Third Quarter 2022 Highlights - comparisons to the prior year
quarter
- Net earnings per diluted share increased 11% to $5.03
-
- Increased 58% to $5.18, excluding
mark-to-market gains (losses) on technology investments and
one-time items
- Net earnings increased 4% to $1.47
billion
-
- Increased 48% to $1.51 billion,
excluding mark-to-market gains (losses) on technology investments
and one-time items
- Deliveries increased 13% to 17,248 homes
- New orders decreased 12% to 14,366 homes; new orders dollar
value decreased 11% to $6.7
billion
- Backlog of 25,734 homes - consistent with prior year; backlog
dollar value increased 8% to $12.9
billion
- Total revenues increased 29% to $8.9
billion
- Homebuilding operating earnings increased to $2.0 billion, compared to operating earnings of
$1.3 billion
-
- Gross margin on home sales improved 190 basis points ("bps") to
29.2%
- S,G&A expenses as a % of revenues from home sales improved
120 bps to 5.8%
- Net margin on home sales improved 320 bps to 23.5%
- Financial Services operating earnings of $63.0 million (including a $35.5 million one-time charge), compared to
operating earnings of $111.9
million
- Multifamily operating earnings of $45.9
million, compared to operating loss of $9.4 million
- Lennar Other operating loss of $118.0
million, compared to operating earnings of $492.0 million
- Homebuilding cash and cash equivalents of $1.3 billion
- Controlled homesites increased to 63%, compared to 53%
- No outstanding borrowings under the Company's $2.575 billion revolving credit facility
- Retired $575 million of
homebuilding senior notes due November
2022
- Homebuilding debt to total capital improved to 15.0%, compared
to 21.2%
MIAMI, Sept. 21,
2022 /PRNewswire/ -- Lennar Corporation (NYSE: LEN
and LEN.B), one of the nation's leading homebuilders,
today reported results for its third quarter ended August 31, 2022. Third quarter net earnings
attributable to Lennar in 2022 were $1.5
billion, or $5.03 per diluted
share, compared to third quarter net earnings attributable to
Lennar in 2021 of $1.4 billion, or
$4.52 per diluted share. Excluding
mark-to-market gains (losses) on technology investments in both
years and one-time items in the current year, third quarter net
earnings attributable to Lennar in 2022 were $1.5 billion, or $5.18 per diluted share, compared to third
quarter net earnings attributable to Lennar in 2021 of $1.0 billion, or $3.27 per diluted share.
Stuart Miller, Executive Chairman
of Lennar, said, "At this evolving time in the market, we are
pleased to report third quarter earnings of $1.5 billion, or $5.03 per diluted share, compared to $1.4 billion, or $4.52 per diluted share for the third quarter
last year. Excluding mark-to-market gains (losses) on our
technology investments and one-time items, third quarter earnings
were $1.5 billion, or $5.18 per diluted share, compared to $1.0 billion, or $3.27 per diluted share for the third quarter
last year, a 48% and 58% increase year over year,
respectively."
Mr. Miller continued, "Our home deliveries were 17,248, up 13%
over last year, and in line with our guidance estimate given at the
beginning of the quarter, and we achieved a homebuilding gross
margin of 29.2% and homebuilding S,G&A expenses of 5.8%,
leading to a 23.5% net margin, even as materials and labor costs
increased. Supply chain constraints, while improving, still
continue to limit deliveries."
"While our new orders declined 12% compared to last year's third
quarter, we continued to maintain a consistent starts pace and
drive sales by adjusting pricing and incentives. Sales have clearly
been impacted by rising interest rates, but there remains a
significant national shortage of housing, especially workforce
housing, and demand remains strong as we navigate the rebalance
between price and interest rates."
"Accordingly, during the quarter, we continued to focus on
pricing to market and rightsizing our inventory to generate
significant cash flow. We are focused on balance sheet strength as
we retired early $575 million of
homebuilding senior notes due November
2022, ended the quarter with $1.3
billion in cash, had no borrowings on our $2.6 billion revolver and homebuilding debt to
capital of 15.0%, the lowest in our history. 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, "Much of our balance
sheet and inventory management progress was driven by an intense
focus on our land strategy while simultaneously driving sales,
deliveries and managing production. During the quarter, we
reassessed every deal in our land pipeline and worked with our
strong land relationships to improve the underwriting on many
deals. Our ending community count for the quarter decreased
slightly from the second quarter, but is expected to increase
approximately 5% by year end. We also continued to make significant
progress on our land light strategy. This was evidenced by our
controlled homesite percentage increasing to 63% from 53% and our
years owned supply of homesites improving to 2.9 years from 3.3
years year over year."
Jon Jaffe, Co-Chief Executive
Officer and Co-President of Lennar, said, "During the quarter, our
homebuilding machine continued to be intensely focused on carefully
managing production. Our cycle time during the quarter was
marginally down sequentially, indicating that the well documented
supply chain issues that continue to limit our productivity are
beginning to become more manageable and perhaps subside. Our
quarterly starts and sales pace were 4.4 homes and 4.0 homes per
community, respectively, and we ended the third quarter with
approximately 500 completed, unsold homes, demonstrating our focus
on inventory management."
Mr. Miller concluded, "As we have seen over the past quarters,
interest rates are moving and likely to continue to move, and the
housing market will continue to rebalance pricing and interest
rates in order to meet demand. Therefore, for our fourth quarter,
we will give broad boundaries for deliveries between 20,000 to
21,000 homes and boundaries for gross margins between 26.0% –
27.0%. We continue to fortify our balance sheet with significant
liquidity and operate from a position of strength, enabling us to
continue to execute on our core strategies and outperform in
periods of uncertainty."
RESULTS OF OPERATIONS
THREE MONTHS ENDED AUGUST 31, 2022 COMPARED TO
THREE
MONTHS ENDED AUGUST 31, 2021
Homebuilding
Revenues from home sales increased 30% in the third quarter of
2022 to $8.4 billion from
$6.5 billion in the third quarter of
2021. Revenues were higher primarily due to a 13% increase in the
number of home deliveries to 17,248 homes from 15,199 homes
and a 15% increase in the average sales price to $491,000 from $428,000.
Gross margins on home sales were $2.5
billion, or 29.2%, in the third quarter of 2022, compared to
$1.8 billion, or 27.3%, in the third
quarter of 2021. During the third quarter of 2022, an increase in
revenues per square foot was offset by an increase in costs per
square foot primarily due to higher materials 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 $485.9 million in the third quarter of 2022,
compared to $453.7 million in the
third quarter of 2021. As a percentage of revenues from home sales,
selling, general and administrative expenses improved to 5.8% in
the third quarter of 2022, from 7.0% in the third quarter of 2021.
This was the lowest percentage for any 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
$63.0 million in the third quarter of
2022. The operating earnings included a $35.5 million one-time charge due to an increase
in a litigation accrual related to a court judgment. The Company is
appealing this judgment since it believes there were clear errors
of law made by the trial court. Excluding this one-time charge,
operating earnings were $98.5
million, compared to operating earnings of $111.9 million in the third 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.
Other Ancillary Businesses
Operating earnings for the Multifamily segment were $48.5 million ($45.9
million net of noncontrolling interests) in the third
quarter of 2022, compared to an operating loss of $9.4 million in the third quarter of 2021.
Operating loss for the Lennar Other segment was $118.0 million in the third quarter of 2022,
compared to operating earnings of $492.0
million in the third quarter of 2021. Lennar Other operating
loss in the third quarter of 2022 was primarily due to
mark-to-market losses on the Company's publicly traded technology
investments. Lennar Other operating earnings in the third quarter
of 2021 were primarily due to mark-to-market gains on the Company's
publicly traded technology investments.
RESULTS OF OPERATIONS
NINE MONTHS ENDED AUGUST 31, 2022 COMPARED TO
NINE MONTHS
ENDED AUGUST 31, 2021
Homebuilding
Revenues from home sales increased 27% in the nine months ended
August 31, 2022 to $22.1 billion from $17.4
billion in the nine months ended August 31, 2021. Revenues were higher primarily
due to a 10% increase in the number of home deliveries to 46,335
from 42,006 and a 16% increase in the average sales price to
$479,000 from $414,000.
Gross margins on home sales were $6.4
billion, or 28.7%, in the nine months ended August 31, 2022, compared to $4.6 billion, or 26.2%, in the nine months ended
August 31, 2021. During the nine
months ended August 31, 2022, an
increase in revenues per square foot was offset by an increase in
costs per square foot primarily due to higher materials 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 $1.4 billion in the nine months ended
August 31, 2022, compared to
$1.3 billion in the nine months ended
August 31, 2021. As a percentage of
revenues from home sales, selling, general and administrative
expenses improved to 6.3% in the nine months ended August 31, 2022, from 7.6% in the nine months
ended August 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
$257.1 million in the nine months
ended August 31, 2022. The operating
earnings included a $35.5 million one-time charge due to an
increase in a litigation accrual related to a court
judgment. Excluding this one-time charge, operating earnings
were $292.6 million, compared to
operating earnings of $379.3 million
in the nine months ended August 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 $54.6 million ($52.0
million net of noncontrolling interests) in the nine months
ended August 31, 2022, compared to
operating earnings of $12.1 million
in the nine months ended August 31,
2021. Operating loss for the Lennar Other segment was
$629.5 million in the nine months
ended August 31, 2022, compared to
operating earnings of $909.2 million
in the nine months ended August 31,
2021. Lennar Other operating loss for the nine months ended
August 31, 2022 was primarily due to
mark-to-market losses on the Company's publicly traded technology
investments. The operating earnings for the nine months ended
August 31, 2021 were primarily due to
mark-to-market gains on the Company's publicly traded technology
investments and the gain on the sale of its solar business to
Sunnova.
Tax Rate
For the three months ended August 31,
2022 and 2021, the Company had a tax provision of
$351.6 million and $405.1 million, respectively, which resulted in
an overall effective income tax rate of 19.3% and 22.4%,
respectively. The Company's overall effective income tax rate was
lower in the third quarter of 2022 primarily due to the resolution
of an uncertain state tax position and the retroactive
reinstatement of the energy efficient home credits for 2022,
resulting from the passage of the Inflation Reduction Act by
Congress. These one-time items also had a favorable impact for the
nine months ended August 31, 2022.
For the nine months ended August 31,
2022 and 2021, the Company had a tax provision of
$951.3 million and $975.4 million, respectively, which resulted in
an overall effective income tax rate of 22.4% and 23.1%,
respectively.
Share Repurchases
For the nine months ended August 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.
Debt Transaction
In August 2022, the Company
retired $575 million aggregate principal amount of its 4.75%
senior notes due November 2022. The
redemption price, which was paid in cash, was 100% of the principal
amount plus accrued but unpaid interest.
Liquidity
At August 31, 2022, the Company had $1.3 billion of Homebuilding cash and cash
equivalents and no outstanding 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 fourth
quarter of 2022:
New Orders
|
14,000 -
15,500
|
Deliveries
|
20,000 -
21,000
|
Average Sales
Price
|
$475,000 -
$480,000
|
Gross Margin % on Home
Sales
|
26.0% -
27.0%
|
S,G&A as a % of
Home Sales
|
5.7% -
5.9%
|
Financial Services
Operating Earnings
|
$50 million - $60
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; the potential
impact of inflation; 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; the effect of increased interest rates with regard to our
fund's borrowings on the willingness of the funds to invest in new
projects; 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 third quarter
earnings will be held at 11:00 a.m. Eastern
Time on Thursday, September 22, 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 203-369-3041 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
|
|
Nine Months
Ended
|
|
August
31,
|
|
August
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenues:
|
|
|
|
|
|
|
|
Homebuilding
|
$
8,479,496
|
|
6,558,509
|
|
22,209,683
|
|
17,529,606
|
Financial
Services
|
202,078
|
|
206,973
|
|
578,945
|
|
669,789
|
Multifamily
|
243,056
|
|
167,921
|
|
686,436
|
|
476,837
|
Lennar
Other
|
9,801
|
|
8,000
|
|
21,579
|
|
20,884
|
Total
revenues
|
$
8,934,431
|
|
6,941,403
|
|
23,496,643
|
|
18,697,116
|
|
|
|
|
|
|
|
|
Homebuilding operating
earnings
|
$
1,963,224
|
|
1,329,833
|
|
4,953,485
|
|
3,275,488
|
Financial Services
operating earnings
|
63,348
|
|
112,083
|
|
258,074
|
|
379,610
|
Multifamily operating
earnings (loss)
|
48,487
|
|
(9,393)
|
|
54,582
|
|
12,130
|
Lennar Other operating
earnings (loss)
|
(117,980)
|
|
491,972
|
|
(629,538)
|
|
909,221
|
Corporate general and
administrative expenses
|
(115,557)
|
|
(94,942)
|
|
(334,425)
|
|
(296,190)
|
Charitable foundation
contribution
|
(17,248)
|
|
(15,199)
|
|
(46,335)
|
|
(42,006)
|
Earnings before income
taxes
|
1,824,274
|
|
1,814,354
|
|
4,255,843
|
|
4,238,253
|
Provision for income
taxes
|
(351,580)
|
|
(405,136)
|
|
(951,276)
|
|
(975,354)
|
Net earnings
(including net earnings attributable to
noncontrolling interests)
|
1,472,694
|
|
1,409,218
|
|
3,304,567
|
|
3,262,899
|
Less: Net earnings
attributable to noncontrolling interests
|
5,350
|
|
2,330
|
|
12,886
|
|
23,279
|
Net earnings
attributable to Lennar
|
$
1,467,344
|
|
1,406,888
|
|
3,291,681
|
|
3,239,620
|
|
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
288,109
|
|
307,296
|
|
290,645
|
|
308,403
|
Diluted
|
288,109
|
|
307,296
|
|
290,645
|
|
308,403
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
5.04
|
|
4.52
|
|
11.19
|
|
10.37
|
Diluted
|
$
5.03
|
|
4.52
|
|
11.18
|
|
10.36
|
|
|
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
|
|
|
Interest incurred
(1)
|
$
59,137
|
|
68,059
|
|
180,869
|
|
210,575
|
|
|
|
|
|
|
|
|
EBIT
(2):
|
|
|
|
|
|
|
|
Net earnings
attributable to Lennar
|
$
1,467,344
|
|
1,406,888
|
|
3,291,681
|
|
3,239,620
|
Provision for income
taxes
|
351,580
|
|
405,136
|
|
951,276
|
|
975,354
|
Interest expense
included in:
|
|
|
|
|
|
|
|
Costs of homes
sold
|
74,358
|
|
85,180
|
|
212,125
|
|
248,888
|
Costs of land
sold
|
155
|
|
1,093
|
|
358
|
|
2,285
|
Homebuilding other
expense, net
|
4,655
|
|
4,928
|
|
15,229
|
|
15,128
|
Total interest
expense
|
79,168
|
|
91,201
|
|
227,712
|
|
266,301
|
EBIT
|
$
1,898,092
|
|
1,903,225
|
|
4,470,669
|
|
4,481,275
|
|
|
(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
|
|
Nine Months
Ended
|
|
August
31,
|
|
August
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Homebuilding
revenues:
|
|
|
|
|
|
|
|
Sales of
homes
|
$
8,439,125
|
|
6,505,708
|
|
22,124,565
|
|
17,377,353
|
Sales of
land
|
32,397
|
|
45,055
|
|
63,888
|
|
131,483
|
Other
homebuilding
|
7,974
|
|
7,746
|
|
21,230
|
|
20,770
|
Total homebuilding
revenues
|
8,479,496
|
|
6,558,509
|
|
22,209,683
|
|
17,529,606
|
|
|
|
|
|
|
|
|
Homebuilding costs
and expenses:
|
|
|
|
|
|
|
|
Costs of homes
sold
|
5,973,889
|
|
4,732,403
|
|
15,769,536
|
|
12,820,638
|
Costs of land
sold
|
34,994
|
|
39,378
|
|
71,365
|
|
113,545
|
Selling, general and
administrative
|
485,854
|
|
453,716
|
|
1,400,887
|
|
1,319,116
|
Total homebuilding
costs and expenses
|
6,494,737
|
|
5,225,497
|
|
17,241,788
|
|
14,253,299
|
Homebuilding net
margins
|
1,984,759
|
|
1,333,012
|
|
4,967,895
|
|
3,276,307
|
Homebuilding equity in
earnings (loss) from unconsolidated entities
|
(14,652)
|
|
2,391
|
|
(10,076)
|
|
(3,862)
|
Homebuilding other
income (expense), net
|
(6,883)
|
|
(5,570)
|
|
(4,334)
|
|
3,043
|
Homebuilding
operating earnings
|
$
1,963,224
|
|
1,329,833
|
|
4,953,485
|
|
3,275,488
|
|
|
|
|
|
|
|
|
Financial Services
revenues
|
$
202,078
|
|
206,973
|
|
578,945
|
|
669,789
|
Financial Services
costs and expenses
|
138,730
|
|
94,890
|
|
320,871
|
|
290,179
|
Financial Services
operating earnings
|
$
63,348
|
|
112,083
|
|
258,074
|
|
379,610
|
|
|
|
|
|
|
|
|
Multifamily
revenues
|
$
243,056
|
|
167,921
|
|
686,436
|
|
476,837
|
Multifamily costs and
expenses
|
215,433
|
|
174,410
|
|
654,322
|
|
474,389
|
Multifamily equity in
earnings (loss) from unconsolidated entities
and other gain
|
20,864
|
|
(2,904)
|
|
22,468
|
|
9,682
|
Multifamily
operating earnings (loss)
|
$
48,487
|
|
(9,393)
|
|
54,582
|
|
12,130
|
|
|
|
|
|
|
|
|
Lennar Other
revenues
|
$
9,801
|
|
8,000
|
|
21,579
|
|
20,884
|
Lennar Other costs and
expenses
|
10,007
|
|
9,010
|
|
23,650
|
|
18,994
|
Lennar Other equity in
earnings (loss) from unconsolidated entities,
other income (expense), net, and other gain (loss)
(1)
|
(31,935)
|
|
(689)
|
|
(68,493)
|
|
216,540
|
Lennar Other unrealized
gain (loss) from technology investments (2)
|
(85,839)
|
|
493,671
|
|
(558,974)
|
|
690,791
|
Lennar Other
operating earnings (loss)
|
$
(117,980)
|
|
491,972
|
|
(629,538)
|
|
909,221
|
|
|
(1)
|
During the nine months
ended August 31, 2021, the Company realized a gain of $153 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
|
|
Nine Months
Ended
|
|
August
31,
|
|
August
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Blend Labs (BLND)
mark-to-market
|
$
(518)
|
|
6,852
|
|
(21,510)
|
|
6,852
|
Hippo (HIPO)
mark-to-market
|
(32,933)
|
|
324,855
|
|
(195,336)
|
|
324,855
|
Opendoor (OPEN)
mark-to-market
|
(54,391)
|
|
37,301
|
|
(218,751)
|
|
272,756
|
SmartRent (SMRT)
mark-to-market
|
(23,118)
|
|
100,793
|
|
(71,431)
|
|
100,793
|
Sonder (SOND)
mark-to-market
|
(168)
|
|
—
|
|
(2,300)
|
|
—
|
Sunnova (NOVA)
mark-to-market
|
25,289
|
|
23,870
|
|
(49,646)
|
|
(14,465)
|
|
$
(85,839)
|
|
493,671
|
|
(558,974)
|
|
690,791
|
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 August 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Deliveries:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
5,647
|
|
4,568
|
|
$
2,538,479
|
|
1,660,357
|
|
$ 450,000
|
|
363,000
|
Central
|
3,501
|
|
3,211
|
|
1,566,610
|
|
1,262,540
|
|
447,000
|
|
393,000
|
Texas
|
3,447
|
|
2,747
|
|
1,138,901
|
|
818,869
|
|
330,000
|
|
298,000
|
West
|
4,649
|
|
4,669
|
|
3,208,713
|
|
2,764,856
|
|
690,000
|
|
592,000
|
Other
|
4
|
|
4
|
|
3,655
|
|
4,141
|
|
914,000
|
|
1,035,000
|
Total
|
17,248
|
|
15,199
|
|
$
8,456,358
|
|
6,510,763
|
|
$ 491,000
|
|
428,000
|
Of the total homes delivered listed above, 46 homes with a
dollar value of $17.2 million and an
average sales price of $375,000
represent home deliveries from unconsolidated entities for the
three months ended August 31, 2022,
compared to 15 home deliveries with a dollar value of
$5.1 million and an average sales
price of $337,000 for the three
months ended August 31, 2021.
|
At August
31,
|
|
For the Three
Months Ended August 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
New
Orders:
|
Active
Communities
|
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
328
|
|
329
|
|
5,675
|
|
5,308
|
|
$
2,514,776
|
|
2,100,466
|
|
$ 443,000
|
|
396,000
|
Central
|
296
|
|
281
|
|
3,033
|
|
3,189
|
|
1,348,226
|
|
1,352,814
|
|
445,000
|
|
424,000
|
Texas
|
217
|
|
233
|
|
2,577
|
|
3,203
|
|
776,156
|
|
988,644
|
|
301,000
|
|
309,000
|
West
|
345
|
|
350
|
|
3,077
|
|
4,571
|
|
2,015,897
|
|
3,006,501
|
|
655,000
|
|
658,000
|
Other
|
3
|
|
3
|
|
4
|
|
6
|
|
2,668
|
|
5,974
|
|
667,000
|
|
996,000
|
Total
|
1,189
|
|
1,196
|
|
14,366
|
|
16,277
|
|
$
6,657,723
|
|
7,454,399
|
|
$ 463,000
|
|
458,000
|
Of the total homes listed above, 79 homes with a dollar value of
$39.4 million and an average sales
price of $499,000 represent homes in
seven active communities from unconsolidated entities for the three
months ended August 31, 2022,
compared to 35 homes with a dollar value of $13.1 million and an average sales price of
$375,000 in four active communities
for the three months ended August 31,
2021.
|
For the Nine
Months Ended August 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Deliveries:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
14,927
|
|
12,968
|
|
$
6,436,576
|
|
4,572,592
|
|
$ 431,000
|
|
353,000
|
Central
|
8,966
|
|
8,391
|
|
3,956,302
|
|
3,282,168
|
|
441,000
|
|
391,000
|
Texas
|
9,272
|
|
7,843
|
|
3,038,064
|
|
2,245,671
|
|
328,000
|
|
286,000
|
West
|
13,151
|
|
12,793
|
|
8,718,178
|
|
7,284,927
|
|
663,000
|
|
569,000
|
Other
|
19
|
|
11
|
|
17,816
|
|
10,645
|
|
938,000
|
|
968,000
|
Total
|
46,335
|
|
42,006
|
|
$
22,166,936
|
|
17,396,003
|
|
$ 479,000
|
|
414,000
|
Of the total homes delivered listed above, 115 homes with a
dollar value of $42.4 million and an
average sales price of $368,000
represent home deliveries from unconsolidated entities for the nine
months ended August 31, 2022,
compared to 58 home deliveries with a dollar value of
$18.7 million and an average sales
price of $322,000 for the nine months
ended August 31, 2021.
|
For the Nine
Months Ended August 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
New
Orders:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
16,558
|
|
15,473
|
|
$
7,401,602
|
|
5,788,506
|
|
$ 447,000
|
|
374,000
|
Central
|
9,721
|
|
9,931
|
|
4,413,718
|
|
4,086,170
|
|
454,000
|
|
411,000
|
Texas
|
8,718
|
|
9,228
|
|
2,887,204
|
|
2,800,826
|
|
331,000
|
|
304,000
|
West
|
12,889
|
|
14,358
|
|
8,834,508
|
|
8,871,465
|
|
685,000
|
|
618,000
|
Other
|
19
|
|
14
|
|
16,499
|
|
14,095
|
|
868,000
|
|
1,007,000
|
Total
|
47,905
|
|
49,004
|
|
$
23,553,531
|
|
21,561,062
|
|
$ 492,000
|
|
440,000
|
Of the total new orders listed above, 183 homes with a dollar
value of $87.5 million and an average
sales price of $478,000 represent new
orders from unconsolidated entities for the nine months ended
August 31, 2022, compared to 102 new
orders with a dollar value of $36.7
million and an average sales price of $359,000 for the nine months ended August 31, 2021.
|
August
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Backlog:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
9,903
|
|
8,518
|
|
$
4,538,997
|
|
3,526,849
|
|
$ 458,000
|
|
414,000
|
Central
|
5,912
|
|
5,911
|
|
2,791,899
|
|
2,566,174
|
|
472,000
|
|
434,000
|
Texas
|
3,712
|
|
4,208
|
|
1,302,409
|
|
1,379,740
|
|
351,000
|
|
328,000
|
West
|
6,203
|
|
7,177
|
|
4,251,491
|
|
4,499,969
|
|
685,000
|
|
627,000
|
Other
|
4
|
|
5
|
|
2,626
|
|
5,298
|
|
656,000
|
|
1,060,000
|
Total
|
25,734
|
|
25,819
|
|
$
12,887,422
|
|
11,978,030
|
|
$ 501,000
|
|
464,000
|
Of the total homes in backlog listed above, 147 homes with a
backlog dollar value of $73.8 million
and an average sales price of $502,000 represent the backlog from
unconsolidated entities at August 31,
2022, compared to 82 homes with a backlog dollar value of
$29.5 million and an average sales
price of $359,000 at August 31, 2021. During the nine months ended
August 31, 2022, the Company acquired
340 homes and 53 homes in backlog in the East and Central
Homebuilding segments, respectively.
LENNAR CORPORATION
AND SUBSIDIARIES
|
Condensed Consolidated
Balance Sheets
|
(In thousands, except
per share amounts)
|
(unaudited)
|
|
|
August
31,
|
|
November
30,
|
|
2022
|
|
2021
|
ASSETS
|
|
|
|
Homebuilding:
|
|
|
|
Cash and cash
equivalents
|
$
1,309,364
|
|
2,735,213
|
Restricted
cash
|
32,575
|
|
21,927
|
Receivables,
net
|
665,472
|
|
490,278
|
Inventories:
|
|
|
|
Finished homes and
construction in progress
|
13,043,631
|
|
10,446,139
|
Land and land under
development
|
7,849,160
|
|
7,108,142
|
Consolidated inventory
not owned
|
1,949,718
|
|
1,161,023
|
Total
inventories
|
22,842,509
|
|
18,715,304
|
Investments in
unconsolidated entities
|
1,174,498
|
|
972,084
|
Goodwill
|
3,442,359
|
|
3,442,359
|
Other
assets
|
1,163,519
|
|
1,090,654
|
|
30,630,296
|
|
27,467,819
|
Financial
Services
|
2,523,970
|
|
2,964,367
|
Multifamily
|
1,267,908
|
|
1,311,747
|
Lennar
Other
|
917,703
|
|
1,463,845
|
Total
assets
|
$
35,339,877
|
|
33,207,778
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Homebuilding:
|
|
|
|
Accounts
payable
|
$
1,552,583
|
|
1,321,247
|
Liabilities related to
consolidated inventory not owned
|
1,661,927
|
|
976,602
|
Senior notes and other
debts payable, net
|
4,057,496
|
|
4,652,338
|
Other
liabilities
|
2,836,442
|
|
2,920,055
|
|
10,108,448
|
|
9,870,242
|
Financial
Services
|
1,675,492
|
|
1,906,343
|
Multifamily
|
326,048
|
|
288,930
|
Lennar
Other
|
102,351
|
|
145,981
|
Total
liabilities
|
12,212,339
|
|
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
|
5,388,413
|
|
8,807,891
|
Retained
earnings
|
17,647,293
|
|
14,685,329
|
Treasury
stock
|
(89,760)
|
|
(2,709,448)
|
Accumulated other
comprehensive income (loss)
|
2,090
|
|
(1,341)
|
Total stockholders'
equity
|
22,977,278
|
|
20,816,425
|
Noncontrolling
interests
|
150,260
|
|
179,857
|
Total
equity
|
23,127,538
|
|
20,996,282
|
Total liabilities
and equity
|
$
35,339,877
|
|
33,207,778
|
LENNAR CORPORATION
AND SUBSIDIARIES
|
Supplemental
Data
|
(Dollars in
thousands)
|
(unaudited)
|
|
|
August
31,
|
|
November
30,
|
|
August
31,
|
|
2022
|
|
2021
|
|
2021
|
Homebuilding
debt
|
$ 4,057,496
|
|
4,652,338
|
|
5,542,513
|
Stockholders'
equity
|
22,977,278
|
|
20,816,425
|
|
20,650,188
|
Total
capital
|
$
27,034,774
|
|
25,468,763
|
|
26,192,701
|
Homebuilding debt to
total capital
|
15.0 %
|
|
18.3 %
|
|
21.2 %
|
|
|
|
|
|
|
Homebuilding
debt
|
$ 4,057,496
|
|
4,652,338
|
|
5,542,513
|
Less: Homebuilding cash
and cash equivalents
|
1,309,364
|
|
2,735,213
|
|
2,623,320
|
Net homebuilding
debt
|
$ 2,748,132
|
|
1,917,125
|
|
2,919,193
|
Net homebuilding
debt to total capital (1)
|
10.7 %
|
|
8.4 %
|
|
12.4 %
|
|
|
(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:
Ian Frazer
Investor Relations
Lennar Corporation
(305) 485-4129
View original
content:https://www.prnewswire.com/news-releases/lennar-reports-third-quarter-2022-results-301630234.html
SOURCE Lennar Corporation