FORT WORTH, Texas--(BUSINESS WIRE)--Jan. 29, 2013--
D.R. Horton, Inc. (NYSE:DHI), America’s Builder, today reported that net
income for its first fiscal quarter ended
December 31, 2012
increased
139% to
$66.3 million, or
$0.20
per diluted share. Net income for the
same quarter of fiscal 2012 was
$27.7 million, or
$0.09
per diluted
share. Homebuilding revenue for the first quarter of fiscal 2013
increased 39% to
$1.2 billion
from
$0.9 billion
in the same quarter of
2012. Homes closed in the quarter increased 26% to 5,182, compared to
4,118 homes in the year-ago quarter.
Net sales orders for the first quarter ended
December 31, 2012
increased
39% to 5,259 homes from 3,794 homes in the year-ago quarter and the
value of net sales orders increased 60% to
$1.3 billion
from
$0.8
billion. The Company’s cancellation rate (cancelled sales orders divided
by gross sales orders) for the first quarter of fiscal 2013 was 22%. The
Company’s sales order backlog of homes under contract at
December 31,
2012
increased 62% to 7,317 homes from 4,530 homes at
December 31, 2011.
The value of the backlog increased 80% to
$1.8 billion
at
December 31,
2012
from
$1.0 billion
a year ago.
The Company ended the quarter with
$643.1 million
of homebuilding
unrestricted cash and marketable securities and net homebuilding debt to
total capital of 33.0%. 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.
Donald R. Horton, Chairman of the Board, said, “This quarter was our
most profitable first quarter since 2007, with
$107.9 million
of pre-tax
income, a 270% increase from the year-ago quarter. We experienced
substantial increases in the number of homes sold, closed and in backlog
compared to the year-ago quarter. At the same time, our average sales
price has increased due to pricing power, geographic mix and larger
average home size. As a result, we achieved dollar value increases in
homes sold of 60%, homes closed of 38% and backlog of 80%.
“We experienced broad improvement in demand in most of our markets this
quarter, and we significantly increased our investments in homes under
construction, finished lots, land and land development to capture this
increasing demand.
D.R. Horton
is the best positioned it has been in its
35 year history. We are looking forward to the spring selling season
with optimism.”
The Company will host a conference call today (Tuesday, January 29th)
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 19,954 homes closed in the twelve-month
period ended
December 31, 2012. 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
D.R. Horton
is the best positioned it
has been in its 35 year history and that we are looking forward to the
spring selling season with optimism.
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 which is filed with the
Securities and Exchange
Commission.
WEBSITE ADDRESS: www.drhorton.com
| |
| D.R. HORTON, INC. |
| CONSOLIDATED BALANCE SHEETS |
| (UNAUDITED) |
| |
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
September 30, |
|
|
|
|
2012 |
|
|
2012 |
|
ASSETS |
|
|
(In millions) |
|
Homebuilding: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
546.4 |
|
|
|
$ |
1,030.4 |
|
|
Marketable securities, available-for-sale |
|
|
|
96.7 |
|
|
|
|
298.0 |
|
|
Restricted cash |
|
|
|
54.8 |
|
|
|
|
49.3 |
|
|
Inventories: |
|
|
|
|
|
|
|
Construction in progress and finished homes |
|
|
|
1,909.5 |
|
|
|
|
1,682.7 |
|
|
Residential land and lots - developed and under development |
|
|
|
2,475.7 |
|
|
|
|
1,838.4 |
|
|
Land held for development |
|
|
|
629.9 |
|
|
|
|
644.1 |
|
|
|
|
|
|
5,015.1 |
|
|
|
|
4,165.2 |
|
|
Income taxes receivable |
|
|
|
- |
|
|
|
|
14.4 |
|
|
Deferred income taxes, net of valuation allowance of $41.9 million
at December 31, 2012 and September 30, 2012 |
|
|
|
683.5 |
|
|
|
|
709.5 |
|
|
Property and equipment, net |
|
|
|
81.9 |
|
|
|
|
72.6 |
|
|
Other assets |
|
|
|
454.2 |
|
|
|
|
456.8 |
|
|
Goodwill |
|
|
|
38.9 |
|
|
|
|
38.9 |
|
|
|
|
|
|
6,971.5 |
|
|
|
|
6,835.1 |
|
|
Financial Services: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
20.5 |
|
|
|
|
17.3 |
|
|
Mortgage loans held for sale |
|
|
|
307.9 |
|
|
|
|
345.3 |
|
|
Other assets |
|
|
|
47.4 |
|
|
|
|
50.5 |
|
|
|
|
|
|
375.8 |
|
|
|
|
413.1 |
|
|
|
|
|
$ |
7,347.3 |
|
|
|
$ |
7,248.2 |
|
|
LIABILITIES |
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
Accounts payable |
|
|
$ |
241.8 |
|
|
|
$ |
216.2 |
|
|
Accrued expenses and other liabilities |
|
|
|
856.6 |
|
|
|
|
893.8 |
|
|
Notes payable |
|
|
|
2,424.3 |
|
|
|
|
2,305.3 |
|
|
|
|
|
|
3,522.7 |
|
|
|
|
3,415.3 |
|
|
Financial Services: |
|
|
|
|
|
|
|
Accounts payable and other liabilities |
|
|
|
42.1 |
|
|
|
|
50.4 |
|
|
Mortgage repurchase facility |
|
|
|
169.4 |
|
|
|
|
187.8 |
|
|
|
|
|
|
211.5 |
|
|
|
|
238.2 |
|
|
|
|
|
|
3,734.2 |
|
|
|
|
3,653.5 |
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
Common stock |
|
|
|
3.3 |
|
|
|
|
3.3 |
|
|
Additional paid-in capital |
|
|
|
1,992.2 |
|
|
|
|
1,979.8 |
|
|
Retained earnings |
|
|
|
1,749.2 |
|
|
|
|
1,743.1 |
|
|
Treasury stock, at cost |
|
|
|
(134.3 |
) |
|
|
|
(134.3 |
) |
|
Accumulated other comprehensive income |
|
|
|
- |
|
|
|
|
0.2 |
|
|
|
|
|
|
3,610.4 |
|
|
|
|
3,592.1 |
|
|
Noncontrolling interests |
|
|
|
2.7 |
|
|
|
|
2.6 |
|
|
|
|
|
|
3,613.1 |
|
|
|
|
3,594.7 |
|
|
|
|
|
$ |
7,347.3 |
|
|
|
$ |
7,248.2 |
|
|
|
|
| D.R. HORTON, INC. |
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME |
| (UNAUDITED) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
December 31, |
|
|
|
|
|
|
|
2012 |
|
|
|
|
2011 |
|
|
|
|
|
|
(In millions, except per share data) |
| Homebuilding: |
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Home sales |
|
|
$ |
1,223.3 |
|
|
|
$ |
884.3 |
|
|
|
Land/lot sales and other |
|
|
|
9.9 |
|
|
|
|
1.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,233.2 |
|
|
|
|
885.6 |
|
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
Home sales |
|
|
|
992.8 |
|
|
|
|
735.6 |
|
|
|
Land/lot sales and other |
|
|
|
8.2 |
|
|
|
|
- |
|
|
|
Inventory impairments and land option cost write-offs |
|
|
|
1.3 |
|
|
|
|
1.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,002.3 |
|
|
|
|
737.0 |
|
|
Gross profit: |
|
|
|
|
|
|
|
|
|
Home sales |
|
|
|
230.5 |
|
|
|
|
148.7 |
|
|
|
Land/lot sales and other |
|
|
|
1.7 |
|
|
|
|
1.3 |
|
|
|
Inventory impairments and land option cost write-offs |
|
|
|
(1.3 |
) |
|
|
|
(1.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
230.9 |
|
|
|
|
148.6 |
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expense |
|
|
|
140.8 |
|
|
|
|
119.0 |
|
|
Interest expense |
|
|
|
3.2 |
|
|
|
|
6.9 |
|
|
Gain on early retirement of debt, net |
|
|
|
- |
|
|
|
|
(0.1 |
) |
|
Other (income) |
|
|
|
(3.3 |
) |
|
|
|
(2.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
Operating income from Homebuilding |
|
|
|
90.2 |
|
|
|
|
25.0 |
|
|
|
|
|
|
|
|
|
|
|
| Financial Services: |
|
|
|
|
|
|
|
Revenues, net of recourse and reinsurance expense |
|
|
|
41.9 |
|
|
|
|
21.0 |
|
|
General and administrative expense |
|
|
|
25.7 |
|
|
|
|
18.9 |
|
|
Interest expense |
|
|
|
1.0 |
|
|
|
|
0.9 |
|
|
Interest and other (income) |
|
|
|
(2.5 |
) |
|
|
|
(3.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
Operating income from Financial Services |
|
|
|
17.7 |
|
|
|
|
4.2 |
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
|
|
|
107.9 |
|
|
|
|
29.2 |
|
| Income tax expense |
|
|
|
41.6 |
|
|
|
|
1.5 |
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
|
$ |
66.3 |
|
|
|
$ |
27.7 |
|
|
|
|
|
|
|
|
|
|
|
| Other comprehensive income (loss), net of income tax: |
|
|
|
|
|
|
| Unrealized (loss) gain related to available-for-sale securities |
|
|
|
(0.1 |
) |
|
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
| Comprehensive income |
|
|
$ |
66.2 |
|
|
|
$ |
27.8 |
|
|
|
|
|
|
|
|
|
|
|
| Basic: |
|
|
|
|
|
|
|
|
|
Net income per share |
|
|
$ |
0.21 |
|
|
|
$ |
0.09 |
|
|
Weighted average number of common shares |
|
|
|
321.1 |
|
|
|
|
316.3 |
|
| Diluted: |
|
|
|
|
|
|
|
|
Net income per share |
|
|
$ |
0.20 |
|
|
|
$ |
0.09 |
|
|
Numerator for diluted income per share after
assumed conversions |
|
|
|
|
|
|
|
|
|
$ |
72.0 |
|
|
|
$ |
27.7 |
|
|
Adjusted weighted average number of common shares |
|
|
|
364.1 |
|
|
|
|
316.5 |
|
|
|
|
|
|
|
|
|
|
|
| Other Consolidated Financial Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest amortized to home and land/lot cost of sales |
|
|
$ |
24.9 |
|
|
|
$ |
20.4 |
|
|
Depreciation and amortization |
|
|
$ |
4.8 |
|
|
|
$ |
5.0 |
|
|
Interest incurred |
|
|
$ |
38.1 |
|
|
|
$ |
28.8 |
|
|
|
|
|
| D.R. HORTON, INC. |
|
|
|
| CONSOLIDATED STATEMENT OF CASH FLOWS |
|
|
|
| (UNAUDITED) |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
December 31, 2012 |
|
|
|
|
(In millions) |
|
|
|
|
|
|
Operating Activities |
|
|
|
|
Net income |
|
|
$ |
66.3 |
|
|
Adjustments to reconcile net income to net cash used in operating
activities: |
|
|
|
|
Depreciation and amortization |
|
|
|
4.8 |
|
|
Amortization of discounts and fees |
|
|
|
10.4 |
|
|
Stock based compensation expense |
|
|
|
3.5 |
|
|
Deferred income taxes |
|
|
|
35.2 |
|
|
Gain on sale of marketable securities |
|
|
|
(0.2 |
) |
|
Inventory impairments and land option cost write-offs |
|
|
|
1.3 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
Increase in construction in progress and finished homes |
|
|
|
(226.8 |
) |
|
Increase in residential land and lots — developed, under
development, and held for development |
|
|
|
|
|
|
|
(612.8 |
) |
|
Decrease in other assets |
|
|
|
22.8 |
|
|
Decrease in income taxes receivable |
|
|
|
14.4 |
|
|
Decrease in mortgage loans held for sale |
|
|
|
37.4 |
|
|
Decrease in accounts payable, accrued expenses and other liabilities |
|
|
|
(12.8 |
) |
|
Net cash used in operating activities |
|
|
|
(656.5 |
) |
|
Investing Activities |
|
|
|
|
Purchases of property and equipment |
|
|
|
(14.0 |
) |
|
Purchases of marketable securities |
|
|
|
(26.8 |
) |
|
Proceeds from the sale or maturity of marketable securities |
|
|
|
226.7 |
|
|
Increase in restricted cash |
|
|
|
(5.5 |
) |
|
Net principal increase of other mortgage loans and real estate
owned |
|
|
|
|
|
|
|
(0.2 |
) |
|
Purchases of debt securities collateralized by residential real
estate |
|
|
|
(18.6 |
) |
|
Payment related to acquisition of a business |
|
|
|
(9.4 |
) |
|
Net cash provided by investing activities |
|
|
|
152.2 |
|
|
Financing Activities |
|
|
|
|
Proceeds from notes payable |
|
|
|
100.0 |
|
|
Repayment of notes payable |
|
|
|
(18.4 |
) |
|
Proceeds from stock associated with certain employee benefit plans |
|
|
|
2.1 |
|
|
Cash dividends paid |
|
|
|
(60.2 |
) |
|
Net cash provided by financing activities |
|
|
|
23.5 |
|
|
Decrease in Cash and Cash Equivalents |
|
|
|
(480.8 |
) |
|
Cash and cash equivalents at beginning of period |
|
|
|
1,047.7 |
|
|
Cash and cash equivalents at end of period |
|
|
$ |
566.9 |
|
| |
|
|
|
|
|
|
|
|
D.R. HORTON, INC. |
|
|
|
|
($'s in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES ORDERS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
|
|
2012 |
|
2011 |
|
|
|
|
Homes |
|
Value |
|
Homes |
|
Value |
| East |
|
|
528 |
|
$ |
141.4 |
|
509 |
|
$ |
115.3 |
| Midwest |
|
|
275 |
|
|
89.9 |
|
213 |
|
|
59.1 |
| Southeast |
|
|
1,584 |
|
|
353.5 |
|
921 |
|
|
181.1 |
| South Central |
|
|
1,641 |
|
|
330.6 |
|
1,299 |
|
|
233.2 |
| Southwest |
|
|
247 |
|
|
53.2 |
|
249 |
|
|
46.9 |
| West |
|
|
984 |
|
|
345.5 |
|
603 |
|
|
187.6 |
|
|
|
|
5,259 |
|
$ |
1,314.1 |
|
3,794 |
|
$ |
823.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOMES CLOSED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
|
|
2012 |
|
2011 |
|
|
|
|
Homes |
|
Value |
|
Homes |
|
Value |
| East |
|
|
517 |
|
$ |
137.4 |
|
495 |
|
$ |
118.8 |
| Midwest |
|
|
287 |
|
|
89.4 |
|
213 |
|
|
57.7 |
| Southeast |
|
|
1,374 |
|
|
291.3 |
|
1,013 |
|
|
195.6 |
| South Central |
|
|
1,619 |
|
|
309.3 |
|
1,492 |
|
|
266.7 |
| Southwest |
|
|
383 |
|
|
76.0 |
|
279 |
|
|
54.0 |
| West |
|
|
1,002 |
|
|
319.9 |
|
626 |
|
|
191.5 |
|
|
|
|
5,182 |
|
$ |
1,223.3 |
|
4,118 |
|
$ |
884.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES ORDER BACKLOG |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|
|
2012 |
|
2011 |
|
|
|
|
Homes |
|
Value |
|
Homes |
|
Value |
| East |
|
|
674 |
|
$ |
174.6 |
|
620 |
|
$ |
144.1 |
| Midwest |
|
|
413 |
|
|
127.9 |
|
288 |
|
|
81.9 |
| Southeast |
|
|
2,419 |
|
|
527.1 |
|
1,193 |
|
|
232.4 |
| South Central |
|
|
2,254 |
|
|
454.8 |
|
1,517 |
|
|
276.0 |
| Southwest |
|
|
563 |
|
|
112.1 |
|
396 |
|
|
69.5 |
| West |
|
|
994 |
|
|
362.2 |
|
516 |
|
|
171.1 |
|
|
|
|
7,317 |
|
$ |
1,758.7 |
|
4,530 |
|
$ |
975.0 |
Source:
D.R. Horton, Inc.
D.R. Horton, Inc.
Jessica Hansen, 817-390-8200
Vice President
of Communications
