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LEN · Lennar

50 filings

10-Q

LEN 10-Q Quarterly Reports

Lennar - 50 quarterly reports

Filing 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
  1. 2026-Q3

    Lennar Quarterly Report for Q3 Ended Aug 31, 2026

    Lennar Corporation's quarterly report for the period ended August 31, 2026 shows a weaker third quarter. Homebuilding revenues from home sales fell to $7.73 billion from $8.21 billion in the prior-year quarter, with 20,840 homes delivered versus 21,584 and an average sales price of $372,000 versus $383,000. Gross margin on home sales was 15.8%, down from 17.5%. Net earnings attributable to Lennar were $283.9 million, or $1.19 per diluted share, compared with $591.0 million, or $2.29, a year earlier. Excluding $53.3 million of mark-to-market losses on technology investments and a $39.2 million net one-time benefit in Financial Services, the company reported $294.3 million, or $1.23 per share. Management described a more difficult macro backdrop, with mortgage rates rising to approximately 7% and near-term rate relief seen as unlikely. Liquidity and leverage moved in opposite directions over the nine months. Cash and cash equivalents fell to $1.15 billion in Homebuilding from $3.44 billion at November 30, 2025, and net cash used in operating activities was $822 million. Homebuilding debt rose to $4.30 billion from $4.08 billion, driven by $650 million of borrowings under the revolving Credit Facility, and the filing reports Homebuilding debt to total capital of 16.6% versus 15.7% at fiscal year-end. The company repurchased $993 million of common stock and paid $366 million in dividends during the nine months. Remaining buyback authorization was $751 million at August 31, 2026, and a $0.50 quarterly dividend was declared on September 23, 2026. For the fourth quarter of 2026, management guided to 19,500 to 20,500 new orders, 22,000 to 23,000 deliveries, an average sales price of $370,000 to $380,000, a gross margin of 15.5% to 16.0%, and an SG&A percentage of 8.7% to 9.0%. The company states it owns approximately 2% of its homesites, with the remainder controlled through options and land banking arrangements.

    Oct 2, 2026
  2. 2026-Q2

    Lennar Quarterly Report for Q2 Ended May 31, 2026

    Lennar Corporation's 10-Q for the quarter ended May 31, 2026 shows a year-over-year decline in profitability. Net earnings attributable to Lennar were $304.8 million, or $1.24 per diluted share, for the second quarter of 2026, versus $477.4 million, or $1.81 per share, in the second quarter of 2025. For the six months, net earnings attributable to Lennar were $534.2 million ($2.17 per share) versus $997.0 million ($3.77 per share). Homebuilding revenues from home sales fell 2% in the quarter to $7.6 billion, as the average sales price of homes delivered decreased to $371,000 from $389,000 and gross margin on home sales narrowed to 15.6% from 17.8%. Management said margins remain under pressure but noted that sales incentives declined meaningfully on deliveries this quarter and expects sequential margin improvement to continue as the year progresses. Liquidity remained substantial. Cash and cash equivalents and restricted cash totaled $2.2 billion at May 31, 2026, down from $3.8 billion at November 30, 2025, and homebuilding cash was $1.8 billion, with total liquidity of $4.9 billion. Cash used in operating activities was $718 million for the six months, reflecting inventory growth and deposits on land. Homebuilding debt to total capital rose to 15.8% from 15.7% at November 30, 2025, and net homebuilding debt to total capital rose to 9.4% from 2.8%. The company repurchased $737 million of common stock and paid $247 million in dividends during the six months, and it declared a $0.50 quarterly dividend on June 25, 2026. For the third quarter of 2026, Lennar expects new orders of 21,000 to 22,000 homes, deliveries of 20,500 to 21,500 homes at an average sales price of $375,000 to $380,000, gross margin of approximately 16%, and an SG&A percentage of 8.8% to 9.0%. The full-year delivery guidance was adjusted to 82,000 to 83,000 homes, which the company attributed to current pressures on interest rates and continued macro uncertainty.

    Jun 29, 2026
  3. 2026-Q1

    Lennar Quarterly Report for Q1 Ended Feb 28, 2026

    Lennar Corporation's first quarter of fiscal 2026 (three months ended February 28, 2026) showed a sharp earnings decline. Net earnings attributable to Lennar were $229.4 million, or $0.93 per diluted share, compared with $519.5 million, or $1.96 per diluted share, in the first quarter of 2025. Total revenues were $6.62 billion versus $7.63 billion a year earlier, with home sales revenue of $6.27 billion versus $7.24 billion. Homebuilding gross margin on home sales was 15.2%, compared with 18.7% in the prior-year quarter, and the company cited lower revenue per square foot and higher land costs. Deliveries were 16,863 homes at an average sales price of $374,000, versus 17,834 homes at $408,000. Management stated that sales incentives reached 14% of revenue and that it believes the first-quarter gross margin of 15.2% represents the low point for the fiscal year. Liquidity remained substantial, with homebuilding cash and cash equivalents of $2.09 billion and total liquidity of $5.2 billion at quarter end. Cash used in operating activities was $434 million, driven by a $652 million increase in inventories and a $354 million increase in deposits and pre-acquisition costs on real estate. Homebuilding debt was $4.07 billion, and homebuilding debt to total capital rose to 15.7% from 8.9% a year earlier, and net homebuilding debt to total capital was 8.3%, compared with a negative figure a year earlier. The company repurchased $270 million of stock and paid $123 million in dividends, and it declared a quarterly dividend of $0.50 per share on April 8, 2026. For the second quarter of 2026, management guided to new orders of 21,000 to 22,000 homes, deliveries of 20,000 to 21,000 homes, an average sales price of $370,000 to $375,000, gross margins of 15.5% to 16%, and an SG&A percentage of 8.9% to 9.1%. Management also stated that margins will remain under pressure in the second quarter.

    Apr 9, 2026
  4. 2025-Q3

    Lennar Quarterly Report for Q3 Ended Aug 31, 2025

    Lennar Corporation's Form 10-Q for the quarter ended August 31, 2025 reports third-quarter net earnings attributable to Lennar of $590.97 million, or $2.29 per diluted share, down from $1.16 billion, or $4.26 per share, in the prior-year quarter. Homebuilding revenues fell to $8.25 billion from $9.05 billion, with home sales revenue of $8.21 billion. Gross margin on home sales was 17.5% versus 22.5% a year earlier, as management sold more homes than expected but needed additional incentives to do so. Management guides to fourth-quarter 2025 deliveries of 22,000 to 23,000 homes, an average sales price of $380,000 to $390,000, and a margin of approximately 17.5%. The balance sheet changed significantly after the February 7, 2025 spin-off of Millrose Properties, Inc., in which Lennar distributed about 80% of Millrose's stock and contributed $5.6 billion in land assets and $1.0 billion in cash. The company retains roughly 20% of Millrose, carried at $1.2 billion, which it expects to dispose of through a split-off, stock sale or another transaction. Cash and cash equivalents and restricted cash were $1.8 billion across all operations, down from $5.0 billion at November 30, 2024. Homebuilding debt rose to $3.52 billion, and Homebuilding debt to total capital increased to 13.5% from 7.5%. Nine-month operating cash flow was negative at $(1.54) billion. Lennar continued repurchasing stock, with $1.81 billion of repurchases in the nine months, and paid $0.50 per share quarterly dividends. At August 31, 2025 it had $1.7 billion of remaining repurchase authorization. Note that third-quarter 2025 earnings included $99.2 million of mark-to-market gains on technology investments, and that the company acquired Rausch Coleman Homes in February 2025.

    Oct 3, 2025
  5. 2025-Q2

    Lennar Quarterly Report for Q2 Ended May 31, 2025

    Lennar Corporation's Form 10-Q for the quarter ended May 31, 2025 shows a sharp year-over-year decline in profitability. Net earnings attributable to Lennar were $477.4 million, or $1.81 per diluted share, for the second quarter of 2025, versus $954.3 million, or $3.45 per share, a year earlier. Homebuilding revenues were $7.84 billion for the quarter, and gross margin on home sales was 17.8%, compared with 22.6% in the prior-year quarter. Management attributes the margin decline to higher land costs and lower revenue per square foot, partly offset by lower construction costs, and says it chose to maintain volume over margin. For the third quarter of 2025, the company expects to deliver 22,000 to 23,000 homes at an average sales price of $380,000 to $385,000 and a margin of approximately 18%, and it expects full-year 2025 deliveries at the low end of its 86,000 to 88,000 range. The balance sheet changed materially during the period. The February 2025 spin-off of Millrose Properties, Inc. reduced total stockholders' equity from $27.87 billion at November 30, 2024 to $22.58 billion at May 31, 2025, and retained earnings fell by $4.84 billion. Homebuilding cash fell to $1.17 billion from $4.66 billion, while Homebuilding debt rose to $2.79 billion from $2.26 billion after the issuance of $700 million of 5.20% senior notes due 2030, $400 million of net borrowings under the revolving credit facility, and the redemption of $500 million of 4.75% notes due 2025. Homebuilding debt to total capital rose to 11.0% from 7.5%. Operating cash flow was negative $1.38 billion for the six months, driven by a $1.62 billion increase in inventories and a $782 million increase in deposits and pre-acquisition costs. The company repurchased $1.30 billion of common stock and paid $265 million in dividends during the six months. Other notable items include the Rausch Coleman Homes acquisition on February 10, 2025 ($312.6 million of assets acquired), the company's retained 20% stake in Millrose (carried at $1.2 billion), and Lennar Other losses of $91.9 million from technology investments for the six months. The company declared a quarterly dividend of $0.50 per share on June 19, 2025 and had $2.2 billion remaining under its stock repurchase authorization at May 31, 2025.

    Jul 1, 2025
  6. 2025-Q1

    Lennar Quarterly Report for Q1 Ended Feb 28, 2025

    Lennar Corporation's first-quarter 2025 Form 10-Q (quarter ended February 28, 2025, filed April 4, 2025) reports net earnings attributable to Lennar of $519.5 million, or $1.96 per share, compared with $719.3 million, or $2.57 per share, in the prior-year quarter. Revenues were $7.63 billion versus $7.31 billion. Homebuilding sales of homes reached $7.24 billion, with 17,834 homes delivered at an average sales price of $408,000, and the gross margin on home sales was 18.7% versus 21.8% a year earlier. Results were affected by $62.5 million of realized and unrealized losses on technology investments, and the company described a challenging housing market with affordability and credit constraints and rising incentives. The quarter was dominated by structural changes. On February 7, 2025, Lennar completed the taxable spin-off of Millrose Properties, Inc., distributing about 80% of its stock and contributing $5.6 billion of land assets (about 87,000 homesites) and $1.0 billion of cash. Lennar retains about 20% of Millrose, carried at $1.2 billion, and expects to dispose of it later in the year. On February 10, 2025, it acquired Rausch Coleman Homes for cash funded from working capital. Total assets fell to $34.99 billion from $41.31 billion at November 30, 2024, and total equity fell to $22.87 billion from $28.02 billion, largely reflecting the spin-off. Liquidity is solid: homebuilding cash and cash equivalents were $2.28 billion, with no borrowings under the $3.0 billion revolving credit facility. Operating cash flow was negative at $(289) million, driven by $758 million of increased deposits and pre-acquisition costs tied to option contracts, including with Millrose. The company repurchased $775 million of stock and paid $132 million in dividends. For the second quarter of 2025, management expects to sell 22,500 to 23,500 homes, deliver 19,500 to 20,500 homes, and achieve a margin of approximately 18%.

    Apr 4, 2025
  7. 2024-Q3

    Lennar Quarterly Report for Q3 Ended Aug 31, 2024

    Lennar Corporation's Form 10-Q for the quarter ended August 31, 2024 (filed October 2, 2024) shows third-quarter net earnings attributable to Lennar of $1.16 billion, or $4.26 per diluted share, compared with $1.11 billion, or $3.87 per share, a year earlier. Revenues rose to $9.42 billion from $8.73 billion. Homebuilding revenue of $9.05 billion reflected 21,516 home deliveries at an average sales price of $422,000, versus 18,559 deliveries at $448,000 in the prior-year quarter. Gross margin on home sales was 22.5%, down from 24.4%, as management pushed volume through higher absorption and increased incentives. For the nine months, net earnings attributable to Lennar were $2.84 billion, or $10.26 per share. Balance sheet and capital allocation were central themes. Homebuilding cash and cash equivalents fell to $4.04 billion from $6.27 billion at November 30, 2023, as the company repurchased $1.73 billion of common stock, paid $414 million in dividends, and invested $985 million (increase) in deposits and pre-acquisition costs on real estate. Homebuilding senior notes and other debt declined to $2.26 billion from $2.82 billion after the early redemption of $454 million of 4.50% notes due 2024. Total stockholders' equity rose to $27.41 billion. Net cash provided by operating activities was $1.43 billion for the nine months, compared with $2.59 billion a year earlier. The filing states that remaining repurchase authorization was $3.9 billion. Management describes an ongoing shift to a land-light model and a planned spin-off of Millrose Properties Inc., expected to hold land and cash with an expected book value of $6.0 billion to $8.0 billion. The company expects 22,500 to 23,000 closings in the fourth quarter and approximately 80,500 to 81,000 homes for fiscal 2024. A one-time $179.0 million net gain on the sale of LMV Fund I rental projects was offset by a one-time $90.0 million write-down of non-core Multifamily assets.

    Oct 2, 2024
  8. 2024-Q2

    Lennar Quarterly Report for Q2 Ended May 31, 2024

    Lennar Corporation's Form 10-Q for the quarter ended May 31, 2024 (filed June 28, 2024) reports second-quarter 2024 net earnings attributable to Lennar of $954.3 million, or $3.45 per diluted share, versus $871.7 million, or $3.01 per share, a year earlier. Total revenues were $8.77 billion for the quarter, up from $8.05 billion, driven by Homebuilding revenues of $8.38 billion. Homebuilding deliveries rose to 19,690 homes from 17,074, while the average sales price of homes delivered fell to $426,000 from $449,000, which the filing attributes primarily to pricing to market through increased use of incentives and product mix. Gross margin on home sales was 22.6% for the quarter, compared with 22.5% a year earlier. Second-quarter net earnings include $21.5 million of mark-to-market losses on technology investments and a $46.5 million one-time gain on the sale of a technology investment. The balance sheet remained strong. Homebuilding cash and cash equivalents were $3.60 billion at May 31, 2024, and Homebuilding debt to total capital was 7.7%, down from 9.6% at November 30, 2023. Senior notes and other Homebuilding debt fell to $2.24 billion from $2.82 billion after the April 2024 redemption of $454 million of 4.50% senior notes and $100 million of repurchases of 4.75% notes due 2027. The company had no borrowings under its $2.2 billion revolving Credit Facility. Stockholders' equity rose to $26.88 billion. During the six months, the company repurchased $1.2 billion of common stock and paid $278 million in dividends. Operating cash flow was $610 million for the six months, compared with $1.6 billion a year earlier, mainly because of higher inventory and deposit and pre-acquisition spending. Management outlined a plan to move toward an asset-light model. It is proposing to contribute $6 billion to $8 billion of land to a new entity to be spun off to stockholders, a transaction the filing describes as early-stage with no specific timeline or guarantee of completion. For the third quarter, management expects 20,500 to 21,000 home sales at an approximately 23% gross margin, and for the full year about 80,000 home deliveries with a little over 23% gross margin and more than $2 billion of stock repurchases.

    Jun 28, 2024
  9. 2024-Q1

    Lennar Quarterly Report for Q1 Ended Feb 29, 2024

    Lennar Corporation's Form 10-Q for the quarter ended February 29, 2024 reports net earnings attributable to Lennar of $719.3 million, or $2.57 per diluted share, compared with $596.5 million, or $2.06 per diluted share, in the first quarter of 2023. Total revenues were $7.31 billion versus $6.49 billion a year earlier. Homebuilding revenues from home sales rose to $6.9 billion, driven by a 23% increase in home deliveries to 16,798 homes, partly offset by an 8% decrease in the average sales price to $413,000. Gross margin on home sales was 21.8%, up from 21.2%, though selling, general and administrative expenses rose to 8.2% of home sales revenue from 7.4%. The balance sheet remained strong, with homebuilding cash and cash equivalents of $4.95 billion, homebuilding debt of $2.83 billion, and no outstanding borrowings under the $2.6 billion revolving Credit Facility. Homebuilding debt to total capital was 9.6%, and net homebuilding debt to total capital was (8.6)%. Operating cash flow was $367.9 million, down from $978 million, reflecting higher deposits and pre-acquisition costs on real estate and higher inventory investment. During the quarter the company repurchased $595.1 million of stock and paid $139.4 million in dividends. In January 2024 the board raised the dividend to $0.50 per share quarterly and added $5 billion to the repurchase authorization. Management stated it is considering a taxable spinoff of excess land to create a permanent land capital vehicle, and that the company expects 80,000 home deliveries in fiscal 2024 with a margin of a little over 23%. Management also flagged concerns about the durability of private equity land banking arrangements that its land-light strategy relies on.

    Mar 29, 2024
  10. 2023-Q3

    Lennar Quarterly Report for Q3 Ended Aug 31, 2023

    Lennar Corporation's Form 10-Q for the quarter ended August 31, 2023 reports third-quarter net earnings attributable to Lennar of $1.11 billion, or $3.87 per diluted share, compared with $1.47 billion, or $5.03 per diluted share, in the prior-year quarter. Homebuilding revenues were $8.32 billion for the quarter, with 18,559 homes delivered at an average sales price of $448,000, versus $491,000 a year earlier. Gross margin on home sales was 24.4%, compared with 29.2% in the third quarter of 2022. Results included $15.7 million of unrealized mark-to-market losses on publicly traded technology investments. For the nine months, net earnings attributable to Lennar were $2.58 billion, or $8.94 per diluted share. Balance sheet and liquidity remained strong. Homebuilding cash and cash equivalents were $3.89 billion at August 31, 2023, and there were no outstanding borrowings under the $2.6 billion revolving Credit Facility. Homebuilding debt to total capital fell to 11.5% from 14.4% at November 30, 2022, and net homebuilding debt to total capital was (2.3)%. During the nine months, the company repurchased $841.6 million of common stock and paid $325.4 million in dividends, and it declared a quarterly dividend of $0.375 per share on September 27, 2023. Management guided to fourth-quarter 2023 deliveries of 21,500 to 22,500 homes with a gross margin of 24.4% to 24.6%, and full-year 2023 deliveries of 70,800 to 71,800 homes. Management also said it expects continued cost pressure and increased use of brokers to support sales, and noted that a planned spin-off of its Multifamily and single family rental asset management businesses into Quarterra Group, Inc. has been deferred due to market conditions.

    Sep 29, 2023
  11. 2023-Q2

    Lennar Quarterly Report for Q2 Ended May 31, 2023

    Lennar Corporation's Form 10-Q for the quarter ended May 31, 2023 reports second-quarter 2023 net earnings attributable to Lennar of $871.7 million, or $3.01 per diluted share, versus $1.32 billion, or $4.49 per diluted share, in the second quarter of 2022. Total revenues were $8.05 billion, down from $8.36 billion. Homebuilding revenues were $7.67 billion, with sales of homes of $7.64 billion. Gross margin on home sales was 22.5%, compared with 29.5% a year earlier, as the company priced homes to market and costs per square foot rose on higher materials and labor costs. Selling, general and administrative expenses were $510.7 million, or 6.7% of home sale revenues, compared with 6.1% a year earlier. Net earnings excluding mark-to-market gains and losses on technology investments were $852 million, or $2.94 per diluted share, in the second quarter of 2023. For the six months, net earnings attributable to Lennar were $1.47 billion, or $5.07 per diluted share, compared with $1.82 billion, or $6.16 per diluted share. Net cash provided by operating activities was $1.64 billion, compared with $52.6 million in the prior-year period. Cash and cash equivalents and restricted cash totaled $4.3 billion at May 31, 2023. Homebuilding debt to total capital was 13.3%, and net homebuilding debt to total capital was negative 0.6%, reflecting a net cash position. The company had no outstanding borrowings under its Credit Facility, with about $6.6 billion of available capacity cited in the filing. During the six months, Lennar repurchased $465.3 million of common stock and paid $218.3 million in dividends, and it repurchased $157.8 million of senior notes. Management's outlook for the third quarter of 2023 calls for new orders of 18,000 to 19,000 homes, deliveries of 17,750 to 18,250 homes, and a gross margin of 23.5% to 24.0%. For full-year 2023, the company targets deliveries of 68,000 to 70,000 homes. The filing also notes that the company deferred a planned spin-off of its Multifamily and single family home for rent asset management businesses into a subsidiary named Quarterra Group, Inc., citing market conditions.

    Jun 30, 2023
  12. 2023-Q1

    Lennar Quarterly Report for Q1 Ended Feb 28, 2023

    Lennar Corporation's first-quarter fiscal 2023 Form 10-Q (quarter ended February 28, 2023, filed April 4, 2023) reports net earnings attributable to Lennar of $596.5 million, or $2.06 per diluted share, compared to $503.6 million, or $1.69 per diluted share, in the first quarter of 2022. Excluding mark-to-market losses on technology investments in both years, net earnings attributable to Lennar were $614.8 million, or $2.12 per diluted share, in 2023, versus $800.2 million, or $2.70 per diluted share, in 2022. Homebuilding revenues rose to $6.16 billion from $5.75 billion, driven by a higher number of home deliveries (13,659 versus 12,538), while the average sales price of homes delivered declined to $448,000 from $457,000. Gross margin on home sales fell to 21.2% from 26.9%, reflecting higher materials and labor costs and higher land costs. Cash and cash equivalents and restricted cash totaled $4.3 billion at quarter end, with operating cash flow of $978 million, compared with negative $72 million a year earlier. Homebuilding debt to total capital was 14.2%, and net homebuilding debt to total capital was (0.1)%, reflecting a net cash position. The company repurchased $258 million of common stock and paid $108 million in dividends during the quarter. Homebuilding new orders were 14,194 homes, down from 15,747, and the cancellation rate rose to 22% from 10%. Management stated it is no longer providing the targeted annual guidance it previously gave and instead provided ranges for the second quarter of 2023 and full year 2023, including full-year 2023 deliveries of 62,000 to 66,000 homes and second-quarter gross margin of 21.0% to 21.5%. The company also said it intends, subject to market conditions, to spin off its Multifamily and single family home for rent asset management businesses into a subsidiary, Quarterra Group, Inc., but has deferred that transaction due to current market conditions.

    Apr 4, 2023
  13. 2022-Q3

    Lennar Quarterly Report for Q3 Ended Aug 31, 2022

    Lennar Corporation reported strong third-quarter results for the period ended August 31, 2022. Net earnings attributable to Lennar were $1.47 billion, or $5.03 per diluted share, compared with $1.41 billion, or $4.52 per diluted share, a year earlier. Results included $85.8 million of unrealized mark-to-market losses on publicly traded technology investments and a $35.5 million one-time litigation charge in Financial Services. Home sales revenue rose 30% to $8.4 billion, driven by a 13% increase in deliveries to 17,248 homes and a 15% increase in the average sales price to $491,000. Gross margin on home sales was 29.2%, up from 27.3%, and SG&A as a percentage of home sales revenue improved to 5.8% from 7.0%. Management said the housing market has weakened as mortgage rates have risen. It is adjusting prices in 22 markets and reports seven markets with more significant softening, while it has reduced its controlled-homesite share to 63% from 53% a year earlier through option contracts. Balance sheet and capital allocation were central to the quarter. Homebuilding debt to total capital fell to 15.0% from 18.3% at November 30, 2021, and net homebuilding debt to total capital was 10.7%. The company redeemed $575 million of 4.75% senior notes early and made no stock repurchases in the quarter, stating it preferred debt retirement under current market conditions. Nine-month operating cash flow was $551.5 million, down from $1.3 billion, as inventories increased by $3.9 billion. Homebuilding cash was $1.3 billion, and the $2.575 billion revolving credit facility had no outstanding borrowings. The board declared a quarterly dividend of $0.375 per share. Management guided to fourth-quarter 2022 new orders of 14,000 to 15,500 homes, deliveries of 20,000 to 21,000 homes, gross margins of 26.0% to 27.0%, and SG&A of 5.7% to 5.9% of home sales revenue. It also described plans to reduce inventory, be selective on land, and complete a planned spin-off of its asset management businesses (Lennar Multifamily and Lennar Single Family Rental) and certain non-core assets.

    Oct 4, 2022
  14. 2022-Q2

    Lennar Quarterly Report for Q2 Ended May 31, 2022

    Lennar Corporation's Form 10-Q for the quarter ended May 31, 2022 reports strong second-quarter results. Net earnings attributable to Lennar were $1.32 billion, or $4.49 per diluted share, compared with $831.4 million, or $2.65 per diluted share, in the second quarter of 2021. Homebuilding revenues rose to $7.98 billion from $6.03 billion, driven by 16,549 home deliveries (up from 14,493) and an average sales price of $483,000 (up from $414,000). Homebuilding gross margin on home sales was 29.5%, compared with 26.1% a year earlier. Results were reduced by $78 million of mark-to-market losses on publicly traded technology investments, which pushed Lennar Other to an operating loss of $108.4 million. The balance sheet remained solid. Homebuilding cash was $1.31 billion, homebuilding debt to total capital fell to 17.7% from 23.1% a year earlier, and the company had no outstanding borrowings under its $2.575 billion revolving Credit Facility. Inventories grew to $22.09 billion from $18.72 billion at November 30, 2021, and operating cash flow for the six months was only $53 million, versus $718 million a year earlier, because of inventory investment. The company repurchased $906 million of stock in the six months and paid $221 million in dividends. Management's outlook turned cautious. It said a rapid rise in interest rates had led many buyers to pause, that new orders and traffic weakened in June, and that the company had responded with mortgage buydowns, higher incentives, and price reductions. For the third quarter of 2022 it guided to 16,000 to 18,000 new orders, 17,000 to 18,500 deliveries, gross margins of 28.5% to 29.5%, and SG&A of 6.0% to 6.5% of home sale revenues. It also plans to complete the Quarterra Group spin-off, which would remove $2.5 billion of assets from its balance sheet, by year-end 2022.

    Jul 1, 2022
  15. 2022-Q1

    Lennar Quarterly Report for Q1 Ended Feb 28, 2022

    Lennar Corporation reported net earnings attributable to Lennar of $503.6 million, or $1.69 per diluted share, for the first quarter ended February 28, 2022, compared with $1.0 billion, or $3.20 per diluted share, a year earlier. The results include unrealized mark-to-market losses of $395.2 million on publicly traded technology investments, compared with gains of $469.7 million in the prior-year quarter. Excluding these items in both years, net earnings attributable to Lennar were $800.2 million, or $2.70 per diluted share, versus $642.7 million, or $2.04 per diluted share. Total revenues rose to $6.20 billion from $5.33 billion, driven by home sales revenues of $5.7 billion, up 17%. Home deliveries increased 2% to 12,538 homes, the average sales price rose 15% to $457,000, and gross margin on home sales was 26.9%, compared with 25.0% a year earlier. Cash flow and balance sheet activity show heavier investment in inventory. Operating cash flow was negative $72 million, reflecting a $1.9 billion increase in inventories from land purchases, development and construction costs. Homebuilding cash and cash equivalents were $1.4 billion at February 28, 2022, and the $2.5 billion unsecured revolving credit facility had no outstanding borrowings. Homebuilding debt was $4.64 billion, and net homebuilding debt to total capital was 13.7%, up from 8.4% at November 30, 2021. The company repurchased $581.3 million of common stock in the quarter and paid $110.1 million in dividends. In March 2022, the Board approved an additional repurchase authorization of up to the lesser of $2 billion or 30 million shares. Management's outlook calls the housing market strong, although supply chain and cost pressures have lengthened build times by about eight weeks over the past year. For the second quarter of 2022, the company expects deliveries of 16,000 to 16,300 homes, gross margin on home sales of 28.0% to 28.25%, and SG&A of 6.8% to 7.0% of revenues from home sales. The filing also describes a proposed spin-off company, SpinCo, which management says would be an asset-light asset management business aimed at moving the company toward a pure-play homebuilding model.

    Apr 1, 2022
  16. 2021-Q3

    Lennar Quarterly Report for Q3 Ended Aug 31, 2021

    Lennar Corporation's Form 10-Q for the quarter ended August 31, 2021 reports a strong third quarter. Net earnings attributable to Lennar were $1.41 billion, or $4.52 per diluted share, compared with $666.4 million, or $2.12 per diluted share, in the third quarter of 2020. For the nine months, net earnings attributable to Lennar were $3.24 billion, or $10.36 per diluted share, versus $1.58 billion, or $5.03 per diluted share, a year earlier. Total revenues for the quarter were $6.94 billion, and Homebuilding revenues were $6.56 billion, including $6.51 billion from home sales. Results were boosted by $847.4 million of Lennar Other realized and unrealized gains for the nine months, largely from mark-to-market gains on public strategic technology investments such as Hippo, SmartRent, Opendoor and Blend, and from the sale of its solar business to Sunnova. Homebuilding operations remained strong, with 15,199 homes delivered in the quarter at an average sales price of $428,000, and a gross margin on home sales of 27.3%. Homebuilding debt to total capital improved to 21.2% from 29.5% a year earlier, and total homebuilding debt declined to $5.54 billion from $7.18 billion. Cash used in operating activities reflected a $2.25 billion increase in inventories for the nine months, and operating cash flow was $1.31 billion compared with $2.90 billion in the prior-year period. Management said the company expects fourth-quarter deliveries of approximately 18,000 homes, a gross margin of about 28%, and a lower year-end community count growth of approximately 7% versus the 10% previously guided, citing supply chain stress. The company also declared a quarterly cash dividend of $0.25 per share and repurchased 4.0 million Class A shares for $387.9 million in the nine months under its $1 billion repurchase program. Management is considering including its LENX technology investments and portions of its land and multifamily businesses in a planned spin-off.

    Oct 1, 2021
  17. 2021-Q2

    Lennar Quarterly Report for Q2 Ended May 31, 2021

    Lennar Corporation reported net earnings attributable to Lennar of $831.4 million, or $2.65 per diluted share, for the three months ended May 31, 2021, compared with $517.4 million, or $1.65 per diluted share, a year earlier. For the six months ended May 31, 2021, net earnings attributable to Lennar were $1.83 billion, or $5.85 per diluted share, versus $915.9 million, or $2.91 per diluted share, in the prior-year period. Total revenues for the quarter were $6.43 billion, and Homebuilding revenues from home sales were $5.98 billion. Homebuilding gross margin on home sales was 26.1% in the quarter, compared with 21.6% a year earlier, which the company attributed primarily to pricing power. The quarter included a $151.5 million gain on the sale of the residential solar business to Sunnova Energy International Inc. in exchange for Sunnova shares, offset by mark-to-market losses of $234.3 million on Opendoor and $38.3 million on Sunnova. Homebuilding debt to total capital improved to 23.1% from 31.2% a year earlier, and cash and cash equivalents and restricted cash totaled $2.8 billion at May 31, 2021. The company repurchased 1.0 million Class A shares in May 2021 and declared a quarterly dividend of $0.25 per share payable July 19, 2021. Management stated it still expects to deliver 62,000 to 64,000 homes in 2021, with an expected gross margin of 26.5% to 27.0% and SG&A of 7.3% to 7.5% for the year. The filing also describes plans for a spin-off with a targeted asset base of $5 billion to $6 billion, and the formation of the Upward America Venture, which has a total equity commitment of $1.25 billion.

    Jul 2, 2021
  18. 2021-Q1

    Lennar Quarterly Report for Q1 Ended Feb 28, 2021

    Lennar Corporation's Form 10-Q for the quarter ended February 28, 2021 reports first-quarter net earnings attributable to Lennar of $1.00 billion, or $3.20 per diluted share, compared with $398.5 million, or $1.27 per diluted share, in the first quarter of 2020. Results were driven by Homebuilding revenues of $4.94 billion, up from $4.17 billion, and a gross margin on home sales of 25.0%, compared with 20.5% a year earlier. Net earnings also include a $469.7 million unrealized gain from the company's Opendoor investment, which began trading publicly in December 2020, recorded in the Lennar Other segment. Home deliveries rose to 12,302 from 10,313 on a basis excluding unconsolidated entities, and the average sales price of homes delivered was $398,000 versus $402,000. Balance sheet and capital metrics improved. Homebuilding debt to total capital was 24.0%, down from 33.6% a year earlier, and cash and cash equivalents plus restricted cash totaled $2.6 billion at February 28, 2021. Stockholders' equity rose to $18.90 billion. The company paid a $0.25 per share cash dividend in February 2021 and repurchased $69.5 million of common stock in the quarter, and its board authorized a repurchase program of up to the lesser of $1.0 billion or 25 million shares. Management also says it is working on a tax-free spin-off of all or parts of its non-core businesses, and expects a significant gain on the pending sale of its Sunstreet solar platform to Sunnova Energy International Inc. in the second quarter of 2021. The filing states that management expects 62,000 to 64,000 home deliveries in 2021, with gross margin guidance of about 25.0% for the year, and that the company is on track to increase active communities by about 10% in fiscal 2021. Management also notes that it expects further increases in lumber costs throughout the year.

    Apr 1, 2021
  19. 2020-Q3

    Lennar Quarterly Report for Q3 Ended Aug 31, 2020

    Lennar Corporation's Form 10-Q for the quarter ended August 31, 2020 reports a strong third quarter. Net earnings attributable to Lennar were $666.4 million, or $2.12 per diluted share, versus $513.4 million, or $1.59 per diluted share, in the third quarter of 2019. For the nine months, net earnings attributable to Lennar were $1.6 billion, or $5.03 per diluted share, compared with $1.2 billion, or $3.63 per diluted share, a year earlier. Total revenues were $5.87 billion for the quarter and $15.66 billion for the nine months. Homebuilding gross margin on home sales was 23.1% in the third quarter, up from 20.4%, and management attributed the improvement mainly to reduced construction costs. Management described the housing market as robust, with limited inventory and strong demand, and said closings were constrained by the production pause in March through May due to COVID-19. The balance sheet strengthened. Homebuilding debt fell to $7.18 billion from $7.78 billion at November 30, 2019, and the homebuilding debt-to-total capital ratio improved to 29.5% from 32.8%. Cash and cash equivalents and restricted cash rose to $2.2 billion. Operating cash flow for the nine months was $2.9 billion, compared with $298.3 million a year earlier. Management said it expects to continue paying down debt, resume some form of stock repurchase program, and monetize non-core assets, including the Multifamily platform. The company also raised its annual dividend to $1.00 per share from $0.50, effective with a quarterly payment of $0.25 per share announced October 1, 2020. Risks noted in the filing include the uncertain duration and impact of COVID-19, rising costs for lumber and other materials, and a $25.0 million write-down of assets held by Rialto legacy funds within the Lennar Other segment. Total equity was $17.28 billion at August 31, 2020.

    Oct 1, 2020
  20. 2020-Q2

    Lennar Quarterly Report for Q2 Ended May 31, 2020

    Lennar Corporation reported net earnings attributable to Lennar of $517.4 million, or $1.65 per diluted share, for the three months ended May 31, 2020, compared to $421.5 million, or $1.30 per diluted share, a year earlier. For the six months ended May 31, 2020, net earnings attributable to Lennar were $915.9 million, or $2.91 per diluted share, versus $661.4 million, or $2.03 per diluted share, in the prior-year period. Homebuilding revenues were $4.95 billion in the quarter, with home sales revenue of $4.93 billion. Management said average sales price fell 4% in the quarter to $389,000, while the gross margin on home sales rose to 21.6% from 20.1%. The quarter also included a $23.5 million loss on land sales tied to a write-off of costs for a naval base development in Concord, California, and a $25.0 million write-down of assets held by Rialto legacy funds. The balance sheet strengthened over the period. Homebuilding debt fell to $7.50 billion at May 31, 2020 from $7.78 billion at November 30, 2019, after the company redeemed $300 million of 6.625% senior notes due May 2020. Homebuilding debt to total capital improved to 31.2% from 32.8% at November 30, 2019. Stockholders' equity rose to $16.54 billion, and the company repurchased $296.1 million of common stock in the six months. Cash from operating activities was $1.31 billion for the six months, compared with a use of $429.9 million a year earlier. The filing describes the COVID-19 pandemic as a major factor in the period. Management said homebuilding stalled from mid-March through April, then demand strengthened in May and early June. Lennar expects to deliver between 50,500 and 51,000 homes in fiscal 2020, fewer than planned because of construction slowdowns, and it declared a quarterly dividend of $0.125 per share on June 25, 2020.

    Jul 6, 2020
  21. 2020-Q1

    Lennar Quarterly Report for Q1 Ended Feb 29, 2020

    Lennar Corporation's first-quarter 2020 10-Q (quarter ended February 29, 2020) reports net earnings attributable to Lennar of $398.5 million, or $1.27 per diluted share, versus $239.9 million, or $0.74 per diluted share, in the first quarter of 2019. Homebuilding revenues rose to $4.17 billion from $3.62 billion, driven by a 17% increase in home deliveries (10,313 homes versus 8,802), partially offset by a 2% decrease in the average sales price to $402,000. Gross margin on home sales was 20.5%, up from 20.1%, and selling, general and administrative expenses improved to 9.2% of home sales revenue from 9.5%. Operating cash flow was $383.0 million, compared with negative $524.4 million a year earlier, and the company ended the quarter with $785 million of homebuilding cash and $2.1 billion of unused committed capacity under its revolving credit facility. The filing's subsequent-event note and MD&A state that COVID-19 has caused certain markets to stop construction and sales, that traffic in Welcome Home Centers and sales have slowed significantly, and that sales contract cancellations have increased significantly. Management says it cannot predict the long-term impact of the pandemic and is limiting cash expenditures, reducing construction costs, and deferring land development to maximize cash flow. Homebuilding debt to total capital was 33.6% at February 29, 2020, compared with 32.8% at November 30, 2019, and the company declared a quarterly dividend of $0.125 per share on April 7, 2020. For investors, the key tension is between a strong quarter of reported earnings and margins and the pandemic-related outlook: the company itself states that sales will continue to slow and that the outbreak could have a material impact on future financial condition, results of operations, and cash flows.

    Apr 7, 2020
  22. 2019-Q3

    Lennar Quarterly Report for Q3 Ended Aug 31, 2019

    Lennar Corporation's 10-Q for the quarter ended August 31, 2019 reported net earnings attributable to Lennar of $513.4 million, or $1.59 per diluted share, in the third quarter of 2019, up from $453.2 million, or $1.37 per diluted share, a year earlier. For the nine months, net earnings attributable to Lennar were $1.2 billion, or $3.63 per diluted share, compared with $899.7 million, or $2.94 per diluted share, in the prior-year period. Total revenues were $5.86 billion for the quarter and $15.29 billion for the nine months. Homebuilding gross margin on home sales was 20.4% in the third quarter of 2019 versus 20.3% (21.9% excluding purchase accounting) a year earlier. The nine-month results include a one-time $48.9 million loss from consolidating a previously unconsolidated entity. Management described a housing market that continued to improve, with stronger sales, moderating sales incentives, and an expectation of approximately 51,000 home deliveries in fiscal 2019. The company is pivoting to a "land lighter" strategy, targeting controlled homesites of 40% to 50% of land needs and a years-owned supply of three years. Operating cash flow was $298.3 million for the nine months, compared with $726.4 million a year earlier, as inventories increased by $1.6 billion. Lennar repaid $500 million of 4.50% senior notes, drew $700 million on its Credit Facility, and repurchased $394.7 million of Class A stock under its repurchase program during the nine months. Homebuilding debt to total capital was 37.1% at August 31, 2019, compared with 36.9% at November 30, 2018. Net Homebuilding debt to total capital, a non-GAAP measure, was 35.0%. The company stated it was in compliance with its debt covenants, with a maximum leverage ratio of 42.2% against a 65.0% covenant level. Total stockholders' equity was $15.37 billion, and total assets were $29.46 billion.

    Oct 8, 2019
  23. 2019-Q2

    Lennar Quarterly Report for Q2 Ended May 31, 2019

    Lennar Corporation's 10-Q for the quarter ended May 31, 2019 reports net earnings attributable to Lennar of $421.5 million, or $1.30 per diluted share, in the second quarter of 2019, compared with $310.3 million, or $0.94 per diluted share, in the second quarter of 2018. For the six months, net earnings attributable to Lennar were $661.4 million, or $2.03 per diluted share, versus $446.5 million, or $1.52 per diluted share, a year earlier. Total revenues for the quarter were $5.56 billion, and Homebuilding revenues were $5.20 billion, with 12,706 home deliveries excluding unconsolidated entities at an average sales price of $407,000. The results include a one-time loss of $48.9 million from consolidating a previously unconsolidated homebuilding entity. Homebuilding gross margin on home sales was 20.1% in the quarter, and SG&A as a percentage of home sales revenue improved to 8.4%. Cash flow and leverage were weaker in the first half. Net cash used in operating activities was $429.9 million for the six months, driven mainly by a $1.5 billion increase in inventories, and cash and cash equivalents and restricted cash ended the period at $1.02 billion. Homebuilding debt rose to $9.39 billion from $8.54 billion at November 30, 2018, and the homebuilding debt-to-total-capital ratio was 38.3%, versus 36.9% at year-end 2018. Management said it expects margins to improve through the rest of the year as incentives subside and lumber savings and cost synergies come through, and that it expects strong cash flow in the remainder of 2019 to be used to pay down debt and repurchase stock. The company also amended its unsecured revolving Credit Facility in April 2019 to $2.4 billion with an April 2024 maturity, and repurchased two million Class A shares for about $98.8 million during the six months.

    Jul 3, 2019
  24. 2019-Q1

    Lennar Quarterly Report for Q1 Ended Feb 28, 2019

    Lennar Corporation's Form 10-Q for the quarter ended February 28, 2019 reports first-quarter net earnings attributable to Lennar of $239.9 million, or $0.74 per diluted share, compared with $136.2 million, or $0.53 per diluted share, in the first quarter of 2018. Total revenues rose to $3.87 billion from $2.98 billion, driven primarily by Homebuilding revenues of $3.62 billion, up from $2.66 billion, as home deliveries increased 31% (excluding unconsolidated entities) following the CalAtlantic acquisition completed February 12, 2018. Homebuilding gross margin on home sales was 20.1%, versus 19.5% a year earlier, and SG&A improved to 9.5% of home sales revenue. The prior-year quarter included a $164.9 million gain on the sale of an 80% interest in Treasure Island Holdings and $104.2 million of CalAtlantic acquisition costs, so year-over-year earnings comparisons are affected by those items. The 2018 quarter also included a $68.6 million non-cash deferred tax write-down. Liquidity was weaker in the quarter. Cash used in operating activities was $524.4 million, mainly reflecting a $1.07 billion increase in inventories, and cash and cash equivalents plus restricted cash fell to $1.06 billion. Homebuilding senior notes and other debts payable rose to $9.26 billion from $8.54 billion at November 30, 2018, including $725.0 million of borrowings under the Credit Facility. Homebuilding debt to total capital was 38.5%, compared with 36.9% at year-end 2018. Management stated its expectation of delivering 50,000 to 51,000 homes in fiscal 2019 and said it continues to pursue a pure-play homebuilder strategy, having sold most of its retail title, retail mortgage and real estate brokerage businesses during the quarter.

    Apr 8, 2019
  25. 2018-Q3

    Lennar Quarterly Report for Q3 Ended Aug 31, 2018

    Lennar Corporation's Form 10-Q for the quarter ended August 31, 2018 reports results that reflect the February 12, 2018 acquisition of CalAtlantic Group, Inc. For the third quarter of 2018, net earnings attributable to Lennar were $453.2 million, or $1.37 per diluted share, versus $249.2 million, or $1.04 per diluted share, in the third quarter of 2017. Total revenues rose to $5.67 billion from $3.26 billion, with Lennar Homebuilding revenues of $5.29 billion. Earnings were reduced by $84.1 million of pretax backlog/construction-in-progress purchase accounting write-ups and $12.0 million of CalAtlantic acquisition and integration costs, partly offset by $34.1 million of tax benefits. For the nine months, net earnings attributable to Lennar were $899.7 million, or $2.94 per diluted share, including a $68.6 million one-time non-cash write-down of deferred tax assets under the Tax Cuts and Jobs Act. The balance sheet expanded substantially: total assets were $28.29 billion at August 31, 2018, versus $18.75 billion at November 30, 2017, and Lennar Homebuilding senior notes and other debts payable rose to $9.41 billion from $6.41 billion. Goodwill in Lennar Homebuilding increased to $3.46 billion, mainly from the provisional $3.3 billion allocated to the CalAtlantic acquisition. The company reported Lennar Homebuilding debt to total capital of 40.1%, compared with 44.9% at November 30, 2017, and stated it was in compliance with its debt covenants. Cash and cash equivalents across all segments were $1.05 billion, down from $2.65 billion at the start of the fiscal year, after $1.1 billion was used for the CalAtlantic acquisition and $825 million of senior notes were redeemed. Management stated that it expects CalAtlantic synergy savings of $160 million for 2018 and $380 million for 2019. The filing also states that Lennar has engaged investment bankers to evaluate strategic alternatives for Rialto, and that it received offers to monetize that business and is evaluating them. Rialto's total assets were $834.9 million at August 31, 2018. The company declared a quarterly dividend of $0.04 per share on October 4, 2018.

    Oct 9, 2018
  26. 2018-Q2

    Lennar Quarterly Report for Q2 Ended May 31, 2018

    Lennar Corporation's 10-Q for the quarter ended May 31, 2018 shows a transformed balance sheet following its February 12, 2018 acquisition of CalAtlantic Group, Inc. Total assets rose to $28.35 billion from $18.75 billion at November 30, 2017, and Lennar Homebuilding senior notes and other debts payable increased to $9.99 billion from $6.41 billion. Goodwill in Lennar Homebuilding grew to $3.45 billion from $136.6 million, reflecting a provisional $3.3 billion allocated to CalAtlantic goodwill. Stockholders' equity rose to $13.59 billion from $7.87 billion, largely from $5.07 billion of stock issued in the acquisition. For the three months ended May 31, 2018, net earnings attributable to Lennar were $310.3 million, or $0.94 per diluted share, versus $213.6 million, or $0.89 per diluted share, a year earlier. Results were reduced by $236.8 million of pretax purchase accounting write-ups on CalAtlantic homes delivered and $23.9 million of acquisition and integration costs. For the six months, net earnings attributable to Lennar were $446.5 million, or $1.52 per diluted share, which included a $164.9 million gain on the sale of an 80% interest in Treasure Island Holdings and a $68.6 million non-cash write-down of deferred tax assets under the Tax Cuts and Jobs Act. Management stated that its first priority as deliveries increase is to pay down debt and reduce leverage. The company raised its 2018 synergy savings expectation to $160 million and its 2019 target to $380 million, and it engaged advisers regarding strategic alternatives for Rialto. Lennar Homebuilding debt to total capital was 42.4% at May 31, 2018, and the company reported it was in compliance with its credit agreement covenants.

    Jul 6, 2018
  27. 2018-Q1

    Lennar Quarterly Report for Q1 Ended Feb 28, 2018

    Lennar Corporation's first-quarter 2018 10-Q (quarter ended February 28, 2018) reflects the February 12, 2018 acquisition of CalAtlantic Group, Inc., which drove a sharp increase in the balance sheet and debt. Total assets rose to $27.94 billion from $18.75 billion at November 30, 2017, goodwill increased to $3.43 billion from $136.6 million, and Lennar Homebuilding senior notes and other debts payable rose to $10.38 billion from $6.41 billion. Total revenues were $2.98 billion versus $2.34 billion a year earlier, and net earnings attributable to Lennar were $136.2 million, or $0.53 per diluted share, compared with $38.1 million, or $0.16, in the prior-year quarter. Earnings were reduced by $104.2 million of pretax acquisition and integration costs and a $68.6 million non-cash write-down of deferred tax assets from the Tax Cuts and Jobs Act; the effective tax rate was 49.3%, or 23.8% excluding that write-down. Results also included a $164.9 million gain on the sale of an 80% interest in the Treasure Island Holdings joint venture, which was a major contributor to Homebuilding West operating earnings. Operating cash flow was negative at ($142.7) million, mainly because inventories increased by $548.7 million. Lennar Homebuilding debt to total capital was 44.3% and net debt to total capital was 42.5%. Management said it expects approximately $100 million of synergy savings in 2018 and $365 million in 2019, and that its first priority is to pay down debt as CalAtlantic deliveries increase. The company also engaged advisers regarding strategic alternatives for its Rialto segment.

    Apr 9, 2018
  28. 2017-Q3

    Lennar Quarterly Report for Q3 Ended Aug 31, 2017

    Lennar Corporation's Form 10-Q for the quarter ended August 31, 2017 reports net earnings attributable to Lennar of $249.2 million, or $1.06 per diluted share, for the third quarter, compared with $235.8 million, or $1.01 per diluted share, a year earlier. For the nine months, net earnings attributable to Lennar were $500.9 million, or $2.13 per diluted share, versus $598.4 million, or $2.59 per diluted share, in the prior-year period. Total revenues for the nine months were $8.86 billion, and the results include the acquisition of WCI Communities, Inc. on February 10, 2017 for $642.6 million in cash, along with a $140 million loss due to litigation over a Maryland property contract that was settled by purchasing the property for $114 million plus about $124 million of interest and closing costs. Homebuilding remained the core driver. Third-quarter home sales revenues were $2.85 billion, gross margin on home sales was 22.8%, and SG&A as a percentage of home sales revenues was 9.2%. New orders rose 8% and home deliveries rose 12% year over year. Management expects somewhat lower gross margins in the fourth quarter of 2017 than in the same quarter of 2016 and plans to deliver approximately 29,000 homes in fiscal 2017, with 950 deliveries pushed into 2018 due to Hurricanes Harvey and Irma. Lennar Homebuilding debt to total capital was 42.2% at August 31, 2017, compared with 39.4% at November 30, 2016, and cash and cash equivalents across the company totaled $837.7 million. Beyond homebuilding, Lennar Financial Services earned $49.1 million in the quarter, down from $53.2 million, as refinance activity declined. Rialto reported an operating loss of $3.2 million for the quarter, and Lennar Multifamily earned $9.1 million, aided by $15.4 million of its share of property sale gains. The company also issued $600 million of 4.125% senior notes due 2022 and $650 million of 4.50% senior notes due 2024, and it redeemed $400 million of 12.25% senior notes due 2017 and $250 million of 6.875% senior notes assumed in the WCI acquisition.

    Oct 10, 2017
  29. 2017-Q2

    Lennar Quarterly Report for Q2 Ended May 31, 2017

    Lennar Corporation's Form 10-Q for the quarter ended May 31, 2017 reports net earnings attributable to Lennar of $213.6 million, or $0.91 per diluted share, for the second quarter, compared with $218.5 million, or $0.95 per diluted share, in the prior-year quarter. For the six months, net earnings attributable to Lennar were $251.7 million, or $1.07 per diluted share, versus $362.5 million, or $1.58 per diluted share, a year earlier. Results were affected by a $140 million accrual for Maryland land-purchase litigation recorded in the six months, and by WCI Communities, acquired February 10, 2017 for $642.6 million in cash. Homebuilding revenues rose, with second-quarter home sales revenue of $2.9 billion, up 18%, and gross margin on home sales of 21.5%, down from 23.1%. Investors should note the balance-sheet expansion: total assets rose to $16.75 billion from $15.36 billion, and Lennar Homebuilding senior notes and other debts payable increased to $5.77 billion from $4.58 billion, following the issuance of $600 million of 4.125% senior notes due 2022 and $650 million of 4.50% senior notes due 2024. Lennar Homebuilding debt to total capital rose to 44.1% from 39.4% at November 30, 2016. Net cash used in operating activities was $159.8 million for the six months, and cash and cash equivalents across the company were $984.0 million. Management stated it expects somewhat lower gross margins in the third quarter of 2017 compared with the third quarter of 2016, and that it is currently positioned to deliver between 29,500 and 30,000 homes in fiscal 2017. The company also reported that second-quarter new orders rose 12% and home deliveries rose 15% year over year, to 8,898 and 7,710 homes respectively.

    Jun 30, 2017
  30. 2017-Q1

    Lennar Quarterly Report for Q1 Ended Feb 28, 2017

    Lennar Corporation's Form 10-Q for the quarter ended February 28, 2017 reports first-quarter net earnings attributable to Lennar of $38.1 million, or $0.16 per diluted share, compared with $144.1 million, or $0.63 per diluted share, a year earlier. The results include a $140 million loss from a litigation accrual tied to a Maryland land purchase contract (about $0.40 per diluted share) and a net loss related to the WCI Communities acquisition of $0.03 per diluted share. Total revenues were $2.34 billion versus $1.99 billion, with Lennar Homebuilding revenues of $2.02 billion, and total operating earnings were $110.3 million versus $249.4 million. The company completed its acquisition of WCI on February 10, 2017 for $642.6 million in cash, funded largely by a $600 million issuance of 4.125% senior notes due 2022. Balance sheet leverage increased. Lennar Homebuilding senior notes and other debts payable rose to $5.78 billion from $4.58 billion at November 30, 2016, and the Lennar Homebuilding debt to total capital ratio was 44.8% versus 39.4% at November 30, 2016. Cash and cash equivalents fell to $929.1 million from $1.33 billion, and the company drew $250 million on its unsecured revolving credit facility. Stockholders' equity rose to $7.11 billion. The company stated it was in compliance with its debt covenants, with a maximum leverage ratio of 46.1% against a 65.0% covenant level. Management's outlook calls for somewhat lower second-quarter gross margins compared with the prior year, citing cost increases outpacing price increases, competitive pressures and purchase accounting write-ups of WCI backlog. The company stated it is positioned to deliver between 29,500 and 30,000 homes in fiscal 2017. In the first quarter, new orders rose to 6,483 homes from 5,794 and home deliveries rose to 5,453 from 4,832, while the gross margin on home sales was 21.1% versus 22.7%.

    Apr 10, 2017
  31. 2016-Q3

    Lennar Quarterly Report for Q3 Ended Aug 31, 2016

    Lennar Corporation's 10-Q for the quarter ended August 31, 2016 reports net earnings attributable to Lennar of $235.8 million, or $1.01 per diluted share, for the third quarter, up from $223.3 million, or $0.96 per diluted share, a year earlier. For the nine months, net earnings attributable to Lennar were $598.4 million, or $2.59 per diluted share, compared with $521.3 million, or $2.25 per diluted share. Lennar Homebuilding revenues for the nine months were $6.73 billion, and home sales revenues rose 16% to $6.6 billion on a 10% increase in deliveries and a 6% increase in average sales price. Homebuilding gross margin on home sales was 22.8% for the nine months, down from 23.7%, which management attributed mainly to higher land costs. Management expects somewhat lower gross margins in the fourth quarter of 2016 than in the fourth quarter of 2015. Lennar Homebuilding debt to total capital declined to 42.9% from 47.1% at November 30, 2015, reflecting higher stockholders' equity and lower Homebuilding debt, which fell to $4.92 billion. During the nine months, holders converted the 2.75% convertible senior notes and about $243 million of 3.25% convertible senior notes, and the company issued $500 million of 4.750% senior notes due 2021 to redeem its 6.50% senior notes due 2016. Cash and cash equivalents across all segments were $816.1 million at August 31, 2016. Net cash used in operating activities was $3.1 million for the nine months, compared with $1.09 billion a year earlier, largely because of inventory growth. Subsequent to quarter end, on September 22, 2016, Lennar agreed to acquire WCI Communities, Inc. through a merger valued at $23.50 per WCI share, consisting of cash and Class A common stock. The filing also discloses an ongoing Maryland litigation (Settlers Crossing) in which the District Court ordered the company to buy a property for $114 million plus 12% simple interest, which the company has appealed and believes is contrary to applicable law. No loss liability has been recorded, and the company has posted a $223.4 million bond to stay the judgment during appeal.

    Oct 4, 2016
  32. 2016-Q2

    Lennar Quarterly Report for Q2 Ended May 31, 2016

    Lennar Corporation's 10-Q for the quarter ended May 31, 2016 reports second-quarter net earnings attributable to Lennar of $218.5 million, or $0.95 per diluted share, versus $183.0 million, or $0.79 per diluted share, a year earlier. For the six months, net earnings attributable to Lennar were $362.5 million, or $1.58 per diluted share, compared with $298.0 million, or $1.30 per diluted share. Total revenues were $2.75 billion for the quarter, with Lennar Homebuilding revenues of $2.45 billion, and Lennar Homebuilding operating margins were $338.6 million. Homebuilding gross margin on home sales was 23.1% for the quarter, down from 23.8%, which the company attributes to higher land costs. Homebuilding deliveries rose to 6,724 homes in the quarter from 6,015, and new orders increased to 7,962 homes from 7,271. Management expects 26,500 to 27,000 home deliveries in fiscal 2016 and anticipates lower gross margins for the year. Lennar Homebuilding debt to total capital was 46.5% at May 31, 2016, down from 50.6% a year earlier, and cash and cash equivalents across the company were $815.5 million. The company issued $500 million of 4.750% senior notes due 2021, retired its 6.50% notes due 2016, and converted or exchanged its 2.75% convertible senior notes for about $234 million in cash and 5.2 million shares. The filing also discloses a pending Settlers Crossing litigation in Maryland, under which the court ordered the company to purchase a property for a $114 million balance plus 12% simple interest, which totaled approximately $109 million as of May 31, 2016. The company has appealed, believes the decision is contrary to law, and has recorded no liability. Rialto recorded a $16.0 million write-off of uncollectible receivables tied to a hospital asset, which drove its operating loss for the quarter.

    Jul 1, 2016
  33. 2016-Q1

    Lennar Quarterly Report for Q1 Ended Feb 29, 2016

    Lennar Corporation reported net earnings attributable to Lennar of $144.1 million, or $0.63 per diluted share ($0.68 per basic share), for the first quarter ended February 29, 2016, compared with $115.0 million, or $0.50 per diluted share, in the first quarter of 2015. Total revenues rose to $1.99 billion from $1.64 billion. Lennar Homebuilding revenues were $1.79 billion, with gross margin on home sales at 22.7% and operating margin at 11.9%. Average sales price of homes delivered increased to $365,000 from $326,000, and sales incentives declined to 5.6% of home sales revenue from 6.3%. Homebuilding backlog reached approximately $2.8 billion, up 19% in dollar value year over year. Management expects lower margins in 2016 than in 2015 due to rising costs and competitive pressures, and says the company is positioned to deliver 26,500 to 27,000 homes in fiscal 2016. Balance sheet and liquidity changed during the quarter. Cash and cash equivalents across all segments fell to $720.5 million from $1.16 billion at November 30, 2015. Lennar Homebuilding cash was $510.9 million. Lennar Homebuilding senior notes and other debts payable rose to $5.33 billion from $5.03 billion, driven by $500.0 million of borrowings under the $1.6 billion Credit Facility. The company exchanged and converted approximately $163 million of its 2.75% convertible senior notes due 2020 for about $163 million in cash and 3.6 million Class A shares. Lennar Homebuilding debt to total capital was 47.8%, versus 47.1% at November 30, 2015. Subsequent to quarter end, the company issued $500 million of 4.750% senior notes due 2021 and expects to use the proceeds partly to repay its 6.50% senior notes due 2016. Segment results were mixed. Lennar Financial Services earned $14.9 million, slightly below the prior year, mainly due to lower refinance volume. Lennar Multifamily earned $12.2 million, aided by a $20.4 million share of a gain on the sale of an operating property by an unconsolidated entity. Rialto generated operating earnings of $1.6 million, and management reduced its fiscal 2016 earnings expectations for Rialto amid capital markets turmoil. The filing also describes a pending Maryland contract dispute (Settlers Crossing) in which the District Court ordered the company to purchase a property for $114 million plus 12% simple interest; the company has appealed and has recorded no liability, while the court calculated a $223.4 million bond to stay the judgment.

    Apr 6, 2016
  34. 2015-Q3

    Lennar Quarterly Report for Q3 Ended Aug 31, 2015

    Lennar Corporation's Form 10-Q for the quarter ended August 31, 2015 reports net earnings attributable to Lennar of $223.3 million, or $0.96 per diluted share, for the third quarter, up from $177.8 million, or $0.78 per diluted share, a year earlier. For the nine months, net earnings attributable to Lennar were $521.3 million, or $2.25 per diluted share, compared with $393.6 million, or $1.73 per diluted share. Total revenues were $2.49 billion for the quarter and $6.53 billion for the nine months. Lennar Homebuilding revenues were $2.23 billion in the quarter, with homes sold at an average price of $350,000 and gross margin on home sales of 24.1%, versus 25.2% a year earlier. Sales incentives were 5.6% of home sales revenue in the quarter, and the backlog dollar value rose to approximately $3.0 billion. Liquidity and leverage were mixed. Net cash used in operating activities was $1.09 billion for the nine months, driven largely by a $1.28 billion increase in inventories. Cash and cash equivalents at the end of the period were $805.3 million. Lennar Homebuilding debt was $5.26 billion, and the Lennar Homebuilding debt-to-total-capital ratio was 49.5%, compared with 50.6% at August 31, 2014. The company issued $500 million of 4.750% senior notes due 2025 and an additional $250 million of 4.50% senior notes due 2019, and used the proceeds to redeem $500 million of 5.60% senior notes. It also exchanged or converted about $169 million of 2.75% convertible senior notes for cash and shares. The revolving Credit Facility balance was $575 million at quarter end. The filing also discloses a pending legal matter in the District of Maryland (Settlers Crossing). The court ordered Lennar to purchase a property for $114 million plus 12% simple interest, which the company estimates at approximately $99 million as of August 31, 2015. Lennar believes the decision is contrary to applicable law and will appeal, and it posted a $223.4 million bond to stay the judgment. The company states it does not believe a loss is probable and has recorded no liability.

    Oct 9, 2015
  35. 2015-Q2

    Lennar Quarterly Report for Q2 Ended May 31, 2015

    Lennar Corporation's 10-Q for the quarter ended May 31, 2015 reports second-quarter net earnings attributable to Lennar of $183.0 million, or $0.79 per diluted share, compared with $137.7 million, or $0.61 per diluted share, a year earlier. Total revenues were $2.39 billion versus $1.82 billion, driven by Lennar Homebuilding revenues of $2.12 billion, with 5,989 new homes delivered (excluding unconsolidated entities) compared with 4,976 in the prior-year quarter. Gross margin on home sales was 23.8%, down from 25.5%, which the company attributed mainly to higher land costs. Six-month net earnings attributable to Lennar were $298.0 million, or $1.30 per diluted share. Balance sheet activity was dominated by debt. Lennar Homebuilding senior notes and other debts payable rose to $5.29 billion from $4.69 billion at November 30, 2014, after the company issued $500 million of 4.750% senior notes due 2025 and $250 million of additional 4.50% senior notes, used to retire $500 million of 5.60% notes. Lennar drew $450 million on its unsecured revolving credit facility, and cash and cash equivalents fell to $920.2 million from $1.28 billion. Net cash used in operating activities was $994.5 million, mainly from inventory growth to $8.75 billion. Lennar Homebuilding debt to total capital was 50.7%, and the company stated it was in compliance with its debt covenants. The filing also discloses a legal matter: a District Court ruling in the Settlers Crossing case ordered Lennar to purchase a Maryland property for a $114 million balance plus 12% simple interest, which the company estimated at approximately $96 million as of May 31, 2015. Lennar believes the decision is contrary to applicable law and will appeal, and it has not recorded a liability. The company also reported a $43.0 million equity gain from its El Toro joint venture for the six months, and it reaffirmed expectations of another year of increased profitability in fiscal 2015.

    Jul 2, 2015
  36. 2015-Q1

    Lennar Quarterly Report for Q1 Ended Feb 28, 2015

    Lennar Corporation's Form 10-Q for the first quarter ended February 28, 2015 reports net earnings attributable to Lennar of $115.0 million, or $0.50 per diluted share ($0.56 basic), versus $78.1 million, or $0.35 per diluted share, in the prior-year quarter. Total revenues rose to $1.64 billion from $1.36 billion, and the company stated that net earnings increased 47% on a 21% increase in revenues. Homebuilding gross margin on home sales was 23.1%, down from 25.1%, which management attributed to higher materials, labor and land costs. Homebuilding segment results were supported by $31.3 million of equity earnings tied to the sale of about 600 homesites by Heritage Fields El Toro, an unconsolidated entity. Balance sheet and liquidity shifted during the quarter. Cash and cash equivalents for the Lennar Homebuilding segment fell to $583.8 million from $885.7 million, while Lennar Homebuilding senior notes and other debts payable rose to $5.13 billion from $4.69 billion, driven by the $250 million add-on of 4.50% senior notes due 2019 and $250 million of borrowings under the unsecured revolving credit facility. Lennar Homebuilding debt to total capital was 50.9%, compared with 49.3% at November 30, 2014. Net cash used in operating activities was $730.3 million, reflecting inventory growth from strategic land purchases. The filing also discloses a pending legal matter in which a District Court in January 2015 ordered the company to purchase a Maryland property for a $114 million balance plus 12% interest from May 27, 2008. The company believes the decision is contrary to applicable law and will appeal, and has recorded no liability. Management stated it expects some homebuilding margin contraction in fiscal 2015 and reaffirmed expectations to deliver 23,500 to 24,000 homes with gross margins averaging about 24% for fiscal 2015.

    Apr 3, 2015
  37. 2014-Q3

    Lennar Quarterly Report for Q3 Ended Aug 31, 2014

    Lennar Corporation's Form 10-Q for the quarter ended August 31, 2014 reports net earnings attributable to Lennar of $177.8 million, or $0.78 per diluted share, in the third quarter of 2014, up from $120.7 million, or $0.54 per diluted share, a year earlier. For the nine months, net earnings attributable to Lennar were $393.6 million, or $1.73 per diluted share, versus $315.6 million, or $1.42 per diluted share, in the prior-year period. Home sales revenues rose 25% in the quarter to $1.8 billion, driven by a 10% increase in home deliveries and a 14% increase in average sales price, and new orders increased 23%. Total revenues for the quarter were $2.01 billion, compared with $1.60 billion a year earlier. The balance sheet grew to $12.29 billion in total assets, with Lennar Homebuilding debt of $4.69 billion against stockholders' equity of $4.58 billion, a Lennar Homebuilding debt-to-total-capital ratio of 50.6%. Cash and cash equivalents across segments totaled $833.5 million. During the nine months, the company issued $500 million of 4.50% senior notes due 2019 and Rialto issued an additional $100 million of 7.00% senior notes and $73.8 million of structured notes, while net cash used in operating activities was $898.5 million, largely reflecting inventory growth. The company stated it was in compliance with its debt covenants and reported a maximum leverage ratio of 49.2% against a 65.0% covenant. Segment results were mixed: Rialto Investments operating earnings were $7.7 million for the nine months, Lennar Financial Services operating earnings declined to $49.9 million from $68.8 million amid lower refinance activity, and Lennar Multifamily posted an operating loss of $4.9 million for the nine months. Management stated it expects another year of strong profits in fiscal 2014.

    Oct 3, 2014
  38. 2014-Q2

    Lennar Quarterly Report for Q2 Ended May 31, 2014

    Lennar Corporation's quarterly report for the three and six months ended May 31, 2014 shows strong second-quarter results. Net earnings attributable to Lennar were $137.7 million, or $0.61 per diluted share, compared with $137.4 million, or $0.61 per diluted share, in the second quarter of 2013. Total revenues rose to $1.82 billion from $1.43 billion, and Lennar Homebuilding revenues were $1.63 billion. Management reported a gross margin of 25.5% on home sales and cited a 6.7% year-over-year reduction in sales incentives as a percentage of home sales revenue. Homebuilding sales backlog reached 6,858 homes, or $2.4 billion, compared with 6,163 homes, or $1.9 billion, a year earlier. The filing reiterates expectations to deliver 21,000 to 22,000 homes in fiscal 2014 with gross margins averaging about 25%. The quarter's results also reflect a higher effective tax rate of 37.04%, versus 12.42% in the prior year, which included a valuation allowance reversal. Rialto Investments operated at a $3.7 million operating loss for the quarter, driven by $33.9 million of loan impairments, and Lennar Multifamily posted a $7.2 million operating loss. Financial Services operating earnings fell to $18.3 million from $29.2 million, reflecting a sharp drop in refinance activity. Cash and cash equivalents across the company totaled $960.2 million at May 31, 2014. Balance sheet leverage increased. Lennar Homebuilding senior notes and other debts payable rose to $4.68 billion from $4.19 billion at November 30, 2013, after the company issued $500 million of 4.50% senior notes due 2019. Lennar Homebuilding debt to total capital was 51.6%, compared with 55.8% a year earlier, and net Lennar Homebuilding debt to total capital was 48.0%. Inventories grew to $7.40 billion, and operating cash flow was negative $721.7 million for the six months as the company invested in land. Subsequent to quarter end, the company amended its credit facility to $1.5 billion and extended its maturity to June 2018.

    Jul 3, 2014
  39. 2014-Q1

    Lennar Quarterly Report for Q1 Ended Feb 28, 2014

    Lennar Corporation's Form 10-Q for the quarter ended February 28, 2014 (filed April 9, 2014) reports first-quarter revenues of $1.36 billion, up from $990.2 million a year earlier, and net earnings attributable to Lennar of $78.1 million, or $0.35 per diluted share, compared with $57.5 million, or $0.26 per diluted share, in the prior-year quarter. Results included a $45.9 million tax provision. Lennar Homebuilding revenues rose to $1.23 billion from $868.4 million, with homes delivered up to 3,597 from 3,174 and the average sales price of homes delivered increasing to $316,000 from $269,000. Gross margin on home sales improved to 25.1% from 22.1%, and sales incentives fell to $21,300 per home from $23,300. Balance sheet and liquidity: total assets were $11.53 billion and total equity was $4.70 billion at February 28, 2014. Cash and cash equivalents across all segments totaled $874.3 million, and Lennar Homebuilding debt rose to $4.66 billion from $4.19 billion at November 30, 2013 after the company issued $500 million of 4.50% senior notes due 2019. Lennar Homebuilding debt to total capital was 52.3%, and net debt to total capital was 48.5%. Operating cash flow was negative $394.6 million, largely reflecting a $592.0 million increase in inventories tied to strategic land purchases. The filing states the company was in compliance with its debt covenants and that it expects to deliver 21,000 to 22,000 homes in fiscal 2014 with gross margins averaging about 25%. Segment results: Lennar Financial Services operating earnings fell to $4.5 million from $16.1 million, mainly on lower refinance volume. Rialto Investments operating earnings rose to $3.5 million from $1.4 million, aided by its new Rialto Mortgage Finance origination and securitization business, which originated $295.5 million of loans and sold $253.0 million into securitizations. Lennar Multifamily posted an operating loss of $6.2 million, and its portfolio included 15 communities. Management states it is on track for another year of profitability in fiscal 2014.

    Apr 9, 2014
  40. 2013-Q3

    Lennar Quarterly Report for Q3 Ended Aug 31, 2013

    Lennar Corporation's Form 10-Q for the quarter ended August 31, 2013 reports third-quarter net earnings attributable to Lennar of $120.7 million, or $0.54 per diluted share, compared with $87.1 million, or $0.40 per diluted share, a year earlier. Revenues rose to $1.60 billion from $1.10 billion, led by Lennar Homebuilding revenues of $1.46 billion versus $955.8 million. Homebuilding deliveries rose 37% and the average sales price of homes delivered increased 13%, to $291,000. Homebuilding gross margin on home sales was 24.9%, compared with 23.2% a year earlier. The third-quarter results include a $67.2 million income tax provision, reflecting the partial reversal of the deferred tax asset valuation allowance and tax on current pre-tax earnings. For the nine months, net earnings attributable to Lennar were $315.6 million, versus $554.8 million in the prior-year period, which included a large deferred tax benefit of $416.6 million. Cash used in operating activities was $1.02 billion, mainly reflecting a $1.47 billion increase in inventories. Total cash and cash equivalents fell to $571.8 million from $1.31 billion at November 30, 2012. Lennar Homebuilding senior notes and other debts payable rose to $4.62 billion from $4.01 billion, and Lennar Homebuilding debt to total capital was 55.5% at August 31, 2013, compared with 54.0% at November 30, 2012. The company states it was in compliance with its debt covenants and reports a leverage ratio of 57.6% against a 65.0% covenant maximum. Management states that the housing market is in a solid recovery mode and expects it to improve steadily over an extended period. It also states it is on track for another year of substantial profitability in fiscal 2013. During the quarter, Rialto Investments formed Rialto Mortgage Finance, which had originated $245.2 million of commercial loans and sold $198 million in a securitization in September 2013.

    Oct 10, 2013
  41. 2013-Q1-A

    Lennar Quarterly Report (Amendment) for Q1 Ended Feb 28, 2013

    Lennar Corporation's Form 10-Q for the quarter ended February 28, 2013 shows net earnings attributable to Lennar of $57.5 million, or $0.26 diluted earnings per share, compared with $15.0 million, or $0.08 per diluted share, in the prior-year quarter. Lennar Homebuilding revenues rose to $868.4 million from $624.4 million, and total revenues were $989.9 million versus $724.9 million. Total operating earnings were $84.6 million versus $33.3 million, and the company recorded a $3.6 million net benefit for income taxes after reversing $25.1 million of its state NOL valuation allowance. Net cash used in operating activities was $321.5 million, reflecting a $514.6 million increase in inventories. Balance sheet activity centered on debt: Lennar Homebuilding senior notes and other debts payable rose to $4.51 billion from $4.01 billion, driven by the issuance of $275 million of 4.125% senior notes due 2018 and $175 million of additional 4.750% senior notes due 2022. Total assets were $10.43 billion and total equity was $4.07 billion at February 28, 2013. Rialto Investments continued to wind down its FDIC-partnership notes payable, retiring $302.8 million of principal through the defeasance account during the quarter. The filing also discloses the restatement of supplemental consolidating financial information in Note 17, which revised intercompany and investment-in-subsidiary accounts and cash flow classifications without changing the consolidated financial statements. The company disclosed no share repurchases during the quarter, 6.2 million shares remaining under its program, and $82.2 million of accrued warranty reserves related to defective Chinese drywall.

    Aug 1, 2013
  42. 2013-Q2

    Lennar Quarterly Report for Q2 Ended May 31, 2013

    Lennar Corporation's Form 10-Q for the quarter ended May 31, 2013 reports a strong second quarter. Net earnings attributable to Lennar were $137.4 million, or $0.61 per diluted share, compared with $452.7 million, or $2.06 per diluted share, in the prior-year quarter. The current quarter included a net income tax provision of $19.5 million, reflecting a $60.8 million tax provision partly offset by a $41.3 million reversal of the deferred tax asset valuation allowance; the prior-year quarter benefited from a $403.0 million valuation allowance reversal. Homebuilding revenues rose to $1.28 billion from $808.1 million, with deliveries up 39% and the homebuilding gross margin on home sales at 24.1%. Total revenues were $1.43 billion for the quarter and $2.42 billion for the six months. Balance sheet leverage increased. Lennar Homebuilding senior notes and other debts payable rose to $4.54 billion at May 31, 2013 from $4.01 billion at November 30, 2012, and Lennar Homebuilding debt to total capital was 55.9%, compared with 54.0% at November 30, 2012. Cash and cash equivalents across the company fell to $891.7 million from $1.31 billion at year-end, mainly because operating cash flow was negative at $609.9 million for the six months, driven by a $952.7 million increase in inventories tied to strategic land purchases. Financing activities included $500 million of new senior notes, including $275 million of 4.125% notes due 2018 and $225 million of 4.750% notes due 2022. The Rialto Investments segment shifted from a balance sheet investment model toward managing funds, and its revenues fell to $25.7 million for the quarter. In June 2013, the company amended and increased its unsecured Credit Facility to $950 million, with maturity extended to June 2017. The filing also discloses that Lennar expects to file a Form 10-K/A and Form 10-Q/A to revise supplemental consolidating financial information in Note 17; the company states this will not affect its consolidated financial statements.

    Jul 10, 2013
  43. 2013-Q1

    Lennar Quarterly Report for Q1 Ended Feb 28, 2013

    Lennar Corporation's Form 10-Q for the quarter ended February 28, 2013 reports net earnings attributable to Lennar of $57.5 million, or $0.30 per basic share and $0.26 per diluted share, compared with $15.0 million, or $0.08 per share, in the prior-year quarter. The results include a $3.6 million net benefit for income taxes, which reflects a $25.1 million reversal of the valuation allowance on state net operating loss carryforwards, partly offset by a $21.5 million tax provision. Total revenues rose to $989.9 million from $724.9 million. Lennar Homebuilding revenues were $868.4 million, and homebuilding operating earnings were $67.1 million versus $20.0 million a year earlier. Lennar Financial Services operating earnings were $16.1 million, compared with $8.3 million, and Rialto Investments operating earnings were $1.4 million, compared with $5.1 million. New orders were 4,055 homes ($1.16 billion) versus 3,022 homes ($763.3 million) a year earlier, and backlog reached 4,922 homes ($1.46 billion) versus 2,711 homes ($711.4 million). The filing states that new orders and backlog increased 34% and 82%, respectively, from the prior year. Cash cost of operations was not separately quantified; cash used in operating activities was $321.5 million, driven by a $514.6 million increase in inventories tied to strategic land purchases. Cash and cash equivalents across homebuilding, financial services and Rialto totaled $1.24 billion at period end. Lennar Homebuilding debt to total capital rose to 56.3% from 54.0% at November 30, 2012, following the issuance of $275 million of 4.125% senior notes due 2018 and $175 million of 4.750% senior notes due 2022. The company reports that its Credit Facility covenants were met at February 28, 2013, with a consolidated tangible net worth of $2.60 billion against a required minimum of $1.79 billion and a leverage ratio of 48.2% against a 67.0% maximum. Management describes 2013 as a year of continued market improvement, with price increases expected to outpace cost increases, while noting that Rialto will be a transitional year as its second fund ramps up.

    Apr 9, 2013
  44. 2012-Q3

    Lennar Quarterly Report for Q3 Ended Aug 31, 2012

    Lennar Corporation's Form 10-Q for the quarter ended August 31, 2012 reports a sharp improvement in profitability, driven largely by a $416.6 million tax benefit recorded in the nine months, which included a $447.0 million partial reversal of the deferred tax asset valuation allowance. Net earnings attributable to Lennar were $87.1 million ($0.40 diluted EPS) in the third quarter of 2012, versus $20.7 million ($0.11) a year earlier, and $554.8 million ($2.56 diluted EPS) for the nine months, versus $61.9 million ($0.33) in the prior-year period. Lennar Homebuilding revenues rose to $955.8 million in the quarter from $711.8 million, with homes delivered up 28% and new orders up 44%, and the filing notes homebuilding operating margins of 11.2% in the quarter. Management states that the housing market appears to have stabilized and that the company has recorded its tenth consecutive quarter of earnings. Balance sheet and liquidity remain a focus for investors. Total assets were $9.72 billion and total stockholders' equity was $3.27 billion at August 31, 2012. Lennar Homebuilding senior notes and other debts payable rose to $3.67 billion, and Lennar Homebuilding debt to total capital was 52.9%. The company issued $400 million of 4.75% senior notes due 2017, repurchased $204.7 million of its 5.95% senior notes due 2013 through a tender offer, and issued an additional $50 million of 3.25% convertible senior notes. Cash used in operating activities was $490.5 million for the nine months, largely reflecting inventory growth, and cash and cash equivalents totaled $845.2 million. The Rialto Investments segment posted an operating loss of $5.7 million in the quarter, and the AB PPIP fund began unwinding, with liquidating distributions expected in the fourth quarter of 2012.

    Oct 10, 2012
  45. 2012-Q2

    Lennar Quarterly Report for Q2 Ended May 31, 2012

    Lennar Corporation's Form 10-Q for the quarter ended May 31, 2012 shows a sharp swing in reported profitability, driven largely by a non-operating tax item. Net earnings attributable to Lennar were $452.7 million, or $2.06 per diluted share, in the second quarter of 2012, compared with $13.8 million, or $0.07 per diluted share, a year earlier. The results include a $403.0 million partial reversal of the valuation allowance against deferred tax assets, equal to $1.85 per diluted share. The company describes the underlying business as improving: management cites $0.21 per diluted share of operating earnings, deliveries of 3,222 homes in the quarter versus 2,682, new orders up and backlog of 3,970 homes ($1,061.4 million) at May 31, 2012 versus 2,470 homes a year earlier. Total revenues were $930.2 million for the quarter, and total operating earnings were $81.3 million. Balance sheet and liquidity remain central investor considerations. Lennar Homebuilding debt was $3.47 billion at May 31, 2012, and the Lennar Homebuilding debt-to-total-capital ratio was 52.2%, down from 55.5% at November 30, 2011. Cash and cash equivalents across the company were $829.4 million, and operating cash flow for the six months was negative at $(213.8) million, reflecting a $329.9 million increase in inventories. The company entered a $525 million unsecured revolving credit facility in May 2012 with no outstanding borrowings, and the filing reports compliance with its debt covenants. Rialto Investments, the company's distressed-asset segment, posted quarterly operating earnings of $7.5 million, down from $22.7 million, with revenues falling to $33.5 million from $42.6 million. Its results are sensitive to REO gains, FDIC partnership loan accretion and fund investments. Investors should weigh the one-time tax benefit against the continuing operating trends when assessing earnings quality.

    Jul 10, 2012
  46. 2012-Q1

    Lennar Quarterly Report for Q1 Ended Feb 29, 2012

    Lennar Corporation's Form 10-Q for the quarter ended February 29, 2012 reports first-quarter net earnings attributable to Lennar of $15.0 million, or $0.08 per basic and diluted share, compared with $27.4 million, or $0.15 basic and $0.14 diluted, in the prior-year quarter. The prior-year figure included $37.5 million, or $0.19 per diluted share, from a non-recurring litigation settlement. Total revenues rose to $724.9 million from $558.0 million, led by Lennar Homebuilding revenues of $624.4 million, up from $466.7 million. Home sales revenue increased 33% to $610.7 million on a 30% increase in home deliveries, and gross margin on home sales was 20.9%, compared with 20.0% a year earlier. Management cited a 33% year-over-year increase in new orders as evidence of a stabilizing housing market. The balance sheet shows cash and cash equivalents of $922.9 million across homebuilding, financial services and Rialto operations, and total assets of $8.87 billion. Lennar Homebuilding debt to total capital was 56.1%, up from 55.5% at November 30, 2011, as senior notes and other debts payable rose to $3.47 billion, partly from a $50.0 million add-on to the 3.25% convertible senior notes due 2021. Operating cash flow was negative $132.4 million, driven by strategic land purchases and a decrease in accounts payable and other liabilities. The company still carried a $561.3 million valuation allowance against its deferred tax assets. Rialto Investments contributed operating earnings of $5.1 million, net of a $4.3 million net loss attributable to noncontrolling interests, versus $23.0 million a year earlier. Rialto's prior-year results were boosted by real estate owned gains, and the company retired $156.9 million of FDIC-related notes payable through a defeasance account during the quarter.

    Apr 9, 2012
  47. 2011-Q3

    Lennar Quarterly Report for Q3 Ended Aug 31, 2011

    Lennar Corporation's Form 10-Q for the quarter ended August 31, 2011 reports net earnings attributable to Lennar of $20.7 million, or $0.11 per diluted share, in the third quarter of 2011, compared to $30.0 million, or $0.16 per share, a year earlier. For the nine months, net earnings attributable to Lennar were $61.9 million, or $0.33 per diluted share, versus $63.2 million, or $0.34, in the prior-year period. Total revenues were $820.2 million for the quarter and $2.14 billion for the nine months. Management attributed the third-quarter decline mainly to lower Lennar Homebuilding equity in earnings from unconsolidated entities and higher other interest expense, partly offset by higher Lennar Homebuilding other income, net. For the nine months, lower home sales revenue from fewer deliveries and higher interest expense were the main drags, partly offset by other income and a stronger Rialto Investments segment. The balance sheet shows cash and cash equivalents of $927.3 million on a consolidated basis, with Lennar Homebuilding cash of $800.3 million, and Lennar Homebuilding senior notes and other debts payable of $3.13 billion. Stockholders' equity was $2.67 billion. Management reported Lennar Homebuilding debt to total capital of 53.9% at August 31, 2011, compared with 54.5% at November 30, 2010, and net Lennar Homebuilding debt to total capital of 46.6%, up from 42.4%. Net cash used in operating activities was $115.6 million for the nine months, compared with $189.1 million provided in the prior-year period, which the filing attributes largely to a $323.7 million tax refund received in the prior year. Management cited third-quarter new orders up 11% year over year and home deliveries of 2,832 excluding unconsolidated entities, with sales incentives at $33,600 per home delivered (12.0% of home sales revenue). Rialto Investments generated operating earnings of $11.7 million in the quarter, including a $10.1 million mark-to-market charge on its AB PPIP investment, and management noted that Rialto's future earnings could be volatile. The filing also reports valuation adjustments and write-offs of $13.5 million for the quarter and $40.1 million for the nine months, and states that further deterioration in the housing market could lead to additional valuation adjustments.

    Oct 11, 2011
  48. 2011-Q2

    Lennar Quarterly Report for Q2 Ended May 31, 2011

    Lennar Corporation's Form 10-Q for the quarter ended May 31, 2011 reports net earnings attributable to Lennar of $13.8 million, or $0.07 per basic and diluted share, for the second quarter, compared to $39.7 million, or $0.21 per share, a year earlier. For the six months, net earnings attributable to Lennar were $41.2 million, or $0.22 per share, versus $33.2 million, or $0.18 per share. Total revenues for the quarter were $764.5 million, down from $814.5 million, driven by a 9% decrease in home deliveries excluding unconsolidated entities, partly offset by a 2% increase in the average sales price. Management attributed the lower homebuilding results to the absence of the federal homebuyer tax credit and higher sales incentives, which reached $33,900 per home delivered, or 12.1% of home sales revenue. The Rialto Investments segment was a key contributor, with quarterly operating earnings of $22.7 million, supported by $15.3 million of other income, primarily gains on foreclosed real estate owned. For the six months, Rialto operating earnings were $45.7 million. Lennar Financial Services operating earnings fell to $2.5 million for the quarter from $13.7 million, reflecting lower mortgage and title volume. Homebuilding segment results were mixed: West segment operating earnings for the six months were $40.5 million, helped by a $37.5 million litigation settlement receipt, while Central segment posted operating losses. Balance sheet and liquidity remained substantial, with cash and cash equivalents of $1.13 billion at May 31, 2011, Lennar Homebuilding debt of $3.10 billion, and stockholders' equity of $2.65 billion. Lennar Homebuilding debt to total capital was 53.9%, and net debt to total capital was 44.9%. Management noted that demand trends remain depressed and that further valuation adjustments are possible if the housing market deteriorates further.

    Jul 11, 2011
  49. 2011-Q1

    Lennar Quarterly Report for Q1 Ended Feb 28, 2011

    Lennar Corporation reported net earnings attributable to Lennar of $27.4 million, or $0.15 per basic share and $0.14 per diluted share, for the first quarter ended February 28, 2011, compared with a net loss attributable to Lennar of $6.5 million, or $0.04 per share, in the same quarter of 2010. Total revenues were $558.0 million versus $574.4 million a year earlier. Lennar Homebuilding revenues were $466.7 million, and the gross margin on home sales improved to 20.0% from 19.2%, primarily due to lower sales incentives. Results were helped by a $37.5 million litigation settlement and a $15.4 million share of a debt extinguishment gain at an unconsolidated entity. The company stated that new orders declined 12% year over year and that the timing of the housing recovery remains uncertain. Rialto Investments, the company's distressed-asset segment, generated operating earnings of $23.0 million on revenues of $33.6 million, including $12.0 million of net earnings attributable to noncontrolling interests tied to the FDIC loan portfolios. Cash and cash equivalents across homebuilding, financial services and Rialto totaled $1.21 billion at February 28, 2011. Lennar Homebuilding debt was $3.13 billion, and the Lennar Homebuilding debt-to-total-capital ratio was 54.2%. Operating cash flow was $9.7 million, down from $89.4 million, reflecting a $93.8 million tax refund received in the prior-year quarter. The filing also discloses approximately 950 Florida homes with confirmed defective Chinese drywall, with $82.2 million of warranty reserves accrued for these homes through February 28, 2011. Valuation adjustments and write-offs totaled $22.5 million in the quarter, up from $10.1 million a year earlier. The company reversed $8.5 million of its deferred tax asset valuation allowance, which still stood at $601.0 million.

    Apr 11, 2011
  50. 2010-Q3

    Lennar Quarterly Report for Q3 Ended Aug 31, 2010

    Lennar Corporation's Form 10-Q for the quarter ended August 31, 2010 reports net earnings attributable to Lennar of $30.0 million, or $0.16 per basic and diluted share, in the third quarter of 2010, compared to a net loss attributable to Lennar of $171.6 million, or $0.97 per share, in the third quarter of 2009. For the nine months, net earnings attributable to Lennar were $63.2 million, or $0.34 per share, versus a net loss of $452.7 million, or $2.72 per share, a year earlier. Management attributes the improvement mainly to lower valuation adjustments, reduced sales incentives, and cost reductions, and notes that the Rialto Investments segment has begun contributing to earnings. Total revenues for the quarter were $825.0 million, up from $720.7 million, and total operating earnings were $63.4 million versus a loss of $144.1 million. The filing also flags headwinds. New sales orders for the third quarter were down 15% from the prior year after the federal homebuyer tax credit expired in April. Management said demand trends decreased after the expiration, and that further deterioration could bring additional pricing pressure, slower absorption and valuation adjustments. Lennar Homebuilding debt rose to $2.84 billion, and net Lennar Homebuilding debt to total capital increased to 44.1% from 36.9% at November 30, 2009. Cash and cash equivalents fell to $1.0 billion from $1.5 billion a year earlier. Rialto Investments, a new reportable segment formed around distressed real estate, held $1.41 billion of assets at quarter end, including $1.13 billion of loans receivable from its FDIC-partnership LLCs. Subsequent to quarter end, on September 30, 2010, the company completed about $740 million of distressed real estate acquisitions for $310 million in cash and a $125 million note. The filing also notes a reserve of $80.7 million accrued for defective Chinese drywall, with 890 confirmed homes in Florida.

    Oct 8, 2010