MIAMI, March 27, 2019 /PRNewswire/ --
- Net earnings of $239.9
million, or $0.74 per diluted
share, compared to net earnings of $136.2
million, or $0.53 per diluted
share
- Deliveries of 8,820 homes – up 30%
- New orders of 10,463 homes – up 24%; new orders dollar value
of $4.2 billion – up 23%
- Backlog of 17,259 homes – down 2%; backlog dollar value of
$7.1 billion – down 7%
- Revenues of $3.9 billion – up
30%
- Homebuilding operating margins of $384.9 million, compared to $258.1 million
-
- Gross margin on home sales of 20.1%, compared to
19.5%
- S,G&A expenses as a % of revenues from home sales of
9.5%, compared to 9.7%
- Operating margin on home sales of 10.6%, compared to
9.8%
- Financial Services operating earnings (net of noncontrolling
interests) of $21.8 million, compared
to $25.9 million
- Multifamily operating earnings of $6.8 million, compared to operating loss of
$1.2 million
- Homebuilding cash and cash equivalents of $853 million
- Homebuilding debt to total capital of 38.5%
Lennar Corporation (NYSE: LEN and LEN.B), one
of the nation's leading homebuilders, today reported results
for its first quarter ended February 28,
2019. First quarter net earnings attributable to Lennar in
2019 were $239.9 million, or
$0.74 per diluted share, compared to
first quarter net earnings attributable to Lennar in 2018 of
$136.2 million, or $0.53 per diluted share.
Stuart Miller, Executive Chairman
of Lennar, said, "We are pleased to announce our results for the
first quarter where we achieved net earnings of $239.9 million, or $0.74 per diluted share, compared to $136.2 million, or $0.53 per diluted share in the prior year. Our
new order growth exceeded the high end of our guidance by 5%, while
our deliveries fell short of guidance primarily due to
well-documented weather issues across the country. Even with lower
than expected revenues in the first quarter, our continued focus on
homebuilding operating efficiencies allowed the Company to increase
operating earnings at a higher rate than revenues."
Mr. Miller continued, "We continued to see choppiness in the
marketplace during our first quarter, consistent with what we
highlighted on our fourth quarter conference call. However, during
the quarter, mortgage interest rates subsided and ultimately pulled
back and home prices moderated providing a catalyst for the new
home market to correct itself. Accordingly, sequentially throughout
the first quarter, we saw increased interest in new home purchases
as part of an improving and stabilizing housing market. We continue
to believe that the basic underlying housing market fundamentals of
low unemployment, higher wages and low inventory levels remain
favorable."
"During the first quarter, we advanced our strategy of reverting
to our pure-play core homebuilding platform. We completed the sale
of our Berkshire Hathaway real estate brokerage business, the
majority of our retail title business along with our title
insurance underwriter and our retail mortgage business."
Rick Beckwitt, Chief Executive
Officer of Lennar, said, "Despite the uneven market conditions in
the first quarter, we produced strong results. Our core
homebuilding operations continued to leverage our size and scale in
the leading markets. Our homebuilding gross margin was 20.1%, while
our SG&A of 9.5% marked an all-time, first-quarter low. Using
our strong cash position, we repurchased an additional one
million shares of our stock for $47.0
million during the quarter."
Jon Jaffe, President of Lennar,
said, "During the first quarter, we continued our strategic
production focus, controlling direct construction costs, while
enhancing our 'Builder of Choice' status with our trades. These
important relationships with our subcontractors will be
particularly relevant as we ramp up production during the year and
remain on target to meet our 2019 synergy goals."
Mr. Miller concluded, "As we move into the heart of the spring
selling season, we are optimistic that we will see a continued
improvement in the demand for new homes. With a solid balance
sheet, strong cash flow generation and continued execution of our
core operating strategies, we believe that we are well positioned
to produce strong results throughout 2019."
RESULTS OF OPERATIONS
THREE MONTHS ENDED FEBRUARY 28, 2019
COMPARED TO
THREE MONTHS ENDED FEBRUARY 28,
2018
On February 12, 2018, Lennar
Corporation completed its acquisition of CalAtlantic Group, Inc.
("CalAtlantic"). Prior year information includes CalAtlantic only
after the acquisition date.
Homebuilding
Revenues from home sales increased 36% in the first quarter of
2019 to $3.6 billion from
$2.6 billion in the first quarter of
2018. Revenues were higher primarily due to a 31% increase in the
number of home deliveries, excluding unconsolidated entities, and a
4% increase in the average sales price of homes delivered. New home
deliveries, excluding unconsolidated entities, increased to 8,802
homes in the first quarter of 2019 from 6,734 homes in the first
quarter of 2018, primarily as a result of the significant increase
in volume resulting from the CalAtlantic acquisition. The average
sales price of homes delivered was $410,000 in the first quarter of 2019, compared
to $393,000 in the first quarter of
2018. The increase in average sales price primarily resulted from
the CalAtlantic acquisition. Sales incentives offered to homebuyers
were $25,300 per home delivered in
the first quarter of 2019, or 5.8% as a percentage of home sales
revenue, compared to $22,300 per home
delivered in the first quarter of 2018, or 5.4% as a percentage of
home sales revenue, and $25,000 per
home delivered in the fourth quarter of 2018, or 5.6% as a
percentage of home sales revenue.
Gross margins on home sales were $726.1
million, or 20.1%, in the first quarter of 2019, compared to
$516.6 million, or 19.5%, in the
first quarter of 2018. The gross margin percentage on home sales
increased primarily because the first quarter of 2018 included
$55.0 million or 210 basis points of
backlog/construction in progress write-up related to purchase
accounting adjustments on CalAtlantic homes that were delivered in
that quarter. There was also an increase in average sales
price in the first quarter of 2019, offset by higher construction
costs and increased sales incentives.
Selling, general and administrative expenses were $343.3 million in the first quarter of 2019,
compared to $257.2 million in the
first quarter of 2018. As a percentage of revenues from home sales,
selling, general and administrative expenses improved to 9.5% in
the first quarter of 2019, from 9.7% in the first quarter of 2018,
due to improved operating leverage as a result of an increase in
home deliveries and continued benefit from technology
initiatives.
Other homebuilding revenue, gross margin on land sales,
homebuilding equity in loss from unconsolidated entities and
homebuilding other income (expense), net, totaled a net loss of
$13.2 million in the first quarter of
2019, compared to net income of $154.5
million in the first quarter of 2018. Homebuilding equity in
loss from unconsolidated entities was $13.8
million in the first quarter of 2019, compared to
$14.1 million in the first quarter of
2018. In the first quarter of 2019, Homebuilding equity in loss
from unconsolidated entities was primarily attributable to the
Company's share of net operating losses from its unconsolidated
entities. In the first quarter of 2018, Homebuilding equity in loss
from unconsolidated entities was primarily attributable to the
Company's share of valuation adjustments related to assets of
Homebuilding's unconsolidated entities and the Company's share of
net operating losses from its unconsolidated entities. Homebuilding
other income (expense), net, was ($1.5)
million in the first quarter of 2019, compared to
$170.0 million in the first quarter
of 2018. 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 Homebuilding's strategic joint ventures, Treasure Island
Holdings.
Homebuilding interest expense was $64.6
million in the first quarter of 2019 ($61.3 million was included in costs of homes
sold, $0.3 million in costs of land
sold and $3.0 million in homebuilding
other expense, net), compared to $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 homebuilding
other income, net). Interest expense included in costs of homes
sold increased primarily due to an increase in home deliveries.
Financial Services
Operating earnings for the Financial Services segment were
$21.8 million in the first quarter of
2019 (which included $19.0 million of
operating earnings and an add back of $2.8
million of net loss attributable to noncontrolling
interests). Operating earnings in the first quarter of 2018 were
$25.9 million. Operating earnings
were impacted by the sale of non-core businesses in the first
quarter of 2019 and a decrease in Rialto Mortgage Finance
securitization revenues as a result of lower volume and
margins.
During the first quarter of 2019, the Company sold the majority
of its retail title agency business and its wholly owned title
insurance carrier. In addition, the Company sold its real estate
brokerage business, which operated only in Florida, and its retail mortgage business.
Multifamily
Operating earnings for the Multifamily segment were $6.8 million in the first quarter of 2019,
primarily due to the segment's $3.6
million share of a gain as a result of the sale of one
operating property by Multifamily's unconsolidated entities and
$11.9 million gain on the sale of an
investment in an operating property, partially offset by general
and administrative expenses. In the first quarter of 2018, the
Multifamily segment had an operating loss of $1.2 million primarily due to general and
administrative expenses partially offset by the segment's
$4.1 million share of a gain as a
result of the sale of one operating property by one of
Multifamily's unconsolidated entities and management fee
income.
Corporate General and Administrative Expenses
Corporate general and administrative expenses were $79.3 million, or 2.1% as a percentage of total
revenues, in the first quarter of 2019, compared to $67.8 million, or 2.3% as a percentage of total
revenues, in the first quarter of 2018. The decrease in corporate
general and administrative expenses as a percentage of total
revenues was due to improved operating leverage as a result of an
increase in home deliveries.
OTHER TRANSACTIONS
Share Repurchases
During the first quarter of 2019, the Company's Board of
Directors authorized the Company to repurchase up to the lesser of
$1 billion in value, or 25 million in
shares, of the Company's outstanding Class A or Class B common
stock. The repurchase authorization has no expiration. Under this
repurchase program, the Company repurchased one million shares of
its Class A common stock for $47.0 million at an average per
share price of $46.98.
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 and closing services primarily for buyers
of Lennar's homes and, through Rialto Mortgage Finance, originates
mortgage loans secured primarily by commercial real estate
properties throughout the United
States. Lennar's Multifamily segment is a nationwide
developer of high-quality multifamily rental properties. Lennar
Ventures drives the Company's technology and innovation strategies.
For more information about Lennar, please visit 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 our 2019 synergy goals
related to the CalAtlantic integration, our expected home
deliveries in fiscal 2019, our belief regarding 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 an extended slowdown in the real estate
markets across the nation, or in regions where we have significant
homebuilding or multifamily development activities; 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 Homebuilding and Multifamily
businesses; reduced availability of mortgage financing or increased
interest rates; decreased demand for our homes or Multifamily
rental properties, or our inability to successfully sell our
apartment developments; our inability to continue to realize the
anticipated synergy benefits from the CalAtlantic integration;
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 and resulting possible future write-downs
of the carrying value of our real estate assets; the possibility
that the Tax Cuts and Jobs Act will have more negative than
positive impact on us; unfavorable losses in legal proceedings;
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, 2018.
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, March 27, 2019. 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 203-369-1372 and
entering 657103 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,
|
|
2019
|
|
2018
|
Revenues:
|
|
|
|
Homebuilding
|
$
|
3,623,721
|
|
|
2,662,093
|
|
Financial
Services
|
143,311
|
|
|
196,087
|
|
Multifamily
|
97,394
|
|
|
93,256
|
|
Other
|
3,656
|
|
|
29,355
|
|
Total
revenues
|
$
|
3,868,082
|
|
|
2,980,791
|
|
|
|
|
|
Homebuilding
operating earnings
|
$
|
369,595
|
|
|
413,927
|
|
Financial Services
operating earnings
|
18,972
|
|
|
25,862
|
|
Multifamily operating
earnings (loss)
|
6,797
|
|
|
(1,201)
|
|
Other operating
earnings
|
3,103
|
|
|
2,845
|
|
Acquisition and
integration costs related to CalAtlantic
|
—
|
|
|
(104,195)
|
|
Corporate general and
administrative expenses
|
(79,343)
|
|
|
(67,810)
|
|
Earnings before
income taxes
|
319,124
|
|
|
269,428
|
|
Provision for income
taxes (1)
|
(79,700)
|
|
|
(132,611)
|
|
Net earnings
(including net earnings (loss) attributable to noncontrolling
interests)
|
239,424
|
|
|
136,817
|
|
Less: Net earnings
(loss) attributable to noncontrolling interests
|
(486)
|
|
|
602
|
|
Net earnings
attributable to Lennar
|
$
|
239,910
|
|
|
136,215
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
Basic
|
321,339
|
|
|
253,665
|
|
Diluted
|
321,349
|
|
|
254,448
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
Basic
|
$
|
0.74
|
|
|
0.53
|
|
Diluted
|
$
|
0.74
|
|
|
0.53
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
Interest incurred
(2)
|
$
|
104,383
|
|
|
84,214
|
|
|
|
|
|
EBIT
(3):
|
|
|
|
Net earnings
attributable to Lennar
|
$
|
239,910
|
|
|
136,215
|
|
Provision for income
taxes
|
79,700
|
|
|
132,611
|
|
Interest
expense
|
64,601
|
|
|
51,224
|
|
EBIT
|
$
|
384,211
|
|
|
320,050
|
|
|
|
(1)
|
Provision for income
taxes for the three months ended February 28, 2018 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)
|
Amount represents
interest incurred related to homebuilding debt.
|
(3)
|
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,
|
|
2019
|
|
2018
|
Homebuilding
revenues:
|
|
|
|
Sales of
homes
|
$
|
3,608,129
|
|
|
2,649,140
|
|
Sales of
land
|
13,783
|
|
|
12,953
|
|
Other homebuilding
revenue
|
1,809
|
|
|
—
|
|
Total
revenues
|
3,623,721
|
|
|
2,662,093
|
|
|
|
|
|
Homebuilding costs
and expenses:
|
|
|
|
Costs of homes
sold
|
2,882,050
|
|
|
2,132,512
|
|
Costs of land
sold
|
13,526
|
|
|
14,368
|
|
Selling, general and
administrative
|
343,259
|
|
|
257,153
|
|
Total costs and
expenses
|
3,238,835
|
|
|
2,404,033
|
|
Homebuilding
operating margins
|
384,886
|
|
|
258,060
|
|
Homebuilding equity
in loss from unconsolidated entities
|
(13,756)
|
|
|
(14,128)
|
|
Homebuilding other
income (expenses), net
|
(1,535)
|
|
|
169,995
|
|
Homebuilding
operating earnings
|
$
|
369,595
|
|
|
413,927
|
|
|
|
|
|
Financial Services
revenues
|
$
|
143,311
|
|
|
196,087
|
|
Financial Services
costs and expenses
|
124,339
|
|
|
170,225
|
|
Financial Services
operating earnings
|
$
|
18,972
|
|
|
25,862
|
|
|
|
|
|
Multifamily
revenues
|
$
|
97,394
|
|
|
93,256
|
|
Multifamily costs and
expenses
|
101,178
|
|
|
97,199
|
|
Multifamily equity in
earnings (loss) from unconsolidated entities and other
gain
|
10,581
|
|
|
2,742
|
|
Multifamily
operating earnings (loss)
|
$
|
6,797
|
|
|
(1,201)
|
|
|
|
|
|
Other
revenues
|
$
|
3,656
|
|
|
29,355
|
|
Other costs and
expenses
|
1,622
|
|
|
26,607
|
|
Other equity in
earnings from unconsolidated entities
|
8,330
|
|
|
8,955
|
|
Other expense,
net
|
(7,261)
|
|
|
(8,858)
|
|
Other operating
earnings
|
$
|
3,103
|
|
|
2,845
|
|
LENNAR CORPORATION AND
SUBSIDIARIES
Summary of Deliveries, New Orders and
Backlog
(Dollars in thousands, except average sales price)
(unaudited)
In connection with the CalAtlantic acquisition in 2018, the
Company reassessed how it evaluates the business and allocates
resources. As a result, in the fourth quarter of 2018 the Company
modified its homebuilding operating segments into four reportable
segments: Homebuilding East, Homebuilding Central, Homebuilding
Texas, and Homebuilding West. All prior periods have been adjusted
to conform with the Company's current presentation.
Lennar's reportable homebuilding segments and all other
homebuilding operations not required to be reported separately have
divisions located in:
East: Florida, New
Jersey, North and South
Carolina
Central: Georgia, Illinois, Indiana, Maryland, Minnesota, Tennessee and Virginia
Texas: Texas
West: Arizona, California, Colorado, Nevada, Oregon, Utah
and Washington
Other: Urban divisions and other homebuilding related
investments, including FivePoint
|
For the Three
Months Ended February 28,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Deliveries:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
3,612
|
|
|
2,757
|
|
|
$
|
1,226,435
|
|
|
909,585
|
|
|
$
|
340,000
|
|
|
330,000
|
|
Central
|
1,124
|
|
|
654
|
|
|
433,125
|
|
|
253,325
|
|
|
385,000
|
|
|
387,000
|
|
Texas
|
1,251
|
|
|
1,090
|
|
|
412,429
|
|
|
348,087
|
|
|
330,000
|
|
|
319,000
|
|
West
|
2,825
|
|
|
2,225
|
|
|
1,537,503
|
|
|
1,127,635
|
|
|
544,000
|
|
|
507,000
|
|
Other
|
8
|
|
|
39
|
|
|
7,758
|
|
|
33,101
|
|
|
970,000
|
|
|
849,000
|
|
Total
|
8,820
|
|
|
6,765
|
|
|
$
|
3,617,250
|
|
|
2,671,733
|
|
|
$
|
410,000
|
|
|
395,000
|
|
Of the total homes delivered listed above, 18 homes with a
dollar value of $9.1 million and an
average sales price of $507,000
represent home deliveries from unconsolidated entities for the
three months ended February 28, 2019,
compared to 31 home deliveries with a dollar value of $22.6 million and an average sales price of
$729,000 for the three months ended
February 28, 2018.
New
Orders:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
4,493
|
|
|
3,563
|
|
|
$
|
1,521,431
|
|
|
1,152,418
|
|
|
$
|
339,000
|
|
|
323,000
|
|
Central
|
1,422
|
|
|
785
|
|
|
537,596
|
|
|
308,429
|
|
|
378,000
|
|
|
393,000
|
|
Texas
|
1,424
|
|
|
1,374
|
|
|
456,959
|
|
|
432,178
|
|
|
321,000
|
|
|
315,000
|
|
West
|
3,112
|
|
|
2,705
|
|
|
1,629,814
|
|
|
1,450,235
|
|
|
524,000
|
|
|
536,000
|
|
Other
|
12
|
|
|
29
|
|
|
11,313
|
|
|
25,741
|
|
|
943,000
|
|
|
888,000
|
|
Total
|
10,463
|
|
|
8,456
|
|
|
$
|
4,157,113
|
|
|
3,369,001
|
|
|
$
|
397,000
|
|
|
398,000
|
|
Of the total new orders listed above, 15 homes with a dollar
value of $9.7 million and an average
sales price of $647,000 represent new
orders from unconsolidated entities for the three months ended
February 28, 2019, compared to 26 new
orders with a dollar value of $16.3
million and an average sales price of $628,000 for the three months ended February 28, 2018.
|
February
28,
|
|
2019
|
|
2018
(1)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Backlog:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
7,956
|
|
|
6,923
|
|
|
$
|
2,817,706
|
|
|
2,533,377
|
|
|
$
|
354,000
|
|
|
366,000
|
|
Central
|
2,284
|
|
|
2,188
|
|
|
894,724
|
|
|
865,628
|
|
|
392,000
|
|
|
396,000
|
|
Texas
|
2,321
|
|
|
2,576
|
|
|
805,250
|
|
|
961,976
|
|
|
347,000
|
|
|
373,000
|
|
West
|
4,688
|
|
|
5,860
|
|
|
2,579,762
|
|
|
3,290,340
|
|
|
550,000
|
|
|
561,000
|
|
Other
|
10
|
|
|
19
|
|
|
12,543
|
|
|
22,436
|
|
|
1,254,000
|
|
|
1,181,000
|
|
Total
|
17,259
|
|
|
17,566
|
|
|
$
|
7,109,985
|
|
|
7,673,757
|
|
|
$
|
412,000
|
|
|
437,000
|
|
Of the total homes in backlog listed above, 14 homes with a
backlog dollar value of $7.7 million
and an average sales price of $552,000 represent the backlog from
unconsolidated entities at February 28, 2019, compared to 18
homes with a backlog dollar value of $8.9
million and an average sales price of $494,000 at February 28, 2018.
(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, 2,305 homes were in
the East, 1,342 homes were in the Central, 953 homes were in Texas
and 2,340 homes were in the West.
|
|
LENNAR CORPORATION
AND SUBSIDIARIES
|
Supplemental
Data
|
(Dollars in
thousands)
|
(unaudited)
|
|
|
February
28,
|
|
November
30,
|
|
February
28,
|
|
2019
|
|
2018
|
|
2018
|
Homebuilding
debt
|
$
|
9,256,423
|
|
|
8,543,868
|
|
|
10,382,540
|
|
Stockholders'
equity
|
14,786,814
|
|
|
14,581,535
|
|
|
13,060,930
|
|
Total
capital
|
$
|
24,043,237
|
|
|
23,125,403
|
|
|
23,443,470
|
|
Homebuilding debt
to total capital
|
38.5
|
%
|
|
36.9
|
%
|
|
44.3
|
%
|
|
|
|
|
|
|
Homebuilding
debt
|
$
|
9,256,423
|
|
|
8,543,868
|
|
|
10,382,540
|
|
Less: Homebuilding
cash and cash equivalents
|
852,551
|
|
|
1,337,807
|
|
|
733,905
|
|
Net homebuilding
debt
|
$
|
8,403,872
|
|
|
7,206,061
|
|
|
9,648,635
|
|
Net homebuilding
debt to total capital (1)
|
36.2
|
%
|
|
33.1
|
%
|
|
42.5
|
%
|
|
|
(1)
|
Net homebuilding debt
to total capital is a non-GAAP financial measure defined as net
homebuilding debt (homebuilding debt less homebuilding cash
and cash equivalents) divided by total capital (net homebuilding
debt plus stockholders' equity). The Company believes the ratio of
net homebuilding debt to total capital is a relevant and a useful
financial measure to investors in understanding the leverage
employed in homebuilding operations. However, because net
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-eps-of-0-74--300819174.html
SOURCE Lennar Corporation