Lennar Corporation (NYSE:LEN) Q3 2020 Earnings Conference Call - Final Transcript
Sep 15, 2020 • 11:00 am ET
over time, some of them will become our new way of life.
Regardless, home is a refuge where families thrive through the best of times and sometimes as well through the toughest of time. At Lennar, we are focused on meeting the needs and the changing appetite and aspirations of this changing world and we have never been better positioned financially, organizationally and technologically to meet the challenge, as well as the demand.
With that, let me turn it over to Diane.
So, thank you, Stuart, and good morning to everyone. So I'd like to begin with a few Q3 highlights and then provide detailed guidance for Q4.
And so let's start with our balance sheet. As Stuart mentioned, as a result of our continued focus on cash flow generation, we ended the quarter with $2 billion of cash and no borrowings outstanding on our $2.4 billion revolving credit facility. On a year-to-date basis, through the end of Q3, we have generated $1.8 billion of Homebuilding cash flow. We also continue to make progress to become land lighter, as stated our years to supply owned decreased to 3.8 years and our homesites controlled increased 35% of total home sites.
For the quarter, our land acquisition spend was $607 million and our land development spend was $571 million. Additionally, we also made progress with our goal of reducing debt. During the quarter, we paid off approximately $400 million of debt. And as a result, our quarter-end homebuilding debt to total capital ratio was 29.5%. This is the lowest debt to total capital ratio we have ever achieved. Our focus on debt reduction will continue as we pay off $300 million of senior notes due in November.
Since the acquisition of CalAtlantic and including notes we intend to pay off in the fourth quarter, we will have repaid $2.8 billion of senior notes, which results in an annual interest savings of approximately $156 million. Our stockholders' equity increased to $17.2 billion and our book value per share was $54.91.
And so with those balance sheet highlights, let me now briefly review our operating performance. As we said, we ended the quarter with new orders of 15,564, up 16%. And our new orders dollar value with $6.3 billion, up 20%. Sales were matched with starts and our starts were up 17% year-over-year. Our sales pace was 4.2 for the quarter compared to 3.4 in the prior year, and we ended the community's with 1,198. We ended the quarter with 1,198 communities.
Our cancellation rate was 15% compared to 19% sequentially in Q2 and 16% in Q3 of the prior year. For the quarter, deliveries totaled 13,842, up 2% and both deliveries and new orders were the highest for third quarter in the Company's history.
Our gross margin was 23.1%, as a result of strong pricing power and our focus on construction costs. And our SG&A was 8%, as a result of creating an efficient platform and continuing benefits from technology. The 8% is