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Form 8-K LENNAR CORP /NEW/ For: Jun 21

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June 21, 2022 10:04 AM EDT
Exhibit 99.1




Contact:
Allison Bober
Investor Relations
Lennar Corporation
(305) 485-2038
FOR IMMEDIATE RELEASE

Lennar Reports Second Quarter 2022 Results
2022 Second Quarter Highlights - comparisons to the prior year quarter
•Net earnings per diluted share increased 69% to $4.49
◦Increased 59% to $4.69, excluding mark-to-market losses on technology investments in both years and the gain on the sale of the Company's residential solar business in the prior year
•Net earnings increased 59% to $1.3 billion
◦Increased 49% to $1.4 billion, excluding mark-to-market losses on technology investments in both years and the gain on the sale of the Company's residential solar business in the prior year
•Deliveries increased 14% to 16,549 homes
•New orders increased 4% to 17,792 homes; new orders dollar value increased 20% to $9.1 billion
•Backlog increased 16% to 28,624 homes; backlog dollar value increased 33% to $14.7 billion
•Total revenues increased 30% to $8.4 billion
•Homebuilding operating earnings increased to $1.9 billion, compared to operating earnings of $1.1 billion
◦Gross margin on home sales improved 340 basis points ("bps") to 29.5%
◦S,G&A expenses as a % of revenues from home sales improved 150 bps to 6.1%
◦Net margin on home sales improved 490 bps to 23.4%
•Financial Services operating earnings of $103.9 million, compared to operating earnings of $121.3 million
•Multifamily operating earnings of $0.7 million, compared to operating earnings of $22.4 million
•Lennar Other operating loss of $108.4 million, compared to operating loss of $54.1 million
•Homebuilding cash and cash equivalents of $1.3 billion
•Controlled homesites increased to 62%, compared to 50%
•No borrowings under the Company's $2.575 billion revolving credit facility
•Homebuilding debt to total capital improved to 17.7%, compared to 23.1%
•Repurchased 4.1 million shares of Lennar common stock for $320.6 million
(more)

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Miami, June 21, 2022 -- Lennar Corporation (NYSE: LEN and LEN.B), one of the nation’s leading homebuilders, today reported results for its second quarter ended May 31, 2022. Second quarter net earnings attributable to Lennar in 2022 were $1.3 billion, or $4.49 per diluted share, compared to second quarter net earnings attributable to Lennar in 2021 of $831.4 million, or $2.65 per diluted share. Excluding mark-to-market losses on technology investments in both years and a gain on the sale of the Company's residential solar business in the prior year, second quarter net earnings attributable to Lennar in 2022 were $1.4 billion, or $4.69 per diluted share, compared to second quarter net earnings attributable to Lennar in 2021 of $923.6 million, or $2.95 per diluted share.
Stuart Miller, Executive Chairman of Lennar, said, "At this complicated moment in the market, we are pleased to report second quarter earnings of $1.3 billion, or $4.49 per diluted share, compared to $831.4 million, or $2.65 per diluted share for the second quarter last year. While our new orders grew 4% compared to last year's second quarter, we achieved a homebuilding gross margin of 29.5% and homebuilding S,G&A of 6.1%, leading to a 23.4% net margin, even as materials costs and wages have increased. Our home deliveries were 16,549 and above the high end of our guidance given at the beginning of the quarter.”
“While our second quarter results demonstrate strength and excellent performance throughout the quarter, the weight of a rapid doubling of interest rates over six months, together with accelerated price appreciation, began to drive buyers in many markets to pause and reconsider. We began to see these effects after quarter end.”
“The Fed’s stated determination to curtail inflation through interest rate increases and quantitative tightening have begun to have the desired effect of slowing sales in some markets and stalling price increases across the country. While we believe that there remains a significant shortage of dwellings, and especially workforce housing, in the United States, the relationship between price and interest rates is going through a rebalance.”
“Accordingly, we are laser focused on traffic, affordability, the quality of our backlog, along with cancellation rates and completed, unsold inventory levels which, to date, are both at low levels. Additionally, we are focused on balance sheet strength as we ended the quarter with $1.3 billion in cash, no borrowings on our $2.6 billion revolver and homebuilding debt to capital of 17.7%. Our balance sheet has never been in a stronger position than it is today.”
Rick Beckwitt, Co-Chief Executive Officer and Co-President of Lennar, said, "During the second quarter, we continued to make progress on our land light strategy. This was evidenced by our controlled homesite percentage increasing to 62% from 50% year over year. This progress contributed to a return on equity of 21.4%, a 260 basis point improvement over last year’s second quarter."
Jon Jaffe, Co-Chief Executive Officer and Co-President of Lennar, said, "During the quarter, our homebuilding machine continued to be intensely focused on production. Our cycle time during the quarter increased only slightly sequentially so it appears that the well documented supply chain issues have started to subside. Our quarterly starts and sales pace remained strong at 6.2 homes and 5.0 homes per community, respectively, in the second quarter."
Mr. Miller concluded, "We recognize that current attempts at guidance are tantamount to ‘guessing’ and not ‘guiding.’ Therefore, for our third quarter, we will give broad boundaries for deliveries between 17,000 to 18,500 homes and boundaries for gross margins between 28.5% – 29.5%. For the full year, we will leave our delivery expectations at approximately 68,000 homes and, at this time, will not provide updated guidance for other items.


3-3-3
Recognizing that the Fed’s actions are still quite fluid and responsive to inflation data, the housing market will rebalance supply and demand, and interest rates and purchase price as market conditions evolve. Nevertheless, at Lennar, we are operating from a position of strength, enabling us to continue to execute on our core strategies.”

RESULTS OF OPERATIONS
THREE MONTHS ENDED MAY 31, 2022 COMPARED TO
THREE MONTHS ENDED MAY 31, 2021
Homebuilding
Revenues from home sales increased 33% in the second quarter of 2022 to $8.0 billion from $6.0 billion in the second quarter of 2021. Revenues were higher primarily due to a 14% increase in the number of home deliveries to 16,549 homes from 14,493 homes and a 17% increase in the average sales price to $483,000 from $414,000.
Gross margin on home sales were $2.4 billion, or 29.5%, in the second quarter of 2022, compared to $1.6 billion, or 26.1%, in the second quarter of 2021. During the second quarter of 2022, an increase in revenues per square foot was offset by an increase in costs per square foot primarily due to higher material and labor costs. Overall, gross margins improved year over year as land costs remained relatively flat while interest expense decreased as a result of the Company's focus on reducing debt.
Selling, general and administrative expenses were $486.6 million in the second quarter of 2022, compared to $455.2 million in the second quarter of 2021. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 6.1% in the second quarter of 2022, from 7.6% in the second quarter of 2021. This was the lowest percentage for a second quarter in the Company's history primarily due to a decrease in broker commissions and the benefits of the Company's technology efforts.
Financial Services
Operating earnings for the Financial Services segment were $103.9 million in the second quarter of 2022, compared to $121.3 million in the second quarter of 2021. The decrease in operating earnings was primarily due to lower mortgage net margins driven by a more competitive mortgage market, partially offset by an increase in rate lock volume and an increase in profit per order in the title business.
Other Ancillary Businesses
Operating earnings for the Multifamily segment were $0.7 million in the second quarter of 2022, compared to $22.4 million in the second quarter of 2021. Operating loss for the Lennar Other segment was $108.4 million in the second quarter of 2022, compared to $54.1 million in the second quarter of 2021. Lennar Other operating loss in the second quarter of 2022 was primarily due to mark-to-market losses on the Company's publicly traded technology investments. Lennar Other operating loss in the second quarter of 2021 was primarily due to mark-to-market losses on the Company's publicly traded technology investments, partially offset by the gain on the sale of the Company's residential solar business.



4-4-4
RESULTS OF OPERATIONS
SIX MONTHS ENDED MAY 31, 2022 COMPARED TO
SIX MONTHS ENDED MAY 31, 2021
Homebuilding
Revenues from home sales increased 26% in the six months ended May 31, 2022 to $13.7 billion from $10.9 billion in the six months ended May 31, 2021. Revenues were higher primarily due to a 9% increase in the number of home deliveries to 29,087 from 26,807 and a 16% increase in the average sales price to $472,000 from $406,000.
Gross margin on home sales were $3.9 billion, or 28.4%, in the six months ended May 31, 2022, compared to $2.8 billion, or 25.6%, in the six months ended May 31, 2021. During the six months ended May 31, 2022, an increase in revenues per square foot was offset by an increase in costs per square foot primarily due to higher material and labor costs. Overall, gross margins improved year over year as land costs remained relatively flat while interest expense decreased as a result of the Company's focus on reducing debt.
Selling, general and administrative expenses were $915.0 million in the six months ended May 31, 2022, compared to $865.4 million in the six months ended May 31, 2021. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 6.7% in the six months ended May 31, 2022, from 8.0% in the six months ended May 31, 2021. The improvement was primarily due to a decrease in broker commissions and the benefits of the Company's technology efforts.
Financial Services
Operating earnings for the Financial Services segment were $194.7 million in the six months ended May 31, 2022, compared to $267.5 million in the six months ended May 31, 2021. The decrease in operating earnings was primarily due to lower mortgage net margins driven by a more competitive mortgage market, partially offset by an increase in rate lock volume.
Other Ancillary Businesses
Operating earnings for the Multifamily segment were $6.1 million in the six months ended May 31, 2022, compared to $21.5 million in the six months ended May 31, 2021. Operating loss for the Lennar Other segment was $511.6 million in the six months ended May 31, 2022, compared to operating earnings of $417.2 million in the six months ended May 31, 2021. Lennar Other operating loss for the six months ended May 31, 2022 was primarily due to mark-to-market losses on the Company's publicly traded technology investments. Lennar Other operating earnings for the six months ended May 31, 2021 was primarily due to mark-to-market unrealized gains on the Company's publicly traded technology investments and the gain on the sale of the Company's residential solar business.
Tax Rate
For the six months ended May 31, 2022 and 2021, the Company had a tax provision of $599.7 million and $570.2 million, respectively, which resulted in an overall effective income tax rate of 24.7% and 23.7%,



5-5-5
respectively. The overall effective income tax rate was higher in 2022 primarily due to the expiration of the new energy efficient home tax credit.
Share Repurchases
During the second quarter of 2022, the Company repurchased 4.1 million shares of its common stock for $320.6 million at an average per share price of $78.20. For the six months ended May 31, 2022, the Company repurchased a total of 9.4 million shares of its common stock for $846.9 million at an average share price of $90.40.
Credit Facility
In May 2022, the Company amended the credit agreement governing its unsecured revolving credit facility (the "Credit Facility") to increase the commitments from $2.5 billion to $2.575 billion and extend the maturity to May 2027, except with regard to $350 million which matures in April 2024. The Credit Facility has a $425 million accordion feature, subject to additional commitments, thus the maximum borrowings are $3.0 billion.
Liquidity
At May 31, 2022, the Company had $1.3 billion of Homebuilding cash and cash equivalents and no borrowings under its $2.575 billion revolving credit facility, thereby providing $3.9 billion of available capacity.
Guidance
The following are the Company's expected results of its homebuilding and financial services activities for the third quarter of 2022:
New Orders16,000 - 18,000
Deliveries17,000 - 18,500
Average Sales PriceSlightly higher than Q2 2022
Gross Margin % on Home Sales28.5% - 29.5%
S,G&A as a % of Home Sales6.0% - 6.5%
Financial Services Operating Earnings$70 million - $75 million


6-6-6
About Lennar
Lennar Corporation, founded in 1954, is one of the nation’s leading builders of quality homes for all generations. Lennar builds affordable, move-up and active adult homes primarily under the Lennar brand name. Lennar’s Financial Services segment provides mortgage financing, title and closing services primarily for buyers of Lennar’s homes and, through LMF Commercial, originates mortgage loans secured primarily by commercial real estate properties throughout the United States. Lennar's Multifamily segment is a nationwide developer of high-quality multifamily rental properties. LENX drives Lennar's technology, innovation and strategic investments. For more information about Lennar, please visit www.lennar.com.

Note Regarding Forward-Looking Statements: Some of the statements in this press release are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995, including statements relating to the homebuilding market and other markets in which we participate. You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those anticipated by the forward-looking statements. Important factors that could cause such differences include the potential negative impact to our business of the ongoing coronavirus (COVID-19) pandemic; slowdowns in real estate markets in regions where we have significant Homebuilding or Multifamily development activities; supply shortages and increased costs related to construction materials, including lumber, and labor; cost increases related to real estate taxes and insurance; increased cost of mortgage financing for homebuyers, increased interest rates or increased competition in the mortgage industry; reductions in the market value of the Company's investments in public companies; decreased demand for our homes or Multifamily rental apartments; natural disasters or catastrophic events for which our insurance may not provide adequate coverage; our inability to successfully execute our strategies and our planned spin-off of certain businesses; a decline in the value of the land and home inventories we maintain and resulting possible future writedowns of the carrying value of our real estate assets; possible unfavorable losses in legal proceedings; conditions in the capital, credit and financial markets; changes in laws, regulations or the regulatory environment affecting our business, and the risks described in our filings with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended November 30, 2021. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

A conference call to discuss the Company’s second quarter earnings will be held at 11:00 a.m. Eastern Time on Tuesday, June 21, 2022. The call will be broadcast live on the Internet and can be accessed through the Company’s website at investors.lennar.com. If you are unable to participate in the conference call, the call will be archived at investors.lennar.com for 90 days. A replay of the conference call will also be available later that day by calling 203-369-0110 and entering 5723593 as the confirmation number.
###



7-7-7
LENNAR CORPORATION AND SUBSIDIARIES
Selected Revenues and Operating Information
(In thousands, except per share amounts)
(unaudited)
Three Months EndedSix Months Ended
May 31,May 31,
2022202120222021
Revenues:
Homebuilding$7,977,982 6,028,041 13,730,187 10,971,097 
Financial Services200,166 218,747 376,867 462,816 
Multifamily176,021 177,473 443,380 308,916 
Lennar Other4,527 5,984 11,778 12,884 
Total revenues$8,358,696 6,430,245 14,562,212 11,755,713 
Homebuilding operating earnings$1,880,411 1,112,475 2,990,261 1,945,655 
Financial Services operating earnings103,935 121,320 194,726 267,527 
Multifamily operating earnings668 22,397 6,095 21,523 
Lennar Other operating earnings (loss)(108,424)(54,097)(511,558)417,249 
Corporate general and administrative expenses(105,207)(90,717)(218,868)(201,248)
Charitable foundation contribution(16,549)(14,493)(29,087)(26,807)
Earnings before income taxes1,754,834 1,096,885 2,431,569 2,423,899 
Provision for income taxes(432,276)(260,113)(599,696)(570,218)
Net earnings (including net earnings attributable to noncontrolling interests)1,322,558 836,772 1,831,873 1,853,681 
Less: Net earnings attributable to noncontrolling interests1,802 5,409 7,536 20,949 
Net earnings attributable to Lennar$1,320,756 831,363 1,824,337 1,832,732 
Average shares outstanding:
Basic289,895 308,893 291,913 308,957 
Diluted289,895 308,893 291,913 308,957 
Earnings per share:
Basic$4.50 2.66 6.17 5.86 
Diluted$4.49 2.65 6.16 5.85 
Supplemental information:
Interest incurred (1)$61,798 71,453 121,732 142,517 
EBIT (2):
Net earnings attributable to Lennar$1,320,756 831,363 1,824,337 1,832,732 
Provision for income taxes432,276 260,113 599,696 570,218 
Interest expense included in:
Costs of homes sold77,608 88,761 137,766 163,708 
Costs of land sold87 633 204 1,192 
Homebuilding other expense, net5,338 5,269 10,574 10,200 
Total interest expense83,033 94,663 148,544 175,100 
EBIT$1,836,065 1,186,139 2,572,577 2,578,050 
(1)Amount represents interest incurred related to homebuilding debt.
(2)EBIT is a non-GAAP financial measure defined as earnings before interest and taxes. This financial measure has been presented because the Company finds it important and useful in evaluating its performance and believes that it helps readers of the Company's financial statements compare its operations with those of its competitors. Although management finds EBIT to be an important measure in conducting and evaluating the Company's operations, this measure has limitations as an analytical tool as it is not reflective of the actual profitability generated by the Company during the period. Management compensates for the limitations of using EBIT by using this non-GAAP measure only to supplement the Company's GAAP results. Due to the limitations discussed, EBIT should not be viewed in isolation, as it is not a substitute for GAAP measures.


8-8-8
LENNAR CORPORATION AND SUBSIDIARIES
Segment Information
(In thousands)
(unaudited)
Three Months EndedSix Months Ended
May 31,May 31,
2022202120222021
Homebuilding revenues:
Sales of homes$7,963,683 5,980,731 13,685,440 10,871,645 
Sales of land7,524 38,785 31,491 86,428 
Other homebuilding6,775 8,525 13,256 13,024 
Total homebuilding revenues7,977,982 6,028,041 13,730,187 10,971,097 
Homebuilding costs and expenses:
Costs of homes sold5,610,783 4,421,373 9,795,647 8,088,235 
Costs of land sold7,815 32,979 36,371 74,167 
Selling, general and administrative486,555 455,164 915,033 865,400 
Total homebuilding costs and expenses6,105,153 4,909,516 10,747,051 9,027,802 
Homebuilding net margins1,872,829 1,118,525 2,983,136 1,943,295 
Homebuilding equity in earnings (loss) from unconsolidated entities4,862 (1,688)4,576 (6,253)
Homebuilding other income (expense), net2,720 (4,362)2,549 8,613 
Homebuilding operating earnings$1,880,411 1,112,475 2,990,261 1,945,655 
Financial Services revenues$200,166 218,747 376,867 462,816 
Financial Services costs and expenses96,231 97,427 182,141 195,289 
Financial Services operating earnings$103,935 121,320 194,726 267,527 
Multifamily revenues$176,021 177,473 443,380 308,916 
Multifamily costs and expenses175,152 168,930 438,889 299,979 
Multifamily equity in earnings (loss) from unconsolidated entities and other gain(201)13,854 1,604 12,586 
Multifamily operating earnings$668 22,397 6,095 21,523 
Lennar Other revenues$4,527 5,984 11,778 12,884 
Lennar Other costs and expenses8,236 5,732 13,643 9,984 
Lennar Other equity in earnings (loss) from unconsolidated entities, other income (expense), net, and other gain (loss) (1)(26,750)218,276 (36,558)217,229 
Lennar Other unrealized gain (loss) from technology investments (2)(77,965)(272,625)(473,135)197,120 
Lennar Other operating earnings (loss)$(108,424)(54,097)(511,558)417,249 
(1)During both the three and six months ended May 31, 2021, the Company realized a gain of $151.5 million on the sale of its residential solar business.
(2)The following is a detail of Lennar Other unrealized gain (loss) from technology investments:
Three Months EndedSix Months Ended
May 31,May 31,
2022202120222021
Blend Labs (BLND) mark-to-market$(13,550)— (20,992)— 
Hippo (HIPO) mark-to-market(37,946)— (162,403)— 
Opendoor (OPEN) mark-to-market(20,999)(234,290)(164,360)235,455 
SmartRent (SMRT) mark-to-market(3,950)— (48,313)— 
Sonder (SOND) mark-to-market(1,626)— (2,132)— 
Sunnova (NOVA) mark-to-market106 (38,335)(74,935)(38,335)
$(77,965)(272,625)(473,135)197,120 


9-9-9
LENNAR CORPORATION AND SUBSIDIARIES
Summary of Deliveries, New Orders and Backlog
(Dollars in thousands, except average sales price)
(unaudited)
Lennar's reportable homebuilding segments and all other homebuilding operations not required to be reported separately have divisions located in:
East: Alabama, Florida, New Jersey, Pennsylvania and South Carolina
Central: Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, Tennessee and Virginia
Texas: Texas
West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington
Other: Urban divisions
For the Three Months Ended May 31,
202220212022202120222021
Deliveries:HomesDollar ValueAverage Sales Price
East5,198 4,480 $2,225,725 1,560,934 $428,000 348,000 
Central2,944 2,761 1,283,763 1,093,190 436,000 396,000 
Texas3,288 2,747 1,093,533 790,391 333,000 288,000 
West5,110 4,502 3,367,261 2,543,263 659,000 565,000 
Other9 3 9,159 2,857 1,018,000 952,000 
Total16,549 14,493 $7,979,441 5,990,635 $483,000 414,000 
Of the total homes delivered listed above, 44 homes with a dollar value of $15.8 million and an average sales price of $358,000 represent home deliveries from unconsolidated entities for the three months ended May 31, 2022, compared to 31 home deliveries with a dollar value of $9.9 million and an average sales price of $319,000 for the three months ended May 31, 2021.
At May 31,For the Three Months Ended May 31,
20222021202220212022202120222021
New Orders:Active CommunitiesHomesDollar ValueAverage Sales Price
East354 351 5,973 5,351 $2,753,770 1,987,929 $461,000 372,000 
Central315 297 3,576 3,416 1,663,354 1,399,730 465,000 410,000 
Texas205 232 3,375 3,250 1,189,263 1,000,013 352,000 308,000 
West348 342 4,858 5,135 3,482,679 3,172,569 717,000 618,000 
Other3 3 10 5 9,203 5,146 920,000 1,029,000 
Total1,225 1,225 17,792 17,157 $9,098,269 7,565,387 $511,000 441,000 
Of the total homes listed above, 60 homes with a dollar value of $30.8 million and an average sales price of $514,000 represent homes in seven active communities from unconsolidated entities for the three months ended May 31, 2022, compared to 32 homes with a dollar value of $9.9 million and an average sales price of $373,000 in four active communities for the three months ended May 31, 2021.

For the Six Months Ended May 31,
202220212022202120222021
Deliveries:HomesDollar ValueAverage Sales Price
East9,280 8,400 $3,898,097 2,912,235 $420,000 347,000 
Central5,465 5,180 2,389,692 2,019,628 437,000 390,000 
Texas5,825 5,096 1,899,163 1,426,802 326,000 280,000 
West8,502 8,124 5,509,465 4,520,071 648,000 556,000 
Other15 7 14,161 6,504 944,000 929,000 
Total29,087 26,807 $13,710,578 10,885,240 $472,000 406,000 
Of the total homes delivered listed above, 69 homes with a dollar value of $25.1 million and an average sales price of $364,000 represent home deliveries from unconsolidated entities for the six months ended May 31, 2022, compared to 43 home deliveries with a dollar value of $13.6 million and an average sales price of $316,000 for the six months ended May 31, 2021.







10-10-10
For the Six Months Ended May 31,
202220212022202120222021
New Orders:HomesDollar ValueAverage Sales Price
East10,883 10,165 $4,886,826 3,688,041 $449,000 363,000 
Central6,688 6,742 3,065,492 2,733,356 458,000 405,000 
Texas6,141 6,025 2,111,048 1,812,182 344,000 301,000 
West9,812 9,787 6,818,611 5,864,964 695,000 599,000 
Other15 8 13,831 8,121 922,000 1,015,000 
Total33,539 32,727 $16,895,808 14,106,664 $504,000 431,000 
Of the total new orders listed above, 104 homes with a dollar value of $48.2 million and an average sales price of $463,000 represent new orders from unconsolidated entities for the six months ended May 31, 2022, compared to 67 new orders with a dollar value of $23.5 million and an average sales price of $351,000 for the six months ended May 31, 2021.

May 31,
202220212022202120222021
Backlog:HomesDollar ValueAverage Sales Price
East9,882 7,778 $4,566,295 3,086,740 $462,000 397,000 
Central6,381 5,933 3,010,596 2,475,900 472,000 417,000 
Texas4,582 3,752 1,665,155 1,209,965 363,000 322,000 
West7,775 7,275 5,444,307 4,258,324 700,000 585,000 
Other4 3 3,611 3,465 903,000 1,155,000 
Total28,624 24,741 $14,689,964 11,034,394 $513,000 446,000 
Of the total homes in backlog listed above, 114 homes with a backlog dollar value of $51.7 million and an average sales price of $453,000 represent the backlog from unconsolidated entities at May 31, 2022, compared to 62 homes with a backlog dollar value of $21.4 million and an average sales price of $345,000 at May 31, 2021. During the six months ended May 31, 2022, the Company acquired 347 homes and 54 homes in backlog in the East and Central Homebuilding segment, respectively.


11-11-11
LENNAR CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
May 31,November 30,
20222021
(unaudited)(audited)
ASSETS
Homebuilding:
Cash and cash equivalents$1,314,741 2,735,213 
Restricted cash28,440 21,927 
Receivables, net508,638 490,278 
Inventories:
Finished homes and construction in progress12,811,985 10,446,139 
Land and land under development7,590,237 7,108,142 
Consolidated inventory not owned1,687,277 1,161,023 
Total inventories22,089,499 18,715,304 
Investments in unconsolidated entities1,083,813 972,084 
Goodwill3,442,359 3,442,359 
Other assets1,226,192 1,090,654 
29,693,682 27,467,819 
Financial Services2,359,675 2,964,367 
Multifamily1,277,607 1,311,747 
Lennar Other975,238 1,463,845 
Total assets$34,306,202 33,207,778 
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable$1,555,283 1,321,247 
Liabilities related to consolidated inventory not owned1,414,663 976,602 
Senior notes and other debts payable, net4,645,791 4,652,338 
Other liabilities2,997,475 2,920,055 
10,613,212 9,870,242 
Financial Services1,470,688 1,906,343 
Multifamily323,799 288,930 
Lennar Other108,729 145,981 
Total liabilities12,516,428 12,211,496 
Stockholders’ equity:
Class A common stock of $0.10 par value25,582 30,050 
Class B common stock of $0.10 par value3,660 3,944 
Additional paid-in capital5,355,182 8,807,891 
Retained earnings16,288,698 14,685,329 
Treasury stock(76,615)(2,709,448)
Accumulated other comprehensive income (loss)1,748 (1,341)
Total stockholders’ equity21,598,255 20,816,425 
Noncontrolling interests191,519 179,857 
Total equity21,789,774 20,996,282 
Total liabilities and equity$34,306,202 33,207,778 



12-12-12

LENNAR CORPORATION AND SUBSIDIARIES
Supplemental Data
(Dollars in thousands)
(unaudited)
May 31,November 30,May 31,
202220212021
Homebuilding debt$4,645,791 4,652,338 5,894,342 
Stockholders' equity21,598,255 20,816,425 19,576,108 
Total capital$26,244,046 25,468,763 25,470,450 
Homebuilding debt to total capital17.7 %18.3 %23.1 %
Homebuilding debt$4,645,791 4,652,338 5,894,342 
Less: Homebuilding cash and cash equivalents1,314,741 2,735,213 2,581,583 
Net homebuilding debt$3,331,050 1,917,125 3,312,759 
Net homebuilding debt to total capital (1)13.4 %8.4 %14.5 %

(1)Net homebuilding debt to total capital is a non-GAAP financial measure defined as net homebuilding debt (homebuilding debt less homebuilding cash and cash equivalents) divided by total capital (net homebuilding debt plus stockholders' equity). The Company believes the ratio of net homebuilding debt to total capital is a relevant and a useful financial measure to investors in understanding the leverage employed in homebuilding operations. However, because net homebuilding debt to total capital is not calculated in accordance with GAAP, this financial measure should not be considered in isolation or as an alternative to financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement the Company's GAAP results.


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