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Centex Reports Record Third Quarter Results; Earnings From Continuing Operations Grow 35% DALLAS, Jan. 25 /PRNewswire-FirstCall/ -- Centex Corporation (NYSE:CTX) today reported the highest revenues, operating earnings and earnings per diluted share for any third quarter in its history. Highlights of the quarter ended December 31, 2004 (compared to last year's third quarter): * Earnings from continuing operations grew 35%; Net earnings up 28% to $253.8 million * Earnings per diluted share from continuing operations grew 34% to $1.91 * Domestic home building operating earnings increased 39%; operating margin was 15.5%, up 240 basis points * Domestic home sales (orders) rose 12%; backlog rose 18% to 17,501 units "This quarter's outstanding results are a great demonstration of the Centex growth model. Our focus on neighborhood growth coupled with continuous improvement produced strong sales and margin expansion at Centex Homes," commented Tim Eller, Centex Corporation chairman and CEO. "It is our view Centex will continue to achieve strong results in fiscal 2006 even in an environment of incrementally higher mortgage rates." "In addition to our home building operation, our other businesses performed at very high levels. The combined efforts of our two financial services operations contributed positively to our overall shareholder value creation strategy," said Eller. "As we look forward to the rest of this year and into fiscal 2006, I expect our business segments to have a growing positive impact." HOME BUILDING Domestic Operating earnings from Centex Homes were $347.1 million for the third quarter this year, 39% higher than $250.2 million for the same quarter a year ago. Revenues were $2.24 billion, 17% higher than $1.91 billion reported for the same quarter last year. The 39% increase in operating earnings was achieved on an 8% increase in closings to 8,047 homes, as well as an improvement in operating margin to 15.5% from 13.1% a year ago. The operating margin improvement was due primarily to an increase in the average selling price of homes delivered and ongoing process improvement initiatives. Operating earnings from Centex Homes for the nine months ended December 31, 2004 were $853.9 million, 39% higher than the $612.7 million for the same period last year. Revenues for the nine months were $6.3 billion, 22% higher than revenues of $5.1 billion for the same period in fiscal 2004. International London-based Fairclough Homes, the international operation of Centex Homes, closed 410 homes during the third quarter of fiscal 2005 versus 422 units for the same quarter last year. Operating earnings for the quarter were $16.9 million, a 55% increase over last year's third quarter. This increase reflects an improved pricing environment and higher-margin neighborhoods coming on line. Operating margin increased 400 basis points to 13.1%. FINANCIAL SERVICES Operating earnings from Financial Services for the third quarter this year were $46.0 million, a 5% increase from the same quarter last year. Revenues from this segment were $266.7 million for the third quarter this year, 12% above $238.2 million for the same quarter last year. Financial Services operating earnings for the nine-month period this year were $156.8 million, a decrease of 16% compared to $185.8 million for the same period last year. Financial Services revenues were $817.9 million for the nine months, 3% above last year's revenues for the same period. CTX Mortgage Company Operating earnings from CTX Mortgage Company totaled $21.0 million for this year's third quarter versus $26.8 million for the same quarter a year ago. Originations from Centex Homes' closings increased 6% while retail originations fell 15%. Refinanced mortgages accounted for 21% of originations for the quarter this year compared to 23% for the same quarter last year. CTX Mortgage provided mortgage loans to 73% of Centex Homes' buyers for the third quarter this year. Operating earnings from CTX Mortgage were $74.7 million for the nine-month period this year compared to $138.8 million for the same period a year ago. Centex Home Equity Company Centex Home Equity Company (CHEC) reported operating earnings of $25.0 million for the third quarter this fiscal year compared to operating earnings of $16.8 million for the same quarter in fiscal 2004. For the first nine months of fiscal 2005, CHEC reported operating earnings of $82.1 million, a 75% increase over $46.9 million for the same period in fiscal 2004. CHEC's loan servicing portfolio, on which it earns an interest margin, has reached $7.7 billion, growing 27% versus the same period last year. CONSTRUCTION SERVICES Operating earnings from Construction Services were $6.4 million for the third quarter this fiscal year, versus $3.6 million for the same quarter in fiscal 2004. The operating margin was 1.4% for this fiscal year's third quarter, up 55 basis points from last year's third quarter. Revenues from this segment were $445.5 million for the quarter this year, up 10% versus a year ago. The backlog of construction contracts at December 31, 2004 was $2.0 billion, up 14% from the same date last year. OUTLOOK Based on the strength of the home building operations and its record backlog, as well as the execution of the company's growth strategies in each of its other business segments, Centex is updating its fiscal 2005 earnings guidance to a range of $7.30 to $7.50 per diluted share. Achieving this guidance would represent 21% to 25% growth versus last year's record results. Additionally, based on its current momentum and strong sales trends, the company is reiterating its earnings per diluted share guidance of $8.75 to $9.25 for fiscal 2006. Through its subsidiaries, Centex ranks among the nation's leading companies in the Home Building, Financial Services, Construction Services and Home Services industries. Centex's senior management will host a conference call to discuss the third quarter financial results at 10 a.m. Eastern Time (9 a.m. Central Time) on Wednesday, January 26. The conference call, accompanied by a slide presentation, will be webcast simultaneously on the Centex Web site at http://www.centex.com/ . A replay of the call, as well as the presentation, will be archived on that site for one year. Questions can be e-mailed to . Forward-Looking Statements. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when Centex is discussing its beliefs, estimates or expectations. These statements are not historical facts or guarantees of future performance but instead represent only Centex's belief at the time the statements were made regarding future events, which are subject to significant risks, uncertainties and other factors, many of which are outside of Centex's control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. With respect to forward-looking statements relating to the business, operations, assets, liabilities, financial condition or results of operations of Centex, the risks and uncertainties to which these statements are subject include the following: general economic conditions and interest rates; the cyclical and seasonal nature of our businesses; adverse weather conditions; changes in property taxes and energy costs; changes in federal income tax laws and federal mortgage financing programs; governmental regulations; changes in governmental and public policy; changes in economic conditions specific to any one or more of our markets and businesses; competition; availability of land and raw materials; and unexpected operational difficulties. For example, increases in interest rates or decreases in demand for housing on a national or regional basis or increases in the cost or reductions in the supply of suitable land for development, or lumber or other building materials or labor, could affect the revenues or operating earnings of our homebuilding operations. Similarly, increases in interest rates could adversely affect demand for some of the mortgage loans offered by our mortgage finance operations. Finally, changes in national and regional economic conditions and levels of infrastructure and construction spending could adversely affect the results of operations of our construction services operations. These and other risks and uncertainties are described in greater detail in Centex's most recent Annual Report on Form 10-K for the fiscal year ended March 31, 2004 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2004 (including under the captions "Forward- Looking Statements" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), which are on file with the SEC and may be obtained free of charge through the website maintained by the SEC at http://www.sec.gov/ . All forward-looking statements made are made as of the date hereof, and the risk that actual results will differ materially from expectations will increase with the passage of time. Centex undertakes no duty to update any forward-looking statement to reflect future events or changes in Centex's expectations. NOTE ATTACHMENTS: (1) Revenues and Earnings by Lines of Business (2) Condensed Consolidated Balance Sheets (3) Condensed Consolidated Cash Flows (4) Supplemental Domestic Home Building Data (5) Domestic Housing Activity by Geographic Area (6) Domestic Housing Activity Dollar Values by Geographic Area (7) Supplemental International Home Building Data (8) Supplemental Financial Services Data Attachment 1 Centex Corporation and Subsidiaries Revenues and Earnings by Lines of Business (dollars in thousands, except per share data) Quarter Ended December 31, (unaudited) 2004 2003 (D) Change Revenues Home Building (A) $2,368,379 $1,906,305 24% Financial Services 266,701 238,231 12% Construction Services 445,468 404,227 10% Other 38,075 21,094 81% Total $3,118,623 $2,569,857 21% Operating Earnings Home Building (A) $ 364,002 $ 260,642 40% Financial Services 46,003 43,651 5% Construction Services 6,398 3,593 78% Other 6,338 4,370 45% Total Operating Earnings 422,741 312,256 35% Corporate General Expenses (23,137) (29,891) Interest Expense (5,718) (3,456) Earnings from Continuing Operations Before Income Taxes 393,886 278,909 41% Income Taxes (140,115) (91,039) Earnings from Continuing Operations 253,771 187,870 35% Earnings from Discontinued Operations, net (B) --- 10,800 Cumulative Effect of Accounting Change (C) --- --- Net Earnings $ 253,771 $ 198,670 28% Earnings Per Share - Basic Earnings per Share - Continuing Operations $ 2.02 $ 1.51 34% Earnings per Share - Discontinued Operations --- 0.09 Earnings per Share - Cumulative Effect --- --- Earnings Per Share - Basic $ 2.02 $ 1.60 26% Earnings Per Share - Diluted Earnings per Share - Continuing Operations $ 1.91 $ 1.43 34% Earnings per Share - Discontinued Operations --- 0.09 Earnings per Share - Cumulative Effect --- --- Earnings Per Share - Diluted $ 1.91 $ 1.52 26% Average Shares Outstanding: Basic 125,593,379 124,076,292 1% Diluted 132,547,190 130,659,958 1% Attachment 1 (Continued) Centex Corporation and Subsidiaries Revenues and Earnings by Lines of Business (dollars in thousands, except per share data) Nine Months Ended December 31, (unaudited) 2004 2003 (D) Change Revenues Home Building (A) $6,597,952 $5,119,937 29% Financial Services 817,945 795,642 3% Construction Services 1,331,913 1,166,611 14% Other 121,792 88,622 37% Total $8,869,602 $7,170,812 24% Operating Earnings Home Building (A) $ 891,474 $ 634,247 41% Financial Services 156,829 185,752 (16%) Construction Services 16,378 12,712 29% Other 11,378 27,862 (59%) Total Operating Earnings 1,076,059 860,573 25% Corporate General Expenses (61,741) (70,982) Interest Expense (16,024) (35,370) Earnings from Continuing Operations Before Income Taxes 998,294 754,221 32% Income Taxes (356,678) (245,079) Earnings from Continuing Operations 641,616 509,142 26% Earnings from Discontinued Operations, net (B) --- 31,707 Cumulative Effect of Accounting Change (C) --- (13,260) Net Earnings $ 641,616 $ 527,589 22% Earnings Per Share - Basic Earnings per Share - Continuing Operations $ 5.16 $ 4.13 25% Earnings per Share - Discontinued Operations --- 0.26 Earnings per Share - Cumulative Effect --- (0.11) Earnings Per Share - Basic $ 5.16 $ 4.28 21% Earnings Per Share - Diluted Earnings per Share - Continuing Operations $ 4.87 $ 3.95 23% Earnings per Share - Discontinued Operations --- 0.25 Earnings per Share - Cumulative Effect --- (0.11) Earnings Per Share - Diluted $ 4.87 $ 4.09 19% Average Shares Outstanding: Basic 124,404,141 123,334,548 1% Diluted 131,702,753 129,020,466 2% (A) 3333 Holding Corporation and Centex Development Company, L.P. were consolidated into Centex Corporation on February 29, 2004. As a result, beginning March 1, 2004, International Home Building is fully consolidated as a component of Home Building. Centex's equity in the earnings of International Home Building prior to March 1, 2004 have been reclassified from Investment Real Estate(now in Other) to Home Building. See Attachment 7 for additional International Home Building information. (B) Includes the operations spun-off in the Centex Construction Products (now known as Eagle Materials Inc.) and Cavco transactions and other discontinued manufactured housing operations. (C) Represents the cumulative effect of change in accounting resulting from the consolidation of HSF-I effective July 1, 2003. (D) Certain prior year items have been reclassified to conform to current period classifications. Attachment 2 Centex Corporation and Subsidiaries Condensed Consolidated Balance Sheets (Dollars in millions) (unaudited) Centex Corporation Centex Financial and Subsidiaries Corporation* Services Dec. March Dec. March Dec. March 31, 31, 31, 31, 31, 31, 2004 2004 2004 2004 2004 2004 Assets Cash - Unrestricted $50 $179 $37 $161 $13 $18 Restricted 446 310 45 50 401 260 Receivables - Residential Mortgage Loans Held for Investment 7,723 6,498 --- --- 7,723 6,498 Residential Mortgage Loans Held for Sale 1,586 1,820 --- --- 1,586 1,820 Other Receivables 715 669 514 491 201 178 Inventories - Homebuilding 6,975 5,105 6,975 5,105 --- --- Land Held Under Option Agreements not Owned 471 362 471 362 --- --- Other 34 94 28 85 6 9 Investments 169 140 742 672 --- --- Property and Equipment, net 159 156 115 115 44 41 Goodwill 252 255 240 238 12 17 Deferred Charges and Other Assets 423 481 215 239 208 242 $19,003 $16,069 $9,382 $7,518 $10,194 $9,083 Liabilities and Stockholders' Equity Accounts Payable and Accrued Liabilities $2,019 $1,963 $1,843 $1,715 $162 $264 Debt Non-Financial Services 3,228 2,418 3,228 2,418 --- --- Financial Services 9,443 8,302 --- --- 9,443 8,302 Minority Stockholders' Interest 474 336 472 335 2 1 Stockholders' Equity 3,839 3,050 3,839 3,050 587 516 $19,003 $16,069 $9,382 $7,518 $10,194 $9,083 * In the supplemental data presented above, "Centex Corporation" represents the consolidation of all subsidiaries other than those included in Financial Services. Transactions between Centex Corporation and Financial Services have been eliminated from the Centex Corporation and Subsidiaries balance sheets. We believe that separate disclosure of the consolidating information is useful because: the Financial Services subsidiaries operate in a distinctly different financial environment that generally requires significantly less equity to support their higher debt levels compared to the operations of our other subsidiaries; the Financial Services subsidiaries have structured their financing programs substantially on a stand-alone basis; and Centex Corporation has limited obligations with respect to the indebtedness of its Financial Services subsidiaries. Management uses this information in its financial and strategic planning. Attachment 3 Centex Corporation and Subsidiaries Condensed Consolidated Cash Flows (Dollars in millions) (unaudited) Centex Corporation Centex Financial and Subsidiaries Corporation* Services For the Nine For the Nine For the Nine Months Ended Months Ended Months Ended December 31, December 31, December 31, 2004 2003 2004 2003 2004 2003 Cash Flows - Operating Activities Net Earnings $642 $528 $642 $528 $98 $103 Adjustments - Depreciation and Amortization 80 78 66 65 14 13 Other Noncash Adjustments 52 13 (87) (85) 80 59 Decrease in Loans Held for Sale 234 1,113 --- --- 234 1,113 (Increase) Decrease in Inventories (1,776) (1,272) (1,779) (1,271) 3 (1) Other Operating Activities (65) 17 148 91 (231) (76) (833) 477 (1,010) (672) 198 1,211 Cash Flows - Investing Activities Increase in Loans Held for Investment (1,297) (1,494) --- --- (1,297) (1,494) Other Investing Activities 14 25 40 21 (8) 7 (1,283) (1,469) 40 21 (1,305) (1,487) Cash Flows - Financing Activities Increase (Decrease) in Short-Term Debt, net 1,501 14 122 85 1,379 (71) Issuance of Long-Term Debt, net 443 626 681 217 (238) 409 Other Financing Activities 42 (52) 42 (52) (39) (65) 1,986 588 845 250 1,102 273 Effect of Exchange Rate on Cash 1 --- 1 --- --- --- Net Decrease in Cash and Cash Equivalents (129) (404) (124) (401) (5) (3) Cash and Cash Equivalents at Beginning of Period 179 456 161 441 18 15 Cash and Cash Equivalents at End of Period $50 $52 $37 $40 $13 $12 * In the supplemental data presented above, "Centex Corporation" represents the consolidation of all subsidiaries other than those included in Financial Services. Transactions between Centex Corporation and Financial Services have been eliminated from the Centex Corporation and Subsidiaries cash flows. We believe that separate disclosure of the consolidating information is useful because: the Financial Services subsidiaries operate in a distinctly different financial environment that generally requires significantly less equity to support their higher debt levels compared to the operations of our other subsidiaries; the Financial Services subsidiaries have structured their financing programs substantially on a stand-alone basis; and Centex Corporation has limited obligations with respect to the indebtedness of its Financial Services subsidiaries. Management uses this information in its financial and strategic planning. Attachment 4 Centex Corporation and Subsidiaries Supplemental Home Building Data - Domestic Operations (unaudited) (dollars in millions, except per unit data) Quarter Ended December 31, 2004 2003 HOME BUILDING - DOMESTIC Revenues - Housing $2,172.5 100.0% $1,832.4 100.0% Cost of Sales - Housing (1,554.8) (71.6%) (1,340.9) (73.2%) Gross Margin - Housing 617.7 28.4% 491.5 26.8% Revenues - Land Sales & Other 66.9 73.9 Cost of Sales - Land Sales & Other (54.4) (70.0) Gross Margin - Land Sales & Other 12.5 3.9 Total Gross Margin 630.2 28.1% 495.4 26.0% Selling, General & Administrative (326.5) (14.6%) (266.1) (14.0%) Other Income 43.4 2.0% 20.9 1.1% Operating Earnings $347.1 15.5% $250.2 13.1% Units Closed 8,047 7,468 Average Unit Sales Price $269,972 $245,370 % Change 10.0% 11.6% Operating Earnings per Unit $43,143 $33,505 % Change 28.8% 37.1% Average Neighborhoods 598 560 % Change 6.8% 6.1% Attachment 4 (Continued) Centex Corporation and Subsidiaries Supplemental Home Building Data - Domestic Operations (unaudited) (dollars in millions, except per unit data) Nine Months Ended December 31, 2004 2003 HOME BUILDING - DOMESTIC Revenues - Housing $6,097.9 100.0% $4,997.6 100.0% Cost of Sales - Housing (4,407.9) (72.3%) (3,672.8) (73.5%) Gross Margin - Housing 1,690.0 27.7% 1,324.8 26.5% Revenues - Land Sales & Other 172.2 122.3 Cost of Sales - Land Sales & Other (154.1) (125.2) Gross Margin - Land Sales & Other 18.1 (2.9) Total Gross Margin 1,708.1 27.2% 1,321.9 25.8% Selling, General & Administrative (908.7) (14.5%) (732.6) (14.3%) Other Income 54.5 0.9% 23.4 0.5% Operating Earnings $853.9 13.6% $612.7 12.0% Units Closed 23,261 20,723 Average Unit Sales Price $262,150 $241,162 % Change 8.7% 10.8% Operating Earnings per Unit $36,711 $29,564 % Change 24.2% 32.5% Average Neighborhoods 581 558 % Change 4.1% 10.1% LOT POSITION - DOMESTIC As of December 31, 2004 2003 Change Lot Owned and Controlled: Lots Owned 93,919 71,793 30.8% Lots Controlled 164,002 100,872 62.6% Total 257,921 172,665 49.4% Attachment 5 Centex Corporation and Subsidiaries Supplemental Home Building Data - Domestic Operations Housing Activity (Units) by Geographic Area Closings Quarter Ended Nine Months Ended December 31, December 31, 2004 2003 Change 2004 2003 Change Mid-Atlantic 1,364 1,337 2% 3,984 3,699 8% Southeast 1,282 1,281 ---% 3,887 3,708 5% Midwest 1,683 1,441 17% 4,891 3,994 22% Southwest 2,234 2,109 6% 6,342 5,635 13% West Coast 1,484 1,300 14% 4,157 3,687 13% 8,047 7,468 8% 23,261 20,723 12% Sales (Orders) Backlog As of December 31, 2004 2003 Change Mid-Atlantic 3,417 2,571 33% Southeast 4,992 3,522 42% Midwest 2,966 3,118 (5%) Southwest 3,141 3,178 (1%) West Coast 2,985 2,386 25% 17,501 14,775 18% Sales (Orders) Quarter Ended Nine Months Ended December 31, December 31, 2004 2003 Change 2004 2003 Change Mid-Atlantic 1,465 1,314 11% 4,600 4,122 12% Southeast 1,582 1,357 17% 5,172 4,517 15% Midwest 1,411 1,153 22% 4,465 4,192 7% Southwest 2,016 1,908 6% 6,614 6,555 1% West Coast 1,347 1,267 6% 4,497 4,062 11% 7,821 6,999 12% 25,348 23,448 8% Attachment 6 Centex Corporation and Subsidiaries Supplemental Home Building Data - Domestic Operations Housing Activity (Values) by Geographic Area Housing Revenues - Closings (dollars in millions) Quarter Ended Nine Months Ended December 31, December 31, 2004 2003 Change 2004 2003 Change Mid-Atlantic $392.4 $374.7 5% $1,136.6 $1,009.0 13% Southeast 336.1 291.9 15% 973.7 819.7 19% Midwest 357.1 296.5 20% 1,034.4 831.1 24% Southwest 379.0 328.4 15% 1,044.1 868.1 20% West Coast 707.9 540.9 31% 1,909.1 1,469.7 30% $2,172.5 $1,832.4 19% $6,097.9 $4,997.6 22% Sales (Orders) Backlog Value (dollars in millions) As of December 31, 2004 2003 Change Mid-Atlantic $1,132.9 $802.6 41% Southeast 1,472.0 947.7 55% Midwest 679.4 624.4 9% Southwest 671.6 497.2 35% West Coast 1,578.3 955.1 65% $5,534.2 $3,827.0 45% Attachment 7 Centex Corporation and Subsidiaries Supplemental Home Building Data - International Operations (unaudited) (dollars in millions, except per unit data) Quarter Ended December 31, 2004 2003 HOME BUILDING - INTERNATIONAL Revenues - Housing $128.3 100.0% $114.8 100.0% Cost of Sales - Housing (91.9) (71.6%) (91.2) (79.4%) Gross Margin - Housing 36.4 28.4% 23.6 20.6% Revenues - Land Sales & Other 0.7 5.5 Cost of Sales - Land Sales & Other (1.9) (2.4) Gross Margin - Land Sales & Other (1.2) 3.1 Total Gross Margin 35.2 27.3% 26.7 22.2% Selling, General & Administrative (18.3) (14.2%) (15.8) (13.1%) Operating Earnings 16.9 13.1% 10.9 9.1% Interest (0.8) (0.6%) (0.5) (0.5%) Earnings Before Income Taxes $16.1 12.5% $10.4 8.6% Units Closed 410 422 Unit Sales 334 396 Plots Owned and Controlled 5,584 4,938 Average Unit Sales Price $313,051 $272,173 % Change 15.0% 13.8% Operating Earnings per Unit $41,041 $25,912 % Change 58.4% N.M. Attachment 7 (Continued) Centex Corporation and Subsidiaries Supplemental Home Building Data - International Operations (unaudited) (dollars in millions, except per unit data) Nine Months Ended December 31, 2004 2003 HOME BUILDING - INTERNATIONAL Revenues - Housing $322.0 100.0% $298.6 100.0% Cost of Sales - Housing (232.5) (72.2%) (238.3) (79.8%) Gross Margin - Housing 89.5 27.8% 60.3 20.2% Revenues - Land Sales & Other 5.9 6.5 Cost of Sales - Land Sales & Other (7.4) (2.5) Gross Margin - Land Sales & Other (1.5) 4.0 Total Gross Margin 88.0 26.8% 64.3 21.1% Selling, General & Administrative (50.4) (15.3%) (41.1) (13.5%) Operating Earnings 37.6 11.5% 23.2 7.6% Interest (2.0) (0.6%) (1.6) (0.5%) Earnings Before Income Taxes $35.6 10.9% $21.6 7.1% Units Closed 1,067 1,114 Unit Sales 1,037 1,143 Plots Owned and Controlled 5,584 4,938 Average Unit Sales Price $301,808 $268,039 % Change 12.6% 14.2% Operating Earnings per Unit $35,187 $20,832 % Change 68.9% N.M. Attachment 8 Centex Corporation and Subsidiaries Supplemental Financial Services Data CTX Mortgage Company Quarter Ended December 31, 2004 2003 Change Originations Builder 5,463 5,138 6% Retail 9,897 11,657 (15%) Total 15,360 16,795 (9%) Applications Builder 5,463 4,727 16% Retail 8,603 8,954 (4%) Total 14,066 13,681 3% Loan Volume (in billions) $3.07 $2.89 6% Average Loan Size $199,500 $171,900 16% Operating Profit per Loan $1,365 $1,597 (15%) Attachment 8 (Continued) Centex Corporation and Subsidiaries Supplemental Financial Services Data CTX Mortgage Company Nine Months Ended December 31, 2004 2003 Change Originations Builder 15,688 14,307 10% Retail 35,400 56,016 (37%) Total 51,088 70,323 (27%) Applications Builder 17,330 16,939 2% Retail 29,427 50,457 (42%) Total 46,757 67,396 (31%) Loan Volume (in billions) $9.66 $11.88 (19%) Average Loan Size $189,000 $168,900 12% Operating Profit per Loan $1,463 $1,974 (26%) Centex Home Equity Quarter Ended December 31, 2004 2003 Change Originations 11,293 9,185 23% Applications 100,509 83,518 20% Loan Volume (in billions) $1.37 $1.00 37% Average Loan Size $121,100 $109,400 11% Earnings As a % of Average "Owned" Portfolio 1.34% 1.15% Centex Home Equity Nine Months Ended December 31, 2004 2003 Change Originations 33,632 27,768 21% Applications 297,807 249,817 19% Loan Volume (in billions) $4.07 $2.91 40% Average Loan Size $120,900 $104,700 15% Earnings As a % of Average "Owned" Portfolio 1.54% 1.17% Servicing Portfolio: As of December 31, 2004 2003 Change Number of Loans: Portfolio Accounting Method 82,628 73,232 Serviced for Others 14,794 11,376 Total 97,422 84,608 15% Servicing Portfolio (in billions): Portfolio Accounting Method $7.72 $6.08 Serviced for Others 1.16 0.67 Total $8.88 $6.75 32% CPLBF DATASOURCE: Centex Corporation CONTACT: Leldon E. Echols, Executive Vice President and Chief Financial Officer, or Matthew G. Moyer, Vice President-Investor Relations, both of Centex Corporation, +1-214-981-5000 Web site: http://www.sec.gov/ Web site: http://www.centex.com/

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