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Lennar Annual Report, Year Ended Nov 30, 1999

Filing Date
Filed February 28, 2000
Period End
November 30, 1999
Securities
LENLEN-B
In the record · 2016–202610-K1210-Q338-K129

LEN filed 12 annual reports (10-K), 33 quarterly reports (10-Q) and 129 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Jan ’17Jan ’17
  2. Material agreement8-K · Apr ’19Apr ’19
  3. Leadership change8-K · Mar ’22Mar ’22
  4. Leadership change8-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 10-K filed February 28, 2000. Cited figures are marked; the original filing is the authoritative source.

Lennar Corporation's fiscal 1999 10-K (fiscal year ended November 30, 1999) reports record net earnings of $172.7 milliona, or $2.74 per diluted share, compared with $144.1 million, or $2.49 per diluted share, in 1998.

Total revenues rose to $3.12 billionb from $2.42 billion, with homebuilding revenues of $2.85 billion and financial services revenues of $269.3 million. Homes delivered reached 12,589 versus 10,777 in 1998, and the average sales price of a Lennar home was $212,000. Homebuilding debt to total capital improved to 37% at November 30, 1999, from 43% a year earlier, and the company reported $121.3 million of operating cash flow.

Backlog dollar value fell to $652.0 millionc from $840.0 million, reflecting an improved backlog conversion rate. Management expects new home orders in early fiscal 2000 to be below comparable 1999 levels. The most significant development disclosed is the February 2000 definitive agreement to acquire U.S. Home Corporation through a merger valued at approximately $476 million, with about one-half paid in cash and the remainder in Lennar common stock, subject to adjustment based on Lennar's share price.

U.S. Home's debt is expected to include approximately $525 milliond of publicly held debt, which holders may require be redeemed within 90 days of closing. The transaction requires stockholder and regulatory approvals and is expected to close by the end of May 2000.

Other items for investors include a September 1999 share repurchase authorization of up to ten million shares, under which 9.7 million shares had been repurchased for about $155.9 million as of February 8, 2000, plus a further five million shares authorized on that date. Lennar's relationship with LNR Property Corporation, spun off in 1997, restricts both companies from certain businesses until at least 2002, and Chairman Leonard Miller controls roughly 67% of voting power through his Class B holdings.

02—Key points

Key Highlights

  1. Record fiscal 1999 net earnings of $172.7 million, or $2.74 per diluted share, up from $144.1 million, or $2.49 per diluted share, in 1998
  2. Total revenues of $3.12 billion, including $2.85 billion from homebuilding and $269.3 million from financial services
  3. Homes delivered rose to 12,589 from 10,777, with the average sales price at $212,000
  4. Homebuilding debt to total capital improved to 37% at November 30, 1999, from 43% at November 30, 1998
  5. Agreement to acquire U.S. Home Corporation for approximately $476 million, about half in cash and half in common stock, expected to close by the end of May 2000
  6. Backlog dollar value declined to $652.0 million from $840.0 million, and management expects early fiscal 2000 new orders to be below 1999 levels
  7. Share repurchase program of up to ten million shares; 9.7 million shares repurchased for about $155.9 million as of February 8, 2000, with an additional five million shares authorized

03—Questions

Frequently Asked Questions

  1. How did Lennar perform financially in fiscal 1999?

    Lennar reported record net earnings of $172.7 million, or $2.74 per diluted share, versus $144.1 million, or $2.49 per diluted share, in 1998. Total revenues increased to $3.12 billion from $2.42 billion, and operating cash flow was $121.3 million.

  2. What is the status of the U.S. Home acquisition?

    In February 2000, Lennar entered into a definitive merger agreement with U.S. Home Corporation in which U.S. Home stockholders will receive about $476 million, roughly half in cash and half in Lennar common stock. The deal requires stockholder and regulatory approvals and is expected to close by the end of May 2000. U.S. Home's publicly held debt of approximately $525 million may be redeemed by holders within 90 days after closing.

  3. What does the filing say about demand and order trends going into 2000?

    Backlog dollar value decreased 22% to $652.0 million at November 30, 1999, from $840.0 million a year earlier, due mainly to an improved backlog conversion rate. Management expects new home orders in early fiscal 2000 to be below comparable 1999 levels, though it anticipates improvement as new communities open, assuming no significant changes in economic conditions.

  4. How is Lennar's balance sheet and capital structure positioned?

    Homebuilding debt to total capital fell to 37% at November 30, 1999, from 43% a year earlier. Mortgage notes and other debts payable were $523.7 million, and the company had $645 million of unsecured revolving credit facilities with no amounts outstanding at year end. The company also has $237.9 million of zero-coupon convertible debentures due 2018 and $282 million of 7 5/8% senior notes due 2009.

  5. Are there governance or structural considerations for shareholders?

    Leonard Miller, Chairman, owns or controls shares giving him approximately 67% voting control of the company through its two classes of common stock. Lennar's relationship with LNR Property Corporation, spun off in 1997, restricts both companies from engaging in certain businesses until at least 2002, and significant transactions between Lennar and LNR require approval by an Independent Directors Committee.

04—Continue

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