EX-99.1 3 d02634exv99w1.txt EX-99.1 PRESS RELEASE DATED JANUARY 22, 2003 EXHIBIT 99.1 [CENTEX LETTERHEAD] NEWS RELEASE -------------------------------------------------------------------------------- FOR IMMEDIATE RELEASE CENTEX CORPORATION THIRD QUARTER NET EARNINGS RISE 62% TO ALL-TIME HIGH HOME SALES UP 27% IN THIRD QUARTER (DALLAS, TX January 22, 2003): Centex Corporation (NYSE: CTX) today reported the highest quarterly and nine month results in its history for the periods ended December 31, 2002 - the third quarter and first nine months of fiscal 2003. HIGHLIGHTS OF THE QUARTER ENDED DECEMBER 31, 2002 WERE AS FOLLOWS: - REFLECTING STRENGTH IN EVERY MAJOR OPERATING UNIT, DILUTED EARNINGS PER SHARE ROSE 62% TO $2.50, A RECORD FOR ANY QUARTER IN CENTEX HISTORY. - AS A RESULT OF SALES INCREASES IN EVERY MAJOR LINE OF BUSINESS, TOTAL REVENUES INCREASED 22% TO $2.3 BILLION, ALSO A QUARTERLY RECORD. - YEAR-OVER-YEAR HOME CLOSINGS JUMPED 17% TO 6,509 UNITS. - THE HOME BUILDING OPERATING MARGIN IMPROVED 60 BASIS POINTS TO 11.7%, DUE TO HIGHER UNIT VOLUME AND LOWER BRICK-AND-MORTAR COSTS. - HOME SALES, WHICH INCLUDED NO ACQUISITIONS, ROSE 27% OVER THE YEAR-AGO QUARTER, AND THE BACKLOG OF HOMES SOLD BUT NOT CLOSED INCREASED 32%. THE AVERAGE NUMBER OF NEIGHBORHOODS GREW 12%. Centex said that due to the strong third quarter results, the company is raising its earnings guidance for fiscal 2003 to $8.45--$8.60 per diluted share, up from $8.00--$8.30. CENTEX'S SENIOR MANAGEMENT WILL CONDUCT A CONFERENCE CALL TO DISCUSS THE THIRD QUARTER FINANCIAL RESULTS AND OTHER MATTERS AT 11 A.M. EASTERN TIME (10 A.M. CENTRAL TIME) TODAY. THE CONFERENCE CALL WILL BE WEBCAST SIMULTANEOUSLY ON THE CENTEX WEB SITE AT http://www.centex.com. A REPLAY OF THE CALL WILL BE AVAILABLE ON THAT SITE UNTIL THURSDAY, FEBRUARY 20, 2003. Net earnings for the third quarter this year were $155,884,000 or $2.50 per diluted share, a 62% increase over $96,145,000 or $1.54 per diluted share for the same quarter a year ago. Current quarter revenues of $2,304,872,000 were 22% above $1,894,484,000 for the same quarter last year. -more- CENTEX REPORTS RECORD THIRD QUARTER, NINE MONTH RESULTS, PAGE 2 OF 8 Centex's net earnings for the first nine months of fiscal 2003 were $359,248,000, a 36% improvement over $264,750,000 for the same period last year. Diluted earnings per share of $5.71 were 34% higher than $4.26 per diluted share for the same period a year ago. Revenues for the first nine months of fiscal 2003 totaled $6,232,496,000, 14% higher than $5,487,262,000 for the same period in fiscal 2002. Net earnings for the nine months improved by a slightly higher percentage than diluted earnings per share due to more average shares outstanding in the fiscal 2003 period. For the first nine months of fiscal 2003, Centex's annualized rate of return on beginning stockholders' equity was 22.6%. Through its subsidiaries, Dallas-based Centex ranks among the nation's leading home builders, non-bank-affiliated retail mortgage originators, and general building contractors. The company also has operations in investment real estate and home services and currently owns approximately 65% of a publicly held construction products company. HOME BUILDING Operating earnings from Centex Homes were $171.6 million for this year's third quarter, 28% higher than $134.5 million for the third quarter last year. Revenues were $1.47 billion for the quarter this year, 21% above revenues of $1.21 billion for the same quarter last year. The 28% increase in operating earnings was achieved on a 17% gain in closings, and operating margins improved to 11.7% for the third quarter this year from 11.1% for the same quarter a year ago. The margin increase was due primarily to continued cost reductions resulting from lower direct construction costs and process improvements, combined with overhead leverage. Unit orders for this year's third quarter were 27% above last year's levels. The record third quarter backlog of sold but not delivered homes at December 31 was 32% above last year.
CENTEX HOMES Quarter Ended Dec. 31, ------------------------------------------------------------ 2002 2001 Change ----------------- ----------------- ---------------- Closings 6,509 5,567 17% Sales (Orders) 6,417 5,065 27% Backlog 12,527 9,476 32% Unit Sales Price $ 219,909 $ 212,400 4% Operating Earnings/Unit $ 26,368 $ 24,162 9% Operating Margin 11.7% 11.1%
-more- CENTEX REPORTS RECORD THIRD QUARTER, NINE MONTH RESULTS, PAGE 3 OF 8 Operating earnings from Centex Homes were $417.3 million for the nine-month period this year, 17% higher than $355.6 million for the year-ago period. For the current nine months, revenues from Centex Homes were $3.86 billion, 13% higher than revenues of $3.42 billion for the same period in fiscal 2002.
CENTEX HOMES Nine Months Ended Dec. 31, ------------------------------------------------------------ 2002 2001 Change ----------------- ----------------- ---------------- Closings 17,292 15,835 9% Sales (Orders) 20,445 15,967 28% Backlog 12,527 9,476 32% Unit Sales Price $ 217,568 $ 212,445 2% Operating Earnings/Unit $ 24,132 $ 22,457 7% Operating Margin 10.8% 10.4%
FINANCIAL SERVICES Operating earnings from Financial Services for the third quarter this year were $50.2 million, 50% higher than $33.4 million for the same quarter in fiscal 2002. CTX Mortgage Company benefited from low interest rate levels and Centex Home Equity's portfolio continued to grow. Third quarter revenues from Financial Services were $223.1 million, 22% higher than $182.8 million for the same quarter a year ago. Financial Services operating earnings for the nine-month period this year were $111.1 million, 27% higher than $87.8 million for the year-ago period. For the current nine months, Financial Services revenues reached $608.4 million, 19% above revenues of $511.4 million for the nine-month period in fiscal 2002. CTX MORTGAGE COMPANY Operating earnings from CTX Mortgage Company (CTX) and related companies totaled $38.2 million for the quarter this year, a 50% improvement over $25.4 million for the third quarter last year. CTX Mortgage's "capture" rate of Centex Homes' non-cash buyers was 72% for the third quarter this year compared to 73% for the same quarter in fiscal 2002. Refinancings accounted for 54% of total originations for the quarter this year compared to 49% for the third quarter a year ago. -more- CENTEX REPORTS RECORD THIRD QUARTER, NINE MONTH RESULTS, PAGE 4 OF 8
CTX MORTGAGE COMPANY Quarter Ended Dec. 31, ---------------------------------------------------- 2002 2001 Change -------------- -------------- -------------- Originations Builder 4,380 3,797 15% Retail 20,607 18,763 10% -------------- -------------- Total 24,987 22,560 11% ============== ============== Applications Builder 4,823 3,064 57% Retail 18,469 15,481 19% -------------- -------------- Total 23,292 18,545 26% ============== ============== Loan Volume (in billions) $ 4.15 $ 3.51 ============== ============== Average Loan Size $ 166,000 $ 155,600 ============== ============== Profit Per Loan $ 1,529 $ 1,127 ============== ==============
Operating earnings from CTX and related companies were $78.3 million for the nine-month period this year compared to earnings of $74.6 million for the same period a year ago.
CTX MORTGAGE COMPANY Nine Months Ended Dec. 31, ---------------------------------------------------- 2002 2001 Change -------------- -------------- -------------- Originations Builder 11,717 10,612 10% Retail 49,089 51,847 (5%) -------------- -------------- Total 60,806 62,459 (3%) ============== ============== Applications Builder 14,199 11,621 22% Retail 48,962 48,145 2% -------------- -------------- Total 63,161 59,766 6% ============== ============== Loan Volume (in billions) $ 9.97 $ 9.59 ============== ============== Average Loan Size $ 164,000 $ 153,500 ============== ============== Profit Per Loan $ 1,287 $ 1,194 ============== ==============
CENTEX HOME EQUITY COMPANY Centex Home Equity Company (CHEC) reported operating earnings of $12.0 million for the December 31 quarter this year, 44% higher than $8.3 million for the same quarter last year. -more- CENTEX REPORTS RECORD THIRD QUARTER, NINE MONTH RESULTS, PAGE 5 OF 8
CENTEX HOME EQUITY COMPANY Quarter Ended Dec. 31, ---------------------------------------------------- 2002 2001 Change -------------- -------------- -------------- Originations 8,049 7,136 13% ============== ============== Applications 65,534 45,391 44% ============== ============== Loan Volume (in billions) $ 0.70 $ 0.58 ============== ============== Average Loan Size $ 87,500 $ 81,900 ============== ==============
For the first nine months of fiscal 2003, CHEC reported operating earnings of $34.4 million, a 134% improvement over $14.7 million for the same period in fiscal 2002. CHEC's loan servicing portfolio on which it earns an interest rate spread under the "Portfolio Accounting Method" has reached $4.26 billion and continues to increase.
CENTEX HOME EQUITY COMPANY Nine Months Ended Dec. 31, --------------------------------------------------- 2002 2001 Change -------------- -------------- ------------ Originations 21,781 21,201 3% ============== ============== Applications 173,315 127,759 36% ============== ============== Loan Volume (in billions) $ 1.80 $ 1.64 ============== ============== Average Loan Size $ 82,800 $ 77,500 ============== ==============
Servicing Portfolio as of Dec. 31: 2002 2001 Change -------------- -------------- ------------ Number of Loans: Portfolio Accounting Method 56,573 41,834 Other 14,277 18,977 -------------- -------------- Total 70,850 60,811 17% ============== ============== Servicing Portfolio ($ in billions): Portfolio Accounting Method $ 4.26 $ 3.01 Other .85 1.18 -------------- -------------- Total $ 5.11 $ 4.19 22% ============== ==============
-more- CENTEX REPORTS RECORD THIRD QUARTER, NINE MONTH RESULTS, PAGE 6 OF 8 CONSTRUCTION PRODUCTS Operating earnings from Centex Construction Products, Inc. (CXP) were $25.8 million for the current quarter, 20% higher than $21.4 million for the same quarter a year ago. Increased gypsum wallboard and paperboard operating earnings and decreased interest expense were partially offset by lower cement and aggregates operating earnings. Current quarter revenues from Construction Products were $119.1 million, 6% higher than last year's third quarter revenues of $112.7 million. For the current nine months, CXP's operating earnings were $80.2 million, 41% higher than $56.9 million for the same period a year ago. Revenues from CXP were $383.9 million for the nine-month period this year, 7% above $359.7 million for the same period last year. CONSTRUCTION SERVICES Construction Services reported operating earnings of $9.3 million for the third quarter this year, a 3% improvement over earnings of $9.1 million for the third quarter of fiscal 2002. Revenues from Construction Services were $411.1 million for the quarter this year, 28% higher than revenues of $321.4 million for the same quarter a year ago. Construction Services received approximately $125 million of new contracts during the third quarter this year, 71% less than new contracts totaling $434 million for the year-ago quarter. The backlog of uncompleted construction projects at December 31, 2002 was $1.6 billion, 31% lower than the backlog of $2.3 billion at December 31, 2001. Operating earnings from Construction Services for the current nine-month period were $26.6 million, a 12% improvement over earnings of $23.9 million for the same period last year. Revenues for the current nine months were $1.16 billion, 20% higher than revenues of $971.8 million for the same period a year ago. INVESTMENT REAL ESTATE For the third quarter of fiscal 2003, Centex's Investment Real Estate operation, through which all investment property transactions are reported, had operating earnings of $20.1 million, 337% higher than $4.6 million for the year ago quarter. For the nine months this year, Investment Real Estate operating earnings were $29.4 million, 18% less than $36.0 million for the same period in fiscal 2002. Year-to-date results from Investment Real Estate reflect fewer land and property sales this year versus last. -more- CENTEX REPORTS RECORD THIRD QUARTER, NINE MONTH RESULTS, PAGE 7 OF 8 London, England-based Fairclough Homes, Centex's U.K.-based home building operation that is owned by Centex Development Company, L.P., closed 324 homes during the third quarter of fiscal 2003 versus 317 homes for the third quarter last year. Fairclough reported operating earnings, including land sale profit, of $5.6 million this year, 136% higher than operating earnings of $2.4 million for the same quarter last year. For the nine months ended December 31, 2002, Fairclough delivered 976 homes and had operating earnings of $9.4 million versus 931 homes and operating earnings of $8.0 million for the same period in fiscal 2002. OTHER Centex's Manufactured Homes operation, Cavco Industries, reported operating earnings of $1.1 million for the third quarter this year versus $681,000 for the same quarter last year. Manufactured Homes revenues for the third quarter this year were $35.0 million, 10% higher than $31.9 million for the same quarter a year ago. Cavco sold 959 manufactured homes for the third quarter this year, about the same as 955 units for the same quarter last year. For the current nine months, Manufactured Homes reported operating earnings of $2.1 million versus an operating loss of $810,000 for the same period last year. Manufactured Homes revenues were $104.0 million for the first nine months of fiscal 2003, 14% higher than $90.9 million for the same period a year ago. Manufactured Homes sold 2,963 units during the current nine-month period compared to 2,854 units for the same period a year ago. Home Services reported $83,000 of operating earnings for the third quarter this year compared to $1.7 million for the same quarter a year ago. For the current nine-month period, Home Services reported a loss of $2.5 million versus operating earnings of $6.2 million for the same period a year ago. OTHER DEVELOPMENTS In January, Centex Homes announced the closing of the previously announced acquisition of substantially all of the St. Louis and Indianapolis home building operations of The Jones Company, including approximately 5,000 controlled lots. For the twelve months ended Dec. 31, 2002, The Jones Company delivered 733 homes at an average sales price of $260,000. -more- CENTEX REPORTS RECORD THIRD QUARTER, NINE MONTH RESULTS, PAGE 8 OF 8 OUTLOOK Centex said that home sales (orders) continue to be robust as mortgage rates remain at historically low levels. Home Building margins continue to increase and fiscal 2003 results from that segment are expected to exceed fiscal 2002's record levels. Centex said it also expects all-time-high results from its Financial Services business in fiscal 2003. In summary, Centex said it expects fiscal 2003 to be its seventh consecutive year of record financial results. ### 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 QUARTERS ENDED JUNE 30, 2002 AND SEPTEMBER 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 Ended Dec. 31, 2002) (3) Revenues and Earnings by Lines of Business (Nine Months Ended Dec. 31, 2002) (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 Margin Data by Quarter, Fiscal 2001, Fiscal 2002 and Fiscal 2003 YTD 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 -more- Attachment 1 Centex Corporation and Subsidiaries Summary of Consolidated Earnings (dollar amounts in thousands, except per share data)
Quarter Ended December 31, (unaudited) --------------------------------------------------- 2002 2001 Change --------------- -------------- -------------- Revenues $ 2,304,872 $ 1,894,484 22% Earnings Before Income Taxes $ 222,883 $ 157,935 41% Net Earnings $ 155,884 $ 96,145 62% Earnings Per Share: Basic $ 2.58 $ 1.59 62% Diluted $ 2.50 $ 1.54 62% Average Shares Outstanding: Basic 60,447,468 60,554,328 --% Diluted 62,467,665 62,429,572 --%
Nine Months Ended December 31, (unaudited) --------------------------------------------------- 2002 2001 Change --------------- -------------- -------------- Revenues $ 6,232,496 $ 5,487,262 14% Earnings Before Income Taxes $ 513,652 $ 428,235 20% Net Earnings $ 359,248 $ 264,750 36% Earnings Per Share: Basic $ 5.91 $ 4.38 35% Diluted $ 5.71 $ 4.26 34% Average Shares Outstanding: Basic 60,829,409 60,433,456 1% Diluted 63,068,903 62,210,828 1%
Attachment 2 Centex Corporation and Subsidiaries Revenues and Earnings by Lines of Business (dollars in thousands)
Quarter Ended December 31, (unaudited) --------------------------------------------------- 2002 2001 Change --------------- -------------- -------------- REVENUES Home Building $ 1,468,459 $ 1,210,759 21% 64% 64% Financial Services 223,078 182,800 22% 10% 9% Construction Products 119,089 112,750 6% 5% 6% Construction Services 411,132 321,357 28% 18% 17% Investment Real Estate 25,785 9,730 165% 1% 1% Other (A) 57,329 57,088 --% 2% 3% --------------- -------------- Total $ 2,304,872 $ 1,894,484 22% 100% 100% =============== ============== OPERATING EARNINGS Home Building $ 171,627 $ 134,511 28% 62% 66% Financial Services 50,185 33,354 50% 18% 16% Construction Products 25,773 21,397 20% 9% 10% Construction Services 9,350 9,103 3% 3% 5% Investment Real Estate 20,080 4,593 337% 7% 2% Other (A) 1,233 2,414 (49%) 1% 1% --------------- -------------- Total Operating Earnings 278,248 205,372 35% 100% 100% Corporate General Expenses (13,755) (13,326) Interest Expense (33,545) (28,046) Minority Interest in Construction Products (8,065) (6,065) --------------- -------------- EARNINGS BEFORE INCOME TAXES $ 222,883 $ 157,935 41% =============== ==============
(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)
Nine Months Ended December 31, (unaudited) --------------------------------------------------- 2002 2001 Change --------------- -------------- -------------- REVENUES Home Building $ 3,855,692 $ 3,420,641 13% 62% 62% Financial Services 608,437 511,366 19% 10% 9% Construction Products 383,857 359,718 7% 6% 7% Construction Services 1,163,593 971,786 20% 18% 18% Investment Real Estate 39,086 57,053 (31%) 1% 1% Other (A) 181,831 166,698 9% 3% 3% --------------- -------------- Total $ 6,232,496 $ 5,487,262 14% 100% 100% =============== ============== OPERATING EARNINGS Home Building $ 417,297 $ 355,609 17% 63% 63% Financial Services 111,066 87,785 27% 17% 16% Construction Products 80,248 56,870 41% 12% 10% Construction Services 26,631 23,882 12% 4% 4% Investment Real Estate 29,413 35,982 (18%) 4% 6% Other (A) (439) 5,424 (108%) --% 1% --------------- -------------- Total Operating Earnings 664,216 565,552 17% 100% 100% Corporate General Expenses (40,836) (37,552) Interest Expense (84,280) (84,630) Minority Interest in Construction Products (25,448) (15,135) --------------- -------------- EARNINGS BEFORE INCOME TAXES $ 513,652 $ 428,235 20% =============== ==============
(A) Includes Manufactured Homes and Home Services & Other for all periods presented. Attachment 4 CENTEX CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Dollars in millions)
----------------------------------- ------------------------- ------------------------ Centex Corporation and Subsidiaries Centex Corporation** Financial Services ----------------------------------- ------------------------- ------------------------ December 31, March 31, December 31, March 31, December 31, March 31, 2002* 2002 2002* 2002 2002* 2002 ------------ ------------ ------------ ---------- ----------- ----------- ASSETS Cash - Unrestricted $ 57 $ 220 $ 40 $ 193 $ 17 $ 27 Restricted 130 106 9 5 121 101 Receivables - Residential Mortgage Loans Held for Investment 4,221 3,254 -- -- 4,221 3,254 Residential Mortgage Loans Held for Sale 212 242 -- -- 212 242 Other Receivables 646 567 447 419 199 148 Inventories - Homebuilding 3,452 2,599 3,452 2,599 -- -- Construction Products and Other 81 105 76 76 5 29 Investments (primarily in CDC) 394 364 758 862 -- -- Property and Equipment, net 709 720 667 672 42 48 Goodwill 334 350 317 333 17 17 Deferred Charges and Other Assets 382 458 115 176 267 282 ------------ ----------- ------------ ---------- ----------- ----------- $ 10,618 $ 8,985 $ 5,881 $ 5,335 $ 5,101 $ 4,148 ============ =========== ============ ========== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable and Accrued Liabilities $ 1,510 $ 1,438 $ 1,274 $ 1,275 $ 238 $ 351 Debt Non-Financial Services 1,985 1,792 1,985 1,792 -- -- Financial Services 4,499 3,485 -- -- 4,499 3,485 Minority Stockholders' Interest 169 153 167 151 2 2 Stockholders' Equity 2,455 2,117 2,455 2,117 362 310 ------------ ----------- ------------ ---------- ----------- ----------- $ 10,618 $ 8,985 $ 5,881 $ 5,335 $ 5,101 $ 4,148 ============ =========== ============ ========== =========== ===========
* December 31, 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. Attachment 5 CENTEX CORPORATION AND SUBSIDIARIES Condensed Consolidated Cash Flows (Dollars in millions)
-------------------------------------- -------------------------------------- Centex Corporation and Subsidiaries Centex Corporation** -------------------------------------- -------------------------------------- For the Nine Months Ended December 31, For the Nine Months Ended December 31, -------------------------------------- -------------------------------------- 2002* 2001* 2002* 2001* -------------------------------------- -------------------------------------- CASH FLOWS - OPERATING ACTIVITIES Net Earnings $ 359 $ 265 $ 258 $ 209 Adjustments - Depreciation and Amortization 72 66 60 54 Other Noncash Adjustments 49 (5) 21 -- Decrease (Increase) in Loans Held for Sale 30 (9) -- -- Increase in Inventories (830) (618) (854) (606) Other Operating Activities (4) (35) 175 (28) ------------------ --------------- --------------- ---------------- (324) (336) (340) (371) ------------------ --------------- --------------- ---------------- CASH FLOWS - INVESTING ACTIVITIES Increase in Loans Held for Investment (992) (1,227) -- -- Other Investing Activities (23) (79) (12) (75) ------------------ --------------- --------------- ---------------- (1,015) (1,306) (12) (75) ------------------ --------------- --------------- ---------------- CASH FLOWS - FINANCING ACTIVITIES Increase in Short-Term Debt, net 624 887 149 403 Issuance (Repayment) of Long-Term Debt, net 583 724 44 (16) Other Financing Activities (31) 20 6 46 ------------------ --------------- --------------- ---------------- 1,176 1,631 199 433 ------------------ --------------- --------------- ---------------- Net Increase in Cash and Cash Equivalents (163) (11) (153) (13) Cash and Cash Equivalents at Beginning of Period 220 58 193 46 ------------------ --------------- --------------- ---------------- Cash and Cash Equivalents at End of Period $ 57 $ 47 $ 40 $ 33 ================== =============== =============== ================ -------------------------------------- Financial Services -------------------------------------- For the Nine Months Ended December 31, -------------------------------------- 2002* 2001* -------------------------------------- CASH FLOWS - OPERATING ACTIVITIES Net Earnings $ 101 $ 56 Adjustments - Depreciation and Amortization 12 12 Other Noncash Adjustments 28 (5) Decrease (Increase) in Loans Held for Sale 30 (9) Increase in Inventories 24 (12) Other Operating Activities (179) (7) ------------------ --------------- 16 35 ------------------ --------------- CASH FLOWS - INVESTING ACTIVITIES Increase in Loans Held for Investment (992) (1,227) Other Investing Activities (11) (4) ------------------ --------------- (1,003) (1,231) ------------------ --------------- CASH FLOWS - FINANCING ACTIVITIES Increase in Short-Term Debt, net 475 484 Issuance (Repayment) of Long-Term Debt, net 539 740 Other Financing Activities (37) (26) ------------------ --------------- 977 1,198 ------------------ --------------- Net Increase in Cash and Cash Equivalents (10) 2 Cash and Cash Equivalents at Beginning of Period 27 12 ------------------ --------------- Cash and Cash Equivalents at End of Period $ 17 $ 14 ================== ===============
* December 31, 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 December 31, Nine Months Ended December 31, ----------------------------------------- --------------------------------------------- 2002 2001 Change 2002 2001 Change ------------ ------------ ------------ ------------- ------------ ------------- Mid-Atlantic 1,124 933 20% 3,067 2,722 13% Southeast 1,241 1,064 17% 3,266 3,051 7% Midwest 1,105 955 16% 3,011 2,599 16% Southwest 1,977 1,683 17% 5,267 4,668 13% West Coast 1,062 932 14% 2,681 2,795 (4%) ------------ ------------ ------------- ------------ 6,509 5,567 17% 17,292 15,835 9% ============ ============ ============= ============
Sales (Orders) Backlog --------------------------------------------- 12/31/02 12/31/01 Change ------------- ------------ ------------- Mid-Atlantic 1,996 1,402 42% Southeast 2,857 2,258 27% Midwest 2,610 2,000 31% Southwest 2,868 2,512 14% West Coast 2,196 1,304 68% ------------- ------------ 12,527 9,476 32% ============= ============
Sales (Orders) ------------------------------------------------------------------------------------------ Quarter Ended December 31, Nine Months Ended December 31, ----------------------------------------- --------------------------------------------- 2002 2001 Change 2002 2001 Change ------------ ------------ ------------ ------------- ------------ ------------- Mid-Atlantic 1,075 928 16% 3,560 2,680 33% Southeast 1,194 1,031 16% 3,808 3,373 13% Midwest 1,112 833 33% 3,528 2,562 38% Southwest 1,737 1,425 22% 5,774 4,634 25% West Coast 1,299 848 53% 3,775 2,718 39% ------------ ------------ ------------- ------------ 6,417 5,065 27% 20,445 15,967 28% ============ ============ ============ ============
Effective with the June 30, 2002 quarter's release, Centex 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 December 31, Nine Months Ended December 31, -------------------------------------------- --------------------------------------------- 2002 2001 2002 2001 -------------------- --------------------- ---------------------- -------------------- Revenues $ 1,468.5 100.0% $ 1,210.8 100.0% $ 3,855.7 100.0% $ 3,420.6 100.0% Cost of Sales (1,083.9) (73.8%) (898.3) (74.2%) (2,843.5) (73.7%) (2,539.3) (74.2%) Selling, General & Administrative (213.0) (14.5%) (178.0) (14.7%) (594.9) (15.5%) (525.7) (15.4%) ---------- --------- ---------- -------- ----------- --------- ---------- -------- OPERATING EARNINGS $ 171.6 11.7% $ 134.5 11.1% $ 417.3 10.8% $ 355.6 10.4% ========== ========= ========== ======== =========== ========= ========== ======== Units Closed 6,509 5,567 17,292 15,835 Unit Sales Price $ 219,909 $ 212,400 $ 217,568 $ 212,445 % Change 3.5% 2.0% 2.4% 4.6% Operating Earnings per Unit $ 26,368 $ 24,162 $ 24,132 $ 22,457 % Change 9.1% 17.5% 7.5% 21.4%
Attachment 8 Centex Corporation and Subsidiaries SUPPLEMENTAL CONSTRUCTION PRODUCTS DATA (volumes in thousands, except Gypsum Wallboard)
Quarter Ended December 31, Nine Months Ended December 31, ----------------------------------- --------------------------------------- 2002 2001 Change 2002 2001 Change --------- ---------- --------- ---------- ----------- ----------- Cement Sales Volumes (Tons) 576 602 (4%) $ 1,898 $ 1,995 (5%) Average Net Sales Price $ 66.77 $ 66.89 --% $ 67.62 $ 68.28 (1%) Gypsum Wallboard Sales Volumes (MMSF) 440 437 1% 1,385 1,412 (2%) Average Net Sales Price $ 89.03 $ 80.46 11% $ 90.33 $ 69.56 30% Paperboard Sales Volumes (Tons) 55 48 15% 166 152 9% Average Net Sales Price $ 428.46 $ 403.38 6% $ 404.43 $ 397.82 2% Concrete Sales Volumes (Cubic Yards) 151 127 19% 522 541 (4%) Average Net Sales Price $ 53.68 $ 56.66 (5%) $ 53.92 $ 55.90 (4%) Aggregates Sales Volumes (Tons) 868 937 (7%) 3,366 3,356 --% Average Net Sales Price $ 5.00 $ 4.45 12% $ 4.39 $ 4.32 2%
SUPPLEMENTAL CONSTRUCTION SERVICES DATA (dollars in millions)
Quarter Ended December 31, Nine Months Ended December 31, ----------------------------------- --------------------------------------- 2002 2001 Change 2002 2001 Change --------- ---------- --------- ---------- ----------- ----------- New Contracts $ 125 $ 434 (71%) $ 554 $ 1,212 (54%) ========= ========== ========== =========== Backlog at December 31, $ 1,571 $ 2,262 (31%) $ 1,571 $ 2,262 (31%) ========= ========== ========== ===========
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 --------------------- ------------------- ------------------- ------------------- 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 ------------------- 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 --------------------- ------------------- ------------------- ------------------- Revenues $1,039.2 100.0% $1,170.6 100.0% $1,210.8 100.0% $1,564.2 100.0% Cost of Sales (772.3) (74.4%) (868.7) (74.2%) (898.3) (74.2%) (1,174.2) (75.1%) --------- --------- --------- --------- --------- --------- --------- --------- GROSS MARGIN 266.9 25.6% 301.9 25.8% 312.5 25.8% 390.0 24.9% Selling, General & Administrative (168.8) (16.2%) (178.9) (15.3%) (178.0) (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 $ 55,031 $ 55,722 $ 56,134 $ 54,737 % Change - Prior Year 16.9% 14.9% 7.1% 1.1% SG&A Per Unit $ 34,804 $ 33,020 $ 31,974 $ 30,611 % Change - Prior Year 13.6% 9.3% 0.4% 5.7% Fiscal Year Total March 31, 2001 ------------------- 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 ------------------- ------------------- ------------------- ------------------- Revenues $1,105.7 100.0% $1,281.5 100.0% $1,468.5 100.0% Cost of Sales (812.1) (73.5%) (947.5) (73.9%) (1,083.9) (73.8%) --------- --------- --------- --------- --------- --------- --------- --------- GROSS MARGIN 293.6 26.5% 334.0 26.1% 384.6 26.2% Selling, General & Administrative (185.0) (16.7%) (196.9) (15.4%) (213.0) (14.5%) --------- --------- --------- --------- --------- --------- --------- --------- OPERATING EARNINGS $108.6 9.8% $137.1 10.7% $171.6 11.7% ========= ========= ========= ========= ========= ========= ========= ========= Units Closed 4,995 5,788 6,509 Unit Sales Price $213,825 $218,167 $219,909 % Change - Prior Year 1.5% 1.9% 3.5% OPERATING EARNINGS/UNIT $21,747 $23,678 $26,368 % Change - Prior Year 7.5% 4.3% 9.1% GROSS MARGIN PER UNIT $58,779 $57,706 $59,087 % Change - Prior Year 6.8% 3.6% 5.3% SG&A Per Unit $37,037 $34,019 $32,724 % Change - Prior Year 6.4% 3.0% 2.3% Fiscal Year Total March 31, 2003 ------------------- 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