Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national
homebuilder, reported results for its fiscal third quarter and nine
months ended July 31, 2020.
RESULTS FOR THE THREE-MONTH AND
NINE-MONTH PERIODS ENDED JULY 31, 2020:
- Total revenues increased 30.3% to
$628.1 million in the third quarter of fiscal 2020, compared with
$482.0 million in the same period of the prior year. For the nine
months ended July 31, 2020, total revenues increased 27.4% to $1.66
billion compared with $1.30 billion in the same period during the
prior fiscal year.
- Homebuilding gross margin
percentage, after cost of sales interest expense and land charges,
was 13.6% for the three months ended July 31, 2020 compared with
14.0% during the same quarter a year ago. During the first nine
months of fiscal 2020, homebuilding gross margin percentage, after
cost of sales interest expense and land charges, was 13.7% compared
with 14.0% during the same period last year.
- Homebuilding gross margin, before
cost of sales interest expense and land charges, was $106.3
million, or 17.5% of sale of homes revenues, during the fiscal 2020
third quarter compared with $85.9 million, or 18.4% of sale of
homes revenues, in last year’s third quarter. For both the nine
months ended July 31, 2020 and the nine months ended July 31, 2019,
homebuilding gross margin percentage, before cost of sales interest
expense and land charges, was 17.7%.
- Total SG&A, including $2.9
million of severance expenses related to organizational changes,
was $59.9 million, or 9.5% of total revenues, in the fiscal 2020
third quarter compared with $58.5 million, or 12.1% of total
revenues, in the previous year’s third quarter. During the first
nine months of fiscal 2020, total SG&A was $176.2 million, or
10.6% of total revenues, compared with $179.3 million, or 13.8% of
total revenues, in the same period of the prior fiscal year.
- Interest incurred (some of which
was expensed and some of which was capitalized) was $45.1 million
for the third quarter of fiscal 2020 compared with $42.1 million
during the third quarter of fiscal 2019. For the nine months ended
July 31, 2020, interest incurred (some of which was expensed and
some of which was capitalized) was $134.8 million compared with
$122.3 million during the same period last year.
- Income from unconsolidated joint
ventures was $5.7 million for the third quarter ended July 31, 2020
compared with $3.7 million in the fiscal 2019 third quarter. For
the first nine months of fiscal 2020, income from unconsolidated
joint ventures was $13.4 million compared with $20.6 million in the
same period a year ago.
- Income before income taxes for the third quarter of fiscal 2020
was $16.2 million compared with a loss of $7.1 million in the third
quarter of the prior fiscal year. For the first nine months of
fiscal 2020, income before income taxes was $13.0 million compared
with a loss of $39.1 million during the same period of fiscal
2019.
- Adjusted pretax income, which is
income before income taxes, excluding land-related charges, joint
venture write-downs and gain on extinguishment of debt, improved to
$14.5 million in the third quarter of fiscal 2020 compared with a
loss before these items of $4.8 million in the fiscal 2019 third
quarter. For the nine months ended July 31, 2020, income before
income taxes, excluding land-related charges, joint venture
write-downs and gain on extinguishment of debt, was $5.8 million
compared with a loss before these items of $34.6 million during the
same period in fiscal 2019.
- Net income was $15.4 million, or
$2.27 per common share, for the three months ended July 31, 2020
compared with a net loss of $7.6 million, or $1.27 per common
share, in the third quarter of the previous fiscal year. For the
first nine months of fiscal 2020, net income was $10.3 million, or
$1.52 per common share, compared with a net loss of $40.3 million,
or $6.76 per common share, in the same period during fiscal
2019.
- EBITDA increased 88.0% to $66.5
million for the third quarter of fiscal 2020 compared with $35.3
million in the same quarter of the prior year. For the first nine
months of fiscal 2020, EBITDA was $154.3 million, a 107.6%
increase, compared with $74.3 million in the first nine months of
fiscal 2019.
- Financial services income before
income taxes was $10.8 million for the third quarter of fiscal 2020
compared with $3.8 million in the third quarter of fiscal 2019. For
the first nine months of fiscal 2020, financial services income
before income taxes was $20.0 million compared with $8.6 million in
the same period one year ago.
- Consolidated contracts per
community increased 72.7% to 19.0 contracts per community for the
third quarter ended July 31, 2020 compared with 11.0 contracts per
community in last year’s third quarter. Contracts per community,
including domestic unconsolidated joint ventures(1), increased
67.9% to 17.8 for the third quarter of fiscal 2020 compared with
10.6 for the third quarter of fiscal 2019.
- The number of consolidated
contracts increased 46.9% to 2,226 homes during the fiscal 2020
third quarter, compared with 1,515 homes in last year’s third
quarter. The number of contracts, including domestic unconsolidated
joint ventures, for the three months ended July 31, 2020, increased
42.9% to 2,415 homes from 1,690 homes during the same quarter a
year ago.
- For the first nine months of fiscal
2020, the number of consolidated contracts increased 26.0% to 5,035
homes compared with 3,995 homes in the first nine months of fiscal
2019. The number of contracts, including domestic unconsolidated
joint ventures, for the nine months ended July 31, 2020, increased
23.4% to 5,549 homes from 4,497 homes during the same period a year
ago.
- Consolidated community count was
117 as of July 31, 2020, compared with 138 communities at the end
of the previous year’s third quarter. The decline was primarily a
result of selling out of communities at a faster than anticipated
pace, 14 delayed community openings, primarily related to COVID-19,
and contributing four consolidated communities to unconsolidated
joint ventures earlier this year. As of the end of the third
quarter of fiscal 2020, community count, including domestic
unconsolidated joint ventures, was 136 communities, compared with
159 communities at July 31, 2019.
- For August 2020, consolidated
contracts per community increased 106.3% to 6.6 compared with 3.2
for the same month one year ago. During August 2020, the number of
consolidated contracts increased 65.2% to 735 homes from 445 homes
in August 2019.
- The dollar value of consolidated
contract backlog, as of July 31, 2020, increased 17.1% to $1.23
billion compared with $1.05 billion as of July 31, 2019. The dollar
value of contract backlog, including domestic unconsolidated joint
ventures, as of July 31, 2020, was $1.39 billion compared with
$1.28 billion as of July 31, 2019.
- Consolidated deliveries were 1,553
homes in the fiscal 2020 third quarter, a 31.1% increase compared
with 1,185 homes in the previous year’s third quarter. For the
fiscal 2020 third quarter, deliveries, including domestic
unconsolidated joint ventures, increased 29.3% to 1,781 homes
compared with 1,377 homes during the third quarter of fiscal
2019.
- For the first nine months of fiscal
2020, consolidated deliveries increased 27.1% to 4,114 homes
compared with 3,237 homes in the first nine months of the previous
year. For the first nine months of fiscal 2020, deliveries,
including domestic unconsolidated joint ventures, increased 24.0%
to 4,679 homes compared with 3,772 homes during the same period of
fiscal 2019.
- The contract cancellation rate for
consolidated contracts was 18% for the third quarter ended July 31,
2020 compared with 19% in the fiscal 2019 third quarter. The
contract cancellation rate for contracts including domestic
unconsolidated joint ventures was 18% for the third quarter of
fiscal 2020 compared with 19% in the third quarter of the prior
year.
(1)When we refer to “Domestic Unconsolidated
Joint Ventures”, we are excluding results from our single community
unconsolidated joint venture in the Kingdom of Saudi Arabia
(KSA).
LIQUIDITY AND INVENTORY AS OF JULY 31,
2020:
- Total liquidity at the end of the
of the third quarter of fiscal 2020 was $334.3 million, after
repurchasing $25.5 million of face value of 10.0% Senior Secured
Notes due 2022 for $21.4 million of cash, leaving a balance of
$111.2 million on those notes. The transaction resulted in a $4.1
million gain on extinguishment of debt.
- During the third quarter of fiscal
2020, land and land development spending was $162.6 million, an
increase compared with $147.4 million in last year’s third quarter.
For the nine months ended July 31, 2020, land and land development
spending was $394.9 million compared with $400.0 million for the
same period one year ago.
- In the third quarter of fiscal
2020, 1,700 lots were put under option or acquired in 21
consolidated communities.
- As of July 31, 2020, consolidated
lots controlled totaled 25,748, which, based on trailing
twelve-month deliveries, equaled a 4.4 years’ supply.
COMMENTS FROM MANAGEMENT: |
“During the third quarter of fiscal 2020 we saw
a significant improvement in contracts, revenues, EBITDA, pretax
income and liquidity as compared to the prior year’s third quarter
and are pleased with our results,” stated Ara K. Hovnanian,
Chairman of the Board, President and Chief Executive Officer. “Amid
the broader economic uncertainties related to the COVID-19
pandemic, the overall demand for new homes continues to be robust
due to historically low mortgage rates, a nationwide low supply of
existing homes and a strong consumer desire for more indoor and
outdoor space. Given the recent strength of our operating results
and our improved contract pace, we remain committed to pursuing our
growth plans,” said Mr. Hovnanian.
“Reacting to slower demand in the early stages
of the COVID-19 crisis, we offered consumers additional incentives
on spec homes deliverable in the third quarter. While these
discounts adversely impacted our fiscal 2020 third quarter gross
margin, our volume of home sales increased and resulted in higher
third quarter profitability. Home demand began rebounding in May.
Since June, we pivoted to increasing home prices in virtually all
our markets. Going forward, these home price increases should both
offset potential cost increases and result in improvements in gross
margins. Assuming no material changes in market conditions, we
expect to achieve meaningful improvements in revenues, EBITDA and
profitability during fiscal 2021. We control virtually all the lots
needed to meet the growth in deliveries we expect next year,”
concluded Mr. Hovnanian.
Hovnanian Enterprises will webcast its fiscal
2020 third quarter financial results conference call at 11:00 a.m.
E.T. on Thursday, September 3, 2020. The webcast can be accessed
live through the “Investor Relations” section of Hovnanian
Enterprises’ website at http://www.khov.com. For those who are not
available to listen to the live webcast, an archive of the
broadcast will be available under the “Past Events” section of the
Investor Relations page on the Hovnanian website at
http://www.khov.com. The archive will be available for 12
months.
ABOUT HOVNANIAN ENTERPRISES,
INC.: |
Hovnanian Enterprises, Inc., founded in 1959 by
Kevork S. Hovnanian, is headquartered in Matawan, New Jersey and,
through its subsidiaries, is one of the nation’s largest
homebuilders with operations in Arizona, California, Delaware,
Florida, Georgia, Illinois, Maryland, New Jersey, Ohio,
Pennsylvania, South Carolina, Texas, Virginia, Washington, D.C. and
West Virginia. The Company’s homes are marketed and sold under the
trade name K. Hovnanian® Homes. Additionally, the Company’s
subsidiaries, as developers of K. Hovnanian’s® Four Seasons
communities, make the Company one of the nation’s largest builders
of active lifestyle communities.
Additional information on Hovnanian Enterprises,
Inc. can be accessed through the “Investor Relations” section of
the Hovnanian Enterprises’ website at http://www.khov.com. To be
added to Hovnanian's investor e-mail list, please send an e-mail to
IR@khov.com or sign up at http://www.khov.com.
NON-GAAP FINANCIAL MEASURES: |
|
Consolidated earnings before interest
expense and income taxes (“EBIT”) and before depreciation and
amortization (“EBITDA”) and before inventory impairment loss and
land option write-offs and gain on extinguishment of debt
(“Adjusted EBITDA”) are not U.S. generally accepted accounting
principles (GAAP) financial measures. The most directly comparable
GAAP financial measure is net income (loss). The reconciliation for
historical periods of EBIT, EBITDA and Adjusted EBITDA to net
income (loss) is presented in a table attached to this earnings
release.
Homebuilding gross margin, before cost
of sales interest expense and land charges, and homebuilding gross
margin percentage, before cost of sales interest expense and land
charges, are non-GAAP financial measures. The most directly
comparable GAAP financial measures are homebuilding gross margin
and homebuilding gross margin percentage, respectively. The
reconciliation for historical periods of homebuilding gross margin,
before cost of sales interest expense and land charges, and
homebuilding gross margin percentage, before cost of sales interest
expense and land charges, to homebuilding gross margin and
homebuilding gross margin percentage, respectively, is presented in
a table attached to this earnings release.
Adjusted pretax income,
which is defined as income (loss) before income taxes excluding
land-related charges, joint venture write-downs and gain on
extinguishment of debt is a non-GAAP financial measure. The most
directly comparable GAAP financial measure is income (loss) before
income taxes. The reconciliation for historical periods of adjusted
pretax income to income (loss) before income taxes is presented in
a table attached to this earnings release.
Total liquidity is comprised of $198.1
million of cash and cash equivalents, $11.2 million of restricted
cash required to collateralize letters of credit and $125.0 million
availability under the senior secured revolving credit facility as
of July 31, 2020.
FORWARD-LOOKING STATEMENTS
All statements in this press release
that are not historical facts should be considered as
“Forward-Looking Statements” within the meaning of the “Safe
Harbor” provisions of the Private Securities Litigation Reform Act
of 1995. Such statements involve known and unknown risks,
uncertainties and other factors that may cause actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such
forward-looking statements include but are not limited to
statements related to the Company’s goals and expectations with
respect to its financial results for future financial periods.
Although we believe that our plans, intentions and expectations
reflected in, or suggested by, such forward-looking statements are
reasonable, we can give no assurance that such plans, intentions or
expectations will be achieved. By their nature, forward-looking
statements: (i) speak only as of the date they are made, (ii) are
not guarantees of future performance or results and (iii) are
subject to risks, uncertainties and assumptions that are difficult
to predict or quantify. Therefore, actual results could differ
materially and adversely from those forward-looking statements as a
result of a variety of factors. Such risks, uncertainties and other
factors include, but are not limited to, (1) the material and
adverse disruption, and the expected continued disruption, to our
business caused by the present outbreak and worldwide spread of
COVID-19 and the measures that international, federal, state and
local governments, agencies, law enforcement and/or health
authorities implement to address it; (2) changes in general and
local economic, industry and business conditions and impacts of a
significant homebuilding downturn; (3) adverse weather and other
environmental conditions and natural disasters; (4) high leverage
and restrictions on the Company’s operations and activities imposed
by the agreements governing the Company’s outstanding indebtedness;
(5) availability and terms of financing to the Company; (6) the
Company’s sources of liquidity; (7) changes in credit ratings; (8)
the seasonality of the Company’s business; (9) the availability and
cost of suitable land and improved lots and sufficient liquidity to
invest in such land and lots; (10) shortages in, and price
fluctuations of, raw materials and labor including due to changes
in trade policies, such as the imposition of tariffs and duties on
homebuilding materials and products, and related trade disputes
with and retaliatory measures taken by other countries; (11)
reliance on, and the performance of, subcontractors; (12) 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; (13)
increases in cancellations of agreements of sale; (14) fluctuations
in interest rates and the availability of mortgage financing; (15)
changes in tax laws affecting the after-tax costs of owning a home;
(16) operations through unconsolidated joint ventures with third
parties; (17) government regulation, including regulations
concerning development of land, the homebuilding, sales and
customer financing processes, tax laws and the environment; (18)
legal claims brought against us and not resolved in our favor, such
as product liability litigation, warranty claims and claims made by
mortgage investors; (19) levels of competition; (20) successful
identification and integration of acquisitions; (21) significant
influence of the Company’s controlling stockholders; (22)
availability of net operating loss carryforwards; (23) utility
shortages and outages or rate fluctuations; (24) geopolitical
risks, terrorist acts and other acts of war; (25) diseases,
pandemics or other severe public health events; (26) loss of key
management personnel or failure to attract qualified personnel;
(27) information technology failures and data security breaches;
(28) negative publicity; and (29) certain risks, uncertainties and
other factors described in detail in the Company’s Annual Report on
Form 10-K for the fiscal year ended October 31, 2019 and the
Company’s Quarterly Reports on Form 10-Q for the quarterly periods
during fiscal 2020 and subsequent filings with the Securities and
Exchange Commission. Except as otherwise required by applicable
securities laws, we undertake no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events, changed circumstances or any other
reason.
|
Hovnanian
Enterprises, Inc. |
July 31,
2020 |
Statements of
consolidated operations |
(In thousands,
except per share data) |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
July 31, |
|
July 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Total
revenues |
$628,136 |
|
|
$482,041 |
|
|
$1,660,543 |
|
|
$1,303,326 |
|
Costs and expenses
(1) |
|
621,633 |
|
|
|
492,847 |
|
|
|
1,674,340 |
|
|
|
1,362,964 |
|
Gain on
extinguishment of debt |
|
4,055 |
|
|
|
- |
|
|
|
13,337 |
|
|
|
- |
|
Income from
unconsolidated joint ventures |
|
5,658 |
|
|
|
3,742 |
|
|
|
13,419 |
|
|
|
20,556 |
|
Income (loss)
before income taxes |
|
16,216 |
|
|
|
(7,064 |
) |
|
|
12,959 |
|
|
|
(39,082 |
) |
Income tax
provision |
|
853 |
|
|
|
537 |
|
|
|
2,665 |
|
|
|
1,228 |
|
Net income
(loss) |
$15,363 |
|
|
$(7,601 |
) |
|
$10,294 |
|
|
$(40,310 |
) |
|
|
|
|
|
|
|
|
|
Per share
data: |
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
Net income (loss) per common share |
$2.27 |
|
|
$(1.27 |
) |
|
$1.52 |
|
|
$(6.76 |
) |
Weighted average number of common shares outstanding (2) |
|
6,201 |
|
|
|
5,971 |
|
|
|
6,178 |
|
|
|
5,964 |
|
Assuming
dilution: |
|
|
|
|
|
|
|
Net income (loss) per common share |
$2.16 |
|
|
$(1.27 |
) |
|
$1.44 |
|
|
$(6.76 |
) |
Weighted average number of common shares outstanding (2) |
|
6,518 |
|
|
|
5,971 |
|
|
|
6,502 |
|
|
|
5,964 |
|
|
|
|
|
|
|
|
|
|
(1)
Includes inventory impairment loss and land option write-offs. |
(2) For
periods with a net (loss), basic shares are used in accordance with
GAAP rules. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hovnanian
Enterprises, Inc. |
July 31,
2020 |
Reconciliation of
income (loss) before income taxes excluding land-related charges,
joint venture write-downs and gain on extinguishment of debt to
income (loss) before income taxes |
(In
thousands) |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
July 31, |
|
July 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Income (loss) before income
taxes |
|
$16,216 |
|
|
$(7,064 |
) |
|
$12,959 |
|
|
$(39,082 |
) |
Inventory impairment loss and
land option write-offs |
|
|
2,364 |
|
|
|
1,435 |
|
|
|
6,202 |
|
|
|
3,601 |
|
Unconsolidated joint venture
investment write-downs |
|
|
- |
|
|
|
854 |
|
|
|
- |
|
|
|
854 |
|
Gain on extinguishment of
debt |
|
|
(4,055 |
) |
|
|
- |
|
|
|
(13,337 |
) |
|
|
- |
|
Income (loss) before income
taxes excluding land-related charges, joint venture write-downs and
gain on extinguishment of debt (1) |
|
$14,525 |
|
|
$(4,775 |
) |
|
$5,824 |
|
|
$(34,627 |
) |
|
|
|
|
|
|
|
|
|
(1) Income (loss)
before income taxes excluding land-related charges, joint venture
write-downs and gain on extinguishment of debt is a non-GAAP
financial measure. The most directly comparable GAAP financial
measure is income (loss) before income taxes. |
|
|
Hovnanian
Enterprises, Inc. |
July 31,
2020 |
Gross margin |
(In
thousands) |
|
|
Homebuilding Gross Margin |
|
Homebuilding Gross Margin |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
July 31, |
|
July 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Sale of homes |
|
$605,933 |
|
|
$467,849 |
|
|
$1,608,513 |
|
|
$1,257,536 |
|
Cost of sales, excluding
interest expense and land charges (1) |
|
|
499,654 |
|
|
|
381,906 |
|
|
|
1,323,916 |
|
|
|
1,034,953 |
|
Homebuilding gross margin,
before cost of sales interest expense and land charges (2) |
|
|
106,279 |
|
|
|
85,943 |
|
|
|
284,597 |
|
|
|
222,583 |
|
Cost of sales interest
expense, excluding land sales interest expense |
|
|
21,794 |
|
|
|
18,824 |
|
|
|
58,467 |
|
|
|
42,964 |
|
Homebuilding gross margin,
after cost of sales interest expense, before land charges (2) |
|
|
84,485 |
|
|
|
67,119 |
|
|
|
226,130 |
|
|
|
179,619 |
|
Land charges |
|
|
2,364 |
|
|
|
1,435 |
|
|
|
6,202 |
|
|
|
3,601 |
|
Homebuilding gross margin |
|
$82,121 |
|
|
$65,684 |
|
|
$219,928 |
|
|
$176,018 |
|
|
|
|
|
|
|
|
|
|
Gross margin percentage |
|
|
13.6 |
% |
|
|
14.0 |
% |
|
|
13.7 |
% |
|
|
14.0 |
% |
Gross margin percentage,
before cost of sales interest expense and land charges (2) |
|
|
17.5 |
% |
|
|
18.4 |
% |
|
|
17.7 |
% |
|
|
17.7 |
% |
Gross margin percentage, after
cost of sales interest expense, before land charges (2) |
|
|
13.9 |
% |
|
|
14.3 |
% |
|
|
14.1 |
% |
|
|
14.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
Land Sales Gross Margin |
|
Land Sales Gross Margin |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
July 31, |
|
July 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Land and lot sales |
|
$25 |
|
|
$542 |
|
|
$100 |
|
|
$8,050 |
|
Land and lot sales cost of
sales, excluding interest and land charges (1) |
|
|
41 |
|
|
|
33 |
|
|
|
161 |
|
|
|
7,390 |
|
Land and lot sales gross
margin, excluding interest and land charges |
|
|
(16 |
) |
|
|
509 |
|
|
|
(61 |
) |
|
|
660 |
|
Land and lot sales
interest |
|
|
20 |
|
|
|
205 |
|
|
|
72 |
|
|
|
205 |
|
Land and lot sales gross
margin, including interest and excluding land charges |
|
$(36 |
) |
|
$304 |
|
|
$(133 |
) |
|
$455 |
|
|
|
|
|
|
|
|
|
|
(1) Does not
include cost associated with walking away from land options or
inventory impairment losses which are recorded as Inventory
impairment loss and land option write-offs in the Condensed
Consolidated Statements of Operations. |
(2) Homebuilding
gross margin, before cost of sales interest expense and land
charges, and homebuilding gross margin percentage, before cost of
sales interest expense and land charges, are non-GAAP financial
measures. The most directly comparable GAAP financial measures are
homebuilding gross margin and homebuilding gross margin percentage,
respectively. |
|
|
Hovnanian
Enterprises, Inc. |
July 31,
2020 |
Reconciliation of
adjusted EBITDA to net income (loss) (In thousands) |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
July 31, |
|
July 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Net income (loss) |
|
$15,363 |
|
|
$(7,601 |
) |
|
$10,294 |
|
|
$(40,310 |
) |
Income tax provision |
|
|
853 |
|
|
|
537 |
|
|
|
2,665 |
|
|
|
1,228 |
|
Interest expense |
|
|
48,886 |
|
|
|
41,406 |
|
|
|
137,483 |
|
|
|
110,482 |
|
EBIT (1) |
|
|
65,102 |
|
|
|
34,342 |
|
|
|
150,442 |
|
|
|
71,400 |
|
Depreciation and
amortization |
|
|
1,355 |
|
|
|
1,004 |
|
|
|
3,897 |
|
|
|
2,942 |
|
EBITDA (2) |
|
|
66,457 |
|
|
|
35,346 |
|
|
|
154,339 |
|
|
|
74,342 |
|
Inventory impairment loss and
land option write-offs |
|
|
2,364 |
|
|
|
1,435 |
|
|
|
6,202 |
|
|
|
3,601 |
|
Gain on extinguishment of
debt |
|
|
(4,055 |
) |
|
|
- |
|
|
|
(13,337 |
) |
|
|
- |
|
Adjusted EBITDA (3) |
|
$64,766 |
|
|
$36,781 |
|
|
$147,204 |
|
|
$77,943 |
|
|
|
|
|
|
|
|
|
|
Interest incurred |
|
$45,140 |
|
|
$42,104 |
|
|
$134,797 |
|
|
$122,340 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA to interest
incurred |
|
|
1.43 |
|
|
|
0.87 |
|
|
|
1.09 |
|
|
|
0.64 |
|
|
|
|
|
|
|
|
|
|
(1) EBIT is
a non-GAAP financial measure. The most directly comparable GAAP
financial measure is net income (loss). EBIT represents earnings
before interest expense and income taxes. |
(2) EBITDA
is a non-GAAP financial measure. The most directly comparable GAAP
financial measure is net income (loss). EBITDA represents earnings
before interest expense, income taxes, depreciation and
amortization. |
(3)
Adjusted EBITDA is a non-GAAP financial measure. The most directly
comparable GAAP financial measure is net income (loss). Adjusted
EBITDA represents earnings before interest expense, income taxes,
depreciation, amortization, inventory impairment loss and land
option write-offs and gain on extinguishment of debt. |
|
|
Hovnanian
Enterprises, Inc. |
July 31,
2020 |
Interest
incurred, expensed and capitalized |
(In
thousands) |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
July 31, |
|
July 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Interest capitalized at
beginning of period |
|
$67,744 |
|
|
$79,277 |
|
|
$71,264 |
|
|
$68,117 |
|
Plus interest incurred |
|
|
45,140 |
|
|
|
42,104 |
|
|
|
134,797 |
|
|
|
122,340 |
|
Less interest expensed |
|
|
48,886 |
|
|
|
41,406 |
|
|
|
137,483 |
|
|
|
110,482 |
|
Less interest contributed to
unconsolidated joint venture (1) |
|
|
- |
|
|
|
1,978 |
|
|
|
4,580 |
|
|
|
1,978 |
|
Interest capitalized at end of
period (2) |
|
$63,998 |
|
|
$77,997 |
|
|
$63,998 |
|
|
$77,997 |
|
|
|
|
|
|
|
|
|
|
(1) Represents
capitalized interest which was included as part of the assets
contributed to the joint venture the Company entered into in
December 2019. There was no impact to the Condensed Consolidated
Statement of Operations as a result of this transaction. |
(2) Capitalized
interest amounts are shown gross before allocating any portion of
impairments to capitalized interest. |
|
HOVNANIAN ENTERPRISES, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In Thousands)
|
|
July 31, |
|
|
October 31, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
(Unaudited) |
|
|
|
(1) |
|
ASSETS |
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$198,098 |
|
|
$130,976 |
|
Restricted cash and cash equivalents |
|
|
13,433 |
|
|
|
20,905 |
|
Inventories: |
|
|
|
|
|
|
Sold and unsold homes and lots under development |
|
|
928,840 |
|
|
|
993,647 |
|
Land and land options held for future development or sale |
|
|
89,903 |
|
|
|
108,565 |
|
Consolidated inventory not owned |
|
|
194,760 |
|
|
|
190,273 |
|
Total inventories |
|
|
1,213,503 |
|
|
|
1,292,485 |
|
Investments in and advances to unconsolidated joint ventures |
|
|
125,680 |
|
|
|
127,038 |
|
Receivables, deposits and notes, net |
|
|
37,328 |
|
|
|
44,914 |
|
Property, plant and equipment, net |
|
|
18,869 |
|
|
|
20,127 |
|
Prepaid expenses and other assets |
|
|
63,499 |
|
|
|
45,704 |
|
Total
homebuilding |
|
|
1,670,410 |
|
|
|
1,682,149 |
|
|
|
|
|
|
|
|
Financial services |
|
|
135,334 |
|
|
|
199,275 |
|
Total assets |
|
$1,805,744 |
|
|
$1,881,424 |
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
Nonrecourse mortgages secured by inventory, net of debt issuance
costs |
|
$179,767 |
|
|
$203,585 |
|
Accounts payable and other liabilities |
|
|
320,420 |
|
|
|
320,193 |
|
Customers’ deposits |
|
|
40,992 |
|
|
|
35,872 |
|
Liabilities from inventory not owned, net of debt issuance
costs |
|
|
144,922 |
|
|
|
141,033 |
|
Senior notes and credit facilities (net of discount, premium and
debt issuance costs) |
|
|
1,432,075 |
|
|
|
1,479,990 |
|
Accrued interest |
|
|
50,328 |
|
|
|
19,081 |
|
Total
homebuilding |
|
|
2,168,504 |
|
|
|
2,199,754 |
|
|
|
|
|
|
|
|
Financial services |
|
|
114,202 |
|
|
|
169,145 |
|
Income taxes payable |
|
|
2,557 |
|
|
|
2,301 |
|
Total liabilities |
|
|
2,285,263 |
|
|
|
2,371,200 |
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
Hovnanian Enterprises, Inc.
stockholders’ equity deficit: |
|
|
|
|
|
|
Preferred stock, $0.01 par value - authorized 100,000 shares;
issued and outstanding 5,600 shares with a liquidation preference
of $140,000 at July 31, 2020 and October 31, 2019 |
|
|
135,299 |
|
|
|
135,299 |
|
Common stock, Class A, $0.01 par value – authorized 16,000,000
shares; issued 5,984,678 shares at July 31, 2020 and 5,973,727
shares at October 31, 2019 |
|
|
60 |
|
|
|
60 |
|
Common stock, Class B, $0.01 par value (convertible to Class A at
time of sale) – authorized 2,400,000 shares; issued 652,154 shares
at July 31, 2020 and 650,363 shares at October 31, 2019 |
|
|
7 |
|
|
|
7 |
|
Paid in capital – common stock |
|
|
715,404 |
|
|
|
715,504 |
|
Accumulated deficit |
|
|
(1,215,679 |
) |
|
|
(1,225,973 |
) |
Treasury stock – at cost – 470,430 shares of Class A common stock
and 27,669 shares of Class B common stock at July 31, 2020 and
October 31, 2019 |
|
|
(115,360 |
) |
|
|
(115,360 |
) |
Total Hovnanian Enterprises, Inc. stockholders' equity deficit |
|
|
(480,269 |
) |
|
|
(490,463 |
) |
Noncontrolling interest in
consolidated joint ventures |
|
|
750 |
|
|
|
687 |
|
Total equity deficit |
|
|
(479,519 |
) |
|
|
(489,776 |
) |
Total liabilities and
equity |
|
$1,805,744 |
|
|
$1,881,424 |
|
(1) Derived from the audited balance
sheet as of October 31, 2019
HOVNANIAN ENTERPRISES, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In
Thousands Except Per Share Data)(Unaudited)
|
|
Three Months EndedJuly 31, |
|
|
Nine Months EndedJuly 31, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
Sale of homes |
|
$605,933 |
|
|
$467,849 |
|
|
$1,608,513 |
|
|
$1,257,536 |
|
Land sales and other revenues |
|
|
908 |
|
|
|
1,428 |
|
|
|
2,360 |
|
|
|
11,111 |
|
Total homebuilding |
|
|
606,841 |
|
|
|
469,277 |
|
|
|
1,610,873 |
|
|
|
1,268,647 |
|
Financial services |
|
|
21,295 |
|
|
|
12,764 |
|
|
|
49,670 |
|
|
|
34,679 |
|
Total revenues |
|
|
628,136 |
|
|
|
482,041 |
|
|
|
1,660,543 |
|
|
|
1,303,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales, excluding interest |
|
|
499,695 |
|
|
|
381,939 |
|
|
|
1,324,077 |
|
|
|
1,042,343 |
|
Cost of sales interest |
|
|
21,814 |
|
|
|
19,029 |
|
|
|
58,539 |
|
|
|
43,169 |
|
Inventory impairment loss and land option write-offs |
|
|
2,364 |
|
|
|
1,435 |
|
|
|
6,202 |
|
|
|
3,601 |
|
Total cost of sales |
|
|
523,873 |
|
|
|
402,403 |
|
|
|
1,388,818 |
|
|
|
1,089,113 |
|
Selling, general and administrative |
|
|
40,608 |
|
|
|
43,559 |
|
|
|
121,887 |
|
|
|
130,474 |
|
Total homebuilding expenses |
|
|
564,481 |
|
|
|
445,962 |
|
|
|
1,510,705 |
|
|
|
1,219,587 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial services |
|
|
10,493 |
|
|
|
8,927 |
|
|
|
29,677 |
|
|
|
26,079 |
|
Corporate general and administrative |
|
|
19,321 |
|
|
|
14,959 |
|
|
|
54,340 |
|
|
|
48,792 |
|
Other interest |
|
|
27,072 |
|
|
|
22,377 |
|
|
|
78,944 |
|
|
|
67,313 |
|
Other operations |
|
|
266 |
|
|
|
622 |
|
|
|
674 |
|
|
|
1,193 |
|
Total expenses |
|
|
621,633 |
|
|
|
492,847 |
|
|
|
1,674,340 |
|
|
|
1,362,964 |
|
Gain on extinguishment of
debt |
|
|
4,055 |
|
|
|
- |
|
|
|
13,337 |
|
|
|
- |
|
Income from unconsolidated
joint ventures |
|
|
5,658 |
|
|
|
3,742 |
|
|
|
13,419 |
|
|
|
20,556 |
|
Income (loss) before income
taxes |
|
|
16,216 |
|
|
|
(7,064 |
) |
|
|
12,959 |
|
|
|
(39,082 |
) |
State and federal income tax
provision: |
|
|
|
|
|
|
|
|
|
|
|
|
State |
|
|
853 |
|
|
|
537 |
|
|
|
2,665 |
|
|
|
1,228 |
|
Federal |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total income taxes |
|
|
853 |
|
|
|
537 |
|
|
|
2,665 |
|
|
|
1,228 |
|
Net income (loss) |
|
$15,363 |
|
|
$(7,601 |
) |
|
$10,294 |
|
|
$(40,310 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share |
|
$2.27 |
|
|
$(1.27 |
) |
|
$1.52 |
|
|
$(6.76 |
) |
Weighted-average number of common shares outstanding |
|
|
6,201 |
|
|
|
5,971 |
|
|
|
6,178 |
|
|
|
5,964 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assuming dilution: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share |
|
$2.16 |
|
|
$(1.27 |
) |
|
$1.44 |
|
|
$(6.76 |
) |
Weighted-average number of common shares outstanding |
|
|
6,518 |
|
|
|
5,971 |
|
|
|
6,502 |
|
|
|
5,964 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOVNANIAN
ENTERPRISES, INC. |
(DOLLARS
IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT
DATA EXCLUDES UNCONSOLIDATED JOINT VENTURES) |
(UNAUDITED) |
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Three Months Ended |
Three Months Ended |
Backlog |
|
|
July 31, |
July 31, |
July 31, |
|
|
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(NJ, PA) |
Home |
|
102 |
|
65 |
|
56.9% |
|
|
95 |
|
35 |
|
171.4% |
|
|
113 |
|
192 |
|
(41.1)% |
|
|
Dollars |
$51,586 |
$37,560 |
|
37.3% |
|
$41,354 |
$20,694 |
|
99.8% |
|
$61,002 |
$119,347 |
|
(48.9)% |
|
|
Avg. Price |
$505,745 |
$577,846 |
|
(12.5)% |
|
$435,305 |
$591,257 |
|
(26.4)% |
|
$539,841 |
$621,599 |
|
(13.2)% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(DE, MD, VA, WV) |
Home |
|
307 |
|
197 |
|
55.8% |
|
|
213 |
|
159 |
|
34.0% |
|
|
523 |
|
402 |
|
30.1% |
|
|
Dollars |
$152,511 |
$99,807 |
|
52.8% |
|
$111,160 |
$86,811 |
|
28.0% |
|
$269,972 |
$242,958 |
|
11.1% |
|
|
Avg. Price |
$496,775 |
$506,635 |
|
(1.9)% |
|
$521,878 |
$545,981 |
|
(4.4)% |
|
$516,199 |
$604,373 |
|
(14.6)% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(IL, OH) |
Home |
|
263 |
|
197 |
|
33.5% |
|
|
197 |
|
158 |
|
24.7% |
|
|
534 |
|
505 |
|
5.7% |
|
|
Dollars |
$79,394 |
$58,794 |
|
35.0% |
|
$62,901 |
$47,261 |
|
33.1% |
|
$149,016 |
$136,713 |
|
9.0% |
|
|
Avg. Price |
$301,878 |
$298,442 |
|
1.2% |
|
$319,294 |
$299,120 |
|
6.7% |
|
$279,056 |
$270,719 |
|
3.1% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(FL, GA, SC) |
Home |
|
172 |
|
147 |
|
17.0% |
|
|
155 |
|
121 |
|
28.1% |
|
|
304 |
|
296 |
|
2.7% |
|
|
Dollars |
$79,846 |
$58,648 |
|
36.1% |
|
$65,595 |
$50,217 |
|
30.6% |
|
$145,947 |
$128,571 |
|
13.5% |
|
|
Avg. Price |
$464,221 |
$398,966 |
|
16.4% |
|
$423,194 |
$415,017 |
|
2.0% |
|
$480,089 |
$434,361 |
|
10.5% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(AZ, TX) |
Home |
|
814 |
|
589 |
|
38.2% |
|
|
641 |
|
449 |
|
42.8% |
|
|
938 |
|
788 |
|
19.0% |
|
|
Dollars |
$260,891 |
$202,553 |
|
28.8% |
|
$214,608 |
$152,615 |
|
40.6% |
|
$308,918 |
$277,263 |
|
11.4% |
|
|
Avg. Price |
$320,506 |
$343,893 |
|
(6.8)% |
|
$334,802 |
$339,900 |
|
(1.5)% |
|
$329,337 |
$351,857 |
|
(6.4)% |
|
West |
|
|
|
|
|
|
|
|
|
|
(CA) |
Home |
|
568 |
|
320 |
|
77.5% |
|
|
252 |
|
263 |
|
(4.2)% |
|
|
644 |
|
372 |
|
73.1% |
|
|
Dollars |
$258,067 |
$131,483 |
|
96.3% |
|
$110,315 |
$110,251 |
|
0.1% |
|
$299,564 |
$149,654 |
|
100.2% |
|
|
Avg. Price |
$454,343 |
$410,884 |
|
10.6% |
|
$437,758 |
$419,205 |
|
4.4% |
|
$465,161 |
$402,296 |
|
15.6% |
|
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
2,226 |
|
1,515 |
|
46.9% |
|
|
1,553 |
|
1,185 |
|
31.1% |
|
|
3,056 |
|
2,555 |
|
19.6% |
|
|
Dollars |
$882,295 |
$588,845 |
|
49.8% |
|
$605,933 |
$467,849 |
|
29.5% |
|
$1,234,419 |
$1,054,506 |
|
17.1% |
|
|
Avg. Price |
$396,359 |
$388,676 |
|
2.0% |
|
$390,169 |
$394,809 |
|
(1.2)% |
|
$403,933 |
$412,723 |
|
(2.1)% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
189 |
|
175 |
|
8.0% |
|
|
228 |
|
192 |
|
18.8% |
|
|
264 |
|
357 |
|
(26.1)% |
|
|
Dollars |
$106,857 |
$107,579 |
|
(0.7)% |
|
$132,014 |
$119,704 |
|
10.3% |
|
$150,660 |
$226,778 |
|
(33.6)% |
|
|
Avg. Price |
$565,381 |
$614,737 |
|
(8.0)% |
|
$579,009 |
$623,458 |
|
(7.1)% |
|
$570,682 |
$635,232 |
|
(10.2)% |
|
Grand Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
2,415 |
|
1,690 |
|
42.9% |
|
|
1,781 |
|
1,377 |
|
29.3% |
|
|
3,320 |
|
2,912 |
|
14.0% |
|
|
Dollars |
$989,152 |
$696,424 |
|
42.0% |
|
$737,947 |
$587,553 |
|
25.6% |
|
$1,385,079 |
$1,281,284 |
|
8.1% |
|
|
Avg. Price |
$409,587 |
$412,085 |
|
(0.6)% |
|
$414,344 |
$426,691 |
|
(2.9)% |
|
$417,192 |
$440,001 |
|
(5.2)% |
|
|
|
|
|
|
|
|
|
|
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
185 |
|
97 |
|
90.7% |
|
|
0 |
|
3 |
|
(100.0)% |
|
|
766 |
|
131 |
|
484.7% |
|
|
Dollars |
$29,012 |
$15,346 |
|
89.1% |
|
$0 |
$719 |
|
(100.0)% |
|
$120,562 |
$20,800 |
|
479.6% |
|
|
Avg. Price |
$156,821 |
$158,205 |
|
(0.9)% |
|
$0 |
$239,667 |
|
(100.0)% |
|
$157,392 |
$158,777 |
|
(0.9)% |
|
|
DELIVERIES INCLUDE EXTRAS |
Notes: |
(1) Contracts are defined as new contracts signed during the period
for the purchase of homes, less cancellations of prior
contracts. |
(2) Represents home deliveries, home revenues and average prices
for our unconsolidated homebuilding joint ventures for the period.
We provide this data as a supplement to our consolidated results as
an indicator of the volume managed in our unconsolidated
homebuilding joint ventures. Our proportionate share of the income
or loss of unconsolidated homebuilding and land development joint
ventures is reflected as a separate line item in our consolidated
financial statements under “Income from unconsolidated joint
ventures”. |
|
|
HOVNANIAN
ENTERPRISES, INC. |
(DOLLARS
IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT
DATA EXCLUDES UNCONSOLIDATED JOINT VENTURES) |
(UNAUDITED) |
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Nine Months Ended |
Nine Months Ended |
Backlog |
|
|
July 31, |
July 31, |
July 31, |
|
|
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(NJ, PA) |
Home |
|
231 |
|
221 |
|
4.5% |
|
|
270 |
|
80 |
|
237.5% |
|
|
113 |
|
192 |
|
(41.1)% |
|
|
Dollars |
$107,855 |
$135,090 |
|
(20.2)% |
|
$133,409 |
$46,239 |
|
188.5% |
|
$61,002 |
$119,347 |
|
(48.9)% |
|
|
Avg. Price |
$466,905 |
$611,267 |
|
(23.6)% |
|
$494,107 |
$577,988 |
|
(14.5)% |
|
$539,841 |
$621,599 |
|
(13.2)% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(DE, MD, VA, WV) |
Home |
|
737 |
|
547 |
|
34.7% |
|
|
536 |
|
412 |
|
30.1% |
|
|
523 |
|
402 |
|
30.1% |
|
|
Dollars |
$374,865 |
$299,566 |
|
25.1% |
|
$288,426 |
$220,808 |
|
30.6% |
|
$269,972 |
$242,958 |
|
11.1% |
|
|
Avg. Price |
$508,636 |
$547,653 |
|
(7.1)% |
|
$538,108 |
$535,942 |
|
0.4% |
|
$516,199 |
$604,373 |
|
(14.6)% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(IL, OH) |
Home |
|
624 |
|
559 |
|
11.6% |
|
|
540 |
|
448 |
|
20.5% |
|
|
534 |
|
505 |
|
5.7% |
|
|
Dollars |
$192,171 |
$164,584 |
|
16.8% |
|
$165,836 |
$135,020 |
|
22.8% |
|
$149,016 |
$136,713 |
|
9.0% |
|
|
Avg. Price |
$307,966 |
$294,426 |
|
4.6% |
|
$307,104 |
$301,384 |
|
1.9% |
|
$279,056 |
$270,719 |
|
3.1% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(FL, GA, SC) |
Home |
|
436 |
|
397 |
|
9.8% |
|
|
379 |
|
352 |
|
7.7% |
|
|
304 |
|
296 |
|
2.7% |
|
|
Dollars |
$195,512 |
$163,880 |
|
19.3% |
|
$158,592 |
$143,446 |
|
10.6% |
|
$145,947 |
$128,571 |
|
13.5% |
|
|
Avg. Price |
$448,422 |
$412,796 |
|
8.6% |
|
$418,449 |
$407,517 |
|
2.7% |
|
$480,089 |
$434,361 |
|
10.5% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(AZ, TX) |
Home |
|
1,924 |
|
1,510 |
|
27.4% |
|
|
1,649 |
|
1,245 |
|
32.4% |
|
|
938 |
|
788 |
|
19.0% |
|
|
Dollars |
$626,817 |
$510,521 |
|
22.8% |
|
$548,796 |
$414,112 |
|
32.5% |
|
$308,918 |
$277,263 |
|
11.4% |
|
|
Avg. Price |
$325,788 |
$338,093 |
|
(3.6)% |
|
$332,805 |
$332,620 |
|
0.1% |
|
$329,337 |
$351,857 |
|
(6.4)% |
|
West |
|
|
|
|
|
|
|
|
|
|
(CA) |
Home |
|
1,083 |
|
761 |
|
42.3% |
|
|
740 |
|
700 |
|
5.7% |
|
|
644 |
|
372 |
|
73.1% |
|
|
Dollars |
$488,317 |
$309,117 |
|
58.0% |
|
$313,454 |
$297,911 |
|
5.2% |
|
$299,564 |
$149,654 |
|
100.2% |
|
|
Avg. Price |
$450,893 |
$406,198 |
|
11.0% |
|
$423,586 |
$425,587 |
|
(0.5)% |
|
$465,161 |
$402,296 |
|
15.6% |
|
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
5,035 |
|
3,995 |
|
26.0% |
|
|
4,114 |
|
3,237 |
|
27.1% |
|
|
3,056 |
|
2,555 |
|
19.6% |
|
|
Dollars |
$1,985,537 |
$1,582,758 |
|
25.4% |
|
$1,608,513 |
$1,257,536 |
|
27.9% |
|
$1,234,419 |
$1,054,506 |
|
17.1% |
|
|
Avg. Price |
$394,347 |
$396,185 |
|
(0.5)% |
|
$390,985 |
$388,488 |
|
0.6% |
|
$403,933 |
$412,723 |
|
(2.1)% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
514 |
|
502 |
|
2.4% |
|
|
565 |
|
535 |
|
5.6% |
|
|
264 |
|
357 |
|
(26.1)% |
|
|
Dollars |
$296,664 |
$318,350 |
|
(6.8)% |
|
$330,559 |
$338,599 |
|
(2.4)% |
|
$150,660 |
$226,778 |
|
(33.6)% |
|
|
Avg. Price |
$577,167 |
$634,163 |
|
(9.0)% |
|
$585,060 |
$632,895 |
|
(7.6)% |
|
$570,682 |
$635,232 |
|
(10.2)% |
|
Grand Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
5,549 |
|
4,497 |
|
23.4% |
|
|
4,679 |
|
3,772 |
|
24.0% |
|
|
3,320 |
|
2,912 |
|
14.0% |
|
|
Dollars |
$2,282,201 |
$1,901,108 |
|
20.0% |
|
$1,939,072 |
$1,596,135 |
|
21.5% |
|
$1,385,079 |
$1,281,284 |
|
8.1% |
|
|
Avg. Price |
$411,281 |
$422,750 |
|
(2.7)% |
|
$414,420 |
$423,153 |
|
(2.1)% |
|
$417,192 |
$440,001 |
|
(5.2)% |
|
|
|
|
|
|
|
|
|
|
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
564 |
|
133 |
|
324.1% |
|
|
0 |
|
7 |
|
(100.0)% |
|
|
766 |
|
131 |
|
484.7% |
|
|
Dollars |
$88,246 |
$21,426 |
|
311.9% |
|
$0 |
$1,627 |
|
(100.0)% |
|
$120,562 |
$20,800 |
|
479.6% |
|
|
Avg. Price |
$156,465 |
$161,101 |
|
(2.9)% |
|
$0 |
$232,383 |
|
(100.0)% |
|
$157,392 |
$158,777 |
|
(0.9)% |
|
|
DELIVERIES INCLUDE EXTRAS |
Notes: |
(1) Contracts are defined as new contracts signed during the period
for the purchase of homes, less cancellations of prior
contracts. |
(2) Represents home deliveries, home revenues and average prices
for our unconsolidated homebuilding joint ventures for the period.
We provide this data as a supplement to our consolidated results as
an indicator of the volume managed in our unconsolidated
homebuilding joint ventures. Our proportionate share of the income
or loss of unconsolidated homebuilding and land development joint
ventures is reflected as a separate line item in our consolidated
financial statements under “Income from unconsolidated joint
ventures”. |
|
|
HOVNANIAN
ENTERPRISES, INC. |
(DOLLARS
IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT
DATA UNCONSOLIDATED JOINT VENTURES ONLY) |
(UNAUDITED) |
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Three Months Ended |
Three Months Ended |
Backlog |
|
|
July 31, |
July 31, |
July 31, |
|
|
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
39 |
|
65 |
|
(40.0)% |
|
|
67 |
|
62 |
|
8.1% |
|
|
33 |
|
111 |
|
(70.3)% |
|
(excluding KSA JV) |
Dollars |
$33,759 |
$52,932 |
|
(36.2)% |
|
$50,895 |
$49,496 |
|
2.8% |
|
$31,571 |
$92,909 |
|
(66.0)% |
|
(NJ, PA) |
Avg. Price |
$865,615 |
$814,338 |
|
6.3% |
|
$759,627 |
$798,323 |
|
(4.8)% |
|
$956,697 |
$837,018 |
|
14.3% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
36 |
|
9 |
|
300.0% |
|
|
33 |
|
19 |
|
73.7% |
|
|
48 |
|
36 |
|
33.3% |
|
(DE, MD, VA, WV) |
Dollars |
$17,349 |
$4,490 |
|
286.4% |
|
$16,665 |
$13,847 |
|
20.4% |
|
$23,817 |
$21,075 |
|
13.0% |
|
|
Avg. Price |
$481,917 |
$498,889 |
|
(3.4)% |
|
$505,000 |
$728,789 |
|
(30.7)% |
|
$496,188 |
$585,417 |
|
(15.2)% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
1 |
|
5 |
|
(80.0)% |
|
|
4 |
|
8 |
|
(50.0)% |
|
|
0 |
|
2 |
|
(100.0)% |
|
(IL, OH) |
Dollars |
$461 |
$2,509 |
|
(81.6)% |
|
$1,825 |
$4,487 |
|
(59.3)% |
|
$0 |
$885 |
|
(100.0)% |
|
|
Avg. Price |
$461,000 |
$501,800 |
|
(8.1)% |
|
$456,250 |
$560,875 |
|
(18.7)% |
|
$0 |
$442,500 |
|
(100.0)% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
66 |
|
39 |
|
69.2% |
|
|
74 |
|
46 |
|
60.9% |
|
|
129 |
|
117 |
|
10.3% |
|
(FL, GA, SC) |
Dollars |
$31,843 |
$20,919 |
|
52.2% |
|
$35,528 |
$23,064 |
|
54.0% |
|
$64,865 |
$64,147 |
|
1.1% |
|
|
Avg. Price |
$482,470 |
$536,385 |
|
(10.1)% |
|
$480,108 |
$501,391 |
|
(4.2)% |
|
$502,829 |
$548,265 |
|
(8.3)% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
31 |
|
24 |
|
29.2% |
|
|
31 |
|
37 |
|
(16.2)% |
|
|
46 |
|
55 |
|
(16.4)% |
|
(AZ, TX) |
Dollars |
$17,928 |
$15,072 |
|
18.9% |
|
$20,141 |
$21,841 |
|
(7.8)% |
|
$27,759 |
$34,764 |
|
(20.2)% |
|
|
Avg. Price |
$578,323 |
$628,000 |
|
(7.9)% |
|
$649,710 |
$590,297 |
|
10.1% |
|
$603,457 |
$632,073 |
|
(4.5)% |
|
West |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
16 |
|
33 |
|
(51.5)% |
|
|
19 |
|
20 |
|
(5.0)% |
|
|
8 |
|
36 |
|
(77.8)% |
|
(CA) |
Dollars |
$5,517 |
$11,657 |
|
(52.7)% |
|
$6,960 |
$6,969 |
|
(0.1)% |
|
$2,648 |
$12,998 |
|
(79.6)% |
|
|
Avg. Price |
$344,813 |
$353,242 |
|
(2.4)% |
|
$366,316 |
$348,450 |
|
5.1% |
|
$331,000 |
$361,056 |
|
(8.3)% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
189 |
|
175 |
|
8.0% |
|
|
228 |
|
192 |
|
18.8% |
|
|
264 |
|
357 |
|
(26.1)% |
|
|
Dollars |
$106,857 |
$107,579 |
|
(0.7)% |
|
$132,014 |
$119,704 |
|
10.3% |
|
$150,660 |
$226,778 |
|
(33.6)% |
|
|
Avg. Price |
$565,381 |
$614,737 |
|
(8.0)% |
|
$579,009 |
$623,458 |
|
(7.1)% |
|
$570,682 |
$635,232 |
|
(10.2)% |
|
|
|
|
|
|
|
|
|
|
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
185 |
|
97 |
|
90.7% |
|
|
0 |
|
3 |
|
(100.0)% |
|
|
766 |
|
131 |
|
484.7% |
|
|
Dollars |
$29,012 |
$15,346 |
|
89.1% |
|
$0 |
$719 |
|
(100.0)% |
|
$120,562 |
$20,800 |
|
479.6% |
|
|
Avg. Price |
$156,821 |
$158,205 |
|
(0.9)% |
|
$0 |
$239,667 |
|
(100.0)% |
|
$157,392 |
$158,777 |
|
(0.9)% |
|
|
DELIVERIES INCLUDE EXTRAS |
Notes: |
(1) Contracts are defined as new contracts signed during the period
for the purchase of homes, less cancellations of prior
contracts. |
(2) Represents home deliveries, home revenues and average prices
for our unconsolidated homebuilding joint ventures for the period.
We provide this data as a supplement to our consolidated results as
an indicator of the volume managed in our unconsolidated
homebuilding joint ventures. Our proportionate share of the income
or loss of unconsolidated homebuilding and land development joint
ventures is reflected as a separate line item in our consolidated
financial statements under “Income from unconsolidated joint
ventures”. |
|
|
HOVNANIAN
ENTERPRISES, INC. |
(DOLLARS
IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT
DATA UNCONSOLIDATED JOINT VENTURES ONLY) |
(UNAUDITED) |
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Nine Months Ended |
Nine Months Ended |
Backlog |
|
|
July 31, |
July 31, |
July 31, |
|
|
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
130 |
|
188 |
|
(30.9)% |
|
|
173 |
|
191 |
|
(9.4)% |
|
|
33 |
|
111 |
|
(70.3)% |
|
(excluding KSA JV) |
Dollars |
$104,142 |
$150,396 |
|
(30.8)% |
|
$136,250 |
$150,853 |
|
(9.7)% |
|
$31,571 |
$92,909 |
|
(66.0)% |
|
(NJ, PA) |
Avg. Price |
$801,092 |
$799,979 |
|
0.1% |
|
$787,572 |
$789,806 |
|
(0.3)% |
|
$956,697 |
$837,018 |
|
14.3% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
70 |
|
26 |
|
169.2% |
|
|
64 |
|
43 |
|
48.8% |
|
|
48 |
|
36 |
|
33.3% |
|
(DE, MD, VA, WV) |
Dollars |
$35,223 |
$19,158 |
|
83.9% |
|
$32,381 |
$33,267 |
|
(2.7)% |
|
$23,817 |
$21,075 |
|
13.0% |
|
|
Avg. Price |
$503,182 |
$736,846 |
|
(31.7)% |
|
$505,953 |
$773,651 |
|
(34.6)% |
|
$496,188 |
$585,417 |
|
(15.2)% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
11 |
|
12 |
|
(8.3)% |
|
|
14 |
|
19 |
|
(26.3)% |
|
|
0 |
|
2 |
|
(100.0)% |
|
(IL, OH) |
Dollars |
$5,109 |
$6,472 |
|
(21.1)% |
|
$6,394 |
$11,663 |
|
(45.2)% |
|
$0 |
$885 |
|
(100.0)% |
|
|
Avg. Price |
$464,455 |
$539,333 |
|
(13.9)% |
|
$456,714 |
$613,842 |
|
(25.6)% |
|
$0 |
$442,500 |
|
(100.0)% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
185 |
|
122 |
|
51.6% |
|
|
179 |
|
127 |
|
40.9% |
|
|
129 |
|
117 |
|
10.3% |
|
(FL, GA, SC) |
Dollars |
$90,547 |
$65,530 |
|
38.2% |
|
$86,255 |
$64,638 |
|
33.4% |
|
$64,865 |
$64,147 |
|
1.1% |
|
|
Avg. Price |
$489,442 |
$537,131 |
|
(8.9)% |
|
$481,872 |
$508,961 |
|
(5.3)% |
|
$502,829 |
$548,265 |
|
(8.3)% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
76 |
|
86 |
|
(11.6)% |
|
|
75 |
|
98 |
|
(23.5)% |
|
|
46 |
|
55 |
|
(16.4)% |
|
(AZ, TX) |
Dollars |
$47,147 |
$52,455 |
|
(10.1)% |
|
$47,706 |
$58,155 |
|
(18.0)% |
|
$27,759 |
$34,764 |
|
(20.2)% |
|
|
Avg. Price |
$620,355 |
$609,942 |
|
1.7% |
|
$636,080 |
$593,418 |
|
7.2% |
|
$603,457 |
$632,073 |
|
(4.5)% |
|
West |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
42 |
|
68 |
|
(38.2)% |
|
|
60 |
|
57 |
|
5.3% |
|
|
8 |
|
36 |
|
(77.8)% |
|
(CA) |
Dollars |
$14,496 |
$24,339 |
|
(40.4)% |
|
$21,573 |
$20,023 |
|
7.7% |
|
$2,648 |
$12,998 |
|
(79.6)% |
|
|
Avg. Price |
$345,143 |
$357,926 |
|
(3.6)% |
|
$359,550 |
$351,281 |
|
2.4% |
|
$331,000 |
$361,056 |
|
(8.3)% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
514 |
|
502 |
|
2.4% |
|
|
565 |
|
535 |
|
5.6% |
|
|
264 |
|
357 |
|
(26.1)% |
|
|
Dollars |
$296,664 |
$318,350 |
|
(6.8)% |
|
$330,559 |
$338,599 |
|
(2.4)% |
|
$150,660 |
$226,778 |
|
(33.6)% |
|
|
Avg. Price |
$577,167 |
$634,163 |
|
(9.0)% |
|
$585,060 |
$632,895 |
|
(7.6)% |
|
$570,682 |
$635,232 |
|
(10.2)% |
|
|
|
|
|
|
|
|
|
|
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
564 |
|
133 |
|
324.1% |
|
|
0 |
|
7 |
|
(100.0)% |
|
|
766 |
|
131 |
|
484.7% |
|
|
Dollars |
$88,246 |
$21,426 |
|
311.9% |
|
$0 |
$1,627 |
|
(100.0)% |
|
$120,562 |
$20,800 |
|
479.6% |
|
|
Avg. Price |
$156,465 |
$161,101 |
|
(2.9)% |
|
$0 |
$232,383 |
|
(100.0)% |
|
$157,392 |
$158,777 |
|
(0.9)% |
|
|
DELIVERIES INCLUDE EXTRAS |
Notes: |
(1) Contracts are defined as new contracts signed during the period
for the purchase of homes, less cancellations of prior
contracts. |
(2) Represents home deliveries, home revenues and average prices
for our unconsolidated homebuilding joint ventures for the period.
We provide this data as a supplement to our consolidated results as
an indicator of the volume managed in our unconsolidated
homebuilding joint ventures. Our proportionate share of the income
or loss of unconsolidated homebuilding and land development joint
ventures is reflected as a separate line item in our consolidated
financial statements under “Income from unconsolidated joint
ventures”. |
|
|
|
|
Contact: |
J. Larry Sorsby |
Jeffrey T. O’Keefe |
|
Executive Vice President & CFO |
Vice President, Investor Relations |
|
732-747-7800 |
732-747-7800 |
|
|
|
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