FOR IMMEDIATE RELEASE
For additional information, contact at (214) 981-5000:
Leldon E. Echols, Executive Vice President and Chief Financial Officer
Matthew G. Moyer, Vice President—Investor Relations
http://www.centex.com
CENTEX REPORTS RECORD FOURTH QUARTER
AND FISCAL YEAR RESULTS
Fourth Quarter Earnings from Continuing Operations Grow 38%
Reiterates Fiscal Year 2006 Earnings Guidance of $8.75 to $9.25 per diluted share
DALLAS— April 27, 2005: Centex Corporation(NYSE: CTX)today announced revenues, operating earnings and diluted earnings per share for the quarter ended March 31, 2005, were higher than any quarter in its history. The company also announced record results for the ninth consecutive fiscal year.
Highlights of the quarter ended March 31, 2005 (compared to last year’s fourth quarter):
| | • | Revenues grew 25% to $3.99 billion |
| |
| | • | Earnings from continuing operations grew 38% |
| |
| | • | Earnings per diluted share from continuing operations grew 34% to $2.75 |
| |
| | • | Domestic home building operating earnings increased 49% to $525 million |
| |
| | • | Domestic home sales (orders) rose 9%; backlog rose 21% to 18,589 units |
Highlights of Fiscal Year 2005 (compared to Fiscal Year 2004)
| | • | Revenues grew 24% to $12.86 billion |
| |
| | • | Earnings from continuing operations grew 30% |
| |
| | • | Earnings per diluted share from continuing operations grew 27% to $7.64 |
| |
| | • | Domestic home building operating earnings increased 43% to $1.38 billion |
| |
| | • | Domestic home building operating margin was 14.7%, up 190 basis points |
| |
| | • | Return on Average Stockholders’ Equity exceeded 28% |
“Overall, fiscal 2005 was another outstanding year. Net earnings surpassed $1 billion for the first time in the company’s history and earnings per diluted share from continuing operations grew by 27 percent. At the same time, we set the foundation for continued strong growth into the future with our record backlog and solid land position,” said Tim Eller, Centex Corporation Chairman and CEO. “The fundamental demand drivers of the U.S. homebuilding industry remain favorable, and we will
Centex Corporation, Page 2 of 4
continue to focus our investment in Centex Homes’ growth. For fiscal 2006, we expect to accelerate our neighborhood growth while continuing to expand our operating margins.”
HOME BUILDING
Domestic
Operating earnings from Centex Homes were $525 million for the fourth quarter this year, 49% higher than $353 million for the fourth quarter a year ago. Fiscal 2005’s fourth quarter revenues from Centex Homes were $3.09 billion, 29% higher than $2.40 billion for the same quarter last year.
The 49% increase in operating earnings was achieved on a 5% increase in closings to 10,126 homes in this year’s fourth quarter, as well as a 230 basis point improvement in the operating margin to 17.0%. The operating margin improvement was composed of a 160 basis point improvement in housing gross margin, SG&A leverage and joint venture income. The housing gross margin improvement was driven primarily by an increase in the average selling price of homes delivered and the results of ongoing process improvement initiatives. Additionally, land sales contributed 40 basis points of the 200 basis point gross margin improvement.
New home orders for this year’s fourth quarter were 11,214 homes, 9% above last year’s level. The backlog of homes sold but not delivered at March 31, 2005 was 18,589 units, 21% higher than the backlog at the same time a year ago. On a dollar basis, backlog grew 40% to exceed $5.94 billion.
Fiscal 2005 operating earnings from Centex Homes reached a record $1.38 billion, 43% higher than fiscal 2004 operating earnings of $0.97 billion. Centex Homes revenues of $9.36 billion for fiscal 2005 were 24% higher than last year’s revenues.
International
London-based Fairclough Homes, the international operation of Centex Homes, closed 496 homes during the fourth quarter of fiscal 2005 versus 433 units for the same quarter last year. Operating earnings for the quarter were $29 million, a 58% increase over last year’s fourth quarter operating earnings of $18 million. Operating margin increased 300 basis points to 16.7% in the quarter. This increase reflects an improved pricing environment and increased deliveries from higher-margin neighborhoods.
For fiscal 2005, Fairclough closed 1,563 homes, producing $67 million of operating earnings and posting increases of 1% and 60%, respectively. Operating profit margin increased 390 basis points to 13.3% for the year.
FINANCIAL SERVICES
Operating earnings from Financial Services for the fourth quarter this year were $48 million, a 7% increase from the same quarter last year. Revenues from this segment were $289 million for the fourth quarter this year, 15% above $252 million for the same quarter a year ago.
Fiscal 2005 operating earnings from Financial Services were $204 million, a decrease of 11% compared to $230 million for fiscal 2004. Revenues from Financial Services were $1.11 billion for fiscal 2005, 6% higher than last year’s revenues of $1.05 billion.
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Centex Corporation, page 3 of 4
CTX Mortgage Company
Operating earnings from CTX Mortgage Company totaled $21 million for the fourth quarter of fiscal 2005, 21% lower than $27 million for fiscal 2004’s fourth quarter. Originations from Centex Homes’ closings increased 4% while retail originations fell 18%. CTX Mortgage provided mortgage loans to 73% of Centex Homes’ buyers for the fourth quarter.
Fiscal 2005 operating earnings from CTX Mortgage Company were $96 million compared to $166 million for the same period a year ago.
Centex Home Equity Company
Centex Home Equity Company (CHEC) reported operating earnings of $26 million for the fourth quarter of fiscal 2005, a 50% improvement over $18 million in last year’s fourth quarter. For fiscal year 2005, CHEC’s operating earnings rose 68% to $108 million from $65 million in fiscal 2004. The increased earnings were driven by the growth in the loan portfolio, a higher return on that portfolio and an increase in whole loan sales. CHEC’s loan servicing portfolio on which it earns an interest margin reached $7.91 billion, growing 22% versus last year. The return earned on the servicing portfolio grew 34 basis points to 1.50% for fiscal 2005.
CONSTRUCTION SERVICES
Operating earnings from Construction Services were $7 million for the fourth quarter this fiscal year, versus $4 million for the same quarter last year. The operating margin was 1.8% for this year’s fourth quarter, up 90 basis points from last year’s fourth quarter. New contracts for the quarter were approximately $400 million. For fiscal 2005, Construction Services reported operating earnings of $24 million, 43% more than $16 million in operating earnings in the prior year. Construction Services revenues for fiscal 2005 were $1.74 billion, 9% higher than $1.60 billion in the prior year. For the fourth quarter, Construction Services revenue declined 5% to $407 million. During fiscal 2005, Construction Services was awarded approximately $1.99 billion of new contracts, a 9% increase over $1.82 billion in fiscal 2004. The backlog of uncompleted construction contracts at March 31, 2005 was $2.00 billion, 15% more than $1.75 billion at March 31, 2004.
OUTLOOK
Centex enters fiscal 2006 with the highest year-end backlog of home sales in its history. Based on current positive sales trends and the strength of the backlog, the company is reiterating its earnings per diluted share guidance of $8.75 to $9.25, which would represent its tenth consecutive record year.
Centex’s senior management will conduct a conference call to discuss the fourth quarter and fiscal year 2005 financial results, as well as its outlook for fiscal 2006, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on Thursday, April 28. The conference call, accompanied by a slide presentation, will be webcast simultaneously on the Centex Web site athttp://www.centex.com. A replay of the call, as well as the presentation, will be archived on that site.
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Centex Corporation, page 4 of 4
###
Forward-Looking Statements. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when Centex is discussing its beliefs, estimates or expectations. Such statements include projections, forecasts, and plans and objectives of management for future operations and operating and financial performance, as well as any related assumptions. These statements are not historical facts or guarantees of future performance but instead represent only Centex’s belief at the time the statements were made regarding future events, which are subject to significant risks, uncertainties and other factors, many of which are outside of Centex’s control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. With respect to forward-looking statements relating to the business, operations, assets, liabilities, financial condition or results of operations of Centex, the risks and uncertainties to which these statements are subject include the following: general economic conditions and interest rates; the cyclical and seasonal nature of our businesses; adverse weather conditions; changes in property taxes and energy costs; changes in federal income tax laws and federal mortgage financing programs; governmental regulations; changes in governmental and public policy; changes in economic conditions specific to any one or more of our markets and businesses; competition; availability of land and raw materials; and unexpected operational difficulties. For example, increases in interest rates or decreases in demand for housing on a national or regional basis or increases in the cost or reductions in the supply of suitable land for development, or lumber or other building materials or labor, could affect the revenues or operating earnings of our homebuilding operations. Similarly, increases in interest rates could adversely affect demand for some of the mortgage loans offered by our mortgage finance operations. Finally, changes in national and regional economic conditions and levels of infrastructure and construction spending could adversely affect the results of operations of our construction services operations. These and other risks and uncertainties are described in greater detail in Centex’s most recent Annual Report on Form 10-K for the fiscal year ended March 31, 2004 (including under the captions “Forward-Looking Statements” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), Centex’s subsequent Quarterly Reports on Form 10-Q, as well as recent Current Reports on Form 8-K, which are on file with the SEC and may be obtained free of charge through the website maintained by the SEC at http://www.sec.gov. All forward-looking statements made in this press release are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed in this press release will increase with the passage of time. Centex makes no commitment, and disclaims any duty, to update or revise any forward-looking statement to reflect future events or changes in Centex’s expectations.
NOTE ATTACHMENTS:
(1) Revenues and Earnings by Lines of Business (Quarter and Year)
(2) Condensed Consolidated Balance Sheets
(3) Condensed Consolidated Cash Flows
(4) Supplemental Domestic Home Building Data
(5) Domestic Housing Activity by Geographic Area
(6) Domestic Housing Activity Dollar Values by Geographic Area
(7) Supplemental International Home Building Data
(8) Supplemental Financial Services Data
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Attachment 1
Centex Corporation and Subsidiaries
Revenues and Earnings by Lines of Business
(dollars in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | | | Fiscal Year Ended | |
| | | March 31, | | | March 31, | |
| | | (unaudited) | | | (unaudited) | |
| | | 2005 | | | 2004 (D) | | | Change | | | 2005 | | | 2004 (D) | | | Change | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | |
| Home Building (A) | | $ | 3,263,046 | | | $ | 2,479,582 | | | | 32 | % | | $ | 9,860,998 | | | $ | 7,599,519 | | | | 30 | % |
| Financial Services | | | 289,261 | | | | 252,263 | | | | 15 | % | | | 1,107,206 | | | | 1,047,905 | | | | 6 | % |
| Construction Services | | | 406,690 | | | | 429,724 | | | | (5 | %) | | | 1,738,603 | | | | 1,596,335 | | | | 9 | % |
| Other | | | 31,096 | | | | 31,010 | | | | — | % | | | 152,888 | | | | 119,632 | | | | 28 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 3,990,093 | | | $ | 3,192,579 | | | | 25 | % | | $ | 12,859,695 | | | $ | 10,363,391 | | | | 24 | % |
| | | | | | | | | | | | | | | | | | | | | |
Operating Earnings | | | | | | | | | | | | | | | | | | | | | | | | |
| Home Building (A) | | $ | 553,931 | | | $ | 371,043 | | | | 49 | % | | $ | 1,445,405 | | | $ | 1,005,290 | | | | 44 | % |
| Financial Services | | | 47,531 | | | | 44,549 | | | | 7 | % | | | 204,360 | | | | 230,301 | | | | (11 | %) |
| Construction Services | | | 7,146 | | | | 3,701 | | | | 93 | % | | | 23,524 | | | | 16,413 | | | | 43 | % |
| Other | | | (5,812 | ) | | | 14,596 | | | | (140 | %) | | | 5,566 | | | | 42,458 | | | | (87 | %) |
| | | | | | | | | | | | | | | | | | | | | |
Total Operating Earnings | | | 602,796 | | | | 433,889 | | | | 39 | % | | | 1,678,855 | | | | 1,294,462 | | | | 30 | % |
| Corporate General Expenses | | | (21,136 | ) | | | (34,547 | ) | | | | | | | (82,877 | ) | | | (105,529 | ) | | | | |
| Interest Expense | | | (6,185 | ) | | | (4,499 | ) | | | | | | | (22,209 | ) | | | (39,869 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Earnings from Continuing Operations | | | | | | | | | | | | | | | | | | | | | | | | |
Before Income Taxes | | | 575,475 | | | | 394,843 | | | | 46 | % | | | 1,573,769 | | | | 1,149,064 | | | | 37 | % |
| Income Taxes | | | (205,727 | ) | | | (126,854 | ) | | | | | | | (562,405 | ) | | | (371,933 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Earnings from Continuing Operations | | | 369,748 | | | | 267,989 | | | | 38 | % | | | 1,011,364 | | | | 777,131 | | | | 30 | % |
| Earnings from Discontinued Operations, net (B) | | | — | | | | 32,108 | | | | | | | | — | | | | 63,815 | | | | | |
| Cumulative Effect of Accounting Change (C) | | | — | | | | — | | | | | | | | — | | | | (13,260 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Net Earnings | | $ | 369,748 | | | $ | 300,097 | | | | 23 | % | | $ | 1,011,364 | | | $ | 827,686 | | | | 22 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Earnings Per Share — Basic | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per Share — Continuing Operations | | $ | 2.89 | | | $ | 2.17 | | | | 33 | % | | $ | 8.08 | | | $ | 6.30 | | | | 28 | % |
| Earnings per Share — Discontinued Operations | | | — | | | | 0.26 | | | | | | | | — | | | | 0.52 | | | | | |
| Earnings per Share — Cumulative Effect | | | — | | | | — | | | | | | | | — | | | | (0.11 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Earnings Per Share — Basic | | $ | 2.89 | | | $ | 2.43 | | | | 19 | % | | $ | 8.08 | | | $ | 6.71 | | | | 20 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Earnings Per Share — Diluted | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per Share — Continuing Operations | | $ | 2.75 | | | $ | 2.05 | | | | 34 | % | | $ | 7.64 | | | $ | 6.01 | | | | 27 | % |
| Earnings per Share — Discontinued Operations | | | — | | | | 0.25 | | | | | | | | — | | | | 0.49 | | | | | |
| Earnings per Share — Cumulative Effect | | | — | | | | — | | | | | | | | — | | | | (0.10 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Earnings Per Share — Diluted | | $ | 2.75 | | | $ | 2.30 | | | | 20 | % | | $ | 7.64 | | | $ | 6.40 | | | | 19 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Average Shares Outstanding: | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | | 127,739,654 | | | | 123,525,669 | | | | 3 | % | | | 125,226,596 | | | | 123,382,068 | | | | 1 | % |
| Diluted | | | 134,248,349 | | | | 130,515,294 | | | | 3 | % | | | 132,397,961 | | | | 129,392,821 | | | | 2 | % |
(A) 3333 Holding Corporation and Centex Development Company, L.P. were consolidated into Centex Corporation on February 29, 2004. As a result, beginning March 1, 2004, International Home Building is fully consolidated as a component of Home Building. Centex’s equity in the earnings of International Home Building prior to March 1, 2004 have been reclassified from Investment Real Estate(now in Other) to Home Building. See Attachment 7 for additional International Home Building information.
(B) Includes the operations spun-off in the Centex Construction Products (now known as Eagle Materials Inc.) and Cavco transactions and other discontinued manufactured housing operations.
(C) Represents the cumulative effect of change in accounting resulting from the consolidation of HSF-I effective July 1, 2003.
(D) Certain prior year items have been reclassified to conform to current period classifications.
Attachment 2
Centex Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Dollars in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Centex Corporation and Subsidiaries | | | Centex Corporation* | | | Financial Services | |
| | | March 31, | | | March 31, | | | March 31, | | | March 31, | | | March 31, | | | March 31, | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash - | | | | | | | | | | | | | | | | | | | | | | | | |
| Unrestricted | | $ | 503 | | | $ | 179 | | | $ | 491 | | | $ | 161 | | | $ | 12 | | | $ | 18 | |
| Restricted | | | 378 | | | | 310 | | | | 53 | | | | 50 | | | | 325 | | | | 260 | |
| Receivables - | | | | | | | | | | | | | | | | | | | | | | | | |
| Residential Mortgage Loans Held for Investment | | | 7,914 | | | | 6,498 | | | | — | | | | — | | | | 7,914 | | | | 6,498 | |
| Residential Mortgage Loans Held for Sale | | | 1,775 | | | | 1,820 | | | | — | | | | — | | | | 1,775 | | | | 1,820 | |
| Other Receivables | | | 797 | | | | 669 | | | | 599 | | | | 491 | | | | 198 | | | | 178 | |
| Inventories - | | | | | | | | | | | | | | | | | | | | | | | | |
| Homebuilding | | | 7,072 | | | | 5,105 | | | | 7,072 | | | | 5,105 | | | | — | | | | — | |
| Land Held Under Option Agreements not Owned | | | 457 | | | | 362 | | | | 457 | | | | 362 | | | | — | | | | — | |
| Other | | | 33 | | | | 94 | | | | 27 | | | | 85 | | | | 6 | | | | 9 | |
| Investments | | | 164 | | | | 140 | | | | 736 | | | | 672 | | | | — | | | | — | |
| Property and Equipment, net | | | 162 | | | | 156 | | | | 119 | | | | 115 | | | | 43 | | | | 41 | |
| Goodwill | | | 253 | | | | 255 | | | | 241 | | | | 238 | | | | 12 | | | | 17 | |
| Deferred Charges and Other Assets | | | 503 | | | | 481 | | | | 334 | | | | 239 | | | | 169 | | | | 242 | |
| | | | | | | | | | | | | | | | | | | |
| | | $ | 20,011 | | | $ | 16,069 | | | $ | 10,129 | | | $ | 7,518 | | | $ | 10,454 | | | $ | 9,083 | |
| | | | | | | | | | | | | | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| Accounts Payable and Accrued Liabilities | | $ | 2,304 | | | $ | 1,963 | | | $ | 2,145 | | | $ | 1,715 | | | $ | 114 | | | $ | 264 | |
| Debt | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-Financial Services | | | 3,247 | | | | 2,418 | | | | 3,247 | | | | 2,418 | | | | — | | | | — | |
| Financial Services | | | 9,721 | | | | 8,302 | | | | — | | | | — | | | | 9,721 | | | | 8,302 | |
| Minority Interests | | | 458 | | | | 336 | | | | 456 | | | | 335 | | | | 2 | | | | 1 | |
| Stockholders’ Equity | | | 4,281 | | | | 3,050 | | | | 4,281 | | | | 3,050 | | | | 617 | | | | 516 | |
| | | | | | | | | | | | | | | | | | | |
| | | $ | 20,011 | | | $ | 16,069 | | | $ | 10,129 | | | $ | 7,518 | | | $ | 10,454 | | | $ | 9,083 | |
| | | | | | | | | | | | | | | | | | | |
* In the supplemental data presented above, “Centex Corporation” represents the consolidation of all subsidiaries other than those included in Financial Services. Transactions between Centex Corporation and Financial Services have been eliminated from the Centex Corporation and Subsidiaries balance sheets. We believe that separate disclosure of the consolidating information is useful because: the Financial Services subsidiaries operate in a distinctly different financial environment that generally requires significantly less equity to support their higher debt levels compared to the operations of our other subsidiaries; the Financial Services subsidiaries have structured their financing programs substantially on a stand-alone basis; and Centex Corporation has limited obligations with respect to the indebtedness of its Financial Services subsidiaries. Management uses this information in its financial and strategic planning.
Attachment 3
Centex Corporation and Subsidiaries
Condensed Consolidated Cash Flows
(Dollars in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Centex Corporation and Subsidiaries | | | Centex Corporation* | | | Financial Services | |
| | | For the Fiscal Year Ended March 31, | | | For the Fiscal Year Ended March 31, | | | For the Fiscal Year Ended March 31, | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
Cash Flows — Operating Activities | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Earnings | | $ | 1,011 | | | $ | 828 | | | $ | 1,011 | | | $ | 828 | | | $ | 126 | | | $ | 133 | |
| Adjustments - | | | | | | | | | | | | | | | | | | | | | | | | |
| Depreciation and Amortization | | | 107 | | | | 101 | | | | 89 | | | | 84 | | | | 18 | | | | 17 | |
| Other Noncash Adjustments | | | 36 | | | | 22 | | | | (200 | ) | | | (138 | ) | | | 159 | | | | 102 | |
| Decrease in Loans Held for Sale | | | 44 | | | | 927 | | | | — | | | | — | | | | 44 | | | | 927 | |
| (Increase) Decrease in Inventories | | | (1,880 | ) | | | (1,203 | ) | | | (1,883 | ) | | | (1,203 | ) | | | 3 | | | | — | |
| Other Operating Activities | | | 223 | | | | — | | | | 387 | | | | 81 | | | | (200 | ) | | | (88 | ) |
| | | | | | | | | | | | | | | | | | | |
| | | | (459 | ) | | | 675 | | | | (596 | ) | | | (348 | ) | | | 150 | | | | 1,091 | |
| | | | | | | | | | | | | | | | | | | |
Cash Flows — Investing Activities | | | | | | | | | | | | | | | | | | | | | | | | |
| Increase in Loans Held for Investment | | | (1,515 | ) | | | (1,935 | ) | | | — | | | | — | | | | (1,515 | ) | | | (1,935 | ) |
| Other Investing Activities | | | (8 | ) | | | 38 | | | | 39 | | | | (33 | ) | | | (11 | ) | | | 3 | |
| | | | | | | | | | | | | | | | | | | |
| | | | (1,523 | ) | | | (1,897 | ) | | | 39 | | | | (33 | ) | | | (1,526 | ) | | | (1,932 | ) |
| | | | | | | | | | | | | | | | | | | |
Cash Flows — Financing Activities | | | | | | | | | | | | | | | | | | | | | | | | |
| Increase (Decrease) in Short-Term Debt, net | | | 371 | | | | (1,083 | ) | | | 8 | | | | (25 | ) | | | 363 | | | | (1,058 | ) |
| Issuance of Long-Term Debt, net | | | 1,873 | | | | 2,143 | | | | 817 | | | | 241 | | | | 1,056 | | | | 1,902 | |
| Other Financing Activities | | | 67 | | | | (116 | ) | | | 67 | | | | (116 | ) | | | (49 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | |
| | | | 2,311 | | | | 944 | | | | 892 | | | | 100 | | | | 1,370 | | | | 844 | |
| | | | | | | | | | | | | | | | | | | |
Effect of Exchange Rate on Cash | | | (5 | ) | | | 1 | | | | (5 | ) | | | 1 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | |
| Net Increase (Decrease) in Cash and Cash Equivalents | | | 324 | | | | (277 | ) | | | 330 | | | | (280 | ) | | | (6 | ) | | | 3 | |
| Cash and Cash Equivalents at Beginning of Period | | | 179 | | | | 456 | | | | 161 | | | | 441 | | | | 18 | | | | 15 | |
| | | | | | | | | | | | | | | | | | | |
| Cash and Cash Equivalents at End of Period | | $ | 503 | | | $ | 179 | | | $ | 491 | | | $ | 161 | | | $ | 12 | | | $ | 18 | |
| | | | | | | | | | | | | | | | | | | |
* In the supplemental data presented above, “Centex Corporation” represents the consolidation of all subsidiaries other than those included in Financial Services. Transactions between Centex Corporation and Financial Services have been eliminated from the Centex Corporation and Subsidiaries cash flows. We believe that separate disclosure of the consolidating information is useful because: the Financial Services subsidiaries operate in a distinctly different financial environment that generally requires significantly less equity to support their higher debt levels compared to the operations of our other subsidiaries; the Financial Services subsidiaries have structured their financing programs substantially on a stand-alone basis; and Centex Corporation has limited obligations with respect to the indebtedness of its Financial Services subsidiaries. Management uses this information in its financial and strategic planning.
Attachment 4
Centex Corporation and Subsidiaries
Supplemental Home Building Data — Domestic Operations
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions, except per unit data) | | | | | | | | | | |
| | | Quarter Ended March 31, | | | | | | | Fiscal Year Ended March 31, | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
HOME BUILDING — DOMESTIC | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues — Housing | | $ | 2,909.2 | | | | 100.0 | % | | $ | 2,363.1 | | | | 100.0 | % | | $ | 9,007.1 | | | | 100.0 | % | | $ | 7,360.7 | | | | 100.0 | % |
| Cost of Sales — Housing | | | (2,078.8 | ) | | | (71.5 | %) | | | (1,728.3 | ) | | | (73.1 | %) | | | (6,486.7 | ) | | | (72.0 | %) | | | (5,401.1 | ) | | | (73.4 | %) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Gross Margin — Housing | | | 830.4 | | | | 28.5 | % | | | 634.8 | | | | 26.9 | % | | | 2,520.4 | | | | 28.0 | % | | | 1,959.6 | | | | 26.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues — Land Sales & Other | | | 180.4 | | | | | | | | 36.0 | | | | | | | | 352.6 | | | | | | | | 158.3 | | | | | |
| Cost of Sales — Land Sales & Other | | | (107.3 | ) | | | | | | | (18.0 | ) | | | | | | | (261.4 | ) | | | | | | | (143.2 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Gross Margin — Land Sales & Other | | | 73.1 | | | | | | | | 18.0 | | | | | | | | 91.2 | | | | | | | | 15.1 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Gross Margin | | | 903.5 | | | | 29.2 | % | | | 652.8 | | | | 27.2 | % | | | 2,611.6 | | | | 27.9 | % | | | 1,974.7 | | | | 26.3 | % |
| Selling, General & Administrative | | | (392.9 | ) | | | (12.7 | %) | | | (306.2 | ) | | | (12.8 | %) | | | (1,301.6 | ) | | | (13.9 | %) | | | (1,038.8 | ) | | | (13.8 | %) |
| Other Income | | | 14.3 | | | | 0.5 | % | | | 6.6 | | | | 0.3 | % | | | 68.8 | | | | 0.7 | % | | | 30.0 | | | | 0.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Operating Earnings | | $ | 524.9 | | | | 17.0 | % | | $ | 353.2 | | | | 14.7 | % | | $ | 1,378.8 | | | | 14.7 | % | | $ | 965.9 | | | | 12.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Units Closed | | | 10,126 | | | | | | | | 9,635 | | | | | | | | 33,387 | | | | | | | | 30,358 | | | | | |
| Average Unit Sales Price | | $ | 287,307 | | | | | | | $ | 245,267 | | | | | | | $ | 269,780 | | | | | | | $ | 242,465 | | | | | |
| % Change | | | 17.1 | % | | | | | | | 8.9 | % | | | | | | | 11.3 | % | | | | | | | 10.1 | % | | | | |
| Operating Earnings per Unit | | $ | 51,836 | | | | | | | $ | 36,660 | | | | | | | $ | 41,298 | | | | | | | $ | 31,816 | | | | | |
| % Change | | | 41.4 | % | | | | | | | 36.5 | % | | | | | | | 29.8 | % | | | | | | | 33.2 | % | | | | |
| Average Neighborhoods | | | 613 | | | | | | | | 557 | | | | | | | | 589 | | | | | | | | 558 | | | | | |
| % Change | | | 10.1 | % | | | | | | | 1.1 | % | | | | | | | 5.6 | % | | | | | | | 7.5 | % | | | | |
LOT POSITION — DOMESTIC
| | | | | | | | | | | | | |
| | | As of March 31, | |
| | | 2005 | | | 2004 | | | Change | |
| Lot Owned and Controlled: | | | | | | | | | | | | |
| Lots Owned | | | 96,945 | | | | 77,475 | | | | 25.1 | % |
| Lots Controlled | | | 168,350 | | | | 115,366 | | | | 45.9 | % |
| | | | | | | | | | | |
| Total | | | 265,295 | | | | 192,841 | | | | 37.6 | % |
| | | | | | | | | | | |
Attachment 5
Centex Corporation and Subsidiaries
Supplemental Home Building Data — Domestic Operations
Housing Activity (Units) by Geographic Area
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Closings | |
| | | Quarter Ended March 31, | | | Fiscal Year Ended March 31, | |
| | | 2005 | | | 2004 | | | Change | | | 2005 | | | 2004 | | | Change | |
| Mid-Atlantic | | | 1,839 | | | | 1,502 | | | | 22 | % | | | 5,823 | | | | 5,201 | | | | 12 | % |
| Southeast | | | 1,992 | | | | 1,860 | | | | 7 | % | | | 5,879 | | | | 5,568 | | | | 6 | % |
| Midwest | | | 1,821 | | | | 1,807 | | | | 1 | % | | | 6,712 | | | | 5,801 | | | | 16 | % |
| Southwest | | | 2,816 | | | | 3,073 | | | | (8 | %) | | | 9,158 | | | | 8,708 | | | | 5 | % |
| West Coast | | | 1,658 | | | | 1,393 | | | | 19 | % | | | 5,815 | | | | 5,080 | | | | 14 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | 10,126 | | | | 9,635 | | | | 5 | % | | | 33,387 | | | | 30,358 | | | | 10 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | Sales (Orders) Backlog | |
| | | As of March 31, | |
| | | 2005 | | | 2004 | | | Change | |
| Mid-Atlantic | | | 3,461 | | | | 2,801 | | | | 24 | % |
| Southeast | | | 5,006 | | | | 3,707 | | | | 35 | % |
| Midwest | | | 3,273 | | | | 3,392 | | | | (4 | %) |
| Southwest | | | 3,688 | | | | 2,869 | | | | 29 | % |
| West Coast | | | 3,161 | | | | 2,645 | | | | 20 | % |
| | | | | | | | | | | |
| | | | 18,589 | | | | 15,414 | | | | 21 | % |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Sales (Orders) | |
| | | Quarter Ended March 31, | | | Fiscal Year Ended March 31, | |
| | | 2005 | | | 2004 | | | Change | | | 2005 | | | 2004 | | | Change | |
| Mid-Atlantic | | | 1,883 | | | | 1,732 | | | | 9 | % | | | 6,483 | | | | 5,854 | | | | 11 | % |
| Southeast | | | 2,006 | | | | 2,045 | | | | (2 | %) | | | 7,178 | | | | 6,562 | | | | 9 | % |
| Midwest | | | 2,128 | | | | 2,081 | | | | 2 | % | | | 6,593 | | | | 6,273 | | | | 5 | % |
| Southwest | | | 3,363 | | | | 2,764 | | | | 22 | % | | | 9,977 | | | | 9,319 | | | | 7 | % |
| West Coast | | | 1,834 | | | | 1,652 | | | | 11 | % | | | 6,331 | | | | 5,714 | | | | 11 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | 11,214 | | | | 10,274 | | | | 9 | % | | | 36,562 | | | | 33,722 | | | | 8 | % |
| | | | | | | | | | | | | | | | | | | | | |
Attachment 6
Centex Corporation and Subsidiaries
Supplemental Home Building Data — Domestic Operations
Housing Activity (Values) by Geographic Area
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Housing Revenues - Closings | |
| | | (dollars in millions) | |
| | | Quarter Ended March 31, | | | Fiscal Year Ended March 31, | |
| | | 2005 | | | 2004 | | | Change | | | 2005 | | | 2004 | | | Change | |
| Mid-Atlantic | | $ | 564.2 | | | $ | 425.3 | | | | 33 | % | | $ | 1,700.8 | | | $ | 1,434.3 | | | | 19 | % |
| Southeast | | | 532.8 | | | | 470.4 | | | | 13 | % | | | 1,506.5 | | | | 1,290.1 | | | | 17 | % |
| Midwest | | | 397.4 | | | | 372.3 | | | | 7 | % | | | 1,431.8 | | | | 1,203.4 | | | | 19 | % |
| Southwest | | | 513.0 | | | | 490.3 | | | | 5 | % | | | 1,557.1 | | | | 1,358.4 | | | | 15 | % |
| West Coast | | | 901.8 | | | | 604.8 | | | | 49 | % | | | 2,810.9 | | | | 2,074.5 | | | | 35 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | $ | 2,909.2 | | | $ | 2,363.1 | | | | 23 | % | | $ | 9,007.1 | | | $ | 7,360.7 | | | | 22 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | Sales (Orders) Backlog Value | |
| | | (dollars in millions) | |
| | | As of March 31, | |
| | | 2005 | | | 2004 | | | Change | |
| Mid-Atlantic | | $ | 1,227.3 | | | $ | 914.2 | | | | 34 | % |
| Southeast | | | 1,458.0 | | | | 982.8 | | | | 48 | % |
| Midwest | | | 726.0 | | | | 682.4 | | | | 6 | % |
| Southwest | | | 804.2 | | | | 463.7 | | | | 73 | % |
| West Coast | | | 1,725.9 | | | | 1,188.9 | | | | 45 | % |
| | | | | | | | | | | |
| | | $ | 5,941.4 | | | $ | 4,232.0 | | | | 40 | % |
| | | | | | | | | | | |
Attachment 7
Centex Corporation and Subsidiaries
Supplemental Home Building Data — International Operations
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions, except per unit data) | | | | | | |
| | | Quarter Ended March 31, | | | Fiscal Year Ended March 31, | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
HOME BUILDING — INTERNATIONAL | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues — Housing | | $ | 170.0 | | | | 100.0 | % | | $ | 130.1 | | | | 100.0 | % | | $ | 492.0 | | | | 100.0 | % | | $ | 428.7 | | | | 100.0 | % |
| Cost of Sales — Housing | | | (125.4 | ) | | | (73.8 | %) | | | (95.2 | ) | | | (73.2 | %) | | | (357.9 | ) | | | (72.7 | %) | | | (333.5 | ) | | | (77.8 | %) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Gross Margin — Housing | | | 44.6 | | | | 26.2 | % | | | 34.9 | | | | 26.8 | % | | | 134.1 | | | | 27.3 | % | | | 95.2 | | | | 22.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues — Land Sales & Other | | | 3.4 | | | | | | | | 3.8 | | | | | | | | 9.3 | | | | | | | | 10.3 | | | | | |
| Cost of Sales — Land Sales & Other | | | 1.9 | | | | | | | | (3.7 | ) | | | | | | | (5.5 | ) | | | | | | | (6.2 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Gross Margin — Land Sales & Other | | | 5.3 | | | | | | | | 0.1 | | | | | | | | 3.8 | | | | | | | | 4.1 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Gross Margin | | | 49.9 | | | | 28.8 | % | | | 35.0 | | | | 26.1 | % | | | 137.9 | | | | 27.5 | % | | | 99.3 | | | | 22.6 | % |
| Selling, General & Administrative | | | (21.0 | ) | | | (12.1 | %) | | | (16.7 | ) | | | (12.4 | %) | | | (71.4 | ) | | | (14.2 | %) | | | (57.8 | ) | | | (13.2 | %) |
| Other Income | | | 0.1 | | | | — | % | | | — | | | | — | % | | | 0.1 | | | | — | % | | | — | | | | — | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Operating Earnings | | | 29.0 | | | | 16.7 | % | | | 18.3 | | | | 13.7 | % | | | 66.6 | | | | 13.3 | % | | | 41.5 | | | | 9.4 | % |
| Interest | | | (0.9 | ) | | | (0.5 | %) | | | (0.5 | ) | | | (0.4 | %) | | | (2.9 | ) | | | (0.6 | %) | | | (2.1 | ) | | | (0.4 | %) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings Before Income Taxes | | $ | 28.1 | | | | 16.2 | % | | $ | 17.8 | | | | 13.3 | % | | $ | 63.7 | | | | 12.7 | % | | $ | 39.4 | | | | 9.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Units Closed | | | 496 | | | | | | | | 433 | | | | | | | | 1,563 | | | | | | | | 1,547 | | | | | |
| Unit Sales | | | 419 | | | | | | | | 349 | | | | | | | | 1,456 | | | | | | | | 1,492 | | | | | |
| Plots Owned and Controlled | | | 5,541 | | | | | | | | 5,033 | | | | | | | | 5,541 | | | | | | | | 5,033 | | | | | |
| Average Unit Sales Price | | $ | 342,740 | | | | | | | $ | 300,499 | | | | | | | $ | 314,797 | | | | | | | $ | 277,125 | | | | | |
| % Change | | | 14.1 | % | | | | | | | 26.1 | % | | | | | | | 13.6 | % | | | | | | | 17.5 | % | | | | |
| Operating Earnings per Unit | | $ | 58,552 | | | | | | | $ | 42,296 | | | | | | | $ | 42,602 | | | | | | | $ | 26,840 | | | | | |
| % Change | | | 38.4 | % | | | | | | | 85.5 | % | | | | | | | 58.7 | % | | | | | | | 74.6 | % | | | | |
Attachment 8
Centex Corporation and Subsidiaries
Supplemental Financial Services Data
CTX Mortgage Company
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended March 31, | | | Fiscal Year Ended March 31, | |
| | | 2005 | | | 2004 | | | Change | | | 2005 | | | 2004 | | | Change | |
| Originations | | | | | | | | | | | | | | | | | | | | | | | | |
| Builder | | | 6,829 | | | | 6,558 | | | | 4 | % | | | 22,517 | | | | 20,865 | | | | 8 | % |
| Retail | | | 9,416 | | | | 11,465 | | | | (18 | %) | | | 44,816 | | | | 67,481 | | | | (34 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Total | | | 16,245 | | | | 18,023 | | | | (10 | %) | | | 67,333 | | | | 88,346 | | | | (24 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Applications | | | | | | | | | | | | | | | | | | | | | | | | |
| Builder | | | 7,301 | | | | 7,092 | | | | 3 | % | | | 24,631 | | | | 24,031 | | | | 2 | % |
| Retail | | | 10,421 | | | | 15,057 | | | | (31 | %) | | | 39,848 | | | | 65,514 | | | | (39 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Total | | | 17,722 | | | | 22,149 | | | | (20 | %) | | | 64,479 | | | | 89,545 | | | | (28 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Loan Volume (in billions) | | $ | 3.38 | | | $ | 3.24 | | | | 5 | % | | $ | 13.04 | | | $ | 15.12 | | | | (14 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Average Loan Size | | $ | 208,200 | | | $ | 179,600 | | | | 16 | % | | $ | 193,600 | | | $ | 171,100 | | | | 13 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Operating Profit per Loan | | $ | 1,306 | | | $ | 1,496 | | | | (13 | %) | | $ | 1,425 | | | $ | 1,876 | | | | (24 | %) |
| | | | | | | | | | | | | | | | | | | | | |
Centex Home Equity
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended March 31, | | | Fiscal Year Ended March 31, | |
| | | 2005 | | | 2004 | | | Change | | | 2005 | | | 2004 | | | Change | |
| Originations | | | 9,985 | | | | 8,891 | | | | 12 | % | | | 43,617 | | | | 36,659 | | | | 19 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Applications | | | 103,495 | | | | 91,077 | | | | 14 | % | | | 401,302 | | | | 340,894 | | | | 18 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Loan Volume (in billions) | | $ | 1.21 | | | $ | 1.01 | | | | 20 | % | | $ | 5.28 | | | $ | 3.92 | | | | 35 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Average Loan Size | | $ | 121,100 | | | $ | 114,100 | | | | 6 | % | | $ | 121,000 | | | $ | 106,900 | | | | 13 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Earnings As a % of Average Portfolio Accounting Method Loans | | | 1.35 | % | | | 1.12 | % | | | | | | | 1.50 | % | | | 1.16 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Servicing Portfolio:
| | | | | | | | | | | | | |
| | | As of March 31, | |
| | | 2005 | | | 2004 | | | Change | |
| Number of Loans: | | | | | | | | | | | | |
| Portfolio Accounting Method | | | 83,972 | | | | 76,215 | | | | | |
| Serviced for Others | | | 16,431 | | | | 10,858 | | | | | |
| | | | | | | | | | | |
| Total | | | 100,403 | | | | 87,073 | | | | 15 | % |
| | | | | | | | | | | |
| Servicing Portfolio (in billions): | | | | | | | | | | | | |
| Portfolio Accounting Method | | $ | 7.91 | | | $ | 6.50 | | | | | |
| Serviced for Others | | | 1.40 | | | | 0.64 | | | | | |
| | | | | | | | | | | |
| Total | | $ | 9.31 | | | $ | 7.14 | | | | 30 | % |
| | | | | | | | | | | |
