D.R. Horton, Inc., America’s Builder, Reports Fiscal 2024 First Quarter Earnings and Declares Quarterly Dividend of $0.30 Per Share
- Net income of $947.4 million for the first quarter
- Consolidated revenues increased to $7.7 billion
- Increase in homes closed, net sales orders, and rental operations pre-tax income
- Consistent cash dividends and share repurchases
- Net income decreased by 1% compared to the same quarter of fiscal 2023
- Cancellation rate for sales orders increased to 19% from 27% in the prior year quarter
Insights
Financial Performance and Market Trends: The reported net income of D.R. Horton, a leading home construction company, presents a nuanced picture. Despite a slight decrease in net income year-over-year, the company has shown resilience with a 6% increase in consolidated revenues. This growth amidst a backdrop of elevated inflation and mortgage rates is indicative of robust demand for housing, particularly in affordable segments. The increase in net sales orders by 35% further underscores the market's appetite for new homes, possibly driven by demographic trends and a shortage in supply.
From a financial standpoint, the company's strong liquidity position, with a cash balance of $3.3 billion and available credit facilities of $3.1 billion, suggests a robust capacity to navigate market fluctuations. Moreover, the debt-to-total capital ratio of 18.6% is relatively low, which may be viewed favorably by investors as it implies a conservative leverage strategy. The share repurchase activity, coupled with dividend payments, reflects a shareholder-friendly capital allocation policy.
Industry Implications and Consumer Demand: The reported increase in homes closed and the value of these homes points to a strategic success in targeting the affordable housing segment, which is likely to have a broad consumer base. The 12% increase in homes closed indicates that D.R. Horton is effectively capitalizing on the current housing demand. The substantial backlog, despite a decrease compared to the previous year, still represents a significant pipeline of future revenue, though it may also signal a potential for over-supply if market demand shifts.
The cancellation rate dropping to 19% from 27% is another positive sign, suggesting improved consumer confidence or possibly more stringent sales policies. Understanding the factors driving these changes in consumer behavior is critical for forecasting future market trends and aligning production with demand.
Housing Market Dynamics: The increase in net sales orders and the strategic positioning of D.R. Horton in the affordable housing market align with broader economic indicators of a persistent housing shortage in certain price segments. The demographic trends mentioned, likely referring to millennials entering the home-buying market, support sustained demand. However, the company's success in turning inventory and maintaining capital efficiency will be critical in a market that is sensitive to interest rate changes and economic headwinds.
The company's investment in rental operations, despite a decrease in pre-tax income from this segment, aligns with a growing trend towards diversification in the real estate market. This could provide a hedge against cyclical downturns in home sales. The performance of Forestar, the majority-owned subsidiary, further indicates the strategic importance of controlling the supply chain in the land development process to maintain competitive advantage and profitability.
Fiscal 2024 First Quarter Highlights - comparisons to the prior year quarter
-
Net income attributable to D.R. Horton of
$947.4 million $2.82 -
Consolidated pre-tax income of
$1.2 billion 16.1% -
Consolidated revenues increased
6% to$7.7 billion -
Homes closed increased
12% to 19,340 homes and8% in value to$7.3 billion -
Net sales orders increased
35% to 18,069 homes and38% in value to$6.8 billion -
Rental operations pre-tax income of
$31.3 million $195.3 million -
Repurchased 3.3 million shares of common stock for
$398.3 million $99.9 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 first fiscal quarter ended December 31, 2023 increased
Net cash used in operations was
The Company's return on equity (ROE) was
Donald R. Horton, Chairman of the Board, said, “The D.R. Horton team delivered solid results in the first fiscal quarter of 2024, highlighted by earnings of
“We are well-positioned to meet changing market conditions with our affordable product offerings and flexible lot supply and are focused on turning our inventory to maximize returns and capital efficiency in each of our communities. 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.”
Homebuilding Operations
Homebuilding revenue for the first quarter of fiscal 2024 increased
Net sales orders for the first quarter ended December 31, 2023 increased
At December 31, 2023, the Company had 42,600 homes in inventory, of which 28,800 were unsold. 9,000 of the Company’s unsold homes at December 31, 2023 were completed, of which 730 had been completed for greater than six months. The Company’s homebuilding land and lot portfolio totaled 607,200 lots at the end of the quarter, of which
Rental Operations
The Company's rental operations generated
During the first quarter of fiscal 2024, the Company sold 379 single-family rental homes for
During the first quarter of fiscal 2024, the Company sold 300 multi-family rental units for
Forestar
Forestar Group Inc. (NYSE:FOR) (“Forestar”) is a publicly traded residential lot development company that is a majority-owned subsidiary of D.R. Horton. 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 first quarter ended December 31, 2023, Forestar sold 3,150 lots and generated
Financial Services
For the first quarter ended December 31, 2023, financial services revenues were
Dividends
During the first quarter of fiscal 2024, the Company paid cash dividends of
Share Repurchases
The Company repurchased 3.3 million shares of common stock for
Guidance
Based on current market conditions and the Company’s results for the first quarter of fiscal 2024, D.R. Horton is updating its fiscal 2024 guidance as follows:
-
Consolidated revenues of approximately
$36.0 billion $37.3 billion - Homes closed by homebuilding operations of 87,000 homes to 90,000 homes
-
Income tax rate of approximately
24.0%
The Company is also reiterating its fiscal 2024 guidance as follows:
-
Cash flow provided by homebuilding operations of approximately
$3.0 billion -
Share repurchases of approximately
$1.5 billion
The Company plans to also provide guidance for its second quarter of fiscal 2024 on its conference call today.
Conference Call and Webcast Details
The Company will host a conference call today (Tuesday, January 23) at 8:30 a.m. Eastern Time. The dial-in number is 888-506-0062 (reference entry code 566897), 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
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 well-positioned to meet changing market conditions with our affordable product offerings and flexible lot supply and are focused on turning our inventory to maximize returns and capital efficiency in each of our communities and that 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 section.
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, rental and lot development industries and changes in economic, real estate or other conditions; adverse developments affecting the capital markets and financial institutions, which could limit our ability to access capital and increase our cost of capital and impact our liquidity and capital resources; 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, investments or other strategic initiatives 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 and obtaining regulatory approvals; the effects of public health issues such as a major epidemic or pandemic 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 information technology failures, data security breaches, and the failure to satisfy privacy and data protection laws and regulations; 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; and actions by activist stockholders. 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 or will be filed with the Securities and Exchange Commission.
D.R. HORTON, INC. AND SUBSIDIARIES |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(UNAUDITED) |
|||||||
|
December 31,
|
|
September 30,
|
||||
|
(In millions) |
||||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
3,323.4 |
|
|
$ |
3,873.6 |
|
Restricted cash |
|
21.2 |
|
|
|
26.5 |
|
Total cash, cash equivalents and restricted cash |
|
3,344.6 |
|
|
|
3,900.1 |
|
Inventories: |
|
|
|
||||
Construction in progress and finished homes |
|
9,467.7 |
|
|
|
9,001.4 |
|
Residential land and lots — developed, under development, held for development and held for sale |
|
11,635.1 |
|
|
|
10,680.6 |
|
Rental properties |
|
2,947.5 |
|
|
|
2,691.3 |
|
Total inventory |
|
24,050.3 |
|
|
|
22,373.3 |
|
Mortgage loans held for sale |
|
2,044.1 |
|
|
|
2,519.9 |
|
Deferred income taxes, net of valuation allowance of at December 31, 2023 and September 30, 2023 |
|
175.9 |
|
|
|
187.2 |
|
Property and equipment, net |
|
475.5 |
|
|
|
445.4 |
|
Other assets |
|
3,127.7 |
|
|
|
2,993.0 |
|
Goodwill |
|
163.5 |
|
|
|
163.5 |
|
Total assets |
$ |
33,381.6 |
|
|
$ |
32,582.4 |
|
LIABILITIES |
|
|
|
||||
Accounts payable |
$ |
1,260.3 |
|
|
$ |
1,246.2 |
|
Accrued expenses and other liabilities |
|
3,227.4 |
|
|
|
3,103.8 |
|
Notes payable |
|
5,290.4 |
|
|
|
5,094.5 |
|
Total liabilities |
|
9,778.1 |
|
|
|
9,444.5 |
|
EQUITY |
|
|
|
||||
Common stock, |
|
||||||
401,869,172 shares issued and 332,190,334 shares outstanding at December 31, 2023 and |
|||||||
401,202,253 shares issued and 334,848,565 shares outstanding at September 30, 2023 |
|
4.0 |
|
|
4.0 |
|
|
Additional paid-in capital |
|
3,440.2 |
|
|
|
3,432.2 |
|
Retained earnings |
|
24,437.3 |
|
|
|
23,589.8 |
|
Treasury stock, 69,678,838 shares and 66,353,688 shares at |
|
||||||
December 31, 2023 and September 30, 2023, respectively, at cost |
|
(4,728.1 |
) |
|
(4,329.8 |
) |
|
Stockholders’ equity |
|
23,153.4 |
|
|
|
22,696.2 |
|
Noncontrolling interests |
|
450.1 |
|
|
|
441.7 |
|
Total equity |
|
23,603.5 |
|
|
|
23,137.9 |
|
Total liabilities and equity |
$ |
33,381.6 |
|
|
$ |
32,582.4 |
|
D.R. HORTON, INC. AND SUBSIDIARIES |
|||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
(UNAUDITED) |
|||||||
|
Three Months Ended
|
||||||
|
2023 |
|
2022 |
||||
|
(In millions, except per share data) |
||||||
Revenues |
$ |
7,726.0 |
|
|
$ |
7,257.8 |
|
Cost of sales |
|
5,719.8 |
|
|
|
5,291.3 |
|
Selling, general and administrative expense |
|
835.0 |
|
|
|
737.0 |
|
Other (income) expense |
|
(76.3 |
) |
|
|
(37.7 |
) |
Income before income taxes |
|
1,247.5 |
|
|
|
1,267.2 |
|
Income tax expense |
|
291.8 |
|
|
|
298.9 |
|
Net income |
|
955.7 |
|
|
|
968.3 |
|
Net income attributable to noncontrolling interests |
|
8.3 |
|
|
|
9.6 |
|
Net income attributable to D.R. Horton, Inc. |
$ |
947.4 |
|
|
$ |
958.7 |
|
|
|
|
|
||||
Basic net income per common share attributable to D.R. Horton, Inc. |
$ |
2.84 |
|
|
$ |
2.79 |
|
Weighted average number of common shares |
|
333.3 |
|
|
|
344.2 |
|
|
|
|
|
||||
Diluted net income per common share attributable to D.R. Horton, Inc. |
$ |
2.82 |
|
|
$ |
2.76 |
|
Adjusted weighted average number of common shares |
|
335.7 |
|
|
|
346.9 |
|
|
|
|
|
||||
Other Consolidated Financial Data |
|
|
|
||||
Interest charged to cost of sales |
$ |
28.0 |
|
|
$ |
28.5 |
|
Depreciation and amortization |
$ |
20.0 |
|
|
$ |
19.8 |
|
Interest incurred |
$ |
42.6 |
|
|
$ |
46.2 |
|
D.R. HORTON, INC. AND SUBSIDIARIES |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(UNAUDITED) |
|||||||
|
Three Months Ended
|
||||||
|
2023 |
|
2022 |
||||
|
(In millions) |
||||||
OPERATING ACTIVITIES |
|
|
|
||||
Net income |
$ |
955.7 |
|
|
$ |
968.3 |
|
Adjustments to reconcile net income to net cash (used in) provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
20.0 |
|
|
|
19.8 |
|
Stock-based compensation expense |
|
40.9 |
|
|
|
22.9 |
|
Deferred income taxes |
|
11.3 |
|
|
|
3.2 |
|
Inventory and land option charges |
|
6.1 |
|
|
|
27.5 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
(Increase) decrease in construction in progress and finished homes |
|
(466.4 |
) |
|
|
320.7 |
|
Increase in residential land and lots – developed, under development, held for development and held for sale |
|
(937.8 |
) |
|
|
(637.5 |
) |
Increase in rental properties |
|
(256.5 |
) |
|
|
(357.0 |
) |
(Increase) decrease in other assets |
|
(130.0 |
) |
|
|
330.2 |
|
Decrease in mortgage loans held for sale |
|
475.8 |
|
|
|
603.3 |
|
Increase (decrease) in accounts payable, accrued expenses and other liabilities |
|
127.5 |
|
|
|
(472.3 |
) |
Net cash (used in) provided by operating activities |
|
(153.4 |
) |
|
|
829.1 |
|
INVESTING ACTIVITIES |
|
|
|
||||
Expenditures for property and equipment |
|
(47.6 |
) |
|
|
(47.5 |
) |
Proceeds from sale of assets |
|
9.9 |
|
|
|
— |
|
Payments related to business acquisitions, net of cash acquired |
|
(1.0 |
) |
|
|
(97.1 |
) |
Other investing activities |
|
(0.6 |
) |
|
|
1.7 |
|
Net cash used in investing activities |
|
(39.3 |
) |
|
|
(142.9 |
) |
FINANCING ACTIVITIES |
|
|
|
||||
Proceeds from notes payable |
|
720.0 |
|
|
|
300.0 |
|
Repayment of notes payable |
|
(170.0 |
) |
|
|
(300.0 |
) |
Payments on mortgage repurchase facility, net |
|
(389.9 |
) |
|
|
(404.4 |
) |
Proceeds from stock associated with certain employee benefit plans |
|
1.6 |
|
|
|
5.5 |
|
Cash paid for shares withheld for taxes |
|
(37.5 |
) |
|
|
(25.7 |
) |
Cash dividends paid |
|
(99.9 |
) |
|
|
(86.1 |
) |
Repurchases of common stock |
|
(376.9 |
) |
|
|
(118.1 |
) |
Net other financing activities |
|
(10.2 |
) |
|
|
(17.8 |
) |
Net cash used in financing activities |
|
(362.8 |
) |
|
|
(646.6 |
) |
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
(555.5 |
) |
|
|
39.6 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
3,900.1 |
|
|
|
2,572.9 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
3,344.6 |
|
|
$ |
2,612.5 |
|
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES: |
|
|
|
||||
Notes payable issued for inventory |
$ |
21.9 |
|
|
$ |
31.2 |
|
Stock issued under employee incentive plans |
$ |
66.5 |
|
|
$ |
46.9 |
|
Repurchases of common stock not settled |
$ |
18.3 |
|
|
$ |
— |
|
D.R. HORTON, INC. AND SUBSIDIARIES |
||||||||||||||||||||
SEGMENT INFORMATION |
||||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||||
|
|
December 31, 2023 |
||||||||||||||||||
|
|
Homebuilding |
|
Rental |
|
Forestar |
|
Financial
|
|
Eliminations
|
|
Consolidated |
||||||||
|
|
(In millions) |
||||||||||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents |
|
$ |
2,504.1 |
|
$ |
117.7 |
|
|
$ |
458.9 |
|
$ |
226.9 |
|
$ |
15.8 |
|
|
$ |
3,323.4 |
Restricted cash |
|
|
6.0 |
|
|
2.2 |
|
|
|
— |
|
|
13.0 |
|
|
— |
|
|
|
21.2 |
Inventories: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Construction in progress and finished homes |
|
|
9,602.5 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
(134.8 |
) |
|
|
9,467.7 |
Residential land and lots |
|
|
9,764.4 |
|
|
— |
|
|
|
2,009.8 |
|
|
— |
|
|
(139.1 |
) |
|
|
11,635.1 |
Rental properties |
|
|
— |
|
|
2,962.7 |
|
|
|
— |
|
|
— |
|
|
(15.2 |
) |
|
|
2,947.5 |
|
|
|
19,366.9 |
|
|
2,962.7 |
|
|
|
2,009.8 |
|
|
— |
|
|
(289.1 |
) |
|
|
24,050.3 |
Mortgage loans held for sale |
|
|
— |
|
|
— |
|
|
|
— |
|
|
2,044.1 |
|
|
— |
|
|
|
2,044.1 |
Deferred income taxes, net |
|
|
218.0 |
|
|
(19.9 |
) |
|
|
— |
|
|
— |
|
|
(22.2 |
) |
|
|
175.9 |
Property and equipment, net |
|
|
444.8 |
|
|
2.4 |
|
|
|
5.8 |
|
|
4.3 |
|
|
18.2 |
|
|
|
475.5 |
Other assets |
|
|
2,670.6 |
|
|
35.6 |
|
|
|
59.3 |
|
|
386.9 |
|
|
(24.7 |
) |
|
|
3,127.7 |
Goodwill |
|
|
134.3 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
29.2 |
|
|
|
163.5 |
|
|
$ |
25,344.7 |
|
$ |
3,100.7 |
|
|
$ |
2,533.8 |
|
$ |
2,675.2 |
|
$ |
(272.8 |
) |
|
$ |
33,381.6 |
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Accounts payable |
|
$ |
1,017.0 |
|
$ |
424.0 |
|
|
$ |
65.3 |
|
$ |
— |
|
$ |
(246.0 |
) |
|
$ |
1,260.3 |
Accrued expenses and other liabilities |
|
|
2,761.4 |
|
|
34.6 |
|
|
|
354.4 |
|
|
354.4 |
|
|
(277.4 |
) |
|
|
3,227.4 |
Notes payable |
|
|
2,355.4 |
|
|
950.0 |
|
|
|
705.3 |
|
|
1,279.7 |
|
|
— |
|
|
|
5,290.4 |
|
|
$ |
6,133.8 |
|
$ |
1,408.6 |
|
|
$ |
1,125.0 |
|
$ |
1,634.1 |
|
$ |
(523.4 |
) |
|
$ |
9,778.1 |
|
|
September 30, 2023 |
||||||||||||||||||
|
|
Homebuilding |
|
Rental |
|
Forestar |
|
Financial
|
|
Eliminations
|
|
Consolidated |
||||||||
|
|
(In millions) |
||||||||||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents |
|
$ |
2,920.2 |
|
$ |
136.1 |
|
|
$ |
616.0 |
|
$ |
189.1 |
|
$ |
12.2 |
|
|
$ |
3,873.6 |
Restricted cash |
|
|
6.5 |
|
|
3.3 |
|
|
|
— |
|
|
16.7 |
|
|
— |
|
|
|
26.5 |
Inventories: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Construction in progress and finished homes |
|
|
9,134.3 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
(132.9 |
) |
|
|
9,001.4 |
Residential land and lots |
|
|
9,021.5 |
|
|
— |
|
|
|
1,790.3 |
|
|
— |
|
|
(131.2 |
) |
|
|
10,680.6 |
Rental properties |
|
|
— |
|
|
2,708.4 |
|
|
|
— |
|
|
— |
|
|
(17.1 |
) |
|
|
2,691.3 |
|
|
|
18,155.8 |
|
|
2,708.4 |
|
|
|
1,790.3 |
|
|
— |
|
|
(281.2 |
) |
|
|
22,373.3 |
Mortgage loans held for sale |
|
|
— |
|
|
— |
|
|
|
— |
|
|
2,519.9 |
|
|
— |
|
|
|
2,519.9 |
Deferred income taxes, net |
|
|
229.8 |
|
|
(19.9 |
) |
|
|
— |
|
|
— |
|
|
(22.7 |
) |
|
|
187.2 |
Property and equipment, net |
|
|
415.0 |
|
|
2.4 |
|
|
|
5.9 |
|
|
4.1 |
|
|
18.0 |
|
|
|
445.4 |
Other assets |
|
|
2,838.5 |
|
|
29.8 |
|
|
|
58.5 |
|
|
250.3 |
|
|
(184.1 |
) |
|
|
2,993.0 |
Goodwill |
|
|
134.3 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
29.2 |
|
|
|
163.5 |
|
|
$ |
24,700.1 |
|
$ |
2,860.1 |
|
|
$ |
2,470.7 |
|
$ |
2,980.1 |
|
$ |
(428.6 |
) |
|
$ |
32,582.4 |
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Accounts payable |
|
$ |
1,033.7 |
|
$ |
698.6 |
|
|
$ |
68.4 |
|
$ |
0.1 |
|
$ |
(554.6 |
) |
|
$ |
1,246.2 |
Accrued expenses and other liabilities |
|
|
2,585.5 |
|
|
43.2 |
|
|
|
337.4 |
|
|
280.4 |
|
|
(142.7 |
) |
|
|
3,103.8 |
Notes payable |
|
|
2,329.9 |
|
|
400.0 |
|
|
|
695.0 |
|
|
1,669.6 |
|
|
— |
|
|
|
5,094.5 |
|
|
$ |
5,949.1 |
|
$ |
1,141.8 |
|
|
$ |
1,100.8 |
|
$ |
1,950.1 |
|
$ |
(697.3 |
) |
|
$ |
9,444.5 |
_________________ |
||
(1) |
Amounts include the balances of the Company's other businesses, the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments. |
|
D.R. HORTON, INC. AND SUBSIDIARIES |
||||||||||||||||||||||||
SEGMENT INFORMATION |
||||||||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||||||||
|
|
Three Months Ended December 31, 2023 |
||||||||||||||||||||||
|
|
Homebuilding |
|
Rental |
|
Forestar |
|
Financial
|
|
Eliminations
|
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales |
|
$ |
7,276.4 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,276.4 |
|
Land/lot sales and other |
|
|
20.3 |
|
|
|
— |
|
|
|
305.9 |
|
|
|
— |
|
|
|
(264.5 |
) |
|
|
61.7 |
|
Rental property sales |
|
|
— |
|
|
|
195.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
195.3 |
|
Financial services |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
192.6 |
|
|
|
— |
|
|
|
192.6 |
|
|
|
|
7,296.7 |
|
|
|
195.3 |
|
|
|
305.9 |
|
|
|
192.6 |
|
|
|
(264.5 |
) |
|
|
7,726.0 |
|
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales (2) |
|
|
5,608.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(54.2 |
) |
|
|
5,553.8 |
|
Land/lot sales and other |
|
|
13.2 |
|
|
|
— |
|
|
|
232.8 |
|
|
|
— |
|
|
|
(222.6 |
) |
|
|
23.4 |
|
Rental property sales |
|
|
— |
|
|
|
141.3 |
|
|
|
— |
|
|
|
— |
|
|
|
(4.8 |
) |
|
|
136.5 |
|
Inventory and land option charges |
|
|
5.5 |
|
|
|
0.4 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
6.1 |
|
|
|
|
5,626.7 |
|
|
|
141.7 |
|
|
|
233.0 |
|
|
|
— |
|
|
|
(281.6 |
) |
|
|
5,719.8 |
|
Selling, general and administrative expense |
|
|
603.4 |
|
|
|
47.4 |
|
|
|
28.0 |
|
|
|
151.5 |
|
|
|
4.7 |
|
|
|
835.0 |
|
Other (income) expense |
|
|
(29.5 |
) |
|
|
(25.1 |
) |
|
|
(6.3 |
) |
|
|
(24.9 |
) |
|
|
9.5 |
|
|
|
(76.3 |
) |
Income before income taxes |
|
$ |
1,096.1 |
|
|
$ |
31.3 |
|
|
$ |
51.2 |
|
|
$ |
66.0 |
|
|
$ |
2.9 |
|
|
$ |
1,247.5 |
|
Summary Cash Flow Information |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash provided by (used in) operating activities |
|
$ |
31.2 |
|
|
$ |
(516.2 |
) |
|
$ |
(156.7 |
) |
|
$ |
464.7 |
|
|
$ |
23.6 |
|
|
$ |
(153.4 |
) |
|
|
Three Months Ended December 31, 2022 |
||||||||||||||||||||||
|
|
Homebuilding |
|
Rental |
|
Forestar |
|
Financial
|
|
Eliminations
|
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales |
|
$ |
6,709.2 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6,709.2 |
|
Land/lot sales and other |
|
|
34.8 |
|
|
|
— |
|
|
|
216.7 |
|
|
|
— |
|
|
|
(167.4 |
) |
|
|
84.1 |
|
Rental property sales |
|
|
— |
|
|
|
327.5 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
327.5 |
|
Financial services |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
137.0 |
|
|
|
— |
|
|
|
137.0 |
|
|
|
|
6,744.0 |
|
|
|
327.5 |
|
|
|
216.7 |
|
|
|
137.0 |
|
|
|
(167.4 |
) |
|
|
7,257.8 |
|
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales (2) |
|
|
5,106.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(49.0 |
) |
|
|
5,057.7 |
|
Land/lot sales and other |
|
|
4.9 |
|
|
|
— |
|
|
|
166.8 |
|
|
|
— |
|
|
|
(147.7 |
) |
|
|
24.0 |
|
Rental property sales |
|
|
— |
|
|
|
183.8 |
|
|
|
— |
|
|
|
— |
|
|
|
(1.7 |
) |
|
|
182.1 |
|
Inventory and land option charges |
|
|
24.2 |
|
|
|
0.9 |
|
|
|
2.4 |
|
|
|
— |
|
|
|
— |
|
|
|
27.5 |
|
|
|
|
5,135.8 |
|
|
|
184.7 |
|
|
|
169.2 |
|
|
|
— |
|
|
|
(198.4 |
) |
|
|
5,291.3 |
|
Selling, general and administrative expense |
|
|
527.1 |
|
|
|
47.5 |
|
|
|
22.9 |
|
|
|
134.1 |
|
|
|
5.4 |
|
|
|
737.0 |
|
Other (income) expense |
|
|
(13.3 |
) |
|
|
(15.0 |
) |
|
|
(3.3 |
) |
|
|
(15.3 |
) |
|
|
9.2 |
|
|
|
(37.7 |
) |
Income before income taxes |
|
$ |
1,094.4 |
|
|
$ |
110.3 |
|
|
$ |
27.9 |
|
|
$ |
18.2 |
|
|
$ |
16.4 |
|
|
$ |
1,267.2 |
|
Summary Cash Flow Information |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash provided by (used in) operating activities |
|
$ |
313.9 |
|
|
$ |
49.4 |
|
|
$ |
(49.8 |
) |
|
$ |
493.1 |
|
|
$ |
22.5 |
|
|
$ |
829.1 |
|
_____________________ |
||
(1) |
Amounts include the results of the Company's other businesses and the elimination of intercompany transactions. |
|
(2) |
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. |
|
D.R. HORTON, INC. AND SUBSIDIARIES |
||||||||||
SALES, CLOSINGS AND BACKLOG |
||||||||||
HOMEBUILDING SEGMENT |
||||||||||
(Dollars in millions) |
||||||||||
NET SALES ORDERS |
||||||||||
|
|
|
|
|
|
|
|
|
||
|
|
Three Months Ended December 31, |
||||||||
|
|
2023 |
|
2022 |
||||||
|
|
Homes |
|
Value |
|
Homes |
|
Value |
||
Northwest |
|
1,179 |
|
$ |
595.8 |
|
904 |
|
$ |
459.8 |
Southwest |
|
2,163 |
|
|
1,034.9 |
|
1,254 |
|
|
580.5 |
South Central |
|
4,832 |
|
|
1,554.7 |
|
3,806 |
|
|
1,174.1 |
Southeast |
|
4,801 |
|
|
1,705.1 |
|
3,917 |
|
|
1,392.5 |
East |
|
3,301 |
|
|
1,175.2 |
|
2,313 |
|
|
845.6 |
North |
|
1,793 |
|
|
723.8 |
|
1,188 |
|
|
470.9 |
|
|
18,069 |
|
$ |
6,789.5 |
|
13,382 |
|
$ |
4,923.4 |
HOMES CLOSED |
||||||||||
|
|
|
|
|
|
|
|
|
||
|
|
Three Months Ended December 31, |
||||||||
|
|
2023 |
|
2022 |
||||||
|
|
Homes |
|
Value |
|
Homes |
|
Value |
||
Northwest |
|
1,134 |
|
$ |
573.7 |
|
982 |
|
$ |
520.1 |
Southwest |
|
2,218 |
|
|
1,051.3 |
|
1,707 |
|
|
802.7 |
South Central |
|
5,121 |
|
|
1,664.0 |
|
4,837 |
|
|
1,636.2 |
Southeast |
|
5,494 |
|
|
1,990.3 |
|
5,287 |
|
|
1,994.4 |
East |
|
3,581 |
|
|
1,267.9 |
|
3,015 |
|
|
1,143.4 |
North |
|
1,792 |
|
|
729.2 |
|
1,512 |
|
|
612.4 |
|
|
19,340 |
|
$ |
7,276.4 |
|
17,340 |
|
$ |
6,709.2 |
SALES ORDER BACKLOG |
||||||||||
|
|
|
|
|
|
|
|
|
||
|
|
As of December 31, |
||||||||
|
|
2023 |
|
2022 |
||||||
|
|
Homes |
|
Value |
|
Homes |
|
Value |
||
Northwest |
|
592 |
|
$ |
300.1 |
|
646 |
|
$ |
366.8 |
Southwest |
|
1,352 |
|
|
664.9 |
|
1,307 |
|
|
682.8 |
South Central |
|
3,338 |
|
|
1,117.2 |
|
4,764 |
|
|
1,620.2 |
Southeast |
|
4,123 |
|
|
1,588.5 |
|
5,613 |
|
|
2,185.4 |
East |
|
3,101 |
|
|
1,159.7 |
|
2,384 |
|
|
917.0 |
North |
|
1,459 |
|
|
612.4 |
|
1,045 |
|
|
447.6 |
|
|
13,965 |
|
$ |
5,442.8 |
|
15,759 |
|
$ |
6,219.8 |
D.R. HORTON, INC. AND SUBSIDIARIES |
|||||||||||
LAND AND LOT POSITION AND HOMES IN INVENTORY |
|||||||||||
HOMEBUILDING SEGMENT |
|||||||||||
LAND AND LOT POSITION |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
September 30, 2023 |
||||||||
|
Land/Lots
|
|
Lots Controlled
|
|
Total
|
|
Land/Lots
|
|
Lots Controlled
|
|
Total
|
Northwest |
13,400 |
|
21,900 |
|
35,300 |
|
14,100 |
|
20,300 |
|
34,400 |
Southwest |
22,800 |
|
29,000 |
|
51,800 |
|
22,600 |
|
30,500 |
|
53,100 |
South Central |
37,100 |
|
95,600 |
|
132,700 |
|
36,700 |
|
69,500 |
|
106,200 |
Southeast |
26,700 |
|
135,900 |
|
162,600 |
|
24,700 |
|
132,900 |
|
157,600 |
East |
29,700 |
|
123,600 |
|
153,300 |
|
27,700 |
|
118,400 |
|
146,100 |
North |
15,300 |
|
56,200 |
|
71,500 |
|
15,300 |
|
55,700 |
|
71,000 |
|
145,000 |
|
462,200 |
|
607,200 |
|
141,100 |
|
427,300 |
|
568,400 |
|
24 % |
|
76 % |
|
100 % |
|
25 % |
|
75 % |
|
100 % |
_____________ |
||
(1) |
Lots controlled at December 31, 2023 included approximately 33,700 lots owned or controlled by Forestar, 16,200 of which our homebuilding divisions had under contract to purchase and 17,500 of which our homebuilding divisions had a right of first offer to purchase. Lots controlled at September 30, 2023 included approximately 31,400 lots owned or controlled by Forestar, 14,400 of which our homebuilding divisions had under contract to purchase and 17,000 of which our homebuilding divisions had a right of first offer to purchase. |
|
HOMES IN INVENTORY (1) |
||||
|
|
|
|
|
|
|
December 31,
|
|
September 30,
|
Northwest |
|
3,100 |
|
2,800 |
Southwest |
|
4,700 |
|
4,700 |
South Central |
|
10,500 |
|
10,800 |
Southeast |
|
11,700 |
|
12,100 |
East |
|
7,600 |
|
7,100 |
North |
|
5,000 |
|
4,500 |
|
|
42,600 |
|
42,000 |
_____________ |
||
(1) |
Homes in inventory exclude model homes and homes related to our rental operations. |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240123629399/en/
D.R. Horton, Inc.
Jessica Hansen, 817-390-8200
Senior Vice President - Communications
InvestorRelations@drhorton.com
Source: D.R. Horton, Inc.
FAQ
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