D. R. Horton, Inc. (Form: 8-K)

Stacey Dwyer, EVP
301 Commerce Street, Ste. 500, Fort Worth, Texas 76102
817-390-8200
April 19, 2005

D.R. HORTON, INC., AMERICA’S BUILDER, REPORTS A 56% INCREASE IN FISCAL YEAR 2005 SECOND QUARTER NET INCOME

•

Sales order backlog increased 33% to all-time record $6.2 billion (21,205 homes)

•

Homebuilding debt to total capitalization (net of cash) improved 80 basis points to 42.5%

FORT WORTH, TEXAS – D.R. Horton, Inc. (NYSE:DHI), the largest builder in the United States, Tuesday (April 19, 2005), reported that net income for the second fiscal quarter ended March 31, 2005 increased 56% to $294.0 million ($0.92 per diluted share), compared to $188.6 million ($0.60 per diluted share) for the quarter ended March 31, 2004. Second quarter consolidated revenue increased 23% to $2.9 billion from $2.3 billion in the year ago quarter. Homes closed for the second quarter increased 8% to 10,601 homes from 9,823 homes a year ago.

For the six months ended March 31, 2005, net income increased 43% to $535.0 million ($1.68 per diluted share), compared to $374.2 million ($1.18 per diluted share) for the same period of fiscal 2004. Consolidated revenue for the six months increased 19% to $5.4 billion, from $4.5 billion for the same period of fiscal 2004. Homes closed increased 6% to 20,281 homes from 19,065 homes for the same period of fiscal 2004.

The Company reported a record March 31, 2005 sales order backlog of $6.2 billion (21,205 homes), an increase of 33% from $4.6 billion (18,137 homes) a year ago. As previously reported, net sales orders for the second quarter ended March 31, 2005 increased 23% to $4.1 billion (14,401 homes), compared to $3.3 billion (13,480 homes) for the same quarter of fiscal 2004. Net sales orders for the first six months of fiscal 2005 increased 26% to $6.8 billion (24,302 homes), compared to $5.4 billion (21,714 homes) for the same period of fiscal 2004.

The Company expects diluted earnings per share for the quarter ended June 30, 2005 to be in the range of $0.98 to $1.02 (assuming approximately 319 million diluted shares). The Company is raising its guidance for fiscal year 2005 to be in the range of $3.95 to $4.00 (assuming approximately 318.5 million diluted shares). This range represents a 28% to 29% increase in earnings per share over the $3.09 reported in fiscal year 2004, and is based on projected consolidated revenue of more than $13.0 billion (approximately 50,000 homes closed).

D.R. Horton’s earnings release conference call will be Tuesday, April 19, 2005 at 11:00 a.m. EDT. 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 second quarter performance, where once again we grew our net income at a faster pace than our revenues. We are especially proud that we have achieved these results organically by continuing to increase our national market share. The Company’s continued sales momentum combined with our record $6.2 billion sales order backlog, provide a solid foundation for achieving our 28^th consecutive year of record revenues and earnings in fiscal year 2005.”

D.R. Horton, Inc., America’s Builder, is the largest homebuilder in the United States, delivering more than 43,000 homes in its fiscal year ended September 30, 2004. Founded in 1978 in Fort Worth, Texas, D.R. Horton has expanded its presence to include 67 markets in 21 states in the Midwest, Mid-Atlantic, Southeast, Southwest and Western regions of the United States. The Company is engaged in the construction and sale of high quality homes with sales prices ranging from $80,000 to over $900,000. D.R. Horton 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 (i) the Company’s expectation of diluted earnings per share for the quarter ended June 30, 2005 to be in the range of $0.98 to $1.02 (ii) the Company’s expectation of diluted earnings per share for the 2005 fiscal year to be in the range of $3.95 to $4.00 based on projected consolidated revenue of more than $13.0 billion (approximately 50,000 homes closed), and (iii) the Company achieving its 28^th consecutive year of record revenues and earnings in fiscal year 2005. 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; warranty and product liability claims; our substantial debt; governmental regulations and environmental matters; 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						Six months ended
	March 31,						March 31,
	2004			2005			2004			2005
	(In millions, except per share amounts)
Homebuilding:
Revenues:
Home sales	$	2,250.5		$	2,706.8		$	4,385.1		$	5,155.8
Land/lot sales		42.7			120.1			71.7			145.2

		2,293.2			2,826.9			4,456.8			5,301.0

Cost of sales:
Home sales		1,748.8			2,034.7			3,403.1			3,866.1
Land/lot sales		27.3			72.7			43.4			88.4

		1,776.1			2,107.4			3,446.5			3,954.5

Gross profit:
Home sales		501.7			672.1			982.0			1,289.7
Land/lot sales		15.4			47.4			28.3			56.8

		517.1			719.5			1,010.3			1,346.5

Selling, general and administrative expense		222.7			267.0			435.2			524.7
Interest expense		3.1			—			3.3			-
Other (income) expense		2.8			(5.9	)		0.2			(10.9	)

Operating income from Homebuilding		288.5			458.4			571.6			832.7

Financial Services:
Revenues		42.0			49.8			83.0			95.8
General and administrative expense		26.2			33.9			51.7			66.6
Interest expense		1.1			2.6			2.4			5.0
Other (income)		(3.4	)		(6.3	)		(7.9	)		(13.0	)

Operating income from Financial Services		18.1			19.6			36.8			37.2

Income before income taxes		306.6			478.0			608.4			869.9
Provision for income taxes		118.0			184.0			234.2			334.9

Net income	$	188.6		$	294.0		$	374.2		$	535.0

Basic:
Net income per share	$	0.61		$	0.94		$	1.21		$	1.72

Weighted average number of common shares*		310.4			312.0			310.1			311.8

Diluted:
Net income per share	$	0.60		$	0.92		$	1.18		$	1.68

Weighted average number of common shares*		316.1			318.0			315.9			317.6

Other Consolidated Financial Data
Interest amortized to home and land/lot cost of sales	$	54.9		$	56.0		$	107.7		$	98.9

Depreciation and amortization	$	10.4		$	12.9		$	21.9		$	26.8

Interest incurred	$	64.2		$	80.0		$	120.4		$	140.9

* adjusted for the four-for-three-stock split of March 2005


	As of March 31, 2005
	(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents	$	526.1
Inventories:
Construction in progress and finished homes		3,584.5
Residential lots — developed and under development		4,121.2
Land held for development		6.3
Consolidated land inventory not owned		214.7

		7,926.7
Property and equipment (net)		94.0
Earnest money deposits and other assets		690.6
Goodwill		578.9

		9,816.3

Financial Services:
Cash and cash equivalents		46.7
Mortgage loans held for sale		648.3
Other assets		29.2

		724.2

	$	10,540.5

LIABILITIES
Homebuilding:
Accounts payable	$	718.2
Accrued and other liabilities		775.2
Liabilities associated with consolidated land inventory not owned		10.4
Notes payable		3,823.6
		5,327.4

Financial Services:
Accounts payable and other liabilities		13.4
Notes payable		517.0

		530.4

		5,857.8

Minority interests		213.3

STOCKHOLDERS’ EQUITY
Common stock		3.1
Additional capital		1,613.1
Retained earnings		2,912.1
Treasury stock (at cost)		(58.9	)

		4,469.4

	$	10,540.5


	Three Months Ended March 31,								Six Months Ended March 31,
	2004				2005				2004				2005
	Units		Dollars		Units		Dollars		Units		Dollars		Units		Dollars

Mid-Atlantic		1,034	$	277.3		1,263	$	346.2		1,749	$	444.0		2,300	$	623.1
Midwest		620		175.1		877		224.4		1,031		300.3		1,306		349.2
Southeast		1,758		365.0		1,974		498.0		2,931		616.6		3,733		908.6
Southwest		5,435		906.1		5,638		1,109.8		8,715		1,460.9		9,576		1,848.6
West		4,633		1,610.3		4,649		1,920.2		7,288		2,545.7		7,387		3,024.9

		13,480	$	3,333.8		14,401	$	4,098.6		21,714	$	5,367.5		24,302	$	6,754.4


	Three Months Ended March 31,								Six Months Ended March 31,
	2004				2005				2004				2005
	Units		Dollars		Units		Dollars		Units		Dollars		Units		Dollars

Mid-Atlantic		801	$	180.5		870	$	209.9		1,643	$	362.0		1,703	$	418.5
Midwest		443		119.2		436		113.0		887		238.5		855		224.5
Southeast		1,282		251.5		1,703		383.3		2,403		469.0		3,097		689.4
Southwest		4,432		729.5		4,549		807.7		8,373		1,370.9		8,653		1,512.7
West		2,865		969.8		3,043		1,192.9		5,759		1,944.7		5,973		2,310.7

		9,823	$	2,250.5		10,601	$	2,706.8		19,065	$	4,385.1		20,281	$	5,155.8


Delaware	1-14122	75-2386963
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)

301 Commerce Street, Suite 500, Fort Worth, Texas		76102
_________________________________ (Address of principal executive offices)		___________ (Zip Code)


	D. R. Horton, Inc.

April 19, 2005	By:	/s/ Bill W. Wheat

		Name: Bill W. Wheat
		Title: Executive Vice President & Chief Financial Officer


Exhibit No.		Description

99.1		Press Release dated April 19, 2005 (filed with this report).


	As of March 31,
	2004				2005
	Units		Dollars		Units		Dollars

Mid-Atlantic		1,708	$	452.8		2,337	$	696.8
Midwest		1,125		340.7		1,312		394.4
Southeast		2,351		511.8		3,623		917.7
Southwest		7,018		1,210.9		7,555		1,531.2
West		5,935		2,119.5		6,378		2,626.9

		18,137	$	4,635.7		21,205	$	6,167.0


Date of Report (Date of Earliest Event Reported):		April 19, 2005


Registrant’s telephone number, including area code:		817-390-8200