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 22, 2015 related to the Company’s results and related information for the second quarter ended March 31, 2015 and declaring its quarterly dividend. |
D.R. Horton, Inc. | ||||
Date: | April 22, 2015 | By: | /S/ BILL W. WHEAT | |
Bill W. Wheat | ||||
Executive Vice President and | ||||
Chief Financial Officer |
Exhibit Number | Description | |
99.1 | Press Release dated April 22, 2015 |
• | Net sales orders increased 33% in value to $3.2 billion and 30% in homes to 11,135 |
• | Homes closed increased 38% in value to $2.3 billion and 33% in homes to 8,243 |
• | Sales order backlog increased 27% in value to $3.6 billion and 21% in homes to 12,177 |
• | Pre-tax income increased 14% to $230.1 million |
• | Net income increased 13% to $147.9 million, or $0.40 per diluted share |
March 31, 2015 | September 30, 2014 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Homebuilding: | |||||||
Cash and cash equivalents | $ | 665.8 | $ | 632.5 | |||
Restricted cash | 10.4 | 10.0 | |||||
Inventories: | |||||||
Construction in progress and finished homes | 3,915.8 | 3,541.3 | |||||
Residential land and lots — developed and under development | 3,928.3 | 3,800.0 | |||||
Land held for development | 271.3 | 332.8 | |||||
Land held for sale | 21.5 | 26.4 | |||||
8,136.9 | 7,700.5 | ||||||
Deferred income taxes, net of valuation allowance of $30.9 million and $31.1 million at March 31, 2015 and September 30, 2014, respectively | 547.7 | 565.0 | |||||
Property and equipment, net | 193.8 | 190.8 | |||||
Other assets | 442.4 | 441.1 | |||||
Goodwill | 94.8 | 94.8 | |||||
10,091.8 | 9,634.7 | ||||||
Financial Services: | |||||||
Cash and cash equivalents | 31.9 | 29.3 | |||||
Mortgage loans held for sale | 517.6 | 476.9 | |||||
Other assets | 71.8 | 61.6 | |||||
621.3 | 567.8 | ||||||
Total assets | $ | 10,713.1 | $ | 10,202.5 | |||
LIABILITIES | |||||||
Homebuilding: | |||||||
Accounts payable | $ | 451.9 | $ | 480.3 | |||
Accrued expenses and other liabilities | 847.7 | 875.0 | |||||
Notes payable | 3,548.0 | 3,323.6 | |||||
4,847.6 | 4,678.9 | ||||||
Financial Services: | |||||||
Accounts payable and other liabilities | 47.0 | 44.7 | |||||
Mortgage repurchase facility | 397.5 | 359.2 | |||||
444.5 | 403.9 | ||||||
Total liabilities | 5,292.1 | 5,082.8 | |||||
EQUITY | |||||||
Common stock, $.01 par value, 1,000,000,000 shares authorized, 373,741,449 shares issued and 366,541,378 shares outstanding at March 31, 2015 and 371,786,765 shares issued and 364,586,694 shares outstanding at September 30, 2014 | 3.7 | 3.7 | |||||
Additional paid-in capital | 2,671.3 | 2,613.7 | |||||
Retained earnings | 2,875.2 | 2,630.5 | |||||
Treasury stock, 7,200,071 shares at March 31, 2015 and September 30, 2014, at cost | (134.3 | ) | (134.3 | ) | |||
Accumulated other comprehensive income | 2.2 | 2.2 | |||||
Total stockholders’ equity | 5,418.1 | 5,115.8 | |||||
Noncontrolling interests | 2.9 | 3.9 | |||||
Total equity | 5,421.0 | 5,119.7 | |||||
Total liabilities and equity | $ | 10,713.1 | $ | 10,202.5 |
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(In millions, except per share data) | |||||||||||||||
Homebuilding: | |||||||||||||||
Revenues: | |||||||||||||||
Home sales | $ | 2,318.8 | $ | 1,680.0 | $ | 4,559.4 | $ | 3,310.8 | |||||||
Land/lot sales and other | 19.7 | 16.6 | 32.1 | 21.5 | |||||||||||
2,338.5 | 1,696.6 | 4,591.5 | 3,332.3 | ||||||||||||
Cost of sales: | |||||||||||||||
Home sales | 1,861.9 | 1,302.8 | 3,659.9 | 2,569.5 | |||||||||||
Land/lot sales and other | 17.6 | 12.6 | 28.0 | 16.9 | |||||||||||
Inventory and land option charges | 12.5 | 4.4 | 18.6 | 7.1 | |||||||||||
1,892.0 | 1,319.8 | 3,706.5 | 2,593.5 | ||||||||||||
Gross profit: | |||||||||||||||
Home sales | 456.9 | 377.2 | 899.5 | 741.3 | |||||||||||
Land/lot sales and other | 2.1 | 4.0 | 4.1 | 4.6 | |||||||||||
Inventory and land option charges | (12.5 | ) | (4.4 | ) | (18.6 | ) | (7.1 | ) | |||||||
446.5 | 376.8 | 885.0 | 738.8 | ||||||||||||
Selling, general and administrative expense | 242.4 | 187.9 | 480.4 | 371.3 | |||||||||||
Other (income) | (4.5 | ) | (2.8 | ) | (10.1 | ) | (6.1 | ) | |||||||
Homebuilding pre-tax income | 208.6 | 191.7 | 414.7 | 373.6 | |||||||||||
Financial Services: | |||||||||||||||
Revenues, net of recourse expense | 59.5 | 38.4 | 109.2 | 73.3 | |||||||||||
General and administrative expense | 40.7 | 30.2 | 78.6 | 60.0 | |||||||||||
Interest and other (income) | (2.7 | ) | (2.0 | ) | (5.5 | ) | (4.7 | ) | |||||||
Financial services pre-tax income | 21.5 | 10.2 | 36.1 | 18.0 | |||||||||||
Income before income taxes | 230.1 | 201.9 | 450.8 | 391.6 | |||||||||||
Income tax expense | 82.2 | 70.9 | 160.4 | 137.5 | |||||||||||
Net income | $ | 147.9 | $ | 131.0 | $ | 290.4 | $ | 254.1 | |||||||
Basic: | |||||||||||||||
Net income per share | $ | 0.40 | $ | 0.40 | $ | 0.79 | $ | 0.79 | |||||||
Weighted average number of common shares | 365.8 | 324.3 | 365.4 | 323.7 | |||||||||||
Diluted: | |||||||||||||||
Net income per share | $ | 0.40 | $ | 0.38 | $ | 0.79 | $ | 0.73 | |||||||
Numerator for diluted income per share after assumed conversions | $ | 147.9 | $ | 137.9 | $ | 290.4 | $ | 267.8 | |||||||
Adjusted weighted average number of common shares | 369.4 | 366.3 | 368.8 | 365.4 | |||||||||||
Other Consolidated Financial Data: | |||||||||||||||
Interest charged to cost of sales | $ | 35.6 | $ | 26.9 | $ | 69.2 | $ | 52.2 | |||||||
Depreciation and amortization | $ | 13.1 | $ | 8.9 | $ | 25.4 | $ | 16.7 | |||||||
Interest incurred | $ | 42.6 | $ | 49.5 | $ | 83.0 | $ | 98.8 |
Six Months Ended March 31, | |||||||
2015 | 2014 | ||||||
(In millions) | |||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 290.4 | $ | 254.1 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Depreciation and amortization | 25.4 | 16.7 | |||||
Amortization of discounts and fees | 2.7 | 20.8 | |||||
Stock based compensation expense | 22.4 | 10.8 | |||||
Excess income tax benefit from employee stock awards | (6.7 | ) | (1.9 | ) | |||
Deferred income taxes | 17.4 | 16.7 | |||||
Inventory and land option charges | 18.6 | 7.1 | |||||
Changes in operating assets and liabilities: | |||||||
Increase in construction in progress and finished homes | (375.6 | ) | (336.4 | ) | |||
Increase in residential land and lots – developed, under development, held for development and held for sale | (71.2 | ) | (226.8 | ) | |||
(Increase) decrease in other assets | (11.1 | ) | 40.2 | ||||
(Increase) decrease in mortgage loans held for sale | (40.7 | ) | 52.6 | ||||
Decrease in accounts payable, accrued expenses and other liabilities | (40.4 | ) | (119.7 | ) | |||
Net cash used in operating activities | (168.8 | ) | (265.8 | ) | |||
INVESTING ACTIVITIES | |||||||
Purchases of property and equipment | (24.0 | ) | (32.8 | ) | |||
Increase in restricted cash | (0.4 | ) | (2.0 | ) | |||
Net principal increase of other mortgage loans and real estate owned | (4.9 | ) | (1.7 | ) | |||
Payments related to acquisition of a business | — | (34.5 | ) | ||||
Net cash used in investing activities | (29.3 | ) | (71.0 | ) | |||
FINANCING ACTIVITIES | |||||||
Proceeds from notes payable | 1,350.3 | 497.0 | |||||
Repayment of notes payable | (1,098.3 | ) | (163.6 | ) | |||
Proceeds from stock associated with certain employee benefit plans | 21.0 | 29.6 | |||||
Excess income tax benefit from employee stock awards | 6.7 | 1.9 | |||||
Cash dividends paid | (45.7 | ) | (12.1 | ) | |||
Net cash provided by financing activities | 234.0 | 352.8 | |||||
INCREASE IN CASH AND CASH EQUIVALENTS | 35.9 | 16.0 | |||||
Cash and cash equivalents at beginning of period | 661.8 | 977.4 | |||||
Cash and cash equivalents at end of period | $ | 697.7 | $ | 993.4 |
NET SALES ORDERS | ||||||||||||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
Homes | Value | Homes | Value | Homes | Value | Homes | Value | |||||||||||||||||
East | 1,481 | $ | 394.7 | 1,056 | $ | 290.5 | 2,451 | $ | 654.8 | 1,732 | $ | 482.0 | ||||||||||||
Midwest | 571 | 218.0 | 424 | 152.3 | 911 | 341.3 | 647 | 238.4 | ||||||||||||||||
Southeast | 3,216 | 835.2 | 2,365 | 592.1 | 5,443 | 1,404.1 | 3,979 | 1,001.4 | ||||||||||||||||
South Central | 3,812 | 904.0 | 2,857 | 626.5 | 6,178 | 1,472.8 | 4,736 | 1,040.7 | ||||||||||||||||
Southwest | 447 | 99.3 | 443 | 95.7 | 757 | 168.8 | 673 | 145.4 | ||||||||||||||||
West | 1,608 | 715.6 | 1,424 | 632.9 | 2,765 | 1,233.2 | 2,256 | 985.2 | ||||||||||||||||
11,135 | $ | 3,166.8 | 8,569 | $ | 2,390.0 | 18,505 | $ | 5,275.0 | 14,023 | $ | 3,893.1 |
HOMES CLOSED | ||||||||||||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
Homes | Value | Homes | Value | Homes | Value | Homes | Value | |||||||||||||||||
East | 1,018 | $ | 278.8 | 763 | $ | 203.2 | 2,106 | $ | 576.7 | 1,505 | $ | 393.3 | ||||||||||||
Midwest | 402 | 145.0 | 284 | 99.9 | 767 | 274.7 | 582 | 205.7 | ||||||||||||||||
Southeast | 2,518 | 644.8 | 1,891 | 464.8 | 4,898 | 1,260.4 | 3,737 | 912.1 | ||||||||||||||||
South Central | 2,709 | 619.8 | 1,948 | 421.9 | 5,264 | 1,192.5 | 3,954 | 842.4 | ||||||||||||||||
Southwest | 313 | 70.9 | 305 | 63.1 | 643 | 146.3 | 644 | 133.8 | ||||||||||||||||
West | 1,283 | 559.5 | 1,003 | 427.1 | 2,538 | 1,108.8 | 1,960 | 823.5 | ||||||||||||||||
8,243 | $ | 2,318.8 | 6,194 | $ | 1,680.0 | 16,216 | $ | 4,559.4 | 12,382 | $ | 3,310.8 |
SALES ORDER BACKLOG | ||||||||||||
As of March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Homes | Value | Homes | Value | |||||||||
East | 1,796 | $ | 494.8 | 1,222 | $ | 346.2 | ||||||
Midwest | 671 | 257.8 | 521 | 192.0 | ||||||||
Southeast | 3,446 | 934.4 | 3,052 | 793.0 | ||||||||
South Central | 4,272 | 1,072.0 | 3,479 | 794.0 | ||||||||
Southwest | 539 | 118.6 | 504 | 107.8 | ||||||||
West | 1,453 | 696.8 | 1,281 | 590.5 | ||||||||
12,177 | $ | 3,574.4 | 10,059 | $ | 2,823.5 |