[Fort Worth] – Nationwide homebuilder D.R. Horton Inc., whose latest Santa Clarita Valley community is Monument at West Hills, reported that net income for its first fiscal quarter ended December 31, 2015 increased 11 percent to $157.7 million, or $0.42 per diluted share, from $142.5 million, or $0.39 per diluted share, in the same quarter of fiscal 2015. Homebuilding revenue for the first quarter of fiscal 2016 increased 5 percent to $2.4 billion from $2.3 billion in the same quarter of fiscal 2015. Homes closed in the quarter increased 1 percent to 8,061 homes, compared to 7,973 homes in the prior year quarter.
Net sales orders for the first quarter ended December 31, 2015 increased 9 percent to 8,064 homes and 12 percent in value to $2.4 billion, compared to 7,370 homes and $2.1 billion in the prior year quarter. The Company’s cancellation rate (cancelled sales orders divided by gross sales orders) for the first quarter of fiscal 2016 was 23 percent. The Company’s sales order backlog of homes under contract at December 31, 2015 increased 15 percent to 10,665 homes and 16 percent in value to $3.2 billion, compared to 9,285 homes and $2.7 billion at December 31, 2014.
The Company ended the quarter with $1.2 billion of homebuilding unrestricted cash and gross homebuilding debt to total capital of 35.5 percent. Net homebuilding debt to total capital was 25.7 percent. Net homebuilding debt to total capital consists of homebuilding notes payable net of cash divided by total equity plus homebuilding notes payable net of cash.
The Company has declared a quarterly cash dividend of $0.08 per common share. The dividend is payable on February 17, 2016 to stockholders of record on February 5, 2016.
Donald R. Horton, Chairman of the Board, said, “The D.R. Horton team started the year with a strong first quarter, highlighted by $241.3 million of pre-tax income on $2.4 billion of revenues. Our pre-tax profit margin improved 40 basis points from the prior year quarter to 10.0 percent. The value of our net sales orders increased by 12 percent, our home sales revenue increased by 4 percent and the value of our sales order backlog increased by 16 percent.
“Solid performance in our three core brands is enabling us to capitalize on market opportunities and expand our industry-leading market share. With a sales backlog of 10,665 homes at the end of December, positive sales trends in January and a robust lot supply and inventory of homes available for sale, we are well-positioned for the spring selling season and fiscal 2016. We remain focused on growing our revenues and pre-tax profits at a double-digit annual pace, while generating positive cash flows and improved returns.”
About D.R. Horton
D.R. Horton, Inc., America’s Builder, has been the largest homebuilder by volume in the United States for fourteen consecutive years. Founded in 1978 in Fort Worth, Texas, D.R. Horton has operations in 79 markets in 27 states across the United States and closed 36,736 homes in the twelve-month period ended December 31, 2015. The Company is engaged in the construction and sale of high-quality homes through its diverse brand portfolio that includes D.R. Horton, Express Homes and Emerald Homes with sales prices ranging from $100,000 to over $1,000,000. D.R. Horton also provides mortgage financing and title services for homebuyers through its mortgage and title subsidiaries.