Lennar Reports Second Quarter EPS of $0.61

                  Lennar Reports Second Quarter EPS of $0.61

PR Newswire

MIAMI, June 25, 2013

MIAMI, June 25, 2013 /PRNewswire/ --

  oNet earnings of $137.4 million, or $0.61 per diluted share, which included
    a partial reversal of the state deferred tax asset valuation allowance of
    $41.3 million, or $0.18 per diluted share, compared to net earnings of
    $452.7 million, or $2.06 per diluted share, which included a partial
    reversal of the deferred tax asset valuation allowance of $403.0 million,
    or $1.85 per diluted share
  oDeliveries of 4,464 homes – up 39%
  oNew orders of 5,705 homes – up 27%; cancellation rate of 14%
  oBacklog of 6,163 homes – up 55%; backlog dollar value of $1.9 billion – up
    76%
  oRevenues of $1.4 billion – up 53%
  oGross margin on home sales of 24.1% – improved 160 basis points
  oS,G&A expenses as a % of revenues from home sales of 10.9% – improved 230
    basis points
  oOperating margin on home sales of 13.3% – improved 410 basis points
  oLennar Homebuilding operating earnings of $158.4 million, compared to
    $55.8 million
  oLennar Financial Services operating earnings of $29.2 million, compared to
    $18.0 million
  oRialto Investments operating earnings totaled $2.8 million (net of $5.7
    million of net earnings attributable to noncontrolling interests),
    compared to $4.3 million (net of $3.2 million of net earnings attributable
    to noncontrolling interests)
  oLennar Homebuilding cash and cash equivalents of $728 million
  oLennar Homebuilding debt to total capital, net of cash and cash
    equivalents, of 51.5%
  oNo outstanding borrowings under the $525 million credit facility, which in
    June 2013 was increased to $950 million and extended to June 2017

Lennar Corporation (NYSE: LEN and LEN.B),  one of  the nation's largest
homebuilders, today reported results for its second quarter ended May31,
2013. Second quarter net earnings attributable to Lennar in 2013 were $137.4
million, or $0.61 per diluted share, which included a partial reversal of the
state deferred tax asset valuation allowance of $41.3 million, or $0.18 per
diluted share, compared to second quarter 2012 net earnings attributable to
Lennar of $452.7 million, or $2.06 per diluted share, which included a partial
reversal of the deferred tax asset valuation allowance of $403.0 million, or
$1.85 per diluted share.

Stuart Miller, Chief Executive Officer of Lennar Corporation, said, "Against
the backdrop of recent investor concerns over mortgage rate increases, we
believe that our second quarter results together with real time feedback from
our field associates continue to point towards a solid housing recovery. Our
second quarter results reflect significant improvement in all of our key
homebuilding and financial services metrics. Demand in all of our markets
continues to outpace supply which is constrained by limited land availability
and fewer competing homebuilders. At the same time, affordability remains
high and despite recent interest rate increases, we have seen very little
impact on sales or pricing."

"As we have discussed on prior calls, conflicting macroeconomic data and
interest rates reverting to normal levels can create headline risk to an
otherwise straight-line recovery. However, the fundamentals of the
homebuilding industry continue to be primarily driven by high affordability
levels, favorable monthly payment comparisons to rentals, and overall supply
shortages."

Mr. Miller continued, "New home production lagged population growth and
household formation during the recent economic downturn. New development
activity is just starting to accelerate, but land availability will continue
to be a constraint for some time, given the length of the downturn.
Fortunately, Lennar has been an active buyer of land over the last several
years and we are well positioned to succeed in this environment."

"During the second quarter, our gross margin percentage on home sales improved
to 24.1%, while our S, G&A % of home sales came in under 11% for the first
time since our third quarter of 2006. Our operating leverage should continue
to improve, driven by our higher new orders . During the quarter, our El Toro
joint venture, which is managed by FivePoint Communities, contributed $13.0
million of earnings to our bottom line. Meanwhile, our financial services
business generated $29.2 million of earnings during the quarter, as the
refinance business continued its strong performance."

Mr. Miller concluded, "Our homebuilding and financial services businesses are
performing at a high level, while our ancillary businesses continue to mature.
With a strong backlog at quarter-end, growing demand, and the next phase of
the housing recovery continuing to show strength, we are well positioned for
another year of solid housing profitability."

RESULTS OF OPERATIONS

THREE MONTHS ENDED MAY 31, 2013 COMPARED TO
THREE MONTHS ENDED MAY 31, 2012

Lennar Homebuilding
Revenues from home sales increased 58% in the second quarter of 2013 to
$1,256.3 million from $796.4 million in the second quarter of 2012. Revenues
were higher primarily due to a 39% increase in the number of home deliveries,
excluding unconsolidated entities, and a 13% increase in the average sales
price of homes delivered. New home deliveries, excluding unconsolidated
entities, increased to 4,449 homes in the second quarter of 2013 from 3,192
homes in the second quarter of 2012. 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 $283,000 in the second
quarter of 2013 from $250,000 in the same period last year. Sales incentives
offered to homebuyers were $20,200 per home delivered in the second quarter of
2013, or 6.7% as a percentage of home sales revenue, compared to $29,800 per
home delivered in the same period last year, or 10.7% as a percentage of home
sales revenue, and $23,300 per home delivered in the first quarter of 2013, or
8.0% as a percentage of home sales revenue.

Gross margins on home sales were $303.3 million, or 24.1%, in the second
quarter of 2013, compared to $179.0 million, or 22.5%, in the second quarter
of 2012. Gross margin percentage on home sales improved compared to last year,
primarily due to a greater percentage of deliveries from the Company's new
higher margin communities (communities where land was acquired subsequent to
November 30, 2008), a decrease in sales incentives offered to homebuyers as a
percentage of revenue from home sales and an increase in the average sales
price of homes delivered, partially offset by an increase in materials, labor
and land costs. Gross profits on land sales totaled $6.1 million in the second
quarter of 2013, compared to $2.7 million in the second quarter of 2012.

Selling, general and administrative expenses were $136.6 million in the second
quarter of 2013, compared to $105.4 million in the second quarter of 2012. As
a percentage of revenues from home sales, selling, general and administrative
expenses improved to 10.9% in the second quarter of 2013, from 13.2% in the
second quarter of 2012, due to improved operating leverage as a result of
increased absorption per community.

Lennar Homebuilding equity in earnings (loss) from unconsolidated entities was
$13.5 million in the second quarter of 2013, related to the Company's share of
operating earnings of Lennar Homebuilding unconsolidated entities, primarily
as a result of sales of homesites to third parties by one unconsolidated
entity that resulted in $13.0 million of equity in earnings. This compared to
Lennar Homebuilding equity in earnings (loss) of ($9.4) million in the second
quarter of 2012, which included $5.4 million of valuation adjustments related
to asset sales at Lennar Homebuilding's unconsolidated entities.

Lennar Homebuilding other income (expense), net, totaled ($2.7) million in the
second quarter of 2013, compared to Lennar Homebuilding other income
(expense), net, of $12.8 million in the second quarter of 2012, primarily due
to a $15.0 million gain on the sale of an operating property.

Lennar Homebuilding interest expense was $54.8 million in the second quarter
of 2013 ($29.0 million was included in cost of homes sold, $0.7 million in
cost of land sold and $25.1 million in other interest expense), compared to
$44.8 million in the second quarter of 2012 ($20.4 million was included in
cost of homes sold, $0.6 million in cost of land sold and $23.8 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 compared to the same period last year.

Lennar Financial Services
Operating earnings for the Lennar Financial Services segment were $29.2
million in the second quarter of 2013, compared to $18.0 million in the second
quarter of 2012. The increase in profitability in the segment's mortgage and
title operations was primarily due to an increase in thevolume of
transactions and a higher profit per transaction.

Rialto Investments
Operating earnings for the Rialto Investments segment were $2.8 million in the
second quarter of 2013 (which included $8.5 million of operating earnings
offset by $5.7 million of net earnings attributable to noncontrolling
interests), compared to operating earnings of $4.3 million (which included
$7.5 million of operating earnings offset by $3.2 million of net earnings
attributable to noncontrolling interests) in the same period last year.
Revenues in this segment were $25.7 million in the second quarter of 2013,
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 $33.5 million in the same period last year.
Revenues decreased primarily due to lower interest income as a result of a
decrease in the segment's portfolio of loans. Expenses in this segment were
$28.3 million in the second quarter of 2013, which consisted primarily of
costs related to its portfolio operations, loan impairments of $3.5 million
primarily associated with the segment's FDIC loan portfolio (before
noncontrolling interests) and other general and administrative expenses,
compared to expenses of $30.2 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 in the same period last year. Expenses decreased primarily due to a
decrease in loan servicing expenses.

Rialto Investments equity in earnings from unconsolidated entities was $4.5
million in the second quarter of 2013, which primarily included $4.3 million
of equity in earnings related to the Company's share of earnings from the
Rialto real estate funds. Equity in earnings from unconsolidated entities was
$5.6 million in the second quarter of 2012, which included $2.5 million of
interest income earned by the AllianceBernstein L.P. ("AB") fund formed under
the Federal government's Public-Private Investment Program ("PPIP") and $3.0
million of equity in earnings related to the Rialto Real Estate Fund (the
"Fund I").

The segment also had other income (expense), net, of $6.6 million in the
second quarter of 2013, which consisted primarily of realized gains on the
sale of real estate owned ("REO") of $18.5 million and rental income,
partially offset by expenses related to owning and maintaining REO and REO
impairments. Rialto Investments other income (expense), net, was ($1.4)
million in the second quarter of 2012, which consisted primarily of expenses
related to owning and maintaining REO and impairments of REO, partially offset
by realized gains on the sale of REO of $8.4 million and rental income.

Corporate General and Administrative Expenses
Corporate general and administrative expenses were $33.9 million, or 2.4% as a
percentage of total revenues, in the second quarter of 2013, compared to $29.2
million, or 3.1% as a percentage of total revenues, in the second quarter of
2012. The increase in corporate general and administrative expenses was
primarily due to an increase in personnel related expenses as a result of
variable compensation expense.

Noncontrolling Interests
Net earnings attributable to noncontrolling interests were $5.4 million and
$1.7 million, respectively, in the second quarter of 2013 and 2012. Net
earnings attributable to noncontrolling interests during the second quarter of
2013 were primarily related to the FDIC's interest in the portfolio of real
estate loans that the Company acquired in partnership with the FDIC. Net
earnings attributable to noncontrolling interests during the second quarter of
2012 were primarily related to the FDIC's interest in the portfolio of real
estate loans that the Company acquired in partnership with the FDIC, partially
offset by a net loss attributable to noncontrolling interests in the Company's
homebuilding operations.

Income Taxes
During the second quarter of 2013, the Company concluded that it was more
likely than not that a portion of its state deferred tax assets would be
utilized. This conclusion was based on additional positive evidence including
actual and forecasted earnings, as well as the Company generating cumulative
pre-tax earnings over a rolling four year period including the second quarter
of 2013. Accordingly, during the second quarter of 2013, the Company reversed
$41.3 million of its valuation allowance against its state deferred tax
assets. This reversal was offset by a tax provision of $60.8 million primarily
related to second quarter 2013 pre-tax earnings. Therefore, the Company had a
$19.5 million provision for income taxes in the second quarter of 2013. As of
May31, 2013, the Company's remaining valuation allowance against its deferred
tax assets was $22.5 million, which is primarily related to state net
operating loss carryforwards that may expire due to short carryforward
periods. During the second quarter of 2012, the Company reversed $403.0
million of its valuation allowance against its deferred tax assets.

Debt Transactions
During the second quarter of 2013, the Company issued an additional $50
million of the 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 repayment or repurchase of its
other outstanding senior notes. In addition, during the second quarter of
2013, the Company retired $63.0 million of the 5.95% Senior Notes due 2013 for
100% of the outstanding principal amount plus accrued and unpaid interest as
of the maturity date.

Credit Facility
In June 2013, the Company increased the aggregate principal amount of its
unsecured revolving credit facility (the "Credit Facility") to $950 million,
which includes a $33 million accordion feature, subject to additional
commitments, and extended the Credit Facility's maturity date to June 2017.
The proceeds available under the Credit Facility may be used for working
capital and general corporate purposes. The credit agreement also provides
that up to $500 million in commitments may be used for letters of credit.
Additionally, the Company terminated its $150 million Letter of Credit and
Reimbursement Agreementand its $50 million Letter of Credit and Reimbursement
Agreement.

SIX MONTHS ENDED MAY 31, 2013 COMPARED TO
SIX MONTHS ENDED MAY 31, 2012

Lennar Homebuilding
Revenues from home sales increased 50% in the six months ended May 31, 2013 to
$2.1 billion from $1.4 billion in2012. Revenues were higher primarily due to
a 35% increase in the number of home deliveries, excluding unconsolidated
entities, and a 12% increase in the average sales price of homes delivered.
New home deliveries, excluding unconsolidated entities, increased to 7,623
homes in the six months ended May 31, 2013 from 5,664 homes in the same period
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 $277,000 in the six months ended May 31, 2013 from
$248,000 in the six months ended May 31, 2012. Sales incentives offered to
homebuyers were $21,500 per home delivered in the six months ended May 31,
2013, or 7.2% as a percentage of home sales revenue, compared to $31,700 per
home delivered in the same period last year, or 11.3% as a percentage of home
sales revenue.

Gross margins on home sales were $492.3 million, or 23.3%, in the six months
ended May 31, 2013, compared to $306.8 million, or 21.8%, in the six months
ended May 31, 2012. Gross margin percentage on home sales improved compared to
last year, primarily due to a greater percentage of deliveries from the
Company's new higher margin communities (communities where land was acquired
subsequent to November 30, 2008), 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, partially offset by an increase in
materials, labor and land costs. Gross profits on land sales totaled $9.1
million in the six months ended May 31, 2013, compared to $5.6 million in the
six months ended May 31, 2012.

Selling, general and administrative expenses were $238.9 million in the six
months ended May 31, 2013, compared to $196.5 million in the same period last
year. As a percentage of revenues from home sales, selling, general and
administrative expenses improved to 11.3% in the six months ended May 31,
2013, from 14.0% in the six months ended May 31, 2012, due to improved
operating leverage as a result of increased absorption per community.

Lennar Homebuilding equity in earnings (loss) from unconsolidated entities was
$12.6 million in the six months ended May 31, 2013, related to the Company's
share of operating earnings of Lennar Homebuilding unconsolidated entities,
primarily as a result of sales of homesites to third parties by one
unconsolidated entity that resulted in $13.0 million of equity in earnings.
This compared to Lennar Homebuilding equity in earnings (loss) of ($8.3)
million in the six months ended May 31, 2012, which included $5.4 million of
valuation adjustments related to asset sales at Lennar Homebuilding's
unconsolidated entities.

Lennar Homebuilding other income, net, totaled $1.6 million in the six months
ended May 31, 2013, compared to $16.8 million in the six months ended May 31,
2012, which included a $15.0 million gain on the sale of an operating
property.

Lennar Homebuilding interest expense was $101.1 million in the six months
ended May 31, 2013 ($48.4 million was included in cost of homes sold, $1.6
million in cost of land sold and $51.1 million in other interest expense),
compared to $86.1 million in the six months ended May 31, 2012 ($36.5 million
was included in cost of homes sold, $1.0 million in cost of land sold and
$48.6 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 compared to the
same period last year.

Lennar Financial Services
Operating earnings for the Lennar Financial Services segment were $45.3
million in the six months ended May 31, 2013, compared to $26.2 million in the
six months ended May 31, 2012. The increase in profitability in the segment's
mortgage and title operations was primarily due to an increase in the volume
of transactions and a higher profit per transaction.

Rialto Investments
Operating earnings for the Rialto Investments segment were $4.5 million in the
six months ended May 31, 2013 (which included $9.9 million of operating
earnings offset by $5.4 million of net earnings attributable to noncontrolling
interests), compared to operating earnings of $13.7 million (which included
$12.5 million of operating earnings and an add back of $1.2 million of net
loss attributable to noncontrolling interests) in the same period last year.
Revenues in this segment were $51.3 million in the six months ended May 31,
2013, 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 $65.7 million in the same period
last year. Revenues decreased primarily due to lower interest income as a
result of a decrease in the segment's portfolio of loans. Expenses in this
segment were $60.1 million in the six months ended May 31, 2013, which
consisted primarily of costs related to its portfolio operations, loan
impairments of $10.6 million primarily associated with the segment's FDIC loan
portfolio (before noncontrolling interests) and other general and
administrative expenses, compared to expenses of $63.6 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 in the same period last year.
Expenses decreased primarily due to a decrease in loan servicing expenses.

Rialto Investments equity in earnings from unconsolidated entities was $10.7
million in the six months ended May 31, 2013, which was related to the
Company's share of earnings from the Rialto real estate funds. Equity in
earnings from unconsolidated entities was $24.0 million in the six months
ended May 31, 2012, which included $8.9 million of net gains primarily related
to unrealized gains for the Company's share of the mark-to-market adjustments
of the investment portfolio underlying the AB PPIP fund, $5.1 million of
interest income earned by the AB PPIP fund and $10.6 million of equity in
earnings related to the Company's share of earnings from Fund I.

The segment also had other income (expense), net, of $8.0 million in the six
months ended May 31, 2013, which consisted primarily of realized gains on the
sale of REO of $27.2 million and rental income, partially offset by expenses
related to owning and maintaining REO and REO impairments. Rialto Investments
other income (expense), net, was ($13.6) million in the six months ended May
31, 2012, which consisted primarily of expenses related to owning and
maintaining REO and impairments of REO, partially offset by realized gains on
the sale of REO of $8.4 million, unrealized gains from acquisition of REO
through foreclosure and rental income.

Corporate General and Administrative Expenses
Corporate general and administrative expenses were $65.1 million, or 2.7% as a
percentage of total revenues, in the six months ended May 31, 2013, compared
to $56.0 million, or 3.4% as a percentage of total revenues, in the six months
ended May 31, 2012. The increase in corporate general and administrative
expenses was primarily due to an increase in personnel related expenses as a
result of variable compensation expense.

Noncontrolling Interests
Net earnings (loss) attributable to noncontrolling interests were $4.8 million
and ($5.3) million, respectively, in the six months ended May 31, 2013 and
2012, primarily attributable to noncontrolling interests related to the
Company's homebuilding and Rialto Investments operations.

Income Taxes
During the six months ended May 31, 2013, the Company concluded that it was
more likely than not that a portion of its state deferred tax assets would be
utilized. This conclusion was based on additional positive evidence including
actual and forecasted earnings, as well as the Company generating cumulative
pre-tax earnings over a rolling four year period including the second quarter
of 2013. Accordingly, during the six months ended May 31, 2013, the Company
reversed $66.4 million of its valuation allowance against its state deferred
tax assets. This reversal was offset by a tax provision of $82.3 million
primarily related to pre-tax earnings for the six months ended May 31, 2013.
Therefore, the Company had a $15.9 million provision for income taxes in the
six months ended May 31, 2013. During the six months ended May 31, 2012, the
Company reversed $403.0 million of its valuation allowance against its
deferred tax assets.

Lennar Corporation, founded in 1954, is one of the nation's largest 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 a leading investment and asset management company
focused on creating valueby investing in and managing real estate properties,
loans and securities. 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.

Note Regarding Forward-Looking Statements: 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, including statements
regarding our expectations regarding the housing recovery, development
activity and land availability, our profitability, our operating leverage and
new home orders. 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. Accordingly, these forward-looking statements
should be evaluated with consideration given to the many risks and
uncertainties inherent in our business that could cause actual results and
events to differ materially from those in the forward-looking statements.
Important factors that could cause such differences include, a delay in the
recovery of real estate markets across the nation, or any further downturn in
such markets; increases in operating costs, including costs related to real
estate taxes, construction materials, labor and insurance, and our ability to
manage our cost structure; a decline in the value of the land and home
inventories we maintain or possible future write-downs of the book value of
our real estate assets; natural disasters and other unforeseen damage, for
which our insurance may not provide adequate coverage; changes in laws,
regulations or the regulatory environment affecting our business, and the
risks described in our filings with the Securities and Exchange Commission,
including our Form 10-K for the fiscal year ended November 30, 2012. We
undertake no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events, or
otherwise.

A conference call to discuss the Company's second quarter earnings will be
held at 11:00 a.m. Eastern Time on Tuesday, June 25, 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.comfor 90 days. A replay of
the conference call will also be available later that day by calling
402-220-4881 and entering 5723593 as the confirmation number.





LENNAR CORPORATION AND SUBSIDIARIES

Selected Revenues and Operating Information

(In thousands, except per share amounts)

(unaudited)
                    Three Months Ended                Six Months Ended
                    May 31,                           May 31,
                    2013                2012          2013          2012
Revenues:
Lennar Homebuilding $   1,281,344       808,088       2,149,788     1,432,521
Lennar Financial    119,096             88,595        214,976       156,810
Services
Rialto Investments  25,684              33,472        51,306        65,680
Total revenues      $   1,426,124       930,155       2,416,070     1,655,011
Lennar Homebuilding $   158,440         55,820        225,578       75,809
operating earnings
Lennar Financial
Services operating  29,172              17,980        45,274        26,230
earnings
Rialto Investments  8,530               7,471         9,881         12,527
operating earnings
Corporate general
and administrative  (33,853)            (29,168)      (65,123)      (56,010)
expenses
Earnings before     162,289             52,103        215,610       58,556
income taxes
(Provision) benefit (19,491)            402,321       (15,854)      403,845
for income taxes
Net earnings
(including net
earnings (loss)     142,798             454,424       199,756       462,401
attributable to
noncontrolling
interests)
Less: Net earnings
(loss) attributable 5,362               1,721         4,828         (5,270)
to noncontrolling
interests
Net earnings
attributable to     $   137,436         452,703       194,928       467,671
Lennar
Average shares
outstanding:
Basic               190,010             186,432       189,779       186,214
Diluted             226,655             218,011       226,336       215,912
Earnings per share:
Basic               $   0.71            2.39          1.01          2.47
Diluted (1)         $   0.61            2.06          0.88          2.16
Supplemental
information:
Interest incurred   $   65,055          53,805        126,431       107,146
(2)
EBIT (3):
Net earnings
attributable to     $   137,436         452,703       194,928       467,671
Lennar
Provision (benefit) 19,491              (402,321)     15,854        (403,845)
for income taxes
Interest expense    54,831              44,810        101,120       86,149
EBIT                $   211,758         95,192        311,902       149,975
(1) Diluted earnings per share includes an add back of interest of $2.8
million and $5.7 million, respectively, for the three and six months ended May
31, 2013, and $2.9 million and $5.8 million, respectively, for the three and
six months ended May 31, 2012, related to the Company's 2.00% and 3.25%
convertible senior notes.
(2) Amount represents interest incurred related to Lennar Homebuilding debt.
(3) 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     Six Months Ended
                                   May 31,                May 31,
                                   2013         2012      2013       2012
Lennar Homebuilding revenues:
Sales of homes                     $ 1,256,267  796,445   2,111,348  1,407,145
Sales of land                      25,077       11,643    38,440     25,376
Total revenues                     1,281,344    808,088   2,149,788  1,432,521
Lennar Homebuilding costs and
expenses:
Cost of homes sold                 952,983      617,495   1,619,067  1,100,317
Cost of land sold                  18,979       8,959     29,327     19,795
Selling, general and               136,608      105,388   238,850    196,475
administrative
Total costs and expenses           1,108,570    731,842   1,887,244  1,316,587
Lennar Homebuilding operating      172,774      76,246    262,544    115,934
margins
Lennar Homebuilding equity in
earnings (loss) from               13,461       (9,381)   12,594     (8,298)
unconsolidated entities
Lennar Homebuilding other income   (2,686)      12,758    1,580      16,825
(expense), net
Other interest expense             (25,109)     (23,803)  (51,140)   (48,652)
Lennar Homebuilding operating      $ 158,440    55,820    225,578    75,809
earnings
Lennar Financial Services revenues $ 119,096    88,595    214,976    156,810
Lennar Financial Services costs    89,924       70,615    169,702    130,580
and expenses
Lennar Financial Services          $ 29,172     17,980    45,274     26,230
operating earnings
Rialto Investments revenues        $ 25,684     33,472    51,306     65,680
Rialto Investments costs and       28,305       30,198    60,076     63,568
expenses
Rialto Investments equity in
earnings from unconsolidated       4,505        5,569     10,678     24,027
entities
Rialto Investments other income    6,646        (1,372)   7,973      (13,612)
(expense), net
Rialto Investments operating       $ 8,530      7,471     9,881      12,527
earnings





LENNAR CORPORATION AND SUBSIDIARIES

Summary of Deliveries and New Orders

(Dollars in thousands)

(unaudited)
                   Three Months Ended               Six Months Ended
                   May 31,                          May 31,
                   2013               2012          2013           2012
Deliveries -
Homes:
East               1,603              1,350         2,743          2,412
Central            702                493           1,277          880
West               849                532           1,448          926
Southeast          453                262           718            449
Florida
Houston            538                422           921            774
Other              319                163           543            263
Total              4,464              3,222         7,650          5,704
Of the total home deliveries listed above, 15 and 27, respectively, represent
home deliveries from unconsolidated entities for the three and six months
ended May 31, 2013, compared to 30 and 40, respectively, of home deliveries
from unconsolidated entities in the same periods last year.
Deliveries -
Dollar Value:
East               $   420,368        312,239       708,573        549,260
Central            180,676            112,460       328,633        197,387
West               277,940            164,363       458,689        290,378
Southeast          123,883            70,879        195,734        120,667
Florida
Houston            135,812            96,626        234,807        177,394
Other              127,311            52,253        203,148        88,356
Total              $   1,265,990      808,820       2,129,584      1,423,442
Of the total dollar value of home deliveries listed above, $9.7 million and
$18.2 million, respectively, represent the dollar value of home deliveries
from unconsolidated entities for the three and six months ended May 31, 2013,
compared to $12.4 million and $16.3 million, respectively, of dollar value of
home deliveries from unconsolidated entities in the same period last year.
New Orders -
Homes:
East               2,385              1,605         3,937          2,851
Central            862                798           1,517          1,279
West               909                767           1,487          1,282
Southeast          463                446           964            671
Florida
Houston            716                626           1,233          1,050
Other              370                239           622            370
Total              5,705              4,481         9,760          7,503
Of the total new orders listed above, 19 and 32, respectively, represent new
orders from unconsolidated entities for the three and six months ended May
31, 2013, compared to 26 and 49, respectively, of new orders from
unconsolidated entities in the same periods last year.
New Orders -
Dollar Value:
East               $   650,514        391,825       1,063,283      684,315
Central            230,866            184,843       405,958        288,894
West               328,565            225,099       518,662        382,697
Southeast          137,635            113,002       288,308        175,464
Florida
Houston            189,482            155,091       327,328        253,038
Other              136,456            89,112        227,560        137,898
Total              $   1,673,518      1,158,972     2,831,099      1,922,306
Of the total dollar value of new orders listed above, $12.7 million and $21.3
million, respectively, represent the dollar value of new orders from
unconsolidated entities for the three and six months ended May 31, 2013,
compared to $11.3 million and $20.2 million, respectively, of 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)
                                     May 31,
                                     2013                     2012
Backlog - Homes:
East                                 2,570                    1,387
Central                              893                      708
West                                 747                      654
Southeast Florida                    715                      388
Houston                              828                      631
Other                                410                      202
Total                                6,163                    3,970
Of the total homes in backlog listed above, 10 homes represent the backlog
from unconsolidated entities at May 31, 2013, compared to 11 homes in backlog
from unconsolidated entities at May 31, 2012.
Backlog - Dollar Value:
East                       $         723,768                  356,879
Central                    246,142                            156,407
West                       263,624                            189,645
Southeast Florida          233,857                            108,294
Houston                    227,906                            155,357
Other                      167,874                            94,866
Total                      $         1,863,171                1,061,448
Of the total dollar value of homes in backlog listed above, $6.6 million
represents the backlog dollar value from unconsolidated entities at May 31,
2013, compared to $4.9 million of backlog dollar value from unconsolidated
entities at May 31, 2012.
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, Tennessee and Washington
(1) Florida in the East reportable segment excludes Southeast Florida, which
is its own reportable segment.
(2) Texas in the Central reportable segment excludes Houston, Texas, which is
its own reportable segment.





LENNAR CORPORATION AND SUBSIDIARIES

Supplemental Data

(Dollars in thousands)

(unaudited)
                      May31,              November30,          May31,
                      2013                 2012                  2012
Lennar Homebuilding   $   4,538,344        4,005,051             3,469,616
debt
Total stockholders'   3,585,602            3,414,764             3,177,378
equity
Total capital         $   8,123,946        7,419,815             6,646,994
Lennar Homebuilding   55.9%                54.0%                 52.2%
debt to total capital
Lennar Homebuilding   $   4,538,344        4,005,051             3,469,616
debt
Less: Lennar
Homebuilding cash and 727,505              1,146,867             667,111
cash equivalents
Net Lennar            $   3,810,839        2,858,184             2,802,505
Homebuilding debt
Net Lennar
Homebuilding debt to  51.5%                45.6%                 46.9%
total capital (1)
(1) Net Lennar Homebuilding debt to capital consists of net Lennar
Homebuilding debt (Lennar Homebuilding debt less Lennar Homebuilding cash and
cash equivalents) divided by total capital (net Lennar Homebuilding debt plus
total stockholders' equity).



SOURCE Lennar Corporation

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