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 November 12, 2013 related to the Company’s results and related information for the fourth quarter and fiscal year ended September 30, 2013. |
D.R. Horton, Inc. | ||||
Date: | November 12, 2013 | By: | /S/ BILL W. WHEAT | |
Bill W. Wheat | ||||
Executive Vice President and | ||||
Chief Financial Officer |
Exhibit Number | Description | |
99.1 | Press Release dated November 12, 2013 |
• | Pre-tax income increased 104% to $202.8 million |
• | Pre-tax income margin increased 350 basis points to 10.9% of revenues |
• | Home sales gross margin increased 380 basis points to 21.9% |
• | Homebuilding SG&A as a percentage of homebuilding revenues improved 90 basis points to 10.3% |
• | Pre-tax income increased 171% to $657.8 million |
• | Pre-tax income margin increased 490 basis points to 10.5% of revenues |
• | Home sales gross margin increased 310 basis points to 20.8% |
• | Homebuilding SG&A as a percentage of homebuilding revenues improved 180 basis points to 10.7% |
• | Net sales orders increased 19% in homes to 25,120 and 37% in value to $6.6 billion |
• | Homes closed increased 28% in homes to 24,155 and 43% in value to $6.0 billion |
• | Sales order backlog increased 13% in homes to 8,205 and 33% in value to $2.2 billion |
September 30, | |||||||
2013 | 2012 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Homebuilding: | |||||||
Cash and cash equivalents | $ | 913.3 | $ | 1,030.4 | |||
Marketable securities, available-for-sale | — | 298.0 | |||||
Restricted cash | 77.8 | 49.3 | |||||
Inventories: | |||||||
Construction in progress and finished homes | 2,498.0 | 1,682.7 | |||||
Residential land and lots — developed and under development | 3,227.3 | 1,838.4 | |||||
Land held for development | 472.1 | 644.1 | |||||
6,197.4 | 4,165.2 | ||||||
Income taxes receivable | — | 14.4 | |||||
Deferred income taxes, net | 586.6 | 709.5 | |||||
Property and equipment, net | 106.7 | 72.6 | |||||
Other assets | 460.5 | 456.8 | |||||
Goodwill | 38.9 | 38.9 | |||||
8,381.2 | 6,835.1 | ||||||
Financial Services: | |||||||
Cash and cash equivalents | 23.2 | 17.3 | |||||
Mortgage loans held for sale | 395.1 | 345.3 | |||||
Other assets | 56.9 | 50.5 | |||||
475.2 | 413.1 | ||||||
Total assets | $ | 8,856.4 | $ | 7,248.2 | |||
LIABILITIES | |||||||
Homebuilding: | |||||||
Accounts payable | $ | 346.4 | $ | 216.2 | |||
Accrued expenses and other liabilities | 886.0 | 893.8 | |||||
Notes payable | 3,270.4 | 2,305.3 | |||||
4,502.8 | 3,415.3 | ||||||
Financial Services: | |||||||
Accounts payable and other liabilities | 53.6 | 50.4 | |||||
Mortgage repurchase facility | 238.6 | 187.8 | |||||
292.2 | 238.2 | ||||||
Total liabilities | 4,795.0 | 3,653.5 | |||||
EQUITY | |||||||
Common stock | 3.3 | 3.3 | |||||
Additional paid-in capital | 2,042.0 | 1,979.8 | |||||
Retained earnings | 2,145.6 | 1,743.1 | |||||
Treasury stock, at cost | (134.3 | ) | (134.3 | ) | |||
Accumulated other comprehensive income | 1.9 | 0.2 | |||||
Total stockholders’ equity | 4,058.5 | 3,592.1 | |||||
Noncontrolling interests | 2.9 | 2.6 | |||||
Total equity | 4,061.4 | 3,594.7 | |||||
Total liabilities and equity | $ | 8,856.4 | $ | 7,248.2 |
Three Months Ended September 30, | Fiscal Year Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In millions, except per share data) | |||||||||||||||
Homebuilding: | |||||||||||||||
Revenues: | |||||||||||||||
Home sales | $ | 1,802.0 | $ | 1,288.3 | $ | 6,024.8 | $ | 4,218.4 | |||||||
Land/lot sales and other | 15.8 | 10.5 | 61.1 | 17.8 | |||||||||||
1,817.8 | 1,298.8 | 6,085.9 | 4,236.2 | ||||||||||||
Cost of sales: | |||||||||||||||
Home sales | 1,407.2 | 1,055.6 | 4,771.5 | 3,472.9 | |||||||||||
Land/lot sales and other | 12.1 | 9.2 | 50.9 | 13.3 | |||||||||||
Inventory and land option charges | 27.1 | 1.5 | 31.1 | 6.2 | |||||||||||
1,446.4 | 1,066.3 | 4,853.5 | 3,492.4 | ||||||||||||
Gross profit: | |||||||||||||||
Home sales | 394.8 | 232.7 | 1,253.3 | 745.5 | |||||||||||
Land/lot sales and other | 3.7 | 1.3 | 10.2 | 4.5 | |||||||||||
Inventory and land option charges | (27.1 | ) | (1.5 | ) | (31.1 | ) | (6.2 | ) | |||||||
371.4 | 232.5 | 1,232.4 | 743.8 | ||||||||||||
Selling, general and administrative expense | 186.6 | 145.9 | 649.9 | 528.7 | |||||||||||
Interest expense | — | 4.9 | 5.1 | 23.6 | |||||||||||
Other (income) | (4.6 | ) | (4.0 | ) | (14.9 | ) | (12.2 | ) | |||||||
Homebuilding pre-tax income | 189.4 | 85.7 | 592.3 | 203.7 | |||||||||||
Financial Services: | |||||||||||||||
Revenues, net of recourse and reinsurance expense | 42.0 | 37.4 | 173.4 | 117.8 | |||||||||||
General and administrative expense | 31.5 | 25.6 | 116.4 | 85.5 | |||||||||||
Interest and other (income) | (2.9 | ) | (1.7 | ) | (8.5 | ) | (6.9 | ) | |||||||
Financial services pre-tax income | 13.4 | 13.5 | 65.5 | 39.2 | |||||||||||
Income before income taxes | 202.8 | 99.2 | 657.8 | 242.9 | |||||||||||
Income tax expense (benefit) | 63.3 | (0.9 | ) | 195.1 | (713.4 | ) | |||||||||
Net income | $ | 139.5 | $ | 100.1 | $ | 462.7 | $ | 956.3 | |||||||
Other comprehensive income (loss), net of income tax: | |||||||||||||||
Unrealized gain (loss) related to available-for-sale securities | — | 0.2 | (0.2 | ) | 0.1 | ||||||||||
Unrealized gain related to debt securities collateralized by residential real estate | — | — | 1.9 | — | |||||||||||
Comprehensive income | $ | 139.5 | $ | 100.3 | $ | 464.4 | $ | 956.4 | |||||||
Basic: | |||||||||||||||
Net income per share | $ | 0.43 | $ | 0.31 | $ | 1.44 | $ | 3.01 | |||||||
Weighted average number of common shares | 322.9 | 319.6 | 322.1 | 318.1 | |||||||||||
Diluted: | |||||||||||||||
Net income per share | $ | 0.40 | $ | 0.30 | $ | 1.33 | $ | 2.77 | |||||||
Numerator for diluted net income per share after assumed conversions | $ | 145.9 | $ | 109.8 | $ | 486.6 | $ | 993.1 | |||||||
Adjusted weighted average number of common shares | 364.4 | 362.8 | 364.9 | 359.0 | |||||||||||
Other Consolidated Financial Data: | |||||||||||||||
Interest amortized to home and land/lot cost of sales | $ | 29.1 | $ | 27.6 | $ | 110.2 | $ | 94.0 | |||||||
Depreciation and amortization | $ | 6.7 | $ | 4.4 | $ | 22.7 | $ | 18.8 | |||||||
Interest incurred | $ | 47.3 | $ | 34.5 | $ | 172.8 | $ | 124.1 |
Fiscal Year Ended September 30, | |||||||
2013 | 2012 | ||||||
(In millions) | |||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 462.7 | $ | 956.3 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Depreciation and amortization | 22.7 | 18.8 | |||||
Amortization of discounts and fees | 39.7 | 40.4 | |||||
Stock based compensation expense | 19.0 | 18.1 | |||||
Income tax benefit from employee stock awards | (6.7 | ) | — | ||||
Deferred income taxes | 130.9 | (709.5 | ) | ||||
Gain on early retirement of debt, net | — | (0.1 | ) | ||||
Gain on sale of marketable securities | (0.2 | ) | (0.2 | ) | |||
Inventory and land option charges | 31.1 | 6.2 | |||||
Changes in operating assets and liabilities: | |||||||
Increase in construction in progress and finished homes | (815.3 | ) | (275.4 | ) | |||
Increase in residential land and lots – developed, under development, and held for development | (1,235.6 | ) | (371.0 | ) | |||
Decrease (increase) in other assets | 16.5 | (37.4 | ) | ||||
Decrease (increase) in income taxes receivable | 14.4 | (2.0 | ) | ||||
Increase in mortgage loans held for sale | (49.8 | ) | (51.2 | ) | |||
Increase in accounts payable, accrued expenses and other liabilities | 139.5 | 113.6 | |||||
Net cash used in operating activities | (1,231.1 | ) | (293.4 | ) | |||
INVESTING ACTIVITIES | |||||||
Purchases of property and equipment | (58.0 | ) | (33.6 | ) | |||
Purchases of marketable securities | (28.9 | ) | (240.8 | ) | |||
Proceeds from the sale or maturity of marketable securities | 325.4 | 232.8 | |||||
Increase in restricted cash | (28.5 | ) | (0.2 | ) | |||
Net principal increase of other mortgage loans and real estate owned | (2.5 | ) | (4.7 | ) | |||
Purchase of debt securities collateralized by residential real estate | (18.6 | ) | — | ||||
Principal payments received on debt securities collateralized by residential real estate | 1.4 | — | |||||
Payments related to acquisition of a business | (9.4 | ) | (96.5 | ) | |||
Net cash provided by (used in) investing activities | 180.9 | (143.0 | ) | ||||
FINANCING ACTIVITIES | |||||||
Proceeds from notes payable | 1,307.9 | 765.9 | |||||
Repayment of notes payable | (345.1 | ) | (17.5 | ) | |||
Proceeds from stock associated with certain employee benefit plans | 29.7 | 50.9 | |||||
Income tax benefit from employee stock awards | 6.7 | — | |||||
Cash dividends paid | (60.2 | ) | (47.8 | ) | |||
Net cash provided by financing activities | 939.0 | 751.5 | |||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (111.2 | ) | 315.1 | ||||
Cash and cash equivalents at beginning of year | 1,047.7 | 732.6 | |||||
Cash and cash equivalents at end of year | $ | 936.5 | $ | 1,047.7 |
NET SALES ORDERS | ||||||||||||||||||||||||
Three Months Ended September 30, | Fiscal Year Ended September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Homes | Value | Homes | Value | Homes | Value | Homes | Value | |||||||||||||||||
East | 562 | $ | 162.2 | 558 | $ | 144.3 | 2,624 | $ | 723.6 | 2,244 | $ | 565.3 | ||||||||||||
Midwest | 279 | 100.1 | 330 | 99.5 | 1,480 | 503.2 | 1,301 | 386.2 | ||||||||||||||||
Southeast | 1,570 | 395.4 | 1,497 | 315.1 | 7,408 | 1,759.2 | 5,378 | 1,101.9 | ||||||||||||||||
South Central | 1,718 | 369.7 | 1,574 | 308.2 | 8,074 | 1,683.1 | 6,822 | 1,282.3 | ||||||||||||||||
Southwest | 227 | 52.9 | 371 | 77.6 | 1,381 | 288.9 | 1,715 | 327.7 | ||||||||||||||||
West | 804 | 347.8 | 946 | 309.9 | 4,153 | 1,609.0 | 3,588 | 1,139.9 | ||||||||||||||||
5,160 | $ | 1,428.1 | 5,276 | $ | 1,254.6 | 25,120 | $ | 6,567.0 | 21,048 | $ | 4,803.3 |
HOMES CLOSED | ||||||||||||||||||||||||
Three Months Ended September 30, | Fiscal Year Ended September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Homes | Value | Homes | Value | Homes | Value | Homes | Value | |||||||||||||||||
East | 792 | $ | 218.2 | 572 | $ | 149.4 | 2,505 | $ | 667.8 | 2,187 | $ | 542.4 | ||||||||||||
Midwest | 421 | 141.4 | 396 | 121.4 | 1,449 | 471.3 | 1,164 | 339.3 | ||||||||||||||||
Southeast | 2,002 | 470.4 | 1,369 | 280.6 | 6,807 | 1,520.4 | 4,682 | 930.7 | ||||||||||||||||
South Central | 2,112 | 437.1 | 1,736 | 325.2 | 7,609 | 1,520.8 | 6,300 | 1,158.4 | ||||||||||||||||
Southwest | 426 | 86.7 | 464 | 88.5 | 1,605 | 327.7 | 1,442 | 269.4 | ||||||||||||||||
West | 1,113 | 448.2 | 1,038 | 323.2 | 4,180 | 1,516.8 | 3,115 | 978.2 | ||||||||||||||||
6,866 | $ | 1,802.0 | 5,575 | $ | 1,288.3 | 24,155 | $ | 6,024.8 | 18,890 | $ | 4,218.4 |
SALES ORDER BACKLOG | ||||||||||||
As of September 30, | ||||||||||||
2013 | 2012 | |||||||||||
Homes | Value | Homes | Value | |||||||||
East | 782 | $ | 226.3 | 663 | $ | 170.5 | ||||||
Midwest | 456 | 159.4 | 425 | 127.4 | ||||||||
Southeast | 2,810 | 703.7 | 2,209 | 465.0 | ||||||||
South Central | 2,697 | 595.8 | 2,232 | 433.5 | ||||||||
Southwest | 475 | 96.1 | 699 | 134.9 | ||||||||
West | 985 | 428.8 | 1,012 | 336.6 | ||||||||
8,205 | $ | 2,210.1 | 7,240 | $ | 1,667.9 |