2,856,361)(5,806,569)(5,328,690)
Land sale and other cost of revenues(38,873)(32,494)(75,917)(57,461)
Selling, general, and administrative expenses(361,145)(314,637)(718,739)(651,156)
Equity income (loss) from unconsolidated entities, net1,117 (110)39,019 2,402 
Other income, net13,324 13,586 30,008 15,405 
Income before income taxes$984,934 $906,518 $1,812,598 $1,594,738 
FINANCIAL SERVICES:
Income before income taxes$63,378 $46,495 $104,357 $60,397 
CONSOLIDATED:
Income before income taxes$1,048,312 $953,013 $1,916,955 $1,655,135 

7


PulteGroup, Inc.
Segment Data, continued
($000's omitted)
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
2024202320242023
Home sale revenues$4,448,168 $4,058,930 $8,267,754 $7,546,567 
Closings - units
Northeast378 315 663 652 
Southeast1,499 1,405 2,944 2,573 
Florida2,150 2,067 4,067 3,819 
Midwest1,196 918 2,186 1,675 
Texas1,472 1,511 2,800 2,819 
West1,402 1,302 2,532 2,374 
8,097 7,518 15,192 13,912 
Average selling price$549 $540 $544 $542 
Net new orders - units
Northeast400 400 841 785 
Southeast1,396 1,556 2,790 2,903 
Florida1,746 1,910 3,718 3,788 
Midwest1,265 1,253 2,539 2,336 
Texas1,275 1,388 2,729 2,812 
West1,567 1,440 3,411 2,677 
7,649 7,947 16,028 15,301 
Net new orders - dollars$4,358,508 $4,271,008 $9,057,167 $8,061,001 
Unit backlog
Northeast745 607 
Southeast2,092 2,236 
Florida3,443 4,610 
Midwest2,045 2,011 
Texas1,566 1,782 
West3,091 2,312 
12,982 13,558 
Dollars in backlog$8,109,128 $8,188,502 


8


    
PulteGroup, Inc.
Segment Data, continued
($000's omitted)
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
2024202320242023
MORTGAGE ORIGINATIONS:
Origination volume5,105 4,539 9,437 8,408 
Origination principal$2,140,103 $1,790,977 $3,895,150 $3,307,427 
Capture rate86.5 %79.7 %85.4 %79.1 %


Supplemental Data
($000's omitted)
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
2024202320242023
Interest in inventory, beginning of period$148,101 $141,271 $139,078 $137,262 
Interest capitalized29,284 31,927 59,903 63,729 
Interest expensed(28,023)(31,204)(49,619)(58,997)
Interest in inventory, end of period$149,362 $141,994 $149,362 $141,994 


9


PulteGroup, Inc.
Reconciliation of Non-GAAP Financial Measures

This report contains information about our debt-to-capital ratios. These measures could be considered non-GAAP financial measures under the SEC's rules and should be considered in addition to, rather than as a substitute for, comparable GAAP financial measures. We calculate total net debt by subtracting total cash, cash equivalents, and restricted cash from notes payable to present the amount of assets needed to satisfy the debt. We use the debt-to-capital and net debt-to-capital ratios as indicators of our overall leverage and believe they are useful financial measures in understanding the leverage employed in our operations. We believe that these measures provide investors relevant and useful information for evaluating the comparability of financial information presented and comparing our profitability and liquidity 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 table sets forth a reconciliation of the debt-to-capital ratios ($000's omitted):
Debt-to-Capital Ratios
June 30,
2024
December 31,
2023
Notes payable$1,650,178 $1,962,218 
Shareholders' equity11,222,823 10,383,257 
Total capital$12,873,001 $12,345,475 
Debt-to-capital ratio12.8 %15.9 %
Notes payable$1,650,178 $1,962,218 
Less: Total cash, cash equivalents, and
     restricted cash
(1,445,966)(1,849,177)
Total net debt$204,212 $113,041 
Shareholders' equity11,222,823 10,383,257 
Total net capital$11,427,035 $10,496,298 
Net debt-to-capital ratio1.8 %1.1 %

10
v3.24.2
Document and Entity Information Document
Jul. 23, 2024
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Jul. 23, 2024
Entity Registrant Name PULTEGROUP, INC.
Entity Central Index Key 0000822416
Amendment Flag false
Entity Incorporation, State or Country Code MI
Entity File Number 1-9804
Entity Tax Identification Number 38-2766606
Entity Address, Address Line One 3350 Peachtree Road NE, Suite 1500
Entity Address, City or Town Atlanta,
Entity Address, State or Province GA
Entity Address, Postal Zip Code 30326
City Area Code 404
Local Phone Number 978-6400
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Entity Information [Line Items]  
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Security Exchange Name NYSE
Trading Symbol PHM
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