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 AUGUST 31, 1994
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 end of current fiscal quarter:
Common 25,772,565
Class B Common 9,986,631
Part I. Financial Information
Item 1. Financial Statements
LENNAR CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Earnings
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
------------------- ------------------
August 31, August 31,
1994 1993 1994 1993
- ---------------------------------------------------------------------------------------------------
REVENUES:
Real estate operations:
Sales of homes $142,009 128,974 451,919 314,839
Other sales and revenues 42,963 19,377 98,626 56,762
Financial services operations 13,022 15,329 42,683 43,585
Limited-purpose finance subsidiaries 2,260 3,441 7,362 11,350
-------- ------- ------- -------
Total revenues 200,254 167,121 600,590 426,536
-------- ------- ------- -------
COSTS AND EXPENSES:
Real estate operations:
Cost of homes sold 126,365 113,274 401,246 279,306
Cost of other sales and revenues 23,682 12,217 50,350 33,347
General and administrative expenses 7,822 6,503 24,177 19,329
Financial services operations 9,969 12,284 33,515 32,841
Limited-purpose finance subsidiaries 2,161 3,471 7,320 11,353
-------- ------- ------- -------
Total costs and expenses 169,999 147,749 516,608 376,176
-------- ------- ------- -------
EARNINGS BEFORE INCOME TAXES AND CUMULATIVE
EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES 30,255 19,372 83,982 50,360
INCOME TAXES 11,799 7,361 32,753 18,672
-------- ------- ------- -------
EARNINGS BEFORE CUMULATIVE EFFECT OF CHANGES
IN ACCOUNTING PRINCIPLES 18,456 12,011 51,229 31,688
CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING
PRINCIPLES FOR:
Income taxes - - 4,745 -
Purchased mortgage servicing rights - - (3,784) -
-------- ------- ------- -------
NET EARNINGS $ 18,456 12,011 52,190 31,688
======== ======= ======= =======
AVERAGE SHARES OUTSTANDING 36,056 36,068 36,108 34,255
======== ======= ======= =======
NET EARNINGS PER SHARE:
BEFORE CUMULATIVE EFFECT OF CHANGES IN
ACCOUNTING PRINCIPLES $ 0.51 0.33 1.42 0.93
CUMULATIVE EFFECT OF CHANGES IN
ACCOUNTING PRINCIPLES - - 0.03 -
-------- ------- ------- -------
NET EARNINGS PER SHARE $ 0.51 0.33 1.45 0.93
======== ======= ======= =======
CASH DIVIDENDS PER COMMON SHARE $ 0.025 0.02 0.07 0.06
======== ======= ======= =======
CASH DIVIDENDS PER CLASS B COMMON SHARE $ 0.023 0.017 0.062 0.05
======== ======= ======= =======
See accompanying notes to consolidated condensed financial statements.
1
LENNAR CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Unaudited)
(In thousands)
August 31, November 30,
ASSETS 1994 1993
- -------------------------------------------------------------------------------------------------
REAL ESTATE AND FINANCIAL SERVICES:
Real estate assets:
Cash $ 10,158 10,606
Receivables, net 19,508 53,136
Inventories:
Construction in progress and model homes 186,015 175,085
Land held for development 313,365 269,449
---------- ---------
Total inventories 499,380 444,534
Land held for investment 74,174 61,697
Operating properties and equipment, net 149,789 156,174
Investments in and advances to partnerships and joint ventures 61,188 39,410
Other assets 32,808 17,699
Financial services assets 234,012 284,391
---------- ---------
Total assets - real estate and financial services 1,081,017 1,067,647
---------- ---------
LIMITED-PURPOSE FINANCE SUBSIDIARIES:
Collateral for bonds and notes payable 93,431 127,075
Other 677 768
---------- ---------
Total assets - limited-purpose finance subsidiaries 94,108 127,843
---------- ---------
$1,175,125 1,195,490
========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
- -------------------------------------------------------------------------------------------------
REAL ESTATE AND FINANCIAL SERVICES:
Real estate liabilities:
Accounts payable and accrued liabilities $ 88,444 79,680
Customer deposits 17,959 16,796
Income taxes:
Currently payable 691 8,247
Deferred 58,000 59,638
Mortgage notes and other debts payable 294,605 242,193
Financial services liabilities 110,002 199,737
---------- ---------
Total liabilities - real estate and financial services 569,701 606,291
---------- ---------
LIMITED-PURPOSE FINANCE SUBSIDIARIES:
Bonds and notes payable 87,371 121,361
Other 95 365
---------- ---------
Total liabilities - limited-purpose finance subsidiaries 87,466 121,726
---------- ---------
STOCKHOLDERS' EQUITY:
Common stock 2,577 1,715
Class B common stock 999 666
Additional paid-in capital 169,543 170,023
Retained earnings 344,839 295,069
---------- ---------
Total stockholders' equity 517,958 467,473
---------- ---------
$1,175,125 1,195,490
========== =========
See accompanying notes to consolidated condensed financial statements.
2
LENNAR CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows
(Unaudited)
(In thousands)
Nine Months Ended
----------------------
August 31, August 31,
1994 1993
- ------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 52,190 31,688
Adjustments to reconcile net earnings to net cash
provided by (used in) operating activities:
Depreciation and amortization 6,859 7,528
Gain on sales of other real estate (9,630) (437)
Equity in earnings of partnerships and joint ventures (17,225) (4,296)
Decrease in deferred income taxes (2,120) (855)
Cumulative effect of changes in accounting principles (961) -
Changes in assets and liabilities, net of effects from accounting changes:
Decrease (increase) in receivables 21,343 (3,926)
Increase in inventories (59,433) (94,287)
Decrease (increase) in financial services' loans held for sale or disposition 117,699 (18,494)
Increase (decrease) in accounts payable and accrued liabilities (29,474) 6,442
Increase in customer deposits 1,163 10,556
Decrease in income taxes currently payable (3,836) (3,198)
--------- -------
Net cash provided by (used in) operating activities 76,575 (69,279)
--------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Operating properties and equipment:
Additions (9,628) (7,279)
Sales 20,007 -
Increase in investments in and advances to partnerships
and joint ventures (1,675) (23,676)
Purchase of commercial mortgage-backed securities (29,121) -
Purchase of interests in joint ventures, net of cash acquired - (4,782)
Other investing activities, net (4,585) (6,380)
--------- -------
Net cash used in investing activities (25,002) (42,117)
--------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings under revolving credit agreement 8,700 56,200
Net borrowings (repayments) under financial services lines of credit (104,534) 3,324
Mortgage notes and other debts payable:
Proceeds from borrowings 60,371 14,005
Principal payments (16,660) (53,983)
Limited-purpose finance subsidiaries:
Principal reduction of mortgage loans and other receivables 35,319 41,699
Principal reduction of bonds and notes payable (33,513) (39,409)
Common stock:
Issuance 716 98,214
Dividends (2,420) (1,938)
--------- -------
Net cash provided by (used in) financing activities (52,021) 118,112
--------- -------
Net increase (decrease) in cash (448) 6,716
Cash at beginning of period 10,606 4,913
--------- -------
Cash at end of period $ 10,158 11,629
========= =======
Supplemental disclosures of cash flow information:
Cash paid for interest, net of amounts capitalized $ 8,804 14,070
Cash paid for income taxes $ 37,798 21,569
See accompanying notes to consolidated condensed financial statements.
3
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
and joint ventures 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,
1993 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) LINES OF BUSINESS
The Company operates principally in two lines of business: (1)
real estate, which includes the activities of the parent company (Lennar
Corporation), the Homebuilding Division and the Investment Division; and
(2) financial services, which includes certain activities of Lennar
Financial Services, Inc. ("LFS"), but excludes the limited-purpose finance
subsidiaries.
The Homebuilding Division constructs and sells single-family
(attached and detached) and multi-family homes. 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.
Financial services activities are conducted primarily through LFS
and the following six subsidiaries: Universal American Mortgage Company,
AmeriStar Financial Services, Inc., Universal Title Insurors, Inc.,
TitleAmerica Insurance Corporation, Lennar Funding Corporation and Loan
Funding, 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.
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 for lines of business purposes
and, as such, are reported separately.
(3) STOCK SPLIT
All references in the consolidated condensed financial statements
and notes to the number of shares outstanding and per share amounts have
been restated to reflect a three-for-two stock split effective April 20,
1994.
(4) NET EARNINGS PER SHARE
Net earnings per share is calculated by dividing net earnings by
the weighted average number of total common shares and Class B common
shares outstanding and common equivalent shares outstanding during the
period.
4
(5) RESTRICTED CASH
Cash includes restricted deposits of $3.0 million and $4.2
million as of August 31, 1994 and November 30, 1993, respectively. These
balances are comprised primarily of escrow deposits held related to
condominium purchases 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:
August 31, November 30,
1994 1993
- -----------------------------------------------------------------------------------------------
Assets:
Loans held for sale or disposition, net ..................... $ 125,637 243,095
Loans held for investment ................................... 39,236 15,746
Commercial mortgage-backed securities ....................... 46,459 -
Servicing acquisition costs ................................. 4,426 12,249
Cash and receivables......................................... 13,732 9,949
Other ....................................................... 4,522 3,352
------------ ----------
$ 234,012 284,391
============ ==========
Liabilities:
Notes and other debts payable ............................... $ 97,873 167,561
Other ....................................................... 12,129 32,176
------------ ----------
$ 110,002 199,737
============ ==========
(7) 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. Excluding the
cumulative effect, this change increased net earnings in the third quarter
and first nine months of 1994 by $0.3 million and $1.0 million,
respectively.
(8) SUMMARY OF NONCASH INVESTING AND FINANCING ACTIVITIES
During the third quarter of 1994, the Company's financial services
operations acquired commercial mortgage-backed securities for $46.5
million. Of this amount, $11.6 million was paid in cash, and the balance of
$34.9 was financed by the sellers.
(9) 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 RESULTS OF OPERATIONS
AND FINANCIAL CONDITION
(1) Material changes in results of operations.
Revenues in the three months and nine months ended August 31,
1994 were $200.3 million and $600.6 million, respectively, including sales
of homes of $142.0 million and $451.9 million, respectively, compared with
revenues of $167.1 million and $426.5 million, respectively, and sales of
homes of $129.0 million and $314.8 million, respectively, in the same
periods of fiscal 1993.
The increased homebuilding revenues in the third quarter of 1994 resulted
from an increase in the average price of homes delivered to $125,600 in the
third quarter of 1994, from $109,700 in the third quarter of 1993. This
increase was partially offset by a decrease in the number of deliveries
during the third quarter of 1994 to 1,131 homes from 1,176 homes in the
same period of 1993. The increased revenues in the first nine months of
1994 were attributable to both an increase in the number of deliveries and
in the average price of homes delivered. In the first nine months of 1994
3,605 homes were delivered with an average price of $125,400, this compares
to 2,974 deliveries with an average price of $106,200, in the corresponding
period of 1993. The higher average sales prices were due to a greater
number of sales of higher-priced homes, as well as price increases for
existing products.
Other sales and revenues increased to $43.0 million and $98.6 million,
respectively, in the third quarter and first nine months of 1994, compared
to $19.4 million and $56.8 million, respectively, in the same periods of
1993. The following table outlines the sources of other sales and revenues
for the three-month and nine-month periods ending August 31, 1994 and 1993:
============================================================================================================
Three Months Ended Nine Months Ended
August 31, August 31,
(In thousands) 1994 1993 1994 1993
- ------------------------------------------------------------------------------------------------------------
Rental Income $ 8,685 8,017 27,039 22,511
Equity in earnings of partnerships 5,802 1,143 17,225 4,296
Management fees 3,141 1,987 10,144 4,329
Sales of other real estate 21,125 192 28,983 1,345
Other 4,210 8,038 15,235 24,281
- ------------------------------------------------------------------------------------------------------------
Total $42,963 19,377 98,626 56,762
============================================================================================================
The increase in the equity in earnings of partnerships and management fees
resulted from both the addition of the Company's partnership with
Westinghouse Electric Corporation and an affiliate of Lehman Brothers (LW
Real Estate Investments L.P.) during the third quarter of 1993, and
increased earnings from the Company's partnerships with The Morgan Stanley
Real Estate Fund L.P. The increase in sales of other real estate was
primarily attributable to the sale of an operating property during the
third quarter of 1994. The decrease in other revenues in 1994 is primarily
attributable to a decrease in revenues from the repair or rebuilding of
homes which were damaged by Hurricane Andrew. In the three-month and
nine-month periods of 1993 these revenues were $4.2 million and $10.5
million, respectively. These activities were substantially completed during
1993 and revenues from these activities during the 1994 periods were not
material.
Gross profits from the sales of homes in the third quarter and first nine
months of 1994 were $15.6 million ($13,800 per home) and $50.7 million
($14,100 per home), respectively, compared to $15.7 million ($13,400 per
home) and $35.5 million ($12,000 per home), respectively, in the same
periods of fiscal 1993. The increase in the nine-month results was
primarily attributable to an increase in the number of homes delivered,
higher average sales prices and the absorption of construction and selling
overhead by a higher number of home deliveries. Gross profit percentages
from the sales of homes were 11.0% and 11.2%, respectively, in the third
quarter and first nine
6
months of 1994, compared to 12.2% and 11.3%, respectively, in the 1993
periods. The decreases in gross profit percentages were attributable to
higher construction costs due to additional building code requirements in
several counties throughout Florida, as well as increased competition in
many of the Company's markets.
At August 31, 1994 the Company had approximately $287 million (2,081 homes)
of sales contracts in backlog, as compared to $336 million (2,747 homes) at
August 31, 1993. The decrease in backlog was the result of a higher number
of deliveries in 1994, as well as a lower number of new orders. The
decrease in the dollar value of backlog was partially offset by an increase
in the average sales price of homes in backlog to $137,900 from $122,300.
Gross profits from other sales and revenues increased to $19.3 million and
$48.3 million, respectively, for the third quarter and first nine months of
1994 from $7.2 million and $23.4 million, respectively, in the same periods
of 1993. These increases were primarily attributable to the increased
earnings and management fees provided by the Company's Investment Division
partnerships and the sale of an operating property in the third quarter of
1994 which contributed a gross profit of $8.5 million.
General and administrative expenses were $7.8 million and $24.2 million,
respectively, in the three-month and nine-month periods ended August 31,
1994, compared to $6.5 million and $19.3 million, respectively, in the same
periods of fiscal 1993. The increase was primarily attributable to
increases in personnel and other costs resulting from the expansion of the
Company's operations. However, as a percentage of real estate revenues,
these expenses decreased in the three months and nine months ended August
31, 1994, to 4.2% and 4.4%, respectively, compared to 4.4% and 5.2%,
respectively, in the corresponding periods of 1993.
Earnings before income taxes from financial services operations were $3.1
million and $9.2 million, respectively, for the three months and nine
months ended August 31, 1994, compared to $3.0 million and $10.7 million,
respectively, for the same period one year ago. The higher earnings in the
three-month period and the lower earnings in the nine-month period were
partially attributable to varying gains on bulk sales of mortgage loan
servicing rights. In the third quarter and first nine months of 1994, these
gains totaled $1.4 million and $2.2 million, respectively, compared to
gains of $1.0 million and $3.1 million, respectively, in the comparable
periods of 1993. Excluding the effect of these transactions, 1994 earnings
were lower in both the three-month and nine-month periods due primarily to
a decline in mortgage loan originations and a reduction in servicing
revenues. The Company has reduced overhead in production and support areas
in response to the lower origination volume. Partially offsetting these
decreases was a reduction of amortization expense for purchased mortgage
servicing rights. This amortization decreased as a result of the change in
accounting for purchased mortgage servicing rights during the first quarter
of 1994.
The provision for income taxes was 39.0% of pre-tax income for the third
quarter and the first nine months of 1994. This compares to a provision of
38.0% for the third quarter of 1993 and 37.1% for the first nine months of
1993. The higher 1994 tax rate was due primarily to the Company's adoption
of the Statement of Financial Accounting Standards No. 109, "Accounting for
Income Taxes", which required the Company to adjust the assets and
liabilities for prior business combinations from net-of-tax to pre-tax
amounts.
(2) Material changes in financial condition.
During the nine months ended August 31, 1994, $76.6 million of
cash was provided by the Company's operations, compared to $69.3 million of
cash used by operations during the corresponding period of the prior year.
In addition to higher earnings, cash flow from operations during the 1994
period increased primarily as a result of cash generated from a $117.7
million decrease in loans held for sale or disposition by one of the
Company's mortgage banking
7
subsidiaries, Universal American Mortgage Company, ("UAMC"). This
compares to $18.5 million used in the 1993 period to increase the balance
of such loans. During 1994, $21.3 million of cash was provided by a
decrease in receivables, which compares to a $3.9 million use of cash to
increase receivables during the same period of the prior year. The
significant decrease in receivables was primarily related to the collection
of an $11.3 million note receivable during the second quarter of 1994.
Additionally, the Company used $59.4 million during 1994 to increase
inventories through land purchases, land development and construction. This
compares to $94.3 million used in the 1993 period to increase inventories.
Partially offsetting the increases in cash flow during the 1994 period was
cash used to decrease accounts payable and accrued liabilities from both
real estate and mortgage banking activities of $29.5 million (net of
effects of accounting changes), this compares to a $6.4 million increase in
cash from accounts payable and accrued liabilities in the 1993 period.
Cash used in investing activities decreased to $25.0 million in the first
nine months of 1994, compared to $42.1 million in the first nine months of
1993. This decrease was partially the result of a lower increase in
investments in and advances to partnerships and joint ventures. In 1994,
$1.7 million of cash was used to increase investments in partnerships,
compared to $23.7 million of cash used in 1993. Cash used for these
activities in 1993 was primarily attributable to the Company's $28.8
million investment in LW Real Estate Investments L.P. Cash used in the 1994
period is primarily attributable to investments totaling $12.0 million in
two new investment division partnerships, partially offset by cash
distributions from the Company's existing partnerships. Also contributing
to the decrease in cash used for investing activities was the Company's
sale of an operating property in the third quarter of 1994 for $20.0
million. Partially offsetting the decreases in cash used for investing
activities, was $29.1 million used by both the investment and financial
services divisions to purchase commercial mortgage-backed securities. The
total amount of commercial mortgage-backed securities purchased during the
first nine months of 1994 was $64.0 million of which $34.9 million was
financed by the sellers of some of the pools of securities purchased.
The Company's ratio of real estate debt to total equity increased to 56.9%
at August 31, 1994, compared with 51.8% at November 30, 1993. The increase
in this ratio was due primarily to borrowings made to finance the increase
in inventories and the investing activities discussed above.
On July 29, 1994, the Company extended and increased the amount of its
revolving credit agreement. The term of the agreement is three years. The
commitment was increased to $250 million and includes eleven banks. On
every anniversary date of the agreement each bank has the option to
participate in a one year extension.
As of August 31, 1994, UAMC was a party to warehouse loan agreements under
which it could borrow up to $110 million. These agreements were decreased
from $200 million at November 30, 1993 due to reduced borrowing needs.
Borrowings under these agreements, which are secured by certain mortgage
loans held for sale and servicing rights to certain loans serviced by UAMC,
were $63.0 million at August 31, 1994 and $167.6 million at November 30,
1993.
At August 31, 1994 and November 30, 1993, UAMC was servicing a portfolio of
loans with an unpaid principal balance of $3.3 billion and $3.4 billion,
respectively. These loans were originated through the financial services
division's mortgage loan origination activities or acquired from
unaffiliated third parties. The balance of this portfolio as of August 31,
1993 was $3.4 billion.
8
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- 5. Not applicable
Item 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits: None
(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.
9
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: OCTOBER 12, 1994 ALLAN J. PEKOR
----------------------------
Allan J. Pekor
Financial Vice President
Chief Financial Officer
Date: OCTOBER 12, 1994 JAMES T. TIMMONS
-----------------------------
James T. Timmons
Controller
Chief Accounting Officer
10