LEN
$100.50
Lennar
($.92)
(.91%)
Earnings Details
3rd Quarter August 2021
Monday, September 20, 2021 4:30:00 PM
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Summary

Lennar Misses

Lennar (LEN) reported 3rd Quarter August 2021 earnings of $3.27 per share on revenue of $6.9 billion. The consensus earnings estimate was $3.24 per share on revenue of $7.3 billion. The Earnings Whisper number was $3.33 per share. Revenue grew 18.2% on a year-over-year basis.

The company said it expects fourth quarter revenue of approximately $8.01 billion. The current consensus revenue estimate is $8.98 billion for the quarter ending November 30, 2021.

Lennar Corp is a homebuilder and a provider of financial services. Its homebuilding operations include the construction and sale of single-family attached and detached homes, and to a lesser extent multi-level residential buildings.

Results
Reported Earnings
$3.27
Earnings Whisper
$3.33
Consensus Estimate
$3.24
Reported Revenue
$6.94 Bil
Revenue Estimate
$7.27 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Lennar Reports Third Quarter EPS of $4.52

MIAMI, Sept. 20, 2021 /PRNewswire/ --

  • Net earnings of $1.4 billion, or $4.52 per diluted share, compared to net earnings of $666.4 million, or $2.12 per diluted share – both up over 100%
    • Net earnings were $1.0 billion, or $3.27 per diluted share, excluding the mark to market gains on the Company's strategic investments
  • Deliveries of 15,199 homes – up 10%
  • New orders of 16,277 homes – up 5%; new orders dollar value of $7.5 billion – up 19%
  • Backlog of 25,819 homes – up 31%; backlog dollar value of $12.0 billion – up 52%
  • Revenues of $6.9 billion – up 18%
  • Homebuilding net margins of $1.3 billion, compared to $826.6 million
    • Gross margin on home sales of 27.3%, compared to 23.1%
    • S,G&A expenses as a % of revenues from home sales of 7.0%, compared to 8.0%
    • Net margin on home sales of 20.3%, compared to 15.1%
  • Financial Services operating earnings of $111.9 million, compared to operating earnings of $135.1 million
  • Multifamily operating loss of $9.4 million, compared to operating loss of $5.1 million
  • Lennar Other operating earnings of $492.0 million, compared to operating earnings of $8.0 million
  • Homebuilding cash and cash equivalents of $2.6 billion
  • Controlled homesites as a percentage of total owned and controlled homesites increased to 53%, compared to 35%
  • No borrowings under the Company's $2.5 billion revolving credit facility
  • Retired $300 million of homebuilding senior notes due December 2021
  • Homebuilding debt to total capital of 21.2%, compared to 29.5%
  • Repurchased 2.5 million of Lennar Class A common stock for $246.4 million at an average per share price of $98.53
  • S&P upgraded the Company to Investment Grade. The Company now has an Investment Grade rating from all three agencies.

Lennar Corporation (NYSE: LEN and LEN.B), one of the nation's leading homebuilders, today reported results for its third quarter ended August 31, 2021. Third quarter net earnings attributable to Lennar in 2021 were $1.4 billion, or $4.52 per diluted share, compared to third quarter net earnings attributable to Lennar in 2020 of $666.4 million, or $2.12 per diluted share.

Stuart Miller, Executive Chairman of Lennar, said, "During the third quarter, our company and the homebuilding industry as a whole continued to experience unprecedented supply chain challenges which we believe will continue into the foreseeable future. As a result, our third quarter deliveries of 15,199 homes were about 600 homes below the low end of our guidance. Additionally, we are adjusting our fourth quarter delivery guidance to, more or less, 18,000 homes, reflecting this supply chain constraint."

Mr. Miller continued, "Despite missing our delivery guidance, new home demand remains strong, even as the market reverts back to traditional seasonality. This is reflected in our 5% year over year sales growth and third quarter homebuilding gross margin of 27.3%, which was the highest quarterly percentage in the Company's history, and a 420 basis point improvement over the prior year. The improvement was driven by price appreciation as revenue per square foot increased 14% while cost per square foot only increased 8%. Our homebuilding S,G&A of 7.0% was the lowest quarterly percentage in the Company's history, even with the delivery shortfall, and reflects continued improvement as we incorporate technology driven innovation across our platform. Accordingly, our net margin was 20.3%, an all-time Company record, and was the primary driver of our third quarter net earnings of $1.0 billion, or $3.27 per diluted share, excluding mark to market gains on our public strategic technology investments."

"During the quarter, several of our strategic technology investments went public. Despite some of our investments currently trading at the lower end of their price ranges, they contributed about $500 million of mark to market gains during the quarter. This resulted in reported GAAP third quarter net earnings of $1.4 billion, or $4.52 per diluted share, compared to $666.4 million, or $2.12 per diluted share in the prior year."

"We ended the quarter with $2.6 billion in cash, no borrowings on our $2.5 billion revolver and a homebuilding debt to capital of 21.2%, an all-time Company low. Our land lighter model resulted in incremental cash flow generation during the third quarter which we used towards an early debt reduction of $300 million and the repurchase of about $250 million of our common stock. These transactions combined with our significant earnings contributed to a return on equity of over 20%."

Rick Beckwitt, Co-Chief Executive Officer and Co-President of Lennar, said, "Our third quarter community count ended flat year over year primarily due to land supply chain challenges as approvals for permits and entitlements have also been delayed. As a result, we believe our year end community count growth will be closer to 7% than our originally targeted 10% growth. However, we are still making excellent progress on our land light strategy as evidenced by our years owned supply of homesites improving to 3.3 years at the end of the third quarter from 3.8 years at last year's third quarter, and our controlled homesite percentage increasing to 53% from 35% for those same periods." 

Jon Jaffe, Co-Chief Executive Officer and Co-President of Lennar, said, "During the quarter, our homebuilding machine continued to be laser focused on production, managing carefully through the rapidly changing supply chain issues as they arose. Although supply chain issues are expected to continue, our long-standing Builder of Choice position and Everything's Included® business model should help to lessen the impact of these challenges. With that said, we also increased our quarterly starts pace to 4.9 homes per community in the third quarter from 4.2 homes per community last year, which will facilitate our growth expectations for 2022."

Mr. Miller concluded, "The housing market has proven to be strong in the current environment as demand continues to outstrip limited supply. Accordingly, both limited supply and production will prevent excess production and extend the strong housing market conditions. As we look ahead to our fourth quarter and consider the industry supply chain issues already noted, we expect to deliver about 18,000 homes while we expect homebuilding gross margins to be about 28.0%. With an excellent balance sheet and continued execution of our core operating strategies, we are extremely well positioned to end 2021 on a very strong note."

RESULTS OF OPERATIONS
THREE MONTHS ENDED AUGUST 31, 2021 COMPARED TO
THREE MONTHS ENDED AUGUST 31, 2020

Homebuilding

Revenues from home sales increased 19% in the third quarter of 2021 to $6.5 billion from $5.5 billion in the third quarter of 2020. Revenues were higher primarily due to a 10% increase in the number of home deliveries and an 8% increase in the average sales price. New home deliveries increased to 15,199 homes in the third quarter of 2021 from 13,842 homes in the third quarter of 2020. The average sales price of homes delivered was $428,000 in the third quarter of 2021, compared to $396,000 in the third quarter of 2020.

Gross margin on home sales were $1.8 billion, or 27.3%, in the third quarter of 2021, compared to $1.3 billion, or 23.1%, in the third quarter of 2020. The gross margin percentage on home sales increased primarily as a result of price appreciation as the increase in revenue per square foot outpaced the increase in cost per square foot.

Selling, general and administrative expenses were $453.7 million in the third quarter of 2021, compared to $435.9 million in the third quarter of 2020. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 7.0% in the third quarter of 2021, from 8.0% in the third quarter of 2020. This was the lowest percentage for a quarter in the Company's history primarily due to a decrease in broker commissions and benefits of the Company's technology efforts.

Financial Services

Operating earnings for the Financial Services segment were $111.9 million in the third quarter of 2021, compared to $135.1 million in the third quarter of 2020. The decrease in operating earnings was primarily due to lower mortgage net margins driven by an increase in competition. This was partially offset by an increase in title operating earnings due to higher volume and an increase in profit per transaction derived from technology initiatives.

Other Ancillary Businesses

Operating loss for the Multifamily segment was $9.4 million in the third quarter of 2021, compared to $5.1 million in the third quarter of 2020. Operating earnings for the Lennar Other segment was $492.0 million in the third quarter of 2021, compared to $8.0 million in the third quarter of 2020. In the third quarter of 2021, the Company recorded mark to market gains on its investments in newly public companies (Hippo, SmartRent and Blend) of $433 million and on its current investments (Opendoor and Sunnova) of $61 million.

RESULTS OF OPERATIONS
NINE MONTHS ENDED AUGUST 31, 2021 COMPARED TO
NINE MONTHS ENDED AUGUST 31, 2020

Homebuilding

Revenues from home sales increased 20% in the nine months ended August 31, 2021 to $17.4 billion from $14.5 billion in the nine months ended August 31, 2020. Revenues were higher primarily due to a 14% increase in the number of home deliveries and a 5% increase in the average sales price. New home deliveries increased to 42,006 homes in the nine months ended August 31, 2021 from 36,835 homes in the nine months ended August 31, 2020. The average sales price of homes delivered was $414,000 in the nine months ended August 31, 2021, compared to $395,000 in the nine months ended August 31, 2020.

Gross margin on home sales were $4.6 billion, or 26.2%, in the nine months ended August 31, 2021, compared to $3.2 billion or 21.8%, in the nine months ended August 31, 2020. The gross margin percentage on home sales increased primarily as a result of price appreciation as the increase in revenue per square foot outpaced the increase in cost per square foot. Gross margin on land sales in the nine months ended August 31, 2021 was $17.9 million, compared to a loss of $21.9 million in the nine months ended August 31, 2020. The loss in the nine months ended August 31, 2020 was primarily due to a write-off of costs in the second quarter of 2020 as a result of Lennar not moving forward with a naval base development in Concord, California, northeast of San Francisco.

Selling, general and administrative expenses were $1.3 billion in the nine months ended August 31, 2021, compared to $1.2 billion in the nine months ended August 31, 2020. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 7.6% in the nine months ended August 31, 2021, from 8.4% in the nine months ended August 31, 2020. The improvement was primarily due to a decrease in broker commissions and benefits of the Company's technology efforts.

Financial Services

Operating earnings for the Financial Services segment were $379.3 million in the nine months ended August 31, 2021, compared to $343.8 million in the nine months ended August 31, 2020 (which included $329.7 million operating earnings and an add back of $14.1 million net loss attributable to noncontrolling interests). The nine months ended August 31, 2020 included a $61.4 million gain on the deconsolidation of a previously consolidated entity. Excluding this gain, the improvement in operating earnings was primarily due to an increase in volume and margin in the mortgage and title businesses.

Other Ancillary Businesses

Operating earnings for the Multifamily segment were $12.1 million in the nine months ended August 31, 2021, compared to an operating loss of $4.0 million in the nine months ended August 31, 2020. Operating earnings for the Lennar Other segment were $909.2 million in the nine months ended August 31, 2021, compared to an operating loss of $9.1 million in the nine months ended August 31, 2020. The operating earnings for the nine months ended August 31, 2021 was primarily due to mark to market gains on strategic investments that went public during the nine months ended August 31, 2021 (Opendoor, Sunnova, Hippo, SmartRent and Blend) and the sale of our solar business to Sunnova.

Tax Rate

For the nine months ended August 31, 2021 and 2020, the Company had a tax provision of $975.4 million and $382.5 million, respectively, which resulted in an overall effective income tax rate of 23.1% and 19.5%, respectively. In the nine months ended August 31, 2021, the overall effective income tax rate was higher primarily due to the extension of the new energy efficient home tax credit during the first quarter of 2020.

Debt Transaction

During the third quarter of 2021, the Company retired $300 million aggregate principal amount of its 6.25% senior notes due December 2021.

Share Repurchases

During the third quarter of 2021, the Company repurchased a total of 2.5 million shares of its Class A common stock for $246.4 million at an average per share price of $98.53. For the nine months ended August 31, 2021, the Company repurchased a total of 4.0 million shares of its Class A common stock for $388.0 million at an average per share price of $96.73.

Liquidity

At August 31, 2021, the Company had $2.6 billion of Homebuilding cash and cash equivalents and no borrowings under its $2.5 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 fourth quarter of 2021:

New Orders

15,200 - 15,400

Deliveries

About 18,000

Average Sales Price

About $445,000

Gross Margin % on Home Sales

About 28.0%

S,G&A as a % of Home Sales

About 6.7%

Financial Services Operating Earnings

$95 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 statements relating to the homebuilding market and other markets in which we participate. You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those anticipated by the forward-looking statements. Important factors that could cause such differences include the potential negative impact to our business of the ongoing coronavirus (COVID-19) pandemic; slowdowns in real estate markets in regions where we have significant Homebuilding or Multifamily development activities; supply shortages and increased costs related to construction materials and labor; cost increases related to real estate taxes and insurance; reduced availability of mortgage financing, increased interest rates or increased competition in the mortgage industry; reductions in the market value of the Company's investments in public companies; decreased demand for our homes or Multifamily rental apartments; natural disasters or catastrophic events for which our insurance may not provide adequate coverage; our inability to successfully execute our strategies, including our land lighter strategy 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; 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, 2020. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

A conference call to discuss the Company's third quarter earnings will be held at 11:00 a.m. Eastern Time on Tuesday, September 21, 2021. 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 203-369-3035 and entering 5723593 as the confirmation number.

 

LENNAR CORPORATION AND SUBSIDIARIES

Selected Revenues and Operating Information

(In thousands, except per share amounts)

(unaudited)



Three Months Ended


Nine Months Ended


August 31,


August 31,


2021


2020


2021


2020

Revenues:








Homebuilding

$

6,558,509



5,505,120



17,529,606



14,626,720


Financial Services

206,973



237,068



669,789



631,992


Multifamily

167,921



115,170



476,837



370,904


Lennar Other

8,000



12,896



20,884



33,348


Total revenues

$

6,941,403



5,870,254



18,697,116



15,662,964










Homebuilding operating earnings

$

1,329,833



813,744



3,275,488



1,905,503


Financial Services operating earnings

112,083



135,079



379,610



329,722


Multifamily operating earnings (loss)

(9,393)



(5,148)



12,130



(4,001)


Lennar Other operating earnings (loss)

491,972



7,999



909,221



(9,123)


Corporate general and administrative expenses

(94,942)



(85,998)



(296,190)



(246,815)


Charitable foundation contribution

(15,199)



(6,663)



(42,006)



(16,144)


Earnings before income taxes

1,814,354



859,013



4,238,253



1,959,142


Provision for income taxes

(405,136)



(189,690)



(975,354)



(382,498)


Net earnings (including net earnings (loss) attributable to
noncontrolling interests)

1,409,218



669,323



3,262,899



1,576,644


Less: Net earnings (loss) attributable to noncontrolling
  interests

2,330



2,905



23,279



(5,632)


Net earnings attributable to Lennar

$

1,406,888



666,418



3,239,620



1,582,276










Average shares outstanding:








Basic

307,296



308,889



308,403



309,492


Diluted

307,296



308,890



308,403



309,493










Earnings per share:








Basic

$

4.52



2.13



10.37



5.05


Diluted

$

4.52



2.12



10.36



5.03










Supplemental information:








Interest incurred (1)

$

68,059



88,149



210,575



272,347










EBIT (2):








Net earnings attributable to Lennar

$

1,406,888



666,418



3,239,620



1,582,276


Provision for income taxes

405,136



189,690



975,354



382,498


Interest expense included in:








Costs of homes sold

85,180



93,124



248,888



247,644


Costs of land sold

1,093



1,035



2,285



1,567


Homebuilding other expense, net

4,928



5,478



15,128



17,155


Total interest expense

91,201



99,637



266,301



266,367


EBIT

$

1,903,225



955,745



4,481,275



2,231,141




(1)

Amount represents interest incurred related to homebuilding debt.

(2)

EBIT is a non-GAAP financial measure defined as earnings before interest and taxes. This financial measure has been presented because the Company finds it important and useful in evaluating its performance and believes that it helps readers of the Company's financial statements compare its operations with those of its competitors. Although management finds EBIT to be an important measure in conducting and evaluating the Company's operations, this measure has limitations as an analytical tool as it is not reflective of the actual profitability generated by the Company during the period. Management compensates for the limitations of using EBIT by using this non-GAAP measure only to supplement the Company's GAAP results. Due to the limitations discussed, EBIT should not be viewed in isolation, as it is not a substitute for GAAP measures.


 

LENNAR CORPORATION AND SUBSIDIARIES

Segment Information

(In thousands)

(unaudited)



Three Months Ended


Nine Months Ended


August 31,


August 31,


2021


2020


2021


2020

Homebuilding revenues:








Sales of homes

$

6,505,708



5,467,364



17,377,353



14,533,212


Sales of land

45,055



34,323



131,483



81,023


Other homebuilding

7,746



3,433



20,770



12,485


Total homebuilding revenues

6,558,509



5,505,120



17,529,606



14,626,720










Homebuilding costs and expenses:








Costs of homes sold

4,732,403



4,204,814



12,820,638



11,359,364


Costs of land sold

39,378



32,395



113,545



102,899


Selling, general and administrative

453,716



435,949



1,319,116



1,222,032


Total homebuilding costs and expenses

5,225,497



4,673,158



14,253,299



12,684,295


Homebuilding net margins

1,333,012



831,962



3,276,307



1,942,425


Homebuilding equity in earnings (loss) from unconsolidated
  entities

2,391



(6,431)



(3,862)



(20,077)


Homebuilding other income (expense), net

(5,570)



(11,787)



3,043



(16,845)


Homebuilding operating earnings

$

1,329,833



813,744



3,275,488



1,905,503










Financial Services revenues

$

206,973



237,068



669,789



631,992


Financial Services costs and expenses

94,890



101,989



290,179



363,688


Financial Services gain on deconsolidation







61,418


Financial Services operating earnings

$

112,083



135,079



379,610



329,722










Multifamily revenues

$

167,921



115,170



476,837



370,904


Multifamily costs and expenses

174,410



118,786



474,389



379,607


Multifamily equity in earnings (loss) from unconsolidated entities
  and other gain

(2,904)



(1,532)



9,682



4,702


Multifamily operating earnings (loss)

$

(9,393)



(5,148)



12,130



(4,001)










Lennar Other revenues

$

8,000



12,896



20,884



33,348


Lennar Other costs and expenses

9,010



2,062



18,994



3,564


Lennar Other equity in earnings (loss) from unconsolidated entities
  and other income (expense), net

(2,220)



(2,835)



59,954



(38,907)


Lennar Other realized and unrealized gain (loss) (1)

495,202





847,377




Lennar Other operating earnings (loss)

$

491,972



7,999



909,221



(9,123)



(1)     The following is a detail of Lennar Other realized and unrealized gain (loss):



Three Months Ended


Nine Months Ended


August 31,


August 31,


2021


2020


2021


2020

Hippo (HIPO) mark to market

$

324,855




324,855



SmartRent (SMRT) mark to market

100,793




100,793



Opendoor (OPEN) mark to market

37,301




272,756



Sunnova (NOVA) mark to market

23,870




(14,465)



Blend Labs (BLND) mark to market

6,852




6,852



Gain on sale of solar business

1,531




153,006



Other realized gain




3,580




$

495,202




847,377



 

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: Florida, New Jersey, Pennsylvania and South Carolina
Central: Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, Tennessee and Virginia
Texas: Texas
West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington
Other: Urban divisions


For the Three Months Ended August 31,


2021


2020


2021


2020


2021


2020

Deliveries:

Homes


Dollar Value


Average Sales Price

East

4,568



4,309



$

1,660,357



1,488,022



$

363,000



345,000


Central

3,211



2,767



1,262,540



1,062,799



393,000



384,000


Texas

2,747



2,598



818,869



719,467



298,000



277,000


West

4,669



4,165



2,764,856



2,205,235



592,000



529,000


Other

4



3



4,141



2,590



1,035,000



863,000


Total

15,199



13,842



$

6,510,763



5,478,113



$

428,000



396,000


Of the total homes delivered listed above, 15 homes with a dollar value of $5.1 million and an average sales price of $337,000 represent home deliveries from unconsolidated entities for the three months ended August 31, 2021, compared to 33 home deliveries with a dollar value of $10.7 million and an average sales price of $326,000 for the three months ended August 31, 2020.


At August 31,


For the Three Months Ended August 31,


2021


2020


2021


2020


2021


2020


2021


2020

New Orders:

Active Communities


Homes


Dollar Value


Average Sales Price

East

329



340



5,308



4,655



$

2,100,466



1,631,349



$

396,000



350,000


Central

281



297



3,189



3,375



1,352,814



1,298,792



424,000



385,000


Texas

233



217



3,203



2,746



988,644



743,553



309,000



271,000


West

350



341



4,571



4,786



3,006,501



2,580,328



658,000



539,000


Other

3



3



6



2



5,974



1,452



996,000



726,000


Total

1,196



1,198



16,277



15,564



$

7,454,399



6,255,474



$

458,000



402,000


Of the total homes listed above, 35 homes with a dollar value of $13.1 million and an average sales price of $375,000 represent homes in four active communities from unconsolidated entities for the three months ended August 31, 2021, compared to 34 homes with a dollar value of $9.7 million and an average sales price of $286,000 in four active communities for the three months ended August 31, 2020.


For the Nine Months Ended August 31,


2021


2020


2021


2020


2021


2020

Deliveries:

Homes


Dollar Value


Average Sales Price

East

12,968



11,511



$

4,572,592



3,924,289



$

353,000



341,000


Central

8,391



7,389



3,282,168



2,833,745



391,000



384,000


Texas

7,843



6,637



2,245,671



1,877,374



286,000



283,000


West

12,793



11,273



7,284,927



5,894,183



569,000



523,000


Other

11



25



10,645



23,642



968,000



946,000


Total

42,006



36,835



$

17,396,003



14,553,233



$

414,000



395,000


Of the total homes delivered listed above, 58 homes with a dollar value of $18.7 million and an average sales price of $322,000 represent home deliveries from unconsolidated entities for the nine months ended August 31, 2021, compared to 60 home deliveries with a dollar value of $20.0 million and an average sales price of $334,000 for the nine months ended August 31, 2020.


For the Nine Months Ended August 31,


2021


2020


2021


2020


2021


2020

New Orders:

Homes


Dollar Value


Average Sales Price

East

15,473



12,512



$

5,788,506



4,266,221



$

374,000



341,000


Central

9,931



8,741



4,086,170



3,341,959



411,000



382,000


Texas

9,228



7,327



2,800,826



1,986,770



304,000



271,000


West

14,358



12,359



8,871,465



6,508,509



618,000



527,000


Other

14



16



14,095



15,189



1,007,000



949,000


Total

49,004



40,955



$

21,561,062



16,118,648



$

440,000



394,000


Of the total homes listed above, 102 homes with a dollar value of $36.7 million and an average sales price of $359,000 represent homes from unconsolidated entities for the nine months ended August 31, 2021, compared to 85 homes with a dollar value of $26.8 million and an average sales price of $316,000 for the nine months ended August 31, 2020.


At August 31,


2021


2020


2021


2020


2021


2020

Backlog:

Homes


Dollar Value


Average Sales Price

East

8,518



6,691



$

3,526,849



2,368,300



$

414,000



354,000


Central

5,911



4,502



2,566,174



1,752,180



434,000



389,000


Texas

4,208



2,860



1,379,740



822,734



328,000



288,000


West

7,177



5,644



4,499,969



2,922,743



627,000



518,000


Other

5





5,298





1,060,000




Total

25,819



19,697



$

11,978,030



7,865,957



$

464,000



399,000


Of the total homes in backlog listed above, 82 homes with a backlog dollar value of $29.5 million and an average sales price of $359,000 represent the backlog from unconsolidated entities at August 31, 2021, compared to 56 homes with a backlog dollar value of $17.0 million and an average sales price of $303,000 at August 31, 2020.

 

LENNAR CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except per share amounts)

(unaudited)



August 31,


November 30,


2021


2020

ASSETS




Homebuilding:




Cash and cash equivalents

$

2,623,320



2,703,986


Restricted cash

21,519



15,211


Receivables, net

369,492



298,671


Inventories:




Finished homes and construction in progress

10,891,592



8,593,399


Land and land under development

7,210,032



7,495,262


Consolidated inventory not owned

1,004,319



836,567


Total inventories

19,105,943



16,925,228


Investments in unconsolidated entities

983,429



953,177


Goodwill

3,442,359



3,442,359


Other assets

1,034,691



1,190,793



27,580,753



25,529,425


Financial Services

2,282,873



2,708,118


Multifamily

1,226,692



1,175,908


Lennar Other

1,653,872



521,726


Total assets

$

32,744,190



29,935,177






LIABILITIES AND EQUITY




Homebuilding:




Accounts payable

$

1,230,577



1,037,338


Liabilities related to consolidated inventory not owned

841,539



706,691


Senior notes and other debts payable, net

5,542,513



5,955,758


Other liabilities

2,716,872



2,225,864



10,331,501



9,925,651


Financial Services

1,272,218



1,644,248


Multifamily

259,145



252,911


Lennar Other

101,787



12,966


Total liabilities

11,964,651



11,835,776


Stockholders' equity:




Preferred stock




Class A common stock of $0.10 par value

30,050



29,894


Class B common stock of $0.10 par value

3,944



3,944


Additional paid-in capital

8,778,609



8,676,056


Retained earnings

13,570,626



10,564,994


Treasury stock

(1,731,741)



(1,279,227)


Accumulated other comprehensive loss

(1,300)



(805)


Total stockholders' equity

20,650,188



17,994,856


Noncontrolling interests

129,351



104,545


Total equity

20,779,539



18,099,401


Total liabilities and equity

$

32,744,190



29,935,177


 

LENNAR CORPORATION AND SUBSIDIARIES

Supplemental Data

(Dollars in thousands)

(unaudited)



August 31,


November 30,


August 31,


2021


2020


2020

Homebuilding debt

$

5,542,513



5,955,758



7,180,274


Stockholders' equity

20,650,188



17,994,856



17,172,103


Total capital

$

26,192,701



23,950,614



24,352,377


Homebuilding debt to total capital

21.2

%


24.9

%


29.5

%







Homebuilding debt

$

5,542,513



5,955,758



7,180,274


Less: Homebuilding cash and cash equivalents

2,623,320



2,703,986



1,966,796


Net homebuilding debt

$

2,919,193



3,251,772



5,213,478


Net homebuilding debt to total capital (1)

12.4

%


15.3

%


23.3

%



(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.

 

Cision View original content:https://www.prnewswire.com/news-releases/lennar-reports-third-quarter-eps-of-4-52--301380778.html

SOURCE Lennar Corporation