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D.R. Horton, Inc., America’s Builder, Reports Fiscal 2013 First Quarter Earnings

WEBSITE ADDRESS: www.drhorton.com

 
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
         
December 31, September 30,
2012 2012
ASSETS (In millions)
Homebuilding:
Cash and cash equivalents $ 546.4 $ 1,030.4
Marketable securities, available-for-sale 96.7 298.0
Restricted cash 54.8 49.3
Inventories:
Construction in progress and finished homes 1,909.5 1,682.7
Residential land and lots - developed and under development 2,475.7 1,838.4
Land held for development   629.9     644.1  
5,015.1 4,165.2
Income taxes receivable - 14.4

Deferred income taxes, net of valuation allowance of $41.9 million at December 31, 2012 and September 30, 2012

683.5 709.5
Property and equipment, net 81.9 72.6
Other assets 454.2 456.8
Goodwill   38.9     38.9  
  6,971.5     6,835.1  
Financial Services:
Cash and cash equivalents 20.5 17.3
Mortgage loans held for sale 307.9 345.3
Other assets   47.4     50.5  
  375.8     413.1  
$ 7,347.3   $ 7,248.2  
LIABILITIES
Homebuilding:
Accounts payable $ 241.8 $ 216.2
Accrued expenses and other liabilities 856.6 893.8
Notes payable   2,424.3     2,305.3  
  3,522.7     3,415.3  
Financial Services:
Accounts payable and other liabilities 42.1 50.4
Mortgage repurchase facility   169.4     187.8  
  211.5     238.2  
  3,734.2     3,653.5  
 
EQUITY
Common stock 3.3 3.3
Additional paid-in capital 1,992.2 1,979.8
Retained earnings 1,749.2 1,743.1
Treasury stock, at cost (134.3 ) (134.3 )
Accumulated other comprehensive income   -     0.2  
3,610.4 3,592.1
Noncontrolling interests   2.7     2.6  
  3,613.1     3,594.7  
$ 7,347.3   $ 7,248.2  
 
D.R. HORTON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED)
       
Three Months Ended
December 31,
    2012       2011  
(In millions, except per share data)
Homebuilding:
Revenues:
Home sales $ 1,223.3 $ 884.3
Land/lot sales and other   9.9     1.3  
 
  1,233.2     885.6  
Cost of sales:
Home sales 992.8 735.6
Land/lot sales and other 8.2 -
Inventory impairments and land option cost write-offs   1.3     1.4  
 
  1,002.3     737.0  
Gross profit:
Home sales 230.5 148.7
Land/lot sales and other 1.7 1.3
Inventory impairments and land option cost write-offs   (1.3 )   (1.4 )
 
  230.9     148.6  
 
Selling, general and administrative expense 140.8 119.0
Interest expense 3.2 6.9
Gain on early retirement of debt, net - (0.1 )
Other (income)   (3.3 )   (2.2 )
 
Operating income from Homebuilding   90.2     25.0  
 
Financial Services:
Revenues, net of recourse and reinsurance expense 41.9 21.0
General and administrative expense 25.7 18.9
Interest expense 1.0 0.9
Interest and other (income)   (2.5 )   (3.0 )
 
Operating income from Financial Services   17.7     4.2  
 
Income before income taxes 107.9 29.2
Income tax expense   41.6     1.5  
 
Net income $ 66.3   $ 27.7  
 
Other comprehensive income (loss), net of income tax:
Unrealized (loss) gain related to available-for-sale securities   (0.1 )   0.1  
 
Comprehensive income $ 66.2   $ 27.8  
 
Basic:
Net income per share $ 0.21   $ 0.09  
Weighted average number of common shares   321.1     316.3  
Diluted:
Net income per share $ 0.20   $ 0.09  
Numerator for diluted income per share afterassumed conversions
$ 72.0   $ 27.7  
Adjusted weighted average number of common shares   364.1     316.5  
 
Other Consolidated Financial Data:
 
Interest amortized to home and land/lot cost of sales $ 24.9   $ 20.4  
Depreciation and amortization $ 4.8   $ 5.0  
Interest incurred $ 38.1   $ 28.8  
   
D.R. HORTON, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
 
 
Three Months Ended
December 31, 2012
(In millions)
 
Operating Activities
Net income $ 66.3

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation and amortization 4.8
Amortization of discounts and fees 10.4
Stock based compensation expense 3.5
Deferred income taxes 35.2
Gain on sale of marketable securities (0.2 )
Inventory impairments and land option cost write-offs 1.3
Changes in operating assets and liabilities:
Increase in construction in progress and finished homes (226.8 )

Increase in residential land and lots — developed, under development, and held for development

(612.8 )
Decrease in other assets 22.8
Decrease in income taxes receivable 14.4
Decrease in mortgage loans held for sale 37.4
Decrease in accounts payable, accrued expenses and other liabilities   (12.8 )
Net cash used in operating activities   (656.5 )
Investing Activities
Purchases of property and equipment (14.0 )
Purchases of marketable securities (26.8 )
Proceeds from the sale or maturity of marketable securities 226.7
Increase in restricted cash (5.5 )

Net principal increase of other mortgage loans and real estate owned

(0.2 )
Purchases of debt securities collateralized by residential real estate (18.6 )
Payment related to acquisition of a business   (9.4 )
Net cash provided by investing activities   152.2  
Financing Activities
Proceeds from notes payable 100.0
Repayment of notes payable (18.4 )
Proceeds from stock associated with certain employee benefit plans 2.1
Cash dividends paid   (60.2 )
Net cash provided by financing activities 23.5
Decrease in Cash and Cash Equivalents (480.8 )
Cash and cash equivalents at beginning of period   1,047.7  
Cash and cash equivalents at end of period $ 566.9  
     
D.R. HORTON, INC.
($'s in millions)
     
NET SALES ORDERS
 
Three Months Ended December 31,
2012 2011
Homes Value Homes Value
East 528 $ 141.4 509 $ 115.3
Midwest 275 89.9 213 59.1
Southeast 1,584 353.5 921 181.1
South Central 1,641 330.6 1,299 233.2
Southwest 247 53.2 249 46.9
West 984   345.5 603   187.6
5,259 $ 1,314.1 3,794 $ 823.2
 
 
HOMES CLOSED
 
Three Months Ended December 31,
2012 2011
Homes Value Homes Value
East 517 $ 137.4 495 $ 118.8
Midwest 287 89.4 213 57.7
Southeast 1,374 291.3 1,013 195.6
South Central 1,619 309.3 1,492 266.7
Southwest 383 76.0 279 54.0
West 1,002   319.9 626   191.5
5,182 $ 1,223.3 4,118 $ 884.3
 
 
SALES ORDER BACKLOG
 
As of December 31,
2012 2011
Homes Value Homes Value
East 674 $ 174.6 620 $ 144.1
Midwest 413 127.9 288 81.9
Southeast 2,419 527.1 1,193 232.4
South Central 2,254 454.8 1,517 276.0
Southwest 563 112.1 396 69.5
West 994   362.2 516   171.1
7,317 $ 1,758.7 4,530 $ 975.0




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