Quarter Highlights
* Net income increased 48% to an all-time Company record $371.7 million
* Diluted earnings per share increased 46% to $1.17 per share
* Sales order backlog increased 36% to a record $7.0 billion
(23,916 homes)
* Net sales orders increased 29% to $4.1 billion (14,980 homes)
* Consolidated revenue increased 21% to $3.4 billion
* Homes closed increased 11% to 12,269 homes
* Homebuilding debt to total capitalization (net of cash) improved
120 basis points to 42.4%
* D.R. Horton was added to the Standard & Poor's 500 Index
FORT WORTH, Texas, July 21 /PRNewswire-FirstCall/ -- D.R. Horton, Inc.
(NYSE: DHI), the largest homebuilder in the United States, Thursday
(July 21, 2005), reported that net income for the quarter ended June 30, 2005
increased 48% to $371.7 million ($1.17 per diluted share), from $251.3 million
($0.80 per diluted share) for the same quarter in fiscal year 2004. Third
quarter consolidated revenue increased 21% to $3.4 billion, from $2.8 billion
in the third quarter of fiscal year 2004. Homes closed in the third quarter
increased 11% to 12,269 homes from 11,050 homes in the year ago quarter.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040722/DHILOGO )
For the nine months ended June 30, 2005, net income increased 45% to
$906.7 million ($2.85 per diluted share), compared to $625.5 million ($1.98
per diluted share) for the same period of fiscal year 2004. Consolidated
revenue for the nine months increased 20% to $8.8 billion, from $7.3 billion
for the same period of fiscal year 2004. Homes closed in the nine-month
period increased 8% to 32,550 homes from 30,115 homes for the same period of
fiscal year 2004.
As previously reported, net sales orders for the third quarter ended
June 30, 2005 were the highest quarterly sales in the Company's history,
increasing 29% to $4.1 billion (14,980 homes), compared to $3.2 billion
(12,444 homes) for the same quarter of fiscal year 2004. Net sales orders for
the first nine months of fiscal 2005 increased 27% to $10.9 billion
(39,282 homes), compared to $8.6 billion (34,158 homes) for the same period of
fiscal 2004. The Company's backlog of homes under contract at June 30, 2005
totaled a record $7.0 billion (23,916 homes), up 36% from $5.2 billion
(19,531 homes) at June 30, 2004.
The Company is increasing its earnings per share guidance for the fiscal
year ending September 30, 2005 to be in the range of $4.35 to $4.40 (based on
approximately 318 million diluted shares). This represents a 41% to 42%
increase over the $3.09 per diluted share reported in fiscal year 2004. The
earnings guidance is based on approximately 50,000 homes closed and more than
$13.0 billion in consolidated revenue.
The Company expects diluted earnings per share for the quarter ending
December 31, 2005 to be in the range of $0.90 to $0.95 (based on approximately
319.5 million diluted shares), an 18% to 25% increase over the $0.76 reported
in the first quarter of fiscal year 2005. For fiscal year 2006, the Company
is issuing preliminary guidance of $5.00 to $5.05 based on approximately
58,000 homes closed and approximately $15.0 billion in consolidated revenue.
The Company will host a conference call Thursday, 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, "It has been another
exciting quarter for D.R. Horton, America's Builder, and its employees. Our
track record and continued strong performance have been acknowledged by our
recent inclusion in the S&P 500 Index. In addition, the Company set all-time
quarterly records for net income, gross profit margin, sales units, sales
dollars and sales order backlog. The Company also set an industry record for
quarterly sales with 14,980 homes sold, as each of our regions reported
double-digit increases in both sales dollars and units.
"Our record backlog and continued sales momentum ensure that fiscal year
2005 will be our 28th consecutive year of increased growth and profitability,
and position the Company for a strong start to another record year in fiscal
2006."
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 71 markets in 23 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 (a) fiscal year 2005 to be in the range of
$4.35 to $4.40 per diluted share based on 50,000 homes closed and more than
$13.0 billion in consolidated revenues, (b) the quarter ending
December 31, 2005 to be in the range of $0.90 to $0.95 per diluted share and
(c) fiscal year 2006 to be in the range of $5.00 to $5.05 per diluted share
based on approximately 58,000 homes closed and approximately $15.0 billion in
consolidated revenue; and (ii) the Company's assurances, based on its record
backlog and continued sales momentum, (a) that fiscal year 2005 will be
another consecutive year of increased growth and profitability and (b) that
the Company is positioned for a strong start to another record year in fiscal
year 2006. 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;
competitive conditions within the industry; warranty and product liability
claims; the Company's substantial debt; the availability of capital to the
Company on favorable terms; and the Company's ability to effect its growth
strategies successfully. 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.
WEBSITE ADDRESS: http://www.DRHORTON.com
D.R. HORTON, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Nine Months Ended
June 30, June 30,
2004 2005 2004 2005
(In millions, except per share amounts)
Homebuilding:
Revenues:
Home sales $2,695.5 $3,277.1 $7,080.7 $8,432.9
Land/lot sales 46.2 32.4 117.8 177.5
2,741.7 3,309.5 7,198.5 8,610.4
Cost of sales:
Home sales 2,086.8 2,413.7 5,490.0 6,279.8
Land/lot sales 29.1 17.0 72.4 105.4
2,115.9 2,430.7 5,562.4 6,385.2
Gross profit:
Home sales 608.7 863.4 1,590.7 2,153.1
Land/lot sales 17.1 15.4 45.4 72.1
625.8 878.8 1,636.1 2,225.2
Selling, general and
administrative expense 244.3 302.0 679.5 826.7
Interest expense --- --- 3.3 ---
Other (income) (7.4) (0.5) (7.1) (11.4)
Operating income from
Homebuilding 388.9 577.3 960.4 1,409.9
Financial Services:
Revenues 48.7 60.7 131.7 156.5
General and
administrative expense 32.2 38.5 83.8 105.1
Interest expense 1.6 4.1 4.0 9.1
Other (income) (4.8) (9.0) (12.7) (22.0)
Operating income from
Financial Services 19.7 27.1 56.6 64.3
Income before income
taxes $408.6 $604.4 $1,017.0 $1,474.2
Provision for income
taxes 157.3 232.7 391.5 567.5
Net income $251.3 $371.7 $625.5 $906.7
Basic:
Net income per share $0.81 $1.19 $2.02 $2.91
Weighted average number
of common shares* 310.7 312.4 310.3 312.0
Diluted:
Net income per share $0.80 $1.17 $1.98 $2.85
Weighted average number
of common shares* 316.1 318.3 316.0 317.8
Other Consolidated
Financial Data:
Interest amortized to
home and land/lot
cost of sales $65.4 $59.7 $173.1 $158.6
Depreciation and
amortization $12.5 $12.4 $34.4 $39.2
Interest incurred $61.3 $73.0 $181.7 $213.9
* adjusted for the four-for-three stock split of March 2005
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
As of June 30,
2005
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $109.8
Inventories:
Construction in progress and finished homes 3,945.3
Residential lots - developed and under
development 4,485.6
Land held for development 6.3
Consolidated land inventory not owned 185.2
8,622.4
Property and equipment (net) 97.8
Earnest money deposits and other assets 706.7
Goodwill 578.9
10,115.6
Financial Services:
Cash and cash equivalents 62.0
Mortgage loans held for sale 828.7
Other assets 38.2
928.9
$11,044.5
LIABILITIES
Homebuilding:
Accounts payable $722.6
Accrued expenses and other liabilities 929.3
Notes payable 3,654.7
5,306.6
Financial Services:
Accounts payable and other liabilities 16.8
Notes payable 708.4
725.2
6,031.8
Minority interests 192.4
STOCKHOLDERS' EQUITY
Common stock 3.2
Additional capital 1,620.3
Retained earnings 3,255.7
Treasury stock (at cost) (58.9)
4,820.3
$11,044.5
D.R. HORTON, INC.
($'s in millions)
NET SALES ORDERS
Three Months Ended June 30,
2004 2005
Units $'s Units $'s
Mid-Atlantic 1,147 $296.7 1,453 $381.6
Midwest 586 162.2 952 254.5
Southeast 1,739 394.1 2,346 577.3
Southwest 4,962 839.2 5,807 1,158.5
West 4,010 1,524.1 4,422 1,762.9
12,444 $3,216.3 14,980 $4,134.8
Nine Months Ended June 30,
2004 2005
Units $'s Units $'s
Mid-Atlantic 2,896 $740.6 3,753 $1,004.7
Midwest 1,617 462.5 2,258 603.8
Southeast 4,670 1,010.7 6,079 1,485.8
Southwest 13,677 2,300.2 15,383 3,007.1
West 11,298 4,069.8 11,809 4,787.8
34,158 $8,583.8 39,282 $10,889.2
HOMES CLOSED
Three Months Ended June 30,
2004 2005
Units $'s Units $'s
Mid-Atlantic 994 $226.0 978 $253.1
Midwest 534 147.3 563 146.7
Southeast 1,360 281.9 1,942 447.9
Southwest 4,565 769.3 4,819 892.8
West 3,597 1,271.0 3,967 1,536.6
11,050 $2,695.5 12,269 $3,277.1
Nine Months Ended June 30,
2004 2005
Units $'s Units $'s
Mid-Atlantic 2,637 $588.0 2,681 $671.6
Midwest 1,421 385.8 1,418 371.2
Southeast 3,763 750.8 5,039 1,137.3
Southwest 12,938 2,140.3 13,472 2,405.5
West 9,356 3,215.8 9,940 3,847.3
30,115 $7,080.7 32,550 $8,432.9
SALES ORDER BACKLOG
As of June 30,
2004 2005
Units $'s Units $'s
Mid-Atlantic 1,861 $523.5 2,812 $825.3
Midwest 1,177 355.5 1,701 502.3
Southeast 2,730 624.0 4,027 1,047.0
Southwest 7,415 1,280.8 8,543 1,796.9
West 6,348 2,372.7 6,833 2,853.2
19,531 $5,156.5 23,916 $7,024.7
SOURCE D.R. Horton, Inc.
07/21/2005
CONTACT: Stacey Dwyer, EVP of D.R. Horton, Inc., +1-817-390-8200
/Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20040722/DHILOGO
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/Web site: http://www.drhorton.com
(DHI)
CO: D.R. Horton, Inc.
