Quarter Highlights
* Net income increased 56% to $294.0 million
* Diluted earnings per share increased 53% to $0.92 per share
* Sales order backlog increased 33% to all-time record $6.2 billion
(21,205 homes)
* Net sales orders increased 23% to $4.1 billion (14,401 homes)
* Consolidated revenue increased 23% to $2.9 billion
* Gross margin on home sales revenue improved 250 basis points to 24.8%
* Stockholders' equity increased 32% to $4.5 billion
* Homebuilding debt to total capitalization (net of cash) improved
80 basis points to 42.5%
FORT WORTH, Texas, April 19 /PRNewswire-FirstCall/ -- D.R. Horton, Inc.
(NYSE: DHI), the largest builder in the United States, Tuesday (April 19,
2005), reported that net income for the second fiscal quarter ended March 31,
2005 increased 56% to $294.0 million ($0.92 per diluted share), compared to
$188.6 million ($0.60 per diluted share) for the quarter ended March 31, 2004.
Second quarter consolidated revenue increased 23% to $2.9 billion from
$2.3 billion in the year ago quarter. Homes closed for the second quarter
increased 8% to 10,601 homes from 9,823 homes a year ago.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040722/DHILOGO )
For the six months ended March 31, 2005, net income increased 43% to
$535.0 million ($1.68 per diluted share), compared to $374.2 million
($1.18 per diluted share) for the same period of fiscal 2004. Consolidated
revenue for the six months increased 19% to $5.4 billion, from $4.5 billion
for the same period of fiscal 2004. Homes closed increased 6% to 20,281 homes
from 19,065 homes for the same period of fiscal 2004.
The Company reported a record March 31, 2005 sales order backlog of
$6.2 billion (21,205 homes), an increase of 33% from $4.6 billion
(18,137 homes) a year ago. As previously reported, net sales orders for the
second quarter ended March 31, 2005 increased 23% to $4.1 billion
(14,401 homes), compared to $3.3 billion (13,480 homes) for the same quarter
of fiscal 2004. Net sales orders for the first six months of fiscal 2005
increased 26% to $6.8 billion (24,302 homes), compared to $5.4 billion
(21,714 homes) for the same period of fiscal 2004.
The Company expects diluted earnings per share for the quarter ended
June 30, 2005 to be in the range of $0.98 to $1.02 (assuming approximately
319 million diluted shares). The Company is raising its guidance for fiscal
year 2005 to be in the range of $3.95 to $4.00 (assuming approximately
318.5 million diluted shares). This range represents a 28% to 29% increase in
earnings per share over the $3.09 reported in fiscal year 2004, and is based
on projected consolidated revenue of more than $13.0 billion (approximately
50,000 homes closed).
D.R. Horton's earnings release conference call will be Tuesday, April 19,
2005 at 11:00 a.m. EDT. 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 extremely pleased
with the Company's second quarter performance, where once again we grew our
net income at a faster pace than our revenues. We are especially proud that
we have achieved these results organically by continuing to increase our
national market share. The Company's continued sales momentum combined with
our record $6.2 billion sales order backlog, provide a solid foundation for
achieving our 28th consecutive year of record revenues and earnings in fiscal
year 2005."
D.R. Horton, Inc., America's Builder, is the largest homebuilder in the
United States, delivering more than 43,000 homes in its fiscal year ended
September 30, 2004. Founded in 1978 in Fort Worth, Texas, D.R. Horton has
expanded its presence to include 67 markets in 21 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 $80,000 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
diluted earnings per share for the quarter ended June 30, 2005 to be in the
range of $0.98 to $1.02 (ii) the Company's expectation of diluted earnings per
share for the 2005 fiscal year to be in the range of $3.95 to $4.00 based on
projected consolidated revenue of more than $13.0 billion (approximately
50,000 homes closed), and (iii) the Company achieving its 28th consecutive
year of record revenues and earnings in fiscal year 2005. 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; 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.
http://www.DRHORTON.com
D.R. HORTON, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended Six months ended
March 31, March 31,
2004 2005 2004 2005
(In millions, except per share amounts)
Homebuilding:
Revenues:
Home sales $2,250.5 $2,706.8 $4,385.1 $5,155.8
Land/lot sales 42.7 120.1 71.7 145.2
2,293.2 2,826.9 4,456.8 5,301.0
Cost of sales:
Home sales 1,748.8 2,034.7 3,403.1 3,866.1
Land/lot sales 27.3 72.7 43.4 88.4
1,776.1 2,107.4 3,446.5 3,954.5
Gross profit:
Home sales 501.7 672.1 982.0 1,289.7
Land/lot sales 15.4 47.4 28.3 56.8
517.1 719.5 1,010.3 1,346.5
Selling, general and
administrative expense 222.7 267.0 435.2 524.7
Interest expense 3.1 --- 3.3 ---
Other (income) expense 2.8 (5.9) 0.2 (10.9)
Operating income from
Homebuilding 288.5 458.4 571.6 832.7
Financial Services:
Revenues 42.0 49.8 83.0 95.8
General and administrative
expense 26.2 33.9 51.7 66.6
Interest expense 1.1 2.6 2.4 5.0
Other (income) (3.4) (6.3) (7.9) (13.0)
Operating income from Financial
Services 18.1 19.6 36.8 37.2
Income before income taxes 306.6 478.0 608.4 869.9
Provision for income taxes 118.0 184.0 234.2 334.9
Net income $188.6 $294.0 $374.2 $535.0
Basic:
Net income per share $0.61 $0.94 $1.21 $1.72
Weighted average number of
common shares* 310.4 312.0 310.1 311.8
Diluted:
Net income per share $0.60 $0.92 $1.18 $1.68
Weighted average number of
common shares* 316.1 318.0 315.9 317.6
Other Consolidated Financial Data
Interest amortized to home and
land/lot cost of sales $54.9 $56.0 $107.7 $98.9
Depreciation and amortization $10.4 $12.9 $21.9 $26.8
Interest incurred $64.2 $80.0 $120.4 $140.9
* adjusted for the four-for-three stock split of March 2005
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
As of March 31,
2005
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $526.1
Inventories:
Construction in progress and finished homes 3,584.5
Residential lots - developed and under development 4,121.2
Land held for development 6.3
Consolidated land inventory not owned 214.7
7,926.7
Property and equipment (net) 94.0
Earnest money deposits and other assets 690.6
Goodwill 578.9
9,816.3
Financial Services:
Cash and cash equivalents 46.7
Mortgage loans held for sale 648.3
Other assets 29.2
724.2
$10,540.5
LIABILITIES
Homebuilding:
Accounts payable $718.2
Accrued and other liabilities 775.2
Liabilities associated with consolidated land
inventory not owned 10.4
Notes payable 3,823.6
5,327.4
Financial Services:
Accounts payable and other liabilities 13.4
Notes payable 517.0
530.4
5,857.8
Minority interests 213.3
STOCKHOLDERS' EQUITY
Common stock 3.1
Additional capital 1,613.1
Retained earnings 2,912.1
Treasury stock (at cost) (58.9)
4,469.4
$10,540.5
D.R. HORTON, INC.
($'s in millions)
NET SALES ORDERS
Three Months Ended March 31,
2004 2005
Units $'s Units $'s
Mid-Atlantic 1,034 $277.3 1,263 $346.2
Midwest 620 175.1 877 224.4
Southeast 1,758 365.0 1,974 498.0
Southwest 5,435 906.1 5,638 1,109.8
West 4,633 1,610.3 4,649 1,920.2
13,480 $3,333.8 14,401 $4,098.6
Six Months Ended March 31,
2004 2005
Units $'s Units $'s
Mid-Atlantic 1,749 $444.0 2,300 $623.1
Midwest 1,031 300.3 1,306 349.2
Southeast 2,931 616.6 3,733 908.6
Southwest 8,715 1,460.9 9,576 1,848.6
West 7,288 2,545.7 7,387 3,024.9
21,714 $5,367.5 24,302 $6,754.4
HOMES CLOSED
Three Months Ended March 31,
2004 2005
Units $'s Units $'s
Mid-Atlantic 801 $180.5 870 $209.9
Midwest 443 119.2 436 113.0
Southeast 1,282 251.5 1,703 383.3
Southwest 4,432 729.5 4,549 807.7
West 2,865 969.8 3,043 1,192.9
9,823 $2,250.5 10,601 $2,706.8
Six Months Ended March 31,
2004 2005
Units $'s Units $'s
Mid-Atlantic 1,643 $362.0 1,703 $418.5
Midwest 887 238.5 855 224.5
Southeast 2,403 469.0 3,097 689.4
Southwest 8,373 1,370.9 8,653 1,512.7
West 5,759 1,944.7 5,973 2,310.7
19,065 $4,385.1 20,281 $5,155.8
SALES ORDER BACKLOG
As of March 31,
2004 2005
Units $'s Units $'s
Mid-Atlantic 1,708 $452.8 2,337 $696.8
Midwest 1,125 340.7 1,312 394.4
Southeast 2,351 511.8 3,623 917.7
Southwest 7,018 1,210.9 7,555 1,531.2
West 5,935 2,119.5 6,378 2,626.9
18,137 $4,635.7 21,205 $6,167.0
SOURCE D.R. Horton, Inc.
04/19/2005
/CONTACT: Stacey Dwyer, EVP of D.R. Horton, Inc., +1-817-390-8200/
/Web site: http://www.DRHORTON.com /
(DHI)
