PulteGroup, Inc. (PHM) has reported 19.80 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $273.17 million, or $0.83 a share in the quarter, compared with $228.03 million, or $0.64 a share for the same period last year.
Revenue during the quarter grew 20.93 percent to $2,493.08 million from $2,061.63 million in the previous year period.
Cost of revenue rose 24.89 percent or $365.88 million during the quarter to $1,835.93 million. Gross margin for the quarter contracted 234 basis points over the previous year period to 26.36 percent.
Total expenses were $2,072.94 million for the quarter, up 22.33 percent or $378.36 million from year-ago period. Operating margin for the quarter contracted 95 basis points over the previous year period to 16.85 percent.
Operating income for the quarter was $420.13 million, compared with $367.04 million in the previous year period.
Revenue from real estate activities during the quarter increased 20.85 percent or $420.71 million to $2,438.90 million.
"With the gains achieved in our fourth quarter results, PulteGroup completed a year in which it realized significant growth, including double-digit year-over-year increases in orders, closings, revenues, net income and backlog," said Ryan Marshall, president and chief executive officer of PulteGroup. "Consistent with the Company's long-term objectives, our outstanding 2016 operating results drove strong returns on invested capital, which we view as an important component to delivering increased shareholder value over the housing cycle."
Operating cash flow turns positive
PulteGroup, Inc. has generated cash of $68.27 million from operating activities during the year as against cash outgo of $337.59 million in the last year.
The company has spent $471.19 million cash to meet investing activities during the year as against cash outgo of $34.56 million in the last year.
Cash flow from financing activities was $350.74 million for the year as against cash outgo of $161.63 million in the last year period.
Cash and cash equivalents stood at $723.25 million as on Dec. 31, 2016, down 6.73 percent or $52.19 million from $775.44 million on Dec. 31, 2015.
Total assets grew 13.51 percent or $1,211.04 million to $10,178.20 million on Dec. 31, 2016. On the other hand, total liabilities were at $5,518.84 million as on Dec. 31, 2016, up 31.16 percent or $1,311 million from year-ago.
Return on assets moved up 14 basis points to 2.68 percent in the quarter. At the same time, return on equity moved up 107 basis points to 5.86 percent in the quarter.
Debt increases substantially
Total debt was at $3,441.64 million as on Dec. 31, 2016, up 46.93 percent or $1,099.26 million from year-ago. Shareholders equity stood at $4,659.36 million as on Dec. 31, 2016, down 2.10 percent or $99.96 million from year-ago. As a result, debt to equity ratio went up 25 basis points to 0.74 percent in the quarter.
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