Summary of Important Points from Lennar Conference Call

Overview of Q2 2013 Result:

• Net earnings were $0.61 per diluted share
• EPS landed at $0.43 versus $0.15 last year same quarter
• Revenues increased 58 percent from home sales; primarily driven by deliveries and increase in ASP
• Mortgage pre-tax income increased to $26.1 million from $17.2 million
• Mortgage originations increased 45 percent to $1.4 billion; helped by increase in number of refinance transactions
• Backlog dollar value increased 76 percent - highest level in five years
• Gross margins improved to 24.1 percent, a 160 basis points increase year over year
• Operating margins increased 410 basis points to 13.3 percent
• Operating earnings of $29 million compared to $18 million last year
• Average home selling price increased 13 percent to $282,500
• 93 new communities opened and 83 communities closed
• Balance sheet liquidity landed at $728 million in cash with no outstanding borrowings

Guidance for 2013

• Expect backlog conversion ratio to be in the range of 75 percent and 80 percent for the next quarter
• Further increase in gross margin to approximately 24.25 percent
• Apartment division commenced construction on five apartment communities across nation, with 1,500 apartments and $225 million in development
• Number of refinanced transactions expect to slow down

Lennar LEN opened on Tuesday at $36.59.