Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national
homebuilder, reported results for its fiscal fourth quarter and
year ended October 31, 2022.
RESULTS FOR THE FOURTH QUARTER AND YEAR
ENDED OCTOBER 31, 2022:
- Total revenues increased 8.9% to
$886.8 million in the fourth quarter of fiscal 2022, compared with
$814.3 million in the same quarter of the prior year. For the year
ended October 31, 2022, total revenues were $2.92 billion compared
with $2.78 billion in the prior year.
- Homebuilding gross margin
percentage, after cost of sales interest expense and land charges,
was 19.6% for the three months ended October 31, 2022 compared with
19.4% during the same period a year ago. During fiscal 2022,
homebuilding gross margin percentage, after cost of sales interest
expense and land charges, was 21.5%, an increase of 290 basis
points, compared with 18.6% in the prior fiscal year.
- Homebuilding gross margin
percentage, before cost of sales interest expense and land charges,
increased 140 basis points to 24.2% during the fiscal 2022 fourth
quarter compared with 22.8% in last year’s fourth quarter. For the
year ended October 31, 2022, homebuilding gross margin percentage,
before cost of sales interest expense and land charges, was 25.0%,
up 320 basis points, compared with 21.8% in the previous fiscal
year.
- Total SG&A was $80.9 million,
or 9.1% of total revenues, in the fourth quarter of fiscal 2022
compared with $70.0 million, or 8.6% of total revenues, in the
previous year’s fourth quarter. During fiscal 2022, total SG&A
was $296.2 million, or 10.1% of total revenues, compared with
$276.6 million, or 9.9% of total revenues, in the same period of
the prior fiscal year.
- Total interest expense as a percent
of total revenues improved by 30 basis points to 4.4% for the
fourth quarter of fiscal 2022 compared with 4.7% during the fourth
quarter of fiscal 2021. For fiscal 2022, total interest expense as
a percent of total revenues improved 130 basis points to 4.5%
compared with 5.8% in the previous fiscal year.
- Income before income taxes for the
fourth quarter of fiscal 2022 increased 18.1% to $91.5 million
compared with $77.4 million in the fourth quarter of the prior
fiscal year. For fiscal 2022, income before income taxes increased
68.4% to $319.8 million compared with $189.9 million during the
prior fiscal year.
- Net income was $55.6 million, or
$7.24 per diluted common share, for the three months ended October
31, 2022 compared with net income of $52.5 million, or $7.41 per
diluted common share, in the fourth quarter of the previous fiscal
year. For fiscal 2022, net income was $225.5 million, or $29.00 per
diluted common share, compared with net income, including the
$468.6 million benefit from the valuation allowance reduction, of
$607.8 million, or $85.86 per diluted common share, during fiscal
2021.
- Consolidated contract dollars in
the fourth quarter of fiscal 2022 declined 48.0% to $343.7 million
(602 homes) compared with $660.4 million (1,263 homes) in the same
quarter last year. Contract dollars, including domestic
unconsolidated joint ventures(1), for the three months ended
October 31, 2022 declined to $412.9 million (703 homes) compared
with $749.5 million (1,389 homes) in the fourth quarter of fiscal
2021.
- Consolidated contract dollars in
fiscal 2022 were $2.47 billion (4,477 homes) compared with $2.89
billion (6,023 homes) last year. Contract dollars, including
domestic unconsolidated joint ventures(1), for the year ended
October 31, 2022 were $2.81 billion (4,965 homes) compared with
$3.30 billion (6,687 homes) in fiscal 2021.
- Consolidated contracts per
community were 5.0 for the fourth quarter ended October 31, 2022
compared to 10.2 contracts per community in last year’s fourth
quarter. Contracts per community, including domestic unconsolidated
joint ventures, decreased to 5.3 contracts per community for the
fourth quarter of fiscal 2022 compared with 9.9 contracts per
community for the fourth quarter of fiscal 2021.
- As of the end of fiscal 2022,
consolidated community count was 121 communities, compared with 124
communities on October 31, 2021. Community count, including
domestic unconsolidated joint ventures, was 133 as of October 31,
2022, compared with 140 communities at the end of the previous
year.
- The dollar value of consolidated contract backlog, as of
October 31, 2022, decreased 22.6% to $1.27 billion compared with
$1.64 billion as of October 31, 2021. The dollar value of contract
backlog, including domestic unconsolidated joint ventures, as of
October 31, 2022, decreased 20.0% to $1.50 billion compared with
$1.88 billion as of October 31, 2021.
- Sale of homes revenues increased
11.2% to $866.6 million (1,599 homes) in the fiscal 2022 fourth
quarter compared with $779.6 million (1,703 homes) in the previous
year’s fourth quarter. During the fiscal 2022 fourth quarter, sale
of homes revenues, including domestic unconsolidated joint
ventures, increased to $981.2 million (1,779 homes) compared with
$860.9 million (1,839 homes) during the fourth quarter of fiscal
2021.
- For fiscal 2022, sale of homes
revenues were $2.84 billion (5,538 homes) compared with $2.67
billion (6,204) homes in the previous year. For fiscal 2022, sale
of homes revenues, including domestic unconsolidated joint
ventures, were $3.18 billion (6,090 homes) compared with $3.02
billion (6,793 homes) during fiscal 2021.
- The beginning backlog cancellation
rate for consolidated contracts increased to 13% for the fourth
quarter ended October 31, 2022 compared with 6% in the fiscal 2021
fourth quarter. The beginning backlog cancellation rate for
contracts including domestic unconsolidated joint ventures was 12%
for the fourth quarter of fiscal 2022 compared with 6% in the
fourth quarter of the prior year. The historical average
consolidated beginning backlog cancellation rate since fiscal 2013
is 13%.
- The gross contract cancellation
rate for consolidated contracts increased to 41% for the fourth
quarter ended October 31, 2022 compared with 15% in the fiscal 2021
fourth quarter. The gross contract cancellation rate for contracts
including domestic unconsolidated joint ventures was 39% for the
fourth quarter of fiscal 2022 compared with 14% in the fourth
quarter of the prior year.
(1)When we refer to “Domestic Unconsolidated
Joint Ventures”, we are excluding results from our single community
unconsolidated joint venture in the Kingdom of Saudi Arabia
(KSA).
LIQUIDITY AND INVENTORY AS OF OCTOBER
31, 2022:
- During the fourth quarter of fiscal
2022, land and land development spending was $205.2 million
compared with $167.1 million in the same quarter one year ago. For
fiscal 2022, land and land development spending was $759.3 million
compared with $698.3 million one year ago.
- After early retirement of $100
million of senior secured notes in the second quarter of fiscal
2022, total liquidity as of October 31, 2022 was $457.3 million,
significantly above our targeted liquidity range of $170 million to
$245 million.
- In the fourth quarter of fiscal
2022, approximately 3,200 lots were put under option or acquired in
23 consolidated communities.
- As of October 31, 2022, the total
controlled consolidated lots were 31,518 an increase compared with
30,874 lots at the end of the fourth quarter of the previous year
and a decrease compared to 31,913 lots on July 31, 2022. Based on
trailing twelve-month deliveries, the current position equaled a
5.7 years’ supply.
COMMENTS FROM MANAGEMENT:
“We are pleased with the strong performance for
our fourth quarter and fiscal year. We exceeded our full year
guidance for adjusted pretax income and adjusted EBITDA. Our strong
performance in fiscal 2022 was partially the result of deliveries
which were contracted during a time when demand for new homes was
much stronger than it is today,” stated Ara K. Hovnanian, Chairman
of the Board, President and Chief Executive Officer. “The current
level of demand for new homes is significantly lower and continues
to be burdened by high levels of inflation, a sharp increase in
mortgage rates and concerns about an economic recession.”
“Given the strong margins in our large fourth
quarter backlog and to minimize any potential disruption to those
deliveries and margins, we were not aggressive with concessions on
new contracts during the fourth quarter. Additionally, to eliminate
the risk of further mortgage rate increases, consumers are seeking
homes where they can close quickly. In response to that demand, we
ended the year with 5.6 quick move in homes per community, compared
to 3.2 at the end of the third quarter and our long-term average of
4.4 quick move in homes per community. Therefore, we felt it was
prudent to postpone larger incentives until the increased level of
quick move in homes we started during the third and fourth quarter
were closer to being completed. Now that the fourth quarter is
behind us and because of the progress we have made on constructing
additional quick move in homes, we are now becoming more aggressive
in our attempts to find the market price that will spur demand in
each of our markets.”
“During a period of declining housing demand, it
is important that we focus on preserving liquidity. We ended our
fiscal year with $457 million of liquidity, significantly above the
$245 million high end of our target range. We remain committed to
strengthening our balance sheet and intend to revisit our debt
retirement initiatives once market conditions improve. Despite the
near-term uncertainty in the housing market, we believe that the
long-term fundamentals remain intact and as the economy and
mortgage market reach stability, it should lead to a more robust
housing market that returns sales pace per community to more
normalized levels,” concluded Mr. Hovnanian.
SEGMENT
CHANGE/RECLASSIFICATION
Historically, the Company had seven reportable
segments consisting of six homebuilding segments (Northeast,
Mid-Atlantic, Midwest, Southeast, Southwest and West) and its
financial services segment. During the fourth quarter of fiscal
2022, we reevaluated our reportable segments as a result
of changes in the business and our management thereof. In
particular, we considered the fact that, since our segments were
last established, the Company had exited the Minnesota, North
Carolina, and Tampa markets and is currently in the process of
exiting the Chicago market. As a result, we realigned our
homebuilding operating segments and determined that, in addition to
our financial services segment, we now have three reportable
homebuilding segments comprised of (1) Northeast, (2) Southeast and
(3) West. All prior period amounts related to the segment change
have been retrospectively reclassified to conform to the new
presentation.
WEBCAST INFORMATION:
Hovnanian Enterprises will webcast its fiscal
2022 fourth quarter financial results conference call at 11:00 a.m.
E.T. on Thursday, December 8, 2022. 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 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 impairments and land
option write-offs and loss on extinguishment of debt, net
(“Adjusted EBITDA”) are not U.S. generally accepted accounting
principles (GAAP) financial measures. The most directly comparable
GAAP financial measure is net income. The reconciliation for
historical periods of EBIT, EBITDA and Adjusted EBITDA to net
income is presented in a table attached to this earnings
release.
Homebuilding gross margin, before cost
of sales interest expense and land charges, and homebuilding gross
margin percentage, before cost of sales interest expense and land
charges, are non-GAAP financial measures. The most directly
comparable GAAP financial measures are homebuilding gross margin
and homebuilding gross margin percentage, respectively. The
reconciliation for historical periods of homebuilding gross margin,
before cost of sales interest expense and land charges, and
homebuilding gross margin percentage, before cost of sales interest
expense and land charges, to homebuilding gross margin and
homebuilding gross margin percentage, respectively, is presented in
a table attached to this earnings release.
Adjusted pretax income, which is defined
as income before income taxes excluding land-related charges and
loss on extinguishment of debt, net is a non-GAAP financial
measure. The most directly comparable GAAP financial measure is
income before income taxes. The reconciliation for historical
periods of adjusted pretax income to income before income taxes is
presented in a table attached to this earnings
release.
Total liquidity is comprised of $326.2
million of cash and cash equivalents, $6.1 million of restricted
cash required to collateralize letters of credit and $125.0 million
availability under the senior secured revolving credit facility as
of October 31, 2022.
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 and
statements regarding demand for homes, customer incentives and
underlying factors. 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) shortages in, and price fluctuations of, raw
materials and labor, including due to geopolitical events, changes
in trade policies, including the imposition of tariffs and duties
on homebuilding materials and products and related trade disputes
with and retaliatory measures taken by other countries; (3)
fluctuations in interest rates and the availability of mortgage
financing; (4) adverse weather and other environmental conditions
and natural disasters; (5) the seasonality of the Company’s
business; (6) the availability and cost of suitable land and
improved lots and sufficient liquidity to invest in such land and
lots; (7) reliance on, and the performance of, subcontractors; (8)
regional and local economic factors, including dependency on
certain sectors of the economy, and employment levels affecting
home prices and sales activity in the markets where the Company
builds homes; (9) increases in cancellations of agreements of sale;
(10) increases in inflation; (11) changes in tax laws affecting the
after-tax costs of owning a home; (12) legal claims brought against
us and not resolved in our favor, such as product liability
litigation, warranty claims and claims made by mortgage investors;
(13) levels of competition; (14) utility shortages and outages or
rate fluctuations; (15) information technology failures and data
security breaches; (16) negative publicity; (17) high leverage and
restrictions on the Company’s operations and activities imposed by
the agreements governing the Company’s outstanding indebtedness;
(18) availability and terms of financing to the Company; (19) the
Company’s sources of liquidity; (20) changes in credit ratings;
(21) government regulation, including regulations concerning
development of land, the home building, sales and customer
financing processes, tax laws and the environment; (22) operations
through unconsolidated joint ventures with third parties; (23)
significant influence of the Company’s controlling stockholders;
(24) availability of net operating loss carryforwards; (25) loss of
key management personnel or failure to attract qualified personnel;
(26) the outbreak and spread of COVID-19 and the measures that
governments, agencies, law enforcement and/or health authorities
implement to address it, as well as continuing macroeconomic
effects of the pandemic; and (27) 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, 2021 and the
Company’s Quarterly Reports on Form 10-Q for the quarterly periods
during fiscal 2022 and subsequent filings with the Securities and
Exchange Commission. Except as otherwise required by applicable
securities laws, we undertake no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events, changed circumstances or any other
reason.
Hovnanian
Enterprises, Inc. |
October
31, 2022 |
Statements of
consolidated operations |
(In thousands,
except per share data) |
|
|
|
Three Months Ended |
|
Year Ended |
|
|
|
October 31, |
|
October 31, |
|
|
|
2022 |
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Total
revenues |
$ |
886,788 |
|
$ |
814,348 |
|
|
$ |
2,922,231 |
|
|
$ |
2,782,857 |
|
Costs and expenses
(1) |
|
800,422 |
|
|
732,742 |
|
|
|
2,624,716 |
|
|
|
2,598,097 |
|
Loss on
extinguishment of debt, net |
|
- |
|
|
(3,442 |
) |
|
|
(6,795 |
) |
|
|
(3,748 |
) |
Income (loss) from
unconsolidated joint ventures |
|
5,114 |
|
|
(719 |
) |
|
|
29,033 |
|
|
|
8,849 |
|
Income before
income taxes |
|
91,480 |
|
|
77,445 |
|
|
|
319,753 |
|
|
|
189,861 |
|
Income tax
provision (benefit) |
|
35,847 |
|
|
24,965 |
|
|
|
94,263 |
|
|
|
(417,956 |
) |
Net income |
|
55,633 |
|
|
52,480 |
|
|
|
225,490 |
|
|
|
607,817 |
|
Less: preferred
stock dividends |
|
2,668 |
|
|
- |
|
|
|
10,675 |
|
|
|
- |
|
Net income
available to common stockholders |
$ |
52,965 |
|
$ |
52,480 |
|
|
$ |
214,815 |
|
|
$ |
607,817 |
|
|
|
|
Per share
data: |
Basic: |
|
Net income per
common share |
$ |
7.55 |
|
$ |
7.53 |
|
|
$ |
30.31 |
|
|
$ |
87.50 |
|
|
Weighted average
number of |
|
|
|
|
|
|
|
|
|
|
|
|
|
common shares outstanding |
|
6,478 |
|
|
6,360 |
|
|
|
6,437 |
|
|
|
6,287 |
|
Assuming
dilution: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
common share |
$ |
7.24 |
|
$ |
7.41 |
|
|
$ |
29.00 |
|
|
$ |
85.86 |
|
|
Weighted average
number of |
|
|
|
|
|
|
|
|
|
|
|
|
|
common shares
outstanding |
|
6,750 |
|
|
6,467 |
|
|
|
6,728 |
|
|
|
6,395 |
|
|
(1) Includes
inventory impairments and land option write-offs. |
|
|
Hovnanian
Enterprises, Inc. |
October
31, 2022 |
Reconciliation of
income before income taxes excluding land-related charges and loss
on extinguishment of debt, net to income before income taxes |
(In
thousands) |
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
|
October 31, |
|
October 31, |
|
|
|
2022 |
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Income before
income taxes |
$ |
91,480 |
|
$ |
77,445 |
|
|
$ |
319,753 |
|
|
$ |
189,861 |
|
Inventory
impairments and land option write-offs |
|
12,239 |
|
|
363 |
|
|
|
14,076 |
|
|
|
3,630 |
|
Loss on
extinguishment of debt, net |
|
- |
|
|
3,442 |
|
|
|
6,795 |
|
|
|
3,748 |
|
Income before
income taxes excluding land-related charges and loss on
extinguishment of debt, net (1) |
$ |
103,719 |
|
$ |
81,250 |
|
|
$ |
340,624 |
|
|
$ |
197,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Income before
income taxes excluding land-related charges and loss on
extinguishment of debt, net is a non-GAAP financial measure. The
most directly comparable GAAP financial measure is income before
income taxes. |
Hovnanian
Enterprises, Inc. |
October
31, 2022 |
Gross margin |
(In
thousands) |
|
Homebuilding Gross Margin |
|
Homebuilding Gross Margin |
|
Three Months Ended |
|
Year Ended |
|
October 31, |
|
October 31, |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
(Unaudited) |
|
(Unaudited) |
Sale of homes |
$ |
866,611 |
|
|
$ |
779,551 |
|
|
$ |
2,840,454 |
|
|
$ |
2,673,710 |
|
Cost of sales, excluding
interest expense and land charges (1) |
|
656,805 |
|
|
|
602,097 |
|
|
|
2,131,208 |
|
|
|
2,091,016 |
|
Homebuilding gross margin,
before cost of sales interest expense and land charges (2) |
|
209,806 |
|
|
|
177,454 |
|
|
|
709,246 |
|
|
|
582,694 |
|
Cost of sales interest
expense, excluding land sales interest expense |
|
27,343 |
|
|
|
25,939 |
|
|
|
85,198 |
|
|
|
82,181 |
|
Homebuilding gross margin,
after cost of sales interest expense, before land charges (2) |
|
182,463 |
|
|
|
151,515 |
|
|
|
624,048 |
|
|
|
500,513 |
|
Land charges |
|
12,239 |
|
|
|
363 |
|
|
|
14,076 |
|
|
|
3,630 |
|
Homebuilding gross margin |
$ |
170,224 |
|
|
$ |
151,152 |
|
|
$ |
609,972 |
|
|
$ |
496,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding gross margin
percentage |
|
19.6% |
|
|
|
19.4% |
|
|
|
21.5% |
|
|
|
18.6% |
|
Homebuilding gross margin
percentage, before cost of sales interest expense and land charges
(2) |
|
24.2% |
|
|
|
22.8% |
|
|
|
25.0% |
|
|
|
21.8% |
|
Homebuilding gross margin
percentage, after cost of sales interest expense, before land
charges (2) |
|
21.1% |
|
|
|
19.4% |
|
|
|
22.0% |
|
|
|
18.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land Sales Gross Margin |
|
Land Sales Gross Margin |
|
Three Months Ended |
|
Year Ended |
|
October 31, |
|
October 31, |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
(Unaudited) |
|
(Unaudited) |
Land and lot sales |
$ |
15 |
|
|
$ |
13,634 |
|
|
$ |
16,202 |
|
|
$ |
25,364 |
|
Cost of sales, excluding
interest (1) |
|
83 |
|
|
|
10,059 |
|
|
|
5,855 |
|
|
|
19,180 |
|
Land and lot sales gross
margin, excluding interest and land charges |
|
(68 |
) |
|
|
3,575 |
|
|
|
10,347 |
|
|
|
6,184 |
|
Land and lot sales interest
expense |
|
21 |
|
|
|
31 |
|
|
|
42 |
|
|
|
1,919 |
|
Land and lot sales gross
margin, including interest |
$ |
(89 |
) |
|
$ |
3,544 |
|
|
$ |
10,305 |
|
|
$ |
4,265 |
|
|
|
(1) Does not
include cost associated with walking away from land options or
inventory impairments which are recorded as Inventory impairments
and land option write-offs in the Consolidated Statements of
Operations. |
(2) Homebuilding
gross margin, before cost of sales interest expense and land
charges, and homebuilding gross margin percentage, before cost of
sales interest expense and land charges, are non-GAAP financial
measures. The most directly comparable GAAP financial measures are
homebuilding gross margin and homebuilding gross margin percentage,
respectively. |
Hovnanian
Enterprises, Inc. |
October
31, 2022 |
Reconciliation of
adjusted EBITDA to net income |
(In
thousands) |
|
Three Months Ended |
|
Year Ended |
|
October 31, |
|
October 31, |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
(Unaudited) |
|
(Unaudited) |
Net income |
$ |
55,633 |
|
|
$ |
52,480 |
|
|
$ |
225,490 |
|
|
$ |
607,817 |
|
Income tax provision
(benefit) |
|
35,847 |
|
|
|
24,965 |
|
|
|
94,263 |
|
|
|
(417,956 |
) |
Interest expense |
|
39,265 |
|
|
|
38,520 |
|
|
|
132,583 |
|
|
|
161,816 |
|
EBIT (1) |
|
130,745 |
|
|
|
115,965 |
|
|
|
452,336 |
|
|
|
351,677 |
|
Depreciation and
amortization |
|
1,448 |
|
|
|
1,189 |
|
|
|
5,457 |
|
|
|
5,280 |
|
EBITDA (2) |
|
132,193 |
|
|
|
117,154 |
|
|
|
457,793 |
|
|
|
356,957 |
|
Inventory impairments and land
option write-offs |
|
12,239 |
|
|
|
363 |
|
|
|
14,076 |
|
|
|
3,630 |
|
Loss on extinguishment of
debt, net |
|
- |
|
|
|
3,442 |
|
|
|
6,795 |
|
|
|
3,748 |
|
Adjusted EBITDA (3) |
$ |
144,432 |
|
|
$ |
120,959 |
|
|
$ |
478,664 |
|
|
$ |
364,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest incurred |
$ |
34,725 |
|
|
$ |
33,006 |
|
|
$ |
134,024 |
|
|
$ |
155,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA to interest
incurred |
|
4.16 |
|
|
|
3.66 |
|
|
|
3.57 |
|
|
|
2.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) EBIT is a
non-GAAP financial measure. The most directly comparable GAAP
financial measure is net income. 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. 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. Adjusted EBITDA
represents earnings before interest expense, income taxes,
depreciation, amortization, inventory impairments and land option
write-offs and loss on extinguishment of debt, net. |
|
|
Hovnanian
Enterprises, Inc. |
October
31, 2022 |
Interest
incurred, expensed and capitalized |
(In
thousands) |
|
Three Months Ended |
|
Year Ended |
|
October 31, |
|
October 31, |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
(Unaudited) |
|
(Unaudited) |
Interest capitalized at
beginning of period |
$ |
64,140 |
|
|
$ |
63,673 |
|
|
$ |
58,159 |
|
|
$ |
65,010 |
|
Plus: interest incurred |
|
34,725 |
|
|
|
33,006 |
|
|
|
134,024 |
|
|
|
155,514 |
|
Less: interest expensed |
|
(39,265 |
) |
|
|
(38,520 |
) |
|
|
(132,583 |
) |
|
|
(161,816 |
) |
Less: interest contributed to
unconsolidated joint venture (1) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,667 |
) |
Plus: interest acquired from
unconsolidated joint venture (2) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,118 |
|
Interest capitalized at end of
period (3) |
$ |
59,600 |
|
|
$ |
58,159 |
|
|
$ |
59,600 |
|
|
$ |
58,159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents
capitalized interest which was included as part of the assets
contributed to the joint venture the company entered into in April
2021 during the year ended October 31, 2021. There was no impact to
the Consolidated Statement of Operations as a result of this
transaction. |
(2) Represents
capitalized interest which was included as part of the assets
purchased from a joint venture the company exited out of in June
2021 during the year ended October 31, 2021. There was no impact to
the Consolidated Statement of Operations as a result of this
transaction. |
(3) Capitalized
interest amounts are shown gross before allocating any portion of
impairments to capitalized interest. |
HOVNANIAN ENTERPRISES, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(In thousands, except per share
data)(Unaudited)
|
October 31, |
|
|
October 31, |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
326,198 |
|
|
$ |
245,970 |
|
Restricted cash and cash equivalents |
|
13,382 |
|
|
|
16,089 |
|
Inventories: |
|
|
|
|
|
|
|
Sold and unsold homes and lots under development |
|
1,058,183 |
|
|
|
1,019,541 |
|
Land and land options held for future development or sale |
|
152,406 |
|
|
|
135,992 |
|
Consolidated inventory not owned |
|
308,595 |
|
|
|
98,727 |
|
Total inventories |
|
1,519,184 |
|
|
|
1,254,260 |
|
Investments in and advances to unconsolidated joint ventures |
|
74,940 |
|
|
|
60,897 |
|
Receivables, deposits and notes, net |
|
37,837 |
|
|
|
39,934 |
|
Property and equipment, net |
|
25,819 |
|
|
|
18,736 |
|
Prepaid expenses and other assets |
|
63,884 |
|
|
|
56,186 |
|
Total homebuilding |
|
2,061,244 |
|
|
|
1,692,072 |
|
|
|
|
|
|
|
|
|
Financial services |
|
155,993 |
|
|
|
202,758 |
|
|
|
|
|
|
|
|
|
Deferred tax assets, net |
|
344,793 |
|
|
|
425,678 |
|
Total assets |
$ |
2,562,030 |
|
|
$ |
2,320,508 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
Nonrecourse mortgages secured by inventory, net of debt issuance
costs |
$ |
144,805 |
|
|
$ |
125,089 |
|
Accounts payable and other liabilities |
|
439,952 |
|
|
|
426,381 |
|
Customers’ deposits |
|
74,020 |
|
|
|
68,295 |
|
Liabilities from inventory not owned, net of debt issuance
costs |
|
202,492 |
|
|
|
62,762 |
|
Senior notes and credit facilities (net of discounts, premiums and
debt issuance costs) |
|
1,146,547 |
|
|
|
1,248,373 |
|
Accrued interest |
|
32,415 |
|
|
|
28,154 |
|
Total homebuilding |
|
2,040,231 |
|
|
|
1,959,054 |
|
|
|
|
|
|
|
|
|
Financial services |
|
135,581 |
|
|
|
182,219 |
|
|
|
|
|
|
|
|
|
Income taxes payable |
|
3,167 |
|
|
|
3,851 |
|
Total liabilities |
|
2,178,979 |
|
|
|
2,145,124 |
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
Hovnanian Enterprises, Inc.
stockholders' equity: |
|
|
|
|
|
|
|
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, 2022 and October 31, 2021 |
|
135,299 |
|
|
|
135,299 |
|
Common stock, Class A, $0.01 par value - authorized 16,000,000
shares; issued 6,159,886 shares at October 31, 2022 and 6,066,164
shares at October 31, 2021 |
|
62 |
|
|
|
61 |
|
Common stock, Class B, $0.01 par value (convertible to Class A at
time of sale) - authorized 2,400,000 shares; issued 733,374 shares
at October 31, 2022 and 686,876 shares at October 31, 2021 |
|
7 |
|
|
|
7 |
|
Paid in capital - common stock |
|
727,663 |
|
|
|
722,118 |
|
Accumulated deficit |
|
(352,413 |
) |
|
|
(567,228 |
) |
Treasury stock - at cost – 782,901 shares of Class A common stock
at October 31, 2022 and 470,430 shares at October 31, 2021; 27,669
shares of Class B common stock at October 31, 2022 and October 31,
2021 |
|
(127,582 |
) |
|
|
(115,360 |
) |
Total Hovnanian Enterprises, Inc. stockholders’ equity |
|
383,036 |
|
|
|
174,897 |
|
Noncontrolling interest in
consolidated joint ventures |
|
15 |
|
|
|
487 |
|
Total equity |
|
383,051 |
|
|
|
175,384 |
|
Total liabilities and
equity |
$ |
2,562,030 |
|
|
$ |
2,320,508 |
|
HOVNANIAN ENTERPRISES, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(In thousands,
except per share data)(Unaudited)
|
|
Three Months Ended October 31, |
Years Ended October 31, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale of homes |
$ |
866,611 |
|
|
$ |
779,551 |
|
|
$ |
2,840,454 |
|
|
$ |
2,673,710 |
|
Land sales and other revenues |
|
2,185 |
|
|
|
14,175 |
|
|
|
20,237 |
|
|
|
27,455 |
|
Total homebuilding |
|
868,796 |
|
|
|
793,726 |
|
|
|
2,860,691 |
|
|
|
2,701,165 |
|
Financial services |
|
17,992 |
|
|
|
20,622 |
|
|
|
61,540 |
|
|
|
81,692 |
|
Total revenues |
|
886,788 |
|
|
|
814,348 |
|
|
|
2,922,231 |
|
|
|
2,782,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales, excluding interest |
|
656,888 |
|
|
|
612,156 |
|
|
|
2,137,063 |
|
|
|
2,110,196 |
|
Cost of sales interest |
|
27,364 |
|
|
|
25,970 |
|
|
|
85,240 |
|
|
|
84,100 |
|
Inventory impairments and land option write-offs |
|
12,239 |
|
|
|
363 |
|
|
|
14,076 |
|
|
|
3,630 |
|
Total cost of sales |
|
696,491 |
|
|
|
638,489 |
|
|
|
2,236,379 |
|
|
|
2,197,926 |
|
Selling, general and administrative |
|
54,126 |
|
|
|
44,475 |
|
|
|
193,536 |
|
|
|
169,892 |
|
Total homebuilding expenses |
|
750,617 |
|
|
|
682,964 |
|
|
|
2,429,915 |
|
|
|
2,367,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial services |
|
10,437 |
|
|
|
11,176 |
|
|
|
42,419 |
|
|
|
44,129 |
|
Corporate general and administrative |
|
26,725 |
|
|
|
25,545 |
|
|
|
102,618 |
|
|
|
106,694 |
|
Other interest |
|
11,901 |
|
|
|
12,550 |
|
|
|
47,343 |
|
|
|
77,716 |
|
Other expenses, net |
|
742 |
|
|
|
507 |
|
|
|
2,421 |
|
|
|
1,740 |
|
Total expenses |
|
800,422 |
|
|
|
732,742 |
|
|
|
2,624,716 |
|
|
|
2,598,097 |
|
Loss on
extinguishment of debt, net |
|
- |
|
|
|
(3,442 |
) |
|
|
(6,795 |
) |
|
|
(3,748 |
) |
Income (loss) from
unconsolidated joint ventures |
|
5,114 |
|
|
|
(719 |
) |
|
|
29,033 |
|
|
|
8,849 |
|
Income before
income taxes |
|
91,480 |
|
|
|
77,445 |
|
|
|
319,753 |
|
|
|
189,861 |
|
State and federal
income tax provision (benefit): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State |
|
22,684 |
|
|
|
6,924 |
|
|
|
34,199 |
|
|
|
(82,348 |
) |
Federal |
|
13,163 |
|
|
|
18,041 |
|
|
|
60,064 |
|
|
|
(335,608 |
) |
Total income taxes |
|
35,847 |
|
|
|
24,965 |
|
|
|
94,263 |
|
|
|
(417,956 |
) |
Net income |
|
55,633 |
|
|
|
52,480 |
|
|
|
225,490 |
|
|
|
607,817 |
|
Less: preferred
stock dividends |
|
2,668 |
|
|
|
- |
|
|
|
10,675 |
|
|
|
- |
|
Net income
available to common stockholders |
$ |
52,965 |
|
|
$ |
52,480 |
|
|
$ |
214,815 |
|
|
$ |
607,817 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share |
$ |
7.55 |
|
|
$ |
7.53 |
|
|
$ |
30.31 |
|
|
$ |
87.50 |
|
Weighted-average number of common shares outstanding |
|
6,478 |
|
|
|
6,360 |
|
|
|
6,437 |
|
|
|
6,287 |
|
Assuming
dilution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share |
$ |
7.24 |
|
|
$ |
7.41 |
|
|
$ |
29.00 |
|
|
$ |
85.86 |
|
Weighted-average number of common shares outstanding |
|
6,750 |
|
|
|
6,467 |
|
|
|
6,728 |
|
|
|
6,395 |
|
HOVNANIAN
ENTERPRISES, INC. |
(DOLLARS
IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT
DATA EXCLUDES UNCONSOLIDATED
JOINT VENTURES) |
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Three Months Ended |
Three Months Ended |
Backlog |
|
|
October 31, |
October 31, |
October 31, |
|
|
2022 |
2021 |
% Change |
2022 |
2021 |
% Change |
2022 |
2021 |
% Change |
Northeast (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(DE, IL, MD, NJ, OH, PA, VA, WV) |
Home |
|
232 |
|
418 |
(44.5)% |
|
|
618 |
|
527 |
17.3% |
|
|
850 |
|
1,285 |
(33.9)% |
|
|
Dollars |
$ |
145,816 |
$ |
245,121 |
(40.5)% |
|
$ |
363,260 |
$ |
266,597 |
36.3% |
|
$ |
464,173 |
$ |
675,031 |
(31.2)% |
|
|
Avg. Price |
$ |
628,517 |
$ |
586,414 |
7.2% |
|
$ |
587,799 |
$ |
505,877 |
16.2% |
|
$ |
546,086 |
$ |
525,316 |
4.0% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(FL, GA, SC) |
Home |
|
176 |
|
175 |
0.6% |
|
|
248 |
|
194 |
27.8% |
|
|
502 |
|
421 |
19.2% |
|
|
Dollars |
$ |
86,248 |
$ |
97,285 |
(11.3)% |
|
$ |
123,378 |
$ |
87,718 |
40.7% |
|
$ |
310,889 |
$ |
221,425 |
40.4% |
|
|
Avg. Price |
$ |
490,045 |
$ |
555,914 |
(11.8)% |
|
$ |
497,492 |
$ |
452,155 |
10.0% |
|
$ |
619,301 |
$ |
525,950 |
17.7% |
|
West |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(AZ, CA, TX) |
Home |
|
194 |
|
670 |
(71.0)% |
|
|
733 |
|
982 |
(25.4)% |
|
|
834 |
|
1,541 |
(45.9)% |
|
|
Dollars |
$ |
111,616 |
$ |
317,986 |
(64.9)% |
|
$ |
379,973 |
$ |
425,236 |
(10.6)% |
|
$ |
493,617 |
$ |
742,250 |
(33.5)% |
|
|
Avg. Price |
$ |
575,340 |
$ |
474,607 |
21.2% |
|
$ |
518,381 |
$ |
433,031 |
19.7% |
|
$ |
591,867 |
$ |
481,668 |
22.9% |
|
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
602 |
|
1,263 |
(52.3)% |
|
|
1,599 |
|
1,703 |
(6.1)% |
|
|
2,186 |
|
3,247 |
(32.7)% |
|
|
Dollars |
$ |
343,680 |
$ |
660,392 |
(48.0)% |
|
$ |
866,611 |
$ |
779,551 |
11.2% |
|
$ |
1,268,679 |
$ |
1,638,706 |
(22.6)% |
|
|
Avg. Price |
$ |
570,897 |
$ |
522,876 |
9.2% |
|
$ |
541,971 |
$ |
457,752 |
18.4% |
|
$ |
580,366 |
$ |
504,683 |
15.0% |
|
Unconsolidated Joint Ventures (2, 3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
101 |
|
126 |
(19.8)% |
|
|
180 |
|
136 |
32.4% |
|
|
311 |
|
375 |
(17.1)% |
|
|
Dollars |
$ |
69,190 |
$ |
89,062 |
(22.3)% |
|
$ |
114,633 |
$ |
81,351 |
40.9% |
|
$ |
235,777 |
$ |
241,619 |
(2.4)% |
|
|
Avg. Price |
$ |
685,050 |
$ |
706,841 |
(3.1)% |
|
$ |
636,850 |
$ |
598,169 |
6.5% |
|
$ |
758,125 |
$ |
644,317 |
17.7% |
|
Grand Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
703 |
|
1,389 |
(49.4)% |
|
|
1,779 |
|
1,839 |
(3.3)% |
|
|
2,497 |
|
3,622 |
(31.1)% |
|
|
Dollars |
$ |
412,870 |
$ |
749,454 |
(44.9)% |
|
$ |
981,244 |
$ |
860,902 |
14.0% |
|
$ |
1,504,456 |
$ |
1,880,325 |
(20.0)% |
|
|
Avg. Price |
$ |
587,296 |
$ |
539,564 |
8.8% |
|
$ |
551,571 |
$ |
468,136 |
17.8% |
|
$ |
602,505 |
$ |
519,140 |
16.1% |
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
4 |
|
247 |
(98.4)% |
|
|
0 |
|
0 |
0.0% |
|
|
2,213 |
|
1,913 |
15.7% |
|
|
Dollars |
$ |
606 |
$ |
38,731 |
(98.4)% |
|
$ |
0 |
$ |
0 |
0.0% |
|
$ |
347,420 |
$ |
300,384 |
15.7% |
|
|
Avg. Price |
$ |
151,500 |
$ |
156,806 |
(3.4)% |
|
$ |
0 |
$ |
0 |
0.0% |
|
$ |
156,991 |
$ |
157,022 |
0.0% |
|
|
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) Reflects the
reclassification of 14 homes and $7.4 million of contract backlog
as of October 31, 2021 from unconsolidated joint ventures to the
consolidated Northeast segment. This is related to our acquisition
of the remaining assets and liabilities from one of our
unconsolidated joint ventures which was dissolved during the fourth
quarter of fiscal 2021.(3) 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) |
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Year Ended |
Year Ended |
Backlog |
|
|
October 31, |
October 31, |
October 31, |
|
|
2022 |
2021 |
% Change |
2022 |
2021 |
% Change |
2022 |
2021 |
% Change |
Northeast (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(DE, IL, MD, NJ, OH, PA, VA, WV) |
Home |
|
1,460 |
|
1,862 |
(21.6)% |
|
|
1,895 |
|
1,823 |
3.9% |
|
|
850 |
|
1,285 |
(33.9)% |
|
|
Dollars |
$ |
857,240 |
$ |
1,011,639 |
(15.3)% |
|
$ |
1,068,098 |
$ |
854,175 |
25.0% |
|
$ |
464,173 |
$ |
675,031 |
(31.2)% |
|
|
Avg. Price |
$ |
587,151 |
$ |
543,308 |
8.1% |
|
$ |
563,640 |
$ |
468,555 |
20.3% |
|
$ |
546,086 |
$ |
525,316 |
4.0% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(FL, GA, SC) |
Home |
|
731 |
|
662 |
10.4% |
|
|
650 |
|
602 |
8.0% |
|
|
502 |
|
421 |
19.2% |
|
|
Dollars |
$ |
412,975 |
$ |
320,485 |
28.9% |
|
$ |
323,511 |
$ |
276,207 |
17.1% |
|
$ |
310,889 |
$ |
221,425 |
40.4% |
|
|
Avg. Price |
$ |
564,945 |
$ |
484,118 |
16.7% |
|
$ |
497,709 |
$ |
458,816 |
8.5% |
|
$ |
619,301 |
$ |
525,950 |
17.7% |
|
West |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(AZ, CA, TX) |
Home |
|
2,286 |
|
3,499 |
(34.7)% |
|
|
2,993 |
|
3,779 |
(20.8)% |
|
|
834 |
|
1,541 |
(45.9)% |
|
|
Dollars |
$ |
1,200,211 |
$ |
1,555,468 |
(22.8)% |
|
$ |
1,448,845 |
$ |
1,543,328 |
(6.1)% |
|
$ |
493,617 |
$ |
742,250 |
(33.5)% |
|
|
Avg. Price |
$ |
525,027 |
$ |
444,546 |
18.1% |
|
$ |
484,078 |
$ |
408,396 |
18.5% |
|
$ |
591,867 |
$ |
481,668 |
22.9% |
|
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
4,477 |
|
6,023 |
(25.7)% |
|
|
5,538 |
|
6,204 |
(10.7)% |
|
|
2,186 |
|
3,247 |
(32.7)% |
|
|
Dollars |
$ |
2,470,426 |
$ |
2,887,592 |
(14.4)% |
|
$ |
2,840,454 |
$ |
2,673,710 |
6.2% |
|
$ |
1,268,679 |
$ |
1,638,706 |
(22.6)% |
|
|
Avg. Price |
$ |
551,804 |
$ |
479,428 |
15.1% |
|
$ |
512,902 |
$ |
430,966 |
19.0% |
|
$ |
580,366 |
$ |
504,683 |
15.0% |
|
Unconsolidated Joint Ventures (2, 3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
488 |
|
664 |
(26.5)% |
|
|
552 |
|
589 |
(6.3)% |
|
|
311 |
|
375 |
(17.1)% |
|
|
Dollars |
$ |
337,775 |
$ |
407,886 |
(17.2)% |
|
$ |
343,617 |
$ |
345,793 |
(0.6)% |
|
$ |
235,777 |
$ |
241,619 |
(2.4)% |
|
|
Avg. Price |
$ |
692,162 |
$ |
614,286 |
12.7% |
|
$ |
622,495 |
$ |
587,085 |
6.0% |
|
$ |
758,125 |
$ |
644,317 |
17.7% |
|
Grand Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
4,965 |
|
6,687 |
(25.8)% |
|
|
6,090 |
|
6,793 |
(10.3)% |
|
|
2,497 |
|
3,622 |
(31.1)% |
|
|
Dollars |
$ |
2,808,201 |
$ |
3,295,478 |
(14.8)% |
|
$ |
3,184,071 |
$ |
3,019,503 |
5.5% |
|
$ |
1,504,456 |
$ |
1,880,325 |
(20.0)% |
|
|
Avg. Price |
$ |
565,599 |
$ |
492,819 |
14.8% |
|
$ |
522,836 |
$ |
444,502 |
17.6% |
|
$ |
602,505 |
$ |
519,140 |
16.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
300 |
|
821 |
(63.5)% |
|
|
0 |
|
0 |
0.0% |
|
|
2,213 |
|
1,913 |
15.7% |
|
|
Dollars |
$ |
47,036 |
$ |
128,711 |
(63.5)% |
|
$ |
0 |
$ |
0 |
0.0% |
|
$ |
347,420 |
$ |
300,384 |
15.7% |
|
|
Avg. Price |
$ |
156,787 |
$ |
156,773 |
0.0% |
|
$ |
0 |
$ |
0 |
0.0% |
|
$ |
156,991 |
$ |
157,022 |
0.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) Reflects the
reclassification of 14 homes and $7.4 million of contract backlog
as of October 31, 2021 from unconsolidated joint ventures to the
consolidated Northeast segment. This is related to our acquisition
of the remaining assets and liabilities from one of our
unconsolidated joint ventures which was dissolved during the fourth
quarter of fiscal 2021.(3) 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) |
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Three Months Ended |
Three Months Ended |
Backlog |
|
|
October 31, |
October 31, |
October 31, |
|
|
2022 |
2021 |
% Change |
2022 |
2021 |
% Change |
2022 |
2021 |
% Change |
Northeast (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unconsolidated Joint Ventures |
Home |
|
67 |
|
64 |
4.7% |
|
|
81 |
|
55 |
47.3% |
|
|
172 |
|
126 |
36.5% |
|
(Excluding KSA JV) |
Dollars |
$ |
46,714 |
$ |
47,497 |
(1.6)% |
|
$ |
55,740 |
$ |
41,328 |
34.9% |
|
$ |
125,004 |
$ |
86,797 |
44.0% |
|
(DE, IL, MD, NJ, OH, PA, VA, WV) |
Avg. Price |
$ |
697,224 |
$ |
742,141 |
(6.1)% |
|
$ |
688,148 |
$ |
751,418 |
(8.4)% |
|
$ |
726,767 |
$ |
688,865 |
5.5% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unconsolidated Joint Ventures) |
Home |
|
31 |
|
45 |
(31.1)% |
|
|
67 |
|
65 |
3.1% |
|
|
129 |
|
211 |
(38.9)% |
|
(FL, GA, SC) |
Dollars |
$ |
20,693 |
$ |
33,563 |
(38.3)% |
|
$ |
41,979 |
$ |
33,699 |
24.6% |
|
$ |
105,428 |
$ |
137,771 |
(23.5)% |
|
|
Avg. Price |
$ |
667,516 |
$ |
745,844 |
(10.5)% |
|
$ |
626,552 |
$ |
518,446 |
20.9% |
|
$ |
817,271 |
$ |
652,943 |
25.2% |
|
West |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unconsolidated Joint Ventures) |
Home |
|
3 |
|
17 |
(82.4)% |
|
|
32 |
|
16 |
100.0% |
|
|
10 |
|
38 |
(73.7)% |
|
(AZ, CA, TX) |
Dollars |
$ |
1,782 |
$ |
8,001 |
(77.7)% |
|
$ |
16,914 |
$ |
6,324 |
167.5% |
|
$ |
5,345 |
$ |
17,051 |
(68.7)% |
|
|
Avg. Price |
$ |
594,000 |
$ |
470,647 |
26.2% |
|
$ |
528,563 |
$ |
395,250 |
33.7% |
|
$ |
534,500 |
$ |
448,711 |
19.1% |
|
Unconsolidated Joint Ventures (2, 3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Excluding KSA JV) |
Home |
|
101 |
|
126 |
(19.8)% |
|
|
180 |
|
136 |
32.4% |
|
|
311 |
|
375 |
(17.1)% |
|
|
Dollars |
$ |
69,190 |
$ |
89,062 |
(22.3)% |
|
$ |
114,633 |
$ |
81,351 |
40.9% |
|
$ |
235,777 |
$ |
241,619 |
(2.4)% |
|
|
Avg. Price |
$ |
685,050 |
$ |
706,841 |
(3.1)% |
|
$ |
636,850 |
$ |
598,169 |
6.5% |
|
$ |
758,125 |
$ |
644,317 |
17.7% |
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
4 |
|
247 |
(98.4)% |
|
|
0 |
|
0 |
0.0% |
|
|
2,213 |
|
1,913 |
15.7% |
|
|
Dollars |
$ |
606 |
$ |
38,731 |
(98.4)% |
|
$ |
0 |
$ |
0 |
0.0% |
|
$ |
347,420 |
$ |
300,384 |
15.7% |
|
|
Avg. Price |
$ |
151,500 |
$ |
156,806 |
(3.4)% |
|
$ |
0 |
$ |
0 |
0.0% |
|
$ |
156,991 |
$ |
157,022 |
0.0% |
|
|
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) Reflects the
reclassification of 14 homes and $7.4 million of contract backlog
as of October 31, 2021 from unconsolidated joint ventures to the
consolidated Northeast segment. This is related to our acquisition
of the remaining assets and liabilities from one of our
unconsolidated joint ventures which was dissolved during the fourth
quarter of fiscal 2021.(3) 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) |
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Year Ended |
Year Ended |
BacklogOctober 31, |
|
|
October 31, |
October 31, |
|
|
2022 |
2021 |
% Change |
2022 |
2021 |
% Change |
2022 |
2021 |
% Change |
Northeast (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unconsolidated Joint Ventures) |
Home |
|
255 |
|
192 |
32.8% |
|
|
209 |
|
211 |
(0.9)% |
|
|
172 |
|
126 |
36.5% |
|
(Excluding KSA JV) |
Dollars |
$ |
181,777 |
$ |
152,402 |
19.3% |
|
$ |
143,571 |
$ |
162,140 |
(11.5)% |
|
$ |
125,004 |
$ |
86,797 |
44.0% |
|
(DE, IL, MD, NJ, OH, PA, VA, WV) |
Avg. Price |
$ |
712,851 |
$ |
793,760 |
(10.2)% |
|
$ |
686,943 |
$ |
768,436 |
(10.6)% |
|
$ |
726,767 |
$ |
688,865 |
5.5% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unconsolidated Joint Ventures) |
Home |
|
160 |
|
381 |
(58.0)% |
|
|
242 |
|
256 |
(5.5)% |
|
|
129 |
|
211 |
(38.9)% |
|
(FL, GA, SC) |
Dollars |
$ |
117,800 |
$ |
216,513 |
(45.6)% |
|
$ |
150,143 |
$ |
127,093 |
18.1% |
|
$ |
105,428 |
$ |
137,771 |
(23.5)% |
|
|
Avg. Price |
$ |
736,250 |
$ |
568,276 |
29.6% |
|
$ |
620,426 |
$ |
496,457 |
25.0% |
|
$ |
817,271 |
$ |
652,943 |
25.2% |
|
West |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unconsolidated Joint Ventures) |
Home |
|
73 |
|
91 |
(19.8)% |
|
|
101 |
|
122 |
(17.2)% |
|
|
10 |
|
38 |
(73.7)% |
|
(AZ, CA, TX) |
Dollars |
$ |
38,198 |
$ |
38,971 |
(2.0)% |
|
$ |
49,903 |
$ |
56,560 |
(11.8)% |
|
$ |
5,345 |
$ |
17,051 |
(68.7)% |
|
|
Avg. Price |
$ |
523,260 |
$ |
428,253 |
22.2% |
|
$ |
494,089 |
$ |
463,607 |
6.6% |
|
$ |
534,500 |
$ |
448,711 |
19.1% |
|
Unconsolidated Joint Ventures (2, 3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Excluding KSA JV) |
Home |
|
488 |
|
664 |
(26.5)% |
|
|
552 |
|
589 |
(6.3)% |
|
|
311 |
|
375 |
(17.1)% |
|
|
Dollars |
$ |
337,775 |
$ |
407,886 |
(17.2)% |
|
$ |
343,617 |
$ |
345,793 |
(0.6)% |
|
$ |
235,777 |
$ |
241,619 |
(2.4)% |
|
|
Avg. Price |
$ |
692,162 |
$ |
614,286 |
12.7% |
|
$ |
622,495 |
$ |
587,085 |
6.0% |
|
$ |
758,125 |
$ |
644,317 |
17.7% |
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
300 |
|
821 |
(63.5)% |
|
|
0 |
|
0 |
0.0% |
|
|
2,213 |
|
1,913 |
15.7% |
|
|
Dollars |
$ |
47,036 |
$ |
128,711 |
(63.5)% |
|
$ |
0 |
$ |
0 |
0.0% |
|
$ |
347,420 |
$ |
300,384 |
15.7% |
|
|
Avg. Price |
$ |
156,787 |
$ |
156,773 |
0.0% |
|
$ |
0 |
$ |
0 |
0.0% |
|
$ |
156,991 |
$ |
157,022 |
0.0% |
|
|
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) Reflects the
reclassification of 14 homes and $7.4 million of contract backlog
as of October 31, 2021 from unconsolidated joint ventures to the
consolidated Northeast segment. This is related to our acquisition
of the remaining assets and liabilities from one of our
unconsolidated joint ventures which was dissolved during the fourth
quarter of fiscal 2021.(3) 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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