Fourth Quarter Highlights
* Net income increased 61% to $563.8 million, the highest quarterly
earnings in homebuilding history
* Earnings per diluted share increased 59% to $1.77 per diluted share
* Consolidated revenue increased 45% to $5.1 billion
* Net sales orders increased 33% to $3.8 billion (13,950 homes)
* Moody's upgraded D.R. Horton's senior debt to an investment grade
rating of Baa3
Fiscal Year 2005 Highlights
* Net income increased 51% to $1,470.5 million, the highest annual
earnings in homebuilding history
* Earnings per diluted share increased 50% to $4.62 per diluted share
* Consolidated revenue increased 28% to $13.9 billion
* Gross margin on homebuilding revenue improved 250 basis points to 25.6%
* Homes closed increased 17% to 51,172 homes, the first time a builder
has closed more than 50,000 homes in the United States in a fiscal year
* Net sales orders increased 28% to $14.6 billion on 53,232 homes sold,
the first time a builder has sold more than 50,000 homes in the United
States in a fiscal year
* Sales order backlog increased 28% to $5.8 billion (19,244 homes)
* Stockholders' equity increased 35% to $5.4 billion
* Homebuilding debt to total capitalization (net of cash) improved
670 basis points to 32.2%
FORT WORTH, Texas, Nov. 16 /PRNewswire-FirstCall/ -- D.R. Horton, Inc.
(NYSE: DHI), America's Builder, the largest homebuilder in the United States,
Wednesday (November 16, 2005), reported the highest quarterly and annual
earnings in Company history. Net income for the fourth quarter ended
September 30, 2005 increased 61% to $563.8 million ($1.77 per diluted share),
from $349.6 million ($1.11 per diluted share) for the same quarter of fiscal
2004. Fourth quarter consolidated revenue increased 45% to $5.1 billion, from
$3.5 billion in the fourth quarter of fiscal 2004. Homes closed increased 38%
to 18,622 homes from 13,452 homes in the year ago quarter.
For the fiscal year ended September 30, 2005, net income increased 51% to
$1,470.5 million ($4.62 per diluted share), compared to $975.1 million
($3.09 per diluted share) for fiscal 2004. Consolidated revenue for the year
increased 28% to $13.9 billion, from $10.8 billion for fiscal 2004. Homes
closed increased 17% to 51,172 homes from 43,567 homes in fiscal 2004.
The Company's sales order backlog of homes under contract at September 30,
2005 was a fiscal year-end record $5.8 billion (19,244 homes), up 28% from
$4.6 billion (17,184 homes) at September 30, 2004. As previously reported,
net sales orders for the fourth quarter were $3.8 billion (13,950 homes), an
increase of 33% compared to $2.8 billion (11,105 homes) for the same quarter
of fiscal 2004. Net sales orders for fiscal year 2005 increased 28% to
$14.6 billion (53,232 homes), compared to $11.4 billion (45,263 homes) for
fiscal 2004.
The Company is raising its diluted earnings per share guidance for fiscal
year 2006 to be in the range of $5.22 to $5.32 (based on approximately 321
million diluted shares). In fiscal year 2006, the Company expects to close
approximately 58,000 homes and generate revenues in excess of $15.5 billion.
The Company is reiterating its diluted earnings per share guidance for the
quarter ending December 31, 2005 to be in the range of $0.90 to $0.95 (based
on approximately 319.5 million diluted shares).
The Company will host a conference call Wednesday, November 16th at
10:00 a.m. EST. The dial-in number is 800-374-9096. The call will also be
webcast from http://www.drhorton.com on the "Investor Relations" page.
Donald R. Horton, Chairman of the Board, said, "Fiscal year 2005 was our
28th consecutive year of growth in earnings and revenues. In addition to
setting Company records, D.R. Horton is establishing industry records. The
Company is the first builder to sell and close more than 50,000 homes in a
year. We have accomplished this leadership position while continuing to
improve our balance sheet. Our shareholders' equity grew 35% to $5.4 billion,
contributing to our record low homebuilding net debt to cap of 32.2%. The
improvement in our balance sheet combined with our strong operating results
resulted in our recent upgrade to investment grade status by Moody's Investors
Service.
"We ended the year on an extremely positive note with a 33% organic
increase in our fourth quarter sales and strong sales performances in all of
our regions. Our double-digit sales increase and our record $5.8 billion
backlog position us for a strong start to fiscal year 2006."
D.R. Horton, Inc., America's Builder, is the largest homebuilder in the
United States, delivering more than 51,000 homes in its fiscal year ended
September 30, 2005. Founded in 1978 in Fort Worth, Texas, D.R. Horton has
expanded its presence to include 74 markets in 25 states in the Midwest, Mid-
Atlantic, Southeast, Southwest and Western regions of the United 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.
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 Company's expected earnings
per share for the quarter ending December 31, 2005 and fiscal year 2006,
expected fiscal year 2006 revenues and homes closed and the expectation of a
strong start to fiscal year 2006 due to the Company's double-digit sales
increase and record $5.8 billion sales order backlog. 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; warranty and
product liability claims; our substantial debt; governmental regulations and
environmental matters; competitive conditions within the industry; the
availability of capital to the Company on favorable terms; and the Company's
ability to integrate 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: http://www.DRHORTON.com
D.R. HORTON, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Fiscal Year Ended
September 30, September 30,
2004 2005 2004 2005
(In millions, except per share amounts)
Homebuilding:
Revenues:
Home sales $3,410.4 $4,943.7 $10,491.1 $13,376.6
Land/lot sales 49.1 74.4 166.9 252.0
3,459.5 5,018.1 10,658.0 13,628.6
Cost of sales:
Home sales 2,604.8 3,697.9 8,094.7 9,977.7
Land/lot sales 30.2 57.2 102.6 162.6
2,635.0 3,755.1 8,197.3 10,140.3
Gross profit:
Home sales 805.6 1,245.8 2,396.4 3,398.9
Land/lot sales 18.9 17.2 64.3 89.4
824.5 1,263.0 2,460.7 3,488.3
Selling, general and
administrative expense 279.5 399.8 959.0 1,226.6
Interest expense --- 4.4 3.4 4.4
Other (income) (2.7) (4.3) (9.9) (15.7)
Operating income from
Homebuilding 547.7 863.1 1,508.2 2,273.0
Financial Services:
Revenues 51.1 78.6 182.8 235.1
General and administrative
expense 37.1 42.5 121.0 147.6
Interest expense 1.9 7.7 5.9 16.8
Other (income) (6.1) (12.9) (18.8) (34.9)
Operating income from
Financial Services 18.2 41.3 74.7 105.6
Income before income taxes 565.9 904.4 1,582.9 2,378.6
Provision for income taxes 216.3 340.6 607.8 908.1
Net income $349.6 $563.8 $975.1 $1,470.5
Basic:
Net income per share $1.12 $1.80 $3.14 $4.71
Weighted average number of
common shares* 311.0 312.8 310.5 312.2
Diluted:
Net income per share $1.11 $1.77 $3.09 $4.62
Weighted average number of
common shares* 316.3 318.9 316.0 318.1
Other Consolidated Financial
Data:
Interest amortized to home and
land/lot cost of sales $76.0 $66.3 $249.0 $225.0
Depreciation and amortization $15.2 $13.5 $49.6 $52.8
Interest incurred $60.8 $80.2 $242.6 $294.1
* reflects the four-for-three stock split of March 2005
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
As of September 30,
2004 2005
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $480.1 $1,111.6
Inventories:
Construction in progress and
finished homes 2,878.5 3,105.9
Residential lots - developed and
under development 3,529.0 5,174.3
Land held for development 6.2 6.2
Consolidated land inventory not
owned 153.7 200.4
6,567.4 8,486.8
Property and equipment (net) 91.9 107.2
Earnest money deposits and other assets 576.6 756.0
Goodwill 578.9 578.9
8,294.9 11,040.5
Financial Services:
Cash and cash equivalents 37.9 38.2
Mortgage loans held for sale 623.3 1,358.7
Other assets 29.1 77.4
690.3 1,474.3
$8,985.2 $12,514.8
LIABILITIES
Homebuilding:
Accounts payable $585.2 $820.7
Accrued expenses and other liabilities 756.9 1,196.9
Notes payable 3,006.5 3,660.1
4,348.6 5,677.7
Financial Services:
Accounts payable and other liabilities 16.8 24.0
Notes payable 492.7 1,249.5
509.5 1,273.5
4,858.1 6,951.2
Minority interests 166.4 203.2
STOCKHOLDERS' EQUITY
Common stock 3.1 3.2
Additional capital 1,599.2 1,624.8
Retained earnings 2,417.3 3,791.3
Treasury stock (at cost) (58.9) (58.9)
3,960.7 5,360.4
$8,985.2 $12,514.8
D.R. HORTON, INC.
($'s in millions)
NET SALES ORDERS
Three Months Ended September 30,
2004 2005
Units $'s Units $'s
Mid-Atlantic 1,136 $269.1 1,319 $338.0
Midwest 644 172.0 835 217.7
Southeast 1,631 365.0 2,102 550.5
Southwest 4,469 786.6 5,992 1,220.7
West 3,225 1,229.7 3,702 1,427.3
11,105 $2,822.4 13,950 $3,754.2
Fiscal Year Ended September 30,
2004 2005
Units $'s Units $'s
Mid-Atlantic 4,032 $1,009.7 5,072 $1,342.7
Midwest 2,261 634.5 3,093 821.5
Southeast 6,301 1,375.8 8,181 2,036.3
Southwest 18,146 3,086.7 21,375 4,227.8
West 14,523 5,299.5 15,511 6,215.1
45,263 $11,406.2 53,232 $14,643.4
HOMES CLOSED
Three Months Ended September 30,
2004 2005
Units $'s Units $'s
Mid-Atlantic 1,257 $300.4 1,615 $415.6
Midwest 960 257.8 1,175 317.7
Southeast 1,374 290.5 2,993 689.2
Southwest 5,252 872.1 7,262 1,352.6
West 4,609 1,689.6 5,577 2,168.6
13,452 $3,410.4 18,622 $4,943.7
Fiscal Year Ended September 30,
2004 2005
Units $'s Units $'s
Mid-Atlantic 3,894 $888.4 4,296 $1,087.1
Midwest 2,381 643.7 2,593 688.9
Southeast 5,137 1,041.3 8,032 1,826.5
Southwest 18,190 3,012.3 20,734 3,758.1
West 13,965 4,905.4 15,517 6,016.0
43,567 $10,491.1 51,172 $13,376.6
SALES ORDER BACKLOG
As of September 30,
2004 2005
Units $'s Units $'s
Mid-Atlantic 1,740 $492.2 2,516 $747.7
Midwest 861 269.7 1,361 402.2
Southeast 2,987 698.6 3,136 908.4
Southwest 6,632 1,195.3 7,273 1,665.0
West 4,964 1,912.7 4,958 2,111.9
17,184 $4,568.5 19,244 $5,835.2
SOURCE D.R. Horton, Inc.
CONTACT:
Stacey Dwyer, EVP of D.R. Horton, Inc., +1-817-390-8200
Web site: http://www.drhorton.com
