Delaware | 1-14122 | 75-2386963 | ||
(State or other jurisdiction | (Commission | (IRS Employer | ||
of incorporation) | File Number) | 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)) |
Item 2.02. Results of Operations and Financial Condition | ||||||||
Item 9.01. Financial Statements and Exhibits | ||||||||
SIGNATURE | ||||||||
EXHIBIT INDEX | ||||||||
EX-99.1 |
99.1
|
Press Release dated November 11, 2011 related to the Companys results and related information for the fourth quarter and fiscal year ended September 30, 2011 and declaring its quarterly dividend. |
2
D. R. Horton, Inc. |
||||
Date: November 11, 2011 | By: | /s/ Bill W. Wheat | ||
Bill W. Wheat | ||||
Executive Vice President and Chief Financial Officer |
3
Jessica Hansen, Director of Investor Relations | |||
301 Commerce Street, Ste. 500, Fort Worth, Texas 76102 | |||
817-390-8200 | |||
November 11, 2011 |
September 30, | ||||||||
2011 | 2010 | |||||||
(In millions) | ||||||||
ASSETS | ||||||||
Homebuilding: |
||||||||
Cash and cash equivalents |
$ | 715.5 | $ | 1,282.6 | ||||
Marketable securities, available-for-sale |
297.6 | 297.7 | ||||||
Restricted cash |
49.1 | 53.7 | ||||||
Inventories: |
||||||||
Construction in progress and finished homes |
1,369.2 | 1,286.0 | ||||||
Residential land and lots developed and under development |
1,370.7 | 1,406.1 | ||||||
Land held for development |
709.8 | 749.3 | ||||||
Land inventory not owned |
| 7.6 | ||||||
3,449.7 | 3,449.0 | |||||||
Income taxes receivable |
12.4 | 16.0 | ||||||
Deferred income taxes, net of valuation allowance of
$848.5 million and $902.6 million at September 30, 2011
and 2010, respectively |
| | ||||||
Property and equipment, net |
57.6 | 60.5 | ||||||
Other assets |
398.4 | 434.8 | ||||||
Goodwill |
15.9 | 15.9 | ||||||
4,996.2 | 5,610.2 | |||||||
Financial Services: |
||||||||
Cash and cash equivalents |
17.1 | 26.7 | ||||||
Mortgage loans held for sale |
294.1 | 253.8 | ||||||
Other assets |
51.0 | 47.9 | ||||||
362.2 | 328.4 | |||||||
$ | 5,358.4 | $ | 5,938.6 | |||||
LIABILITIES |
||||||||
Homebuilding: |
||||||||
Accounts payable |
$ | 154.0 | $ | 135.1 | ||||
Accrued expenses and other liabilities |
829.8 | 957.2 | ||||||
Notes payable |
1,588.1 | 2,085.3 | ||||||
2,571.9 | 3,177.6 | |||||||
Financial Services: |
||||||||
Accounts payable and other liabilities |
46.5 | 51.6 | ||||||
Mortgage repurchase facility |
116.5 | 86.5 | ||||||
163.0 | 138.1 | |||||||
2,734.9 | 3,315.7 | |||||||
EQUITY |
||||||||
Common stock |
3.2 | 3.2 | ||||||
Additional paid-in capital |
1,917.0 | 1,894.8 | ||||||
Retained earnings |
834.6 | 810.6 | ||||||
Treasury stock, at cost |
(134.3 | ) | (95.7 | ) | ||||
Accumulated other comprehensive income |
0.1 | 0.3 | ||||||
2,620.6 | 2,613.2 | |||||||
Noncontrolling interests |
2.9 | 9.7 | ||||||
2,623.5 | 2,622.9 | |||||||
$ | 5,358.4 | $ | 5,938.6 | |||||
Three Months Ended | Fiscal Year Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
Homebuilding: |
||||||||||||||||
Revenues: |
||||||||||||||||
Home sales |
$ | 1,073.7 | $ | 921.1 | $ | 3,542.3 | $ | 4,302.3 | ||||||||
Land/lot sales |
0.4 | 4.6 | 7.3 | 7.4 | ||||||||||||
1,074.1 | 925.7 | 3,549.6 | 4,309.7 | |||||||||||||
Cost of sales: |
||||||||||||||||
Home sales |
901.1 | 764.7 | 2,971.0 | 3,558.3 | ||||||||||||
Land/lot sales |
0.2 | 2.4 | 6.9 | 4.6 | ||||||||||||
Inventory impairments and land
option cost write-offs |
12.8 | 30.8 | 45.4 | 64.7 | ||||||||||||
914.1 | 797.9 | 3,023.3 | 3,627.6 | |||||||||||||
Gross profit: |
||||||||||||||||
Home sales |
172.6 | 156.4 | 571.3 | 744.0 | ||||||||||||
Land/lot sales |
0.2 | 2.2 | 0.4 | 2.8 | ||||||||||||
Inventory impairments and land
option cost write-offs |
(12.8 | ) | (30.8 | ) | (45.4 | ) | (64.7 | ) | ||||||||
160.0 | 127.8 | 526.3 | 682.1 | |||||||||||||
Selling, general and administrative expense |
124.2 | 122.1 | 480.0 | 523.2 | ||||||||||||
Interest expense |
9.5 | 17.0 | 50.5 | 86.3 | ||||||||||||
Loss (gain) on early retirement of debt, net |
0.1 | (1.8 | ) | 10.8 | 4.9 | |||||||||||
Other (income) |
(1.2 | ) | (3.0 | ) | (8.0 | ) | (10.4 | ) | ||||||||
Operating income (loss) from Homebuilding |
27.4 | (6.5 | ) | (7.0 | ) | 78.1 | ||||||||||
Financial Services: |
||||||||||||||||
Revenues, net of recourse and reinsurance expense |
24.2 | 22.7 | 87.2 | 90.5 | ||||||||||||
General and administrative expense |
20.0 | 19.9 | 76.3 | 77.2 | ||||||||||||
Interest expense |
0.6 | 0.5 | 1.4 | 1.9 | ||||||||||||
Interest and other (income) |
(2.8 | ) | (2.5 | ) | (9.6 | ) | (10.0 | ) | ||||||||
Operating income from Financial Services |
6.4 | 4.8 | 19.1 | 21.4 | ||||||||||||
Income (loss) before income taxes |
33.8 | (1.7 | ) | 12.1 | 99.5 | |||||||||||
Income tax (benefit) expense |
(1.9 | ) | 7.2 | (59.7 | ) | (145.6 | ) | |||||||||
Net income (loss) |
$ | 35.7 | $ | (8.9 | ) | $ | 71.8 | $ | 245.1 | |||||||
Other comprehensive income (loss), net of income tax: |
||||||||||||||||
Unrealized (loss) gain related to available-for-sale securities |
(0.2 | ) | 0.2 | (0.2 | ) | 0.3 | ||||||||||
Comprehensive income (loss) |
$ | 35.5 | $ | (8.7 | ) | $ | 71.6 | $ | 245.4 | |||||||
Basic: |
||||||||||||||||
Net income (loss) per share |
$ | 0.11 | $ | (0.03 | ) | $ | 0.23 | $ | 0.77 | |||||||
Weighted average number of common shares |
316.0 | 318.5 | 318.3 | 318.1 | ||||||||||||
Diluted: |
||||||||||||||||
Net income (loss) per share |
$ | 0.11 | $ | (0.03 | ) | $ | 0.23 | $ | 0.77 | |||||||
Adjusted weighted average number of common shares |
316.2 | 318.5 | 318.5 | 318.6 | ||||||||||||
Other Consolidated Financial Data: |
||||||||||||||||
Interest amortized to home and land/lot cost of sales |
$ | 25.1 | $ | 26.4 | $ | 90.8 | $ | 122.1 | ||||||||
Depreciation |
$ | 5.0 | $ | 4.8 | $ | 19.9 | $ | 18.4 | ||||||||
Interest incurred |
$ | 30.3 | $ | 36.8 | $ | 131.6 | $ | 175.1 | ||||||||
Fiscal Year Ended | ||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
(In millions) | ||||||||
Operating Activities |
||||||||
Net income |
$ | 71.8 | $ | 245.1 | ||||
Adjustments to reconcile net income to net cash provided by
operating activities: |
||||||||
Depreciation |
19.9 | 18.4 | ||||||
Amortization of discounts and fees |
37.2 | 30.8 | ||||||
Stock based compensation expense |
14.2 | 13.3 | ||||||
Income tax benefit from stock option exercises |
| (2.8 | ) | |||||
Loss on early retirement of debt, net |
10.8 | 4.9 | ||||||
Gain on sale of marketable securities |
(0.1 | ) | | |||||
Inventory impairments and land option cost write-offs |
45.4 | 64.7 | ||||||
Changes in operating assets and liabilities: |
||||||||
(Increase) decrease in construction in progress and finished
homes |
(91.4 | ) | 156.0 | |||||
Decrease (increase) in residential land and lots developed,
under development, and held for development |
16.9 | (11.2 | ) | |||||
Decrease in other assets |
28.7 | 2.5 | ||||||
Decrease in income taxes receivable |
3.6 | 277.1 | ||||||
Increase in mortgage loans held for sale |
(40.3 | ) | (33.0 | ) | ||||
Decrease in accounts payable, accrued expenses and other
liabilities |
(101.8 | ) | (56.4 | ) | ||||
Net cash provided by operating activities |
14.9 | 709.4 | ||||||
Investing Activities |
||||||||
Purchases of property and equipment |
(16.3 | ) | (19.2 | ) | ||||
Purchases of marketable securities |
(300.1 | ) | (328.0 | ) | ||||
Proceeds from the sale or maturity of marketable securities |
292.5 | 27.7 | ||||||
Decrease in restricted cash |
4.6 | 1.5 | ||||||
Net cash used in investing activities |
(19.3 | ) | (318.0 | ) | ||||
Financing Activities |
||||||||
Proceeds from notes payable |
30.0 | 17.8 | ||||||
Repayment of notes payable |
(519.3 | ) | (1,019.9 | ) | ||||
Proceeds from stock associated with certain employee benefit
plans |
3.4 | 7.6 | ||||||
Income tax benefit from stock option exercises |
| 2.8 | ||||||
Cash dividends paid |
(47.8 | ) | (47.7 | ) | ||||
Purchase of treasury stock |
(38.6 | ) | | |||||
Net cash used in financing activities |
(572.3 | ) | (1,039.4 | ) | ||||
Decrease in Cash and Cash Equivalents |
(576.7 | ) | (648.0 | ) | ||||
Cash and cash equivalents at beginning of year |
1,309.3 | 1,957.3 | ||||||
Cash and cash equivalents at end of year |
$ | 732.6 | $ | 1,309.3 | ||||
Three Months Ended September 30, | Fiscal Year Ended September 30, | |||||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||||||
Homes | Value | Homes | Value | Homes | Value | Homes | Value | |||||||||||||||||||||||||
East |
509 | $ | 126.2 | 445 | $ | 101.5 | 2,066 | $ | 482.6 | 2,027 | $ | 469.0 | ||||||||||||||||||||
Midwest |
247 | 69.8 | 224 | 62.6 | 1,005 | 272.0 | 1,045 | 296.0 | ||||||||||||||||||||||||
Southeast |
998 | 195.2 | 733 | 139.1 | 4,019 | 776.1 | 3,892 | 728.7 | ||||||||||||||||||||||||
South Central |
1,498 | 270.5 | 1,546 | 261.7 | 6,169 | 1,092.2 | 7,375 | 1,273.4 | ||||||||||||||||||||||||
Southwest |
352 | 66.1 | 398 | 72.5 | 1,284 | 239.6 | 1,785 | 315.3 | ||||||||||||||||||||||||
West |
637 | 199.8 | 633 | 180.1 | 2,878 | 865.1 | 3,251 | 928.6 | ||||||||||||||||||||||||
4,241 | $ | 927.6 | 3,979 | $ | 817.5 | 17,421 | $ | 3,727.6 | 19,375 | $ | 4,011.0 | |||||||||||||||||||||
Three Months Ended September 30, | Fiscal Year Ended September 30, | |||||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||||||
Homes | Value | Homes | Value | Homes | Value | Homes | Value | |||||||||||||||||||||||||
East |
557 | $ | 129.5 | 484 | $ | 110.5 | 1,932 | $ | 438.4 | 2,114 | $ | 492.2 | ||||||||||||||||||||
Midwest |
264 | 74.9 | 247 | 71.8 | 964 | 261.5 | 1,187 | 330.9 | ||||||||||||||||||||||||
Southeast |
1,089 | 212.0 | 901 | 171.5 | 3,546 | 691.8 | 4,049 | 745.2 | ||||||||||||||||||||||||
South Central |
1,862 | 328.4 | 1,534 | 267.3 | 6,150 | 1,080.0 | 8,046 | 1,378.8 | ||||||||||||||||||||||||
Southwest |
366 | 70.7 | 316 | 58.1 | 1,263 | 234.8 | 1,872 | 329.7 | ||||||||||||||||||||||||
West |
849 | 258.2 | 799 | 241.9 | 2,840 | 835.8 | 3,607 | 1,025.5 | ||||||||||||||||||||||||
4,987 | $ | 1,073.7 | 4,281 | $ | 921.1 | 16,695 | $ | 3,542.3 | 20,875 | $ | 4,302.3 | |||||||||||||||||||||
As of September 30, | ||||||||||||||||
2011 | 2010 | |||||||||||||||
Homes | Value | Homes | Value | |||||||||||||
East |
606 | $ | 147.6 | 472 | $ | 103.4 | ||||||||||
Midwest |
288 | 80.6 | 247 | 70.1 | ||||||||||||
Southeast |
1,285 | 246.9 | 812 | 162.5 | ||||||||||||
South Central |
1,710 | 309.5 | 1,691 | 297.3 | ||||||||||||
Southwest |
426 | 76.6 | 405 | 71.9 | ||||||||||||
West |
539 | 175.0 | 501 | 145.6 | ||||||||||||
4,854 | $ | 1,036.2 | 4,128 | $ | 850.8 | |||||||||||