Quarter Highlights
- Net income increased 54% to $105.9 million
- Homes closed increased 44% to 7,877 homes
- Consolidated revenue increased 61% to $1.8 billion
- Sales backlog increased 30% to a record $2.9 billion
- Earnings per share increased 12% to $0.67 per share
- Stockholders' equity exceeded $2.1 billion
- Homebuilding debt to total capitalization (net of cash) improved to
55.9% from 57.9%
ARLINGTON, Texas, July 22 /PRNewswire-FirstCall/ -- D.R. Horton, Inc.
(NYSE: DHI) Monday (July 22, 2002), reported that third quarter net income
increased 54% to $105.9 million ($0.67 per share), from $68.8 million
($0.60 per share) in fiscal 2001. Third quarter consolidated revenue
increased 61% to $1.8 billion, from $1.1 billion in fiscal 2001. Homebuilding
revenue for the quarter increased 61% to $1,779.6 million (7,877 homes
closed), compared to $1,102.0 million (5,467 homes closed) for the same period
of fiscal 2001.
For the nine months ended June 30, 2002, net income increased 58% to
$268.3 million ($1.94 per share), compared to $170.2 million ($1.48 per share)
for the same period of fiscal 2001. Consolidated revenue for the nine months
increased 57% to $4.6 billion, from $2.9 billion for the same period of fiscal
2001. Homebuilding revenue for the nine months increased 57% to $4.5 billion
(20,207 homes closed), compared to $2.9 billion (14,087 homes closed) for the
same period of fiscal 2001.
As previously reported, net sales orders for the third quarter established
an all-time quarterly record of $2.0 billion (9,065 homes), an increase of 68%
compared to $1.2 billion (6,014 homes) for the same quarter of fiscal 2001.
Net sales orders for the first nine months of fiscal 2002 increased 41% to
$4.9 billion (22,826 homes), compared to $3.5 billion (16,955 homes) for the
same period of fiscal 2001. The Company's backlog of homes under contract at
June 30, 2002 totaled $2.9 billion (13,586 homes), up 30% from $2.3 billion
(10,608 homes) at June 30, 2001.
The Company expects earnings per share for the fiscal year ended
September 30, 2002 of approximately $2.77 to $2.82.
The Company will host a conference call this morning at 10:00 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 another
exciting quarter for the Company. We continue to experience strong sales
demand as evidenced by the third quarter's 68% sales increase, which
contributed to a record backlog of $2.9 billion. The Company's continued
sales momentum combined with our record backlog, ensure that fiscal 2002 will
be our 25th consecutive year of growth and profitability, and position us for
another record year in 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,
Melody, Milburn, Regency, Schuler, SGS Communities, Stafford, Torrey, Trimark,
and Western Pacific names in 20 states and 44 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 Nine months ended
June 30, June 30,
2001 2002 2001 2002
(In millions, except per share amounts)
Homebuilding:
Revenues
Home sales $1,090.2 $1,750.2 $2,799.9 $4,410.3
Land/lot sales 11.8 29.4 68.0 80.5
1,102.0 1,779.6 2,867.9 4,490.8
Cost of sales
Home sales 872.1 1,416.1 2,244.7 3,573.8
Land/lot sales 10.7 25.9 54.8 70.1
882.8 1,442.0 2,299.5 3,643.9
Gross profit
Home sales 218.1 334.1 555.2 836.5
Land/lot sales 1.1 3.5 13.2 10.4
219.2 337.6 568.4 846.9
Selling, general and
administrative expense 109.1 177.0 295.1 444.9
Interest expense 2.1 1.5 6.6 5.2
Other expense 5.0 3.8 14.1 4.0
Operating income from
homebuilding 103.0 155.3 252.6 392.8
Financial services:
Revenues 19.0 28.9 47.6 77.7
Selling, general and
administrative expense 12.5 18.2 32.5 48.3
Interest expense 1.6 1.2 3.6 3.5
Other (income) (2.2) (4.7) (4.9) (10.6)
Operating income from financial
services 7.1 14.2 16.4 36.5
Income before income taxes 110.1 169.5 269.0 429.3
Provision for income taxes 41.3 63.6 100.9 161.0
Income before cumulative effect of
change in accounting principle $68.8 $105.9 $168.1 $268.3
Cumulative effect of change in
accounting principle, net of
income taxes --- --- 2.1 ---
Net income $68.8 $105.9 $170.2 $268.3
Amounts per share - basic:
Income before cumulative effect
of change in accounting
principle $0.61 $0.72 $1.49 $2.06
Cumulative effect of change in
accounting principle, net of
income taxes --- --- 0.02 ---
Net income $0.61 $0.72 $1.51 $2.06
Amounts per share - diluted:
Income before cumulative effect
of change in accounting
principle $0.60 $0.67 $1.46 $1.94
Cumulative effect of change in
accounting principle, net of
income taxes --- --- 0.02 ---
Net income per share $0.60 $0.67 $1.48 $1.94
Weighted average number of shares:
Basic 113.4 146.3 113.0 130.2
Diluted 115.3 159.0 114.9 139.3
Other Homebuilding Financial Data
Interest in home and land cost
of sales $24.0 $37.8 $60.7 $89.6
Depreciation and amortization $6.1 $6.7 $17.5 $16.7
Interest Incurred $34.1 $58.3 $94.9 $141.6
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
June 30, 2002
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $42.8
Inventories 4,381.7
Property and equipment (net) 73.3
Other assets 347.3
Excess of cost over net assets acquired (net) 586.4
5,431.5
Financial services:
Cash and cash equivalents 13.1
Mortgage loans held for sale 288.5
Other assets 17.6
319.2
$5,750.7
LIABILITIES
Homebuilding:
Accounts payable and other liabilities $625.2
Notes payable 2,750.3
3,375.5
Financial services:
Accounts payable and other liabilities 10.9
Notes payable 204.6
215.5
3,591.0
Minority interests 20.4
STOCKHOLDERS' EQUITY
Common stock 1.5
Additional capital 1,349.1
Unearned compensation (7.0)
Retained earnings 795.7
2,139.3
$5,750.7
D.R. HORTON, INC.
($'s in millions)
NET SALES CONTRACTS
Three Months Ended June 30, Nine Months Ended June 30,
2001 2002 2001 2002
Units $'s Units $'s Units $'s Units $'s
Mid-Atlantic 674 $146.7 960 $201.3 2,084 $459.4 2,471 $512.0
Midwest 520 139.2 543 126.8 1,441 374.8 1,394 341.1
Southeast 868 152.9 976 161.9 2,266 404.8 2,680 438.6
Southwest 2,453 411.0 3,520 590.5 6,927 1,142.2 9,537 1,583.7
West 1,499 364.7 3,066 954.1 4,237 1,089.4 6,744 2,014.1
6,014 $1,214.5 9,065 $2,034.6 16,955 $3,470.6 22,826 $4,889.5
HOMES CLOSED
Three Months Ended June 30, Nine Months Ended June 30,
2001 2002 2001 2002
Units $'s Units $'s Units $'s Units $'s
Mid-Atlantic 725 $158.8 788 $167.3 1,950 $432.3 2,016 $431.0
Midwest 437 105.2 472 119.4 1,311 313.6 1,323 333.5
Southeast 818 143.6 838 139.1 1,976 348.3 2,516 429.7
Southwest 2,277 378.9 3,062 516.4 5,955 981.7 7,971 1,352.9
West 1,210 303.7 2,717 808.0 2,895 724.0 6,381 1,863.2
5,467 $1,090.2 7,877 $1,750.2 14,087 $2,799.9 20,207 $4,410.3
SALES CONTRACT BACKLOG
As of June 30,
2001 2002
Units $'s Units $'s
Mid-Atlantic 957 $234.7 1,277 $271.3
Midwest 1,030 286.6 989 270.4
Southeast 1,629 288.2 1,628 262.4
Southwest 4,161 711.9 5,868 984.4
West 2,831 740.0 3,824 1,159.7
10,608 $2,261.4 13,586 $2,948.2
WEBSITE ADDRESS: www.DRHORTON.com
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SOURCE D.R. Horton, Inc.
Web site: http: //www.drhorton.com
Company News On-Call: http: //www.prnewswire.com/comp/118697.html
CONTACT: Sam Fuller, CFO, or Stacey Dwyer, EVP, both of D.R. Horton, Inc., +1-817-856-8200
