Lennar(US:LEN)2024-01-25 16:00Homebuilding Operations - Homebuilding operations generated $33 billion in revenues, accounting for approximately 95% of consolidated revenues in fiscal 2023[7]. - New home deliveries increased to 73,087 in fiscal 2023, up from 66,399 in fiscal 2022, representing an increase of 10.2%[9]. - The average sales price of a Lennar home decreased to $446,000 in fiscal 2023 from $480,000 in fiscal 2022, a decline of 7.1%[9]. - The backlog dollar value, including unconsolidated entities, was $6.6 billion at November 30, 2023, down from $8.7 billion at November 30, 2022, a decrease of 24.1%[19]. - 76% of total homesites were controlled through options with land banks and joint ventures as of November 30, 2023, compared to 69% a year earlier[12]. - The company experienced a cancellation rate of 16% in 2023, slightly down from 17% in 2022[19]. - The company was actively building and marketing homes in 1,260 communities as of November 30, 2023, an increase from 1,208 communities in the previous year[14]. - The company aims to maintain strong operating margins by deferring home sale price commitments until construction costs are finalized[8]. - The company is focused on a land light operating model, increasing the percentage of land controlled through options or agreements[8]. - The company has equity investments in 48 active homebuilding and land unconsolidated entities as of November 30, 2023[19]. Financial Services - In fiscal year 2023, the company originated approximately 47,000 residential mortgage loans totaling $17.4 billion, an increase from 37,700 loans totaling $14.4 billion in fiscal year 2022, representing a 20.8% increase in loan volume[20]. - The company locked interest rates on approximately 46,600 residential mortgage loans totaling $17.2 billion in fiscal year 2023, compared to 41,100 loans totaling $15.7 billion in fiscal year 2022, indicating a 9.6% increase in loan volume[20]. - As of November 30, 2023, the company had a total maximum borrowing capacity of $2.5 billion under its financial services warehouse facilities, including an uncommitted amount of $750 million[20]. - The company reported a net loss of $50.65 million in the Multifamily segment for 2023, compared to a profit of $69.49 million in 2022[271]. - The Financial Services segment originated commercial loans totaling $466.04 million in 2023, down from $740.35 million in 2022, indicating a decline of about 37%[285]. Revenue and Earnings - Total revenues for the year ended November 30, 2023, reached $34.23 billion, an increase of 1.67% compared to $33.67 billion in 2022[207]. - Net earnings attributable to Lennar for 2023 were $3.94 billion, down 14.7% from $4.61 billion in 2022[207]. - Basic earnings per share for 2023 were $13.73, a decrease from $15.74 in 2022[207]. - Total comprehensive income attributable to Lennar for 2023 was $3.94 billion, down from $4.62 billion in 2022[207]. - The company reported a significant increase in depreciation and amortization expenses to $110,164, up from $87,075 in 2022[211]. Assets and Liabilities - Total assets as of November 30, 2023, amounted to $39.23 billion, an increase from $37.98 billion in 2022[203]. - Total liabilities decreased to $12.53 billion in 2023 from $13.74 billion in 2022, reflecting a reduction of approximately 8.8%[207]. - The company’s total equity as of November 30, 2023, was $26.70 billion, an increase from $24.24 billion in 2022[209]. - The company reported $2.54 billion in liabilities related to consolidated inventory not owned, up from $1.97 billion in 2022, an increase of 29%[205]. - The company has $1.9 billion related to consolidated variable interest entities (VIEs) as of November 30, 2023[203]. Cash Flow and Financing - Cash and cash equivalents increased to $6.27 billion in 2023 from $4.62 billion in 2022[203]. - Net cash provided by operating activities increased to $5,179,738, up 58.5% from $3,265,668 in 2022[211]. - Total cash used in financing activities was $3,247,589, significantly higher than $1,277,279 in 2022[212]. - The company reported a total of $2,816,482 in homebuilding senior notes and other debts payable, up from $4,047,294 in the previous year[329]. - The company repurchased $196.1 million of 4.500% senior notes due April 2024 and $100.0 million of 4.75% senior notes due November 2027 during the year[306]. Investments and Impairments - The company has investments in unconsolidated entities totaling $1.1 billion as of November 30, 2023, down from $1.2 billion in 2022[292]. - The company estimated an other-than-temporary impairment of $36.8 million for an investment in an unconsolidated entity in 2023[233]. - The company reported unrealized losses from technology investments of $50.2 million in 2023, significantly reduced from $655.1 million in 2022[291]. - The carrying amount of the Company's investment in Doma Holdings, Inc. was zero as of November 30, 2023, due to allocated losses[292]. - The company wrote off $65.0 million related to a non-public technology investment during the year ended November 30, 2023[342]. Community and Sustainability - The company focuses on environmentally sustainable products, incorporating features like Low-VOC paint, WaterSense® faucets, Low-E windows, and Energy Star® appliances in new homes[37]. - The company is actively involved in community solar microgrid development in partnership with Sunnova[37]. - The company sold its SunStreet solar operations to Sunnova in 2021, believing that Sunnova can better maximize the potential of these operations[37]. Workforce and Talent Management - The company employed 12,284 individuals as of November 30, 2023, an increase from 12,012 individuals in the previous year, with 9,622 in Homebuilding operations[41]. - The company is focused on attracting and retaining talent, offering a comprehensive benefits package to its associates[39]. - The company does not have collective bargaining agreements with its associates, but it maintains healthy relations with its workforce[41]. Tax and Regulatory Matters - The provision for income taxes for 2023 includes current federal taxes of $1,037,229,000 and state taxes of $271,752,000, totaling $1,308,981,000[316]. - The effective tax rate for 2023 is reported at 23.96%, an increase from 22.84% in 2022[317]. - The company has federal tax effected NOL carryforwards that may offset future taxable income, beginning to expire in 2029[323]. - The company is subject to various federal, state, and local laws that regulate consumer debt collection activities, which could materially affect its operations if not complied with[36].