D.R. Horton, Inc., America’s Builder, Reports Fiscal 2012 Third Quarter Results and
D.R. Horton, Inc., America’s Builder, Reports Fiscal 2012 Third Quarter Results and Declares Quarterly Dividend
FORT WORTH, Texas--(BUSINESS WIRE)--Jul. 27, 2012-- D.R. Horton, Inc. (NYSE:DHI), America’s Builder, today reported that net income for its third fiscal quarter ended June 30, 2012 increased to $787.8 million, or $2.22 per diluted share. The quarterly results included a non-cash tax benefit of $716.7 million from a reduction of the Company’s valuation allowance for its deferred tax asset. Net income for the same quarter of fiscal 2011 was $28.7 million, or $0.09 per diluted share. Homebuilding revenue for the third quarter of fiscal 2012 increased 14% to $1.1 billion from $975.4 million in the same quarter of 2011. Homes closed in the quarter increased 9% to 4,957, compared to 4,555 homes in the year ago quarter.
For the nine months ended June 30, 2012, net income increased to $856.2 million, or $2.47 per diluted share. The nine-month results included a non-cash tax benefit of $716.7 million from a reduction of the Company’s valuation allowance for its deferred tax asset. Net income for the same period of 2011 was $36.0 million, or $0.11 per diluted share, which included a tax benefit of $57.8 million. Homebuilding revenue for the nine months ended June 30, 2012 increased 19% to $2.9 billion from $2.5 billion in the first nine months of fiscal 2011. Homes closed in the nine-month period increased 14% to 13,315 homes, compared to 11,708 homes in the same period of fiscal 2011.
Net sales orders for the third quarter ended June 30, 2012 increased 25% to 6,079 homes from 4,874 homes in the year ago quarter and the value of net sales orders increased 32% to $1.4 billion from $1.1 billion. The Company’s cancellation rate (cancelled sales orders divided by gross sales orders) for the third quarter of fiscal 2012 was 23%. Net sales orders for the first nine months of fiscal 2012 increased 20% to 15,772 homes from 13,180 homes in the first nine months of fiscal 2011, and the value of net sales orders increased 27% to $3.5 billion from $2.8 billion.
The Company’s sales order backlog of homes under contract at June 30, 2012 increased 31% to 7,311 homes from 5,600 homes at June 30, 2011. The value of the backlog increased 40% to $1.7 billion at June 30, 2012 from $1.2 billion a year ago.
During the third quarter, the Company issued $350 million principal amount of 4.75% senior notes due May 2017. The Company ended the quarter with $1.2 billion of homebuilding unrestricted cash and marketable securities and net homebuilding debt to total capital of 18.3%. Net homebuilding debt to total capital consists of homebuilding notes payable net of cash and marketable securities divided by total equity plus homebuilding notes payable net of cash and marketable securities.
The Company has declared a quarterly cash dividend of $0.0375 per share. The dividend is payable on August 24, 2012 to stockholders of record on August 13, 2012.
Donald R. Horton, Chairman of the Board, said, “Our homebuilding and financial services operations delivered another quarter of strong results highlighted by $72 million in pre-tax income. All of our homebuilding regions were profitable in the third quarter, and each region reported increases in sales, backlog, revenue and pre-tax income compared to last year. Our net sales orders improved 25%, while active selling communities decreased 5% from a year ago. Our lots controlled under option increased 41%, positioning us to grow our community count in fiscal 2013.
“With 7,311 homes in backlog at June 30th and continued year-over-year improvement in sales through the first part of July, we expect increased profitability in our fiscal fourth quarter. We will continue to utilize our strong balance sheet and liquidity to profitably grow our business into fiscal 2013.”
The Company will host a conference call today (Friday, July 27th) at 10:00 a.m. Eastern time