D.R. Horton, Inc. (NYSE:DHI) on Tuesday reported net income of $505.3 million ($1.35 per share) for its fourth fiscal quarter ended September 30, up 8% from $466.1 million ($1.22 per share) in the same quarter of fiscal 2018. Wall Street was expecting a gain of $1.25 per share.

Home building revenue for the fourth quarter of fiscal 2019 increased 10% to $4.8 billion from $4.4 billion in the same quarter of 2018. Homes closed in the quarter increased 9% to 16,024 homes compared to 14,674 homes in the same quarter of fiscal 2018.

For the fiscal year ended September 30, 2019, net income per common share attributable to D.R. Horton increased 13% to $4.29 per diluted share compared to $3.81 per diluted share in fiscal 2018. Net income attributable to D.R. Horton in fiscal 2019 increased 11% to $1.6 billion compared to $1.5 billion in fiscal 2018. Home building revenue for the fiscal year ended September 30, 2019 increased 9% to $17.0 billion from $15.6 billion in fiscal 2018. Homes closed in fiscal 2019 increased 10% to 56,975 homes compared to 51,857 homes in fiscal 2018.

Net sales orders for the fourth quarter ended September 30, 2019 increased 14% to 13,130 homes from 11,509 homes in the year-ago quarter, and the value of net sales orders increased 16% to $4.0 billion from $3.4 billion. The cancellation rate for the fourth quarter of fiscal 2019 was 23% compared to 26% in same quarter of fiscal 2018.

Net sales orders for the fiscal year ended September 30, 2019 increased 7% to 56,565 homes from 52,740 homes in fiscal 2018, and the value of net sales orders increased 7% to $16.8 billion from $15.8 billion. The company's cancellation rate for fiscal 2019 was 21% compared to 22% in fiscal 2018.

The company had 27,700 homes in inventory at September 30, 2019, and its home building land and lot portfolio totaled 307,300 lots, of which 40% were owned and 60% were controlled through land purchase contracts.

The company's return on equity (ROE) was 17.2% in fiscal 2019, and home building return on inventory (ROI) was 18.1%. ROE is calculated as net income attributable to D.R. Horton for the year divided by average stockholders' equity.

Cash provided by home building operations for fiscal 2019 was $1.4 billion, and the company ended the year with $1.0 billion of home building unrestricted cash and home building debt to total capital of 17.0%.

Donald R. Horton, chairman of the board, said, “With 56,975 homes closed in fiscal 2019, D.R. Horton completed its 18th consecutive year as the largest home builder in the United States. Over the last five years, we have grown our revenues by 119% and our earnings per share by 186%, while also generating $4 billion of cash flows from home building operations, significantly increasing returns on inventory and equity and reducing our debt.

“Our continued strategic focus is to grow our revenues and profits and consolidate market share, while generating strong annual operating cash flows and returns. Our balance sheet strength, liquidity and earnings growth provide us with significant financial flexibility, and we plan to maintain our disciplined, opportunistic approach to investing capital to enhance the long-term value of our company.

“With our experienced operational teams, industry-leading market share, broad geographic footprint and affordable product offerings across multiple brands, we are well-positioned for fiscal 2020 and future years.”

The company also announced its board has appointed Maribess L. Miller as an independent director effective November 7, 2019. Miller was also named the chair of the nominating and governance committee and a member of both the audit and compensation committees.

Ms. Miller, a Certified Public Accountant, was an audit partner at PricewaterhouseCoopers (“PwC”) until her retirement in 2009. During her 34-year career at PwC, Miller managed large audit and consulting engagements of both public and private companies in the consumer, energy, healthcare, industrial products and technology industries and served in multiple leadership roles in the firm. From 2002 to 2009, she was PwC’s North Texas Market managing partner, after previously serving as the firm’s Southwest Region consumer, industrial products and energy practice leader and the managing partner of the firm’s U.S. healthcare audit practice.