EX-99.1 2 d46301exv99w1.htm ATTACHEMENTS TO PRESS RELEASE exv99w1
 

Exhibit 99.1
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)  
    2007     2006 (B)     Change     2007     2006 (B)     Change  
Revenues
                                                
Home Building
   $ 3,519,692     $ 3,980,967       (12 %)   $ 11,414,827     $ 12,272,203       (7 %)
Financial Services (A)
     117,105       118,498       (1 %)     468,001       462,223       1 %
Other
     32,066       30,664       5 %     131,739       117,438       12 %
 
                                        
Total
   $ 3,668,863     $ 4,130,129       (11 %)   $ 12,014,567     $ 12,851,864       (7 %)
 
                                        
 
                                                
Operating Earnings
                                                
Home Building (C)
   $ (16,843 )   $ 601,349       (103 %)   $ 96,821     $ 1,905,812       (95 %)
Financial Services (A)
     18,783       20,922       (10 %)     84,530       84,465       — %
Other
     267       1,029       (74 %)     (1,525 )     (5,779 )     74 %
 
                                        
Total Operating Earnings
     2,207       623,300       (100 %)     179,826       1,984,498       (91 %)
 
                                                
Corporate General Expenses (C)
     (9,498 )     (29,220 )             (77,053 )     (100,155 )        
Interest Expense
     —       (3,362 )             —       (12,067 )        
 
                                        
 
                                                
Earnings (Loss) from Continuing Operations Before Income Taxes
     (7,291 )     590,718       (101 %)     102,773       1,872,276       (95 %)
 
                                                
Income Taxes
     (14,994 )     (221,758 )             (114,553 )     (665,187 )        
 
                                        
 
                                                
Earnings (Loss) from Continuing Operations
     (22,285 )     368,960       (106 %)     (11,780 )     1,207,089       (101 %)
 
                                                
Earnings from Discontinued Operations, net (A)
     221,140       22,809               280,146       82,224          
 
                                        
 
                                                
Net Earnings
   $ 198,855     $ 391,769       (49 %)   $ 268,366     $ 1,289,313       (79 %)
 
                                        
 
                                                
Earnings Per Share — Basic
                                                
Earnings (Loss) per Share — Continuing Operations
   $ (0.18 )   $ 2.99       (106 %)   $ (0.10 )   $ 9.51       (101 %)
Earnings per Share — Discontinued Operations
     1.83       0.18               2.33       0.65          
 
                                        
Earnings Per Share — Basic
   $ 1.65     $ 3.17       (48 %)   $ 2.23     $ 10.16       (78 %)
 
                                        
 
                                                
Earnings Per Share — Diluted
                                                
Earnings (Loss) per Share — Continuing Operations
   $ (0.18 )   $ 2.86       (106 %)   $ (0.10 )   $ 9.09       (101 %)
Earnings per Share — Discontinued Operations
     1.83       0.18               2.33       0.62          
 
                                        
Earnings Per Share — Diluted
   $ 1.65     $ 3.04       (46 %)   $ 2.23     $ 9.71       (77 %)
 
                                        
 
                                                
Average Shares Outstanding:
                                                
Basic
     120,627,559       123,622,796       (2 %)     120,537,235       126,870,887       (5 %)
Diluted
     120,627,559       128,732,705       (6 %)     120,537,235       132,749,797       (9 %)
 
(A)   Financial Services excludes the Centex Home Equity operations which were sold in July 2006 and are reflected in discontinued operations. In addition, Construction Services, which was sold in March 2007, is also reflected in discontinued operations.
 
(B)   Certain prior year items have been reclassified to conform to current period classifications.
 
(C)   Centex is reorganizing its reporting segments which will be disclosed in its fiscal 2007 Form 10-K. As part of the reorganization of reporting segments, a portion of its Home Building SG&A costs will be reported as Corporate General Expenses, which will more appropriately reflect the alignment of its operations.

 

 

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,  
    2007     2006     2007     2006     2007     2006  
Assets
                                                
Cash -
                                                
Unrestricted
   $ 883     $ 43     $ 871     $ 33     $ 12     $ 10  
Restricted
     146       133       57       69       89       64  
Receivables -
                                                
Mortgage Loans Receivable
     1,694       2,130       —       —       1,694       2,130  
Other Receivables
     228       326       176       283       52       43  
Inventories -
                                                
Homebuilding
     8,654       8,832       8,654       8,832       —       —  
Land Held Under Option Agreements not Owned
     282       818       282       818       —       —  
Other
     15       12       6       5       9       7  
Investments
     282       308       419       963       —       —  
Property and Equipment, net
     136       178       119       156       17       22  
Goodwill
     219       218       210       206       9       12  
Deferred Charges and Other Assets
     667       468       629       429       38       39  
Assets of Discontinued Operations (B)
     —       7,899       —       389       —       7,510  
 
                                    
 
   $ 13,206     $ 21,365     $ 11,423     $ 12,183     $ 1,920     $ 9,837  
 
                                    
 
                                                
Liabilities and Stockholders’ Equity
                                                
Accounts Payable and Accrued Liabilities
   $ 2,350     $ 2,182     $ 2,231     $ 2,080     $ 95     $ 93  
Debt -
                                                
Non-Financial Services
     3,904       3,982       3,904       3,982       —       —  
Financial Services
     1,663       2,077       —       —       1,663       2,077  
Liabilities of Discontinued Operations (B)
     —       7,581       —       579       —       7,002  
Minority Interests
     177       531       176       530       1       1  
Stockholders’ Equity
     5,112       5,012       5,112       5,012       161       664  
 
                                    
 
   $ 13,206     $ 21,365     $ 11,423     $ 12,183     $ 1,920     $ 9,837  
 
                                    
 
(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 present the consolidating information shown above and believe that it is useful to investors because it enables them to compare our homebuilding operations more readily to the businesses of other homebuilding companies that do not have significant financial services operations. We also believe that separate disclosure of the consolidating information is appropriate 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.
 
(B)   The assets and liabilities of discontinued operations at March 31, 2006 include the Centex Home Equity operations, sold in July 2006 and the Construction Services operations, sold in March 2007.

 

 

Attachment 3
Centex Corporation and Subsidiaries
Condensed Consolidated Cash Flows
(Dollars in millions)
(unaudited)
                                                 
    Centex Corporation and Subsidiaries (A)     Centex Corporation (A)(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,  
    2007     2006     2007     2006     2007     2006  
Cash Flows — Operating Activities
                                                
Net Earnings
   $ 268     $ 1,289     $ 268     $ 1,289     $ 102     $ 119  
Adjustments -
                                                
Depreciation and Amortization
     60       63       52       48       8       15  
Other Noncash Adjustments
     285       82       812       14       (32 )     22  
Decrease (Increase) in Loans Held for Sale
     519       (200 )     —       —       519       (200 )
Increase in Inventories
     (481 )     (2,484 )     (479 )     (2,484 )     (2 )     —  
Other Operating Activities
     298       487       277       466       (16 )     57  
 
                                    
 
     949       (763 )     930       (667 )     579       13  
 
                                    
 
                                                
Cash Flows — Investing Activities
                                                
(Increase) Decrease in Loans Held for Investment
     (292 )     952       —       —       (292 )     952  
Other Investing Activities
     381       (52 )     46       77       370       (165 )
 
                                    
 
     89       900       46       77       78       787  
 
                                    
 
                                                
Cash Flows — Financing Activities
                                                
(Decrease) Increase in Short-Term Debt, net
     (347 )     765       (125 )     119       (222 )     646  
Issuance of Long-Term Debt, net
     422       (729 )     207       629       215       (1,358 )
Other Financing Activities
     (278 )     (626 )     (224 )     (610 )     (649 )     (89 )
 
                                    
 
     (203 )     (590 )     (142 )     138       (656 )     (801 )
 
                                    
 
                                                
Effect of Exchange Rate on Cash
     —       (1 )     —       (1 )     —       —  
 
                                    
 
                                                
Net Increase (Decrease) in Cash and Cash Equivalents
     835       (454 )     834       (453 )     1       (1 )
Cash and Cash Equivalents at Beginning of Period
     48       502       37       490       11       12  
 
                                    
Cash and Cash Equivalents at End of Period
   $ 883     $ 48     $ 871     $ 37     $ 12     $ 11  
 
                                    
 
(A)   Beginning cash balances include cash from the discontinued operations of Centex Construction and Financial Services’ Home Equity operations — approximately $5 million as of March 31, 2006 and $6 million at March 31, 2005.
 
(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 present the consolidating information shown above and believe that it is useful to investors because it enables them to compare our homebuilding operations more readily to the businesses of other homebuilding companies that do not have significant financial services operations. We also believe that separate disclosure of the consolidating information is appropriate 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,  
    2007     2006     2007     2006  
HOME BUILDING
                                                                
 
                                                                
Revenues — Housing
   $ 3,334,989       100.0 %   $ 3,890,256       100.0 %   $ 11,014,975       100.0 %   $ 11,920,634       100.0 %
Cost of Sales — Housing
     (2,745,162 )     (82.3 %)     (2,782,087 )     (71.5 %)     (8,599,465 )     (78.1 %)     (8,458,995 )     (71.0 %)
 
                                                
Gross Margin — Housing
     589,827       17.7 %     1,108,169       28.5 %     2,415,510       21.9 %     3,461,639       29.0 %
 
                                                
 
                                                                
Revenues — Land Sales & Other
     184,703               90,711               399,852               351,569          
Cost of Sales — Land Sales & Other
     (381,850 )             (100,823 )             (1,044,455 )             (296,938 )        
 
                                                        
Gross Margin — Land Sales & Other
     (197,147 )             (10,112 )             (644,603 )             54,631          
 
                                                        
Total Gross Margin
     392,680       11.2 %     1,098,057       27.6 %     1,770,907       15.5 %     3,516,270       28.7 %
Selling, General & Administrative
     (403,446 )     (11.5 %)     (515,432 )     (12.9 %)     (1,631,533 )     (14.3 %)     (1,696,456 )     (13.8 %)
Other Income (Expense) (A)
     (6,077 )     (0.2 %)     18,724       0.4 %     (42,553 )     (0.4 %)     85,998       0.6 %
 
                                                
 
                                                                
Operating Earnings (Loss)
   $ (16,843 )     (0.5 %)   $ 601,349       15.1 %   $ 96,821       0.8 %   $ 1,905,812       15.5 %
 
                                                        
 
                                                                
Units Closed
     10,582               12,336               35,785               39,232          
Average Unit Sales Price
   $ 315,157             $ 315,358             $ 307,810             $ 303,850          
% Change
     (0.1 %)             9.8 %             1.3 %             12.6 %        
 
                                                                
Average Neighborhoods
     694               646               687               626          
% Change
     7.4 %             5.4 %             9.7 %             6.3 %        
 
(A)   Other Income (Expense) includes earnings (loss) from unconsolidated entities.
LOT POSITION
                         
    As of March 31,    
    2007   2006   Change
Lots Owned and Controlled:
                        
Lots Owned
     98,311       108,828       (10 %)
Lots Controlled
     61,709       186,893       (67 %)
 
                        
Total
     160,020       295,721       (46 %)
 
                        

 

 

Attachment 5
Centex Corporation and Subsidiaries
Supplemental Home Building Data
Housing Activity (Units) by Geographic Area
(Unaudited)
                                                 
    Closings  
    Quarter Ended March 31,     Fiscal Year Ended March 31,  
    2007     2006     Change     2007     2006     Change  
Mid-Atlantic
     1,738       2,079       (16 %)     6,720       7,182       (6 %)
Southeast
     1,875       2,510       (25 %)     5,883       7,235       (19 %)
Midwest
     1,370       2,159       (37 %)     5,587       7,153       (22 %)
Southwest
     3,176       3,354       (5 %)     10,401       10,720       (3 %)
West Coast
     2,423       2,234       8 %     7,194       6,942       4 %
 
                                        
 
     10,582       12,336       (14 %)     35,785       39,232       (9 %)
 
                                        
                         
    Sales (Orders) Backlog  
    As of March 31,  
    2007     2006     Change  
Mid-Atlantic
     1,848       3,073       (40 %)
Southeast
     1,672       4,116       (59 %)
Midwest
     1,938       2,755       (30 %)
Southwest
     3,125       4,094       (24 %)
West Coast
     2,068       3,349       (38 %)
 
                    
 
     10,651       17,387       (39 %)
 
                    
                                                 
    Sales (Orders)  
    Quarter Ended March 31,     Fiscal Year Ended March 31,  
    2007     2006     Change     2007     2006     Change  
Mid-Atlantic
     1,520       1,785       (15 %)     5,495       6,833       (20 %)
Southeast
     986       1,470       (33 %)     3,439       6,345       (46 %)
Midwest
     1,256       1,840       (32 %)     4,770       6,596       (28 %)
Southwest
     2,513       2,765       (9 %)     9,432       11,126       (15 %)
West Coast
     1,557       2,068       (25 %)     5,913       7,130       (17 %)
 
                                        
 
     7,832       9,928       (21 %)     29,049       38,030       (24 %)
 
                                        

 

 

Attachment 6
Centex Corporation and Subsidiaries
Supplemental Home Building Data
Housing Activity (Values) by Geographic Area
(Unaudited)
                                                 
    Housing Revenues - Closings  
    (Dollars in thousands)  
    Quarter Ended March 31,     Fiscal Year Ended March 31,  
    2007     2006     Change     2007     2006     Change  
Mid-Atlantic
   $ 548,167     $ 708,838       (23 %)   $ 2,179,199     $ 2,422,302       (10 %)
Southeast
     594,771       752,802       (21 %)     1,782,449       2,089,115       (15 %)
Midwest
     347,750       485,262       (28 %)     1,304,583       1,583,002       (18 %)
Southwest
     652,193       748,355       (13 %)     2,158,665       2,119,540       2 %
West Coast
     1,192,108       1,194,999       — %     3,590,079       3,706,675       (3 %)
 
                                        
 
   $ 3,334,989     $ 3,890,256       (14 %)   $ 11,014,975     $ 11,920,634       (8 %)
 
                                        
                         
    Sales (Orders) Backlog Value  
    (Dollars in thousands)  
    As of March 31,  
    2007     2006     Change  
Mid-Atlantic
   $ 611,057     $ 1,044,086       (41 %)
Southeast
     517,343       1,350,484       (62 %)
Midwest
     422,313       644,140       (34 %)
Southwest
     661,405       968,250       (32 %)
West Coast
     963,841       1,766,748       (45 %)
 
                    
 
   $ 3,175,959     $ 5,773,708       (45 %)
 
                    

 

 

Attachment 7
Centex Corporation and Subsidiaries
Supplemental Financial Services Data
(Unaudited)
CTX Mortgage Company
                                                 
    Quarter Ended March 31,     Fiscal Year Ended March 31,  
    2007     2006     Change     2007     2006     Change  
Originations
                                                
Builder
     8,254       8,884       (7 %)     27,141       27,364       (1 %)
Retail
     6,770       8,291       (18 %)     30,638       43,319       (29 %)
 
                                        
Total
     15,024       17,175       (13 %)     57,779       70,683       (18 %)
 
                                        
Loan Volume (in billions)
   $ 3.69     $ 3.99       (8 %)   $ 13.83     $ 15.83       (13 %)
 
                                        
Average Loan Size
   $ 245,500     $ 232,300       6 %   $ 239,300     $ 223,900       7 %
 
                                        
Operating Profit per Loan
   $ 1,250     $ 1,218       3 %   $ 1,463       1,195       22 %
 
                                        

 

 

Attachment 8
Centex Corporation and Subsidiaries
Supplemental Financial Data — Debt-to-Capitalization Ratio
(Dollars in millions)
(Unaudited)
                         
    As of March 31, 2007     As of March 31, 2006     As of March 31, 2005  
Consolidated Debt/Capitalization (A)
                        
Debt
   $ 5,567     $ 6,059     $ 4,804  
Minority Interests
     177       531       457  
Less Minority Interests on Lot Options (C)
     (153 )     (492 )     (416 )
Stockholders’ Equity
     5,112       5,012       4,281  
 
                  
Capitalization
     10,703       11,110       9,126  
Less Unrestricted Cash
     (883 )     (43 )     (496 )
 
                  
Net Capitalization
   $ 9,820     $ 11,067     $ 8,630  
 
                  
 
                        
Consolidated Debt-to-Capitalization Ratio
     52.0 %     54.5 %     52.6 %
 
                  
Consolidated Net Debt-to-Capitalization Ratio (D)
     47.7 %     54.4 %     49.9 %
 
                  
 
                        
Debt/Capitalization, Excluding Financial Services (B)
                        
Debt
   $ 3,904     $ 3,982     $ 3,108  
Minority Interests
     176       530       456  
Less Minority Interests on Lot Options (C)
     (153 )     (492 )     (416 )
Stockholders’ Equity
     5,112       5,012       4,281  
 
                  
Capitalization
     9,039       9,032       7,429  
Less Unrestricted Cash
     (871 )     (33 )     (485 )
 
                  
Net Capitalization
   $ 8,168     $ 8,999     $ 6,944  
 
                  
 
                        
Debt-to-Capitalization Ratio
     43.2 %     44.1 %     41.8 %
 
                  
Net Debt-to-Capitalization Ratio (D)
     37.1 %     43.9 %     37.8 %
 
                  
 
(A)   Consolidated capitalization includes debt, minority interest (excluding lot options), and stockholders’ equity, including Financial Services.
 
(B)   Capitalization includes debt, minority interest (excluding lot options), and stockholders’ equity. Capitalization presented above reflects Financial Services on an equity basis and does not includ debt or minority interests attributable to Financial Services.
 
(C)   Pursuant to the provisions of Financial Accounting Standards Board (“FASB”) Interpretation No. 46, “Consolidation of Variable Interest Entities,” as revised (“FIN 46”), the Company consolidates certain lot option agreements and records the deposit and remaining purchase price related to these options as land held under option agreements not owned with a corresponding increase in minority interests. These minority interests are excluded from the debt-to-capitalization ratio as the Company is not obligated to purchase the properties and pay these amounts.
 
(D)   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. We believe this ratio reflects the debt/capitalization structure in a more inclusive manner as unrestricted cash could be applied to reduce debt at quarter end. See Attachment 2 for more information.
Debt-to-capitalization is a common financial ratio used in the homebuilding industry to evaluate debt capacity and leverage.

 

 

Attachment 9
Centex Corporation and Subsidiaries
Reconciliation of Housing/Home Building Operating Earnings
(Dollars in thousands)
(unaudited)
                                                                 
    Quarter Ended March 31,     Fiscal Year Ended March 31,  
    2007     2006     2007     2006  
HOME BUILDING
                                                                
Revenues — Housing
   $ 3,334,989       100.0 %   $ 3,890,256       100.0 %   $ 11,014,975       100.0 %   $ 11,920,634       100.0 %
Cost of Sales — Housing
     (2,745,162 )     (82.3 %)     (2,782,087 )     (71.5 %)     (8,599,465 )     (78.1 %)     (8,458,995 )     (71.0 %)
 
                                                
Gross Margin — Housing
     589,827       17.7 %     1,108,169       28.5 %     2,415,510       21.9 %     3,461,639       29.0 %
 
                                                                
Selling, General & Administrative
     (403,446 )     (12.1 %)     (515,432 )     (13.3 %)     (1,631,533 )     (14.8 %)     (1,696,456 )     (14.2 %)
 
                                                
 
                                                                
Housing Operating Earnings (A)
     186,381       5.6 %     592,737       15.2 %     783,977       7.1 %     1,765,183       14.8 %
 
                                                                
Revenues — Land Sales & Other
     184,703               90,711               399,852               351,569          
Cost of Sales — Land Sales & Other
     (381,850 )             (100,823 )             (1,044,455 )             (296,938 )        
 
                                                        
Gross Margin — Land Sales & Other
     (197,147 )             (10,112 )             (644,603 )             54,631          
 
                                                                
Other Income (Expense)
     (6,077 )             18,724               (42,553 )             85,998          
 
                                                        
 
                                                                
Operating Earnings (Loss)
   $ (16,843 )     (0.5 %)   $ 601,349       15.1 %   $ 96,821       0.8 %   $ 1,905,812       15.5 %
 
                                                        
 
(A)   Housing Operating Earnings is defined as housing revenues less housing cost of sales less selling, general & administrative expenses. Housing Operating Margin is defined as housing operating earnings divided by total housing revenues.