D.R. Horton, Inc., America’s Builder, Reports Fourth Quarter and Fiscal 2021 Earnings and Increases Quarterly Dividend To $0.225 Per Share
D.R. Horton reported strong fiscal 2021 results, with net income per share increasing 78% to $11.41 and revenues rising 37% to $27.8 billion. In Q4, net income per diluted share rose 65% to $3.70, and revenues grew 27% to $8.1 billion. Homes closed increased by 25% to 81,965 for the year, indicating robust market demand. Despite a 33% drop in net sales orders in Q4, the company maintained a 17% cancellation rate. D.R. Horton aims for fiscal 2022 revenues between $32.5 billion and $33.5 billion, planning to close 90,000 to 92,000 homes.
- Net income per diluted share increased 78% to $11.41.
- Consolidated revenues grew 37% to $27.8 billion.
- Net income attributable to D.R. Horton rose 76% to $4.2 billion.
- Homes closed increased 25% to 81,965, capturing 10% market share.
- Cash flow from homebuilding operations totaled $1.2 billion.
- Book value per share rose 29% to $41.81.
- Net sales orders decreased 33% to 15,949 homes in Q4.
- Sales order backlog decreased 2% to 26,221 homes.
Fiscal 2021 Fourth Quarter Highlights - comparisons to the prior year quarter
-
Net income per diluted share increased
65% to$3.70 -
Net income attributable to
D.R. Horton increased62% to$1.3 billion -
Consolidated revenues increased
27% to$8.1 billion -
Consolidated pre-tax income increased
63% to$1.7 billion -
Consolidated pre-tax profit margin improved 480 basis points to
21.3% -
Repurchased 2.3 million shares of common stock for
$212.6 million
Fiscal 2021 Highlights - comparisons to the prior year
-
Net income per diluted share increased
78% to$11.41 -
Net income attributable to
D.R. Horton increased76% to$4.2 billion -
Consolidated revenues increased
37% to$27.8 billion -
Consolidated pre-tax income increased
80% to$5.4 billion -
Consolidated pre-tax profit margin improved 460 basis points to
19.3% -
Homes closed increased
25% to 81,965 homes and35% in value to$26.5 billion -
Net sales orders increased
4% to 81,378 homes and18% in value to$27.7 billion -
Cash provided by homebuilding operations totaled
$1.2 billion -
Book value per common share increased
29% to$41.81 -
Repurchased 10.4 million shares of common stock for
$874.0 million -
Return on equity was
31.6% and homebuilding return on inventory was37.9%
For the fiscal year ended
Net sales orders for the fourth quarter ended
At
The Company's return on equity (ROE) was
The Company ended the year with
"Over the last five years, we have grown our consolidated revenues by
“Housing market conditions remain very robust, with homebuyer demand exceeding our current capacity to deliver homes across most of our markets. We have continued to experience significant disruptions in our supply chain, including shortages and delivery delays in certain building materials along with tightness in the labor market. Consequently, in the fourth quarter, we continued intentionally restricting our home sales pace by selling homes later in the construction cycle to align with our production levels and better ensure the certainty of home close dates for our homebuyers. Currently, we are still restricting the pace of our sales orders during our first fiscal quarter, but to a lesser extent than during our fourth quarter.
"As we navigate the current supply chain challenges, we are focused on increasing our production capacity and infrastructure to support a higher level of home starts. After starting construction on 22,400 homes during the fourth quarter, our homes in inventory at
“We remain focused on maximizing returns and 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,
-
Consolidated revenues of
$32.5 billion $33.5 billion - Homes closed between 90,000 homes and 92,000 homes
-
Income tax rate of approximately
24%
The Company plans to also provide guidance for its first quarter of fiscal 2022 on its conference call today.
Forestar
For the fourth quarter ended
Forestar’s pre-tax income in the fourth quarter of fiscal 2021 increased
Financial Services
For the fourth quarter ended
Rental Operations
The Company's rental operations generated
At
During the fourth quarter of fiscal 2021, the Company sold one single-family rental property for
Reclassifications
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 presentation was effected on a prospective basis in the Company’s consolidated financial statements beginning in the third quarter of fiscal 2021.
Additionally, during the fourth quarter of fiscal 2021, the Company reassessed its operating segments and reportable segments. As a result, the Company combined its single-family rental operations and its multi-family rental operations into a new rental reporting segment. The Company’s single-family rental operations had previously been reported in its homebuilding segment and its multi-family operations had previously been reported in its other segment. Additionally, the Company realigned the aggregation of its homebuilding operating segments into six new reportable segments to better allocate its homebuilding operating segments across geographic reporting regions. Segment information reported in prior year periods has been reclassified to conform to the 2021 presentation.
Based on the new aggregation, the six reporting segments and the states in which the Company has homebuilding operations are as follows:
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Northwest: |
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Southwest: |
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South Central: |
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Southeast: |
|
|
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East: |
|
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North: |
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Dividends
During the fourth quarter of fiscal 2021, the Company paid cash dividends of
Share Repurchases
The Company repurchased 2.3 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; significant supply chain disruptions 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
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
|||||||||
|
|
||||||||
|
2021 |
|
2020 |
||||||
|
(In millions) |
||||||||
ASSETS |
|
|
|
||||||
Cash and cash equivalents |
$ |
3,210.4 |
|
|
|
$ |
3,018.5 |
|
|
Restricted cash |
26.8 |
|
|
|
21.6 |
|
|
||
Total cash, cash equivalents and restricted cash |
3,237.2 |
|
|
|
3,040.1 |
|
|
||
Inventories: |
|
|
|
||||||
Construction in progress and finished homes |
7,739.2 |
|
|
|
5,984.1 |
|
|
||
Residential land and lots — developed, under development, held for development and held for sale |
7,918.1 |
|
|
|
6,253.3 |
|
|
||
Rental properties |
821.8 |
|
|
|
— |
|
|
||
Total inventory |
16,479.1 |
|
|
|
12,237.4 |
|
|
||
Mortgage loans held for sale |
2,027.3 |
|
|
|
1,529.0 |
|
|
||
Deferred income taxes, net of valuation allowance of |
155.3 |
|
|
|
144.9 |
|
|
||
Property and equipment, net |
392.9 |
|
|
|
683.7 |
|
|
||
Other assets |
1,560.6 |
|
|
|
1,113.7 |
|
|
||
|
163.5 |
|
|
|
163.5 |
|
|
||
Total assets |
$ |
24,015.9 |
|
|
|
$ |
18,912.3 |
|
|
LIABILITIES |
|
|
|
||||||
Accounts payable |
$ |
1,177.0 |
|
|
|
$ |
900.5 |
|
|
Accrued expenses and other liabilities |
2,210.3 |
|
|
|
1,607.0 |
|
|
||
Notes payable |
5,412.4 |
|
|
|
4,283.3 |
|
|
||
Total liabilities |
8,799.7 |
|
|
|
6,790.8 |
|
|
||
EQUITY |
|
|
|
||||||
Common stock, |
4.0 |
|
|
|
3.9 |
|
|
||
Additional paid-in capital |
3,274.8 |
|
|
|
3,240.9 |
|
|
||
Retained earnings |
13,644.3 |
|
|
|
9,757.8 |
|
|
||
|
(2,036.6 |
) |
|
|
(1,162.6 |
) |
|
||
Stockholders’ equity |
14,886.5 |
|
|
|
11,840.0 |
|
|
||
Noncontrolling interests |
329.7 |
|
|
|
281.5 |
|
|
||
Total equity |
15,216.2 |
|
|
|
12,121.5 |
|
|
||
Total liabilities and equity |
$ |
24,015.9 |
|
|
|
$ |
18,912.3 |
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||||||
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||||||
|
(In millions, except per share data) |
||||||||||||||||||
Revenues |
$ |
8,109.3 |
|
|
|
$ |
6,400.4 |
|
|
|
$ |
27,774.2 |
|
|
|
$ |
20,311.1 |
|
|
Cost of sales |
5,703.2 |
|
|
|
4,753.6 |
|
|
|
19,899.2 |
|
|
|
15,373.2 |
|
|
||||
Selling, general and administrative expense |
693.0 |
|
|
|
597.7 |
|
|
|
2,556.2 |
|
|
|
2,047.8 |
|
|
||||
Gain on sale of assets |
— |
|
|
|
— |
|
|
|
(14.0 |
) |
|
|
(59.5 |
) |
|
||||
Loss on extinguishment of debt |
— |
|
|
|
— |
|
|
|
18.1 |
|
|
|
— |
|
|
||||
Other (income) expense |
(13.5 |
) |
|
|
(7.0 |
) |
|
|
(41.6 |
) |
|
|
(33.4 |
) |
|
||||
Income before income taxes |
1,726.6 |
|
|
|
1,056.1 |
|
|
|
5,356.3 |
|
|
|
2,983.0 |
|
|
||||
Income tax expense |
381.0 |
|
|
|
224.9 |
|
|
|
1,165.1 |
|
|
|
602.5 |
|
|
||||
Net income |
1,345.6 |
|
|
|
831.2 |
|
|
|
4,191.2 |
|
|
|
2,380.5 |
|
|
||||
Net income attributable to noncontrolling interests |
6.6 |
|
|
|
2.2 |
|
|
|
15.4 |
|
|
|
6.8 |
|
|
||||
Net income attributable to |
$ |
1,339.0 |
|
|
|
$ |
829.0 |
|
|
|
$ |
4,175.8 |
|
|
|
$ |
2,373.7 |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic net income per common share attributable to |
$ |
3.74 |
|
|
|
$ |
2.28 |
|
|
|
$ |
11.56 |
|
|
|
$ |
6.49 |
|
|
Weighted average number of common shares |
357.9 |
|
|
|
364.1 |
|
|
|
361.1 |
|
|
|
365.5 |
|
|
||||
|
|
|
|
|
|
|
|
||||||||||||
Diluted net income per common share attributable to |
$ |
3.70 |
|
|
|
$ |
2.24 |
|
|
|
$ |
11.41 |
|
|
|
$ |
6.41 |
|
|
Adjusted weighted average number of common shares |
362.1 |
|
|
|
369.5 |
|
|
|
365.8 |
|
|
|
370.2 |
|
|
||||
|
|
|
|
|
|
|
|
||||||||||||
Other Consolidated Financial Data: |
|
|
|
|
|
|
|
||||||||||||
Interest charged to cost of sales |
$ |
39.4 |
|
|
|
$ |
37.9 |
|
|
|
$ |
142.2 |
|
|
|
$ |
125.7 |
|
|
Depreciation and amortization |
$ |
17.2 |
|
|
|
$ |
23.0 |
|
|
|
$ |
73.9 |
|
|
|
$ |
80.4 |
|
|
Interest incurred |
$ |
36.2 |
|
|
|
$ |
39.9 |
|
|
|
$ |
152.2 |
|
|
|
$ |
153.3 |
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
|||||||||
|
Year Ended |
||||||||
|
2021 |
|
2020 |
||||||
|
(In millions) |
||||||||
OPERATING ACTIVITIES |
|
|
|
||||||
Net income |
$ |
4,191.2 |
|
|
|
$ |
2,380.5 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||||
Depreciation and amortization |
73.9 |
|
|
|
80.4 |
|
|
||
Amortization of discounts and fees |
8.2 |
|
|
|
10.2 |
|
|
||
Stock-based compensation expense |
91.4 |
|
|
|
77.8 |
|
|
||
Equity in earnings of unconsolidated entities |
(1.0 |
) |
|
|
(0.7 |
) |
|
||
Deferred income taxes |
(10.0 |
) |
|
|
14.1 |
|
|
||
Inventory and land option charges |
28.6 |
|
|
|
23.8 |
|
|
||
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 |
(1,734.9 |
) |
|
|
(739.1 |
) |
|
||
Increase in residential land and lots – developed, under development, held for development and held for sale |
(1,720.6 |
) |
|
|
(324.4 |
) |
|
||
Increase in rental properties |
(303.6 |
) |
|
|
— |
|
|
||
Increase in other assets |
(439.7 |
) |
|
|
(150.7 |
) |
|
||
Increase in mortgage loans held for sale |
(498.3 |
) |
|
|
(457.0 |
) |
|
||
Increase in accounts payable, accrued expenses and other liabilities |
845.1 |
|
|
|
566.2 |
|
|
||
Net cash provided by operating activities |
534.4 |
|
|
|
1,421.6 |
|
|
||
INVESTING ACTIVITIES |
|
|
|
||||||
Expenditures for property and equipment |
(93.5 |
) |
|
|
(96.5 |
) |
|
||
Proceeds from sale of assets |
37.6 |
|
|
|
129.8 |
|
|
||
Expenditures related to rental properties |
(173.9 |
) |
|
|
(190.3 |
) |
|
||
Payments related to business acquisitions, net of cash acquired |
(24.5 |
) |
|
|
(9.7 |
) |
|
||
Other investing activities. |
2.1 |
|
|
|
0.6 |
|
|
||
Net cash used in investing activities |
(252.2 |
) |
|
|
(166.1 |
) |
|
||
FINANCING ACTIVITIES |
|
|
|
||||||
Proceeds from notes payable |
1,541.6 |
|
|
|
2,346.1 |
|
|
||
Repayment of notes payable |
(826.3 |
) |
|
|
(1,682.9 |
) |
|
||
Advances on mortgage repurchase facility, net |
362.0 |
|
|
|
243.7 |
|
|
||
Proceeds from stock associated with certain employee benefit plans |
22.7 |
|
|
|
23.4 |
|
|
||
Cash paid for shares withheld for taxes |
(78.5 |
) |
|
|
(38.2 |
) |
|
||
Cash dividends paid |
(289.3 |
) |
|
|
(256.0 |
) |
|
||
Repurchases of common stock |
(848.4 |
) |
|
|
(360.4 |
) |
|
||
Distributions to noncontrolling interests, net |
(0.1 |
) |
|
|
(0.7 |
) |
|
||
Net proceeds from issuance of Forestar common stock |
33.5 |
|
|
|
— |
|
|
||
Other financing activities |
(2.3 |
) |
|
|
(4.4 |
) |
|
||
Net cash (used in) provided by financing activities |
(85.1 |
) |
|
|
270.6 |
|
|
||
Net increase in cash, cash equivalents and restricted cash |
197.1 |
|
|
|
1,526.1 |
|
|
||
Cash, cash equivalents and restricted cash at beginning of year |
3,040.1 |
|
|
|
1,514.0 |
|
|
||
Cash, cash equivalents and restricted cash at end of year |
$ |
3,237.2 |
|
|
|
$ |
3,040.1 |
|
|
SEGMENT INFORMATION (UNAUDITED) |
|||||||||||||||||||||||
|
|
||||||||||||||||||||||
|
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 |
|
|
|
||||||||||||||||||||||
|
Homebuilding |
|
Forestar (1) |
|
Financial Services |
|
Rental |
|
Eliminations and Other (2) |
|
Consolidated |
||||||||||||
|
(In millions) |
||||||||||||||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents |
$ |
2,551.0 |
|
|
$ |
394.3 |
|
|
$ |
55.6 |
|
|
$ |
12.7 |
|
|
$ |
4.9 |
|
|
$ |
3,018.5 |
|
Restricted cash |
9.4 |
|
|
— |
|
|
11.9 |
|
|
0.3 |
|
|
— |
|
|
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 |
|
||||||
Rental properties |
— |
|
|
— |
|
|
— |
|
|
316.0 |
|
|
(316.0 |
) |
|
— |
|
||||||
|
11,015.0 |
|
|
1,309.7 |
|
|
— |
|
|
316.0 |
|
|
(403.3 |
) |
|
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 |
286.7 |
|
|
1.1 |
|
|
3.9 |
|
|
— |
|
|
392.0 |
|
|
683.7 |
|
||||||
Other assets |
996.3 |
|
|
34.8 |
|
|
125.8 |
|
|
4.5 |
|
|
(47.7 |
) |
|
1,113.7 |
|
||||||
|
134.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
29.2 |
|
|
163.5 |
|
||||||
|
$ |
15,135.0 |
|
|
$ |
1,739.9 |
|
|
$ |
1,726.2 |
|
|
$ |
333.5 |
|
|
$ |
(22.3 |
) |
|
$ |
18,912.3 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable |
$ |
858.1 |
|
|
$ |
29.2 |
|
|
$ |
— |
|
|
$ |
13.2 |
|
|
$ |
— |
|
|
$ |
900.5 |
|
Accrued expenses and other liabilities |
1,437.5 |
|
|
197.8 |
|
|
86.8 |
|
|
6.4 |
|
|
(121.5 |
) |
|
1,607.0 |
|
||||||
Notes payable |
2,514.4 |
|
|
641.1 |
|
|
1,132.6 |
|
|
— |
|
|
(4.8 |
) |
|
4,283.3 |
|
||||||
|
$ |
4,810.0 |
|
|
$ |
868.1 |
|
|
$ |
1,219.4 |
|
|
$ |
19.6 |
|
|
$ |
(126.3 |
) |
|
$ |
6,790.8 |
|
_________________________ |
|
(1) |
Amounts are presented on Forestar’s historical cost basis. |
(2) |
Amounts include the balances of the Company's other businesses, reconciling amounts between segment and consolidated balances, the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. |
SEGMENT INFORMATION (UNAUDITED) |
||||||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||||||
|
Homebuilding |
|
Forestar (1) |
|
Financial Services |
|
Rental |
|
Eliminations and Other (2) |
|
Consolidated |
|||||||||||||
|
(In millions) |
|||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Home sales |
$ |
7,593.4 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,593.4 |
|
|
Land/lot sales and other |
34.5 |
|
|
418.7 |
|
|
— |
|
|
— |
|
|
(372.7 |
) |
|
80.5 |
|
|||||||
Rental property sales |
— |
|
|
— |
|
|
— |
|
|
212.9 |
|
|
— |
|
|
212.9 |
|
|||||||
Financial services |
— |
|
|
— |
|
|
222.5 |
|
|
— |
|
|
— |
|
|
222.5 |
|
|||||||
|
7,627.9 |
|
|
418.7 |
|
|
222.5 |
|
|
212.9 |
|
|
(372.7 |
) |
|
8,109.3 |
|
|||||||
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Home sales (3) |
5,552.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
(36.9 |
) |
|
5,515.3 |
|
|||||||
Land/lot sales and other |
28.4 |
|
|
341.3 |
|
|
— |
|
|
— |
|
|
(322.4 |
) |
|
47.3 |
|
|||||||
Rental property sales |
— |
|
|
— |
|
|
— |
|
|
130.9 |
|
|
(0.6 |
) |
|
130.3 |
|
|||||||
Inventory and land option charges |
8.8 |
|
|
1.5 |
|
|
— |
|
|
— |
|
|
— |
|
|
10.3 |
|
|||||||
|
5,589.4 |
|
|
342.8 |
|
|
— |
|
|
130.9 |
|
|
(359.9 |
) |
|
5,703.2 |
|
|||||||
Selling, general and administrative expense |
527.8 |
|
|
19.7 |
|
|
127.9 |
|
|
15.0 |
|
|
2.6 |
|
|
693.0 |
|
|||||||
Gain on sale of assets |
— |
|
|
(2.5 |
) |
|
— |
|
|
— |
|
|
2.5 |
|
|
— |
|
|||||||
Other (income) expense |
(2.9 |
) |
|
(0.1 |
) |
|
(7.9 |
) |
|
(7.3 |
) |
|
4.7 |
|
|
(13.5 |
) |
|||||||
Income before income taxes |
$ |
1,513.6 |
|
|
$ |
58.8 |
|
|
$ |
102.5 |
|
|
$ |
74.3 |
|
|
$ |
(22.6 |
) |
|
$ |
1,726.6 |
|
|
|
Year Ended |
||||||||||||||||||||||||
|
Homebuilding |
Forestar (1) |
Financial Services |
Rental |
Eliminations and Other (2) |
Consolidated |
|||||||||||||||||||
|
(In millions) |
||||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|||||||||||||||||||
Home sales |
$ |
26,502.6 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
26,502.6 |
|
|||||||
Land/lot sales and other |
75.0 |
|
1,325.8 |
|
— |
|
— |
|
(1,188.8 |
) |
212.0 |
|
|||||||||||||
Rental property sales |
— |
|
— |
|
— |
|
267.8 |
|
(31.8 |
) |
236.0 |
|
|||||||||||||
Financial services |
— |
|
— |
|
823.6 |
|
— |
|
— |
|
823.6 |
|
|||||||||||||
|
26,577.6 |
|
1,325.8 |
|
823.6 |
|
267.8 |
|
(1,220.6 |
) |
27,774.2 |
|
|||||||||||||
Cost of sales |
|
|
|
|
|
|
|||||||||||||||||||
Home sales (3) |
19,748.4 |
|
— |
|
— |
|
— |
|
(140.1 |
) |
19,608.3 |
|
|||||||||||||
Land/lot sales and other |
56.2 |
|
1,093.6 |
|
— |
|
— |
|
(1,030.5 |
) |
119.3 |
|
|||||||||||||
Rental property sales |
— |
|
— |
|
— |
|
160.8 |
|
(17.8 |
) |
143.0 |
|
|||||||||||||
Inventory and land option charges |
24.9 |
|
3.0 |
|
— |
|
0.7 |
|
— |
|
28.6 |
|
|||||||||||||
|
19,829.5 |
|
1,096.6 |
|
— |
|
161.5 |
|
(1,188.4 |
) |
19,899.2 |
|
|||||||||||||
Selling, general and administrative expense |
1,945.6 |
|
68.4 |
|
488.3 |
|
44.6 |
|
9.3 |
|
2,556.2 |
|
|||||||||||||
Gain on sale of assets |
— |
|
(2.5 |
) |
— |
|
— |
|
(11.5 |
) |
(14.0 |
) |
|||||||||||||
Loss on extinguishment of debt |
— |
|
18.1 |
|
— |
|
— |
|
— |
|
18.1 |
|
|||||||||||||
Other (income) expense |
(10.3 |
) |
(1.4 |
) |
(29.3 |
) |
(24.8 |
) |
24.2 |
|
(41.6 |
) |
|||||||||||||
Income before income taxes |
$ |
4,812.8 |
|
$ |
146.6 |
|
$ |
364.6 |
|
$ |
86.5 |
|
$ |
(54.2 |
) |
$ |
5,356.3 |
|
|||||||
Summary Cash Flow Information |
|
|
|
|
|
|
|||||||||||||||||||
Cash provided by (used in) operating activities |
$ |
1,239.8 |
|
$ |
(303.1 |
) |
$ |
(195.8 |
) |
$ |
(410.0 |
) |
$ |
203.5 |
|
$ |
534.4 |
|
|||||||
_________________________ |
|
(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, 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 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 |
$ |
6,126.6 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6,126.6 |
|
|
Land/lot sales and other |
31.8 |
|
|
347.6 |
|
|
— |
|
|
— |
|
|
(326.5 |
) |
|
52.9 |
|
|
||||||
Rental property sales |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
||||||
Financial services |
— |
|
|
— |
|
|
220.9 |
|
|
— |
|
|
— |
|
|
220.9 |
|
|
||||||
|
6,158.4 |
|
|
347.6 |
|
|
220.9 |
|
|
— |
|
|
(326.5 |
) |
|
6,400.4 |
|
|
||||||
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Home sales (3) |
4,736.6 |
|
|
— |
|
|
— |
|
|
— |
|
|
(24.2 |
) |
|
4,712.4 |
|
|
||||||
Land/lot sales and other |
23.4 |
|
|
303.1 |
|
|
— |
|
|
— |
|
|
(291.3 |
) |
|
35.2 |
|
|
||||||
Rental property sales |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
||||||
Inventory and land option charges |
5.7 |
|
|
0.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
6.0 |
|
|
||||||
|
4,765.7 |
|
|
303.4 |
|
|
— |
|
|
— |
|
|
(315.5 |
) |
|
4,753.6 |
|
|
||||||
Selling, general and administrative expense |
466.9 |
|
|
12.9 |
|
|
107.0 |
|
|
9.0 |
|
|
1.9 |
|
|
597.7 |
|
|
||||||
Other (income) expense |
(2.0 |
) |
|
(0.7 |
) |
|
(7.3 |
) |
|
(6.0 |
) |
|
9.0 |
|
|
(7.0 |
) |
|
||||||
Income (loss) before income taxes |
$ |
927.8 |
|
|
$ |
32.0 |
|
|
$ |
121.2 |
|
|
$ |
(3.0 |
) |
|
$ |
(21.9 |
) |
|
$ |
1,056.1 |
|
|
|
Year Ended |
|||||||||||||||||||||||
|
Homebuilding |
|
Forestar (1) |
|
Financial Services |
|
Rental |
|
Eliminations and Other (2) |
|
Consolidated |
|||||||||||||
|
(In millions) |
|||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Home sales |
$ |
19,560.8 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
19,560.8 |
|
|
Land/lot sales and other |
80.7 |
|
|
931.8 |
|
|
— |
|
|
— |
|
|
(847.1 |
) |
|
165.4 |
|
|
||||||
Rental property sales |
— |
|
|
— |
|
|
— |
|
|
128.5 |
|
|
(128.5 |
) |
|
— |
|
|
||||||
Financial services |
— |
|
|
— |
|
|
584.9 |
|
|
— |
|
|
— |
|
|
584.9 |
|
|
||||||
|
19,641.5 |
|
|
931.8 |
|
|
584.9 |
|
|
128.5 |
|
|
(975.6 |
) |
|
20,311.1 |
|
|
||||||
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Home sales (3) |
15,305.8 |
|
|
— |
|
|
— |
|
|
— |
|
|
(58.6 |
) |
|
15,247.2 |
|
|
||||||
Land/lot sales and other |
58.3 |
|
|
812.8 |
|
|
— |
|
|
— |
|
|
(768.9 |
) |
|
102.2 |
|
|
||||||
Rental property sales |
— |
|
|
— |
|
|
— |
|
|
69.0 |
|
|
(69.0 |
) |
|
— |
|
|
||||||
Inventory and land option charges |
22.9 |
|
|
0.9 |
|
|
— |
|
|
— |
|
|
— |
|
|
23.8 |
|
|
||||||
|
15,387.0 |
|
|
813.7 |
|
|
— |
|
|
69.0 |
|
|
(896.5 |
) |
|
15,373.2 |
|
|
||||||
Selling, general and administrative expense |
1,600.7 |
|
|
45.7 |
|
|
364.7 |
|
|
27.8 |
|
|
8.9 |
|
|
2,047.8 |
|
|
||||||
Gain on sale of assets |
— |
|
|
(0.1 |
) |
|
— |
|
|
— |
|
|
(59.4 |
) |
|
(59.5 |
) |
|
||||||
Other (income) expense |
(11.7 |
) |
|
(5.6 |
) |
|
(25.0 |
) |
|
(8.1 |
) |
|
17.0 |
|
|
(33.4 |
) |
|
||||||
Income before income taxes |
$ |
2,665.5 |
|
|
$ |
78.1 |
|
|
$ |
245.2 |
|
|
$ |
39.8 |
|
|
$ |
(45.6 |
) |
|
$ |
2,983.0 |
|
|
Summary Cash Flow Information |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cash provided by (used in) operating activities |
$ |
1,888.4 |
|
|
$ |
(168.5 |
) |
|
$ |
(292.8 |
) |
|
$ |
(71.8 |
) |
|
$ |
66.3 |
|
|
$ |
1,421.6 |
|
|
_________________________ |
|
(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, 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 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. |
SALES, CLOSINGS AND BACKLOG (Dollars in millions) |
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||||||
|
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
||||||||
Northwest |
|
972 |
|
$ |
540.4 |
|
|
1,375 |
|
$ |
630.0 |
|
|
4,530 |
|
$ |
2,320.2 |
|
|
5,308 |
|
$ |
2,342.3 |
|
Southwest |
|
1,823 |
|
911.2 |
|
|
3,414 |
|
1,268.0 |
|
|
9,456 |
|
4,179.3 |
|
|
10,214 |
|
3,838.8 |
|
||||
South Central |
|
4,558 |
|
1,502.7 |
|
|
6,174 |
|
1,614.7 |
|
|
23,631 |
|
6,992.9 |
|
|
21,511 |
|
5,555.2 |
|
||||
Southeast |
|
4,252 |
|
1,484.9 |
|
|
6,462 |
|
1,834.9 |
|
|
24,239 |
|
7,632.1 |
|
|
21,103 |
|
5,781.2 |
|
||||
East |
|
3,213 |
|
1,120.7 |
|
|
4,459 |
|
1,296.1 |
|
|
14,038 |
|
4,496.9 |
|
|
14,480 |
|
4,086.3 |
|
||||
North |
|
1,131 |
|
474.4 |
|
|
1,842 |
|
654.7 |
|
|
5,484 |
|
2,126.8 |
|
|
5,842 |
|
2,002.5 |
|
||||
|
|
15,949 |
|
$ |
6,034.3 |
|
|
23,726 |
|
$ |
7,298.4 |
|
|
81,378 |
|
$ |
27,748.2 |
|
|
78,458 |
|
$ |
23,606.3 |
|
HOMES CLOSED |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||||||
|
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
||||||||
Northwest |
|
1,404 |
|
$ |
757.4 |
|
|
1,458 |
|
$ |
643.4 |
|
|
5,120 |
|
$ |
2,515.6 |
|
|
4,458 |
|
$ |
1,950.8 |
|
Southwest |
|
2,893 |
|
1,265.9 |
|
|
2,648 |
|
1,013.7 |
|
|
9,760 |
|
4,024.7 |
|
|
8,145 |
|
3,173.1 |
|
||||
South Central |
|
6,230 |
|
1,815.3 |
|
|
5,702 |
|
1,474.8 |
|
|
22,236 |
|
6,104.2 |
|
|
17,965 |
|
4,614.6 |
|
||||
Southeast |
|
6,059 |
|
1,930.5 |
|
|
5,339 |
|
1,473.9 |
|
|
23,842 |
|
7,066.1 |
|
|
17,921 |
|
4,863.8 |
|
||||
East |
|
3,616 |
|
1,152.2 |
|
|
3,596 |
|
1,013.8 |
|
|
14,678 |
|
4,453.9 |
|
|
12,266 |
|
3,408.5 |
|
||||
North |
|
1,735 |
|
672.1 |
|
|
1,505 |
|
507.0 |
|
|
6,329 |
|
2,338.1 |
|
|
4,633 |
|
1,550.0 |
|
||||
|
|
21,937 |
|
$ |
7,593.4 |
|
|
20,248 |
|
$ |
6,126.6 |
|
|
81,965 |
|
$ |
26,502.6 |
|
|
65,388 |
|
$ |
19,560.8 |
|
SALES ORDER BACKLOG |
||||||||||||
|
|
As of |
||||||||||
|
|
2021 |
|
2020 |
||||||||
|
|
Homes |
|
Value |
|
Homes |
|
Value |
||||
Northwest |
|
954 |
|
$ |
497.7 |
|
|
1,544 |
|
$ |
693.1 |
|
Southwest |
|
3,438 |
|
1,495.9 |
|
|
3,742 |
|
1,341.3 |
|
||
South Central |
|
8,733 |
|
2,825.4 |
|
|
7,213 |
|
1,904.9 |
|
||
Southeast |
|
7,319 |
|
2,534.7 |
|
|
6,922 |
|
1,968.6 |
|
||
East |
|
4,217 |
|
1,469.4 |
|
|
4,857 |
|
1,426.4 |
|
||
North |
|
1,560 |
|
640.0 |
|
|
2,405 |
|
851.3 |
|
||
|
|
26,221 |
|
$ |
9,463.1 |
|
|
26,683 |
|
$ |
8,185.6 |
|
LAND AND LOT POSITION AND HOMES IN INVENTORY |
|||||||||||||||||
|
|
|
|
||||||||||||||
|
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 |
9,000 |
|
31,400 |
|
40,400 |
|
5,000 |
|
21,300 |
|
26,300 |
||||||
Southwest |
22,800 |
|
34,300 |
|
57,100 |
|
21,300 |
|
19,800 |
|
41,100 |
||||||
South Central |
42,800 |
|
79,000 |
|
121,800 |
|
35,400 |
|
57,400 |
|
92,800 |
||||||
Southeast |
26,700 |
|
125,500 |
|
152,200 |
|
29,100 |
|
84,700 |
|
113,800 |
||||||
East |
17,300 |
|
83,100 |
|
100,400 |
|
12,200 |
|
54,800 |
|
67,000 |
||||||
North |
9,200 |
|
49,200 |
|
58,400 |
|
9,600 |
|
26,300 |
|
35,900 |
||||||
|
127,800 |
|
402,500 |
|
530,300 |
|
112,600 |
|
264,300 |
|
376,900 |
||||||
|
24 |
% |
|
76 |
% |
|
100 |
% |
|
30 |
% |
|
70 |
% |
|
100 |
% |
_________________________ |
|
(1) |
Lots controlled at |
HOMES IN INVENTORY (1) |
||||
|
|
|
||
|
|
2021 |
|
2020 |
Northwest |
|
2,600 |
|
2,500 |
Southwest |
|
5,500 |
|
4,500 |
South Central |
|
14,000 |
|
11,300 |
Southeast |
|
13,600 |
|
10,200 |
East |
|
7,300 |
|
6,400 |
North |
|
4,800 |
|
3,100 |
|
|
47,800 |
|
38,000 |
_________________________ |
|
(1) |
Homes in inventory exclude 1,900 and 600 homes related to our single-family rental operations at |
View source version on businesswire.com: https://www.businesswire.com/news/home/20211109005621/en/
Vice President of Investor Relations
InvestorRelations@drhorton.com
Source:
FAQ
What were D.R. Horton's Q4 2021 financial results including revenue and net income?
What is D.R. Horton’s guidance for fiscal 2022 revenue?
How many homes did D.R. Horton close in fiscal 2021?
What was D.R. Horton's net income per share for fiscal 2021?
What were the sales order trends for D.R. Horton in Q4 2021?
