Lennar Reports Fourth Quarter EPS of $2.82

Rhea-AI Summary

Lennar Corporation reported strong fourth-quarter results for 2020, with net earnings of $882.8 million or $2.82 per diluted share, up significantly from $674.3 million or $2.13 per share in 2019. Total revenues for the quarter reached $6.8 billion, down 2%, while new orders increased 16% to 15,214 homes, valued at $6.3 billion. The backlog rose 21% to 18,821 homes at a dollar value of $7.8 billion. Financial services also showed strong performance, with $151.2 million in operating earnings, a significant increase from the prior year.

Positive

• Net earnings of $2.5 billion for fiscal 2020, up from $1.8 billion in 2019.
• Gross margin on home sales increased to 25.0%, up 350 basis points year-over-year.
• Operating earnings for financial services segment rose to $151.2 million, a record high.

Negative

• Home deliveries decreased by 2% in Q4 2020 compared to Q4 2019.
• Revenues from home sales slightly decreased by 2% in Q4 2020.

MIAMI, Dec. 16, 2020 /PRNewswire/ -- 

2020 Fourth Quarter

• Net earnings of $882.8 million, or $2.82 per diluted share, compared to $674.3 million, or $2.13 per diluted share
• Deliveries of 16,090 homes – down 2%
• New orders of 15,214 homes – up 16%; new orders dollar value of $6.3 billion – up 22%
• Backlog of 18,821 homes – up 21%; backlog dollar value of $7.8 billion – up 24%
• Revenues of $6.8 billion – down 2%
• Homebuilding operating earnings of $1.1 billion, compared to $892.5 million
• Gross margin on home sales of 25.0%, compared to 21.5%
• S,G&A expenses as a % of revenues from home sales improved to 7.5%, compared to 7.6%
• Net margin on home sales of 17.4%, the highest in the Company's history, compared to 13.9%
• Financial Services operating earnings of $151.2 million, compared to $74.8 million
• Multifamily operating earnings of $26.7 million, compared to $3.7 million
• Lennar Other operating loss of $1.2 million, compared to earnings of $10.7 million
• Homebuilding cash and cash equivalents of $2.7 billion
• No borrowings under the Company's $2.4 billion revolving credit facility
• Retired $1.2 billion of homebuilding senior notes, including all maturities that were due in fiscal year 2021
• Homebuilding debt to total capital of 24.9%, the lowest in the Company's history

2020 Fiscal Year

• Net earnings, revenues, deliveries and new orders for 2020 were the highest in the Company's history
• Net earnings of $2.5 billion, or $7.85 per diluted share, compared to net earnings of $1.8 billion, or $5.74 per diluted share
• Revenues of $22.5 billion – up 1%
• Deliveries of 52,925 homes – up 3%
• New orders of 56,169 homes – up 9%
• Paid off $2.1 billion of homebuilding debt
• Retired $1.5 billion of homebuilding senior notes
• Paid off approximately $600 million of other debts payable

Lennar Corporation (NYSE: LEN and LEN.B), one of the nation's largest homebuilders, today reported results for its fourth quarter and fiscal year ended November 30, 2020. Fourth quarter net earnings attributable to Lennar in 2020 were $882.8 million, or $2.82 per diluted share, compared to $674.3 million, or $2.13 per diluted share in the fourth quarter of 2019. Net earnings attributable to Lennar for the year ended November 30, 2020 were $2.5 billion, or $7.85 per diluted share, compared to $1.8 billion, or $5.74 per diluted share for the year ended November 30, 2019.

Stuart Miller, Executive Chairman of Lennar, said, "We are pleased to announce our results for the fourth quarter where we achieved net earnings of $882.8 million, or $2.82 per diluted share, compared to $674.3 million, or $2.13 per diluted share in the prior year. Our fourth quarter results benefited from the exceptional performance of our core homebuilding and financial services businesses combined with robust market conditions."

"The confluence of Millennials starting families and creating households of their own, along with the pro-housing effects of the COVID-19 pandemic, has materially strengthened demand. This surge in demand for housing, combined with the market's inability to produce sufficient homes to meet this demand, has exacerbated the already well-documented undersupply of new and existing homes for sale. Lennar is well positioned with its production-oriented, Everything's Included^® business model and strong land position to capitalize on this industry supply shortage."

"During the quarter, our core homebuilding operations continued to accelerate production, with starts up 28% over the prior year, as we focused on catching up for production lost to COVID-19 earlier in the year. As expected, our new home deliveries in the quarter decreased 2% from last year, but our focus on maximizing pricing power led to a 25.0% gross margin, a 350-basis point increase over the prior year, and a 17.4% net margin, an all-time high for the Company. In addition, our financial services business had an outstanding quarter with earnings of $151.2 million, an all-time quarterly high."

Rick Beckwitt, Co-Chief Executive Officer and Co-President of Lennar, said, "In the fourth quarter, we continued to focus on cash flow and returns. We executed on our previously stated focus of improving our controlled homesite percentage which increased by 600 basis points to 39% at the end of the fourth quarter from 33% last year, while reducing our years owned supply of homesites to 3.5 years from 4.1 years."

"During the quarter and fiscal year, we generated strong homebuilding cash flows of $2.0 billion and $3.8 billion, respectively, paid off debt of $1.2 billion and $2.1 billion, respectively, including all of our senior debt due in fiscal 2021, and had no borrowings under our $2.4 billion revolving credit facility at quarter end. We ended the quarter with $2.7 billion of cash and homebuilding debt to capital and net debt to capital of 24.9% and 15.3%, respectively, both all-time lows."

Jon Jaffe, Co-Chief Executive Officer and Co-President of Lennar, said, "Our sales pace continued to accelerate in the fourth quarter with strong sales in all of our major markets and we generated 4.3 sales per community, a 27% increase year-over-year. This sales improvement could have been even stronger if we had a singular focus on volume, but instead, we balanced sales, up 16% year-over-year, and production to drive growth in gross margin and cash flow, while allowing price appreciation to cover future cost escalation."

"Our laser focus on reducing construction costs helped drive excellent margins for the quarter. Additionally, our focus on improving our SG&A leverage, combined with the benefits of our technology efforts, resulted in an SG&A percentage of 7.5%, an all-time quarterly low."

Mr. Miller concluded, "The housing market has proven to be very strong and we expect it to continue to be a significant driver in the recovery of the overall economy over the next several years. We thank all of our associates and trade partners for their continued focus and dedication to ensure that we deliver high quality and safe homes during this pandemic. With an excellent balance sheet, strong cash flow generation and continued execution of our core operating strategies, we are well positioned for an even stronger 2021 with projected deliveries of 62,000 to 64,000 homes with a gross margin of 23.75% to 24.0%."

RESULTS OF OPERATIONS

THREE MONTHS ENDED NOVEMBER 30, 2020 COMPARED TO
THREE MONTHS ENDED NOVEMBER 30, 2019

Homebuilding

Revenues from home sales decreased 2% in the fourth quarter of 2020 to $6.3 billion from $6.4 billion in the fourth quarter of 2019. Revenues were lower primarily due to a 2% decrease in the number of home deliveries, excluding unconsolidated entities. New home deliveries, excluding unconsolidated entities, decreased to 16,038 homes in the fourth quarter of 2020 from 16,391 homes in the fourth quarter of 2019. The decrease in deliveries in the fourth quarter of 2020 was due to production lost to COVID-19 in the second quarter. The average sales price of homes delivered, excluding unconsolidated entities, remained consistent at $393,000 in the fourth quarter of 2020 compared to the fourth quarter of 2019.

Gross margins on home sales were $1.6 billion, or 25.0%, in the fourth quarter of 2020, compared to $1.4 billion, or 21.5%, in the fourth quarter of 2019. Gross margin percentage on home sales increased primarily due to the Company's focus on reducing construction costs combined with favorable market conditions. Loss on land sales in the fourth quarter of 2020 was $27.2 million, primarily due to a change in strategy with three land assets that resulted in impairments.

Selling, general and administrative expenses were $475.1 million in the fourth quarter of 2020, compared to $491.5 million in the fourth quarter of 2019. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 7.5% in the fourth quarter of 2020, from 7.6% in the fourth quarter of 2019, as the Company focused on improving its leverage combined with the benefits of the Company's technology efforts.

Financial Services

Operating earnings for the Financial Services segment were $151.2 million in the fourth quarter of 2020, compared to $74.8 million ($81.2 million net of noncontrolling interests) in the fourth quarter of 2019. Operating earnings increased due to an improvement in the mortgage business as a result of an increase in margin and volume. Additionally, operating earnings of the Company's title business increased primarily due to higher volume.

Other Ancillary Businesses

Operating earnings for the Multifamily segment were $26.7 million in the fourth quarter of 2020, compared to $3.7 million ($4.8 million net of noncontrolling interests) in the fourth quarter of 2019. Operating loss for the Lennar Other segment was $1.2 million in the fourth quarter of 2020, compared to operating earnings of $10.7 million in the fourth quarter of 2019.

RESULTS OF OPERATIONS

YEAR ENDED NOVEMBER 30, 2020 COMPARED TO
YEAR ENDED NOVEMBER 30, 2019

Homebuilding

Revenues from home sales increased 1% in the year ended November 30, 2020 to $20.8 billion from $20.6 billion in the year ended November 30, 2019. Revenues were higher primarily due to a 3% increase in the number of home deliveries, excluding unconsolidated entities, partially offset by a 1% decrease in the average sales price of homes delivered. New home deliveries, excluding unconsolidated entities, increased to 52,813 homes in the year ended November 30, 2020 from 51,412 homes in the year ended November 30, 2019, as a result of an increase in home deliveries in the Texas and West segments. The average sales price of homes delivered, excluding unconsolidated entities, decreased to $395,000 in the year ended November 30, 2020 from $400,000 in the year ended November 30, 2019. The decrease in average sales price primarily resulted from continuing to shift to lower-priced communities and regional product mix.

Gross margins on home sales were $4.7 billion, or 22.8%, in the year ended November 30, 2020, compared to $4.2 billion, or 20.6%, in the year ended November 30, 2019. The gross margin percentage on home sales increased primarily due to the Company's continued focus on reducing construction costs combined with favorable market conditions. Loss on land sales in the year ended November 30, 2020 was $49.1 million, primarily due to a write-off of costs in the second quarter as a result of Lennar not moving forward with a naval base development in Concord, California, northeast of San Francisco and a change in strategy with three land assets that resulted in impairments in the fourth quarter.

Selling, general and administrative expenses were $1.7 billion in both years ended November 30, 2020 and 2019. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 8.1% in the year ended November 30, 2020, from 8.3% in the year ended November 30, 2019, due to improved operating leverage as a result of an increase in home deliveries combined with the benefits of the Company's technology efforts.

Financial Services

Operating earnings for the Financial Services segment were $481.0 million ($495.0 million net of noncontrolling interests) in the year ended November 30, 2020, compared to $224.6 million ($244.3 million net of noncontrolling interests) in the year ended November 30, 2019. Operating earnings increased due to an improvement in the mortgage and title businesses as a result of an increase in volume and margin, as well as reductions in loan origination costs. Additionally, in the second quarter of 2020, the Financial Services segment recorded a $61.4 million gain on the deconsolidation of a previously consolidated entity.

Other Ancillary Businesses

Operating earnings for the Multifamily segment were $22.7 million in the year ended November 30, 2020, compared to operating earnings of $16.4 million ($18.1 million net of noncontrolling interests) in the year ended November 30, 2019. Operating loss for the Lennar Other segment was $10.3 million in the year ended November 30, 2020, compared to operating earnings of $31.5 million ($32.0 million net of noncontrolling interests) in the year ended November 30, 2019.

Debt Transactions

In the fourth quarter of 2020, the Company retired $1.2 billion of senior notes which included the redemption of $300 million aggregate principal amount of its 2.95% senior notes due November 2020 and early retirement of $400 million aggregate principal amount of its 8.375% senior notes due January 2021 and $500 million aggregate principal amount of its 4.75% senior notes due April 2021.

During the year ended November 30, 2020, the Company retired $1.5 billion of senior notes which included those senior notes described above and the redemption of $300 million aggregate principal amount of its 6.625% senior notes due May 2020. The redemption price for each issue of senior notes, which was paid in cash, was 100% of the principal amount plus accrued but unpaid interest and prepayment premiums.

Tax Rate

For the years ended November 30, 2020 and 2019, the Company had a tax provision of $656.2 million and $592.2 million, respectively, which resulted in an overall effective income tax rate of 21.0% and 24.3%, respectively. The reduction in the overall effective income tax rate was primarily due to the extension of the new energy efficient home tax credit during the first quarter of 2020.

Liquidity

At November 30, 2020, the Company had $2.7 billion of Homebuilding cash and cash equivalents and no outstanding borrowings under its $2.4 billion revolving credit facility, thereby providing $5.1 billion of available capacity.

2021 Guidance

The following are the Company's expected results of its homebuilding and financial services activities for the first quarter of 2021:

New Orders	14,500 - 14,800
Deliveries	12,200 - 12,500
Average Sales Price	$390,000
Gross Margin % on Home Sales	23.5% - 23.75%
S,G&A as a % of Home Sales	8.9% - 9.0%
Financial Services Operating Earnings	$110 million - $115 million

The following are the Company's expected results of its homebuilding and financial services activities for fiscal year 2021:

Deliveries	62,000 - 64,000
Average Sales Price	$386,000 - $388,000
Gross Margin % on Home Sales	23.75% - 24.0%
S,G&A as a % of Home Sales	7.8% - 8.0%
Financial Services Operating Earnings	$400 million - $425 million

About Lennar

Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations. Lennar builds affordable, move-up and active adult homes primarily under the Lennar brand name. Lennar's Financial Services segment provides mortgage financing, title and closing services primarily for buyers of Lennar's homes and, through LMF Commercial, originates mortgage loans secured primarily by commercial real estate properties throughout the United States. Lennar's Multifamily segment is a nationwide developer of high-quality multifamily rental properties. LEN^X drives Lennar's technology, innovation and strategic investments. For more information about Lennar, please visit www.lennar.com.

Note Regarding Forward-Looking Statements: Some of the statements in this press release are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995, including statements relating to the homebuilding market and other markets in which we participate. You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Accordingly, these forward-looking statements should be evaluated with awareness that there are many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those anticipated by the forward-looking statements. Important factors that could cause such differences include the potential negative impact to our business of the ongoing coronavirus (COVID-19) pandemic, the duration, impact and severity of which is highly uncertain; slowdowns in real estate markets in regions where we have significant Homebuilding or Multifamily development activities; increases in operating costs, including costs related to construction materials, labor, real estate taxes and insurance, which exceed our ability to increase prices, both in our Homebuilding and Multifamily businesses; reduced availability of mortgage financing or increased interest rates; decreased demand for our homes or Multifamily rental apartments; natural disasters or catastrophic events for which our insurance may not provide adequate coverage; our inability to successfully execute our strategies, including our land lighter strategy; a decline in the value of the land and home inventories we maintain and resulting possible future writedowns of the carrying value of our real estate assets; unfavorable losses in legal proceedings; conditions in the capital, credit and financial markets; changes in laws, regulations or the regulatory environment affecting our business, and the risks described in our filings with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended November 30, 2019. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

A conference call to discuss the Company's fourth quarter earnings will be held at 11:00 a.m. Eastern Time on Thursday, December 17, 2020. The call will be broadcast live on the Internet and can be accessed through the Company's website at www.lennar.com. If you are unable to participate in the conference call, the call will be archived at www.lennar.com for 90 days. A replay of the conference call will also be available later that day by calling 203-369-3605 and entering 5723593 as the confirmation number.

LENNAR CORPORATION AND SUBSIDIARIES
Selected Revenues and Operating Information
(In thousands, except per share amounts)
(unaudited)
	Three Months Ended							Years Ended
	November 30,							November 30,
	2020				2019			2020			2019
Revenues:
Homebuilding	$	6,354,416			6,534,898			20,981,136			20,793,216
Financial Services	258,319				252,781			890,311			824,810
Multifamily	205,424				175,936			576,328			604,700
Lennar Other	7,731				7,916			41,079			36,835
Total revenues	$	6,825,890			6,971,531			22,488,854			22,259,561
Homebuilding operating earnings	$	1,083,404			892,539			2,988,907			2,502,905
Financial Services operating earnings	151,230				74,755			480,952			224,642
Multifamily operating earnings	26,682				3,690			22,681			16,390
Lennar Other operating earnings (loss)	(1,211)				10,745			(10,334)			31,469
Corporate general and administrative expenses	(95,459)				(93,043)			(358,418)			(341,114)
Earnings before income taxes	1,164,646				888,686			3,123,788			2,434,292
Provision for income taxes	(273,737)				(217,503)			(656,235)			(592,173)
Net earnings (including net earnings (loss) attributable to noncontrolling interests)	890,909				671,183			2,467,553			1,842,119
Less: Net earnings (loss) attributable to noncontrolling interests	8,149				(3,121)			2,517			(6,933)
Net earnings attributable to Lennar	$	882,760			674,304			2,465,036			1,849,052
Average shares outstanding:
Basic	309,151				313,904			309,406			318,419
Diluted	309,151				313,906			309,407			318,422
Earnings per share:
Basic	$	2.82			2.13			7.88			5.76
Diluted	$	2.82			2.13			7.85			5.74
Supplemental information:
Interest incurred (1)	$	81,056			101,750			353,403			422,710
EBIT (2):
Net earnings attributable to Lennar	$	882,760			674,304			2,465,036			1,849,052
Provision for income taxes	273,737				217,503			656,235			592,173
Interest expense included in:
Costs of homes sold	101,465				116,387			349,109			371,821
Costs of land sold	1,026				1,024			2,594			5,554
Homebuilding other income (expense), net	5,246				6,108			22,401			17,620
Total interest expense	107,737				123,519			374,104			394,995
EBIT	$	1,264,234			1,015,326			3,495,375			2,836,220

(1)	Amount represents interest incurred related to Homebuilding debt.
(2)	EBIT is a non-GAAP financial measure defined as earnings before interest and taxes. This financial measure has been presented because the Company finds it important and useful in evaluating its performance and believes that it helps readers of the Company's financial statements compare its operations with those of its competitors. Although management finds EBIT to be an important measure in conducting and evaluating the Company's operations, this measure has limitations as an analytical tool as it is not reflective of the actual profitability generated by the Company during the period. Management compensates for the limitations of using EBIT by using this non-GAAP measure only to supplement the Company's GAAP results. Due to the limitations discussed, EBIT should not be viewed in isolation, as it is not a substitute for GAAP measures.

LENNAR CORPORATION AND SUBSIDIARIES
Segment Information
(In thousands)
(unaudited)
	Three Months Ended							Years Ended
	November 30,							November 30,
	2020				2019			2020			2019
Homebuilding revenues:
Sales of homes	$	6,306,947			6,445,208			20,840,159			20,560,147
Sales of land	42,342				68,991			123,365			203,567
Other homebuilding	5,127				20,699			17,612			29,502
Total revenues	6,354,416				6,534,898			20,981,136			20,793,216
Homebuilding costs and expenses:
Costs of homes sold	4,732,705				5,059,349			16,092,069			16,323,989
Costs of land sold	69,581				86,841			172,480			206,526
Selling, general and administrative	475,063				491,484			1,697,095			1,715,185
Total costs and expenses	5,277,349				5,637,674			17,961,644			18,245,700
Homebuilding net margins	1,077,067				897,224			3,019,492			2,547,516
Homebuilding equity in earnings (loss) from unconsolidated entities	19,241				(8,672)			(836)			(13,273)
Homebuilding other income (expense), net	(12,904)				3,987			(29,749)			(31,338)
Homebuilding operating earnings	$	1,083,404			892,539			2,988,907			2,502,905
Financial Services revenues	$	258,319			252,781			890,311			824,810
Financial Services costs and expenses	107,089				178,026			470,777			600,168
Financial Services gain on deconsolidation	—				—			61,418			—
Financial Services operating earnings	$	151,230			74,755			480,952			224,642
Multifamily revenues	$	205,424			175,936			576,328			604,700
Multifamily costs and expenses	195,974				168,094			575,581			599,604
Multifamily equity in earnings (loss) from unconsolidated entities and other gain	17,232				(4,152)			21,934			11,294
Multifamily operating earnings	$	26,682			3,690			22,681			16,390
Lennar Other revenues	$	7,731			7,916			41,079			36,835
Lennar Other costs and expenses	3,180				4,244			6,744			11,794
Lennar Other equity in earnings (loss) from unconsolidated entities	(6,325)				3,117			(35,037)			15,372
Lennar Other income (expense), net	563				3,956			(9,632)			(8,944)
Lennar Other operating earnings (loss)	$	(1,211)			10,745			(10,334)			31,469

LENNAR CORPORATION AND SUBSIDIARIES
Summary of Deliveries and New Orders
(Dollars in thousands, except average sales price)
(unaudited)
Lennar's reportable homebuilding segments and all other homebuilding operations not required to be reported separately have divisions located in:
East: Florida, New Jersey, Pennsylvania and South Carolina
Central: Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, Tennessee and Virginia
Texas: Texas
West: Arizona, California, Colorado, Nevada, Oregon, Utah and Washington
Other: Urban divisions
	For the Three Months Ended November 30,
	2020			2019			2020				2019			2020				2019
Deliveries:	Homes						Dollar Value							Average Sales Price
East	5,465			5,749			$	1,801,192			1,870,735			$	330,000			325,000
Central	3,295			3,606			1,250,769				1,366,549			380,000				379,000
Texas	2,788			2,533			763,388				730,021			274,000				288,000
West	4,541			4,511			2,506,760				2,464,909			552,000				546,000
Other	1			21			880				24,126			880,000				1,149,000
Total	16,090			16,420			$	6,322,989			6,456,340			$	393,000			393,000

Of the total homes delivered listed above, 52 homes with a dollar value of $16.0 million and an average sales price of $308,000 represent home deliveries from unconsolidated entities for the three months ended November 30, 2020, compared to 29 home deliveries with a dollar value of $11.1 million and an average sales price of $384,000 for the three months ended November 30, 2019.

	At November 30,						For the Three Months Ended November 30,
	2020			2019			2020			2019			2020				2019			2020				2019
New Orders:	Active Communities						Homes						Dollar Value							Average Sales Price
East	323			346			4,787			4,440			$	1,743,826			1,477,308			$	364,000			333,000
Central	285			337			3,164			2,646			1,260,761				1,012,571			398,000				383,000
Texas	213			238			2,751			2,146			765,238				617,132			278,000				288,000
West	353			359			4,509			3,854			2,497,449				2,046,997			554,000				531,000
Other	3			3			3			3			2,728				6,457			909,000				2,152,000
Total	1,177			1,283			15,214			13,089			$	6,270,002			5,160,465			$	412,000			394,000

Of the total new orders listed above, 34 homes with a dollar value of $10.5 million and an average sales price of $309,000 represent new orders in four active communities from unconsolidated entities for the three months ended November 30, 2020, compared to 35 new orders from unconsolidated entities with a dollar value of $11.5 million and an average sales price of $330,000 in five active communities for the three months ended November 30, 2019.

	For the Years Ended November 30,
	2020			2019			2020				2019			2020				2019
Deliveries:	Homes						Dollar Value							Average Sales Price
East	16,976			17,251			$	5,725,481			5,708,859			$	337,000			331,000
Central	10,684			10,799			4,084,514				4,089,840			382,000				379,000
Texas	9,425			8,193			2,640,762				2,526,364			280,000				308,000
West	15,814			15,178			8,400,943				8,203,790			531,000				541,000
Other	26			70			24,522				67,439			943,000				963,000
Total	52,925			51,491			$	20,876,222			20,596,292			$	394,000			400,000

Of the total homes delivered listed above, 112 homes with a dollar value of $36.1 million and an average sales price of $322,000 represent home deliveries from unconsolidated entities for the year ended November 30, 2020, compared to 79 home deliveries with a dollar value of $36.1 million and an average sales price of $458,000 for the year ended November 30, 2019.

New Orders:	Homes						Dollar Value							Average Sales Price
East	17,299			17,196			$	6,010,047			5,720,017			$	347,000			333,000
Central	11,905			10,620			4,602,720				4,032,899			387,000				380,000
Texas	10,078			8,215			2,752,008				2,478,981			273,000				302,000
West	16,868			15,335			9,005,958				8,024,755			534,000				523,000
Other	19			73			17,917				66,903			943,000				916,000
Total	56,169			51,439			$	22,388,650			20,323,555			$	399,000			395,000

Of the total new orders listed above, 119 homes with a dollar value of $37.3 million and an average sales price of $314,000 represent new orders from unconsolidated entities for the year ended November 30, 2020, compared to 103 new orders with a dollar value of $43.7 million and an average sales price of $424,000 for the year ended November 30, 2019.

LENNAR CORPORATION AND SUBSIDIARIES
Summary of Backlog
(Dollars in thousands, except average sales price)
(unaudited)
	November 30,
	2020			2019			2020				2019			2020				2019
Backlog:	Homes						Dollar Value							Average Sales Price
East (1)	6,013			5,690			$	2,310,935			2,026,369			$	384,000			356,000
Central	4,371			3,150			1,762,172				1,243,966			403,000				395,000
Texas	2,823			2,170			824,584				713,337			292,000				329,000
West	5,612			4,558			2,913,432				2,308,417			519,000				506,000
Other	2			9			1,848				8,453			924,000				939,000
Total	18,821			15,577			$	7,812,971			6,300,542			$	415,000			404,000

Of the total homes in backlog listed above, 38 homes with a backlog dollar value of $11.5 million and an average sales price of $302,000 represent the backlog from unconsolidated entities at November 30, 2020, compared to 31 homes with a backlog dollar value of $10.2 million and an average sales price of $328,000 at November 30, 2019.
(1)	During the year ended November 30, 2019, the Company acquired 13 homes in backlog.

LENNAR CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
(unaudited)
	November 30,
	2020				2019
ASSETS
Homebuilding:
Cash and cash equivalents	$	2,703,986			1,200,832
Restricted cash	15,211				9,698
Receivables, net	298,671				329,124
Inventories:
Finished homes and construction in progress	8,593,399				9,195,721
Land and land under development	7,495,262				8,267,647
Consolidated inventory not owned	836,567				313,139
Total inventories	16,925,228				17,776,507
Investments in unconsolidated entities	953,177				1,009,035
Goodwill	3,442,359				3,442,359
Other assets	1,190,793				1,021,684
	25,529,425				24,789,239
Financial Services	2,776,987				3,006,024
Multifamily	1,175,908				1,068,831
Lennar Other	452,857				495,417
Total assets	$	29,935,177			29,359,511
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable	$	1,037,338			1,069,179
Liabilities related to consolidated inventory not owned	706,691				260,266
Senior notes and other debts payable, net	5,955,758				7,776,638
Other liabilities	2,225,864				1,969,082
	9,925,651				11,075,165
Financial Services	1,644,248				1,988,323
Multifamily	252,911				232,155
Lennar Other	12,966				30,038
Total liabilities	11,835,776				13,325,681
Stockholders' equity:
Preferred stock	—				—
Class A common stock of $0.10 par value	29,894				29,712
Class B common stock of $0.10 par value	3,944				3,944
Additional paid-in capital	8,676,056				8,578,219
Retained earnings	10,564,994				8,295,001
Treasury stock	(1,279,227)				(957,857)
Accumulated other comprehensive income (loss)	(805)				498
Total stockholders' equity	17,994,856				15,949,517
Noncontrolling interests	104,545				84,313
Total equity	18,099,401				16,033,830
Total liabilities and equity	$	29,935,177			29,359,511

LENNAR CORPORATION AND SUBSIDIARIES
Supplemental Data
(Dollars in thousands)
(unaudited)
	November 30,
	2020				2019
Homebuilding debt	$	5,955,758			7,776,638
Stockholders' equity	17,994,856				15,949,517
Total capital	$	23,950,614			23,726,155
Homebuilding debt to total capital	24.9		%		32.8	%
Homebuilding debt	$	5,955,758			7,776,638
Less: Homebuilding cash and cash equivalents	2,703,986				1,200,832
Net homebuilding debt	$	3,251,772			6,575,806
Net homebuilding debt to total capital (1)	15.3		%		29.2	%

(1)

Net homebuilding debt to total capital is a non-GAAP financial measure defined as net homebuilding debt (homebuilding debt less homebuilding cash and cash equivalents) divided by total capital (net homebuilding debt plus stockholders' equity). The Company believes the ratio of net homebuilding debt to total capital is a relevant and a useful financial measure to investors in understanding the leverage employed in homebuilding operations. However, because net homebuilding debt to total capital is not calculated in accordance with GAAP, this financial measure should not be considered in isolation or as an alternative to financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement the Company's GAAP results.

 

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SOURCE Lennar Corporation

FAQ

What were Lennar's 2020 fourth quarter earnings results?

Lennar reported net earnings of $882.8 million, or $2.82 per diluted share in Q4 2020.

How did Lennar's new orders perform in Q4 2020?

New orders increased by 16% to 15,214 homes, with a total dollar value of $6.3 billion.

What is Lennar's stock symbol?

Lennar is traded under the ticker symbols LEN and LEN.B.

What were the revenues reported by Lennar in Q4 2020?

Lennar reported revenues of $6.8 billion for the fourth quarter of 2020.

What is the forecast for Lennar in 2021?

For 2021, Lennar projects deliveries between 62,000 and 64,000 homes.