D.R. Horton, Inc., America’s Builder, Reports Fiscal 2013 Second Quarter Earnings

Fiscal 2013 Second Quarter Highlights - as compared to the prior year quarter

• Pre-tax income increased 236% to $142.1 million
• Pre-tax income margin increased 550 basis points to 9.9% of revenues
• Net income increased 173% to $111.0 million, or $0.32 per diluted share
• Net sales orders increased 34% in homes to 7,879 and 52% in value to $2.0 billion
• Homes closed increased 33% in homes to 5,643 and 47% in value to $1.4 billion
• Sales order backlog increased 54% in homes to 9,553 and 76% in value to $2.4 billion

FORT WORTH, Texas--(BUSINESS WIRE)--Apr. 26, 2013-- D.R. Horton, Inc. (NYSE:DHI), America’s Builder, today reported that net income for its second fiscal quarter ended March 31, 2013 increased 173% to $111.0 million, or $0.32 per diluted share. Net income for the same quarter of fiscal 2012 was $40.6 million, or $0.13 per diluted share. Homebuilding revenue for the second quarter of fiscal 2013 increased 49% to $1.4 billion from $0.9 billion in the same quarter of 2012. Homes closed in the quarter increased 33% to 5,643, compared to 4,240 homes in the year-ago quarter.

For the six months ended March 31, 2013, net income increased 160% to $177.3 million, or $0.52 per diluted share, from $68.3 million, or $0.21 per diluted share, in the same period of fiscal 2012. Homebuilding revenue for the six months ended March 31, 2013 increased 44% to $2.6 billion from $1.8 billion in the first six months of fiscal 2012. Homes closed in the six-month period increased 30% to 10,825, compared to 8,358 homes in the same period of 2012.

Net sales orders for the second quarter ended March 31, 2013 increased 34% to 7,879 homes from 5,899 homes in the year-ago quarter and the value of net sales orders increased 52% to $2.0 billion from $1.3 billion. The Company’s cancellation rate (cancelled sales orders divided by gross sales orders) for the second quarter of fiscal 2013 was 19%. Net sales orders for the first six months of fiscal 2013 increased 36% to 13,138 homes from 9,693 homes in the first six months of fiscal 2012 and the value of net sales orders increased 55% to $3.3 billion from $2.1 billion.

The Company’s sales order backlog of homes under contract at March 31, 2013 increased 54% to 9,553 homes from 6,189 homes at March 31, 2012. The value of the backlog increased 76% to $2.4 billion at March 31, 2013 from $1.4 billion a year ago.

The Company ended the quarter with $1.1 billion of homebuilding unrestricted cash and net homebuilding debt to total capital of 33.7%. 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.

Donald R. Horton, Chairman of the Board, said, “The spring selling season is off to a strong start at D.R. Horton, with robust demand driving higher sales volumes and favorable pricing, which is reflected in the 14% increase in our average selling price. We are in an excellent position to continue to meet increased sales demand and aggregate market share with 15,800 homes in inventory and 175,000 lots owned or controlled under option contracts, of which 58,000 lots are fully developed.

“The improvement in many of our operating metrics accelerated this quarter, expanding our pre-tax income margin to 9.9% and increasing our pre-tax income 236% to $142.1 million. Our homes sold, closed and in backlog all increased by greater than 30% compared to the year-ago quarter, while the dollar values increased 52%, 47% and 76%, respectively. With $250 million in pre-tax income through the first six months of the year, we have already exceeded our pre-tax profits for all of fiscal 2012.”

The Company will host a conference call today (Friday, April 26^th) at 10:00 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 21,357 homes closed in the twelve-month period ended March 31, 2013. Founded in 1978 in Fort Worth, Texas, D.R. Horton has operations in 77 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 $100,000 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 we are in an excellent position to continue to meet increased sales demand and aggregate market share.

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: potential deterioration in homebuilding industry conditions and the current weak U.S. economy; the cyclical nature of the homebuilding industry and changes in general economic, real estate and other conditions; constriction of the credit markets, which could limit our ability to access capital and increase our costs of capital; reductions in the availability of mortgage financing and the liquidity provided by government-sponsored enterprises, the effects of government programs, a decrease in our ability to sell mortgage loans on attractive terms or an increase in mortgage interest rates; the risks associated with our land and lot inventory; home warranty and construction defect claims; supply shortages and other risks for acquiring land, building materials and skilled labor; reductions in the availability of performance bonds; increases 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; our debt obligations and our ability to comply with related debt covenants, restrictions and limitations; competitive conditions within the homebuilding and financial services industries; our ability to effect any future growth strategies successfully; the impact of an inflationary or deflationary environment; our ability to realize the full amount of our deferred income tax asset; and information technology failures and data security breaches. 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
Vice President of Communications