Lennar(LEN_B) - 2024 Q2 - Quarterly Results

Financial Performance - Net earnings increased 9% to $954 million, or$ 3.45 per diluted share, compared to $872 million, or$ 3.01 per diluted share in the prior year[4]. - Total revenues for the three months ended May 31, 2024, increased to $8,765,592, up 8.9% from$ 8,045,151 in the same period of 2023[23]. - Net earnings attributable to Lennar for the three months ended May 31, 2024, were $954,311, a 9.5% increase from$ 871,694 in the same period of 2023[23]. - Basic and diluted earnings per share for the three months ended May 31, 2024, increased to $3.45, up from$ 3.01 in 2023, representing a 14.6% growth[23]. - Homebuilding operating earnings for the three months ended May 31, 2024, were $1,340,155, compared to$ 1,214,409 in 2023, marking a 10.3% increase[26]. - Financial Services operating earnings increased to $146 million, compared to$ 112 million in the prior year[12]. Home Sales and Orders - New orders rose 19% to 21,293 homes, while deliveries increased 15% to 19,690 homes[3]. - Total revenues from home sales increased 9% to $8.4 billion, driven by a 15% increase in home deliveries[9]. - New orders for homes totaled 21,293 for the three months ended May 31, 2024, up from 17,885 in 2023, indicating an increase of 19.5%[29]. - Total new orders for the six months ended May 31, 2024, increased to 39,469 homes, up 23.1% from 32,079 homes in the same period of 2023, with a total dollar value of$ 16.94 billion compared to $14.58 billion[32]. Homebuilding Costs and Margins - Homebuilding gross margin was 22.6%, up 10 basis points year over year[5]. - The company expects to deliver between 20,500 and 21,000 homes in Q3 2024, with a gross margin of approximately 23.0%[20]. - Selling, general and administrative expenses as a percentage of revenues from home sales increased to 7.5% from 6.7% in the prior year[11]. - Total homebuilding costs and expenses for the three months ended May 31, 2024, were$ 7,106,455, an increase from $6,438,957 in 2023, reflecting a 10.4% rise[26]. Inventory and Backlog - The return on inventory improved to 31.4%, a year-over-year increase of 110 basis points[7]. - The backlog of homes as of May 31, 2024, was 17,873 homes, down 11.6% from 20,214 homes in 2023, with a total backlog dollar value of$ 8.23 billion compared to $9.53 billion[33]. Cash and Debt Position - Homebuilding cash and cash equivalents stood at$ 3.6 billion, with no outstanding borrowings under the $2.2 billion revolving credit facility[19]. - Cash and cash equivalents decreased to$ 3.60 billion as of May 31, 2024, from $6.27 billion at November 30, 2023[35]. - Homebuilding debt was reported at$ 2.24 billion, down from $2.82 billion in the previous period, resulting in a homebuilding debt to total capital ratio of 7.7%[37]. - The company reported a net homebuilding debt of$ (1.36) billion as of May 31, 2024, indicating a strong cash position relative to its debt[37]. Sales Price Trends - Average sales price per home delivered was $426,000, down 5% from the previous year[5]. - Average sales price of homes delivered decreased to$ 426,000 for the three months ended May 31, 2024, down from $449,000 in 2023, a decline of 5.1%[28]. - The average sales price for new homes decreased to$ 429,000 in 2024 from $455,000 in 2023, reflecting a decline of 5.7%[32]. - The average sales price for homes in the East region decreased to$ 413,000 in 2024 from $433,000 in 2023, while the Central region saw a decrease from$ 422,000 to $402,000[32]. - The average sales price for homes in the West region increased slightly to$ 626,000 in 2024 from $620,000 in 2023[32]. - The average sales price for homes in the Texas region decreased to$ 254,000 in 2024 from $285,000 in 2023, reflecting a decline of 10.9%[32]. Multifamily Operations - Multifamily operating loss for the three months ended May 31, 2024, was$ (20,474), compared to a loss of $(8,162) in 2023, widening the loss by 150.5%[26]. Interest Expenses - Interest incurred related to homebuilding debt decreased to$ 33,764 for the three months ended May 31, 2024, down from $49,704 in 2023, a reduction of 32.2%[23]. Stockholders' Equity - Stockholders' equity increased to$ 26.88 billion as of May 31, 2024, compared to $26.58 billion at the end of November 2023[37].