Pulte Homes, Inc. (NYSE:PHM), Bloomfield Hills, Mich., on Monday after market close reported a net loss for the second quarter enede June 30 of $189.5 million, or $0.74 per share, compared with a net loss of $158.4 million, or $0.63 per share, for the prior year. Analysts were expecting a loss of $0.72 per share.
The loss included pre-tax charges of $119.3 million in inventory impairments and other land-related charges, compared with charges of $220.1 million in the prior year. Second quarter 2008 results also reflect a tax benefit of$56.8 million, primarily due to an adjustment in Pulte¹s deferred income tax assets.
Total revenues dropped 57.6% to $679 million. Revenues from home building settlements in the second quarter decreased 58% to $654 million as closings dropped 54% to 2,500 homes and the average selling price declined 9% to $261,000.
Net new-home orders for the second quarter were down 34.4% to 3,367 homes, valued at $862 million, down 38.% from last year's quarter. However, orders rose 11% compared with the first quarter. Ending backlog as of June 30, 2009, was down by more than half at 3,916 homes worth $1.1 billion, down from 8,254 homes worth $2.4 billion at the same time last year. Pulte¹s inventory of unsold homes was 1,815 units at quarter's end, down 42% from the comparable 2008 period and down 24% from the first quarter of 2009.
Homebuilding SG&A was down 36% to $114.1 million for the quarter compared with the prior-year quarter, Pulte said. The company provided neither margin detail nor lot counts in its earnings release.
The company¹s financial services operations reported a pre-tax loss of $9.4 million on lower loan originations in-line with the reduced volume of closings, as well as increased loan loss reserves. The mortgage capture rate for the quarter was 91%, compared with 92% for the same quarter last year.
Pulte ended the quarter with $1.6 billion in cash after use of $180 million for debt reduction. It reported a debt-to-capitalization ratio of 58% and a net debt-to-capitalization ratio of 38%.
³Pulte¹s second quarter results reflect an industry under pressure as a weak economy, rising unemployment and soft consumer confidence continue to depress home buying demand,² said Richard J. Dugas, Jr.,president and CEO of Pulte. ³Although year-over-year performance numbers for the second quarter show the market stress, sequentially, we have seen some positive signs as net new orders increased 11% on 9% fewer communities, cancellation rates were stable and our unit backlog increased by 28 percent, or almost 900 homes."
Dugas said the company's planned merger with Centex is proceeding on track to a shareholder vote on August 18.
Shares of Pulte were down a bit more than 1% at $11.64 in after-market trading after closing up 3.4% at $11.76 earlier in the day.