Lennar Corporation (NYSE:LEN) Q3 2019 Earnings Conference Call Transcript

Oct 02, 2019 • 11:00 am ET

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Lennar Corporation (NYSE:LEN) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to Lennar's Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the presentation, we will conduct a question-and-answer session. 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 statements.

Executive
David Collins

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.

Operator
Operator

I would like to introduce your host, Mr. Stuart Miller, Executive Chairman. Sir, you may begin.

Executive
Stuart Miller

Great. Good morning and thank you.

This morning, I'm here with Rick Beckwitt, our Chief Executive Officer; Jon Jaffee, our President; Diane Bessette, Chief Financial Officer; and David Collins, who you just heard from. We're out in California today with our Board. We have our Board Meeting tomorrow, but we're touring our Board on some of our properties out in California, showing them what makes us the company that we are.

I'm going to start today with a brief overview, Rick and Jon are going to give some additional operational remarks and Diane will deliver further detail on our third quarter numbers as well as some additional guidance for the remainder of this year. As always, when we get to Q&A, we'd like to ask that you limit your questions to just one question and one follow-up so that we can accommodate as many participants as possible.

So, let me go ahead and begin by saying that we're very pleased to report a very strong third quarter performance that reflects both the continued recovery in the housing market as well as continued focus on leveraging our size and scale and delivering greater cash flow and higher returns. Our results reflect the fact that the housing market continued to strengthen throughout the third quarter, confirming and continuing the trend that we reported in our earnings call last quarter. The market for new homes has been improving from last year's pause as lower interest rates have stimulated demand and improved affordability while the overall fundamentals of the economy have remained strong.

We clearly saw traffic and sales continue to strengthen in the third quarter, as a combination of lower interest