ANNUALREPORT2004“AsIlookbackoverthislastyear,IdosowithagreatdealofrespectandappreciationfortheAssociatesofLennarwhohavecontributedtooursuccesses.”LETTERTOSHAREHOLDERSDEARSHAREHOLDERS,Aswecompleteourfirst50years,IcannothelpbutreflectbackontheaccomplishmentsofourCompany,ajourneythatbeganwiththedeliveryoflessthan100homesin1954.SincethathumblebeginninghereinMiami,wehavecreatedshareholders’equityofover$4billion,amarketcapitalizationofapproximately$9billion,andbuilthomesandcommunitiesforapproximately600,000familiesacrossAmerica.PerhapstheonethingIammostpleasedtoreflectonisthatwehaverelentlesslyandconsistentlygrownourCompanyyearafteryearwiththecoreconceptsofQuality,ValueandIntegrityasourguidingforce.AsIlookbackoverthislastyear,Idosowithagreatdealofrespectandappreciationforthenearly12,000homebuilding,landdevelopment,andfinancialservicesAssociateswhohavecontributedtoourrecordfinancialperformance.In2004,Lennarachievedrevenuesof$10.5billion,netearningsof$945.6millionandearningspershareof$5.70.Ourproductandgeographicdiversityhavegrownaswell.Todaywebuildhomesforallages,fromfirst-timebuyerstoretirees,in16statesacrossourcountry.Oursenseofresponsibilityhasgrowneverstrongerthroughtheyearsaswell.TheresponsibilitieswehavetoourCommunity,toourShareholders,toourHomeownersandtoourAssociatesspeakstowhoLennaris–aCompanythatdoestherightthing,fortherightreason,takingcareofthepeoplewhoneedusthemost.YouwillnotethatthisyearourAnnualReportisinasimplerformatthaninpastyears.ThisletterandourForm10-Kmakeupitstotalcontent.However,wealsoinviteyoutoreviewtheaccompanying“CorporateResponsibilityReport,”whichisourreporttoyouontheprogresswehavemade,andthegoalsweyetwishtoachieve,intheever-importantsubjectofCorporateResponsibility.WeaddressourbeliefsofourresponsibilitiestoourCommunity,Shareholders,Homeowners,Associates,andEnvironmentthroughthisreport.Wehopeyoufinditinformative,andthatitreassuresyouthatourCompanycontinuestodotherightthing,fortherightreason.Aswelookaheadto2005andbeyond,ourstrategyremainssimpleandconsistent.Weremaina“balancesheetfirst”focusedCompanyand,accordingly,willcontinuetoexecuteourbusinessplanwithconservativeleverageandsubstantialliquidity.Wewillcontinuetofortifyouralreadystrongmarketpositionswithabalancedgrowthplanoforganicexpansionandstrategicacquisitions.WewillcontinuetolookfornewgeographicexpansionstogrowthefootprintofourCompanyacrossthecountry.WewillalsocontinuetoaugmentandrefineourDualMarketingstrategyofEverything’sIncluded®andDesignStudioSMprogramsineachmarkettoimprovelandabsorption.WecallthisbusinessmodeltheLennarProcessandthisprocesshaskeptusonacarefullymanagedcourseofgrowthanddependabilityfordecades.Additionally,aswemoveintofiscal2005,wewillcontinuetobuilduponthestrengthofourcorporatefoundationthroughQuality,ValueandIntegrity.With$1.3billionincashandadebttototalcapitalratioof33.3%,wearepoisedtocontinueourpositionofstrengthintheindustry.Ourbalancesheetremainsstrong,andourleverageremainsataverylowlevel.AlltogetherthesefactorspositionourCompanytocapitalizeonmarketinefficienciesandopportunitiesastheyarise,andtowithstandpossibleadversemarketconditionsshouldtheypresentthemselves.Inclosing,IwouldliketothankallofourShareholders,AssociatesandBusinessPartnersfortheircontributionstoanotheroutstandingyearforLennar.Welookforwardtobuildinguponthesuccessofthispastyeartogether,aswegrowfor...
