ulteGroup, Inc. announced today financial results for its first quarter ended March 31, 2022. For the quarter, the Company reported net income of $455 million, or $1.83 per share. In the prior year, the Company reported net income of $304 million, or $1.13 per share, and adjusted net income of $343 million, or $1.28 per share. Adjusted net income for the prior year period excludes a pre-tax charge of $61 million associated with a cash tender for $300 million of debt and a $10 million pre-tax insurance benefit recorded in the period.

“Our quarterly financial results reflect the favorable operating conditions the homebuilding industry has experienced for multiple quarters, as PulteGroup realized significant increases in homebuilding revenues, gross margin, net income and ROE,” said Ryan Marshall. “PulteGroup’s national and local market scale are providing important advantages in getting our homes constructed given today’s challenging environment as supply-chain disruptions continue to impact the market.”

“In the first quarter, we continued to realize strong demand across our buyer groups and geographic markets, as a growing economy, an outstanding job market and rising wages helped to mitigate impacts from higher home prices and rising mortgage rates,” added Marshall. “Within today’s dynamic housing market, we remain disciplined in our operating practices and allocation of capital and remain focused on achieving high returns on our investments.”

First Quarter Financial Results

Home sale revenues for the first quarter increased 18% to $3.1 billion. Higher revenues for the quarter were driven by an 18% increase in average sales price to $508,000, as closings of 6,039 homes were consistent with the prior year.

The Company’s home sale gross margin in the first quarter was 29.0%, which is an increase of 350 basis points over the prior year and is up 220 basis points from the fourth quarter of 2021. SG&A expense for the first quarter was $329 million, or 10.7% of home sale revenues. Prior year reported SG&A expense was $272 million, or 10.5% of home sale revenues. Excluding a $10 million pre-tax insurance benefit recorded in the prior year period, the Company’s adjusted SG&A expense for the first quarter of 2021 was $282 million, or 10.9% of home sale revenues.