D.R. Horton, Inc., America's Builder, Reports Fourth Quarter and Fiscal 2011 Results and Declares Quarterly Dividend

FORT WORTH, Texas, Nov 11, 2011 (BUSINESS WIRE) --

D.R. Horton, Inc. (NYSE:DHI), America's Builder, today reported net income for its fourth fiscal quarter ended September 30, 2011 of $35.7 million, or $0.11 per diluted share. The quarterly results included $12.8 million in pre-tax charges to cost of sales for inventory impairments and land option cost write-offs. In the same quarter of fiscal 2010, the net loss was $8.9 million, or $0.03 per diluted share, which included $30.8 million in pre-tax charges for inventory impairments and land option cost write-offs. Homebuilding revenue for the fourth quarter of fiscal 2011 totaled $1.1 billion, compared to $925.7 million in the same quarter of fiscal 2010. Homes closed in the quarter totaled 4,987, compared to 4,281 homes in the same quarter of fiscal 2010.

For the fiscal year ended September 30, 2011, the Company reported net income of $71.8 million, or $0.23 per diluted share. The fiscal year results included $45.4 million in pre-tax charges to cost of sales for inventory impairments and land option cost write-offs and a tax benefit of $59.7 million. For fiscal 2010, net income was $245.1 million, or $0.77 per diluted share, which included $64.7 million in pre-tax charges for inventory impairments and land option cost write-offs and a tax benefit of $145.6 million. Homebuilding revenue for fiscal 2011 totaled $3.5 billion, compared to $4.3 billion for fiscal 2010. Homes closed in fiscal 2011 totaled 16,695 homes, compared to 20,875 homes in fiscal 2010.

Net sales orders for the fourth quarter ended September 30, 2011 totaled 4,241 homes ($927.6 million), compared to 3,979 homes ($817.5 million) in the same quarter of fiscal 2010. The Company's cancellation rate (cancelled sales orders divided by gross sales orders) for the fourth quarter of fiscal 2011 was 29%. Net sales orders for fiscal 2011 were 17,421 homes ($3.7 billion), compared to 19,375 homes ($4.0 billion) for fiscal 2010. The Company's sales order backlog of homes under contract at September 30, 2011 was 4,854 homes ($1.0 billion), compared to 4,128 homes ($850.8 million) at September 30, 2010.

During the fourth quarter, the Company paid at maturity the remaining principal amount of $106.1 million of its 7.875% senior notes and also repurchased a total of $77.1 million principal amount of its outstanding senior notes. Fiscal 2011 homebuilding debt maturities, repurchases and redemptions totaled $495.4 million. The company ended its fiscal year with $1.0 billion of homebuilding unrestricted cash and marketable securities and net homebuilding debt to total capital of 18.0%. Net homebuilding debt to total capital consists of homebuilding notes payable net of cash and marketable securities divided by total equity plus homebuilding notes payable net of cash and marketable securities.

The Company has declared a quarterly cash dividend of $0.0375 per share. The dividend is payable on December 13, 2011 to stockholders of record on December 2, 2011.

Donald R. Horton, Chairman of the Board, said, "Our strategy to open new communities for first-time and move-up buyers, improve gross margins, adjust our overhead and reduce interest expense led to our second consecutive year of profitability, despite continued challenging market conditions. In fiscal 2011, we reduced our homebuilding SG&A expense by $43 million and our homebuilding interest expensed directly and amortized to cost of sales by $67 million. Positive sales comparisons in our third and fourth quarters contributed to an 18% increase in our sales order backlog, positioning us for a stronger start to fiscal 2012. We will continue to control our construction costs, SG&A and inventory levels, while maintaining our strong balance sheet and liquidity, and we look forward to another year of profitability in fiscal 2012."

The Company will host a conference call today (Friday, November 11th) at 11:00 a.m. Eastern time. The dial-in number is 877-407-8033, and the call will also be webcast from www.drhorton.com on the "Investors" page.

D.R. Horton, Inc., America's Builder, is the largest homebuilder in the United States, based on its 16,695 homes closed in the twelve-month period ended September 30, 2011. Founded in 1978 in Fort Worth, Texas, D.R. Horton has operations in 73 markets in 25 states in the East, Midwest, Southeast, South Central, Southwest and West regions of the United States. The Company is engaged in the construction and sale of high quality homes with sales prices ranging from $90,000 to over $600,000. D.R. Horton 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 include that our 18% increase in our sales order backlog positions us for a stronger start to fiscal 2012. The forward-looking statements also include that we will continue to control our construction costs, SG&A and inventory levels, while maintaining our strong balance sheet and liquidity and that we look forward to another year of profitability in fiscal 2012. 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: the continuing downturn in the homebuilding industry, including further deterioration in industry or broader economic conditions; the continuing constriction of the credit markets, which could limit our ability to access capital and increase our costs of capital; the reduction in availability of mortgage financing, increases in mortgage interest rates and the effects of government programs; the limited success of our strategies in responding to adverse conditions in the industry; the impact of an inflationary or deflationary environment; changes in general economic, real estate and other business conditions; the risks associated with our inventory ownership position in changing market conditions; supply risks for land, materials and labor; changes in the costs of owning a home; the effects of governmental regulations and environmental matters on our homebuilding operations; the effects of governmental regulation on our financial services operations; the uncertainties inherent in home warranty and construction defect claims matters; our substantial debt and our ability to comply with related debt covenants, restrictions and limitations; competitive conditions within our industry; our ability to effect any future growth strategies successfully; our ability to realize our deferred income tax asset; and our ability to utilize our tax losses, which could be substantially limited if we experienced an ownership change as defined in the Internal Revenue Code. 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 our most recent quarterly report on Form 10-Q, both of which are filed with the Securities and Exchange Commission.

WEBSITE ADDRESS:www.drhorton.com

SOURCE: D.R. Horton, Inc.

D.R. Horton, Inc.
Jessica Hansen, 817-390-8200
Director of Investor Relations