D.R. Horton, Inc., America’s Builder, Reports Fiscal 2015 Third Quarter Earnings and Declares Quarterly Dividend of $0.0625 Per Share

Fiscal 2015 Third Quarter Highlights - as compared to the same period in the prior year

• Net sales orders increased 25% in value to $3.0 billion and 22% in homes to 10,398
• Homes closed increased 37% in value to $2.9 billion and 28% in homes to 9,856
• Sales order backlog increased 15% in value to $3.7 billion and 12% in homes to 12,761
• Pre-tax income increased 94% to $333.8 million
• Pre-tax profit margin improved 330 basis points to 11.3%
• Net income increased 96% to $221.4 million, or $0.60 per diluted share
• Cash flow from operations for the nine months ended June 30, 2015 improved $762.3 million to $188.6 million

FORT WORTH, Texas--(BUSINESS WIRE)--Jul. 28, 2015-- D.R. Horton, Inc. (NYSE:DHI), America’s Builder, today reported that net income for its third fiscal quarter ended June 30, 2015 increased 96% to $221.4 million, or $0.60 per diluted share, from $113.1 million, or $0.32 per diluted share, in the same quarter of fiscal 2014. Homebuilding revenue for the third quarter of fiscal 2015 increased 37% to $2.9 billion from $2.1 billion in the same quarter of fiscal 2014. Homes closed in the quarter increased 28% to 9,856 homes, compared to 7,676 homes in the prior year quarter.

For the nine months ended June 30, 2015, net income increased 39% to $511.8 million, or $1.39 per diluted share, from $367.3 million, or $1.05 per diluted share, in the same period of fiscal 2014. Homebuilding revenue for the nine months ended June 30, 2015 increased 37% to $7.5 billion from $5.4 billion in the first nine months of fiscal 2014. Homes closed in the nine-month period increased 30% to 26,072, compared to 20,058 homes in the same period of fiscal 2014.

Net sales orders for the third quarter ended June 30, 2015 increased 22% to 10,398 homes and 25% in value to $3.0 billion, compared to 8,551 homes and $2.4 billion in the prior year quarter. The Company’s cancellation rate (cancelled sales orders divided by gross sales orders) for the third quarter of fiscal 2015 was 22%. Net sales orders for the first nine months of fiscal 2015 increased 28% to 28,903 homes from 22,574 homes in the first nine months of fiscal 2014 and the value of net sales orders increased 32% to $8.3 billion from $6.3 billion.

The Company’s sales order backlog of homes under contract at June 30, 2015 increased 12% to 12,761 homes and 15% in value to $3.7 billion, compared to 11,365 homes and $3.3 billion at June 30, 2014.

The Company ended the quarter with $766.7 million of homebuilding unrestricted cash and net homebuilding debt to total capital of 31.6%. Net homebuilding debt to total capital consists of homebuilding notes payable net of cash divided by total equity plus homebuilding notes payable net of cash.

The Company has declared a quarterly cash dividend of $0.0625 per common share. The dividend is payable on August 18, 2015 to stockholders of record on August 7, 2015.

Donald R. Horton, Chairman of the Board, said, “The D.R. Horton team delivered another strong quarter of profitability, highlighted by $333.8 million of pre-tax income, on $3.0 billion of revenues. Our pre-tax profit margin improved 330 basis points from the prior year quarter to 11.3%. In the third quarter the value of our net sales orders increased by 25%, our home sales revenue increased by 37%, and the value of our sales order backlog increased by 15%.

“This quarter we made significant progress toward our goal of producing sustainable positive cash flow from operations by generating $357.4 million of cash. For the nine months ended June, we generated $188.6 million of cash flow from operations, an improvement of $762.3 million from the same period in the prior year.

“Solid performance in our three core brands is enabling us to capitalize on market opportunities and continue to expand our industry-leading market share. We are well-positioned to finish our fiscal year strong and have an even stronger fiscal 2016 with 12,761 homes in backlog, a robust community count, finished lot supply and inventory of homes available for sale and our diversified D.R. Horton, Emerald Homes and Express Homes product offerings. We remain intently focused on growing our revenues and profits at a double-digit pace, while generating improved returns and continued positive cash flows.”

The Company will host a conference call today (Tuesday, July 28th) 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 investor.drhorton.com.

D.R. Horton, Inc., America’s Builder, has been the largest homebuilder by volume in the United States for thirteen consecutive years. Founded in 1978 in Fort Worth, Texas, D.R. Horton has operations in 79 markets in 27 states across the United States and closed 34,684 homes in the twelve-month period ended June 30, 2015. The Company is engaged in the construction and sale of high-quality homes through its diverse brand portfolio that includes D.R. Horton, Express Homes and Emerald Homes with sales prices ranging from $100,000 to over $1,000,000. 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 this quarter we made significant progress toward our goal of producing sustainable positive cash flow from operations, that solid performance in our three core brands is enabling us to capitalize on market opportunities and continue to expand our industry-leading market share and that we are well-positioned to finish our fiscal year strong and have an even stronger fiscal 2016 with 12,761 homes in backlog, a robust community count, finished lot supply and inventory of homes available for sale and our diversified D.R. Horton, Emerald Homes and Express Homes product offerings. The forward-looking statements also include that we remain intently focused on growing our revenues and profits at a double-digit pace, while generating improved returns and continued positive cash flows.

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 or general economic conditions; the cyclical nature of the homebuilding industry and changes in 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 of acquiring land, building materials and skilled labor; reductions in the availability of performance bonds; increases in the costs of owning a home; the impact of an inflationary, deflationary or higher interest rate environment; the effects of governmental regulations and environmental matters on our homebuilding operations; the effects of governmental regulations on our financial services operations; our substantial debt 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 our growth strategies or acquisitions successfully; our ability to realize the full amount of our deferred income tax assets; the effects of the loss of key personnel; the effects of negative publicity; 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

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Source: D.R. Horton, Inc.

D.R. Horton, Inc.
Jessica Hansen, 817-390-8200
Vice President of Communications
[email protected]