D.R. Horton, Inc., America’s Builder, Reports Fiscal 2024 Third Quarter Earnings and Declares Quarterly Dividend of $0.30 Per Share
D.R. Horton, Inc. (NYSE:DHI) reported strong fiscal 2024 third quarter results, with earnings per diluted share increasing 5% to $4.10 on net income of $1.4 billion. Consolidated revenues rose 2% to $10.0 billion, while homes closed increased 5% to 24,155. The company's return on equity was 21.5% for the trailing twelve months ended June 30, 2024. D.R. Horton maintained a strong liquidity position with $5.8 billion in total liquidity. The company also declared a quarterly dividend of $0.30 per share and announced a new $4.0 billion share repurchase authorization. Despite elevated inflation and mortgage rates, D.R. Horton remains well-positioned with its affordable product offerings and flexible lot supply.
- Earnings per diluted share increased 5% to $4.10
- Consolidated revenues rose 2% to $10.0 billion
- Homes closed increased 5% to 24,155
- Return on equity was 21.5% for the trailing twelve months
- Strong liquidity position with $5.8 billion in total liquidity
- New $4.0 billion share repurchase authorization approved
- Consolidated pre-tax income increased only 1% to $1.8 billion
- Sales order value remained flat at $8.7 billion compared to the prior year quarter
- Sales order backlog decreased 12% in both homes and value compared to the prior year
Insights
D.R. Horton's earnings report reveals a 5% increase in earnings per share (EPS) to $4.10 for the third quarter of fiscal 2024, reflecting solid performance despite prevailing economic challenges. Net income remained stable at
One notable strength is the company's return on equity (ROE) of 21.5% and a homebuilding return on inventory (ROI) of 29.5%. These metrics are impressive, showcasing efficient capital utilization. In contrast, the 18% cancellation rate reflects ongoing challenges with buyer commitment, possibly due to economic uncertainty and elevated mortgage rates.
D.R. Horton's balance sheet appears robust, with a cash balance of
Share repurchases and dividends further reinforce shareholder value. The authorization of a new
Long-term prospects appear promising due to favorable demographics and limited housing supply. However, short-term headwinds like inflation and mortgage rates could temper immediate gains.
The report showcases D.R. Horton's ability to adapt to market conditions, as evidenced by a 5% increase in homes closed to 24,155 units and a 6% rise in homebuilding revenue to
One concern is the flat net sales order value at
The company's focus on rental operations shows diversification, though income from rentals decreased compared to the previous year. Despite this, the robust portfolio of rental properties positions D.R. Horton well to capitalize on the growing rental market demand.
Forestar's positive performance, with a 16.2% pre-tax profit margin, aligns well with D.R. Horton's strategy of controlling lot supply. This integration enhances operational efficiency and cost management.
Overall, D.R. Horton's strategic initiatives in capital allocation, share repurchases and dividend increases signal a focus on enhancing shareholder value. However, monitoring economic indicators and market conditions will be important for sustaining growth.
Fiscal 2024 Third Quarter Highlights - comparisons to the prior year quarter
-
Earnings per diluted share increased
5% to$4.10 $1.4 billion -
Consolidated pre-tax income increased
1% to$1.8 billion 18.1% -
Consolidated revenues increased
2% to$10.0 billion -
Homes closed increased
5% to 24,155 homes and6% in value to$9.2 billion -
Net sales orders increased
1% to 23,001 homes and were flat in value at$8.7 billion -
Rental operations pre-tax income of
$64.2 million $413.7 million -
Repurchased 3.0 million shares of common stock for
$441.4 million $98.5 million -
New share repurchase authorization of
$4.0 billion
D.R. Horton, Inc. (NYSE:DHI), America’s Builder, today reported that net income per common share attributable to D.R. Horton for its third fiscal quarter ended June 30, 2024 increased
Consolidated revenues in the third quarter of fiscal 2024 increased
The Company's return on equity (ROE) was
During the nine months ended June 30, 2024, net cash provided by operations was
David Auld, Executive Chairman, said, “The D.R. Horton team delivered strong results in our third fiscal quarter of 2024, highlighted by earnings of
“We are well-positioned with our affordable product offerings and flexible lot supply, and we are focused on maximizing returns in each of our communities. We expect to generate increasing levels of consolidated operating cash flows, and our strong liquidity and low leverage provide us with significant financial flexibility. We are maintaining our disciplined approach to capital allocation to enhance the long-term value of our company, including consistent and increasing capital returns to our shareholders through share repurchases and dividends. Based on our strong financial position and expectation for increased cash flows, our Board of Directors recently approved a new share repurchase authorization totaling
“We continue to mourn the recent passing of our Founder, Don Horton. Don built an incredible legacy with our company platform based upon helping as many Americans as possible achieve the dream of homeownership, and we are privileged to continue to build upon his life’s work. On behalf of Don’s family and all of us at D.R. Horton, we thank everyone who reached out to offer their condolences and share memories or attended Don’s memorial service. We greatly appreciate your kindness and tributes to a remarkable man.”
Homebuilding Operations
Homebuilding revenue for the third quarter of fiscal 2024 increased
Homebuilding pre-tax income in the third quarter of fiscal 2024 increased
During the nine months ended June 30, 2024, net cash provided by homebuilding operations was
Net sales orders for the third quarter ended June 30, 2024 increased
At June 30, 2024, the Company had 42,600 homes in inventory, of which 26,200 were unsold. 8,800 of the Company’s unsold homes at June 30, 2024 were completed, of which 990 had been completed for greater than six months. The Company’s homebuilding land and lot portfolio totaled 630,200 lots at the end of the quarter, of which
Rental Operations
The Company's rental operations generated
During the third quarter of fiscal 2024, the Company sold 790 single-family rental homes for
During the third quarter of fiscal 2024, the Company sold 610 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 third quarter ended June 30, 2024, Forestar sold 3,255 lots and generated
Financial Services
For the third quarter ended June 30, 2024, financial services revenues were
Dividends
During the third quarter of fiscal 2024, the Company paid cash dividends of
Share Repurchases
The Company repurchased 3.0 million shares of common stock for
Guidance
Based on current market conditions and the Company’s results for the first nine months of the year, D.R. Horton is updating its fiscal 2024 guidance as follows:
-
Consolidated revenues of approximately
$36.8 billion $37.2 billion - Homes closed by homebuilding operations of 90,000 homes to 90,500 homes
-
Share repurchases of approximately
$1.8 billion
The Company reiterates its fiscal 2024 guidance for cash flow provided by homebuilding operations of approximately
The Company plans to also provide guidance for its fourth quarter of fiscal 2024 on its conference call today.
Conference Call and Webcast Details
The Company will host a conference call today (Thursday, July 18) at 8:30 a.m. Eastern Time. The dial-in number is 888-506-0062 (reference entry code 956414), 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 with our affordable product offerings and flexible lot supply, and we are focused on maximizing returns in each of our communities; we expect to generate increasing levels of consolidated operating cash flows, and our strong liquidity and low leverage provide us with significant financial flexibility; we are maintaining our disciplined capital allocation to enhance the long-term value of our company, including consistent and increasing capital returns to our shareholders through share repurchases and dividends; and based on our strong financial position and expectation for increased cash flows, our Board of Directors recently approved a new share repurchase authorization totaling
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 filed with the Securities and Exchange Commission.
D.R. HORTON, INC. AND SUBSIDIARIES |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(UNAUDITED) |
|||||||
|
June 30,
|
|
September 30,
|
||||
|
(In millions) |
||||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
2,992.3 |
|
|
$ |
3,873.6 |
|
Restricted cash |
|
27.7 |
|
|
|
26.5 |
|
Total cash, cash equivalents and restricted cash |
|
3,020.0 |
|
|
|
3,900.1 |
|
Inventories: |
|
|
|
||||
Construction in progress and finished homes |
|
9,880.5 |
|
|
|
9,001.4 |
|
Residential land and lots — developed, under development, held for development and held for sale |
|
12,585.0 |
|
|
|
10,680.6 |
|
Rental properties |
|
3,070.6 |
|
|
|
2,691.3 |
|
Total inventory |
|
25,536.1 |
|
|
|
22,373.3 |
|
Mortgage loans held for sale |
|
2,578.8 |
|
|
|
2,519.9 |
|
Deferred income taxes, net of valuation allowance of |
|
156.6 |
|
|
|
187.2 |
|
Property and equipment, net |
|
520.9 |
|
|
|
445.4 |
|
Other assets |
|
3,175.5 |
|
|
|
2,993.0 |
|
Goodwill |
|
163.5 |
|
|
|
163.5 |
|
Total assets |
$ |
35,151.4 |
|
|
$ |
32,582.4 |
|
LIABILITIES |
|
|
|
||||
Accounts payable |
$ |
1,412.7 |
|
|
$ |
1,246.2 |
|
Accrued expenses and other liabilities |
|
2,897.0 |
|
|
|
3,103.8 |
|
Notes payable |
|
5,691.0 |
|
|
|
5,094.5 |
|
Total liabilities |
|
10,000.7 |
|
|
|
9,444.5 |
|
EQUITY |
|
|
|
||||
Common stock, |
|
4.0 |
|
|
|
4.0 |
|
Additional paid-in capital |
|
3,458.9 |
|
|
|
3,432.2 |
|
Retained earnings |
|
26,765.3 |
|
|
|
23,589.8 |
|
Treasury stock, 75,398,026 shares and 66,353,688 shares at June 30, 2024 and September 30, 2023, respectively, at cost |
|
(5,571.7 |
) |
|
|
(4,329.8 |
) |
Stockholders’ equity |
|
24,656.5 |
|
|
|
22,696.2 |
|
Noncontrolling interests |
|
494.2 |
|
|
|
441.7 |
|
Total equity |
|
25,150.7 |
|
|
|
23,137.9 |
|
Total liabilities and equity |
$ |
35,151.4 |
|
|
$ |
32,582.4 |
|
D.R. HORTON, INC. AND SUBSIDIARIES |
|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(UNAUDITED) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Nine Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(In millions, except per share data) |
||||||||||||||
Revenues |
$ |
9,965.7 |
|
|
$ |
9,725.6 |
|
|
$ |
26,798.8 |
|
|
$ |
24,956.4 |
|
Cost of sales |
|
7,323.7 |
|
|
|
7,141.8 |
|
|
|
19,817.7 |
|
|
|
18,429.3 |
|
Selling, general and administrative expense |
|
923.6 |
|
|
|
852.1 |
|
|
|
2,639.2 |
|
|
|
2,362.6 |
|
Other (income) expense |
|
(80.6 |
) |
|
|
(52.2 |
) |
|
|
(233.1 |
) |
|
|
(131.9 |
) |
Income before income taxes |
|
1,799.0 |
|
|
|
1,783.9 |
|
|
|
4,575.0 |
|
|
|
4,296.4 |
|
Income tax expense |
|
432.2 |
|
|
|
432.2 |
|
|
|
1,068.8 |
|
|
|
1,026.7 |
|
Net income |
|
1,366.8 |
|
|
|
1,351.7 |
|
|
|
3,506.2 |
|
|
|
3,269.7 |
|
Net income attributable to noncontrolling interests |
|
13.2 |
|
|
|
16.6 |
|
|
|
33.2 |
|
|
|
33.7 |
|
Net income attributable to D.R. Horton, Inc. |
$ |
1,353.6 |
|
|
$ |
1,335.1 |
|
|
$ |
3,473.0 |
|
|
$ |
3,236.0 |
|
|
|
|
|
|
|
|
|
||||||||
Basic net income per common share attributable to D.R.
|
$ |
4.12 |
|
|
$ |
3.93 |
|
|
$ |
10.50 |
|
|
$ |
9.46 |
|
Weighted average number of common shares |
|
328.4 |
|
|
|
339.9 |
|
|
|
330.9 |
|
|
|
342.1 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted net income per common share attributable to D.R.
|
$ |
4.10 |
|
|
$ |
3.90 |
|
|
$ |
10.43 |
|
|
$ |
9.39 |
|
Adjusted weighted average number of common shares |
|
330.1 |
|
|
|
342.3 |
|
|
|
333.0 |
|
|
|
344.7 |
|
|
|
|
|
|
|
|
|
||||||||
Other Consolidated Financial Data |
|
|
|
|
|
|
|
||||||||
Interest charged to cost of sales |
$ |
35.3 |
|
|
$ |
41.3 |
|
|
$ |
96.1 |
|
|
$ |
103.8 |
|
Depreciation and amortization. |
$ |
22.4 |
|
|
$ |
23.7 |
|
|
$ |
63.5 |
|
|
$ |
70.2 |
|
Interest incurred |
$ |
54.5 |
|
|
$ |
57.4 |
|
|
$ |
147.6 |
|
|
$ |
154.2 |
|
D.R. HORTON, INC. AND SUBSIDIARIES |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(UNAUDITED) |
|||||||
|
Nine Months Ended June 30, |
||||||
|
2024 |
|
2023 |
||||
|
(In millions) |
||||||
OPERATING ACTIVITIES |
|
|
|
||||
Net income |
$ |
3,506.2 |
|
|
$ |
3,269.7 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
63.5 |
|
|
|
70.2 |
|
Stock-based compensation expense |
|
92.7 |
|
|
|
80.6 |
|
Deferred income taxes |
|
29.9 |
|
|
|
19.3 |
|
Inventory and land option charges |
|
34.4 |
|
|
|
62.2 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
(Increase) decrease in construction in progress and finished homes |
|
(863.0 |
) |
|
|
576.2 |
|
Increase in residential land and lots –
|
|
(2,012.1 |
) |
|
|
(915.0 |
) |
Increase in rental properties |
|
(375.7 |
) |
|
|
(777.3 |
) |
(Increase) decrease in other assets |
|
(154.4 |
) |
|
|
242.1 |
|
Increase in mortgage loans held for sale |
|
(58.9 |
) |
|
|
(28.4 |
) |
Decrease in accounts payable, accrued expenses and other liabilities |
|
(34.4 |
) |
|
|
(338.5 |
) |
Net cash provided by operating activities |
|
228.2 |
|
|
|
2,261.1 |
|
INVESTING ACTIVITIES |
|
|
|
||||
Expenditures for property and equipment |
|
(133.3 |
) |
|
|
(108.3 |
) |
Proceeds from sale of assets |
|
14.9 |
|
|
|
— |
|
Payments related to business acquisitions, net of cash acquired |
|
(37.9 |
) |
|
|
(202.0 |
) |
Other investing activities |
|
(4.8 |
) |
|
|
1.8 |
|
Net cash used in investing activities |
|
(161.1 |
) |
|
|
(308.5 |
) |
FINANCING ACTIVITIES |
|
|
|
||||
Proceeds from notes payable |
|
1,270.0 |
|
|
|
575.0 |
|
Repayment of notes payable |
|
(640.4 |
) |
|
|
(675.4 |
) |
Borrowings on mortgage repurchase facilities, net |
|
21.8 |
|
|
|
67.3 |
|
Proceeds from stock associated with certain employee benefit plans |
|
12.2 |
|
|
|
18.7 |
|
Cash paid for shares withheld for taxes |
|
(82.9 |
) |
|
|
(55.9 |
) |
Cash dividends paid |
|
(297.5 |
) |
|
|
(256.9 |
) |
Repurchases of common stock |
|
(1,230.3 |
) |
|
|
(759.6 |
) |
Net proceeds from issuance of Forestar common stock |
|
19.7 |
|
|
|
— |
|
Net other financing activities |
|
(19.8 |
) |
|
|
(30.7 |
) |
Net cash used in financing activities |
|
(947.2 |
) |
|
|
(1,117.5 |
) |
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
(880.1 |
) |
|
|
835.1 |
|
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 |
$ |
3,020.0 |
|
|
$ |
3,408.0 |
|
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES: |
|
|
|
||||
Notes payable issued for inventory |
$ |
43.4 |
|
|
$ |
54.5 |
|
Reduction of notes payable upon deconsolidation of variable interest entity |
$ |
(127.8 |
) |
|
$ |
— |
|
Stock issued under employee incentive plans |
$ |
173.2 |
|
|
$ |
110.8 |
|
Repurchases of common stock not settled |
$ |
1.5 |
|
|
$ |
— |
|
D.R. HORTON, INC. AND SUBSIDIARIES |
||||||||||||||||||||
SEGMENT INFORMATION |
||||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||||
|
June 30, 2024 |
|||||||||||||||||||
|
|
Homebuilding |
|
Rental |
|
Forestar |
|
Financial Services |
|
Eliminations and Other (1) |
|
Consolidated |
||||||||
|
|
(In millions) |
||||||||||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents |
|
$ |
2,174.3 |
|
$ |
119.1 |
|
|
$ |
359.2 |
|
$ |
305.7 |
|
$ |
34.0 |
|
|
$ |
2,992.3 |
Restricted cash |
|
|
6.3 |
|
|
2.2 |
|
|
|
— |
|
|
19.2 |
|
|
— |
|
|
|
27.7 |
Inventories: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Construction in progress and finished
|
|
|
10,002.2 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
(121.7 |
) |
|
|
9,880.5 |
Residential land and lots |
|
|
10,502.0 |
|
|
— |
|
|
|
2,238.7 |
|
|
— |
|
|
(155.7 |
) |
|
|
12,585.0 |
Rental properties |
|
|
— |
|
|
3,070.3 |
|
|
|
— |
|
|
— |
|
|
0.3 |
|
|
|
3,070.6 |
|
|
|
20,504.2 |
|
|
3,070.3 |
|
|
|
2,238.7 |
|
|
— |
|
|
(277.1 |
) |
|
|
25,536.1 |
Mortgage loans held for sale |
|
|
— |
|
|
— |
|
|
|
— |
|
|
2,578.8 |
|
|
— |
|
|
|
2,578.8 |
Deferred income taxes, net |
|
|
200.7 |
|
|
(19.9 |
) |
|
|
— |
|
|
— |
|
|
(24.2 |
) |
|
|
156.6 |
Property and equipment, net |
|
|
490.9 |
|
|
1.5 |
|
|
|
6.5 |
|
|
3.8 |
|
|
18.2 |
|
|
|
520.9 |
Other assets |
|
|
2,732.2 |
|
|
71.7 |
|
|
|
70.6 |
|
|
184.9 |
|
|
116.1 |
|
|
|
3,175.5 |
Goodwill |
|
|
134.3 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
29.2 |
|
|
|
163.5 |
|
|
$ |
26,242.9 |
|
$ |
3,244.9 |
|
|
$ |
2,675.0 |
|
$ |
3,092.4 |
|
$ |
(103.8 |
) |
|
$ |
35,151.4 |
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Accounts payable |
|
$ |
1,134.6 |
|
$ |
314.6 |
|
|
$ |
70.9 |
|
$ |
0.1 |
|
$ |
(107.5 |
) |
|
$ |
1,412.7 |
Accrued expenses and other liabilities |
|
|
2,487.8 |
|
|
66.7 |
|
|
|
385.1 |
|
|
244.1 |
|
|
(286.7 |
) |
|
|
2,897.0 |
Notes payable |
|
|
2,257.8 |
|
|
1,035.7 |
|
|
|
706.1 |
|
|
1,691.4 |
|
|
— |
|
|
|
5,691.0 |
|
|
$ |
5,880.2 |
|
$ |
1,417.0 |
|
|
$ |
1,162.1 |
|
$ |
1,935.6 |
|
$ |
(394.2 |
) |
|
$ |
10,000.7 |
|
|
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 and the elimination of intercompany transactions. |
D.R. HORTON, INC. AND SUBSIDIARIES |
||||||||||||||||||||||||
SEGMENT INFORMATION |
||||||||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||||||||
|
|
Three Months Ended June 30, 2024 |
||||||||||||||||||||||
|
|
Homebuilding |
|
Rental |
|
Forestar |
|
Financial Services |
|
Eliminations and Other (1) |
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales |
|
$ |
9,231.2 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
9,231.2 |
|
Land/lot sales and other |
|
|
10.3 |
|
|
|
— |
|
|
|
318.4 |
|
|
|
— |
|
|
|
(250.2 |
) |
|
|
78.5 |
|
Rental property sales |
|
|
— |
|
|
|
413.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
413.7 |
|
Financial services |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
242.3 |
|
|
|
— |
|
|
|
242.3 |
|
|
|
|
9,241.5 |
|
|
|
413.7 |
|
|
|
318.4 |
|
|
|
242.3 |
|
|
|
(250.2 |
) |
|
|
9,965.7 |
|
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales (2) |
|
|
7,017.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(72.5 |
) |
|
|
6,944.8 |
|
Land/lot sales and other |
|
|
5.6 |
|
|
|
— |
|
|
|
246.2 |
|
|
|
— |
|
|
|
(201.1 |
) |
|
|
50.7 |
|
Rental property sales |
|
|
— |
|
|
|
319.3 |
|
|
|
— |
|
|
|
— |
|
|
|
(5.9 |
) |
|
|
313.4 |
|
Inventory and land option charges |
|
|
12.6 |
|
|
|
1.5 |
|
|
|
0.7 |
|
|
|
— |
|
|
|
— |
|
|
|
14.8 |
|
|
|
|
7,035.5 |
|
|
|
320.8 |
|
|
|
246.9 |
|
|
|
— |
|
|
|
(279.5 |
) |
|
|
7,323.7 |
|
Selling, general and administrative expense |
|
|
656.5 |
|
|
|
55.0 |
|
|
|
29.3 |
|
|
|
178.0 |
|
|
|
4.8 |
|
|
|
923.6 |
|
Other (income) expense |
|
|
(22.7 |
) |
|
|
(26.3 |
) |
|
|
(9.4 |
) |
|
|
(27.0 |
) |
|
|
4.8 |
|
|
|
(80.6 |
) |
Income before income taxes |
|
$ |
1,572.2 |
|
|
$ |
64.2 |
|
|
$ |
51.6 |
|
|
$ |
91.3 |
|
|
$ |
19.7 |
|
|
$ |
1,799.0 |
|
|
|
Nine Months Ended June 30, 2024 |
||||||||||||||||||||||
|
|
Homebuilding |
|
Rental |
|
Forestar |
|
Financial Services |
|
Eliminations and Other (1) |
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales |
|
$ |
24,974.2 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
24,974.2 |
|
Land/lot sales and other |
|
|
37.6 |
|
|
|
— |
|
|
|
958.0 |
|
|
|
— |
|
|
|
(811.7 |
) |
|
|
183.9 |
|
Rental property sales |
|
|
— |
|
|
|
980.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
980.2 |
|
Financial services |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
660.5 |
|
|
|
— |
|
|
|
660.5 |
|
|
|
|
25,011.8 |
|
|
|
980.2 |
|
|
|
958.0 |
|
|
|
660.5 |
|
|
|
(811.7 |
) |
|
|
26,798.8 |
|
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales (2) |
|
|
19,130.8 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(195.0 |
) |
|
|
18,935.8 |
|
Land/lot sales and other |
|
|
23.0 |
|
|
|
— |
|
|
|
729.6 |
|
|
|
— |
|
|
|
(657.8 |
) |
|
|
94.8 |
|
Rental property sales |
|
|
— |
|
|
|
763.4 |
|
|
|
— |
|
|
|
— |
|
|
|
(10.7 |
) |
|
|
752.7 |
|
Inventory and land option charges |
|
|
31.2 |
|
|
|
2.2 |
|
|
|
1.0 |
|
|
|
— |
|
|
|
— |
|
|
|
34.4 |
|
|
|
|
19,185.0 |
|
|
|
765.6 |
|
|
|
730.6 |
|
|
|
— |
|
|
|
(863.5 |
) |
|
|
19,817.7 |
|
Selling, general and administrative expense |
|
|
1,874.1 |
|
|
|
163.8 |
|
|
|
86.5 |
|
|
|
500.6 |
|
|
|
14.2 |
|
|
|
2,639.2 |
|
Other (income) expense |
|
|
(73.2 |
) |
|
|
(78.0 |
) |
|
|
(20.7 |
) |
|
|
(75.4 |
) |
|
|
14.2 |
|
|
|
(233.1 |
) |
Income before income taxes |
|
$ |
4,025.9 |
|
|
$ |
128.8 |
|
|
$ |
161.6 |
|
|
$ |
235.3 |
|
|
$ |
23.4 |
|
|
$ |
4,575.0 |
|
Summary Cash Flow Information |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash provided by (used in) operating
|
|
$ |
971.9 |
|
|
$ |
(656.8 |
) |
|
$ |
(277.6 |
) |
|
$ |
156.9 |
|
|
$ |
33.8 |
|
|
$ |
228.2 |
|
_____________________
| (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 |
||||||||||||||||||||||||
SEGMENT INFORMATION |
||||||||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||||||||
|
|
Three Months Ended June 30, 2023 |
||||||||||||||||||||||
|
|
Homebuilding |
|
Rental |
|
Forestar |
|
Financial Services |
|
Eliminations and Other (1) |
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales |
|
$ |
8,703.1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
8,703.1 |
|
Land/lot sales and other |
|
|
30.5 |
|
|
|
— |
|
|
|
368.9 |
|
|
|
— |
|
|
|
(272.5 |
) |
|
|
126.9 |
|
Rental property sales |
|
|
— |
|
|
|
667.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
667.1 |
|
Financial services |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
228.5 |
|
|
|
— |
|
|
|
228.5 |
|
|
|
|
8,733.6 |
|
|
|
667.1 |
|
|
|
368.9 |
|
|
|
228.5 |
|
|
|
(272.5 |
) |
|
|
9,725.6 |
|
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales (2) |
|
|
6,675.6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(69.6 |
) |
|
|
6,606.0 |
|
Land/lot sales and other |
|
|
26.1 |
|
|
|
— |
|
|
|
283.0 |
|
|
|
— |
|
|
|
(238.2 |
) |
|
|
70.9 |
|
Rental property sales |
|
|
— |
|
|
|
458.0 |
|
|
|
— |
|
|
|
— |
|
|
|
(3.9 |
) |
|
|
454.1 |
|
Inventory and land option charges |
|
|
9.0 |
|
|
|
0.9 |
|
|
|
0.9 |
|
|
|
— |
|
|
|
— |
|
|
|
10.8 |
|
|
|
|
6,710.7 |
|
|
|
458.9 |
|
|
|
283.9 |
|
|
|
— |
|
|
|
(311.7 |
) |
|
|
7,141.8 |
|
Selling, general and administrative expense |
|
|
584.9 |
|
|
|
80.0 |
|
|
|
26.4 |
|
|
|
154.7 |
|
|
|
6.1 |
|
|
|
852.1 |
|
Other (income) expense |
|
|
(26.4 |
) |
|
|
(33.9 |
) |
|
|
(3.8 |
) |
|
|
(20.3 |
) |
|
|
32.2 |
|
|
|
(52.2 |
) |
Income before income taxes |
|
$ |
1,464.4 |
|
|
$ |
162.1 |
|
|
$ |
62.4 |
|
|
$ |
94.1 |
|
|
$ |
0.9 |
|
|
$ |
1,783.9 |
|
|
|
Nine Months Ended June 30, 2023 |
||||||||||||||||||||||
|
|
Homebuilding |
|
Rental |
|
Forestar |
|
Financial Services |
|
Eliminations and Other (1) |
|
Consolidated |
||||||||||||
|
|
(In millions) |
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales |
|
$ |
22,862.0 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
22,862.0 |
|
Land/lot sales and other |
|
|
85.2 |
|
|
|
— |
|
|
|
887.1 |
|
|
|
— |
|
|
|
(678.5 |
) |
|
|
293.8 |
|
Rental property sales |
|
|
— |
|
|
|
1,218.6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,218.6 |
|
Financial services |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
582.0 |
|
|
|
— |
|
|
|
582.0 |
|
|
|
|
22,947.2 |
|
|
|
1,218.6 |
|
|
|
887.1 |
|
|
|
582.0 |
|
|
|
(678.5 |
) |
|
|
24,956.4 |
|
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales (2) |
|
|
17,625.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(180.4 |
) |
|
|
17,444.9 |
|
Land/lot sales and other |
|
|
44.4 |
|
|
|
— |
|
|
|
675.1 |
|
|
|
— |
|
|
|
(590.1 |
) |
|
|
129.4 |
|
Rental property sales |
|
|
— |
|
|
|
799.2 |
|
|
|
— |
|
|
|
— |
|
|
|
(6.4 |
) |
|
|
792.8 |
|
Inventory and land option charges |
|
|
47.4 |
|
|
|
2.3 |
|
|
|
23.6 |
|
|
|
— |
|
|
|
(11.1 |
) |
|
|
62.2 |
|
|
|
|
17,717.1 |
|
|
|
801.5 |
|
|
|
698.7 |
|
|
|
— |
|
|
|
(788.0 |
) |
|
|
18,429.3 |
|
Selling, general and administrative expense |
|
|
1,657.5 |
|
|
|
181.0 |
|
|
|
71.3 |
|
|
|
435.7 |
|
|
|
17.1 |
|
|
|
2,362.6 |
|
Other (income) expense |
|
|
(54.1 |
) |
|
|
(70.9 |
) |
|
|
(9.1 |
) |
|
|
(51.6 |
) |
|
|
53.8 |
|
|
|
(131.9 |
) |
Income before income taxes |
|
$ |
3,626.7 |
|
|
$ |
307.0 |
|
|
$ |
126.2 |
|
|
$ |
197.9 |
|
|
$ |
38.6 |
|
|
$ |
4,296.4 |
|
Summary Cash Flow Information |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash provided by (used in) operating
|
|
$ |
2,133.1 |
|
|
$ |
(78.1 |
) |
|
$ |
136.1 |
|
|
$ |
13.9 |
|
|
$ |
56.1 |
|
|
$ |
2,261.1 |
|
_____________________
| (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 June 30, |
|
Nine Months Ended June 30, |
||||||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||
|
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
||||
Northwest |
|
1,458 |
|
$ |
729.5 |
|
1,208 |
|
$ |
647.2 |
|
4,254 |
|
$ |
2,158.4 |
|
3,491 |
|
$ |
1,831.0 |
Southwest |
|
2,488 |
|
|
1,215.3 |
|
2,815 |
|
|
1,345.6 |
|
7,719 |
|
|
3,762.5 |
|
6,064 |
|
|
2,879.8 |
South Central |
|
5,880 |
|
|
1,917.8 |
|
6,078 |
|
|
2,029.6 |
|
17,733 |
|
|
5,759.6 |
|
15,905 |
|
|
5,145.2 |
Southeast |
|
6,089 |
|
|
2,165.1 |
|
6,021 |
|
|
2,182.9 |
|
17,875 |
|
|
6,360.1 |
|
16,617 |
|
|
5,972.9 |
East |
|
4,546 |
|
|
1,614.6 |
|
4,547 |
|
|
1,615.0 |
|
12,825 |
|
|
4,574.9 |
|
11,342 |
|
|
4,031.3 |
North |
|
2,540 |
|
|
1,073.4 |
|
2,210 |
|
|
899.7 |
|
7,120 |
|
|
2,952.9 |
|
5,984 |
|
|
2,413.0 |
|
|
23,001 |
|
$ |
8,715.7 |
|
22,879 |
|
$ |
8,720.0 |
|
67,526 |
|
$ |
25,568.4 |
|
59,403 |
|
$ |
22,273.2 |
HOMES CLOSED |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended June 30, |
|
Nine Months Ended June 30, |
||||||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||
|
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
|
Homes |
|
Value |
||||
Northwest |
|
1,427 |
|
$ |
720.7 |
|
1,209 |
|
$ |
653.6 |
|
4,037 |
|
$ |
2,034.3 |
|
3,471 |
|
$ |
1,864.4 |
Southwest |
|
2,673 |
|
|
1,313.7 |
|
2,316 |
|
|
1,120.1 |
|
7,556 |
|
|
3,647.8 |
|
5,896 |
|
|
2,828.2 |
South Central |
|
6,104 |
|
|
2,009.0 |
|
6,477 |
|
|
2,169.7 |
|
17,323 |
|
|
5,631.4 |
|
16,893 |
|
|
5,609.9 |
Southeast |
|
6,669 |
|
|
2,415.9 |
|
6,616 |
|
|
2,384.0 |
|
18,281 |
|
|
6,591.3 |
|
17,654 |
|
|
6,483.1 |
East |
|
4,748 |
|
|
1,709.0 |
|
4,102 |
|
|
1,464.2 |
|
12,389 |
|
|
4,418.1 |
|
10,469 |
|
|
3,814.0 |
North |
|
2,534 |
|
|
1,062.9 |
|
2,265 |
|
|
911.5 |
|
6,457 |
|
|
2,651.3 |
|
5,606 |
|
|
2,262.4 |
|
|
24,155 |
|
$ |
9,231.2 |
|
22,985 |
|
$ |
8,703.1 |
|
66,043 |
|
$ |
24,974.2 |
|
59,989 |
|
$ |
22,862.0 |
SALES ORDER BACKLOG |
||||||||||
|
|
|
|
|
|
|
|
|
||
|
|
As of June 30, |
||||||||
|
|
2024 |
|
2023 |
||||||
|
|
Homes |
|
Value |
|
Homes |
|
Value |
||
Northwest |
|
764 |
|
$ |
402.2 |
|
744 |
|
$ |
393.7 |
Southwest |
|
1,570 |
|
|
795.9 |
|
1,928 |
|
|
956.5 |
South Central |
|
4,037 |
|
|
1,354.8 |
|
4,807 |
|
|
1,617.6 |
Southeast |
|
4,410 |
|
|
1,642.4 |
|
6,001 |
|
|
2,308.0 |
East |
|
3,817 |
|
|
1,409.2 |
|
3,959 |
|
|
1,432.2 |
North |
|
2,194 |
|
|
949.5 |
|
1,747 |
|
|
739.7 |
|
|
16,792 |
|
$ |
6,554.0 |
|
19,186 |
|
$ |
7,447.7 |
D.R. HORTON, INC. AND SUBSIDIARIES |
|||||||||||
LAND AND LOT POSITION AND HOMES IN INVENTORY |
|||||||||||
HOMEBUILDING SEGMENT |
|||||||||||
LAND AND LOT POSITION |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2024 |
|
September 30, 2023 |
||||||||
|
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 |
13,100 |
|
19,300 |
|
32,400 |
|
14,100 |
|
20,300 |
|
34,400 |
Southwest |
22,600 |
|
27,000 |
|
49,600 |
|
22,600 |
|
30,500 |
|
53,100 |
South Central |
38,100 |
|
108,400 |
|
146,500 |
|
36,700 |
|
69,500 |
|
106,200 |
Southeast |
28,600 |
|
139,000 |
|
167,600 |
|
24,700 |
|
132,900 |
|
157,600 |
East |
31,900 |
|
128,900 |
|
160,800 |
|
27,700 |
|
118,400 |
|
146,100 |
North |
16,600 |
|
56,700 |
|
73,300 |
|
15,300 |
|
55,700 |
|
71,000 |
|
150,900 |
|
479,300 |
|
630,200 |
|
141,100 |
|
427,300 |
|
568,400 |
|
|
|
|
|
|
|
|
|
|
|
|
_____________
| (1) | Lots controlled at June 30, 2024 included approximately 36,200 lots owned or controlled by Forestar, 19,500 of which our homebuilding divisions had under contract to purchase and 16,700 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) |
||||
|
|
|
|
|
|
|
June 30, 2024 |
|
September 30, 2023 |
Northwest |
|
2,500 |
|
2,800 |
Southwest |
|
4,500 |
|
4,700 |
South Central |
|
10,700 |
|
10,800 |
Southeast |
|
11,500 |
|
12,100 |
East |
|
8,300 |
|
7,100 |
North |
|
5,100 |
|
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/20240718346572/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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