On November 7, 2023, D.R. Horton Inc (DHI, Financial), America's Builder, disclosed its financial results for the fourth quarter and fiscal year ended September 30, 2023. The company reported a robust net income of $1.5 billion or $4.45 per diluted share for the quarter, although this was a slight decrease from $1.6 billion or $4.67 per diluted share in the same quarter of the previous fiscal year. For the entire fiscal year, D.R. Horton Inc (DHI) saw a net income of $4.7 billion or $13.82 per diluted share, a 16% decrease in earnings per share compared to the prior year.
Financial Performance Overview
The company's consolidated revenues for the fourth quarter increased by 9% to $10.5 billion, compared to $9.6 billion in the same quarter of the previous fiscal year. The full fiscal year's consolidated revenues also saw an increase of 6%, totaling $35.5 billion. D.R. Horton Inc (DHI, Financial) experienced a significant increase in net sales orders, which rose by 39% to 18,939 homes and by 34% in value to $7.3 billion in the fourth quarter. The company's cash flow from operations was notably strong at $4.3 billion, compared to $561.8 million in the previous fiscal year.
Balance Sheet and Shareholder Returns
The company's balance sheet remains robust with a cash balance of $3.9 billion and available capacity on its credit facilities of $3.6 billion, resulting in total liquidity of $7.5 billion. D.R. Horton Inc (DHI, Financial) maintained a low debt to total capital ratio of 18.3%. The company's book value per common share increased by 20% to $67.78. Over the fiscal year, D.R. Horton repurchased $1.2 billion of common stock, reducing the outstanding share count by 3%. The return on equity was 22.7%, and the homebuilding return on inventory was 29.7%.
Operational Highlights
Homebuilding operations saw a decrease in revenue by 6% to $8.8 billion in the fourth quarter, with homes closed decreasing by 1% to 22,928 homes. However, the net sales orders increased significantly, and the company's cancellation rate improved to 21% from 32% in the prior year quarter. Rental operations pre-tax income was $524.2 million on revenues of $2.6 billion from sales of single-family and multi-family rental units.
Donald R. Horton, Chairman of the Board, commented on the company's performance, stating,
The D.R. Horton team finished the year strong, highlighted by fourth quarter consolidated pre-tax income of $2.0 billion on a 9% increase in revenues and a pre-tax profit margin of 19.2%. For the year, our consolidated pre-tax income was $6.3 billion on a 6% increase in revenues and a pre-tax profit margin of 17.8%."He also emphasized the company's strong position despite higher mortgage rates and inflationary pressures, and its focus on maximizing returns and capital efficiency.
Future Outlook and Dividends
Looking ahead, D.R. Horton Inc (DHI, Financial) provided initial guidance for fiscal 2024, including consolidated revenues of approximately $36.0 billion to $37.0 billion and homes closed by homebuilding operations of 86,000 to 89,000 homes. The company also plans to continue returning capital to shareholders through dividends and share repurchases, with a quarterly cash dividend increase to $0.30 per common share.
For detailed financial tables and further information, readers are encouraged to visit the full earnings release on the company's website. D.R. Horton Inc (DHI, Financial) remains committed to maintaining its disciplined approach to investing capital to enhance long-term value and uphold its position as America's largest homebuilder.
Explore the complete 8-K earnings release (here) from D.R. Horton Inc for further details.
