Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national
homebuilder, reported results for its fiscal fourth quarter and
year ended October 31, 2023.
RESULTS FOR THE THREE-MONTHS AND FULL
YEAR ENDED OCTOBER 31, 2023:
- Total revenues were $887.0 million
(including 1,517 deliveries) in the fourth quarter of fiscal 2023,
compared with $886.8 million (including 1,599 deliveries) in the
same quarter of the prior year. For the year ended October 31,
2023, total revenues were $2.76 billion (including 4,878
deliveries) compared with $2.92 billion (including 5,538
deliveries) in fiscal 2022.
- Domestic unconsolidated joint
venture deliveries for the fourth quarter of 2023 increased 8.9% to
196 homes compared with 180 homes for the three months ended
October 31, 2022. Domestic unconsolidated joint venture deliveries
for fiscal 2023 increased 7.8% to 595 homes from 552 homes in
fiscal 2022. Additionally, deliveries of homes through our
unconsolidated joint venture in the Kingdom of Saudi Arabia
contributed $9.4 million of income from unconsolidated joint
ventures for the quarter.
- Homebuilding gross margin
percentage, after cost of sales interest expense and land charges,
was 21.4% for the three months ended October 31, 2023, compared
with 19.6% during the fourth quarter a year ago. In fiscal 2023,
homebuilding gross margin percentage, after cost of sales interest
expense and land charges, was 19.6% compared with 21.5% in the
prior fiscal year.
- Homebuilding gross margin
percentage, before cost of sales interest expense and land charges,
was 24.5% in the fiscal 2023 fourth quarter compared with 24.2% in
last year’s fourth quarter. For the year ended October 31, 2023,
homebuilding gross margin percentage, before cost of sales interest
expense and land charges, was 22.7% compared with 25.0% in the
previous fiscal year.
- Total SG&A was $80.8 million,
or 9.1% of total revenues, in the fourth quarter of fiscal 2023
compared with $80.9 million, or 9.1% of total revenues, in the
previous year’s fourth quarter. In fiscal 2023, total SG&A was
$304.8 million, or 11.1% of total revenues, compared with $296.2
million, or 10.1% of total revenues, in the prior fiscal year.
- Total interest expense as a percent
of total revenues was 4.1% for the fourth quarter of fiscal 2023
compared with 4.4% for the fourth quarter of fiscal 2022. For the
year ended October 31, 2023, total interest expense as a percent of
total revenues was 4.9% compared with 4.5% in the previous fiscal
year.
- Income before income taxes for the
fourth quarter of fiscal 2023 increased 32.7% to $121.4 million
compared with $91.5 million in the fourth quarter of the prior
fiscal year. For fiscal 2023, income before income taxes was $256.0
million compared with $319.8 million in the prior fiscal year.
- Income before income taxes
excluding land-related charges and loss on extinguishment of debt
increased 38.4% to $143.6 million in the fourth quarter of fiscal
2023 compared with income before these items of $103.7 million in
the fourth quarter of fiscal 2022. For fiscal 2023, income before
income taxes excluding land-related charges and loss on
extinguishment of debt was $283.1 million compared with income
before these items of $340.6 million for fiscal 2022.
- Net income was $97.3 million, or
$13.05 per diluted common share, for the three months ended October
31, 2023, compared with net income of $55.6 million, or $7.24 per
diluted common share, in the same period of the previous fiscal
year. For fiscal 2023, net income was $205.9 million, or $26.88 per
diluted common share, compared with net income of $225.5 million,
or $29.00 per diluted common share, in fiscal 2022.
- EBITDA increased 20.3% to $159.1
million for the fourth quarter of fiscal 2023 compared with $132.2
million for the fourth quarter of the prior year. For fiscal 2023,
EBITDA was $399.7 million compared with $457.8 million in the prior
year.
- Adjusted EBITDA increased 25.5% to
$181.2 million for the fourth quarter of fiscal 2023 compared with
$144.4 million for the fourth quarter of the prior year. For fiscal
2023, adjusted EBITDA was $426.8 million compared with $478.7
million in the prior year.
- Consolidated contracts in the
fourth quarter of fiscal 2023 increased 55.8% to 938 homes ($564.1
million) compared with 602 homes ($343.7 million) in the same
quarter last year. Contracts, including domestic unconsolidated
joint ventures1, for the three months ended October 31, 2023,
increased 51.5% to 1,065 homes ($648.4 million) compared with 703
homes ($412.9 million) in the fourth quarter of fiscal 2022.
- As of October 31, 2023,
consolidated community count was 113 communities, compared with 102
communities at July 31, 2023 and 121 communities on October 31,
2022. Community count, including domestic unconsolidated joint
ventures, was 129 as of October 31, 2023 compared with 122
communities at July 31, 2023 and 133 communities at the end of the
prior year.
- Consolidated contracts per
community increased 66.0% year-over-year to 8.3 in the fourth
quarter of fiscal 2023 compared with 5.0 contracts per community
for the fourth quarter of fiscal 2022. Contracts per community,
including domestic unconsolidated joint ventures, increased 56.6%
to 8.3 in the three months ended October 31, 2023 compared with 5.3
contracts per community in the same quarter one year ago.
- The dollar value of consolidated
contract backlog, as of October 31, 2023, decreased 16.4% to $1.06
billion compared with $1.27 billion as of October 31, 2022. The
dollar value of contract backlog, including domestic unconsolidated
joint ventures, as of October 31, 2023, decreased 12.5% to $1.32
billion compared with $1.50 billion as of October 31, 2022.
- The gross contract cancellation
rate for consolidated contracts was 25% for the fourth quarter
ended October 31, 2023 compared with 41% in the fiscal 2022 fourth
quarter. The gross contract cancellation rate for contracts,
including domestic unconsolidated joint ventures, was 24% for the
fourth quarter of fiscal 2023 compared with 39% in the fourth
quarter of the prior year.
(1)When we refer to “Domestic Unconsolidated
Joint Ventures”, we are excluding results from our multi-community
unconsolidated joint venture in the Kingdom of Saudi Arabia
(KSA).
LIQUIDITY AND INVENTORY AS OF OCTOBER
31, 2023:
- During the fourth quarter of fiscal
2023, land and land development spending was $219.6 million
compared with $205.2 million in the same quarter one year ago. For
fiscal 2023, land and land development spending was $679.3 million
compared with $759.3 million for the previous year.
- Total liquidity as of October 31,
2023 was $564.2 million, the highest level since the third quarter
of fiscal 2009 and significantly above our targeted liquidity range
of $170 million to $245 million.
- In August of 2023, we redeemed $100
million principal amount of our 7.75% Senior Secured 1.125 Lien
Notes due 2026, at a purchase price of $102.2 million, which
included accrued and unpaid interest and in September 2023, we
repurchased $45.0 million principal amount of our 10.0% Senior
Secured 1.75 Lien Notes due 2025 at a purchase price of $46.7
million, which included accrued and unpaid interest.
- In November 2023, in conjunction
with the debt refinancing, discussed below, the Company retired an
additional $113.5 million principal amount of its 10.00% Senior
Secured 1.75 Lien Notes due 2025, at par plus accrued and unpaid
interest, two years in advance of maturity. We have reduced our
total debt by $704 million, or 40.2%, since the beginning of fiscal
2020.
- In the fourth quarter of fiscal
2023, approximately 4,800 lots were put under option or acquired in
49 consolidated communities.
- As of October 31, 2023, our total
controlled consolidated lots were 31,726, an increase compared with
both 31,518 lots at the end of the fourth quarter of the previous
year and 29,487 lots at July 31, 2023. Based on trailing
twelve-month deliveries, the current position equaled a 6.5 years’
supply.
- Total homebuilding debt to
capitalization as of October 31, 2023 was 66.3%, a significant
improvement from 88.7% as of October 31, 2021. Net homebuilding
debt to net capitalization as of October 31, 2023 was 54.9%, an
even more significant improvement from 86.6% as of October 31,
2021.
DEBT REFINANCING:
- The Company issued and sold in a
private placement $225.0 million aggregate principal amount of new
8.0% Senior Secured 1.125 Lien Notes due 2028 and $430.0 million
aggregate principal amount of new 11.75% Senior Secured 1.25 Lien
Notes due 2029.
- The Company redeemed with the
proceeds from the new issuances all outstanding amounts of each
series of its existing secured notes consisting of 7.75% Senior
Secured 1.125 Lien Notes due 2026, 10.5% Senior Secured 1.25 Lien
Notes due 2026, 11.25% Senior Secured 1.5 Lien Notes due 2026 and
10.0% Senior Secured 1.75 Lien Notes due 2025.
- The Company entered into a Third
Amendment to the Credit Agreement governing its $125 million
secured revolving credit facility which, among other things,
extended the final scheduled maturity thereof by two years to June
30, 2026.
- Key benefits of the refinancing
- Increased maturity runway: The
transaction refinanced all of the Company’s secured debt maturing
in fiscal 2026 and proactively extended these maturities until the
fourth quarters of fiscal 2028 and fiscal 2029.
- Nominal increase in interest
incurred: Given the recent rise in interest rates, we are pleased
that the transaction resulted in almost no increase in annual
interest incurred.
- Extended the revolver maturity: The
transaction extended the maturity of the revolver, which was the
nearest term maturity, from next fiscal year to the third quarter
of fiscal 2026.
FINANCIAL
GUIDANCE(2):
The Company is providing guidance for total
revenues, adjusted homebuilding gross margin, adjusted income
before income taxes and adjusted EBITDA for the first quarter of
fiscal 2024. Financial guidance below assumes no adverse changes in
current market conditions, including further deterioration in our
supply chain or material increases in mortgage rates, inflation or
cancellation rates, and excludes further impact to SG&A
expenses from phantom stock expense related solely to stock price
movements from the closing price of $69.48 on October 31, 2023.
For the first quarter of fiscal 2024, total
revenues are expected to be between $525 million and $625 million,
adjusted homebuilding gross margin is expected to be between 22.0%
and 23.5%, adjusted income before income taxes is expected to be
between $25 million and $40 million and adjusted EBITDA is expected
to be between $55 million and $70 million.
(2)The Company cannot provide a reconciliation
between its non-GAAP projections and the most directly comparable
GAAP measures without unreasonable efforts because it is unable to
predict with reasonable certainty the ultimate outcome of certain
significant items required for the reconciliation. These items
include, but are not limited to, land-related charges, inventory
impairments and land option write-offs and loss on extinguishment
of debt, net. These items are uncertain, depend on various factors
and could have a material impact on GAAP reported results.
COMMENTS FROM MANAGEMENT:
“We are thrilled with our operating results for
the fourth quarter and the fiscal year, as they far exceeded our
expectations at the onset of the year. Total revenues, adjusted
EBITDA, adjusted income before income taxes, EPS, and book value
per common share all exceeded the upper end of our guidance,”
stated Ara K. Hovnanian, Chairman of the Board, President and Chief
Executive Officer. “Demand for new homes remains healthy and is
supported by strong demographic trends, a resilient job market and
a low supply of existing homes for sale. Our sales pace declined in
the fourth quarter as mortgage rates rose and affordability
worsened. However, we had an ample supply of QMI homes, which, when
combined with rate buydowns through our mortgage company, allowed
us to offer incentives to help make homes more affordable for our
homebuyers. This led to a 66% year-over-year improvement in
contracts per community for the quarter. We will continue to adjust
incentives to maintain an acceptable sales pace. Fortunately, while
sales slowed during the quarter, gross margins remained high, which
helps absorb the higher cost of incentives and rate buy downs.”
“We ended the year with $564 million of total
liquidity, which is more than twice the upper end of our target
range. We refinanced over $600 million of secured debt, including
$114 million from redemptions that occurred after year end, which
extended the maturities from the first and second quarters of
fiscal 2026 until the fourth quarters of fiscal 2028 and fiscal
2029. Our excess liquidity will allow us to further grow our land
position and thus increase our community count, which should result
in higher levels of profitability in future years. At the same
time, our strong cash flow allows us to continue to strengthen our
balance sheet. Given our rapidly growing book value and significant
debt reductions, which benefited from enhanced cash flow that
resulted from our deferred tax asset, we think it is appropriate to
consider a variety of metrics, including return on equity,
enterprise value to adjusted EBITDA, EBIT return on investment and
price to earnings multiple, when establishing a fair value for our
stock. As we look ahead, we are excited about our prospects given
the strength of long-term fundamentals underlying the new home
market.”
WEBCAST INFORMATION:
Hovnanian Enterprises will webcast its fiscal
2023 fourth quarter financial results conference call at 11:00 a.m.
E.T. on Tuesday, December 5, 2023. 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, 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 income before income taxes,
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 income before income taxes to
income before income taxes is presented in a table attached to this
earnings release.
Net homebuilding debt to net
capitalization ratio is a non-GAAP financial measure we calculate
by dividing (i) nonrecourse mortgages secured by inventory, net of
debt issuance costs and senior notes and credit facilities (net of
discounts, premiums and debt issuance costs), net of cash and cash
equivalents (“net homebuilding debt”), by (ii) the sum of net
homebuilding debt and total equity (“net capitalization”). Because
we use the ratio of net homebuilding debt to net capitalization to
evaluate our performance against other companies in the
homebuilding industry, we believe this measure is also relevant and
useful to investors for that reason. The calculation of net
homebuilding debt to net capitalization ratio is presented in a
table attached to this earnings release.
Total liquidity is comprised of $434.1
million of cash and cash equivalents, $5.1 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, 2023.
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, mortgage rates, inflation,
supply chain issues, 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, including as a result of
instability in the banking sector; (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) public health issues such as
major epidemic or 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, 2022 and
the Company’s Quarterly Reports on Form 10-Q for the quarterly
periods during fiscal 2023 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, 2023 |
| Statements of
consolidated operations |
| (In thousands,
except per share data) |
|
|
|
Three Months Ended |
|
Year Ended |
|
|
|
October 31, |
|
October 31, |
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
(Unaudited) |
|
(Unaudited) |
| Total
revenues |
$ |
887,032 |
|
|
$ |
886,788 |
|
|
$ |
2,756,016 |
|
|
$ |
2,922,231 |
|
| Costs and expenses
(1) |
|
766,276 |
|
|
|
800,422 |
|
|
|
2,517,587 |
|
|
|
2,624,716 |
|
| Loss on
extinguishment of debt, net |
|
(21,556 |
) |
|
|
- |
|
|
|
(25,638 |
) |
|
|
(6,795 |
) |
| Income from
unconsolidated joint ventures |
|
22,191 |
|
|
|
5,114 |
|
|
|
43,160 |
|
|
|
29,033 |
|
| Income before
income taxes |
|
121,391 |
|
|
|
91,480 |
|
|
|
255,951 |
|
|
|
319,753 |
|
| Income tax
provision |
|
24,126 |
|
|
|
35,847 |
|
|
|
50,060 |
|
|
|
94,263 |
|
| Net income |
|
97,265 |
|
|
|
55,633 |
|
|
|
205,891 |
|
|
|
225,490 |
|
| Less: preferred
stock dividends |
|
2,668 |
|
|
|
2,668 |
|
|
|
10,675 |
|
|
|
10,675 |
|
| Net income
available to common stockholders |
$ |
94,597 |
|
|
$ |
52,965 |
|
|
$ |
195,216 |
|
|
$ |
214,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per share
data: |
|
|
|
|
|
|
|
|
|
| Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share |
$ |
13.98 |
|
|
$ |
7.55 |
|
|
$ |
28.76 |
|
|
$ |
30.31 |
|
|
|
Weighted average number of common shares outstanding |
6,317 |
|
|
|
6,478 |
|
|
|
6,230 |
|
|
|
6,437 |
|
|
Assuming dilution: |
|
|
|
|
|
Net income per common
share |
$ |
13.05 |
|
|
$ |
7.24 |
|
|
$ |
26.88 |
|
|
$ |
29.00 |
|
|
|
Weighted average number of common shares outstanding |
6,764 |
|
|
|
6,750 |
|
|
|
6,666 |
|
|
|
6,728 |
|
| |
| (1) Includes
inventory impairments and land option write-offs. |
| |
| |
| Hovnanian
Enterprises, Inc. |
| October
31, 2023 |
| 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, |
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
(Unaudited) |
|
(Unaudited) |
| Income before
income taxes |
$ |
121,391 |
|
|
$ |
91,480 |
|
|
$ |
255,951 |
|
|
$ |
319,753 |
|
| Inventory
impairments and land option write-offs |
|
614 |
|
|
|
12,239 |
|
|
|
1,536 |
|
|
|
14,076 |
|
| Loss on
extinguishment of debt, net |
|
21,556 |
|
|
|
- |
|
|
|
25,638 |
|
|
|
6,795 |
|
| Income before
income taxes excluding land-related charges and loss on
extinguishment of debt, net (1) |
$ |
143,561 |
|
|
$ |
103,719 |
|
|
$ |
283,125 |
|
|
$ |
340,624 |
|
| |
| (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, 2023 |
| Gross margin |
| (In
thousands) |
|
|
|
Homebuilding Gross Margin |
|
Homebuilding Gross Margin |
|
|
|
Three Months Ended |
|
Year Ended |
|
|
|
October 31, |
|
October 31, |
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
Sale of homes |
|
$ |
829,733 |
|
|
$ |
866,611 |
|
|
$ |
2,630,457 |
|
|
$ |
2,840,454 |
|
| Cost of sales, excluding
interest expense and land charges (1) |
|
|
626,424 |
|
|
|
656,805 |
|
|
|
2,032,136 |
|
|
|
2,131,208 |
|
| Homebuilding gross margin,
before cost of sales interest expense and land charges (2) |
|
|
203,309 |
|
|
|
209,806 |
|
|
|
598,321 |
|
|
|
709,246 |
|
| Cost of sales interest
expense, excluding land sales interest expense |
|
|
25,101 |
|
|
|
27,343 |
|
|
|
79,894 |
|
|
|
85,198 |
|
| Homebuilding gross margin,
after cost of sales interest expense, before land charges (2) |
|
|
178,208 |
|
|
|
182,463 |
|
|
|
518,427 |
|
|
|
624,048 |
|
| Land charges |
|
|
614 |
|
|
|
12,239 |
|
|
|
1,536 |
|
|
|
14,076 |
|
| Homebuilding gross margin |
|
$ |
177,594 |
|
|
$ |
170,224 |
|
|
$ |
516,891 |
|
|
$ |
609,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Homebuilding gross margin
percentage |
|
|
21.4% |
|
|
|
19.6% |
|
|
|
19.6% |
|
|
|
21.5% |
|
| Homebuilding gross margin
percentage, before cost of sales interest expense and land charges
(2) |
|
|
24.5% |
|
|
|
24.2% |
|
|
|
22.7% |
|
|
|
25.0% |
|
| Homebuilding gross margin
percentage, after cost of sales interest expense, before land
charges (2) |
|
|
21.5% |
|
|
|
21.1% |
|
|
|
19.7% |
|
|
|
22.0% |
|
|
|
|
|
|
Land Sales Gross Margin |
|
Land Sales Gross Margin |
|
|
|
Three Months Ended |
|
Year Ended |
|
|
|
October 31, |
|
October 31, |
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
(Unaudited) |
|
(Unaudited) |
| Land and lot sales |
|
$ |
32,175 |
|
|
$ |
15 |
|
|
$ |
48,217 |
|
|
$ |
16,202 |
|
| Cost of sales, excluding
interest (1) |
|
|
10,724 |
|
|
|
83 |
|
|
|
20,664 |
|
|
|
5,855 |
|
| Land and lot sales gross
margin, excluding interest and land charges |
|
|
21,451 |
|
|
|
(68 |
) |
|
|
27,553 |
|
|
|
10,347 |
|
| Land and lot sales interest
expense |
|
|
- |
|
|
|
21 |
|
|
|
926 |
|
|
|
42 |
|
| Land and lot sales gross
margin, including interest |
|
$ |
21,451 |
|
|
$ |
(89 |
) |
|
$ |
26,627 |
|
|
$ |
10,305 |
|
|
|
|
|
| (1) Does not
include cost associated with walking away from land options or
inventory impairment losses which are recorded as Inventory
impairment loss and land option write-offs in the Consolidated
Statements of Operations. |
| |
| (2) Homebuilding
gross margin, before cost of sales interest expense and land
charges, and homebuilding gross margin percentage, before cost of
sales interest expense and land charges, are non-GAAP financial
measures. The most directly comparable GAAP financial measures are
homebuilding gross margin and homebuilding gross margin percentage,
respectively. |
| |
| Hovnanian
Enterprises, Inc. |
| October
31, 2023 |
| Reconciliation of
adjusted EBITDA to net income |
| (In
thousands) |
|
|
Three Months Ended |
|
Year Ended |
|
|
October 31, |
|
October 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
(Unaudited) |
|
(Unaudited) |
|
Net income |
$ |
97,265 |
|
|
$ |
55,633 |
|
|
$ |
205,891 |
|
|
$ |
225,490 |
|
| Income tax provision |
|
24,126 |
|
|
|
35,847 |
|
|
|
50,060 |
|
|
|
94,263 |
|
| Interest expense |
|
36,087 |
|
|
|
39,265 |
|
|
|
134,902 |
|
|
|
132,583 |
|
| EBIT (1) |
|
157,478 |
|
|
|
130,745 |
|
|
|
390,853 |
|
|
|
452,336 |
|
| Depreciation and
amortization |
|
1,575 |
|
|
|
1,448 |
|
|
|
8,798 |
|
|
|
5,457 |
|
| EBITDA (2) |
|
159,053 |
|
|
|
132,193 |
|
|
|
399,651 |
|
|
|
457,793 |
|
| Inventory impairments and land
option write-offs |
|
614 |
|
|
|
12,239 |
|
|
|
1,536 |
|
|
|
14,076 |
|
| Loss on extinguishment of
debt, net |
|
21,556 |
|
|
|
- |
|
|
|
25,638 |
|
|
|
6,795 |
|
| Adjusted EBITDA (3) |
$ |
181,223 |
|
|
$ |
144,432 |
|
|
$ |
426,825 |
|
|
$ |
478,664 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest incurred |
$ |
32,873 |
|
|
$ |
34,725 |
|
|
$ |
136,535 |
|
|
$ |
134,024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA to interest
incurred |
|
5.51 |
|
|
|
4.16 |
|
|
|
3.13 |
|
|
|
3.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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 and inventory impairments and land
option write-offs and loss on extinguishment of debt, net. |
| |
| |
| |
| Hovnanian
Enterprises, Inc. |
| October
31, 2023 |
| Interest
incurred, expensed and capitalized |
| (In
thousands) |
|
|
Three Months Ended |
|
Year Ended |
|
|
October 31, |
|
October 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
(Unaudited) |
|
(Unaudited) |
| Interest capitalized at
beginning of period |
$ |
55,274 |
|
|
$ |
64,140 |
|
|
$ |
59,600 |
|
|
$ |
58,159 |
|
| Plus: interest incurred |
|
32,873 |
|
|
|
34,725 |
|
|
|
136,535 |
|
|
|
134,024 |
|
| Less: interest expensed |
|
(36,087 |
) |
|
|
(39,265 |
) |
|
|
(134,902 |
) |
|
|
(132,583 |
) |
| Less: interest contributed to
unconsolidated joint venture (1) |
|
- |
|
|
|
- |
|
|
|
(9,456 |
) |
|
|
- |
|
| Plus: interest acquired from
unconsolidated joint venture (2) |
|
- |
|
|
|
- |
|
|
|
283 |
|
|
|
- |
|
| Interest capitalized at end of
period (3) |
$ |
52,060 |
|
|
$ |
59,600 |
|
|
$ |
52,060 |
|
|
$ |
59,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Represents
capitalized interest which was included as part of the assets
contributed to joint ventures the company entered into during the
year ended October 31, 2023. There was no impact to the
Consolidated Statement of Operations as a result of these
transactions. |
| |
| (2) Represents
capitalized interest which was included as part of the assets
purchased from a joint venture the company closed out during the
year ended October 31, 2023. 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. |
| October
31, 2023 |
| Net Homebuilding
Debt to Net Capitalization Reconciliation |
| (In
thousands) |
| |
|
Year Ended |
|
|
|
October 31, |
|
|
|
2023 |
|
2021 |
|
|
|
(Unaudited) |
|
Nonrecourse mortgages secured by inventory, net of debt issuance
costs |
|
$ |
91,539 |
|
|
$ |
125,089 |
|
| Senior notes and credit
facilities (net of discounts, premiums and debt issuance
costs) |
|
|
1,051,491 |
|
|
|
1,248,373 |
|
| Total homebuilding debt |
|
$ |
1,143,030 |
|
|
$ |
1,373,462 |
|
| Total equity |
|
|
581,736 |
|
|
|
174,897 |
|
| Total capitalization |
|
$ |
1,724,766 |
|
|
$ |
1,548,359 |
|
|
|
|
|
|
|
|
|
| Total homebuilding debt to
capitalization |
|
|
66.3% |
|
|
|
88.7% |
|
|
|
|
|
|
|
|
|
| Total homebuilding debt |
|
$ |
1,143,030 |
|
|
$ |
1,373,462 |
|
| Cash and cash equivalents |
|
|
434,119 |
|
|
|
245,970 |
|
| Net homebuilding debt |
|
$ |
708,911 |
|
|
$ |
1,127,492 |
|
| Total equity |
|
$ |
581,736 |
|
|
$ |
174,897 |
|
| Net capitalization |
|
$ |
1,290,647 |
|
|
$ |
1,302,389 |
|
| |
|
|
|
|
|
|
| Net homebuilding debt to net
capitalization |
|
|
54.9% |
|
|
|
86.6% |
|
| |
|
|
|
|
|
|
|
|
|
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(In thousands, except per share data)(Unaudited) |
| |
| |
|
October 31, |
|
October 31, |
| |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
| ASSETS |
|
|
|
|
|
|
|
|
| Homebuilding: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
434,119 |
|
|
$ |
326,198 |
|
|
Restricted cash and cash equivalents |
|
|
8,431 |
|
|
|
13,382 |
|
|
Inventories: |
|
|
|
|
|
|
|
|
|
Sold and unsold homes and lots under development |
|
|
998,841 |
|
|
|
1,058,183 |
|
|
Land and land options held for future development or sale |
|
|
125,587 |
|
|
|
152,406 |
|
|
Consolidated inventory not owned |
|
|
224,758 |
|
|
|
308,595 |
|
|
Total inventories |
|
|
1,349,186 |
|
|
|
1,519,184 |
|
|
Investments in and advances to unconsolidated joint ventures |
|
|
97,886 |
|
|
|
74,940 |
|
|
Receivables, deposits and notes, net |
|
|
27,982 |
|
|
|
37,837 |
|
|
Property and equipment, net |
|
|
33,946 |
|
|
|
25,819 |
|
|
Prepaid expenses and other assets |
|
|
69,886 |
|
|
|
63,884 |
|
|
Total homebuilding |
|
|
2,021,436 |
|
|
|
2,061,244 |
|
| |
|
|
|
|
|
|
|
|
| Financial services |
|
|
168,671 |
|
|
|
155,993 |
|
| |
|
|
|
|
|
|
|
|
| Deferred tax assets, net |
|
|
302,833 |
|
|
|
344,793 |
|
| Total assets |
|
$ |
2,492,940 |
|
|
$ |
2,562,030 |
|
| |
|
|
|
|
|
|
|
|
| LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
| Homebuilding: |
|
|
|
|
|
|
|
|
|
Nonrecourse mortgages secured by inventory, net of debt issuance
costs |
|
$ |
91,539 |
|
|
$ |
144,805 |
|
|
Accounts payable and other liabilities |
|
|
415,480 |
|
|
|
439,952 |
|
|
Customers’ deposits |
|
|
51,419 |
|
|
|
74,020 |
|
|
Liabilities from inventory not owned, net of debt issuance
costs |
|
|
124,254 |
|
|
|
202,492 |
|
|
Senior notes and credit facilities (net of discounts, premiums and
debt issuance costs) |
|
|
1,051,491 |
|
|
|
1,146,547 |
|
|
Accrued interest |
|
|
26,926 |
|
|
|
32,415 |
|
|
Total homebuilding |
|
|
1,761,109 |
|
|
|
2,040,231 |
|
| |
|
|
|
|
|
|
|
|
| Financial services |
|
|
148,181 |
|
|
|
135,581 |
|
| |
|
|
|
|
|
|
|
|
| Income taxes payable |
|
|
1,861 |
|
|
|
3,167 |
|
| Total liabilities |
|
|
1,911,151 |
|
|
|
2,178,979 |
|
| |
|
|
|
|
|
|
|
|
| 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, 2023 and October 31, 2022 |
|
|
135,299 |
|
|
|
135,299 |
|
|
Common stock, Class A, $0.01 par value - authorized 16,000,000
shares; issued 6,247,308 shares at October 31, 2023 and 6,159,886
shares at October 31, 2022 |
|
|
62 |
|
|
|
62 |
|
|
Common stock, Class B, $0.01 par value (convertible to Class A at
time of sale) - authorized 2,400,000 shares; issued 776,750 shares
at October 31, 2023 and 733,374 shares at October 31, 2022 |
|
|
8 |
|
|
|
7 |
|
|
Paid in capital - common stock |
|
|
735,946 |
|
|
|
727,663 |
|
|
Accumulated deficit |
|
|
(157,197 |
) |
|
|
(352,413 |
) |
|
Treasury stock - at cost – 901,379 shares of Class A common stock
at October 31, 2023 and 782,901 shares at October 31, 2022; 27,669
shares of Class B common stock at October 31, 2023 and October 31,
2022 |
|
|
(132,382 |
) |
|
|
(127,582 |
) |
|
Total Hovnanian Enterprises, Inc. stockholders’ equity |
|
|
581,736 |
|
|
|
383,036 |
|
| Noncontrolling interest in
consolidated joint ventures |
|
|
53 |
|
|
|
15 |
|
| Total equity |
|
|
581,789 |
|
|
|
383,051 |
|
| Total liabilities and
equity |
|
$ |
2,492,940 |
|
|
$ |
2,562,030 |
|
| |
|
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS
OF OPERATIONS(In Thousands Except Per Share Data)(Unaudited) |
| |
| |
Three Months EndedOctober 31, |
Years EndedOctober 31, |
|
| |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale of homes |
$ |
829,733 |
|
|
$ |
866,611 |
|
|
$ |
2,630,457 |
|
|
$ |
2,840,454 |
|
|
Land sales and other revenues |
|
38,227 |
|
|
|
2,185 |
|
|
|
65,471 |
|
|
|
20,237 |
|
|
Total homebuilding |
|
867,960 |
|
|
|
868,796 |
|
|
|
2,695,928 |
|
|
|
2,860,691 |
|
|
Financial services |
|
19,072 |
|
|
|
17,992 |
|
|
|
60,088 |
|
|
|
61,540 |
|
|
Total revenues |
|
887,032 |
|
|
|
886,788 |
|
|
|
2,756,016 |
|
|
|
2,922,231 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales, excluding interest |
|
637,148 |
|
|
|
656,888 |
|
|
|
2,052,800 |
|
|
|
2,137,063 |
|
|
Cost of sales interest |
|
25,101 |
|
|
|
27,364 |
|
|
|
80,820 |
|
|
|
85,240 |
|
|
Inventory impairment loss and land option write-offs |
|
614 |
|
|
|
12,239 |
|
|
|
1,536 |
|
|
|
14,076 |
|
|
Total cost of sales |
|
662,863 |
|
|
|
696,491 |
|
|
|
2,135,156 |
|
|
|
2,236,379 |
|
|
Selling, general and administrative |
|
55,488 |
|
|
|
54,126 |
|
|
|
201,578 |
|
|
|
193,536 |
|
|
Total homebuilding expenses |
|
718,351 |
|
|
|
750,617 |
|
|
|
2,336,734 |
|
|
|
2,429,915 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial services |
|
11,173 |
|
|
|
10,437 |
|
|
|
40,723 |
|
|
|
42,419 |
|
|
Corporate general and administrative |
|
25,262 |
|
|
|
26,725 |
|
|
|
103,196 |
|
|
|
102,618 |
|
|
Other interest |
|
10,986 |
|
|
|
11,901 |
|
|
|
54,082 |
|
|
|
47,343 |
|
|
Other expense (income), net (1) |
|
504 |
|
|
|
742 |
|
|
|
(17,148 |
) |
|
|
2,421 |
|
|
Total expenses |
|
766,276 |
|
|
|
800,422 |
|
|
|
2,517,587 |
|
|
|
2,624,716 |
|
| Loss on extinguishment of
debt, net |
|
(21,556 |
) |
|
|
- |
|
|
|
(25,638 |
) |
|
|
(6,795 |
) |
| Income from unconsolidated
joint ventures |
|
22,191 |
|
|
|
5,114 |
|
|
|
43,160 |
|
|
|
29,033 |
|
| Income before income
taxes |
|
121,391 |
|
|
|
91,480 |
|
|
|
255,951 |
|
|
|
319,753 |
|
| State and federal income tax
provision: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State |
|
445 |
|
|
|
22,684 |
|
|
|
3,239 |
|
|
|
34,199 |
|
|
Federal |
|
23,681 |
|
|
|
13,163 |
|
|
|
46,821 |
|
|
|
60,064 |
|
|
Total income taxes |
|
24,126 |
|
|
|
35,847 |
|
|
|
50,060 |
|
|
|
94,263 |
|
| Net income |
|
97,265 |
|
|
|
55,633 |
|
|
|
205,891 |
|
|
|
225,490 |
|
| Less: preferred stock
dividends |
|
2,668 |
|
|
|
2,668 |
|
|
|
10,675 |
|
|
|
10,675 |
|
| Net income available to common
stockholders |
$ |
94,597 |
|
|
$ |
52,965 |
|
|
$ |
195,216 |
|
|
$ |
214,815 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share |
$ |
13.98 |
|
|
$ |
7.55 |
|
|
$ |
28.76 |
|
|
$ |
30.31 |
|
|
Weighted-average number of common shares outstanding |
|
6,317 |
|
|
|
6,478 |
|
|
|
6,230 |
|
|
|
6,437 |
|
| Assuming dilution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share |
$ |
13.05 |
|
|
$ |
7.24 |
|
|
$ |
26.88 |
|
|
$ |
29.00 |
|
|
Weighted-average number of common shares outstanding |
|
6,764 |
|
|
|
6,750 |
|
|
|
6,666 |
|
|
|
6,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes gain on consolidation of a joint
venture of $19.1 million for the year ended October 31, 2023. |
| |
| 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, |
|
|
|
2023 |
2022 |
% Change |
2023 |
2022 |
% Change |
2023 |
2022 |
% Change |
|
Northeast |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(DE, IL, MD, NJ, OH, VA, WV) |
Home |
|
355 |
|
232 |
53.0% |
|
532 |
|
618 |
(13.9)% |
|
617 |
|
850 |
(27.4)% |
|
|
Dollars |
$ |
251,558 |
$ |
145,816 |
72.5% |
$ |
309,935 |
$ |
363,260 |
(14.7)% |
$ |
420,100 |
$ |
464,173 |
(9.5)% |
|
|
Avg. Price |
$ |
708,614 |
$ |
628,517 |
12.7% |
$ |
582,585 |
$ |
587,799 |
(0.9)% |
$ |
680,875 |
$ |
546,086 |
24.7% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(FL, GA, SC) |
Home |
|
136 |
|
176 |
(22.7)% |
|
231 |
|
248 |
(6.9)% |
|
615 |
|
502 |
22.5% |
|
|
Dollars |
$ |
75,170 |
$ |
86,248 |
(12.8)% |
$ |
123,942 |
$ |
123,378 |
0.5% |
$ |
304,251 |
$ |
310,889 |
(2.1)% |
|
|
Avg. Price |
$ |
552,721 |
$ |
490,045 |
12.8% |
$ |
536,545 |
$ |
497,492 |
7.9% |
$ |
494,717 |
$ |
619,301 |
(20.1)% |
|
West |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(AZ, CA, TX) |
Home |
|
447 |
|
194 |
130.4% |
|
754 |
|
733 |
2.9% |
|
592 |
|
834 |
(29.0)% |
|
|
Dollars |
$ |
237,361 |
$ |
111,616 |
112.7% |
$ |
395,856 |
$ |
379,973 |
4.2% |
$ |
336,263 |
$ |
493,617 |
(31.9)% |
|
|
Avg. Price |
$ |
531,009 |
$ |
575,340 |
(7.7)% |
$ |
525,008 |
$ |
518,381 |
1.3% |
$ |
568,012 |
$ |
591,867 |
(4.0)% |
|
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
938 |
|
602 |
55.8% |
|
1,517 |
|
1,599 |
(5.1)% |
|
1,824 |
|
2,186 |
(16.6)% |
|
|
Dollars |
$ |
564,089 |
$ |
343,680 |
64.1% |
$ |
829,733 |
$ |
866,611 |
(4.3)% |
$ |
1,060,614 |
$ |
1,268,679 |
(16.4)% |
|
|
Avg. Price |
$ |
601,374 |
$ |
570,897 |
5.3% |
$ |
546,956 |
$ |
541,971 |
0.9% |
$ |
581,477 |
$ |
580,366 |
0.2% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Excluding KSA JV) |
Home |
|
127 |
|
101 |
25.7% |
|
196 |
|
180 |
8.9% |
|
372 |
|
311 |
19.6% |
|
|
Dollars |
$ |
84,273 |
$ |
69,190 |
21.8% |
$ |
144,004 |
$ |
114,633 |
25.6% |
$ |
255,639 |
$ |
235,777 |
8.4% |
|
|
Avg. Price |
$ |
663,567 |
$ |
685,050 |
(3.1)% |
$ |
734,714 |
$ |
636,850 |
15.4% |
$ |
687,202 |
$ |
758,125 |
(9.4)% |
|
Grand Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
1,065 |
|
703 |
51.5% |
|
1,713 |
|
1,779 |
(3.7)% |
|
2,196 |
|
2,497 |
(12.1)% |
|
|
Dollars |
$ |
648,362 |
$ |
412,870 |
57.0% |
$ |
973,737 |
$ |
981,244 |
(0.8)% |
$ |
1,316,253 |
$ |
1,504,456 |
(12.5)% |
|
|
Avg. Price |
$ |
608,791 |
$ |
587,296 |
3.7% |
$ |
568,440 |
$ |
551,571 |
3.1% |
$ |
599,387 |
$ |
602,505 |
(0.5)% |
| |
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
1 |
|
4 |
(75.0)% |
|
2,176 |
|
0 |
0.0% |
|
50 |
|
2,213 |
(97.7)% |
|
|
Dollars |
$ |
147 |
$ |
606 |
(75.7)% |
$ |
341,318 |
$ |
0 |
0.0% |
$ |
8,124 |
$ |
347,420 |
(97.7)% |
|
|
Avg. Price |
$ |
147,000 |
$ |
151,500 |
(3.0)% |
$ |
156,856 |
$ |
0 |
0.0% |
$ |
162,480 |
$ |
156,991 |
3.5% |
| |
|
DELIVERIES INCLUDE EXTRAS |
| Notes: |
| (1) Contracts are
defined as new contracts signed during the period for the purchase
of homes, less cancellations of prior contracts. |
| (2) Represents
home deliveries, home revenues and average prices for our
unconsolidated homebuilding joint ventures for the period. We
provide this data as a supplement to our consolidated results as an
indicator of the volume managed in our unconsolidated homebuilding
joint ventures. Our proportionate share of the income or loss of
unconsolidated homebuilding and land development joint ventures is
reflected as a separate line item in our consolidated financial
statements under “Income from unconsolidated joint ventures”. |
| |
| HOVNANIAN
ENTERPRISES, INC. |
| (DOLLARS
IN THOUSANDS EXCEPT AVG. PRICE) |
| (SEGMENT
DATA EXCLUDES UNCONSOLIDATED
JOINT VENTURES) |
|
|
| |
|
Contracts (1) |
Deliveries |
Contract |
| |
|
Years Ended |
Years Ended |
Backlog |
| |
|
October 31, |
October 31, |
October 31, |
|
|
|
2023 |
2022 |
% Change |
2023 |
2022 |
% Change |
2023 |
2022 |
% Change |
|
Northeast (2) (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(DE, IL, MD, NJ, OH, VA, WV) |
Home |
|
1,445 |
|
1,460 |
(1.0)% |
|
1,618 |
|
1,895 |
(14.6)% |
|
617 |
|
850 |
(27.4)% |
|
|
Dollars |
$ |
937,153 |
$ |
857,240 |
9.3% |
$ |
933,156 |
$ |
1,068,098 |
(12.6)% |
$ |
420,100 |
$ |
464,173 |
(9.5)% |
|
|
Avg. Price |
$ |
648,549 |
$ |
587,151 |
10.5% |
$ |
576,734 |
$ |
563,640 |
2.3% |
$ |
680,875 |
$ |
546,086 |
24.7% |
|
Southeast (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(FL, GA, SC) |
Home |
|
948 |
|
731 |
29.7% |
|
776 |
|
650 |
19.4% |
|
615 |
|
502 |
22.5% |
|
|
Dollars |
$ |
445,970 |
$ |
412,975 |
8.0% |
$ |
419,656 |
$ |
323,511 |
29.7% |
$ |
304,251 |
$ |
310,889 |
(2.1)% |
|
|
Avg. Price |
$ |
470,432 |
$ |
564,945 |
(16.7)% |
$ |
540,794 |
$ |
497,709 |
8.7% |
$ |
494,717 |
$ |
619,301 |
(20.1)% |
|
West (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(AZ, CA, TX) |
Home |
|
2,254 |
|
2,286 |
(1.4)% |
|
2,484 |
|
2,993 |
(17.0)% |
|
592 |
|
834 |
(29.0)% |
|
|
Dollars |
$ |
1,126,011 |
$ |
1,200,211 |
(6.2)% |
$ |
1,277,645 |
$ |
1,448,845 |
(11.8)% |
$ |
336,263 |
$ |
493,617 |
(31.9)% |
|
|
Avg. Price |
$ |
499,561 |
$ |
525,027 |
(4.9)% |
$ |
514,350 |
$ |
484,078 |
6.3% |
$ |
568,012 |
$ |
591,867 |
(4.0)% |
|
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
4,647 |
|
4,477 |
3.8% |
|
4,878 |
|
5,538 |
(11.9)% |
|
1,824 |
|
2,186 |
(16.6)% |
|
|
Dollars |
$ |
2,509,134 |
$ |
2,470,426 |
1.6% |
$ |
2,630,457 |
$ |
2,840,454 |
(7.4)% |
$ |
1,060,614 |
$ |
1,268,679 |
(16.4)% |
|
|
Avg. Price |
$ |
539,947 |
$ |
551,804 |
(2.1)% |
$ |
539,249 |
$ |
512,902 |
5.1% |
$ |
581,477 |
$ |
580,366 |
0.2% |
|
Unconsolidated Joint Ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Excluding KSA JV) (2) (3) (4) |
Home |
|
525 |
|
488 |
7.6% |
|
595 |
|
552 |
7.8% |
|
372 |
|
311 |
19.6% |
|
|
Dollars |
$ |
357,456 |
$ |
337,775 |
5.8% |
$ |
424,335 |
$ |
343,617 |
23.5% |
$ |
255,639 |
$ |
235,777 |
8.4% |
|
|
Avg. Price |
$ |
680,869 |
$ |
692,162 |
(1.6)% |
$ |
713,168 |
$ |
622,495 |
14.6% |
$ |
687,202 |
$ |
758,125 |
(9.4)% |
|
Grand Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
5,172 |
|
4,965 |
4.2% |
|
5,473 |
|
6,090 |
(10.1)% |
|
2,196 |
|
2,497 |
(12.1)% |
|
|
Dollars |
$ |
2,866,590 |
$ |
2,808,201 |
2.1% |
$ |
3,054,792 |
$ |
3,184,071 |
(4.1)% |
$ |
1,316,253 |
$ |
1,504,456 |
(12.5)% |
|
|
Avg. Price |
$ |
554,252 |
$ |
565,599 |
(2.0)% |
$ |
558,157 |
$ |
522,836 |
6.8% |
$ |
599,387 |
$ |
602,505 |
(0.5)% |
|
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
13 |
|
300 |
(95.7)% |
|
2,176 |
|
0 |
0.0% |
|
50 |
|
2,213 |
(97.7)% |
|
|
Dollars |
$ |
2,022 |
$ |
47,036 |
(95.7)% |
$ |
341,318 |
$ |
0 |
0.0% |
$ |
8,124 |
$ |
347,420 |
(97.7)% |
|
|
Avg. Price |
$ |
155,538 |
$ |
156,787 |
(0.8)% |
$ |
156,856 |
$ |
0 |
0.0% |
$ |
162,480 |
$ |
156,991 |
3.5% |
| |
|
DELIVERIES INCLUDE EXTRAS |
| Notes: |
| (1) Contracts are
defined as new contracts signed during the period for the purchase
of homes, less cancellations of prior contracts. |
| (2) Reflects the
reclassification of 38 homes and $32.3 million of contract backlog
as of April 30, 2023 from the unconsolidated joint ventures to the
consolidated Northeast segment. This is related to the assets and
liabilities acquired from a joint venture the company closed out
during the three months ended April 30, 2023. |
| (3) Reflects the
reclassification of 90 homes and $73.7 million, 59 homes and $33.0
million, and 12 homes and $5.7 million of contract backlog from the
consolidated Northeast, Southeast and West segments, respectively,
to unconsolidated joint ventures as of July 31, 2023. This is
related to the assets and liabilities contributed to a joint
venture by the company during the three months ended July 31,
2023. |
| (4) 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, |
|
|
|
2023 |
2022 |
% Change |
2023 |
2022 |
% Change |
2023 |
2022 |
% Change |
|
Northeast |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unconsolidated Joint Ventures) |
Home |
|
61 |
|
67 |
(9.0)% |
|
99 |
|
81 |
22.2% |
|
160 |
|
172 |
(7.0)% |
|
(Excluding KSA JV) |
Dollars |
$ |
45,261 |
$ |
46,714 |
(3.1)% |
$ |
78,491 |
$ |
55,740 |
40.8% |
$ |
121,561 |
$ |
125,004 |
(2.8)% |
|
(DE, IL, MD, NJ, OH, VA, WV) |
Avg. Price |
$ |
741,984 |
$ |
697,224 |
6.4% |
$ |
792,838 |
$ |
688,148 |
15.2% |
$ |
759,756 |
$ |
726,767 |
4.5% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unconsolidated Joint Ventures) |
Home |
|
49 |
|
31 |
58.1% |
|
73 |
|
67 |
9.0% |
|
186 |
|
129 |
(7.0)% |
|
(FL, GA, SC) |
Dollars |
$ |
29,476 |
$ |
20,693 |
42.4% |
$ |
52,360 |
$ |
41,979 |
24.7% |
$ |
119,857 |
$ |
105,428 |
(2.8)% |
|
|
Avg. Price |
$ |
601,551 |
$ |
667,516 |
(9.9)% |
$ |
717,260 |
$ |
626,552 |
14.5% |
$ |
644,392 |
$ |
817,271 |
4.5% |
|
West |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unconsolidated Joint Ventures) |
Home |
|
17 |
|
3 |
466.7% |
|
24 |
|
32 |
(25.0)% |
|
26 |
|
10 |
(7.0)% |
|
(AZ, CA, TX) |
Dollars |
$ |
9,536 |
$ |
1,782 |
435.1% |
$ |
13,153 |
$ |
16,914 |
(22.2)% |
$ |
14,221 |
$ |
5,345 |
(2.8)% |
|
|
Avg. Price |
$ |
560,941 |
$ |
594,000 |
(5.6)% |
$ |
548,042 |
$ |
528,563 |
3.7% |
$ |
546,962 |
$ |
534,500 |
4.5% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Excluding KSA JV) |
Home |
|
127 |
|
101 |
25.7% |
|
196 |
|
180 |
8.9% |
|
372 |
|
311 |
(7.0)% |
|
|
Dollars |
$ |
84,273 |
$ |
69,190 |
21.8% |
$ |
144,004 |
$ |
114,633 |
25.6% |
$ |
255,639 |
$ |
235,777 |
(2.8)% |
|
|
Avg. Price |
$ |
663,567 |
$ |
685,050 |
(3.1)% |
$ |
734,714 |
$ |
636,850 |
15.4% |
$ |
687,202 |
$ |
758,125 |
4.5% |
| |
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
1 |
|
4 |
(75.0)% |
|
2,176 |
|
0 |
0.0% |
|
50 |
|
2,213 |
(7.0)% |
|
|
Dollars |
$ |
147 |
$ |
606 |
(75.7)% |
$ |
341,318 |
$ |
0 |
0.0% |
$ |
8,124 |
$ |
347,420 |
(2.8)% |
|
|
Avg. Price |
$ |
147,000 |
$ |
151,500 |
(3.0)% |
$ |
156,856 |
$ |
0 |
0.0% |
$ |
162,480 |
$ |
156,991 |
4.5% |
| |
|
DELIVERIES INCLUDE EXTRAS |
| Notes: |
| (1) Contracts are
defined as new contracts signed during the period for the purchase
of homes, less cancellations of prior contracts. |
| (2) Represents
home deliveries, home revenues and average prices for our
unconsolidated homebuilding joint ventures for the period. We
provide this data as a supplement to our consolidated results as an
indicator of the volume managed in our unconsolidated homebuilding
joint ventures. Our proportionate share of the income or loss of
unconsolidated homebuilding and land development joint ventures is
reflected as a separate line item in our consolidated financial
statements under “Income from unconsolidated joint ventures”. |
| |
| HOVNANIAN
ENTERPRISES, INC. |
| (DOLLARS
IN THOUSANDS EXCEPT AVG. PRICE) |
| (SEGMENT
DATA UNCONSOLIDATED JOINT VENTURES ONLY) |
| |
| |
|
Contracts (1) |
Deliveries |
Contract |
| |
|
Years Ended |
Years Ended |
Backlog |
| |
|
October 31, |
October 31, |
October 31, |
|
|
|
2023 |
2022 |
% Change |
2023 |
2022 |
% Change |
2023 |
2022 |
% Change |
|
Northeast (2) (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unconsolidated Joint Ventures) |
Home |
|
234 |
|
255 |
(8.2)% |
|
306 |
|
209 |
46.4% |
|
160 |
|
172 |
(7.0)% |
|
(Excluding KSA JV) |
Dollars |
$ |
178,235 |
$ |
181,777 |
(1.9)% |
$ |
229,747 |
$ |
143,571 |
60.0% |
$ |
121,561 |
$ |
125,004 |
(2.8)% |
|
(DE, IL, MD, NJ, OH, VA, WV) |
Avg. Price |
$ |
761,688 |
$ |
712,851 |
6.9% |
$ |
750,807 |
$ |
686,943 |
9.3% |
$ |
759,756 |
$ |
726,767 |
4.5% |
|
Southeast (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unconsolidated Joint Ventures) |
Home |
|
219 |
|
160 |
36.9% |
|
221 |
|
242 |
(8.7)% |
|
186 |
|
129 |
44.2% |
|
(FL, GA, SC) |
Dollars |
$ |
139,492 |
$ |
117,800 |
18.4% |
$ |
158,014 |
$ |
150,143 |
5.2% |
$ |
119,857 |
$ |
105,428 |
13.7% |
|
|
Avg. Price |
$ |
636,950 |
$ |
736,250 |
(13.5)% |
$ |
714,995 |
$ |
620,426 |
15.2% |
$ |
644,392 |
$ |
817,271 |
(21.2)% |
|
West (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unconsolidated Joint Ventures) |
Home |
|
72 |
|
73 |
(1.4)% |
|
68 |
|
101 |
(32.7)% |
|
26 |
|
10 |
160.0% |
|
(AZ, CA, TX) |
Dollars |
$ |
39,729 |
$ |
38,198 |
4.0% |
$ |
36,574 |
$ |
49,903 |
(26.7)% |
$ |
14,221 |
$ |
5,345 |
166.1% |
|
|
Avg. Price |
$ |
551,792 |
$ |
523,260 |
5.5% |
$ |
537,853 |
$ |
494,089 |
8.9% |
$ |
546,962 |
$ |
534,500 |
2.3% |
|
Unconsolidated Joint Ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Excluding KSA JV) (2) (3) (4) |
Home |
|
525 |
|
488 |
7.6% |
|
595 |
|
552 |
7.8% |
|
372 |
|
311 |
19.6% |
|
|
Dollars |
$ |
357,456 |
$ |
337,775 |
5.8% |
$ |
424,335 |
$ |
343,617 |
23.5% |
$ |
255,639 |
$ |
235,777 |
8.4% |
|
|
Avg. Price |
$ |
680,869 |
$ |
692,162 |
(1.6)% |
$ |
713,168 |
$ |
622,495 |
14.6% |
$ |
687,202 |
$ |
758,125 |
(9.4)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
13 |
|
300 |
(95.7)% |
|
2,176 |
|
0 |
0.0% |
|
50 |
|
2,213 |
(97.7)% |
|
|
Dollars |
$ |
2,022 |
$ |
47,036 |
(95.7)% |
$ |
341,318 |
$ |
0 |
0.0% |
$ |
8,124 |
$ |
347,420 |
(97.7)% |
|
|
Avg. Price |
$ |
155,538 |
$ |
156,787 |
(0.8)% |
$ |
156,856 |
$ |
0 |
0.0% |
$ |
162,480 |
$ |
156,991 |
3.5% |
| |
|
DELIVERIES INCLUDE EXTRAS |
| Notes: |
| (1) Contracts are
defined as new contracts signed during the period for the purchase
of homes, less cancellations of prior contracts. |
| (2) Reflects the
reclassification of 38 homes and $32.3 million of contract backlog
as of April 30, 2023 from the unconsolidated joint ventures to the
consolidated Northeast segment. This is related to the assets and
liabilities acquired from a joint venture the company closed out
during the three months ended April 30, 2023. |
| (3) Reflects the
reclassification of 90 homes and $73.7 million, 59 homes and $33.0
million, and 12 homes and $5.7 million of contract backlog from the
consolidated Northeast, Southeast and West segments, respectively,
to unconsolidated joint ventures as of July 31, 2023. This is
related to the assets and liabilities contributed to a joint
venture by the company during the three months ended July 31,
2023. |
| (4) 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: |
Brad G. O’Connor |
Jeffrey T. O’Keefe |
|
|
Chief Financial Officer & Treasurer |
Vice President, Investor Relations |
|
|
732-747-7800 |
732-747-7800 |
|
|
|
|
Hovnanian Enterprises (NYSE:HOV)
Historical Stock Chart
From Mar 2024 to Apr 2024
Hovnanian Enterprises (NYSE:HOV)
Historical Stock Chart
From Apr 2023 to Apr 2024
