DR Horton Inc. F3Q09 (Qtr End 06/30/09) Earnings Call Transcript

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2009-08-04 13:40:45.0

Tags: J.P. Morgan Chase & Co., Call Transcript, Earnings, Sales Strategy, Sales Force Management, Sales, Seeking Alpha, D. R. Horton Inc.

Question-and-Answer Session

Operator

(Operator Instructions). Your first question comes from Michael Rehaut of JPMorgan. Your line is now open.

Ray Huang - JPMorgan

Hi, guys. This is actually Ray Huang in for Mike. You guys were able to talk about April orders in your last conference call. I was wondering if you had any commentary or color on July business weekend of august.

Don Tomnitz

Ray, we really do not. There is really not any clear trend and really historically from June to July. There is really not any clear historical trend from June to July as well. So, we really don’t have any comment on July at this point.

Ray Huang - JPMorgan

Okay. It’s like a typical seasonal drop off you’re seeing that in July?

Don Tomnitz

As I said, there really isn't a typical seasonal pattern from June to July. Some years are down, some years are up and so it's a little difficult to say, whether we're inline with any seasonal pattern since we really don't discern a pattern in the month of July.

Ray Huang - JPMorgan

I guess in the quarter that just ended, other guys don’t give community comp, but if you guys could give just a sense of the absorption pace per community order pace in the quarter and also where that was last quarter and also the year ago?

Stacey Dwyer

Probably best way to answer that is, as we talked earlier, we had about a 7.5% decrease in our sales this quarter. Our sales communities we estimate to be down in the high teens. So, we did have improved absorption year-over-year and we have increased absorption compared to the March quarter simply because our sales were up 22% sequentially and we certainly not opened that community in the June quarter.

Ray Huang - JPMorgan

Lastly, I guess the east segment was pretty on the year-over-year basis. Is there any particular markets within that that were above average or below average or do you have any color on that?

Don Tomnitz

I think that one Carolinas in particular, Charlotte is strong and I’d also say that Mobile-Pensacola area is strong, but I’ll also say to you that the east is on an aggressive schedule to open more new communities and some of those have come on-line in the most recent quarter, but not nearly as many we as we anticipate going forward.

Stacey Dwyer

 

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