Pulte Homes Reports Third Quarter 2009 Financial Results
BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--Nov. 4, 2009-- Pulte Homes (NYSE: PHM):

Q3 Revenues Total $1.1 Billion
Q3 2009 Net Loss of $361 Million ($1.15 Per Share) Includes $134 Million of Merger and Debt Retirement Costs and $164 Million of Impairments and Related Charges
Q3 Homebuilding Gross Margin of 13.1%, Before the Impact of Interest, Merger Costs, Impairments and Land-related Charges, Increases 370 Basis Points from Q2 2009
Company Ends Quarter With $1.6 Billion in Cash After Retiring $1.7 Billion of Debt in the Period; Expects to Finish 2009 with $2.0 Billion in Cash
Company Raises Merger Synergy and Savings Target by 25% to $440 Million
Quarter-end Backlog of 8,383 Homes, Valued at $2.2 Billion
Pulte Homes (NYSE: PHM) announced today financial results for its third quarter ended September 30, 2009. For the quarter, the Company reported a net loss of $361.4 million, or $1.15 per share, inclusive of approximately $86.7 million of charges and transaction costs associated with its merger with Centex Corporation and $163.8 million in inventory impairments and other land-related charges. The Company also recorded a $47.4 million loss related to the debt retired in the quarter. For the comparable period in 2008, the Company reported a net loss of $280.4 million, or $1.11 per share, including impairments and land-related charges of $266.6 million.

Consolidated revenue for the quarter was $1.1 billion, compared with prior year revenue of $1.6 billion.

On August 18, 2009, Pulte Homes completed its previously announced merger with Centex Corporation. The Company’s 2009 third quarter and nine month financials are inclusive of Centex’s operations for the period from August 19, 2009 through September 30, 2009. Prior year results have not been adjusted for the merger.

“We are continuing to make progress in the performance of our business as Pulte’s third quarter gross margin before interest, merger costs, impairments and land-related charges expanded to 13.1%, an increase of 370 basis points from the second quarter 2009,” said Richard J. Dugas, Jr., Chairman, President and CEO of Pulte Homes. “Looking past the quarter, our merger with Centex offers powerful near-term opportunities as reflected in our increased synergy and savings target of $440 million on an annualized basis. In addition, our post-merger analysis indicates the potential to realize annualized purchasing synergies on the combined business in the range of $150 million to $200 million.

“Longer term, Centex’s strong brand and 27,000 finished lots, many in communities serving the first-time homebuyer, enable Pulte to expand its presence within this important customer segment with minimal future investment. We are rapidly integrating the two companies and are pleased with the opportunities we see to serve more customers, drive greater construction efficiencies, and accelerate our return to profitability.

“Beyond the impact of the merger, Pulte’s Q3 results reflect a homebuilding industry that continues its transition toward more stable market conditions as lower prices and historically low mortgage rates are helping to support homebuyer demand,” said Mr. Dugas. “Challenges remain, however, as economic weakness, foreclosures, rising unemployment and recent uncertainty over the expiration of the federal tax credit continue to influence buyer behavior.”



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