•Net earnings of $1.4 billion, or $4.52 per diluted share, compared to net earnings of $666.4 million, or $2.12 per diluted share – both up over 100%
◦Net earnings were $1.0 billion, or $3.27 per diluted share, excluding the mark to market gains on the Company's strategic investments
•Deliveries of 15,199 homes – up 10%
•New orders of 16,277 homes – up 5%; new orders dollar value of $7.5 billion – up 19%
•Backlog of 25,819 homes – up 31%; backlog dollar value of $12.0 billion – up 52%
•Revenues of $6.9 billion – up 18%
•Homebuilding net margins of $1.3 billion, compared to $826.6 million
◦Gross margin on home sales of 27.3%, compared to 23.1%
◦S,G&A expenses as a % of revenues from home sales of 7.0%, compared to 8.0%
◦Net margin on home sales of 20.3%, compared to 15.1%
•Financial Services operating earnings of $111.9 million, compared to operating earnings of $135.1 million
•Multifamily operating loss of $9.4 million, compared to operating loss of $5.1 million
•Lennar Other operating earnings of $492.0 million, compared to operating earnings of $8.0 million
•Homebuilding cash and cash equivalents of $2.6 billion
•Controlled homesites as a percentage of total owned and controlled homesites increased to 53%, compared to 35%
•No borrowings under the Company's $2.5 billion revolving credit facility
•Retired $300 million of homebuilding senior notes due December 2021
•Homebuilding debt to total capital of 21.2%, compared to 29.5%
•Repurchased 2.5 million of Lennar Class A common stock for $246.4 million at an average per share price of $98.53
•S&P upgraded the Company to Investment Grade. The Company now has an Investment Grade rating from all three agencies.
(more)
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Miami, September 20, 2021 -- Lennar Corporation (NYSE: LEN and LEN.B), one of the nation’s leading homebuilders, today reported results for its third quarter ended August 31, 2021. Third quarter net earnings attributable to Lennar in 2021 were $1.4 billion, or $4.52 per diluted share, compared to third quarter net earnings attributable to Lennar in 2020 of $666.4 million, or $2.12 per diluted share.
Stuart Miller, Executive Chairman of Lennar, said, “During the third quarter, our company and the homebuilding industry as a whole continued to experience unprecedented supply chain challenges which we believe will continue into the foreseeable future. As a result, our third quarter deliveries of 15,199 homes were about 600 homes below the low end of our guidance. Additionally, we are adjusting our fourth quarter delivery guidance to, more or less, 18,000 homes, reflecting this supply chain constraint.”
Mr. Miller continued, “Despite missing our delivery guidance, new home demand remains strong, even as the market reverts back to traditional seasonality. This is reflected in our 5% year over year sales growth and third quarter homebuilding gross margin of 27.3%, which was the highest quarterly percentage in the Company's history, and a 420 basis point improvement over the prior year. The improvement was driven by price appreciation as revenue per square foot increased 14% while cost per square foot only increased 8%. Our homebuilding S,G&A of 7.0% was the lowest quarterly percentage in the Company's history, even with the delivery shortfall, and reflects continued improvement as we incorporate technology driven innovation across our platform. Accordingly, our net margin was 20.3%, an all-time Company record, and was the primary driver of our third quarter net earnings of $1.0 billion, or $3.27 per diluted share, excluding mark to market gains on our public strategic technology investments.”
“During the quarter, several of our strategic technology investments went public. Despite some of our investments currently trading at the lower end of their price ranges, they contributed about $500 million of mark to market gains during the quarter. This resulted in reported GAAP third quarter net earnings of $1.4 billion, or $4.52 per diluted share, compared to $666.4 million, or $2.12 per diluted share in the prior year.”
“We ended the quarter with $2.6 billion in cash, no borrowings on our $2.5 billion revolver and a homebuilding debt to capital of 21.2%, an all-time Company low. Our land lighter model resulted in incremental cash flow generation during the third quarter which we used towards an early debt reduction of $300 million and the repurchase of about $250 million of our common stock. These transactions combined with our significant earnings contributed to a return on equity of over 20%.”
Rick Beckwitt, Co-Chief Executive Officer and Co-President of Lennar, said, “Our third quarter community count ended flat year over year primarily due to land supply chain challenges as approvals for permits and entitlements have also been delayed. As a result, we believe our year end community count growth will be closer to 7% than our originally targeted 10% growth. However, we are still making excellent progress on our land light strategy as evidenced by our years owned supply of homesites improving to 3.3 years at the end of the third quarter from 3.8 years at last year’s third quarter, and our controlled homesite percentage increasing to 53% from 35% for those same periods.”
Jon Jaffe, Co-Chief Executive Officer and Co-President of Lennar, said, “During the quarter, our homebuilding machine continued to be laser focused on production, managing carefully through the rapidly changing supply chain issues as they arose. Although supply chain issues are expected to continue, our long-standing Builder of Choice position and Everything’s Included® business model should help to lessen the impact of these challenges. With that said, we also increased our quarterly starts pace to 4.9 homes per community in the third quarter from 4.2 homes per community last year, which will facilitate our growth expectations for 2022.”
Mr. Miller concluded, “The housing market has proven to be strong in the current environment as demand continues to outstrip limited supply. Accordingly, both limited supply and production will prevent excess
3-3-3
production and extend the strong housing market conditions. As we look ahead to our fourth quarter and consider the industry supply chain issues already noted, we expect to deliver about 18,000 homes while we expect homebuilding gross margins to be about 28.0%. With an excellent balance sheet and continued execution of our core operating strategies, we are extremely well positioned to end 2021 on a very strong note.”
RESULTS OF OPERATIONS
THREE MONTHS ENDED AUGUST 31, 2021 COMPARED TO
THREE MONTHS ENDED AUGUST 31, 2020
Homebuilding
Revenues from home sales increased 19% in the third quarter of 2021 to $6.5 billion from $5.5 billion in the third quarter of 2020. Revenues were higher primarily due to a 10% increase in the number of home deliveries and an 8% increase in the average sales price. New home deliveries increased to 15,199 homes in the third quarter of 2021 from 13,842 homes in the third quarter of 2020. The average sales price of homes delivered was $428,000 in the third quarter of 2021, compared to $396,000 in the third quarter of 2020.
Gross margin on home sales were $1.8 billion, or 27.3%, in the third quarter of 2021, compared to $1.3 billion, or 23.1%, in the third quarter of 2020. The gross margin percentage on home sales increased primarily as a result of price appreciation as the increase in revenue per square foot outpaced the increase in cost per square foot.
Selling, general and administrative expenses were $453.7 million in the third quarter of 2021, compared to $435.9 million in the third quarter of 2020. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 7.0% in the third quarter of 2021, from 8.0% in the third quarter of 2020. This was the lowest percentage for a quarter in the Company's history primarily due to a decrease in broker commissions and benefits of the Company's technology efforts.
Financial Services
Operating earnings for the Financial Services segment were $111.9 million in the third quarter of 2021, compared to $135.1 million in the third quarter of 2020. The decrease in operating earnings was primarily due to lower mortgage net margins driven by an increase in competition. This was partially offset by an increase in title operating earnings due to higher volume and an increase in profit per transaction derived from technology initiatives.
Other Ancillary Businesses
Operating loss for the Multifamily segment was $9.4 million in the third quarter of 2021, compared to $5.1 million in the third quarter of 2020. Operating earnings for the Lennar Other segment was $492.0 million in the third quarter of 2021, compared to $8.0 million in the third quarter of 2020. In the third quarter of 2021, the Company recorded mark to market gains on its investments in newly public companies (Hippo, SmartRent and Blend) of $433 million and on its current investments (Opendoor and Sunnova) of $61 million.
4-4-4
RESULTS OF OPERATIONS
NINE MONTHS ENDED AUGUST 31, 2021 COMPARED TO
NINE MONTHS ENDED AUGUST 31, 2020
Homebuilding
Revenues from home sales increased 20% in the nine months ended August 31, 2021 to $17.4 billion from $14.5 billion in the nine months ended August 31, 2020. Revenues were higher primarily due to a 14% increase in the number of home deliveries and a 5% increase in the average sales price. New home deliveries increased to 42,006 homes in the nine months ended August 31, 2021 from 36,835 homes in the nine months ended August 31, 2020. The average sales price of homes delivered was $414,000 in the nine months ended August 31, 2021, compared to $395,000 in the nine months ended August 31, 2020.
Gross margin on home sales were $4.6 billion, or 26.2%, in the nine months ended August 31, 2021, compared to $3.2 billion or 21.8%, in the nine months ended August 31, 2020. The gross margin percentage on home sales increased primarily as a result of price appreciation as the increase in revenue per square foot outpaced the increase in cost per square foot. Gross margin on land sales in the nine months ended August 31, 2021 was $17.9 million, compared to a loss of $21.9 million in the nine months ended August 31, 2020. The loss in the nine months ended August 31, 2020 was primarily due to a write-off of costs in the second quarter of 2020 as a result of Lennar not moving forward with a naval base development in Concord, California, northeast of San Francisco.
Selling, general and administrative expenses were $1.3 billion in the nine months ended August 31, 2021, compared to $1.2 billion in the nine months ended August 31, 2020. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 7.6% in the nine months ended August 31, 2021, from 8.4% in the nine months ended August 31, 2020. The improvement was primarily due to a decrease in broker commissions and benefits of the Company's technology efforts.
Financial Services
Operating earnings for the Financial Services segment were $379.3 million in the nine months ended August 31, 2021, compared to $343.8 million in the nine months ended August 31, 2020 (which included $329.7 million operating earnings and an add back of $14.1 million net loss attributable to noncontrolling interests). The nine months ended August 31, 2020 included a $61.4 million gain on the deconsolidation of a previously consolidated entity. Excluding this gain, the improvement in operating earnings was primarily due to an increase in volume and margin in the mortgage and title businesses.
5-5-5
Other Ancillary Businesses
Operating earnings for the Multifamily segment were $12.1 million in the nine months ended August 31, 2021, compared to an operating loss of $4.0 million in the nine months ended August 31, 2020. Operating earnings for the Lennar Other segment were $909.2 million in the nine months ended August 31, 2021, compared to an operating loss of $9.1 million in the nine months ended August 31, 2020. The operating earnings for the nine months ended August 31, 2021 was primarily due to mark to market gains on strategic investments that went public during the nine months ended August 31, 2021 (Opendoor, Sunnova, Hippo, SmartRent and Blend) and the sale of our solar business to Sunnova.
Tax Rate
For the nine months ended August 31, 2021 and 2020, the Company had a tax provision of $975.4 million and $382.5 million, respectively, which resulted in an overall effective income tax rate of 23.1% and 19.5%, respectively. In the nine months ended August 31, 2021, the overall effective income tax rate was higher primarily due to the extension of the new energy efficient home tax credit during the first quarter of 2020.
Debt Transaction
During the third quarter of 2021, the Company retired $300 million aggregate principal amount of its 6.25% senior notes due December 2021.
Share Repurchases
During the third quarter of 2021, the Company repurchased a total of 2.5 million shares of its Class A common stock for $246.4 million at an average per share price of $98.53. For the nine months ended August 31, 2021, the Company repurchased a total of 4.0 million shares of its Class A common stock for $388.0 million at an average per share price of $96.73.
Liquidity
At August 31, 2021, the Company had $2.6 billion of Homebuilding cash and cash equivalents and no borrowings under its $2.5 billion revolving credit facility, thereby providing $5.1 billion of available capacity.
2021 Guidance
The following are the Company's expected results of its homebuilding and financial services activities for the fourth quarter of 2021:
New Orders
15,200 - 15,400
Deliveries
About 18,000
Average Sales Price
About $445,000
Gross Margin % on Home Sales
About 28.0%
S,G&A as a % of Home Sales
About 6.7%
Financial Services Operating Earnings
$95 million - $105 million
6-6-6
About Lennar
Lennar Corporation, founded in 1954, is one of the nation’s leading builders of quality homes for all generations. Lennar builds affordable, move-up and active adult homes primarily under the Lennar brand name. Lennar’s Financial Services segment provides mortgage financing, title and closing services primarily for buyers of Lennar’s homes and, through LMF Commercial, originates mortgage loans secured primarily by commercial real estate properties throughout the United States. Lennar's Multifamily segment is a nationwide developer of high-quality multifamily rental properties. LENX drives Lennar's technology, innovation and strategic investments. For more information about Lennar, please visit www.lennar.com.
Note Regarding Forward-Looking Statements: Some of the statements in this press release are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995, including statements relating to the homebuilding market and other markets in which we participate. You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those anticipated by the forward-looking statements. Important factors that could cause such differences include the potential negative impact to our business of the ongoing coronavirus (COVID-19) pandemic; slowdowns in real estate markets in regions where we have significant Homebuilding or Multifamily development activities; supply shortages and increased costs related to construction materials and labor; cost increases related to real estate taxes and insurance; reduced availability of mortgage financing, increased interest rates or increased competition in the mortgage industry; reductions in the market value of the Company's investments in public companies; decreased demand for our homes or Multifamily rental apartments; natural disasters or catastrophic events for which our insurance may not provide adequate coverage; our inability to successfully execute our strategies, including our land lighter strategy and our planned spin-off of certain businesses; a decline in the value of the land and home inventories we maintain and resulting possible future writedowns of the carrying value of our real estate assets; unfavorable losses in legal proceedings; conditions in the capital, credit and financial markets; changes in laws, regulations or the regulatory environment affecting our business, and the risks described in our filings with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended November 30, 2020. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
A conference call to discuss the Company’s third quarter earnings will be held at 11:00 a.m. Eastern Time on Tuesday, September 21, 2021. The call will be broadcast live on the Internet and can be accessed through the Company’s website at www.lennar.com. If you are unable to participate in the conference call, the call will be archived at www.lennar.com for 90 days. A replay of the conference call will also be available later that day by calling 203-369-3035 and entering 5723593 as the confirmation number.
###
7-7-7
LENNAR CORPORATION AND SUBSIDIARIES
Selected Revenues and Operating Information
(In thousands, except per share amounts)
(unaudited)
Three Months Ended
Nine Months Ended
August 31,
August 31,
2021
2020
2021
2020
Revenues:
Homebuilding
$
6,558,509
5,505,120
17,529,606
14,626,720
Financial Services
206,973
237,068
669,789
631,992
Multifamily
167,921
115,170
476,837
370,904
Lennar Other
8,000
12,896
20,884
33,348
Total revenues
$
6,941,403
5,870,254
18,697,116
15,662,964
Homebuilding operating earnings
$
1,329,833
813,744
3,275,488
1,905,503
Financial Services operating earnings
112,083
135,079
379,610
329,722
Multifamily operating earnings (loss)
(9,393)
(5,148)
12,130
(4,001)
Lennar Other operating earnings (loss)
491,972
7,999
909,221
(9,123)
Corporate general and administrative expenses
(94,942)
(85,998)
(296,190)
(246,815)
Charitable foundation contribution
(15,199)
(6,663)
(42,006)
(16,144)
Earnings before income taxes
1,814,354
859,013
4,238,253
1,959,142
Provision for income taxes
(405,136)
(189,690)
(975,354)
(382,498)
Net earnings (including net earnings (loss) attributable to noncontrolling interests)
1,409,218
669,323
3,262,899
1,576,644
Less: Net earnings (loss) attributable to noncontrolling interests
2,330
2,905
23,279
(5,632)
Net earnings attributable to Lennar
$
1,406,888
666,418
3,239,620
1,582,276
Average shares outstanding:
Basic
307,296
308,889
308,403
309,492
Diluted
307,296
308,890
308,403
309,493
Earnings per share:
Basic
$
4.52
2.13
10.37
5.05
Diluted
$
4.52
2.12
10.36
5.03
Supplemental information:
Interest incurred (1)
$
68,059
88,149
210,575
272,347
EBIT (2):
Net earnings attributable to Lennar
$
1,406,888
666,418
3,239,620
1,582,276
Provision for income taxes
405,136
189,690
975,354
382,498
Interest expense included in:
Costs of homes sold
85,180
93,124
248,888
247,644
Costs of land sold
1,093
1,035
2,285
1,567
Homebuilding other expense, net
4,928
5,478
15,128
17,155
Total interest expense
91,201
99,637
266,301
266,367
EBIT
$
1,903,225
955,745
4,481,275
2,231,141
(1)Amount represents interest incurred related to homebuilding debt.
(2)EBIT is a non-GAAP financial measure defined as earnings before interest and taxes. This financial measure has been presented because the Company finds it important and useful in evaluating its performance and believes that it helps readers of the Company's financial statements compare its operations with those of its competitors. Although management finds EBIT to be an important measure in conducting and evaluating the Company's operations, this measure has limitations as an analytical tool as it is not reflective of the actual profitability generated by the Company during the period. Management compensates for the limitations of using EBIT by using this non-GAAP measure only to supplement the Company's GAAP results. Due to the limitations discussed, EBIT should not be viewed in isolation, as it is not a substitute for GAAP measures.
8-8-8
LENNAR CORPORATION AND SUBSIDIARIES
Segment Information
(In thousands)
(unaudited)
Three Months Ended
Nine Months Ended
August 31,
August 31,
2021
2020
2021
2020
Homebuilding revenues:
Sales of homes
$
6,505,708
5,467,364
17,377,353
14,533,212
Sales of land
45,055
34,323
131,483
81,023
Other homebuilding
7,746
3,433
20,770
12,485
Total homebuilding revenues
6,558,509
5,505,120
17,529,606
14,626,720
Homebuilding costs and expenses:
Costs of homes sold
4,732,403
4,204,814
12,820,638
11,359,364
Costs of land sold
39,378
32,395
113,545
102,899
Selling, general and administrative
453,716
435,949
1,319,116
1,222,032
Total homebuilding costs and expenses
5,225,497
4,673,158
14,253,299
12,684,295
Homebuilding net margins
1,333,012
831,962
3,276,307
1,942,425
Homebuilding equity in earnings (loss) from unconsolidated entities
2,391
(6,431)
(3,862)
(20,077)
Homebuilding other income (expense), net
(5,570)
(11,787)
3,043
(16,845)
Homebuilding operating earnings
$
1,329,833
813,744
3,275,488
1,905,503
Financial Services revenues
$
206,973
237,068
669,789
631,992
Financial Services costs and expenses
94,890
101,989
290,179
363,688
Financial Services gain on deconsolidation
—
—
—
61,418
Financial Services operating earnings
$
112,083
135,079
379,610
329,722
Multifamily revenues
$
167,921
115,170
476,837
370,904
Multifamily costs and expenses
174,410
118,786
474,389
379,607
Multifamily equity in earnings (loss) from unconsolidated entities and other gain
(2,904)
(1,532)
9,682
4,702
Multifamily operating earnings (loss)
$
(9,393)
(5,148)
12,130
(4,001)
Lennar Other revenues
$
8,000
12,896
20,884
33,348
Lennar Other costs and expenses
9,010
2,062
18,994
3,564
Lennar Other equity in earnings (loss) from unconsolidated entities and other income (expense), net
(2,220)
(2,835)
59,954
(38,907)
Lennar Other realized and unrealized gain (loss) (1)
495,202
—
847,377
—
Lennar Other operating earnings (loss)
$
491,972
7,999
909,221
(9,123)
(1)The following is a detail of Lennar Other realized and unrealized gain (loss):
Three Months Ended
Nine Months Ended
August 31,
August 31,
2021
2020
2021
2020
Hippo (HIPO) mark to market
$
324,855
—
324,855
—
SmartRent (SMRT) mark to market
100,793
—
100,793
—
Opendoor (OPEN) mark to market
37,301
—
272,756
—
Sunnova (NOVA) mark to market
23,870
—
(14,465)
—
Blend Labs (BLND) mark to market
6,852
—
6,852
—
Gain on sale of solar business
1,531
—
153,006
—
Other realized gain
—
—
3,580
—
$
495,202
—
847,377
—
9-9-9
LENNAR CORPORATION AND SUBSIDIARIES
Summary of Deliveries, New Orders and Backlog
(Dollars in thousands, except average sales price)
(unaudited)
Lennar's reportable homebuilding segments and all other homebuilding operations not required to be reported separately have divisions located in:
East: Florida, New Jersey, Pennsylvania and South Carolina
Central: Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, Tennessee and Virginia
Texas: Texas
West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington
Other: Urban divisions
For the Three Months Ended August 31,
2021
2020
2021
2020
2021
2020
Deliveries:
Homes
Dollar Value
Average Sales Price
East
4,568
4,309
$
1,660,357
1,488,022
$
363,000
345,000
Central
3,211
2,767
1,262,540
1,062,799
393,000
384,000
Texas
2,747
2,598
818,869
719,467
298,000
277,000
West
4,669
4,165
2,764,856
2,205,235
592,000
529,000
Other
4
3
4,141
2,590
1,035,000
863,000
Total
15,199
13,842
$
6,510,763
5,478,113
$
428,000
396,000
Of the total homes delivered listed above, 15 homes with a dollar value of $5.1 million and an average sales price of $337,000 represent home deliveries from unconsolidated entities for the three months ended August 31, 2021, compared to 33 home deliveries with a dollar value of $10.7 million and an average sales price of $326,000 for the three months ended August 31, 2020.
At August 31,
For the Three Months Ended August 31,
2021
2020
2021
2020
2021
2020
2021
2020
New Orders:
Active Communities
Homes
Dollar Value
Average Sales Price
East
329
340
5,308
4,655
$
2,100,466
1,631,349
$
396,000
350,000
Central
281
297
3,189
3,375
1,352,814
1,298,792
424,000
385,000
Texas
233
217
3,203
2,746
988,644
743,553
309,000
271,000
West
350
341
4,571
4,786
3,006,501
2,580,328
658,000
539,000
Other
3
3
6
2
5,974
1,452
996,000
726,000
Total
1,196
1,198
16,277
15,564
$
7,454,399
6,255,474
$
458,000
402,000
Of the total homes listed above, 35 homes with a dollar value of $13.1 million and an average sales price of $375,000 represent homes in four active communities from unconsolidated entities for the three months ended August 31, 2021, compared to 34 homes with a dollar value of $9.7 million and an average sales price of $286,000 in four active communities for the three months ended August 31, 2020.
For the Nine Months Ended August 31,
2021
2020
2021
2020
2021
2020
Deliveries:
Homes
Dollar Value
Average Sales Price
East
12,968
11,511
$
4,572,592
3,924,289
$
353,000
341,000
Central
8,391
7,389
3,282,168
2,833,745
391,000
384,000
Texas
7,843
6,637
2,245,671
1,877,374
286,000
283,000
West
12,793
11,273
7,284,927
5,894,183
569,000
523,000
Other
11
25
10,645
23,642
968,000
946,000
Total
42,006
36,835
$
17,396,003
14,553,233
$
414,000
395,000
Of the total homes delivered listed above, 58 homes with a dollar value of $18.7 million and an average sales price of $322,000 represent home deliveries from unconsolidated entities for the nine months ended August 31, 2021, compared to 60 home deliveries with a dollar value of $20.0 million and an average sales price of $334,000 for the nine months ended August 31, 2020.
10-10-10
For the Nine Months Ended August 31,
2021
2020
2021
2020
2021
2020
New Orders:
Homes
Dollar Value
Average Sales Price
East
15,473
12,512
$
5,788,506
4,266,221
$
374,000
341,000
Central
9,931
8,741
4,086,170
3,341,959
411,000
382,000
Texas
9,228
7,327
2,800,826
1,986,770
304,000
271,000
West
14,358
12,359
8,871,465
6,508,509
618,000
527,000
Other
14
16
14,095
15,189
1,007,000
949,000
Total
49,004
40,955
$
21,561,062
16,118,648
$
440,000
394,000
Of the total homes listed above, 102 homes with a dollar value of $36.7 million and an average sales price of $359,000 represent homes from unconsolidated entities for the nine months ended August 31, 2021, compared to 85 homes with a dollar value of $26.8 million and an average sales price of $316,000 for the nine months ended August 31, 2020.
At August 31,
2021
2020
2021
2020
2021
2020
Backlog:
Homes
Dollar Value
Average Sales Price
East
8,518
6,691
$
3,526,849
2,368,300
$
414,000
354,000
Central
5,911
4,502
2,566,174
1,752,180
434,000
389,000
Texas
4,208
2,860
1,379,740
822,734
328,000
288,000
West
7,177
5,644
4,499,969
2,922,743
627,000
518,000
Other
5
—
5,298
—
1,060,000
—
Total
25,819
19,697
$
11,978,030
7,865,957
$
464,000
399,000
Of the total homes in backlog listed above, 82 homes with a backlog dollar value of $29.5 million and an average sales price of $359,000 represent the backlog from unconsolidated entities at August 31, 2021, compared to 56 homes with a backlog dollar value of $17.0 million and an average sales price of $303,000 at August 31, 2020.
11-11-11
LENNAR CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
(unaudited)
August 31,
November 30,
2021
2020
ASSETS
Homebuilding:
Cash and cash equivalents
$
2,623,320
2,703,986
Restricted cash
21,519
15,211
Receivables, net
369,492
298,671
Inventories:
Finished homes and construction in progress
10,891,592
8,593,399
Land and land under development
7,210,032
7,495,262
Consolidated inventory not owned
1,004,319
836,567
Total inventories
19,105,943
16,925,228
Investments in unconsolidated entities
983,429
953,177
Goodwill
3,442,359
3,442,359
Other assets
1,034,691
1,190,793
27,580,753
25,529,425
Financial Services
2,282,873
2,708,118
Multifamily
1,226,692
1,175,908
Lennar Other
1,653,872
521,726
Total assets
$
32,744,190
29,935,177
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable
$
1,230,577
1,037,338
Liabilities related to consolidated inventory not owned
841,539
706,691
Senior notes and other debts payable, net
5,542,513
5,955,758
Other liabilities
2,716,872
2,225,864
10,331,501
9,925,651
Financial Services
1,272,218
1,644,248
Multifamily
259,145
252,911
Lennar Other
101,787
12,966
Total liabilities
11,964,651
11,835,776
Stockholders’ equity:
Preferred stock
—
—
Class A common stock of $0.10 par value
30,050
29,894
Class B common stock of $0.10 par value
3,944
3,944
Additional paid-in capital
8,778,609
8,676,056
Retained earnings
13,570,626
10,564,994
Treasury stock
(1,731,741)
(1,279,227)
Accumulated other comprehensive loss
(1,300)
(805)
Total stockholders’ equity
20,650,188
17,994,856
Noncontrolling interests
129,351
104,545
Total equity
20,779,539
18,099,401
Total liabilities and equity
$
32,744,190
29,935,177
12-12-12
LENNAR CORPORATION AND SUBSIDIARIES
Supplemental Data
(Dollars in thousands)
(unaudited)
August 31,
November 30,
August 31,
2021
2020
2020
Homebuilding debt
$
5,542,513
5,955,758
7,180,274
Stockholders' equity
20,650,188
17,994,856
17,172,103
Total capital
$
26,192,701
23,950,614
24,352,377
Homebuilding debt to total capital
21.2
%
24.9
%
29.5
%
Homebuilding debt
$
5,542,513
5,955,758
7,180,274
Less: Homebuilding cash and cash equivalents
2,623,320
2,703,986
1,966,796
Net homebuilding debt
$
2,919,193
3,251,772
5,213,478
Net homebuilding debt to total capital (1)
12.4
%
15.3
%
23.3
%
(1)Net homebuilding debt to total capital is a non-GAAP financial measure defined as net homebuilding debt (homebuilding debt less homebuilding cash and cash equivalents) divided by total capital (net homebuilding debt plus stockholders' equity). The Company believes the ratio of net homebuilding debt to total capital is a relevant and a useful financial measure to investors in understanding the leverage employed in homebuilding operations. However, because net homebuilding debt to total capital is not calculated in accordance with GAAP, this financial measure should not be considered in isolation or as an alternative to financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement the Company's GAAP results.
