EmailLennar (LEN) reported first quarter earnings of $0.24 per share, ex-$0.02 tax benefit, $0.08 better than the Capital IQ Consensus Estimate of $0.16; revenues rose 36.6% year/year to $989.9 mln vs the $932.99 mln consensus. Excluding the $3.6 mln net tax benefit (see excerpt from press release below), adj. EPS was ~$0.24 vs. the $0.16 consensus.
Additional Metrics:
- Deliveries of 3,186 homes - up 28%
- New orders of 4,055 homes - up 34%; cancellation rate of 15%
- Backlog of 4,922 homes - up 82%; backlog dollar value of $1.5 bln - up 105%
- Gross margin on home sales of 22.1% - improved 120 basis points
"During the first quarter of 2013, the Company concluded that it was more likely than not that a portion of its state deferred tax assets would be utilized. This conclusion was based on additional positive evidence including actual and forecasted earnings. Accordingly, during the first quarter of 2013, the Company reversed $25.1 million of its valuation allowance against its state deferred tax assets. This reversal was offset by a tax provision of $21.5 million primarily related to first quarter 2013 pre-tax earnings. Therefore, the Company had a $3.6 million net benefit for income taxes in the first quarter of 2013. As of February 28, 2013, the Company's remaining valuation allowance against its deferred tax assets was $63.7 million, which is primarily state net operating loss carryforwards, and in future periods could be reversed if additional sufficient positive evidence is present indicating that it is more likely than not that such assets would be realized.
