Exhibit 99.1
| | | | | | | | |
| | | | | | | | Contact: |
| | | | | | | | Scott Shipley |
| | | | | | | | Investor Relations |
| | | | | | | | Lennar Corporation |
| | | | | | | | (305) 485-2054 |
FOR IMMEDIATE RELEASE
Lennar Reports Third Quarter Results
| | • | | Revenues of $2.3 billion – down 44% |
| | • | | Loss per share of $3.25 (includes a $3.33 per share charge related to valuation adjustments and write-offs of option deposits and pre-acquisition costs, goodwill and financial services notes receivable) |
| | • | | Homebuilding operating loss of $787.7 million (includes $847.5 million of homebuilding valuation adjustments and write-offs noted above) |
| | • | | Financial Services operating loss of $5.2 million (includes $9.3 million of write-offs of notes receivable) |
| | • | | Homebuilding debt decreased $212.8 million; homebuilding debt to total capital of 33.5% |
| | • | | Deliveries of 7,636 homes – down 41% |
| | • | | New orders of 5,804 homes – down 48%; cancellation rate of 32% |
| | • | | Backlog dollar value of $2.2 billion – down 60% |
Miami, September 25, 2007 — Lennar Corporation (NYSE: LEN and LEN.B), one of the nation’s largest homebuilders, today reported results for its third quarter ended August 31, 2007. Third quarter net loss in 2007 was $513.9 million, or $3.25 per diluted share, compared to third quarter net earnings of $206.7 million, or $1.30 per diluted share, in 2006.
Stuart Miller, President and Chief Executive Officer of Lennar Corporation, said, “It is already well documented that the housing market has continued to deteriorate throughout our third quarter. Heavy discounting by builders, and now the existing home market as well, has continued to drive pricing downward. Consumer confidence in housing has remained low, while the mortgage market has continued to redefine itself, creating higher cancellation rates.”
(more)
Mr. Miller continued, “Our response to, and primary focus in, this environment continues to be to adjust pricing to meet current market conditions in order to keep inventories low and to keep our balance sheet positioned for the future. The net effect has been a continued deterioration of our net margin and accordingly, higher impairments to our inventory.”
“We also have, and continue to, reduce overhead to be ‘right-sized’ for new and anticipated lower volume levels. While it has been challenging to stay ahead of rapidly adjusting market conditions and resulting revenue reductions, we have reduced our workforce to date by approximately 35% and expect continued reductions in the fourth quarter.”
Mr. Miller concluded, “The combination of moving our stated inventory to current market valuations, ‘right-sizing’ our overhead to reduced volume levels and a stabilization of market conditions should ultimately bring us back to profitability.”
RESULTS OF OPERATIONS
THREE MONTHS ENDED AUGUST 31, 2007 COMPARED TO
THREE MONTHS ENDED AUGUST 31, 2006
Homebuilding
Revenues from home sales decreased 44% in the third quarter of 2007 to $2.2 billion from $3.9 billion in 2006. Revenues were lower primarily due to a 41% decrease in the number of home deliveries and a 6% decrease in the average sales price of homes delivered in 2007. New home deliveries, excluding unconsolidated entities, decreased to 7,266 homes in the third quarter of 2007 from 12,337 homes last year. In the third quarter of 2007, new home deliveries were lower in each of the Company’s homebuilding segments and Homebuilding Other, compared to 2006. The average sales price of homes delivered decreased to $296,000 in the third quarter of 2007 from $316,000 in the same period last year, primarily due to higher sales incentives offered to homebuyers ($46,000 per home delivered in the third quarter of 2007, compared to $35,900 per home delivered in the same period last year).
Gross margins on home sales excluding FAS 144 valuation adjustments were $304.1 million, or 14.0%, in the third quarter of 2007, compared to $761.2 million, or 19.5%, in 2006. Gross margin percentage on home sales decreased compared to last year in all of the Company’s homebuilding segments primarily due to higher sales incentives offered to homebuyers. Gross margins on home sales were $1.0 million in the third quarter of 2007, which included $303.1 million of FAS 144 valuation adjustments, compared to gross margins on home sales of $729.2 million, or 18.7%, in the third quarter of 2006, which included $32.0 million of FAS 144
valuation adjustments. Gross margins on home sales excluding FAS 144 valuation adjustments is a non-GAAP financial measure disclosed by certain of the Company’s competitors and has been presented because the Company finds it 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.
Selling, general and administrative expenses were reduced by $122.3 million, or 29%, in the third quarter of 2007, compared to the same period last year, primarily due to reductions in associate headcount and variable compensation expense. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 14.0% in the third quarter of 2007, from 10.9% in 2006. The 310 basis point increase was primarily due to lower revenues.
Loss on land sales totaled $344.7 million in the third quarter of 2007, which included $114.6 million of FAS 144 valuation adjustments and $242.5 million of write-offs of deposits and pre-acquisition costs related to 15,000 homesites under option that the Company does not intend to purchase. In the third quarter of last year, loss on land sales totaled $0.3 million, which included $11.8 million of FAS 144 valuation adjustments and $15.8 million of write-offs of deposits and pre-acquisition costs related to 8,400 homesites that were under option.
Equity in loss from unconsolidated entities was $127.4 million in the third quarter of 2007, which included $138.7 million of FAS 144 valuation adjustments to the Company’s investments in unconsolidated entities, compared to equity in loss from unconsolidated entities of $5.9 million, which included $16.5 million of FAS 144 valuation adjustments to the Company’s investments in unconsolidated entities last year. Management fees and other expense, net, totaled $10.5 million in the third quarter of 2007 (including $32.1 million of valuation adjustments and $16.5 million of goodwill write-offs, partially offset by the recognition of $24.7 million of profit deferred at the time of the recapitalization of the LandSource joint venture), compared to management fees and other income, net of $21.8 million in the third quarter of 2006. Minority interest expense, net was $1.8 million and $1.1 million, respectively, in the third quarter of 2007 and 2006. Sales of land, equity in loss from unconsolidated entities, management fees and other income (expense), net and minority interest expense, net may vary significantly from period to period depending on the timing of land sales and other transactions entered into by the Company and unconsolidated entities in which it has investments.
Financial Services
Operating loss for the Financial Services segment was $5.2 million in the third quarter of 2007, compared to operating earnings of $61.7 million last year, which included a $17.7 million pretax gain generated from monetizing the segment’s personal lines insurance policies. The decrease was primarily due to a decline in profitability from both the segment’s mortgage and title operations
and $9.3 million of partial write-offs of land seller notes receivable. The decline in profitability was due to the overall weakness in the homebuilding market, which led to a decrease in volume and transactions for the mortgage and title operations compared to last year.
Corporate General and Administrative Expenses
Corporate general and administrative expenses were reduced by $6.2 million, or 12%, in the third quarter of 2007, compared to the same period last year. As a percentage of total revenues, corporate general and administrative expenses increased to 1.9% in the third quarter of 2007, from 1.2% in 2006, primarily due to lower revenues.
NINE MONTHS ENDED AUGUST 31, 2007 COMPARED TO
NINE MONTHS ENDED AUGUST 31, 2006
Homebuilding
Revenues from home sales decreased 31% in the nine months ended August 31, 2007 to $7.5 billion from $10.8 billion in 2006. Revenues were lower primarily due to a 27% decrease in the number of home deliveries and a 7% decrease in the average sales price of homes delivered in 2007. New home deliveries, excluding unconsolidated entities, decreased to 24,772 homes in the nine months ended August 31, 2007 from 33,747 homes last year. In the nine months ended August 31, 2007, new home deliveries were lower in each of the Company’s homebuilding segments and Homebuilding Other, compared to 2006. The average sales price of homes delivered decreased to $299,000 in the nine months ended August 31, 2007 from $321,000 in 2006 primarily due to higher sales incentives offered to homebuyers ($45,000 per home delivered in 2007, compared to $25,900 per home delivered in 2006).
Gross margins on home sales excluding inventory valuation adjustments were $1.1 billion, or 14.4%, in the nine months ended August 31, 2007, compared to $2.4 billion, or 22.5%, in 2006. Gross margin percentage on home sales decreased compared to last year in all of the Company’s homebuilding segments and Homebuilding Other primarily due to higher sales incentives offered to homebuyers. Gross margins on home sales were $555.1 million, or 7.4%, in the nine months ended August 31, 2007, which included $523.0 million of FAS 144 valuation adjustments, compared to gross margins on home sales of $2.4 billion, or 22.2%, in the nine months ended August 31, 2006, which included $40.7 million of FAS 144 valuation adjustments.
Selling, general and administrative expenses were reduced by $211.1 million, or 16%, in the nine months ended August 31, 2007, compared to the same period last year, primarily due to reductions in associate headcount and variable compensation expense.
As a percentage of revenues from home sales, selling, general and administrative expenses increased to 14.3% in the nine months ended August 31, 2007, from 11.8% in 2006. The 250 basis point increase was primarily due to lower revenues.
Loss on land sales totaled $480.0 million in the nine months ended August 31, 2007, which included $197.2 million of FAS 144 valuation adjustments and $312.4 million of write-offs of deposits and pre-acquisition costs related to 24,400 homesites under option that the Company does not intend to purchase. In the nine months ended August 31, 2006, gross profit from land sales totaled $89.9 million, net of $35.8 million of FAS 144 valuation adjustments and $41.1 million of write-offs of deposits and pre-acquisition costs related to 14,800 homesites that were under option.
Equity in loss from unconsolidated entities was $168.1 million in the nine months ended August 31, 2007, which included $172.7 million of FAS 144 valuation adjustments to the Company’s investments in unconsolidated entities, compared to equity in earnings from unconsolidated entities of $47.1 million, net of $16.7 million of FAS 144 valuation adjustments to the Company’s investments in unconsolidated entities last year. Management fees and other expense, net, totaled $9.5 million in the nine months ended August 31, 2007 (including $46.4 million of valuation adjustments and $16.5 million of goodwill write-offs, partially offset by the recognition of $24.7 million of profit deferred at the time of the recapitalization of the LandSource joint venture), compared to management fees and other income, net of $57.7 million in 2006. Minority interest expense, net was $3.2 million and $12.1 million, respectively, in the nine months ended August 31, 2007 and 2006. Sales of land, equity in earnings (loss) from unconsolidated entities, management fees and other income (expense), net and minority interest expense, net may vary significantly from period to period depending on the timing of land sales and other transactions entered into by the Company and unconsolidated entities in which it has investments.
In February 2007, the Company’s LandSource joint venture admitted MW Housing Partners as a new strategic partner. The transaction resulted in a cash distribution to the Company of $707.6 million. The Company’s resulting ownership of LandSource is 16%. If LandSource reaches certain financial targets, the Company will have a disproportionate share of the entity’s future positive net cash flow. As a result of the recapitalization, the Company recognized a pretax gain of $175.9 million in 2007 and could potentially recognize additional profits in future years, in addition to profits from its continuing ownership interest.
Financial Services
Operating earnings for the Financial Services segment were $24.8 million in the nine months ended August 31, 2007, compared to $106.9 million last year, which included a $17.7 million pretax gain generated from monetizing the segment’s personal lines insurance policies. The decrease was primarily due to a decline in profitability from both the segment’s mortgage and title operations and $27.9 million of partial write-offs of land seller notes receivable. The decline in profitability was due to the overall weakness in the homebuilding market, which led to a decrease in volume and transactions for the mortgage and title operations compared to last year.
Corporate General and Administrative Expenses
Corporate general and administrative expenses were reduced by $21.8 million, or 14%, for the nine months ended August 31, 2007, compared to 2006. As a percentage of total revenues, corporate general and administrative expenses increased to 1.7% in the nine months ended August 31, 2007, from 1.3% in the same period last year, primarily due to lower revenues.
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 primarily mortgage financing, title insurance and closing services for both buyers of the Company’s homes and others. 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.
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. These forward-looking statements include statements regarding our business, financial condition, results of operations, strategies and prospects. 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. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described under the caption “Risk Factors” in Item 1A of our Annual Report on Form 10-K for our fiscal year ended November 30, 2006. We do not undertake any obligation to update forward-looking statements.
A conference call to discuss the Company’s third quarter earnings will be held at 11:00 a.m. Eastern time on Tuesday, September 25, 2007. 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 320-365-3844 and entering 887014 as the confirmation number.
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LENNAR CORPORATION AND SUBSIDIARIES
Selected Revenues and Earnings Information
(In thousands, except per share amounts)
(unaudited)
| | | | | | | | | | | |
| | | Three Months Ended
August 31, | | Nine Months Ended
August 31, |
| | | 2007 | | | 2006 | | 2007 | | | 2006 |
Revenues: | | | | | | | | | | | |
Homebuilding | | $ | 2,229,188 | | | 3,996,791 | | 7,634,168 | | | 11,520,811 |
Financial services | | | 112,665 | | | 185,644 | | 375,708 | | | 479,786 |
| | | | | | | | | | | |
Total revenues | | $ | 2,341,853 | | | 4,182,435 | | 8,009,876 | | | 12,000,597 |
| | | | | | | | | | | |
| | | | | | | | | | | |
Homebuilding operating earnings (loss) | | $ | (787,698 | ) | | 317,222 | | (999,388 | ) | | 1,305,507 |
Financial services operating earnings (loss) | | | (5,245 | ) | | 61,694 | | 24,834 | | | 106,910 |
Corporate general and administrative expenses | | | 44,700 | | | 50,861 | | 137,436 | | | 159,284 |
| | | | | | | | | | | |
Earnings (loss) before provision (benefit) for income taxes | | | (837,643 | ) | | 328,055 | | (1,111,990 | ) | | 1,253,133 |
Provision (benefit) for income taxes | | | (323,791 | ) | | 121,380 | | (422,556 | ) | | 463,659 |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net earnings (loss) | | $ | (513,852 | ) | | 206,675 | | (689,434 | ) | | 789,474 |
| | | | | | | | | | | |
| | | | | | | | | | | |
Average shares outstanding: | | | | | | | | | | | |
Basic | | | 157,973 | | | 157,634 | | 157,600 | | | 158,344 |
Diluted | | | 157,973 | | | 159,225 | | 157,600 | | | 162,231 |
| | | | | | | | | | | |
Earnings (loss) per share: | | | | | | | | | | | |
Basic | | $ | (3.25 | ) | | 1.31 | | (4.37 | ) | | 4.99 |
| | | | | | | | | | | |
Diluted | | $ | (3.25 | ) | | 1.30 | | (4.37 | ) | | 4.88 |
| | | | | | | | | | | |
| | | | | | | | | | | |
Supplemental information: | | | | | | | | | | | |
Interest incurred (1) | | $ | 45,191 | | | 59,453 | | 157,460 | | | 171,940 |
EBIT before valuation adjustments and write-offsof option deposits and pre-acquisition costs, goodwilland financial services notes receivable (2): | | | | | | | | | | | |
Earnings (loss) before provision (benefit) for income taxes | | $ | (837,643 | ) | | 328,055 | | (1,111,990 | ) | | 1,253,133 |
Interest expense | | | 40,299 | | | 60,868 | | 155,659 | | | 177,960 |
Valuation adjustments and write-offs of option deposits and pre- acquisition costs, goodwill and financial services notes receivable | | | 856,758 | | | 76,170 | | 1,296,101 | | | 134,325 |
| | | | | | | | | | | |
EBIT before valuation adjustments and write-offsof option deposits and pre-acquisition costs,goodwill and financial services notes receivable | | $ | 59,414 | | | 465,093 | | 339,770 | | | 1,565,418 |
| | | | | | | | | | | |
| (1) | Amount represents interest incurred related to homebuilding debt, which is capitalized to inventories and relieved as cost of sales when homes are delivered or land is sold. |
| (2) | EBIT before valuation adjustments and write-offs of option deposits and pre-acquisition costs, goodwill and financial services notes receivable is a non-GAAP financial measure derived by adding back interest expense, valuation adjustments and write-offs of option deposits and pre-acquisition costs, goodwill and financial services notes receivable reflected in earnings (loss) before provision (benefit) for income taxes. This financial measure is used in the Company's revolving credit facility's covenant calculation. |
LENNAR CORPORATION AND SUBSIDIARIES
Homebuilding Information
(In thousands)
(unaudited)
| | | | | | | | | | | | |
| | | Three Months Ended
August 31, | | | Nine Months Ended
August 31, |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 |
Revenues: | | | | | | | | | | | | |
Sales of homes | | $ | 2,169,443 | | | 3,902,540 | | | 7,479,322 | | | 10,846,508 |
Sales of land | | | 59,745 | | | 94,251 | | | 154,846 | | | 674,303 |
| | | | | | | | | | | | |
Total revenues | | | 2,229,188 | | | 3,996,791 | | | 7,634,168 | | | 11,520,811 |
| | | | | | | | | | | | |
Costs and expenses: | | | | | | | | | | | | |
Cost of homes sold | | | 2,168,446 | | | 3,173,342 | | | 6,924,224 | | | 8,442,879 |
Cost of land sold | | | 404,444 | | | 94,547 | | | 634,808 | | | 584,425 |
Selling, general and administrative | | | 304,254 | | | 426,520 | | | 1,069,575 | | | 1,280,676 |
| | | | | | | | | | | | |
Total costs and expenses | | | 2,877,144 | | | 3,694,409 | | | 8,628,607 | | | 10,307,980 |
| | | | | | | | | | | | |
Gain on recapitalization of unconsolidated entity | | | — | | | — | | | 175,879 | | | — |
Equity in earnings (loss) from unconsolidated entities | | | (127,409 | ) | | (5,903 | ) | | (168,137 | ) | | 47,079 |
Management fees and other income (expense), net | | | (10,511 | ) | | 21,844 | | | (9,501 | ) | | 57,652 |
Minority interest expense, net | | | 1,822 | | | 1,101 | | | 3,190 | | | 12,055 |
| | | | | | | | | | | | |
Operating earnings (loss) | | $ | (787,698 | ) | | 317,222 | | | (999,388 | ) | | 1,305,507 |
| | | | | | | | | | | | |
LENNAR CORPORATION AND SUBSIDIARIES
Valuation Adjustments and Write-offs
(In thousands)
(unaudited)
| | | | | | | | | |
| | | Three Months Ended
August 31, | | Nine Months Ended
August 31, |
| | | 2007 | | 2006 | | 2007 | | 2006 |
FAS 144 valuation adjustments to finished homes, CIP and land the Company intends to build homes on: | | | | | | | | | |
East | | $ | 92,542 | | 10,918 | | 211,950 | | 16,816 |
Central | | | 35,645 | | — | | 63,112 | | 1,578 |
West | | | 149,893 | | 19,292 | | 216,071 | | 20,507 |
Other | | | 25,056 | | 1,802 | | 31,899 | | 1,802 |
| | | | | | | | | |
Total FAS 144 valuation adjustments to finished homes,CIP and land the Company intends to build homes on | | | 303,136 | | 32,012 | | 523,032 | | 40,703 |
| | | | | | | | | |
FAS 144 valuation adjustments to land the Company intends to sell to third parties: | | | | | | | | | |
East | | | 32,228 | | 5,116 | | 72,306 | | 8,137 |
Central | | | 16,334 | | 614 | | 19,044 | | 13,319 |
West | | | 41,242 | | — | | 64,041 | | — |
Other | | | 24,755 | | 6,084 | | 41,827 | | 14,311 |
| | | | | | | | | |
Total FAS 144 valuation adjustments to land the Company intends to sell to
third parties | | | 114,559 | | 11,814 | | 197,218 | | 35,767 |
| | | | | | | | | |
Write-offs of option deposits and pre-acquisition costs: | | | | | | | | | |
East | | | 44,553 | | 3,955 | | 74,331 | | 7,122 |
Central | | | 38,205 | | 2,232 | | 49,413 | | 2,822 |
West | | | 139,719 | | 8,522 | | 164,459 | | 16,786 |
Other | | | 20,037 | | 1,109 | | 24,182 | | 14,411 |
| | | | | | | | | |
Total write-offs of option deposits and pre-acquisition costs | | | 242,514 | | 15,818 | | 312,385 | | 41,141 |
| | | | | | | | | |
FAS 144 valuation adjustments to investments in unconsolidated entities: | | | | | | | | | |
East | | | 3,178 | | 926 | | 7,011 | | 926 |
Central | | | 9,445 | | — | | 10,588 | | — |
West | | | 126,062 | | 14,395 | | 155,113 | | 14,395 |
Other | | | — | | 1,205 | | — | | 1,393 |
| | | | | | | | | |
Total FAS 144 valuation adjustments to investments in unconsolidated entities | | | 138,685 | | 16,526 | | 172,712 | | 16,714 |
| | | | | | | | | |
Valuation adjustments to investments in unconsolidated entities: | | | | | | | | | |
East | | | 19,850 | | — | | 26,719 | | — |
Central | | | 5,752 | | — | | 5,752 | | — |
West | | | 2,990 | | — | | 10,396 | | — |
Other | | | 3,505 | | — | | 3,505 | | — |
| | | | | | | | | |
Total valuation adjustments to investments in unconsolidated entities | | | 32,097 | | — | | 46,372 | | — |
| | | | | | | | | |
Goodwill write-offs: | | | | | | | | | |
East | | | — | | — | | — | | — |
Central | | | 2,828 | | — | | 2,828 | | — |
West | | | — | | — | | — | | — |
Other | | | 13,669 | | — | | 13,669 | | — |
| | | | | | | | | |
Total goodwill write-offs | | | 16,497 | | — | | 16,497 | | — |
| | | | | | | | | |
Financial services write-offs of notes receivable | | | 9,270 | | — | | 27,885 | | — |
| | | | | | | | | |
Total valuation adjustments and write-offs of option deposits and pre-acquisition costs, goodwill and financial services notes receivable | | $ | 856,758 | | 76,170 | | 1,296,101 | | 134,325 |
| | | | | | | | | |
LENNAR CORPORATION AND SUBSIDIARIES
Summary of Deliveries, New Orders and Backlog
(Dollars in thousands)
(unaudited)
| | | | | | | | | |
| | | Three Months Ended
August 31, | | At or for the
Nine Months Ended
August 31, |
| | | 2007 | | 2006 | | 2007 | | 2006 |
Deliveries: | | | | | | | | | |
East | | 2,089 | | 3,679 | | | 7,753 | | 10,083 |
Central | | 2,739 | | 4,485 | | | 9,137 | | 12,439 |
West | | 2,043 | | 3,565 | | | 6,884 | | 9,923 |
Other | | 765 | | 1,309 | | | 2,465 | | 3,117 |
| | | | | | | | | |
Total | | 7,636 | | 13,038 | | | 26,239 | | 35,562 |
| | | | | | | | | |
|
| Of the total deliveries listed above, 370 and 1,467, respectively, represent deliveries from unconsolidated entities for the three and nine months ended August 31, 2007, compared to 701 and 1,815 deliveries in the same periods last year. |
| | | | |
New Orders: | | | | | | | | | |
East | | 1,552 | | 2,747 | | | 6,295 | | 8,615 |
Central | | 2,064 | | 4,353 | | | 7,073 | | 12,419 |
West | | 1,591 | | 2,937 | | | 5,347 | | 8,761 |
Other | | 597 | | 1,019 | | | 2,277 | | 2,811 |
| | | | | | | | | |
Total | | 5,804 | | 11,056 | | | 20,992 | | 32,606 |
| | | | | | | | | |
|
| Of the total new orders listed above, 232 and 968, respectively, represent new orders from unconsolidated entities for the three and nine months ended August 31, 2007, compared to 532 and 1,433 new orders in the same periods last year. |
| | | | |
Backlog - Homes: | | | | | | | | | |
East | | | | | | | 2,687 | | 6,240 |
Central | | | | | | | 1,534 | | 4,527 |
West | | | | | | | 1,454 | | 4,043 |
Other | | | | | | | 692 | | 1,198 |
| | | | | | | | | |
Total | | | | | | | 6,367 | | 16,008 |
| | | | | | | | | |
|
| Of the total homes in backlog listed above, 550 represents homes in backlog from unconsolidated entities at August 31, 2007, compared to 1,335 homes in backlog at August 31, 2006. |
| | | | |
Backlog - Dollar Value: | | | | | | | | | |
East | | | | | | $ | 922,909 | | 2,190,137 |
Central | | | | | | | 340,236 | | 1,089,275 |
West | | | | | | | 686,393 | | 1,866,180 |
Other | | | | | | | 276,510 | | 458,463 |
| | | | | | | | | |
Total | | | | | | $ | 2,226,048 | | 5,604,055 |
| | | | | | | | | |
Of the total dollar value of homes in backlog listed above, $268,698 represents the backlog dollar value from unconsolidated entities at August 31, 2007, compared to $577,630 of backlog dollar value at August 31, 2006.
Lennar's reportable homebuilding segments and homebuilding other consist of homebuilding divisions located in the following states:
| | |
| East: | | Florida, Maryland, New Jersey and Virginia |
| |
| Central: | | Arizona, Colorado and Texas |
| |
| West: | | California and Nevada |
| |
| Other: | | Illinois, Minnesota, New York, North Carolina and South Carolina |
LENNAR CORPORATION AND SUBSIDIARIES
Supplemental Data
(Dollars in thousands)
(unaudited)
| | | | | | | |
| | | August 31, | |
| | | 2007 | | | 2006 | |
Homebuilding debt | | $ | 2,571,291 | | | 2,784,074 | |
Stockholders' equity | | | 5,097,259 | | | 5,930,798 | |
| | | | | | | |
Total capital | | $ | 7,668,550 | | | 8,714,872 | |
| | | | | | | |
Homebuilding debt to total capital | | | 33.5 | % | | 31.9 | % |
| | | | | | | |
| | | | | | | |
Homebuilding debt | | $ | 2,571,291 | | | 2,784,074 | |
Less: Homebuilding cash | | | 128,049 | | | 143,677 | |
| | | | | | | |
Net homebuilding debt | | $ | 2,443,242 | | | 2,640,397 | |
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Net homebuilding debt to total capital (1) | | | 32.4 | % | | 30.8 | % |
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| (1) | Net homebuilding debt to total capital consists of net homebuilding debt (homebuilding debt less homebuilding cash) divided by total capital (net homebuilding debt plus stockholders' equity). |
