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BLOOMFIELD HILLS, Mich., April 23 /PRNewswire-FirstCall/ — Pulte Homes announced today financial results for its first quarter ended March 31, 2008. For the quarter, the Company reported a net loss of $696.1 million, or $2.75 per share, compared with an $85.7 million net loss for the prior year first quarter, or $0.34 per share. The first quarter 2008 net loss included $663.6 million of pre-tax charges related to inventory impairments and other land-related charges. Impairments and land-related charges for the prior year quarter were $132.1 million. Consolidated revenues for the quarter were $1.4 billion, a decline of 23% from prior year revenues of $1.9 billion.
“The difficult housing environment continued to erode during the first quarter of 2008,” said Richard J. Dugas, Jr., President and CEO of Pulte Homes. “Buyer demand for new homes continues to be soft, home prices remain under pressure, and overall buyer confidence is weak. Despite these market challenges, Pulte continues to make progress on its cash position, selling homes and reducing its cost structure. Our results were better than the guidance previously provided of a loss of $0.15 to $0.30 per share from continuing operations, exclusive of any impairments or land-related charges. This performance was accomplished through a company-wide commitment to sell and close homes during the quarter and continued efforts to control overhead. We also reduced both our level of speculative inventory and number of controlled lots. We ended the quarter with a $1.1 billion cash balance, inclusive of a $212 million tax refund, and no debt outstanding under our $1.6 billion revolving credit facility. Pulte will continue to position the company to capitalize on any market stabilization and eventual recovery.”
Revenues from homebuilding settlements in the first quarter decreased 22% to $1.4 billion compared with $1.8 billion last year. The change in revenue for the quarter reflects a 13% decrease in closings to 4,733 homes, and an 11% decrease in average selling price to $295,000.
First quarter homebuilding pre-tax loss was $705.1 million, compared with a $148.4 million pre-tax loss for the prior year quarter. The pre-tax loss for the 2008 first quarter reflects a decline in gross margins primarily related to the impact of impairments recorded in connection with our land inventory. Homebuilding SG&A expense decreased $79.7 million, or 28%, compared with the prior year quarter. During the first quarter of 2008, the Company recorded $663.6 million of impairments and land-related charges, including $598.8 million related to land impairments, $0.3 million associated with the write-off of land deposits and pre-acquisition costs, and $64.5 million of impairments of land held for sale. For the prior year quarter, these impairments and land-related charges totaled $132.1 million.
Net new home orders for the first quarter were 5,402 homes, valued at $1.5 billion, which represent declines of 36% and 50%, respectively, from prior year first quarter results. Pulte Homes’ ending backlog as of March 31, 2008 was valued at $2.6 billion (8,559 homes), compared with a value of $4.7 billion (13,334 homes) at the end of last year’s first quarter. At the end of the first quarter 2008, the Company’s debt-to-capitalization ratio was 49%, and on a net debt-to-capitalization basis was 40%.
The Company’s financial services operations reported pre-tax income of $15 million for the first quarter 2008, compared with $13.2 million of pre-tax income for the prior year’s quarter. The increase in first quarter 2008 pre-tax income was partially due to a shift in the mix of mortgage loans closed toward more profitable agency-backed products. This was partially offset by a 32% decline in mortgage loans originated during the quarter compared with the prior year’s quarter. The mortgage capture rate for the quarter was 89.9%, compared with 93% for the same quarter last year.
Second Quarter 2008 Guidance
“For the second quarter of 2008 we are projecting a net loss from continuing operations in the range from $0.10 to $0.20 per share, exclusive of a tax benefit and any additional impairments or land-related charges,” said Dugas. “Pulte also remains focused on inventory reduction and cash management, and continues to target a cash position by the end of 2008 of $2.0 billion to $2.2 billion.”
A conference call discussing Pulte Homes’ first quarter results will be held Thursday, April 24, 2008 at 8:30 a.m. Eastern Time, and web cast live via Pulte.com. Interested investors can access the call via the Company’s home page at .
Certain statements in this release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among other things, (1) general economic and business conditions; (2) interest rate changes and the availability of mortgage financing; (3) the relative stability of debt and equity markets; (4) competition; (5) the availability and cost of land and other raw materials used by the Company in its homebuilding operations; (6) the availability and cost of insurance covering risks associated with the Company’s business; (7) shortages and the cost of labor; (8) weather related slowdowns; (9) slow growth initiatives and/or local building moratoria; (10) governmental regulation, including the interpretation of tax, labor and environmental laws; (11) changes in consumer confidence and preferences; (12) required accounting changes; (13) terrorist acts and other acts of war; and (14) other factors over which the Company has little or no control. See the Company’s Annual Report on Form 10-K and Annual Report to Shareholders for the year ended December 31, 2007 and other public filings with the Securities and Exchange Commission for a further discussion of these and other risks and uncertainties applicable to Pulte’s business. Pulte undertakes no duty to update any forward-looking statement whether as a result of new information, future events or changes in Pulte’s expectations.
About Pulte Homes
Pulte Homes, Inc., , based in Bloomfield Hills, Mich., is one of America’s largest home building companies with operations in 51 markets and 26 states. During its 58-year history, the company has delivered more than 500,000 new homes. Since 2000, Pulte Homes operations have earned more top-three finishes than any other homebuilder in the annual J.D. Power and Associates(R) New Home-Builder Customer Satisfaction Study(sm). Under its Del Webb brand, Pulte is the nation’s largest builder of active adult communities for people age 55 and older. Its DiVosta Homes brand is renowned in Florida for its Built Solid(TM) building system and distinctive master-planned communities. Pulte Mortgage LLC is a nationwide lender offering Pulte customers a wide variety of loan products and superior service. Websites: ; ; .
Pulte Homes, Inc.
Condensed Consolidated Results
Of Operations
(000’s omitted, except per share data)
(Unaudited)

Three Months Ended
March 31,
————————–
2008 2007
———– ———-
CONSOLIDATED RESULTS:

Revenues:
Homebuilding $1,398,109 $1,829,908
Financial Services 43,488 39,581
Other non-operating 7,222 1,944
———- ———-
Total Revenues $1,448,819 $1,871,433
========== ==========
Pre-tax income (loss):
Homebuilding $(705,130) $(148,386)
Financial Services 15,044 13,195
Other non-operating (2,970) (7,357)
———- ———-

Loss before income taxes (693,056) (142,548)

Income taxes (benefit)* 3,088 (56,876)
———- ———-
Net loss $(696,144) $(85,672)
========== ==========
EARNINGS PER SHARE -
ASSUMING DILUTION:

Net loss $(2.75) $(0.34)
========== ==========
Shares used in per share calculations 253,166 251,919
========== ==========

* Due to the uncertainty of the realization of a $258 million deferred
tax benefit associated with the $693.1 million pre-tax loss in the first
quarter 2008, the Company recorded a valuation allowance against that
deferred tax benefit during the quarter, in accordance with Statement of
Financial Accounting Standards No. 109 “Accounting for Income Taxes.”

Pulte Homes, Inc.
Condensed Consolidated Balance Sheets
($000’s omitted)

March 31, December 31,
2008 2007
(Unaudited) (Unaudited)
———— ————-
ASSETS
Cash and equivalents $1,071,165 $1,060,311
Unfunded settlements 29,017 38,714
House and land inventory 6,179,847 7,027,511
Land held for sale 324,801 252,563
Land, not owned, under
option agreements 19,507 20,838
Residential mortgage
loans available-for-sale 284,104 447,089
Investments in
unconsolidated entities 109,991 105,479
Other assets 922,786 1,167,292
Deferred income tax assets 105,906 105,906
———- ———–
$9,047,124 $10,225,703
========== ===========
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Liabilities:
Accounts payable,
accrued and other
liabilities $1,578,921 $1,859,911
Collateralized short-
term debt, recourse
solely to applicable
subsidiary assets 257,139 440,611
Income taxes 108,105 126,758
Senior notes 3,478,577 3,478,230
———- ———–
Total Liabilities 5,422,742 5,905,510

Shareholders’ Equity 3,624,382 4,320,193
———- ———–
$9,047,124 $10,225,703
========== ===========

Pulte Homes, Inc.
Segment Data
($000’s omitted)
(Unaudited)

Three Months Ended
March 31,
—————————–
2008 2007
———- ———-
HOMEBUILDING:
Home sales (settlements) $1,396,431 $1,789,282
Land sales 1,678 40,626
———- ———-
Homebuilding Revenue 1,398,109 1,829,908

Home cost of sales (1,845,054) (1,594,471)
Land cost of sales (64,948) (56,362)
Selling, general
& administrative expense (201,937) (281,653)
Other income (expense), net 8,700 (45,808)
———- ———-

Pre-tax loss $(705,130) $(148,386)
=========== ===========
FINANCIAL SERVICES:
Pre-tax income $15,044 $13,195
=========== ===========
OTHER NON-OPERATING:
Pre-tax loss:
Net interest income $6,474 $954
Other expense, net (9,444) (8,311)
———– ———–
Total Other non-operating $(2,970) $(7,357)
=========== ===========

Pulte Homes, Inc.
Business Operating Data
($000’s omitted)
(Unaudited)

Three Months Ended
March 31,
————————-
2008 2007
———- ———-
Homebuilding settlement
revenues $1,396,431 $1,789,282
========== ==========
Unit settlements:
Northeast 393 371
Southeast 748 755
Florida 741 1,027
Midwest 623 643
Central 551 699
Southwest 1,197 1,333
California 480 592
———- ———-
4,733 5,420
========== ==========
Average selling price $295 $330
========== ==========
Unit net new orders:
Northeast 502 704
Southeast 824 1,006
Florida 993 1,522
Midwest 579 1,020
Central 530 624
Southwest 1,467 2,467
California 507 1,156
———- ———-
5,402 8,499
Net new orders - ========== ==========
dollars* $1,461,000 $2,912,000
========== ==========
Unit backlog:
Northeast 900 1,250
Southeast 1,357 1,959
Florida 1,504 1,707
Midwest 784 1,774
Central 849 1,047
Southwest 2,280 3,853
California 885 1,744
———- ———-
8,559 13,334
========== ==========
Dollars in backlog $2,574,000 $4,703,000
========== ==========

* Net new order dollars represent a composite of new order dollars
combined with other movement of the dollars in backlog related to
cancellations and change orders.

Pulte Homes, Inc.
Business Operating Data, continued
($000’s omitted)
(Unaudited)

Three Months Ended
March 31,
———————-
2008 2007
——— ———–
MORTGAGE ORIGINATIONS:

Origination volume 3,514 5,158
========= ===========
Origination principal $803,400 $1,143,000
========= ===========
Capture rate percentage 89.9% 93.0%
========= ===========

Pulte Homes, Inc.
Supplemental Information
($000’s omitted)
(Unaudited)

Three Months Ended
March 31,
——————
2008 2007
——- ——-
Interest expense:
Homebuilding (included
in home cost of sales) $58,492 $47,958
Financial Services 1,870 4,618
Other non-operating 748 990
——- ——-
Total interest expense $61,110 $53,566
======= =======
Depreciation & amortization $19,715 $21,660
======= =======

Pulte Homes

WASHINGTON, April 2, 2008 /PRNewswire/ — It has been a very, very good spring for John Bosworth and Bosworth Steel Erectors, Inc., the steel erection company he heads. Innovators in steel construction and modification, Bosworth Steel Erectors just won class III project of the year honors at the recent SEAA Convention (Steel Erectors Association of America — ) for steel erection on the new Nationals Ballpark in Washington, D.C. Their work on Nationals Stadium also earned Bosworth Steel project leaders Jim Avery, David Sweeney and Kevin Ritchey 2008 Craftsmanship Awards from the prestigious Washington Building Congress () awarded last week in D.C. *(PHOTO 72dpi: Send2Press.com/mediaboom/08-0402-MDSad_72dpi.jpg) *(Photo Caption: Bosworth Steel Erectors, Inc. of Dallas erected the steel structure for the new, $611 million plus Nationals Ballpark in Washington, D.C. The stadium complex opened officially last weekend.)The 41,888-seat stadium is the new home park for the Major League baseball team, the Washington Nationals () and the centerpiece of D.C.’s massive, new Ballpark District — a billion dollar, multi-use riverfront development little more than a mile away from the U.S. Capitol. The ballpark opened officially March 30 with the home team winning the season opener 3-2 against the Atlanta Braves.Financing for the $611 million plus project was approved in December 2004. Steel erection on the stadium began in October 2006. The skeletal design and construction was divided into nine stages, a procedure that allowed the production and installation of one section of steel framework while engineers designed the next. The last crane pulled away on June 30, 2007. At 23 months, Nationals holds the record for the shortest duration build ever attempted for a major league baseball stadium.”We had tremendous schedule pressures and the logistical challenges of building from the inside,” said Bosworth of his company’s work on the stadium, “but we completed the job on time to the day.” Bosworth credits the union ironworkers who worked 60-hour weeks to erect the more than 7,800 tons of structural steel that shapes the iconic and impressive, 21st century limestone and glass form of the stadium. At the peak of the project, a team of 45 ironworkers worked with two heavy lift cranes (a 330-ton and 300-ton) to put the steel structure in place in record time.A third-generation union ironworker himself, Bosworth came up through the ranks, following his father and grandfather in that trade and commitment to union principles of being the best and doing the best.Today Bosworth is on the owner/manager side of the equation, with revenues above $30 million, Bosworth Steel () is one of the top erectors in the U.S. Though he has scaled the heights of his industry, Bosworth has not moved away from his respect for his roots as a union ironworker. He serves as president of the Signatory Contractors Association affiliated with District Council of Texas and the Mid-South () — the organization representing union ironworkers in Texas, Oklahoma, Louisiana, Mississippi, Arkansas and the central Gulf Coast. The District Council is part of IMPACT — the Ironworker Management Progressive Action Cooperative Trust () a collaborative, national initiative between the Iron Workers Union and leading construction companies, fabricators and steel erectors. The coalition focuses on enhancing the industry from quality and safety perspectives and building market opportunity for signatory contractors and union ironworkers.Bosworth is positive about the merits of his relationship as a business owner with the labor union central to his industry. For him it is about delivering a quality product, no matter how complex the job, on time and on budget and skilled, experienced manpower is essential in that delivery. “You know,” Bosworth concludes, “I don’t think for one minute that I could have built a company like this and gotten it to where it is today with its financial strength or been able to build projects like D.C.’s Nationals Stadium without the skilled labor provided by the Ironworkers.”General contractors for Washington Nationals Baseball Stadium were Clark/Hunt/Smoot — a joint venture between Clark Construction Group, LLC of Bethesda, Md., Hunt Construction Group of Indianapolis and Smoot Construction of Washington, D.C., three of the nation’s leading general contractors. The sports architecture firm, HOK Sport () and Devrouax & Purnell Architects/Planners () in a joint venture were lead architects and designers on the stadium complex. Engineers were Thornton Tomasetti/ReStl, a joint venture. Steel fabrication was done by Banker Steel Company, LLC.This release was issued on behalf of the above organization by Send2Press(R), a unit of Neotrope(R). Bosworth Steel Erectors, Inc.