FORT WORTH, Texas, Apr 19, 2007 (BUSINESS WIRE) -- D.R. Horton, Inc. (NYSE:DHI), America's Builder, the largest
homebuilder in the United States, Thursday (April 19, 2007), reported
net income for its second fiscal quarter ended March 31, 2007 of $51.7
million ($0.16 per diluted share), which included pre-tax charges to
cost of sales of $67.3 million ($0.13 per diluted share) for inventory
impairments and $13.9 million ($0.03 per diluted share) for write-offs
of deposits and pre-acquisition costs related to land option contracts
that the Company does not intend to pursue. Net income for the same
quarter of fiscal 2006 was $352.8 million ($1.11 per diluted share).
Homebuilding revenue for the second quarter of fiscal 2007 totaled
$2.6 billion, compared to $3.5 billion in the same quarter of fiscal
2006. Homes closed in the current quarter totaled 9,792, compared to
12,570 homes closed in the year ago quarter.
For the six months ended March 31, 2007, net income totaled $161.4
million ($0.51 per diluted share), which included pre-tax charges to
cost of sales of $108.2 million ($0.21 per diluted share) for
inventory impairments and $50.6 million ($0.10 per diluted share) for
write-offs of deposits and pre-acquisition costs related to land
option contracts that the Company does not intend to pursue. Net
income for the six months ended March 31, 2006 was $662.9 million
($2.09 per diluted share). Homebuilding revenue for the six months
ended March 31, 2007 totaled $5.4 billion compared to $6.4 billion for
the same period of fiscal 2006. Homes closed in the six-month period
totaled 19,994, compared to 22,461 homes closed in the same period of
fiscal 2006.
The Company's sales backlog of homes under contract at March 31,
2007 was 16,885 homes ($4.8 billion), compared to 24,017 homes ($7.1
billion) at March 31, 2006. As previously reported, net sales orders
for the second quarter ended March 31, 2007 totaled 9,983 homes ($2.6
billion), compared to 15,771 homes ($4.4 billion) for the same quarter
of fiscal 2006. Net sales orders for the first six months of fiscal
2007 were 18,754 homes ($4.9 billion), compared to 27,234 homes ($7.5
billion) for the same period of fiscal 2006.
Donald R. Horton, Chairman of the Board, said, "Market conditions
in the homebuilding industry continue to be challenging in most of our
markets as inventory levels of both new and existing homes remain
high, and further increases in the use of sales incentives continue to
put pressure on profit margins. Our focus on managing our balance
sheet in a disciplined manner resulted in positive cash flows from
operations for the third consecutive quarter. We also improved our
ratio of homebuilding debt to total capitalization, net of cash, to
40.9% from 43.9% a year ago."
The Company will host a conference call on Thursday, April 19,
2007 at 10:00 a.m. Eastern Daylight Time. The dial-in number is
800-374-9096, and the call will also be webcast from www.drhorton.com
on the "Investor Relations" page.
D.R. Horton, Inc., America's Builder, is the largest homebuilder
in the United States, delivering more than 53,000 homes in its fiscal
year ended September 30, 2006. Founded in 1978 in Fort Worth, Texas,
D.R. Horton has expanded its presence to include 85 markets in 27
states in the Northeast, Southeast, South Central, Southwest,
California and West 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 $900,000. D.R. Horton also
provides mortgage financing and title services for homebuyers through
its mortgage and title subsidiaries.
Portions of this document may constitute "forward-looking
statements" as defined by the Private Securities Litigation Reform Act
of 1995. Factors that may cause the actual results to be materially
different from the future results expressed by the forward-looking
statements include, but are not limited to: changes in general
economic, real estate, construction and other business conditions;
changes in interest rates, the availability of mortgage financing or
increases in the costs of owning a home; governmental regulations and
environmental matters; the Company's substantial debt; competitive
conditions within the industry; the availability of capital to the
Company on favorable terms; the Company's ability to successfully
effect its growth strategies; and warranty and product liability
claims. Additional information about issues that could lead to
material changes in performance is contained in D.R. Horton's annual
report on Form 10-K and most recent quarterly report on Form 10-Q,
which are filed with the Securities and Exchange Commission.
WEBSITE ADDRESS: www.drhorton.com
D.R. HORTON, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended Six months ended
March 31, March 31,
--------------------- ---------------------
2006 2007 2006 2007
---------- ---------- ---------- ----------
($'s in millions, except per share
amounts)
Homebuilding:
Revenues:
Home sales $3,472.3 $2,521.5 $6,261.4 $5,282.6
Land/lot sales 54.2 94.7 106.9 135.1
--------- --------- --------- ---------
3,526.5 2,616.2 6,368.3 5,417.7
--------- --------- --------- ---------
Cost of sales:
Home sales 2,587.7 2,074.4 4,601.1 4,321.3
Land/lot sales 20.1 89.1 39.4 122.1
Inventory impairments
and land option cost
write-offs 7.1 81.2 10.9 158.8
--------- --------- --------- ---------
2,614.9 2,244.7 4,651.4 4,602.2
--------- --------- --------- ---------
Gross profit:
Home sales 884.6 447.1 1,660.3 961.3
Land/lot sales 34.1 5.6 67.5 13.0
Inventory impairments
and land option cost
write-offs (7.1) (81.2) (10.9) (158.8)
--------- --------- --------- ---------
911.6 371.5 1,716.9 815.5
--------- --------- --------- ---------
Selling, general and
administrative expense 364.9 296.0 690.5 591.3
Loss on early retirement
of debt 10.6 - 15.0 -
Other (income) (5.6) (0.6) (10.5) (1.7)
--------- --------- --------- ---------
Operating income from
Homebuilding 541.7 76.1 1,021.9 225.9
--------- --------- --------- ---------
Financial Services:
Revenues 71.1 41.9 132.4 108.4
General and administrative
expense 49.4 38.4 96.8 83.4
Interest expense 7.8 6.8 15.9 16.4
Other (income) (13.4) (10.6) (27.6) (25.9)
--------- --------- --------- ---------
Operating income from
Financial Services 27.3 7.3 47.3 34.5
--------- --------- --------- ---------
Income before income taxes 569.0 83.4 1,069.2 260.4
Provision for income taxes 216.2 31.7 406.3 99.0
--------- --------- --------- ---------
Net income $352.8 $51.7 $662.9 $161.4
========= ========= ========= =========
Basic:
Net income per share $1.13 $0.16 $2.12 $0.51
========= ========= ========= =========
Weighted average number of
common shares 312.4 313.9 312.7 313.7
========= ========= ========= =========
Diluted:
Net income per share $1.11 $0.16 $2.09 $0.51
========= ========= ========= =========
Weighted average number of
common shares 316.7 316.1 317.1 315.8
========= ========= ========= =========
Other Consolidated
Financial Data:
Interest amortized to home
and land/lot cost of
sales $60.6 $56.4 $104.4 $110.7
========= ========= ========= =========
Depreciation and
amortization $13.7 $16.3 $26.4 $32.0
========= ========= ========= =========
Interest incurred $89.1 $85.2 $166.5 $172.9
========= ========= ========= =========
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
As of
March 31, 2007
---------------
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $68.2
Inventories:
Construction in progress and finished homes 4,182.7
Residential land and lots - developed and under
development 6,725.3
Land held for development 204.3
Consolidated land inventory not owned 96.9
---------------
11,209.2
Property and equipment, net 125.1
Earnest money deposits and other assets 760.8
Goodwill 578.9
---------------
12,742.2
---------------
Financial Services:
Cash and cash equivalents 150.4
Mortgage loans held for sale 568.6
Other assets 49.3
---------------
768.3
---------------
Total assets $13,510.5
===============
LIABILITIES
Homebuilding:
Accounts payable $777.5
Accrued expenses and other liabilities 960.5
Notes payable 4,592.4
---------------
6,330.4
---------------
Financial Services:
Accounts payable and other liabilities 29.2
Notes payable 508.1
---------------
537.3
---------------
6,867.7
---------------
Minority interests 103.3
---------------
STOCKHOLDERS' EQUITY
Common stock 3.2
Additional capital 1,677.7
Retained earnings 4,954.3
Treasury stock, at cost (95.7)
---------------
6,539.5
---------------
Total liabilities and stockholders' equity $13,510.5
===============
D.R. HORTON, INC.
($'s in millions)
NET SALES ORDERS
Three Months Ended March 31,
-----------------------------------
2006 2007
----------------- -----------------
Homes Value Homes Value
------- --------- ------ ----------
Northeast 1,990 $510.8 1,564 $409.2
Southeast 2,040 523.5 1,429 315.7
South Central 4,151 704.0 2,734 490.2
Southwest 3,537 918.0 2,171 499.8
California 2,697 1,236.1 1,107 533.5
West 1,356 470.8 978 350.9
------- --------- ------ ----------
15,771 $4,363.2 9,983 $2,599.3
======= ========= ====== ==========
NET SALES ORDERS
Six Months Ended March 31,
-----------------------------------
2006 2007
----------------- -----------------
Homes Value Homes Value
------- --------- ------- ---------
Northeast 3,684 $967.7 2,719 $722.3
Southeast 3,835 992.0 2,801 637.3
South Central 6,888 1,176.6 4,657 838.7
Southwest 6,250 1,654.6 4,470 985.8
California 4,329 1,949.0 2,443 1,106.2
West 2,248 790.1 1,664 601.9
------- --------- ------- ---------
27,234 $7,530.0 18,754 $4,892.2
======= ========= ======= =========
HOMES CLOSED
Three Months Ended March 31,
-----------------------------------
2006 2007
----------------- -----------------
Homes Value Homes Value
------- --------- ------ ----------
Northeast 1,951 $517.1 1,413 $366.2
Southeast 2,051 531.6 1,433 343.3
South Central 3,202 532.8 2,668 477.4
Southwest 2,446 649.9 2,505 598.8
California 1,919 878.5 1,038 476.7
West 1,001 362.4 735 259.1
------- --------- ------ ----------
12,570 $3,472.3 9,792 $2,521.5
======= ========= ====== ==========
HOMES CLOSED
Six Months Ended March 31,
-----------------------------------
2006 2007
----------------- -----------------
Homes Value Homes Value
------- --------- ------- ---------
Northeast 3,427 $916.5 2,834 $747.0
Southeast 3,623 921.7 2,922 708.7
South Central 5,536 928.3 5,190 927.9
Southwest 4,551 1,216.4 4,883 1,185.6
California 3,451 1,604.8 2,621 1,172.3
West 1,873 673.7 1,544 541.1
------- --------- ------- ---------
22,461 $6,261.4 19,994 $5,282.6
======= ========= ======= =========
SALES ORDER BACKLOG
As of March 31,
-----------------------------------
2006 2007
----------------- -----------------
Homes Value Homes Value
------- --------- ------- ---------
Northeast 4,151 $1,200.1 2,787 $772.2
Southeast 3,331 979.8 2,027 562.5
South Central 4,327 772.5 3,680 688.6
Southwest 6,767 1,821.0 5,341 1,350.4
California 3,800 1,748.0 1,910 975.5
West 1,641 582.5 1,140 445.5
------- --------- ------- ---------
24,017 $7,103.9 16,885 $4,794.7
======= ========= ======= =========
SOURCE: D.R. Horton, Inc.
D.R. Horton, Inc., Fort Worth
Stacey Dwyer, EVP, 817-390-8200
