EX-99.1 2 d35387exv99w1.htm PRESS RELEASE exv99w1
 

       
(CENTEX LOGO)     www.centex.com
P.O. Box 199000
Dallas, Texas 75219-9000

 

2728 North Harwood
Dallas, Texas 75201-1516

 

Phone: (214) 981-5000
N e w s R e l e a s e
FOR IMMEDIATE RELEASE
For additional information, contact at (214) 981-5000:
Leldon E. Echols, Executive Vice President and Chief Financial Officer
Matthew G. Moyer, Vice President—Investor Relations
http://www.centex.com
CENTEX REPORTS RECORD FOURTH QUARTER
AND FISCAL YEAR RESULTS
Fourth quarter earnings per diluted share of $3.04
Fiscal year 2006 earnings per diluted share of $9.71
DALLAS — April 26, 2006: Centex Corporation (NYSE: CTX) today announced record revenues, operating earnings and diluted earnings per share for the quarter ended March 31, 2006, as well as record results for the tenth consecutive fiscal year.
Highlights of the quarter ended March 31, 2006 (compared to last year’s fourth quarter):
  •   Revenues grew 25% to $4.55 billion
 
  •   Earnings per diluted share from continuing operations grew 17% to $2.92
 
  •   Home closings increased 22% to 12,336
 
  •   Home Building operating earnings grew 15% to $601 million
 
  •   Unit backlog declined 6% on a sales (orders) decline of 11% in units
Highlights of fiscal year 2006 (compared to fiscal year 2005):
  •   Revenues grew 23% to $14.40 billion
 
  •   Earnings per diluted share from continuing operations grew 35% to $9.20
 
  •   Home Building operating earnings increased 38% to $1.91 billion
 
  •   Repurchased 9.25 million shares, or approximately 7% of shares outstanding
 
  •   Return on average stockholders’ equity exceeded 27%
     Tim Eller, Centex Corporation Chairman and CEO, said, “Our record results in fiscal year 2006 reflect the strength of our product mix and geographic diversity as well as the fundamental strength of the U.S. economy. Core demand for our housing products remains strong despite a current transition to more normal conditions in those markets that have exhibited above trend pricing growth. One of the ways we have positioned ourselves for this changing environment is by slowing the growth of our land position. While closings growth will moderate for fiscal 2007, we will continue to expand our local market shares and improve our operating efficiency with a particular focus on overhead management.”

 

 

Centex Corporation, Page 2 of 3
HOME BUILDING
     Fiscal 2006’s fourth quarter revenues were $3.98 billion, 29% higher than the same quarter last year. Operating earnings were $601 million for the quarter, 15% higher than the same quarter a year ago.
     The 15% increase in operating earnings was achieved on a 22% increase in closings to 12,336 homes in this year’s fourth quarter and a 10% increase in the average sales prices of homes delivered.
     The total home building operating margin, including land sales, was 15.1%, down 190 basis points versus last year’s fourth quarter, mainly due to significantly less earnings from land sales in this quarter. Additionally, the company wrote down the value of certain option deposits and pre-acquisition costs, and certain land parcels, to align the company’s land position to current conditions in markets such as Washington D.C., Sacramento, and San Diego. The net effect of these provisions reduced reported earnings in the quarter by approximately $0.14 per share.
     The housing operating margin increased 20 basis points to 15.2%, reflective of 20 basis points of SG&A leverage on housing revenues and a flat gross margin.
     Full year fiscal 2006 operating earnings reached a record $1.91 billion, 38% higher than fiscal 2005. Revenues of $12.27 billion for fiscal year 2006 were 31% higher than last year’s revenues. For fiscal 2006, Centex delivered 39,232 homes, up 18% over last year.
OTHER BUSINESSES
CTX Mortgage, Title and Insurance Group (CMTIG)
     Operating earnings from CMTIG totaled $21 million for the fourth quarter of fiscal 2006, equal to the same quarter a year ago. Total originations increased 6%, helped by a significant increase in originations from Centex’s home building operations. CMTIG provided loans to 77% of Centex Homes’ buyers during the fourth quarter, up four percentage points versus last year’s fourth quarter.
Construction Services
     Operating earnings from Construction Services were $14 million for the fourth quarter this year, resulting in an operating margin of 3.1%, up 130 basis points from last year’s fourth quarter. New contracts for the quarter were approximately $452 million, increasing the backlog of uncompleted construction contracts at March 31, 2006 to $2.96 billion, 48% more than a year ago.
ADDITIONAL DEVELOPMENTS
     As previously announced, Centex has entered into a definitive agreement to sell Centex Home Equity Company, LLC (CHEC), its sub-prime home equity mortgage lender. The sale is subject to certain conditions including regulatory approvals and is expected to close in approximately 90 days. Based on current information, Centex estimates that net after-tax cash available in connection with the sale, at closing, will be approximately $575 million. As a result of the proposed sale, CHEC’s financial results are now reported as a component of discontinued operations.
     In the fourth fiscal quarter, Centex repurchased 2,500,000 shares at an average price of $70.56 per share. There are 2,500,000 shares remaining in the current repurchase authorization.
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Centex Corporation, Page 3 of 3
OUTLOOK
     Taking into consideration its current backlog and the housing market conditions, as well as the classification of CHEC’s earnings into results from discontinued operations, Centex’s full year 2007 earnings guidance is now $8.50 to $10.00 per fully diluted share from continuing operations. Additionally, Centex issued guidance for its first fiscal quarter ending June 30, 2006 of $1.35 to $1.45 per fully diluted share from continuing operations.
     Centex’s senior management will conduct a conference call to discuss the fourth quarter fiscal year 2006 financial results at 10 a.m. Eastern Time (9 a.m. Central Time) on Thursday, April 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.
# # #
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 Quarterly Reports on Form 10-Q, which are on file with the SEC and may be obtained free of charge through the Web site maintained by the SEC at http://www.sec.gov. The factors discussed in these reports include, but are not limited to, changes in national or regional economic or business conditions, including employment levels and interest rates, competition, shortages or price changes in raw materials or labor, and other factors that could affect demand for our homes, mortgage loans or construction services or the profitability of our operations. With respect to a possible sale of CHEC, although Centex has entered into a definitive agreement, there can be no assurance that a sale of CHEC will be completed, or if completed, as to the terms or timing of the transaction. Centex’s earnings guidance assumes that share repurchases will be made during the fiscal year. If repurchases are not made as anticipated, our earnings per share will be affected and may be lower. All forward-looking statements made in this press release are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed in this press release will increase with the passage of time. Centex makes no commitment, and disclaims any duty, to update or revise any forward-looking statement to reflect future events or changes in Centex’s expectations.
NOTE ATTACHMENTS:
(1) Revenues and Earnings by Lines of Business
(2) Condensed Consolidated Balance Sheets
(3) Condensed Consolidated Cash Flows
(4) Supplemental Home Building Data
(5) Housing Activity by Geographic Area
(6) Housing Activity Dollar Values by Geographic Area
(7) Supplemental Financial Services Data
(8) Supplemental Financial Data
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Attachment 1
Centex Corporation and Subsidiaries
Revenues and Earnings by Lines of Business
(Dollars in thousands, except per share data)
                                                 
    Quarter Ended     Fiscal Year Ended  
    March 31,     March 31,  
    (unaudited)     (unaudited)  
    2006     2005 (C)     Change     2006     2005 (C)     Change  
Revenues
                                                
Home Building (A)
   $ 3,980,967     $ 3,089,617       29 %   $ 12,272,203     $ 9,359,741       31 %
Financial Services (B)
     118,498       106,110       12 %     462,223       421,653       10 %
Construction Services
     445,705       406,690       10 %     1,606,609       1,738,603       (8 %)
Other (Including Intersegment Eliminations)
     5,064       31,096       (84 %)     58,634       152,888       (62 %)
 
                                        
Total
   $ 4,550,234     $ 3,633,513       25 %   $ 14,399,669     $ 11,672,885       23 %
 
                                        
 
                                                
Operating Earnings
                                                
Home Building (A)
   $ 601,349     $ 524,889       15 %   $ 1,905,812     $ 1,378,818       38 %
Financial Services (B)
     20,922       21,224       (1 %)     84,465       95,972       (12 %)
Construction Services
     13,646       7,146       91 %     26,838       23,524       14 %
Other (Including Intersegment Eliminations)
     (1,194 )     (5,812 )     79 %     (9,400 )     5,566       (269 %)
 
                                        
Total Operating Earnings
     634,723       547,447       16 %     2,007,715       1,503,880       34 %
 
                                                
Corporate General Expenses
     (29,220 )     (21,136 )             (100,155 )     (82,877 )        
Interest Expense
     (3,362 )     (5,270 )             (12,067 )     (19,348 )        
 
                                        
 
                                                
Earnings from Continuing Operations Before Income Taxes
     602,141       521,041       16 %     1,895,493       1,401,655       35 %
Income Taxes
     (226,370 )     (186,966 )             (674,472 )     (502,113 )        
 
                                        
Earnings from Continuing Operations
     375,771       334,075       12 %     1,221,021       899,542       36 %
Earnings (Loss) from Discontinued Operations, net (A, B)
     15,998       35,673               68,292       111,822          
 
                                        
 
                                                
Net Earnings
   $ 391,769     $ 369,748       6 %   $ 1,289,313     $ 1,011,364       27 %
 
                                        
 
                                                
Earnings Per Share — Basic
                                                
Earnings per Share — Continuing Operations
   $ 3.04     $ 2.61       16 %   $ 9.62     $ 7.19       34 %
Earnings (Loss) per Share — Discontinued Operations
     0.13       0.28               0.54       0.89          
 
                                        
Earnings Per Share — Basic
   $ 3.17     $ 2.89       10 %   $ 10.16     $ 8.08       26 %
 
                                        
 
                                                
Earnings Per Share — Diluted
                                                
Earnings per Share — Continuing Operations
   $ 2.92     $ 2.49       17 %   $ 9.20     $ 6.79       35 %
Earnings (Loss) per Share — Discontinued Operations
     0.12       0.26               0.51       0.85          
 
                                        
Earnings Per Share — Diluted
   $ 3.04     $ 2.75       11 %   $ 9.71     $ 7.64       27 %
 
                                        
 
                                                
Average Shares Outstanding:
                                                
Basic
     123,622,796       127,739,654       (3 %)     126,870,887       125,226,596       1 %
Diluted
     128,732,705       134,248,349       (4 %)     132,749,797       132,397,961       — %
 
(A)   Home Building excludes the United Kingdom Home Building operations which was sold in September, 2005 and is reflected in discontinued operations.
 
(B)   Financial Services excludes the Centex Home Equity operation which is to be sold under current agreement and is reflected in discontinued operations.
 
(C)   Certain prior year items have been reclassified to conform to current period classifications.

 

 

Attachment 2
Centex Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Dollars in millions)
(unaudited)
                                                 
    Centex Corporation and Subsidiaries     Centex Corporation (A)     Financial Services  
    March 31,     March 31,     March 31,     March 31,     March 31,     March 31,  
    2006     2005     2006     2005     2006     2005  
Assets
                                                
Cash -
                                                
Unrestricted
   $ 47     $ 502     $ 37     $ 491     $ 10     $ 11  
Restricted
     135       88       71       53       64       35  
Receivables -
                                                
Residential Mortgage Loans Held for Sale
     2,130       1,775       —       —       2,130       1,775  
Other Receivables
     704       637       660       594       44       43  
Inventories -
                                                
Homebuilding
     8,828       6,439       8,828       6,439       —       —  
Land Held Under Option Agreements not Owned
     818       457       818       457       —       —  
Other
     12       33       6       27       6       6  
Investments
     310       164       965       736       —       —  
Property and Equipment, net
     183       141       161       117       22       24  
Goodwill
     219       217       207       205       12       12  
Deferred Charges and Other Assets
     469       379       430       333       39       46  
Assets of Discontinued Operations
     7,510       9,179       —       677       7,510       8,502  
 
                                    
 
   $ 21,365     $ 20,011     $ 12,183     $ 10,129     $ 9,837     $ 10,454  
 
                                    
 
                                                
Liabilities and Stockholders’ Equity
                                                
Accounts Payable and Accrued Liabilities
   $ 2,760     $ 2,056     $ 2,658     $ 1,950     $ 93     $ 61  
Debt
                                                
Non-Financial Services
     3,982       3,108       3,982       3,108       —       —  
Financial Services
     2,077       1,696       —       —       2,077       1,696  
Liabilities of Discontinued Operations
     7,002       8,412       —       334       7,002       8,078  
Minority Interests
     532       458       531       456       1       2  
Stockholders’ Equity
     5,012       4,281       5,012       4,281       664       617  
 
                                    
 
   $ 21,365     $ 20,011     $ 12,183     $ 10,129     $ 9,837     $ 10,454  
 
                                    
 
(A)   In the supplemental data presented above, “Centex Corporation” represents the consolidation of all subsidiaries other than those included in Financial Services. Transactions between Centex Corporation and Financial Services have been eliminated from the Centex Corporation and Subsidiaries balance sheets. We 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 (A)     Centex Corporation (B)     Financial Services (A)  
    For the Fiscal Year Ended March 31,     For the Fiscal Year Ended March 31,     For the Fiscal Year Ended March 31,  
    2006     2005     2006     2005     2006     2005  
Cash Flows — Operating Activities
                                                
Net Earnings
   $ 1,289     $ 1,011     $ 1,289     $ 1,011     $ 119     $ 126  
Adjustments -
                                                
Depreciation and Amortization
     63       58       48       40       15       18  
Other Noncash Adjustments
     46       175       (39 )     (61 )     22       159  
(Increase) Decrease in Loans Held for Sale
     (354 )     44       —       —       (354 )     44  
(Increase) Decrease in Inventories
     (2,449 )     (1,880 )     (2,449 )     (1,883 )     —       3  
Other Operating Activities
     471       223       466       387       41       (200 )
 
                                    
 
     (934 )     (369 )     (685 )     (506 )     (157 )     150  
 
                                    
Cash Flows — Investing Activities
                                                
Decrease (Increase) in Loans Held for Investment
     952       (1,515 )     —       —       952       (1,515 )
Other Investing Activities
     102       (98 )     94       (51 )     (11 )     (11 )
 
                                    
 
     1,054       (1,613 )     94       (51 )     941       (1,526 )
 
                                    
Cash Flows — Financing Activities
                                                
Increase in Short-Term Debt, net
     764       371       119       8       645       363  
(Repayment) Issuance of Long-Term Debt, net
     (728 )     1,873       629       817       (1,357 )     1,056  
Other Financing Activities
     (610 )     67       (610 )     67       (73 )     (49 )
 
                                    
 
     (574 )     2,311       138       892       (785 )     1,370  
 
                                    
 
                                                
Effect of Exchange Rate on Cash
     (1 )     (5 )     (1 )     (5 )     —       —  
 
                                    
 
                                                
Net Decrease in Cash and Cash Equivalents
     (455 )     324       (454 )     330       (1 )     (6 )
Cash and Cash Equivalents at Beginning of Period
     503       179       491       161       12       18  
 
                                    
Cash and Cash Equivalents at End of Period
   $ 48     $ 503     $ 37     $ 491     $ 11     $ 12  
 
                                    
 
(A)   Beginning and ending cash balances include approximately $1 million in cash from the discontinued operations of Financial Services’ Home Equity operations.
 
(B)   In the supplemental data presented above, “Centex Corporation” represents the consolidation of all subsidiaries other than those included in Financial Services. Transactions between Centex Corporation and Financial Services have been eliminated from the Centex Corporation and Subsidiaries cash flows. We 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
(Dollars in thousands, except per unit data)
(unaudited)
                                                                 
    Quarter Ended March 31,     Fiscal Year Ended March 31,  
    2006     2005     2006     2005  
HOME BUILDING
                                                                
Revenues — Housing
   $ 3,890,256       100.0 %   $ 2,909,274       100.0 %   $ 11,920,634       100.0 %   $ 9,007,148       100.0 %
Cost of Sales — Housing
     (2,782,087 )     (71.5 %)     (2,078,839 )     (71.5 %)     (8,458,995 )     (71.0 %)     (6,486,709 )     (72.0 %)
 
                                                
Gross Margin — Housing
     1,108,169       28.5 %     830,435       28.5 %     3,461,639       29.0 %     2,520,439       28.0 %
 
                                                
 
                                                                
Revenues — Land Sales & Other
     90,711               180,343               351,569               352,593          
Cost of Sales — Land Sales & Other
     (100,823 )             (107,306 )             (296,938 )             (261,394 )        
 
                                                        
Gross Margin — Land Sales & Other
     (10,112 )             73,037               54,631               91,199          
 
                                                        
Total Gross Margin
     1,098,057       27.6 %     903,472       29.2 %     3,516,270       28.7 %     2,611,638       27.9 %
 
                                                                
Selling, General & Administrative
     (515,432 )     (12.9 %)     (392,863 )     (12.7 %)     (1,696,456 )     (13.8 %)     (1,301,606 )     (13.9 %)
 
                                                                
Other Income
     18,724       0.4 %     14,280       0.5 %     85,998       0.6 %     68,786       0.7 %
 
                                                                
 
                                                
Operating Earnings
   $ 601,349       15.1 %   $ 524,889       17.0 %   $ 1,905,812       15.5 %   $ 1,378,818       14.7 %
 
                                                        
Units Closed
     12,336               10,126               39,232               33,387          
 
                                                                
Average Unit Sales Price
   $ 315,358             $ 287,307             $ 303,850             $ 269,780          
% Change
     9.8 %             17.1 %             12.6 %             11.3 %        
 
                                                                
Operating Earnings per Unit
   $ 48,747             $ 51,836             $ 48,578             $ 41,298          
% Change
     (6.0 %)             41.4 %             17.6 %             29.8 %        
 
                                                                
Average Neighborhoods
     646               613               626               589          
% Change
     5.4 %             10.1 %             6.3 %             5.6 %        
LOT POSITION
                         
    As of March 31,
    2006   2005   Change
Lot Owned and Controlled:
                        
 
                        
Lots Owned
     108,828       96,945       12 %
 
                        
Lots Controlled
     186,893       168,350       11 %
 
                        
 
                        
Total
     295,721       265,295       11 %
 
                        

 

 

Attachment 5
Centex Corporation and Subsidiaries
Supplemental Home Building Data
Housing Activity (Units) by Geographic Area
                                                 
    Closings
    Quarter Ended March 31,   Fiscal Year Ended March 31,
    2006   2005   Change   2006   2005   Change
Mid-Atlantic
     2,079       1,839       13 %     7,182       5,823       23 %
 
                                                
Southeast
     2,510       1,992       26 %     7,235       5,879       23 %
 
                                                
Midwest
     2,159       1,821       19 %     7,153       6,712       7 %
 
                                                
Southwest
     3,354       2,816       19 %     10,720       9,158       17 %
 
                                                
West Coast
     2,234       1,658       35 %     6,942       5,815       19 %
 
                                                
 
                                                
 
     12,336       10,126       22 %     39,232       33,387       18 %
 
                                                
                         
    Sales (Orders) Backlog
    As of March 31,
    2006   2005   Change
Mid-Atlantic
     3,073       3,461       (11 %)
 
                        
Southeast
     4,116       5,006       (18 %)
 
                        
Midwest
     2,755       3,273       (16 %)
 
                        
Southwest
     4,094       3,688       11 %
 
                        
West Coast
     3,349       3,161       6 %
 
                        
 
                        
 
     17,387       18,589       (6 %)
 
                        
                                                 
    Sales (Orders)
    Quarter Ended March 31,   Fiscal Year Ended March 31,
    2006   2005   Change   2006   2005   Change
Mid-Atlantic
     1,785       1,883       (5 %)     6,833       6,483       5 %
 
                                                
Southeast
     1,470       2,006       (27 %)     6,345       7,178       (12 %)
 
                                                
Midwest
     1,840       2,128       (14 %)     6,596       6,593       — %
 
                                                
Southwest
     2,765       3,363       (18 %)     11,126       9,977       12 %
 
                                                
West Coast
     2,068       1,834       13 %     7,130       6,331       13 %
 
                                                
 
                                                
 
     9,928       11,214       (11 %)     38,030       36,562       4 %
 
                                                

 

 

Attachment 6
Centex Corporation and Subsidiaries
Supplemental Home Building Data
Housing Activity (Values) by Geographic Area
                                                 
    Housing Revenues - Closings  
    (Dollars in thousands)  
    Quarter Ended March 31,     Fiscal Year Ended March 31,  
    2006     2005     Change     2006     2005     Change  
Mid-Atlantic
   $ 708,838     $ 564,217       26 %   $ 2,422,302     $ 1,700,818       42 %
 
                                                
Southeast
     752,802       532,750       41 %     2,089,115       1,506,468       39 %
 
                                                
Midwest
     485,262       397,463       22 %     1,583,002       1,431,825       11 %
 
                                                
Southwest
     748,355       513,053       46 %     2,119,540       1,557,119       36 %
 
                                                
West Coast
     1,194,999       901,791       33 %     3,706,675       2,810,918       32 %
 
                                        
 
                                                
 
   $ 3,890,256     $ 2,909,274       34 %   $ 11,920,634     $ 9,007,148       32 %
 
                                        
                         
    Sales (Orders) Backlog Value  
    (Dollars in thousands)  
    As of March 31,  
    2006     2005     Change  
Mid-Atlantic
   $ 1,044,086     $ 1,227,296       (15 %)
 
                        
Southeast
     1,350,484       1,458,037       (7 %)
 
                        
Midwest
     644,140       725,950       (11 %)
 
                        
Southwest
     968,250       804,248       20 %
 
                        
West Coast
     1,766,748       1,725,896       2 %
 
                    
 
                        
 
   $ 5,773,708     $ 5,941,427       (3 %)
 
                    

 

 

Attachment 7
Centex Corporation and Subsidiaries
Supplemental Financial Services Data
CTX Mortgage Company
                                                 
    Quarter Ended March 31,     Fiscal Year Ended March 31,  
    2006     2005     Change     2006     2005     Change  
Originations
                                                
Builder
     8,884       6,829       30 %     27,364       22,517       22 %
Retail
     8,291       9,416       (12 %)     43,319       44,816       (3 %)
 
                                        
 
                                                
Total
     17,175       16,245       6 %     70,683       67,333       5 %
 
                                        
 
                                                
Applications
                                                
Builder
     7,393       7,301       1 %     27,765       24,631       13 %
Retail
     8,546       10,421       (18 %)     38,521       39,848       (3 %)
 
                                        
 
                                                
Total
     15,939       17,722       (10 %)     66,286       64,479       3 %
 
                                        
 
                                                
Loan Volume (in billions)
   $ 3.99     $ 3.38       18 %   $ 15.83     $ 13.04       21 %
 
                                        
 
                                                
Average Loan Size
   $ 232,300     $ 208,200       12 %   $ 223,900     $ 193,600       16 %
 
                                        
 
                                                
Operating Profit per Loan
   $ 1,218     $ 1,306       (7 %)   $ 1,195     $ 1,425       (16 %)
 
                                        

 

 

Attachment 8
Centex Corporation and Subsidiaries
Supplemental Financial Data — Debt-to-Capitalization Ratio
(Dollars in millions)
                         
    As of March 31, 2006     As of March 31, 2005     As of March 31, 2004  
Debt/Capitalization *
                        
Debt
   $ 3,982     $ 3,108     $ 2,318  
Minority Interests
     531       456       335  
Less Minority Interests on Lot Options
     (492 )     (416 )     (333 )
Stockholders’ Equity
     5,012       4,281       3,050  
 
                  
Capitalization
     9,033       7,429       5,370  
Less Unrestricted Cash
     (37 )     (491 )     (160 )
 
                  
Net Capitalization
   $ 8,996     $ 6,938     $ 5,210  
 
                  
 
                        
Debt-to-Capitalization Ratio
     44.1 %     41.8 %     43.2 %
 
                  
Net Debt-to-Capitalization Ratio
     43.9 %     37.7 %     41.4 %
 
                  
Consolidated Debt/Capitalization **
                        
Debt
   $ 6,059     $ 4,804     $ 3,995  
Minority Interests
     532       458       336  
Less Minority Interests on Lot Options
     (492 )     (416 )     (333 )
Stockholders’ Equity
     5,012       4,281       3,050  
 
                  
Capitalization
     11,111       9,127       7,048  
Less Unrestricted Cash
     (47 )     (502 )     (171 )
 
                  
Net Capitalization
   $ 11,064     $ 8,625     $ 6,877  
 
                  
 
                        
Consolidated Debt-to-Capitalization Ratio
     54.5 %     52.6 %     56.7 %
 
                  
Consolidated Net Debt-to-Capitalization Ratio
     54.3 %     49.9 %     55.6 %
 
                  
 
*   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.