Lennar(US:LEN)2025-01-23 22:25Homebuilding Operations - Homebuilding operations generated $34 billion in revenues, accounting for approximately 96% of consolidated revenues in fiscal 2024[11]. - New home deliveries reached 80,210 in fiscal 2024, up from 73,087 in fiscal 2023, representing a 15% increase[14]. - The average sales price of a Lennar home in fiscal 2024 was $423,000, down from $446,000 in fiscal 2023, indicating a decrease of approximately 5.2%[14]. - The backlog dollar value, including unconsolidated entities, was $5.4 billion at November 30, 2024, down from $6.6 billion at the same time in 2023[25]. - The company experienced a cancellation rate of 14% in 2024, slightly improved from 16% in 2023[24]. - The company is transitioning to a land-light operating model, aiming to reduce owned homesites and increase land control through options[13]. - The company operates in 1,447 communities as of November 30, 2024, an increase from 1,260 communities in the previous year[17]. - The company is focused on increasing efficiencies and reducing costs through technology and innovative strategies[13]. Financial Performance - Total revenues for the year ended November 30, 2024, increased to $35,441,452, up from $34,233,366 in 2023, representing a growth of approximately 3.5%[343]. - Homebuilding revenues reached $33,906,426 in 2024, compared to $32,660,987 in 2023, reflecting an increase of about 3.8%[343]. - Net earnings attributable to Lennar for 2024 were $3,932,533, slightly down from $3,938,511 in 2023, indicating a decrease of approximately 0.2%[343]. - Total liabilities rose to $13,291,556 in 2024, compared to $12,532,337 in 2023, marking an increase of about 6.1%[339]. - Stockholders' equity increased to $27,870,135 in 2024, up from $26,580,664 in 2023, representing a growth of approximately 4.9%[346]. - Basic earnings per share for 2024 were $14.31, compared to $13.73 in 2023, reflecting an increase of about 4.2%[343]. - The company reported total costs and expenses of $30,671,689 for 2024, an increase from $28,866,807 in 2023, which is a rise of approximately 6.3%[343]. Cash and Liquidity - Cash and cash equivalents decreased to $4.66 billion in 2024 from $6.27 billion in 2023, a decline of about 25.7%[334]. - The company experienced a net decrease in cash and cash equivalents of $1,580,728 in 2024, contrasting with a net increase of $1,755,168 in 2023[350]. - Total cash and cash equivalents at the end of 2024 were $4,990,210, down from $6,570,938 in 2023[350]. Investments and Acquisitions - The acquisition of Rausch Coleman Homes will expand Lennar's market presence into Arkansas, Oklahoma, Alabama, Kansas, and Missouri, while enhancing its existing footprint in Texas, Oklahoma, Alabama, and Florida[30]. - The Millrose Spin-Off will involve contributing land assets valued between $5.0 billion and $6.0 billion and approximately $1.0 billion in cash to Millrose Properties Inc.[27]. - The Millrose Spin-Off is expected to be completed by February 7, 2025, with approximately 80% of Millrose's common stock distributed to Lennar's stockholders[29]. Mortgage and Financial Services - In fiscal year 2024, Lennar originated approximately 54,600 residential mortgage loans totaling $19.8 billion, an increase from 47,000 loans totaling $17.4 billion in fiscal year 2023[32]. - Lennar's financial services subsidiaries provided loans to 84% of homebuyers who obtained mortgage financing in areas where services were offered[31]. - Financial Services revenues increased to $1,109,263 in 2024, up 13.5% from $976,859 in 2023[443]. - Financial Services operating earnings for 2024 were $577,184, an increase of 13.3% from $509,461 in 2023[444]. Market and Economic Conditions - The company is exposed to market risks, particularly fluctuations in interest rates affecting its variable rate debt and overall earnings[313]. - The company’s strategy includes mitigating interest rate risk through various financial instruments, ensuring stability in loan commitments[319]. - The company is subject to various regulations that may increase construction costs, such as requirements for energy-efficient materials and infrastructure commitments[59]. Employee and Operational Metrics - The company employed 13,265 individuals as of November 30, 2024, an increase from 12,284 individuals in the previous year, with significant growth in Homebuilding operations from 9,622 to 10,653 employees[70]. - The company had 1,436 active communities as of November 30, 2024, an increase from 1,255 in 2023[364]. Inventory and Assets - As of November 30, 2024, total assets increased to $41.31 billion from $39.23 billion in 2023, reflecting a growth of approximately 5.3%[334]. - The fair value of consolidated inventory not owned was reported at $4.08 billion as of November 30, 2024, compared to $2.99 billion in 2023, indicating a significant increase[334]. - Consolidated inventory not owned increased by $1.1 billion as of November 30, 2024, primarily due to land bank option contracts[376]. Risk Management and Reserves - The Company established reserves for possible losses based on an analysis of repurchase requests and actual past repurchases, indicating a proactive approach to risk management[426]. - The warranty reserve at the end of 2024 was $446.2 million, up from $414.8 million in 2023, reflecting an increase in warranties issued[407]. - The self-insurance reserve as of November 30, 2024, was $277.4 million, compared to $245.8 million in 2023, indicating a rise in estimated losses[408].