Lennar Corporation (NYSE:LEN) Q3 2020 Earnings Conference Call - Final Transcript

Sep 15, 2020 • 11:00 am ET

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Lennar Corporation (NYSE:LEN) Q3 2020 Earnings Conference Call - Final Transcript

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Q & A
Executive
Rick Beckwitt

There is really premium pricing available for things that are close to completion or completed. And it doesn't make sense for us to sell, so early or do a direct sale when we can command a higher price because people want something they can move into.

Executive
Stuart Miller

At the end of the day -- let me just say that at the end of the day for us, it comes down to margin and margin growth and margin focus. We're going to be able to increase returns on the assets that we have and have a measured approach going forward. I think it's very difficult in this market to ramp-up production at an accelerated rate, when we see sales rates coming in with the very high rate production, just has to lag, there is only so much that can be brought to the market at any one time.

Analyst
Ivy Zelman

And I would just add just, maybe how you frame the market share question because we had a bunch of questions this morning. If we think about market share over a two-year period, and thinking about being the leading builder in the US, there is no question that next year, these builders are going to have a very challenging time growing off of that. So maybe just comment around market share and recognizing you guys aren't about market share, it's about returns, but just comment on market share, if you would please? Thank you and good luck.

Executive
Stuart Miller

Okay. Thank you, Rick, Jon? Go ahead.

Executive
Jon Jaffe

I think we've talked for a long time Ivy about our size and scale, position and -- we're number one or two in -- virtually all the markets that we're in, and the size and scale really gives us an advantage relative to land positions. As they go to builder for the land sellers and add the go to builder for the trades. And in this constrained environment that strategic position, very important to us and it's one that we're not going to give up. But that is a very, as we said, very steady and measured pace creating predictability for both land and for the trades.

Executive
Rick Beckwitt

And I guess the other thing I'd add Ivy, which is just math. If you just take a 16% growth in sales for the quarter on a 50,000 plus type of run rate and compare that to a much higher growth rate, on a much smaller builder, we're still gaining share.

Executive
Stuart Miller

Okay, next question?

Analyst
Ivy Zelman

Thanks guys.

Operator
Operator

Thank you. Our next question is from Carl Reichardt from BTIG. Your line is open.

Analyst
Carl Reichardt

Hi, thanks, everybody. I had a couple of questions on my end -- for you all. You know about -- constraints from a product perspective, from a labor perspective. Can you talk about if there has been some normalization in terms of permitting processes, entitlements and approvals, since we've seen COVID sort of come back a little bit here. Are we seeing some normalization in the time it takes to get land