D. R. Horton (DHI) Announces Acquisition of Wilson Parker Homes
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D.R. Horton, Inc. (NYSE: DHI) announced the acquisition of Wilson Parker Homes (“Wilson Parker”), which operates in Atlanta and Augusta, Georgia; Raleigh, North Carolina; Columbia, South Carolina and Phoenix, Arizona. The homebuilding assets acquired include approximately 490 lots, 390 homes in inventory and 300 homes in sales order backlog, the majority of which relate to Wilson Parker’s Atlanta operations. D.R. Horton also acquired control of approximately 1,850 lots through option contracts. For the twelve months ended June 30, 2016, Wilson Parker closed 906 homes ($201 million in revenue) with an average home size of approximately 2,700 square feet and an average sales price of $222,000. D.R. Horton expects to pay approximately $90 million in cash for the purchase.
Donald R. Horton, Chairman of the Board, said, “We welcome Wilson Parker Homes to the D.R. Horton family. Their well-established lot position makes them a great fit as we continue to expand our presence in the greater Atlanta area. This acquisition will further expand D.R. Horton’s industry-leading market share in Atlanta to greater than 20% in 2016, in addition to improving our market share in Augusta, Raleigh and Phoenix.”
D.R. Horton, Inc., America’s Builder, has been the largest homebuilder by volume in the United States for fourteen consecutive years. Founded in 1978 in Fort Worth, Texas, D.R. Horton has operations in 78 markets in 26 states across the United States and closed 38,638 homes in the twelve-month period ended June 30, 2016. The Company is engaged in the construction and sale of high-quality homes through its diverse brand portfolio that includes D.R. Horton, Express Homes, Freedom Homes and Emerald Homes with sales prices 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.
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 D.R. Horton expects to pay approximately $90 million in cash for the purchase. The forward-looking statements also include that Wilson Parker’s well-established lot position makes them a great fit as we continue to expand our presence in the greater Atlanta area and that this acquisition will further expand D.R. Horton’s industry-leading market share in Atlanta to greater than 20% in 2016, in addition to improving our market share in Augusta, Raleigh and Phoenix.
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: potential deterioration in homebuilding industry conditions or general economic conditions; 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 and the liquidity provided by government-sponsored enterprises, the effects of government 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; home warranty and construction defect claims; supply shortages and other risks of acquiring land, building materials and skilled labor; reductions in the availability of performance bonds; increases in the costs of owning a home; the impact of an inflationary, deflationary or higher interest rate environment; the effects of governmental regulations and environmental matters on our homebuilding operations; the effects of governmental regulation on our financial services operations; our substantial debt and our ability to comply with related debt covenants, restrictions and limitations; competitive conditions within the homebuilding and financial services industries; our ability to effect our growth strategies or acquisitions successfully; our ability to realize the full amount of our deferred income tax assets; the effects of the loss of key personnel; the effects of negative publicity; 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 and our most recent quarterly report on Form 10-Q, both of which are filed with the Securities and Exchange Commission.
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