National Homebuilder D.R. Horton Posts Strong 1st Quarter

National Homebuilder D.R. Horton Reports 1st Profit Since 2007

Thu, Feb 4, 2010

Homebuilder D.R. Horton Posts Strong 1st Quarter.

D.R. Horton reported that homebuilding revenue for the first quarter ending December 31, 2009 increased 23% to $1.1 billion, from $900.3 million in the same quarter of fiscal 2009. Homes put under contract increased 36% to 5,529, from 4,068 homes closed in the same quarter of fiscal 2009.

Net sales orders for the first quarter increased 45% to 4,037 homes ($850 million), compared to 2,777 homes ($568 million) for the same quarter of fiscal 2009. The Company’s backlog of homes under contract as of December 31, 2009 was 4,136 homes ($884 million), as compared to 4,006 homes ($889 million) at December 31, 2008.

Donald R. Horton, Chairman of the Board, said, “We are excited to report a quarterly pre-tax profit of $42.8 million and net income of $192.0 million. Our homes closed increased 36% over the prior year while our homes gross margin improved 460 basis points sequentially to 17.1 %. Our homebuilding SG&A dollars increased only 1% from the year ago quarter while homebuilding revenues increased 23%. Our balance sheet remains strong with a homebuilding cash balance of $1.9 billion and net homebuilding leverage improving to 28.0%. Our net sales orders also showed significant improvement from the year ago quarter, increasing 45%. Our focus on providing affordable homes positioned us to take advantage of the demand created by the federal tax credit for first-time homebuyers, and we believe that the extension of the tax credit will benefit our spring selling season.”

Entering the Sarasota/Manatee market last year D.R. Horton has gone from virtually no presence in the market to establishing itself in numerous subdivisions. The firm is building in: Oak Vistas, Phillippi Pines, Red Hawk Reserve and Regent Lake in Sarasota County and Legends Bay at IMG Academies, Covered Bridge and Walker’s Cove at River Place and Greyhawk Landing in Manatee County.

D.R. Horton, Inc. is one of the largest homebuilders in the United States, constructing more than 16,000 homes in its fiscal year ending September 30, 2009. Founded in 1978 in Fort Worth, Texas, D.R. Horton operates in 73 markets in 26 states. D.R. Horton also provides mortgage financing and title services for homebuyers through its mortgage and title subsidiaries. www.drhorton.com

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