Centex Reports Record Results for Third Quarter and Nine Months.DALLAS--(BUSINESS WIRE)--Jan. 27, 1997--Centex Corporation today announced results for the quarter ended Dec. 31, 1996, the third quarter of the company's 1997 fiscal year, and for the first nine months of fiscal 1997. Dallas-based 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 (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 ) has operations in Home Building, Investment Real Estate, 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. , and Contracting and Construction Services, and owns a 51 percent interest in Centex Construction Products, Inc. (NYSE: CXP CXP Common IFF Digital Transponder Program (US Navy shipboard and aircraft Identification Friend or Foe Transponder) ). For the quarter this year, Centex's 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 were $939,107,000, 19 percent higher than $790,149,000 for the same quarter last year. Net earnings for the current quarter were $27,463,000, a record for any third quarter in company history and an 81 percent gain over $15,156,000 for the same quarter last year. Earnings per share of $.93 for the quarter this year were 79 percent higher than $.52 for the same quarter a year ago. For the nine months ended Dec. 31, 1996, consolidated revenues were a record $2,833,121,000, up 24 percent over $2,277,945,000 for the same period in the prior year. Net earnings for the current nine months increased 106 percent to an all time high $77,522,000 from $37,580,000 for the same period last year. Earnings per share for the nine months this year rose 105 percent to a historical high of $2.64 from $1.29 for the first nine months of fiscal 1996. Centex said the strong financial results were due to significant gains in its Home Building earnings, improved Financial Services earnings, and the continuing positive impact of its new Investment Real Estate business. The company also cited stronger than expected results from its majority ownership interest in CXP. HOME BUILDING ------------- Centex's Home Building revenues for the current quarter were $566.7 million, 14 percent higher than $499.2 million for the same quarter last year. 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 Home Building reached $36.9 million, up 29 percent over $28.6 million for the same quarter a year ago. Home closings for the quarter this year rose in every region, totaling 3,226 units, a 9 percent improvement over 2,948 closings for the same quarter last year. Home sales (orders) declined 4 percent for the current quarter to 2,567 units from 2,678 units for the same quarter in fiscal 1996. The company noted that it currently is operating fewer neighborhoods than it did a year ago and that current quarter sales per neighborhood were slightly higher than last year. Centex said its average home sales price for the quarter ended Dec. 31, 1996 of $172,536 was 4 percent higher than $165,262 for the same quarter a year ago. The Home Building operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: per closed unit reached $11,425 for the quarter this year, 18 percent higher than $9,697 for the same quarter a year ago and 5 percent above the margin of $10,836 for the quarter ended Sept. 30, 1996. The Home Building operating margin for the current quarter reached 6.5 percent compared to 5.7 percent for the same quarter last year and 6.3 percent for the quarter ended Sept. 30, 1996. For the current nine months, Home Building revenues were a record $1.7 billion, 21 percent higher than $1.4 billion for the same period last year. Operating earnings from Home Building totaled an all time high $104.0 million for the nine months this year, 45 percent higher than $71.6 million for the same period in the prior fiscal year. Home closings for the nine months this year totaled 9,835 units, a 15 percent improvement over 8,522 units for the same period a year ago. Home orders for the nine months this year were 8,319, 11 percent less than 9,308 orders for the same period in fiscal 1996. Centex said its per unit Home Building margin for the nine months of $10,577 represented a 26 percent increase over the per unit margin for the same period last year. The Home Building operating margin for the nine month period this year was 6.1 percent vs. 5.1 percent for the same period a year ago. INVESTMENT REAL ESTATE ---------------------- As previously announced, in June June: see month. 1996 Centex's Home Building subsidiary completed a business combination transaction and reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. with Vista Properties, Inc. As a result, Centex created an Investment Real Estate operation through which all investment property transactions are being reported. For the quarter ended Dec. 31, 1996, Investment Real Estate reported operating earnings of $5.6 million. For the nine month period ended Dec. 31, 1996, operating earnings from Investment Real Estate totaled $12.8 million. FINANCIAL SERVICES ------------------ Revenues from Financial Services were $38.2 million for the quarter this year, 15 percent higher than revenues of $33.3 million for the same quarter in the prior fiscal year. Current quarter operating earnings from Financial Services were $7.2 million, a 38 percent increase over $5.2 million for the same quarter last year. Mortgage loan originations 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. for this year's quarter totaled 11,713, a 15 percent increase over 10,204 units for the same quarter last year. "Builder" originations (loans for Centex-built homes) were 2,275, an 8 percent increase over 2,108 originations for the same quarter last year. Spot (third party) originations totaled 9,438, 17 percent higher than 8,096 originations for the same quarter in the prior year. Centex said its per loan operating margin for the quarter this year was $615, a 20 percent increase from $512 for the same quarter in fiscal 1996. Total mortgage applications for the quarter were 14,297, a 47 percent increase over 9,754 applications for the same quarter last year. Builder applications declined 24 percent for the current quarter, but spot applications rose 66 percent, primarily due to Centex's recent expansion of its "B & C" (sub-prime) mortgage operation, Nova Credit Corporation. For the current nine month period, Financial Services revenues were $117.1 million, a 26 percent increase over $93.2 million for the same period in the prior year. Operating earnings from Financial Services reached $19.4 million for the current nine month period, a 59 percent increase over $12.2 million for the same period last year. Total mortgage loan originations for the nine month period this year reached 35,809, a 19 percent increase over 30,039 originations last year. Builder originations of 7,221 were 23 percent higher than 5,859 originations for the same period last year. Spot originations rose 18 percent to 28,588 for the current nine months from 24,180 originations for the same period in the prior year. The per loan operating margin for the current nine months was $543, up 34 percent from last year's per unit margin of $406. Total mortgage applications for the nine months totaled 41,776, a 29 percent increase over 32,426 applications for last year's nine months. Builder applications declined 13 percent for the nine months, but spot applications rose 40 percent for the current period over the same period a year ago, again due primarily to Centex's expansion of its B & C mortgage business. Centex said its per loan margins, although improved, were impacted by start-up Start-up The earliest stage of a new business venture. costs associated with the rapid expansion of the B and C loan operation, which has opened approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 30 offices during the past year. CONSTRUCTION PRODUCTS --------------------- As a result of Centex Construction Products' (CXP) repurchases of its own stock, Centex's ownership interest in CXP has increased to 51.2 percent from 49.0 percent. Accordingly, beginning with the June 30, 1996 quarter, CXP's financial results are reported as the Construction Products segment of Centex. CXP's results are consolidated with those of Centex and are reflected in Centex's revenues and operating earnings. Revenues from CXP were $59.1 million for the quarter this year. CXP's revenues for last year's quarter, which were not consolidated with Centex's revenues, were $55.4 million. For the quarter this year, CXP's total operating earnings minus minority interest resulted in pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern earnings of $8.8 million, net to Centex's ownership interest, a 17 percent increase over $7.5 million for the same quarter last year. For the current nine months, CXP's revenues totaled $185.7 million. CXP's revenues for the same period last year, which were not consolidated with Centex's results, were $177.0 million. For this year's nine months, CXP's total operating earnings minus minority interest resulted in pretax earnings of $26.6 million, net to Centex's ownership interest, 25 percent higher than $21.4 million for the same period a year ago. Centex said CXP's record results for the third quarter and the first nine months of fiscal 1997 were due to higher pricing in all of CXP's businesses, particularly 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 pricing, along with continuing strong demand for all of CXP's products. CONTRACTING AND CONSTRUCTION SERVICES ------------------------------------- Contracting and Construction Services revenues were $270.3 million for the quarter, a 5 percent increase over $257.6 million for the same quarter in fiscal 1996. The segment reported an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the quarter of $3.0 million compared to an operating loss of $2.0 million for the same quarter last year. For the current nine month period, Contracting and Construction Services had revenues of $819.3 million, 6 percent higher than $774.2 million for the same period last year. The segment had an operating loss of $2.7 million vs. an operating loss of $1.8 million for the same period a year ago. Centex said its Construction Group received approximately $334 million of new contracts during the quarter this year, twice the $166 million in new contracts received for the same quarter last year. New contracts for the current nine month period totaled approximately $831 million, 14 percent higher than the new contract total of $729 million 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 uncompleted construction contracts at Dec. 31, 1996 was $1.213 billion, slightly less than $1.236 billion for Dec. 31, 1995 but slightly more than the $1.150 billion reported at Sept. 30, 1996. Centex said that with the improved profit potential in its current backlog, the Construction Group should report positive operating results in the company's fourth quarter ending March 31, 1997. OTHER DEVELOPMENTS ------------------ Centex recently announced two initiative consistent with its strategic objective of serving more segments of the housing market. During the quarter, Centex and Cavco Industries, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CVCO), the largest 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 company in Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , jointly announced that the two entities have entered into a definitive merger agreement providing for Centex's acquisition of approximately 80 percent of Cavco's outstanding common stock at a price of $26.75 per share. The estimated transaction value is approximately $75 million, all cash, based on the acquisition of about 80 percent of the anticipated 3.56 million Cavco shares outstanding as of the merger's effective date. Following the merger, the remaining Cavco shares will be owned by Cavco founder Al Ghelfi and his affiliates. The acquisition of Cavco will give Centex an additional way to serve the growing affordable housing market by creating a strategic base for its expansion into the manufactured housing industry. The contemplated merger, the first combination in recent years of a manufactured housing company with a builder of conventional housing, is expected to be completed by the end of March 1997 subject to the approval of Cavco stockholders. Shortly after the end of the third quarter, Centex announced its first construction of multi-family rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. units in the Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. area since the 1960s. The newly formed Multi-Family Division of Centex's Investment Real Estate Group and Dallas-based Corrigan Cor·ri·gan , Mairead Born 1944. Irish peace activist. She shared the 1976 Nobel Peace Prize for work in Northern Ireland's peace movement. Properties, Inc., disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). their joint-venture development of a four-phase multi-family rental community to be built in Lewisville, Texas Lewisville is a city in Denton County and Dallas County, Texas (USA). As of the 2000 census the city had a total population of 77,737. With strong population growth continuing into the new millennium, the U.S. Census Bureau gives a 2006 population estimate of 94,589. , northwest For names and places containing the slightly longer word 'northwestern' (or variants), see . Northwest or north west is the ordinal direction halfway between north and west on a compass. It is the opposite of southeast. of Dallas. The community will be Centex's first multi-family development on the Vista Ridge ridge (rij) a linear projection or projecting structure; a crest. dental ridge any linear elevation on the crown of a tooth. dermal ridges cristae cutis. land included in its recent Vista Properties acquisition. In addition, Centex Homes is developing a single-family-home neighborhood in Vista Ridge. In a separate release issued today, Centex discusses progress made in its strategic plan to expand the scope of its B & C mortgage business. OUTLOOK ------- Centex said it expects its Home Building operation to report record earnings for fiscal 1997 and that results from Financial Services should show substantial improvement over fiscal 1996 results. CXP also is expected to have a record year. The results from Centex's new Investment Real Estate division should add significantly to earnings. As a result, Centex expects fiscal 1997's financial results to be the highest in company history. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Provision. This quarterly news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties including, but not limited to, increases in interest rates; business conditions; growth in the home building, financial services, contracting and construction services, and construction products industries and the economy in general; competitive factors; the cost of 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 . ; and all others detailed in the company's recent SEC reports on Forms 10-K and 10-Q. Centex's actual future results could differ, perhaps materially, from those discussed here. -0-
Centex Corporation and Subsidiaries
Summary of Consolidated Earnings
(unaudited)
(dollar amounts in thousands, except per share data)
Quarter Ended
December 31,
-------------------------------------
1996 1995 Change
----------- ----------- ------
Revenues $ 939,107 $ 790,149 19%
Earnings Before Income Taxes $ 42,494 $ 24,906 71%
Net Earnings $ 27,463 $ 15,156 81%
Earnings Per Share $ 0.93 $ 0.52 79%
Average Shares Outstanding 29,470,683 29,229,616 1%
Nine Months Ended
December 31,
-------------------------------------
1996 1995 Change
----------- ----------- ------
Revenues $ 2,833,121 $ 2,277,945 24%
Earnings Before Income Taxes $ 119,164 $ 61,994 92%
Net Earnings $ 77,522 $ 37,580 106%
Earnings Per Share $ 2.64 $ 1.29 105%
Average Shares Outstanding 29,318,786 29,050,846 1%
Centex Corporation and Subsidiaries
Revenues and Earnings by Lines of Business
(dollars in thousands)
Quarter Ended
December 31,
-------------------------------------
1996 1995 Change
----------- ----------- ------
Revenues
Home Building $ 566,691 $ 499,199 14%
60% 63%
Investment Real Estate 4,771 -- N.A.
1% -%
Financial Services 38,190 33,307 15%
4% 4%
Construction Products (A) 59,117 -- N.A.
6% -%
Contracting and Construction
Services 270,338 257,643 5%
29% 33%
----------- -----------
Total $ 939,107 $ 790,149 19%
100% 100%
=========== ===========
Operating Earnings
Home Building $ 36,857 $ 28,587 29%
58% 61%
Investment Real Estate 5,558 -- N.A.
9% -%
Financial Services 7,200 5,227 38%
11% 11%
Construction Products (A) 17,291 15,344 13%
28% 32%
Contracting and Construction
Services (3,049) (1,950) (56%)
(5%) (4%)
Other, Net (654) (29) (2,155%)
(1%) -%
----------- ----------
Total Operating Earnings 63,203 47,179 34%
100% 100%
Corporate General Expenses (4,285) (3,540)
Interest Expense (7,969) (10,908)
Minority Interest in
Construction Products (A) (8,455) (7,825)
----------- -----------
Earnings Before Income Taxes $ 42,494 $ 24,906 71%
=========== ===========
(A) As a result of CXP's recent repurchases of its own stock,
Centex's ownership interest in CXP has increased to 51.2 percent from
49 percent. Accordingly, beginning with the quarter ended June 30,
1996, CXP's financial results are consolidated with those of Centex
and are reflected in Centex's revenues and operating earnings. In
order to facilitate comparisons between years, CXP's operating
earnings and the related minority interest in CXP have been
reclassified to reflect the total amounts for the quarter ended
December 31, 1995. Had CXP's revenues been consolidated for the
quarter ended December 31, 1995, Centex's consolidated revenues for
that quarter would have increased by $55,429 to $845,578.
Centex Corporation and Subsidiaries
Revenues and Earnings by Lines of Business
(dollars in thousands)
Nine Months Ended
December 31,
-------------------------------------
1996 1995 Change
----------- ----------- ------
Revenues
Home Building $ 1,704,181 $ 1,410,522 21%
60% 62%
Investment Real Estate 6,781 -- N.A.
-% -%
Financial Services 117,113 93,243 26%
4% 4%
Construction Products (A) 185,713 -- N.A.
7% -%
Contracting and Construction
Services 819,333 774,180 6%
29% 34%
----------- -----------
Total $ 2,833,121 $ 2,277,945 24%
100% 100%
=========== ===========
Operating Earnings
Home Building $ 104,020 $ 71,619 45%
56% 57%
Investment Real Estate 12,788 -- N.A.
7% -%
Financial Services 19,437 12,199 59%
10% 10%
Construction Products (A) 52,541 43,587 21%
29% 35%
Contracting and Construction
Services (2,686) (1,795) (50%)
(1%) (2%)
Other, Net (1,516) (275) (451%)
(1%) -%
----------- ---------
Total Operating Earnings 184,584 125,335 47%
100% 100%
Corporate General Expenses (12,760) (10,910)
Interest Expense (26,760) (30,202)
Minority Interest in
Construction Products (A) (25,900) (22,229)
----------- -----------
Earnings Before Income Taxes $ 119,164 $ 61,994 92%
=========== ===========
(A) As a result of CXP's recent repurchases of its own stock,
Centex's ownership interest in CXP has increased to 51.2 percent from
49 percent. Accordingly, beginning with the quarter ended June 30,
1996, CXP's financial results are consolidated with those of Centex
and are reflected in Centex's revenues and operating earnings. In
order to facilitate comparisons between years, CXP's operating
earnings and the related minority interest in CXP have been
reclassified to reflect the total amounts for the nine months ended
December 31, 1995. Had CXP's revenues been consolidated for the nine
months ended December 31, 1995, Centex's consolidated revenues for
those nine months would have increased by $177,016 to $2,454,961.
Centex Corporation and Subsidiaries
Housing Activity by Geographic Area
Closings
-----------------------------------------
Three Months Ended Nine Months Ended
------------------ ------------------
12/31/96 12/31/95 12/31/96 12/31/95
-------- -------- -------- --------
West 720 568 2,164 1,680
Midwest 330 317 989 885
East 725 703 2,164 2,013
Southeast 578 563 1,765 1,549
Southwest 873 797 2,753 2,395
-------- -------- -------- --------
32264 2,948 9,835 8,522
======== ======== ======== ========
Sales (Orders) Backlog
-----------------------------------------
12/31/96 9/30/96 12/31/95
----------- ----------- -----------
West 804 827 695
Midwest 457 525 507
East 830 982 1,081
Southeast 838 983 1,079
Southwest 1,088 1,359 1,411
----------- ----------- ----------
4,017 4,676 4,773
=========== =========== ==========
Sales (Orders)
-----------------------------------------
Three Months Ended Nine Months Ended
------------------ ------------------
12/31/96 12/31/95 12/31/96 12/31/95
-------- -------- -------- --------
West 697 550 1,988 1,772
Midwest 262 258 794 950
East 573 593 1,873 2,176
Southeast 433 491 1,497 1,736
Southwest 602 786 2,167 2,674
-------- -------- -------- --------
2,567 2,678 8,319 9,308
======== ======== ======== ========
CONTACT: Centex Corporation Laurence Laurence is the surname or the given name of several people: Surname
chairman and chief executive officer Sheila Sheila is a common given name for a female, taken from the Gaelic name Síle/Sìle, which is believed to be a Gaelic form of Julia or Cecilia. Like "Cecil" or "Cecilia", the name means "Smart and Wise", from the Latin caecus. E. Gallagher Gallagher may refer to: People
vice president -- corporate communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion