D. R. Horton Fourth Quarter Loss Widens

Nov.25.09 | About: D. R. (DHI)

D.R. Horton (NYSE:DHI) has revealed a net loss of $231.9 million or 73 cents per share for the fourth quarter of its fiscal 2009 ended Sep 30, 2009, as the homebuilding industry faced several challenges such as rising foreclosures, high inventory levels of available homes, increasing unemployment, tight credit for homebuyers and weak consumer confidence.

The loss was worse than the Zacks Consensus Estimate loss of 27 cents per share. However, the results were considerably better than $799.9 million or $2.53 per share reported in the same quarter a year ago. D.R. Horton generated a revenue of $1 billion during the quarter, lower than the year-ago level by 42%.

Homes closed totaled 4,810, compared to 6,961 homes closed in the same quarter of fiscal 2008. For the full year, D.R. Horton showed a net loss of $545.3 million or $1.72 per share compared to $2.6 billion or $8.34 per diluted share in fiscal 2008. Revenue for the fiscal plummeted 45% to $3.6 billion. Homes closed totaled 16,703 compared to 26,396 homes closed in the prior fiscal. D.R. Horton had cash and cash equivalents of $1.9 billion as on Sep 30, 2009.

The net home building debt to total capitalization ratio stood at 36.3% at the end of the fiscal year. In fiscal 2009, D.R. Horton had a net cash flow from operating activities of $1.14 billion. Meanwhile, capital expenditures totaled $6.2 million during the period. D.R. Horton is the largest national builder, primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets.

The company’s operations are spread over 77 metropolitan markets in 27 states in the East, Midwest, Southeast, South Central, Southwest and West regions of the U.S. We continue to recommend the shares of the company as Neutral.