Gross Margin Percentage Increased
Significantly Year Over YearContracts per
Community Improved Year Over Year for 13th Consecutive
QuarterConsolidated Lots Controlled Grew 20%
Year-over-Year and 17% Sequentially
Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national
homebuilder, reported results for its fiscal third quarter and nine
months ended July 31, 2018.
“We are pleased to report another quarter with
year-over-year improvements in contracts per community, a
significant increase in gross margin percentage and increases in
pretax profits for our third quarter of fiscal 2018,” stated Ara K.
Hovnanian, Chairman of the Board, President and Chief Executive
Officer. “Our total consolidated lots controlled at the end of the
third quarter expanded 20% year over year and 17% sequentially. As
we move forward, we remain laser focused on further growing our
land position, which should ultimately lead to increases in our
community count.”
“Assuming no adverse changes in current market
conditions, we continue to expect solid profitability during the
fourth quarter of fiscal 2018. Similar to what we have experienced
in past cycles, our planned community count growth should lead to
improved operating results and sustainable levels of
profitability,” concluded Mr. Hovnanian.
RESULTS FOR THE THREE-MONTH AND
NINE-MONTH PERIODS ENDED JULY 31, 2018:
- Total revenues decreased to $456.7 million in the third quarter
of fiscal 2018, compared with $592.0 million in the third quarter
of fiscal 2017. For the nine months ended July 31, 2018, total
revenues decreased to $1.38 billion compared with $1.73 billion in
the first nine months of the prior year.
- While total revenues decreased $135.3 million, homebuilding
revenues for unconsolidated joint ventures increased $131.9 million
to $194.5 million for the third quarter ended July 31, 2018,
compared with $62.6 million in last year’s third quarter. During
the first nine months of fiscal 2018, homebuilding revenues for
unconsolidated joint ventures increased to $350.0 million compared
with $214.1 million in the same period of the previous
year.
- Homebuilding gross margin percentage, after cost of sales
interest expense and land charges, was 15.4% for the third quarter
of fiscal 2018 compared with 12.8% in the prior year’s third
quarter. For the nine months ended July 31, 2018, homebuilding
gross margin percentage, after cost of sales interest expense and
land charges, improved to 14.6% compared with 12.9% in the first
nine months of last year.
- Homebuilding gross margin percentage, before cost of sales
interest expense and land charges, improved 160 basis points to
18.4% for the third quarter of fiscal 2018 compared with 16.8% in
the same quarter one year ago. During the first nine months of
fiscal 2018, homebuilding gross margin percentage, before cost of
sales interest expense and land charges, improved 120 basis points
to 18.0% compared with 16.8% in the same period of the previous
year.
- For the third quarter of 2018, total SG&A decreased by $7.3
million, or 11.9%, year over year. Total SG&A was $53.9
million, or 11.8% of total revenues, in the third quarter of fiscal
2018 compared with $61.2 million, or 10.3% of total revenues, in
the third quarter of fiscal 2017. For the nine months ended July
31, 2018, total SG&A decreased by $4.8 million, or 2.6%, year
over year. For the first nine months of fiscal 2018, total SG&A
was $178.0 million, or 12.9% of total revenues, compared with
$182.8 million, or 10.6% of total revenues, in the first nine
months of the prior fiscal year.
- Interest incurred (some of which was expensed and some of which
was capitalized) was $40.4 million for the third quarter of fiscal
2018 compared with $39.1 million in the same quarter one year ago.
For the nine months ended July 31, 2018, interest incurred (some of
which was expensed and some of which was capitalized) was $121.6
million compared with $116.9 million during the same nine-month
period last year.
- Total interest expense was $38.3 million in the third quarter
of fiscal 2018 compared with $42.9 million in the third quarter of
fiscal 2017. Total interest expense was $125.2 million for the
first nine months of fiscal 2018 compared with $126.5 million for
the first nine months of fiscal 2017.
- Income before income taxes for the quarter ended July 31, 2018
was $0.1 million compared with a loss before income taxes of $50.2
million during the third quarter of fiscal 2017. For the first nine
months of fiscal 2018, the loss before income taxes was $40.0
million compared with loss of $57.5 million during the first nine
months of fiscal 2017.
- Income before income taxes excluding land-related charges,
joint venture write-downs and loss on extinguishment of debt, was
$4.4 million during the third quarter of fiscal 2018 compared with
a loss of $3.7 million in the third quarter of fiscal 2017. For the
first nine months of fiscal 2018, the loss before income taxes,
excluding land-related charges, joint venture write-downs and loss
on extinguishment of debt, was $30.4 million compared with $13.4
million during the first nine months of fiscal 2017.
- Net loss was $1.0 million, or $0.01 per common share, in the
third quarter of fiscal 2018 compared with a net loss of $337.2
million, or $2.28 per common share, including a $294.0 increase in
the valuation allowance for our deferred tax assets, during the
same quarter a year ago. For the nine months ended July 31, 2018,
the net loss was $41.7 million, or $0.28 per common share, compared
with a net loss of $344.0 million, or $2.33 per common share,
including a $294.0 increase in the valuation allowance for our
deferred tax assets, in the first nine months of fiscal
2017.
- Contracts per community, including unconsolidated joint
ventures, increased 9.8% to 10.1 contracts per community for the
quarter ended July 31, 2018 compared with 9.2 contracts per
community, including unconsolidated joint ventures, in last year’s
third quarter. Consolidated contracts per community increased 6.4%
to 10.0 contracts per community for the third quarter of fiscal
2018 compared with 9.4 contracts per community in the third quarter
of fiscal 2017.
- As of the end of the third quarter of fiscal 2018, community
count, including unconsolidated joint ventures, was 143
communities, a 14.4% year-over-year decrease from 167 communities
at July 31, 2017. Consolidated community count decreased 12.8% to
123 communities as of July 31, 2018 from 141 communities at the end
of the prior year’s third quarter.
- The number of contracts, including unconsolidated joint
ventures, for the third quarter ended July 31, 2018, decreased 5.3%
to 1,451 homes from 1,533 homes for the same quarter last year. The
number of consolidated contracts decreased 6.4% to 1,236 homes,
during the third quarter of fiscal 2018, compared with 1,321 homes
during the third quarter of 2017.
- During the first nine months of fiscal 2018, the number of
contracts, including unconsolidated joint ventures, was 4,407
homes, a decrease of 4.0% from 4,593 homes during the first nine
months of fiscal 2017. The number of consolidated contracts
decreased 10.2% to 3,667 homes, during the nine month period ended
July 31, 2018, compared with 4,084 homes in the same period of the
previous year.
- The dollar value of contract backlog, including unconsolidated
joint ventures, as of July 31, 2018, was $1.32 billion, an increase
of 2.1% compared with $1.29 billion as of July 31, 2017. The dollar
value of consolidated contract backlog, as of July 31, 2018,
decreased 9.4% to $946.5 million compared with $1.04 billion as of
July 31, 2017.
- For the quarter ended July 31, 2018, deliveries, including
unconsolidated joint ventures, decreased 2.0% to 1,438 homes
compared with 1,467 homes during the third quarter of fiscal 2017.
Consolidated deliveries were 1,142 homes for the third quarter of
fiscal 2018, a 15.4% decrease compared with 1,350 homes during the
same quarter a year ago.
- For the nine months ended July 31, 2018, deliveries, including
unconsolidated joint ventures, decreased 8.3% to 4,002 homes
compared with 4,362 homes in the first nine months of the prior
year. Consolidated deliveries were 3,382 homes in the first nine
months of fiscal 2018, a 15.4% decrease compared with 3,998 homes
in the same period in fiscal 2017.
- The contract cancellation rate, including unconsolidated joint
ventures, was 19% in the third quarter of fiscal 2018 compared with
20% during the third quarter of fiscal 2017. The consolidated
contract cancellation rate was 19% for both the three months ended
July 31, 2018 and the three months ended July 31, 2017.
- The valuation allowance was $659.9 million as of July 31, 2018.
The valuation allowance is a non-cash reserve against the Company’s
tax assets for GAAP purposes. For tax purposes, the tax deductions
associated with the tax assets may be carried forward for 20 years
from the date the deductions were incurred.
LIQUIDITY AND INVENTORY AS OF JULY 31,
2018:
- Total liquidity at the end of the third quarter of fiscal 2018
was $242.1 million.
- In the third quarter of fiscal 2018, approximately 5,800 lots
were put under option or acquired in 56 communities, including
unconsolidated joint ventures.
- As of July 31, 2018, consolidated lots controlled increased
sequentially by 16.7% to 30,974 from 26,537 lots at April 30, 2018,
and increased 19.9% year over year from 25,834 lots at July 31,
2017. The consolidated land position, as of July 31, 2018, was
30,974 lots, consisting of 18,416 lots under option and 12,558
owned lots.
WEBCAST INFORMATION:
Hovnanian Enterprises will webcast its fiscal
2018 third quarter financial results conference call at 11:00 a.m.
E.T. on Monday, September 10, 2018. 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 names K. Hovnanian® Homes, Brighton 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., including a summary investment profile and the Company’s 2017
annual report, 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 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 (loss). The reconciliation for
historical periods of EBIT, EBITDA and Adjusted EBITDA to net
(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.
Income (Loss) Before Income Taxes
Excluding Land-Related Charges, Joint Venture Write-Downs and Loss
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 Income (Loss) Before Income Taxes Excluding
Land-Related Charges, Joint Venture Write-Downs and Loss on
Extinguishment of Debt to Income (Loss)
Before Income Taxes is presented in a table attached to
this earnings release.
Total liquidity is comprised of $216.7
million of cash and cash equivalents, $25.2 million of restricted
cash required to collateralize a performance bond and letters of
credit and $0.2 million of availability under the unsecured
revolving credit facility as of July 31, 2018.
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) changes in general and
local economic, industry and business conditions and impacts of a
sustained homebuilding downturn; (2) adverse weather and other
environmental conditions and natural disasters; (3) levels of
indebtedness and restrictions on the Company’s operations and
activities imposed by the agreements governing the Company’s
outstanding indebtedness; (4) the Company's sources of liquidity;
(5) changes in credit ratings; (6) changes in market conditions and
seasonality of the Company’s business; (7) the availability and
cost of suitable land and improved lots; (8) shortages in, and
price fluctuations of, raw materials and labor; (9) 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; (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) operations through joint ventures with third
parties; (13) government regulation, including regulations
concerning development of land, the home building, sales and
customer financing processes, tax laws and the environment; (14)
product liability litigation, warranty claims and claims made by
mortgage investors; (15) levels of competition; (16) availability
and terms of financing to the Company; (17) successful
identification and integration of acquisitions; (18) significant
influence of the Company’s controlling stockholders; (19)
availability of net operating loss carryforwards; (20) utility
shortages and outages or rate fluctuations; (21) geopolitical
risks, terrorist acts and other acts of war; (22) increases in
cancellations of agreements of sale; (23) loss of key management
personnel or failure to attract qualified personnel; (24)
information technology failures and data security breaches; (25)
legal claims brought against us and not resolved in our favor; 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, 2017 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.
(Financial Tables Follow)
Hovnanian Enterprises, Inc. |
July 31, 2018 |
Statements
of Consolidated Operations |
(Dollars
in Thousands, Except Per Share Data) |
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
July 31, |
|
July 31, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Total
Revenues |
$456,712 |
|
|
$592,035 |
|
|
$1,376,422 |
|
|
$1,729,979 |
|
Costs and
Expenses (a) |
|
463,100 |
|
|
|
596,069 |
|
|
|
1,417,586 |
|
|
|
1,742,565 |
|
Loss on
Extinguishment of Debt |
|
(4,266 |
) |
|
|
(42,258 |
) |
|
|
(5,706 |
) |
|
|
(34,854 |
) |
Income
(Loss) from Unconsolidated Joint Ventures |
|
10,732 |
|
|
|
(3,881 |
) |
|
|
6,899 |
|
|
|
(10,109 |
) |
Income
(Loss) Before Income Taxes |
|
78 |
|
|
|
(50,173 |
) |
|
|
(39,971 |
) |
|
|
(57,549 |
) |
Income Tax
Provision |
|
1,104 |
|
|
|
287,036 |
|
|
|
1,687 |
|
|
|
286,485 |
|
Net
(Loss) |
$(1,026 |
) |
|
$(337,209 |
) |
|
$(41,658 |
) |
|
$(344,034 |
) |
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
Net (Loss)
Per Common Share |
$(0.01 |
) |
|
$(2.28 |
) |
|
$(0.28 |
) |
|
$(2.33 |
) |
|
Weighted
Average Number of |
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding (b) |
|
148,669 |
|
|
|
147,748 |
|
|
|
148,377 |
|
|
|
147,628 |
|
Assuming
Dilution: |
|
|
|
|
|
|
|
|
Net (Loss)
Per Common Share |
$(0.01 |
) |
|
$(2.28 |
) |
|
$(0.28 |
) |
|
$(2.33 |
) |
|
Weighted
Average Number of |
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding (b) |
|
148,669 |
|
|
|
147,748 |
|
|
|
148,377 |
|
|
|
147,628 |
|
|
|
|
|
|
|
|
|
|
|
(a)
Includes inventory impairment loss and land option write-offs. |
(b)
For periods with a net (loss), basic shares are used in accordance
with GAAP rules. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hovnanian Enterprises, Inc. |
July 31, 2018 |
Reconciliation of Income (Loss) Before Income Taxes Excluding
Land-Related Charges, Joint Venture Write-Downs and Loss on
Extinguishment of Debt to Income (Loss) Before Income Taxes |
|
|
|
|
|
|
|
|
|
|
(Dollars in
Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
July 31, |
|
July 31, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Income
(Loss) Before Income Taxes |
$78 |
|
|
$(50,173 |
) |
|
$(39,971 |
) |
|
$(57,549 |
) |
Inventory
Impairment Loss and Land Option Write-Offs |
|
96 |
|
|
|
4,197 |
|
|
|
3,183 |
|
|
|
9,334 |
|
Unconsolidated Joint Venture Investment Write-Downs |
|
- |
|
|
|
- |
|
|
|
660 |
|
|
|
- |
|
Loss on
Extinguishment of Debt |
|
4,266 |
|
|
|
42,258 |
|
|
|
5,706 |
|
|
|
34,854 |
|
Income
(Loss) Before Income Taxes Excluding Land-Related Charges,
Joint Venture Write-Downs and Loss on Extinguishment of Debt
(a) |
$4,440 |
|
|
$(3,718 |
) |
|
$(30,422 |
) |
|
$(13,361 |
) |
|
|
|
|
|
|
|
|
|
|
(a) Income
(Loss) Before Income Taxes Excluding Land-Related Charges, Joint
Venture Write-Downs and Loss 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. |
July 31, 2018 |
Gross
Margin |
(Dollars
in Thousands) |
|
|
Homebuilding Gross Margin |
|
Homebuilding Gross Margin |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
July 31, |
|
July 31, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
(Unaudited) |
|
(Unaudited) |
Sale of Homes |
|
$442,859 |
|
$574,282 |
|
$1,312,553 |
|
$1,673,250 |
Cost of Sales,
Excluding Interest Expense (a) |
|
361,303 |
|
478,069 |
|
1,076,132 |
|
1,391,966 |
Homebuilding Gross
Margin, Before Cost of Sales Interest Expense and Land Charges
(b) |
|
81,556 |
|
96,213 |
|
236,421 |
|
281,284 |
Cost of Sales Interest
Expense, Excluding Land Sales Interest Expense |
|
13,424 |
|
18,397 |
|
41,025 |
|
55,284 |
Homebuilding Gross
Margin, After Cost of Sales Interest Expense, Before Land Charges
(b) |
|
68,132 |
|
77,816 |
|
195,396 |
|
226,000 |
Land Charges |
|
96 |
|
4,197 |
|
3,183 |
|
9,334 |
Homebuilding Gross
Margin |
|
$68,036 |
|
$73,619 |
|
$192,213 |
|
$216,666 |
|
|
|
|
|
|
|
|
|
Gross Margin
Percentage |
|
15.4% |
|
12.8% |
|
14.6% |
|
12.9% |
Gross Margin
Percentage, Before Cost of Sales Interest Expense and Land Charges
(b) |
|
18.4% |
|
16.8% |
|
18.0% |
|
16.8% |
Gross Margin
Percentage, After Cost of Sales Interest Expense, Before Land
Charges (b) |
|
15.4% |
|
13.6% |
|
14.9% |
|
13.5% |
|
|
|
|
|
|
|
|
|
|
|
Land Sales Gross Margin |
|
Land Sales Gross Margin |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
July 31, |
|
July 31, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
(Unaudited) |
|
(Unaudited) |
Land and Lot Sales |
|
$- |
|
$1,785 |
|
$20,505 |
|
$11,497 |
Cost of Sales,
Excluding Interest and Land Charges (a) |
|
- |
|
817 |
|
7,710 |
|
7,387 |
Land and Lot Sales
Gross Margin, Excluding Interest and Land Charges |
|
- |
|
968 |
|
12,795 |
|
4,110 |
Land and Lot Sales
Interest |
|
- |
|
974 |
|
4,055 |
|
2,746 |
Land and Lot Sales
Gross Margin, Including Interest and Excluding Land Charges |
|
$- |
|
$(6) |
|
$8,740 |
|
$1,364 |
|
|
|
|
|
|
|
|
|
(a) 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 Condensed
Consolidated Statements of Operations. |
(b)
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. |
July 31, 2018 |
Reconciliation of Adjusted EBITDA to Net (Loss) |
(Dollars
in Thousands) |
|
Three Months Ended |
|
Nine Months Ended |
|
July 31, |
|
July 31, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
(Unaudited) |
|
(Unaudited) |
Net (Loss) |
$(1,026 |
) |
|
$(337,209 |
) |
|
$(41,658 |
) |
|
$(344,034 |
) |
Income Tax
Provision |
|
1,104 |
|
|
|
287,036 |
|
|
|
1,687 |
|
|
|
286,485 |
|
Interest Expense |
|
38,283 |
|
|
|
42,930 |
|
|
|
125,158 |
|
|
|
126,513 |
|
EBIT (a) |
|
38,361 |
|
|
|
(7,243 |
) |
|
|
85,187 |
|
|
|
68,964 |
|
Depreciation |
|
811 |
|
|
|
1,129 |
|
|
|
2,320 |
|
|
|
3,212 |
|
Amortization of Debt
Costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,632 |
|
EBITDA (b) |
|
39,172 |
|
|
|
(6,114 |
) |
|
|
87,507 |
|
|
|
73,808 |
|
Inventory Impairment
Loss and Land Option Write-offs |
|
96 |
|
|
|
4,197 |
|
|
|
3,183 |
|
|
|
9,334 |
|
Loss on Extinguishment
of Debt |
|
4,266 |
|
|
|
42,258 |
|
|
|
5,706 |
|
|
|
34,854 |
|
Adjusted EBITDA
(c) |
$43,534 |
|
|
$40,341 |
|
|
$96,396 |
|
|
$117,996 |
|
|
|
|
|
|
|
|
|
Interest Incurred |
$40,438 |
|
|
$39,089 |
|
|
$121,617 |
|
|
$116,944 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA to
Interest Incurred |
|
1.08 |
|
|
|
1.03 |
|
|
|
0.79 |
|
|
|
1.01 |
|
|
|
|
|
|
|
|
|
(a)
EBIT is a non-GAAP financial measure. The most directly comparable
GAAP financial measure is net (loss). EBIT represents earnings
before interest expense and income taxes. |
(b)
EBITDA is a non-GAAP financial measure. The most directly
comparable GAAP financial measure is net (loss). EBITDA represents
earnings before interest expense, income taxes, depreciation and
amortization. |
(c)
Adjusted EBITDA is a non-GAAP financial measure. The most directly
comparable GAAP financial measure is net (loss). Adjusted EBITDA
represents earnings before interest expense, income taxes,
depreciation, amortization, inventory impairment loss and land
option write-offs and loss on extinguishment of debt. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hovnanian Enterprises, Inc. |
July 31, 2018 |
Interest
Incurred, Expensed and Capitalized |
(Dollars
in Thousands) |
|
Three Months Ended |
|
Nine Months Ended |
|
July 31, |
|
July 31, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
(Unaudited) |
|
(Unaudited) |
Interest Capitalized at
Beginning of Period |
$65,355 |
|
|
$90,960 |
|
|
$71,051 |
|
|
$96,688 |
|
Plus Interest
Incurred |
|
40,438 |
|
|
|
39,089 |
|
|
|
121,617 |
|
|
|
116,944 |
|
Less Interest
Expensed |
|
38,283 |
|
|
|
42,930 |
|
|
|
125,158 |
|
|
|
126,513 |
|
Interest Capitalized at
End of Period (a) |
$67,510 |
|
|
$87,119 |
|
|
$67,510 |
|
|
$87,119 |
|
|
|
|
|
|
|
|
|
(a)
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)
|
|
|
July 31,2018 |
|
|
October 31,2017 |
|
|
|
(Unaudited) |
|
|
(1) |
ASSETS |
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
Cash and
cash equivalents |
|
|
$216,707 |
|
|
$463,697 |
|
Restricted cash and cash equivalents |
|
|
25,345 |
|
|
2,077 |
|
Inventories: |
|
|
|
|
|
|
Sold and
unsold homes and lots under development |
|
|
913,469 |
|
|
744,119 |
|
Land and
land options held for future development or sale |
|
|
98,585 |
|
|
140,924 |
|
Consolidated inventory not owned |
|
|
96,989 |
|
|
124,784 |
|
Total
inventories |
|
|
1,109,043 |
|
|
1,009,827 |
|
Investments in and advances to unconsolidated joint ventures |
|
|
104,752 |
|
|
115,090 |
|
Receivables, deposits and notes, net |
|
|
37,911 |
|
|
58,149 |
|
Property,
plant and equipment, net |
|
|
20,138 |
|
|
52,919 |
|
Prepaid
expenses and other assets |
|
|
41,470 |
|
|
37,026 |
|
Total
homebuilding |
|
|
1,555,366 |
|
|
1,738,785 |
|
|
|
|
|
|
|
|
Financial services cash
and cash equivalents |
|
|
5,232 |
|
|
5,623 |
|
Financial services
other assets |
|
|
107,890 |
|
|
156,490 |
|
Total assets |
|
|
$1,668,488 |
|
|
$1,900,898 |
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
Nonrecourse mortgages secured by inventory, net of debt issuance
costs |
|
|
$95,368 |
|
|
$64,512 |
|
Accounts
payable and other liabilities |
|
|
311,230 |
|
|
335,057 |
|
Customers’ deposits |
|
|
38,052 |
|
|
33,772 |
|
Nonrecourse mortgages secured by operating properties |
|
|
- |
|
|
13,012 |
|
Liabilities from inventory not owned, net of debt issuance
costs |
|
|
72,416 |
|
|
91,101 |
|
Revolving
and term loan credit facilities, net of debt issuance costs |
|
|
301,460 |
|
|
124,987 |
|
Notes
payable (net of discount, premium and debt issuance costs) and
accrued interest |
|
|
1,255,158 |
|
|
1,554,687 |
|
Total
homebuilding |
|
|
2,073,684 |
|
|
2,217,128 |
|
|
|
|
|
|
|
|
Financial services |
|
|
93,195 |
|
|
141,914 |
|
Income taxes
payable |
|
|
2,240 |
|
|
2,227 |
|
Total liabilities |
|
|
2,169,119 |
|
|
2,361,269 |
|
|
|
|
|
|
|
|
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 July 31, 2018 and at October 31, 2017 |
|
|
135,299 |
|
|
135,299 |
|
Common
stock, Class A, $0.01 par value - authorized 400,000,000 shares;
issued 144,523,768 shares at July 31, 2018 and 144,046,073 shares
at October 31, 2017 |
|
|
1,445 |
|
|
1,440 |
|
Common
stock, Class B, $0.01 par value (convertible to Class A at time of
sale) - authorized 60,000,000 shares; issued 16,243,454 shares at
July 31, 2018 and 15,999,355 shares at October 31, 2017 |
|
|
162 |
|
|
160 |
|
Paid in
capital - common stock |
|
|
707,857 |
|
|
706,466 |
|
Accumulated deficit |
|
|
(1,230,034 |
) |
|
(1,188,376 |
) |
Treasury
stock - at cost – 11,760,763 shares of Class A common stock and
691,748 shares of Class B common stock at July 31, 2018 and October
31, 2017 |
|
|
(115,360 |
) |
|
(115,360 |
) |
Total
stockholders’ equity deficit |
|
|
(500,631 |
) |
|
(460,371 |
) |
Total liabilities and
equity |
|
|
$1,668,488 |
|
|
$1,900,898 |
|
|
(1) Derived
from the audited balance sheet as of October 31, 2017 |
|
HOVNANIAN ENTERPRISES, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In
Thousands Except Per Share Data)(Unaudited)
|
|
Three Months Ended July 31, |
|
|
Nine Months Ended July 31, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
Sale of
homes |
|
$442,859 |
|
|
$574,282 |
|
|
$1,312,553 |
|
|
$1,673,250 |
|
Land
sales and other revenues |
|
844 |
|
|
2,760 |
|
|
26,918 |
|
|
14,393 |
|
Total
homebuilding |
|
443,703 |
|
|
577,042 |
|
|
1,339,471 |
|
|
1,687,643 |
|
Financial
services |
|
13,009 |
|
|
14,993 |
|
|
36,951 |
|
|
42,336 |
|
Total
revenues |
|
456,712 |
|
|
592,035 |
|
|
1,376,422 |
|
|
1,729,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales, excluding interest |
|
361,303 |
|
|
478,886 |
|
|
1,083,842 |
|
|
1,399,353 |
|
Cost of
sales interest |
|
13,424 |
|
|
19,371 |
|
|
45,080 |
|
|
58,030 |
|
Inventory
impairment loss and land option write-offs |
|
96 |
|
|
4,197 |
|
|
3,183 |
|
|
9,334 |
|
Total
cost of sales |
|
374,823 |
|
|
502,454 |
|
|
1,132,105 |
|
|
1,466,717 |
|
Selling,
general and administrative |
|
37,544 |
|
|
45,517 |
|
|
126,319 |
|
|
135,392 |
|
Total
homebuilding expenses |
|
412,367 |
|
|
547,971 |
|
|
1,258,424 |
|
|
1,602,109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
services |
|
8,986 |
|
|
8,867 |
|
|
26,125 |
|
|
23,082 |
|
Corporate
general and administrative |
|
16,393 |
|
|
15,698 |
|
|
51,672 |
|
|
47,425 |
|
Other
interest |
|
24,859 |
|
|
23,559 |
|
|
80,078 |
|
|
68,483 |
|
Other
operations |
|
495 |
|
|
(26 |
) |
|
1,287 |
|
|
1,466 |
|
Total
expenses |
|
463,100 |
|
|
596,069 |
|
|
1,417,586 |
|
|
1,742,565 |
|
Loss on extinguishment
of debt |
|
(4,266 |
) |
|
(42,258 |
) |
|
(5,706 |
) |
|
(34,854 |
) |
Income (loss) from
unconsolidated joint ventures |
|
10,732 |
|
|
(3,881 |
) |
|
6,899 |
|
|
(10,109 |
) |
Income (loss) before
income taxes |
|
78 |
|
|
(50,173 |
) |
|
(39,971 |
) |
|
(57,549 |
) |
State and federal
income tax provision: |
|
|
|
|
|
|
|
|
|
|
|
|
State |
|
1,104 |
|
|
8,523 |
|
|
1,687 |
|
|
10,797 |
|
Federal |
|
- |
|
|
278,513 |
|
|
- |
|
|
275,688 |
|
Total
income taxes |
|
1,104 |
|
|
287,036 |
|
|
1,687 |
|
|
286,485 |
|
Net (loss) |
|
$(1,026 |
) |
|
$(337,209 |
) |
|
$(41,658 |
) |
|
$(344,034 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) per common share |
|
$(0.01 |
) |
|
$(2.28 |
) |
|
$(0.28 |
) |
|
$(2.33 |
) |
Weighted-average number of common shares outstanding |
|
148,669 |
|
|
147,748 |
|
|
148,377 |
|
|
147,628 |
|
Assuming dilution: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) per common share |
|
$(0.01 |
) |
|
$(2.28 |
) |
|
$(0.28 |
) |
|
$(2.33 |
) |
Weighted-average number of common shares outstanding |
|
148,669 |
|
|
147,748 |
|
|
148,377 |
|
|
147,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOVNANIAN ENTERPRISES, INC. |
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT DATA EXCLUDES UNCONSOLIDATED JOINT
VENTURES) |
(UNAUDITED) |
|
|
|
|
|
Three Months - July 31, 2018 |
|
|
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Three Months Ended |
Three Months Ended |
Backlog |
|
|
July 31, |
July 31, |
July 31, |
|
|
|
2018 |
|
2017 |
% Change |
|
2018 |
|
2017 |
% Change |
|
2018 |
|
2017 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(NJ, PA) |
Home |
|
32 |
|
52 |
(38.5 |
)% |
|
47 |
|
86 |
(45.3 |
)% |
|
68 |
|
116 |
(41.4 |
)% |
|
Dollars |
$18,045 |
$26,648 |
(32.3 |
)% |
$26,701 |
$40,015 |
(33.3 |
)% |
$40,058 |
$55,284 |
(27.5 |
)% |
|
Avg.
Price |
$563,909 |
$512,462 |
10.0 |
% |
$568,106 |
$465,289 |
22.1 |
% |
$589,089 |
$476,586 |
23.6 |
% |
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(DE, MD, VA, WV) |
Home |
|
144 |
|
173 |
(16.8 |
)% |
|
144 |
|
194 |
(25.8 |
)% |
|
324 |
|
419 |
(22.7 |
)% |
|
Dollars |
$76,324 |
$97,017 |
(21.3 |
)% |
$79,593 |
$113,111 |
(29.6 |
)% |
$196,011 |
$257,891 |
(24.0 |
)% |
|
Avg.
Price |
$530,032 |
$560,791 |
(5.5 |
)% |
$552,726 |
$583,050 |
(5.2 |
)% |
$604,973 |
$615,493 |
(1.7 |
)% |
Midwest |
|
|
|
|
|
|
|
|
|
|
(IL, OH) |
Home |
|
143 |
|
170 |
(15.9 |
)% |
|
157 |
|
127 |
23.6 |
% |
|
470 |
|
474 |
(0.8 |
)% |
|
Dollars |
$43,596 |
$48,257 |
(9.7 |
)% |
$45,579 |
$40,620 |
12.2 |
% |
$130,377 |
$133,775 |
(2.5 |
)% |
|
Avg.
Price |
$304,865 |
$283,864 |
7.4 |
% |
$290,313 |
$319,839 |
(9.2 |
)% |
$277,397 |
$282,226 |
(1.7 |
)% |
Southeast |
|
|
|
|
|
|
|
|
|
|
(FL, GA, SC) |
Home |
|
175 |
|
172 |
1.7 |
% |
|
121 |
|
166 |
(27.1 |
)% |
|
330 |
|
322 |
2.5 |
% |
|
Dollars |
$71,381 |
$73,896 |
(3.4 |
)% |
$47,472 |
$68,408 |
(30.6 |
)% |
$139,840 |
$142,296 |
(1.7 |
)% |
|
Avg.
Price |
$407,894 |
$429,632 |
(5.1 |
)% |
$392,330 |
$412,098 |
(4.8 |
)% |
$423,757 |
$441,912 |
(4.1 |
)% |
Southwest |
|
|
|
|
|
|
|
|
|
|
(AZ, TX) |
Home |
|
518 |
|
522 |
(0.8 |
)% |
|
469 |
|
581 |
(19.3 |
)% |
|
706 |
|
690 |
2.3 |
% |
|
Dollars |
$177,174 |
$177,285 |
(0.1 |
)% |
$157,406 |
$209,041 |
(24.7 |
)% |
$250,369 |
$244,114 |
2.6 |
% |
|
Avg.
Price |
$342,036 |
$339,625 |
0.7 |
% |
$335,620 |
$359,793 |
(6.7 |
)% |
$354,630 |
$353,788 |
0.2 |
% |
West |
|
|
|
|
|
|
|
|
|
|
(CA) |
Home |
|
224 |
|
232 |
(3.4 |
)% |
|
204 |
|
196 |
4.1 |
% |
|
389 |
|
454 |
(14.3 |
)% |
|
Dollars |
$102,183 |
$103,342 |
(1.1 |
)% |
$86,108 |
$103,087 |
(16.5 |
)% |
$189,868 |
$211,470 |
(10.2 |
)% |
|
Avg.
Price |
$456,173 |
$445,439 |
2.4 |
% |
$422,099 |
$525,956 |
(19.7 |
)% |
$488,094 |
$465,792 |
4.8 |
% |
Consolidated |
|
|
|
|
|
|
|
|
|
|
Total |
Home |
|
1,236 |
|
1,321 |
(6.4 |
)% |
|
1,142 |
|
1,350 |
(15.4 |
)% |
|
2,287 |
|
2,475 |
(7.6 |
)% |
|
Dollars |
$488,703 |
$526,445 |
(7.2 |
)% |
$442,859 |
$574,282 |
(22.9 |
)% |
$946,523 |
$1,044,830 |
(9.4 |
)% |
|
Avg.
Price |
$395,392 |
$398,520 |
(0.8 |
)% |
$387,793 |
$425,394 |
(8.8 |
)% |
$413,871 |
$422,154 |
(2.0 |
)% |
Unconsolidated |
|
|
|
|
|
|
|
|
|
|
Joint Ventures (2) |
Home |
|
215 |
|
212 |
1.4 |
% |
|
296 |
|
117 |
153.0 |
% |
|
555 |
|
405 |
37.0 |
% |
|
Dollars |
$127,195 |
$132,037 |
(3.7 |
)% |
$193,796 |
$62,127 |
211.9 |
% |
$370,113 |
$244,234 |
51.5 |
% |
|
Avg.
Price |
$591,603 |
$622,812 |
(5.0 |
)% |
$654,716 |
$531,001 |
23.3 |
% |
$666,872 |
$603,046 |
10.6 |
% |
Grand |
|
|
|
|
|
|
|
|
|
|
Total |
Home |
|
1,451 |
|
1,533 |
(5.3 |
)% |
|
1,438 |
|
1,467 |
(2.0 |
)% |
|
2,842 |
|
2,880 |
(1.3 |
)% |
|
Dollars |
$615,898 |
$658,482 |
(6.5 |
)% |
$636,655 |
$636,409 |
0.0 |
% |
$1,316,636 |
$1,289,064 |
2.1 |
% |
|
Avg.
Price |
$424,465 |
$429,538 |
(1.2 |
)% |
$442,736 |
$433,817 |
2.1 |
% |
$463,278 |
$447,592 |
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
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 (loss) from unconsolidated joint
ventures”. |
|
|
HOVNANIAN ENTERPRISES, INC. |
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT DATA EXCLUDES UNCONSOLIDATED JOINT
VENTURES) |
(UNAUDITED) |
|
|
|
|
|
Nine Months - July 31, 2018 |
|
|
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Nine Months Ended |
Nine Months Ended |
Backlog |
|
|
July 31, |
July 31, |
July 31, |
|
|
|
2018 |
|
2017 |
% Change |
|
2018 |
|
2017 |
% Change |
|
2018 |
|
2017 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(NJ, PA) |
Home |
|
104 |
|
201 |
(48.3 |
)% |
|
134 |
|
289 |
(53.6 |
)% |
|
68 |
|
116 |
(41.4 |
)% |
|
Dollars |
$58,686 |
$94,611 |
(38.0 |
)% |
$70,406 |
$138,839 |
(49.3 |
)% |
$40,058 |
$55,284 |
(27.5 |
)% |
|
Avg.
Price |
$564,290 |
$470,703 |
19.9 |
% |
$525,421 |
$480,412 |
9.4 |
% |
$589,089 |
$476,586 |
23.6 |
% |
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(DE, MD, VA, WV) |
Home |
|
481 |
|
589 |
(18.3 |
)% |
|
485 |
|
600 |
(19.2 |
)% |
|
324 |
|
419 |
(22.7 |
)% |
|
Dollars |
$256,936 |
$322,308 |
(20.3 |
)% |
$254,660 |
$313,390 |
(18.7 |
)% |
$196,011 |
$257,891 |
(24.0 |
)% |
|
Avg.
Price |
$534,170 |
$547,212 |
(2.4 |
)% |
$525,071 |
$522,317 |
0.5 |
% |
$604,973 |
$615,493 |
(1.7 |
)% |
Midwest |
|
|
|
|
|
|
|
|
|
|
(IL, OH) |
Home |
|
528 |
|
511 |
3.3 |
% |
|
440 |
|
411 |
7.1 |
% |
|
470 |
|
474 |
(0.8 |
)% |
|
Dollars |
$160,320 |
$155,312 |
3.2 |
% |
$128,912 |
$126,065 |
2.3 |
% |
$130,377 |
$133,775 |
(2.5 |
)% |
|
Avg.
Price |
$303,636 |
$303,938 |
(0.1 |
)% |
$292,982 |
$306,727 |
(4.5 |
)% |
$277,397 |
$282,226 |
(1.7 |
)% |
Southeast |
|
|
|
|
|
|
|
|
|
|
(FL, GA, SC) |
Home |
|
456 |
|
421 |
8.3 |
% |
|
411 |
|
431 |
(4.6 |
)% |
|
330 |
|
322 |
2.5 |
% |
|
Dollars |
$184,577 |
$175,924 |
4.9 |
% |
$165,120 |
$178,799 |
(7.7 |
)% |
$139,840 |
$142,296 |
(1.7 |
)% |
|
Avg.
Price |
$404,774 |
$417,873 |
(3.1 |
)% |
$401,751 |
$414,847 |
(3.2 |
)% |
$423,757 |
$441,912 |
(4.1 |
)% |
Southwest |
|
|
|
|
|
|
|
|
|
|
(AZ, TX) |
Home |
|
1,516 |
|
1,678 |
(9.7 |
)% |
|
1,319 |
|
1,751 |
(24.7 |
)% |
|
706 |
|
690 |
2.3 |
% |
|
Dollars |
$517,119 |
$575,669 |
(10.2 |
)% |
$444,568 |
$617,199 |
(28.0 |
)% |
$250,369 |
$244,114 |
2.6 |
% |
|
Avg.
Price |
$341,108 |
$343,068 |
(0.6 |
)% |
$337,049 |
$352,484 |
(4.4 |
)% |
$354,630 |
$353,788 |
0.2 |
% |
West |
|
|
|
|
|
|
|
|
|
|
(CA) |
Home |
|
582 |
|
684 |
(14.9 |
)% |
|
593 |
|
516 |
14.9 |
% |
|
389 |
|
454 |
(14.3 |
)% |
|
Dollars |
$264,793 |
$330,287 |
(19.8 |
)% |
$248,887 |
$298,958 |
(16.7 |
)% |
$189,868 |
$211,470 |
(10.2 |
)% |
|
Avg.
Price |
$454,970 |
$482,875 |
(5.8 |
)% |
$419,708 |
$579,376 |
(27.6 |
)% |
$488,094 |
$465,792 |
4.8 |
% |
Consolidated |
|
|
|
|
|
|
|
|
|
|
Total |
Home |
|
3,667 |
|
4,084 |
(10.2 |
)% |
|
3,382 |
|
3,998 |
(15.4 |
)% |
|
2,287 |
|
2,475 |
(7.6 |
)% |
|
Dollars |
$1,442,431 |
$1,654,111 |
(12.8 |
)% |
$1,312,553 |
$1,673,250 |
(21.6 |
)% |
$946,523 |
$1,044,830 |
(9.4 |
)% |
|
Avg.
Price |
$393,354 |
$405,022 |
(2.9 |
)% |
$388,100 |
$418,522 |
(7.3 |
)% |
$413,871 |
$422,154 |
(2.0 |
)% |
Unconsolidated |
|
|
|
|
|
|
|
|
|
|
Joint Ventures (2) |
Home |
|
740 |
|
509 |
45.4 |
% |
|
620 |
|
364 |
70.3 |
% |
|
555 |
|
405 |
37.0 |
% |
|
Dollars |
$443,389 |
$299,654 |
48.0 |
% |
$348,191 |
$212,983 |
63.5 |
% |
$370,113 |
$244,234 |
51.5 |
% |
|
Avg.
Price |
$599,175 |
$588,712 |
1.8 |
% |
$561,599 |
$585,118 |
(4.0 |
)% |
$666,872 |
$603,046 |
10.6 |
% |
Grand |
|
|
|
|
|
|
|
|
|
|
Total |
Home |
|
4,407 |
|
4,593 |
(4.0 |
)% |
|
4,002 |
|
4,362 |
(8.3 |
)% |
|
2,842 |
|
2,880 |
(1.3 |
)% |
|
Dollars |
$1,885,820 |
$1,953,765 |
(3.5 |
)% |
$1,660,744 |
$1,886,233 |
(12.0 |
)% |
$1,316,636 |
$1,289,064 |
2.1 |
% |
|
Avg.
Price |
$427,915 |
$425,379 |
0.6 |
% |
$414,978 |
$432,424 |
(4.0 |
)% |
$463,278 |
$447,592 |
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
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 (loss) from unconsolidated joint
ventures”. |
|
|
HOVNANIAN ENTERPRISES, INC. |
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT DATA UNCONSOLIDATED JOINT VENTURES
ONLY) |
(UNAUDITED) |
|
|
|
|
|
Three Months - July 31, 2018 |
|
|
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Three Months Ended |
Three Months Ended |
Backlog |
|
|
July 31, |
July 31, |
July 31, |
|
|
|
2018 |
|
2017 |
% Change |
|
2018 |
|
2017 |
% Change |
|
2018 |
|
2017 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
65 |
|
105 |
(38.1 |
)% |
|
140 |
|
19 |
636.8 |
% |
|
227 |
|
153 |
48.4 |
% |
(NJ, PA) |
Dollars |
$49,065 |
$78,516 |
(37.5 |
)% |
$109,889 |
$7,191 |
1,428.1 |
% |
$178,593 |
$105,356 |
69.5 |
% |
|
Avg.
Price |
$754,849 |
$747,767 |
0.9 |
% |
$784,924 |
$378,470 |
107.4 |
% |
$786,756 |
$688,602 |
14.3 |
% |
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
12 |
|
13 |
(7.7 |
)% |
|
17 |
|
17 |
0.0 |
% |
|
47 |
|
38 |
23.7 |
% |
(DE, MD, VA, WV) |
Dollars |
$10,626 |
$6,820 |
55.8 |
% |
$13,335 |
$10,933 |
22.0 |
% |
$39,640 |
$25,138 |
57.7 |
% |
|
Avg.
Price |
$885,500 |
$524,591 |
68.8 |
% |
$784,471 |
$643,118 |
22.0 |
% |
$843,404 |
$661,527 |
27.5 |
% |
Midwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
4 |
|
13 |
(69.2 |
)% |
|
16 |
|
6 |
166.7 |
% |
|
19 |
|
35 |
(45.7 |
)% |
(IL, OH) |
Dollars |
$2,121 |
$9,281 |
(77.1 |
)% |
$10,978 |
$4,824 |
127.6 |
% |
$14,556 |
$25,443 |
(42.8 |
)% |
|
Avg.
Price |
$530,000 |
$713,893 |
(25.8 |
)% |
$686,063 |
$804,000 |
(14.7 |
)% |
$766,105 |
$726,943 |
5.4 |
% |
Southeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
66 |
|
39 |
69.2 |
% |
|
38 |
|
34 |
11.8 |
% |
|
123 |
|
102 |
20.6 |
% |
(FL, GA, SC) |
Dollars |
$31,702 |
$17,350 |
82.7 |
% |
$15,619 |
$15,731 |
(0.7 |
)% |
$61,917 |
$49,697 |
24.6 |
% |
|
Avg.
Price |
$480,333 |
$444,869 |
8.0 |
% |
$411,029 |
$462,676 |
(11.2 |
)% |
$503,394 |
$487,224 |
3.3 |
% |
Southwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
38 |
|
10 |
280.0 |
% |
|
45 |
|
10 |
350.0 |
% |
|
99 |
|
27 |
266.7 |
% |
(AZ, TX) |
Dollars |
$22,656 |
$5,831 |
288.5 |
% |
$25,236 |
$6,925 |
264.4 |
% |
$60,849 |
$17,821 |
241.4 |
% |
|
Avg.
Price |
$596,211 |
$583,100 |
2.2 |
% |
$560,802 |
$692,504 |
(19.0 |
)% |
$614,637 |
$660,037 |
(6.9 |
)% |
West |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
30 |
|
32 |
(6.3 |
)% |
|
40 |
|
31 |
29.0 |
% |
|
40 |
|
50 |
(20.0 |
)% |
(CA) |
Dollars |
$11,025 |
$14,239 |
(22.6 |
)% |
$18,739 |
$16,523 |
13.4 |
% |
$14,558 |
$20,779 |
(29.9 |
)% |
|
Avg.
Price |
$367,532 |
$444,969 |
(17.4 |
)% |
$468,475 |
$533,000 |
(12.1 |
)% |
$363,954 |
$415,580 |
(12.4 |
)% |
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
215 |
|
212 |
1.4 |
% |
|
296 |
|
117 |
153.0 |
% |
|
555 |
|
405 |
37.0 |
% |
|
Dollars |
$127,195 |
$132,037 |
(3.7 |
)% |
$193,796 |
$62,127 |
211.9 |
% |
$370,113 |
$244,234 |
51.5 |
% |
|
Avg.
Price |
$591,603 |
$622,812 |
(5.0 |
)% |
$654,716 |
$531,001 |
23.3 |
% |
$666,872 |
$603,046 |
10.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
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 (loss) from unconsolidated joint
ventures”. |
|
|
HOVNANIAN ENTERPRISES, INC. |
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT DATA UNCONSOLIDATED JOINT VENTURES
ONLY) |
(UNAUDITED) |
|
|
|
|
|
Nine Months - July 31, 2018 |
|
|
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Nine Months Ended |
Nine Months Ended |
Backlog |
|
|
July 31, |
July 31, |
July 31, |
|
|
|
2018 |
|
2017 |
% Change |
|
2018 |
|
2017 |
% Change |
|
2018 |
|
2017 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
256 |
|
157 |
63.1 |
% |
|
246 |
|
31 |
693.5 |
% |
|
227 |
|
153 |
48.4 |
% |
(NJ, PA) |
Dollars |
$176,594 |
$106,970 |
65.1 |
% |
$154,680 |
$11,876 |
1,202.4 |
% |
$178,593 |
$105,356 |
69.5 |
% |
|
Avg.
Price |
$689,819 |
$681,335 |
1.2 |
% |
$628,781 |
$383,097 |
64.1 |
% |
$786,756 |
$688,602 |
14.3 |
% |
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
62 |
|
43 |
44.2 |
% |
|
26 |
|
45 |
(42.2 |
)% |
|
47 |
|
38 |
23.7 |
% |
(DE, MD, VA, WV) |
Dollars |
$50,664 |
$22,584 |
124.3 |
% |
$22,133 |
$27,534 |
(19.6 |
)% |
$39,640 |
$25,138 |
57.7 |
% |
|
Avg.
Price |
$817,159 |
$525,204 |
55.6 |
% |
$851,272 |
$611,867 |
39.1 |
% |
$843,404 |
$661,527 |
27.5 |
% |
Midwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
28 |
|
40 |
(30.0 |
)% |
|
36 |
|
17 |
111.8 |
% |
|
19 |
|
35 |
(45.7 |
)% |
(IL, OH) |
Dollars |
$19,091 |
$29,272 |
(34.8 |
)% |
$23,253 |
$13,418 |
73.3 |
% |
$14,556 |
$25,443 |
(42.8 |
)% |
|
Avg.
Price |
$681,820 |
$731,800 |
(6.8 |
)% |
$645,916 |
$789,294 |
(18.2 |
)% |
$766,105 |
$726,943 |
5.4 |
% |
Southeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
163 |
|
114 |
43.0 |
% |
|
118 |
|
100 |
18.0 |
% |
|
123 |
|
102 |
20.6 |
% |
(FL, GA, SC) |
Dollars |
$77,408 |
$51,095 |
51.5 |
% |
$52,301 |
$45,121 |
15.9 |
% |
$61,917 |
$49,697 |
24.6 |
% |
|
Avg.
Price |
$474,895 |
$448,201 |
6.0 |
% |
$443,229 |
$451,209 |
(1.8 |
)% |
$503,394 |
$487,224 |
3.3 |
% |
Southwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
131 |
|
32 |
309.4 |
% |
|
89 |
|
12 |
641.7 |
% |
|
99 |
|
27 |
266.7 |
% |
(AZ, TX) |
Dollars |
$78,003 |
$21,621 |
260.8 |
% |
$50,406 |
$8,278 |
508.9 |
% |
$60,849 |
$17,821 |
241.4 |
% |
|
Avg.
Price |
$595,445 |
$675,656 |
(11.9 |
)% |
$566,359 |
$689,833 |
(17.9 |
)% |
$614,637 |
$660,037 |
(6.9 |
)% |
West |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
100 |
|
123 |
(18.7 |
)% |
|
105 |
|
159 |
(34.0 |
)% |
|
40 |
|
50 |
(20.0 |
)% |
(CA) |
Dollars |
$41,629 |
$68,112 |
(38.9 |
)% |
$45,418 |
$106,756 |
(57.5 |
)% |
$14,558 |
$20,779 |
(29.9 |
)% |
|
Avg.
Price |
$416,295 |
$553,754 |
(24.8 |
)% |
$432,553 |
$671,423 |
(35.6 |
)% |
$363,954 |
$415,580 |
(12.4 |
)% |
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
740 |
|
509 |
45.4 |
% |
|
620 |
|
364 |
70.3 |
% |
|
555 |
|
405 |
37.0 |
% |
|
Dollars |
$443,389 |
$299,654 |
48.0 |
% |
$348,191 |
$212,983 |
63.5 |
% |
$370,113 |
$244,234 |
51.5 |
% |
|
Avg.
Price |
$599,175 |
$588,712 |
1.8 |
% |
$561,599 |
$585,118 |
(4.0 |
)% |
$666,872 |
$603,046 |
10.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
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 (loss) 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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