Lennar Racks Up Record First-Quarter Profit of $71.9M

That demand "continues to drive a consistent earnings picture," Lennar president/CEO Stuart Miller says in a prepared statement. "Historically low interest rates, combined with a high level of consumer confidence and relatively strong employment trends continue to promote a healthy homebuilding environment."

The company's fiscal first quarter ended Feb. 28. Net earnings in the same 2001 period were $51.3 million or 75 cents per diluted share.

Revenue rose 11% to $1.1 billion from $1 billion in the 2001 period. The increase came from a 13% increase in new home deliveries but was partially offset by a 1% decrease in the average sales price to $232,000 from $234,000. A lower average sales price in Texas brought down the total average price, Miller says.

But the company's gross margin percentage on sales improved 80 basis points to 23.1% compared to 22.3% in the comparable 2001 period. A total 4,791 homes were solid in Florida and Texas, up from 4,257 residences sold in the same period last year.

Revenue from land sales totaled $21.5 million compared to $16.8 million in first quarter 2001. Gross profit from land sales totaled $400,000 or a 1.8% margin compared to $300,000 or a 1.7% margin a year ago.

Operating earnings for the financial services division increased to $23.4 million from $7.3 million in first quarter 2001.

"The increase reflects the successful operational efficiencies which resulted from the combination of Lennar's and U.S. Home's mortgage operations and the consolidation of the company's title (insurance) operations under the North American Title banner," Miller says.

Helping, too, were a surge in refinance activity by homeowners, a higher volume of sales and a higher capture rate of Lennar homebuyers. The financial services division provides residential mortgage services, title insurance and closing services.

Lennar's common on the New York Stock Exchange closed Thursday at $51.12 per share, down $1.50 from $52.62 on March 20. Trading volume was 3.39 million. The company has 64.1 million shares outstanding and a market capitalization of $3.28 million. The stock's price/earnings ratio is 8.13. The 52-week high-low was $60.24 and $31.04 per share.