D.R. Horton, Inc. : D.R. Horton, Inc., America's Builder, Reports First Quarter Fiscal 2012 Results and Declares Quarterly Dividend

D.R. Horton, Inc. (NYSE:DHI), America's Builder, today reported net income for its first fiscal quarter ended December 31, 2011 of $27.7 million, or $0.09 per diluted share, compared to a net loss of $20.4 million, or $0.06 per diluted share, for the quarter ended December 31, 2010. Homebuilding revenue for the first quarter of fiscal 2012 totaled $885.6 million, compared to $767.0 million in the year ago quarter. Homes closed in the quarter totaled 4,118, compared to 3,637 homes in the year ago quarter.

Net sales orders for the first quarter ended December 31, 2011 totaled 3,794 homes ($823.2 million), compared to 3,363 homes ($705.6 million) in the year ago quarter. The Company's cancellation rate (cancelled sales orders divided by gross sales orders) for the first quarter of fiscal 2012 was 26%. The Company's sales order backlog of homes under contract at December 31, 2011 was 4,530 homes ($975.0 million), compared to 3,854 homes ($795.4 million) at December 31, 2010.

During the first quarter, the Company repurchased $10.8 million of its 6.5% senior notes due 2016 for $10.6 million, plus accrued interest. The Company ended the quarter with $1.0 billion of homebuilding unrestricted cash and marketable securities and net homebuilding debt to total capital of 17.5%. Net homebuilding debt to total capital consists of homebuilding notes payable net of cash and marketable securities divided by total equity plus homebuilding notes payable net of cash and marketable securities.

The Company has declared a quarterly cash dividend of $0.0375 per share. The dividend is payable on February 21, 2012 to stockholders of record on February 10, 2012.

Donald R. Horton, Chairman of the Board, said, "We are off to a strong start in fiscal 2012. We were profitable in our first quarter and are focused on being profitable each quarter and for the entire fiscal year. Our net sales orders, homes closed and sales order backlog all increased by double-digit percentages over the prior year quarter. We are looking forward to the spring selling season with cautious optimism. We are positioned for growth, and we remain committed to controlling our construction costs, SG&A and inventory levels while maintaining our strong balance sheet and liquidity."

The Company will host a conference call today (Friday, January 27th) at 10:00 a.m. Eastern time. The dial-in number is 877-407-8033, and the call will also be webcast from www.drhorton.com on the "Investors" page.

D.R. Horton, Inc., America's Builder, is the largest homebuilder in the United States, based on its 17,176 homes closed in the twelve-month period ended December 31, 2011. Founded in 1978 in Fort Worth, Texas, D.R. Horton has operations in 73 markets in 25 states in the East, Midwest, Southeast, South Central, Southwest 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 $600,000. 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 include that we are looking forward to the spring selling season with cautious optimism. The forward-looking statements also include that we have positioned ourselves for growth, and we remain committed to controlling our construction costs, SG&A and inventory levels while maintaining our strong balance sheet and liquidity.

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: the continuing downturn in the homebuilding industry, including further deterioration in industry or broader economic conditions; the continuing constriction of the credit markets, which could limit our ability to access capital and increase our costs of capital; the reduction in availability of mortgage financing, increases in mortgage interest rates and the effects of government programs; the limited success of our strategies in responding to adverse conditions in the industry; the impact of an inflationary or deflationary environment; changes in general economic, real estate and other business conditions; the risks associated with our inventory ownership position in changing market conditions; supply risks for land, materials and labor; changes in the costs of owning a home; the effects of governmental regulations and environmental matters on our homebuilding operations; the effects of governmental regulation on our financial services operations; the uncertainties inherent in home warranty and construction defect claims matters; our substantial debt and our ability to comply with related debt covenants, restrictions and limitations; competitive conditions within our industry; our ability to effect any future growth strategies successfully; our ability to realize our deferred income tax asset; and our ability to utilize our tax losses, which could be substantially limited if we experienced an ownership change as defined in the Internal Revenue Code. 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, which is filed with the Securities and Exchange Commission.

WEBSITE ADDRESS: www.drhorton.com

D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
		December 31,					September 30,
		2011					2011
ASSETS		(In millions)
Homebuilding:
Cash and cash equivalents		$	721.1				$	715.5
Marketable securities, available-for-sale			298.7					297.6
Restricted cash			44.6					49.1
Inventories:
Construction in progress and finished homes			1,359.3					1,369.2
Residential land and lots - developed and under development			1,412.5					1,370.7
Land held for development			707.1					709.8
			3,478.9					3,449.7
Income taxes receivable			12.4					12.4
Deferred income taxes, net of valuation allowance of $837.1 million and $848.5 million at December 31, 2011 and September 30, 2011, respectively			-					-
Property and equipment, net			55.0					57.6
Other assets			395.9					398.4
Goodwill			15.9					15.9
			5,022.5					4,996.2
Financial Services:
Cash and cash equivalents			17.0					17.1
Mortgage loans held for sale			275.9					294.1
Other assets			48.0					51.0
			340.9					362.2
		$	5,363.4				$	5,358.4
LIABILITIES
Homebuilding:
Accounts payable		$	143.4				$	154.0
Accrued expenses and other liabilities			800.5					829.8
Notes payable			1,582.3					1,588.1
			2,526.2					2,571.9
Financial Services:
Accounts payable and other liabilities			38.9					46.5
Mortgage repurchase facility			146.0					116.5
			184.9					163.0
			2,711.1					2,734.9
EQUITY
Common stock			3.2					3.2
Additional paid-in capital			1,929.9					1,917.0
Retained earnings			850.4					834.6
Treasury stock, at cost			(134.3	)				(134.3	)
Accumulated other comprehensive income			0.2					0.1
			2,649.4					2,620.6
Noncontrolling interests			2.9					2.9
			2,652.3					2,623.5
		$	5,363.4				$	5,358.4

D.R. HORTON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
		Three Months Ended
		December 31,
		2011				2010
		(In millions, except per share data)
Homebuilding:
Revenues:
Home sales		$	884.3			$	761.1
Land/lot sales			1.3				5.9
			885.6				767.0
Cost of sales:
Home sales			735.6				642.5
Land/lot sales			-				5.9
Inventory impairments and land option cost write-offs			1.4				8.4
			737.0				656.8
Gross profit:
Home sales			148.7				118.6
Land/lot sales			1.3				-
Inventory impairments and land option cost write-offs			(1.4	)			(8.4	)
			148.6				110.2
Selling, general and administrative expense			119.0				118.9
Interest expense			6.9				16.2
(Gain) loss on early retirement of debt, net			(0.1	)			1.5
Other (income)			(2.2	)			(2.3	)
Operating income (loss) from Homebuilding			25.0				(24.1	)
Financial Services:
Revenues, net of recourse and reinsurance expense			21.0				21.2
General and administrative expense			18.9				19.0
Interest expense			0.9				0.3
Interest and other (income)			(3.0	)			(2.3	)
Operating income from Financial Services			4.2				4.2
Income (loss) before income taxes			29.2				(19.9	)
Income tax expense			1.5				0.5
Net income (loss)		$	27.7			$	(20.4	)
Other comprehensive income (loss), net of income tax:
Unrealized gain (loss) related to available-for-sale securities			0.1				(0.3	)
Comprehensive income (loss)		$	27.8			$	(20.7	)
Basic:
Net income (loss) per share		$	0.09			$	(0.06	)
Weighted average number of common shares			316.3				319.1
Diluted:
Net income (loss) per share		$	0.09			$	(0.06	)
Adjusted weighted average number of common shares			316.5				319.1
Other Consolidated Financial Data:
Interest amortized to home and land/lot cost of sales		$	20.4			$	20.9
Depreciation		$	5.0			$	4.9
Interest incurred		$	28.8			$	35.5

D.R. HORTON, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
		Three Months Ended
		December 31, 2011
		(In millions)
Operating Activities
Net income		$	27.7
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation			5.0
Amortization of discounts and fees			9.8
Stock based compensation expense			5.0
Gain on early retirement of debt, net			(0.1	)
Inventory impairments and land option cost write-offs			1.4
Changes in operating assets and liabilities:
Decrease in construction in progress and finished homes			9.7
Increase in residential land and lots -- developed, under development and held for development			(40.1	)
Decrease in other assets			4.5
Decrease in mortgage loans held for sale			18.2
Decrease in accounts payable, accrued expenses and other liabilities			(44.4	)
Net cash used in operating activities			(3.3	)
Investing Activities
Purchases of property and equipment			(2.4	)
Purchases of marketable securities			(24.4	)
Proceeds from the sale or maturity of marketable securities			21.5
Decrease in restricted cash			4.5
Net cash used in investing activities			(0.8	)
Financing Activities
Proceeds from notes payable			29.5
Repayment of notes payable			(12.6	)
Proceeds from stock associated with certain employee benefit plans			4.6
Cash dividends paid			(11.9	)
Net cash provided by financing activities			9.6
Increase in Cash and Cash Equivalents			5.5
Cash and cash equivalents at beginning of period			732.6
Cash and cash equivalents at end of period		$	738.1

		D.R. HORTON, INC.
		($'s in millions)
		NET SALES ORDERS
		Three Months Ended December 31,
		2011					2010
		Homes		Value			Homes		Value
East		509		$	115.3		400		$	87.9
Midwest		213			59.1		186			51.1
Southeast		921			181.1		769			148.8
South Central		1,299			233.2		1,162			204.7
Southwest		249			46.9		255			47.5
West		603			187.6		591			165.6
		3,794		$	823.2		3,363		$	705.6
		HOMES CLOSED
		Three Months Ended December 31,
		2011					2010
		Homes		Value			Homes		Value
East		495		$	118.8		439		$	100.7
Midwest		213			57.7		215			57.8
Southeast		1,013			195.6		747			143.9
South Central		1,492			266.7		1,303			228.8
Southwest		279			54.0		312			58.2
West		626			191.5		621			171.7
		4,118		$	884.3		3,637		$	761.1
		SALES ORDER BACKLOG
		As of December 31,
		2011					2010
		Homes		Value			Homes		Value
East		620		$	144.1		433		$	90.7
Midwest		288			81.9		218			63.5
Southeast		1,193			232.4		834			167.4
South Central		1,517			276.0		1,550			273.1
Southwest		396			69.5		348			61.1
West		516			171.1		471			139.6
		4,530		$	975.0		3,854		$	795.4

D.R. Horton, Inc.
Jessica Hansen, 817-390-8200
Director of Investor Relations

Partner Area