Texas-based homebuilder D.R. Horton Inc. reported net income of $35.7 million, or 11 cents per share, in the fiscal fourth quarter ending Sept. 30, up from a net loss of $8.9 million, or 3 cents per share, in 2010.
The quarter included $12.8 million in pre-tax costs for inventory and land, down from $30.8 million in costs last year. Homebuilding revenue was $1.1 billion, up from $925.7 million in 2010, and D.R. Horton sold 4,987 homes in the quarter, up from 4,281 last year.
D.R. Horton will issue a quarterly dividend of 3.75 cents per share.
The company ended the quarter with $1 billion in homebuilding cash and marketable securities.
For the fiscal year ending Sept. 30, the builder had net income of $71.8 million, or 23 cents per share, which included $45.4 million in pre-tax expenses for inventory and land, and a tax benefit of $59.7 million. During the year, D.R. Horton had net income of $245.1 million, or 77 cents per share, including $64.7 million in pre-tax charges. D.R. Horton sold 17,421 homes for $3.7 billion, down from 19,375 homes for $4 billion last year.
Our strategy to open new communities for first-time and move-up buyers, improve gross margins, adjust our overhead and reduce interest expense led to our second consecutive year of profitability, despite continued challenging market conditions, said Donald Horton, chairman of the company, in a statement. Positive sales comparisons in our third and fourth quarters contributed to an 18 percent increase in our sales order backlog, positioning us for a stronger start to fiscal 2012.
The company will continue to control construction costs and inventory levels, while maintaining a strong balance sheet and liquidity, Horton said.
Shares of the company were trading around $11.44 on Friday morning.