2022 Second Quarter Highlights - comparisons to the prior
year quarter
- Net earnings per diluted share increased 69% to $4.49
-
- Increased 59% to $4.69, excluding
mark-to-market losses on technology investments in both years and
the gain on the sale of the Company's residential solar business in
the prior year
- Net earnings increased 59% to $1.3
billion
-
- Increased 49% to $1.4 billion,
excluding mark-to-market losses on technology investments in both
years and the gain on the sale of the Company's residential solar
business in the prior year
- Deliveries increased 14% to 16,549 homes
- New orders increased 4% to 17,792 homes; new orders dollar
value increased 20% to $9.1
billion
- Backlog increased 16% to 28,624 homes; backlog dollar value
increased 33% to $14.7 billion
- Total revenues increased 30% to $8.4
billion
- Homebuilding operating earnings increased to $1.9 billion, compared to operating earnings of
$1.1 billion
-
- Gross margin on home sales improved 340 basis points ("bps") to
29.5%
- S,G&A expenses as a % of revenues from home sales improved
150 bps to 6.1%
- Net margin on home sales improved 490 bps to 23.4%
- Financial Services operating earnings of $103.9 million, compared to operating earnings of
$121.3 million
- Multifamily operating earnings of $0.7
million, compared to operating earnings of $22.4 million
- Lennar Other operating loss of $108.4
million, compared to operating loss of $54.1 million
- Homebuilding cash and cash equivalents of $1.3 billion
- Controlled homesites increased to 62%, compared to 50%
- No borrowings under the Company's $2.575
billion revolving credit facility
- Homebuilding debt to total capital improved to 17.7%, compared
to 23.1%
- Repurchased 4.1 million shares of Lennar common stock for
$320.6 million
MIAMI, June 21,
2022 /PRNewswire/ -- Lennar Corporation (NYSE: LEN
and LEN.B), one of the nation's leading homebuilders,
today reported results for its second quarter ended May 31, 2022. Second quarter net earnings
attributable to Lennar in 2022 were $1.3
billion, or $4.49 per diluted
share, compared to second quarter net earnings attributable to
Lennar in 2021 of $831.4 million, or
$2.65 per diluted share. Excluding
mark-to-market losses on technology investments in both years and a
gain on the sale of the Company's residential solar business in the
prior year, second quarter net earnings attributable to Lennar in
2022 were $1.4 billion, or
$4.69 per diluted share, compared to
second quarter net earnings attributable to Lennar in 2021 of
$923.6 million, or $2.95 per diluted share.
Stuart Miller, Executive Chairman
of Lennar, said, "At this complicated moment in the market, we are
pleased to report second quarter earnings of $1.3 billion, or $4.49 per diluted share, compared to $831.4 million, or $2.65 per diluted share for the second quarter
last year. While our new orders grew 4% compared to last year's
second quarter, we achieved a homebuilding gross margin of 29.5%
and homebuilding S,G&A of 6.1%, leading to a 23.4% net margin,
even as materials costs and wages have increased. Our home
deliveries were 16,549 and above the high end of our guidance given
at the beginning of the quarter."
"While our second quarter results demonstrate strength and
excellent performance throughout the quarter, the weight of a rapid
doubling of interest rates over six months, together with
accelerated price appreciation, began to drive buyers in many
markets to pause and reconsider. We began to see these effects
after quarter end."
"The Fed's stated determination to curtail inflation through
interest rate increases and quantitative tightening have begun to
have the desired effect of slowing sales in some markets and
stalling price increases across the country. While we believe that
there remains a significant shortage of dwellings, and especially
workforce housing, in the United
States, the relationship between price and interest rates is
going through a rebalance."
"Accordingly, we are laser focused on traffic, affordability,
the quality of our backlog, along with cancellation rates and
completed, unsold inventory levels which, to date, are both at low
levels. Additionally, we are focused on balance sheet strength as
we ended the quarter with $1.3
billion in cash, no borrowings on our $2.6 billion revolver and homebuilding debt to
capital of 17.7%. Our balance sheet has never been in a stronger
position than it is today."
Rick Beckwitt, Co-Chief Executive
Officer and Co-President of Lennar, said, "During the second
quarter, we continued to make progress on our land light strategy.
This was evidenced by our controlled homesite percentage increasing
to 62% from 50% year over year. This progress contributed to a
return on equity of 21.4%, a 260 basis point improvement over last
year's second quarter."
Jon Jaffe, Co-Chief Executive
Officer and Co-President of Lennar, said, "During the quarter, our
homebuilding machine continued to be intensely focused on
production. Our cycle time during the quarter increased only
slightly sequentially so it appears that the well documented supply
chain issues have started to subside. Our quarterly starts and
sales pace remained strong at 6.2 homes and 5.0 homes per
community, respectively, in the second quarter."
Mr. Miller concluded, "We recognize that current attempts at
guidance are tantamount to 'guessing' and not 'guiding.' Therefore,
for our third quarter, we will give broad boundaries for deliveries
between 17,000 to 18,500 homes and boundaries for gross margins
between 28.5% – 29.5%. For the full year, we will leave our
delivery expectations at approximately 68,000 homes and, at this
time, will not provide updated guidance for other items.
Recognizing that the Fed's actions are still quite fluid and
responsive to inflation data, the housing market will rebalance
supply and demand, and interest rates and purchase price as market
conditions evolve. Nevertheless, at Lennar, we are operating from a
position of strength, enabling us to continue to execute on our
core strategies."
RESULTS OF OPERATIONS
THREE MONTHS ENDED MAY 31, 2022 COMPARED
TO
THREE MONTHS ENDED MAY 31,
2021
Homebuilding
Revenues from home sales increased 33% in the second quarter of
2022 to $8.0 billion from
$6.0 billion in the second quarter of
2021. Revenues were higher primarily due to a 14% increase in the
number of home deliveries to 16,549 homes from 14,493 homes and a
17% increase in the average sales price to $483,000 from $414,000.
Gross margin on home sales were $2.4
billion, or 29.5%, in the second quarter of 2022, compared
to $1.6 billion, or 26.1%, in the
second quarter of 2021. During the second quarter of 2022, an
increase in revenues per square foot was offset by an increase in
costs per square foot primarily due to higher material and labor
costs. Overall, gross margins improved year over year as land costs
remained relatively flat while interest expense decreased as a
result of the Company's focus on reducing debt.
Selling, general and administrative expenses were $486.6 million in the second quarter of 2022,
compared to $455.2 million in the
second quarter of 2021. As a percentage of revenues from home
sales, selling, general and administrative expenses improved to
6.1% in the second quarter of 2022, from 7.6% in the second quarter
of 2021. This was the lowest percentage for a second quarter in the
Company's history primarily due to a decrease in broker commissions
and the benefits of the Company's technology efforts.
Financial Services
Operating earnings for the Financial Services segment were
$103.9 million in the second quarter
of 2022, compared to $121.3 million
in the second quarter of 2021. The decrease in operating earnings
was primarily due to lower mortgage net margins driven by a more
competitive mortgage market, partially offset by an increase in
rate lock volume and an increase in profit per order in the title
business.
Other Ancillary Businesses
Operating earnings for the Multifamily segment were $0.7 million in the second quarter of 2022,
compared to $22.4 million in the
second quarter of 2021. Operating loss for the Lennar Other segment
was $108.4 million in the second
quarter of 2022, compared to $54.1
million in the second quarter of 2021. Lennar Other
operating loss in the second quarter of 2022 was primarily due to
mark-to-market losses on the Company's publicly traded technology
investments. Lennar Other operating loss in the second quarter of
2021 was primarily due to mark-to-market losses on the Company's
publicly traded technology investments, partially offset by the
gain on the sale of the Company's residential solar business.
RESULTS OF OPERATIONS
SIX MONTHS ENDED MAY 31, 2022 COMPARED
TO
SIX MONTHS ENDED MAY 31,
2021
Homebuilding
Revenues from home sales increased 26% in the six months ended
May 31, 2022 to $13.7 billion from $10.9
billion in the six months ended May
31, 2021. Revenues were higher primarily due to a 9%
increase in the number of home deliveries to 29,087 from 26,807 and
a 16% increase in the average sales price to $472,000 from $406,000.
Gross margin on home sales were $3.9
billion, or 28.4%, in the six months ended May 31, 2022, compared to $2.8 billion, or 25.6%, in the six months ended
May 31, 2021. During the six months
ended May 31, 2022, an increase in
revenues per square foot was offset by an increase in costs per
square foot primarily due to higher material and labor costs.
Overall, gross margins improved year over year as land costs
remained relatively flat while interest expense decreased as a
result of the Company's focus on reducing debt.
Selling, general and administrative expenses were $915.0 million in the six months ended
May 31, 2022, compared to
$865.4 million in the six months
ended May 31, 2021. As a percentage
of revenues from home sales, selling, general and administrative
expenses improved to 6.7% in the six months ended May 31, 2022, from 8.0% in the six months ended
May 31, 2021. The improvement was
primarily due to a decrease in broker commissions and the benefits
of the Company's technology efforts.
Financial Services
Operating earnings for the Financial Services segment were
$194.7 million in the six months
ended May 31, 2022, compared to
$267.5 million in the six months
ended May 31, 2021. The decrease in
operating earnings was primarily due to lower mortgage net margins
driven by a more competitive mortgage market, partially offset by
an increase in rate lock volume.
Other Ancillary Businesses
Operating earnings for the Multifamily segment were $6.1 million in the six months ended May 31, 2022, compared to $21.5 million in the six months ended
May 31, 2021. Operating loss for the
Lennar Other segment was $511.6
million in the six months ended May
31, 2022, compared to operating earnings of $417.2 million in the six months ended
May 31, 2021. Lennar Other operating
loss for the six months ended May 31,
2022 was primarily due to mark-to-market losses on the
Company's publicly traded technology investments. Lennar Other
operating earnings for the six months ended May 31, 2021 was primarily due to mark-to-market
unrealized gains on the Company's publicly traded technology
investments and the gain on the sale of the Company's residential
solar business.
Tax Rate
For the six months ended May 31,
2022 and 2021, the Company had a tax provision of
$599.7 million and $570.2 million, respectively, which resulted in
an overall effective income tax rate of 24.7% and 23.7%,
respectively. The overall effective income tax rate was higher in
2022 primarily due to the expiration of the new energy efficient
home tax credit.
Share Repurchases
During the second quarter of 2022, the Company repurchased 4.1
million shares of its common stock for $320.6 million at an average per share price of
$78.20. For the six months ended
May 31, 2022, the Company repurchased
a total of 9.4 million shares of its common stock for $846.9 million at an average share price of
$90.40.
Credit Facility
In May 2022, the Company amended
the credit agreement governing its unsecured revolving credit
facility (the "Credit Facility") to increase the commitments from
$2.5 billion to $2.575 billion and extend the maturity to
May 2027, except with regard to
$350 million which matures in
April 2024. The Credit Facility has a
$425 million accordion feature,
subject to additional commitments, thus the maximum borrowings are
$3.0 billion.
Liquidity
At May 31, 2022, the Company had $1.3 billion of Homebuilding cash and cash
equivalents and no borrowings under its $2.575 billion revolving credit facility, thereby
providing $3.9 billion of
available capacity.
Guidance
The following are the Company's expected results of its
homebuilding and financial services activities for the third
quarter of 2022:
|
|
|
New Orders
|
16,000 -
18,000
|
|
Deliveries
|
17,000 -
18,500
|
|
Average Sales
Price
|
Slightly higher than Q2
2022
|
|
Gross Margin % on Home
Sales
|
28.5% -
29.5%
|
|
S,G&A as a % of
Home Sales
|
6.0% - 6.5%
|
|
Financial Services
Operating Earnings
|
$70 million - $75
million
|
|
About Lennar
Lennar Corporation, founded in 1954, is one of the nation's
leading builders of quality homes for all generations. Lennar
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 LMF Commercial, 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. LENX drives
Lennar's technology, innovation and strategic investments. 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 relating to the
homebuilding market and other markets in which we participate. 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 the potential
negative impact to our business of the ongoing coronavirus
(COVID-19) pandemic; slowdowns in real estate markets in regions
where we have significant Homebuilding or Multifamily development
activities; supply shortages and increased costs related to
construction materials, including lumber, and labor; cost increases
related to real estate taxes and insurance; increased cost of
mortgage financing for homebuyers, increased interest rates or
increased competition in the mortgage industry; reductions in the
market value of the Company's investments in public companies;
decreased demand for our homes or Multifamily rental apartments;
natural disasters or catastrophic events for which our insurance
may not provide adequate coverage; our inability to successfully
execute our strategies and our planned spin-off of certain
businesses; a decline in the value of the land and home inventories
we maintain and resulting possible future writedowns of the
carrying value of our real estate assets; possible 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, 2021. 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 second quarter
earnings will be held at 11:00 a.m. Eastern
Time on Tuesday, June 21, 2022. The call will be
broadcast live on the Internet and can be accessed through the
Company's website at investors.lennar.com. If you are unable to
participate in the conference call, the call will be archived at
investors.lennar.com for 90 days. A replay of the conference call
will also be available later that day by calling 203-369-0110 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
|
|
Six Months
Ended
|
|
May
31,
|
|
May
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenues:
|
|
|
|
|
|
|
|
Homebuilding
|
$
7,977,982
|
|
6,028,041
|
|
13,730,187
|
|
10,971,097
|
Financial
Services
|
200,166
|
|
218,747
|
|
376,867
|
|
462,816
|
Multifamily
|
176,021
|
|
177,473
|
|
443,380
|
|
308,916
|
Lennar
Other
|
4,527
|
|
5,984
|
|
11,778
|
|
12,884
|
Total
revenues
|
$
8,358,696
|
|
6,430,245
|
|
14,562,212
|
|
11,755,713
|
|
|
|
|
|
|
|
|
Homebuilding operating
earnings
|
$
1,880,411
|
|
1,112,475
|
|
2,990,261
|
|
1,945,655
|
Financial Services
operating earnings
|
103,935
|
|
121,320
|
|
194,726
|
|
267,527
|
Multifamily operating
earnings
|
668
|
|
22,397
|
|
6,095
|
|
21,523
|
Lennar Other operating
earnings (loss)
|
(108,424)
|
|
(54,097)
|
|
(511,558)
|
|
417,249
|
Corporate general and
administrative expenses
|
(105,207)
|
|
(90,717)
|
|
(218,868)
|
|
(201,248)
|
Charitable foundation
contribution
|
(16,549)
|
|
(14,493)
|
|
(29,087)
|
|
(26,807)
|
Earnings before income
taxes
|
1,754,834
|
|
1,096,885
|
|
2,431,569
|
|
2,423,899
|
Provision for income
taxes
|
(432,276)
|
|
(260,113)
|
|
(599,696)
|
|
(570,218)
|
Net earnings
(including net earnings attributable to noncontrolling
interests)
|
1,322,558
|
|
836,772
|
|
1,831,873
|
|
1,853,681
|
Less: Net earnings
attributable to noncontrolling interests
|
1,802
|
|
5,409
|
|
7,536
|
|
20,949
|
Net earnings
attributable to Lennar
|
$
1,320,756
|
|
831,363
|
|
1,824,337
|
|
1,832,732
|
|
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
289,895
|
|
308,893
|
|
291,913
|
|
308,957
|
Diluted
|
289,895
|
|
308,893
|
|
291,913
|
|
308,957
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
4.50
|
|
2.66
|
|
6.17
|
|
5.86
|
Diluted
|
$
4.49
|
|
2.65
|
|
6.16
|
|
5.85
|
|
|
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
|
|
|
Interest incurred
(1)
|
$
61,798
|
|
71,453
|
|
121,732
|
|
142,517
|
|
|
|
|
|
|
|
|
EBIT
(2):
|
|
|
|
|
|
|
|
Net earnings
attributable to Lennar
|
$
1,320,756
|
|
831,363
|
|
1,824,337
|
|
1,832,732
|
Provision for income
taxes
|
432,276
|
|
260,113
|
|
599,696
|
|
570,218
|
Interest expense
included in:
|
|
|
|
|
|
|
|
Costs of homes
sold
|
77,608
|
|
88,761
|
|
137,766
|
|
163,708
|
Costs of land
sold
|
87
|
|
633
|
|
204
|
|
1,192
|
Homebuilding other
expense, net
|
5,338
|
|
5,269
|
|
10,574
|
|
10,200
|
Total interest
expense
|
83,033
|
|
94,663
|
|
148,544
|
|
175,100
|
EBIT
|
$
1,836,065
|
|
1,186,139
|
|
2,572,577
|
|
2,578,050
|
|
|
(1)
|
Amount represents
interest incurred related to homebuilding debt.
|
(2)
|
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
|
|
Six Months
Ended
|
|
May
31,
|
|
May
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Homebuilding
revenues:
|
|
|
|
|
|
|
|
Sales of
homes
|
$
7,963,683
|
|
5,980,731
|
|
13,685,440
|
|
10,871,645
|
Sales of
land
|
7,524
|
|
38,785
|
|
31,491
|
|
86,428
|
Other
homebuilding
|
6,775
|
|
8,525
|
|
13,256
|
|
13,024
|
Total
homebuilding revenues
|
7,977,982
|
|
6,028,041
|
|
13,730,187
|
|
10,971,097
|
|
|
|
|
|
|
|
|
Homebuilding costs
and expenses:
|
|
|
|
|
|
|
|
Costs of homes
sold
|
5,610,783
|
|
4,421,373
|
|
9,795,647
|
|
8,088,235
|
Costs of land
sold
|
7,815
|
|
32,979
|
|
36,371
|
|
74,167
|
Selling, general and
administrative
|
486,555
|
|
455,164
|
|
915,033
|
|
865,400
|
Total
homebuilding costs and expenses
|
6,105,153
|
|
4,909,516
|
|
10,747,051
|
|
9,027,802
|
Homebuilding net
margins
|
1,872,829
|
|
1,118,525
|
|
2,983,136
|
|
1,943,295
|
Homebuilding equity in
earnings (loss) from unconsolidated entities
|
4,862
|
|
(1,688)
|
|
4,576
|
|
(6,253)
|
Homebuilding other
income (expense), net
|
2,720
|
|
(4,362)
|
|
2,549
|
|
8,613
|
Homebuilding
operating earnings
|
$
1,880,411
|
|
1,112,475
|
|
2,990,261
|
|
1,945,655
|
|
|
|
|
|
|
|
|
Financial Services
revenues
|
$
200,166
|
|
218,747
|
|
376,867
|
|
462,816
|
Financial Services
costs and expenses
|
96,231
|
|
97,427
|
|
182,141
|
|
195,289
|
Financial Services
operating earnings
|
$
103,935
|
|
121,320
|
|
194,726
|
|
267,527
|
|
|
|
|
|
|
|
|
Multifamily
revenues
|
$
176,021
|
|
177,473
|
|
443,380
|
|
308,916
|
Multifamily costs and
expenses
|
175,152
|
|
168,930
|
|
438,889
|
|
299,979
|
Multifamily equity in
earnings (loss) from unconsolidated entities and other
gain
|
(201)
|
|
13,854
|
|
1,604
|
|
12,586
|
Multifamily
operating earnings
|
$
668
|
|
22,397
|
|
6,095
|
|
21,523
|
|
|
|
|
|
|
|
|
Lennar Other
revenues
|
$
4,527
|
|
5,984
|
|
11,778
|
|
12,884
|
Lennar Other costs and
expenses
|
8,236
|
|
5,732
|
|
13,643
|
|
9,984
|
Lennar Other equity in
earnings (loss) from unconsolidated entities, other income
(expense), net, and other gain (loss) (1)
|
(26,750)
|
|
218,276
|
|
(36,558)
|
|
217,229
|
Lennar Other unrealized
gain (loss) from technology investments (2)
|
(77,965)
|
|
(272,625)
|
|
(473,135)
|
|
197,120
|
Lennar Other
operating earnings (loss)
|
$
(108,424)
|
|
(54,097)
|
|
(511,558)
|
|
417,249
|
|
|
(1)
|
During both the three
and six months ended May 31, 2021, the Company realized a gain of
$151.5 million on the sale of its residential solar
business.
|
(2)
|
The following is a
detail of Lennar Other unrealized gain (loss) from technology
investments:
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
May
31,
|
|
May
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Blend Labs (BLND)
mark-to-market
|
$
(13,550)
|
|
—
|
|
(20,992)
|
|
—
|
Hippo (HIPO)
mark-to-market
|
(37,946)
|
|
—
|
|
(162,403)
|
|
—
|
Opendoor (OPEN)
mark-to-market
|
(20,999)
|
|
(234,290)
|
|
(164,360)
|
|
235,455
|
SmartRent (SMRT)
mark-to-market
|
(3,950)
|
|
—
|
|
(48,313)
|
|
—
|
Sonder (SOND)
mark-to-market
|
(1,626)
|
|
—
|
|
(2,132)
|
|
—
|
Sunnova (NOVA)
mark-to-market
|
106
|
|
(38,335)
|
|
(74,935)
|
|
(38,335)
|
|
$
(77,965)
|
|
(272,625)
|
|
(473,135)
|
|
197,120
|
LENNAR CORPORATION
AND SUBSIDIARIES Summary of Deliveries, New Orders and
Backlog
(Dollars in thousands, except average sales price)
(unaudited)
|
Lennar's reportable homebuilding segments and all other
homebuilding operations not required to be reported separately have
divisions located in:
East: Alabama, Florida, New
Jersey, Pennsylvania and
South Carolina
Central: Georgia, Illinois, Indiana, Maryland, Minnesota, North
Carolina, Tennessee and
Virginia
Texas: Texas
West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah
and Washington
Other: Urban divisions
|
For the Three Months
Ended May 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Deliveries:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
5,198
|
|
4,480
|
|
$
2,225,725
|
|
1,560,934
|
|
$ 428,000
|
|
348,000
|
Central
|
2,944
|
|
2,761
|
|
1,283,763
|
|
1,093,190
|
|
436,000
|
|
396,000
|
Texas
|
3,288
|
|
2,747
|
|
1,093,533
|
|
790,391
|
|
333,000
|
|
288,000
|
West
|
5,110
|
|
4,502
|
|
3,367,261
|
|
2,543,263
|
|
659,000
|
|
565,000
|
Other
|
9
|
|
3
|
|
9,159
|
|
2,857
|
|
1,018,000
|
|
952,000
|
Total
|
16,549
|
|
14,493
|
|
$
7,979,441
|
|
5,990,635
|
|
$ 483,000
|
|
414,000
|
Of the total homes delivered listed above, 44 homes with a
dollar value of $15.8 million and an
average sales price of $358,000
represent home deliveries from unconsolidated entities for the
three months ended May 31, 2022,
compared to 31 home deliveries with a dollar value of $9.9 million and an average sales price of
$319,000 for the three months ended
May 31, 2021.
|
At May
31,
|
|
For the Three Months
Ended May 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
New
Orders:
|
Active
Communities
|
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
354
|
|
351
|
|
5,973
|
|
5,351
|
|
$
2,753,770
|
|
1,987,929
|
|
$ 461,000
|
|
372,000
|
Central
|
315
|
|
297
|
|
3,576
|
|
3,416
|
|
1,663,354
|
|
1,399,730
|
|
465,000
|
|
410,000
|
Texas
|
205
|
|
232
|
|
3,375
|
|
3,250
|
|
1,189,263
|
|
1,000,013
|
|
352,000
|
|
308,000
|
West
|
348
|
|
342
|
|
4,858
|
|
5,135
|
|
3,482,679
|
|
3,172,569
|
|
717,000
|
|
618,000
|
Other
|
3
|
|
3
|
|
10
|
|
5
|
|
9,203
|
|
5,146
|
|
920,000
|
|
1,029,000
|
Total
|
1,225
|
|
1,225
|
|
17,792
|
|
17,157
|
|
$
9,098,269
|
|
7,565,387
|
|
$ 511,000
|
|
441,000
|
Of the total homes listed above, 60 homes with a dollar value of
$30.8 million and an average sales
price of $514,000 represent homes in
seven active communities from unconsolidated entities for the three
months ended May 31, 2022, compared
to 32 homes with a dollar value of $9.9
million and an average sales price of $373,000 in four active communities for the three
months ended May 31, 2021.
|
For the Six Months
Ended May 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Deliveries:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
9,280
|
|
8,400
|
|
$
3,898,097
|
|
2,912,235
|
|
$ 420,000
|
|
347,000
|
Central
|
5,465
|
|
5,180
|
|
2,389,692
|
|
2,019,628
|
|
437,000
|
|
390,000
|
Texas
|
5,825
|
|
5,096
|
|
1,899,163
|
|
1,426,802
|
|
326,000
|
|
280,000
|
West
|
8,502
|
|
8,124
|
|
5,509,465
|
|
4,520,071
|
|
648,000
|
|
556,000
|
Other
|
15
|
|
7
|
|
14,161
|
|
6,504
|
|
944,000
|
|
929,000
|
Total
|
29,087
|
|
26,807
|
|
$
13,710,578
|
|
10,885,240
|
|
$ 472,000
|
|
406,000
|
Of the total homes delivered listed above, 69 homes with a
dollar value of $25.1 million and an
average sales price of $364,000
represent home deliveries from unconsolidated entities for the six
months ended May 31, 2022, compared
to 43 home deliveries with a dollar value of $13.6 million and an average sales price of
$316,000 for the six months ended
May 31, 2021.
|
For the Six Months
Ended May 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
New
Orders:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
10,883
|
|
10,165
|
|
$
4,886,826
|
|
3,688,041
|
|
$ 449,000
|
|
363,000
|
Central
|
6,688
|
|
6,742
|
|
3,065,492
|
|
2,733,356
|
|
458,000
|
|
405,000
|
Texas
|
6,141
|
|
6,025
|
|
2,111,048
|
|
1,812,182
|
|
344,000
|
|
301,000
|
West
|
9,812
|
|
9,787
|
|
6,818,611
|
|
5,864,964
|
|
695,000
|
|
599,000
|
Other
|
15
|
|
8
|
|
13,831
|
|
8,121
|
|
922,000
|
|
1,015,000
|
Total
|
33,539
|
|
32,727
|
|
$
16,895,808
|
|
14,106,664
|
|
$ 504,000
|
|
431,000
|
Of the total new orders listed above, 104 homes with a dollar
value of $48.2 million and an average
sales price of $463,000 represent new
orders from unconsolidated entities for the six months ended
May 31, 2022, compared to 67 new
orders with a dollar value of $23.5
million and an average sales price of $351,000 for the six months ended May 31, 2021.
|
May
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Backlog:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
9,882
|
|
7,778
|
|
$
4,566,295
|
|
3,086,740
|
|
$ 462,000
|
|
397,000
|
Central
|
6,381
|
|
5,933
|
|
3,010,596
|
|
2,475,900
|
|
472,000
|
|
417,000
|
Texas
|
4,582
|
|
3,752
|
|
1,665,155
|
|
1,209,965
|
|
363,000
|
|
322,000
|
West
|
7,775
|
|
7,275
|
|
5,444,307
|
|
4,258,324
|
|
700,000
|
|
585,000
|
Other
|
4
|
|
3
|
|
3,611
|
|
3,465
|
|
903,000
|
|
1,155,000
|
Total
|
28,624
|
|
24,741
|
|
$
14,689,964
|
|
11,034,394
|
|
$ 513,000
|
|
446,000
|
Of the total homes in backlog listed above, 114 homes with a
backlog dollar value of $51.7 million
and an average sales price of $453,000 represent the backlog from
unconsolidated entities at May 31,
2022, compared to 62 homes with a backlog dollar value of
$21.4 million and an average sales
price of $345,000 at May 31, 2021. During the six months ended
May 31, 2022, the Company acquired
347 homes and 54 homes in backlog in the East and Central
Homebuilding segment, respectively.
LENNAR CORPORATION
AND SUBSIDIARIES Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
|
|
|
May
31,
|
|
November
30,
|
|
2022
|
|
2021
|
|
(unaudited)
|
|
(audited)
|
ASSETS
|
|
|
|
Homebuilding:
|
|
|
|
Cash and cash
equivalents
|
$
1,314,741
|
|
2,735,213
|
Restricted
cash
|
28,440
|
|
21,927
|
Receivables,
net
|
508,638
|
|
490,278
|
Inventories:
|
|
|
|
Finished homes
and construction in progress
|
12,811,985
|
|
10,446,139
|
Land and land
under development
|
7,590,237
|
|
7,108,142
|
Consolidated
inventory not owned
|
1,687,277
|
|
1,161,023
|
Total
inventories
|
22,089,499
|
|
18,715,304
|
Investments in
unconsolidated entities
|
1,083,813
|
|
972,084
|
Goodwill
|
3,442,359
|
|
3,442,359
|
Other
assets
|
1,226,192
|
|
1,090,654
|
|
29,693,682
|
|
27,467,819
|
Financial
Services
|
2,359,675
|
|
2,964,367
|
Multifamily
|
1,277,607
|
|
1,311,747
|
Lennar
Other
|
975,238
|
|
1,463,845
|
Total
assets
|
$
34,306,202
|
|
33,207,778
|
LIABILITIES AND
EQUITY
|
|
|
|
Homebuilding:
|
|
|
|
Accounts
payable
|
$
1,555,283
|
|
1,321,247
|
Liabilities related to
consolidated inventory not owned
|
1,414,663
|
|
976,602
|
Senior notes and other
debts payable, net
|
4,645,791
|
|
4,652,338
|
Other
liabilities
|
2,997,475
|
|
2,920,055
|
|
10,613,212
|
|
9,870,242
|
Financial
Services
|
1,470,688
|
|
1,906,343
|
Multifamily
|
323,799
|
|
288,930
|
Lennar
Other
|
108,729
|
|
145,981
|
Total
liabilities
|
12,516,428
|
|
12,211,496
|
Stockholders'
equity:
|
|
|
|
Class A common stock
of $0.10 par value
|
25,582
|
|
30,050
|
Class B common stock
of $0.10 par value
|
3,660
|
|
3,944
|
Additional paid-in
capital
|
5,355,182
|
|
8,807,891
|
Retained
earnings
|
16,288,698
|
|
14,685,329
|
Treasury
stock
|
(76,615)
|
|
(2,709,448)
|
Accumulated other
comprehensive income (loss)
|
1,748
|
|
(1,341)
|
Total stockholders'
equity
|
21,598,255
|
|
20,816,425
|
Noncontrolling
interests
|
191,519
|
|
179,857
|
Total
equity
|
21,789,774
|
|
20,996,282
|
Total liabilities
and equity
|
$
34,306,202
|
|
33,207,778
|
LENNAR CORPORATION
AND SUBSIDIARIES Supplemental Data
(Dollars in thousands)
(unaudited)
|
|
|
May
31,
|
|
November
30,
|
|
May
31,
|
|
2022
|
|
2021
|
|
2021
|
Homebuilding
debt
|
$ 4,645,791
|
|
4,652,338
|
|
5,894,342
|
Stockholders'
equity
|
21,598,255
|
|
20,816,425
|
|
19,576,108
|
Total
capital
|
$
26,244,046
|
|
25,468,763
|
|
25,470,450
|
Homebuilding debt to
total capital
|
17.7 %
|
|
18.3 %
|
|
23.1 %
|
|
|
|
|
|
|
Homebuilding
debt
|
$ 4,645,791
|
|
4,652,338
|
|
5,894,342
|
Less: Homebuilding cash
and cash equivalents
|
1,314,741
|
|
2,735,213
|
|
2,581,583
|
Net homebuilding
debt
|
$ 3,331,050
|
|
1,917,125
|
|
3,312,759
|
Net homebuilding
debt to total capital (1)
|
13.4 %
|
|
8.4 %
|
|
14.5 %
|
|
|
(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.
|
Contact:
Allison Bober
Investor Relations
Lennar Corporation
(305) 485-2038
View original
content:https://www.prnewswire.com/news-releases/lennar-reports-second-quarter-2022-results-301571651.html
SOURCE Lennar Corporation