Centex Reports Record Fourth Quarter Results; Company Marks Fourth Consecutive Record Year.Business Editors DALLAS--(BUSINESS WIRE)--April 27, 2000 Centex Centex (NYSE: CTX) began trading publicly in 1969. Since the company’s founding in 1950 as a Dallas-based residential construction company, it has evolved into a company whose principal operations are focused on residential and commercial construction and related Corporation (NYSE NYSE See: New York Stock Exchange :CTX CTX Context (Management; Tandem) CTX Centex Corporation (stock symbol) CTX Centrex CTX Cyclophosphamide CTX Corporate Trade Exchange CTX Cytoxan CTX Cholera Toxin CTX Clinical Trial Exemption ) today announced the highest quarterly earnings in its history for the quarter ended March 31, 2000, the fourth quarter of fiscal 2000, as well as record results for the fiscal year. For this year's fourth quarter, Centex reported net earnings of $70,025,000, a 3% increase over $68,195,000 for the same quarter last year. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $1.17 this year were 6% higher than $1.10 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the same quarter a year ago. Revenues for the fourth quarter this year rose 12% to $1,725,529,000 from $1,545,066,000 for the same quarter in fiscal 1999. During the quarter, as a result of increased current and projected interest rates, the Company made an adjustment related to sub-prime loan securitizations which reduced net earnings by $10 million ($0.17 per diluted share). As described later in this release, the Company is also changing to the "Portfolio Method" to account for all future sub-prime loan securitizations. For fiscal 2000, Centex reported an 11% increase in net earnings to $257,132,000 from net earnings of $231,962,000 for fiscal 1999. Diluted earnings per share of $4.22 were 13% higher than $3.75 a year ago. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenues for fiscal 2000 reached an all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal high $5,956,366,000, a 16% improvement over $5,154,840,000 for fiscal 1999. Centex's return on beginning stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. was 21.5% for fiscal 2000 versus 23.4% for fiscal 1999. Earnings per share for both the quarter and the year rose a higher percentage than net earnings due to fewer average shares outstanding in the current periods. The record financial results for the quarter and the year were due primarily to all-time high results from the Company's Home Building, Construction Products, and Contracting and Construction Services operations. Through its subsidiaries, Centex ranks among the nation's leading home builders, non-bank-affiliated retail mortgage banking lenders and commercial contractors. Centex also has an investment real estate operation and currently owns approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 65% of Centex Construction Products, Inc., a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. . HOME BUILDING Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before from Centex Homes (Conventional Homes) were $120.5 million for the fourth quarter this year, 32% higher than $91.3 million for the fourth quarter a year ago, primarily due to a record number of closings. Operating earnings from Cavco Industries (Manufactured Homes) were $518,000 for the quarter this year, 74% lower than a year ago, primarily due to a 26% decline in unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. and to costs associated with its retail operation. Total operating earnings from Home Building reached $121.1 million for the quarter this year, 30% higher than $93.3 million for last year's fourth quarter. Current year fourth quarter revenues from Conventional Homes were $1.2 billion this year, a 31% increase over $937.9 million for the same quarter last year. Manufactured Homes revenues for the current quarter were $37.5 million, 21% less than $47.8 million for the same quarter a year ago. Total Home Building revenues reached $1.3 billion for this year's fourth quarter, 28% higher than $985.7 million for the same quarter in fiscal 1999. Closings of Conventional Homes reached 6,050 units for the quarter this year, an all-time high and 28% above 4,742 closings for last year's fourth quarter. Home sales (orders) for this year's quarter totaled a record 6,216 units, 22% higher than sales of 5,115 units for the same quarter last year. The backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of homes sold but not closed at March 31, 2000 was 7,579 units, 12% higher than the 6,792 unit backlog at March 31, 1999. The average Conventional Homes sales price for this year's fourth quarter was $197,884, 5% higher than $188,963 for the same quarter last year. The per unit operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: for the quarter this year was a record $19,924, slightly higher than $19,243 for the same quarter last year. The Conventional Homes operating margin as a percent of revenue was 9.8% for the fiscal 2000 fourth quarter compared to 9.7% for the same quarter last year. Manufactured Homes sold 1,227 units for the fourth quarter this year versus 1,660 units for the same quarter a year ago. The Manufactured Homes operating margin as a percent of revenue, before the inclusion of Cavco's retail sales operation, was 8.2% for the quarter this year versus 9.9% for the fourth quarter last year. Fiscal 2000 operating earnings from Conventional Homes reached a record $323.2 million, 33% higher than the $242.2 million of operating earnings reported in fiscal 1999. Fiscal year operating earnings from Manufactured Homes, net of minority interest, were $7.3 million, 29% lower than fiscal 1999 earnings. Total operating earnings from Home Building of $330.5 million fiscal for 2000 surpassed fiscal 1999's record results by 31%. For the year, Conventional Homes revenues were $3.7 billion, a 31% improvement over last year's revenues. Manufactured Homes revenues of $183.5 million were 3% higher than fiscal 1999 revenues. Total Home Building revenues for fiscal 2000 reached $3.9 billion, 29% higher than the prior year's revenues. Conventional Homes closings for fiscal 2000 totaled a record 18,904 units, 28% higher than fiscal 1999 closings of 14,792 units. Fiscal 2000 orders for Conventional Homes rose 22% to 19,407 units from 15,931 units last year. Centex's average Conventional Homes sales price for fiscal 2000 was $191,568, slightly higher than fiscal 1999's average sales price of $185,668. Operating earnings per closed unit averaged $17,098 this year, versus $16,375 a year ago. Operating margin as a percent of revenue was 8.8% for fiscal 2000 versus 8.6% for fiscal 1999. Manufactured Homes sold 5,950 units during fiscal 2000, 8% less than last year's sales. The Manufactured Homes operating margin, prior to the inclusion of Cavco's retail sales operation, was 10.8% this year versus 11.6% in fiscal 1999. INTERNATIONAL HOME BUILDING London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. , England-based Fairclough Fairclough could refer to:
INVESTMENT REAL ESTATE For the quarter ended March 31, 2000, Centex's Investment Real Estate operation, through which all investment property transactions are reported, had operating earnings of $6 million, 16% less than earnings of $7.2 million for the same quarter a year ago. For fiscal 2000, Investment Real Estate operating earnings were $30.1 million, 2% higher than last year's results. FINANCIAL SERVICES The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Centex Home Equity Corporation's (CHEC CHEC Children's Health Environmental Coalition CHEC Christian Home Educators of Colorado CHEC Commonwealth Human Ecology Council (UK) CHEC Coffs Harbour Education Campus ) existing portfolio of sub-prime loans is performing in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with or better than the assumptions used in connection with its "Gain on Sale" securitizations and is among the best performing in the industry. Nevertheless, as a result of increased current and projected interest rates, CHEC increased the discount rate used to value future cash flows from such securitizations from 12% to 15% during the quarter. The discount rate increase resulted in a $16 million reduction in CHEC's earnings for the quarter ended March 31, 2000. In addition, Centex has concluded that the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. benefits of converting to the "Portfolio Method" to report CHEC's operating results significantly outweigh out·weigh tr.v. out·weighed, out·weigh·ing, out·weighs 1. To weigh more than. 2. To be more significant than; exceed in value or importance: The benefits outweigh the risks. the short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. benefit of higher earnings under the "Gain on Sale" method previously used for its mortgage loan securitizations. The change from "Gain on Sale" accounting to the "Portfolio Method" will have no effect on the profit recognized over the life of each mortgage loan. Rather, the adjustment will merely change the timing of profit recognition. Under the "Gain on Sale" method, projected profit was recognized at the time the security was created. Now, under the "Portfolio Method," CHEC will recognize earnings over the life of the loans (interest income less interest expense and credit losses). As a result, CHEC's reported earnings from each loan under the "Portfolio Method" will be lower at the time of securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. (compared to the "Gain on Sale" method) but higher as mortgage loan payments are received during the life of the securitizations. Accordingly, effective as of March 31, 2000, CHEC will structure all of its future loan securitizations in a manner that results in the utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of the more conservative and predictable "Portfolio Method" for reporting its operating results. This change will negatively impact CHEC's operating results in fiscal 2001. Summarized below are the operating results for the Financial Services group:
Operating Earnings ($ in Millions)
Periods Ending March 31,
-----------------------------------
Quarter Fiscal Year
---------------- ---------------
2000 1999 2000 1999
------ ------ ------ ------
Financial Services Group,
before adjustment $ 6.1 $ 20.7 $ 48.5 $ 92.3
Discount rate adjustment (16.0) - (16.0) -
------ ------ ------ ------
Financial Services Group,
after adjustment $ (9.9) $ 20.7 $ 32.5 $ 92.3
====== ====== ====== ======
Components:
CTX Mortgage Company $ 3.4 $ 19.1 $ 33.9 $ 85.4
====== ====== ====== ======
Centex Home Equity Corporation,
before adjustment $ 3.7 $ 2.6 $ 18.7 $ 9.7
Discount rate adjustment (16.0) - (16.0) -
------ ------ ------ ------
CHEC Total $(12.3) $ 2.6 $ 2.7 $ 9.7
====== ====== ====== ======
Centex Finance, manufactured
housing finance (discontinued) $ (1.0) $ (1.0) $ (4.1) $ (2.8)
====== ====== ====== ======
The decline in the earnings of CTX Mortgage is related to a loss in mortgage refinancings due to higher interest rates. The division's manufactured housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected finance business was discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: because of deteriorating de·te·ri·o·rate v. de·te·ri·o·rat·ed, de·te·ri·o·rat·ing, de·te·ri·o·rates v.tr. To diminish or impair in quality, character, or value: conditions in that industry. See detailed information regarding originations and applications for both CTX and CHEC on Attachment See attach a file. 6. CONSTRUCTION PRODUCTS Operating earnings from Centex Construction Products, Inc. (CXP CXP Common IFF Digital Transponder Program (US Navy shipboard and aircraft Identification Friend or Foe Transponder) ), net of minority interest, were $22.9 million for the fourth quarter fiscal 2000, a 44% improvement over results for the same quarter in fiscal 1999. Revenues from CXP were $95.3 million for the fourth quarter of fiscal 2000, 20% higher than for the year ago period. For fiscal 2000, operating earnings from CXP, net of minority interest, were $104.9 million, 52% higher than fiscal 1999 earnings. Fiscal 2000 revenues from CXP were $418.7 million, 25% higher than revenues for the prior year. CXP's record results for both the quarter and the fiscal year were due to improved performances by its Gypsum gypsum (jĭp`səm), mineral composed of calcium sulfate (calcium, sulfur, and oxygen) with two molecules of water, CaSO4·2H2O. It is the most common sulfate mineral, occurring in many places in a variety of forms. Wallboard and its Concrete and Aggregates businesses. CONTRACTING AND CONSTRUCTION SERVICES Contracting and Construction Services reported operating earnings of $6.0 million for the fourth quarter of fiscal 2000, 58% higher than earnings for the same quarter last year. Revenues from this segment were $277.1 million for the quarter this year, 21% less than revenues for the year ago quarter. New contracts for the quarter totaled $337 million, a 218% increase over the new contract total for the same quarter a year ago. For fiscal 2000, Contracting and Construction Services reported operating earnings of $23.5 million, 54% higher than fiscal 1999 earnings. Revenues for fiscal 2000 were $1.2 billion, 11% less than prior year revenues. During fiscal 2000, Contracting and Construction Services was awarded approximately $1.6 billion of new contracts, a 46% increase over fiscal 1999's new contract total. The backlog of uncompleted construction contracts at March 31, 2000 was $1.4 billion, a 47% increase over the backlog of $937 million at March 31, 1999. Contracting operating profit margins Operating profit margin The ratio of operating profit to net sales. continue to improve. OTHER DEVELOPMENTS During the quarter, Centex Title acquired Benefit Land Title Company and Benefit Land Title Insurance Company ("Benefit") of Santa Ana, California Santa Ana is the most populous city in Orange County, California and is the county seat. It lies approximately 10 miles inland from the Pacific Ocean, on the largely seasonal Santa Ana River. . Benefit currently writes approximately 18,000 title policies annually in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . The acquisition provides Centex with an incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. margin in addition to its current title/escrow agent fees. In addition, Benefit will have the opportunity to service customers of its sister companies, specifically the home building and mortgage lending operations in California and in other states where it is licensed. Also during the quarter, CHEC completed the securitization of $310 million of sub-prime equity mortgage loans. CHEC is also the servicer for the mortgage loans included in the securitization. This securitization is a continuation continuation - continuation passing style of CHEC's strategy to obtain regular access to public sources of capital and liquidity and to continue to broaden the investor base for CHEC's structured finance transactions. Since February February: see month. 1998, CHEC has completed nine securitizations totaling approximately $2.4 billion of sub-prime mortgage loans. After the end of the quarter, CTX Mortgage announced it has established a program to sell mortgage loans to Centex Home Mortgage, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (CHM chm - Compiled HTML ), an unaffiliated, special-purpose entity Special-Purpose Entity A financing technique in which a company decreases its risk by creating separate partnerships, rather than subsidiaries, for certain holdings and solicits outside investors to take on the risk. . CHM will hold the loans and CTX will service them on an interim basis until they are sold or securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. . CHM may hold up to $1.5 billion of home mortgages at any one time. This program, the first for home mortgages, will enable CTX to originate o·rig·i·nate v. 1. To bring into being; create. 2. To come into being; start. loans without having to rely on external borrowings or cash from Centex Corporation. This substantial reduction in CTX's need for short-term funding will be reflected on Centex's balance sheet as of March 31, 2000. OUTLOOK Thus far, rising interest rates have had minimal impact on home sales, which continue to be strong. However, the escalating rates are expected to continue to negatively impact the Company's Financial Services results and these results will also be affected by the change in CHEC's method of accounting to the "Portfolio Method." Contracting and Construction Services and Centex Construction Products are positioned to record superior performances during the current fiscal year. Despite interest rate concerns, Centex should have another excellent year in fiscal 2001. Forward Looking Statements. This news release contains forward looking statements within the meaning of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Reform Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. The statements are not guarantees of future performance and involve a number of risks and uncertainties that may cause actual results and outcomes to differ materially from what is expressed in such statements. The principal risks and uncertainties that may affect the Company's actual performance and results of operations include without limitation general economic conditions and interest rates; competitive factors; and building materials Building materials used in the construction industry to create . These categories of materials and products are used by and construction project managers to specify the materials and methods used for . costs. Please see the Company's most recent reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Form 10-Q Form 10-Q See 10-Q. for a more comprehensive list of risks and uncertainties affecting the Company's actual performance and results of operations. NOTE ATTACHMENTS: (1) Summary of Consolidated Earnings (2) Revenues and Earnings by Lines of Business (Quarter) (3) Revenues and Earnings by Lines of Business (Year) (4) Housing Activity by Geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. Area (5) Supplemental Home Building Data (6) Supplemental Financial Services Data (7) Supplemental Construction Products Data (8) Conventional Home Building Margins by Quarter (Fiscal 2000)
Centex Corporation and Subsidiaries
Summary of Consolidated Earnings
(unaudited)
(dollar amounts in thousands, except per share data)
Quarter Ended
March 31,
--------------------------------------
2000 1999 Change
------------- ----------- ------
Revenues $ 1,725,529 $ 1,545,066 12%
Earnings Before Income Taxes $ 114,691 $ 111,572 3%
Net Earnings $ 70,025 $ 68,195 3%
Earnings Per Share:
Basic $ 1.18 $ 1.15 3%
Diluted $ 1.17 $ 1.10 6%
Average Shares Outstanding:
Basic 59,120,730 59,463,751 (1%)
Diluted 60,100,560 61,749,414 (3%)
Year Ended
March 31,
--------------------------------------
2000 1999 Change
----------- ------------ ------
Revenues $ 5,956,366 $ 5,154,840 16%
Earnings Before Income Taxes $ 416,861 $ 373,294 12%
Net Earnings $ 257,132 $ 231,962 11%
Earnings Per Share:
Basic $ 4.34 $ 3.90 11%
Diluted $ 4.22 $ 3.75 13%
Average Shares Outstanding:
Basic 59,308,158 59,488,701 -%
Diluted 60,928,980 61,853,817 (1%)
Centex Corporation and Subsidiaries
Revenues and Earnings by Lines of Business
(dollars in thousands)
Quarter Ended
March 31,
-----------------------------------
2000 1999 Change
----------- --------- -------
Revenues
Home Building:
Conventional Homes $1,225,311 $937,856 31%
Manufactured Homes 37,548 47,808 (21%)
---------- --------
Total Home Building 1,262,859 985,664 28%
73% 64%
Investment Real Estate 3,571 16,215 (78%)
-% 1%
Financial Services 86,679 112,166 (23%)
5% 7%
Construction Products 95,304 79,588 20%
6% 5%
Contracting and Construction
Services 277,116 351,433 (21%)
16% 23%
---------- --------
Total $1,725,529 $ 1,545,066 12%
100% 100%
========== ========
Operating Earnings
Home Building:
Conventional Homes $ 120,542 $ 91,250 32%
Manufactured Homes 518 2,021 (74%)
---------- --------
Total Home Building 121,060 93,271 30%
84% 70%
Investment Real Estate 6,035 7,189 (16%)
4% 5%
Financial Services(A) (9,922) 20,684 (148%)
(7%) 16%
Construction Products 22,947 15,968 44%
16% 12%
Contracting and Construction
Services 6,001 3,805 58%
4% 3%
Other, net (1,220) (8,019) 85%
(1%) (6%)
---------- -----------
Total Operating Earnings 144,901 132,898 9%
100% 100%
Corporate General Expenses (9,194) (8,909)
Interest Expense (21,016) (12,417)
---------- --------
Earnings Before Income Taxes $ 114,691 $111,572 3%
========== ========
(A) During the quarter, as a result of increased current and projected
interest rates, the Company re-evaluated the discount rate used to
value future cash flows from its "Gain on Sale" loan
securitizations and increased it from 12% to 15%. The discount
rate increase resulted in a $16 million reduction in CHEC's
earnings for the quarter ended March 31, 2000. In addition,
effective as of March 31, 2000, Centex concluded that the
long-term benefits of converting to the "Portfolio" method of
reporting Centex Home Equity Corporation's ("CHEC") operations
significantly outweighed the short-term benefit of higher earnings
under the "Gain on Sale" method previously used for its mortgage
loan securitizations.
Centex Corporation and Subsidiaries
Revenues and Earnings by Lines of Business
(dollars in thousands)
Year Ended
March 31,
----------------------------------
2000 1999 Change
--------- ---------- ------
Revenues
Home Building:
Conventional Homes $3,686,844 $ 2,819,442 31%
Manufactured Homes 183,526 178,556 3%
---------- ----------
Total Home Building 3,870,370 2,997,998 29%
65% 58%
Investment Real Estate 30,928 33,694 (8%)
1% 1%
Financial Services 430,611 436,299 (1%)
7% 8%
Construction Products 418,695 336,073 25%
7% 7%
Contracting and Construction
Services 1,205,762 1,350,776 (11%)
20% 26%
---------- ----------
Total $ 5,956,366 $ 5,154,840 16%
100% 100%
========== ==========
Operating Earnings
Home Building:
Conventional Homes $ 323,220 $ 242,223 33%
Manufactured Homes(A) 7,329 10,253 (29%)
---------- ----------
Total Home Building 330,549 252,476 31%
64% 57%
Investment Real Estate 30,122 29,420 2%
6% 7%
Financial Services 32,474 92,309 (65%)
6% 21%
Construction Products(A) 104,853 69,189 52%
20% 16%
Contracting and Construction
Services 23,471 15,209 54%
5% 3%
Other, net (4,749) (15,624) 70%
(1%) (4%)
---------- ----------
Total Operating Earnings 516,720 442,979 17%
100% 100%
Corporate General Expenses (33,015) (28,104)
Interest Expense (66,844) (41,581)
---------- ----------
Earnings Before Income Taxes $ 416,861 $ 373,294 12%
========== ==========
(A) Operating earnings for Manufactured Homes and Construction
Products are reflected in this summary net of their respective
minority interests. Operating earnings related to those minority
interests were $1,014 in 2000 and $2,492 in 1999 for Manufactured
Homes and $63,758 in 2000 and $51,121 in 1999 for Construction
Products. The Manufactured Homes minority interest was purchased
during the quarter ended December 31, 1999.
Centex Corporation and Subsidiaries
Housing Activity by Geographic Area
Closings
----------------------------------------------------------
Quarter Ended March 31, Year Ended March 31,
-------------------------- --------------------------
2000 1999 Change 2000 1999 Change
------ ------ ------ ------ ------ ------
West 1,375 984 40% 3,917 3,060 28%
Midwest 949 673 41% 3,089 2,062 50%
East 1,181 1,070 10% 4,134 3,309 25%
Southeast 1,057 864 22% 3,066 2,582 19%
Southwest 1,488 1,151 29% 4,698 3,779 24%
--------- --------- --------- ----------
6,050 4,742 28% 18,904 14,792 28%
========= ========= ========= ==========
Sales (Orders) Backlog
------------------------------
03/31/2000 03/31/1999 Change
---------- ---------- ---------
West 1,099 921 19%
Midwest 1,628 1,355 20%
East 1,519 1,392 9%
Southeast 1,582 1,500 5%
Southwest 1,751 1,624 8%
--------- ---------
7,579 6,792 12%
========= =========
Sales (Orders)
----------------------------------------------------------
Quarter Ended March 31, Year Ended March 31,
-------------------------- --------------------------
2000 1999 Change 2000 1999 Change
------ ------ ------ ------ ------ ------
West 1,371 997 38% 3,966 2,990 33%
Midwest 1,031 890 16% 3,207 2,515 28%
East 1,354 1,108 22% 4,261 3,466 23%
Southeast 1,014 955 6% 3,148 2,950 7%
Southwest 1,446 1,165 24% 4,825 4,010 20%
--------- --------- --------- ---------
6,216 5,115 22% 19,407 15,931 22%
========= ========= ========= =========
Centex Corporation and Subsidiaries
Supplemental Home Building Data
Conventional Homes Results
(dollars in millions, except per unit data)
Quarter Ended March 31,
------------------------------------
2000 1999
----------------- -----------------
Conventional Housing Revenues $1,225.3 100.0% $ 937.8 100.0%
Cost of Sales (953.4) (77.8%) (730.4) (77.9%)
Selling, General & Administrative (151.4) (12.4%) (116.2) (12.4%)
--------- ------- ---------- -------
Operating Earnings $ 120.5 9.8% $ 91.2 9.7%
========= ======= ========== =======
Units Closed 6,050 4,742
Unit Sales Price $197,884 $ 188,963
% Change 4.7% 1.0%
Operating Earnings per Unit $ 19,924 $ 19,243
% Change 3.5% 20.4%
Year Ended March 31,
------------------------------------
2000 1999
----------------- -----------------
Conventional Housing Revenues $3,686.8 100.0% $ 2,819.4 100.0%
Cost of Sales (2,852.3) (77.3%) (2,194.7) (77.8%)
Selling, General & Administrative (511.3) (13.9%) (382.5) (13.6%)
--------- ------- ---------- -------
Operating Earnings $ 323.2 8.8% $ 242.2 8.6%
========= ======= ========== =======
Units Closed 18,904 14,792
Unit Sales Price $191,568 $ 185,668
% Change 3.2% 1.3%
Operating Earnings per Unit $ 17,098 $ 16,375
% Change 4.4% 19.2%
Manufactured Homes Results
(dollars in thousands)
Quarter Ended March 31,
------------------------------------
2000 1999
----------------- -----------------
Manufactured Homes Revenues
(Construction) $ 22,930 100.0% $ 36,135 100.0%
Cost of Sales (17,923) (78.2%) (28,695) (79.4%)
Selling, General & Administrative (3,125) (13.6%) (3,858) (10.7%)
--------- ======= ---------- =======
1,882 8.2% 3,582 9.9%
--------- ======= ---------- =======
Manufactured Homes Revenues
(Retail) 14,618 100.0% 11,673 100.0%
Cost of Sales (11,621) (79.5%) (8,292) (71.0%)
Selling, General & Administrative (3,503) (24.0%) (3,511) (30.1%)
--------- ======= ---------- =======
(506) (3.5%) (130) (1.1%)
--------- ======= ---------- =======
Construction and Retail Earnings 1,376 3,452
Goodwill Amortization (858) (933)
Minority Interest Expense -- (498)
--------- ----------
Group Operating Earnings $ 518 $ 2,021
========= ==========
Units
Units Produced 1,265 1,605
Units Sold - Retail 380 280
Less: Intersegment Sales (418) (225)
--------- ---------
Units Sold 1,227 1,660
========= =========
Year Ended March 31,
------------------------------------
2000 1999
----------------- -----------------
Manufactured Homes Revenues
(Construction) $121,015 100.0% $ 137,710 100.0%
Cost of Sales (94,057) (77.7%) (108,265) (78.6%)
Selling, General & Administrative (13,947) (11.5%) (13,486) (9.8%)
--------- ======= ---------- =======
13,011 10.8% 15,959 11.6%
--------- ======= ---------- =======
Manufactured Homes Revenues
(Retail) 62,511 100.0% 40,846 100.0%
Cost of Sales (49,638) (79.4%) (29,992) (73.4%)
Selling, General & Administrative (14,126) (22.6%) (10,726) (26.3%)
--------- ======= ---------- =======
(1,253) (2.0%) 128 0.3%
--------- ======= ---------- =======
Construction and Retail Earnings 11,758 16,087
Goodwill Amortization (3,415) (3,342)
Minority Interest Expense (1,014) (2,492)
--------- ----------
Group Operating Earnings $ 7,329 $ 10,253
======== =========
Units
Units Produced 5,686 6,275
Units Sold -- Retail 1,492 976
Less: Intersegment Sales (1,228) (811)
--------- ---------
Units Sold 5,950 6,440
======== =========
Centex Corporation and Subsidiaries
Supplemental Financial Services Data
CTX Mortgage Company
Quarter Ended March 31,
-----------------------------------------
2000 1999 Change
----------- ----------- -----------
Originations
Builder 3,469 3,154 10%
Retail 9,554 15,046 (37%)
----------- -----------
Total 13,023 18,200 (28%)
=========== ===========
Applications
Builder 3,604 3,242 11%
Retail 11,280 16,513 (32%)
----------- -----------
Total 14,884 19,755 (25%)
=========== ===========
Loan Volume (in billions) $ 1.80 $ 2.46 (27%)
=========== ===========
Average Loan Size $ 138,400 $ 134,900 3%
=========== ===========
Profit per Loan $ 258 $ 1,047 (75%)
=========== ===========
Year Ended March 31,
-----------------------------------------
2000 1999 Change
----------- ----------- -----------
Originations
Builder 10,958 9,882 11%
Retail 49,404 66,496 (26%)
----------- -----------
Total 60,362 76,378 (21%)
=========== ===========
Applications
Builder 11,724 10,937 7%
Retail 47,370 67,189 (29%)
----------- -----------
Total 59,094 78,126 (24%)
=========== ===========
Loan Volume (in billions) $ 8.14 $ 10.06 (19%)
=========== ===========
Average Loan Size $ 134,900 $ 131,700 2%
=========== ===========
Profit per Loan $ 562 $ 1,118 (50%)
=========== ===========
CHEC (B & C)
Quarter Ended March 31,
-----------------------------------------
2000 1999 Change
----------- ----------- -----------
Originations 5,331 4,241 26%
=========== ===========
Applications 37,665 28,370 33%
=========== ===========
Loan Volume (in billions) $ 0.33 $ 0.28 17%
=========== ===========
Average Loan Size $ 61,700 $ 65,900 (6%)
=========== ===========
Profit per Loan:
Before Discount Rate
Adjustment $ 700 $ 617 13%
Discount Rate Adjustment
(A) (3,001) --
----------- -----------
Total $ (2,301) $ 617 (473%)
=========== ===========
Year Ended March 31,
-----------------------------------------
2000 1999 Change
----------- ----------- -----------
Originations 20,568 15,582 32%
=========== ===========
Applications 127,450 82,803 54%
=========== ===========
Loan Volume (in billions) $ 1.32 $ 1.02 29%
=========== ===========
Average Loan Size $ 64,100 $ 65,200 (2%)
=========== ===========
Profit per Loan:
Before Discount Rate
Adjustment $ 911 $ 620 47%
Discount Rate Adjustment
(A) (778) --
----------- -----------
Total $ 133 $ 620 (79%)
=========== ===========
(A) During the quarter, as a result of increased current and projected
interest rates, the Company re-evaluated the discount rate used to
value future cash flows from its "Gain on Sale" loan
securitizations and increased it from 12% to 15%. The discount
rate increase resulted in a $16 million reduction in CHEC's
earnings for the quarter ended March 31, 2000. In addition,
effective as of March 31, 2000, Centex concluded that the
long-term benefits of converting to the "Portfolio" method of
reporting Centex Home Equity Corporation's ("CHEC") operations
significantly outweighed the short-term benefit of higher earnings
under the "Gain on Sale" method previously used for its mortgage
loan securitizations.
Centex Corporation and Subsidiaries
Supplemental Construction Products Data
(volumes in thousands, except Gypsum Wallboard)
Quarter Ended March 31,
-----------------------
2000 1999 Change
---- ---- ------
Cement
Sales Volumes (Tons) 459 447 3%
Average Net Sales Price $ 67.40 $ 68.13 (1%)
Gypsum Wallboard
Sales Volumes (MMSF) 369 295 25%
Average Net Sales Price $144.71 $133.04 9%
Concrete
Sales Volumes (Cubic Yards) 177 168 5%
Average Net Sales Price $ 51.70 $ 50.22 3%
Aggregates
Sales Volumes (Tons) 717 655 9%
Average Net Sales Price $ 4.25 $ 4.01 6%
Year Ended March 31,
-----------------------
2000 1999 Change
---- ---- ------
Cement
Sales Volumes (Tons) 2,295 2,218 3%
Average Net Sales Price $ 69.25 $ 68.75 1%
Gypsum Wallboard
Sales Volumes (MMSF) 1,363 1,155 18%
Average Net Sales Price $153.57 $122.55 25%
Concrete
Sales Volumes (Cubic Yards) 788 706 12%
Average Net Sales Price $ 52.07 $ 49.78 5%
Aggregates
Sales Volumes (Tons) 3,368 2,916 16%
Average Net Sales Price $ 4.29 $ 4.02 7%
Supplemental Contracting and Construction Services Data
(dollars in millions)
Quarter Ended March 31,
-----------------------
2000 1999 Change
---- ---- ------
New Contracts $ 337 $ 106 218%
====== ======
Backlog at March 31, $ 1,382 $ 937 47%
====== ======
Quarter Ended March 31,
-----------------------
2000 1999 Change
---- ---- ------
New Contracts $ 1,651 $ 1,128 46%
====== ======
Backlog at March 31, $ 1,382 $ 937 47%
====== ======
Centex Corporation and Subsidiaries
Home Building Margins -- Quarterly Summary
For the Quarters Ending,
-------------------- ---------------------
June 30, 1999 September 30, 1999
-------------------- ---------------------
Conventional Housing Revenues $754.6 100.0% $843.7 100.0%
Cost of Sales (581.3) (77.0%) (651.1) (77.2%)
--------- --------- --------- ---------
Gross Margin 173.3 23.0% 192.6 22.8%
Selling, General &
Administrative (114.2) (15.2%) (122.4) (14.5%)
--------- --------- --------- ---------
Operating Earnings $59.1 7.8% $70.2 8.3%
========= ========= ========= =========
Units Closed 3,934 4,425
Unit Sales Price $188,608 $187,700
% Change -- Prior Year 2.3% 1.7%
Operating Earnings/Unit $15,035 $15,864
% Change -- Prior Year 10.2% 5.4%
Gross Margin Per Unit $44,052 $43,525
% Change -- Prior Year 7.4% 5.9%
SG&A Per Unit $29,029 $27,661
% Change -- Prior Year 6.1% 6.2%
For the Quarters Ending,
------------------- --------------------
December 31, 1999 March 31, 2000
------------------- --------------------
Conventional Housing Revenues $863.2 100.0% $1,225.3 100.0%
Cost of Sales (666.6) (77.2%) (953.4) (77.8%)
--------- --------- --------- ---------
Gross Margin 196.6 22.8% 271.9 22.2%
Selling, General &
Administrative (123.3) (14.3%) (151.4) (12.4%)
--------- --------- --------- ---------
Operating Earnings $73.3 8.5% $120.5 9.8%
========= ========= ========= =========
Units Closed 4,495 6,050
Unit Sales Price $189,466 $197,884
% Change -- Prior Year 3.2% 4.7%
Operating Earnings/Unit $16,314 $19,924
% Change -- Prior Year 1.1% 3.5%
Gross Margin Per Unit $43,737 $44,942
% Change -- Prior Year 3.3% 2.8%
SG&A Per Unit $27,430 $25,025
% Change -- Prior Year 4.6% 2.1%
Fiscal Year Total
--------------------
March 31, 2000
--------------------
Conventional Housing Revenues $3,686.8 100.0%
Cost of Sales (2,852.3) (77.3%)
--------- ---------
Gross Margin 834.5 22.7%
Selling, General &
Administrative (511.3) (13.9%)
--------- ---------
Operating Earnings $323.2 8.8%
========= =========
Units Closed 18,904
Unit Sales Price $191,568
% Change -- Prior Year 3.2%
Operating Earnings/Unit $17,098
% Change -- Prior Year 4.4%
Gross Margin Per Unit $44,144
% Change -- Prior Year 6.3%
SG&A Per Unit $27,047
% Change -- Prior Year 9.3%
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