Centex reports second quarter and six months results.DALLAS--(BUSINESS WIRE)--Oct. 24, 1995--Centex Corp. (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 results for the quarter ended Sept. 30, 1995, the second quarter of its 1996 fiscal year, and for the first six months of fiscal 1996. 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 noted that although its second quarter results are less than those for the same quarter last year, this year's Sept. 30 earnings were greatly improved over the company's results for the June June: see month. 30, 1995 quarter. Centex also said that significant increases in home sales and mortgage banking applications during the current Sept. 30 quarter should boost earnings as the year progresses. Centex, through its subsidiaries, is the nation's largest builder of single-family sin·gle-fam·i·ly adj. Relating to or being a dwelling designed for one family only: a single-family home; single-family occupancy. homes, ranks among the top 10 residential mortgage originators, and is a leading general building contractor building contractor n → contratista m/f de obras building contractor n → entrepreneur m (en bâtiment) building contractor . In addition, Centex owns a 49 percent interest in Centex Construction Products, Inc. (CXP CXP Common IFF Digital Transponder Program (US Navy shipboard and aircraft Identification Friend or Foe Transponder) ). Corporate revenues for the quarter this year were $786,846,000, 8 percent below $855,709,000 for the same quarter last year. Net earnings for the current quarter were $14,551,000, 14 percent less than $16,901,000 for the same quarter a year ago. Earnings per share for this year's quarter were $.50, 9 percent below $.55 for the same quarter in fiscal 1995. For the six months ended Sept. 30, 1995, corporate revenues totaled $1,487,796,000, 12 percent less than $1,688,226,000 for the same period last year. Earnings before income taxes were $37,088,000 for the period this year, 29 percent less than $52,538,000 for the same period last year. Total earnings before income taxes for the period last year, including the gain on the sale of 51 percent of CXP, were $111,866,000. Net earnings for the current six months were $22,424,000, 32 percent less than $32,804,000 for the same period last year. Total net earnings for the six months last year, including the gain on the CXP sale, were $70,299,000. Earnings per share for the current six months were $.77, 27 percent less than $1.05 last year. Total earnings per share for the six months last year, including the gain from the CXP sale, were $2.24. Earnings per share for both the quarter and the six months this year declined less than net earnings for the respective periods last year due to fewer average shares outstanding in the current periods. During the fiscal year ended March 31, 1995, Centex repurchased 3.74 million shares of its common stock, or about 12 percent of the shares outstanding at the beginning of its 1995 fiscal year. Centex said that its financial results for the first half of fiscal 1996 were affected by fewer home closings resulting from slower home sales caused by higher interest rates during fiscal 1995. HOME BUILDING Centex's Home Building revenues for the current quarter were $482.0 million, 13 percent less than $555.0 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 were $24.5 million, a 23 percent decline from the record $32.0 million reported for the same quarter last year. Home closings for the quarter totaled 2,922 units, 16 percent less than 3,469 units for the same quarter last year. Unit orders for the quarter rose in every region to reach 3,348 units, a 21 percent increase over 2,771 units for the same quarter last year. Centex said its average home sales price for the quarter this year was $163,143, 3 percent higher than $158,613 last year. Home Building margin per closed unit was $8,387, 9 percent below the per unit margin of $9,234 for the same quarter a year ago but 20 percent above the per unit margin for the June 30, 1995 quarter. The Home Building operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was 5.08 percent for the quarter this year, lower than 5.77 percent for the same quarter last year but higher than 4.32 percent for the June 30, 1995 quarter. For the six months, Home Building revenues were $911.3 million this year, a 16 percent decline from $1.09 billion for the same period last year. Operating earnings from Home Building were $43.0 million for the six months this year, 29 percent less than $60.3 million for the same period last year. Home closings for the six months were 5,574 units this year, 17 percent less than 6,702 units for the same period last year. Unit orders for the current six months of 6,630 units were 17 percent higher than orders of 5,644 units for the same period a year ago. 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 Sept. 30, 1995 was 5,043 units, 6 percent higher than 4,737 units at Sept. 30, 1994 and 9 percent above the backlog of 4,617 units reported at June 30, 1995. 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. Revenues from Financial Services were $34.7 million for the quarter this year, a 16 percent improvement over $29.9 million for the same quarter last year. Operating earnings from Financial Services were $5.0 million for the current quarter, up 214 percent from $1.6 million for the same quarter in the prior year. Mortgage originations for the quarter this year totaled 10,659, slightly higher than 10,322 for the same quarter last year but 16 percent above 9,176 originations reported for the quarter ended June 30, 1995. Originations for Centex-built homes of 2,015 were slightly less than 2,270 for the same quarter last year. Spot (third-party) originations of 8,644 were 7 percent higher than last year. Total mortgage applications for the quarter of 10,977 were 14 percent higher than 9,628 applications for the same quarter last year. For the six months, revenues from Financial Services were $59.9 million, down 11 percent from $67.5 million for the same period last year. Operating earnings from Financial Services were $7.0 million for the six months in both the current and prior years. Mortgage originations for the current six month period were 19,835, 8 percent less than 21,660 for the same period last year. Originations for Centex-built homes were 3,751 this year, 18 percent less than 4,552 for the same period a year ago. Third-party originations of 16,084 this year were down 6 percent from 17,108 originations for the same period last year. Total mortgage applications for the six months were 22,391, up 13 percent from 19,877 applications for the same period in the prior fiscal year, due to lower interest rates during much of the quarter. Centex noted that these increases occurred despite the fact that its Mortgage Banking operation has about 40 percent fewer offices than it had at its peak in the prior fiscal year. CTX Mortgage's operating results should continue to show improvement in comparison to the same periods a year ago. CONTRACTING AND CONSTRUCTION SERVICES Revenues from Contracting and Construction Services were $270.2 million for the quarter this year, approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. the same as in the prior year. The division reported operating earnings of $112,000 for the quarter this year vs. 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. of $545,000 for the same quarter last year. For the current six months, revenues from Contracting and Construction Services were $516.5 million, 3 percent less than revenues of $533.9 million for the same quarter in fiscal 1995. Operating earnings from the division were $155,000 compared to an operating loss of $1.2 million for the same period a year ago. Centex said its Construction Group received approximately $298 million of new contracts during the quarter, a 12 percent increase over $266 million of new work for the same quarter last year. New contracts for the current six months totaled $466 million, 31 percent less than $677 million for the same period a year ago. The backlog of uncompleted construction contracts at Sept. 30, 1995 was $1.375 billion, about the same as $1.379 billion at Sept. 30, 1994 and slightly higher than the backlog of $1.350 billion at June 30, 1995. Centex noted that its Contracting and Construction Services division continues to operate in a highly competitive market environment. CONSTRUCTION PRODUCTS For the current quarter, Centex Corporation's 49 percent "Equity in Earnings of Affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. (CXP)" was $7.9 million, a 38 percent increase over $5.8 million for the same quarter last year. For the current six months, Centex's 49 percent equity in CXP totaled $13.8 million, 46 percent higher than $9.5 million for the same period in the prior fiscal year. CXP benefitted from record Cement cement, binding material used in construction and engineering, often called hydraulic cement, typically made by heating a mixture of limestone and clay until it almost fuses and then grinding it to a fine powder. operating earnings which rose 39 percent in the current quarter and from improved operating results in both 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 Concrete and Aggregates businesses. Centex said it expects fiscal 1996 to be another record year for CXP. OTHER DEVELOPMENTS AND OUTLOOK During the quarter, Centex completed the acquisition of equity interests in Vista Properties for $115 million. The investment included approximately $85 million from Centex together with Vista's cash balance of $30 million. The acquisition consists of 3,500 acres of land in seven states. The land is zoned, planned or developed for single- and multi- multi- word element [L.], many. multi- pref. 1. Many; much; multiple: multiarticular. 2. More than one: multiparous. family residential, office, retail, industrial, and other commercial uses. The land will provide Centex with key residential sites in certain of its existing markets as well as commercial development opportunities. Centex said that recent interest rate drops have positively impacted both its Home Building and Financial Services businesses and that improving backlogs in these businesses, combined with continuing strong results from CXP, should generate earnings gains as the fiscal year progresses. -0-
Centex Corporation and Subsidiaries
Summary of Consolidated Earnings
(unaudited)
(dollar amounts in thousands, except per share data)
Quarter Ended
Sept. 30,
1995 1994 Change
----------- ----------- ------
Revenues $ 786,846 $ 855,709 (8%)
Earnings Before Income Taxes $ 24,015 $ 27,087 (11%) Net earnings $ 14,551 $ 16,901 (14%) Earnings Per Share $ 0.50 $ 0.55 (9%) Average Shares Outstanding 29,019,183 30,732,544 (6%)
Six Months Ended
Sept. 30,
-------------------------------------
1995 1994 Change
----------- ----------- ------
Revenues $ 1,487,796 $ 1,688,226 (12%)
Earnings Before Income Taxes
Before Gain on CXP's IPO $ 37,088 $ 52,538 (29%)
Gain on CXP's IPO -- 59,328
----------- -----------
Earnings Before
Income Taxes $ 37,088 $ 111,866
Net Earnings
Before Gain on CXP's IPO $ 22,424 $ 32,804 (32%)
Gain on CXP's IPO -- 37,495
----------- -----------
Net Earning $ 22,424 $ 70,299
Earnings Per Share
Before Gain on CXP's IPO $ 0.77 $ 1.05 (27%)
Gain on CXP's IPO -- 1.19
----------- -----------
Earnings Per Share $ 0.77 $ 2.24
Average Shares Outstanding 28,961,176 31,344,249 (8%)
Centex Corporation and Subsidiaries
Revenues and Earnings by Lines of Business
(dollars in thousands)
Quarter Ended
Sept. 30,
-------------------------------------
1995 1994 Change
----------- ----------- ------
Revenues
Home Building $ 482,017 $ 554,959 (13%)
61% 65%
Financial Services 34,669 29,889 16%
5% 3%
Contracting and Construction
Services 270,160 270,861 -%
34% 32%
----------- -----------
Total $ 786,846 $ 855,709 (8%)
100% 100%
=========== ===========
Operating Earnings
Home Building $ 24,507 $ 32,032 (23%)
66% 83%
Financial Services 4,970 1,581 214%
13% 4%
Contracting and Construction
Services 112 (545) 121%
-% (1%)
Other, Net (63) (493) 87%
-% (1%)
Equity In Earnings of
Affiliate (CXP) 7,928 5,762 38%
21% 15%
----------- ----------
Total Operating Earnings 37,454 38,337 (2%)
100% 100%
Corporate General Expenses (3,725) (3,643)
Interest Expense (9,714) (7,607)
----------- -----------
Earnings Before Income Taxes $ 24,015 $ 27,087 (11%)
=========== ===========
Centex Corporation and Subsidiaries
Revenues and Earnings by Lines of Business
(dollars in thousands)
Six Months Ended
Sept. 30,
-------------------------------------
1995 1994 Change
----------- ----------- ------
Revenues
Home Building $ 911,323 $ 1,086,855 (16%)
61% 64%
Financial Services 59,936 67,473 (11%)
4% 4%
Contracting and Construction
Services 516,537 533,898 (3%)
35% 32%
----------- -----------
Total $ 1,487,796 $ 1,688,226 (12%)
100% 100%
=========== ===========
Operating Earnings
Home Building $ 43,032 $ 60,264 (29%)
67% 81%
Financial Services 6,972 6,998 -%
11% 9%
Contracting and Construction
Services 155 (1,150) 113%
-% (2%)
Other, Net (246) (908) 73%
-% (1%)
Equity In Earnings of
Affiliate (CXP) 13,839 9,475 46%
22% 13%
----------- ----------
Total Operating Earnings 63,752 74,679 (15%)
100% 100%
Corporate General Expenses (7,370) (7,340)
Interest Expense (19,294) (14,801)
----------- -----------
Earnings Before Gain on CXP
Initial Public Offering and
Income Taxes 37,088 52,538 (29%)
Gain on CXP Initial Public
Offering - 59,328
Earnings Before Income
Taxes $ 37,088 $ 111,866 (67%)
=========== ===========
Centex Corporation and Subsidiaries
Housing Activity by Geographic Area
Closings
---------------------------------------------------
Three Months Ended Six Months Ended
------------------------ ------------------------
9/30/95 9/30/94 9/30/95 9/30/94
----------- ----------- ----------- ----------
West 606 679 1,112 1,289
Midwest 290 345 568 633
East 678 805 1,310 1,487
Southeast 506 664 986 1,314
Southwest 842 976 1,598 1,979
---------- ----------- ----------- --------
2,922 3,469 5,574 6,702
=========== =========== =========== =======
Sales (Orders) Backlog
---------------------------------------
9/30/95 6/30/95 9/30/94
----------- ------------ -----------
West 713 714 599
Midwest 566 477 504
East 1,191 1,084 1,103
Southeast 1,151 1,016 1,105
Southwest 1,422 1,326 1,426
----------- ----------- -----------
5,043 4,617 4,737
=========== =========== ===========
Sales (Orders)
-----------------------------------------------------
Three Months Ended Six Months Ended
------------------------ ------------------------
9/30/95 9/30/94 9/30/95 9/30/94
----------- ----------- ----------- ---------
West 605 538 1,222 1,132
Midwest 379 289 692 515
East 785 632 1,583 1,311
Southeast 641 522 1,245 1,032
Southwest 938 790 1,888 1,654
--------- ----------- ----------- -------
3,348 2,771 6,630 5,644
=========== =========== =========== ======
CONTACT: Centex Corp., 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. David W. Quinn Quinn or O'Quinn is a surname of Irish origin. It comes from the original Irish name Ó Cuinn, ie descendants of Conn. It means wisdom or chief. , 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
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