Financial Performance - Net earnings attributable to Lennar for Q3 2023 were $1.1 billion, or $3.87 per diluted share, down from $1.5 billion, or $5.03 per diluted share in Q3 2022[137]. - Total revenues for Q3 2023 were $8.73 billion, compared to $8.93 billion in Q3 2022, with home sales contributing $8.29 billion[139]. - For the full year 2023, delivery volume is targeted to be between 70,800 and 71,800 homes, representing a year-over-year increase of 7% to 8%[135]. - Revenues from home sales for the nine months ended August 31, 2023, were $22.0 billion, a slight decrease from $22.1 billion in the same period of 2022, primarily due to a 6% decrease in average sales price offset by a 6% increase in home deliveries[146]. - Total revenue for the three months ended August 31, 2023, was $8,285,873, with a gross margin of 24.4%[155]. - For the nine months ended August 31, 2023, total revenue was $22,016,279, with a gross margin of 22.9%[155]. - During the nine months ended August 31, 2023, total revenues reached $21,850,498, with net earnings attributable to the company at $2,365,125[200]. Home Sales and Deliveries - The company expects new orders for Q4 2023 to be between 16,200 and 17,200 homes, and deliveries to be between 21,500 and 22,500 homes[135]. - New home deliveries increased to 49,292 homes in the nine months ended August 31, 2023, compared to 46,335 homes in the same period of 2022, reflecting a 6% growth[146]. - Home deliveries for the three months ended August 31, 2023, totaled 18,559 homes, with a dollar value of $8,318,499 and an average sales price of $448,000[157]. - Total new orders for the three months ended August 31, 2023, increased to 19,666 homes with a dollar value of $8,639,642,000, compared to 14,366 homes valued at $6,657,723,000 for the same period in 2022, representing a 37.5% increase in dollar value[160]. Pricing and Margins - The average sales price of homes has stabilized, with no significant change sequentially, despite a year-over-year decline[131]. - The average sales price of homes delivered decreased to $448,000 in the nine months ended August 31, 2023, from $479,000 in the same period of 2022, representing a 6% decline[146]. - Gross margins on home sales for the nine months ended August 31, 2023, were $5.0 billion, or 22.9%, down from $6.4 billion, or 28.7%, in the same period of 2022[147]. - Gross margins on home sales for the third quarter of 2023 were $2.0 billion, or 24.4%, down from $2.5 billion, or 29.2%, in the third quarter of 2022, attributed to decreased revenues per square foot[142]. - The average sales price in the West segment decreased to $617,000 for the three months ended August 31, 2023, down from $690,000 in the prior year[157]. - The average sales price for homes delivered in the nine months ended August 31, 2023, was $449,000, down from $492,000 in 2022, indicating a decrease of 8.7%[161]. Expenses and Cost Management - Lennar's S,G&A expenses as a percentage of home sale revenues are expected to be between 6.7% and 6.9% for Q4 2023[135]. - Selling, general and administrative expenses increased to $1.5 billion in the nine months ended August 31, 2023, compared to $1.4 billion in the same period of 2022, with expenses as a percentage of revenues rising to 7.0% from 6.3%[148]. - Average sales incentives per home delivered increased to $36,400 for the three months ended August 31, 2023, representing 7.5% of revenue[159]. Market Conditions - The housing market is characterized by a low supply and strong demand for affordable products, with consumers adjusting to higher interest rates[130]. - The company aims to maintain tight inventory control and has significantly improved inventory management by focusing on selling homes in inventory[134]. - The backlog as of August 31, 2023, was 21,321 homes valued at $9,853,531,000, down from 25,734 homes valued at $12,887,422,000 in 2022, reflecting a 23.5% decrease in dollar value[163]. - Cancellation rates for the total segment decreased to 13% in Q3 2023 from 21% in Q3 2022, showing an improvement in sales stability[162]. Segment Performance - The Multifamily segment reported an operating loss of $38.5 million in the nine months ended August 31, 2023, compared to operating earnings of $54.6 million in the same period of 2022[151]. - The Lennar Other segment's operating loss was $85.8 million in the nine months ended August 31, 2023, an improvement from a loss of $629.5 million in the same period of 2022[151]. - Homebuilding revenues in the East segment decreased due to a reduction in home deliveries and average sales prices, with a notable decline in Florida and New Jersey[165]. - Homebuilding revenues in the Central segment increased due to higher home deliveries, despite a decrease in average sales prices across most states[166]. - Homebuilding revenues in Texas increased primarily due to more home deliveries, although the average sales price decreased due to market pricing[167]. - Homebuilding revenues in the West segment decreased due to lower average sales prices, despite an increase in home deliveries in several states[168]. Financial Services - The Financial Services segment provides mortgage financing and related services, primarily selling residential loans shortly after origination[174]. - The dollar value of mortgages originated in Q3 2023 was $4,435 million, up from $3,549 million in Q3 2022, representing a 25% increase[175]. - The number of mortgages originated increased to 11,900 in Q3 2023 from 9,200 in Q3 2022, a growth of 29%[175]. - The mortgage capture rate of Lennar homebuyers improved to 81% in Q3 2023 from 67% in Q3 2022[175]. Cash Flow and Capital Structure - Cash provided by operating activities for the nine months ended August 31, 2023, was $2.6 billion, significantly higher than $551 million for the same period in 2022[180]. - Cash used in financing activities totaled $3.2 billion for the nine months ended August 31, 2023, compared to $1.8 billion in the same period of 2022[184]. - Homebuilding debt to total capital decreased to 11.5% as of August 31, 2023, down from 14.4% in November 2022[186]. - The company had total assets of $43,764,258 and total liabilities of $9,370,601 as of August 31, 2023[200]. - The company controlled 283,750 homesites and owned 107,015 homesites as of August 31, 2023, representing 73% and 27% of total homesites, respectively[213]. Shareholder Returns - The company repurchased 7.0 million shares of Class A and Class B common stock during the nine months ended August 31, 2023[194]. - A quarterly cash dividend of $0.375 per share was declared on September 27, 2023, consistent with previous dividends paid in 2023[195].
Lennar(LEN_B) - 2023 Q3 - Quarterly Report