10-KPeriod: FY2001

HORTON D R INC /DE/ Annual Report, Year Ended Sep 30, 2001

Filed November 20, 2001For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) reported strong performance for the fiscal year ended September 30, 2001, demonstrating significant growth in both its core homebuilding and financial services segments. Total revenues increased by 21.9% to $4.46 billion, driven by a substantial rise in home sales, partly bolstered by strategic acquisitions of Fortress-Florida and Emerald Builders. The company's geographic diversification across 20 states and 38 markets proved resilient, with particular strength noted in the West and Southwest regions. Net income also saw a healthy increase, reflecting improved profitability within the homebuilding segment due to higher gross profit percentages, alongside expanded financial services operations. Looking ahead, DHI announced a significant merger agreement with Schuler Homes, Inc. for approximately $1.2 billion, signaling continued aggressive growth and market expansion. The company maintained a robust financial position with substantial cash reserves and access to a significant revolving credit facility. Despite increased inventory levels and debt to support growth, DHI's financial condition remained solid. Investors should note the company's ongoing commitment to growth through acquisitions, balanced with efforts to manage costs and capitalize on market demand.

Key Highlights

  • 1Total revenues increased 21.9% to $4.46 billion for the year ended September 30, 2001.
  • 2Home sales revenue grew significantly, reaching $4.29 billion, with an increase in average selling price to $200,700.
  • 3Net income rose to $257 million, a substantial increase from $192 million in the prior year.
  • 4The company completed two strategic acquisitions: Fortress-Florida and Emerald Builders, contributing to revenue growth.
  • 5D.R. Horton announced a definitive agreement to merge with Schuler Homes, Inc. in a transaction valued at approximately $1.2 billion.
  • 6The financial services segment experienced strong revenue growth of 45.3%, driven by mortgage and title services.
  • 7The company ended the fiscal year with $239.3 million in cash and cash equivalents.

Frequently Asked Questions

For the fiscal year ended September 30, 2001, D.R. Horton, Inc. reported consolidated revenues of $4.46 billion, a 21.9% increase from the prior year. Net income also saw a significant rise, reaching $257 million, compared to $192 million in fiscal year 2000.

D.R. Horton pursued growth through a combination of organic expansion in existing and new markets and strategic acquisitions. During fiscal year 2001, the company acquired Fortress-Florida and Emerald Builders. Furthermore, a significant merger agreement with Schuler Homes, Inc. was announced, valued at approximately $1.2 billion, indicating a strong focus on inorganic growth.

As of September 30, 2001, D.R. Horton had $239.3 million in cash and cash equivalents. The company maintained access to a $825 million unsecured revolving credit facility, with substantial borrowing capacity remaining. While inventories and total debt increased to support business growth and acquisitions, the company's liquidity and access to capital remained strong.

The homebuilding segment saw strong performance with revenues increasing by 22.7% to $4.29 billion. This growth was driven by an increase in homes closed (21,371 homes), a higher average selling price of $200,700, and contributions from recent acquisitions. The company benefited from strong housing demand and improved cost of sales as a percentage of revenue.