D.R. Horton, Inc., America’s Builder, Reports Fiscal 2008 Third Quarter Results and Declares Quarterly Dividend

2008-08-05 06:00:00

D.R. Horton, Inc., America’s Builder, Reports Fiscal 2008 Third Quarter Results and Declares Quarterly Dividend

FORT WORTH, Texas–(EMWPresswire)–D.R. Horton, Inc. (NYSE:DHI), Americas

Builder, today reported a net loss for its third fiscal quarter ended

June 30, 2008 of $399.3 million or $1.26 per diluted share. The

quarterly results included $330.4 million in pre-tax charges to cost of

sales for inventory impairments and write-offs of deposits and

pre-acquisition costs related to land option contracts that the Company

does not intend to pursue, and an after-tax valuation allowance

primarily for deferred tax assets created during the quarter of $168.7

million. The net loss for the same quarter of fiscal 2007 was $823.8

million or $2.62 per diluted share. Homebuilding revenue for the third

quarter of fiscal 2008 totaled $1.4 billion, compared to $2.5 billion in

the same quarter of fiscal 2007. Homes closed in the current quarter

totaled 6,167, compared to 9,643 homes closed in the year ago quarter.

For the nine months ended June 30, 2008, the Company reported a net loss

totaling $1.8 billion, or $5.81 per diluted share. The nine-month

results included pre-tax charges to cost of sales of $1.4 billion of

inventory impairments and write-offs of deposits and pre-acquisition

costs related to land option contracts that the Company does not intend

to pursue, and an after-tax valuation allowance of $883.0 million to the

deferred tax asset. The net loss for the nine months ended June 30, 2007

was $662.3 million or $2.11 per diluted share. Homebuilding revenue for

the nine months ended June 30, 2008 totaled $4.8 billion, compared to

$8.0 billion for the same period of fiscal 2007. Homes closed in the

nine-month period totaled 19,435, compared to 29,637 homes closed in the

same period of fiscal 2007.

The Companys sales backlog of homes under

contract at June 30, 2008 was 8,281 homes ($1.9 billion), compared to

15,801 homes ($4.4 billion) at June 30, 2007. Net sales orders for the

third quarter ended June 30, 2008 totaled 5,501 homes ($1.2 billion),

compared to 8,559 homes ($2.0 billion) for the same quarter of fiscal

2007. The Companys cancellation rate

(cancelled sales orders divided by gross sales orders) for the third

quarter of fiscal 2008 was 39%. Net sales orders for the first nine

months of fiscal 2008 were 17,274 homes ($3.8 billion), compared to

27,313 homes ($6.9 billion) for the same period of fiscal 2007.

Donald R. Horton, Chairman of the Board, said, Although

market conditions in the homebuilding industry remain challenging, we

continue to focus on reducing our inventory and generating cash flow

from operations. We generated approximately $390 million of cash flow

from operations this quarter, bringing the year-to-date total to $1.4

billion and increasing our homebuilding cash balance to $819 million. We

also maintained our focus on controlling our costs, reducing our

homebuilding SG&A expenses by approximately $73 million in our quarter

ended June 30, 2008, compared to the year ago quarter.

The Company will host a conference call today (Tuesday, August 5th)

at 10:00 a.m. Eastern time. The dial-in number is 800-374-9096, and the

call will also be webcast from www.drhorton.com

on the Investor Relations

page.

The Company has declared a quarterly cash dividend of seven and one-half

cents ($0.075) per share. The dividend is payable on August 28, 2008 to

stockholders of record on August 18, 2008.

D.R. Horton, Inc., Americas Builder, is the

largest homebuilder in the United States, delivering more than 41,000

homes in its fiscal year ended September 30, 2007. Founded in 1978 in

Fort Worth, Texas, D.R. Horton has operations in 80 markets in 27 states

in the Northeast, Midwest, Southeast, South Central, Southwest,

California and West regions of the United States. The Company is engaged

in the construction and sale of high quality homes with sales prices

ranging from $90,000 to over $900,000. D.R. Horton also provides

mortgage financing and title services for homebuyers through its

mortgage and title subsidiaries.

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 our continued focus on reducing inventory, generating cash flow

from operations, maintaining our focus on controlling costs and paying

the declared dividend. 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: further

deterioration in industry conditions; the reduction of liquidity in the

financial markets; limitations on our strategies in responding to

adverse conditions in the industry; changes in general economic, real

estate, construction and other business conditions; changes in interest

rates, the availability of mortgage financing or other costs of owning a

home; the effects of governmental regulations and environmental matters;

our substantial debt; failure to comply with certain financial tests or

meet ratios contained in our revolving credit facility; competitive

conditions within our industry; the availability of capital; our ability

to effect any future growth strategies successfully; our ability to

realize our deferred income tax asset; and the uncertainties inherent in

home warranty and construction defect claims matters. Additional

information about issues that could lead to material changes in

performance is contained in D.R. Hortons

annual report on Form 10-K and most recent quarterly report on Form

10-Q, which are filed with the Securities and Exchange Commission.

WEBSITE ADDRESS: www.drhorton.com

D.R. HORTON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three months ended

Nine months ended

June 30,

June 30,

2008

2007

2008

2007

(In millions, except per share data)

Homebuilding:

Revenues:

Home sales

$

1,415.0

$

2,470.5

$

4,619.8

$

7,753.1

Land/lot sales

18.3

77.6

145.1

212.7

1,433.3

2,548.1

4,764.9

7,965.8

Cost of sales:

Home sales

1,271.7

2,058.8

4,097.1

6,380.2

Land/lot sales

14.2

65.6

118.0

187.6

Inventory impairments and land option cost write-offs

330.4

852.0

1,410.0

1,010.8

1,616.3

2,976.4

5,625.1

7,578.6

Gross profit (loss):

Home sales

143.3

411.7

522.7

1,372.9

Land/lot sales

4.1

12.0

27.1

25.1

Inventory impairments and land option cost write-offs

(330.4

)

(852.0

)

(1,410.0

)

(1,010.8

)

(183.0

)

(428.3

)

(860.2

)

387.2

Selling, general and administrative expense

194.7

267.5

616.1

858.9

Goodwill impairment

425.6

425.6

Interest expense

11.7

22.9

Loss on early retirement of debt

2.6

12.1

2.6

12.1

Other income

(3.5

)

(3.9

)

(7.0

)

(5.7

)

Operating loss from Homebuilding

(388.5

)

(1,129.6

)

(1,494.8

)

(903.7

)

Financial Services:

Revenues

30.9

50.0

98.8

158.3

General and administrative expense

23.1

36.0

76.4

119.3

Interest expense

0.6

4.1

2.7

20.5

Interest and other income

(2.2

)

(8.3

)

(8.5

)

(34.2

)

Operating income from Financial Services

9.4

18.2

28.2

52.7

Loss before income taxes

(379.1

)

(1,111.4

)

(1,466.6

)

(851.0

)

Provision for (benefit from) income taxes

20.2

(287.6

)

367.2

(188.7

)

Net loss

$

(399.3

)

$

(823.8

)

$

(1,833.8

)

$

(662.3

)

Basic and Diluted:

Net loss per share

$

(1.26

)

$

(2.62

)

$

(5.81

)

$

(2.11

)

Weighted average number of common shares

316.0

314.3

315.5

313.9

Other Consolidated Financial Data:

Interest amortized to home and land/lot cost of sales

$

44.9

$

60.8

$

178.1

D.R. Horton, Inc.
Stacey Dwyer, EVP, 817-390-8200

free cash grants, free grant money, free money, cash grants, scholarships, business grants, foundation grants, government grants, debt grants, consolidation, college tuition, financial aid, medical grants, personal grants, medical bills, unsecured loans, no interest loans, financing, loans, capital, non profit organizations

Major Newsire & Press Release Distribution with Basic Starting at only $19 and Complete OTCBB / Financial Distribution only $89

Get Unlimited Organic Website Traffic to your Website
TheNFG.com now offers Organic Lead Generation & Traffic Solutions