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Lennar Corporation, founded in 1954, is one of the nation's largest builders of quality homes for all generations. The company builds affordable, move-up and retirement homes primarily under the Lennar brand name. Lennar entities include Financial Services, Rialto Investments, Multifamily and Commercial segments.

Lennar's core principles of Quality, Value and Integrity is the underlying foundation upon which we were built. When we care for our company, our customers and our associates, we know that our shareholders receive the best results.

Lennar Corporation (LEN)

$43.48  -0.2 (0.46%)

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Allison Bober

700 N.W. 107th Avenue
Miami, Florida 33172
305-559-4000 - Phone
305-229-6452 - Fax

Allison.Bober@lennar.com

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    Lennar Reports Fourth Quarter EPS of $0.16

    MIAMI, Jan. 11, 2012 /PRNewswire/ --

    2011 Fourth Quarter

    • Revenues of $952.7 million – up 11%
    • Net earnings of $30.3 million, or $0.16 per diluted share, compared to $32.0 million, or $0.17 per diluted share
    • Lennar Homebuilding operating earnings of $25.2 million, compared to $27.0 million
    • Gross margin on home sales:
      • 21.6% (excluding valuation adjustments of $17.9 million) - improved 80 basis points
      • 19.4% (including valuation adjustments) - improved 170 basis points
    • S,G&A expenses as a % of revenues from home sales of 13.8%, improved 30 basis points
    • Operating margin on home sales:
      • 7.8% (excluding valuation adjustments of $17.9 million) - improved 110 basis points
      • 5.6% (including valuation adjustments) - improved 190 basis points
    • Lennar Financial Services operating earnings of $9.1 million, compared to $11.7 million
    • Rialto Investments operating earnings totaled $8.0 million (including $2.0 million of net loss attributable to noncontrolling interests), compared to $12.4 million (net of $12.7 million of net earnings attributable to noncontrolling interests)
    • Rialto Investments operating earnings include mark-to-market unrealized losses of $7.6 million related to the AB PPIP fund, compared to mark-to-market unrealized gains of $4.7 million in Q4 2010.
    • Deliveries of 3,375 homes – up 9%
    • New orders of 3,027 homes – up 20%
    • Cancellation rate of 20%
    • Backlog of 2,171 homes – up 35%
    • Lennar Homebuilding cash and cash equivalents of $1.0 billion
    • Lennar Homebuilding debt to total capital, net of cash and cash equivalents, of 46.4%

    2011 Fiscal Year

    • Revenues of $3.1 billion – up 1%
    • Net earnings of $92.2 million, or $0.48 per diluted share, compared to $95.3 million, or $0.51 per diluted share
    • Deliveries of 10,845 homes –down 1%
    • New orders of 11,412 homes – up 4%

    Lennar Corporation (NYSE: LEN and LEN.B), one of the nation's largest homebuilders, today reported results for its fourth quarter and fiscal year ended November 30, 2011. Fourth quarter net earnings attributable to Lennar in 2011 were $30.3 million, or $0.16 per diluted share, compared to fourth quarter net earnings attributable to Lennar in 2010 of $32.0 million, or $0.17 per diluted share. Net earnings attributable to Lennar for the year ended November 30, 2011 were $92.2 million, or $0.48 per diluted share, compared to net earnings attributable to Lennar for the year ended November 30, 2010 of $95.3 million, or $0.51 per diluted share.

    Stuart Miller, Chief Executive Officer of Lennar Corporation, said, "We are pleased to report EPS of $0.16 for our fourth fiscal quarter of 2011, making this our seventh consecutive quarter of profitability. Despite operating in a challenging real estate market, we achieved profitability in all of our business segments."

    "During the quarter, we continued to manage our homebuilding business carefully with tight controls over our costs and a focus on improving our gross margins. We benefited greatly from our strategic capital investments in new higher margin communities, which helped us produce a 21.6% gross margin, excluding valuation adjustments, in the fourth quarter."

    Mr. Miller continued, "As we come to the end of 2011 and head into 2012, we have seen the market start to stabilize, driven by a combination of low home prices and low interest rates, making the decision to purchase a new home more attractive, compared to the heated rental market. These factors are reflected in our new orders and sales backlog, which increased 20% and 35%, respectively, from the prior year quarter."

    "On the Rialto side of our business, our first real estate fund successfully raised $700 million and is now contributing management fees and investment income to our bottom line results. We continue to see significant opportunities to invest in distressed assets for our Rialto business."

    Mr. Miller concluded, "Our balance sheet strength will allow us to capitalize on future opportunities as they present themselves, and we believe that our Homebuilding and Rialto segments are well positioned to lead the way to a third consecutive profitable year in 2012."

    RESULTS OF OPERATIONS

    THREE MONTHS ENDED NOVEMBER 30, 2011 COMPARED TO
    THREE MONTHS ENDED NOVEMBER 30, 2010

    Lennar Homebuilding
    Revenues from home sales increased 13% in the fourth quarter of 2011 to $816.5 million from $725.8 million in the fourth quarter of 2010. Revenues were higher primarily due to a 10% increase in the number of home deliveries, excluding unconsolidated entities and a 2% increase in the average sales price of homes delivered. New home deliveries, excluding unconsolidated entities, increased to 3,359 homes in the fourth quarter of 2011 from 3,060 homes last year. The average sales price of homes delivered increased to $243,000 in the fourth quarter of 2011 from $238,000 in the same period last year. Sales incentives offered to homebuyers were $33,900 per home delivered in the fourth quarter of 2011, or 12.2% as a percentage of home sales revenue, compared to $33,700 per home delivered in the fourth quarter of 2010, or 12.4% as a percentage of home sales revenue. 

    Gross margins on home sales were $158.4 million, or 19.4%, in the fourth quarter of 2011, which included $17.9 million of valuation adjustments, compared to gross margins on home sales of $128.7 million, or 17.7%, in the fourth quarter of 2010, which included $22.3 million of valuation adjustments. Gross margin percentage on home sales improved compared to last year primarily due to a reduction in valuation adjustments.

    Gross profits on land sales totaled $0.8 million in the fourth quarter of 2011, net of $0.4 million of write-offs of deposits and pre-acquisition costs, compared to gross profits on land sales of $13.7 million in the fourth quarter of 2010, which included a $14.1 million reduction of an obligation related to a profit participation agreement, partially offset by $3.1 million in write-offs of deposits and pre-acquisition costs.

    Selling, general and administrative expenses were $112.5 million and $102.0 million, respectively, in the fourth quarter of 2011 and 2010.  Selling, general and administrative expenses as a percentage of revenues from home sales improved 30 basis points to 13.8% in the fourth quarter of 2011, compared to 14.1% in the fourth quarter of 2010.

    Lennar Homebuilding equity in loss from unconsolidated entities was $69.2 million in the fourth quarter of 2011, which primarily included the Company's share of valuation adjustments of $57.6 million related to an asset distribution from a Lennar Homebuilding unconsolidated entity as the result of a linked transaction. This was offset by a pre-tax gain of $62.3 million included in Lennar Homebuilding other income, net, related to that unconsolidated entity's net asset distribution. The transaction resulted in a net pre-tax gain of $4.7 million. Lennar Homebuilding equity in loss from unconsolidated entities was $1.7 million in the fourth quarter of 2010.

    Lennar Homebuilding other income, net, totaled $69.7 million in the fourth quarter of 2011, which included the $62.3 million pre-tax gain discussed above. Lennar Homebuilding other income, net, totaled $4.9 million in the fourth quarter of 2010, net of $1.2 million of valuation adjustments to the Company's investments in unconsolidated entities.

    Homebuilding interest expense was $43.2 million in the fourth quarter of 2011 ($20.9 million was included in cost of homes sold, $0.3 million in cost of land sold and $22.0 million in other interest expense), compared to $36.9 million in the fourth quarter of 2010 ($19.7 million was included in cost of homes sold, $0.6 million in cost of land sold and $16.6 million in other interest expense). Interest expense increased primarily due to an increase in the Company's outstanding debt compared to the same period last year.

    Lennar Financial Services
    Operating earnings for the Lennar Financial Services segment was $9.1 million in the fourth quarter of 2011, compared to operating earnings of $11.7 million in the same period last year. The decrease in profitability was due primarily to decreased volume in the segment's mortgage operations.

    Rialto Investments
    In the fourth quarter of 2011, operating earnings for the Rialto Investments segment were $6.0 million (net of $2.0 million of net loss attributable to noncontrolling interests), compared to operating earnings of $25.1 million (which included $12.7 million of net earnings attributable to noncontrolling interests) in the same period last year. In the fourth quarter of 2011, revenues in this segment were $46.5 million, which consisted primarily of accretable interest income associated with the segment's portfolio of real estate loans and fees for managing and servicing assets, compared to revenues of $19.7 million in the same period last year, which consisted primarily of accretable interest income associated with the segment's portfolio of real estate loans. In the fourth quarter of 2011, Rialto Investments other income, net, was $0.9 million, which consisted primarily of gains from acquisition of real estate owned through foreclosure as well as gains from real estate sales, offset by expenses related to owning and maintaining real estate owned assets. In the fourth quarter of 2010, Rialto Investments other income, net, was $17.3 million, which consisted primarily of gains from acquisition of real estate owned through foreclosure as well as gains from real estate sales.

    The segment also had equity in earnings (loss) from unconsolidated entities of ($3.0) million in the fourth quarter of 2011, consisting primarily of $7.6 million of unrealized losses related to the Company's share of the mark-to-market adjustments of the investment portfolio underlying the AllianceBernstein L.P. ("AB") fund formed under the Federal government's Public-Private Investment Program ("PPIP"), partially offset by interest income earned by the AB PPIP fund and equity in earnings related to the Rialto Investments Real Estate Fund. This compares to equity in earnings (loss) from unconsolidated entities of $9.0 million in the same period last year, which included $4.7 million of unrealized gains related to the Company's share of the mark-to-market adjustments of AB PPIP investments. In the fourth quarter of 2011, expenses in this segment were $38.4 million, which consisted primarily of costs related to its portfolio operations, due diligence expenses related to both completed and abandoned transactions, and other general and administrative expenses, compared to expenses of $20.8 million in the same period last year.

    Corporate General and Administrative Expenses
    Corporate general and administrative expenses were $28.5 million, or 3.0% as a percentage of total revenues, in the fourth quarter of 2011, compared to $25.1 million, or 2.9% as a percentage of total revenues, in the fourth quarter of 2010.

    Noncontrolling Interests
    Net earnings (loss) attributable to noncontrolling interests were ($4.8) million and $10.5 million, respectively, in the fourth quarter of 2011 and 2010. Net loss attributable to noncontrolling interests during the fourth quarter of 2011 was attributable to noncontrolling interests related to the Company's homebuilding and Rialto Investments operations. Net earnings attributable to noncontrolling interests during the fourth quarter of 2010 was primarily related to net earnings attributable to the FDIC's interest in the portfolio of real estate loans that the Company acquired in partnership with the FDIC, partially offset by net loss attributable to noncontrolling interests related to the Company's homebuilding operations.

    Change in Reportable Segments

    The Company has disaggregated its Southeast Florida homebuilding division from its Homebuilding East reportable segment and has presented Homebuilding Southeast Florida as a separate reportable segment due to the division currently achieving one of the quantitative thresholds set forth in Accounting Standard Codification Topic 280, Segment Reporting, ("ASC 280"). In addition, the Company reclassified the homebuilding activities in the states of Georgia, North Carolina and South Carolina from Homebuilding Other to the Homebuilding East reportable segment because these states currently meet the reportable segment aggregation criteria in ASC 280. All prior year segment information has been restated to conform to the quarterly and fiscal year 2011 presentation, and have no effect on the Company's consolidated financial position, results of operations or cash flows for such periods.

    Debt Transactions
    In October 2011, the Company retired the remaining $113.2 million of its 5.95% senior notes due October 2011 for 100% of the outstanding principal amount plus accrued and unpaid interest as of the maturity date. In November 2011, the Company issued $350 million of 3.25% convertible senior notes due 2021 in a private offering under SEC Rule 144A. Subsequent to November 30, 2011, the Company issued an additional $50.0 million of the 3.25% convertible senior notes due 2021 to cover over-allotments.

    YEAR ENDED NOVEMBER 30, 2011 COMPARED TO
    YEAR ENDED NOVEMBER 30, 2010

    Lennar Homebuilding
    For both the years ended November 30, 2011 and 2010, revenues from home sales were $2.6 billion. There was a 1% increase in the average sales price of homes delivered, offset by a 1% decrease in the number of home deliveries, excluding unconsolidated entities. New home deliveries, excluding unconsolidated entities, decreased to 10,746 homes in the year ended November 30, 2011 from 10,859 homes last year. The average sales price of homes delivered increased to $244,000 in the year ended November 30, 2011 from $243,000 in the same period last year. Sales incentives offered to homebuyers were $33,700 per home delivered in the year ended November 30, 2011, or 12.1% as a percentage of home sales revenue, compared to $32,800 per home delivered in the same period last year, or 11.9% as a percentage of home sales revenue.

    Gross margins on home sales were $523.4 million, or 19.9%, in the year ended November 30, 2011, which included $35.7 million of valuation adjustments, compared to gross margins on home sales of $517.9 million, or 19.7%, in the year ended November 30, 2010, which included $44.7 million of valuation adjustments.

    Gross profits on land sales totaled $7.7 million in the year ended November 30, 2011, net of $0.5 million of valuation adjustments and $1.8 million in write-offs of deposits and pre-acquisition costs, compared to gross profits on land sales of $21.4 million in the year ended November 30, 2010, primarily due to a $14.1 million reduction of an obligation related to a profit participation agreement. Gross profits on land sales for the year ended November 30, 2010 were net of $3.4 million valuation adjustments and $3.1 million in write-offs of deposits and pre-acquisition costs.

    Selling, general and administrative expenses were $384.8 million in the year ended November 30, 2011, which included $8.4 million related to expenses associated with remedying pre-existing liabilities of a previously acquired company, offset by $8.0 million related to the receipt of a settlement discussed below. Selling, general and administrative expenses were $377.0 million in the year ended November 30, 2010. Selling, general and administrative expenses as a percentage of revenues from home sales increased to 14.7% in the year ended November 30, 2011, from 14.3% in 2010.

    Lennar Homebuilding equity in loss from unconsolidated entities was $62.7 million in the year ended November 30, 2011, which primarily included the Company's share of valuation adjustments of $57.6 million related to an asset distribution from a Lennar Homebuilding unconsolidated entity as the result of a linked transaction. This was offset by a pre-tax gain of $62.3 million included in Lennar Homebuilding other income, net, related to that unconsolidated entity's net asset distribution. The transaction resulted in a net pre-tax gain of $4.7 million. In addition, Lennar Homebuilding equity in loss from unconsolidated entities included $8.9 million of valuation adjustments related to assets of Lennar Homebuilding's unconsolidated entities, offset by the Company's share of a gain on debt extinguishment at one of Lennar Homebuilding's unconsolidated entities totaling $15.4 million. In the year ended November 30, 2010, Lennar Homebuilding equity in loss from unconsolidated entities was $11.0 million, which included $10.5 million of valuation adjustments related to assets of Lennar Homebuilding unconsolidated entities, partially offset by a net pre-tax gain of $7.7 million as a result of a transaction by one of Lennar Homebuilding's unconsolidated entities.

    Lennar Homebuilding other income, net, totaled $116.1 million in the year ended November 30, 2011, which included the $62.3 million pre-tax gain discussed above and $29.5 million related to the receipt of a settlement. The parties to certain litigation in which the Company was plaintiff entered into a settlement agreement in which they agreed the Company may make the following statement: "Lennar recently settled litigation against a third party in connection with Lennar's ongoing dispute with Nicolas Marsch, III and his affiliates. As a result of the settlement, the third party paid Lennar total cash consideration of $37.5 million and that the terms are confidential." Lennar Homebuilding other income, net, in the year ended November 30, 2011 also included $5.1 million related to the favorable resolution of a joint venture and the recognition of $10.0 million of deferred management fees related to management services previously performed for one of Lennar Homebuilding's unconsolidated entities. These amounts were partially offset by $10.5 million of valuation adjustments to the Company's investments in Lennar Homebuilding's unconsolidated entities. In the year ended November 30, 2010, Lennar Homebuilding other income, net, was $19.1 million, which included a $19.4 million pre-tax gain on the extinguishment of other debt and other income, partially offset by a pre-tax loss of $10.8 million related to the repurchase of senior notes through a tender offer.

    Homebuilding interest expense was $163.0 million in the year ended November 30, 2011 ($70.7 million was included in cost of homes sold, $1.6 million in cost of land sold and $90.7 million in other interest expense), compared to $143.9 million in the year ended November 30, 2010 ($71.5 million was included in cost of homes sold, $2.0 million in cost of land sold and $70.4 million in other interest expense). Interest expense increased primarily due to an increase in the Company's outstanding debt compared to the same period last year.

    Lennar Financial Services
    Operating earnings for the Lennar Financial Services segment were $20.7 million in the year ended November 30, 2011, compared to operating earnings of $31.3 million in the same period last year. The decrease in profitability was due primarily to decreased volume in the segment's mortgage operations. In addition, in the year ended November 30, 2010, the Lennar Financial Services segment received $5.1 million of proceeds from the previous sale of a cable system.

    Rialto Investments
    In the year ended November 30, 2011, operating earnings for the Rialto Investments segment were $63.5 million (which included $28.9 million of net earnings attributable to noncontrolling interests), compared to operating earnings of $57.3 million (which included $33.2 million of net earnings attributable to noncontrolling interests) in the same period last year. In the year ended November 30, 2011, revenues in this segment were $164.7 million, which consisted primarily of accretable interest income associated with the segment's portfolio of real estate loans and fees for managing and servicing assets, compared to revenues of $92.6 million in the same period last year. In the year ended November 30, 2011, Rialto Investments other income, net, was $39.2 million, which consisted primarily of gains from acquisition of real estate owned through foreclosure, as well as gains from real estate sales, partially offset by expenses related to owning and maintaining those assets, and a $4.7 million gain on the sale of investment securities. In the year ended November 30, 2010, Rialto Investments other income, net, was $17.3 million, which consisted primarily of gains from acquisition of real estate owned through foreclosure as well as gains from real estate sales.

    The segment also had equity in earnings (loss) from unconsolidated entities of ($7.9) million in the year ended November 30, 2011, consisting primarily of $21.4 million of unrealized losses related to the Company's share of the mark-to-market adjustments of the investment portfolio underlying the AB PPIP fund, partially offset by interest income earned by the AB PPIP fund and equity in earnings related to the Rialto Investments Real Estate Fund.  This compares to equity in earnings (loss) from unconsolidated entities of $15.4 million in the same period last year, which included $9.3 million of unrealized gains related to the Company's share of the mark-to-market adjustments of AB PPIP investments. In the year ended November 30, 2011, expenses in this segment were $132.6 million, which consisted primarily of costs related to its portfolio operations, due diligence expenses related to both completed and abandoned transactions, and other general and administrative expenses, compared to expenses of $67.9 million in the same period last year.

    Corporate General and Administrative Expenses
    Corporate general and administrative expenses were $95.3 million, or 3.1% as a percentage of total revenues, in the year ended November 30, 2011, compared to $93.9 million, or 3.1% as a percentage of total revenues, in the year ended November 30, 2010.

    Noncontrolling Interests
    Net earnings (loss) attributable to noncontrolling interests were $20.3 million and $25.2 million, respectively, in the year ended November 30, 2011 and 2010. Net earnings attributable to noncontrolling interests during both the years ended November 30, 2011 and 2010 were primarily related to the FDIC's interest in the portfolio of real estate loans that the Company acquired in partnership with the FDIC.

    Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations. The Company builds affordable, move-up and retirement homes primarily under the Lennar brand name. Lennar's Financial Services segment provides primarily mortgage financing, title insurance and closing services for both buyers of the Company's homes and others.  Lennar's Rialto Investments segment is focused on distressed real estate asset investments, asset management and workout strategies. Previous press releases and further information about the Company may be obtained at the "Investor Relations" section of the Company's website, www.lennar.com.

     

    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.  These forward-looking statements include statements regarding our business, financial condition, results of operations, cash flows, strategies and prospects.  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.  Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.  Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements.  These factors include those described under the caption "Risk Factors" in Item 1A of our Annual Report on Form 10-K for our fiscal year ended November 30, 2010.  We do not undertake any obligation to update forward-looking statements, except as required by Federal securities laws.

     

    A conference call to discuss the Company's fourth quarter earnings will be held at 11:00 a.m. Eastern Time on Wednesday, January 11, 2012.  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 203-369-3765 and entering 5723593 as the confirmation number.

     

     

     

     

     

     

     

     

     

     

     

    LENNAR CORPORATION AND SUBSIDIARIES

     

     

     

     

     

     

     

     

     

     

     

     

    Selected Revenues and Operational Information

    (In thousands, except per share amounts)

    (unaudited)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Three Months Ended

     

    Years Ended

     

     

     

     

    November 30,

     

    November 30,

     

     

     

     

    2011

     

    2010

     

    2011

     

    2010

     

     

     

     

     

     

     

     

     

     

     

     

    Revenues:

     

     

     

     

     

     

     

     

     

     

    Lennar Homebuilding

     

    $

    834,185

     

    761,386

     

    2,675,124

     

    2,705,639

     

    Lennar Financial Services

     

     

    72,009

     

    79,059

     

    255,518

     

    275,786

     

    Rialto Investments

     

     

    46,460

     

    19,679

     

    164,743

     

    92,597

     

     

      Total revenues

     

    $

    952,654

     

    860,124

     

    3,095,385

     

    3,074,022

     

     

     

     

     

     

     

     

     

     

     

     

    Lennar Homebuilding operating earnings 

     

    $

    25,205

     

    27,008

     

    109,044

     

    100,060

    Lennar Financial Services operating earnings 

     

     

    9,063

     

    11,719

     

    20,729

     

    31,284

    Rialto Investments operating earnings 

     

     

    6,036

     

    25,112

     

    63,457

     

    57,307

    Corporate general and administrative expenses

     

     

    (28,530)

     

    (25,058)

     

    (95,256)

     

    (93,926)

    Earnings before income taxes

     

     

    11,774

     

    38,781

     

    97,974

     

    94,725

    Benefit for income taxes

     

     

    13,697

     

    3,737

     

    14,570

     

    25,734

    Net earnings (including net earnings (loss)

     

     

     

     

     

     

     

     

     

     

     

    attributable to noncontrolling interests)

     

     

    25,471

     

    42,518

     

    112,544

     

    120,459

     

    Less: Net earnings (loss) attributable to 

     

     

     

     

     

     

     

     

     

     

     

    noncontrolling interests

     

     

    (4,807)

     

    10,488

     

    20,345

     

    25,198

    Net earnings attributable to Lennar 

     

    $

    30,278

     

    32,030

     

    92,199

     

    95,261

     

     

     

     

     

     

     

     

     

     

     

     

    Average shares outstanding:

     

     

     

     

     

     

     

     

     

     

    Basic

     

     

    184,723

     

    183,102

     

    184,541

     

    182,960

     

    Diluted

     

     

    195,425

     

    193,239

     

    195,185

     

    188,857

     

     

     

     

     

     

     

     

     

     

     

     

    Earnings per share:

     

     

     

     

     

     

     

     

     

     

    Basic

     

    $

    0.16

     

    0.17

     

    0.49

     

    0.51

     

    Diluted

     

    $

    0.16

     

    0.17

     

    0.48

     

    0.51

     

     

     

     

     

     

     

     

     

     

     

     

    Supplemental information:

     

     

     

     

     

     

     

     

     

     

    Interest incurred (1)

     

    $

    50,406

     

    45,405

     

    201,401

     

    181,480

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    EBIT (2):

     

     

     

     

     

     

     

     

     

     

     

    Net earnings attributable to Lennar

     

    $

    30,278

     

    32,030

     

    92,199

     

    95,261

     

     

    Benefit for income taxes

     

     

    (13,697)

     

    (3,737)

     

    (14,570)

     

    (25,734)

     

     

    Interest expense

     

     

    43,221

     

    36,907

     

    162,970

     

    143,946

     

     

    EBIT

     

     

    $

    59,802

     

    65,200

     

    240,599

     

    213,473

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (1)

    Amount represents interest incurred related to Lennar 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

     

    Years Ended

     

     

     

     

     

     

    November 30,

     

    November 30,

     

     

     

     

     

     

    2011

     

    2010

     

    2011

     

    2010

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Lennar Homebuilding revenues:

     

     

     

     

     

     

     

     

     

     

    Sales of homes

    $

    816,523

     

    725,795

     

    2,624,785

     

    2,631,314

     

     

    Sales of land 

     

    17,662

     

    35,591

     

    50,339

     

    74,325

     

     

     

    Total revenues

     

    834,185

     

    761,386

     

    2,675,124

     

    2,705,639

     

     

     

     

     

     

     

     

     

     

     

    Lennar Homebuilding costs and expenses:

     

     

     

     

     

     

     

     

     

     

    Cost of homes sold

     

    658,152

     

    597,080

     

    2,101,414

     

    2,113,393

     

     

    Cost of land sold

     

    16,826

     

    21,878

     

    42,611

     

    52,968

     

     

    Selling, general and administrative

     

    112,462

     

    102,049

     

    384,798

     

    376,962

     

     

    Total costs and expenses

     

    787,440

     

    721,007

     

    2,528,823

     

    2,543,323

     

    Lennar Homebuilding operating margins

     

    46,745

     

    40,379

     

    146,301

     

    162,316

     

    Lennar Homebuilding equity in loss

     from unconsolidated entities

     

    (69,242)

     

    (1,656)

     

    (62,716)

     

    (10,966)

     

    Lennar Homebuilding other income, net 

     

    69,698

     

    4,861

     

    116,109

     

    19,135

     

    Other interest expense

     

    (21,996)

     

    (16,576)

     

    (90,650)

     

    (70,425)

     

    Lennar Homebuilding operating earnings 

    $

    25,205

     

    27,008

     

    109,044

     

    100,060

     

    Lennar Financial Services revenues

    $

    72,009

     

    79,059

     

    255,518

     

    275,786

     

    Lennar Financial Services costs and expenses

     

    62,946

     

    67,340

     

    234,789

     

    244,502

     

    Lennar Financial Services operating earnings 

    $

    9,063

     

    11,719

     

    20,729

     

    31,284

     

     

     

     

     

     

     

     

     

     

     

    Rialto Investments revenues

    $

    46,460

     

    19,679

     

    164,743

     

    92,597

     

    Rialto Investments costs and expenses

     

    38,399

     

    20,831

     

    132,583

     

    67,904

     

    Rialto Investments equity in earnings (loss)

     from unconsolidated entities

     

    (2,961)

     

    9,013

     

    (7,914)

     

    15,363

     

    Rialto Investments other income, net

     

    936

     

    17,251

     

    39,211

     

    17,251

     

    Rialto Investments operating earnings 

    $

    6,036

     

    25,112

     

    63,457

     

    57,307

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

      

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    LENNAR CORPORATION AND SUBSIDIARIES

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Summary of Deliveries and New Orders 

     

    (Dollars in thousands)

     

    (unaudited)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Three Months Ended

     

    Years Ended

     

     

     

     

     

     

     

     

     

    November 30,

     

    November 30,

     

     

     

     

     

     

     

     

     

    2011

     

    2010

     

    2011

     

    2010

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Deliveries - Homes:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    East

     

     

     

     

    1,413

     

    1,393

     

    4,576

     

    4,539

     

     

     

    Central

     

     

     

     

    474

     

    422

     

    1,661

     

    1,682

     

     

     

    West

     

     

     

     

    580

     

    490

     

    1,846

     

    2,079

     

     

     

    Southeast Florida

     

     

     

     

    331

     

    240

     

    904

     

    536

     

     

     

    Houston

     

     

     

     

    466

     

    428

     

    1,411

     

    1,645

     

     

     

    Other

     

     

     

     

    111

     

    116

     

    447

     

    474

     

     

     

     

    Total

     

     

     

     

    3,375

     

    3,089

     

    10,845

     

    10,955

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Of the total home deliveries listed above, 16 and 99, respectively, represent home deliveries from unconsolidated entities for the three months and year ended November 30, 2011,compared to 29 and 96 home deliveries from unconsolidated entities in the same periods last year. 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Deliveries - Dollar Value:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    East

     

     

     

     

    $ 313,706

     

    294,335

     

    1,009,750

     

    970,355

     

     

     

    Central

     

     

     

     

    100,096

     

    86,789

     

    355,350

     

    348,486

     

     

     

    West

     

     

     

     

    182,182

     

    163,582

     

    598,202

     

    711,822

     

     

     

    Southeast Florida

     

     

     

     

    85,824

     

    62,800

     

    239,607

     

    131,091

     

     

     

    Houston

     

     

     

     

    106,369

     

    92,915

     

    321,908

     

    357,590

     

     

     

    Other

     

     

     

     

    37,638

     

    43,212

     

    166,186

     

    172,948

     

     

     

     

    Total

     

     

     

     

    $ 825,815

     

    743,633

     

    2,691,003

     

    2,692,292

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Of the total dollar value of home deliveries listed above, $9.3 million and $66.2 million, respectively, represent the dollar value of home deliveries from unconsolidated entities for the three months and year ended November 30, 2011, compared to $17.8 million and $61.0 million dollar value of home deliveries from unconsolidated entities in the same periods last year. 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    New Orders - Homes:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    East

     

     

     

     

    1,258

     

    1,024

     

    4,769

     

    4,509

     

     

     

    Central

     

     

     

     

    402

     

    425

     

    1,716

     

    1,769

     

     

     

    West

     

     

     

     

    526

     

    394

     

    1,965

     

    1,922

     

     

     

    Southeast Florida

     

     

     

     

    303

     

    168

     

    947

     

    614

     

     

     

    Houston

     

     

     

     

    418

     

    397

     

    1,521

     

    1,641

     

     

     

    Other

     

     

     

     

    120

     

    112

     

    494

     

    473

     

     

     

     

    Total

     

     

     

     

    3,027

     

    2,520

     

    11,412

     

    10,928

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Of the total new orders listed above, 12 and 98, respectively, represent new orders from unconsolidated entities for the three months and year ended November 30, 2011, compared to 24 and 90 new orders from unconsolidated entities in the same periods last year.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    New Orders - Dollar Value:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    East

     

     

     

     

    $ 275,378

     

    213,507

     

    1,051,624

     

    954,255

     

     

     

    Central

     

     

     

     

    84,428

     

    85,237

     

    367,274

     

    365,667

     

     

     

    West

     

     

     

     

    162,165

     

    119,533

     

    638,418

     

    625,469

     

     

     

    Southeast Florida

     

     

     

     

    79,762

     

    42,168

     

    254,632

     

    156,424

     

     

     

    Houston

     

     

     

     

    94,465

     

    84,538

     

    342,836

     

    355,771

     

     

     

    Other

     

     

     

     

    48,500

     

    40,535

     

    189,658

     

    169,025

     

     

     

     

    Total

     

     

     

     

    $ 744,698

     

    585,518

     

    2,844,442

     

    2,626,611

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Of the total dollar value of new orders listed above, $6.7 million and $65.1 million, respectively, represent the dollar value of new orders from unconsolidated entities for the three months and year ended November 30, 2011, compared to $14.2 million and $55.9 million dollar value of new orders from unconsolidated entities in the same periods last year.

     

     

      

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    LENNAR CORPORATION AND SUBSIDIARIES

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Summary of Backlog 

     

    (Dollars in thousands)

     

    (unaudited)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    November 30,

     

     

     

     

     

     

     

     

     

     

     

     

     

    2011

     

    2010

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Backlog - Homes:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    East

     

     

     

     

     

     

     

     

    948

     

    755

     

     

     

    Central

     

     

     

     

     

     

     

     

    309

     

    254

     

     

     

    West

     

     

     

     

     

     

     

     

    298

     

    179

     

     

     

    Southeast Florida

     

     

     

     

     

     

     

     

    166

     

    123

     

     

     

    Houston

     

     

     

     

     

     

     

     

    355

     

    245

     

     

     

    Other

     

     

     

     

     

     

     

     

    95

     

    48

     

     

     

    Total

     

     

     

     

     

     

     

     

    2,171

     

    1,604

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Of the total homes in backlog listed above, 2 homes represents the backlog from unconsolidated entities at November 30, 2011, compared to 3 homes in backlog from unconsolidated entities at November 30, 2010.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Backlog - Dollar Value:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    East

     

     

     

     

     

     

     

     

    $    220,974

     

    176,588

     

     

     

    Central

     

     

     

     

     

     

     

     

    65,256

     

    52,923

     

     

     

    West

     

     

     

     

     

     

     

     

    97,292

     

    58,072

     

     

     

    Southeast Florida

     

     

     

     

     

     

     

     

    52,013

     

    39,035

     

     

     

    Houston

     

     

     

     

     

     

     

     

    79,800

     

    58,822

     

     

     

    Other

     

     

     

     

     

     

     

     

    45,324

     

    21,852

     

     

     

    Total

     

     

     

     

     

     

     

     

    $    560,659

     

    407,292

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Of the total dollar value of homes in backlog listed above, $1.0 million represents the backlog dollar value from unconsolidated entities at November 30, 2011, compared to $2.1 million of backlog dollar value from unconsolidated entities at November 30, 2010.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Lennar's reportable homebuilding segments and homebuilding other consist of homebuilding divisions located in:

     

     

     

     

    East:

     

    Florida(1), Georgia, Maryland, New Jersey, North Carolina, South Carolina and Virginia

     

     

     

     

    Central:

     

    Arizona, Colorado and Texas(2)

     

     

     

     

    West:

     

    California and Nevada

     

     

     

     

    Southeast Florida:

     

    Southeast Florida

     

     

     

     

    Houston:

     

    Houston, Texas

     

     

     

     

    Other:

     

    Illinois and Minnesota 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (1) Florida in the East reportable segment excludes Southeast Florida, which is its own reportable segment.

     

     

    (2) Texas in the Central reportable segment excludes Houston, Texas, which is its own reportable segment.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Supplemental Data

     

    (Dollars in thousands)

     

    (unaudited)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    November 30,

     

     

     

     

     

     

     

     

     

     

     

     

     

    2011

     

    2010

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Lennar Homebuilding debt

     

     

     

     

     

     

     

     

    $ 3,362,759

     

    3,128,154

     

     

    Total stockholders' equity

     

     

     

     

     

     

     

     

    2,696,468

     

    2,608,949

     

     

     

    Total capital

     

     

     

     

     

     

     

     

    $ 6,059,227

     

    5,737,103

     

     

    Lennar Homebuilding debt to total capital

     

     

     

     

     

     

     

    55.5%

     

    54.5%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Lennar Homebuilding debt

     

     

     

     

     

     

     

     

    $ 3,362,759

     

    3,128,154

     

     

    Less: Lennar Homebuilding cash and cash equivalents

     

     

     

     

     

     

    1,024,212

     

    1,207,247

     

     

     

    Net Lennar Homebuilding debt

     

     

     

     

     

     

     

     

    $ 2,338,547

     

    1,920,907

     

     

    Net Lennar Homebuilding debt to total capital (1)

     

     

     

     

     

     

    46.4%

     

    42.4%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (1)

    Net Lennar Homebuilding debt to total capital consists of net Lennar Homebuilding debt (Lennar Homebuilding debt less Lennar Homebuilding cash and cash equivalents) divided by total capital (net Lennar Homebuilding debt plus total stockholders' equity).

     

     

     

     

    SOURCE Lennar Corporation

    Diane Bessette, Vice President and Treasurer, Lennar Corporation, +1-305-229-6419

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Marshall Ames

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305-228-8383 - Fax

Marshall.Ames@lennar.com

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