MIAMI, June 24, 2015 /PRNewswire/ --
- Net earnings of $183.0
million, or $0.79 per diluted
share, compared to net earnings of $137.7
million, or $0.61 per diluted
share
- Deliveries of 6,015 homes – up 21%
- New orders of 7,271 homes – up 18%; new orders dollar value
of $2.6 billion – up
28%
- Backlog of 8,073 homes – up 18%; backlog dollar value of
$2.9 billion – up 23%
- Revenues of $2.4 billion – up
32%
- Lennar Homebuilding operating earnings of $292.8 million, compared to $234.5 million – up 25%:
- Operating metrics in this segment exceeded the Company's
previously stated goals:
- Gross margin on home sales of 23.8%
- S,G&A expenses as a % of revenues from home sales of
10.0%
- Operating margin on home sales of 13.8%
- Lennar Financial Services operating earnings of $39.1 million, compared to $18.3 million
- Rialto operating earnings (net of noncontrolling interests)
of $7.6 million, compared to
$13.4 million
- Lennar Multifamily operating loss of $8.7 million, compared to $7.2 million
- Lennar Homebuilding cash and cash equivalents of
$639 million
- Increased the credit facility to $1.6
billion and reduced the interest rate
- Issued $500 million of 4.75%
senior notes due May 2025
- Lennar Homebuilding debt to total capital, net of cash and
cash equivalents, of 47.5%
Lennar Corporation (NYSE: LEN and LEN.B), one
of the nation's largest homebuilders, today reported results
for its second quarter ended May 31, 2015. Second quarter net
earnings attributable to Lennar in 2015 were $183.0 million, or $0.79 per diluted share, compared to second
quarter net earnings attributable to Lennar in 2014 of $137.7 million, or $0.61 per diluted share.
Stuart Miller, Chief Executive
Officer of Lennar Corporation, said, "The homebuilding market
continued its steady improvement throughout our second quarter.
Driven by higher wages and employment, reasonable affordability
levels, supply shortages and favorable monthly payment comparisons
to rentals, the homebuilding market is well positioned for
multi-year growth ahead."
Mr. Miller continued, "Our core homebuilding business had gross
and operating margins of 23.8% and 13.8% in the second quarter,
respectively, which exceeded our previously stated guidance. Our
average sales price of homes delivered increased to $348,000, the highest in the Company's history,
from $326,000 in the first quarter of
2015 and $322,000 in the second
quarter of 2014. Our new home deliveries and new order sales dollar
value increased 21% and 28% in the second quarter, respectively,
compared to the same period last year. Our sales backlog dollar
value increased 23% from the second quarter of last year to
approximately $2.9 billion, keeping
us well positioned going forward.
Complementing our homebuilding business, our Financial Services
segment continued its strong performance by increasing its earnings
to $39.1 million in the second
quarter from $18.3 million in the
second quarter of 2014. Our Financial Services business benefited
from a stronger refinance market and an increase in purchase volume
as a result of increased Lennar home deliveries and an expanded
retail presence.
As the mortgage market remains constrained, our extensive
pipeline of rental properties continues to benefit from increasing
rental rates and historically high occupancy levels. While our
maturing rental business has not yet turned a consistent profit, we
believe our pipeline of future projects of $6 billion at quarter-end positions this segment
to become a meaningful contributor to our earnings in the
future.
Our Rialto segment generated $7.6
million of income and continues to emerge as a best-in-class
asset manager. Rialto's fund investments are poised for strong
long-term returns and its mortgage conduit business continues to
produce steady, current earnings."
Mr. Miller concluded, "We continue to execute our carefully
crafted strategy across all of our businesses. While our
homebuilding business continues to be the primary driver of our
quarterly earnings, we are in an excellent position across our
multiple platforms and anticipate that our ancillary businesses
will continue to further define themselves going forward."
RESULTS OF OPERATIONS
THREE MONTHS ENDED MAY
31, 2015 COMPARED TO
THREE MONTHS ENDED
MAY 31, 2014
Lennar Homebuilding
Revenues from home sales increased 30% in the second quarter of
2015 to $2.1 billion from
$1.6 billion in the second quarter of
2014. Revenues were higher primarily due to a 20% increase in the
number of home deliveries, excluding unconsolidated entities, and
an 8% increase in the average sales price of homes delivered. New
home deliveries, excluding unconsolidated entities, increased to
5,989 homes in the second quarter of 2015 from 4,976 homes in the
second quarter of 2014. There was an increase in home deliveries in
all of the Company's Homebuilding segments and Homebuilding Other.
The average sales price of homes delivered increased to
$348,000 in the second quarter of
2015 from $322,000 in the second
quarter of 2014. Sales incentives offered to homebuyers were
$21,500 per home delivered in the
second quarter of 2015, or 5.8% as a percentage of home sales
revenue, compared to $20,300 per home
delivered in the second quarter of 2014, or 5.9% as a percentage of
home sales revenue, and $21,800 per
home delivered in the first quarter of 2015, or 6.3% as a
percentage of home sales revenue.
Gross margins on home sales were $495.9
million, or 23.8%, in the second quarter of 2015, compared
to $409.6 million, or 25.5%, in the
second quarter of 2014. Gross margin percentage on home sales
decreased primarily due to an increase in land costs, partially
offset by an increase in the average sales price of homes
delivered. Gross margin on home sales in the second quarter of 2014
included $9.6 million of insurance
recoveries and other nonrecurring items, which represented 60 basis
points in that period.
Gross profits on land sales were $3.5
million in the second quarter of 2015, compared to
$5.6 million in the second quarter of
2014.
Selling, general and administrative expenses were $209.0 million in the second quarter of 2015,
compared to $173.1 million in the
second quarter of 2014. As a percentage of revenues from home
sales, selling, general and administrative expenses improved to
10.0% in the second quarter of 2015, from 10.8% in the second
quarter of 2014 primarily due to improved operating leverage as a
result of an increase in home deliveries.
Lennar Homebuilding equity in earnings from unconsolidated
entities was $6.5 million in the
second quarter of 2015, compared to $0.4
million in the second quarter of 2014. In the second quarter
of 2015, Lennar Homebuilding equity in earnings from unconsolidated
entities included $11.6 million
primarily related to the sale of a commercial property and
homesites to third parties by El Toro, one of the Company's
unconsolidated entities, partially offset by the Company's share of
net operating losses of various Lennar Homebuilding unconsolidated
entities.
Lennar Homebuilding other income (expense), net, totaled
($0.2) million in the second quarter
of 2015, compared to $2.3 million in
the second quarter of 2014.
Lennar Homebuilding interest expense was $57.7 million in the second quarter of 2015
($53.2 million was included in cost
of homes sold, $0.6 million in cost
of land sold and $3.8 million in
other interest expense), compared to $49.2
million in the second quarter of 2014 ($38.6 million was included in cost of homes sold,
$0.3 million in cost of land sold and
$10.3 million in other interest
expense). Interest expense increased primarily due to an increase
in the Company's outstanding debt and an increase in home
deliveries, partially offset by an increase in qualifying assets
eligible for interest capitalization and lower borrowing costs.
Lennar Financial Services
Operating earnings for the Lennar Financial Services segment
were $39.1 million in the second
quarter of 2015, compared to $18.3
million in the second quarter of 2014. The increase in
profitability was primarily due to an increase in mortgage
originations driven by a stronger refinance market and an increase
in purchase volume as a result of increased Lennar home deliveries
and an expanded retail presence. The increase in volume also
benefited the title operations.
Rialto
Operating earnings for the Rialto segment were $7.6 million in the second quarter of 2015 (which
included $6.9 million of operating
earnings and an add back of $0.7
million of net loss attributable to noncontrolling
interests), compared to operating earnings of $13.4 million (which was comprised of a
$3.7 million operating loss and an
add back of $17.1 million of net loss
attributable to noncontrolling interests) in the second quarter of
2014.
Revenues in this segment were $67.9
million in the second quarter of 2015, compared to
$54.4 million in the second quarter
of 2014. Revenues increased primarily due to an increase in
securitization revenue and interest income from Rialto Mortgage
Finance ("RMF") and the receipt of $4.8
million of advanced distributions with regard to Rialto's
carried interests in Rialto Real Estate Fund, LP ("Fund I") and
Rialto Real Estate Fund II, LP ("Fund II") in order to cover income
tax obligations resulting from allocations of taxable income due to
Rialto's carried interests in these funds. This increase was
partially offset by a decrease in interest income as a result of a
decrease in the portfolio of loans Rialto owns because of loan
collections, resolutions and real estate owned ("REO")
foreclosures.
Expenses in this segment were $67.5
million in the second quarter of 2015, compared to
$79.6 million in the second quarter
of 2014. Expenses decreased primarily due to a decrease in loan
impairments of $32.3 million,
partially offset by an increase in other general and administrative
expenses and RMF securitization expenses.
Rialto equity in earnings from unconsolidated entities was
$7.3 million and $17.9 million in the second quarter of 2015 and
2014, respectively, primarily related to the segment's share of
earnings from the Rialto real estate funds. The decrease in equity
in earnings was related to marking up certain assets in the Rialto
real estate funds to a lesser degree in the second quarter of 2015
than in the same period last year.
In the second quarter of 2015, Rialto other expense, net, was
$0.9 million, which consisted
primarily of expenses related to owning and maintaining REO,
$2.4 million of impairments on REO
and other expenses, partially offset by net realized gains on the
sale of REO of $4.5 million and
rental and other income. In the second quarter of 2014, Rialto
other income, net, was $3.6 million,
which consisted primarily of net realized gains on the sale of REO
of $14.2 million and rental and other
income, partially offset by expenses related to owning and
maintaining REO, $1.2 million of
impairments on REO and other expenses.
Lennar Multifamily
Operating loss for the Lennar Multifamily segment was
$8.7 million in the second quarter of
2015, compared to $7.2 million in the
second quarter of 2014. In both the second quarter of 2015 and
2014, the operating loss primarily related to general and
administrative expenses, partially offset by management fee
income.
Corporate General and Administrative Expenses
Corporate general and administrative expenses were $50.2 million, or 2.1% as a percentage of total
revenues, in the second quarter of 2015, compared to $38.3 million, or 2.1% as a percentage of total
revenues, in the second quarter of 2014.
Noncontrolling Interests
Net earnings (loss) attributable to noncontrolling interests
were $1.6 million and ($15.1) million in the second quarter of 2015 and
2014, respectively. Net earnings attributable to noncontrolling
interests during the second quarter of 2015 were primarily
attributable to a strategic transaction by one of Lennar
Homebuilding's consolidated joint ventures that impacted
noncontrolling interest by $2.3
million, partially offset by a net loss related to the
FDIC's interest in the portfolio of real estate loans that the
Company acquired in partnership with the FDIC. Net loss
attributable to noncontrolling interests during the second quarter
of 2014 was primarily related to the FDIC's interest in the
portfolio of real estate loans that the Company acquired in
partnership with the FDIC.
SIX MONTHS ENDED MAY
31 2015 COMPARED TO
SIX MONTHS ENDED MAY 31, 2014
Lennar Homebuilding
Revenues from home sales increased 27% in the six months ended
May 31, 2015 to $3.5 billion from $2.7
billion in 2014. Revenues were higher primarily due to a 20%
increase in the number of home deliveries, excluding unconsolidated
entities, and a 6% increase in the average sales price of homes
delivered. New home deliveries, excluding unconsolidated entities,
increased to 10,290 homes in the six months ended May 31, 2015 from 8,573 homes in the six months
ended May 31, 2014. There was an
increase in home deliveries in all of the Company's Homebuilding
segments and Homebuilding Other. The average sales price of homes
delivered increased to $339,000 in
the six months ended May 31, 2015
from $320,000 in the six months ended
May 31, 2014. Sales incentives
offered to homebuyers were $21,600
per home delivered in the six months ended May 31, 2015, or 6.0% as a percentage of home
sales revenue, compared to $20,700
per home delivered in the six months ended May 31, 2014, or 6.1% as a percentage of home
sales revenue.
Gross margins on home sales were $820.6
million, or 23.5%, in the six months ended May 31, 2015, compared to $695.7 million, or 25.3%, in the six months ended
May 31, 2014. Gross margin percentage
on home sales decreased primarily due to an increase in land costs,
partially offset by an increase in the average sales price of homes
delivered. Gross margin on home sales in the six months ended
May 31, 2014 included $15.1 million of insurance recoveries and other
nonrecurring items, which represented 60 basis points in that
period.
Gross profits on land sales totaled $15.6
million in the six months ended May
31, 2015, compared to $21.7
million in the six months ended May
31, 2014.
Selling, general and administrative expenses were $369.4 million in the six months ended
May 31, 2015, compared to
$308.2 million in the six months
ended May 31, 2014. As a percentage
of revenues from home sales, selling, general and administrative
expenses improved to 10.6% in the six months ended May 31, 2015, from 11.2% in the six months ended
May 31, 2014 primarily due to
improved operating leverage as a result of an increase in home
deliveries as well as a decrease in insurance reserves.
Lennar Homebuilding equity in earnings from unconsolidated
entities was $35.4 million in the six
months ended May 31, 2015, compared
to $5.4 million in the six months
ended May 31, 2014. In the six months
ended May 31, 2015, Lennar
Homebuilding equity in earnings from unconsolidated entities
included $43.0 million primarily
related to sales of approximately 660 homesites and a commercial
property to third parties by El Toro, one of the Company's
unconsolidated entities, partially offset by the Company's share of
net operating losses of various Lennar Homebuilding unconsolidated
entities. In the six months ended May 31,
2014, Lennar Homebuilding equity in earnings from
unconsolidated entities included $4.7
million primarily related to third-party land sales by one
of the Company's unconsolidated entities.
Lennar Homebuilding other income, net, totaled $6.1 million in the six months ended May 31, 2015, compared to $5.2 million in the six months ended May 31, 2014.
Lennar Homebuilding interest expense was $95.7 million in the six months ended
May 31, 2015 ($86.8 million was included in cost of homes sold,
$1.0 million in cost of land sold and
$7.9 million in other interest
expense), compared to $90.2 million
in the six months ended May 31, 2014
($65.0 million was included in cost
of homes sold, $2.2 million in cost
of land sold and $23.0 million in
other interest expense). Interest expense increased primarily due
to an increase in the Company's outstanding debt and an increase in
home deliveries, partially offset by an increase in qualifying
assets eligible for interest capitalization and lower borrowing
costs.
Lennar Financial Services
Operating earnings for the Lennar Financial Services segment
were $54.6 million in the six months
ended May 31, 2015, compared to
$22.8 million in the six months ended
May 31, 2014. The increase in
profitability was primarily due to an increase in mortgage
originations driven by a stronger refinance market and an increase
in purchase volume as a result of increased Lennar home deliveries
and an expanded retail presence. The increase in volume also
benefited the title operations.
Rialto
Operating earnings for the Rialto segment were $12.2 million in the six months ended
May 31, 2015 (which included
$9.7 million of operating earnings
and an add back of $2.5 million of
net loss attributable to noncontrolling interests), compared to
operating earnings of $15.9 million
(which is comprised of a $0.2 million
operating loss and an add back of $16.1
million of net loss attributable to noncontrolling
interests) in the six months ended May 31,
2014.
Revenues in this segment were $109.1
million in the six months ended May
31, 2015, compared to $101.3
million in the six months ended May
31, 2014. Revenues increased primarily due to an increase in
securitization revenue and interest income from RMF and the receipt
of $11.3 million of advanced
distributions with regard to Rialto's carried interests in Fund I
and Fund II in order to cover income tax obligations resulting from
allocations of taxable income due to Rialto's carried interests in
these funds. This increase was partially offset by a decrease in
interest income as a result of a decrease in the portfolio of loans
Rialto owns because of loan collections, resolutions and REO
foreclosures.
Expenses in this segment were $108.3
million in the six months ended May
31, 2015, compared to $127.2
million in the six months ended May
31, 2014. Expenses decreased primarily due to a decrease in
loan impairments of $37.8 million,
partially offset by an increase in other general and administrative
expenses, RMF securitization expenses and interest expense.
Rialto equity in earnings from unconsolidated entities was
$10.0 million and $23.3 million in the six months ended
May 31, 2015 and 2014, respectively,
primarily related to the segment's share of earnings from the
Rialto real estate funds. The decrease in equity in earnings was
related to marking up certain assets in the Rialto real estate
funds to a lesser degree in the six months ended May 31, 2015 than in the same period last
year.
In the six months ended May 31,
2015, Rialto other expense, net, was $1.1 million, which consisted primarily of
expenses related to owning and maintaining REO, $5.0 million of impairments on REO and other
expenses, partially offset by net realized gains on the sale of REO
of $7.7 million and rental and other
income. In the six months ended May 31,
2014, Rialto other income, net, was $2.4 million, which consisted primarily of net
realized gains on the sale of REO of $23.7
million and rental and other income, partially offset by
expenses related to owning and maintaining REO, $3.5 million of impairments on REO and other
expenses.
Lennar Multifamily
Operating loss for the Lennar Multifamily segment was
$14.4 million in the six months ended
May 31, 2015, compared to
$13.4 million in the six months ended
May 31, 2014. In both the six months
ended May 31, 2015 and 2014, the
operating loss primarily related to general and administrative
expenses, partially offset by management fee income.
Corporate General and Administrative Expenses
Corporate general and administrative expenses were $93.9 million, or 2.3% as a percentage of total
revenues, in the six months ended May 31,
2015, compared to $76.4
million, or 2.4% as a percentage of total revenues, in the
six months ended May 31, 2014.
Noncontrolling Interests
Net earnings (loss) attributable to noncontrolling interests
were $3.5 million and ($13.3) million in the six months ended
May 31, 2015 and 2014, respectively.
Net earnings attributable to noncontrolling interests during the
six months ended May 31, 2015 were
primarily attributable to a strategic transaction by one of Lennar
Homebuilding's consolidated joint ventures that impacted
noncontrolling interest by $2.3
million and earnings related to consolidated joint ventures.
Net loss attributable to noncontrolling interests during the six
months ended May 31, 2014 were
primarily related to the FDIC's interest in the portfolio of real
estate loans that the Company acquired in partnership with the
FDIC.
OTHER TRANSACTIONS
Credit Facility
In April 2015, the Company amended
its unsecured revolving credit facility (the "Credit Facility") to
reduce the current interest rate on $1.18
billion of the Credit Facility from LIBOR plus 2.00% to
LIBOR plus 1.75%, increase the maximum potential borrowings from
$1.5 billion to $1.6 billion and extend the maturity on
$1.18 billion of the Credit Facility
from June 2018 to June 2019. The $1.6
billion includes a $263
million accordion feature, subject to additional
commitments.
Debt Transactions
In February 2015, the Company
issued an additional $250 million of
its 4.50% senior notes due November
2019. The net proceeds were used for working capital and
general corporate purposes.
In April 2015, the Company issued
$500 million of 4.75% senior notes
due May 2025. The Company used the
net proceeds, together with cash on hand, to retire its
$500 million of 5.60% senior notes
due May 2015 for 100% of the
outstanding principal amount, plus accrued and unpaid interest.
About Lennar
Lennar Corporation, founded in 1954, is one of the nation's
largest builders of quality homes for all generations. The Company
builds affordable, move-up and retirement homes primarily under the
Lennar brand name. Lennar's Financial Services segment provides
mortgage financing, title insurance and closing services for both
buyers of the Company's homes and others. Lennar's Rialto segment
is a vertically integrated asset management platform focused on
investing throughout the commercial real estate capital structure.
Lennar's Multifamily segment is a nationwide developer of
high-quality multifamily rental properties. Previous press releases
and further information about the Company may be obtained at the
"Investor Relations" section of the Company's website,
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 regarding our belief that the
homebuilding market is well positioned
for multi-year growth and our belief regarding the
drivers of such growth, our belief regarding our multifamily
project pipeline and that it positions our Lennar Multifamily
segment to become a meaningful contributor to our earnings in the
future, our belief that Rialto's fund investments are poised for
strong long-term returns and our belief that we are in excellent
positions across all our platforms and that our ancillary
businesses will continue to further define themselves going
forward. 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 in the forward-looking statements.
Important factors that could cause such differences include
increases in operating costs, including costs related to real
estate taxes, construction materials, labor and insurance, and our
ability to manage our cost structure, both in our Lennar
Homebuilding and Lennar Multifamily businesses; a slowdown in the
recovery of real estate markets across the nation, or any downturn
in such markets, including a slowdown or downturn in the
multifamily rental market; unfavorable or unanticipated losses in
legal proceedings that substantially exceed our expectations;
decreased demand for our homes or Lennar Multifamily rental
properties, and our inability to successfully sell our apartments;
natural disasters or catastrophic events for which our insurance
may not provide adequate coverage; a decline in the value of the
land and home inventories we maintain or possible future
write-downs of the carrying value of our real estate assets; the
inability of the Rialto segment to profit from the investments it
makes; reduced availability of mortgage financing and increased
interest rates; 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, 2014. 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 second quarter
earnings will be held at 11:00 a.m. Eastern
Time on Wednesday, June 24,
2015. 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
203-369-3836 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
|
|
Six Months
Ended
|
|
May
31,
|
|
May
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Lennar
Homebuilding
|
$
|
2,115,812
|
|
|
1,634,785
|
|
|
3,557,470
|
|
|
2,866,170
|
|
|
Lennar Financial
Services
|
169,885
|
|
|
111,016
|
|
|
294,712
|
|
|
187,968
|
|
|
Rialto
|
67,931
|
|
|
54,393
|
|
|
109,128
|
|
|
101,348
|
|
|
Lennar
Multifamily
|
38,976
|
|
|
18,551
|
|
|
75,433
|
|
|
26,354
|
|
|
Total
revenues
|
$
|
2,392,604
|
|
|
1,818,745
|
|
|
4,036,743
|
|
|
3,181,840
|
|
|
|
|
|
|
|
|
|
|
Lennar Homebuilding
operating earnings
|
$
|
292,789
|
|
|
234,511
|
|
|
500,433
|
|
|
396,729
|
|
|
Lennar Financial
Services operating earnings
|
39,053
|
|
|
18,293
|
|
|
54,580
|
|
|
22,758
|
|
|
Rialto operating
earnings (loss)
|
6,881
|
|
|
(3,677)
|
|
|
9,689
|
|
|
(173)
|
|
|
Lennar Multifamily
operating loss
|
(8,706)
|
|
|
(7,180)
|
|
|
(14,388)
|
|
|
(13,379)
|
|
|
Corporate general and
administrative expenses
|
(50,207)
|
|
|
(38,317)
|
|
|
(93,861)
|
|
|
(76,429)
|
|
|
Earnings before
income taxes
|
279,810
|
|
|
203,630
|
|
|
456,453
|
|
|
329,506
|
|
|
Provision for income
taxes
|
(95,226)
|
|
|
(81,013)
|
|
|
(154,952)
|
|
|
(126,924)
|
|
|
Net earnings
(including net earnings (loss) attributable to noncontrolling
interests)
|
184,584
|
|
|
122,617
|
|
|
301,501
|
|
|
202,582
|
|
|
Less: Net earnings
(loss) attributable to noncontrolling interests
|
1,568
|
|
|
(15,102)
|
|
|
3,522
|
|
|
(13,254)
|
|
|
Net earnings
attributable to Lennar
|
$
|
183,016
|
|
|
137,719
|
|
|
297,979
|
|
|
215,836
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
202,991
|
|
|
202,000
|
|
|
202,961
|
|
|
201,977
|
|
|
Diluted
|
231,041
|
|
|
228,009
|
|
|
230,679
|
|
|
227,821
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.89
|
|
|
0.67
|
|
|
1.45
|
|
|
1.06
|
|
|
Diluted
(1)
|
$
|
0.79
|
|
|
0.61
|
|
|
1.30
|
|
|
0.95
|
|
|
|
|
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
|
|
|
|
Interest incurred
(2)
|
$
|
76,232
|
|
|
69,682
|
|
|
146,491
|
|
|
135,600
|
|
|
|
|
|
|
|
|
|
|
EBIT
(3):
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Lennar
|
$
|
183,016
|
|
|
137,719
|
|
|
297,979
|
|
|
215,836
|
|
|
Provision for income
taxes
|
95,226
|
|
|
81,013
|
|
|
154,952
|
|
|
126,924
|
|
|
Interest
expense
|
57,678
|
|
|
49,200
|
|
|
95,709
|
|
|
90,184
|
|
|
EBIT
|
$
|
335,920
|
|
|
267,932
|
|
|
548,640
|
|
|
432,944
|
|
|
|
|
(1)
|
Diluted earnings per
share includes an add back of interest of $2.0 million and $4.0
million for both the three and six months ended May 31, 2015 and
2014, respectively, related to the Company's 3.25% convertible
senior notes.
|
|
(2)
|
Amount represents
interest incurred related to Lennar Homebuilding debt.
|
|
(3)
|
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
|
|
Six Months
Ended
|
|
May
31,
|
|
May
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Lennar
Homebuilding revenues:
|
|
|
|
|
|
|
|
|
Sales of
homes
|
$
|
2,081,113
|
|
|
1,605,366
|
|
|
3,484,681
|
|
|
2,745,597
|
|
|
Sales of
land
|
34,699
|
|
|
29,419
|
|
|
72,789
|
|
|
120,573
|
|
|
Total
revenues
|
2,115,812
|
|
|
1,634,785
|
|
|
3,557,470
|
|
|
2,866,170
|
|
|
|
|
|
|
|
|
|
|
Lennar
Homebuilding costs and expenses:
|
|
|
|
|
|
|
|
|
Cost of homes
sold
|
1,585,259
|
|
|
1,195,751
|
|
|
2,664,055
|
|
|
2,049,929
|
|
|
Cost of land
sold
|
31,204
|
|
|
23,786
|
|
|
57,229
|
|
|
98,858
|
|
|
Selling, general and
administrative
|
209,019
|
|
|
173,106
|
|
|
369,373
|
|
|
308,211
|
|
|
Total costs and
expenses
|
1,825,482
|
|
|
1,392,643
|
|
|
3,090,657
|
|
|
2,456,998
|
|
|
Lennar
Homebuilding operating margins
|
290,330
|
|
|
242,142
|
|
|
466,813
|
|
|
409,172
|
|
|
Lennar Homebuilding
equity in earnings from unconsolidated entities
|
6,494
|
|
|
394
|
|
|
35,393
|
|
|
5,384
|
|
|
Lennar Homebuilding
other income (expense), net
|
(217)
|
|
|
2,262
|
|
|
6,116
|
|
|
5,151
|
|
|
Other interest
expense
|
(3,818)
|
|
|
(10,287)
|
|
|
(7,889)
|
|
|
(22,978)
|
|
|
Lennar
Homebuilding operating earnings
|
$
|
292,789
|
|
|
234,511
|
|
|
500,433
|
|
|
396,729
|
|
|
|
|
|
|
|
|
|
|
Lennar Financial
Services revenues
|
$
|
169,885
|
|
|
111,016
|
|
|
294,712
|
|
|
187,968
|
|
|
Lennar Financial
Services costs and expenses
|
130,832
|
|
|
92,723
|
|
|
240,132
|
|
|
165,210
|
|
|
Lennar Financial
Services operating earnings
|
$
|
39,053
|
|
|
18,293
|
|
|
54,580
|
|
|
22,758
|
|
|
|
|
|
|
|
|
|
|
Rialto
revenues
|
$
|
67,931
|
|
|
54,393
|
|
|
109,128
|
|
|
101,348
|
|
|
Rialto costs and
expenses
|
67,506
|
|
|
79,604
|
|
|
108,287
|
|
|
127,180
|
|
|
Rialto equity in
earnings from unconsolidated entities
|
7,328
|
|
|
17,939
|
|
|
9,992
|
|
|
23,293
|
|
|
Rialto other income
(expense), net
|
(872)
|
|
|
3,595
|
|
|
(1,144)
|
|
|
2,366
|
|
|
Rialto operating
earnings (loss)
|
$
|
6,881
|
|
|
(3,677)
|
|
|
9,689
|
|
|
(173)
|
|
|
|
|
|
|
|
|
|
|
Lennar Multifamily
revenues
|
$
|
38,976
|
|
|
18,551
|
|
|
75,433
|
|
|
26,354
|
|
|
Lennar Multifamily
costs and expenses
|
47,260
|
|
|
25,549
|
|
|
89,221
|
|
|
39,476
|
|
|
Lennar Multifamily
equity in loss from unconsolidated entities
|
(422)
|
|
|
(182)
|
|
|
(600)
|
|
|
(257)
|
|
|
Lennar Multifamily
operating loss
|
$
|
(8,706)
|
|
|
(7,180)
|
|
|
(14,388)
|
|
|
(13,379)
|
|
|
LENNAR CORPORATION
AND SUBSIDIARIES
|
|
Summary of Deliveries
and New Orders
|
|
(Dollars in
thousands, except average sales price)
|
|
(unaudited)
|
|
|
At or for the
Three Months Ended May 31,
|
|
Deliveries:
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
|
East
|
2,189
|
|
|
1,859
|
|
|
$
|
648,307
|
|
|
533,991
|
|
|
$
|
296,000
|
|
|
287,000
|
|
|
Central
|
951
|
|
|
831
|
|
|
301,339
|
|
|
233,438
|
|
|
317,000
|
|
|
281,000
|
|
|
West
|
1,353
|
|
|
985
|
|
|
624,042
|
|
|
418,136
|
|
|
461,000
|
|
|
425,000
|
|
|
Southeast
Florida
|
519
|
|
|
374
|
|
|
184,839
|
|
|
129,268
|
|
|
356,000
|
|
|
346,000
|
|
|
Houston
|
636
|
|
|
600
|
|
|
182,633
|
|
|
166,152
|
|
|
287,000
|
|
|
277,000
|
|
|
Other
|
367
|
|
|
338
|
|
|
157,391
|
|
|
130,711
|
|
|
429,000
|
|
|
387,000
|
|
|
Total
|
6,015
|
|
|
4,987
|
|
|
$
|
2,098,551
|
|
|
1,611,696
|
|
|
$
|
349,000
|
|
|
323,000
|
|
|
|
Of the total homes
delivered listed above, 26 homes with a dollar value of $17.4
million and an average sales price of $671,000 represent home
deliveries from unconsolidated entities for the three months ended
May 31, 2015, compared to 11 home deliveries with a dollar value of
$6.3 million and an average sales price of $575,000 for the three
months ended May 31, 2014.
|
|
New
Orders:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
|
East
|
2,589
|
|
|
2,182
|
|
|
$
|
777,847
|
|
|
629,410
|
|
|
$
|
300,000
|
|
|
288,000
|
|
|
Central
|
1,217
|
|
|
1,045
|
|
|
398,694
|
|
|
305,069
|
|
|
328,000
|
|
|
292,000
|
|
|
West
|
1,756
|
|
|
1,307
|
|
|
818,981
|
|
|
558,602
|
|
|
466,000
|
|
|
427,000
|
|
|
Southeast
Florida
|
590
|
|
|
523
|
|
|
204,984
|
|
|
169,456
|
|
|
347,000
|
|
|
324,000
|
|
|
Houston
|
684
|
|
|
753
|
|
|
203,386
|
|
|
206,223
|
|
|
297,000
|
|
|
274,000
|
|
|
Other
|
435
|
|
|
373
|
|
|
185,542
|
|
|
154,083
|
|
|
427,000
|
|
|
413,000
|
|
|
Total
|
7,271
|
|
|
6,183
|
|
|
$
|
2,589,434
|
|
|
2,022,843
|
|
|
$
|
356,000
|
|
|
327,000
|
|
|
|
Of the total new
orders listed above, 24 homes with a dollar value of $17.7 million
and an average sales price of $737,000 represent new orders from
unconsolidated entities for the three months ended May 31, 2015,
compared to 12 new orders with a dollar value of $8.6 million and
an average sales price of $714,000 for the three months ended May
31, 2014.
|
|
At or for the Six
Months Ended May 31,
|
|
Deliveries:
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
|
East
|
3,797
|
|
|
3,253
|
|
|
$
|
1,105,127
|
|
|
925,964
|
|
|
$
|
291,000
|
|
|
285,000
|
|
|
Central
|
1,632
|
|
|
1,353
|
|
|
506,079
|
|
|
373,253
|
|
|
310,000
|
|
|
276,000
|
|
|
West
|
2,279
|
|
|
1,717
|
|
|
1,006,702
|
|
|
723,427
|
|
|
442,000
|
|
|
421,000
|
|
|
Southeast
Florida
|
897
|
|
|
672
|
|
|
315,337
|
|
|
231,075
|
|
|
352,000
|
|
|
344,000
|
|
|
Houston
|
1,097
|
|
|
1,038
|
|
|
307,563
|
|
|
288,271
|
|
|
280,000
|
|
|
278,000
|
|
|
Other
|
615
|
|
|
563
|
|
|
261,581
|
|
|
217,430
|
|
|
425,000
|
|
|
386,000
|
|
|
Total
|
10,317
|
|
|
8,596
|
|
|
$
|
3,502,389
|
|
|
2,759,420
|
|
|
$
|
339,000
|
|
|
321,000
|
|
|
|
Of the total homes
delivered listed above, 27 homes with a dollar value of $17.7
million and an average sales price of $656,000 represent home
deliveries from unconsolidated entities for the six months ended
May 31, 2015, compared to 23 home deliveries with a dollar value of
$13.8 million and an average sales price of $601,000 for the six
months ended May 31, 2014.
|
|
New
Orders:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
|
East
|
4,569
|
|
|
3,828
|
|
|
$
|
1,379,443
|
|
|
1,100,028
|
|
|
$
|
302,000
|
|
|
287,000
|
|
|
Central
|
2,129
|
|
|
1,811
|
|
|
685,369
|
|
|
523,196
|
|
|
322,000
|
|
|
289,000
|
|
|
West
|
2,946
|
|
|
2,146
|
|
|
1,346,565
|
|
|
937,311
|
|
|
457,000
|
|
|
437,000
|
|
|
Southeast
Florida
|
940
|
|
|
889
|
|
|
329,408
|
|
|
289,104
|
|
|
350,000
|
|
|
325,000
|
|
|
Houston
|
1,204
|
|
|
1,313
|
|
|
349,109
|
|
|
362,906
|
|
|
290,000
|
|
|
276,000
|
|
|
Other
|
770
|
|
|
661
|
|
|
328,321
|
|
|
272,408
|
|
|
426,000
|
|
|
412,000
|
|
|
Total
|
12,558
|
|
|
10,648
|
|
|
$
|
4,418,215
|
|
|
3,484,953
|
|
|
$
|
352,000
|
|
|
327,000
|
|
|
|
Of the total new
orders listed above, 50 homes with a dollar value of $30.0 million
and an average sales price of $600,000 represent new orders from
unconsolidated entities for the six months ended May 31, 2015,
compared to 24 new orders with a dollar value of $15.0 million and
an average sales price of $625,000 for the six months ended May 31,
2014.
|
|
LENNAR CORPORATION
AND SUBSIDIARIES
|
|
Summary of
Backlog
|
|
(Dollars in
thousands, except average sales price)
|
|
(unaudited)
|
|
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
|
May
31,
|
|
Backlog:
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
East
|
2,984
|
|
|
2,543
|
|
|
$
|
945,152
|
|
|
777,063
|
|
|
$
|
317,000
|
|
|
306,000
|
|
|
Central
|
1,458
|
|
|
1,102
|
|
|
490,007
|
|
|
346,958
|
|
|
336,000
|
|
|
315,000
|
|
|
West
|
1,658
|
|
|
1,045
|
|
|
777,451
|
|
|
471,574
|
|
|
469,000
|
|
|
451,000
|
|
|
Southeast
Florida
|
619
|
|
|
824
|
|
|
228,748
|
|
|
274,163
|
|
|
370,000
|
|
|
333,000
|
|
|
Houston
|
937
|
|
|
944
|
|
|
267,415
|
|
|
255,720
|
|
|
285,000
|
|
|
271,000
|
|
|
Other
|
417
|
|
|
400
|
|
|
180,390
|
|
|
224,717
|
|
|
433,000
|
|
|
562,000
|
|
|
Total
|
8,073
|
|
|
6,858
|
|
|
$
|
2,889,163
|
|
|
2,350,195
|
|
|
$
|
358,000
|
|
|
343,000
|
|
|
|
Of the total homes in
backlog listed above, 90 homes with a backlog dollar value of $52.1
million and an average sales price
of
$579,000 represent the backlog from
unconsolidated entities at May 31, 2015, compared to 5 homes
with a backlog dollar
value of $3.7 million and an average
sales price of $736,000 at May 31, 2014.
|
|
|
Lennar's reportable
homebuilding segments and all other homebuilding operations not
required to be reported separately,
have
operations located in:
|
|
|
East:
Florida(1), Georgia, Maryland, New Jersey, North
Carolina, South Carolina and Virginia
|
|
Central:
Arizona, Colorado and Texas(2)
|
|
West: California
and Nevada
|
|
Southeast
Florida: Southeast Florida
|
|
Houston:
Houston, Texas
|
|
Other: Illinois,
Minnesota, Oregon, Tennessee and Washington
|
|
|
(1)
Florida in the East reportable segment excludes Southeast Florida,
which is its own reportable segment.
|
|
(2)
Texas in the Central reportable segment excludes Houston, Texas,
which is its own reportable segment.
|
|
LENNAR CORPORATION
AND SUBSIDIARIES
|
|
Supplemental
Data
|
|
(Dollars in
thousands)
|
|
(unaudited)
|
|
|
May
31,
|
|
November
30,
|
|
May
31,
|
|
2015
|
|
2014
|
|
2014
|
|
Lennar Homebuilding
debt
|
$
|
5,291,136
|
|
|
4,690,213
|
|
|
4,683,438
|
|
|
Stockholders'
equity
|
5,138,738
|
|
|
4,827,020
|
|
|
4,399,344
|
|
|
Total
capital
|
$
|
10,429,874
|
|
|
9,517,233
|
|
|
9,082,782
|
|
|
Lennar
Homebuilding debt to total capital
|
50.7
|
%
|
|
49.3
|
%
|
|
51.6
|
%
|
|
|
|
|
|
|
|
Lennar Homebuilding
debt
|
$
|
5,291,136
|
|
|
4,690,213
|
|
|
4,683,438
|
|
|
Less: Lennar
Homebuilding cash and cash equivalents
|
638,992
|
|
|
885,729
|
|
|
627,615
|
|
|
Net Lennar
Homebuilding debt
|
$
|
4,652,144
|
|
|
3,804,484
|
|
|
4,055,823
|
|
|
Net Lennar
Homebuilding debt to total capital (1)
|
47.5
|
%
|
|
44.1
|
%
|
|
48.0
|
%
|
|
(1)
|
Net Lennar
Homebuilding debt to total capital is a non-GAAP financial measure
defined as net Lennar Homebuilding debt (Lennar Homebuilding debt
less Lennar Homebuilding cash and cash equivalents) divided by
total capital (net Lennar Homebuilding debt plus stockholders'
equity). The Company believes the ratio of net Lennar Homebuilding
debt to total capital is a relevant and a useful financial measure
to investors in understanding the leverage employed in Lennar
Homebuilding operations. However, because net Lennar 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.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lennar-reports-second-quarter-eps-of-079-300103809.html
SOURCE Lennar Corporation