Dallas, Texas 05/15/2014 (FINANCIALSTRENDS) – D.R. Horton, Inc. (NYSE:DHI) surged on news that the company has acquired the homebuilding operations of Atlanta’s largest builder Crown Communities. The stock’s gain solidifies its position above the $23 level following the bump it got after the quarterly financial results were released last month on April 24.
Homebuilding Division of Atlanta’s Crown Communities Acquired by D.R. Horton
The homebuilding operation of Crown Communities, which builds not just in Georgia, but also in South Carolina and eastern Alabama, has been acquired by D.R. Horton. The assets that come with the acquisition include 2,350 lots, 640 homes already in inventory, and 420 homes that have been sold. The deal also gives the company a chance to exercise options for another 3,400 lots.
Statement by D.R. Horton Chairman Donald R. Horton
D.R. Horton Chairman of the Board Donald R. Horton said that, “We are excited about combining the two largest builders in the Atlanta area to establish double-digit market share for D.R. Horton. The acquisition also adds the Augusta, GA and Spartanburg, SC markets to our expansive geographic footprint, while strengthening our presence in Greenville and Columbia, SC. We believe the combined D.R. Horton and Crown team will be a strong platform for further growth in these dynamic markets in the Southeast.”
D.R. Horton Second Quarter Fiscal 2014 Financial Results
Last month on April 24, D.R. Horton produced a stellar quarterly financial and operational update. The company reported that net income for the second quarter of FY 2014 increased 18% to $131 million, as compared to the same quarter in FY 2013. Diluted EPS for the second quarter FT 2014 likewise increased 19% to $0.38 per share.
Net sales orders increased 20% in value to $2.4 billion during the second quarter, and 9% in terms of the number of homes which jumped to 8,569. Their sales order backlog increased 18% in value to $2.8 billion and 5% in homes to 10,059.