Homebuilding Operations - Homebuilding operations generated $32 billion in revenues, accounting for approximately 95% of consolidated revenues in fiscal 2022[11]. - New home deliveries were 66,399 in fiscal 2022, up from 59,825 in fiscal 2021, with an average sales price of $480,000 compared to $424,000 in the previous year[15]. - The backlog dollar value, including unconsolidated entities, was $8.7 billion at November 30, 2022, down from $11.4 billion at the same date in 2021[28]. - The cancellation rate increased to 21% and 26% in the third and fourth quarters of fiscal 2022, respectively, compared to 10% in 2021[27]. - The average sales price of a Lennar home has increased from $395,000 in fiscal 2020 to $480,000 in fiscal 2022, reflecting a significant upward trend[15]. - Homebuilding revenues for the year ended November 30, 2022, reached $31.95 billion, up 25% from $25.55 billion in 2021[311]. - Homebuilding costs and expenses for 2022 totaled $25.16 billion, an increase of 22.5% from $20.50 billion in 2021[311]. - Homebuilding revenues recognized at closing of sales, with average sales incentives of $17,300 per home in 2022, representing 3.5% of home sales revenues[322]. - The absorption rate per quarter for homes was 2 in 2022, compared to 12 in 2021[341]. Financial Performance - Net earnings attributable to Lennar for the year ended November 30, 2022, were $4.61 billion, a slight increase from $4.43 billion in 2021, reflecting a growth of about 4.1%[311]. - The Company reported a basic earnings per share of $15.74 for 2022, compared to $14.28 in 2021, representing an increase of 10.2%[311]. - Total comprehensive income attributable to Lennar for 2022 was $4.62 billion, compared to $4.43 billion in 2021, indicating a growth of approximately 4.3%[311]. - Net earnings for 2022 reached $4,648,501, an increase from $4,456,549 in 2021, representing a growth of approximately 4.3%[316]. - Total stockholders' equity increased to $24,100,500 in 2022, up from $20,816,425 in 2021, reflecting a growth of about 15.5%[314]. - Cash dividends for Class A common stock were $1.50 per share in 2022, compared to $1.00 per share in 2021, marking a 50% increase[314]. - Net cash provided by operating activities was $3,265,668 in 2022, compared to $2,532,774 in 2021, indicating a rise of approximately 28.9%[316]. - The company repurchased $1,039,309 in common stock during 2022, down from $1,430,212 in 2021, showing a decrease of about 27.4%[318]. - The balance of retained earnings rose to $18,861,417 in 2022, up from $14,685,329 in 2021, reflecting a growth of about 28.5%[314]. Assets and Liabilities - As of November 30, 2022, total assets increased to $37.98 billion from $33.21 billion in 2021, representing a growth of approximately 14.5%[303]. - Total liabilities rose to $13.74 billion in 2022 from $12.21 billion in 2021, marking an increase of approximately 12.5%[308]. - The carrying value of the Company's investments in unconsolidated variable interest entities (VIEs) was $1.2 billion as of November 30, 2022, compared to $972.08 million in 2021, indicating a 23.5% increase[298]. - The carrying value of consolidated VIEs' assets was $880.2 million as of November 30, 2022, with non-recourse liabilities amounting to $107.3 million[298]. - The Company had $2.0 billion in nonrefundable option deposits and pre-acquisition costs related to homesites as of November 30, 2022[343]. - Consolidated inventory not owned increased by $1.2 billion in 2022, reflecting a shift towards controlled homesites[346]. Employment and Operations - As of November 30, 2022, the company employed 12,012 individuals, an increase from 10,753 in the previous year, with 9,357 in Homebuilding operations[70]. - The company is focused on reducing selling, general, and administrative expenses by leveraging technology to lower customer acquisition costs[13]. - The company aims to transition to a land-light operating model, with 63% of total homesites controlled through options and joint ventures as of November 30, 2022, up from 59% in 2021[17]. Financial Services - The financial services subsidiary provided loans to 72% of homebuyers who obtained mortgage financing in areas where services were offered in fiscal 2022[31]. - Approximately 37,700 residential mortgage loans totaling $14.4 billion were originated in fiscal 2022, compared to 38,100 loans totaling $13.2 billion in fiscal 2021[32]. - The Financial Services segment primarily includes mortgage financing and title services, generating operating earnings from these activities[412]. - The Financial Services segment operates in the same states as the company's homebuilding operations, enhancing operational synergy[412]. Market and Economic Conditions - The company expects to continue experiencing variability in quarterly results due to the seasonal nature of the homebuilding business[51]. - The company is exposed to market risks, particularly fluctuations in interest rates affecting earnings and cash flows[282]. - The company’s forward-looking statements are subject to risks such as slowdowns in real estate markets and increased competition in the mortgage industry[75]. Sustainability and Community Impact - The company is committed to environmentally sustainable products, incorporating features like Low-VOC paint, WaterSense® faucets, Low-E windows, and Energy Star® appliances in new homes[64]. - Upward America has purchased 4,129 homes in 103 communities for a total purchase price of $1.1 billion, averaging $259,000 per home[47]. - Institutional investors have committed $1.6 billion to Upward America, which has reduced Lennar's initial commitment from $225 million to $125 million[45]. Shareholder Information - Stuart Miller, the Executive Chairman, controlled approximately 36% of the voting power of the Company's stock as of November 30, 2022[378]. - The Company’s total interest expense for the year ended November 30, 2022, was $312.7 million, down from $365.4 million in 2021, a decrease of approximately 14%[365]. - The total compensation expense for nonvested share-based awards was $184.1 million for the year ended November 30, 2022, compared to $135.1 million in 2021 and $107.1 million in 2020[383].
Lennar(LEN_B) - 2022 Q4 - Annual Report