Fort Worth-based home builder D.R. Horton posted a profit in its first fiscal quarter as more buyers came to the new-home market, including those who were once hunting for distressed properties, the company said Friday.
Donald Tomnitz, Horton's president and CEO, told Wall Street analysts that some customers between October and December were folks who grew tired of the "very laborious" process of trying to buy a foreclosed home or a home via a short sale.Horton's quarterly profit of $27.7 million, or 9 cents a share, compares with a loss of $20.4 million, or 6 cents a share, in the year-ago quarter.Shares of Horton (ticker: DHI) closed up 27 cents at $14.39.Home-building revenue in the quarter ended Dec. 31 totaled $885.6 million, compared with $767 million the previous year, the company said.The company closed sales on 4,118 homes, compared with 3,637 homes a year ago.Orders also grew slightly. In the quarter, orders totaled 3,794 homes, compared with 3,363 homes in the year ago quarter, the company said.Looking ahead to future income, the backlog of homes under contract as of Dec. 31 was 4,530, compared with 3,854 homes a year ago."We're off to a strong start," Tomnitz said. "Our business feels more positive. We're feeling better than we have in six years."But Tomnitz remained cautious in his remarks on the housing industry, saying that conditions "remain soft."The lack of job creation remains an obstacle to selling homes, he said, and is one reason Horton "has one foot on the brake and one foot on the accelerator.""We sort of think this is the bottom of the market," Tomnitz said. "We do have some markets that are overperforming."Alabama, Florida and Georgia were strong areas for Horton in the quarter; it saw increases in sales orders, homes closed and backlog.Horton has a supply of home lots adequate to meet market demand for the next two years and "remains flexible" and able to increase production where needed, Tomnitz said.Chairman Donald Horton said the company is "focused on being profitable each quarter and for the entire fiscal year."Sandra Baker, 817-390-7727Twitter: @SandraBakerFWSTHave more to add? News tip? Tell us
