Skip to content
AnalystLens

Lennar Annual Report (Amendment), Year Ended Nov 30, 2005

Filing Date
Filed August 8, 2006
Period End
November 30, 2005
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/A filed August 8, 2006. Cited figures are marked; the original filing is the authoritative source.

Lennar Corporation (LEN) filed this Form 10-K/A (Amendment No. 1) on August 8, 2006 for fiscal year ended November 30, 2005.

The amendment does not change the financial statements. It restates Note 4 to present three homebuilding reportable segments (Homebuilding East, Central and West) plus Financial Services, replacing the prior single national homebuilding segment. Consolidated balance sheets, earnings, cash flows and stockholders' equity are unaffected, and the filing states that conforming changes were made to Item 1, Item 7 and Item 9A.

Fiscal 2005 was a record year. Net earnings from continuing operations were $1.3 billiona, or $8.17 per diluted share, compared with $944.6 million, or $5.70 per diluted share, in 2004. Total revenues rose to $13.87 billion from $10.50 billion.

Homebuilding revenues reached $13.30 billionb, with gross margin on home sales of 26.0%, up from 23.9%. Home deliveries rose to 42,359 from 36,204, and the average sales price was $311,000 versus $272,000. Backlog reached $6.88 billion (18,565 homes) at November 30, 2005, versus $5.06 billion a year earlier.

The balance sheet at November 30, 2005 showed total assets of $12.54 billionc, homebuilding senior notes and other debts payable of $2.59 billion, and stockholders' equity of $5.25 billion. Cash was $1.06 billion. Management stated that Lennar's Item 1 discussion of risk includes a possible decline in home and land prices after a strong 2005, and that early signs of a slower sales pace in certain markets emerged as fiscal 2006 began.

02—Key points

Key Highlights

  1. Restated segment reporting: Note 4 now presents Homebuilding East ($3.50 billion revenues), Central ($3.37 billion) and West ($5.30 billion), plus Financial Services ($562.4 million revenues), with no change to consolidated financial statements.
  2. Net earnings from continuing operations of $1.3 billion, or $8.17 per diluted share, up from $5.70 in fiscal 2004.
  3. Total revenues of $13.87 billion, up from $10.50 billion, driven by higher home deliveries (42,359 versus 36,204) and an average sales price of $311,000 versus $272,000.
  4. Gross margin on home sales of 26.0%, up from 23.9%, with operating margin on home sales of 15.2% versus 13.0%.
  5. Record backlog of $6.88 billion (18,565 homes) at November 30, 2005, up from $5.06 billion a year earlier.
  6. Homebuilding debt to total capital of 33.1%, and a new $1.7 billion revolving credit facility maturing June 2010 with a $500 million accordion feature, later increased to $2.2 billion.
  7. Stuart A. Miller, President and CEO, held about 47% of the combined voting power of Class A and Class B common stock.

03—Questions

Frequently Asked Questions

  1. Why was this 10-K/A filed?

    To restate Note 4 of the financial statements so that homebuilding is reported as three reportable segments (East, Central and West) rather than one national segment, following the provisions of SFAS 131. The filing states that the restatement does not affect the consolidated balance sheets, earnings, cash flows or stockholders' equity.

  2. How profitable was Lennar in fiscal 2005?

    Net earnings from continuing operations were $1.3 billion, or $8.17 per diluted share, compared with $944.6 million, or $5.70 per diluted share, in fiscal 2004. Management described these as record revenues, profits and earnings per share from continuing operations.

  3. What does the backlog indicate about fiscal 2006?

    Backlog was $6.88 billion (18,565 homes) at November 30, 2005, up from $5.06 billion (15,546 homes) a year earlier. Management stated substantially all of the homes in backlog are expected to be delivered in fiscal 2006, while also noting early indications of a slower sales pace in certain markets.

  4. What risks does the filing highlight for investors?

    The filing cites the possibility that home and land prices, which rose significantly in 2005, could decline after a period without a down cycle; federal changes affecting Fannie Mae and Freddie Mac; mortgage interest rate changes; slow-growth initiatives; and the ability to renew debt, including $1.3 billion of warehouse lines of credit maturing in 2006 and 2007. It also notes Stuart A. Miller's significant voting influence.

04—Continue

← View all 10-K filings