Home builder Lennar Corp. reported revenues of $796.4 million for its second fiscal quarter, a 23% jump from revenues of $649.8 million in 2011. Revenues were higher primarily due to a 20% increase in the number of home deliveries, excluding unconsolidated entities, and a 2% increase in the average sales price of homes delivered. New-home deliveries increased to 3,192 homes in the second quarter of 2012, from 2,652 homes last year.
The average sales price of homes delivered increased to $250,000 in the second quarter of 2012 from $245,000 in the same period last year. Sales incentives offered to home buyers were $29,800 per home delivered in the second quarter of 2012, or 10.7% as a percentage of home sales revenue, compared with $33,900 per home delivered in the same period last year, or 12.1% as a percentage of home sales revenue.
Net income for the quarter, which ended May 31, rose to $452.7 million, compared with $13.8 million a year ago. The big increase was attributed to a $403 million partial reversal of deferred tax assets, which stemmed from losses incurred during the housing bust.
Lennar home-building net income totaled $12.8 million in the second quarter of 2012, primarily due to a $15.0 million gain on the sale of an operating property, compared with net income of $9.5 million in the second quarter of 2011, of which $5.1 million related to the favorable resolution of a joint venture.
In a prepared statement, Lennar CEO Stuart Miller said: “Evidence from the field suggests that the 'for sale' housing market has, in fact, bottomed and that we have commenced a slow and steady recovery process. And while the housing downturn was broad-based and national, the recovery process continues to be very localized. Although highly conservative mortgage lending practices and challenging appraisals remain a constant headwind, we are experiencing net positive price and volume trends in most of our markets."
The Miami-based company delivered 3,222 homes in the second quarter, up 20% from the same quarter in 2011. New orders of 4,481 homes rose 40% from last year’s second quarter. The company’s backlog of homes is 3,970, an increase of 61% from 3,970 homes in the corresponding period of 2011.
Founded in 1954, Lennar builds affordable, move-up and retirement homes in 18 states.