Quarter Highlights
* Net sales orders increased 66% to $1.7 billion (7,252 homes)
* Sales backlog increased 56% to $2.9 billion (12,435 homes)
* Net income increased 52% to $111.8 million
* Consolidated revenue increased 50% to $1.7 billion
* Homes closed increased 32% to 7,514 units
* Earnings per share increased 21% to $0.75
* Homebuilding debt to total capitalization (net of cash) improved to
51.5% from 55.9% a year ago
* Approximately $900 million in cash and undrawn credit facility
ARLINGTON, Texas, Jan. 16 /PRNewswire-FirstCall/ -- D.R. Horton, Inc.
(NYSE: DHI) Thursday (January 16, 2003), reported that net income for the
quarter ended December 31, 2002 increased 52% to $111.8 million ($0.75 per
diluted share), compared to $73.4 million ($0.62 per diluted share) for the
quarter ended December 31, 2001. First quarter consolidated revenue increased
50% to $1.7 billion from $1.2 billion in the year ago quarter. Homes closed
for the first quarter increased 32% to 7,514 homes from 5,691 homes a year
ago.
The Company reported a record December 31 sales backlog of $2.9 billion
(12,435 homes), an increase of 56% from $1.8 billion (8,716 homes) a year ago.
The Company previously reported that net sales orders for the quarter
increased 66% to $1.7 billion (7,252 homes) from $1.0 billion (5,144 homes)
for the same period last year.
The Company expects diluted earnings per share for the quarter ended
March 31, 2003 to be in the range of $0.73 to $0.76 (approximately 159 million
diluted shares). The Company expects diluted earnings per share for fiscal
year 2003 to be in the range of $3.50 to $3.55 (approximately 157 million
diluted shares). This range represents a 22% to 24% increase in earnings per
share over the $2.87 reported in fiscal year 2002, and is based on projected
revenues of approximately $8.0 billion (approximately 35,000 homes closed).
D.R. Horton's earnings release conference call will be today at 12:30 p.m.
EST. The number is 800-374-9096, and the call will also be available through
a webcast at www.DRHORTON.com .
Donald R. Horton, Chairman of the Board, said, "We are extremely pleased
with the Company's first quarter performance, where once again we grew our net
income at a faster pace than our revenues. The excellent results of our first
quarter, our record backlog at December 31 and our strong liquidity position
of approximately $900 million provide a solid foundation for achieving another
record year in 2003."
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 under the D.R.
Horton, Arappco, Cambridge, Continental, Dietz-Crane, Dobson, Emerald, Melody,
Milburn, Schuler, SGS Communities, Stafford, Torrey, Trimark, and Western
Pacific names in 20 states and 44 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 expectation of another record
year in fiscal year 2003, and the Company's diluted earnings per share
expectations for the quarter ending March 31, 2003 and the year ending
September 30, 2003. 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 which is
filed with the Securities and Exchange Commission.
www.DRHORTON.com
D.R. HORTON, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended
December 31,
2001 2002
(In millions, except per share amounts)
Homebuilding:
Revenues
Home sales $1,125.7 $1,666.4
Land/lot sales 9.3 40.3
1,135.0 1,706.7
Cost of sales
Home sales 898.9 1,333.7
Land/lot sales 7.9 34.8
906.8 1,368.5
Gross profit
Home sales 226.8 332.7
Land/lot sales 1.4 5.5
228.2 338.2
Selling, general and administrative
expenses 118.4 179.2
Interest expense 1.2 0.4
Other (income) 2.6 (0.2)
Operating income from homebuilding 106.0 158.8
Financial Services:
Revenues 24.9 38.2
Selling, general and administrative
expenses 15.1 22.0
Interest expense 1.3 2.0
Other (income) (3.0) (5.9)
Operating income from financial
services 11.5 20.1
Income before income taxes 117.5 178.9
Provision for income taxes 44.1 67.1
Net income $73.4 $111.8
Amounts per share - basic:
Net income $0.64 $0.76
Weighted average number of common
shares 115.4 146.5
Amounts per share - diluted:
Net income $0.62 $0.75
Weighted average number of common
shares 117.5 148.5
Consolidated Financial Data:
Interest amortized to home and
land/lot cost of sales $22.3 $39.5
Depreciation and amortization 5.3 9.0
Interest incurred 38.0 58.8
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
September 30, December 31,
2002 2002
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $92.1 $180.0
Inventories 4,343.1 4,580.5
Property and equipment (net) 71.9 77.1
Other assets 430.4 376.2
Excess of cost over net assets acquired 579.2 579.0
5,516.7 5,792.8
Financial services:
Cash and cash equivalents 12.2 14.7
Mortgage loans held for sale 464.1 431.8
Other assets 24.5 19.3
500.8 465.8
$6,017.5 $6,258.6
LIABILITIES
Homebuilding:
Accounts payable and other liabilities $834.0 $814.2
Notes payable 2,487.0 2,699.6
3,321.0 3,513.8
Financial services:
Accounts payable and other liabilities 14.3 13.8
Notes payable 391.4 338.3
405.7 352.1
3,726.7 3,865.9
Minority interests 20.9 18.6
STOCKHOLDERS' EQUITY
Common stock 1.5 1.5
Additional capital 1,349.6 1,350.2
Unearned compensation (4.4) (3.8)
Retained earnings 923.2 1,026.2
2,269.9 2,374.1
$6,017.5 $6,258.6
D.R. HORTON, INC.
($'s in millions)
NET SALES ORDERS
Three months ended December 31,
2001 2002
Units $'s Units $'s
Mid-Atlantic 628 $128.1 721 $146.0
Midwest 388 96.9 429 106.9
Southeast 735 118.3 949 169.8
Southwest 2,332 379.2 2,771 468.9
West 1,061 298.9 2,382 806.9
5,144 $1,021.4 7,252 $1,698.5
HOMES CLOSED
Three months ended December 31,
2001 2002
Units $'s Units $'s
Mid-Atlantic 595 $125.1 665 $134.2
Midwest 463 118.7 426 109.5
Southeast 888 154.9 947 157.3
Southwest 2,571 432.6 3,080 517.9
West 1,174 294.4 2,396 747.5
5,691 $1,125.7 7,514 $1,666.4
SALES BACKLOG
December 31,
2001 2002
Units $'s Units $'s
Mid-Atlantic 855 $193.3 1,309 $276.6
Midwest 843 241.0 919 235.9
Southeast 1,311 216.9 1,671 287.3
Southwest 3,996 684.6 4,877 838.7
West 1,711 493.7 3,659 1,218.8
8,716 $1,829.5 12,435 $2,857.3
SOURCE D.R. Horton, Inc.
