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

Stacey Dwyer, EVP
301 Commerce Street, Ste. 500, Fort Worth, Texas 76102
817-390-8200
July 21, 2005

D.R. HORTON, INC., AMERICA’S BUILDER, REPORTS A 48% INCREASE IN THIRD QUARTER NET INCOME AND A RECORD $7.0 BILLION SALES ORDER BACKLOG AT JUNE 30, 2005

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Homebuilding debt to total capitalization (net of cash) improved 120 basis points to 42.4%

FORT WORTH, TEXAS – D.R. Horton, Inc. (NYSE:DHI), the largest homebuilder in the United States, Thursday (July 21, 2005), reported that net income for the quarter ended June 30, 2005 increased 48% to $371.7 million ($1.17 per diluted share), from $251.3 million ($0.80 per diluted share) for the same quarter in fiscal year 2004. Third quarter consolidated revenue increased 21% to $3.4 billion, from $2.8 billion in the third quarter of fiscal year 2004. Homes closed in the third quarter increased 11% to 12,269 homes from 11,050 homes in the year ago quarter.

For the nine months ended June 30, 2005, net income increased 45% to $906.7 million ($2.85 per diluted share), compared to $625.5 million ($1.98 per diluted share) for the same period of fiscal year 2004. Consolidated revenue for the nine months increased 20% to $8.8 billion, from $7.3 billion for the same period of fiscal year 2004. Homes closed in the nine-month period increased 8% to 32,550 homes from 30,115 homes for the same period of fiscal year 2004.

As previously reported, net sales orders for the third quarter ended June 30, 2005 were the highest quarterly sales in the Company’s history, increasing 29% to $4.1 billion (14,980 homes), compared to $3.2 billion (12,444 homes) for the same quarter of fiscal year 2004. Net sales orders for the first nine months of fiscal 2005 increased 27% to $10.9 billion (39,282 homes), compared to $8.6 billion (34,158 homes) for the same period of fiscal 2004. The Company’s backlog of homes under contract at June 30, 2005 totaled a record $7.0 billion (23,916 homes), up 36% from $5.2 billion (19,531 homes) at June 30, 2004.

The Company is increasing its earnings per share guidance for the fiscal year ending September 30, 2005 to be in the range of $4.35 to $4.40 (based on approximately 318 million diluted shares). This represents a 41% to 42% increase over the $3.09 per diluted share reported in fiscal year 2004. The earnings guidance is based on approximately 50,000 homes closed and more than $13.0 billion in consolidated revenue.

The Company expects diluted earnings per share for the quarter ending December 31, 2005 to be in the range of $0.90 to $0.95 (based on approximately 319.5 million diluted shares), an 18% to 25% increase over the $0.76 reported in the first quarter of fiscal year 2005. For fiscal year 2006, the Company is issuing preliminary guidance of $5.00 to $5.05 based on approximately 58,000 homes closed and approximately $15.0 billion in consolidated revenue.

The Company will host a conference call Thursday, July 21^st 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, “It has been another exciting quarter for D.R. Horton, America’s Builder, and its employees. Our track record and continued strong performance have been acknowledged by our recent inclusion in the S&P 500 Index. In addition, the Company set all-time quarterly records for net income, gross profit margin, sales units, sales dollars and sales order backlog. The Company also set an industry record for quarterly sales with 14,980 homes sold, as each of our regions reported double-digit increases in both sales dollars and units.

“Our record backlog and continued sales momentum ensure that fiscal year 2005 will be our 28^th consecutive year of increased growth and profitability, and position the Company for a strong start to another record year in fiscal 2006.”

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 71 markets in 23 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 (a) fiscal year 2005 to be in the range of $4.35 to $4.40 per diluted share based on 50,000 homes closed and more than $13.0 billion in consolidated revenues, (b) the quarter ending December 31, 2005 to be in the range of $0.90 to $0.95 per diluted share and (c) fiscal year 2006 to be in the range of $5.00 to $5.05 per diluted share based on approximately 58,000 homes closed and approximately $15.0 billion in consolidated revenue; and (ii) the Company’s assurances, based on its record backlog and continued sales momentum, (a) that fiscal year 2005 will be another consecutive year of increased growth and profitability and (b) that the Company is positioned for a strong start to another record year in fiscal year 2006. 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; competitive conditions within the industry; warranty and product liability claims; the Company’s substantial debt; the availability of capital to the Company on favorable terms; and the Company’s ability to effect its growth strategies successfully. 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.


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2004			2005			2004			2005
	(In millions, except per share amounts)
Homebuilding:

Revenues:
Home sales	$	2,695.5		$	3,277.1		$	7,080.7		$	8,432.9
Land/lot sales		46.2			32.4			117.8			177.5

		2,741.7			3,309.5			7,198.5			8,610.4


Cost of sales:
Home sales		2,086.8			2,413.7			5,490.0			6,279.8
Land/lot sales		29.1			17.0			72.4			105.4

		2,115.9			2,430.7			5,562.4			6,385.2


Gross profit:
Home sales		608.7			863.4			1,590.7			2,153.1
Land/lot sales		17.1			15.4			45.4			72.1

		625.8			878.8			1,636.1			2,225.2


Selling, general and administrative expense		244.3			302.0			679.5			826.7
Interest expense		—			—			3.3			—
Other (income)		(7.4	)		(0.5	)		(7.1	)		(11.4	)

Operating income from Homebuilding		388.9			577.3			960.4			1,409.9

Financial Services:
Revenues		48.7			60.7			131.7			156.5
General and administrative expense		32.2			38.5			83.8			105.1
Interest expense		1.6			4.1			4.0			9.1
Other (income)		(4.8	)		(9.0	)		(12.7	)		(22.0	)

Operating income from Financial Services		19.7			27.1			56.6			64.3

Income before income taxes	$	408.6		$	604.4		$	1,017.0		$	1,474.2
Provision for income taxes		157.3			232.7			391.5			567.5

Net income	$	251.3		$	371.7		$	625.5		$	906.7

Basic:
Net income per share	$	0.81		$	1.19		$	2.02		$	2.91

Weighted average number of common shares*		310.7			312.4			310.3			312.0

Diluted:
Net income per share	$	0.80		$	1.17		$	1.98		$	2.85

Weighted average number of common shares*		316.1			318.3			316.0			317.8

Other Consolidated Financial Data:
Interest amortized to home and land/lot cost of sales	$	65.4		$	59.7		$	173.1		$	158.6

Depreciation and amortization	$	12.5		$	12.4		$	34.4		$	39.2

Interest incurred	$	61.3		$	73.0		$	181.7		$	213.9

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


	As of June 30,
	2005
	(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents	$	109.8

Inventories:
Construction in progress and finished homes		3,945.3
Residential lots — developed and under development		4,485.6
Land held for development		6.3
Consolidated land inventory not owned		185.2

		8,622.4
Property and equipment (net)		97.8
Earnest money deposits and other assets		706.7
Goodwill		578.9

		10,115.6

Financial Services:
Cash and cash equivalents		62.0
Mortgage loans held for sale		828.7
Other assets		38.2

		928.9

	$	11,044.5

LIABILITIES
Homebuilding:
Accounts payable	$	722.6
Accrued expenses and other liabilities		929.3
Notes payable		3,654.7

		5,306.6

Financial Services:
Accounts payable and other liabilities		16.8
Notes payable		708.4

		725.2

		6,031.8

Minority interests		192.4

STOCKHOLDERS’ EQUITY
Common stock		3.2
Additional capital		1,620.3
Retained earnings		3,255.7
Treasury stock (at cost)		(58.9	)

		4,820.3

	$	11,044.5


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.

July 21, 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 July 21, 2005 (filed with this report).


	NET SALES ORDERS
	Three Months Ended June 30,
	2004				2005
	Units		Dollars		Units		Dollars
Mid-Atlantic		1,147	$	296.7		1,453	$	381.6
Midwest		586		162.2		952		254.5
Southeast		1,739		394.1		2,346		577.3
Southwest		4,962		839.2		5,807		1,158.5
West		4,010		1,524.1		4,422		1,762.9

		12,444	$	3,216.3		14,980	$	4,134.8


	Nine Months Ended June 30,
	2004				2005
	Units		Dollars		Units		Dollars
Mid-Atlantic		2,896	$	740.6		3,753	$	1,004.7
Midwest		1,617		462.5		2,258		603.8
Southeast		4,670		1,010.7		6,079		1,485.8
Southwest		13,677		2,300.2		15,383		3,007.1
West		11,298		4,069.8		11,809		4,787.8

		34,158	$	8,583.8		39,282	$	10,889.2


Date of Report (Date of Earliest Event Reported):		July 21, 2005


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


	HOMES CLOSED
	Three Months Ended June 30,
	2004				2005
	Units		Dollars		Units		Dollars
Mid-Atlantic		994	$	226.0		978	$	253.1
Midwest		534		147.3		563		146.7
Southeast		1,360		281.9		1,942		447.9
Southwest		4,565		769.3		4,819		892.8
West		3,597		1,271.0		3,967		1,536.6

		11,050	$	2,695.5		12,269	$	3,277.1


	SALES ORDER BACKLOG
	As of June 30,
	2004				2005
	Units		Dollars		Units		Dollars
Mid-Atlantic		1,861	$	523.5		2,812	$	825.3
Midwest		1,177		355.5		1,701		502.3
Southeast		2,730		624.0		4,027		1,047.0
Southwest		7,415		1,280.8		8,543		1,796.9
West		6,348		2,372.7		6,833		2,853.2

		19,531	$	5,156.5		23,916	$	7,024.7


Quarter Highlights


	Nine Months Ended June 30,
	2004				2005
	Units		Dollars		Units		Dollars
Mid-Atlantic		2,637	$	588.0		2,681	$	671.6
Midwest		1,421		385.8		1,418		371.2
Southeast		3,763		750.8		5,039		1,137.3
Southwest		12,938		2,140.3		13,472		2,405.5
West		9,356		3,215.8		9,940		3,847.3

		30,115	$	7,080.7		32,550	$	8,432.9