2007 Fourth Quarter - Revenues of $2.2 billion - down 49%
- Loss per share of $7.92 (includes a $7.50 per share charge related to
valuation adjustments and other write-offs)
- Pretax valuation adjustments and other write-offs:
- Morgan Stanley land transaction - $740.4 million
- Land - $229.7 million
- Option deposits and pre-acquisition costs - $217.6 million
- Homebuilding - $224.8 million
- Investments in unconsolidated entities - $277.3 million
- Goodwill - $173.7 million
- Deliveries of 7,044 homes - down 50%
- New orders of 4,761 homes - down 50%; cancellation rate of 33%
2007 Fiscal Year - Revenues of $10.2 billion - down 37%
- Loss per share of $12.31 (includes a $12.62 per share charge related to
valuation adjustments and other write-offs)
- Deliveries of 33,283 homes - down 33%
- New orders of 25,753 homes - down 39%; cancellation rate of 30%
- Backlog dollar value of $1.4 billion - down 65%
- Homesites owned and controlled at year-end of 148,671 - down 47%
- Homebuilding debt decreased $318.1 million; homebuilding debt to total
capital of 37.5% (net homebuilding debt to total capital of 30.2%)
- $642.5 million of cash at year-end
- Tax refund of $852 million received subsequent to year-end
- No outstanding balance under the Company's credit facility at year-end
- Revolving credit facility amended, which reduced the Company's borrowing
capacity from $3.1 billion to $1.5 billion and amended certain debt
covenants
MIAMI, Jan. 24 /PRNewswire-FirstCall/ -- 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, 2007.
Fourth quarter net loss in 2007 was $1.3 billion, or $7.92 per diluted
share, compared to a net loss of $195.6 million, or $1.24 per diluted
share, in 2006. The net loss for the year ended November 30, 2007 was $1.9
billion, or $12.31 per diluted share, compared to net earnings of $593.9
million, or $3.69 per diluted share ($3.76 per basic share).
Stuart Miller, President and Chief Executive Officer of Lennar
Corporation, said, "While we are hopeful that recent interest rate moves by
the Federal Reserve and recent plans proffered by the Federal government
will have a stabilizing impact on the housing market, market conditions
remained depressed and, in fact, continued a downward slide through the end
of our fourth quarter."
"Accordingly, our strategy has been to aggressively reconcile our asset
valuations to the reality of existing market conditions and to remain
primarily focused on cash generation by aggressively converting inventory
into cash. As is reflected in our year-end numbers, we have taken
meaningful steps along these lines."
Mr. Miller continued, "To that end, we have continued to price homes to
current market conditions, build-out our inventory, deliver our backlog and
maintain low inventory levels. We have significantly reduced our operations
in each market to reflect the sales pace of the market."
"Additionally, we have finalized a number of strategic land and joint
venture transactions and walked away from option deposits in order to
generate or protect cash to fortify our balance sheet. As a result, our
land inventory and homes under construction have declined throughout the
second half of 2007."
"As a by-product of our strategic fourth quarter moves, we have
generated losses that have resulted in the receipt of a cash tax refund of
$852 million subsequent to the close of the quarter."
Mr. Miller concluded, "As we look ahead to 2008, we are not expecting
market conditions to improve, and perhaps might continue to decline in the
near term. Nevertheless, the strength of our balance sheet, bolstered by
the cash generated through our fourth quarter strategic moves, will keep us
well positioned to weather these turbulent times. Additionally, our
management focus on right-sizing our business, revising our product
offering and reducing construction costs, together with our restated land
positions that reflect current market conditions, will provide the
springboard from which we will rebuild margins once the market does
stabilize."
RESULTS OF OPERATIONS
THREE MONTHS ENDED NOVEMBER 30, 2007 COMPARED TO
THREE MONTHS ENDED NOVEMBER 30, 2006
Homebuilding
Revenues from home sales decreased 51% in the fourth quarter of 2007 to
$2.0 billion from $4.0 billion in 2006. Revenues were lower primarily due
to a 49% decrease in the number of home deliveries and a 4% decrease in the
average sales price of homes delivered in 2007. New home deliveries,
excluding unconsolidated entities, decreased to 6,810 homes in the fourth
quarter of 2007 from 13,285 homes last year. In the fourth 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 $291,000 in the fourth quarter of 2007 from
$302,000 in 2006, primarily due to higher sales incentives offered to
homebuyers ($58,800 per home delivered in the fourth quarter of 2007,
compared to $47,300 per home delivered last year).
Gross margins on home sales excluding FAS 144 inventory valuation
adjustments were $240.4 million, or 12.1%, in the fourth quarter of 2007,
compared to $576.6 million, or 14.4%, in the same quarter of 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 $15.6
million, or 0.8%, in the fourth quarter of 2007, which included $224.8
million of FAS 144 inventory valuation adjustments, compared to gross
margins on home sales of $336.8 million, or 8.4%, in the fourth quarter of
2006, which included $239.8 million of FAS 144 inventory 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 $185.5
million, or 38%, in the fourth quarter of 2007, compared to the same period
last year, primarily due to reductions in associate headcount and variable
selling expenses. As a percentage of revenues from home sales, selling,
general and administrative expenses increased to 15.1% in the fourth
quarter of 2007, from 12.1% in 2006. The 300 basis point increase was
primarily due to lower revenues.
Loss on land sales totaled $1.2 billion in the fourth quarter of 2007,
which included $740.4 million of FAS 144 valuation adjustments on the
inventory acquired by the Morgan Stanley land investment venture discussed
below, $229.7 million of FAS 144 valuation adjustments and $217.6 million
of write-offs of deposits and pre-acquisition costs related to 12,500
homesites under option that the Company does not intend to purchase. In the
fourth quarter of 2006, loss on land sales totaled $119.9 million, which
included $33.3 million of FAS 144 valuation adjustments and $111.1 million
of write- offs of deposits and pre-acquisition costs related to 9,400
homesites that were under option.
In November 2007, the Company and Morgan Stanley Real Estate Fund II,
L.P., an affiliate of Morgan Stanley & Co., Inc., formed a strategic land
investment venture to acquire, develop, manage and sell residential real
estate. The Company acquired a 20% ownership interest and 50% voting rights
in the land investment venture. Concurrent with the formation of the land
investment venture, the Company sold a diversified portfolio of its land to
the venture for $525 million. The properties acquired by the new entity
consist of approximately 11,000 homesites in 32 communities located
throughout the country. The properties sold by the Company had a net book
value of approximately $1.3 billion. As part of the transaction, the
Company entered into option agreements and obtained rights of first offer
providing the Company the opportunity to purchase certain finished
homesites. The exercise price of the options is based on a fixed percentage
of the future home price. The Company has no obligation to exercise these
options and cannot acquire a majority of the entity's assets. The Company
is managing the land investment venture's operations and receives fees for
its services. The Company will also receive disproportionate distributions
if the investment venture exceeds certain financial targets.
Due to the Company's continuing involvement, the transaction did not
qualify as a sale under GAAP; thus, the inventory remained on the Company's
balance sheet as of November 30, 2007. In connection with the transaction,
the Company recorded a FAS 144 valuation adjustment of $740.4 million on
the inventory acquired by the investment venture.
Equity in loss from unconsolidated entities was $194.8 million in the
fourth quarter of 2007, which included $191.5 million of FAS 144 valuation
adjustments related to assets of the Company's investments in
unconsolidated entities, compared to equity in loss from unconsolidated
entities of $59.6 million in the fourth quarter of 2006, which included
$109.7 million of FAS 144 valuation adjustments related to assets of the
Company's investments in unconsolidated entities.
During the fourth quarter of 2007, the Company recorded goodwill
impairments of $173.7 million related to its homebuilding operations.
Management fees and other expense, net, totaled $83.0 million in the
fourth quarter of 2007, which included $85.8 million of valuation
adjustments, compared to management fees and other income, net, of $9.0
million in the fourth quarter of 2006, net of $14.5 million of valuation
adjustments.
Minority interest income, net was $1.3 million in the fourth quarter of
2007 compared to minority interest expense of $1.4 million, in the fourth
quarter of 2006.
Sales of land, equity in loss from unconsolidated entities, management
fees and other income (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 $18.7 million in
the fourth quarter of 2007, compared to operating earnings of $42.9 million
last year. The decline in profitability was due to overall weakness in the
housing 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 $1.7
million, or 5%, in the fourth quarter of 2007, compared to the same period
last year. As a percentage of total revenues, corporate general and
administrative expenses increased to 1.6% in the fourth quarter of 2007,
compared to 0.8% in the same period last year, primarily due to lower
revenues.
YEAR ENDED NOVEMBER 30, 2007 COMPARED TO
YEAR ENDED NOVEMBER 30, 2006
Homebuilding
Revenues from home sales decreased 36% in the year ended November 30,
2007 to $9.5 billion from $14.9 billion in 2006. Revenues were lower
primarily due to a 33% 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 31,582 homes in
the year ended November 30, 2007 from 47,032 homes last year. In the year
ended November 30, 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 $297,000 in the
year ended November 30, 2007 from $315,000 in 2006, primarily due to higher
sales incentives offered to homebuyers ($48,000 per home delivered in 2007,
compared to $32,000 per home delivered in 2006).
Gross margins on home sales excluding inventory valuation adjustments
were $1.3 billion, or 13.9%, in the year ended November 30, 2007, compared
to $3.0 billion, or 20.3%, 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 $570.7 million, or 6.0%, in the year ended
November 30, 2007, which included $747.8 million of FAS 144 inventory
valuation adjustments, compared to gross margins on home sales of $2.7
billion, or 18.4%, in the year ended November 30, 2006, which included
$280.5 million of FAS 144 inventory valuation adjustments.
Selling, general and administrative expenses were reduced by $396.6
million, or 22%, in the year ended November 30, 2007, compared to the same
period last year, primarily due to reductions in associate headcount and
variable selling expenses. As a percentage of revenues from home sales,
selling, general and administrative expenses increased to 14.5% in the year
ended November 30, 2007, from 11.9% in 2006. The 260 basis point increase
was primarily due to lower revenues.
Loss on land sales totaled $1.7 billion in the year ended November 30,
2007, which included $740.4 million of FAS 144 valuation adjustments on the
inventory acquired by the Morgan Stanley land investment venture previously
discussed, $426.9 million of FAS 144 valuation adjustments and $530.0
million of write-offs of deposits and pre-acquisition costs related to
36,900 homesites under option that the Company does not intend to purchase.
In the year ended November 30, 2006, loss on land sales totaled $30.0
million, which included $69.1 million of FAS 144 valuation adjustments and
$152.2 million of write-offs of deposits and pre-acquisition costs related
to 24,200 homesites that were under option.
Equity in loss from unconsolidated entities was $362.9 million in the
year ended November 30, 2007, which included $364.2 million of FAS 144
valuation adjustments related to the assets of the Company's investments in
unconsolidated entities, compared to equity in loss from unconsolidated
entities of $12.5 million in the year ended November 30, 2006, which
included $126.4 million of FAS 144 valuation adjustments related to the
assets of the Company's investments in unconsolidated entities last year.
During the year ended November 30, 2007, the Company recorded goodwill
impairments of $190.2 million related to its homebuilding operations.
Management fees and other expense, net, totaled $76.0 million in the
year ended November 30, 2007, which included $132.2 million of valuation
adjustments, compared to management fees and other income, net, of $66.6
million in the year ended November 30, 2006, net of $14.5 million of
valuation adjustments.
Minority interest expense, net was $1.9 million and $13.4 million,
respectively, in the years ended November 30, 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.
In February 2007, the Company's LandSource joint venture admitted MW
Housing Partners as a new strategic partner. As part of the transaction,
the joint venture obtained $1.6 billion of non-recourse financing, which
consisted of a $200 million five-year Revolving Credit Facility, a $1.1
billion six-year Term Loan B Facility and a $244 million seven-year Second
Lien Term Facility. The transaction resulted in a cash distribution to the
Company of $707.6 million, but reduced the Company's resulting ownership of
LandSource to 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 $6.1 million
in the year ended November 30, 2007, compared to $149.8 million last year.
The decrease was primarily due to a decline in profitability from both the
segment's mortgage and title operations and $28.4 million of partial write-
offs of land seller notes receivable. The decline in profitability was due
to the overall weakness in the housing 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 $20.1
million, or 10%, in the year ended November 30, 2007, compared to the same
period last year. As a percentage of total revenues, corporate general and
administrative expenses increased to 1.7% in the year ended November 30,
2007, compared to 1.2% in the same period last year, primarily due to lower
revenues.
Amendment to Senior Unsecured Revolving Credit Facility
The Company has completed an amendment to its senior unsecured
revolving credit facility that modified certain covenants, which included
minimum tangible net worth, borrowing base and maximum leverage ratio, as
well as added a new covenant to reduce the recourse indebtedness of joint
ventures in which the Company participates. Under this amendment, the
maximum amount the Company can borrow was reduced from $3.1 billion to $1.5
billion.
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, http://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 fourth quarter earnings will
be held at 11:00 a.m. Eastern Time on Thursday, January 24, 2008. The call
will be broadcast live on the Internet and can be accessed through the
Company's website at http://www.lennar.com. If you are unable to participate in
the conference call, the call will be archived at http://www.lennar.com for 90
days. A replay of the conference call will also be available later that day
by calling 203-369-1032 and entering 3950468 as the confirmation number.
LENNAR CORPORATION AND SUBSIDIARIES
Selected Revenues and Earnings (Loss) Information
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Years Ended
November 30, November 30,
2007 2006 2007 2006
Revenues:
Homebuilding $ 2,096,084 4,102,229 9,730,252 15,623,040
Financial services 80,821 163,836 456,529 643,622
Total revenues $ 2,176,905 4,266,065 10,186,781 16,266,662
Homebuilding operating
earnings (loss) $(1,914,611) (319,354) (2,913,999) 986,153
Financial services
operating earnings (loss) (18,714) 42,893 6,120 149,803
Corporate general and
administrative expenses 35,766 34,023 173,202 193,307
Earnings (loss) before
provision (benefit) for
income taxes (1,969,091) (310,484) (3,081,081) 942,649
Provision (benefit) for
income taxes (717,444) (114,879) (1,140,000) 348,780
Net earnings (loss) $(1,251,647) (195,605) (1,941,081) 593,869
Average shares outstanding:
Basic 158,072 157,130 157,718 158,040
Diluted 158,072 157,130 157,718 161,371
Earnings (loss) per share:
Basic $ (7.92) (1.24) (12.31) 3.76
Diluted $ (7.92) (1.24) (12.31) 3.69
Supplemental information:
Interest incurred (1) $ 41,613 60,204 199,073 232,144
EBIT before valuation
adjustments and write-
offs of option deposits
and pre-acquisition
costs, goodwill and
financial services
notes receivable (2):
Earnings (loss) before
provision (benefit)
for income taxes $(1,969,091) (310,484) (3,081,081) 942,649
Interest expense 48,041 63,106 203,700 241,066
Valuation adjustments
and write-offs of
option deposits and
pre-acquisition
costs, goodwill and
financial services
notes receivable 1,864,009 511,081 3,160,110 645,406
EBIT before valuation
adjustments and
write-offs of option
deposits and pre-
acquisition costs,
goodwill and financial
services
notes receivable $ (57,041) 263,703 282,729 1,829,121
(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 Years Ended
November 30, November 30,
2007 2006 2007 2006
Revenues:
Sales of homes $ 1,983,618 4,008,366 9,462,940 14,854,874
Sales of land 112,466 93,863 267,312 768,166
Total revenues 2,096,084 4,102,229 9,730,252 15,623,040
Costs and expenses:
Cost of homes sold 1,968,044 3,671,554 8,892,268 12,114,433
Cost of land sold 1,293,643 213,740 1,928,451 798,165
Selling, general and
administrative 298,783 484,291 1,368,358 1,764,967
Total costs and
expenses 3,560,470 4,369,585 12,189,077 14,677,565
Gain on recapitalization
of unconsolidated entity - - 175,879 -
Goodwill impairments 173,701 - 190,198 -
Equity in loss from
unconsolidated entities 194,762 59,615 362,899 12,536
Management fees and
other income (expense), net (83,025) 8,977 (76,029) 66,629
Minority interest income
(expense), net 1,263 (1,360) (1,927) (13,415)
Operating earnings
(loss) $(1,914,611) (319,354) (2,913,999) 986,153
LENNAR CORPORATION AND SUBSIDIARIES
Valuation Adjustments and Write-offs
(In thousands)
(unaudited)
Three Months Ended Years Ended
November 30, November 30,
2007 2006 2007 2006
FAS 144 valuation adjustments to
finished homes, CIP and
land on which the Company
intends to build homes:
East $67,114 138,933 279,064 155,749
Central 31,078 25,560 94,190 27,138
West 115,756 59,700 331,827 80,207
Other 10,863 15,573 42,762 17,375
Total FAS 144 valuation
adjustments to finished homes,
CIP and land on which the Company
intends to build homes 224,811 239,766 747,843 280,469
FAS 144 valuation adjustments to
land the Company intends to sell
to third parties:
East 235,228 16,565 307,534 24,702
Central 61,819 3,999 80,863 17,318
West 584,587 - 648,628 -
Other 88,442 12,746 130,269 27,057
Total FAS 144 valuation
adjustments to land the
Company intends to sell to
third parties 970,076 33,310 1,167,294 69,077
Write-offs of option deposits and
pre-acquisition costs:
East 45,314 73,361 119,645 80,483
Central 7,704 129 57,117 2,951
West 146,336 27,214 310,795 44,000
Other 18,242 10,395 42,424 24,806
Total write-offs of option
deposits and pre-acquisition
costs 217,596 111,099 529,981 152,240
Company's share of FAS 144
valuation adjustments related
to assets of unconsolidated
entities:
East 48,146 24,558 55,157 25,484
Central 18,997 - 29,585 -
West 118,566 78,381 273,679 92,776
Other 5,741 6,784 5,741 8,177
Total Company's share of FAS 144
valuation adjustments
related to assets of
unconsolidated entities 191,450 109,723 364,162 126,437
APB 18 valuation adjustments to
investments in unconsolidated
entities:
East 15,481 - 42,200 -
Central 8,800 - 14,552 -
West 58,487 12,165 68,883 12,165
Other 3,066 2,305 6,571 2,305
Total APB 18 valuation
adjustments to investments in
unconsolidated entities 85,834 14,470 132,206 14,470
Goodwill impairments:
East 46,274 - 46,274 -
Central 28,465 - 31,293 -
West 43,955 - 43,955 -
Other 55,007 - 68,676 -
Total goodwill impairments 173,701 - 190,198 -
Financial services write-offs of
notes receivable 541 2,713 28,426 2,713
Total $1,864,009 511,081 3,160,110 645,406
LENNAR CORPORATION AND SUBSIDIARIES
Summary of Deliveries, New Orders and Backlog
(Dollars in thousands)
(unaudited)
At or for the
Three Months Ended Years Ended
November 30, November 30,
2007 2006 2007 2006
Deliveries:
East 2,087 4,776 9,840 14,859
Central 2,263 4,630 11,400 17,069
West 1,855 3,410 8,739 13,333
Other 839 1,190 3,304 4,307
Total 7,044 14,006 33,283 49,568
Of the total deliveries listed above, 234 and 1,701, respectively,
represent deliveries from unconsolidated entities for the three months and
year ended November 30, 2007, compared to 721 and 2,536 deliveries in the
same periods last year.
New Orders:
East 1,197 2,675 7,492 11,290
Central 1,603 3,701 8,676 16,120
West 1,418 2,358 6,765 11,119
Other 543 872 2,820 3,683
Total 4,761 9,606 25,753 42,212
Of the total new orders listed above, 123 and 1,091, respectively,
represent new orders from unconsolidated entities for the three months and
year ended November 30, 2007, compared to 488 and 1,921 new orders in the
same periods last year.
Backlog - Homes:
East 1,797 4,139
Central 874 3,598
West 942 2,991
Other 396 880
Total 4,009 11,608
Of the total homes in backlog listed above, 364 represents homes in
backlog from unconsolidated entities at November 30, 2007, compared to
1,089 homes in backlog at November 30, 2006.
Backlog - Dollar Value:
East $587,100 1,460,213
Central 195,684 850,472
West 408,280 1,328,617
Other 193,073 341,126
Total $1,384,137 3,980,428
Of the total dollar value of homes in backlog listed above, $182,664
represents the backlog dollar value from unconsolidated entities at
November 30, 2007, compared to $478,707 of backlog dollar value at
November 30, 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)
November 30,
2007 2006
Homebuilding debt $2,295,436 2,613,503
Stockholders' equity 3,822,119 5,701,372
Total capital $6,117,555 8,314,875
Homebuilding debt to total capital 37.5% 31.4%
Homebuilding debt $2,295,436 2,613,503
Less: Homebuilding cash 642,467 661,662
Net homebuilding debt $1,652,969 1,951,841
Net homebuilding debt to total
capital (1) 30.2% 25.5%
(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).
SOURCE Lennar Corporation
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