Financial Performance - Net earnings increased 21% to $719 million, or $2.57 per diluted share, compared to $597 million, or $2.06 per diluted share in the prior year[4]. - Total revenues for the three months ended February 29, 2024, increased to $7,312,930,000 from $6,490,429,000, representing a growth of approximately 12.7% year-over-year[22]. - Homebuilding revenues rose to $6,930,991,000, up from $6,156,305,000, with home sales contributing $6,901,781,000, an increase from $6,093,827,000[26]. - Homebuilding operating earnings improved to $1,028,796,000 compared to $906,839,000, reflecting a year-over-year increase of about 13.5%[26]. - The net earnings attributable to Lennar for the quarter were $719,334,000, compared to $596,534,000 in the prior year, indicating a growth of around 20.5%[22]. Orders and Deliveries - New orders rose 28% to 18,176 homes, with a dollar value increase of 21% to $7.7 billion[3]. - Deliveries increased 23% to 16,798 homes, contributing to total revenues of $7.3 billion, a 13% increase from the previous year[3]. - Total home deliveries for the quarter reached 16,798 homes, with a dollar value of $6,944,742,000, compared to 13,659 homes valued at $6,125,500,000 in the same period last year[28]. - New orders increased to 18,176 homes with a total dollar value of $7,742,382,000, compared to 14,194 homes valued at $6,413,462,000, reflecting a growth of approximately 20.6% in dollar value[29]. Margins and Pricing - Homebuilding gross margin improved to 21.8%, up 60 basis points year over year, while net margin on home sales was 13.6%[3]. - The average sales price per home delivered was $413,000, down 8% from the previous year due to increased use of incentives[5]. - Average sales price for homes delivered was $413,000, down from $448,000 in the previous year, showing a decrease of approximately 7.8%[28]. Financial Services - Financial Services operating earnings increased to $131 million, up from $78 million in the prior year, driven by higher profit per locked loan[12]. - Financial Services operating earnings surged to $131,296,000, up from $78,737,000, marking a significant increase of approximately 67%[26]. Assets and Liabilities - Total assets decreased to $38,951,199 thousand as of February 29, 2024, from $39,234,303 thousand on November 30, 2023, reflecting a decline of approximately 0.7%[33]. - Total liabilities decreased to $12,173,269 thousand from $12,532,337 thousand, a decline of approximately 2.9%[33]. - Cash and cash equivalents for homebuilding stood at $5.0 billion, with no outstanding borrowings under the $2.6 billion revolving credit facility[3]. - Cash and cash equivalents decreased to $4,950,128 thousand from $6,273,724 thousand, a decline of approximately 21%[33]. Inventory and Backlog - The backlog of homes decreased to 16,270 homes with a dollar value of $7,432,118,000, down from 19,403 homes valued at $9,028,442,000, indicating a decline of about 17.6% in dollar value[30]. - Finished homes and construction in progress inventory rose to $11,092,036 thousand, an increase of 6.1% from $10,455,666 thousand[33]. - Consolidated inventory not owned increased to $3,547,921 thousand, up from $2,992,528 thousand, reflecting an increase of 18.5%[33]. Shareholder Returns - The company repurchased 3.4 million shares for $506 million, increasing the stock repurchase program by an additional $5.0 billion[3]. - Stockholders' equity increased to $26,647,835 thousand, up from $26,580,664 thousand, representing a growth of 0.25%[35]. - Retained earnings increased to $22,949,315 thousand, up from $22,369,368 thousand, showing a growth of 2.6%[33]. - Total capital increased to $29,478,167 thousand from $29,397,146 thousand, reflecting a growth of 0.3%[35]. Debt Management - Homebuilding debt remained stable at $2,830,332 thousand, with a homebuilding debt to total capital ratio of 9.6%[35]. - Interest incurred related to homebuilding debt decreased to $36,511,000 from $49,577,000, a reduction of about 26.4% year-over-year[22]. - Net homebuilding debt improved to $(2,119,796) thousand, indicating a reduction in leverage compared to $(3,457,242) thousand in the previous quarter[35].
Lennar(LEN_B) - 2024 Q1 - Quarterly Results