EX-99.1 2 d50641exv99w1.htm PRESS RELEASE exv99w1
 

Exhibit 99.1
     
 
   www.centex.com
 
   P.O. Box 199000
 
   Dallas, Texas 75219-9000
(CENTEX LOGO)
  
 
 
   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:
Matthew G. Moyer, Vice President—Investor Relations
Eric Bruner, Director—Public Relations
http://www.centex.com
CENTEX REPORTS SECOND QUARTER RESULTS
DALLAS, Oct. 23, 2007 — Centex Corporation (NYSE: CTX) today reported financial results for its fiscal second quarter ended Sept. 30, 2007.
Highlights of the quarter ended Sept. 30, 2007 (compared to last year’s second quarter):
  •   Loss from continuing operations was $5.26 per diluted share
 
  •   Sales (orders) decreased 13% to 5,953
 
  •   Reduced homebuilding SG&A expenses by 21% or $80 million
 
  •   Reduced inventory of unsold homes by 28% to 4,708
 
  •   Homebuilding cancellation rate decreased 200 bps to 35.4%
     “Market conditions were extremely challenging during the quarter, reflecting the serious disruptions in the credit and mortgage markets that occurred during that period,” said Tim Eller, Centex Corporation chairman and CEO. “In response, we meaningfully reduced prices in order to improve affordability for our home buyers. These actions were consistent with our continued focus on selling homes and generating cash as we structure for profitability.”
CORPORATE RESULTS
     Fiscal 2008’s second quarter revenues were $2.22 billion, 21% lower than the same quarter last year. The loss from continuing operations for the second quarter was $644 million, or a loss of $5.26 per diluted share, down from earnings of $80 million, or $0.65 per diluted share, in the previous year’s fiscal second quarter.
HOME BUILDING
     Fiscal 2008’s second quarter revenues were $2.11 billion, 21% lower than the same quarter last year mainly as a result of a 14% decrease in closings to 7,350 homes. Home building reported an operating loss of $953 million for the quarter, after $983 million, or $4.97 per diluted share, in impairments and other land charges. Housing operating earnings (housing revenues less housing cost of sales and SG&A) were $26 million, down from earnings of $259 million in the previous year. The decrease is a result of lower unit volume, an 8% decrease in the unit average sales price and higher sales incentives.

 

 

Centex Corporation, Page 2 of 3
     For the current six months, revenues were $3.91 billion, 26% lower than the same period last year. The reported homebuilding operating loss was $1.12 billion for the six-month period this year versus earnings of $461 million in the same period last year.
FINANCIAL SERVICES
     Financial Services reported an operating loss of $54 million this quarter, down from earnings of $26 million in the second quarter of fiscal 2007, due principally to increased reserves for potential future losses on its mortgage loan originations. CTX Mortgage originated loans for 80% of Centex Homes’ buyers during the second quarter, equal to last year’s second quarter.
     The operating loss was $39 million for the six-month period this year, down from earnings of $49 million in the same period last year. Centex’s Financial Services operations provide Centex home buyers with a streamlined home-closing and settlement process.
NON-GAAP FINANCIAL MEASURES
     Explanations of non-GAAP financial measures used in this press release and the accompanying attachments, and reconciliations of the non-GAAP financial measures to the comparable GAAP financial measures, are given in the applicable attachments.
     Centex’s senior management will conduct a conference call to discuss the second quarter fiscal year 2008 financial results at 10 a.m. EDT (9 a.m. CDT) on Wednesday, Oct. 24. 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, 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, 2007 (including under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), as well as recent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, 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, the effects of the current downturn in the homebuilding industry; changes in national or regional economic or business conditions, including employment levels and interest rates; competition; customer cancellations; shortages or price changes in raw materials or labor; the effects of recent disruptions in the mortgage finance industry, including tightening of credit and reduction in liquidity; the availability of adequate sources of financing; and other factors that could affect demand for our homes or mortgage loans, the profitability of our operations or our access to financing. 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.
-MORE-

 

 

Centex Corporation, Page 3 of 3
NOTE ATTACHMENTS:
(1) Revenues and Earnings by Lines of Business
(2) Consolidated Balance Sheet
(3) Home Building Revenues and Earnings
(4) Supplemental Home Building Data
(5) Supplemental Home Building Segment Data
(6) Supplemental Financial Services Data
(7) Supplemental Financial Data
(8) Reconciliation of Housing/Home Building Operating Earnings
-MORE-

 

 

Attachment 1
Centex Corporation and Subsidiaries
Revenues and Earnings by Lines of Business
(Dollars in thousands, except per share data)
                                                 
    Quarter Ended     Six Months Ended  
    September 30,     September 30,  
    (unaudited)     (unaudited)  
    2007     2006 (C)     Change     2007     2006 (C)     Change  
Revenues
                                                
Home Building (A)
   $ 2,105,484     $ 2,658,047       (21 %)   $ 3,909,304     $ 5,307,884       (26 %)
Financial Services
     80,700       120,578       (33 %)     178,666       243,319       (27 %)
Other
     34,744       36,963       (6 %)     69,447       68,285       2 %
 
                                        
Total
   $ 2,220,928     $ 2,815,588       (21 %)   $ 4,157,417     $ 5,619,488       (26 %)
 
                                        
 
Operating Earnings (Loss)
                                                
Home Building (A)
   $ (952,693 )   $ 148,735             $ (1,124,472 )   $ 460,648          
Financial Services
     (54,082 )     26,164               (39,113 )     49,251          
Other
     19,622       1,268               25,756       (499 )        
 
                                        
Total Operating Earnings (Loss)
     (987,153 )     176,167               (1,137,829 )     509,400          
 
Corporate General and Administrative Expenses (B)
     (34,540 )     (44,998 )             (79,521 )     (99,768 )        
 
                                        
 
Earnings (Loss) from Continuing Operations Before Income Taxes
     (1,021,693 )     131,169               (1,217,350 )     409,632          
 
Income Tax (Provision) Benefit
     377,860       (50,747 )             442,182       (156,782 )        
 
                                        
 
Earnings (Loss) from Continuing Operations
     (643,833 )     80,422               (775,168 )     252,850          
 
Earnings from Discontinued Operations, net
     —       56,978               3,376       44,807          
 
                                        
 
Net Earnings (Loss)
   $ (643,833 )   $ 137,400             $ (771,792 )   $ 297,657          
 
                                        
 
 
                                                
Earnings (Loss) Per Share — Basic
                                                
Continuing Operations
   $ (5.26 )   $ 0.67             $ (6.36 )   $ 2.09          
Discontinued Operations
     —       0.48               0.03       0.37          
 
                                        
Earnings (Loss) Per Share — Basic
   $ (5.26 )   $ 1.15             $ (6.33 )   $ 2.46          
 
                                        
 
                                                
Earnings (Loss) Per Share — Diluted
                                                
Continuing Operations
   $ (5.26 )   $ 0.65             $ (6.36 )   $ 2.02          
Discontinued Operations
     —       0.46               0.03       0.36          
 
                                        
Earnings (Loss) Per Share — Diluted
   $ (5.26 )   $ 1.11             $ (6.33 )   $ 2.38          
 
                                        
 
                                                
Average Shares Outstanding:
                                                
Basic
     122,301,587       119,634,303               121,888,041       120,795,315          
Diluted
     122,301,587       123,504,535               121,888,041       124,862,624          
 
(A)   See Attachment 3 for detailed home building segment revenues and earnings.
 
(B)   In connection with the change in the Company’s reporting segments at March 31, 2007, home building corporate general and administrative expenses have been reclassified to Corporate General and Administrative Expenses consistent with the structure of the internal organization. Prior periods have been restated accordingly.
 
(C)   Certain prior year items have been reclassified to conform to current period classifications.

 

 

Attachment 2
Centex Corporation and Subsidiaries
Condensed Consolidated Balance Sheet
(Dollars in millions)
(unaudited)
                 
    September 30,     March 31,  
    2007     2007  
Assets
                
Cash -
                
Unrestricted
   $ 100     $ 883  
Restricted
     121       146  
Receivables -
                
Residential Mortgage Loans Held for Sale
     935       1,688  
Other Receivables
     349       228  
Inventories -
                
Homebuilding
     7,596       8,633  
Land Held Under Option Agreements not Owned
     140       282  
Other
     31       36  
Investments
     269       282  
Property and Equipment, net
     103       136  
Goodwill
     160       219  
Deferred Charges and Other Assets
     1,166       667  
 
            
 
   $ 10,970     $ 13,200  
 
            
 
                
Liabilities and Stockholders’ Equity
                
Accounts Payable and Accrued Liabilities
   $ 2,250     $ 2,344  
Debt -
                
Non-Financial Services
     3,659       3,904  
Financial Services
     801       1,663  
Minority Interests
     96       177  
Stockholders’ Equity (A)
     4,164       5,112  
 
            
 
   $ 10,970     $ 13,200  
 
            
 
(A)   Effective April 1, 2007, the Company adopted Financial Accounting Standards FIN 48, “Accounting for Uncertainty in Income Taxes.” The change in accounting for income taxes reduced retained earnings by $208 and stockholders’ equity by $213.

 

 

Attachment 3
Centex Corporation and Subsidiaries
Home Building Revenues and Earnings
(Dollars in thousands)
                                                 
    Quarter Ended     Six Months Ended  
    September 30,     September 30,  
    (unaudited)     (unaudited)  
    2007     2006     Change     2007     2006     Change  
Home Building Revenues
                                                
East
   $ 488,230     $ 572,540       (15 %)   $ 849,006     $ 1,116,963       (24 %)
Southeast
     260,122       382,309       (32 %)     473,979       780,091       (39 %)
Central
     221,939       283,528       (22 %)     407,008       573,442       (29 %)
Texas
     256,306       267,697       (4 %)     491,039       512,053       (4 %)
Northwest
     395,851       536,704       (26 %)     791,376       1,041,583       (24 %)
Southwest
     426,290       549,008       (22 %)     797,494       1,141,041       (30 %)
Other Home Building
     56,746       66,261       (14 %)     99,402       142,711       (30 %)
 
                                        
Total Home Building
   $ 2,105,484     $ 2,658,047       (21 %)   $ 3,909,304     $ 5,307,884       (26 %)
 
                                        
 
                                                
Home Building Operating Earnings (Loss) (A)
                                                
East
   $ 17,010     $ 75,556             $ 35,062     $ 158,535          
Southeast
     (153,088 )     23,120               (166,105 )     83,722          
Central
     (52,101 )     188               (58,468 )     9,821          
Texas
     19,708       23,548               33,844       43,895          
Northwest
     (195,767 )     77,841               (227,848 )     151,131          
Southwest
     (480,143 )     (56,206 )             (595,743 )     (8,036 )        
Other Home Building
     (108,312 )     4,688               (145,214 )     21,580          
 
                                        
Total Home Building
   $ (952,693 )   $ 148,735             $ (1,124,472 )   $ 460,648          
 
                                        
 
(A)   Operating Earnings above exclude home building corporate general and administrative expenses which have been reclassified to Corporate General and Administrative Expenses in connection with the change in the Company’s reporting segments at March 31, 2007. Further information regarding the home building reporting segments shown above may be found in Part 1, Item 1 (Business) of Centex’s Form 10-K for the fiscal year ended March 31, 2007. Prior periods have been restated accordingly.

 

 

Attachment 4
Centex Corporation and Subsidiaries
Supplemental Home Building Data
(Dollars in thousands, except per unit data)
(unaudited)
MARGIN DATA
                                                                 
    Quarter Ended September 30,     Six Months Ended September 30,  
    2007     2006     2007     2006  
Revenues — Housing
   $ 2,063,999       100.0 %   $ 2,601,839       100.0 %   $ 3,838,737       100.0 %   $ 5,163,897       100.0 %
Cost of Sales — Housing
     (1,741,203 )     (84.4 %)     (1,967,634 )     (75.6 %)     (3,222,554 )     (83.9 %)     (3,834,145 )     (74.2 %)
 
                                                
Gross Margin — Housing
     322,796       15.6 %     634,205       24.4 %     616,183       16.1 %     1,329,752       25.8 %
 
                                                
 
Revenues — Land Sales & Other
     41,485               56,208               70,567               143,987          
Cost of Sales — Land Sales & Other
     (927,239 )             (165,070 )             (1,102,806 )             (269,847 )        
 
                                                        
Gross Margin — Land Sales & Other
     (885,754 )             (108,862 )             (1,032,239 )             (125,860 )        
 
                                                        
 
Total Gross Margin
     (562,958 )     (26.7 %)     525,343       19.8 %     (416,056 )     (10.6 %)     1,203,892       22.7 %
 
Selling, General & Administrative (A)
     (296,631 )     (14.1 %)     (375,629 )     (14.1 %)     (595,259 )     (15.2 %)     (752,933 )     (14.2 %)
 
Goodwill Impairment
     (61,322 )     (2.9 %)     —       — %     (61,322 )     (1.6 %)     —       — %
 
Other Income (Expense) (B)
     (31,782 )     (1.5 %)     (979 )     (0.1 %)     (51,835 )     (1.4 %)     9,689       0.2 %
 
                                                
 
Operating Earnings (Loss)
   $ (952,693 )     (45.2 %)   $ 148,735       5.6 %   $ (1,124,472 )     (28.8 %)   $ 460,648       8.7 %
 
                                                        
 
Units Closed
     7,350               8,525               13,445               16,843          
 
Average Unit Sales Price
   $ 280,816             $ 305,201             $ 285,514             $ 306,590          
% Change
     (8.0 %)             2.9 %             (6.9 %)             5.1 %        
 
Average Neighborhoods
     658               692               667               680          
% Change
     (4.9 %)             12.5 %             (1.9 %)             11.3 %        
 
(A)   Selling, General & Administrative expenses above are those associated with field operations. As noted on Attachments 1 and 3, home building corporate general and administrative expenses have been reclassified to Corporate General and Administrative Expense and are no longer included in the calculation of home building operating earnings, consistent with the structure of the internal organization. Prior periods have been restated accordingly.
 
(B)   Other Income (Expense) includes losses from unconsolidated entities of $36,840, $5,706, $62,193 and $201, respectively.
IMPAIRMENTS AND WRITE-OFFS
                                 
    Quarter Ended September 30,     Six Months Ended September 30,  
    2007     2006     2007     2006  
Impairment Charges
   $ 846,887     $ 30,024     $ 989,479     $ 30,024  
Write-offs of Land Deposits and Pre-Acquisition Costs
     38,318       89,484       61,188       125,786  
Goodwill Impairment
     61,322       —       61,322       —  
Share of Joint Venture Impairments
     36,612       10,500       63,662       10,500  
 
                        
 
Total Impairments and Write-offs
   $ 983,139     $ 130,008     $ 1,175,651     $ 166,310  
 
                        
LOT POSITION
                         
    As of September 30,  
    2007     2006     Change  
Lot Owned and Controlled:
                        
 
Lots Owned
     92,035       109,854       (16 %)
 
Lots Controlled
     39,480       135,749       (71 %)
 
                    
 
Total
     131,515       245,603       (46 %)
 
                    

 

 

Attachment 5
Centex Corporation and Subsidiaries
Supplemental Home Building Data
Housing Activity by Geographic Area
(Unaudited)
                                                 
    Closings (Units)  
    Quarter Ended September 30,     Six Months Ended September 30,  
    2007     2006     Change     2007     2006     Change  
East
     1,553       1,725       (10 %)     2,672       3,378       (21 %)
Southeast
     965       1,305       (26 %)     1,681       2,498       (33 %)
Central
     1,079       1,274       (15 %)     1,947       2,594       (25 %)
Texas
     1,490       1,608       (7 %)     2,890       3,114       (7 %)
Northwest
     1,009       1,161       (13 %)     1,996       2,251       (11 %)
Southwest
     1,137       1,275       (11 %)     2,032       2,639       (23 %)
Other Home Building
     117       177       (34 %)     227       369       (38 %)
 
                                        
 
 
     7,350       8,525       (14 %)     13,445       16,843       (20 %)
 
                                        
                                                 
    Housing Revenues (Dollars in thousands)  
    Quarter Ended September 30,     Six Months Ended September 30,  
    2007     2006     Change     2007     2006     Change  
East
   $ 474,666     $ 571,021       (17 %)   $ 829,539     $ 1,114,994       (26 %)
Southeast
     253,061       369,567       (32 %)     461,184       740,575       (38 %)
Central
     220,727       278,911       (21 %)     403,747       567,176       (29 %)
Texas
     252,313       254,670       (1 %)     484,704       487,848       (1 %)
Northwest
     395,155       535,351       (26 %)     787,713       1,028,713       (23 %)
Southwest
     423,144       538,676       (21 %)     791,075       1,113,412       (29 %)
Other Home Building
     44,933       53,643       (16 %)     80,775       111,179       (27 %)
 
                                        
 
 
   $ 2,063,999     $ 2,601,839       (21 %)   $ 3,838,737     $ 5,163,897       (26 %)
 
                                        
                                                 
    Sales (Orders) Backlog     Sales (Orders) Backlog  
    (Units)     (Dollars in thousands)  
    As of September 30,     As of September 30,  
    2007     2006     Change     2007     2006     Change  
East
     1,575       2,461       (36 %)   $ 512,869     $ 791,961       (35 %)
Southeast
     1,310       2,802       (53 %)     335,780       886,006       (62 %)
Central
     1,677       2,003       (16 %)     330,122       415,477       (21 %)
Texas
     1,832       2,619       (30 %)     310,524       413,918       (25 %)
Northwest
     1,514       2,105       (28 %)     621,031       964,214       (36 %)
Southwest
     1,653       2,915       (43 %)     540,387       1,311,353       (59 %)
Other Home Building
     72       717       (90 %)     26,674       281,043       (91 %)
 
                                      
 
 
     9,633       15,622       (38 %)   $ 2,677,387     $ 5,063,972       (47 %)
 
                                        
                                                 
    Sales (Orders) (Units)  
    Quarter Ended September 30,     Six Months Ended September 30,  
    2007     2006     Change     2007     2006     Change  
East
     1,117       1,217       (8 %)     2,399       2,766       (13 %)
Southeast
     729       815       (11 %)     1,472       1,832       (20 %)
Central
     907       1,027       (12 %)     1,880       2,335       (19 %)
Texas
     1,267       1,710       (26 %)     2,702       3,544       (24 %)
Northwest
     791       996       (21 %)     1,705       2,142       (20 %)
Southwest
     1,085       1,052       3 %     2,182       2,381       (8 %)
Other Home Building
     57       11       418 %     87       78       12 %
 
                                        
 
 
     5,953       6,828       (13 %)     12,427       15,078       (18 %)
 
                                        

 

 

Attachment 6
Centex Corporation and Subsidiaries
Supplemental Financial Services Data
(Unaudited)
CTX Mortgage Company
                                                 
    Quarter Ended September 30,     Six Months Ended September 30,  
    2007     2006     Change     2007     2006     Change  
Originations
                                                
Builder
     5,445       6,429       (15 %)     9,986       12,494       (20 %)
Retail
     6,602       7,739       (15 %)     14,053       16,656       (16 %)
 
                                        
 
Total
     12,047       14,168       (15 %)     24,039       29,150       (18 %)
 
                                        
 
Loan Volume (in billions)
   $ 2.69     $ 3.36       (20 %)   $ 5.46     $ 6.85       (20 %)
 
                                        
 
Average Loan Size
   $ 223,000     $ 237,000       (6 %)   $ 227,000     $ 234,900       (3 %)
 
                                        

 

 

Attachment 7
Centex Corporation and Subsidiaries
Supplemental Financial Data — Debt-to-Capitalization Ratio
(Dollars in millions)
(Unaudited)
                         
    As of September 30, 2007     As of March 31, 2007     As of September 30, 2006  
Consolidated Debt/Capitalization (A)
                        
Debt
   $ 4,460     $ 5,567     $ 6,255  
Minority Interests
     96       177       475  
Less Minority Interests on Lot Options (C)
     (78 )     (153 )     (443 )
Stockholders’ Equity
     4,164       5,112       5,097  
 
                  
Capitalization
     8,642       10,703       11,384  
Less Unrestricted Cash
     (100 )     (883 )     (48 )
 
                  
Net Capitalization
   $ 8,542     $ 9,820     $ 11,336  
 
                  
 
Consolidated Debt-to-Capitalization Ratio
     51.6 %     52.0 %     54.9 %
 
                  
 
Consolidated Net Debt-to-Capitalization Ratio (D)
     51.0 %     47.7 %     54.8 %
 
                  
 
                        
Debt/Capitalization, Excluding Financial Services (B)
                        
Debt
   $ 3,659     $ 3,904     $ 4,455  
Minority Interests
     95       176       474  
Less Minority Interests on Lot Options (C)
     (78 )     (153 )     (443 )
Stockholders’ Equity
     4,164       5,112       5,097  
 
                  
Capitalization
     7,840       9,039       9,583  
Less Unrestricted Cash
     (81 )     (871 )     (42 )
 
                  
Net Capitalization
   $ 7,759     $ 8,168     $ 9,541  
 
                  
 
                        
Debt-to-Capitalization Ratio
     46.7 %     43.2 %     46.5 %
 
                  
 
Net Debt-to-Capitalization Ratio (D)
     46.1 %     37.1 %     46.3 %
 
                  
 
(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 include 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.
Debt-to-capitalization is a common financial ratio used in the homebuilding industry to evaluate debt capacity and leverage.

 

 

Attachment 8
Centex Corporation and Subsidiaries
Reconciliation of Housing/Home Building Operating Earnings
(Dollars in thousands)
(unaudited)
                                                                 
    Quarter Ended September 30,     Six Months Ended September 30,  
    2007     2006     2007     2006  
HOME BUILDING
                                                                
 
                                                                
Revenues — Housing
   $ 2,063,999       100.0 %   $ 2,601,839       100.0 %   $ 3,838,737       100.0 %   $ 5,163,897       100.0 %
Cost of Sales — Housing
     (1,741,203 )     (84.4 %)     (1,967,634 )     (75.6 %)     (3,222,554 )     (83.9 %)     (3,834,145 )     (74.2 %)
 
                                                
Gross Margin — Housing
     322,796       15.6 %     634,205       24.4 %     616,183       16.1 %     1,329,752       25.8 %
 
Selling, General & Administrative
     (296,631 )     (14.3 %)     (375,629 )     (14.5 %)     (595,259 )     (15.6 %)     (752,933 )     (14.6 %)
 
                                                
 
Housing Operating Earnings (Loss) (A)
     26,165       1.3 %     258,576       9.9 %     20,924       0.5 %     576,819       11.2 %
 
                                                                
Revenues — Land Sales & Other
     41,485               56,208               70,567               143,987          
Cost of Sales — Land Sales & Other
     (927,239 )             (165,070 )             (1,102,806 )             (269,847 )        
 
                                                        
Gross Margin — Land Sales & Other
     (885,754 )             (108,862 )             (1,032,239 )             (125,860 )        
 
Goodwill Impairment
     (61,322 )             —               (61,322 )             —          
 
Other Income (Expense)
     (31,782 )             (979 )             (51,835 )             9,689          
 
                                                        
 
Operating Earnings (Loss)
   $ (952,693 )     (45.2 %)   $ 148,735       5.6 %   $ (1,124,472 )     (28.8 %)   $ 460,648       8.7 %
 
                                                        
 
(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.