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 January 28, 2014 related to the Company’s results and related information for the first quarter ended December 31, 2013 and declaring its quarterly dividend. |
D.R. Horton, Inc. | ||||
Date: | January 28, 2014 | By: | /S/ BILL W. WHEAT | |
Bill W. Wheat | ||||
Executive Vice President and | ||||
Chief Financial Officer |
Exhibit Number | Description | |
99.1 | Press Release dated January 28, 2014 |
• | Net income increased 86% to $123.2 million |
• | Diluted EPS increased 80% to $0.36 per share |
• | Pre-tax income increased 76% to $189.7 million |
• | Pre-tax income margin increased 290 basis points to 11.4% of revenues |
• | Home sales gross margin increased 350 basis points to 22.3% |
• | Net sales orders increased 14% in value to $1.5 billion and 4% in homes to 5,454 |
• | Homes closed increased 33% in value to $1.6 billion and 19% in homes to 6,188 |
• | Sales order backlog increased 20% in value to $2.1 billion and 5% in homes to 7,684 |
December 31, 2013 | September 30, 2013 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Homebuilding: | |||||||
Cash and cash equivalents | $ | 801.1 | $ | 913.3 | |||
Restricted cash | 81.1 | 77.8 | |||||
Inventories: | |||||||
Construction in progress and finished homes | 2,721.8 | 2,498.0 | |||||
Residential land and lots — developed and under development | 3,300.5 | 3,227.3 | |||||
Land held for development | 473.8 | 472.1 | |||||
6,496.1 | 6,197.4 | ||||||
Deferred income taxes, net of valuation allowance of $31.1 million and $31.0 million at December 31, 2013 and September 30, 2013, respectively | 578.5 | 586.6 | |||||
Property and equipment, net | 117.5 | 106.7 | |||||
Other assets | 441.1 | 460.5 | |||||
Goodwill | 41.2 | 38.9 | |||||
8,556.6 | 8,381.2 | ||||||
Financial Services: | |||||||
Cash and cash equivalents | 19.0 | 23.2 | |||||
Mortgage loans held for sale | 299.8 | 395.1 | |||||
Other assets | 51.8 | 56.9 | |||||
370.6 | 475.2 | ||||||
Total assets | $ | 8,927.2 | $ | 8,856.4 | |||
LIABILITIES | |||||||
Homebuilding: | |||||||
Accounts payable | $ | 342.1 | $ | 346.4 | |||
Accrued expenses and other liabilities | 884.3 | 886.0 | |||||
Notes payable | 3,276.1 | 3,270.4 | |||||
4,502.5 | 4,502.8 | ||||||
Financial Services: | |||||||
Accounts payable and other liabilities | 39.0 | 53.6 | |||||
Mortgage repurchase facility | 185.8 | 238.6 | |||||
224.8 | 292.2 | ||||||
Total liabilities | 4,727.3 | 4,795.0 | |||||
EQUITY | |||||||
Common stock | 3.3 | 3.3 | |||||
Additional paid-in capital | 2,057.2 | 2,042.0 | |||||
Retained earnings | 2,268.7 | 2,145.6 | |||||
Treasury stock, at cost | (134.3 | ) | (134.3 | ) | |||
Accumulated other comprehensive income | 1.9 | 1.9 | |||||
Total stockholders’ equity | 4,196.8 | 4,058.5 | |||||
Noncontrolling interests | 3.1 | 2.9 | |||||
Total equity | 4,199.9 | 4,061.4 | |||||
Total liabilities and equity | $ | 8,927.2 | $ | 8,856.4 |
Three Months Ended December 31, | |||||||
2013 | 2012 | ||||||
(In millions, except per share data) | |||||||
Homebuilding: | |||||||
Revenues: | |||||||
Home sales | $ | 1,630.8 | $ | 1,223.3 | |||
Land/lot sales and other | 4.8 | 9.9 | |||||
1,635.6 | 1,233.2 | ||||||
Cost of sales: | |||||||
Home sales | 1,266.7 | 992.8 | |||||
Land/lot sales and other | 4.3 | 8.2 | |||||
Inventory and land option charges | 2.6 | 1.3 | |||||
1,273.6 | 1,002.3 | ||||||
Gross profit: | |||||||
Home sales | 364.1 | 230.5 | |||||
Land/lot sales and other | 0.5 | 1.7 | |||||
Inventory and land option charges | (2.6 | ) | (1.3 | ) | |||
362.0 | 230.9 | ||||||
Selling, general and administrative expense | 183.4 | 140.8 | |||||
Interest expense | — | 3.2 | |||||
Other (income) | (3.3 | ) | (3.3 | ) | |||
Homebuilding pre-tax income | 181.9 | 90.2 | |||||
Financial Services: | |||||||
Revenues, net of recourse and reinsurance expense | 35.0 | 41.9 | |||||
General and administrative expense | 29.8 | 25.7 | |||||
Interest and other (income) | (2.6 | ) | (1.5 | ) | |||
Financial services pre-tax income | 7.8 | 17.7 | |||||
Income before income taxes | 189.7 | 107.9 | |||||
Income tax expense | 66.5 | 41.6 | |||||
Net income | $ | 123.2 | $ | 66.3 | |||
Other comprehensive income (loss), net of income tax: | |||||||
Unrealized loss related to available-for-sale securities | — | (0.1 | ) | ||||
Comprehensive income | $ | 123.2 | $ | 66.2 | |||
Basic: | |||||||
Net income per share | $ | 0.38 | $ | 0.21 | |||
Weighted average number of common shares | 323.1 | 321.1 | |||||
Diluted: | |||||||
Net income per share | $ | 0.36 | $ | 0.20 | |||
Numerator for diluted income per share after assumed conversions | $ | 130.0 | $ | 72.0 | |||
Adjusted weighted average number of common shares | 364.4 | 364.1 | |||||
Other Consolidated Financial Data: | |||||||
Interest amortized to home and land/lot cost of sales | $ | 25.3 | $ | 24.9 | |||
Depreciation and amortization | $ | 7.8 | $ | 4.8 | |||
Interest incurred | $ | 49.3 | $ | 38.1 |
Three Months Ended | |||
December 31, 2013 | |||
(In millions) | |||
OPERATING ACTIVITIES | |||
Net income | $ | 123.2 | |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Depreciation and amortization | 7.8 | ||
Amortization of discounts and fees | 10.3 | ||
Stock based compensation expense | 5.4 | ||
Income tax benefit from employee stock awards | (0.9 | ) | |
Deferred income taxes | 8.1 | ||
Inventory and land option charges | 2.6 | ||
Changes in operating assets and liabilities: | |||
Increase in construction in progress and finished homes | (194.0 | ) | |
Increase in residential land and lots – developed, under development, and held for development | (77.3 | ) | |
Decrease in other assets | 26.1 | ||
Decrease in mortgage loans held for sale | 95.3 | ||
Decrease in accounts payable, accrued expenses and other liabilities | (14.1 | ) | |
Net cash used in operating activities | (7.5 | ) | |
INVESTING ACTIVITIES | |||
Purchases of property and equipment | (18.3 | ) | |
Increase in restricted cash | (3.3 | ) | |
Net principal increase of other mortgage loans and real estate owned | (1.2 | ) | |
Payments related to acquisition of a business | (34.5 | ) | |
Net cash used in investing activities | (57.3 | ) | |
FINANCING ACTIVITIES | |||
Repayment of notes payable | (55.8 | ) | |
Proceeds from stock associated with certain employee benefit plans | 3.3 | ||
Income tax benefit from employee stock awards | 0.9 | ||
Net cash used in financing activities | (51.6 | ) | |
DECREASE IN CASH AND CASH EQUIVALENTS | (116.4 | ) | |
Cash and cash equivalents at beginning of period | 936.5 | ||
Cash and cash equivalents at end of period | $ | 820.1 |
NET SALES ORDERS | ||||||||||||
Three Months Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Homes | Value | Homes | Value | |||||||||
East | 676 | $ | 191.5 | 528 | $ | 141.4 | ||||||
Midwest | 223 | 86.0 | 275 | 89.9 | ||||||||
Southeast | 1,614 | 409.3 | 1,584 | 353.5 | ||||||||
South Central | 1,879 | 414.2 | 1,641 | 330.6 | ||||||||
Southwest | 230 | 49.7 | 247 | 53.2 | ||||||||
West | 832 | 352.4 | 984 | 345.5 | ||||||||
5,454 | $ | 1,503.1 | 5,259 | $ | 1,314.1 |
HOMES CLOSED | ||||||||||||
Three Months Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Homes | Value | Homes | Value | |||||||||
East | 742 | $ | 190.1 | 517 | $ | 137.4 | ||||||
Midwest | 298 | 105.8 | 287 | 89.4 | ||||||||
Southeast | 1,846 | 447.3 | 1,374 | 291.3 | ||||||||
South Central | 2,006 | 420.6 | 1,619 | 309.3 | ||||||||
Southwest | 339 | 70.6 | 383 | 76.0 | ||||||||
West | 957 | 396.4 | 1,002 | 319.9 | ||||||||
6,188 | $ | 1,630.8 | 5,182 | $ | 1,223.3 |
SALES ORDER BACKLOG | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Homes | Value | Homes | Value | |||||||||
East | 929 | $ | 258.9 | 674 | $ | 174.6 | ||||||
Midwest | 381 | 139.6 | 413 | 127.9 | ||||||||
Southeast | 2,578 | 665.7 | 2,419 | 527.1 | ||||||||
South Central | 2,570 | 589.4 | 2,254 | 454.8 | ||||||||
Southwest | 366 | 75.1 | 563 | 112.1 | ||||||||
West | 860 | 384.8 | 994 | 362.2 | ||||||||
7,684 | $ | 2,113.5 | 7,317 | $ | 1,758.7 |