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 April 24, 2014 related to the Company’s results and related information for the second quarter ended March 31, 2014 and declaring its quarterly dividend. |
D.R. Horton, Inc. | ||||
Date: | April 24, 2014 | By: | /S/ BILL W. WHEAT | |
Bill W. Wheat | ||||
Executive Vice President and | ||||
Chief Financial Officer |
Exhibit Number | Description | |
99.1 | Press Release dated April 24, 2014 |
• | Net income increased 18% to $131.0 million |
• | Diluted EPS increased 19% to $0.38 per share |
• | Pre-tax income increased 42% to $201.9 million |
• | Pre-tax income margin increased 170 basis points to 11.6% of consolidated revenues |
• | Home sales gross margin increased 210 basis points to 22.5% |
• | Net sales orders increased 20% in value to $2.4 billion and 9% in homes to 8,569 |
• | Homes closed increased 23% in value to $1.7 billion and 10% in homes to 6,194 |
• | Sales order backlog increased 18% in value to $2.8 billion and 5% in homes to 10,059 |
March 31, 2014 | September 30, 2013 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Homebuilding: | |||||||
Cash and cash equivalents | $ | 930.8 | $ | 913.3 | |||
Restricted cash | 79.8 | 77.8 | |||||
Inventories: | |||||||
Construction in progress and finished homes | 2,864.2 | 2,498.0 | |||||
Residential land and lots — developed and under development | 3,451.9 | 3,227.3 | |||||
Land held for development | 467.5 | 472.1 | |||||
6,783.6 | 6,197.4 | ||||||
Deferred income taxes, net of valuation allowance of $31.3 million and $31.0 million at March 31, 2014 and September 30, 2013, respectively | 569.8 | 586.6 | |||||
Property and equipment, net | 123.3 | 106.7 | |||||
Other assets | 427.8 | 460.5 | |||||
Goodwill | 41.2 | 38.9 | |||||
8,956.3 | 8,381.2 | ||||||
Financial Services: | |||||||
Cash and cash equivalents | 20.6 | 23.2 | |||||
Mortgage loans held for sale | 342.5 | 395.1 | |||||
Other assets | 53.4 | 56.9 | |||||
416.5 | 475.2 | ||||||
Total assets | $ | 9,372.8 | $ | 8,856.4 | |||
LIABILITIES | |||||||
Homebuilding: | |||||||
Accounts payable | $ | 298.9 | $ | 346.4 | |||
Accrued expenses and other liabilities | 822.6 | 886.0 | |||||
Notes payable | 3,638.3 | 3,270.4 | |||||
4,759.8 | 4,502.8 | ||||||
Financial Services: | |||||||
Accounts payable and other liabilities | 39.6 | 53.6 | |||||
Mortgage repurchase facility | 223.8 | 238.6 | |||||
263.4 | 292.2 | ||||||
Total liabilities | 5,023.2 | 4,795.0 | |||||
EQUITY | |||||||
Common stock | 3.3 | 3.3 | |||||
Additional paid-in capital | 2,087.5 | 2,042.0 | |||||
Retained earnings | 2,387.6 | 2,145.6 | |||||
Treasury stock, at cost | (134.3 | ) | (134.3 | ) | |||
Accumulated other comprehensive income | 2.2 | 1.9 | |||||
Total stockholders’ equity | 4,346.3 | 4,058.5 | |||||
Noncontrolling interests | 3.3 | 2.9 | |||||
Total equity | 4,349.6 | 4,061.4 | |||||
Total liabilities and equity | $ | 9,372.8 | $ | 8,856.4 |
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(In millions, except per share data) | |||||||||||||||
Homebuilding: | |||||||||||||||
Revenues: | |||||||||||||||
Home sales | $ | 1,680.0 | $ | 1,368.7 | $ | 3,310.8 | $ | 2,592.0 | |||||||
Land/lot sales and other | 16.6 | 21.7 | 21.5 | 31.5 | |||||||||||
1,696.6 | 1,390.4 | 3,332.3 | 2,623.5 | ||||||||||||
Cost of sales: | |||||||||||||||
Home sales | 1,302.8 | 1,089.9 | 2,569.5 | 2,082.7 | |||||||||||
Land/lot sales and other | 12.6 | 17.5 | 16.9 | 25.6 | |||||||||||
Inventory and land option charges | 4.4 | 1.8 | 7.1 | 3.2 | |||||||||||
1,319.8 | 1,109.2 | 2,593.5 | 2,111.5 | ||||||||||||
Gross profit: | |||||||||||||||
Home sales | 377.2 | 278.8 | 741.3 | 509.3 | |||||||||||
Land/lot sales and other | 4.0 | 4.2 | 4.6 | 5.9 | |||||||||||
Inventory and land option charges | (4.4 | ) | (1.8 | ) | (7.1 | ) | (3.2 | ) | |||||||
376.8 | 281.2 | 738.8 | 512.0 | ||||||||||||
Selling, general and administrative expense | 187.9 | 155.1 | 371.3 | 295.8 | |||||||||||
Interest expense | — | 1.9 | — | 5.1 | |||||||||||
Other (income) | (2.8 | ) | (3.2 | ) | (6.1 | ) | (6.5 | ) | |||||||
Homebuilding pre-tax income | 191.7 | 127.4 | 373.6 | 217.6 | |||||||||||
Financial Services: | |||||||||||||||
Revenues, net of recourse and reinsurance expense | 38.4 | 41.2 | 73.3 | 83.0 | |||||||||||
General and administrative expense | 30.2 | 28.0 | 60.0 | 53.6 | |||||||||||
Interest and other (income) | (2.0 | ) | (1.5 | ) | (4.7 | ) | (3.0 | ) | |||||||
Financial services pre-tax income | 10.2 | 14.7 | 18.0 | 32.4 | |||||||||||
Income before income taxes | 201.9 | 142.1 | 391.6 | 250.0 | |||||||||||
Income tax expense | 70.9 | 31.1 | 137.5 | 72.7 | |||||||||||
Net income | $ | 131.0 | $ | 111.0 | $ | 254.1 | $ | 177.3 | |||||||
Other comprehensive income (loss), net of income tax | 0.3 | — | 0.3 | (0.2 | ) | ||||||||||
Comprehensive income | $ | 131.3 | $ | 111.0 | $ | 254.4 | $ | 177.1 | |||||||
Basic: | |||||||||||||||
Net income per share | $ | 0.40 | $ | 0.35 | $ | 0.79 | $ | 0.55 | |||||||
Weighted average number of common shares | 324.3 | 321.7 | 323.7 | 321.4 | |||||||||||
Diluted: | |||||||||||||||
Net income per share | $ | 0.38 | $ | 0.32 | $ | 0.73 | $ | 0.52 | |||||||
Numerator for diluted income per share after assumed conversions | $ | 137.9 | $ | 116.8 | $ | 267.8 | $ | 188.8 | |||||||
Adjusted weighted average number of common shares | 366.3 | 365.4 | 365.4 | 364.7 | |||||||||||
Other Consolidated Financial Data: | |||||||||||||||
Interest amortized to home and land/lot cost of sales | $ | 26.9 | $ | 27.6 | $ | 52.2 | $ | 52.5 | |||||||
Depreciation and amortization | $ | 8.9 | $ | 5.3 | $ | 16.7 | $ | 10.1 | |||||||
Interest incurred | $ | 49.5 | $ | 43.1 | $ | 98.8 | $ | 81.1 |
Six Months Ended | |||
March 31, 2014 | |||
(In millions) | |||
OPERATING ACTIVITIES | |||
Net income | $ | 254.1 | |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Depreciation and amortization | 16.7 | ||
Amortization of discounts and fees | 20.8 | ||
Stock based compensation expense | 10.8 | ||
Excess income tax benefit from employee stock awards | (1.9 | ) | |
Deferred income taxes | 16.7 | ||
Inventory and land option charges | 7.1 | ||
Changes in operating assets and liabilities: | |||
Increase in construction in progress and finished homes | (336.4 | ) | |
Increase in residential land and lots – developed, under development, and held for development | (226.8 | ) | |
Decrease in other assets | 39.1 | ||
Decrease in mortgage loans held for sale | 52.6 | ||
Decrease in accounts payable, accrued expenses and other liabilities | (119.7 | ) | |
Net cash used in operating activities | (266.9 | ) | |
INVESTING ACTIVITIES | |||
Purchases of property and equipment | (32.8 | ) | |
Increase in restricted cash | (2.0 | ) | |
Net principal increase of other mortgage loans and real estate owned | (1.7 | ) | |
Payments related to acquisition of a business | (34.5 | ) | |
Net cash used in investing activities | (71.0 | ) | |
FINANCING ACTIVITIES | |||
Proceeds from notes payable | 497.0 | ||
Repayment of notes payable | (163.6 | ) | |
Proceeds from stock associated with certain employee benefit plans | 29.6 | ||
Excess income tax benefit from employee stock awards | 1.9 | ||
Cash dividends paid | (12.1 | ) | |
Net cash provided by financing activities | 352.8 | ||
INCREASE IN CASH AND CASH EQUIVALENTS | 14.9 | ||
Cash and cash equivalents at beginning of period | 936.5 | ||
Cash and cash equivalents at end of period | $ | 951.4 |
NET SALES ORDERS | ||||||||||||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Homes | Value | Homes | Value | Homes | Value | Homes | Value | |||||||||||||||||
East | 1,056 | $ | 290.5 | 819 | $ | 221.2 | 1,732 | $ | 482.0 | 1,347 | $ | 362.7 | ||||||||||||
Midwest | 424 | 152.3 | 454 | 151.6 | 647 | 238.4 | 729 | 241.5 | ||||||||||||||||
Southeast | 2,365 | 592.1 | 2,325 | 542.4 | 3,979 | 1,001.4 | 3,909 | 895.9 | ||||||||||||||||
South Central | 2,857 | 626.5 | 2,534 | 514.1 | 4,736 | 1,040.7 | 4,175 | 844.7 | ||||||||||||||||
Southwest | 443 | 95.7 | 479 | 95.1 | 673 | 145.4 | 726 | 148.3 | ||||||||||||||||
West | 1,424 | 632.9 | 1,268 | 471.8 | 2,256 | 985.2 | 2,252 | 817.2 | ||||||||||||||||
8,569 | $ | 2,390.0 | 7,879 | $ | 1,996.2 | 14,023 | $ | 3,893.1 | 13,138 | $ | 3,310.3 |
HOMES CLOSED | ||||||||||||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Homes | Value | Homes | Value | Homes | Value | Homes | Value | |||||||||||||||||
East | 763 | $ | 203.2 | 574 | $ | 149.0 | 1,505 | $ | 393.3 | 1,091 | $ | 286.4 | ||||||||||||
Midwest | 284 | 99.9 | 299 | 92.8 | 582 | 205.7 | 586 | 182.2 | ||||||||||||||||
Southeast | 1,891 | 464.8 | 1,545 | 333.1 | 3,737 | 912.1 | 2,919 | 624.5 | ||||||||||||||||
South Central | 1,948 | 421.9 | 1,831 | 359.9 | 3,954 | 842.4 | 3,450 | 669.2 | ||||||||||||||||
Southwest | 305 | 63.1 | 381 | 79.0 | 644 | 133.8 | 764 | 154.9 | ||||||||||||||||
West | 1,003 | 427.1 | 1,013 | 354.9 | 1,960 | 823.5 | 2,015 | 674.8 | ||||||||||||||||
6,194 | $ | 1,680.0 | 5,643 | $ | 1,368.7 | 12,382 | $ | 3,310.8 | 10,825 | $ | 2,592.0 |
SALES ORDER BACKLOG | ||||||||||||
As of March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Homes | Value | Homes | Value | |||||||||
East | 1,222 | $ | 346.2 | 919 | $ | 246.8 | ||||||
Midwest | 521 | 192.0 | 568 | 186.7 | ||||||||
Southeast | 3,052 | 793.0 | 3,199 | 736.3 | ||||||||
South Central | 3,479 | 794.0 | 2,957 | 609.0 | ||||||||
Southwest | 504 | 107.8 | 661 | 128.3 | ||||||||
West | 1,281 | 590.5 | 1,249 | 479.1 | ||||||||
10,059 | $ | 2,823.5 | 9,553 | $ | 2,386.2 |