Lennar Reports Third Quarter EPS of $4.52

Rhea-AI Summary

Lennar reported a robust third quarter for 2021, with net earnings of $1.4 billion, or $4.52 per diluted share, doubling from $666.4 million in 2020. Home deliveries increased by 10% to 15,199 homes, and new orders rose 5% to 16,277 homes, valuing $7.5 billion. Revenues hit $6.9 billion, an 18% increase. The gross margin on home sales reached a record 27.3%, driven by a 14% revenue increase per square foot. Despite supply chain challenges, the company ended the quarter with $2.6 billion in cash, no debt, and an upgraded investment-grade rating.

Positive

• Net earnings doubled to $1.4 billion, or $4.52 per diluted share.
• Home deliveries increased 10% to 15,199 homes.
• New orders rose 5% to 16,277 homes, totaling $7.5 billion.
• Revenues reached $6.9 billion, an 18% increase.
• Gross margin on home sales improved to 27.3%, highest in company history.
• Cash reserves of $2.6 billion with no debt.
• S&P upgraded Lennar to Investment Grade.

Negative

• Deliveries fell short of guidance by about 600 homes due to supply chain challenges.
• Multifamily segment reported an operating loss of $9.4 million.
• Adjusted fourth-quarter delivery guidance down to 18,000 homes.

MIAMI, Sept. 20, 2021 /PRNewswire/ --

• Net earnings of $1.4 billion, or $4.52 per diluted share, compared to net earnings of $666.4 million, or $2.12 per diluted share – both up over 100%
• Net earnings were $1.0 billion, or $3.27 per diluted share, excluding the mark to market gains on the Company's strategic investments
• Deliveries of 15,199 homes – up 10%
• New orders of 16,277 homes – up 5%; new orders dollar value of $7.5 billion – up 19%
• Backlog of 25,819 homes – up 31%; backlog dollar value of $12.0 billion – up 52%
• Revenues of $6.9 billion – up 18%
• Homebuilding net margins of $1.3 billion, compared to $826.6 million
• Gross margin on home sales of 27.3%, compared to 23.1%
• S,G&A expenses as a % of revenues from home sales of 7.0%, compared to 8.0%
• Net margin on home sales of 20.3%, compared to 15.1%
• Financial Services operating earnings of $111.9 million, compared to operating earnings of $135.1 million
• Multifamily operating loss of $9.4 million, compared to operating loss of $5.1 million
• Lennar Other operating earnings of $492.0 million, compared to operating earnings of $8.0 million
• Homebuilding cash and cash equivalents of $2.6 billion
• Controlled homesites as a percentage of total owned and controlled homesites increased to 53%, compared to 35%
• No borrowings under the Company's $2.5 billion revolving credit facility
• Retired $300 million of homebuilding senior notes due December 2021
• Homebuilding debt to total capital of 21.2%, compared to 29.5%
• Repurchased 2.5 million of Lennar Class A common stock for $246.4 million at an average per share price of $98.53
• S&P upgraded the Company to Investment Grade. The Company now has an Investment Grade rating from all three agencies.

Lennar Corporation (NYSE: LEN and LEN.B), one of the nation's leading homebuilders, today reported results for its third quarter ended August 31, 2021. Third quarter net earnings attributable to Lennar in 2021 were $1.4 billion, or $4.52 per diluted share, compared to third quarter net earnings attributable to Lennar in 2020 of $666.4 million, or $2.12 per diluted share.

Stuart Miller, Executive Chairman of Lennar, said, "During the third quarter, our company and the homebuilding industry as a whole continued to experience unprecedented supply chain challenges which we believe will continue into the foreseeable future. As a result, our third quarter deliveries of 15,199 homes were about 600 homes below the low end of our guidance. Additionally, we are adjusting our fourth quarter delivery guidance to, more or less, 18,000 homes, reflecting this supply chain constraint."

Mr. Miller continued, "Despite missing our delivery guidance, new home demand remains strong, even as the market reverts back to traditional seasonality. This is reflected in our 5% year over year sales growth and third quarter homebuilding gross margin of 27.3%, which was the highest quarterly percentage in the Company's history, and a 420 basis point improvement over the prior year. The improvement was driven by price appreciation as revenue per square foot increased 14% while cost per square foot only increased 8%. Our homebuilding S,G&A of 7.0% was the lowest quarterly percentage in the Company's history, even with the delivery shortfall, and reflects continued improvement as we incorporate technology driven innovation across our platform. Accordingly, our net margin was 20.3%, an all-time Company record, and was the primary driver of our third quarter net earnings of $1.0 billion, or $3.27 per diluted share, excluding mark to market gains on our public strategic technology investments."

"During the quarter, several of our strategic technology investments went public. Despite some of our investments currently trading at the lower end of their price ranges, they contributed about $500 million of mark to market gains during the quarter. This resulted in reported GAAP third quarter net earnings of $1.4 billion, or $4.52 per diluted share, compared to $666.4 million, or $2.12 per diluted share in the prior year."

"We ended the quarter with $2.6 billion in cash, no borrowings on our $2.5 billion revolver and a homebuilding debt to capital of 21.2%, an all-time Company low. Our land lighter model resulted in incremental cash flow generation during the third quarter which we used towards an early debt reduction of $300 million and the repurchase of about $250 million of our common stock. These transactions combined with our significant earnings contributed to a return on equity of over 20%."

Rick Beckwitt, Co-Chief Executive Officer and Co-President of Lennar, said, "Our third quarter community count ended flat year over year primarily due to land supply chain challenges as approvals for permits and entitlements have also been delayed. As a result, we believe our year end community count growth will be closer to 7% than our originally targeted 10% growth. However, we are still making excellent progress on our land light strategy as evidenced by our years owned supply of homesites improving to 3.3 years at the end of the third quarter from 3.8 years at last year's third quarter, and our controlled homesite percentage increasing to 53% from 35% for those same periods." 

Jon Jaffe, Co-Chief Executive Officer and Co-President of Lennar, said, "During the quarter, our homebuilding machine continued to be laser focused on production, managing carefully through the rapidly changing supply chain issues as they arose. Although supply chain issues are expected to continue, our long-standing Builder of Choice position and Everything's Included® business model should help to lessen the impact of these challenges. With that said, we also increased our quarterly starts pace to 4.9 homes per community in the third quarter from 4.2 homes per community last year, which will facilitate our growth expectations for 2022."

Mr. Miller concluded, "The housing market has proven to be strong in the current environment as demand continues to outstrip limited supply. Accordingly, both limited supply and production will prevent excess production and extend the strong housing market conditions. As we look ahead to our fourth quarter and consider the industry supply chain issues already noted, we expect to deliver about 18,000 homes while we expect homebuilding gross margins to be about 28.0%. With an excellent balance sheet and continued execution of our core operating strategies, we are extremely well positioned to end 2021 on a very strong note."

RESULTS OF OPERATIONS
THREE MONTHS ENDED AUGUST 31, 2021 COMPARED TO
THREE MONTHS ENDED AUGUST 31, 2020

Homebuilding

Revenues from home sales increased 19% in the third quarter of 2021 to $6.5 billion from $5.5 billion in the third quarter of 2020. Revenues were higher primarily due to a 10% increase in the number of home deliveries and an 8% increase in the average sales price. New home deliveries increased to 15,199 homes in the third quarter of 2021 from 13,842 homes in the third quarter of 2020. The average sales price of homes delivered was $428,000 in the third quarter of 2021, compared to $396,000 in the third quarter of 2020.

Gross margin on home sales were $1.8 billion, or 27.3%, in the third quarter of 2021, compared to $1.3 billion, or 23.1%, in the third quarter of 2020. The gross margin percentage on home sales increased primarily as a result of price appreciation as the increase in revenue per square foot outpaced the increase in cost per square foot.

Selling, general and administrative expenses were $453.7 million in the third quarter of 2021, compared to $435.9 million in the third quarter of 2020. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 7.0% in the third quarter of 2021, from 8.0% in the third quarter of 2020. This was the lowest percentage for a quarter in the Company's history primarily due to a decrease in broker commissions and benefits of the Company's technology efforts.

Financial Services

Operating earnings for the Financial Services segment were $111.9 million in the third quarter of 2021, compared to $135.1 million in the third quarter of 2020. The decrease in operating earnings was primarily due to lower mortgage net margins driven by an increase in competition. This was partially offset by an increase in title operating earnings due to higher volume and an increase in profit per transaction derived from technology initiatives.

Other Ancillary Businesses

Operating loss for the Multifamily segment was $9.4 million in the third quarter of 2021, compared to $5.1 million in the third quarter of 2020. Operating earnings for the Lennar Other segment was $492.0 million in the third quarter of 2021, compared to $8.0 million in the third quarter of 2020. In the third quarter of 2021, the Company recorded mark to market gains on its investments in newly public companies (Hippo, SmartRent and Blend) of $433 million and on its current investments (Opendoor and Sunnova) of $61 million.

RESULTS OF OPERATIONS
NINE MONTHS ENDED AUGUST 31, 2021 COMPARED TO
NINE MONTHS ENDED AUGUST 31, 2020

Homebuilding

Revenues from home sales increased 20% in the nine months ended August 31, 2021 to $17.4 billion from $14.5 billion in the nine months ended August 31, 2020. Revenues were higher primarily due to a 14% increase in the number of home deliveries and a 5% increase in the average sales price. New home deliveries increased to 42,006 homes in the nine months ended August 31, 2021 from 36,835 homes in the nine months ended August 31, 2020. The average sales price of homes delivered was $414,000 in the nine months ended August 31, 2021, compared to $395,000 in the nine months ended August 31, 2020.

Gross margin on home sales were $4.6 billion, or 26.2%, in the nine months ended August 31, 2021, compared to $3.2 billion or 21.8%, in the nine months ended August 31, 2020. The gross margin percentage on home sales increased primarily as a result of price appreciation as the increase in revenue per square foot outpaced the increase in cost per square foot. Gross margin on land sales in the nine months ended August 31, 2021 was $17.9 million, compared to a loss of $21.9 million in the nine months ended August 31, 2020. The loss in the nine months ended August 31, 2020 was primarily due to a write-off of costs in the second quarter of 2020 as a result of Lennar not moving forward with a naval base development in Concord, California, northeast of San Francisco.

Selling, general and administrative expenses were $1.3 billion in the nine months ended August 31, 2021, compared to $1.2 billion in the nine months ended August 31, 2020. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 7.6% in the nine months ended August 31, 2021, from 8.4% in the nine months ended August 31, 2020. The improvement was primarily due to a decrease in broker commissions and benefits of the Company's technology efforts.

Financial Services

Operating earnings for the Financial Services segment were $379.3 million in the nine months ended August 31, 2021, compared to $343.8 million in the nine months ended August 31, 2020 (which included $329.7 million operating earnings and an add back of $14.1 million net loss attributable to noncontrolling interests). The nine months ended August 31, 2020 included a $61.4 million gain on the deconsolidation of a previously consolidated entity. Excluding this gain, the improvement in operating earnings was primarily due to an increase in volume and margin in the mortgage and title businesses.

Other Ancillary Businesses

Operating earnings for the Multifamily segment were $12.1 million in the nine months ended August 31, 2021, compared to an operating loss of $4.0 million in the nine months ended August 31, 2020. Operating earnings for the Lennar Other segment were $909.2 million in the nine months ended August 31, 2021, compared to an operating loss of $9.1 million in the nine months ended August 31, 2020. The operating earnings for the nine months ended August 31, 2021 was primarily due to mark to market gains on strategic investments that went public during the nine months ended August 31, 2021 (Opendoor, Sunnova, Hippo, SmartRent and Blend) and the sale of our solar business to Sunnova.

Tax Rate

For the nine months ended August 31, 2021 and 2020, the Company had a tax provision of $975.4 million and $382.5 million, respectively, which resulted in an overall effective income tax rate of 23.1% and 19.5%, respectively. In the nine months ended August 31, 2021, the overall effective income tax rate was higher primarily due to the extension of the new energy efficient home tax credit during the first quarter of 2020.

Debt Transaction

During the third quarter of 2021, the Company retired $300 million aggregate principal amount of its 6.25% senior notes due December 2021.

Share Repurchases

During the third quarter of 2021, the Company repurchased a total of 2.5 million shares of its Class A common stock for $246.4 million at an average per share price of $98.53. For the nine months ended August 31, 2021, the Company repurchased a total of 4.0 million shares of its Class A common stock for $388.0 million at an average per share price of $96.73.

Liquidity

At August 31, 2021, the Company had $2.6 billion of Homebuilding cash and cash equivalents and no borrowings under its $2.5 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 fourth quarter of 2021:

New Orders	15,200 - 15,400
Deliveries	About 18,000
Average Sales Price	About $445,000
Gross Margin % on Home Sales	About 28.0%
S,G&A as a % of Home Sales	About 6.7%
Financial Services Operating Earnings	$95 million - $105 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 consideration given to the 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; slowdowns in real estate markets in regions where we have significant Homebuilding or Multifamily development activities; supply shortages and increased costs related to construction materials and labor; cost increases related to real estate taxes and insurance; reduced availability of mortgage financing, increased interest rates or increased competition in the mortgage industry; reductions in the market value of the Company's investments in public companies; 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 and our planned spin-off of certain businesses; 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, 2020. 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 third quarter earnings will be held at 11:00 a.m. Eastern Time on Tuesday, September 21, 2021. 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 203-369-3035 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							Nine Months Ended
	August 31,							August 31,
	2021				2020			2021			2020
Revenues:
Homebuilding	$	6,558,509			5,505,120			17,529,606			14,626,720
Financial Services	206,973				237,068			669,789			631,992
Multifamily	167,921				115,170			476,837			370,904
Lennar Other	8,000				12,896			20,884			33,348
Total revenues	$	6,941,403			5,870,254			18,697,116			15,662,964
Homebuilding operating earnings	$	1,329,833			813,744			3,275,488			1,905,503
Financial Services operating earnings	112,083				135,079			379,610			329,722
Multifamily operating earnings (loss)	(9,393)				(5,148)			12,130			(4,001)
Lennar Other operating earnings (loss)	491,972				7,999			909,221			(9,123)
Corporate general and administrative expenses	(94,942)				(85,998)			(296,190)			(246,815)
Charitable foundation contribution	(15,199)				(6,663)			(42,006)			(16,144)
Earnings before income taxes	1,814,354				859,013			4,238,253			1,959,142
Provision for income taxes	(405,136)				(189,690)			(975,354)			(382,498)
Net earnings (including net earnings (loss) attributable to noncontrolling interests)	1,409,218				669,323			3,262,899			1,576,644
Less: Net earnings (loss) attributable to noncontrolling   interests	2,330				2,905			23,279			(5,632)
Net earnings attributable to Lennar	$	1,406,888			666,418			3,239,620			1,582,276
Average shares outstanding:
Basic	307,296				308,889			308,403			309,492
Diluted	307,296				308,890			308,403			309,493
Earnings per share:
Basic	$	4.52			2.13			10.37			5.05
Diluted	$	4.52			2.12			10.36			5.03
Supplemental information:
Interest incurred (1)	$	68,059			88,149			210,575			272,347
EBIT (2):
Net earnings attributable to Lennar	$	1,406,888			666,418			3,239,620			1,582,276
Provision for income taxes	405,136				189,690			975,354			382,498
Interest expense included in:
Costs of homes sold	85,180				93,124			248,888			247,644
Costs of land sold	1,093				1,035			2,285			1,567
Homebuilding other expense, net	4,928				5,478			15,128			17,155
Total interest expense	91,201				99,637			266,301			266,367
EBIT	$	1,903,225			955,745			4,481,275			2,231,141

(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							Nine Months Ended
	August 31,							August 31,
	2021				2020			2021			2020
Homebuilding revenues:
Sales of homes	$	6,505,708			5,467,364			17,377,353			14,533,212
Sales of land	45,055				34,323			131,483			81,023
Other homebuilding	7,746				3,433			20,770			12,485
Total homebuilding revenues	6,558,509				5,505,120			17,529,606			14,626,720
Homebuilding costs and expenses:
Costs of homes sold	4,732,403				4,204,814			12,820,638			11,359,364
Costs of land sold	39,378				32,395			113,545			102,899
Selling, general and administrative	453,716				435,949			1,319,116			1,222,032
Total homebuilding costs and expenses	5,225,497				4,673,158			14,253,299			12,684,295
Homebuilding net margins	1,333,012				831,962			3,276,307			1,942,425
Homebuilding equity in earnings (loss) from unconsolidated   entities	2,391				(6,431)			(3,862)			(20,077)
Homebuilding other income (expense), net	(5,570)				(11,787)			3,043			(16,845)
Homebuilding operating earnings	$	1,329,833			813,744			3,275,488			1,905,503
Financial Services revenues	$	206,973			237,068			669,789			631,992
Financial Services costs and expenses	94,890				101,989			290,179			363,688
Financial Services gain on deconsolidation	—				—			—			61,418
Financial Services operating earnings	$	112,083			135,079			379,610			329,722
Multifamily revenues	$	167,921			115,170			476,837			370,904
Multifamily costs and expenses	174,410				118,786			474,389			379,607
Multifamily equity in earnings (loss) from unconsolidated entities   and other gain	(2,904)				(1,532)			9,682			4,702
Multifamily operating earnings (loss)	$	(9,393)			(5,148)			12,130			(4,001)
Lennar Other revenues	$	8,000			12,896			20,884			33,348
Lennar Other costs and expenses	9,010				2,062			18,994			3,564
Lennar Other equity in earnings (loss) from unconsolidated entities   and other income (expense), net	(2,220)				(2,835)			59,954			(38,907)
Lennar Other realized and unrealized gain (loss) (1)	495,202				—			847,377			—
Lennar Other operating earnings (loss)	$	491,972			7,999			909,221			(9,123)
(1)     The following is a detail of Lennar Other realized and unrealized gain (loss):
	Three Months Ended							Nine Months Ended
	August 31,							August 31,
	2021				2020			2021			2020
Hippo (HIPO) mark to market	$	324,855			—			324,855			—
SmartRent (SMRT) mark to market	100,793				—			100,793			—
Opendoor (OPEN) mark to market	37,301				—			272,756			—
Sunnova (NOVA) mark to market	23,870				—			(14,465)			—
Blend Labs (BLND) mark to market	6,852				—			6,852			—
Gain on sale of solar business	1,531				—			153,006			—
Other realized gain	—				—			3,580			—
	$	495,202			—			847,377			—

 

LENNAR CORPORATION AND SUBSIDIARIES
Summary of Deliveries, New Orders and Backlog
(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, Idaho, Nevada, Oregon, Utah and Washington
Other: Urban divisions

	For the Three Months Ended August 31,
	2021			2020			2021				2020			2021				2020
Deliveries:	Homes						Dollar Value							Average Sales Price
East	4,568			4,309			$	1,660,357			1,488,022			$	363,000			345,000
Central	3,211			2,767			1,262,540				1,062,799			393,000				384,000
Texas	2,747			2,598			818,869				719,467			298,000				277,000
West	4,669			4,165			2,764,856				2,205,235			592,000				529,000
Other	4			3			4,141				2,590			1,035,000				863,000
Total	15,199			13,842			$	6,510,763			5,478,113			$	428,000			396,000

Of the total homes delivered listed above, 15 homes with a dollar value of $5.1 million and an average sales price of $337,000 represent home deliveries from unconsolidated entities for the three months ended August 31, 2021, compared to 33 home deliveries with a dollar value of $10.7 million and an average sales price of $326,000 for the three months ended August 31, 2020.

	At August 31,						For the Three Months Ended August 31,
	2021			2020			2021			2020			2021				2020			2021				2020
New Orders:	Active Communities						Homes						Dollar Value							Average Sales Price
East	329			340			5,308			4,655			$	2,100,466			1,631,349			$	396,000			350,000
Central	281			297			3,189			3,375			1,352,814				1,298,792			424,000				385,000
Texas	233			217			3,203			2,746			988,644				743,553			309,000				271,000
West	350			341			4,571			4,786			3,006,501				2,580,328			658,000				539,000
Other	3			3			6			2			5,974				1,452			996,000				726,000
Total	1,196			1,198			16,277			15,564			$	7,454,399			6,255,474			$	458,000			402,000

Of the total homes listed above, 35 homes with a dollar value of $13.1 million and an average sales price of $375,000 represent homes in four active communities from unconsolidated entities for the three months ended August 31, 2021, compared to 34 homes with a dollar value of $9.7 million and an average sales price of $286,000 in four active communities for the three months ended August 31, 2020.

	For the Nine Months Ended August 31,
	2021			2020			2021				2020			2021				2020
Deliveries:	Homes						Dollar Value							Average Sales Price
East	12,968			11,511			$	4,572,592			3,924,289			$	353,000			341,000
Central	8,391			7,389			3,282,168				2,833,745			391,000				384,000
Texas	7,843			6,637			2,245,671				1,877,374			286,000				283,000
West	12,793			11,273			7,284,927				5,894,183			569,000				523,000
Other	11			25			10,645				23,642			968,000				946,000
Total	42,006			36,835			$	17,396,003			14,553,233			$	414,000			395,000

Of the total homes delivered listed above, 58 homes with a dollar value of $18.7 million and an average sales price of $322,000 represent home deliveries from unconsolidated entities for the nine months ended August 31, 2021, compared to 60 home deliveries with a dollar value of $20.0 million and an average sales price of $334,000 for the nine months ended August 31, 2020.

	For the Nine Months Ended August 31,
	2021			2020			2021				2020			2021				2020
New Orders:	Homes						Dollar Value							Average Sales Price
East	15,473			12,512			$	5,788,506			4,266,221			$	374,000			341,000
Central	9,931			8,741			4,086,170				3,341,959			411,000				382,000
Texas	9,228			7,327			2,800,826				1,986,770			304,000				271,000
West	14,358			12,359			8,871,465				6,508,509			618,000				527,000
Other	14			16			14,095				15,189			1,007,000				949,000
Total	49,004			40,955			$	21,561,062			16,118,648			$	440,000			394,000

Of the total homes listed above, 102 homes with a dollar value of $36.7 million and an average sales price of $359,000 represent homes from unconsolidated entities for the nine months ended August 31, 2021, compared to 85 homes with a dollar value of $26.8 million and an average sales price of $316,000 for the nine months ended August 31, 2020.

	At August 31,
	2021			2020			2021				2020			2021				2020
Backlog:	Homes						Dollar Value							Average Sales Price
East	8,518			6,691			$	3,526,849			2,368,300			$	414,000			354,000
Central	5,911			4,502			2,566,174				1,752,180			434,000				389,000
Texas	4,208			2,860			1,379,740				822,734			328,000				288,000
West	7,177			5,644			4,499,969				2,922,743			627,000				518,000
Other	5			—			5,298				—			1,060,000				—
Total	25,819			19,697			$	11,978,030			7,865,957			$	464,000			399,000

Of the total homes in backlog listed above, 82 homes with a backlog dollar value of $29.5 million and an average sales price of $359,000 represent the backlog from unconsolidated entities at August 31, 2021, compared to 56 homes with a backlog dollar value of $17.0 million and an average sales price of $303,000 at August 31, 2020.

 

LENNAR CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except per share amounts) (unaudited)
	August 31,				November 30,
	2021				2020
ASSETS
Homebuilding:
Cash and cash equivalents	$	2,623,320			2,703,986
Restricted cash	21,519				15,211
Receivables, net	369,492				298,671
Inventories:
Finished homes and construction in progress	10,891,592				8,593,399
Land and land under development	7,210,032				7,495,262
Consolidated inventory not owned	1,004,319				836,567
Total inventories	19,105,943				16,925,228
Investments in unconsolidated entities	983,429				953,177
Goodwill	3,442,359				3,442,359
Other assets	1,034,691				1,190,793
	27,580,753				25,529,425
Financial Services	2,282,873				2,708,118
Multifamily	1,226,692				1,175,908
Lennar Other	1,653,872				521,726
Total assets	$	32,744,190			29,935,177
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable	$	1,230,577			1,037,338
Liabilities related to consolidated inventory not owned	841,539				706,691
Senior notes and other debts payable, net	5,542,513				5,955,758
Other liabilities	2,716,872				2,225,864
	10,331,501				9,925,651
Financial Services	1,272,218				1,644,248
Multifamily	259,145				252,911
Lennar Other	101,787				12,966
Total liabilities	11,964,651				11,835,776
Stockholders' equity:
Preferred stock	—				—
Class A common stock of $0.10 par value	30,050				29,894
Class B common stock of $0.10 par value	3,944				3,944
Additional paid-in capital	8,778,609				8,676,056
Retained earnings	13,570,626				10,564,994
Treasury stock	(1,731,741)				(1,279,227)
Accumulated other comprehensive loss	(1,300)				(805)
Total stockholders' equity	20,650,188				17,994,856
Noncontrolling interests	129,351				104,545
Total equity	20,779,539				18,099,401
Total liabilities and equity	$	32,744,190			29,935,177

 

LENNAR CORPORATION AND SUBSIDIARIES Supplemental Data (Dollars in thousands) (unaudited)
	August 31,				November 30,			August 31,
	2021				2020			2020
Homebuilding debt	$	5,542,513			5,955,758			7,180,274
Stockholders' equity	20,650,188				17,994,856			17,172,103
Total capital	$	26,192,701			23,950,614			24,352,377
Homebuilding debt to total capital	21.2		%		24.9	%		29.5	%
Homebuilding debt	$	5,542,513			5,955,758			7,180,274
Less: Homebuilding cash and cash equivalents	2,623,320				2,703,986			1,966,796
Net homebuilding debt	$	2,919,193			3,251,772			5,213,478
Net homebuilding debt to total capital (1)	12.4		%		15.3	%		23.3	%

(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 earnings per share for Q3 2021?

Lennar's earnings per share for Q3 2021 were $4.52.

How many homes did Lennar deliver in Q3 2021?

Lennar delivered 15,199 homes in Q3 2021.

What is Lennar's stock symbol?

Lennar's stock symbols are LEN and LEN.B.

What was Lennar's revenue in Q3 2021?

Lennar reported revenues of $6.9 billion in Q3 2021.

How much cash did Lennar have at the end of Q3 2021?

Lennar had $2.6 billion in cash at the end of Q3 2021.