Lennar Homes Reports 29% Drop in Revenues, Becomes Profitable in Q4

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(MIAMI, FL) -- Today Lennar Corporation (NYSE:LEN) reported results for its fourth quarter and fiscal year ended November 30, 2009.

Fourth quarter net earnings in 2009 were $35.6 million, or $0.19 per diluted share, compared to a net loss of $811.0 million, or $5.12 per diluted share, in 2008. The net loss for the year ended November 30, 2009 was $417.1 million, or $2.45 per diluted share, compared to a net loss of $1,109.1 million, or $7.00 per diluted share, in 2008.

Stuart Miller, President and Chief Executive Officer of Lennar Corporation, said, "During the fourth quarter, the overall housing market continued to move towards stabilization as more confident homebuyers took advantage of increased affordability and the $8,000 federal tax credit. While we continue to adapt our business in light of the current economic landscape and its challenges, we are optimistic that homebuyers have recognized that the residential housing market is improving and will continue to take advantage of the extended housing stimulus."

Mr. Miller continued, "We continued to focus on the basics of our homebuilding operations, as we strategically position our company to return to profitability in 2010. We experienced the first year-over-year increase in new orders since our first quarter of 2006. Additionally, our fourth quarter results reflected a sequential improvement of 190 basis points in pre-impairment operating margin. This improvement was primarily driven by reduced sales incentives, lower construction costs and the successful rollout of our new value-engineered products."

Mr. Miller concluded, "We ended the year with $1.3 billion in cash and a responsible homebuilding debt-to-total capital ratio, net of homebuilding cash, of 36.9%. Additionally, as a result of tax legislation that was enacted in our fourth quarter, we will receive a tax refund of approximately $320 million in early 2010. Our improved balance sheet enables us to continue to capitalize on distressed land-buying opportunities, which will improve our operating results in 2010 and beyond."

Lennar was founded in 1954 and is one of the nation's largest homebuilders.

Lennar's 2009 Fiscal Year Highlights Include:

• Revenues of $3.1 billion - down 32%

• Loss per share of $2.45 (includes a $1.73 per share charge related to valuation adjustments and other write-offs and a $0.35 per share charge related to valuation adjustments to land the Company intends to sell or has sold to third parties, offset by $0.48 earnings per share related to the reduction of the deferred tax asset valuation allowance primarily due to a NOL carryback)

• Deliveries of 11,478 homes - down 27%

• New orders of 11,510 homes - down 14%

• Cancellation rate of 18% - compared to 26%

 

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