D.R. Horton, Ft. Worth, Tex. (NYSE:DHI) on Friday reported a loss of $231.9 million for its fiscal fourth quarter ended Sept. 30 on impairments and write downs of $192.6 million and a 44.4% drop in home building revenue.
The loss, equivalent to -$0.73 per diluted share, missed the consensus analyst estimate of a loss of -$0.24 per share. Shares of Horton were hammered on the news, falling nearly 10.5% to $10.97 during the first hour of trading Friday.
Still, the loss was an improvement from the same quarter last year, in which the company took impairments and write-downs of $1.1 billion and posted a net loss of $799.9 million.
Home building revenue for the quarter totaled $1.0 billion, down from $1.8 billion in the same quarter of fiscal 2008. Homes closed totaled 4,810, a 31% drop from the previous year's quarter.
New orders rose 26% to 5,008 homes; new order dollars were up 21% to $1.027 billion. The cancellation rate rose to 27% from 26% in the previous quarter but was down from 30% in the fiscal second quarter.
Backlog of homes under contract at September 30, 2009 was 5,628 homes worth$1.042 billion, compared to 5,297 homes worth $1.207 billion at September 30, 2008.
SG&A was down 23.2% to $134.8 million. Horton had $1.9 billion in cash on its books at quarter's end. Net cash provided by operating activities for fiscal 2009 was $1.1 billion, compared to $1.9 billion in fiscal 2008. During the quarter, Horton bought back a total of $72.0 million principal amount of its outstanding notes for a total purchase price of $72.4 million, plus accrued interest. For the fiscal year, the Company repurchased a total of $380.3 million principal amount of its outstanding notes for a total purchase price of $368.0 million, plus accrued interest. Net debt-to-cap at quarter and fiscal year end was 36.3%.
For the fiscal year ended September 30, Horton reported a net loss of $545.3 million (-$1.72 per diluted share), including impairments and write downs of$407.7 million. The loss for fiscal 2008 was $2.6 billion (-$8.34 per diluted share) on , which $2.5 billion in charges and write-offs.
Net sales orders for fiscal 2009 were 17,034 homes worth $3.5 billion, compared to 21,251 homes worth $4.7 billion for fiscal 2008.
"Market conditions in the homebuilding industry are still challenging, characterized by rising foreclosures, high inventory levels of available homes, increasing unemployment, tight credit for homebuyers and weak consumer confidence," said Donald R. Horton, chairman. "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."