Quarter Highlights
* Net income increased 44% to $127.8 million
* Net sales orders increased 33% to $2.4 billion (10,548 homes)
* 'Same store' net sales orders increased 19% to $2.2 billion
(9,777 homes)
* Sales backlog increased 32% to an all-time record of $3.5 billion
(15,095 homes)
* Diluted earnings per share increased 34% to $0.86
* Homes closed increased 19% to 7,888 homes
* Stockholders' equity exceeded $2.4 billion
* Homebuilding debt to total capitalization (net of cash) improved
450 basis points to 51.3% from 55.8% a year ago
* The Company repurchased approximately 1.7 million shares in March 2003
ARLINGTON, Texas, April 16 /PRNewswire-FirstCall/ -- D.R. Horton, Inc.
(NYSE: DHI) Wednesday (April 16, 2003) reported that net income for the
quarter ended March 31, 2003 increased 44% to $127.8 million ($0.86 per
diluted share), from $88.9 million ($0.64 per diluted share) in the same
quarter of fiscal 2002. Second quarter consolidated revenue increased 19% to
$1.9 billion, from $1.6 billion in fiscal 2002. Homes closed increased 19% to
7,888 homes from 6,639 homes in the year ago quarter.
For the six months ended March 31, 2003, net income increased 48% to
$239.7 million ($1.62 per diluted share), compared to $162.4 million ($1.26
per diluted share) for the same period of fiscal 2002. Consolidated revenue
for the six months increased 32% to $3.7 billion, from $2.8 billion for the
same period of fiscal 2002. Homebuilding revenue for the six months also
increased 32% to $3.6 billion (15,402 homes closed), compared to $2.7 billion
(12,330 homes closed) for the same period of fiscal 2002.
As previously reported, net sales orders for the second quarter
established an all-time quarterly record of $2.4 billion (10,548 homes), an
increase of 33% compared to $1.8 billion (8,617 homes) for the same quarter of
fiscal 2002. Net sales orders for the first six months of fiscal 2003
increased 45% to $4.1 billion (17,800 homes), compared to $2.9 billion
(13,761 homes) for the same period of fiscal 2002. The Company's sales
backlog at March 31, 2003 established an all-time company record totaling
$3.5 billion (15,095 homes), up 32% from $2.7 billion (12,398 homes) at
March 31, 2002.
The Company is raising earnings per share guidance for the fiscal year
ended September 30, 2003 to the range of $3.60 to $3.65. The Company expects
that the balance of the fiscal year 2003 earnings will be realized
approximately 45% in our third quarter and 55% in our fourth quarter.
The Company will host a conference call Thursday, April 17th at
11:00 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 33% sales increase in the second quarter, which
contributed to an all-time record backlog of $3.5 billion. Our record
earnings for the first half of this fiscal year, combined with our record
backlog, ensure that fiscal year 2003 will be our 26th consecutive year of
increased growth 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 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 our earnings per share guidance
for 2003, when we expect the balance of our earnings to be realized, continued
strong sales demand and our expectation of another consecutive year of growth
and profitability in 2003 based on our record earnings and record 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,
2002 2003 2002 2003
(In millions, except per share amounts)
Homebuilding:
Revenues
Home sales $1,534.4 $1,777.8 $2,660.1 $3,444.3
Land/lot sales 41.8 91.0 51.1 131.2
1,576.2 1,868.8 2,711.2 3,575.5
Cost of sales
Home sales 1,258.8 1,419.5 2,157.8 2,753.3
Land/lot sales 36.2 76.9 44.1 111.7
1,295.0 1,496.4 2,201.9 2,865.0
Gross profit
Home sales 275.6 358.3 502.3 691.0
Land/lot sales 5.6 14.1 7.0 19.5
281.2 372.4 509.3 710.5
Selling, general and
administrative expense 149.5 187.3 267.9 366.5
Interest expense 2.6 --- 3.8 0.3
Other expense (income) (2.4) (0.1) 0.1 (0.3)
Operating income from
homebuilding 131.5 185.2 237.5 344.0
Financial services:
Revenues 23.9 39.7 48.8 78.0
Selling, general and
administrative expense 14.9 22.2 30.0 44.3
Interest expense 1.0 1.5 2.3 3.5
Other (income) (2.8) (5.0) (5.8) (10.9)
Operating income from financial
services 10.8 21.0 22.3 41.1
Income before income taxes 142.3 206.2 259.8 385.1
Provision for income taxes 53.4 78.4 97.4 145.4
Net income $88.9 $127.8 $162.4 $239.7
Amounts per share - basic:
Net income $0.69 $0.87 $1.33 $1.64
Weighted average number of
common shares 128.9 146.3 122.1 146.4
Amounts per share - diluted:
Net income $0.64 $0.86 $1.26 $1.62
Weighted average number of
common shares 141.5 148.2 129.4 148.4
Other Consolidated Financial Data
Interest amortized to home and
land/lot cost of sales $29.4 $49.7 $51.7 $89.2
Depreciation and amortization $5.7 $9.8 $11.0 $18.8
Interest incurred $47.5 $61.7 $85.6 $120.5
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, March 31,
2002 2003
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $176.3 $161.1
Inventories 4,201.1 4,736.2
Property and equipment (net) 68.5 77.0
Other assets 358.9 371.9
Excess of cost over net assets acquired 564.0 581.2
5,368.8 5,927.4
Financial services:
Cash and cash equivalents 13.5 26.3
Mortgage loans held for sale 202.3 424.7
Other assets 12.1 20.5
227.9 471.5
$5,596.7 $6,398.9
LIABILITIES
Homebuilding:
Accounts payable and other liabilities $630.0 $803.5
Notes payable 2,748.2 2,763.3
3,378.2 3,566.8
Financial services:
Accounts payable and other
liabilities 9.7 14.5
Notes payable 148.2 325.6
157.9 340.1
3,536.1 3,906.9
Minority interests 21.9 26.0
STOCKHOLDERS' EQUITY
Common stock 1.5 1.5
Additional capital 1,346.2 1,353.5
Unearned compensation (7.5) (3.3)
Retained earnings 698.5 1,143.8
Treasury stock --- (29.5)
2,038.7 2,466.0
$5,596.7 $6,398.9
D.R. HORTON, INC.
($'s in millions)
Net Sales Orders
Three Months Ended March 31, Six Months Ended March 31,
2002 2003 2002 2003
Units $'s Units $'s Units $'s Units $'s
Mid-Atlantic 883 $182.6 993 $215.1 1,511 $310.7 1,714 $361.0
Midwest 463 117.4 522 140.7 851 214.3 951 247.6
Southeast 969 158.4 1,152 215.5 1,704 276.7 2,101 385.4
Southwest 3,685 613.9 4,473 740.2 6,017 993.2 7,244 1,209.1
West 2,617 761.1 3,408 1,128.0 3,678 1,060.0 5,790 1,934.9
8,617 $1,833.4 10,548 $2,439.5 13,761 $2,854.9 17,800 $4,138.0
Homes Closed
Three Months Ended March 31, Six Months Ended March 31,
2002 2003 2002 2003
Units $'s Units $'s Units $'s Units $'s
Mid-Atlantic 633 $138.6 743 $154.5 1,228 $263.7 1,408 $288.7
Midwest 388 95.4 441 107.6 851 214.1 867 217.1
Southeast 790 135.7 979 167.7 1,678 290.6 1,926 325.0
Southwest 2,338 403.9 3,277 552.3 4,909 836.5 6,357 1,070.2
West 2,490 760.8 2,448 795.7 3,664 1,055.2 4,844 1,543.3
6,639 $1,534.4 7,888 $1,777.8 12,330 $2,660.1 15,402 $3,444.3
Sales Backlog
As of March 31,
2002 2003
Units $'s Units $'s
Mid-Atlantic 1,105 $237.4 1,559 $337.2
Midwest 918 263.0 1,000 269.0
Southeast 1,490 239.6 1,844 335.1
Southwest 5,410 910.2 6,073 1,026.6
West 3,475 1,013.5 4,619 1,551.0
12,398 $2,663.7 15,095 $3,518.9
SOURCE D.R. Horton, Inc.
