D.R. Horton, Inc., America’s Builder, Reports Fiscal 2022 Third Quarter Earnings and Declares Quarterly Dividend of $0.225 Per Share
D.R. Horton reported strong fiscal 2022 Q3 results, with net income per diluted share rising 53% to $4.67 and total net income increasing 48% to $1.6 billion. Consolidated revenues grew 21% to $8.8 billion, while pre-tax income also rose 54% to $2.2 billion, resulting in a pre-tax profit margin improvement to 24.8%. Though home sales revenues increased 18% to $8.3 billion, homes closed fell by 1% to 21,308. The company updated its full-year guidance, forecasting revenues of $33.8 billion to $34.6 billion.
- Net income per diluted share increased 53% to $4.67.
- Total consolidated revenues rose 21% to $8.8 billion.
- Consolidated pre-tax income increased 54% to $2.2 billion.
- Homebuilding revenue up 18% to $8.3 billion.
- Return on equity (ROE) at 35.1%.
- Homes closed decreased 1% to 21,308.
- Net sales orders decreased 7% to 16,693 homes.
- Cancellation rate increased to 24% from 17% year-over-year.
Fiscal 2022 Third Quarter Highlights - comparisons to the prior year quarter
-
Net income per diluted share increased
53% to$4.67 -
Net income attributable to
D.R. Horton increased48% to$1.6 billion -
Consolidated revenues increased
21% to$8.8 billion -
Consolidated pre-tax income increased
54% to$2.2 billion -
Consolidated pre-tax profit margin improved 540 basis points to
24.8% -
Home sales revenues increased
18% to$8.3 billion -
Net sales orders increased
8% in value to$6.9 billion -
Repurchased 4.7 million shares of common stock for
$310.0 million
For the nine months ended
Net sales orders for the third quarter ended
At
The Company's return on equity (ROE) was
The Company ended the third quarter with
“During the first half of fiscal 2022 and most of our third quarter, housing market conditions remained strong. During the quarter, we were still selling homes later in the construction cycle to better ensure the certainty of the home close date for our homebuyers as we continued working to stabilize our construction cycle times. In June, we began to see a moderation in housing demand as mortgage interest rates increased substantially and inflationary pressures remained elevated. Although these pressures may persist for some time, we believe we are well-positioned to meet changing market conditions with our affordable product offerings and lot supply and our strong trade and supplier relationships.
“The strength of our balance sheet, liquidity and low leverage provide us significant financial flexibility, and we are managing our homes in inventory to maximize returns and improve capital efficiency in each of our communities while continuing to increase market share. 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 the Company’s results for the first nine months of fiscal 2022, expected completion dates of homes under construction and current market conditions,
-
Consolidated revenues in a range from
$33.8 billion $34.6 billion - Homes closed between 83,000 and 85,000 homes
The Company plans to also provide guidance for its fourth quarter of fiscal 2022 on its conference call today.
Forestar
For the third quarter ended
Financial Services
For the third quarter ended
Rental Operations
The Company's rental operations generated
During the third quarter of fiscal 2022, the Company sold one multi-family rental property (298 total units) for
During the third quarter of fiscal 2022, the Company sold one single-family rental property (84 total homes) for
The Company's multi-family and single-family rental sales and inventories are reported in its rental segment and are not included in the homes closed, revenues or inventories of its homebuilding segment.
Reclassifications
During the fourth quarter of fiscal 2021, the Company combined its single-family rental operations and its multi-family rental operations into a new rental reporting segment and realigned the aggregation of its homebuilding operating segments into six new geographic reporting regions. Segment information reported in prior year periods has been reclassified to conform to the fiscal 2022 presentation.
Dividends
During the third quarter of fiscal 2022, the Company paid cash dividends of
Share Repurchases
The Company repurchased 4.7 million shares of common stock for
Conference Call and Webcast Details
The Company will host a conference call today (
About
Forward-Looking Statements
Portions of this document may constitute “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Although
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 cyclical nature of the homebuilding, lot development and rental housing industries and changes in economic, real estate or 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, lot and rental inventory; our ability to effect our growth strategies, acquisitions or investments successfully; the impact of an inflationary, deflationary or higher interest rate environment; supply shortages and other risks of acquiring land, building materials and skilled labor; 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 effects of weather conditions and natural disasters on our business and financial results; home warranty and construction defect claims; the effects of health and safety incidents; 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 industries in which we operate; 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; actions by activist stockholders; 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
|
|||||||
|
|||||||
|
2022 |
|
2021 |
||||
|
(In millions) |
||||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
1,655.7 |
|
|
$ |
3,210.4 |
|
Restricted cash |
|
28.6 |
|
|
|
26.8 |
|
Total cash, cash equivalents and restricted cash |
|
1,684.3 |
|
|
|
3,237.2 |
|
Inventories: |
|
|
|
||||
Construction in progress and finished homes |
|
10,803.1 |
|
|
|
7,739.2 |
|
Residential land and lots — developed, under development, held for development and held for sale |
|
8,944.8 |
|
|
|
7,918.1 |
|
Rental properties |
|
1,951.0 |
|
|
|
821.8 |
|
Total inventory |
|
21,698.9 |
|
|
|
16,479.1 |
|
Mortgage loans held for sale |
|
2,082.5 |
|
|
|
2,027.3 |
|
Deferred income taxes, net of valuation allowance of
at |
|
157.4 |
|
|
|
155.3 |
|
Property and equipment, net |
|
481.3 |
|
|
|
392.9 |
|
Other assets |
|
2,602.0 |
|
|
|
1,560.6 |
|
|
|
163.5 |
|
|
|
163.5 |
|
Total assets |
$ |
28,869.9 |
|
|
$ |
24,015.9 |
|
LIABILITIES |
|
|
|
||||
Accounts payable |
$ |
1,507.3 |
|
|
$ |
1,177.0 |
|
Accrued expenses and other liabilities |
|
2,951.9 |
|
|
|
2,210.3 |
|
Notes payable |
|
5,975.2 |
|
|
|
5,412.4 |
|
Total liabilities |
|
10,434.4 |
|
|
|
8,799.7 |
|
EQUITY |
|
|
|
||||
Common stock,
399,040,704 shares issued and 347,377,037 shares outstanding at
397,190,100 shares issued and 356,015,843 shares outstanding at |
|
4.0 |
|
|
|
4.0 |
|
Additional paid-in capital |
|
3,317.7 |
|
|
|
3,274.8 |
|
Retained earnings |
|
17,631.6 |
|
|
|
13,644.3 |
|
|
|
(2,890.8 |
) |
|
|
(2,036.6 |
) |
Stockholders’ equity |
|
18,062.5 |
|
|
|
14,886.5 |
|
Noncontrolling interests |
|
373.0 |
|
|
|
329.7 |
|
Total equity |
|
18,435.5 |
|
|
|
15,216.2 |
|
Total liabilities and equity |
$ |
28,869.9 |
|
|
$ |
24,015.9 |
|
|
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(In millions, except per share data) |
||||||||||||||
Revenues |
$ |
8,788.1 |
|
|
$ |
7,284.6 |
|
|
$ |
23,840.6 |
|
|
$ |
19,664.9 |
|
Cost of sales |
|
5,879.3 |
|
|
|
5,212.6 |
|
|
|
16,214.9 |
|
|
|
14,196.0 |
|
Selling, general and administrative expense |
|
740.6 |
|
|
|
655.7 |
|
|
|
2,101.6 |
|
|
|
1,863.2 |
|
Gain on sale of assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(14.0 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
18.1 |
|
|
|
— |
|
|
|
18.1 |
|
Other (income) expense |
|
(15.1 |
) |
|
|
(17.4 |
) |
|
|
(39.8 |
) |
|
|
(28.2 |
) |
Income before income taxes |
|
2,183.3 |
|
|
|
1,415.6 |
|
|
|
5,563.9 |
|
|
|
3,629.8 |
|
Income tax expense |
|
524.0 |
|
|
|
299.1 |
|
|
|
1,316.5 |
|
|
|
784.1 |
|
Net income |
|
1,659.3 |
|
|
|
1,116.5 |
|
|
|
4,247.4 |
|
|
|
2,845.7 |
|
Net income attributable to noncontrolling interests |
|
11.5 |
|
|
|
1.0 |
|
|
|
21.7 |
|
|
|
8.9 |
|
Net income attributable to |
$ |
1,647.8 |
|
|
$ |
1,115.5 |
|
|
$ |
4,225.7 |
|
|
$ |
2,836.8 |
|
|
|
|
|
|
|
|
|
||||||||
Basic net income per common share attributable to |
$ |
4.70 |
|
|
$ |
3.10 |
|
|
$ |
11.96 |
|
|
$ |
7.83 |
|
Weighted average number of common shares |
|
350.8 |
|
|
|
359.7 |
|
|
|
353.3 |
|
|
|
362.2 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted net income per common share attributable to |
$ |
4.67 |
|
|
$ |
3.06 |
|
|
$ |
11.85 |
|
|
$ |
7.73 |
|
Adjusted weighted average number of common shares |
|
353.1 |
|
|
|
364.0 |
|
|
|
356.5 |
|
|
|
367.1 |
|
|
|
|
|
|
|
|
|
||||||||
Other Consolidated Financial Data |
|
|
|
|
|
|
|
||||||||
Interest charged to cost of sales |
$ |
35.4 |
|
|
$ |
35.4 |
|
|
$ |
103.4 |
|
|
$ |
102.8 |
|
Depreciation and amortization |
$ |
20.9 |
|
|
$ |
19.5 |
|
|
$ |
60.2 |
|
|
$ |
63.6 |
|
Interest incurred |
$ |
40.0 |
|
|
$ |
37.7 |
|
|
$ |
113.6 |
|
|
$ |
116.0 |
|
|
|||||||
|
|||||||
|
Nine Months Ended
|
||||||
|
|
2022 |
|
|
|
2021 |
|
|
(In millions) |
||||||
OPERATING ACTIVITIES |
|
|
|
||||
Net income |
$ |
4,247.4 |
|
|
$ |
2,845.7 |
|
Adjustments to reconcile net income to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
60.2 |
|
|
|
63.6 |
|
Stock-based compensation expense |
|
79.4 |
|
|
|
69.7 |
|
Deferred income taxes |
|
14.3 |
|
|
|
(2.1 |
) |
Inventory and land option charges |
|
30.6 |
|
|
|
17.6 |
|
Gain on sale of assets |
|
— |
|
|
|
(14.0 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
18.1 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Increase in construction in progress and finished homes |
|
(3,063.9 |
) |
|
|
(1,739.7 |
) |
Increase in residential land and lots – developed, under development, held for development and held for sale |
|
(1,005.1 |
) |
|
|
(1,349.8 |
) |
Increase in rental properties |
|
(1,129.6 |
) |
|
|
(196.0 |
) |
Increase in other assets |
|
(777.3 |
) |
|
|
(368.2 |
) |
Increase in mortgage loans held for sale |
|
(55.2 |
) |
|
|
(115.1 |
) |
Increase in accounts payable, accrued expenses and other liabilities |
|
1,036.4 |
|
|
|
735.7 |
|
Net cash used in operating activities |
|
(562.8 |
) |
|
|
(34.5 |
) |
INVESTING ACTIVITIES |
|
|
|
||||
Expenditures for property and equipment |
|
(108.0 |
) |
|
|
(46.0 |
) |
Proceeds from sale of assets |
|
— |
|
|
|
37.6 |
|
Expenditures related to rental properties |
|
— |
|
|
|
(173.9 |
) |
Payments related to business acquisitions, net of cash acquired |
|
(271.5 |
) |
|
|
(24.4 |
) |
Other investing activities |
|
6.6 |
|
|
|
(0.2 |
) |
Net cash used in investing activities |
|
(372.9 |
) |
|
|
(206.9 |
) |
FINANCING ACTIVITIES |
|
|
|
||||
Proceeds from notes payable |
|
2,625.0 |
|
|
|
914.1 |
|
Repayment of notes payable |
|
(2,051.2 |
) |
|
|
(792.8 |
) |
Payments on mortgage repurchase facility, net |
|
(88.9 |
) |
|
|
(39.0 |
) |
Proceeds from stock associated with certain employee benefit plans |
|
26.9 |
|
|
|
15.5 |
|
Cash paid for shares withheld for taxes |
|
(61.8 |
) |
|
|
(78.5 |
) |
Cash dividends paid |
|
(238.4 |
) |
|
|
(217.7 |
) |
Repurchases of common stock |
|
(859.7 |
) |
|
|
(661.4 |
) |
Net proceeds from issuance of Forestar common stock |
|
1.7 |
|
|
|
32.6 |
|
Net other financing activities |
|
29.2 |
|
|
|
(2.4 |
) |
Net cash used in financing activities |
|
(617.2 |
) |
|
|
(829.6 |
) |
Net decrease in cash, cash equivalents and restricted cash |
|
(1,552.9 |
) |
|
|
(1,071.0 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
3,237.2 |
|
|
|
3,040.1 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
1,684.3 |
|
|
$ |
1,969.1 |
|
|
|||||||||||||||||||
|
|||||||||||||||||||
|
|
|
|||||||||||||||||
|
|
Homebuilding |
|
Forestar (1) |
|
Financial Services |
|
Rental |
|
Eliminations and Other (2) |
|
Consolidated |
|||||||
|
|
(In millions) |
|||||||||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cash and cash equivalents |
|
$ |
1,207.2 |
|
$ |
146.3 |
|
$ |
126.3 |
|
$ |
133.9 |
|
$ |
42.0 |
|
|
$ |
1,655.7 |
Restricted cash |
|
|
16.2 |
|
|
— |
|
|
11.5 |
|
|
0.9 |
|
|
— |
|
|
|
28.6 |
Inventories: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction in progress and finished homes |
|
|
10,974.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
(170.9 |
) |
|
|
10,803.1 |
Residential land and lots |
|
|
6,962.9 |
|
|
2,054.3 |
|
|
— |
|
|
— |
|
|
(72.4 |
) |
|
|
8,944.8 |
Rental properties |
|
|
— |
|
|
— |
|
|
— |
|
|
1,976.2 |
|
|
(25.2 |
) |
|
|
1,951.0 |
|
|
|
17,936.9 |
|
|
2,054.3 |
|
|
— |
|
|
1,976.2 |
|
|
(268.5 |
) |
|
|
21,698.9 |
Mortgage loans held for sale |
|
|
— |
|
|
— |
|
|
2,082.5 |
|
|
— |
|
|
— |
|
|
|
2,082.5 |
Deferred income taxes, net |
|
|
145.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
12.1 |
|
|
|
157.4 |
Property and equipment, net |
|
|
346.2 |
|
|
5.5 |
|
|
4.0 |
|
|
1.6 |
|
|
124.0 |
|
|
|
481.3 |
Other assets |
|
|
2,113.5 |
|
|
61.7 |
|
|
256.7 |
|
|
18.3 |
|
|
151.8 |
|
|
|
2,602.0 |
|
|
|
134.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
29.2 |
|
|
|
163.5 |
|
|
$ |
21,899.6 |
|
$ |
2,267.8 |
|
$ |
2,481.0 |
|
$ |
2,130.9 |
|
$ |
90.6 |
|
|
$ |
28,869.9 |
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Accounts payable |
|
$ |
1,308.4 |
|
$ |
63.8 |
|
$ |
— |
|
$ |
212.2 |
|
$ |
(77.1 |
) |
|
$ |
1,507.3 |
Accrued expenses and other liabilities |
|
|
2,530.4 |
|
|
350.5 |
|
|
223.1 |
|
|
12.1 |
|
|
(164.2 |
) |
|
|
2,951.9 |
Notes payable |
|
|
3,688.9 |
|
|
705.6 |
|
|
1,405.7 |
|
|
175.0 |
|
|
— |
|
|
|
5,975.2 |
|
|
$ |
7,527.7 |
|
$ |
1,119.9 |
|
$ |
1,628.8 |
|
$ |
399.3 |
|
$ |
(241.3 |
) |
|
$ |
10,434.4 |
|
|
|
|||||||||||||||||
|
|
Homebuilding |
|
Forestar (1) |
|
Financial Services |
|
Rental |
|
Eliminations and Other (2) |
|
Consolidated |
|||||||
|
|
(In millions) |
|||||||||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cash and cash equivalents |
|
$ |
2,950.1 |
|
$ |
153.6 |
|
$ |
79.0 |
|
$ |
16.8 |
|
$ |
10.9 |
|
|
$ |
3,210.4 |
Restricted cash |
|
|
8.4 |
|
|
— |
|
|
18.0 |
|
|
0.4 |
|
|
— |
|
|
|
26.8 |
Inventories: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction in progress and finished homes |
|
|
7,848.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
(108.8 |
) |
|
|
7,739.2 |
Residential land and lots |
|
|
6,059.8 |
|
|
1,905.2 |
|
|
— |
|
|
— |
|
|
(46.9 |
) |
|
|
7,918.1 |
Rental properties |
|
|
— |
|
|
— |
|
|
— |
|
|
840.9 |
|
|
(19.1 |
) |
|
|
821.8 |
|
|
|
13,907.8 |
|
|
1,905.2 |
|
|
— |
|
|
840.9 |
|
|
(174.8 |
) |
|
|
16,479.1 |
Mortgage loans held for sale |
|
|
— |
|
|
— |
|
|
2,027.3 |
|
|
— |
|
|
— |
|
|
|
2,027.3 |
Deferred income taxes, net |
|
|
159.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
(3.9 |
) |
|
|
155.3 |
Property and equipment, net |
|
|
303.3 |
|
|
2.9 |
|
|
3.5 |
|
|
0.6 |
|
|
82.6 |
|
|
|
392.9 |
Other assets |
|
|
1,468.7 |
|
|
40.0 |
|
|
107.6 |
|
|
6.3 |
|
|
(62.0 |
) |
|
|
1,560.6 |
|
|
|
134.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
29.2 |
|
|
|
163.5 |
|
|
$ |
18,931.8 |
|
$ |
2,101.7 |
|
$ |
2,235.4 |
|
$ |
865.0 |
|
$ |
(118.0 |
) |
|
$ |
24,015.9 |
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Accounts payable |
|
$ |
1,073.7 |
|
$ |
47.4 |
|
$ |
— |
|
$ |
55.9 |
|
$ |
— |
|
|
$ |
1,177.0 |
Accrued expenses and other liabilities |
|
|
1,941.3 |
|
|
333.9 |
|
|
88.6 |
|
|
15.0 |
|
|
(168.5 |
) |
|
|
2,210.3 |
Notes payable |
|
|
3,214.0 |
|
|
704.5 |
|
|
1,494.6 |
|
|
— |
|
|
(0.7 |
) |
|
|
5,412.4 |
|
|
$ |
6,229.0 |
|
$ |
1,085.8 |
|
$ |
1,583.2 |
|
$ |
70.9 |
|
$ |
(169.2 |
) |
|
$ |
8,799.7 |
_________________ |
|
(1) |
Amounts are presented on Forestar’s historical cost basis. |
(2) |
Amounts include the balances of the Company's other businesses, the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments. |
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||
|
|
Homebuilding |
|
Forestar (1) |
|
Financial Services |
|
Rental |
|
Eliminations and Other (2) |
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales |
|
$ |
8,336.4 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
8,336.4 |
|
Land/lot sales and other |
|
|
11.4 |
|
|
|
308.5 |
|
|
|
— |
|
|
|
— |
|
|
|
(232.2 |
) |
|
|
87.7 |
|
Rental property sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
109.7 |
|
|
|
— |
|
|
|
109.7 |
|
Financial services |
|
|
— |
|
|
|
— |
|
|
|
254.3 |
|
|
|
— |
|
|
|
— |
|
|
|
254.3 |
|
|
|
|
8,347.8 |
|
|
|
308.5 |
|
|
|
254.3 |
|
|
|
109.7 |
|
|
|
(232.2 |
) |
|
|
8,788.1 |
|
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales (3) |
|
|
5,826.8 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(52.5 |
) |
|
|
5,774.3 |
|
Land/lot sales and other |
|
|
7.3 |
|
|
|
233.6 |
|
|
|
— |
|
|
|
— |
|
|
|
(197.4 |
) |
|
|
43.5 |
|
Rental property sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
50.9 |
|
|
|
— |
|
|
|
50.9 |
|
Inventory and land option charges |
|
|
9.5 |
|
|
|
1.0 |
|
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
10.6 |
|
|
|
|
5,843.6 |
|
|
|
234.6 |
|
|
|
— |
|
|
|
51.0 |
|
|
|
(249.9 |
) |
|
|
5,879.3 |
|
Selling, general and administrative expense |
|
|
553.2 |
|
|
|
24.1 |
|
|
|
137.3 |
|
|
|
22.8 |
|
|
|
3.2 |
|
|
|
740.6 |
|
Other (income) expense |
|
|
(3.7 |
) |
|
|
(2.9 |
) |
|
|
(11.3 |
) |
|
|
(6.7 |
) |
|
|
9.5 |
|
|
|
(15.1 |
) |
Income before income taxes |
|
$ |
1,954.7 |
|
|
$ |
52.7 |
|
|
$ |
128.3 |
|
|
$ |
42.6 |
|
|
$ |
5.0 |
|
|
$ |
2,183.3 |
|
|
|
Nine Months Ended |
||||||||||||||||||||||
|
|
Homebuilding |
|
Forestar (1) |
|
Financial Services |
|
Rental |
|
Eliminations and Other (2) |
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales |
|
$ |
22,492.0 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
22,492.0 |
|
Land/lot sales and other |
|
|
42.0 |
|
|
|
1,137.7 |
|
|
|
— |
|
|
|
— |
|
|
|
(981.0 |
) |
|
|
198.7 |
|
Rental property sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
489.1 |
|
|
|
— |
|
|
|
489.1 |
|
Financial services |
|
|
— |
|
|
|
— |
|
|
|
660.8 |
|
|
|
— |
|
|
|
— |
|
|
|
660.8 |
|
|
|
|
22,534.0 |
|
|
|
1,137.7 |
|
|
|
660.8 |
|
|
|
489.1 |
|
|
|
(981.0 |
) |
|
|
23,840.6 |
|
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales (3) |
|
|
15,996.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(133.9 |
) |
|
|
15,862.1 |
|
Land/lot sales and other |
|
|
27.7 |
|
|
|
895.9 |
|
|
|
— |
|
|
|
— |
|
|
|
(822.1 |
) |
|
|
101.5 |
|
Rental property sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
225.8 |
|
|
|
(5.1 |
) |
|
|
220.7 |
|
Inventory and land option charges |
|
|
23.2 |
|
|
|
7.0 |
|
|
|
— |
|
|
|
0.4 |
|
|
|
— |
|
|
|
30.6 |
|
|
|
|
16,046.9 |
|
|
|
902.9 |
|
|
|
— |
|
|
|
226.2 |
|
|
|
(961.1 |
) |
|
|
16,214.9 |
|
Selling, general and administrative expense |
|
|
1,558.1 |
|
|
|
69.9 |
|
|
|
400.6 |
|
|
|
64.2 |
|
|
|
8.8 |
|
|
|
2,101.6 |
|
Other (income) expense |
|
|
(11.6 |
) |
|
|
(4.5 |
) |
|
|
(28.0 |
) |
|
|
(16.4 |
) |
|
|
20.7 |
|
|
|
(39.8 |
) |
Income before income taxes |
|
$ |
4,940.6 |
|
|
$ |
169.4 |
|
|
$ |
288.2 |
|
|
$ |
215.1 |
|
|
$ |
(49.4 |
) |
|
$ |
5,563.9 |
|
Summary Cash Flow Information |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash provided by (used in) operating activities |
|
$ |
124.5 |
|
|
$ |
(10.2 |
) |
|
$ |
150.1 |
|
|
$ |
(826.4 |
) |
|
$ |
(0.8 |
) |
|
$ |
(562.8 |
) |
_________________ |
|
(1) |
Results are presented on Forestar’s historical cost basis. |
(2) |
Amounts include the results of the Company's other businesses, reconciling amounts between segment and consolidated balances and the elimination of intercompany transactions. |
(3) |
Amount in the Eliminations and Other 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. |
SEGMENT INFORMATION (UNAUDITED) |
||||||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||
|
|
Homebuilding |
|
Forestar (1) |
|
Financial Services |
|
Rental |
|
Eliminations and Other (2) |
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales |
|
$ |
7,040.1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,040.1 |
|
Land/lot sales and other |
|
|
7.1 |
|
|
|
312.9 |
|
|
|
— |
|
|
|
— |
|
|
|
(264.2 |
) |
|
|
55.8 |
|
Rental property sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
23.1 |
|
|
|
(23.1 |
) |
|
|
— |
|
Financial services |
|
|
— |
|
|
|
— |
|
|
|
188.7 |
|
|
|
— |
|
|
|
— |
|
|
|
188.7 |
|
|
|
|
7,047.2 |
|
|
|
312.9 |
|
|
|
188.7 |
|
|
|
23.1 |
|
|
|
(287.3 |
) |
|
|
7,284.6 |
|
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales (3) |
|
|
5,219.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(40.0 |
) |
|
|
5,179.2 |
|
Land/lot sales and other |
|
|
2.7 |
|
|
|
256.4 |
|
|
|
— |
|
|
|
— |
|
|
|
(231.3 |
) |
|
|
27.8 |
|
Rental property sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11.7 |
|
|
|
(11.7 |
) |
|
|
— |
|
Inventory and land option charges |
|
|
4.9 |
|
|
|
0.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5.6 |
|
|
|
|
5,226.8 |
|
|
|
257.1 |
|
|
|
— |
|
|
|
11.7 |
|
|
|
(283.0 |
) |
|
|
5,212.6 |
|
Selling, general and administrative expense |
|
|
500.7 |
|
|
|
16.9 |
|
|
|
127.0 |
|
|
|
8.8 |
|
|
|
2.3 |
|
|
|
655.7 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
18.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18.1 |
|
Other (income) expense |
|
|
(4.9 |
) |
|
|
(0.3 |
) |
|
|
(8.6 |
) |
|
|
(7.3 |
) |
|
|
3.7 |
|
|
|
(17.4 |
) |
Income before income taxes |
|
$ |
1,324.6 |
|
|
$ |
21.1 |
|
|
$ |
70.3 |
|
|
$ |
9.9 |
|
|
$ |
(10.3 |
) |
|
$ |
1,415.6 |
|
|
|
Nine Months Ended |
||||||||||||||||||||||
|
|
Homebuilding |
|
Forestar (1) |
|
Financial Services |
|
Rental |
|
Eliminations and Other (2) |
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales |
|
$ |
18,909.2 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
18,909.2 |
|
Land/lot sales and other |
|
|
40.5 |
|
|
|
907.1 |
|
|
|
— |
|
|
|
— |
|
|
|
(793.0 |
) |
|
|
154.6 |
|
Rental property sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
54.9 |
|
|
|
(54.9 |
) |
|
|
— |
|
Financial services |
|
|
— |
|
|
|
— |
|
|
|
601.1 |
|
|
|
— |
|
|
|
— |
|
|
|
601.1 |
|
|
|
|
18,949.7 |
|
|
|
907.1 |
|
|
|
601.1 |
|
|
|
54.9 |
|
|
|
(847.9 |
) |
|
|
19,664.9 |
|
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales (3) |
|
|
14,196.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(103.3 |
) |
|
|
14,093.0 |
|
Land/lot sales and other |
|
|
29.0 |
|
|
|
752.2 |
|
|
|
— |
|
|
|
— |
|
|
|
(695.8 |
) |
|
|
85.4 |
|
Rental property sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
29.6 |
|
|
|
(29.6 |
) |
|
|
— |
|
Inventory and land option charges |
|
|
16.0 |
|
|
|
1.6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17.6 |
|
|
|
|
14,241.3 |
|
|
|
753.8 |
|
|
|
— |
|
|
|
29.6 |
|
|
|
(828.7 |
) |
|
|
14,196.0 |
|
Selling, general and administrative expense |
|
|
1,417.8 |
|
|
|
48.7 |
|
|
|
360.4 |
|
|
|
29.6 |
|
|
|
6.7 |
|
|
|
1,863.2 |
|
Gain on sale of assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(14.0 |
) |
|
|
(14.0 |
) |
Loss on extinguishment of debt |
|
|
— |
|
|
|
18.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18.1 |
|
Other (income) expense |
|
|
(8.7 |
) |
|
|
(1.4 |
) |
|
|
(21.4 |
) |
|
|
(16.3 |
) |
|
|
19.6 |
|
|
|
(28.2 |
) |
Income before income taxes |
|
$ |
3,299.3 |
|
|
$ |
87.9 |
|
|
$ |
262.1 |
|
|
$ |
12.0 |
|
|
$ |
(31.5 |
) |
|
$ |
3,629.8 |
|
Summary Cash Flow Information |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash provided by (used in) operating activities |
|
$ |
450.7 |
|
|
$ |
(340.6 |
) |
|
$ |
96.2 |
|
|
$ |
(405.6 |
) |
|
$ |
164.8 |
|
|
$ |
(34.5 |
) |
_________________ |
|
(1) |
Results are presented on Forestar’s historical cost basis. |
(2) |
Amounts include the results of the Company's other businesses, reconciling amounts between segment and consolidated balances and the elimination of intercompany transactions. |
(3) |
Amount in the Eliminations and Other 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 |
|
Nine Months Ended |
||||||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||||||
|
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
||||
Northwest |
|
886 |
|
$ |
532.8 |
|
1,086 |
|
$ |
592.7 |
|
3,456 |
|
$ |
1,958.0 |
|
3,558 |
|
$ |
1,779.8 |
Southwest |
|
1,967 |
|
|
1,038.1 |
|
2,439 |
|
|
1,114.8 |
|
6,863 |
|
|
3,625.1 |
|
7,633 |
|
|
3,268.1 |
South Central |
|
5,176 |
|
|
1,888.3 |
|
5,203 |
|
|
1,633.9 |
|
18,366 |
|
|
6,346.3 |
|
19,073 |
|
|
5,490.2 |
Southeast |
|
3,979 |
|
|
1,612.7 |
|
5,415 |
|
|
1,784.1 |
|
17,222 |
|
|
6,538.5 |
|
19,987 |
|
|
6,147.3 |
East |
|
3,274 |
|
|
1,265.8 |
|
2,750 |
|
|
889.9 |
|
11,019 |
|
|
4,133.8 |
|
10,825 |
|
|
3,376.2 |
North |
|
1,411 |
|
|
603.0 |
|
1,059 |
|
|
433.5 |
|
5,629 |
|
|
2,344.8 |
|
4,353 |
|
|
1,652.3 |
|
|
16,693 |
|
$ |
6,940.7 |
|
17,952 |
|
$ |
6,448.9 |
|
62,555 |
|
$ |
24,946.5 |
|
65,429 |
|
$ |
21,713.9 |
HOMES CLOSED |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||||||
|
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
||||
Northwest |
|
1,194 |
|
$ |
673.9 |
|
1,348 |
|
$ |
662.5 |
|
3,365 |
|
$ |
1,859.3 |
|
3,716 |
|
$ |
1,758.2 |
Southwest |
|
2,539 |
|
|
1,288.9 |
|
2,465 |
|
|
1,020.5 |
|
6,804 |
|
|
3,335.4 |
|
6,867 |
|
|
2,758.8 |
South Central |
|
6,117 |
|
|
2,077.3 |
|
5,575 |
|
|
1,542.9 |
|
17,164 |
|
|
5,606.0 |
|
16,006 |
|
|
4,288.9 |
Southeast |
|
5,740 |
|
|
2,111.7 |
|
6,558 |
|
|
1,960.6 |
|
16,568 |
|
|
5,868.2 |
|
17,783 |
|
|
5,135.6 |
East |
|
3,782 |
|
|
1,385.4 |
|
3,975 |
|
|
1,227.9 |
|
10,379 |
|
|
3,677.0 |
|
11,062 |
|
|
3,301.7 |
North |
|
1,936 |
|
|
799.2 |
|
1,667 |
|
|
625.7 |
|
5,252 |
|
|
2,146.1 |
|
4,594 |
|
|
1,666.0 |
|
|
21,308 |
|
$ |
8,336.4 |
|
21,588 |
|
$ |
7,040.1 |
|
59,532 |
|
$ |
22,492.0 |
|
60,028 |
|
$ |
18,909.2 |
SALES ORDER BACKLOG |
||||||||||
|
|
|
|
|
|
|
|
|
||
|
|
As of |
||||||||
|
|
2022 |
|
2021 |
||||||
|
|
Homes |
|
Value |
|
Homes |
|
Value |
||
Northwest |
|
1,045 |
|
$ |
596.4 |
|
1,386 |
|
$ |
714.7 |
Southwest |
|
3,497 |
|
|
1,785.6 |
|
4,508 |
|
|
1,850.6 |
South Central |
|
9,935 |
|
|
3,565.7 |
|
10,405 |
|
|
3,138.0 |
Southeast |
|
7,973 |
|
|
3,204.9 |
|
9,126 |
|
|
2,980.3 |
East |
|
4,857 |
|
|
1,926.2 |
|
4,620 |
|
|
1,500.9 |
North |
|
1,937 |
|
|
838.8 |
|
2,164 |
|
|
837.7 |
|
|
29,244 |
|
$ |
11,917.6 |
|
32,209 |
|
$ |
11,022.2 |
|
|||||||||||||||||
|
|||||||||||||||||
|
|
|
|
||||||||||||||
|
Land/Lots Owned |
|
Lots Controlled Through Land and Lot Purchase Contracts (1) |
|
Total Land/Lots Owned and Controlled |
|
Land/Lots Owned |
|
Lots Controlled Through Land and Lot Purchase Contracts (1) |
|
Total Land/Lots Owned and Controlled |
||||||
Northwest |
10,500 |
|
|
37,300 |
|
|
47,800 |
|
|
9,000 |
|
|
31,400 |
|
|
40,400 |
|
Southwest |
21,600 |
|
|
39,700 |
|
|
61,300 |
|
|
22,800 |
|
|
34,300 |
|
|
57,100 |
|
South Central |
38,800 |
|
|
69,200 |
|
|
108,000 |
|
|
42,800 |
|
|
79,000 |
|
|
121,800 |
|
Southeast |
25,700 |
|
|
142,200 |
|
|
167,900 |
|
|
26,700 |
|
|
125,500 |
|
|
152,200 |
|
East |
22,000 |
|
|
110,800 |
|
|
132,800 |
|
|
17,300 |
|
|
83,100 |
|
|
100,400 |
|
North |
12,500 |
|
|
67,900 |
|
|
80,400 |
|
|
9,200 |
|
|
49,200 |
|
|
58,400 |
|
|
131,100 |
|
|
467,100 |
|
|
598,200 |
|
|
127,800 |
|
|
402,500 |
|
|
530,300 |
|
|
22 |
% |
|
78 |
% |
|
100 |
% |
|
24 |
% |
|
76 |
% |
|
100 |
% |
_________________ |
|
(1) |
Lots controlled at |
HOMES IN INVENTORY (1) |
||||
|
|
|
|
|
|
|
|
|
|
Northwest |
|
3,300 |
|
2,600 |
Southwest |
|
6,600 |
|
5,500 |
South Central |
|
16,300 |
|
14,000 |
Southeast |
|
16,100 |
|
13,600 |
East |
|
8,300 |
|
7,300 |
North |
|
5,800 |
|
4,800 |
|
|
56,400 |
|
47,800 |
_________________ |
|
(1) |
Homes in inventory exclude 5,820 and 1,900 homes related to our single-family rental operations at |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220721005171/en/
Vice President of Investor Relations
InvestorRelations@drhorton.com
Source:
FAQ
What were D.R. Horton's earnings results for Q3 2022?
What is the updated revenue guidance for D.R. Horton for fiscal 2022?
How did D.R. Horton perform in terms of home sales in Q3 2022?
What is the status of D.R. Horton's sales orders in Q3 2022?
What were the financial highlights of D.R. Horton for the nine months ended June 30, 2022?
