D.R. Horton(US:DHI)2024-07-18 17:49Earnings and Profitability - Earnings per diluted share increased 5% to $4.10 on net income of $1.4 billion[1] - Homebuilding pre-tax income increased 7% to $1.6 billion with a pre-tax profit margin of 17.0%[8] - Net income for the nine months ended June 30, 2024, was $3,506.2 million, compared to $3,269.7 million for the same period in 2023[26] - Basic net income per common share for the nine months ended June 30, 2024, was $10.50, up from $9.46 for the same period in 2023[26] - Consolidated income before income taxes for Q2 2024 was $1.80 billion, slightly up from $1.78 billion in Q2 2023[29][30] Revenue Growth - Consolidated revenues increased 2% to $10.0 billion[1] - Revenues for the three months ended June 30, 2024, were $9,965.7 million, compared to $9,725.6 million for the same period in 2023[26] - Home sales revenue for Q2 2024 reached $9.23 billion, up from $8.70 billion in Q2 2023, reflecting a 6.1% year-over-year growth[29][30] - Financial services revenue increased to $242.3 million in Q2 2024 from $228.5 million in Q2 2023, a 6% year-over-year growth[29][30] - Consolidated revenues guidance for fiscal 2024 updated to approximately $36.8 billion to $37.2 billion[19] Home Sales and Closings - Homes closed increased 5% to 24,155 homes and 6% in value to $9.2 billion[1] - Net sales orders increased 1% to 23,001 homes and were flat in value at $8.7 billion[1] - Net sales orders for the nine months ended June 2024 totaled 67,526 homes valued at $25.57 billion, up from 59,403 homes valued at $22.27 billion in the same period of 2023[33] - Total homes closed across all regions reached 24,155 units in Q2 2024, up 5.1% from 22,985 units in Q2 2023, with a total value of $9.23 billion, up 6.1% from $8.70 billion[34] - Homes closed in the Northwest region increased to 1,427 units in Q2 2024, up 18% from 1,209 units in Q2 2023, with a total value of $720.7 million, up 10.3% from $653.6 million[34] - Southwest region homes closed rose to 2,673 units in Q2 2024, a 15.4% increase from 2,316 units in Q2 2023, with a total value of $1.31 billion, up 17.3% from $1.12 billion[34] - South Central region homes closed decreased to 6,104 units in Q2 2024, down 5.8% from 6,477 units in Q2 2023, with a total value of $2.01 billion, down 7.4% from $2.17 billion[34] - Southeast region homes closed increased to 6,669 units in Q2 2024, up 2.2% from 6,616 units in Q2 2023, with a total value of $2.42 billion, up 1.3% from $2.38 billion[34] Rental Operations - Rental operations pre-tax income of $64.2 million on $413.7 million of revenues[1] - Rental property sales revenue grew to $413.7 million in Q2 2024, compared to $667.1 million in Q2 2023, indicating a 38% decline[29][30] Share Repurchases and Liquidity - Repurchased 3.0 million shares of common stock for $441.4 million[1] - New share repurchase authorization of $4.0 billion[1] - Consolidated cash balance at June 30, 2024 was $3.0 billion with total liquidity of $5.8 billion[3] - The company's Board of Directors approved a new share repurchase authorization totaling $4.0 billion[22] Cash Flow and Financial Position - Total cash, cash equivalents, and restricted cash decreased to $3,020.0 million as of June 30, 2024, compared to $3,900.1 million as of September 30, 2023[25] - Net cash provided by operating activities for the nine months ended June 30, 2024, was $228.2 million, compared to $2,261.1 million for the same period in 2023[27] - Net cash used in financing activities for the nine months ended June 30, 2024, was $947.2 million, compared to $1,117.5 million for the same period in 2023[27] - Cash provided by operating activities for the nine months ended June 2024 was $228.2 million, a significant decrease from $2.26 billion in the same period of 2023[29][30] Inventory and Land Development - Total inventory increased to $25,536.1 million as of June 30, 2024, up from $22,373.3 million as of September 30, 2023[25] - Inventory and land option charges increased to $14.8 million in Q2 2024 from $10.8 million in Q2 2023, reflecting higher costs in land development[29][30] - Total land/lots owned and controlled in the Southwest region increased to 49,600 in June 2024, up 6.6% from 46,500 in September 2023[39] - South Central region land/lots owned and controlled rose to 146,500 in June 2024, up 37.9% from 106,200 in September 2023[39] - Southeast region land/lots owned and controlled increased to 167,600 in June 2024, up 6.3% from 157,600 in September 2023[39] - Homes in inventory in the East region increased to 8,300 units in June 2024, up 16.9% from 7,100 units in September 2023[40] - Total homes in inventory across all regions reached 42,600 units in June 2024, up 1.4% from 42,000 units in September 2023[40] Regional Performance - The Southeast region contributed the highest home sales value at $2.17 billion in Q2 2024, maintaining a strong market presence[33] - The South Central region recorded the highest number of net sales orders at 17,733 homes for the nine months ended June 2024, up from 15,905 homes in 2023[33] - Consolidated assets increased from $32.58 billion in September 2023 to $35.15 billion in June 2024, driven by growth in homebuilding and rental segments[28] Cost Management - Cost of sales for the three months ended June 30, 2024, was $7,323.7 million, compared to $7,141.8 million for the same period in 2023[26] - Selling, general, and administrative expenses for the three months ended June 30, 2024, were $923.6 million, compared to $852.1 million for the same period in 2023[26]