10-KPeriod: FY2015

HORTON D R INC /DE/ Annual Report, Year Ended Sep 30, 2015

Filed November 19, 2015For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) demonstrated strong performance in fiscal year 2015, reporting significant increases in homebuilding revenues and pre-tax income. The company, the largest homebuilder by volume in the U.S., saw a 34% rise in homebuilding revenues to $10.6 billion and a 32% increase in homebuilding pre-tax income to $1.0 billion. This growth was driven by a 28% increase in homes closed, reaching 36,648 units, with an average closing price of $285,700. The company's strategic expansion of its product offerings with brands like Emerald Homes (luxury) and Express Homes (affordable) contributed to this expansion across various buyer segments. Financially, D.R. Horton reported a substantial increase in net income to $750.7 million and diluted earnings per share of $2.03, up from $533.5 million and $1.50, respectively, in the prior year. The company also maintained a strong balance sheet, with total equity increasing to $5.9 billion, and managed its debt effectively, with a debt-to-capital ratio improving. The financial services segment also saw significant growth, with revenues up 59% and pre-tax income up 131%, indicating successful integration and performance of ancillary services. Overall, the report showcases a company capitalizing on a recovering housing market through broad geographic reach and a diverse product portfolio.

Financial Highlights

36 data points
Beta

Revenue

$10.82B

Net Income

$750.70M

6.9% Net Margin

EPS (Diluted)

$2.03

Total Assets

$11.15B

Cash & Equivalents

$1.38B

Free Cash Flow

$644.30M

Financial Statements
Beta
Revenue$10.82B
Interest Expense$0
Net Income$750.70M
EPS (Basic)$2.05
EPS (Diluted)$2.03
Shares Outstanding (Basic)366.30M
Shares Outstanding (Diluted)369.80M

Key Highlights

  • 1Homebuilding revenues increased by 34% to $10.6 billion in fiscal year 2015.
  • 2The company closed 36,648 homes, a 28% increase from the prior year, with an average closing price of $285,700.
  • 3Net income rose by 41% to $750.7 million, and diluted earnings per share increased to $2.03.
  • 4Financial services revenues grew by 59% to $265 million, with pre-tax income increasing by 131% to $105.1 million.
  • 5Sales order backlog increased by 10% in value to $3.1 billion, indicating strong future demand.
  • 6Homebuilding SG&A expenses decreased as a percentage of revenue to 9.6%, demonstrating operational leverage.
  • 7Total equity grew to $5.9 billion, reflecting solid financial health.

Frequently Asked Questions

D.R. Horton's total revenues increased by approximately 35% to $10.8 billion in fiscal year 2015, with homebuilding revenues alone growing by 34% to $10.6 billion.

In fiscal year 2015, D.R. Horton closed 36,648 homes, a 28% increase from the previous year. The average closing price for these homes was $285,700, an increase of 5% from fiscal year 2014.

The company stated that it expects its land and lot inventories in fiscal year 2016 to remain relatively consistent to slightly higher than its fiscal year 2015 average inventory levels. They also aim to increase the amount of land and finished lots controlled through option purchase contracts to mitigate ownership risk.

The financial services segment experienced significant growth, with total revenues increasing by 59% to $265 million and pre-tax income soaring by 131% to $105.1 million. This performance was driven by increased mortgage origination volume and improved loan sale execution.

D.R. Horton's strategy focuses on actively managing inventory investments across its operating markets to diversify geographic risk and optimize returns. This includes modifying product offerings, sales pace, home prices, and incentives as necessary to meet consumer demand and align with lot supply and construction activity.