Delaware | 1-14122 | 75-2386963 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | 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 10, 2015 related to the Company’s results and related information for the fourth quarter and fiscal year ended September 30, 2015 and declaring its quarterly dividend. |
D.R. Horton, Inc. | ||||
Date: | November 10, 2015 | By: | /S/ BILL W. WHEAT | |
Bill W. Wheat | ||||
Executive Vice President and | ||||
Chief Financial Officer |
Exhibit Number | Description | |
99.1 | Press Release dated November 10, 2015 |
• | Net sales orders increased 19% in homes to 8,477 and 22% in value to $2.5 billion |
• | Homes closed increased 23% in homes to 10,576 and 27% in value to $3.1 billion |
• | Pre-tax income increased 35% to $338.8 million |
• | Pre-tax margin improved 60 basis points to 10.7% |
• | Net income increased 44% to $238.9 million or $0.64 per diluted share |
• | Net cash generated by operations was $511.8 million |
• | Net sales orders increased 26% in homes to 37,380 and 29% in value to $10.7 billion |
• | Homes closed increased 28% in homes to 36,648 and 34% in value to $10.5 billion |
• | Sales order backlog increased 8% in homes to 10,662 and 10% in value to $3.1 billion |
• | Pre-tax income increased 38% to $1.1 billion |
• | Pre-tax margin improved 30 basis points to 10.4% |
• | Net income increased 41% to $750.7 million or $2.03 per diluted share |
• | Net cash generated by operations was $700.4 million |
• | Book value per share increased 14% to $15.99 |
September 30, | |||||||
2015 | 2014 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Homebuilding: | |||||||
Cash and cash equivalents | $ | 1,355.9 | $ | 632.5 | |||
Restricted cash | 9.7 | 10.0 | |||||
Inventories: | |||||||
Construction in progress and finished homes | 3,501.2 | 3,541.3 | |||||
Residential land and lots — developed and under development | 4,065.3 | 3,800.0 | |||||
Land held for development | 202.3 | 332.8 | |||||
Land held for sale | 38.2 | 26.4 | |||||
7,807.0 | 7,700.5 | ||||||
Deferred income taxes, net of valuation allowance of $10.1 million and $31.1 million at September 30, 2015 and 2014, respectively | 558.1 | 565.0 | |||||
Property and equipment, net | 144.0 | 190.8 | |||||
Other assets | 456.2 | 424.0 | |||||
Goodwill | 87.2 | 94.8 | |||||
10,418.1 | 9,617.6 | ||||||
Financial Services: | |||||||
Cash and cash equivalents | 27.9 | 29.3 | |||||
Mortgage loans held for sale | 631.0 | 476.9 | |||||
Other assets | 74.0 | 61.6 | |||||
732.9 | 567.8 | ||||||
Total assets | $ | 11,151.0 | $ | 10,185.4 | |||
LIABILITIES | |||||||
Homebuilding: | |||||||
Accounts payable | $ | 473.0 | $ | 480.3 | |||
Accrued expenses and other liabilities | 929.2 | 875.0 | |||||
Notes payable | 3,333.6 | 3,306.5 | |||||
4,735.8 | 4,661.8 | ||||||
Financial Services: | |||||||
Accounts payable and other liabilities | 41.9 | 44.7 | |||||
Mortgage repurchase facility | 477.9 | 359.2 | |||||
519.8 | 403.9 | ||||||
Total liabilities | 5,255.6 | 5,065.7 | |||||
EQUITY | |||||||
Common stock, $.01 par value, 1,000,000,000 shares authorized, 375,847,442 shares issued and 368,647,371 shares outstanding at September 30, 2015 and 371,786,765 shares issued and 364,586,694 shares outstanding at September 30, 2014 | 3.8 | 3.7 | |||||
Additional paid-in capital | 2,733.8 | 2,613.7 | |||||
Retained earnings | 3,289.6 | 2,630.5 | |||||
Treasury stock, 7,200,071 shares at September 30, 2015 and 2014, at cost | (134.3 | ) | (134.3 | ) | |||
Accumulated other comprehensive income | 1.4 | 2.2 | |||||
Total stockholders’ equity | 5,894.3 | 5,115.8 | |||||
Noncontrolling interests | 1.1 | 3.9 | |||||
Total equity | 5,895.4 | 5,119.7 | |||||
Total liabilities and equity | $ | 11,151.0 | $ | 10,185.4 |
Three Months Ended September 30, | Fiscal Year Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(In millions, except per share data) | |||||||||||||||
Homebuilding: | |||||||||||||||
Revenues: | |||||||||||||||
Home sales | $ | 3,052.1 | $ | 2,403.6 | $ | 10,469.4 | $ | 7,804.7 | |||||||
Land/lot sales and other | 39.0 | 19.7 | 89.6 | 53.8 | |||||||||||
3,091.1 | 2,423.3 | 10,559.0 | 7,858.5 | ||||||||||||
Cost of sales: | |||||||||||||||
Home sales | 2,444.8 | 1,911.6 | 8,393.6 | 6,139.1 | |||||||||||
Land/lot sales and other | 37.7 | 16.7 | 81.8 | 44.3 | |||||||||||
Inventory and land option charges | 26.3 | 21.3 | 60.3 | 85.2 | |||||||||||
2,508.8 | 1,949.6 | 8,535.7 | 6,268.6 | ||||||||||||
Gross profit: | |||||||||||||||
Home sales | 607.3 | 492.0 | 2,075.8 | 1,665.6 | |||||||||||
Land/lot sales and other | 1.3 | 3.0 | 7.8 | 9.5 | |||||||||||
Inventory and land option charges | (26.3 | ) | (21.3 | ) | (60.3 | ) | (85.2 | ) | |||||||
582.3 | 473.7 | 2,023.3 | 1,589.9 | ||||||||||||
Selling, general and administrative expense | 275.4 | 241.0 | 1,013.6 | 834.2 | |||||||||||
Goodwill impairment | 9.8 | — | 9.8 | — | |||||||||||
Other (income) | (4.4 | ) | (3.9 | ) | (18.4 | ) | (13.1 | ) | |||||||
Homebuilding pre-tax income | 301.5 | 236.6 | 1,018.3 | 768.8 | |||||||||||
Financial Services: | |||||||||||||||
Revenues | 81.4 | 49.0 | 265.0 | 166.4 | |||||||||||
General and administrative expense | 47.8 | 37.5 | 172.4 | 131.2 | |||||||||||
Interest and other (income) | (3.7 | ) | (2.7 | ) | (12.5 | ) | (10.2 | ) | |||||||
Financial services pre-tax income | 37.3 | 14.2 | 105.1 | 45.4 | |||||||||||
Income before income taxes | 338.8 | 250.8 | 1,123.4 | 814.2 | |||||||||||
Income tax expense | 99.9 | 84.5 | 372.7 | 280.7 | |||||||||||
Net income | $ | 238.9 | $ | 166.3 | $ | 750.7 | $ | 533.5 | |||||||
Other comprehensive (loss) income, net of income tax | (0.8 | ) | — | (0.8 | ) | 0.3 | |||||||||
Comprehensive income | $ | 238.1 | $ | 166.3 | $ | 749.9 | $ | 533.8 | |||||||
Basic: | |||||||||||||||
Net income per share | $ | 0.65 | $ | 0.46 | $ | 2.05 | $ | 1.57 | |||||||
Weighted average number of common shares | 367.7 | 364.5 | 366.3 | 340.5 | |||||||||||
Diluted: | |||||||||||||||
Net income per share | $ | 0.64 | $ | 0.45 | $ | 2.03 | $ | 1.50 | |||||||
Numerator for diluted net income per share after assumed conversions | $ | 238.9 | $ | 166.3 | $ | 750.7 | $ | 550.0 | |||||||
Adjusted weighted average number of common shares | 371.5 | 367.6 | 369.8 | 366.6 | |||||||||||
Other Consolidated Financial Data: | |||||||||||||||
Interest charged to cost of sales | $ | 47.5 | $ | 36.6 | $ | 159.4 | $ | 123.1 | |||||||
Depreciation and amortization | $ | 14.4 | $ | 11.8 | $ | 54.1 | $ | 38.4 | |||||||
Interest incurred | $ | 43.0 | $ | 41.8 | $ | 169.2 | $ | 185.8 |
Fiscal Year Ended September 30, | |||||||
2015 | 2014 | ||||||
(In millions) | |||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 750.7 | $ | 533.5 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 54.1 | 38.4 | |||||
Amortization of discounts and fees | 5.6 | 27.4 | |||||
Stock based compensation expense | 42.2 | 26.2 | |||||
Excess income tax benefit from employee stock awards | (12.3 | ) | (0.6 | ) | |||
Deferred income taxes | 3.1 | 17.4 | |||||
Inventory and land option charges | 60.3 | 85.2 | |||||
Goodwill impairment | 9.8 | — | |||||
Changes in operating assets and liabilities: | |||||||
Decrease (increase) in construction in progress and finished homes | 63.1 | (918.2 | ) | ||||
Increase in residential land and lots – developed, under development, held for development and held for sale | (152.6 | ) | (513.6 | ) | |||
(Increase) decrease in other assets | (29.8 | ) | 8.8 | ||||
Increase in mortgage loans held for sale | (154.1 | ) | (81.8 | ) | |||
Increase in accounts payable, accrued expenses and other liabilities | 60.3 | 115.9 | |||||
Net cash provided by (used in) operating activities | 700.4 | (661.4 | ) | ||||
INVESTING ACTIVITIES | |||||||
Purchases of property and equipment | (56.1 | ) | (100.2 | ) | |||
Proceeds from the sale of property and equipment | 56.0 | — | |||||
(Increase) decrease in restricted cash | (0.7 | ) | 67.8 | ||||
Net principal increase of other mortgage loans and real estate owned | (8.9 | ) | (5.6 | ) | |||
Purchases of debt securities collateralized by residential real estate | (14.8 | ) | — | ||||
Payments related to acquisition of a business | (70.9 | ) | (244.1 | ) | |||
Net cash used in investing activities | (95.4 | ) | (282.1 | ) | |||
FINANCING ACTIVITIES | |||||||
Proceeds from notes payable | 1,590.7 | 1,427.6 | |||||
Repayment of notes payable | (1,456.2 | ) | (796.9 | ) | |||
Proceeds from stock associated with certain employee benefit plans | 61.8 | 45.2 | |||||
Excess income tax benefit from employee stock awards | 12.3 | 0.6 | |||||
Cash dividends paid | (91.6 | ) | (48.6 | ) | |||
Net cash provided by financing activities | 117.0 | 627.9 | |||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 722.0 | (315.6 | ) | ||||
Cash and cash equivalents at beginning of year | 661.8 | 977.4 | |||||
Cash and cash equivalents at end of year | $ | 1,383.8 | $ | 661.8 |
NET SALES ORDERS | ||||||||||||||||||||||||
Three Months Ended September 30, | Fiscal Year Ended September 30, | |||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
Homes | Value | Homes | Value | Homes | Value | Homes | Value | |||||||||||||||||
East | 1,157 | $ | 325.2 | 1,084 | $ | 301.0 | 4,859 | $ | 1,319.8 | 3,867 | $ | 1,074.2 | ||||||||||||
Midwest | 354 | 137.7 | 355 | 125.8 | 1,696 | 641.0 | 1,413 | 514.9 | ||||||||||||||||
Southeast | 2,868 | 754.6 | 2,042 | 526.4 | 11,703 | 3,053.4 | 8,529 | 2,164.4 | ||||||||||||||||
South Central | 2,367 | 583.2 | 2,194 | 490.1 | 11,753 | 2,849.7 | 9,707 | 2,144.5 | ||||||||||||||||
Southwest | 408 | 89.8 | 291 | 65.6 | 1,645 | 364.1 | 1,298 | 285.2 | ||||||||||||||||
West | 1,323 | 563.9 | 1,169 | 500.9 | 5,724 | 2,510.7 | 4,895 | 2,125.4 | ||||||||||||||||
8,477 | $ | 2,454.4 | 7,135 | $ | 2,009.8 | 37,380 | $ | 10,738.7 | 29,709 | $ | 8,308.6 |
HOMES CLOSED | ||||||||||||||||||||||||
Three Months Ended September 30, | Fiscal Year Ended September 30, | |||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
Homes | Value | Homes | Value | Homes | Value | Homes | Value | |||||||||||||||||
East | 1,439 | $ | 382.1 | 1,121 | $ | 310.1 | 4,880 | $ | 1,323.5 | 3,537 | $ | 948.0 | ||||||||||||
Midwest | 487 | 185.8 | 384 | 144.6 | 1,811 | 665.9 | 1,342 | 483.0 | ||||||||||||||||
Southeast | 3,226 | 830.4 | 2,643 | 661.5 | 11,093 | 2,866.2 | 8,743 | 2,158.0 | ||||||||||||||||
South Central | 3,259 | 792.2 | 2,649 | 577.9 | 11,455 | 2,690.1 | 9,046 | 1,948.6 | ||||||||||||||||
Southwest | 414 | 93.1 | 352 | 77.4 | 1,499 | 336.1 | 1,348 | 285.2 | ||||||||||||||||
West | 1,751 | 768.5 | 1,463 | 632.1 | 5,910 | 2,587.6 | 4,654 | 1,981.9 | ||||||||||||||||
10,576 | $ | 3,052.1 | 8,612 | $ | 2,403.6 | 36,648 | $ | 10,469.4 | 28,670 | $ | 7,804.7 |
SALES ORDER BACKLOG | ||||||||||||
As of September 30, | ||||||||||||
2015 | 2014 | |||||||||||
Homes | Value | Homes | Value | |||||||||
East | 1,430 | $ | 413.0 | 1,451 | $ | 416.7 | ||||||
Midwest | 412 | 166.4 | 527 | 191.3 | ||||||||
Southeast | 3,511 | 977.9 | 2,901 | 790.7 | ||||||||
South Central | 3,656 | 951.3 | 3,358 | 791.7 | ||||||||
Southwest | 571 | 124.0 | 425 | 96.0 | ||||||||
West | 1,082 | 514.2 | 1,226 | 572.4 | ||||||||
10,662 | $ | 3,146.8 | 9,888 | $ | 2,858.8 |