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Lennar Reports Third Quarter EPS of $0.40

MIAMI, Sept. 24, 2012 /PRNewswire/ --

  • Net earnings of $87.1 million, or $0.40 per diluted share, compared to net earnings of $20.7 million, or $0.11 per diluted share
  • Deliveries of 3,655 homes – up 28%
  • New orders of 4,198 homes – up 44%; cancellation rate of 17%
  • Backlog of 4,513 homes – up 79%; backlog dollar value of $1.3 billion – up 95%
  • Revenues of $1.1 billion – up 34%
  • Gross margin on home sales of 23.2% – improved 210 basis points
  • S,G&A expenses as a % of revenues from home sales of 12.0% – improved 230 basis points
  • Operating margin on home sales of 11.2% – improved 440 basis points
  • Lennar Homebuilding operating earnings of $71.3 million, compared to $27.1 million
  • Lennar Financial Services operating earnings of $25.3 million, compared to $8.0 million
  • Rialto Investments operating earnings totaled $7.7 million (including $13.4 million of net loss attributable to noncontrolling interests), compared to $5.7 million (net of $6.1 million of net earnings attributable to noncontrolling interests)
  • Lennar Homebuilding cash and cash equivalents of $692.0 million
  • Issued $400 million of 4.75% senior notes due 2017
  • Completed the repurchase of $204.7 million aggregate principal amount of 5.95% senior notes due 2013 through a tender offer, resulting in a $6.5 million pre-tax loss
  • No outstanding borrowings under the $525 million credit facility
  • Lennar Homebuilding debt to total capital, net of cash and cash equivalents, of 47.7%

Lennar Corporation (NYSE: LEN and LEN.B), one of the nation's largest homebuilders, today reported results for its third quarter ended August 31, 2012. Third quarter net earnings attributable to Lennar in 2012 were $87.1 million, or $0.40 per diluted share, compared to third quarter net earnings attributable to Lennar of $20.7 million, or $0.11 per diluted share, in 2011.

Stuart Miller, Chief Executive Officer of Lennar Corporation, said, "The housing market has stabilized and the recovery is well underway. Low mortgage rates, affordable home prices, increased buyer confidence and an extremely favorable rent-to-own comparison are driving growth in each of our markets. Additionally, reduced foreclosures and declining distressed home inventory are further contributing to the improvement in the housing market."

"Our third quarter reflects solid profitability in all of our business segments. In homebuilding, we continue to see strong sales trends translating into increased deliveries, stronger gross margins and improved operating leverage. While materials and labor costs are moving higher, sales price increases and incentive reductions should continue to offset the impact of increasing costs. In addition, we will continue to benefit from our opportunistic land acquisitions."

Mr. Miller continued, "Our financial services group has continued to derive earnings from our expanding homebuilding platform and by participating in the robust refinancing market. We are now starting to see great operating leverage in this business as well."

"Rialto has continued to contribute directly to the profitability of the company while providing our homebuilding segment with new opportunities to acquire attractive land parcels. Additionally, Rialto has benefitted from the unwinding of our PPIP program which has driven profitability and has recycled cash back to the company."

Mr. Miller concluded, "Overall, our third quarter reflects excellent overall results and strengthens the financial position of our company, as we grow volume and drive profitability in a recovering market."

RESULTS OF OPERATIONS

THREE MONTHS ENDED AUGUST 31, 2012 COMPARED TO
THREE MONTHS ENDED AUGUST 31, 2011

Lennar Homebuilding

Revenues from home sales increased 33% in the third quarter of 2012 to $932.8 million from $700.6 million in 2011. Revenues were higher primarily due to a 28% increase in the number of home deliveries, excluding unconsolidated entities, and a 4% increase in the average sales price of homes delivered. New home deliveries, excluding unconsolidated entities, increased to 3,617 homes in the third quarter of 2012 from 2,832 homes last year. There was an increase in home deliveries in all the Company's Homebuilding segments and Homebuilding Other. The average sales price of homes delivered increased to $258,000 in the third quarter of 2012 from $247,000 in the same period last year. Sales incentives offered to homebuyers were $26,100 per home delivered in the third quarter of 2012, or 9.2% as a percentage of home sales revenue, compared to $33,600 per home delivered in the same period last year, or 12.0% as a percentage of home sales revenue, and $29,800 per home delivered in the second quarter of 2012, or 10.7% as a percentage of home sales revenue.

Gross margins on home sales were $216.2 million, or 23.2%, in the third quarter of 2012, compared to $147.6 million, or 21.1%, in the third quarter of 2011, which included a 120 basis point benefit related to changes in the Company's cost-to-complete estimates for homebuilding communities in the close-out phase. This benefit primarily impacted the Company's Homebuilding West segment and was offset by valuation adjustments that impacted the gross margin percentage by 130 basis points in the third quarter of 2011. Gross margin percentage on home sales improved compared to last year, primarily due to a greater percentage of deliveries from the Company's new higher margin communities, a decrease in sales incentives offered to homebuyers as a percentage of revenue from home sales, an increase in the average sales price of homes delivered and lower valuation adjustments. Gross profits on land sales totaled $1.3 million in the third quarter of 2012, compared to $1.5 million in the third quarter of 2011.

Selling, general and administrative expenses were $112.2 million in the third quarter of 2012, compared to $100.3 million in the third quarter of 2011. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 12.0% in the third quarter of 2012, from 14.3% in the third quarter of 2011, due to improved operating leverage.

Lennar Homebuilding equity in earnings (loss) from unconsolidated entities was ($6.0) million in the third quarter of 2012, primarily related to the Company's share of operating losses of Lennar Homebuilding unconsolidated entities, compared to Lennar Homebuilding equity in earnings (loss) of ($4.6) million in the third quarter of 2011.

Lennar Homebuilding other income (expense), net, totaled ($5.4) million in the third quarter of 2012, which included a pre-tax loss of $6.5 million related to the repurchase of $204.7 million aggregate principal amount of 5.95% senior notes due 2013 through a tender offer, compared to Lennar Homebuilding other income (expense), net, of $6.9 million in the third quarter of 2011, net of $2.1 million of valuation adjustments to the Company's investments in Lennar Homebuilding unconsolidated entities.

Lennar Homebuilding interest expense was $45.0 million in the third quarter of 2012 ($21.9 million was included in cost of homes sold, $0.4 million in cost of land sold and $22.7 million in other interest expense), compared to $42.4 million in the third quarter of 2011 ($17.8 million was included in cost of homes sold, $0.5 million in cost of land sold and $24.1 million in other interest expense). Interest expense increased due to an increase in the Company's outstanding debt compared to the same period last year.

Lennar Financial Services

Operating earnings for the Lennar Financial Services segment were $25.3 million in the third quarter of 2012, compared to $8.0 million in the third quarter of 2011. The increase in profitability was primarily due to increased volume and margins in the segment's mortgage operations and increased volume in the segment's title operations, as a result of an increase in refinance transactions and homebuilding deliveries.

Rialto Investments

In the third quarter of 2012, operating earnings (loss) for the Rialto Investments segment were $7.7 million (which is comprised of a $5.7 million operating loss and an add back of $13.4 million of net loss attributable to noncontrolling interests), compared to operating earnings (loss) of $5.7 million (which included $11.7 million of operating earnings offset by $6.1 million of net earnings attributable to noncontrolling interests) in the same period last year. In the third quarter of 2012, revenues in this segment were $37.2 million, which consisted primarily of accretable interest income associated with the segment's portfolio of real estate loans and fees for managing and servicing assets, including $8.1 million in fees earned from Rialto's role as sub-advisor to the AllianceBernstein L.P. ("AB") fund formed under the Federal government's Public-Private Investment Program ("PPIP"), compared to revenues of $42.1 million in the same period last year. In the third quarter of 2012, Rialto Investments other income (expense), net, was ($10.1) million, which consisted primarily of expenses related to owning and maintaining real estate owned ("REO") and impairments on REO, partially offset by gains from sales of REO and rental income. In the third quarter of 2011, Rialto Investments other income (expense), net, was $9.7 million, which consisted primarily of gains from acquisition of REO through foreclosure, as well as gains from sales of REO, partially offset by expenses related to owning and maintaining REO.

The segment also had equity in earnings (loss) from unconsolidated entities of $13.6 million during the third quarter of 2012, which included $8.1 million of net gains primarily related to realized gains from the sale of investments in the portfolio underlying the AB PPIP fund, $1.2 million of interest income earned by the AB PPIP fund and $6.2 million of equity in earnings related to the Company's share of earnings from the Rialto Real Estate Fund (the "Fund"). This compared to equity in earnings (loss) from unconsolidated entities of ($6.5) million in the third quarter of 2011, which included $10.2 million of net losses primarily related to unrealized losses for the Company's share of the mark-to-market adjustments of the investment portfolio underlying the AB PPIP fund, partially offset by $2.8 million of interest income earned by the AB PPIP fund. In the third quarter of 2012, expenses in this segment were $46.4 million, which consisted primarily of costs related to its portfolio operations, loan impairments of $20.3 million primarily associated with the segment's FDIC loan portfolio (before noncontrolling interests) and other general and administrative expenses, compared to expenses of $33.6 million in the same period last year.

Corporate General and Administrative Expenses

Corporate general and administrative expenses were $32.3 million, or 2.9% as a percentage of total revenues, in the third quarter of 2012, compared to $22.8 million, or 2.8% as a percentage of total revenues, in the third quarter of 2011. The increase in corporate general and administrative expenses was primarily due to an increase in personnel related expenses as a result of an increase in share-based and variable compensation expense.

Noncontrolling Interests

Net earnings (loss) attributable to noncontrolling interests were ($15.7) million and $2.8 million, respectively, in the third quarter of 2012 and 2011. Net loss attributable to noncontrolling interests during the third quarter of 2012 was primarily related to the FDIC's interest in the portfolio of real estate loans that the Company acquired in partnership with the FDIC. Net earnings attributable to noncontrolling interests during the third quarter of 2011 were related to the FDIC's interest in the portfolio of real estate loans that the Company acquired in partnership with the FDIC, partially offset by a net loss attributable to noncontrolling interests in the Company's homebuilding operations.

Income Taxes

During the third quarter of 2012, the Company concluded that it was more likely than not that a portion of its state deferred tax assets would be utilized. This conclusion was based on additional positive evidence including actual and forecasted earnings. Accordingly, during the third quarter of 2012, the Company reversed $35.4 million of its valuation allowance against its state deferred tax assets and $8.6 million of its valuation allowance that was previously maintained to be utilized in remaining interim periods of 2012. The total reversal for the third quarter of 2012 was $44.0 million. This reversal was offset by a tax provision of $31.2 million primarily related to third quarter 2012 pre-tax earnings. Therefore, the Company had a $12.8 million net benefit for income taxes for the third quarter of 2012.

Debt Transactions

During the third quarter of 2012, the Company issued $400 million of 4.75% senior notes due 2017 in a private offering under SEC Rule 144A. The Company used a portion of the proceeds to repurchase $204.7 million aggregate principal amount of its 5.95% senior notes due 2013 through a tender offer and the remainder of the proceeds will be used for working capital and general corporate purposes.

NINE MONTHS ENDED AUGUST 31, 2012 COMPARED TO
NINE MONTHS ENDED AUGUST 31, 2011

Lennar Homebuilding

Revenues from home sales increased 29% in the nine months ended August 31, 2012 to $2.3 billion from $1.8 billion in 2011. Revenues were higher primarily due to a 26% increase in the number of home deliveries, excluding unconsolidated entities, and a 3% increase in the average sales price of homes delivered. New home deliveries, excluding unconsolidated entities, increased to 9,281 homes in the nine months ended August 31, 2012 from 7,387 homes last year. There was an increase in home deliveries in all of the Company's Homebuilding segments and Homebuilding Other. The average sales price of homes delivered increased to $252,000 in the nine months ended August 31, 2012 from $245,000 in the same period last year. Sales incentives offered to homebuyers were $29,500 per home delivered in the nine months ended August 31, 2012, or 10.5% as a percentage of home sales revenue, compared to $33,600 per home delivered in the same period last year, or 12.1% as a percentage of home sales revenue.

Gross margins on home sales were $523.0 million, or 22.4%, in the nine months ended August 31, 2012, compared to $365.0 million, or 20.2%, in the nine months ended August 31, 2011. Gross margin percentage on home sales improved compared to last year, primarily due to a greater percentage of deliveries from the Company's new higher margin communities, a decrease in sales incentives offered to homebuyers as a percentage of revenue from home sales, an increase in the average sales price of homes delivered and lower valuation adjustments. Gross profits on land sales totaled $6.9 million for both the nine months ended August 31, 2012 and 2011.

Selling, general and administrative expenses were $308.7 million in the nine months ended August 31, 2012, compared to $272.3 million in the same period last year. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 13.2% in the nine months ended August 31, 2012, from 15.1% in the nine months ended August 31, 2011, due to improved operating leverage.

In the nine months ended August 31, 2012, Lennar Homebuilding equity in earnings (loss) from unconsolidated entities was ($14.3) million, primarily related to the Company's share of operating losses of Lennar Homebuilding unconsolidated entities, which included $5.4 million of valuation adjustments related to asset sales at Lennar Homebuilding's unconsolidated entities, compared to Lennar Homebuilding equity in earnings (loss) of $6.5 million in the nine months ended August 31, 2011, which included the Company's share of a gain on debt extinguishment at one of Lennar Homebuilding's unconsolidated entities totaling $15.4 million, partially offset by the Company's share of operating losses of Lennar Homebuilding unconsolidated entities, which included $5.2 million of valuation adjustments related to assets of Lennar Homebuilding's unconsolidated entities.

Lennar Homebuilding other income (expense), net, totaled $11.4 million in the nine months ended August 31, 2012, primarily due to a $15.0 million gain on the sale of an operating property, partially offset by a pre-tax loss of $6.5 million related to the repurchase of $204.7 million aggregate principal amount of 5.95% senior notes due 2013 through a tender offer. This compared to Lennar Homebuilding other income (expense), net, of $46.4 million in the nine months ended August 31, 2011, which included $29.5 million related to the receipt of a litigation settlement, $5.1 million related to the favorable resolution of a joint venture and the recognition of $10.0 million of deferred management fees related to management services previously performed for one of Lennar Homebuilding's unconsolidated entities. These amounts were partially offset by $15.3 million of valuation adjustments to the Company's investments in Lennar Homebuilding's unconsolidated entities and write-offs of other assets in the nine months ended August 31, 2011.

Lennar Homebuilding interest expense was $131.1 million in the nine months ended August 31, 2012 ($58.4 million was included in cost of homes sold, $1.4 million in cost of land sold and $71.3 million in other interest expense), compared to $119.7 million in the nine months ended August 31, 2011 ($49.8 million was included in cost of homes sold, $1.2 million in cost of land sold and $68.7 million in other interest expense). Interest expense increased due to an increase in the Company's outstanding debt compared to the same period last year.

Lennar Financial Services

Operating earnings for the Lennar Financial Services segment were $51.6 million in the nine months ended August 31, 2012, compared to $11.7 million in the same period last year. The increase in profitability was primarily due to increased volume and margins in the segment's mortgage operations and increased volume in the segment's title operations, as a result of an increase in refinance transactions and homebuilding deliveries.

Rialto Investments

In the nine months ended August 31, 2012, operating earnings (loss) for the Rialto Investments segment were $21.4 million (which is comprised of $6.8 million of operating earnings and an add back of $14.6 million of net loss attributable to noncontrolling interests), compared to operating earnings (loss) of $26.5 million (which included $57.4 million of operating earnings offset by $30.9 million of net earnings attributable to noncontrolling interests) in the same period last year. In the nine months ended August 31, 2012, revenues in this segment were $102.9 million, which consisted primarily of accretable interest income associated with the segment's portfolio of real estate loans and fees for managing and servicing assets, compared to revenues of $118.3 million in the same period last year. In the nine months ended August 31, 2012, Rialto Investments other income (expense), net, was ($23.7) million, which consisted primarily of expenses related to owning and maintaining REO and impairments on REO, partially offset by gains from sales of REO and rental income. In the nine months ended August 31, 2011, Rialto Investments other income (expense), net, was $38.3 million, which consisted primarily of gains from acquisition of REO through foreclosure, as well as gains from sales of REO, partially offset by expenses related to owning and maintaining REO, and a $4.7 million gain on the sale of investment securities.

The segment also had equity in earnings (loss) from unconsolidated entities of $37.6 million during the nine months ended August 31, 2012, which included $17.0 million of net gains primarily related to realized gains from the sale of investments in the portfolio underlying the AB PPIP fund, $6.3 million of interest income earned by the AB PPIP fund and $16.8 million of equity in earnings related to the Company's share of earnings from the Fund. This compared to equity in earnings (loss) from unconsolidated entities of ($5.0) million in the nine months ended August 31, 2011, which included $13.0 million of net losses primarily related to unrealized losses for the Company's share of the mark-to-market adjustments of the investment portfolio underlying the AB PPIP fund, partially offset by $8.2 million of interest income earned by the AB PPIP fund. In the nine months ended August 31, 2012, expenses in this segment were $110.0 million, which consisted primarily of costs related to its portfolio operations, loan impairments of $22.6 million primarily associated with the segment's FDIC loan portfolio (before noncontrolling interests) and other general and administrative expenses, compared to expenses of $94.2 million in the same period last year.

Corporate General and Administrative Expenses

Corporate general and administrative expenses were $88.3 million, or 3.2% as a percentage of total revenues, in the nine months ended August 31, 2012, compared to $66.7 million, or 3.1% as a percentage of total revenues, in the nine months ended August 31, 2011. The increase in corporate general and administrative expenses was primarily due to an increase in personnel related expenses as a result of an increase in share-based and variable compensation expense.

Noncontrolling Interests

Net earnings (loss) attributable to noncontrolling interests were ($21.0) million and $25.2 million, respectively, in the nine months ended August 31, 2012 and 2011. Net loss attributable to noncontrolling interests during the nine months ended August 31, 2012 was attributable to noncontrolling interests related to the Company's homebuilding and Rialto Investments operations. Net earnings attributable to noncontrolling interests during the nine months ended August 31, 2011 were primarily related to the FDIC's interest in the portfolio of real estate loans that the Company acquired in partnership with the FDIC, partially offset by a net loss attributable to noncontrolling interests in the Company's homebuilding operations.

Deferred Tax Asset Valuation Allowance

During the nine months ended August 31, 2012, the Company concluded that it was more likely than not that the majority of its deferred tax assets would be utilized. This conclusion was based on a detailed evaluation of all relevant evidence, both positive and negative, including such factors as ten consecutive quarters of earnings, the expectation of continued earnings and signs of recovery in the housing markets the Company operates in. Accordingly, the Company reversed $447.0 million of its valuation allowance against its deferred tax assets. As of August 31, 2012, the Company's remaining valuation allowance against its deferred tax assets was $133.3 million, which in future periods could be reversed if additional sufficient positive evidence is present indicating that it is more likely than not that such assets would be realized.

Revolving Credit Facility

In May 2012, the Company entered into a 3-year unsecured revolving credit facility (the "Credit Facility") with certain financial institutions that expires in May 2015. The maximum aggregate commitment under the Credit Facility is $525 million, of which $440 million was committed and $85 million was available through an accordion feature, subject to additional commitments as of August 31, 2012. Subsequent to August 31, 2012, the committed amount under the Credit Facility was increased to $500 million

Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations.  The Company builds affordable, move-up and retirement homes primarily under the Lennar brand name.  Lennar's Financial Services segment provides mortgage financing, title insurance and closing services for both buyers of the Company's homes and others.  Lennar's Rialto Investments segment is focused on distressed real estate asset investments, asset management and workout strategies. Previous press releases and further information about the Company may be obtained at the "Investor Relations" section of the Company's website, www.lennar.com.

Some of the statements in this press release are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995.  These forward-looking statements include statements regarding our business, financial condition, results of operations, strategies and prospects.  You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters.  Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results.  Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.  Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements.  These factors include those described under the caption "Risk Factors" in Item 1A of our Annual Report on Form 10-K for our fiscal year ended November 30, 2011.  We do not undertake any obligation to update forward-looking statements, except as required by Federal securities laws.

A conference call to discuss the Company's third quarter earnings will be held at 11:00 a.m. Eastern Time on Monday, September 24, 2012.  The call will be broadcast live on the Internet and can be accessed through the Company's website at www.lennar.com.  If you are unable to participate in the conference call, the call will be archived at www.lennar.com for 90 days.  A replay of the conference call will also be available later that day by calling 203-369-3605 and entering 5723593 as the confirmation number.

 

LENNAR CORPORATION AND SUBSIDIARIES
Selected Revenues and Operation Information
(In thousands, except per share amounts)
(unaudited)



Three Months Ended


Nine Months Ended


August 31,


August 31,



2012



2011



2012



2011


Revenues:








Lennar Homebuilding

$

955,800



711,754



2,388,321



1,840,939


Lennar Financial Services

106,764



66,374



263,574



183,509


Rialto Investments

37,194



42,065



102,874



118,283


Total revenues

$

1,099,758



820,193



2,754,769



2,142,731










Lennar Homebuilding operating earnings

$

71,312



27,126



147,121



83,839


Lennar Financial Services operating earnings

25,323



7,988



51,553



11,666


Rialto Investments operating earnings (loss)

(5,714)



11,741



6,813



57,421


Corporate general and administrative expenses

(32,286)



(22,776)



(88,296)



(66,726)


Earnings before income taxes

58,635



24,079



117,191



86,200


Benefit (provision) for income taxes

12,776



(579)



416,621



873


Net earnings (including net earnings (loss)








attributable to noncontrolling interests)

71,411



23,500



533,812



87,073


Less: Net earnings (loss) attributable to








noncontrolling interests

(15,698)



2,770



(20,968)



25,152


Net earnings attributable to Lennar

$

87,109



20,730



554,780



61,921










Average shares outstanding:








Basic

186,761



184,665



186,397



184,480


Diluted

219,581



195,152



217,135



195,105










Earnings per share:








Basic

$

0.46



0.11



2.93



0.33


Diluted

$

0.40



0.11



2.56



0.33










Supplemental information:








Interest incurred (1)

$

56,514



50,940



163,660



150,995










EBIT (2):








Net earnings attributable to Lennar

$

87,109



20,730



554,780



61,921


(Benefit) provision for income taxes

(12,776)



579



(416,621)



(873)


Interest expense

44,999



42,432



131,148



119,749


EBIT

$

119,332



63,741



269,307



180,797



(1) Amount represents interest incurred related to Lennar Homebuilding debt.


(2) EBIT is a non-GAAP financial measure defined as earnings before interest and taxes. This financial measure has been presented because the Company finds it important and useful in evaluating its performance and believes that it helps readers of the Company's financial statements compare its operations with those of its competitors. Although management finds EBIT to be an important measure in conducting and evaluating the Company's operations, this measure has limitations as an analytical tool as it is not reflective of the actual profitability generated by the Company during the period. Management compensates for the limitations of using EBIT by using this non-GAAP measure only to supplement the Company's GAAP results. Due to the limitations discussed, EBIT should not be viewed in isolation, as it is not a substitute for GAAP measures.

 

LENNAR CORPORATION AND SUBSIDIARIES
Segment Information
(In thousands)
(unaudited)






Three Months Ended


Nine Months Ended


August 31,


August 31,


2012


2011


2012


2011

Lennar Homebuilding revenues:








Sales of homes

$

932,838



700,611



2,339,983



1,808,262


Sales of land

22,962



11,143



48,338



32,677


Total revenues

955,800



711,754



2,388,321



1,840,939










Lennar Homebuilding costs and expenses:








Cost of homes sold

716,627



553,027



1,816,944



1,443,262


Cost of land sold

21,626



9,603



41,421



25,785


Selling, general and administrative

112,179



100,279



308,654



272,336


Total costs and expenses

850,432



662,909



2,167,019



1,741,383


Lennar Homebuilding operating margins

105,368



48,845



221,302



99,556


Lennar Homebuilding equity in earnings (loss) from








unconsolidated entities

(5,991)



(4,552)



(14,289)



6,526


Lennar Homebuilding other income (expense), net

(5,406)



6,940



11,419



46,411


Other interest expense

(22,659)



(24,107)



(71,311)



(68,654)


Lennar Homebuilding operating earnings

$

71,312



27,126



147,121



83,839










Lennar Financial Services revenues

$

106,764



66,374



263,574



183,509


Lennar Financial Services costs and expenses

81,441



58,386



212,021



171,843


Lennar Financial Services operating earnings

$

25,323



7,988



51,553



11,666










Rialto Investments revenues

$

37,194



42,065



102,874



118,283


Rialto Investments costs and expenses

46,396



33,562



109,964



94,184


Rialto Investments equity in earnings (loss) from








unconsolidated entities

13,551



(6,505)



37,578



(4,953)


Rialto Investments other income (expense), net

(10,063)



9,743



(23,675)



38,275


Rialto Investments operating earnings (loss)

$

(5,714)



11,741



6,813



57,421


 

LENNAR CORPORATION AND SUBSIDIARIES
Summary of Deliveries and New Orders
(Dollars in thousands)
(unaudited)



Three Months Ended


Nine Months Ended


August 31,


August 31,


2012


2011


2012


2011

Deliveries - Homes:








East

1,339



1,154



3,751



3,163


Central

612



446



1,492



1,187


West

635



506



1,561



1,266


Southeast Florida

335



242



784



573


Houston

550



395



1,324



945


Other

184



122



447



336


Total

3,655



2,865



9,359



7,470



Of the total home deliveries listed above, 38 and 78, respectively, represent home deliveries from unconsolidated entities for the three and nine months ended August 31, 2012, compared to 33 and 83 home deliveries, respectively, from unconsolidated entities in the same periods last year.

 

Deliveries - Dollar Value:








East

$

328,598



254,765



877,858



696,044


Central

137,352



99,635



334,739



255,254


West

202,150



164,856



492,528



416,020


Southeast Florida

93,077



66,763



213,744



153,784


Houston

129,773



90,310



307,167



215,539


Other

65,842



45,969



154,198



128,547


Total

$

956,792



722,298



2,380,234



1,865,188



Of the total dollar value of home deliveries listed above, $24.0 million and $40.3 million, respectively, represent the dollar value of home deliveries from unconsolidated entities for the three and nine months ended August 31, 2012, compared to $21.7 million and $56.9 million dollar value of home deliveries, respectively, from unconsolidated entities in the same periods last year.

 

New Orders - Homes:








East

1,491



1,178



4,342



3,511


Central

644



460



1,923



1,314


West

800



521



2,082



1,439


Southeast Florida

472



221



1,143



644


Houston

535



418



1,585



1,103


Other

256



116



626



374


Total

4,198



2,914



11,701



8,385



Of the total new orders listed above, 35 and 84, respectively, represent new orders from unconsolidated entities for the three and nine months ended August 31, 2012, compared to 30 and 86 new orders, respectively, from unconsolidated entities in the same periods last year.

 

New Orders - Dollar Value:








East

$

376,954



267,070



1,061,269



776,245


Central

158,071



100,972



446,965



282,846


West

250,776



170,096



633,473



476,253


Southeast Florida

134,875



55,787



310,339



174,871


Houston

131,644



94,669



384,682



248,371


Other

94,576



42,759



232,474



141,158


Total

$

1,146,896



731,353



3,069,202



2,099,744



Of the total dollar value of new orders listed above, $23.6 million and $43.8 million, respectively, represent the dollar value of new orders from unconsolidated entities for the three and nine months ended August 31, 2012, compared to $19.8 million and $58.3 million dollar value of new orders, respectively, from unconsolidated entities in the same periods last year.

 


                       August 31,

Backlog - Homes:

2012





2011


East

1,539





1,103


Central

740





381


West

819





352


Southeast Florida

525





194


Houston

616





403


Other

274





86


Total

4,513





2,519


 

Of the total homes in backlog listed above, 8 homes represents the backlog from unconsolidated entities at August 31, 2012, compared to 6 homes in backlog from unconsolidated entities at August 31, 2011.

 

 

Backlog - Dollar Value:


East

$

405,551




258,451


Central

176,781




80,736


West

237,839




117,453


Southeast Florida

150,032




60,121


Houston

157,118




91,615


Other

123,498




34,462


Total

$

1,250,819




642,838






Of the total dollar value of homes in backlog listed above, $4.6 million represents the backlog dollar value from unconsolidated entities at August 31, 2012, compared to $3.6 million of backlog dollar value from unconsolidated entities at August 31, 2011.



Lennar's reportable homebuilding segments and homebuilding other consist of homebuilding divisions located in:

 

East: Florida(1), Georgia, Maryland, New Jersey, North Carolina, South Carolina and Virginia
Central: Arizona, Colorado and Texas(2)
West: California and Nevada

Southeast Florida: Southeast Florida
Houston: Houston, Texas
Other: Illinois, Minnesota, Oregon and Washington

 

(1) Florida in the East reportable segment excludes Southeast Florida, which is its own reportable segment.

(2) Texas in the Central reportable segment excludes Houston, Texas, which is its own reportable segment.

 

Supplemental Data
(Dollars in thousands)
(unaudited)



August 31,


November 30,


August 31,


2012


2011


2011

Lennar Homebuilding debt

$

3,671,595



3,362,759



3,127,649


Total stockholders' equity

3,271,722



2,696,468



2,670,491


Total capital

$

6,943,317



6,059,227



5,798,140


Lennar Homebuilding debt to total capital

52.9

%


55.5

%


53.9

%







Lennar Homebuilding debt

$

3,671,595



3,362,759



3,127,649


Less: Lennar Homebuilding cash and cash equivalents

692,004



1,024,212



800,332


Net Lennar Homebuilding debt

$

2,979,591



2,338,547



2,327,317


Net Lennar Homebuilding debt to total capital (1)

47.7

%


46.4

%


46.6

%


(1) Net Lennar Homebuilding debt to capital consists of net Lennar Homebuilding debt (Lennar Homebuilding debt less Lennar Homebuilding cash and cash equivalents) divided by total capital (net Lennar Homebuilding debt plus total stockholders' equity).

 

SOURCE Lennar Corporation

Allison Bober, Investor Relations, Lennar Corporation, +1-305-485-2038

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