MIAMI, April 4, 2018
/PRNewswire/ --
- Lennar completed its strategic acquisition of CalAtlantic on
February 12, 2018
- Net earnings of $136.2
million, or $0.53 per diluted
share, which includes the following:
-
- $0.31 per diluted share
related to acquisition and integration costs
- $0.27 per diluted share
related to a one-time non-cash write down of deferred tax
assets
- Excluding these items EPS would have been $1.11 per diluted share
- Deliveries of 6,765 homes – up 24%, including 819 homes from
acquired CalAtlantic communities
- New orders of 8,456 homes – up 30%; new orders dollar value
of $3.4 billion – up 38% including
1,069 homes with a dollar value of $507.9
million from acquired CalAtlantic communities
- Backlog of 17,566 homes – up 95%; backlog dollar value of
$7.7 billion – up 118% including
7,190 homes with a dollar value of $3.6
billion from acquired CalAtlantic communities
- Revenues of $3.0 billion – up
28%
- Lennar Homebuilding operating earnings of $413.7 million, compared to $71.3 million
-
- Gross margin on home sales of 19.5% (21.6% excluding backlog
write-up related to purchase accounting), compared to
21.1%
- S,G&A expenses as a % of revenues from home sales of
9.7% – improved 60 basis points
- Operating margin on home sales of 9.8% – improved 100 basis
points
- Lennar Homebuilding other income, land sales and equity in
loss from unconsolidated entities totaled $154.2 million of pretax income, primarily driven
by the sale of an 80% interest in Treasure Island Holdings
- Lennar Financial Services operating earnings of $19.7 million, compared to $20.7 million
- Rialto operating earnings (net of noncontrolling interests)
of $10.4 million, compared to
$12.0 million
- Lennar Multifamily operating earnings (loss) of ($1.2) million, compared to $19.2 million
- In March 2018, a second Lennar
Multifamily Venture was formed with an initial close of
$500 million in equity commitments
($255 million committed by
Lennar)
- Lennar Homebuilding cash and cash equivalents of
$734 million
- Lennar increased its credit facility to $2.6 billion of which $500
million was outstanding at quarter-end
- Lennar Homebuilding debt to total capital, net of cash and
cash equivalents, of 42.5%
Lennar Corporation (NYSE: LEN and LEN.B), one
of the nation's leading homebuilders, today reported results
for its first quarter ended February 28,
2018. First quarter net earnings attributable to Lennar in
2018 were $136.2 million, or
$0.53 per diluted share, compared to
first quarter net earnings attributable to Lennar in 2017 of
$38.1 million, or $0.16 per diluted share. Earnings in the first
quarter of 2018 were reduced by $104.2
million ($0.31 per diluted
share) of pretax acquisition and integration costs related to
the acquisition of CalAtlantic Group, Inc.
("CalAtlantic") and a $68.6
million ($0.27 per diluted
share) one-time non-cash write down of deferred tax assets due
to the reduction in the federal corporate income tax rate. Earnings
in the first quarter of 2017 were reduced by $140 million ($0.39
per diluted share) of pretax Lennar Homebuilding loss due to
litigation.
Stuart Miller, Chief Executive
Officer of Lennar, said, "As we report our first combined quarterly
results with the CalAtlantic strategic acquisition now completed,
we remain enthusiastic about both our current results as well as
our future projections under the Lennar platform. In the first
quarter of 2018, pro forma new
orders and deliveries were 10,910 and 9,994,
respectively, which exceeded the expectations for both
companies. The integration is progressing exactly on
target."
Mr. Miller continued, "Our first quarter results begin to
display the true power of this combination. Although these
results do not include 2 ½ months of CalAtlantic's operations, all
company metrics have performed as expected or better and we have
grown more confident in our ability to exceed our $100 million synergy target in 2018 and we are on
track to meet our $365 million
synergy target in 2019."
"We continue to remain positive on the outlook of the housing
industry in general. Although interest rates have ticked up,
unemployment remains low, the labor participation rate has been
increasing, and wages have been moving modestly higher, though we
think, even higher than the data the government
captures. Feedback from our new home consultants indicates
that our customer base feels confident in both job security and
compensation levels in spite of the political noise that
abounds."
"Against a backdrop of higher demand, the production shortage
over the past years has in fact resulted in supply shortages that
are the underpinnings of at least stability and probably continued
expansion of this housing recovery."
Mr. Miller concluded, "Strategically, we remain focused on
building our homebuilding business with efficiencies and
technologies that improve our business model. Additionally, we are
continuing to focus on a return to a pure play strategy with
greater focus on properly positioning Rialto. In that regard, we
have engaged Wells Fargo Securities and Deutsche Bank Securities to
advise us regarding strategic alternatives that may be available
with regard to our subsidiary, Rialto Capital Management."
RESULTS OF OPERATIONS
THREE MONTHS ENDED FEBRUARY 28, 2018
COMPARED TO
THREE MONTHS ENDED FEBRUARY 28,
2017
On February 12, 2018, Lennar
Corporation completed its acquisition of CalAtlantic. Prior year information includes
only stand-alone data for Lennar Corporation for the three months
ended February 28, 2017.
Lennar Homebuilding
Revenues from home sales increased 34% in the first quarter of
2018 to $2.6 billion from
$2.0 billion in the first quarter of
2017. Revenues were higher primarily due to a 24% increase in the
number of home deliveries, excluding unconsolidated entities, and
an 8% increase in the average sales price of homes delivered. New
home deliveries, excluding unconsolidated entities, increased to
6,734 homes in the first quarter of 2018 from 5,433 homes in the
first quarter of 2017. There was an increase in home deliveries in
all of the Company's Homebuilding segments and Homebuilding Other
as a result of the CalAtlantic acquisition. The average sales price
of homes delivered was $393,000 in
the first quarter of 2018, compared to $365,000 in the first quarter of 2017. Sales
incentives offered to homebuyers were $22,300 per home delivered in the first quarter
of 2018, or 5.4% as a percentage of home sales revenue, compared to
$22,700 per home delivered in the
first quarter of 2017, or 5.9% as a percentage of home sales
revenue, and $23,500 per home
delivered in the fourth quarter of 2017, or 5.7% as a percentage of
home sales revenue.
Gross margins on home sales were $516.6
million, or 19.5%, in the first quarter of 2018. Excluding
the backlog write-up of $55.0 million
related to purchase accounting adjustments on CalAtlantic homes in
backlog and homes completed that were delivered in the first
quarter of 2018, gross margins on home sales were $571.7 million or 21.6%. This compared to
gross margins on home sales of $419.2 million, or 21.1%, in
the first quarter of 2017. Gross margin percentage on home sales
increased compared to the first quarter of 2017 primarily due to an
increase in the average sales price of homes delivered and
increased volume. Losses on land sales were $1.4 million in the three months ended
February 28, 2018, compared to gross
profits of $2.0 million in the three
months ended February 28, 2017.
Selling, general and administrative expenses were $257.1 million in the first quarter of 2018,
compared to $204.0 million in the
first quarter of 2017. As a percentage of revenues from home sales,
selling, general and administrative expenses improved to 9.7% in
the first quarter of 2018, from 10.3% in the first quarter of 2017,
due to improved operating leverage as a result of an increase in
home deliveries.
Lennar Homebuilding equity in loss from unconsolidated entities
was $14.3 million in the first
quarter of 2018, compared to $11.5
million in the first quarter of 2017. In the first quarter
of 2018, Lennar Homebuilding equity in loss from unconsolidated
entities was primarily attributable to the Company's share of
valuation adjustments related to assets of Lennar Homebuilding's
unconsolidated entities and the Comany's share of
net operating losses from its unconsolidated entities. In the first
quarter of 2017, Lennar Homebuilding equity in loss from
unconsolidated entities was primarily attributable to the Company's
share of net operating losses from its unconsolidated entities,
primarily driven by general and administrative expenses, as there
were no significant land sale transactions during the first quarter
of 2017.
Lennar Homebuilding other income, net, was $169.9 million in the first quarter of 2018,
compared to $5.7 million in the first
quarter of 2017. Lennar Homebuilding other income, net, in the
first quarter of 2018 was primarily related to a gain on the sale
of an 80% interest in one of Lennar Homebuilding's strategic joint
ventures, Treasure Island Holdings.
Lennar Homebuilding loss due to litigation of $140 million in the first quarter of 2017 was
related to litigation regarding a contract the Company entered into
in 2005 to purchase a property in Maryland. As a result of the litigation, the
Company purchased the property for $114
million, which approximated the Company's estimate of fair
value for the property. In addition, the Company paid approximately
$124 million in interest and other
closing costs and has accrued for the amount it expects to pay as
reimbursement for attorney's fees.
Lennar Homebuilding interest expense was $51.2 million in the first quarter of 2018
($48.3 million was included in costs
of homes sold, $0.4 million in costs
of land sold and $2.4 million in
other income, net), compared to $52.4
million in the first quarter of 2017 ($48.7 million was included in costs of homes
sold, $2.4 million in costs of land
sold and $1.2 million in other
income, net).
Lennar Financial Services
Operating earnings for the Lennar Financial Services segment
were $19.7 million in the first
quarter of 2018, compared to $20.7
million in the first quarter of 2017. Operating earnings
were impacted by a decrease in refinance transactions.
Rialto
Operating earnings for the Rialto segment were $10.4 million in the first quarter of 2018 (which
included $9.2 million of operating
earnings and an add back of $1.2
million of net loss attributable to noncontrolling
interests). Operating earnings in the first quarter of 2017 were
$12.0 million (which included a
$0.8 million operating loss and an
add back of $12.9 million of net loss
attributable to noncontrolling interests). The decrease in
operating earnings was primarily due to a decrease in Rialto
Mortgage Finance ("RMF") securitization revenues as a result of
lower volume and a decrease in incentive income related to carried
interest distributions from the Rialto real estate
funds. These decreases to operating earnings were partially
offset by a decrease in real estate owned impairments and lower
general and administrative expenses.
Lennar Multifamily
Operating losses for the Lennar Multifamily segment were
$1.2 million in the first quarter of
2018, primarily due to general and administrative expenses
partially offset by the segment's $4.1
million share of gains as a result of the sale of one
operating property by one of Lennar Multifamily's unconsolidated
entities and management fee income. In the first quarter of 2017,
the Lennar Multifamily segment had operating earnings of
$19.2 million primarily due to the
segment's $26.0 million share of
gains as a result of the sale of two operating properties by Lennar
Multifamily's unconsolidated entities.
Corporate General and Administrative Expenses
Corporate general and administrative expenses were $67.8 million, or 2.3% as a percentage of total
revenues, in the first quarter of 2018, compared to $60.7 million, or 2.6% as a percentage of total
revenues, in the first quarter of 2017. The decrease in corporate
general and administrative expenses as a percentage of total
revenues is due to improved operating leverage as a result of an
increase in home deliveries.
Noncontrolling Interests
Net earnings (loss) attributable to noncontrolling interests
were $0.6 million and ($8.4) million in the first quarter of 2018 and
2017, respectively. Net loss attributable to noncontrolling
interests in the first quarter of 2017 was primarily attributable
to a net loss related to the FDIC's interest in the portfolio of
real estate loans that the Company acquired in partnership with the
FDIC, partially offset by net earnings related to the Lennar
Homebuilding consolidated joint ventures.
OTHER TRANSACTIONS
Merger with CalAtlantic
On February 12, 2018, the Company
completed the acquisition of CalAtlantic through a transaction in
which CalAtlantic was merged with and into a wholly-owned
subsidiary of the Company ("Merger Sub"), with Merger Sub
continuing as the surviving corporation and a subsidiary of the
Company (the "Merger"). The Merger took place pursuant to the
Agreement and Plan of Merger dated as of October 29, 2017, among CalAtlantic, the Company
and Merger Sub. CalAtlantic is a homebuilder which builds homes
across the homebuilding spectrum, from entry level to luxury, in 43
metropolitan statistical areas spanning 19 states. CalAtlantic
provides mortgage, title and escrow services. For the three months
ended February 28, 2018, our results of operations included
819 home deliveries at an average sales price of $456,000, and net new orders of 1,069
homes at an average sales price of $475,000 from acquired CalAtlantic communities.
During the three months ended February 28, 2018, the Company
recorded $104.2 million of
acquisition and integration costs related to the Merger.
A Second Lennar Multifamily Venture Formed
In March 2018, the Lennar
Multifamily segment completed the closing of a second Lennar Multifamily Venture II
LP ("Venture II") for the development, construction and
property management of class-A multifamily assets. With the first
close, Venture II will have approximately $500 million of equity commitments, including a
$255 million co-investment commitment
by us comprised of cash, undeveloped land and preacquisition costs.
It will be seeded with 6 undeveloped multifamily assets that were
previously purchased or under contract by the Lennar Multifamily
segment totaling approximately 2,200 apartments with projected
project costs of approximately
$900 million.
Debt Transactions
In February 2018, the
Company exchanged in part eight notes issued by
CalAtlantic into new notes issued by the company maturing
between 2018 and 2027 with a total principal amount of $2.8 billion.
In March 2018, holders of
$6.7 million principal amount of
CalAtlantic's 1.625% convertible senior notes due 2018 and
$266.2 million principal amount of
CalAtlantic's 0.25% convertible senior notes due 2019 either caused
the Company to purchase them for cash or converted them into a
combination of the Company's Class A and Class B common stock and
cash, resulting in the Company's issuing approximately 3,654,000
shares of Class A common stock and 72,000 shares of Class B common
stock, and paying $51.2 million in
cash to former noteholders.
Credit Facility
In February 2018, the Company
amended the credit agreement governing its unsecured revolving
credit facility (the "Credit Facility") to increase the maximum
borrowings from $2.0 billion to
$2.6 billion and extend the maturity
on $2.1 billion of the Credit
Facility from June 2022 to
April 2023. The $2.6 billion includes an accordion feature,
subject to additional commitments. As of February 28, 2018,
there was $500 million of outstanding
borrowings under the Credit Facility.
Tax Reform
In December 2017, the Tax Cuts and
Jobs Act was enacted which will have a positive impact on our
effective tax rate in 2018 and subsequent years. The tax reform
bill reduced our expected effective tax rate in 2018 from 34% to
24%, which is lower than the Company's previous guidance of
25% primarily due to tax legislation enacted during
the quarter extending the energy efficent home credit
retroactively for homes closed during 2017. However, as a
result of the reduction in our effective tax rate, during the three
months ended February 28, 2018, we were required to record a
one-time non-cash write down of our deferred tax assets of
$68.6 million. Due to this, for the
three months ended February 28, 2018, the Company's effective
tax rate was 49.3%, instead of 23.8%. This compared to 34.4% for
the three months ended February 28,
2017.
About Lennar
Lennar Corporation, founded in 1954, is one of the nation's
leading builders of quality homes for all generations. The Company
builds affordable, move-up and active adult homes primarily under
the Lennar brand name. Lennar's Financial Services segment provides
mortgage financing, title insurance and closing services for both
buyers of Lennar's homes and others. Lennar's Rialto segment is a
vertically integrated asset management platform focused on
investing throughout the commercial real estate capital structure.
Lennar's Multifamily segment is a nationwide developer of
high-quality multifamily rental properties. Previous press releases
and further information about the Company may be obtained at the
"Investor Relations" section of the Company's website,
www.lennar.com.
Note Regarding Forward-Looking Statements: Some of the
statements in this press release are "forward-looking statements,"
as that term is defined in the Private Securities Litigation Reform
Act of 1995, including statements regarding CalAtlantic integration
and the anticipated synergy benefits from the CalAtlantic
transaction, the homebuilding market and other markets in
which we participate, and our belief regarding how we are
positioned to take advantage of opportunities, or to avoid
problems, in those markets and to advance the future growth of our
businesses. You can identify forward-looking statements by the fact
that these statements do not relate strictly to historical or
current matters. Rather, forward-looking statements relate to
anticipated or expected events, activities, trends or results.
Accordingly, these forward-looking statements should be evaluated
with consideration given to the many risks and uncertainties
inherent in our business that could cause actual results and events
to differ materially from those anticipated by the forward-looking
statements. Important factors that could cause such differences
include increases in operating costs, including costs related to
real estate taxes, construction materials, labor and insurance, and
our ability to manage our cost structure, both in our Lennar
Homebuilding and Lennar Multifamily businesses; a slowdown in the
real estate markets across the nation, including a slowdown in the
market for single family homes or the multifamily rental market;
unfavorable losses in legal proceedings; decreased demand for our
homes or Lennar Multifamily rental properties, and our inability to
successfully sell our apartments; natural disasters or catastrophic
events for which our insurance may not provide adequate coverage;
our ability to successfully execute our strategies; a decline in
the value of the land and home inventories we maintain or possible
future write-downs of the carrying value of our real estate assets;
our inability to realize the anticipated synergy benefits from the
CalAtlantic transaction; the inability of the Rialto segment to
profit from the investments it makes; the inability of Rialto to
sell mortgages it originates into securitizations on favorable
terms; reduced availability of mortgage financing or increased
interest rates; conditions in the capital, credit and financial
markets; changes in laws, regulations or the regulatory environment
affecting our business, and the risks described in our filings with
the Securities and Exchange Commission, including our Form 10-K for
the fiscal year ended November 30,
2017. We undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
A conference call to discuss the Company's first quarter
earnings will be held at 11:00 a.m. Eastern
Time on Wednesday, April 4, 2018. The call will be
broadcast live on the Internet and can be accessed through the
Company's website at www.lennar.com. If you are unable to
participate in the conference call, the call will be archived at
www.lennar.com for 90 days. A replay of the conference call will
also be available later that day by calling 402-220-5359 and
entering 5723593 as the confirmation number.
LENNAR CORPORATION
AND SUBSIDIARIES
Selected Revenues and
Operating Information
(In thousands, except
per share amounts)
(unaudited)
|
|
|
|
Three Months
Ended
|
|
February
28,
|
|
2018
|
|
2017
|
Revenues:
|
|
|
|
Lennar
Homebuilding
|
$
|
2,662,093
|
|
2,018,694
|
Lennar Financial
Services
|
171,140
|
|
148,043
|
Rialto
|
54,302
|
|
82,006
|
Lennar
Multifamily
|
93,256
|
|
88,685
|
Total
revenues
|
$
|
2,980,791
|
|
2,337,428
|
|
|
|
|
|
|
Lennar Homebuilding
operating earnings
|
$
|
413,727
|
|
71,338
|
Lennar Financial
Services operating earnings
|
19,695
|
|
20,664
|
Rialto operating
earnings (loss)
|
9,212
|
|
(843)
|
Lennar Multifamily
operating earnings (loss)
|
(1,201)
|
|
19,183
|
Acquisition and
integration costs
|
(104,195)
|
|
—
|
Corporate general and
administrative expenses
|
(67,810)
|
|
(60,699)
|
Earnings before
income taxes
|
269,428
|
|
49,643
|
Provision for income
taxes (1)
|
(132,611)
|
|
(19,969)
|
Net earnings
(including net earnings (loss) attributable to noncontrolling
interests)
|
136,817
|
|
29,674
|
Less: Net earnings
(loss) attributable to noncontrolling interests
|
602
|
|
(8,406)
|
Net earnings
attributable to Lennar
|
$
|
136,215
|
|
38,080
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
Basic
(2)
|
253,665
|
|
236,852
|
Diluted
(2)
|
254,448
|
|
236,854
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
Basic
(2)
|
$
|
0.53
|
|
0.16
|
Diluted
(2)
|
$
|
0.53
|
|
0.16
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
|
Interest incurred
(3)
|
$
|
84,214
|
|
69,691
|
|
|
|
|
EBIT
(4):
|
|
|
|
Net earnings
attributable to Lennar
|
$
|
136,215
|
|
38,080
|
Provision for income
taxes
|
132,611
|
|
19,969
|
Interest
expense
|
51,224
|
|
52,361
|
EBIT
|
$
|
320,050
|
|
110,410
|
|
|
(1)
|
Provision for income
taxes includes a one-time non-cash write-down of deferred tax
assets of $68.6 million as a result of the Tax
Cuts and Jobs Act enacted in December 2017.
|
(2)
|
Basic and diluted
average shares outstanding and earnings per share calculations for
the three months ended February 28, 2017
have been adjusted to reflect 4.7 million Class B shares
distributed as a part of the stock dividend on November 27,
2017.
|
(3)
|
Amount represents
interest incurred related to Lennar Homebuilding debt.
|
(4)
|
EBIT is a non-GAAP
financial measure defined as earnings before interest and taxes.
This financial measure has been presented
because the Company finds it important and useful in evaluating its
performance and believes that it helps readers of the Company's
financial statements compare its operations with those of its
competitors. Although management finds EBIT to be an important
measure in conducting and evaluating the Company's operations, this
measure has limitations as an analytical tool as it is not
reflective of the actual profitability generated by the Company
during the period. Management compensates for the limitations
of
using EBIT by using this non-GAAP measure only to supplement the
Company's GAAP results. Due to the limitations discussed, EBIT
should not be viewed in isolation, as it is not a substitute for
GAAP measures.
|
LENNAR CORPORATION
AND SUBSIDIARIES
Segment
Information
(In
thousands)
(unaudited)
|
|
|
|
Three Months
Ended
|
|
February
28,
|
|
2018
|
|
2017
|
Lennar
Homebuilding revenues:
|
|
|
|
Sales of
homes
|
$
|
2,649,140
|
|
1,983,788
|
Sales of
land
|
12,953
|
|
34,906
|
Total
revenues
|
2,662,093
|
|
2,018,694
|
|
|
|
|
|
|
Lennar
Homebuilding costs and expenses:
|
|
|
|
Costs of homes
sold
|
2,132,512
|
|
1,564,623
|
Costs of land
sold
|
14,383
|
|
32,924
|
Selling, general and
administrative
|
257,112
|
|
204,014
|
Total costs and
expenses
|
2,404,007
|
|
1,801,561
|
Lennar
Homebuilding operating margins
|
258,086
|
|
217,133
|
Lennar Homebuilding
equity in loss from unconsolidated entities
|
(14,287)
|
|
(11,534)
|
Lennar Homebuilding
other income, net
|
169,928
|
|
5,739
|
Lennar Homebuilding
loss due to litigation
|
—
|
|
(140,000)
|
Lennar
Homebuilding operating earnings
|
$
|
413,727
|
|
|
71,338
|
|
|
|
|
Lennar Financial
Services revenues
|
$
|
171,140
|
|
148,043
|
Lennar Financial
Services costs and expenses
|
151,445
|
|
127,379
|
Lennar Financial
Services operating earnings
|
$
|
19,695
|
|
20,664
|
|
|
|
|
Rialto
revenues
|
$
|
54,302
|
|
82,006
|
Rialto costs and
expenses
|
45,413
|
|
66,913
|
Rialto equity in
earnings from unconsolidated entities
|
9,114
|
|
722
|
Rialto other expense,
net
|
(8,791)
|
|
(16,658)
|
Rialto operating
earnings (loss)
|
$
|
9,212
|
|
(843)
|
|
|
|
|
Lennar Multifamily
revenues
|
$
|
93,256
|
|
88,685
|
Lennar Multifamily
costs and expenses
|
97,199
|
|
92,649
|
Lennar Multifamily
equity in earnings from unconsolidated entities
|
2,742
|
|
23,147
|
Lennar Multifamily
operating earnings (loss)
|
$
|
(1,201)
|
|
19,183
|
LENNAR CORPORATION
AND SUBSIDIARIES
Summary of Deliveries, New Orders and Backlog
(Dollars in thousands, except average sales price)
(unaudited)
|
|
|
|
For the Three
Months Ended February 28,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Deliveries:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
3,165
|
|
2,470
|
|
$
|
1,066,072
|
|
767,460
|
|
$
|
337,000
|
|
311,000
|
Central
|
1,687
|
|
1,439
|
|
603,768
|
|
488,741
|
|
358,000
|
|
340,000
|
West
|
1,475
|
|
1,154
|
|
802,473
|
|
560,753
|
|
544,000
|
|
486,000
|
Other
|
438
|
|
390
|
|
199,420
|
|
178,939
|
|
455,000
|
|
459,000
|
Total
|
6,765
|
|
5,453
|
|
$
|
2,671,733
|
|
1,995,893
|
|
$
|
395,000
|
|
366,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Of the total homes
delivered listed above, 31 homes with a dollar value of $22.6
million and an average sales price of $729,000 represent home
deliveries from unconsolidated entities for the three months ended
February 28, 2018, compared to 20 home deliveries with a dollar
value of $12.1 million and an average sales price of $605,000 for
the three months ended February 28, 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
Orders:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
4,014
|
|
2,944
|
|
$
|
1,330,389
|
|
934,788
|
|
$
|
331,000
|
|
318,000
|
Central
|
2,067
|
|
1,620
|
|
738,561
|
|
544,866
|
|
357,000
|
|
336,000
|
West
|
1,804
|
|
1,550
|
|
1,039,120
|
|
788,614
|
|
576,000
|
|
509,000
|
Other
|
571
|
|
369
|
|
260,931
|
|
172,144
|
|
457,000
|
|
467,000
|
Total
|
8,456
|
|
6,483
|
|
$
|
3,369,001
|
|
2,440,412
|
|
$
|
398,000
|
|
376,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Of the total new
orders listed above, 26 homes with a dollar value of $16.3 million
and an average sales price of $628,000 represent new orders from
unconsolidated entities for the three months ended February 28,
2018, compared to five new orders with a dollar value of $4.2
million and an average sales price of $847,000 for the three months
ended February 28, 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February
28,
|
|
2018
(1)
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Backlog:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East (2)
|
7,925
|
|
4,081
|
|
$
|
2,954,113
|
|
1,422,381
|
|
$
|
373,000
|
|
349,000
|
Central
|
4,431
|
|
2,502
|
|
1,813,223
|
|
877,904
|
|
409,000
|
|
351,000
|
West
|
3,536
|
|
1,926
|
|
2,224,561
|
|
976,453
|
|
629,000
|
|
507,000
|
Other
|
1,674
|
|
508
|
|
681,860
|
|
249,237
|
|
407,000
|
|
491,000
|
Total
|
17,566
|
|
9,017
|
|
$
|
7,673,757
|
|
3,525,975
|
|
$
|
437,000
|
|
391,000
|
|
Of the total homes in
backlog listed above, 18 homes with a backlog dollar value of $8.9
million and an average sales price of $494,000 represent the
backlog from unconsolidated entities at February 28, 2018,
compared to 15 homes with a backlog dollar value of $8.1 million
and an average sales price of $541,000 at February 28,
2017.
|
|
(1)
|
During the three
months ended February 28, 2018, the Company acquired a total of
6,940 homes in backlog in connection with the CalAtlantic
acquisition. Of the homes in backlog acquired 2,776 homes were
in the East, 1,838 homes were in the Central, 1,200 homes were in
the West and 1,126 homes were in Other.
|
(2)
|
During the three
months ended February 28, 2017, the Company acquired 364 homes in
backlog in connection with the WCI acquisition.
|
Lennar's reportable homebuilding segments and all other
homebuilding operations not required to be reported separately have
divisions located in:
East: Florida,
Georgia, Maryland, New
Jersey, North Carolina,
South Carolina and Virginia
Central: Arizona,
Colorado and Texas
West: California and
Nevada
Other: Illinois,
Indiana, Minnesota, Oregon, Tennessee, Utah and Washington
LENNAR CORPORATION
AND SUBSIDIARIES
Supplemental
Data
(Dollars in
thousands)
(unaudited)
|
|
|
|
February
28,
|
|
November
30,
|
|
February
28,
|
|
2018
|
|
2017
|
|
2017
|
Lennar Homebuilding
debt
|
$
|
10,382,540
|
|
6,410,003
|
|
5,778,306
|
Stockholders'
equity
|
13,060,930
|
|
7,872,317
|
|
7,106,053
|
Total
capital
|
$
|
23,443,470
|
|
14,282,320
|
|
12,884,359
|
Lennar
Homebuilding debt to total capital
|
44.3%
|
|
44.9%
|
|
44.8%
|
|
|
|
|
|
|
|
|
|
Lennar Homebuilding
debt
|
$
|
10,382,540
|
|
6,410,003
|
|
5,778,306
|
Less: Lennar
Homebuilding cash and cash equivalents
|
733,905
|
|
2,282,925
|
|
640,816
|
Net Lennar
Homebuilding debt
|
$
|
9,648,635
|
|
4,127,078
|
|
5,137,490
|
Net Lennar
Homebuilding debt to total capital (1)
|
42.5%
|
|
34.4%
|
|
42.0%
|
|
(1)
|
Net Lennar
Homebuilding debt to total capital is a non-GAAP financial measure
defined as net Lennar Homebuilding debt (Lennar Homebuilding debt
less Lennar Homebuilding cash and cash equivalents) divided by
total capital (net Lennar Homebuilding debt plus stockholders'
equity). The Company believes the ratio of net Lennar Homebuilding
debt to total capital is a relevant and a useful financial measure
to investors in understanding the leverage employed in Lennar
Homebuilding operations. However, because net Lennar Homebuilding
debt to total capital is not calculated in accordance with GAAP,
this financial measure should not be considered in isolation or as
an alternative to financial measures prescribed by GAAP. Rather,
this non-GAAP financial measure should be used to supplement the
Company's GAAP results.
|
View original
content:http://www.prnewswire.com/news-releases/lennar-reports-first-quarter-results-300624117.html
SOURCE Lennar Corporation