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Table of Contents

Table of Contents

Table of Contents

Table of Contents

Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

1901 Ascension Boulevard, Suite 100, Arlington, Texas 76006
(Address of Principal Executive Offices)

On January 21, 2004, D.R. Horton, Inc. issued a press release announcing its earnings and other financial results for the first quarter ended December 31, 2003. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference in its entirety by reference into this Item 12.

The information furnished in this Item 12 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

D.R. HORTON, INC. REPORTS A 66% INCREASE IN FISCAL YEAR 2004 FIRST QUARTER NET INCOME

•

Homebuilding debt to total capitalization (net of cash) improved to 42.9% from 51.5% a year ago

ARLINGTON, TEXAS — D.R. Horton, Inc. (NYSE:DHI) Wednesday (January 21, 2004), reported that net income for the first fiscal quarter ended December 31, 2003 increased 66% to $185.6 million ($0.78 per diluted share), compared to $111.8 million ($0.50 per diluted share) for the quarter ended December 31, 2002. All outstanding shares and per share amounts reflect the Company’s 3 for 2 stock split, which became effective on January 12, 2004. First quarter consolidated revenue increased 26% to $2.2 billion from $1.7 billion in the year ago quarter. Homes closed for the first quarter increased 23% to 9,242 homes from 7,514 homes a year ago.

The Company reported a record December 31, 2003 sales contract backlog of $3.6 billion (14,480 homes), an increase of 24% from $2.9 billion (12,435 homes) a year ago. The Company previously reported that net sales orders for the quarter increased 20% to $2.0 billion (8,234 homes) from $1.7 billion (7,252 homes) for the same quarter last year.

The Company expects diluted earnings per share for the quarter ended March 31, 2004 to be in the range of $0.65 to $0.70 (assuming approximately 237 million diluted shares). The Company expects diluted

earnings per share for fiscal year 2004 to be in the range of $3.15 to $3.25 (assuming approximately 237 million diluted shares). This range represents a 15% to 19% increase in earnings per share over the $2.73 reported in fiscal year 2003, and is based on projected revenues of approximately $9.6 to $9.8 billion (approximately 41,000 to 42,000 homes closed).

D.R. Horton’s earnings release conference call will be Thursday, January 22, 2004 at 10:00 a.m. EST. The dial-in number is 800-374-9096, and the call will also be webcast from www.DRHORTON.com on the “Investor Relations” page.

Donald R. Horton, Chairman of the Board, said, “We are extremely pleased with the Company’s first quarter performance, where once again we grew our net income at a faster pace than our revenues. The Company’s continued double-digit sales momentum combined with our record $3.6 billion backlog, provide a solid foundation for achieving our 27th consecutive year of record revenues and earnings in fiscal year 2004.”

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 in 20 states and 47 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 press release relate to the Company’s expectation of earnings per share for the quarter ending March 31, 2004 to be in the range of $0.65 to $0.70, the Company’s expectation of earnings per share for the 2004 fiscal year to be in the range of $3.15 to $3.25, which is based on projected revenues of approximately $9.6 to $9.8 billion (based on projected 41,000 to 42,000 homes closed), and the belief that the Company’s double-digit sales momentum combined with its record $3.6 billion backlog provide a solid foundation for achieving the Company’s 27th consecutive year of record revenues and earnings in

fiscal year 2004. 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; changes in income tax laws affecting mortgage interest deductibility; 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 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.


			Three months ended
			December 31,

			2002			2003

			(In millions, except per share amounts)
Homebuilding:
	Revenues
		Home sales	$	1,666.4		$	2,134.6
		Land/lot sales		40.3			29.0

				1,706.7			2,163.6

	Cost of sales
		Home sales		1,333.7			1,654.3
		Land/lot sales		34.8			16.0

				1,368.5			1,670.3

	Gross profit
		Home sales		332.7			480.3
		Land/lot sales		5.5			13.0

				338.2			493.3

	Selling, general and administrative expense			179.2			212.5
	Interest expense			0.4			0.3
	Other expense (income)			(0.2	)		(2.6	)

	Operating income from homebuilding			158.8			283.1

Financial services:
	Revenues			38.2			40.9
	Selling, general and administrative expense			22.0			25.5
	Interest expense			2.0			1.2
	Other (income)			(5.9	)		(4.5	)

	Operating income from financial services			20.1			18.7

Income before income taxes				178.9			301.8
Provision for income taxes				67.1			116.2

Net income			$	111.8		$	185.6

Amounts per share — basic:
	Net income		$	0.51		$	0.80

	Weighted average number of shares			219.8			232.3

Amounts per share — diluted:
	Net income		$	0.50		$	0.78

	Weighted average number of shares			222.8			236.7

		Other Consolidated Financial Data
	Interest amortized to home and land/lot cost of sales		$	39.5		$	52.7

	Depreciation and amortization		$	9.0		$	11.5

	Interest incurred		$	58.8		$	56.2


					As of
					December 31, 2003

					(In millions)
				ASSETS
Homebuilding:
Cash and cash equivalents					$	138.2
Inventories
	Finished homes and construction in progress					2,557.3
	Residential lots — developed and under development					2,905.3
	Land held for development					6.5
	Consolidated land inventory not owned					120.5

						5,589.6
Property and equipment (net)						82.9
Other assets						429.1
Excess of cost over net assets acquired (net)						578.9

						6,818.7

Financial services:
Cash and cash equivalents						26.0
Mortgage loans held for sale						300.2
Other assets						24.1

						350.3

					$	7,169.0

			LIABILITIES
Homebuilding:
Accounts payable and other liabilities					$	1,066.1
Notes payable						2,547.7

						3,613.8

Financial services:
Accounts payable and other liabilities						11.1
Notes payable						186.7

						197.8

						3,811.6

Minority interests						145.7

		STOCKHOLDERS’ EQUITY
Common stock						2.4
Additional capital						1,585.9
Unearned compensation						(1.6	)
Retained earnings						1,683.9
Treasury stock (at cost)						(58.9	)

						3,211.7

					$	7,169.0

NET SALES ORDERS

Three Months Ended December 31,

2002

2003

Units

$’s

Units

$’s

Mid-Atlantic

721

146.0

715

166.7

Midwest

429

106.9

411

125.2

Southeast

949

169.8

1,173

251.6

Southwest

2,771

468.9

3,280

554.8

West

2,382

806.9

2,655

935.4

7,252

1,698.5

8,234

2,033.7

HOMES CLOSED

Three Months Ended December 31,

2002

2003

Units

$’s

Units

$’s

Mid-Atlantic

665

134.2

842

181.5

Midwest

426

109.5

444

119.3

Southeast

947

157.3

1,121

217.4

Southwest

3,080

517.9

3,941

641.5

West

2,396

747.5

2,894

974.9

7,514

1,666.4

9,242

2,134.6

SALES CONTRACT BACKLOG

As of December 31,

2002

2003

Units

$’s

Units

$’s

Mid-Atlantic

1,309

276.6

1,475

356.1

Midwest

919

235.9

948

284.8

Southeast

1,671

287.3

1,875

398.3

Southwest

4,877

838.7

6,015

1,034.2

West

3,659

1,218.8

4,167

1,479.1

12,435

2,857.3

14,480

3,552.5


Delaware	1-14122	75-2386963

(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)


	Item 7. Financial Statements and Exhibits.
	Item 12. Results of Operations and Financial Condition.
SIGNATURE
EXHIBIT INDEX
EX-99.1 Press Release


		D.R.		Horton, Inc.

		By:		/s/ Bill W. Wheat
				Bill W. Wheat
				Executive Vice President and
				Chief Financial Officer

Exhibit

Number

Exhibit

Press Release dated January 21, 2004, filed with this report.


99.1		Press Release dated January 21, 2004 related to the Company’s earnings and other financial results for the first quarter ended December 31, 2003.


		1901 Ascension Blvd., Suite 100, Arlington, TX 76006
		817-856-8200
		January 21, 2004