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ANNUAL REPORT - 2019 - Investor Relations – D.R. Horton /media/Files/D/D-R-Horton... · PDF file 2019. 12. 19. · (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

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  • A N N U A L R E P O RT - 2 0 1 9 -

  • Balance Sheet: Cash and cash equivalents ......................................... $ 1,494.3 $ 1,473.1 $ 1,007.8 $ 1,303.2 $ 1,383.8 Inventories ............................................................... 11,282.0 10,395.0 9,237.1 8,340.9 7,807.0 Total assets .............................................................. 15,606.6 14,114.6 12,184.6 11,558.9 11,151.0 Notes payable .......................................................... 3,399.4 3,203.5 2,871.6 3,271.3 3,811.5 Stockholders’ equity ................................................ 10,020.9 8,984.4 7,747.1 6,792.5 5,894.3 Book value per common share ............................... 27.20 23.88 20.66 18.21 15.99 Common shares outstanding .................................. 368.4 376.3 375.0 372.9 368.6 Income Statement and Cash Flow: Revenues .................................................................. $17,592.9 $ 16,068.0 $ 14,091.0 $ 12,157.4 $ 10,824.0 Income before income taxes ................................... 2,125.3 2,060.0 1,602.1 1,353.5 1,123.4

    ......... 1,618.5 1,460.3 1,038.4 886.3 750.7

    ......................... 4.29 3.81 2.74 2.36 2.03 .................................... 892.1 545.2 440.2 623.9 706.4

    Percentages of Revenues: Income before income taxes ................................... 12.1% 12.8% 11.4% 11.1% 10.4%

    ......... 9.2% 9.1% 7.4% 7.3% 6.9% Homebuilding Operations: Homebuilding return on inventory(1) ...................... 18.1% 20.2% 16.6% 15.4% 12.8% Homes closed ............................................................ 56,975 51,857 45,751 40,309 36,648 Homes in inventory .................................................... 27,700 27,900 24,600 21,500 18,200 Land/lots owned ....................................................... 121,400 124,300 125,000 112,900 118,400 Lots controlled under purchase contracts ................. 185,900 164,200 124,000 91,600 55,500

    Percentages of Revenues: ........................................ 20.2% 21.3% 20.0% 20.2% 19.8%

    SG&A expense - homebuilding ................................ 8.7% 8.6% 8.9% 9.3% 9.5%

    2018 2017 20162019 2015 As of and for the Year Ended September 30,

    FINANCIAL SUMMARY (In millions, except for number of homes, lots and per share amounts)

    (1) Homebuilding return on inventory is calculated as homebuilding pre-tax income for the year divided by average homebuilding inventory. Average

    $12,000

    $8,000

    $4,000

    $0

    40%

    20%

    30%

    10%

    0%

    25%

    20%

    15%

    10%

    5%

    0%

    $20.00

    $10.00

    $0 2015

    $15.99

    2017

    $20.66

    2016

    $18.21

    $23.88

    2018 2015

    36%

    2017

    24% 21%

    2016

    29%

    2015

    13%

    2017

    17% 20%

    2016

    15%

    2018

    2018

    $20,000

    $15,000

    $10,000

    $5,000

    $0

    $2,500

    $1,000

    $500

    $0

    $1,500

    $2,000

    2015 20172016

    $5,894 $6,793

    $7,747

    2018

    $8,984

    2015 2016

    $1,123

    2018

    $1,602

    $2,060

    2017

    $1,354

    2015 2016

    $10,824

    2018

    $16,068

    2017

    $12,157 $14,091

    $27.20

    2019

    17%

    18%

    2019

    2019

    2019

    $10,021

    2019

    $2,125

    2019

    $17,593

    $30.00

  • Dear Fellow Shareholders:

    The D.R. Horton team delivered an outstanding year in fiscal 2019. Our results reflect the strength of our experienced operational teams, industry-leading market share, broad geographic footprint and affordable product offerings across multiple brands. We closed 56,975 homes in fiscal 2019, completing our 18th consecutive year as the largest homebuilder in the United States. Over the last five years, we have grown our revenues by 119% and our earnings per share by 186%, while also generating $4.0 billion of cash flows from homebuilding operations, significantly increasing returns on inventory and equity and reducing our debt.

    Our financial achievements during fiscal 2019 included the following:

    • Increased total revenues by 9%;

    • Increased consolidated pre-tax income by 3% to $2.1 billion, with a pre-tax profit margin of 12.1%;

    • Increased net income attributable to D.R. Horton by 11% to $1.6 billion or $4.29 per diluted share;

    • Homebuilding return on inventory was 18.1% and return on equity was 17.2%;

    • Generated $1.4 billion of homebuilding cash from operations;

    • Improved homebuilding debt to total capital by 440 basis points to 17.0%;

    • Increased stockholders’ equity to $10.0 billion, up 12% from $9.0 billion a year ago; and

    • Increased book value per share to $27.20, up 14% from a year ago.

    • Paid cash dividends of $223.4 million and repurchased 11.9 million shares of common stock for $479.8 million.

    The key to our performance is a consistent focus on the fundamentals of our business in each of our communities across the 90 markets in which we operate. Our operational teams in each market are responsible for building quality homes, ensuring our product offerings and pricing align with customer demand in each community, and serving our customers with excellence. Our local teams strive to manage our business in each market to achieve an optimal balance of sales pace, pricing, profit margins and inventory levels in each community to maximize the returns on our inventory investments. We are focused on providing compelling value to our customers by offering quality homes at affordable price points across our entire family of brands and being the leading builder in each of our operating markets.

    We are well-positioned for fiscal 2020 with our broad geographic footprint, diverse product offerings, strong balance sheet and liquidity and our experienced personnel across our operating markets. Our continued strategic focus is to grow our revenues and profits and consolidate market share, while generating strong annual operating cash flows and returns. Our employees are the best in the industry, and their dedication and daily efforts are driving our success. We thank all of our suppliers, subcontractors, land developers, real estate agents and lenders for their valuable relationships. Finally, we appreciate our shareholders for your consistent support, as we strive to validate your trust by delivering sustainable value, addressing future challenges directly and maintaining our position as the leader in the homebuilding industry.

    Donald R. Horton Chairman of the Board

  • UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

    _______________________________________________________________________________________________________________

    FORM 10-K (Mark One)

    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

    For the Fiscal Year Ended September 30, 2019 or

    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

    For the Transition Period From To

    Commission file number 1-14122 ___________________________________________________________________________________________________________________

    D.R. Horton, Inc. (Exact name of registrant as specified in its charter)

    Delaware 75-2386963 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)

    1341 Horton Circle Arlington, Texas 76011

    (Address of principal executive offices) (Zip code)

    (817) 390-8200 (Registrant’s telephone number, including area code)

    Securities registered pursuant to Section 12(b) of the Act:

    Title of Each Class Trading Symbol Name of Each Exchange on Which Registered Common Stock, par value $.01 per share DHI New York Stock Exchange

    5.750% Senior Notes due 2023 DHI 23A New York Stock Exchange

    Securities registered pursuant to Section 12(g) of the Act: None

    Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No

    Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No

    Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

    Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

    Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

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