MIAMI, Dec. 18, 2015
/PRNewswire/ --
2015 Fourth Quarter
- Net earnings of $281.6
million, or $1.21 per diluted
share, compared to $245.3 million, or
$1.07 per diluted share
- Deliveries of 7,657 homes – up 10%
- New orders of 6,053 homes – up 10%; new orders dollar value
of $2.1 billion – up
20%
- Backlog of 6,646 homes – up 14%; backlog dollar value of
$2.5 billion – up 25%
- Revenues of $2.9 billion – up
14%
- Lennar Homebuilding operating earnings of $437.5 million, compared to $375.1 million – up 17%
- Operating metrics in this segment were in line with the
Company's previously stated goals:
- Gross margin on home sales of 24.6%, compared to 25.6% in Q4
2014, improved sequentially 50 basis points from Q3 2015
- S,G&A expenses as a % of revenues from home sales
improved to 9.2%, compared to 9.6% in Q4 2014, improved
sequentially 70 basis points from Q3 2015
- Operating margin on home sales of 15.5%, compared to 16.0%
in Q4 2014, improved sequentially 140 basis points from Q3
2015
- Lennar Financial Services operating earnings of $33.8 million, compared to $30.2 million
- Rialto operating earnings (net of noncontrolling interests)
of $7.6 million, compared to
$38.2 million (which included
$34.7 million of advanced
distributions related to carried interests)
- Lennar Multifamily operating earnings of $10.2 million, compared to an operating loss of
$6.1 million
- Lennar Homebuilding cash and cash equivalents of
$893 million
- Issued $400 million of 4.875%
senior notes due November
2023
- No outstanding borrowings under the $1.6 billion credit facility
- Lennar Homebuilding debt to total capital, net of cash and
cash equivalents, of 42.2%
2015 Fiscal Year
- Net earnings of $802.9
million, or $3.46 per diluted
share, compared to $638.9 million, or
$2.80 per diluted share
- Deliveries of 24,292 homes – up 16%
- New orders of 25,106 homes – up 14%
- Revenues of $9.5 billion – up
22%
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,
2015. Fourth quarter net earnings attributable to Lennar in 2015
were $281.6 million, or $1.21 per diluted share, compared to $245.3 million, or $1.07 per diluted share, in the fourth quarter of
2014. Net earnings attributable to Lennar for the year ended
November 30, 2015 were $802.9
million, or $3.46 per diluted
share, compared to $638.9 million, or
$2.80 per diluted share, for the year
ended November 30, 2014.
Stuart Miller, Chief Executive
Officer of Lennar Corporation, said, "We are pleased to announce
our fourth quarter and fiscal 2015 results, as we achieved a 15%
and 26% year-over-year increase in net earnings, respectively. This
was the fourth consecutive year of growth in revenues, pre-tax
earnings, deliveries and new orders. In the fourth quarter, we were
able to meet our delivery schedule despite a tight labor market and
the impact of the new TRID regulations. Additionally, we continued
to identify unique and enticing land opportunities that will drive
our future growth and profitability."
Mr. Miller continued, "While the Federal Reserve announced the
first interest rate increase in nine years, it stated that the
increase was a sign of confidence in the economy. We believe that
improving employment levels, wage growth and consumer confidence
will continue to keep the housing market on its slow and steady
recovery. Thus, we believe we are very well positioned to achieve
another year of company-wide improvement in 2016.
"Our core homebuilding business continued to produce strong
operating results in the fourth quarter as gross and operating
margins were 24.6% and 15.5%, respectively. Our home deliveries and
new orders both increased 10% in the fourth quarter, compared to
the same period last year. Our efficient Everything's
Included® manufacturing model helped mitigate the impact
of a tight labor market. We also continued to see the benefits of
our focus on digital marketing through improved S,G&A
leverage.
"Complementing our homebuilding business, our Lennar Financial
Services segment continued its strong performance by increasing its
earnings to $33.8 million in the
fourth quarter from $30.2 million in
the fourth quarter of 2014. The increase in profitability was
primarily due to an increase in volume which benefited both our
mortgage and title operations.
"Our Multifamily business generated $10.2
million of earnings during the fourth quarter, primarily due
to the sale of an apartment property by one of its joint ventures.
With our geographically diversified pipeline of multifamily
product, we expect a significant contribution to earnings from this
business in fiscal 2016.
"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 commercial lending business had another
quarter of strong earnings."
Mr. Miller continued, "While our homebuilding business continues
to be the primary driver of our earnings, we are in an excellent
position across our multiple platforms. With our strong balance
sheet and a sales backlog dollar value of $2.5 billion, we are well positioned as we enter
2016."
RESULTS OF OPERATIONS
THREE MONTHS ENDED NOVEMBER 30, 2015 COMPARED TO
THREE
MONTHS ENDED NOVEMBER 30,
2014
Lennar Homebuilding
Revenues from home sales increased 16% in the fourth quarter of
2015 to $2.6 billion from
$2.3 billion in the fourth quarter of
2014. Revenues were higher primarily due to a 9% 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 7,605
homes in the fourth quarter of 2015 from 6,948 homes in the fourth
quarter of 2014. There was an increase in home deliveries in all of
the Company's Homebuilding segments and Homebuilding Other, except
for Southeast Florida and
Houston. The decrease in
Southeast Florida was primarily
due to a higher mix of start-up communities, which are earlier in
the life cycle of delivering homes than non start-up communities.
The decrease in home deliveries in Houston was primarily due to less demand
driven by volatility in the energy sector. The average sales price
of homes delivered increased to $347,000 in the fourth quarter of 2015 from
$329,000 in the fourth quarter of
2014. Sales incentives offered to homebuyers were $21,700 per home delivered in the fourth quarter
of 2015, or 5.9% as a percentage of home sales revenue, compared to
$23,100 per home delivered in the
same period last year, or 6.6% as a percentage of home sales
revenue.
Gross margins on home sales were $651.1
million, or 24.6%, in the fourth quarter of 2015, compared
to $584.4 million, or 25.6%, in the
fourth 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
and a decrease in sales incentives offered to homebuyers as a
percentage of revenue from home sales. Gross profits on land sales
were $7.9 million in the fourth
quarter of 2015, compared to $15.6
million in the fourth quarter of 2014.
Selling, general and administrative expenses were $242.7 million in the fourth quarter of 2015,
compared to $218.6 million in the
fourth quarter of 2014. As a percentage of revenues from home
sales, selling, general and administrative expenses improved to
9.2% in the fourth quarter of 2015, from 9.6% in the fourth quarter
of 2014, primarily due to improved operating leverage as a result
of an increase in home deliveries.
Lennar Homebuilding equity in earnings (loss) from
unconsolidated entities was $14.7
million in the fourth quarter of 2015, compared to
($3.7) million in the fourth quarter
of 2014. In the fourth quarter of 2015, Lennar Homebuilding
equity in earnings from unconsolidated entities primarily related
to $18.3 million of equity in
earnings from Heritage Fields El Toro, LLC, one of the Company's
unconsolidated entities ("El Toro"), primarily due to the sale of
840 homesites to a joint venture in which the Company has a 50%
investment. In the fourth quarter of 2014, Lennar Homebuilding
equity in loss from unconsolidated entities primarily related to
$4.3 million of the Company's share
of a valuation adjustment related to assets of a Lennar
Homebuilding unconsolidated entity.
Lennar Homebuilding other income, net totaled $8.3 million in the fourth quarter of 2015,
compared to $2.4 million in the
fourth quarter of 2014. In the fourth quarter of 2015, other
income, net included a $3.7 million
gain on the sale of a clubhouse.
Lennar Homebuilding interest expense was $65.5 million in the fourth quarter of 2015
($62.9 million was included in cost
of homes sold, $0.8 million in cost
of land sold and $1.8 million in
other interest expense), compared to $60.0
million in the fourth quarter of 2014 ($53.7 million was included in cost of homes sold,
$1.0 million in cost of land sold and
$5.2 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 $33.8 million in the fourth
quarter of 2015, compared to $30.2
million in the fourth quarter of 2014. The increase in
profitability was primarily due to an increase in mortgage
originations driven by an increase in purchase volume for both
Lennar and non-Lennar homebuyers, an increase in capture rate and a
stronger refinance market. The increase in volume also benefited
the title operations.
Rialto
Operating earnings for our Rialto segment were $7.6 million in the fourth quarter of 2015
(which included $16.9 million of
operating earnings, partially offset by $9.3
million of net earnings attributable to noncontrolling
interests), compared to operating earnings of $38.2 million in the fourth quarter of 2014
(which included $36.4 million of
operating earnings and an add back of $1.8
million of net loss attributable to noncontrolling
interests).
Revenues were $61.2 million in the
fourth quarter of 2015, compared to revenues of $88.3 million in the fourth quarter of 2014. In
the fourth quarter of 2015 and 2014, revenues included $3.8 million and $34.7
million, respectively, of advanced distributions with
regards to Rialto's carried interests in the real estate funds in
order to cover income tax obligations resulting from allocations of
taxable income due to Rialto's carried interests in these
funds.
Expenses were $61.3 million in the
fourth quarter of 2015, compared to expenses of $74.3 million in the fourth quarter of 2014.
Expenses decreased primarily due to lower general and
administrative expenses and a $9.3
million decrease in loan impairments, partially offset by an
increase in RMF securitization expenses and interest expense.
Rialto equity in earnings from unconsolidated entities was
$4.7 million and $16.0 million in the fourth quarter of 2015 and
2014, respectively, related to the segment's share of net earnings
from its real estate funds. The decrease in equity in earnings was
related to smaller net increases in the fair value of certain
assets in the Rialto real estate funds in the fourth quarter of
2015 than in the same period last year.
In the fourth quarter of 2015, Rialto other income, net was
$12.2 million, which consisted
primarily of $21.4 million of net
realized gains on the sale of real estate owned ("REO") and rental
income, net, partially offset by expenses related to owning and
maintaining REO and $4.6 million of
impairments on REO. In the fourth quarter of 2014, Rialto other
income, net was $6.4 million, which
consisted primarily of $15.8 million
of net realized gains on the sale of REO and rental income, net,
partially offset by expenses related to owning and maintaining REO
and $8.8 million of impairments on
REO.
Lennar Multifamily
Operating earnings (loss) for the Lennar Multifamily segment was
$10.2 million in the fourth quarter
of 2015, compared to ($6.1) million
in the fourth quarter of 2014. In the fourth quarter of 2015,
operating earnings primarily related to the segment's $16.6 million share of a gain as a result of the
sale of an operating property by one of Lennar Multifamily's
unconsolidated entities and management fee income, partially offset
by general and administrative expenses. In the fourth quarter of
2014, 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 $65.9 million, or 2.2% as a percentage of total
revenues, in the fourth quarter of 2015, compared to $57.7 million, or 2.2% as a percentage of total
revenues, in the fourth quarter of 2014.
Noncontrolling Interests
Net earnings attributable to noncontrolling interests were
$11.1 million and $7.3 million in the fourth quarter of 2015 and
2014, respectively. Net earnings attributable to noncontrolling
interests in the fourth quarter of 2015 were primarily attributable
to earnings related to the FDIC's interest in the portfolio of real
estate loans that the Company acquired in partnership with the
FDIC. Net earnings attributable to noncontrolling interests in the
fourth quarter of 2014 were primarily attributable to a strategic
transaction by one of Lennar Homebuilding's consolidated joint
ventures that impacted noncontrolling interests by $5.6 million.
YEAR ENDED NOVEMBER 30,
2015 COMPARED TO
YEAR ENDED NOVEMBER 30, 2014
Lennar Homebuilding
Revenues from home sales increased 22% in the year ended
November 30, 2015 to $8.3
billion from $6.8 billion in
2014. Revenues were higher primarily due to a 15% 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 24,209
homes in the year ended November 30, 2015 from 20,971 homes
last year. There was an increase in home deliveries in all of the
Company's Homebuilding segments and Homebuilding Other, except in
Houston. The slight decrease in
home deliveries in Houston was
primarily due to less demand driven by volatility in the energy
sector. The average sales price of homes delivered increased to
$344,000 in the year ended
November 30, 2015 from $326,000
in the year ended November 30, 2014. Sales incentives offered
to homebuyers were $21,400 per home
delivered in the year ended November 30, 2015, or 5.9% as a
percentage of home sales revenue, compared to $21,400 per home delivered in the year ended
November 30, 2014, or 6.2% as a percentage of home sales
revenue.
Gross margins on home sales were $2.0
billion, or 24.0%, in the year ended November 30, 2015,
compared to $1.7 billion, or 25.4%,
in the year ended November 30, 2014. Gross margin percentage
on home sales decreased compared to the year ended
November 30, 2014, primarily due to an increase in land costs,
partially offset by an increase in the average sales price of homes
delivered and a decrease in sales incentives offered to homebuyers
as a percentage of revenue from home sales. Gross profits on land
sales were $30.1 million in the year
ended November 30, 2015, compared to $41.7 million in the year ended November 30,
2014.
Selling, general and administrative expenses were $831.1 million in the year ended
November 30, 2015, compared to $714.8
million in the year ended November 30, 2014. As a
percentage of revenues from home sales, selling, general and
administrative expenses improved to 10.0% in the year ended
November 30, 2015, from 10.5% in the year ended
November 30, 2014 primarily due to improved operating leverage
as a result of an increase in home deliveries.
Lennar Homebuilding equity in earnings (loss) from
unconsolidated entities was $63.4
million in the year ended November 30, 2015, compared
to ($0.4) million in the year ended
November 30, 2014. In the year ended November 30, 2015,
Lennar Homebuilding equity in earnings from unconsolidated entities
primarily related to $82.8 million of
equity in earnings from El Toro due to the sale of approximately
700 homesites and a commercial property to third parties, the sale
of 840 homesites to a joint venture in which the
company has a 50% investment, and a gain on debt
extinguishment. In the year ended November 30, 2014, Lennar
Homebuilding equity in loss from unconsolidated entities primarily
related to the Company's share of net operating losses from various
Lennar Homebuilding unconsolidated entities, which included
$4.6 million of the Company's share
of valuation adjustments related to assets of Lennar Homebuilding's
unconsolidated entities.
Lennar Homebuilding other income, net totaled $18.6 million in the year ended November 30,
2015, compared to $7.5 million in the
year ended November 30, 2014. In the year ended
November 30, 2015, other income, net included $10.2 million aggregate gains on the sales of an
operating property and a clubhouse.
Lennar Homebuilding interest expense was $220.1 million in the year ended
November 30, 2015 ($205.2
million was included in cost of homes sold, $2.5 million in cost of land sold and
$12.5 million in other interest
expense), compared to $201.5 million
in the year ended November 30, 2014 ($161.4 million was included in cost of homes
sold, $3.6 million in cost of land
sold and $36.6 million in other
interest expense). Interest expense increased primarily due to an
increase in the Company's outstanding debt and 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 $127.8 million in the year ended
November 30, 2015, compared to $80.1
million in the year ended November 30, 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 for both Lennar and non-Lennar
homebuyers, and an increase in capture rate. The increase in volume
also benefited the title operations.
Rialto
Operating earnings for our Rialto segment were $28.8 million in the year ended November 30,
2015 (which included $33.6 million of
operating earnings, partially offset by $4.8
million of net earnings attributable to noncontrolling
interests), compared to operating earnings of $66.6 million in the year ended November 30,
2014 (which included $44.1 million of
operating earnings and an add back of $22.5
million of net loss attributable to noncontrolling
interests).
Revenues were $221.9 million in
the year ended November 30, 2015, compared to $230.5 million in the year ended
November 30, 2014. Revenues decreased primarily due to 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 and because Rialto no longer
recognizes interest income under the accretable yield method.
Instead, interest income is recognized to the extent that loan
collections exceed their carrying value. This decrease was
partially offset by an increase in securitization revenue and
interest income from RMF. In addition, in the years ended
November 30, 2015 and 2014, revenues included $20.0 million and $34.7
million, respectively, of advanced distributions with
regards to Rialto's carried interests in the real estate funds in
order to cover income tax obligations resulting from allocations of
taxable income due to Rialto's carried interests in these
funds.
Expenses were $222.9 million in
the year ended November 30, 2015, compared to $249.1 million in the year ended
November 30, 2014. Expenses decreased primarily due to a
$46.8 million decrease in loan
impairments, partially offset by an increase in RMF securitization
expenses, general and administrative expenses and interest
expense.
Rialto equity in earnings from unconsolidated entities was
$22.3 million and $59.3 million in the years ended
November 30, 2015 and 2014, respectively, primarily related to
the segment's share of net earnings from its real estate funds. The
decrease in equity in earnings was primarily related to smaller net
increases in the fair value of certain assets in the Rialto real
estate funds in the year ended November 30, 2015 than in prior
year.
In the year ended November 30, 2015, Rialto other income,
net was $12.3 million, which
consisted primarily of $35.2 million
of net realized gains on the sale of REO and rental income, net,
partially offset by expenses related to owning and maintaining REO
and $12.4 million of impairments on
REO. In the year ended November 30, 2014, Rialto other income,
net was $3.4 million, which consisted
primarily of $43.7 million of net
realized gains on the sale of REO and rental income, net, partially
offset by expenses related to owning and maintaining REO and
$19.3 million of impairments on
REO.
Lennar Multifamily
Operating loss for the Lennar Multifamily segment was
$7.2 million in the year ended
November 30, 2015, compared to $11.0
million in the year ended November 30, 2014. In the
year ended November 30, 2015, the operating loss in Lennar
Multifamily primarily related to general and administrative
expenses, partially offset by the segment's $22.2 million share of gains as a result of the
sale of two operating properties by Lennar Multifamily's
unconsolidated entities, management fee income and general
contractor income, net. In the year ended November 30, 2014,
the operating loss in Lennar Multifamily primarily related to
general and administrative expenses, partially offset by the
segment's $14.7 million share of
gains as a result of the sale of two operating properties by Lennar
Multifamily unconsolidated entities and management fee income.
Corporate General and Administrative Expenses
Corporate general and administrative expenses were $216.2 million, or 2.3% as a percentage of total
revenues, in the year ended November 30, 2015, compared to
$177.2 million, or 2.3% as a
percentage of total revenues, in the year ended November 30,
2014.
Noncontrolling Interests
Net earnings (loss) attributable to noncontrolling interests
were $16.3 million and ($10.2) million in the years ended
November 30, 2015 and 2014, respectively. Net earnings
attributable to noncontrolling interests in the year ended
November 30, 2015 were primarily attributable to earnings
related to Lennar Homebuilding consolidated joint ventures and 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 in the year ended
November 30, 2014 was primarily due to 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, partially offset by
a strategic transaction by one of Lennar Homebuilding's
consolidated joint ventures that impacted noncontrolling interests
by $5.6 million.
OTHER TRANSACTIONS
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.
In November 2015, the Company
issued $400 million of 4.875% senior
notes due November 2023. The Company
used some of the net proceeds from the offering to repay amounts
outstanding under the Company's unsecured revolving credit facility
and will use any remainder for general corporate purposes, which
may include the redemption or settlement of the Company's 2.75%
convertible senior notes due 2020 ("2.75% Convertible Senior
Notes") in full or in part.
During the year ended November 30, 2015, the Company paid
and delivered approximately $213
million in cash and 4.2 million shares of Class A common
stock on exchange or conversion of approximately $212 million aggregate principal amount of its
2.75% Convertible Senior Notes. At November 30, 2015,
approximately $234
million aggregate principal amount of the Company's 2.75%
Convertible Senior Notes was outstanding.
Credit Facility
During the year ended November 30, 2015, the Company
amended its unsecured revolving credit facility (the "Credit
Facility") to reduce the interest rate and increase the maximum
potential borrowing capacity. At November 30, 2015, the
Company had a $1.6 billion Credit
Facility, which includes a $163
million accordion feature, subject to additional commitments
with certain financial institutions. The maturity for $1.3 billion of the Credit Facility is in
June 2019, with the remainder
maturing in June 2018. As of
November 30, 2015, there were no outstanding borrowings under
the Credit Facility.
Lennar Corporation, founded in 1954, is one of the nation's
leading 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 national 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
employment levels, wage growth and consumer confidence
will continue to keep the housing market on its slow and
steady recovery, our belief that we are very well positioned to
achieve another year of company wide improvement in 2016, our
expectation of a significant contribution to earnings from the
Multifamily business in fiscal 2016 and our belief that Rialto's
fund investments are poised for strong long-term returns. 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 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; 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 Homebuilding and Multifamily businesses; decreased demand
for our Multifamily rental properties, and our ability to
successfully sell our apartments; unfavorable or unanticipated
outcomes in legal proceedings that substantially exceed our
expectations; 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 book 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 additional
increases in 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 fourth quarter
earnings will be held at 11:00 a.m. Eastern
Time on Friday, December 18,
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
203-369-3809 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,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues:
|
|
|
|
|
|
|
|
Lennar
Homebuilding
|
$
|
2,677,157
|
|
|
2,328,189
|
|
|
8,466,945
|
|
|
7,025,130
|
|
Lennar Financial
Services
|
157,067
|
|
|
138,034
|
|
|
620,527
|
|
|
454,381
|
|
Rialto
|
61,241
|
|
|
88,325
|
|
|
221,923
|
|
|
230,521
|
|
Lennar
Multifamily
|
50,102
|
|
|
29,390
|
|
|
164,613
|
|
|
69,780
|
|
Total
revenues
|
$
|
2,945,567
|
|
|
2,583,938
|
|
|
9,474,008
|
|
|
7,779,812
|
|
|
|
|
|
|
|
|
|
Lennar Homebuilding
operating earnings
|
$
|
437,496
|
|
|
375,064
|
|
|
1,271,641
|
|
|
1,033,721
|
|
Lennar Financial
Services operating earnings
|
33,778
|
|
|
30,236
|
|
|
127,795
|
|
|
80,138
|
|
Rialto operating
earnings
|
16,913
|
|
|
36,417
|
|
|
33,595
|
|
|
44,079
|
|
Lennar Multifamily
operating earnings (loss)
|
10,207
|
|
|
(6,114)
|
|
|
(7,171)
|
|
|
(10,993)
|
|
Corporate general and
administrative expenses
|
(65,889)
|
|
|
(57,660)
|
|
|
(216,244)
|
|
|
(177,161)
|
|
Earnings before
income taxes
|
432,505
|
|
|
377,943
|
|
|
1,209,616
|
|
|
969,784
|
|
Provision for income
taxes
|
(139,843)
|
|
|
(125,272)
|
|
|
(390,416)
|
|
|
(341,091)
|
|
Net earnings
(including net earnings (loss)
attributable to noncontrolling
interests)
|
292,662
|
|
|
252,671
|
|
|
819,200
|
|
|
628,693
|
|
Less: Net earnings
(loss) attributable to
noncontrolling
interests
|
11,059
|
|
|
7,348
|
|
|
16,306
|
|
|
(10,223)
|
|
Net earnings
attributable to Lennar
|
$
|
281,603
|
|
|
245,323
|
|
|
802,894
|
|
|
638,916
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
208,397
|
|
|
202,526
|
|
|
205,189
|
|
|
202,209
|
|
Diluted
(1)
|
231,341
|
|
|
229,088
|
|
|
230,812
|
|
|
228,240
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
1.34
|
|
|
1.20
|
|
|
3.87
|
|
|
3.12
|
|
Diluted
|
$
|
1.21
|
|
|
1.07
|
|
|
3.46
|
|
|
2.80
|
|
|
|
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
|
|
|
Interest incurred
(2)
|
$
|
71,279
|
|
|
67,042
|
|
|
288,516
|
|
|
273,448
|
|
|
|
|
|
|
|
|
|
EBIT
(3):
|
|
|
|
|
|
|
|
Net earnings
attributable to Lennar
|
$
|
281,603
|
|
|
245,323
|
|
|
802,894
|
|
|
638,916
|
|
Provision for income
taxes
|
139,843
|
|
|
125,272
|
|
|
390,416
|
|
|
341,091
|
|
Interest
expense
|
65,516
|
|
|
59,974
|
|
|
220,147
|
|
|
201,539
|
|
EBIT
|
$
|
486,962
|
|
|
430,569
|
|
|
1,413,457
|
|
|
1,181,546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Diluted earnings per
share includes an add back of interest of $2.0 million and $7.9
million for both the three months and years ended November 30,
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
|
|
Years
Ended
|
|
November
30,
|
|
November
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Lennar
Homebuilding revenues:
|
|
|
|
|
|
|
|
Sales of
homes
|
$
|
2,642,213
|
|
|
2,282,623
|
|
|
8,335,904
|
|
|
6,839,642
|
|
Sales of
land
|
34,944
|
|
|
45,566
|
|
|
131,041
|
|
|
185,488
|
|
Total
revenues
|
2,677,157
|
|
|
2,328,189
|
|
|
8,466,945
|
|
|
7,025,130
|
|
|
|
|
|
|
|
|
|
Lennar
Homebuilding costs and expenses:
|
|
|
|
|
|
|
|
Cost of homes
sold
|
1,991,147
|
|
|
1,698,220
|
|
|
6,332,850
|
|
|
5,103,409
|
|
Cost of land
sold
|
27,074
|
|
|
29,928
|
|
|
100,939
|
|
|
143,797
|
|
Selling, general and
administrative
|
242,678
|
|
|
218,564
|
|
|
831,050
|
|
|
714,823
|
|
Total costs
and expenses
|
2,260,899
|
|
|
1,946,712
|
|
|
7,264,839
|
|
|
5,962,029
|
|
Lennar
Homebuilding operating margins
|
416,258
|
|
|
381,477
|
|
|
1,202,106
|
|
|
1,063,101
|
|
Lennar Homebuilding
equity in earnings (loss) from
unconsolidated entities
|
14,680
|
|
|
(3,659)
|
|
|
63,373
|
|
|
(355)
|
|
Lennar Homebuilding
other income, net
|
8,311
|
|
|
2,438
|
|
|
18,616
|
|
|
7,526
|
|
Other interest
expense
|
(1,753)
|
|
|
(5,192)
|
|
|
(12,454)
|
|
|
(36,551)
|
|
Lennar
Homebuilding operating earnings
|
$
|
437,496
|
|
|
375,064
|
|
|
1,271,641
|
|
|
1,033,721
|
|
|
|
|
|
|
|
|
|
Lennar Financial
Services revenues
|
$
|
157,067
|
|
|
138,034
|
|
|
620,527
|
|
|
454,381
|
|
Lennar Financial
Services costs and expenses
|
123,289
|
|
|
107,798
|
|
|
492,732
|
|
|
374,243
|
|
Lennar Financial
Services operating earnings
|
$
|
33,778
|
|
|
30,236
|
|
|
127,795
|
|
|
80,138
|
|
|
|
|
|
|
|
|
|
Rialto
revenues
|
$
|
61,241
|
|
|
88,325
|
|
|
221,923
|
|
|
230,521
|
|
Rialto costs and
expenses
|
61,265
|
|
|
74,290
|
|
|
222,875
|
|
|
249,114
|
|
Rialto equity in
earnings from unconsolidated entities
|
4,711
|
|
|
16,011
|
|
|
22,293
|
|
|
59,277
|
|
Rialto other income,
net
|
12,226
|
|
|
6,371
|
|
|
12,254
|
|
|
3,395
|
|
Rialto operating
earnings
|
$
|
16,913
|
|
|
36,417
|
|
|
33,595
|
|
|
44,079
|
|
|
|
|
|
|
|
|
|
Lennar Multifamily
revenues
|
$
|
50,102
|
|
|
29,390
|
|
|
164,613
|
|
|
69,780
|
|
Lennar Multifamily
costs and expenses
|
55,009
|
|
|
35,269
|
|
|
191,302
|
|
|
95,227
|
|
Lennar Multifamily
equity in earnings (loss) from unconsolidated entities
|
15,114
|
|
|
(235)
|
|
|
19,518
|
|
|
14,454
|
|
Lennar Multifamily
operating earnings (loss)
|
$
|
10,207
|
|
|
(6,114)
|
|
|
(7,171)
|
|
|
(10,993)
|
|
LENNAR CORPORATION
AND SUBSIDIARIES
|
Summary of Deliveries
and New Orders
|
(Dollars in
thousands, except average sales price)
|
(unaudited)
|
|
|
Three Months Ended
November 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Deliveries:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
3,053
|
|
|
2,609
|
|
|
$
|
901,520
|
|
|
740,763
|
|
|
$
|
295,000
|
|
|
284,000
|
|
Central
|
1,100
|
|
|
904
|
|
|
368,453
|
|
|
269,632
|
|
|
335,000
|
|
|
298,000
|
|
West
|
1,555
|
|
|
1,374
|
|
|
738,562
|
|
|
600,412
|
|
|
475,000
|
|
|
437,000
|
|
Southeast
Florida
|
885
|
|
|
915
|
|
|
298,734
|
|
|
294,164
|
|
|
338,000
|
|
|
321,000
|
|
Houston
|
670
|
|
|
768
|
|
|
192,637
|
|
|
206,383
|
|
|
288,000
|
|
|
269,000
|
|
Other
|
394
|
|
|
380
|
|
|
170,883
|
|
|
172,279
|
|
|
434,000
|
|
|
453,000
|
|
Total
|
7,657
|
|
|
6,950
|
|
|
$
|
2,670,789
|
|
|
2,283,633
|
|
|
$
|
349,000
|
|
|
329,000
|
|
Of the total homes
delivered listed above, 52 homes with a dollar value of $28.6
million and an average sales price of $550,000 represent home
deliveries from unconsolidated entities for the three months ended
November 30, 2015, compared to 2 home deliveries with a dollar
value of $1.0 million and an average sales price of $505,000
for the three months ended November 30, 2014.
|
New
Orders:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
2,315
|
|
|
2,150
|
|
|
$
|
698,299
|
|
|
605,032
|
|
|
$
|
302,000
|
|
|
281,000
|
|
Central
|
970
|
|
|
726
|
|
|
322,993
|
|
|
221,667
|
|
|
333,000
|
|
|
305,000
|
|
West
|
1,251
|
|
|
1,120
|
|
|
587,476
|
|
|
476,271
|
|
|
470,000
|
|
|
425,000
|
|
Southeast
Florida
|
685
|
|
|
575
|
|
|
224,344
|
|
|
190,145
|
|
|
328,000
|
|
|
331,000
|
|
Houston
|
510
|
|
|
641
|
|
|
145,781
|
|
|
173,615
|
|
|
286,000
|
|
|
271,000
|
|
Other
|
322
|
|
|
280
|
|
|
154,051
|
|
|
116,159
|
|
|
478,000
|
|
|
415,000
|
|
Total
|
6,053
|
|
|
5,492
|
|
|
$
|
2,132,944
|
|
|
1,782,889
|
|
|
$
|
352,000
|
|
|
325,000
|
|
Of the total new
orders listed above, 26 homes with a dollar value of $22.2 million
and an average sales price of $855,000 represent new orders from
unconsolidated entities for the three months ended
November 30, 2015, compared to 32 new orders with a dollar
value of $17.9 million and an average sales price of $558,000 for
the three months ended November 30, 2014.
|
|
Years Ended
November 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Deliveries:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
9,251
|
|
|
7,824
|
|
|
$
|
2,737,608
|
|
|
2,234,086
|
|
|
$
|
296,000
|
|
|
286,000
|
|
Central
|
3,719
|
|
|
3,156
|
|
|
1,191,456
|
|
|
908,195
|
|
|
320,000
|
|
|
288,000
|
|
West
|
5,245
|
|
|
4,141
|
|
|
2,383,432
|
|
|
1,775,587
|
|
|
454,000
|
|
|
429,000
|
|
Southeast
Florida
|
2,264
|
|
|
2,086
|
|
|
790,004
|
|
|
686,994
|
|
|
349,000
|
|
|
329,000
|
|
Houston
|
2,452
|
|
|
2,482
|
|
|
696,671
|
|
|
675,927
|
|
|
284,000
|
|
|
272,000
|
|
Other
|
1,361
|
|
|
1,314
|
|
|
584,435
|
|
|
578,295
|
|
|
429,000
|
|
|
440,000
|
|
Total
|
24,292
|
|
|
21,003
|
|
|
$
|
8,383,606
|
|
|
6,859,084
|
|
|
$
|
345,000
|
|
|
327,000
|
|
Of the total homes
delivered listed above, 83 homes with a dollar value of $47.7
million and an average sales price of $575,000 represent home
deliveries from unconsolidated entities for the year ended
November 30, 2015, compared to 32 home deliveries with a
dollar value of $19.4 million and an average sales price of
$608,000 for the year ended November 30, 2014.
|
New
Orders:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
9,347
|
|
|
8,068
|
|
|
$
|
2,808,537
|
|
|
2,303,916
|
|
|
$
|
300,000
|
|
|
286,000
|
|
Central
|
4,128
|
|
|
3,473
|
|
|
1,358,374
|
|
|
1,021,839
|
|
|
329,000
|
|
|
294,000
|
|
West
|
5,608
|
|
|
4,516
|
|
|
2,617,393
|
|
|
1,956,157
|
|
|
467,000
|
|
|
433,000
|
|
Southeast
Florida
|
2,232
|
|
|
2,055
|
|
|
761,959
|
|
|
685,536
|
|
|
341,000
|
|
|
334,000
|
|
Houston
|
2,320
|
|
|
2,643
|
|
|
678,965
|
|
|
720,453
|
|
|
293,000
|
|
|
273,000
|
|
Other
|
1,471
|
|
|
1,274
|
|
|
663,247
|
|
|
522,411
|
|
|
451,000
|
|
|
410,000
|
|
Total
|
25,106
|
|
|
22,029
|
|
|
$
|
8,888,475
|
|
|
7,210,312
|
|
|
$
|
354,000
|
|
|
327,000
|
|
Of the total new
orders listed above, 105 homes with a dollar value of $70.2 million
and an average sales price of $669,000 represent new orders from
unconsolidated entities for the year ended November 30, 2015,
compared to 95 new orders with a dollar value of $56.8 million and
an average sales price of $598,000 for the year ended
November 30, 2014.
|
LENNAR CORPORATION
AND SUBSIDIARIES
|
Summary of
Backlog
|
(Dollars in
thousands, except average sales price)
|
(unaudited)
|
|
|
November
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Backlog:
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
East
|
2,308
|
|
|
2,212
|
|
|
$
|
741,528
|
|
|
672,204
|
|
|
$
|
321,000
|
|
|
304,000
|
|
Central
|
1,370
|
|
|
961
|
|
|
477,674
|
|
|
310,726
|
|
|
349,000
|
|
|
323,000
|
|
West
|
1,354
|
|
|
991
|
|
|
671,524
|
|
|
437,492
|
|
|
496,000
|
|
|
441,000
|
|
Southeast
Florida
|
544
|
|
|
576
|
|
|
186,570
|
|
|
214,606
|
|
|
343,000
|
|
|
373,000
|
|
Houston
|
698
|
|
|
830
|
|
|
208,076
|
|
|
225,737
|
|
|
298,000
|
|
|
272,000
|
|
Other
|
372
|
|
|
262
|
|
|
192,379
|
|
|
113,563
|
|
|
517,000
|
|
|
433,000
|
|
Total
|
6,646
|
|
|
5,832
|
|
|
$
|
2,477,751
|
|
|
1,974,328
|
|
|
$
|
373,000
|
|
|
339,000
|
|
Of the total homes in
backlog listed above, 89 homes with a backlog dollar value of $62.4
million and an average sales price of $701,000 represent the
backlog from unconsolidated entities at November 30, 2015,
compared with 67 homes with a backlog dollar value of $39.8 million
and an average sales price of $595,000 at November 30,
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.
Supplemental
Data
|
(Dollars in thousands)
|
(unaudited)
|
|
|
November
30,
|
|
2015
|
|
2014
|
Lennar Homebuilding
debt
|
$
|
5,025,130
|
|
|
4,661,266
|
|
Stockholders'
equity
|
5,648,944
|
|
|
4,827,020
|
|
Total
capital
|
$
|
10,674,074
|
|
|
9,488,286
|
|
Lennar
Homebuilding debt to total capital
|
47.1
|
%
|
|
49.1
|
%
|
|
|
|
|
Lennar Homebuilding
debt
|
$
|
5,025,130
|
|
|
4,661,266
|
|
Less: Lennar
Homebuilding cash and cash equivalents
|
893,408
|
|
|
885,729
|
|
Net Lennar
Homebuilding debt
|
$
|
4,131,722
|
|
|
3,775,537
|
|
Net Lennar
Homebuilding debt to total capital (1)
|
42.2
|
%
|
|
43.9
|
%
|
(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 useful financial measure to
investors in understanding the leverage employed in the Company's
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-fourth-quarter-eps-of-121-300195029.html
SOURCE Lennar Corporation