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Centex Homes Completes Acquisition of St. Louis Home Builder; Purchase Of Jones Company Establishes
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01/16/2005
Centex Homes, the home-building subsidiary of Dallas-based Centex Corporation (NYSE: CTX), has completed the previously announced acquisition of substantially all of the St. Louis and Indianapolis area home-building operations of The Jones Company. The purchase price and terms of the transaction were not disclosed. The acquisition includes all homes under construction as well as approximately 5,000 owned or controlled lots in the greater St. Louis and Indianapolis areas. The acquired assets in the St. Louis area will make up all of Centex Homes' new St. Louis Division, which will continue to use The Jones Company brand name. The Indianapolis assets will be merged into an existing Centex Homes division in Indianapolis and sold under the Centex Homes name. The Jones Company builds entry-level, move-up and luxury single-family homes, as well as townhouses. The company operates in three markets: St. Louis (including southern Illinois), Indianapolis and Nashville (not included in the acquisition). For the 12 months ended March 31, 2002, the company delivered 733 homes at an average sales price of $260,000. Andy Hannigan, president and chief executive officer for Centex Homes, said, "This acquisition establishes Centex Homes as the largest builder of single-family homes in a strategically important market. It also gives us the opportunity to work with a solid, highly reputable team already accustomed to building quality homes and neighborhoods for customers in that market. With a backlog of 430 homes at the beginning of this January, The Jones Company is well positioned to make an immediate contribution to Centex Homes next year and for years to come." Dallas-based Centex Homes is one of the nation's leading home builders, operating in more than 90 markets in 25 states. Its key brands include entry- level Fox & Jacobs Homes and on-your-lot builder Wayne Homes. Centex Homes expects to deliver more than 25,000 homes during its current fiscal year, which ends March 31, 2003. The company is a subsidiary of Centex Corporation, a Fortune 500 company. Centex Corporation, through other subsidiaries, ranks as one of the nation's largest non-bank-affiliated retail mortgage loan originators and general building contractors. The company also has operations in home services and investment real estate and owns a majority interest in a publicly held construction products company. Centex ranks No. 1 for the third consecutive year on Fortune magazine's list of "America's Most Admired Companies"(TM) in the engineering and construction category.
Forward-Looking Statements. The foregoing 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 the Company is discussing its beliefs, estimates or expectations. These statements are not guarantees of future performance and involve a number of risks and uncertainties. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. The principal risks and uncertainties that may affect the Company's actual performance and results of operations include the following: general economic conditions and interest rates; the cyclical and seasonal nature of the Company's businesses; adverse weather; changes in property taxes and energy costs; changes in federal income tax laws and federal mortgage financing programs; governmental regulation; changes in governmental and public policy; changes in economic conditions specific to any one or more of the Company's markets and businesses; competition; availability of raw materials; and unexpected operations difficulties. Other risks and uncertainties may also affect the outcome of the Company's actual performance and results of operations. These and other factors are described in Centex Corporation's most recent Annual Report on form 10-K for the fiscal year ended March 31, 2002 and in its Quarterly Report on Form 10-Q for the fiscal quarters ended June 30, 2002, and September 30, 2002, each of which is filed with the Securities and Exchange Commission.
