1. Prepare a statement of cash flows for fiscal 2013 using the indirect method ( do not need to provide the supplemental disclosures.) 2. Using the statement of cash flows, briefly discuss the quality of earnings (use appropriate ratios or analysis to support your discussion, and discuss cash-based relative to accrual-based earnings). Also, interpret the Companys performance for fiscal 2013 using cash flows from operating, investing, and financing activities. 3. Calculate the fiscal 2013 EBITDA (earnings before interest, taxes, depreciation, and amortization). Reconcile operating cash flows to EBITDA and identify the primary drivers of the difference. Briefly discuss the importance of EBITDA and comment on whether EBITDA is a useful proxy for operating cash flows .

Consolidated Statements of Operations (dollars and shares in thousands, except per share amounts) For the year ended June 30, 2013 2012 2011 Earned revenue 880,605 674,620 562,183 Residential properties Land sales 26,204 22,787 21.099 583,282 906,809 697,407 Cost of Goods Sold Residential Properties 704,904. 577,812 553,600 Land sales 39,306 60, 806 47,682 601.282 744.210 638,618 Gross Profit Residential Properties 175.701 96,808 8,583 Land sales (13,102) 38,019) 26,583 (18,000) 162,599 58,789 Operating Expenses Selling, general & administrative 92.689 95, 153 96.430 7,214 Other expenses 8,084 7,477 impairment of goodwill 101,173 103,907 102,367 Earnings (Loss) from operations 61,426 (43,578) (121,907) Other revenues and expenses, net 1.098 973 741 Earnings (Loss) before income taxes 60.330 (122,648) (44,551) Income Tax (benefit) provision 9,504 (608 (976) Earnings (Loss) from continuing operations 50,826 (43,943) (121,672) Discontinued operations Loss from discontinued operations, net of tax (21,741 50,826 Net Income (Loss) 43,943) (143,413 Basic (oss) eamings per share 2.76 (2.38) Continuing operations (6.60) Discontinued operations (1.18 Net (Loss) earnings per share 2.76 (2.38) (7.78) Diluted (oss) earnings per share (2.38) Continuing operations 2.78 (6.60) Discontinued operations (1.18) (2.38) Net (Loss) earnings per share 2.76 (7.78) 18,428 Basic weighted average shares outstanding 18,428 18,428 Diluted weighed average shares outstanding 18,428 8,428 8,428