D.R. Horton(DHI) - 2024 Q2 - Quarterly Report

Homebuilding Performance - Homebuilding revenues increased 13% to $8.5 billion compared to$7.5 billion[143] - Homes closed increased 15% to 22,548 homes, while the average closing price decreased 1% to $375,500[143] - Net sales orders increased 14$10.1 billion[143] - Homebuilding revenues increased 11% to $15.8 billion compared to$14.2 billion[154] - Homes closed increased 13% to 41,888 homes, while the average closing price decreased 2% to $375,800[154] - Net sales orders increased 22$16.9 billion[154] - Home sales revenue for the three months ended March 31, 2024, was $8.5 billion, a 15$7.4 billion in the prior year period, with 22,548 homes closed compared to 19,664 homes closed previously[174] - Homebuilding revenues in the Southwest region increased by 39% for the three months ended March 31, 2024, primarily due to increases in the number of homes closed[193] - The number of homes closed increased by 15% for the three months ended March 31, 2024, with growth observed in all regions[174] - Homebuilding revenues in the East Region increased by 19% and 15% for the three and six months ended March 31, 2024, respectively, with pre-tax income of $254.5 million and$459.1 million[197] - In the North Region, homebuilding revenues rose by 16% and 15% for the three and six months ended March 31, 2024, respectively, generating pre-tax income of $114.7 million and$200.8 million[198] Financial Performance - Consolidated revenues increased 14% to $9.1 billion compared to$8.0 billion[150] - Net income attributable to D.R. Horton increased 24% to $1.2 billion compared to$942.2 million[150] - Net income attributable to D.R. Horton increased 11% to $2.1 billion, with diluted net income per share up 15$6.34[158] - Pre-tax income for the three months ended March 31, 2024, was $1.5 billion, an increase from$1.2 billion in the prior year, representing a 25% growth[222] - Income tax expense for the three months ended March 31, 2024, was $344.8 million, compared to$295.7 million in the prior year, reflecting a 16.6% increase[223] - Net income for the six months ended March 31, 2024, was $1,883.0 million, down from$3,984.2 million for the year ended September 30, 2023, reflecting a decrease of about 52.8%[262] Profitability Metrics - Homebuilding pre-tax income was $1.4 billion compared to$1.1 billion, with a pre-tax margin of 16.0%[143] - Gross profit from home sales increased to $2.0 billion in the three months ended March 31, 2024, with a gross profit margin of 23.2$2.5 billion, representing a 13% increase from 2.2 billion in the prior year[190] - Selling, general and administrative (SG&A) expenses increased by 13% to 614.1 million for the three months ended March 31, 2024, and by 14% to $1.2 billion for the six months ended March 31, 2024[184] Rental and Financial Services - Rental revenues increased 66$371.3 million compared to $224.1 million[144] - Financial services revenues increased 18$418.2 million, with pre-tax income up 39% to $144.0 million[157] - Forestar's pre-tax income increased 64$58.9 million compared to $35.9 million[147] - Total rental revenues increased to$371.3 million and $566.5 million during the three and six months ended March 31, 2024, respectively, compared to$224.1 million and $551.6 million in the prior year periods[205] Inventory and Land Management - Approximately 27,600 homes in inventory were unsold at March 31, 2024, with 7,300 of those homes completed[204] - The company managed its inventory of owned land and lots relative to demand, actively controlling the number of unsold, completed homes[201] - The total remaining purchase price of lots controlled through land and lot purchase contracts was$23.1 billion at March 31, 2024, compared to $21.1 billion at September 30, 2023[204] - As of March 31, 2024, the company had$8.8 million of land held for sale, expected to be sold within the next twelve months[181] Debt and Cash Management - Cash and cash equivalents for the homebuilding segment totaled $2.2 billion at March 31, 2024[230] - The ratio of debt to total capital was 20.0$2.1 billion principal amount of homebuilding senior notes outstanding, maturing from October 2024 through October 2027[233] - Cash decreased to $2,115.6 million as of March 31, 2024, from$2,848.3 million as of September 30, 2023, a decline of about 25.7%[261] Risk Management and Compliance - The company has not experienced any significant changes in its internal controls over financial reporting during the quarter ended March 31, 2024[277] - The company is involved in lawsuits and contingencies but does not expect these to have a material adverse effect on its financial position[280] - A Consent Decree related to stormwater compliance was issued on April 8, 2024, with costs not expected to exceed $1 million[281] - The company manages interest rate risk through forward sales of mortgage-backed securities, which are classified as hedging instruments[271]