Lennar Corporation (NYSE:LEN) Q3 2016 Earnings Conference Call - Final Transcript
Sep 20, 2016 • 11:00 am ET
Welcome to Lennar's Third Quarter Earnings Conference Call. [Operator Instructions] Today's conference is being recorded. If you have any objections, you may disconnect at this time. I will now turn the call over to David Collins for the reading of the forward-looking statement.
Thank you and good morning everyone. Today's conference call may include forward-looking statements, including statements regarding Lennar's business, financial condition, results of operations, cash flows, strategies and prospects. Forward-looking statements represent only Lennar's estimates on the date of this conference call and are not intended to give any assurance as to actual future 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 affect future results and may cause Lennar's actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described in this morning's press release and our SEC filings, including those under the caption Risk Factors contained in Lennar's annual report on Form 10-K most recently filed with the SEC. Please note that Lennar assumes no obligation to update any forward-looking statements.
Thank you. I would like to introduce your host, Mr. Stuart Miller, your CEO. Sir, you may begin.
Great. Good morning, everyone. Thanks for joining us. And I am here this morning joined by an assorted group of our management team, including Bruce, of course, our Chief Financial Officer; Rick Beckwitt our President; and Jon Jaffe, our Chief Operating Officer; Jeff Krasnoff, CEO of Rialto; and some others. But those will be the primary participants. I am going to briefly give some remarks and then Bruce will jump in with some additional detail and then we will open up to Q&A. And as usual, I would like to request that we can get as many questions as possible in our hour that you limit yourself to one question and just one follow-up please.
So, great. Let me go ahead and begin and say that our third quarter 2016 results reflect yet another quarter of strong operating results for our company. We have consistently believed that we are in a slow steady, though sometimes choppy, housing market recovery, and we have crafted our operating strategies specifically to position us well to grow steadily and consistently and to act opportunistically in these market conditions. As we have noted over the past years, the overall housing market has been generally defined by a rather large production deficit that continued to grow over the past years. This deficit is particularly focused on the first time homebuyer segment of the market, and this part of the market was rather late to begin its slow and steady improvement as well.
While questions have been raised as to the real normalized levels of production that are required to serve the growing US population, we continue to believe that production levels in the 1 million to 1.2 million starts per year range are still too low for the needs