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EXHIBIT 99.2
 Financial Statements




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Contents
 Report of Independent Certified Public Accountants
    
    
    1Financial StatementsStatements of Financial Condition
    
    
    2Statements of Income
    
    
    3Statements of Changes in Members Equity
    
    
    4Statements of Cash Flows
    
    
    5Notes to Financial Statements
    
    
    6




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West Palm Beach, Florida
    /s/ Ernst & Young LLPMarch 13, 20071




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December 312006
    
    
    2005AssetsCash and cash equivalents
    
    $
    22,513,223
    
    
    $
    15,067,665Inventory:Deposits
    
    
    6,544,655
    
    
    
    7,366,835Homesites and land under development
    
    
    105,967,662
    
    
    
    72,321,555Residences completed and under construction
    
    
    134,042,208
    
    
    
    195,879,656246,554,525
    
    
    
    275,568,046Property and equipment, net
    
    
    1,206,214
    
    
    
    2,055,073Other assets
    
    
    1,640,394
    
    
    
    4,432,166Total assets
    
    $
    271,914,356
    
    
    $
    297,122,950Liabilities and members equityLiabilities:Accounts payable
    
    $
    9,677,386
    
    
    $
    8,729,848Accrued liabilities
    
    
    11,667,159
    
    
    
    9,929,361Customer deposits
    
    
    5,060,493
    
    
    
    13,776,350Advances from developer, net
    
    
    18,450,191
    
    
    
    1,026,945Bank borrowings
    
    
    160,285,052
    
    
    
    184,168,045Note payable to developer
    
    
    995,375
    
    
    
    12,333,070Total liabilities
    
    
    206,135,656
    
    
    
    229,963,619Members equity
    
    
    65,778,700
    
    
    
    67,159,331Total liabilities and members equity
    
    $
    271,914,356
    
    
    $
    297,122,950
 See accompanying notes.
 2




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Year Ended December 312006
    
    
    2005Revenues:Home sales
    
    $
    511,125,538
    
    
    $
    330,928,814Cost of sales:Home sales
    
    
    385,907,448
    
    
    
    260,342,160Gross profit
    
    
    125,218,090
    
    
    
    70,586,654Selling, general and administrative expenses
    
    
    32,724,239
    
    
    
    17,715,197Depreciation expense
    
    
    1,413,363
    
    
    
    1,044,075Income from operations
    
    
    91,080,488
    
    
    
    51,827,382Other (income) expense:Other income
    
    
    (501,212
    )
    
    
    (93,905
    )Management fee expense
    
    
    29,646,090
    
    
    
    19,948,798Net income
    
    $
    61,935,610
    
    
    $
    31,972,489
 See accompanying notes.
 3




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TOUSA
    
    
    Suntous
    
    
    TotalMembers equity at December 31, 2004
    
    $
    27,773,003
    
    
    $
    3,129,633
    
    
    $
    30,902,636Contributions
    
    
    8,068,779
    
    
    
    1,888,960
    
    
    
    9,957,739Distributions
    
    
    (5,673,533
    )
    
    
    
    
    
    
    (5,673,533
    )Net income
    
    
    27,176,616
    
    
    
    4,795,873
    
    
    
    31,972,489Members equity at December 31, 2005
    
    
    57,344,865
    
    
    
    9,814,466
    
    
    
    67,159,331Contributions
    
    
    
    
    
    
    290,881
    
    
    
    290,881Distributions
    
    
    (53,380,491
    )
    
    
    (10,226,631
    )
    
    
    (63,607,122
    )Net income
    
    
    52,645,269
    
    
    
    9,290,341
    
    
    
    61,935,610Members equity at December 31, 2006
    
    $
    56,609,643
    
    
    $
    9,169,057
    
    
    $
    65,778,700
 See accompanying notes.
 4




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Year Ended December 312006
    
    
    2005Operating activitiesNet income
    
    $
    61,935,610
    
    
    $
    31,972,489Adjustments to reconcile net income to net cash
provided by (used in) operating activities:Depreciation
    
    
    1,413,363
    
    
    
    1,044,075Loss on impairment of inventory
    
    
    6,537,972
    
    
    
    Changes in operating assets and liabilities:Inventory
    
    
    22,475,549
    
    
    
    (168,427,449
    )Other assets
    
    
    2,791,772
    
    
    
    2,219,447Accounts payable
    
    
    947,538
    
    
    
    8,722,339Accrued liabilities
    
    
    1,737,798
    
    
    
    9,437,773Customer deposits
    
    
    (8,715,857
    )
    
    
    11,071,150Net cash provided by (used in) operating activities
    
    
    89,123,745
    
    
    
    (103,960,176
    )Investing activityAdditions to model furnishings and fixtures, net
    
    
    (564,504
    )
    
    
    (1,820,866
    )Net cash used in investing activity
    
    
    (564,504
    )
    
    
    (1,820,866
    )Financing activitiesNet (payments to) proceeds from bank borrowings
    
    
    (23,882,993
    )
    
    
    102,335,224Net (payments to) proceeds from note payable
from developer
    
    
    (11,337,695
    )
    
    
    12,333,070Advances from (repayments to) developer, net
    
    
    17,423,246
    
    
    
    (186,257
    )Contributions
    
    
    290,881
    
    
    
    9,957,739Distributions
    
    
    (63,607,122
    )
    
    
    (5,673,533
    )Net cash (used in) provided by financing activities
    
    
    (81,113,683
    )
    
    
    118,766,243Net increase in cash and cash equivalents
    
    
    7,445,558
    
    
    
    12,985,201Cash and cash equivalents at beginning of year
    
    
    15,067,665
    
    
    
    2,082,464Cash and cash equivalents at end of year
    
    $
    22,513,223
    
    
    $
    15,067,665
 See accompanying notes.
 5




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1. Organization and Nature of Business
   2. Summary of Significant Accounting Policies
 Basis of Presentation
      6




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2. Summary of Significant Accounting Policies (continued)
 Cash and Cash Equivalents
  Inventory
   Model furnishings and fixtures
   7




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2. Summary of Significant Accounting Policies (continued)
 Revenue Recognition
  Warranty Costs
  Advertising Costs
  Fair Value of Financial Instruments
 Disclosures about Fair Value of Financial Instruments
 Concentration of Credit Risk
  8




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2. Summary of Significant Accounting Policies (continued)
 Recent Accounting Pronouncements
 Fair Value Measurements
 The Fair Value Option for Financial Assets and
Financial Liabilities
 3. Inventory
  December 312006
    
    
    2005Interest capitalized, beginning of year
    
    $
    12,078,631
    
    
    $
    212,933Interest incurred
    
    
    17,502,034
    
    
    
    27,106,849Less interest included in cost of sales
    
    
    14,791,056
    
    
    
    15,241,151Interest capitalized, end of year
    
    $
    14,789,609
    
    
    $
    12,078,631
  9




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3. Inventory (continued)
   4. Accrued Liabilities
  December 312006
    
    
    2005Taxes, including Arizona privilege tax and
real estate
    
    $
    2,591,011
    
    
    $
    2,846,389Warranty costs
    
    
    1,859,435
    
    
    
    1,788,171Completion reserves
    
    
    3,408,881
    
    
    
    3,609,027Accrued expenses
    
    
    3,807,832
    
    
    
    1,685,774$
    11,667,159
    
    
    $
    9,929,361
 5. Bank Borrowings
  10




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5. Bank Borrowings (continued)
  2006
    
    
    2005Senior revolving credit facility, $250
million revolving line of credit, due
2007 (a)
    
    $
    160,285,052
    
    
    $
    160,076,636Mezzanine Loan due 2007, interest at 12%
    
    
    
    
    
    
    24,091,409$
    160,285,052
    
    
    $
    184,168,045
 
 (a)
    
    At December 31, 2006, under the Revolving Facility, the Company had $160.3 million
outstanding under LIBOR loans at a rate of LIBOR plus 2.5% (7.8% all-in).  6. Income Tax Matters
  11




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7. Related Party Transactions
 Structuring Fee
  Operating Management Fee
  Construction Management Services Fee
  12




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7. Related Party Transactions (continued)


Finance Member Fee




Advances from / Repayments to Developer




Note Payable to Developer




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8.
Subsequent Events
   14