Quarter Highlights
* Net income increased 48% to a record $188.6 million
* Diluted earnings per share increased 40% to $0.80 per diluted share
* Net sales orders increased 37% to $3.3 billion (13,480 homes)
* Sales contract backlog increased 32% to an all-time record of
$4.6 billion (18,137 homes)
* Homes closed increased 25% to 9,823 homes
* Consolidated revenue increased 22% to $2.3 billion
* Homebuilding debt to total capitalization (net of homebuilding cash)
improved 800 basis points to 43.3% from 51.3% a year ago
* All regions reported an increase in homes closed, net sales orders and
sales contract backlog in both homes and dollars
ARLINGTON, Texas, April 15 /PRNewswire-FirstCall/ -- D.R. Horton, Inc.
(NYSE: DHI) Thursday (April 15, 2004) reported that net income for the quarter
ended March 31, 2004 increased 48% to $188.6 million ($0.80 per diluted
share), from $127.8 million ($0.57 per diluted share) in the same quarter of
fiscal 2003. Second quarter consolidated revenue increased 22% to
$2.3 billion, from $1.9 billion in the second quarter of fiscal year 2003.
Homes closed increased 25% to 9,823 homes from 7,888 homes in the year ago
quarter.
For the six months ended March 31, 2004, net income increased 56% to
$374.2 million ($1.58 per diluted share), compared to $239.7 million
($1.08 per diluted share) for the same period of fiscal 2003. Consolidated
revenue for the six months increased 24% to $4.5 billion, from $3.7 billion
for the same period of fiscal 2003. Homes closed increased 24% to
19,065 homes from 15,402 homes for the same period of fiscal year 2003.
As previously reported, net sales orders for the quarter ended
March 31, 2004 established an all-time quarterly record of $3.3 billion
(13,480 homes), an increase of 37% compared to $2.4 billion (10,548 homes) for
the same quarter of fiscal 2003. Net sales orders for the first six months of
fiscal 2004 increased 30% to $5.4 billion (21,714 homes), compared to
$4.1 billion (17,800 homes) for the same period of fiscal 2003. The Company's
sales contract backlog at March 31, 2004 established an all-time Company
record totaling $4.6 billion (18,137 homes), up 32% from $3.5 billion
(15,095 homes) at March 31, 2003.
The Company is raising earnings per diluted share guidance for the fiscal
year ended September 30, 2004 to the range of $3.45 to $3.55, based on
237.0 million diluted shares outstanding. This represents a 26% to 30%
increase over the $2.73 per diluted share reported in fiscal year 2003. The
earnings guidance is based on approximately 43,000 to 44,000 homes closed and
$10.2 to $10.4 billion in consolidated revenue.
The Company will host a conference call Thursday, April 15th at 10:00 a.m.
EDT. 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, "It has been an exciting
quarter for the Company. The Company continues to experience strong sales
demand as evidenced by the 37% sales increase in the second quarter, which
contributed to an all-time record backlog of $4.6 billion. Our record
earnings for the first half of this fiscal year, combined with our record
sales contract backlog, ensure that fiscal year 2004 will be our 27th
consecutive year of increased revenues and profitability."
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 51 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 our revenues, home closings, and
earnings per share guidance for 2004, and our assurance of another consecutive
year of growth and profitability in 2004, based on our record earnings for the
first half of the year and record sales contract backlog position. 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; 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
its 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: www.DRHORTON.com
D.R. HORTON, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended Six months ended
March 31, March 31,
2003 2004 2003 2004
(In millions, except per share amounts)
Homebuilding:
Revenues
Home sales $1,777.8 $2,250.5 $3,444.3 $4,385.1
Land/lot sales 91.0 42.7 131.2 71.7
1,868.8 2,293.2 3,575.5 4,456.8
Cost of sales
Home sales 1,419.5 1,748.8 2,753.3 3,403.1
Land/lot sales 76.9 27.3 111.7 43.4
1,496.4 1,776.1 2,865.0 3,446.5
Gross profit
Home sales 358.3 501.7 691.0 982.0
Land/lot sales 14.1 15.4 19.5 28.3
372.4 517.1 710.5 1,010.3
Selling, general and
administrative expense 187.3 222.7 366.5 435.2
Interest expense 0.0 3.1 0.3 3.3
Other expense (income) (0.1) 2.8 (0.3) 0.2
Operating income from
homebuilding 185.2 288.5 344.0 571.6
Financial services:
Revenues 39.7 42.0 78.0 83.0
Selling, general and
administrative expense 22.2 26.2 44.3 51.7
Interest expense 1.5 1.1 3.5 2.4
Other (income) (5.0) (3.4) (10.9) (7.9)
Operating income from financial
services 21.0 18.1 41.1 36.8
Income before income taxes 206.2 306.6 385.1 608.4
Provision for income taxes 78.4 118.0 145.4 234.2
Net income $127.8 $188.6 $239.7 $374.2
Amounts per share - basic:
Net Income $0.58 $0.81 $1.09 $1.61
Weighted average number of
shares 219.5 232.8 219.6 232.5
Amounts per share - diluted:
Net Income $0.57 $0.80 $1.08 $1.58
Weighted average number of
shares 222.3 237.1 222.5 236.9
Other Consolidated Financial Data
Interest amortized to home and
land/lot cost of sales $49.7 $54.9 $89.2 $107.7
Depreciation and amortization $9.8 $10.4 $18.8 $21.9
Interest incurred $61.7 $64.2 $120.5 $120.4
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
As of March 31,
2004
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $190.4
Inventories
Finished homes and construction in progress 2,770.4
Residential lots - developed and under development 3,034.2
Land held for development 6.3
Consolidated land inventory not owned 24.7
5,835.6
Property and equipment (net) 86.4
Other assets 464.1
Excess of cost over net assets acquired (net) 578.9
7,155.4
Financial services:
Cash and cash equivalents 28.3
Mortgage loans held for sale 432.5
Other assets 27.5
488.3
$7,643.7
LIABILITIES
Homebuilding:
Accounts payable and other liabilities $1,045.0
Notes payable 2,780.9
3,825.9
Financial services:
Accounts payable and other liabilities 12.5
Notes payable 366.9
379.4
4,205.3
Minority interests 48.2
STOCKHOLDERS' EQUITY
Common stock 2.4
Additional capital 1,594.1
Unearned compensation (1.1)
Retained earnings 1,853.7
Treasury stock (at cost) (58.9)
3,390.2
$7,643.7
D.R. HORTON, INC.
($'s in millions)
NET SALES ORDERS
Three Months Ended March 31,
2003 2004
Units $'s Units $'s
Mid-Atlantic 993 $215.1 1,034 $277.3
Midwest 522 140.7 620 175.1
Southeast 1,152 215.5 1,758 365.0
Southwest 4,473 740.2 5,435 906.1
West 3,408 1,128.0 4,633 1,610.3
10,548 $2,439.5 13,480 $3,333.8
Six Months Ended March 31,
2003 2004
Units $'s Units $'s
Mid-Atlantic 1,714 $361.0 1,749 $444.0
Midwest 951 247.6 1,031 300.3
Southeast 2,101 385.4 2,931 616.6
Southwest 7,244 1,209.1 8,715 1,460.9
West 5,790 1,934.9 7,288 2,545.7
17,800 $4,138.0 21,714 $5,367.5
HOMES CLOSED
Three Months Ended March 31,
2003 2004
Units $'s Units $'s
Mid-Atlantic 743 $154.5 801 $180.5
Midwest 441 107.6 443 119.2
Southeast 979 167.7 1,282 251.5
Southwest 3,277 552.3 4,432 729.5
West 2,448 795.7 2,865 969.8
7,888 $1,777.8 9,823 $2,250.5
Six Months Ended March 31,
2003 2004
Units $'s Units $'s
Mid-Atlantic 1,408 $288.7 1,643 $362.0
Midwest 867 217.1 887 238.5
Southeast 1,926 325.0 2,403 469.0
Southwest 6,357 1,070.2 8,373 1,370.9
West 4,844 1,543.3 5,759 1,944.7
15,402 $3,444.3 19,065 $4,385.1
SALES CONTRACT BACKLOG
As of March 31
2003 2004
Units $'s Units $'s
Mid-Atlantic 1,559 $337.2 1,708 $452.8
Midwest 1,000 269.0 1,125 340.7
Southeast 1,844 335.1 2,351 511.8
Southwest 6,073 1,026.6 7,018 1,210.9
West 4,619 1,551.0 5,935 2,119.5
15,095 $3,518.9 18,137 $4,635.7
SOURCE D.R. Horton, Inc.
