Quarter Highlights
- Sales contract backlog increased 34% to $4.8 billion (17,405 homes)
- Net sales orders increased 31% to $2.7 billion (9,901 homes)
- Net income increased 30% to $241.0 million
- Diluted earnings per share increased 29% to $1.01 per share
- Consolidated revenue increased 14% to $2.5 billion
- Gross margin on homebuilding revenue improved 250 basis points to
25.3%
- Stockholders' equity increased 30% to $4.2 billion
FORT WORTH, Texas, Jan. 20 /PRNewswire-FirstCall/ -- D.R. Horton, Inc.
(NYSE: DHI) Thursday (January 20, 2005), reported that net income for the
first fiscal quarter ended December 31, 2004 increased 30% to $241.0 million
($1.01 per diluted share), compared to $185.6 million ($0.78 per diluted
share) for the quarter ended December 31, 2003. First quarter consolidated
revenue increased 14% to $2.5 billion from $2.2 billion in the year ago
quarter. Homes closed for the first quarter increased 5% to 9,680 homes from
9,242 homes a year ago.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040722/DHILOGO )
The Company reported a record December 31, 2004 sales contract backlog of
$4.8 billion (17,405 homes), an increase of 34% from $3.6 billion
(14,480 homes) a year ago. As previously reported, net sales orders for the
quarter increased 31% to $2.7 billion (9,901 homes) from $2.0 billion
(8,234 homes) for the same quarter last year.
The Company expects diluted earnings per share for the quarter ended
March 31, 2005 to be in the range of $1.00 to $1.05 (assuming approximately
237.8 million diluted shares). The Company is raising its guidance for fiscal
year 2005 to be in the range of $4.75 to $4.90 (assuming approximately
238 million diluted shares). This range represents a 16% to 19% increase in
earnings per share over the $4.11 reported in fiscal year 2004, and is based
on projected consolidated revenues of more than $12.5 billion (approximately
50,000 homes closed).
D.R. Horton's earnings release conference call will be Thursday,
January 20, 2005 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 extremely pleased
with the Company's first quarter performance, where once again we grew our net
income at a faster pace than our revenues. The Company's continued double-
digit sales momentum combined with our record $4.8 billion backlog, provide a
solid foundation for achieving our 28th consecutive year of record revenues
and earnings in fiscal year 2005."
As of Monday, January 24, 2005, D.R. Horton's corporate headquarters will
be located at 301 Commerce Street, Suite 500, Fort Worth, Texas 76102. The
Company's new telephone number will be 817-390-8200.
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 63 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 March 31, 2005 to be in the
range of $1.00 to $1.05, (ii) the Company's expectation of diluted earnings
per share for the 2005 fiscal year to be in the range of $4.75 to $4.90 based
on projected consolidated revenues of more than $12.5 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; a change in the
Company's capital structure; 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
December 31,
2003 2004
(In millions, except per share amounts)
Homebuilding:
Revenues
Home sales $2,134.6 $2,449.1
Land/lot sales 29.0 25.0
2,163.6 2,474.1
Cost of sales
Home sales 1,654.3 1,831.5
Land/lot sales 16.0 15.6
1,670.3 1,847.1
Gross profit
Home sales 480.3 617.6
Land/lot sales 13.0 9.4
493.3 627.0
Selling, general and
administrative expense 212.5 257.7
Interest expense 0.3 ---
Other (income) (2.6) (4.9)
Operating income from homebuilding 283.1 374.2
Financial services:
Revenues 40.9 46.0
Selling, general and
administrative expense 25.5 32.7
Interest expense 1.2 2.4
Other (income) (4.5) (6.7)
Operating income from financial
services 18.7 17.6
Income before income taxes 301.8 391.8
Provision for income taxes 116.2 150.8
Net income $185.6 $241.0
Amounts per share - Basic:
Net Income $0.80 $1.03
Weighted average number of shares 232.3 233.5
Amounts per share - Diluted:
Net Income $0.78 $1.01
Weighted average number of shares 236.7 237.8
Other Consolidated Financial Data
Interest amortized to home and
land/lot cost of sales $52.7 $42.9
Depreciation and amortization $11.5 $14.0
Interest incurred $56.2 $60.9
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
As of
December 31, 2004
($'s in millions)
ASSETS
Homebuilding:
Cash and cash equivalents $313.1
Inventories
Finished homes and construction in progress 3,142.1
Residential lots - developed and under development 4,110.7
Land held for development 6.3
Consolidated land inventory not owned 234.2
7,493.3
Property and equipment (net) 92.2
Other assets 612.8
Excess of cost over net assets acquired (net) 578.9
9,090.3
Financial services:
Cash and cash equivalents 43.9
Mortgage loans held for sale 533.6
Other assets 30.9
608.4
$9,698.7
LIABILITIES
Homebuilding:
Accounts payable $406.1
Accrued and other liabilities 917.5
Liabilities associated with consolidated land
inventory not owned 37.3
Notes payable 3,526.3
4,887.2
Financial services:
Accounts payable and other liabilities 13.2
Notes payable 400.5
413.7
5,300.9
Minority interests 207.7
STOCKHOLDERS' EQUITY
Common stock 2.4
Additional capital 1,607.1
Retained earnings 2,639.5
Treasury stock (at cost) (58.9)
4,190.1
$9,698.7
D.R. HORTON, INC.
($'s in millions)
NET SALES ORDERS
Three Months Ended December 31,
2003 2004
Units $'s Units $'s
Mid-Atlantic 715 $166.7 1,037 $276.9
Midwest 411 125.2 429 124.8
Southeast 1,173 251.6 1,759 410.6
Southwest 3,280 554.8 3,938 738.8
West 2,655 935.4 2,738 1,104.6
8,234 $2,033.7 9,901 $2,655.7
HOMES CLOSED
Three Months Ended December 31,
2003 2004
Units $'s Units $'s
Mid-Atlantic 842 $181.5 833 $208.6
Midwest 444 119.3 419 111.5
Southeast 1,121 217.4 1,394 306.2
Southwest 3,941 641.5 4,104 705.0
West 2,894 974.9 2,930 1,117.8
9,242 $2,134.6 9,680 $2,449.1
SALES CONTRACT BACKLOG
As of December 31,
2003 2004
Units $'s Units $'s
Mid-Atlantic 1,475 $356.1 1,944 $560.5
Midwest 948 284.8 871 283.1
Southeast 1,875 398.3 3,352 802.9
Southwest 6,015 1,034.2 6,466 1,229.1
West 4,167 1,479.1 4,772 1,899.6
14,480 $3,552.5 17,405 $4,775.2
SOURCE D.R. Horton, Inc.
01/20/2005
CONTACT: Stacey Dwyer, EVP of D.R. Horton, Inc., +1-817-856-8200
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/Web site: http://www.DRHORTON.com
(DHI)
