Lennar Reports Fourth Quarter EPS of $0.56

                  Lennar Reports Fourth Quarter EPS of $0.56

PR Newswire

MIAMI, Jan. 15, 2013

MIAMI, Jan. 15, 2013 /PRNewswire/ --

2012 Fourth Quarter

  oNet earnings of $124.3 million, or $0.56 per diluted share, compared to
    net earnings of $30.3 million, or $0.16 per diluted share
  oDeliveries of 4,443 homes – up 32%
  oNew orders of 3,983 homes – up 32%
  oBacklog of 4,053 homes – up 87%; backlog dollar value of $1.2 billion – up
    107%
  oRevenues of $1.3 billion – up 42%
  oGross margin on home sales of 23.5% – improved 410 basis points
  oS,G&A expenses as a % of revenues from home sales of 11.3% – improved 250
    basis points
  oOperating margin on home sales of 12.2% – improved 660 basis points
  oLennar Homebuilding operating earnings of $106.0 million, compared to
    $25.2 million
  oLennar Financial Services operating earnings of $33.2 million, compared to
    $9.1 million
  oRialto Investments operating earnings totaled $4.6 million (net of $0.2
    million of net earnings attributable to noncontrolling interests),
    compared to $8.0 million (including an add back of $2.0 million of net
    loss attributable to noncontrolling interests)
  oLennar Homebuilding cash and cash equivalents of $1.1 billion
  oNo outstanding borrowings under the $525 million credit facility
  oIssued $350 million of 4.750% senior notes due 2022
  oLennar Homebuilding debt to total capital, net of cash and cash
    equivalents, of 45.6%

2012 Fiscal Year

  oNet earnings of $679.1 million, or $3.11 per diluted share, which includes
    a partial reversal of the deferred tax asset valuation allowance of $491.5
    million, or $2.25 per diluted share, compared to net earnings of $92.2
    million, or $0.48 per diluted share
  oRevenues of $4.1 billion – up 33%
  oDeliveries of 13,802 homes – up 27%
  oNew orders of 15,684 homes – up 37%

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 November30, 2012. Fourth quarter net earnings attributable to Lennar in
2012 were $124.3 million, or $0.56 per diluted share, compared to $30.3
million, or $0.16 per diluted share, in the fourth quarter of 2011. Net
earnings attributable to Lennar for the year ended November30, 2012 were
$679.1 million, or $3.11 per diluted share, compared to $92.2 million, or
$0.48 per diluted share, in 2011.

Stuart Miller, Chief Executive Officer of Lennar Corporation, said, "During
our fourth quarter, the housing industry took further steps toward a sustained
recovery. Low mortgage rates, affordable home prices, reduced foreclosures
and an extremely favorable 'rent vs. own' comparison continue to drive the
recovery. Housing should continue to assume its traditional role in the
broader economic recovery, driving employment upward, increasing consumer
confidence and helping new homeowners accumulate wealth through home
ownership, thus helping to accelerate economic growth."

Mr. Miller continued, "Our fourth quarter reflects the recovery in housing
with solid profitability in all of our business segments. Our homebuilding
sales pace continued to grow with a 32% increase in new orders, while our
homebuilding gross margin percentage increased 410 basis points over last year
to 23.5% and our homebuilding operating margin percentage increased 660 basis
points over last year to 12.2%. Our homebuilding machine continues to improve
and be our primary driver of profitability, fueled by our opportunistic land
acquisitions and increasing operating leverage due to higher absorption per
community and overall deliveries."

"Our financial services segment also had a strong fourth quarter with
operating earnings of $33.2 million, compared to $9.1 million last year. This
business segment continued to benefit from both our growing homebuilding
operations and by participating in the robust refinancing market."

"On the Rialto side of our business, in December 2012, we completed the first
closing of our second real estate fund with initial equity commitments of
approximately $260 million (including $100 million committed by Lennar
Corporation). Rialto has continued to contribute directly to the
profitability of the company while providing our homebuilding segment with
unique opportunities to acquire attractive land parcels. We remain
enthusiastic about Rialto's position in the market and its prospects for
long-term profitability and value creation, which should be enhanced by
continued economic recovery."

"Two other longer term strategies have also continued to develop within the
company and should benefit from economic recovery. We incubated a multifamily
platform that is now maturing into the construction phase with a pipeline
ofover $1 billion to be developed over the next three years. Additionally,
our FivePoint large community development program is well positioned to become
a significant profit generator in the coming years."

Mr. Miller concluded, "As we head into 2013, we are extremely well positioned
to gain market share in a recovering market. We have a strong balance sheet
and seasoned management team, and we will continue to benefit from our
strategic land acquisitions and new community openings. With a beginning
sales backlog value up more than 100% from the prior year, fiscal 2013
promises to be another year of strong profitability."

RESULTS OF OPERATIONS

THREE MONTHS ENDED NOVEMBER 30, 2012 COMPARED TO
THREE MONTHS ENDED NOVEMBER 30, 2011

Lennar Homebuilding
Revenues from home sales increased 41% in the fourth quarter of 2012 to
$1,152.2 million from $816.5 million in the fourth quarter of 2011. Revenues
were higher primarily due to a 32% increase in the number of home deliveries,
excluding unconsolidated entities, and a 7% increase in the average sales
price of homes delivered. New home deliveries, excluding unconsolidated
entities, increased to 4,426 homes in the fourth quarter of 2012 from 3,359
homes in the fourth quarter of 2011. 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 $261,000 in the fourth quarter of
2012 from $243,000 in the same period last year. Sales incentives offered to
homebuyers were $25,800 per home delivered in the fourth quarter of 2012, or
9.0% as a percentage of home sales revenue, compared to $33,900 per home
delivered in the same period last year, or 12.2% as a percentage of home sales
revenue, and $26,100 per home delivered in the third quarter of 2012, or 9.2%
as a percentage of home sales revenue.

Gross margins on home sales were $270.3 million, or 23.5%, in the fourth
quarter of 2012, compared to $158.4 million, or 19.4%, in the fourth quarter
of 2011. Gross margin percentage on home sales improved compared to last year,
primarily due to 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 $3.3 million in the fourth quarter of 2012, compared to $0.8
million in the fourth quarter of 2011.

Selling, general and administrative expenses were $130.1 million in the fourth
quarter of 2012, compared to $112.5 million in the fourth quarter of 2011. As
a percentage of revenues from home sales, selling, general and administrative
expenses improved to 11.3% in the fourth quarter of 2012, from 13.8% in the
fourth quarter of 2011, primarily due to improved operating leverage and lower
advertising costs.

Lennar Homebuilding equity in loss from unconsolidated entities was $12.4
million in the fourth quarter of 2012, primarily related to the Company's
share of operating losses of Lennar Homebuilding unconsolidated entities,
which included $6.6 million of valuation adjustments primarily related to
asset sales at a Lennar Homebuilding unconsolidated entity. This compared to
Lennar Homebuilding equity in loss from unconsolidated entities of $69.2
million in the fourth quarter of 2011, which 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 (expense), net, related to that
unconsolidated entity's net asset distribution. The transaction resulted in a
net pre-tax gain of $4.7 million in the fourth quarter of 2011.

Lennar Homebuilding other income (expense), net, totaled ($2.2) million in the
fourth quarter of 2012, compared to Lennar Homebuilding other income
(expense), net, of $69.7 million in the fourth quarter of 2011, which included
the $62.3 million pre-tax gain related to an unconsolidated entity's net asset
distribution discussed in the previous paragraph.

Lennar Homebuilding interest expense was $50.2 million in the fourth quarter
of 2012 ($26.7 million was included in cost of homes sold, $0.5 million in
cost of land sold and $23.0 million in other interest expense), compared to
$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). Interest expense increased due to an increase in the
Company's outstanding debt and an increase in deliveries, partially offset by
a lower weighted average interest rate.

Lennar Financial Services
Operating earnings for the Lennar Financial Services segment were $33.2
million in the fourth quarter of 2012, compared to $9.1 million in the fourth
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 a significant increase in
refinance transactions and homebuilding deliveries.

Rialto Investments
Operating earnings for the Rialto Investments segment were $4.6 million in the
fourth quarter of 2012 (which included $4.8 million of operating earnings
offset by $0.2 million of net earnings attributable to noncontrolling
interests), compared to operating earnings of $8.0 million (which included
$6.0 million of operating earnings and an add back of $2.0 million of net loss
attributable to noncontrolling interests) in the same period last year.
Revenues in this segment were $36.0 million in the fourth quarter of 2012,
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 $46.5 million in the same period last year.
Revenues decreased primarily due to lower interest income as a result of a
decrease in the portfolio of loans. Expenses in this segment were $29.0
million in the fourth quarter of 2012, which consisted primarily of costs
related to its portfolio operations, loan impairments of $5.4 million
primarily associated with the segment's FDIC loan portfolio (before
noncontrolling interests) and other general and administrative expenses,
compared to expenses of $38.4 million in the same period last year. Expenses
decreased primarily due to a decrease in loan servicing expenses.

Rialto Investments other income (expense), net, was ($6.1) million in the
fourth quarter of 2012, compared to $0.9 million in the same period last year.
Rialto Investments other income (expense), net, includes expenses related to
owning and maintaining real estate owned ("REO"), impairments on REO, gains
from sales of REO, gains (losses) from acquisitions of REO through foreclosure
and rental income.

The segment also had equity in earnings (loss) from unconsolidated entities of
$3.9 million in the fourth quarter of 2012, which primarily related to the
Company's share of earnings from the Rialto Real Estate Fund (the "Fund") of
$4.2 million. During the fourth quarter of 2012, a majority of the remaining
securities in the investment portfolio underlying the AllianceBernstein L.P.
("AB") fund formed under the Federal government's Public-Private Investment
Program ("PPIP") were monetized related to the unwinding of its operations,
resulting in a $12.0 million liquidating distribution. Equity in earnings
(loss) from unconsolidated entities was ($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 AB PPIP fund, partially offset by $2.5 million of
interest income earned by the AB PPIP fund and $2.0 million of equity in
earnings related to the Fund.

Corporate General and Administrative Expenses
Corporate general and administrative expenses were $39.0 million, or 2.9% as a
percentage of total revenues, in the fourth quarter of 2012, compared to $28.5
million, or 3.0% as a percentage of total revenues, in the fourth 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 ($0.8)
million and ($4.8) million, respectively, in the fourth quarter of 2012 and
2011. Net loss attributable to noncontrolling interests during the fourth
quarter of 2012 was primarily attributable to noncontrolling interests related
to the Company's homebuilding operations. 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, of which the Rialto operations related to the FDIC's
interest in the portfolio of real estate loans that the Company acquired in
partnership with the FDIC.

Income Taxes
During the fourth quarter of 2012, the Company concluded that it was more
likely than not that a portion of its deferred tax assets would be utilized.
This conclusion was based on additional positive evidence including actual and
forecasted earnings. Accordingly, during the fourth quarter of 2012, the
Company reversed $44.5 million of its valuation allowance of which the
majority was previously maintained to be utilized in remaining interim periods
of 2012. This reversal was offset by a tax provision of $25.9 million
primarily related to fourth quarter 2012 pre-tax earnings. Therefore, the
Company had an $18.6 million net benefit for income taxes in the fourth
quarter of 2012.

Debt Transaction
During the fourth quarter of 2012, the Company issued $350 million of 4.750%
senior notes due 2022 in a private offering under SEC Rule 144A. The net
proceeds of the sale will be used for working capital and general corporate
purposes, which may include the repayment or repurchase of its senior notes or
other indebtedness.

YEAR ENDED NOVEMBER 30, 2012 COMPARED TO
YEAR ENDED NOVEMBER 30, 2011

Lennar Homebuilding
Revenues from home sales increased 33% in the year ended November30, 2012 to
$3.5 billion from $2.6 billion 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 13,707 homes
in the year ended November30, 2012 from 10,746 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
$255,000 in the year ended November30, 2012 from $244,000 in the same period
last year. Sales incentives offered to homebuyers were $28,300 per home
delivered in the year ended November30, 2012, or 10.0% as a percentage of
home sales revenue, compared to $33,700 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 $793.3 million, or 22.7%, in the year ended
November30, 2012, compared to $523.4 million, or 19.9%, in the year ended
November30, 2011. Gross margin percentage on home sales improved compared to
last year, primarily due to 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 $10.2 million in the year ended November30,
2012 compared to $7.7 million in the year ended November30, 2011.

Selling, general and administrative expenses were $438.7 million in the year
ended November30, 2012, compared to $384.8 million last year, 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 litigation settlement. As a percentage of revenues from
home sales, selling, general and administrative expenses improved to 12.6% in
the year ended November30, 2012, from 14.7% in the year ended November30,
2011, primarily due to improved operating leverage and lower advertising
costs.

Lennar Homebuilding equity in loss from unconsolidated entities was $26.7
million in the year ended November30, 2012, primarily related to the
Company's share of operating losses of Lennar Homebuilding unconsolidated
entities, which included $12.1 million of valuation adjustments
primarilyrelated to asset sales at Lennar Homebuilding unconsolidated
entities. This compared to Lennar Homebuilding equity in loss of $62.7 million
in the year ended November30, 2011, which 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 (expense), net, related to that
unconsolidated entity's net asset distribution. The transaction resulted in a
net pre-tax gain of $4.7 million in the year ended November 30, 2011. In
addition, in the year ended November30, 2011, 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.

Lennar Homebuilding other income (expense), net, totaled $9.3 million in the
year ended November30, 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 $116.1 million in the year ended
November30, 2011, which included the $62.3 million pre-tax gain related to an
unconsolidated entity's net asset distribution discussed in the previous
paragraph, $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 $10.5 million of valuation
adjustments to the Company's investments in Lennar Homebuilding's
unconsolidated entities and $4.9 million of write-offs of other assets in the
year ended November30, 2011.

Lennar Homebuilding interest expense was $181.4 million in the year ended
November30, 2012 ($85.1 million was included in cost of homes sold, $1.9
million in cost of land sold and $94.4 million in other interest expense),
compared to $163.0 million in the year ended November30, 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). Interest expense increased due to an
increase in the Company's outstanding debt and increase in deliveries,
partially offset by a lower weighted average interest rate.

Lennar Financial Services
Operating earnings for the Lennar Financial Services segment were $84.8
million in the year ended November30, 2012, compared to $20.7 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 a
significant increase in refinance transactions and homebuilding deliveries.

Rialto Investments
Operating earnings for the Rialto Investments segment were $26.0 million in
the year ended November30, 2012 (which is comprised of $11.6 million of
operating earnings and an add back of $14.4 million of net loss attributable
to noncontrolling interests), compared to operating earnings of $34.6 million
(which included $63.5 million of operating earnings offset by $28.9 million of
net earnings attributable to noncontrolling interests) in the same period last
year. Revenues in this segment were $138.9 million in the year ended
November30, 2012, 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 $164.7 million in the
same period last year. Revenues decreased primarily due to lower interest
income as a result of a decrease in the portfolio of loans. Expenses in this
segment were $139.0 million in the year ended November30, 2012, which
consisted primarily of costs related to its portfolio operations, loan
impairments of $28.0 million primarily associated with the segment's FDIC loan
portfolio (before noncontrolling interests) and other general and
administrative expenses, compared to expenses of $132.6 million in the same
period last year, which consisted primarily of costs related to its portfolio
operations, loan impairments of $13.8 million primarily associated with the
segment's FDIC loan portfolio (before noncontrolling interests), due diligence
expenses related to both completed and abandoned transactions, and other
general and administrative expenses.

Rialto Investments other income (expense), net, was ($29.8) million in the
year ended November30, 2012, 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. Rialto Investments other income
(expense), net, was $39.2 million in the year ended November30, 2011, 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
$41.5 million in the year ended November30, 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, $6.1 million of
interest income earned by the AB PPIP fund and $21.0 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 ($7.9)
million in the year ended November30, 2011, which included $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 $10.7 million of interest income earned by the AB PPIP fund and $2.9
million of equity in earnings related to the Fund.

Corporate General and Administrative Expenses
Corporate general and administrative expenses were $127.3 million, or 3.1% as
a percentage of total revenues, in the year ended November30, 2012, compared
to $95.3 million, or 3.1% as a percentage of total revenues, in the year ended
November30, 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 ($21.8)
million and $20.3 million, respectively, in the year ended November30, 2012
and 2011. Net loss attributable to noncontrolling interests during the year
ended November30, 2012 was attributable to noncontrolling interests related
to the Company's homebuilding and Rialto Investments operations, of which the
Rialto operations 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 in the year ended
November30, 2011 were related to the Rialto Investments operations, partially
offset by a net loss attributable to noncontrolling interests in the Company's
homebuilding operations.

Deferred Tax Asset Valuation Allowance
During the year ended November30, 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 eleven
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 $491.5 million of its valuation allowance against its
deferred tax assets. As of November30, 2012, the Company's remaining
valuation allowance against its deferred tax assets was $88.8 million, which
is primarily state net operating loss carryforwards, and 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.

Debt Transactions
In October 2012, the Company issued $350 million of 4.750% senior notes due
2022 in a private offering under SEC Rule 144A. The net proceeds of the sale
will be used for working capital and general corporate purposes, which may
include the repayment or repurchase of its senior notes or other indebtedness.

In July 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
were used for working capital and general corporate purposes.

Revolving Credit Facility
In May 2012, the Company entered into a three-year unsecured revolving credit
facility (the "Credit Facility") with certain financial institutions that
expires in May 2015. As of November30, 2012, the maximum aggregate commitment
under the Credit Facility was $525 million, of which $500 million was
committed and $25 million was available through an accordion feature, subject
to additional commitments.

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 fourth quarter earnings will be
held at 11:00 a.m. Eastern Time on Tuesday, January 15, 2013. 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 402-998-1301
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       Years Ended
                               November30,             November30,
                               2012          2011       2012        2011
Revenues:
Lennar Homebuilding            $ 1,192,911   834,185    3,581,232   2,675,124
Lennar Financial Services      121,044       72,009     384,618     255,518
Rialto Investments             35,982        46,460     138,856     164,743
Total revenues                 $ 1,349,937   952,654    4,104,706   3,095,385
Lennar Homebuilding operating  $ 105,980     25,205     253,101     109,044
earnings
Lennar Financial Services      33,229        9,063      84,782      20,729
operating earnings
Rialto Investments operating   4,756         6,036      11,569      63,457
earnings
Corporate general and          (39,042)      (28,530)   (127,338)   (95,256)
administrative expenses
Earnings before income taxes   104,923       11,774     222,114     97,974
Benefit for income taxes       18,597        13,697     435,218     14,570
Net earnings (including net
earnings (loss)                123,520       25,471     657,332     112,544
 attributable to
noncontrolling interests)
Less: Net earnings (loss)
attributable to                (824)         (4,807)    (21,792)    20,345
 noncontrolling interests
Net earnings attributable to   $ 124,344     30,278     679,124     92,199
Lennar
Average shares outstanding:
Basic                          187,459       184,723    186,662     184,541
Diluted                        223,377       195,425    218,695     195,185
Earnings per share:
Basic                          $ 0.65        0.16       3.58        0.49
Diluted                        $ 0.56        0.16       3.11        0.48
Supplemental information:
Interest incurred (1)          $ 58,361      50,406     222,021     201,401
EBIT (2):
Net earnings attributable to   $ 124,344     30,278     679,124     92,199
Lennar
Benefit for income taxes       (18,597)      (13,697)   (435,218)   (14,570)
Interest expense               50,237        43,221     181,385     162,970
EBIT                           $ 155,984     59,802     425,291     240,599



(1) Amount represents interest incurred related to Lennar Homebuilding debt.
    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
(2) 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
                               November30,             November30,
                               2012          2011       2012        2011
Lennar Homebuilding revenues:
Sales of homes                 $ 1,152,194   816,523    3,492,177   2,624,785
Sales of land                  40,717        17,662     89,055      50,339
Total revenues                 1,192,911     834,185    3,581,232   2,675,124
Lennar Homebuilding costs and
expenses:
Cost of homes sold             881,887       658,152    2,698,831   2,101,414
Cost of land sold              37,387        16,826     78,808      42,611
Selling, general and           130,073       112,462    438,727     384,798
administrative
Total costs and expenses       1,049,347     787,440    3,216,366   2,528,823
Lennar Homebuilding operating  143,564       46,745     364,866     146,301
margins
Lennar Homebuilding equity in
loss from                      (12,387)      (69,242)   (26,676)    (62,716)
 unconsolidated entities
Lennar Homebuilding other      (2,155)       69,698     9,264       116,109
income (expense), net
Other interest expense         (23,042)      (21,996)   (94,353)    (90,650)
Lennar Homebuilding operating  $ 105,980     25,205     253,101     109,044
earnings
Lennar Financial Services      $ 121,044     72,009     384,618     255,518
revenues
Lennar Financial Services      87,815        62,946     299,836     234,789
costs and expenses
Lennar Financial Services      $ 33,229      9,063      84,782      20,729
operating earnings
Rialto Investments revenues    $ 35,982      46,460     138,856     164,743
Rialto Investments costs and   29,026        38,399     138,990     132,583
expenses
Rialto Investments equity in
earnings (loss) from           3,905         (2,961)    41,483      (7,914)
 unconsolidated entities
Rialto Investments other       (6,105)       936        (29,780)    39,211
income (expense), net
Rialto Investments operating   $ 4,756       6,036      11,569      63,457
earnings





LENNAR CORPORATION AND SUBSIDIARIES
Summary of Deliveries and New Orders
(Dollars in thousands)
(unaudited)
                  Three Months Ended              Years Ended
                  November30,                    November30,
                  2012               2011         2012           2011
Deliveries -
Homes:
East              1,689              1,413        5,440          4,576
Central           662                474          2,154          1,661
West              740                580          2,301          1,846
Southeast Florida 530                331          1,314          904
Houston           593                466          1,917          1,411
Other             229                111          676            447
Total             4,443              3,375        13,802         10,845
Of the total home deliveries listed above, 17 and 95, respectively, represent
home deliveries from unconsolidated entities for the three months and year
ended November 30, 2012, compared to 16 and 99 home deliveries, respectively,
from unconsolidated entities in the same periods last year.
Deliveries -
Dollar Value:
East              $   412,691          313,706      1,290,549      1,009,750
Central           152,578              100,096      487,317        355,350
West              235,564              182,182      728,092        598,202
Southeast Florida 140,097              85,824       353,841        239,607
Houston           142,413              106,369      449,580        321,908
Other             80,533               37,638       234,731        166,186
Total             $   1,163,876        825,815      3,544,110      2,691,003
Of the total dollar value of home deliveries listed above, $11.7 million and
$51.9 million, respectively, represent the dollar value of home deliveries
from unconsolidated entities for the three months and year ended November 30,
2012, compared to $9.3 million and $66.2 million dollar value of home
deliveries, respectively, from unconsolidated entities in the same periods
last year.
New Orders -
Homes:
East              1,526              1,258        5,868          4,769
Central           575                402          2,498          1,716
West              629                526          2,711          1,965
Southeast Florida 474                303          1,617          947
Houston           493                418          2,078          1,521
Other             286                120          912            494
Total             3,983              3,027        15,684         11,412
Of the total new orders listed above, 14 and 98, respectively, represent new
orders from unconsolidated entities for the three months and year ended
November 30, 2012, compared to 12 and 98 new orders, respectively, from
unconsolidated entities in the same periods last year.
New Orders -
Dollar Value:
East              $   376,999          275,378      1,438,268      1,051,624
Central           144,712              84,428       591,677        367,274
West              200,953              162,165      834,426        638,418
Southeast Florida 130,972              79,762       441,311        254,632
Houston           120,897              94,465       505,579        342,836
Other             100,758              48,500       333,232        189,658
Total             $   1,075,291        744,698      4,144,493      2,844,442
Of the total dollar value of new orders listed above, $10.6 million and $54.4
million, respectively, represent the dollar value of new orders from
unconsolidated entities for the three months and year ended November 30, 2012,
compared to $6.7 million and $65.1 million dollar value of new orders,
respectively, from unconsolidated entities in the same periods last year.



LENNAR CORPORATION AND SUBSIDIARIES
Summary of Backlog
(Dollars in thousands)
(unaudited)
                                    November 30,
                                    2012                   2011
Backlog - Homes:
East                                1,376                  948
Central                             653                    309
West                                708                    298
Southeast Florida                   469                    166
Houston                             516                    355
Other                               331                    95
Total                               4,053                  2,171
Of the total homes in backlog listed above, 5 homes represents the backlog
from unconsolidated entities at November 30, 2012, compared to 2 homes in
backlog from unconsolidated entities at November 30, 2011.
Backlog - Dollar Value:
East                        $       368,361                220,974
Central                     168,912                        65,256
West                        202,959                        97,292
Southeast Florida           141,146                        52,013
Houston                     135,282                        79,800
Other                       143,725                        45,324
Total                       $       1,160,385              560,659



Of the total dollar value of homes in backlog listed above, $3.5 million
represents the backlog dollar value from unconsolidated entities at
November30, 2012, compared to $1.0 million of backlog dollar value from
unconsolidated entities at November30, 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
                         Florida in the East reportable segment excludes
(1)                      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,  November 30,
                                                    2012          2011
Lennar Homebuilding debt                            $ 4,005,051   3,362,759
Total stockholders' equity                          3,414,764     2,696,468
Total capital                                       $ 7,419,815   6,059,227
Lennar Homebuilding debt to total capital           54.0%         55.5%
Lennar Homebuilding debt                            $ 4,005,051   3,362,759
Less: Lennar Homebuilding cash and cash equivalents 1,146,867     1,024,212
Net Lennar Homebuilding debt                        $ 2,858,184   2,338,547
Net Lennar Homebuilding debt to total capital (1)   45.6%         46.4%

    Net Lennar Homebuilding debt to capital consists of net Lennar
(1) 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

Website: http://www.lennar.com
Contact: Allison Bober, Investor Relations, Lennar Corporation,
+1-305-485-2038
 
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