Fourth Quarter Highlights
- Net income increased 52% to $349.6 million
- Earnings per diluted share increased 50% to $1.47 per diluted share
- Consolidated revenue increased 23% to $3.5 billion
- Net sales orders increased 17% to $2.8 billion (11,105 homes)
Fiscal Year 2004 Highlights
- Net income increased 56% to $975.1 million
- Earnings per diluted share increased 51% to $4.11 per diluted share
- Consolidated revenue increased 24% to $10.8 billion
- Gross margin on homebuilding revenue improved 270 basis points to 23.1%
- Homes closed increased 21% to 43,567 homes, the first time a builder
has closed more than 40,000 homes in the United States in a fiscal year
- Net sales orders increased 24% to $11.4 billion on 45,263 homes sold,
the first time a builder has sold more than 45,000 homes in the United
States in a fiscal year
- Sales contract backlog increased 25% to $4.6 billion (17,184 homes)
- Stockholders' equity increased 31% to $4.0 billion
- Homebuilding debt to total capitalization (net of cash) improved 110
basis points to 38.9%
ARLINGTON, Texas, Nov. 10 /PRNewswire-FirstCall/ -- D.R. Horton, Inc.
(NYSE: DHI) Wednesday (November 10, 2004), reported the highest quarterly and
annual earnings in Company history. Net income for the fourth quarter ended
September 30, 2004 increased 52% to $349.6 million ($1.47 per diluted share),
from $230.7 million ($0.98 per diluted share) for the same quarter of fiscal
2003. Fourth quarter consolidated revenue increased 23% to $3.5 billion, from
$2.9 billion in the fourth quarter of fiscal 2003. Homes closed increased 17%
to 13,452 homes from 11,527 homes in the year ago quarter.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040722/DHILOGO )
For the fiscal year ended September 30, 2004, net income increased 56% to
$975.1 million ($4.11 per diluted share), compared to $626.0 million ($2.73
per diluted share) for fiscal 2003. Consolidated revenue for the year
increased 24% to $10.8 billion, from $8.7 billion for fiscal 2003. Homes
closed increased 21% to 43,567 homes from 35,934 homes in fiscal 2003.
The Company's sales backlog of homes under contract at September 30, 2004
was a fiscal year-end record $4.6 billion (17,184 homes), up 25% from
$3.7 billion (15,488 homes) at September 30, 2003. As previously reported,
net sales orders for the fourth quarter were $2.8 billion (11,105 homes), an
increase of 17% compared to $2.4 billion (10,114 homes) for the same quarter
of fiscal 2003. Net sales orders for fiscal year 2004 increased 24% to
$11.4 billion (45,263 homes), compared to $9.2 billion (38,725 homes) for
fiscal 2003.
The Company expects diluted earnings per share for the quarter ended
December 31, 2004 to be in the range of $0.85 to $0.90 (approximately
237.5 million diluted shares). The Company expects diluted earnings per share
for fiscal year 2005 to be in the range of $4.50 to $4.70 (approximately
238.5 million diluted shares). In fiscal year 2005, the Company expects to
close more than 50,000 homes and generate revenues in excess of $12 billion.
The Company will host a conference call Wednesday, November 10th at
10:00 a.m. EST. The dial-in number is 800-374-9096. The call will also be
webcast from http://www.drhorton.com on the "Investor Relations" page.
Donald R. Horton, Chairman of the Board, said, "Fiscal year 2004 was our
27th consecutive year of growth in earnings and revenues. In addition to
setting Company records, D.R. Horton is establishing industry records. The
Company is the first builder to close more than 40,000 homes and sell more
than 45,000 homes in a year. We have accomplished this leadership position
while continuing to improve our balance sheet. Our shareholders' equity grew
31% to $4.0 billion, contributing to our record low homebuilding net debt to
cap of 38.9%. We finished the year with $480 million in homebuilding cash and
approximately $1.1 billion available on our revolving credit facility, for a
total of approximately $1.6 billion in 'dry powder.'
"We ended the year on an extremely positive note with a 17% organic
increase in our fourth quarter sales and strong sales performances in all of
our regions. Our double-digit sales increase and our record $4.6 billion
backlog position us for a strong start to fiscal year 2005."
Founded in 1978, D.R. Horton, Inc. is engaged in the construction and sale
of high quality homes designed principally for the entry-level and first time
move-up markets. D.R. Horton currently builds and sells homes in 21 states
and 63 markets, with a geographic presence in the Midwest, Mid-Atlantic,
Southeast, Southwest and Western regions of the United States. The Company
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 relate to the Company's expected earnings
per share for the quarter ending December 31, 2004 and fiscal year 2005,
expected fiscal year 2005 revenues and homes closed and the expectation of a
strong start to fiscal year 2005 due to the Company's double-digit sales
increase and record $4.6 billion sales contract backlog. 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:
changes in general economic, real estate and business conditions; changes in
interest rates and the availability of mortgage financing; governmental
regulations and environmental matters; changes in income tax laws affecting
mortgage interest deductibility; the Company's substantial leverage;
competitive conditions within the industry; the availability of capital to the
Company on favorable terms; the Company's ability to integrate acquisitions
and successfully effect the cost savings, operating efficiencies and revenue
enhancements that are believed available and otherwise to successfully effect
its other growth strategies. 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 most recent quarterly reports on Form 10-Q, which are
filed with the Securities and Exchange Commission.
WEBSITE ADDRESS: http://www.DRHORTON.com
D.R. HORTON, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended Fiscal year ended
September 30, September 30,
2003 2004 2003 2004
(In millions, except per share amounts)
Homebuilding:
Revenues
Home sales $2,781.0 $3,410.4 $8,334.1 $10,491.1
Land/lot sales 28.9 49.1 218.0 166.9
2,809.9 3,459.5 8,552.1 10,658.0
Cost of sales
Home sales 2,191.6 2,604.8 6,621.2 8,094.7
Land/lot sales 22.4 30.2 184.6 102.6
2,214.0 2,635.0 6,805.8 8,197.3
Gross profit
Home sales 589.4 805.6 1,712.9 2,396.4
Land/lot sales 6.5 18.9 33.4 64.3
595.9 824.5 1,746.3 2,460.7
Selling, general and
administrative expense 242.6 279.5 817.0 959.0
Interest expense 3.1 --- 5.2 3.4
Other expense (income) 6.4 (2.7) 9.4 (9.9)
Operating income from
homebuilding 343.8 547.7 914.7 1,508.2
Financial services:
Revenues 52.3 51.1 176.0 182.8
Selling, general and
administrative expense 28.7 37.1 98.3 121.0
Interest expense 2.2 1.9 7.4 5.9
Other (income) (6.9) (6.1) (23.2) (18.8)
Operating income from financial
services 28.3 18.2 93.5 74.7
Income before income taxes 372.1 565.9 1,008.2 1,582.9
Provision for income taxes 141.4 216.3 382.2 607.8
Net income $230.7 $349.6 $626.0 $975.1
Amounts per share - basic:
Net income $0.99 $1.50 $2.81 $4.19
Weighted average number of
shares 232.7 233.2 222.8 232.8
Amounts per share - diluted:
Net income $0.98 $1.47 $2.73 $4.11
Weighted average number of
shares 236.6 237.2 229.5 237.0
Other Consolidated Financial Data
Interest amortized to home and
land cost of sales $74.7 $76.0 $219.4 $249.1
Depreciation and amortization $11.8 $15.2 $41.8 $49.6
Interest incurred $62.2 $60.8 $246.9 $242.6
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
As of September 30,
2003 2004
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $542.4 $480.1
Inventories
Finished homes and construction
in progress 2,464.6 2,878.5
Residential lots - developed and
under development 2,506.2 3,529.0
Land held for development 6.5 6.2
Consolidated land inventory not owned 105.0 153.7
5,082.3 6,567.4
Property and equipment (net) 81.7 91.9
Other assets 436.7 576.6
Excess of cost over net assets
acquired (net) 578.9 578.9
6,722.0 8,294.9
Financial services:
Cash and cash equivalents 40.5 37.9
Mortgage loans held for sale 485.5 623.3
Other assets 31.4 29.1
557.4 690.3
$7,279.4 $8,985.2
LIABILITIES
Homebuilding:
Accounts payable and other liabilities $1,131.9 $1,342.1
Notes payable 2,565.2 3,006.5
3,697.1 4,348.6
Financial services:
Accounts payable and other liabilities 17.1 16.8
Notes payable 398.0 492.7
415.1 509.5
4,112.2 4,858.1
Minority interests 135.9 166.4
STOCKHOLDERS' EQUITY
Common stock 1.6 2.4
Additional capital 1,581.7 1,599.9
Unearned compensation (2.2) ---
Retained earnings 1,509.1 2,417.3
Treasury stock (at cost) (58.9) (58.9)
3,031.3 3,960.7
$7,279.4 $8,985.2
D.R. HORTON, INC.
($'s in millions)
NET SALES ORDERS
Three Months Ended September 30,
2003 2004
Units $'s Units $'s
Mid-Atlantic 928 $203.7 1,136 $269.1
Midwest 613 168.0 644 172.0
Southeast 1,214 240.3 1,631 365.0
Southwest 4,138 690.1 4,469 786.6
West 3,221 1,103.9 3,225 1,229.7
10,114 $2,406.0 11,105 $2,822.4
NET SALES ORDERS
Fiscal Year Ended September 30,
2003 2004
Units $'s Units $'s
Mid-Atlantic 3,594 $780.8 4,032 $1,009.7
Midwest 2,067 553.6 2,261 634.5
Southeast 4,528 863.3 6,301 1,375.8
Southwest 15,699 2,614.7 18,146 3,086.7
West 12,837 4,349.9 14,523 5,299.5
38,725 $9,162.3 45,263 $11,406.2
HOMES CLOSED
Three Months Ended September 30,
2003 2004
Units $'s Units $'s
Mid-Atlantic 1,004 $211.1 1,257 $300.4
Midwest 667 178.0 960 257.8
Southeast 1,349 254.1 1,374 290.5
Southwest 4,271 703.6 5,252 872.1
West 4,236 1,434.2 4,609 1,689.6
11,527 $2,781.0 13,452 $3,410.4
HOMES CLOSED
Fiscal Year Ended September 30,
2003 2004
Units $'s Units $'s
Mid-Atlantic 3,245 $674.8 3,894 $888.4
Midwest 2,002 513.2 2,381 643.7
Southeast 4,374 773.9 5,137 1,041.3
Southwest 14,209 2,381.5 18,190 3,012.3
West 12,104 3,990.7 13,965 4,905.4
35,934 $8,334.1 43,567 $10,491.1
SALES CONTRACT BACKLOG
As of September 30,
2003 2004
Units $'s Units $'s
Mid-Atlantic 1,602 $370.9 1,740 $492.2
Midwest 981 278.9 861 269.7
Southeast 1,823 364.1 2,987 698.6
Southwest 6,676 1,120.9 6,632 1,195.3
West 4,406 1,518.6 4,964 1,912.7
15,488 $3,653.4 17,184 $4,568.5
SOURCE D.R. Horton, Inc.
11/10/2004
CONTACT: Stacey Dwyer, EVP of D.R. Horton, Inc., +1-817-856-8200
Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20040722/DHILOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, [email protected]
Web site: http://www.drhorton.com
(DHI)
