EXHIBIT 99.1
[CENTEX LETTERHEAD]
NEWSRELEASE
- --------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE
CENTEX CORPORATION REPORTS RECORD SECOND QUARTER RESULTS
NET EARNINGS IMPROVE 24%; HOME SALES RISE 38%
(DALLAS, TX October 22, 2002): Centex Corporation (NYSE: CTX) today
reported record financial results for the quarter and the six-month period ended
September 30, 2002 - the second quarter and first six months of fiscal 2003.
Net earnings for Centex's second quarter this year were $115,609,000, a
24% increase over $93,389,000 for the same quarter a year ago. Diluted earnings
per share for the current quarter were $1.83, 22% higher than $1.50 per diluted
share for the same quarter in fiscal 2002. Current quarter revenues of
$2,083,769,000 were 11% above $1,883,633,000 for the same quarter last year.
CENTEX'S SENIOR MANAGEMENT WILL CONDUCT A CONFERENCE CALL TO DISCUSS
THE SECOND QUARTER FINANCIAL RESULTS AND OTHER MATTERS, INCLUDING MANAGEMENT'S
VIEWS ON THE REMAINDER OF THE FISCAL YEAR, AT 11 A.M. EDT (10 A.M. CDT ) TODAY.
THE CONFERENCE CALL WILL BE WEBCAST SIMULTANEOUSLY ON THE CENTEX WEB SITE,
http://www.centex.com. REPLAYS OF THE CALL WILL BE AVAILABLE ON THAT SITE UNTIL
MIDNIGHT CST ON TUESDAY, NOVEMBER 19, 2002.
Centex's net earnings for the first six months of fiscal 2003 were
$203,364,000, a 21% gain over $168,605,000 for the same period in the prior
fiscal year. Diluted earnings per share of $3.21 for this year's six-month
period were 18% higher than $2.72 per diluted share for the same period a year
ago. Revenues for the first six months of fiscal 2003 totaled $3,927,624,000, 9%
higher than $3,592,778,000 for the same period in fiscal 2002.
Net earnings for both the quarter and the six months improved by a
slightly higher percentage than diluted earnings per share due to a higher
number of average shares outstanding in the fiscal 2003 periods.
Through its subsidiaries, Dallas-based Centex ranks among the nation's
largest home builders, non-bank-affiliated retail mortgage originators and
commercial contractors. The Company also has operations in investment real
estate and owns 65.2% of Centex Construction Products, Inc., a publicly held
construction products company.
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CENTEX REPORTS RECORD SECOND QUARTER, SIX MONTH RESULTS, PAGE 2 OF 8
HOME BUILDING
Centex Homes' operating earnings for the second quarter this year were
$137.0 million, 11% higher than $123.0 million for the same quarter a year ago.
Centex Homes' operating margin was 10.7% for this year's quarter versus 10.5%
for the second quarter last year due to continued improved operating
efficiencies. Revenues from Centex Homes were $1.28 billion for the quarter this
year, a 9% gain over revenues of $1.17 billion for the same quarter a year ago.
<Table>
<Caption>
CENTEX HOMES Quarter Ended Sept. 30,
------------------------------------------------------------
2002 2001 Change
----------------- ----------------- ----------------
Closings 5,788 5,418 7%
Sales (Orders) 7,257 5,244 38%
Backlog 12,619 9,978 26%
Unit Sales Price $ 218,167 $ 214,004 1.9%
Operating Earnings/Unit $ 23,678 $ 22,698 4.3%
Operating Margin 10.7% 10.5%
</Table>
Operating earnings from Centex Homes were $245.7 million for the
six-month period this year, 11% higher than $221.1 million for the year-ago
period. For the current six months, revenues from Centex Homes were $2.39
billion, 8% higher than revenues of $2.21 billion for the same period in fiscal
2002.
<Table>
<Caption>
CENTEX HOMES Six Months Ended Sept. 30,
------------------------------------------------------------
2002 2001 Change
----------------- ----------------- ----------------
Closings 10,783 10,268 5%
Sales (Orders) 14,028 10,902 29%
Backlog 12,619 9,978 26%
Unit Sales Price $ 216,156 $ 212,469 1.7%
Operating Earnings/Unit $ 22,783 $ 21,533 5.8%
Operating Margin 10.3% 10.0%
</Table>
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CENTEX REPORTS RECORD SECOND QUARTER, SIX MONTH RESULTS, PAGE 3 OF 8
FINANCIAL SERVICES
Operating earnings from Financial Services for the second quarter this
year were $36.6 million, 25% higher than $29.3 million for the same quarter in
fiscal 2002. Second quarter revenues from Financial Services were $204.8 million
this year, 23% higher than $166.0 million for the same quarter a year ago.
Financial Services operating earnings for the six-month period this
year were $60.9 million, 12% above earnings of $54.4 million for the year-ago
period. For the current six months, Financial Services revenues were $385.4
million, 17% above last year's revenues for the same period.
CTX MORTGAGE COMPANY
Operating earnings from CTX Mortgage Company (CTX) and related
companies totaled $25.2 million for the quarter this year compared to $23.9
million for the second quarter last year. Refinancings accounted for 42% of
total originations for the quarter this year compared to 28% for the second
quarter a year ago. CTX Mortgage's "capture" rate of Centex Homes' non-cash
buyers improved to 73% for the second quarter this year versus 71% for the same
quarter in fiscal 2002.
CTX MORTGAGE COMPANY
<Table>
<Caption>
Quarter Ended Sept. 30,
--------------------------------------------
2002 2001 Change
----------- ----------- -------------
Originations
Builder 3,959 3,633 9%
Retail 16,076 14,974 7%
----------- -----------
Total 20,035 18,607 8%
=========== ===========
Applications
Builder 4,853 4,057 20%
Retail 19,097 15,148 26%
----------- -----------
Total 23,950 19,205 25%
=========== ===========
Loan Volume (in billions) $ 3.34 $ 2.86 17%
=========== ===========
Average Loan Size $ 166,800 $ 153,900 8%
=========== ===========
Profit per Loan $ 1,258 $ 1,284 (2%)
=========== ===========
</Table>
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CENTEX REPORTS RECORD SECOND QUARTER, SIX MONTH RESULTS, PAGE 4 OF 8
Operating earnings from CTX and related companies were $40.1 million
for the six-month period this year compared to earnings of $49.2 million for the
same period a year ago.
CTX MORTGAGE COMPANY
<Table>
<Caption>
Six Months Ended Sept. 30,
--------------------------------------------
2002 2001 Change
----------- ----------- -------------
Originations
Builder 7,337 6,815 8%
Retail 28,482 33,084 (14%)
----------- -----------
Total 35,819 39,899 (10%)
=========== ===========
Applications
Builder 9,376 8,557 10%
Retail 30,493 32,664 (7%)
----------- -----------
Total 39,869 41,221 (3%)
=========== ===========
Loan Volume (in billions) $ 5.82 $ 6.08 (4%)
=========== ===========
Average Loan Size $ 162,600 $ 152,300 7%
=========== ===========
Profit per Loan $ 1,119 $ 1,233 (9%)
=========== ===========
</Table>
CENTEX HOME EQUITY COMPANY
Centex Home Equity Company (CHEC) reported operating earnings of $11.7
million for the second quarter this year, 98% higher than earnings of $5.9
million for the same quarter in fiscal 2002.
<Table>
<Caption>
CENTEX HOME EQUITY Quarter Ended Sept. 30,
--------------------------------------------
2002 2001 Change
----------- ----------- -------------
Originations 7,373 7,257 2%
=========== ===========
Applications 57,737 41,294 40%
=========== ===========
Loan Volume (in billions) $ 0.60 $ 0.55 8%
=========== ===========
Average Loan Size $ 81,500 $ 76,400 7%
=========== ===========
</Table>
For the six-month period this year, CHEC reported operating earnings of
$22.4 million, 254% higher than $6.3 million for the same period in the prior
year.
The portion of CHEC's loan servicing portfolio on which it earns an
interest margin under the "Portfolio Accounting Method" has reached $3.88
billion and continues to grow.
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CENTEX REPORTS RECORD SECOND QUARTER, SIX MONTH RESULTS, PAGE 5 OF 8
<Table>
<Caption>
CENTEX HOME EQUITY Six Months Ended Sept. 30,
--------------------------------------------
2002 2001 Change
----------- ----------- -------------
Originations 13,732 14,065 (2%)
=========== ===========
Applications 107,781 82,368 31%
=========== ===========
Loan Volume (in billions) $ 1.10 $ 1.06 4%
=========== ===========
Average Loan Size $ 80,000 $ 75,200 6%
=========== ===========
Servicing Portfolio as of Sept. 30:
Number of Loans 67,400 56,660 19%
=========== ===========
Total portfolio (in billions) including $3.88 in 2002 and
$2.60 in 2001 of "Portfolio Accounting Method" Loans $ 4.79 $ 3.88 24%
=========== ===========
</Table>
CONSTRUCTION PRODUCTS
Operating earnings for Centex Construction Products, Inc. (CXP), before
minority interest, were $26.7 million for the quarter this year, 19% higher than
$22.5 million for the same quarter last year. CXP's revenues were $136.0 million
for this year's quarter, 5% higher than $129.5 million in fiscal 2002.
CXP's operating earnings for the six months this year were $54.5
million, 54% higher than $35.5 million for the same period last year. Revenues
from CXP were $264.8 million for the six-month period this year, 7% higher than
$247.0 million for the same period a year ago.
CONSTRUCTION SERVICES
Operating earnings from Construction Services were $9.2 million for the
second quarter this year, 26% higher than $7.3 million for the same quarter in
fiscal 2002. Revenues for this year's quarter were $391.7 million, 16% higher
than $336.8 million last year. The operating margin was 2.35% this year versus
2.17% for last year's second quarter. Construction Services received $157
million of new contracts for the quarter this year, 59% less than $387 million
in the year-ago quarter.
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CENTEX REPORTS RECORD SECOND QUARTER, SIX MONTH RESULTS, PAGE 6 OF 8
For the six-month period this year, Construction Services reported
operating earnings of $17.3 million, 17% higher than $14.8 million for the same
period in fiscal 2002. Revenues from this segment were $752.5 million for the
period this year, 16% higher than $650.4 million for the same period a year ago.
The backlog of uncompleted construction contracts at September 30, 2002
was $1.86 billion, 14% less than the contract backlog reported at September 30,
2001.
INVESTMENT REAL ESTATE
For the quarter ended September 30, 2002, Centex's Investment Real
Estate operations, which include all investment property transactions and the
results from the U.K. operations, had operating earnings of $5.9 million, 63%
less than $16.1 million for the same quarter last year. For the six month-period
this year, Investment Real Estate reported operating earnings of $9.3 million,
70% less than $31.4 million for the same period a year ago. Current year results
from Investment Real Estate were affected primarily by significantly fewer land
sales this year.
London, England-based Fairclough Homes, Centex's U.K.-based home
building operation that is owned by Centex Development Company, L. P., closed
383 homes during the second quarter of fiscal 2003 versus 315 units for the same
quarter last year. Fairclough reported operating earnings of $4.2 million this
year, 30% higher than operating earnings of $3.2 million for the same quarter a
year ago. For the six-month period this year, Fairclough had operating earnings
of $3.8 million, 32% less than $5.6 million for the same period a year ago.
OTHER
Centex's Manufactured Homes operation reported operating earnings of
$758,000 for the second quarter of fiscal 2003 versus $65,000 for the same
quarter last year. Manufactured Homes revenues were $36.1 million for this
year's second quarter, 15% higher than $31.5 million a year ago. Manufactured
Homes sold 1,019 units for the current quarter versus 1,025 units for the same
quarter a year ago. The manufactured housing industry continues to be impacted
by industry-wide excess capacity and a decline in available financing.
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CENTEX REPORTS RECORD SECOND QUARTER, SIX MONTH RESULTS, PAGE 7 OF 8
For the six-month period this year, Manufactured Homes reported
operating earnings of $931,000 versus an operating loss of $1.5 million for the
same period a year ago. Revenues from Manufactured Homes were $69.0 million for
the six-month period this year, 17% higher than $59.0 million for the same
period in fiscal 2002. Manufactured Homes sold 2,004 units during the six-month
period this year versus 1,899 units for the year-ago period.
Home Services reported an operating loss of $1.0 million for the second
quarter this year versus operating earnings of $2.6 million for the same quarter
in fiscal 2002. Revenues were $26.3 million for this year's second quarter
versus $25.9 million for the same quarter last year.
For the six-month period this year, Home Services had an operating loss
of $2.6 million compared to operating earnings of $4.5 million for the same
period a year ago. Revenues from Home Services were $55.5 million for the
current six months compared to revenues of $50.6 million for the same period
last year.
OTHER DEVELOPMENTS
During the second quarter, Centex announced that the Company would
begin expensing the cost of future stock option grants starting with fiscal year
2004, which begins April 1, 2003. If Centex were to continue to award option
grants at levels consistent with prior years, the impact for fiscal 2004 would
reduce projected diluted earnings per share by approximately 2% under current
accounting policies.
Also during the quarter, Centex Homes announced that it intends to
acquire substantially all of the St. Louis and Indianapolis home building
operations of The Jones Company, headquartered in St. Louis. The acquisition, to
be completed in January 2003, is expected to add approximately 800 units
annually to Centex Homes' closings.
Centex also announced that its Dallas-based commercial construction
subsidiary, part of the minority-enhanced joint venture of Dallas Fort Worth
Integrated Partners (DFWIA), has been named the prime contractor for the Dallas
Fort Worth International Airport, effective November 1, 2002. The airport
project, with a value that could approach $1.5 billion over the next four years,
is expected to involve the construction of a new $800 million terminal, new
parking garages and security modifications, as well as environmental
improvements.
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CENTEX REPORTS RECORD SECOND QUARTER, SIX MONTH RESULTS, PAGE 8 OF 8
In addition, during the second quarter Centex HomeTeam Services sold
substantially all of its chemical lawn care operation. Centex is exiting the
lawn care business because it believed that the strategic advantage the Company
possesses in providing pest management systems to the new home market could not
be duplicated in the lawn care business.
OUTLOOK
Centex noted the significant improvement in its home sales throughout
the quarter and said that its home closings, margins and earnings should
continue increasing during the balance of fiscal 2003 to record levels.
Financial Services, Construction Services and Construction Products should
report better results than last year, and Centex expects fiscal 2003 to be its
seventh consecutive fiscal year of record earnings.
# # #
FORWARD-LOOKING STATEMENTS. THE "OUTLOOK" SECTION OF 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 THE COMPANY
IS DISCUSSING ITS BELIEFS, ESTIMATES OR EXPECTATIONS. THESE STATEMENTS ARE NOT
GUARANTEES OF FUTURE PERFORMANCE AND INVOLVE A NUMBER OF RISKS AND
UNCERTAINTIES. ACTUAL RESULTS AND OUTCOMES MAY DIFFER MATERIALLY FROM WHAT IS
EXPRESSED OR FORECAST IN SUCH FORWARD-LOOKING STATEMENTS. THE PRINCIPAL RISKS
AND UNCERTAINTIES THAT MAY AFFECT THE COMPANY'S ACTUAL PERFORMANCE AND RESULTS
OF OPERATIONS INCLUDE THE FOLLOWING: GENERAL ECONOMIC CONDITIONS AND INTEREST
RATES; THE CYCLICAL AND SEASONAL NATURE OF THE COMPANY'S BUSINESSES; ADVERSE
WEATHER; 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 THE COMPANY'S MARKETS AND BUSINESSES;
COMPETITION; AVAILABILITY OF RAW MATERIALS; AND UNEXPECTED OPERATIONS
DIFFICULTIES. THESE AND OTHER FACTORS ARE DESCRIBED IN THE COMPANY'S MOST RECENT
ANNUAL REPORT ON FORM 10-K FOR THE FISCAL YEAR ENDED MARCH 31, 2002, AND THE
COMPANY'S QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2002,
WHICH ARE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.
Note Attachments:
1) Summary of Consolidated Earnings
2) Revenues and Earnings by Lines of Business (Quarter)
3) Revenues and Earnings by Lines of Business (Six Months)
4) Condensed Consolidated Balance Sheets
5) Condensed Consolidated Cash Flows
6) Housing Activity by Geographic Area
7) Supplemental Home Building Data
8) Supplemental Construction Products Data
Supplemental Construction Services Data
9) Home Building Quarterly Margin Schedules (FY2001-2003)
For additional information, contact at 214/981-5000:
Laurence E. Hirsch
Chairman and Chief Executive Officer
Leldon E. Echols
Executive Vice President and Chief Financial Officer
Sheila E. Gallagher
Vice President - Corporate Communications
-more-
Attachment 1
Centex Corporation and Subsidiaries
Summary of Consolidated Earnings
(dollar amounts in thousands, except per share data)
<Table>
<Caption>
Quarter Ended
September 30,
(unaudited)
---------------------------------------------------
2002 2001 Change
--------------- -------------- --------------
Revenues $ 2,083,769 $ 1,883,633 11%
Earnings Before Income Taxes $ 165,297 $ 152,314 9%
Net Earnings $ 115,609 $ 93,389 24%
Earnings Per Share:
Basic $ 1.90 $ 1.54 23%
Diluted $ 1.83 $ 1.50 22%
Average Shares Outstanding:
Basic 60,875,672 60,568,258 1%
Diluted 63,036,290 62,289,902 1%
</Table>
<Table>
<Caption>
Six Months Ended
September 30,
(unaudited)
---------------------------------------------------
2002 2001 Change
--------------- -------------- --------------
Revenues $ 3,927,624 $ 3,592,778 9%
Earnings Before Income Taxes $ 290,769 $ 270,300 8%
Net Earnings $ 203,364 $ 168,605 21%
Earnings Per Share:
Basic $ 3.33 $ 2.79 19%
Diluted $ 3.21 $ 2.72 18%
Average Shares Outstanding:
Basic 61,021,424 60,372,690 1%
Diluted 63,369,784 62,100,699 2%
</Table>
Attachment 2
Centex Corporation and Subsidiaries
Revenues and Earnings by Lines of Business
(dollars in thousands)
<Table>
<Caption>
Quarter Ended
September 30,
(unaudited)
----------------------------------------------------
2002 2001 Change
--------------- --------------- -------------
REVENUES
Home Building $ 1,281,515 $ 1,170,721 9%
61% 62%
Financial Services 204,819 165,973 23%
10% 9%
Construction Products 135,993 129,545 5%
7% 7%
Construction Services 391,740 336,796 16%
19% 18%
Investment Real Estate 7,356 23,225 (68%)
-% 1%
Other (A) 62,346 57,373 9%
3% 3%
--------------- ---------------
Total $ 2,083,769 $ 1,883,633 11%
100% 100%
=============== ===============
OPERATING EARNINGS
Home Building $ 137,046 $ 122,978 11%
64% 61%
Financial Services 36,575 29,261 25%
17% 15%
Construction Products 26,743 22,531 19%
12% 11%
Construction Services 9,201 7,321 26%
4% 4%
Investment Real Estate 5,936 16,134 (63%)
3% 8%
Other (A) (247) 2,648 (109%)
-% 1%
--------------- ---------------
Total Operating Earnings 215,254 200,873 7%
100% 100%
Corporate General Expenses (14,447) (12,980)
Interest Expense (27,009) (29,342)
Minority Interest in Construction Products (8,501) (6,237)
--------------- ---------------
EARNINGS BEFORE INCOME TAXES $ 165,297 $ 152,314 9%
=============== ===============
</Table>
A) Includes Manufactured Homes and Home Services & Other for all periods
presented.
Attachment 3
Centex Corporation and Subsidiaries
Revenues and Earnings by Lines of Business
(dollars in thousands)
<Table>
<Caption>
Six Months Ended
September 30,
(unaudited)
----------------------------------------------------
2002 2001 Change
--------------- --------------- -------------
REVENUES
Home Building $ 2,387,233 $ 2,209,882 8%
61% 62%
Financial Services 385,359 328,566 17%
10% 9%
Construction Products 264,768 246,968 7%
7% 7%
Construction Services 752,461 650,429 16%
19% 18%
Investment Real Estate 13,301 47,323 (72%)
-% 1%
Other (A) 124,502 109,610 14%
3% 3%
--------------- ---------------
Total $ 3,927,624 $ 3,592,778 9%
100% 100%
=============== ===============
OPERATING EARNINGS
Home Building $ 245,670 $ 221,098 11%
64% 61%
Financial Services 60,881 54,431 12%
16% 15%
Construction Products 54,475 35,473 54%
14% 10%
Construction Services 17,281 14,779 17%
4% 4%
Investment Real Estate 9,333 31,389 (70%)
2% 9%
Other (A) (1,672) 3,010 (156%)
-% 1%
--------------- ---------------
Total Operating Earnings 385,968 360,180 7%
100% 100%
Corporate General Expenses (27,081) (24,226)
Interest Expense (50,735) (56,584)
Minority Interest in Construction Products (17,383) (9,070)
--------------- ---------------
EARNINGS BEFORE INCOME TAXES $ 290,769 $ 270,300 8%
=============== ===============
</Table>
(A) Includes Manufactured Homes and Home Services & Other for all periods
presented.
CENTEX CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Dollars in millions)
<Table>
<Caption>
----------------------------------- ----------------------------------
Centex Corporation and Subsidiaries Centex Corporation**
----------------------------------- ----------------------------------
September 30, March 31, September 30, March 31,
2002* 2002 2002* 2002
----------------------------------- ----------------------------------
ASSETS
Cash -
Unrestricted $ 63 $ 220 $ 40 $ 193
Restricted 127 106 6 5
Receivables -
Residential Mortgage Loans Held for Investment 3,797 3,254 - -
Residential Mortgage Loans Held for Sale 202 242 - -
Other Receivables 665 567 479 419
Inventories -
Homebuilding 3,182 2,599 3,182 2,599
Construction Products and Other 122 105 76 76
Investments (primarily in CDC) 417 364 872 862
Property and Equipment, net 724 720 682 672
Goodwill 334 350 316 333
Deferred Charges and Other Assets 419 458 126 176
--------------- --------------- --------------- --------------
$ 10,052 $ 8,985 $ 5,779 $ 5,335
=============== =============== =============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts Payable and Accrued Liabilities $ 1,462 $ 1,438 $ 1,237 $ 1,275
Debt
Non-Financial Services 2,077 1,792 2,077 1,792
Financial Services 4,046 3,485 - -
Minority Stockholders' Interest 162 153 160 151
Stockholders' Equity 2,305 2,117 2,305 2,117
--------------- --------------- --------------- --------------
$ 10,052 $ 8,985 $ 5,779 $ 5,335
=============== =============== =============== ==============
<Caption>
----------------------------------
Financial Services
----------------------------------
September 30, March 31,
2002* 2002
----------------------------------
ASSETS
Cash -
Unrestricted $ 23 $ 27
Restricted 121 101
Receivables -
Residential Mortgage Loans Held for Investment 3,797 3,254
Residential Mortgage Loans Held for Sale 202 242
Other Receivables 186 148
Inventories -
Homebuilding - -
Construction Products and Other 46 29
Investments (primarily in CDC) - -
Property and Equipment, net 42 48
Goodwill 18 17
Deferred Charges and Other Assets 293 282
--------------- ---------------
$ 4,728 $ 4,148
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts Payable and Accrued Liabilities $ 338 $ 351
Debt
Non-Financial Services - -
Financial Services 4,046 3,485
Minority Stockholders' Interest 2 2
Stockholders' Equity 342 310
--------------- ---------------
$ 4,728 $ 4,148
=============== ===============
</Table>
* September 30, 2002 balances are unaudited.
** 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.
CENTEX CORPORATION AND SUBSIDIARIES
Condensed Consolidated Cash Flows
(Dollars in millions)
<Table>
<Caption>
----------------------------------- -----------------------------------
Centex Corporation and Subsidiaries Centex Corporation**
----------------------------------- -----------------------------------
For the Six Months Ended September 30, For the Six Months Ended September 30,
----------------------------------- -----------------------------------
2002* 2001* 2002* 2001*
----------------------------------- -----------------------------------
CASH FLOWS - OPERATING ACTIVITIES
Net Earnings $ 203 $ 169 $ 136 $ 135
Adjustments -
Depreciation and Amortization 48 44 40 37
Other Noncash Adjustments 50 14 45 18
Decrease (Increase) in Loans Held for Sale 40 (57) - -
Increase in Inventories (594) (355) (576) (351)
Other Operating Activities (92) (36) (15) 18
--------------- --------------- --------------- ----------------
(345) (221) (370) (143)
--------------- --------------- --------------- ----------------
CASH FLOWS - INVESTING ACTIVITIES
Increase in Loans Held for Investment (558) (806) - (6)
Other Investing Activities (81) (114) (74) (111)
--------------- --------------- --------------- ----------------
(639) (920) (74) (117)
--------------- --------------- --------------- ----------------
CASH FLOWS - FINANCING ACTIVITIES
Increase in Short-Term Debt, net 533 976 138 369
Issuance (Repayment) of Long-Term Debt, net 314 159 148 (122)
Other Financing Activities (20) 10 5 17
--------------- --------------- --------------- ----------------
827 1,145 291 264
--------------- --------------- --------------- ----------------
Net Increase in Cash and Cash Equivalents (157) 4 (153) 4
Cash and Cash Equivalents at Beginning of Period 220 58 193 46
--------------- --------------- --------------- ----------------
Cash and Cash Equivalents at End of Period $ 63 $ 62 $ 40 $ 50
=============== =============== =============== ================
<Caption>
-----------------------------------
Financial Services
-----------------------------------
For the Six Months Ended September 30,
-----------------------------------
2002* 2001*
-----------------------------------
CASH FLOWS - OPERATING ACTIVITIES
Net Earnings $ 67 $ 34
Adjustments -
Depreciation and Amortization 8 7
Other Noncash Adjustments 5 (4)
Decrease (Increase) in Loans Held for Sale 40 (57)
Increase in Inventories (18) (4)
Other Operating Activities (77) (54)
--------------- ----------------
25 (78)
--------------- ----------------
CASH FLOWS - INVESTING ACTIVITIES
Increase in Loans Held for Investment (558) (800)
Other Investing Activities (7) (3)
--------------- ----------------
(565) (803)
--------------- ----------------
CASH FLOWS - FINANCING ACTIVITIES
Increase in Short-Term Debt, net 395 607
Issuance (Repayment) of Long-Term Debt, net 166 281
Other Financing Activities (25) (7)
--------------- ----------------
536 881
--------------- ----------------
Net Increase in Cash and Cash Equivalents (4) -
Cash and Cash Equivalents at Beginning of Period 27 12
--------------- ----------------
Cash and Cash Equivalents at End of Period $ 23 $ 12
=============== ================
</Table>
* September 30, 2002 and 2001 balances are unaudited.
** 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 statements of cash
flows.
Attachment 6
Centex Corporation and Subsidiaries
Housing Activity by Geographic Area
<Table>
<Caption>
Closings
------------------------------------------------------------------------------------------
Quarter Ended September 30, Six Months Ended September 30,
----------------------------------------- ---------------------------------------------
2002 2001 Change 2002 2001 Change
------------ ------------ ------------ ------------- ------------ -------------
Mid-Atlantic 998 908 10% 1,943 1,789 9%
Southeast 1,111 1,012 10% 2,025 1,987 2%
Midwest 1,034 937 10% 1,906 1,644 16%
Southwest 1,791 1,615 11% 3,290 2,985 10%
West Coast 854 946 (10%) 1,619 1,863 (13%)
------------ ------------ ------------- ------------
5,788 5,418 7% 10,783 10,268 5%
============ ============ ============= ============
</Table>
<Table>
<Caption>
Sales (Orders) Backlog
---------------------------------------------
9/30/02 9/30/01 Change
------------- ------------ -------------
Mid-Atlantic 2,045 1,407 45%
Southeast 2,904 2,291 27%
Midwest 2,603 2,122 23%
Southwest 3,108 2,770 12%
West Coast 1,959 1,388 41%
------------- ------------
12,619 9,978 26%
============= ============
</Table>
<Table>
<Caption>
Sales (Orders)
------------------------------------------------------------------------------------------
Quarter Ended September 30, Six Months Ended September 30,
----------------------------------------- ---------------------------------------------
2002 2001 Change 2002 2001 Change
------------ ------------ ------------ ------------- ------------ -------------
Mid-Atlantic 1,243 823 51% 2,485 1,752 42%
Southeast 1,307 1,137 15% 2,614 2,342 12%
Midwest 1,350 806 67% 2,416 1,729 40%
Southwest 2,051 1,604 28% 4,037 3,209 26%
West Coast 1,306 874 49% 2,476 1,870 32%
------------ ------------ ------------- ------------
7,257 5,244 38% 14,028 10,902 29%
============ ============ ============= ============
</Table>
Effective with the June 30, 2002 quarter's release, Centex has realigned its
conventional home building operating units into the above newly designated
geographic areas.
Attachment 7
Centex Corporation and Subsidiaries
Supplemental Home Building Data
<Table>
<Caption>
(dollars in millions, except per unit data)
Quarter Ended September 30,
---------------------------------------------------
2002 2001
------------------------ ------------------------
Housing Revenues $ 1,281.5 100.0% $ 1,170.7 100.0%
Cost of Sales (947.5) (73.9%) (868.8) (74.2%)
Selling, General & Administrative (196.9) (15.4%) (178.9) (15.3%)
----------- ---------- ----------- ----------
OPERATING EARNINGS $ 137.1 10.7% $ 123.0 10.5%
=========== ========== =========== ==========
Units Closed 5,788 5,418
Unit Sales Price $218,167 $214,004
% Change 1.9% 5.0%
Operating Earnings per Unit $23,678 $22,698
% Change 4.3% 24.2%
<Caption>
(dollars in millions, except per unit data)
Six Months Ended September 30,
--------------------------------------------------
2002 2001
------------------------ -----------------------
Housing Revenues $ 2,387.2 100.0% $ 2,209.9 100.0%
Cost of Sales (1,759.6) (73.7%) (1,641.1) (74.3%)
Selling, General & Administrative (381.9) (16.0%) (347.7) (15.7%)
----------- ---------- ---------- -----------
OPERATING EARNINGS $ 245.7 10.3% $ 221.1 10.0%
=========== ========== ========== ===========
Units Closed 10,783 10,268
Unit Sales Price $216,156 $212,469
% Change 1.7% 6.1%
Operating Earnings per Unit $22,783 $21,533
% Change 5.8% 23.7%
</Table>
Attachment 8
Centex Corporation and Subsidiaries
SUPPLEMENTAL CONSTRUCTION PRODUCTS DATA
(volumes in thousands, except Gypsum Wallboard)
<Table>
<Caption>
Quarter Ended September 30, Six Months Ended September 30,
-------------------------------------- ---------------------------------------
2002 2001 Change 2002 2001 Change
----------- ------------ --------- ----------- ------------ ------------
Cement
Sales Volumes (Tons) 677 720 (6%) 1,322 1,393 (5%)
Average Net Sales Price $ 68.10 $ 68.87 (1%) $ 67.99 $ 68.88 (1%)
Gypsum Wallboard
Sales Volumes (MMSF) 491 504 (3%) 945 975 (3%)
Average Net Sales Price $ 89.48 $ 71.12 26% $ 90.94 $ 64.67 41%
Paperboard
Sales Volumes (Tons) 55 54 2% 111 104 7%
Average Net Sales Price $ 405.50 $ 417.51 (3%) $ 392.40 $ 395.27 (1%)
Concrete
Sales Volumes (Cubic Yards) 196 187 5% 371 414 (10%)
Average Net Sales Price $ 53.25 $ 56.63 (6%) $ 54.02 $ 55.67 (3%)
Aggregates
Sales Volumes (Tons) 1,254 1,274 (2%) 2,498 2,419 3%
Average Net Sales Price $ 4.17 $ 4.46 (7%) $ 4.18 $ 4.27 (2%)
</Table>
SUPPLEMENTAL CONSTRUCTION SERVICES DATA
(dollars in millions)
<Table>
<Caption>
Quarter Ended September 30, Six Months Ended September 30,
-------------------------------------- ---------------------------------------
2002 2001 Change 2002 2001 Change
----------- ------------ --------- ----------- ------------ ------------
New Contracts $ 157 $ 387 (59%) $ 429 $ 777 (45%)
=========== ============ =========== ============
Backlog at September 30, $ 1,857 $ 2,149 (14%) $ 1,857 $ 2,149 (14%)
=========== ============ =========== ============
</Table>
Attachment 9
Centex Corporation and Subsidiaries
Home Building Margins - Quarterly Summary
<Table>
<Caption>
For the Quarters Ending,
-----------------------------------------------------------------------------------------
June 30, 2000 September 30, 2000 December 31, 2000 March 31, 2001
--------------------- -------------------- --------------------- ---------------------
Housing Revenues $887.0 100.0% $1,027.0 100.0% $1,038.8 100.0% $1,403.4 100.0%
Cost of Sales (679.5) (76.6%) (789.3) (76.9%) (782.4) (75.3%) (1,053.7) (75.1%)
--------- --------- --------- --------- --------- ---------- ---------- ---------
GROSS MARGIN 207.5 23.4% 237.7 23.1% 256.4 24.7% 349.7 24.9%
Selling, General & Administrative (135.0) (15.2%) (148.1) (14.4%) (155.8) (15.0%) (187.0) (13.3%)
--------- --------- --------- --------- --------- ---------- ---------- ---------
OPERATING EARNINGS $72.5 8.2% $89.6 8.7% $100.6 9.7% $162.7 11.6%
========= ========= ========= ========= ========= ========== ========== =========
Units Closed 4,408 4,901 4,893 6,457
Unit Sales Price $196,314 $203,900 $208,328 $212,165
% Change - Prior Year 4.1% 8.6% 10.0% 7.2%
OPERATING EARNINGS/UNIT $16,459 $18,274 $20,568 $25,198
% Change - Prior Year 9.5% 15.2% 26.1% 26.5%
GROSS MARGIN PER UNIT $47,074 $48,500 $52,401 $54,158
% Change - Prior Year 6.9% 11.4% 19.8% 20.5%
SG&A Per Unit $30,626 $30,218 $31,841 $28,961
% Change - Prior Year 5.5% 9.2% 16.1% 15.7%
<Caption>
Fiscal Year Total
March 31, 2001
-------------------
Housing Revenues $4,356.2 100.0%
Cost of Sales (3,304.9) (75.9%)
--------- ---------
GROSS MARGIN 1,051.3 24.1%
Selling, General & Administrative (625.9) (14.3%)
--------- ---------
OPERATING EARNINGS $425.4 9.8%
========= =========
Units Closed 20,659
Unit Sales Price $205,913
% Change - Prior Year 7.5%
OPERATING EARNINGS/UNIT $20,594
% Change - Prior Year 20.4%
GROSS MARGIN PER UNIT $50,888
% Change - Prior Year 15.3%
SG&A Per Unit $30,297
% Change - Prior Year 12.0%
</Table>
<Table>
<Caption>
For the Quarters Ending,
-----------------------------------------------------------------------------------------
June 30, 2001 September 30, 2001 December 31, 2001 March 31, 2002
--------------------- -------------------- --------------------- ---------------------
Housing Revenues $1,039.2 100.0% $1,170.7 100.0% $1,210.7 100.0% $1,564.2 100.0%
Cost of Sales (772.4) (74.4%) (868.8) (74.2%) (898.1) (74.2%) (1,174.2) (75.1%)
--------- --------- --------- --------- --------- ---------- ---------- ---------
GROSS MARGIN 266.8 25.6% 301.9 25.8% 312.6 25.8% 390.0 24.9%
Selling, General & Administrative (168.7) (16.2%) (178.9) (15.3%) (178.1) (14.7%) (218.1) (13.9%)
--------- --------- --------- --------- --------- ---------- ---------- ---------
OPERATING EARNINGS $98.1 9.4% $123.0 10.5% $134.5 11.1% $171.9 11.0%
========= ========= ========= ========= ========= ========== ========== =========
Units Closed 4,850 5,418 5,567 7,125
Unit Sales Price $210,754 $214,004 $212,400 $216,611
% Change - Prior Year 7.4% 5.0% 2.0% 2.1%
OPERATING EARNINGS/UNIT $20,231 $22,698 $24,162 $24,120
% Change - Prior Year 22.9% 24.2% 17.5% (4.3%)
GROSS MARGIN PER UNIT $55,010 $55,722 $56,152 $54,737
% Change - Prior Year 16.9% 14.9% 7.2% 1.1%
SG&A Per Unit $34,784 $33,020 $31,992 $30,611
% Change - Prior Year 13.6% 9.3% 0.5% 5.7%
<Caption>
Fiscal Year Total
March 31, 2002
-------------------
Housing Revenues $4,984.8 100.0%
Cost of Sales (3,713.5) (74.5%)
--------- ---------
GROSS MARGIN 1,271.3 25.5%
Selling, General & Administrative (743.8) (14.9%)
--------- ---------
OPERATING EARNINGS $527.5 10.6%
========= =========
Units Closed 22,960
Unit Sales Price $213,738
% Change - Prior Year 3.8%
OPERATING EARNINGS/UNIT $22,973
% Change - Prior Year 11.6%
GROSS MARGIN PER UNIT $55,370
% Change - Prior Year 8.8%
SG&A Per Unit $32,395
% Change - Prior Year 6.9%
</Table>
<Table>
<Caption>
For the Quarters Ending,
-----------------------------------------------------------------------------------------
June 30, 2002 September 30, 2002 December 31, 2002 March 31, 2003
--------------------- -------------------- --------------------- ---------------------
Housing Revenues $1,105.7 100.0% $1,281.5 100.0%
Cost of Sales (812.1) (73.5%) (947.5) (73.9%)
--------- --------- --------- --------- --------- ---------- ---------- ---------
GROSS MARGIN 293.6 26.5% 334.0 26.1%
Selling, General & Administrative (185.0) (16.7%) (196.9) (15.4%)
--------- --------- --------- --------- --------- ---------- ---------- ---------
OPERATING EARNINGS $108.6 9.8% $137.1 10.7%
========= ========= ========= ========= ========= ========== ========== =========
Units Closed 4,995 5,788
Unit Sales Price $213,825 $218,167
% Change - Prior Year 1.5% 1.9%
OPERATING EARNINGS/UNIT $21,747 $23,678
% Change - Prior Year 7.5% 4.3%
GROSS MARGIN PER UNIT $58,779 $57,706
% Change - Prior Year 6.9% 3.6%
SG&A Per Unit $37,037 $34,019
% Change - Prior Year 6.5% 3.0%
<Caption>
Fiscal Year Total
March 31, 2003
-------------------
Housing Revenues
Cost of Sales
--------- ---------
GROSS MARGIN
Selling, General & Administrative
--------- ---------
OPERATING EARNINGS
========= =========
Units Closed
Unit Sales Price
% Change - Prior Year
OPERATING EARNINGS/UNIT
% Change - Prior Year
GROSS MARGIN PER UNIT
% Change - Prior Year
SG&A Per Unit
% Change - Prior Year
</Table>