Reported Fourth Quarter Net Income of $46
MillionExceeded or Met
GuidanceConsolidated Lots Controlled Grew 20%
Year-over-Year
Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national
homebuilder, reported results for its fiscal fourth quarter and
year ended October 31, 2018.
“We are pleased to report solid performance in
our fourth quarter. We exceeded or met our guidance for total
revenues, gross margin, SG&A expense ratio and adjusted pretax
profits,” stated Ara K. Hovnanian, Chairman of the Board, President
and Chief Executive Officer. “Given the recent consumer hesitation
in purchasing homes, we remain cautious and are carefully
evaluating current market conditions when underwriting new land
acquisitions. Nonetheless, we continue to move forward with our
goal of increasing our community count. Our total consolidated lots
controlled at the end of the fourth quarter expanded 20% year over
year.”
“We recognize that there has been an overall
industry cooling in home sales during the quarter; a time when
mortgage rates rose and stock market volatility caused hesitation
among potential home buyers. However, given the overall demographic
trends and the strong U.S. economy, as home buyers become adjusted
to the higher mortgage rate environment, expectations will likely
adjust and the housing market should resume its path of recovery,”
concluded Mr. Hovnanian.
RESULTS FOR THE THREE-MONTH PERIOD AND
YEAR ENDED OCTOBER 31, 2018:
- Total revenues decreased to $614.8
million in the fourth quarter of fiscal 2018, compared with $721.7
million in the fourth quarter of fiscal 2017. For the year ended
October 31, 2018, total revenues decreased to $1.99 billion
compared with $2.45 billion in the prior fiscal year.
- While total revenues decreased
$106.9 million, homebuilding revenues for unconsolidated joint
ventures increased $154.5 million to $252.6 million for the fourth
quarter ended October 31, 2018, compared with $98.1 million in last
year’s fourth quarter. During all of fiscal 2018, homebuilding
revenues for unconsolidated joint ventures increased to $602.7
million compared with $312.2 million in the previous
year.
- Homebuilding gross margin
percentage, after cost of sales interest expense and land charges,
was 16.5% for the fourth quarter of fiscal 2018 compared with 13.7%
in the prior year’s fourth quarter. For the year ended October 31,
2018, homebuilding gross margin percentage, after cost of sales
interest expense and land charges, improved to 15.2% compared with
13.2% last year.
- Homebuilding gross margin
percentage, before cost of sales interest expense and land charges,
improved 100 basis points to 19.2% for the fourth quarter of fiscal
2018 compared with 18.2% in the same quarter one year ago. During
fiscal 2018, homebuilding gross margin percentage, before cost of
sales interest expense and land charges, improved 120 basis points
to 18.4% compared with 17.2% in the previous fiscal
year.
- For the fourth quarter of 2018,
total SG&A decreased by $22.0 million, or 30.2%, year over
year. Total SG&A was $50.8 million, or 8.3% of total revenues,
in the fourth quarter of fiscal 2018 compared with $72.9 million,
or 10.1% of total revenues, in the fourth quarter of fiscal 2017.
For the year ended October 31, 2018, total SG&A decreased by
$26.9 million, or 10.5%, year over year. For all of fiscal 2018,
total SG&A was $228.8 million, or 11.5% of total revenues,
compared with $255.7 million, or 10.4% of total revenues, in the
prior fiscal year.
- Total interest expense was $38.8
million in the fourth quarter of fiscal 2018 compared with $59.3
million in the fourth quarter of fiscal 2017. Total interest
expense was $164.0 million for all of fiscal 2018 compared with
$185.8 million for all of fiscal 2017.
- Interest incurred (some of which
was expensed and some of which was capitalized) was $39.4 million
for the fourth quarter of fiscal 2018 compared with $43.3 million
in the same quarter one year ago. For the year ended October 31,
2018, interest incurred (some of which was expensed and some of
which was capitalized) was $161.0 million compared with $160.2
million last year.
- Income before income taxes for the
quarter ended October 31, 2018 was $48.1 million compared with
$12.3 million during the fourth quarter of fiscal 2017. For all of
fiscal 2018, income before income taxes was $8.1 million compared
with loss of $45.2 million during all of fiscal 2017.
- Income before income taxes
excluding land-related charges, joint venture write-downs and loss
on extinguishment of debt, was $50.9 million during the fourth
quarter of fiscal 2018 compared with income before these items of
$20.8 million in the fourth quarter of fiscal 2017. For all of
fiscal 2018, income before income taxes, excluding land-related
charges, joint venture write-downs and loss on extinguishment of
debt, was $20.4 million compared with income before these items of
$10.2 million during all of fiscal 2017.
- Net income was $46.2 million, or
$0.30 per common share, in the fourth quarter of fiscal 2018
compared with net income of $11.8 million, or $0.08 per common
share, during the same quarter a year ago. For the year ended
October 31, 2018, net income was $4.5 million, or $0.03 per common
share, compared with a net loss of $332.2 million, or $2.25 per
common share, including a $294.0 million non-cash increase in the
valuation allowance for our deferred tax assets, in fiscal
2017.
- Contracts per community, including
unconsolidated joint ventures, decreased 3.5% to 8.3 contracts per
community for the quarter ended October 31, 2018 compared with 8.6
contracts per community, including unconsolidated joint ventures,
in last year’s fourth quarter. Consolidated contracts per community
decreased 4.7% to 8.2 contracts per community for the fourth
quarter of fiscal 2018 compared with 8.6 contracts per community in
the fourth quarter of fiscal 2017.
- Although contracts per community,
including unconsolidated joint ventures, were down slightly for the
quarter, contracts per community, including unconsolidated joint
ventures, increased in September 2018 to 2.7 compared with 2.5 in
September 2017 and increased in October 2018 to 2.9 compared with
2.8 in October 2017.
- Contracts per community, including
unconsolidated joint ventures, increased 6.4% to 36.8 contracts per
community for the year ended October 31, 2018 compared with 34.6
contracts per community, including unconsolidated joint ventures,
in all of fiscal 2017. Consolidated contracts per community
increased 2.6% to 36.0 contracts per community for all of fiscal
2018 compared with 35.1 contracts per community in the year ended
October 31, 2017.
- As of the end of the fourth quarter
of fiscal 2018, community count, including unconsolidated joint
ventures, was 142 communities, a 9.6% year-over-year decrease from
157 communities at October 31, 2017. Consolidated community count
decreased 5.4% to 123 communities as of October 31, 2018 from 130
communities at the end of the prior year’s fourth
quarter.
- The number of contracts, including
unconsolidated joint ventures, for the fourth quarter ended October
31, 2018, decreased 12.3% to 1,179 homes from 1,344 homes for the
same quarter last year. The number of consolidated contracts
decreased 9.7% to 1,004 homes, during the fourth quarter of fiscal
2018, compared with 1,112 homes during the fourth quarter of
2017.
- During all of fiscal 2018, the
number of contracts, including unconsolidated joint ventures, was
5,586 homes, a decrease of 5.9% from 5,937 homes during fiscal
2017. The number of consolidated contracts decreased 10.1% to 4,671
homes, during the twelve month period ended October 31, 2018,
compared with 5,196 homes in the same period of the previous fiscal
year.
- The dollar value of contract
backlog, including unconsolidated joint ventures, as of October 31,
2018, was $977.3 million, a decrease of 10.5% compared with $1.09
billion as of October 31, 2017. The dollar value of consolidated
contract backlog, as of October 31, 2018, decreased 7.7% to $745.6
million compared with $808.0 million as of October 31,
2017.
- For the quarter ended October 31,
2018, deliveries, including unconsolidated joint ventures,
increased 2.4% to 1,829 homes compared with 1,787 homes during the
fourth quarter of fiscal 2017. Consolidated deliveries were 1,465
homes for the fourth quarter of fiscal 2018, an 8.7% decrease
compared with 1,604 homes during the same quarter a year
ago.
- For the year ended October 31,
2018, deliveries, including unconsolidated joint ventures,
decreased 5.2% to 5,831 homes compared with 6,149 homes in the
prior fiscal year. Consolidated deliveries were 4,847 homes in
fiscal 2018, a 13.5% decrease compared with 5,602 homes in the same
period in fiscal 2017.
- The contract cancellation rate,
including unconsolidated joint ventures, was 22% in both the fourth
quarter of fiscal 2018 and fiscal 2017. The consolidated contract
cancellation rate was 23% for the three months ended October 31,
2018 compared with 22% for the three months ended October 31,
2017.
- The valuation allowance was $638.2
million as of October 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 OCTOBER 31,
2018:
- Total liquidity at the end of the
of fiscal 2018 was $325.6 million.
- In the fourth quarter of fiscal
2018, approximately 2,500 lots were put under option or acquired in
34 communities, including unconsolidated joint ventures.
- As of October 31, 2018,
consolidated lots controlled increased by 19.8% to 30,339 year over
year from 25,329 lots at October 31, 2017. The consolidated land
position, as of October 31, 2018, was 30,339 lots, consisting of
17,610 lots under option and 12,729 owned lots.
WEBCAST INFORMATION:
Hovnanian Enterprises will webcast its fiscal
2018 fourth quarter financial results conference call at 11:00 a.m.
E.T. on Thursday, December 6, 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 and 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 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.
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 $187.9
million of cash and cash equivalents, $12.7 million of restricted
cash required to collateralize letters of credit and $125.0 million
of availability under the senior secured revolving credit facility
as of October 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
significant homebuilding downturn; (2) adverse weather and other
environmental conditions and natural disasters; (3) high
leverage and restrictions on the Company’s operations and
activities imposed by the agreements governing the Company’s
outstanding indebtedness; (4) availability and terms of financing
to the Company; (5) the Company's sources of liquidity; (6) changes
in credit ratings; (7) the seasonality of the Company’s
business; (8) the availability and cost of suitable land and
improved lots and sufficient liquidity to invest in such land and
lots; (9) shortages in, and price fluctuations of, raw materials
and labor; (10) reliance on, and performance of, subcontractors;
(11) 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; (12) fluctuations in interest rates and the
availability of mortgage financing; (13) increases in cancellations
of agreements of sale; (14) changes in tax laws affecting the
after-tax costs of owning a home; (15) operations through
unconsolidated joint ventures with third parties; (16) government
regulation, including regulations concerning development of land,
the home building, sales and customer financing processes, tax laws
and the environment; (17) product liability litigation, warranty
claims and claims made by mortgage investors; (18) levels of
competition; (19) successful identification and integration of
acquisitions; (20) significant influence of the Company’s
controlling stockholders; (21) availability of net operating loss
carryforwards; (22) utility shortages and outages or rate
fluctuations; (23) geopolitical risks, terrorist acts and other
acts of war; (24) loss of key management personnel or failure to
attract qualified personnel; (25) information technology failures
and data security breaches; (26) legal claims brought against us
and not resolved in our favor; (27) negative publicity; and (28)
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)
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Hovnanian Enterprises, Inc. |
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October 31, 2018 |
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Statements
of Consolidated Operations |
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(Dollars in
Thousands, Except Per Share Data) |
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Three Months Ended |
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Twelve Months Ended |
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October 31, |
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October 31, |
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|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
(Unaudited) |
|
(Unaudited) |
Total
Revenues |
$614,811 |
|
$721,686 |
|
$1,991,233 |
|
$2,451,665 |
Costs and
Expenses (a) |
581,998 |
|
712,443 |
|
1,999,584 |
|
2,455,008 |
Loss on
Extinguishment of Debt |
(1,830) |
|
- |
|
(7,536) |
|
(34,854) |
Income
(Loss) from Unconsolidated Joint Ventures |
17,134 |
|
3,062 |
|
24,033 |
|
(7,047) |
Income
(Loss) Before Income Taxes |
48,117 |
|
12,305 |
|
8,146 |
|
(45,244) |
Income Tax
Provision |
1,939 |
|
464 |
|
3,626 |
|
286,949 |
Net Income
(Loss) |
$46,178 |
|
$11,841 |
|
$4,520 |
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$(332,193) |
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Per Share
Data: |
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Basic: |
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Net Income
(Loss) Per Common Share |
$0.30 |
|
$0.08 |
|
$0.03 |
|
$(2.25) |
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Weighted
Average Number of |
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Common Shares
Outstanding (b) |
148,925 |
|
147,905 |
|
148,515 |
|
147,703 |
Assuming
Dilution: |
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Net Income
(Loss) Per Common Share |
$0.29 |
|
$0.08 |
|
$0.03 |
|
$(2.25) |
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Weighted
Average Number of |
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Common Shares
Outstanding (b) |
151,929 |
|
160,548 |
|
152,609 |
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147,703 |
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(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. |
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Hovnanian Enterprises, Inc. |
October 31, 2018 |
Reconciliation of Income Before Income Taxes Excluding Land-Related
Charges, Joint Venture Write-Downs and Loss on Extinguishment of
Debt to Income (Loss) Before Income Taxes |
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(Dollars in
Thousands) |
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Three Months Ended |
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Twelve Months Ended |
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October 31, |
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October 31, |
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2018 |
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2017 |
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2018 |
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2017 |
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(Unaudited) |
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(Unaudited) |
Income
(Loss) Before Income Taxes |
$48,117 |
|
$12,305 |
|
$8,146 |
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$(45,244) |
Inventory
Impairment Loss and Land Option Write-Offs |
318 |
|
8,479 |
|
3,501 |
|
17,813 |
Unconsolidated Joint Venture Investment Write-Downs |
601 |
|
- |
|
1,261 |
|
2,763 |
Loss on
Extinguishment of Debt |
1,830 |
|
- |
|
7,536 |
|
34,854 |
Income
Before Income Taxes Excluding Land-Related Charges, Joint Venture
Write-Downs and Loss on Extinguishment of Debt (a) |
$50,866 |
|
$20,784 |
|
$20,444 |
|
$10,186 |
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|
(a) Income 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. |
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Hovnanian Enterprises, Inc. |
October 31, 2018 |
Gross
Margin |
(Dollars in
Thousands) |
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Homebuilding Gross Margin |
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Homebuilding Gross Margin |
|
Three Months Ended |
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Twelve Months Ended |
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October 31, |
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October 31, |
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2018 |
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2017 |
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2018 |
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2017 |
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(Unaudited) |
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(Unaudited) |
Sale of Homes |
$593,675 |
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$666,783 |
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$1,906,228 |
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$2,340,033 |
Cost of Sales,
Excluding Interest Expense (a) |
479,762 |
|
545,150 |
|
1,555,894 |
|
1,937,116 |
Homebuilding Gross
Margin, Before Cost of Sales Interest Expense and Land Charges
(b) |
113,913 |
|
121,633 |
|
350,334 |
|
402,917 |
Cost of Sales Interest
Expense, Excluding Land Sales Interest Expense |
15,563 |
|
21,618 |
|
56,588 |
|
76,902 |
Homebuilding Gross
Margin, After Cost of Sales Interest Expense, Before Land Charges
(b) |
98,350 |
|
100,015 |
|
293,746 |
|
326,015 |
Land Charges |
318 |
|
8,479 |
|
3,501 |
|
17,813 |
Homebuilding Gross
Margin |
$98,032 |
|
$91,536 |
|
$290,245 |
|
$308,202 |
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Gross Margin
Percentage |
16.5% |
|
13.7% |
|
15.2% |
|
13.2% |
Gross Margin
Percentage, Before Cost of Sales Interest Expense and Land Charges
(b) |
19.2% |
|
18.2% |
|
18.4% |
|
17.2% |
Gross Margin
Percentage, After Cost of Sales Interest Expense, Before Land
Charges (b) |
16.6% |
|
15.0% |
|
15.4% |
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13.9% |
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Land Sales Gross Margin |
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Land Sales Gross Margin |
|
Three Months Ended |
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Twelve Months Ended |
|
October 31, |
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October 31, |
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2018 |
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2017 |
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2018 |
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2017 |
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(Unaudited) |
|
(Unaudited) |
Land and Lot Sales |
$3,772 |
|
$37,099 |
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$24,277 |
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$48,596 |
Cost of Sales,
Excluding Interest and Land Charges (a) |
2,951 |
|
17,301 |
|
10,661 |
|
24,688 |
Land and Lot Sales
Gross Margin, Excluding Interest and Land Charges |
821 |
|
19,798 |
|
13,616 |
|
23,908 |
Land and Lot Sales
Interest |
42 |
|
8,888 |
|
4,097 |
|
11,634 |
Land and Lot Sales
Gross Margin, Including Interest and Excluding Land Charges |
$779 |
|
$10,910 |
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$9,519 |
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$12,274 |
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(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 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. |
October 31, 2018 |
Reconciliation of Adjusted EBITDA to Net Income (Loss) |
(Dollars in
Thousands) |
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|
Three Months Ended |
|
Twelve Months Ended |
|
October 31, |
|
October 31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
(Unaudited) |
|
(Unaudited) |
Net Income (Loss) |
$46,178 |
|
$11,841 |
|
$4,520 |
|
$(332,193) |
Income Tax
Provision |
1,939 |
|
464 |
|
3,626 |
|
286,949 |
Interest Expense |
38,824 |
|
59,327 |
|
163,982 |
|
185,840 |
EBIT (a) |
86,941 |
|
71,632 |
|
172,128 |
|
140,596 |
Depreciation |
836 |
|
1,037 |
|
3,156 |
|
4,249 |
Amortization of Debt
Costs |
- |
|
- |
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- |
|
1,632 |
EBITDA (b) |
87,777 |
|
72,669 |
|
175,284 |
|
146,477 |
Inventory Impairment
Loss and Land Option Write-offs |
318 |
|
8,479 |
|
3,501 |
|
17,813 |
Loss on Extinguishment
of Debt |
1,830 |
|
- |
|
7,536 |
|
34,854 |
Adjusted EBITDA
(c) |
$89,925 |
|
$81,148 |
|
$186,321 |
|
$199,144 |
|
|
|
|
|
|
|
|
Interest Incurred |
$39,431 |
|
$43,259 |
|
$161,048 |
|
$160,203 |
|
|
|
|
|
|
|
|
Adjusted EBITDA to
Interest Incurred |
2.28 |
|
1.88 |
|
1.16 |
|
1.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) 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. |
(b) 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. |
(c)
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 on extinguishment of debt. |
|
|
|
|
|
|
|
|
Hovnanian Enterprises, Inc. |
October 31, 2018 |
Interest
Incurred, Expensed and Capitalized |
(Dollars in
Thousands) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
October 31, |
|
October 31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
(Unaudited) |
|
(Unaudited) |
Interest Capitalized at
Beginning of Period |
$67,510 |
|
$87,119 |
|
$71,051 |
|
$96,688 |
Plus Interest
Incurred |
39,431 |
|
43,259 |
|
161,048 |
|
160,203 |
Less Interest
Expensed |
38,824 |
|
59,327 |
|
163,982 |
|
185,840 |
Interest Capitalized at
End of Period (a) |
$68,117 |
|
$71,051 |
|
$68,117 |
|
$71,051 |
|
|
|
|
|
|
|
|
(a)
Capitalized interest amounts are shown gross before allocating any
portion of impairments to capitalized interest. |
|
HOVNANIAN ENTERPRISES, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(In Thousands)
|
October
31,2018 |
|
October
31,2017 |
ASSETS |
(Unaudited) |
|
(1) |
Homebuilding: |
|
|
|
Cash and cash
equivalents |
$187,871 |
|
$463,697 |
Restricted cash and
cash equivalents |
12,808 |
|
2,077 |
Inventories: |
|
|
|
Sold and
unsold homes and lots under development |
878,876 |
|
744,119 |
Land and
land options held for future development or sale |
111,368 |
|
140,924 |
Consolidated inventory not owned |
87,921 |
|
124,784 |
Total
inventories |
1,078,165 |
|
1,009,827 |
Investments in and
advances to unconsolidated joint ventures |
123,694 |
|
115,090 |
Receivables, deposits
and notes, net |
35,189 |
|
58,149 |
Property, plant and
equipment, net |
20,285 |
|
52,919 |
Prepaid expenses and
other assets |
39,150 |
|
37,026 |
Total
homebuilding |
1,497,162 |
|
1,738,785 |
Financial
services |
164,880 |
|
162,113 |
Total assets |
$1,662,042 |
|
$1,900,898 |
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
Homebuilding: |
|
|
|
Nonrecourse mortgages secured by inventory, net of debt issuance
costs |
$95,557 |
|
$64,512 |
Accounts
payable and other liabilities |
304,899 |
|
335,057 |
Customers’ deposits |
30,086 |
|
33,772 |
Nonrecourse mortgages secured by operating properties |
- |
|
13,012 |
Liabilities from inventory not owned, net of debt issuance
costs |
63,387 |
|
91,101 |
Revolving
and term loan credit facilities, net of debt issuance costs |
201,389 |
|
124,987 |
Notes
payable (net of discount, premium and debt issuance costs) and
accrued interest |
1,273,446 |
|
1,554,687 |
Total
homebuilding |
1,968,764 |
|
2,217,128 |
Financial services |
143,448 |
|
141,914 |
Income taxes
payable |
3,334 |
|
2,227 |
Total liabilities |
2,115,546 |
|
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 October 31, 2018 and 2017 |
135,299 |
|
135,299 |
Common
stock, Class A, $0.01 par value - authorized 400,000,000 shares;
issued 144,596,485 shares at October 31, 2018 and 144,046,073
shares at October 31, 2017 |
1,446 |
|
1,440 |
Common
stock, Class B, $0.01 par value (convertible to Class A at time of
sale) - authorized 60,000,000 shares; issued 16,241,847 shares at
October 31, 2018 and 15,999,355 shares at October 31, 2017 |
162 |
|
160 |
Paid in
capital - common stock |
708,805 |
|
706,466 |
Accumulated deficit |
(1,183,856) |
|
(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 October 31, 2018 and
2017 |
(115,360) |
|
(115,360) |
Total stockholders'
equity deficit |
(453,504) |
|
(460,371) |
Total liabilities and
equity |
$1,662,042 |
|
$1,900,898 |
|
|
|
|
(1) Derived from the audited balance sheet as of October 31,
2017.
HOVNANIAN ENTERPRISES, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(In Thousands
Except Per Share Data)(Unaudited)
|
Three Months EndedOctober 31, |
|
Twelve Months EndedOctober 31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Revenues: |
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
Sale of
homes |
$593,675 |
|
$666,783 |
|
$1,906,228 |
|
$2,340,033 |
Land
sales and other revenues |
4,732 |
|
38,496 |
|
31,650 |
|
52,889 |
Total
homebuilding |
598,407 |
|
705,279 |
|
1,937,878 |
|
2,392,922 |
Financial
services |
16,404 |
|
16,407 |
|
53,355 |
|
58,743 |
Total
revenues |
614,811 |
|
721,686 |
|
1,991,233 |
|
2,451,665 |
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
Cost of
sales, excluding interest |
482,713 |
|
562,451 |
|
1,566,555 |
|
1,961,804 |
Cost of
sales interest |
15,605 |
|
30,506 |
|
60,685 |
|
88,536 |
Inventory
impairment loss and land option write-offs |
318 |
|
8,479 |
|
3,501 |
|
17,813 |
Total
cost of sales |
498,636 |
|
601,436 |
|
1,630,741 |
|
2,068,153 |
Selling,
general and administrative |
32,883 |
|
60,928 |
|
159,202 |
|
196,320 |
Total
homebuilding expenses |
531,519 |
|
662,364 |
|
1,789,943 |
|
2,264,473 |
|
|
|
|
|
|
|
|
Financial
services |
9,003 |
|
9,264 |
|
35,128 |
|
32,346 |
Corporate
general and administrative |
17,960 |
|
11,942 |
|
69,632 |
|
59,367 |
Other
interest |
23,219 |
|
28,821 |
|
103,297 |
|
97,304 |
Other
operations |
297 |
|
52 |
|
1,584 |
|
1,518 |
Total
expenses |
581,998 |
|
712,443 |
|
1,999,584 |
|
2,455,008 |
Loss on extinguishment
of debt |
(1,830) |
|
- |
|
(7,536) |
|
(34,854) |
Income (loss) from
unconsolidated joint ventures |
17,134 |
|
3,062 |
|
24,033 |
|
(7,047) |
Income (loss) before
income taxes |
48,117 |
|
12,305 |
|
8,146 |
|
(45,244) |
State and federal
income tax provision: |
|
|
|
|
|
|
|
State |
1,939 |
|
464 |
|
3,626 |
|
11,261 |
Federal |
- |
|
- |
|
- |
|
275,688 |
Total
income taxes |
1,939 |
|
464 |
|
3,626 |
|
286,949 |
Net income (loss) |
$46,178 |
|
$11,841 |
|
$4,520 |
|
$(332,193) |
|
|
|
|
|
|
|
|
Per share data: |
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
Net
income (loss) per common share |
$0.30 |
|
$0.08 |
|
$0.03 |
|
$(2.25) |
Weighted-average number of common shares outstanding |
148,925 |
|
147,905 |
|
148,515 |
|
147,703 |
Assuming dilution: |
|
|
|
|
|
|
|
Net
income (loss) per common share |
$0.29 |
|
$0.08 |
|
$0.03 |
|
$(2.25) |
Weighted-average number of common shares outstanding |
151,929 |
|
160,548 |
|
152,609 |
|
147,703 |
|
|
|
|
|
|
|
|
HOVNANIAN ENTERPRISES, INC. |
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT DATA EXCLUDES UNCONSOLIDATED JOINT
VENTURES) |
(UNAUDITED) |
|
|
|
|
|
Three Months - October 31, 2018 |
|
|
|
|
|
Contracts
(1) |
Deliveries |
Contract |
|
|
Three Months Ended |
Three Months Ended |
Backlog |
|
|
October 31, |
October 31, |
October 31, |
|
|
|
2018 |
|
2017 |
% Change |
|
2018 |
|
2017 |
% Change |
|
2018 |
|
2017 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(NJ,
PA) |
Home |
|
27 |
|
44 |
(38.6)% |
|
|
44 |
|
62 |
(29.0)% |
|
|
51 |
|
98 |
(48.0)% |
|
|
Dollars |
$16,044 |
$24,407 |
(34.3)% |
|
$25,606 |
$27,913 |
(8.3)% |
|
$30,496 |
$51,778 |
(41.1)% |
|
|
Avg.
Price |
$594,222 |
$554,708 |
7.1% |
|
$581,955 |
$450,208 |
29.3% |
|
$597,961 |
$528,349 |
13.2% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(DE, MD, VA, WV) |
Home |
|
159 |
|
146 |
8.9% |
|
|
187 |
|
256 |
(27.0)% |
|
|
296 |
|
309 |
(4.2)% |
|
|
Dollars |
$84,027 |
$77,112 |
9.0% |
|
$99,493 |
$149,881 |
(33.6)% |
|
$180,546 |
$185,123 |
(2.5)% |
|
|
Avg.
Price |
$528,472 |
$528,168 |
0.1% |
|
$532,048 |
$585,473 |
(9.1)% |
|
$609,953 |
$599,104 |
1.8% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(IL, OH) |
Home |
|
146 |
|
137 |
6.6% |
|
|
222 |
|
229 |
(3.1)% |
|
|
394 |
|
382 |
3.1% |
|
|
Dollars |
$44,167 |
$38,139 |
15.8% |
|
$67,395 |
$72,944 |
(7.6)% |
|
$107,149 |
$98,969 |
8.3% |
|
|
Avg.
Price |
$302,514 |
$278,383 |
8.7% |
|
$303,581 |
$318,533 |
(4.7)% |
|
$271,952 |
$259,082 |
5.0% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(FL, GA, SC) |
Home |
|
106 |
|
146 |
(27.4)% |
|
|
185 |
|
183 |
1.1% |
|
|
251 |
|
285 |
(11.9)% |
|
|
Dollars |
$41,126 |
$56,354 |
(27.0)% |
|
$72,828 |
$78,267 |
(6.9)% |
|
$108,137 |
$120,382 |
(10.2)% |
|
|
Avg.
Price |
$387,981 |
$385,986 |
0.5% |
|
$393,665 |
$427,691 |
(8.0)% |
|
$430,825 |
$422,394 |
2.0% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(AZ, TX) |
Home |
|
371 |
|
425 |
(12.7)% |
|
|
554 |
|
606 |
(8.6)% |
|
|
523 |
|
509 |
2.8% |
|
|
Dollars |
$123,485 |
$142,926 |
(13.6)% |
|
$193,000 |
$209,223 |
(7.8)% |
|
$180,854 |
$177,818 |
1.7% |
|
|
Avg.
Price |
$332,844 |
$336,298 |
(1.0)% |
|
$348,375 |
$345,252 |
0.9% |
|
$345,801 |
$349,347 |
(1.0)% |
|
West |
|
|
|
|
|
|
|
|
|
|
(CA) |
Home |
|
195 |
|
214 |
(8.9)% |
|
|
273 |
|
268 |
1.9% |
|
|
311 |
|
400 |
(22.3)% |
|
|
Dollars |
$83,933 |
$91,048 |
(7.8)% |
|
$135,353 |
$128,555 |
5.3% |
|
$138,448 |
$173,963 |
(20.4)% |
|
|
Avg.
Price |
$430,426 |
$425,457 |
1.2% |
|
$495,799 |
$479,683 |
3.4% |
|
$445,170 |
$434,906 |
2.4% |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Total |
Home |
|
1,004 |
|
1,112 |
(9.7)% |
|
|
1,465 |
|
1,604 |
(8.7)% |
|
|
1,826 |
|
1,983 |
(7.9)% |
|
|
Dollars |
$392,782 |
$429,986 |
(8.7)% |
|
$593,675 |
$666,783 |
(11.0)% |
|
$745,630 |
$808,033 |
(7.7)% |
|
|
Avg.
Price |
$391,217 |
$386,678 |
1.2% |
|
$405,238 |
$415,700 |
(2.5)% |
|
$408,341 |
$407,480 |
0.2% |
|
Unconsolidated |
|
|
|
|
|
|
|
|
|
|
Joint Ventures (2) |
Home |
|
175 |
|
232 |
(24.6)% |
|
|
364 |
|
183 |
98.9% |
|
|
366 |
|
454 |
(19.4)% |
|
|
Dollars |
$113,356 |
$136,884 |
(17.2)% |
|
$251,788 |
$97,590 |
158.0% |
|
$231,682 |
$283,528 |
(18.3)% |
|
|
Avg.
Price |
$647,749 |
$590,017 |
9.8% |
|
$691,725 |
$533,275 |
29.7% |
|
$633,011 |
$624,510 |
1.4% |
|
Grand |
|
|
|
|
|
|
|
|
|
|
Total |
Home |
|
1,179 |
|
1,344 |
(12.3)% |
|
|
1,829 |
|
1,787 |
2.4% |
|
|
2,192 |
|
2,437 |
(10.1)% |
|
|
Dollars |
$506,138 |
$566,870 |
(10.7)% |
|
$845,463 |
$764,373 |
10.6% |
|
$977,312 |
$1,091,561 |
(10.5)% |
|
|
Avg.
Price |
$429,294 |
$421,778 |
1.8% |
|
$462,254 |
$427,741 |
8.1% |
|
$445,854 |
$447,912 |
(0.5)% |
|
|
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) |
|
|
|
|
|
Twelve Months - October 31, 2018 |
|
|
|
|
|
Contracts
(1) |
Deliveries |
Contract |
|
|
Twelve Months Ended |
Twelve Months Ended |
Backlog |
|
|
October 31, |
October 31, |
October 31, |
|
|
2018 |
2017 |
% Change |
2018 |
2017 |
% Change |
2018 |
2017 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(NJ,
PA) |
Home |
|
131 |
|
245 |
(46.5)% |
|
|
178 |
|
351 |
(49.3)% |
|
|
51 |
|
98 |
(48.0)% |
|
|
Dollars |
$74,730 |
$119,018 |
(37.2)% |
|
$96,012 |
$166,752 |
(42.4)% |
|
$30,496 |
$51,778 |
(41.1)% |
|
|
Avg.
Price |
$570,458 |
$485,789 |
17.4% |
|
$539,393 |
$475,077 |
13.5% |
|
$597,961 |
$528,349 |
13.2% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(DE, MD, VA, WV) |
Home |
|
640 |
|
735 |
(12.9)% |
|
|
672 |
|
856 |
(21.5)% |
|
|
296 |
|
309 |
(4.2)% |
|
|
Dollars |
$340,963 |
$399,420 |
(14.6)% |
|
$354,153 |
$463,271 |
(23.6)% |
|
$180,546 |
$185,123 |
(2.5)% |
|
|
Avg.
Price |
$532,755 |
$543,429 |
(2.0)% |
|
$527,013 |
$541,205 |
(2.6)% |
|
$609,953 |
$599,104 |
1.8% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(IL, OH) |
Home |
|
674 |
|
648 |
4.0% |
|
|
662 |
|
640 |
3.4% |
|
|
394 |
|
382 |
3.1% |
|
|
Dollars |
$204,487 |
$193,451 |
5.7% |
|
$196,307 |
$199,009 |
(1.4)% |
|
$107,149 |
$98,969 |
8.3% |
|
|
Avg.
Price |
$303,393 |
$298,535 |
1.6% |
|
$296,536 |
$310,951 |
(4.6)% |
|
$271,952 |
$259,082 |
5.0% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(FL, GA, SC) |
Home |
|
562 |
|
567 |
(0.9)% |
|
|
596 |
|
614 |
(2.9)% |
|
|
251 |
|
285 |
(11.9)% |
|
|
Dollars |
$225,703 |
$232,278 |
(2.8)% |
|
$237,948 |
$257,066 |
(7.4)% |
|
$108,137 |
$120,382 |
(10.2)% |
|
|
Avg.
Price |
$401,607 |
$409,662 |
(2.0)% |
|
$399,242 |
$418,675 |
(4.6)% |
|
$430,825 |
$422,394 |
2.0% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(AZ, TX) |
Home |
|
1,887 |
|
2,103 |
(10.3)% |
|
|
1,873 |
|
2,357 |
(20.5)% |
|
|
523 |
|
509 |
2.8% |
|
|
Dollars |
$640,604 |
$718,595 |
(10.9)% |
|
$637,568 |
$826,422 |
(22.9)% |
|
$180,854 |
$177,818 |
1.7% |
|
|
Avg.
Price |
$339,483 |
$341,700 |
(0.6)% |
|
$340,399 |
$350,624 |
(2.9)% |
|
$345,801 |
$349,347 |
(1.0)% |
|
West |
|
|
|
|
|
|
|
|
|
|
(CA) |
Home |
|
777 |
|
898 |
(13.5)% |
|
|
866 |
|
784 |
10.5% |
|
|
311 |
|
400 |
(22.3)% |
|
|
Dollars |
$348,726 |
$421,335 |
(17.2)% |
|
$384,240 |
$427,513 |
(10.1)% |
|
$138,448 |
$173,963 |
(20.4)% |
|
|
Avg.
Price |
$448,811 |
$469,192 |
(4.3)% |
|
$443,695 |
$545,297 |
(18.6)% |
|
$445,170 |
$434,906 |
2.4% |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Total |
Home |
|
4,671 |
|
5,196 |
(10.1)% |
|
|
4,847 |
|
5,602 |
(13.5)% |
|
|
1,826 |
|
1,983 |
(7.9)% |
|
|
Dollars |
$1,835,213 |
$2,084,097 |
(11.9)% |
|
$1,906,228 |
$2,340,033 |
(18.5)% |
|
$745,630 |
$808,033 |
(7.7)% |
|
|
Avg.
Price |
$392,895 |
$401,096 |
(2.0)% |
|
$393,280 |
$417,714 |
(5.8)% |
|
$408,341 |
$407,480 |
0.2% |
|
Unconsolidated |
|
|
|
|
|
|
|
|
|
|
Joint Ventures (2) |
Home |
|
915 |
|
741 |
23.5% |
|
|
984 |
|
547 |
79.9% |
|
|
366 |
|
454 |
(19.4)% |
|
|
Dollars |
$556,745 |
$436,538 |
27.5% |
|
$599,979 |
$310,573 |
93.2% |
|
$231,682 |
$283,528 |
(18.3)% |
|
|
Avg.
Price |
$608,464 |
$589,120 |
3.3% |
|
$609,735 |
$567,774 |
7.4% |
|
$633,011 |
$624,510 |
1.4% |
|
Grand |
|
|
|
|
|
|
|
|
|
|
Total |
Home |
|
5,586 |
|
5,937 |
(5.9)% |
|
|
5,831 |
|
6,149 |
(5.2)% |
|
|
2,192 |
|
2,437 |
(10.1)% |
|
|
Dollars |
$2,391,958 |
$2,520,635 |
(5.1)% |
|
$2,506,207 |
$2,650,606 |
(5.4)% |
|
$977,312 |
$1,091,561 |
(10.5)% |
|
|
Avg.
Price |
$428,206 |
$424,564 |
0.9% |
|
$429,807 |
$431,063 |
(0.3)% |
|
$445,854 |
$447,912 |
(0.5)% |
|
|
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 FOR UNCONSOLIDATED JOINT VENTURES
ONLY) |
(UNAUDITED) |
|
|
|
|
|
Three Months - October 31, 2018 |
|
|
|
|
|
Contracts
(1) |
Deliveries |
Contract |
|
|
Three Months Ended |
Three Months Ended |
Backlog |
|
|
October 31, |
October 31, |
October 31, |
|
|
2018 |
2017 |
% Change |
2018 |
2017 |
% Change |
2018 |
2017 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated
joint ventures) |
Home |
|
68 |
|
105 |
(35.2)% |
|
|
176 |
|
41 |
329.3% |
|
|
119 |
|
217 |
(45.2)% |
|
(NJ, PA) |
Dollars |
$54,595 |
$70,821 |
(22.9)% |
|
$138,823 |
$19,498 |
612.0% |
|
$94,366 |
$156,679 |
(39.8)% |
|
|
Avg.
Price |
$802,868 |
$674,490 |
19.0% |
|
$788,767 |
$475,561 |
65.9% |
|
$792,992 |
$722,027 |
9.8% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
13 |
|
12 |
8.3% |
|
|
36 |
|
20 |
80.0% |
|
|
24 |
|
30 |
(20.0)% |
|
(DE, MD, VA, WV) |
Dollars |
$9,303 |
$8,282 |
12.3% |
|
$30,104 |
$13,699 |
119.8% |
|
$18,839 |
$19,721 |
(4.5)% |
|
|
Avg.
Price |
$715,615 |
$690,167 |
3.7% |
|
$836,222 |
$684,950 |
22.1% |
|
$784,958 |
$657,365 |
19.4% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
11 |
|
9 |
22.2% |
|
|
21 |
|
17 |
23.5% |
|
|
9 |
|
27 |
(66.7)% |
|
(IL, OH) |
Dollars |
$6,716 |
$5,561 |
20.8% |
|
$15,196 |
$12,286 |
23.7% |
|
$6,076 |
$18,718 |
(67.5)% |
|
|
Avg.
Price |
$610,545 |
$617,889 |
(1.2)% |
|
$723,619 |
$722,706 |
0.1% |
|
$675,111 |
$693,259 |
(2.6)% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
40 |
|
25 |
60.0% |
|
|
41 |
|
49 |
(16.3)% |
|
|
122 |
|
78 |
56.4% |
|
(FL, GA, SC) |
Dollars |
$21,496 |
$9,356 |
129.8% |
|
$20,159 |
$22,243 |
(9.4)% |
|
$63,254 |
$36,811 |
71.8% |
|
|
Avg.
Price |
$537,400 |
$374,240 |
43.6% |
|
$491,683 |
$453,937 |
8.3% |
|
$518,475 |
$471,936 |
9.9% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
27 |
|
50 |
(46.0)% |
|
|
59 |
|
20 |
195.0% |
|
|
67 |
|
57 |
17.5% |
|
(AZ, TX) |
Dollars |
$15,498 |
$29,267 |
(47.0)% |
|
$35,882 |
$13,835 |
159.4% |
|
$40,465 |
$33,252 |
21.7% |
|
|
Avg.
Price |
$574,000 |
$585,340 |
(1.9)% |
|
$608,169 |
$691,750 |
(12.1)% |
|
$603,955 |
$583,368 |
3.5% |
|
West |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
16 |
|
31 |
(48.4)% |
|
|
31 |
|
36 |
(13.9)% |
|
|
25 |
|
45 |
(44.4)% |
|
(CA) |
Dollars |
$5,748 |
$13,597 |
(57.7)% |
|
$11,624 |
$16,029 |
(27.5)% |
|
$8,682 |
$18,347 |
(52.7)% |
|
|
Avg.
Price |
$359,250 |
$438,613 |
(18.1)% |
|
$374,968 |
$445,252 |
(15.8)% |
|
$347,280 |
$407,711 |
(14.8)% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
175 |
|
232 |
(24.6)% |
|
|
364 |
|
183 |
98.9% |
|
|
366 |
|
454 |
(19.4)% |
|
|
Dollars |
$113,356 |
$136,884 |
(17.2)% |
|
$251,788 |
$97,590 |
158.0% |
|
$231,682 |
$283,528 |
(18.3)% |
|
|
Avg.
Price |
$647,749 |
$590,017 |
9.8% |
|
$691,725 |
$533,275 |
29.7% |
|
$633,011 |
$624,510 |
1.4% |
|
|
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 FOR UNCONSOLIDATED JOINT VENTURES
ONLY) |
(UNAUDITED) |
|
|
|
|
|
Twelve Months - October 31, 2018 |
|
|
|
|
|
Contracts
(1) |
Deliveries |
Contract |
|
|
Twelve Months Ended |
Twelve Months Ended |
Backlog |
|
|
October 31, |
October 31, |
October 31, |
|
|
2018 |
2017 |
% Change |
2018 |
|
2017 |
% Change |
2018 |
2017 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated
joint ventures) |
Home |
|
324 |
|
262 |
23.7% |
|
|
422 |
|
72 |
486.1% |
|
|
119 |
|
217 |
(45.2)% |
|
(NJ, PA) |
Dollars |
$231,189 |
$177,791 |
30.0% |
|
$293,503 |
$31,374 |
835.5% |
|
$94,366 |
$156,679 |
(39.8)% |
|
|
Avg.
Price |
$713,546 |
$678,592 |
5.2% |
|
$695,505 |
$435,748 |
59.6% |
|
$792,992 |
$722,027 |
9.8% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
75 |
|
55 |
36.4% |
|
|
62 |
|
65 |
(4.6)% |
|
|
24 |
|
30 |
(20.0)% |
|
(DE, MD, VA, WV) |
Dollars |
$59,967 |
$30,866 |
94.3% |
|
$52,237 |
$41,233 |
26.7% |
|
$18,839 |
$19,721 |
(4.5)% |
|
|
Avg.
Price |
$799,560 |
$561,200 |
42.5% |
|
$842,532 |
$634,354 |
32.8% |
|
$784,958 |
$657,365 |
19.4% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
39 |
|
49 |
(20.4)% |
|
|
57 |
|
34 |
67.6% |
|
|
9 |
|
27 |
(66.7)% |
|
(IL, OH) |
Dollars |
$25,807 |
$34,833 |
(25.9)% |
|
$38,449 |
$25,704 |
49.6% |
|
$6,076 |
$18,718 |
(67.5)% |
|
|
Avg.
Price |
$661,718 |
$710,882 |
(6.9)% |
|
$674,544 |
$756,004 |
(10.8)% |
|
$675,111 |
$693,259 |
(2.6)% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
203 |
|
139 |
46.0% |
|
|
159 |
|
149 |
6.7% |
|
|
122 |
|
78 |
56.4% |
|
(FL, GA, SC) |
Dollars |
$98,904 |
$60,451 |
63.6% |
|
$72,460 |
$67,364 |
7.6% |
|
$63,254 |
$36,811 |
71.8% |
|
|
Avg.
Price |
$487,212 |
$434,903 |
12.0% |
|
$455,723 |
$452,106 |
0.8% |
|
$518,475 |
$471,936 |
9.9% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
158 |
|
82 |
92.7% |
|
|
148 |
|
32 |
362.5% |
|
|
67 |
|
57 |
17.5% |
|
(AZ, TX) |
Dollars |
$93,501 |
$50,888 |
83.7% |
|
$86,288 |
$22,113 |
290.2% |
|
$40,465 |
$33,252 |
21.7% |
|
|
Avg.
Price |
$591,778 |
$620,585 |
(4.6)% |
|
$583,027 |
$691,030 |
(15.6)% |
|
$603,955 |
$583,368 |
3.5% |
|
West |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
116 |
|
154 |
(24.7)% |
|
|
136 |
|
195 |
(30.3)% |
|
|
25 |
|
45 |
(44.4)% |
|
(CA) |
Dollars |
$47,377 |
$81,709 |
(42.0)% |
|
$57,042 |
$122,785 |
(53.5)% |
|
$8,682 |
$18,347 |
(52.7)% |
|
|
Avg.
Price |
$408,422 |
$530,578 |
(23.0)% |
|
$419,426 |
$629,669 |
(33.4)% |
|
$347,280 |
$407,711 |
(14.8)% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
915 |
|
741 |
23.5% |
|
|
984 |
|
547 |
79.9% |
|
|
366 |
|
454 |
(19.4)% |
|
|
Dollars |
$556,745 |
$436,538 |
27.5% |
|
$599,979 |
$310,573 |
93.2% |
|
$231,682 |
$283,528 |
(18.3)% |
|
|
Avg.
Price |
$608,464 |
$589,120 |
3.3% |
|
$609,735 |
$567,774 |
7.4% |
|
$633,011 |
$624,510 |
1.4% |
|
|
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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