PulteGroup, Inc. (NYSE:PHM) Q4 2014 Earnings Conference Call - Final Transcript

Jan 29, 2015 • 08:30 am ET


PulteGroup, Inc. (NYSE:PHM) Q4 2014 Earnings Conference Call - Final Transcript


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Good morning, my name is Shawn, I will be your conference operator today. At this time, I would like to welcome everyone to the 2014 PulteGroup -- Fourth Quarter Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks there will be a question-and-answer session. [Operator Instructions]. Thank you.

Mr. Jim Zeumer, you may begin your conference.

Jim Zeumer

Thank you, operator, and good morning. This is Jim Zeumer, Head of Investor Relations for PulteGroup. I want to welcome you to our conference call to discuss the company's fourth quarter financial results for the three months ended December 31, 2014. Participating in today's call to discuss our results are Richard Dugas, Chairman and President and CEO; Bob O'Shaughnessy, Executive Vice President and CFO; Jim Ossowski, Vice President and Financing Controller.

Let me remind everyone that copies of this morning's earnings release along with presentation slide that accompanies today's call are posted to our corporate website at www.pultegroupinc.com. We'll also post an audio replay of today's call to our website a little later. Before we begin the discussion, I want to alert all the participants that today's presentation may include forward-looking statements about PulteGroup's future performance.

Actual results could differ materially from those suggested by our comments made today. The most significant risk factors that could affect future results are summarized as part of today's earnings release and within the accompanying presentation slides. This risk factors and other key information are detailed in our SEC filings, including our annual and quarterly reports.

That's said, now let me turn the call over to Richard Dugas. Richard?

Richard Dugas

Thank you, Jim. And good morning, everyone. Early in December, we hosted our first Analysts and Investor Day in almost a decade. Our goal in hosting the meeting was to provide a comprehensive review of our value creation strategy and the underlying initiatives which have driven its success over the past four years. The topics of our Investor Day included a review of the significant operating and financial gains we've realized as we work to deliver higher returns on invested capital.

And assessment of the opportunities that remain to realize additional gains in revenues, gross margin, overhead leverage and overall construction and asset efficiency. And finally a comprehensive analysis of our focus on capital efficiency and our related approach to capital allocation. For those of who you are unable to attend, I'd certainly encourage to review the presentation which is posted on our website.

I am extremely pleased to say that the strong financial performance we delivered in the fourth quarter and the full year demonstrates the ongoing success of our efforts. In a couple of minutes Bob will provide a detailed analysis of our fourth quarter results and gains we've realized. So let me spend my time looking at our full year 2014 progress against our value creation strategy.

On slightly lower unit volumes we generated a 4% increase in home sale revenues to $5.7 billion. The much