D.R. Horton, Inc. (NYSE:DHI) on Tuesday morning reported a net loss for its third fiscal quarter ended June 30, 2008 of $399.3 million (-$1.26 per diluted share). Analysts were expecting a loss of 70 cents a share.
The loss included $330.4 million in impairments and write-offs and an after-tax valuation allowance related to deferred tax assets of $168.7 million. The write downs were sharply lower than the $852 million taken in last year's fiscal third quarter.
Home building revenue for the quarter totaled $1.4 billion, a 44% drop from$2.5 billion in the same quarter of fiscal 2007.
Homes closed in the current quarter fell 36% to 6,167. Backlog of homes under contract at June 30, 2008 was down 47.5% to 8,281 homes with a value of $1.9 billion, down 56.8% from the same period a year ago. Net orders fell 35.7% to 5,501 homes with a value of $1.2 billion, down from 8,559 homes with a value of $2.0 billion. The cancellation rate was 39%.
The company said it generated $390 million in cash flow during the quarter, bringing its cash balance up to $819 million. It reduced spending on SG&A by 27.2% to $194.7 million. Its financial services unit generated$9.4 million in operating income, down from $18.2 million in the year-ago quarter.
The net loss for the nine months ended June 30, 2007 was $662.3 million(-$2.11) per diluted share. Home building revenue for the nine month period totaled $4.8 billion, down from $8.0 billion for the same period of fiscal 2007. Homes closed in the nine-month period totaled 19,435, compared to29,637 homes closed in the same period of fiscal 2007.
Horton stock opened up in early trading Tuesday.