8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

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

July 21, 2004

(Date of Report—Date of Earliest Event Reported)

D.R. Horton, Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware
(State or Other Jurisdiction
of Incorporation) 1-14122
(Commission File Number) 75-2386963
(IRS Employer Identification No.)

1901 Ascension Boulevard, Suite 100, Arlington, Texas 76006

(Address of Principal Executive Offices)

(817) 856-8200

(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

TABLE OF CONTENTS

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

Item 7. Financial Statements and Exhibits.

(c) Exhibits:

99.1 Press Release dated July 21, 2004 related to the Company’s third quarter net income and other financial results for the third quarter ended June 30, 2004 and related to the Company’s increase in fiscal year 2004 guidance.

Item 12. Results of Operations and Financial Condition.

     On July 21, 2004, D.R. Horton, Inc. issued a press release announcing its third quarter net income and other financial results for the third quarter ended June 30, 2004 and raising its fiscal year 2004 guidance. 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.

SIGNATURE

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.

Date: July 21, 2004

D. R. Horton, Inc.
By:	\s\Bill W. Wheat
	Bill W. Wheat
	Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit
Number	Exhibit
99.1	Press Release dated July 21, 2004 (filed with this report).

EX-99.1

Exhibit 99.1

                                                            Stacey Dwyer, EVP
1901 Ascension Blvd., Suite 100, Arlington, TX 76006
817-856-8200
July 21, 2004

D.R. HORTON, INC. REPORTS A 62% INCREASE IN THIRD QUARTER NET INCOME AND A RECORD $5.2 BILLION SALES BACKLOG AT JUNE 30, 2004

Quarter Highlights

• Net income increased 62% to $251.3 million

• Earnings per diluted share increased 61% to $1.06 per diluted share

• Sales backlog increased 28% to a record $5.2 billion (19,531 homes)

• Consolidated revenue increased 26% to $2.8 billion

• Net sales orders increased 23% to $3.2 billion (12,444 homes)

• Homes closed increased 23% to 11,050 homes

• Homebuilding debt to total capitalization (net of cash) improved 230 basis points to 43.6%

     ARLINGTON, TEXAS — D.R. Horton, Inc. (NYSE:DHI) Wednesday (July 21, 2004), reported that net income for the quarter ended June 30, 2004 increased 62% to $251.3 million ($1.06 per diluted share), from $155.6 million ($0.66 per diluted share) for the same quarter in fiscal year 2003. Third quarter consolidated revenue increased 26% to $2.8 billion, from $2.2 billion in the third quarter of fiscal year 2003. Homes closed increased 23% to 11,050 homes from 9,005 in the year ago quarter.

     For the nine months ended June 30, 2004, net income increased 58% to $625.5 million ($2.64 per diluted share), compared to $395.2 million ($1.74 per diluted share) for the same period of fiscal year 2003. Consolidated revenue for the nine months increased 25% to $7.3 billion, from $5.9 billion for the same period of fiscal year 2003. Homes closed increased 23% to 30,115 homes from 24,407 for the same period of fiscal year 2003.

     As previously reported, net sales orders for the third quarter ended June 30, 2004 increased 23% to $3.2 billion (12,444 homes), compared to $2.6 billion (10,811 homes) for the same quarter of fiscal year 2003. Net sales orders for the first nine months of fiscal 2004 increased 27% to a record $8.6 billion (34,158 homes), compared to $6.8 billion (28,611 homes) for the same period of fiscal 2003.

The Company’s backlog of homes under contract at June 30, 2004 totaled a record $5.2 billion (19,531 homes), up 28% from $4.0 billion (16,901 homes) at June 30, 2003.

     The Company is increasing its earnings per share guidance for the fiscal year ended September 30, 2004 to approximately $3.75 to $3.85 based on 237.1 million diluted shares outstanding. This represents a 37% to 41% increase over the $2.73 per diluted share reported in fiscal year 2003. The earnings guidance is based on approximately 43,000 to 44,000 homes closed and $10.5 to $10.7 billion in consolidated revenue.

     The Company will host a conference call Wednesday, July 21st at 10:00 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, “D.R. Horton had another quarter of exceptional net sales orders, with each of our reporting regions producing double digit sales dollar increases. Through June 30th, the Company has already earned $1 billion in pre-tax income and $625.5 million in net income, approximately what we earned in all of fiscal year 2003. These results ensure fiscal year 2004 will be our 27th consecutive year of growth and profitability. Our continued sales momentum and $5.2 billion sales backlog position D.R. Horton for another record year in fiscal year 2005.”

     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 21 states and 51 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 fiscal year 2004,

continued sales momentum and our assurance of another consecutive year of growth and profitability in fiscal year 2004, and our expectations of another record year in fiscal year 2005 based on our 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 the most recent Form 10-Q, both of which were filed with the Securities and Exchange Commission.

D.R. HORTON, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

	Three months ended						Nine months ended
	June 30,						June 30,
	2003			2004			2003			2004
	(In millions, except per share amounts)
Homebuilding:
Revenues
Home sales	$	2,108.9		$	2,695.5		$	5,553.2		$	7,080.7
Land/lot sales		57.9			46.2			189.0			117.8
		2,166.8			2,741.7			5,742.2			7,198.5
Cost of sales
Home sales		1,676.3			2,086.8			4,429.6			5,490.0
Land/lot sales		50.5			29.1			162.1			72.4
		1,726.8			2,115.9			4,591.7			5,562.4
Gross profit
Home sales		432.6			608.7			1,123.6			1,590.7
Land/lot sales		7.4			17.1			26.9			45.4
		440.0			625.8			1,150.5			1,636.1
Selling, general and administrative expense		208.0			244.3			574.4			679.5
Interest expense		1.7			—			2.1			3.3
Other expense (income)		3.4			(7.4	)		3.1			(7.1	)
Operating income from homebuilding		226.9			388.9			570.9			960.4
Financial services:
Revenues		45.6			48.7			123.6			131.7
Selling, general and administrative expense		25.3			32.2			69.6			83.8
Interest expense		1.7			1.6			5.3			4.0
Other (income)		(5.4	)		(4.8	)		(16.4	)		(12.7	)
Operating income from financial services		24.0			19.7			65.1			56.6
Income before income taxes		250.9			408.6			636.0			1,017.0
Provision for income taxes		95.3			157.3			240.8			391.5
Net income	$	155.6		$	251.3		$	395.2		$	625.5
Amounts per share — Basic:
Net income	$	0.71		$	1.08		$	1.80		$	2.69
Weighted average number of shares		219.0			233.1			219.4			232.7
Amounts per share — Diluted:
Net income	$	0.66		$	1.06		$	1.74		$	2.64
Weighted average number of shares		236.2			237.1			227.1			237.0
Other Consolidated Financial Data
Interest amortized to home and land cost of sales	$	55.5		$	65.4		$	144.7		$	173.1
Depreciation and amortization	$	11.3		$	12.5		$	30.0		$	34.4
Interest incurred	$	64.1		$	61.3		$	184.6		$	181.7

D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)

	As of June 30,
	2004
	(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents	$	202.2
Inventories
Finished homes and construction in progress		3,135.6
Residential lots — developed and under development		3,186.4
Land held for development		6.3
Consolidated land inventory not owned		54.9
		6,383.2
Property and equipment (net)		88.9
Other assets		470.2
Excess of cost over net assets acquired (net)		578.9
		7,723.4
Financial services:
Cash and cash equivalents		37.9
Mortgage loans held for sale		413.6
Other assets		27.5
		479.0
	$	8,202.4
LIABILITIES
Homebuilding:
Accounts payable and other liabilities	$	1,176.7
Notes payable		3,005.4
		4,182.1
Financial services:
Accounts payable and other liabilities		13.4
Notes payable		313.4
		326.8
		4,508.9
Minority interests		68.5
STOCKHOLDERS’ EQUITY
Common stock		2.4
Additional capital		1,595.7
Unearned compensation		(0.5	)
Retained earnings		2,086.3
Treasury stock (at cost)		(58.9	)
		3,625.0
	$	8,202.4

D.R. HORTON, INC.
($’s in millions)

NET SALES ORDERS

	Three Months Ended June 30,								Nine Months Ended June 30,
	2003				2004				2003				2004
	Units		$’s		Units		$’s		Units		$’s		Units		$’s
Mid-Atlantic		952	$	216.1		1,147	$	296.7		2,666	$	577.1		2,896	$	740.6
Midwest		503		138.0		586		162.2		1,454		385.6		1,617		462.5
Southeast		1,213		237.7		1,739		394.1		3,314		623.0		4,670		1,010.7
Southwest		4,317		715.5		4,962		839.2		11,561		1,924.6		13,677		2,300.2
West		3,826		1,311.1		4,010		1,524.1		9,616		3,246.0		11,298		4,069.8
		10,811	$	2,618.4		12,444	$	3,216.3		28,611	$	6,756.3		34,158	$	8,583.8

HOMES CLOSED

	Three Months Ended June 30,								Nine Months Ended June 30,
	2003				2004				2003				2004
	Units		$’s		Units		$’s		Units		$’s		Units		$’s
Mid-Atlantic		833	$	175.0		994	$	226.0		2,241	$	463.7		2,637	$	588.0
Midwest		468		118.2		534		147.3		1,335		335.3		1,421		385.8
Southeast		1,099		194.8		1,360		281.9		3,025		519.8		3,763		750.8
Southwest		3,581		607.7		4,565		769.3		9,938		1,677.9		12,938		2,140.3
West		3,024		1,013.2		3,597		1,271.0		7,868		2,556.5		9,356		3,215.8
		9,005	$	2,108.9		11,050	$	2,695.5		24,407	$	5,553.2		30,115	$	7,080.7

SALES CONTRACT BACKLOG

	As of June 30
	2003				2004
	Units		$'s		Units		$'s
Mid-Atlantic		1,678	$	378.3		1,861	$	523.5
Midwest		1,035		288.9		1,177		355.5
Southeast		1,958		377.9		2,730		624.0
Southwest		6,809		1,134.4		7,415		1,280.8
West		5,421		1,848.9		6,348		2,372.7
		16,901	$	4,028.4		19,531	$	5,156.5