D.R. Horton turns in strong fourth quarter
National home builder D.R. Horton reported revenue for its fourth fiscal quarter 2012 of $1.3 billion, a 21% increase from $1.1 billion in the same quarter of 2011. Homes closed in the quarter increased 12% to 5,575, compared with 4,987 homes a year ago.
Net income for the fourth quarter, which ended Sept. 30, was $100.1 million, compared with $35.7 million in the fourth quarter of 2011.
Net sales orders for the fourth quarter increased 24% to 5,276 homes from 4,241 homes in the year ago quarter and the value of net sales orders increased 35% to $1.3 billion from $0.9 billion. The Fort Worth, Texas based company’s cancellation rate for the fourth quarter of fiscal 2012 was 27%. Net sales orders for fiscal 2012 increased 21% to 21,048 homes from 17,421 homes in fiscal 2011, and the value of net sales orders increased 29% to $4.8 billion from $3.7 billion.
D.R. Horton’s sales order backlog of homes under contract at Sept. 30, 2012 increased 49% to 7,240 homes from 4,854 homes at Sept. 30, 2011. The value of the backlog increased 61% to $1.7 billion at Sept. 30, 2012 from $1.0 billion a year ago.
For the fiscal year 2012, net income increased to $956.3 million, which included a tax benefit of $713.4 million, primarily due to a reduction of the company’s valuation allowance for its deferred tax asset. Net income for fiscal 2011 was $71.8 million, which included a tax benefit of $59.7 million. Home-building revenue for fiscal 2012 increased 19% to $4.2 billion from $3.5 billion in fiscal 2011. Homes closed in fiscal 2012 increased 13% to 18,890 homes, compared with 16,695 homes in fiscal 2011.
Donald R. Horton, chairman of the board, said in a prepared statement: “Our fiscal 2012 financial results reflect continued improvement in the housing market and in our company’s performance. As our operating metrics and demand for homes in most of our markets have improved, we have increased our investments in homes, finished lots, land and land development. Our increased investments include the acquisition of the home-building assets of Breland Homes during the quarter.
“We are positioned for a strong start to fiscal 2013, with our highest year-end backlog since fiscal 2007. We have continued to see strong sales demand through October and into November. With 13,000 homes in inventory and 60,000 finished lots controlled, we have the home and lot position to continue to grow our market share and meet increasing customer demand.”
Building industry analyst Alex Barron of the Housing Research Center, interviewed in the Wall Street Journal on Nov. 12, noted that D.R. Horton “has cornered the entry-level market,” which makes its homes accessible to more consumers. “They are now starting to expand into some B and C markets earlier than others, which will add to their growth,” Barron said.
D.R. Horton has operations in 77 markets in 26 states in the East, Midwest, Southeast, South Central, Southwest and West regions of the U.S. Based on its 18,890 homes closed during its fiscal year ended Sept. 30, 2012, the company is claiming the title of “the largest homebuilder in the United States.”
Kuiken Brothers hosts New Jersey expo
The parking lot of the Sheraton Crossroads hotel in Mahwah, N.J., was full of pickup trucks sporting the names and numbers of builders and contractors. More than 1,400 builders and contractors descended on the hotel for the Kuiken Brothers Product Expo.
Kuiken Brothers, which is celebrating its 100th year as a New Jersey lumberyard and building products dealer, hosts the product expo every other year.
"It’s a relationship-building exercise with our customers," said Nick Kuiken, VP of the pro dealer. "To be a resource for them and be able to work together and provide them information that our vendors can provide through us and ultimately be there to serve them."
Among the vendors were Andersen Windows, Marvin Windows, Trex Decking, ThermaTru Doors, Russin Lumber, Masonite, Kleer Lumber and Perennial Wood.
The event took place as parts of New Jersey continue to reel from hurricane damage. In fact, the event also served as a staging area for out-of-state power crews who drove in to offer assistance.
"We’ve spoken to customers, and we’re continuing to say that we’re going to be able to service them wherever their project is and whatever they need,” said Nick Kuiken. “And we’re continuing to talk to the vendors along the way and make sure we have the products they need."
According to Kuiken Brothers president Doug Kuiken, the rebuilding of New Jersey will take time.
"My personal opinion is there is a lot of rebuilding to be done, not so much up here but in the coastal areas of New Jersey,” he said. “But it’s not going to happen overnight. There’s a lot of cleanup that has to be done, and also we’re coming into the heart of the winter coming up — not a whole lot is going to happen then.”
He added: “We’re optimistic. What will be more impactful will be a better housing economy in general, not just what happened from a storm.”
ABC Supply names 26 new managing partners
Exterior building products distributor ABC Supply has promoted 26 branch managers from around the country to the position of managing partner. In their new positions, the managing partners will continue to oversee their respective branches while taking on additional responsibilities. They have become members of ABC Supply’s National Branch Advisory Board, which advises senior management on a wide range of topics, including strategic initiatives, branch expansion, product development, technology, branch operation and company policy.
To be selected for the managing partner program, the managers met stringent criteria in the areas of customer satisfaction, associate development, improvement in branch performance, safety compliance and excellence in overall business practices
The new managing partners are: Raymond Ace of Warminster, Pa.; Jeffrey Anderson of Monrovia, Calif.; John Baratta of Stratford, Conn.; Todd Bardell of Freeport, Ill.; Matt Bowen of Harrisburg, Pa.; Tim Bowen of Stanton, Del.; Rick Desrochers of Avon, Mass.; Jeff Faulkner of Oklahoma City; Chris Flatley of Grand Rapids, Mich.; Chad Jenkins of Collinsville, Ill.; Eric LaBenz of Omaha, Neb.; Joe Mays of Riverdale, N.J.; Joshua McGrath of Woburn, Mass.; Jason McKinley of Mesa, Ariz.; Bryan Morris of Kansas City, Kan.; TJ Neil of Denver; Gregory Oechsle of Rochester, N.Y.; Giovanni Petrole of Plainfield, N.J.; Connie Prevatt of Fort Myers, Fla.; Scott Roller of Tampa, Fla.; Teressa Schaafsma of Toledo, Ohio; Steve Shearer of Fort Lauderdale, Fla.; Michael Stanley of Addison, Ill.; Barry Talbert of Winston-Salem, N.C.; Matthew Tobin of Chesapeake, Va.; and Andrew Wroten of Jarvisburg, N.C.
The new managing partners continue to oversee their respective branches while taking on additional responsibilities. They have become members of ABC Supply’s National Branch Advisory Board, which advises senior management on a wide range of topics, including strategic initiatives, branch expansion, product development, technology, branch operation and company policy.
To be selected for the managing partner program, these managers met stringent criteria in the areas of customer satisfaction, associate development, improvement in branch performance, safety compliance and excellence in overall business practices.
“These 26 branch managers have demonstrated outstanding leadership skills and a solid commitment to their teams, customers and communities, and we’re proud to recognize them for their all-around efforts,” said David Luck, ABC Supply’s CEO and president. “As managing partners, these individuals have key roles in our continuous improvement efforts. They serve as vital conduits of information about day-to-day operations in our branches, what is working well, and where our branches need new or improved tools and support.”
Based in Beloit, Wis., ABC Supply operates more than 450 branches in 45 states and is the largest wholesale distributor of roofing in the United States and one of the nation’s largest distributors of siding, windows and other select exterior building products.