This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

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

Stocks in this article: DHI

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




3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs