Lennar Corporation : Lennar Reports Fourth Quarter EPS of $0.16

MIAMI, Jan. 11, 2012/PRNewswire/ --

2011 Fourth Quarter

• Revenues of $952.7 million- up 11%
• Net earnings of $30.3 million, or $0.16per diluted share, compared to $32.0 million, or $0.17per diluted share
• Lennar Homebuilding operating earnings of $25.2 million, compared to $27.0 million
• Gross margin on home sales:
  • 21.6% (excluding valuation adjustments of $17.9 million) - improved 80 basis points
  • 19.4% (including valuation adjustments) - improved 170 basis points
• S,G&A expenses as a % of revenues from home sales of 13.8%, improved 30 basis points
• Operating margin on home sales:
  • 7.8% (excluding valuation adjustments of $17.9 million) - improved 110 basis points
  • 5.6% (including valuation adjustments) - improved 190 basis points
• Lennar Financial Services operating earnings of $9.1 million, compared to $11.7 million
• Rialto Investments operating earnings totaled $8.0 million(including $2.0 millionof net loss attributable to noncontrolling interests), compared to $12.4 million(net of $12.7 millionof net earnings attributable to noncontrolling interests)
• Rialto Investments operating earnings include mark-to-market unrealized losses of $7.6 millionrelated to the AB PPIP fund, compared to mark-to-market unrealized gains of $4.7 millionin Q4 2010.
• Deliveries of 3,375 homes - up 9%
• New orders of 3,027 homes - up 20%
• Cancellation rate of 20%
• Backlog of 2,171 homes - up 35%
• Lennar Homebuilding cash and cash equivalents of $1.0 billion
• Lennar Homebuilding debt to total capital, net of cash and cash equivalents, of 46.4%

2011 Fiscal Year

• Revenues of $3.1 billion- up 1%
• Net earnings of $92.2 million, or $0.48per diluted share, compared to $95.3 million, or $0.51per diluted share
• Deliveries of 10,845 homes -down 1%
• New orders of 11,412 homes - up 4%

Lennar Corporation (NYSE: LEN and LEN.B), one ofthe nation's largest homebuilders, today reported results for its fourth quarter and fiscal year ended November 30, 2011. Fourth quarter net earnings attributable to Lennar in 2011 were $30.3 million, or $0.16per diluted share, compared to fourth quarter net earnings attributable to Lennar in 2010 of $32.0 million, or $0.17per diluted share. Net earnings attributable to Lennar for the year ended November 30, 2011were $92.2 million, or $0.48per diluted share, compared to net earnings attributable to Lennar for the year ended November 30, 2010of $95.3 million, or $0.51per diluted share.

Stuart Miller, Chief Executive Officer of Lennar Corporation, said, "We are pleased to report EPS of $0.16for our fourth fiscal quarter of 2011, making this our seventh consecutive quarter of profitability. Despite operating in a challenging real estate market, we achieved profitability in all of our business segments."

"During the quarter, we continued to manage our homebuilding business carefully with tight controls over our costs and a focus on improving our gross margins. We benefited greatly from our strategic capital investments in new higher margin communities, which helped us produce a 21.6% gross margin, excluding valuation adjustments, in the fourth quarter."

Mr. Miller continued, "As we come to the end of 2011 and head into 2012, we have seen the market start to stabilize, driven by a combination of low home prices and low interest rates, making the decision to purchase a new home more attractive, compared to the heated rental market. These factors are reflected in our new orders and sales backlog, which increased 20% and 35%, respectively, from the prior year quarter."

"On the Rialto side of our business, our first real estate fund successfully raised $700 millionand is now contributing management fees and investment income to our bottom line results. We continue to see significant opportunities to invest in distressed assets for our Rialto business."

Mr. Miller concluded, "Our balance sheet strength will allow us to capitalize on future opportunities as they present themselves, and we believe that our Homebuilding and Rialto segments are well positioned to lead the way to a third consecutive profitable year in 2012."

RESULTS OF OPERATIONS

THREE MONTHS ENDED NOVEMBER 30, 2011COMPARED TO
THREE MONTHS ENDED NOVEMBER 30, 2010

Lennar Homebuilding
Revenues from home sales increased 13% in the fourth quarter of 2011 to $816.5 millionfrom $725.8 millionin the fourth quarter of 2010. Revenues were higher primarily due to a 10% increase in the number of home deliveries, excluding unconsolidated entities and a 2% increase in the average sales price of homes delivered. New home deliveries, excluding unconsolidated entities, increased to 3,359 homes in the fourth quarter of 2011 from 3,060 homes last year. The average sales price of homes delivered increased to $243,000in the fourth quarter of 2011 from $238,000in the same period last year. Sales incentives offered to homebuyers were $33,900per home delivered in the fourth quarter of 2011, or 12.2% as a percentage of home sales revenue, compared to $33,700per home delivered in the fourth quarter of 2010, or 12.4% as a percentage of home sales revenue. 

Gross margins on home sales were $158.4 million, or 19.4%, in the fourth quarter of 2011, which included $17.9 millionof valuation adjustments, compared to gross margins on home sales of $128.7 million, or 17.7%, in the fourth quarter of 2010, which included $22.3 millionof valuation adjustments. Gross margin percentage on home sales improved compared to last year primarily due to a reduction in valuation adjustments.

Gross profits on land sales totaled $0.8 millionin the fourth quarter of 2011, net of $0.4 million of write-offs of deposits and pre-acquisition costs, compared to gross profits on land sales of $13.7 millionin the fourth quarter of 2010, which included a $14.1 millionreduction of an obligation related to a profit participation agreement, partially offset by $3.1 millionin write-offs of deposits and pre-acquisition costs.

Selling, general and administrative expenses were $112.5 millionand $102.0 million, respectively, in the fourth quarter of 2011 and 2010.  Selling, general and administrative expenses as a percentage of revenues from home sales improved 30 basis points to 13.8% in the fourth quarter of 2011, compared to 14.1% in the fourth quarter of 2010.

Lennar Homebuilding equity in loss from unconsolidated entities was $69.2 millionin the fourth quarter of 2011, which primarily included the Company's share of valuation adjustments of $57.6 millionrelated to an asset distribution from a Lennar Homebuilding unconsolidated entity as the result of a linked transaction. This was offset by a pre-tax gain of $62.3 millionincluded in Lennar Homebuilding other income, net, related to that unconsolidated entity's net asset distribution. The transaction resulted in a net pre-tax gain of $4.7 million. Lennar Homebuilding equity in loss from unconsolidated entities was $1.7 millionin the fourth quarter of 2010.

Lennar Homebuilding other income, net, totaled $69.7 millionin the fourth quarter of 2011, which included the $62.3 millionpre-tax gain discussed above. Lennar Homebuilding other income, net, totaled $4.9 millionin the fourth quarter of 2010, net of $1.2 millionof valuation adjustments to the Company's investments in unconsolidated entities.

Homebuilding interest expense was $43.2 millionin the fourth quarter of 2011 ($20.9 millionwas included in cost of homes sold, $0.3 millionin cost of land sold and $22.0 millionin other interest expense), compared to $36.9 millionin the fourth quarter of 2010 ($19.7 millionwas included in cost of homes sold, $0.6 millionin cost of land sold and $16.6 millionin other interest expense). Interest expense increased primarily 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 was $9.1 millionin the fourth quarter of 2011, compared to operating earnings of $11.7 millionin the same period last year. The decrease in profitability was due primarily to decreased volume in the segment's mortgage operations.

Rialto Investments
In the fourth quarter of 2011, operating earnings for the Rialto Investments segment were $6.0 million(net of $2.0 millionof net loss attributable to noncontrolling interests), compared to operating earnings of $25.1 million(which included $12.7 millionof net earnings attributable to noncontrolling interests) in the same period last year. In the fourth quarter of 2011, revenues in this segment were $46.5 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 $19.7 millionin the same period last year, which consisted primarily of accretable interest income associated with the segment's portfolio of real estate loans. In the fourth quarter of 2011, Rialto Investments other income, net, was $0.9 million, which consisted primarily of gains from acquisition of real estate owned through foreclosure as well as gains from real estate sales, offset by expenses related to owning and maintaining real estate owned assets. In the fourth quarter of 2010, Rialto Investments other income, net, was $17.3 million, which consisted primarily of gains from acquisition of real estate owned through foreclosure as well as gains from real estate sales.

The segment also had equity in earnings (loss) from unconsolidated entities of ($3.0) millionin the fourth quarter of 2011, consisting primarily of $7.6 millionof unrealized losses related to the Company's share of the mark-to-market adjustments of the investment portfolio underlying the AllianceBernstein L.P. ("AB") fund formed under the Federal government's Public-Private Investment Program ("PPIP"), partially offset by interest income earned by the AB PPIP fund and equity in earnings related to the Rialto Investments Real Estate Fund. This compares to equity in earnings (loss) from unconsolidated entities of $9.0 millionin the same period last year, which included $4.7 millionof unrealized gains related to the Company's share of the mark-to-market adjustments of AB PPIP investments. In the fourth quarter of 2011, expenses in this segment were $38.4 million, which consisted primarily of costs related to its portfolio operations, due diligence expenses related to both completed and abandoned transactions, and other general and administrative expenses, compared to expenses of $20.8 millionin the same period last year.

Corporate General and Administrative Expenses
Corporate general and administrative expenses were $28.5 million, or 3.0% as a percentage of total revenues, in the fourth quarter of 2011, compared to $25.1 million, or 2.9% as a percentage of total revenues, in the fourth quarter of 2010.

Noncontrolling Interests
Net earnings (loss) attributable to noncontrolling interests were ($4.8) millionand $10.5 million, respectively, in the fourth quarter of 2011 and 2010. Net loss attributable to noncontrolling interests during the fourth quarter of 2011 was attributable to noncontrolling interests related to the Company's homebuilding and Rialto Investments operations. Net earnings attributable to noncontrolling interests during the fourth quarter of 2010 was primarily related to net earnings attributable to the FDIC's interest in the portfolio of real estate loans that the Company acquired in partnership with the FDIC, partially offset by net loss attributable to noncontrolling interests related to the Company's homebuilding operations.

Change in Reportable Segments

The Company has disaggregated its Southeast Floridahomebuilding division from its Homebuilding East reportable segment and has presented Homebuilding Southeast Florida as a separate reportable segment due to the division currently achieving one of the quantitative thresholds set forth in Accounting Standard Codification Topic 280, Segment Reporting, ("ASC 280"). In addition, the Company reclassified the homebuilding activities in the states of Georgia, North Carolinaand South Carolinafrom Homebuilding Other to the Homebuilding East reportable segment because these states currently meet the reportable segment aggregation criteria in ASC 280. All prior year segment information has been restated to conform to the quarterly and fiscal year 2011 presentation, and have no effect on the Company's consolidated financial position, results of operations or cash flows for such periods.

Debt Transactions
In October 2011, the Company retired the remaining $113.2 millionof its 5.95% senior notes due October 2011for 100% of the outstanding principal amount plus accrued and unpaid interest as of the maturity date. In November 2011, the Company issued $350 millionof 3.25% convertible senior notes due 2021 in a private offering under SEC Rule 144A. Subsequent to November 30, 2011, the Company issued an additional $50.0 millionof the 3.25% convertible senior notes due 2021 to cover over-allotments.

YEAR ENDED NOVEMBER 30, 2011COMPARED TO
YEAR ENDED NOVEMBER 30, 2010

Lennar Homebuilding
For both the years ended November 30, 2011and 2010, revenues from home sales were $2.6 billion. There was a 1% increase in the average sales price of homes delivered, offset by a 1% decrease in the number of home deliveries, excluding unconsolidated entities. New home deliveries, excluding unconsolidated entities, decreased to 10,746 homes in the year ended November 30, 2011from 10,859 homes last year. The average sales price of homes delivered increased to $244,000in the year ended November 30, 2011from $243,000in the same period last year. Sales incentives offered to homebuyers were $33,700per home delivered in the year ended November 30, 2011, or 12.1% as a percentage of home sales revenue, compared to $32,800per home delivered in the same period last year, or 11.9% as a percentage of home sales revenue.

Gross margins on home sales were $523.4 million, or 19.9%, in the year ended November 30, 2011, which included $35.7 millionof valuation adjustments, compared to gross margins on home sales of $517.9 million, or 19.7%, in the year ended November 30, 2010, which included $44.7 millionof valuation adjustments.

Gross profits on land sales totaled $7.7 millionin the year ended November 30, 2011, net of $0.5 millionof valuation adjustments and $1.8 millionin write-offs of deposits and pre-acquisition costs, compared to gross profits on land sales of $21.4 millionin the year ended November 30, 2010, primarily due to a $14.1 millionreduction of an obligation related to a profit participation agreement. Gross profits on land sales for the year ended November 30, 2010were net of $3.4 millionvaluation adjustments and $3.1 millionin write-offs of deposits and pre-acquisition costs.

Selling, general and administrative expenses were $384.8 millionin the year ended November 30, 2011, which included $8.4 millionrelated to expenses associated with remedying pre-existing liabilities of a previously acquired company, offset by $8.0 millionrelated to the receipt of a settlement discussed below. Selling, general and administrative expenses were $377.0 millionin the year ended November 30, 2010. Selling, general and administrative expenses as a percentage of revenues from home sales increased to 14.7% in the year ended November 30, 2011, from 14.3% in 2010.

Lennar Homebuilding equity in loss from unconsolidated entities was $62.7 millionin the year ended November 30, 2011, which primarily included the Company's share of valuation adjustments of $57.6 millionrelated to an asset distribution from a Lennar Homebuilding unconsolidated entity as the result of a linked transaction. This was offset by a pre-tax gain of $62.3 millionincluded in Lennar Homebuilding other income, net, related to that unconsolidated entity's net asset distribution. The transaction resulted in a net pre-tax gain of $4.7 million. In addition, Lennar Homebuilding equity in loss from unconsolidated entities included $8.9 millionof valuation adjustments related to assets of Lennar Homebuilding's unconsolidated entities, offset by the Company's share of a gain on debt extinguishment at one of Lennar Homebuilding's unconsolidated entities totaling $15.4 million. In the year ended November 30, 2010, Lennar Homebuilding equity in loss from unconsolidated entities was $11.0 million, which included $10.5 millionof valuation adjustments related to assets of Lennar Homebuilding unconsolidated entities, partially offset by a net pre-tax gain of $7.7 millionas a result of a transaction by one of Lennar Homebuilding's unconsolidated entities.

Lennar Homebuilding other income, net, totaled $116.1 millionin the year ended November 30, 2011, which included the $62.3 millionpre-tax gain discussed above and $29.5 millionrelated to the receipt of a settlement. The parties to certain litigation in which the Company was plaintiff entered into a settlement agreement in which they agreed the Company may make the following statement: "Lennar recently settled litigation against a third party in connection with Lennar's ongoing dispute with Nicolas Marsch, IIIand his affiliates. As a result of the settlement, the third party paid Lennar total cash consideration of $37.5 millionand that the terms are confidential." Lennar Homebuilding other income, net, in the year ended November 30, 2011also included $5.1 millionrelated to the favorable resolution of a joint venture and the recognition of $10.0 millionof deferred management fees related to management services previously performed for one of Lennar Homebuilding's unconsolidated entities. These amounts were partially offset by $10.5 millionof valuation adjustments to the Company's investments in Lennar Homebuilding's unconsolidated entities. In the year ended November 30, 2010, Lennar Homebuilding other income, net, was $19.1 million, which included a $19.4 millionpre-tax gain on the extinguishment of other debt and other income, partially offset by a pre-tax loss of $10.8 millionrelated to the repurchase of senior notes through a tender offer.

Homebuilding interest expense was $163.0 millionin the year ended November 30, 2011($70.7 millionwas included in cost of homes sold, $1.6 millionin cost of land sold and $90.7 millionin other interest expense), compared to $143.9 millionin the year ended November 30, 2010($71.5 millionwas included in cost of homes sold, $2.0 millionin cost of land sold and $70.4 millionin other interest expense). Interest expense increased primarily 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 $20.7 millionin the year ended November 30, 2011, compared to operating earnings of $31.3 millionin the same period last year. The decrease in profitability was due primarily to decreased volume in the segment's mortgage operations. In addition, in the year ended November 30, 2010, the Lennar Financial Services segment received $5.1 millionof proceeds from the previous sale of a cable system.

Rialto Investments
In the year ended November 30, 2011, operating earnings for the Rialto Investments segment were $63.5 million(which included $28.9 millionof net earnings attributable to noncontrolling interests), compared to operating earnings of $57.3 million(which included $33.2 millionof net earnings attributable to noncontrolling interests) in the same period last year. In the year ended November 30, 2011, revenues in this segment were $164.7 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 $92.6 millionin the same period last year. In the year ended November 30, 2011, Rialto Investments other income, net, was $39.2 million, which consisted primarily of gains from acquisition of real estate owned through foreclosure, as well as gains from real estate sales, partially offset by expenses related to owning and maintaining those assets, and a $4.7 milliongain on the sale of investment securities. In the year ended November 30, 2010, Rialto Investments other income, net, was $17.3 million, which consisted primarily of gains from acquisition of real estate owned through foreclosure as well as gains from real estate sales.

The segment also had equity in earnings (loss) from unconsolidated entities of ($7.9) millionin the year ended November 30, 2011, consisting primarily of $21.4 millionof unrealized losses related to the Company's share of the mark-to-market adjustments of the investment portfolio underlying the AB PPIP fund, partially offset by interest income earned by the AB PPIP fund and equity in earnings related to the Rialto Investments Real Estate Fund.  This compares to equity in earnings (loss) from unconsolidated entities of $15.4 millionin the same period last year, which included $9.3 millionof unrealized gains related to the Company's share of the mark-to-market adjustments of AB PPIP investments. In the year ended November 30, 2011, expenses in this segment were $132.6 million, which consisted primarily of costs related to its portfolio operations, due diligence expenses related to both completed and abandoned transactions, and other general and administrative expenses, compared to expenses of $67.9 millionin the same period last year.

Corporate General and Administrative Expenses
Corporate general and administrative expenses were $95.3 million, or 3.1% as a percentage of total revenues, in the year ended November 30, 2011, compared to $93.9 million, or 3.1% as a percentage of total revenues, in the year ended November 30, 2010.

Noncontrolling Interests
Net earnings (loss) attributable to noncontrolling interests were $20.3 millionand $25.2 million, respectively, in the year ended November 30, 2011and 2010. Net earnings attributable to noncontrolling interests during both the years ended November 30, 2011and 2010 were primarily related to the FDIC's interest in the portfolio of real estate loans that the Company acquired in partnership with the FDIC.

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 primarily 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, .

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, cash flows, 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, 2010.  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 fourth quarter earnings will be held at 11:00 a.m. Eastern Timeon Wednesday, January 11, 2012.  The call will be broadcast live on the Internet and can be accessed through the Company's website at .  If you are unable to participate in the conference call, the call will be archived at for 90 days.  A replay of the conference call will also be available later that day by calling 203-369-3765 and entering 5723593 as the confirmation number.

LENNAR CORPORATION AND SUBSIDIARIES
Selected Revenues and Operational Information
(In thousands, except per share amounts)
(unaudited)
					Three Months Ended					Years Ended
					November 30,					November 30,
					2011			2010		2011		2010
Revenues:
	Lennar Homebuilding				$	834,185		761,386		2,675,124		2,705,639
	Lennar Financial Services					72,009		79,059		255,518		275,786
	Rialto Investments					46,460		19,679		164,743		92,597
		Total revenues			$	952,654		860,124		3,095,385		3,074,022
Lennar Homebuilding operating earnings					$	25,205		27,008		109,044		100,060
Lennar Financial Services operating earnings						9,063		11,719		20,729		31,284
Rialto Investments operating earnings						6,036		25,112		63,457		57,307
Corporate general and administrative expenses						(28,530)		(25,058)		(95,256)		(93,926)
Earnings before income taxes						11,774		38,781		97,974		94,725
Benefit for income taxes						13,697		3,737		14,570		25,734
Net earnings (including net earnings (loss)
		attributable to noncontrolling interests)				25,471		42,518		112,544		120,459
	Less: Net earnings (loss) attributable to
		noncontrolling interests				(4,807)		10,488		20,345		25,198
Net earnings attributable to Lennar					$	30,278		32,030		92,199		95,261
Average shares outstanding:
	Basic					184,723		183,102		184,541		182,960
	Diluted					195,425		193,239		195,185		188,857
Earnings per share:
	Basic				$	0.16		0.17		0.49		0.51
	Diluted				$	0.16		0.17		0.48		0.51
Supplemental information:
	Interest incurred (1)				$	50,406		45,405		201,401		181,480
	EBIT (2):
		Net earnings attributable to Lennar			$	30,278		32,030		92,199		95,261
		Benefit for income taxes				(13,697)		(3,737)		(14,570)		(25,734)
		Interest expense				43,221		36,907		162,970		143,946
		EBIT			$	59,802		65,200		240,599		213,473
(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					Years Ended
					November 30,					November 30,
					2011			2010		2011		2010
Lennar Homebuilding revenues:
	Sales of homes				$	816,523		725,795		2,624,785		2,631,314
	Sales of land					17,662		35,591		50,339		74,325
		Total revenues				834,185		761,386		2,675,124		2,705,639
Lennar Homebuilding costs and expenses:
	Cost of homes sold					658,152		597,080		2,101,414		2,113,393
	Cost of land sold					16,826		21,878		42,611		52,968
	Selling, general and administrative					112,462		102,049		384,798		376,962
		Total costs and expenses				787,440		721,007		2,528,823		2,543,323
Lennar Homebuilding operating margins						46,745		40,379		146,301		162,316
Lennar Homebuilding equity in loss from unconsolidated entities						(69,242)		(1,656)		(62,716)		(10,966)
Lennar Homebuilding other income, net						69,698		4,861		116,109		19,135
Other interest expense						(21,996)		(16,576)		(90,650)		(70,425)
Lennar Homebuilding operating earnings					$	25,205		27,008		109,044		100,060
Lennar Financial Services revenues					$	72,009		79,059		255,518		275,786
Lennar Financial Services costs and expenses						62,946		67,340		234,789		244,502
Lennar Financial Services operating earnings					$	9,063		11,719		20,729		31,284
Rialto Investments revenues					$	46,460		19,679		164,743		92,597
Rialto Investments costs and expenses						38,399		20,831		132,583		67,904
Rialto Investments equity in earnings (loss) fromunconsolidated entities						(2,961)		9,013		(7,914)		15,363
Rialto Investments other income, net						936		17,251		39,211		17,251
Rialto Investments operating earnings					$	6,036		25,112		63,457		57,307

LENNAR CORPORATION AND SUBSIDIARIES
Summary of Deliveries and New Orders
(Dollars in thousands)
(unaudited)
							Three Months Ended				Years Ended
							November 30,				November 30,
							2011		2010		2011		2010
Deliveries - Homes:
	East						1,413		1,393		4,576		4,539
	Central						474		422		1,661		1,682
	West						580		490		1,846		2,079
	Southeast Florida						331		240		904		536
	Houston						466		428		1,411		1,645
	Other						111		116		447		474
		Total					3,375		3,089		10,845		10,955
Of the total home deliveries listed above, 16 and 99, respectively, represent home deliveries from unconsolidated entities for the three months and year ended November 30, 2011,compared to 29 and 96 home deliveries from unconsolidated entities in the same periods last year.
Deliveries - Dollar Value:
	East						$ 313,706		294,335		1,009,750		970,355
	Central						100,096		86,789		355,350		348,486
	West						182,182		163,582		598,202		711,822
	Southeast Florida						85,824		62,800		239,607		131,091
	Houston						106,369		92,915		321,908		357,590
	Other						37,638		43,212		166,186		172,948
		Total					$ 825,815		743,633		2,691,003		2,692,292
Of the total dollar value of home deliveries listed above, $9.3 million and $66.2 million, respectively, represent the dollar value of home deliveries from unconsolidated entities for the three months and year ended November 30, 2011, compared to $17.8 million and $61.0 million dollar value of home deliveries from unconsolidated entities in the same periods last year.
New Orders - Homes:
	East						1,258		1,024		4,769		4,509
	Central						402		425		1,716		1,769
	West						526		394		1,965		1,922
	Southeast Florida						303		168		947		614
	Houston						418		397		1,521		1,641
	Other						120		112		494		473
		Total					3,027		2,520		11,412		10,928
Of the total new orders listed above, 12 and 98, respectively, represent new orders from unconsolidated entities for the three months and year ended November 30, 2011, compared to 24 and 90 new orders from unconsolidated entities in the same periods last year.
New Orders - Dollar Value:
	East						$ 275,378		213,507		1,051,624		954,255
	Central						84,428		85,237		367,274		365,667
	West						162,165		119,533		638,418		625,469
	Southeast Florida						79,762		42,168		254,632		156,424
	Houston						94,465		84,538		342,836		355,771
	Other						48,500		40,535		189,658		169,025
		Total					$ 744,698		585,518		2,844,442		2,626,611
Of the total dollar value of new orders listed above, $6.7 million and $65.1 million, respectively, represent the dollar value of new orders from unconsolidated entities for the three months and year ended November 30, 2011, compared to $14.2 million and $55.9 million dollar value of new orders from unconsolidated entities in the same periods last year.

LENNAR CORPORATION AND SUBSIDIARIES
Summary of Backlog
(Dollars in thousands)
(unaudited)
											November 30,
											2011		2010
Backlog - Homes:
	East										948		755
	Central										309		254
	West										298		179
	Southeast Florida										166		123
	Houston										355		245
	Other										95		48
		Total									2,171		1,604
Of the total homes in backlog listed above, 2 homes represents the backlog from unconsolidated entities at November 30, 2011, compared to 3 homes in backlog from unconsolidated entities at November 30, 2010.
Backlog - Dollar Value:
	East										$    220,974		176,588
	Central										65,256		52,923
	West										97,292		58,072
	Southeast Florida										52,013		39,035
	Houston										79,800		58,822
	Other										45,324		21,852
		Total									$    560,659		407,292
Of the total dollar value of homes in backlog listed above, $1.0 million represents the backlog dollar value from unconsolidated entities at November 30, 2011, compared to $2.1 million of backlog dollar value from unconsolidated entities at November 30, 2010.
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 and Minnesota
(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)
											November 30,
											2011		2010
Lennar Homebuilding debt											$ 3,362,759		3,128,154
Total stockholders' equity											2,696,468		2,608,949
	Total capital										$ 6,059,227		5,737,103
Lennar Homebuilding debt to total capital											55.5%		54.5%
Lennar Homebuilding debt											$ 3,362,759		3,128,154
Less: Lennar Homebuilding cash and cash equivalents											1,024,212		1,207,247
	Net Lennar Homebuilding debt										$ 2,338,547		1,920,907
Net Lennar Homebuilding debt to total capital (1)											46.4%		42.4%
(1)	Net Lennar Homebuilding debt to total 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

Diane Bessette, Vice President and Treasurer, Lennar Corporation, [phone]