D.R. Horton, Inc. Reports Select Preliminary 2018 Fourth Quarter and Fiscal Year Results
Company to Release Full 2018 Fourth Quarter and Fiscal Year Results
on November 8, 2018
Select Fiscal 2018 Fourth Quarter Highlights - comparisons to the
prior year quarter
-
Homes closed increased 11% to 14,674 homes and 9% in value to $4.4
billion
-
Net sales orders increased 11% to 11,509 homes and 10% in value to
$3.4 billion
Select Fiscal 2018 Highlights - comparisons to the prior year
-
Homes closed increased 13% to 51,857 homes and 14% in value to $15.5
billion
-
Net sales orders increased 13% to 52,740 homes and 13% in value to
$15.8 billion
-
Homes in inventory increased 13% to 29,700 homes
ARLINGTON, Texas--(BUSINESS WIRE)--
D.R.
Horton, Inc. (NYSE:DHI), America’s Builder, today announced select
preliminary results for its fourth quarter and fiscal year ended
September 30, 2018 to provide an update relative to reported market
conditions and recent events.
The Company’s homes closed in the fourth quarter of fiscal 2018
increased 11% to 14,674 homes, compared to 13,165 homes in the same
quarter of fiscal 2017. Home sales revenue for the quarter increased 9%
to $4.4 billion from $4.0 billion in the same quarter of fiscal 2017.
For the fiscal year ended September 30, 2018, homes closed increased 13%
to 51,857 homes, compared to 45,751 homes in fiscal 2017. Home sales
revenue in fiscal 2018 increased 14% to $15.5 billion from $13.7 billion
in fiscal 2017.
Net sales orders for the fourth quarter ended September 30, 2018
increased 11% to 11,509 homes from 10,333 homes in the year-ago quarter,
and the value of net sales orders increased 10% to $3.4 billion from
$3.1 billion. The Company’s cancellation rate (cancelled sales orders
divided by gross sales orders) for the fourth quarter of fiscal 2018 was
26%, compared to 25% in same quarter of fiscal 2017. Net sales orders
for the fiscal year ended September 30, 2018 increased 13% to 52,740
homes from 46,605 homes in fiscal 2017, and the value of net sales
orders increased 13% to $15.8 billion from $13.9 billion. The Company's
cancellation rate for fiscal 2018 was 22%, unchanged from fiscal 2017.
At September 30, 2018, the Company’s sales order backlog of homes
increased 8% to 13,371 homes and 8% in value to $4.0 billion, compared
to 12,329 homes and $3.7 billion at September 30, 2017.
Donald R. Horton, Chairman of the Board, said, “The D.R. Horton team
delivered strong fiscal year 2018 results. Our fourth quarter homes
closed increased 11%, and sales increased 11% on a 3% decline in active
communities. Sales absorptions increased across all of our brands and
geographic regions compared to the prior year, showing continued solid
demand for our product offerings through September.
“We are confident in our team’s ability to drive growth as economic and
housing fundamentals remain favorable, inventory levels are low and we
continue to see good demand in our markets, particularly at affordable
price points. With almost 30,000 homes in inventory at the end of the
year and an attractive lot position, we continue to expect strong
performance over the next year and are well-positioned to grow our
consolidated revenues at a double-digit pace.”
Supplemental Data
Select updated supplemental data including brand stratification and
changes in average active selling communities by region is posted under
the presentations section of our investor relations site at investor.drhorton.com.
Additional supplemental data will be posted to the site after our
earnings call on November 8, 2018.
Conference Call and Webcast Details
The Company will release full financial results for its fourth quarter
and fiscal year ended September 30, 2018 on Thursday, November 8, 2018
before the market opens. The Company will host a conference call that
morning at 8:30 a.m. Eastern Time (ET). The dial-in number is
877-407-8033. Participants are encouraged to call in five minutes before
the call begins (8:25 a.m. ET). The call will also be webcast from the
Company’s website at investor.drhorton.com.
A replay of the call will be available after 2:00 p.m. ET on Thursday,
November 8, 2018 at 877-481-4010. When calling, please reference
conference ID #37936. The replay will also be available from the
Company’s website at investor.drhorton.com.
The replay will be available through midnight ET on November 15, 2018.
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 80 markets in
26 states across the United States and closed 51,857 homes during its
fiscal year ended September 30, 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 we are confident in our team’s ability to
drive growth as economic and housing fundamentals remain favorable,
inventory levels are low and we continue to see good demand in our
markets, particularly at affordable price points. The forward-looking
statements also include that with almost 30,000 homes in inventory at
the end of the year and an attractive lot position, we continue to
expect strong performance over the next year and are well-positioned to
grow our consolidated revenues at a double-digit pace.
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.
|
|
D.R. HORTON, INC. |
($’s in millions) |
|
NET SALES ORDERS |
|
|
| Three Months Ended September 30, |
|
|
| Fiscal Year Ended September 30, |
| | | 2018 |
|
| 2017 | | | | 2018 |
|
| 2017 |
| | | Homes |
| Value | | | Homes |
| Value | | | | Homes |
| Value | | | Homes |
| Value |
East
| | | 1,625 | | $ | 465.7 | | |
1,460
| | $411.0 | | | | 6,994 | | $ | 1,988.8 | | |
6,039
| |
$
|
1,708.9
|
Midwest
| | | 496 | | | 191.6 | | |
378
| |
152.3
| | | | 2,209 | | | 864.3 | | |
1,841
| | |
722.6
|
Southeast
| | | 3,972 | | | 1,058.1 | | |
3,556
| |
925.7
| | | | 17,380 | | | 4,640.7 | | |
15,575
| | |
4,068.9
|
South Central
| | | 3,025 | | | 755.3 | | |
2,516
| |
630.1
| | | | 15,317 | | | 3,849.8 | | |
13,374
| | |
3,339.1
|
Southwest
| | | 672 | | | 177.1 | | |
674
| |
154.3
| | | | 3,179 | | | 784.4 | | |
2,693
| | |
620.5
|
West
| | | 1,719 | |
| 782.6 | | |
1,749
| |
842.7
| | | | 7,661 | |
| 3,632.7 | | |
7,083
| |
|
3,481.2
|
| | | 11,509 | | $ | 3,430.4 | | |
10,333
| | $3,116.1 | | | | 52,740 | | $ | 15,760.7 | | |
46,605
| |
$
|
13,941.2
|
|
|
HOMES CLOSED |
| | | Three Months Ended September 30, | | | | Fiscal Year Ended September 30, |
| | | 2018 | | | 2017 | | | | 2018 | | | 2017 |
| | | Homes | | Value | | | Homes | | Value | | | | Homes | | Value | | | Homes | | Value |
East
| | | 1,897 | | $ | 535.5 | | |
1,710
| | $478.7 | | | | 6,697 | | $ | 1,893.0 | | |
5,796
| |
$
|
1,639.1
|
Midwest
| | | 610 | | | 236.9 | | |
552
| |
214.5
| | | | 2,186 | | | 857.5 | | |
1,892
| | |
734.1
|
Southeast
| | | 4,817 | | | 1,280.8 | | |
4,209
| |
1,098.4
| | | | 17,216 | | | 4,573.3 | | |
15,571
| | |
4,085.7
|
South Central
| | | 4,117 | | | 1,035.9 | | |
3,497
| |
880.6
| | | | 14,940 | | | 3,760.4 | | |
13,258
| | |
3,339.1
|
Southwest
| | | 921 | | | 220.2 | | |
861
| |
194.5
| | | | 3,094 | | | 725.4 | | |
2,505
| | |
578.5
|
West
| | | 2,312 | |
| 1,070.6 | | |
2,336
| |
1,168.4
| | | | 7,724 | |
| 3,692.4 | | |
6,729
| |
|
3,276.7
|
| | | 14,674 | | $ | 4,379.9 | | |
13,165
| | $4,035.1 | | | | 51,857 | | $ | 15,502.0 | | |
45,751
| |
$
|
13,653.2
|
|
|
SALES ORDER BACKLOG |
| | | | As of September 30, |
| | | | 2018 | | | 2017 |
| | | | Homes | | Value | | | Homes | | Value |
East
| | | | 1,841 | | $ | 548.6 | | |
1,544
| |
$
|
452.8
|
Midwest
| | | | 442 | | | 179.2 | | |
419
| | |
172.5
|
Southeast
| | | | 4,221 | | | 1,172.3 | | |
4,057
| | |
1,104.9
|
South Central
| | | | 4,492 | | | 1,151.8 | | |
3,956
| | |
1,018.1
|
Southwest
| | | | 928 | | | 251.7 | | |
843
| | |
192.7
|
West
| | | | 1,447 | |
| 725.3 | | |
1,510
| |
|
785.0
|
| | | | 13,371 | | $ | 4,028.9 | | |
12,329
| |
$
|
3,726.0
|
| | | | | | | | | | |
|

View source version on businesswire.com: https://www.businesswire.com/news/home/20181009005294/en/
D.R. Horton, Inc.
Jessica Hansen, 817-390-8200
Vice President
of Investor Relations
[email protected]
Source: D.R. Horton, Inc.