Summary
D.R. Horton, Inc. (DHI) demonstrated a significant turnaround in fiscal year 2012, emerging from a severe industry downturn. The company experienced a substantial increase in homebuilding revenues, homes closed, and net sales orders, signaling a robust recovery in demand for new homes across most of its operating markets. This improved performance was driven by strategic capital investments, efficient inventory management, and disciplined cost control, leading to a substantial increase in pre-tax income and net income, a significant improvement from the previous fiscal year's results. The company's financial services segment also contributed positively, with increased revenues and pre-tax income. D.R. Horton's strong balance sheet and liquidity position allowed it to increase investments in land, lot, and home inventories to meet growing demand and expand operations. The company's diversified geographic presence across 26 states and 77 metropolitan markets helped mitigate the impact of localized economic cycles. With a substantial increase in sales order backlog, D.R. Horton is well-positioned for continued growth in fiscal year 2013.
Financial Highlights
36 data points| Revenue | $4.35B |
| Interest Expense | $26.90M |
| Net Income | $956.30M |
| EPS (Basic) | $3.01 |
| EPS (Diluted) | $2.77 |
| Shares Outstanding (Basic) | 318.10M |
| Shares Outstanding (Diluted) | 359.00M |
Key Highlights
- 1Homebuilding revenues increased by 19% to $4.2 billion in fiscal 2012, driven by a 13% increase in homes closed and a 5% rise in average selling prices.
- 2Net sales orders surged by 21% in volume and 29% in value, reaching $4.8 billion, indicating strong demand.
- 3Sales order backlog more than doubled, increasing by 61% to $1.7 billion, providing a strong foundation for fiscal year 2013.
- 4Home sales gross margins improved by 160 basis points to 17.7%, reflecting better pricing and cost management.
- 5Inventory impairments and land option cost write-offs decreased significantly to $6.2 million from $45.4 million in the prior year.
- 6Homebuilding SG&A expenses decreased as a percentage of revenue to 12.5% from 13.5%.
- 7Net income dramatically increased to $956.3 million, a substantial improvement from $71.8 million in fiscal 2011, and diluted EPS rose to $2.77 from $0.23.