Second Quarter 2023 Highlights
- Net earnings per diluted share of $3.01
-
- $2.94, excluding mark-to-market
gains on technology investments
- Net earnings of $872 million
-
- $852 million, excluding
mark-to-market gains on technology investments
- Deliveries of 17,074 homes
- New orders of 17,885 homes with a dollar value of $8.2 billion
- Backlog of 20,214 homes with a dollar value of $9.5 billion
- Total revenues of $8.0
billion
- Homebuilding operating earnings of $1.2
billion
-
- Gross margin on home sales of 22.5%
- S,G&A expenses as a % of revenues from home sales of
6.7%
- Net margin on home sales of 15.8%
- Financial Services operating earnings of $112 million
- Multifamily operating loss of $8
million
- Lennar Other operating loss of $18
million
- Homebuilding cash and cash equivalents of $4.0 billion
- Years supply of owned homesites of 1.7 years and controlled
homesites of 70%
- No outstanding borrowings under the Company's $2.6 billion revolving credit facility
- Homebuilding debt to total capital of 13.3%
- Repurchased $158 million
aggregate principal of Senior Notes due in fiscal year 2024
- Repurchased 2 million shares of Lennar common stock for
$208 million
MIAMI, June 14,
2023 /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, 2023. Second quarter net earnings
attributable to Lennar in 2023 were $872
million, or $3.01 per diluted
share, compared to second quarter net earnings attributable to
Lennar in 2022 of $1.3 billion, or
$4.49 per diluted share. Excluding
mark-to-market gains (losses) on technology investments in both
years, second quarter net earnings attributable to Lennar in 2023
were $852 million or $2.94 per diluted share, compared to second
quarter net earnings attributable to Lennar in 2022 of $1.4 billion or $4.69 per diluted share.
Stuart Miller, Executive Chairman
of Lennar, said, "During the quarter, we continued to see the
housing market normalize and recover from the Fed's 2022 aggressive
interest rate hikes in response to elevated inflation. As consumers
have come to accept a "new normal" range for interest rates, demand
has accelerated, leaving the market to reconcile the chronic supply
shortage derived from over a decade of production deficits. Simply
put, America needs more housing, particularly affordable workforce
housing, and demand is strong when price and interest rates are
affordable."
Mr. Miller continued, "Against this backdrop, our second quarter
earnings were $872 million, or
$3.01 per diluted share, compared to
$1.3 billion, or $4.49 per diluted share last year. This quarter's
results reflect the execution of our previously articulated
operating strategies of pricing to market and meeting demand with
affordable pricing and incentives. Accordingly, while our average
sales price per home delivered was $449,000 in the second quarter, compared to
almost $500,000 at the peak last
year, our home deliveries were 17,074, up 3%, and our new orders
were 17,885, up 1%, year over year. Our homebuilding gross margin
started to bounce back in the second quarter to 22.5%, reflecting
cost reductions, and with carefully managed homebuilding S,G&A
expenses of 6.7%, led to a 15.8% net margin."
"While our operating performance remains strong, we continue to
strengthen and fortify our balance sheet and our future. We ended
the quarter with homebuilding debt to capital of 13.3%, the lowest
in our history, no borrowings on our $2.6
billion revolver and cash of $4.0
billion. With liquidity of $6.6
billion and cash on hand exceeding our debt, our balance
sheet has never been in a stronger position."
Rick Beckwitt, Co-Chief Executive
Officer and Co-President of Lennar, said, "Much of our balance
sheet and inventory management progress was driven by the execution
of our land strategy, while simultaneously driving sales,
deliveries and managing production. Our ending community count for
the quarter was 1,263, which was up 3% over last year. We continued
to make significant progress on our land light strategy. This was
evidenced by our years supply of owned homesites improving
to 1.7 years from 2.4 years and our controlled homesite
percentage increasing to 70% from 68% 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 down slightly sequentially, and we believe it will
decline further in the back half of the year as the improving
supply chain and labor market will positively impact our production
times. Our quarterly starts and sales pace were 5.3 homes and 4.8
homes per community, respectively, and we ended the second
quarter with approximately 1,300 completed, unsold homes, about one
home per community, demonstrating our focus on inventory
management."
Mr. Miller concluded, "Interest rates appear to have settled
into a fairly steady, yet higher range, with the consumer digesting
the current housing market, as evidenced by the strong spring
selling season. As we always do, we are going to remain vigilant as
the housing market continues to rebalance the interplay between
short supply with strong demand. As we look ahead to our third
quarter, we expect to deliver between 17,750 to 18,250 homes with a
gross margin between 23.5% to 24.0%. For the full year 2023, we
expect to deliver between 68,000 to 70,000 homes (up from our prior
guidance of between 62,000 to 66,000 homes). We continue to fortify
our balance sheet with significant liquidity and operate from a
position of strength, repurchasing stock and reducing debt, thus
enabling us to continue to execute on our core strategies and
outperform in periods of growth as well as uncertainty."
RESULTS OF OPERATIONS
THREE MONTHS
ENDED MAY 31, 2023 COMPARED
TO
THREE MONTHS ENDED MAY 31, 2022
Homebuilding
Revenues from home sales decreased 4% in the second quarter of
2023 to $7.6 billion from
$8.0 billion in the second quarter of
2022. Revenues were lower primarily due to a 7% decrease in average
sales price of home deliveries, partially offset by a 3% increase
in the number of home deliveries. New home deliveries increased to
17,074 homes in the second quarter of 2023 from 16,549 homes second
quarter of 2022. The average sales price of homes delivered was
$449,000 in the second quarter of
2023, compared to $483,000 in the
second quarter of 2022. The decrease in average sales price of
homes delivered in the second quarter of 2023 compared to the same
period last year was primarily due to pricing to market
and product mix.
Gross margins on home sales were $1.7
billion, or 22.5%, in the second quarter of 2023, compared
to $2.4 billion, or 29.5%, in the
second quarter of 2022. During the second quarter of 2023, gross
margin decreased because revenues per square foot decreased year
over year as the Company priced homes to market and costs per
square foot increased primarily due to higher materials and labor
costs. In addition, land costs increased year over year.
Selling, general and administrative expenses were $511 million in the second quarter of 2023,
compared to $487 million in the
second quarter of 2022. As a percentage of revenues from home
sales, selling, general and administrative expenses increased to
6.7% in the second quarter of 2023, from 6.1% in the second quarter
of 2022, primarily due to an increase in the use of brokers in
current market conditions.
Financial Services
Operating earnings for the Financial Services segment were
$112 million, net of noncontrolling
interests, in the second quarter of 2023, compared to $104 million in the second quarter of 2022. The
increase in operating earnings was primarily due to a higher profit
per locked loan in the Company's mortgage business as a result of
higher margins, partially offset by lower lock volume. There was
also an increase in profitability in the Company's title business
primarily due to benefits of the Company's technology efforts.
Other Ancillary Businesses
Operating loss for the Multifamily segment was $8 million in the second quarter of 2023,
compared to operating earnings of $1
million in the second quarter of 2022. Operating loss for
the Lennar Other segment was $18
million in the second quarter of 2023, compared to operating
loss of $108 million in the second
quarter of 2022.
RESULTS OF OPERATIONS
SIX MONTHS
ENDED MAY 31, 2023 COMPARED
TO
SIX MONTHS ENDED MAY 31, 2022
Homebuilding
Revenues from home sales were $13.7
billion in both the six months ended May 31, 2023 and 2022. Revenues were flat
primarily because a 6% increase in the number of home deliveries
was offset by a 5% decrease in average sales price of homes
delivered. New home deliveries increased to 30,733 homes in the six
months ended May 31, 2023 from 29,087
homes in the six months ended May 31,
2022. The average sales price of homes delivered was
$449,000 in the six months ended
May 31, 2023, compared to
$472,000 in the six months ended
May 31, 2022. The decrease in average
sales price of homes delivered in the six months ended May 31, 2023 compared to the same period last
year was primarily due to pricing to market and product mix.
Gross margins on home sales were $3.0 billion, or 21.9%, in
the six months ended May 31, 2023,
compared to $3.9 billion, or 28.4%,
in the six months ended May 31, 2022.
During the six months ended May 31,
2023, gross margin decreased because revenues per square
foot decreased year over year as the Company priced homes to market
and costs per square foot increased primarily due to higher
materials and labor costs. In addition, land costs increased year
over year.
Selling, general and administrative expenses were $960 million in the six months ended May 31, 2023, compared to $915 million in the six months ended May 31, 2022. As a percentage of revenues from
home sales, selling, general and administrative expenses increased
to 7.0% in the six months ended May 31,
2023, from 6.7% in the six months ended May 31, 2022.
Financial Services
Operating earnings for the Financial Services segment were
$191 million in the six months ended
May 31, 2023, compared to
$195 million in the six months ended
May 31, 2022.
Other Ancillary Businesses
Operating loss for the Multifamily segment was $30 million in the six months ended May 31, 2023, compared to operating earnings of
$6 million in the six months ended
May 31, 2022. Operating loss for
the Lennar Other segment was $58
million in the six months ended May
31, 2023, compared to operating loss of $512 million in the six months ended May 31, 2022.
Tax Rate
For the six months ended May 31,
2023 and 2022, the Company had a tax provision of
$466 million and $600 million, respectively, which resulted in an
overall effective income tax rate of 24.1% and 24.7%, respectively.
In the six months ended May 31, 2023,
the Company's overall effective income tax rate was lower than last
year primarily due to the reinstatement of the new energy efficient
homes credit as a result of the enactment of the Inflation
Reduction Act during the third quarter of 2022.
Share Repurchases
During the second quarter of 2023, the Company repurchased 2
million shares of its common stock for $208
million at an average share price of $103.91. During the six months ended May 31, 2023, the Company repurchased 4 million
shares of its common stock for $397
million at an average share price of $99.25.
Debt Repurchases
During the three months ended May 31,
2023, the Company repurchased $158 million aggregate
principal amount of Senior Notes due in fiscal 2024.
Liquidity
At May 31, 2023, the Company had $4.0 billion of Homebuilding cash and cash
equivalents and no outstanding borrowings under its $2.6 billion revolving credit facility, thereby
providing approximately $6.6 billion of available capacity.
Guidance
The following are the Company's expected results of its
homebuilding and financial services activities for the third
quarter and fiscal year 2023:
|
Third Quarter
2023
|
|
Fiscal Year
2023
|
New Orders
|
18,000 -
19,000
|
|
|
Deliveries
|
17,750 -
18,250
|
|
68,000 -
70,000
|
Average Sales
Price
|
Consistent with Q2
2023
|
|
|
Gross Margin % on Home
Sales
|
23.5% -
24.0%
|
|
|
S,G&A as a % of
Home Sales
|
6.7% - 6.8%
|
|
|
Financial Services
Operating Earnings
|
$100 million - $105
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, but not limited to,
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. We wish to caution readers not to
place undue reliance on any forward-looking statements, which are
expressly qualified in their entirety by this cautionary statement
and speak only as of the date made. 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, or for
Multifamily rental apartments or single family homes; 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 funds' borrowings on the willingness of the funds to invest in
new projects; reductions in the market value of our 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 effects of public health issues such as a
major epidemic or pandemic that could have a negative impact on the
economy and on our businesses; possible unfavorable results in
legal proceedings; conditions in the capital, credit and financial
markets; changes in laws, regulations or the regulatory environment
affecting our business, and the other risks and uncertainties
described in our filings from time to time with the Securities and
Exchange Commission, including those included under the captions
"Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in our most recent
Annual Report on Form 10-K and Quarterly reports on Form 10-Q. 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 Thursday, June 15, 2023. 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 203-369-3357 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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenues:
|
|
|
|
|
|
|
|
Homebuilding
|
$
7,670,017
|
|
7,977,982
|
|
13,826,322
|
|
13,730,187
|
Financial
Services
|
222,979
|
|
200,166
|
|
405,960
|
|
376,867
|
Multifamily
|
151,744
|
|
176,021
|
|
295,267
|
|
443,380
|
Lennar
Other
|
411
|
|
4,527
|
|
8,031
|
|
11,778
|
Total
revenues
|
$
8,045,151
|
|
8,358,696
|
|
14,535,580
|
|
14,562,212
|
|
|
|
|
|
|
|
|
Homebuilding operating
earnings
|
$
1,214,409
|
|
1,880,411
|
|
2,121,248
|
|
2,990,261
|
Financial Services
operating earnings
|
112,599
|
|
103,935
|
|
191,336
|
|
194,726
|
Multifamily operating
earnings (loss)
|
(8,162)
|
|
668
|
|
(29,763)
|
|
6,095
|
Lennar Other operating
loss
|
(18,399)
|
|
(108,424)
|
|
(58,156)
|
|
(511,558)
|
Corporate general and
administrative expenses
|
(124,752)
|
|
(105,207)
|
|
(250,858)
|
|
(218,868)
|
Charitable foundation
contribution
|
(17,074)
|
|
(16,549)
|
|
(30,733)
|
|
(29,087)
|
Earnings before income
taxes
|
1,158,621
|
|
1,754,834
|
|
1,943,074
|
|
2,431,569
|
Provision for income
taxes
|
(280,879)
|
|
(432,276)
|
|
(466,024)
|
|
(599,696)
|
Net earnings
(including net earnings attributable to
noncontrolling interests)
|
877,742
|
|
1,322,558
|
|
1,477,050
|
|
1,831,873
|
Less: Net earnings
attributable to noncontrolling interests
|
6,048
|
|
1,802
|
|
8,822
|
|
7,536
|
Net earnings
attributable to Lennar
|
$
871,694
|
|
1,320,756
|
|
1,468,228
|
|
1,824,337
|
|
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
284,910
|
|
289,895
|
|
285,492
|
|
291,913
|
Diluted
|
284,910
|
|
289,895
|
|
285,492
|
|
291,913
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
3.01
|
|
4.50
|
|
5.07
|
|
6.17
|
Diluted
|
$
3.01
|
|
4.49
|
|
5.07
|
|
6.16
|
|
|
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
|
|
|
Interest incurred
(1)
|
$
49,704
|
|
61,798
|
|
99,281
|
|
121,732
|
|
|
|
|
|
|
|
|
EBIT
(2):
|
|
|
|
|
|
|
|
Net earnings
attributable to Lennar
|
$
871,694
|
|
1,320,756
|
|
1,468,228
|
|
1,824,337
|
Provision for income
taxes
|
280,879
|
|
432,276
|
|
466,024
|
|
599,696
|
Interest expense
included in:
|
|
|
|
|
|
|
|
Costs of homes
sold
|
61,145
|
|
77,608
|
|
110,597
|
|
137,766
|
Costs of land
sold
|
1,028
|
|
87
|
|
1,047
|
|
204
|
Homebuilding other
income (expense), net
|
3,758
|
|
5,338
|
|
7,332
|
|
10,574
|
Total interest
expense
|
65,931
|
|
83,033
|
|
118,976
|
|
148,544
|
EBIT
|
$
1,218,504
|
|
1,836,065
|
|
2,053,228
|
|
2,572,577
|
|
|
(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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Homebuilding
revenues:
|
|
|
|
|
|
|
|
Sales of
homes
|
$
7,636,579
|
|
7,963,683
|
|
13,730,406
|
|
13,685,440
|
Sales of
land
|
16,314
|
|
7,524
|
|
26,032
|
|
31,491
|
Other
homebuilding
|
17,124
|
|
6,775
|
|
69,884
|
|
13,256
|
Total
homebuilding revenues
|
7,670,017
|
|
7,977,982
|
|
13,826,322
|
|
13,730,187
|
|
|
|
|
|
|
|
|
Homebuilding costs
and expenses:
|
|
|
|
|
|
|
|
Costs of homes
sold
|
5,916,325
|
|
5,610,783
|
|
10,719,168
|
|
9,795,647
|
Costs of land
sold
|
11,932
|
|
7,815
|
|
34,009
|
|
36,371
|
Selling, general and
administrative
|
510,700
|
|
486,555
|
|
960,494
|
|
915,033
|
Total
homebuilding costs and expenses
|
6,438,957
|
|
6,105,153
|
|
11,713,671
|
|
10,747,051
|
Homebuilding net
margins
|
1,231,060
|
|
1,872,829
|
|
2,112,651
|
|
2,983,136
|
Homebuilding equity in
earnings (loss) from unconsolidated entities
|
(12,279)
|
|
4,862
|
|
(9,093)
|
|
4,576
|
Homebuilding other
income (expense), net
|
(4,372)
|
|
2,720
|
|
17,690
|
|
2,549
|
Homebuilding
operating earnings
|
$
1,214,409
|
|
1,880,411
|
|
2,121,248
|
|
2,990,261
|
|
|
|
|
|
|
|
|
Financial Services
revenues
|
$ 222,979
|
|
200,166
|
|
405,960
|
|
376,867
|
Financial Services
costs and expenses
|
110,380
|
|
96,231
|
|
214,624
|
|
182,141
|
Financial Services
operating earnings
|
$ 112,599
|
|
103,935
|
|
191,336
|
|
194,726
|
|
|
|
|
|
|
|
|
Multifamily
revenues
|
$ 151,744
|
|
176,021
|
|
295,267
|
|
443,380
|
Multifamily costs and
expenses
|
154,354
|
|
175,152
|
|
303,310
|
|
438,889
|
Multifamily equity in
earnings (loss) from unconsolidated entities and
other income, net
|
(5,552)
|
|
(201)
|
|
(21,720)
|
|
1,604
|
Multifamily
operating earnings (loss)
|
$
(8,162)
|
|
668
|
|
(29,763)
|
|
6,095
|
|
|
|
|
|
|
|
|
Lennar Other
revenues
|
$
411
|
|
4,527
|
|
8,031
|
|
11,778
|
Lennar Other costs and
expenses
|
6,795
|
|
8,236
|
|
13,271
|
|
13,643
|
Lennar Other equity in
loss from unconsolidated entities, other
expense, net, and other loss
|
(37,512)
|
|
(26,750)
|
|
(54,459)
|
|
(36,558)
|
Lennar Other unrealized
gains (losses) from technology investments (1)
|
25,497
|
|
(77,965)
|
|
1,543
|
|
(473,135)
|
Lennar Other
operating loss
|
$ (18,399)
|
|
(108,424)
|
|
(58,156)
|
|
(511,558)
|
(1) The following
is a detail of Lennar Other unrealized gains (losses) from
mark-to-market adjustments on technology investments:
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
May
31,
|
|
May
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Blend Labs
(BLND)
|
$
(1,332)
|
|
(13,550)
|
|
(746)
|
|
(20,992)
|
Hippo (HIPO)
|
(4,399)
|
|
(37,946)
|
|
2,233
|
|
(162,403)
|
Opendoor
(OPEN)
|
22,512
|
|
(20,999)
|
|
14,821
|
|
(164,360)
|
SmartRent
(SMRT)
|
8,621
|
|
(3,950)
|
|
9,926
|
|
(48,313)
|
Sonder
(SOND)
|
(138)
|
|
(1,626)
|
|
(458)
|
|
(2,132)
|
Sunnova
(NOVA)
|
233
|
|
106
|
|
(24,233)
|
|
(74,935)
|
|
$
25,497
|
|
(77,965)
|
|
1,543
|
|
(473,135)
|
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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Deliveries:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
5,372
|
|
5,198
|
|
$
2,349,348
|
|
2,225,725
|
|
$ 437,000
|
|
428,000
|
Central
|
3,220
|
|
2,944
|
|
1,400,226
|
|
1,283,763
|
|
435,000
|
|
436,000
|
Texas
|
3,908
|
|
3,288
|
|
1,137,517
|
|
1,093,533
|
|
291,000
|
|
333,000
|
West
|
4,565
|
|
5,110
|
|
2,773,005
|
|
3,367,261
|
|
607,000
|
|
659,000
|
Other
|
9
|
|
9
|
|
7,401
|
|
9,159
|
|
822,000
|
|
1,018,000
|
Total
|
17,074
|
|
16,549
|
|
$
7,667,497
|
|
7,979,441
|
|
$ 449,000
|
|
483,000
|
|
Of the total homes
delivered listed above, 72 homes with a dollar value of $31 million
and an average sales price of $429,000 represent home deliveries
from unconsolidated entities for the three months ended May 31,
2023, compared to 44 home deliveries with a dollar value of
$16 million and an average sales price of $358,000 for the three
months ended May 31, 2022.
|
|
At May
31,
|
|
For the Three Months
Ended May 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
New
Orders:
|
Active
Communities
|
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
370
|
|
354
|
|
5,484
|
|
5,973
|
|
$
2,356,554
|
|
2,753,770
|
|
$ 430,000
|
|
461,000
|
Central
|
299
|
|
315
|
|
3,618
|
|
3,576
|
|
1,539,430
|
|
1,663,354
|
|
425,000
|
|
465,000
|
Texas
|
226
|
|
205
|
|
3,732
|
|
3,375
|
|
1,079,757
|
|
1,189,263
|
|
289,000
|
|
352,000
|
West
|
365
|
|
348
|
|
5,045
|
|
4,858
|
|
3,190,159
|
|
3,482,679
|
|
632,000
|
|
717,000
|
Other
|
3
|
|
3
|
|
6
|
|
10
|
|
5,544
|
|
9,203
|
|
924,000
|
|
920,000
|
Total
|
1,263
|
|
1,225
|
|
17,885
|
|
17,792
|
|
$
8,171,444
|
|
9,098,269
|
|
$ 457,000
|
|
511,000
|
|
Of the total homes
listed above, 73 homes with a dollar value of $37 million and an
average sales price of $507,000 represent homes in seven active
communities from unconsolidated entities for the three months ended
May 31, 2023, compared to 60 homes with a dollar value of $31
million and an average sales price of $514,000 in seven active
communities for the three months ended May 31, 2022.
|
|
For the Six Months
Ended May 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Deliveries:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
9,667
|
|
9,280
|
|
$
4,239,069
|
|
3,898,097
|
|
$ 439,000
|
|
420,000
|
Central
|
5,520
|
|
5,465
|
|
2,423,845
|
|
2,389,692
|
|
439,000
|
|
437,000
|
Texas
|
7,329
|
|
5,825
|
|
2,154,490
|
|
1,899,163
|
|
294,000
|
|
326,000
|
West
|
8,207
|
|
8,502
|
|
4,967,027
|
|
5,509,465
|
|
605,000
|
|
648,000
|
Other
|
10
|
|
15
|
|
8,566
|
|
14,161
|
|
857,000
|
|
944,000
|
Total
|
30,733
|
|
29,087
|
|
$
13,792,997
|
|
13,710,578
|
|
$ 449,000
|
|
472,000
|
|
Of the total homes
delivered listed above, 135 homes with a dollar value of $63
million and an average sales price of $464,000 represent home
deliveries from unconsolidated entities for the six months ended
May 31, 2023, compared to 69 home deliveries with a dollar value of
$25 million and an average sales price of $364,000 for the six
months ended May 31, 2022.
|
|
For the Six Months
Ended May 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
New
Orders:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
9,761
|
|
10,883
|
|
$
4,208,450
|
|
4,886,826
|
|
$ 431,000
|
|
449,000
|
Central
|
5,923
|
|
6,688
|
|
2,509,528
|
|
3,065,492
|
|
424,000
|
|
458,000
|
Texas
|
6,874
|
|
6,141
|
|
1,959,213
|
|
2,111,048
|
|
285,000
|
|
344,000
|
West
|
9,510
|
|
9,812
|
|
5,898,485
|
|
6,818,611
|
|
620,000
|
|
695,000
|
Other
|
11
|
|
15
|
|
9,229
|
|
13,831
|
|
839,000
|
|
922,000
|
Total
|
32,079
|
|
33,539
|
|
14,584,905
|
|
16,895,808
|
|
$ 455,000
|
|
504,000
|
|
Of the total new orders
listed above, 170 homes with a dollar value of $75 million and
an average sales price of $443,000 represent new orders from
unconsolidated entities for the six months ended May 31, 2023,
compared to 104 new orders with a dollar value of $48 million and
an average sales price of $463,000 for the six months ended May 31,
2022.
|
|
At May
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Backlog:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
8,799
|
|
9,882
|
|
$
3,789,706
|
|
4,566,295
|
|
$ 431,000
|
|
462,000
|
Central
|
4,428
|
|
6,381
|
|
1,941,113
|
|
3,010,596
|
|
438,000
|
|
472,000
|
Texas
|
2,242
|
|
4,582
|
|
641,806
|
|
1,665,155
|
|
286,000
|
|
363,000
|
West
|
4,743
|
|
7,775
|
|
3,157,935
|
|
5,444,307
|
|
666,000
|
|
700,000
|
Other
|
2
|
|
4
|
|
1,828
|
|
3,611
|
|
914,000
|
|
903,000
|
Total
|
20,214
|
|
28,624
|
|
$
9,532,388
|
|
14,689,964
|
|
$ 472,000
|
|
513,000
|
|
Of the total homes in
backlog listed above, 201 homes with a backlog dollar value of
$90 million and an average sales price of $450,000 represent the
backlog from unconsolidated entities at May 31, 2023, compared
to 114 homes with a backlog dollar value of $52 million and an
average sales price of $453,000 at May 31, 2022.
|
LENNAR CORPORATION
AND SUBSIDIARIES Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
(unaudited)
|
|
|
May
31,
|
|
November
30,
|
|
2023
|
|
2022
|
ASSETS
|
|
|
|
Homebuilding:
|
|
|
|
Cash and cash
equivalents
|
$
4,004,679
|
|
4,616,124
|
Restricted
cash
|
19,000
|
|
23,046
|
Receivables,
net
|
619,720
|
|
673,980
|
Inventories:
|
|
|
|
Finished homes
and construction in progress
|
12,190,243
|
|
11,718,507
|
Land and land
under development
|
7,114,082
|
|
7,382,273
|
Consolidated
inventory not owned
|
2,382,495
|
|
2,331,231
|
Total
inventories
|
21,686,820
|
|
21,432,011
|
Investments in
unconsolidated entities
|
1,137,189
|
|
1,173,164
|
Goodwill
|
3,442,359
|
|
3,442,359
|
Other
assets
|
1,582,299
|
|
1,323,478
|
|
32,492,066
|
|
32,684,162
|
Financial
Services
|
2,264,658
|
|
3,254,257
|
Multifamily
|
1,309,548
|
|
1,257,337
|
Lennar
Other
|
791,415
|
|
788,539
|
Total
assets
|
$
36,857,687
|
|
37,984,295
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Homebuilding:
|
|
|
|
Accounts
payable
|
$
1,700,895
|
|
1,616,128
|
Liabilities related to
consolidated inventory not owned
|
2,014,506
|
|
1,967,551
|
Senior notes and other
debts payable, net
|
3,852,258
|
|
4,047,294
|
Other
liabilities
|
2,433,038
|
|
3,347,673
|
|
10,000,697
|
|
10,978,646
|
Financial
Services
|
1,311,928
|
|
2,353,904
|
Multifamily
|
298,523
|
|
313,484
|
Lennar
Other
|
85,420
|
|
97,894
|
Total
liabilities
|
11,696,568
|
|
13,743,928
|
Stockholders'
equity:
|
|
|
|
Preferred
stock
|
—
|
|
—
|
Class A common stock
of $0.10 par value
|
25,843
|
|
25,608
|
Class B common stock
of $0.10 par value
|
3,660
|
|
3,660
|
Additional paid-in
capital
|
5,546,128
|
|
5,417,796
|
Retained
earnings
|
20,111,368
|
|
18,861,417
|
Treasury
stock
|
(675,686)
|
|
(210,389)
|
Accumulated other
comprehensive income
|
3,832
|
|
2,408
|
Total stockholders'
equity
|
25,015,145
|
|
24,100,500
|
Noncontrolling
interests
|
145,974
|
|
139,867
|
Total
equity
|
25,161,119
|
|
24,240,367
|
Total liabilities
and equity
|
$
36,857,687
|
|
37,984,295
|
LENNAR CORPORATION
AND SUBSIDIARIES Supplemental Data
(Dollars in thousands)
(unaudited)
|
|
|
May
31,
|
|
November
30,
|
|
May
31,
|
|
2023
|
|
2022
|
|
2022
|
Homebuilding
debt
|
$ 3,852,258
|
|
4,047,294
|
|
4,645,791
|
Stockholders'
equity
|
25,015,145
|
|
24,100,500
|
|
21,598,255
|
Total
capital
|
$
28,867,403
|
|
28,147,794
|
|
26,244,046
|
Homebuilding debt to
total capital
|
13.3 %
|
|
14.4 %
|
|
17.7 %
|
|
|
|
|
|
|
Homebuilding
debt
|
$ 3,852,258
|
|
4,047,294
|
|
4,645,791
|
Less: Homebuilding cash
and cash equivalents
|
4,004,679
|
|
4,616,124
|
|
1,314,741
|
Net homebuilding
debt
|
$
(152,421)
|
|
(568,830)
|
|
3,331,050
|
Net homebuilding
debt to total capital (1)
|
(0.6) %
|
|
(2.4) %
|
|
13.4 %
|
|
|
(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-second-quarter-2023-results-301851282.html
SOURCE Lennar Corporation