D.R. Horton, Inc., America’s Builder, Reports Fiscal 2018 Second Quarter Earnings and Declares Quarterly Dividend of $0.125 Per Share
ARLINGTON, Texas--(BUSINESS WIRE)--
D.R. Horton, Inc.:
Fiscal 2018 Second Quarter Highlights - comparisons to the prior year
quarter
-
Net income attributable to D.R. Horton increased 53% to $351.0 million
or $0.91 per diluted share
-
Consolidated pre-tax income increased 26% to $444.8 million
-
Consolidated pre-tax profit margin improved 80 basis points to 11.7%
-
Net sales orders increased 13% in value to $4.7 billion and 13% in
homes to 15,828
-
Homes closed increased 16% in value to $3.7 billion and 15% in homes
to 12,281
-
Increasing fiscal 2018 guidance for consolidated pre-tax profit margin
to a range of 12.1% to 12.3%
-
Increasing fiscal 2018 guidance for cash flow from operations to at
least $800 million excluding Forestar
D.R. Horton, Inc. (NYSE:DHI), America’s Builder, today reported that net
income attributable to D.R. Horton for the second fiscal quarter
increased 53% to $351.0 million, or $0.91 per diluted share, compared to
$229.2 million, or $0.60 per diluted share, in the same quarter of
fiscal 2017. Homebuilding revenue for the second quarter of fiscal 2018
increased 16% to $3.7 billion from $3.2 billion in the same quarter of
fiscal 2017. Homes closed in the quarter increased 15% to 12,281 homes
compared to 10,685 homes closed in the same quarter of fiscal 2017. The
current quarter results included $30.1 million of pre-tax inventory and
land option charges to cost of sales, of which $24.5 million related to
the settlement of an outstanding dispute associated with a land
transaction.
For the six months ended March 31, 2018, net income attributable to D.R.
Horton increased 24% to $540.3 million, or $1.41 per diluted share,
compared to $436.1 million, or $1.15 per diluted share, in the same
period of fiscal 2017. Homebuilding revenue for the first six months of
fiscal 2018 increased 15% to $6.9 billion from $6.0 billion in the same
period of fiscal 2017. Homes closed in the first six months of 2018
increased 15% to 23,069 homes compared to 20,089 homes closed in the
same period of fiscal 2017.
The Company’s effective tax rates for the three and six month periods
ended March 31, 2018 reflect a tax benefit from the rate reduction from
the December Tax Cuts and Jobs Act of 2017 (Tax Act), an excess tax
benefit related to stock-based compensation and the February Bipartisan
Budget Act of 2018, which retroactively reinstated the federal tax
credit for energy-efficient homes. The six-month period ended March 31,
2018 included a one-time non-cash income tax charge of $108.7 million to
re-measure the Company’s net deferred tax assets as a result of the Tax
Act.
Net sales orders for the second quarter ended March 31, 2018 increased
13% to 15,828 homes and 13% in value to $4.7 billion compared to 13,991
homes and $4.2 billion in the same quarter of the prior year. The
Company’s cancellation rate (cancelled sales orders divided by gross
sales orders) for the second quarter of fiscal 2018 was 19% compared to
20% in the prior year quarter. Net sales orders for the first six months
of fiscal 2018 increased 14% to 26,581 homes and 15% in value to $8.0
billion compared to 23,232 homes and $7.0 billion in the same period of
fiscal 2017.
The Company’s homes in inventory at March 31, 2018 increased 8% to
29,400 homes compared to 27,100 homes at March 31, 2017. The Company's
homebuilding land and lot portfolio at March 31, 2018 increased 13% to
257,700 lots, of which 48% were owned and 52% were controlled through
option contracts, compared to 227,300 lots at March 31, 2017, of which
52% were owned and 48% were controlled through option contracts.
The Company ended the second quarter with $528.9 million of homebuilding
unrestricted cash and a homebuilding debt to total capital ratio of
24.2%. Homebuilding debt to total capital consists of homebuilding notes
payable divided by stockholders’ equity plus homebuilding notes payable.
Donald R. Horton, Chairman of the Board, said, “The D.R. Horton team
delivered strong results in our second quarter. Net income in the second
quarter of fiscal 2018 increased 53% to $351 million on a 17% increase
in consolidated revenues to $3.8 billion. Our pre-tax profit margin
improved 80 basis points to 11.7%, and our net sales orders increased
13%. These results reflect the strength of our experienced operational
teams, diverse product offerings from our family of brands and solid
market conditions across our broad national footprint.
“Our balance sheet strength, liquidity and continued earnings growth are
increasing our strategic and financial flexibility, and we plan to
maintain our disciplined, opportunistic position to enhance the
long-term value of our company. We continue to expect to grow our
revenues and pre-tax profits at a double-digit annual pace, while
generating increasing annual operating cash flows and returns.
With 29,400 homes in inventory at the end of March and 258,000 lots
owned and controlled, we are well-positioned for the remainder of fiscal
2018 and future years.”
Share Repurchases and Dividends
During the second quarter of fiscal 2018, the Company paid cash
dividends of $47.1 million and repurchased 500,000 shares of common
stock for $22.5 million. The Company’s remaining stock repurchase
authorization at March 31, 2018 was $152.1 million. The Company has also
declared a quarterly cash dividend of $0.125 per common share that is
payable on May 25, 2018 to stockholders of record on May 11, 2018.
Forestar Segment
Forestar Group Inc. (NYSE:FOR)(“Forestar”), a majority-owned subsidiary
of D.R. Horton, is a publicly-traded residential and real estate
development company, which currently operates in 18 markets and 10
states. Forestar’s operating results for the three-month period ended
March 31, 2018 and from October 5, 2017 (acquisition date) through
March 31, 2018 are fully consolidated in the Company’s financial
statements with the 25% interest not owned by the Company reported as
noncontrolling interests.
During the quarter, Forestar sold a portion of its assets for $232.0
million and recognized a gain on the sale of $0.7 million. This
strategic asset sale included projects owned both directly and
indirectly through ventures and consisted of approximately 750 developed
and under development lots, over 4,000 undeveloped lots, 730 unentitled
acres, an interest in one multi-family operating property and a
multi-family development site. The net proceeds after purchase price
adjustments and other costs associated with selling these projects was
$217.5 million.
Forestar’s results of operations for the three-month period ended
March 31, 2018 and from the acquisition date through March 31, 2018 are
included in the Company’s segment information following the consolidated
financials. On its conference call today, the Company will providean
update on Forestar’s operations and expectations regarding Forestar's
investment and growth plans.
Guidance
Based on current market conditions and the Company’s results for the
first six months of fiscal 2018, D.R. Horton is updating its fiscal 2018
guidance as follows:
-
Consolidated pre-tax profit margin of 12.1% to 12.3% compared
to prior guidance of 11.8% to 12.0%
-
Consolidated revenues between $15.9 billion and $16.3 billion
-
Homes closed between 51,500 and 52,500 homes
-
Home sales gross margin in the range of 20.5% to 21.0%, with potential
quarterly fluctuations that may be outside of this range
-
Income tax rate of approximately 25%, excluding the first quarter
non-cash charge to reduce net deferred tax assets as a result of the
Tax Act
-
Cash flow from operations of at least $800 million excluding Forestar,
an increase of $100 million from prior guidance due primarily to a
higher expected pre-tax profit margin
D.R. Horton reaffirms its previously issued fiscal 2018 guidance for
other metrics including:
-
Homebuilding SG&A expense of around 8.7% of homebuilding revenues
-
Financial services operating margin of approximately 30%
-
Outstanding share count increase of less than 1%
Presentation
Consistent with the first quarter of fiscal 2018, the Company’s
consolidated balance sheets and statements of operations present its
homebuilding, Forestar land development, financial services and other
operations on a combined basis. Prior year amounts have also been
combined to reflect this presentation. See the segment information
following the consolidated financials for detailed financial information
for all of the Company’s reporting segments.
Conference Call and Webcast Details
The Company will host a conference call today (Thursday, April 26) at
8:30 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.
About D.R. Horton, Inc.
D.R. Horton, Inc., America’s Builder, has been the largest homebuilder
by volume in the United States for sixteen consecutive years. Founded in
1978 in Fort Worth, Texas, D.R. Horton has operations in 79 markets in
26 states across the United States and closed 48,731 homes in the
twelve-month period ended March 31, 2018. The Company is engaged in the
construction and sale of high-quality homes through its diverse brand
portfolio that includes D.R. Horton, Emerald Homes, Express Homes and
Freedom 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.
Forward-Looking Statements
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 balance sheet strength, liquidity and
continued earnings growth are increasing our strategic and financial
flexibility, and we plan to maintain our disciplined, opportunistic
position to enhance the long-term value of our company; we continue to
expect to grow our revenues and pre-tax profits at a double-digit annual
pace, while generating increasing annual operating cash flows and
returns; and with 29,400 homes in inventory at the end of March and
258,000 lots owned and controlled, we are well-positioned for the
remainder of fiscal 2018 and future years. The forward-looking
statements also include all metrics in the Guidance section of this
release and in the Forestar segment information.
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 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 provided by government agencies,
changes in government financing 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;
our ability to effect our growth strategies, acquisitions or investments
successfully; home warranty and construction defect claims; the effects
of a health and safety incident; the effects of negative publicity;
supply shortages and other risks of acquiring land, building materials
and skilled labor; the impact of an inflationary, deflationary or higher
interest rate environment; 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 regulations on our financial
services operations; our significant debt and our ability to comply with
related debt covenants, restrictions and limitations; competitive
conditions within the homebuilding and financial services industries;
the effects of the loss of key personnel; 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 (SEC).
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D.R. HORTON, INC. AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(UNAUDITED) |
|
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March 31,
2018 |
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September 30,
2017 |
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(In millions) |
ASSETS |
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|
Cash and cash equivalents |
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|
$ |
1,010.8 |
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|
$ |
1,007.8 |
|
Restricted cash |
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|
55.4 |
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|
16.5 |
|
Inventories: |
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Construction in progress and finished homes |
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5,119.6 |
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4,606.0 |
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Residential land and lots — developed, under development, held for
development and held for sale |
|
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|
5,024.8 |
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|
4,631.1 |
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|
10,144.4 |
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9,237.1 |
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Investment in unconsolidated entities |
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|
32.1 |
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|
— |
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Mortgage loans held for sale |
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|
658.2 |
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|
587.3 |
|
Deferred income taxes, net of valuation allowance of
$25.9 million
and
$11.2 million
at March 31, 2018 and September 30, 2017,
respectively |
|
|
|
219.9 |
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|
365.0 |
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Property and equipment, net |
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|
380.4 |
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|
325.0 |
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Other assets |
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|
607.7 |
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565.9 |
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Goodwill |
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|
109.2 |
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|
80.0 |
|
Total assets |
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$ |
13,218.1 |
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$ |
12,184.6 |
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LIABILITIES |
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Accounts payable |
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$ |
582.7 |
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$ |
580.4 |
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Accrued expenses and other liabilities |
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|
1,029.6 |
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|
985.0 |
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Notes payable |
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3,233.9 |
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2,871.6 |
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Total liabilities |
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4,846.2 |
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4,437.0 |
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EQUITY |
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Common stock,
$.01
par value, 1,000,000,000 shares authorized,
387,459,588 shares issued and 377,409,517 shares outstanding at
March 31, 2018 and 384,036,150 shares issued and 374,986,079
shares outstanding at September 30, 2017 |
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3.9 |
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3.8 |
|
Additional paid-in capital |
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|
3,045.7 |
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|
2,992.2 |
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Retained earnings |
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|
5,392.1 |
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|
4,946.0 |
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Treasury stock, 10,050,071 shares and 9,050,071 shares at March
31, 2018 and September 30, 2017, respectively, at cost |
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(242.8 |
) |
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(194.9 |
) |
Stockholders’ equity |
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8,198.9 |
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|
7,747.1 |
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Noncontrolling interests |
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173.0 |
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0.5 |
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Total equity |
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8,371.9 |
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|
7,747.6 |
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Total liabilities and equity |
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$ |
13,218.1 |
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$ |
12,184.6 |
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D.R. HORTON, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(UNAUDITED) |
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Three Months Ended
March 31, |
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Six Months Ended
March 31, |
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2018 |
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2017 |
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2018 |
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2017 |
|
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(In millions, except per share data) |
Revenues |
|
|
$ |
3,794.7 |
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|
|
$ |
3,251.3 |
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|
$ |
7,127.6 |
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$ |
6,155.5 |
|
Cost of sales |
|
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|
2,961.6 |
|
|
|
|
2,549.9 |
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|
|
|
5,541.8 |
|
|
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|
4,817.8 |
|
Selling, general and administrative expense |
|
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|
400.9 |
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|
355.2 |
|
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|
785.1 |
|
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|
681.0 |
|
Equity in earnings of unconsolidated entities |
|
|
|
(0.4 |
) |
|
|
|
— |
|
|
|
|
|
(2.7 |
) |
|
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|
— |
|
Gain on sale of assets |
|
|
|
(1.1 |
) |
|
|
|
— |
|
|
|
|
|
(14.5 |
) |
|
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|
— |
|
Other (income) expense |
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|
(11.1 |
) |
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|
(7.7 |
) |
|
|
|
|
(18.2 |
) |
|
|
|
(15.4 |
) |
Income before income taxes |
|
|
|
444.8 |
|
|
|
|
353.9 |
|
|
|
|
|
836.1 |
|
|
|
|
672.1 |
|
Income tax expense |
|
|
|
94.0 |
|
|
|
|
124.7 |
|
|
|
|
|
296.4 |
|
|
|
|
236.0 |
|
Net income |
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|
|
350.8 |
|
|
|
|
229.2 |
|
|
|
|
|
539.7 |
|
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|
436.1 |
|
Net loss attributable to noncontrolling interests |
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|
(0.2 |
) |
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|
— |
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|
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(0.6 |
) |
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|
— |
|
Net income attributable to D.R. Horton, Inc. |
|
|
$ |
351.0 |
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|
$ |
229.2 |
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$ |
540.3 |
|
|
|
$ |
436.1 |
|
Basic: |
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Net income per share |
|
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$ |
0.93 |
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$ |
0.61 |
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|
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$ |
1.44 |
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$ |
1.17 |
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Weighted average number of common shares |
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|
376.8 |
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|
374.4 |
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|
376.3 |
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|
373.8 |
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Diluted: |
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Net income per share |
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$ |
0.91 |
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$ |
0.60 |
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$ |
1.41 |
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$ |
1.15 |
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Adjusted weighted average number of common shares |
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|
383.9 |
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|
|
|
378.9 |
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|
|
383.8 |
|
|
|
|
378.1 |
|
Other Consolidated Financial Data: |
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Interest charged to cost of sales |
|
|
$ |
32.0 |
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|
|
$ |
37.3 |
|
|
|
|
$ |
60.6 |
|
|
|
$ |
72.0 |
|
Depreciation and amortization |
|
|
$ |
16.9 |
|
|
|
$ |
12.9 |
|
|
|
|
$ |
33.1 |
|
|
|
$ |
27.3 |
|
Interest incurred |
|
|
$ |
31.8 |
|
|
|
$ |
33.5 |
|
|
|
|
$ |
62.8 |
|
|
|
$ |
67.0 |
|
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|
|
|
|
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|
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|
|
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D.R. HORTON, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(UNAUDITED) |
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|
Six Months Ended
March 31, |
|
|
|
2018 |
|
|
2017 |
|
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|
(In millions) |
OPERATING ACTIVITIES |
|
|
|
|
|
|
Net income |
|
|
$ |
539.7 |
|
|
|
$ |
436.1 |
|
Adjustments to reconcile net income to net cash used in operating
activities: |
|
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|
|
|
|
Depreciation and amortization |
|
|
|
33.1 |
|
|
|
|
27.3 |
|
Amortization of discounts and fees |
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|
|
2.4 |
|
|
|
|
2.6 |
|
Stock based compensation expense |
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|
|
31.0 |
|
|
|
|
26.1 |
|
Equity in earnings of unconsolidated entities |
|
|
|
(2.7 |
) |
|
|
|
— |
|
Distributions of earnings of unconsolidated entities |
|
|
|
0.2 |
|
|
|
|
— |
|
Excess income tax benefit from employee stock awards |
|
|
|
— |
|
|
|
|
(8.7 |
) |
Deferred income taxes |
|
|
|
145.0 |
|
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|
|
24.1 |
|
Inventory and land option charges |
|
|
|
33.8 |
|
|
|
|
14.5 |
|
Gain on sale of assets |
|
|
|
(14.5 |
) |
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|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Increase in construction in progress and finished homes |
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|
|
(514.5 |
) |
|
|
|
(603.5 |
) |
Increase in residential land and lots – developed, under
development, held for development and held for sale |
|
|
|
(271.5 |
) |
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|
|
(96.3 |
) |
Decrease (increase) in other assets |
|
|
|
4.4 |
|
|
|
|
(29.9 |
) |
(Increase) decrease in mortgage loans held for sale |
|
|
|
(70.7 |
) |
|
|
|
75.5 |
|
Decrease in accounts payable, accrued expenses and other
liabilities |
|
|
|
(14.5 |
) |
|
|
|
(3.5 |
) |
Net cash used in operating activities |
|
|
|
(98.8 |
) |
|
|
|
(135.7 |
) |
INVESTING ACTIVITIES |
|
|
|
|
|
|
Expenditures for property and equipment |
|
|
|
(79.0 |
) |
|
|
|
(57.5 |
) |
Proceeds from sale of assets |
|
|
|
253.4 |
|
|
|
|
— |
|
Increase in restricted cash |
|
|
|
(38.9 |
) |
|
|
|
(8.9 |
) |
Investment in unconsolidated entities |
|
|
|
(0.1 |
) |
|
|
|
— |
|
Return of investment in unconsolidated entities |
|
|
|
15.2 |
|
|
|
|
— |
|
Net principal decrease of other mortgage loans and real estate owned |
|
|
|
— |
|
|
|
|
1.0 |
|
Purchases of debt securities collateralized by residential real
estate |
|
|
|
— |
|
|
|
|
(3.9 |
) |
Payments related to business acquisitions, net of cash acquired |
|
|
|
(158.1 |
) |
|
|
|
(4.1 |
) |
Net cash used in investing activities |
|
|
|
(7.5 |
) |
|
|
|
(73.4 |
) |
FINANCING ACTIVITIES |
|
|
|
|
|
|
Proceeds from notes payable |
|
|
|
1,913.6 |
|
|
|
|
— |
|
Repayment of notes payable |
|
|
|
(1,752.5 |
) |
|
|
|
(0.5 |
) |
Advances (payments) on mortgage repurchase facility, net |
|
|
|
69.8 |
|
|
|
|
(54.0 |
) |
Proceeds from stock associated with certain employee benefit plans |
|
|
|
32.7 |
|
|
|
|
24.7 |
|
Excess income tax benefit from employee stock awards |
|
|
|
— |
|
|
|
|
8.7 |
|
Cash paid for shares withheld for taxes |
|
|
|
(10.3 |
) |
|
|
|
(5.1 |
) |
Cash dividends paid |
|
|
|
(94.1 |
) |
|
|
|
(74.7 |
) |
Repurchases of common stock |
|
|
|
(47.9 |
) |
|
|
|
— |
|
Distributions to noncontrolling interests, net |
|
|
|
(2.0 |
) |
|
|
|
— |
|
Net cash provided by (used in) financing activities |
|
|
|
109.3 |
|
|
|
|
(100.9 |
) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
|
|
3.0 |
|
|
|
|
(310.0 |
) |
Cash and cash equivalents at beginning of period |
|
|
|
1,007.8 |
|
|
|
|
1,303.2 |
|
Cash and cash equivalents at end of period |
|
|
$ |
1,010.8 |
|
|
|
$ |
993.2 |
|
|
|
|
|
|
|
|
|
|
| |
D.R. HORTON, INC. |
SEGMENT INFORMATION |
(UNAUDITED) |
| | |
|
| | | March 31, 2018 |
| | | Homebuilding |
|
| Forestar (1) |
|
| Financial Services |
|
| Other (2) |
|
| Eliminations (3) |
|
| Other Adjustments (4) |
|
| Consolidated |
| | | (In millions) |
Assets
| | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
| | |
$
|
528.9
| | |
$
|
436.4
| | |
$
|
29.1
| | |
$
|
16.4
| | |
$
|
—
| | | |
$
|
—
| | | |
$
|
1,010.8
|
Restricted cash
| | | |
9.4
| | | |
40.0
| | | |
6.0
| | | |
—
| | | |
—
| | | | |
—
| | | | |
55.4
|
Inventories:
| | | | | | | | | | | | | | | | | | | | | |
—
|
Construction in progress and finished homes
| | | |
5,119.6
| | | |
—
| | | |
—
| | | |
—
| | | |
—
| | | | |
—
| | | | |
5,119.6
|
Residential land and lots — developed and under development
| | |
|
4,720.0
| | |
|
261.7
| | |
|
—
| | |
|
—
| | |
|
2.4
|
| | |
|
40.7
|
| | |
|
5,024.8
|
| | | |
9,839.6
| | | |
261.7
| | | |
—
| | | |
—
| | | |
2.4
| | | | |
40.7
| | | | |
10,144.4
|
Investment in unconsolidated entities
| | | |
—
| | | |
17.3
| | | |
—
| | | |
—
| | | |
—
| | | | |
14.8
| | | | |
32.1
|
Mortgage loans held for sale
| | | |
—
| | | |
—
| | | |
658.2
| | | |
—
| | | |
—
| | | | |
—
| | | | |
658.2
|
Deferred income taxes
| | | |
218.2
| | | |
1.4
| | | |
—
| | | |
—
| | | |
—
| | | | |
0.3
| | | | |
219.9
|
Property and equipment, net
| | | |
204.8
| | | |
1.8
| | | |
3.0
| | | |
170.8
| | | |
—
| | | | |
—
| | | | |
380.4
|
Other assets
| | | |
543.6
| | | |
22.5
| | | |
42.0
| | | |
3.9
| | | |
(23.0
|
)
| | | |
18.7
| | | | |
607.7
|
Goodwill
| | |
|
80.0
| | |
|
—
| | |
|
—
| | |
|
—
| | |
|
—
|
| | |
|
29.2
|
| | |
|
109.2
|
| | |
$
|
11,424.5
| | |
$
|
781.1
| | |
$
|
738.3
| | |
$
|
191.1
| | |
$
|
(20.6
|
)
| | |
$
|
103.7
|
| | |
$
|
13,218.1
|
Liabilities
| | | | | | | | | | | | | | | | | | | | | |
Accounts payable
| | |
$
|
568.9
| | |
$
|
2.1
| | |
$
|
3.0
| | |
$
|
8.7
| | |
$
|
—
| | | |
$
|
—
| | | |
$
|
582.7
|
Accrued expenses and other liabilities
| | | |
967.9
| | | |
59.2
| | | |
35.6
| | | |
15.2
| | | |
(23.0
|
)
| | | |
(25.3
|
)
| | | |
1,029.6
|
Notes payable
| | |
|
2,623.1
| | |
|
109.8
| | |
|
489.8
| | |
|
—
| | |
|
—
|
| | |
|
11.2
|
| | |
|
3,233.9
|
| | |
$
|
4,159.9
| | |
$
|
171.1
| | |
$
|
528.4
| | |
$
|
23.9
| | |
$
|
(23.0
|
)
| | |
$
|
(14.1
|
)
| | |
$
|
4,846.2
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
| September 30, 2017 |
| | | Homebuilding |
|
| Financial Services |
|
| Other (2) |
|
| Consolidated |
| | | (In millions) |
Assets
| | | | | | | | | | | | |
Cash and cash equivalents
| | |
$
|
973.0
| | |
$
|
24.1
| | |
$
|
10.7
| | |
$
|
1,007.8
|
Restricted cash
| | | |
9.3
| | | |
7.2
| | | |
—
| | | |
16.5
|
Inventories:
| | | | | | | | | | | | |
Construction in progress and finished homes
| | | |
4,606.0
| | | |
—
| | | |
—
| | | |
4,606.0
|
Residential land and lots — developed, under development, held for
development and held for sale
| | |
|
4,631.1
| | |
|
—
| | |
|
—
| | |
|
4,631.1
|
| | | |
9,237.1
| | | |
—
| | | |
—
| | | |
9,237.1
|
Mortgage loans held for sale
| | | |
—
| | | |
587.3
| | | |
—
| | | |
587.3
|
Deferred income taxes
| | | |
365.0
| | | |
—
| | | |
—
| | | |
365.0
|
Property and equipment, net
| | | |
194.4
| | | |
3.0
| | | |
127.6
| | | |
325.0
|
Other assets
| | | |
518.7
| | | |
42.2
| | | |
5.0
| | | |
565.9
|
Goodwill
| | |
|
80.0
| | |
|
—
| | |
|
—
| | |
|
80.0
|
| | |
$
|
11,377.5
| | |
$
|
663.8
| | |
$
|
143.3
| | |
$
|
12,184.6
|
Liabilities
| | | | | | | | | | | | |
Accounts payable
| | |
$
|
575.6
| | |
$
|
1.5
| | |
$
|
3.3
| | |
$
|
580.4
|
Accrued expenses and other liabilities
| | | |
933.1
| | | |
35.6
| | | |
16.3
| | | |
985.0
|
Notes payable
| | |
|
2,451.6
| | |
|
420.0
| | |
|
—
| | |
|
2,871.6
|
| | |
$
|
3,960.3
| | |
$
|
457.1
| | |
$
|
19.6
| | |
$
|
4,437.0
|
__________________
|
(1)
|
|
Results are presented on Forestar’s historical cost basis.
|
(2)
| |
Amounts represent the aggregate balances of certain subsidiaries
that are immaterial for separate reporting.
|
(3)
| |
Amounts represent the elimination of intercompany transactions
with Forestar and the reclassification of Forestar’s interest
expense to inventory.
|
(4)
| |
Amounts represent purchase accounting adjustments related to the
Forestar acquisition.
|
| |
|
|
|
| |
D.R. HORTON, INC. |
SEGMENT INFORMATION |
(UNAUDITED) |
| | |
|
| | | Three Months Ended March 31, 2018 |
| | | Homebuilding |
|
| Forestar (1) |
|
| Financial Services |
|
| Other (2) |
|
| Eliminations (3) |
|
| Other Adjustments (4) |
|
| Consolidated |
| | | (In millions) |
Revenues:
| | | | | | | | | | | | | | | | |
| | | | |
Home sales
| | |
$
|
3,672.1
| | | |
$
|
—
| | | |
$
|
—
| | | |
$
|
—
| | | |
$
|
—
| | | |
$
|
—
| | | |
$
|
3,672.1
| |
Land/lot sales and other
| | | |
13.6
| | | | |
22.6
| | | | |
—
| | | | |
—
| | | | |
(8.5
|
)
| | | |
—
| | | | |
27.7
| |
Financial services
| | |
|
—
|
| | |
|
—
|
| | |
|
94.9
|
| | |
|
—
|
| | |
|
—
|
| | |
|
—
|
| | |
|
94.9
|
|
| | |
|
3,685.7
|
| | |
|
22.6
|
| | |
|
94.9
|
| | |
|
—
|
| | |
|
(8.5
|
)
| | |
|
—
|
| | |
|
3,794.7
|
|
Cost of sales:
| | | | | | | | | | | | | | | | | | | | | |
Home sales
| | | |
2,907.5
| | | | |
—
| | | | |
—
| | | | |
—
| | | | |
—
| | | | |
—
| | | | |
2,907.5
| |
Land/lot sales
| | | |
12.0
| | | | |
16.2
| | | | |
—
| | | | |
—
| | | | |
(6.7
|
)
| | | |
2.5
| | | | |
24.0
| |
Inventory and land option charges
| | |
|
30.1
|
| | |
|
—
|
| | |
|
—
|
| | |
|
—
|
| | |
|
—
|
| | |
|
—
|
| | |
|
30.1
|
|
| | |
|
2,949.6
|
| | |
|
16.2
|
| | |
|
—
|
| | |
|
—
|
| | |
|
(6.7
|
)
| | |
|
2.5
|
| | |
|
2,961.6
|
|
Selling, general and administrative expense
| | | |
322.7
| | | | |
5.6
| | | | |
66.7
| | | | |
5.8
| | | | |
—
| | | | |
0.1
| | | | |
400.9
| |
Equity in earnings of unconsolidated entities
| | | |
—
| | | | |
(1.5
|
)
| | | |
—
| | | | |
—
| | | | |
—
| | | | |
1.1
| | | | |
(0.4
|
)
|
Gain on sale of assets
| | | |
—
| | | | |
(2.7
|
)
| | | |
—
| | | | |
—
| | | | |
—
| | | | |
1.6
| | | | |
(1.1
|
)
|
Interest expense
| | | |
—
| | | | |
2.1
| | | | |
—
| | | | |
—
| | | | |
(2.1
|
)
| | | |
—
| | | | |
—
| |
Other (income) expense
| | |
|
(2.6
|
)
| | |
|
(1.7
|
)
| | |
|
(3.2
|
)
| | |
|
(3.6
|
)
| | |
|
—
|
| | |
|
—
|
| | |
|
(11.1
|
)
|
Income before income taxes
| | |
$
|
416.0
|
| | |
$
|
4.6
|
| | |
$
|
31.4
|
| | |
$
|
(2.2
|
)
| | |
$
|
0.3
|
| | |
$
|
(5.3
|
)
| | |
$
|
444.8
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
| Six Months Ended March 31, 2018 |
| | | Homebuilding |
|
| Forestar (1) |
|
| Financial Services |
|
| Other (2) |
|
| Eliminations (3) |
|
| Other Adjustments (4) |
|
| Consolidated |
| | | (In millions) |
Revenues:
| | | | | | | | | | | | | | | | |
| | | | |
Home sales
| | |
$
|
6,856.6
| | | |
$
|
—
| | | |
$
|
—
| | | |
$
|
—
| | | |
$
|
—
| | | |
$
|
—
| | | |
$
|
6,856.6
| |
Land/lot sales and other
| | | |
50.0
| | | | |
53.5
| | | | |
—
| | | | |
—
| | | | |
(8.5
|
)
| | | |
—
| | | | |
95.0
| |
Financial services
| | |
|
—
|
| | |
|
—
|
| | |
|
176.0
|
| | |
|
—
|
| | |
|
—
|
| | |
|
—
|
| | |
|
176.0
|
|
| | |
|
6,906.6
|
| | |
|
53.5
|
| | |
|
176.0
|
| | |
|
—
|
| | |
|
(8.5
|
)
| | |
|
—
|
| | |
|
7,127.6
|
|
Cost of sales:
| | | | | | | | | | | | | | | | | | | | | |
Home sales
| | | |
5,429.0
| | | | |
—
| | | | |
—
| | | | |
—
| | | | |
—
| | | | |
—
| | | | |
5,429.0
| |
Land/lot sales
| | | |
43.3
| | | | |
35.5
| | | | |
—
| | | | |
—
| | | | |
(6.7
|
)
| | | |
6.9
| | | | |
79.0
| |
Inventory and land option charges
| | |
|
33.8
|
| | |
|
—
|
| | |
|
—
|
| | |
|
—
|
| | |
|
—
|
| | |
|
—
|
| | |
|
33.8
|
|
| | |
|
5,506.1
|
| | |
|
35.5
|
| | |
|
—
|
| | |
|
—
|
| | |
|
(6.7
|
)
| | |
|
6.9
|
| | |
|
5,541.8
|
|
Selling, general and administrative expense
| | | |
627.5
| | | | |
19.1
| | | | |
128.4
| | | | |
9.8
| | | | |
—
| | | | |
0.3
| | | | |
785.1
| |
Equity in earnings of unconsolidated entities
| | | |
—
| | | | |
(9.1
|
)
| | | |
—
| | | | |
—
| | | | |
—
| | | | |
6.4
| | | | |
(2.7
|
)
|
Gain on sale of assets
| | | |
(13.4
|
)
| | | |
(2.7
|
)
| | | |
—
| | | | |
—
| | | | |
—
| | | | |
1.6
| | | | |
(14.5
|
)
|
Interest expense
| | | |
—
| | | | |
4.2
| | | | |
—
| | | | |
—
| | | | |
(4.2
|
)
| | | |
—
| | | | |
—
| |
Other (income) expense
| | |
|
(3.4
|
)
| | |
|
(2.2
|
)
| | |
|
(6.1
|
)
| | |
|
(6.5
|
)
| | |
|
—
|
| | |
|
—
|
| | |
|
(18.2
|
)
|
Income before income taxes
| | |
$
|
789.8
|
| | |
$
|
8.7
|
| | |
$
|
53.7
|
| | |
$
|
(3.3
|
)
| | |
$
|
2.4
|
| | |
$
|
(15.2
|
)
| | |
$
|
836.1
|
|
Summary Cash Flow Information:
| | | | | | | | | | | | | | | | | | | | | |
Cash provided by (used in) operating activities
| | |
$
|
90.7
|
| | |
$
|
(150.2
|
)
| | |
$
|
(30.7
|
)
| | |
$
|
(0.5
|
)
| | |
|
—
|
| | |
$
|
(8.1
|
)
| | |
$
|
(98.8
|
)
|
__________________
|
(1)
|
|
Results are presented from the date of acquisition and on Forestar’s
historical cost basis.
|
(2)
| |
Amounts represent the aggregate balances of certain subsidiaries
that are immaterial for separate reporting.
|
(3)
| |
Amounts represent the elimination of intercompany transactions
with Forestar and the reclassification of Forestar’s interest
expense to inventory.
|
(4)
| |
Amounts represent purchase accounting adjustments related to the
Forestar acquisition.
|
| |
|
|
|
| |
D.R. HORTON, INC. |
SEGMENT INFORMATION |
(UNAUDITED) |
| | |
|
| | | Three Months Ended March 31, 2017 |
| | | Homebuilding |
|
| Financial Services |
|
| Other (1) |
|
| Consolidated |
| | | (In millions) |
Revenues:
| | | | | | | | | | | | |
Home sales
| | |
$
|
3,158.1
| | | |
$
|
—
| | | |
$
|
—
| | | |
$
|
3,158.1
| |
Land/lot sales and other
| | | |
6.3
| | | | |
—
| | | | |
—
| | | | |
6.3
| |
Financial services
| | |
|
—
|
| | |
|
86.9
|
| | |
|
—
|
| | |
|
86.9
|
|
| | |
|
3,164.4
|
| | |
|
86.9
|
| | |
|
—
|
| | |
|
3,251.3
|
|
Cost of sales:
| | | | | | | | | | | | |
Home sales
| | | |
2,532.1
| | | | |
—
| | | | |
—
| | | | |
2,532.1
| |
Land/lot sales
| | | |
5.6
| | | | |
—
| | | | |
—
| | | | |
5.6
| |
Inventory and land option charges
| | |
|
12.2
|
| | |
|
—
|
| | |
|
—
|
| | |
|
12.2
|
|
| | |
|
2,549.9
|
| | |
|
—
|
| | |
|
—
|
| | |
|
2,549.9
|
|
Selling, general and administrative expense
| | | |
294.5
| | | | |
58.2
| | | | |
2.5
| | | | |
355.2
| |
Other (income) expense
| | |
|
(2.4
|
)
| | |
|
(3.5
|
)
| | |
|
(1.8
|
)
| | |
|
(7.7
|
)
|
Income before income taxes
| | |
$
|
322.4
|
| | |
$
|
32.2
|
| | |
$
|
(0.7
|
)
| | |
$
|
353.9
|
|
| | |
|
| | |
|
| | | Six Months Ended March 31, 2017 |
| | | Homebuilding | | | Financial Services | | | Other (1) | | | Consolidated |
| | | (In millions) |
Revenues:
| | | | | | | | | | | | |
Home sales
| | |
$
|
5,955.8
| | | |
$
|
—
| | | |
$
|
—
| | | |
$
|
5,955.8
| |
Land/lot sales and other
| | | |
34.7
| | | | |
—
| | | | |
—
| | | | |
34.7
| |
Financial services
| | |
|
—
|
| | |
|
165.0
|
| | |
|
—
|
| | |
|
165.0
|
|
| | |
|
5,990.5
|
| | |
|
165.0
|
| | |
|
—
|
| | |
|
6,155.5
|
|
Cost of sales:
| | | | | | | | | | | | |
Home sales
| | | |
4,776.9
| | | | |
—
| | | | |
—
| | | | |
4,776.9
| |
Land/lot sales
| | | |
26.4
| | | | |
—
| | | | |
—
| | | | |
26.4
| |
Inventory and land option charges
| | |
|
14.5
|
| | |
|
—
|
| | |
|
—
|
| | |
|
14.5
|
|
| | |
|
4,817.8
|
| | |
|
—
|
| | |
|
—
|
| | |
|
4,817.8
|
|
Selling, general and administrative expense
| | | |
562.9
| | | | |
112.9
| | | | |
5.2
| | | | |
681.0
| |
Other (income) expense
| | |
|
(6.5
|
)
| | |
|
(6.7
|
)
| | |
|
(2.2
|
)
| | |
|
(15.4
|
)
|
Income before income taxes
| | |
$
|
616.3
|
| | |
$
|
58.8
|
| | |
$
|
(3.0
|
)
| | |
$
|
672.1
|
|
Summary Cash Flow Information:
| | | | | | | | | | | | |
Cash (used in) provided by operating activities
| | |
$
|
(240.4
|
)
| | |
$
|
108.6
|
| | |
$
|
(3.9
|
)
| | |
$
|
(135.7
|
)
|
__________________ |
(1) |
|
Amounts represent the aggregate balances of certain subsidiaries
that are immaterial for separate reporting. |
|
|
|
|
D.R. HORTON, INC. |
ORDERS, CLOSINGS AND BACKLOG |
($'s in millions) |
|
NET SALES ORDERS |
|
|
|
Three Months Ended March 31, |
|
|
|
Six Months Ended March 31, |
|
|
|
2018 |
|
|
2017 |
|
|
|
2018 |
|
|
2017 |
|
|
|
Homes |
|
Value |
|
|
Homes |
|
Value |
|
|
|
Homes |
|
Value |
|
|
Homes |
|
Value |
East |
|
|
1,991 |
|
$ |
566.8 |
|
|
1,791 |
|
$ |
513.1 |
|
|
|
3,421 |
|
$ |
965.3 |
|
|
2,937 |
|
$ |
844.1 |
Midwest |
|
|
790 |
|
|
306.5 |
|
|
643 |
|
|
249.2 |
|
|
|
1,167 |
|
|
451.5 |
|
|
1,006 |
|
|
392.4 |
Southeast |
|
|
5,054 |
|
|
1,352.6 |
|
|
4,470 |
|
|
1,167.1 |
|
|
|
8,686 |
|
|
2,329.0 |
|
|
7,618 |
|
|
1,992.2 |
South Central |
|
|
4,788 |
|
|
1,200.5 |
|
|
4,329 |
|
|
1,071.5 |
|
|
|
7,814 |
|
|
1,961.2 |
|
|
7,167 |
|
|
1,782.6 |
Southwest |
|
|
889 |
|
|
211.7 |
|
|
745 |
|
|
172.8 |
|
|
|
1,590 |
|
|
376.8 |
|
|
1,203 |
|
|
279.5 |
West |
|
|
2,316 |
|
|
1,103.4 |
|
|
2,013 |
|
|
1,015.5 |
|
|
|
3,903 |
|
|
1,880.3 |
|
|
3,301 |
|
|
1,662.3 |
|
|
|
15,828 |
|
$ |
4,741.5 |
|
|
13,991 |
|
$ |
4,189.2 |
|
|
|
26,581 |
|
$ |
7,964.1 |
|
|
23,232 |
|
$ |
6,953.1 |
|
|
HOMES CLOSED |
|
|
|
Three Months Ended March 31, |
|
|
|
Six Months Ended March 31, |
|
|
|
2018 |
|
|
2017 |
|
|
|
2018 |
|
|
2017 |
|
|
|
Homes |
|
Value |
|
|
Homes |
|
Value |
|
|
|
Homes |
|
Value |
|
|
Homes |
|
Value |
East |
|
|
1,531 |
|
$ |
435.4 |
|
|
1,309 |
|
$ |
372.6 |
|
|
|
2,919 |
|
$ |
828.4 |
|
|
2,362 |
|
$ |
678.4 |
Midwest |
|
|
514 |
|
|
203.6 |
|
|
430 |
|
|
168.0 |
|
|
|
922 |
|
|
365.0 |
|
|
829 |
|
|
317.6 |
Southeast |
|
|
3,935 |
|
|
1,041.0 |
|
|
3,695 |
|
|
968.7 |
|
|
|
7,679 |
|
|
2,029.7 |
|
|
7,032 |
|
|
1,851.2 |
South Central |
|
|
3,636 |
|
|
913.3 |
|
|
3,254 |
|
|
815.0 |
|
|
|
6,814 |
|
|
1,721.6 |
|
|
6,157 |
|
|
1,553.6 |
Southwest |
|
|
713 |
|
|
168.8 |
|
|
532 |
|
|
126.7 |
|
|
|
1,405 |
|
|
324.6 |
|
|
987 |
|
|
231.4 |
West |
|
|
1,952 |
|
|
910.0 |
|
|
1,465 |
|
|
707.1 |
|
|
|
3,330 |
|
|
1,587.3 |
|
|
2,722 |
|
|
1,323.6 |
|
|
|
12,281 |
|
$ |
3,672.1 |
|
|
10,685 |
|
$ |
3,158.1 |
|
|
|
23,069 |
|
$ |
6,856.6 |
|
|
20,089 |
|
$ |
5,955.8 |
|
|
SALES ORDER BACKLOG |
|
|
|
|
As of March 31, |
|
|
|
|
2018 |
|
|
2017 |
|
|
|
|
Homes |
|
Value |
|
|
Homes |
|
Value |
East |
|
|
|
2,046 |
|
$ |
589.7 |
|
|
1,876 |
|
$ |
548.7 |
Midwest |
|
|
|
664 |
|
|
258.9 |
|
|
647 |
|
|
258.8 |
Southeast |
|
|
|
5,064 |
|
|
1,404.2 |
|
|
4,639 |
|
|
1,262.7 |
South Central |
|
|
|
4,956 |
|
|
1,257.8 |
|
|
4,850 |
|
|
1,247.1 |
Southwest |
|
|
|
1,028 |
|
|
244.8 |
|
|
871 |
|
|
198.8 |
West |
|
|
|
2,083 |
|
|
1,078.1 |
|
|
1,735 |
|
|
919.2 |
|
|
|
|
15,841 |
|
$ |
4,833.5 |
|
|
14,618 |
|
$ |
4,435.3 |

View source version on businesswire.com: https://www.businesswire.com/news/home/20180426005540/en/
D.R. Horton, Inc.
Jessica Hansen, 817-390-8200
Vice President
of Investor Relations
[email protected]
Source: D.R. Horton, Inc.