Annual Reports

 
Quarterly Reports

  • 10-Q (Oct 24, 2017)
  • 10-Q (Jul 25, 2017)
  • 10-Q (Apr 25, 2017)
  • 10-Q (Oct 20, 2016)
  • 10-Q (Jul 21, 2016)
  • 10-Q (Apr 21, 2016)

 
8-K

 
Other

PULTEGROUP INC 10-Q 2005

Documents found in this filing:

  1. 10-Q
  2. Ex-10.1
  3. Ex-31.(A)
  4. Ex-31.(B)
  5. Ex-32
  6.  
e10vq
Table of Contents

 
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
     
þ   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2005
OR
     
o   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-9804
PULTE HOMES, INC.
(Exact name of registrant as specified in its charter)
     
MICHIGAN   38-2766606
(State or other jurisdiction of   (I.R.S. Employer
incorporation or organization)   Identification No.)
100 Bloomfield Hills Parkway, Suite 300
Bloomfield Hills, Michigan 48304

(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (248) 647-2750
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
YES þ NO o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
YES þ NO o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
YES o NO þ
Number of shares of common stock outstanding as of October 31, 2005: 258,470,568
Website Access to Company Reports, Codes and Charters
Our internet website address is www.pulte.com. Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to section 13(a) or 15(d) of the Exchange Act are available free of charge through our website as soon as reasonably practicable after we electronically file with or furnish them to the Securities and Exchange Commission. Our code of ethics for principal officers, our corporate governance guidelines and the charters of the Audit, Compensation, and Nominating and Governance committees of our Board of Directors, are also posted on our website and are available in print upon request.
 
 

 


PULTE HOMES, INC.
INDEX
     
    Page No.
   
 
   
   
 
   
  3
 
   
  4
 
   
  5
 
   
  6
 
   
  7
 
   
  25
 
   
  36
 
   
  36
 
   
   
 
   
  37
 
   
  37
 
   
  38
 
   
  39
 Second Amended & Restated Credit Agreement
 Section 302 Certification of Chief Executive Officer
 Section 302 Certification of Chief Financial Officer
 Section 906 Certification of Chief Executive & Chief Financial Officers

2


Table of Contents

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
PULTE HOMES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
($000’s omitted)
                 
    September 30,     December 31,  
    2005     2004  
    (Unaudited)     (Note)  
 
ASSETS
               
 
               
Cash and equivalents
  $ 214,897     $ 314,634  
Unfunded settlements
    96,269       118,471  
House and land inventory
    9,379,528       7,390,791  
Land held for sale
    186,752       230,743  
Land, not owned, under option agreements
    88,243       106,380  
Residential mortgage loans available-for-sale
    554,900       697,077  
Investments in unconsolidated entities
    289,771       258,868  
Goodwill
    312,975       307,693  
Intangible assets, net
    129,267       135,454  
Other assets
    1,031,155       846,786  
 
           
 
               
Total assets
  $ 12,283,757     $ 10,406,897  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
 
               
Liabilities:
               
Accounts payable, accrued and other liabilities, including book overdrafts
of $406,853 and $304,394 in 2005 and 2004, respectively
  $ 2,147,569     $ 1,862,051  
Customer deposits
    482,932       341,050  
Collateralized short-term debt, recourse solely to applicable non-guarantor subsidiary assets
    461,740       617,415  
Income taxes
    213,048       202,557  
Senior notes and unsubordinated notes
    3,511,170       2,861,550  
 
           
 
               
Total liabilities
    6,816,459       5,884,623  
 
               
Shareholders’ equity
    5,467,298       4,522,274  
 
           
 
               
Total liabilities and shareholders’ equity
  $ 12,283,757     $ 10,406,897  
 
           
Note: The condensed consolidated balance sheet at December 31, 2004, has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
See accompanying Notes to Condensed Consolidated Financial Statements.

3


Table of Contents

PULTE HOMES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(000’s omitted, except per share data)
(Unaudited)
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2005     2004     2005     2004  
 
Revenues:
                               
Homebuilding
  $ 3,798,000     $ 2,931,974     $ 9,574,526     $ 7,428,959  
Financial services
    42,383       27,706       108,917       76,152  
Corporate
    1,120       125       3,625       1,584  
 
                       
 
                               
Total revenues
    3,841,503       2,959,805       9,687,068       7,506,695  
 
                       
 
Expenses:
                               
Homebuilding, principally cost of sales
    3,193,707       2,514,195       8,148,234       6,484,290  
Financial services
    23,922       19,092       66,614       50,806  
Corporate, net
    25,853       24,695       80,220       70,250  
 
                       
 
                               
Total expenses
    3,243,482       2,557,982       8,295,068       6,605,346  
 
                       
 
                               
Other income:
                               
Equity income
    15,681       16,146       54,317       33,752  
 
                       
Income from continuing operations before income taxes
    613,702       417,969       1,446,317       935,101  
 
                               
Income taxes
    225,983       158,845       536,513       355,330  
 
                       
 
                               
Income from continuing operations
    387,719       259,124       909,804       579,771  
 
                               
Income from discontinued operations
    7,702       10,812       7,570       9,397  
 
                       
 
                               
Net income
  $ 395,421     $ 269,936     $ 917,374     $ 589,168  
 
                       
 
                               
Per share data:
                               
Basic:
                               
Income from continuing operations
  $ 1.51     $ 1.02     $ 3.56     $ 2.31  
Income from discontinued operations
    .03       .04       .03       .04  
 
                       
 
                               
Net income
  $ 1.54     $ 1.07     $ 3.59     $ 2.34  
 
                       
 
                               
Assuming dilution:
                               
Income from continuing operations
  $ 1.47     $ .99     $ 3.46     $ 2.24  
Income from discontinued operations
    .03       .04       .03       .04  
 
                       
 
                               
Net income
  $ 1.50     $ 1.03     $ 3.49     $ 2.27  
 
                       
 
                               
Cash dividends declared
  $ .04     $ .03     $ .09     $ .08  
 
                       
 
                               
Number of shares used in calculation:
                               
Basic:
                               
Weighted-average common shares outstanding
    256,081       253,133       255,611       251,402  
Assuming dilution:
                               
 
Effect of dilutive securities
    7,827       7,837       7,201       7,780  
 
                       
 
Adjusted weighted-average common shares and
effect of dilutive securities
    263,908       260,970       262,812       259,182  
 
                       
See accompanying Notes to Condensed Consolidated Financial Statements.

4


Table of Contents

PULTE HOMES, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
($000’s omitted)
(Unaudited)
                                                 
                            Accumulated              
                            Other              
            Additional             Comprehensive              
    Common     Paid-in     Unearned     Income     Retained        
    Stock     Capital     Compensation     (Loss)     Earnings     Total  
 
Shareholders’ Equity,
December 31, 2004
  $ 2,558     $ 1,114,739     $ (44 )   $ (14,380 )   $ 3,419,401     $ 4,522,274  
Stock option exercise, including tax benefit of $28,341
    26       54,146                         54,172  
Stock-based compensation
          33,368                         33,368  
Restricted stock award
    11       (11 )                        
Restricted stock award amortization
                44                   44  
Cash dividends declared
                            (23,421 )     (23,421 )
Stock repurchases
    (10 )     (4,626 )                 (36,435 )     (41,071 )
Comprehensive income (loss):
                                               
Net income
                            917,374       917,374  
Change in fair value of derivatives
                      780             780  
Foreign currency translation adjustments
                      3,778             3,778  
 
                                             
 
                                               
Total comprehensive income
                                            921,932  
 
                                   
 
                                               
Shareholders’ Equity, September 30, 2005
  $ 2,585     $ 1,197,616     $     $ (9,822 )   $ 4,276,919     $ 5,467,298  
 
                                   
 
                                               
Shareholders’ Equity,
December 31, 2003
  $ 2,504     $ 1,014,739     $ (656 )   $ (39,142 )   $ 2,470,678     $ 3,448,123  
Stock option exercise, including tax benefit of $31,425
    44       68,393                         68,437  
Stock-based compensation
          16,834                         16,834  
Restricted stock award
    4       (4 )                        
Restricted stock award amortization
                479                   479  
Cash dividends declared
                            (19,058 )     (19,058 )
Comprehensive income (loss):
                                               
Net income
                            589,168       589,168  
Change in fair value of derivatives
                      406             406  
Foreign currency translation adjustments
                      (1,779 )           (1,779 )
 
                                             
 
                                               
Total comprehensive income
                                            587,795  
 
                                   
 
                                               
Shareholders’ Equity, September 30, 2004
  $ 2,552     $ 1,099,962     $ (177 )   $ (40,515 )   $ 3,040,788     $ 4,102,610  
 
                                   
See accompanying Notes to Condensed Consolidated Financial Statements.

5


Table of Contents

PULTE HOMES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
($000’s omitted)
(Unaudited)
                 
    For The Nine Months Ended  
    September 30,  
    2005     2004  
 
Cash flows from operating activities:
               
Net income
  $ 917,374     $ 589,168  
Adjustments to reconcile net income to net cash flows used in operating activities:
               
Amortization and depreciation
    44,810       34,041  
Stock-based compensation expense
    33,412       17,313  
Deferred income taxes
    17,972       5,607  
Undistributed earnings of affiliates
    (23,426 )     (31,252 )
Other, net
    1,423       1,994  
Increase (decrease) in cash due to:
               
Inventories
    (2,025,797 )     (2,376,800 )
Residential mortgage loans available-for-sale
    142,177       185,470  
Other assets
    (82,970 )     34,177  
Accounts payable, accrued and other liabilities
    435,859       277,547  
Income taxes
    38,832       74,899  
 
           
 
               
Net cash used in operating activities
    (500,334 )     (1,187,836 )
 
           
 
               
Cash flows from investing activities:
               
Investment in subsidiary
    (31,172 )      
Distributions from unconsolidated entities
    135,126       50,029  
Investments in unconsolidated entities
    (142,262 )     (155,982 )
Proceeds from sales of subsidiaries
    11,366        
Proceeds from sales of property and equipment
    3,526       4,946  
Capital expenditures
    (61,074 )     (54,784 )
Other, net
          503  
 
           
 
               
Net cash used in investing activities
    (84,490 )     (155,288 )
 
           
 
               
Cash flows from financing activities:
               
Proceeds from borrowings
    679,289       1,469,115  
Repayment of borrowings
    (155,735 )     (431,193 )
Issuance of common stock
    25,831       37,012  
Common stock repurchases
    (41,071 )      
Dividends paid
    (23,421 )     (19,058 )
 
           
 
               
Net cash provided by financing activities
    484,893       1,055,876  
 
           
 
               
Effect of exchange rate changes on cash and equivalents
    194       (134 )
 
           
 
               
Net decrease in cash and equivalents
    (99,737 )     (287,382 )
 
Cash and equivalents at beginning of period
    314,634       401,883  
 
           
 
               
Cash and equivalents at end of period
  $ 214,897     $ 114,501  
 
           
 
               
Supplemental disclosure of cash flow information—cash paid during the period for:
               
 
               
Interest, net of amounts capitalized
  $ 57,986     $ 35,390  
 
           
 
               
Income taxes
  $ 479,158     $ 272,832  
 
           
See accompanying Notes to Condensed Consolidated Financial Statements.

6


Table of Contents

PULTE HOMES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1.   Basis of presentation and significant accounting policies
     The consolidated financial statements include the accounts of Pulte Homes, Inc. and all of its direct and indirect subsidiaries (the “Company”) and variable interest entities in which the Company is deemed to be the primary beneficiary. The direct subsidiaries of Pulte Homes, Inc. include Pulte Diversified Companies, Inc., Del Webb Corporation (“Del Webb”) and other subsidiaries that are engaged in the homebuilding business. Pulte Diversified Companies, Inc.’s operating subsidiaries include Pulte Home Corporation, Pulte International Corporation (“International”) and other subsidiaries that are engaged in the homebuilding business. Pulte Diversified Companies, Inc.’s former thrift subsidiary, First Heights Bank, fsb (“First Heights”) is classified as a discontinued operation. The Company also has a mortgage banking company, Pulte Mortgage LLC (“Pulte Mortgage”), which is a subsidiary of Pulte Home Corporation.
     In January 2005, the Company sold all of its Argentina operations. At December 31, 2004, the Argentina operations were classified as held for sale and presented as discontinued operations in the consolidated financial statements.
     The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine-month periods ended September 30, 2005 are not necessarily indicative of the results that may be expected for the year ending December 31, 2005. These financial statements should be read in conjunction with the Company’s consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2004.
     Certain amounts previously reported in the 2004 financial statements and notes thereto were reclassified to conform to the 2005 presentation. In addition, all share and per share amounts have been restated to retroactively reflect the Company’s two-for-one stock split effected September 1, 2005.
Allowance for warranties
     Home purchasers are provided with warranties against certain building defects. The specific terms and conditions of those warranties vary geographically. Most warranties cover different aspects of the home’s construction and operating systems for a period of up to ten years. The Company estimates the costs to be incurred under these warranties and records a liability for the amount of such costs at the time product revenue is recognized. Factors that affect the Company’s warranty liability include the number of homes sold, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary.
     Changes to the Company’s allowance for warranties are as follows ($000’s omitted):
                 
    Nine Months Ended  
    September 30,  
    2005     2004  
 
Allowance for warranties at beginning of period
  $ 83,652     $ 62,091  
 
               
Warranty reserves provided
    101,297       70,694  
 
Payments and other adjustments
    (93,269 )     (64,870 )
 
           
 
               
Allowance for warranties at end of period
  $ 91,680     $ 67,915  
 
           

7


Table of Contents

PULTE HOMES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
1.   Basis of presentation and significant accounting policies (continued)
Stock-based compensation
     The Company currently has several stock-based employee compensation plans. Effective January 1, 2003, the Company adopted the preferable fair value recognition provisions of Statement of Financial Accounting Standards (“SFAS”) No. 123, “Accounting for Stock Issued to Employees.” The Company selected the prospective method of adoption as permitted by SFAS No. 148, “Accounting for Stock-Based Compensation — Transition and Disclosure.” Under the prospective method, the Company recognizes compensation expense on an accelerated basis over the vesting period based on the fair value provisions of SFAS No. 123. Grants made prior to January 1, 2003 continue to be accounted for under the recognition and measurement principles of APB Opinion No. 25, “Accounting for Stock Issued to Employees,” and related Interpretations. With the exception of certain variable stock option grants, no stock-based employee compensation cost is reflected in net income for grants made prior to January 1, 2003, as all options granted in those years had an exercise price equal to the market value of the underlying common stock on the date of grant.
     The following table illustrates the effect on net income and earnings per share if the Company had applied the fair value recognition provisions of SFAS No. 123 to all stock based employee compensation. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model.
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2005     2004     2005     2004  
 
Net income, as reported ($000’s omitted)
  $ 395,421     $ 269,936     $ 917,374     $ 589,168  
 
                               
Add: Stock-based employee compensation expense included in reported net income, net of related tax effects ($000’s omitted)
    3,401       2,803       11,417       7,721  
 
                               
Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards, net of related tax effects ($000’s omitted)
    (3,861 )     (3,499 )     (12,174 )     (11,582 )
 
                       
 
                               
Pro forma net income ($000’s omitted)
  $ 394,961     $ 269,240     $ 916,617     $ 585,307  
 
                       
 
                               
Earnings per share:
                               
Basic — as reported
  $ 1.54     $ 1.07     $ 3.59     $ 2.34  
 
                       
Basic — pro forma
  $ 1.54     $ 1.06     $ 3.59     $ 2.33  
 
                       
 
                               
Diluted — as reported
  $ 1.50     $ 1.03     $ 3.49     $ 2.27  
 
                       
Diluted — pro forma
  $ 1.50     $ 1.03     $ 3.49     $ 2.26  
 
                       
     The Company also recorded compensation expense for restricted stock awards, net of related tax effects, of $3.1 million and $9.6 million for the three and nine months ended September 30, 2005, compared with $0.9 million and $3 million for the three and nine months ended September 30, 2004. These amounts have been excluded from the reconciliation above, as they would have no impact on pro forma net income as presented.

8


Table of Contents

PULTE HOMES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
1.   Basis of presentation and significant accounting policies (continued)
Land, not owned, under option agreements
     In the ordinary course of business, the Company enters into land option agreements in order to procure land for the construction of homes in the future. Pursuant to these land option agreements, the Company will provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. Under FASB Interpretation No. 46, “Consolidation of Variable Interest Entities,” as amended by FIN 46-R issued in December 2003 (collectively referred to as “FIN 46”), if the entity holding the land under option is a variable interest entity, the Company’s deposit represents a variable interest in that entity. Creditors of the variable interest entities have no recourse against the Company.
     In applying the provisions of FIN 46, the Company evaluated all land option agreements and determined that the Company was subject to a majority of the expected losses or entitled to receive a majority of the expected residual returns under a limited number of these agreements. As the primary beneficiary under these agreements, the Company is required to consolidate variable interest entities at fair value. At September 30, 2005 and December 31, 2004, the Company classified $88.2 million and $106.4 million, respectively, as land, not owned, under option agreements on the balance sheet, representing the fair value of land under contract, including deposits of $14.3 million and $18.9 million, respectively. The corresponding liability has been classified within accounts payable, accrued and other liabilities on the balance sheet.
     Land option agreements that did not require consolidation under FIN 46 at September 30, 2005 and December 31, 2004, had a total purchase price of $8 billion and $6.3 billion, respectively. In connection with these agreements, the Company had deposits and advanced costs of $442.2 million and $311.7 million, included in other assets, as well as letters of credit and surety bonds posted in lieu of cash deposits at September 30, 2005 and December 31, 2004, respectively.
New accounting pronouncements
     On December 15, 2004, the Financial Accounting Standards Board issued SFAS No. 123(R), Share-Based Payment, which amends SFAS No. 123, Accounting for Stock-Based Compensation. SFAS No. 123(R) requires that all share-based payments to employees, including grants of employee stock options, be accounted for at fair value. The pro forma disclosures previously permitted under SFAS No. 123 no longer will be an alternative to financial statement recognition. Under SFAS No. 123(R), the Company must determine the appropriate fair value model to be used for valuing share-based payments, the amortization method for compensation cost and the transition method to be used at date of adoption. The Company previously adopted the fair-value-based method of accounting for share-based payments under SFAS No. 123 effective January 1, 2003 using the prospective method described in SFAS No. 148, Accounting for Stock-Based Compensation—Transition and Disclosure. Currently, the Company uses the Black-Scholes option pricing model to estimate the value of stock options granted to employees and is considering the lattice model. Because SFAS No. 123(R) must be applied not only to new awards but to previously granted awards that are not fully vested on the effective date, and the Company adopted SFAS No. 123 using the prospective transition method (which applied only to awards granted, modified or settled after the adoption date), compensation cost for some previously granted awards that was not recognized under SFAS No. 123 will be recognized under SFAS No. 123(R). Because these amounts are not significant, the adoption of SFAS No. 123(R) is not expected to have a material impact on the Company’s results of operations or financial position. This statement is effective for fiscal periods beginning after December 15, 2005.

9


Table of Contents

PULTE HOMES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
1.   Basis of presentation and significant accounting policies (continued)
New accounting pronouncements (continued)
     In March 2005, the SEC released Staff Accounting Bulletin (“SAB”) No. 107, Share-Based Payment. SAB No. 107 provides the SEC staff position regarding the application of SFAS No. 123(R) and contains interpretive guidance related to the interaction between SFAS No. 123(R) and certain SEC rules and regulations, as well as provides the staff’s views regarding the valuation of share-based payment arrangements for public companies. Additionally, SAB No. 107 highlights the importance of disclosures made related to the accounting for share-based payment transactions. The Company does not expect the adoption of SAB No. 107 to have a material impact on its results of operations or financial position.
2.   Segment information
     The Company’s operations are classified into two reportable business segments, Homebuilding and Financial Services, and one non-operating segment, Corporate.
     The Homebuilding segment consists of the following operations:
    Domestic Homebuilding, the Company’s core business, is engaged in the acquisition and development of land primarily for residential purposes within the continental United States and the construction of housing on such land targeted for the first-time, first and second move-up, and active adult home buyers.
 
    International Homebuilding is primarily engaged in the acquisition and development of land principally for residential purposes, and the construction of housing on such land in Mexico and Puerto Rico.
     The Financial Services segment consists principally of mortgage banking and title operations conducted through Pulte Mortgage and other subsidiaries.
     Corporate is a non-operating segment that supports the operations of the Company’s subsidiaries by acting as the internal source of financing, developing and implementing strategic initiatives centered on new business development and operating efficiencies, and providing the administrative support associated with being a publicly traded entity listed on the New York Stock Exchange.

10


Table of Contents

PULTE HOMES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
2.   Segment information (continued)
                                 
    Operating Data by Segment ($000’s omitted)  
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2005     2004     2005     2004  
 
Revenues:
                               
Homebuilding
  $ 3,798,000     $ 2,931,974     $ 9,574,526     $ 7,428,959  
Financial services
    42,383       27,706       108,917       76,152  
Corporate
    1,120       125       3,625       1,584  
 
                       
 
                               
Total revenues
    3,841,503       2,959,805       9,687,068       7,506,695  
 
                       
 
                               
Cost of sales (a):
                               
Homebuilding
    2,904,136       2,242,371       7,303,760       5,751,616  
 
                       
 
                               
Selling, general and administrative:
                               
Homebuilding
    280,109       257,298       817,482       700,339  
Financial services
    19,756       17,417       56,378       46,157  
Corporate
    12,492       12,252       35,775       32,577  
 
                       
 
                               
Total selling, general and administrative
    312,357       286,967       909,635       779,073  
 
                       
Interest:
                               
Financial services
    4,166       1,675       10,236       4,649  
Corporate
    13,333       12,306       44,488       37,511  
 
                       
 
                               
Total interest
    17,499       13,981       54,724       42,160  
 
                       
 
                               
Other (income) expense, net:
                               
Homebuilding
    9,462       14,526       26,992       32,335  
Corporate
    28       137       (43 )     162  
 
                       
 
                               
Total other (income) expense, net
    9,490       14,663       26,949       32,497  
 
                       
 
                               
Total costs and expenses
    3,243,482       2,557,982       8,295,068       6,605,346  
 
                       
 
                               
Equity income:
                               
Homebuilding
    15,099       13,466       51,967       29,346  
Financial services
    582       2,680       2,350       4,406  
 
                       
 
                               
Total equity income
    15,681       16,146       54,317       33,752  
 
                       
 
                               
Income (loss) before income taxes:
                               
Homebuilding
    619,392       431,245       1,478,259       974,015  
Financial services
    19,043       11,294       44,653       29,752  
 
Corporate
    (24,733 )     (24,570 )     (76,595 )     (68,666 )
 
                       
 
                               
Total income before income taxes
  $ 613,702     $ 417,969     $ 1,446,317     $ 935,101  
 
                       
 
(a)   Domestic homebuilding interest expense, which represents the amortization of capitalized interest, of $49.4 million and $121.1 million for the three and nine months ended September 30, 2005 and $36.2 million and $87.4 million for the three and nine months ended September 30, 2004, has been included as part of homebuilding cost of sales.

11


Table of Contents

PULTE HOMES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
2.   Segment information (continued)
                                 
    Asset Data by Segment ($000’s omitted)  
            Financial              
    Homebuilding     Services     Corporate     Total  
 
At September 30, 2005:
                               
 
                               
Inventory
  $ 9,379,528                 $ 9,379,528  
 
                             
Total assets
  $ 11,489,532       577,255       216,970     $ 12,283,757  
 
                             
 
                               
At December 31, 2004:
                               
 
                               
Inventory
  $ 7,390,791                 $ 7,390,791  
 
                             
Total assets
  $ 9,448,050       719,505       239,342     $ 10,406,897  
 
                             
3.   Inventory
Major components of the Company’s inventory were as follows ($000’s omitted):
                 
    September 30,     December 31,  
    2005     2004  
 
Homes under construction
  $ 4,108,258     $ 2,616,027  
Land under development
    4,431,128       4,089,878  
 
Land held for future development
    840,142       684,886  
 
           
 
               
Total
  $ 9,379,528     $ 7,390,791  
 
           
4.   Investments in unconsolidated entities
     The Company’s investments in unconsolidated entities totaled $289.8 million at September 30, 2005 and $258.9 million at December 31, 2004. All of these investments are accounted for under the equity method, except for the Company’s ownership interest in a Mexican mortgage banking company, as described below.
     During February 2005, 25% of the Company’s investment in the capital stock of a mortgage banking company in Mexico was redeemed for a gain of approximately $620 thousand. The remaining ownership interest of 16.66% is accounted for under the cost method.
5.   Acquisition
     During January 2005, the minority shareholders of Pulte Mexico S. de R.L. de C.V. (“Pulte Mexico”) exercised a put option under the terms of a reorganization agreement dated as of December 31, 2001, to sell their shares to the Company, the consummation of which has resulted in the Company owning 100% of Pulte Mexico. In March 2005, the Company purchased 60% of the minority interest of Pulte Mexico for approximately $18.7 million in cash. In June 2005, the Company purchased the remaining 40% of the minority interest of Pulte Mexico for approximately $12.5 million in cash. The Company has assigned approximately $17.6 million of the purchase price premium to house and land inventory, which will be amortized through cost of sales as homes are sold. The excess of the purchase price over the estimated fair values of the underlying assets acquired and liabilities assumed, of $5.3 million, was recorded as goodwill. During the three and nine months ended September 30, 2005, approximately $2.8 million and $5.5 million of purchase price premium was amortized through cost of sales.

12


Table of Contents

PULTE HOMES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
6.   Senior notes and unsubordinated notes
     In October 2005, the Company restructured and amended the 5-year unsecured revolving credit facility, increasing the borrowing availability from $1.38 billion to $1.615 billion, and extending the maturity date from September 2009 to October 2010, with pricing more favorable to the Company. The credit facility includes an uncommitted accordion feature, under which the credit facility may be increased to $2.25 billion. The Company has the capacity to issue letters of credit up to $1.125 billion. Borrowing availability is reduced by the amount of letters of credit outstanding. The credit facility contains restrictive covenants, the most restrictive of which requires the Company not to exceed a debt-to-total capitalization ratio of 60% as defined in the agreement.
     The Company’s $125 million, 7.3% unsecured senior notes were due in October 2005. The Company repaid these notes in October 2005 using its revolving credit facility and cash provided by operations.
     During May 2005, the Company amended its credit agreement to increase its committed unsecured revolving credit facility from $1.345 billion to $1.38 billion. The Company had no outstanding borrowings under this unsecured revolving credit facility at September 30, 2005.
     In February 2005, the Company sold $350 million of 5.2% senior notes, which mature on February 15, 2015, and $300 million of 6% senior notes, which mature on February 15, 2035, which are guaranteed by Pulte Homes, Inc. and certain of its 100%-owned subsidiaries. These notes are unsecured and rank equally with all of the Company’s other unsecured and unsubordinated indebtedness. Proceeds from the sale were used to repay the indebtedness of the Company’s revolving credit facility and for general corporate purposes, including continued investment in the Company’s business.
     In connection with the sale of the $300 million unsecured senior notes, as noted above, $250 million in securities were available for sale under the Company’s shelf registration statement on Form S-3. As permitted by the rules of the Securities and Exchange Commission (the “SEC”), the additional $50 million of securities were to be registered through a supplemental registration statement filed at the time of sale pursuant to Rule 462(b) of the Securities Act of 1933, as amended (the “Securities Act”). Due to an administrative error, the supplemental registration statement was not filed with the SEC. Consequently, $50 million of the notes were sold without registration under the Securities Act, which may give rise to certain claims by purchasers of the notes under Section 12(a)(1) of the Securities Act. The Company would vigorously defend against any such claims and believes that the aggregate impact of any such claims, if successful, would be immaterial. The Company further believes it would be impossible to determine which notes have been affected by its administrative error.
7.   Discontinued operations
     The Company recorded non-cash, after-tax gains of $7.8 million and $10.8 million during the third quarter of 2005 and 2004, respectively, related to the favorable resolution of certain tax matters in connection with its former thrift operation, which was discontinued in 1994.
8.   Shareholders’ equity
     Pursuant to the $100 million stock repurchase program authorized by the Company’s Board of Directors in October 2002, the Company repurchased 461,000 shares and 1,031,000 shares of Pulte Homes, Inc. common stock in open-market transactions or otherwise, for a total of $20 million and $41.1 million, for the three and nine months ended September 30, 2005, respectively. As of September 30, 2005, the Company had remaining authorization to purchase common stock aggregating $21.7 million.

13


Table of Contents

PULTE HOMES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
8.   Shareholders’ equity (continued)
     In October 2005, the Company’s Board of Directors approved an increase to the Company’s stock repurchase authorization of up to $100 million in open-market transactions or otherwise. After approval of the increase, the Company had $121.7 million available for stock repurchases.
     In July 2005, the Company’s Board of Directors declared a two-for-one stock split effected in the form of a 100 percent stock dividend. The additional shares of common stock were distributed on September 1, 2005, to the shareholders of record as of August 15, 2005. All share and per share amounts have been restated to retroactively reflect the stock split.
Accumulated other comprehensive income (loss)
     The accumulated balances related to each component of other comprehensive income (loss) are as follows ($000’s omitted):
                 
    September 30,     December 31,  
    2005     2004  
 
Foreign currency translation adjustments:
               
Mexico
  $ (10,740 )   $ (14,518 )
 
Change in fair value of derivatives, net of income taxes of $562 in 2005 and $84 in 2004
    918       138  
 
           
 
               
 
  $ (9,822 )   $ (14,380 )
 
           
9.   Supplemental Guarantor information
     At September 30, 2005, Pulte Homes, Inc. had the following outstanding senior note obligations: (1) $125 million, 7.3%, due 2005, (2) $400 million, 4.875%, due 2009, (3) $200 million, 8.125%, due 2011, (4) $499 million, 7.875%, due 2011, (5) $300 million, 6.25%, due 2013, (6) $500 million, 5.25%, due 2014, (7) $350 million, 5.2%, due 2015, (8) $150 million, 7.625%, due 2017, (9) $300 million, 7.875%, due 2032, (10) $400 million, 6.375%, due 2033, and (11) $300 million, 6%, due 2035. Such obligations to pay principal, premium, if any, and interest are guaranteed jointly and severally on a senior basis by Pulte Homes, Inc.’s 100%-owned Domestic Homebuilding subsidiaries (collectively, the Guarantors). Such guarantees are full and unconditional.
     Supplemental consolidating financial information of the Company, specifically including such information for the Guarantors, is presented below. Investments in subsidiaries are presented using the equity method of accounting, except as described in Note 4. Separate financial statements of the Guarantors are not provided as the consolidating financial information contained herein provides a more meaningful disclosure to allow investors to determine the nature of the assets held by and the operations of the combined groups.

14


Table of Contents

PULTE HOMES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
9.   Supplemental Guarantor information (continued)
CONDENSED CONSOLIDATING BALANCE SHEET
September 30, 2005
($000’s omitted)
                                         
    Unconsolidated              
 
    Pulte     Guarantor     Non-Guarantor     Eliminating     Consolidated  
    Homes, Inc.     Subsidiaries     Subsidiaries     Entries     Pulte Homes, Inc.  
 
ASSETS
                                       
Cash and equivalents
  $     $ 81,597     $ 133,300     $     $ 214,897  
Unfunded settlements
          144,082       (47,813 )           96,269  
House and land inventory
          9,166,560       212,968             9,379,528  
Land held for sale
          186,038       714             186,752  
Land, not owned, under option agreements
          88,243                   88,243  
Residential mortgage loans available-for-sale
                554,900             554,900  
Investments in unconsolidated entities
    1,448       254,516       33,807             289,771  
Goodwill
          306,993       5,982             312,975  
Intangible assets, net
          129,267                   129,267  
Other assets
    50,283       866,589       114,283             1,031,155  
Investment in subsidiaries
    10,253,394       77,776       1,684,871       (12,016,041 )      
 
                             
 
                                       
 
  $ 10,305,125     $ 11,301,661     $ 2,693,012     $ (12,016,041 )   $ 12,283,757  
 
                             
 
                                       
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                       
Liabilities:
                                       
Accounts payable, accrued and other liabilities
  $ 147,901     $ 2,164,301     $ 318,299     $     $ 2,630,501  
Collateralized short-term debt, recourse solely to applicable non-guarantor subsidiary assets
                461,740             461,740  
Income taxes
    213,606             (558 )           213,048  
Senior notes and unsubordinated notes
    3,511,170                         3,511,170  
Advances (receivable) payable — subsidiaries
    965,150       (1,140,205 )     175,055              
 
                             
 
                                       
Total liabilities
    4,837,827       1,024,096       954,536             6,816,459  
 
                                       
Shareholders’ equity
    5,467,298       10,277,565       1,738,476       (12,016,041 )     5,467,298  
 
                             
 
                                       
 
  $ 10,305,125     $ 11,301,661     $ 2,693,012     $ (12,016,041 )   $ 12,283,757  
 
                             

15


Table of Contents

PULTE HOMES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
9. Supplemental Guarantor information (continued)
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2004
($000’s omitted)
                                         
    Unconsolidated                
 
    Pulte     Guarantor     Non-Guarantor     Eliminating     Consolidated Pulte  
    Homes, Inc.     Subsidiaries     Subsidiaries     Entries     Homes, Inc.  
 
ASSETS
                                       
Cash and equivalents
  $       $ 185,375     $ 129,259     $     $ 314,634  
Unfunded settlements
          158,795       (40,324 )           118,471  
House and land inventory
          7,224,777       166,014             7,390,791  
Land held for sale
          230,086       657             230,743  
Land, not owned, under option agreements
          106,380                   106,380  
Residential mortgage loans available-for-sale
                697,077             697,077  
Investments in unconsolidated entities
    44       222,358       36,466             258,868  
Goodwill
          306,993       700             307,693  
Intangible assets, net
          135,454                   135,454  
Other assets
    64,807       663,967       118,012             846,786  
 
Investment in subsidiaries
    8,725,758       75,162       2,201,365       (11,002,285 )      
 
                             
 
                                       
 
  $ 8,790,609     $ 9,309,347     $ 3,309,226     $ (11,002,285 )   $ 10,406,897  
 
                             
 
                                       
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                       
Liabilities:
                                       
Accounts payable, accrued and other liabilities
  $ 154,958     $ 1,758,644     $ 289,499     $     $ 2,203,101  
Collateralized short-term debt, recourse solely to applicable non-guarantor subsidiary assets
                617,415             617,415  
Income taxes
    203,806             (1,249 )           202,557  
Senior notes and unsubordinated notes
    2,861,550                         2,861,550  
Advances (receivable) payable — subsidiaries
    1,048,021       (1,239,413 )     191,392              
 
                             
 
                                       
Total liabilities
    4,268,335       519,231       1,097,057             5,884,623  
 
                                       
Shareholders’ equity
    4,522,274       8,790,116       2,212,169       (11,002,285 )     4,522,274  
 
                             
 
                                       
 
  $ 8,790,609     $ 9,309,347     $ 3,309,226     $ (11,002,285 )   $ 10,406,897  
 
                             

16


Table of Contents

PULTE HOMES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
9. Supplemental Guarantor information (continued)
CONSOLIDATING STATEMENT OF OPERATIONS
For the three months ended September 30, 2005
($000’s omitted)
                                         
    Unconsolidated                
                                    Consolidated  
    Pulte     Guarantor     Non-Guarantor     Eliminating     Pulte  
    Homes, Inc.     Subsidiaries     Subsidiaries     Entries     Homes, Inc.  
 
Revenues:
                                       
Homebuilding
  $     $ 3,750,669     $ 47,331     $     $ 3,798,000  
Financial services
          7,361       35,022             42,383  
Corporate
    75       900       145             1,120  
 
                             
Total revenues
    75       3,758,930       82,498             3,841,503  
 
                             
 
                                       
Expenses:
                                       
Homebuilding:
                                       
Cost of sales
          2,863,617       40,519             2,904,136  
Selling, general and administrative and other expense
    4,140       281,530       3,901             289,571  
Financial services
    536       2,014       21,372             23,922  
Corporate, net
    32,446       (3,931 )     (2,662 )           25,853  
Intercompany interest
    36,368       (36,368 )                    
 
                             
Total expenses
    73,490       3,106,862       63,130             3,243,482  
 
                             
 
                                       
Other Income:
                                       
Equity income
          13,732       1,949             15,681  
 
                             
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries
    (73,415 )     665,800       21,317             613,702  
Income taxes (benefit)
    (27,953 )     245,114       8,822             225,983  
 
                             
 
                                       
Income (loss) from continuing operations before equity in income of subsidiaries
    (45,462 )     420,686       12,495               387,719  
Income (loss) from discontinued operations
    7,691             11             7,702  
 
                             
Income (loss) before equity in income of subsidiaries
    (37,771 )     420,686       12,506             395,421  
 
                             
Equity in income (loss) of subsidiaries:
                                       
Continuing operations
    433,181       8,514       144,127       (585,822 )      
Discontinued operations
    11                   (11 )      
 
                             
 
 
    433,192       8,514       144,127       (585,833 )      
 
                             
 
Net income
  $ 395,421     $ 429,200     $ 156,633     $ (585,833 )   $ 395,421  
 
                             

17


Table of Contents

PULTE HOMES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
9. Supplemental Guarantor information (continued)
CONSOLIDATING STATEMENT OF OPERATIONS
For the nine months ended September 30, 2005
($000’s omitted)
                                         
    Unconsolidated                
                                    Consolidated  
    Pulte     Guarantor     Non-Guarantor     Eliminating     Pulte  
    Homes, Inc.     Subsidiaries     Subsidiaries     Entries     Homes, Inc.  
 
Revenues:
                                       
Homebuilding
  $     $ 9,450,393     $ 124,133     $     $ 9,574,526  
Financial services
          19,504       89,413             108,917  
Corporate
    145       3,155       325             3,625  
 
                             
Total revenues
    145       9,473,052       213,871             9,687,068  
 
                             
 
                                       
Expenses:
                                       
Homebuilding:
                                       
Cost of sales
          7,199,724       104,036             7,303,760  
Selling, general and administrative and other expense
    12,983       814,788       16,703             844,474  
Financial services
    1,575       6,199       58,840             66,614  
Corporate, net
    98,721       (10,975 )     (7,526 )           80,220  
Intercompany interest
    123,657       (123,657 )                  
 
                             
Total expenses
    236,936       7,886,079       172,053             8,295,068  
 
                             
 
                                       
Other Income:
                                       
Equity income
          48,383       5,934             54,317  
 
                             
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries
    (236,791 )     1,635,356       47,752             1,446,317  
Income taxes (benefit)
    (89,082 )     606,790       18,805             536,513  
 
                             
Income (loss) from continuing operations before equity in income of subsidiaries
    (147,709 )     1,028,566       28,947             909,804  
Income (loss) from discontinued operations
    7,585             (15 )           7,570  
 
                             
Income (loss) before equity in income of subsidiaries
    (140,124 )     1,028,566       28,932             917,374  
 
                             
Equity in income (loss) of subsidiaries:
                                       
Continuing operations
    1,057,513       19,539       305,418       (1,382,470 )      
Discontinued operations
    (15 )                 15        
 
                             
 
 
    1,057,498       19,539       305,418       (1,382,455 )      
 
                             
 
Net income
  $ 917,374     $ 1,048,105     $ 334,350     $ (1,382,455 )   $ 917,374  
 
                             

18


Table of Contents

PULTE HOMES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
9. Supplemental Guarantor information (continued)
CONSOLIDATING STATEMENT OF OPERATIONS
For the three months ended September 30, 2004
($000’s omitted)
                                         
    Unconsolidated                
                                    Consolidated  
    Pulte     Guarantor     Non-Guarantor     Eliminating     Pulte  
    Homes, Inc.     Subsidiaries     Subsidiaries     Entries     Homes, Inc.  
 
Revenues:
                                       
Homebuilding
  $     $ 2,885,121     $ 46,853     $     $ 2,931,974  
Financial services
          5,300       22,406             27,706  
Corporate
    3       122                   125  
 
                             
Total revenues
    3       2,890,543       69,259             2,959,805  
 
                             
 
                                       
Expenses:
                                       
Homebuilding:
                                       
Cost of sales
          2,204,210       38,161             2,242,371  
Selling, general and administrative and other expense
    3,586       260,165       8,073             271,824  
Financial services
    260       1,403       17,429             19,092  
Corporate, net
    23,533       1,650       (488 )           24,695  
Intercompany interest
    24,048       (24,048 )                  
 
                             
 
                                       
Total expenses
    51,427       2,443,380       63,175             2,557,982  
 
                             
 
                                       
Other Income:
                                       
Equity income
          12,533       3,613             16,146  
 
                             
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries
    (51,424 )     459,696       9,697               417,969  
Income taxes (benefit)
    (18,495 )     174,542       2,798             158,845  
 
                             
Income (loss) from continuing operations before equity in income of subsidiaries
    (32,929 )     285,154       6,899             259,124  
Income from discontinued operations
    10,786             26             10,812  
 
                             
Income (loss) before equity in income of subsidiaries
    (22,143 )     285,154       6,925             269,936  
 
                             
Equity in income of subsidiaries:
                                       
Continuing operations
    292,053       4,417       107,877       (404,347 )      
Discontinued operations
    26                   (26 )      
 
                             
 
 
    292,079       4,417       107,877       (404,373 )      
 
                             
 
Net income
  $ 269,936     $ 289,571     $ 114,802     $ (404,373 )   $ 269,936  
 
                             

19


Table of Contents

PULTE HOMES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
9. Supplemental Guarantor information (continued)
CONSOLIDATING STATEMENT OF OPERATIONS
For the nine months ended September 30, 2004
($000’s omitted)
                                         
    Unconsolidated                
                                    Consolidated  
    Pulte     Guarantor     Non-Guarantor     Eliminating     Pulte  
    Homes, Inc.     Subsidiaries     Subsidiaries     Entries     Homes, Inc.  
 
Revenues:
                                       
Homebuilding
  $     $ 7,301,276     $ 127,683     $     $ 7,428,959  
Financial services
          14,071       62,081             76,152  
Corporate
    92       1,200       292             1,584  
 
                             
Total revenues
    92       7,316,547       190,056             7,506,695  
 
                             
 
                                       
Expenses:
                                       
Homebuilding:
                                       
Cost of sales
          5,647,985       103,631             5,751,616  
Selling, general and administrative and other expense
    11,172       691,475       30,027             732,674  
Financial services
    757       3,998       46,051             50,806  
Corporate, net
    66,432       4,391       (573 )           70,250  
Intercompany interest
    77,800       (77,800 )                  
 
                             
 
                                       
Total expenses
    156,161       6,270,049       179,136             6,605,346  
 
                             
 
                                       
Other Income:
                                       
Equity income
          26,460       7,292             33,752  
 
                             
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries
    (156,069 )     1,072,958       18,212               935,101  
Income taxes (benefit)
    (58,628 )     407,735       6,223             355,330  
 
                             
Income (loss) from continuing operations before equity in income of subsidiaries
    (97,441 )     665,223       11,989             579,771  
Income from discontinued operations
    10,472             (1,075 )           9,397  
 
                             
Income (loss) before equity in income of subsidiaries
    (86,969 )     665,223       10,914             589,168  
 
                             
Equity in income of subsidiaries:
                                       
Continuing operations
    677,212       11,932       218,030       (907,174 )      
Discontinued operations
    (1,075 )                 1,075        
 
                             
 
 
    676,137       11,932       218,030       (906,099 )      
 
                             
 
Net income
  $ 589,168     $ 677,155     $ 228,944     $ (906,099 )   $ 589,168  
 
                             

20


Table of Contents

PULTE HOMES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
9. Supplemental Guarantor information (continued)
CONSOLIDATING STATEMENT OF CASH FLOWS
For the nine months ended September 30, 2005
($000’s omitted)
                                         
    Unconsolidated              
                Consolidated  
    Pulte     Guarantor     Non-Guarantor     Eliminating     Pulte  
    Homes, Inc.     Subsidiaries     Subsidiaries     Entries     Homes, Inc.  
 
Cash flows from operating activities:
                                       
Net income
  $ 917,374     $ 1,048,105     $ 334,350     $ (1,382,455 )   $ 917,374  
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities:
                                       
Equity in income of subsidiaries
    (1,057,498 )     (19,539 )     (305,418 )     1,382,455        
Amortization and depreciation
          38,694       6,116             44,810  
Stock-based compensation expense
    33,412                         33,412  
Deferred income taxes
    23,309       33       (5,370 )           17,972  
Undistributed earnings of affiliates
          (18,059 )     (5,367 )           (23,426 )
Other, net
    1,063       239       121             1,423  
Increase (decrease) in cash due to:
                                       
Inventory
          (2,001,872 )     (23,925 )           (2,025,797 )
Residential mortgage loans
available-for-sale
                142,177             142,177  
Other assets
    (10,190 )     (76,852 )     4,072             (82,970 )
Accounts payable, accrued and other liabilities
    (6,780 )     396,441       46,198             435,859  
Income taxes
    (218,038 )     245,078       11,792             38,832  
 
                             
Net cash provided by (used in) operating activities
    (317,348 )     (387,732 )     204,746             (500,334 )
 
                             
 
                                       
Cash flows from investing activities:
                                       
Dividends received from subsidiaries
    1,362       20,000             (21,362 )      
Investment in subsidiary
    (467,217 )     (1,770 )     (370,172 )     807,987       (31,172 )
Distributions from unconsolidated subsidiaries
          133,451       1,675             135,126  
Investments in unconsolidated subsidiaries
          (142,262 )                 (142,262 )
Proceeds from sales of subsidiaries
                11,366             11,366  
Proceeds from sales of property and equipment
          3,526                   3,526  
Capital expenditures
          (52,459 )     (8,615 )           (61,074 )
 
                             
Net cash provided by (used in) investing activities
    (465,855 )     (39,514 )     (365,746 )     786,625       (84,490 )
 
                             

21


Table of Contents

PULTE HOMES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
9. Supplemental Guarantor information (continued)
CONSOLIDATING STATEMENT OF CASH FLOWS (continued)
For the nine months ended September 30, 2005
($000’s omitted)
                                         
    Unconsolidated              
                Consolidated  
    Pulte     Guarantor     Non-Guarantor     Eliminating     Pulte  
    Homes, Inc.     Subsidiaries     Subsidiaries     Entries     Homes, Inc.  
 
Cash flows from financing activities:
                                       
Proceeds from borrowings
    648,557       30,732                   679,289  
Repayment of borrowings
                (155,735 )           (155,735 )
Capital contributions from parent
          438,941       369,046       (807,987 )      
Advances (to) from affiliates
    173,307       (144,843 )     (28,464 )            
Issuance of common stock
    25,831                         25,831  
Common stock repurchases
    (41,071 )                       (41,071 )
Dividends paid
    (23,421 )     (1,362 )     (20,000 )     21,362       (23,421 )
 
                             
Net cash provided by (used in) financing activities
    783,203       323,468       164,847       (786,625 )     484,893  
 
                             
Effect of exchange rate changes on cash and equivalents
                194             194  
 
                             
Net increase (decrease) in cash and equivalents
          (103,778 )     4,041             (99,737 )
 
Cash and equivalents at beginning of period
          185,375       129,259             314,634  
 
                             
 
Cash and equivalents at end of period
  $     $ 81,597     $ 133,300     $     $ 214,897  
 
                             

22


Table of Contents

PULTE HOMES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
9. Supplemental Guarantor information (continued)
CONSOLIDATING STATEMENT OF CASH FLOWS
For the nine months ended September 30, 2004
($000’s omitted)
                                         
    Unconsolidated                
                                    Consolidated  
    Pulte     Guarantor     Non-Guarantor     Eliminating     Pulte  
    Homes, Inc.     Subsidiaries     Subsidiaries     Entries     Homes, Inc.  
 
Cash flows from operating activities:
                                       
Net income
  $ 589,168     $ 677,155     $ 228,944     $ (906,099 )   $ 589,168  
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities:
                                       
Equity in income of subsidiaries
    (676,137 )     (11,932 )     (218,030 )     906,099        
Amortization and depreciation
          28,879       5,162             34,041  
Stock-based compensation expense
    17,313                         17,313  
Deferred income taxes
    10,362             (4,755 )           5,607  
Undistributed earnings of affiliates
          (23,960 )     (7,292 )           (31,252 )
Other, net
    911       (50 )     1,133             1,994  
Increase (decrease) in cash due to:
                                       
Inventory
          (2,362,048 )     (14,752 )           (2,376,800 )
Residential mortgage loans
available-for-sale
                185,470             185,470  
Other assets
    45,627       (35,198 )     23,748             34,177  
Accounts payable, accrued and other liabilities
    (11,269 )     273,521       15,295             277,547  
Income taxes
    (237,149 )     309,924       2,124             74,899  
 
                             
Net cash provided by (used in) operating activities
    (261,174 )     (1,143,709 )     217,047             (1,187,836 )
 
                             
Cash flows from investing activities:
                                       
Dividends received from subsidiaries
    8,526       16,000             (24,526 )      
Investment in subsidiary
    (103,000 )     (1,320 )     (128,774 )     233,094        
Distributions from unconsolidated subsidiaries
          47,249       2,780             50,029  
Investments in unconsolidated subsidiaries
          (155,495 )     (487 )           (155,982 )
Proceeds from sales of property and equipment
          4,922       24             4,946  
Capital expenditures
          (44,851 )     (9,933 )           (54,784 )
Other, net
                503             503  
 
                             
Net cash provided by (used in) investing activities
    (94,474 )     (133,495 )     (135,887 )     208,568       (155,288 )
 
                             

23


Table of Contents

PULTE HOMES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
9. Supplemental Guarantor information (continued)
CONSOLIDATING STATEMENT OF CASH FLOWS (continued)
For the nine months ended September 30, 2004
($000’s omitted)
                                         
    Unconsolidated              
                                Consolidated  
    Pulte     Guarantor     Non-Guarantor     Eliminating     Pulte  
    Homes, Inc.     Subsidiaries     Subsidiaries     Entries     Homes, Inc.  
 
Cash flows from financing activities:
                                       
Proceeds from borrowings
    1,465,915             3,200             1,469,115  
Repayment of borrowings
    (112,000 )     (126,698 )     (192,495 )           (431,193 )
Capital contributions from parent
          128,273       104,821       (233,094 )      
Advances (to) from affiliates
    (1,019,170 )     1,069,030       (49,860 )            
Issuance of common stock
    37,012                         37,012  
Common stock repurchases
                               
Dividends paid
    (19,058 )     (8,526 )     (16,000 )     24,526       (19,058 )
 
                             
Net cash provided by (used in) financing activities
    352,699       1,062,079       (150,334 )     (208,568 )     1,055,876  
 
                             
Effect of exchange rate changes on cash and equivalents
                (134 )           (134 )
 
                             
Net (increase) decrease in cash and equivalents
    (2,949 )     (215,125 )     (69,308 )           (287,382 )
 
Cash and equivalents at beginning of period
    2,949       305,356       93,578             401,883  
 
                             
 
Cash and equivalents at end of period
  $     $ 90,231     $ 24,270     $     $ 114,501  
 
                             

24


Table of Contents

Item 2. Management’s Discussion And Analysis Of Financial Condition And Results Of Operations
Overview
     A summary of our operating results by business segment for the three-month and nine-month periods ended September 30, 2005 and 2004 is as follows ($000’s omitted):
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2005     2004     2005     2004  
 
Pre-tax income (loss):
                               
Homebuilding operations
  $ 619,392     $ 431,245     $ 1,478,259     $ 974,015  
Financial services operations
    19,043       11,294       44,653       29,752  
Corporate
    (24,733 )     (24,570 )     (76,595 )     (68,666 )
 
                       
Pre-tax income from continuing operations
    613,702       417,969       1,446,317       935,101  
Income taxes
    225,983       158,845       536,513       355,330  
 
                       
Income from continuing operations
    387,719       259,124       909,804       579,771  
Income from discontinued operations
    7,702       10,812       7,570       9,397  
 
                       
Net income
  $ 395,421     $ 269,936     $ 917,374     $ 589,168  
 
                       
Per share data — assuming dilution:
                               
Income from continuing operations
  $ 1.47     $ .99     $ 3.46     $ 2.24  
 
Income from discontinued operations
    .03       .04       .03       .04  
 
                       
 
Net income
  $ 1.50     $ 1.03     $ 3.49     $ 2.27  
 
                       
     A comparison of pre-tax income for the three and nine months ended September 30, 2005 and 2004 is as follows:
    Continued strong demand for new homes in many of our markets, market share gains, geographic and product mix shifts, average unit selling price increases and benefits from leveraging construction costs throughout the operations drove pre-tax income of our homebuilding business segment to increase 44% and 52% for the three and nine months ended September 30, 2005, respectively, compared with the prior year periods. Domestic unit settlements increased 21% and 19%, respectively, for the three and nine months ended September 30, 2005. Domestic average unit selling prices increased 9% and 10% for the three and nine months ended September 30, 2005, compared with the prior year periods. Domestic Homebuilding settlement gross margin percentages increased 30 basis points to 23.8% for the three months ended September 30, 2005 and 140 basis points to 24.0% for the nine months ended September 30, 2005, compared with the prior year periods.
 
    Pre-tax income of our financial services business segment increased 69% and 50% for the three and nine months ended September 30, 2005, respectively, compared with the prior year periods, as a result of the volume related increase in originations and the favorable interest rate environment experienced during the third quarter of 2005. The capture rates were 88.8% and 88.5% for the three and nine months ended September 30, 2005, respectively, and 87.3% for both the three and nine months ended September 30, 2004, respectively.
 
    Pre-tax losses associated with our non-operating Corporate segment increased 1% and 12% for the three and nine months ended September 30, 2005, respectively, compared with the prior year periods. While expenses for the three-month period remained comparable with the prior year, increases related to the nine-month period resulted from higher net interest expense associated with increased debt funding to support business growth in 2005 and beyond, in addition to higher compensation related expenses.
 
    We recorded non-cash, after-tax gains of $7.8 million and $10.8 million during the third quarter of 2005 and 2004, respectively, related to the favorable resolution of certain tax matters in connection with our former thrift operation, which was discontinued in 1994.

25


Table of Contents

Homebuilding Operations
     Our Homebuilding segment consists of the following operations:
    Domestic Homebuilding — We conduct our Domestic Homebuilding operations in 54 markets located throughout 28 states. Domestic Homebuilding offers a broad product line to meet the needs of the first-time, first and second move-up, and active adult homebuyers.
 
    International Homebuilding — We conduct our International Homebuilding operations through subsidiaries of Pulte International Corporation (International) in Mexico and Puerto Rico. International operations focus on meeting the demand of first-time buyers and middle-to-upper income consumer groups. We are currently in the process of evaluating various long-term strategic alternatives with regard to all of our International operations.
     Certain operating data relating to our homebuilding operations are as follows ($000’s omitted):
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2005     2004     2005     2004  
 
Homebuilding settlement revenues:
                               
Domestic
  $ 3,725,537     $ 2,816,060     $ 9,343,544     $ 7,153,379  
International
    47,331       46,853       124,133       127,683  
 
                       
Total
  $ 3,772,868     $ 2,862,913     $ 9,467,677     $ 7,281,062  
 
                       
 
                               
Homebuilding settlements units:
                               
Domestic
    11,747       9,669       29,960       25,188  
 
International
    1,833       1,898       4,638       4,978  
 
                       
 
Total
    13,580       11,567       34,598       30,166  
 
                       
 
Note:   Homebuilding settlement revenues of affiliates, not included in the table above, for the three and nine months ended September 30, 2005, were $22,520 and $59,636, respectively, compared with $15,968 and $46,134 for the three and nine months ended September 30, 2004, respectively. Homebuilding unit settlements of affiliates not included in the table above, for the three and nine months ended September 30, 2005 were 64 and 175, respectively, compared with 54 and 168 for the three and nine months ended September 30, 2004, respectively.
Domestic Homebuilding
     The Domestic Homebuilding business unit represents our core business. Our operations are conducted in 54 markets located throughout 28 states, presented geographically as follows:
     
Northeast:
  Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Virginia
 
   
Southeast:
  Florida, Georgia, North Carolina, South Carolina, Tennessee
 
   
Midwest:
  Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Ohio
 
   
Central:
  Colorado, New Mexico, Texas
 
   
West:
  Arizona, California, Nevada

26


Table of Contents

Homebuilding Operations (continued)
     The following table presents selected unit information for our Domestic Homebuilding operations:
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2005     2004     2005     2004  
 
Unit settlements:
                               
Northeast
    1,003       869       2,409       2,083  
Southeast
    3,427       2,293       8,710       6,056  
Midwest
    1,638       1,447       3,686       3,383  
Central
    1,726       1,531       4,190       3,719  
 
West
    3,953       3,529       10,965       9,947  
 
                       
 
 
    11,747       9,669       29,960       25,188  
 
                       
 
                               
Net new orders — units:
                               
Northeast
    1,066       849       3,322       2,419  
Southeast
    3,284       2,859       10,718       8,054  
Midwest
    1,670       1,315       4,899       4,251  
Central
    2,185       1,518       6,096       4,699  
 
West
    3,857       3,568       12,675       12,213  
 
                       
 
 
    12,062       10,109       37,710       31,636  
 
                       
 
Net new orders — dollars ($000’s omitted):
  $ 3,994,000     $ 2,995,000     $ 12,233,000     $ 9,451,000  
 
                       
 
                               
Unit backlog:
                               
Northeast
                    2,396       1,871  
Southeast
                    7,313       5,724  
Midwest
                    2,490       2,269  
Central
                    2,983       2,136  
 
West
                    8,484       8,400  
 
                           
 
 
                    23,666       20,400  
 
                           
 
Backlog at September 30 — dollars ($000’s omitted):
                  $ 8,043,000     $ 6,445,000  
 
                           
     Continued strong demand for new homes, an increase in the number of active selling communities, and market share expansion drove increases in net new orders, unit settlements and unit backlog, particularly in the Northeast, Southeast and Central regions. For both the three and nine months ended September 30, 2005, unit net new orders increased 19% to a record 12,062 and 37,710 units, respectively, compared with the same periods in 2004. Net new order growth in the Midwest increased 27% for the three months ended September 30, 2005 compared with the same period in the prior year, despite challenging market conditions in this region. The dollar value of net new orders increased 33% and 29%, respectively, for the three and nine months ended September 30, 2005, compared with the same periods in 2004. For the quarter ended September 30, 2005, we had 662 active selling communities, an increase of 9% from the same period in the prior year. Unit settlements also set a record for the respective three and nine months ended September 30, 2005, at 11,747 and 29,960 units, representing an increase of 21% and 19% over the same periods in 2004. The average selling price for homes closed increased 9% and 10% to $317,000 and $312,000 for the respective three and nine months ended September 30, 2005 compared with the same periods in 2004. Changes in average selling price reflect a number of factors, including changes in market selling prices and the mix of product closed during each period. Ending backlog, which represents orders for homes that have not yet closed, grew to a record 23,666 units at September 30, 2005. The dollar value of backlog was up 25% to $8 billion.

27


Table of Contents

Homebuilding Operations (continued)
Domestic Homebuilding (continued)
     The following table presents markets that represent 10% or more of total Domestic Homebuilding unit new orders, unit settlements, and settlement revenues for the three and nine months ended September 30, 2005 and 2004:
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2005     2004     2005     2004  
 
Net new orders:
                               
Phoenix
    *       17%       *       17%  
 
                               
Unit settlements:
                               
Phoenix
    11%       14%       13%       15%  
Las Vegas
    *       *       *       10%  
 
                               
Settlement revenues:
                               
Phoenix
    10%       12%       12%       13%  
Las Vegas
    *       13%       *       14%  
 
*   Represents less than 10%.
     At September 30, 2005 and December 31, 2004, our Domestic Homebuilding operations controlled approximately 369,300 and 343,400 lots, respectively. Approximately 169,000 and 158,000 lots were owned, and approximately 129,700 and 125,800 lots were under option agreements approved for purchase at September 30, 2005 and December 31, 2004, respectively. In addition, there were approximately 70,600 and 59,600 lots under option agreements, pending approval, at September 30, 2005 and December 31, 2004, respectively. We believe that the strength of our land supply, and our entitlement expertise, will enable us to continue opening new communities during the course of 2005 and beyond.
     The total purchase price related to approved land under option for use by our Domestic Homebuilding operations at future dates approximated $5.8 billion at September 30, 2005. In addition, total purchase price related to land under option pending approval was valued at $2.3 billion at September 30, 2005. Land option agreements, which may be cancelled at our discretion, may extend over several years and are secured by deposits and advanced costs totaling $452.7 million, which are generally non-refundable.
     The following table presents a summary of pre-tax income for our Domestic Homebuilding operations for the three and nine months ended September 30, 2005 and 2004 ($000’s omitted):
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2005     2004     2005     2004  
 
Home sale revenue (settlements)
  $ 3,725,537     $ 2,816,060     $ 9,343,544     $ 7,153,379  
Land sale revenue
    25,132       69,061       106,849       147,897  
Home cost of sales (a)
    (2,839,913 )     (2,154,902 )     (7,101,734 )     (5,536,997 )
Land cost of sales
    (23,704 )     (49,308 )     (97,990 )     (110,988 )
Selling, general and administrative expense
    (272,158 )     (249,730 )     (793,916 )     (678,982 )
Equity income
    13,150       11,964       46,759       25,176  
 
Other income (expense), net
    (10,028 )     (13,496 )     (27,411 )     (29,229 )
 
                       
 
Pre-tax income
  $ 618,016     $ 429,649     $ 1,476,101     $ 970,256  
 
                       
 
Average sales price
  $ 317     $ 291     $ 312     $ 284  
 
                       
 
(a)   Domestic homebuilding interest expense, which represents the amortization of capitalized interest, of $49.4 million and $121.1 million for the three and nine months ended September 30, 2005 and $36.2 million and $87.4 million for the three and nine months ended September 30, 2004, has been included as part of homebuilding cost of sales.

28


Table of Contents

Homebuilding Operations (continued)
Domestic Homebuilding (continued)
     Domestic Homebuilding gross profit margins from home settlements increased to 23.8% and 24% for the three and nine months ended September 30, 2005, compared with 23.5% and 22.6%, respectively, for the same periods in the prior year. This increase is primarily attributable to favorable home pricing and product and geographic mix, as well as our ongoing initiatives to improve operational efficiencies, partially offset by increases in material and labor costs.
     We consider land acquisition and entitlement among our core competencies. We acquire land primarily for the construction of our homes for sale to homebuyers. We will often sell select parcels of land within or adjacent to our communities to retail and commercial establishments. On occasion, we also will sell lots within our communities to other homebuilders. Gross profits from land sales for the three and nine months ended September 30, 2005 were $1.4 million and $8.9 million, respectively, compared with $19.8 million and $36.9 million, respectively, for the three and nine months ended September 30, 2004. Revenues and their related gains/losses may vary significantly between periods, depending on the timing of land sales. We continue to evaluate our existing land positions to ensure the most effective use of capital. As of September 30, 2005, we had $186.8 million of land held for sale.
     Selling, general and administrative expenses as a percentage of home settlement revenues declined to 7.3% for the three months ended September 30, 2005 compared with 8.9% for the same period in the prior year. For the nine months ended September 30, 2005, selling, general and administrative expenses as a percentage of home settlement revenues declined to 8.5% from 9.5% for the same period in the prior year. This improvement can be attributed to increased selling prices and better overhead leverage from increased volume compared with the prior year period.
     The increase in equity income for the third quarter and nine months of 2005, compared with the prior year periods, was primarily due to increased income from our joint venture which supplies and installs basic building components and operating systems, and a Nevada-based land development joint venture, related to the sale of commercial and residential properties.

29


Table of Contents

Homebuilding Operations (continued)
International Homebuilding
     Our International Homebuilding operations are primarily conducted through subsidiaries of International in Mexico and Puerto Rico. We are currently in the process of evaluating various long-term strategic alternatives with regard to all of our International operations.
     The following table presents selected financial data for our International Homebuilding operations for the three and nine months ended September 30, 2005 and 2004 ($000’s omitted):
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2005     2004     2005     2004  
 
Revenues
  $ 47,331     $ 46,853     $ 124,133     $ 127,683  
Cost of sales
    (40,519 )     (38,161 )     (104,036 )     (103,631 )
Selling, general and administrative expense
    (7,951 )     (7,568 )     (23,566 )     (21,357 )
Other income (expense), net
    566       (616 )     378       (2,031 )
Minority interest
          (414 )     41       (1,075 )
 
Equity in income of joint ventures
    1,949       1,502       5,208       4,170  
 
                       
 
Pre-tax income
  $ 1,376     $ 1,596     $ 2,158     $ 3,759  
 
                       
 
                               
Unit settlements
    1,833       1,898       4,638       4,978  
 
                       
 
Note:   Homebuilding settlement revenues of affiliates, not included in the table above, for the three and nine months ended September 30, 2005, were $22,520 and $59,636, respectively, compared with $15,968 and $46,134 for the three and nine months ended September 30, 2004, respectively. Homebuilding unit settlements of affiliates not included in the table above, for the three and nine months ended September 30, 2005 were 64 and 175, respectively, compared with 54 and 168 for the three and nine months ended September 30, 2004, respectively.
     During January 2005, the minority shareholders of Pulte Mexico S. de R.L. de C.V. (“Pulte Mexico”) exercised a put option under the terms of a reorganization agreement dated as of December 31, 2001, to sell their shares to us, the consummation of which would result in our owning 100% of Pulte Mexico. In March 2005, we purchased 60% of the minority interest of Pulte Mexico for approximately $18.7 million in cash. In June 2005, we purchased the remaining 40% minority interest, for approximately $12.5 million in cash. We assigned approximately $17.6 million of the purchase price premium to house and land inventory, which will be amortized through cost of sales as homes are sold. The excess of the purchase price over the estimated fair values of the underlying assets acquired and liabilities assumed, of $5.3 million, was recorded as goodwill. During the three and nine months ended September 30, 2005, approximately $2.8 million and $5.5 million of purchase price premium was amortized through cost of sales.
     International revenues for the three months ended September 30, 2005 were comparable with the same period in 2004. For the three months ended September 30, 2005, international unit settlements decreased 3% compared to the same period in 2004. For the nine months ended September 30, 2005, international revenues and unit settlements decreased 3% and 7%, respectively, compared with the nine months ended September 30, 2004. Gross margins decreased approximately 420 basis points to 14.4% for the three months ended September 30, 2005 and 260 basis points to 16.2% for the nine months ended September 30, 2005, as compared with the prior year periods, due to the amortization of premium resulting from the purchase of the minority interest in Pulte Mexico discussed above. Selling, general and administrative expenses as a percent of settlement revenues increased to 16.8% from 16.2% for the three months ended September 30, 2005 and to 19.0% from 16.7% for the nine months ended September 30, 2005 due to increased marketing expenses, new community start-up expenses, and non-recurring administrative costs.
     Our operations in Mexico are affected by fluctuations in the currency rate for this country. Transaction gains and losses for the three and nine months ended September 30, 2005 and 2004, included in other income (expense), net, were not significant. During the three and nine months ended September 30, 2005, we recorded foreign currency translation gains of $400 thousand and $3.1 million, respectively, as a component of accumulated other comprehensive income on the balance sheet. At September 30, 2005, our investments in Puerto Rico and Mexico, net of accumulated foreign currency translation adjustments, approximated $29.7 million and $116.1 million, respectively. At December 31, 2004, our investment in Puerto Rico and Mexico, net of accumulated foreign currency translation adjustments, approximated $28.8 million, and $72.2 million, respectively.

30


Table of Contents

Financial Services Operations
     We conduct our financial services business, which includes mortgage and title operations, through Pulte Mortgage and other subsidiaries. Pre-tax income of our financial services operations for the three and nine months ended September 30, 2005 was $19 million and $44.7 million, respectively, compared with $11.3 million and $29.8 million, respectively, for the prior year periods. Loan originations for the three and nine months ended September 30, 2005 increased 24% and 22% to 10,985 and 28,022 mortgages, respectively, compared with the prior year periods.
     The following table presents mortgage origination data for our Financial Services operations:
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2005     2004     2005     2004  
 
Total originations:
                               
Loans
    10,985       8,846       28,022       22,916  
 
                       
Principal ($000’s omitted)
  $ 2,163,100     $ 1,705,900     $ 5,481,700     $ 4,354,400  
 
                       
 
                               
Originations for Pulte customers:
                               
Loans
    10,920       8,213       27,370       20,685  
 
                       
Principal ($000’s omitted)
  $ 2,146,100     $ 1,610,900     $ 5,364,700     $ 4,003,600  
 
                       
     Mortgage origination unit and principal volume for the three months ended September 30, 2005 increased 24% and 27%, respectively, over the same period in 2004. For the nine months ended September 30, 2005, mortgage origination unit and principal volume increased 22% and 26%, respectively, over the same period in 2004. The growth is attributable to volume increases experienced in our homebuilding business and an increase in the average loan size. Our Domestic Homebuilding customers continue to account for the majority of total loan production, representing 99% and 98% of total Pulte Mortgage unit production for the three and nine months ended September 30, 2005, respectively, compared with 93% and 90% for the same periods in 2004. Refinancings accounted for approximately 1% of total unit originations for the three and nine months ended September 30, 2005, respectively, compared with 2% and 3% for the same periods in the prior year. At September 30, 2005, loan application backlog increased to $5.4 billion as compared with $4 billion at September 30, 2004.
     Adjustable rate mortgages (ARMs), which generally have a lower profit per loan than fixed rate products, represented 42% of total funded origination dollars and 37% of total funded origination units for the three months ended September 30, 2005, compared with 45% and 44% in the prior year period, respectively. For the nine months ended September 30, 2005, ARMs represented 47% of total funded origination dollars and 41% of total funded origination units compared with 40% and 38% in the prior year period, respectively. Interest only mortgages, a component of ARMs, represented 67% of ARMs origination dollars and 57% of ARMs origination units for the three months ended September 30, 2005, compared with 41% and 30% in the prior year period, respectively. For the nine months ended September 30, 2005, interest only mortgages represented 64% of ARMs origination dollars and 53% of ARMs origination units, compared with 34% and 25% in the prior year period, respectively.
     Income from our title operations increased to $5.8 million and $14.5 million for the three and nine months ended September 30, 2005, respectively, from $4.4 million and $11.2 million for the same periods in 2004, respectively. Our minority interest in Su Casita, a Mexican mortgage banking company, contributed income from operations of approximately $700 thousand for the nine months ended September 30, 2005. During February 2005, 25% of our investment in the capital stock of Su Casita was redeemed for a gain of approximately $620 thousand. Our remaining interest of 16.66% is accounted for under the cost method of accounting and therefore no income was recorded for the three months ended September 30, 2005. Income for the three and nine months ended September 2004, was $1.3 million and $2.3 million, respectively. We are currently in the process of evaluating various long-term strategic alternatives with regard to all of our International operations.
     We hedge portions of our forecasted cash flow from sales of closed mortgage loans with derivative financial instruments to minimize the impact of changes in interest rates. We do not use derivative financial instruments for trading purposes.

31


Table of Contents

Corporate
     Corporate is a non-operating segment that supports the operations of our subsidiaries by acting as the internal source of financing, developing and implementing strategic initiatives centered on new business development and operating efficiencies, and providing the administrative support associated with being a publicly traded entity listed on the New York Stock Exchange. As a result, the corporate segment’s operating results will vary from quarter to quarter as these strategic initiatives evolve.
     The following table presents results of operations for this segment for the three and nine months ended September 30, 2005 and 2004 ($000’s omitted):
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2005     2004     2005     2004  
 
Net interest expense
  $ 12,213     $ 12,181     $ 40,863     $ 35,927  
 
Other corporate expenses, net
    12,520       12,389       35,732       32,739  
 
                       
 
Loss before income taxes
  $ 24,733     $ 24,570     $ 76,595     $ 68,666  
 
                       
     Interest expense, net of interest capitalized into inventory, remained consistent for the quarter ended September 30, 2005 with the same period in the prior year. Interest expense, net of interest capitalized into inventory, increased $4.9 million for the nine months ended September 30, 2005. This is a result of the continued increase in debt levels necessary to support our growth. For the three-month period, higher interest expense related to increased debt funding was offset by the reversal of interest from the favorable resolution of certain tax matters. Interest incurred, excluding interest incurred by our financial services operations, for the three and nine months ended September 30, 2005, was approximately $57.5 million and $173.2 million, and for the three and nine months ended September 30, 2004 was approximately $55.3 million and $154.5 million, respectively.
     Interest capitalized into inventory is charged to home cost of sales based on the cyclical timing of our unit settlements, over a period that approximates the average life cycle of our communities. Information related to Corporate interest capitalized into inventory is as follows ($000’s omitted):
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2005     2004     2005     2004  
 
Interest in inventory at beginning of period
  $ 236,418     $ 223,482     $ 223,591     $ 200,584  
Interest capitalized
    44,187       42,968       128,661       116,986  
 
Interest expensed
    (49,431 )     (36,241 )     (121,078 )     (87,361 )
 
                       
 
Interest in inventory at end of period
  $ 231,174     $ 230,209     $ 231,174     $ 230,209  
 
                       

32


Table of Contents

Liquidity and Capital Resources
     We finance our homebuilding land acquisitions, development and construction activities from internally generated funds and existing credit agreements.
     At September 30, 2005, we had cash and equivalents of $214.9 million and $3.5 billion of senior and unsubordinated notes outstanding. Other financing included limited recourse collateralized financing totaling $68.5 million. Sources of our working capital include our cash and equivalents, our committed unsecured revolving credit facility (see below) and Pulte Mortgage’s $940 million committed credit arrangements.
     In October 2005, we restructured and amended our 5-year unsecured revolving credit facility, increasing the borrowing availability from $1.38 billion to $1.615 billion, and extending the maturity date from September 2009 to October 2010, with pricing more favorable to us. The credit facility includes an uncommitted accordion feature, under which the credit facility may be increased to $2.25 billion. We have the capacity to issue letters of credit up to $1.125 billion. Borrowing availability is reduced by the amount of letters of credit outstanding. The credit facility contains restrictive covenants, the most restrictive of which requires that we do not exceed a debt-to-total capitalization ratio of 60% as defined in the agreement.
     During May 2005, we amended the credit agreement to increase our committed unsecured revolving credit facility from $1.345 billion to $1.38 billion. We had no outstanding borrowings under this unsecured revolving credit facility at September 30, 2005.
     Our debt-to-total capitalization, excluding our collateralized debt, was approximately 39.1% at September 30, 2005, and approximately 37.6% net of cash and equivalents. We routinely monitor current operational requirements and financial market conditions to evaluate the use of available financing sources, including securities offerings.
     Pulte Mortgage provides mortgage financing for many of our home sales and uses its own funds and borrowings made available pursuant to various committed and uncommitted credit arrangements. At September 30, 2005, Pulte Mortgage had committed credit arrangements of $940 million comprised of a $390 million bank revolving credit facility and a $550 million annual asset-backed commercial paper program.
     Pursuant to the $100 million stock repurchase program authorized by our Board of Directors in October 2002, the Company repurchased 461,000 shares and 1,031,000 shares of Pulte Homes, Inc. common stock in open-market transactions or otherwise, for a total of $20 million and $41.1 million, for the three and nine months ended September 30, 2005, respectively. As of September 30, 2005, we had remaining authorization to purchase common stock aggregating $21.7 million under this stock repurchase program.
     In October 2005, our Board of Directors approved an increase to our stock repurchase authorization of up to $100 million in open-market transactions or otherwise. After approval of the increase, we had $121.7 million available for stock repurchases.
     In July 2005, our Board of Directors declared a two-for-one stock split effected in the form of a 100 percent stock dividend. The additional shares of common stock were distributed on September 1, 2005, to the shareholders of record as of August 15, 2005. All share and per share amounts have been restated to retroactively reflect the stock split.
     In July 2005, our Board of Directors approved an increase in our quarterly dividend of $.03 per share, from $.05 to $.08 on a pre-split basis, an increase of 60%. The quarterly dividend of $.04 per share on a post-split basis was payable October 3, 2005 to shareholders of record as of September 26, 2005.
     Our income tax liability and related effective tax rate are affected by a number of factors. At September 30, 2005, our effective tax rate was 37.1% compared to 38% at September 30, 2004. The reduction in the effective tax rate for 2005 was principally due to the new manufacturing deduction established by the American Jobs Creation Act of 2004. We anticipate that our effective tax rate for 2005 will be approximately 37%.
     Our net cash used in operating activities for the nine months ended September 30, 2005 was $500.3 million, compared with $1.2 billion for the nine months ended September 30, 2004. Net income for both years was offset primarily by significant investments in land necessary to support the continued growth of the business.

33


Table of Contents

Liquidity and Capital Resources (continued)
     Cash used in investing activities was $84.5 million for the nine months ended September 30, 2005, compared with $155.3 million for the nine months ended September 30, 2004. During the nine months ended September 30, 2005, we invested approximately $31.2 million to purchase our minority shareholders’ interest in Pulte Mexico. In addition, we invested approximately $20.6 million in new joint ventures that develop and/or sell land within the United States. Also, we made $121.7 million of additional capital contributions to and received $135.1 million in distributions from our unconsolidated joint ventures for the nine months ended September 30, 2005. Further, we incurred approximately $61.1 million in capital expenditures to support the growth of our business.
     Net cash provided by financing activities totaled $484.9 million for the nine months ended September 30, 2005. Cash inflows from financing activities for the nine months ended September 30, 2005 are primarily attributed to the issuance of senior notes. Cash outflows from financing activities for the nine months ended September 30, 2005 primarily relate to net repayment of debt from Pulte Mortgage’s committed credit arrangements, dividends paid and stock repurchases.
     We have repaid our $125 million, 7.3% unsecured senior notes, which were due in October 2005, using both our revolving credit facility and cash provided by operations.
     During January 2005, the minority shareholders of Pulte Mexico exercised a put option under the terms of a reorganization agreement dated as of December 31, 2001, to sell their shares to us, the consummation of which resulted in our owning 100% of Pulte Mexico. In March 2005, we purchased 60% of the minority interest of Pulte Mexico for approximately $18.7 million in cash. In June 2005, we purchased the remaining 40% minority interest, for approximately $12.5 million in cash. We are currently in the process of evaluating various long-term strategic alternatives with regard to all of our International operations.
     In February 2005, we sold $350 million of 5.2% senior notes, which mature on February 15, 2015, and $300 million of 6% senior notes, which mature on February 15, 2035, which are guaranteed by Pulte Homes, Inc. and certain of its 100%-owned subsidiaries. These notes are unsecured and rank equally with all of our other unsecured and unsubordinated indebtedness. Proceeds from the sale were used to repay the indebtedness of our revolving credit facility and for general corporate purposes, including continued investment in our business.
     In connection with the sale of the $300 million unsecured senior notes, as discussed above, $250 million in securities were available for sale under our shelf registration statement on Form S-3. As permitted by the rules of the Securities and Exchange Commission (the “SEC”), the additional $50 million of securities were to be registered through a supplemental registration statement filed at the time of sale pursuant to Rule 462(b) of the Securities Act of 1933, as amended (the “Securities Act”). Due to an administrative error, the supplemental registration statement was not filed with the SEC. Consequently, $50 million of the notes were sold without registration under the Securities Act, which may give rise to certain claims by purchasers of the notes under Section 12(a)(1) of the Securities Act. We would vigorously defend against any such claims and believe that the aggregate impact of such claims, if successful, would be immaterial. We also believe it would be impossible to determine which notes have been affected by our administrative error.
Inflation
     We, and the homebuilding industry in general, may be adversely affected during periods of high inflation because of higher land and construction costs. Inflation also increases our financing, labor and material costs. In addition, higher mortgage interest rates significantly affect the affordability of permanent mortgage financing to prospective homebuyers. We attempt to pass to our customers any increases in our costs through increased sales prices. To date, inflation has not had a material adverse effect on our results of operations. However, there is no assurance that inflation will not have a material adverse impact on our future results of operations.

34


Table of Contents

New Accounting Pronouncements
     On December 15, 2004, the Financial Accounting Standards Board issued SFAS No. 123(R), Share-Based Payment, which amends SFAS No. 123, Accounting for Stock-Based Compensation. SFAS No. 123(R) requires that all share-based payments to employees, including grants of employee stock options, be accounted for at fair value. The pro forma disclosures previously permitted under SFAS No. 123 no longer will be an alternative to financial statement recognition. Under SFAS No. 123(R), we must determine the appropriate fair value model to be used for valuing share-based payments, the amortization method for compensation cost and the transition method to be used at date of adoption. We previously adopted the fair-value-based method of accounting for share-based payments under SFAS No. 123 effective January 1, 2003 using the prospective method described in SFAS No. 148, Accounting for Stock-Based Compensation—Transition and Disclosure. Currently, we use the Black-Scholes option pricing model to estimate the value of stock options granted to employees and are considering the lattice model. Because SFAS No. 123(R) must be applied not only to new awards but to previously granted awards that are not fully vested on the effective date, and we adopted SFAS No. 123 using the prospective transition method (which applied only to awards granted, modified or settled after the adoption date), compensation cost for some previously granted awards that was not recognized under SFAS No. 123 will be recognized under SFAS No. 123(R). Because these amounts are not significant, the adoption of SFAS No. 123(R) is not expected to have a material impact on our results of operations or financial position. This statement is effective for fiscal periods beginning after December 15, 2005.
     In March 2005, the SEC released Staff Accounting Bulletin (“SAB”) No. 107, Share-Based Payment. SAB No. 107 provides the SEC staff position regarding the application of SFAS No. 123(R) and contains interpretive guidance related to the interaction between SFAS No. 123(R) and certain SEC rules and regulations, as well as provides the staff’s views regarding the valuation of share-based payment arrangements for public companies. Additionally, SAB No. 107 highlights the importance of disclosures made related to the accounting for share-based payment transactions. We do not expect the adoption of SAB No. 107 to have a material impact on our results of operations or financial position.
Critical Accounting Policies and Estimates
     There have been no significant changes to our critical accounting policies and estimates during the nine months ended September 30, 2005 compared with those disclosed in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our annual report on Form 10-K for the year ended December 31, 2004.

35


Table of Contents

Item 3. Quantitative and Qualitative Disclosures About Market Risk
Quantitative disclosure:
     We are subject to interest rate risk on our rate-sensitive financing to the extent long-term rates decline. The following table sets forth, as of September 30, 2005, our rate-sensitive financing obligations, principal cash flows by scheduled maturity, weighted-average interest rates and estimated fair market values ($000’s omitted).
                                                                 
    As of September 30, 2005 for the  
    years ended December 31,  
                                            There-             Fair  
    2005     2006     2007     2008     2009     after     Total     Value  
 
Rate sensitive liabilities:
                                                               
 
                                                               
Fixed interest rate debt:
                                                               
 
                                                               
Senior notes
  $ 125,000     $     $     $     $ 400,000     $ 2,998,563     $ 3,523,563     $ 3,584,426  
Average interest rate
    7.3 %                       4.88 %     6.58 %     6.41 %        
 
                                                               
Limited recourse collateralized financing
  $ 41,117     $ 15,896     $ 5,247     $ 4,923     $ 373     $ 934     $ 68,490     $ 68,490  
Average interest rate
    1.71 %     1.87 %     1.24 %     1.37 %     7.25 %     7.25 %     1.79 %        
Qualitative disclosure:
     This information can be found in Item 7A., Quantitative and Qualitative Disclosures about Market Risk, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2004, and is incorporated herein by reference.
Special Notes Concerning Forward-Looking Statements
     As a cautionary note, except for the historical information contained herein, certain matters discussed in Item 2., Management’s Discussion and Analysis of Financial Condition and Results of Operations and Item 3., Quantitative and Qualitative Disclosures About Market Risk, are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among other things, (1) general economic and business conditions; (2) interest rate changes and the availability of mortgage financing; (3) the relative stability of debt and equity markets; (4) competition; (5) the availability and cost of land and other raw materials used in our homebuilding operations; (6) the availability and cost of insurance covering risks associated with our business; (7) shortages and the cost of labor; (8) weather related slowdowns; (9) slow growth initiatives and/or local building moratoria; (10) governmental regulation, including the interpretation of tax, labor and environmental laws; (11) changes in consumer confidence and preferences; (12) required accounting changes; (13) terrorist acts and other acts of war; and (14) other factors over which we have little or no control.
Item 4. Controls and Procedures
     Management, including our President & Chief Executive Officer and Executive Vice President & Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2005. Based upon, and as of the date of that evaluation, our President & Chief Executive Officer and Executive Vice President & Chief Financial Officer concluded that the disclosure controls and procedures were effective, in all material respects, to ensure that information required to be disclosed in the reports we file and submit under the Exchange Act is recorded, processed, summarized and reported as and when required.
     There has been no change in our internal control over financial reporting during the quarter ended September 30, 2005 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

36


Table of Contents

PART II. OTHER INFORMATION
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Issuer Purchases of Equity Securities (1)
                                 
                            (d)  
                            Approximate dollar  
                    (c)     value of shares  
                    Total number of     that may yet be  
    (a)     (b)     shares purchased     purchased under  
    Total Number     Average     as part of publicly     the plans or  
    of shares     price paid     announced plans     programs  
    purchased (2)     per share (2)     or programs     ($000’s omitted)  
 
August 1, 2005 through August 31, 2005
    461,000     $ 43.34       461,000     $ 21,667 (1)
 
 
                       
Total
    461,000 (3)   $ 43.34       461,000          
 
                         
 
(1)   In October 2002, our Board of Directors authorized the repurchase of $100 million of Pulte Homes, Inc. common stock in open-market transactions or otherwise. As of September 30, 2005 the Company had remaining authorization to purchase common stock aggregating $21,667 million under this program.
 
    In October 2005, our Board of Directors approved an increase to the stock repurchase authorization of $100 million of Pulte Homes, Inc. common stock in open-market transactions or otherwise. After approval of the increase, we had $121.7 million available for stock repurchases. This increase in share repurchase authorization has not been reflected in column (d) above, as it occurred subsequent to September 30, 2005.
(2)   Share information has been adjusted to reflect the Company’s two-for-one stock split, effected in the form of a 100 percent stock dividend, which was distributed on September 1, 2005, to shareholders of record as of August 15, 2005.
 
(3)   All shares were purchased pursuant to the publicly announced programs.
Item 5. Other Information
On October 31, 2005, Pulte Homes, Inc. (the “Company”) restructured and amended its 5-year unsecured revolving credit facility (the “Credit Facility”), increasing the borrowing availability from $1.38 billion to $1.615 billion, and extending the maturity date from September 2009 to October 2010, with pricing more favorable to the Company. The credit facility includes an uncommitted accordion feature, under which the credit facility may be increased to $2.25 billion. The Company has the capacity to issue letters of credit up to $1.125 billion. Borrowing availability is reduced by the amount of letters of credit outstanding. The credit facility contains restrictive covenants, the most restrictive of which requires the Company not to exceed a debt-to-total capitalization ratio of 60% as defined in the agreement.
J.P. Morgan Securities, Inc. served as Lead Arranger and Sole Bookrunner for the Credit Facility on the Company’s behalf, and JP Morgan Chase Bank, N.A., served as Administrative Agent. The Credit Facility was broadly syndicated among 36 participants.
A copy of the restructured and amended Credit Facility is filed herewith as Exhibit 10.1.

37


Table of Contents

Item 6. Exhibits
(a) Exhibits
Exhibit Number and Description
10.1   Second Amended and Restated Credit Agreement among Pulte Homes, Inc., as Borrower, The Lenders Identified Herein, JP Morgan Chase Bank, NA, as Administrative Agent, and Citigroup Global Markets, Inc., as Syndication Agent and Barclays Bank PLC, BNP Paribas, Calyon New York Branch, Comerica Bank, Deutsche Bank Trust Company Americas, Merrill Lynch Bank USA, The Royal Bank of Scotland PLC, Suntrust Bank, UBS Loan Finance LLC, and Wachovia Bank, National Association, as Documentation Agents and The Bank of Tokyo-Mitsubishi, Ltd., Chicago Branch, Bank of America, N.A., Guaranty Bank, Lloyds TSB Bank PLC, Mizuho Corporate Bank, Ltd., and PNC Bank, National Association as Managing Agents and LaSalle Bank National Association, Washington Mutual Bank, AmSouth Bank, Fifth Third Bank, A Michigan Bank Corporation, and U.S. Bank, National Association, as Co-Agents dated as of October 31, 2005.
 
31(a)   Rule 13a-14(a) Certification by Richard J. Dugas, Jr., President and Chief Executive Officer
 
31(b)   Rule 13a-14(a) Certification by Roger A. Cregg, Executive Vice President and Chief Financial Officer
 
32   Certification Pursuant to 18 United States Code § 1350 and Rule 13a-14(b) of the Securities Exchange Act of 1934

38


Table of Contents

SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
         
  PULTE HOMES, INC.
 
 
  /s/ Roger A. Cregg    
     
  Roger A. Cregg
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer and duly authorized officer) 
 
 
         
     
  /s/ Vincent J. Frees    
     
  Vincent J. Frees
Vice President and Controller
(Principal Accounting Officer and duly authorized officer)
 
 
  Date: November 4, 2005  
 

39


Table of Contents

Exhibits Index
Exhibit No.   Description
     
10.1   Second Amended and Restated Credit Agreement among Pulte Homes, Inc., as Borrower, The Lenders Identified Herein, JP Morgan Chase Bank, NA, as Administrative Agent, and Citigroup Global Markets, Inc., as Syndication Agent and Barclays Bank PLC, BNP Paribas, Calyon New York Branch, Comerica Bank, Deutsche Bank Trust Company Americas, Merrill Lynch Bank USA, The Royal Bank of Scotland PLC, Suntrust Bank, UBS Loan Finance LLC, and Wachovia Bank, National Association, as Documentation Agents and The Bank of Tokyo-Mitsubishi, Ltd., Chicago Branch, Bank of America, N.A., Guaranty Bank, Lloyds TSB Bank PLC, Mizuho Corporate Bank, Ltd., and PNC Bank, National Association as Managing Agents and LaSalle Bank National Association, Washington Mutual Bank, AmSouth Bank, Fifth Third Bank, A Michigan Bank Corporation, and U.S. Bank, National Association, as Co-Agents dated as of October 31, 2005.
 
31(a)   Rule 13a-14(a) Certification by Richard J. Dugas, Jr., President and Chief Executive Officer
 
31(b)   Rule 13a-14(a) Certification by Roger A. Cregg, Executive Vice President and Chief Financial Officer
 
32   Certification Pursuant to 18 United States Code § 1350 and Rule 13a-14(b) of the Securities Exchange Act of 1934

 

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki