Workflow
Lennar(LEN_B) - 2024 Q1 - Quarterly Results
LEN_BLennar(LEN_B)2024-03-12 16:00

Financial Performance - Net earnings increased 21% to 719million,or719 million, or 2.57 per diluted share, compared to 597million,or597 million, or 2.06 per diluted share in the prior year[4]. - Total revenues for the three months ended February 29, 2024, increased to 7,312,930,000from7,312,930,000 from 6,490,429,000, representing a growth of approximately 12.7% year-over-year[22]. - Homebuilding revenues rose to 6,930,991,000,upfrom6,930,991,000, up from 6,156,305,000, with home sales contributing 6,901,781,000,anincreasefrom6,901,781,000, an increase from 6,093,827,000[26]. - Homebuilding operating earnings improved to 1,028,796,000comparedto1,028,796,000 compared to 906,839,000, reflecting a year-over-year increase of about 13.5%[26]. - The net earnings attributable to Lennar for the quarter were 719,334,000,comparedto719,334,000, compared to 596,534,000 in the prior year, indicating a growth of around 20.5%[22]. Orders and Deliveries - New orders rose 28% to 18,176 homes, with a dollar value increase of 21% to 7.7billion[3].−Deliveriesincreased237.7 billion[3]. - Deliveries increased 23% to 16,798 homes, contributing to total revenues of 7.3 billion, a 13% increase from the previous year[3]. - Total home deliveries for the quarter reached 16,798 homes, with a dollar value of 6,944,742,000,comparedto13,659homesvaluedat6,944,742,000, compared to 13,659 homes valued at 6,125,500,000 in the same period last year[28]. - New orders increased to 18,176 homes with a total dollar value of 7,742,382,000,comparedto14,194homesvaluedat7,742,382,000, compared to 14,194 homes valued at 6,413,462,000, reflecting a growth of approximately 20.6% in dollar value[29]. Margins and Pricing - Homebuilding gross margin improved to 21.8%, up 60 basis points year over year, while net margin on home sales was 13.6%[3]. - The average sales price per home delivered was 413,000,down8413,000, down 8% from the previous year due to increased use of incentives[5]. - Average sales price for homes delivered was 413,000, down from 448,000inthepreviousyear,showingadecreaseofapproximately7.8448,000 in the previous year, showing a decrease of approximately 7.8%[28]. Financial Services - Financial Services operating earnings increased to 131 million, up from 78millionintheprioryear,drivenbyhigherprofitperlockedloan[12].−FinancialServicesoperatingearningssurgedto78 million in the prior year, driven by higher profit per locked loan[12]. - Financial Services operating earnings surged to 131,296,000, up from 78,737,000,markingasignificantincreaseofapproximately6778,737,000, marking a significant increase of approximately 67%[26]. Assets and Liabilities - Total assets decreased to 38,951,199 thousand as of February 29, 2024, from 39,234,303thousandonNovember30,2023,reflectingadeclineofapproximately0.739,234,303 thousand on November 30, 2023, reflecting a decline of approximately 0.7%[33]. - Total liabilities decreased to 12,173,269 thousand from 12,532,337thousand,adeclineofapproximately2.912,532,337 thousand, a decline of approximately 2.9%[33]. - Cash and cash equivalents for homebuilding stood at 5.0 billion, with no outstanding borrowings under the 2.6billionrevolvingcreditfacility[3].−Cashandcashequivalentsdecreasedto2.6 billion revolving credit facility[3]. - Cash and cash equivalents decreased to 4,950,128 thousand from 6,273,724thousand,adeclineofapproximately216,273,724 thousand, a decline of approximately 21%[33]. Inventory and Backlog - The backlog of homes decreased to 16,270 homes with a dollar value of 7,432,118,000, down from 19,403 homes valued at 9,028,442,000,indicatingadeclineofabout17.69,028,442,000, indicating a decline of about 17.6% in dollar value[30]. - Finished homes and construction in progress inventory rose to 11,092,036 thousand, an increase of 6.1% from 10,455,666thousand[33].−Consolidatedinventorynotownedincreasedto10,455,666 thousand[33]. - Consolidated inventory not owned increased to 3,547,921 thousand, up from 2,992,528thousand,reflectinganincreaseof18.52,992,528 thousand, reflecting an increase of 18.5%[33]. Shareholder Returns - The company repurchased 3.4 million shares for 506 million, increasing the stock repurchase program by an additional 5.0billion[3].−Stockholders′equityincreasedto5.0 billion[3]. - Stockholders' equity increased to 26,647,835 thousand, up from 26,580,664thousand,representingagrowthof0.2526,580,664 thousand, representing a growth of 0.25%[35]. - Retained earnings increased to 22,949,315 thousand, up from 22,369,368thousand,showingagrowthof2.622,369,368 thousand, showing a growth of 2.6%[33]. - Total capital increased to 29,478,167 thousand from 29,397,146thousand,reflectingagrowthof0.329,397,146 thousand, reflecting a growth of 0.3%[35]. Debt Management - Homebuilding debt remained stable at 2,830,332 thousand, with a homebuilding debt to total capital ratio of 9.6%[35]. - Interest incurred related to homebuilding debt decreased to 36,511,000from36,511,000 from 49,577,000, a reduction of about 26.4% year-over-year[22]. - Net homebuilding debt improved to (2,119,796)thousand,indicatingareductioninleveragecomparedto(2,119,796) thousand, indicating a reduction in leverage compared to (3,457,242) thousand in the previous quarter[35].