Quarter Highlights
* Earnings per diluted share increased 48% to $0.99
* Net income increased 47% to $155.6 million
* Sales backlog increased 37% to a record $4.0 billion (16,901 homes)
* Net sales orders increased 29% to $2.6 billion (10,811 homes)
* Consolidated revenue increased 22% to $2.2 billion
* Homes closed increased 14% to 9,005 homes
* Homebuilding debt to total capitalization (net of cash) improved
1,000 basis points to 45.9% from 55.9%
ARLINGTON, Texas, July 16 /PRNewswire-FirstCall/ -- D.R. Horton, Inc.
(NYSE: DHI) Wednesday (July 16, 2003), reported that net income for the
quarter ended June 30, 2003 increased 47% to $155.6 million ($0.99 per diluted
share), from $105.9 million ($0.67 per diluted share) for the same period in
fiscal 2002. Third quarter consolidated revenue increased 22% to
$2.2 billion, from $1.8 billion in fiscal 2002. Homes closed increased 14% to
9,005 homes from 7,877 in the year ago quarter.
For the nine months ended June 30, 2003, net income increased 47% to
$395.2 million ($2.62 per diluted share), compared to $268.3 million
($1.94 per diluted share) for the same period of fiscal 2002. Consolidated
revenue for the nine months increased 28% to $5.9 billion, from $4.6 billion
for the same period of fiscal 2002. Homebuilding revenue for the nine months
increased 28% to $5.7 billion (24,407 homes closed), compared to $4.5 billion
(20,207 homes closed) for the same period of fiscal 2002.
As previously reported, net sales orders for the third quarter established
an all-time quarterly record of $2.6 billion (10,811 homes), an increase of
29% compared to $2.0 billion (9,065 homes) for the same quarter of fiscal
2002. Net sales orders for the first nine months of fiscal 2003 increased 38%
to a record $6.8 billion (28,611 homes), compared to $4.9 billion (22,826
homes) for the same period of fiscal 2002. The Company's backlog of homes
under contract at June 30, 2003 totaled a record $4.0 billion (16,901 homes),
up 37% from $2.9 billion (13,586 homes) at June 30, 2002.
The Company reiterates earnings per share guidance for the fiscal year
ended September 30, 2003 of approximately $3.85 to $3.90, and is issuing
preliminary guidance for the fiscal year ended September 30, 2004 of
approximately $4.25 to $4.30.
The Company will host a conference call Thursday, July 17th 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 another
exciting quarter for the Company. In addition to record home sales orders,
backlog, revenues, and profits, we saw significant improvement in our balance
sheet structure as our homebuilding debt to total capitalization (net of cash)
improved by 1,000 basis points. The Company's continued sales momentum
combined with our record $4.0 billion backlog, ensure that fiscal 2003 will be
our 26th consecutive year of growth and profitability, and position us for
another record year in fiscal year 2004."
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 and 2004, continued sales momentum and our assurance of another
consecutive year of growth and profitability in 2003, and our expectations as
to our position for 2004 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 the
most recent Form 10-Q, both of which were filed with the Securities and
Exchange Commission.
D.R. HORTON, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended Nine months ended
June 30, June 30,
2002 2003 2002 2003
(In millions, except per share amounts)
Homebuilding:
Revenues
Home sales $1,750.2 $2,108.9 $4,410.3 $5,553.2
Land/lot sales 29.4 57.9 80.5 189.0
1,779.6 2,166.8 4,490.8 5,742.2
Cost of sales
Home sales 1,416.1 1,676.3 3,573.8 4,429.6
Land/lot sales 25.9 50.5 70.1 162.1
1,442.0 1,726.8 3,643.9 4,591.7
Gross profit
Home sales 334.1 432.6 836.5 1,123.6
Land/lot sales 3.5 7.4 10.4 26.9
337.6 440.0 846.9 1,150.5
Selling, general and
administrative expense 177.0 208.0 444.9 574.4
Interest expense 1.5 1.7 5.2 2.1
Other expense 3.8 3.4 4.0 3.1
Operating income from
homebuilding 155.3 226.9 392.8 570.9
Financial services:
Revenues 28.9 45.6 77.7 123.6
Selling, general and
administrative expense 18.2 25.3 48.3 69.6
Interest expense 1.2 1.7 3.5 5.3
Other (income) (4.7) (5.4) (10.6) (16.4)
Operating income from financial
services 14.2 24.0 36.5 65.1
Income before income taxes 169.5 250.9 429.3 636.0
Provision for income taxes 63.6 95.3 161.0 240.8
Net income $105.9 $155.6 $268.3 $395.2
Amounts per share - basic:
Net income $0.72 $1.07 $2.06 $2.70
Weighted average number of
common shares 146.3 146.0 130.2 146.3
Amounts per share - diluted:
Net income $0.67 $0.99 $1.94 $2.62
Weighted average number of
common shares 159.0 157.5 139.3 151.4
Other Consolidated
Financial Data
Interest amortized to home and
land/lot cost of sales $37.8 $55.5 $89.6 $144.7
Depreciation and amortization $7.6 $11.3 $18.6 $30.0
Interest incurred $59.5 $64.1 $145.1 $184.6
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
June 30, 2003
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $264.2
Inventories 4,997.3
Property and equipment (net) 75.7
Other assets 418.6
Excess of cost over net assets acquired (net) 581.2
6,337.0
Financial services:
Cash and cash equivalents 32.1
Mortgage loans held for sale 525.5
Other assets 21.5
579.1
$6,916.1
LIABILITIES
Homebuilding:
Accounts payable and other liabilities $918.1
Notes payable 2,667.0
3,585.1
Financial services:
Accounts payable and other liabilities 12.2
Notes payable 414.0
426.2
4,011.3
Minority interests 69.5
STOCKHOLDERS' EQUITY
Common stock 1.6
Additional capital 1,576.7
Unearned compensation (2.7)
Retained earnings 1,289.2
Treasury stock (29.5)
2,835.3
$6,916.1
D.R. HORTON, INC.
($'s in millions)
NET SALES ORDERS
Three Months Ended June 30, Nine Months Ended June 30,
2002 2003 2002 2003
Units $'s Units $'s Units $'s Units $'s
Mid-
Atlantic 960 $201.3 952 $216.1 2,471 $512.0 2,666 $577.1
Midwest 543 126.8 503 138.0 1,394 341.1 1,454 385.6
Southeast 976 161.9 1,213 237.7 2,680 438.6 3,314 623.0
Southwest 3,520 590.5 4,317 715.5 9,537 1,583.7 11,561 1,924.6
West 3,066 954.1 3,826 1,311.1 6,744 2,014.1 9,616 3,246.0
9,065 $2,034.6 10,811 $2,618.4 22,826 $4,889.5 28,611 $6,756.3
HOMES CLOSED
Three Months Ended June 30, Nine Months Ended June 30,
2002 2003 2002 2003
Units $'s Units $'s Units $'s Units $'s
Mid-
Atlantic 788 $167.3 833 $175.0 2,016 $431.0 2,241 $463.7
Midwest 472 119.4 468 118.2 1,323 333.5 1,335 335.3
Southeast 838 139.1 1,099 194.9 2,516 429.7 3,025 519.8
Southwest 3,062 516.4 3,581 607.7 7,971 1,352.9 9,938 1,677.9
West 2,717 808.0 3,024 1,013.1 6,381 1,863.2 7,868 2,556.5
7,877 $1,750.2 9,005 $2,108.9 20,207 $4,410.3 24,407 $5,553.2
SALES CONTRACT BACKLOG
As of June 30,
2002 2003
Units $'s Units $'s
Mid-Atlantic 1,277 $271.3 1,678 $378.3
Midwest 989 270.4 1,035 288.9
Southeast 1,628 262.4 1,958 377.9
Southwest 5,868 984.4 6,809 1,134.4
West 3,824 1,159.7 5,421 1,848.9
13,586 $2,948.2 16,901 $4,028.4
WEBSITE ADDRESS: www.DRHORTON.comSOURCE D.R. Horton, Inc.
