Lennar Corporation (NYSE:LEN) Q4 2019 Earnings Conference Call - Final Transcript
Jan 08, 2020 • 11:00 am ET
Welcome to Lennar's Fourth 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. [Operator Instructions]
I will now turn the call over to Alexandra Lumpkin for the reading of the forward-looking statements.
Thank you, and good morning. 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.
I would like to introduce your host, Mr. Stuart Miller, Executive Chairman. Sir, you may begin.
Great. Good morning, everyone and thank you. This morning, I'm here in MIAMI with Rick Beckwitt, our Chief Executive Officer; Jon Jaffe, our President; Diane Bessette, Chief Financial Officer; and Dave Collins, our Controller; and, of course, you just heard from Alex.
I'm going to start as I always do with a brief overview; Jon and Rick are going to give some additional operational remarks; and Diane will deliver further detail on our fourth quarter and year-end numbers as well as some guidance for our first quarter and our full-year 2020. As always when we get to our 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 this is another excellent quarter and year-end for the Company as we continue to focus on performance, cash flow and total shareholder returns. We're very pleased to report record quarterly performance together with a record strong finish to 2019 that started off paused and sluggish and ended the year with a rather robust housing market. Our results reflect both the continued strength in the housing market as well as our continued focus on leveraging size and scale to drive greater cash flow and higher returns on equity and on capital.
On the macro front, the housing market continued to strengthen throughout the fourth quarter, confirming the continuing -- trend that we reported in our last two quarterly earnings calls. The market for new homes has continued with steady improvement from last year's pause, as lower interest rates have stimulated demand while the overall fundamentals of the economy have remained strong. We clearly saw traffic and sales continue to