-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Fk9Y6p8c5GxFE852c8Un5933w5E/78kVFkgUWMLv3Bwt8+mbCf1SpFhs7OevsXsR oyk5H4eSYlEDBmnzGPfu5Q== 0000950170-96-000452.txt : 19960715 0000950170-96-000452.hdr.sgml : 19960715 ACCESSION NUMBER: 0000950170-96-000452 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960531 FILED AS OF DATE: 19960712 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: LENNAR CORP CENTRAL INDEX KEY: 0000058696 STANDARD INDUSTRIAL CLASSIFICATION: OPERATIVE BUILDERS [1531] IRS NUMBER: 591281887 STATE OF INCORPORATION: DE FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-06643 FILM NUMBER: 96594027 BUSINESS ADDRESS: STREET 1: 700 NW 107TH AVE CITY: MIAMI STATE: FL ZIP: 33172 BUSINESS PHONE: 3055594000 10-Q 1 ================================================================================ 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 MAY 31, 1996 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 25,919,427 Class B Common 9,984,831 ================================================================================ PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS
LENNAR CORPORATION AND SUBSIDIARIES Consolidated Condensed Balance Sheets (In thousands) (Unaudited) May 31, November 30, 1996 1995 - ------------------------------------------------------------------------------------------------------------------------ ASSETS HOMEBUILDING, INVESTMENT AND FINANCIAL SERVICES: Homebuilding and investment assets: Cash and cash equivalents $ 10,206 21,870 Receivables, net 86,002 70,202 Inventories: Construction in progress and model homes 273,131 199,774 Land held for development 384,312 304,630 --------------------------------- Total inventories 657,443 504,404 Land held for investment 73,045 72,976 Operating properties and equipment, net 216,650 189,341 Investments in and advances to partnerships 143,928 114,240 Other assets 54,185 40,792 Financial services assets 361,500 353,809 - ------------------------------------------------------------------------------------------------------------------------ Total assets - homebuilding, investment and financial services 1,602,959 1,367,634 - ----------------------------------------------------------------------------------------------------------------------- LIMITED-PURPOSE FINANCE SUBSIDIARIES - COLLATERAL FOR BONDS AND NOTES PAYABLE 66,443 74,728 - ------------------------------------------------------------------------------------------------------------------------ $ 1,669,402 1,442,362 ======================================================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY HOMEBUILDING, INVESTMENT AND FINANCIAL SERVICES: Homebuilding and investment liabilities: Accounts payable and accrued liabilities $ 123,034 114,833 Customer deposits 18,978 14,441 Income taxes: Currently payable 3,130 12,219 Deferred 37,501 42,611 Mortgage notes and other debts payable 508,716 336,633 Financial services liabilities 274,302 243,191 - ------------------------------------------------------------------------------------------------------------------------ Total liabilities - homebuilding, investment and financial services 965,661 763,928 - ------------------------------------------------------------------------------------------------------------------------ LIMITED-PURPOSE FINANCE SUBSIDIARIES - BONDS AND NOTES PAYABLE 62,680 70,640 - ------------------------------------------------------------------------------------------------------------------------ STOCKHOLDERS' EQUITY: Common stock 2,592 2,588 Class B common stock 999 999 Additional paid-in capital 171,306 170,586 Retained earnings 461,602 427,851 Unrealized gain on securities available-for-sale, net 4,562 5,770 - ------------------------------------------------------------------------------------------------------------------------ Total stockholders' equity 641,061 607,794 - ------------------------------------------------------------------------------------------------------------------------ $ 1,669,402 1,442,362 ========================================================================================================================
See accompanying notes to consolidated condensed financial statements. 1 LENNAR CORPORATION AND SUBSIDIARIES Consolidated Condensed Statements of Earnings (Unaudited) (In thousands, except per share amounts)
Three Months Ended Six Months Ended May 31, May 31, 1996 1995 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------- REVENUES: Homebuilding $ 202,220 147,194 377,102 285,621 Investment 33,510 48,213 65,071 76,768 Financial services 20,913 13,187 39,275 25,318 Limited-purpose finance subsidiaries 1,610 1,938 3,329 4,008 - ------------------------------------------------------------------------------------------------------------------------------- Total revenues 258,253 210,532 484,777 391,715 - ------------------------------------------------------------------------------------------------------------------------------- COSTS AND EXPENSES: Homebuilding 186,737 136,727 347,661 263,844 Investment 15,722 23,670 31,113 36,923 Financial services 13,665 8,911 25,093 17,169 Limited-purpose finance subsidiaries 1,629 1,934 3,345 3,998 Corporate general and administrative 3,010 2,841 5,980 5,297 Interest 7,501 4,192 13,395 7,625 - ------------------------------------------------------------------------------------------------------------------------------- Total costs and expenses 228,264 178,275 426,587 334,856 - ------------------------------------------------------------------------------------------------------------------------------- EARNINGS BEFORE INCOME TAXES 29,989 32,257 58,190 56,859 INCOME TAXES 11,696 12,580 22,694 22,175 - ------------------------------------------------------------------------------------------------------------------------------- NET EARNINGS $ 18,293 19,677 35,496 34,684 - ------------------------------------------------------------------------------------------------------------------------------- AVERAGE SHARES OUTSTANDING 36,220 36,100 36,213 36,069 - ------------------------------------------------------------------------------------------------------------------------------- NET EARNINGS PER SHARE $ .51 .55 .98 .96 =============================================================================================================================== - ------------------------------------------------------------------------------------------------------------------------------- CASH DIVIDENDS PER COMMON SHARE $ .025 .025 .05 .05 - ------------------------------------------------------------------------------------------------------------------------------- CASH DIVIDENDS PER CLASS B COMMON SHARE $ .0225 .0225 .045 .045 ===============================================================================================================================
2 See accompanying notes to consolidated condensed financial statements. LENNAR CORPORATION AND SUBSIDIARIES Consolidated Condensed Statements of Cash Flows (Unaudited) (In thousands)
Six Months Ended May 31, 1996 1995 - ----------------------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $ 35,496 34,684 Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: Depreciation and amortization 6,178 5,488 Equity in earnings of partnerships (24,471) (15,308) Gains on sales of other real estate (2,532) (13,190) Increase (decrease) in deferred income taxes (5,110) 3,214 Changes in assets and liabilities, net of effect of acquisition: Decrease (increase) in receivables (4,401) 11,300 Increase in inventories (45,818) (37,936) Decrease (increase) in financial services' loans held for sale or disposition 14,718 (525) Increase (decrease) in accounts payable and accrued liabilities (4,985) 1,361 Other, net (2,903) (7,237) - ----------------------------------------------------------------------------------------------------------------------------------- Net cash used in operating activities (33,828) (18,149) - ----------------------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Additions to operating properties and equipment (13,401) (7,704) Sales of operating properties and equipment 3,475 17,944 Sales of land held for investment 4,242 7,741 Decrease in investments in and advances to partnerships 4,610 18,677 Increase in financial services' loans held for investment (6,270) (29,546) Purchase of investment securities (73,119) (29,541) Receipts from investment securities 42,137 7,242 Acquisition of business (110,505) - Other, net 1,957 (1,015) - ----------------------------------------------------------------------------------------------------------------------------------- Net cash used in investing activities (146,874) (16,202) - ----------------------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Net borrowings under revolving credit agreement 220,200 72,000 Net borrowings (repayments) under financial services' short-term debt (1,707) 28,225 Mortgage notes and other debts payable: Proceeds from borrowings 51,467 3,044 Principal payments (96,912) (72,032) Limited-purpose finance subsidiaries: Principal reduction of mortgage loans and other receivables 8,487 8,943 Principal reduction of bonds and notes payable (8,188) (8,455) Common stock: Issuance 724 660 Dividends (1,745) (1,740) - ----------------------------------------------------------------------------------------------------------------------------------- Net cash provided by financing activities 172,326 30,645 - ----------------------------------------------------------------------------------------------------------------------------------- Net decrease in cash and cash equivalents (8,376) (3,706) Cash and cash equivalents at beginning of period 30,243 17,942 - ----------------------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of period $ 21,867 14,236 =================================================================================================================================== Summary of cash and cash equivalent balances: Homebuilding and investment $ 10,206 8,437 Financial services 11,661 5,799 - ----------------------------------------------------------------------------------------------------------------------------------- $ 21,867 14,236 =================================================================================================================================== Supplemental disclosures of cash flow information: Cash paid for interest, net of amounts capitalized $ 15,138 10,441 Cash paid for income taxes $ 36,369 27,307 ===================================================================================================================================
3 See accompanying notes to consolidated condensed financial statements 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, 1995 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 participates in and manages partnerships with financial institutions. Since 1994, this division has been acquiring, at a discount, issues of the unrated portion 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, Inc. ("LFS") and five subsidiaries: Universal American Mortgage Company, AmeriStar Financial Services, Inc., Universal Title Insurors, Inc., Lennar Capital Corporation and TitleAmerica Insurance Corporation. 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 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) ACQUISITION On December 29, 1995, the Company purchased the assets and operations of the residential business of Friendswood Development Company, the real estate subsidiary of Exxon Corporation, for $110.5 million in cash. The Company financed this transaction through borrowings under its existing revolving credit agreement. The acquisition of these assets and operations has been accounted for using the purchase method of accounting. 4 (4) 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. (5) RESTRICTED CASH Cash includes restricted deposits of $2.5 million and $3.1 million as of May 31, 1996 and November 30, 1995, respectively. These balances are comprised primarily of escrow deposits related to new home sales 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) May 31, November 30, (IN THOUSANDS) 1996 1995 ----------------------------------------------------------------------------------------- Assets: Investment securities available-for-sale $ 164,864 141,832 Loans held for sale or disposition, net 133,321 123,842 Loans and mortgage-backed securities held for investment, net 23,017 43,506 Investments in and advances to partnerships 17,474 27,301 Cash and receivables, net 18,544 14,416 Other 4,280 2,912 ----------------------------------------------------------------------------------------- $ 361,500 353,809 ========================================================================================= Liabilities: Notes and other debts payable $ 257,928 228,488 Other 16,374 14,703 ----------------------------------------------------------------------------------------- $ 274,302 243,191 =========================================================================================
(7) SUMMARY OF NON-CASH INVESTING AND FINANCING ACTIVITIES During the six months ended May 31, 1996, the Company acquired commercial mortgage-backed securities for $84.2 million. Of this amount, $73.1 million was paid in cash and the balance of $11.1 million was financed by the sellers. During the same period of 1995, the Company acquired commercial mortgage-backed securities for $33.7 million. Of this amount, $22.3 million was paid in cash and the balance of $11.4 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. 5 Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (1) MATERIAL CHANGES IN RESULTS OF OPERATIONS. OVERVIEW Net earnings were $18.3 million and $35.5 million, respectively, for the three-month and six-month periods ended May 31, 1996, compared to $19.7 million and $34.7 million, respectively, for the same periods in 1995. The quarterly and year-to-date 1996 operating earnings for the Homebuilding and Financial Services Divisions increased from the same periods in 1995. Operating earnings for the Investment Division were lower than last year as a result of a significant sale of real estate which occurred in the second quarter of 1995. There were no sales of comparable size in 1996. Additionally, interest expense was higher for both the three-month and six-month periods of 1996 primarily as a result of higher debt levels. HOMEBUILDING The following tables set forth selected financial and operational information related to the Homebuilding Division for the periods indicated (unaudited):
Three Months Ended Six Months Ended (DOLLARS IN THOUSANDS, EXCEPT May 31, May 31, AVERAGE SALES PRICES) 1996 1995 1996 1995 - -------------------------------------------------------------------------------------------------- REVENUES: Sales of homes $ 191,745 143,520 361,141 276,493 Other 10,475 3,674 15,961 9,128 - -------------------------------------------------------------------------------------------------- Total revenues 202,220 147,194 377,102 285,621 COSTS AND EXPENSES: Cost of homes sold 156,739 116,320 294,874 223,190 Cost of other revenues 6,208 2,823 8,964 7,284 Selling, general and administrative 23,790 17,584 43,823 33,370 - -------------------------------------------------------------------------------------------------- Total costs and expenses 186,737 136,727 347,661 263,844 - -------------------------------------------------------------------------------------------------- OPERATING EARNINGS $ 15,483 10,467 29,441 21,777 ================================================================================================== Gross profit - home sales $ 35,006 27,200 66,267 53,303 Gross profit percentage 18.3% 19.0% 18.3% 19.3% S,G&A as a percentage of homebuilding revenues 11.8% 11.9% 11.6% 11.7% Average sales price $ 141,500 $ 140,200 142,700 139,600 ==================================================================================================
6
SUMMARY OF HOME AND BACKLOG DATA Three Months Ended Six Months Ended May 31, May 31, DELIVERIES 1996 1995 1996 1995 -------------------------------------------------------------------------------------------------- Florida 727 741 1,487 1,440 Arizona 190 122 316 232 Texas 438 161 728 308 -------------------------------------------------------------------------------------------------- 1,355 1,024 2,531 1,980 ================================================================================================== NEW ORDERS -------------------------------------------------------------------------------------------------- Florida 989 1,055 1,821 1,764 Arizona 219 152 404 244 Texas 593 227 1,021 383 -------------------------------------------------------------------------------------------------- 1,801 1,434 3,246 2,391 ================================================================================================== BACKLOG - HOMES -------------------------------------------------------------------------------------------------- Florida 1,651 1,646 Arizona 390 250 Texas 679 218 -------------------------------------------------------------------------------------------------- 2,720 2,114 -------------------------------------------------------------------------------------------------- BACKLOG - DOLLAR VALUE (IN THOUSANDS) $428,144 296,507 ==================================================================================================
Homebuilding revenues in the three-month and six-month periods ended May 31, 1996 were $202.2 million and $377.1 million, respectively, compared to $147.2 million and $285.6 million, respectively, for the same periods in 1995. Homebuilding revenues were higher in both of the 1996 periods due to a higher number of home deliveries and an increase in the average sales price. New home deliveries for the 1996 three-month and six-month periods were 1,355 and 2,531, respectively, compared to 1,024 and 1,980, respectively, for the same periods of 1995. The average sales prices of homes delivered during the three-month and six-month periods ended May 31, 1996 were $141,500 and $142,700, respectively, compared to $140,200 and $139,600, respectively, in the corresponding periods of the prior year. The higher average sales price was due to a proportionately greater number of sales of higher priced homes. Gross profit percentages from the sales of homes were 18.3% in both the three-month and six-month periods ending May 31, 1996, compared to 19.0% and 19.3%, respectively, in the corresponding periods of the prior year. These decreases were primarily attributable to an increase in costs related to the mix of homes delivered. Selling, general and administrative expenses increased to $23.8 million and $43.8 million for the three-month and six-month periods ended May 31, 1996, respectively, from $17.6 million and $33.4 million, respectively, for the comparable periods in 1995. These increases in expenses were primarily the result of the acquisition of Friendswood Development Company and additional expenses associated with the increased sales revenues. Also, contributing to the increases were additional expenses relating to the Company's homebuilding expansion into California and start-up expenses for a new adult community in the Orlando area. As a percentage of homebuilding revenues, selling, general and administrative expenses remained relatively constant at 11.8% and 11.6%, respectively, for the three-month and six-month periods ended May 31, 1996 compared to 11.9% and 11.7%, respectively, for the same periods in 1995. 7 At May 31, 1996, the Company had approximately $428.1 million (2,720 homes) of sales contracts in backlog, as compared to $296.5 million (2,114 homes) at the end of the same period a year ago. The increase in the backlog was attributable to an increase in new orders, including Village Builders (the homebuilding operation of Friendswood Development Company). INVESTMENT The following table presents the selected financial data related to the Investment Division for the periods indicated (unaudited):
Three Months Ended Six Months Ended May 31, May 31, (DOLLARS IN THOUSANDS) 1996 1995 1996 1995 --------------------------------------------------------------------------------------------------------- REVENUES: Rental income $ 15,216 12,740 28,628 25,678 Equity in earnings of partnerships 6,394 6,179 15,568 15,437 Management fees 5,828 2,575 10,158 5,198 Sales of other real estate 3,205 24,279 5,314 25,679 Other 2,867 2,440 5,403 4,776 --------------------------------------------------------------------------------------------------------- Total revenues 33,510 48,213 65,071 76,768 COST OF SALES AND EXPENSES 15,722 23,670 31,113 36,923 --------------------------------------------------------------------------------------------------------- OPERATING EARNINGS $ 17,788 24,543 33,958 39,845 =========================================================================================================
For the three-month and six-month periods ended May 31, 1996, Investment Division revenues were $33.5 million and $65.1 million, respectively, compared to $48.2 million and $76.8 million, respectively, in the same periods of 1995. Operating earnings were $17.8 million and $34.0 million, respectively, in the second quarter and first six months of 1996, compared to $24.5 million and $39.8 million, respectively, in the corresponding periods of 1995. The decreases in revenues and operating earnings for the 1996 three-month and six-month periods were primarily due to the decline in sales of other real estate. In the second quarter of 1995, a recreational facility was sold for $16.5 million. There were no sales of comparable size in 1996. The decreases in revenues and operating earnings from sales of other real estate were partially offset by increases in rental income and management fees. Rental income on operating properties increased primarily as a result of the acquisition of an additional commercial property during the first quarter of 1996. Management fees increased primarily as a result of incentive fees received from the partnerships managed by the division. 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. 8 FINANCIAL SERVICES The following table presents the selected financial data related to the Financial Services Division for the periods indicated (unaudited):
Three Months Ended Six Months Ended May 31, May 31, (DOLLARS IN THOUSANDS) 1996 1995 1996 1995 --------------------------------------------------------------------------------------------------------- REVENUES $ 20,913 13,187 39,275 25,318 COSTS AND EXPENSES 13,665 8,911 25,093 17,169 INTERCOMPANY INTEREST EXPENSE 46 630 186 1,200 --------------------------------------------------------------------------------------------------------- OPERATING EARNINGS $ 7,202 3,646 13,996 6,949 ========================================================================================================= Dollar volume of mortgages originated $ 141,909 137,878 295,777 264,978 --------------------------------------------------------------------------------------------------------- Number of mortgages originated 1,300 1,300 2,600 2,500 --------------------------------------------------------------------------------------------------------- Principal balance of servicing portfolio $ 3,332,331 3,351,402 --------------------------------------------------------------------------------------------------------- Number of loans serviced 43,000 44,600 =========================================================================================================
Operating earnings of the Financial Services Division were $7.2 million and $14.0 million, respectively, for the three-month and six-month periods ended May 31, 1996, compared to $3.6 million and $6.9 million, respectively, for the same periods of 1995. These increases were attributable to additional operating earnings from the division's traditional mortgage banking and title operations, as well as an increase in operating earnings from the division's investment in commercial mortgage-backed securities, commercial loans and partnerships. INTEREST EXPENSE Interest expense during the three-month and six-month periods ended May 31, 1996 was $7.5 million and $13.4 million, respectively, compared to $4.2 million and $7.6 million, respectively, in the corresponding periods of the prior year. The increase in interest expense was primarily the result of higher debt levels due to the Homebuilding Division's expansion in Texas and into California, as well as an increase in the number of homes delivered which increased the amount of previously capitalized interest charged to expense. Previously capitalized interest charged to interest expense during the second quarter and first six months of 1996 was $4.5 million and $8.6 million, respectively, compared to $3.8 million and $7.3 million, respectively, for the comparable periods last year. 9 (2) MATERIAL CHANGES IN FINANCIAL CONDITION. During the six months ended May 31, 1996, $33.8 million was used in the Company's operations, compared to $18.1 million used during the corresponding period of the prior year. The primary use of cash in the first half of 1996 was $45.8 million to increase inventories through land purchases, land development and seasonal increases in construction in progress. The use of cash was partially offset by a $14.7 million decrease in loans held for sale or disposition by the Company's Financial Services Division. In the fiscal 1995 period, the use of cash from operating activities consisted primarily of $37.9 million to increase inventories. The use of cash was partially offset by $11.3 million of cash provided by a decrease in receivables. Cash used in investing activities was $146.9 million in the first six months of 1996, compared to $16.2 million used in the first six months of 1995. During 1996, the use of cash was primarily due to the $110.5 million acquisition of the assets and operations of Friendswood Development Company and $73.1 million used to purchase investment securities (commercial mortgage-backed securities) by both the Investment and Financial Services Divisions. These uses of cash were partially offset by $42.1 million of sales and principal payments provided by the Company's portfolio of investment securities. In addition, $4.6 million of cash was provided by the Company's partnerships. This was comprised of $40.6 million of distributions from partnerships, partially offset by investment in two new Southern California residential land development partnerships totaling $36.0 million. During 1995, the use of cash was primarily due to $29.5 million to increase loans held for investment by the Company's financial services operations and $29.5 million to acquire additional investment securities. These uses of cash were partially offset by $18.7 million provided by the Company's investments in partnerships and $17.9 million from sales of operating properties. At May 31, 1996, the Company had an unsecured revolving credit agreement with a five-year commitment of $450 million. Certain Financial Services Division subsidiaries are co-borrowers under this facility and at May 31, 1996 their borrowings under this agreement amounted to $74.0 million. The total amount outstanding under the Company's revolving credit agreement at May 31, 1996 was $391.4 million. 10 PART II OTHER INFORMATION ITEMS 1-5. 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. 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: JULY 9, 1996 ALLAN J. PEKOR -------------- ------------------------------- Allan J. Pekor Financial Vice President Chief Financial Officer Date: JULY 9, 1996 JAMES T. TIMMONS -------------- -------------------------------- James T. Timmons Controller Chief Accounting Officer EX-27 2
5 1,000 6-MOS NOV-30-1996 MAY-31-1996 10,206 0 86,002 0 657,443 753,651 256,479 (39,829) 1,669,402 145,142 829,324 0 0 3,591 637,470 1,669,402 361,141 484,777 294,874 334,951 78,241 0 13,395 58,190 22,694 35,496 0 0 0 35,496 0.98 0.98
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