HORTON D R INC DE
For the period ended Mar 31, 2024. Filed Apr 23, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed Apr 23, 2024
DHI$152.28-3.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2023-12-31; filed 2024-01-24.
0000882184-24-000014
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-03-31; filed 2024-04-23.
0000882184-24-000027
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 244 previous paragraphs and 278 current paragraphs.
125 unchanged; 99 reworded; 50 added; 20 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 21 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (50)
Current report
•Homebuilding revenues increased 13% to $8.5 billion compared to $7.5 billion.
Current report
•Net sales orders increased 14% to 26,456 homes, and the value of net sales orders increased 17% to $10.1 billion.
Current report
•Homebuilding SG&A expense was 7.2% of homebuilding revenues compared to 7.3%.
Current report
•Homebuilding pre-tax income was $1.4 billion compared to $1.1 billion.
Current report
•Homebuilding pre-tax income was 16.0% of homebuilding revenues compared to 14.3%.
Current report
•Rental revenues were $371.3 million compared to $224.1 million.
Current report
•Rental pre-tax income was $33.3 million compared to $34.6 million.
Current report
•Multi-family rental units closed totaled 424 compared to no multi-family rental units closed.
Current report
•Forestar’s pre-tax income increased 64% to $58.9 million compared to $35.9 million.
Current report
•Forestar’s pre-tax income was 17.6% of revenues compared to 11.9%.
Current report
•Financial services revenues increased 4% to $225.6 million compared to $216.4 million.
Current report
•Financial services pre-tax income was $78.0 million compared to $85.6 million.
Current report
•Financial services pre-tax income was 34.6% of financial services revenues compared to 39.6%.
Current report
•Consolidated revenues increased 14% to $9.1 billion compared to $8.0 billion.
Current report
•Consolidated pre-tax income increased 23% to $1.5 billion compared to $1.2 billion.
Current report
•Net income attributable to D.R. Horton increased 24% to $1.2 billion compared to $942.2 million.
Current report
Homebuilding:
Current report
•Homebuilding revenues increased 11% to $15.8 billion compared to $14.2 billion.
Current report
•Homes closed increased 13% to 41,888 homes, while the average closing price of those homes decreased 2% to $375,800.
Current report
•Net sales orders increased 22% to 44,525 homes, and the value of net sales orders increased 24% to $16.9 billion.
Current report
•Home sales gross margin was 23.1% compared to 22.7%.
Current report
•Homebuilding SG&A expense was 7.7% of homebuilding revenues compared to 7.5%.
Current report
•Homebuilding pre-tax income was $2.5 billion compared to $2.2 billion.
Current report
•Homebuilding pre-tax income was 15.6% of homebuilding revenues compared to 15.2%.
Current report
•Net cash provided by homebuilding operations was $408.3 million compared to $1.5 billion.
Current report
Rental:
Current report
•Rental revenues were $566.5 million compared to $551.6 million.
Current report
•Rental pre-tax income was $64.6 million compared to $144.9 million.
Current report
•Single-family rental homes closed totaled 1,488 compared to 1,415.
Current report
Forestar:
Current report
•Forestar’s lots sold increased 23% to 6,439 compared to 5,242. Lots sold to D.R. Horton totaled 5,939 compared to 4,760.
Current report
•Forestar’s pre-tax income increased 73% to $110.1 million compared to $63.8 million.
Current report
•Forestar’s pre-tax income was 17.2% of revenues compared to 12.3%.
Current report
Financial Services:
Current report
•Financial services revenues increased 18% to $418.2 million compared to $353.4 million.
Current report
•Financial services pre-tax income increased 39% to $144.0 million compared to $103.8 million.
Current report
•Financial services pre-tax income was 34.4% of financial services revenues compared to 29.4%.
Current report
Consolidated Results:
Current report
•Consolidated revenues increased 11% to $16.8 billion compared to $15.2 billion.
Current report
•Consolidated pre-tax income increased 10% to $2.8 billion compared to $2.5 billion.
Showing the first 40 of 50 passages. Open the source sections for the rest.
Removed paragraphs (20)
Previous report
•Homebuilding revenues increased 8% to $7.3 billion compared to $6.7 billion.
Previous report
•Net sales orders increased 35% to 18,069 homes, and the value of net sales orders increased 38% to $6.8 billion.
Previous report
•Homebuilding SG&A expense was 8.3% of homebuilding revenues compared to 7.8%.
Previous report
•Homebuilding pre-tax income was $1.1 billion in both periods.
Previous report
•Homebuilding pre-tax income was 15.0% of homebuilding revenues compared to 16.2%.
Previous report
•Rental revenues were $195.3 million compared to $327.5 million.
Previous report
•Rental pre-tax income was $31.3 million compared to $110.3 million.
Previous report
•Forestar’s pre-tax income increased 84% to $51.2 million compared to $27.9 million.
Previous report
•Forestar’s pre-tax income was 16.7% of revenues compared to 12.9%.
Previous report
•Forestar’s debt to total capital was 33.4% compared to 33.7% and 36.7% at September 30, 2023 and December 31, 2022, respectively. Forestar’s net debt to total capital was 14.9% compared to 5.5% and 28.7% at September 30, 2023 and December 31, 2022, respectively.
Previous report
•Financial services revenues increased 41% to $192.6 million compared to $137.0 million.
Previous report
•Financial services pre-tax income increased 263% to $66.0 million compared to $18.2 million.
Previous report
•Financial services pre-tax income was 34.3% of financial services revenues compared to 13.3%.
Previous report
•Consolidated revenues increased 6% to $7.7 billion compared to $7.3 billion.
Previous report
•Consolidated pre-tax income decreased 2% to $1.2 billion compared to $1.3 billion.
Previous report
•Net income attributable to D.R. Horton decreased 1% to $947.4 million compared to $958.7 million.
Previous report
South Central Region — Homebuilding revenues increased 2% in the three months ended December 31, 2023 compared to the prior year period. The region generated pre-tax income of $271.6 million in the three months ended December 31, 2023 compared to $281.6 million in the prior year period. Home sales gross profit percentage decreased by 70 basis points in the three months ended December 31, 2023 compared to the prior year period, primarily due to the average selling price of homes closed decreasing by more than the average cost of those homes. As a percentage of homebuilding revenues, SG&A expenses increased 50 basis points in the three months ended December 31, 2023 compared to the prior year period.
Previous report
North Region — Homebuilding revenues increased 14% in the three months ended December 31, 2023 compared to the prior year period, primarily due to increases in the number of homes closed, particularly in our Washington, D.C. and Ohio markets. The region generated pre-tax income of $86.1 million in the three months ended December 31, 2023 compared to $69.4 million in the prior year period. Home sales gross profit percentage increased by 300 basis points in the three months ended December 31, 2023 compared to the prior year period, primarily due to the average cost of homes closed decreasing, while the average selling price of those homes increased. As a percentage of homebuilding revenues, SG&A expenses increased by 50 basis points in the three months ended December 31, 2023 compared to the prior year period.
Previous report
Total loan origination volume increased 13% in the three months ended December 31, 2023, and revenues from our mortgage operations increased 55% to $148.1 million from $95.7 million in the prior year period. The increase in revenues was primarily due to higher gains on sales of mortgages resulting from improved loan sale execution in the secondary market. Revenues from our title operations increased 8% to $44.5 million in the three months ended December 31, 2023 from $41.3 million in the prior year period.
Previous report
Cash and Cash Equivalents — At December 31, 2023, cash and cash equivalents of our homebuilding segment totaled $2.5 billion.
Reworded paragraphs (99)
Previous wording
D.R. Horton, Inc. is the largest homebuilding company in the United States as measured by number of homes closed. We construct and sell homes through our operating divisions in 118 markets across 33 states. Our common stock is included in the S&P 500 Index and listed on the New York Stock Exchange under the ticker symbol “DHI.” Unless the context otherwise requires, the terms “D.R. Horton,” the “Company,” “we” and “our” used herein refer to D.R. Horton, Inc., a Delaware corporation, and its predecessors and subsidiaries.
Current wording
D.R. Horton, Inc. is the largest homebuilding company in the United States as measured by number of homes closed. We construct and sell homes through our operating divisions in 119 markets across 33 states. Our common stock is included in the S&P 500 Index and listed on the New York Stock Exchange under the ticker symbol “DHI.” Unless the context otherwise requires, the terms “D.R. Horton,” the “Company,” “we” and “our” used herein refer to D.R. Horton, Inc., a Delaware corporation, and its predecessors and subsidiaries.
Previous wording
Our business operations consist of homebuilding, rental, a majority-owned residential lot development company, financial services and other activities. Our homebuilding operations are our core business and primarily include the construction and sale of single-family homes with sales prices generally ranging from $200,000 to more than $1,000,000, with an average closing price of $376,200 during the three months ended December 31, 2023. Approximately 88% of our home sales revenue in the three months ended December 31, 2023 was generated from the sale of single-family detached homes, with the remainder from the sale of attached homes, such as townhomes, duplexes and triplexes.
Current wording
Our business operations consist of homebuilding, rental, a majority-owned residential lot development company, financial services and other activities. Our homebuilding operations are our core business and primarily include the construction and sale of single-family homes with sales prices generally ranging from $200,000 to more than $1,000,000, with an average closing price of $375,800 during the six months ended March 31, 2024. Approximately 88% of our home sales revenue in the six months ended March 31, 2024 was generated from the sale of single-family detached homes, with the remainder from the sale of attached homes, such as townhomes, duplexes and triplexes.
Previous wording
At December 31, 2023, we owned 63% of the outstanding shares of Forestar Group Inc. (Forestar), a publicly traded residential lot development company listed on the New York Stock Exchange under the ticker symbol “FOR.” Forestar operates across many of our homebuilding operating markets and is a key part of our homebuilding strategy to maintain relationships with land developers and to control a large portion of our land and lot position through land purchase contracts.
Current wording
At March 31, 2024, we owned 62% of the outstanding shares of Forestar Group Inc. (Forestar), a publicly traded residential lot development company listed on the New York Stock Exchange under the ticker symbol “FOR.” Forestar operates across many of our homebuilding operating markets and is a key part of our homebuilding strategy to maintain relationships with land developers and to control a large portion of our land and lot position through land purchase contracts.
Previous wording
During the three months ended December 31, 2023, our number of homes closed increased 12%, and our home sales revenues increased 8% compared to the prior year period. Our consolidated revenues increased 6% to $7.7 billion in the three months ended December 31, 2023 compared to $7.3 billion in the prior year period. Our pre-tax income was $1.2 billion in the three months ended December 31, 2023 compared to $1.3 billion in the prior year period, and our pre-tax operating margin was 16.1% compared to 17.5%. Net income was $955.7 million in the three months ended December 31, 2023 compared to $968.3 million in the prior year period, and our diluted earnings per share were $2.82 compared to $2.76.
Current wording
During the six months ended March 31, 2024, our number of homes closed increased 13%, and our home sales revenues increased 11% compared to the prior year period. Our consolidated revenues increased 11% to $16.8 billion in the six months ended March 31, 2024 compared to $15.2 billion in the prior year period. Our pre-tax income was $2.8 billion in the six months ended March 31, 2024 compared to $2.5 billion in the prior year period, and our pre-tax operating margin was 16.5% in both periods. Net income was $2.1 billion in the six months ended March 31, 2024 compared to $1.9 billion in the prior year period, and our diluted earnings per share were $6.34 compared to $5.50.
Previous wording
In the trailing twelve months ended December 31, 2023, our return on equity (ROE) was 21.8% compared to 31.5% in the prior year period, and our homebuilding return on inventory (ROI) was 29.0% compared to 39.5%. ROE is calculated as net income attributable to D.R. Horton for the trailing twelve months divided by average stockholders’ equity, where average stockholders’ equity is the sum of ending stockholders’ equity balances of the trailing five quarters divided by five. Homebuilding ROI is calculated as homebuilding pre-tax income for the trailing twelve months divided by average inventory, where average inventory is the sum of ending homebuilding inventory balances for the trailing five quarters divided by five.
Current wording
In the trailing twelve months ended March 31, 2024, our return on equity (ROE) was 22.2% compared to 27.2% in the prior year period, and our homebuilding return on inventory (ROI) was 29.9% compared to 35.1%. ROE is calculated as net income attributable to D.R. Horton for the trailing twelve months divided by average stockholders’ equity, where average stockholders’ equity is the sum of ending stockholders’ equity balances of the trailing five quarters divided by five. Homebuilding ROI is calculated as homebuilding pre-tax income for the trailing twelve months divided by average inventory, where average inventory is the sum of ending homebuilding inventory balances for the trailing five quarters divided by five.
Previous wording
Although inflation and mortgage interest rates remain elevated, demand for new homes remained solid during the three months ended December 31, 2023, and our net sales orders increased 35% from the prior year quarter. We are continuing to use incentives and pricing adjustments to adapt to current market conditions. The disruptions in the supply chain for certain building materials and tightness in the labor market we experienced in recent years have largely subsided, and our construction cycle times have improved. Although higher interest rates and economic uncertainty may persist for some time, the supply of both new and existing homes at affordable price points remains limited, and demographics supporting housing demand remain favorable. We believe we are well-positioned to meet changing market conditions with our affordable product offerings and lot supply and will manage our home pricing, sales incentives and number of homes in inventory based on the level of homebuyer demand.
Current wording
Although inflation and mortgage interest rates remain elevated, demand for new homes has remained solid. Our net sales orders increased 46% from the first quarter and increased 14% from the prior year quarter. We are continuing to use incentives and pricing adjustments to adapt to current market conditions. The disruptions in the supply chain for certain building materials and tightness in the labor market we experienced in recent years have largely subsided, and our average construction cycle time has returned to historical norms. Although higher interest rates and economic fluctuations may persist for some time, the supply of both new and existing homes at affordable price points remains limited, and demographics supporting housing demand remain favorable. We believe we are well-positioned to meet changing market conditions with our affordable product offerings and lot supply and will manage our home pricing, sales incentives and number of homes in inventory based on the level of homebuyer demand.
Previous wording
Within our homebuilding land and lot portfolio, our lots controlled through purchase contracts represent 76% of the lots owned and controlled at December 31, 2023 compared to 75% at both September 30, 2023 and December 31, 2022. We remain focused on our relationships with Forestar and other land developers across the country and expect to continue to control a substantial majority of our lot pipeline through purchase contracts.
Current wording
We remain focused on our relationships with land developers across the country in order to maximize our returns and capital efficiency. Within our homebuilding land and lot portfolio, our lots controlled through purchase contracts represent 77% of the lots owned and controlled at March 31, 2024 compared to 75% at both September 30, 2023 and March 31, 2023. We are prioritizing the purchase of finished lots from Forestar and other land developers, when possible, to limit the number of lots we internally develop. During the six months ended March 31, 2024, 62% of the homes we closed were on lots developed by Forestar or third parties.
Previous wording
•Controlling a significant portion of our land and finished lot position through purchase contracts with Forestar and other land developers.
Current wording
•Controlling a significant portion of our land and finished lot position through purchase contracts and prioritizing the purchase of finished lots from Forestar and other land developers, when possible, to limit the number of lots we internally develop.
Previous wording
•Homes closed increased 12% to 19,340 homes, while the average closing price of those homes decreased 3% to $376,200.
Current wording
•Homes closed increased 15% to 22,548 homes, while the average closing price of those homes decreased 1% to $375,500.
Previous wording
•Sales order backlog decreased 11% to 13,965 homes, and the value of sales order backlog decreased 12% to $5.4 billion.
Current wording
•Sales order backlog decreased 7% to 17,873 homes, and the value of sales order backlog decreased 5% to $7.0 billion.
Previous wording
•Home sales gross margin was 22.9% compared to 23.9%.
Current wording
•Home sales gross margin was 23.2% compared to 21.6%.
Previous wording
•Homebuilding cash and cash equivalents totaled $2.5 billion compared to $2.9 billion and $2.0 billion at September 30, 2023 and December 31, 2022, respectively.
Current wording
•Homebuilding cash and cash equivalents totaled $2.2 billion compared to $2.9 billion and $2.4 billion at September 30, 2023 and March 31, 2023, respectively.
Previous wording
•Homebuilding inventories totaled $19.4 billion compared to $18.2 billion and $17.7 billion at September 30, 2023 and December 31, 2022, respectively.
Current wording
•Homebuilding inventories totaled $19.9 billion compared to $18.2 billion and $17.6 billion at September 30, 2023 and March 31, 2023, respectively.
Previous wording
•Homes in inventory totaled 42,600 compared to 42,000 and 43,200 at September 30, 2023 and December 31, 2022, respectively.
Current wording
•Homes in inventory totaled 45,000 compared to 42,000 and 43,600 at September 30, 2023 and March 31, 2023, respectively.
Previous wording
•Owned lots totaled 145,000 compared to 141,100 and 136,400 at September 30, 2023 and December 31, 2022, respectively. Lots controlled through purchase contracts totaled 462,200 compared to 427,300 and 414,600 at September 30, 2023 and December 31, 2022, respectively.
Current wording
•Owned lots totaled 143,900 compared to 141,100 and 136,300 at September 30, 2023 and March 31, 2023, respectively. Lots controlled through purchase contracts totaled 473,300 compared to 427,300 and 410,700 at September 30, 2023 and March 31, 2023, respectively.
Previous wording
•Homebuilding debt was $2.4 billion compared to $2.3 billion and $3.0 billion at September 30, 2023 and December 31, 2022, respectively.
Current wording
•Homebuilding debt was $2.4 billion compared to $2.3 billion and $2.7 billion at September 30, 2023 and March 31, 2023, respectively.
Previous wording
•Rental inventory totaled $3.0 billion compared to $2.7 billion and $2.9 billion at September 30, 2023 and December 31, 2022, respectively.
Current wording
•Rental inventory totaled $3.1 billion compared to $2.7 billion and $3.3 billion at September 30, 2023 and March 31, 2023, respectively.
Previous wording
•Single-family rental homes closed totaled 379 compared to 694.
Current wording
•Single-family rental homes closed totaled 1,109 compared to 721.
Previous wording
•Forestar’s revenues increased 41% to $305.9 million compared to $216.7 million. Revenues in the current and prior year quarters included $273.5 million and $189.8 million, respectively, of revenue from land and lot sales to our homebuilding segment.
Current wording
•Forestar’s revenues increased 11% to $333.8 million compared to $301.5 million. Revenues in the current and prior year quarters included $310.3 million and $253.1 million, respectively, of revenue from land and lot sales to our homebuilding segment.
Previous wording
•Forestar’s lots sold increased 39% to 3,150 compared to 2,263. Lots sold to D.R. Horton totaled 2,834 compared to 2,094.
Current wording
•Forestar’s lots sold increased 10% to 3,289 compared to 2,979. Lots sold to D.R. Horton totaled 3,105 compared to 2,666.
Previous wording
•Forestar’s cash and cash equivalents totaled $458.9 million compared to $616.0 million and $216.4 million at September 30, 2023 and December 31, 2022, respectively.
Current wording
•Forestar’s cash and cash equivalents totaled $416.2 million compared to $616.0 million and $286.7 million at September 30, 2023 and March 31, 2023, respectively.
Previous wording
•Forestar’s inventories totaled $2.0 billion compared to $1.8 billion and $2.1 billion at September 30, 2023 and December 31, 2022, respectively.
Current wording
•Forestar’s inventories totaled $2.1 billion compared to $1.8 billion and $2.0 billion at September 30, 2023 and March 31, 2023, respectively.
Previous wording
•Forestar’s owned and controlled lots totaled 82,400 compared to 79,200 and 82,300 at September 30, 2023 and December 31, 2022, respectively. Of these lots, 33,700 were under contract to sell to or subject to a right of first offer with D.R. Horton compared to 31,400 and 35,000 at September 30, 2023 and December 31, 2022, respectively.
Current wording
•Forestar’s owned and controlled lots totaled 96,100 compared to 79,200 and 76,400 at September 30, 2023 and March 31, 2023, respectively. Of these lots, 34,300 were under contract to sell to or subject to a right of first offer with D.R. Horton compared to 31,400 and 31,500 at September 30, 2023 and March 31, 2023, respectively.
Previous wording
•Forestar’s debt was $705.3 million compared to $695.0 million and $706.4 million at September 30, 2023 and December 31, 2022, respectively.
Current wording
•Forestar’s debt was $705.7 million compared to $695.0 million and $706.8 million at September 30, 2023 and March 31, 2023, respectively.
Previous wording
•Consolidated pre-tax income was 16.1% of consolidated revenues compared to 17.5%.
Current wording
•Consolidated pre-tax income was 16.8% of consolidated revenues compared to 15.6%.
Previous wording
•Income tax expense was $291.8 million compared to $298.9 million, and our effective tax rate was 23.4% compared to 23.6%.
Current wording
•Income tax expense was $344.8 million compared to $295.7 million, and our effective tax rate was 22.6% compared to 23.7%.
Previous wording
•Diluted net income per common share attributable to D.R. Horton increased 2% to $2.82 compared to $2.76.
Current wording
•Diluted net income per common share attributable to D.R. Horton increased 29% to $3.52 compared to $2.73.
Previous wording
•Stockholders’ equity was $23.2 billion compared to $22.7 billion and $20.2 billion at September 30, 2023 and December 31, 2022, respectively.
Current wording
•Stockholders’ equity was $23.8 billion compared to $22.7 billion and $20.7 billion at September 30, 2023 and March 31, 2023, respectively.
Previous wording
•Book value per common share increased to $69.70 compared to $67.78 and $58.71 at September 30, 2023 and December 31, 2022, respectively.
Current wording
•Book value per common share increased to $72.13 compared to $67.78 and $60.73 at September 30, 2023 and March 31, 2023, respectively.
Previous wording
•Debt to total capital was 18.6% compared to 18.3% and 22.0% at September 30, 2023 and December 31, 2022, respectively. Net debt to total capital was 7.8% compared to 5.1% and 13.3% at September 30, 2023 and December 31, 2022, respectively.
Current wording
•Debt to total capital was 20.0% compared to 18.3% and 22.4% at September 30, 2023 and March 31, 2023, respectively. Net debt to total capital was 10.8% compared to 5.1% and 12.3% at September 30, 2023 and March 31, 2023, respectively.
Previous wording
•Multi-family rental units closed totaled 300 in both periods.
Current wording
•Multi-family rental units closed totaled 724 compared to 300.
Previous wording
The following tables and related discussion set forth key operating and financial data for our homebuilding operations by reporting segment as of and for the three months ended December 31, 2023 and 2022.
Current wording
The following tables and related discussion set forth key operating and financial data for our homebuilding operations by reporting segment as of and for the three and six months ended March 31, 2024 and 2023.
Previous wording
The number of net sales orders increased 35% in the three months ended December 31, 2023 compared to the prior year period, and the value of net sales orders increased 38% to $6.8 billion (18,069 homes) compared to $4.9 billion (13,382 homes), with significant increases in all regions. The average selling price of net sales orders during the three months ended December 31, 2023 was $375,800, up 2% from the prior year period.
Current wording
The number of net sales orders increased 14% and 22% in the three and six months ended March 31, 2024, respectively, compared to the prior year periods, with increases in all regions. The value of net sales orders increased 17% to $10.1 billion (26,456 homes) and 24% to $16.9 billion (44,525 homes) for the three and six months ended March 31, 2024, respectively, compared to $8.6 billion (23,142 homes) and $13.6 billion (36,524 homes) in the prior year periods. The average selling price of net sales orders during the three and six months ended March 31, 2024 was $380,400 and $378,500, respectively, up 2% from the prior year periods.
Previous wording
The markets contributing most to the increases in sales order volume were: the Salt Lake City and Denver markets in the Northwest; the Phoenix, California and Las Vegas markets in the Southwest; the Dallas market in the South Central; the Florida markets (particularly Tampa) in the Southeast; the Carolina (particularly Raleigh), Knoxville and Atlanta markets in the East; and the Washington, D.C., Ohio, Indiana and Minnesota markets in the North.
Current wording
The markets contributing most to the increases in sales order volume in both periods were: the Salt Lake City and Portland markets in the Northwest; the California and Phoenix markets in the Southwest; the Dallas and San Antonio markets in the South Central; the Alabama and Tampa markets in the Southeast; the North Carolina markets in the East; and the Indiana and Washington, D.C. markets in the North.
Previous wording
Despite continued inflationary pressures and elevated mortgage interest rates, demand for new homes remained solid during the first quarter, and our net sales orders increased 35% from the prior year quarter. We are continuing to use incentives and pricing adjustments to adapt to current market conditions. Although higher interest rates and economic uncertainty may persist for some time, the supply of both new and existing homes at affordable price points remains limited, and demographics supporting housing demand remain favorable. We believe we are well-positioned to meet changing market conditions with our affordable product offerings and lot supply.
Current wording
Despite continued inflationary pressures and elevated mortgage interest rates, demand for new homes remained solid during the second quarter, as our net sales orders increased 46% from the first quarter and 14% from the prior year quarter. We are continuing to use incentives and pricing adjustments to adapt to current market conditions. Although higher interest rates and economic fluctuations may persist for some time, the supply of both new and existing homes at affordable price points remains limited, and demographics supporting housing demand remain favorable. We believe we are well-positioned to meet changing market conditions with our affordable product offerings and lot supply.
Previous wording
Revenues from home sales were $7.3 billion (19,340 homes closed) for the three months ended December 31, 2023 compared to $6.7 billion (17,340 homes closed) in the prior year period. The number of homes closed increased 12% in the three months ended December 31, 2023 compared to the prior year period, with increases in all regions. The average selling price of homes closed during the three months ended December 31, 2023 was $376,200, down 3% from the prior year period.
Current wording
The number of homes closed increased 15% and 13% in the three and six months ended March 31, 2024, respectively, compared to the prior year periods, with increases in all regions. The average selling price of homes closed during the three and six months ended March 31, 2024 was $375,500 and $375,800, respectively, down 1% and 2%, respectively, from the prior year periods.
Previous wording
The markets contributing most to the increases in closings volume were: the Salt Lake City market in the Northwest; the California and Las Vegas markets in the Southwest; the Fort Worth market in the South Central; the Alabama markets in the Southeast; the Carolina markets (particularly Myrtle Beach) in the East; and the Washington, D.C. and Ohio markets in the North.
Current wording
The markets contributing most to the increases in closings volume in both periods were: the Salt Lake City and Portland markets in the Northwest; the California and Nevada markets in the Southwest; the Houston market in the South Central; the Tampa market in the Southeast; the Carolina markets (particularly Myrtle Beach and Raleigh) in the East; and the Ohio and Washington, D.C. markets in the North.
Previous wording
Gross profit from home sales increased to $1.7 billion in the three months ended December 31, 2023 from $1.6 billion in the prior year period and decreased 100 basis points to 22.9% as a percentage of home sales revenues. The percentage decrease resulted from a decrease of 80 basis points primarily due to a decrease in the value of hedging instruments we use to offer below market interest rate financing to our homebuyers, 20 basis points due to an increase in warranty and construction defect costs and 10 basis points due to an increase in the amount of purchase accounting adjustments related to prior year acquisitions, partially offset by 10 basis points due to a decrease in the amortization of capitalized interest.
Current wording
Gross profit from home sales increased to $2.0 billion in the three months ended March 31, 2024 from $1.6 billion in the prior year period and increased 160 basis points to 23.2% as a percentage of home sales revenues. The percentage increase resulted from an increase of 160 basis points due to the average cost of our homes closed decreasing by more than the decrease in the average selling price of those homes, 10 basis points due to a decrease in the amortization of capitalized interest and 10 basis points due to a decrease in warranty and construction defect costs, partially offset by 20 basis points due to an increase in the amount of purchase accounting adjustments related to prior year acquisitions.
Previous wording
We remain focused on managing the pricing, incentives and sales pace in each of our communities to optimize the returns on our inventory investments and adjust to local market conditions and new home demand. To adjust to changes in market conditions during fiscal 2023 and into fiscal 2024, we have increased our use of incentives and reduced home prices and sizes of our home offerings where necessary to provide better affordability to homebuyers. Based on current market conditions, we expect our incentive levels to remain elevated throughout fiscal 2024.
Current wording
We remain focused on managing the pricing, incentives and sales pace in each of our communities to optimize the returns on our inventory investments and adjust to local market conditions and new home demand. To adjust to changes in market conditions during fiscal 2023 and the first half of fiscal 2024, we have used a higher level of incentives and reduced home prices and sizes of our home offerings where necessary to provide better affordability to homebuyers. Based on current market conditions, we expect our incentive levels to remain elevated throughout fiscal 2024.
Previous wording
Land/lot sales and other revenues from our homebuilding operations were $20.3 million and $34.8 million in the three months ended December 31, 2023 and 2022, respectively.
Current wording
Land/lot sales and other revenues from our homebuilding operations were $6.9 million and $27.2 million in the three and six months ended March 31, 2024, respectively, and $19.9 million and $54.7 million in the prior year periods.
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Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Key financial results for the six months ended March 31, 2024, as compared to the same period of 2023, were as follows:
Current report — wording carried from elsewhere
•Forestar’s revenues increased 23% to $639.7 million compared to $518.2 million. Revenues in the current and prior year periods included $583.9 million and $442.9 million, respectively, of revenue from land and lot sales to our homebuilding segment.
Current report — wording carried from elsewhere
•Diluted net income per common share attributable to D.R. Horton increased 15% to $6.34 compared to $5.50.
Current report — wording carried from elsewhere
Gross profit from home sales increased to $3.6 billion in the six months ended March 31, 2024 from $3.2 billion in the prior year period and increased 40 basis points to 23.1% as a percentage of home sales revenues. The percentage increase resulted from an increase of 50 basis points due to the average cost of our homes closed decreasing by more than the decrease in the average selling price of those homes and 10 basis points due to a decrease in the amortization of capitalized interest, partially offset by a decrease of 10 basis points due to an increase in warranty and construction defect costs and 10 basis points due to an increase in the amount of purchase accounting adjustments related to prior year acquisitions.