Quarter Highlights
* Net income increased 62% to $251.3 million
* Earnings per diluted share increased 61% to $1.06 per diluted share
* Sales backlog increased 28% to a record $5.2 billion (19,531 homes)
* Consolidated revenue increased 26% to $2.8 billion
* Net sales orders increased 23% to $3.2 billion (12,444 homes)
* Homes closed increased 23% to 11,050 homes
* Homebuilding debt to total capitalization (net of cash) improved 230
basis points to 43.6%
ARLINGTON, Texas, July 21 /PRNewswire-FirstCall/ -- D.R. Horton, Inc.
(NYSE: DHI) Wednesday (July 21, 2004), reported that net income for the
quarter ended June 30, 2004 increased 62% to $251.3 million ($1.06 per diluted
share), from $155.6 million ($0.66 per diluted share) for the same quarter in
fiscal year 2003. Third quarter consolidated revenue increased 26% to
$2.8 billion, from $2.2 billion in the third quarter of fiscal year 2003.
Homes closed increased 23% to 11,050 homes from 9,005 in the year ago quarter.
For the nine months ended June 30, 2004, net income increased 58% to
$625.5 million ($2.64 per diluted share), compared to $395.2 million
($1.74 per diluted share) for the same period of fiscal year 2003.
Consolidated revenue for the nine months increased 25% to $7.3 billion, from
$5.9 billion for the same period of fiscal year 2003. Homes closed increased
23% to 30,115 homes from 24,407 for the same period of fiscal year 2003.
As previously reported, net sales orders for the third quarter ended June
30, 2004 increased 23% to $3.2 billion (12,444 homes), compared to
$2.6 billion (10,811 homes) for the same quarter of fiscal year 2003. Net
sales orders for the first nine months of fiscal 2004 increased 27% to a
record $8.6 billion (34,158 homes), compared to $6.8 billion (28,611 homes)
for the same period of fiscal 2003. The Company's backlog of homes under
contract at June 30, 2004 totaled a record $5.2 billion (19,531 homes), up 28%
from $4.0 billion (16,901 homes) at June 30, 2003.
The Company is increasing its earnings per share guidance for the fiscal
year ended September 30, 2004 to approximately $3.75 to $3.85 based on
237.1 million diluted shares outstanding. This represents a 37% to 41%
increase over the $2.73 per diluted share reported in fiscal year 2003. The
earnings guidance is based on approximately 43,000 to 44,000 homes closed and
$10.5 to $10.7 billion in consolidated revenue.
The Company will host a conference call Wednesday, July 21st at 10:00 a.m.
EDT. The dial-in number is 800-374-9096. The call will also be webcast from
http://www.drhorton.com on the "Investor Relations" page.
Donald R. Horton, Chairman of the Board, said, "D.R. Horton had another
quarter of exceptional net sales orders, with each of our reporting regions
producing double digit sales dollar increases. Through June 30th, the Company
has already earned $1 billion in pre-tax income and $625.5 million in net
income, approximately what we earned in all of fiscal year 2003. These
results ensure fiscal year 2004 will be our 27th consecutive year of growth
and profitability. Our continued sales momentum and $5.2 billion sales backlog
position D.R. Horton for another record year in fiscal year 2005."
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 21 states
and 51 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 release relate to our earnings per share guidance
for fiscal year 2004, continued sales momentum and our assurance of another
consecutive year of growth and profitability in fiscal year 2004, and our
expectations of another record year in fiscal year 2005 based on our record
backlog position. 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; 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 its 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 the
most recent Form 10-Q, both of which were filed with the Securities and
Exchange Commission.
D.R. Horton, Inc.
Consolidated Statements of Income
(UNAUDITED)
Three months ended Nine months ended
June 30, June 30,
2003 2004 2003 2004
(In millions, except per share amounts)
Homebuilding:
Revenues
Home sales $2,108.9 $2,695.5 $5,553.2 $7,080.7
Land/lot sales 57.9 46.2 189.0 117.8
2,166.8 2,741.7 5,742.2 7,198.5
Cost of sales
Home sales 1,676.3 2,086.8 4,429.6 5,490.0
Land/lot sales 50.5 29.1 162.1 72.4
1,726.8 2,115.9 4,591.7 5,562.4
Gross profit
Home sales 432.6 608.7 1,123.6 1,590.7
Land/lot sales 7.4 17.1 26.9 45.4
440.0 625.8 1,150.5 1,636.1
Selling, general and
administrative expense 208.0 244.3 574.4 679.5
Interest expense 1.7 - 2.1 3.3
Other expense (income) 3.4 (7.4) 3.1 (7.1)
Operating income from
homebuilding 226.9 388.9 570.9 960.4
Financial services:
Revenues 45.6 48.7 123.6 131.7
Selling, general and
administrative expense 25.3 32.2 69.6 83.8
Interest expense 1.7 1.6 5.3 4.0
Other (income) (5.4) (4.8) (16.4) (12.7)
Operating income from
financial services 24.0 19.7 65.1 56.6
Income before income taxes 250.9 408.6 636.0 1,017.0
Provision for income taxes 95.3 157.3 240.8 391.5
Net income $155.6 $251.3 $395.2 $625.5
Amounts per share - Basic:
Net income $0.71 $1.08 $1.80 $2.69
Weighted average number
of shares 219.0 233.1 219.4 232.7
Amounts per share - Diluted:
Net income $0.66 $1.06 $1.74 $2.64
Weighted average number
of shares 236.2 237.1 227.1 237.0
Other Consolidated Financial Data
Interest amortized to
home and land cost of
sales $55.5 $65.4 $144.7 $173.1
Depreciation and
amortization $11.3 $12.5 $30.0 $34.4
Interest incurred $64.1 $61.3 $184.6 $181.7
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
As of June 30,
2004
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $202.2
Inventories
Finished homes and construction
in progress 3,135.6
Residential lots - developed
and under development 3,186.4
Land held for development 6.3
Consolidated land inventory not
owned 54.9
6,383.2
Property and equipment (net) 88.9
Other assets 470.2
Excess of cost over net assets
acquired (net) 578.9
7,723.4
Financial services:
Cash and cash equivalents 37.9
Mortgage loans held for sale 413.6
Other assets 27.5
479.0
$8,202.4
LIABILITIES
Homebuilding:
Accounts payable and other
liabilities $1,176.7
Notes payable 3,005.4
4,182.1
Financial services:
Accounts payable and other
liabilities 13.4
Notes payable 313.4
326.8
4,508.9
Minority interests 68.5
STOCKHOLDERS' EQUITY
Common stock 2.4
Additional capital 1,595.7
Unearned compensation (0.5)
Retained earnings 2,086.3
Treasury stock (at cost) (58.9)
3,625.0
$8,202.4
D.R. HORTON, INC.
($'s in millions)
NET SALES ORDERS
Three Months Ended June 30,
2003 2004
Units $'s Units $'s
Mid-Atlantic 952 $216.1 1,147 $296.7
Midwest 503 138.0 586 162.2
Southeast 1,213 237.7 1,739 394.1
Southwest 4,317 715.5 4,962 839.2
West 3,826 1,311.1 4,010 1,524.1
10,811 $2,618.4 12,444 $3,216.3
Nine Months Ended June 30,
2003 2004
Units $'s Units $'s
Mid-Atlantic 2,666 $577.1 2,896 $740.6
Midwest 1,454 385.6 1,617 462.5
Southeast 3,314 623.0 4,670 1,010.7
Southwest 11,561 1,924.6 13,677 2,300.2
West 9,616 3,246.0 11,298 4,069.8
28,611 $6,756.3 34,158 $8,583.8
HOMES CLOSED
Three Months Ended June 30,
2003 2004
Units $'s Units $'s
Mid-Atlantic 833 $175.0 994 $226.0
Midwest 468 118.2 534 147.3
Southeast 1,099 194.8 1,360 281.9
Southwest 3,581 607.7 4,565 769.3
West 3,024 1,013.2 3,597 1,271.0
9,005 $2,108.9 11,050 $2,695.5
Nine Months Ended June 30,
2003 2004
Units $'s Units $'s
Mid-Atlantic 2,241 $463.7 2,637 $588.0
Midwest 1,335 335.3 1,421 385.8
Southeast 3,025 519.8 3,763 750.8
Southwest 9,938 1,677.9 12,938 2,140.3
West 7,868 2,556.5 9,356 3,215.8
24,407 $5,553.2 30,115 $7,080.7
SALES CONTRACT BACKLOG
As of June 30
2003 2004
Units $'s Units $'s
Mid-Atlantic 1,678 $378.3 1,861 $523.5
Midwest 1,035 288.9 1,177 355.5
Southeast 1,958 377.9 2,730 624.0
Southwest 6,809 1,134.4 7,415 1,280.8
West 5,421 1,848.9 6,348 2,372.7
16,901 $4,028.4 19,531 $5,156.5
SOURCE D.R. Horton, Inc.
