The Company ended the quarter with $961.3 million of homebuilding unrestricted cash and marketable securities and net homebuilding debt to total capital of 18.9%. 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 expects stronger closings and profitability in the second half of the fiscal year, consistent with traditional seasonal trends. Its current expectation for home sales gross margin is that it will remain in the mid-16% to mid-17% range. Homebuilding SG&A expense is expected to increase in the third and fourth fiscal quarters due to variable components; however, homebuilding SG&A as a percentage of homebuilding revenues should improve as the Company closes more homes and continues to leverage its fixed cost structure. Additionally, if the Company’s current business trends continue, it expects to be out of its three-year cumulative loss position before the end of the fiscal year. The Company may be able to significantly reduce the valuation allowance for its deferred tax asset at some point in the next few quarters if its business, the homebuilding industry and economic conditions remain stable.
D.R. Horton, Inc., America’s Builder, Reports Fiscal 2012 Second Quarter Results And Declares Quarterly Dividend
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