D.R. Horton, Inc. (NYSE:DHI) on Tuesday reported select preliminary results for its fourth quarter and fiscal year ended September 30, 2018 to provide an update relative to reported market conditions and recent events.
The company’s homes closed in the fourth quarter of fiscal 2018 increased 11% to 14,674 homes, compared to 13,165 homes in the same quarter of fiscal 2017. Home sales revenue for the quarter increased 9% to $4.4 billion from $4.0 billion in the same quarter of fiscal 2017. For the fiscal year ended September 30, 2018, homes closed increased 13% to 51,857 homes, compared to 45,751 homes in fiscal 2017. Home sales revenue in fiscal 2018 increased 14% to $15.5 billion from $13.7 billion in fiscal 2017.
Net sales orders for the fourth quarter ended September 30, 2018 increased 11% to 11,509 homes from 10,333 homes in the year-ago quarter, and the value of net sales orders increased 10% to $3.4 billion from $3.1 billion. The company’s cancellation rate for the fourth quarter of fiscal 2018 was 26%, compared to 25% in same quarter of fiscal 2017. Net sales orders for the fiscal year ended September 30, 2018 increased 13% to 52,740 homes from 46,605 homes in fiscal 2017, and the value of net sales orders increased 13% to $15.8 billion from $13.9 billion. The Company's cancellation rate for fiscal 2018 was 22%, unchanged from fiscal 2017. At September 30, 2018, the Company’s sales order backlog of homes increased 8% to 13,371 homes and 8% in value to $4.0 billion, compared to 12,329 homes and $3.7 billion at September 30, 2017.
Donald R. Horton, Chairman of the Board, said, “The D.R. Horton team delivered strong fiscal year 2018 results. Our fourth quarter homes closed increased 11%, and sales increased 11% on a 3% decline in active communities. Sales absorptions increased across all of our brands and geographic regions compared to the prior year, showing continued solid demand for our product offerings through September.
“We are confident in our team’s ability to drive growth as economic and housing fundamentals remain favorable, inventory levels are low and we continue to see good demand in our markets, particularly at affordable price points. With almost 30,000 homes in inventory at the end of the year and an attractive lot position, we continue to expect strong performance over the next year and are well-positioned to grow our consolidated revenues at a double-digit pace.”
