Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national
homebuilder, reported results for its fiscal fourth quarter and
year ended October 31, 2020.
RESULTS FOR THE FOURTH QUARTER AND YEAR
ENDED OCTOBER 31, 2020:
- Total revenues were $683.4 million in the fourth quarter of
fiscal 2020, compared with $713.6 million, a decrease of 4.2%, in
the same period of the prior year. For the year ended October 31,
2020, total revenues increased 16.2% to $2.34 billion compared with
$2.02 billion in the prior fiscal year.
- Homebuilding gross margin
percentage, after cost of sales interest expense and land charges,
increased 290 basis points to 17.4% for the three months ended
October 31, 2020 compared with 14.5% during the same period a year
ago. During fiscal 2020, homebuilding gross margin percentage,
after cost of sales interest expense and land charges, was 14.7%
compared with 14.2% last year.
- Homebuilding gross margin
percentage, before cost of sales interest expense and land charges,
increased 130 basis points to 20.2% during the fiscal 2020 fourth
quarter compared with 18.9% in last year’s fourth quarter. For the
year ended October 31, 2020, homebuilding gross margin percentage,
before cost of sales interest expense and land charges, was 18.4%
compared with 18.1% in the prior year.
- Total SG&A was $65.6 million,
or 9.6% of total revenues, in the fiscal 2020 fourth quarter
compared with $53.9 million, or 7.6% of total revenues, in the
previous year’s fourth quarter. During fiscal 2020, total SG&A
was $241.8 million, or 10.3% of total revenues, compared with
$233.1 million, or 11.6% of total revenues, in the prior fiscal
year.
- Total interest expense was $40.6
million for the fourth quarter of fiscal 2020 compared with $50.3
million during the fourth quarter of fiscal 2019. For the year
ended October 31, 2020, total interest expense was $178.1 million
compared with $160.8 million last year.
- Income from unconsolidated joint
ventures was $3.1 million for the fourth quarter ended October 31,
2020 compared with $8.4 million in the fiscal 2019 fourth quarter.
For fiscal 2020, income from unconsolidated joint ventures was
$16.6 million compared with $28.9 million a year ago.
- Income before income taxes for the fourth quarter of fiscal
2020 was $42.4 million compared with a loss of $0.6 million in the
fourth quarter of the prior fiscal year. For fiscal 2020, income
before income taxes was $55.4 million compared with a loss of $39.7
million during fiscal 2019.
- Adjusted pretax income, which is
income before income taxes excluding land-related charges, joint
venture write-downs and gain or loss on extinguishment of debt, was
$45.1 million in the fourth quarter of fiscal 2020 compared with
income before these items of $44.5 million in the fiscal 2019
fourth quarter. For the year ended October 31, 2020, adjusted
pretax income was $50.9 million compared with income before these
items of $9.9 million during fiscal 2019.
- Net income was $40.6 million, or
$5.54 per diluted common share, for the three months ended October
31, 2020 compared with a net loss of $1.8 million, or $0.30 per
common share, in the fourth quarter of the previous fiscal year.
For fiscal 2020, net income was $50.9 million, or $7.03 per diluted
common share, compared with a net loss of $42.1 million, or $7.06
per common share, in fiscal 2019.
- EBITDA increased 65.9% to $84.5
million for the fourth quarter of fiscal 2020 compared with $50.9
million in the same quarter of the prior year. For fiscal 2020,
EBITDA increased 90.6% to $238.8 million compared with $125.3
million in fiscal 2019.
- Financial services income before
income taxes was $12.1 million for the fourth quarter of fiscal
2020, up 34.1% compared with $9.0 million in the fourth quarter of
fiscal 2019. For fiscal 2020, financial services income before
income taxes was $32.1 million, up 82.1% compared with $17.6
million one year ago.
- Consolidated contracts per
community increased 73.7% to 16.5 contracts per community for the
fourth quarter ended October 31, 2020 compared with 9.5 contracts
per community in last year’s fourth quarter. Contracts per
community, including domestic unconsolidated joint ventures(1),
increased 74.7% to 15.9 for the fourth quarter of fiscal 2020
compared with 9.1 for the fourth quarter of fiscal 2019.
- The number of consolidated
contracts increased 42.6% to 1,918 homes during the fiscal 2020
fourth quarter, compared with 1,345 homes in last year’s fourth
quarter. The number of contracts, including domestic unconsolidated
joint ventures, for the three months ended October 31, 2020,
increased 44.9% to 2,143 homes from 1,479 homes during the same
quarter a year ago.
- For fiscal 2020, the number of
consolidated contracts increased 30.2% to 6,953 homes compared with
5,340 homes in fiscal 2019. The number of contracts, including
domestic unconsolidated joint ventures, for the year ended October
31, 2020, increased 28.7% to 7,692 homes from 5,976 homes a year
ago.
- As of the end of the fourth quarter
of fiscal 2020, community count, including domestic unconsolidated
joint ventures, was 135 communities, compared with 162 communities
at October 31, 2019. Consolidated community count was 116 as of
October 31, 2020, compared with 141 communities at the end of the
previous year’s fourth quarter. The decline was primarily a result
of selling out of communities at a faster than anticipated pace, 15
delayed community openings and contributing four consolidated
communities to unconsolidated joint ventures earlier this
year.
- For November 2020, consolidated
contracts per community increased 48.3% to 4.3 compared with 2.9
for the same month one year ago. During November 2020, the number
of consolidated contracts increased 22.0% to 493 homes from 404
homes in November 2019.
- The dollar value of consolidated
contract backlog, as of October 31, 2020, increased 61.3% to $1.42
billion compared with $880.1 million as of October 31, 2019. The
dollar value of contract backlog, including domestic unconsolidated
joint ventures, as of October 31, 2020, increased 54.0% to $1.60
billion compared with $1.04 billion as of October 31, 2019.
- Consolidated deliveries were 1,572
homes in the fiscal 2020 fourth quarter compared with 1,709 homes
in the previous year’s fourth quarter. For the fiscal 2020 fourth
quarter, deliveries, including domestic unconsolidated joint
ventures, were 1,735 homes compared with 1,941 homes during the
fourth quarter of fiscal 2019.
- For fiscal 2020, consolidated
deliveries increased 15.0% to 5,686 homes compared with 4,946 homes
in the previous year. For fiscal 2020, deliveries, including
domestic unconsolidated joint ventures, increased 12.3% to 6,414
homes compared with 5,713 homes during fiscal 2019.
- The contract cancellation rate for
consolidated contracts was 18% for the fourth quarter ended October
31, 2020 compared with 21% in the fiscal 2019 fourth quarter. The
contract cancellation rate for contracts including domestic
unconsolidated joint ventures was 17% for the fourth quarter of
fiscal 2020 compared with 22% in the fourth quarter of the prior
year.
(1)When we refer to “Domestic Unconsolidated
Joint Ventures”, we are excluding results from our single community
unconsolidated joint venture in the Kingdom of Saudi Arabia
(KSA).
LIQUIDITY AND INVENTORY AS OF OCTOBER 31,
2020:
- During the fourth quarter of fiscal
2020, land and land development spending was $229.3 million, an
increase compared with $162.8 million in last year’s fourth
quarter. For the year ended October 31, 2020, land and land
development spending was $624.2 million compared with $562.8
million one year ago.
- Total liquidity at the end of the
fourth quarter of fiscal 2020 was $399.1 million, significantly
above our targeted liquidity range of $170 million to $245
million.
- In the fourth quarter of fiscal
2020, 2,400 lots were put under option or acquired in 28
consolidated communities.
- As of October 31, 2020,
consolidated lots controlled totaled 26,049, which, based on
trailing twelve-month deliveries, equaled a 4.6 years’ supply.
COMMENTS FROM MANAGEMENT:
“We are pleased with our results for the fourth
quarter of fiscal 2020. Our total revenues, gross margin
percentage, adjusted EBITDA and adjusted pretax income exceeded the
guidance that we gave on our third quarter conference call,” stated
Ara K. Hovnanian, Chairman of the Board, President and Chief
Executive Officer. “Demand for new homes remains strong due to
historically low interest rates, a limited supply of existing
homes, favorable demographic trends and strong consumer demand.
Starting in June, we pivoted to increasing home prices, consciously
trading off a slightly lower sales pace for improved margins,” said
Mr. Hovnanian.
“Looking back on the full year results, the $55
million of pretax income for fiscal 2020 was the highest level of
full year profitability we achieved since fiscal 2006. Given our
$1.4 billion consolidated contract backlog, more than 60% ahead of
last year, we expect that fiscal 2021 will be a year when we can
grow our revenues to between $2.5 and $2.7 billion, achieve more
operating efficiencies and further improve our profitability,”
stated Mr. Hovnanian. “We currently control all the lots needed to
meet our growth expectations in fiscal 2021. Furthermore, we
control almost 90% of the lots needed to meet our delivery
objectives for fiscal 2022. After ending the year with $399 million
of liquidity, significantly above our targeted range, our land
acquisition teams remain busy securing additional land parcels to
achieve our home delivery goals for fiscal 2022 and beyond,”
concluded Mr. Hovnanian.
WEBCAST INFORMATION:
Hovnanian Enterprises will webcast its fiscal
2020 fourth quarter financial results conference call at 11:00 a.m.
E.T. on Wednesday, December 9, 2020. The webcast can be accessed
live through the “Investor Relations” section of Hovnanian
Enterprises’ website at http://www.khov.com. For those who are not
available to listen to the live webcast, an archive of the
broadcast will be available under the “Past Events” section of the
Investor Relations page on the Hovnanian website at
http://www.khov.com. The archive will be available for 12
months.
ABOUT HOVNANIAN ENTERPRISES,
INC.:
Hovnanian Enterprises, Inc., founded in 1959 by
Kevork S. Hovnanian, is headquartered in Matawan, New Jersey and,
through its subsidiaries, is one of the nation’s largest
homebuilders with operations in Arizona, California, Delaware,
Florida, Georgia, Illinois, Maryland, New Jersey, Ohio,
Pennsylvania, South Carolina, Texas, Virginia, Washington, D.C. and
West Virginia. The Company’s homes are marketed and sold under the
trade name K. Hovnanian® Homes. Additionally, the Company’s
subsidiaries, as developers of K. Hovnanian’s® Four Seasons
communities, make the Company one of the nation’s largest builders
of active lifestyle communities.
Additional information on Hovnanian Enterprises,
Inc. can be accessed through the “Investor Relations” section of
the Hovnanian Enterprises’ website at http://www.khov.com. To be
added to Hovnanian's investor e-mail list, please send an e-mail to
IR@khov.com or sign up at http://www.khov.com.
NON-GAAP FINANCIAL
MEASURES:
Consolidated earnings before interest
expense and income taxes (“EBIT”) and before depreciation and
amortization (“EBITDA”) and before inventory impairment loss and
land option write-offs and loss (gain) on extinguishment of debt
(“Adjusted EBITDA”) are not U.S. generally accepted accounting
principles (GAAP) financial measures. The most directly comparable
GAAP financial measure is net income (loss). The reconciliation for
historical periods of EBIT, EBITDA and Adjusted EBITDA to net
income (loss) is presented in a table attached to this earnings
release.
Homebuilding gross margin, before cost
of sales interest expense and land charges, and homebuilding gross
margin percentage, before cost of sales interest expense and land
charges, are non-GAAP financial measures. The most directly
comparable GAAP financial measures are homebuilding gross margin
and homebuilding gross margin percentage, respectively. The
reconciliation for historical periods of homebuilding gross margin,
before cost of sales interest expense and land charges, and
homebuilding gross margin percentage, before cost of sales interest
expense and land charges, to homebuilding gross margin and
homebuilding gross margin percentage, respectively, is presented in
a table attached to this earnings release.
Adjusted pretax income,
which is defined as income before income taxes excluding
land-related charges, joint venture write-downs and loss (gain) on
extinguishment of debt is a non-GAAP financial measure. The most
directly comparable GAAP financial measure is income (loss) before
income taxes. The reconciliation for historical periods of adjusted
pretax income to income (loss) before income taxes is presented in
a table attached to this earnings release.
Total liquidity is comprised of $262.5
million of cash and cash equivalents, $11.6 million of restricted
cash required to collateralize letters of credit and $125.0 million
availability under the senior secured revolving credit facility as
of October 31, 2020.
FORWARD-LOOKING STATEMENTS
All statements in this press release
that are not historical facts should be considered as
“Forward-Looking Statements” within the meaning of the “Safe
Harbor” provisions of the Private Securities Litigation Reform Act
of 1995. Such statements involve known and unknown risks,
uncertainties and other factors that may cause actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such
forward-looking statements include but are not limited to
statements related to the Company’s goals and expectations with
respect to its financial results for future financial periods.
Although we believe that our plans, intentions and expectations
reflected in, or suggested by, such forward-looking statements are
reasonable, we can give no assurance that such plans, intentions or
expectations will be achieved. By their nature, forward-looking
statements: (i) speak only as of the date they are made, (ii) are
not guarantees of future performance or results and (iii) are
subject to risks, uncertainties and assumptions that are difficult
to predict or quantify. Therefore, actual results could differ
materially and adversely from those forward-looking statements as a
result of a variety of factors. Such risks, uncertainties and other
factors include, but are not limited to, (1)
the outbreak and spread
of COVID-19 and the measures that
governments, agencies, law enforcement
and/or health authorities
implement to address
it; (2) changes
in general and local economic, industry and business conditions and
impacts of a significant homebuilding downturn;
(3) adverse weather and other
environmental conditions and natural disasters;
(4) the seasonality of the
Company’s business; (5) the
availability and cost of suitable land and improved lots and
sufficient liquidity to invest in such land and lots;
(6) shortages in, and price
fluctuations of, raw materials and labor,
including due to changes in trade policies
and the imposition of tariffs and duties
on homebuilding materials and products and related trade disputes
with, and retaliatory measures
taken by, other countries;
(7) reliance on, and the
performance of, subcontractors;
(8) regional and local economic
factors, including dependency on certain sectors of the economy,
and employment levels affecting home prices and sales activity in
the markets where the Company builds homes;
(9) increases in cancellations of
agreements of sale; (10)
fluctuations in interest rates and the availability of mortgage
financing; (11) changes in tax
laws affecting the after-tax costs of owning a home;
(12) legal claims brought against
us and not resolved in our favor, such as product liability
litigation, warranty claims and claims made by mortgage investors;
(13) levels of competition;
(14) utility shortages and
outages or rate fluctuations;
(15) information technology
failures and data security breaches;
(16) negative publicity;
(17) high leverage and restrictions on the Company’s
operations and activities imposed by the agreements governing the
Company’s outstanding indebtedness; (18) availability and terms of
financing to the Company; (19) the Company’s sources of liquidity;
(20) changes in credit ratings; (21) government regulation,
including regulations concerning development of land, the home
building, sales and customer financing processes, tax laws and the
environment; (22) operations through unconsolidated joint ventures
with third parties; (23) significant influence of the Company’s
controlling stockholders; (24) availability of net operating loss
carryforwards; (25) loss of key management personnel or failure to
attract qualified personnel; and
(26) certain risks, uncertainties
and other factors described in detail in the Company’s Annual
Report on Form 10-K for the fiscal year ended October 31,
2019 and the Company’s Quarterly Reports on Form
10-Q for the quarterly periods during fiscal 2020
and subsequent filings with the Securities and Exchange
Commission. Except as otherwise required by applicable securities
laws, we undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events, changed circumstances or any other
reason.
Hovnanian
Enterprises, Inc. |
October
31, 2020 |
Statements of
consolidated operations |
(In thousands,
except per share data) |
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
|
|
October 31, |
|
October 31, |
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Total
revenues |
$683,358 |
|
|
$713,590 |
|
|
$2,343,901 |
|
|
$2,016,916 |
|
Costs and expenses
(1) |
|
644,060 |
|
|
|
680,116 |
|
|
|
2,318,400 |
|
|
|
2,043,080 |
|
(Loss) gain on
extinguishment of debt |
|
- |
|
|
|
(42,436 |
) |
|
|
13,337 |
|
|
|
(42,436 |
) |
Income from
unconsolidated joint ventures |
|
3,146 |
|
|
|
8,376 |
|
|
|
16,565 |
|
|
|
28,932 |
|
Income (loss)
before income taxes |
|
42,444 |
|
|
|
(586 |
) |
|
|
55,403 |
|
|
|
(39,668 |
) |
Income tax
provision |
|
1,810 |
|
|
|
1,221 |
|
|
|
4,475 |
|
|
|
2,449 |
|
Net income
(loss) |
$40,634 |
|
|
$(1,807 |
) |
|
$50,928 |
|
|
$(42,117 |
) |
|
Per share
data: |
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share |
$5.97 |
|
|
$(0.30 |
) |
|
$7.48 |
|
|
$(7.06 |
) |
|
Weighted average
number of |
|
|
|
|
|
|
|
|
|
common shares
outstanding (2) |
|
6,221 |
|
|
|
5,982 |
|
|
|
6,189 |
|
|
|
5,968 |
|
Assuming
dilution: |
|
|
|
|
|
|
|
|
Net income (loss)
per common share |
$5.54 |
|
|
$(0.30 |
) |
|
$7.03 |
|
|
$(7.06 |
) |
|
Weighted average
number of |
|
|
|
|
|
|
|
|
|
common shares
outstanding (2) |
|
6,699 |
|
|
|
5,982 |
|
|
|
6,584 |
|
|
|
5,968 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
inventory impairment loss and land option write-offs. |
|
(2) For periods
with a net (loss), basic shares are used in accordance with GAAP
rules. |
|
|
Hovnanian
Enterprises, Inc. |
October
31, 2020 |
Reconciliation of
income before income taxes excluding land-related charges, joint
venture write-downs and loss (gain) on extinguishment of debt to
income (loss) before income taxes |
(In
thousands) |
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
|
|
October 31, |
|
October 31, |
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Income (loss)
before income taxes |
$42,444 |
|
|
$(586 |
) |
|
$55,403 |
|
|
$(39,668 |
) |
Inventory
impairment loss and land option write-offs |
|
2,611 |
|
|
|
2,687 |
|
|
|
8,813 |
|
|
|
6,288 |
|
Unconsolidated
joint venture investment write-downs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
854 |
|
Loss (gain) on
extinguishment of debt |
|
- |
|
|
|
42,436 |
|
|
|
(13,337 |
) |
|
|
42,436 |
|
Income before
income taxes excluding land-related charges, joint venture
write-downs and loss (gain) on extinguishment of debt (1) |
$45,055 |
|
|
$44,537 |
|
|
$50,879 |
|
|
$9,910 |
|
|
(1) Income before
income taxes excluding land-related charges, joint venture
write-downs and loss (gain) on extinguishment of debt is a non-GAAP
financial measure. The most directly comparable GAAP financial
measure is income (loss) before income taxes. |
Hovnanian
Enterprises, Inc. |
|
October
31, 2020 |
|
Gross margin |
|
(In
thousands) |
|
|
|
Homebuilding Gross Margin |
|
Homebuilding Gross Margin |
|
|
Three Months Ended |
|
Year Ended |
|
|
October 31, |
|
October 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Sale of homes |
|
$643,516 |
|
|
$692,146 |
|
|
$2,252,029 |
|
|
$1,949,682 |
|
Cost of sales, excluding
interest expense and land charges (1) |
|
|
513,416 |
|
|
|
561,284 |
|
|
|
1,837,332 |
|
|
|
1,596,237 |
|
Homebuilding gross margin,
before cost of sales interest expense and land charges (2) |
|
|
130,100 |
|
|
|
130,862 |
|
|
|
414,697 |
|
|
|
353,445 |
|
Cost of sales interest
expense, excluding land sales interest expense |
|
|
15,707 |
|
|
|
27,556 |
|
|
|
74,174 |
|
|
|
70,520 |
|
Homebuilding gross margin,
after cost of sales interest expense, before land charges (2) |
|
|
114,393 |
|
|
|
103,306 |
|
|
|
340,523 |
|
|
|
282,925 |
|
Land charges |
|
|
2,611 |
|
|
|
2,687 |
|
|
|
8,813 |
|
|
|
6,288 |
|
Homebuilding gross margin |
|
$111,782 |
|
|
$100,619 |
|
|
$331,710 |
|
|
$276,637 |
|
|
|
|
|
|
|
|
|
|
Homebuilding gross margin
percentage |
|
|
17.4 |
% |
|
|
14.5 |
% |
|
|
14.7 |
% |
|
|
14.2 |
% |
Homebuilding gross margin
percentage, before cost of sales interest expense and land charges
(2) |
|
|
20.2 |
% |
|
|
18.9 |
% |
|
|
18.4 |
% |
|
|
18.1 |
% |
Homebuilding gross margin
percentage, after cost of sales interest expense, before land
charges (2) |
|
|
17.8 |
% |
|
|
14.9 |
% |
|
|
15.1 |
% |
|
|
14.5 |
% |
|
|
|
Land Sales Gross Margin |
|
Land Sales Gross Margin |
|
|
Three Months Ended |
|
Year Ended |
|
|
October 31, |
|
October 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Land and lot sales |
|
$16,805 |
|
|
$1,161 |
|
|
$16,905 |
|
|
$9,211 |
|
Land and lot sales cost of
sales, excluding interest and land charges (1) |
|
|
10,993 |
|
|
|
1,150 |
|
|
|
11,154 |
|
|
|
8,540 |
|
Land and lot sales gross
margin, excluding interest and land charges |
|
|
5,812 |
|
|
|
11 |
|
|
|
5,751 |
|
|
|
671 |
|
Land and lot sales
interest |
|
|
84 |
|
|
|
- |
|
|
|
156 |
|
|
|
205 |
|
Land and lot sales gross
margin, including interest and excluding land charges |
|
$5,728 |
|
|
$11 |
|
|
$5,595 |
|
|
$466 |
|
|
|
(1) Does not
include cost associated with walking away from land options or
inventory impairment losses which are recorded as Inventory
impairment loss and land option write-offs in the Consolidated
Statements of Operations. |
|
(2) Homebuilding
gross margin, before cost of sales interest expense and land
charges, and homebuilding gross margin percentage, before cost of
sales interest expense and land charges, are non-GAAP financial
measures. The most directly comparable GAAP financial measures are
homebuilding gross margin and homebuilding gross margin percentage,
respectively. |
Hovnanian
Enterprises, Inc. |
October
31, 2020 |
Reconciliation of
adjusted EBITDA to net income (loss) |
(Dollars in
thousands) |
|
Three Months Ended |
|
Year Ended |
|
October 31, |
|
October 31, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Net income (loss) |
$40,634 |
|
|
$(1,807 |
) |
|
$50,928 |
|
|
$(42,117 |
) |
Income tax provision |
|
1,810 |
|
|
|
1,221 |
|
|
|
4,475 |
|
|
|
2,449 |
|
Interest expense |
|
40,648 |
|
|
|
50,299 |
|
|
|
178,131 |
|
|
|
160,781 |
|
EBIT (1) |
|
83,092 |
|
|
|
49,713 |
|
|
|
233,534 |
|
|
|
121,113 |
|
Depreciation and
amortization |
|
1,407 |
|
|
|
1,230 |
|
|
|
5,304 |
|
|
|
4,172 |
|
EBITDA (2) |
|
84,499 |
|
|
|
50,943 |
|
|
|
238,838 |
|
|
|
125,285 |
|
Inventory impairment loss and
land option write-offs |
|
2,611 |
|
|
|
2,687 |
|
|
|
8,813 |
|
|
|
6,288 |
|
Loss (gain) on extinguishment
of debt |
|
- |
|
|
|
42,436 |
|
|
|
(13,337 |
) |
|
|
42,436 |
|
Adjusted EBITDA (3) |
$87,110 |
|
|
$96,066 |
|
|
$234,314 |
|
|
$174,009 |
|
|
|
|
|
|
|
|
|
Interest incurred |
$41,660 |
|
|
$43,566 |
|
|
$176,457 |
|
|
$165,906 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA to interest
incurred |
|
2.09 |
|
|
|
2.21 |
|
|
|
1.33 |
|
|
|
1.05 |
|
|
(1) EBIT is a
non-GAAP financial measure. The most directly comparable GAAP
financial measure is net income (loss). EBIT represents earnings
before interest expense and income taxes. |
|
(2) EBITDA is a
non-GAAP financial measure. The most directly comparable GAAP
financial measure is net income (loss). EBITDA represents earnings
before interest expense, income taxes, depreciation and
amortization. |
|
(3) Adjusted
EBITDA is a non-GAAP financial measure. The most directly
comparable GAAP financial measure is net income (loss). Adjusted
EBITDA represents earnings before interest expense, income taxes,
depreciation, amortization, inventory impairment loss and land
option write-offs and loss (gain) on extinguishment of debt. |
|
|
Hovnanian
Enterprises, Inc. |
October
31, 2020 |
Interest
incurred, expensed and capitalized |
(In
thousands) |
|
Three Months Ended |
|
Year Ended |
|
October 31, |
|
October 31, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Interest capitalized at
beginning of period |
$63,998 |
|
|
$77,997 |
|
|
$71,264 |
|
|
$68,117 |
|
Plus interest incurred |
|
41,660 |
|
|
|
43,566 |
|
|
|
176,457 |
|
|
|
165,906 |
|
Less interest expensed |
|
40,648 |
|
|
|
50,299 |
|
|
|
178,131 |
|
|
|
160,781 |
|
Less interest contributed to
unconsolidated joint venture (1) |
|
- |
|
|
|
- |
|
|
|
4,580 |
|
|
|
1,978 |
|
Interest capitalized at end of
period (2) |
$65,010 |
|
|
$71,264 |
|
|
$65,010 |
|
|
$71,264 |
|
|
(1) Represents
capitalized interest which was included as part of the assets
contributed to the joint ventures the Company entered into in
December 2019 and June 2019 during the years ended October 31, 2020
and 2019, respectively. There was no impact to the Consolidated
Statement of Operations as a result of these transactions. |
|
(2) Capitalized
interest amounts are shown gross before allocating any portion of
impairments to capitalized interest. |
HOVNANIAN ENTERPRISES, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In Thousands)
|
October 31, |
|
|
October 31, |
|
(In
thousands) |
2020 |
|
|
2019 |
|
ASSETS |
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
Cash and cash equivalents |
$262,489 |
|
|
|
$130,976 |
|
Restricted cash and cash equivalents |
14,731 |
|
|
|
20,905 |
|
Inventories: |
|
|
|
|
|
|
Sold and unsold homes and lots under development |
921,594 |
|
|
|
993,647 |
|
Land and land options held for future development or sale |
91,957 |
|
|
|
108,565 |
|
Consolidated inventory not owned |
182,224 |
|
|
|
190,273 |
|
Total inventories |
1,195,775 |
|
|
|
1,292,485 |
|
Investments in and advances to unconsolidated joint ventures |
103,164 |
|
|
|
127,038 |
|
Receivables, deposits and notes, net |
33,686 |
|
|
|
44,914 |
|
Property, plant and equipment, net |
18,185 |
|
|
|
20,127 |
|
Prepaid expenses and other assets |
58,705 |
|
|
|
45,704 |
|
Total homebuilding |
1,686,735 |
|
|
|
1,682,149 |
|
|
|
|
|
|
|
|
Financial services |
140,607 |
|
|
|
199,275 |
|
Total assets |
$1,827,342 |
|
|
|
$1,881,424 |
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
Nonrecourse mortgages secured by inventory, net of debt issuance
costs |
$135,122 |
|
|
$203,585 |
|
Accounts payable and other liabilities |
359,274 |
|
|
|
320,193 |
|
Customers’ deposits |
48,286 |
|
|
|
35,872 |
|
Liabilities from inventory not owned, net of debt issuance
costs |
131,204 |
|
|
|
141,033 |
|
Senior notes and credit facilities (net of discount, premium and
debt issuance costs) |
1,431,110 |
|
|
|
1,479,990 |
|
Accrued interest |
35,563 |
|
|
|
19,081 |
|
Total homebuilding |
2,140,559 |
|
|
|
2,199,754 |
|
|
|
|
|
|
|
|
Financial services |
119,045 |
|
|
|
169,145 |
|
Income taxes payable |
3,832 |
|
|
|
2,301 |
|
Total liabilities |
2,263,436 |
|
|
|
2,371,200 |
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
Hovnanian Enterprises, Inc.
stockholders' equity deficit: |
|
|
|
|
|
|
Preferred stock, $0.01 par value - authorized 100,000 shares;
issued and outstanding 5,600 shares with a liquidation preference
of $140,000 at October 31, 2020 and 2019 |
135,299 |
|
|
|
135,299 |
|
Common stock, Class A, $0.01 par value - authorized 16,000,000
shares; issued 5,990,310 shares at October 31, 2020 and 5,973,727
shares at October 31, 2019 |
60 |
|
|
|
60 |
|
Common stock, Class B, $0.01 par value (convertible to Class A at
time of sale) - authorized 2,400,000 shares; issued 649,886 shares
at October 31, 2020 and 650,363 shares at October 31, 2019 |
7 |
|
|
|
7 |
|
Paid in capital - common stock |
718,110 |
|
|
|
715,504 |
|
Accumulated deficit |
(1,175,045 |
) |
|
|
(1,225,973 |
) |
Treasury stock - at cost – 470,430 shares of Class A common stock
and 27,669 shares of Class B common stock at October 31, 2020 and
2019 |
(115,360 |
) |
|
|
(115,360 |
) |
Total Hovnanian Enterprises, Inc. stockholders’ equity deficit |
(436,929 |
) |
|
|
(490,463 |
) |
Noncontrolling interest in consolidated joint ventures |
835 |
|
|
|
687 |
|
Total equity deficit |
(436,094 |
) |
|
|
(489,776 |
) |
Total liabilities and equity |
$1,827,342 |
|
|
|
$1,881,424 |
|
HOVNANIAN ENTERPRISES, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(In Thousands
Except Per Share Data)(Unaudited)
|
Three Months Ended October 31, |
|
|
Year Ended October 31, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale of homes |
$643,516 |
|
|
|
$692,146 |
|
|
|
$2,252,029 |
|
|
|
$1,949,682 |
|
Land sales and other revenues |
|
17,350 |
|
|
|
|
1,971 |
|
|
|
|
19,710 |
|
|
|
|
13,082 |
|
Total homebuilding |
|
660,866 |
|
|
|
|
694,117 |
|
|
|
|
2,271,739 |
|
|
|
|
1,962,764 |
|
Financial services |
|
22,492 |
|
|
|
|
19,473 |
|
|
|
|
72,162 |
|
|
|
|
54,152 |
|
Total revenues |
|
683,358 |
|
|
|
|
713,590 |
|
|
|
|
2,343,901 |
|
|
|
|
2,016,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales, excluding interest |
|
524,409 |
|
|
|
|
562,434 |
|
|
|
|
1,848,486 |
|
|
|
|
1,604,777 |
|
Cost of sales interest |
|
15,791 |
|
|
|
|
27,556 |
|
|
|
|
74,330 |
|
|
|
|
70,725 |
|
Inventory impairment loss and land option write-offs |
|
2,611 |
|
|
|
|
2,687 |
|
|
|
|
8,813 |
|
|
|
|
6,288 |
|
Total cost of sales |
|
542,811 |
|
|
|
|
592,677 |
|
|
|
|
1,931,629 |
|
|
|
|
1,681,790 |
|
Selling, general and administrative |
|
39,374 |
|
|
|
|
36,310 |
|
|
|
|
161,261 |
|
|
|
|
166,784 |
|
Total homebuilding expenses |
|
582,185 |
|
|
|
|
628,987 |
|
|
|
|
2,092,890 |
|
|
|
|
1,848,574 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial services |
|
10,383 |
|
|
|
|
10,446 |
|
|
|
|
40,060 |
|
|
|
|
36,525 |
|
Corporate general and administrative |
|
26,213 |
|
|
|
|
17,572 |
|
|
|
|
80,553 |
|
|
|
|
66,364 |
|
Other interest |
|
24,857 |
|
|
|
|
22,743 |
|
|
|
|
103,801 |
|
|
|
|
90,056 |
|
Other operations |
|
422 |
|
|
|
|
368 |
|
|
|
|
1,096 |
|
|
|
|
1,561 |
|
Total expenses |
|
644,060 |
|
|
|
|
680,116 |
|
|
|
|
2,318,400 |
|
|
|
|
2,043,080 |
|
(Loss) gain on extinguishment
of debt |
|
- |
|
|
|
|
(42,436 |
) |
|
|
|
13,337 |
|
|
|
|
(42,436 |
) |
Income from unconsolidated
joint ventures |
|
3,146 |
|
|
|
|
8,376 |
|
|
|
|
16,565 |
|
|
|
|
28,932 |
|
Income (loss) before income
taxes |
|
42,444 |
|
|
|
|
(586 |
) |
|
|
|
55,403 |
|
|
|
|
(39,668 |
) |
State and federal income tax
provision: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State |
|
1,810 |
|
|
|
|
1,221 |
|
|
|
|
4,475 |
|
|
|
|
2,449 |
|
Federal |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
Total income taxes |
|
1,810 |
|
|
|
|
1,221 |
|
|
|
|
4,475 |
|
|
|
|
2,449 |
|
Net income (loss) |
$40,634 |
|
|
|
$(1,807 |
) |
|
|
$50,928 |
|
|
|
$(42,117 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share |
$5.97 |
|
|
|
$(0.30 |
) |
|
|
$7.48 |
|
|
|
$(7.06 |
) |
Weighted-average number of common shares outstanding |
|
6,221 |
|
|
|
|
5,982 |
|
|
|
|
6,189 |
|
|
|
|
5,968 |
|
Assuming dilution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share |
$5.54 |
|
|
|
$(0.30 |
) |
|
|
$7.03 |
|
|
|
$(7.06 |
) |
Weighted-average number of common shares outstanding |
|
6,699 |
|
|
|
|
5,982 |
|
|
|
|
6,584 |
|
|
|
|
5,968 |
|
HOVNANIAN ENTERPRISES, INC. |
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT DATA EXCLUDES
UNCONSOLIDATED JOINT VENTURES) |
(UNAUDITED) |
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Three Months Ended |
Three Months Ended |
Backlog |
|
|
October 31, |
October 31, |
October 31, |
|
|
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(NJ, PA) |
Home |
|
95 |
|
72 |
31.9% |
|
|
78 |
|
112 |
(30.4)% |
|
|
130 |
|
152 |
(14.5)% |
|
|
Dollars |
$63,326 |
$37,860 |
67.3% |
|
$42,218 |
$70,650 |
(40.2)% |
|
$82,111 |
$86,557 |
(5.1)% |
|
|
Avg. Price |
$666,589 |
$525,833 |
26.8% |
|
$541,256 |
$630,804 |
(14.2)% |
|
$631,623 |
$569,454 |
10.9% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(DE, MD, VA,
WV) |
Home |
|
253 |
|
181 |
39.8% |
|
|
219 |
|
240 |
(8.8)% |
|
|
557 |
|
343 |
62.4% |
|
|
Dollars |
$135,364 |
$86,296 |
56.9% |
|
$114,221 |
$135,866 |
(15.9)% |
|
$291,115 |
$193,387 |
50.5% |
|
|
Avg. Price |
$535,036 |
$476,773 |
12.2% |
|
$521,557 |
$566,108 |
(7.9)% |
|
$522,648 |
$563,810 |
(7.3)% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(IL, OH) |
Home |
|
249 |
|
177 |
40.7% |
|
|
187 |
|
232 |
(19.4)% |
|
|
596 |
|
450 |
32.4% |
|
|
Dollars |
$79,999 |
$54,682 |
46.3% |
|
$59,498 |
$68,714 |
(13.4)% |
|
$169,517 |
$122,681 |
38.2% |
|
|
Avg. Price |
$321,281 |
$308,938 |
4.0% |
|
$318,171 |
$296,181 |
7.4% |
|
$284,424 |
$272,624 |
4.3% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(FL, GA,
SC) |
Home |
|
163 |
|
179 |
(8.9)% |
|
|
169 |
|
193 |
(12.4)% |
|
|
298 |
|
282 |
5.7% |
|
|
Dollars |
$74,765 |
$69,765 |
7.2% |
|
$73,741 |
$76,414 |
(3.5)% |
|
$146,971 |
$121,921 |
20.5% |
|
|
Avg. Price |
$458,681 |
$389,749 |
17.7% |
|
$436,337 |
$395,927 |
10.2% |
|
$493,191 |
$432,344 |
14.1% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(AZ, TX) |
Home |
|
712 |
|
496 |
43.5% |
|
|
584 |
|
621 |
(6.0)% |
|
|
1,066 |
|
663 |
60.8% |
|
|
Dollars |
$245,813 |
$166,723 |
47.4% |
|
$194,505 |
$213,089 |
(8.7)% |
|
$360,225 |
$230,898 |
56.0% |
|
|
Avg. Price |
$345,243 |
$336,135 |
2.7% |
|
$333,057 |
$343,138 |
(2.9)% |
|
$337,922 |
$348,261 |
(3.0)% |
|
West |
|
|
|
|
|
|
|
|
|
|
(CA) |
Home |
|
446 |
|
240 |
85.8% |
|
|
335 |
|
311 |
7.7% |
|
|
755 |
|
301 |
150.8% |
|
|
Dollars |
$229,656 |
$102,460 |
124.1% |
|
$159,332 |
$127,413 |
25.1% |
|
$369,887 |
$124,700 |
196.6% |
|
|
Avg. Price |
$514,924 |
$426,917 |
20.6% |
|
$475,618 |
$409,688 |
16.1% |
|
$489,917 |
$414,286 |
18.3% |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Total |
Home |
|
1,918 |
|
1,345 |
42.6% |
|
|
1,572 |
|
1,709 |
(8.0)% |
|
|
3,402 |
|
2,191 |
55.3% |
|
|
Dollars |
$828,923 |
$517,786 |
60.1% |
|
$643,515 |
$692,146 |
(7.0)% |
|
$1,419,826 |
$880,144 |
61.3% |
|
|
Avg. Price |
$432,181 |
$384,971 |
12.3% |
|
$409,361 |
$405,001 |
1.1% |
|
$417,350 |
$401,709 |
3.9% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
225 |
|
134 |
67.9% |
|
|
163 |
|
232 |
(29.7)% |
|
|
326 |
|
259 |
25.9% |
|
|
Dollars |
$135,906 |
$80,126 |
69.6% |
|
$102,043 |
$145,098 |
(29.7)% |
|
$184,524 |
$161,807 |
14.0% |
|
|
Avg.
Price |
$604,027 |
$597,955 |
1.0% |
|
$626,031 |
$625,422 |
0.1% |
|
$566,025 |
$624,737 |
(9.4)% |
|
Grand Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
2,143 |
|
1,479 |
44.9% |
|
|
1,735 |
|
1,941 |
(10.6)% |
|
|
3,728 |
|
2,450 |
52.2% |
|
|
Dollars |
$964,829 |
$597,912 |
61.4% |
|
$745,558 |
$837,244 |
(11.0)% |
|
$1,604,350 |
$1,041,951 |
54.0% |
|
|
Avg. Price |
$450,224 |
$404,268 |
11.4% |
|
$429,716 |
$431,347 |
(0.4)% |
|
$430,351 |
$425,286 |
1.2% |
|
|
|
|
|
|
|
|
|
|
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
326 |
|
71 |
359.2% |
|
|
0 |
|
0 |
0.0% |
|
|
1,092 |
|
202 |
440.6% |
|
|
Dollars |
$51,110 |
$11,517 |
343.8% |
|
$0 |
$0 |
0.0% |
|
$171,673 |
$32,316 |
431.2% |
|
|
Avg. Price |
$156,779 |
$162,211 |
(3.3)% |
|
$0 |
$0 |
0.0% |
|
$157,209 |
$159,982 |
(1.7)% |
|
|
DELIVERIES INCLUDE EXTRAS |
Notes: |
(1) Contracts are defined as new contracts signed during the period
for the purchase of homes, less cancellations of prior
contracts. |
(2) Represents home deliveries, home revenues and average prices
for our unconsolidated homebuilding joint ventures for the period.
We provide this data as a supplement to our consolidated results as
an indicator of the volume managed in our unconsolidated
homebuilding joint ventures. Our proportionate share of the income
or loss of unconsolidated homebuilding and land development joint
ventures is reflected as a separate line item in our consolidated
financial statements under “Income from unconsolidated joint
ventures”. |
HOVNANIAN ENTERPRISES, INC. |
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT DATA EXCLUDES
UNCONSOLIDATED JOINT VENTURES) |
(UNAUDITED) |
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Year Ended |
Year Ended |
Backlog |
|
|
October 31, |
October 31, |
October 31, |
|
|
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(NJ, PA) |
Home |
|
326 |
|
293 |
11.3% |
|
|
348 |
|
192 |
81.3% |
|
|
130 |
|
152 |
(14.5)% |
|
|
Dollars |
$171,181 |
$172,950 |
(1.0)% |
|
$175,627 |
$116,889 |
50.3% |
|
$82,111 |
$86,557 |
(5.1)% |
|
|
Avg. Price |
$525,095 |
$590,273 |
(11.0)% |
|
$504,675 |
$608,797 |
(17.1)% |
|
$631,623 |
$569,454 |
10.9% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(DE, MD, VA,
WV) |
Home |
|
990 |
|
728 |
36.0% |
|
|
755 |
|
652 |
15.8% |
|
|
557 |
|
343 |
62.4% |
|
|
Dollars |
$510,229 |
$385,862 |
32.2% |
|
$402,647 |
$356,674 |
12.9% |
|
$291,115 |
$193,387 |
50.5% |
|
|
Avg. Price |
$515,383 |
$530,030 |
(2.8)% |
|
$533,307 |
$547,046 |
(2.5)% |
|
$522,648 |
$563,810 |
(7.3)% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(IL, OH) |
Home |
|
873 |
|
736 |
18.6% |
|
|
727 |
|
680 |
6.9% |
|
|
596 |
|
450 |
32.4% |
|
|
Dollars |
$272,170 |
$219,266 |
24.1% |
|
$225,334 |
$203,734 |
10.6% |
|
$169,517 |
$122,681 |
38.2% |
|
|
Avg. Price |
$311,764 |
$297,916 |
4.6% |
|
$309,950 |
$299,609 |
3.5% |
|
$284,424 |
$272,624 |
4.3% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(FL, GA,
SC) |
Home |
|
599 |
|
576 |
4.0% |
|
|
548 |
|
545 |
0.6% |
|
|
298 |
|
282 |
5.7% |
|
|
Dollars |
$270,277 |
$233,645 |
15.7% |
|
$232,333 |
$219,860 |
5.7% |
|
$146,971 |
$121,921 |
20.5% |
|
|
Avg. Price |
$451,214 |
$405,634 |
11.2% |
|
$423,965 |
$403,413 |
5.1% |
|
$493,191 |
$432,344 |
14.1% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(AZ, TX) |
Home |
|
2,636 |
|
2,006 |
31.4% |
|
|
2,233 |
|
1,866 |
19.7% |
|
|
1,066 |
|
663 |
60.8% |
|
|
Dollars |
$872,630 |
$677,244 |
28.9% |
|
$743,301 |
$627,201 |
18.5% |
|
$360,225 |
$230,898 |
56.0% |
|
|
Avg. Price |
$331,043 |
$337,609 |
(1.9)% |
|
$332,871 |
$336,121 |
(1.0)% |
|
$337,922 |
$348,261 |
(3.0)% |
|
West |
|
|
|
|
|
|
|
|
|
|
(CA) |
Home |
|
1,529 |
|
1,001 |
52.7% |
|
|
1,075 |
|
1,011 |
6.3% |
|
|
755 |
|
301 |
150.8% |
|
|
Dollars |
$717,973 |
$411,577 |
74.4% |
|
$472,786 |
$425,324 |
11.2% |
|
$369,887 |
$124,700 |
196.6% |
|
|
Avg. Price |
$469,570 |
$411,166 |
14.2% |
|
$439,801 |
$420,696 |
4.5% |
|
$489,917 |
$414,286 |
18.3% |
|
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
6,953 |
|
5,340 |
30.2% |
|
|
5,686 |
|
4,946 |
15.0% |
|
|
3,402 |
|
2,191 |
55.3% |
|
|
Dollars |
$2,814,460 |
$2,100,544 |
34.0% |
|
$2,252,028 |
$1,949,682 |
15.5% |
|
$1,419,826 |
$880,144 |
61.3% |
|
|
Avg. Price |
$404,784 |
$393,360 |
2.9% |
|
$396,065 |
$394,194 |
0.5% |
|
$417,350 |
$401,709 |
3.9% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
739 |
|
636 |
16.2% |
|
|
728 |
|
767 |
(5.1)% |
|
|
326 |
|
259 |
25.9% |
|
|
Dollars |
$432,570 |
$398,476 |
8.6% |
|
$432,602 |
$483,697 |
(10.6)% |
|
$184,524 |
$161,807 |
14.0% |
|
|
Avg. Price |
$585,345 |
$626,535 |
(6.6)% |
|
$594,234 |
$630,635 |
(5.8)% |
|
$566,025 |
$624,737 |
(9.4)% |
|
Grand Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
7,692 |
|
5,976 |
28.7% |
|
|
6,414 |
|
5,713 |
12.3% |
|
|
3,728 |
|
2,450 |
52.2% |
|
|
Dollars |
$3,247,030 |
$2,499,020 |
29.9% |
|
$2,684,630 |
$2,433,379 |
10.3% |
|
$1,604,350 |
$1,041,951 |
54.0% |
|
|
Avg. Price |
$422,131 |
$418,176 |
0.9% |
|
$418,558 |
$425,937 |
(1.7)% |
|
$430,351 |
$425,286 |
1.2% |
|
|
|
|
|
|
|
|
|
|
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
890 |
|
204 |
336.3% |
|
|
0 |
|
7 |
(100.0)% |
|
|
1,092 |
|
202 |
440.6% |
|
|
Dollars |
$139,356 |
$32,943 |
323.0% |
|
$0 |
$1,627 |
(100.0)% |
|
$171,673 |
$32,316 |
431.2% |
|
|
Avg. Price |
$156,580 |
$161,485 |
(3.0)% |
|
$0 |
$232,429 |
(100.0)% |
|
$157,210 |
$159,982 |
(1.7)% |
|
|
|
|
|
|
|
|
|
|
|
|
DELIVERIES INCLUDE EXTRAS |
Notes: |
(1) Contracts are defined as new contracts signed during the period
for the purchase of homes, less cancellations of prior
contracts. |
(2) Represents home deliveries, home revenues and average prices
for our unconsolidated homebuilding joint ventures for the period.
We provide this data as a supplement to our consolidated results as
an indicator of the volume managed in our unconsolidated
homebuilding joint ventures. Our proportionate share of the income
or loss of unconsolidated homebuilding and land development joint
ventures is reflected as a separate line item in our consolidated
financial statements under “Income from unconsolidated joint
ventures”. |
HOVNANIAN ENTERPRISES, INC. |
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT DATA UNCONSOLIDATED JOINT VENTURES
ONLY) |
(UNAUDITED) |
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Three Months Ended |
Three Months Ended |
Backlog |
|
|
October 31, |
October 31, |
October 31, |
|
|
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
16 |
|
47 |
(66.0)% |
|
|
31 |
|
82 |
(62.2)% |
|
|
18 |
|
76 |
(76.3)% |
|
(excluding KSA JV) |
Dollars |
$24,384 |
$33,054 |
(26.2)% |
|
$31,421 |
$62,284 |
(49.6)% |
|
$24,535 |
$63,680 |
(61.5)% |
|
(NJ, PA) |
Avg. Price |
$1,524,000 |
$703,277 |
116.7% |
|
$1,013,581 |
$759,561 |
33.4% |
|
$1,363,056 |
$837,895 |
62.7% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
63 |
|
11 |
472.7% |
|
|
21 |
|
26 |
(19.2)% |
|
|
90 |
|
21 |
328.6% |
|
(DE, MD, VA,
WV) |
Dollars |
$33,382 |
$5,862 |
469.5% |
|
$10,378 |
$15,816 |
(34.4)% |
|
$46,821 |
$11,121 |
321.0% |
|
|
Avg. Price |
$529,873 |
$532,909 |
(0.6)% |
|
$494,190 |
$608,308 |
(18.8)% |
|
$520,233 |
$529,571 |
(1.8)% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
2 |
|
4 |
(50.0)% |
|
|
2 |
|
3 |
(33.3)% |
|
|
0 |
|
3 |
(100.0)% |
|
(IL, OH) |
Dollars |
$950 |
$1,800 |
(47.2)% |
|
$950 |
$1,400 |
(32.1)% |
|
$0 |
$1,285 |
(100.0)% |
|
|
Avg. Price |
$475,000 |
$450,000 |
5.6% |
|
$475,000 |
$466,667 |
1.8% |
|
$0 |
$428,333 |
(100.0)% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
89 |
|
31 |
187.1% |
|
|
69 |
|
60 |
15.0% |
|
|
149 |
|
88 |
69.3% |
|
(FL, GA,
SC) |
Dollars |
$49,970 |
$16,611 |
200.8% |
|
$36,307 |
$33,080 |
9.8% |
|
$78,528 |
$47,678 |
64.7% |
|
|
Avg. Price |
$561,461 |
$535,839 |
4.8% |
|
$526,188 |
$551,333 |
(4.6)% |
|
$527,034 |
$541,795 |
(2.7)% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
30 |
|
30 |
0.0% |
|
|
30 |
|
40 |
(25.0)% |
|
|
46 |
|
45 |
2.2% |
|
(AZ, TX) |
Dollars |
$18,553 |
$18,347 |
1.1% |
|
$19,509 |
$24,793 |
(21.3)% |
|
$26,803 |
$28,318 |
(5.3)% |
|
|
Avg. Price |
$618,433 |
$611,567 |
1.1% |
|
$650,300 |
$619,825 |
4.9% |
|
$582,674 |
$629,289 |
(7.4)% |
|
West |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
25 |
|
11 |
127.3% |
|
|
10 |
|
21 |
(52.4)% |
|
|
23 |
|
26 |
(11.5)% |
|
(CA) |
Dollars |
$8,667 |
$4,452 |
94.7% |
|
$3,478 |
$7,725 |
(55.0)% |
|
$7,837 |
$9,725 |
(19.4)% |
|
|
Avg. Price |
$346,680 |
$404,727 |
(14.3)% |
|
$347,800 |
$367,857 |
(5.5)% |
|
$340,739 |
$374,038 |
(8.9)% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
225 |
|
134 |
67.9% |
|
|
163 |
|
232 |
(29.7)% |
|
|
326 |
|
259 |
25.9% |
|
|
Dollars |
$135,906 |
$80,126 |
69.6% |
|
$102,043 |
$145,098 |
(29.7)% |
|
$184,524 |
$161,807 |
14.0% |
|
|
Avg. Price |
$604,027 |
$597,955 |
1.0% |
|
$626,031 |
$625,422 |
0.1% |
|
$566,025 |
$624,737 |
(9.4)% |
|
|
|
|
|
|
|
|
|
|
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
326 |
|
71 |
359.2% |
|
|
0 |
|
0 |
0.0% |
|
|
1,092 |
|
202 |
440.6% |
|
|
Dollars |
$51,110 |
$11,517 |
343.8% |
|
$0 |
$0 |
0.0% |
|
$171,673 |
$32,316 |
431.2% |
|
|
Avg. Price |
$156,779 |
$162,211 |
(3.3)% |
|
$0 |
$0 |
0.0% |
|
$157,210 |
$159,982 |
(1.7)% |
|
|
DELIVERIES INCLUDE EXTRAS |
Notes: |
(1) Contracts are defined as new contracts signed during the period
for the purchase of homes, less cancellations of prior
contracts. |
(2) Represents home deliveries, home revenues and average prices
for our unconsolidated homebuilding joint ventures for the period.
We provide this data as a supplement to our consolidated results as
an indicator of the volume managed in our unconsolidated
homebuilding joint ventures. Our proportionate share of the income
or loss of unconsolidated homebuilding and land development joint
ventures is reflected as a separate line item in our consolidated
financial statements under “Income from unconsolidated joint
ventures”. |
HOVNANIAN ENTERPRISES, INC. |
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT DATA UNCONSOLIDATED JOINT VENTURES
ONLY) |
(UNAUDITED) |
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Year Ended |
Year Ended |
Backlog |
|
|
October 31, |
October 31, |
October 31, |
|
|
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
146 |
|
235 |
(37.9)% |
|
|
204 |
|
273 |
(25.3)% |
|
|
18 |
|
76 |
(76.3)% |
|
(excluding KSA
JV) |
Dollars |
$128,526 |
$183,450 |
(29.9)% |
|
$167,671 |
$213,137 |
(21.3)% |
|
$24,535 |
$63,680 |
(61.5)% |
|
(NJ, PA) |
Avg. Price |
$880,315 |
$780,638 |
12.8% |
|
$821,917 |
$780,722 |
5.3% |
|
$1,363,056 |
$837,895 |
62.7% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
133 |
|
37 |
259.5% |
|
|
85 |
|
69 |
23.2% |
|
|
90 |
|
21 |
328.6% |
|
(DE, MD, VA,
WV) |
Dollars |
$68,605 |
$25,020 |
174.2% |
|
$42,759 |
$49,083 |
(12.9)% |
|
$46,821 |
$11,121 |
321.0% |
|
|
Avg. Price |
$515,827 |
$676,216 |
(23.7)% |
|
$503,047 |
$711,348 |
(29.3)% |
|
$520,233 |
$529,571 |
(1.8)% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
13 |
|
16 |
(18.8)% |
|
|
16 |
|
22 |
(27.3)% |
|
|
0 |
|
3 |
(100.0)% |
|
(IL, OH) |
Dollars |
$6,059 |
$8,272 |
(26.8)% |
|
$7,344 |
$13,063 |
(43.8)% |
|
$0 |
$1,285 |
(100.0)% |
|
|
Avg. Price |
$466,077 |
$517,000 |
(9.8)% |
|
$459,000 |
$593,773 |
(22.7)% |
|
$0 |
$428,333 |
(100.0)% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
274 |
|
153 |
79.1% |
|
|
248 |
|
187 |
32.6% |
|
|
149 |
|
88 |
69.3% |
|
(FL, GA,
SC) |
Dollars |
$140,517 |
$82,141 |
71.1% |
|
$122,562 |
$97,718 |
25.4% |
|
$78,528 |
$47,678 |
64.7% |
|
|
Avg. Price |
$512,836 |
$536,869 |
(4.5)% |
|
$494,202 |
$522,556 |
(5.4)% |
|
$527,034 |
$541,795 |
(2.7)% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
106 |
|
116 |
(8.6)% |
|
|
105 |
|
138 |
(23.9)% |
|
|
46 |
|
45 |
2.2% |
|
(AZ, TX) |
Dollars |
$65,700 |
$70,802 |
(7.2)% |
|
$67,215 |
$82,948 |
(19.0)% |
|
$26,803 |
$28,318 |
(5.3)% |
|
|
Avg. Price |
$619,811 |
$610,362 |
1.5% |
|
$640,143 |
$601,072 |
6.5% |
|
$582,674 |
$629,289 |
(7.4)% |
|
West |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
67 |
|
79 |
(15.2)% |
|
|
70 |
|
78 |
(10.3)% |
|
|
23 |
|
26 |
(11.5)% |
|
(CA) |
Dollars |
$23,163 |
$28,791 |
(19.5)% |
|
$25,051 |
$27,748 |
(9.7)% |
|
$7,837 |
$9,725 |
(19.4)% |
|
|
Avg. Price |
$345,716 |
$364,443 |
(5.1)% |
|
$357,871 |
$355,744 |
0.6% |
|
$340,739 |
$374,038 |
(8.9)% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
739 |
|
636 |
16.2% |
|
|
728 |
|
767 |
(5.1)% |
|
|
326 |
|
259 |
25.9% |
|
|
Dollars |
$432,570 |
$398,476 |
8.6% |
|
$432,602 |
$483,697 |
(10.6)% |
|
$184,524 |
$161,807 |
14.0% |
|
|
Avg. Price |
$585,345 |
$626,535 |
(6.6)% |
|
$594,234 |
$630,635 |
(5.8)% |
|
$566,025 |
$624,737 |
(9.4)% |
|
|
|
|
|
|
|
|
|
|
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
890 |
|
204 |
336.3% |
|
|
0 |
|
7 |
(100.0)% |
|
|
1,092 |
|
202 |
440.6% |
|
|
Dollars |
$139,356 |
$32,943 |
323.0% |
|
$0 |
$1,627 |
(100.0)% |
|
$171,673 |
$32,316 |
431.2% |
|
|
Avg. Price |
$156,580 |
$161,485 |
(3.0)% |
|
$0 |
$232,429 |
(100.0)% |
|
$157,210 |
$159,982 |
(1.7)% |
|
|
|
|
|
|
|
|
|
|
|
|
DELIVERIES INCLUDE EXTRAS |
Notes: |
(1) Contracts are defined as new contracts signed during the period
for the purchase of homes, less cancellations of prior
contracts. |
(2) Represents home deliveries, home revenues and average prices
for our unconsolidated homebuilding joint ventures for the period.
We provide this data as a supplement to our consolidated results as
an indicator of the volume managed in our unconsolidated
homebuilding joint ventures. Our proportionate share of the income
or loss of unconsolidated homebuilding and land development joint
ventures is reflected as a separate line item in our consolidated
financial statements under “Income from unconsolidated joint
ventures”. |
|
|
|
Contact: |
J. Larry Sorsby |
Jeffrey T. O’Keefe |
|
Executive Vice President & CFO |
Vice President, Investor Relations |
|
732-747-7800 |
732-747-7800 |
|
|
|
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