D.R. Horton, Inc. : D.R. Horton, Inc., America's Builder, Reports First Quarter Fiscal 2012 Results and Declares Quarterly Dividend
01/27/2012| 07:05am US/Eastern
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
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 thatwe 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
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.