2022 Fourth Quarter Highlights – comparisons to
the prior year quarter
- Net earnings per diluted share increased 16% to $4.55
-
- Increased 15% to $5.02, excluding
mark-to-market adjustments on technology investments, homebuilding
impairments and deposit write-offs (collectively,
"adjustments")
- Net earnings increased 11% to $1.3
billion
-
- Increased 10% to $1.5 billion,
excluding adjustments
- Deliveries increased 13% to 20,064 homes
- New orders decreased 15% to 13,200 homes; new orders dollar
value decreased 24% to $5.5
billion
- Backlog decreased 21% to 18,869 homes; backlog dollar value
decreased 23% to $8.7 billion
- Total revenues increased 21% to $10.2
billion
- Homebuilding operating earnings increased 4% to $1.8 billion
-
- Gross margin on home sales of 24.8%
-
- Pre-impairment gross margin on home sales of 25.3% - down 270
basis points ("bps")
- S,G&A expenses as a % of revenues from home sales improved
20 bps to 5.8%
- Net margin on home sales of 19.0%
- Financial Services operating earnings of $124.8 million, compared to operating earnings of
$111.2 million
- Multifamily operating earnings of $14.8
million, compared to operating earnings of $9.3 million
- Lennar Other operating loss of $106.1
million, compared to operating loss of $176.2 million
- Homebuilding cash and cash equivalents of $4.6 billion
- Years supply of owned homesites improved to 2.5 years, compared
to 3.0 years
- Controlled homesites increased to 63%, compared to 59%
- No outstanding borrowings under the Company's $2.6 billion revolving credit facility
- Homebuilding debt to total capital improved to 14.4%, compared
to 18.3%
2022 Fiscal Year Highlights – comparisons to the
prior year
- Net earnings, deliveries and revenues for 2022 were the highest
in the Company's history
- Net earnings per diluted share increased 10% to $15.72
-
- Increased 38% to $17.91,
excluding adjustments
- Net earnings increased 4% to $4.6
billion
-
- Increased 29% to $5.2 billion,
excluding adjustments
- Deliveries increased 11% to 66,399 homes
- New orders decreased 5% to 61,105 homes
- Total revenues increased 24% to $33.7
billion
- Net margin on home sales improved 170 bps to 21.4 %
- Retired early $575 million of
homebuilding senior notes due November
2022
- Repurchased 11 million shares of Lennar common stock for
$967.4 million
MIAMI, Dec. 14,
2022 /PRNewswire/ -- Lennar Corporation
(NYSE: LEN and LEN.B), one of the nation's largest
homebuilders, today reported results for its fourth quarter and
fiscal year ended November 30, 2022.
Fourth quarter net earnings attributable to Lennar in 2022 were
$1.3 billion, or $4.55 per diluted share, compared to $1.2 billion, or $3.91 per diluted share in the fourth quarter of
2021. Net earnings attributable to Lennar for the year ended
November 30, 2022 were $4.6 billion, or $15.72 per diluted share, compared to $4.4
billion, or $14.27 per diluted share
for the year ended November 30, 2021.
Excluding mark-to-market adjustments on technology investments in
both years, and homebuilding impairments and deposit write-offs in
2022, fourth quarter net earnings attributable to Lennar in 2022
were $1.5 billion, or $5.02 per diluted share, compared to fourth
quarter net earnings attributable to Lennar in 2021 of $1.3 billion, or $4.36 per diluted share.
Stuart Miller, Executive Chairman
of Lennar, said, "We are pleased to announce our fourth quarter
results which were consistent with our previously articulated
strategies. In the fourth quarter, our earnings were $1.3 billion, or $4.55 per diluted share, compared to $1.2 billion, or $3.91 per diluted share for the fourth quarter
last year. Excluding mark-to-market losses on our technology
investments, homebuilding impairments and deposit write-offs,
fourth quarter earnings were $1.5
billion, or $5.02 per diluted
share, compared to $1.3 billion, or
$4.36 per diluted share for the
fourth quarter last year, excluding mark-to-market losses, a 10%
and 15% increase year over year, respectively."
Mr. Miller continued, "In the fourth quarter, consistent with
our strategy of maintaining tight inventory control, our home
deliveries were 20,064, up 13% over last year, and in line with our
guidance estimate given at the beginning of the quarter.
Additionally, we produced a pre-impairment homebuilding gross
margin of 25.3% and homebuilding S,G&A expenses of 5.8%,
leading to a 19.5% pre-impairment net margin. Our gross margin
declined by 270 basis points year-over-year as we adjusted the
price of both our new home sales and homes in backlog to market to
reduce cancellation rates and promote deliveries."
We matched our starts pace to sales pace and drove sales by our
"pricing to market" to turn inventory, generate cash, and maximize
returns. Accordingly, our new orders in the fourth quarter were
down 15%, year over year, which compares favorably to reported
market conditions, including a cancellation rate of 26%, compared
to 12% last year. Our sales volume and pricing have clearly been
impacted by rising interest rates, but there remains a significant
national shortage of housing, especially workforce housing, and
there is still demand as we navigate the rebalance between price
and interest rates."
"We have also remained very focused on our balance sheet and
liquidity. Accordingly, at year end, we had homebuilding debt to
capital of 14.4%, the lowest in our history, no borrowings on our
$2.6 billion revolver and cash of
$4.6 billion. With liquidity of
$7.2 billion and no debt maturing
until fiscal 2024, 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 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 was 1,208, which was up slightly from the
third quarter. We also continued to make significant progress on
our land light strategy. This was evidenced by our years supply of
owned homesites improving to 2.5 years from 3.0 years and our
controlled homesite percentage increasing to 63% from 59% year over
year."
Jon Jaffe, Co-Chief Executive
Officer and Co-President of Lennar, said, "During the quarter,
consistent with our strategy of cost control and cycle time
reduction, our homebuilding machine continued to be intensely
focused on carefully managing production. Our cycle time during the
quarter was flat sequentially, indicating that the well documented
supply chain and labor issues that impacted our productivity are
beginning to become more manageable and perhaps subside. Our
quarterly starts and sales pace were 3.6 homes and 3.7 homes per
community, respectively, and we ended the fourth quarter with
approximately 900 completed, unsold homes, less than one home per
community, demonstrating our focus on inventory management."
Mr. Miller concluded, "As we have seen over the past quarters,
interest rates are fluctuating and are likely to continue to move,
and the housing market will continue to rebalance pricing and
interest rates. While we have a clear-cut strategy of execution, as
we look towards 2023, we will only give broad boundaries for
deliveries and gross margin. For the first quarter of 2023, the
range for deliveries will be between 12,000 to 13,500 homes and
gross margin will be about 21%. For the full year 2023, the range
for deliveries will be between 60,000 to 65,000 homes. 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 NOVEMBER 30, 2022 COMPARED TO
THREE
MONTHS ENDED NOVEMBER 30,
2021
Homebuilding
Revenues from home sales increased 21% in the fourth quarter of
2022 to $9.7 billion from
$8.0 billion in the fourth quarter of
2021. Revenues were higher primarily due to a 13% increase in the
number of home deliveries and an 8% increase in the average sales
price. New home deliveries increased to 20,064 homes in the fourth
quarter of 2022 from 17,819 homes in the fourth quarter of 2021.
The average sales price of homes delivered was $483,000 in the fourth quarter of 2022, compared
to $448,000 in the fourth quarter of
2021.
Gross margins on home sales were $2.4 billion, or 24.8% (25.3% pre-impairment), in
the fourth quarter of 2022, compared to $2.2
billion, or 28.0%, in the fourth quarter of 2021. Gross
margins in the fourth quarter of 2022 include $30.8 million of homebuilding impairments in
eight communities and $13.6 million
of impairments to the Company's homes in backlog. During the fourth
quarter of 2022, gross margin decreased due to an increase in costs
per square foot primarily due to higher material and labor costs
and higher land costs, which were partially offset by an increase
in revenues per square foot, which was negatively impacted by
higher sales incentives. Gross loss on land sales was $21.1 million in the fourth quarter of 2022,
which includes $37.2 million of
deposit write-offs as the Company walked away from 27,800
controlled homesites. This compared to gross margin on land sales
of $6.3 million in the fourth quarter
of 2021.
Selling, general and administrative expenses were $563.4 million in the fourth quarter of 2022,
compared to $477.6 million in the
fourth quarter of 2021. As a percentage of revenues from home
sales, selling, general and administrative expenses improved to
5.8% in the fourth quarter of 2022, from 6.0% in the fourth quarter
of 2021. This was the lowest percentage in the Company's history
primarily due to an increase in leverage as a result of higher
volume and average sales price and benefits of the Company's
technology efforts.
Financial Services
Operating earnings for the Financial Services segment were
$124.8 million in the fourth quarter
of 2022, compared to $111.2 million
in the fourth quarter of 2021. The increase in operating earnings
was primarily due to higher volume and lower costs in the Company's
title business due to benefits of the Company's technology
efforts.
Other Ancillary Businesses
Operating earnings for the Multifamily segment were $14.8 million in the fourth quarter of 2022,
compared to $9.3 million in the
fourth quarter of 2021. Operating loss for the Lennar Other segment
was $106.1 million in the fourth
quarter of 2022, compared to an operating loss of $176.2 million in the fourth quarter of
2021. The Lennar Other operating loss for both the fourth quarter
of 2022 and 2021 was primarily due to negative mark-to-market
adjustments on the Company's publicly traded technology
investments.
RESULTS OF OPERATIONS
YEAR ENDED NOVEMBER 30,
2022 COMPARED TO
YEAR ENDED NOVEMBER 30, 2021
Homebuilding
Revenues from home sales increased 25% in the year ended
November 30, 2022 to $31.8 billion from $25.3
billion in the year ended November
30, 2021. Revenues were higher primarily due to an 11%
increase in the number of home deliveries and a 13% increase in the
average sales price. New home deliveries increased to 66,399 homes
in the year ended November 30, 2022
from 59,825 homes in the year ended November
30, 2021. The average sales price of homes delivered was
$480,000 in the year ended
November 30, 2022, compared to
$424,000 in the year ended
November 30, 2021.
Gross margins on home sales were $8.8
billion, or 27.5% (27.7% pre-impairment), in the year ended
November 30, 2022, compared to
$6.8 billion, or 26.8%, in the year
ended November 30, 2021. Gross
margins in the year ended November 30,
2022 include $33.6 million of
homebuilding impairments in nine communities and $18.1 million of impairments to the Company's
homes in backlog taken during the year. During the year ended
November 30, 2022, an increase in
costs per square foot primarily due to higher materials and labor
costs, was mostly offset by an increase in revenues per square
foot. 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. Gross loss on land
sales was $28.5 million in the year ended November 30, 2022, which includes $47.9 million of deposit write-offs as the
Company walked away from 42,000 controlled homesites. This compared
to gross margin on land sales of $24.3
million in the year ended November
30, 2021.
Selling, general and administrative expenses were $2.0 billion in the year ended November 30, 2022, compared to $1.8 billion in the year ended November 30, 2021. As a percentage of revenues
from home sales, selling, general and administrative expenses
improved to 6.2% in the year ended November
30, 2022, from 7.1% in the year ended November 30, 2021, due to a decrease in broker
commissions, an increase in leverage, and benefits of the Company's
technology efforts.
Financial Services
Operating earnings for the Financial Services segment were
$381.9 million in the year ended
November 30, 2022. The operating
earnings included a $35.5 million
one-time charge due to an increase in a litigation accrual in the
third quarter related to a court judgment. The Company has appealed
this judgment since it believes there were clear errors of law made
by the trial court. Excluding this one-time charge, operating
earnings were $417.4 million,
compared to operating earnings of $490.4
million in the year ended November
30, 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. Mortgage results were partially offset by the Company's
title earnings, which increased primarily due to higher revenues
per transaction and lower costs due to benefits of the Company's
technology efforts.
Other Ancillary Businesses
Operating earnings for the Multifamily segment were $66.8 million in the year ended November 30, 2022, compared to $21.5 million in the year ended November 30, 2021. Operating loss for the Lennar
Other segment was $735.6 million in
the year ended November 30, 2022,
compared to operating earnings of $733.0
million in the year ended November
30, 2021. Lennar Other operating loss for the year ended
November 30, 2022 was primarily due
to negative mark-to-market adjustments on the Company's publicly
traded technology investments. The operating earnings for the year
ended November 30, 2021 were
primarily due to positive mark-to-market adjustments on the
Company's publicly traded technology investments and the gain on
the sale of the Company's solar business.
Debt Transaction
During the year ended November 30,
2022, the Company retired early $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.
Tax Rate
For both the years ended November 30,
2022 and 2021, the Company had a tax provision of
$1.4 billion, which resulted in an
overall effective income tax rate of 22.8% and 23.5%, respectively.
The Company's overall effective income tax rate was lower in 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.
Share Repurchases
During the fourth quarter of 2022, the Company repurchased 1.6
million shares of its common stock for $120.5 million at an average per share price of
$75.32. For the year ended
November 30, 2022, the Company
repurchased 11.0 million shares of its common stock for
$967.4 million at an average per
share price of $88.20.
Liquidity
At November 30, 2022, the Company had $4.6 billion of Homebuilding cash and cash
equivalents and no outstanding borrowings under its $2.6 billion revolving credit facility, thereby
providing $7.2 billion of available
capacity.
Guidance
The following are the Company's expected results of its
homebuilding and financial services activities:
|
First Quarter
2023
|
|
Fiscal Year
2023
|
New Orders
|
12,000 -
13,500
|
|
|
Deliveries
|
12,000 -
13,500
|
|
60,000 -
65,000
|
Average Sales
Price
|
$440,000 -
$450,000
|
|
|
Gross Margin % on Home
Sales
|
About 21.0%
|
|
|
S,G&A as a % of
Home Sales
|
About 8.0%
|
|
|
Financial Services
Operating Earnings
|
$50 million - $55
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 slowdowns in real
estate markets in regions where we have significant Homebuilding or
Multifamily development activities; decreased demand for our homes,
either for sale or for rent, or Multifamily rental apartments; the
potential impact of inflation; the impact of increased cost of
mortgage financing for homebuyers, increased interest rates or
increased competition in the mortgage industry; supply shortages
and increased costs related to construction materials, including
lumber, and labor; cost increases related to real estate taxes and
insurance; 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; 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;
the forfeiture of deposits related to land purchase options we
decide not to exercise; the potential negative impact to our
business of the coronavirus (COVID-19) pandemic; 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 fourth quarter
earnings will be held at 11:00 a.m. Eastern
Time on Thursday, December 15, 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 203-369-3604 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
|
|
Years
Ended
|
|
November
30,
|
|
November
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenues:
|
|
|
|
|
|
|
|
Homebuilding
|
$
9,741,652
|
|
8,015,636
|
|
31,951,335
|
|
25,545,242
|
Financial
Services
|
230,735
|
|
228,956
|
|
809,680
|
|
898,745
|
Multifamily
|
179,167
|
|
188,395
|
|
865,603
|
|
665,232
|
Lennar
Other
|
22,813
|
|
573
|
|
44,392
|
|
21,457
|
Total
revenues
|
$
10,174,367
|
|
8,433,560
|
|
33,671,010
|
|
27,130,676
|
|
|
|
|
|
|
|
|
Homebuilding operating
earnings
|
$
1,823,832
|
|
1,756,274
|
|
6,777,317
|
|
5,031,762
|
Financial Services
operating earnings
|
125,228
|
|
111,404
|
|
383,302
|
|
491,014
|
Multifamily operating
earnings
|
14,911
|
|
9,323
|
|
69,493
|
|
21,453
|
Lennar Other operating
earnings (loss)
|
(105,111)
|
|
(176,186)
|
|
(734,649)
|
|
733,035
|
Corporate general and
administrative expenses
|
(80,073)
|
|
(102,191)
|
|
(414,498)
|
|
(398,381)
|
Charitable foundation
contribution
|
(20,064)
|
|
(17,819)
|
|
(66,399)
|
|
(59,825)
|
Earnings before income
taxes
|
1,758,723
|
|
1,580,805
|
|
6,014,566
|
|
5,819,058
|
Provision for income
taxes
|
(414,789)
|
|
(387,155)
|
|
(1,366,065)
|
|
(1,362,509)
|
Net earnings
(including net earnings attributable to noncontrolling
interests)
|
1,343,934
|
|
1,193,650
|
|
4,648,501
|
|
4,456,549
|
Less: Net earnings
attributable to noncontrolling interests
|
21,490
|
|
3,159
|
|
34,376
|
|
26,438
|
Net earnings
attributable to Lennar
|
$
1,322,444
|
|
1,190,491
|
|
4,614,125
|
|
4,430,111
|
|
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
287,362
|
|
301,238
|
|
289,824
|
|
306,612
|
Diluted
|
287,362
|
|
301,238
|
|
289,824
|
|
306,612
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
4.56
|
|
3.91
|
|
15.74
|
|
14.28
|
Diluted
|
$
4.55
|
|
3.91
|
|
15.72
|
|
14.27
|
|
|
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
|
|
|
Interest incurred
(1)
|
$
49,970
|
|
64,516
|
|
230,839
|
|
275,091
|
|
|
|
|
|
|
|
|
EBIT
(2):
|
|
|
|
|
|
|
|
Net earnings
attributable to Lennar
|
$
1,322,444
|
|
1,190,491
|
|
4,614,125
|
|
4,430,111
|
Provision for income
taxes
|
414,789
|
|
387,155
|
|
1,366,065
|
|
1,362,509
|
Interest expense
included in:
|
|
|
|
|
|
|
|
Costs of homes
sold
|
80,980
|
|
93,868
|
|
293,105
|
|
342,756
|
Costs of land
sold
|
139
|
|
190
|
|
498
|
|
2,475
|
Homebuilding other
income, net
|
3,899
|
|
5,014
|
|
19,128
|
|
20,142
|
Total interest
expense
|
85,018
|
|
99,072
|
|
312,731
|
|
365,373
|
EBIT
|
$
1,822,251
|
|
1,676,718
|
|
6,292,921
|
|
6,157,993
|
|
|
(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
|
|
Years
Ended
|
|
November
30,
|
|
November
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Homebuilding
revenues:
|
|
|
|
|
|
|
|
Sales of
homes
|
$
9,654,320
|
|
7,970,752
|
|
31,778,885
|
|
25,348,105
|
Sales of
land
|
79,153
|
|
36,430
|
|
143,041
|
|
167,913
|
Other
homebuilding
|
8,179
|
|
8,454
|
|
29,409
|
|
29,224
|
Total
revenues
|
9,741,652
|
|
8,015,636
|
|
31,951,335
|
|
25,545,242
|
|
|
|
|
|
|
|
|
Homebuilding costs
and expenses:
|
|
|
|
|
|
|
|
Costs of homes
sold
|
7,255,931
|
|
5,741,575
|
|
23,025,467
|
|
18,562,213
|
Costs of land
sold
|
100,224
|
|
30,086
|
|
171,589
|
|
143,631
|
Selling, general and
administrative
|
563,356
|
|
477,581
|
|
1,964,243
|
|
1,796,697
|
Total costs and
expenses
|
7,919,511
|
|
6,249,242
|
|
25,161,299
|
|
20,502,541
|
Homebuilding net
margins
|
1,822,141
|
|
1,766,394
|
|
6,790,036
|
|
5,042,701
|
Homebuilding equity in
loss from unconsolidated entities
|
(7,159)
|
|
(10,343)
|
|
(17,235)
|
|
(14,205)
|
Homebuilding other
income, net
|
8,850
|
|
223
|
|
4,516
|
|
3,266
|
Homebuilding
operating earnings
|
$
1,823,832
|
|
1,756,274
|
|
6,777,317
|
|
5,031,762
|
|
|
|
|
|
|
|
|
Financial Services
revenues
|
$ 230,735
|
|
228,956
|
|
809,680
|
|
898,745
|
Financial Services
costs and expenses
|
105,507
|
|
117,552
|
|
426,378
|
|
407,731
|
Financial Services
operating earnings
|
$ 125,228
|
|
111,404
|
|
383,302
|
|
491,014
|
|
|
|
|
|
|
|
|
Multifamily
revenues
|
$ 179,167
|
|
188,395
|
|
865,603
|
|
665,232
|
Multifamily costs and
expenses
|
194,609
|
|
178,421
|
|
848,931
|
|
652,810
|
Multifamily equity in
earnings (loss) from unconsolidated entities
and other income, net
|
30,353
|
|
(651)
|
|
52,821
|
|
9,031
|
Multifamily
operating earnings
|
$
14,911
|
|
9,323
|
|
69,493
|
|
21,453
|
|
|
|
|
|
|
|
|
Lennar Other
revenues
|
$
22,813
|
|
573
|
|
44,392
|
|
21,457
|
Lennar Other costs and
expenses
|
8,608
|
|
11,961
|
|
32,258
|
|
30,955
|
Lennar Other equity in
earnings (loss) from unconsolidated entities and
other income (expense), net, and other gain
(loss) (1)
|
(23,196)
|
|
15,191
|
|
(91,689)
|
|
231,731
|
Lennar Other unrealized
gain (loss) from technology investments (2)
|
(96,120)
|
|
(179,989)
|
|
(655,094)
|
|
510,802
|
Lennar Other
operating earnings (loss)
|
$
(105,111)
|
|
(176,186)
|
|
(734,649)
|
|
733,035
|
|
|
(1)
|
During the year ended
November 30, 2021, the Company realized a gain of $158.1 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
|
|
Years
Ended
|
|
November
30,
|
|
November
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Blend Labs (BLND)
mark-to-market
|
$
(4,120)
|
|
(13,596)
|
|
(25,630)
|
|
(6,744)
|
Hippo (HIPO)
mark-to-market
|
(27,111)
|
|
(117,221)
|
|
(222,447)
|
|
207,634
|
Opendoor (OPEN)
mark-to-market
|
(46,525)
|
|
(33,444)
|
|
(265,276)
|
|
239,312
|
SmartRent (SMRT)
mark-to-market
|
(6,746)
|
|
(21,310)
|
|
(78,177)
|
|
79,483
|
Sonder (SOND)
mark-to-market
|
(39)
|
|
—
|
|
(2,339)
|
|
—
|
Sunnova (NOVA)
mark-to-market
|
(11,579)
|
|
5,582
|
|
(61,225)
|
|
(8,883)
|
|
$
(96,120)
|
|
(179,989)
|
|
(655,094)
|
|
510,802
|
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 November 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Deliveries:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
6,287
|
|
5,911
|
|
$
2,832,364
|
|
2,273,561
|
|
$ 451,000
|
|
385,000
|
Central
|
4,186
|
|
3,747
|
|
1,874,285
|
|
1,525,027
|
|
448,000
|
|
407,000
|
Texas
|
3,721
|
|
3,096
|
|
1,174,159
|
|
958,938
|
|
316,000
|
|
310,000
|
West
|
5,864
|
|
5,057
|
|
3,795,099
|
|
3,218,377
|
|
647,000
|
|
636,000
|
Other
|
6
|
|
8
|
|
3,570
|
|
7,774
|
|
595,000
|
|
972,000
|
Total
|
20,064
|
|
17,819
|
|
$
9,679,477
|
|
7,983,677
|
|
$ 483,000
|
|
448,000
|
Of the total homes delivered listed above, 59 homes with a
dollar value of $25.2 million and an
average sales price of $426,000
represent home deliveries from unconsolidated entities for the
three months ended November 30, 2022,
compared to 37 home deliveries with a dollar value of $12.9 million and an average sales price of
$349,000 for the three months ended
November 30, 2021.
|
At November
30,
|
|
For the Three Months
Ended November 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
New
Orders:
|
Active
Communities
|
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
316
|
|
345
|
|
5,091
|
|
5,093
|
|
$
2,114,576
|
|
2,119,658
|
|
$ 415,000
|
|
416,000
|
Central
|
313
|
|
302
|
|
2,299
|
|
2,940
|
|
937,816
|
|
1,280,027
|
|
408,000
|
|
435,000
|
Texas
|
235
|
|
241
|
|
2,706
|
|
3,154
|
|
708,833
|
|
1,032,468
|
|
262,000
|
|
327,000
|
West
|
341
|
|
372
|
|
3,101
|
|
4,345
|
|
1,770,085
|
|
2,853,569
|
|
571,000
|
|
657,000
|
Other
|
3
|
|
3
|
|
3
|
|
7
|
|
2,109
|
|
6,418
|
|
703,000
|
|
917,000
|
Total
|
1,208
|
|
1,263
|
|
13,200
|
|
15,539
|
|
$
5,533,419
|
|
7,292,140
|
|
$ 419,000
|
|
469,000
|
Of the total new orders listed above, 78 homes with a dollar
value of $29.1 million and an average
sales price of $373,000 represent new
orders in eight active communities from unconsolidated entities for
the three months ended November 30,
2022, compared to 34 new orders with a dollar value of
$12.1 million and an average sales
price of $356,000 in four active
communities for the three months ended November 30, 2021.
|
For the Years Ended
November 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Deliveries:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
21,214
|
|
18,879
|
|
$
9,268,940
|
|
6,846,153
|
|
$ 437,000
|
|
363,000
|
Central
|
13,152
|
|
12,138
|
|
5,830,587
|
|
4,807,195
|
|
443,000
|
|
396,000
|
Texas
|
12,993
|
|
10,939
|
|
4,212,223
|
|
3,204,609
|
|
324,000
|
|
293,000
|
West
|
19,015
|
|
17,850
|
|
12,513,277
|
|
10,503,304
|
|
658,000
|
|
588,000
|
Other
|
25
|
|
19
|
|
21,386
|
|
18,419
|
|
855,000
|
|
969,000
|
Total
|
66,399
|
|
59,825
|
|
$
31,846,413
|
|
25,379,680
|
|
$ 480,000
|
|
424,000
|
Of the total homes delivered listed above, 174 homes with a
dollar value of $67.5 million and an
average sales price of $388,000
represent home deliveries from unconsolidated entities for the year
ended November 30, 2022, compared
to 95 home deliveries with a dollar value of $31.6 million and an average sales price of
$332,000 for the year ended
November 30, 2021.
|
For the Years Ended
November 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
New
Orders:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
21,649
|
|
20,566
|
|
$
9,516,178
|
|
7,908,164
|
|
$ 440,000
|
|
385,000
|
Central
|
12,020
|
|
12,871
|
|
5,351,534
|
|
5,366,197
|
|
445,000
|
|
417,000
|
Texas
|
11,424
|
|
12,382
|
|
3,596,037
|
|
3,833,294
|
|
315,000
|
|
310,000
|
West
|
15,990
|
|
18,703
|
|
10,604,593
|
|
11,725,035
|
|
663,000
|
|
627,000
|
Other
|
22
|
|
21
|
|
18,608
|
|
20,513
|
|
846,000
|
|
977,000
|
Total
|
61,105
|
|
64,543
|
|
$
29,086,950
|
|
28,853,203
|
|
$ 476,000
|
|
447,000
|
Of the total new orders listed above, 261 homes with a dollar
value of $116.7 million and an
average sales price of $447,000
represent new orders from unconsolidated entities for the year
ended November 30, 2022, compared to
136 new orders with a dollar value of $48.8
million and an average sales price of $359,000 for the year ended November 30, 2021.
|
At November
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Backlog:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
8,706
|
|
7,932
|
|
$
3,820,714
|
|
3,448,719
|
|
$ 439,000
|
|
435,000
|
Central
|
4,025
|
|
5,104
|
|
1,855,430
|
|
2,321,174
|
|
461,000
|
|
455,000
|
Texas
|
2,697
|
|
4,266
|
|
837,083
|
|
1,453,270
|
|
310,000
|
|
341,000
|
West
|
3,440
|
|
6,465
|
|
2,226,477
|
|
4,135,161
|
|
647,000
|
|
640,000
|
Other
|
1
|
|
4
|
|
1,164
|
|
3,942
|
|
1,164,000
|
|
986,000
|
Total
|
18,869
|
|
23,771
|
|
$
8,740,868
|
|
11,362,266
|
|
$ 463,000
|
|
478,000
|
Of the total homes in backlog listed above, 166 homes with a
backlog dollar value of $77.8 million
and an average sales price of $469,000 represent the backlog from
unconsolidated entities at November 30, 2022, compared
to 79 homes with a backlog dollar value of $28.6 million and an average sales price of
$363,000 at November 30, 2021.
During the year ended November 30,
2022, the Company acquired 339 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)
|
|
|
November
30,
|
|
2022
|
|
2021
|
ASSETS
|
|
|
|
Homebuilding:
|
|
|
|
Cash and cash
equivalents
|
$
4,616,124
|
|
2,735,213
|
Restricted
cash
|
23,046
|
|
21,927
|
Receivables,
net
|
673,980
|
|
490,278
|
Inventories:
|
|
|
|
Finished homes and
construction in progress
|
11,718,507
|
|
10,446,139
|
Land and land under
development
|
7,382,273
|
|
7,108,142
|
Consolidated inventory
not owned
|
2,331,231
|
|
1,161,023
|
Total
inventories
|
21,432,011
|
|
18,715,304
|
Investments in
unconsolidated entities
|
1,173,164
|
|
972,084
|
Goodwill
|
3,442,359
|
|
3,442,359
|
Other
assets
|
1,323,478
|
|
1,090,654
|
|
32,684,162
|
|
27,467,819
|
Financial
Services
|
3,254,257
|
|
2,964,367
|
Multifamily
|
1,257,337
|
|
1,311,747
|
Lennar
Other
|
788,539
|
|
1,463,845
|
Total
assets
|
$
37,984,295
|
|
33,207,778
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Homebuilding:
|
|
|
|
Accounts
payable
|
$
1,616,128
|
|
1,321,247
|
Liabilities related to
consolidated inventory not owned
|
1,967,551
|
|
976,602
|
Senior notes and other
debts payable, net
|
4,047,294
|
|
4,652,338
|
Other
liabilities
|
3,347,673
|
|
2,920,055
|
|
10,978,646
|
|
9,870,242
|
Financial
Services
|
2,353,904
|
|
1,906,343
|
Multifamily
|
313,484
|
|
288,930
|
Lennar
Other
|
97,894
|
|
145,981
|
Total
liabilities
|
13,743,928
|
|
12,211,496
|
Stockholders'
equity:
|
|
|
|
Preferred
stock
|
—
|
|
—
|
Class A common stock of
$0.10 par value
|
25,608
|
|
30,050
|
Class B common stock of
$0.10 par value
|
3,660
|
|
3,944
|
Additional paid-in
capital
|
5,417,796
|
|
8,807,891
|
Retained
earnings
|
18,861,417
|
|
14,685,329
|
Treasury
stock
|
(210,389)
|
|
(2,709,448)
|
Accumulated other
comprehensive income (loss)
|
2,408
|
|
(1,341)
|
Total stockholders'
equity
|
24,100,500
|
|
20,816,425
|
Noncontrolling
interests
|
139,867
|
|
179,857
|
Total
equity
|
24,240,367
|
|
20,996,282
|
Total liabilities
and equity
|
$
37,984,295
|
|
33,207,778
|
LENNAR CORPORATION
AND SUBSIDIARIES
|
Supplemental
Data
|
(Dollars in
thousands)
|
(unaudited)
|
|
|
November
30,
|
|
2022
|
|
2021
|
Homebuilding
debt
|
$ 4,047,294
|
|
4,652,338
|
Stockholders'
equity
|
24,100,500
|
|
20,816,425
|
Total
capital
|
$
28,147,794
|
|
25,468,763
|
Homebuilding debt to
total capital
|
14.4 %
|
|
18.3 %
|
|
|
|
|
Homebuilding
debt
|
$ 4,047,294
|
|
4,652,338
|
Less: Homebuilding cash
and cash equivalents
|
4,616,124
|
|
2,735,213
|
Net homebuilding
debt
|
$
(568,830)
|
|
1,917,125
|
Net homebuilding
debt to total capital (1)
|
(2.4) %
|
|
8.4 %
|
|
|
(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-fourth-quarter-and-fiscal-2022-results-301703460.html
SOURCE Lennar Corporation