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D.R. Horton, Inc., America’s Builder, Reports Fiscal 2023 Second Quarter Earnings and Declares Quarterly Dividend of $0.25 Per Share

D.R. Horton, Inc. (NYSE:DHI):

Fiscal 2023 Second Quarter Highlights

  • Net income attributable to D.R. Horton of $942.2 million or $2.73 per diluted share
  • Consolidated pre-tax income of $1.2 billion, with a pre-tax profit margin of 15.6%
  • Consolidated revenues of $8.0 billion
  • Home sales revenues of $7.4 billion on 19,664 homes closed
  • Net sales orders of 23,142 homes, with an order value of $8.6 billion
  • Rental operations pre-tax income of $34.6 million on $224.1 million of revenues from the sale of 721 single-family rental homes
  • Repurchased 3.2 million shares of common stock for $303.2 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 second fiscal quarter ended March 31, 2023 decreased 32% to $2.73 per diluted share compared to $4.03 per diluted share in the same quarter of fiscal 2022. Net income attributable to D.R. Horton in the second quarter of fiscal 2023 decreased 34% to $942.2 million compared to $1.4 billion in the same quarter of fiscal 2022. Homebuilding revenue for the second quarter of fiscal 2023 was $7.5 billion consistent with the same quarter of fiscal 2022. Homes closed in the quarter decreased 1% to 19,664 homes compared to 19,828 homes closed in the same quarter of fiscal 2022.

For the six months ended March 31, 2023, net income per common share attributable to D.R. Horton decreased 24% to $5.50 per diluted share compared to $7.20 per diluted share in the same period of fiscal 2022. Net income attributable to D.R. Horton for the six months ended March 31, 2023 decreased 26% to $1.9 billion compared to $2.6 billion in the same period of fiscal 2022. Homebuilding revenue for the first six months of fiscal 2023 was $14.2 billion consistent with the same period of fiscal 2022. Homes closed in the first six months of fiscal 2023 decreased 3% to 37,004 homes compared to 38,224 homes closed in the same period of fiscal 2022.

Pre-tax profit margin for the second quarter of fiscal 2023 was 15.6% compared to 23.5% in the same quarter of fiscal 2022. The decline in pre-tax profit margin was primarily due to a 730 basis point decrease in the Company's home sales gross margin and a 50 basis point increase in homebuilding SG&A expense as a percentage of revenues. The current quarter includes $14.2 million in inventory and land option charges in our homebuilding segment of which $13.3 million was for earnest money and pre-acquisition cost write-offs related to land purchase contracts that we have terminated or expect to terminate and $0.9 million was inventory impairments.

Net sales orders for the second quarter ended March 31, 2023 decreased 5% to 23,142 homes and 11% in value to $8.6 billion compared to 24,340 homes and $9.7 billion in the same quarter of the prior year. The Company’s cancellation rate (cancelled sales orders divided by gross sales orders) for the second quarter of fiscal 2023 was 18% compared to 16% in the prior year quarter. Net sales orders for the first six months of fiscal 2023 decreased 20% to 36,524 homes and 25% in value to $13.6 billion compared to 45,862 homes and $18.0 billion in the same period of fiscal 2022. The Company's sales order backlog of homes under contract at March 31, 2023 decreased 43% to 19,237 homes and 44% in value to $7.4 billion compared to 33,859 homes and $13.3 billion at March 31, 2022.

At March 31, 2023, the Company had 43,600 homes in inventory, of which 24,800 were unsold. 6,400 of the Company’s unsold homes at March 31, 2023 were completed. The Company’s homebuilding land and lot portfolio totaled 547,000 lots at the end of the quarter, of which 25% were owned and 75% were controlled through land and lot purchase contracts.

The Company's return on equity (ROE) was 27.2% for the trailing twelve months ended March 31, 2023, and homebuilding return on inventory (ROI) was 35.1% for the same period. ROE is calculated as net income attributable to D.R. Horton for the trailing twelve months divided by average stockholders' equity, where average stockholders' equity is the sum of ending stockholders' equity balances of the trailing five quarters divided by five. Homebuilding ROI is calculated as homebuilding pre-tax income for the trailing twelve months divided by average inventory, where average inventory is the sum of ending homebuilding inventory balances for the trailing five quarters divided by five.

The Company ended the second quarter with $2.4 billion of unrestricted homebuilding cash and $2.0 billion of available capacity on its revolving credit facility for total homebuilding liquidity of $4.4 billion. Homebuilding debt at March 31, 2023 totaled $2.7 billion, which includes $400 million of senior notes that mature in August 2023. The Company’s homebuilding debt to total capital ratio at March 31, 2023 was 11.5%. Homebuilding debt to total capital ratio consists of homebuilding notes payable divided by stockholders’ equity plus homebuilding notes payable.

Donald R. Horton, Chairman of the Board, said, “We are excited to announce that we recently closed our one millionth home, a first for any homebuilder! We are proud to have been a part of a million families achieving their dreams of homeownership over the past 45 years. Thank you to the countless D.R. Horton employees who have been involved in the journey to achieve this remarkable milestone.

“For the second fiscal quarter of 2023, the D.R. Horton team produced solid results, highlighted by EPS of $2.73 per diluted share. Our consolidated pre-tax income was $1.2 billion on revenues of $8.0 billion, with a pre-tax profit margin of 15.6%.

“The spring selling season is off to an encouraging start with our net sales orders increasing 73% sequentially from the first quarter. Despite higher mortgage rates and inflationary pressures, demand improved during the quarter due to normal seasonal factors, coupled with our use of incentives and pricing adjustments to adapt to changing market conditions. Although higher interest rates and economic uncertainty may persist for some time, the supply of both new and existing homes at affordable price points remains limited, and demographics supporting housing demand remain favorable.

“We are well-positioned to navigate changing market conditions with our experienced operators, diverse product offerings and flexible lot supply and are focused on turning our inventory to maximize returns and capital efficiency in each of our communities. The strength of our 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.”

Guidance

Based on current market conditions and the Company’s results for the first half of the year, D.R. Horton is providing fiscal 2023 guidance as follows:

  • Consolidated revenues in a range from $31.5 billion to $33.0 billion
  • Homes closed between 77,000 and 80,000 homes
  • Rental homes/units closed between 4,000 and 5,000 homes/units
  • Income tax rate of approximately 24%
  • Cash provided by both consolidated and homebuilding operations greater than fiscal 2022
  • Share repurchases at a similar dollar amount as fiscal 2022

The Company plans to also provide guidance for its third quarter of fiscal 2023 on its conference call today.

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 second quarter ended March 31, 2023, Forestar sold 2,979 lots and generated $301.5 million of revenue compared to 5,788 lots and $421.6 million of revenue in the prior year quarter. For the six months ended March 31, 2023, Forestar sold 5,242 lots and generated $518.2 million of revenue compared to 10,304 lots and $829.2 million of revenue in the prior year period. Forestar’s pre-tax income in the second quarter of fiscal 2023 was $35.9 million with a pre-tax profit margin of 11.9% compared to $63.2 million of pre-tax income and a 15.0% pre-tax profit margin in the same quarter of fiscal 2022. For the six months ended March 31, 2023, Forestar’s pre-tax income was $63.8 million with a pre-tax profit margin of 12.3% compared to $116.7 million of pre-tax income and a 14.1% pre-tax profit margin in the same period of fiscal 2022.

Financial Services

For the second quarter ended March 31, 2023, financial services revenues were $216.4 million compared to $222.1 million in the same quarter of fiscal 2022. Financial services pre-tax income for the quarter was $85.6 million with a pre-tax profit margin of 39.6% compared to $92.8 million of pre-tax income and a 41.8% pre-tax profit margin in the prior year quarter. For the six months ended March 31, 2023, financial services revenues were $353.4 million compared to $406.4 million in the same period of fiscal 2022. Financial services pre-tax income was $103.8 million with a pre-tax profit margin of 29.4% compared to $159.9 million of pre-tax income and a 39.3% pre-tax profit margin in the prior year period.

Rental Operations

The Company's rental operations generated $34.6 million of pre-tax income on revenues of $224.1 million in the second quarter of fiscal 2023 compared to $102.5 million of pre-tax income on revenues of $222.9 million in the same quarter of fiscal 2022. For the six months ended March 31, 2023, rental operations pre-tax income was $144.9 million on revenues of $551.6 million compared to pre-tax income of $172.5 million on revenues of $379.4 million in the prior year period.

During the second quarter of fiscal 2023, the Company sold 721 single-family rental homes for $224.1 million compared to 368 homes sold for $172.9 million in the prior year quarter. During the six months ended March 31, 2023, the Company sold 1,415 single-family rental homes for $452.1 million compared to 594 homes sold for $253.2 million in the prior year period. At March 31, 2023, the consolidated balance sheet included $2.1 billion of single-family rental property inventory consisting of 8,630 homes, of which 5,980 were completed, and 4,930 lots, of which 930 were finished.

During the second quarter of fiscal 2023, there were no sales of multi-family rental units compared to 126 units sold for $50.0 million in the prior year quarter. During the six months ended March 31, 2023, the Company sold 300 multi-family rental units for $99.5 million compared to 477 units sold for $126.2 million in the prior year period. At March 31, 2023, the consolidated balance sheet included $1.2 billion of multi-family rental property inventory consisting of 7,210 units, of which 6,730 units were under active construction and 480 units were completed.

The Company's rental operating results are reported separately and are not included in the homes closed, revenues or inventories of its homebuilding segment.

Dividends

During the second quarter of fiscal 2023, the Company paid cash dividends of $85.6 million for a total of $171.7 million of dividends paid during the six months ended March 31, 2023. Subsequent to quarter end, the Company declared a quarterly cash dividend of $0.25 per common share that is payable on May 10, 2023 to stockholders of record on May 3, 2023.

Share Repurchases

The Company repurchased 3.2 million shares of common stock for $303.2 million during the second quarter of fiscal 2023, for a total of 4.5 million shares repurchased for $421.3 million during the six months ended March 31, 2023. The Company’s remaining stock repurchase authorization at March 31, 2023 was $17.0 million. In April 2023, our Board of Directors authorized the repurchase of up to $1.0 billion of our common stock, replacing the previous authorization. The new authorization has no expiration date.

Conference Call and Webcast Details

The Company will host a conference call today (Thursday, April 20) at 8:30 a.m. Eastern Time. The dial-in number is 888-506-0062 (reference entry code 420753), 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 the United States since 2002. Founded in 1978 in Fort Worth, Texas, D.R. Horton has operations in 110 markets in 33 states across the United States and closed 83,119 homes in its homebuilding and single-family rental operations during the twelve-month period ended March 31, 2023. The Company is engaged in the construction and sale of high-quality homes through its diverse product portfolio with sales prices generally ranging from $200,000 to over $1,000,000. Through its mortgage, title and insurance subsidiaries, D.R. Horton provides mortgage financing, title services and insurance agency services for its homebuyers. The Company also constructs and sells both single-family and multi-family rental properties and is the majority-owner of Forestar Group Inc., a publicly traded national residential lot development company.

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 navigate changing market conditions with our experienced operators, diverse product offerings and flexible lot supply and are focused on turning our inventory to maximize returns and capital efficiency in each of our communities; the strength of our 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, lot development and rental housing industries and changes in economic, real estate or other conditions; constriction of the credit and public capital markets, which could limit our ability to access capital and increase our costs of capital; reductions in the availability of mortgage financing provided by government agencies, changes in government financing programs, a decrease in our ability to sell mortgage loans on attractive terms or an increase in mortgage interest rates; the risks associated with our land, lot and rental inventory; our ability to effect our growth strategies, acquisitions or investments successfully; the impact of an inflationary, deflationary or higher interest rate environment; supply shortages and other risks of acquiring land, building materials and skilled labor; the effects of public health issues such as a major epidemic or pandemic, including the impact of COVID-19 on the economy and our businesses; the effects of weather conditions and natural disasters on our business and financial results; home warranty and construction defect claims; the effects of health and safety incidents; reductions in the availability of performance bonds; increases in the costs of owning a home; the effects of governmental regulations and environmental matters on our homebuilding and land development operations; the effects of governmental regulations on our financial services operations; competitive conditions within the industries in which we operate; our ability to manage and service our debt and comply with related debt covenants, restrictions and limitations; the effects of negative publicity; the effects of the loss of key personnel; actions by activist stockholders; and information technology failures, data security breaches and our ability to satisfy privacy and data protection laws and regulations. Additional information about issues that could lead to material changes in performance is contained in D.R. Horton’s annual report on Form 10-K and 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)

 

 

March 31,

2023

 

September 30,

2022

 

(In millions)

ASSETS

 

 

 

Cash and cash equivalents

$

3,051.1

 

 

$

2,540.5

 

Restricted cash

 

23.5

 

 

 

32.4

 

Total cash, cash equivalents and restricted cash

 

3,074.6

 

 

 

2,572.9

 

Inventories:

 

 

 

Construction in progress and finished homes

 

9,290.6

 

 

 

9,798.2

 

Residential land and lots — developed, under development,

held for development and held for sale

 

10,049.1

 

 

 

9,313.3

 

Rental properties

 

3,232.0

 

 

 

2,544.2

 

Total inventory

 

22,571.7

 

 

 

21,655.7

 

Mortgage loans held for sale

 

2,124.0

 

 

 

2,386.0

 

Deferred income taxes, net of valuation allowance of $17.8 million

and $17.9 million at March 31, 2023 and September 30, 2022, respectively

 

112.3

 

 

 

141.1

 

Property and equipment, net

 

509.6

 

 

 

471.6

 

Other assets

 

2,615.1

��

 

 

2,960.3

 

Goodwill

 

163.5

 

 

 

163.5

 

Total assets

$

31,170.8

 

 

$

30,351.1

 

LIABILITIES

 

 

 

Accounts payable

$

1,251.3

 

 

$

1,360.3

 

Accrued expenses and other liabilities

 

2,830.8

 

 

 

3,138.3

 

Notes payable

 

5,966.9

 

 

 

6,066.9

 

Total liabilities

 

10,049.0

 

 

 

10,565.5

 

EQUITY

 

 

 

Common stock, $.01 par value, 1,000,000,000 shares authorized,

400,830,778 shares issued and 341,070,276 shares outstanding at March 31, 2023 and

399,172,937 shares issued and 343,953,023 shares outstanding at September 30, 2022

 

4.0

 

 

 

4.0

 

Additional paid-in capital

 

3,358.0

 

 

 

3,349.5

 

Retained earnings

 

20,914.5

 

 

 

19,185.3

 

Treasury stock, 59,760,502 shares and 55,219,914 shares at

March 31, 2023 and September 30, 2022, respectively, at cost

 

(3,563.8

)

 

 

(3,142.5

)

Stockholders’ equity

 

20,712.7

 

 

 

19,396.3

 

Noncontrolling interests

 

409.1

 

 

 

389.3

 

Total equity

 

21,121.8

 

 

 

19,785.6

 

Total liabilities and equity

$

31,170.8

 

 

$

30,351.1

 

 

D.R. HORTON, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

Three Months Ended

March 31,

 

Six Months Ended

March 31,

 

2023

 

2022

 

2023

 

2022

 

(In millions, except per share data)

Revenues

$

7,972.9

 

 

$

7,999.0

 

 

$

15,230.6

 

 

$

15,052.4

 

Cost of sales

 

5,996.2

 

 

 

5,429.9

 

 

 

11,287.5

 

 

 

10,335.6

 

Selling, general and administrative expense

 

773.6

 

 

 

695.1

 

 

 

1,510.5

 

 

 

1,361.0

 

Other (income) expense

 

(42.2

)

 

 

(9.3

)

 

 

(79.9

)

 

 

(24.8

)

Income before income taxes

 

1,245.3

 

 

 

1,883.3

 

 

 

2,512.5

 

 

 

3,380.6

 

Income tax expense

 

295.7

 

 

 

441.0

 

 

 

594.6

 

 

 

792.5

 

Net income

 

949.6

 

 

 

1,442.3

 

 

 

1,917.9

 

 

 

2,588.1

 

Net income attributable to noncontrolling interests

 

7.4

 

 

 

6.0

 

 

 

17.0

 

 

 

10.2

 

Net income attributable to D.R. Horton, Inc.

$

942.2

 

 

$

1,436.3

 

 

$

1,900.9

 

 

$

2,577.9

 

 

 

 

 

 

 

 

 

Basic net income per common share attributable to D.R. Horton, Inc.

$

2.75

 

 

$

4.07

 

 

$

5.54

 

 

$

7.27

 

Weighted average number of common shares

 

342.1

 

 

 

353.1

 

 

 

343.2

 

 

 

354.6

 

 

 

 

 

 

 

 

 

Diluted net income per common share attributable to D.R. Horton, Inc.

$

2.73

 

 

$

4.03

 

 

$

5.50

 

 

$

7.20

 

Adjusted weighted average number of common shares

 

344.9

 

 

 

356.3

 

 

 

345.9

 

 

 

358.2

 

 

 

 

 

 

 

 

 

Other Consolidated Financial Data

 

 

 

 

 

 

 

Interest charged to cost of sales

$

34.0

 

 

$

34.7

 

 

$

62.5

 

 

$

68.0

 

Depreciation and amortization

$

26.7

 

 

$

19.9

 

 

$

46.5

 

 

$

39.3

 

Interest incurred

$

50.6

 

 

$

36.7

 

 

$

96.8

 

 

$

73.6

 

 

D.R. HORTON, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

Six Months Ended

March 31,

 

2023

 

2022

 

(In millions)

OPERATING ACTIVITIES

 

 

 

Net income

$

1,917.9

 

 

$

2,588.1

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

Depreciation and amortization

 

46.5

 

 

 

39.3

 

Stock-based compensation expense

 

51.3

 

 

 

54.6

 

Deferred income taxes

 

28.7

 

 

 

23.6

 

Inventory and land option charges

 

51.4

 

 

 

20.0

 

Changes in operating assets and liabilities:

 

 

 

Decrease (increase) in construction in progress and finished homes

 

537.3

 

 

 

(2,137.4

)

Increase in residential land and lots –

developed, under development, held for development and held for sale

 

(668.7

)

 

 

(528.4

)

Increase in rental properties

 

(689.2

)

 

 

(655.9

)

Decrease (increase) in other assets

 

339.8

 

 

 

(616.7

)

Decrease (increase) in mortgage loans held for sale

 

262.0

 

 

 

(215.5

)

(Decrease) increase in accounts payable, accrued expenses and other liabilities

 

(403.4

)

 

 

593.7

 

Net cash provided by (used in) operating activities

 

1,473.6

 

 

 

(834.6

)

INVESTING ACTIVITIES

 

 

 

Expenditures for property and equipment

 

(79.2

)

 

 

(72.5

)

Payments related to business acquisitions

 

(103.5

)

 

 

 

Other investing activities

 

2.1

 

 

 

3.8

 

Net cash used in investing activities

 

(180.6

)

 

 

(68.7

)

FINANCING ACTIVITIES

 

 

 

Proceeds from notes payable

 

575.0

 

 

 

750.0

 

Repayment of notes payable

 

(650.0

)

 

 

(750.8

)

(Payments) borrowings on mortgage repurchase facility, net

 

(63.4

)

 

 

84.3

 

Proceeds from stock associated with certain employee benefit plans

 

12.9

 

 

 

22.2

 

Cash paid for shares withheld for taxes

 

(55.8

)

 

 

(61.7

)

Cash dividends paid

 

(171.7

)

 

 

(159.2

)

Repurchases of common stock

 

(419.8

)

 

 

(569.8

)

Net proceeds from issuance of Forestar common stock

 

 

 

 

1.7

 

Net other financing activities

 

(18.5

)

 

 

38.5

 

Net cash used in financing activities

 

(791.3

)

 

 

(644.8

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

501.7

 

 

 

(1,548.1

)

Cash, cash equivalents and restricted cash at beginning of period

 

2,572.9

 

 

 

3,237.2

 

Cash, cash equivalents and restricted cash at end of period

$

3,074.6

 

 

$

1,689.1

 

 

D.R. HORTON, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(UNAUDITED)

 

 

 

March 31, 2023

 

 

Homebuilding

 

Forestar

 

Financial

Services

 

Rental

 

Eliminations

and Other (1)

 

Consolidated

 

 

(In millions)

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,364.5

 

$

286.7

 

$

285.5

 

$

89.8

 

 

$

24.6

 

 

$

3,051.1

Restricted cash

 

 

8.5

 

 

 

 

12.6

 

 

2.4

 

 

 

 

 

 

23.5

Inventories:

 

 

 

 

 

 

 

 

 

 

 

 

Construction in progress and finished homes

 

 

9,437.0

 

 

 

 

 

 

 

 

 

(146.4

)

 

 

9,290.6

Residential land and lots

 

 

8,134.1

 

 

1,988.0

 

 

 

 

 

 

 

(73.0

)

 

 

10,049.1

Rental properties

 

 

 

 

 

 

 

 

3,257.2

 

 

 

(25.2

)

 

 

3,232.0

 

 

 

17,571.1

 

 

1,988.0

 

 

 

 

3,257.2

 

 

 

(244.6

)

 

 

22,571.7

Mortgage loans held for sale

 

 

 

 

 

 

2,124.0

 

 

 

 

 

 

 

 

2,124.0

Deferred income taxes, net

 

 

117.4

 

 

 

 

 

 

(7.1

)

 

 

2.0

 

 

 

112.3

Property and equipment, net

 

 

381.0

 

 

5.6

 

 

4.0

 

 

2.5

 

 

 

116.5

 

 

 

509.6

Other assets

 

 

2,477.5

 

 

56.0

 

 

135.1

 

 

37.6

 

 

 

(91.1

)

 

 

2,615.1

Goodwill

 

 

134.3

 

 

 

 

 

 

 

 

 

29.2

 

 

 

163.5

 

 

$

23,054.3

 

$

2,336.3

 

$

2,561.2

 

$

3,382.4

 

 

$

(163.4

)

 

$

31,170.8

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,030.7

 

$

67.7

 

$

 

$

558.7

 

 

$

(405.8

)

 

$

1,251.3

Accrued expenses and other liabilities

 

 

2,508.7

 

 

313.0

 

 

123.1

 

 

30.2

 

 

 

(144.2

)

 

 

2,830.8

Notes payable

 

 

2,680.2

 

 

706.8

 

 

1,554.9

 

 

1,025.0

 

 

 

 

 

 

5,966.9

 

 

$

6,219.6

 

$

1,087.5

 

$

1,678.0

 

$

1,613.9

 

 

$

(550.0

)

 

$

10,049.0

 

 

 

September 30, 2022

 

 

Homebuilding

 

Forestar

 

Financial

Services

 

Rental

 

Eliminations

and Other (1)

 

Consolidated

 

 

(In millions)

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,040.7

 

$

264.8

 

$

103.3

 

$

109.9

 

 

$

21.8

 

 

$

2,540.5

Restricted cash

 

 

11.3

 

 

 

 

19.7

 

 

1.4

 

 

 

 

 

 

32.4

Inventories:

 

 

 

 

 

 

 

 

 

 

 

 

Construction in progress and finished homes

 

 

9,951.5

 

 

 

 

 

 

 

 

 

(153.3

)

 

 

9,798.2

Residential land and lots

 

 

7,372.9

 

 

2,022.4

 

 

 

 

 

 

 

(82.0

)

 

 

9,313.3

Rental properties

 

 

 

 

 

 

 

 

2,572.1

 

 

 

(27.9

)

 

 

2,544.2

 

 

 

17,324.4

 

 

2,022.4

 

 

 

 

2,572.1

 

 

 

(263.2

)

 

 

21,655.7

Mortgage loans held for sale

 

 

 

 

 

 

2,386.0

 

 

 

 

 

 

 

 

2,386.0

Deferred income taxes, net

 

 

146.3

 

 

 

 

 

 

(7.1

)

 

 

1.9

 

 

 

141.1

Property and equipment, net

 

 

361.8

 

 

5.7

 

 

4.3

 

 

2.0

 

 

 

97.8

 

 

 

471.6

Other assets

 

 

2,266.5

 

 

50.1

 

 

492.5

 

 

18.4

 

 

 

132.8

 

 

 

2,960.3

Goodwill

 

 

134.3

 

 

 

 

 

 

 

 

 

29.2

 

 

 

163.5

 

 

$

22,285.3

 

$

2,343.0

 

$

3,005.8

 

$

2,696.7

 

 

$

20.3

 

 

$

30,351.1

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,149.1

 

$

72.2

 

$

0.2

 

$

233.6

 

 

$

(94.8

)

 

$

1,360.3

Accrued expenses and other liabilities

 

 

2,365.7

 

 

365.4

 

 

596.2

 

 

25.0

 

 

 

(214.0

)

 

 

3,138.3

Notes payable

 

 

2,942.6

 

 

706.0

 

 

1,618.3

 

 

800.0

 

 

 

 

 

 

6,066.9

 

 

$

6,457.4

 

$

1,143.6

 

$

2,214.7

 

$

1,058.6

 

 

$

(308.8

)

 

$

10,565.5

_______________

(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 March 31, 2023

 

 

Homebuilding

 

Forestar

 

Financial

Services

 

Rental

 

Eliminations

and Other (1)

 

Consolidated

 

 

(In millions)

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Home sales

 

$

7,449.7

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

7,449.7

 

Land/lot sales and other

 

 

19.9

 

 

 

301.5

 

 

 

 

 

 

 

 

 

(238.7

)

 

 

82.7

 

Rental property sales

 

 

 

 

 

 

 

 

 

 

 

224.1

 

 

 

 

 

 

224.1

 

Financial services

 

 

 

 

 

 

 

 

216.4

 

 

 

 

 

 

 

 

 

216.4

 

 

 

 

7,469.6

 

 

 

301.5

 

 

 

216.4

 

 

 

224.1

 

 

 

(238.7

)

 

 

7,972.9

 

Cost of sales

 

 

 

 

 

 

 

 

 

 

 

 

Home sales (2)

 

 

5,843.0

 

 

 

 

 

 

 

 

 

 

 

 

(61.8

)

 

 

5,781.2

 

Land/lot sales and other

 

 

13.4

 

 

 

225.3

 

 

 

 

 

 

 

 

 

(204.3

)

 

 

34.4

 

Rental property sales

 

 

 

 

 

 

 

 

 

 

 

157.6

 

 

 

(0.8

)

 

 

156.8

 

Inventory and land option charges

 

 

14.2

 

 

 

20.3

 

 

 

 

 

 

0.4

 

 

 

(11.1

)

 

 

23.8

 

 

 

 

5,870.6

 

 

 

245.6

 

 

 

 

 

 

158.0

 

 

 

(278.0

)

 

 

5,996.2

 

Selling, general and administrative expense

 

 

545.6

 

 

 

22.0

 

 

 

146.9

 

 

 

53.5

 

 

 

5.6

 

 

 

773.6

 

Other (income) expense

 

 

(14.5

)

 

 

(2.0

)

 

 

(16.1

)

 

 

(22.0

)

 

 

12.4

 

 

 

(42.2

)

Income before income taxes

 

$

1,067.9

 

 

$

35.9

 

 

$

85.6

 

 

$

34.6

 

 

$

21.3

 

 

$

1,245.3

 

 

 

 

Six Months Ended March 31, 2023

 

 

Homebuilding

 

Forestar

 

Financial

Services

 

Rental

 

Eliminations

and Other (1)

 

Consolidated

 

 

(In millions)

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Home sales

 

$

14,158.9

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

14,158.9

 

Land/lot sales and other

 

 

54.7

 

 

 

518.2

 

 

 

 

 

 

 

 

 

(406.2

)

 

 

166.7

 

Rental property sales

 

 

 

 

 

 

 

 

 

 

 

551.6

 

 

 

 

 

 

551.6

 

Financial services

 

 

 

 

 

 

 

 

353.4

 

 

 

 

 

 

 

 

 

353.4

 

 

 

 

14,213.6

 

 

 

518.2

 

 

 

353.4

 

 

 

551.6

 

 

 

(406.2

)

 

 

15,230.6

 

Cost of sales

 

 

 

 

 

 

 

 

 

 

 

 

Home sales (2)

 

 

10,949.7

 

 

 

 

 

 

 

 

 

 

 

 

(110.9

)

 

 

10,838.8

 

Land/lot sales and other

 

 

18.3

 

 

 

392.1

 

 

 

 

 

 

 

 

 

(352.1

)

 

 

58.3

 

Rental property sales

 

 

 

 

 

 

 

 

 

 

 

341.4

 

 

 

(2.4

)

 

 

339.0

 

Inventory and land option charges

 

 

38.4

 

 

 

22.7

 

 

 

 

 

 

1.4

 

 

 

(11.1

)

 

 

51.4

 

 

 

 

11,006.4

 

 

 

414.8

 

 

 

 

 

 

342.8

 

 

 

(476.5

)

 

 

11,287.5

 

Selling, general and administrative expense

 

 

1,072.6

 

 

 

44.9

 

 

 

281.0

 

 

 

101.0

 

 

 

11.0

 

 

 

1,510.5

 

Other (income) expense

 

 

(27.7

)

 

 

(5.3

)

 

 

(31.4

)

 

 

(37.1

)

 

 

21.6

 

 

 

(79.9

)

Income before income taxes

 

$

2,162.3

 

 

$

63.8

 

 

$

103.8

 

 

$

144.9

 

 

$

37.7

 

 

$

2,512.5

 

Summary Cash Flow Information

 

 

 

 

 

 

 

 

 

 

 

 

Cash provided by (used in) operating activities

 

$

1,456.4

 

 

$

21.3

 

 

$

232.2

 

 

$

(263.3

)

 

$

27.0

 

 

$

1,473.6

 

_______________

(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 March 31, 2022

 

 

Homebuilding

 

Forestar

 

Financial

Services

 

Rental

 

Eliminations

and Other (1)

 

Consolidated

 

 

(In millions)

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Home sales

 

$

7,499.2

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

7,499.2

 

Land/lot sales and other

 

 

7.6

 

 

 

421.6

 

 

 

 

 

 

 

 

(374.4

)

 

 

54.8

 

Rental property sales

 

 

 

 

 

 

 

 

 

 

 

222.9

 

 

 

 

 

 

222.9

 

Financial services

 

 

 

 

 

 

 

 

222.1

 

 

 

 

 

 

 

 

 

222.1

 

 

 

 

7,506.8

 

 

 

421.6

 

 

 

222.1

 

 

 

222.9

 

 

 

(374.4

)

 

 

7,999.0

 

Cost of sales

 

 

 

 

 

 

 

 

 

 

 

 

Home sales (2)

 

 

5,335.2

 

 

 

 

 

 

 

 

 

 

 

 

(43.7

)

 

 

5,291.5

 

Land/lot sales and other

 

 

3.3

 

 

 

328.7

 

 

 

 

 

 

 

 

 

(307.0

)

 

 

25.0

 

Rental property sales

 

 

 

 

 

 

 

 

 

 

 

102.5

 

 

 

(4.3

)

 

 

98.2

 

Inventory and land option charges

 

 

9.8

 

 

 

5.4

 

 

 

 

 

 

 

 

 

 

 

 

15.2

 

 

 

 

5,348.3

 

 

 

334.1

 

 

 

 

 

 

102.5

 

 

 

(355.0

)

 

 

5,429.9

 

Selling, general and administrative expense

 

 

507.3

 

 

 

24.3

 

 

 

138.0

 

 

 

22.8

 

 

 

2.7

 

 

 

695.1

 

Other (income) expense

 

 

(1.6

)

 

 

 

 

 

(8.7

)

 

 

(4.9

)

 

 

5.9

 

 

 

(9.3

)

Income before income taxes

 

$

1,652.8

 

 

$

63.2

 

 

$

92.8

 

 

$

102.5

 

 

$

(28.0

)

 

$

1,883.3

 

 

 

 

Six Months Ended March 31, 2022

 

 

Homebuilding

 

Forestar

 

Financial

Services

 

Rental

 

Eliminations

and Other (1)

 

Consolidated

 

 

(In millions)

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Home sales

 

$

14,155.6

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

14,155.6

 

Land/lot sales and other

 

 

30.5

 

 

 

829.2

 

 

 

 

 

 

 

 

 

(748.7

)

 

 

111.0

 

Rental property sales

 

 

 

 

 

 

 

 

 

 

 

379.4

 

 

 

 

 

 

379.4

 

Financial services

 

 

 

 

 

 

 

 

406.4

 

 

 

 

 

 

 

 

 

406.4

 

 

 

 

14,186.1

 

 

 

829.2

 

 

 

406.4

 

 

 

379.4

 

 

 

(748.7

)

 

 

15,052.4

 

Cost of sales

 

 

 

 

 

 

 

 

 

 

 

 

Home sales (2)

 

 

10,169.1

 

 

 

 

 

 

 

 

 

 

 

 

(81.3

)

 

 

10,087.8

 

Land/lot sales and other

 

 

20.4

 

 

 

662.3

 

 

 

 

 

 

 

 

 

(624.8

)

 

 

57.9

 

Rental property sales

 

 

 

 

 

 

 

 

 

 

 

175.0

 

 

 

(5.1

)

 

 

169.9

 

Inventory and land option charges

 

 

13.7

 

 

 

6.0

 

 

 

 

 

 

0.3

 

 

 

 

 

 

20.0

 

 

 

 

10,203.2

 

 

 

668.3

 

 

 

 

 

 

175.3

 

 

 

(711.2

)

 

 

10,335.6

 

Selling, general and administrative expense

 

 

1,004.9

 

 

 

45.8

 

 

 

263.2

 

 

 

41.4

 

 

 

5.7

 

 

 

1,361.0

 

Other (income) expense

 

 

(7.9

)

 

 

(1.6

)

 

 

(16.7

)

 

 

(9.8

)

 

 

11.2

 

 

 

(24.8

)

Income before income taxes

 

$

2,985.9

 

 

$

116.7

 

 

$

159.9

 

 

$

172.5

 

 

$

(54.4

)

 

$

3,380.6

 

Summary Cash Flow Information

 

 

 

 

 

 

 

 

 

 

 

 

Cash (used in) provided by operating activities

 

$

(416.2

)

 

$

76.6

 

 

$

(63.0

)

 

$

(409.1

)

 

$

(22.9

)

 

$

(834.6

)

_______________

(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 March 31,

 

Six Months Ended March 31,

 

 

2023

 

2022

 

2023

 

2022

 

 

Homes

 

Value

 

Homes

 

Value

 

Homes

 

Value

 

Homes

 

Value

Northwest

 

1,379

 

$

724.1

 

1,342

 

$

768.1

 

2,283

 

$

1,183.9

 

2,570

 

$

1,425.3

Southwest

 

1,995

 

 

953.7

 

2,595

 

 

1,403.2

 

3,249

 

 

1,534.2

 

4,896

 

 

2,587.0

South Central

 

6,021

 

 

1,941.5

 

7,328

 

 

2,511.9

 

9,827

 

 

3,115.6

 

13,190

 

 

4,458.0

Southeast

 

6,679

 

 

2,397.5

 

6,849

 

 

2,640.9

 

10,596

 

 

3,789.9

 

13,243

 

 

4,925.7

East

 

4,482

 

 

1,570.8

 

3,765

 

 

1,413.1

 

6,795

 

 

2,416.4

 

7,745

 

 

2,868.0

North

 

2,586

 

 

1,042.3

 

2,461

 

 

1,012.2

 

3,774

 

 

1,513.2

 

4,218

 

 

1,741.8

 

 

23,142

 

$

8,629.9

 

24,340

 

$

9,749.4

 

36,524

 

$

13,553.2

 

45,862

 

$

18,005.8

 

HOMES CLOSED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

Six Months Ended March 31,

 

 

2023

 

2022

 

2023

 

2022

 

 

Homes

 

Value

 

Homes

 

Value

 

Homes

 

Value

 

Homes

 

Value

Northwest

 

1,280

 

$

690.7

 

1,146

 

$

636.5

 

2,262

 

$

1,210.8

 

2,171

 

$

1,185.4

Southwest

 

1,873

 

 

905.5

 

2,321

 

 

1,135.0

 

3,580

 

 

1,708.2

 

4,265

 

 

2,046.5

South Central

 

5,579

 

 

1,804.1

 

5,610

 

 

1,836.4

 

10,416

 

 

3,440.2

 

11,047

 

 

3,528.8

Southeast

 

5,751

 

 

2,104.6

 

5,504

 

 

1,946.3

 

11,038

 

 

4,099.1

 

10,828

 

 

3,756.5

East

 

3,352

 

 

1,206.3

 

3,469

 

 

1,216.8

 

6,367

 

 

2,349.7

 

6,597

 

 

2,291.5

North

 

1,829

 

 

738.5

 

1,778

 

 

728.2

 

3,341

 

 

1,350.9

 

3,316

 

 

1,346.9

 

 

19,664

 

$

7,449.7

 

19,828

 

$

7,499.2

 

37,004

 

$

14,158.9

 

38,224

 

$

14,155.6

 

SALES ORDER BACKLOG

 

 

 

 

 

 

 

 

 

 

 

As of March 31,

 

 

2023

 

2022

 

 

Homes

 

Value

 

Homes

 

Value

Northwest

 

745

 

$

400.1

 

1,353

 

$

737.6

Southwest

 

1,429

 

 

731.0

 

4,069

 

 

2,036.4

South Central

 

5,206

 

 

1,757.7

 

10,876

 

 

3,754.6

Southeast

 

6,541

 

 

2,478.3

 

9,734

 

 

3,703.9

East

 

3,514

 

 

1,281.5

 

5,365

 

 

2,045.9

North

 

1,802

 

 

751.4

 

2,462

 

 

1,034.9

 

 

19,237

 

$

7,400.0

 

33,859

 

$

13,313.3

 

D.R. HORTON, INC. AND SUBSIDIARIES

LAND AND LOT POSITION AND HOMES IN INVENTORY

HOMEBUILDING SEGMENT

 

 

March 31, 2023

 

September 30, 2022

 

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

12,300

 

25,300

 

37,600

 

11,100

 

32,200

 

43,300

Southwest

22,400

 

32,400

 

54,800

 

22,100

 

36,500

 

58,600

South Central

39,100

 

59,400

 

98,500

 

37,800

 

66,500

 

104,300

Southeast

23,500

 

128,600

 

152,100

 

24,700

 

138,600

 

163,300

East

25,300

 

107,300

 

132,600

 

22,700

 

105,700

 

128,400

North

13,700

 

57,700

 

71,400

 

12,700

 

62,600

 

75,300

 

136,300

 

410,700

 

547,000

 

131,100

 

442,100

 

573,200

 

25 %

 

75 %

 

100 %

 

23 %

 

77 %

 

100 %

_______________

(1)

Lots controlled at March 31, 2023 included approximately 31,500 lots owned or controlled by Forestar, 14,200 of which our homebuilding divisions had under contract to purchase and 17,300 of which our homebuilding divisions had a right of first offer to purchase. Lots controlled at September 30, 2022 included approximately 36,700 lots owned or controlled by Forestar, 17,800 of which our homebuilding divisions had under contract to purchase and 18,900 of which our homebuilding divisions had a right of first offer to purchase.

HOMES IN INVENTORY (1)

 

 

 

 

 

 

 

March 31,

2023

 

September 30,

2022

Northwest

 

2,700

 

2,900

Southwest

 

4,800

 

4,900

South Central

 

11,300

 

12,400

Southeast

 

12,800

 

14,200

East

 

7,500

 

6,800

North

 

4,500

 

5,200

 

 

43,600

 

46,400

_______________

(1)

Homes in inventory exclude model homes and homes related to our single-family rental operations.

 

@drhorton reports Q2 FY23 EPS of $2.73/diluted share $DHI #earnings

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