PulteGroup Reports Financial Results For 2012 Fourth Quarter

         PulteGroup Reports Financial Results For 2012 Fourth Quarter

- Q4 Earnings of $0.15 Per Share After Net Charges of $0.19 Per Share
Resulting from Mortgage and Debt-Repurchase Charges, Partially Offset by Tax
Benefits

- Adjusted Q4 Home Sale Gross Margin of 21.8% Increased 320 Basis Points Over
Prior Year and 20 Basis Points Over Prior Quarter

- SG&A Reduced 40 Basis Points from Prior Year to 9.6% of Home Sale Revenues

- Net New Orders Increased 27% to 3,926 Generated from 4% Fewer Communities

- Dollar Value of Net New Orders Increased 41% to $1.2 Billion

- Backlog Value Increased 82% to $1.9 Billion; Unit Backlog Up 65% to 6,458
Homes

- Repurchased $496 Million of Senior Notes in Q4; Retired $592 Million of Debt
in 2012

- Cash Balance of $1.5 Billion Up $292 Million from Prior Year End

PR Newswire

BLOOMFIELD HILLS, Mich., Jan. 31, 2013

BLOOMFIELD HILLS, Mich., Jan. 31, 2013 /PRNewswire/ -- PulteGroup, Inc. (NYSE:
PHM) announced today financial results for its fourth quarter ended December
31, 2012. For the quarter, PulteGroup reported net income of $59 million, or
$0.15 per share. Reported net income includes charges of $49 million, or
$0.13 per share, for potential future loan repurchase obligations, and $32
million, or $0.08 per share, relating to the repurchase of $496 million of
senior notes in the period. These charges were partially offset by $8
million, or $0.02 per share, of income tax benefits associated with the
favorable resolution of certain tax matters.

In the prior year fourth quarter, PulteGroup reported net income of $14
million, or $0.04 per share, inclusive of net charges totaling $27 million, or
$0.07 per share, related to potential future loan repurchase obligations,
land-related charges, and debt repurchases, partially offset by land-sale
gains and income tax benefits.

"We are pleased to report another quarter of strong financial results that
demonstrate improved fundamental operatingperformance and higher returns on
invested capital," said Richard J. Dugas, Jr., Chairman, President and CEO of
PulteGroup. "Improving market conditions, combined with the value creation
initiatives we have implemented over the last two years, helped to drive a 320
basis point increase in our adjusted gross margin to 21.8%. In addition, our
continued focus on cost controls enabled us to realize a 40 basis point
decrease in our SG&A as a percentage of home sales to 9.6%."

"Fourth quarter results also demonstrated continued strong cash flow
generation consistent with our focus on greater capital efficiency. For the
full year, we were able to increase our cash position by $292 million after
paying down almost $600 million of senior notes."

"We now look ahead to 2013 with expectations for a continued rebound in U.S.
housing driven by record low interest rates, higher rent vs. own costs,rising
home prices and sharply lower overall housing inventory. Given this
expectation, and consistent with our focus on improving long-term returns, we
have authorized an additional $250 million per year of investment in land and
related development in 2013 and 2014. This incremental investment, which will
raise planned land spend for each year to approximately $1.2 billion, will be
made using the same disciplined capital investment process we established 18
months ago. The incremental investment is expected to provide additional land
resources for use primarily in 2014 and beyond."

Fourth Quarter Results

Home sale revenues in the fourth quarter ended December 31, 2012, totaled $1.5
billion, an increase of 27% over the prior year's fourth quarter. The
increase in revenue was driven by a 20% increase in closings to 5,154 homes,
combined with a 6% increase in average selling price to $287,000. The higher
average selling price reported for the quarter reflects price increases, as
well as a continuedshift in product mix to include more move-up homes being
closed in the period.

The Company's adjusted home sale gross margin for the fourth quarter was
21.8%, an increase of 320 basis points over the prior year and 20 basis points
compared with the third quarter of 2012. Homebuilding SG&A expense for the
quarter was $142 million, or 9.6% of home sale revenues. SG&A for the prior
year period was $117 million, or 10.0% of home sale revenues.

For the quarter, the Company reported 3,926 net new orders, an increase of 27%
over prior year orders of 3,084. The dollar value of net new orders in the
quarter was $1.2 billion, an increase of 41% over the prior year order value
of $828 million. The Company operated out of 4% fewer communities in the
fourth quarter of 2012 compared with the comparable prior year period.
Contract backlog at year end was valued at $1.9 billion and totaled 6,458
homes, which represent increases of 82% and 65%, respectively, over the prior
year.

The Company's financial services operations reported a pretax loss of $24
million in the quarter, inclusive of a $49 million charge associated with
potential future loan repurchase obligations. The increase in estimated
repurchase obligations primarily reflects the Company's expectation that
repurchase requests will now continue through 2014, or a year longer than
previously estimated, coupled with a higher volume of repurchase requests
experienced in 2012.

During the quarter, the Company used available cash to repurchase $496 million
principal value of its senior notes, resulting in a pretax charge of $32
million. Combined with transactions completed earlier in the year, the
Company retired an aggregate $592 million principal value of its senior notes
during 2012 which helped to lower the Company's year-end debt and net
debt-to-total capitalization to 53% and 32%, respectively.

A conference call discussing PulteGroup's fourth quarter results will be held
Thursday, January 31, 2013, at 8:30 a.m. Eastern Time, and webcast live via
pultegroupinc.com. Interested investors can access the call via the Company's
home page at pultegroupinc.com, and are encouraged to download the available
slides that provide additional details on the Company's fourth quarter
results.

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," "project," "may,"
"can," "could," "might," "will" and similar expressions identify
forward-looking statements, including statements related to 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; continued
volatility in the debt and equity markets; competition within the industries
in which PulteGroup operates; the availability and cost of land and other raw
materials used by PulteGroup in its homebuilding operations; the impact of any
changes to our strategy in responding to continuing adverse conditions in the
industry, including any changes regarding our land positions; the availability
and cost of insurance covering risks associated with PulteGroup's 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; economic changes nationally or in PulteGroup's 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; 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, 2011, 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 Bloomfield Hills, Mich., is one of
America's largest homebuilding companies with operations in approximately60
markets throughout the country. Through its brand portfolio that includes
Centex, Pulte Homes and Del Webb, 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 new homes designed for the
way people actually live today. As the most awarded homebuilder in customer
satisfaction, PulteGroup brands have consistently ranked among top
homebuilders in third-party customer satisfaction studies.

For more information about PulteGroup, Inc. and PulteGroup brands, go to
pultegroupinc.com; www.pulte.com; www.centex.com; and www.delwebb.com.

PulteGroup, Inc.

Consolidated Results of Operations

($000's omitted, except per share data)

(Unaudited)
                        Three Months Ended          Year Ended
                        December 31,                December 31,
                        2012          2011          2012          2011
Revenues:
Homebuilding
Home sale revenues      $ 1,481,517   $ 1,167,141   $ 4,552,412   $ 3,950,743
Land sale revenues      36,928        63,830        106,698       82,853
                        1,518,445     1,230,971     4,659,110     4,033,596
Financial Services      48,521        31,374        160,888       103,094
Total revenues          1,566,966     1,262,345     4,819,998     4,136,690
Homebuilding Cost of
Revenues:
Home sale cost of       1,228,201     1,021,873     3,833,451     3,444,398
revenues
Land sale cost of       32,811        57,497        94,880        59,279
revenues
                        1,261,012     1,079,370     3,928,331     3,503,677
Financial Services      72,597        58,836        135,511       137,666
expenses
Selling, general, and   141,766       117,204       514,457       519,583
administrative expenses
Other expense (income), 41,728        18,337        66,298        293,102
net
Interest income         (1,331)       (1,351)       (4,913)       (5,055)
Interest expense        204           323           819           1,313
Equity in (earnings)
loss of unconsolidated  (223)         (1,299)       (4,059)       (3,296)
entities
Income (loss) before    51,213        (9,075)       183,554       (310,300)
income taxes
Income tax expense      (7,529)       (22,896)      (22,591)      (99,912)
(benefit)
Net income (loss)       $ 58,742      $ 13,821      $ 206,145     $ (210,388)
Net income (loss) per
share:
Basic                   $ 0.15        $ 0.04        $ 0.54        $ (0.55)
Diluted                 $ 0.15        $ 0.04        $ 0.54        $ (0.55)
Number of shares used
in calculation:
Basic                   383,404       380,149       381,562       379,877
Effect of dilutive      5,900         1,112         3,002         —
securities
Diluted                 389,304       381,261       384,564       379,877

PulteGroup, Inc.

Condensed Consolidated Balance Sheets

($000's omitted)

(Unaudited)
                                              December 31,  December 31,
                                              2012          2011
ASSETS
Cash and equivalents                          $ 1,404,760   $ 1,083,071
Restricted cash                               71,950        101,860
House and land inventory                      4,214,046     4,636,468
Land held for sale                            91,104        135,307
Land, not owned, under option agreements      31,066        24,905
Residential mortgage loans available-for-sale 318,931       258,075
Investments in unconsolidated entities        45,629        35,988
Other assets                                  407,675       447,598
Intangible assets                             149,248       162,348
                                              $ 6,734,409   $ 6,885,620
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable                              $ 178,274     $ 196,447
Customer deposits                             101,183       46,960
Accrued and other liabilities                 1,418,063     1,411,941
Income tax liabilities                        198,865       203,313
Financial Services debt                       138,795       —
Senior notes                                  2,509,613     3,088,344
Total liabilities                             4,544,793     4,947,005
Shareholders' equity                          2,189,616     1,938,615
                                              $ 6,734,409   $ 6,885,620



PulteGroup, Inc.

Consolidating Statements of Cash Flows

($000's omitted)

(Unaudited)
                                                    Year Ended
                                                    December 31,
                                                    2012          2011
Cash flows from operating activities:
Net income (loss)                                   $ 206,145     $ (210,388)
Adjustments to reconcile net income (loss) to net
cash flows provided by (used in)

operating activities:
Write-down of land and deposits and pre-acquisition 17,195        35,786
costs
Goodwill impairments                                —             240,541
Amortization and depreciation                       30,027        32,098
Stock-based compensation expense                    22,897        16,970
Loss on debt repurchases                            32,071        5,638
Equity in (earnings) loss of unconsolidated         (4,059)       (3,296)
entities
Distributions of earnings from unconsolidated       7,488         7,083
entities
Other non-cash, net                                 10,356        12,188
Increase (decrease) in cash due to:
Restricted cash                                     1,257         5,940
Inventories                                         455,223       54,891
Residential mortgage loans available-for-sale       (60,828)      (82,113)
Other assets                                        26,014        182,471
Accounts payable, accrued and other liabilities     20,802        (189,435)
Income tax liabilities                              (4,448)       (91,095)
Net cash provided by (used in) operating activities 760,140       17,279
Cash flows from investing activities:
Distributions from unconsolidated entities          3,029         4,531
Investments in unconsolidated entities              (16,456)      (4,603)
Net change in loans held for investment             836           325
Change in restricted cash related to letters of     28,653        (83,199)
credit
Proceeds from the sale of property and equipment    7,586         10,555
Capital expenditures                                (13,942)      (21,238)
Net cash provided by (used in) investing activities 9,706         (93,629)
Cash flows from financing activities:
Financial Services borrowings (repayments)          138,795       —
Other borrowings (repayments)                       (618,800)     (321,133)
Stock option exercises                              32,809        —
Stock repurchases                                   (961)         (2,836)
Net cash provided by (used in) financing activities (448,157)     (323,969)
Net increase (decrease) in cash and equivalents     321,689       (400,319)
Cash and equivalents at beginning of period         1,083,071     1,483,390
Cash and equivalents at end of period               $ 1,404,760   $ 1,083,071
Supplemental Cash Flow Information:
Interest paid (capitalized), net                    $ (1,470)     $ (9,623)
Income taxes paid (refunded), net                   $ (13,322)    $ (62,167)

PulteGroup, Inc.

Segment Data

($000's omitted)

(Unaudited)
                        Three Months Ended          Year Ended
                        December 31,                December 31,
                        2012          2011          2012          2011
HOMEBUILDING:
Home sale revenues      $ 1,481,517   $ 1,167,141   $ 4,552,412   $ 3,950,743
Land sale revenues      36,928        63,830        106,698       82,853
Total Homebuilding      1,518,445     1,230,971     4,659,110     4,033,596
revenues
Home sale cost of       1,228,201     1,021,873     3,833,451     3,444,398
revenues
Land sale cost of       32,811        57,497        94,880        59,279
revenues
Selling, general, and   141,766       117,204       514,457       519,583
administrative expenses
Equity in (earnings)
loss of unconsolidated  (159)         (1,263)       (3,873)       (3,194)
entities
Other expense (income), 41,728        18,337        66,298        293,102
net
Interest income, net    (1,127)       (1,028)       (4,094)       (3,742)
Income (loss) before    $ 75,225      $ 18,351      $ 157,991     $ (275,830)
income taxes
FINANCIAL SERVICES:
Income (loss) before    $ (24,012)    $ (27,426)    $ 25,563      $ (34,470)
income taxes
CONSOLIDATED:
Income (loss) before    $ 51,213      $ (9,075)     $ 183,554     $ (310,300)
income taxes

PulteGroup, Inc.

Segment data, continued

($000's omitted)

(Unaudited)
             Three Months Ended                  Year Ended
             December 31,                        December 31,
             2012              2011              2012             2011
Home sale    $  1,481,517      $  1,167,141      $  4,552,412     $ 3,950,743
revenues
Closings -
units
Northeast    576               649               1,800            1,880
Southeast    773               739               2,757            2,771
Florida      707               596               2,340            2,251
Texas        1,003             822               3,487            3,327
North        1,046             742               3,103            2,579
Southwest    1,049             755               3,018            2,467
             5,154             4,303             16,505           15,275
Average
selling      $  287            $  271            $  276           $ 259
price
Net new
orders -
units
Northeast    398               371               1,997            1,749
Southeast    682               534               3,066            2,642
Florida      600               470               2,747            2,314
Texas        905               597               4,117            3,278
North        789               586               3,661            2,635
Southwest    552               526               3,451            2,597
             3,926             3,084             19,039           15,215
Net new
orders -     $  1,166,760      $  828,154        $  5,424,300     $ 3,953,829
dollars (a)
                                                 December 31,
                                                 2012             2011
Unit backlog
Northeast                                        622              425
Southeast                                        911              602
Florida                                          1,065            658
Texas                                            1,455            825
North                                            1,267            709
Southwest                                        1,138            705
                                                 6,458            3,924
Dollars in                                       $  1,931,538     $ 1,059,649
backlog
(a) Net new order dollars represent a composite of new order dollars combined
with other movements of the dollars in backlog related to cancellations and
change orders.

PulteGroup, Inc.

Segment Data, continued

($000's omitted)

(Unaudited)
                        Three Months Ended        Year Ended
                        December 31,              December 31,
                        2012         2011         2012           2011
MORTGAGE ORIGINATIONS:
Origination volume      3,625        2,815        11,322         9,482
Origination principal   $ 828,607    $ 622,473    $ 2,509,928    $ 1,986,225
Capture rate            83.0      %  81.8      %  81.9        %  78.5        %
Supplemental Data

($000's omitted)

(Unaudited)
                        Three Months Ended        Year Ended
                        December 31,              December 31,
                        2012         2011         2012           2011
Interest in inventory,  $ 352,026    $ 365,343    $ 355,068      $ 323,379
beginning of period
Interest capitalized    47,734       53,704       201,103        221,071
Interest expensed       (67,880)     (63,979)     (224,291)      (189,382)
Interest in inventory,  $ 331,880    $ 355,068    $ 331,880      $ 355,068
end of period
Interest incurred       $ 47,734     $ 53,704     $ 201,103      $ 221,071

PulteGroup, Inc.
Reconciliation of Non-GAAP Financial Measures

This report contains information about our home sale gross margins reflecting
certain adjustments. This measure is considered a non-GAAP financial measure
under the SEC's rules and should be considered in addition to, rather than as
a substitute for, the comparable GAAP financial measure as a measure of our
operating performance. Management and our local divisions use this measure in
evaluating the operating performance of each community and in making strategic
decisions regarding sales pricing, construction and development pace, product
mix, and other daily operating decisions. We believe it is a relevant and
useful measure to investors for evaluating our performance through gross
profit generated on homes delivered during a given period and for comparing
our operating performance 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
gross margins and any adjustments thereto before comparing our measure to that
of such other companies.

The following table sets forth a reconciliation of this non-GAAP financial
measure to the GAAP financial measure that management believes to be most
directly comparable ($000's omitted):

Home Sale Gross
Margin
                     Three Months Ended
                     December 31,   September 30,  June 30,       March 31,    December 31,
                     2012           2012           2012           2012         2011
Home sale revenues   $ 1,481,517    $ 1,232,704    $ 1,024,405    $ 813,786    $ 1,167,141
Home sale cost of    1,228,201      1,023,704      869,379        712,166      1,021,873
revenues
Home sale gross      253,316        209,000        155,026        101,620      145,268
margin
Add:
Impairments (a)      2,250          385            633            3,700        7,885
Capitalized
interestamortization 67,880         57,155         52,070         47,186       63,979
(a)
Adjusted home sale   $ 323,446      $ 266,540      $ 207,729      $ 152,506    $ 217,132
gross margin
Home sale gross
margin as a
                     17.1        %  17.0        %  15.1        %  12.5      %  12.4        %
percentage of home
sale revenues
Adjusted home sale
gross margin as a
                     21.8        %  21.6        %  20.3        %  18.7      %  18.6        %
percentage of home
sale revenues
(a) Write-offs of capitalized interest related to impairments are reflected in capitalized
interest amortization.

SOURCE PulteGroup, Inc.

Website: http://pultegroupinc.com
Contact: Investors: Jim Zeumer, +1-248-433-4502, jim.zeumer@pultegroup.com