2023 Fourth Quarter Highlights
- Net earnings per diluted share of $4.82
- $5.17, excluding mark-to-market
losses on technology investments and other one-time items
(collectively, "adjustments")
- Net earnings of $1.4 billion
($1.5 billion excluding
adjustments)
- New orders increased 32% to 17,366 homes; new orders dollar
value increased 32% to $7.3
billion
- Backlog of 14,892 homes with a dollar value of $6.6 billion
- Deliveries increased 19% to 23,795 homes
- Total revenues of $11.0
billion
- Homebuilding operating earnings of $1.9
billion
- Gross margin on home sales of 24.2%
- S,G&A expenses as a % of revenues from home sales of
6.6%
- Net margin on home sales of 17.6%
- Financial Services operating earnings of $168 million
- Multifamily operating loss of $12
million
- Lennar Other operating loss of $125
million
- Homebuilding cash and cash equivalents of $6.3 billion
- Years supply of owned homesites of 1.4 years and controlled
homesites of 76%
- No outstanding borrowings under the Company's $2.6 billion revolving credit facility
- Homebuilding debt to total capital improved to 9.6%
- Redeemed $378 million of 4.875%
senior notes due December 2023
- Repurchased $110 million
aggregate principal amount of senior notes due in April 2024 and November
2027
- Repurchased 3 million shares of Lennar common stock for
$337 million
2023 Fiscal Year Highlights
- Net earnings per diluted share of $13.73 ($14.25
excluding adjustments)
- Net earnings of $3.9 billion
($4.1 billion excluding
adjustments)
- New orders increased 13% to 69,111 homes
- Deliveries increased 10% to 73,087 homes
- Total revenues of $34.2
billion
- Gross margin on home sales of 23.3%; net margin of 16.4%
- Repurchased 10 million shares of Lennar common stock for
$1.1 billion
- Redeemed/repurchased $1.1 billion
of senior notes
- Homebuilding return on inventory of 29.4%
MIAMI, Dec. 14,
2023 /PRNewswire/ -- Lennar Corporation (NYSE:
LEN and LEN.B), one of the nation's largest homebuilders,
today reported results for its fourth quarter and fiscal year ended
November 30, 2023. Fourth quarter net
earnings attributable to Lennar in 2023 were $1.4 billion, or $4.82 per diluted share, compared to $1.3 billion, or $4.55 per diluted share in the fourth quarter of
2022. Excluding mark-to-market losses on technology investments and
other one-time items, fourth quarter net earnings attributable to
Lennar in 2023 were $1.5 billion, or
$5.17 per diluted share, compared to
fourth quarter net earnings attributable to Lennar in 2022 of
$1.5 billion, or $5.02 per diluted share. Net earnings
attributable to Lennar for the year ended November 30, 2023 were $3.9 billion, or $13.73 per diluted share, compared to
$4.6 billion, or $15.72 per diluted share for the year ended
November 30, 2022.
Stuart Miller, Executive Chairman
and Co-Chief Executive Officer of Lennar, said, "We are pleased to
report another strong quarter and year end, against the backdrop of
evolving, though constructive, market conditions. During our fourth
quarter, the economic environment shifted as interest rates rose
for most of the quarter, and then subsided. Higher interest rates
tested homebuyer sentiment, although purchasers remained responsive
to incentives that enabled affordability. The well documented
production deficit and chronic supply shortage continued to result
in housing demand outweighing short supply. These conditions
remained constructive for our overall operating strategy of
focusing on production and sales pace over price, generating strong
cash flow, increasing returns on equity and assets, and driving a
strong bottom line."
"Earnings were $1.4 billion, or
$4.82 per diluted share, compared to
$1.3 billion, or $4.55 per diluted share last year. We delivered
23,795 homes in our fourth quarter, a 19% increase year over year,
and our new orders were 17,366, up 32%, year over year, driven by
our operating strategy of maintaining production pace in lock step
with sales pace, using pricing and margin as a shock absorber.
Accordingly, our homebuilding gross margin in the fourth quarter
was 24.2%, reflecting the pressure from higher interest rates, and
our average sales price, net of incentives, per home delivered was
$441,000 in the fourth quarter,
compared to almost $500,000 last year
while Homebuilding S,G&A expenses were 6.6%, generating a 17.6%
net margin."
"Driven by this quarter's and year's strong operating
performance, we continued to strengthen and fortify our balance
sheet and our future. During the quarter, we repaid $488 million of debt and repurchased $337 million of our common stock, ending the
quarter with homebuilding debt to total capital of 9.6%, the lowest
in our history, no borrowings on our $2.6
billion revolver and cash of $6.3
billion. With cash on hand exceeding our debt, and with
overall liquidity of $8.9 billion,
our balance sheet has never been in a stronger position."
Jon Jaffe, Co-Chief Executive
Officer and President of Lennar, said, "Operationally, our starts
in the fourth quarter were 18,378, up 43% year over year, our new
orders were 17,366, up 32%, and our deliveries of 23,795 were up
19%. We are clearly moving closer to an even flow operating model
as we are now expecting approximately 18,500 starts, 18,000 new
orders, and 17,000 deliveries in the first quarter of 2024. We
expect more consistent results through the year as our cycle time
is normalizing and was down 24% year over year as the improving
supply chain and labor market positively impacted our production
times and our inventory turn improved to 1.5 times reflecting
broader efficiencies. Concurrently, the Lennar Machine continued to
carefully match sales pace using our digital marketing and dynamic
pricing models to keep production pace and sales pace closely
matched."
"During the quarter, we continued the execution of our land
light strategy. This was evidenced by our years supply of owned
homesites improving to 1.4 years from 1.9 years and our controlled
homesite percentage increasing to 76% from 69% year over year.
These results drove our return on inventory to 29.4%."
Mr. Miller concluded, "Even as the economic and interest rate
environment has shifted from more restrictive to more constructive,
we have remained vigilant and focused on a consistent even flow
operating strategy. This strategy has positioned us particularly
well as interest rates now seem more likely to moderate in 2024. We
expect our strong land position and community count, along with our
pace over price sales strategy, will allow us to aim for a year
over year delivery growth rate of 10% in 2024. Accordingly, we
expect to deliver approximately 80,000 homes for the year, with
16,500 to 17,000 homes at a gross margin of between 21.0% to 21.25%
in the first quarter of 2024. We will not guide full year margin at
this time, as the interest rate environment is rapidly evolving.
With strengthening prospects for future performance, we will
continue to drive strong cash flow to further fortify our balance
sheet with significant liquidity, and will allocate capital to
reduce debt as it comes due, and increase our share repurchase
target to $2 billion in 2024."
RESULTS OF OPERATIONS
THREE MONTHS
ENDED NOVEMBER 30, 2023 COMPARED
TO
THREE MONTHS ENDED NOVEMBER 30, 2022
Homebuilding
Revenues from home sales increased 8% in the fourth quarter of
2023 to $10.4 billion from
$9.7 billion in the fourth quarter of
2022. Revenues were higher primarily due to a 19% increase in
the number of home deliveries, partially offset by a 9% decrease in
the average sales price of homes delivered. New home deliveries
increased to 23,795 homes in the fourth quarter of 2023 from 20,064
homes in the fourth quarter of 2022. The average sales price of
homes delivered was $441,000 in the
fourth quarter of 2023, compared to $483,000 in the fourth quarter of 2022. The
decrease in average sales price of homes delivered in the fourth
quarter of 2023 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 $2.5 billion, or 24.2%, in
the fourth quarter of 2023, compared to $2.4 billion, or
24.8%, in the fourth quarter of 2022. During the fourth quarter of
2023, gross margins decreased because of a decrease in average
sales price, which was partially offset by a decrease in costs per
square foot as the Company continued to focus on construction cost
savings.
Selling, general and administrative expenses were $688 million in the fourth quarter of 2023,
compared to $563 million in the
fourth quarter of 2022. As a percentage of revenues from home
sales, selling, general and administrative expenses increased to
6.6% in the fourth quarter of 2023, from 5.8% in the fourth quarter
of 2022, primarily due to an increase in the use of brokers due to
current market conditions.
Financial Services
Operating earnings for the Financial Services segment were
$168 million in the fourth quarter of
2023, compared to $125 million in the
fourth quarter of 2022. The increase in operating earnings was
primarily due to a higher profit per locked loan in the Company's
mortgage business as a result of higher margins, and higher lock
volume because of an increased capture rate and deliveries. There
was also an increase in profitability from the Company's title
business due to higher volume and productivity as a result of
continued implementation of technology initiatives.
Other Ancillary Businesses
Operating loss for the Multifamily segment was $12 million in the fourth quarter of 2023,
compared to operating earnings of $15
million in the fourth quarter of 2022. Operating loss for
the Lennar Other segment was $125
million in the fourth quarter of 2023, compared to an
operating loss of $106 million in the
fourth quarter of 2022. The Lennar Other operating loss for the
fourth quarter of 2023 was primarily due to negative mark-to-market
adjustments of $36 million on the
Company's publicly traded technology investments and a $65 million write-off of one of the Company's
non-public technology investments. The Lennar Other operating loss
for the fourth quarter of 2022 was primarily due to negative
mark-to-market adjustments of $96
million on the Company's publicly traded technology
investments.
Tax Rate
For the quarter ended November 30,
2023 and 2022, the Company had a tax provision of
$417 million and $415 million, which resulted in an overall
effective income tax rate of 23.4% and 23.9%, respectively.
OTHER TRANSACTIONS
Debt Transactions
During the fourth quarter of 2023, the Company redeemed
$378 million aggregate principal
amount of its 4.875% senior notes due December 2023 at an early redemption price of
100% of the principal amount outstanding. Additionally, the Company
repurchased $110 million aggregate
principal amount of senior notes due in April 2024 and November
2027.
Share Repurchases
During the fourth quarter of 2023, the Company repurchased 3
million shares of its common stock for $337
million at an average per share price of $112.49.
Liquidity
At November 30, 2023, the Company had $6.3 billion of Homebuilding cash and cash
equivalents and no outstanding borrowings under its $2.6 billion revolving credit facility, thereby
providing $8.9 billion of available
capacity.
Guidance
The following are the Company's expected results of its
homebuilding and financial services activities:
|
First Quarter 2024
|
|
Fiscal Year 2024
|
New Orders
|
17,500 -
18,000
|
|
|
Deliveries
|
16,500 -
17,000
|
|
80,000
|
Average Sales
Price
|
About
$420,000
|
|
|
Gross Margin % on Home
Sales
|
21.0% -
21.25%
|
|
|
S,G&A as a % of
Home Sales
|
8.0% - 8.2%
|
|
|
Financial Services
Operating Earnings
|
$85 million - $90
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;
decreased demand for our homes, or for Multifamily rental
apartments or single family homes; the potential impact of
inflation; the impact of increased cost of mortgage financing for
homebuyers, increased interest rates or increased competition in
the mortgage industry; supply shortages and increased costs related
to construction materials, including lumber, and labor; cost
increases related to real estate taxes and insurance; the effect of
increased interest rates with regard to our funds' borrowings on
the willingness of the funds to invest in new projects; reductions
in the market value of our investments in public companies; natural
disasters or catastrophic events for which our insurance may not
provide adequate coverage; our inability to successfully execute
our strategies and our planned spin-off of certain businesses; a
decline in the value of the land and home inventories we maintain
and resulting possible future writedowns of the carrying value of
our real estate assets; the forfeiture of deposits related to land
purchase options we decide not to exercise; the effects of public
health issues such as a major epidemic or pandemic that could have
a negative impact on the economy and on our businesses; possible
unfavorable results in legal proceedings; conditions in the
capital, credit and financial markets; changes in laws, regulations
or the regulatory environment affecting our business, and the other
risks and uncertainties described in our filings from time to time
with the Securities and Exchange Commission, including those
included under the captions "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in our most recent Annual Report on Form 10-K and
Quarterly reports on Form 10-Q. We undertake no obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise.
A conference call to discuss the Company's fourth quarter
earnings will be held at 11:00 a.m. Eastern
Time on Friday, December 15, 2023. The call will be
broadcast live on the Internet and can be accessed through the
Company's website at investors.lennar.com. If you are unable to
participate in the conference call, the call will be archived at
investors.lennar.com for 90 days. A replay of the conference call
will also be available later that day by calling 203-369-0607 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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenues:
|
|
|
|
|
|
|
|
Homebuilding
|
$
10,516,050
|
|
9,741,652
|
|
32,660,987
|
|
31,951,335
|
Financial
Services
|
304,693
|
|
230,735
|
|
976,859
|
|
809,680
|
Multifamily
|
140,824
|
|
179,167
|
|
573,485
|
|
865,603
|
Lennar
Other
|
6,616
|
|
22,813
|
|
22,035
|
|
44,392
|
Total
revenues
|
$
10,968,183
|
|
10,174,367
|
|
34,233,366
|
|
33,671,010
|
|
|
|
|
|
|
|
|
Homebuilding operating
earnings
|
$
1,912,639
|
|
1,823,832
|
|
5,527,707
|
|
6,777,317
|
Financial Services
operating earnings
|
169,130
|
|
125,228
|
|
509,461
|
|
383,302
|
Multifamily operating
earnings (loss)
|
(12,155)
|
|
14,911
|
|
(50,651)
|
|
69,493
|
Lennar Other operating
loss
|
(125,414)
|
|
(105,111)
|
|
(209,788)
|
|
(734,649)
|
Corporate general and
administrative expenses
|
(136,336)
|
|
(80,073)
|
|
(501,338)
|
|
(414,498)
|
Charitable foundation
contribution
|
(23,795)
|
|
(20,064)
|
|
(73,087)
|
|
(66,399)
|
Earnings before income
taxes
|
1,784,069
|
|
1,758,723
|
|
5,202,304
|
|
6,014,566
|
Provision for income
taxes
|
(416,780)
|
|
(414,789)
|
|
(1,241,013)
|
|
(1,366,065)
|
Net earnings
(including net earnings attributable to noncontrolling
interests)
|
1,367,289
|
|
1,343,934
|
|
3,961,291
|
|
4,648,501
|
Less: Net earnings
attributable to noncontrolling interests
|
6,002
|
|
21,490
|
|
22,780
|
|
34,376
|
Net earnings
attributable to Lennar
|
$
1,361,287
|
|
1,322,444
|
|
3,938,511
|
|
4,614,125
|
|
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
279,438
|
|
287,362
|
|
283,319
|
|
289,824
|
Diluted
|
279,438
|
|
287,362
|
|
283,319
|
|
289,824
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
4.82
|
|
4.56
|
|
13.73
|
|
15.74
|
Diluted
|
$
4.82
|
|
4.55
|
|
13.73
|
|
15.72
|
|
|
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
|
|
|
Interest incurred
(1)
|
$
41,434
|
|
49,970
|
|
187,640
|
|
230,839
|
|
|
|
|
|
|
|
|
EBIT
(2):
|
|
|
|
|
|
|
|
Net earnings
attributable to Lennar
|
$
1,361,287
|
|
1,322,444
|
|
3,938,511
|
|
4,614,125
|
Provision for income
taxes
|
416,780
|
|
414,789
|
|
1,241,013
|
|
1,366,065
|
Interest expense
included in:
|
|
|
|
|
|
|
|
Costs of homes
sold
|
69,859
|
|
80,980
|
|
240,871
|
|
293,105
|
Costs of land
sold
|
156
|
|
139
|
|
1,588
|
|
498
|
Homebuilding other
income, net
|
4,525
|
|
3,899
|
|
15,434
|
|
19,128
|
Total interest
expense
|
74,540
|
|
85,018
|
|
257,893
|
|
312,731
|
EBIT
|
$
1,852,607
|
|
1,822,251
|
|
5,437,417
|
|
6,292,921
|
(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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Homebuilding
revenues:
|
|
|
|
|
|
|
|
Sales of
homes
|
$
10,442,850
|
|
9,654,320
|
|
32,459,129
|
|
31,778,885
|
Sales of
land
|
63,501
|
|
79,153
|
|
109,963
|
|
143,041
|
Other
homebuilding
|
9,699
|
|
8,179
|
|
91,895
|
|
29,409
|
Total
revenues
|
10,516,050
|
|
9,741,652
|
|
32,660,987
|
|
31,951,335
|
|
|
|
|
|
|
|
|
Homebuilding costs
and expenses:
|
|
|
|
|
|
|
|
Costs of homes
sold
|
7,919,724
|
|
7,255,931
|
|
24,900,470
|
|
23,025,467
|
Costs of land
sold
|
39,413
|
|
100,224
|
|
92,142
|
|
171,589
|
Selling, general and
administrative
|
687,774
|
|
563,356
|
|
2,231,033
|
|
1,964,243
|
Total costs and
expenses
|
8,646,911
|
|
7,919,511
|
|
27,223,645
|
|
25,161,299
|
Homebuilding net
margins
|
1,869,139
|
|
1,822,141
|
|
5,437,342
|
|
6,790,036
|
Homebuilding equity in
earnings (loss) from unconsolidated entities
|
9,223
|
|
(7,159)
|
|
(3,886)
|
|
(17,235)
|
Homebuilding other
income, net
|
34,277
|
|
8,850
|
|
94,251
|
|
4,516
|
Homebuilding
operating earnings
|
$
1,912,639
|
|
1,823,832
|
|
5,527,707
|
|
6,777,317
|
|
|
|
|
|
|
|
|
Financial Services
revenues
|
$ 304,693
|
|
230,735
|
|
976,859
|
|
809,680
|
Financial Services
costs and expenses
|
135,563
|
|
105,507
|
|
467,398
|
|
426,378
|
Financial Services
operating earnings
|
$ 169,130
|
|
125,228
|
|
509,461
|
|
383,302
|
|
|
|
|
|
|
|
|
Multifamily
revenues
|
$ 140,824
|
|
179,167
|
|
573,485
|
|
865,603
|
Multifamily costs and
expenses
|
130,589
|
|
194,609
|
|
573,658
|
|
848,931
|
Multifamily equity in
earnings (loss) from unconsolidated entities and
other income, net
|
(22,390)
|
|
30,353
|
|
(50,478)
|
|
52,821
|
Multifamily
operating earnings (loss)
|
$
(12,155)
|
|
14,911
|
|
(50,651)
|
|
69,493
|
|
|
|
|
|
|
|
|
Lennar Other
revenues
|
$
6,616
|
|
22,813
|
|
22,035
|
|
44,392
|
Lennar Other costs and
expenses
|
8,255
|
|
8,608
|
|
27,681
|
|
32,258
|
Lennar Other equity in
earnings (loss) from unconsolidated entities and
other income (expense), net, and other gain (loss)
|
(87,783)
|
|
(23,196)
|
|
(153,980)
|
|
(91,689)
|
Lennar Other unrealized
losses from technology investments (1)
|
(35,992)
|
|
(96,120)
|
|
(50,162)
|
|
(655,094)
|
Lennar Other
operating loss
|
$
(125,414)
|
|
(105,111)
|
|
(209,788)
|
|
(734,649)
|
(1) The following is a detail of Lennar Other
unrealized losses from mark-to-market adjustments on technology
investments:
|
|
Three Months
Ended
|
|
Years
Ended
|
|
November
30,
|
|
November
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Blend Labs
(BLND)
|
$
230
|
|
(4,120)
|
|
(130)
|
|
(25,630)
|
Hippo (HIPO)
|
(4,277)
|
|
(27,111)
|
|
(19,210)
|
|
(222,447)
|
Opendoor
(OPEN)
|
(16,697)
|
|
(46,525)
|
|
21,762
|
|
(265,276)
|
SmartRent
(SMRT)
|
(2,305)
|
|
(6,746)
|
|
5,914
|
|
(78,177)
|
Sonder
(SOND)
|
(151)
|
|
(39)
|
|
(700)
|
|
(2,339)
|
Sunnova
(NOVA)
|
(12,792)
|
|
(11,579)
|
|
(57,798)
|
|
(61,225)
|
|
$
(35,992)
|
|
(96,120)
|
|
(50,162)
|
|
(655,094)
|
LENNAR CORPORATION AND
SUBSIDIARIES
Summary of Deliveries, New Orders and
Backlog
(Dollars in thousands, except average sales price)
(unaudited)
Lennar's reportable homebuilding segments and all other
homebuilding operations not required to be reported separately have
divisions located in:
East: Alabama,
Florida, New Jersey, Pennsylvania and South Carolina
Central: Georgia,
Illinois, Indiana, Maryland, Minnesota, North
Carolina, Tennessee and
Virginia
Texas: Texas
West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah
and Washington
Other: Urban divisions
|
For the Three Months
Ended November 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Deliveries:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
7,342
|
|
6,287
|
|
$
3,050,123
|
|
2,832,364
|
|
$ 415,000
|
|
451,000
|
Central
|
5,134
|
|
4,186
|
|
2,105,376
|
|
1,874,285
|
|
410,000
|
|
448,000
|
Texas
|
5,160
|
|
3,721
|
|
1,363,557
|
|
1,174,159
|
|
264,000
|
|
316,000
|
West
|
6,145
|
|
5,864
|
|
3,976,322
|
|
3,795,099
|
|
647,000
|
|
647,000
|
Other
|
14
|
|
6
|
|
8,412
|
|
3,570
|
|
601,000
|
|
595,000
|
Total
|
23,795
|
|
20,064
|
|
$
10,503,790
|
|
9,679,477
|
|
$ 441,000
|
|
483,000
|
Of the total homes delivered listed above, 139 homes with a
dollar value of $61 million and an
average sales price of $438,000
represent home deliveries from unconsolidated entities for the
three months ended November 30, 2023,
compared to 59 home deliveries with a dollar value of $25 million and an average sales price of
$426,000 for the three months ended
November 30, 2022.
|
At November
30,
|
|
For the Three Months
Ended November 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
New
Orders:
|
Active
Communities
|
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
337
|
|
316
|
|
5,344
|
|
5,091
|
|
$
2,154,221
|
|
2,114,576
|
|
$ 403,000
|
|
415,000
|
Central
|
291
|
|
313
|
|
3,278
|
|
2,299
|
|
1,314,880
|
|
937,816
|
|
401,000
|
|
408,000
|
Texas
|
246
|
|
235
|
|
4,185
|
|
2,706
|
|
1,070,282
|
|
708,833
|
|
256,000
|
|
262,000
|
West
|
384
|
|
341
|
|
4,549
|
|
3,101
|
|
2,738,131
|
|
1,770,085
|
|
602,000
|
|
571,000
|
Other
|
2
|
|
3
|
|
10
|
|
3
|
|
6,495
|
|
2,109
|
|
649,000
|
|
703,000
|
Total
|
1,260
|
|
1,208
|
|
17,366
|
|
13,200
|
|
$
7,284,009
|
|
5,533,419
|
|
$ 419,000
|
|
419,000
|
Of the total new orders listed above, 69 homes with a dollar
value of $36 million and an average
sales price of $516,000 represent new
orders in five active communities from unconsolidated entities for
the three months ended November 30,
2023, compared to 78 new orders with a dollar value of
$29 million and an average sales
price of $373,000 in eight active
communities for the three months ended November 30, 2022.
|
For the Years Ended
November 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Deliveries:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
22,614
|
|
21,214
|
|
$
9,719,265
|
|
9,268,940
|
|
$ 430,000
|
|
437,000
|
Central
|
14,461
|
|
13,152
|
|
6,127,748
|
|
5,830,587
|
|
424,000
|
|
443,000
|
Texas
|
16,591
|
|
12,993
|
|
4,692,906
|
|
4,212,223
|
|
283,000
|
|
324,000
|
West
|
19,388
|
|
19,015
|
|
12,052,131
|
|
12,513,277
|
|
622,000
|
|
658,000
|
Other
|
33
|
|
25
|
|
23,236
|
|
21,386
|
|
704,000
|
|
855,000
|
Total
|
73,087
|
|
66,399
|
|
$
32,615,286
|
|
31,846,413
|
|
$ 446,000
|
|
480,000
|
Of the total homes delivered listed above, 340 homes with a
dollar value of $156 million and an
average sales price of $459,000
represent home deliveries from unconsolidated entities for the year
ended November 30, 2023, compared to
174 home deliveries with a dollar value of $68 million and an average sales price of
$388,000 for the year ended
November 30, 2022.
|
For the Years Ended
November 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
New
Orders:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
20,884
|
|
21,649
|
|
$
8,760,877
|
|
9,516,178
|
|
$ 420,000
|
|
440,000
|
Central
|
13,204
|
|
12,020
|
|
5,494,319
|
|
5,351,534
|
|
416,000
|
|
445,000
|
Texas
|
15,789
|
|
11,424
|
|
4,331,763
|
|
3,596,037
|
|
274,000
|
|
315,000
|
West
|
19,199
|
|
15,990
|
|
11,897,996
|
|
10,604,593
|
|
620,000
|
|
663,000
|
Other
|
35
|
|
22
|
|
23,600
|
|
18,608
|
|
674,000
|
|
846,000
|
Total
|
69,111
|
|
61,105
|
|
$
30,508,555
|
|
29,086,950
|
|
$ 441,000
|
|
476,000
|
Of the total new orders listed above, 321 homes with a dollar
value of $153 million and an average
sales price of $476,000 represent new
orders from unconsolidated entities for the year ended November 30, 2023, compared to 261 new orders
with a dollar value of $117 million
and an average sales price of $447,000 for the year ended November 30, 2022.
|
At November
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Backlog:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
6,975
|
|
8,706
|
|
$ 2,861,937
|
|
3,820,714
|
|
$ 410,000
|
|
439,000
|
Central
|
2,768
|
|
4,025
|
|
1,222,002
|
|
1,855,430
|
|
441,000
|
|
461,000
|
Texas
|
1,895
|
|
2,697
|
|
475,941
|
|
837,083
|
|
251,000
|
|
310,000
|
West
|
3,251
|
|
3,440
|
|
2,072,342
|
|
2,226,477
|
|
637,000
|
|
647,000
|
Other
|
3
|
|
1
|
|
1,528
|
|
1,164
|
|
509,000
|
|
1,164,000
|
Total
|
14,892
|
|
18,869
|
|
$ 6,633,750
|
|
8,740,868
|
|
$ 445,000
|
|
463,000
|
Of the total homes in backlog listed above, 147 homes with a
backlog dollar value of $74 million
and an average sales price of $507,000 represent the backlog from
unconsolidated entities at November 30,
2023, compared to 166 homes with a backlog dollar value of
$78 million and an average sales
price of $469,000 at November 30, 2022.
LENNAR CORPORATION
AND SUBSIDIARIES Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
(unaudited)
|
|
|
November
30,
|
|
2023
|
|
2022
|
ASSETS
|
|
|
|
Homebuilding:
|
|
|
|
Cash and cash
equivalents
|
$
6,273,724
|
|
4,616,124
|
Restricted
cash
|
13,481
|
|
23,046
|
Receivables,
net
|
887,992
|
|
673,980
|
Inventories:
|
|
|
|
Finished homes and
construction in progress
|
10,455,666
|
|
11,718,507
|
Land and land under
development
|
4,904,541
|
|
5,648,548
|
Inventory
owned
|
15,360,207
|
|
17,367,055
|
Consolidated inventory
not owned
|
2,992,528
|
|
2,331,231
|
Inventory owned and
consolidated inventory not owned
|
18,352,735
|
|
19,698,286
|
Deposits and
pre-acquisition costs on real estate
|
2,002,154
|
|
1,733,725
|
Investments in
unconsolidated entities
|
1,143,909
|
|
1,173,164
|
Goodwill
|
3,442,359
|
|
3,442,359
|
Other
assets
|
1,512,038
|
|
1,323,478
|
|
33,628,392
|
|
32,684,162
|
Financial
Services
|
3,566,546
|
|
3,254,257
|
Multifamily
|
1,381,513
|
|
1,257,337
|
Lennar
Other
|
657,852
|
|
788,539
|
Total
assets
|
$
39,234,303
|
|
37,984,295
|
LIABILITIES AND
EQUITY
|
|
|
|
Homebuilding:
|
|
|
|
Accounts
payable
|
$
1,631,401
|
|
1,616,128
|
Liabilities related to
consolidated inventory not owned
|
2,540,894
|
|
1,967,551
|
Senior notes and other
debts payable, net
|
2,816,482
|
|
4,047,294
|
Other
liabilities
|
2,739,217
|
|
3,347,673
|
|
9,727,994
|
|
10,978,646
|
Financial
Services
|
2,447,039
|
|
2,353,904
|
Multifamily
|
278,177
|
|
313,484
|
Lennar
Other
|
79,127
|
|
97,894
|
Total
liabilities
|
12,532,337
|
|
13,743,928
|
Stockholders'
equity:
|
|
|
|
Preferred
stock
|
—
|
|
—
|
Class A common stock of
$0.10 par value
|
25,848
|
|
25,608
|
Class B common stock of
$0.10 par value
|
3,660
|
|
3,660
|
Additional paid-in
capital
|
5,570,009
|
|
5,417,796
|
Retained
earnings
|
22,369,368
|
|
18,861,417
|
Treasury
stock
|
(1,393,100)
|
|
(210,389)
|
Accumulated other
comprehensive income
|
4,879
|
|
2,408
|
Total stockholders'
equity
|
26,580,664
|
|
24,100,500
|
Noncontrolling
interests
|
121,302
|
|
139,867
|
Total
equity
|
26,701,966
|
|
24,240,367
|
Total liabilities
and equity
|
$
39,234,303
|
|
37,984,295
|
|
|
|
LENNAR CORPORATION
AND SUBSIDIARIES Supplemental Data
(Dollars in thousands)
(unaudited)
|
|
|
November
30,
|
|
2023
|
|
2022
|
Homebuilding
debt
|
$ 2,816,482
|
|
4,047,294
|
Stockholders'
equity
|
26,580,664
|
|
24,100,500
|
Total
capital
|
$
29,397,146
|
|
28,147,794
|
Homebuilding debt to
total capital
|
9.6 %
|
|
14.4 %
|
|
|
|
|
Homebuilding
debt
|
$ 2,816,482
|
|
4,047,294
|
Less: Homebuilding cash
and cash equivalents
|
6,273,724
|
|
4,616,124
|
Net homebuilding
debt
|
$
(3,457,242)
|
|
(568,830)
|
Net homebuilding
debt to total capital (1)
|
(15.0) %
|
|
(2.4) %
|
(1)
|
Net homebuilding
debt to total capital is a non-GAAP financial measure defined as
net homebuilding debt (homebuilding debt less homebuilding cash and
cash equivalents) divided by total capital (net homebuilding debt
plus stockholders' equity). The Company believes the ratio of net
homebuilding debt to total capital is a relevant and a useful
financial measure to investors in understanding the leverage
employed in homebuilding operations. However, because net
homebuilding debt to total capital is not calculated in accordance
with GAAP, this financial measure should not be considered in
isolation or as an alternative to financial measures prescribed by
GAAP. Rather, this non-GAAP financial measure should be used to
supplement the Company's GAAP results.
|
Contact:
Ian Frazer
Investor Relations
Lennar Corporation
(305) 485-4129
View original
content:https://www.prnewswire.com/news-releases/lennar-reports-fourth-quarter-and-fiscal-2023-results-302016137.html
SOURCE Lennar Corporation