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
Eric Bruner,Director—Public Relations
http://www.centex.com
Matthew G. Moyer, Vice President—Investor Relations
Eric Bruner,Director—Public Relations
http://www.centex.com
CENTEX REPORTS FOURTH QUARTER
AND FISCAL YEAR RESULTS
AND FISCAL YEAR RESULTS
DALLAS— April 30, 2007: Centex Corporation(NYSE: CTX), today reported financial results for its fiscal fourth quarter and fiscal year ended March 31, 2007.
Highlights of the quarter ended March 31, 2007 (compared to last year’s fourth quarter):
• | Total revenues decreased 11% to $3.67 billion | ||
• | Home closings decreased 14% to 10,582 | ||
• | Loss from continuing operations was $0.18 per diluted share | ||
• | Reduced inventory of unsold homes by 23% in the quarter | ||
• | Unit backlog declined 39% on a decrease in sales (orders) of 21% |
Highlights of fiscal year 2007 (compared to fiscal year 2006):
• | Total revenues decreased 7% to $12.0 billion | ||
• | Earnings per diluted share of $2.16 | ||
• | Home closings decreased 9% to 35,785 | ||
• | Generated $1 billion of operating cash flow | ||
• | Successfully sold sub-prime mortgage and commercial contracting businesses |
“In reacting to one of the most difficult markets in 25 years, we accomplished important goals that lay the groundwork for the future,” said Tim Eller, chairman and CEO of Centex Corp. “We reduced costs, continued to align our land position with current demand and generated $1 billion in cash. Additionally, we profitably sold our sub-prime mortgage and commercial contracting businesses. Although we still see uncertainty in many of our markets, we are in position to increase our market share and generate additional cash.”
CORPORATE RESULTS
Net earnings for fiscal 2007 totaled $268 million, or $2.16 per diluted share, down from $1.29 billion, or $9.71 per diluted share, in the prior year. The loss from continuing operations for fiscal 2007 was $12 million, or a loss of $0.09 per diluted share, down from earnings of $1.21 billion, or $9.09 per diluted share in the previous year.
Centex Corporation, Page 2 of 3
Net earnings for the fourth quarter of fiscal 2007 totaled $199 million, or $1.60 per diluted share, down from $392 million, or $3.04 per diluted share, in the prior year’s fourth quarter. The loss from continuing operations for fiscal 2007’s fourth quarter was $22 million, or a loss of $0.18 per diluted share, down from earnings of $369 million, or $2.86 per diluted share in the previous year’s fourth quarter. Included in the fourth quarter of fiscal 2007’s loss from continuing operations is $202 million, or $1.01 per diluted share, of land option write-offs and land valuation adjustments.
HOME BUILDING
Fiscal 2007’s fourth quarter revenues were $3.52 billion, 12% lower than the same quarter last year as a result of a 14% year over year decrease in closings to 10,582 homes. Home building reported an operating loss of $17 million for the quarter, after the write off of $96 million of land option deposits and pre-acquisition costs and $106 million of land valuation adjustments, including $18 million from joint ventures. Housing operating earnings (housing revenues less housing cost of sales and SG&A) were $186 million, down 69%, as a result of higher discounts and sales incentives. The margin from housing operations was 5.6% in this year’s fourth quarter, aided by a 31% decrease in general and administrative expenses. The total home building operating margin for the quarter, including all land related expenses, was a negative 0.5%, due to higher discounts and incentives, the land option write-offs and land valuation adjustments.
For fiscal year 2007, revenues were $11.41 billion, 7% lower than last year. Reported home building operating earnings were $97 million, 95% below last year. For the year, unit closings decreased 9% to 35,785 homes.
FINANCIAL SERVICES
Operating earnings from Financial Services totaled $19 million for the fourth quarter of fiscal 2007, 10% lower than the same quarter a year ago. CTX Mortgage originated loans for 82% of Centex Homes’ buyers during the fourth quarter, up five percentage points versus last year’s fourth quarter. Centex’s Financial Services operations provide Centex home buyers with a streamlined home-closing and settlement process.
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 fourth quarter fiscal year 2007 financial results at 10 a.m. Eastern Time (9 a.m. Central Time) on Tuesday, May 1. 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 3 of 3
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 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 or mortgage loans 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)
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) | |||||||||||||||||||||||
2007 | 2006 (B) | Change | 2007 | 2006 (B) | Change | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Home Building | $ | 3,519,692 | $ | 3,980,967 | (12 | %) | $ | 11,414,827 | $ | 12,272,203 | (7 | %) | ||||||||||||
Financial Services (A) | 117,105 | 118,498 | (1 | %) | 468,001 | 462,223 | 1 | % | ||||||||||||||||
Other | 32,066 | 30,664 | 5 | % | 131,739 | 117,438 | 12 | % | ||||||||||||||||
Total | $ | 3,668,863 | $ | 4,130,129 | (11 | %) | $ | 12,014,567 | $ | 12,851,864 | (7 | %) | ||||||||||||
Operating Earnings | ||||||||||||||||||||||||
Home Building (C) | $ | (16,843 | ) | $ | 601,349 | (103 | %) | $ | 96,821 | $ | 1,905,812 | (95 | %) | |||||||||||
Financial Services (A) | 18,783 | 20,922 | (10 | %) | 84,530 | 84,465 | — | % | ||||||||||||||||
Other | 267 | 1,029 | (74 | %) | (1,525 | ) | (5,779 | ) | 74 | % | ||||||||||||||
Total Operating Earnings | 2,207 | 623,300 | (100 | %) | 179,826 | 1,984,498 | (91 | %) | ||||||||||||||||
Corporate General Expenses (C) | (9,498 | ) | (29,220 | ) | (77,053 | ) | (100,155 | ) | ||||||||||||||||
Interest Expense | — | (3,362 | ) | — | (12,067 | ) | ||||||||||||||||||
Earnings (Loss) from Continuing Operations Before Income Taxes | (7,291 | ) | 590,718 | (101 | %) | 102,773 | 1,872,276 | (95 | %) | |||||||||||||||
Income Taxes | (14,994 | ) | (221,758 | ) | (114,553 | ) | (665,187 | ) | ||||||||||||||||
Earnings (Loss) from Continuing Operations | (22,285 | ) | 368,960 | (106 | %) | (11,780 | ) | 1,207,089 | (101 | %) | ||||||||||||||
Earnings from Discontinued Operations, net (A) | 221,140 | 22,809 | 280,146 | 82,224 | ||||||||||||||||||||
Net Earnings | $ | 198,855 | $ | 391,769 | (49 | %) | $ | 268,366 | $ | 1,289,313 | (79 | %) | ||||||||||||
Earnings Per Share — Basic | ||||||||||||||||||||||||
Earnings (Loss) per Share — Continuing Operations | $ | (0.18 | ) | $ | 2.99 | (106 | %) | $ | (0.10 | ) | $ | 9.51 | (101 | %) | ||||||||||
Earnings per Share — Discontinued Operations | 1.83 | 0.18 | 2.33 | 0.65 | ||||||||||||||||||||
Earnings Per Share — Basic | $ | 1.65 | $ | 3.17 | (48 | %) | $ | 2.23 | $ | 10.16 | (78 | %) | ||||||||||||
Earnings Per Share — Diluted | ||||||||||||||||||||||||
Earnings (Loss) per Share — Continuing Operations | $ | (0.18 | ) | $ | 2.86 | (106 | %) | $ | (0.09 | ) | $ | 9.09 | (101 | %) | ||||||||||
Earnings per Share — Discontinued Operations | 1.78 | 0.18 | 2.25 | 0.62 | ||||||||||||||||||||
Earnings Per Share — Diluted | $ | 1.60 | $ | 3.04 | (47 | %) | $ | 2.16 | $ | 9.71 | (78 | %) | ||||||||||||
Average Shares Outstanding: | ||||||||||||||||||||||||
Basic | 120,627,559 | 123,622,796 | (2 | %) | 120,537,235 | 126,870,887 | (5 | %) | ||||||||||||||||
Diluted | 124,068,032 | 128,732,705 | (4 | %) | 124,410,244 | 132,749,797 | (6 | %) |
(A) | Financial Services excludes the Centex Home Equity operations which were sold in July 2006 and are reflected in discontinued operations. In addition, Construction Services, which was sold in March 2007, is also reflected in discontinued operations. | |
(B) | Certain prior year items have been reclassified to conform to current period classifications. | |
(C) | Centex is reorganizing its reporting segments which will be disclosed in its fiscal 2007 Form 10-K. As part of the reorganization of reporting segments, a portion of its Home Building SG&A costs will be reported as Corporate General Expenses, which will more appropriately reflect the alignment of its operations. |
Attachment 2
Centex Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Dollars in millions)
(unaudited)
Condensed Consolidated Balance Sheets
(Dollars in millions)
(unaudited)
Centex Corporation and Subsidiaries | Centex Corporation (A) | Financial Services | ||||||||||||||||||||||
March 31, | March 31, | March 31, | March 31, | March 31, | March 31, | |||||||||||||||||||
2007 | 2006 | 2007 | 2006 | 2007 | 2006 | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash - | ||||||||||||||||||||||||
Unrestricted | $ | 883 | $ | 43 | $ | 871 | $ | 33 | $ | 12 | $ | 10 | ||||||||||||
Restricted | 146 | 133 | 57 | 69 | 89 | 64 | ||||||||||||||||||
Receivables - | ||||||||||||||||||||||||
Mortgage Loans Receivable | 1,694 | 2,130 | — | — | 1,694 | 2,130 | ||||||||||||||||||
Other Receivables | 228 | 326 | 176 | 283 | 52 | 43 | ||||||||||||||||||
Inventories - | ||||||||||||||||||||||||
Homebuilding | 8,654 | 8,832 | 8,654 | 8,832 | — | — | ||||||||||||||||||
Land Held Under Option Agreements not Owned | 282 | 818 | 282 | 818 | — | — | ||||||||||||||||||
Other | 15 | 12 | 6 | 5 | 9 | 7 | ||||||||||||||||||
Investments | 282 | 308 | 419 | 963 | — | — | ||||||||||||||||||
Property and Equipment, net | 136 | 178 | 119 | 156 | 17 | 22 | ||||||||||||||||||
Goodwill | 219 | 218 | 210 | 206 | 9 | 12 | ||||||||||||||||||
Deferred Charges and Other Assets | 667 | 468 | 629 | 429 | 38 | 39 | ||||||||||||||||||
Assets of Discontinued Operations (B) | — | 7,899 | — | 389 | — | 7,510 | ||||||||||||||||||
$ | 13,206 | $ | 21,365 | $ | 11,423 | $ | 12,183 | $ | 1,920 | $ | 9,837 | |||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||
Accounts Payable and Accrued Liabilities | $ | 2,350 | $ | 2,182 | $ | 2,231 | $ | 2,080 | $ | 95 | $ | 93 | ||||||||||||
Debt - | ||||||||||||||||||||||||
Non-Financial Services | 3,904 | 3,982 | 3,904 | 3,982 | — | — | ||||||||||||||||||
Financial Services | 1,663 | 2,077 | — | — | 1,663 | 2,077 | ||||||||||||||||||
Liabilities of Discontinued Operations (B) | — | 7,581 | — | 579 | — | 7,002 | ||||||||||||||||||
Minority Interests | 177 | 531 | 176 | 530 | 1 | 1 | ||||||||||||||||||
Stockholders’ Equity | 5,112 | 5,012 | 5,112 | 5,012 | 161 | 664 | ||||||||||||||||||
$ | 13,206 | $ | 21,365 | $ | 11,423 | $ | 12,183 | $ | 1,920 | $ | 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. | |
(B) | The assets and liabilities of discontinued operations at March 31, 2006 include the Centex Home Equity operations, sold in July 2006 and the Construction Services operations, sold in March 2007. |
Attachment 3
Centex Corporation and Subsidiaries
Condensed Consolidated Cash Flows
(Dollars in millions)
(unaudited)
Condensed Consolidated Cash Flows
(Dollars in millions)
(unaudited)
Centex Corporation and Subsidiaries (A) | Centex Corporation (A)(B) | Financial Services (A) | ||||||||||||||||||||||
For the Fiscal Year Ended March 31, | For the Fiscal Year Ended March 31, | For the Fiscal Year Ended March 31, | ||||||||||||||||||||||
2007 | 2006 | 2007 | 2006 | 2007 | 2006 | |||||||||||||||||||
Cash Flows — Operating Activities | ||||||||||||||||||||||||
Net Earnings | $ | 268 | $ | 1,289 | $ | 268 | $ | 1,289 | $ | 102 | $ | 119 | ||||||||||||
Adjustments - | ||||||||||||||||||||||||
Depreciation and Amortization | 60 | 63 | 52 | 48 | 8 | 15 | ||||||||||||||||||
Other Noncash Adjustments | 285 | 82 | 812 | 14 | (32 | ) | 22 | |||||||||||||||||
Decrease (Increase) in Loans Held for Sale | 519 | (200 | ) | — | — | 519 | (200 | ) | ||||||||||||||||
Increase in Inventories | (481 | ) | (2,484 | ) | (479 | ) | (2,484 | ) | (2 | ) | — | |||||||||||||
Other Operating Activities | 298 | 487 | 277 | 466 | (16 | ) | 57 | |||||||||||||||||
949 | (763 | ) | 930 | (667 | ) | 579 | 13 | |||||||||||||||||
Cash Flows — Investing Activities | ||||||||||||||||||||||||
(Increase) Decrease in Loans Held for Investment | (292 | ) | 952 | — | — | (292 | ) | 952 | ||||||||||||||||
Other Investing Activities | 381 | (52 | ) | 46 | 77 | 370 | (165 | ) | ||||||||||||||||
89 | 900 | 46 | 77 | 78 | 787 | |||||||||||||||||||
Cash Flows — Financing Activities | ||||||||||||||||||||||||
(Decrease) Increase in Short-Term Debt, net | (347 | ) | 765 | (125 | ) | 119 | (222 | ) | 646 | |||||||||||||||
Issuance of Long-Term Debt, net | 422 | (729 | ) | 207 | 629 | 215 | (1,358 | ) | ||||||||||||||||
Other Financing Activities | (278 | ) | (626 | ) | (224 | ) | (610 | ) | (649 | ) | (89 | ) | ||||||||||||
(203 | ) | (590 | ) | (142 | ) | 138 | (656 | ) | (801 | ) | ||||||||||||||
Effect of Exchange Rate on Cash | — | (1 | ) | — | (1 | ) | — | — | ||||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 835 | (454 | ) | 834 | (453 | ) | 1 | (1 | ) | |||||||||||||||
Cash and Cash Equivalents at Beginning of Period | 48 | 502 | 37 | 490 | 11 | 12 | ||||||||||||||||||
Cash and Cash Equivalents at End of Period | $ | 883 | $ | 48 | $ | 871 | $ | 37 | $ | 12 | $ | 11 | ||||||||||||
(A) | Beginning cash balances include cash from the discontinued operations of Centex Construction and Financial Services’ Home Equity operations — approximately $5 million as of March 31, 2006 and $6 million at March 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)
Supplemental Home Building Data
(Dollars in thousands, except per unit data)
(unaudited)
Quarter Ended March 31, | Fiscal Year Ended March 31, | |||||||||||||||||||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||||||||||||||||||
HOME BUILDING | ||||||||||||||||||||||||||||||||
Revenues — Housing | $ | 3,334,989 | 100.0 | % | $ | 3,890,256 | 100.0 | % | $ | 11,014,975 | 100.0 | % | $ | 11,920,634 | 100.0 | % | ||||||||||||||||
Cost of Sales — Housing | (2,745,162 | ) | (82.3 | %) | (2,782,087 | ) | (71.5 | %) | (8,599,465 | ) | (78.1 | %) | (8,458,995 | ) | (71.0 | %) | ||||||||||||||||
Gross Margin — Housing | 589,827 | 17.7 | % | 1,108,169 | 28.5 | % | 2,415,510 | 21.9 | % | 3,461,639 | 29.0 | % | ||||||||||||||||||||
Revenues — Land Sales & Other | 184,703 | 90,711 | 399,852 | 351,569 | ||||||||||||||||||||||||||||
Cost of Sales — Land Sales & Other | (381,850 | ) | (100,823 | ) | (1,044,455 | ) | (296,938 | ) | ||||||||||||||||||||||||
Gross Margin — Land Sales & Other | (197,147 | ) | (10,112 | ) | (644,603 | ) | 54,631 | |||||||||||||||||||||||||
Total Gross Margin | 392,680 | 11.2 | % | 1,098,057 | 27.6 | % | 1,770,907 | 15.5 | % | 3,516,270 | 28.7 | % | ||||||||||||||||||||
Selling, General & Administrative | (403,446 | ) | (11.5 | %) | (515,432 | ) | (12.9 | %) | (1,631,533 | ) | (14.3 | %) | (1,696,456 | ) | (13.8 | %) | ||||||||||||||||
Other Income (Expense) (A) | (6,077 | ) | (0.2 | %) | 18,724 | 0.4 | % | (42,553 | ) | (0.4 | %) | 85,998 | 0.6 | % | ||||||||||||||||||
Operating Earnings (Loss) | $ | (16,843 | ) | (0.5 | %) | $ | 601,349 | 15.1 | % | $ | 96,821 | 0.8 | % | $ | 1,905,812 | 15.5 | % | |||||||||||||||
Units Closed | 10,582 | 12,336 | 35,785 | 39,232 | ||||||||||||||||||||||||||||
Average Unit Sales Price | $ | 315,157 | $ | 315,358 | $ | 307,810 | $ | 303,850 | ||||||||||||||||||||||||
% Change | (0.1 | %) | 9.8 | % | 1.3 | % | 12.6 | % | ||||||||||||||||||||||||
Average Neighborhoods | 694 | 646 | 687 | 626 | ||||||||||||||||||||||||||||
% Change | 7.4 | % | 5.4 | % | 9.7 | % | 6.3 | % |
(A) | Other Income (Expense) includes earnings (loss) from unconsolidated entities. |
LOT POSITION
As of March 31, | ||||||||||||
2007 | 2006 | Change | ||||||||||
Lots Owned and Controlled: | ||||||||||||
Lots Owned | 98,311 | 108,828 | (10 | %) | ||||||||
Lots Controlled | 61,709 | 186,893 | (67 | %) | ||||||||
Total | 160,020 | 295,721 | (46 | %) | ||||||||
Attachment 5
Centex Corporation and Subsidiaries
Supplemental Home Building Data
Housing Activity (Units) by Geographic Area
(Unaudited)
Supplemental Home Building Data
Housing Activity (Units) by Geographic Area
(Unaudited)
Closings | ||||||||||||||||||||||||
Quarter Ended March 31, | Fiscal Year Ended March 31, | |||||||||||||||||||||||
2007 | 2006 | Change | 2007 | 2006 | Change | |||||||||||||||||||
Mid-Atlantic | 1,738 | 2,079 | (16 | %) | 6,720 | 7,182 | (6 | %) | ||||||||||||||||
Southeast | 1,875 | 2,510 | (25 | %) | 5,883 | 7,235 | (19 | %) | ||||||||||||||||
Midwest | 1,370 | 2,159 | (37 | %) | 5,587 | 7,153 | (22 | %) | ||||||||||||||||
Southwest | 3,176 | 3,354 | (5 | %) | 10,401 | 10,720 | (3 | %) | ||||||||||||||||
West Coast | 2,423 | 2,234 | 8 | % | 7,194 | 6,942 | 4 | % | ||||||||||||||||
10,582 | 12,336 | (14 | %) | 35,785 | 39,232 | (9 | %) | |||||||||||||||||
Sales (Orders) Backlog | ||||||||||||
As of March 31, | ||||||||||||
2007 | 2006 | Change | ||||||||||
Mid-Atlantic | 1,848 | 3,073 | (40 | %) | ||||||||
Southeast | 1,672 | 4,116 | (59 | %) | ||||||||
Midwest | 1,938 | 2,755 | (30 | %) | ||||||||
Southwest | 3,125 | 4,094 | (24 | %) | ||||||||
West Coast | 2,068 | 3,349 | (38 | %) | ||||||||
10,651 | 17,387 | (39 | %) | |||||||||
Sales (Orders) | ||||||||||||||||||||||||
Quarter Ended March 31, | Fiscal Year Ended March 31, | |||||||||||||||||||||||
2007 | 2006 | Change | 2007 | 2006 | Change | |||||||||||||||||||
Mid-Atlantic | 1,520 | 1,785 | (15 | %) | 5,495 | 6,833 | (20 | %) | ||||||||||||||||
Southeast | 986 | 1,470 | (33 | %) | 3,439 | 6,345 | (46 | %) | ||||||||||||||||
Midwest | 1,256 | 1,840 | (32 | %) | 4,770 | 6,596 | (28 | %) | ||||||||||||||||
Southwest | 2,513 | 2,765 | (9 | %) | 9,432 | 11,126 | (15 | %) | ||||||||||||||||
West Coast | 1,557 | 2,068 | (25 | %) | 5,913 | 7,130 | (17 | %) | ||||||||||||||||
7,832 | 9,928 | (21 | %) | 29,049 | 38,030 | (24 | %) | |||||||||||||||||
Attachment 6
Centex Corporation and Subsidiaries
Supplemental Home Building Data
Housing Activity (Values) by Geographic Area
(Unaudited)
Supplemental Home Building Data
Housing Activity (Values) by Geographic Area
(Unaudited)
Housing Revenues - Closings | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Quarter Ended March 31, | Fiscal Year Ended March 31, | |||||||||||||||||||||||
2007 | 2006 | Change | 2007 | 2006 | Change | |||||||||||||||||||
Mid-Atlantic | $ | 548,167 | $ | 708,838 | (23 | %) | $ | 2,179,199 | $ | 2,422,302 | (10 | %) | ||||||||||||
Southeast | 594,771 | 752,802 | (21 | %) | 1,782,449 | 2,089,115 | (15 | %) | ||||||||||||||||
Midwest | 347,750 | 485,262 | (28 | %) | 1,304,583 | 1,583,002 | (18 | %) | ||||||||||||||||
Southwest | 652,193 | 748,355 | (13 | %) | 2,158,665 | 2,119,540 | 2 | % | ||||||||||||||||
West Coast | 1,192,108 | 1,194,999 | — | % | 3,590,079 | 3,706,675 | (3 | %) | ||||||||||||||||
$ | 3,334,989 | $ | 3,890,256 | (14 | %) | $ | 11,014,975 | $ | 11,920,634 | (8 | %) | |||||||||||||
Sales (Orders) Backlog Value | ||||||||||||
(Dollars in thousands) | ||||||||||||
As of March 31, | ||||||||||||
2007 | 2006 | Change | ||||||||||
Mid-Atlantic | $ | 611,057 | $ | 1,044,086 | (41 | %) | ||||||
Southeast | 517,343 | 1,350,484 | (62 | %) | ||||||||
Midwest | 422,313 | 644,140 | (34 | %) | ||||||||
Southwest | 661,405 | 968,250 | (32 | %) | ||||||||
West Coast | 963,841 | 1,766,748 | (45 | %) | ||||||||
$ | 3,175,959 | $ | 5,773,708 | (45 | %) | |||||||
Attachment 7
Centex Corporation and Subsidiaries
Supplemental Financial Services Data
(Unaudited)
Supplemental Financial Services Data
(Unaudited)
CTX Mortgage Company
Quarter Ended March 31, | Fiscal Year Ended March 31, | |||||||||||||||||||||||
2007 | 2006 | Change | 2007 | 2006 | Change | |||||||||||||||||||
Originations | ||||||||||||||||||||||||
Builder | 8,254 | 8,884 | (7 | %) | 27,141 | 27,364 | (1 | %) | ||||||||||||||||
Retail | 6,770 | 8,291 | (18 | %) | 30,638 | 43,319 | (29 | %) | ||||||||||||||||
Total | 15,024 | 17,175 | (13 | %) | 57,779 | 70,683 | (18 | %) | ||||||||||||||||
Loan Volume (in billions) | $ | 3.69 | $ | 3.99 | (8 | %) | $ | 13.83 | $ | 15.83 | (13 | %) | ||||||||||||
Average Loan Size | $ | 245,500 | $ | 232,300 | 6 | % | $ | 239,300 | $ | 223,900 | 7 | % | ||||||||||||
Operating Profit per Loan | $ | 1,250 | $ | 1,218 | 3 | % | $ | 1,463 | 1,195 | 22 | % | |||||||||||||
Attachment 8
Centex Corporation and Subsidiaries
Supplemental Financial Data — Debt-to-Capitalization Ratio
(Dollars in millions)
(Unaudited)
Supplemental Financial Data — Debt-to-Capitalization Ratio
(Dollars in millions)
(Unaudited)
As of March 31, 2007 | As of March 31, 2006 | As of March 31, 2005 | ||||||||||
Consolidated Debt/Capitalization (A) | ||||||||||||
Debt | $ | 5,567 | $ | 6,059 | $ | 4,804 | ||||||
Minority Interests | 177 | 531 | 457 | |||||||||
Less Minority Interests on Lot Options (C) | (153 | ) | (492 | ) | (416 | ) | ||||||
Stockholders’ Equity | 5,112 | 5,012 | 4,281 | |||||||||
Capitalization | 10,703 | 11,110 | 9,126 | |||||||||
Less Unrestricted Cash | (883 | ) | (43 | ) | (496 | ) | ||||||
Net Capitalization | $ | 9,820 | $ | 11,067 | $ | 8,630 | ||||||
Consolidated Debt-to-Capitalization Ratio | 52.0 | % | 54.5 | % | 52.6 | % | ||||||
Consolidated Net Debt-to-Capitalization Ratio (D) | 47.7 | % | 54.4 | % | 49.9 | % | ||||||
Debt/Capitalization, Excluding Financial Services (B) | ||||||||||||
Debt | $ | 3,904 | $ | 3,982 | $ | 3,108 | ||||||
Minority Interests | 176 | 530 | 456 | |||||||||
Less Minority Interests on Lot Options (C) | (153 | ) | (492 | ) | (416 | ) | ||||||
Stockholders’ Equity | 5,112 | 5,012 | 4,281 | |||||||||
Capitalization | 9,039 | 9,032 | 7,429 | |||||||||
Less Unrestricted Cash | (871 | ) | (33 | ) | (485 | ) | ||||||
Net Capitalization | $ | 8,168 | $ | 8,999 | $ | 6,944 | ||||||
Debt-to-Capitalization Ratio | 43.2 | % | 44.1 | % | 41.8 | % | ||||||
Net Debt-to-Capitalization Ratio (D) | 37.1 | % | 43.9 | % | 37.8 | % | ||||||
(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 includ 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)
Reconciliation of Housing/Home Building Operating Earnings
(Dollars in thousands)
(unaudited)
Quarter Ended March 31, | Fiscal Year Ended March 31, | |||||||||||||||||||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||||||||||||||||||
HOME BUILDING | ||||||||||||||||||||||||||||||||
Revenues — Housing | $ | 3,334,989 | 100.0 | % | $ | 3,890,256 | 100.0 | % | $ | 11,014,975 | 100.0 | % | $ | 11,920,634 | 100.0 | % | ||||||||||||||||
Cost of Sales — Housing | (2,745,162 | ) | (82.3 | %) | (2,782,087 | ) | (71.5 | %) | (8,599,465 | ) | (78.1 | %) | (8,458,995 | ) | (71.0 | %) | ||||||||||||||||
Gross Margin — Housing | 589,827 | 17.7 | % | 1,108,169 | 28.5 | % | 2,415,510 | 21.9 | % | 3,461,639 | 29.0 | % | ||||||||||||||||||||
Selling, General & Administrative | (403,446 | ) | (12.1 | %) | (515,432 | ) | (13.3 | %) | (1,631,533 | ) | (14.8 | %) | (1,696,456 | ) | (14.2 | %) | ||||||||||||||||
Housing Operating Earnings (A) | 186,381 | 5.6 | % | 592,737 | 15.2 | % | 783,977 | 7.1 | % | 1,765,183 | 14.8 | % | ||||||||||||||||||||
Revenues — Land Sales & Other | 184,703 | 90,711 | 399,852 | 351,569 | ||||||||||||||||||||||||||||
Cost of Sales — Land Sales & Other | (381,850 | ) | (100,823 | ) | (1,044,455 | ) | (296,938 | ) | ||||||||||||||||||||||||
Gross Margin — Land Sales & Other | (197,147 | ) | (10,112 | ) | (644,603 | ) | 54,631 | |||||||||||||||||||||||||
Other Income (Expense) | (6,077 | ) | 18,724 | (42,553 | ) | 85,998 | ||||||||||||||||||||||||||
Operating Earnings (Loss) | $ | (16,843 | ) | (0.5 | %) | $ | 601,349 | 15.1 | % | $ | 96,821 | 0.8 | % | $ | 1,905,812 | 15.5 | % | |||||||||||||||
(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. |