FORT WORTH, Texas--(BUSINESS WIRE)--Jan. 23, 2007--D.R. Horton,
Inc. (NYSE:DHI), America's Builder, the largest homebuilder in the
United States, Tuesday (January 23, 2007), reported net income for its
first fiscal quarter ended December 31, 2006 of $109.7 million ($0.35
per diluted share), which included pre-tax charges to cost of sales of
$40.9 million ($0.08 per diluted share) of inventory impairments and
$36.8 million ($0.07 per diluted share) of write-offs of deposits and
pre-acquisition costs related to land option contracts that the
Company does not intend to pursue. Earnings for the same quarter of
fiscal 2006 were $310.1 million ($0.98 per diluted share).
Homebuilding revenue totaled $2.8 billion in the first quarter of both
fiscal 2006 and 2007. Homes closed totaled 10,202 homes, compared to
9,891 homes in the year ago quarter.
The Company's sales order backlog of homes under contract at
December 31, 2006 was 16,694 homes ($4.7 billion), compared to 20,816
homes ($6.2 billion) at December 31, 2005. As previously reported, net
sales orders for the quarter totaled 8,771 homes ($2.3 billion),
compared to 11,463 homes ($3.2 billion) for the same quarter of fiscal
2006.
The Company will host a conference call on Tuesday, January 23rd
at 10:00 a.m. ET. 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, "Our people worked
hard to achieve these results during a time when conditions in the
homebuilding industry remain challenging. We continued to focus on
improving our strong balance sheet and reducing our inventory while
managing our business profitably. We reduced our lot position to
297,000 lots owned and controlled, down 25% from our March 2006 peak
of 396,000. We also reduced our number of homes under construction to
approximately 26,000 homes, down 35% from our June 2006 peak of
40,000. Our disciplined balance sheet management and our continued
profitability have resulted in $1.2 billion of positive cash flows
from operations during the last six months."
D.R. Horton, Inc., America's Builder, is the largest homebuilder
in the United States, delivering more than 53,000 homes in its fiscal
year ended September 30, 2006. Founded in 1978 in Fort Worth, Texas,
D.R. Horton has expanded its presence to include 85 markets in 27
states in the Northeast, Southeast, South Central, Southwest,
California and West regions of the United States. The Company is
engaged in the construction and sale of high quality homes with sales
prices ranging from $90,000 to over $900,000. D.R. Horton also
provides mortgage financing and title services for homebuyers through
its mortgage and title subsidiaries.
WEBSITE ADDRESS: www.DRHORTON.com
D.R. HORTON, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended
December 31,
--------------------
2005 2006
--------- ----------
(In millions, except
per share amounts)
Homebuilding:
Revenues
Home sales $2,789.1 $2,761.1
Land/lot sales 52.7 40.4
--------- ----------
2,841.8 2,801.5
--------- ----------
Cost of sales
Home sales 2,013.4 2,246.9
Land/lot sales 19.3 32.9
Inventory impairments and land option cost
write-offs 3.7 77.7
--------- ----------
2,036.4 2,357.5
--------- ----------
Gross profit
Home sales 775.7 514.2
Land/lot sales 33.4 7.5
Inventory impairments and land option cost
write-offs (3.7) (77.7)
--------- ----------
805.4 444.0
--------- ----------
Selling, general and administrative expense 325.7 295.3
Interest expense 4.5 0.0
Other (income) (4.9) (1.1)
--------- ----------
Operating income from Homebuilding 480.1 149.8
--------- ----------
Financial services:
Revenues 61.3 66.5
General and administrative expense 47.3 45.0
Interest expense 8.2 9.7
Other (income) (14.2) (15.3)
--------- ----------
Operating income from Financial Services 20.0 27.1
--------- ----------
Income before income taxes 500.1 176.9
Provision for income taxes 190.0 67.2
--------- ----------
Net income $310.1 $109.7
========= ==========
Basic:
Net income per share $0.99 $0.35
========= ==========
Weighted average number of common shares 312.9 313.4
========= ==========
Diluted:
Net income per share $0.98 $0.35
========= ==========
Weighted average number of common shares 317.6 315.6
========= ==========
Other Consolidated Financial Data:
Interest amortized to home and land/lot cost of
sales $43.8 $54.2
========= ==========
Depreciation and amortization $12.7 $15.7
========= ==========
Interest incurred $81.8 $87.7
========= ==========
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
As of
December 31, 2006
-------------------
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $65.5
Inventories
Construction in progress and finished homes 4,160.9
Residential land and lots-developed and under
development 6,878.4
Land held for development 198.7
Consolidated land inventory not owned 104.6
-------------------
11,342.6
Property and equipment (net) 127.4
Earnest money deposits and other assets 777.9
Goodwill 578.9
-------------------
12,892.3
-------------------
Financial Services:
Cash and cash equivalents 74.3
Mortgage loans held for sale 652.2
Other assets 49.9
-------------------
776.4
-------------------
Total assets $13,668.7
===================
LIABILITIES
Homebuilding:
Accounts payable $812.4
Accrued expenses and other liabilities 1,051.0
Notes payable 4,644.9
-------------------
6,508.3
Financial Services:
Accounts payable and other liabilities 21.1
Notes payable 504.0
-------------------
525.1
-------------------
7,033.4
-------------------
Minority interests 110.5
-------------------
STOCKHOLDERS' EQUITY
Common stock 3.2
Additional capital 1,667.6
Retained earnings 4,949.7
Treasury stock (at cost) (95.7)
-------------------
6,524.8
-------------------
Total liabilities and stockholders' equity $13,668.7
===================
D.R. HORTON, INC.
($'s in millions)
NET SALES ORDERS
Three Months Ended December 31,
-------------------------------------
2005 2006
------------------- -----------------
Homes $'s Homes $'s
--------- --------- ------- ---------
Northeast 1,694 $456.9 1,155 $313.2
Southeast 1,795 468.5 1,372 321.6
South Central 2,737 472.6 1,923 348.5
Southwest 2,713 736.6 2,299 485.9
California 1,632 712.9 1,336 572.7
West 892 319.3 686 251.0
--------- --------- ------- ---------
11,463 $3,166.8 8,771 $2,292.9
========= ========= ======= =========
HOMES CLOSED
Three Months Ended December 31,
-------------------------------------
2005 2006
------------------- -----------------
Homes $'s Homes $'s
--------- --------- ------- ---------
Northeast 1,476 $399.4 1,421 $380.7
Southeast 1,572 390.1 1,489 365.4
South Central 2,334 395.5 2,522 450.6
Southwest 2,105 566.5 2,378 586.8
California 1,532 726.3 1,583 695.6
West 872 311.3 809 282.0
--------- --------- ------- ---------
9,891 $2,789.1 10,202 $2,761.1
========= ========= ======= =========
SALES ORDER BACKLOG
As of December 31,
-------------------------------------
2005 2006
------------------- -----------------
Homes $'s Homes $'s
--------- --------- ------- ---------
Northeast 4,112 $1,206.4 2,636 $729.2
Southeast 3,342 987.8 2,031 590.1
South Central 3,378 601.4 3,614 675.7
Southwest 5,676 1,552.9 5,675 1,449.3
California 3,022 1,390.4 1,841 918.8
West 1,286 474.1 897 353.8
--------- --------- ------- ---------
20,816 $6,213.0 16,694 $4,716.9
========= ========= ======= =========
CONTACT: D.R. Horton, Inc., Fort Worth
Stacey Dwyer, EVP, 817-390-8200
SOURCE: D.R. Horton, Inc.
