<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _______________ to ________________.
Commission File Number 1-5899
U.S. HOME CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 21-0718930
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1800 West Loop South, Houston, Texas 77027
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (713) 877-2311
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report.)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days. YES X NO
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a
plan confirmed by a court. YES X NO
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Class Outstanding at April 30, 1995
Common stock, $.01 par value 11,230,923 shares
<PAGE> 2
U.S. HOME CORPORATION
_____________________
INDEX
_____
Page
Number
Part I. Financial Information
Item 1. Financial Statements
Consolidated Condensed Balance
Sheets--March 31, 1995 and
December 31, 1994 3
Consolidated Condensed Statements
of Operations--Three Months Ended
March 31, 1995 and 1994 5
Consolidated Condensed Statements
of Cash Flows --Three Months Ended
March 31, 1995 and 1994 7
Notes to Consolidated Condensed
Financial Statements 8
Review by Independent Public Accountants 11
Report of Independent Public Accountants 12
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations 13
Part II. Other Information
Item 5. Other Information 18
Item 6. Exhibits and Reports on Form 8-K 18
<PAGE> 3
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
U.S. HOME CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in Thousands)
ASSETS
______
March 31, December 31,
1995 1994
----------- -----------
(Unaudited)
HOUSING:
Cash (including restricted funds) $ 899 $ 1,148
Receivables, net 36,428 22,219
Single-family housing inventories 583,533 576,779
Option deposits on real estate 55,045 53,621
Deferred tax asset 9,285 13,727
Other assets 43,497 41,869
_________ ________
728,687 709,363
_________ ________
FINANCIAL SERVICES:
Cash (including restricted funds) 5,447 5,567
Residential mortgage loans 21,443 24,672
Other assets 7,842 8,349
_________ ________
34,732 38,588
_________ ________
$ 763,419 $747,951
========= ========
The accompanying notes are an integral part of these balance sheets.
<PAGE> 4
U.S. HOME CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in Thousands)
LIABILITIES AND STOCKHOLDERS' EQUITY
____________________________________
March 31, December 31,
1995 1994
____________ ___________
(Unaudited)
HOUSING:
Current Liabilities -
Short-term debt $ 28,078 $ 8,642
Current maturities of long-term debt 9,863 10,572
Accounts payable 80,339 85,581
Accrued expenses and other
current liabilities 42,360 40,497
________ ________
160,640 145,292
Long-Term Debt 289,691 292,666
________ ________
450,331 437,958
________ ________
FINANCIAL SERVICES:
Current Liabilities -
Short-term debt 4,505 10,014
Accrued expenses and other
current liabilities 7,650 7,481
________ ________
12,155 17,495
Long-Term Debt 990 1,034
________ ________
13,145 18,529
________ ________
Total Liabilities 463,476 456,487
________ ________
STOCKHOLDERS' EQUITY:
Convertible Preferred Stock, $25 per
share redemption value, authorized
452,948 and 602,133 shares at
March 31, 1995 and December 31, 1994,
outstanding 369,587 and 518,772
shares at March 31, 1995 and
December 31, 1994 9,240 12,969
Common Stock, $.01 par value, authorized
50,000,000 shares, outstanding
11,218,395 and 10,909,860 shares at
March 31, 1995 and December 31, 1994 112 109
Capital In Excess of Par Value 347,266 340,673
Unearned Compensation on Restricted Stock (2,528) -
Retained Earnings (Deficit) (54,147) (62,287)
________ ________
Total Stockholders' Equity 299,943 291,464
________ ________
$763,419 $747,951
======== ========
The accompanying notes are an integral part of these balance sheets.
<PAGE> 5
U.S. HOME CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
Three Months Ended
March 31,
_______________________
1995 1994
_________ ________
HOUSING:
Operating Revenues $260,127 $222,000
________ ________
Operating Costs and Expenses -
Cost of products sold 218,346 185,804
Selling, general and administrative 29,142 25,047
________ ________
247,488 210,851
________ ________
Housing Operating Income 12,639 11,149
________ ________
FINANCIAL SERVICES:
Operating Revenues 3,075 3,300
________ ________
Operating Costs and Expenses -
General and administrative 2,624 2,666
Interest 66 207
________ ________
2,690 2,873
________ ________
Financial Services Operating
Income 385 427
________ ________
INCOME BEFORE INCOME TAXES 13,024 11,576
PROVISION FOR INCOME TAXES 4,884 4,515
________ ________
NET INCOME $ 8,140 $ 7,061
======== ========
INCOME PER COMMON AND COMMON
EQUIVALENT SHARE:
Primary $ .70 $ .60
======== ========
Fully diluted $ .62 $ .52
======== ========
The accompanying notes are an integral part of these statement.
<PAGE> 6
U.S. HOME CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
Three Months Ended
March 31,
______________________
1995 1994
_________ ________
Net Cash Provided (Used) by Operating Activities $ (9,689) $ 11,768
_________ ________
Net Cash Flows From Investing Activities:
Purchase of property, plant and equipment,
net of disposal (719) (456)
Proceeds from investments in mortgages,
net of purchases 68 747
Decrease (increase) in restricted cash (124) 493
Other (227) (81)
_________ ________
Net cash provided (used) by investing activities (1,002) 703
_________ ________
Net Cash Flows From Financing Activities:
Proceeds from short-term debt, net of
repayment 13,926 (12,723)
Repayment long-term debt (3,728) (2,792)
--------- --------
Net cash provided (used) by financing activities 10,198 (15,515)
_________ ________
Net Decrease in Cash (493) (3,044)
Cash At Beginning of Period 2,050 15,829
_________ ________
Cash At End of Period $ 1,557 $ 12,785
========= ========
Supplemental Disclosure:
Interest paid, before amount capitalized -
Housing $ 1,991 $ 1,540
Financial Services 87 220
_________ ________
$ 2,078 $ 1,760
========= ========
The accompanying notes are an integral part of these statements.
<PAGE> 7
U.S. HOME CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
March 31, 1995
(Unaudited)
(1) PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION
The accompanying consolidated condensed balance sheet as of
December 31, 1994, which has been derived from audited financial
statements, and the accompanying unaudited consolidated condensed
financial statements have been prepared pursuant to the rules and
regulations of the Securities and Exchange Commission. Certain
information and note disclosures normally included in annual financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to those rules and
regulations. Although the Company believes that the disclosures made
are adequate to ensure that the information presented is not misleading,
it is suggested that these condensed financial statements should be read
in conjunction with the financial statements and notes thereto included
in the Company's latest Annual Report on Form 10-K.
In the opinion of the Company, the accompanying consolidated
condensed financial statements contain all adjustments necessary to
present fairly the Company's financial position as of March 31, 1995
and December 31, 1994 and its results of operations and cash flows for
the three month periods ended March 31, 1995 and 1994.
Because of the seasonal nature of the Company's business, the
results of operations for the three month periods ended March 31, 1995
and 1994 are not necessarily indicative of the results for the full year.
(2) INVENTORIES
The components of single-family housing inventories are as follows:
March 31, December 31,
1995 1994
_________ ____________
(Dollars in Thousands)
Housing completed and under construction $212,017 $224,870
Models 51,374 47,914
Finished lots 119,418 118,508
Land under development 68,348 60,809
Raw land held for development or sale 132,376 124,678
________ ________
$583,533 $576,779
======== ========
<PAGE> 8
(3) SHORT-TERM DEBT
Short-term debt consists of the following:
March 31, December 31,
1995 1994
___________ ____________
(Dollars in thousands)
Housing -
Revolving working capital facility $27,252 $ 7,553
Other short-term debt 826 1,089
_______ _______
28,078 8,642
Financial Services 4,505 10,014
_______ _______
Total short-term debt $32,583 $18,656
======= =======
The revolving working capital agreement, as amended (the "Working
Capital Facility"), consists of a $95,000,000 secured financing agreement
with General Electric Capital Corporation ("GECC") of which $25,000,000
may be used for letter of credit obligations. The Working Capital
Facility bears interest at a premium over the GECC composite commercial
paper rate and matures on June 20, 1997. In accordance with the Working
Capital Facility, the Company has provided GECC liens on its cash,
personal property and certain finished lots and single-family housing
units, including models, with a cost of approximately $164,954,000
at March 31, 1995. This collateral has provided the Company with an
available borrowing base capacity of $95,000,000 at March 31, 1995, of
which $33,270,000 was outstanding, including $6,018,000 of letter of
credit obligations. The Working Capital Facility contains numerous real
estate and financial covenants, including an inventory-to-backlog ratio
and restrictions on the incurring of additional debt, creation of liens
and the purchase of land.
Financial services short-term debt consists of an agreement with a
financial institution which, as amended, provides the Company's mortgage
banking subsidiary, U.S. Home Mortgage Corporation ("Mortgage"), with a
$25,000,000 secured revolving line of credit (the "Mortgage Credit
Facility"). The Mortgage Credit Facility, which is not guaranteed by
the Company, matures on August 31, 1995 and bears interest at the greater
of a premium over the London Interbank Offered Rate or a premium over a
composite rate for dealer-placed 30-day commercial paper. Certain
residential mortgage loans have been pledged as collateral to secure
Mortgage's obligations under the Mortgage Credit Facility. The Company
expects the Mortgage Credit Facility to be extended or replaced by a
credit facility similar to the terms and conditions of its present
credit facility.
<PAGE> 9
(4) LONG-TERM DEBT
Long-term debt consists of the following:
March 31, December 31,
1995 1994
___________ _____________
(Dollars in Thousands)
Housing -
Notes and mortgage notes payable $ 19,554 $ 23,238
9.75% Senior notes due 2003 200,000 200,000
4.875% Convertible subordinated
debentures due 2005 80,000 80,000
________ ________
299,554 303,238
Less - Current maturities (9,863) (10,572)
________ ________
289,691 292,666
Financial Services 990 1,034
________ ________
Total long-term debt $290,681 $293,700
======== ========
(5) HOUSING INTEREST
A summary of housing interest for the three month periods ended March 31,
1995 and 1994 follows (dollars in thousands):
1995 1994
________ ________
Capitalized at beginning of period $ 56,082 $ 55,580
________ ________
Paid and accrued 7,839 7,599
Expensed - -
________ ________
Capitalized 7,839 7,599
Included in cost of sales (7,022) (6,859)
Included in other (150) (1,436)
________ ________
Capitalized at end of period $ 56,749 $ 54,884
======== ========
(6) RESTRICTED STOCK PLAN
Effective January 1, 1995, the Company issued 144,547 restricted shares
of the Company's common stock under its Corporate Officers and Presidents
of Operations Restricted Stock Plan (the "Restricted Stock Plan"). The
value of the issued shares ($2,600,000 based on the average closing
price of the Company's common stock for the ten consecutive trading day
period ended February 23, 1995) has been recorded as "unearned
compensation on restricted stock" in the accompanying consolidated
condensed balance sheets. The shares vest, subject to acceleration
based upon improvements in the Company's return on assets (as defined
in the Restricted Stock Plan) over the base year, over a five-year
period ending December 31, 2004. The Company is amortizing the
$2,600,000 to expense over the term of the Restricted Stock Plan.
<PAGE> 10
(7) INCOME PER SHARE
The following weighted average number of common and common equivalent
shares were used to compute income per share for the three month
periods ended March 31, 1995 and 1994:
1995 1994
___________ __________
Primary 11,580,628 11,843,707
Fully diluted 13,834,149 14,097,228
The weighted average number of common and common equivalent shares
outstanding for 1994 primary income per share includes the dilutive
effect of the convertible redeemable preferred stock and Class B
warrants and the assumed exercise of stock options. No effect was
given to the shares that would be issuable on exercise of the warrants
and stock options in 1995 since they would be antidilutive or were
immaterial. Fully diluted income per share includes the assumed
conversion of the convertible subordinated debentures.
<PAGE> 11
REVIEW BY INDEPENDENT PUBLIC ACCOUNTANTS
Arthur Andersen LLP, independent public accountants, has performed a
review of the consolidated condensed balance sheet as of March 31, 1995
and the related consolidated condensed statements of operations and
cash flows for the three month periods ended March 31, 1995 and 1994
included in this report. Such review was made in accordance with
standards established by the American Institute of Certified Public
Accountants.
<PAGE> 12
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO U.S. HOME CORPORATION:
We have reviewed the accompanying consolidated condensed balance sheet of
U.S. Home Corporation (a Delaware corporation) and subsidiaries as of
March 31, 1995, and the related consolidated condensed statements of
operations and cash flows for the three-month periods ended March 31, 1995
and 1994. These financial statements are the responsibility of the
Company's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical
procedures to financial data and making inquiries of persons responsible
for financial and accounting matters. It is substantially less in scope
than an audit conducted in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion
regarding the financial statements taken as a whole. Accordingly, we do
not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the financial statements referred to above for them to
be in conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of U.S. Home Corporation and
subsidiaries as of December 31, 1994, and the related consolidated
statement of operations, stockholders' equity and cash flows for the year
then ended (not presented herein), and in our report dated February 8, 1995
we issued an unqualified opinion on those statements. In our opinion, the
information set forth in the accompanying consolidated condensed balance
sheet as of December 31, 1994, is fairly stated, in all material respects,
in relation to the consolidated balance sheet from which it has been
derived.
/s/ Arthur Andersen LLP
ARTHUR ANDERSEN LLP
Houston, Texas
April 24, 1995
<PAGE> 13
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations
Housing
The following table sets forth certain financial information for the
periods indicated (dollars in thousands, except average sales price):
Three Months Ended
March 31,
____________________
1995 1994
________ ________
Revenues -
Single-family homes
$256,373 $218,540
Land and other 3,754 3,460
________ ________
Total $260,127 $222,000
======== ========
Single-family homes -
Gross margin amount $ 41,246 $ 35,442
Gross margin percentage 16.1% 16.2%
Units delivered 1,649 1,480
Average sales price $155,500 $147,700
New orders taken 2,277 2,340
Backlog at end of period 3,179 3,564
Selling, general and
administrative expenses as
a percentage of housing
revenues 11.2% 11.3%
Interest expense -
Paid and accrued $ 7,839 $ 7,599
Capitalized $ 7,839 $ 7,599
Percent capitalized 100.0% 100.0%
Capitalized interest included
in cost of products sold $ 7,022 $ 6,859
Revenues -
Revenues from sales of single-family homes for the three month period
ended March 31, 1995 increased 17% compared to the three month period
ended March 31, 1994. The increase resulted from a 11% increase in the
number of housing units delivered and 5% increase in average sales price.
The increase in the average sales price in 1995 is primarily due to price
increases.
New orders taken for the three month period ended March 31, 1995 decreased
3% compared to the same period in 1994. See Part II, "Item 5 - Other
Information" on page 17 for a table of unit activity by market for the
three month periods ended March 31, 1995 and 1994.
<PAGE> 14
No assurances can be given that revenues for the balance of 1995 will
continue to exceed 1994 results. The increase in mortgage interest rates
in the last three quarters of 1994 created a more competitive housing
environment, impacted current sales activities and has caused housing
industry estimates for national new home sales for 1995 to be less than
1994 actual results. During the three month period ended March 31, 1995,
the Company was able to minimize the impact of the increase in mortgage
interest rates upon new orders by adjusting sales price incentives and
opening communities in new markets and additional communities in existing
markets. As long as higher interest rates prevail, there will be
continued pressure on new orders, operating margins and sales prices.
Selling, General and Administrative Expenses -
As a percentage of housing revenues, selling, general and administrative
expenses were both 11% in 1995 and 1994. Actual selling, general and
administrative expenses for the three month period ended March 31, 1995
increased by $4.1 million compared to 1994. This increase was
attributable to increases in volume-related expenses resulting from
increased deliveries in 1995 when compared to 1994 and increases in other
selling, general and administrative expenses resulting from increased
activities.
Financial Services
Revenues -
Revenues for the financial services segment for the periods indicated were
as follows (dollars in thousands):
Three Months
Ended
March 31,
_________________
1995 1994
______ ______
U.S. Home Mortgage Corporation and Subsidiary $2,272 $2,589
Other financial services operations 803 711
______ ______
$3,075 $3,300
====== ======
The decrease in U.S. Home Mortgage Corporation and subsidiary's("Mortgage")
revenues for the three-month period ended March 31, 1995 when compared to
the three-month period ended March 31, 1994 was primarily due to a
decrease in mortgage loan originations and income from the sale of
mortgage loans and servicing rights.
<PAGE> 15
Financial Condition and Liquidity -
Housing
The Company's most significant needs for capital resources are land and
finished lots purchases, land development and housing construction. The
Company's ability to generate cash adequate to meet these needs is
principally achieved from the sale of houses, and the margins thereon,
the utilization of Company-owned lots and periodic borrowings under its
financing facilities. The Company expects, on a long-term basis, that
operations will generate cash to meet substantially all of its housing
cash flow needs and that a financing facility, such as the $95 million
secured revolving working capital facility (the "Working Capital
Facility") with General Electric Capital Corporation ("GECC"), would be
utilized to meet peak operating needs. The Company does not anticipate
that the borrowing base requirements of the Working Capital Facility will
restrict the Company's ability to borrow under such Facility. See Note 3
of Notes to Consolidated Condensed Financial Statements. The Company
employs various operational guidelines to reduce initial cash requirements
with respect to investments in land, thereby increasing its financial
flexibility and reducing its risk by limiting the amount invested in land
owned directly by the Company. The Company intends to continue, where
possible, to use Company-owned lots in inventory to generate additional
cash flow and to continue to emphasize land acquisitions using rolling
lot options, which enable the Company to initially pay a small fraction
of total lot cost and then purchase the lots for a fixed price on a
scheduled or "as needed" basis. The Company believes that these steps
result in reduced carrying costs and limited exposure to market changes
and direct land investments. The increase in the land inventories in 1995
from 1994 was primarily the result of increased activities, including the
continued expansion of the retirement and active-adult/second home
communities.
The net cash provided or used by the operating, investing and financing
activities of the housing operations for the three month periods ended
March 31, 1995 and 1994 is summarized below (dollars in thousands):
1995 1994
_________ _________
Net cash provided (used) by:
Operating activities $(15,231) $ (4,323)
Investing activities (719) (432)
Financing activities 15,751 (1,793)
________ ________
Net decrease in cash $ (199) $ (6,548)
======== ========
Housing operating activities are, at any time, affected by a number of
factors, including the number of housing units under construction and
housing units delivered. Cash flows from housing operating activities
for 1995 used more cash compared to 1994 primarily due to the timing of
payments related to increased housing activities.
Cash flow from housing financing activities for 1995 was provided by net
borrowings under the Working Capital Facility, offset by repayment of
notes and mortgages payable. Cash flow from housing financing activities
for 1994 was used for the repayment of notes and mortgages payable.
<PAGE> 16
The Company anticipates that cash flow from operations and amounts
available under the Working Capital Facility will be sufficient to meet
its working capital obligations.
Financial Services
Mortgage's activities represent substantially all of the financial
services segment's activities. As loan originations by Mortgage are
primarily from housing units delivered by the Company's homebuilding
operations, Mortgage's financial condition and liquidity are to a
significant extent dependent upon the financial condition of the Company.
The Company finances its financial services operations primarily from
internally generated funds, such as the origination and sale of
residential mortgage loans and related servicing rights, and short-term
debt. As more fully discussed in Note 3 of Notes to Consolidated
Condensed Financial Statements, the short-term debt consists of a $25
million secured revolving line of credit entered into by Mortgage in
April 1992, as amended (the "Mortgage Credit Facility"), which matures
August 31, 1995. While the Mortgage Credit Facility contains numerous
covenants, including a debt to tangible net worth ratio and a minimum
tangible net worth requirement, these covenants are not anticipated to
significantly limit Mortgage's operations.
The Company has no obligation to provide funding to its financial services
operations, nor does it guarantee any of its financial services
subsidiaries' debt. The Company believes that the internally generated
funds and the Mortgage Credit Facility will be sufficient to provide for
Mortgage's working capital needs.
Other -
Future Accounting Requirements
In March 1995, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 121, Accounting for the Impairment
of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of (the
"Statement"). For the Company, the Statement will be effective for the
year beginning January 1, 1996. The Statement, among other things,
amends current accounting practices for the valuation of real estate held
for development and sale. The Company does not expect the adoption of
the Statement to have a material effect on its financial position or
results of operations.
<PAGE> 17
Part II. OTHER INFORMATION
Item 5. Other Information
The following table provides information (expressed in number of
housing units) with respect to new orders taken, deliveries to
purchasers of single-family homes and backlog by market for the
three month periods ended March 31, 1995 and 1994:
Market New Orders Deliveries Backlog
_______________ ______________ ___________ ______________
1995 1994 1995 1994 1995 1994
_____ _____ ____ _____ _____ _____
Florida 785 936 670 430 1,261 1,473
Mountain -
Arizona 286 308 187 255 362 441
Colorado 425 294 255 203 560 567
Nevada 77 91 64 67 103 105
Northeast/Midwest -
Minnesota 70 132 60 91 97 185
Maryland/Virginia 111 98 72 97 121 132
New Jersey 70 42 79 42 160 89
Indiana/Ohio 15 - 7 - 18 -
California 179 225 101 152 164 210
Texas 259 214 154 143 333 362
_____ _____ _____ _____ _____ _____
2,277 2,340 1,649 1,480 3,179 3,564
===== ===== ===== ===== ===== =====
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 11 - Computation of Income Per Common Share
Exhibit 15 - Letter with respect to unaudited financial
information
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K
No Current Report on Form 8-K was filed by the Company during
January, February or March 1995.
<PAGE> 18
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by
the undersigned thereunto duly authorized.
U.S. HOME CORPORATION
Date: May 2, 1995 /s/ Isaac Heimbinder
_________________________
Isaac Heimbinder
President, Co-Chief Executive
Officer and Chief Operating Officer
Date: May 2, 1995 /s/ Chester P. Sadowski
_________________________
Chester P. Sadowski
Vice President, Controller
and Chief Accounting Officer
<PAGE> 19
INDEX OF EXHIBITS
Sequential
Exhibit Numbered
Number Page
________ ____________
11 Computation of Income Per Common Share 20
15 Letter with respect to unaudited interim
financial information 21
27 Financial Data Schedule 22
<PAGE> 20
EXHIBIT 11
(Unaudited)
U.S. HOME CORPORATION AND SUBSIDIARIES
INCOME PER COMMON SHARE FOR THE CONSOLIDATED CONDENSED STATEMENTS OF
OPERATIONS
INCOME HAS BEEN COMPUTED ON THE WEIGHTED AVERAGE NUMBER OF COMMON SHARES
AND COMMON SHARE EQUIVALENTS OUTSTANDING AS FOLLOWS:
(Dollars in Thousands, Except Per Share Data)
Three Months Ended March 31,
____________________________
1995 1994
___________ ___________
Income per common and common
equivalent shares -
Net income $ 8,140 $ 7,061
Weighted average common shares
outstanding 11,580,628 11,344,295
Effect of assumed exercise of dilutive
stock options and warrants - 499,412
___________ __________
Total common shares and common equivalent
shares 11,580,628 11,843,707
=========== ===========
Income per common share and common
equivalent shares $ .70 $ .60
=========== ===========
Income per common share, assuming full
dilution -
Net income $ 8,140 $ 7,061
Add interest applicable to 4.875%
convertible subordinated debentures,
net of income tax effect 481 260
___________ ___________
Income per common share, assuming full
dilution $ 8,621 $ 7,321
=========== ===========
Total common and common equivalent shares 11,580,628 11,843,707
Assumed conversion of 4.875% convertible
subordinated debentures at $35.50 per
share 2,253,521 2,253,521
__________ ___________
Common shares, assuming full dilution 13,834,149 14,097,228
=========== ===========
Income per common share, assuming full
dilution $ .62 $ .52
=========== ===========
Note a - See Note 7 of Notes to Consolidated Condensed
Financial Statements.
<PAGE> 21
Exhibit 15
To U.S. HOME CORPORATION:
We are aware that U.S. Home Corporation has incorporated by reference in
its Registration Statements No. 33-64712, 33-52993 and 33-58863 its
Form 10-Q for the quarter ended March 31, 1995, which includes our report
dated April 24, 1995 covering the unaudited interim financial information
contained therein. Pursuant to Regulation C of the Securities Act of
1933, that report is not considered a part of the registration statement
prepared or certified by our firm within the meaning of Sections 7 and 11
of the Act.
/s/ Arthur Andersen LLP
ARTHUR ANDERSEN LLP
Houston, Texas
May 2, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This Schedule Contains Summary Financial Information Extracted From The
Consolidated Condensed Financial STatements As Of March 31, 1995 And For
The Three Months Then Ended And Is Qualified In Its Entirety By Reference
To Such Financial Statements.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 6346
<SECURITIES> 0
<RECEIVABLES> 57871
<ALLOWANCES> 0
<INVENTORY> 583533
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 763419
<CURRENT-LIABILITIES> 172795
<BONDS> 290681
<COMMON> 112
0
9240
<OTHER-SE> 290591
<TOTAL-LIABILITY-AND-EQUITY> 763419
<SALES> 0
<TOTAL-REVENUES> 263202
<CGS> 218346
<TOTAL-COSTS> 250112
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 66
<INCOME-PRETAX> 13024
<INCOME-TAX> 4884
<INCOME-CONTINUING> 8140
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8140
<EPS-PRIMARY> .70
<EPS-DILUTED> .62
</TABLE>
