D.R. Horton, Inc., America's Builder, Reports Fiscal 2007 Second Quarter Results

Business Wire, April 19, 2007

FORT WORTH, Texas -- D.R. Horton, Inc. (NYSE:DHI), America's Builder, the largest homebuilder in the United States, Thursday (April 19, 2007), reported net income for its second fiscal quarter ended March 31, 2007 of $51.7 million ($0.16 per diluted share), which included pre-tax charges to cost of sales of $67.3 million ($0.13 per diluted share) for inventory impairments and $13.9 million ($0.03 per diluted share) for write-offs of deposits and pre-acquisition costs related to land option contracts that the Company does not intend to pursue. Net income for the same quarter of fiscal 2006 was $352.8 million ($1.11 per diluted share). Homebuilding revenue for the second quarter of fiscal 2007 totaled $2.6 billion, compared to $3.5 billion in the same quarter of fiscal 2006. Homes closed in the current quarter totaled 9,792, compared to 12,570 homes closed in the year ago quarter.

For the six months ended March 31, 2007, net income totaled $161.4 million ($0.51 per diluted share), which included pre-tax charges to cost of sales of $108.2 million ($0.21 per diluted share) for inventory impairments and $50.6 million ($0.10 per diluted share) for write-offs of deposits and pre-acquisition costs related to land option contracts that the Company does not intend to pursue. Net income for the six months ended March 31, 2006 was $662.9 million ($2.09 per diluted share). Homebuilding revenue for the six months ended March 31, 2007 totaled $5.4 billion compared to $6.4 billion for the same period of fiscal 2006. Homes closed in the six-month period totaled 19,994, compared to 22,461 homes closed in the same period of fiscal 2006.

The Company's sales backlog of homes under contract at March 31, 2007 was 16,885 homes ($4.8 billion), compared to 24,017 homes ($7.1 billion) at March 31, 2006. As previously reported, net sales orders for the second quarter ended March 31, 2007 totaled 9,983 homes ($2.6 billion), compared to 15,771 homes ($4.4 billion) for the same quarter of fiscal 2006. Net sales orders for the first six months of fiscal 2007 were 18,754 homes ($4.9 billion), compared to 27,234 homes ($7.5 billion) for the same period of fiscal 2006.

Donald R. Horton, Chairman of the Board, said, "Market conditions in the homebuilding industry continue to be challenging in most of our markets as inventory levels of both new and existing homes remain high, and further increases in the use of sales incentives continue to put pressure on profit margins. Our focus on managing our balance sheet in a disciplined manner resulted in positive cash flows from operations for the third consecutive quarter. We also improved our ratio of homebuilding debt to total capitalization, net of cash, to 40.9% from 43.9% a year ago."

The Company will host a conference call on Thursday, April 19, 2007 at 10:00 a.m. Eastern Daylight Time. The dial-in number is 800-374-9096, and the call will also be webcast from www.drhorton.com on the "Investor Relations" page.

D.R. Horton, Inc., America's Builder, is the largest homebuilder in the United States, delivering more than 53,000 homes in its fiscal year ended September 30, 2006. Founded in 1978 in Fort Worth, Texas, D.R. Horton has expanded its presence to include 85 markets in 27 states in the Northeast, Southeast, South Central, Southwest, California and West regions of the United States. The Company is engaged in the construction and sale of high quality homes with sales prices ranging from $90,000 to over $900,000. D.R. Horton also provides mortgage financing and title services for homebuyers through its mortgage and title subsidiaries.

Portions of this document may constitute "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Factors that may cause the actual results to be materially different from the future results expressed by the forward-looking statements include, but are not limited to: changes in general economic, real estate, construction and other business conditions; changes in interest rates, the availability of mortgage financing or increases in the costs of owning a home; governmental regulations and environmental matters; the Company's substantial debt; competitive conditions within the industry; the availability of capital to the Company on favorable terms; the Company's ability to successfully effect its growth strategies; and warranty and product liability claims. Additional information about issues that could lead to material changes in performance is contained in D.R. Horton's annual report on Form 10-K and most recent quarterly report on Form 10-Q, which are filed with the Securities and Exchange Commission.

WEBSITE ADDRESS: www.drhorton.com

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