0000822416falsetrue00008224162024-10-222024-10-220000822416us-gaap:CommonStockMember2024-10-222024-10-220000822416phm:SeriesAJuniorParticipatingPreferredSharePurchaseRightsMember2024-10-222024-10-22



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): October 22, 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 October 22, 2024, PulteGroup, Inc. (the "Company") issued a press release announcing its financial results for its third quarter ended September 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:October 22, 2024By:/s/ Todd N. Sheldon
Name:Todd N. Sheldon
Title:Executive Vice President, General Counsel and Corporate Secretary






pultelogo.jpg




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

PULTEGROUP REPORTS THIRD QUARTER 2024 FINANCIAL RESULTS

•Earnings Increased 16% to $3.35 Per Share
•Closings Increased 12% to 7,924
•Home Sale Revenues Increased 12% to $4.3 Billion
•Home Sale Gross Margin of 28.8%
•Net New Orders Totaled 7,031 Homes with a Value of $3.9 Billion
•Unit Backlog of 12,089 Homes with a Value of $7.7 Billion
•Repurchased $320 Million of Common Shares in the Quarter

ATLANTA – Oct. 22, 2024 – PulteGroup, Inc. (NYSE: PHM) announced today financial results for its third quarter ended September 30, 2024. For the quarter, the Company reported net income of $698 million, or $3.35 per share. In the prior year period, the Company reported net income of $639 million, or $2.90 per share.

“Supported by the successful execution of our balanced spec and build-to-order operating model, PulteGroup realized record third quarter home sale revenues of $4.3 billion and earnings of $3.35 per share, as we increased home closings in the period by 12% over last year,” said PulteGroup President and CEO, Ryan Marshall. “Consistent with our stated strategies, in the third quarter we invested $1.4 billion into our business, while returning over $360 million to our shareholders and generating a return on equity of 27%* for the trailing 12 months.

“Years of underbuilding has created a structural shortage of homes and correspondingly high home prices, so the Federal Reserve’s pivot to lowering interest rates provides a powerful tool in helping to address the affordability challenge faced by today’s homebuyers,” said Mr. Marshall. “Given our strong third quarter and nine-month financial results, we are well positioned to deliver a record year of earnings for the Company.”

Third Quarter Results

Home sale revenues in the third quarter increased 12% over the prior year to $4.3 billion. Higher revenues in the third quarter were driven by a 12% increase in closings to 7,924 homes. The average selling price of homes closed in the period was $548,000, effectively unchanged from the prior year.

The Company’s reported home sale gross margin in the third quarter was 28.8%, compared with 29.5% in the prior year period. Homebuilding SG&A expense for the third quarter was $407 million, or 9.4% of home sale revenues, compared with $353 million, or 9.1% in the prior year period.

The Company’s net new orders for the third quarter were 7,031 homes, which is consistent with net new orders of 7,065 homes in the prior year period. The value of net new orders in the quarter was $3.9 billion, or an
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increase of 3% over last year. Average community count for the third quarter was 957, which is up 4% from the prior year.

At the end of the third quarter, the Company’s backlog was 12,089 homes with a value of $7.7 billion.

The Company's financial services operations generated pre-tax income of $55 million, an increase of 90% over prior year pre-tax income of $29 million. The significant increase in pre-tax income reflects the benefit of higher volumes in the Company’s homebuilding operations, as well as a more favorable operating environment. Mortgage capture rate for the third quarter was 87%, up from 84% last year.

Third quarter pre-tax income for the Company increased 7% over the prior year period to $906 million. Income tax expense for the third quarter was $208 million, or an effective tax rate of 23.0%.

PulteGroup repurchased 2.5 million of its common shares in the third quarter for $320 million, or an average price of $126.05 per share. Through the first nine months of 2024, the Company has repurchased 7.6 million common shares, or 3.6% of shares outstanding, for $880 million, or $115.74 per share. The Company ended the quarter with $1.5 billion of cash and a debt-to-capital ratio of 12.3%.

A conference call discussing PulteGroup's third quarter 2024 results is scheduled for Tuesday, October 22, 2024, at 8:30 a.m. Eastern Time. Interested investors can access the live webcast via PulteGroup's corporate website at www.pultegroupinc.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 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
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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 EndedNine Months Ended
September 30,September 30,
2024202320242023
Revenues:
Homebuilding
Home sale revenues$4,343,227 $3,886,908 $12,610,981 $11,433,476 
Land sale and other revenues19,284 39,905 96,327 107,575 
4,362,511 3,926,813 12,707,308 11,541,051 
Financial Services113,831 76,720 317,848 226,875 
Total revenues4,476,342 4,003,533 13,025,156 11,767,926 
Homebuilding Cost of Revenues:
Home sale cost of revenues(3,091,267)(2,739,596)(8,897,835)(8,068,287)
Land sale and other cost of revenues(25,287)(35,007)(101,204)(92,467)
(3,116,554)(2,774,603)(8,999,039)(8,160,754)
Financial Services expenses(58,905)(46,431)(159,615)(137,244)
Selling, general, and administrative expenses(406,897)(353,167)(1,125,637)(1,004,323)
Equity income from unconsolidated entities, net2,508 891 42,577 4,348 
Other income, net9,702 17,091 39,709 32,496 
Income before income taxes906,196 847,314 2,823,151 2,502,449 
Income tax expense(208,282)(208,539)(653,128)(611,070)
Net income$697,914 $638,775 $2,170,023 $1,891,379 
Per share:
Basic earnings$3.38 $2.92 $10.36 $8.49 
Diluted earnings$3.35 $2.90 $10.28 $8.45 
Cash dividends declared$0.20 $0.16 $0.60 $0.48 
Number of shares used in calculation:
Basic206,774 218,288 209,374 221,832 
Effect of dilutive securities1,686 1,394 1,683 1,152 
Diluted208,460 219,682 211,057 222,984 



4


PulteGroup, Inc.
Condensed Consolidated Balance Sheets
($000's omitted)
(Unaudited)
September 30,
2024		December 31,
2023
ASSETS
Cash and equivalents$1,397,664 $1,806,583 
Restricted cash57,472 42,594 
Total cash, cash equivalents, and restricted cash1,455,136 1,849,177 
House and land inventory12,641,932 11,795,370 
Land held for sale24,914 23,831 
Residential mortgage loans available-for-sale556,664 516,064 
Investments in unconsolidated entities213,022 166,913 
Other assets1,897,985 1,545,667 
Goodwill68,930 68,930 
Other intangible assets48,802 56,338 
Deferred tax assets47,708 64,760 
$16,955,093 $16,087,050 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Accounts payable$704,663 $619,012 
Customer deposits597,820 675,091 
Deferred tax liabilities401,142 302,155 
Accrued and other liabilities1,539,476 1,645,690 
Financial Services debt524,093 499,627 
Notes payable1,623,686 1,962,218 
5,390,880 5,703,793 
Shareholders' equity11,564,213 10,383,257 
$16,955,093 $16,087,050 

5

PulteGroup, Inc.
Consolidated Statements of Cash Flows
($000's omitted)
(Unaudited)
Nine Months Ended
September 30,
20242023
Cash flows from operating activities:
Net income$2,170,023 $1,891,379 
Adjustments to reconcile net income to net cash from operating activities:
Deferred income tax expense116,013 132,389 
Land-related charges19,929 16,978 
Depreciation and amortization64,975 59,765 
Equity income from unconsolidated entities(42,577)(4,348)
Distributions of income from unconsolidated entities2,557 4,564 
Share-based compensation expense39,247 38,401 
Other, net(74)(863)
Increase (decrease) in cash due to:
Inventories(805,331)(173,377)
Residential mortgage loans available-for-sale(45,184)262,637 
Other assets(366,279)(142,131)
Accounts payable, accrued and other liabilities(40,115)(177,050)
Net cash provided by operating activities1,113,184 1,908,344 
Cash flows from investing activities:
Capital expenditures(94,065)(67,561)
Investments in unconsolidated entities(15,105)(18,059)
Distributions of capital from unconsolidated entities9,017 2,316 
Other investing activities, net(8,197)(11,727)
Net cash used in investing activities(108,350)(95,031)
Cash flows from financing activities:
Repayments of notes payable(350,453)(86,794)
Financial Services borrowings (repayments), net24,465 (161,254)
Debt issuance costs— (1,500)
Proceeds from liabilities related to consolidated inventory not owned46,256 108,707 
Payments related to consolidated inventory not owned(94,121)(49,379)
Share repurchases(879,999)(700,000)
Cash paid for shares withheld for taxes(18,463)(10,409)
Dividends paid(126,560)(107,676)
Net cash used in financing activities(1,398,875)(1,008,305)
Net increase (decrease) in cash, cash equivalents, and restricted cash(394,041)805,008 
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$1,455,136 $1,899,561 
Supplemental Cash Flow Information:
Interest paid (capitalized), net$20,144 $11,048 
Income taxes paid (refunded), net$546,344 $546,871 
6


PulteGroup, Inc.
Segment Data
($000's omitted)
(Unaudited)
Three Months EndedNine Months Ended
September 30,September 30,
2024202320242023
HOMEBUILDING:
Home sale revenues$4,343,227$3,886,908$12,610,981$11,433,476
Land sale and other revenues19,28439,90596,327107,575
Total Homebuilding revenues 4,362,5113,926,81312,707,30811,541,051
Home sale cost of revenues(3,091,267)(2,739,596)(8,897,835)(8,068,287)
Land sale and other cost of revenues(25,287)(35,007)(101,204)(92,467)
Selling, general, and administrative expenses(406,897)(353,167)(1,125,637)(1,004,323)
Equity income from unconsolidated entities, net2,50889141,5273,293
Other income, net9,70218,43139,70933,836
Income before income taxes$851,270$818,365$2,663,868$2,413,103
FINANCIAL SERVICES:
Income before income taxes$54,926$28,949$159,283$89,346
CONSOLIDATED:
Income before income taxes$906,196$847,314$2,823,151$2,502,449

7

PulteGroup, Inc.
Segment Data, continued
($000's omitted)
(Unaudited)
Three Months EndedNine Months Ended
September 30,September 30,
2024202320242023
Home sale revenues$4,343,227 $3,886,908 $12,610,981 $11,433,476 
Closings - units
Northeast391 344 1,054 996 
Southeast1,340 1,291 4,284 3,864 
Florida1,984 1,983 6,051 5,802 
Midwest1,194 1,018 3,380 2,693 
Texas1,485 1,211 4,285 4,030 
West1,530 1,229 4,062 3,603 
7,924 7,076 23,116 20,988 
Average selling price$548 $549 $546 $545 
Net new orders - units
Northeast385 376 1,226 1,161 
Southeast1,340 1,374 4,130 4,277 
Florida1,681 1,598 5,399 5,386 
Midwest1,233 1,090 3,772 3,426 
Texas1,134 1,258 3,863 4,070 
West1,258 1,369 4,669 4,046 
7,031 7,065 23,059 22,366 
Net new orders - dollars$3,928,860 $3,823,619 $12,986,027 $11,884,620 
Unit backlog
Northeast739 639 
Southeast2,092 2,319 
Florida3,140 4,225 
Midwest2,084 2,083 
Texas1,215 1,829 
West2,819 2,452 
12,089 13,547 
Dollars in backlog$7,694,761 $8,125,182 


8

    
PulteGroup, Inc.
Segment Data, continued
($000's omitted)
(Unaudited)
Three Months EndedNine Months Ended
September 30,September 30,
2024202320242023
MORTGAGE ORIGINATIONS:
Origination volume5,005 4,362 14,442 12,770 
Origination principal$2,103,197 $1,745,952 $5,998,347 $5,053,379 
Capture rate86.7 %83.5 %85.9 %80.5 %


Supplemental Data
($000's omitted)
(Unaudited)
Three Months EndedNine Months Ended
September 30,September 30,
2024202320242023
Interest in inventory, beginning of period$149,362 $141,994 $139,078 $137,262 
Interest capitalized26,443 31,659 86,346 95,388 
Interest expensed(29,708)(33,643)(79,327)(92,640)
Interest in inventory, end of period$146,097 $140,010 $146,097 $140,010 


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
September 30,
2024		December 31,
2023
Notes payable$1,623,686 $1,962,218 
Shareholders' equity11,564,213 10,383,257 
Total capital$13,187,899 $12,345,475 
Debt-to-capital ratio12.3 %15.9 %
Notes payable$1,623,686 $1,962,218 
Less: Total cash, cash equivalents, and
     restricted cash		(1,455,136)(1,849,177)
Total net debt$168,550 $113,041 
Shareholders' equity11,564,213 10,383,257 
Total net capital$11,732,763 $10,496,298 
Net debt-to-capital ratio1.4 %1.1 %

10
v3.24.3
Document and Entity Information Document
Oct. 22, 2024
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Oct. 22, 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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Common Stock [Member]  
Entity Information [Line Items]  
Title of 12(b) Security Common Shares, par value $0.01
Security Exchange Name NYSE
Trading Symbol PHM
Series A Junior Participating Preferred Share Purchase Rights [Member]  
Entity Information [Line Items]  
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Title of 12(b) Security Series A Junior Participating Preferred Share Purchase Rights
Security Exchange Name NYSE
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