Financial Performance - Homebuilding revenues for the three months ended May 31, 2023, were $7.67 billion, a decrease of 3.9% compared to $7.98 billion for the same period in 2022[17] - Net earnings attributable to Lennar for the three months ended May 31, 2023, were $871.69 million, down 34% from $1.32 billion in the same period last year[17] - Basic earnings per share for the three months ended May 31, 2023, were $3.01, compared to $4.50 for the same period in 2022, representing a decline of 33%[17] - Total revenues for the three months ended May 31, 2023, were $8,045,151, a decrease of 3.7% compared to $8,358,696 for the same period in 2022[17] - Net earnings for the six months ended May 31, 2023, were $1,477,050, a decrease of 19.3% compared to $1,831,873 in 2022[21] - The company reported a significant unrealized loss from technology investments of $77,965 for the three months ended May 31, 2023, compared to a gain of $25,497 in the previous year[17] Assets and Liabilities - As of May 31, 2023, total assets decreased to $36.86 billion from $37.98 billion as of November 30, 2022, reflecting a decline of approximately 2.9%[7] - Total liabilities decreased to $11.70 billion as of May 31, 2023, from $13.74 billion as of November 30, 2022, a reduction of approximately 15%[13] - Cash and cash equivalents decreased to $4.00 billion as of May 31, 2023, from $4.62 billion as of November 30, 2022, a decline of approximately 13.3%[7] - Total inventories increased to $21.69 billion as of May 31, 2023, from $21.43 billion as of November 30, 2022, an increase of approximately 1.2%[7] - The total carrying amount of homebuilding senior notes and other debts payable as of May 31, 2023, was $3,852,258,000, down from $4,047,294,000 as of November 30, 2022[8] Cash Flow and Investments - Net cash provided by operating activities significantly increased to $1,638,676 from $52,610 in the prior year, reflecting a substantial improvement in operational efficiency[21] - The company reported a net cash used in investing activities of $80,572, compared to $64,768 in the prior year, highlighting increased investment in growth initiatives[24] - The company experienced a net decrease in cash and cash equivalents of $499,926 for the period, compared to a decrease of $1,402,274 in the previous year, showing improved cash management[24] - The company repurchased $465,297 in common stock during the six months ended May 31, 2023, compared to $905,543 in the same period last year, indicating a strategic shift in capital allocation[24] Segment Performance - The Financial Services segment's borrowings under residential facilities were $1,020,958 as of May 31, 2023, down from $1,877,411 as of November 30, 2022[45] - Financial Services segment revenues increased to $222,979 for the three months ended May 31, 2023, up 11.4% from $200,166 in the prior year[36] - The Multifamily segment reported revenues of $151.74 million for the three months ended May 31, 2023, down from $176.02 million in the same period of 2022, reflecting a decline of approximately 13.8%[36] - The Homebuilding segment's operating earnings for the West region were $355,472 for the three months ended May 31, 2023, down 58.1% from $847,849 in the same period of 2022[41] Equity and Shareholder Returns - The total stockholders' equity increased to $25.16 billion as of May 31, 2023, from $24.56 billion at the end of February 2023[66] - The company declared a quarterly cash dividend of $0.375 per share on both Class A and Class B common stock, payable on July 21, 2023[71] - The company has authorized a stock repurchase program of up to $2 billion, with no expiration date, to enhance shareholder value[72] - The company repurchased 1,269,681 shares of Class A common stock at an average price of $109.32 during the three months ended May 31, 2023[72] Tax and Legal Matters - The company reported a provision for income taxes of $280.88 million for the three months ended May 31, 2023, compared to $432.28 million for the same period in 2022, a decrease of 35%[17] - The effective tax rate for the six months ended May 31, 2023, was 24.1%, slightly lower than 24.7% for the same period in 2022[73] - The Company does not anticipate that the resolution of ongoing legal claims will materially affect its financial position[116] Other Financial Metrics - The warranty reserve at the end of the period was $415.15 million, up from $377.99 million at the end of the same period in 2022, reflecting an increase of 9.8%[117] - The company reported rental expenses of $52.99 million for the six months ended May 31, 2023, compared to $50.70 million for the same period in 2022, indicating a year-over-year increase of 2.5%[121] - The anticipated future costs related to performance surety bonds decreased to $2,173,244 thousand as of May 31, 2023, from $2,273,694 thousand as of November 30, 2022, reflecting a reduction of approximately 4.4%[81]
Lennar(LEN_B) - 2023 Q2 - Quarterly Report