Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - LENNAR CORP /NEW/ | ex991-2018228x8kq1.htm |
| 8-K - 8-K - LENNAR CORP /NEW/ | len-2018228x8kq1.htm |
Exhibit 99.2
Supplemental Schedules
for Q1-18
Earnings Release
April 4, 2018
Schedule 1 Q1 2018 Homebuilding Metrics, as Reported and Pro Forma Exhibit 99.2
Lennar Standalone (12/1/17-2/28/18) CalAtlantic (2/13/18-2/28/18) As Reported (12/1/17-2/28/18)
Q1-18 Q1-17 Var % Q1-18 Q1-17 Var % Q1-18 Q1-17 Var %
New Orders 7,387 6,483 14% 1,069 8,456 6,483 30%
Deliveries 5,946 5,453 9% 819 6,765 5,453 24%
Backlog 10,376 9,017 15% 7,190 17,566 9,017 95%
Lennar Standalone (12/1/17-2/28/18) CalAtlantic Standalone (12/1/17-2/28/18)
(1)
Pro Forma Combined (12/1/17-2/28/18)
(1)
Q1-18 Q1-17 Var % Q1-18 Q1-17 Var % Q1-18 Q1-17 Var %
New Orders 7,387 6,483 14% 3,523 (2) 3,469 2% (2) 10,910 9,952 10%
Deliveries 5,946 5,453 9% 4,048 3,649 11% 9,994 9,102 10%
Backlog 10,376 9,017 15% 7,190 6,811 6% 17,566 15,828 11%
(1) CAA's Q1-17 adjusted to match LEN months of Dec. - Feb.
(2) CAA's Q1-18 new orders impacted by a reduction of 262 due to net accounting reclassifications of backlog acquisitions and contingent sales; excl. adjustments, orders would be +9% YoY
LENNAR CORPORATION
Schedule 2 Q1 2018 Earnings Components Exhibit 99.2
(In millions, excluding ASP & EPS) Q1-18 Guidance from LEN CalAtlantic Combined
Q1-17 Q1-18 Q1-18
Homebuilding Information
Deliveries 5,453 5,946 819 6,765
Backlog conversion 71.5% 66.5% Q1 backlog conversion of 65-70%
Average selling price (000) $365 $385 $456 $393
Home sales revenue $1,984 $2,276 $373 $2,649
Gross margin, excl CAA backlog write-up 21.1% 21.5% 22.2% (1) 21.6%
SG&A % of home sales revenue 10.3% 10.0% 8.2% (2) 9.7%
Operating margin % of home sales revenue 10.8% 11.5% Qtrly OM consistent with FY17 14.0% (1)(2) 11.9%
Operating margin $ $215.2 $262.1 $52.4 $314.5
Land, EPU, Other ($3.8) $155.6 ~$80m driven by strategic transaction ($1.3) $154.2
Financial Services $20.7 $17.8 LFS yoy decline due to refi $1.8 $19.7
Multifamily $19.2 ($1.2) LMC breakeven ($1.2)
Rialto, net of noncontrolling interests $12.0 $10.4 Rialto ~$10m $10.4
Corporate G&A $60.7 $65.6 $2.2 $67.8
Corporate G&A % of total revenue 2.6% 2.5% % of total revenue similar yoy 2.3%
$198.0 $377.4 $50.7 $428.0
Tax rate before DTA charge 34.4% 23.8% 23.8%
Diluted share count, excl merger issuance 236.9 237.6
$0.55 $1.21 Combined
EPS impact
Deferred Tax Asset charge - $68.6 Tax reform-related charge of ~$70m $68.6 ($0.27)
$0.16 (3) $0.92
All acquisition and integration costs (LEN & CAA) $104.2 $104.2 ($0.31)
Purchase accounting (impact from CAA backlog write-up) $55.0 $55.0 ($0.16)
Gross margin % incl purchase accounting 7.5% 19.5%
Net earnings $136.2
Diluted share count, incl merger issuance 254.4
Reported EPS $0.53
(1) CAA's gross margin for the 2 week period is inflated due to a high level of closings in a short period of time with fixed field expenses
(2) CAA's SG&A margin for the 2 week period is lower than a normalized SG&A given an increased level of closings and fixed G&A costs
(3) LEN Q1-17 EPS includes after tax litigation reserve of $91.8 million, or -$0.39 impact to EPS
Lennar
EPS, before CAA acquisition and integration costs, purchase
accounting, DTA charge and litigation reserves
Pre-tax income, before CAA acquisition and integration
costs, purchase accounting, and litigation reserves
EPS, before CAA acquisition and integration costs and
purchase accounting
Feb 13-Feb 28
LENNAR CORPORATION
Schedule 3 Homebuilding Metrics: Historical Pro Forma and Projected Exhibit 99.2
Q1-18 Q1-17 Q2-18 Q2-17 Q3-18 Q3-17 Q4-18 Q4-17 FY18 FY17
Pro forma Pro forma Projected Pro forma Projected Pro forma Projected Pro forma Pro forma Pro forma
New Orders(1) 10,910 9,952 10% 13,800 13,386 3% 12,500 11,128 12% 11,600 10,828 7% 48,810 45,294 8%
Actual Reported (2) 8,456 46,356
Deliveries 9,994 9,102 10% 11,500 11,337 1% 12,500 11,327 10% 15,000 12,062 24% 48,994 43,828 12%
Actual Reported (2) 6,765 45,765
Backlog 17,566 15,828 11% 19,866 17,873 11% 19,866 17,673 12% 16,466 16,438 0%
Conversion Ratio 60.8% 65.5% 62.9% 75.5%
Information includes CAA for all periods, adjusted to conform to LEN reporting periods
(1) CAA's Q1-18 new orders impacted by a reduction of 262 due to net accounting reclassifications of backlog acquisitions and contingent sales; excl. adjustments, orders would be +9% YoY
(2) Actual reported statistics only include Q1-18
This presentation includes projections regarding the financial performance of the Company. These projections are based on current expectations and estimates about the industry and markets in which the Company operates, and beliefs and assumptions made by Company
management. These projections reflect our current views and are subject to risks, uncertainties and assumptions. We wish to caution readers that certain important factors may have affected and could in the future affect our actual results and could cause actual results to differ
significantly from what is anticipated by our projections. The most important factors that could cause actual results to differ materially from those anticipated by our projections include, but are not limited to: increases in operating costs, including costs related to real estate
taxes, construction materials, labor and insurance; our inability to realize the anticipated synergy benefits from the CalAtlantic transaction; a downturn in the market for residential real estate; changes in general economic and financial conditions that reduce demand for our
products and services; negative effects of increasing mortgage interest rates; natural disasters and other unforeseen events for which our insurance does not provide adequate coverage; and new laws or regulatory changes that adversely affect the profitability of our businesses.
Please see our Form 10-K for the fiscal year ended November 30, 2017 and other filings with the SEC for a further discussion of these and other risks and uncertainties which could affect our future results. We undertake no obligation, other than those imposed by securities
laws, to publicly revise any projections to reflect events or circumstances after the date of those statements or to reflect the occurrence of anticipated or unanticipated events.
Var % Var % Var % Var % Var %
LENNAR CORPORATION
Schedule 4 Pro forma Homebuilding Statistics Exhibit 99.2
Q1-18 Q1-17 Q2-17 Q3-17 Q4-17 FY17
New Orders(1) 10,910 9,952 13,386 11,128 10,828 45,294
East 5,066 4,280 6,010 5,238 5,121 20,649
Central 2,622 2,511 3,251 2,494 2,656 10,912
West 2,266 2,244 2,944 2,476 2,186 9,850
Other 956 917 1,181 920 865 3,883
Deliveries 9,994 9,102 11,337 11,327 12,062 43,828
East 4,470 3,944 4,983 5,304 5,577 19,808
Central 2,437 2,461 3,092 2,758 2,982 11,293
West 2,212 1,863 2,240 2,256 2,525 8,884
Other 875 834 1,022 1,009 978 3,843
Delivery ASP (000's) $421 $397 $398 $397 $405 $399
East $354 $340 $351 $352 $348 $348
Central $382 $379 $370 $378 $365 $373
West $612 $554 $547 $532 $574 $552
Other $391 $375 $386 $384 $414 $390
Ending Backlog(2) 17,566 15,828 17,873 17,673 16,438
East 7,925 6,830 7,853 7,786 7,329
Central 4,431 4,675 4,834 4,570 4,244
West 3,536 2,897 3,601 3,821 3,482
Other 1,674 1,426 1,585 1,496 1,383
Notes:
Information includes CAA for all periods, adjusted to conform to LEN reporting periods
(1) CAA's Q1-18 new orders impacted by a reduction of 262 due to net accounting reclassifications of backlog acquisitions and contingent sales; excl. adjustments, orders would be +9% YoY
(2) Q1-18 showing actual results
Reported regions:
East: Florida, Georgia, Maryland, New Jersey, North Carolina, South Carolina and Virginia
Central: Arizona, Colorado and Texas
West: California and Nevada
Other: Illinois, Indiana, Minnesota, Oregon, Tennessee, Utah and Washington
LENNAR CORPORATION
Schedule 5 Q1 2018 Earnings Components Reconciliation
(Non-GAAP Financial Measure)
Exhibit 99.2
Lennar Corporation
Q1 2018
Non-GAAP Reconciliation
In thousands
$136,215
Add: Write-up of CalAtlantic inventory in backlog 55,024
Add: Acquisition and integration costs 104,195
Add: Provision for income taxes 63,966
Add: Deferred tax asset write-off 68,645
$428,045
This presentation includes information extracted from consolidated financial information that is not required by generally accepted accounting principles in the United States of
America (GAAP) to be presented in the financial statements. Pre-tax income, before CAA acquisition and integration costs and purchase accounting, and litigation reserves is a
non-GAAP financial measure. Non-GAAP financial measures should be considered in addition to, but not as a substitute for or superior to, other measures of financial
performance or liquidity prepared in accordance with GAAP. Also, our non-GAAP financial measure may not be comparable to financial measures used by other companies. We
have provided a reconciliation of this non-GAAP financial measure to the most comparable GAAP measure. Our management believes this non-GAAP financial measure provides
useful information to investors because it shows what our earnings would have been but for some large items.
Pre-tax income, before CAA acquisition and integration costs, purchase accounting, and
litigation reserves (from Schedule 2)
GAAP Net earnings attributable to Lennar Corporation
LENNAR CORPORATION