Lennar Corp Q2 2022 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Susan Marie Maklari - Goldman Sachs Group, Inc., Research Division - Analyst : My first question is, you commented that you have seen some relative improvement in the supply chain, and it feels like we are maybe at or coming off of the peak there. Can you give a bit more color in terms of what you're seeing on that side? And obviously, as the demand does shift and moderate a bit, how you're thinking of the further improvement that can come through there? Jonathan M. Jaffe - Lennar Corporation - Co-CEO, Co-President & Director Relative to the second part of your question, as always, there's a lag between any shift in market and a shift in what's going through in terms of construction volume as the construction trades and the supply chain built through the backlog that's under construction. Relative to what we're seeing, as I said in my comments, there's still disruptions but both we and our suppliers are much better positioned today. Everyone has learned a lot over the last 2 years and are able to respond very quickly to solving problems. We're at the earlier parts of the pandemic and disruptions, it sometimes could take months to solve problems. They're not being resolved in days. And the 2 areas where there are still ongoing shortages is really in electrical equipment and in flex duct. But even those, we're in close communication with our trade partners that supply that they've got all the visibility in terms of what our needs are for the coming quarters and it's a very close working relationship.

Question: Susan Marie Maklari - Goldman Sachs Group, Inc., Research Division - Analyst : Okay. That's helpful color. My follow-up question is when you do think about balance sheet and uses of cash in general? You noted that you did buy back some stock in the second quarter. As things do moderate but you continue to pursue your strategy around land and this spin of Quarterra and all these other efforts that you've been working on, how do you think of uses of cash and especially maybe shareholder returns in a more moderate housing environment?