Lennar Reports Second Quarter EPS of $2.65

·21 min read

MIAMI, June 16, 2021 /PRNewswire/ --

  • Net earnings of $831.4 million, or $2.65 per diluted share, compared to net earnings of $517.4 million, or $1.65 per diluted share – both up 61%

  • Deliveries of 14,493 homes – up 14%

  • New orders of 17,157 homes – up 32%; new orders dollar value of $7.6 billion – up 56%

  • Backlog of 24,741 homes – up 38%; backlog dollar value of $11.0 billion – up 56%

  • Revenues of $6.4 billion – up 22%

  • Homebuilding net margins of $1.1 billion, compared to $655.1 million

  • Financial Services operating earnings of $121.2 million, compared to $150.6 million (including a $61.4 million gain on deconsolidation)

  • Multifamily operating earnings of $22.4 million, compared to operating loss of $0.6 million

  • Lennar Other operating loss of $54.1 million, compared to $18.0 million

  • Homebuilding cash and cash equivalents of $2.6 billion

  • Controlled homesites as a percentage of total owned and controlled homesites increased to 50%, compared to 32%

  • No borrowings under the Company's $2.5 billion revolving credit facility

  • Homebuilding debt to total capital of 23.1%, compared to 31.2%

  • Subsequent to May 31, 2021:

Lennar Corporation (NYSE: LEN and LEN.B), one of the nation's leading homebuilders, today reported results for its second quarter ended May 31, 2021. Second quarter net earnings attributable to Lennar in 2021 were $831.4 million, or $2.65 per diluted share, compared to second quarter net earnings attributable to Lennar in 2020 of $517.4 million, or $1.65 per diluted share.

Stuart Miller, Executive Chairman of Lennar, said, "We are pleased to announce our results for the second quarter where we achieved net earnings of $831.4 million, or $2.65 per diluted share, compared to $517.4 million, or $1.65 per diluted share in the prior year. Our second quarter results benefited from the exceptional performance of our core homebuilding and financial services businesses combined with robust market conditions."

Mr. Miller continued, "Excluding certain non-operational gains and losses, our second quarter net earnings were $923.6 million, or $2.95 per diluted share. This number excludes the mark to market losses on the significant stock price volatility of certain of our strategic technology investments and the gain on the sale of our solar business."

"During the second quarter, the housing market remained very strong across the country, even as interest rates mildly ticked up. A combination of strong personal savings rates during the pandemic, strong stimulus from the government and a developing return to normalcy continued to drive the economy forward while bringing the housing market to new heights."

"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 23.1%, an all-time Company low. With regards to the previously announced potential tax-free spin-off of certain assets, given the strength of the market which has accelerated our earnings and equity growth, we have slowed progress this quarter in order to focus on upsizing the asset base of the businesses we would like to spin-off and are targeting an asset base of $5-$6 billion, compared to $3-$5 billion we discussed last quarter."

Rick Beckwitt, Co-Chief Executive Officer and Co-President of Lennar, said, "Our second quarter homebuilding gross margin of 26.1% was the highest second quarter percentage in the Company's history, and a 450 basis point improvement over the prior year. The improvement was driven by a higher than expected sales price per home delivered of $414,000 reflecting higher sales prices in most of our markets, partially offset by higher land and construction costs. Even as we continue to close out communities at a faster pace than expected, we grew community count sequentially this quarter, and still expect our community count to grow approximately 10% year-over-year, by year-end."

Mr. Beckwitt continued, "Our second quarter new orders were 17,157 homes, a 32% increase over last year, while our new home deliveries were 14,493 homes, a 14% improvement over last year. Our homebuilding SG&A of 7.6% was the lowest second quarter percentage in the Company's history and reflects continued improvement as we incorporate technology driven innovation across our platform. Accordingly, our net margin was 18.5%, an all-time Company record."

Jon Jaffe, Co-Chief Executive Officer and Co-President of Lennar, said, "During the quarter, our homebuilding machine continued to significantly focus on production, with our quarterly starts pace increasing to 5.5 homes per community in the second quarter from 2.9 homes per community last year, positioning our company for growth through the year. We continue to focus on production costs and cycle times as the homebuilding industry ramps up to meet growing demand. Lennar is uniquely positioned with our size, scale and production-oriented Everything's Included® business model to mitigate the well documented industry supply challenges."

Mr. Jaffe continued, "On the land front, we continued our previously stated strategy of improving our controlled homesite percentage which increased by 1,800 basis points year over year to end the second quarter at 50%, while reducing our years owned supply of homesites to 3.3 years from 3.9 years last year."

Mr. Miller concluded, "The housing market has proven to be robust in the current environment and we expect it to continue to be a significant driver in the recovery of the overall economy. As we look ahead to our third quarter, we expect to deliver between 15,800 – 16,100 homes while we expect homebuilding gross margins to continue to exceed prior guidance and be between 27.0% - 27.5%. With an excellent balance sheet and continued execution of our core operating strategies, we are extremely well positioned for a very strong 2021."

RESULTS OF OPERATIONS

THREE MONTHS ENDED MAY 31, 2021 COMPARED TO
THREE MONTHS ENDED MAY 31, 2020

Homebuilding

Revenues from home sales increased 21% in the second quarter of 2021 to $6.0 billion from $4.9 billion in the second quarter of 2020. Revenues were higher primarily due to a 14% increase in the number of home deliveries, excluding unconsolidated entities, and a 6% increase in the average sales price. New home deliveries, excluding unconsolidated entities, increased to 14,462 homes in the second quarter of 2021 from 12,653 homes in the second quarter of 2020. The average sales price of homes delivered was $414,000 in the second quarter of 2021, compared to $389,000 in the second quarter of 2020.

Gross margin on home sales were $1.6 billion, or 26.1%, in the second quarter of 2021, compared to $1.1 billion, or 21.6%, in the second quarter of 2020. The gross margin percentage on home sales increased primarily as a result of pricing power as the increase in revenue per square foot outpaced the increase in cost per square foot. Additionally, the Company continued to focus on controlling construction costs. Gross margin on land sales in the second quarter of 2021 was $5.8 million compared to a loss of $23.5 million in the second quarter of 2020. The loss in the second quarter of 2020 was primarily due to a write-off of costs 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 $455.2 million in the second quarter of 2021, compared to $407.2 million in the second quarter of 2020. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 7.6% in the second quarter of 2021, from 8.3% in the second quarter of 2020. This was the lowest percentage for a second 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 $121.2 million in the second quarter of 2021, compared to $150.6 million in the second quarter of 2020 (which included $147.3 million of operating earnings and an add back of $3.3 million of net loss attributable to noncontrolling interests). The second quarter of 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 margin in the mortgage business and an increase in volume and margin in the title business.

Other Ancillary Businesses

Operating earnings for the Multifamily segment were $22.4 million in the second quarter of 2021, compared to an operating loss of $0.6 million in the second quarter of 2020. Operating loss for the Lennar Other segment was $54.1 million in the second quarter of 2021, compared to $18.0 million in the second quarter of 2020. In the second quarter of 2021, the Company recorded mark to market losses on its Opendoor and Sunnova Energy International Inc. ("Sunnova") investments of $234.3 million and $38.3 million, respectively. This was partially offset by a gain of $151.5 million recognized during the quarter related to the sale of the Company's solar business to Sunnova.

RESULTS OF OPERATIONS

SIX MONTHS ENDED MAY 31, 2021 COMPARED TO
SIX MONTHS ENDED MAY 31, 2020

Homebuilding

Revenues from home sales increased 20% in the six months ended May 31, 2021 to $10.9 billion from $9.1 billion in the six months ended May 31, 2020. Revenues were higher primarily due to a 17% increase in the number of home deliveries, excluding unconsolidated entities. New home deliveries, excluding unconsolidated entities, increased to 26,764 homes in the six months ended May 31, 2021 from 22,966 homes in the six months ended May 31, 2020. The average sales price of homes delivered was $406,000 in the six months ended May 31, 2021, compared to $395,000 in the six months ended May 31, 2020.

Gross margin on home sales were $2.8 billion, or 25.6%, in the six months ended May 31, 2021, compared to $1.9 billion or 21.1%, in the six months ended May 31, 2020. The gross margin percentage on home sales increased primarily as a result of pricing power as the increase in revenue per square foot outpaced the increase in cost per square foot. Additionally, the Company continued to focus on controlling construction costs. Gross margin on land sales in the six months ended May 31, 2021 was $12.3 million, compared to a loss of $23.8 million in the six months ended May 31, 2020. The loss in the six months ended May 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 $865.4 million in the six months ended May 31, 2021, compared to $786.1 million in the six months ended May 31, 2020. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 8.0% in the six months ended May 31, 2021, from 8.7% in the six months ended May 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 $267.4 million in the six months ended May 31, 2021, compared to $208.8 million in the six months ended May 31, 2020 (which included $194.6 million operating earnings and an add back of $14.1 million net loss attributable to noncontrolling interests). The six months ended May 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 $21.5 million in the six months ended May 31, 2021, compared to operating earnings of $1.1 million in the six months ended May 31, 2020. Operating earnings for the Lennar Other segment were $417.2 million in the six months ended May 31, 2021, compared to an operating loss of $17.1 million in the six months ended May 31, 2020. The operating earnings for the six months ended May 31, 2021 was primarily due to the net gain related to the mark to market of our shareholdings in Opendoor, which began trading on the Nasdaq stock market in December 2020 and the gain on the sale of the solar business to Sunnova.

Tax Rate

For the six months ended May 31, 2021 and 2020, the Company had a tax provision of $570.2 million and $192.8 million, respectively, which resulted in an overall effective income tax rate of 23.7% and 17.4%, respectively. In the six months ended May 31, 2020, the overall effective income tax rate was lower primarily due to the extension of the new energy efficient home tax credit during the first quarter of 2020.

Debt Transaction

Subsequent to May 31, 2021, the Company retired $300 million aggregate principal amount of its 6.25% senior notes due December 2021.

Share Repurchases

During the second quarter of 2021, the Company repurchased a total of one million shares of its Class A common stock for $98 million at an average per share price of $98.44. For the six months ended May 31, 2021, the Company repurchased a total of 1.5 million shares of its Class A common stock for $142 million at an average per share price of $93.73.

Liquidity

At May 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 third quarter of 2021:

New Orders

16,000 - 16,300

Deliveries

15,800 - 16,100

Average Sales Price

$420,000 - $425,000

Gross Margin % on Home Sales

27.0% - 27.5%

S,G&A as a % of Home Sales

7.3% - 7.4%

Financial Services Operating Earnings

$95 million - $100 million

The following are the Company's expected results of its homebuilding and financial services activities for fiscal year 2021:

Deliveries

62,000 - 64,000

Average Sales Price

$420,000

Gross Margin % on Home Sales

26.5% - 27.0%

S,G&A as a % of Home Sales

7.3% - 7.5%

Financial Services Operating Earnings

$460 million - $470 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; increases in operating costs, including costs related to construction materials, labor, real estate taxes and insurance, which exceed our ability to increase prices, both in our Homebuilding and Multifamily businesses; reduced availability of mortgage financing or increased interest rates; decreased demand for our homes or Multifamily rental apartments; natural disasters or catastrophic events for which our insurance may not provide adequate coverage; our inability to successfully execute our strategies, including our land lighter strategy 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 second quarter earnings will be held at 10:30 a.m. Eastern Time on Thursday, June 17, 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 203-369-3901 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,


2021


2020


2021


2020

Revenues:








Homebuilding

$

6,028,041



4,949,484



10,971,097



9,121,600


Financial Services

218,747



196,263



462,816



394,924


Multifamily

177,473



123,117



308,916



255,734


Lennar Other

5,984



18,509



12,884



20,452


Total revenues

$

6,430,245



5,287,373



11,755,713



9,792,710










Homebuilding operating earnings

$

1,112,475



631,361



1,945,655



1,091,759


Financial Services operating earnings

121,320



147,326



267,527



194,643


Multifamily operating earnings (loss)

22,397



(638)



21,523



1,147


Lennar Other operating earnings (loss)

(54,097)



(18,021)



417,249



(17,122)


Corporate general and administrative expenses

(90,717)



(78,183)



(201,248)



(160,817)


Charitable foundation contribution

(14,493)



(5,268)



(26,807)



(9,481)


Earnings before income taxes

1,096,885



676,577



2,423,899



1,100,129


Provision for income taxes

(260,113)



(160,479)



(570,218)



(192,808)


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

836,772



516,098



1,853,681



907,321


Less: Net earnings (loss) attributable to noncontrolling interests

5,409



(1,308)



20,949



(8,537)


Net earnings attributable to Lennar

$

831,363



517,406



1,832,732



915,858










Average shares outstanding:








Basic

308,893



308,373



308,957



309,793


Diluted

308,893



308,373



308,957



309,794










Earnings per share:








Basic

$

2.66



1.66



5.86



2.92


Diluted

$

2.65



1.65



5.85



2.91










Supplemental information:








Interest incurred (1)

$

71,453



90,907



142,517



184,198










EBIT (2):








Net earnings attributable to Lennar

$

831,363



517,406



1,832,732



915,858


Provision for income taxes

260,113



160,479



570,218



192,808


Interest expense included in:








Costs of homes sold

88,761



81,698



163,708



154,520


Costs of land sold

633



335



1,192



532


Homebuilding other expense, net

5,269



5,743



10,200



11,678


Total interest expense

94,663



87,776



175,100



166,730


EBIT

$

1,186,139



765,661



2,578,050



1,275,396




(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,


2021


2020


2021


2020

Homebuilding revenues:








Sales of homes

$

5,980,731



4,925,081



10,871,645



9,065,848


Sales of land

38,785



19,833



86,428



46,700


Other homebuilding

8,525



4,570



13,024



9,052


Total homebuilding revenues

6,028,041



4,949,484



10,971,097



9,121,600










Homebuilding costs and expenses:








Costs of homes sold

4,421,373



3,862,771



8,088,235



7,154,550


Costs of land sold

32,979



43,369



74,167



70,504


Selling, general and administrative

455,164



407,191



865,400



786,083


Total homebuilding costs and expenses

4,909,516



4,313,331



9,027,802



8,011,137


Homebuilding net margins

1,118,525



636,153



1,943,295



1,110,463


Homebuilding equity in loss from unconsolidated entities

(1,688)



(9,100)



(6,253)



(13,646)


Homebuilding other income (expense), net

(4,362)



4,308



8,613



(5,058)


Homebuilding operating earnings

$

1,112,475



631,361



1,945,655



1,091,759










Financial Services revenues

$

218,747



196,263



462,816



394,924


Financial Services costs and expenses

97,427



110,355



195,289



261,699


Financial Services gain on deconsolidation



61,418





61,418


Financial Services operating earnings

$

121,320



147,326



267,527



194,643










Multifamily revenues

$

177,473



123,117



308,916



255,734


Multifamily costs and expenses

168,930



123,473



299,979



260,821


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

13,854



(282)



12,586



6,234


Multifamily operating earnings (loss)

$

22,397



(638)



21,523



1,147










Lennar Other revenues

$

5,984



18,509



12,884



20,452


Lennar Other costs and expenses

5,732



(1,072)



9,984



1,502


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

63,221



(37,602)



62,174



(36,072)


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

(117,570)





352,175




Lennar Other operating earnings (loss)

$

(54,097)



(18,021)



417,249



(17,122)


(1)

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


Three Months Ended


Six Months Ended


May 31,


May 31,


2021


2020


2021


2020

Opendoor (OPEN) mark to market

$

(234,290)




235,455



Sunnova (NOVA) mark to market

(38,335)




(38,335)



Gain on sale of solar business

151,475




151,475



Other realized gain

3,580




3,580




$

(117,570)




352,175



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 May 31,


2021


2020


2021


2020


2021


2020

Deliveries:

Homes


Dollar Value


Average Sales Price

East

4,480



3,814



$

...

1,560,934



1,282,553



$

348,000



336,000


Central

2,761


...

2,579



1,093,190



984,247



396,000



382,000


Texas

2,747



2,462



790,391



694,110



288,000



282,000


West

4,502



3,804



2,543,263



1,957,435



565,000



515,000


Other

3



13



2,857



13,013



952,000



1,001,000


Total

14,493



12,672



$

5,990,635



4,931,358



$

413,000



389,000


Of the total homes delivered listed above, 31 homes with a dollar value of $9.9 million and an average sales price of $319,000 represent home deliveries from unconsolidated entities for the three months ended May 31, 2021, compared to 19 home deliveries with a dollar value of $6.3 million and an average sales price of $330,000 for the three months ended May 31, 2020.


At May 31,


For the Three Months Ended May 31,


2021


2020


2021


2020


2021


2020


2021


2020

New Orders:

Active Communities


Homes


Dollar Value


Average Sales Price

East

351



344



5,351



4,126



$

1,987,929



1,360,519



$

372,000



330,000


Central

297



325



3,416



2,699



1,399,730



1,024,724



410,000



380,000


Texas

232



221



3,250



2,582



1,000,013



670,139



308,000



260,000


West

342



352



5,135



3,608



3,172,569



1,802,705



618,000



500,000


Other

3



3



5





5,146





1,029,000




Total

1,225



1,245



17,157



13,015



$

7,565,387



4,858,087



$

441,000



373,000


Of the total homes listed above, 32 homes with a dollar value of $9.9 million and an average sales price of $373,000 represent homes in four active communities from unconsolidated entities for the three months ended May 31, 2021, compared to 25 homes with a dollar value of $9.0 million and an average sales price of $361,000 in four active communities for the three months ended May 31, 2020.


For the Six Months Ended May 31,


2021


2020


2021


2020


2021


2020

Deliveries:

Homes


Dollar Value


Average Sales Price

East

8,400



7,202



$

2,912,235



2,436,268



$

347,000



338,000


Central

5,180



4,622



2,019,628



1,770,945



390,000



383,000


Texas

5,096



4,039



1,426,802



1,157,907



280,000



287,000


West

8,124



7,108



4,520,071



3,688,948



556,000



519,000


Other

7



22



6,504



21,052



929,000



957,000


Total

26,807



22,993



$

10,885,240



9,075,120



$

406,000



395,000


Of the total homes delivered listed above, 43 homes with a dollar value of $13.6 million and an average sales price of $316,000 represent home deliveries from unconsolidated entities for the six months ended May 31, 2021, compared to 27 home deliveries with a dollar value of $9.3 million and an average sales price of $343,000 for the six months ended May 31, 2020.


For the Six Months Ended May 31,


2021


2020


2021


2020


2021


2020

New Orders:

Homes


Dollar Value


Average Sales Price

East

10,165



7,857



$

3,688,041



2,634,872



$

363,000



335,000


Central

6,742



5,366



2,733,356



2,043,167



405,000



381,000


Texas

6,025



4,581



1,812,182



1,243,218



301,000



271,000


West

9,787



7,573



5,864,964



3,928,337



599,000



519,000


Other

8



14



8,121



13,581



1,015,000



970,000


Total

32,727



25,391



$

14,106,664



9,863,175



$

431,000



388,000


Of the total homes listed above, 67 homes with a dollar value of $23.5 million and an average sales price of $351,000 represent homes from unconsolidated entities for the six months ended May 31, 2021, compared to 51 homes with a dollar value of $17.1 million and an average sales price of $335,000 for the six months ended May 31, 2020.


At May 31,


2021


2020


2021


2020


2021


2020

Backlog:

Homes


Dollar Value


Average Sales Price

East

7,778



6,345



$

3,086,740



2,224,974



$

397,000



351,000


Central

5,933



3,894



2,475,900



1,516,188



417,000



389,000


Texas

3,752



2,712



1,209,965



798,648



322,000



294,000


West

7,275



5,023



4,258,324



2,547,649



585,000



507,000


Other

3



1



3,465



1,138



1,155,000



1,138,000


Total

24,741



17,975



$

11,034,394



7,088,597



$

446,000



394,000


Of the total homes in backlog listed above, 62 homes with a backlog dollar value of $21.4 million and an average sales price of $345,000 represent the backlog from unconsolidated entities at May 31, 2021, compared to 55 homes with a backlog dollar value of $18.0 million and an average sales price of $327,000 at May 31, 2020.


LENNAR CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except per share amounts)

(unaudited)



May 31,


November 30,


2021


2020

ASSETS




Homebuilding:




Cash and cash equivalents

$

2,581,583



2,703,986


Restricted cash

35,637



15,211


Receivables, net

353,910



298,671


Inventories:




Finished homes and construction in progress

10,418,116



8,593,399


Land and land under development

7,090,880



7,495,262


Consolidated inventory not owned

910,003



836,567


Total inventories

18,418,999



16,925,228


Investments in unconsolidated entities

1,010,256



953,177


Goodwill

3,442,359



3,442,359


Other assets

1,030,681



1,190,793



26,873,425



25,529,425


Financial Services

2,066,674



2,708,118


Multifamily

1,209,270



1,175,908


Lennar Other

1,073,858



521,726


Total assets

$

31,223,227



29,935,177


LIABILITIES AND EQUITY




Homebuilding:




Accounts payable

$

1,171,358



1,037,338


Liabilities related to consolidated inventory not owned

769,225



706,691


Senior notes and other debts payable, net

5,894,342



5,955,758


Other liabilities

2,281,508



2,225,864



10,116,433



9,925,651


Financial Services

1,084,838



1,644,248


Multifamily

255,327



252,911


Lennar Other

64,531



12,966


Total liabilities

11,521,129



11,835,776


Stockholders' equity:




Preferred stock




Class A common stock of $0.10 par value

30,049



29,894


Class B common stock of $0.10 par value

3,944



3,944


Additional paid-in capital

8,755,020



8,676,056


Retained earnings

12,241,400



10,564,994


Treasury stock

(1,452,874)



(1,279,227)


Accumulated other comprehensive loss

(1,431)



(805)


Total stockholders' equity

19,576,108



17,994,856


Noncontrolling interests

125,990



104,545


Total equity

19,702,098



18,099,401


Total liabilities and equity

$

31,223,227



29,935,177





LENNAR CORPORATION AND SUBSIDIARIES

Supplemental Data

(Dollars in thousands)

(unaudited)



May 31,


November 30,


May 31,


2021


2020


2020

Homebuilding debt

$

5,894,342



5,955,758



7,495,674


Stockholders' equity

19,576,108



17,994,856



16,542,703


Total capital

$

25,470,450



23,950,614



24,038,377


Homebuilding debt to total capital

23.1

%


24.9

%


31.2

%







Homebuilding debt

$

5,894,342



5,955,758



7,495,674


Less: Homebuilding cash and cash equivalents

2,581,583



2,703,986



1,398,682


Net homebuilding debt

$

3,312,759



3,251,772



6,096,992


Net homebuilding debt to total capital (1)

14.5

%


15.3

%


26.9

%



(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.

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SOURCE Lennar Corporation

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