D.R. Horton, Inc., America’s Builder, Updates Guidance for Impact of New U.S. Tax Law
January 09 2018 - 4:29PM
Business Wire
D.R. Horton, Inc. (NYSE:DHI), America’s Builder, announced today
that the Company expects the Tax Cuts and Jobs Act (“Tax Act”),
which was enacted on December 22, 2017, to have a favorable impact
on its fiscal 2018 results. The Company is revising its previously
issued guidance by lowering the estimate for its fiscal 2018
effective tax rate to approximately 26%, excluding a one-time
charge to reduce its net deferred tax assets in the first quarter.
The change in the corporate tax rate requires a re-measurement of
the Company’s net deferred tax assets in the period in which the
law was enacted. Based on current estimates, the re-measurement
will result in a charge of approximately $115 million in the first
quarter of fiscal 2018 to reduce the Company’s net deferred tax
assets and increase the Company’s income tax expense. No other
changes to the Company’s previous fiscal 2018 guidance are being
made.
The Company’s estimate of the impact from the Tax Act is based
on currently available information and interpretation of its
provisions. The Company will continue to analyze the Tax Act for
its financial statement impact, including re-measurement of
deferred taxes. The Company anticipates finalizing the impact on
its December 31, 2017 financials by the time of its earnings
release scheduled for January 31, 2018.
The Company also currently expects that its effective tax rate
for fiscal 2019 will be approximately 25%.
Conference Call and Webcast Details
As previously announced, the Company will release financial
results for its first quarter ended December 31, 2017 on Wednesday,
January 31, 2018 before the market opens. The Company will host a
conference call that morning at 8:30 a.m. Eastern Time (ET). The
dial-in number is 877-407-8033. Participants are encouraged to call
in five minutes before the call begins (8:25 a.m. ET). The call
will also be webcast from the Company’s website at
investor.drhorton.com.
A replay of the call will be available after 2:00 p.m. ET on
Wednesday, January 31, 2018 at 877-481-4010. When calling, please
reference conference ID #23243. The replay will also be available
from the Company’s website at investor.drhorton.com. The replay
will be available through midnight ET on February 7, 2018.
About D.R. Horton, Inc.
D.R. Horton, Inc., America’s Builder, has been the largest
homebuilder by volume in the United States for sixteen consecutive
years. Founded in 1978 in Fort Worth, Texas, D.R. Horton has
operations in 79 markets in 26 states across the United States and
closed 45,751 homes in the twelve-month period ended September 30,
2017. The Company is engaged in the construction and sale of
high-quality homes through its diverse brand portfolio that
includes D.R. Horton, Emerald Homes, Express Homes and Freedom
Homes ranging from $100,000 to over $1,000,000. D.R. Horton also
provides mortgage financing and title services for homebuyers
through its mortgage and title subsidiaries.
Forward-Looking Statements
Portions of this document may constitute “forward-looking
statements” as defined by the Private Securities Litigation Reform
Act of 1995. Although D.R. Horton believes any such statements are
based on reasonable assumptions, there is no assurance that actual
outcomes will not be materially different. All forward-looking
statements are based upon information available to D.R. Horton on
the date this release was issued. D.R. Horton does not undertake
any obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. Forward-looking statements in this release include
that the Company expects the Tax Cuts and Jobs Act (“Tax Act”),
which was enacted on December 22, 2017, to have a favorable impact
on its fiscal 2018 results; the Company is revising its previously
issued guidance by lowering the estimate for its fiscal 2018
effective tax rate to approximately 26%, excluding a one-time
charge to reduce its net deferred tax assets in the first quarter;
based on current estimates, the re-measurement will result in a
charge of approximately $115 million in the first quarter of fiscal
2018 to reduce the Company’s net deferred tax assets and increase
the Company’s income tax expense; and the Company also currently
expects that its effective tax rate for fiscal 2019 will be
approximately 25%. The forward-looking statements also include that
the Company’s estimate of the impact from the Tax Act is based on
currently available information and interpretation of its
provisions; the Company will continue to analyze the Tax Act for
its financial statement impact, including re-measurement of
deferred taxes; and the Company anticipates finalizing the impact
on its December 31, 2017 financials by the time of its earnings
release scheduled for January 31, 2018.
Factors that may cause the actual results to be materially
different from the future results expressed by the forward-looking
statements include, but are not limited to: the cyclical nature of
the homebuilding industry and changes in economic, real estate and
other conditions; constriction of the credit markets, which could
limit our ability to access capital and increase our costs of
capital; reductions in the availability of mortgage financing
provided by government agencies, changes in government financing
programs, a decrease in our ability to sell mortgage loans on
attractive terms or an increase in mortgage interest rates; the
risks associated with our land and lot inventory; our ability to
effect our growth strategies, acquisitions or investments
successfully; home warranty and construction defect claims; the
effects of a health and safety incident; the effects of negative
publicity; supply shortages and other risks of acquiring land,
building materials and skilled labor; the impact of an
inflationary, deflationary or higher interest rate environment;
reductions in the availability of performance bonds; increases in
the costs of owning a home; the effects of governmental regulations
and environmental matters on our homebuilding operations; the
effects of governmental regulations on our financial services
operations; our significant debt and our ability to comply with
related debt covenants, restrictions and limitations; competitive
conditions within the homebuilding and financial services
industries; the effects of the loss of key personnel; and
information technology failures and data security breaches.
Additional information about issues that could lead to material
changes in performance is contained in D.R. Horton’s annual report
on Form 10-K which is filed with the Securities and Exchange
Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20180109006752/en/
D.R. Horton, Inc.Jessica Hansen, 817-390-8200Vice President of
Investor RelationsInvestorRelations@drhorton.com
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