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Earnings Calls: 
D.R Horton Second Quarter Earnings Call
Author: Maclintosh Kuhlengisa
123jump.com
Last Update: 10:18 AM EDT May 09 2008


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The home builder reported a net loss of $1.3 billion or $4.14 per share, from net income of $51.7 million or 16 cents a share in the prior year as revenues fell 62.5% to $1.6 billion. The firm continues to actively work to reduce the owned land and lot supply through building and closing homes, as well as through opportunistic land and lot sales. A dividend of 7.5 cents a share was declared during the period.


Investors Question and Answers

 
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Source: Company filings    Q1:December  Q2:March  Q3:June  Q4:September
 
Stacey H. Dwyer: We are focused right now on preserving our cash position and maintaining a lot of flexibility and liquidity. We have $585 million in senior notes that come due next January and February, so we are certainly going to be making sure that we have adequate cash to retire those notes.

Eric Landry (Morningstar): Have you got any kind of a target as far as inventory turns going forward?

Donald J. Tomnitz: We have tried to help the investment community analyze that over the years because clearly we do not have any joint ventures and a whole host of other things that we have done.

When you look at inventory turns, you have got to suck out all that excess and do it on an apples and apples basis. We are trying to get too specifically, right now we are at a 5.2-year supply of land and lots, though we would much rather see that at the high-3 and low-4 level.
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