Centex 8-K Results of Operations and Financial Condition

Exhibit 99.1

	www.centex.com P.O. Box 199000 Dallas, Texas 75219-9000 2728 North Harwood Dallas, Texas 75201-1516 Phone: (214) 981-5000
N e w s R e l e a s e

FOR IMMEDIATE RELEASE

For additional information, contact at (214) 981-5000:
Matthew G. Moyer, Vice President – Investor Relations
Ken Smalling, Director – External Communications
http://www.centex.com

CENTEX REPORTS THIRD QUARTER RESULTS

DALLAS— January 23, 2007: Centex Corporation(NYSE: CTX), today reported financial results for its third fiscal quarter ended December 31, 2006.

Highlights of the quarter ended December 31, 2006 (compared to last year’s third quarter):

• Total revenues decreased 7% to $3.28 billion

• Home closings decreased 12% to 8,360

• Housing gross margin decreased 990 bp to 19.7%

• Loss from continuing operations was $1.96 per diluted share

• Unit backlog declined 32% on a decrease in sales (orders) of 24%

     Tim Eller, Centex Corporation chairman and CEO, said, “This was certainly a challenging quarter. But our aggressiveness in responding to the current housing environment is showing positive tangible results in our operations. In the quarter we produced positive cash flow while making reductions in lots owned and controlled. Moving forward, we’re focused on generating cash, reducing costs and strengthening our balance sheet so we are well positioned when market conditions improve.”

HOME BUILDING

     Fiscal 2007’s third quarter revenues were $2.59 billion, 14% lower than the same quarter last year. Home building reported an operating loss of $292 million for the quarter, after the write off of $138 million of option deposits and land pre-acquisition costs and $297 million of land valuation adjustments, including $97 million from joint ventures. Housing operating earnings (housing revenues less housing cost of sales and SG&A) were $76 million, driven lower by a 12% decrease in closings to 8,360 homes and increased sales incentives. The margin from housing operations was 3.0% in this year’s third quarter. The home building operating margin for the quarter, as reported, was a negative 11.3%, primarily a result of the land valuation adjustments.

     For the current nine months, revenues were $7.90 billion, 5% lower than the same period last year. Reported home building operating earnings were $114 million for the nine-month period this year, 91% below the year-ago period.

Centex Corporation, Page 2 of 3

OTHER BUSINESSES

Financial Services

     Operating earnings from Financial Services totaled $16 million for the third quarter of fiscal 2007, 21% lower than the same quarter a year ago. CTX Mortgage originated loans for 80% of Centex Homes’ buyers during the third quarter, up 5 percentage points versus last year’s third quarter. Centex’s Financial Services operations provide Centex home buyers with a streamlined home-closing and settlement process, key to ensuring customer satisfaction and quality.

Construction Services

     Operating earnings from Construction Services were $11 million for the third quarter this year, resulting in an operating margin of 1.8%, up 20 basis points from last year’s third quarter. New contracts for the quarter were approximately $585 million, up 5% from last year’s third quarter, increasing the backlog of uncompleted construction contracts at December 31, 2006 to $2.94 billion.

OUTLOOK

     Taking into consideration its current backlog and the uncertainty of the current housing market conditions, Centex’s full fiscal year 2007 earnings guidance is now approximately $0.25 per fully diluted share from continuing operations. This guidance is inclusive of about $3.50 per share of land inventory adjustments and option walk-away costs as well as an approximately $0.50 per share increase in the company’s tax reserve. Centex’s guidance for its fourth fiscal quarter ending March 31, 2007 is for approximately break-even earnings from continuing operations. This guidance includes an estimate that there will be approximately $0.65 per share of option walk-away costs.

NON-GAAP FINANCIAL MEASURES

     Explanations of non-GAAP financial measures used in this press release and the accompanying attachments, and reconciliations of the non-GAAP financial measures to the comparable GAAP financial measures, are given in the applicable attachments.

     Centex’s senior management will conduct a conference call to discuss the third quarter fiscal year 2007 financial results at 10 a.m. Eastern Time (9 a.m. Central Time) on Wednesday, January 24. 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.

# # #

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. These 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, 2006 (including under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), as well as recent Quarterly Reports on Form 10-Q and Current

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Centex Corporation, Page 3 of 3

Reports on form 8-K, which are on file with the SEC and may be obtained free of charge through the Web site maintained by the SEC at http://www.sec.gov. The factors discussed in these reports include, but are not limited to, changes in national or regional economic or business conditions, including employment levels and interest rates, competition, customer cancellations, shortages or price changes in raw materials or labor, and other factors that could affect demand for our homes, mortgage loans or construction services or the profitability of our operations. 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
(2) Condensed Consolidated Balance Sheets
(3) Condensed Consolidated Cash Flows
(4) Supplemental Home Building Data
(5) Housing Activity by Geographic Area
(6) Housing Activity Dollar Values by Geographic Area
(7) Supplemental Financial Services Data
(8) Supplemental Financial Data
(9) Reconciliation of Housing/Home Building Operating Earnings

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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									Nine Months Ended
	December 31,									December 31,
	(unaudited)									(unaudited)
	2006			2005 (B)			Change			2006			2005 (B)			Change
Revenues
Home Building	$	2,587,251		$	3,003,650			(14	%)	$	7,895,135		$	8,291,236			(5	%)
Financial Services (A)		107,577			112,855			(5	%)		350,896			343,725			2	%
Construction Services		600,721			402,927			49	%		1,648,357			1,160,904			42	%
Other (Including Intersegment Eliminations)		(11,099	)		5,713			(294	%)		(13,724	)		53,570			(126	%)
Total	$	3,284,450		$	3,525,145			(7	%)	$	9,880,664		$	9,849,435			—	%
Operating Earnings (Loss)
Home Building	$	(292,181	)	$	504,923			(158	%)	$	113,664		$	1,304,463			(91	%)
Financial Services (A)		16,496			21,000			(21	%)		65,747			63,543			3	%
Construction Services		10,650			6,466			65	%		27,498			13,192			108	%
Other (Including Intersegment Eliminations)		(655	)		(2,558	)		74	%		(2,931	)		(8,206	)		64	%
Total Operating Earnings (Loss)		(265,690	)		529,831			(150	%)		203,978			1,372,992			(85	%)
Corporate General Expenses		(22,600	)		(26,775	)					(67,575	)		(70,935	)
Interest Expense		—			(3,009	)					—			(8,705	)
Earnings (Loss) from Continuing Operations Before Income Taxes		(288,290	)		500,047			(158	%)		136,403			1,293,352			(89	%)
Income Taxes		52,910			(186,835	)					(109,738	)		(448,102	)
Earnings (Loss) from Continuing Operations		(235,380	)		313,212			(175	%)		26,665			845,250			(97	%)
Earnings from Discontinued Operations, net (A)		7,234			16,132						42,846			52,294
Net Earnings (Loss)	$	(228,146	)	$	329,344			(169	%)	$	69,511		$	897,544			(92	%)
Earnings (Loss) Per Share — Basic
Earnings (Loss) per Share — Continuing Operations	$	(1.96	)	$	2.47			(179	%)	$	0.22		$	6.61			(97	%)
Earnings (Loss) per Share — Discontinued Operations		0.06			0.13						0.36			0.41
Earnings (Loss) Per Share — Basic	$	(1.90	)	$	2.60			(173	%)	$	0.58		$	7.02			(92	%)
Earnings (Loss) Per Share — Diluted
Earnings (Loss) per Share — Continuing Operations	$	(1.96	)	$	2.37			(183	%)	$	0.22		$	6.31			(97	%)
Earnings (Loss) per Share — Discontinued Operations		0.06			0.12						0.34			0.39
Earnings (Loss) Per Share — Diluted	$	(1.90	)	$	2.49			(176	%)	$	0.56		$	6.70			(92	%)
Average Shares Outstanding:
Basic		119,935,522			126,572,663			(5	%)		120,507,675			127,933,898			(6	%)
Diluted (C)		119,935,522			132,077,763			(9	%)		124,524,863			133,954,277			(7	%)

(A)	Financial Services excludes the Centex Home Equity operations which were sold in July, 2006 and are reflected in discontinued operations.
(B)	Certain prior year items have been reclassified to conform to current period classifications.
(C)	Because of the net losses for the quarter, no dilutive effects are attributed to outstanding stock options and other equivalents, so both basic and diluted shares and EPS are the same.

Attachment 2

Centex Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Dollars in millions)
(unaudited)

	Centex Corporation and Subsidiaries				Centex Corporation (A)				Financial Services
	December 31,		March 31,		December 31,		March 31,		December 31,		March 31,
	2006		2006		2006		2006		2006		2006
Assets
Cash -
Unrestricted	$	60	$	47	$	51	$	37	$	9	$	10
Restricted		179		135		53		71		126		64
Receivables -
Residential Mortgage Loans Held for Sale		1,989		2,130		—		—		1,989		2,130
Other Receivables		652		704		597		660		55		44
Inventories -
Homebuilding		9,820		8,828		9,820		8,828		—		—
Land Held Under Option Agreements not Owned		375		818		375		818		—		—
Other		12		12		6		6		6		6
Investments		234		310		365		965		—		—
Property and Equipment, net		132		183		114		161		18		22
Goodwill		220		219		211		207		9		12
Deferred Charges and Other Assets		588		469		556		430		32		39
Assets of Discontinued Operations		—		7,510		—		—		—		7,510
	$	14,261	$	21,365	$	12,148	$	12,183	$	2,244	$	9,837
Liabilities and Stockholders’ Equity
Accounts Payable and Accrued Liabilities	$	2,759	$	2,760	$	2,646	$	2,658	$	100	$	93
Debt -
Non-Financial Services		4,309		3,982		4,309		3,982		—		—
Financial Services		1,999		2,077		—		—		1,999		2,077
Liabilities of Discontinued Operations		—		7,002		—		—		—		7,002
Minority Interests		293		532		292		531		1		1
Stockholders’ Equity		4,901		5,012		4,901		5,012		144		664
	$	14,261	$	21,365	$	12,148	$	12,183	$	2,244	$	9,837

(A) 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 present the consolidating information shown above and believe that it is useful to investors because it enables them to compare our homebuilding operations more readily to the businesses of other homebuilding companies that do not have significant financial services operations. We also believe that separate disclosure of the consolidating information is appropriate 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 (A)						Centex Corporation (B)						Financial Services (A)
	For the Nine Months Ended December 31,						For the Nine Months Ended December 31,						For the Nine Months Ended December 31,
	2006			2005			2006			2005			2006			2005
Cash Flows — Operating Activities
Net Earnings	$	70		$	898		$	70		$	898		$	84		$	89
Adjustments -
Depreciation and Amortization		43			49			36			36			7			13
Other Noncash Adjustments		546			(14	)		1,088			(8	)		(31	)		(70	)
Decrease in Loans Held for Sale		141			48			—			—			141			48
(Increase) Decrease in Inventories		(1,456	)		(2,274	)		(1,456	)		(2,275	)		—			1
Other Operating Activities		(66	)		224			16			283			(106	)		6
		(722	)		(1,069	)		(246	)		(1,066	)		95			87
Cash Flows — Investing Activities
Increase in Loans Held for Investment		(292	)		(912	)		—			—			(292	)		(912	)
Other Investing Activities		434			124			(3	)		71			462			(12	)
		142			(788	)		(3	)		71			170			(924	)
Cash Flows — Financing Activities
Increase in Short-Term Debt, net		294			1,782			179			389			115			1,393
Issuance of Long-Term Debt, net		522			114			308			645			214			(531	)
Other Financing Activities		(224	)		(461	)		(224	)		(461	)		(596	)		(25	)
		592			1,435			263			573			(267	)		837
Effect of Exchange Rate on Cash		—			(2	)		—			(2	)		—			—
Net Increase (Decrease) in Cash and Cash Equivalents		12			(424	)		14			(424	)		(2	)		—
Cash and Cash Equivalents at Beginning of Period		48			503			37			490			11			13
Cash and Cash Equivalents at End of Period	$	60		$	79		$	51		$	66		$	9		$	13

(A)

Beginning and ending cash balances include cash from the discontinued operations of Financial Services’ Home Equity operations — approximately $1 million as of March 31, 2006 and 2005 and as of December 31, 2005.

(B)

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 present the consolidating information shown above and believe that it is useful to investors because it enables them to compare our homebuilding operations more readily to the businesses of other homebuilding companies that do not have significant financial services operations. We also believe that separate disclosure of the consolidating information is appropriate 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
(Dollars in thousands, except per unit data)
(unaudited)

	Quarter Ended December 31,										Nine Months Ended December 31,
	2006					2005					2006					2005
HOME BUILDING
Revenues — Housing	$	2,516,089		100.0	%	$	2,956,351		100.0	%	$	7,679,986		100.0	%	$	8,030,378		100.0	%
Cost of Sales — Housing		(2,020,158	)	(80.3	%)		(2,080,742	)	(70.4	%)		(5,854,303	)	(76.2	%)		(5,676,908	)	(70.7	%)
Gross Margin — Housing		495,931		19.7	%		875,609		29.6	%		1,825,683		23.8	%		2,353,470		29.3	%
Revenues — Land Sales & Other		71,162					47,299					215,149					260,858
Cost of Sales — Land Sales & Other		(392,758	)				(45,560	)				(662,605	)				(196,115	)
Gross Margin — Land Sales & Other		(321,596	)				1,739					(447,456	)				64,743
Total Gross Margin		174,335		6.7	%		877,348		29.2	%		1,378,227		17.5	%		2,418,213		29.2	%
Selling, General & Administrative		(420,351	)	(16.2	%)		(421,327	)	(14.0	%)		(1,228,087	)	(15.6	%)		(1,181,024	)	(14.2	%)
Other Income (Expense) (A)		(46,165	)	(1.8	%)		48,902		1.6	%		(36,476	)	(0.5	%)		67,274		0.7	%
Operating Earnings (Loss)	$	(292,181	)	(11.3	%)	$	504,923		16.8	%	$	113,664		1.4	%	$	1,304,463		15.7	%
Units Closed		8,360					9,504					25,203					26,896
Average Unit Sales Price	$	300,968				$	311,064				$	304,725				$	298,571
% Change		(3.2	%)				15.2	%				2.1	%				13.9	%
Operating Earnings (Loss) per Unit	$	(34,950	)			$	53,127				$	4,510				$	48,500
% Change		(165.8	%)				23.1	%				(90.7	%)				32.1	%
Average Neighborhoods		699					635					686					618
% Change		10.1	%				6.2	%				11.0	%				6.4	%

(A) Other Income (Expense) includes earnings (loss) from unconsolidated entities.

LOT POSITION

	As of December 31,
	2006		2005		Change
Lots Owned and Controlled:
Lots Owned		104,186		106,595		(2	%)
Lots Controlled		81,891		187,126		(56	%)
Total		186,077		293,721		(37	%)

Attachment 5

Centex Corporation and Subsidiaries
Supplemental Home Building Data
Housing Activity (Units) by Geographic Area
(Unaudited)

	Closings
	Quarter Ended December 31,							Nine Months Ended December 31,
	2006		2005		Change			2006		2005		Change
Mid-Atlantic		1,604		1,809		(11	%)		4,982		5,103		(2	%)
Southeast		1,265		1,639		(23	%)		4,008		4,725		(15	%)
Midwest		1,261		1,667		(24	%)		4,217		4,994		(16	%)
Southwest		2,558		2,760		(7	%)		7,225		7,366		(2	%)
West Coast		1,672		1,629		3	%		4,771		4,708		1	%
		8,360		9,504		(12	%)		25,203		26,896		(6	%)

	Sales (Orders) Backlog
	As of December 31,
	2006		2005		Change
Mid-Atlantic		2,066		3,367		(39	%)
Southeast		2,561		5,156		(50	%)
Midwest		2,052		3,074		(33	%)
Southwest		3,788		4,683		(19	%)
West Coast		2,934		3,515		(17	%)
		13,401		19,795		(32	%)

	Sales (Orders)
	Quarter Ended December 31,							Nine Months Ended December 31,
	2006		2005		Change			2006		2005		Change
Mid-Atlantic		1,209		1,341		(10	%)		3,975		5,048		(21	%)
Southeast		627		1,350		(54	%)		2,453		4,875		(50	%)
Midwest		909		1,369		(34	%)		3,514		4,756		(26	%)
Southwest		1,971		2,581		(24	%)		6,919		8,361		(17	%)
West Coast		1,423		1,487		(4	%)		4,356		5,062		(14	%)
		6,139		8,128		(24	%)		21,217		28,102		(25	%)

Attachment 6

Centex Corporation and Subsidiaries
Supplemental Home Building Data
Housing Activity (Values) by Geographic Area
(Unaudited)

	Housing Revenues — Closings
	(Dollars in thousands)
	Quarter Ended December 31,							Nine Months Ended December 31,
	2006		2005		Change			2006		2005		Change
Mid-Atlantic	$	516,038	$	634,095		(19	%)	$	1,631,032	$	1,713,464		(5	%)
Southeast		380,257		476,911		(20	%)		1,187,678		1,336,313		(11	%)
Midwest		285,306		377,374		(24	%)		956,833		1,097,740		(13	%)
Southwest		533,416		544,375		(2	%)		1,506,472		1,371,185		10	%
West Coast		801,072		923,596		(13	%)		2,397,971		2,511,676		(5	%)
	$	2,516,089	$	2,956,351		(15	%)	$	7,679,986	$	8,030,378		(4	%)

	Sales (Orders) Backlog Value
	(Dollars in thousands)
	As of December 31,
	2006		2005		Change
Mid-Atlantic	$	665,833	$	1,236,973		(46	%)
Southeast		845,594		1,659,752		(49	%)
Midwest		494,704		711,139		(30	%)
Southwest		837,902		1,146,650		(27	%)
West Coast		1,470,027		1,997,713		(26	%)
	$	4,314,060	$	6,752,227		(36	%)

Attachment 7

Centex Corporation and Subsidiaries
Supplemental Financial Services Data
(Unaudited)

	Quarter Ended December 31,							Nine Months Ended December 31,
	2006		2005		Change			2006		2005		Change
CTX Mortgage Company
Originations
Builder		6,393		6,616		(3	%)		18,887		18,480		2	%
Retail		7,212		9,813		(27	%)		23,868		35,028		(32	%)
Total		13,605		16,429		(17	%)		42,755		53,508		(20	%)
Loan Volume (in billions)	$	3.29	$	3.74		(12	%)	$	10.14	$	11.84		(14	%)
Average Loan Size	$	241,900	$	227,500		6	%	$	237,100	$	221,200		7	%
Operating Profit per Loan	$	1,212	$	1,278		(5	%)	$	1,538	$	1,177		31	%

Attachment 8

Centex Corporation and Subsidiaries
Supplemental Financial Data — Debt-to-Capitalization Ratio
(Dollars in millions)
(Unaudited)

	As of December 31, 2006			As of March 31, 2006			As of December 31, 2005
Consolidated Debt/Capitalization (A)
Debt	$	6,308		$	6,059		$	5,771
Minority Interests		293			532			539
Less Minority Interests on Lot Options (C)		(263	)		(492	)		(497	)
Stockholders’ Equity		4,901			5,012			4,750
Capitalization		11,239			11,111			10,563
Less Unrestricted Cash		(60	)		(47	)		(78	)
Net Capitalization	$	11,179		$	11,064		$	10,485
Consolidated Debt-to-Capitalization Ratio		56.1	%		54.5	%		54.6	%
Consolidated Net Debt-to-Capitalization Ratio (D)		55.9	%		54.3	%		54.3	%
Debt/Capitalization, Excluding Financial Services (B)
Debt	$	4,309		$	3,982		$	4,107
Minority Interests		292			531			537
Less Minority Interests on Lot Options (C)		(263	)		(492	)		(497	)
Stockholders’ Equity		4,901			5,012			4,750
Capitalization		9,239			9,033			8,897
Less Unrestricted Cash		(51	)		(37	)		(66	)
Net Capitalization	$	9,188		$	8,996		$	8,831
Debt-to-Capitalization Ratio		46.6	%		44.1	%		46.2	%
Net Debt-to-Capitalization Ratio (D)		46.3	%		43.9	%		45.8	%

(A)	Consolidated capitalization includes debt, minority interest (excluding lot options), and stockholders’ equity, including Financial Services.
(B)	Capitalization includes debt, minority interest (excluding lot options), and stockholders’ equity. Capitalization presented above reflects Financial Services on an equity basis and does not include debt or minority interests attributable to Financial Services.
(C)	Pursuant to the provisions of Financial Accounting Standards Board (“FASB”) Interpretation No. 46, “Consolidation of Variable Interest Entities,” as revised (“FIN 46”), the Company consolidates certain lot option agreements and records the deposit and remaining purchase price related to these options as land held under option agreements not owned with a corresponding increase in minority interests. These minority interests are excluded from the debt-to-capitalization ratio as the Company is not obligated to purchase the properties and pay these amounts.
(D)	Net debt-to-capitalization ratios are provided reflecting net capitalization, including net debt (debt less unrestricted cash), minority interest (excluding lot options), and stockholders’ equity. We believe this ratio reflects the debt/capitalization structure in a more inclusive manner as unrestricted cash could be applied to reduce debt at quarter end. See Attachment 2 for more information.

Debt-to-capitalization is a common financial ratio used in the homebuilding industry to evaluate debt capacity and leverage.

Attachment 9

Centex Corporation and Subsidiaries
Reconciliation of Housing/Home Building Operating Earnings
(Dollars in thousands)
(unaudited)

	Quarter Ended December 31,										Nine Months Ended December 31,
	2006					2005					2006					2005
HOME BUILDING
Revenues — Housing	$	2,516,089		100.0	%	$	2,956,351		100.0	%	$	7,679,986		100.0	%	$	8,030,378		100.0	%
Cost of Sales — Housing		(2,020,158	)	(80.3	%)		(2,080,742	)	(70.4	%)		(5,854,303	)	(76.2	%)		(5,676,908	)	(70.7	%)
Gross Margin — Housing		495,931		19.7	%		875,609		29.6	%		1,825,683		23.8	%		2,353,470		29.3	%
Selling, General & Administrative		(420,351	)	(16.7	%)		(421,327	)	(14.2	%)		(1,228,087	)	(16.0	%)		(1,181,024	)	(14.7	%)
Housing Operating Earnings (A)		75,580		3.0	%		454,282		15.4	%		597,596		7.8	%		1,172,446		14.6	%
Revenues — Land Sales & Other		71,162					47,299					215,149					260,858
Cost of Sales — Land Sales & Other		(392,758	)				(45,560	)				(662,605	)				(196,115	)
Gross Margin — Land Sales & Other		(321,596	)				1,739					(447,456	)				64,743
Other Income (Expense)		(46,165	)				48,902					(36,476	)				67,274
Operating Earnings (Loss)	$	(292,181	)	(11.3	%)	$	504,923		16.8	%	$	113,664		1.4	%	$	1,304,463		15.7	%

	Fiscal Years Ending March 31,
	2007P					2006					2005
HOME BUILDING
Revenues — Housing	$	10,575,000		100.0	%	$	11,920,634		100.0	%	$	9,007,148		100.0	%
Cost of Sales — Housing		(8,225,000	)	(77.8	%)		(8,458,995	)	(71.0	%)		(6,486,709	)	(72.0	%)
Gross Margin — Housing		2,350,000		22.2	%		3,461,639		29.0	%		2,520,439		28.0	%
Selling, General & Administrative		(1,625,000	)	(15.3	%)		(1,696,456	)	(14.2	%)		(1,301,606	)	(14.5	%)
Housing Operating Earnings (A)		725,000		6.9	%		1,765,183		14.8	%		1,218,833		13.5	%
Revenues — Land Sales & Other		400,000					351,569					352,593
Cost of Sales — Land Sales & Other		(975,000	)				(296,938	)				(261,394	)
Gross Margin — Land Sales & Other		(575,000	)				54,631					91,199
Other Income (Expense)		(25,000	)				85,998					68,786
Operating Earnings	$	125,000		1.1	%	$	1,905,812		15.5	%	$	1,378,818		14.7	%

(A) Housing Operating Earnings is defined as housing revenues less housing cost of sales less selling, general & administrative expenses. Housing Operating Margin is defined as housing operating earnings divided by total housing revenues.