D.R. Horton Inc. (NYSE:DHI), Ft. Worth, on Tuesday morning reported a net loss for its fiscal third quarter ended June 30 of $142.3 million (-$0.45 per share), up from a loss of $399.9 million (-$1.26 per share) in the comparable quarter last year. While revenues, closings and new orders declined from last year's quarter, orders increased 22% from the prior fiscal quarter.
The loss included $110.8 million in impairments and write-downs of deposits and pre-acquisition costs related to land options Horton does not intend to pursue. The consensus Wall Street estimate was for a loss of 23 cents per share.
Home building revenues declined 34.7% to $914.1 million as homes closed fell 31.2% to 4,240. The company did not break out the average price of homes closed in its earnings release and had not yet filed its full quarterly report with the Securities and Exchange Commission at market open Tuesday.
Net sales orders for the third quarter totaled 5,089 homes with an aggregate value of $1.1 billion, down 7.4% from last years quarter in units and 8% in value. The cancellation rate for the quarter was 26%.
Backlog of homes under contract at June 30, 2009 was 5,430 homes with a total value of $1.1 billion, down 34.4% in units and 42.1% in aggregate value compared to June 30, 2008.
The financial services segment posted an operating profit of $2.8 million, down from $9.4 million in the year-earlier quarter.
SG&A fell 31% to $134.3 million from $194.7 million during last year's fiscal third quarter. Horton had an unrestricted cash balance at June 30, 2009 of $1.97 billion. It repurchased $87.8 million principal amount of its outstanding senior notes for a total purchase price of $84.0 million, plus accrued interest during the quarter.
Donald R. Horton, chairman, said that although the 22% rise in orders sequentially was "stronger than our usual seasonal trend," he added, "market conditions in the home building industry are still challenging, characterized by rising foreclosures, high inventory levels of available homes, increasing unemployment, tight credit for homebuyers and weak consumer confidence. We have continued to adjust our business to the current homebuilding environment by reducing our owned lot position and completed specs, controlling costs and strengthening our balance sheet."
Shares of Horton were down 4.5% at $11.22 in early trading amid a lackluster opening for the Dow and a mostly down performance by the other public home builder stocks.