UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the period ended February 28, 1995
Commission File Number: 1-6643
LENNAR CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 59-1281887
- ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
700 Northwest 107 Avenue, Miami, Florida 33172
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
(305) 559-4000
----------------------------------------------------
(Registrant's telephone number, including area code)
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 _____
Common shares outstanding as of the end of the current fiscal quarter:
Common 25,819,544
Class B Common 9,986,631
<PAGE>
Part I. Financial Information
Item 1. Financial Statements
LENNAR CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Earnings
(Unaudited)
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
---------------------------
February 28, February 28,
1995 1994
- -----------------------------------------------------------------------------------------
<S> <C> <C>
REVENUES:
Homebuilding $ 138,427 153,870
Investment 28,555 20,514
Financial services 12,131 14,728
Limited-purpose finance subsidiaries 2,070 2,714
----------- -----------
Total revenues 181,183 191,826
COSTS AND EXPENSES:
Homebuilding 127,117 138,152
Investment 13,253 10,123
Financial services 7,410 11,151
Limited-purpose finance subsidiaries 2,064 2,790
Corporate general and administrative 2,456 2,318
Interest 4,281 3,108
----------- -----------
Total costs and expenses 156,581 167,642
EARNINGS BEFORE INCOME TAXES AND CUMULATIVE EFFECT OF
CHANGES IN ACCOUNTING PRINCIPLES 24,602 24,184
INCOME TAXES 9,595 9,432
----------- -----------
EARNINGS BEFORE CUMULATIVE EFFECT OF CHANGES
IN ACCOUNTING PRINCIPLES 15,007 14,752
CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES FOR:
Income taxes -- 4,745
Purchased mortgage servicing rights -- (3,784)
----------- -----------
NET EARNINGS $ 15,007 15,713
=========== ===========
AVERAGE SHARES OUTSTANDING 36,037 36,087
=========== ===========
NET EARNINGS PER SHARE:
BEFORE CUMULATIVE EFFECT OF CHANGES IN
ACCOUNTING PRINCIPLES $ .42 .41
CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING
PRINCIPLES -- .03
----------- -----------
NET EARNINGS PER SHARE $ .42 .44
=========== ===========
CASH DIVIDENDS PER COMMON SHARE $ .025 .02
=========== ===========
CASH DIVIDENDS PER CLASS B COMMON SHARE $ .0225 .0167
=========== ===========
</TABLE>
See accompanying notes to consolidated condensed financial statements.
<PAGE>
LENNAR CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Unaudited)
(In thousands)
<TABLE>
<CAPTION>
February 28, November 30,
ASSETS 1995 1994
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
HOMEBUILDING, INVESTMENT AND FINANCIAL SERVICES:
Homebuilding and investment assets:
Cash and cash equivalents $ 7,491 16,801
Receivables, net 42,724 48,165
Inventories:
Construction in progress and model homes 186,376 175,547
Land held for development 302,660 300,488
------------ ------------
Total inventories 489,036 476,035
Land held for investment 79,245 80,747
Operating properties and equipment, net 197,053 193,621
Investments in and advances to partnerships 109,115 106,637
Other assets 29,184 29,598
Financial services assets 236,052 252,195
------------ ------------
Total assets - homebuilding, investment and financial services 1,189,900 1,203,799
LIMITED-PURPOSE FINANCE SUBSIDIARIES - COLLATERAL FOR BONDS AND NOTES PAYABLE 85,307 89,424
------------ ------------
$ 1,275,207 1,293,223
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
- -----------------------------------------------------------------------------------------------------------
HOMEBUILDING, INVESTMENT AND FINANCIAL SERVICES:
Homebuilding and investment liabilities:
Accounts payable and accrued liabilities $ 90,349 102,582
Customer deposits 13,948 15,271
Income taxes:
Currently payable 14,160 10,205
Deferred 50,162 50,796
Mortgage notes and other debts payable 381,550 381,901
Financial services liabilities 96,958 115,383
------------ ------------
Total liabilities - homebuilding, investment and financial services 647,127 676,138
------------ ------------
LIMITED-PURPOSE FINANCE SUBSIDIARIES - BONDS AND NOTES PAYABLE 79,329 82,997
------------ ------------
STOCKHOLDERS' EQUITY:
Common stock 2,582 2,578
Class B common stock 999 999
Additional paid-in capital 170,127 169,605
Retained earnings 375,043 360,906
------------ ------------
Total stockholders' equity 548,751 534,088
------------ ------------
$ 1,275,207 1,293,223
============ ============
</TABLE>
See accompanying notes to consolidated condensed financial statements
2
<PAGE>
LENNAR CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows
(Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Three Months Ended
--------------------------
February 28, February 28,
1995 1994
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 15,007 15,713
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization 2,782 2,098
Equity in earnings of partnerships (9,258) (4,912)
Decrease in deferred income taxes (634) (1,475)
Cumulative effect of changes in accounting principles -- (961)
Changes in assets and liabilities, net of effects from accounting changes:
Decrease (increase) in receivables 6,197 (12,785)
Increase in inventories (12,969) (20,414)
Decrease in financial services' loans held for sale or disposition 18,801 57,232
Decrease in accounts payable and accrued liabilities (13,677) (25,429)
Other, net 2,649 1,281
------------ -----------
Net cash provided by operating activities 8,898 10,348
------------ -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to operating properties and equipment (5,137) (4,157)
Decrease (increase) in investments in and advances to partnerships 6,764 (4,014)
Increase in loans held for investment (1,925) (10,025)
Other, net 1,628 (5,482)
------------ -----------
Net cash provided by (used in) investing activities 1,330 (23,678)
------------ -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings under revolving credit agreement 55,100 32,200
Net repayments under financial services' short-term debt (16,928) (42,896)
Mortgage notes and other debts payable:
Proceeds from borrowings 1,539 35,961
Principal payments (56,990) (8,299)
Limited-purpose finance subsidiaries:
Principal reduction of mortgage loans and other receivables 4,071 15,193
Principal reduction of bonds and notes payable (3,716) (14,401)
Common stock:
Issuance 526 677
Dividends (870) (682)
------------ -----------
Net cash provided by (used in) financing activities (17,268) 17,753
------------ -----------
Net increase (decrease) in cash and cash equivalents (7,040) 4,423
Cash and cash equivalents at beginning of quarter 17,941 14,225
------------ -----------
Cash and cash equivalents at end of quarter 10,901 18,648
============ ===========
Summary of cash and cash equivalent balances:
Homebuilding and investment $ 7,491 11,857
Financial services 3,410 6,791
------------ -----------
$ 10,901 18,648
============ ===========
Supplemental disclosures of cash flow information:
Cash paid for interest, net of amounts capitalized $ 4,297 4,160
Cash paid for income taxes $ 6,018 7,140
</TABLE>
See accompanying notes to consolidated condensed financial statements.
3
<PAGE>
LENNAR CORPORATION AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
(1) Basis of consolidation
The accompanying consolidated condensed financial statements include the
accounts of Lennar Corporation and all wholly-owned subsidiaries (the
"Company"). All significant intercompany transactions and balances have been
eliminated. The Company's investments in partnerships are accounted for by the
equity method. The financial statements have been prepared by management
without audit by independent public accountants and should be read in
conjunction with the November 30, 1994 audited financial statements in the
Company's Annual Report on Form 10-K for the year then ended. However, in the
opinion of management, all adjustments (consisting of normal recurring
adjustments) necessary for fair presentation of the accompanying consolidated
condensed financial statements have been made.
(2) Business segments
The Company has three business segments: Homebuilding, Investment and
Financial Services. The limited-purpose finance subsidiaries are not considered
a business segment.
Homebuilding operations include the construction and sale of single-family
and multi-family homes. These activities also include the purchase, development
and sale of residential land.
The Investment Division is involved in the development, management and
leasing, as well as the acquisition and sale, of commercial and residential
properties and land. This division also manages and participates in
partnerships with financial institutions. During 1994, this division began
acquiring, at a discount, the unrated portions of debt securities which are
collateralized by real estate loans. The division has only invested in
securities in which it is the special servicer on behalf of all the certificate
holders of the security. The division earns interest on these investments as
well as fees for the special servicing activities.
Financial services activities are conducted primarily through Lennar
Financial Services ("LFS") and five subsidiaries: Universal American Mortgage
Company, AmeriStar Financial Services, Inc., Universal Title Insurors, Inc.,
Loan Funding Corporation and TitleAmerica, Inc. These companies arrange
mortgage financing, title insurance, and closing services for Lennar homebuyers
and others, acquire, package and resell home mortgage loans and perform mortgage
loan servicing activities. This division also invests in rated portions of
commercial real estate mortgage-backed securities for which Lennar's Investment
Division is the special servicer, and an investor in the unrated portion of
those securities.
The limited-purpose finance subsidiaries of LFS have placed mortgages and
other receivables as collateral for various long-term financings. These
limited-purpose finance subsidiaries are not considered a part of the financial
services operations and are reported separately.
(3) Net earnings per share
Net earnings per share is calculated by dividing net earnings by the
weighted average number of the total of common shares, Class B common shares and
common equivalent shares outstanding during the period.
4
<PAGE>
(4) Restricted cash
Cash includes restricted deposits of $3.4 million and $3.7 million as of
February 28, 1995 and November 30, 1994, respectively. These balances are
comprised primarily of escrow deposits held related to condominium purchases and
security deposits from tenants of commercial and apartment properties.
(5) Financial services
The assets and liabilities related to the Company's financial services
operations (as described in Note 2) are summarized as follows:
<TABLE>
<CAPTION>
February 28, November 30,
(In thousands) 1995 1994
- -------------------------------------------------------------------------------
<S> <C> <C>
Assets:
Loans held for sale or disposition, net $ 105,617 124,324
Loans and mortgage-backed securities
held for investment, net 109,970 107,989
Cash and receivables, net 13,100 11,579
Servicing acquisition costs 3,471 3,949
Other 3,894 4,354
------------ -----------
$ 236,052 252,195
============ ===========
Liabilities:
Notes payable $ 84,486 101,414
Other 12,472 13,969
------------ -----------
$ 96,958 115,383
============ ===========
</TABLE>
(6) Accounting changes
Effective December 1, 1993, the Company adopted the provisions of Statement
of Financial Accounting Standards No. 109, "Accounting for Income Taxes". This
change in accounting principle resulted in an increase to net earnings of $4.7
million in the first quarter of 1994. The change in accounting for income taxes
did not have a significant impact on the Company's results of operations.
The first quarter of 1994 also included a charge of $3.8 million (net of
income taxes of $2.4 million) for the cumulative effect on prior years of a
change in accounting for purchased mortgage servicing rights. During the first
quarter of 1994, the Company changed the way in which it evaluates these assets
from an undiscounted and disaggregated cash flow basis to a discounted and
disaggregated cash flow basis.
(7) Reclassifications
Certain prior year amounts in the consolidated condensed financial
statements have been reclassified to conform with the current period
presentation.
5
<PAGE>
Item 2. Management's Discussion and Analysis of Results of Operations and
Financial Condition
(1) Material changes in results of operations.
OVERVIEW
Net earnings before the cumulative effect of changes in accounting
principles for the periods ended February 28, 1995 and 1994 were $15.0 million
and $14.8 million, respectively. The increase in 1995 was due to higher
operating earnings from the Investment and Financial Services Divisions which
were partially offset by lower operating earnings from the Homebuilding
Division and higher interest expense. In the first quarter of 1994, the
Company made two one-time adjustments for changes in accounting principles
which increased net earnings to $15.7 million. There were no accounting
changes in the 1995 period.
HOMEBUILDING
The following tables set forth selected financial and operational information
related to the Homebuilding Division for the periods indicated:
<TABLE>
<CAPTION>
(Dollars in thousands, except Three Months Ended February 28,
average sales prices) 1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C>
REVENUES:
Sales of homes $132,973 147,442
Other 5,454 6,428
- --------------------------------------------------------------------------------
Total revenues 138,427 153,870
COSTS AND EXPENSES:
Cost of homes sold 106,870 117,762
Cost of other revenues 4,462 5,051
Selling, general and administrative 15,785 15,339
- --------------------------------------------------------------------------------
Total costs and expenses 127,117 138,152
- --------------------------------------------------------------------------------
OPERATING EARNINGS $ 11,310 15,718
================================================================================
Gross profit - home sales $ 26,103 29,680
Gross profit percentage 19.6% 20.1%
S,G&A as a percentage of homebuilding revenues 11.4% 10.0%
Average sales price $139,100 125,400
================================================================================
</TABLE>
6
<PAGE>
SUMMARY OF HOME AND BACKLOG DATA
<TABLE>
<CAPTION>
Three Months Ended February 28,
DELIVERIES 1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C>
Florida 699 915
Arizona 110 154
Texas 147 107
- --------------------------------------------------------------------------------
956 1,176
================================================================================
NEW ORDERS
- --------------------------------------------------------------------------------
Florida 709 885
Arizona 92 142
Texas 156 166
- --------------------------------------------------------------------------------
957 1,193
================================================================================
BACKLOG - HOMES
- --------------------------------------------------------------------------------
Florida 1,332 1,648
Arizona 220 328
Texas 152 146
- --------------------------------------------------------------------------------
1,704 2,122
================================================================================
BACKLOG - DOLLAR VALUE (in thousands) $244,615 269,508
================================================================================
</TABLE>
Homebuilding revenues in the three-month period ended February 28, 1995 were
$138.4 million, compared to $153.9 million during the same period of 1994.
Homebuilding revenues were lower in 1995 due primarily to fewer home
deliveries, partially offset by an increase in the average sales price.
The average price of a home delivered during the three-month period ended
February 28, 1995 was $139,100, compared to $125,400 for the corresponding
period of the prior year. The higher average sales price was due to a
proportionately greater number of sales of higher-priced homes, as well
as price increases for existing products.
The gross profit percentages from the sales of homes were 19.6% in the first
quarter of 1995, compared to 20.1% in the corresponding period of last year.
This decrease was attributable to field overhead expenses being absorbed by a
fewer number of home deliveries. Field overhead expenses are charged to cost of
homes sold in the period they are incurred.
Selling, general and administrative expenses in the Homebuilding Division were
$15.8 million and $15.3 million, respectively, in the three months ended
February 28, 1995 and 1994. As a percentage of homebuilding revenues, selling,
general and administrative expenses increased from 10.0% in the first quarter
of 1994 to 11.4% in the first quarter of 1995, due primarily to the lower
revenue base during the 1995 period.
At February 28, 1995, the Company had approximately $245 million (1,704 homes)
of sales contracts in backlog, as compared to $270 million (2,122 homes) at the
end of the same period a year ago. The decrease in the backlog reflects the
slowing of the national housing market during the past several months.
7
<PAGE>
INVESTMENT
The following table presents the selected financial data related to the
Investment Division for the periods indicated:
<TABLE>
<CAPTION>
Three Months Ended February 28,
(In thousands) 1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C>
REVENUES
Rental income $12,938 10,944
Equity in earnings of partnerships 9,258 4,912
Management fees 2,623 2,189
Sales of other real estate 1,400 633
Other 2,336 1,836
- --------------------------------------------------------------------------------
Total revenues 28,555 20,514
COST OF SALES AND EXPENSES 13,253 10,123
- --------------------------------------------------------------------------------
OPERATING EARNINGS $15,302 10,391
================================================================================
</TABLE>
Investment Division revenues increased to $28.6 million in the first quarter of
1995, compared to $20.5 million in the same period of 1994. Operating earnings
from the Investment Division increased to $15.3 million in the first three
months of fiscal 1995 from $10.4 million in the corresponding period of 1994.
The increase in revenues and operating earnings during the first quarter was
mainly attributable to increases in rental income and equity in earnings of
partnerships. A significant portion of the partnerships' earnings are derived
from loan payoffs and asset sales which can vary substantially from period to
period. Rental income on operating properties increased primarily as a result
of the acquisition of additional operating properties throughout fiscal 1994.
FINANCIAL SERVICES
The following table presents the selected financial data related to the
Financial Services Division:
<TABLE>
<CAPTION>
Three Months Ended February 28,
(Dollars in thousands) 1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C>
REVENUES $ 12,131 14,728
COSTS AND EXPENSES 7,410 11,151
INTERCOMPANY INTEREST EXPENSE 1,418 484
- --------------------------------------------------------------------------------
OPERATING EARNINGS $ 3,303 3,093
================================================================================
Dollar volume of mortgages originated $ 127,100 335,703
- --------------------------------------------------------------------------------
Number of mortgages originated 1,200 3,200
- --------------------------------------------------------------------------------
Principal balance of servicing portfolio $3,415,382 3,420,488
- --------------------------------------------------------------------------------
Number of loans serviced 45,300 46,000
================================================================================
</TABLE>
Operating earnings of the Financial Services Division were $3.3 million for the
three months ended February 28, 1995, compared to $3.1 million for the same
period one year ago. The increase in operating earnings was primarily the
result of earnings from
8
<PAGE>
the Division's investment in the rated portions of commercial real estate
mortgage-backed securities. The Financial Services Division began acquiring
these investments during the third quarter of 1994. Therefore, there was no
comparable income in the first quarter of last year. The Division has reduced
its general and administrative expenses in its production and support areas
in response to the industry wide decline in mortgage loan origination volume.
INTEREST EXPENSE
Interest expense during the three-month period ended February 28, 1995 was $4.3
million, compared to $3.1 million in the corresponding period of the prior year.
The increase in interest expense was primarily the result of higher debt levels
and interest rates. Previously capitalized interest charged to interest expense
during the first quarters of 1995 and 1994 were $3.6 and $3.1 million,
respectively.
ACCOUNTING CHANGES
Effective December 1, 1993, the Company adopted the provisions of Statement of
Financial Accounting Standards ("SFAS") No. 109, "Accounting for Income Taxes".
This change in accounting principle resulted in an increase to net earnings of
$4.7 million in the first quarter of 1994. The change in accounting for income
taxes did not have a significant impact on the Company's results of operations.
The adoption of SFAS No. 109 is more fully explained in Note 6 to the
consolidated condensed financial statements.
The first quarter of 1994 also included a charge of $3.8 million (net of income
taxes of $2.4 million) for the cumulative effect on prior years of a change in
accounting for purchased mortgage servicing rights. This change, which is
discussed in more detail in Note 6 to the consolidated condensed financial
statements, changed the way in which the Company evaluates these assets for
impairment from an undiscounted cash flow basis to a discounted cash flow basis.
(2) Material changes in financial condition.
During the three months ended February 28, 1995, $8.9 million was
provided by the Company's operations, compared to $10.3 million during the
corresponding period of the prior year. Sources of cash flow from operations in
1995 consisted primarily of net earnings, an $18.8 million decrease in loans
held for sale or disposition by the Company's Financial Services Division and
a $6.2 million decrease in receivables. These sources were partially offset by
the use of $13.7 million to reduce accounts payable and accrued liabilities
and $13.0 million to increase inventories.
In the fiscal 1994 period, sources of cash flow from operations
consisted primarily of net earnings and a $57.2 million decrease in loans
held for sale or disposition by the Company's Financial Services Division.
These sources were partially offset by the use of $12.8 million to increase
receivables, $25.4 million to reduce accounts payable and accrued liabilities
and $20.4 million to increase inventories.
Cash provided by investing activities was $1.3 million in the first
quarter of 1995, compared to $23.7 million of cash used in the first quarter
of 1994. The increase in cash flow from investing activities was primarily
due to the fact that in 1995 $6.8 million of cash was provided from the
Company's investment in partnerships, compared to a net use of $4.0 million
in 1994. Additionally, the Company invested $1.9 million of cash in loans
during the first quarter of 1995, compared to $10.0 million invested in the
first quarter 1994.
During the first quarter of 1995, the Company amended its revolving
credit agreement to provide for a five year commitment of $300 million.
Additionally, in March of 1995, the agreement was amended to increase the
amount of the commitment to $310 million.
9
<PAGE>
Part II. Other Information
Item 1. Legal Proceedings
During 1993 and 1994, the Company settled two lawsuits and a number
of claims in which owners of approximately 675 homes built by the Company sought
damages as a result of Hurricane Andrew. Other homeowners or homeowners'
insurers are not precluded from making similar claims against the Company. Five
insurance companies have contacted the Company seeking reimbursement for sums
paid by them with regard to homes built by the Company and damaged by the storm.
The Company has settled all outstanding claims with four of these insurance
companies which represented the majority of the claims made. In addition to the
claims, there are three pending lawsuits in which homeowners or homeowners'
insurers seek damages. Other claims of this type may be asserted. The
Company's insurers have asserted that their policies cover some, but not all,
aspects of these claims. However, to date, the Company's insurers have made all
payments required under settlements. Even if the Company were required to make
any payments with regard to Hurricane Andrew related claims, the Company
believes that the amount it would pay would not be material to the results of
operations or financial position of the Company.
Items 2-3. Not applicable
Item 4. Submission of Matters to a Vote of Security Holders
The following matters were resolved by vote at the April 4, 1995
annual meeting of stockholders of Lennar Corporation:
The following members of the Board of Directors were re-elected
to hold office until 1998:
Charles I. Babcock, Jr.
Irving Bolotin
Leonard Miller
Other directors whose term of office continued after the meeting:
Richard W. McEwen
Stuart A. Miller
Steven J. Saiontz
Robert B. Cole
James W. McLamore
Arnold P. Rosen
Item 5. Not applicable
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
(27) Financial Data Schedule.
(b) Reports on Form 8-K: Registrant was not required to file, and
has not filed, a Form 8-K during the quarter for which this
report is being filed.
10
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
LENNAR CORPORATION
------------------------
(Registrant)
Date: April 14, 1995 /s/ ALLAN J. PEKOR
------------------------
Allan J. Pekor
Financial Vice President
Chief Financial Officer
Date: April 14, 1995 /s/ JAMES T. TIMMONS
------------------------
James T. Timmons
Controller
Chief Accounting Officer
11
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> NOV-30-1995
<PERIOD-END> FEB-28-1995
<CASH> 7,491
<SECURITIES> 0
<RECEIVABLES> 42,724
<ALLOWANCES> 0
<INVENTORY> 489,036
<CURRENT-ASSETS> 539,251
<PP&E> 230,790
<DEPRECIATION> (33,737)
<TOTAL-ASSETS> 1,275,207
<CURRENT-LIABILITIES> 130,929
<BONDS> 545,365
<COMMON> 3,581
0
0
<OTHER-SE> 545,170
<TOTAL-LIABILITY-AND-EQUITY> 1,275,207
<SALES> 132,973
<TOTAL-REVENUES> 181,183
<CGS> 106,870
<TOTAL-COSTS> 124,585
<OTHER-EXPENSES> 27,715
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,281
<INCOME-PRETAX> 24,602
<INCOME-TAX> 9,595
<INCOME-CONTINUING> 15,007
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 15,007
<EPS-PRIMARY> 0.42
<EPS-DILUTED> 0.42
</TABLE>
