Fourth Quarter Highlights
* Net income increased 69% to $230.7 million
* Diluted earnings per share increased 59% to $1.46
* Consolidated revenue increased 32% to $2.9 billion
* Net sales orders increased 21% to $2.4 billion (10,114 homes)
Fiscal Year 2003 Highlights
* Net income increased 55% to $626.0 million
* Diluted earnings per share increased 43% to $4.10
* Consolidated revenue increased 30% to $8.7 billion
* Sales contract backlog increased 29% to $3.7 billion (15,488 homes)
* Stockholders' equity increased 34% to $3.0 billion
* Homebuilding debt to total capitalization (net of cash) improved to
40.0% from 51.3%
* Cash flows from operations of more than $400 million and "dry
powder" of $1.3 billion
ARLINGTON, Texas, Nov. 12 /PRNewswire-FirstCall/ -- D.R. Horton, Inc.
(NYSE: DHI) Wednesday (November 12, 2003), reported the highest quarterly
earnings in Company history. Net income for the fourth quarter increased 69%
to $230.7 million ($1.46 per diluted share), from $136.4 million ($0.92 per
diluted share) for the same quarter of fiscal 2002. Fourth quarter
consolidated revenue increased 32% to $2.9 billion, from $2.2 billion in the
fourth quarter of fiscal 2002. Homebuilding revenue for the quarter increased
32% to $2.8 billion (11,527 homes closed), compared to $2.1 billion (9,554
homes closed) for the year ago quarter.
For the fiscal year ended September 30, 2003, net income increased 55% to
$626.0 million ($4.10 per diluted share), compared to $404.7 million ($2.87
per diluted share) for fiscal 2002. Consolidated revenue for the year
increased 30% to $8.7 billion, from $6.7 billion for fiscal 2002.
Homebuilding revenue for the year increased 29% to $8.6 billion (35,934 homes
closed), compared to $6.6 billion (29,761 homes closed) for fiscal 2002.
The Company's backlog of homes under contract at September 30, 2003 was a
fiscal year-end record $3.7 billion (15,488 homes), up 29% from $2.8 billion
(12,697 homes) at September 30, 2002. As previously reported, net sales
orders for the fourth quarter were $2.4 billion (10,114 homes), an increase of
21% compared to $2.0 billion (8,665 homes) for the same quarter of fiscal
2002. Net sales orders for fiscal year 2003 increased 33% to $9.2 billion
(38,725 homes), compared to $6.9 billion (31,491 homes) for fiscal 2002.
The Company expects diluted earnings per share for the quarter ended
December 31, 2003 to be in the range of $0.90 to $0.95 (approximately
158.0 million diluted shares). The Company expects diluted earnings per share
for fiscal year 2004 to be in the range of $4.50 to $4.60 (approximately
158.0 million diluted shares), based on projected revenues of approximately
$9.5 to $9.7 billion (between 41,000 and 42,000 homes closed).
The Company will host a conference call Thursday, November 13th at 10:00
a.m. EST. The dial-in number is 800-374-9096. The call will also be webcast
from www.drhorton.com on the "Investor Relations" page.
Donald R. Horton, Chairman of the Board, said, "We are pleased to conclude
our 26th year of consecutive growth in earnings and revenues with a very
strong balance sheet. Our shareholders' equity grew 34% to $3.0 billion,
which is an incredible number compared to the $3,000 of beginning equity in
1978. Our $3.0 billion equity base contributed to our record low homebuilding
net debt to cap of 40%. Strong earnings and controlled internal growth
generated positive free cash flow this year, and we finished the year with
$583 million in cash and $709 million available on our revolver, for a total
of approximately $1.3 billion in 'dry powder.'
"We ended the year on an extremely positive note with a 21% organic
increase in our fourth quarter sales and strong sales performances in all of
our states. Our double-digit sales increase and our record $3.7 billion
backlog position us to make fiscal year 2004 our 27th year of record earnings
and revenues."
Founded in 1978, D.R. Horton, Inc. is engaged in the construction and sale
of high quality homes designed principally for the entry-level and first time
move-up markets. D.R. Horton currently builds and sells homes under the D.R.
Horton, Cambridge, Continental, Dietz-Crane, Dobson, Emerald, Melody, Milburn,
Schuler, Stafford, Torrey, Trimark, and Western Pacific names in 20 states and
47 markets, with a geographic presence in the Midwest, Mid-Atlantic,
Southeast, Southwest and Western regions of the United States. The Company
also provides mortgage financing and title services for homebuyers through its
mortgage and title subsidiaries.
Portions of this document may constitute "forward-looking statements" as
defined by the Private Securities Litigation Reform Act of 1995. Although
D.R. Horton believes any such statements are based on reasonable assumptions,
there is no assurance that actual outcomes will not be materially different.
All forward-looking statements are based upon information available to D.R.
Horton on the date this release was issued. D.R. Horton does not undertake
any obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. Forward-
looking statements in this release relate to the Company's expected earnings
per share for the quarter ending December 31, 2003 and the 2004 fiscal year,
expected fiscal year 2004 revenues and the expectation of another record year
in fiscal year 2004 due to the Company's double digit sales increase and
record $3.7 billion sales contract backlog. Factors that may cause the actual
results to be materially different from the future results expressed by the
forward-looking statements include, but are not limited to: changes in
general economic, real estate and business conditions; changes in interest
rates and the availability of mortgage financing; governmental regulations and
environmental matters; changes in income tax laws affecting mortgage interest
deductibility; the Company's substantial leverage; competitive conditions
within the industry; the availability of capital to the Company on favorable
terms; the Company's ability to integrate acquisitions and successfully effect
the cost savings, operating efficiencies and revenue enhancements that are
believed available and otherwise to successfully effect its other growth
strategies. Additional information about issues that could lead to material
changes in performance is contained in D.R. Horton's annual report on Form
10-K and most recent quarterly reports on Form 10-Q, which are filed with the
Securities and Exchange Commission.
WEBSITE ADDRESS: www.DRHORTON.com
D.R. HORTON, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended Fiscal year ended
September 30, September 30,
2002 2003 2002 2003
(In millions, except per share amounts)
Homebuilding:
Revenues
Home sales $2,119.3 $2,781.0 $6,529.6 $8,334.1
Land/lot sales 15.2 28.9 95.6 218.0
2,134.5 2,809.9 6,625.2 8,552.1
Cost of sales
Home sales 1,708.3 2,191.6 5,282.1 6,621.2
Land/lot sales 12.3 22.4 82.3 184.6
1,720.6 2,214.0 5,364.4 6,805.8
Gross profit
Home sales 411.0 589.4 1,247.5 1,712.9
Land/lot sales 2.9 6.5 13.3 33.4
413.9 595.9 1,260.8 1,746.3
Selling, general and
administrative expense 201.8 242.6 646.8 817.0
Interest expense 0.8 3.1 6.0 5.2
Other expense 13.0 6.4 16.9 9.4
Operating income from
homebuilding 198.3 343.8 591.1 914.7
Financial services:
Revenues 35.9 52.3 113.6 176.0
Selling, general and
administrative expense 19.5 28.7 67.8 98.3
Interest expense 2.0 2.2 5.5 7.4
Other (income) (5.5) (6.9) (16.1) (23.2)
Operating income from
financial services 19.9 28.3 56.4 93.5
Income before income taxes 218.2 372.1 647.5 1,008.2
Provision for income taxes 81.8 141.4 242.8 382.2
Net income $136.4 $230.7 $404.7 $626.0
Amounts per share - basic:
Net Income $0.93 $1.49 $3.01 $4.21
Weighted average number
of shares 146.5 155.2 134.3 148.5
Amounts per share - diluted:
Net Income $0.92 $1.46 $2.87 $4.10
Weighted average number
of shares 148.8 157.8 141.6 153.0
Other Consolidated Financial Data
Interest amortized to home
and land/lot cost of sales $46.6 $74.7 $136.1 $219.4
Depreciation and amortization $14.2 $11.8 $32.8 $41.8
Interest incurred $59.2 $62.2 $204.3 $246.9
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
As of September 30,
2002 2003
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $92.1 $542.4
Inventories:
Finished homes and construction in progress 2,035.2 2,464.6
Residential lots - developed and under
development 2,297.6 2,506.2
Land held for development 10.3 6.5
Consolidated land inventories not owned --- 105.0
4,343.1 5,082.3
Property and equipment (net) 71.9 81.7
Other assets 430.4 436.7
Excess of cost over net assets acquired (net) 579.2 578.9
5,516.7 6,722.0
Financial services:
Cash and cash equivalents 12.2 40.5
Mortgage loans held for sale 464.1 485.5
Other assets 24.5 31.4
500.8 557.4
$6,017.5 $7,279.4
LIABILITIES
Homebuilding:
Accounts payable and other liabilities $834.0 $1,131.9
Notes payable 2,487.0 2,565.2
3,321.0 3,697.1
Financial services:
Accounts payable and other liabilities 14.3 17.1
Notes payable 391.4 398.0
405.7 415.1
3,726.7 4,112.2
Minority interests 20.9 135.9
STOCKHOLDERS' EQUITY
Common stock 1.5 1.6
Additional capital 1,349.6 1,581.7
Unearned compensation (4.4) (2.2)
Retained earnings 923.2 1,509.1
Treasury stock (at cost) --- (58.9)
2,269.9 3,031.3
$6,017.5 $7,279.4
D.R. HORTON, INC.
($'s in millions)
NET SALES ORDERS
Three Months Ended Fiscal Year Ended
September 30, September 30,
2002 2003 2002 2003
Units $'s Units $'s Units $'s Units $'s
Mid-Atlantic 910 $188.1 928 $203.7 3,381 $700.2 3,594 $780.8
Midwest 515 123.4 613 168.0 1,909 464.4 2,067 553.6
Southeast 1,038 178.4 1,214 240.3 3,718 617.0 4,528 863.3
Southwest 3,206 547.8 4,138 690.1 12,743 2,131.5 15,699 2,614.7
West 2,996 958.7 3,221 1,103.9 9,740 2,972.8 12,837 4,349.9
8,665 $1,996.4 10,114 $2,406.0 31,491 $6,885.9 38,725 $9,162.3
HOMES CLOSED
Three Months Ended Fiscal Year Ended
September 30, September 30,
2002 2003 2002 2003
Units $'s Units $'s Units $'s Units $'s
Mid-Atlantic 934 $194.6 1,004 $211.1 2,950 $625.7 3,245 $674.8
Midwest 588 155.2 667 178.0 1,911 488.7 2,002 513.2
Southeast 997 166.2 1,349 254.1 3,513 595.8 4,374 773.9
Southwest 3,888 644.4 4,271 703.6 11,859 1,997.3 14,209 2,381.5
West 3,147 958.9 4,236 1,434.2 9,528 2,822.1 12,104 3,990.7
9,554 $2,119.3 11,527 $2,781.0 29,761 $6,529.6 35,934 $8,334.1
SALES CONTRACT BACKLOG
As of September 30,
2002 2003
Units $'s Units $'s
Mid-Atlantic 1,253 $264.8 1,602 $370.9
Midwest 916 238.5 981 278.9
Southeast 1,669 274.7 1,823 364.1
Southwest 5,186 887.8 6,676 1,120.9
West 3,673 1,159.4 4,406 1,518.6
12,697 $2,825.2 15,488 $3,653.4
SOURCE D.R. Horton, Inc.
