PulteGroup, Inc. (PHM) reported a narrower loss of $12 million or 3 cents per share (before special items) for the first quarter of 2010 compared to a loss of $515 million or $2.02 per share (before special items) in the year-ago quarter and the Zacks Consensus Estimate of a loss of 21 cents per share. The shrunken loss was attributable to a substantially rise in home sales, reflecting a recovery in the markets.
Consolidated revenues in the quarter shot up 75% to $1.02 billion. Revenues in the Homebuilding segment jumped 73% to $977 million, reflecting a 77% increase in closings to 3,795 homes, partially offset by a 2% decline in average selling price to $257,000.
Excluding impairments, interest expense and merger-related costs, home sale gross margin for the quarter was $160 million or 16.3%, compared to $49 million or 8.6% a year ago.
Net new home orders rose 43% to 4,320 homes during the quarter. The cancellation rate was 18%, down from 21% in the prior year quarter rate. The quarter-end backlog more than doubled to 6,456 homes, valued at $1.7 billion, from 3,049 homes, with an estimated value of $853 million a year ago.
Revenues in the Financial Services segment went up 65% to $31 million. A 44% increase in mortgage loans originated during the quarter helped raising the revenue by 65%. The mortgage capture rate for the quarter was 75% compared with 92% for the same quarter of last year.
Pulte had cash and cash equivalents of $2.6 billion as of March 31, 2010. The net-debt-to-total-capitalization ratio was 35% compared with 38% at the same period of previous year.
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