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To: FJB who wrote (586518)	9/20/2010 3:47:07 PM
From: tejek	Respond to of 1575214

Lennar Reports Third Quarter EPS of $0.16 MIAMI, Sept 20, 2010 /PRNewswire via COMTEX/ -- Revenues of $825.0 million - up 14% Net earnings of $30.0 million compared to a net loss of $171.6 million EPS of $0.16 - compared to loss per share of $0.97 Lennar Homebuilding operating earnings of $38.1 million compared to a loss of $154.7 million Gross margin on home sales of 21.1% - improved 1,330 basis points S,G&A expenses as a % of revenues from home sales of 13.9% - improved 200 basis points Operating margin on home sales of 7.2% - improved 1,530 basis points Lennar Financial Services operating earnings of $6.8 million Rialto Investments operating earnings totaled $7.7 million (net of $10.8 million of net earnings attributable to noncontrolling interests) Deliveries of 2,950 homes - up 10% New orders of 2,624 homes - down 15% Cancellation rate of 18% Backlog of 2,173 homes - down 12% At August 31, 2010, Lennar Homebuilding cash and cash equivalents and restricted cash totaled $1.0 billion Lennar Homebuilding debt to total capital, net of Lennar Homebuilding cash and cash equivalents, of 44.1% Lennar Corporation , one of the nation's largest homebuilders, today reported results for its third quarter ended August 31, 2010. Third quarter net earnings attributable to Lennar in 2010 were $30.0 million, or $0.16 per diluted share, compared to third quarter net loss attributable to Lennar of $171.6 million, or $0.97 per diluted share, in 2009. Stuart Miller, President and Chief Executive Officer of Lennar Corporation, said, "During our third quarter, as expected, our sales pace declined as a result of the expiration of the Federal homebuyer tax credit at the end of April. Although high unemployment and foreclosures have continued to present challenges for the national housing market, our communities have been less impacted than the broader market." Mr. Miller continued, "In the context of today's market conditions, we have remained focused on improving our core business and are very pleased to report net earnings of $30 million for our third quarter. Our intense focus on fundamentals led to a strong third quarter homebuilding operating margin of 7.2%. In addition, we continued to work with our supply chain to lower construction costs, improve cycle times, and leverage our overhead structure." "Our Rialto Investments segment continued to add healthy profits to our bottom line as evidenced by its contribution of $7.7 million of operating earnings. Our strategic investments in the FDIC loan portfolios and in the PPIP fund are performing extremely well and are producing strong earnings for our company. Our disciplined approach to underwriting and investing in distressed opportunities holds us in good stead for future earnings growth." Mr. Miller concluded, "Although challenges still remain in the housing market, we are optimistic that our core businesses are on the right track to achieving sustainable profitability as the housing market recovers."