DR Horton FY 4Q16 Earnings Call Notes

D.R. Horton (DHI) Q4 2016 Results

David V. Auld – D.R. Horton, Inc.

Michael J. Murray – D.R. Horton, Inc.

Feel good about October sales

Stephen, with regard to our October sales, we feel really good about our October sales. We were up over the prior year, in line with where we thought we’d be, and it’s definitely supporting the outlook we have for the year, in terms of underlying market factors, we’re not seeing significant changes. We continue to see both in looking at the numbers as well as talking to field, visiting the field operations, continued strong demand across the brands, and we’re not in any way alarmed. We’re in fact very encouraged and positive about the way 2017 looks and our positioning for 2017.

Bill W. Wheat – D.R. Horton, Inc.

Sales in Texas still strong

Overall, Texas has been strong for several years now, and especially, Dallas Fort Worth area certainly stands out, continues to be a very strong level. Certainly, the growth rate has moderated versus where we were, but still maintaining at a very strong level. Our sales in Houston, the second largest in Texas, was up year-over-year. So we’ve continued to see that at a very strong level, as we continue to move back down the price curve and making sure that we’re staying at an affordable level in the Houston market. Austin, San Antonio, the other two major markets also just very solid consistent results, and when you’re comparing versus where those cities and where the state of Texas was last year, that’s at a very strong level of performance.

Only modest loosening in the mortgage market

“To the extent there’s been any loosening, it’s been very modest, really similar to what we said over the last couple of years. Any loosening has been very modest. Nothing that’s moved the needle significantly in the market, but we would certainly expect that over time, probably, we continue to see a little bit more loosening, as the economy improves, as the mortgage market continues to improve.”