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Press release from PR Newswire

Lennar Reports Fourth Quarter EPS of $0.16

Wednesday, January 11, 2012

Lennar Reports Fourth Quarter EPS of $0.1606:00 EST Wednesday, January 11, 2012MIAMI, Jan. 11, 2012 /PRNewswire/ -- 2011 Fourth QuarterRevenues of $952.7 million ? up 11% Net earnings of $30.3 million, or $0.16 per diluted share, compared to $32.0 million, or $0.17 per 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 pointsS,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 pointsLennar Financial Services operating earnings of $9.1 million, compared to $11.7 million Rialto Investments operating earnings totaled $8.0 million (including $2.0 million of net loss attributable to noncontrolling interests), compared to $12.4 million (net of $12.7 million of net earnings attributable to noncontrolling interests) Rialto Investments operating earnings include mark-to-market unrealized losses of $7.6 million related to the AB PPIP fund, compared to mark-to-market unrealized gains of $4.7 million in 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 YearRevenues of $3.1 billion ? up 1% Net earnings of $92.2 million, or $0.48 per diluted share, compared to $95.3 million, or $0.51 per 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 of the 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 $0.16 per diluted share, compared to fourth quarter net earnings attributable to Lennar in 2010 of $32.0 million, or $0.17 per diluted share. Net earnings attributable to Lennar for the year ended November 30, 2011 were $92.2 million, or $0.48 per diluted share, compared to net earnings attributable to Lennar for the year ended November 30, 2010 of $95.3 million, or $0.51 per diluted share. Stuart Miller, Chief Executive Officer of Lennar Corporation, said, "We are pleased to report EPS of $0.16 for 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 million and 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 OPERATIONSTHREE MONTHS ENDED NOVEMBER 30, 2011 COMPARED TOTHREE MONTHS ENDED NOVEMBER 30, 2010Lennar HomebuildingRevenues from home sales increased 13% in the fourth quarter of 2011 to $816.5 million from $725.8 million in 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 $243,000 in the fourth quarter of 2011 from $238,000 in the same period last year. Sales incentives offered to homebuyers were $33,900 per home delivered in the fourth quarter of 2011, or 12.2% as a percentage of home sales revenue, compared to $33,700 per 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 million of 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 million of 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 million in 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 million in the fourth quarter of 2010, which included a $14.1 million reduction of an obligation related to a profit participation agreement, partially offset by $3.1 million in write-offs of deposits and pre-acquisition costs.Selling, general and administrative expenses were $112.5 million and $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 million in the fourth quarter of 2011, which primarily included the Company's share of valuation adjustments of $57.6 million related 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 million included 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 million in the fourth quarter of 2010.Lennar Homebuilding other income, net, totaled $69.7 million in the fourth quarter of 2011, which included the $62.3 million pre-tax gain discussed above. Lennar Homebuilding other income, net, totaled $4.9 million in the fourth quarter of 2010, net of $1.2 million of valuation adjustments to the Company's investments in unconsolidated entities. Homebuilding interest expense was $43.2 million in the fourth quarter of 2011 ($20.9 million was included in cost of homes sold, $0.3 million in cost of land sold and $22.0 million in other interest expense), compared to $36.9 million in the fourth quarter of 2010 ($19.7 million was included in cost of homes sold, $0.6 million in cost of land sold and $16.6 million in 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 ServicesOperating earnings for the Lennar Financial Services segment was $9.1 million in the fourth quarter of 2011, compared to operating earnings of $11.7 million in the same period last year. The decrease in profitability was due primarily to decreased volume in the segment's mortgage operations. Rialto InvestmentsIn the fourth quarter of 2011, operating earnings for the Rialto Investments segment were $6.0 million (net of $2.0 million of net loss attributable to noncontrolling interests), compared to operating earnings of $25.1 million (which included $12.7 million of 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 million in 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) million in the fourth quarter of 2011, consisting primarily of $7.6 million of 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 million in the same period last year, which included $4.7 million of 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 million in the same period last year.Corporate General and Administrative ExpensesCorporate 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 InterestsNet earnings (loss) attributable to noncontrolling interests were ($4.8) million and $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 Florida homebuilding 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 Carolina and South Carolina from 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 TransactionsIn October 2011, the Company retired the remaining $113.2 million of its 5.95% senior notes due October 2011 for 100% of the outstanding principal amount plus accrued and unpaid interest as of the maturity date. In November 2011, the Company issued $350 million of 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 million of the 3.25% convertible senior notes due 2021 to cover over-allotments.YEAR ENDED NOVEMBER 30, 2011 COMPARED TOYEAR ENDED NOVEMBER 30, 2010Lennar HomebuildingFor both the years ended November 30, 2011 and 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, 2011 from 10,859 homes last year. The average sales price of homes delivered increased to $244,000 in the year ended November 30, 2011 from $243,000 in the same period last year. Sales incentives offered to homebuyers were $33,700 per home delivered in the year ended November 30, 2011, or 12.1% as a percentage of home sales revenue, compared to $32,800 per 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 million of 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 million of valuation adjustments. Gross profits on land sales totaled $7.7 million in the year ended November 30, 2011, net of $0.5 million of valuation adjustments and $1.8 million in write-offs of deposits and pre-acquisition costs, compared to gross profits on land sales of $21.4 million in the year ended November 30, 2010, primarily due to a $14.1 million reduction of an obligation related to a profit participation agreement. Gross profits on land sales for the year ended November 30, 2010 were net of $3.4 million valuation adjustments and $3.1 million in write-offs of deposits and pre-acquisition costs.Selling, general and administrative expenses were $384.8 million in the year ended November 30, 2011, which included $8.4 million related to expenses associated with remedying pre-existing liabilities of a previously acquired company, offset by $8.0 million related to the receipt of a settlement discussed below. Selling, general and administrative expenses were $377.0 million in 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 million in the year ended November 30, 2011, which primarily included the Company's share of valuation adjustments of $57.6 million related 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 million included 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 million of 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 million of valuation adjustments related to assets of Lennar Homebuilding unconsolidated entities, partially offset by a net pre-tax gain of $7.7 million as a result of a transaction by one of Lennar Homebuilding's unconsolidated entities. Lennar Homebuilding other income, net, totaled $116.1 million in the year ended November 30, 2011, which included the $62.3 million pre-tax gain discussed above and $29.5 million related 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, III and his affiliates. As a result of the settlement, the third party paid Lennar total cash consideration of $37.5 million and that the terms are confidential." Lennar Homebuilding other income, net, in the year ended November 30, 2011 also included $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 $10.5 million of 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 million pre-tax gain on the extinguishment of other debt and other income, partially offset by a pre-tax loss of $10.8 million related to the repurchase of senior notes through a tender offer.Homebuilding interest expense was $163.0 million in the year ended November 30, 2011 ($70.7 million was included in cost of homes sold, $1.6 million in cost of land sold and $90.7 million in other interest expense), compared to $143.9 million in the year ended November 30, 2010 ($71.5 million was included in cost of homes sold, $2.0 million in cost of land sold and $70.4 million in 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 ServicesOperating earnings for the Lennar Financial Services segment were $20.7 million in the year ended November 30, 2011, compared to operating earnings of $31.3 million in 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 million of proceeds from the previous sale of a cable system.Rialto InvestmentsIn the year ended November 30, 2011, operating earnings for the Rialto Investments segment were $63.5 million (which included $28.9 million of net earnings attributable to noncontrolling interests), compared to operating earnings of $57.3 million (which included $33.2 million of 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 million in 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 million gain 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) million in the year ended November 30, 2011, consisting primarily of $21.4 million of 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 million in the same period last year, which included $9.3 million of 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 million in the same period last year.Corporate General and Administrative ExpensesCorporate 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 InterestsNet earnings (loss) attributable to noncontrolling interests were $20.3 million and $25.2 million, respectively, in the year ended November 30, 2011 and 2010. Net earnings attributable to noncontrolling interests during both the years ended November 30, 2011 and 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, 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, 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 Time on Wednesday, January 11, 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 203-369-3765 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 27,008 109,044 100,060Lennar Financial Services operating earnings   9,063 11,719 20,729 31,284Rialto Investments operating earnings   6,036 25,112 63,457 57,307Corporate general and administrative expenses  (28,530) (25,058) (95,256) (93,926)Earnings before income taxes  11,774 38,781 97,974 94,725Benefit for income taxes  13,697 3,737 14,570 25,734Net 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 25,198Net 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) from unconsolidated 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 CorporationFor further information: Diane Bessette, Vice President and Treasurer, Lennar Corporation, +1-305-229-6419