Pulte Homes (NYSE:PHM), Bloomfield Hills, Mich., after market close Wednesday reported a net loss of $338.2 million (-$1.33 per share) for the fourth quarter of 2008, driven by inventory impairments and land-related charges of $380 million and a 43% drop in revenues to $1.7 billion.
The loss was narrowed from $874.7 million ($ -3.46 per share) in fourth quarter, 2007 on revenues of $2.9 billion with impairments of $509 million.
Revenues from closings in the quarter plummeted 45% to $1.5 billion as the company closed 5,474 homes, 37% fewer than the 2007 quarter. The average selling price fell 13% to $278,000.
New home orders for the quarter were off 61% to 1,763 homes with a dollar value of $442 million, a 63.3% drop from fourth quarter, 2007. Backlog at quarter's end was valued at $631 million (2,174 homes), compared with a value of $2.5 billion (7,890 homes) at the end of the same period in 2007.
Home building SG&A expense totaled $205 million for the quarter, including $15 million of severance-related charges, compared to $247.3 million in 2007's fourth quarter.
Financial services reported a pre-tax loss of $7.9 million for the quarter, compared with $10.3 million of pre-tax income for the prior year's quarter, due primarily to a 42% decline in mortgage loans and an increase in loan loss reserves.
For the year ended December 31, 2008, Pulte Homes' net loss was $1.5 billion(-$5.81 per share), compared with a loss of $2.3 billion (-$8.94 per share) for the prior year. Consolidated revenues for 2008 were $6.3 billion, down 32% from $9.3 billion for 2007. For the year, the company took $1.5 billion of impairments and land-related charges, including $1.2 billion related to land impairments, $33 million associated with the write-off of land deposits and pre-acquisition costs, $271 million of impairments of land held for sale, and $18 million related to the Company's investment in unconsolidated joint ventures.
The company ended the year with $1.65 billion in cash on its balance sheet and no borrowings on its revolving credit facility. Its debt-to-capitalization ratio was 52.8%.
"The homebuilding operating environment took yet another step down during the fourth quarter of 2008," said Richard J. Dugas, Jr., president and CEO in a statement. "During the quarter, consumers faced unprecedented levels of financial uncertainty that dramatically impacted purchases of all large-ticket items, especially homes."