D.r. Horton, Inc. · NYSE:DHI
D.r. Horton — Barclays Americas Select Franchise Conference 2016
18 slides from D.r. Horton's conference presentation, May 17, 2016
Slide 1: Barclays Americas Select Franchise Conference
Barclays Americas Select Franchise Conference May 17, 2016
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may include “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Although D.R. Horton believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be mate
Slide 3: D.R. Horton, Inc.
D.R. Horton, Inc. Traded on NYSE as DHI #1 builder for 14 consecutive years1 $11.3 billion in annual revenues2 37,755 in annual homes closed2 $1.2 billion in annual pre-tax income2 $11.3 billion of total assets3 $6.2 billion of stockholders’ equity3 Book value per share of $16.853 1B
Slide 4: Geographic Diversification
Geographic Diversification HB Revenue1 79 Markets | 26 States East 12% West 24% Midwest 6% Southwest 3% South Central 26% Southeast 29% Inventory2 East 10% Midwest 6% West 28% Region States Covered East Delaware, Georgia, Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina, Virginia M
Slide 5: Broad Range of Product Offerings
Broad Range of Product Offerings Homes for entry-level, move-up and luxury buyers 7% $500k+ 27% < $200k 24% $300k to $500k $200k to $250k to $250k $300k 24% 18% Represents homes closed for the trailing twelve months ended 3/31/16 Barclays Americas Select Franchise Conference | May 2016 5
Slide 6: Growing Two New Brands
Growing Two New Brands New Brand Growth - TTM Overall Brand Mix – Q2 Homes Closed 10,000 4% 1,326 23% 7,500 5,000 7,693 73% 714 2,500 2,840 0 TTM 3/31/15 TTM 3/31/16 Represents homes closed Barclays Americas Select Franchise Conference | May 2016 6
Slide 7: Operational Focus
Operational Focus Current land ownership level is sufficient to support double-digit annual growth in both revenues and profits Consistently optimize balance of sales absorptions and gross margins to maximize returns in each community Manage land and home inventory levels efficiently to genera
Slide 8: Management Tenure & Experience
Management Tenure & Experience Average employee tenure: Executive Team and Region Presidents – over 20 years Division Presidents – approximately 15 years City Managers – over 10 years Barclays Americas Select Franchise Conference | May 2016 8
Slide 9: Q2 FY 2016 Highlights
Q2 FY 2016 Highlights The value of net homes sold, homes closed and homes in backlog increased by 13%, 16% and 14%, respectively 12,292 net homes sold and 9,262 homes closed 13,695 homes in backlog at 3/31/16 Consolidated pre-tax income increased 31% to $300.5 million Consolidated pre-tax
Slide 10: Income Statement
Income Statement Fiscal 3 Months Ended 6 Months Ended Year Ended 3/31/2016 3/31/2015 3/31/2016 3/31/2015 9/30/2015 Homes closed 9,262 8,243 17,323 16,216 36,648 Revenues: Home sales $ 2,686.0 $ 2,318.8 $ 5,026.9 $ 4,559.4 $ 10,469.4 Land/lot sales & other 15.0 19.7 35.2 32.1 89.6 2,701.0 2,338.5 5,0
Slide 11: Home Sales Gross Margin
Home Sales Gross Margin Homes sales gross margin of around 20% in a stable housing market 25% 20% 21.3% 20.8% 19.8% 19.7% 19.9% 19.9% 19.9% 19.9% 17.7% 15% 10% 5% 0% FY12 FY13 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Shown as a % of home sales revenues Includes interest amortized to cost
Slide 12: Homebuilding SG&A
Homebuilding SG&A SG&A as a percentage of homebuilding revenues improved 80 basis points in Q2 FY2016 Fiscal YTD 3/31 Second Fiscal Quarter SG&A $ SG&A $ $1,200 $1,200 $1,000 $1,000 $800 $800 $600 10.5% 9.9% $600 $400 $501.6 $400 10.4% 9.6% $480.4 $200 $200 $242.4 $258.2 $0 $0 2015 2016 Q2 FY15 Q2 F
Slide 13: Consolidated Pre-tax Income
Consolidated Pre-tax Income Consolidated pre-tax profit margin improved 130 basis points to 10.9% in Q2 FY2016 Fiscal YTD 3/31 Second Fiscal Quarter PTI $ PTI $ $1,200 $1,200 $1,000 $1,000 $800 $800 $600 10.5% $600 9.6% $400 $400 10.9% $541.8 9.6% $450.8 $200 $200 $230.1 $300.5 $0 $0 2015 2016 Q2 FY
Slide 14: Balance Sheet
Balance Sheet 3/31/16 9/30/15 3/31/15 HB cash and cash equivalents $ 1,195.2 $ 1,355.9 $ 665.8 Restricted cash 11.4 9.7 10.4 Inventories 8,216.6 7,807.0 8,136.9 Deferred income taxes, net 526.6 558.1 547.7 Other assets 1,350.4 1,420.3 1,332.9 Total $ 11,300.2 $ 11,151.0 $ 10,693.7 Notes payable - HB
Slide 15: Homes in Inventory
Homes in Inventory 25,000 24,600 21,300 20,600 20,000 19,800 17,000 15,000 13,000 10,000 5,000 0 9/30/12 9/30/13 9/30/14 3/31/15 9/30/15 3/31/16 Models Sold Specs Barclays Americas Select Franchise Conference | May 2016 15
Slide 16: Land and Lot Position
Land and Lot Position Supports double-digit growth in both revenues and pre-tax profits 200,000 183,500 188,500 180,900 177,200 175,000 173,900 152,700 150,000 58,900 55,500 55,500 76,600 58,100 54,300 125,000 100,000 75,000 94,600 126,600 124,600 121,700 118,400 111,900 50,000 25,000 0 9/30/12 9/30
Slide 17: FY 2016 Expectations
FY 2016 Expectations* Consolidated pre-tax profit margin in the range of 10.7% to 11.2%, an improvement of 30 to 80 basis points Consolidated revenues of $12.0 billion to $12.5 billion, an increase of 11% to 15% Closings between 39,500 homes and 41,500 homes, an increase of 8% to 13% Home sa
Slide 18: Barclays Americas Select Franchise Conference
Barclays Americas Select Franchise Conference May 17, 2016
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