Delaware | 1-14122 | 75-2386963 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibit |
99.1 | Press Release dated July 25, 2013 related to the Company’s results and related information for the third quarter ended June 30, 2013. |
D.R. Horton, Inc. | ||||
Date: | July 25, 2013 | By: | /S/ BILL W. WHEAT | |
Bill W. Wheat | ||||
Executive Vice President and | ||||
Chief Financial Officer |
Exhibit Number | Description | |
99.1 | Press Release dated July 25, 2013 |
• | Pre-tax income increased 184% to $205.1 million |
• | Pre-tax income margin increased 580 basis points to 12.1% of revenues |
• | Home sales gross margin increased 340 basis points to 21.4% |
• | Homebuilding SG&A as a percentage of homebuilding revenues improved 200 basis points to 10.2% |
• | Net sales orders increased 12% in homes to 6,822 and 30% in value to $1.8 billion |
• | Homes closed increased 30% in homes to 6,464 and 46% in value to $1.6 billion |
• | Sales order backlog increased 36% in homes to 9,911 and 56% in value to $2.6 billion |
June 30, 2013 | September 30, 2012 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Homebuilding: | |||||||
Cash and cash equivalents | $ | 607.8 | $ | 1,030.4 | |||
Marketable securities, available-for-sale | — | 298.0 | |||||
Restricted cash | 68.6 | 49.3 | |||||
Inventories: | |||||||
Construction in progress and finished homes | 2,374.8 | 1,682.7 | |||||
Residential land and lots — developed and under development | 3,032.7 | 1,838.4 | |||||
Land held for development | 504.0 | 644.1 | |||||
5,911.5 | 4,165.2 | ||||||
Income taxes receivable | — | 14.4 | |||||
Deferred income taxes, net of valuation allowance of $22.6 million and $41.9 million at June 30, 2013 and September 30, 2012, respectively | 638.0 | 709.5 | |||||
Property and equipment, net | 96.1 | 72.6 | |||||
Other assets | 473.5 | 456.8 | |||||
Goodwill | 38.9 | 38.9 | |||||
7,834.4 | 6,835.1 | ||||||
Financial Services: | |||||||
Cash and cash equivalents | 30.2 | 17.3 | |||||
Mortgage loans held for sale | 358.2 | 345.3 | |||||
Other assets | 64.2 | 50.5 | |||||
452.6 | 413.1 | ||||||
Total assets | $ | 8,287.0 | $ | 7,248.2 | |||
LIABILITIES | |||||||
Homebuilding: | |||||||
Accounts payable | $ | 311.1 | $ | 216.2 | |||
Accrued expenses and other liabilities | 938.6 | 893.8 | |||||
Notes payable | 2,863.9 | 2,305.3 | |||||
4,113.6 | 3,415.3 | ||||||
Financial Services: | |||||||
Accounts payable and other liabilities | 46.2 | 50.4 | |||||
Mortgage repurchase facility | 219.7 | 187.8 | |||||
265.9 | 238.2 | ||||||
Total liabilities | 4,379.5 | 3,653.5 | |||||
EQUITY | |||||||
Common stock | 3.3 | 3.3 | |||||
Additional paid-in capital | 2,027.7 | 1,979.8 | |||||
Retained earnings | 2,006.1 | 1,743.1 | |||||
Treasury stock, at cost | (134.3 | ) | (134.3 | ) | |||
Accumulated other comprehensive income | 1.9 | 0.2 | |||||
Total stockholders’ equity | 3,904.7 | 3,592.1 | |||||
Noncontrolling interests | 2.8 | 2.6 | |||||
Total equity | 3,907.5 | 3,594.7 | |||||
Total liabilities and equity | $ | 8,287.0 | $ | 7,248.2 |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In millions, except per share data) | |||||||||||||||
Homebuilding: | |||||||||||||||
Revenues: | |||||||||||||||
Home sales | $ | 1,630.8 | $ | 1,115.2 | $ | 4,222.8 | $ | 2,930.1 | |||||||
Land/lot sales and other | 13.7 | 1.0 | 45.3 | 7.3 | |||||||||||
1,644.5 | 1,116.2 | 4,268.1 | 2,937.4 | ||||||||||||
Cost of sales: | |||||||||||||||
Home sales | 1,281.5 | 914.6 | 3,364.2 | 2,417.3 | |||||||||||
Land/lot sales and other | 13.1 | 0.8 | 38.8 | 4.0 | |||||||||||
Inventory and land option charges | 0.8 | 2.5 | 4.0 | 4.7 | |||||||||||
1,295.4 | 917.9 | 3,407.0 | 2,426.0 | ||||||||||||
Gross profit: | |||||||||||||||
Home sales | 349.3 | 200.6 | 858.6 | 512.8 | |||||||||||
Land/lot sales and other | 0.6 | 0.2 | 6.5 | 3.3 | |||||||||||
Inventory and land option charges | (0.8 | ) | (2.5 | ) | (4.0 | ) | (4.7 | ) | |||||||
349.1 | 198.3 | 861.1 | 511.4 | ||||||||||||
Selling, general and administrative expense | 167.5 | 136.4 | 463.3 | 382.9 | |||||||||||
Interest expense | — | 6.2 | 5.1 | 18.7 | |||||||||||
Other (income) | (3.8 | ) | (2.6 | ) | (10.3 | ) | (8.2 | ) | |||||||
Operating income from Homebuilding | 185.4 | 58.3 | 403.0 | 118.0 | |||||||||||
Financial Services: | |||||||||||||||
Revenues, net of recourse and reinsurance expense | 48.3 | 33.8 | 131.3 | 80.4 | |||||||||||
General and administrative expense | 31.3 | 21.5 | 84.9 | 59.9 | |||||||||||
Interest and other (income) expense | (2.7 | ) | (1.6 | ) | (5.7 | ) | (5.2 | ) | |||||||
Operating income from Financial Services | 19.7 | 13.9 | 52.1 | 25.7 | |||||||||||
Income before income taxes | 205.1 | 72.2 | 455.1 | 143.7 | |||||||||||
Income tax expense (benefit) | 59.1 | (715.6 | ) | 131.9 | (712.5 | ) | |||||||||
Net income | $ | 146.0 | $ | 787.8 | $ | 323.2 | $ | 856.2 | |||||||
Other comprehensive income (loss), net of income tax: | |||||||||||||||
Unrealized loss related to available-for-sale securities | — | (0.1 | ) | (0.2 | ) | (0.1 | ) | ||||||||
Unrealized gain related to debt securities collateralized by residential real estate | 1.9 | — | 1.9 | — | |||||||||||
Comprehensive income | $ | 147.9 | $ | 787.7 | $ | 324.9 | $ | 856.1 | |||||||
Basic: | |||||||||||||||
Net income per share | $ | 0.45 | $ | 2.47 | $ | 1.00 | $ | 2.70 | |||||||
Weighted average number of common shares | 322.6 | 318.8 | 321.8 | 317.6 | |||||||||||
Diluted: | |||||||||||||||
Net income per share | $ | 0.42 | $ | 2.22 | $ | 0.93 | $ | 2.47 | |||||||
Numerator for diluted income per share after assumed conversions | $ | 152.0 | $ | 797.3 | $ | 340.7 | $ | 883.3 | |||||||
Adjusted weighted average number of common shares | 365.6 | 360.0 | 365.0 | 357.7 | |||||||||||
Other Consolidated Financial Data: | |||||||||||||||
Interest amortized to home and land/lot cost of sales | $ | 28.6 | $ | 24.8 | $ | 81.1 | $ | 66.5 | |||||||
Depreciation and amortization | $ | 5.9 | $ | 4.6 | $ | 16.0 | $ | 14.4 | |||||||
Interest incurred | $ | 44.4 | $ | 31.8 | $ | 125.5 | $ | 89.6 |
Nine Months Ended June 30, 2013 | |||
(In millions) | |||
OPERATING ACTIVITIES | |||
Net income | $ | 323.2 | |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Depreciation and amortization | 16.0 | ||
Amortization of discounts and fees | 29.7 | ||
Stock based compensation expense | 13.1 | ||
Deferred income taxes | 79.5 | ||
Gain on sale of marketable securities | (0.2 | ) | |
Inventory and land option charges | 4.0 | ||
Changes in operating assets and liabilities: | |||
Increase in construction in progress and finished homes | (692.1 | ) | |
Increase in residential land and lots – developed, under development, and held for development | (1,046.5 | ) | |
Increase in other assets | (7.1 | ) | |
Decrease in income taxes receivable | 14.4 | ||
Increase in mortgage loans held for sale | (12.9 | ) | |
Increase in accounts payable, accrued expenses and other liabilities | 142.6 | ||
Net cash used in operating activities | (1,136.3 | ) | |
INVESTING ACTIVITIES | |||
Purchases of property and equipment | (40.6 | ) | |
Purchases of marketable securities | (28.9 | ) | |
Proceeds from the sale or maturity of marketable securities | 325.4 | ||
Increase in restricted cash | (19.3 | ) | |
Net principal increase of other mortgage loans and real estate owned | (1.0 | ) | |
Purchases of debt securities collateralized by residential real estate | (18.6 | ) | |
Principal payments received on debt securities collateralized by residential real estate | 1.4 | ||
Payment related to acquisition of a business | (9.4 | ) | |
Net cash provided by investing activities | 209.0 | ||
FINANCING ACTIVITIES | |||
Proceeds from notes payable | 892.0 | ||
Repayment of notes payable | (342.1 | ) | |
Proceeds from stock associated with certain employee benefit plans | 27.9 | ||
Cash dividends paid | (60.2 | ) | |
Net cash provided by financing activities | 517.6 | ||
DECREASE IN CASH AND CASH EQUIVALENTS | (409.7 | ) | |
Cash and cash equivalents at beginning of period | 1,047.7 | ||
Cash and cash equivalents at end of period | $ | 638.0 |
NET SALES ORDERS | ||||||||||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Homes | Value | Homes | Value | Homes | Value | Homes | Value | |||||||||||||||||
East | 715 | $ | 198.7 | 566 | $ | 151.9 | 2,062 | $ | 561.3 | 1,686 | $ | 421.0 | ||||||||||||
Midwest | 472 | 161.7 | 356 | 111.1 | 1,201 | 403.2 | 971 | 286.7 | ||||||||||||||||
Southeast | 1,929 | 467.9 | 1,487 | 305.7 | 5,838 | 1,363.8 | 3,881 | 786.8 | ||||||||||||||||
South Central | 2,181 | 468.7 | 1,932 | 370.2 | 6,356 | 1,313.4 | 5,248 | 974.1 | ||||||||||||||||
Southwest | 428 | 87.6 | 568 | 107.4 | 1,154 | 236.0 | 1,344 | 250.1 | ||||||||||||||||
West | 1,097 | 444.0 | 1,170 | 365.7 | 3,349 | 1,261.2 | 2,642 | 830.0 | ||||||||||||||||
6,822 | $ | 1,828.6 | 6,079 | $ | 1,412.0 | 19,960 | $ | 5,138.9 | 15,772 | $ | 3,548.7 |
HOMES CLOSED | ||||||||||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Homes | Value | Homes | Value | Homes | Value | Homes | Value | |||||||||||||||||
East | 622 | $ | 163.2 | 569 | $ | 140.6 | 1,713 | $ | 449.6 | 1,615 | $ | 392.9 | ||||||||||||
Midwest | 442 | 147.6 | 308 | 88.5 | 1,028 | 329.9 | 768 | 217.9 | ||||||||||||||||
Southeast | 1,886 | 425.6 | 1,204 | 241.4 | 4,805 | 1,050.0 | 3,313 | 650.1 | ||||||||||||||||
South Central | 2,047 | 414.5 | 1,655 | 306.7 | 5,497 | 1,083.7 | 4,564 | 833.2 | ||||||||||||||||
Southwest | 415 | 86.1 | 392 | 71.3 | 1,179 | 241.0 | 978 | 180.9 | ||||||||||||||||
West | 1,052 | 393.8 | 829 | 266.7 | 3,067 | 1,068.6 | 2,077 | 655.1 | ||||||||||||||||
6,464 | $ | 1,630.8 | 4,957 | $ | 1,115.2 | 17,289 | $ | 4,222.8 | 13,315 | $ | 2,930.1 |
SALES ORDER BACKLOG | ||||||||||||
As of June 30, | ||||||||||||
2013 | 2012 | |||||||||||
Homes | Value | Homes | Value | |||||||||
East | 1,012 | $ | 282.2 | 677 | $ | 175.6 | ||||||
Midwest | 598 | 200.8 | 491 | 149.4 | ||||||||
Southeast | 3,242 | 778.7 | 1,853 | 383.6 | ||||||||
South Central | 3,091 | 663.2 | 2,394 | 450.5 | ||||||||
Southwest | 674 | 129.8 | 792 | 145.8 | ||||||||
West | 1,294 | 529.3 | 1,104 | 349.9 | ||||||||
9,911 | $ | 2,584.0 | 7,311 | $ | 1,654.8 |