D.R. Horton, Inc. (NYSE:DHI), America's Builder, reported that net income per common share attributable to D.R. Horton for its third fiscal quarter ended June 30, 2021 increased 78% to $3.06 per diluted share compared to $1.72 per diluted share in the same quarter of fiscal 2020. Net income attributable to D.R. Horton in the third quarter of fiscal 2021 increased 77% to $1.1 billion compared to $630.7 million in the same quarter of fiscal 2020. Homebuilding revenue for the third quarter of fiscal 2021 increased 35% to $7.1 billion from $5.2 billion in the same quarter of fiscal 2020. Homes closed in the quarter increased 22% to 21,588 homes compared to 17,642 homes closed in the same quarter of fiscal 2020.
For the nine months ended June 30, 2021, net income per common share attributable to D.R. Horton increased 85% to $7.73 per diluted share compared to $4.17 per diluted share in the same period of fiscal 2020. Net income attributable to D.R. Horton for the nine months ended June 30, 2021 increased 84% to $2.8 billion compared to $1.5 billion in the same period of fiscal 2020. Homebuilding revenue for the first nine months of fiscal 2021 increased 41% to $19.0 billion from $13.5 billion in the same period of fiscal 2020. Homes closed in the first nine months of fiscal 2021 increased 33% to 60,028 homes compared to 45,140 homes closed in the same period of fiscal 2020.
Net sales orders for the third quarter ended June 30, 2021 decreased 17% to 17,952 homes and increased 2% in value to $6.4 billion compared to 21,519 homes and $6.3 billion in the same quarter of the prior year. The Company's cancellation rate (cancelled sales orders divided by gross sales orders) for the third quarter of fiscal 2021 was 17% compared to 22% in the prior year quarter. Net sales orders for the first nine months of fiscal 2021 increased 20% to 65,429 homes and 33% in value to $21.7 billion compared to 54,732 homes and $16.3 billion in the same period of fiscal 2020. The Company's sales order backlog of homes under contract at June 30, 2021 increased 39% to 32,209 homes and 57% in value to $11.0 billion compared to 23,205 homes and $7.0 billion at June 30, 2020.
At June 30, 2021, the Company had 47,300 homes in inventory, of which 15,400 were unsold. 500 of the Company's unsold homes at June 30, 2021 were completed. The Company's homebuilding land and lot portfolio totaled 517,100 lots at the end of the quarter, of which 24% were owned and 76% were controlled through land and lot purchase contracts.
The Company's return on equity (ROE) was 29.5% for the trailing twelve months ended June 30, 2021, and homebuilding return on inventory (ROI) was 34.9% for the same period. ROE is calculated as net income attributable to D.R. Horton for the trailing twelve months divided by average stockholders' equity, where average stockholders' equity is the sum of ending stockholders' equity balances of the trailing five quarters divided by five. Homebuilding ROI is calculated as homebuilding pre-tax income for the trailing twelve months divided by average inventory, where average inventory is the sum of ending homebuilding inventory balances for the trailing five quarters divided by five.
The Company ended the third quarter with $1.7 billion of unrestricted homebuilding cash and $2.0 billion of available capacity on its revolving credit facility for total homebuilding liquidity of $3.7 billion. Homebuilding debt at June 30, 2021 totaled $2.6 billion. The Company's homebuilding debt to total capital ratio at June 30, 2021 was 16.0%. Homebuilding debt to total capital consists of homebuilding notes payable divided by stockholders' equity plus homebuilding notes payable.
Donald R. Horton, Chairman of the Board, said, 'The D.R. Horton team delivered outstanding results in the third fiscal quarter of 2021, highlighted by EPS increasing 78% to $3.06 per diluted share. Our consolidated pre-tax income increased 81% to $1.4 billion on a 35% increase in revenues to $7.3 billion and a 490 basis point increase in our pre-tax profit margin to 19.4%. These results reflect our experienced teams and production capabilities, industry-leading market share, broad geographic footprint and diverse product offerings across multiple brands.
'Housing market conditions remain very robust, with homebuyer demand exceeding our current capacity to deliver homes across all of our markets. As our top priority is to consistently fulfill our commitments to our homebuyers, we have slowed our home sales pace to more closely align to our current production levels, while building out the infrastructure needed to support a higher level of home starts. We are also selling homes later in the construction cycle when we can better ensure the certainty of the home close date for our homebuyers. After starting 22,600 homes during the quarter, our homes in inventory at June 30, 2021 increased 44% from a year ago to 47,300 homes, positioning us to finish fiscal 2021 strong and produce double-digit volume growth in fiscal 2022.
'We remain focused on maximizing returns and improving capital efficiency in each of our communities while increasing our market share. Our strong balance sheet, liquidity and low leverage provide us with significant financial flexibility. We plan to maintain our disciplined approach to investing capital to enhance the long-term value of our company, including returning capital to our shareholders through both dividends and share repurchases on a consistent basis.'
About D.R. Horton, Inc.
D.R. Horton, Inc., America's Builder, has been the largest homebuilder by volume in the United States since 2002. Founded in 1978 in Fort Worth, Texas, D.R. Horton has operations in 96 markets in 30 states across the United States and closed 80,276 homes in the twelve-month period ended June 30, 2021. 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 with sales prices ranging from $150,000 to over $1,000,000. D.R. Horton also provides mortgage financing, title services and insurance agency services for homebuyers through its mortgage, title and insurance 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 as our top priority is to consistently fulfill our commitments to our homebuyers, we have slowed our home sales pace to more closely align to our current production levels, while building out the infrastructure needed to support a higher level of home starts; we are also selling homes later in the construction cycle when we can better ensure the certainty of the home close date for our homebuyers; and that after starting 22,600 homes during the quarter, our homes in inventory at June 30, 2021 increased 44% from a year ago to 47,300 homes, positioning us to finish fiscal 2021 strong and produce double-digit volume growth in fiscal 2022. The forward-looking statements also include that we remain focused on maximizing returns and improving capital efficiency in each of our communities while increasing our market share; our strong balance sheet, liquidity and low leverage provide us with significant financial flexibility; we plan to maintain our disciplined approach to investing capital to enhance the long-term value of our company, including returning capital to our shareholders through both dividends and share repurchases on a consistent basis; and all commentary in the Guidance section.
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 effects of public health issues such as a major epidemic or pandemic, including the impact of COVID-19 on the economy and our businesses; the cyclical nature of the homebuilding and lot development industries and changes in economic, real estate and other conditions; constriction of the credit and public capital 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; the impact of an inflationary, deflationary or higher interest rate environment; home warranty and construction defect claims; the effects of health and safety incidents; 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 effects of governmental regulations and environmental matters on our homebuilding and land development operations; the effects of governmental regulations on our financial services operations; competitive conditions within the homebuilding, lot development and financial services industries; our ability to manage and service our debt and comply with related debt covenants, restrictions and limitations; the effects of negative publicity; the effects of the loss of key personnel; and information technology failures, data security breaches and our ability to satisfy privacy and data protection laws and regulations. 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 its most recent quarterly report on Form 10-Q, both of which are filed with the Securities and Exchange Commission.
Contact:
Huntsville
415-H Church Street NW
Suite 202
Huntsville, AL 35801
Main: 256-513-8600
Fax: 866-384-2568
DR HORTON 
