D.R. Horton Inc. (DHI, Financial) filed Quarterly Report for the period ended 2009-12-31.
D.r. Horton Inc. has a market cap of $3.78 billion; its shares were traded at around $11.91 with and P/S ratio of 1.1. The dividend yield of D.r. Horton Inc. stocks is 1.3%.DHI is in the portfolios of John Buckingham of Al Frank Asset Management, Inc., John Keeley of Keeley Fund Management, Brian Rogers of T Rowe Price Equity Income Fund, Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Charles Brandes of Brandes Investment.
During the three months ended December 31, 2009, our net sales orders were 45% higher than a year ago. This represents the second consecutive quarter in which our net sales orders have improved from the comparable prior year quarter. Also, the average value of our net sales orders for the most recent quarter of $210,600 represented an increase of 3% from both the prior year and immediately preceding quarter. Pre-tax income for the three months ended December 31, 2009 was $42.8 million compared to a pre-tax loss of $61.3 million in the comparable period of the prior year. Our results for the remainder of the fiscal year will be dependent on the levels of sales we achieve in the upcoming spring and summer selling season and the level of gross profit on those home sales. Our sales and gross profit could be severely impacted by prolonged weakness in the economy and continued high levels of unemployment as well as by the scheduled expiration of the homebuyer federal tax credit in June 2010, and the announced end of the Feds open market purchases of mortgage-backed securities in March 2010.
We continue to remain cautious regarding our outlook for the homebuilding industry. Although the improvements in our operating performance and recent signs of stabilization of certain market conditions have been encouraging, the timing of a sustainable recovery remains unclear. Due to the uncertainty surrounding market conditions, we have continued to evaluate our homebuilding and financial services assets for recoverability. Our significant assets, excluding cash, and those whose recoverability are most impacted by market conditions include inventory, earnest money deposits and pre-acquisition costs related to land and lot option contracts, tax assets, both on amounts reflected as deferred and as a receivable, and owned mortgage loans. These assets collectively comprised 90% of our total non-cash assets at December 31, 2009. Our evaluations reflected our expectation of continued challenges in the homebuilding industry, while also considering the improvements we achieved in our operating results during the three months ended December 31, 2009. Based on our evaluations, during the three months ended December 31, 2009, we recorded inventory impairment charges of $1.7 million and recorded additional reserves for losses of $2.8 million associated with mortgage loans held in portfolio and the limited recourse provisions on previously sold mortgage loans and $0.9 million related to mortgage reinsurance activities. The declines in inventory impairment charges and write-offs of earnest money deposits and pre-acquisition costs reflect the improvement in gross profit from home sales experienced during the three months ended December 31, 2009. We will evaluate whether further impairment charges, valuation adjustments or write-offs are necessary on these assets in the coming quarters. Additional discussion of these evaluations and charges is presented below.
The value of net sales orders increased 50%, to $850.1 million (4,037 homes) for the three months ended December 31, 2009, from $567.5 million (2,777 homes) for the same period of 2008. The number of net sales orders increased 45% for the three-month period ended December 31, 2009 compared to the same period of 2008. These results reflect significant improvement over the prior year, and suggest the severe declines in our net sales orders experienced in recent years may be moderating. These results were impacted by increased levels of affordability, recent declines in the number of new homes available for sale, and the federal governments monetary and fiscal policies and programs including the homebuyer federal tax credit and the Feds continuation of open market purchases of mortgage-backed securities The largest percentage increase in net sales orders occurred in our East and West regions resulting from new communities in the Carolinas and lower cancellation rates in our West region markets. The South Central regions net sales order comparison benefitted from both new communities and lower cancellation rates in all of its markets. Our sales volumes for the remainder of fiscal 2010 will depend on the strength of the overall economy, the impact of changes in federal government programs and policies on the homebuilding industry and our ability to successfully implement our operating strategies in each of our markets.
The average price of our net sales orders in the three months ended December 31, 2009 was $210,600, an increase of 3% from the $204,400 average in the comparable period of 2008, with modest fluctuations across most regions with the largest increase in the East region resulting from higher sales prices in our Maryland, Virginia and New Jersey markets. As compared to the prior year quarter, the relatively consistent average prices of our net sales orders in the other regions reflect some recent stabilization in market conditions. However, given the uncertainty of future conditions in the homebuilding industry, we expect continued volatility in prices of our net sales orders for the remainder of fiscal 2010. We will continue our efforts to offer affordable product offerings to our target customer base and will adjust our product mix, geographic mix and pricing within our homebuilding markets to meet market conditions.
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D.r. Horton Inc. has a market cap of $3.78 billion; its shares were traded at around $11.91 with and P/S ratio of 1.1. The dividend yield of D.r. Horton Inc. stocks is 1.3%.DHI is in the portfolios of John Buckingham of Al Frank Asset Management, Inc., John Keeley of Keeley Fund Management, Brian Rogers of T Rowe Price Equity Income Fund, Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Charles Brandes of Brandes Investment.
Highlight of Business Operations:
We are one of the largest homebuilding companies in the United States, constructing and selling single-family housing through our operating divisions in 26 states and 73 markets as of December 31, 2009, primarily under the name of D.R. Horton, Americas Builder. Our homebuilding operations primarily include the construction and sale of single-family homes with sales prices generally ranging from $90,000 to $700,000, with an average closing price of $200,400 during the three months ended December 31, 2009. Approximately 83% and 81% of home sales revenues were generated from the sale of single-family detached homes in the three months ended December 31, 2009 and 2008, respectively. The remainder of home sales revenues were generated from the sale of attached homes, such as town homes, duplexes, triplexes and condominiums (including some mid-rise buildings), which share common walls and roofs.During the three months ended December 31, 2009, our net sales orders were 45% higher than a year ago. This represents the second consecutive quarter in which our net sales orders have improved from the comparable prior year quarter. Also, the average value of our net sales orders for the most recent quarter of $210,600 represented an increase of 3% from both the prior year and immediately preceding quarter. Pre-tax income for the three months ended December 31, 2009 was $42.8 million compared to a pre-tax loss of $61.3 million in the comparable period of the prior year. Our results for the remainder of the fiscal year will be dependent on the levels of sales we achieve in the upcoming spring and summer selling season and the level of gross profit on those home sales. Our sales and gross profit could be severely impacted by prolonged weakness in the economy and continued high levels of unemployment as well as by the scheduled expiration of the homebuyer federal tax credit in June 2010, and the announced end of the Feds open market purchases of mortgage-backed securities in March 2010.
We continue to remain cautious regarding our outlook for the homebuilding industry. Although the improvements in our operating performance and recent signs of stabilization of certain market conditions have been encouraging, the timing of a sustainable recovery remains unclear. Due to the uncertainty surrounding market conditions, we have continued to evaluate our homebuilding and financial services assets for recoverability. Our significant assets, excluding cash, and those whose recoverability are most impacted by market conditions include inventory, earnest money deposits and pre-acquisition costs related to land and lot option contracts, tax assets, both on amounts reflected as deferred and as a receivable, and owned mortgage loans. These assets collectively comprised 90% of our total non-cash assets at December 31, 2009. Our evaluations reflected our expectation of continued challenges in the homebuilding industry, while also considering the improvements we achieved in our operating results during the three months ended December 31, 2009. Based on our evaluations, during the three months ended December 31, 2009, we recorded inventory impairment charges of $1.7 million and recorded additional reserves for losses of $2.8 million associated with mortgage loans held in portfolio and the limited recourse provisions on previously sold mortgage loans and $0.9 million related to mortgage reinsurance activities. The declines in inventory impairment charges and write-offs of earnest money deposits and pre-acquisition costs reflect the improvement in gross profit from home sales experienced during the three months ended December 31, 2009. We will evaluate whether further impairment charges, valuation adjustments or write-offs are necessary on these assets in the coming quarters. Additional discussion of these evaluations and charges is presented below.
The value of net sales orders increased 50%, to $850.1 million (4,037 homes) for the three months ended December 31, 2009, from $567.5 million (2,777 homes) for the same period of 2008. The number of net sales orders increased 45% for the three-month period ended December 31, 2009 compared to the same period of 2008. These results reflect significant improvement over the prior year, and suggest the severe declines in our net sales orders experienced in recent years may be moderating. These results were impacted by increased levels of affordability, recent declines in the number of new homes available for sale, and the federal governments monetary and fiscal policies and programs including the homebuyer federal tax credit and the Feds continuation of open market purchases of mortgage-backed securities The largest percentage increase in net sales orders occurred in our East and West regions resulting from new communities in the Carolinas and lower cancellation rates in our West region markets. The South Central regions net sales order comparison benefitted from both new communities and lower cancellation rates in all of its markets. Our sales volumes for the remainder of fiscal 2010 will depend on the strength of the overall economy, the impact of changes in federal government programs and policies on the homebuilding industry and our ability to successfully implement our operating strategies in each of our markets.
The average price of our net sales orders in the three months ended December 31, 2009 was $210,600, an increase of 3% from the $204,400 average in the comparable period of 2008, with modest fluctuations across most regions with the largest increase in the East region resulting from higher sales prices in our Maryland, Virginia and New Jersey markets. As compared to the prior year quarter, the relatively consistent average prices of our net sales orders in the other regions reflect some recent stabilization in market conditions. However, given the uncertainty of future conditions in the homebuilding industry, we expect continued volatility in prices of our net sales orders for the remainder of fiscal 2010. We will continue our efforts to offer affordable product offerings to our target customer base and will adjust our product mix, geographic mix and pricing within our homebuilding markets to meet market conditions.
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