Delaware | 1-14122 | 75-2386963 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibit |
99.1 | Press Release dated July 21, 2016 related to the Company’s results and related information for the third quarter ended June 30, 2016 and declaring its quarterly dividend. |
D.R. Horton, Inc. | ||||
Date: | July 21, 2016 | By: | /S/ BILL W. WHEAT | |
Bill W. Wheat | ||||
Executive Vice President and | ||||
Chief Financial Officer |
Exhibit Number | Description | |
99.1 | Press Release dated July 21, 2016 |
• | Net income increased 13% to $249.8 million, or $0.66 per diluted share |
• | Pre-tax income increased 13% to $378.6 million |
• | Pre-tax profit margin improved 40 basis points to 11.7% |
• | Net sales orders increased 14% in value to $3.4 billion and 13% in homes to 11,714 |
• | Homes closed increased 9% in value to $3.1 billion and 9% in homes to 10,739 |
• | Sales order backlog increased 17% in value to $4.4 billion and 15% in homes to 14,670 |
• | Net cash provided by operations for the first nine months of fiscal 2016 was $88.6 million |
June 30, 2016 | September 30, 2015 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Homebuilding: | |||||||
Cash and cash equivalents | $ | 862.9 | $ | 1,355.9 | |||
Restricted cash | 11.8 | 9.7 | |||||
Inventories: | |||||||
Construction in progress and finished homes | 4,371.4 | 3,501.2 | |||||
Residential land and lots — developed and under development | 3,948.6 | 4,065.3 | |||||
Land held for development | 155.5 | 202.3 | |||||
Land held for sale | 28.7 | 38.2 | |||||
8,504.2 | 7,807.0 | ||||||
Deferred income taxes, net of valuation allowance of $9.2 million and $10.1 million at June 30, 2016 and September 30, 2015, respectively | 505.1 | 558.1 | |||||
Property and equipment, net | 151.7 | 144.0 | |||||
Other assets | 422.8 | 456.2 | |||||
Goodwill | 87.2 | 87.2 | |||||
10,545.7 | 10,418.1 | ||||||
Financial Services: | |||||||
Cash and cash equivalents | 43.9 | 27.9 | |||||
Mortgage loans held for sale | 634.5 | 631.0 | |||||
Other assets | 109.1 | 74.0 | |||||
787.5 | 732.9 | ||||||
Total assets | $ | 11,333.2 | $ | 11,151.0 | |||
LIABILITIES | |||||||
Homebuilding: | |||||||
Accounts payable | $ | 568.2 | $ | 473.0 | |||
Accrued expenses and other liabilities | 909.8 | 929.2 | |||||
Notes payable | 2,797.1 | 3,333.6 | |||||
4,275.1 | 4,735.8 | ||||||
Financial Services: | |||||||
Accounts payable and other liabilities | 41.1 | 41.9 | |||||
Mortgage repurchase facility | 504.2 | 477.9 | |||||
545.3 | 519.8 | ||||||
Total liabilities | 4,820.4 | 5,255.6 | |||||
EQUITY | |||||||
Common stock, $.01 par value, 1,000,000,000 shares authorized, 379,371,827 shares issued and 372,171,756 shares outstanding at June 30, 2016 and 375,847,442 shares issued and 368,647,371 shares outstanding at September 30, 2015 | 3.8 | 3.8 | |||||
Additional paid-in capital | 2,839.3 | 2,733.8 | |||||
Retained earnings | 3,803.4 | 3,289.6 | |||||
Treasury stock, 7,200,071 shares at June 30, 2016 and September 30, 2015, at cost | (134.3 | ) | (134.3 | ) | |||
Accumulated other comprehensive income | — | 1.4 | |||||
Stockholders’ equity | 6,512.2 | 5,894.3 | |||||
Noncontrolling interests | 0.6 | 1.1 | |||||
Total equity | 6,512.8 | 5,895.4 | |||||
Total liabilities and equity | $ | 11,333.2 | $ | 11,151.0 |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(In millions, except per share data) | |||||||||||||||
Homebuilding: | |||||||||||||||
Revenues: | |||||||||||||||
Home sales | $ | 3,118.7 | $ | 2,857.9 | $ | 8,145.6 | $ | 7,417.4 | |||||||
Land/lot sales and other | 30.1 | 18.5 | 65.2 | 50.6 | |||||||||||
3,148.8 | 2,876.4 | 8,210.8 | 7,468.0 | ||||||||||||
Cost of sales: | |||||||||||||||
Home sales | 2,486.5 | 2,288.9 | 6,512.1 | 5,948.8 | |||||||||||
Land/lot sales and other | 28.4 | 16.1 | 56.2 | 44.1 | |||||||||||
Inventory and land option charges | 8.1 | 15.4 | 16.0 | 34.0 | |||||||||||
2,523.0 | 2,320.4 | 6,584.3 | 6,026.9 | ||||||||||||
Gross profit: | |||||||||||||||
Home sales | 632.2 | 569.0 | 1,633.5 | 1,468.6 | |||||||||||
Land/lot sales and other | 1.7 | 2.4 | 9.0 | 6.5 | |||||||||||
Inventory and land option charges | (8.1 | ) | (15.4 | ) | (16.0 | ) | (34.0 | ) | |||||||
625.8 | 556.0 | 1,626.5 | 1,441.1 | ||||||||||||
Selling, general and administrative expense | 280.4 | 257.8 | 782.0 | 738.2 | |||||||||||
Other (income) | (3.8 | ) | (3.9 | ) | (16.8 | ) | (13.9 | ) | |||||||
Homebuilding pre-tax income | 349.2 | 302.1 | 861.3 | 716.8 | |||||||||||
Financial Services: | |||||||||||||||
Revenues | 83.1 | 74.4 | 205.4 | 183.6 | |||||||||||
General and administrative expense | 56.4 | 46.0 | 153.5 | 124.6 | |||||||||||
Interest and other (income) | (2.7 | ) | (3.3 | ) | (7.2 | ) | (8.8 | ) | |||||||
Financial services pre-tax income | 29.4 | 31.7 | 59.1 | 67.8 | |||||||||||
Income before income taxes | 378.6 | 333.8 | 920.4 | 784.6 | |||||||||||
Income tax expense | 128.8 | 112.4 | 317.8 | 272.8 | |||||||||||
Net income | $ | 249.8 | $ | 221.4 | $ | 602.6 | $ | 511.8 | |||||||
Other comprehensive income, net of income tax | — | — | (1.4 | ) | — | ||||||||||
Comprehensive income | $ | 249.8 | $ | 221.4 | $ | 601.2 | $ | 511.8 | |||||||
Basic: | |||||||||||||||
Net income per share | $ | 0.67 | $ | 0.60 | $ | 1.63 | $ | 1.40 | |||||||
Weighted average number of common shares | 371.8 | 366.8 | 370.4 | 365.9 | |||||||||||
Diluted: | |||||||||||||||
Net income per share | $ | 0.66 | $ | 0.60 | $ | 1.61 | $ | 1.39 | |||||||
Adjusted weighted average number of common shares | 375.9 | 370.3 | 374.4 | 369.3 | |||||||||||
Other Consolidated Financial Data: | |||||||||||||||
Interest charged to cost of sales | $ | 43.3 | $ | 42.8 | $ | 119.4 | 112.1 | ||||||||
Depreciation and amortization | $ | 13.8 | $ | 14.3 | $ | 41.4 | $ | 39.7 | |||||||
Interest incurred | $ | 35.4 | $ | 43.2 | $ | 118.0 | $ | 126.2 |
Nine Months Ended June 30, | |||||||
2016 | 2015 | ||||||
(In millions) | |||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 602.6 | $ | 511.8 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 41.4 | 39.7 | |||||
Amortization of discounts and fees | 4.1 | 4.1 | |||||
Stock based compensation expense | 36.8 | 31.7 | |||||
Excess income tax benefit from employee stock awards | (6.3 | ) | (7.3 | ) | |||
Deferred income taxes | 46.7 | 20.7 | |||||
Inventory and land option charges | 16.0 | 34.0 | |||||
Gain on sale of debt securities collateralized by residential real estate | (4.5 | ) | — | ||||
Changes in operating assets and liabilities: | |||||||
Increase in construction in progress and finished homes | (879.1 | ) | (252.1 | ) | |||
Decrease (increase) in residential land and lots – developed, under development, held for development and held for sale | 151.3 | (120.7 | ) | ||||
Increase in other assets | (4.6 | ) | (3.2 | ) | |||
Increase in mortgage loans held for sale | (3.5 | ) | (91.5 | ) | |||
Increase in accounts payable, accrued expenses and other liabilities | 87.7 | 21.4 | |||||
Net cash provided by operating activities | 88.6 | 188.6 | |||||
INVESTING ACTIVITIES | |||||||
Purchases of property and equipment | (65.2 | ) | (43.3 | ) | |||
Increase in restricted cash | (2.1 | ) | (1.7 | ) | |||
Net principal decrease (increase) of other mortgage loans and real estate owned | 4.3 | (6.3 | ) | ||||
Proceeds from sale (purchases) of debt securities collateralized by residential real estate | 35.8 | (14.8 | ) | ||||
Payments related to acquisition of a business | — | (68.7 | ) | ||||
Net cash used in investing activities | (27.2 | ) | (134.8 | ) | |||
FINANCING ACTIVITIES | |||||||
Proceeds from notes payable | 26.3 | 1,560.8 | |||||
Repayment of notes payable | (543.9 | ) | (1,433.5 | ) | |||
Proceeds from stock associated with certain employee benefit plans | 61.8 | 24.0 | |||||
Excess income tax benefit from employee stock awards | 6.3 | 7.3 | |||||
Cash dividends paid | (88.9 | ) | (68.6 | ) | |||
Net cash (used in) provided by financing activities | (538.4 | ) | 90.0 | ||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (477.0 | ) | 143.8 | ||||
Cash and cash equivalents at beginning of period | 1,383.8 | 661.8 | |||||
Cash and cash equivalents at end of period | $ | 906.8 | $ | 805.6 |
NET SALES ORDERS | ||||||||||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||
Homes | Value | Homes | Value | Homes | Value | Homes | Value | |||||||||||||||||
East | 1,361 | $ | 382.1 | 1,251 | $ | 339.8 | 3,784 | $ | 1,064.2 | 3,702 | $ | 994.6 | ||||||||||||
Midwest | 527 | 200.4 | 431 | 162.1 | 1,372 | 517.9 | 1,342 | 503.3 | ||||||||||||||||
Southeast | 3,930 | 1,023.4 | 3,392 | 894.7 | 10,663 | 2,768.8 | 8,835 | 2,298.9 | ||||||||||||||||
South Central | 3,588 | 887.3 | 3,208 | 793.7 | 10,089 | 2,463.5 | 9,386 | 2,266.5 | ||||||||||||||||
Southwest | 535 | 126.3 | 480 | 105.5 | 1,352 | 313.8 | 1,237 | 274.3 | ||||||||||||||||
West | 1,773 | 815.7 | 1,636 | 713.6 | 4,810 | 2,250.7 | 4,401 | 1,946.8 | ||||||||||||||||
11,714 | $ | 3,435.2 | 10,398 | $ | 3,009.4 | 32,070 | $ | 9,378.9 | 28,903 | $ | 8,284.4 |
HOMES CLOSED | ||||||||||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||
Homes | Value | Homes | Value | Homes | Value | Homes | Value | |||||||||||||||||
East | 1,380 | $ | 381.2 | 1,335 | $ | 364.8 | 3,568 | $ | 984.3 | 3,441 | $ | 941.4 | ||||||||||||
Midwest | 478 | 179.9 | 557 | 205.4 | 1,209 | 465.2 | 1,324 | 480.1 | ||||||||||||||||
Southeast | 3,495 | 912.5 | 2,969 | 775.3 | 9,310 | 2,433.4 | 7,867 | 2,035.8 | ||||||||||||||||
South Central | 3,355 | 810.5 | 2,932 | 705.5 | 8,697 | 2,107.3 | 8,196 | 1,898.0 | ||||||||||||||||
Southwest | 414 | 93.0 | 442 | 96.7 | 1,084 | 246.8 | 1,085 | 243.0 | ||||||||||||||||
West | 1,617 | 741.6 | 1,621 | 710.2 | 4,194 | 1,908.6 | 4,159 | 1,819.1 | ||||||||||||||||
10,739 | $ | 3,118.7 | 9,856 | $ | 2,857.9 | 28,062 | $ | 8,145.6 | 26,072 | $ | 7,417.4 |
SALES ORDER BACKLOG | ||||||||||||
As of June 30, | ||||||||||||
2016 | 2015 | |||||||||||
Homes | Value | Homes | Value | |||||||||
East | 1,646 | $ | 492.9 | 1,712 | $ | 469.9 | ||||||
Midwest | 575 | 219.1 | 545 | 214.5 | ||||||||
Southeast | 4,864 | 1,313.3 | 3,869 | 1,053.7 | ||||||||
South Central | 5,048 | 1,307.5 | 4,548 | 1,160.2 | ||||||||
Southwest | 839 | 191.1 | 577 | 127.4 | ||||||||
West | 1,698 | 856.3 | 1,510 | 718.8 | ||||||||
14,670 | $ | 4,380.2 | 12,761 | $ | 3,744.5 |