D.R. Horton Inc. (DHI, Financial) filed Quarterly Report for the period ended 2008-12-31.
D.R. Horton Inc. one of the largest homebuilders in the United States builds high quality single-family homes designed principally for the entry-level and move-up markets. Founded in 1978 the company builds and sells homes with a geographic presence in the Midwest Mid-Atlantic Southeast Southwest and Western regions of the United States. The company also provides mortgage financing and title services. D.R. Horton Inc. has a market cap of $2.02 billion; its shares were traded at around $9.14 with and P/S ratio of 0.31. The dividend yield of D.R. Horton Inc. stocks is 2.35%.
Due to the challenging market conditions discussed above, we have continued to evaluate our homebuilding and financial services assets for recoverability in accordance with the appropriate accounting standards. Our most significant assets, excluding cash, and those whose recoverability are most impacted by industry 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, which collectively comprise 95% of our total non-cash assets. Our evaluations reflected our expectation of continued and increasing challenges in the homebuilding industry, and our belief that these challenging conditions will persist for some time. Based on our evaluations, we recorded inventory impairment charges of $55.1 million, wrote-off earnest money deposits and pre-acquisition costs related to land and lot option contracts we no longer plan to pursue of $1.1 million, and recorded expense of $3.5 million associated with limited recourse provisions on previously sold mortgage loans during the three months ended December 31, 2008. While these impairment charges and write-offs were less than the amounts recorded during fiscal 2008, continued weakness in market conditions will require us to continually 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.
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D.R. Horton Inc. one of the largest homebuilders in the United States builds high quality single-family homes designed principally for the entry-level and move-up markets. Founded in 1978 the company builds and sells homes with a geographic presence in the Midwest Mid-Atlantic Southeast Southwest and Western regions of the United States. The company also provides mortgage financing and title services. D.R. Horton Inc. has a market cap of $2.02 billion; its shares were traded at around $9.14 with and P/S ratio of 0.31. The dividend yield of D.R. Horton Inc. stocks is 2.35%.
Highlight of Business Operations:
We are the largest homebuilding company in the United States based on homes closed during the twelve months ended December 31, 2008. We construct and sell high quality homes through our operating divisions in 27 states and 77 markets in the United States as of December 31, 2008, 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 $900,000, with an average closing price of $217,700 during the three months ended December 31, 2008. Approximately 81% and 79% of home sales revenues were generated from the sale of single-family detached homes in the three months ended December 31, 2008 and 2007, 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.Due to the challenging market conditions discussed above, we have continued to evaluate our homebuilding and financial services assets for recoverability in accordance with the appropriate accounting standards. Our most significant assets, excluding cash, and those whose recoverability are most impacted by industry 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, which collectively comprise 95% of our total non-cash assets. Our evaluations reflected our expectation of continued and increasing challenges in the homebuilding industry, and our belief that these challenging conditions will persist for some time. Based on our evaluations, we recorded inventory impairment charges of $55.1 million, wrote-off earnest money deposits and pre-acquisition costs related to land and lot option contracts we no longer plan to pursue of $1.1 million, and recorded expense of $3.5 million associated with limited recourse provisions on previously sold mortgage loans during the three months ended December 31, 2008. While these impairment charges and write-offs were less than the amounts recorded during fiscal 2008, continued weakness in market conditions will require us to continually 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.
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