Market Overview

D.R. Horton, Inc., America's Builder, Reports Fiscal 2019 Second Quarter Earnings and Declares Quarterly Dividend of $0.15 Per Share

Share:

D.R. Horton, Inc. (NYSE:DHI):

Fiscal 2019 Second Quarter Highlights - comparisons to the prior year
quarter

  • Net income attributable to D.R. Horton was $351.3 million or $0.93 per
    diluted share
  • Consolidated pre-tax income increased 4% to $462.8 million
  • Consolidated pre-tax profit margin was 11.2%
  • Homes closed increased 10% to 13,480 homes and 8% in value to $4.0
    billion
  • Net sales orders increased 6% to 16,805 homes and 4% in value to $4.9
    billion
  • Repurchased 2.0 million shares of common stock for $75.6 million

D.R.
Horton, Inc.
(NYSE:DHI), America's Builder, today reported that net
income attributable to D.R. Horton for its second fiscal quarter ended
March 31, 2019 was $351.3 million, or $0.93 per diluted share, compared
to $351.0 million, or $0.91 per diluted share, in the same quarter of
fiscal 2018. Homebuilding revenue for the second quarter of
fiscal 2019 increased 8% to $4.0 billion from $3.7 billion in the same
quarter of fiscal 2018. Homes closed in the quarter increased 10% to
13,480 homes compared to 12,281 homes closed in the same quarter of
fiscal 2018.

For the six months ended March 31, 2019, net income attributable to D.R.
Horton increased 18% to $638.4 million, or $1.68 per diluted share,
compared to $540.3 million, or $1.41 per diluted share, in the same
period of fiscal 2018. Homebuilding revenue for the first six
months of fiscal 2019 increased 7% to $7.4 billion from $6.9 billion in
the same period of fiscal 2018. Homes closed in the first six months of
fiscal 2019 increased 8% to 24,980 homes compared to 23,069 homes closed
in the same period of fiscal 2018.

Net sales orders for the second quarter ended March 31, 2019 increased
6% to 16,805 homes and 4% in value to $4.9 billion compared to 15,828
homes and $4.7 billion in the same quarter of the prior year. Excluding
the effects of recent acquisitions, the Company's second quarter net
sales orders increased 3% from the prior year quarter. The Company's
cancellation rate (cancelled sales orders divided by gross sales orders)
for the second quarter of fiscal 2019 was 19%, consistent with the prior
year quarter. Net sales orders for the first six months of fiscal 2019
increased 5% to 27,847 homes and 3% in value to $8.2 billion compared to
26,581 homes and $8.0 billion in the same period of fiscal 2018.

The Company had 32,100 homes in inventory excluding model homes at
March 31, 2019, and its homebuilding land and lot portfolio was 316,400
lots, of which 38% were owned and 62% were controlled through land
purchase contracts.

The Company ended the second quarter with $557.3 million of homebuilding
unrestricted cash and a homebuilding debt to total capital ratio of
22.9%. Homebuilding debt to total capital consists of homebuilding notes
payable divided by stockholders' equity plus homebuilding notes payable.

Donald R. Horton, Chairman of the Board, said, "The D.R. Horton team
delivered solid results in our second quarter. Our consolidated revenues
increased 9% to $4.1 billion, and our pre-tax profit margin was 11.2%.
The spring selling season is going well, as our net sales orders
increased 52% sequentially from the December quarter and 6% from the
March quarter last year. These results reflect the strength of our
experienced operational teams, industry-leading market share, broad
geographic footprint and affordable product offerings across multiple
brands.

"Our continued strategic focus is to consolidate market share while
growing our revenues and profits, generating strong annual cash flows
and returns and maintaining a flexible financial position. With 32,100
homes in inventory at the end of March and 316,400 lots owned and
controlled, we are well-positioned for the remainder of fiscal 2019 and
future years."

Dividends

During the second quarter of fiscal 2019, the Company paid cash
dividends of $55.9 million. Subsequent to quarter-end, the Company
declared a quarterly cash dividend of $0.15 per common share that is
payable on May 28, 2019 to stockholders of record on May 13, 2019.

Share Repurchases

The Company repurchased 2.0 million shares of common stock for $75.6
million during the second quarter of fiscal 2019, for a total of 6.1
million shares of common stock for $216.2 million during the six months
ended March 31, 2019. The Company's remaining stock repurchase
authorization at March 31, 2019 was $159.3 million.

Forestar

Forestar
Group Inc.
(NYSE:FOR)("Forestar"), a majority-owned subsidiary of
D.R. Horton, is a publicly-traded residential lot development company,
which currently operates in 41 markets and 17 states. Forestar's results
of operations for the periods presented are fully consolidated in the
Company's financial statements with the 25% interest not owned by the
Company reported as noncontrolling interests.

For the second quarter ended March 31, 2019, Forestar sold 548 lots and
generated $65.4 million of revenue compared to 304 lots and $22.6
million of revenue in the prior year period. For the six months ended
March 31, 2019, Forestar sold 1,066 lots and generated $103.8 million of
revenue compared to 559 lots and $53.5 million of revenue from the
acquisition date through March 31, 2018. These results are included in
the Company's segment information following the consolidated financials.

Subsequent to quarter-end, Forestar issued $350 million principal amount
of 8.0% senior notes. The notes are due April 15, 2024, with interest
payable semi-annually. On its conference call today, D.R. Horton will
provide an update on Forestar's operations, capital structure and
future growth plans.

DHI Communities

DHI Communities, a wholly-owned D.R. Horton subsidiary, is a
multi-family rental company that has four projects under active
construction and two projects that are substantially complete at
March 31, 2019. During the second quarter of fiscal 2019, DHI
Communities sold its first multi-family rental project for $73.4 million
and recorded a gain on the sale of $29.3 million which is included in
the consolidated statements of operations for the three and six months
ended March 31, 2019. At March 31, 2019 and September 30, 2018, the
consolidated balance sheets included $170.2 million and $173.2 million,
respectively, of assets related to DHI Communities.

Guidance

Based on current market conditions and the Company's results for the
first half of fiscal 2019, D.R. Horton is providing fiscal 2019 guidance
as follows:

  • Consolidated revenues between $16.7 billion and $17.0 billion
  • Homes closed in the range of 55,000 homes to 56,000 homes
  • Effective tax rate of approximately 24.5%
  • Homebuilding cash flow from operations of at least $1.0 billion
  • Outstanding share count at September 30, 2019 down slightly from
    September 30, 2018

Conference Call and Webcast Details

The Company will host a conference call today (Thursday, April 25) at
8:30 a.m. Eastern Time. The dial-in number is 877-407-8033, and the call
will also be webcast from the Company's website at investor.drhorton.com.

About D.R. Horton, Inc.

D.R. Horton, Inc., America's
Builder
, has been the largest homebuilder by volume in the United
States since 2002. Founded in 1978 in Fort Worth, Texas, D.R. Horton has
operations in 84 markets in 29 states across the United States and
closed 53,768 homes in the twelve-month period ended March 31, 2019. The
Company is engaged in the construction and sale of high-quality homes
through its diverse brand portfolio that includes D.R. Horton, Emerald
Homes
, Express
Homes
and Freedom
Homes
with sales prices ranging from $100,000 to over $1,000,000.
D.R. Horton also provides mortgage
financing
, title
services
and insurance
agency services
for homebuyers through its mortgage, title and
insurance subsidiaries.

Forward-Looking Statements

Portions of this document may constitute "forward-looking statements" as
defined by the Private Securities Litigation Reform Act of 1995.
Although D.R. Horton believes any such statements are based on
reasonable assumptions, there is no assurance that actual outcomes will
not be materially different. All forward-looking statements are based
upon information available to D.R. Horton on the date this release was
issued. D.R. Horton does not undertake any obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. Forward-looking statements in
this release include that our continued strategic focus is to
consolidate market share while growing our revenues and profits,
generating strong annual cash flows and returns and maintaining a
flexible financial position and that with 32,100 homes in inventory at
the end of March and 316,400 lots owned and controlled, we are
well-positioned for the remainder of fiscal 2019 and future years. The
forward-looking statements also include all metrics in the Guidance
section of this release.

Factors that may cause the actual results to be materially different
from the future results expressed by the forward-looking statements
include, but are not limited to: the cyclical nature of the homebuilding
industry and changes in economic, real estate and other conditions;
constriction of the credit and public capital markets, which could limit
our ability to access capital and increase our costs of capital;
reductions in the availability of mortgage financing provided by
government agencies, changes in government financing programs, a
decrease in our ability to sell mortgage loans on attractive terms or an
increase in mortgage interest rates; the risks associated with our land
and lot inventory; our ability to effect our growth strategies,
acquisitions or investments successfully; the impact of an inflationary,
deflationary or higher interest rate environment; home warranty and
construction defect claims; the effects of health and safety incidents;
the effects of negative publicity; supply shortages and other risks of
acquiring land, building materials and skilled labor; reductions in the
availability of performance bonds; increases in the costs of owning a
home; the effects of governmental regulations and environmental matters
on our homebuilding and land development operations; the effects of
governmental regulations on our financial services operations; our
significant debt and our ability to comply with related debt covenants,
restrictions and limitations; competitive conditions within the
homebuilding and financial services industries; the effects of the loss
of key personnel; and information technology failures and data security
breaches. Additional information about issues that could lead to
material changes in performance is contained in D.R. Horton's annual
report on Form 10-K and our most recent quarterly report on Form 10-Q,
both of which are filed with the Securities and Exchange Commission
(SEC).

       
 
D.R. HORTON, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
 
March 31,
2019
September 30,
2018
(In millions)
ASSETS
Cash and cash equivalents $ 698.8 $ 1,473.1
Restricted cash   32.4     32.9  
Total cash, cash equivalents and restricted cash 731.2 1,506.0
Inventories:
Construction in progress and finished homes 6,087.6 5,086.3

Residential land and lots — developed, under development, held for
development and held for sale

  5,832.7     5,308.7  
Total inventory 11,920.3 10,395.0
Mortgage loans held for sale 796.5 796.4

Deferred income taxes, net of valuation allowance of $17.0 million
and $17.7 million at March 31, 2019 and September 30, 2018,
respectively

171.9 194.0
Property and equipment, net 437.9 401.1
Other assets 785.7 712.9
Goodwill   163.5     109.2  
Total assets $ 15,007.0   $ 14,114.6  
LIABILITIES
Accounts payable $ 658.5 $ 624.7
Accrued expenses and other liabilities 1,192.1 1,127.5
Notes payable   3,622.4     3,203.5  
Total liabilities   5,473.0     4,955.7  
 
EQUITY

Common stock, $.01 par value, 1,000,000,000 shares authorized,
391,091,572 shares issued and 373,132,964 shares outstanding at
March 31, 2019 and 388,120,243 shares issued and 376,261,635
shares outstanding at September 30, 2018

3.9 3.9
Additional paid-in capital 3,123.4 3,085.0
Retained earnings 6,771.6 6,217.9

Treasury stock, 17,958,608 shares and 11,858,608 shares at March
31, 2019 and September 30, 2018, respectively, at cost

  (538.6 )   (322.4 )
Stockholders' equity 9,360.3 8,984.4
Noncontrolling interests   173.7     174.5  
Total equity   9,534.0     9,158.9  
Total liabilities and equity $ 15,007.0   $ 14,114.6  
 
         
D.R. HORTON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
Three Months Ended
March 31,
Six Months Ended
March 31,
2019     2018 2019     2018
(In millions, except per share data)
Revenues $ 4,128.7 $ 3,794.7 $ 7,647.7 $ 7,127.6
Cost of sales 3,256.7 2,961.6 6,007.8 5,541.8
Selling, general and administrative expense 444.2 400.9 847.0 785.1
Gain on sale of assets (29.3 ) (1.1 ) (31.3 ) (14.5 )
Other (income) expense   (5.7 )   (11.5 )   (14.3 )   (20.9 )
Income before income taxes 462.8 444.8 838.5 836.1
Income tax expense   108.4     94.0     197.4     296.4  
Net income 354.4 350.8 641.1 539.7
Net income (loss) attributable to noncontrolling interests   3.1     (0.2 )   2.7     (0.6 )
Net income attributable to D.R. Horton, Inc. $ 351.3   $ 351.0   $ 638.4   $ 540.3  
Basic:
Net income per common share attributable to D.R. Horton, Inc. $ 0.94   $ 0.93   $ 1.71   $ 1.44  
Weighted average number of common shares   373.3     376.8     374.2     376.3  
Diluted:
Net income per common share attributable to D.R. Horton, Inc. $ 0.93   $ 0.91   $ 1.68   $ 1.41  
Adjusted weighted average number of common shares   377.7     383.9     378.9     383.8  
Other Consolidated Financial Data:
Interest charged to cost of sales $ 29.9   $ 32.0   $ 55.5   $ 60.6  
Depreciation and amortization $ 17.2   $ 16.9   $ 34.1   $ 33.1  
Interest incurred $ 35.0   $ 31.8   $ 66.7   $ 62.8  
 
   
D.R. HORTON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 
Six Months Ended
March 31,
2019     2018
(In millions)
OPERATING ACTIVITIES
Net income $ 641.1 $ 539.7
Adjustments to reconcile net income to net cash used in operating
activities:
Depreciation and amortization 34.1 33.1
Amortization of discounts and fees 5.1 2.4
Stock-based compensation expense 35.9 31.0
Equity in earnings of unconsolidated entities (0.5 ) (2.7 )
Distributions of earnings of unconsolidated entities 0.5 0.2
Deferred income taxes 12.6 145.0
Inventory and land option charges 21.8 33.8
Gain on sale of assets (31.3 ) (14.5 )
Changes in operating assets and liabilities:
Increase in construction in progress and finished homes (755.2 ) (514.5 )

Increase in residential land and lots – developed, under
development, held for development and held for sale

(445.6 ) (271.5 )
(Increase) decrease in other assets (39.9 ) 4.4
Increase in mortgage loans held for sale (70.7 )
Increase (decrease) in accounts payable, accrued expenses and other
liabilities
  59.7     (14.5 )
Net cash used in operating activities   (461.7 )   (98.8 )
INVESTING ACTIVITIES
Expenditures for property and equipment (69.8 ) (39.5 )
Proceeds from sale of assets 83.8 253.4
Expenditures related to multi-family rental properties (28.3 ) (39.5 )
Return of investment in unconsolidated entities 4.4 15.1
Net principal increase of other mortgage loans and real estate owned (1.6 )
Payments related to business acquisitions, net of cash acquired   (309.6 )   (158.1 )
Net cash (used in) provided by investing activities   (321.1 )   31.4  
FINANCING ACTIVITIES
Proceeds from notes payable 1,815.0 1,913.6
Repayment of notes payable (1,531.0 ) (1,752.5 )
Advances on mortgage repurchase facility, net 53.0 69.8
Proceeds from stock associated with certain employee benefit plans 22.3 32.7
Cash paid for shares withheld for taxes (19.5 ) (10.3 )
Cash dividends paid (111.9 ) (94.1 )
Repurchases of common stock (216.2 ) (47.9 )
Distributions to noncontrolling interests, net   (3.7 )   (2.0 )
Net cash provided by financing activities   8.0     109.3  
Net (decrease) increase in cash, cash equivalents and restricted cash (774.8 ) 41.9
Cash, cash equivalents and restricted cash at beginning of period   1,506.0     1,024.3  
Cash, cash equivalents and restricted cash at end of period $ 731.2   $ 1,066.2  
   
D.R. HORTON, INC.
SEGMENT INFORMATION
(UNAUDITED)
 
March 31, 2019
Homebuilding     Forestar (1)     Financial Services     Other (2)     Eliminations (3)     Other Adjustments (4)     Consolidated
(In millions)
Assets
Cash and cash equivalents $ 557.3 $ 66.4 $ 61.1 $ 14.0 $ $ $ 698.8
Restricted cash 9.4 15.7 7.3 32.4
Inventories:

Construction in progress and finished homes

6,086.1 1.5 6,087.6

Residential land and lots — developed, under development, held for
development and held for sale

  4,990.7     851.5             (22.1 )   12.6     5,832.7
11,076.8 851.5 (20.6 ) 12.6 11,920.3
Mortgage loans held for sale 796.5 796.5
Deferred income taxes, net 155.0 22.9 1.5 (7.5 ) 171.9
Property and equipment, net 220.2 2.4 3.4 211.9 437.9
Other assets 732.8 26.0 52.1 37.4 (75.2 ) 12.6 785.7
Goodwill   134.3                     29.2     163.5
$ 12,885.8   $ 984.9   $ 920.4   $ 263.3   $ (94.3 ) $ 46.9   $ 15,007.0
Liabilities
Accounts payable $ 631.7 $ 16.1 $ 9.4 $ 3.0 $ (1.7 ) $ $ 658.5
Accrued expenses and other liabilities 1,102.2 131.9 43.8 10.9 (83.3 ) (13.4 ) 1,192.1
Notes payable   2,777.2     149.2     690.7             5.3     3,622.4
$ 4,511.1   $ 297.2   $ 743.9   $ 13.9   $ (85.0 ) $ (8.1 ) $ 5,473.0
 
    September 30, 2018
Homebuilding     Forestar (1)     Financial Services     Other (2)     Eliminations (3)     Other Adjustments (4)     Consolidated
(In millions)
Assets
Cash and cash equivalents $ 1,111.8 $ 318.8 $ 33.7 $ 8.8 $ $ $ 1,473.1
Restricted cash 8.6 16.2 8.1 32.9
Inventories:

Construction in progress and finished homes

5,084.4 1.9 5,086.3

Residential land and lots — developed, under development, held for
development and held for sale

  4,790.7     498.0             (7.2 )   27.2     5,308.7
9,875.1 498.0 (5.3 ) 27.2 10,395.0
Mortgage loans held for sale 796.4 796.4
Deferred income taxes, net 176.5 26.9 1.1 (10.5 ) 194.0
Property and equipment, net 207.1 1.8 3.0 189.2 401.1
Other assets 673.7 31.4 43.6 0.9 (48.6 ) 11.9 712.9
Goodwill   80.0                     29.2     109.2
$ 12,132.8   $ 893.1   $ 884.8   $ 198.9   $ (52.8 ) $ 57.8   $ 14,114.6
Liabilities
Accounts payable $ 612.4 $ 11.2 $ 0.2 $ 4.2 $ (3.3 ) $ $ 624.7
Accrued expenses and other liabilities 1,041.3 95.7 41.9 9.9 (46.1 ) (15.2 ) 1,127.5
Notes payable   2,445.9     111.7     637.7             8.2     3,203.5
$ 4,099.6   $ 218.6   $ 679.8   $ 14.1   $ (49.4 ) $ (7.0 ) $ 4,955.7

_________________

(1)   Amounts are presented on Forestar's historical cost basis.
(2) Amounts represent the aggregate balances of certain subsidiaries
that are immaterial for separate reporting.
(3) Amounts represent the elimination of intercompany transactions and
the reclassification of Forestar interest expense to inventory.
(4) Amounts represent purchase accounting adjustments related to the
Forestar acquisition.
 
   
Three Months Ended March 31, 2019
Homebuilding     Forestar (1)     Financial Services     Other (2)     Eliminations (3)     Other Adjustments (4)     Consolidated
(In millions)
Revenues:
Home sales $ 3,980.5 $ $ $ $ $ $ 3,980.5
Land/lot sales and other 14.9 65.4 6.0 (39.7 ) 46.6
Financial services           101.6                 101.6  
  3,995.4     65.4     101.6     6.0     (39.7 )       4,128.7  
Cost of sales:
Home sales (5) 3,214.2 (0.7 ) 3,213.5
Land/lot sales and other 9.3 43.7 (31.8 ) 8.2 29.4
Inventory and land option charges   13.8                         13.8  
  3,237.3     43.7             (32.5 )   8.2     3,256.7  
Selling, general and administrative expense 359.3 6.2 71.3 7.3 0.1 444.2
Gain on sale of assets (29.3 ) (29.3 )
Other (income) expense   (1.6 )   (0.9 )   (3.7 )   0.5             (5.7 )
Income before income taxes $ 400.4   $ 16.4   $ 34.0   $ 27.5   $ (7.2 ) $ (8.3 ) $ 462.8  
 
    Six Months Ended March 31, 2019
Homebuilding     Forestar (1)     Financial Services     Other (2)     Eliminations (3)     Other Adjustments (4)     Consolidated
(In millions)
Revenues:
Home sales $ 7,391.2 $ $ $ $ $ $ 7,391.2
Land/lot sales and other 21.7 103.8 12.8 (68.7 ) 69.6
Financial services           186.9                 186.9  
  7,412.9     103.8     186.9     12.8     (68.7 )       7,647.7  
Cost of sales:
Home sales (5) 5,943.4 (1.7 ) 5,941.7
Land/lot sales and other 14.5 74.3 (56.3 ) 11.8 44.3
Inventory and land option charges   21.8                         21.8  
  5,979.7     74.3             (58.0 )   11.8     6,007.8  
Selling, general and administrative expense 683.9 11.9 137.0 13.9 0.3 847.0
Gain on sale of assets (2.0 ) (0.9 ) (29.3 ) 0.9 (31.3 )
Other (income) expense   (3.5 )   (2.8 )   (7.7 )   (0.3 )           (14.3 )
Income before income taxes $ 754.8   $ 21.3   $ 57.6   $ 28.5   $ (10.7 ) $ (13.0 ) $ 838.5  
Summary Cash Flow Information:
Cash (used in) provided by operating activities $ (215.9 ) $ (283.4 ) $ 48.8   $ (4.1 ) $ (2.7 ) $ (4.4 ) $ (461.7 )

_________________

(1)   Results are presented on Forestar's historical cost basis.
(2) Amounts represent the aggregate results of certain subsidiaries that
are immaterial for separate reporting.
(3) Amounts represent the elimination of intercompany transactions.
(4) Amounts represent purchase accounting adjustments related to the
Forestar acquisition.
(5) Amount in the Eliminations column represents the profit on lots sold
from Forestar to the homebuilding segment. Intercompany profit is
eliminated in the consolidated financial statements when Forestar
sells lots to the homebuilding segment and is recognized in the
consolidated financial statements when the homebuilding segment
closes homes on the lots to homebuyers.
 
   
Three Months Ended March 31, 2018
Homebuilding     Forestar (1)     Financial Services     Other (2)     Eliminations (3)     Other Adjustments (4)     Consolidated
(In millions)
Revenues:
Home sales $ 3,672.1 $ $ $ $ $ $ 3,672.1
Land/lot sales and other 13.6 22.6 (8.5 ) 27.7
Financial services           94.9                 94.9  
  3,685.7     22.6     94.9         (8.5 )       3,794.7  
Cost of sales:
Home sales 2,907.5 2,907.5
Land/lot sales and other 12.0 16.2 (6.7 ) 2.5 24.0
Inventory and land option charges   30.1                         30.1  
  2,949.6     16.2             (6.7 )   2.5     2,961.6  
Selling, general and administrative expense 322.7 5.6 66.7 5.8 0.1 400.9
Gain on sale of assets (2.7 ) 1.6 (1.1 )
Interest expense 2.1 (2.1 )
Other (income) expense   (2.6 )   (3.2 )   (3.2 )   (3.6 )       1.1     (11.5 )
Income (loss) before income taxes $ 416.0   $ 4.6   $ 31.4   $ (2.2 ) $ 0.3   $ (5.3 ) $ 444.8  
 
    Six Months Ended March 31, 2018
Homebuilding     Forestar (1)     Financial Services     Other (2)     Eliminations (3)     Other Adjustments (4)     Consolidated
(In millions)
Revenues:
Home sales $ 6,856.6 $ $ $ $ $ $ 6,856.6
Land/lot sales and other 50.0 53.5 (8.5 ) 95.0
Financial services           176.0                 176.0  
  6,906.6     53.5     176.0         (8.5 )       7,127.6  
Cost of sales:
Home sales 5,429.0 5,429.0
Land/lot sales and other 43.3 35.5 (6.7 ) 6.9 79.0
Inventory and land option charges   33.8                         33.8  
  5,506.1     35.5             (6.7 )   6.9     5,541.8  
Selling, general and administrative expense 627.5 19.1 128.4 9.8 0.3 785.1
Gain on sale of assets (13.4 ) (2.7 ) 1.6 (14.5 )
Interest expense 4.2 (4.2 )
Other (income) expense   (3.4 )   (11.3 )   (6.1 )   (6.5 )       6.4     (20.9 )
Income (loss) before income taxes $ 789.8   $ 8.7   $ 53.7   $ (3.3 ) $ 2.4   $ (15.2 ) $ 836.1  
Summary Cash Flow Information:
Cash provided by (used in) operating activities $ 90.7   $ (150.2 ) $ (30.7 ) $ (0.5 ) $   $ (8.1 ) $ (98.8 )
_________________
(1)   Results are presented on Forestar's historical cost basis and from
the date of acquisition in the six month period.
(2) Amounts represent the aggregate results of certain subsidiaries that
are immaterial for separate reporting.
(3) Amounts represent the elimination of intercompany transactions and
the reclassification of Forestar interest expense to inventory.
(4) Amounts represent purchase accounting adjustments related to the
Forestar acquisition.
 
 
D.R. HORTON, INC.
ORDERS, CLOSINGS AND BACKLOG
($s in millions)
 
NET SALES ORDERS
 
    Three Months Ended March 31,       Six Months Ended March 31,
2019     2018 2019     2018
Homes   Value Homes   Value Homes   Value Homes   Value
East 2,426 $ 693.1 1,991 $ 566.8 3,996 $ 1,138.0 3,421 $ 965.3
Midwest 1,036 361.3 790 306.5 1,568 558.2 1,167 451.5
Southeast 5,605 1,488.4 5,054 1,352.6 9,221 2,451.7 8,686 2,329.0
South Central 4,779 1,203.2 4,788 1,200.5 8,174 2,059.0 7,814 1,961.2
Southwest 797 206.2 889 211.7 1,327 341.1 1,590 376.8
West 2,162   989.8 2,316   1,103.4 3,561   1,619.2 3,903   1,880.3
16,805 $ 4,942.0 15,828 $ 4,741.5 27,847 $ 8,167.2 26,581 $ 7,964.1
 
 
HOMES CLOSED
 
Three Months Ended March 31, Six Months Ended March 31,
2019 2018 2019 2018
Homes Value Homes Value Homes Value Homes Value
East 1,791 $ 518.0 1,531 $ 435.4 3,349 $ 963.9 2,919 $ 828.4
Midwest 701 246.4 514 203.6 1,372 491.2 922 365.0
Southeast 4,527 1,196.1 3,935 1,041.0 8,310 2,209.5 7,679 2,029.7
South Central 3,942 986.9 3,636 913.3 7,420 1,859.3 6,814 1,721.6
Southwest 681 173.2 713 168.8 1,242 316.8 1,405 324.6
West 1,838   859.9 1,952   910.0 3,287   1,550.5 3,330   1,587.3
13,480 $ 3,980.5 12,281 $ 3,672.1 24,980 $ 7,391.2 23,069 $ 6,856.6
 
 
SALES ORDER BACKLOG
 
As of March 31,
2019 2018
Homes Value Homes Value
East 2,550 $ 744.1 2,046 $ 589.7
Midwest 1,228 417.7 664 258.9
Southeast 5,132 1,414.5 5,064 1,404.2
South Central 5,246 1,351.5 4,956 1,257.8
Southwest 1,013 275.9 1,028 244.8
West 1,721   794.0 2,083   1,078.1
16,890 $ 4,997.7 15,841 $ 4,833.5
 

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