EX-99.1 3 d00468exv99w1.txt EX-99.1 PRESS RELEASE DATED OCTOBER 22, 2002 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. -more- 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.
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%
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.
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%
-more- 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
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%) =========== ===========
-more- 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
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%) =========== ===========
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.
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% =========== ===========
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. -more- CENTEX REPORTS RECORD SECOND QUARTER, SIX MONTH RESULTS, PAGE 5 OF 8
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% =========== ===========
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. -more- 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. -more- 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. -more- 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)
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%
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%
Attachment 2 Centex Corporation and Subsidiaries Revenues and Earnings by Lines of Business (dollars in thousands)
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% =============== ===============
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)
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% =============== ===============
(A) Includes Manufactured Homes and Home Services & Other for all periods presented. CENTEX CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Dollars in millions)
----------------------------------- ---------------------------------- 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 =============== =============== =============== ============== ---------------------------------- 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 =============== ===============
* 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)
----------------------------------- ----------------------------------- 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 =============== =============== =============== ================ ----------------------------------- 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 =============== ================
* 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
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% ============ ============ ============= ============
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% ============= ============
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% ============ ============ ============= ============
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
(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% (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%
Attachment 8 Centex Corporation and Subsidiaries SUPPLEMENTAL CONSTRUCTION PRODUCTS DATA (volumes in thousands, except Gypsum Wallboard)
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%)
SUPPLEMENTAL CONSTRUCTION SERVICES DATA (dollars in millions)
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%) =========== ============ =========== ============
Attachment 9 Centex Corporation and Subsidiaries Home Building Margins - Quarterly Summary
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% 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%
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% 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%
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% 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