8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):
July 26, 2005

Centex Corporation

(Exact name of registrant as specified in its charter)

Nevada (State or other jurisdiction of incorporation)	1-6776 (Commission File Number)	75-0778259 (IRS Employer Identification No.)
2728 N. Harwood Street, Dallas, Texas		75201
(Address of principal executive offices)		(Zip code)

Registrant’s telephone number including area code: (214) 981-5000

Not Applicable
(Former name or former address if changed from last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o       Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o       Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o       Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o       Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02. Results of Operations and Financial Condition
	Item 7.01. Regulatory FD Disclosure
	Item 8.01. Other Events
	Item 9.01. Financial Statements and Exhibits
SIGNATURES
EXHIBIT INDEX
Press Release

Item 2.02. Results of Operations and Financial Condition.

     On July 26, 2005, Centex Corporation, a Nevada corporation (the “Corporation”), announced its results of operations for the quarter ended June 30, 2005. A copy of the Corporation’s press release announcing these results is being furnished as Exhibit 99.1 hereto and is hereby incorporated in this Item 2.02 in its entirety by reference.

Item 7.01. Regulation FD Disclosure.

     On July 26, 2005, Centex Corporation, a Nevada corporation (the “Corporation”), announced its results of operations for the quarter ended June 30, 2005. A copy of the Corporation’s press release (the “Press Release”) announcing these results, other information and increased earnings per share guidance for the fiscal year ending March 31, 2006 is being furnished as Exhibit 99.1 hereto. The information in the Press Release under the captions “Other” and “Outlook” is furnished pursuant to this Item 7.01.

Item 8.01. Other Events.

     On July 26, 2005, Centex Corporation, a Nevada corporation (the “Corporation”), announced its results of operations for the quarter ended June 30, 2005. A copy of the Corporation’s press release (the “Press Release”) announcing these results is being furnished as Exhibit 99.1 hereto. The attachments to the Press Release identified as Attachments 1 through 9 are hereby filed pursuant to, and incorporated by reference in, this Item 8.01. No other information from the Press Release is filed pursuant to, or incorporated in, this Item 8.01.

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits

Exhibit
Number	Description
99.1	Press Release dated July 26, 2005.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CENTEX CORPORATION
By:	/s/ James R. Peacock III Name: James R. Peacock III Title:   Vice President, Deputy General Counsel and             Secretary

Date: July 26, 2005

EXHIBIT INDEX

Exhibit
Number	Description
99.1	Press Release dated July 26, 2005.

EX-99.1 2 d27137exv99w1.htm PRESS RELEASE

Exhibit 99.1

FOR IMMEDIATE RELEASE

For additional information, contact at (214) 981-5000:
Leldon E. Echols, Executive Vice President and Chief Financial Officer
Matthew G. Moyer, Vice President—Investor Relations
http://www.centex.com

CENTEX REPORTS RECORD FIRST QUARTER RESULTS

First Quarter Net Earnings Grow 32%
Raises Fiscal Year 2006 Earnings Guidance to a range of
$9.10 to $9.35 per diluted share

DALLAS – July 26, 2005: Centex Corporation (NYSE: CTX) today announced record first quarter revenues, operating earnings and diluted earnings per share.

Highlights of the quarter ended June 30, 2005 (compared to last year’s first quarter):

• Revenues increased 16% to $3.22 billion

• Net earnings grew 32% to $234 million

• Earnings per diluted share grew 29% to $1.74

• Domestic home building operating earnings increased 52% to $341 million

• Domestic home sales (orders) rose 15%; backlog rose 22% to 20,773 units

     “Overall, it was another excellent quarter at Centex with domestic home building operating earnings increasing by 52% and sales (orders) growing by 15%. We were also especially pleased by the 12% growth in unit closings with balanced contributions from increased closings per neighborhood and new neighborhood openings,” said Tim Eller, Chairman and CEO. “The outstanding first quarter earnings growth in our home building operations were somewhat tempered by lower year-over-year contributions from CTX Mortgage and our Construction Services business.”

Centex Corporation, Page 2 of 4

HOME BUILDING

Domestic

     Operating earnings from Centex Homes were $341 million for the first quarter this year, 52% higher than the first quarter a year ago. Fiscal 2006’s first quarter revenues from Centex Homes were $2.40 billion, 26% higher than the same quarter last year.

     The 52% increase in operating earnings was achieved on a 12% increase in closings to 8,235 homes in this year’s first quarter, as well as a 240 basis point improvement in the operating margin to 14.2%. The operating margin improvement was composed mainly of gross margin improvement, which was driven primarily by an increase in the average selling price of homes delivered, geographic mix and ongoing process improvement initiatives, partially offset by higher material and labor costs.

     New home orders for this year’s first quarter were 10,419 homes, 15% above last year’s level. The backlog of homes sold but not delivered at June 30, 2005 was 20,773 units, 22% higher than the backlog at the same time a year ago. On a dollar basis, backlog grew 31% to $6.58 billion.

International

     For this year’s first quarter, Fairclough closed 358 homes versus 314 homes for the same quarter last year. Operating earnings for the quarter were $10 million, a 32% increase over last year’s first quarter. Operating margin increased 20 basis points over last year to 7.8%.

FINANCIAL SERVICES

     Operating earnings from Financial Services for the first quarter this year were $48 million, a 17% decrease from the same quarter last year. Revenues from this segment were $304 million for the first quarter this year, 11% above the same quarter a year ago.

CTX Mortgage Company

     Operating earnings from CTX Mortgage Company totaled $21 million for the first quarter of fiscal year 2006, 34% lower than fiscal 2005’s first quarter, primarily reflecting industry-wide reductions in refinancing volume. Originations from Centex Homes’ closings increased 12% while retail originations fell 13%. CTX Mortgage provided mortgage loans to 75% of Centex Homes’ buyers during the first quarter.

Centex Home Equity Company

     Centex Home Equity Company (CHEC) reported operating earnings of $28 million for the first quarter of fiscal year 2006, an 8% improvement over last year’s first quarter. The increased earnings were driven by the growth in the loan portfolio offset by a slightly lower return on that portfolio. CHEC’s loan servicing portfolio, on which it earns an interest margin, reached $8.21 billion, growing 19% versus last year. The return earned on the servicing portfolio fell 16 basis points to 1.36% for the first fiscal quarter of 2006 due to an increase in short-term lending rates and competitive industry pricing.

-MORE-

Centex Corporation, Page 3 of 4

CONSTRUCTION SERVICES

     Operating earnings from Construction Services were $3 million for the first quarter this fiscal year, resulting in an operating margin of 0.7%, down 29 basis points from last year’s first quarter. New contracts for the quarter were approximately $718 million increasing the backlog of uncompleted construction contracts at June 30, 2005 to $2.35 billion, 43% more than at June 30, 2004. Operating margins in this backlog are anticipated to be higher than those posted this quarter and within historical averages.

OTHER

     The company repurchased 750,000 shares in the quarter at an average price of $68.38 per share. The company has approximately 2 million shares remaining in its current authorization. The company intends to continue to repurchase shares during the second fiscal quarter.

     Centex recently announced that it is exploring strategic alternatives for its London-based operations, Fairclough Homes. Centex has received and is evaluating expressions of interest concerning the possible sale of the division. If a decision is made to sell, the Board of Directors will determine the use of net proceeds, which may include additional share repurchases and investment in domestic home building operations.

OUTLOOK

     Based on current positive sales trends and the strength of the backlog, the company is raising its fiscal 2006 earnings per diluted share guidance to a range of $9.10 to $9.35, which would represent earnings per share growth of 19% to 22% over last year.

     Centex’s senior management will conduct a conference call to discuss the first quarter fiscal year 2006 financial results at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on Wednesday, July 27. The conference call, accompanied by a slide presentation, will be webcast simultaneously on the Centex Web site at http://www.centex.com. A replay of the call, as well as the presentation, will be archived on that site.

# # #

-MORE-

Centex Corporation, Page 4 of 4

Forward-Looking Statements. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when Centex is discussing its beliefs, estimates or expectations. Such statements include projections, forecasts, and plans and objectives of management for future operations and operating and financial performance, as well as any related assumptions. These statements are not historical facts or guarantees of future performance but instead represent only Centex’s belief at the time the statements were made regarding future events, which are subject to significant risks, uncertainties and other factors, many of which are outside of Centex’s control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. These risks and uncertainties are described in greater detail in Centex’s most recent Annual Report on Form 10-K for the fiscal year ended March 31, 2005 (including under the captions “Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), as well as recent Current Reports on Form 8-K, which are on file with the SEC and may be obtained free of charge through the website maintained by the SEC at http://www.sec.gov. All forward-looking statements made in this press release are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed in this press release will increase with the passage of time. Centex makes no commitment, and disclaims any duty, to update or revise any forward-looking statement to reflect future events or changes in Centex’s expectations.

NOTE ATTACHMENTS:
(1) Revenues and Earnings by Lines of Business
(2) Condensed Consolidated Balance Sheets
(3) Condensed Consolidated Cash Flows
(4) Supplemental Domestic Home Building Data
(5) Domestic Housing Activity by Geographic Area
(6) Domestic Housing Activity Dollar Values by Geographic Area
(7) Supplemental International Home Building Data
(8) Supplemental Financial Services Data
(9) Supplemental Financial Data

Attachment 1

Centex Corporation and Subsidiaries
Revenues and Earnings by Lines of Business
(dollars in thousands, except per share data)

	Quarter Ended
	June 30,
	(unaudited)
	2005			2004			Change
Revenues
Home Building	$	2,526,043		$	1,998,114			26	%
Financial Services		303,836			274,321			11	%
Construction Services		366,055			434,217			(16	%)
Other		24,690			59,421			(58	%)
Total	$	3,220,624		$	2,766,073			16	%
Operating Earnings
Home Building	$	350,760		$	231,120			52	%
Financial Services		47,730			57,574			(17	%)
Construction Services		2,696			4,466			(40	%)
Other		(2,761	)		7,342			(138	%)
Total Operating Earnings		398,425			300,502			33	%
Corporate General Expenses		(20,602	)		(19,585	)
Interest Expense		(3,374	)		(5,025	)
Earnings Before Income Taxes		374,449			275,892			36	%
Income Taxes		(140,779	)		(98,659	)
Net Earnings	$	233,670		$	177,233			32	%
Earnings Per Share — Basic	$	1.82		$	1.43			27	%
Earnings Per Share — Diluted	$	1.74		$	1.35			29	%
Average Shares Outstanding:
Basic		128,672,028			123,573,221			4	%
Diluted		134,584,442			130,926,818			3	%

Attachment 2

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

	Centex Corporation and Subsidiaries				Centex Corporation*				Financial Services
	June 30,		March 31,		June 30,		March 31,		June 30,		March 31,
	2005		2005		2005		2005		2005		2005
Assets
Cash -
Unrestricted	$	63	$	503	$	47	$	491	$	16		12
Restricted		419		378		53		53		366		325
Receivables -
Residential Mortgage Loans Held for Investment		8,207		7,914		—		—		8,207		7,914
Residential Mortgage Loans Held for Sale		2,021		1,775		—		—		2,021		1,775
Other Receivables		760		797		563		599		197		198
Inventories -
Homebuilding		7,792		7,072		7,792		7,072		—		—
Land Held Under Option Agreements not Owned		613		457		613		457		—		—
Other		32		33		27		27		5		6
Investments		185		164		807		736		—		—
Property and Equipment, net		163		162		120		119		43		43
Goodwill		254		253		242		241		12		12
Deferred Charges and Other Assets		640		503		381		334		259		169
	$	21,149	$	20,011	$	10,645	$	10,129	$	11,126	$	10,454
Liabilities and Stockholders’ Equity
Accounts Payable and Accrued Liabilities	$	2,195	$	2,304	$	1,978	$	2,145	$	223	$	114
Debt
Non-Financial Services		3,586		3,247		3,586		3,247		—		—
Financial Services		10,285		9,721		—		—		10,285		9,721
Minority Interests		600		458		598		456		2		2
Stockholders’ Equity		4,483		4,281		4,483		4,281		616		617
	$	21,149	$	20,011	$	10,645	$	10,129	$	11,126	$	10,454

* In the supplemental data presented above, “Centex Corporation” represents the consolidation of all subsidiaries other than those included in Financial Services. Transactions between Centex Corporation and Financial Services have been eliminated from the Centex Corporation and Subsidiaries balance sheets. We believe that separate disclosure of the consolidating information is useful because: the Financial Services subsidiaries operate in a distinctly different financial environment that generally requires significantly less equity to support their higher debt levels compared to the operations of our other subsidiaries; the Financial Services subsidiaries have structured their financing programs substantially on a stand-alone basis; and Centex Corporation has limited obligations with respect to the indebtedness of its Financial Services subsidiaries. Management uses this information in its financial and strategic planning.

Attachment 3

Centex Corporation and Subsidiaries
Condensed Consolidated Cash Flows
(Dollars in millions)
(unaudited)

	Centex Corporation and Subsidiaries						Centex Corporation*						Financial Services
	For the Quarter Ended June 30,						For the Quarter Ended June 30,						For the Quarter Ended June 30,
	2005			2004			2005			2004			2005			2004
Cash Flows — Operating Activities
Net Earnings	$	234		$	177		$	234		$	177		$	29		$	36
Adjustments -
Depreciation and Amortization		16			12			12			8			4			4
Other Noncash Adjustments		(89	)		24			(19	)		(29	)		(75	)		17
Increase in Loans Held for Sale		(245	)		(26	)		—			—			(245	)		(26	)
(Increase) Decrease in Inventories		(755	)		(528	)		(757	)		(529	)		2			1
Other Operating Activities		(141	)		(111	)		(167	)		(26	)		72			(103	)
		(980	)		(452	)		(697	)		(399	)		(213	)		(71	)
Cash Flows — Investing Activities
Increase in Loans Held for Investment		(318	)		(450	)		—			—			(318	)		(450	)
Other Investing Activities		(7	)		(40	)		(48	)		(20	)		(4	)		(2	)
		(325	)		(490	)		(48	)		(20	)		(322	)		(452	)
Cash Flows — Financing Activities
Increase in Short-Term Debt, net		421			220			181			—			240			220
Issuance of Long-Term Debt, net		488			690			164			391			324			299
Other Financing Activities		(43	)		4			(43	)		4			(25	)		—
		866			914			302			395			539			519
Effect of Exchange Rate on Cash		(1	)		1			(1	)		1			—			—
Net (Decrease) Increase in Cash and Cash Equivalents		(440	)		(27	)		(444	)		(23	)		4			(4	)
Cash and Cash Equivalents at Beginning of Period		503			179			491			161			12			18
Cash and Cash Equivalents at End of Period	$	63		$	152		$	47		$	138		$	16		$	14

* In the supplemental data presented above, “Centex Corporation” represents the consolidation of all subsidiaries other than those included in Financial Services. Transactions between Centex Corporation and Financial Services have been eliminated from the Centex Corporation and Subsidiaries cash flows. We believe that separate disclosure of the consolidating information is useful because: the Financial Services subsidiaries operate in a distinctly different financial environment that generally requires significantly less equity to support their higher debt levels compared to the operations of our other subsidiaries; the Financial Services subsidiaries have structured their financing programs substantially on a stand-alone basis; and Centex Corporation has limited obligations with respect to the indebtedness of its Financial Services subsidiaries. Management uses this information in its financial and strategic planning.

Attachment 4

Centex Corporation and Subsidiaries
Supplemental Home Building Data — Domestic Operations
(unaudited)

     (dollars in millions, except per unit data)

	Quarter Ended June 30,
	2005					2004
HOME BUILDING — DOMESTIC
Revenues — Housing	$	2,358.1		100.0	%		$	1,872.3		100.0	%
Cost of Sales — Housing		(1,673.6	)	(71.0	%)			(1,361.8	)	(72.7	%)
Gross Margin — Housing		684.5		29.0	%			510.5		27.3	%
Revenues — Land Sales & Other		41.0						26.8
Cost of Sales — Land Sales & Other		(37.1	)					(35.1	)
Gross Margin — Land Sales & Other		3.9						(8.3	)
Total Gross Margin		688.4		28.7	%			502.2		26.4	%
Selling, General & Administrative		(359.9	)	(15.0	%)			(286.4	)	(15.1	%)
Other Income		12.4		0.5	%			7.8		0.5	%
Operating Earnings	$	340.9		14.2	%		$	223.6		11.8	%
Units Closed		8,235						7,383
Average Unit Sales Price	$	286,354					$	253,592
% Change		12.9	%					9.0	%
Operating Earnings per Unit	$	41,397					$	30,284
% Change		36.7	%					22.8	%
Average Neighborhoods		605						570
% Change		6.1	%					2.2	%
LOT POSITION — DOMESTIC

	As of June 30,
	2005		2004		Change
Lot Owned and Controlled:
Lots Owned		106,584		82,853		29	%
Lots Controlled		179,186		129,315		39	%
Total		285,770		212,168		35	%

Attachment 5

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

	Closings
	Quarter Ended June 30,
	2005		2004		Change
Mid-Atlantic		1,545		1,303		19	%
Southeast		1,453		1,309		11	%
Midwest		1,565		1,524		3	%
Southwest		2,188		1,988		10	%
West Coast		1,484		1,259		18	%
		8,235		7,383		12	%

	Sales (Orders) Backlog
	As of June 30,
	2005		2004		Change
Mid-Atlantic		3,887		2,974		31	%
Southeast		5,388		4,324		25	%
Midwest		3,382		3,442		(2	%)
Southwest		4,513		3,216		40	%
West Coast		3,603		3,106		16	%
		20,773		17,062		22	%

	Sales (Orders)
	Quarter Ended June 30,
	2005		2004		Change
Mid-Atlantic		2,010		1,476		36	%
Southeast		1,835		1,926		(5	%)
Midwest		1,635		1,574		4	%
Southwest		3,013		2,335		29	%
West Coast		1,926		1,720		12	%
		10,419		9,031		15	%

Attachment 6

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

	Housing Revenues - Closings
	(dollars in millions)
	Quarter Ended June 30,
	2005		2004		Change
Mid-Atlantic	$	495.9	$	373.0		33	%
Southeast		395.2		317.2		25	%
Midwest		336.0		320.9		5	%
Southwest		379.2		314.2		21	%
West Coast		751.8		547.0		37	%
	$	2,358.1	$	1,872.3		26	%

	Sales (Orders) Backlog Value
	(dollars in millions)
	As of June 30,
	2005		2004		Change
Mid-Atlantic	$	1,399.8	$	990.7		41	%
Southeast		1,530.3		1,193.5		28	%
Midwest		739.0		691.3		7	%
Southwest		1,024.7		535.6		91	%
West Coast		1,885.2		1,592.5		18	%
	$	6,579.0	$	5,003.6		31	%

Attachment 7

Centex Corporation and Subsidiaries
Supplemental Home Building Data — International Operations
(unaudited)

     (dollars in millions, except per unit data)

	Quarter Ended June 30,
	2005					2004
HOME BUILDING — INTERNATIONAL
Revenues — Housing	$	126.9		100.0	%	$	94.7		100.0	%
Cost of Sales — Housing		(98.6	)	(77.7	%)		(72.0	)	(76.0	%)
Gross Margin — Housing		28.3		22.3	%		22.7		24.0	%
Revenues — Land Sales & Other		—					4.3
Cost of Sales — Land Sales & Other		—					(4.1	)
Gross Margin — Land Sales & Other		—					0.2
Total Gross Margin		28.3		22.3	%		22.9		23.1	%
Selling, General & Administrative		(18.7	)	(14.7	%)		(15.4	)	(15.5	%)
Other Income		0.3		0.2	%		—		—	%
Operating Earnings	$	9.9		7.8	%	$	7.5		7.6	%
Units Closed		358					314
Unit Sales		360					382
Plots Owned and Controlled		5,569					5,423
Average Unit Sales Price	$	354,363				$	301,666
% Change		17.5	%				6.4	%
Operating Earnings per Unit	$	27,531				$	23,984
% Change		14.8	%				40.4	%

Attachment 8

Centex Corporation and Subsidiaries
Supplemental Financial Services Data

CTX Mortgage Company

	Quarter Ended June 30,
	2005		2004		Change
Originations
Builder		5,619		5,019		12	%
Retail		12,311		14,154		(13	%)
Total		17,930		19,173		(6	%)
Applications
Builder		7,316		6,146		19	%
Retail		10,589		10,867		(3	%)
Total		17,905		17,013		5	%
Loan Volume (in billions)	$	3.82	$	3.50		9	%
Average Loan Size	$	213,100	$	182,600		17	%
Operating Profit per Loan	$	1,187	$	1,670		(29	%)

Centex Home Equity

	Quarter Ended June 30,
	2005			2004			Change
Originations		11,276			11,520			(2	%)
Applications		104,907			97,965			7	%
Loan Volume (in billions)	$	1.40		$	1.44			(3	%)
Average Loan Size	$	124,300		$	125,100			(1	%)
Earnings As a % of Average Portfolio Accounting Method Loans		1.36	%		1.52	%

Servicing Portfolio:	As of June 30,
	2005		2004		Change
Number of Loans:
Portfolio Accounting Method		85,120		78,331
Serviced for Others		17,501		13,253
Total		102,621		91,584		12	%
Servicing Portfolio (in billions):
Portfolio Accounting Method	$	8.21	$	6.92
Serviced for Others		1.56		0.94
Total	$	9.77	$	7.86		24	%

Attachment 9

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

	As of June 30, 2005			As of March 31, 2005			As of June 30, 2004
Debt/Capitalization *
Debt	$	3,586		$	3,247		$	2,808
Minority Interests		598			456			419
Less Minority Interests on Lot Options		(557	)		(416	)		(416	)
Stockholders’ Equity		4,483			4,281			3,266
Capitalization		8,110			7,568			6,077
Less Unrestricted Cash		(47	)		(491	)		(155	)
Net Capitalization	$	8,063		$	7,077		$	5,922
Debt-to-Capitalization Ratio		44.2	%		42.9	%		46.2	%
Net Debt-to-Capitalization Ratio		43.9	%		38.9	%		44.8	%
Consolidated Debt/Capitalization **
Debt	$	13,871		$	12,968		$	11,629
Minority Interests		600			458			421
Less Minority Interests on Lot Options		(557	)		(416	)		(416	)
Stockholders’ Equity		4,483			4,281			3,266
Capitalization		18,397			17,291			14,900
Less Unrestricted Cash		(63	)		(503	)		(182	)
Net Capitalization	$	18,334		$	16,788		$	14,718
Consolidated Debt-to-Capitalization Ratio		75.4	%		75.0	%		78.0	%
Consolidated Net Debt-to-Capitalization Ratio		75.3	%		74.2	%		77.8	%

* Capitalization includes debt, minority interest (excluding lot options), and stockholders’ equity. Capitalization presented above reflects Financial Services on an equity basis and does not include debt attributable to Financial Services.

** Consolidated capitalization includes debt, minority interest (excluding lot options), and stockholders’ equity, including Financial Services.

Net debt-to-capitalization ratios are provided reflecting net capitalization, including net debt (debt less unrestricted cash), minority interest (excluding lot options), and stockholders’ equity. See Attachments 2 and 3 of the Earnings Release for more information.

EX-99.1

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