-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FphfuPE92sg1rTngzLDo8s4Ofrcp9GovdLZVIbDpHjHd/R0mi8OJlEDMEo7fHloK FzTXhWsNKxZa/uuxGIKIEw== 0000719547-03-000014.txt : 20030417 0000719547-03-000014.hdr.sgml : 20030417 20030417172129 ACCESSION NUMBER: 0000719547-03-000014 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030417 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030417 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CLAYTON HOMES INC CENTRAL INDEX KEY: 0000719547 STANDARD INDUSTRIAL CLASSIFICATION: MOBILE HOMES [2451] IRS NUMBER: 621671360 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08824 FILM NUMBER: 03654927 BUSINESS ADDRESS: STREET 1: 5000 CLAYTON ROAD CITY: MARYVILLE STATE: TN ZIP: 37804 BUSINESS PHONE: 8653803000 MAIL ADDRESS: STREET 1: 5000 CLAYTON ROAD CITY: MARYVILLE STATE: TN ZIP: 37804 8-K 1 doc1.txt 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) APRIL 17, 2003 - ------------------------------------------------------------------------------- CLAYTON HOMES, INC. - ------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) DELAWARE 1-8824 62-1671360 - ------------------------------------------------------------------------------- (State or other (Commission File (IRS Employer jurisdiction Number) Identification No.) of incorporation) 5000 Clayton Road Maryville, Tennessee 37804 - ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (865) 380-3000 - ------------------------------------------------------------------------------- NOT APPLICABLE - ------------------------------------------------------------------------------- (Former name or former address, if changed since last report) ITEM 5. OTHER EVENTS On April 16, 2003, the Company filed a press release reporting the earnings for the quarter ended March 31, 2003. A copy of the press release is attached as Exhibit 99.1. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. 99.1 Press Release dated April 16, 2003 reporting the earnings for the quarter ended March 31, 2003. SIGNATURE 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. CLAYTON HOMES, INC. --------------------- (Registrant) Date: April 17, 2003 /s/ Kevin T. Clayton ------------------ ----------------------- Kevin T. Clayton Chief Executive Officer and President (Principal Executive Officer) EXHIBIT INDEX EXHIBIT NUMBER DESCRIPTION PAGE - ---------------------------------------------------------------------- 99.1 Press Release dated April 16, 2003 5-8 EXHIBIT 99-1 NEWS RELEASE FOR IMMEDIATE RELEASE - ----------------------- APRIL 16, 2003 CONTACT: INVESTOR RELATIONS PHONE: 865-380-3206 FAX: 865-380-3784 CLAYTON HOMES (CMH, NYSE) EARNS $26 MILLION FOR THE THIRD QUARTER KNOXVILLE, TENN. - For the third quarter ending March 31, Clayton Homes, Inc. reported net income of $26 million and earnings per share of 19 cents, down 10% and 10% respectively. "Retail same store sales dollars increased 5%, and the communities group added a property in San Antonio and in Kannapolis, NC," remarked president and CEO Kevin T. Clayton. "The lack of independent financing continues to negatively impact results in our manufacturing group, with capacity utilization falling to 48% and shipments to independent retailers declining by 30%. Additionally, the asset backed securitization market remained turbulent, as the company sold $262 million of the $290 million in bonds that were offered." Clayton Homes, Inc. is a vertically integrated manufactured housing company with 20 manufacturing plants, 296 Company owned stores, 611 independent retailers, 85 manufactured housing communities, and financial services operations that provide mortgage services for 168,000 customers and insurance protection for 100,000 families.
SUMMARY RESULTS THREE MONTHS ENDED (in thousands except per share data) MARCH 31 2003 2002 CHANGE ------ ------ ------ REVENUES $277,125 $269,908 3% EARNINGS BEFORE TAXES 41,564 46,381 -10% NET INCOME $26,164 $29,181 -10% AVERAGE SHARES OUTSTANDING (DILUTED) 136,482 138,804 -2% EARNINGS PER SHARE (DILUTED) $.19 $.21 -10%
SUMMARY RESULTS NINE MONTHS ENDED (in thousands except per share data) MARCH 31 2003 2002 CHANGE ------ ------ ------ REVENUES $884,011 $863,098 2% EARNINGS BEFORE TAXES 137,174 141,909 -3% NET INCOME $86,374 $89,409 -3% AVERAGE SHARES OUTSTANDING (DILUTED) 136,709 138,782 -1% EARNINGS PER SHARE (DILUTED) $.63 $.64 -2%
Certain statements may be considered forward looking and involve certain risks and uncertainties that may cause actual results to differ materially from expectations.
EARNINGS CLAYTON HOMES, INC. 6 Mos. ENDED Dec. 31 (Unaudited - in $ thousands except per share data) 2002 2001 % +/- ------ ------ ------ SALES: Manufacturing 253,289 265,966 -4.8% Less Intercompany (160,150) (149,922) 6.8% ------- ------- ------ Net Manufacturing 93,139 116,044 -19.7% Retail - New 301,985 282,232 7.0% - Used 16,241 21,129 -23.1% ------- ------- ------ Total Retail 318,226 303,361 4.9% Communities - New 16,012 11,739 36.4% - Used 8,768 4,112 113.2% ------- ------- ------ Total Communities 24,780 15,851 56.3% Sales 436,145 435,256 0.2% Financial Services 134,400 121,957 10.2% Rental and Other Income 36,341 35,977 1.0% ------- ------- ------ OPERATING REVENUE 606,886 593,190 2.3% Cost Of Sales 285,459 284,524 0.3% Selling, General & Administrative 204,774 197,400 3.7% Financial Services Interest 90 236 -61.9% Provision for Credit Losses 15,900 10,500 51.4% ------- ------- ------ OPERATING EXPENSES 506,223 492,660 2.8% OPERATING INCOME 100,663 100,530 0.1% Interest Income (expense), net / other (5,053) (5,002) -1.0% ------- ------- ------ Income Before Income Taxes 95,610 95,528 0.1% Tax Rate 37.0% 37.0% Provision for Income Taxes 35,400 35,300 0.3% ------- ------- ------ NET INCOME 60,210 60,228 0.0% EARNINGS PER SHARE Basic $0.44 $0.44 0.0% Diluted $0.44 $0.43 2.3% AVERAGE SHARES OUTSTANDING Basic 136,308 137,711 -1.0% Diluted 136,816 138,785 -1.4%
EARNINGS CLAYTON HOMES, INC. 3 Mos. ENDED Mar. 31 (Unaudited - in $ thousands except per share data) 2003 2002 % +/- ------ ------ ------ SALES: Manufacturing 106,604 129,719 -17.8% Less Intercompany (71,755) (81,842) -12.3% ------- ------- ------ Net Manufacturing 34,849 47,877 -27.2% Retail - New 135,124 120,069 12.5% - Used 6,023 11,140 -45.9% ------- ------- ------ Total Retail 141,147 131,209 7.6% Communities - New 9,726 5,126 89.7% - Used 4,582 2,962 54.7% ------- ------- ------ Total Communities 14,308 8,088 76.9% Sales 190,304 187,174 1.7% Financial Services 67,861 63,845 6.3% Rental and Other Income 18,960 18,889 0.4% ------- ------- ------ OPERATING REVENUE 277,125 269,908 2.7% Cost Of Sales 123,792 122,421 1.1% Selling, General & Administrative 102,992 98,575 4.5% Financial Services Interest 14 89 -84.3% Provision for Credit Losses 10,200 5,000 104.0% ------- ------- ------ OPERATING EXPENSES 236,998 226,085 4.8% OPERATING INCOME 40,127 43,823 -8.4% Interest Income (expense), net / other 1,437 2,558 -43.8% ------- ------- ------ Income Before Income Taxes 41,564 46,381 -10.4% Tax Rate 37.1% 37.1% Provision for Income Taxes 15,400 17,200 -10.5% ------- ------- ------ NET INCOME 26,164 29,181 -10.3% EARNINGS PER SHARE Basic $0.19 $0.21 -9.5% Diluted $0.19 $0.21 -9.5% AVERAGE SHARES OUTSTANDING Basic 136,111 137,602 -1.1% Diluted 136,482 138,804 -1.7%
EARNINGS CLAYTON HOMES, INC. 9 Mos. ENDED Mar. 31 (Unaudited - in $ thousands except per share data) 2003 2002 % +/- ------ ------ ------ SALES: Manufacturing 359,893 395,685 -9.0% Less Intercompany (231,905) (231,764) 0.1% ------- ------- ------ Net Manufacturing 127,988 163,921 -21.9% Retail - New 437,109 402,301 8.7% - Used 22,264 32,269 -31.0% ------- ------- ------ Total Retail 459,373 434,570 5.7% Communities - New 25,738 16,865 52.6% - Used 13,350 7,074 88.7% ------- ------- ------ Total Communities 39,088 23,939 63.3% Sales 626,449 622,430 0.6% Financial Services 202,261 185,802 8.9% Rental and Other Income 55,301 54,866 0.8% ------- ------- ------ OPERATING REVENUE 884,011 863,098 2.4% Cost Of Sales 409,251 406,945 0.6% Selling, General & Administrative 307,766 295,975 4.0% Financial Services Interest 104 325 -68.0% Provision for Credit Losses 26,100 15,500 68.4% ------- ------- ------ OPERATING EXPENSES 743,221 718,745 3.4% OPERATING INCOME 140,790 144,353 -2.5% Interest Income (expense), net / other (3,616) (2,444) -47.9% ------- ------- ------ Income Before Income Taxes 137,174 141,909 -3.3% Tax Rate 37.0% 37.0% Provision for Income Taxes 50,800 52,500 -3.2% ------- ------- ------ NET INCOME 86,374 89,409 -3.4% EARNINGS PER SHARE Basic $0.63 $0.65 -3.1% Diluted $0.63 $0.64 -1.6% AVERAGE SHARES OUTSTANDING Basic 136,244 137,675 -1.0% Diluted 136,709 138,782 -1.5%
CONDENSED CONSOLIDATED BALANCE SHEETS (in $ thousands) (unaudited) March 31, June 30, 2003 2002 Assets Cash & cash equivalents 28,999 83,729 Receivables, net 988,164 978,585 Inventories 194,153 189,976 Property, plant, & equipment, net 316,091 310,764 Other assets 322,835 265,349 TOTAL ASSETS 1,850,242 1,828,403 Liabilities & Shareholders' Equity Accounts payable & accrued liabilities 117,043 139,308 Debt obligations 115,904 92,912 Other liabilities 300,510 334,226 Shareholders' equity 1,316,785 1,261,957 TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 1,850,242 1,828,403
OPERATING DATA CLAYTON HOMES, INC. 6 Mos. ENDED Dec. 31 2002 2001 % +/- ------ ------ ------ UNIT SALES: MANUFACTURING GROUP Single-section 4,117 4,677 -12.0% Multi-section 5,299 5,571 -4.9% ------ ------ ------ Total shipped 9,416 10,248 -8.1% Less Intercompany (5,847) (5,795) 0.9% ------ ------ ------ NET MANUFACTURING 3,569 4,453 -19.9% RETAIL GROUP New Single-section 2,859 2,939 -2.7% New Multi-section 3,518 3,389 3.8% ------ ------ ------ TOTAL NEW 6,377 6,328 0.8% USED 1,075 1,545 -30.4% ------ ------ ------ TOTAL RETAIL 7,452 7,873 -5.3% COMMUNITIES GROUP New 391 308 26.9% Used 310 170 82.4% ------ ------ ------ TOTAL COMMUNITIES 701 478 46.7% TOTAL HOMES SOLD 11,722 12,804 -8.5% NUMBER [actual]: PLANTS 20 20 RETAILERS - Independent 622 578 7.6% RETAILERS - Company-owned 290 292 -0.7% COMMUNITIES 83 81 2.5% Sites owned 21,632 21,129 2.4% Sites rented 16,245 15,665 3.7% Percent occupied 75.1% 74.1% AVERAGES NUMBER [average]: PLANTS 20 20 RETAILERS - Independent 612 606 0.9% RETAILERS - Company-owned 289 295 -2.0% COMMUNITIES 83 81 1.9% Sites owned 21,507 21,125 1.8% Sites rented 16,201 15,701 3.2% Percent occupied 75.3% 74.3% AVERAGE UNIT PRICE: WHOLESALE - ALL $26,900 $25,953 3.6% WHOLESALE - INDEPENDENT ONLY 26,097 26,060 0.1% RETAIL - New 47,355 44,601 6.2% RETAIL - Used 15,108 13,676 10.5% COMMUNITIES - New 40,950 38,113 7.4% TOTAL RETAIL AND COMMUNITIES $42,071 $38,224 10.1% SALES $ [thousands] PER- PLANT $12,664 $13,298 -4.8% INDEPENDENT RETAILER 152 191 -20.5% COMPANY-OWNED SALES CENTER 1,103 1,030 7.1% COMMUNITY $300 $196 53.5% TOTAL HOMES SOLD BY COMPANY-OWNED 25.8 26.7 -3.4% NEW FLOORS SOLD BY COMPANY-OWNED 34.3 33.0 3.9% ORDER BACKLOGS (thousands) $17,400 $40,100 -56.6% PAST DUE Originated 3.43% 3.37% All (includes purchased loans) 3.89% 4.23%
OPERATING DATA CLAYTON HOMES, INC. 3 Mos. ENDED Mar. 31 2003 2002 % +/- ------ ------ ------ UNIT SALES: MANUFACTURING GROUP Single-section 1,772 2,153 -17.7% Multi-section 2,224 2,767 -19.6% ------ ------ ------ Total shipped 3,996 4,920 -18.8% Less Intercompany (2,704) (3,081) -12.2% ------ ------ ------ NET MANUFACTURING 1,292 1,839 -29.7% RETAIL GROUP New Single-section 1,366 1,383 -1.2% New Multi-section 1,500 1,367 9.7% ------ ------ ------ TOTAL NEW 2,866 2,750 4.2% USED 491 774 -36.6% ------ ------ ------ TOTAL RETAIL 3,357 3,524 -4.7% COMMUNITIES GROUP New 243 134 81.3% Used 168 119 41.2% ------ ------ ------ TOTAL COMMUNITIES 411 253 62.5% TOTAL HOMES SOLD 5,060 5,616 -9.9% NUMBER [actual]: PLANTS 20 20 RETAILERS - Independent 611 583 4.8% RETAILERS - Company-owned 296 288 2.8% COMMUNITIES 85 81 4.9% Sites owned 22,436 21,260 5.5% Sites rented 16,652 15,936 4.5% Percent occupied 74.2% 75.0% AVERAGES NUMBER [average]: PLANTS 20 20 RETAILERS - Independent 617 581 6.2% RETAILERS - Company-owned 293 290 1.0% COMMUNITIES 84 81 3.7% Sites owned 22,034 21,195 4.0% Sites rented 16,449 15,801 4.1% Percent occupied 74.7% 74.6% AVERAGE UNIT PRICE: WHOLESALE - ALL $26,678 $26,366 1.2% WHOLESALE - INDEPENDENT ONLY 26,973 26,034 3.6% RETAIL - New 47,147 43,661 8.0% RETAIL - Used 12,267 14,393 -14.8% COMMUNITIES - New 40,026 38,256 4.6% TOTAL RETAIL AND COMMUNITIES $41,257 $36,880 11.9% SALES $ [thousands] PER- PLANT $5,330 $6,486 -17.8% INDEPENDENT RETAILER 57 82 -31.5% COMPANY-OWNED SALES CENTER 482 452 6.5% COMMUNITY $170 $100 70.6% TOTAL HOMES SOLD BY COMPANY-OWNED 11.5 12.2 -5.7% NEW FLOORS SOLD BY COMPANY-OWNED 14.9 14.2 5.0% ORDER BACKLOGS (thousands) $14,900 $21,400 -30.4% PAST DUE Originated 2.54% 2.34% All (includes purchased loans) 2.86% 3.02%
OPERATING DATA CLAYTON HOMES, INC. 9 Mos. ENDED Mar. 31 2003 2002 % +/- ------ ------ ------ UNIT SALES: MANUFACTURING GROUP Single-section 5,889 6,830 -13.8% Multi-section 7,523 8,338 -9.8% ------ ------ ------ Total shipped 13,412 15,168 -11.6% Less Intercompany (8,551) (8,876) -3.7% ------ ------ ------ NET MANUFACTURING 4,861 6,292 -22.7% RETAIL GROUP New Single-section 4,225 4,322 -2.2% New Multi-section 5,018 4,756 5.5% ------ ------ ------ TOTAL NEW 9,243 9,078 1.8% USED 1,566 2,319 -32.5% ------ ------ ------ TOTAL RETAIL 10,809 11,397 -5.2% COMMUNITIES GROUP New 634 442 43.4% Used 478 289 65.4% ------ ------ ------ TOTAL COMMUNITIES 1,112 731 52.1% TOTAL HOMES SOLD 16,782 18,420 -8.9% AVERAGES NUMBER [average]: PLANTS 20 20 RETAILERS - Independent 606 609 -0.4% RETAILERS - Company-owned 292 293 -0.3% COMMUNITIES 84 81 3.1% Sites owned 21,909 21,191 3.4% Sites rented 16,404 15,837 3.6% Percent occupied 74.9% 74.7% AVERAGE UNIT PRICE: WHOLESALE - ALL $26,834 $26,087 2.9% WHOLESALE - INDEPENDENT ONLY 26,329 26,052 1.1% RETAIL - New 47,291 44,316 6.7% RETAIL - Used 14,217 13,915 2.2% COMMUNITIES - New 40,596 38,157 6.4% TOTAL RETAIL AND COMMUNITIES $41,814 $37,806 10.6% SALES $ [thousands] PER- PLANT $17,995 $19,784 -9.0% INDEPENDENT RETAILER 211 269 -21.6% COMPANY-OWNED SALES CENTER 1,576 1,486 6.1% COMMUNITY $468 $296 58.4% TOTAL HOMES SOLD BY COMPANY-OWNED 37.1 39.0 -4.8% NEW FLOORS SOLD BY COMPANY-OWNED 48.9 47.3 3.4%
STATISTICS TO ANSWER FREQUENTLY ASKED QUESTIONS: (Data for March 2003 Quarter, Unless Otherwise Noted) CLAYTON HOMES - ------------- Actual shares outstanding: 136,202,552 Shares repurchased in quarter: 0 Capital expenditures in quarter: $11.9 million YTD capital expenditures: $20.6 million Off balance sheet debt: $0 RETAIL - ------ Same store sales dollar increase: 5% Average new units per store: 17.4 Average foreclosures per store: 5.3 Average foreclosures per store last March quarter: 4.4 Stores opened in quarter: 8 Stores closed in quarter: 2 Quarter segment income %: 10% YTD segment income %: 10% MANUFACTURING - ------------- Capacity utilization: 48% Capacity utilization last March quarter: 57% Material prices trend: flat Quarter segment income %: 15% YTD segment income %: 19% FINANCIAL SERVICES - ------------------ Mortgage applications change: 13% Average term originated contracts: 17.3 years Net losses on originated contracts: 2.1% Total net losses (including acquired): 2.5% Gain on sale per share: 2 cents Total loans serviced: $5.3 billion ABS bonds held on balance sheet: $87 million Floor plan finance receivables: $137 million Credit losses netted in F/S revenues: $19.4 million Residual impairment: $2.1 million Quarter segment income %: 80% YTD segment income %: 74% COMMUNITIES - ----------- Rental revenue change: 5% New sites added since March 2002: 1,176 New sites that were acquired: 537 New sites that were expansions: 444 Communities portion of CAPX for quarter: 78% Quarter segment income %: 12% YTD segment income %: 8% -----END PRIVACY-ENHANCED MESSAGE-----