D.R. Horton, Inc., Americas Builder, Reports Fourth Quarter and Fiscal 2008 Results and Declares Quarterly Dividend

D.R. Horton, Inc. America’s Builder, today reported results for its fourth quarter and fiscal year ended September 30, 2008. Home sales revenue for the fourth quarter of fiscal 2008 totaled $1.5 billion on 6,961 homes closed, compared to $3.0 billion on 11,733 homes closed in the same quarter of fiscal 2007. Land and lot sales revenue in the fourth quarter totaled $209.2 million, compared to $154.8 million in the same quarter of fiscal 2007. Approximately 32,000 lots were sold during the quarter, of which 55% were undeveloped, 20% were partially developed and 25% were fully developed. The Company owned approximately 99,000 lots at September 30, 2008.

Pre-tax charges to cost of sales in the fourth quarter included $364.7 million in impairment charges for owned inventory, $624.2 million in impairment charges for land and lots that were sold during the quarter and $85.7 million for write-offs of deposits and pre-acquisition costs related to land option contracts that the Company does not intend to pursue. Additionally, pre-tax goodwill impairment charges for the fourth quarter totaled $79.4 million. For the fourth quarter of fiscal 2008, the Company reported a net loss of $799.9 million or $2.53 per diluted share, which reflects a tax benefit of $365.3 million. The net loss for the same quarter of fiscal 2007 was $50.1 million or $0.16 per diluted share.

For the fiscal year ended September 30, 2008, the Company reported home sales revenue of $6.2 billion on 26,396 homes closed, compared to $10.7 billion in fiscal 2007 on 41,370 homes closed. Land and lot sales revenue in fiscal 2008 totaled $354.3 million, compared to $367.6 million in fiscal 2007.

Pre-tax charges to cost of sales in fiscal 2008 included $2.4 billion in inventory impairment charges and $111.9 million in write-offs of deposits and pre-acquisition costs related to land option contracts that the Company does not intend to pursue. Additionally, pre-tax goodwill impairment charges for the fiscal year totaled $79.4 million. For fiscal 2008, the Company reported a net loss totaling $2.6 billion, or $8.34 per diluted share. The net loss for fiscal 2007 was $712.5 million or $2.27 per diluted share.

The Company’s sales backlog of homes under contract at September 30, 2008 was 5,297 homes ($1.2 billion), compared to 10,442 homes ($2.7 billion) at September 30, 2007. Net sales orders for the fourth quarter ended September 30, 2008 totaled 3,977 homes ($852.3 million), compared to 6,374 homes ($1.3 billion) for the same quarter of fiscal 2007. The Company’s cancellation rate (cancelled sales orders divided by gross sales orders) for the fourth quarter of fiscal 2008 was 47%. Net sales orders for fiscal 2008 were 21,251 homes ($4.7 billion), compared to 33,687 homes ($8.2 billion) for fiscal 2007.

The Company’s homebuilding cash balance at September 30, 2008 was $1.4 billion, and the Company expects to receive a federal income tax refund of $622 million in December 2008. Net cash provided by operating activities for fiscal 2008 was $1.9 billion, compared to $1.4 billion in fiscal 2007.

In the fourth quarter, the Company repurchased a total of $36.7 million principal amount of its outstanding notes for a total purchase price of $36.7 million, plus accrued interest. Subsequent to September 30, 2008, the Company has repurchased a total of $102.9 million principal amount of its outstanding notes for a total purchase price of $98.2 million, plus accrued interest.