FORT WORTH, Texas--(BUSINESS WIRE)--July 20, 2006--D.R. Horton,
Inc., America's Builder (NYSE:DHI), the largest homebuilder in the
United States, Thursday (July 20, 2006), reported net income for the
quarter ended June 30, 2006 of $292.8 million ($0.93 per diluted
share), compared to $371.7 million ($1.17 per diluted share) for the
same quarter of fiscal year 2005. Earnings for the quarter ended June
30, 2006 reflect a pre-tax charge of $57.2 million ($0.11 per diluted
share) to write off earnest money and pre-acquisition costs related to
land option contracts. Consolidated revenue for the quarter increased
9% to $3.7 billion, from $3.4 billion in the same quarter of fiscal
year 2005. Homes closed in the quarter increased 9% to 13,377 homes
from 12,269 homes in the year ago quarter.
For the nine months ended June 30, 2006, net income increased 5%
to $955.6 million ($3.02 per diluted share), compared to $906.7
million ($2.85 per diluted share) for the same period of fiscal year
2005. Consolidated revenue for the nine months increased 16% to $10.2
billion, from $8.8 billion for the same period of fiscal year 2005.
Homes closed in the nine-month period increased 10% to 35,838 homes
from 32,550 homes for the same period of fiscal year 2005.
As previously reported, net sales orders for the quarter ended
June 30, 2006 were 14,316 homes ($3.8 billion), compared to 14,980
homes ($4.1 billion) for the same quarter of fiscal year 2005. Net
sales orders for the first nine months of fiscal 2006 increased 6% to
41,550 homes ($11.4 billion), compared to 39,282 homes ($10.9 billion)
for the same period of fiscal 2005. The Company's backlog of homes
under contract at June 30, 2006 increased 4% to 24,956 homes ($7.4
billion), compared to 23,916 homes ($7.0 billion) at June 30, 2005.
Donald R. Horton, Chairman of the Board, said, "Our people have
worked very hard to achieve these results during a time when selling
conditions are very difficult in the homebuilding industry. We have
experienced a changing home sales environment since the beginning of
the calendar year, which became more evident during our third quarter.
As we indicated when we reported our net sales orders last week, the
current home sales environment is characterized by an increase in both
existing and new homes available for sale, higher than normal
cancellation rates and an increase in the use of sales incentives in
many of our markets. Due to these factors, last week we reduced our
guidance for fiscal year 2006 to $3.65 per diluted share or greater
(based on approximately 317 million diluted shares) on approximately
50,000 homes closed."
The Company will host a conference call Thursday, July 20th at
10:00 a.m. ET. The dial-in number is 800-374-9096. 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 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 83 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 include our expectation of fiscal year 2006
diluted earnings per share of $3.65 or greater (based on approximately
317 million diluted shares) on approximately 50,000 homes closed.
Factors that may cause the actual results to be materially different
from the future results expressed by the forward-looking statements
include, but are not limited to: changes in general economic, real
estate construction and other business conditions; changes in interest
rates, the availability of mortgage financing or increases in the
costs of owning a home; governmental regulations and environmental
matters; the Company's substantial debt; competitive conditions within
the industry; the availability of capital to the Company on favorable
terms; the Company's ability to successfully effect its growth
strategies; and warranty and product liability claims. Additional
information about issues that could lead to material changes in
performance is contained in D.R. Horton's annual report on Form 10-K
and most recent quarterly reports on Form 10-Q, which are filed with
the Securities and Exchange Commission.
WEBSITE ADDRESS: www.DRHORTON.com
D.R. HORTON, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Nine Months Ended
June 30, June 30,
--------------------- ---------------------
2005 2006 2005 2006
---------- ---------- ---------- ----------
($ in millions, except per share amounts)
Homebuilding:
Revenues:
Home sales $3,277.1 $3,581.4 $8,432.9 $9,842.7
Land/lot sales 32.4 12.2 177.5 119.2
--------- --------- --------- ---------
3,309.5 3,593.6 8,610.4 9,961.9
--------- --------- --------- ---------
Cost of sales:
Home sales 2,413.7 2,788.7 6,279.8 7,400.6
Land/lot sales 17.0 6.7 105.4 46.2
--------- --------- --------- ---------
2,430.7 2,795.4 6,385.2 7,446.8
--------- --------- --------- ---------
Gross profit:
Home sales 863.4 792.7 2,153.1 2,442.1
Land/lot sales 15.4 5.5 72.1 73.0
--------- --------- --------- ---------
878.8 798.2 2,225.2 2,515.1
--------- --------- --------- ---------
Selling, general and
administrative expense 302.0 356.4 826.7 1,046.9
Interest expense -- -- -- 15.0
Other (income) (0.5) (2.9) (11.4) (13.4)
--------- --------- --------- ---------
Operating income from
Homebuilding 577.3 444.7 1,409.9 1,466.6
--------- --------- --------- ---------
Financial Services:
Revenues 60.7 74.2 156.5 206.6
General and
administrative expense 38.5 50.8 105.1 147.6
Interest expense 4.1 8.7 9.1 24.7
Other (income) (9.0) (12.8) (22.0) (40.4)
--------- --------- --------- ---------
Operating income from
Financial Services 27.1 27.5 64.3 74.7
--------- --------- --------- ---------
Income before income taxes $604.4 $472.2 $1,474.2 $1,541.3
Provision for income taxes 232.7 179.4 567.5 585.7
--------- --------- --------- ---------
Net income $371.7 $292.8 $906.7 $955.6
========= ========= ========= =========
Basic:
Net income per share $1.19 $0.94 $2.91 $3.06
========= ========= ========= =========
Weighted average number
of common shares 312.4 312.8 312.0 312.7
========= ========= ========= =========
Diluted:
Net income per share $1.17 $0.93 $2.85 $3.02
========= ========= ========= =========
Weighted average number
of common shares 318.3 315.8 317.8 316.7
========= ========= ========= =========
Other Consolidated
Financial Data:
Interest amortized to
home and land/lot cost
of sales $59.7 $60.1 $158.6 $164.5
========= ========= ========= =========
Depreciation and
amortization $12.4 $14.3 $39.2 $40.7
========= ========= ========= =========
Interest incurred $73.0 $94.1 $213.9 $275.7
========= ========= ========= =========
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
As of June 30,
2006
---------------
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $100.3
Inventories:
Construction in progress and finished homes 5,298.6
Residential land and lots -- developed and under
development 6,462.1
Land held for development 102.3
Consolidated land inventory not owned 142.4
--------------
12,005.4
Property and equipment (net) 130.7
Earnest money deposits and other assets 760.8
Goodwill 578.9
--------------
13,576.1
--------------
Financial Services:
Cash and cash equivalents 59.8
Mortgage loans held for sale 846.1
Other assets 77.7
--------------
983.6
--------------
$14,559.7
==============
LIABILITIES
Homebuilding:
Accounts payable $957.4
Accrued expenses and other liabilities 1,004.2
Notes payable 5,489.7
--------------
7,451.3
--------------
Financial Services:
Accounts payable and other liabilities 24.4
Notes payable 724.3
--------------
748.7
--------------
8,200.0
--------------
Minority interests 145.6
--------------
STOCKHOLDERS' EQUITY
Common stock 3.2
Additional capital 1,650.3
Retained earnings 4,656.3
Treasury stock (at cost) (95.7)
--------------
6,214.1
--------------
$14,559.7
==============
D.R. HORTON, INC.
($'s in millions)
NET SALES ORDERS
Three Months Ended June 30,
-------------------------------------------------
2005 2006
------------------------- -----------------------
Homes $'s Homes $'s
------------ ------------ ---------- ------------
Mid-Atlantic 1,453 $381.6 1,355 $330.4
Midwest 952 254.5 585 171.0
Southeast 2,346 577.3 2,186 530.4
Southwest 5,807 1,158.5 6,511 1,340.0
West 4,422 1,762.9 3,679 1,461.2
------------ ------------ ---------- ------------
14,980 $4,134.8 14,316 $3,833.0
============ ============ ========== ============
NET SALES ORDERS
Nine Months Ended June 30,
-------------------------------------------------
2005 2006
------------------------- -----------------------
Homes $'s Homes $'s
------------ ------------ ---------- ------------
Mid-Atlantic 3,753 $1,004.7 3,839 $956.9
Midwest 2,258 603.8 1,736 496.4
Southeast 6,079 1,485.8 6,455 1,595.8
Southwest 15,383 3,007.1 17,652 3,635.0
West 11,809 4,787.8 11,868 4,678.9
------------ ------------ ---------- ------------
39,282 $10,889.2 41,550 $11,363.0
============ ============ ========== ============
HOMES CLOSED
Three Months Ended June 30,
-------------------------------------------------
2005 2006
------------------------- -----------------------
Homes $'s Homes $'s
------------ ------------ ---------- ------------
Mid-Atlantic 978 $253.1 1,187 $319.4
Midwest 563 146.7 801 236.0
Southeast 1,942 447.9 2,212 529.3
Southwest 4,819 892.8 5,440 1,071.4
West 3,967 1,536.6 3,737 1,425.3
------------ ------------ ---------- ------------
12,269 $3,277.1 13,377 $3,581.4
============ ============ ========== ============
Nine Months Ended June 30,
-------------------------------------------------
2005 2006
------------------------- -----------------------
Homes $'s Homes $'s
------------ ------------ ---------- ------------
Mid-Atlantic 2,681 $671.6 3,309 $877.9
Midwest 1,418 371.2 2,068 586.1
Southeast 5,039 1,137.3 5,907 1,463.3
Southwest 13,472 2,405.5 13,810 2,728.2
West 9,940 3,847.3 10,744 4,187.2
------------ ------------ ---------- ------------
32,550 $8,432.9 35,838 $9,842.7
============ ============ ========== ============
SALES ORDER BACKLOG
As of June 30,
-----------------------------------
2005 2006
------- --------- ------- ---------
Homes $'s Homes $'s
------- --------- ------- ---------
Mid-Atlantic 2,812 $825.3 3,046 $826.7
Midwest 1,701 502.3 1,029 312.6
Southeast 4,027 1,047.0 3,684 1,040.8
Southwest 8,543 1,796.9 11,115 2,571.8
West 6,833 2,853.2 6,082 2,603.6
------- --------- ------- ---------
23,916 $7,024.7 24,956 $7,355.5
======= ========= ======= =========
CONTACT:
D.R. Horton, Inc., Fort Worth
Stacey Dwyer, 817-390-8200
SOURCE:
D.R. Horton, Inc.
