PulteGroup, Inc. Reports First Quarter 2013 Financial Results

        PulteGroup, Inc. Reports First Quarter 2013 Financial Results

- Q1 Net Income of $0.21 Per Share Compared with Prior Year Net Loss of
($0.03) Per Share

- Adjusted Gross Margin of 22.9% Increased 420 Basis Points Over Prior Year
and 110 Basis Points Over Q4 2012

- SG&A Lowered to 11.8% of Home Sale Revenues Compared with 15.2% in the Prior

- Backlog Value Increased 52% to $2.4 Billion; Unit Backlog Up 35% to 7,825

- Net New Orders Increased 4% to 5,200 Homes Generated from 14% Fewer

- Quarter Ending Cash Balance of $1.7 Billion Up $183 Million From Year End

- Company to Redeem All Outstanding 2014 Senior Notes Totaling $399 Million

PR Newswire

BLOOMFIELD HILLS, Mich., April 25, 2013

BLOOMFIELD HILLS, Mich., April 25, 2013 /PRNewswire/ --PulteGroup, Inc.
(NYSE: PHM) announced today financial results for its first quarter ended
March 31, 2013. For the quarter, the Company reported net income of $82
million, or $0.21 per share, compared with a net loss of $12 million, or
($0.03) per share, in the prior year.

"PulteGroup has gotten off to an extremely strong start in 2013, as the
Company continues to realize significant improvement across key operating
metrics including gross margin, overhead leverage, inventory turns and return
on invested capital," said Richard J. Dugas, Jr., PulteGroup Chairman,
President and CEO. "These gains, which are consistent with the Company's
ongoing value creation work, helped drive our outstanding first quarter
profitability and cash flows.

"The stronger demand which the housing industry saw throughout 2012 has
carried into the spring selling season of 2013. We experienced higher traffic
in our communities with buyers feeling a greater sense of urgency given the
combination of limited product inventory and rising prices found in many
markets throughout the country. Within this environment, and aligned with our
focus on generating higher returns, we continue to emphasize price, margin
realization and effective management of land assets. Our successful execution
of these strategies can be seen in the higher selling prices and improved
margins achieved across each of our primary brands.

"Given the operational gains demonstrated by our strong first quarter results,
and our expectations for an ongoing recovery in new home demand, we have again
increased our authorized investment in land and development for 2013 and 2014
to $1.4 billion annually. The incremental investment, which amounts to
approximately $200 million in each year, will be made using the defined and
disciplined process we put in place more than 18 months ago."

Home sale revenues for the first quarter increased 35% to $1.1 billion,
compared with $814 million last year. Higher revenues for the quarter
resulted from a 23% increase in closings to 3,833 homes combined with a 10%,
or $26,000, increase in average selling price to $287,000. The higher average
selling price reflects price increases implemented by the Company and a shift
in the mix of closings toward move-up homes which carry higher prices.

The Company's adjusted home sale gross margin for the quarter was 22.9%, which
is an increase of 420 basis points over the prior year and 110 basis points
over the fourth quarter of 2012. Homebuilding SG&A expense for the period was
$130 million, or 11.8% of home sale revenues. SG&A expense for the first
quarter of 2013 decreased by 340 basis points from the 15.2% of home sale
revenues reported in the prior year.

For the quarter, the Company reported 5,200 net new orders, an increase of 4%
over prior year orders of 4,991 homes. The dollar value of these orders was
$1.6 billion, an increase of 18% over the prior year order value of $1.3
billion. At quarter end, the Company had 650 communities, which represents a
decrease of 14% from the end of the first quarter last year. Contract backlog
at quarter end was valued at $2.4 billion and totaled 7,825 homes, which
represent increases of 52% and 35%, respectively, over the prior year.

The Company's financial services operations reported pretax income of $14
million for the quarter, compared with pretax income of $7 million in the
prior year. Financial services benefitted from increased loan originations
resulting from the Company's higher homebuilding volumes in combination with a
400 basis point increase in capture rate to 82% in the first quarter.

The Company's cash position increased $183 million during the quarter to $1.7
billion. The increase in cash relates primarily to the Company's increased
closing volumes and improved profitability.

Company to Redeem $399 Million of Senior Notes

In an earlier release, PulteGroup announced that it will use a portion of its
cash on hand to redeem all outstanding Senior Notes due in 2014. The
redemptions, which will total $399 million in aggregate principal amount, will
be comprised of the $188 million of the Company's 5.25% Notes due January 2014
and $211 million of its 5.70% Notes due May 2014.

"Our significant liquidity, including the strong current year cash generation
resulting from our improving operating performance, allows us to
opportunistically reduce our nearest term debt while increasing our
authorization for land acquisition and development in 2013 and 2014," said Bob
O'Shaughnessy, Executive Vice President and Chief Financial Officer. "Upon
completion of these transactions, we will have retired almost $1.0 billion of
debt since the start of 2012, and expect our debt to capital ratio will drop
by approximately 400 basis points from the 52% reported as of March 31, 2013."

A conference call discussing PulteGroup's first quarter results is scheduled
for Thursday, April 25, 2013, at 8:30 a.m. Eastern Time. Interested investors
can access the live webcast via PulteGroup's corporate website at

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, 2012, 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 approximately55
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
www.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)

                                                     Three Months Ended
                                                     March 31,
                                                     2013          2012
Home sale revenues                                   $ 1,099,752   $ 813,786
Land sale revenues                                   26,131        38,398
                                                     1,125,883     852,184
Financial Services                                   36,873        28,852
Total revenues                                       1,162,756     881,036
Homebuilding Cost of Revenues:
Home sale cost of revenues                           901,470       712,166
Land sale cost of revenues                           22,018        33,397
                                                     923,488       745,563
Financial Services expenses                          22,588        22,009
Selling, general and administrative expenses         129,626       123,314
Other expense (income), net                          4,772         6,619
Interest income                                      (1,173)       (1,199)
Interest expense                                     207           217
Equity in (earnings) loss of unconsolidated entities 898           (1,996)
Income (loss) before income taxes                    82,350        (13,491)
Income tax expense (benefit)                         588           (1,825)
Net income (loss)                                    $ 81,762      $ (11,666)
Net income (loss) per share:
Basic                                                $ 0.21        $ (0.03)
Diluted                                              $ 0.21        $ (0.03)
Number of shares used in calculation:
Basic                                                384,228       380,502
Effect of dilutive securities                        6,093         —
Diluted                                              390,321       380,502

PulteGroup, Inc.

Condensed Consolidated Balance Sheets

($000's omitted)

                                                    March31,     December31,
                                                    2013          2012
Cash and equivalents                                $ 1,592,924   $ 1,404,760
Restricted cash                                     66,577        71,950
House and land inventory                            4,112,797     4,214,046
Land held for sale                                  92,153        91,104
Land, not owned, under option agreements            38,988        31,066
Residential mortgage loans available-for-sale       238,204       318,931
Investments in unconsolidated entities              44,744        45,629
Other assets                                        408,781       407,675
Intangible assets                                   145,973       149,248
                                                    $ 6,741,141   $ 6,734,409
Accounts payable, including book overdrafts of      $ 176,696     $ 178,274
$34,676 and $42,053 in 2013 and 2012, respectively
Customer deposits                                   126,069       101,183
Accrued and other liabilities                       1,397,638     1,418,063
Income tax liabilities                              196,863       198,865
Financial Services debt                             56,631        138,795
Senior notes                                        2,511,729     2,509,613
                                                    4,465,626     4,544,793
Shareholders' equity                                2,275,515     2,189,616
                                                    $ 6,741,141   $ 6,734,409

PulteGroup, Inc.

Consolidating Statements of Cash Flows

($000's omitted)

                                                    Three Months Ended
                                                    March 31,
                                                    2013          2012
Cash flows from operating activities:
Net income (loss)                                   $ 81,762      $ (11,666)
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 704           5,896
Depreciation and amortization                       7,339         7,393
Stock-based compensation expense                    7,141         3,719
Equity in (earnings) loss of unconsolidated         898           (1,996)
Distributions of earnings from unconsolidated       265           3,518
Other non-cash, net                                 2,331         421
Increase (decrease) in cash due to:
Restricted cash                                     860           53
Inventories                                         99,760        45,969
Residential mortgage loans available-for-sale       80,727        74,073
Other assets                                        (370)         9,939
Accounts payable, accrued and other liabilities     (8,795)       (34,466)
Income tax liabilities                              (2,002)       11,837
Net cash provided by (used in) operating activities 270,620       114,690
Cash flows from investing activities:
Distributions from unconsolidated entities          200           —
Investments in unconsolidated entities              (593)         (49)
Net change in loans held for investment             10            293
Change in restricted cash related to letters of     4,513         11,938
Proceeds from the sale of property and equipment    59            4,475
Capital expenditures                                (5,378)       (3,758)
Net cash provided by (used in) investing activities (1,189)       12,899
Cash flows from financing activities:
Financial Services borrowings (repayments)          (82,164)      —
Other borrowings (repayments)                       (213)         1,920
Stock option exercises                              7,537         —
Stock repurchases                                   (6,427)       (845)
Net cash provided by (used in) financing activities (81,267)      1,075
Net increase (decrease) in cash and equivalents     188,164       128,664
Cash and equivalents at beginning of period         1,404,760     1,083,071
Cash and equivalents at end of period               $ 1,592,924   $ 1,211,735
Supplemental Cash Flow Information:
Interest paid (capitalized), net                    $ (23,095)    $ (22,808)
Income taxes paid (refunded), net                   $ (3,026)     $ (11,142)

PulteGroup, Inc.

Segment Data

($000's omitted)

                                                     Three Months Ended
                                                     March 31,
                                                     2013          2012
Home sale revenues                                   $ 1,099,752   $ 813,786
Land sale revenues                                   26,131        38,398
Total Homebuilding revenues                          1,125,883     852,184
Home sale cost of revenues                           901,470       712,166
Land sale cost of revenues                           22,018        33,397
Selling, general, and administrative expenses        129,626       123,314
Equity in (earnings) loss of unconsolidated         926           (1,978)
Other expense (income), net                          4,772         6,619
Interest income, net                                 (966)         (982)
Income (loss) before income taxes                    $ 68,037      $ (20,352)
Income (loss) before income taxes                    $ 14,313      $ 6,861
Income (loss) before income taxes                    $ 82,350      $ (13,491)

PulteGroup, Inc.

Segment data, continued

($000's omitted)

                        Three Months Ended
                        March 31,
                        2013                          2012
Home sale revenues      $     1,099,752               $     813,786
Closings - units
Northeast               302                           352
Southeast               651                           535
Florida                 583                           476
Texas                   897                           699
North                   666                           531
Southwest               734                           524
                        3,833                         3,117
Average selling price   $     287                     $     261
Net new orders - units
Northeast               571                           553
Southeast               959                           774
Florida                 804                           768
Texas                   1,080                         1,109
North                   969                           869
Southwest               817                           918
                        5,200                         4,991
Net new orders -        $     1,581,965               $     1,339,977
dollars (a)
Unit backlog
Northeast               891                           626
Southeast               1,219                         841
Florida                 1,286                         950
Texas                   1,638                         1,235
North                   1,570                         1,047
Southwest               1,221                         1,099
                        7,825                         5,798
Dollars in backlog      $     2,413,753               $     1,585,840
(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)

                       Three Months Ended
                       March 31,
                       2013         2012
Origination volume     2,722        2,021
Origination principal  $ 621,997    $ 429,465
Capture rate           82.3      %  78.3      %

Supplemental Data

($000's omitted)

                                           Three Months Ended
                                           March 31,
                                           2013        2012
Interest in inventory, beginning of period $ 331,880   $ 355,068
Interest capitalized                       42,656      51,323
Interest expensed                          (53,677)    (47,186)
Interest in inventory, end of period       $ 320,859   $ 359,205
Interest incurred                          $ 42,656    $ 51,323

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
             March31,      December31,   September30,  June30,       March31,
             2013           2012           2012           2012           2012
Home sale    $ 1,099,752    $ 1,481,517    $ 1,232,704    $ 1,024,405    $ 813,786
Home sale
cost of      901,470        1,228,201      1,023,704      869,379        712,166
Home sale    198,282        253,316        209,000        155,026        101,620
gross margin
Land and
valuation    —              2,250          385            633            3,700
interest     53,677         67,880         57,155         52,070         47,186
home sale    $ 251,959      $ 323,446      $ 266,540      $ 207,729      $ 152,506
gross margin
Home sale
gross margin
as a
             18.0        %  17.1        %  17.0        %  15.1        %  12.5      %
of home sale
home sale
gross margin
as a         22.9        %  21.8        %  21.6        %  20.3        %  18.7      %

of home sale
(a) Write-offs of capitalized interest related to
impairments are reflected in capitalized interest

SOURCE PulteGroup, Inc.

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