Quarter Highlights
* Net income increased 66% to $185.6 million
* Diluted earnings per share increased 56% to $0.78
* Consolidated revenue increased 26% to $2.2 billion
* Sales contract backlog increased 24% to $3.6 billion (14,480 homes)
* Homes closed increased 23% to 9,242 homes
* Net sales orders increased 20% to $2.0 billion (8,234 homes)
* Homebuilding debt to total capitalization (net of cash) improved to
42.9% from 51.5% a year ago
ARLINGTON, Texas, Jan. 21 /PRNewswire-FirstCall/ -- D.R. Horton, Inc.
(NYSE: DHI) Wednesday (January 21, 2004), reported that net income for the
first fiscal quarter ended December 31, 2003 increased 66% to $185.6 million
($0.78 per diluted share), compared to $111.8 million ($0.50 per diluted
share) for the quarter ended December 31, 2002. All outstanding shares and
per share amounts reflect the Company's 3 for 2 stock split, which became
effective on January 12, 2004. First quarter consolidated revenue increased
26% to $2.2 billion from $1.7 billion in the year ago quarter. Homes closed
for the first quarter increased 23% to 9,242 homes from 7,514 homes a year
ago.
The Company reported a record December 31, 2003 sales contract backlog of
$3.6 billion (14,480 homes), an increase of 24% from $2.9 billion
(12,435 homes) a year ago. The Company previously reported that net sales
orders for the quarter increased 20% to $2.0 billion (8,234 homes) from
$1.7 billion (7,252 homes) for the same quarter last year.
The Company expects diluted earnings per share for the quarter ended
March 31, 2004 to be in the range of $0.65 to $0.70 (assuming approximately
237 million diluted shares). The Company expects diluted earnings per share
for fiscal year 2004 to be in the range of $3.15 to $3.25 (assuming
approximately 237 million diluted shares). This range represents a 15% to 19%
increase in earnings per share over the $2.73 reported in fiscal year 2003,
and is based on projected revenues of approximately $9.6 to $9.8 billion
(approximately 41,000 to 42,000 homes closed).
D.R. Horton's earnings release conference call will be Thursday,
January 22, 2004 at 10:00 a.m. EST. The dial-in number is 800-374-9096, and
the call will also be webcast from 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 $3.6 billion backlog, provide a
solid foundation for achieving our 27th consecutive year of record revenues
and earnings in fiscal year 2004."
Founded in 1978, D.R. Horton, Inc. is engaged in the construction and sale
of high quality homes designed principally for the entry-level and first time
move-up markets. D.R. Horton currently builds and sells homes in 20 states
and 47 markets, with a geographic presence in the Midwest, Mid-Atlantic,
Southeast, Southwest and Western regions of the United States. The Company
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 press release relate to the Company's expectation
of earnings per share for the quarter ending March 31, 2004 to be in the range
of $0.65 to $0.70, the Company's expectation of earnings per share for the
2004 fiscal year to be in the range of $3.15 to $3.25, which is based on
projected revenues of approximately $9.6 to $9.8 billion (based on projected
41,000 to 42,000 homes closed), and the belief that the Company's double-digit
sales momentum combined with its record $3.6 billion backlog provide a solid
foundation for achieving the Company's 27th consecutive year of record
revenues and earnings in fiscal year 2004. 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; governmental regulations and
environmental matters; changes in income tax laws affecting mortgage interest
deductibility; the Company's substantial leverage; 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.
www.DRHORTON.com
D.R. HORTON, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended
December 31,
2002 2003
(In millions, except per share amounts)
Homebuilding:
Revenues
Home sales $1,666.4 $2,134.6
Land/lot sales 40.3 29.0
1,706.7 2,163.6
Cost of sales
Home sales 1,333.7 1,654.3
Land/lot sales 34.8 16.0
1,368.5 1,670.3
Gross profit
Home sales 332.7 480.3
Land/lot sales 5.5 13.0
338.2 493.3
Selling, general and
administrative expense 179.2 212.5
Interest expense 0.4 0.3
Other expense (income) (0.2) (2.6)
Operating income from homebuilding 158.8 283.1
Financial services:
Revenues 38.2 40.9
Selling, general and administrative
expense 22.0 25.5
Interest expense 2.0 1.2
Other (income) (5.9) (4.5)
Operating income from financial
services 20.1 18.7
Income before income taxes 178.9 301.8
Provision for income taxes 67.1 116.2
Net income $ 111.8 $ 185.6
Amounts per share - basic:
Net income $ 0.51 $ 0.80
Weighted average number of shares 219.8 232.3
Amounts per share - diluted:
Net income $ 0.50 $ 0.78
Weighted average number of shares 222.8 236.7
Other Consolidated Financial Data
Interest amortized to home and
land/lot cost of sales $ 39.5 $ 52.7
Depreciation and amortization $ 9.0 $ 11.5
Interest incurred $ 58.8 $ 56.2
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
As of
December 31, 2003
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $ 138.2
Inventories
Finished homes and construction in progress 2,557.3
Residential lots - developed and under development 2,905.3
Land held for development 6.5
Consolidated land inventory not owned 120.5
5,589.6
Property and equipment (net) 82.9
Other assets 429.1
Excess of cost over net assets acquired (net) 578.9
6,818.7
Financial services:
Cash and cash equivalents 26.0
Mortgage loans held for sale 300.2
Other assets 24.1
350.3
$7,169.0
LIABILITIES
Homebuilding:
Accounts payable and other liabilities $1,066.1
Notes payable 2,547.7
3,613.8
Financial services:
Accounts payable and other liabilities 11.1
Notes payable 186.7
197.8
3,811.6
Minority interests 145.7
STOCKHOLDERS' EQUITY
Common stock 2.4
Additional capital 1,585.9
Unearned compensation (1.6)
Retained earnings 1,683.9
Treasury stock (at cost) (58.9)
3,211.7
$7,169.0
D.R. HORTON, INC.
($'s in millions)
NET SALES ORDERS
Three Months Ended December 31,
2002 2003
Units $'s Units $'s
Mid-Atlantic 721 $ 146.0 715 $ 166.7
Midwest 429 106.9 411 125.2
Southeast 949 169.8 1,173 251.6
Southwest 2,771 468.9 3,280 554.8
West 2,382 806.9 2,655 935.4
7,252 $1,698.5 8,234 $2,033.7
HOMES CLOSED
Three Months Ended December 31,
2002 2003
Units $'s Units $'s
Mid-Atlantic 665 $ 134.2 842 $ 181.5
Midwest 426 109.5 444 119.3
Southeast 947 157.3 1,121 217.4
Southwest 3,080 517.9 3,941 641.5
West 2,396 747.5 2,894 974.9
7,514 $1,666.4 9,242 $2,134.6
SALES CONTRACT BACKLOG
As of December 31,
2002 2003
Units $'s Units $'s
Mid-Atlantic 1,309 $ 276.6 1,475 $ 356.1
Midwest 919 235.9 948 284.8
Southeast 1,671 287.3 1,875 398.3
Southwest 4,877 838.7 6,015 1,034.2
West 3,659 1,218.8 4,167 1,479.1
12,435 $2,857.3 14,480 $3,552.5
SOURCE D.R. Horton, Inc.
