D.R. Horton, Inc., America’s Builder, Reports Fiscal 2021 Third Quarter Earnings and Declares Quarterly Dividend of $0.20 Per Share
D.R. Horton (NYSE:DHI) reported strong fiscal Q3 2021 results, with a 78% increase in net income per diluted share to $3.06 and a net income rise of 77% to $1.1 billion. Consolidated revenues grew 35% to $7.3 billion, alongside an 81% increase in pre-tax income to $1.4 billion, improving profit margins by 490 basis points to 19.4%. The company closed 21,588 homes, a 22% increase, while net sales orders fell 17% to 17,952 homes. D.R. Horton maintained strong liquidity with $3.7 billion available and plans to return capital through dividends and share repurchases.
- Net income per diluted share increased 78% to $3.06.
- Consolidated revenues rose 35% to $7.3 billion.
- Pre-tax income increased 81% to $1.4 billion.
- Homes closed rose 22% to 21,588.
- Significant liquidity with total homebuilding liquidity of $3.7 billion.
- Net sales orders decreased 17% in volume to 17,952 homes.
- Cancellation rate increased to 17% compared to 22% last year.
D.R. Horton, Inc. (NYSE:DHI):
Fiscal 2021 Third Quarter Highlights - comparisons to the prior year quarter
-
Net income per diluted share increased
78% to$3.06 -
Net income attributable to D.R. Horton increased
77% to$1.1 billion -
Consolidated revenues increased
35% to$7.3 billion -
Consolidated pre-tax income increased
81% to$1.4 billion -
Consolidated pre-tax profit margin improved 490 basis points to
19.4% -
Homes closed increased
35% in value to$7.0 billion on 21,588 homes closed -
Net sales orders increased
2% in value to$6.4 billion on 17,952 homes sold -
Repurchased 2.6 million shares of common stock for
$241.2 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 third fiscal quarter ended June 30, 2021 increased
For the nine months ended June 30, 2021, net income per common share attributable to D.R. Horton increased
Net sales orders for the third quarter ended June 30, 2021 decreased
At June 30, 2021, the Company had 47,300 homes in inventory, of which 15,400 were unsold. 500 of the Company’s unsold homes at June 30, 2021 were completed. The Company’s homebuilding land and lot portfolio totaled 517,100 lots at the end of the quarter, of which
The Company's return on equity (ROE) was
The Company ended the third quarter with
Donald R. Horton, Chairman of the Board, said, “The D.R. Horton team delivered outstanding results in the third fiscal quarter of 2021, highlighted by EPS increasing
“Housing market conditions remain very robust, with homebuyer demand exceeding our current capacity to deliver homes across all of our markets. As our top priority is to consistently fulfill our commitments to our homebuyers, we have slowed our home sales pace to more closely align to our current production levels, while building out the infrastructure needed to support a higher level of home starts. We are also selling homes later in the construction cycle when we can better ensure the certainty of the home close date for our homebuyers. After starting 22,600 homes during the quarter, our homes in inventory at June 30, 2021 increased
“We remain 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 nine months of fiscal 2021, D.R. Horton is updating its fiscal 2021 guidance as follows:
-
Consolidated revenues of
$27.6 billion to$28.1 billion - Homes closed between 83,000 homes and 84,500 homes
-
Outstanding share count at the end of fiscal 2021 approximately
2% lower than at the end of fiscal 2020
The Company plans to also provide guidance for its fourth 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 55 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 third quarter ended June 30, 2021, Forestar sold 3,858 lots and generated
Forestar’s pre-tax income in the third quarter of fiscal 2021 increased
Financial Services
For the third quarter ended June 30, 2021, financial services revenues increased
Multi-Family Rental Operations
At June 30, 2021, the Company’s multi-family rental operations had eleven projects under active construction and four projects that were substantially complete and in the lease-up phase. These 15 projects represent 4,540 multi-family units. There were no multi-family rental properties sold during the quarter or nine months ended June 30, 2021. At June 30, 2021, the consolidated balance sheet included
Single-Family Rental Operations
During fiscal 2020, the Company began constructing and leasing homes as income-producing single-family rental communities. After a rental community is constructed and achieves a stabilized level of leased occupancy, the Company generally markets the community for a bulk sale of homes. During the third quarter of fiscal 2021, the Company completed its second single-family rental property sale for
Rental Operations Reporting
During the third quarter of fiscal 2021, the Company changed the presentation of its single- and multi-family rental operations in its consolidated financial statements. Bulk sales of rental properties are now presented as revenues and cost of sales, rental assets previously recorded as property and equipment have been reclassified to inventory, and related cash flows for the single- and multi-family rental operations are now included in operating activities. Prior to the third quarter of fiscal 2021, bulk sales of rental properties were presented on a net basis as a gain on sale of assets, and the majority of the cash flow activities were included in investing activities. This change in presentation was implemented as a result of the Company’s change in strategic focus during the third quarter of fiscal 2021, which included increased levels of activity in the current quarter and plans for future investment in the Company’s single- and multi-family rental operations. This presentation was effected on a prospective basis beginning in the third quarter of fiscal 2021.
Dividends
During the third quarter of fiscal 2021, the Company paid cash dividends of
Share Repurchases
The Company repurchased 2.6 million shares of common stock for
Conference Call and Webcast Details
The Company will host a conference call today (Thursday, July 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 96 markets in 30 states across the United States and closed 80,276 homes in the twelve-month period ended June 30, 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 as our top priority is to consistently fulfill our commitments to our homebuyers, we have slowed our home sales pace to more closely align to our current production levels, while building out the infrastructure needed to support a higher level of home starts; we are also selling homes later in the construction cycle when we can better ensure the certainty of the home close date for our homebuyers; and that after starting 22,600 homes during the quarter, our homes in inventory at June 30, 2021 increased
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 COVID-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) |
|||||||
|
June 30,
|
|
September 30,
|
||||
|
(In millions) |
||||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
1,942.7 |
|
|
$ |
3,018.5 |
|
Restricted cash |
26.4 |
|
|
21.6 |
|
||
Total cash, cash equivalents and restricted cash |
1,969.1 |
|
|
3,040.1 |
|
||
Inventories: |
|
|
|
||||
Construction in progress and finished homes |
7,744.1 |
|
|
5,984.1 |
|
||
Residential land and lots — developed, under development, held for development and held for sale |
7,545.3 |
|
|
6,253.3 |
|
||
Rental properties |
722.3 |
|
|
— |
|
||
Total inventory |
16,011.7 |
|
|
12,237.4 |
|
||
Mortgage loans held for sale |
1,644.1 |
|
|
1,529.0 |
|
||
Deferred income taxes, net of valuation allowance of |
147.1 |
|
|
144.9 |
|
||
Property and equipment, net |
367.0 |
|
|
683.7 |
|
||
Other assets |
1,491.0 |
|
|
1,113.7 |
|
||
Goodwill |
163.5 |
|
|
163.5 |
|
||
Total assets |
$ |
21,793.5 |
|
|
$ |
18,912.3 |
|
LIABILITIES |
|
|
|
||||
Accounts payable |
$ |
1,250.9 |
|
|
$ |
900.5 |
|
Accrued expenses and other liabilities |
2,001.3 |
|
|
1,607.0 |
|
||
Notes payable |
4,416.3 |
|
|
4,283.3 |
|
||
Total liabilities |
7,668.5 |
|
|
6,790.8 |
|
||
EQUITY |
|
|
|
||||
Common stock, $.01 par value, 1,000,000,000 shares authorized, 396,959,567 shares issued and 358,124,810 shares outstanding at June 30, 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 |
3,246.0 |
|
|
3,240.9 |
|
||
Retained earnings |
12,376.9 |
|
|
9,757.8 |
|
||
Treasury stock, 38,834,757 shares and 30,741,367 shares at June 30, 2021 and September 30, 2020, respectively, at cost |
(1,824.0) |
|
|
(1,162.6) |
|
||
Stockholders’ equity |
13,802.9 |
|
|
11,840.0 |
|
||
Noncontrolling interests |
322.1 |
|
|
281.5 |
|
||
Total equity |
14,125.0 |
|
|
12,121.5 |
|
||
Total liabilities and equity |
$ |
21,793.5 |
|
|
$ |
18,912.3 |
|
D.R. HORTON, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Nine Months Ended June 30, |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
(In millions, except per share data) |
||||||||||||||
Revenues |
$ |
7,284.6 |
|
|
$ |
5,390.0 |
|
|
$ |
19,664.9 |
|
|
$ |
13,910.8 |
|
Cost of sales |
5,212.6 |
|
|
4,084.7 |
|
|
14,196.0 |
|
|
10,619.7 |
|
||||
Selling, general and administrative expense |
655.7 |
|
|
527.5 |
|
|
1,863.2 |
|
|
1,450.1 |
|
||||
Gain on sale of assets |
— |
|
|
— |
|
|
(14.0) |
|
|
(59.5) |
|
||||
Loss on extinguishment of debt |
18.1 |
|
|
— |
|
|
18.1 |
|
|
— |
|
||||
Other (income) expense |
(17.4) |
|
|
(4.6) |
|
|
(28.2) |
|
|
(26.4) |
|
||||
Income before income taxes |
1,415.6 |
|
|
782.4 |
|
|
3,629.8 |
|
|
1,926.9 |
|
||||
Income tax expense |
299.1 |
|
|
149.5 |
|
|
784.1 |
|
|
377.6 |
|
||||
Net income |
1,116.5 |
|
|
632.9 |
|
|
2,845.7 |
|
|
1,549.3 |
|
||||
Net income attributable to noncontrolling interests |
1.0 |
|
|
2.2 |
|
|
8.9 |
|
|
4.6 |
|
||||
Net income attributable to D.R. Horton, Inc. |
$ |
1,115.5 |
|
|
$ |
630.7 |
|
|
$ |
2,836.8 |
|
|
$ |
1,544.7 |
|
|
|
|
|
|
|
|
|
||||||||
Basic net income per common share attributable to D.R. Horton, Inc. |
$ |
3.10 |
|
|
$ |
1.73 |
|
|
$ |
7.83 |
|
|
$ |
4.22 |
|
Weighted average number of common shares |
359.7 |
|
|
363.8 |
|
|
362.2 |
|
|
366.0 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted net income per common share attributable to D.R. Horton, Inc. |
$ |
3.06 |
|
|
$ |
1.72 |
|
|
$ |
7.73 |
|
|
$ |
4.17 |
|
Adjusted weighted average number of common shares |
364.0 |
|
|
367.7 |
|
|
367.1 |
|
|
370.4 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Other Consolidated Financial Data |
|
|
|
|
|
|
|
||||||||
Interest charged to cost of sales |
$ |
35.4 |
|
|
$ |
32.8 |
|
|
$ |
102.8 |
|
|
$ |
87.7 |
|
Depreciation and amortization |
$ |
17.4 |
|
|
$ |
18.6 |
|
|
$ |
56.7 |
|
|
$ |
57.4 |
|
Interest incurred |
$ |
37.7 |
|
|
$ |
38.0 |
|
|
$ |
116.0 |
|
|
$ |
113.3 |
|
D.R. HORTON, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
|||||||
|
Nine Months Ended June 30, |
||||||
|
2021 |
|
2020 |
||||
|
(In millions) |
||||||
OPERATING ACTIVITIES |
|
|
|
||||
Net income |
$ |
2,845.7 |
|
|
$ |
1,549.3 |
|
Adjustments to reconcile net income to net cash (used in) provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
56.7 |
|
|
57.4 |
|
||
Amortization of discounts and fees |
6.9 |
|
|
7.8 |
|
||
Stock-based compensation expense |
69.7 |
|
|
59.2 |
|
||
Equity in earnings of unconsolidated entities |
(1.0) |
|
|
(0.6) |
|
||
Deferred income taxes |
(2.1) |
|
|
1.0 |
|
||
Inventory and land option charges |
17.6 |
|
|
17.8 |
|
||
Gain on sale of assets |
(14.0) |
|
|
(59.5) |
|
||
Loss on extinguishment of debt |
18.1 |
|
|
— |
|
||
Changes in operating assets and liabilities: |
|
|
|
||||
Increase in construction in progress and finished homes |
(1,739.7) |
|
|
(602.3) |
|
||
Increase in residential land and lots – developed, under development, held for development and held for sale |
(1,349.8) |
|
|
(361.9) |
|
||
Increase in rental properties |
(196.0) |
|
|
— |
|
||
Increase in other assets |
(367.2) |
|
|
(62.2) |
|
||
Net increase in mortgage loans held for sale |
(115.1) |
|
|
(430.7) |
|
||
Increase in accounts payable, accrued expenses and other liabilities |
735.7 |
|
|
413.6 |
|
||
Net cash (used in) provided by operating activities |
(34.5) |
|
|
588.9 |
|
||
INVESTING ACTIVITIES |
|
|
|
||||
Expenditures for property and equipment |
(46.0) |
|
|
(66.8) |
|
||
Proceeds from sale of assets |
37.6 |
|
|
129.8 |
|
||
Expenditures related to rental properties |
(173.9) |
|
|
(153.6) |
|
||
Return of investment in unconsolidated entities |
2.2 |
|
|
2.4 |
|
||
Net principal increase of other mortgage loans and real estate owned |
(2.4) |
|
|
(3.7) |
|
||
Payments related to business acquisitions |
(24.4) |
|
|
(8.5) |
|
||
Net cash used in investing activities |
(206.9) |
|
|
(100.4) |
|
||
FINANCING ACTIVITIES |
|
|
|
||||
Proceeds from notes payable |
914.1 |
|
|
2,346.3 |
|
||
Repayment of notes payable |
(792.8) |
|
|
(1,679.5) |
|
||
(Payments) advances on mortgage repurchase facility, net |
(39.0) |
|
|
284.0 |
|
||
Proceeds from stock associated with certain employee benefit plans |
15.5 |
|
|
15.0 |
|
||
Cash paid for shares withheld for taxes |
(78.5) |
|
|
(38.2) |
|
||
Cash dividends paid |
(217.7) |
|
|
(192.3) |
|
||
Repurchases of common stock |
(661.4) |
|
|
(360.4) |
|
||
Distributions to noncontrolling interests, net |
(0.1) |
|
|
(0.7) |
|
||
Net proceeds from issuance of Forestar common stock |
32.6 |
|
|
— |
|
||
Other financing activities |
(2.3) |
|
|
(4.0) |
|
||
Net cash (used in) provided by financing activities |
(829.6) |
|
|
370.2 |
|
||
Net (decrease) increase in cash, cash equivalents and restricted cash |
(1,071.0) |
|
|
858.7 |
|
||
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 |
$ |
1,969.1 |
|
$ |
2,372.7 |
||
|
|
June 30, 2021 |
||||||||||||||||||||||
|
|
Homebuilding |
|
Forestar (1) |
|
Financial
|
|
Other |
|
Eliminations
|
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents |
|
$ |
1,673.8 |
|
|
$ |
116.0 |
|
|
$ |
101.1 |
|
|
$ |
51.8 |
|
|
$ |
— |
|
|
$ |
1,942.7 |
|
Restricted cash |
|
11.5 |
|
|
— |
|
|
14.6 |
|
|
0.3 |
|
|
— |
|
|
26.4 |
|
||||||
Inventories: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction in progress and finished homes |
|
7,837.8 |
|
|
— |
|
|
— |
|
|
— |
|
|
(93.7) |
|
|
7,744.1 |
|
||||||
Residential land and lots |
|
5,729.3 |
|
|
1,861.4 |
|
|
— |
|
|
— |
|
|
(45.4) |
|
|
7,545.3 |
|
||||||
Rental properties |
|
303.1 |
|
|
— |
|
|
— |
|
|
436.3 |
|
|
(17.1) |
|
|
722.3 |
|
||||||
|
|
13,870.2 |
|
|
1,861.4 |
|
|
— |
|
|
436.3 |
|
|
(156.2) |
|
|
16,011.7 |
|
||||||
Mortgage loans held for sale |
|
— |
|
|
— |
|
|
1,644.1 |
|
|
— |
|
|
— |
|
|
1,644.1 |
|
||||||
Deferred income taxes, net |
|
152.5 |
|
|
— |
|
|
— |
|
|
— |
|
|
(5.4) |
|
|
147.1 |
|
||||||
Property and equipment, net |
|
280.3 |
|
|
2.2 |
|
|
3.4 |
|
|
81.1 |
|
|
— |
|
|
367.0 |
|
||||||
Other assets |
|
1,381.5 |
|
|
35.4 |
|
|
122.6 |
|
|
62.7 |
|
|
(111.2) |
|
|
1,491.0 |
|
||||||
Goodwill |
|
134.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
29.2 |
|
|
163.5 |
|
||||||
|
|
$ |
17,504.1 |
|
|
$ |
2,015.0 |
|
|
$ |
1,885.8 |
|
|
$ |
632.2 |
|
|
$ |
(243.6) |
|
|
$ |
21,793.5 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable |
|
$ |
1,171.1 |
|
|
$ |
45.6 |
|
|
$ |
— |
|
|
$ |
34.2 |
|
|
$ |
— |
|
|
$ |
1,250.9 |
|
Accrued expenses and other liabilities |
|
1,773.5 |
|
|
294.9 |
|
|
90.7 |
|
|
14.2 |
|
|
(172.0) |
|
|
2,001.3 |
|
||||||
Notes payable |
|
2,620.0 |
|
|
704.1 |
|
|
1,093.6 |
|
|
— |
|
|
(1.4) |
|
|
4,416.3 |
|
||||||
|
|
$ |
5,564.6 |
|
|
$ |
1,044.6 |
|
|
$ |
1,184.3 |
|
|
$ |
48.4 |
|
|
$ |
(173.4) |
|
|
$ |
7,668.5 |
|
___________________________
(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. |
|
|
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. |
|
|
Three Months Ended June 30, 2021 |
||||||||||||||||||||||
|
|
Homebuilding |
|
Forestar (1) |
|
Financial
|
|
Other |
|
Eliminations
|
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales |
|
$ |
7,040.1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,040.1 |
|
Land/lot sales and other |
|
30.2 |
|
|
312.9 |
|
|
— |
|
|
15.9 |
|
|
(303.2) |
|
|
55.8 |
|
||||||
Financial services |
|
— |
|
|
— |
|
|
188.7 |
|
|
— |
|
|
— |
|
|
188.7 |
|
||||||
|
|
7,070.3 |
|
|
312.9 |
|
|
188.7 |
|
|
15.9 |
|
|
(303.2) |
|
|
7,284.6 |
|
||||||
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales (3) |
|
5,219.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
(40.0) |
|
|
5,179.2 |
|
||||||
Land/lot sales and other |
|
14.4 |
|
|
256.4 |
|
|
— |
|
|
— |
|
|
(243.0) |
|
|
27.8 |
|
||||||
Inventory and land option charges |
|
4.9 |
|
|
0.7 |
|
|
— |
|
|
— |
|
|
— |
|
|
5.6 |
|
||||||
|
|
5,238.5 |
|
|
257.1 |
|
|
— |
|
|
— |
|
|
(283.0) |
|
|
5,212.6 |
|
||||||
Selling, general and administrative expense |
|
502.0 |
|
|
16.9 |
|
|
127.0 |
|
|
9.6 |
|
|
0.2 |
|
|
655.7 |
|
||||||
Loss on extinguishment of debt |
|
— |
|
|
18.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
18.1 |
|
||||||
Other (income) expense |
|
(7.1) |
|
|
(0.3) |
|
|
(8.6) |
|
|
(1.4) |
|
|
— |
|
|
(17.4) |
|
||||||
Income before income taxes |
|
$ |
1,336.9 |
|
|
$ |
21.1 |
|
|
$ |
70.3 |
|
|
$ |
7.7 |
|
|
$ |
(20.4) |
|
|
$ |
1,415.6 |
|
|
|
Nine Months Ended June 30, 2021 |
||||||||||||||||||||||
|
|
Homebuilding |
|
Forestar (1) |
|
Financial
|
|
Other |
|
Eliminations
|
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales |
|
$ |
18,909.2 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
18,909.2 |
|
Land/lot sales and other |
|
67.4 |
|
|
907.1 |
|
|
— |
|
|
45.9 |
|
|
(865.8) |
|
|
154.6 |
|
||||||
Financial services |
|
— |
|
|
— |
|
|
601.1 |
|
|
— |
|
|
— |
|
|
601.1 |
|
||||||
|
|
18,976.6 |
|
|
907.1 |
|
|
601.1 |
|
|
45.9 |
|
|
(865.8) |
|
|
19,664.9 |
|
||||||
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales (3) |
|
14,196.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
(103.3) |
|
|
14,093.0 |
|
||||||
Land/lot sales and other |
|
40.9 |
|
|
752.2 |
|
|
— |
|
|
— |
|
|
(707.7) |
|
|
85.4 |
|
||||||
Inventory and land option charges |
|
16.0 |
|
|
1.6 |
|
|
— |
|
|
— |
|
|
— |
|
|
17.6 |
|
||||||
|
|
14,253.2 |
|
|
753.8 |
|
|
— |
|
|
— |
|
|
(811.0) |
|
|
14,196.0 |
|
||||||
Selling, general and administrative expense |
|
1,422.7 |
|
|
48.7 |
|
|
360.4 |
|
|
30.9 |
|
|
0.5 |
|
|
1,863.2 |
|
||||||
Gain on sale of assets |
|
(13.1) |
|
|
— |
|
|
— |
|
|
(0.9) |
|
|
— |
|
|
(14.0) |
|
||||||
Loss on extinguishment of debt |
|
— |
|
|
18.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
18.1 |
|
||||||
Other (income) expense |
|
(10.4) |
|
|
(1.4) |
|
|
(21.4) |
|
|
5.8 |
|
|
(0.8) |
|
|
(28.2) |
|
||||||
Income before income taxes |
|
$ |
3,324.2 |
|
|
$ |
87.9 |
|
|
$ |
262.1 |
|
|
$ |
10.1 |
|
|
$ |
(54.5) |
|
|
$ |
3,629.8 |
|
Summary Cash Flow Information |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash provided by (used in) operating activities |
|
$ |
276.1 |
|
|
$ |
(340.6) |
|
|
$ |
96.2 |
|
|
$ |
(58.2) |
|
|
$ |
(8.0) |
|
|
$ |
(34.5) |
|
_____________
(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 recognition of 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. |
|
|
Three Months Ended June 30, 2020 |
||||||||||||||||||||||
|
|
Homebuilding |
|
Forestar (1) |
|
Financial
|
|
Other |
|
Eliminations
|
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales |
|
$ |
5,207.6 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,207.6 |
|
Land/lot sales and other |
|
14.5 |
|
|
177.9 |
|
|
— |
|
|
8.9 |
|
|
(175.5) |
|
|
25.8 |
|
||||||
Financial services |
|
— |
|
|
— |
|
|
156.6 |
|
|
— |
|
|
— |
|
|
156.6 |
|
||||||
|
|
5,222.1 |
|
|
177.9 |
|
|
156.6 |
|
|
8.9 |
|
|
(175.5) |
|
|
5,390.0 |
|
||||||
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales (3) |
|
4,082.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
(16.8) |
|
|
4,065.5 |
|
||||||
Land/lot sales and other |
|
10.2 |
|
|
157.0 |
|
|
— |
|
|
— |
|
|
(153.0) |
|
|
14.2 |
|
||||||
Inventory and land option charges |
|
4.9 |
|
|
0.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
5.0 |
|
||||||
|
|
4,097.4 |
|
|
157.1 |
|
|
— |
|
|
— |
|
|
(169.8) |
|
|
4,084.7 |
|
||||||
Selling, general and administrative expense |
|
415.1 |
|
|
11.2 |
|
|
93.9 |
|
|
7.1 |
|
|
0.2 |
|
|
527.5 |
|
||||||
Other (income) expense |
|
(0.2) |
|
|
(0.7) |
|
|
(6.1) |
|
|
2.4 |
|
|
— |
|
|
(4.6) |
|
||||||
Income (loss) before income taxes |
|
$ |
709.8 |
|
|
$ |
10.3 |
|
|
$ |
68.8 |
|
|
$ |
(0.6) |
|
|
$ |
(5.9) |
|
|
$ |
782.4 |
|
|
|
Nine Months Ended June 30, 2020 |
||||||||||||||||||||||
|
|
Homebuilding |
|
Forestar (1) |
|
Financial
|
|
Other |
|
Eliminations
|
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales |
|
$ |
13,434.2 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
13,434.2 |
|
Land/lot sales and other |
|
49.7 |
|
|
584.3 |
|
|
— |
|
|
27.2 |
|
|
(548.6) |
|
|
112.6 |
|
||||||
Financial services |
|
— |
|
|
— |
|
|
364.0 |
|
|
— |
|
|
— |
|
|
364.0 |
|
||||||
|
|
13,483.9 |
|
|
584.3 |
|
|
364.0 |
|
|
27.2 |
|
|
(548.6) |
|
|
13,910.8 |
|
||||||
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales (3) |
|
10,569.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
(34.4) |
|
|
10,534.8 |
|
||||||
Land/lot sales and other |
|
34.9 |
|
|
509.8 |
|
|
— |
|
|
— |
|
|
(477.6) |
|
|
67.1 |
|
||||||
Inventory and land option charges |
|
17.3 |
|
|
0.5 |
|
|
— |
|
|
— |
|
|
— |
|
|
17.8 |
|
||||||
|
|
10,621.4 |
|
|
510.3 |
|
|
— |
|
|
— |
|
|
(512.0) |
|
|
10,619.7 |
|
||||||
Selling, general and administrative expense |
|
1,135.3 |
|
|
32.8 |
|
|
257.7 |
|
|
23.9 |
|
|
0.4 |
|
|
1,450.1 |
|
||||||
Gain on sale of assets |
|
— |
|
|
(0.1) |
|
|
— |
|
|
(59.4) |
|
|
— |
|
|
(59.5) |
|
||||||
Other (income) expense |
|
(9.7) |
|
|
(4.8) |
|
|
(17.7) |
|
|
5.8 |
|
|
— |
|
|
(26.4) |
|
||||||
Income before income taxes |
|
$ |
1,736.9 |
|
|
$ |
46.1 |
|
|
$ |
124.0 |
|
|
$ |
56.9 |
|
|
$ |
(37.0) |
|
|
$ |
1,926.9 |
|
Summary Cash Flow Information |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash provided by (used in) operating activities |
|
$ |
1,157.0 |
|
|
$ |
(205.7) |
|
|
$ |
(347.7) |
|
|
$ |
2.1 |
|
|
$ |
(16.8) |
|
|
$ |
588.9 |
|
_____________
(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 recognition of 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. |
NET SALES ORDERS |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended June 30, |
|
Nine Months Ended June 30, |
||||||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||||||
|
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
||||||||
East |
|
2,158 |
|
$ |
766.3 |
|
|
2,803 |
|
$ |
837.8 |
|
|
8,079 |
|
$ |
2,702.3 |
|
|
7,393 |
|
$ |
2,188.3 |
|
Midwest |
|
789 |
|
327.2 |
|
|
1,374 |
|
483.8 |
|
|
3,814 |
|
1,494.8 |
|
|
3,514 |
|
1,245.5 |
|
||||
Southeast |
|
5,843 |
|
1,956.6 |
|
|
6,991 |
|
1,920.0 |
|
|
22,323 |
|
6,992.7 |
|
|
17,381 |
|
4,746.7 |
|
||||
South Central |
|
5,897 |
|
1,826.8 |
|
|
6,644 |
|
1,693.5 |
|
|
21,161 |
|
6,039.7 |
|
|
16,558 |
|
4,226.7 |
|
||||
Southwest |
|
830 |
|
315.8 |
|
|
1,017 |
|
285.4 |
|
|
3,050 |
|
1,042.8 |
|
|
2,626 |
|
752.8 |
|
||||
West |
|
2,435 |
|
1,256.2 |
|
|
2,690 |
|
1,116.8 |
|
|
7,002 |
|
3,441.6 |
|
|
7,260 |
|
3,147.9 |
|
||||
|
|
17,952 |
|
$ |
6,448.9 |
|
|
21,519 |
|
$ |
6,337.3 |
|
|
65,429 |
|
$ |
21,713.9 |
|
|
54,732 |
|
$ |
16,307.9 |
|
HOMES CLOSED |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended June 30, |
|
Nine Months Ended June 30, |
||||||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||||||
|
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
||||||||
East |
|
3,077 |
|
$ |
1,032.6 |
|
|
2,500 |
|
$ |
735.2 |
|
|
8,338 |
|
$ |
2,698.4 |
|
|
6,281 |
|
$ |
1,835.1 |
|
Midwest |
|
1,371 |
|
514.2 |
|
|
1,053 |
|
372.7 |
|
|
3,755 |
|
1,394.1 |
|
|
2,743 |
|
963.6 |
|
||||
Southeast |
|
7,456 |
|
2,276.4 |
|
|
5,921 |
|
1,627.8 |
|
|
20,748 |
|
6,095.9 |
|
|
14,983 |
|
4,092.5 |
|
||||
South Central |
|
6,222 |
|
1,705.1 |
|
|
5,397 |
|
1,375.6 |
|
|
17,598 |
|
4,681.4 |
|
|
13,344 |
|
3,390.8 |
|
||||
Southwest |
|
946 |
|
291.0 |
|
|
750 |
|
213.8 |
|
|
2,526 |
|
766.3 |
|
|
2,093 |
|
609.5 |
|
||||
West |
|
2,516 |
|
1,220.8 |
|
|
2,021 |
|
882.5 |
|
|
7,063 |
|
3,273.1 |
|
|
5,696 |
|
2,542.7 |
|
||||
|
|
21,588 |
|
$ |
7,040.1 |
|
|
17,642 |
|
$ |
5,207.6 |
|
|
60,028 |
|
$ |
18,909.2 |
|
|
45,140 |
|
$ |
13,434.2 |
|
SALES ORDER BACKLOG |
||||||||||||
|
|
|
|
|
|
|
|
|
||||
|
|
As of June 30, |
||||||||||
|
|
2021 |
|
2020 |
||||||||
|
|
Homes |
|
Value |
|
Homes |
|
Value |
||||
East |
|
3,324 |
|
$ |
1,141.2 |
|
|
3,028 |
|
$ |
929.3 |
|
Midwest |
|
2,075 |
|
832.3 |
|
|
1,834 |
|
646.6 |
|
||
Southeast |
|
9,831 |
|
3,275.3 |
|
|
6,675 |
|
1,873.7 |
|
||
South Central |
|
11,601 |
|
3,467.0 |
|
|
7,380 |
|
1,920.0 |
|
||
Southwest |
|
2,529 |
|
872.7 |
|
|
1,348 |
|
384.8 |
|
||
West |
|
2,849 |
|
1,433.7 |
|
|
2,940 |
|
1,259.4 |
|
||
|
|
32,209 |
|
$ |
11,022.2 |
|
|
23,205 |
|
$ |
7,013.8 |
|
LAND AND LOT POSITION |
|||||||||||||||||
|
As of June 30, 2021 |
|
As of September 30, 2020 |
||||||||||||||
|
Land/Lots
|
|
Lots Controlled
|
|
Total
|
|
Land/Lots
|
|
Lots Controlled
|
|
Total
|
||||||
East |
12,800 |
|
78,100 |
|
90,900 |
|
11,300 |
|
50,500 |
|
61,800 |
||||||
Midwest |
8,400 |
|
29,600 |
|
38,000 |
|
8,000 |
|
17,800 |
|
25,800 |
||||||
Southeast |
25,600 |
|
139,700 |
|
165,300 |
|
28,700 |
|
95,700 |
|
124,400 |
||||||
South Central |
47,200 |
|
93,300 |
|
140,500 |
|
40,100 |
|
65,200 |
|
105,300 |
||||||
Southwest |
7,000 |
|
16,100 |
|
23,100 |
|
7,200 |
|
7,600 |
|
14,800 |
||||||
West |
22,900 |
|
36,400 |
|
59,300 |
|
17,300 |
|
27,500 |
|
44,800 |
||||||
|
123,900 |
|
393,200 |
|
517,100 |
|
112,600 |
|
264,300 |
|
376,900 |
||||||
|
24 % |
|
76 % |
|
100 % |
|
30 % |
|
70 % |
|
100 % |
||||||
_____________
(1) |
Lots controlled at June 30, 2021 included approximately 39,400 lots owned or controlled by Forestar, 21,500 of which our homebuilding divisions have under contract to purchase and 17,900 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. |
HOMES IN INVENTORY (1) |
||||
|
|
|
|
|
|
|
June 30,
|
|
September 30,
|
East |
|
5,600 |
|
4,900 |
Midwest |
|
3,700 |
|
2,600 |
Southeast |
|
14,600 |
|
11,500 |
South Central |
|
15,500 |
|
12,600 |
Southwest |
|
3,000 |
|
1,800 |
West |
|
4,900 |
|
4,600 |
|
|
47,300 |
|
38,000 |
_____________
(1) |
Homes in inventory exclude 1,300 and 600 homes related to our single-family rental operations at June 30, 2021 and September 30, 2020, respectively, and also exclude approximately 1,800 model homes at both dates. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210722005270/en/
FAQ
What were D.R. Horton's earnings for fiscal Q3 2021?
How did D.R. Horton's revenues perform in fiscal Q3 2021?
What was the change in D.R. Horton's home sales orders in Q3 2021?
What is the financial outlook for D.R. Horton for fiscal 2021?
What was D.R. Horton's stock repurchase activity in fiscal Q3 2021?
