Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national
homebuilder, reported results for its fiscal second quarter and
six-month period ended April 30, 2019.
“For the second quarter of fiscal 2019, we
achieved an 11% year-over-year growth in consolidated community
count and a 10% year-over-year increase in consolidated contracts,”
stated Ara K. Hovnanian, Chairman of the Board, President and Chief
Executive Officer. "Furthermore, for the month of May 2019, we had
a 20% year-over-year increase in consolidated contracts."
“During the second quarter of fiscal 2019,
driven entirely by increasing our lot option position, we also grew
our consolidated land position by 17% year over year. Increasing
our land position and community count should ultimately lead to
rising revenues and substantially improved levels of profitability.
We believe that controlling the majority of our consolidated lots
through options – 60% at the end of the second quarter – gives us
considerable flexibility, mitigates risk and is consistent with our
strategy of achieving high inventory turns. We ended the quarter
with our liquidity position above our stated goal and remain
cautious and disciplined in our approach to underwriting new land
purchases. We continue to invest in a housing market that appears
to remain on solid economic and demographic footings. Assuming no
adverse changes in current market conditions and excluding land
related charges, gains or losses on extinguishment of debt and
other non-recurring items, we expect the second half of the year to
substantially outperform the first half, resulting in profitability
for the full year,” concluded Mr. Hovnanian.
RESULTS FOR THE THREE-MONTH AND
SIX-MONTH PERIODS ENDED APRIL 30, 2019:
- Total revenues decreased to $440.7
million in the second quarter of fiscal 2019, compared with $502.5
million in the second quarter of fiscal 2018. For the six months
ended April 30, 2019, total revenues decreased to $821.3 million
compared with $919.7 million in the same period during the prior
fiscal year.
- Homebuilding revenues for
unconsolidated joint ventures increased 29.7% to $125.7 million for
the second quarter ended April 30, 2019, compared with $96.9
million in last year’s second quarter. During the first half of
fiscal 2019, homebuilding revenues for unconsolidated joint
ventures increased to $221.5 million compared with $155.5 million
in the same period during the previous year.
- Homebuilding gross margin
percentage, after cost of sales interest expense and land charges,
was 13.3% for the second quarter of fiscal 2019 compared with 13.8%
during the prior year’s second quarter. For the six months ended
April 30, 2019, homebuilding gross margin percentage, after cost of
sales interest expense and land charges, was 14.0% compared with
14.3% last year.
- Homebuilding gross margin
percentage, before cost of sales interest expense and land charges,
was 16.9% for the second quarter of fiscal 2019 compared with 17.7%
in the same quarter one year ago. During the first half of fiscal
2019, homebuilding gross margin percentage, before cost of sales
interest expense and land charges, was 17.3% compared with 17.8% in
the same period of the previous fiscal year.
- For the second quarter of 2019,
total SG&A decreased by $1.3 million, or 2.2%, year over year.
Total SG&A was $60.3 million, or 13.7% of total revenues, in
the second quarter of fiscal 2019 compared with $61.7 million, or
12.3% of total revenues, in the second quarter of fiscal 2018. For
the six-month period ended April 30, 2019, total SG&A decreased
by $3.3 million, or 2.7%, year over year. For the first six months
of fiscal 2019, total SG&A was $120.7 million, or 14.7% of
total revenues, compared with $124.1 million, or 13.5% of total
revenues, in the same period of the prior fiscal year.
- Total interest expense was $36.6
million in the second quarter of fiscal 2019 compared with $45.5
million in the second quarter of fiscal 2018. Total interest
expense was $69.1 million for the first half of fiscal 2019
compared with $86.9 million for the same period in fiscal
2018.
- Interest incurred (some of which
was expensed and some of which was capitalized) was $41.4 million
for the second quarter of fiscal 2019 compared with $40.0 million
in the same quarter one year ago. For the six months ended April
30, 2019, interest incurred (some of which was expensed and some of
which was capitalized) was $80.2 million compared with $81.2
million last year.
- Income from unconsolidated joint
ventures was $7.3 million for the quarter ended April 30, 2019
compared with $1.3 million in the second quarter of the previous
year. For the first half of fiscal 2019, income from unconsolidated
joint ventures was $16.8 million compared with a loss of $3.8
million in the same period a year ago.
- Loss before income taxes for the
quarter ended April 30, 2019 was $14.9 million compared with a loss
of $9.6 million during the second quarter of fiscal 2018. For the
first six months of fiscal 2019, the loss before income taxes was
$32.0 million compared with a loss of $40.0 million during same
period of fiscal 2018.
- Loss before income taxes, excluding
land-related charges, joint venture write-downs and loss on
extinguishment of debt, was $13.5 million during the second quarter
of fiscal 2019 compared with a loss before these items of $5.5
million in the second quarter of fiscal 2018. For the six months
ended April 30, 2019, loss before income taxes, excluding
land-related charges, joint venture write-downs and loss on
extinguishment of debt, was $29.9 million compared with a loss
before these items of $34.9 million during the same period in
fiscal 2018.
- Net loss was $15.3 million, or
$2.56 per common share, in the second quarter of fiscal 2019
compared with a net loss of $9.8 million, or $1.65 per common
share, during the same quarter a year ago. For the first six months
of fiscal 2019, net loss was $32.7 million, or $5.49 per common
share, compared with a net loss of $40.6 million, or $6.85 per
common share, in the same period during fiscal 2018.
- Consolidated contracts per
community decreased 0.9% to 10.5 contracts per community for the
second quarter of fiscal 2019 compared with 10.6 contracts per
community in the second quarter of fiscal 2018. Contracts per
community, including unconsolidated joint ventures, decreased 3.6%
to 10.8 contracts per community for the quarter ended April 30,
2019 compared with 11.2 contracts per community, including
unconsolidated joint ventures, in last year’s second
quarter.
- The consolidated community count
was 147 as of April 30, 2019. This was an 11.4% year-over-year
increase from 132 communities at the end of the prior year’s second
quarter and a 7.3% sequential increase compared with 137
communities at January 31, 2019. As of the end of the second
quarter of fiscal 2019, community count, including unconsolidated
joint ventures, was 165 communities. This was a 7.8% increase, both
sequentially and year over year, compared with 153 communities at
both January 31, 2019 and April 30, 2018.
- The number of consolidated
contracts increased 10.1% to 1,546 homes, during the second quarter
of fiscal 2019, compared with 1,404 homes during the second quarter
of fiscal 2018. The number of contracts, including unconsolidated
joint ventures, for the second quarter ended April 30, 2019,
increased 4.0% to 1,775 homes from 1,706 homes for the same quarter
last year.
- The number of consolidated
contracts increased 2.0% to 2,480 homes, during the six-month
period ended April 30, 2019, compared with 2,431 homes in the same
period of the previous fiscal year. During the first six months of
fiscal 2019, the number of contracts, including unconsolidated
joint ventures, was 2,843 homes, a decrease of 3.8% from 2,956
homes during the same period in fiscal 2018.
- For May 2019, consolidated
contracts per community were 3.7 compared with 3.6 for the same
month one year ago. During May 2019, the number of consolidated
contracts increased 20.2% to 536 homes from 446 homes in May 2018.
- The dollar value of consolidated
contract backlog, as of April 30, 2019, increased 5.5% to $949.9
million compared with $900.7 million as of April 30, 2018. The
dollar value of contract backlog, including unconsolidated joint
ventures, as of April 30, 2019, was $1.18 billion, a decrease of
11.9% compared with $1.34 billion as of April 30, 2018.
- Consolidated deliveries were 1,085
homes for the second quarter of fiscal 2019, a 10.7% decrease
compared with 1,215 homes during the same quarter a year ago. For
the quarter ended April 30, 2019, deliveries, including
unconsolidated joint ventures, decreased 10.0% to 1,280 homes
compared with 1,423 homes during the second quarter of fiscal
2018.
- Consolidated deliveries were 2,052
homes in the first half of fiscal 2019, an 8.4% decrease compared
with 2,240 homes in the same period in fiscal 2018. For the six
months ended April 30, 2019, deliveries, including unconsolidated
joint ventures, decreased 6.4% to 2,399 homes compared with 2,564
homes in the same period of the prior fiscal year.
- The contract cancellation rate for
both consolidated contracts and contracts including unconsolidated
joint ventures were 19% for the three months ended April 30, 2019
compared with 17% for the same quarter in fiscal 2018.
LIQUIDITY AND INVENTORY AS OF APRIL 30,
2019:
- Total liquidity at the end of the
of the second quarter of fiscal 2019 was $266.0 million, which is
above the upper end of our target range.
- In the second quarter of fiscal
2019, approximately 2,500 lots were put under option or acquired in
32 communities, including unconsolidated joint ventures.
- As of April 30, 2019, consolidated
lots controlled increased by 17.1% to 31,087 year over year from
26,537 lots at April 30, 2018. The consolidated lots under option
at the end of the second quarter of fiscal 2019 were 18,602 lots
compared with 13,949 optioned lots at the end of last year’s second
quarter. As of April 30, 2019, the Company owned 12,485 lots
compared with 12,588 owned lots at the end of the second quarter of
fiscal 2018.
WEBCAST INFORMATION:
Hovnanian Enterprises will webcast its fiscal
2019 second quarter financial results conference call at 11:00 a.m.
E.T. on Thursday, June 6, 2019. The webcast can be accessed live
through the “Investor Relations” section of Hovnanian Enterprises’
website at http://www.khov.com. For those who are not available to
listen to the live webcast, an archive of the broadcast will be
available under the “Past Events” section of the Investor Relations
page on the Hovnanian website at http://www.khov.com. The archive
will be available for 12 months.
ABOUT HOVNANIAN ENTERPRISES,
INC.:
Hovnanian Enterprises, Inc., founded in 1959 by
Kevork S. Hovnanian, is headquartered in Matawan, New Jersey and,
through its subsidiaries, is one of the nation’s largest
homebuilders with operations in Arizona, California, Delaware,
Florida, Georgia, Illinois, Maryland, New Jersey, Ohio,
Pennsylvania, South Carolina, Texas, Virginia, Washington, D.C. and
West Virginia. The Company’s homes are marketed and sold under the
trade names K. Hovnanian® Homes and Brighton Homes®.
Additionally, the Company’s subsidiaries, as developers of K.
Hovnanian’s® Four Seasons communities, make the Company one of
the nation’s largest builders of active lifestyle communities.
Additional information on Hovnanian Enterprises,
Inc. can be accessed through the “Investor Relations” section of
the Hovnanian Enterprises’ website at http://www.khov.com. To be
added to Hovnanian's investor e-mail list, please send an e-mail to
IR@khov.com or sign up at http://www.khov.com.
NON-GAAP FINANCIAL
MEASURES:
Consolidated earnings before interest
expense and income taxes (“EBIT”) and before depreciation and
amortization (“EBITDA”) and before inventory impairment loss and
land option write-offs and loss on extinguishment of debt
(“Adjusted EBITDA”) are not U.S. generally accepted accounting
principles (GAAP) financial measures. The most directly comparable
GAAP financial measure is net (loss). The reconciliation for
historical periods of EBIT, EBITDA and Adjusted EBITDA to net
(loss) is presented in a table attached to this earnings
release.
Homebuilding gross margin, before cost
of sales interest expense and land charges, and homebuilding gross
margin percentage, before cost of sales interest expense and land
charges, are non-GAAP financial measures. The most directly
comparable GAAP financial measures are homebuilding gross margin
and homebuilding gross margin percentage, respectively. The
reconciliation for historical periods of homebuilding gross margin,
before cost of sales interest expense and land charges, and
homebuilding gross margin percentage, before cost of sales interest
expense and land charges, to homebuilding gross margin and
homebuilding gross margin percentage, respectively, is presented in
a table attached to this earnings release.
(Loss) before income taxes excluding
land-related charges, joint venture write-downs and loss on
extinguishment of debt is a non-GAAP financial measure. The most
directly comparable GAAP financial measure is (loss) before income
taxes. The reconciliation for historical periods of (loss) before
income taxes excluding land-related charges, joint venture
write-downs and loss on extinguishment of debt to (loss) before
income taxes is presented in a table attached to this earnings
release.
Total liquidity is comprised of $124.0
million of cash and cash equivalents, $17.0 million of restricted
cash required to collateralize letters of credit and $125.0 million
of availability under the senior secured revolving credit facility
as of April 30, 2019.
FORWARD-LOOKING STATEMENTS
All statements in this press release
that are not historical facts should be considered as
“Forward-Looking Statements” within the meaning of the “Safe
Harbor” provisions of the Private Securities Litigation Reform Act
of 1995. Such statements involve known and unknown risks,
uncertainties and other factors that may cause actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such
forward-looking statements include but are not limited to
statements related to the Company’s goals and expectations with
respect to its financial results for future financial periods.
Although we believe that our plans, intentions and expectations
reflected in, or suggested by, such forward-looking statements are
reasonable, we can give no assurance that such plans, intentions or
expectations will be achieved. By their nature, forward-looking
statements: (i) speak only as of the date they are made, (ii) are
not guarantees of future performance or results and (iii) are
subject to risks, uncertainties and assumptions that are difficult
to predict or quantify. Therefore, actual results could differ
materially and adversely from those forward-looking statements as a
result of a variety of factors. Such risks, uncertainties and other
factors include, but are not limited to, (1) changes in general and
local economic, industry and business conditions and impacts of a
significant homebuilding downturn; (2) adverse weather and other
environmental conditions and natural disasters; (3) high leverage
and restrictions on the Company’s operations and activities imposed
by the agreements governing the Company’s outstanding indebtedness;
(4) availability and terms of financing to the Company; (5) the
Company’s sources of liquidity; (6) changes in credit ratings; (7)
the seasonality of the Company’s business; (8) the availability and
cost of suitable land and improved lots and sufficient liquidity to
invest in such land and lots; (9) shortages in, and price
fluctuations of, raw materials and labor; (10) reliance on, and the
performance of, subcontractors; (11) regional and local economic
factors, including dependency on certain sectors of the economy,
and employment levels affecting home prices and sales activity in
the markets where the Company builds homes; (12) fluctuations in
interest rates and the availability of mortgage financing; (13)
increases in cancellations of agreements of sale; (14) changes in
tax laws affecting the after-tax costs of owning a home; (15)
operations through unconsolidated joint ventures with third
parties; (16) government regulation, including regulations
concerning development of land, the home building, sales and
customer financing processes, tax laws and the environment; (17)
legal claims brought against us and not resolved in our favor, such
as product liability litigation, warranty claims and claims made by
mortgage investors; (18) levels of competition; (19) successful
identification and integration of acquisitions; (20) significant
influence of the Company’s controlling stockholders; (21)
availability of net operating loss carryforwards; (22) utility
shortages and outages or rate fluctuations; (23) 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; (24)
geopolitical risks, terrorist acts and other acts of war; (25) loss
of key management personnel or failure to attract qualified
personnel; (26) information technology failures and data security
breaches; (27) negative publicity; and (28) certain risks,
uncertainties and other factors described in detail in the
Company’s Annual Report on Form 10-K for the fiscal year ended
October 31, 2018 and subsequent filings with the Securities and
Exchange Commission. Except as otherwise required by applicable
securities laws, we undertake no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events, changed circumstances or any other
reason.
(Financial Tables Follow)
Hovnanian
Enterprises, Inc. |
April 30,
2019 |
Statements of
consolidated operations |
(In thousands,
except per share data) |
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
April 30, |
|
April 30, |
|
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
(Unaudited) |
Total
revenues |
$440,691 |
|
|
$502,544 |
|
|
$821,285 |
|
|
$919,710 |
|
Costs and expenses
(1) |
|
462,855 |
|
|
|
512,025 |
|
|
|
870,117 |
|
|
|
954,486 |
|
Loss on
extinguishment of debt |
|
- |
|
|
|
(1,440 |
) |
|
|
- |
|
|
|
(1,440 |
) |
Income (loss) from
unconsolidated joint ventures |
|
7,252 |
|
|
|
1,343 |
|
|
|
16,814 |
|
|
|
(3,833 |
) |
(Loss) before
income taxes |
|
(14,912 |
) |
|
|
(9,578 |
) |
|
|
(32,018 |
) |
|
|
(40,049 |
) |
Income tax
provision |
|
345 |
|
|
|
245 |
|
|
|
691 |
|
|
|
583 |
|
Net (loss) |
$(15,257 |
) |
|
$(9,823 |
) |
|
$(32,709 |
) |
|
$(40,632 |
) |
|
|
|
|
|
|
|
|
|
|
|
Per share
data: |
|
|
|
|
|
|
|
Basic and assuming
dilution: |
|
|
|
|
|
|
|
|
Net (loss) per
common share |
$(2.56 |
) |
|
$(1.65 |
) |
|
$(5.49 |
) |
|
$(6.85 |
) |
|
Weighted average
number of |
|
|
|
|
|
|
|
|
|
common shares
outstanding (2) |
|
5,962 |
|
|
|
5,937 |
|
|
|
5,960 |
|
|
|
5,929 |
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes inventory impairment loss and land option write-offs. |
(2) For
periods with a net (loss), basic shares are used in accordance with
GAAP rules. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hovnanian
Enterprises, Inc. |
April 30,
2019 |
Reconciliation of
(loss) before income taxes excluding land-related charges, joint
venture write-downs and loss on extinguishment of debt to (loss)
before income taxes |
|
|
|
|
|
|
|
|
|
|
|
(In
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
April 30, |
|
April 30, |
|
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
(Unaudited) |
(Loss) before
income taxes |
$(14,912 |
) |
|
$(9,578 |
) |
|
$(32,018 |
) |
|
$(40,049 |
) |
Inventory
impairment loss and land option write-offs |
|
1,462 |
|
|
|
2,673 |
|
|
|
2,166 |
|
|
|
3,087 |
|
Unconsolidated
joint venture write-downs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
660 |
|
Loss on
extinguishment of debt |
|
- |
|
|
|
1,440 |
|
|
|
- |
|
|
|
1,440 |
|
(Loss) before
income taxes excluding land-related charges, joint venture
write-downs and loss on extinguishment of debt (1) |
$(13,450 |
) |
|
$(5,465 |
) |
|
$(29,852 |
) |
|
$(34,862 |
) |
|
|
|
|
|
|
|
|
|
|
|
(1) (Loss)
before income taxes excluding land-related charges, joint venture
write-downs and loss on extinguishment of debt is a non-GAAP
financial measure. The most directly comparable GAAP financial
measure is (loss) before income taxes. |
Hovnanian
Enterprises, Inc. |
April 30,
2019 |
Gross margin |
(In
thousands) |
|
Homebuilding GrossMargin |
|
Homebuilding GrossMargin |
|
Three Months Ended |
|
Six Months Ended |
|
April 30, |
|
April 30, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Sale of homes |
$427,552 |
|
|
$468,117 |
|
|
$789,687 |
|
|
$869,694 |
|
Cost of sales, excluding
interest expense and land charges (1) |
|
355,477 |
|
|
|
385,302 |
|
|
|
653,047 |
|
|
|
714,829 |
|
Homebuilding gross margin,
before cost of sales interest expense and land charges
(2) |
|
72,075 |
|
|
|
82,815 |
|
|
|
136,640 |
|
|
|
154,865 |
|
Cost of sales interest
expense, excluding land sales interest expense |
|
13,898 |
|
|
|
15,309 |
|
|
|
24,140 |
|
|
|
27,601 |
|
Homebuilding gross margin,
after cost of sales interest expense, before land
charges (2) |
|
58,177 |
|
|
|
67,506 |
|
|
|
112,500 |
|
|
|
127,264 |
|
Land charges |
|
1,462 |
|
|
|
2,673 |
|
|
|
2,166 |
|
|
|
3,087 |
|
Homebuilding gross margin |
$56,715 |
|
|
$64,833 |
|
|
$110,334 |
|
|
$124,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin percentage |
|
13.3 |
% |
|
|
13.8 |
% |
|
|
14.0 |
% |
|
|
14.3 |
% |
Gross margin percentage,
before cost of sales interest expense and land charges
(2) |
|
16.9 |
% |
|
|
17.7 |
% |
|
|
17.3 |
% |
|
|
17.8 |
% |
Gross margin percentage, after
cost of sales interest expense, before land charges
(2) |
|
13.6 |
% |
|
|
14.4 |
% |
|
|
14.2 |
% |
|
|
14.6 |
% |
|
|
|
|
|
|
|
|
|
Land Sales GrossMargin |
|
Land Sales GrossMargin |
|
Three Months Ended |
|
Six Months Ended |
|
April 30, |
|
April 30, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Land and lot sales |
|
$- |
|
|
$20,505 |
|
|
$7,508 |
|
|
$20,505 |
|
Cost of sales, excluding
interest and land charges (1) |
|
- |
|
|
|
7,710 |
|
|
|
7,357 |
|
|
|
7,710 |
|
Land and lot sales gross
margin, excluding interest and land charges |
|
- |
|
|
|
12,795 |
|
|
|
151 |
|
|
|
12,795 |
|
Land and lot sales
interest |
|
- |
|
|
|
4,055 |
|
|
|
- |
|
|
|
4,055 |
|
Land and lot sales gross
margin, including interest and excluding land
charges |
|
$- |
|
|
$8,740 |
|
|
$151 |
|
|
$8,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Does not
include cost associated with walking away from land options or
inventory impairment losses which are recorded as Inventory
impairment loss and land option write-offs in the Condensed
Consolidated Statements of Operations. |
(2) Homebuilding
gross margin, before cost of sales interest expense and land
charges, and homebuilding gross margin percentage, before cost of
sales interest expense and land charges, are non-GAAP financial
measures. The most directly comparable GAAP financial measures are
homebuilding gross margin and homebuilding gross margin percentage,
respectively. |
Hovnanian
Enterprises, Inc. |
April 30,
2019 |
Reconciliation of
adjusted EBITDA to net (loss) |
(In
thousands) |
|
Three Months Ended |
|
Six Months Ended |
|
April 30, |
|
April 30, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Net (loss) |
$(15,257 |
) |
|
$(9,823 |
) |
|
$(32,709 |
) |
|
$(40,632 |
) |
Income tax provision |
|
345 |
|
|
|
245 |
|
|
|
691 |
|
|
|
583 |
|
Interest expense |
|
36,561 |
|
|
|
45,452 |
|
|
|
69,076 |
|
|
|
86,875 |
|
EBIT (1) |
|
21,649 |
|
|
|
35,874 |
|
|
|
37,058 |
|
|
|
46,826 |
|
Depreciation and
amortization |
|
959 |
|
|
|
719 |
|
|
|
1,938 |
|
|
|
1,509 |
|
EBITDA (2) |
|
22,608 |
|
|
|
36,593 |
|
|
|
38,996 |
|
|
|
48,335 |
|
Inventory impairment loss and
land option write-offs |
|
1,462 |
|
|
|
2,673 |
|
|
|
2,166 |
|
|
|
3,087 |
|
Loss on extinguishment of
debt |
|
- |
|
|
|
1,440 |
|
|
|
- |
|
|
|
1,440 |
|
Adjusted EBITDA (3) |
$24,070 |
|
|
$40,706 |
|
|
$41,162 |
|
|
$52,862 |
|
|
|
|
|
|
|
|
|
Interest incurred |
$41,383 |
|
|
$40,014 |
|
|
$80,236 |
|
|
$81,179 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA to interest
incurred |
|
0.58 |
|
|
|
1.02 |
|
|
|
0.51 |
|
|
|
0.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) EBIT is
a non-GAAP financial measure. The most directly comparable GAAP
financial measure is net (loss). EBIT represents earnings before
interest expense and income taxes. |
(2) EBITDA
is a non-GAAP financial measure. The most directly comparable GAAP
financial measure is net (loss). EBITDA represents earnings before
interest expense, income taxes, depreciation and amortization. |
(3)
Adjusted EBITDA is a non-GAAP financial measure. The most directly
comparable GAAP financial measure is net (loss). Adjusted EBITDA
represents earnings before interest expense, income taxes,
depreciation, amortization, inventory impairment loss and land
option write-offs and loss on extinguishment of debt. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hovnanian
Enterprises, Inc. |
April 30,
2019 |
Interest
incurred, expensed and capitalized |
(In
thousands) |
|
Three Months Ended |
|
Six Months Ended |
|
April 30, |
|
April 30, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Interest capitalized at
beginning of period |
$74,455 |
|
|
$70,793 |
|
|
$68,117 |
|
|
$71,051 |
|
Plus interest incurred |
|
41,383 |
|
|
|
40,014 |
|
|
|
80,236 |
|
|
|
81,179 |
|
Less interest expensed |
|
36,561 |
|
|
|
45,452 |
|
|
|
69,076 |
|
|
|
86,875 |
|
Interest capitalized at end of
period (1) |
$79,277 |
|
|
$65,355 |
|
|
$79,277 |
|
|
$65,355 |
|
|
|
|
|
|
|
|
|
(1) Capitalized
interest amounts are shown gross before allocating any portion of
impairments to capitalized interest. |
HOVNANIAN ENTERPRISES, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In Thousands)
|
April 30,2019 |
|
October 31,2018 |
|
(Unaudited) |
|
|
(1) |
|
ASSETS |
|
|
|
|
Homebuilding: |
|
|
|
|
Cash and cash equivalents |
$123,998 |
|
|
$187,871 |
|
Restricted cash and cash equivalents |
|
17,223 |
|
|
12,808 |
|
Inventories: |
|
|
|
|
Sold and unsold homes and lots under development |
|
993,477 |
|
|
878,876 |
|
Land and land options held for future development or sale |
|
120,146 |
|
|
111,368 |
|
Consolidated inventory not owned |
|
154,435 |
|
|
87,921 |
|
Total inventories |
|
1,268,058 |
|
|
1,078,165 |
|
Investments in and advances to unconsolidated joint ventures |
|
135,562 |
|
|
123,694 |
|
Receivables, deposits and notes, net |
|
29,154 |
|
|
35,189 |
|
Property, plant and equipment, net |
|
20,307 |
|
|
20,285 |
|
Prepaid expenses and other assets |
|
41,058 |
|
|
39,150 |
|
Total homebuilding |
|
1,635,360 |
|
|
1,497,162 |
|
|
|
|
|
|
Financial services |
|
119,912 |
|
|
164,880 |
|
Total assets |
$1,755,272 |
|
|
$1,662,042 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
Homebuilding: |
|
|
|
|
Nonrecourse mortgages secured by inventory, net of debt issuance
costs |
$190,655 |
|
|
$95,557 |
|
Accounts payable and other liabilities |
|
285,293 |
|
|
304,899 |
|
Customers’ deposits |
|
37,953 |
|
|
30,086 |
|
Liabilities from inventory not owned, net of debt issuance
costs |
|
123,348 |
|
|
63,387 |
|
Revolving and term loan credit facilities, net of debt issuance
costs |
|
201,459 |
|
|
201,389 |
|
Notes payable (net of discount, premium and debt issuance costs)
and accrued interest |
|
1,298,899 |
|
|
1,273,446 |
|
Total homebuilding |
|
2,137,607 |
|
|
1,968,764 |
|
|
|
|
|
|
Financial services |
|
100,054 |
|
|
143,448 |
|
Income taxes payable |
|
2,090 |
|
|
3,334 |
|
Total liabilities |
|
2,239,751 |
|
|
2,115,546 |
|
|
|
|
|
|
Equity: |
|
|
|
|
Hovnanian Enterprises, Inc.
stockholders’ equity deficit: |
|
|
|
|
Preferred stock, $0.01 par value - authorized 100,000 shares;
issued and outstanding 5,600shares with a liquidation preference of
$140,000 at April 30, 2019 and at October 31, 2018 |
|
135,299 |
|
|
135,299 |
|
Common stock, Class A, $0.01 par value – authorized 16,000,0000
shares; issued 5,786,826shares at April 30, 2019 and 5,783,858
shares at October 31, 2018 |
|
58 |
|
|
58 |
|
Common stock, Class B, $0.01 par value (convertible to Class A at
time of sale) –authorized 2,400,000 shares; issued 650,457 shares
at April 30, 2019 and 649,673 shares atOctober 31, 2018 |
|
6 |
|
|
6 |
|
Paid in capital – common stock |
|
711,517 |
|
|
710,349 |
|
Accumulated deficit |
|
(1,216,565 |
) |
|
(1,183,856 |
) |
Treasury stock – at cost – 470,430 shares of Class A common stock
and 27,669 shares ofClass B common stock at April 30, 2019 and
October 31, 2018 |
|
(115,360 |
) |
|
(115,360 |
) |
Total Hovnanian Enterprises, Inc. stockholders’ equity deficit |
|
(485,045 |
) |
|
(453,504 |
) |
Noncontrolling interest in
consolidated joint ventures |
|
566 |
|
|
- |
|
Total equity deficit |
|
(484,479 |
) |
|
(453,504 |
) |
Total liabilities and
equity |
$1,755,272 |
|
|
$1,662,042 |
|
(1) Derived from the audited balance sheet as of
October 31, 2018
HOVNANIAN ENTERPRISES, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In
Thousands Except Per Share Data)(Unaudited)
|
|
Three Months Ended April 30, |
|
|
Six Months Ended April 30, |
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale of homes |
|
|
$427,552 |
|
|
|
$468,117 |
|
|
|
$789,687 |
|
|
|
$869,694 |
|
Land sales and other revenues |
|
|
832 |
|
|
|
21,373 |
|
|
|
9,683 |
|
|
|
26,074 |
|
Total homebuilding |
|
|
428,384 |
|
|
|
489,490 |
|
|
|
799,370 |
|
|
|
895,768 |
|
Financial services |
|
|
12,307 |
|
|
|
13,054 |
|
|
|
21,915 |
|
|
|
23,942 |
|
Total revenues |
|
|
440,691 |
|
|
|
502,544 |
|
|
|
821,285 |
|
|
|
919,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales, excluding interest |
|
|
355,477 |
|
|
|
393,012 |
|
|
|
660,404 |
|
|
|
722,539 |
|
Cost of sales interest |
|
|
13,898 |
|
|
|
19,364 |
|
|
|
24,140 |
|
|
|
31,656 |
|
Inventory impairment loss and land option write-offs |
|
|
1,462 |
|
|
|
2,673 |
|
|
|
2,166 |
|
|
|
3,087 |
|
Total cost of sales |
|
|
370,837 |
|
|
|
415,049 |
|
|
|
686,710 |
|
|
|
757,282 |
|
Selling, general and administrative |
|
|
44,179 |
|
|
|
45,544 |
|
|
|
86,915 |
|
|
|
88,775 |
|
Total homebuilding expenses |
|
|
415,016 |
|
|
|
460,593 |
|
|
|
773,625 |
|
|
|
846,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial services |
|
|
8,678 |
|
|
|
8,798 |
|
|
|
17,152 |
|
|
|
17,139 |
|
Corporate general and administrative |
|
|
16,169 |
|
|
|
16,144 |
|
|
|
33,833 |
|
|
|
35,279 |
|
Other interest |
|
|
22,663 |
|
|
|
26,088 |
|
|
|
44,936 |
|
|
|
55,219 |
|
Other operations |
|
|
329 |
|
|
|
402 |
|
|
|
571 |
|
|
|
792 |
|
Total expenses |
|
|
462,855 |
|
|
|
512,025 |
|
|
|
870,117 |
|
|
|
954,486 |
|
Loss on extinguishment of
debt |
|
|
- |
|
|
|
(1,440 |
) |
|
|
- |
|
|
|
(1,440 |
) |
Income (loss) from
unconsolidated joint ventures |
|
|
7,252 |
|
|
|
1,343 |
|
|
|
16,814 |
|
|
|
(3,833 |
) |
Loss before income taxes |
|
|
(14,912 |
) |
|
|
(9,578 |
) |
|
|
(32,018 |
) |
|
|
(40,049 |
) |
State and federal income tax
provision: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State |
|
|
345 |
|
|
|
245 |
|
|
|
691 |
|
|
|
583 |
|
Federal |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total income taxes |
|
|
345 |
|
|
|
245 |
|
|
|
691 |
|
|
|
583 |
|
Net (loss) |
|
|
$(15,257 |
) |
|
|
$(9,823 |
) |
|
|
$(32,709 |
) |
|
|
$(40,632 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and assuming
dilution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) per common share |
|
|
$(2.56 |
) |
|
|
$(1.65 |
) |
|
|
$(5.49 |
) |
|
|
$(6.85 |
) |
Weighted-average number of common shares outstanding |
|
|
5,962 |
|
|
|
5,937 |
|
|
|
5,960 |
|
|
|
5,929 |
|
HOVNANIAN
ENTERPRISES, INC. |
(DOLLARS
IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT
DATA EXCLUDES UNCONSOLIDATED JOINT VENTURES) |
(UNAUDITED) |
|
|
|
|
|
Three Months - April 30, 2019 |
|
|
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Three Months Ended |
Three Months Ended |
Backlog |
|
|
April 30, |
April 30, |
April 30, |
|
|
|
2019 |
|
2018 |
% Change |
|
2019 |
|
2018 |
% Change |
|
2019 |
|
2018 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(NJ, PA) |
Home |
|
104 |
|
26 |
300.0 |
% |
|
23 |
|
47 |
(51.1 |
)% |
|
162 |
|
83 |
95.2 |
% |
|
Dollars |
$62,580 |
$15,278 |
309.6 |
% |
$13,040 |
$23,513 |
(44.5 |
)% |
$102,481 |
$48,715 |
110.4 |
% |
|
Avg.
Price |
$601,731 |
$587,615 |
2.4 |
% |
$566,957 |
$500,277 |
13.3 |
% |
$632,599 |
$586,928 |
7.8 |
% |
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(DE, MD, VA, WV) |
Home |
|
199 |
|
212 |
(6.1 |
)% |
|
142 |
|
206 |
(31.1 |
)% |
|
393 |
|
324 |
21.3 |
% |
|
Dollars |
$118,245 |
$117,399 |
0.7 |
% |
$80,818 |
$104,058 |
(22.3 |
)% |
$246,307 |
$199,279 |
23.6 |
% |
|
Avg.
Price |
$594,196 |
$553,766 |
7.3 |
% |
$569,141 |
$505,139 |
12.7 |
% |
$626,735 |
$615,059 |
1.9 |
% |
Midwest |
|
|
|
|
|
|
|
|
|
|
(IL, OH) |
Home |
|
235 |
|
220 |
6.8 |
% |
|
141 |
|
143 |
(1.4 |
)% |
|
466 |
|
484 |
(3.7 |
)% |
|
Dollars |
$68,744 |
$67,308 |
2.1 |
% |
$42,870 |
$42,816 |
0.1 |
% |
$125,181 |
$132,360 |
(5.4 |
)% |
|
Avg.
Price |
$292,528 |
$305,943 |
(4.4 |
)% |
$304,035 |
$299,415 |
1.5 |
% |
$268,629 |
$273,472 |
(1.8 |
)% |
Southeast |
|
|
|
|
|
|
|
|
|
|
(FL, GA, SC) |
Home |
|
155 |
|
154 |
0.6 |
% |
|
123 |
|
158 |
(22.2 |
)% |
|
270 |
|
276 |
(2.2 |
)% |
|
Dollars |
$64,772 |
$62,741 |
3.2 |
% |
$49,346 |
$60,974 |
(19.1 |
)% |
$120,140 |
$115,930 |
3.6 |
% |
|
Avg.
Price |
$417,884 |
$407,404 |
2.6 |
% |
$401,187 |
$385,908 |
4.0 |
% |
$444,963 |
$420,037 |
5.9 |
% |
Southwest |
|
|
|
|
|
|
|
|
|
|
(AZ, TX) |
Home |
|
559 |
|
587 |
(4.8 |
)% |
|
431 |
|
466 |
(7.5 |
)% |
|
648 |
|
657 |
(1.4 |
)% |
|
Dollars |
$192,630 |
$198,487 |
(3.0 |
)% |
$143,634 |
$158,958 |
(9.6 |
)% |
$227,325 |
$230,600 |
(1.4 |
)% |
|
Avg.
Price |
$344,597 |
$338,137 |
1.9 |
% |
$333,258 |
$341,112 |
(2.3 |
)% |
$350,810 |
$350,989 |
(0.1 |
)% |
West |
|
|
|
|
|
|
|
|
|
|
(CA) |
Home |
|
294 |
|
205 |
43.4 |
% |
|
225 |
|
195 |
15.4 |
% |
|
315 |
|
369 |
(14.6 |
)% |
|
Dollars |
$120,616 |
$93,213 |
29.4 |
% |
$97,844 |
$77,798 |
25.8 |
% |
$128,422 |
$173,794 |
(26.1 |
)% |
|
Avg.
Price |
$410,259 |
$454,697 |
(9.8 |
)% |
$434,862 |
$398,962 |
9.0 |
% |
$407,689 |
$470,986 |
(13.4 |
)% |
Consolidated |
|
|
|
|
|
|
|
|
|
|
Total |
Home |
|
1,546 |
|
1,404 |
10.1 |
% |
|
1,085 |
|
1,215 |
(10.7 |
)% |
|
2,254 |
|
2,193 |
2.8 |
% |
|
Dollars |
$627,587 |
$554,426 |
13.2 |
% |
$427,552 |
$468,117 |
(8.7 |
)% |
$949,856 |
$900,678 |
5.5 |
% |
|
Avg.
Price |
$405,942 |
$394,889 |
2.8 |
% |
$394,057 |
$385,281 |
2.3 |
% |
$421,409 |
$410,706 |
2.6 |
% |
Unconsolidated |
|
|
|
|
|
|
|
|
|
|
Joint Ventures (2) |
Home |
|
229 |
|
302 |
(24.2 |
)% |
|
195 |
|
208 |
(6.3 |
)% |
|
382 |
|
636 |
(39.9 |
)% |
|
Dollars |
$131,282 |
$178,973 |
(26.6 |
)% |
$124,776 |
$96,296 |
29.6 |
% |
|
228,730 |
$436,715 |
(47.6 |
)% |
|
Avg.
Price |
$573,284 |
$592,630 |
(3.3 |
)% |
$639,877 |
$462,964 |
38.2 |
% |
$598,770 |
$686,659 |
(12.8 |
)% |
Grand |
|
|
|
|
|
|
|
|
|
|
Total |
Home |
|
1,775 |
|
1,706 |
4.0 |
% |
|
1,280 |
|
1,423 |
(10.0 |
)% |
|
2,636 |
|
2,829 |
(6.8 |
)% |
|
Dollars |
$758,869 |
$733,399 |
3.5 |
% |
$552,328 |
$564,413 |
(2.1 |
)% |
$1,178,586 |
$1,337,393 |
(11.9 |
)% |
|
Avg.
Price |
$427,532 |
$429,894 |
(0.5 |
)% |
$431,505 |
$396,636 |
8.8 |
% |
$447,112 |
$472,744 |
(5.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
DELIVERIES INCLUDE EXTRAS |
Notes: |
(1) Contracts are
defined as new contracts signed during the period for the purchase
of homes, less cancellations of prior contracts.(2) Represents home
deliveries, home revenues and average prices for our unconsolidated
homebuilding joint ventures for the period. We provide this data as
a supplement to our consolidated results as an indicator of the
volume managed in our unconsolidated homebuilding joint ventures.
Our proportionate share of the income or loss of unconsolidated
homebuilding and land development joint ventures is reflected as a
separate line item in our consolidated financial statements under
“Income (loss) from unconsolidated joint ventures”. |
HOVNANIAN
ENTERPRISES, INC. |
(DOLLARS
IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT
DATA EXCLUDES UNCONSOLIDATED JOINT VENTURES) |
(UNAUDITED) |
|
|
|
|
|
Six Months - April 30, 2019 |
|
|
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Six Months Ended |
Six Months Ending |
Backlog |
|
|
April 30, |
April 30, |
April 30, |
|
|
|
2019 |
|
2018 |
% Change |
|
2019 |
|
2018 |
% Change |
|
2019 |
|
2018 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(NJ, PA) |
Home |
|
156 |
|
72 |
116.7 |
% |
|
45 |
|
87 |
(48.3 |
)% |
|
162 |
|
83 |
95.2 |
% |
|
Dollars |
$97,530 |
$40,641 |
140.0 |
% |
$25,545 |
$43,705 |
(41.6 |
)% |
$102,481 |
$48,715 |
110.4 |
% |
|
Avg.
Price |
$625,192 |
$564,459 |
10.8 |
% |
$567,667 |
$502,354 |
13.0 |
% |
$632,599 |
$586,928 |
7.8 |
% |
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(DE, MD, VA, WV) |
Home |
|
350 |
|
337 |
3.9 |
% |
|
253 |
|
341 |
(25.8 |
)% |
|
393 |
|
324 |
21.3 |
% |
|
Dollars |
$199,759 |
$180,612 |
10.6 |
% |
$133,997 |
$175,067 |
(23.5 |
)% |
$246,307 |
$199,279 |
23.6 |
% |
|
Avg.
Price |
$570,740 |
$535,939 |
6.5 |
% |
$529,632 |
$513,393 |
3.2 |
% |
$626,735 |
$615,059 |
1.9 |
% |
Midwest |
|
|
|
|
|
|
|
|
|
|
(IL, OH) |
Home |
|
362 |
|
385 |
(6.0 |
)% |
|
290 |
|
283 |
2.5 |
% |
|
466 |
|
484 |
(3.7 |
)% |
|
Dollars |
$105,790 |
$116,724 |
(9.4 |
)% |
$87,759 |
$83,333 |
5.3 |
% |
$125,181 |
$132,360 |
(5.4 |
)% |
|
Avg.
Price |
$292,238 |
$303,179 |
(3.6 |
)% |
$302,617 |
$294,463 |
2.8 |
% |
$268,629 |
$273,472 |
(1.8 |
)% |
Southeast |
|
|
|
|
|
|
|
|
|
|
(FL, GA, SC) |
Home |
|
250 |
|
281 |
(11.0 |
)% |
|
231 |
|
290 |
(20.3 |
)% |
|
270 |
|
276 |
(2.2 |
)% |
|
Dollars |
$105,232 |
$113,196 |
(7.0 |
)% |
$93,229 |
$117,648 |
(20.8 |
)% |
$120,140 |
$115,930 |
3.6 |
% |
|
Avg.
Price |
$420,928 |
$402,831 |
4.5 |
% |
$403,589 |
$405,682 |
(0.5 |
)% |
$444,963 |
$420,037 |
5.9 |
% |
Southwest |
|
|
|
|
|
|
|
|
|
|
(AZ, TX) |
Home |
|
921 |
|
998 |
(7.7 |
)% |
|
796 |
|
850 |
(6.4 |
)% |
|
648 |
|
657 |
(1.4 |
)% |
|
Dollars |
$307,968 |
$339,945 |
(9.4 |
)% |
$261,497 |
$287,162 |
(8.9 |
)% |
$227,325 |
$230,600 |
(1.4 |
)% |
|
Avg.
Price |
$334,384 |
$340,626 |
(1.8 |
)% |
$328,514 |
$337,838 |
(2.8 |
)% |
$350,810 |
$350,989 |
(0.1 |
)% |
West |
|
|
|
|
|
|
|
|
|
|
(CA) |
Home |
|
441 |
|
358 |
23.2 |
% |
|
437 |
|
389 |
12.3 |
% |
|
315 |
|
369 |
(14.6 |
)% |
|
Dollars |
$177,634 |
$162,610 |
9.2 |
% |
$187,660 |
$162,779 |
15.3 |
% |
$128,422 |
$173,794 |
(26.1 |
)% |
|
Avg.
Price |
$402,798 |
$454,218 |
(11.3 |
)% |
$429,428 |
$418,454 |
2.6 |
% |
$407,689 |
$470,986 |
(13.4 |
)% |
Consolidated |
|
|
|
|
|
|
|
|
|
|
Total |
Home |
|
2,480 |
|
2,431 |
2.0 |
% |
|
2,052 |
|
2,240 |
(8.4 |
)% |
|
2,254 |
|
2,193 |
2.8 |
% |
|
Dollars |
$993,913 |
$953,728 |
4.2 |
% |
$789,687 |
$869,694 |
(9.2 |
)% |
$949,856 |
$900,678 |
5.5 |
% |
|
Avg.
Price |
$400,771 |
$392,319 |
2.2 |
% |
$384,838 |
$388,256 |
(0.9 |
)% |
$421,409 |
$410,706 |
2.6 |
% |
Unconsolidated |
|
|
|
|
|
|
|
|
|
|
Joint Ventures (2) |
Home |
|
363 |
|
525 |
(30.9 |
)% |
|
347 |
|
324 |
7.1 |
% |
|
382 |
|
636 |
(39.9 |
)% |
|
Dollars |
$216,851 |
$316,194 |
(31.4 |
)% |
$219,803 |
$154,395 |
42.4 |
% |
$228,730 |
$436,715 |
(47.6 |
)% |
|
Avg.
Price |
$597,386 |
$602,276 |
(0.8 |
)% |
$633,438 |
$476,529 |
32.9 |
% |
$598,770 |
$686,659 |
(12.8 |
)% |
Grand |
|
|
|
|
|
|
|
|
|
|
Total |
Home |
|
2,843 |
|
2,956 |
(3.8 |
)% |
|
2,399 |
|
2,564 |
(6.4 |
)% |
|
2,636 |
|
2,829 |
(6.8 |
)% |
|
Dollars |
$1,210,764 |
$1,269,922 |
(4.7 |
)% |
$1,009,490 |
$1,024,089 |
(1.4 |
)% |
$1,178,586 |
$1,337,393 |
(11.9 |
)% |
|
Avg.
Price |
$425,875 |
$429,608 |
(0.9 |
)% |
$420,796 |
$399,411 |
5.4 |
% |
$447,112 |
$472,744 |
(5.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
DELIVERIES INCLUDE EXTRAS |
|
|
|
|
|
|
|
|
|
|
Notes: |
|
|
|
|
|
|
|
|
|
|
(1) Contracts are
defined as new contracts signed during the period for the purchase
of homes, less cancellations of prior contracts.(2) Represents home
deliveries, home revenues and average prices for our unconsolidated
homebuilding joint ventures for the period. We provide this data as
a supplement to our consolidated results as an indicator of the
volume managed in our unconsolidated homebuilding joint ventures.
Our proportionate share of the income or loss of unconsolidated
homebuilding and land development joint ventures is reflected as a
separate line item in our consolidated financial statements under
“Income (loss) from unconsolidated joint ventures”. |
HOVNANIAN
ENTERPRISES, INC. |
(DOLLARS
IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT
DATA UNCONSOLIDATED JOINT VENTURES ONLY) |
(UNAUDITED) |
|
|
|
|
|
Three Months - April 30, 2019 |
|
|
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Three Months Ended |
Three Months Ended |
Backlog |
|
|
April 30, |
April 30, |
April 30, |
|
|
|
2019 |
|
2018 |
% Change |
|
2019 |
|
2018 |
% Change |
|
2019 |
|
2018 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
109 |
|
137 |
(20.4 |
)% |
|
77 |
|
76 |
1.3 |
% |
|
145 |
|
302 |
(52.0 |
)% |
(NJ, PA) |
Dollars |
$64,691 |
$82,865 |
(21.9 |
)% |
$59,840 |
$29,891 |
100.2 |
% |
$95,645 |
$239,418 |
(60.1 |
)% |
|
Avg.
Price |
$593,495 |
$604,854 |
(1.9 |
)% |
$777,143 |
$393,298 |
97.6 |
% |
$659,621 |
$792,774 |
(16.8 |
)% |
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
4 |
|
25 |
(84.0 |
)% |
|
14 |
|
5 |
180.0 |
% |
|
17 |
|
52 |
(67.3 |
)% |
(DE, MD, VA, WV) |
Dollars |
$3,606 |
$20,337 |
(82.3 |
)% |
$10,831 |
$4,830 |
124.2 |
% |
$14,086 |
$42,350 |
(66.7 |
)% |
|
Avg.
Price |
$901,250 |
$813,480 |
10.8 |
% |
$773,643 |
$966,000 |
(19.9 |
)% |
$828,588 |
$814,422 |
1.7 |
% |
Midwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
2 |
|
15 |
(86.7 |
)% |
|
4 |
|
14 |
(71.4 |
)% |
|
5 |
|
31 |
(83.9 |
)% |
(IL, OH) |
Dollars |
$1,354 |
$10,532 |
(87.1 |
)% |
$2,735 |
$8,905 |
(69.3 |
)% |
$2,862 |
$23,413 |
(87.8 |
)% |
|
Avg.
Price |
$677,000 |
$702,215 |
(3.6 |
)% |
$683,750 |
$636,071 |
7.5 |
% |
$572,400 |
$755,280 |
(24.2 |
)% |
Southeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
58 |
|
39 |
48.7 |
% |
|
49 |
|
48 |
2.1 |
% |
|
124 |
|
95 |
30.5 |
% |
(FL, GA, SC) |
Dollars |
$31,519 |
$19,635 |
60.5 |
% |
$25,985 |
$21,217 |
22.5 |
% |
$66,292 |
$45,834 |
44.6 |
% |
|
Avg.
Price |
$543,431 |
$503,456 |
7.9 |
% |
$530,306 |
$442,020 |
20.0 |
% |
$534,613 |
$482,465 |
10.8 |
% |
Southwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
36 |
|
44 |
(18.2 |
)% |
|
32 |
|
29 |
10.3 |
% |
|
68 |
|
106 |
(35.8 |
)% |
(AZ, TX) |
Dollars |
$22,859 |
$26,990 |
(15.3 |
)% |
$18,622 |
$16,357 |
13.8 |
% |
$41,535 |
$63,429 |
(34.5 |
)% |
|
Avg.
Price |
$635,000 |
$613,412 |
3.5 |
% |
$581,938 |
$564,034 |
3.2 |
% |
$610,809 |
$598,385 |
2.1 |
% |
West |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
20 |
|
42 |
(52.4 |
)% |
|
19 |
|
36 |
(47.2 |
)% |
|
23 |
|
50 |
(54.0 |
)% |
(CA) |
Dollars |
$7,253 |
$18,614 |
(61.0 |
)% |
$6,763 |
$15,096 |
(55.2 |
)% |
$8,310 |
$22,271 |
(62.7 |
)% |
|
Avg.
Price |
$362,650 |
$443,190 |
(18.2 |
)% |
$355,947 |
$419,333 |
(15.1 |
)% |
$361,304 |
$445,418 |
(18.9 |
)% |
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
229 |
|
302 |
(24.2 |
)% |
|
195 |
|
208 |
(6.3 |
)% |
|
382 |
|
636 |
(39.9 |
)% |
|
Dollars |
$131,282 |
$178,973 |
(26.6 |
)% |
$124,776 |
$96,296 |
29.6 |
% |
$228,730 |
$436,715 |
(47.6 |
)% |
|
Avg.
Price |
$573,284 |
$592,630 |
(3.3 |
)% |
$639,877 |
$462,964 |
38.2 |
% |
$598,770 |
$686,659 |
(12.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
DELIVERIES INCLUDE EXTRAS |
Notes: |
(1) Contracts are
defined as new contracts signed during the period for the purchase
of homes, less cancellations of prior contracts.(2) Represents home
deliveries, home revenues and average prices for our unconsolidated
homebuilding joint ventures for the period. We provide this data as
a supplement to our consolidated results as an indicator of the
volume managed in our unconsolidated homebuilding joint ventures.
Our proportionate share of the income or loss of unconsolidated
homebuilding and land development joint ventures is reflected as a
separate line item in our consolidated financial statements under
“Income (loss) from unconsolidated joint ventures”. |
HOVNANIAN
ENTERPRISES, INC. |
(DOLLARS
IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT
DATA UNCONSOLIDATED JOINT VENTURES ONLY) |
(UNAUDITED) |
|
|
|
|
|
Six Months - April 30, 2019 |
|
|
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Six Months Ended |
Six Months Ended |
Backlog |
|
|
April 30, |
April 30, |
April 30, |
|
|
|
2019 |
|
2018 |
% Change |
|
2019 |
|
2018 |
% Change |
|
2019 |
|
2018 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
159 |
|
191 |
(16.8 |
)% |
|
133 |
|
106 |
25.5 |
% |
|
145 |
|
302 |
(52.0 |
)% |
(NJ, PA) |
Dollars |
$103,544 |
$127,529 |
(18.8 |
)% |
$102,265 |
$44,791 |
128.3 |
% |
$95,645 |
$239,418 |
(60.1 |
)% |
|
Avg.
Price |
$651,220 |
$677,689 |
(3.9 |
)% |
$768,910 |
$422,555 |
82.0 |
% |
$659,621 |
$792,774 |
(16.8 |
)% |
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
17 |
|
50 |
(66.0 |
)% |
|
24 |
|
9 |
166.7 |
% |
|
17 |
|
52 |
(67.3 |
)% |
(DE, MD, VA, WV) |
Dollars |
$14,668 |
$40,038 |
(63.4 |
)% |
$19,420 |
$8,798 |
120.7 |
% |
$14,086 |
$42,350 |
(66.7 |
)% |
|
Avg.
Price |
$862,824 |
$800,760 |
7.8 |
% |
$809,167 |
$977,555 |
(17.2 |
)% |
$828,588 |
$814,422 |
1.7 |
% |
Midwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
7 |
|
24 |
(70.8 |
)% |
|
11 |
|
20 |
(45.0 |
)% |
|
5 |
|
31 |
(83.9 |
)% |
(IL, OH) |
Dollars |
$3,963 |
$16,970 |
(76.6 |
)% |
$7,176 |
$12,275 |
(41.5 |
)% |
$2,862 |
$23,413 |
(87.8 |
)% |
|
Avg.
Price |
$566,143 |
$707,083 |
(19.9 |
)% |
$652,364 |
$613,750 |
6.3 |
% |
$572,400 |
$755,280 |
(24.2 |
)% |
Southeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
83 |
|
97 |
(14.4 |
)% |
|
81 |
|
80 |
1.3 |
% |
|
124 |
|
95 |
30.5 |
% |
(FL, GA, SC) |
Dollars |
$44,611 |
$45,706 |
(2.4 |
)% |
$41,574 |
$36,682 |
13.3 |
% |
$66,292 |
$45,834 |
44.6 |
% |
|
Avg.
Price |
$537,482 |
$471,191 |
14.1 |
% |
$513,259 |
$458,424 |
11.9 |
% |
$534,613 |
$482,465 |
10.8 |
% |
Southwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
62 |
|
93 |
(33.3 |
)% |
|
61 |
|
44 |
38.6 |
% |
|
68 |
|
106 |
(35.8 |
)% |
(AZ, TX) |
Dollars |
$37,383 |
$55,347 |
(32.5 |
)% |
$36,314 |
$25,170 |
44.3 |
% |
$41,535 |
$63,429 |
(34.5 |
)% |
|
Avg.
Price |
$602,952 |
$595,130 |
1.3 |
% |
$595,311 |
$572,042 |
4.1 |
% |
$610,809 |
$598,385 |
2.1 |
% |
West |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
35 |
|
70 |
(50.0 |
)% |
|
37 |
|
65 |
(43.1 |
)% |
|
23 |
|
50 |
(54.0 |
)% |
(CA) |
Dollars |
$12,682 |
$30,604 |
(58.6 |
)% |
$13,054 |
$26,679 |
(51.1 |
)% |
$8,310 |
$22,271 |
(62.7 |
)% |
|
Avg.
Price |
$362,343 |
$437,200 |
(17.1 |
)% |
$352,811 |
$410,446 |
(14.0 |
)% |
$361,304 |
$445,418 |
(18.9 |
)% |
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
363 |
|
525 |
(30.9 |
)% |
|
347 |
|
324 |
7.1 |
% |
|
382 |
|
636 |
(39.9 |
)% |
|
Dollars |
$216,851 |
$316,194 |
(31.4 |
)% |
$219,803 |
$154,395 |
42.4 |
% |
$228,730 |
$436,715 |
(47.6 |
)% |
|
Avg.
Price |
$597,386 |
$602,276 |
(0.8 |
)% |
$633,438 |
$476,529 |
32.9 |
% |
$598,770 |
$686,659 |
(12.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
DELIVERIES INCLUDE EXTRAS |
Notes: |
(1) Contracts are
defined as new contracts signed during the period for the purchase
of homes, less cancellations of prior contracts.(2) Represents home
deliveries, home revenues and average prices for our unconsolidated
homebuilding joint ventures for the period. We provide this data as
a supplement to our consolidated results as an indicator of the
volume managed in our unconsolidated homebuilding joint ventures.
Our proportionate share of the income or loss of unconsolidated
homebuilding and land development joint ventures is reflected as a
separate line item in our consolidated financial statements under
“Income (loss) from unconsolidated joint ventures”. |
|
|
|
Contact: |
J. Larry Sorsby |
Jeffrey T. O’Keefe |
|
Executive Vice President & CFO |
Vice President, Investor Relations |
|
732-747-7800 |
732-747-7800 |
|
|
|
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