EX-99.1 7 dex991.htm PRESS RELEASE DATED APRIL 16, 2003 Press Release dated April 16, 2003

 

Exhibit 99.1

 

Sam Fuller, CFO; Stacey Dwyer, EVP

1901 Ascension Blvd., Suite 100, Arlington, TX 76006

817-856-8200

April 16, 2003

 

D.R. HORTON, INC. REPORTS A 44% INCREASE IN NET INCOME FOR THE SECOND QUARTER AND AN  ALL-TIME RECORD $3.5 BILLION BACKLOG

 

Quarter Highlights

 

  •   Net income increased 44% to $127.8 million

 

  •   Net sales orders increased 33% to $2.4 billion (10,548 homes)

 

  •   “Same store” net sales orders increased 19% to $2.2 billion (9,777 homes)

 

  •   Sales backlog increased 32% to an all-time record of $3.5 billion (15,095 homes)

 

  •   Diluted earnings per share increased 34% to $0.86

 

  •   Homes closed increased 19% to 7,888 homes

 

  •   Stockholders’ equity exceeded $2.4 billion

 

  •   Homebuilding debt to total capitalization (net of cash) improved 450 basis points to 51.3% from 55.8% a year ago

 

  •   The Company repurchased approximately 1.7 million shares in March 2003

 

ARLINGTON, TEXAS – D.R. Horton, Inc. (NYSE:DHI) Wednesday (April 16, 2003) reported that net income for the quarter ended March 31, 2003 increased 44% to $127.8 million ($0.86 per diluted share), from $88.9 million ($0.64 per diluted share) in the same quarter of fiscal 2002. Second quarter consolidated revenue increased 19% to $1.9 billion, from $1.6 billion in fiscal 2002. Homes closed increased 19% to 7,888 homes from 6,639 homes in the year ago quarter.

 

For the six months ended March 31, 2003, net income increased 48% to $239.7 million ($1.62 per diluted share), compared to $162.4 million ($1.26 per diluted share) for the same period of fiscal 2002. Consolidated revenue for the six months increased 32% to $3.7 billion, from $2.8 billion for the same period of fiscal 2002. Homebuilding revenue for the six months also increased 32% to $3.6 billion (15,402 homes closed), compared to $2.7 billion (12,330 homes closed) for the same period of fiscal 2002.

 

 

As previously reported, net sales orders for the second quarter established an all-time quarterly record of $2.4 billion (10,548 homes), an increase of 33% compared to $1.8 billion (8,617 homes) for the same quarter of fiscal 2002. Net sales orders for the first six months of fiscal 2003 increased 45% to $4.1 billion (17,800 homes), compared to $2.9 billion (13,761 homes) for the same period of fiscal 2002. The Company’s sales backlog at March 31, 2003 established an all-time company record totaling $3.5 billion (15,095 homes), up 32% from $2.7 billion (12,398 homes) at March 31, 2002.

 

The Company is raising earnings per share guidance for the fiscal year ended September 30, 2003 to the range of $3.60 to $3.65. The Company expects that the balance of the fiscal year 2003 earnings will be realized approximately 45% in our third quarter and 55% in our fourth quarter.

 

The Company will host a conference call Thursday, April 17th at 11:00 a.m. EDT. The dial-in number is 800-374-9096. The call will also be webcast from www.drhorton.com on the “Investor Relations” page.

 

Donald R. Horton, Chairman of the Board, said, “It has been an exciting quarter for the Company. The Company continues to experience strong sales demand as evidenced by the 33% sales increase in the second quarter, which contributed to an all-time record backlog of $3.5 billion. Our record earnings for the first half of this fiscal year, combined with our record backlog, ensure that fiscal year 2003 will be our 26th consecutive year of increased growth and profitability.”

 

Founded in 1978, D.R. Horton, Inc. is engaged in the construction and sale of high quality homes designed principally for the entry-level and first time move-up markets. D.R. Horton currently builds and sells homes under the D.R. Horton, Arappco, Cambridge, Continental, Dietz-Crane, Dobson, Emerald, Melody, Milburn, Schuler, SGS Communities, Stafford, Torrey, Trimark, and Western Pacific names in 20 states and 44 markets, with a geographic presence in the Midwest, Mid-Atlantic, Southeast, Southwest and Western regions of the United States. The Company also provides mortgage financing and title services for homebuyers through its mortgage and title subsidiaries.

 

Portions of this document may constitute “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Although D.R. Horton believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. All forward-looking statements are based upon information available to D.R. Horton on the date this

 

release was issued. D.R. Horton does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements in this release relate to our earnings per share guidance for 2003, when we expect the balance of our earnings to be realized, continued strong sales demand and our expectation of another consecutive year of growth and profitability in 2003 based on our record earnings and record backlog position. Factors that may cause the actual results to be materially different from the future results expressed by the forward-looking statements include, but are not limited to: changes in general economic, real estate and business conditions; changes in interest rates and the availability of mortgage financing; governmental regulations and environmental matters; the Company’s substantial leverage; competitive conditions within the industry; the availability of capital to the Company on favorable terms; the Company’s ability to integrate its acquisitions and successfully effect the cost savings, operating efficiencies and revenue enhancements that are believed available and otherwise to successfully effect its other growth strategies. Additional information about issues that could lead to material changes in performance is contained in D.R. Horton’s annual report on Form 10-K and most recent quarterly reports on Form 10-Q, which are filed with the Securities and Exchange Commission.

 

WEBSITE ADDRESS: www.DRHORTON.com

 

 

D.R. HORTON, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

 

    

Three months ended March 31,

     

Six months ended
March 31,

  
    

2002

     

2003

     

2002

     

2003

  
    

(In millions, except per share amounts)

  

Homebuilding:

                                    

Revenues

                                    

Home sales

   

$

1,534.4

 

   

$

1,777.8

 

   

$

2,660.1

 

   

$

3,444.3

 

Land/lot sales

   

 

41.8

 

   

 

91.0

 

   

 

51.1

 

   

 

131.2

 

    
  
  
  
    

 

1,576.2

 

   

 

1,868.8

 

   

 

2,711.2

 

   

 

3,575.5

 

    
  
  
  

Cost of sales

                                    

Home sales

   

 

1,258.8

 

   

 

1,419.5

 

   

 

2,157.8

 

   

 

2,753.3

 

Land/lot sales

   

 

36.2

 

   

 

76.9

 

   

 

44.1

 

   

 

111.7

 

    
  
  
  
    

 

1,295.0

 

   

 

1,496.4

 

   

 

2,201.9

 

   

 

2,865.0

 

    
  
  
  

Gross profit

                                    

Home sales

   

 

275.6

 

   

 

358.3

 

   

 

502.3

 

   

 

691.0

 

Land/lot sales

   

 

5.6

 

   

 

14.1

 

   

 

7.0

 

   

 

19.5

 

    
  
  
  
    

 

281.2

 

   

 

372.4

 

   

 

509.3

 

   

 

710.5

 

    
  
  
  

Selling, general and administrative expense

   

 

149.5

 

   

 

187.3

 

   

 

267.9

 

   

 

366.5

 

Interest expense

   

 

2.6

 

   

 

—  

 

   

 

3.8

 

   

 

0.3

 

Other expense (income)

   

 

(2.4

)

   

 

(0.1

)

   

 

0.1

 

   

 

(0.3

)

    
  
  
  

Operating income from homebuilding

   

 

131.5

 

   

 

185.2

 

   

 

237.5

 

   

 

344.0

 

    
  
  
  

Financial services:

                                    

Revenues

   

 

23.9

 

   

 

39.7

 

   

 

48.8

 

   

 

78.0

 

Selling, general and administrative expense

   

 

14.9

 

   

 

22.2

 

   

 

30.0

 

   

 

44.3

 

Interest expense

   

 

1.0

 

   

 

1.5

 

   

 

2.3

 

   

 

3.5

 

Other (income)

   

 

(2.8

)

   

 

(5.0

)

   

 

(5.8

)

   

 

(10.9

)

    
  
  
  

Operating income from financial services

   

 

10.8

 

   

 

21.0

 

   

 

22.3

 

   

 

41.1

 

    
  
  
  

Income before income taxes

   

 

142.3

 

   

 

206.2

 

   

 

259.8

 

   

 

385.1

 

Provision for income taxes

   

 

53.4

 

   

 

78.4

 

   

 

97.4

 

   

 

145.4

 

    
  
  
  

Net income

   

$

88.9

 

   

$

127.8

 

   

$

162.4

 

   

$

239.7

 

    
  
  
  

Amounts per share—basic:

                                    

Net income

   

$

0.69

 

   

$

0.87

 

   

$

1.33

 

   

$

1.64

 

    
  
  
  

Weighted average number of common shares

   

 

128.9

 

   

 

146.3

 

   

 

122.1

 

   

 

146.4

 

    
  
  
  

Amounts per share—diluted:

                                    

Net income

   

$

0.64

 

   

$

0.86

 

   

$

1.26

 

   

$

1.62

 

    
  
  
  

Weighted average number of common shares

   

$

141.5

 

   

$

148.2

 

   

$

129.4

 

   

$

148.4

 

    
  
  
  

Other Consolidated Financial Data

                                    

Interest amortized to home and land/lot cost of sales

   

$

29.4

 

   

$

49.7

 

   

$

51.7

 

   

$

89.2

 

    
  
  
  

Depreciation and amortization

   

$

5.7

 

   

$

9.8

 

   

$

11.0

 

   

$

18.8

 

    
  
  
  

Interest incurred

   

$

47.5

 

   

$

61.7

 

   

$

85.6

 

   

$

120.5

 

    
  
  
  

 

4

 

D.R. HORTON, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

    

March 31, 2002

     

March 31, 2003

  
    

(In millions)

  

ASSETS

                  

Homebuilding:

                  

Cash and cash equivalents

   

$

176.3

 

   

$

161.1

 

Inventories

   

 

4,201.1

 

   

 

4,736.2

 

Property and equipment (net)

   

 

68.5

 

   

 

77.0

 

Other assets

   

 

358.9

 

   

 

371.9

 

Excess of cost over net assets acquired

   

 

564.0

 

   

 

581.2

 

    
  
    

 

5,368.8

 

   

 

5,927.4

 

    
  

Financial services:

                  

Cash and cash equivalents

   

 

13.5

 

   

 

26.3

 

Mortgage loans held for sale

   

 

202.3

 

   

 

424.7

 

Other assets

   

 

12.1

 

   

 

20.5

 

    
  
    

 

227.9

 

   

 

471.5

 

    
  
    

$

5,596.7

 

   

$

6,398.9

 

    
  

LIABILITIES

                  

Homebuilding:

                  

Accounts payable and other liabilities

   

$

630.0

 

   

$

803.5

 

Notes payable

   

 

2,748.2

 

   

 

2,763.3

 

    
  
    

 

3,378.2

 

   

 

3,566.8

 

    
  

Financial services:

                  

Accounts payable and other liabilities

   

 

9.7

 

   

 

14.5

 

Notes payable

   

 

148.2

 

   

 

325.6

 

    
  
    

 

157.9

 

   

 

340.1

 

    
  
    

 

3,536.1

 

   

 

3,906.9

 

    
  

Minority interests

   

 

21.9

 

   

 

26.0

 

    
  

STOCKHOLDERS' EQUITY

                  

Common stock

   

 

1.5

 

   

 

1.5

 

Additional capital

   

 

1,346.2

 

   

 

1,353.5

 

Unearned compensation

   

 

(7.5

)

   

 

(3.3

)

Retained earnings

   

 

698.5

 

   

 

1,143.8

 

Treasury stock

   

 

—  

 

   

 

(29.5

)

    
  
    

 

2,038.7

 

   

 

2,466.0

 

    
  
    

$

5,596.7

 

   

$

6,398.9

 

    
  

 

 

D.R. HORTON, INC.

($'s in millions)

 

Net Sales Orders

 

    

Three Months Ended March 31,

   

Six Months Ended March 31,

    

2002

   

2003

   

2002

   

2003

    

Units

   

$'s

   

Units

   

$'s

   

Units

   

$'s

   

Units

   

$'s

Mid-Atlantic

   

883

   

$

182.6

   

993

   

$

215.1

   

1,511

   

$

310.7

   

1,714

   

$

361.0

Midwest

   

463

   

 

117.4

   

522

   

 

140.7

   

851

   

 

214.3

   

951

   

 

247.6

Southeast

   

969

   

 

158.4

   

1,152

   

 

215.5

   

1,704

   

 

276.7

   

2,101

   

 

385.4

Southwest

   

3,685

   

 

613.9

   

4,473

   

 

740.2

   

6,017

   

 

993.2

   

7,244

   

 

1,209.1

West

   

2,617

   

 

761.1

   

3,408

   

 

1,128.0

   

3,678

   

 

1,060.0

   

5,790

   

 

1,934.9

    
  
  
  
  
  
  
  
    

8,617

   

$

1,833.4

   

10,548

   

$

2,439.5

   

13,761

   

$

2,854.9

   

17,800

   

$

4,138.0

    
  
  
  
  
  
  
  

 

Homes Closed

 

    

Three Months Ended March 31,

   

Six Months Ended March 31,

    

2002

   

2003

   

2002

   

2003

    

Units

   

$'s

   

Units

   

$'s

   

Units

   

$'s

   

Units

   

$'s

Mid-Atlantic

   

633

   

$

138.6

   

743

   

$

154.5

   

1,228

   

$

263.7

   

1,408

   

$

288.7

Midwest

   

388

   

 

95.4

   

441

   

 

107.6

   

851

   

 

214.1

   

867

   

 

217.1

Southeast

   

790

   

 

135.7

   

979

   

 

167.7

   

1,678

   

 

290.6

   

1,926

   

 

325.0

Southwest

   

2,338

   

 

403.9

   

3,277

   

 

552.3

   

4,909

   

 

836.5

   

6,357

   

 

1,070.2

West

   

2,490

   

 

760.8

   

2,448

   

 

795.7

   

3,664

   

 

1,055.2

   

4,844

   

 

1,543.3

    
  
  
  
  
  
  
  
    

6,639

   

$

1,534.4

   

7,888

   

$

1,777.8

   

12,330

   

$

2,660.1

   

15,402

   

$

3,444.3

    
  
  
  
  
  
  
  

 

Sales Backlog

 

    

As of March 31,

    

2002

   

2003

    

Units

   

$'s

   

Units

   

$'s

Mid-Atlantic

   

1,105

   

$

237.4

   

1,559

   

$

337.2

Midwest

   

918

   

 

263.0

   

1,000

   

 

269.0

Southeast

   

1,490

   

 

239.6

   

1,844

   

 

335.1

Southwest

   

5,410

   

 

910.2

   

6,073

   

 

1,026.6

West

   

3,475

   

 

1,013.5

   

4,619

   

 

1,551.0

    
  
  
  
    

12,398

   

$

2,663.7

   

15,095

   

$

3,518.9

    
  
  
  

 

WEBSITE ADDRESS: www.DRHORTON.com