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Q1 FY2016

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Q1 FY2016

3Q1 FY2016

This presentation may include “forward-looking statements” as defined by the Private Securities LitigationReform Act of 1995. Although D.R. Horton believes any such statements are based on reasonableassumptions, there is no assurance that actual outcomes will not be materially different. Factors that maycause the actual results to be materially different from the future results expressed by the forward-lookingstatements include, but are not limited to: the cyclical nature of the homebuilding industry and changes ineconomic, real estate and other conditions; constriction of the credit markets, which could limit our abilityto access capital and increase our costs of capital; reductions in the availability of mortgage financing andthe liquidity provided by government-sponsored enterprises, the effects of government programs, adecrease 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; home warranty and construction defect claims; supplyshortages and other risks of acquiring land, building materials and skilled labor; reductions in theavailability of performance bonds; increases in the costs of owning a home; the impact of an inflationary,deflationary or higher interest rate environment; the effects of governmental regulations and environmentalmatters on our homebuilding operations; the effects of governmental regulations on our financial servicesoperations; our substantial debt and our ability to comply with related debt covenants, restrictions andlimitations; competitive conditions within the homebuilding and financial services industries; our ability toeffect our growth strategies or acquisitions successfully; the effects of the loss of key personnel; the effectsof negative publicity; and information technology failures and data security breaches. Additionalinformation about issues that could lead to material changes in performance is contained in D.R. Horton’sannual report on Form 10-K and our most recent quarterly report on Form 10-Q, both of which are filedwith the Securities and Exchange Commission.

Forward-Looking Statements

4Q1 FY2016

Traded on NYSE as DHI

#1 builder for 14 consecutive years1

$10.9 billion in annual revenues2

36,736 in annual homes closed2

$1.1 billion in annual pre-tax income2

$11.2 billion of total assets3

$6.1 billion of stockholders’ equity3

Book value per share of $16.393

1By closings volume for fiscal years 2002 to 20152Twelve months ended December 31, 20153As of December 31, 2015

D.R. Horton, Inc.

5Q1 FY2016

Geographic DiversificationHB Revenue1

Region States Covered

East Delaware, Georgia, Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina, Virginia

Midwest Colorado, Illinois, Indiana, Minnesota

Southeast Alabama, Florida, Georgia, Mississippi, Tennessee

South Central Louisiana, Oklahoma, Texas

Southwest Arizona, New Mexico

West California, Hawaii, Nevada, Oregon, Utah, Washington

Inventory2

South Central

26%

Southwest3%

West24%

East13%

Midwest6%

Southeast28%

Midwest6%

South Central

26%

Southeast25%

East10%

West29%

Southwest4%

79 Markets | 27 States

1Twelve months ended December 31, 20152As of December 31, 2015

6Q1 FY2016

$200k to $250k

$250k to $300k

$300k to $500k

27%

24% 18%

24%

Broad Range of Product Offerings

Homes for entry-level, move-up and luxury buyers

$0 to $200k

$500k+

Represents homes closed for the trailing twelve months ended 12/31/15

7%

7Q1 FY2016

74%

22%

4%

Substantial Growth in Brands

New Brand Growth - TTM

1,960

6,623

580

1,163

0

2,500

5,000

7,500

10,000

TTM 12/31/14 TTM 12/31/15

Overall Brand Mix – Q1

Represents homes closed

Homes Closed

8Q1 FY2016

Current land ownership level is sufficient to support double-digit annual growth in both revenues and profits

Consistently optimize balance of sales absorptions and gross margins to maximize returns in each community

Manage land and home inventory levels efficiently to generate consistent positive cash flow from operations

Underwriting criteria for land and lot purchases and operational expectations for each community: Minimum 20% annual net return on inventory investment

(ROI) for all brands Net ROI% = Pre-tax Income divided by Average Inventory

Initial cash investment returned within 24 months or less

Operational Focus

9Q1 FY2016

Average employee tenure: Region Presidents – over 20 years Division Presidents – 15 years City Managers – over 10 years

Management Tenure & Experience

10Q1 FY2016

Fiscal Year: Consolidated pre-tax margin in the range of 10.5% to 11.0% Consolidated revenues of $12.0 billion to $12.5 billion Closings between 39,500 and 41,500 homes Home sales gross margin in the high 19s to 20% Homebuilding SG&A expense in the range of 9.2% to 9.4% of homebuilding revenues Financial Services operating margin between 30% and 33% Income tax rate between 35% and 36% Diluted share count of approximately 375 million shares Cash flow from operations in the range of $300 million to $500 million

Second Quarter: Backlog conversion rate in the range of 82% to 85% Home sales gross margin in the high 19s to 20%, consistent with first quarter Homebuilding SG&A expense in the range of 10.3% to 10.6% of homebuilding revenues

FY 2016 Expectations*

*Based on housing market conditions as noted on the Company’s conference call on 1/25/16

11Q1 FY2016

Invest in homebuilding business where opportunities to generate acceptable returns exist, including business acquisitions

Pay off debt at maturity Paid $170 million of senior notes at maturity in

January 2016

$373 million maturities remaining in fiscal 2016 – most likely pay off some portion, while refinancing the rest

Be opportunistic, while remaining disciplined

Cash Flow Priorities

12Q1 FY2016

First Quarter Data

13Q1 FY2016

The value of net homes sold, homes closed and homes in backlog increased by 12%, 4% and 16%, respectively

8,064 net homes sold and 8,061 homes closed

10,665 homes in backlog at 12/31/15

Consolidated pre-tax income increased 9% to $241.3 million

Consolidated pre-tax income margin improved 40 basis points to 10%

Net income increased 11% to $157.7 million

Cash flow used in operations improved $127.5 million to $1.5 million

Q1 FY 2016 Highlights

14Q1 FY2016

In the first quarter, accounted for:

71% of homes sold

74% of homes closed

77% of home sales revenue

Q1 Average Closing Price: $302,000

D.R. Horton

The Heart of our Business

Reported metrics for D.R. Horton include our Crown Communities and Pacific Ridge Homes operations

79 Markets | 27 States

15Q1 FY2016

Introduced in 2013

In the first quarter, accounted for:

4% of homes sold

4% of homes closed

8% of home sales revenue

Q1 Average Closing Price: $592,000

Emerald Homes

Higher-end move-up and luxury buyer

44 Markets | 17 States

16Q1 FY2016

Introduced in Spring 2014

In the first quarter, accounted for: 25% of homes sold 22% of homes closed 15% of home sales revenue

Q1 Average Closing Price: $199,000

Express Homes

Targeted at the true entry-level buyer

Reported metrics for Express include our Regent Homes operations

48 Markets | 15 States

17Q1 FY2016

Sales, Closings & Backlog – Q1 FY16

Net Sales Orders, Homes Closed and Homes in Backlog increased 9%, 1% and 15%, respectively, in Q1 of FY2016 compared to Q1 of FY2015

0

2,000

4,000

6,000

8,000

10,000

12,000

Sales Closings Backlog

1Q FY14 1Q FY15 1Q FY16

18Q1 FY2016

Income Statement

$ in millions

12/31/2015 12/31/2014 9/30/2015 9/30/2014

Homes closed 8,061 7,973 36,648 28,670

Revenues:Home sales 2,340.9$ 2,240.7$ 10,469.4$ 7,804.7$ Land/lot sales & other 20.2 12.3 89.6 53.8

2,361.1 2,253.0 10,559.0 7,858.5 Gross Profit:

Home sales 466.6 442.6 2,075.8 1,665.6 Land/lot sales & other 4.3 2.0 7.8 9.5 Inventory & land option charges (2.0) (6.0) (60.3) (85.2)

468.9 438.6 2,023.3 1,589.9 SG&A 243.3 238.0 1,013.6 834.2 Goodwill Impairment - - 9.8 - Interest and other (income) (3.4) (5.5) (18.4) (13.1) Homebuilding pre-tax income 229.0 206.1 1,018.3 768.8 Financial Services pre-tax income 12.3 14.6 105.1 45.4 Pre-tax income 241.3 220.7 1,123.4 814.2 Income tax expense 83.6 78.2 372.7 280.7 Net income 157.7$ 142.5$ 750.7$ 533.5$

3 Months Ended Fiscal Year Ended

19Q1 FY2016

Home Sales Gross Margin

Homes sales gross margin of around 20% in a stable housing market

0%

5%

10%

15%

20%

25%

FY12 FY13 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16

17.7%

20.8% 21.3%19.8% 19.7% 19.9% 19.9% 19.9%

Shown as a % of home sales revenuesIncludes interest amortized to cost of sales

20Q1 FY2016

Homebuilding SG&A

SG&A as a percentage of homebuilding revenues improved 30 basis points in Q1 FY2016

Fiscal Year 2015

$0

$200

$400

$600

$800

$1,000

$1,200

2014 2015

$834.2 $1,013.6

10.6%

9.6%

$0

$200

$400

$600

$800

$1,000

$1,200

Q1 FY15 Q1 FY16

$238.0 $243.3

10.3%

SG&A $SG&A $

10.6%

Shown as a % of homebuilding revenues$ in millions

First Fiscal Quarter 2016

21Q1 FY2016

Consolidated Pre-tax Income

Consolidated pre-tax income margin in Q1 FY2016 improved 40 basis points to 10.0%

Fiscal Year 2015 First Fiscal Quarter 2016

$0

$200

$400

$600

$800

$1,000

$1,200

2014 2015

$814.2

$1,123.4

10.1%

10.4%

$0

$200

$400

$600

$800

$1,000

$1,200

Q1 FY15 Q1 FY16

$220.7 $241.3

9.6% 10.0%

Shown as a % of consolidated revenues$ in millions

PTI $ PTI $

22Q1 FY2016

Balance Sheet

$ in millions

12/31/15 9/30/15 12/31/14

HB cash and cash equivalents 1,245.7$ 1,355.9$ 517.7$ Restricted cash 9.7 9.7 9.6 Inventories 8,088.2 7,807.0 7,989.3 Deferred income taxes, net 542.2 558.1 552.7 Other assets 1,293.7 1,420.3 1,269.4 Total 11,179.5$ 11,151.0$ 10,338.7$

Notes payable - HB 3,337.2$ 3,333.6$ 3,403.1$ Other liabilities 1,781.8 1,922.0 1,671.8 Equity 6,060.5 5,895.4 5,263.8 Total 11,179.5$ 11,151.0$ 10,338.7$

Homebuilding Leverage Gross 35.5% 36.1% 39.2% Net of cash 25.7% 25.1% 35.3%

Book Value/Share $16.39 $15.99 $14.40

23Q1 FY2016

Homes in Inventory

0

5,000

10,000

15,000

20,000

25,000

9/30/12 9/30/13 9/30/14 12/31/14 9/30/15 12/31/15

Models Sold Specs

17,000

13,000

21,30019,800

20,60021,500

24Q1 FY2016

Robust Lot Position

94,600 126,600 124,600 124,500 118,400 116,600

58,100 54,300 58,900 60,200 55,500 61,100

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

9/30/12 9/30/13 9/30/14 12/31/14 9/30/15 12/31/15

Optioned Owned

152,700

180,900 183,500 184,700173,900 177,700

Increased optioned lot position by 10% from 9/30/15 to 12/31/15

25Q1 FY2016

$ in millionsLand held for development is shown as separate line item on face of balance sheet

Inactive Land Held for Development

“Mothballed” lot count down 24% from 12/31/14

$628.3

$450.2

$332.8$304.3

$202.3 $185.4

39,400

21,700

14,000 13,90011,100 10,500

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

$0

$100

$200

$300

$400

$500

$600

$700

9/30/12 9/30/13 9/30/14 12/31/14 9/30/15 12/31/15

Balance

Lots Held

26Q1 FY2016

Public Debt Maturities by Year

$0

$100

$200

$300

$400

$500

$600

$700

$800

FY 16 FY 17 FY 18 FY 19 FY 20 FY 22 FY 23

4.750%

$350

$500

$373

$500

$350

$400

6.500% 4.750% 3.625% 3.750% 4.000% 4.375%

5.750%

$700

$ in millionsPro forma balance of public notes outstanding subsequent to 1/15/2016 debt maturity

As of January 25, 2016