LEN
$87.29
Lennar
$2.56
3.02%
Earnings Details
2nd Quarter May 2022
Tuesday, June 21, 2022 6:00:00 AM
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Summary

Lennar Beats but Guides Lower

Lennar (LEN) reported 2nd Quarter May 2022 earnings of $4.69 per share on revenue of $8.4 billion. The consensus earnings estimate was $3.95 per share on revenue of $8.1 billion. The Earnings Whisper number was $3.99 per share. Revenue grew 30.0% on a year-over-year basis.

The company said it expects third quarter revenue to be slightly higher than $8.21 billion to $8.94 billion. The current consensus revenue estimate is $9.37 billion for the quarter ending August 31, 2022.

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
$4.69
Earnings Whisper
$3.99
Consensus Estimate
$3.95
Reported Revenue
$8.36 Bil
Revenue Estimate
$8.11 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Lennar Reports Second Quarter 2022 Results

2022 Second Quarter Highlights - comparisons to the prior year quarter

  • Net earnings per diluted share increased 69% to $4.49
    • Increased 59% to $4.69, excluding mark-to-market losses on technology investments in both years and the gain on the sale of the Company's residential solar business in the prior year
  • Net earnings increased 59% to $1.3 billion
    • Increased 49% to $1.4 billion, excluding mark-to-market losses on technology investments in both years and the gain on the sale of the Company's residential solar business in the prior year
  • Deliveries increased 14% to 16,549 homes
  • New orders increased 4% to 17,792 homes; new orders dollar value increased 20% to $9.1 billion
  • Backlog increased 16% to 28,624 homes; backlog dollar value increased 33% to $14.7 billion
  • Total revenues increased 30% to $8.4 billion
  • Homebuilding operating earnings increased to $1.9 billion, compared to operating earnings of $1.1 billion
    • Gross margin on home sales improved 340 basis points ("bps") to 29.5%
    • S,G&A expenses as a % of revenues from home sales improved 150 bps to 6.1%
    • Net margin on home sales improved 490 bps to 23.4%
  • Financial Services operating earnings of $103.9 million, compared to operating earnings of $121.3 million
  • Multifamily operating earnings of $0.7 million, compared to operating earnings of $22.4 million
  • Lennar Other operating loss of $108.4 million, compared to operating loss of $54.1 million
  • Homebuilding cash and cash equivalents of $1.3 billion
  • Controlled homesites increased to 62%, compared to 50%
  • No borrowings under the Company's $2.575 billion revolving credit facility
  • Homebuilding debt to total capital improved to 17.7%, compared to 23.1%
  • Repurchased 4.1 million shares of Lennar common stock for $320.6 million

MIAMI, June 21, 2022 /PRNewswire/ -- Lennar Corporation (NYSE: LEN and LEN.B), one of the nation's leading homebuilders, today reported results for its second quarter ended May 31, 2022. Second quarter net earnings attributable to Lennar in 2022 were $1.3 billion, or $4.49 per diluted share, compared to second quarter net earnings attributable to Lennar in 2021 of $831.4 million, or $2.65 per diluted share. Excluding mark-to-market losses on technology investments in both years and a gain on the sale of the Company's residential solar business in the prior year, second quarter net earnings attributable to Lennar in 2022 were $1.4 billion, or $4.69 per diluted share, compared to second quarter net earnings attributable to Lennar in 2021 of $923.6 million, or $2.95 per diluted share.

Stuart Miller, Executive Chairman of Lennar, said, "At this complicated moment in the market, we are pleased to report second quarter earnings of $1.3 billion, or $4.49 per diluted share, compared to $831.4 million, or $2.65 per diluted share for the second quarter last year. While our new orders grew 4% compared to last year's second quarter, we achieved a homebuilding gross margin of 29.5% and homebuilding S,G&A of 6.1%, leading to a 23.4% net margin, even as materials costs and wages have increased. Our home deliveries were 16,549 and above the high end of our guidance given at the beginning of the quarter." 

"While our second quarter results demonstrate strength and excellent performance throughout the quarter, the weight of a rapid doubling of interest rates over six months, together with accelerated price appreciation, began to drive buyers in many markets to pause and reconsider. We began to see these effects after quarter end."  

"The Fed's stated determination to curtail inflation through interest rate increases and quantitative tightening have begun to have the desired effect of slowing sales in some markets and stalling price increases across the country. While we believe that there remains a significant shortage of dwellings, and especially workforce housing, in the United States, the relationship between price and interest rates is going through a rebalance."  

"Accordingly, we are laser focused on traffic, affordability, the quality of our backlog, along with cancellation rates and completed, unsold inventory levels which, to date, are both at low levels. Additionally, we are focused on balance sheet strength as we ended the quarter with $1.3 billion in cash, no borrowings on our $2.6 billion revolver and homebuilding debt to capital of 17.7%. Our balance sheet has never been in a stronger position than it is today." 

Rick Beckwitt, Co-Chief Executive Officer and Co-President of Lennar, said, "During the second quarter, we continued to make progress on our land light strategy. This was evidenced by our controlled homesite percentage increasing to 62% from 50% year over year. This progress contributed to a return on equity of 21.4%, a 260 basis point improvement over last year's second quarter." 

Jon Jaffe, Co-Chief Executive Officer and Co-President of Lennar, said, "During the quarter, our homebuilding machine continued to be intensely focused on production. Our cycle time during the quarter increased only slightly sequentially so it appears that the well documented supply chain issues have started to subside. Our quarterly starts and sales pace remained strong at 6.2 homes and 5.0 homes per community, respectively, in the second quarter."

Mr. Miller concluded, "We recognize that current attempts at guidance are tantamount to 'guessing' and not 'guiding.' Therefore, for our third quarter, we will give broad boundaries for deliveries between 17,000 to 18,500 homes and boundaries for gross margins between 28.5% – 29.5%. For the full year, we will leave our delivery expectations at approximately 68,000 homes and, at this time, will not provide updated guidance for other items. Recognizing that the Fed's actions are still quite fluid and responsive to inflation data, the housing market will rebalance supply and demand, and interest rates and purchase price as market conditions evolve. Nevertheless, at Lennar, we are operating from a position of strength, enabling us to continue to execute on our core strategies."  

RESULTS OF OPERATIONS

THREE MONTHS ENDED MAY 31, 2022 COMPARED TO
THREE MONTHS ENDED MAY 31, 2021 

Homebuilding

Revenues from home sales increased 33% in the second quarter of 2022 to $8.0 billion from $6.0 billion in the second quarter of 2021. Revenues were higher primarily due to a 14% increase in the number of home deliveries to 16,549 homes from 14,493 homes and a 17% increase in the average sales price to $483,000 from $414,000.

Gross margin on home sales were $2.4 billion, or 29.5%, in the second quarter of 2022, compared to $1.6 billion, or 26.1%, in the second quarter of 2021. During the second quarter of 2022, an increase in revenues per square foot was offset by an increase in costs per square foot primarily due to higher material and labor costs. Overall, gross margins improved year over year as land costs remained relatively flat while interest expense decreased as a result of the Company's focus on reducing debt.

Selling, general and administrative expenses were $486.6 million in the second quarter of 2022, compared to $455.2 million in the second quarter of 2021. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 6.1% in the second quarter of 2022, from 7.6% in the second quarter of 2021. This was the lowest percentage for a second quarter in the Company's history primarily due to a decrease in broker commissions and the benefits of the Company's technology efforts.

Financial Services

Operating earnings for the Financial Services segment were $103.9 million in the second quarter of 2022, compared to $121.3 million in the second quarter of 2021. The decrease in operating earnings was primarily due to lower mortgage net margins driven by a more competitive mortgage market, partially offset by an increase in rate lock volume and an increase in profit per order in the title business.

Other Ancillary Businesses

Operating earnings for the Multifamily segment were $0.7 million in the second quarter of 2022, compared to $22.4 million in the second quarter of 2021. Operating loss for the Lennar Other segment was $108.4 million in the second quarter of 2022, compared to $54.1 million in the second quarter of 2021. Lennar Other operating loss in the second quarter of 2022 was primarily due to mark-to-market losses on the Company's publicly traded technology investments. Lennar Other operating loss in the second quarter of 2021 was primarily due to mark-to-market losses on the Company's publicly traded technology investments, partially offset by the gain on the sale of the Company's residential solar business.

RESULTS OF OPERATIONS

SIX MONTHS ENDED MAY 31, 2022 COMPARED TO
SIX MONTHS ENDED MAY 31, 2021 

Homebuilding

Revenues from home sales increased 26% in the six months ended May 31, 2022 to $13.7 billion from $10.9 billion in the six months ended May 31, 2021. Revenues were higher primarily due to a 9% increase in the number of home deliveries to 29,087 from 26,807 and a 16% increase in the average sales price to $472,000 from $406,000.

Gross margin on home sales were $3.9 billion, or 28.4%, in the six months ended May 31, 2022, compared to $2.8 billion, or 25.6%, in the six months ended May 31, 2021. During the six months ended May 31, 2022, an increase in revenues per square foot was offset by an increase in costs per square foot primarily due to higher material and labor costs. Overall, gross margins improved year over year as land costs remained relatively flat while interest expense decreased as a result of the Company's focus on reducing debt.

Selling, general and administrative expenses were $915.0 million in the six months ended May 31, 2022, compared to $865.4 million in the six months ended May 31, 2021. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 6.7% in the six months ended May 31, 2022, from 8.0% in the six months ended May 31, 2021. The improvement was primarily due to a decrease in broker commissions and the benefits of the Company's technology efforts.

Financial Services

Operating earnings for the Financial Services segment were $194.7 million in the six months ended May 31, 2022, compared to $267.5 million in the six months ended May 31, 2021. The decrease in operating earnings was primarily due to lower mortgage net margins driven by a more competitive mortgage market, partially offset by an increase in rate lock volume.

Other Ancillary Businesses

Operating earnings for the Multifamily segment were $6.1 million in the six months ended May 31, 2022, compared to $21.5 million in the six months ended May 31, 2021. Operating loss for the Lennar Other segment was $511.6 million in the six months ended May 31, 2022, compared to operating earnings of $417.2 million in the six months ended May 31, 2021. Lennar Other operating loss for the six months ended May 31, 2022 was primarily due to mark-to-market losses on the Company's publicly traded technology investments. Lennar Other operating earnings for the six months ended May 31, 2021 was primarily due to mark-to-market unrealized gains on the Company's publicly traded technology investments and the gain on the sale of the Company's residential solar business.

Tax Rate

For the six months ended May 31, 2022 and 2021, the Company had a tax provision of $599.7 million and $570.2 million, respectively, which resulted in an overall effective income tax rate of 24.7% and 23.7%, respectively. The overall effective income tax rate was higher in 2022 primarily due to the expiration of the new energy efficient home tax credit.

Share Repurchases

During the second quarter of 2022, the Company repurchased 4.1 million shares of its common stock for $320.6 million at an average per share price of $78.20. For the six months ended May 31, 2022, the Company repurchased a total of 9.4 million shares of its common stock for $846.9 million at an average share price of $90.40.

Credit Facility

In May 2022, the Company amended the credit agreement governing its unsecured revolving credit facility (the "Credit Facility") to increase the commitments from $2.5 billion to $2.575 billion and extend the maturity to May 2027, except with regard to $350 million which matures in April 2024. The Credit Facility has a $425 million accordion feature, subject to additional commitments, thus the maximum borrowings are $3.0 billion.

Liquidity

At May 31, 2022, the Company had $1.3 billion of Homebuilding cash and cash equivalents and no borrowings under its $2.575 billion revolving credit facility, thereby providing $3.9 billion of available capacity.

Guidance

The following are the Company's expected results of its homebuilding and financial services activities for the third quarter of 2022:




New Orders

16,000 - 18,000


Deliveries

17,000 - 18,500


Average Sales Price

Slightly higher than Q2 2022


Gross Margin % on Home Sales

28.5% - 29.5%


S,G&A as a % of Home Sales

6.0% - 6.5%


Financial Services Operating Earnings

$70 million - $75 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, including lumber, and labor; cost increases related to real estate taxes and insurance; increased cost of mortgage financing for homebuyers, 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 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; possible 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, 2021. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

A conference call to discuss the Company's second quarter earnings will be held at 11:00 a.m. Eastern Time on Tuesday, June 21, 2022. 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 203-369-0110 and entering 5723593 as the confirmation number.

 

LENNAR CORPORATION AND SUBSIDIARIES
Selected Revenues and Operating Information
(In thousands, except per share amounts)
(unaudited)



Three Months Ended


Six Months Ended


May 31,


May 31,


2022


2021


2022


2021

Revenues:








Homebuilding

$      7,977,982


6,028,041


13,730,187


10,971,097

Financial Services

200,166


218,747


376,867


462,816

Multifamily

176,021


177,473


443,380


308,916

Lennar Other

4,527


5,984


11,778


12,884

Total revenues

$      8,358,696


6,430,245


14,562,212


11,755,713









Homebuilding operating earnings

$      1,880,411


1,112,475


2,990,261


1,945,655

Financial Services operating earnings

103,935


121,320


194,726


267,527

Multifamily operating earnings

668


22,397


6,095


21,523

Lennar Other operating earnings (loss)

(108,424)


(54,097)


(511,558)


417,249

Corporate general and administrative expenses

(105,207)


(90,717)


(218,868)


(201,248)

Charitable foundation contribution

(16,549)


(14,493)


(29,087)


(26,807)

Earnings before income taxes

1,754,834


1,096,885


2,431,569


2,423,899

Provision for income taxes

(432,276)


(260,113)


(599,696)


(570,218)

Net earnings (including net earnings attributable to noncontrolling interests)

1,322,558


836,772


1,831,873


1,853,681

Less: Net earnings attributable to noncontrolling interests

1,802


5,409


7,536


20,949

Net earnings attributable to Lennar

$      1,320,756


831,363


1,824,337


1,832,732









Average shares outstanding:








Basic

289,895


308,893


291,913


308,957

Diluted

289,895


308,893


291,913


308,957









Earnings per share:








Basic

$                4.50


2.66


6.17


5.86

Diluted

$                4.49


2.65


6.16


5.85









Supplemental information:








Interest incurred (1)

$           61,798


71,453


121,732


142,517









EBIT (2):








Net earnings attributable to Lennar

$      1,320,756


831,363


1,824,337


1,832,732

Provision for income taxes

432,276


260,113


599,696


570,218

Interest expense included in:








Costs of homes sold

77,608


88,761


137,766


163,708

Costs of land sold

87


633


204


1,192

Homebuilding other expense, net

5,338


5,269


10,574


10,200

Total interest expense

83,033


94,663


148,544


175,100

EBIT

$      1,836,065


1,186,139


2,572,577


2,578,050



(1)

Amount represents interest incurred related to homebuilding debt.

(2)

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

 

LENNAR CORPORATION AND SUBSIDIARIES
Segment Information
(In thousands)
(unaudited)



Three Months Ended


Six Months Ended


May 31,


May 31,


2022


2021


2022


2021

Homebuilding revenues:








Sales of homes

$      7,963,683


5,980,731


13,685,440


10,871,645

Sales of land

7,524


38,785


31,491


86,428

Other homebuilding

6,775


8,525


13,256


13,024

  Total homebuilding revenues

7,977,982


6,028,041


13,730,187


10,971,097









Homebuilding costs and expenses:








Costs of homes sold

5,610,783


4,421,373


9,795,647


8,088,235

Costs of land sold

7,815


32,979


36,371


74,167

Selling, general and administrative

486,555


455,164


915,033


865,400

  Total homebuilding costs and expenses

6,105,153


4,909,516


10,747,051


9,027,802

Homebuilding net margins

1,872,829


1,118,525


2,983,136


1,943,295

Homebuilding equity in earnings (loss) from unconsolidated entities

4,862


(1,688)


4,576


(6,253)

Homebuilding other income (expense), net

2,720


(4,362)


2,549


8,613

Homebuilding operating earnings

$      1,880,411


1,112,475


2,990,261


1,945,655









Financial Services revenues

$         200,166


218,747


376,867


462,816

Financial Services costs and expenses

96,231


97,427


182,141


195,289

Financial Services operating earnings

$         103,935


121,320


194,726


267,527









Multifamily revenues

$         176,021


177,473


443,380


308,916

Multifamily costs and expenses

175,152


168,930


438,889


299,979

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

(201)


13,854


1,604


12,586

Multifamily operating earnings

$                 668


22,397


6,095


21,523









Lennar Other revenues

$              4,527


5,984


11,778


12,884

Lennar Other costs and expenses

8,236


5,732


13,643


9,984

Lennar Other equity in earnings (loss) from unconsolidated entities, other income (expense), net, and other gain (loss) (1)

(26,750)


218,276


(36,558)


217,229

Lennar Other unrealized gain (loss) from technology investments (2)

(77,965)


(272,625)


(473,135)


197,120

Lennar Other operating earnings (loss)

$        (108,424)


(54,097)


(511,558)


417,249



(1)

During both the three and six months ended May 31, 2021, the Company realized a gain of $151.5 million on the sale of its residential solar business.

(2)

The following is a detail of Lennar Other unrealized gain (loss) from technology investments:




Three Months Ended


Six Months Ended


May 31,


May 31,


2022


2021


2022


2021

Blend Labs (BLND) mark-to-market

$             (13,550)



(20,992)


Hippo (HIPO) mark-to-market

(37,946)



(162,403)


Opendoor (OPEN) mark-to-market

(20,999)


(234,290)


(164,360)


235,455

SmartRent (SMRT) mark-to-market

(3,950)



(48,313)


Sonder (SOND) mark-to-market

(1,626)



(2,132)


Sunnova (NOVA) mark-to-market

106


(38,335)


(74,935)


(38,335)


$             (77,965)


(272,625)


(473,135)


197,120

 

LENNAR CORPORATION AND SUBSIDIARIES
Summary of Deliveries, New Orders and Backlog
(Dollars in thousands, except average sales price)
(unaudited)

Lennar's reportable homebuilding segments and all other homebuilding operations not required to be reported separately have divisions located in:

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


For the Three Months Ended May 31,


2022


2021


2022


2021


2022


2021

Deliveries:

Homes


Dollar Value


Average Sales Price

East

5,198


4,480


$  2,225,725


1,560,934


$     428,000


348,000

Central

2,944


2,761


1,283,763


1,093,190


436,000


396,000

Texas

3,288


2,747


1,093,533


790,391


333,000


288,000

West

5,110


4,502


3,367,261


2,543,263


659,000


565,000

Other

9


3


9,159


2,857


1,018,000


952,000

Total

16,549


14,493


$  7,979,441


5,990,635


$     483,000


414,000

Of the total homes delivered listed above, 44 homes with a dollar value of $15.8 million and an average sales price of $358,000 represent home deliveries from unconsolidated entities for the three months ended May 31, 2022, compared to 31 home deliveries with a dollar value of $9.9 million and an average sales price of $319,000 for the three months ended May 31, 2021.


At May 31,


For the Three Months Ended May 31,


2022


2021


2022


2021


2022


2021


2022


2021

New Orders:

Active Communities


Homes


Dollar Value


Average Sales Price

East

354


351


5,973


5,351


$  2,753,770


1,987,929


$     461,000


372,000

Central

315


297


3,576


3,416


1,663,354


1,399,730


465,000


410,000

Texas

205


232


3,375


3,250


1,189,263


1,000,013


352,000


308,000

West

348


342


4,858


5,135


3,482,679


3,172,569


717,000


618,000

Other

3


3


10


5


9,203


5,146


920,000


1,029,000

Total

1,225


1,225


17,792


17,157


$  9,098,269


7,565,387


$     511,000


441,000

Of the total homes listed above, 60 homes with a dollar value of $30.8 million and an average sales price of $514,000 represent homes in seven active communities from unconsolidated entities for the three months ended May 31, 2022, compared to 32 homes with a dollar value of $9.9 million and an average sales price of $373,000 in four active communities for the three months ended May 31, 2021.


For the Six Months Ended May 31,


2022


2021


2022


2021


2022


2021

Deliveries:

Homes


Dollar Value


Average Sales Price

East

9,280


8,400


$  3,898,097


2,912,235


$     420,000


347,000

Central

5,465


5,180


2,389,692


2,019,628


437,000


390,000

Texas

5,825


5,096


1,899,163


1,426,802


326,000


280,000

West

8,502


8,124


5,509,465


4,520,071


648,000


556,000

Other

15


7


14,161


6,504


944,000


929,000

Total

29,087


26,807


$  13,710,578


10,885,240


$     472,000


406,000

Of the total homes delivered listed above, 69 homes with a dollar value of $25.1 million and an average sales price of $364,000 represent home deliveries from unconsolidated entities for the six months ended May 31, 2022, compared to 43 home deliveries with a dollar value of $13.6 million and an average sales price of $316,000 for the six months ended May 31, 2021.


For the Six Months Ended May 31,


2022


2021


2022


2021


2022


2021

New Orders:

Homes


Dollar Value


Average Sales Price

East

10,883


10,165


$  4,886,826


3,688,041


$     449,000


363,000

Central

6,688


6,742


3,065,492


2,733,356


458,000


405,000

Texas

6,141


6,025


2,111,048


1,812,182


344,000


301,000

West

9,812


9,787


6,818,611


5,864,964


695,000


599,000

Other

15


8


13,831


8,121


922,000


1,015,000

Total

33,539


32,727


$  16,895,808


14,106,664


$     504,000


431,000

Of the total new orders listed above, 104 homes with a dollar value of $48.2 million and an average sales price of $463,000 represent new orders from unconsolidated entities for the six months ended May 31, 2022, compared to 67 new orders with a dollar value of $23.5 million and an average sales price of $351,000 for the six months ended May 31, 2021.


May 31,


2022


2021


2022


2021


2022


2021

Backlog:

Homes


Dollar Value


Average Sales Price

East

9,882


7,778


$  4,566,295


3,086,740


$     462,000


397,000

Central

6,381


5,933


3,010,596


2,475,900


472,000


417,000

Texas

4,582


3,752


1,665,155


1,209,965


363,000


322,000

West

7,775


7,275


5,444,307


4,258,324


700,000


585,000

Other

4


3


3,611


3,465


903,000


1,155,000

Total

28,624


24,741


$  14,689,964


11,034,394


$     513,000


446,000

Of the total homes in backlog listed above, 114 homes with a backlog dollar value of $51.7 million and an average sales price of $453,000 represent the backlog from unconsolidated entities at May 31, 2022, compared to 62 homes with a backlog dollar value of $21.4 million and an average sales price of $345,000 at May 31, 2021. During the six months ended May 31, 2022, the Company acquired 347 homes and 54 homes in backlog in the East and Central Homebuilding segment, respectively.

 

LENNAR CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)



May 31,


November 30,


2022


2021


(unaudited)


(audited)

ASSETS




Homebuilding:




Cash and cash equivalents

$                     1,314,741


2,735,213

Restricted cash

28,440


21,927

Receivables, net

508,638


490,278

Inventories:




  Finished homes and construction in progress

12,811,985


10,446,139

  Land and land under development

7,590,237


7,108,142

  Consolidated inventory not owned

1,687,277


1,161,023

Total inventories

22,089,499


18,715,304

Investments in unconsolidated entities

1,083,813


972,084

Goodwill

3,442,359


3,442,359

Other assets

1,226,192


1,090,654


29,693,682


27,467,819

Financial Services

2,359,675


2,964,367

Multifamily

1,277,607


1,311,747

Lennar Other

975,238


1,463,845

Total assets

$                   34,306,202


33,207,778

LIABILITIES AND EQUITY




Homebuilding:




Accounts payable

$                     1,555,283


1,321,247

Liabilities related to consolidated inventory not owned

1,414,663


976,602

Senior notes and other debts payable, net

4,645,791


4,652,338

Other liabilities

2,997,475


2,920,055


10,613,212


9,870,242

Financial Services

1,470,688


1,906,343

Multifamily

323,799


288,930

Lennar Other

108,729


145,981

Total liabilities

12,516,428


12,211,496

Stockholders' equity:




Class A common stock of $0.10 par value

25,582


30,050

Class B common stock of $0.10 par value

3,660


3,944

Additional paid-in capital

5,355,182


8,807,891

Retained earnings

16,288,698


14,685,329

Treasury stock

(76,615)


(2,709,448)

Accumulated other comprehensive income (loss)

1,748


(1,341)

Total stockholders' equity

21,598,255


20,816,425

Noncontrolling interests

191,519


179,857

Total equity

21,789,774


20,996,282

Total liabilities and equity

$                   34,306,202


33,207,778

 

LENNAR CORPORATION AND SUBSIDIARIES
Supplemental Data
(Dollars in thousands)
(unaudited)



May 31,


November 30,


May 31,


2022


2021


2021

Homebuilding debt

$     4,645,791


4,652,338


5,894,342

Stockholders' equity

21,598,255


20,816,425


19,576,108

Total capital

$   26,244,046


25,468,763


25,470,450

Homebuilding debt to total capital

17.7 %


18.3 %


23.1 %







Homebuilding debt

$     4,645,791


4,652,338


5,894,342

Less: Homebuilding cash and cash equivalents

1,314,741


2,735,213


2,581,583

Net homebuilding debt

$     3,331,050


1,917,125


3,312,759

Net homebuilding debt to total capital (1)

13.4 %


8.4 %


14.5 %



(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:
Allison Bober
Investor Relations
Lennar Corporation
(305) 485-2038

Cision View original content:https://www.prnewswire.com/news-releases/lennar-reports-second-quarter-2022-results-301571651.html

SOURCE Lennar Corporation