MIAMI, Dec. 18 /PRNewswire-FirstCall/ --
2008 Fourth Quarter
-- Revenues of $1.3 billion - down 41%
-- Loss per share of $5.12 (includes a $0.94 per share charge related to
valuation adjustments and other write-offs; and a $4.61 per share
charge related to a non-cash deferred tax asset valuation allowance)
-- Homebuilding cash of $1.1 billion at year-end
-- Additional $230 million of cash received subsequent to year-end related
to a tax loss carryback
-- Gross margin on home sales:
* 17.0% (excluding SFAS 144 valuation adjustments of $63.4 million) -
up 490 basis points
* 11.6% (including SFAS 144 valuation adjustments) - up 1,080 basis
points
-- S,G&A expenses as a % of home sales of 14.1% - 100 basis point
improvement
-- Operating margin on home sales:
* 2.9% (excluding SFAS 144 valuation adjustments) - up 580 basis
points
* -2.5% (including SFAS 144 valuation adjustments) - up 1,180 basis
points
-- Deliveries of 4,518 homes - down 36%
-- New orders of 2,563 homes - down 46%; cancellation rate of 32%
-- Backlog of 1,599 homes - down 60%
-- No outstanding borrowings under the Company's credit facility at year-
end
-- Homebuilding debt to total capital, net of homebuilding cash, of 35.7%
-- Maximum recourse indebtedness related to the Company's unconsolidated
entities of $520 million - reduced by $1.2 billion, or 71%, since its
peak at November 30, 2006
2008 Fiscal Year
-- Revenues of $4.6 billion - down 55%
-- Loss per share of $7.00 (includes a $2.41 per share charge related to
valuation adjustments and other write-offs; and a $4.61 per share
charge related to a non-cash deferred tax asset valuation allowance)
-- Deliveries of 15,735 homes - down 53%
-- New orders of 13,391 homes - down 48%; cancellation rate of 26%
Lennar Corporation (NYSE: LEN; LEN.B), one of the nation's largest
homebuilders, today reported results for its fourth quarter and fiscal year
ended November 30, 2008. Fourth quarter net loss in 2008 was $811.0 million,
or $5.12 per diluted share, compared to a net loss of $1.3 billion, or $7.92
per diluted share, in 2007. The net loss for the year ended November 30, 2008
was $1.1 billion, or $7.00 per diluted share, compared to a net loss of $1.9
billion, or $12.31 per diluted share, in 2007.
Stuart Miller, President and Chief Executive Officer of Lennar
Corporation, said, "Broad-based external pressures continued to negatively
impact the housing market during the fourth quarter as rising unemployment,
falling home prices, increased foreclosures, tighter credit and volatile
equity markets further eroded consumer confidence and depressed home sales.
As we enter fiscal 2009, we are hopeful the new administration will approve a
major stimulus package to stimulate housing demand in order to stabilize
housing values, which will reduce foreclosures and stabilize the financial
markets, leading to restored consumer confidence."
Mr. Miller continued, "During the fourth quarter, we were intensely
focused on maximizing our homebuilding operating cash flows. As a result, we
ended our fourth quarter with $1.1 billion in cash and no outstanding
borrowings under our credit facility. During the fourth quarter, we reduced
our land expenditures by almost 70% quarter-over-quarter, converted 127% of
our backlog into deliveries despite difficult market conditions and continued
to right-size our business as S,G&A expenses as a percentage of home sales
improved 100 basis points year-over-year."
"Along with significantly enhancing our balance sheet liquidity, we
reduced the number of our unconsolidated joint ventures to 116, a 20% decrease
from the third quarter, and reduced our maximum unconsolidated joint venture
recourse debt to $520 million, a 71% decrease from the peak in 2006."
Mr. Miller concluded, "In 2009, cash generation will continue to be our
top priority. We will convert inventory to cash and reduce both our land
purchases and homebuilding starts. In addition, we will reduce our cash
outflows by continuing to right-size our overhead to improve our S,G&A
percentage."
RESULTS OF OPERATIONS
THREE MONTHS ENDED NOVEMBER 30, 2008 COMPARED TO
THREE MONTHS ENDED NOVEMBER 30, 2007
Homebuilding
Revenues from home sales decreased 40% in the fourth quarter of 2008 to
$1.2 billion from $2.0 billion in 2007. Revenues were lower primarily due to a
34% decrease in the number of home deliveries and a 10% decrease in the
average sales price of homes delivered in 2008. New home deliveries,
excluding unconsolidated entities, decreased to 4,484 homes in the fourth
quarter of 2008 from 6,810 homes last year. In the fourth quarter of 2008,
new home deliveries were lower in each of the Company's homebuilding segments
and Homebuilding Other, compared to 2007. The average sales price of homes
delivered decreased to $262,000 in the fourth quarter of 2008 from $291,000 in
the same period last year, due to reduced pricing. Sales incentives offered to
homebuyers were $51,400 per home delivered in the fourth quarter of 2008,
compared to $58,800 per home delivered in the same period last year.
Gross margins on home sales excluding SFAS 144 valuation adjustments were
$200.8 million, or 17.0%, in the fourth quarter of 2008, compared to $240.4
million, or 12.1%, in the fourth quarter of 2007. Gross margin percentage on
home sales, excluding SFAS 144 valuation adjustments, improved compared to
last year, primarily due to the Company's lower inventory basis and continued
focus on repositioning its product and reducing construction costs. Gross
margins on home sales were $137.4 million, or 11.6%, in the fourth quarter of
2008, which included $63.4 million of SFAS 144 valuation adjustments, compared
to gross margins on home sales of $15.6 million, or 0.8%, in the fourth
quarter of 2007, which included $224.8 million of SFAS 144 valuation
adjustments. Gross margins on home sales excluding SFAS 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 $131.8
million, or 44%, in the fourth quarter of 2008, compared to the same period
last year, primarily due to the consolidation of divisions, which resulted in
reductions in associate headcount, variable selling expense and fixed costs.
As a percentage of revenues from home sales, selling, general and
administrative expenses improved to 14.1% in the fourth quarter of 2008, from
15.1% in the fourth quarter of 2007.
Losses on land sales totaled $72.5 million in the fourth quarter of 2008,
which included $16.7 million of SFAS 144 valuation adjustments and $62.9
million of write-offs of deposits and pre-acquisition costs related to
approximately 2,700 homesites under option that the Company does not intend to
purchase. In the fourth quarter of 2007, losses on land sales totaled $1.2
billion, which included $970.1 million of SFAS 144 valuation adjustments and
$217.6 million of write-offs of deposits and pre-acquisition costs related to
approximately 12,500 homesites that were under option.
Equity in loss from unconsolidated entities was $6.3 million in the fourth
quarter of 2008, which included $2.4 million of SFAS 144 valuation adjustments
related to assets of unconsolidated entities in which the Company has
investments, compared to equity in loss from unconsolidated entities of $194.8
million in the fourth quarter of 2007, which included $191.5 million of SFAS
144 valuation adjustments related to assets of unconsolidated entities in
which the Company has investments.
Management fees and other expense, net, totaled $78.1 million in the
fourth quarter of 2008, which included $56.3 million of APB 18 valuation
adjustments to the Company's investments in unconsolidated entities and $19.4
million of write-offs of notes receivable, compared to management fees and
other expense, net, of $83.0 million in the fourth quarter of 2007, which
included $85.8 million of APB 18 valuation adjustments to the Company's
investments in unconsolidated entities.
Minority interest income (expense), net was ($4.9) million in the fourth
quarter of 2008, compared to minority interest income (expense), net of $1.3
million in the fourth quarter of 2007.
Due to the Company's termination of its right to purchase certain
LandSource assets, the Company recognized deferred profit of $101.3 million in
the fourth quarter of 2008 (net of $31.8 million of write-offs of option
deposits and pre-acquisition costs and other write-offs) related to the
recapitalization of the Company's LandSource joint venture in 2007.
Sales of land, equity in loss from unconsolidated entities, management
fees and other 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.
Change in Reportable Segments
The Company has disaggregated its Houston homebuilding division from its
Homebuilding Central reportable segment and has presented Houston as a
separate reportable segment due to the division achieving a quantitative
threshold set forth in SFAS 131. All prior year segment information has been
reclassified to conform to the fiscal 2008 presentation. The changes in
reportable segments have no effect on the Company's consolidated financial
position, results of operations or cash flows.
Financial Services
Operating loss for the Financial Services segment was $5.4 million in the
fourth quarter of 2008, compared to an operating loss of $18.7 million in the
same period last year. The reduction in the operating loss was primarily a
result of increased profitability in the segment's mortgage operations and a
reduced loss in the segment's title operations.
Corporate General and Administrative Expenses
Corporate general and administrative expenses were reduced by $4.5
million, or 12%, in the fourth quarter of 2008, compared to the same period
last year. As a percentage of total revenues, corporate general and
administrative expenses increased to 2.4% in the fourth quarter of 2008, from
1.6% in the fourth quarter of 2007, due to lower revenues.
Deferred Tax Asset Valuation Allowance
SFAS 109 requires a reduction of the carrying amounts of deferred tax
assets by a valuation allowance, if based on available evidence, it is more
likely than not that such assets will not be realized. As a result of the
Company's operational results for the three months ended November 30, 2008,
the Company has now incurred cumulative losses over the evaluation period it
established in accordance with SFAS 109. Accordingly, based on the evaluation
of available evidence including the Company's cumulative losses in the
evaluation period, its current level of profits and losses and current market
conditions, the Company has recorded a non-cash valuation allowance against
its deferred tax assets of $730.8 million during the three months ended
November 30, 2008. In future periods, the valuation allowance could be reduced
based on sufficient evidence indicating that it is more likely than not that a
portion of the Company's deferred tax assets will be realized.
YEAR ENDED NOVEMBER 30, 2008 COMPARED TO
YEAR ENDED NOVEMBER 30, 2007
Homebuilding
Revenues from home sales decreased 56% in the year ended November 30, 2008
to $4.2 billion from $9.5 billion in 2007. Revenues were lower primarily due
to a 51% decrease in the number of home deliveries and a 9% decrease in the
average sales price of homes delivered in 2008. New home deliveries,
excluding unconsolidated entities, decreased to 15,344 homes in the year ended
November 30, 2008 from 31,582 homes last year. In the year ended November 30,
2008, new home deliveries were lower in each of the Company's homebuilding
segments and Homebuilding Other, compared to 2007. The average sales price of
homes delivered decreased to $270,000 in the year ended November 30, 2008 from
$297,000 in 2007, due to reduced pricing. Sales incentives offered to
homebuyers were $48,700 and $48,000 per home delivered in the years ended
November 30, 2008 and 2007, respectively.
Gross margins on home sales excluding SFAS 144 valuation adjustments were
$705.1 million, or 17.0%, in the year ended November 30, 2008, compared to
$1.3 billion, or 13.9%, in 2007. Gross margin percentage on home sales,
excluding SFAS 144 valuation adjustments, improved compared to last year
primarily due to the Company's lower inventory basis and continued focus on
repositioning its product and reducing construction costs. Gross margins on
home sales were $509.6 million, or 12.3%, in the year ended November 30, 2008,
which included $195.5 million of SFAS 144 valuation adjustments, compared to
gross margins on home sales of $570.7 million, or 6.0%, in the year ended
November 30, 2007, which included $747.8 million of SFAS 144 valuation
adjustments.
Selling, general and administrative expenses were reduced by $713.1
million, or 52%, in the year ended November 30, 2008, compared to last year,
primarily due to the consolidation of divisions, which resulted in reductions
in associate headcount, variable selling expense and fixed costs. As a
percentage of revenues from home sales, selling, general and administrative
expenses increased to 15.8% in the year ended November 30, 2008, from 14.5% in
2007, due to lower revenues.
Losses on land sales totaled $133.2 million in the year ended November 30,
2008, which included $47.8 million of SFAS 144 valuation adjustments and $97.2
million of write-offs of deposits and pre-acquisition costs related to
approximately 8,200 homesites under option that the Company does not intend to
purchase. In the year ended November 30, 2007, losses on land sales totaled
$1.7 billion, which included $1.2 billion of SFAS 144 valuation adjustments
and $530.0 million of write-offs of deposits and pre-acquisition costs related
to approximately 36,900 homesites that were under option.
Equity in loss from unconsolidated entities was $59.2 million in the year
ended November 30, 2008, which included $32.2 million of SFAS 144 valuation
adjustments related to assets of unconsolidated entities in which the Company
has investments, compared to equity in loss from unconsolidated entities of
$362.9 million in the year ended November 30, 2007, which included $364.2
million of SFAS 144 valuation adjustments related to assets of unconsolidated
entities in which the Company has investments.
Management fees and other expense, net totaled $200.0 million in the year
ended November 30, 2008, which included $172.8 million of APB 18 valuation
adjustments to the Company's investments in unconsolidated entities and $25.0
million of write-offs of notes receivable, compared to management fees and
other expense, net of $76.0 million in the year ended November 30, 2007, which
included $132.2 million of APB 18 valuation adjustments to the Company's
investments in unconsolidated entities.
Minority interest income (expense), net was $4.1 million in the year ended
November 30, 2008, compared to minority interest income (expense), net of
($1.9) million in the year ended November 30, 2007.
Due to the Company's termination of its right to purchase certain
LandSource assets, the Company recognized deferred profit of $101.3 million in
the year ended November 30, 2008 (net of $31.8 million of write-offs of option
deposits and pre-acquisition costs and other write-offs) related to the
recapitalization of the Company's LandSource joint venture in 2007.
Sales of land, equity in loss from unconsolidated entities, management
fees and other 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 $31.0 million in the
year ended November 30, 2008, compared to operating earnings of $6.1 million
in the same period last year. The decline in profitability was primarily due
to a goodwill write-off of $27.2 million related to the segment's mortgage
operations and lower transactions in the segment's title and mortgage
operations.
Corporate General and Administrative Expenses
Corporate general and administrative expenses were reduced by $43.5
million, or 25%, for the year ended November 30, 2008, compared to 2007. As a
percentage of total revenues, corporate general and administrative expenses
increased to 2.8% in the year ended November 30, 2008, from 1.7% in the same
period last year, due to lower revenues.
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,
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, cash
flows, 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, 2007. We do not
undertake any obligation to update forward-looking statements, except as
required by Federal securities laws.
A conference call to discuss the Company's fourth quarter earnings will be
held at 11:00 a.m. Eastern time on Thursday, December 18, 2008. The call will
be broadcast live on the Internet and can be accessed through the Company's
website at www.lennar.com. If you are unable to participate in the conference
call, the call will be archived at www.lennar.com for 90 days. A replay of
the conference call will also be available later that day by calling 203-369-
3956 and entering 5932669 as the confirmation number.
LENNAR CORPORATION AND SUBSIDIARIES
Selected Revenues and Operational Information
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Years Ended
November 30, November 30,
2008 2007 2008 2007
Revenues:
Homebuilding $1,206,562 2,096,084 4,263,038 9,730,252
Financial services 71,486 80,821 312,379 456,529
Total revenues $1,278,048 2,176,905 4,575,417 10,186,781
Homebuilding operating
loss $ (58,228) (1,914,611) (400,786) (2,913,999)
Financial services
operating earnings (loss) (5,423) (18,714) (30,990) 6,120
Corporate general and
administrative expenses (31,299) (35,766) (129,752) (173,202)
Loss before (provision)
benefit for income taxes (94,950) (1,969,091) (561,528) (3,081,081)
(Provision) benefit for
income taxes (716,039) 717,444 (547,557) 1,140,000
Net loss $ (810,989) (1,251,647) (1,109,085) (1,941,081)
Basic and diluted average
shares outstanding 158,529 158,072 158,395 157,718
Basic and diluted loss per
share $ (5.12) (7.92) (7.00) (12.31)
Supplemental information:
Interest incurred(1) $ 37,576 41,613 148,293 199,073
EBIT before valuation
adjustments and write-
offs of option deposits
and pre-acquisition
costs, goodwill and
notes receivable(2):
Loss before (provision)
benefit for income
taxes $ (94,950) (1,969,091) (561,528) (3,081,081)
Interest expense 32,371 48,041 130,357 203,700
Valuation adjustments
and write-offs of
option deposits and
pre-acquisition costs,
goodwill and notes
receivable 221,099 1,864,009 597,710 3,160,110
EBIT before valuation
adjustments and write-
offs of option deposits
and pre-acquisition
costs, goodwill and
notes receivable $ 158,520 (57,041) 166,539 282,729
(1) Amount represents interest incurred related to homebuilding debt,
which is primarily 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 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 notes receivable reflected in loss before
(provision) benefit for income taxes. This financial measure 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.
LENNAR CORPORATION AND SUBSIDIARIES
Homebuilding Information
(In thousands)
(unaudited)
Three Months Ended Years Ended
November 30, November 30,
2008 2007 2008 2007
Revenues:
Sales of homes $1,183,066 1,983,618 4,150,717 9,462,940
Sales of land 23,496 112,466 112,321 267,312
Total revenues 1,206,562 2,096,084 4,263,038 9,730,252
Costs and expenses:
Cost of homes sold 1,045,622 1,968,044 3,641,090 8,892,268
Cost of land sold 96,010 1,293,643 245,536 1,928,451
Selling, general and
administrative 166,967 298,783 655,255 1,368,358
Total costs and
expenses 1,308,599 3,560,470 4,541,881 12,189,077
Gain on recapitalization
of unconsolidated
entity 133,097 - 133,097 175,879
Goodwill impairments - (173,701) - (190,198)
Equity in loss from
unconsolidated entities (6,299) (194,762) (59,156) (362,899)
Management fees and
other expense, net (78,086) (83,025) (199,981) (76,029)
Minority interest income
(expense), net (4,903) 1,263 4,097 (1,927)
Operating loss $ (58,228) (1,914,611) (400,786) (2,913,999)
LENNAR CORPORATION AND SUBSIDIARIES
Valuation Adjustments and Write-offs
(In thousands)
(unaudited)
Three Months Ended Years Ended
November 30, November 30,
2008 2007 2008 2007
SFAS 144 valuation adjustments to
finished homes, CIP and land on
which the Company intends to
build homes:
East $ 25,824 67,114 76,791 279,064
Central 7,035 30,427 28,142 91,354
West 26,654 115,756 75,614 331,827
Houston 1,468 651 2,262 2,836
Other 2,404 10,863 12,709 42,762
Total 63,385 224,811 195,518 747,843
SFAS 144 valuation adjustments to
land the Company intends to sell
or has sold to third parties:
East 9,411 235,228 23,251 307,534
Central 1,598 60,397 12,369 79,101
West 5,657 584,587 11,094 648,628
Houston 29 1,422 137 1,762
Other 47 88,442 940 130,269
Total 16,742 970,076 47,791 1,167,294
Write-offs of option deposits and
pre-acquisition costs:
East 7,979 45,314 18,989 119,645
Central 188 7,508 6,024 56,304
West 52,374 146,336 62,447 310,795
Houston - 196 745 813
Other 2,331 18,242 8,967 42,424
Total 62,872 217,596 97,172 529,981
Company's share of SFAS 144
valuation adjustments related
to assets of unconsolidated
entities:
East - 48,146 7,241 55,157
Central 1,574 18,997 1,732 29,585
West 805 118,566 22,675 273,679
Houston - - - -
Other - 5,741 597 5,741
Total 2,379 191,450 32,245 364,162
APB 18 valuation adjustments to
investments in unconsolidated
entities:
East 34,169 15,481 54,340 42,200
Central 10,776 8,800 11,197 14,552
West 7,600 58,487 90,193 68,883
Houston - - - -
Other 3,754 3,066 17,060 6,571
Total 56,299 85,834 172,790 132,206
Write-offs of notes receivable:
East 10,200 - 10,200 -
Central - - - -
West 9,222 - 10,222 -
Houston - - - -
Other - - 4,596 -
Total 19,422 - 25,018 -
Goodwill impairments:
East - 46,274 - 46,274
Central - 28,465 - 31,293
West - 43,955 - 43,955
Houston - - -
Other - 55,007 - 68,676
Total - 173,701 - 190,198
Financial services write-offs of
notes receivable - 541 - 28,426
Financial services goodwill
impairments - - 27,176 -
Total valuation adjustments
and write-offs of option
deposits and pre-
acquisitions costs,
goodwill and notes
receivable $221,099 1,864,009 597,710 3,160,110
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,
2008 2007 2008 2007
Deliveries:
East 1,517 2,087 4,957 9,840
Central 605 1,352 2,442 7,020
West 1,157 1,855 4,031 8,739
Houston 791 911 2,736 4,380
Other 448 839 1,569 3,304
Total 4,518 7,044 15,735 33,283
Of the total deliveries listed above, 34 and 391, respectively, represent
deliveries from unconsolidated entities for the three months and year
ended November 30, 2008, compared to 234 and 1,701 deliveries in the same
periods last year.
New Orders:
East 763 1,197 3,953 7,492
Central 469 1,025 2,280 5,055
West 634 1,418 3,396 6,765
Houston 449 578 2,416 3,621
Other 248 543 1,346 2,820
Total 2,563 4,761 13,391 25,753
Of the total new orders listed above, there were 38 net cancellations from
unconsolidated entities for the three months ended November 30, 2008 and
174 net new orders from unconsolidated entities for the year ended
November 30, 2008, compared to 123 and 1,091 net new orders in the same
periods last year.
Backlog - Homes:
East 787 1,797
Central 123 285
West 247 942
Houston 269 589
Other 173 396
Total 1,599 4,009
Of the total homes in backlog listed above, 8 represents homes in backlog
from unconsolidated entities at November 30, 2008, compared to
364 homes in backlog at November 30, 2007.
Backlog - Dollar Value:
East $202,791 587,100
Central 23,736 67,344
West 108,779 408,280
Houston 57,785 128,340
Other 63,179 193,073
Total $456,270 1,384,137
Of the total dollar value of homes in backlog listed above, $12,460
represents the backlog dollar value from unconsolidated entities at
November 30, 2008, compared to $182,664 of backlog dollar value at
November 30, 2007.
Lennar's reportable homebuilding segments and homebuilding other consist
of homebuilding divisions located in:
East: Florida, Maryland, New Jersey and Virginia
Central: Arizona, Colorado and Texas (1)
West: California and Nevada
Houston: Houston, Texas
Other: Illinois, Minnesota, New York, North Carolina and South Carolina
(1) Texas in the Central reportable segment excludes Houston, Texas which
is its own reportable segment.
LENNAR CORPORATION AND SUBSIDIARIES
Supplemental Data
(Dollars in thousands)
(unaudited)
November 30,
2008 2007
Homebuilding debt $2,544,935 2,295,436
Stockholders' equity 2,623,007 3,822,119
Total capital $5,167,942 6,117,555
Homebuilding debt to total capital 49.2% 37.5%
Homebuilding debt $2,544,935 2,295,436
Less: Homebuilding cash 1,091,468 642,467
Net homebuilding debt $1,453,467 1,652,969
Net homebuilding debt to total
capital(1) 35.7% 30.2%
(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).
