Skip to content
AnalystLens

Lennar Annual Report, Year Ended Nov 30, 2004

Filing Date
Filed February 14, 2005
Period End
November 30, 2004
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 14, 2005. Cited figures are marked; the original filing is the authoritative source.

Lennar Corporation (NYSE: LEN), one of the nation's largest homebuilders and a provider of financial services, reported record revenues, profits and earnings per share for the fiscal year ended November 30, 2004.

Total revenues were $10.50 billiona, up from $8.91 billion in 2003, and net earnings were $945.6 million, or $5.70 per share diluted, compared with $751.4 million, or $4.65 per share diluted, in 2003. Homebuilding revenues from home sales rose 19% to $9.6 billion, driven by a 12% increase in home deliveries (36,204 total, including unconsolidated entities) and a higher average sales price of $272,000. Gross margin on home sales improved to 23.9% from 23.1%.

Financial services operating earnings fell to $112.3 millionb from $154.5 million, reflecting a more competitive mortgage environment and slower refinancing activity. Backlog grew to 15,546 homes worth $5.06 billion at November 30, 2004, compared with 13,905 homes worth $3.89 billion a year earlier. Homesite ownership rose to 87,740 owned and 168,327 controlled.

Cash and related balances were $1.4 billionc. Homebuilding debt rose to $2.02 billion from $1.55 billion, and homebuilding debt to total capital was 33.3%, versus 32.2% a year earlier. Operating cash flow was $272.7 million, down from $580.8 million, as inventories increased $870.2 million.

Investing activities included $751.2 milliond of contributions to unconsolidated entities, including roughly $200 million for the January 2004 purchase of The Newhall Land and Farming Company through a 50%-owned joint venture with LNR Property Corporation. Stuart Miller, the President and CEO, holds voting control of approximately 47% of the combined Class A and Class B common stock, which gives him significant influence over matters put to stockholders. The company also disclosed a $397.6 million 364-day revolving credit facility and $950 million of warehouse lines of credit maturing in 2005, and it raised the annual dividend rate to $0.55 per share in September 2004.

02—Key points

Key Highlights

  1. Record fiscal 2004 results: net earnings of $945.6 million, or $5.70 per diluted share, versus $751.4 million, or $4.65, in 2003.
  2. Total revenues rose to $10.50 billion from $8.91 billion; homebuilding home sales revenue grew 19% to $9.6 billion.
  3. Home deliveries reached 36,204 units, with an average sales price of $272,000 versus $256,000 in 2003.
  4. Gross margin on home sales improved to 23.9% from 23.1%, aided by pricing power in land-constrained markets and product mix.
  5. Backlog increased to 15,546 homes valued at $5.06 billion at November 30, 2004, up from $3.89 billion a year earlier.
  6. Financial services operating earnings declined to $112.3 million from $154.5 million amid a more competitive mortgage environment and slower refinancing.
  7. Homebuilding debt rose to $2.02 billion, with debt to total capital at 33.3% versus 32.2%; the company noted $1.4 billion of cash at year-end.

03—Questions

Frequently Asked Questions

  1. How profitable was Lennar in fiscal 2004?

    Lennar reported net earnings of $945.6 million, or $5.70 per diluted share, up from $751.4 million, or $4.65 per diluted share, in fiscal 2003. The company described these as record revenues, profits and earnings per share.

  2. What drove the growth in homebuilding revenue?

    Home sales revenue rose 19% to $9.6 billion, primarily because home deliveries increased 12% and the average sales price of homes delivered rose 6% to $272,000. Deliveries were higher in each of the company's regions.

  3. Why did financial services earnings fall?

    Financial services operating earnings decreased to $112.3 million from $154.5 million, mainly due to a more competitive mortgage environment and a slowdown in refinance activity, which reduced profitability in mortgage and title operations. A $6.5 million gain from monetizing alarm monitoring contracts partly offset the decline.

  4. What risks did the filing highlight for investors?

    The filing noted that $397.6 million of a 364-day revolving credit facility and $950 million of warehouse lines of credit mature in 2005, and that renewal is not assured. It also cited Stuart Miller's approximately 47% voting power, which gives him significant influence over stockholder votes, and risk factors such as slow-growth initiatives, interest rates, and construction cost increases.

  5. How did the company's balance sheet and cash flow change?

    Operating cash flow fell to $272.7 million from $580.8 million because inventories increased $870.2 million to support a larger backlog. Homebuilding debt increased to $2.02 billion from $1.55 billion, and stockholders' equity rose to $4.05 billion from $3.26 billion.

04—Continue

← View all 10-K filings