Exhibit 99.1
| | | | |
| | | | Contact: |
| | | | Scott Shipley |
| | | | Investor Relations |
| | | | Lennar Corporation |
| | | | (305) 485-2054 |
FOR IMMEDIATE RELEASE
Lennar Reports Third Quarter Results
| | • | | Revenues of $1.1 billion – down 53% |
| | • | | Loss per share of $0.56 (includes a $0.53 per share charge related to valuation adjustments and other write-offs) |
| | • | | Gross margin on home sales: |
| | • | | 18.0% (excluding SFAS 144 valuation adjustments of $32.3 million) – up 400 basis points |
| | • | | 14.8% (including SFAS 144 valuation adjustments) – up 1,480 basis points |
| | • | | Operating margin on home sales: |
| | • | | 2.3% (excluding SFAS 144 valuation adjustments) – up 230 basis points |
| | • | | -0.9% (including SFAS 144 valuation adjustments) – up 1,310 basis points |
| | • | | Selling, general and administrative expenses reduced by $148.0 million – down 49% |
| | • | | Homebuilding cash of $857.1 million as of August 31, 2008 |
| | • | | No outstanding borrowings under the Company’s credit facility as of August 31, 2008 |
| | • | | Homebuilding debt to total capital of 40.5% (net homebuilding debt to total capital of 30.2%) |
| | • | | Maximum recourse indebtedness related to the Company’s unconsolidated entities of $630.0 million – reduced by $1.1 billion, or 64%, since its peak at November 30, 2006 |
| | • | | Deliveries of 3,791 homes – down 50% |
| | • | | New orders of 3,387 homes – down 42%; cancellation rate of 27% |
| | • | | Backlog dollar value of $1.0 billion – down 53% |
Miami, September 23, 2008 — Lennar Corporation (NYSE: LEN and LEN.B), one of the nation’s largest homebuilders, today reported results for its third quarter ended August 31, 2008. Third quarter net loss in 2008 was $89.0 million, or $0.56 per diluted share, compared to third quarter net loss of $513.9 million, or $3.25 per diluted share, in 2007.
Stuart Miller, President and Chief Executive Officer of Lennar Corporation, said, “While we expected the housing market to remain constrained throughout the third quarter, the weakness in the market actually accelerated as a result of increased foreclosures, weakened consumer confidence and tightened mortgage lending standards. Although the Federal government has recognized that stabilizing the housing market is critical to solving the current credit crisis, the government has yet to act meaningfully to help stabilize home prices. While we were encouraged that Congress passed the July housing stimulus bill as a first step, additional government actions will be necessary to help facilitate housing market stabilization, which in turn will help stabilize the financial markets as well.”
(more)
2-2-2
Mr. Miller continued, “While the housing market continues to search for a bottom, we have been making significant progress to improve our basic operations. We continued to focus on the execution of an efficient homebuilding model through the repositioning of our product to meet today’s consumer demand and by aggressively reducing our construction costs. This focus resulted in our third quarter, pre-impairment gross margin percentage improvement of 400 basis points year-over-year to 18.0%. As a result of a steeper decline in revenues than we anticipated, we did not achieve a reduction in S,G&A expenses as a percentage of revenue from the second quarter. However, we did continue to make significant progress towards our goal of right-sizing our business by cutting our selling, general and administrative expenses by approximately one-half, compared to a year ago. We have taken further actions during the quarter, including consolidating divisions, which should enable us to achieve a significant improvement in our S,G&A percentage going forward.”
“We ended our third quarter with $857 million in cash and no outstanding borrowings under our credit facility, while we reduced our maximum unconsolidated joint venture recourse debt to $630 million, a decrease of 22% from the end of our second quarter.”
Mr. Miller concluded, “As we enter the fourth quarter of 2008, we remain well positioned with a strong balance sheet and properly scaled operations to navigate the current market as a leaner and more efficient homebuilder.”
RESULTS OF OPERATIONS
THREE MONTHS ENDED AUGUST 31, 2008 COMPARED TO
THREE MONTHS ENDED AUGUST 31, 2007
Homebuilding
Revenues from home sales decreased 54% in the third quarter of 2008 to $995.7 million from $2.2 billion in 2007. Revenues were lower primarily due to a 49% decrease in the number of home deliveries and a 9% decrease in the average sales price of homes delivered in 2008. New home deliveries, excluding unconsolidated entities, decreased to 3,694 homes in the third quarter of 2008 from 7,266 homes last year. In the third quarter of 2008, new home deliveries were lower in each of the Company’s homebuilding segments and Homebuilding Other, compared to 2007. The average sales price of homes delivered decreased to $270,000 in the third quarter of 2008 from $296,000 in the same period last year, due to reduced pricing. Sales incentives offered to homebuyers were $45,900 and $46,000 per home delivered, respectively, in the third quarter of 2008 and 2007.
3-3-3
Gross margins on home sales excluding SFAS 144 valuation adjustments were $179.4 million, or 18.0%, in the third quarter of 2008, compared to $304.1 million, or 14.0%, in the third quarter of 2007. Gross margin percentage on home sales, excluding SFAS 144 valuation adjustments, improved compared to last year, primarily due to the Company’s lower inventory basis and continued focus on repositioning its product and reducing construction costs. The largest gross margin percentage improvement was experienced in the Company’s Homebuilding East segment. Gross margins on home sales were $147.1 million, or 14.8%, in the third quarter of 2008, which included $32.3 million of SFAS 144 valuation adjustments, compared to gross margins on home sales of $1.0 million, or 0.0%, in the third quarter of 2007, which included $303.1 million of SFAS 144 valuation adjustments. Gross margins on home sales excluding SFAS 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 $148.0 million, or 49%, in the third quarter of 2008, compared to the same period last year, primarily due to reductions in associate headcount, variable selling expense and fixed costs. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 15.7% in the third quarter of 2008, from 14.0% in 2007, which was due to lower revenues.
Losses on land sales totaled $28.8 million in the third quarter of 2008, which included $21.4 million of SFAS 144 valuation adjustments and $10.9 million of write-offs of deposits and pre-acquisition costs related to approximately 900 homesites under option that the Company does not intend to purchase. In the third quarter of 2007, losses on land sales totaled $344.7 million, which included $114.6 million of SFAS 144 valuation adjustments and $242.5 million of write-offs of deposits and pre-acquisition costs related to approximately 15,000 homesites that were under option.
Equity in loss from unconsolidated entities was $11.0 million in the third quarter of 2008, which included $2.9 million of SFAS 144 valuation adjustments related to assets of unconsolidated entities in which the Company has investments, compared to equity in loss from unconsolidated entities of $127.4 million in the third quarter of 2007, which included $138.7 million of SFAS 144 valuation adjustments related to assets of unconsolidated entities in which the Company has investments.
Management fees and other expense, net, totaled $52.2 million in the third quarter of 2008, which included $40.0 million of APB 18 valuation adjustments to the Company’s investments in unconsolidated entities and $5.6 million of write-offs of notes receivable, compared to management fees and other expense, net, of $10.5 million in the third quarter of 2007, which included $32.1 million of APB 18 valuation adjustments to the Company’s investments in unconsolidated entities 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.
Minority interest income (expense), net was $9.0 million in the third quarter of 2008, which included $7.9 million of minority interest income as a result of a $15.9 million SFAS 144 valuation adjustment to inventory of a 50%-owned consolidated joint venture, compared to minority interest income (expense), net of ($1.8) million in the third quarter of 2007.
4-4-4
Sales of land, equity in loss from unconsolidated entities, management fees and other expense, net and minority interest income (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 $12.9 million in the third quarter of 2008, compared to an operating loss of $5.2 million in the same period last year. The operating loss was due to a $27.2 million write-off of goodwill related to the segment’s mortgage operations. This loss was partially offset by increased profitability in the mortgage operations primarily due to higher profits per loan resulting from an increase in FHA loans. There were $9.3 million in write-offs of land seller notes receivable in third quarter of 2007, compared to no write-offs of land seller notes receivable in the third quarter of 2008.
Corporate General and Administrative Expenses
Corporate general and administrative expenses were reduced by $10.7 million, or 24%, in the third quarter of 2008, compared to the same period last year. As a percentage of total revenues, corporate general and administrative expenses increased to 3.1% in the third quarter of 2008, from 1.9% in 2007, due to lower revenues.
NINE MONTHS ENDED AUGUST 31, 2008 COMPARED TO
NINE MONTHS ENDED AUGUST 31, 2007
Homebuilding
Revenues from home sales decreased 60% in the nine months ended August 31, 2008 to $3.0 billion from $7.5 billion in 2007. Revenues were lower primarily due to a 56% decrease in the number of home deliveries and an 8% decrease in the average sales price of homes delivered in 2008. New home deliveries, excluding unconsolidated entities, decreased to 10,860 homes in the nine months ended August 31, 2008 from 24,772 homes last year. In the nine months ended August 31, 2008, new home deliveries were lower in each of the Company’s homebuilding segments and Homebuilding Other, compared to 2007. The average sales price of homes delivered decreased to $274,000 in the nine months ended August 31, 2008 from $299,000 in 2007, due to reduced pricing. Sales incentives offered to homebuyers were $47,500 per home delivered in the nine months ended August 31, 2008, compared to $45,000 per home delivered in the same period last year.
Gross margins on home sales excluding SFAS 144 valuation adjustments were $504.3 million, or 17.0%, in the nine months ended August 31, 2008, compared to $1.1 billion, or 14.4%, in the third quarter of 2007. Gross margin percentage on home sales, excluding SFAS 144 valuation adjustments, improved compared to last year primarily due to the Company’s lower inventory basis and continued focus on repositioning its product and reducing construction costs. The largest gross margin percentage improvement was experienced in the Company’s Homebuilding East segment. Gross margins on home sales were $372.2 million, or 12.5%, in the
5-5-5
nine months ended August 31, 2008, which included $132.1 million of SFAS 144 valuation adjustments, compared to gross margins on home sales of $555.1 million, or 7.4%, in the nine months ended August 31, 2007, which included $523.0 million of SFAS 144 valuation adjustments.
Selling, general and administrative expenses were reduced by $581.3 million, or 54%, in the nine months ended August 31, 2008, compared to the same period last year, primarily due to reductions in associate headcount, variable selling expense and fixed costs. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 16.5% in the nine months ended August 31, 2008, from 14.3% in 2007, which was due to lower revenues.
Losses on land sales totaled $60.7 million in the nine months ended August 31, 2008, which included $39.0 million of SFAS 144 valuation adjustments and $34.3 million of write-offs of deposits and pre-acquisition costs related to approximately 5,500 homesites under option that the Company does not intend to purchase. In the nine months ended August 31, 2007, losses on land sales totaled $480.0 million, which included $197.2 million of SFAS 144 valuation adjustments and $312.4 million of write-offs of deposits and pre-acquisition costs related to approximately 24,400 homesites that were under option.
Equity in loss from unconsolidated entities was $52.9 million in the nine months ended August 31, 2008, which included $29.9 million of SFAS 144 valuation adjustments related to assets of unconsolidated entities in which the Company has investments, compared to equity in loss from unconsolidated entities of $168.1 million in the nine months ended August 31, 2007, which included $172.7 million of SFAS 144 valuation adjustments related to assets of unconsolidated entities in which the Company has investments.
Management fees and other expense, net totaled $121.9 million in the nine months ended August 31, 2008, which included $116.5 million of APB 18 valuation adjustments to the Company’s investments in unconsolidated entities and $5.6 million of write-offs of notes receivable, compared to management fees and other expense, net of $9.5 million in the nine months ended August 31, 2007, which included $46.4 million of APB 18 valuation adjustments to the Company’s investments in unconsolidated entities 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.
Minority interest income (expense), net was $9.0 million in the nine months ended August 31, 2008, which included $7.9 million of minority interest income as a result of a $15.9 million SFAS 144 valuation adjustment to inventory of a 50%-owned consolidated joint venture, compared to minority interest income (expense), net of ($3.2) million in the nine months ended August 31, 2007.
Sales of land, equity in loss from unconsolidated entities, management fees and other expense, net and minority interest income (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.
6-6-6
Financial Services
Operating loss for the Financial Services segment was $25.6 million in the nine months ended August 31, 2008, compared to operating earnings of $24.8 million in the same period last year. The decline in profitability was primarily due to a goodwill write-off of $27.2 million related to the segment’s mortgage operations and lower transactions in the segment’s title and mortgage operations, compared to last year as a result of the overall weakness in the housing market. There were $27.9 million in write-offs of land seller notes receivables during the nine months ended August 31, 2007, compared to no write-offs of land seller notes receivables during the nine months ended August 31, 2008.
Corporate General and Administrative Expenses
Corporate general and administrative expenses were reduced by $39.0 million, or 28%, for the nine months ended August 31, 2008, compared to 2007. As a percentage of total revenues, corporate general and administrative expenses increased to 3.0% in the nine months ended August 31, 2008, from 1.7% in the same period last year, 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, cash flows, 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, 2007. We do not undertake any obligation to update forward-looking statements, except as required by Federal securities laws.
A conference call to discuss the Company’s third quarter earnings will be held at 11:00 a.m. Eastern time on Tuesday, September 23, 2008. 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 402-998-1175 and entering 5932669 as the confirmation number.
###
7-7-7
LENNAR CORPORATION AND SUBSIDIARIES
Selected Revenues and Operational Information
(In thousands, except per share amounts)
(unaudited)
| | | | | | | | | | | | | |
| | | Three Months Ended
August 31, | | | Nine Months Ended
August 31, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
Revenues: | | | | | | | | | | | | | |
Homebuilding | | $ | 1,016,156 | | | 2,229,188 | | | 3,056,476 | | | 7,634,168 | |
Financial services | | | 90,384 | | | 112,665 | | | 240,893 | | | 375,708 | |
| | | | | | | | | | | | | |
Total revenues | | $ | 1,106,540 | | | 2,341,853 | | | 3,297,369 | | | 8,009,876 | |
| | | | | | | | | | | | | |
Homebuilding operating loss | | $ | (92,194 | ) | | (787,698 | ) | | (342,558 | ) | | (999,388 | ) |
Financial services operating earnings (loss) | | | (12,861 | ) | | (5,245 | ) | | (25,567 | ) | | 24,834 | |
Corporate general and administrative expenses | | | (34,047 | ) | | (44,700 | ) | | (98,453 | ) | | (137,436 | ) |
| | | | | | | | | | | | | |
Loss before benefit for income taxes | | | (139,102 | ) | | (837,643 | ) | | (466,578 | ) | | (1,111,990 | ) |
Benefit for income taxes | | | 50,138 | | | 323,791 | | | 168,482 | | | 422,556 | |
| | | | | | | | | | | | | |
Net loss | | $ | (88,964 | ) | | (513,852 | ) | | (298,096 | ) | | (689,434 | ) |
| | | | | | | | | | | | | |
Basic and diluted average shares outstanding | | | 158,499 | | | 157,973 | | | 158,350 | | | 157,600 | |
| | | | | | | | | | | | | |
Basic and diluted loss per share | | $ | (0.56 | ) | | (3.25 | ) | | (1.88 | ) | | (4.37 | ) |
| | | | | | | | | | | | | |
Supplemental information: | | | | | | | | | | | | | |
Interest incurred (1) | | $ | 36,049 | | | 45,191 | | | 110,717 | | | 157,460 | |
| | | | | | | | | | | | | |
EBIT before valuation adjustments and write-offs of option deposits and pre-acquisition costs, goodwill and notes receivable (2): | | | | | | | | | | | | | |
Loss before benefit for income taxes | | $ | (139,102 | ) | | (837,643 | ) | | (466,578 | ) | | (1,111,990 | ) |
Interest expense | | | 27,632 | | | 40,299 | | | 97,986 | | | 155,659 | |
Valuation adjustments and write-offs of option deposits and pre-acquisition costs, goodwill and notes receivable | | | 132,280 | | | 856,758 | | | 376,611 | | | 1,296,101 | |
| | | | | | | | | | | | | |
EBIT before valuation adjustments and write-offs of option deposits and pre-acquisition costs, goodwill and notes receivable | | $ | 20,810 | | | 59,414 | | | 8,019 | | | 339,770 | |
| | | | | | | | | | | | | |
| (1) | Amount represents interest incurred related to homebuilding debt, which is primarily 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 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 notes receivable reflected in loss before benefit for income taxes. This financial measure 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. |
8-8-8
LENNAR CORPORATION AND SUBSIDIARIES
Homebuilding Information
(In thousands)
(unaudited)
| | | | | | | | | | | | | |
| | | Three Months Ended
August 31, | | | Nine Months Ended
August 31, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
Revenues: | | | | | | | | | | | | | |
Sales of homes | | $ | 995,731 | | | 2,169,443 | | | 2,967,651 | | | 7,479,322 | |
Sales of land | | | 20,425 | | | 59,745 | | | 88,825 | | | 154,846 | |
| | | | | | | | | | | | | |
Total revenues | | | 1,016,156 | | | 2,229,188 | | | 3,056,476 | | | 7,634,168 | |
| | | | | | | | | | | | | |
Costs and expenses: | | | | | | | | | | | | | |
Cost of homes sold | | | 848,609 | | | 2,168,446 | | | 2,595,468 | | | 6,924,224 | |
Cost of land sold | | | 49,273 | | | 404,444 | | | 149,526 | | | 634,808 | |
Selling, general and administrative | | | 156,298 | | | 304,254 | | | 488,288 | | | 1,069,575 | |
| | | | | | | | | | | | | |
Total costs and expenses | | | 1,054,180 | | | 2,877,144 | | | 3,233,282 | | | 8,628,607 | |
| | | | | | | | | | | | | |
Gain on recapitalization of unconsolidated entity | | | — | | | — | | | — | | | 175,879 | |
Equity in loss from unconsolidated entities | | | (10,958 | ) | | (127,409 | ) | | (52,857 | ) | | (168,137 | ) |
Management fees and other expense, net | | | (52,228 | ) | | (10,511 | ) | | (121,895 | ) | | (9,501 | ) |
Minority interest income (expense), net | | | 9,016 | | | (1,822 | ) | | 9,000 | | | (3,190 | ) |
| | | | | | | | | | | | | |
Operating loss | | $ | (92,194 | ) | | (787,698 | ) | | (342,558 | ) | | (999,388 | ) |
| | | | | | | | | | | | | |
9-9-9
LENNAR CORPORATION AND SUBSIDIARIES
Valuation Adjustments and Write-offs
(In thousands)
(unaudited)
| | | | | | | | | |
| | | Three Months Ended
August 31, | | Nine Months Ended
August 31, |
| | | 2008 | | 2007 | | 2008 | | 2007 |
SFAS 144 valuation adjustments to finished homes, CIP and land on which the Company intends to build homes: | | | | | | | | | |
East | | $ | 8,685 | | 92,542 | | 50,967 | | 211,950 |
Central | | | 2,740 | | 35,645 | | 21,901 | | 63,112 |
West | | | 18,900 | | 149,893 | | 48,960 | | 216,071 |
Other | | | 1,959 | | 25,056 | | 10,305 | | 31,899 |
| | | | | | | | | |
Total | | | 32,284 | | 303,136 | | 132,133 | | 523,032 |
| | | | | | | | | |
SFAS 144 valuation adjustments to land the Company intends to sell or has sold to third parties: | | | | | | | | | |
East (1) | | | 11,333 | | 32,228 | | 13,840 | | 72,306 |
Central | | | 1,201 | | 16,334 | | 10,879 | | 19,044 |
West | | | 622 | | 41,242 | | 5,437 | | 64,041 |
Other | | | 292 | | 24,755 | | 893 | | 41,827 |
| | | | | | | | | |
Total | | | 13,448 | | 114,559 | | 31,049 | | 197,218 |
| | | | | | | | | |
Write-offs of option deposits and pre-acquisition costs: | | | | | | | | | |
East | | | 832 | | 44,553 | | 11,010 | | 74,331 |
Central | | | 1,706 | | 38,205 | | 6,581 | | 49,413 |
West | | | 5,866 | | 139,719 | | 10,073 | | 164,459 |
Other | | | 2,458 | | 20,037 | | 6,636 | | 24,182 |
| | | | | | | | | |
Total | | | 10,862 | | 242,514 | | 34,300 | | 312,385 |
| | | | | | | | | |
Company’s share of SFAS 144 valuation adjustments related to assets of unconsolidated entities: | | | | | | | | | |
East | | | — | | 3,178 | | 7,241 | | 7,011 |
Central | | | — | | 9,445 | | 158 | | 10,588 |
West | | | 2,919 | | 126,062 | | 21,870 | | 155,113 |
Other | | | — | | — | | 597 | | — |
| | | | | | | | | |
Total | | | 2,919 | | 138,685 | | 29,866 | | 172,712 |
| | | | | | | | | |
APB 18 valuation adjustments to investments in unconsolidated entities: | | | | | | | | | |
East | | | 10,076 | | 19,850 | | 20,171 | | 26,719 |
Central | | | — | | 5,752 | | 421 | | 5,752 |
West | | | 16,647 | | 2,990 | | 82,593 | | 10,396 |
Other | | | 13,272 | | 3,505 | | 13,306 | | 3,505 |
| | | | | | | | | |
Total | | | 39,995 | | 32,097 | | 116,491 | | 46,372 |
| | | | | | | | | |
Write-offs of notes receivable: | | | | | | | | | |
West | | | 1,000 | | — | | 1,000 | | — |
Other | | | 4,596 | | — | | 4,596 | | — |
| | | | | | | | | |
Total | | | 5,596 | | — | | 5,596 | | — |
| | | | | | | | | |
Goodwill impairments: | | | | | | | | | |
Central | | | — | | 2,828 | | — | | 2,828 |
Other | | | — | | 13,669 | | — | | 13,669 |
| | | | | | | | | |
Total | | | — | | 16,497 | | — | | 16,497 |
| | | | | | | | | |
Financial services write-offs of notes receivable | | | — | | 9,270 | | — | | 27,885 |
| | | | | | | | | |
Financial services goodwill impairment | | | 27,176 | | — | | 27,176 | | — |
| | | | | | | | | |
Total valuation adjustments and write-offs of option deposits and pre-acquisitions costs, goodwill and notes receivable | | $ | 132,280 | | 856,758 | | 376,611 | | 1,296,101 |
| | | | | | | | | |
| (1) | For the three and nine months ended August 31, 2008, SFAS 144 valuation adjustments to land the Company intends to sell or has sold to third parties has been reduced by $7.9 million of minority interest income recorded as a result of a $15.9 million SFAS 144 valuation adjustment to inventory of a 50%—owned consolidated joint venture. |
10-10-10
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, |
| | | 2008 | | 2007 | | 2008 | | 2007 |
Deliveries: | | | | | | | | | |
East | | 1,197 | | 2,089 | | | 3,440 | | 7,753 |
Central | | 1,319 | | 2,739 | | | 3,782 | | 9,137 |
West | | 885 | | 2,043 | | | 2,874 | | 6,884 |
Other | | 390 | | 765 | | | 1,121 | | 2,465 |
| | | | | | | | | |
Total | | 3,791 | | 7,636 | | | 11,217 | | 26,239 |
| | | | | | | | | |
|
| Of the total deliveries listed above, 97 and 357, respectively, represent deliveries from unconsolidated entities for the three and nine months ended August 31, 2008, compared to 370 and 1,467 deliveries in the same periods last year. |
| | | | |
New Orders: | | | | | | | | | |
East | | 944 | | 1,552 | | | 3,190 | | 6,295 |
Central | | 1,241 | | 2,064 | | | 3,778 | | 7,073 |
West | | 870 | | 1,591 | | | 2,762 | | 5,347 |
Other | | 332 | | 597 | | | 1,098 | | 2,277 |
| | | | | | | | | |
Total | | 3,387 | | 5,804 | | | 10,828 | | 20,992 |
| | | | | | | | | |
|
| Of the total new orders listed above, 50 and 212, respectively, represent new orders from unconsolidated entities for the three and nine months ended August 31, 2008, compared to 232 and 968 new orders in the same periods last year. |
| | |
Backlog - Homes: | | | | | |
East | | | 1,541 | | 2,687 |
Central | | | 870 | | 1,534 |
West | | | 770 | | 1,454 |
Other | | | 373 | | 692 |
| | | | | |
Total | | | 3,554 | | 6,367 |
| | | | | |
|
| Of the total homes in backlog listed above, 132 represents homes in backlog from unconsolidated entities at August 31, 2008, compared to 550 homes in backlog at August 31, 2007. |
| | |
Backlog - Dollar Value: | | | | | |
East | | $ | 416,889 | | 922,909 |
Central | | | 187,789 | | 340,236 |
West | | | 306,975 | | 686,393 |
Other | | | 136,031 | | 276,510 |
| | | | | |
Total | | $ | 1,047,684 | | 2,226,048 |
| | | | | |
Of the total dollar value of homes in backlog listed above, $66,768 represents the backlog dollar value from unconsolidated entities at August 31, 2008, compared to $268,698 of backlog dollar value at August 31, 2007.
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 |
11-11-11
LENNAR CORPORATION AND SUBSIDIARIES
Supplemental Data
(Dollars in thousands)
(unaudited)
| | | | | | | |
| | | August 31, | |
| | | 2008 | | | 2007 | |
Homebuilding debt | | $ | 2,338,697 | | | 2,571,291 | |
Stockholders’ equity | | | 3,431,898 | | | 5,097,259 | |
| | | | | | | |
Total capital | | $ | 5,770,595 | | | 7,668,550 | |
| | | | | | | |
Homebuilding debt to total capital | | | 40.5 | % | | 33.5 | % |
| | | | | | | |
Homebuilding debt | | $ | 2,338,697 | | | 2,571,291 | |
Less: Homebuilding cash | | | 857,050 | | | 128,049 | |
| | | | | | | |
Net homebuilding debt | | $ | 1,481,647 | | | 2,443,242 | |
| | | | | | | |
Net homebuilding debt to total capital (1) | | | 30.2 | % | | 32.4 | % |
| | | | | | | |
| (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). |
