MIAMI, Dec. 16, 2020 /PRNewswire/ --
2020 Fourth Quarter
- Net earnings of $882.8
million, or $2.82 per diluted
share, compared to $674.3 million, or
$2.13 per diluted share
- Deliveries of 16,090 homes – down 2%
- New orders of 15,214 homes – up 16%; new orders dollar value
of $6.3 billion – up 22%
- Backlog of 18,821 homes – up 21%; backlog dollar value of
$7.8 billion – up 24%
- Revenues of $6.8 billion –
down 2%
- Homebuilding operating earnings of $1.1 billion, compared to $892.5 million
-
- Gross margin on home sales of 25.0%, compared to
21.5%
- S,G&A expenses as a % of revenues from home sales
improved to 7.5%, compared to 7.6%
- Net margin on home sales of 17.4%, the highest in the
Company's history, compared to 13.9%
- Financial Services operating earnings of $151.2 million, compared to $74.8 million
- Multifamily operating earnings of $26.7 million, compared to $3.7 million
- Lennar Other operating loss of $1.2
million, compared to earnings of $10.7 million
- Homebuilding cash and cash equivalents of $2.7 billion
- No borrowings under the Company's $2.4 billion revolving credit facility
- Retired $1.2 billion of homebuilding senior notes,
including all maturities that were due in fiscal year 2021
- Homebuilding debt to total capital of 24.9%, the lowest in
the Company's history
2020 Fiscal Year
- Net earnings, revenues, deliveries and new orders for 2020
were the highest in the Company's history
-
- Net earnings of $2.5 billion,
or $7.85 per diluted share, compared
to net earnings of $1.8 billion, or
$5.74 per diluted share
- Revenues of $22.5 billion – up
1%
- Deliveries of 52,925 homes – up 3%
- New orders of 56,169 homes – up 9%
- Paid off $2.1 billion of
homebuilding debt
-
- Retired $1.5 billion of homebuilding senior
notes
- Paid off approximately $600
million of other debts payable
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, 2020. Fourth quarter net earnings
attributable to Lennar in 2020 were $882.8
million, or $2.82 per diluted
share, compared to $674.3 million, or
$2.13 per diluted share in the fourth
quarter of 2019. Net earnings attributable to Lennar for the year
ended November 30, 2020 were
$2.5 billion, or $7.85 per diluted share, compared to $1.8 billion, or $5.74 per diluted share for the year ended
November 30, 2019.
Stuart Miller, Executive Chairman
of Lennar, said, "We are pleased to announce our results for the
fourth quarter where we achieved net earnings of $882.8 million, or $2.82 per diluted share, compared to $674.3 million, or $2.13 per diluted share in the prior year. Our
fourth quarter results benefited from the exceptional performance
of our core homebuilding and financial services businesses combined
with robust market conditions."
"The confluence of Millennials starting families and creating
households of their own, along with the pro-housing effects of the
COVID-19 pandemic, has materially strengthened demand. This surge
in demand for housing, combined with the market's inability to
produce sufficient homes to meet this demand, has exacerbated the
already well-documented undersupply of new and existing homes for
sale. Lennar is well positioned with its production-oriented, Everything's
Included® business model and strong land position to capitalize
on this industry supply shortage."
"During the quarter, our core homebuilding operations continued
to accelerate production, with starts up 28% over the prior year,
as we focused on catching up for production lost to COVID-19
earlier in the year. As expected, our new home deliveries in the
quarter decreased 2% from last year, but our focus on maximizing
pricing power led to a 25.0% gross margin, a 350-basis point
increase over the prior year, and a 17.4% net margin, an all-time
high for the Company. In addition, our financial services business
had an outstanding quarter with earnings of $151.2 million, an all-time quarterly high."
Rick Beckwitt, Co-Chief Executive
Officer and Co-President of Lennar, said, "In the fourth quarter,
we continued to focus on cash flow and returns. We executed on our
previously stated focus of improving our controlled homesite
percentage which increased by 600 basis points to 39% at the end of
the fourth quarter from 33% last year, while reducing our years
owned supply of homesites to 3.5 years from 4.1 years."
"During the quarter and fiscal year, we generated strong
homebuilding cash flows of $2.0
billion and $3.8 billion,
respectively, paid off debt of $1.2
billion and $2.1 billion,
respectively, including all of our senior debt due in fiscal 2021,
and had no borrowings under our $2.4
billion revolving credit facility at quarter end. We ended
the quarter with $2.7 billion of cash
and homebuilding debt to capital and net debt to capital of 24.9%
and 15.3%, respectively, both all-time lows."
Jon Jaffe, Co-Chief Executive
Officer and Co-President of Lennar, said, "Our sales pace continued
to accelerate in the fourth quarter with strong sales in all of our
major markets and we generated 4.3 sales per community, a 27%
increase year-over-year. This sales improvement could have been
even stronger if we had a singular focus on volume, but instead, we
balanced sales, up 16% year-over-year, and production to drive
growth in gross margin and cash flow, while allowing price
appreciation to cover future cost escalation."
"Our laser focus on reducing construction costs helped drive
excellent margins for the quarter. Additionally, our focus on
improving our SG&A leverage, combined with the benefits of our
technology efforts, resulted in an SG&A percentage of 7.5%, an
all-time quarterly low."
Mr. Miller concluded, "The housing market has proven to be
very strong and we expect it
to continue to be a significant driver in the recovery of the
overall economy over the next several years. We thank all of our
associates and trade partners for their continued focus and
dedication to ensure that we deliver high quality and safe homes
during this pandemic. With an excellent balance sheet, strong cash
flow generation and continued execution of our core operating
strategies, we are well positioned for an even stronger 2021 with
projected deliveries of 62,000
to 64,000 homes with a gross
margin of 23.75% to 24.0%."
RESULTS OF OPERATIONS
THREE MONTHS ENDED NOVEMBER 30, 2020 COMPARED TO
THREE
MONTHS ENDED NOVEMBER 30,
2019
Homebuilding
Revenues from home sales decreased 2% in the fourth quarter of
2020 to $6.3 billion from
$6.4 billion in the fourth quarter of
2019. Revenues were lower primarily due to a 2% decrease in the
number of home deliveries, excluding unconsolidated entities. New
home deliveries, excluding unconsolidated entities, decreased to
16,038 homes in the fourth quarter of 2020 from 16,391 homes in the
fourth quarter of 2019. The decrease in deliveries in the fourth
quarter of 2020 was due to production lost to COVID-19 in the
second quarter. The average sales price of homes delivered,
excluding unconsolidated entities, remained consistent at
$393,000 in the fourth quarter of
2020 compared to the fourth quarter of 2019.
Gross margins on home sales were $1.6
billion, or 25.0%, in the fourth quarter of 2020, compared
to $1.4 billion, or 21.5%, in the
fourth quarter of 2019. Gross margin percentage on home sales
increased primarily due to the Company's focus on reducing
construction costs combined with favorable market conditions. Loss
on land sales in the fourth quarter of 2020 was $27.2 million, primarily due to a change in
strategy with three land assets that resulted in
impairments.
Selling, general and administrative expenses were $475.1 million in the fourth quarter of 2020,
compared to $491.5 million in the
fourth quarter of 2019. As a percentage of revenues from home
sales, selling, general and administrative expenses improved to
7.5% in the fourth quarter of 2020, from 7.6% in the fourth quarter
of 2019, as the Company focused on improving its leverage combined
with the benefits of the Company's technology efforts.
Financial Services
Operating earnings for the Financial Services segment were
$151.2 million in the fourth
quarter of 2020, compared to $74.8
million ($81.2 million
net of noncontrolling interests) in the fourth quarter of 2019.
Operating earnings increased due to an improvement in the mortgage
business as a result of an increase in margin and volume. Additionally, operating
earnings of the Company's title business increased primarily due to
higher volume.
Other Ancillary Businesses
Operating earnings for the Multifamily segment were $26.7 million in the fourth quarter of 2020,
compared to $3.7 million
($4.8 million net of noncontrolling
interests) in the fourth quarter of 2019. Operating loss for the
Lennar Other segment was $1.2 million in the fourth quarter of 2020,
compared to operating earnings of $10.7 million in the fourth quarter of
2019.
RESULTS OF OPERATIONS
YEAR ENDED NOVEMBER 30,
2020 COMPARED TO
YEAR ENDED NOVEMBER 30, 2019
Homebuilding
Revenues from home sales increased 1% in the year ended
November 30, 2020 to $20.8 billion from $20.6
billion in the year ended November
30, 2019. Revenues were higher primarily due to a 3%
increase in the number of home deliveries, excluding unconsolidated
entities, partially offset by a 1% decrease in the average sales
price of homes delivered. New home deliveries, excluding
unconsolidated entities, increased to 52,813 homes in the year
ended November 30, 2020 from 51,412
homes in the year ended November 30,
2019, as a result of an increase in home deliveries in the
Texas and West segments. The
average sales price of homes delivered, excluding unconsolidated
entities, decreased to $395,000 in
the year ended November 30, 2020 from
$400,000 in the year ended
November 30, 2019. The decrease in
average sales price primarily resulted from continuing to shift to
lower-priced communities and regional product mix.
Gross margins on home sales were $4.7
billion, or 22.8%, in the year ended November 30, 2020, compared to $4.2 billion, or 20.6%, in the year ended
November 30, 2019. The gross margin
percentage on home sales increased primarily due to the
Company's continued focus on reducing construction costs combined
with favorable market conditions. Loss on land sales in the year
ended November 30, 2020 was
$49.1 million, primarily due to a
write-off of costs in the second quarter as a result of Lennar not
moving forward with a naval base development in Concord, California, northeast of San Francisco and a change in strategy with
three land assets that resulted in impairments in the fourth
quarter.
Selling, general and administrative expenses were $1.7 billion in both years ended November
30, 2020 and 2019. As a percentage of revenues
from home sales, selling, general and administrative expenses
improved to 8.1% in the year ended November
30, 2020, from 8.3% in the year ended November 30, 2019, due to improved operating
leverage as a result of an increase in home deliveries combined
with the benefits of the Company's technology efforts.
Financial Services
Operating earnings for the Financial Services segment were
$481.0 million ($495.0 million net of noncontrolling interests)
in the year ended November 30, 2020,
compared to $224.6 million
($244.3 million net of noncontrolling
interests) in the year ended November 30,
2019. Operating earnings increased due to an improvement in
the mortgage and title businesses as a result of an increase in
volume and margin, as well as reductions in loan origination costs.
Additionally, in the second quarter of 2020, the Financial Services
segment recorded a $61.4 million gain
on the deconsolidation of a previously consolidated entity.
Other Ancillary Businesses
Operating earnings for the Multifamily segment were $22.7 million in the year ended November 30, 2020, compared to operating earnings
of $16.4 million ($18.1 million net of noncontrolling interests) in
the year ended November 30, 2019.
Operating loss for the Lennar Other segment was $10.3 million in the year ended November 30, 2020, compared to operating earnings
of $31.5 million ($32.0 million net of noncontrolling interests) in
the year ended November 30, 2019.
Debt Transactions
In the fourth quarter of 2020, the Company retired $1.2 billion of senior notes which included
the redemption of $300 million aggregate principal amount of its
2.95% senior notes due November 2020
and early retirement of $400 million
aggregate principal amount of its 8.375% senior notes due
January 2021 and $500 million aggregate principal amount of its
4.75% senior notes due April
2021.
During the year ended November 30,
2020, the Company retired $1.5
billion of senior notes which included those senior notes
described above and the redemption of $300 million aggregate principal amount of its
6.625% senior notes due May 2020. The
redemption price for each issue of senior notes, which was paid in
cash, was 100% of the principal amount plus accrued but unpaid
interest and prepayment premiums.
Tax Rate
For the years ended November 30,
2020 and 2019, the Company had a tax provision of
$656.2 million and $592.2 million, respectively, which resulted in
an overall effective income tax rate of 21.0% and 24.3%,
respectively. The reduction in the overall effective income tax
rate was primarily due to the extension of the new energy
efficient home tax credit during the first quarter of 2020.
Liquidity
At November 30, 2020, the Company had $2.7 billion of Homebuilding cash and cash
equivalents and no outstanding borrowings under its $2.4 billion revolving credit facility, thereby
providing $5.1 billion of available
capacity.
2021 Guidance
The following are the Company's expected results of its
homebuilding and financial services activities for the first quarter of 2021:
New Orders
|
14,500 -
14,800
|
Deliveries
|
12,200 -
12,500
|
Average Sales
Price
|
$390,000
|
Gross Margin % on Home
Sales
|
23.5% -
23.75%
|
S,G&A as a % of
Home Sales
|
8.9% -
9.0%
|
Financial Services
Operating Earnings
|
$110 million - $115
million
|
The following are the Company's expected results of its
homebuilding and financial services activities for fiscal year
2021:
Deliveries
|
62,000 -
64,000
|
Average Sales
Price
|
$386,000 -
$388,000
|
Gross Margin % on Home
Sales
|
23.75% -
24.0%
|
S,G&A as a % of
Home Sales
|
7.8% -
8.0%
|
Financial Services
Operating Earnings
|
$400 million - $425
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 awareness that
there are many risks and uncertainties inherent in our business
that could cause actual results and events to differ materially
from those anticipated by the forward-looking statements. Important
factors that could cause such differences include the potential
negative impact to our business of the ongoing coronavirus
(COVID-19) pandemic, the duration, impact and severity of which is
highly uncertain; slowdowns in real estate markets in regions where
we have significant Homebuilding or Multifamily development
activities; increases in operating costs, including costs related
to construction materials, labor, real estate taxes and insurance,
which exceed our ability to increase prices, both in our
Homebuilding and Multifamily businesses; reduced availability of
mortgage financing or increased interest rates; decreased demand
for our homes or Multifamily rental apartments; natural disasters
or catastrophic events for which our insurance may not provide
adequate coverage; our inability to successfully execute our
strategies, including our land lighter strategy; 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; 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, 2019. 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 17, 2020. The call will be
broadcast live on the Internet and can be accessed through the
Company's website at www.lennar.com. If you are unable to
participate in the conference call, the call will be archived at
www.lennar.com for 90 days. A replay of the conference call will
also be available later that day by calling 203-369-3605 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,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenues:
|
|
|
|
|
|
|
|
Homebuilding
|
$
|
6,354,416
|
|
|
6,534,898
|
|
|
20,981,136
|
|
|
20,793,216
|
|
Financial
Services
|
258,319
|
|
|
252,781
|
|
|
890,311
|
|
|
824,810
|
|
Multifamily
|
205,424
|
|
|
175,936
|
|
|
576,328
|
|
|
604,700
|
|
Lennar
Other
|
7,731
|
|
|
7,916
|
|
|
41,079
|
|
|
36,835
|
|
Total
revenues
|
$
|
6,825,890
|
|
|
6,971,531
|
|
|
22,488,854
|
|
|
22,259,561
|
|
|
|
|
|
|
|
|
|
Homebuilding
operating earnings
|
$
|
1,083,404
|
|
|
892,539
|
|
|
2,988,907
|
|
|
2,502,905
|
|
Financial Services
operating earnings
|
151,230
|
|
|
74,755
|
|
|
480,952
|
|
|
224,642
|
|
Multifamily operating
earnings
|
26,682
|
|
|
3,690
|
|
|
22,681
|
|
|
16,390
|
|
Lennar Other
operating earnings (loss)
|
(1,211)
|
|
|
10,745
|
|
|
(10,334)
|
|
|
31,469
|
|
Corporate general and
administrative expenses
|
(95,459)
|
|
|
(93,043)
|
|
|
(358,418)
|
|
|
(341,114)
|
|
Earnings before
income taxes
|
1,164,646
|
|
|
888,686
|
|
|
3,123,788
|
|
|
2,434,292
|
|
Provision for income
taxes
|
(273,737)
|
|
|
(217,503)
|
|
|
(656,235)
|
|
|
(592,173)
|
|
Net earnings
(including net earnings (loss) attributable to noncontrolling
interests)
|
890,909
|
|
|
671,183
|
|
|
2,467,553
|
|
|
1,842,119
|
|
Less: Net earnings
(loss) attributable to noncontrolling interests
|
8,149
|
|
|
(3,121)
|
|
|
2,517
|
|
|
(6,933)
|
|
Net earnings
attributable to Lennar
|
$
|
882,760
|
|
|
674,304
|
|
|
2,465,036
|
|
|
1,849,052
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
309,151
|
|
|
313,904
|
|
|
309,406
|
|
|
318,419
|
|
Diluted
|
309,151
|
|
|
313,906
|
|
|
309,407
|
|
|
318,422
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
2.82
|
|
|
2.13
|
|
|
7.88
|
|
|
5.76
|
|
Diluted
|
$
|
2.82
|
|
|
2.13
|
|
|
7.85
|
|
|
5.74
|
|
|
|
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
|
|
|
Interest incurred
(1)
|
$
|
81,056
|
|
|
101,750
|
|
|
353,403
|
|
|
422,710
|
|
|
|
|
|
|
|
|
|
EBIT
(2):
|
|
|
|
|
|
|
|
Net earnings
attributable to Lennar
|
$
|
882,760
|
|
|
674,304
|
|
|
2,465,036
|
|
|
1,849,052
|
|
Provision for income
taxes
|
273,737
|
|
|
217,503
|
|
|
656,235
|
|
|
592,173
|
|
Interest expense
included in:
|
|
|
|
|
|
|
|
Costs of homes
sold
|
101,465
|
|
|
116,387
|
|
|
349,109
|
|
|
371,821
|
|
Costs of land
sold
|
1,026
|
|
|
1,024
|
|
|
2,594
|
|
|
5,554
|
|
Homebuilding other
income (expense), net
|
5,246
|
|
|
6,108
|
|
|
22,401
|
|
|
17,620
|
|
Total interest
expense
|
107,737
|
|
|
123,519
|
|
|
374,104
|
|
|
394,995
|
|
EBIT
|
$
|
1,264,234
|
|
|
1,015,326
|
|
|
3,495,375
|
|
|
2,836,220
|
|
|
|
(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,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Homebuilding
revenues:
|
|
|
|
|
|
|
|
Sales of
homes
|
$
|
6,306,947
|
|
|
6,445,208
|
|
|
20,840,159
|
|
|
20,560,147
|
|
Sales of
land
|
42,342
|
|
|
68,991
|
|
|
123,365
|
|
|
203,567
|
|
Other
homebuilding
|
5,127
|
|
|
20,699
|
|
|
17,612
|
|
|
29,502
|
|
Total
revenues
|
6,354,416
|
|
|
6,534,898
|
|
|
20,981,136
|
|
|
20,793,216
|
|
|
|
|
|
|
|
|
|
Homebuilding costs
and expenses:
|
|
|
|
|
|
|
|
Costs of homes
sold
|
4,732,705
|
|
|
5,059,349
|
|
|
16,092,069
|
|
|
16,323,989
|
|
Costs of land
sold
|
69,581
|
|
|
86,841
|
|
|
172,480
|
|
|
206,526
|
|
Selling, general and
administrative
|
475,063
|
|
|
491,484
|
|
|
1,697,095
|
|
|
1,715,185
|
|
Total costs and
expenses
|
5,277,349
|
|
|
5,637,674
|
|
|
17,961,644
|
|
|
18,245,700
|
|
Homebuilding net
margins
|
1,077,067
|
|
|
897,224
|
|
|
3,019,492
|
|
|
2,547,516
|
|
Homebuilding equity
in earnings (loss) from unconsolidated entities
|
19,241
|
|
|
(8,672)
|
|
|
(836)
|
|
|
(13,273)
|
|
Homebuilding other
income (expense), net
|
(12,904)
|
|
|
3,987
|
|
|
(29,749)
|
|
|
(31,338)
|
|
Homebuilding
operating earnings
|
$
|
1,083,404
|
|
|
892,539
|
|
|
2,988,907
|
|
|
2,502,905
|
|
|
|
|
|
|
|
|
|
Financial Services
revenues
|
$
|
258,319
|
|
|
252,781
|
|
|
890,311
|
|
|
824,810
|
|
Financial Services
costs and expenses
|
107,089
|
|
|
178,026
|
|
|
470,777
|
|
|
600,168
|
|
Financial Services
gain on deconsolidation
|
—
|
|
|
—
|
|
|
61,418
|
|
|
—
|
|
Financial Services
operating earnings
|
$
|
151,230
|
|
|
74,755
|
|
|
480,952
|
|
|
224,642
|
|
|
|
|
|
|
|
|
|
Multifamily
revenues
|
$
|
205,424
|
|
|
175,936
|
|
|
576,328
|
|
|
604,700
|
|
Multifamily costs and
expenses
|
195,974
|
|
|
168,094
|
|
|
575,581
|
|
|
599,604
|
|
Multifamily equity in
earnings (loss) from unconsolidated entities and other
gain
|
17,232
|
|
|
(4,152)
|
|
|
21,934
|
|
|
11,294
|
|
Multifamily
operating earnings
|
$
|
26,682
|
|
|
3,690
|
|
|
22,681
|
|
|
16,390
|
|
|
|
|
|
|
|
|
|
Lennar Other
revenues
|
$
|
7,731
|
|
|
7,916
|
|
|
41,079
|
|
|
36,835
|
|
Lennar Other costs
and expenses
|
3,180
|
|
|
4,244
|
|
|
6,744
|
|
|
11,794
|
|
Lennar Other equity
in earnings (loss) from unconsolidated entities
|
(6,325)
|
|
|
3,117
|
|
|
(35,037)
|
|
|
15,372
|
|
Lennar Other income
(expense), net
|
563
|
|
|
3,956
|
|
|
(9,632)
|
|
|
(8,944)
|
|
Lennar Other
operating earnings (loss)
|
$
|
(1,211)
|
|
|
10,745
|
|
|
(10,334)
|
|
|
31,469
|
|
|
|
|
LENNAR CORPORATION
AND SUBSIDIARIES
|
Summary of Deliveries
and New Orders
|
(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: Florida, New Jersey, Pennsylvania
and South Carolina
|
Central: Georgia, Illinois, Indiana,
Maryland, Minnesota, North Carolina, Tennessee and
Virginia
|
Texas:
Texas
|
West: Arizona, California, Colorado,
Nevada, Oregon, Utah and Washington
|
Other: Urban divisions
|
|
|
For the Three
Months Ended November 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Deliveries:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
5,465
|
|
|
5,749
|
|
|
$
|
1,801,192
|
|
|
1,870,735
|
|
|
$
|
330,000
|
|
|
325,000
|
|
Central
|
3,295
|
|
|
3,606
|
|
|
1,250,769
|
|
|
1,366,549
|
|
|
380,000
|
|
|
379,000
|
|
Texas
|
2,788
|
|
|
2,533
|
|
|
763,388
|
|
|
730,021
|
|
|
274,000
|
|
|
288,000
|
|
West
|
4,541
|
|
|
4,511
|
|
|
2,506,760
|
|
|
2,464,909
|
|
|
552,000
|
|
|
546,000
|
|
Other
|
1
|
|
|
21
|
|
|
880
|
|
|
24,126
|
|
|
880,000
|
|
|
1,149,000
|
|
Total
|
16,090
|
|
|
16,420
|
|
|
$
|
6,322,989
|
|
|
6,456,340
|
|
|
$
|
393,000
|
|
|
393,000
|
|
Of the total homes delivered listed above, 52 homes with a
dollar value of $16.0 million and an
average sales price of $308,000
represent home deliveries from unconsolidated entities for the
three months ended November 30, 2020,
compared to 29 home deliveries with a dollar value of $11.1 million and an average sales price of
$384,000 for the three months ended
November 30, 2019.
|
At November
30,
|
|
For the Three
Months Ended November 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
New
Orders:
|
Active
Communities
|
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
323
|
|
|
346
|
|
|
4,787
|
|
|
4,440
|
|
|
$
|
1,743,826
|
|
|
1,477,308
|
|
|
$
|
364,000
|
|
|
333,000
|
|
Central
|
285
|
|
|
337
|
|
|
3,164
|
|
|
2,646
|
|
|
1,260,761
|
|
|
1,012,571
|
|
|
398,000
|
|
|
383,000
|
|
Texas
|
213
|
|
|
238
|
|
|
2,751
|
|
|
2,146
|
|
|
765,238
|
|
|
617,132
|
|
|
278,000
|
|
|
288,000
|
|
West
|
353
|
|
|
359
|
|
|
4,509
|
|
|
3,854
|
|
|
2,497,449
|
|
|
2,046,997
|
|
|
554,000
|
|
|
531,000
|
|
Other
|
3
|
|
|
3
|
|
|
3
|
|
|
3
|
|
|
2,728
|
|
|
6,457
|
|
|
909,000
|
|
|
2,152,000
|
|
Total
|
1,177
|
|
|
1,283
|
|
|
15,214
|
|
|
13,089
|
|
|
$
|
6,270,002
|
|
|
5,160,465
|
|
|
$
|
412,000
|
|
|
394,000
|
|
Of the total new orders listed above, 34 homes with a dollar
value of $10.5 million and an average
sales price of $309,000 represent new
orders in four active communities from unconsolidated entities for
the three months ended November 30,
2020, compared to 35 new orders from unconsolidated entities
with a dollar value of $11.5 million
and an average sales price of $330,000 in five active communities for the three
months ended November 30, 2019.
|
For the Years
Ended November 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Deliveries:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
16,976
|
|
|
17,251
|
|
|
$
|
5,725,481
|
|
|
5,708,859
|
|
|
$
|
337,000
|
|
|
331,000
|
|
Central
|
10,684
|
|
|
10,799
|
|
|
4,084,514
|
|
|
4,089,840
|
|
|
382,000
|
|
|
379,000
|
|
Texas
|
9,425
|
|
|
8,193
|
|
|
2,640,762
|
|
|
2,526,364
|
|
|
280,000
|
|
|
308,000
|
|
West
|
15,814
|
|
|
15,178
|
|
|
8,400,943
|
|
|
8,203,790
|
|
|
531,000
|
|
|
541,000
|
|
Other
|
26
|
|
|
70
|
|
|
24,522
|
|
|
67,439
|
|
|
943,000
|
|
|
963,000
|
|
Total
|
52,925
|
|
|
51,491
|
|
|
$
|
20,876,222
|
|
|
20,596,292
|
|
|
$
|
394,000
|
|
|
400,000
|
|
Of the total homes delivered listed above, 112 homes with a
dollar value of $36.1 million and an
average sales price of $322,000
represent home deliveries from unconsolidated entities for the year
ended November 30, 2020, compared to
79 home deliveries with a dollar value of $36.1 million and an average sales price of
$458,000 for the year ended
November 30, 2019.
New
Orders:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
17,299
|
|
|
17,196
|
|
|
$
|
6,010,047
|
|
|
5,720,017
|
|
|
$
|
347,000
|
|
|
333,000
|
|
Central
|
11,905
|
|
|
10,620
|
|
|
4,602,720
|
|
|
4,032,899
|
|
|
387,000
|
|
|
380,000
|
|
Texas
|
10,078
|
|
|
8,215
|
|
|
2,752,008
|
|
|
2,478,981
|
|
|
273,000
|
|
|
302,000
|
|
West
|
16,868
|
|
|
15,335
|
|
|
9,005,958
|
|
|
8,024,755
|
|
|
534,000
|
|
|
523,000
|
|
Other
|
19
|
|
|
73
|
|
|
17,917
|
|
|
66,903
|
|
|
943,000
|
|
|
916,000
|
|
Total
|
56,169
|
|
|
51,439
|
|
|
$
|
22,388,650
|
|
|
20,323,555
|
|
|
$
|
399,000
|
|
|
395,000
|
|
Of the total new orders listed above, 119 homes with a dollar
value of $37.3 million and an average
sales price of $314,000 represent new
orders from unconsolidated entities for the year ended November 30, 2020, compared to 103 new orders
with a dollar value of $43.7 million
and an average sales price of $424,000 for the year ended November 30, 2019.
|
|
|
LENNAR CORPORATION
AND SUBSIDIARIES
|
Summary of
Backlog
|
(Dollars in
thousands, except average sales price)
|
(unaudited)
|
|
|
November
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Backlog:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East (1)
|
6,013
|
|
|
5,690
|
|
|
$
|
2,310,935
|
|
|
2,026,369
|
|
|
$
|
384,000
|
|
|
356,000
|
|
Central
|
4,371
|
|
|
3,150
|
|
|
1,762,172
|
|
|
1,243,966
|
|
|
403,000
|
|
|
395,000
|
|
Texas
|
2,823
|
|
|
2,170
|
|
|
824,584
|
|
|
713,337
|
|
|
292,000
|
|
|
329,000
|
|
West
|
5,612
|
|
|
4,558
|
|
|
2,913,432
|
|
|
2,308,417
|
|
|
519,000
|
|
|
506,000
|
|
Other
|
2
|
|
|
9
|
|
|
1,848
|
|
|
8,453
|
|
|
924,000
|
|
|
939,000
|
|
Total
|
18,821
|
|
|
15,577
|
|
|
$
|
7,812,971
|
|
|
6,300,542
|
|
|
$
|
415,000
|
|
|
404,000
|
|
|
Of the total homes in
backlog listed above, 38 homes with a backlog dollar value of $11.5
million and an average sales price of $302,000 represent the
backlog from unconsolidated entities at November 30, 2020,
compared to 31 homes with a backlog dollar value of $10.2 million
and an average sales price of $328,000 at November 30,
2019.
|
|
(1)
|
During the year ended
November 30, 2019, the Company acquired 13 homes in
backlog.
|
|
|
|
LENNAR CORPORATION
AND SUBSIDIARIES
|
Condensed
Consolidated Balance Sheets
|
(In thousands, except
per share amounts)
|
(unaudited)
|
|
|
November
30,
|
|
2020
|
|
2019
|
ASSETS
|
|
|
|
Homebuilding:
|
|
|
|
Cash and cash
equivalents
|
$
|
2,703,986
|
|
|
1,200,832
|
|
Restricted
cash
|
15,211
|
|
|
9,698
|
|
Receivables,
net
|
298,671
|
|
|
329,124
|
|
Inventories:
|
|
|
|
Finished homes and
construction in progress
|
8,593,399
|
|
|
9,195,721
|
|
Land and land under
development
|
7,495,262
|
|
|
8,267,647
|
|
Consolidated inventory
not owned
|
836,567
|
|
|
313,139
|
|
Total
inventories
|
16,925,228
|
|
|
17,776,507
|
|
Investments in
unconsolidated entities
|
953,177
|
|
|
1,009,035
|
|
Goodwill
|
3,442,359
|
|
|
3,442,359
|
|
Other
assets
|
1,190,793
|
|
|
1,021,684
|
|
|
25,529,425
|
|
|
24,789,239
|
|
Financial
Services
|
2,776,987
|
|
|
3,006,024
|
|
Multifamily
|
1,175,908
|
|
|
1,068,831
|
|
Lennar
Other
|
452,857
|
|
|
495,417
|
|
Total
assets
|
$
|
29,935,177
|
|
|
29,359,511
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Homebuilding:
|
|
|
|
Accounts
payable
|
$
|
1,037,338
|
|
|
1,069,179
|
|
Liabilities related to
consolidated inventory not owned
|
706,691
|
|
|
260,266
|
|
Senior notes and other
debts payable, net
|
5,955,758
|
|
|
7,776,638
|
|
Other
liabilities
|
2,225,864
|
|
|
1,969,082
|
|
|
9,925,651
|
|
|
11,075,165
|
|
Financial
Services
|
1,644,248
|
|
|
1,988,323
|
|
Multifamily
|
252,911
|
|
|
232,155
|
|
Lennar
Other
|
12,966
|
|
|
30,038
|
|
Total
liabilities
|
11,835,776
|
|
|
13,325,681
|
|
Stockholders'
equity:
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Class A common stock
of $0.10 par value
|
29,894
|
|
|
29,712
|
|
Class B common stock
of $0.10 par value
|
3,944
|
|
|
3,944
|
|
Additional paid-in
capital
|
8,676,056
|
|
|
8,578,219
|
|
Retained
earnings
|
10,564,994
|
|
|
8,295,001
|
|
Treasury
stock
|
(1,279,227)
|
|
|
(957,857)
|
|
Accumulated other
comprehensive income (loss)
|
(805)
|
|
|
498
|
|
Total stockholders'
equity
|
17,994,856
|
|
|
15,949,517
|
|
Noncontrolling
interests
|
104,545
|
|
|
84,313
|
|
Total
equity
|
18,099,401
|
|
|
16,033,830
|
|
Total liabilities
and equity
|
$
|
29,935,177
|
|
|
29,359,511
|
|
|
|
|
LENNAR CORPORATION
AND SUBSIDIARIES
|
Supplemental
Data
|
(Dollars in
thousands)
|
(unaudited)
|
|
|
November
30,
|
|
2020
|
|
2019
|
Homebuilding
debt
|
$
|
5,955,758
|
|
|
7,776,638
|
|
Stockholders'
equity
|
17,994,856
|
|
|
15,949,517
|
|
Total
capital
|
$
|
23,950,614
|
|
|
23,726,155
|
|
Homebuilding debt
to total capital
|
24.9
|
%
|
|
32.8
|
%
|
|
|
|
|
Homebuilding
debt
|
$
|
5,955,758
|
|
|
7,776,638
|
|
Less: Homebuilding
cash and cash equivalents
|
2,703,986
|
|
|
1,200,832
|
|
Net homebuilding
debt
|
$
|
3,251,772
|
|
|
6,575,806
|
|
Net homebuilding
debt to total capital (1)
|
15.3
|
%
|
|
29.2
|
%
|
|
|
(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.
|
View original
content:http://www.prnewswire.com/news-releases/lennar-reports-fourth-quarter-eps-of-2-82--301194528.html
SOURCE Lennar Corporation