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Lennar Q2 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 12:45 PM ET July 01 2009

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The homebuilder quarterly revenues declined 21% to $891.9 million partly on fewer sales of completed homes. Net quarterly loss widened 3.5% to $125.2 million. Earnings per share were 76 cents, flat with a year-ago quarter. New home orders rose 63% between the first and second quarters.


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So when you think about the specs that you have left you guys have cut them in half. You think about a potential land source cash infusion, you think about keeping your specs tightly reined in, it doesn’t sound like you guys are looking for another 50% reduction here in the next couple of months or couple of quarters. What do you guys think about cash flow in the second half of the year? Is it positive? Is it negative? Is it close? Is it big? Just sort of to get some idea on what you guys can do for cash flow in the second half of the year.

Stuart A. Miller

Well, as I noted at each division level we are highly focused on getting to profitability, breakeven and positive cash flow. And as I have gone through I have seen a lot of evidence that we are getting in that direction. Of course, cash flow is highly dependent on where the market goes and as I have said I am making no predictions about where the market is going. I see some positive influences. I see a lot of headwinds and we are going to get a lot of rocky data points.

So predicting cash flow is tantamount to giving guidance as to where delivery is and other things are going to be over the next quarter and we are going to have to let the market to kind of dictate that trail. With that said, we are certainly managing our business to keep cash flow as positive as it can be possibly be given the amount of business we have got.

Clearly, an investment in land source will have a negative cash flow impact, a positive investment impact over time but a negative short-term cash flow impact.

Joshua Pollard – Goldman Sachs

Thank you, Stuart and Bruce.

Scott Shipley

And why don’t we take just one more question.

Operator

Our next question is coming from Eric Landry of Morningstar. Your line is open.

Eric Landry – Morningstar

Thank you very much for taking my call. I noticed you are putting order values on the releases now from the beginning of the year, I believe. Is it right, Bruce?

Bruce E. Gross

Yes, the backlog value dollars are included at the end of the release.

Eric Landry – Morningstar

Order value dollars. Do you have fourth quarter?

Bruce E. Gross

Yes, order dollar values are also in the release.

Eric Landry – Morningstar
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