Quarter Highlights
- Merger with Schuler Homes completed
- Stockholder's equity exceeded $2.0 billion
- Sales backlog increased 28% to a record $2.7 billion
- Consolidated revenue increased 76% to $1.6 billion
- Net income increased 72% to $88.9 million
- Consensus earnings per share estimate exceeded by 23%
- Homebuilding debt to total capitalization (net of cash) improved to
55.8% from 57.8%
- Homes closed increased 53% to 6,639 homes
ARLINGTON, Texas, April 22 /PRNewswire-FirstCall/ -- D.R. Horton, Inc.
(NYSE: DHI) Monday (April 22, 2002), reported its 98th consecutive quarter of
year-over-year growth in revenues and net income. Second quarter net income
increased 72% to $88.9 million ($0.64 per share), from $51.6 million ($0.45
per share) in fiscal 2001. Second quarter consolidated revenue increased 76%
to $1.6 billion, from $0.9 billion in fiscal 2001. Homebuilding revenue for
the quarter increased 77% to $1,576.2 million (6,639 homes closed), compared
to $892.4 million (4,330 homes closed) for the same period of fiscal 2001.
For the six months ended March 31, 2002, net income increased 60% to
$162.4 million ($1.26 per share), compared to $101.4 million ($0.88 per share)
for the same period of fiscal 2001. Consolidated revenue for the six months
increased 54% to $2.8 billion, from $1.8 billion for the same period of fiscal
2001. Homebuilding revenue for the six months increased 54% to
$2,711.2 million (12,330 homes closed), compared to $1,766.0 million
(8,620 homes closed) for the same period of fiscal 2001.
As previously reported, net sales orders for the second quarter
established an all-time quarterly record of $1.8 billion (8,617 homes), an
increase of 35% compared to $1.4 billion (6,712 homes) for the same quarter of
fiscal 2001. Net sales orders for the first six months of fiscal 2002
increased 27% to $2.9 billion (13,761 homes), compared to $2.3 billion
(10,941 homes) for the same period of fiscal 2001. The Company's backlog of
homes under contract at March 31, 2002 established another all-time record,
totaling $2.7 billion (12,398 homes), up 28% from $2.1 billion (9,709 homes)
at March 31, 2001.
The Company is issuing earnings per share guidance for the fiscal year
ended September 30, 2002 in the range of $2.75 to $2.80. The balance of our
fiscal year 2002 earnings will be realized approximately 40% in our third
quarter and 60% in our fourth quarter.
The Company will host a conference call this morning at 11:00 a.m. EDT.
The dial-in number is 800-374-9096. The call will also be webcast from
www.drhorton.com on the "Investor Relations" page.
Donald R. Horton, Chairman of the Board, said, "It has been an exciting
quarter for the Company. We completed our merger with Schuler Homes, achieved
our 98th consecutive quarter of growth in revenues and earnings and declared a
3-for-2 stock split. The Company continues to experience strong sales demand
as evidenced by the second quarter's 35% sales increase, which contributed to
a record backlog of $2.7 billion. Our record earnings for the first half of
this fiscal year, combined with our record backlog, ensure that fiscal 2002
will be our 25th consecutive year of growth and profitability, and position
the Company for a prosperous fiscal year 2003."
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 under the
D.R. Horton, Arappco, Cambridge, Continental, Dietz-Crane, Dobson, Emerald,
Mareli, Melody, Milburn, Regency, Schuler, SGS Communities, Stafford, Torrey,
Trimark, and Western Pacific names in 21 states and 42 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. 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; 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.
D.R. HORTON, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended Six months ended
March 31, March 31,
2001 2002 2001 2002
(In millions, except per share amounts)
Homebuilding:
Revenues
Home sales $853.6 $1,534.4 $1,709.7 $2,660.1
Land/lot sales 38.8 41.8 56.3 51.1
892.4 1,576.2 1,766.0 2,711.2
Cost of sales
Home sales 682.8 1,258.8 1,372.7 2,157.8
Land/lot sales 30.6 36.2 44.1 44.1
713.4 1,295.0 1,416.8 2,201.9
Gross profit
Home sales 170.8 275.6 337.0 502.3
Land/lot sales 8.2 5.6 12.2 7.0
179.0 281.2 349.2 509.3
Selling, general and
administrative expense 94.1 149.5 186.0 267.9
Interest expense 1.6 2.6 4.5 3.8
Other expense (income) 5.7 (2.4) 9.0 0.1
Operating income from homebuilding 77.6 131.5 149.7 237.5
Financial services:
Revenues 14.4 23.9 28.5 48.8
Selling, general and
administrative expense 9.8 14.9 19.9 30.0
Interest expense 0.9 1.0 2.0 2.3
Other (income) (1.2) (2.8) (2.6) (5.8)
Operating income from financial
services 4.9 10.8 9.2 22.3
Income before income taxes 82.5 142.3 158.9 259.8
Provision for income taxes 30.9 53.4 59.6 97.4
Income before cumulative effect of
change in accounting principle $51.6 $88.9 $99.3 $162.4
Cumulative effect of change in
accounting principle, net of income
taxes --- --- 2.1 ---
Net income $51.6 $88.9 $101.4 $162.4
Amounts per share - basic:
Income before cumulative effect of
change in accounting principle $0.46 $0.69 $0.88 $1.33
Cumulative effect of change in
accounting principle, net of
income taxes --- --- 0.02 ---
Net income $0.46 $0.69 $0.90 $1.33
Amounts per share - diluted:
Income before cumulative effect of
change in accounting principle $0.45 $0.64 $0.86 $1.26
Cumulative effect of change in
accounting principle, net of
income taxes --- --- 0.02 ---
Net income per share $0.45 $0.64 $0.88 $1.26
Weighted average number of shares:
Basic 113.2 128.9 112.8 122.1
Diluted 115.1 141.5 114.6 129.4
Other Homebuilding Financial Data
Interest in home and land cost of
sales $18.5 $29.4 $36.7 $51.7
Depreciation and amortization $5.7 $5.0 $11.4 $10.0
Interest Incurred $31.2 $46.5 $60.7 $83.2
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
March 31, 2002
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $176.3
Inventories 4,201.1
Property and equipment (net) 68.5
Other assets 359.1
Excess of cost over net assets
acquired (net) 564.0
5,369.0
Financial services:
Cash and cash equivalents 13.5
Mortgage loans held for sale 202.3
Other assets 12.1
227.9
$5,596.9
LIABILITIES
Homebuilding:
Accounts payable and other liabilities $629.9
Notes payable 2,748.2
3,378.1
Financial services:
Accounts payable and other liabilities 9.7
Notes payable 148.2
157.9
3,536.0
Minority interests 21.9
STOCKHOLDERS' EQUITY
Common stock 1.0
Additional capital 1,346.7
Unearned compensation (7.5)
Retained earnings 698.8
2,039.0
$5,596.9
D.R. HORTON, INC.
($'s in millions)
NET SALES CONTRACTS
Three Months Ended March 31, Six Months Ended March 31,
2001 2002 2001 2002
Units $'s Units $'s Units $'s Units $'s
Mid-Atlantic 860 $184.3 883 $182.7 1,410 $312.7 1,511 $310.7
Midwest 595 155.6 463 117.3 921 235.6 851 214.3
Southeast 850 154.0 969 158.4 1,398 252.0 1,704 276.7
Southwest 2,795 453.4 3,685 613.9 4,474 731.1 6,017 993.2
West 1,612 408.6 2,617 761.1 2,738 724.7 3,678 1,060.0
6,712 $1,355.9 8,617 $1,833.4 10,941 $2,256.1 13,761 $2,854.9
HOMES CLOSED
Three Months Ended March 31, Six Months Ended March 31,
2001 2002
Units $'s Units $'s Units $'s Units $'s
Mid-Atlantic 630 $139.5 633 $138.6 1,225 $273.5 1,228 $263.7
Midwest 386 89.7 388 95.4 874 208.4 851 214.1
Southeast 593 104.5 790 135.7 1,158 204.7 1,678 290.6
Southwest 1,886 314.3 2,338 403.9 3,678 602.8 4,909 836.5
West 835 205.6 2,490 760.8 1,685 420.3 3,664 1,055.2
4,330 $853.6 6,639 $1,534.4 8,620 $1,709.7 12,330 $2,660.1
SALES CONTRACT BACKLOG
As of March 31,
2001 2002
Units $'s Units $'s
Mid-Atlantic 1,008 $246.8 1,105 $237.4
Midwest 947 252.7 918 263.0
Southeast 1,227 225.0 1,490 239.6
Southwest 3,985 679.8 5,410 910.2
West 2,542 679.0 3,475 1,013.5
9,709 $2,083.3 12,398 $2,663.7
WEBSITE ADDRESS: www.DRHORTON.com
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SOURCE D.R. Horton, Inc.
Web site: http: //www.drhorton.com
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CONTACT: Sam Fuller, CFO, or Stacey Dwyer, EVP, both of D.R. Horton, Inc., +1-817-856-8200
