D.R. Horton’s. (DHI) first-quarter net income grew 16% to $142.5 million, or $0.39 per diluted share, from $123.2 million, or $0.36 per diluted share in the same quarter of fiscal 2014.
Homebuilding revenue for the first quarter also increased, jumping 38% to $2.3 billion from $1.6 billion in the same quarter of fiscal 2014.
This beat analyst earnings per share expectations by $0.05 and revenue by $170 million.
Homes closed in the quarter increased 29% to 7,973, compared to 6,188 homes in the prior year quarter, while net sales orders for the first quarter increased 35% to 7,370 homes and 40% in value to $2.1 billion, compared to 5,454 homes and $1.5 billion in the prior year quarter.
Additionally, the cancellation rate (cancelled sales orders divided by gross sales orders) for the first quarter was 24%.
Sales order backlog of homes under contract at Dec. 31, 2014 increased 21% to 9,285 homes and 29% in value to $2.7 billion, compared to 7,684 homes and $2.1 billion at December 31, 2013.
At the end of the quarter, D.R. Horton had $517.7 million of homebuilding unrestricted cash and net homebuilding debt to total capital of 35.4%. 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.
“Our fiscal 2015 is off to a great start, highlighted by $220.7 million of pre-tax income, on $2.3 billion of revenues. Our position as the largest and most geographically diverse homebuilder provides a strong platform for us to compete for new home sales, evidenced by year-over-year increases in the value of our net sales orders, home sales revenue and sales order backlog of 40%, 37% and 29%, respectively,” said Donald R. Horton, chairman of the board.
"Our weekly sales pace has accelerated in January, and we are well-positioned to capture demand in the spring selling season with our solid balance sheet and robust community count, finished lot supply and inventory of homes available for sale.”