FORT WORTH, Texas--(BUSINESS WIRE)--Nov. 14, 2006--D.R. Horton,
Inc. (NYSE:DHI), America's Builder, the largest homebuilder in the
United States, Tuesday (November 14, 2006), reported net income for
the fourth quarter ended September 30, 2006 of $277.7 million ($0.88
per diluted share), which included pre-tax charges to cost of sales of
$142.0 million ($0.28 per diluted share) of inventory impairments and
$57.2 million ($0.11 per diluted share) of write-offs of deposits and
pre-acquisition costs related to land option contracts that the
Company does not intend to pursue. Earnings for the same quarter of
fiscal year 2005 were $563.8 million ($1.77 per diluted share). Fourth
quarter consolidated revenue totaled $4.9 billion, compared to $5.1
billion in the fourth quarter of fiscal year 2005. Homes closed
totaled 17,261 homes, compared to 18,622 homes in the year ago
quarter.
For the fiscal year ended September 30, 2006, net income totaled
$1.2 billion ($3.90 per diluted share), which included pre-tax charges
to cost of sales of $146.2 million ($0.29 per diluted share) of
inventory impairments and $124.7 million ($0.24 per diluted share) of
write-offs of deposits and pre-acquisition costs related to land
option contracts that the Company does not intend to pursue. Earnings
for fiscal year 2005 were $1.5 billion ($4.62 per diluted share).
Consolidated revenue for the year totaled $15.1 billion, compared to
$13.9 billion for fiscal year 2005. Homes closed totaled 53,099 homes,
compared to 51,172 homes in fiscal year 2005.
The Company's sales order backlog of homes under contract at
September 30, 2006 was 18,125 homes ($5.2 billion), compared to 19,244
homes ($5.8 billion) at September 30, 2005. As previously reported,
net sales orders for the fourth quarter totaled 10,430 homes ($2.5
billion), compared to 13,950 homes ($3.8 billion) for the same quarter
of fiscal year 2005. Net sales orders for fiscal year 2006 totaled
51,980 homes ($13.9 billion), compared to 53,232 homes ($14.6 billion)
for fiscal year 2005.
The Company will host a conference call Tuesday, November 14th at
10:00 a.m. EST. The dial-in number is 800-374-9096. The call will also
be webcast from www.drhorton.com on the "Investor Relations" page.
Donald R. Horton, Chairman of the Board, said, "Our people
produced greater than $1.2 billion in net income and closed more than
53,000 homes. Our employees continue to work very hard during a time
when market conditions are challenging in the homebuilding industry.
"We continue to focus on maintaining our strong balance sheet and
reducing our inventory. In the September quarter, we reduced our total
homebuilding inventory by $662 million, and we reduced our number of
homes under construction by approximately 11,000 homes (a 27%
reduction), resulting in significant positive cash flows from
operations during the quarter. Our shareholders' equity grew 20%
during fiscal year 2006 to $6.5 billion, contributing to our net
homebuilding debt to total capitalization of 40.7% at September 30,
2006."
The Company has expanded its reporting segment disclosures to
include six homebuilding reporting regions. The new regions are:
- Northeast: Delaware, Georgia (Savannah only), Illinois,
Maryland, Minnesota, New Jersey, New York, North Carolina,
Pennsylvania, South Carolina, Virginia and Wisconsin
- Southeast: Alabama, Florida, and Georgia
- South Central: Louisiana, Oklahoma and Texas
- Southwest: Arizona, Colorado, New Mexico, Texas (Lubbock only)
and Utah
- California: California and Nevada (Reno only)
- West: Hawaii, Idaho, Nevada, Oregon and Washington
This reporting segment expansion has no effect on the Company's
consolidated financial position, results of operations or cash flows
for the periods presented.
D.R. Horton, Inc., America's Builder, is the largest homebuilder
in the United States, delivering more than 53,000 homes in its fiscal
year ended September 30, 2006. Founded in 1978 in Fort Worth, Texas,
D.R. Horton has expanded its presence to include 84 markets in 27
states. The Company is engaged in the construction and sale of high
quality homes with sales prices ranging from $90,000 to over $900,000.
D.R. Horton also provides mortgage financing and title services for
homebuyers through its mortgage and title subsidiaries.
WEBSITE ADDRESS: www.drhorton.com
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
As of September 30,
---------------------
2005 2006
---------- ----------
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $1,111.6 $457.8
Inventories:
Construction in progress and finished homes 3,105.9 4,322.8
Residential land and lots - developed and
under development 5,174.3 6,737.0
Land held for development 6.2 182.9
Consolidated land inventory not owned 200.4 100.4
---------- ----------
8,486.8 11,343.1
Property and equipment (net) 107.2 131.4
Earnest money deposits and other assets 756.0 816.4
Goodwill 578.9 578.9
---------- ----------
11,040.5 13,327.6
---------- ----------
Financial Services:
Cash and cash equivalents 38.2 129.8
Restricted cash - 248.3
Mortgage loans held for sale 1,358.7 1,022.9
Other assets 77.4 92.1
---------- ----------
1,474.3 1,493.1
---------- ----------
Total assets $12,514.8 $14,820.7
========== ==========
LIABILITIES
Homebuilding:
Accounts payable $820.7 $982.3
Accrued expenses and other liabilities 1,196.9 1,143.0
Notes payable 3,660.1 4,886.9
---------- ----------
5,677.7 7,012.2
---------- ----------
Financial Services:
Accounts payable and other liabilities 24.0 58.8
Notes payable 1,249.5 1,191.7
---------- ----------
1,273.5 1,250.5
---------- ----------
6,951.2 8,262.7
---------- ----------
Minority interests 203.2 105.1
---------- ----------
STOCKHOLDERS' EQUITY
Common stock 3.2 3.2
Additional capital 1,624.8 1,658.4
Retained earnings 3,791.3 4,887.0
Treasury stock (at cost) (58.9) (95.7)
---------- ----------
5,360.4 6,452.9
---------- ----------
Total liabilities and stockholders' equity $12,514.8 $14,820.7
========== ==========
D.R. HORTON, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Fiscal Year Ended
September 30, September 30,
--------------------- ---------------------
2005 2006 2005 2006
---------- ---------- ---------- ----------
(In millions, except per share amounts)
Homebuilding:
Revenues:
Home sales $ 4,943.7 $ 4,702.7 $13,376.6 $14,545.4
Land/lot sales 74.4 95.9 252.0 215.1
--------- --------- --------- ---------
5,018.1 4,798.6 13,628.6 14,760.5
--------- --------- --------- ---------
Cost of sales:
Home sales 3,688.7 3,718.9 9,960.6 11,047.8
Land/lot sales 57.2 53.4 162.6 99.6
Inventory impairments
and land option
write-offs 9.2 199.2 17.1 270.9
--------- --------- --------- ---------
3,755.1 3,971.5 10,140.3 11,418.3
--------- --------- --------- ---------
Gross profit:
Home sales 1,255.0 983.8 3,416.0 3,497.6
Land/lot sales 17.2 42.5 89.4 115.5
Inventory impairments
and land option
write-offs (9.2) (199.2) (17.1) (270.9)
--------- --------- --------- ---------
1,263.0 827.1 3,488.3 3,342.2
--------- --------- --------- ---------
Selling, general and
administrative expense 399.8 409.7 1,226.6 1,456.6
Interest expense 4.4 2.8 4.4 17.9
Other (income)/expense (4.3) 2.5 (15.7) (11.0)
--------- --------- --------- ---------
Operating income from
Homebuilding 863.1 412.1 2,273.0 1,878.7
--------- --------- --------- ---------
Financial Services:
Revenues 78.6 84.1 235.1 290.8
General and
administrative expense 42.5 54.5 147.6 202.2
Interest expense 7.7 12.5 16.8 37.1
Other (income) (12.9) (16.6) (34.9) (56.9)
--------- --------- --------- ---------
Operating income from
Financial Services 41.3 33.7 105.6 108.4
--------- --------- --------- ---------
Income before income taxes 904.4 445.8 2,378.6 1,987.1
Provision for income taxes 340.6 168.1 908.1 753.8
--------- --------- --------- ---------
Net income $ 563.8 $ 277.7 $ 1,470.5 $ 1,233.3
========= ========= ========= =========
Basic:
Net income per share $ 1.80 $ 0.89 $ 4.71 $ 3.94
========= ========= ========= =========
Weighted average number
of common shares 312.8 313.1 312.2 312.8
========= ========= ========= =========
Diluted:
Net income per share $ 1.77 $ 0.88 $ 4.62 $ 3.90
========= ========= ========= =========
Weighted average number
of common shares 318.9 314.8 318.1 316.2
========= ========= ========= =========
Other Consolidated
Financial Data:
Interest amortized to
home and land/lot cost
of sales $ 66.3 $ 72.6 $ 225.0 $ 237.1
========= ========= ========= =========
Depreciation and
amortization $ 13.5 $ 15.8 $ 52.8 $ 56.5
========= ========= ========= =========
Interest incurred $ 80.2 $ 104.7 $ 294.1 $ 380.4
========= ========= ========= =========
D.R. HORTON, INC.
($'s in millions)
NET SALES ORDERS
Three Months Ended September 30,
-------------------------------------------
2005 2006
--------------------- ---------------------
Homes $'s Homes $'s
---------- ---------- ---------- ----------
Northeast 2,191 $563.8 1,487 $366.1
Southeast 2,065 542.4 1,237 264.7
South Central 3,861 633.1 3,504 615.6
Southwest 3,115 868.7 2,444 536.3
California 1,657 767.5 1,013 484.5
West 1,061 378.7 745 265.0
---------- ---------- ---------- ----------
13,950 $3,754.2 10,430 $2,532.2
========== ========== ========== ==========
NET SALES ORDERS
Fiscal Year Ended September 30,
-------------------------------------------
2005 2006
--------------------- ---------------------
Homes $'s Homes $'s
---------- ---------- ---------- ----------
Northeast 8,296 $2,187.9 7,150 $1,844.1
Southeast 8,050 2,012.6 7,082 1,753.8
South Central 12,391 2,068.2 14,682 2,536.4
Southwest 12,391 3,135.3 11,921 3,071.5
California 8,171 3,862.9 7,050 3,238.6
West 3,933 1,376.5 4,095 1,450.8
---------- ---------- ---------- ----------
53,232 $14,643.4 51,980 $13,895.2
========== ========== ========== ==========
HOMES CLOSED
Three Months Ended September 30,
-------------------------------------------
2005 2006
--------------------- ---------------------
Homes $'s Homes $'s
---------- ---------- ---------- ----------
Northeast 2,847 $745.8 2,701 $718.3
Southeast 2,936 676.6 2,432 612.9
South Central 4,581 747.9 4,252 731.2
Southwest 3,793 922.3 3,845 948.9
California 3,044 1,375.2 2,615 1,206.7
West 1,421 475.9 1,416 484.7
---------- ---------- ---------- ----------
18,622 $4,943.7 17,261 $4,702.7
========== ========== ========== ==========
HOMES CLOSED
Fiscal Year Ended September 30,
-------------------------------------------
2005 2006
--------------------- ---------------------
Homes $'s Homes $'s
---------- ---------- ---------- ----------
Northeast 7,010 $1,802.3 8,142 $2,196.2
Southeast 7,911 1,800.2 8,053 2,029.4
South Central 12,737 2,103.9 13,444 2,282.9
Southwest 11,602 2,672.1 11,235 2,904.0
California 7,671 3,533.5 7,884 3,600.8
West 4,241 1,464.6 4,341 1,532.1
---------- ---------- ---------- ----------
51,172 $13,376.6 53,099 $14,545.4
========== ========== ========== ==========
SALES ORDER BACKLOG
As of September 30,
-------------------------------------
2005 2006
------------------ ------------------
Homes $'s Homes $'s
-------- --------- -------- ---------
Northeast 3,894 $1,148.9 2,902 $796.8
Southeast 3,119 909.4 2,148 633.8
South Central 2,975 524.2 4,213 777.8
Southwest 5,068 1,382.8 5,754 1,550.2
California 2,922 1,403.8 2,088 1,041.7
West 1,266 466.1 1,020 384.8
-------- --------- -------- ---------
19,244 $5,835.2 18,125 $5,185.1
======== ========= ======== =========
The Company's homebuilding reporting segments consist of operations
in the following states:
Northeast: Delaware, Georgia (Savannah only), Illinois, Maryland,
Minnesota, New Jersey, New York, North Carolina, Pennsylvania,
South Carolina, Virginia and Wisconsin
Southeast: Alabama, Florida and Georgia
South Central: Louisiana, Oklahoma and Texas
Southwest: Arizona, Colorado, New Mexico, Texas (Lubbock only) and
Utah
California: California and Nevada (Reno only)
West: Hawaii, Idaho, Nevada, Oregon and Washington
CONTACT: D.R. Horton, Inc.
Stacey Dwyer, EVP, 817-390-8200
