Second Quarter 2024 Highlights - comparisons to the prior
year quarter
- Net earnings per diluted share increased 15% to $3.45
- $3.38, excluding mark-to-market
losses on technology investments and one-time gain on sale of a
technology investment
- Net earnings increased 9% to $954
million
- New orders increased 19% to 21,293 homes
- Backlog of 17,873 homes with a dollar value of $8.2 billion
- Deliveries increased 15% to 19,690 homes
- Total revenues of $8.8
billion
- Homebuilding operating earnings of $1.3
billion
- Gross margin on home sales of 22.6%
- S,G&A expenses as a % of revenues from home sales of
7.5%
- Net margin on home sales of 15.1%
- Financial Services operating earnings of $146 million
- Multifamily operating loss of $20
million
- Lennar Other operating loss of $28
million
- Homebuilding cash and cash equivalents of $3.6 billion
- Years supply of owned homesites of 1.2 years and controlled
homesites of 79%
- No outstanding borrowings under the Company's $2.2 billion revolving credit facility
- Homebuilding debt to total capital of 7.7%
- Redeemed $454 million aggregate
principal amount of its 4.50% senior notes due April 2024
- Repurchased $100 million
aggregate principal amount of its 4.75% senior notes due
November 2027
- Repurchased 3.8 million shares of Lennar common stock for
$603 million
MIAMI, June 17,
2024 /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, 2024. Second quarter net earnings
attributable to Lennar in 2024 were $954 million, or
$3.45 per diluted share, compared to
second quarter net earnings attributable to Lennar in 2023 of
$872 million, or $3.01 per diluted share. Excluding mark-to-market
losses on technology investments and one-time gain on the sale of a
technology investment, second quarter net earnings attributable to
Lennar in 2024 were $935 million, or
$3.38 per diluted share. Excluding
mark-to-market gains on technology investments, second quarter net
earnings attributable to Lennar in 2023 were $852 million or $2.94 per diluted share.
Stuart Miller, Executive Chairman
and Co-Chief Executive Officer of Lennar, said, "We are pleased to
report another strong quarter against the backdrop of evolving
market conditions as interest rates rose for most of the quarter
and then subsided as the quarter closed. Although affordability
continued to be tested by interest rate movements and
simultaneously challenged consumer sentiment, purchasers remained
responsive to increased sales incentives, resulting in a 19%
increase in our new orders and a 15% increase in our deliveries
year over year. The macroeconomic environment remained relatively
consistent with employment remaining strong, housing supply
remaining chronically short due to production deficits over a
decade, and demand strength driven by strong household formation.
We remained focused on consistent production pace driving sales
pace, while using pricing, incentives, marketing spend and margin
adjustment to enable consistent sales volume in a fluctuating
interest rate environment."
"Earnings were $954 million, or
$3.45 per diluted share, compared to
$872 million, or $3.01 per diluted share last year. We delivered
19,690 homes in our second quarter and our new orders were 21,293.
Our average sales price, net of incentives, per home delivered was
$426,000 in the second quarter, down
5% from last year, and our homebuilding gross margin in the second
quarter was 22.6%, up 10 basis points from last year, as a result
of our careful management of incentives combined with our intense
focus on reducing construction costs, while homebuilding S,G&A
expenses were 7.5%, resulting in a 15.1% net margin."
"Driven by this quarter's strong operating performance, we
constructively allocated capital while we continued to strengthen
and fortify our balance sheet. During the quarter, we repurchased
$603 million of our common stock and
repaid $554 million of senior notes
ending the quarter with homebuilding debt to total capital of 7.7%,
no borrowings on our $2.2 billion
revolver and cash of $3.6 billion.
With cash on hand exceeding our debt, and with overall liquidity of
$5.8 billion, our balance sheet
remains extremely strong. Against that backdrop, we remain focused
on our "land strategies" initiatives in order to intensify our land
light focus and assure consistency of execution now and in the
future as we embrace an ever-more focused manufacturing model for
Lennar."
Jon Jaffe, Co-Chief Executive
Officer and President of Lennar, said, "Operationally, our starts
pace and sales pace were 5.8 homes and 5.7 homes per community in
the second quarter, respectively, as we continue to move closer to
an even flow operating model. Our cycle time was down to 150 days,
or 30% year over year, as our production first focus has positively
impacted our production times, while our inventory turn improved to
1.6 times reflecting broader efficiencies. Concurrently, the Lennar
Machine continued to carefully match our sales pace to our
production pace using our digital marketing and dynamic pricing
models."
"During the quarter, we continued the migration to our land
light strategy. This was evidenced by our years supply of owned
homesites improving to 1.2 years from 1.7 years last year and our
controlled homesite percentage increasing to 79% from 70% year over
year. These results drove our return on inventory to 31.4%, a
year-over-year improvement of 110 basis points."
Mr. Miller concluded, "We continue to remain enthusiastic about
our current execution and our future. We have remained focused on
our operating strategies, while at the same time being observant of
current economic and market trends. This has positioned us
particularly well as the economic environment continues to define
itself throughout the complicated election year in 2024. As we look
ahead to our third quarter, we expect to deliver between 20,500 and
21,000 homes with a gross margin of approximately 23.0%. We remain
focused on delivering 80,000 homes for the full year, with a margin
that remains consistent with last year's margin. We will continue
to fortify our balance sheet with significant liquidity and operate
from a position of strength, thus enabling us to continue to
execute on our core strategies to drive strong cash flow and higher
returns."
RESULTS OF OPERATIONS
THREE MONTHS
ENDED MAY 31, 2024 COMPARED
TO
THREE MONTHS ENDED MAY 31, 2023
Homebuilding
Revenues from home sales increased 9% in the second quarter of
2024 to $8.4 billion from
$7.6 billion in the second quarter of
2023. Revenues were higher primarily due to a 15% increase in the
number of home deliveries, partially offset by a 5% decrease
in the average sales price of homes delivered. New home deliveries
increased to 19,690 homes in the second quarter of 2024 from 17,074
homes in the second quarter of 2023. The average sales price of
homes delivered was $426,000 in the
second quarter of 2024, compared to $449,000 in the second quarter of 2023. The
decrease in average sales price of homes delivered in the second
quarter of 2024 compared to the same period last year was primarily
due to pricing to market through an increased use of incentives
and product mix.
Gross margins on home sales were $1.9
billion, or 22.6%, in the second quarter of 2024, compared
to $1.7 billion, or 22.5%, in the
second quarter of 2023. During the second quarter of 2024, gross
margins increased because of a decrease in costs per square foot as
the Company continued to focus on construction cost savings, which
was partially offset by a decrease in average sales price and an
increase in land costs.
Selling, general and administrative expenses were $630 million in the second quarter of 2024,
compared to $511 million in the
second quarter of 2023. As a percentage of revenues from home
sales, selling, general and administrative expenses increased to
7.5% in the second quarter of 2024, from 6.7% in the second quarter
of 2023, primarily due to an increase in digital marketing,
professional expenses and insurance costs.
Financial Services
Operating earnings for the Financial Services segment were
$146 million in the second quarter of
2024, compared to $112 million in the
second quarter of 2023. The increase in operating earnings was
primarily due to higher volume from increased capture rate and
Lennar deliveries.
Ancillary Businesses
Operating loss for the Multifamily segment was $20 million in the second quarter of 2024,
compared to operating loss of $8
million in the second quarter of 2023. Operating loss for
the Lennar Other segment was $28
million in the second quarter of 2024, compared to an
operating loss of $18 million in the
second quarter of 2023. The Lennar Other operating loss for the
second quarter of 2024 includes $22
million of mark-to-market losses on the Company's publicly
traded technology investments and a $47
million one-time gain on the sale of a technology
investment.
Tax Rate
In the second quarter of 2024 and 2023, the Company had tax
provisions of $300 million and
$281 million, respectively, which
resulted in an overall effective income tax rate of 23.9% and
24.4%, respectively. For both periods, the Company's effective
income tax rate included state income tax expense and
non-deductible executive compensation, partially offset by energy
efficient home and solar tax credits.
OTHER TRANSACTIONS
Debt Transactions
During the second quarter of 2024, the Company redeemed
$454 million aggregate principal
amount of its 4.50% senior notes due April
2024. The redemption price, which was paid in cash, was 100%
of the principal amount outstanding. Additionally, the Company
repurchased $100 million aggregate
principal amount of its 4.75% senior notes due November 2027.
Share Repurchases
In the second quarter of 2024, the Company repurchased 3.8
million shares of its common stock for $603
million at an average share price of $158.64.
Liquidity
At May 31, 2024, the Company had $3.6 billion of Homebuilding cash and cash
equivalents and no outstanding borrowings under its $2.2 billion revolving credit facility, thereby
providing approximately $5.8 billion
of available capacity.
Guidance
The following are the Company's expected results of its
homebuilding and financial services activities for the third
quarter of 2024:
|
Third Quarter
2024
|
|
New Orders
|
20,500 -
21,000
|
|
Deliveries
|
20,500 -
21,000
|
|
Average Sales
Price
|
$420,000 -
$425,000
|
|
Gross Margin % on Home
Sales
|
About 23.0%
|
|
S,G&A as a % of
Home Sales
|
7.3% - 7.5%
|
|
Financial Services
Operating Earnings
|
$135 million - $140
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 differences between
anticipated and actual results include slowdowns in real estate
markets in regions where we have significant Homebuilding or
Multifamily development activities or own a substantial number of
single-family homes for rent; 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 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, including our
land light strategy, and our planned spin-off; 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 filed on January 26, 2024, as amended by our Annual Report
on Form 10-K/A filed on April 25,
2024 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 Tuesday,
June 18, 2024. 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 203-369-3354 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,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Revenues:
|
|
|
|
|
|
|
|
Homebuilding
|
$
8,381,059
|
|
7,670,017
|
|
15,312,050
|
|
13,826,322
|
Financial
Services
|
281,723
|
|
222,979
|
|
531,443
|
|
405,960
|
Multifamily
|
99,500
|
|
151,744
|
|
229,177
|
|
295,267
|
Lennar
Other
|
3,310
|
|
411
|
|
5,852
|
|
8,031
|
Total
revenues
|
$
8,765,592
|
|
8,045,151
|
|
16,078,522
|
|
14,535,580
|
|
|
|
|
|
|
|
|
Homebuilding operating
earnings
|
$
1,340,155
|
|
1,214,409
|
|
2,368,951
|
|
2,121,248
|
Financial Services
operating earnings
|
147,012
|
|
112,599
|
|
278,308
|
|
191,336
|
Multifamily operating
loss
|
(20,474)
|
|
(8,162)
|
|
(36,113)
|
|
(29,763)
|
Lennar Other operating
loss
|
(28,964)
|
|
(18,399)
|
|
(68,512)
|
|
(58,156)
|
Corporate general and
administrative expenses
|
(156,982)
|
|
(124,752)
|
|
(314,303)
|
|
(250,858)
|
Charitable foundation
contribution
|
(19,690)
|
|
(17,074)
|
|
(36,488)
|
|
(30,733)
|
Earnings before income
taxes
|
1,261,057
|
|
1,158,621
|
|
2,191,843
|
|
1,943,074
|
Provision for income
taxes
|
(300,471)
|
|
(280,879)
|
|
(511,336)
|
|
(466,024)
|
Net earnings
(including net earnings attributable to noncontrolling
interests)
|
960,586
|
|
877,742
|
|
1,680,507
|
|
1,477,050
|
Less: Net earnings
attributable to noncontrolling interests
|
6,275
|
|
6,048
|
|
6,862
|
|
8,822
|
Net earnings
attributable to Lennar
|
$
954,311
|
|
871,694
|
|
1,673,645
|
|
1,468,228
|
|
|
|
|
|
|
|
|
Basic and diluted
average shares outstanding
|
273,703
|
|
284,910
|
|
275,325
|
|
285,492
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share
|
$
3.45
|
|
3.01
|
|
6.01
|
|
5.07
|
|
|
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
|
|
|
Interest incurred
(1)
|
$
33,764
|
|
49,704
|
|
70,275
|
|
99,281
|
|
|
|
|
|
|
|
|
EBIT
(2):
|
|
|
|
|
|
|
|
Net earnings
attributable to Lennar
|
$
954,311
|
|
871,694
|
|
1,673,645
|
|
1,468,228
|
Provision for income
taxes
|
300,471
|
|
280,879
|
|
511,336
|
|
466,024
|
Interest expense
included in:
|
|
|
|
|
|
|
|
Costs of homes
sold
|
43,100
|
|
61,145
|
|
82,314
|
|
110,597
|
Costs of land
sold
|
286
|
|
1,028
|
|
286
|
|
1,047
|
Homebuilding other
income (expense), net
|
4,679
|
|
3,758
|
|
9,594
|
|
7,332
|
Total interest
expense
|
48,065
|
|
65,931
|
|
92,194
|
|
118,976
|
EBIT
|
$
1,302,847
|
|
1,218,504
|
|
2,277,175
|
|
2,053,228
|
|
|
(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,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Homebuilding
revenues:
|
|
|
|
|
|
|
|
Sales of
homes
|
$
8,357,750
|
|
7,636,579
|
|
15,259,531
|
|
13,730,406
|
Sales of
land
|
13,598
|
|
16,314
|
|
34,350
|
|
26,032
|
Other
homebuilding
|
9,711
|
|
17,124
|
|
18,169
|
|
69,884
|
Total homebuilding
revenues
|
8,381,059
|
|
7,670,017
|
|
15,312,050
|
|
13,826,322
|
|
|
|
|
|
|
|
|
Homebuilding costs
and expenses:
|
|
|
|
|
|
|
|
Costs of homes
sold
|
6,469,952
|
|
5,916,325
|
|
11,865,484
|
|
10,719,168
|
Costs of land
sold
|
6,903
|
|
11,932
|
|
20,920
|
|
34,009
|
Selling, general and
administrative
|
629,600
|
|
510,700
|
|
1,197,587
|
|
960,494
|
Total homebuilding
costs and expenses
|
7,106,455
|
|
6,438,957
|
|
13,083,991
|
|
11,713,671
|
Homebuilding net
margins
|
1,274,604
|
|
1,231,060
|
|
2,228,059
|
|
2,112,651
|
Homebuilding equity in
earnings (loss) from unconsolidated entities
|
15,516
|
|
(12,279)
|
|
28,818
|
|
(9,093)
|
Homebuilding other
income (expense), net
|
50,035
|
|
(4,372)
|
|
112,074
|
|
17,690
|
Homebuilding
operating earnings
|
$
1,340,155
|
|
1,214,409
|
|
2,368,951
|
|
2,121,248
|
|
|
|
|
|
|
|
|
Financial Services
revenues
|
$
281,723
|
|
222,979
|
|
531,443
|
|
405,960
|
Financial Services
costs and expenses
|
134,711
|
|
110,380
|
|
253,135
|
|
214,624
|
Financial Services
operating earnings
|
$
147,012
|
|
112,599
|
|
278,308
|
|
191,336
|
|
|
|
|
|
|
|
|
Multifamily
revenues
|
$
99,500
|
|
151,744
|
|
229,177
|
|
295,267
|
Multifamily costs and
expenses
|
102,205
|
|
154,354
|
|
234,872
|
|
303,310
|
Multifamily equity in
loss from unconsolidated entities and other income (expense),
net
|
(17,769)
|
|
(5,552)
|
|
(30,418)
|
|
(21,720)
|
Multifamily
operating loss
|
$
(20,474)
|
|
(8,162)
|
|
(36,113)
|
|
(29,763)
|
|
|
|
|
|
|
|
|
Lennar Other
revenues
|
$
3,310
|
|
411
|
|
5,852
|
|
8,031
|
Lennar Other costs and
expenses
|
26,841
|
|
6,795
|
|
35,929
|
|
13,271
|
Lennar Other equity in
earnings (loss) from unconsolidated entities, other income
(expense), net, and other gain (loss)
|
16,081
|
|
(37,512)
|
|
(11,784)
|
|
(54,459)
|
Lennar Other unrealized
gains (losses) from technology investments (1)
|
(21,514)
|
|
25,497
|
|
(26,651)
|
|
1,543
|
Lennar Other
operating loss
|
$
(28,964)
|
|
(18,399)
|
|
(68,512)
|
|
(58,156)
|
|
(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,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Blend Labs (BLND)
|
$
715
|
|
(1,332)
|
|
3,651
|
|
(746)
|
Hippo (HIPO)
|
10,737
|
|
(4,399)
|
|
27,186
|
|
2,233
|
Opendoor
(OPEN)
|
(16,907)
|
|
22,512
|
|
(15,592)
|
|
14,821
|
SmartRent
(SMRT)
|
(4,609)
|
|
8,621
|
|
(6,572)
|
|
9,926
|
Sonder
(SOND)
|
(40)
|
|
(138)
|
|
11
|
|
(458)
|
Sunnova
(NOVA)
|
(11,410)
|
|
233
|
|
(35,335)
|
|
(24,233)
|
|
$
(21,514)
|
|
25,497
|
|
(26,651)
|
|
1,543
|
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 and Pennsylvania
Central: Georgia,
Illinois, Indiana, Maryland, Minnesota, North
Carolina, South Carolina,
Tennessee and Virginia
Texas: Texas
West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah
and Washington
Other: Urban divisions
|
Three Months Ended
May 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Deliveries:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
5,529
|
|
4,893
|
|
$
2,222,108
|
|
2,146,387
|
|
$
402,000
|
|
439,000
|
Central
|
4,188
|
|
3,699
|
|
1,706,051
|
|
1,603,187
|
|
407,000
|
|
433,000
|
Texas
|
4,669
|
|
3,908
|
|
1,194,525
|
|
1,137,517
|
|
256,000
|
|
291,000
|
West
|
5,292
|
|
4,565
|
|
3,263,904
|
|
2,773,005
|
|
617,000
|
|
607,000
|
Other
|
12
|
|
9
|
|
6,343
|
|
7,401
|
|
529,000
|
|
822,000
|
Total
|
19,690
|
|
17,074
|
|
$
8,392,931
|
|
7,667,497
|
|
$
426,000
|
|
449,000
|
Of the total homes delivered listed above, 70 homes with a
dollar value of $35 million and an
average sales price of $503,000
represent home deliveries from unconsolidated entities for the
three months ended May 31, 2024,
compared to 72 home deliveries with a dollar value of $31 million and an average sales price of
$429,000 for the three months ended
May 31, 2023.
|
At May
31,
|
|
Three Months Ended
May 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
New
Orders:
|
Active
Communities
|
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
309
|
|
339
|
|
5,000
|
|
5,022
|
|
$
2,033,401
|
|
2,166,704
|
|
$ 407,000
|
|
431,000
|
Central
|
332
|
|
330
|
|
5,332
|
|
4,080
|
|
2,144,250
|
|
1,729,280
|
|
402,000
|
|
424,000
|
Texas
|
239
|
|
226
|
|
5,213
|
|
3,732
|
|
1,332,392
|
|
1,079,757
|
|
256,000
|
|
289,000
|
West
|
363
|
|
365
|
|
5,735
|
|
5,045
|
|
3,679,145
|
|
3,190,159
|
|
642,000
|
|
632,000
|
Other
|
2
|
|
3
|
|
13
|
|
6
|
|
5,688
|
|
5,544
|
|
438,000
|
|
924,000
|
Total
|
1,245
|
|
1,263
|
|
21,293
|
|
17,885
|
|
$
9,194,876
|
|
8,171,444
|
|
$ 432,000
|
|
457,000
|
Of the total homes listed above, 74 homes with a dollar value of
$40 million and an average sales
price of $540,000 represent homes in
eight active communities from unconsolidated entities for the three
months ended May 31, 2024, compared
to 73 homes with a dollar value of $37
million and an average sales price of $507,000 in seven active communities for the
three months ended May 31, 2023.
|
For the Six Months
Ended May 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Deliveries:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
10,253
|
|
8,748
|
|
$
4,172,739
|
|
3,858,332
|
|
$
407,000
|
|
441,000
|
Central
|
7,748
|
|
6,439
|
|
3,101,695
|
|
2,804,582
|
|
400,000
|
|
436,000
|
Texas
|
8,932
|
|
7,329
|
|
2,264,683
|
|
2,154,490
|
|
254,000
|
|
294,000
|
West
|
9,530
|
|
8,207
|
|
5,785,395
|
|
4,967,027
|
|
607,000
|
|
605,000
|
Other
|
25
|
|
10
|
|
13,160
|
|
8,566
|
|
526,000
|
|
857,000
|
Total
|
36,488
|
|
30,733
|
|
$
15,337,672
|
|
13,792,997
|
|
$
420,000
|
|
449,000
|
Of the total homes delivered listed above, 147 homes with a
dollar value of $78 million and an
average sales price of $532,000
represent home deliveries from unconsolidated entities for the six
months ended May 31, 2024, compared
to 135 home deliveries with a dollar value of $63 million and an average sales price of
$464,000 for the six months ended
May 31, 2023.
|
For the Six Months
Ended May 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
New
Orders:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
9,526
|
|
8,863
|
|
$
3,931,479
|
|
3,840,881
|
|
$
413,000
|
|
433,000
|
Central
|
9,606
|
|
6,821
|
|
3,862,786
|
|
2,877,097
|
|
402,000
|
|
422,000
|
Texas
|
9,644
|
|
6,874
|
|
2,452,391
|
|
1,959,213
|
|
254,000
|
|
285,000
|
West
|
10,662
|
|
9,510
|
|
6,675,384
|
|
5,898,485
|
|
626,000
|
|
620,000
|
Other
|
31
|
|
11
|
|
15,218
|
|
9,229
|
|
491,000
|
|
839,000
|
Total
|
39,469
|
|
32,079
|
|
$
16,937,258
|
|
14,584,905
|
|
$
429,000
|
|
455,000
|
Of the total new orders listed above, 120 homes with a dollar
value of $65 million and an average
sales price of $543,000 represent new
orders from unconsolidated entities for the six months ended
May 31, 2024, compared to 170 new
orders with a dollar value of $75
million and an average sales price of $443,000 for the six months ended May 31, 2023.
|
At May
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Backlog:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
5,853
|
|
8,276
|
|
$
2,467,062
|
|
3,565,256
|
|
$
422,000
|
|
431,000
|
Central
|
5,021
|
|
4,951
|
|
2,136,707
|
|
2,165,563
|
|
426,000
|
|
437,000
|
Texas
|
2,607
|
|
2,242
|
|
663,648
|
|
641,806
|
|
255,000
|
|
286,000
|
West
|
4,383
|
|
4,743
|
|
2,962,332
|
|
3,157,935
|
|
676,000
|
|
666,000
|
Other
|
9
|
|
2
|
|
3,586
|
|
1,828
|
|
398,000
|
|
914,000
|
Total
|
17,873
|
|
20,214
|
|
$
8,233,335
|
|
9,532,388
|
|
$
461,000
|
|
472,000
|
Of the total homes in backlog listed above, 120 homes with a
backlog dollar value of $62 million
and an average sales price of $513,000 represent the backlog from
unconsolidated entities at May 31,
2024, compared to 201 homes with a backlog dollar value of
$90 million and an average sales
price of $450,000 at May 31, 2023.
LENNAR CORPORATION
AND SUBSIDIARIES Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
(unaudited)
|
|
May 31,
2024
|
|
November 30,
2023
|
ASSETS
|
|
|
|
Homebuilding:
|
|
|
|
Cash and cash
equivalents
|
$
3,597,493
|
|
6,273,724
|
Restricted
cash
|
11,572
|
|
13,481
|
Receivables,
net
|
898,301
|
|
887,992
|
Inventories:
|
|
|
|
Finished homes and
construction in progress
|
11,729,673
|
|
10,455,666
|
Land and land under
development
|
4,418,285
|
|
4,904,541
|
Inventory
owned
|
16,147,958
|
|
15,360,207
|
Consolidated inventory
not owned
|
3,753,542
|
|
2,992,528
|
Inventory owned and
consolidated inventory not owned
|
19,901,500
|
|
18,352,735
|
Deposits and
pre-acquisition costs on real estate
|
2,754,819
|
|
2,002,154
|
Investments in
unconsolidated entities
|
1,263,905
|
|
1,143,909
|
Goodwill
|
3,442,359
|
|
3,442,359
|
Other
assets
|
1,540,507
|
|
1,512,038
|
|
33,410,456
|
|
33,628,392
|
Financial
Services
|
3,043,941
|
|
3,566,546
|
Multifamily
|
1,377,243
|
|
1,381,513
|
Lennar
Other
|
836,030
|
|
657,852
|
Total
assets
|
$
38,667,670
|
|
39,234,303
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Homebuilding:
|
|
|
|
Accounts
payable
|
$
1,727,358
|
|
1,631,401
|
Liabilities related to
consolidated inventory not owned
|
3,227,478
|
|
2,540,894
|
Senior notes and other
debts payable, net
|
2,241,507
|
|
2,816,482
|
Other
liabilities
|
2,513,173
|
|
2,739,217
|
|
9,709,516
|
|
9,727,994
|
Financial
Services
|
1,583,363
|
|
2,447,039
|
Multifamily
|
246,776
|
|
278,177
|
Lennar
Other
|
112,262
|
|
79,127
|
Total
liabilities
|
11,651,917
|
|
12,532,337
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred
stock
|
—
|
|
—
|
Class A common stock
of $0.10 par value
|
25,996
|
|
25,848
|
Class B common stock
of $0.10 par value
|
3,660
|
|
3,660
|
Additional paid-in
capital
|
5,674,733
|
|
5,570,009
|
Retained
earnings
|
23,764,695
|
|
22,369,368
|
Treasury
stock
|
(2,597,806)
|
|
(1,393,100)
|
Accumulated other
comprehensive income
|
6,596
|
|
4,879
|
Total stockholders'
equity
|
26,877,874
|
|
26,580,664
|
Noncontrolling
interests
|
137,879
|
|
121,302
|
Total
equity
|
27,015,753
|
|
26,701,966
|
Total liabilities
and equity
|
$
38,667,670
|
|
39,234,303
|
LENNAR CORPORATION
AND SUBSIDIARIES Supplemental Data
(Dollars in thousands)
(unaudited)
|
|
|
|
|
|
|
|
May 31,
2024
|
|
November 30,
2023
|
|
May 31,
2023
|
Homebuilding
debt
|
$
2,241,507
|
|
2,816,482
|
|
3,852,258
|
Stockholders'
equity
|
26,877,874
|
|
26,580,664
|
|
25,015,145
|
Total
capital
|
$
29,119,381
|
|
29,397,146
|
|
28,867,403
|
Homebuilding debt to
total capital
|
7.7 %
|
|
9.6 %
|
|
13.3 %
|
|
|
|
|
|
|
Homebuilding
debt
|
$
2,241,507
|
|
2,816,482
|
|
3,852,258
|
Less: Homebuilding cash
and cash equivalents
|
3,597,493
|
|
6,273,724
|
|
4,004,679
|
Net homebuilding
debt
|
$
(1,355,986)
|
|
(3,457,242)
|
|
(152,421)
|
Net homebuilding
debt to total capital (1)
|
(5.3) %
|
|
(15.0) %
|
|
(0.6) %
|
|
|
(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-2024-results-302174646.html
SOURCE Lennar Corporation