Quarter Highlights
* Diluted Earnings Per Share Increased 21% to $1.11 Per Share
* Net Income Increased 20% to $352.8 Million
* Consolidated Revenue Increased 25% to $3.6 Billion
* Homes Closed Increased 19% to 12,570
* Sales Order Backlog Increased 15% to An All-Time Record $7.1 Billion
(24,017 homes)
* Net sales Orders Increased 10% to 15,771 Homes
* Stockholders' Equity Increased 33% to $5.9 Billion
* S&P Upgraded D.R. Horton's Senior Debt to an Investment Grade Rating
of BBB-
* D.R. Horton Jumped to No. 162 in the FORTUNE 500
FORT WORTH, Texas, April 18 /PRNewswire-FirstCall/ -- D.R. Horton, Inc.,
America's Builder (NYSE: DHI), the largest homebuilder in the United States,
Tuesday (April 18, 2006), reported that net income for the second fiscal
quarter ended March 31, 2006 increased 20% to $352.8 million ($1.11 per
diluted share), compared to $294.0 million ($0.92 per diluted share) for the
quarter ended March 31, 2005. Second quarter consolidated revenue increased
25% to $3.6 billion from $2.9 billion in second quarter of fiscal year 2005.
Homes closed increased 19% to 12,570 from 10,601 in the year ago quarter.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040722/DHILOGO )
For the six months ended March 31, 2006, net income increased 24% to
$662.9 million ($2.09 per diluted share), compared to $535.0 million
($1.68 per diluted share) for the same period of fiscal year 2005.
Consolidated revenue for the six months increased 20% to $6.5 billion from
$5.4 billion for the same period of fiscal 2005. Homes closed in the six-
month period increased 11% to 22,461 from 20,281 for the same period of fiscal
2005. The Company also reported a record March 31, 2006 sales order backlog
of $7.1 billion (24,017 homes), an increase of 15% from $6.2 billion
(21,205 homes) a year ago.
As previously reported, net sales orders for the second quarter ended
March 31, 2006 increased 10% to 15,771 homes ($4.4 billion), compared to
14,401 homes ($4.1 billion) for the same quarter last year. Net sales orders
for the first six months of fiscal 2006 increased 12% to 27,234 homes
($7.5 billion), compared to 24,302 homes ($6.8 billion) for the same period
last year.
For fiscal year 2006, the Company continues to expect to close
approximately 58,000 homes and generate consolidated revenues in excess of
$15.5 billion. The Company is reiterating its diluted earnings per share
guidance for fiscal year 2006 to be in the range of $5.25 to $5.35
(on approximately 318 million diluted shares).
The Company will host a conference call on Tuesday, April 18, 2006 at
10:00 a.m. ET. The dial-in number is 800-374-9096, and the call will also be
webcast from http://www.DRHORTON.com on the "Investor Relations" page.
Donald R. Horton, Chairman of the Board, said, "We are very pleased with
the Company's solid 21% earnings growth this quarter. The Company's strong
performance in the first half of fiscal 2006, double-digit sales momentum and
record $7.1 billion sales order backlog provide a solid foundation for
achieving our 29th consecutive year of record revenues and earnings. The
Company's consistently excellent financial performance, strong balance sheet
and transparent financial statements have now been recognized with investment
grade ratings from all three rating agencies after a recent upgrade by
Standard and Poor's."
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 82 markets in 27 states in the Mid-Atlantic,
Midwest, 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 (i) the Company's expectation of
58,000 homes closed and total revenues in excess of $15.5 billion in fiscal
year 2006, (ii) the Company's expectation of fiscal year 2006 diluted earnings
per share in the range of $5.25 to $5.35 and (iii) the Company's expectation
that its continued double-digit sales momentum and second quarter record $7.1
billion backlog provide a solid foundation for achieving its 29th consecutive
year of record revenues and earnings in fiscal year 2006. Factors that may
cause the actual results to be materially different from the future results
expressed by the forward-looking statements include, but are not limited to:
changes in general economic, real estate or other conditions; changes in
interest rates, the availability of mortgage financing or increases in the
costs of owning a home; governmental regulations and environmental matters;
the Company's substantial debt; competitive conditions within the industry;
the availability of capital to the Company on favorable terms; the Company's
ability to successfully effect its growth strategies; and warranty and product
liability claims. Additional information about issues that could lead to
material changes in performance is contained in D.R. Horton's annual report on
Form 10-K, which is filed with the Securities and Exchange Commission.
WEBSITE ADDRESS: http://www.DRHORTON.com
D.R. HORTON, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended Six months ended
March 31, March 31,
2005 2006 2005 2006
($'s in millions, except per share amounts)
Homebuilding:
Revenues:
Home sales $2,706.8 $3,472.3 $5,155.8 $6,261.4
Land/lot sales 120.1 54.2 145.2 106.9
2,826.9 3,526.5 5,301.0 6,368.3
Cost of sales:
Home sales 2,034.7 2,594.8 3,866.1 4,612.0
Land/lot sales 72.7 20.1 88.4 39.4
2,107.4 2,614.9 3,954.5 4,651.4
Gross profit:
Home sales 672.1 877.5 1,289.7 1,649.4
Land/lot sales 47.4 34.1 56.8 67.5
719.5 911.6 1,346.5 1,716.9
Selling, general and
administrative expense 267.0 364.9 524.7 690.5
Interest expense --- 10.6 --- 15.0
Other (income) (5.9) (5.6) (10.9) (10.5)
Operating income from
Homebuilding 458.4 541.7 832.7 1,021.9
Financial Services:
Revenues 49.8 71.1 95.8 132.4
General and
administrative expense 33.9 49.4 66.6 96.8
Interest expense 2.6 7.8 5.0 15.9
Other (income) (6.3) (13.4) (13.0) (27.6)
Operating income from
Financial Services 19.6 27.3 37.2 47.3
Income before income taxes 478.0 569.0 869.9 1,069.2
Provision for income taxes 184.0 216.2 334.9 406.3
Net income $294.0 $352.8 $535.0 $662.9
Basic:
Net income per share $0.94 $1.13 $1.72 $2.12
Weighted average number
of common shares 312.0 312.4 311.8 312.7
Diluted:
Net income per share $0.92 $1.11 $1.68 $2.09
Weighted average number
of common shares 318.0 316.7 317.6 317.1
Other Consolidated
Financial Data:
Interest amortized to
home and land/lot cost
of sales $56.0 $60.6 $98.9 $104.4
Depreciation and
amortization $12.9 $13.7 $26.8 $26.4
Interest incurred $80.0 $99.7 $140.9 $181.5
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
As of
March 31, 2006
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $206.3
Inventories:
Construction in progress and finished homes 4,422.0
Residential land and lots - developed
and under development 6,123.9
Land held for development 130.7
Consolidated land inventory not owned 175.8
10,852.4
Property and equipment (net) 115.2
Earnest money deposits and other assets 847.3
Goodwill 578.9
12,600.1
Financial Services:
Cash and cash equivalents 71.9
Mortgage loans held for sale 717.2
Other assets 121.8
910.9
$13,511.0
LIABILITIES
Homebuilding:
Accounts payable $818.1
Accrued expenses and other liabilities 1,025.4
Notes payable 4,848.7
6,692.2
Financial Services:
Accounts payable and other liabilities 21.8
Notes payable 675.0
696.8
7,389.0
Minority interests 178.0
STOCKHOLDERS' EQUITY
Common stock 3.2
Additional capital 1,641.7
Retained earnings 4,394.8
Treasury stock (at cost) (95.7)
5,944.0
$13,511.0
D.R. HORTON, INC.
($'s in millions)
NET SALES ORDERS
Three Months Ended March 31,
2005 2006
Homes $'s Homes $'s
Mid-Atlantic 1,263 $346.2 1,373 $336.9
Midwest 877 224.4 593 169.0
Southeast 1,974 498.0 2,449 585.9
Southwest 5,638 1,109.8 6,358 1,280.8
West 4,649 1,920.2 4,998 1,990.6
14,401 $4,098.6 15,771 $4,363.2
Six Months Ended March 31,
2005 2006
Homes $'s Homes $'s
Mid-Atlantic 2,300 $623.1 2,484 $626.4
Midwest 1,306 349.2 1,151 325.4
Southeast 3,733 908.6 4,269 1,065.4
Southwest 9,576 1,848.6 11,141 2,295.1
West 7,387 3,024.9 8,189 3,217.7
24,302 $6,754.4 27,234 $7,530.0
HOMES CLOSED
Three Months Ended March 31,
2005 2006
Homes $'s Homes $'s
Mid-Atlantic 870 $209.9 1,164 $297.9
Midwest 436 113.0 758 213.4
Southeast 1,703 383.3 2,114 541.8
Southwest 4,549 807.7 4,681 911.3
West 3,043 1,192.9 3,853 1,507.9
10,601 $2,706.8 12,570 $3,472.3
Six Months Ended March 31,
2005 2006
Homes $'s Homes $'s
Mid-Atlantic 1,703 $418.5 2,122 $558.6
Midwest 855 224.5 1,267 350.1
Southeast 3,097 689.4 3,695 934.0
Southwest 8,653 1,512.7 8,370 1,656.8
West 5,973 2,310.7 7,007 2,761.9
20,281 $5,155.8 22,461 $6,261.4
SALES ORDER BACKLOG
As of March 31,
2005 2006
Homes $'s Homes $'s
Mid-Atlantic 2,337 $696.8 2,878 $815.6
Midwest 1,312 394.4 1,245 377.6
Southeast 3,623 917.7 3,710 1,039.8
Southwest 7,555 1,531.2 10,044 2,303.2
West 6,378 2,626.9 6,140 2,567.7
21,205 $6,167.0 24,017 $7,103.9
SOURCE:
D.R. Horton, Inc.
CONTACT: Stacey Dwyer, EVP of D.R. Horton, Inc., +1-817-390-8200/
Web site:
http://www.DRHORTON.com
