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 28, 2015 related to the Company’s results and related information for the third quarter ended June 30, 2015 and declaring its quarterly dividend. |
D.R. Horton, Inc. | ||||
Date: | July 28, 2015 | By: | /S/ BILL W. WHEAT | |
Bill W. Wheat | ||||
Executive Vice President and | ||||
Chief Financial Officer |
Exhibit Number | Description | |
99.1 | Press Release dated July 28, 2015 |
• | Net sales orders increased 25% in value to $3.0 billion and 22% in homes to 10,398 |
• | Homes closed increased 37% in value to $2.9 billion and 28% in homes to 9,856 |
• | Sales order backlog increased 15% in value to $3.7 billion and 12% in homes to 12,761 |
• | Pre-tax income increased 94% to $333.8 million |
• | Pre-tax profit margin improved 330 basis points to 11.3% |
• | Net income increased 96% to $221.4 million, or $0.60 per diluted share |
• | Cash flow from operations for the nine months ended June 30, 2015 improved $762.3 million to $188.6 million |
June 30, 2015 | September 30, 2014 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Homebuilding: | |||||||
Cash and cash equivalents | $ | 766.7 | $ | 632.5 | |||
Restricted cash | 11.7 | 10.0 | |||||
Inventories: | |||||||
Construction in progress and finished homes | 3,815.3 | 3,541.3 | |||||
Residential land and lots — developed and under development | 4,010.8 | 3,800.0 | |||||
Land held for development | 235.4 | 332.8 | |||||
Land held for sale | 49.7 | 26.4 | |||||
8,111.2 | 7,700.5 | ||||||
Deferred income taxes, net of valuation allowance of $30.1 million and $31.1 million at June 30, 2015 and September 30, 2014, respectively | 544.3 | 565.0 | |||||
Property and equipment, net | 199.3 | 190.8 | |||||
Other assets | 445.4 | 441.1 | |||||
Goodwill | 97.0 | 94.8 | |||||
10,175.6 | 9,634.7 | ||||||
Financial Services: | |||||||
Cash and cash equivalents | 38.9 | 29.3 | |||||
Mortgage loans held for sale | 568.4 | 476.9 | |||||
Other assets | 80.6 | 61.6 | |||||
687.9 | 567.8 | ||||||
Total assets | $ | 10,863.5 | $ | 10,202.5 | |||
LIABILITIES | |||||||
Homebuilding: | |||||||
Accounts payable | $ | 462.1 | $ | 480.3 | |||
Accrued expenses and other liabilities | 909.2 | 875.0 | |||||
Notes payable | 3,373.1 | 3,323.6 | |||||
4,744.4 | 4,678.9 | ||||||
Financial Services: | |||||||
Accounts payable and other liabilities | 40.1 | 44.7 | |||||
Mortgage repurchase facility | 448.0 | 359.2 | |||||
488.1 | 403.9 | ||||||
Total liabilities | 5,232.5 | 5,082.8 | |||||
EQUITY | |||||||
Common stock, $.01 par value, 1,000,000,000 shares authorized, 373,936,373 shares issued and 366,736,302 shares outstanding at June 30, 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 | 2,684.3 | 2,613.7 | |||||
Retained earnings | 3,073.7 | 2,630.5 | |||||
Treasury stock, 7,200,071 shares at June 30, 2015 and September 30, 2014, at cost | (134.3 | ) | (134.3 | ) | |||
Accumulated other comprehensive income | 2.2 | 2.2 | |||||
Total stockholders’ equity | 5,629.6 | 5,115.8 | |||||
Noncontrolling interests | 1.4 | 3.9 | |||||
Total equity | 5,631.0 | 5,119.7 | |||||
Total liabilities and equity | $ | 10,863.5 | $ | 10,202.5 |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(In millions, except per share data) | |||||||||||||||
Homebuilding: | |||||||||||||||
Revenues: | |||||||||||||||
Home sales | $ | 2,857.9 | $ | 2,090.3 | $ | 7,417.4 | $ | 5,401.1 | |||||||
Land/lot sales and other | 18.5 | 12.6 | 50.6 | 34.0 | |||||||||||
2,876.4 | 2,102.9 | 7,468.0 | 5,435.1 | ||||||||||||
Cost of sales: | |||||||||||||||
Home sales | 2,288.9 | 1,658.0 | 5,948.8 | 4,227.5 | |||||||||||
Land/lot sales and other | 16.1 | 10.7 | 44.1 | 27.5 | |||||||||||
Inventory and land option charges | 15.4 | 56.8 | 34.0 | 63.9 | |||||||||||
2,320.4 | 1,725.5 | 6,026.9 | 4,318.9 | ||||||||||||
Gross profit: | |||||||||||||||
Home sales | 569.0 | 432.3 | 1,468.6 | 1,173.6 | |||||||||||
Land/lot sales and other | 2.4 | 1.9 | 6.5 | 6.5 | |||||||||||
Inventory and land option charges | (15.4 | ) | (56.8 | ) | (34.0 | ) | (63.9 | ) | |||||||
556.0 | 377.4 | 1,441.1 | 1,116.2 | ||||||||||||
Selling, general and administrative expense | 257.8 | 221.9 | 738.2 | 593.2 | |||||||||||
Other (income) | (3.9 | ) | (3.1 | ) | (13.9 | ) | (9.2 | ) | |||||||
Homebuilding pre-tax income | 302.1 | 158.6 | 716.8 | 532.2 | |||||||||||
Financial Services: | |||||||||||||||
Revenues | 74.4 | 44.1 | 183.6 | 117.4 | |||||||||||
General and administrative expense | 46.0 | 33.8 | 124.6 | 93.7 | |||||||||||
Interest and other (income) | (3.3 | ) | (2.9 | ) | (8.8 | ) | (7.5 | ) | |||||||
Financial services pre-tax income | 31.7 | 13.2 | 67.8 | 31.2 | |||||||||||
Income before income taxes | 333.8 | 171.8 | 784.6 | 563.4 | |||||||||||
Income tax expense | 112.4 | 58.7 | 272.8 | 196.1 | |||||||||||
Net income | $ | 221.4 | $ | 113.1 | $ | 511.8 | $ | 367.3 | |||||||
Basic: | |||||||||||||||
Net income per share | $ | 0.60 | $ | 0.32 | $ | 1.40 | $ | 1.10 | |||||||
Weighted average number of common shares | 366.8 | 349.7 | 365.9 | 332.4 | |||||||||||
Diluted: | |||||||||||||||
Net income per share | $ | 0.60 | $ | 0.32 | $ | 1.39 | $ | 1.05 | |||||||
Numerator for diluted income per share after assumed conversions | $ | 221.4 | $ | 115.9 | $ | 511.8 | $ | 383.8 | |||||||
Adjusted weighted average number of common shares | 370.3 | 367.8 | 369.3 | 366.2 | |||||||||||
Other Consolidated Financial Data: | |||||||||||||||
Interest charged to cost of sales | $ | 42.7 | $ | 34.2 | $ | 111.9 | $ | 86.5 | |||||||
Depreciation and amortization | $ | 14.3 | $ | 9.9 | $ | 39.7 | $ | 26.6 | |||||||
Interest incurred | $ | 43.2 | $ | 45.1 | $ | 126.2 | $ | 144.0 |
Nine Months Ended June 30, | |||||||
2015 | 2014 | ||||||
(In millions) | |||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 511.8 | $ | 367.3 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 39.7 | 26.6 | |||||
Amortization of discounts and fees | 4.1 | 25.4 | |||||
Stock based compensation expense | 31.7 | 17.6 | |||||
Excess income tax benefit from employee stock awards | (7.3 | ) | (1.6 | ) | |||
Deferred income taxes | 20.7 | 3.8 | |||||
Inventory and land option charges | 34.0 | 63.9 | |||||
Changes in operating assets and liabilities: | |||||||
Increase in construction in progress and finished homes | (252.1 | ) | (759.4 | ) | |||
Increase in residential land and lots – developed, under development, held for development and held for sale | (120.7 | ) | (327.8 | ) | |||
(Increase) decrease in other assets | (3.2 | ) | 36.2 | ||||
Increase in mortgage loans held for sale | (91.5 | ) | (24.1 | ) | |||
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 21.4 | (1.6 | ) | ||||
Net cash provided by (used in) operating activities | 188.6 | (573.7 | ) | ||||
INVESTING ACTIVITIES | |||||||
Purchases of property and equipment | (43.3 | ) | (49.9 | ) | |||
(Increase) decrease in restricted cash | (1.7 | ) | 57.7 | ||||
Net principal increase of other mortgage loans and real estate owned | (6.3 | ) | (2.8 | ) | |||
Purchases of debt securities collateralized by residential real estate | (14.8 | ) | — | ||||
Payments related to acquisition of a business | (68.7 | ) | (222.7 | ) | |||
Net cash used in investing activities | (134.8 | ) | (217.7 | ) | |||
FINANCING ACTIVITIES | |||||||
Proceeds from notes payable | 1,560.8 | 686.3 | |||||
Repayment of notes payable | (1,433.5 | ) | (273.9 | ) | |||
Proceeds from stock associated with certain employee benefit plans | 24.0 | 43.1 | |||||
Excess income tax benefit from employee stock awards | 7.3 | 1.6 | |||||
Cash dividends paid | (68.6 | ) | (25.8 | ) | |||
Net cash provided by financing activities | 90.0 | 431.3 | |||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 143.8 | (360.1 | ) | ||||
Cash and cash equivalents at beginning of period | 661.8 | 977.4 | |||||
Cash and cash equivalents at end of period | $ | 805.6 | $ | 617.3 |
NET SALES ORDERS | ||||||||||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
Homes | Value | Homes | Value | Homes | Value | Homes | Value | |||||||||||||||||
East | 1,251 | $ | 339.8 | 1,051 | $ | 291.2 | 3,702 | $ | 994.6 | 2,783 | $ | 773.2 | ||||||||||||
Midwest | 431 | 162.1 | 411 | 150.7 | 1,342 | 503.3 | 1,058 | 389.1 | ||||||||||||||||
Southeast | 3,392 | 894.7 | 2,508 | 636.6 | 8,835 | 2,298.9 | 6,487 | 1,638.0 | ||||||||||||||||
South Central | 3,208 | 793.7 | 2,777 | 613.8 | 9,386 | 2,266.5 | 7,513 | 1,654.4 | ||||||||||||||||
Southwest | 480 | 105.5 | 334 | 74.1 | 1,237 | 274.3 | 1,007 | 219.5 | ||||||||||||||||
West | 1,636 | 713.6 | 1,470 | 639.3 | 4,401 | 1,946.8 | 3,726 | 1,624.6 | ||||||||||||||||
10,398 | $ | 3,009.4 | 8,551 | $ | 2,405.7 | 28,903 | $ | 8,284.4 | 22,574 | $ | 6,298.8 |
HOMES CLOSED | ||||||||||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
Homes | Value | Homes | Value | Homes | Value | Homes | Value | |||||||||||||||||
East | 1,335 | $ | 364.8 | 911 | $ | 244.6 | 3,441 | $ | 941.4 | 2,416 | $ | 637.9 | ||||||||||||
Midwest | 557 | 205.4 | 376 | 132.7 | 1,324 | 480.1 | 958 | 338.4 | ||||||||||||||||
Southeast | 2,969 | 775.3 | 2,363 | 584.4 | 7,867 | 2,035.8 | 6,100 | 1,496.5 | ||||||||||||||||
South Central | 2,932 | 705.5 | 2,443 | 528.2 | 8,196 | 1,898.0 | 6,397 | 1,370.7 | ||||||||||||||||
Southwest | 442 | 96.7 | 352 | 74.1 | 1,085 | 243.0 | 996 | 207.8 | ||||||||||||||||
West | 1,621 | 710.2 | 1,231 | 526.3 | 4,159 | 1,819.1 | 3,191 | 1,349.8 | ||||||||||||||||
9,856 | $ | 2,857.9 | 7,676 | $ | 2,090.3 | 26,072 | $ | 7,417.4 | 20,058 | $ | 5,401.1 |
SALES ORDER BACKLOG | ||||||||||||
As of June 30, | ||||||||||||
2015 | 2014 | |||||||||||
Homes | Value | Homes | Value | |||||||||
East | 1,712 | $ | 469.9 | 1,488 | $ | 425.9 | ||||||
Midwest | 545 | 214.5 | 556 | 210.1 | ||||||||
Southeast | 3,869 | 1,053.7 | 3,502 | 925.8 | ||||||||
South Central | 4,548 | 1,160.2 | 3,813 | 879.6 | ||||||||
Southwest | 577 | 127.4 | 486 | 107.7 | ||||||||
West | 1,510 | 718.8 | 1,520 | 703.5 | ||||||||
12,761 | $ | 3,744.5 | 11,365 | $ | 3,252.6 |