Clayton Homes Earns $31 Million for the Second Quarter.Business Editors KNOXVILLE Knoxville, city (1990 pop. 165,121), seat of Knox co., E Tenn., on the Tennessee River; inc. 1876. A port of entry, it is a trade and shipping center for a farm, bituminous-coal, and marble area. , Tenn.--(BUSINESS WIRE)--Jan. 9, 2003 For the second quarter ending December December: see month. 31, Clayton Clayton, city (1990 pop. 13,874), seat of St. Louis co., E central Mo., a suburb of St. Louis; inc. 1919. Developed in the 1960s, it has high-rise office buildings, hotels, and shopping centers; several major firms are headquartered there. Homes, Inc. (NYSE NYSE See: New York Stock Exchange :CMH CMH Center of Military History CMH Commission on Macroeconomics and Health CMH Chief of Military History CMH Children's Memorial Hospital CMH Ceramic Metal Halide (General Electric light source) CMH Congressional Medal of Honor ) reported net income of $31 million and earnings per share of 22 cents, down 8%. Last year's results included a non-recurring 2 cent per share servicing gain from a $900 million portfolio acquisition. "The Company's retail same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of increased 10% for the quarter, and total sales increased 3% in a negative industry environment," remarked President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Kevin KEVIN Keepers of the Eternal Vigilance of the Islamic Nation (fictional, from White Teeth by Zadie Smith) Clayton. "The operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. this winter will be challenging for manufacturing, similar to the March 2001 quarter, due to continued independent store closings and cannibalization can·ni·bal·ize v. can·ni·bal·ized, can·ni·bal·iz·ing, can·ni·bal·iz·es v.tr. 1. To remove serviceable parts from (damaged airplanes, for example) for use in the repair of other equipment of the same of new home production by the sale of foreclosures. Clayton Homes is well positioned with shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of $1.3 billion, and the Company's strong balance sheet reflects a debt to capital ratio of 7% with no goodwill." Clayton Homes will host a conference call at 2:00 p.m. eastern today. A simulcast Simulcast is a portmanteau of "simultaneous broadcast", and refers to programs or events broadcast across more than one medium, or more than one service on the same medium, at the same time. and replay will be available on the Company's website at www.clayton.net in the Investors' section. Clayton Homes, Inc. is a vertically integrated 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 with 20 manufacturing plants, 290 Company-owned stores, 622 independent retailers, 83 manufactured housing communities, and 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. operations that provide mortgage services for 165,000 customers and insurance protection for 100,000 families.
SUMMARY RESULTS
(in thousands
except per Three Months Ended Six Months Ended
share data) December 31, December 31,
2002 2001 Change 2002 2001 Change
-------- -------- ------ -------- -------- ------
Revenues $299,952 $296,820 1% $606,886 $593,190 2%
Earnings before
taxes 48,589 53,408 -9% 95,610 95,528 -
Net Income $30,589 $33,708 -9% $60,210 $60,228 -
Average shares
outstanding
(diluted) 136,404 138,438 -1% 136,816 138,785 -1%
Earnings per
share (diluted) $.22 $.24 -8% $.44 $.43 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. 3 Mos. ENDED Sept. 30 3 Mos. ENDED Dec. 31
------------------------ -------------------------
2002 2001 % +/- 2002 2001 % +/-
------------------------ -------------------------
(Unaudited - in $
thousands except
per share data)
SALES:
Manufacturing 126,257 131,407 -3.9% 127,032 134,559 -5.6%
Less
Intercompany (77,622) (70,495) 10.1% (82,528) (79,427) 3.9%
------------------------ -------------------------
Net Manufacturing 48,635 60,912 -20.2% 44,504 55,132 -19.3%
Retail - New 148,603 147,494 0.8% 153,382 134,738 13.8%
- Used 9,543 11,342 -15.9% 6,698 9,787 -31.6%
------------------------ -------------------------
Total Retail 158,146 158,836 -0.4% 160,080 144,525 10.8%
Communities - New 8,952 5,699 57.1% 7,060 6,040 16.9%
- Used 5,488 2,056 166.9% 3,280 2,056 59.5%
------------------------ -------------------------
Total Communities 14,440 7,755 86.2% 10,340 8,096 27.7%
----------------------------------------------------------------------
Sales 221,221 227,503 -2.8% 214,924 207,753 3.5%
Financial Services 67,679 51,326 31.9% 66,721 70,631 -5.5%
Rental and Other
Income 18,034 17,541 2.8% 18,307 18,436 -0.7%
----------------------------------------------------------------------
OPERATING REVENUE 306,934 296,370 3.6% 299,952 296,820 1.1%
Cost Of Sales 144,733 149,099 -2.9% 140,726 135,425 3.9%
Selling, General &
Administrative 101,910 96,162 6.0% 102,864 101,238 1.6%
Financial Services
Interest 58 127 -54.3% 32 109 -70.6%
Provision for Credit
Losses 9,070 3,860 135.0% 6,830 6,640 2.8%
----------------------------------------------------------------------
OPERATING EXPENSES 255,771 249,248 2.6% 250,452 243,412 2.9%
----------------------------------------------------------------------
OPERATING INCOME 51,163 47,122 8.6% 49,500 53,408 -7.3%
Interest Income
(expense), net /
other (4,142) (5,002) 17.2% (911) 0 -100.0%
----------------------------------------------------------------------
Income Before Income
Taxes 47,021 42,120 11.6% 48,589 53,408 -9.0%
Tax Rate 37.0% 37.0% 37.0% 36.9%
Provision for Income
Taxes 17,400 15,600 11.5% 18,000 19,700 -8.6%
----------------------------------------------------------------------
NET INCOME 29,621 26,520 11.7% 30,589 33,708 -9.3%
======================================================================
EARNINGS PER SHARE
Basic $0.22 $0.19 15.8% $0.22 $0.25 -12.0%
Diluted $0.22 $0.19 15.8% $0.22 $0.24 -8.3%
AVERAGE SHARES
OUTSTANDING
Basic 136,623 138,030 -1.0% 135,994 137,391 -1.0%
Diluted 137,217 139,129 -1.4% 136,404 138,438 -1.5%
----------------------------------------------------------------------
6 Mos. ENDED Dec. 31
--------------------------
2002 2001 % +/-
--------------------------
(Unaudited - in $
thousands except
per share data)
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
======================================================================
EARNINGS PER SHARE
Basic $0.44 $0.44
Diluted $0.44 $0.43 2.3%
AVERAGE SHARES OUTSTANDING
Basic 136,308 137,711 -1.0%
Diluted 136,816 138,785 -1.4%
----------------------------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS
(in $ thousands) (unaudited)
December 31, June 30,
2002 2002
----------------------------------------------------------------------
Assets
Cash & cash equivalents 90,708 83,729
Receivables, net 902,148 978,585
Inventories 202,655 189,976
Property, plant, & equipment, net 309,463 310,764
Other assets 285,864 265,349
----------------------------------------------------------------------
TOTAL ASSETS 1,790,838 1,828,403
======================================================================
Liabilities & Shareholders' Equity
Accounts payable & accrued liabilities 93,607 139,308
Debt obligations 91,359 92,912
Other liabilities 307,396 334,226
Shareholders' equity 1,298,476 1,261,957
----------------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 1,790,838 1,828,403
======================================================================
OPERATING DATA
CLAYTON HOMES, INC. 3 Mos. ENDED Sept. 30 3 Mos. ENDED Dec. 31
------------------------ ------------------------
2002 2001 % +/- 2002 2001 % +/-
----------------------------------------------------------------------
UNIT SALES:
MANUFACTURING GROUP
Single-section 2,103 2,331 -9.8% 2,014 2,346 -14.2%
Multi-section 2,706 2,776 -2.5% 2,593 2,795 -7.2%
----------------------------------------------------------------------
Total shipped 4,809 5,107 -5.8% 4,607 5,141 -10.4%
Less Intercompany (2,875) (2,767) 3.9% (2,972) (3,028) -1.8%
----------------------------------------------------------------------
NET MANUFACTURING 1,934 2,340 -17.4% 1,635 2,113 -22.6%
RETAIL GROUP
New Single-section 1,401 1,549 -9.6% 1,458 1,390 4.9%
New Multi-section 1,748 1,768 -1.1% 1,770 1,621 9.2%
----------------------------------------------------------------------
TOTAL NEW 3,149 3,317 -5.1% 3,228 3,011 7.2%
USED 591 794 -25.6% 484 751 -35.6%
----------------------------------------------------------------------
TOTAL RETAIL 3,740 4,111 -9.0% 3,712 3,762 -1.3%
COMMUNITIES GROUP
New 225 152 48.0% 166 156 6.4%
Used 193 81 138.3% 117 89 31.5%
----------------------------------------------------------------------
TOTAL COMMUNITIES 418 233 79.4% 283 245 15.5%
----------------------------------------------------------------------
TOTAL HOMES SOLD 6,092 6,684 -8.9% 5,630 6,120 -8.0%
======================================================================
NUMBER (actual):
PLANTS 20 20 20 20
RETAILERS - Independent 629 643 -2.2% 622 578 7.6%
RETAILERS - Company-
owned 290 296 -2.0% 290 292 -0.7%
COMMUNITIES 83 81 2.5% 83 81 2.5%
Sites owned 21,600 21,126 2.2% 21,632 21,129 2.4%
Sites rented 16,211 15,689 3.3% 16,245 15,665 3.7%
Percent occupied 75.1% 74.3% 75.1% 74.1%
======================================================================
- AVERAGES -
======================================================================
NUMBER (average):
PLANTS 20 20 20 20
RETAILERS -
Independent 615 639 -3.7% 626 611 2.5%
RETAILERS - Company-
owned 289 297 -2.7% 290 294 -1.4%
COMMUNITIES 83 81 1.9% 83 81 2.5%
Sites owned 21,491 21,124 1.7% 21,616 21,128 2.3%
Sites rented 16,184 15,713 3.0% 16,228 15,677 3.5%
Percent occupied 75.3% 74.4% 75.1% 74.2%
======================================================================
AVERAGE UNIT PRICE:
WHOLESALE - ALL $26,254 $25,731 2.0% $27,574 $26,174 5.3%
WHOLESALE -
INDEPENDENT ONLY 25,148 26,031 -3.4% 27,220 26,092 4.3%
RETAIL - New 47,191 44,466 6.1% 47,516 44,749 6.2%
RETAIL - Used 16,148 14,284 13.0% 13,838 13,032 6.2%
COMMUNITIES - New 39,785 37,496 6.1% 42,530 38,715 9.9%
TOTAL RETAIL AND
COMMUNITIES $41,507 $38,350 8.2% $42,658 $38,088 12.0%
SALES $ (thousands)
PER-
PLANT $6,313 $6,570 -3.9% $6,352 $6,728 -5.6%
INDEPENDENT
RETAILER 79 95 -17.1% 71 90 -21.2%
COMPANY-OWNED SALES
CENTER 548 536 2.3% 552 492 12.3%
COMMUNITY $175 $96 82.8% $125 $100 24.6%
======================================================================
TOTAL HOMES SOLD BY
COMPANY-OWNED 13.0 13.9 -6.5% 12.8 12.8
======================================================================
NEW FLOORS SOLD BY
COMPANY-OWNED 17.0 17.2 -1.0% 17.2 15.8 9.4%
======================================================================
ORDER BACKLOGS
(thousands) $32,000 $43,300 -26.1% $17,400 $40,100 -56.6%
======================================================================
PAST DUE
Originated 3.12% 3.71% 3.43% 3.37%
All (includes
purchased loans) 3.73% 4.14% 3.89% 4.23%
======================================================================
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
RETAILERS - Independent
RETAILERS - Company-owned
COMMUNITIES
Sites owned
Sites rented
Percent occupied
======================================================================
- 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)
======================================================================
PAST DUE
Originated
All (includes purchased loans)
======================================================================
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