===============================================================================
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 quarterly period ended FEBRUARY 28, 1997
-------------------
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 107TH AVENUE, MIAMI, FLORIDA 33172
---------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (305)559-4000
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 26,016,432
----------
Class B Common 9,968,631
----------
===============================================================================
<PAGE>
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
LENNAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
FEBRUARY 28, NOVEMBER 30,
1997 1996
------------ ------------
<S> <C> <C>
ASSETS
HOMEBUILDING, INVESTMENT AND FINANCIAL SERVICES:
Homebuilding and investment assets:
Cash and cash equivalents $ 19,969 12,960
Receivables, net 47,421 62,158
Inventories:
Construction in progress and model homes 277,727 259,747
Land held for development 472,412 440,136
---------- ----------
Total inventories 750,139 699,883
Land held for investment 61,478 63,615
Operating properties and equipment, net 226,371 221,312
Investments in and advances to partnerships 135,940 139,578
Other assets 133,813 124,539
Financial services assets 412,577 382,083
---------- ----------
Total assets - homebuilding, investment and financial services 1,787,708 1,706,128
---------- ----------
LIMITED-PURPOSE FINANCE SUBSIDIARIES - COLLATERAL FOR BONDS AND NOTES PAYABLE 57,526 59,898
---------- ----------
$1,845,234 1,766,026
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
HOMEBUILDING, INVESTMENT AND FINANCIAL SERVICES:
Homebuilding and investment liabilities:
Accounts payable and other liabilities $ 167,848 186,735
Income taxes payable 18,624 26,045
Mortgage notes and other debts payable 579,036 509,672
Financial services liabilities 309,888 291,606
---------- ----------
Total liabilities - homebuilding, investment and financial services 1,075,396 1,014,058
---------- ----------
LIMITED-PURPOSE FINANCE SUBSIDIARIES - BONDS AND NOTES PAYABLE 54,564 56,512
---------- ----------
STOCKHOLDERS' EQUITY:
Common stock 2,602 2,594
Class B common stock 997 999
Additional paid-in capital 172,556 171,618
Retained earnings 530,898 512,345
Unrealized gain on securities available-for-sale, net 8,221 7,900
---------- ----------
Total stockholders' equity 715,274 695,456
---------- ----------
$1,845,234 1,766,026
========== ==========
</TABLE>
See accompanying notes to consolidated condensed financial statements.
1
<PAGE>
LENNAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED
FEBRUARY 28, FEBRUARY 29,
1997 1996
------------ ------------
REVENUES:
Homebuilding $207,847 174,882
Investment 39,711 31,561
Financial services 23,288 18,362
Limited-purpose finance subsidiaries 1,320 1,719
-------- --------
Total revenues 272,166 226,524
-------- --------
COSTS AND EXPENSES:
Homebuilding 193,625 160,924
Investment 21,101 15,391
Financial services 14,225 11,428
Limited-purpose finance subsidiaries 1,314 1,716
Corporate general and administrative 3,355 2,970
Interest 6,698 5,894
-------- --------
Total costs and expenses 240,318 198,323
--------- --------
EARNINGS BEFORE INCOME TAXES 31,848 28,201
INCOME TAXES 12,421 10,998
-------- --------
NET EARNINGS $ 19,427 17,203
-------- --------
AVERAGE SHARES OUTSTANDING 36,282 36,205
-------- --------
NET EARNINGS PER SHARE $ .54 .48
-------- --------
CASH DIVIDENDS PER COMMON SHARE $ .025 .025
-------- --------
CASH DIVIDENDS PER CLASS B COMMON SHARE $ .0225 .0225
-------- --------
See accompanying notes to consolidated condensed financial statements.
2
<PAGE>
<TABLE>
<CAPTION>
LENNAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS)
THREE MONTHS ENDED
FEBRUARY 28, FEBRUARY 29,
1997 1996
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 19,427 17,203
Adjustments to reconcile net earnings to net cash provided by (used in) operating
activities:
Depreciation and amortization 2,240 3,006
Equity in earnings of partnerships (15,271) (13,365)
Gains on sales of other real estate (1,920) (477)
Changes in assets and liabilities, net of effect of acquisition:
Decrease (increase) in receivables 16,669 (1,909)
Increase in inventories (47,782) (15,273)
Decrease (increase) in financial services' loans held for sale or disposition (4,028) 25,491
Decrease in accounts payable and other liabilities (15,978) (9,835)
Decrease (increase) in income taxes currently payable (7,421) 720
Other, net 16 (1,652)
--------- ---------
Net cash provided by (used in) operating activities (54,048) 3,909
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Operating properties and equipment:
Additions (10,971) (11,794)
Sales 4,001 2,000
Sales of land held for investment 4,593 109
Decrease in investments in and advances to partnerships 21,198 15,355
Increase in financial services' loans held for investment (155) (3,648)
Purchase of investment securities (47,476) (26,675)
Receipts from investment securities 9,725 12,365
Acquisition of business -- (108,500)
Other, net (814) (3,312)
--------- ---------
Net cash used in investing activities (19,899) (124,100)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings under revolving credit agreement 31,200 90,400
Net borrowings (repayments) under financial services' short-term debt (22,379) 11,273
Mortgage notes and other debts payable:
Proceeds from borrowings 84,635 23,047
Principal payments (14,363) (15,858)
Limited-purpose finance subsidiaries:
Principal reduction of mortgage loans and other receivables 2,467 3,548
Principal reduction of bonds and notes payable (2,481) (3,449)
Common stock:
Issuance 944 569
Dividends (874) (872)
--------- ---------
Net cash provided by financing activities 79,149 108,658
--------- ---------
Net increase (decrease) in cash and cash equivalents 5,202 (11,533)
Cash and cash equivalents at beginning of quarter 26,520 30,243
--------- ---------
Cash and cash equivalents at end of quarter $ 31,722 18,710
--------- ---------
Summary of cash and cash equivalent balances:
Homebuilding and investment $ 19,969 13,057
Financial services 11,753 5,653
--------- ---------
$ 31,722 18,710
--------- ---------
Supplemental disclosures of cash flow information:
Cash paid for interest, net of amounts capitalized $ 8,079 6,832
Cash paid for income taxes $ 19,364 12,422
--------- ---------
</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, all wholly-owned subsidiaries and partnerships
in which a controlling interest is held (the "Company"). All significant
intercompany transactions and balances have been eliminated. The Company's
investments in partnerships (and similar entities) in which less than a
controlling interest is held 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, 1996 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 rental
properties and land. This division also manages and participates in partnerships
with financial institutions. This division acquires, at a discount, issues of
the unrated portion of debt securities which are collateralized by commercial
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 these
securities. The division earns interest on its investment as well as fees for
the special servicing activities.
Financial services activities are conducted primarily through Lennar Financial
Services, Inc. ("LFS") and its subsidiaries. These companies arrange mortgage
financing, title insurance and closing services for Lennar homebuyers and
others; acquire, package and resell residential and commercial mortgage loans
and mortgage-backed securities and perform mortgage loan servicing activities.
This division also invests in issues of 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
share equivalents outstanding during the period.
4
<PAGE>
(4) ACCOUNTING CHANGES
In March 1995, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 121, "Accounting for the Impairment
of Long-Lived Assets and for Long-Lived Assets to be Disposed Of". SFAS No. 121
requires companies to evaluate long-lived assets for impairment based on the
undiscounted future cash flows of the asset. If a long-lived asset is identified
as impaired, the value of the asset must be reduced to its fair value. The
Company's land holdings and operating properties are considered long-lived
assets under this pronouncement. The Company's adoption of SFAS No. 121 in the
first quarter of 1997 did not have any material affect on the Company's
financial position or results of operation.
In May 1995, the Financial Accounting Standards Board issued SFAS No. 122,
"Accounting for Mortgage Servicing Rights". SFAS No. 122, among other
provisions, requires the recognition of originated mortgage servicing rights as
assets by allocating total costs incurred in originating a loan between the loan
and the servicing rights based on their relative fair values. Previously, the
cost of originated mortgage servicing rights was included with the costs of the
related loans and written off against income when the loans were sold. Also,
under SFAS No. 122, all capitalized mortgage servicing rights are evaluated for
impairment based on the excess of the carrying amount of the mortgage servicing
rights over their fair value. The Company adopted SFAS No. 122 effective
December 1, 1996. The adoption of this statement resulted in an increase of $.3
million of after-tax net earnings in the first quarter of 1997. In accordance
with SFAS No. 122, prior period financial statements have not been restated.
(5) RESTRICTED CASH
Cash includes restricted deposits of $2.4 million and $2.5 million as of
February 28, 1997 and November 30, 1996, respectively. These balances are
comprised primarily of escrow deposits held related to sales of homes and
security deposits from tenants of commercial and apartment properties.
(6) FINANCIAL SERVICES
The assets and liabilities related to the Company's financial services
operations (as described in Note 2) are summarized as follows:
(UNAUDITED)
FEBRUARY 28, NOVEMBER 30,
(IN THOUSANDS) 1997 1996
------------ ------------
Assets:
Investment securities available-for-sale $224,869 193,869
Loans held for sale or disposition, net 132,109 127,606
Loans and mortgage-backed securities
held for investment, net 21,625 21,323
Investments in and advances to partnerships 9,138 11,428
Cash and receivables, net 18,485 22,224
Other 6,351 5,633
-------- --------
$412,577 382,083
======== ========
Liabilities:
Notes and other debts payable $286,845 271,314
Other 23,043 20,292
-------- --------
$309,888 291,606
======== ========
5
<PAGE>
(7) SUMMARY OF NONCASH INVESTING AND FINANCIAL ACTIVITIES
During the first quarter of 1997, the Company acquired certain land held for
development for $7.8 million. Of this amount, $2.0 million was paid in cash and
the balance of $5.8 million was financed by the seller. During the first quarter
of 1996, the Company acquired commercial mortgage-backed securities for $37.8
million. Of this amount, $26.7 million was paid in cash and the balance of $11.1
million was financed by the sellers. Also in 1996, the Company acquired a
commercial property for $26.1 million, of which $8.7 million was paid in cash
and the Company assumed a $17.4 million mortgage.
(8) RECLASSIFICATIONS
Certain prior year amounts in the consolidated condensed financial statements
have been reclassified to conform with the current period presentation.
6
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
CERTAIN STATEMENTS CONTAINED IN THE FOLLOWING MANAGEMENT'S DISCUSSION AND
ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION MAY BE
"FORWARD-LOOKING STATEMENTS" AS DEFINED IN THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995. SUCH STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS,
UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY. SUCH FACTORS INCLUDE, BUT ARE NOT LIMITED TO, CHANGES IN GENERAL
ECONOMIC CONDITIONS, MATERIAL AND LABOR COSTS, INTEREST RATES, CONSUMER
CONFIDENCE, COMPETITION, ENVIRONMENTAL FACTORS AND GOVERNMENT REGULATIONS
AFFECTING THE COMPANY'S OPERATIONS. SEE THE COMPANY'S ANNUAL REPORT ON FORM 10-K
FOR THE YEAR ENDED NOVEMBER 30, 1996 FOR A FURTHER DISCUSSION OF THESE AND OTHER
RISKS AND UNCERTAINTIES APPLICABLE TO THE COMPANY'S BUSINESS.
(1) MATERIAL CHANGES IN RESULTS OF OPERATIONS.
OVERVIEW
Net earnings for the three months ended February 28, 1997 were $19.4 million,
compared to $17.2 million for the same period in 1996. The increase in 1997 was
due to higher operating earnings from the Homebuilding, Investment and Financial
Services Divisions which were partially offset by higher interest expense and
corporate general and administrative expenses.
HOMEBUILDING
The following tables set forth selected financial and operational information
related to the Homebuilding Division for the periods indicated (unaudited):
(DOLLARS IN THOUSANDS, EXCEPT THREE MONTHS ENDED
AVERAGE SALES PRICES) FEBRUARY 28, FEBRUARY 29,
1997 1996
REVENUES: ------------ ------------
Sales of homes $196,949 169,396
Other 10,898 5,486
-------- --------
Total revenues 207,847 174,882
COSTS AND EXPENSES:
Cost of homes sold 161,041 138,135
Cost of other revenues 4,967 2,756
Selling, general and administrative 27,617 20,033
-------- --------
Total costs and expenses 193,625 160,924
-------- --------
OPERATING EARNINGS $ 14,222 13,958
======== ========
Gross profit - home sales $ 35,908 31,261
Gross profit percentage 18.2% 18.5%
S,G&A as a percentage of homebuilding revenues 13.3% 11.5%
Average sales price $156,700 144,000
======== =======
7
<PAGE>
SUMMARY OF HOME AND BACKLOG DATA
THREE MONTHS ENDED
FEBRUARY 28, FEBRUARY 29,
1997 1996
DELIVERIES ------------ ------------
Florida 612 760
Arizona 142 126
Texas 471 290
California 32 --
-------- --------
1,257 1,176
======== ========
NEW ORDERS
Florida 780 832
Arizona 147 185
Texas 437 428
California 91 --
-------- --------
1,455 1,445
======== ========
BACKLOG - HOMES
Florida 1,373 1,389
Arizona 252 361
Texas 404 524
California 98 --
-------- --------
2,127 2,274
-------- --------
BACKLOG - DOLLAR VALUE (in thousands) $350,616 336,755
======== ========
Homebuilding revenues in the three-month period ended February 28, 1997 were
$207.8 million, compared to $174.9 million during the same period of 1996.
Homebuilding revenues were higher in the first quarter of 1997 due to a higher
number of home deliveries and an increase in the average sales price. New home
deliveries for the 1997 three-month period were 1,257, compared to 1,176 for the
same period of 1996. The average sales price of a home delivered during the
three-month period ended February 28, 1997 was $156,700, compared to $144,000
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 and
price increases for existing products.
The gross profit percentage from the sales of homes was 18.2% in the first
quarter of 1997, compared to 18.5% in the corresponding period of last year.
This decrease was primarily attributable to start-up costs related to the
division's expansion into California. Start-up costs, including field
supervisory salaries and construction overhead, are expensed as incurred.
Selling, general and administrative expenses in the Homebuilding Division were
$27.6 million and $20.0 million, respectively, in the three months ended
February 28, 1997 and during the same period of 1996. The higher level of
expenses in 1997 was attributable to additional expenses associated with the
increased sales revenues, additional expenses resulting from start-up costs in
California, as well as additional expenses associated with new communities in
the Company's other markets. As a result of these factors, selling, general and
administrative expenses as a percentage of total homebuilding revenues increased
from 11.5% in the first quarter of 1996 to 13.3% in the first quarter of 1997.
Increased revenues from California, in the second half of the year, should
result in a selling, general and administrative percentage which is more
consistent with 1996 levels.
8
<PAGE>
INVESTMENT
The following table presents the selected financial data related to
the Investment Division for the periods indicated (unaudited):
THREE MONTHS ENDED
FEBRUARY 28, FEBRUARY 29,
(IN THOUSANDS) 1997 1996
------------ ------------
REVENUES
Rental income $14,616 13,412
Equity in earnings of partnerships 8,860 9,174
Management fees 4,284 4,330
Sales of other real estate 7,653 2,109
Other 4,298 2,536
------- -------
Total revenues 39,711 31,561
COST OF SALES AND EXPENSES 21,101 15,391
------- -------
OPERATING EARNINGS $18,610 16,170
======= =======
Investment Division revenues increased to $39.7 million in the first quarter of
1997, compared to $31.6 million in the same period of 1996. Operating earnings
from the Investment Division increased to $18.6 million in the first three
months of fiscal 1997 from $16.2 million in the corresponding period of 1996.
The increase in revenues and operating earnings was mainly attributable to
increases in sales of other real estate and other revenues generated as a result
of the division's increased investment in commercial mortgage-backed securities.
Equity in earnings of partnerships and management fees were down slightly in the
first quarter of 1997 when compared to the first quarter of 1996. A significant
portion of partnership earnings and management fees are derived from loan
payoffs and asset sales which can vary substantially from period to period.
FINANCIAL SERVICES
The following table presents the selected financial data related to the
Financial Services Division for the periods indicated (unaudited):
THREE MONTHS ENDED
FEBRUARY 28, FEBRUARY 29,
(DOLLARS IN THOUSANDS) 1997 1996
------------ ------------
REVENUES $ 23,288 18,362
COSTS AND EXPENSES 14,225 11,428
INTERCOMPANY INTEREST EXPENSE 16 140
---------- ----------
OPERATING EARNINGS $ 9,047 6,794
---------- ----------
Dollar volume of mortgages originated $ 67,819 153,868
---------- ----------
Number of mortgages originated 597 1,305
---------- ----------
Principal balance of servicing portfolio $3,236,862 3,362,332
---------- ----------
Number of loans serviced 41,400 43,720
========== ==========
Operating earnings of the Financial Services Division increased to $9.0 million
in the first quarter of 1997, compared to $6.8 million in the same period of
last year. This increase was primarily attributable to $1.2 million in operating
earnings from the division's investment in commercial mortgage-backed securities
and commercial loans and $.5 million from the
9
<PAGE>
implementation of Statement of Financial Accounting Standards No. 122
"Accounting for Mortgage Servicing Rights". Mortgage loan originations were
lower for the first quarter of 1997, when compared to the same period in 1996,
due to a decrease in the division's involvement in the less profitable wholesale
loan origination business.
INTEREST EXPENSE
Interest expense during the three-month period ended February 28, 1997 was $6.7
million, compared to $5.9 million in the corresponding period of the prior year.
The increase in interest expense was the result of higher debt levels.
Previously capitalized interest charged to expense during the first quarters of
1997 and 1996 was $3.8 million and $4.1 million, respectively.
(2) MATERIAL CHANGES IN FINANCIAL CONDITION.
During the three months ended February 28, 1997, $54.0 million in cash was used
by the Company's operations, compared to $3.9 million provided during the
corresponding period of the prior year. The Company's primary use of cash was
$47.8 million to increase inventories through land purchases, land development
and construction. In addition, $16.0 million was used to decrease accounts
payable and other liabilities. These uses of cash were partially offset by $19.4
million provided by net earnings and $16.7 million provided by the decrease in
receivables.
In the fiscal 1996 period, sources of cash flow consisted primarily of net
earnings and a $25.5 million decrease in loans held for sale or disposition by
the Company's Financial Services Division. These sources of cash were partially
offset by the use of $15.3 million to increase inventories.
Cash used in investing activities was $19.9 million in the first quarter of
1997, compared to $124.1 million in the first quarter of 1996. During the 1997
quarter, $47.5 million was used to purchase investment securities (commercial
mortgage-backed securities) by both the Investment and Financial Services
Divisions and $11.0 million was used to acquire operating properties. These uses
of cash were partially offset by $21.2 million of cash provided by the Company's
investments in partnerships and $9.7 million of sales and principal payments
provided by the Company's portfolio of investment securities. In the 1996
period, the primary uses of cash were $108.5 million for the acquisition of the
assets and operations of Friendswood Development Company, $11.8 million for the
acquisition of operating properties and $26.7 million for the purchase of
investment securities (commercial mortgage-backed securities) by both the
Investment and Financial Services Divisions. These uses of cash were partially
offset by $15.4 million of cash provided by the Company's investments in
partnerships.
At February 28, 1997, the Company had an unsecured revolving credit agreement
with a five-year commitment of $450.0 million. Certain Financial Services
Division subsidiaries are co-borrowers under this facility and at February 28,
1997 their borrowings under this agreement amounted to $77.0 million. The total
amount outstanding under the Company's revolving credit agreement at February
28, 1997 was $356.1 million.
10
<PAGE>
PART II OTHER INFORMATION
ITEMS 1-3. NOT APPLICABLE.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The following matters were resolved by vote at the April 8, 1997
annual meeting of stockholders of Lennar Corporation:
The following members of the Board of Directors were
re-elected to hold office until 2000:
Robert B. Cole
Arnold P. Rosen
Other directors whose term of office continued after the
meeting:
Charles I. Babcock, Jr.
Irving Bolotin
Leonard Miller
Stuart A. Miller
Steven J. Saiontz
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.
11
<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 11, 1997 /s/ ALLAN J. PEKOR
-------------- ----------------------------
Allan J. Pekor
Financial Vice President
Chief Financial Officer
Date: APRIL 11, 1997 /s/ JAMES T. TIMMONS
-------------- ---------------------------
James T. Timmons
Controller
Chief Accounting Officer
12
<PAGE>
INDEX TO EXHIBITS
SEQUENTIALLY
EXHIBIT NUMBERED
NUMBER DESCRIPTION PAGE
- ------- ----------- ------------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> NOV-30-1997
<PERIOD-START> DEC-01-1996
<PERIOD-END> FEB-28-1997
<CASH> 19,969
<SECURITIES> 0
<RECEIVABLES> 47,421
<ALLOWANCES> 0
<INVENTORY> 750,139
<CURRENT-ASSETS> 817,529
<PP&E> 270,294
<DEPRECIATION> (43,923)
<TOTAL-ASSETS> 1,845,234
<CURRENT-LIABILITIES> 186,472
<BONDS> 920,445
0
0
<COMMON> 3,599
<OTHER-SE> 711,675
<TOTAL-LIABILITY-AND-EQUITY> 1,845,234
<SALES> 196,949
<TOTAL-REVENUES> 272,166
<CGS> 161,041
<TOTAL-COSTS> 187,109
<OTHER-EXPENSES> 46,511
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6,698
<INCOME-PRETAX> 31,848
<INCOME-TAX> 12,421
<INCOME-CONTINUING> 19,427
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 19,427
<EPS-PRIMARY> 0.54
<EPS-DILUTED> 0.54
</TABLE>
