D.R. Horton, Inc., America’s Builder, Reports Fourth Quarter and Fiscal 2014 Earnings and Declares Quarterly Dividend of $0.0625 Per Share

D.R. Horton, Inc. (NYSE:DHI), America’s Builder, today reported that pre-tax income for its fourth fiscal quarter ended September 30, 2014 increased 24% to $250.8 million, compared to $202.8 million in the same quarter of fiscal 2013. The quarterly results included $21.3 million of pre-tax inventory and land option charges to cost of sales, compared to $27.1 million in the same quarter of fiscal 2013. Net income for the fourth fiscal quarter was $166.3 million, or $0.45 per diluted share, compared to $139.5 million, or $0.40 per diluted share, in the same quarter of fiscal 2013. Homebuilding revenue for the fourth quarter of fiscal 2014 increased 33% to $2.4 billion from $1.8 billion in the same quarter of 2013. Homes closed in the quarter increased 25% to 8,612, compared to 6,866 homes in the year-ago quarter.

For the fiscal year ended September 30, 2014, the Company's pre-tax income increased 24% to $814.2 million, compared to $657.8 million in fiscal 2013. The fiscal year results included $85.2 million of pre-tax inventory and land option charges to cost of sales, compared to $31.1 million in the prior year. Net income for the fiscal year ended September 30, 2014 was $533.5 million, or $1.50 per diluted share, compared to $462.7 million, or $1.33 per diluted share, in fiscal 2013. Homebuilding revenue for the fiscal year ended September 30, 2014 increased 29% to $7.9 billion from $6.1 billion in fiscal 2013. Homes closed in fiscal 2014 increased 19% to 28,670, compared to 24,155 homes in fiscal 2013.

Net sales orders for the fourth quarter ended September 30, 2014 increased 38% to 7,135 homes from 5,160 homes in the year-ago quarter and the value of net sales orders increased 41% to $2.0 billion from $1.4 billion. The Company’s cancellation rate (cancelled sales orders divided by gross sales orders) for the fourth quarter of fiscal 2014 was 28%. Net sales orders for the fiscal year ended September 30, 2014 increased 18% to 29,709 homes from 25,120 homes in fiscal 2013 and the value of net sales orders increased 27% to $8.3 billion from $6.6 billion. The Company’s sales order backlog of homes under contract at September 30, 2014 increased 21% to 9,888 homes from 8,205 homes at September 30, 2013. The value of the backlog increased 29% to $2.9 billion at September 30, 2014 from $2.2 billion a year ago.

The Company ended the year with $632.5 million of homebuilding unrestricted cash and net homebuilding debt to total capital of 34.5%. Net homebuilding debt to total capital consists of homebuilding notes payable net of cash divided by total equity plus homebuilding notes payable net of cash.

The Company has declared a quarterly cash dividend of $0.0625 per common share. The dividend is payable on December 15, 2014 to stockholders of record on December 1, 2014.

Donald R. Horton, Chairman of the Board, said, “With the largest market share in Company history and 46% more homes closed than any other builder in the most recently reported twelve-month period, D.R. Horton has solidified its position to be the nation’s largest builder for the 13th consecutive year in calendar 2014. We completed fiscal 2014 with strong profitability in our fourth quarter with $250.8 million of pre-tax income and a 10.1% pre-tax operating margin. Net homes sold, closed and in backlog all increased by double-digit percentages in both the fourth quarter and the full fiscal year. For the year, our homebuilding and financial services operations generated a 24% increase in pre-tax income to $814.2 million, on consolidated revenues of $8.0 billion.

“We are well-positioned to continue to grow both our revenues and pre-tax profits at a double-digit pace with our solid balance sheet, industry-leading market share, broad geographic footprint, diversified product offerings across our three brands and our inventories of homes and finished lots. With a 29% increase in our beginning backlog value and a greater than 20% year-over-year increase in our October net sales orders, we are off to a great start in fiscal 2015.”

The Company will host a conference call today (Tuesday, November 11th) at 10:00 a.m. Eastern time. The dial-in number is 877-407-8033, and the call will also be webcast from the Company’s website at investor.drhorton.com.

D.R. Horton, Inc., America’s Builder, has been the largest homebuilder by volume in the United States for twelve consecutive years. Founded in 1978 in Fort Worth, Texas, D.R. Horton has operations in 79 markets in 27 states across the United States and closed 28,670 homes during its fiscal year ended September 30, 2014. The Company is engaged in the construction and sale of high-quality homes through its diverse brand portfolio that includes D.R. Horton, Express Homes and Emerald Homes with sales prices ranging from $100,000 to over $1,000,000. 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 that with the largest market share in Company history and 46% more homes closed than any other builder in the most recently reported twelve-month period, D.R. Horton has solidified its position to be the nation’s largest builder for the 13th consecutive year in calendar 2014 and that we are well-positioned to continue to grow both our revenues and pre-tax profits at a double-digit pace with our solid balance sheet, industry-leading market share, broad geographic footprint, diversified product offerings across our three brands and our inventories of homes and finished lots. The forward-looking statements also include that with a 29% increase in our beginning backlog value and a greater than 20% year-over-year increase in our October net sales orders, we are off to a great start in fiscal 2015.

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: potential deterioration in homebuilding industry conditions or general economic conditions; the cyclical nature of the homebuilding industry and changes in economic, real estate and other conditions; constriction of the credit markets, which could limit our ability to access capital and increase our costs of capital; reductions in the availability of mortgage financing and the liquidity provided by government-sponsored enterprises, the effects of government 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 and lot inventory; home warranty and construction defect claims; supply shortages and other risks of acquiring land, building materials and skilled labor; reductions in the availability of performance bonds; increases in the costs of owning a home; the impact of an inflationary, deflationary or higher interest rate environment; the effects of governmental regulations and environmental matters on our homebuilding operations; the effects of governmental regulation on our financial services operations; our substantial debt and our ability to comply with related debt covenants, restrictions and limitations; competitive conditions within the homebuilding and financial services industries; our ability to effect our growth strategies or acquisitions successfully; our ability to realize the full amount of our deferred income tax assets; the effects of the loss of key personnel; the effects of negative publicity; and information technology failures and data security breaches. 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 our most recent quarterly report on Form 10-Q, both of which are filed with the Securities and Exchange Commission.

WEBSITE ADDRESS: www.drhorton.com