D.R. Horton, Inc., America’s Builder, Reports Fiscal 2021 Second Quarter Earnings and Declares Quarterly Dividend of $0.20 Per Share
D.R. Horton reported robust fiscal 2021 Q2 results, with net income per diluted share surging 95% to $2.53 and total net income rising 93% to $929.5 million. Revenues reached $6.4 billion, a 43% increase, while pre-tax income jumped 90% to $1.2 billion, marking a profit margin of 18.3%. Homes closed increased 36% to 19,701, and net sales orders rose 35% to 27,059. The company repurchased 4.5 million shares for $350.4 million and ended Q2 with $1.9 billion in cash. Guidance for FY2021 estimates revenues between $26.8 and $27.5 billion, with homes closed projected at 82,500 to 84,500.
- Net income per diluted share surged 95% to $2.53.
- Consolidated revenues rose 43% to $6.4 billion.
- Pre-tax income increased 90% to $1.2 billion.
- Homes closed increased 36% to 19,701.
- Net sales orders boosted by 35% to 27,059 homes.
- Share repurchases totaled 4.5 million shares for $350.4 million.
- Cancellation rate for sales orders remains high at 15%.
D.R. Horton, Inc. (NYSE:DHI):
Fiscal 2021 Second Quarter Highlights - comparisons to the prior year quarter
-
Net income per diluted share increased
95% to$2.53 -
Net income attributable to D.R. Horton increased
93% to$929.5 million -
Consolidated revenues increased
43% to$6.4 billion -
Consolidated pre-tax income increased
90% to$1.2 billion -
Consolidated pre-tax profit margin improved 450 basis points to
18.3% -
Homes closed increased
36% to 19,701 homes and41% in value to$6.2 billion -
Net sales orders increased
35% to 27,059 homes and47% in value to$8.8 billion -
Repurchased 4.5 million shares of common stock for
$350.4 million
D.R. Horton, Inc. (NYSE:DHI), America’s Builder, today reported that net income per common share attributable to D.R. Horton for its second fiscal quarter ended March 31, 2021 increased
For the six months ended March 31, 2021, net income per common share attributable to D.R. Horton increased
Net sales orders for the second quarter ended March 31, 2021 increased
At March 31, 2021, the Company had 46,100 homes in inventory, of which 12,200 were unsold. 700 of the Company’s unsold homes at March 31, 2021 were completed. The Company’s homebuilding land and lot portfolio totaled 486,700 lots at the end of the quarter, of which
The Company's return on equity (ROE) was
The Company ended the second quarter with
Donald R. Horton, Chairman of the Board, said, “The D.R. Horton team delivered strong results in the second fiscal quarter of 2021, highlighted by EPS increasing
“Housing market conditions remain very robust, and we are focused on maximizing returns and improving capital efficiency in each of our communities while increasing our market share. Our strong balance sheet, liquidity and low leverage provide us with significant financial flexibility. We plan to maintain our disciplined approach to investing capital to enhance the long-term value of our company, including returning capital to our shareholders through both dividends and share repurchases on a consistent basis.”
Guidance
Based on current market conditions and the Company’s results for the first six months of fiscal 2021, D.R. Horton is updating its fiscal 2021 guidance as follows:
-
Consolidated revenues of
$26.8 billion to$27.5 billion - Homes closed between 82,500 homes and 84,500 homes
-
Income tax rate in a range of
22% to23% for the third and fourth quarters of fiscal 2021 -
Outstanding share count at the end of fiscal 2021 approximately
1.5% lower than at the end of fiscal 2020
The Company plans to also provide guidance for its third quarter of fiscal 2021 on its conference call today.
Forestar
Forestar Group Inc. (NYSE:FOR) (“Forestar”), a majority-owned subsidiary of D.R. Horton, is a publicly-traded residential lot development company, which currently operates in 54 markets and 22 states. Forestar’s results of operations for the periods presented are fully consolidated in the Company’s financial statements with the percentage not owned by the Company reported as noncontrolling interests.
For the second quarter ended March 31, 2021, Forestar sold 3,588 lots and generated
Financial Services
For the second quarter ended March 31, 2021, financial services revenues increased
Multi-Family Rental Operations
At March 31, 2021, the Company’s multi-family rental operations had eight projects under active construction and four projects that were substantially complete and in the lease-up phase. These 12 projects represent 3,760 multi-family units. There were no sales of multi-family rental properties during the quarter or six months ended March 31, 2021. During the six months ended March 31, 2020, two properties were sold for a total of
Single-Family Rental Operations
During fiscal 2020, the Company began constructing and leasing homes as single-family rental communities. After these rental communities are constructed and achieve a stabilized level of leased occupancy, the Company generally expects to market each community for a bulk sale of homes. There were no sales of single-family rental communities during the quarter ended March 31, 2021. During the six months ended March 31, 2021, the Company completed its first sale of a single-family rental community representing 124 homes for
Dividends
During the second quarter of fiscal 2021, the Company paid cash dividends of
Share Repurchases
The Company repurchased 4.5 million shares of common stock for
COVID-19
During March 2020, the impacts of the COVID-19 pandemic (C-19) and the related widespread reductions in economic activity across the United States began to adversely affect the Company’s business. However, residential construction and financial services are designated as essential businesses as part of critical infrastructure in almost all of the municipalities across the U.S. where the Company operates. The Company implemented operational protocols to comply with social distancing and other health and safety guidelines as required by federal, state and local government agencies, taking into consideration guidelines of the Centers for Disease Control and Prevention and other public health authorities.
The Company believes its strong balance sheet and liquidity position provide it with flexibility to operate effectively through changing economic conditions. The Company plans to continue to generate strong cash flows from its homebuilding operations and manage its product offerings, incentives, home pricing, sales pace and inventory levels to optimize the return on its inventory investments in each of its communities based on local housing market conditions.
Conference Call and Webcast Details
The Company will host a conference call today (Thursday, April 22) at 8:30 a.m. Eastern Time. The dial-in number is 877-407-8033, and the call will also be webcast from the Company’s website at investor.drhorton.com.
About D.R. Horton, Inc.
D.R. Horton, Inc., America’s Builder, has been the largest homebuilder by volume in the United States since 2002. Founded in 1978 in Fort Worth, Texas, D.R. Horton has operations in 91 markets in 29 states across the United States and closed 76,330 homes in the twelve-month period ended March 31, 2021. The Company is engaged in the construction and sale of high-quality homes through its diverse brand portfolio that includes D.R. Horton, Emerald Homes, Express Homes and Freedom Homes with sales prices ranging from
Forward-Looking Statements
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 include that we are focused on maximizing returns and improving capital efficiency in each of our communities while increasing our market share; our strong balance sheet, liquidity and low leverage provide us with significant financial flexibility; and we plan to maintain our disciplined approach to investing capital to enhance the long-term value of our company, including returning capital to our shareholders through both dividends and share repurchases on a consistent basis. The forward-looking statements also include all commentary in the Guidance and C-19 sections.
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: the effects of public health issues such as a major epidemic or pandemic, including the impact of C-19 on the economy and our businesses; the cyclical nature of the homebuilding and lot development industries and changes in economic, real estate and other conditions; constriction of the credit and public capital markets, which could limit our ability to access capital and increase our costs of capital; reductions in the availability of mortgage financing provided by government agencies, changes in government financing programs, a decrease in our ability to sell mortgage loans on attractive terms or an increase in mortgage interest rates; the risks associated with our land and lot inventory; our ability to effect our growth strategies, acquisitions or investments successfully; the impact of an inflationary, deflationary or higher interest rate environment; home warranty and construction defect claims; the effects of health and safety incidents; supply shortages and other risks of acquiring land, building materials and skilled labor; reductions in the availability of performance bonds; increases in the costs of owning a home; the effects of governmental regulations and environmental matters on our homebuilding and land development operations; the effects of governmental regulations on our financial services operations; competitive conditions within the homebuilding, lot development and financial services industries; our ability to manage and service our debt and comply with related debt covenants, restrictions and limitations; the effects of negative publicity; the effects of the loss of key personnel; and information technology failures, data security breaches and our ability to satisfy privacy and data protection laws and regulations. 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 its most recent quarterly report on Form 10-Q, both of which are filed with the Securities and Exchange Commission.
D.R. HORTON, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
|||||||
|
March 31,
|
|
September 30,
|
||||
|
(In millions) |
||||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
2,205.2 |
|
|
$ |
3,018.5 |
|
Restricted cash |
26.7 |
|
|
21.6 |
|
||
Total cash, cash equivalents and restricted cash |
2,231.9 |
|
|
3,040.1 |
|
||
Inventories: |
|
|
|
||||
Construction in progress and finished homes |
7,300.1 |
|
|
5,984.1 |
|
||
Residential land and lots — developed, under development, held for development and held for sale |
7,176.2 |
|
|
6,253.3 |
|
||
Total inventory |
14,476.3 |
|
|
12,237.4 |
|
||
Mortgage loans held for sale |
1,755.8 |
|
|
1,529.0 |
|
||
Deferred income taxes, net of valuation allowance of |
142.8 |
|
|
144.9 |
|
||
Property and equipment, net |
895.0 |
|
|
683.7 |
|
||
Other assets |
1,418.5 |
|
|
1,113.7 |
|
||
Goodwill |
163.5 |
|
|
163.5 |
|
||
Total assets |
$ |
21,083.8 |
|
|
$ |
18,912.3 |
|
LIABILITIES |
|
|
|
||||
Accounts payable |
$ |
1,137.4 |
|
|
$ |
900.5 |
|
Accrued expenses and other liabilities |
2,198.1 |
|
|
1,607.0 |
|
||
Notes payable |
4,472.3 |
|
|
4,283.3 |
|
||
Total liabilities |
7,807.8 |
|
|
6,790.8 |
|
||
EQUITY |
|
|
|
||||
Common stock, $.01 par value, 1,000,000,000 shares authorized, 396,696,502 shares issued and 360,479,511 shares outstanding at March 31, 2021 and 394,741,349 shares issued and 363,999,982 shares outstanding at September 30, 2020 |
4.0 |
|
|
3.9 |
|
||
Additional paid-in capital |
3,208.4 |
|
|
3,240.9 |
|
||
Retained earnings |
11,333.5 |
|
|
9,757.8 |
|
||
Treasury stock, 36,216,991 shares and 30,741,367 shares at March 31, 2021 and September 30, 2020, respectively, at cost |
(1,582.8) |
|
|
(1,162.6) |
|
||
Stockholders’ equity |
12,963.1 |
|
|
11,840.0 |
|
||
Noncontrolling interests |
312.9 |
|
|
281.5 |
|
||
Total equity |
13,276.0 |
|
|
12,121.5 |
|
||
Total liabilities and equity |
$ |
21,083.8 |
|
|
$ |
18,912.3 |
|
D.R. HORTON, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||||||||||
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
(In millions, except per share data) |
||||||||||||||
Revenues |
$ |
6,446.9 |
|
|
$ |
4,500.0 |
|
|
$ |
12,380.3 |
|
|
$ |
8,520.7 |
|
Cost of sales |
4,650.9 |
|
|
3,450.8 |
|
|
8,983.5 |
|
|
6,535.0 |
|
||||
Selling, general and administrative expense |
621.5 |
|
|
466.8 |
|
|
1,207.4 |
|
|
922.6 |
|
||||
Gain on sale of assets |
— |
|
|
(28.5) |
|
|
(14.0) |
|
|
(59.5) |
|
||||
Other (income) expense |
(5.4) |
|
|
(10.4) |
|
|
(10.8) |
|
|
(21.9) |
|
||||
Income before income taxes |
1,179.9 |
|
|
621.3 |
|
|
2,214.2 |
|
|
1,144.5 |
|
||||
Income tax expense |
246.0 |
|
|
137.3 |
|
|
485.1 |
|
|
228.1 |
|
||||
Net income |
933.9 |
|
|
484.0 |
|
|
1,729.1 |
|
|
916.4 |
|
||||
Net income attributable to noncontrolling interests |
4.4 |
|
|
1.3 |
|
|
7.8 |
|
|
2.4 |
|
||||
Net income attributable to D.R. Horton, Inc. |
$ |
929.5 |
|
|
$ |
482.7 |
|
|
$ |
1,721.3 |
|
|
$ |
914.0 |
|
|
|
|
|
|
|
|
|
||||||||
Basic net income per common share attributable to D.R. Horton, Inc. |
$ |
2.57 |
|
|
$ |
1.32 |
|
|
$ |
4.74 |
|
|
$ |
2.49 |
|
Weighted average number of common shares |
362.3 |
|
|
365.8 |
|
|
363.4 |
|
|
367.1 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted net income per common share attributable to D.R. Horton, Inc. |
$ |
2.53 |
|
|
$ |
1.30 |
|
|
$ |
4.67 |
|
|
$ |
2.46 |
|
Adjusted weighted average number of common shares |
367.2 |
|
|
370.1 |
|
|
368.6 |
|
|
371.8 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Other Consolidated Financial Data |
|
|
|
|
|
|
|
||||||||
Interest charged to cost of sales |
$ |
34.4 |
|
|
$ |
29.2 |
|
|
$ |
67.4 |
|
|
$ |
54.9 |
|
Depreciation and amortization |
$ |
18.9 |
|
|
$ |
19.8 |
|
|
$ |
39.3 |
|
|
$ |
38.8 |
|
Interest incurred |
$ |
37.9 |
|
|
$ |
37.6 |
|
|
$ |
78.3 |
|
|
$ |
75.3 |
|
D.R. HORTON, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
|||||||
|
Six Months Ended March 31, |
||||||
|
2021 |
|
2020 |
||||
|
(In millions) |
||||||
OPERATING ACTIVITIES |
|
|
|
||||
Net income |
$ |
1,729.1 |
|
|
$ |
916.4 |
|
Adjustments to reconcile net income to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
39.3 |
|
|
38.8 |
|
||
Amortization of discounts and fees |
4.8 |
|
|
5.8 |
|
||
Stock-based compensation expense |
47.1 |
|
|
37.9 |
|
||
Equity in earnings of unconsolidated entities |
(1.0) |
|
|
(0.9) |
|
||
Deferred income taxes |
2.6 |
|
|
10.0 |
|
||
Inventory and land option charges |
12.1 |
|
|
12.8 |
|
||
Gain on sale of assets |
(14.0) |
|
|
(59.5) |
|
||
Changes in operating assets and liabilities: |
|
|
|
||||
Increase in construction in progress and finished homes |
(1,295.8) |
|
|
(724.4) |
|
||
Increase in residential land and lots – developed, under development, held for development and held for sale |
(975.2) |
|
|
(324.2) |
|
||
Increase in other assets |
(295.2) |
|
|
(153.1) |
|
||
Net increase in mortgage loans held for sale |
(226.8) |
|
|
(307.4) |
|
||
Increase in accounts payable, accrued expenses and other liabilities |
818.1 |
|
|
152.7 |
|
||
Net cash used in operating activities |
(154.9) |
|
|
(395.1) |
|
||
INVESTING ACTIVITIES |
|
|
|
||||
Expenditures for property and equipment |
(30.5) |
|
|
(47.6) |
|
||
Proceeds from sale of assets |
31.8 |
|
|
129.8 |
|
||
Expenditures related to rental properties |
(173.9) |
|
|
(113.0) |
|
||
Return of investment in unconsolidated entities |
2.2 |
|
|
2.4 |
|
||
Net principal increase of other mortgage loans and real estate owned |
(1.5) |
|
|
(0.6) |
|
||
Payments related to business acquisitions |
(24.2) |
|
|
(5.6) |
|
||
Net cash used in investing activities |
(196.1) |
|
|
(34.6) |
|
||
FINANCING ACTIVITIES |
|
|
|
||||
Proceeds from notes payable |
494.1 |
|
|
1,591.3 |
|
||
Repayment of notes payable |
(400.1) |
|
|
(918.9) |
|
||
Advances on mortgage repurchase facility, net |
70.9 |
|
|
297.6 |
|
||
Proceeds from stock associated with certain employee benefit plans |
5.6 |
|
|
12.9 |
|
||
Cash paid for shares withheld for taxes |
(82.9) |
|
|
(38.1) |
|
||
Cash dividends paid |
(145.6) |
|
|
(128.7) |
|
||
Repurchases of common stock |
(420.2) |
|
|
(360.4) |
|
||
Distributions to noncontrolling interests, net |
(0.1) |
|
|
(0.4) |
|
||
Net proceeds from issuance of Forestar common stock |
23.3 |
|
|
— |
|
||
Other financing activities |
(2.2) |
|
|
(2.3) |
|
||
Net cash (used in) provided by financing activities |
(457.2) |
|
|
453.0 |
|
||
Net (decrease) increase in cash, cash equivalents and restricted cash |
(808.2) |
|
|
23.3 |
|
||
Cash, cash equivalents and restricted cash at beginning of period |
3,040.1 |
|
|
1,514.0 |
|
||
Cash, cash equivalents and restricted cash at end of period |
$ |
2,231.9 |
|
|
$ |
1,537.3 |
|
D.R. HORTON, INC. AND SUBSIDIARIES SEGMENT INFORMATION (UNAUDITED) |
||||||||||||||||||||||||
|
|
March 31, 2021 |
||||||||||||||||||||||
|
|
Homebuilding |
|
Forestar (1) |
|
Financial
|
|
Other |
|
Eliminations
|
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents |
|
$ |
1,887.2 |
|
|
$ |
167.2 |
|
|
$ |
94.7 |
|
|
$ |
56.1 |
|
|
$ |
— |
|
|
$ |
2,205.2 |
|
Restricted cash |
|
14.0 |
|
|
— |
|
|
12.4 |
|
|
0.3 |
|
|
— |
|
|
26.7 |
|
||||||
Inventories: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction in progress and finished homes |
|
7,377.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
(77.3) |
|
|
7,300.1 |
|
||||||
Residential land and lots |
|
5,519.0 |
|
|
1,698.6 |
|
|
— |
|
|
— |
|
|
(41.4) |
|
|
7,176.2 |
|
||||||
|
|
12,896.4 |
|
|
1,698.6 |
|
|
— |
|
|
— |
|
|
(118.7) |
|
|
14,476.3 |
|
||||||
Mortgage loans held for sale |
|
— |
|
|
— |
|
|
1,755.8 |
|
|
— |
|
|
— |
|
|
1,755.8 |
|
||||||
Deferred income taxes, net |
|
143.5 |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.7) |
|
|
142.8 |
|
||||||
Property and equipment, net |
|
463.2 |
|
|
2.0 |
|
|
3.5 |
|
|
432.4 |
|
|
(6.1) |
|
|
895.0 |
|
||||||
Other assets |
|
1,245.3 |
|
|
31.1 |
|
|
188.9 |
|
|
58.7 |
|
|
(105.5) |
|
|
1,418.5 |
|
||||||
Goodwill |
|
134.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
29.2 |
|
|
163.5 |
|
||||||
|
|
$ |
16,783.9 |
|
|
$ |
1,898.9 |
|
|
$ |
2,055.3 |
|
|
$ |
547.5 |
|
|
$ |
(201.8) |
|
|
$ |
21,083.8 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable |
|
$ |
1,078.0 |
|
|
$ |
39.8 |
|
|
$ |
— |
|
|
$ |
19.6 |
|
|
$ |
— |
|
|
$ |
1,137.4 |
|
Accrued expenses and other liabilities |
|
1,881.2 |
|
|
260.0 |
|
|
195.4 |
|
|
13.2 |
|
|
(151.7) |
|
|
2,198.1 |
|
||||||
Notes payable |
|
2,616.9 |
|
|
654.6 |
|
|
1,203.5 |
|
|
— |
|
|
(2.7) |
|
|
4,472.3 |
|
||||||
|
|
$ |
5,576.1 |
|
|
$ |
954.4 |
|
|
$ |
1,398.9 |
|
|
$ |
32.8 |
|
|
$ |
(154.4) |
|
|
$ |
7,807.8 |
|
|
|
September 30, 2020 |
||||||||||||||||||||||
|
|
Homebuilding |
|
Forestar (1) |
|
Financial
|
|
Other |
|
Eliminations
|
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents |
|
$ |
2,551.1 |
|
|
$ |
394.3 |
|
|
$ |
55.6 |
|
|
$ |
17.5 |
|
|
$ |
— |
|
|
$ |
3,018.5 |
|
Restricted cash |
|
9.5 |
|
|
— |
|
|
11.9 |
|
|
0.2 |
|
|
— |
|
|
21.6 |
|
||||||
Inventories: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction in progress and finished homes |
|
6,037.5 |
|
|
— |
|
|
— |
|
|
— |
|
|
(53.4) |
|
|
5,984.1 |
|
||||||
Residential land and lots |
|
4,977.5 |
|
|
1,309.7 |
|
|
— |
|
|
— |
|
|
(33.9) |
|
|
6,253.3 |
|
||||||
|
|
11,015.0 |
|
|
1,309.7 |
|
|
— |
|
|
— |
|
|
(87.3) |
|
|
12,237.4 |
|
||||||
Mortgage loans held for sale |
|
— |
|
|
— |
|
|
1,529.0 |
|
|
— |
|
|
— |
|
|
1,529.0 |
|
||||||
Deferred income taxes, net |
|
142.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
2.6 |
|
|
144.9 |
|
||||||
Property and equipment, net |
|
372.8 |
|
|
1.1 |
|
|
3.9 |
|
|
308.9 |
|
|
(3.0) |
|
|
683.7 |
|
||||||
Other assets |
|
996.4 |
|
|
34.8 |
|
|
125.8 |
|
|
52.8 |
|
|
(96.1) |
|
|
1,113.7 |
|
||||||
Goodwill |
|
134.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
29.2 |
|
|
163.5 |
|
||||||
|
|
$ |
15,221.4 |
|
|
$ |
1,739.9 |
|
|
$ |
1,726.2 |
|
|
$ |
379.4 |
|
|
$ |
(154.6) |
|
|
$ |
18,912.3 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable |
|
$ |
859.3 |
|
|
$ |
29.2 |
|
|
$ |
— |
|
|
$ |
12.0 |
|
|
$ |
— |
|
|
$ |
900.5 |
|
Accrued expenses and other liabilities |
|
1,438.3 |
|
|
197.8 |
|
|
86.8 |
|
|
12.2 |
|
|
(128.1) |
|
|
1,607.0 |
|
||||||
Notes payable |
|
2,514.4 |
|
|
641.1 |
|
|
1,132.6 |
|
|
— |
|
|
(4.8) |
|
|
4,283.3 |
|
||||||
|
|
$ |
4,812.0 |
|
|
$ |
868.1 |
|
|
$ |
1,219.4 |
|
|
$ |
24.2 |
|
|
$ |
(132.9) |
|
|
$ |
6,790.8 |
|
___________________________
(1) |
Amounts are presented on Forestar’s historical cost basis. |
|
(2) |
Amounts primarily represent the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. |
D.R. HORTON, INC. AND SUBSIDIARIES SEGMENT INFORMATION (UNAUDITED) |
||||||||||||||||||||||||
|
|
Three Months Ended March 31, 2021 |
||||||||||||||||||||||
|
|
Homebuilding |
|
Forestar (1) |
|
Financial
|
|
Other |
|
Eliminations
|
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales |
|
$ |
6,170.4 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6,170.4 |
|
Land/lot sales and other |
|
17.3 |
|
|
287.1 |
|
|
— |
|
|
15.3 |
|
|
(268.3) |
|
|
51.4 |
|
||||||
Financial services |
|
— |
|
|
— |
|
|
225.1 |
|
|
— |
|
|
— |
|
|
225.1 |
|
||||||
|
|
6,187.7 |
|
|
287.1 |
|
|
225.1 |
|
|
15.3 |
|
|
(268.3) |
|
|
6,446.9 |
|
||||||
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales (3) |
|
4,652.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
(35.6) |
|
|
4,616.4 |
|
||||||
Land/lot sales and other |
|
12.7 |
|
|
233.2 |
|
|
— |
|
|
— |
|
|
(215.2) |
|
|
30.7 |
|
||||||
Inventory and land option charges |
|
3.2 |
|
|
0.6 |
|
|
— |
|
|
— |
|
|
— |
|
|
3.8 |
|
||||||
|
|
4,667.9 |
|
|
233.8 |
|
|
— |
|
|
— |
|
|
(250.8) |
|
|
4,650.9 |
|
||||||
Selling, general and administrative expense |
|
469.5 |
|
|
16.3 |
|
|
123.7 |
|
|
11.9 |
|
|
0.1 |
|
|
621.5 |
|
||||||
Other (income) expense |
|
(1.8) |
|
|
(0.6) |
|
|
(6.3) |
|
|
3.3 |
|
|
— |
|
|
(5.4) |
|
||||||
Income before income taxes |
|
$ |
1,052.1 |
|
|
$ |
37.6 |
|
|
$ |
107.7 |
|
|
$ |
0.1 |
|
|
$ |
(17.6) |
|
|
$ |
1,179.9 |
|
|
|
Six Months Ended March 31, 2021 |
||||||||||||||||||||||
|
|
Homebuilding |
|
Forestar (1) |
|
Financial
|
|
Other |
|
Eliminations
|
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales |
|
$ |
11,869.1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
11,869.1 |
|
Land/lot sales and other |
|
37.2 |
|
|
594.2 |
|
|
— |
|
|
30.0 |
|
|
(562.5) |
|
|
98.9 |
|
||||||
Financial services |
|
— |
|
|
— |
|
|
412.3 |
|
|
— |
|
|
— |
|
|
412.3 |
|
||||||
|
|
11,906.3 |
|
|
594.2 |
|
|
412.3 |
|
|
30.0 |
|
|
(562.5) |
|
|
12,380.3 |
|
||||||
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales (3) |
|
8,977.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
(63.3) |
|
|
8,913.8 |
|
||||||
Land/lot sales and other |
|
26.5 |
|
|
495.8 |
|
|
— |
|
|
— |
|
|
(464.7) |
|
|
57.6 |
|
||||||
Inventory and land option charges |
|
11.2 |
|
|
0.9 |
|
|
— |
|
|
— |
|
|
— |
|
|
12.1 |
|
||||||
|
|
9,014.8 |
|
|
496.7 |
|
|
— |
|
|
— |
|
|
(528.0) |
|
|
8,983.5 |
|
||||||
Selling, general and administrative expense |
|
920.6 |
|
|
31.8 |
|
|
233.3 |
|
|
21.5 |
|
|
0.2 |
|
|
1,207.4 |
|
||||||
Gain on sale of assets |
|
(13.1) |
|
|
— |
|
|
— |
|
|
(0.9) |
|
|
— |
|
|
(14.0) |
|
||||||
Other (income) expense |
|
(3.3) |
|
|
(1.1) |
|
|
(12.8) |
|
|
7.1 |
|
|
(0.7) |
|
|
(10.8) |
|
||||||
Income before income taxes |
|
$ |
1,987.3 |
|
|
$ |
66.8 |
|
|
$ |
191.8 |
|
|
$ |
2.3 |
|
|
$ |
(34.0) |
|
|
$ |
2,214.2 |
|
Summary Cash Flow Information |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash provided by (used in) operating activities |
|
$ |
138.0 |
|
|
$ |
(249.5) |
|
|
$ |
(32.3) |
|
|
$ |
4.2 |
|
|
$ |
(15.3) |
|
|
$ |
(154.9) |
|
_____________
(1) |
Results are presented on Forestar’s historical cost basis. |
|
(2) |
Amounts primarily represent the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. |
|
(3) |
Amount in the Eliminations and Other Adjustments column represents the profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers. |
D.R. HORTON, INC. AND SUBSIDIARIES SEGMENT INFORMATION (UNAUDITED) |
||||||||||||||||||||||||
|
|
Three Months Ended March 31, 2020 |
||||||||||||||||||||||
|
|
Homebuilding |
|
Forestar (1) |
|
Financial
|
|
Other |
|
Eliminations
|
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales |
|
$ |
4,363.3 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,363.3 |
|
Land/lot sales and other |
|
15.5 |
|
|
159.1 |
|
|
— |
|
|
9.5 |
|
|
(151.9) |
|
|
32.2 |
|
||||||
Financial services |
|
— |
|
|
— |
|
|
104.5 |
|
|
— |
|
|
— |
|
|
104.5 |
|
||||||
|
|
4,378.8 |
|
|
159.1 |
|
|
104.5 |
|
|
9.5 |
|
|
(151.9) |
|
|
4,500.0 |
|
||||||
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales (3) |
|
3,435.5 |
|
|
— |
|
|
— |
|
|
— |
|
|
(11.0) |
|
|
3,424.5 |
|
||||||
Land/lot sales and other |
|
11.3 |
|
|
136.5 |
|
|
— |
|
|
— |
|
|
(130.4) |
|
|
17.4 |
|
||||||
Inventory and land option charges |
|
8.8 |
|
|
0.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
8.9 |
|
||||||
|
|
3,455.6 |
|
|
136.6 |
|
|
— |
|
|
— |
|
|
(141.4) |
|
|
3,450.8 |
|
||||||
Selling, general and administrative expense |
|
361.8 |
|
|
11.2 |
|
|
85.9 |
|
|
7.8 |
|
|
0.1 |
|
|
466.8 |
|
||||||
Gain on sale of assets |
|
— |
|
|
(0.3) |
|
|
— |
|
|
(28.2) |
|
|
— |
|
|
(28.5) |
|
||||||
Other (income) expense |
|
(4.1) |
|
|
(2.1) |
|
|
(6.1) |
|
|
1.9 |
|
|
— |
|
|
(10.4) |
|
||||||
Income before income taxes |
|
$ |
565.5 |
|
|
$ |
13.7 |
|
|
$ |
24.7 |
|
|
$ |
28.0 |
|
|
$ |
(10.6) |
|
|
$ |
621.3 |
|
|
|
Six Months Ended March 31, 2020 |
||||||||||||||||||||||
|
|
Homebuilding |
|
Forestar (1) |
|
Financial
|
|
Other |
|
Eliminations
|
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales |
|
$ |
8,226.6 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
8,226.6 |
|
Land/lot sales and other |
|
35.2 |
|
|
406.4 |
|
|
— |
|
|
18.3 |
|
|
(373.2) |
|
|
86.7 |
|
||||||
Financial services |
|
— |
|
|
— |
|
|
207.4 |
|
|
— |
|
|
— |
|
|
207.4 |
|
||||||
|
|
8,261.8 |
|
|
406.4 |
|
|
207.4 |
|
|
18.3 |
|
|
(373.2) |
|
|
8,520.7 |
|
||||||
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales (3) |
|
6,487.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
(17.7) |
|
|
6,469.3 |
|
||||||
Land/lot sales and other |
|
24.7 |
|
|
352.8 |
|
|
— |
|
|
— |
|
|
(324.6) |
|
|
52.9 |
|
||||||
Inventory and land option charges |
|
12.4 |
|
|
0.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
12.8 |
|
||||||
|
|
6,524.1 |
|
|
353.2 |
|
|
— |
|
|
— |
|
|
(342.3) |
|
|
6,535.0 |
|
||||||
Selling, general and administrative expense |
|
720.2 |
|
|
21.7 |
|
|
163.8 |
|
|
16.7 |
|
|
0.2 |
|
|
922.6 |
|
||||||
Gain on sale of assets |
|
— |
|
|
(0.1) |
|
|
— |
|
|
(59.4) |
|
|
— |
|
|
(59.5) |
|
||||||
Other (income) expense |
|
(9.6) |
|
|
(4.2) |
|
|
(11.6) |
|
|
3.5 |
|
|
— |
|
|
(21.9) |
|
||||||
Income before income taxes |
|
$ |
1,027.1 |
|
|
$ |
35.8 |
|
|
$ |
55.2 |
|
|
$ |
57.5 |
|
|
$ |
(31.1) |
|
|
$ |
1,144.5 |
|
Summary Cash Flow Information |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash provided by (used in) operating activities |
|
$ |
52.1 |
|
|
$ |
(123.8) |
|
|
$ |
(312.1) |
|
|
$ |
5.5 |
|
|
$ |
(16.8) |
|
|
$ |
(395.1) |
|
_____________
(1) |
Results are presented on Forestar’s historical cost basis. |
|
(2) |
Amounts primarily represent the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. |
|
(3) |
Amount in the Eliminations and Other Adjustments column represents the profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers. |
D.R. HORTON, INC. |
||||||||||||||||||||||||
NET SALES ORDERS |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
||||||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||||||
|
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
||||||||
East |
|
3,287 |
|
$ |
1,074.3 |
|
|
2,749 |
|
$ |
803.8 |
|
|
5,921 |
|
$ |
1,936.0 |
|
|
4,590 |
|
$ |
1,350.5 |
|
Midwest |
|
1,770 |
|
691.7 |
|
|
1,426 |
|
506.4 |
|
|
3,025 |
|
1,167.5 |
|
|
2,140 |
|
761.7 |
|
||||
Southeast |
|
9,473 |
|
2,953.9 |
|
|
6,016 |
|
1,634.9 |
|
|
16,480 |
|
5,036.1 |
|
|
10,390 |
|
2,826.7 |
|
||||
South Central |
|
8,574 |
|
2,406.5 |
|
|
6,139 |
|
1,569.0 |
|
|
15,264 |
|
4,213.0 |
|
|
9,914 |
|
2,533.2 |
|
||||
Southwest |
|
1,318 |
|
442.4 |
|
|
942 |
|
267.6 |
|
|
2,220 |
|
727.0 |
|
|
1,609 |
|
467.3 |
|
||||
West |
|
2,637 |
|
1,280.2 |
|
|
2,815 |
|
1,239.2 |
|
|
4,567 |
|
2,185.4 |
|
|
4,570 |
|
2,031.2 |
|
||||
|
|
27,059 |
|
$ |
8,849.0 |
|
|
20,087 |
|
$ |
6,020.9 |
|
|
47,477 |
|
$ |
15,265.0 |
|
|
33,213 |
|
$ |
9,970.6 |
|
HOMES CLOSED |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
||||||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||||||
|
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
||||||||
East |
|
2,669 |
|
$ |
861.3 |
|
|
1,983 |
|
$ |
579.5 |
|
|
5,261 |
|
$ |
1,665.9 |
|
|
3,781 |
|
$ |
1,099.9 |
|
Midwest |
|
1,248 |
|
467.9 |
|
|
877 |
|
308.7 |
|
|
2,384 |
|
879.9 |
|
|
1,690 |
|
590.9 |
|
||||
Southeast |
|
6,996 |
|
2,043.2 |
|
|
4,831 |
|
1,315.4 |
|
|
13,292 |
|
3,819.5 |
|
|
9,062 |
|
2,464.7 |
|
||||
South Central |
|
5,707 |
|
1,502.9 |
|
|
4,167 |
|
1,057.2 |
|
|
11,376 |
|
2,976.3 |
|
|
7,947 |
|
2,015.2 |
|
||||
Southwest |
|
807 |
|
243.1 |
|
|
680 |
|
199.7 |
|
|
1,580 |
|
475.3 |
|
|
1,343 |
|
395.7 |
|
||||
West |
|
2,274 |
|
1,052.0 |
|
|
2,001 |
|
902.8 |
|
|
4,547 |
|
2,052.2 |
|
|
3,675 |
|
1,660.2 |
|
||||
|
|
19,701 |
|
$ |
6,170.4 |
|
|
14,539 |
|
$ |
4,363.3 |
|
|
38,440 |
|
$ |
11,869.1 |
|
|
27,498 |
|
$ |
8,226.6 |
|
SALES ORDER BACKLOG |
||||||||||||
|
|
|
|
|
|
|
|
|
||||
|
|
As of March 31, |
||||||||||
|
|
2021 |
|
2020 |
||||||||
|
|
Homes |
|
Value |
|
Homes |
|
Value |
||||
East |
|
4,243 |
|
$ |
1,407.5 |
|
|
2,725 |
|
$ |
826.7 |
|
Midwest |
|
2,657 |
|
1,019.2 |
|
|
1,513 |
|
535.6 |
|
||
Southeast |
|
11,444 |
|
3,595.1 |
|
|
5,605 |
|
1,581.5 |
|
||
South Central |
|
11,926 |
|
3,345.3 |
|
|
6,133 |
|
1,602.0 |
|
||
Southwest |
|
2,645 |
|
848.0 |
|
|
1,081 |
|
313.2 |
|
||
West |
|
2,930 |
|
1,398.3 |
|
|
2,271 |
|
1,025.2 |
|
||
|
|
35,845 |
|
$ |
11,613.4 |
|
|
19,328 |
|
$ |
5,884.2 |
|
HOMES IN INVENTORY |
||||
|
|
As of |
||
|
|
March 31, 2021 |
|
September 30, 2020 |
East |
|
5,900 |
|
4,900 |
Midwest |
|
3,100 |
|
2,600 |
Southeast |
|
14,400 |
|
11,500 |
South Central |
|
14,700 |
|
12,600 |
Southwest |
|
3,200 |
|
1,800 |
West |
|
4,800 |
|
4,600 |
|
|
46,100 |
|
38,000 |
LAND AND LOT POSITION |
|||||||||||
|
As of March 31, 2021 |
|
As of September 30, 2020 |
||||||||
|
Land/Lots Owned |
|
Lots Controlled Under Land and Lot Purchase Contracts (1) |
|
Total Land/Lots Owned and Controlled |
|
Land/Lots Owned |
|
Lots Controlled Under Land and Lot Purchase Contracts (1) |
|
Total Land/Lots Owned and Controlled |
East |
11,000 |
|
69,100 |
|
80,100 |
|
11,300 |
|
50,500 |
|
61,800 |
Midwest |
8,500 |
|
28,300 |
|
36,800 |
|
8,000 |
|
17,800 |
|
25,800 |
Southeast |
27,000 |
|
124,600 |
|
151,600 |
|
28,700 |
|
95,700 |
|
124,400 |
South Central |
46,200 |
|
98,200 |
|
144,400 |
|
40,100 |
|
65,200 |
|
105,300 |
Southwest |
7,100 |
|
13,700 |
|
20,800 |
|
7,200 |
|
7,600 |
|
14,800 |
West |
21,700 |
|
31,300 |
|
53,000 |
|
17,300 |
|
27,500 |
|
44,800 |
|
121,500 |
|
365,200 |
|
486,700 |
|
112,600 |
|
264,300 |
|
376,900 |
|
25 % |
|
75 % |
|
100 % |
|
|
|
|
|
|
_____________
(1) |
Lots controlled at March 31, 2021 included approximately 37,100 lots owned or controlled by Forestar, 20,400 of which our homebuilding divisions have under contract to purchase and 16,700 of which our homebuilding divisions have a right of first offer to purchase. Lots controlled at September 30, 2020 included approximately 30,400 lots owned or controlled by Forestar, 14,000 of which our homebuilding divisions had under contract to purchase and 16,400 of which our homebuilding divisions had a right of first offer to purchase. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210422005245/en/
FAQ
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