Lennar Reports Third Quarter EPS of $2.12
MIAMI, Sept. 14, 2020 /PRNewswire/ --
-- Net earnings of $666.4 million, or $2.12 per diluted share, compared to
net earnings of $513.4 million, or $1.59 per diluted share - up 30% and
33%, respectively
-- Deliveries of 13,842 homes - up 2%
-- New orders of 15,564 homes - up 16%; new orders dollar value of $6.3
billion - up 20%
-- Backlog of 19,697 homes - up 4%; backlog dollar value of $7.9 billion -
up 4%
-- Revenues of $5.9 billion - consistent with prior year
-- Homebuilding operating margins of $832.0 million, compared to $657.1
million
-- Gross margin on home sales of 23.1%, compared to 20.4%
-- S,G&A expenses as a % of revenues from home sales of 8.0%, compared
to 8.3%
-- Operating margin on home sales of 15.1%, compared to 12.0%
-- Financial Services operating earnings of $135.1 million, compared to
$74.7 million
-- Multifamily operating loss of $5.1 million, compared to operating
earnings of $10.2 million
-- Lennar Other operating earnings of $8.0 million, compared to $15.8
million
-- Homebuilding cash and cash equivalents of $2.0 billion
-- No borrowings under the Company's $2.4 billion revolving credit facility
-- Paid down approximately $400 million of debt during the quarter
-- Homebuilding debt to total capital of 29.5%, compared to 37.1%
Lennar Corporation (NYSE: LEN and LEN.B), one of the nation's leading homebuilders, today reported results for its third quarter ended August 31, 2020. Third quarter net earnings attributable to Lennar in 2020 were $666.4 million, or $2.12 per diluted share, compared to third quarter net earnings attributable to Lennar in 2019 of $513.4 million, or $1.59 per diluted share.
Stuart Miller, Executive Chairman of Lennar, said, "We are pleased to announce our results for the third quarter where we achieved net earnings of $666.4 million, or $2.12 per diluted share, compared to $513.4 million, or $1.59 per diluted share in the prior year. Our third quarter results benefited from robust market conditions combined with the solid execution of our homebuilding and financial services businesses. Fundamentals in the housing market continued to remain strong supported by record low interest rates and a continued undersupply of new and existing inventory. The housing market continued its strong rebound from the significantly weaker sales environment earlier in the year as a result of COVID-19."
Mr. Miller continued, "During the quarter, we used the strength of the homebuilding market to accelerate starts to catch up on production lost earlier in the year. We carefully matched new orders and starts, with a continued focus on cash management which has led to greater returns. In the third quarter, new orders and starts were up 16% and 17%, respectively, over last year. As expected, our new home deliveries, limited by the production pause in the second quarter, increased only 2% over last year, but our gross margin climbed to 23.1%, a 270 basis point increase over the prior year, and our net margin reached an all-time, third quarter high of 15.1%. Additionally, we paid off approximately $400 million of debt during the quarter, had no borrowings under our $2.4 billion revolving credit facility and ended the quarter with $2.0 billion in cash and homebuilding debt to capital ratio of 29.5%, an all-time low."
"Balancing the early year pause with currently robust market conditions, we expect fourth quarter closings of 15,500 - 16,000 homes with gross margins in the 23.25% - 23.5% range. Given strong demand and limited new and existing home inventory, we expect home sales to remain strong for the foreseeable future. As we maintain a balance between sales and deliveries, we expect fourth quarter sales between 13,800 and 14,300 homes."
Rick Beckwitt, Chief Executive Officer of Lennar, said, "New home sales strengthened across the country in all of our major markets during the third quarter. Our sales pace was 4.2 homes per community in the third quarter, compared to 3.4 in the prior year. Our laser-focus on improving our SG&A leverage combined with the benefits of our technology efforts resulted in an SG&A percentage of 8.0%, an all-time, third quarter low. In addition, our financial services business again performed extremely well with third quarter earnings of $135.1 million, an all-time, third quarter high."
Jon Jaffe, President of Lennar, said, "We continued to make significant progress towards becoming a land lighter company by improving our controlled percentage of total homesites by 500 basis points to 35% at the end of the third quarter from 30% in the third quarter last year, while reducing our years owned supply of homesites to 3.8 years from 4.4 at the end of last year's third quarter. Additionally, our intense focus on construction costs helped drive margin, despite our average sales price on homes delivered remaining flat. We continue to be focused on mitigating the impact of limited availability of labor and materials in certain of our markets."
Mr. Miller concluded, "The housing market has proven to be resilient in the current environment and we expect it to continue to be a significant driver in the recovery of the overall economy. With an excellent balance sheet, strong cash flow generation and continued execution of our core operating strategies, we expect to end 2020 with another very strong quarter and be extremely well positioned for an even stronger 2021."
RESULTS OF OPERATIONS
THREE MONTHS ENDED AUGUST 31, 2020 COMPARED TO
THREE MONTHS ENDED AUGUST 31, 2019
Homebuilding
Revenues from home sales increased 3% in the third quarter of 2020 to $5.5 billion from $5.3 billion in the third quarter of 2019. Revenues were higher primarily due to a 2% increase in the number of home deliveries, excluding unconsolidated entities, and a 1% increase in the average sales price of homes delivered. New home deliveries, excluding unconsolidated entities, increased to 13,809 homes in the third quarter of 2020 from 13,513 homes in the third quarter of 2019. The average sales price of homes delivered was $396,000 in the third quarter of 2020, compared to $394,000 in the third quarter of 2019.
Gross margin on home sales were $1.3 billion, or 23.1%, in the third quarter of 2020, compared to $1.1 billion, or 20.4%, in the third quarter of 2019. The gross margin percentage on home sales increased primarily due to the Company's focus on reducing construction costs.
Selling, general and administrative expenses were $435.9 million in the third quarter of 2020, compared to $444.7 million in the third quarter of 2019. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 8.0% in the third quarter of 2020, from 8.3% in the third quarter of 2019 as the Company focused on improving its leverage combined with the benefits of the Company's technology efforts.
Financial Services
Operating earnings for the Financial Services segment were $135.1 million in the third quarter of 2020, compared to $74.7 million ($78.8 million net of noncontrolling interests) in the third quarter of 2019. Operating earnings increased due to an improvement in the mortgage business as a result of an increase in volume and margin. Additionally, operating earnings of the Company's title business increased primarily due to an increase in volume.
Other Ancillary Businesses
Operating loss for the Multifamily segment was $5.1 million in the third quarter of 2020, compared to operating earnings of $10.2 million ($10.5 million net of noncontrolling interests) in the third quarter of 2019, which included the sale of an operating property. Operating earnings for the Lennar Other segment were $8.0 million in the third quarter of 2020, compared to $15.8 million ($15.9 million net of noncontrolling interests) in the third quarter of 2019.
RESULTS OF OPERATIONS
NINE MONTHS ENDED AUGUST 31, 2020 COMPARED TO
NINE MONTHS ENDED AUGUST 31, 2019
Homebuilding
Revenues from home sales increased 3% in the nine months ended August 31, 2020 to $14.5 billion from $14.1 billion in the nine months ended August 31, 2019. Revenues were higher primarily due to a 5% increase in the number of home deliveries, excluding unconsolidated entities. New home deliveries, excluding unconsolidated entities, increased to 36,775 homes in the nine months ended August 31, 2020 from 35,021 homes in the nine months ended August 31, 2019. The average sales price of homes delivered was $395,000 in the nine months ended August 31, 2020, compared to $403,000 in the nine months ended August 31, 2019. The decrease in average sales price primarily resulted from continuing to shift to lower-priced communities and regional product mix due to COVID-19 stay-at-home orders in certain higher priced markets.
Gross margin on home sales were $3.2 billion, or 21.8%, in the nine months ended August 31, 2020, compared to $2.9 billion or 20.2%, in the nine months ended August 31, 2019. The gross margin percentage on home sales increased primarily due to the Company's continued focus on reducing construction costs. Loss on land sales in the nine months ended August 31, 2020 was $21.9 million, primarily due to a write-off of costs in the second quarter of 2020 as a result of Lennar not moving forward with a naval base development in Concord, California, northeast of San Francisco. Gross margin on land sales were $14.9 million in the nine months ended August 31, 2019.
Selling, general and administrative expenses were $1.2 billion in both the nine months ended August 31, 2020 and 2019. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 8.4% in the nine months ended August 31, 2020, from 8.7% in the nine months ended August 31, 2019.
Financial Services
Operating earnings for the Financial Services segment were $329.7 million ($343.8 million net of noncontrolling interests) in the nine months ended August 31, 2020, compared to $149.9 million ($163.0 million net of noncontrolling interests) in the nine months ended August 31, 2019. Operating earnings increased due to an improvement in the mortgage and title businesses as a result of an increase in volume and margin, as well as reductions in loan origination costs. Additionally, in the second quarter of 2020, the Financial Services segment recorded a $61.4 million gain on the deconsolidation of a previously consolidated entity.
Other Ancillary Businesses
Operating loss for the Multifamily segment was $4.0 million in the nine months ended August 31, 2020, compared to operating earnings of $12.7 million ($13.4 million net of noncontrolling interests) in the nine months ended August 31, 2019. Operating loss for the Lennar Other segment was $9.1 million in the nine months ended August 31, 2020, compared to operating earnings of $20.7 million ($21.2 million net of noncontrolling interests) in the nine months ended August 31, 2019.
Tax Rate
For the nine months ended August 31, 2020 and 2019, the Company had a tax provision of $382.5 million and $374.7 million, respectively, which resulted in an overall effective income tax rate of 19.5% and 24.2%, respectively. The reduction in the overall effective income tax rate is primarily due to the extension of the new energy efficient home tax credit during the first quarter of 2020.
Liquidity
At August 31, 2020, the Company had $2.0 billion of Homebuilding cash and cash equivalents and no outstanding borrowings under its $2.4 billion revolving credit facility, thereby providing $4.4 billion of available capacity.
Fourth Quarter 2020 Guidance
The following are the Company's expected results of its homebuilding and financial services activities during the fourth quarter of fiscal year 2020:
New Orders
13,800 - 14,300
Deliveries
15,500 - 16,000
Average Sales Price $390,000
Gross Margin % on Home
Sales 23.25% - 23.5%
S,G&A as a % of Home Sales 7.7% - 7.8%
Financial Services
Operating Earnings
$100 - $105 million
About Lennar
Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations. Lennar builds affordable, move-up and active adult homes primarily under the Lennar brand name. Lennar's Financial Services segment provides mortgage financing, title and closing services primarily for buyers of Lennar's homes and, through LMF Commercial, originates mortgage loans secured primarily by commercial real estate properties throughout the United States. Lennar's Multifamily segment is a nationwide developer of high-quality multifamily rental properties. LEN(X), formerly known as Lennar Ventures, drives the Lennar's technology, innovation and strategic investments. For more information about Lennar, please visit www.lennar.com.
Note Regarding Forward-Looking Statements: Some of the statements in this press release are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995, including statements relating to the homebuilding market and other markets in which we participate. You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those anticipated by the forward-looking statements. Important factors that could cause such differences include the potential negative impact to our business of the ongoing coronavirus (COVID-19) pandemic, the duration, impact and severity of which is highly uncertain; slowdowns in real estate markets in regions where we have significant Homebuilding or Multifamily development activities; increases in operating costs, including costs related to construction materials, labor, real estate taxes and insurance, which exceed our ability to increase prices, both in our Homebuilding and Multifamily businesses; reduced availability of mortgage financing or increased interest rates; decreased demand for our homes or Multifamily rental apartments; natural disasters or catastrophic events for which our insurance may not provide adequate coverage; our inability to successfully execute our strategies, including our land lighter strategy; a decline in the value of the land and home inventories we maintain and resulting possible future writedowns of the carrying value of our real estate assets; unfavorable losses in legal proceedings; conditions in the capital, credit and financial markets; changes in laws, regulations or the regulatory environment affecting our business, and the risks described in our filings with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended November 30, 2019. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
A conference call to discuss the Company's third quarter earnings will be held at 11:00 a.m. Eastern Time on Tuesday, September 15, 2020. The call will be broadcast live on the Internet and can be accessed through the Company's website at www.lennar.com. If you are unable to participate in the conference call, the call will be archived at www.lennar.com for 90 days. A replay of the conference call will also be available later that day by calling 203-369-3064 and entering 5723593 as the confirmation number.
LENNAR CORPORATION AND SUBSIDIARIES
Selected Revenues and Operating Information
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
August 31, August 31,
2020 2019 2020 2019
Revenues:
Homebuilding $
5,505,120 5,438,998 14,626,720 14,258,318
Financial Services 237,068 224,502 631,992 572,029
Multifamily 115,170 183,958 370,904 428,764
Lennar Other 12,896 9,600 33,348 28,919
Total revenues $
5,870,254 5,857,058 15,662,964 15,288,030
Homebuilding operating earnings $
813,744 658,982 1,905,503 1,610,366
Financial Services operating earnings 135,079 74,698 329,722 149,887
Multifamily operating earnings (loss) (5,148) 10,225 (4,001) 12,700
Lennar Other operating earnings (loss) 7,999 15,793 (9,123) 20,724
Corporate general and administrative expenses (92,661) (92,615) (262,959) (248,071)
---
Earnings before income taxes 859,013 667,083 1,959,142 1,545,606
Provision for income taxes (189,690) (154,440) (382,498) (374,670)
---
Net earnings (including net earnings (loss) attributable to noncontrolling interests) 669,323 512,643 1,576,644 1,170,936
Less: Net earnings (loss) attributable to noncontrolling 2,905 (723) (5,632) (3,812)
interests
---
Net earnings attributable to Lennar $
666,418 513,366 1,582,276 1,174,748
Average shares outstanding:
Basic 308,889 318,103 309,492 319,924
===
Diluted 308,890 318,104 309,493 319,927
===
Earnings per share:
Basic $
2.13 1.60 5.05 3.64
Diluted $
2.12 1.59 5.03 3.63
Supplemental information:
Interest incurred (1) $
88,149 108,401 272,347 320,960
EBIT (2):
Net earnings attributable to Lennar $
666,418 513,366 1,582,276 1,174,748
Provision for income taxes 189,690 154,440 382,498 374,670
Interest expense included in:
Costs of homes sold 93,124 97,961 247,644 255,434
Costs of land sold 1,035 3,581 1,567 4,531
Homebuilding other expense, net 5,478 5,636 17,155 11,511
---
Total interest expense 99,637 107,178 266,367 271,476
---
EBIT $
955,745 774,984 2,231,141 1,820,894
(1) Amount represents interest
incurred related to homebuilding
debt.
(2) EBIT is a non-GAAP financial
measure defined as earnings
before interest and taxes. This
financial measure has been
presented because the Company
finds it important and useful in
evaluating its performance and
believes that it helps readers of
the Company's financial
statements compare its operations
with those of its competitors.
Although management finds EBIT to
be an important measure in
conducting and evaluating the
Company's operations, this
measure has limitations as an
analytical tool as it is not
reflective of the actual
profitability generated by the
Company during the period.
Management compensates for the
limitations of using EBIT by
using this non-GAAP measure only
to supplement the Company's GAAP
results. Due to the limitations
discussed, EBIT should not be
viewed in isolation, as it is not
a substitute for GAAP measures.
LENNAR CORPORATION AND SUBSIDIARIES
Segment Information
(In thousands)
(unaudited)
Three Months Ended Nine Months Ended
August 31, August 31,
2020 2019 2020 2019
Homebuilding revenues:
Sales of homes $
5,467,364 5,330,694 14,114,939
14,533,212
Sales of land 34,323 104,338 81,023 134,576
Other homebuilding 3,433 3,966 12,485 8,803
Total homebuilding revenues 5,505,120 5,438,998 14,626,720 14,258,318
Homebuilding costs and expenses:
Costs of homes sold 4,204,814 4,245,061 11,359,364 11,264,640
Costs of land sold 32,395 92,151 102,899 119,685
Selling, general and administrative 435,949 444,720 1,222,032 1,223,701
Total homebuilding costs and expenses 4,673,158 4,781,932 12,684,295 12,608,026
Homebuilding operating margins 831,962 657,066 1,942,425 1,650,292
Homebuilding equity in loss from unconsolidated entities (6,431) (10,459) (20,077) (4,601)
Homebuilding other income (expense), net (11,787) 12,375 (16,845) (35,325)
Homebuilding operating earnings $
813,744 658,982 1,610,366
1,905,503
Financial Services revenues $
237,068 224,502 572,029
631,992
Financial Services costs and expenses 101,989 149,804 363,688 422,142
Financial Services gain on deconsolidation 61,418 -
Financial Services operating earnings $
135,079 74,698 149,887
329,722
Multifamily revenues $
115,170 183,958 428,764
370,904
Multifamily costs and expenses 118,786 181,616 379,607 431,510
Multifamily equity in earnings (loss) from unconsolidated entities and other
gain (1,532) 7,883 4,702 15,446
Multifamily operating earnings (loss) $
(5,148) 10,225 12,700
(4,001)
Lennar Other revenues $
12,896 9,600 28,919
33,348
Lennar Other costs and expenses 2,062 2,734 3,564 7,550
Lennar Other equity in earnings (loss) from unconsolidated entities (2,189) 8,903 (28,712) 12,255
Lennar Other income (expense), net (646) 24 (10,195) (12,900)
Lennar Other operating earnings (loss) $
7,999 15,793 20,724
(9,123)
LENNAR CORPORATION AND SUBSIDIARIES
Summary of Deliveries, New Orders and Backlog
(Dollars in thousands, except average sales
price)
(unaudited)
Lennar's reportable homebuilding segments and all
other homebuilding operations not required to be
reported separately have divisions located in:
East: Florida, New Jersey, Pennsylvania and South
Carolina
Central: Georgia, Illinois, Indiana, Maryland,
Minnesota, North Carolina, Tennessee and
Virginia
Texas: Texas
West: Arizona, California, Colorado, Nevada,
Oregon, Utah and Washington
Other: Urban divisions
For the Three Months Ended August 31,
2020 2019 2020 2019 2020 2019
Deliveries: Homes
Dollar Value Average Sales Price
East 4,309 4,521 $
1,488,022 1,502,780 $
345,000 332,000
Central 2,767 2,809 1,062,799 1,054,715 384,000 375,000
Texas 2,598 2,260 719,467 696,904 277,000 308,000
West 4,165 3,908 2,205,235 2,060,740 529,000 527,000
Other 3 24 2,590 18,280 863,000 762,000
Total 13,842 13,522 $
5,478,113 5,333,419 $
396,000 394,000
Of the total homes delivered listed above, 33 homes with a dollar value of $10.7 million and an average sales price of $326,000 represent home deliveries from unconsolidated entities for the three months ended August 31, 2020, compared to nine home deliveries with a dollar value of $2.7 million and an average sales
price of $303,000 for the three months ended August 31, 2019.
At August 31,
For the Three Months Ended August 31,
2020 2019 2020 2019 2020 2019 2020 2019
---
New Orders: Active Communities Homes
Dollar Value Average Sales Price
East 340 361 4,655 4,530 $
1,631,349 1,462,210 $
350,000 323,000
Central 297 338 3,375 2,632 1,298,792 1,003,818 385,000 381,000
Texas 217 235 2,746 2,221 743,553 660,304 271,000 297,000
West 341 362 4,786 3,949 2,580,328 2,049,404 539,000 519,000
Other 3 4 2 37 1,452 33,896 726,000 916,000
Total 1,198 1,300 15,564 13,369 $
6,255,474 5,209,632 $
402,000 390,000
Of the total new orders listed above, 34 homes with a dollar value of $9.7 million and an average sales price of $286,000 represent new orders in four active communities from unconsolidated entities for the three months ended August 31, 2020, compared to 21 new orders with a dollar value of $7.3 million and an average
sales price of $349,000 in five active communities for the three months ended August 31, 2019.
For the Nine Months Ended August 31,
2020 2019 2020 2019 2020 2019
Deliveries: Homes
Dollar Value Average Sales Price
East 11,511 11,502 $
3,924,289 3,838,124 $
341,000 334,000
Central 7,389 7,193 2,833,745 2,723,291 384,000 379,000
Texas 6,637 5,660 1,877,374 1,796,344 283,000 317,000
West 11,273 10,667 5,894,183 5,738,881 523,000 538,000
Other 25 49 23,642 43,312 946,000 884,000
Total 36,835 35,071 $
14,553,233 14,139,952 $
395,000 403,000
Of the total homes delivered listed above, 60 homes with a dollar value of $20.0 million and an average sales price of $334,000 represent home deliveries from unconsolidated entities for the nine months ended August 31, 2020, compared to 50 home deliveries with a dollar value of $25.0 million and an average sales price
of $500,000 for the nine months ended August 31, 2019.
For the Nine Months Ended August 31,
2020 2019 2020 2019 2020 2019
New Orders: Homes
Dollar Value Average Sales Price
East 12,512 12,756 $
4,266,221 4,242,708 $
341,000 333,000
Central 8,741 7,974 3,341,959 3,020,328 382,000 379,000
Texas 7,327 6,069 1,986,770 1,861,849 271,000 307,000
West 12,359 11,481 6,508,509 5,977,758 527,000 521,000
Other 16 70 15,189 60,447 949,000 864,000
Total 40,955 38,350 $
16,118,648 15,163,090 $
394,000 395,000
Of the total new orders listed above, 85 homes with a dollar value of $26.8 million and an average sales price of $316,000 represent new orders from unconsolidated entities for the nine months ended August 31, 2020, compared to 68 new orders with a dollar value of $32.1 million and an average sales price of $472,000
for the nine months ended August 31, 2019.
August 31,
2020 2019 2020 2019 2020 2019
Backlog: Homes
Dollar Value Average Sales Price
East (1) 6,691 6,999 $
2,368,300 2,419,795 $
354,000 346,000
Central 4,502 4,110 1,752,180 1,597,944 389,000 389,000
Texas 2,860 2,557 822,734 826,226 288,000 323,000
West 5,644 5,215 2,922,743 2,726,329 518,000 523,000
Other 27 26,123 968,000
Total 19,697 18,908 $
7,865,957 7,596,417 $
399,000 402,000
Of the total homes in backlog listed above, 56 homes with a backlog dollar value of $17.0 million and an average sales price of $303,000 represent the backlog from unconsolidated entities at August 31, 2020, compared to 25 homes with a backlog dollar value of $9.8 million and an average sales price of $391,000 at
August 31, 2019.
(1) During the nine months ended August 31, 2019, the Company acquired 13 homes in backlog.
LENNAR CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
(unaudited)
August 31, November 30,
2020 2019
ASSETS
Homebuilding:
Cash and cash
equivalents $
1,966,796 1,200,832
Restricted cash 11,959 9,698
Receivables, net 295,958 329,124
Inventories:
Finished homes and
construction in
progress 9,288,624 9,195,721
Land and land under
development 7,987,149 8,267,647
Consolidated inventory
not owned 395,489 313,139
Total inventories 17,671,262 17,776,507
Investments in
unconsolidated entities 940,695 1,009,035
Goodwill 3,442,359 3,442,359
Other assets 1,137,137 1,021,684
25,466,166 24,789,239
Financial Services 2,209,549 3,006,024
Multifamily 1,184,086 1,068,831
Lennar Other 455,484 495,417
Total assets $
29,315,285 29,359,511
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable $
1,140,341 1,069,179
Liabilities related to
consolidated inventory
not owned 324,544 260,266
Senior notes and other
debts payable, net 7,180,274 7,776,638
Other liabilities 1,944,247 1,900,955
10,589,406 11,007,038
Financial Services 1,197,847 2,056,450
Multifamily 236,059 232,155
Lennar Other 11,628 30,038
Total liabilities 12,034,940 13,325,681
Stockholders' equity:
Preferred stock -
Class A common stock of
$0.10 par value 29,894 29,712
Class B common stock of
$0.10 par value 3,944 3,944
Additional paid-in
capital 8,654,954 8,578,219
Retained earnings 9,760,165 8,295,001
Treasury stock (1,276,691) (957,857)
Accumulated other
comprehensive income
(loss) (163) 498
Total stockholders'
equity 17,172,103 15,949,517
Noncontrolling interests 108,242 84,313
Total equity 17,280,345 16,033,830
Total liabilities and
equity $
29,315,285 29,359,511
LENNAR CORPORATION AND SUBSIDIARIES
Supplemental Data
(Dollars in thousands)
(unaudited)
August 31, November 30, August 31,
2020 2019 2019
Homebuilding debt $
7,180,274 7,776,638 9,075,016
Stockholders' equity 17,172,103 15,949,517 15,371,938
Total capital $
24,352,377 23,726,155 24,446,954
---
Homebuilding debt to total capital 29.5% 32.8% 37.1%
Homebuilding debt $
7,180,274 7,776,638 9,075,016
Less: Homebuilding cash and cash equivalents 1,966,796 1,200,832 795,405
Net homebuilding debt $
5,213,478 6,575,806 8,279,611
---
Net homebuilding debt to total capital (1) 23.3% 29.2% 35.0%
(1) Net homebuilding debt to total
capital is a non-GAAP financial
measure defined as net
homebuilding debt (homebuilding
debt less homebuilding cash and
cash equivalents) divided by total
capital (net homebuilding debt
plus stockholders' equity). The
Company believes the ratio of net
homebuilding debt to total capital
is a relevant and a useful
financial measure to investors in
understanding the leverage
employed in homebuilding
operations. However, because net
homebuilding debt to total capital
is not calculated in accordance
with GAAP, this financial measure
should not be considered in
isolation or as an alternative to
financial measures prescribed by
GAAP. Rather, this non-GAAP
financial measure should be used
to supplement the Company's GAAP
results.
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SOURCE Lennar Corporation
