Horton D R (DHI) has reported a 31.20 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $206.90 million, or $0.55 a share in the quarter, compared with $157.70 million, or $0.42 a share for the same period last year.
Revenue during the quarter grew 20.19 percent to $2,904.20 million from $2,416.40 million in the previous year period.
Cost of revenue rose 19.86 percent or $375.70 million during the quarter to $2,267.90 million. Gross margin for the quarter expanded 22 basis points over the previous year period to 21.91 percent.
Operating margin for the quarter expanded 99 basis points over the previous year period to 10.56 percent.
For financial year 2017, Horton D R expects revenue to be in the range of $13,400 million to $13,800 million.
Donald R. Horton, chairman of the Board, said, "The D.R. Horton team produced strong results in our first quarter, highlighted by $318.1 million of pre-tax income on $2.9 billion of revenues. Our pre-tax profit margin improved 100 basis points from the prior year quarter to 11.0%, driven by improved SG&A leverage. The value of our net sales orders increased by 17%, and our home sales revenue increased by 20%."
Operating cash flow remains negative
Horton D R has spent $33.30 million cash to meet operating activities during the quarter as against cash outgo of $1.50 million in the last year period.
The company has spent $31.30 million cash to meet investing activities during the quarter as against cash outgo of $22.20 million in the last year period.
The company has spent $88.30 million cash to carry out financing activities during the quarter as against cash outgo of $91.40 million in the last year period.
Cash and cash equivalents stood at $1,150.30 million as on Dec. 31, 2016, down 9.33 percent or $118.40 million from $1,268.70 million on Dec. 31, 2015.
Real estate inventory remains almost stable
Real estate inventory stood at $8,742.40 million as on Dec. 31, 2016.
Total assets grew 4.76 percent or $532.60 million to $11,712.10 million on Dec. 31, 2016. On the other hand, total liabilities were at $4,730.30 million as on Dec. 31, 2016, down 7.59 percent or $388.70 million from year-ago.
Return on assets moved up 36 basis points to 1.77 percent in the quarter. At the same time, return on equity moved up 36 basis points to 2.96 percent in the quarter.
Debt comes down
Total debt was at $2,798.60 million as on Dec. 31, 2016, down 16.14 percent or $538.60 million from year-ago. Shareholders equity stood at $6,981.80 million as on Dec. 31, 2016, up 15.20 percent or $921.30 million from year-ago. As a result, debt to equity ratio went down 15 basis points to 0.40 percent in the quarter.
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