First Quarter Highlights * Net income increased 29% to $310.1 million * Diluted earnings per share increased 29% to $0.98 per share * Sales order backlog increased 30% to $6.2 billion (20,816 homes) * Net sales orders (dollars) increased 19% to $3.2 billion * Net sales orders (homes) increased 16% to 11,463 homes * Consolidated revenue increased 15% to $2.9 billion * Homebuilding operating margin improved 180 basis points to 16.9% * Stockholders' equity increased 34% to $5.6 billion * Homebuilding debt to total capitalization (net of cash) improved 110 basis points to 42.3% * Quarterly cash dividend payment increased by 50% to $.09 per shareFORT WORTH, Texas, Jan 19, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- D.R. Horton, Inc.,
America's Builder (NYSE: DHI), the largest homebuilder in the United States,
Thursday (January 19, 2006), reported that net income for its first fiscal
quarter ended December 31, 2005 increased 29% to $310.1 million ($0.98 per
diluted share), compared to $241.0 million ($0.76 per diluted share) for the
quarter ended December 31, 2004. First quarter homebuilding revenue increased
15% to $2.8 billion (9,891 homes closed) from $2.5 billion (9,680 homes
closed) in the year ago quarter.
The Company's sales order backlog at December 31, 2005 was a first quarter
record $6.2 billion (20,816 homes), an increase of 30% from $4.8 billion
(17,405 homes) a year ago. As previously reported, net sales orders for the
quarter increased 19% to $3.2 billion (11,463 homes) from $2.7 billion
(9,901 homes) for the same quarter 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 raising its diluted earnings per share guidance
for fiscal year 2006 to be in the range of $5.25 to $5.35 (based on
approximately 320 million diluted shares). The Company expects diluted
earnings per share for the quarter ending March 31, 2006 to be in the range of
$1.05 to $1.10 (based on approximately 319 million diluted shares).
The Company will host a conference call on Thursday, January 19, 2006 at
10:00 a.m. EST. 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 first quarter performance, where again we grew our net income at
a faster pace than our revenues. The Company's continued double-digit sales
momentum and our first quarter record $6.2 billion backlog provide a solid
foundation for achieving our 29th consecutive year of record revenues and
earnings in 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 77 markets in 26 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, (iii) the Company's expectation of
diluted earnings per share for the quarter ending March 31, 2006 to be in the
range of $1.05 to $1.10 and (iv) the Company's expectation that its continued
double-digit sales momentum and first quarter record $6.2 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
December 31,
2004 2005
(In millions, except
per share amounts)
Homebuilding:
Revenues:
Home sales $2,449.1 $2,789.1
Land/lot sales 25.0 52.7
2,474.1 2,841.8
Cost of sales:
Home sales 1,831.5 2,017.1
Land/lot sales 15.6 19.3
1,847.1 2,036.4
Gross profit:
Home sales 617.6 772.0
Land/lot sales 9.4 33.4
627.0 805.4
Selling, general and administrative
expense 257.7 325.7
Interest expense --- 4.5
Other (income) (4.9) (4.9)
Operating income from Homebuilding 374.2 480.1
Financial Services:
Revenues 46.0 61.3
General and administrative expense 32.7 47.3
Interest expense 2.4 8.2
Other (income) (6.7) (14.2)
Operating income from Financial Services 17.6 20.0
Income before income taxes 391.8 500.1
Provision for income taxes 150.8 190.0
Net income $241.0 $310.1
Basic:
Net income per share $0.77 $0.99
Weighted average number of common shares* 311.3 312.9
Diluted:
Net income per share $0.76 $0.98
Weighted average number of common shares* 317.0 317.6
Other Consolidated Financial Data:
Interest amortized to home and
land/lot cost of sales $42.9 $43.8
Depreciation and amortization $14.0 $12.7
Interest incurred $60.9 $81.8
* reflects the four-for-three stock split of March 2005
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
As of
December 31, 2005
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $182.5
Inventories:
Construction in progress and finished homes 3,564.8
Residential land and lots - developed and
under development 6,274.5
Land held for development 60.9
Consolidated land inventory not owned 173.9
10,074.1
Property and equipment (net) 112.9
Earnest money deposits and other assets 812.1
Goodwill 578.9
11,760.5
Financial Services:
Cash and cash equivalents 42.7
Mortgage loans held for sale 907.1
Other assets 103.0
1,052.8
$12,813.3
LIABILITIES
Homebuilding:
Accounts payable $765.5
Accrued expenses and other liabilities 1,123.9
Notes payable 4,300.0
6,189.4
Financial Services:
Accounts payable and other liabilities 20.3
Notes payable 814.7
835.0
7,024.4
Minority interests 176.0
STOCKHOLDERS' EQUITY
Common stock 3.2
Additional capital 1,632.2
Retained earnings 4,073.2
Treasury stock (at cost) (95.7)
5,612.9
$12,813.3
D.R. HORTON, INC.
($'s in millions)
NET SALES ORDERS
Three Months Ended December 31,
2004 2005
Homes $'s Homes $'s
Mid-Atlantic 1,037 $276.9 1,111 $289.5
Midwest 429 124.8 558 156.4
Southeast 1,759 410.6 1,820 479.5
Southwest 3,938 738.8 4,783 1,014.3
West 2,738 1,104.6 3,191 1,227.1
9,901 $2,655.7 11,463 $3,166.8
HOMES CLOSED
Three Months Ended December 31,
2004 2005
Homes $'s Homes $'s
Mid-Atlantic 833 $208.6 958 $260.7
Midwest 419 111.5 509 136.7
Southeast 1,394 306.2 1,581 392.2
Southwest 4,104 705.0 3,689 745.5
West 2,930 1,117.8 3,154 1,254.0
9,680 $2,449.1 9,891 $2,789.1
SALES ORDER BACKLOG
As of December 31,
2004 2005
Homes $'s Homes $'s
Mid-Atlantic 1,944 $560.5 2,669 $776.6
Midwest 871 283.1 1,410 422.0
Southeast 3,352 802.9 3,375 995.7
Southwest 6,466 1,229.1 8,367 1,933.7
West 4,772 1,899.6 4,995 2,085.0
17,405 $4,775.2 20,816 $6,213.0
SOURCE D.R. Horton, Inc.
Bill Wheat, CFO of D.R. Horton, Inc., +1-817-390-8200
