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

FORT WORTH, Texas, Apr 29, 2011 (BUSINESS WIRE) --

D.R. Horton, Inc. (NYSE:DHI), America's Builder, today reported net income for its second fiscal quarter ended March 31, 2011 of $27.8 million, or $0.09 per diluted share, which included a non-cash tax benefit of $59.2 million. The quarterly results also included $14.3 million in pre-tax charges to cost of sales for inventory impairments and land option cost write-offs. Net income for the same quarter of fiscal 2010 was $11.4 million, or $0.04 per diluted share. Homebuilding revenue for the second quarter of fiscal 2011 totaled $733.1 million, compared to $896.8 million in the same quarter of fiscal 2010. Homes closed in the quarter totaled 3,516 homes, compared to 4,260 homes in the same quarter of fiscal 2010.

For the six months ended March 31, 2011, the Company reported net income of $7.4 million, or $0.02 per diluted share. The six-month results included $22.7 million in pre-tax charges to cost of sales for inventory impairments and land option cost write-offs. Net income for the same period of fiscal 2010 was $203.4 million, or $0.61 per diluted share, which included a tax benefit of $148.6 million. Homebuilding revenue for the six months ended March 31, 2011 totaled $1.5 billion, compared to $2.0 billion in the same period of fiscal 2010. Homes closed in the six-month period totaled 7,153 homes, compared to 9,789 homes in the same period of fiscal 2010.

Net sales orders for the second quarter ended March 31, 2011 totaled 4,943 homes ($1.0 billion), compared to 6,438 homes ($1.3 billion) in the same quarter of fiscal 2010. The Company's cancellation rate (cancelled sales orders divided by gross sales orders) for the second quarter of fiscal 2011 was 25%. Net sales orders for the first six months of fiscal 2011 totaled 8,306 homes ($1.7 billion), compared to 10,475 homes ($2.2 billion) in the same period of fiscal 2010. The Company's sales order backlog of homes under contract at March 31, 2011 was 5,281 homes ($1.1 billion), compared to 6,314 homes ($1.3 billion) at March 31, 2010.

The Company's homebuilding cash and marketable securities at March 31, 2011 totaled $1.4 billion and homebuilding notes payable totaled $2.0 billion. In the second quarter, the Company repurchased a total of $64.7 million principal amount of its outstanding senior notes for a total purchase price of $67.2 million, plus accrued interest. Subsequent to quarter end, the Company repaid at maturity the remaining $70.1 million principal amount of its 6% senior notes. As previously announced, the Company redeemed the remaining $112.3 million principal amount of its 5.375% senior notes due 2012, which will result in a loss on early retirement of debt of $6.3 million in its third fiscal quarter.

The Company has declared a quarterly cash dividend of $0.0375 per share. The dividend is payable on May 24, 2011 to stockholders of record on May 12, 2011.

Donald R. Horton, Chairman of the Board, said, "Our sequential increases in net sales orders and backlog of 47% and 37%, respectively, reflect traditional seasonal demand. We increased our homes in inventory by 1,400 during the quarter to support the increased demand for new homes in the spring selling season. Our backlog of 5,281 homes at March 31^st is higher than our backlog at the beginning of the fiscal year, and we expect our closings and pre-tax profitability to be higher in the second half of fiscal 2011 than in the first half. Our balance sheet remains strong with homebuilding cash and marketable securities of $1.4 billion and net homebuilding leverage of 18.7%.

"Market conditions in the homebuilding industry are still challenging, with high foreclosures, significant existing home inventory, high unemployment, tight mortgage lending standards and weak consumer confidence. However, housing affordability remains near record highs, interest rates are favorable and new home inventory is still very low. We continue to focus on providing affordable homes for the first-time buyer while having product available for move-up buyers, further adjusting our SG&A cost structure relative to our current sales pace, controlling our construction costs and contracting for new communities with attractively priced lots while maintaining our strong balance sheet."

The Company will host a conference call today (Friday, April 29th) at 10:00 a.m. Eastern time. The dial-in number is 877-407-8033, and the call will also be webcast from the Company's website at 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 18,239 homes closed in the twelve-month period ended March 31, 2011. Founded in 1978 in Fort Worth, Texas, D.R. Horton has operations in 72 markets in 26 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 $700,000. 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 our expectation that closings and pre-tax profitability will be higher in the second half of fiscal 2011 than in the first half. The forward-looking statements also include our continued focus on providing affordable homes for the first-time buyer, having product available for move-up buyers, further adjusting our SG&A cost structure relative to our current sales pace, controlling our construction costs, contracting for new communities with attractively priced lots and maintaining our strong balance sheet.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 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