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Hovnanian Enterprises Reports Fiscal 2021 First Quarter Results
First Quarter Gross Margin Percentage Increased 440 Basis Points Year-over-Year
85% Year-over-Year Increase in Consolidated Backlog Dollars to
51% Year-over-Year Increase in Land and Land Development Spend
RESULTS FOR THE FIRST QUARTER ENDED |
- Total revenues increased 16.3% to
$574.7 million in the first quarter of fiscal 2021, compared with$494.1 million in the same quarter of the prior year.
- Homebuilding gross margin percentage, after cost of sales interest expense and land charges, increased 440 basis points to 17.3% for the three months ended
January 31, 2021 compared with 12.9% during the same period a year ago.
- Homebuilding gross margin percentage, before cost of sales interest expense and land charges, increased 340 basis points to 20.7% during the fiscal 2021 first quarter compared with 17.3% in last year’s first quarter.
- Total SG&A was
$63.7 million , or 11.1% of total revenues, in the fiscal 2021 first quarter compared with$60.4 million , or 12.2% of total revenues, in the previous year’s first quarter.
- Total interest expense was
$41.1 million for the first quarter of fiscal 2021 compared with$43.1 million during the first quarter of fiscal 2020.
- Income from unconsolidated joint ventures was
$1.9 million for the first quarter endedJanuary 31, 2021 compared with$1.5 million in the fiscal 2020 first quarter.
- Income before income taxes for the first quarter of fiscal 2021 was
$19.6 million compared with a loss of$7.4 million in the first quarter of the prior fiscal year.
- Adjusted pretax income, which is income before income taxes excluding land-related charges and gain on extinguishment of debt, was
$21.5 million in the first quarter of fiscal 2021 compared with a loss before these items of$14.1 million in the fiscal 2020 first quarter.
- Net income was
$19.0 million , or$2.75 per diluted common share, for the three months endedJanuary 31, 2021 compared with a net loss of$9.1 million , or$1.49 per common share, in the first quarter of the previous fiscal year.
- EBITDA increased 67.8% to
$62.1 million for the first quarter of fiscal 2021 compared with$37.0 million in the same quarter of the prior year.
- For the first quarter of fiscal 2021, Adjusted EBITDA increased 110.6% to
$63.9 million compared with$30.4 million in the first quarter of fiscal 2020.
- Financial services income before income taxes was
$9.1 million for the first quarter of fiscal 2021, up 105.0% compared with$4.5 million in the first quarter of fiscal 2020.
- Consolidated contracts per community increased 74.2% to 16.9 contracts per community for the first quarter ended
January 31, 2021 compared with 9.7 contracts per community in last year’s first quarter. Contracts per community, including domestic unconsolidated joint ventures(1), increased 69.9% to 15.8 for the first quarter of fiscal 2021 compared with 9.3 for the first quarter of fiscal 2020.
- The number of consolidated contracts increased 34.5% to 1,778 homes during the fiscal 2021 first quarter, compared with 1,322 homes in last year’s first quarter. The number of contracts, including domestic unconsolidated joint ventures, for the three months ended
January 31, 2021 increased 31.5% to 1,962 homes from 1,492 homes during the same quarter a year ago.
- As of the end of the first quarter of fiscal 2021, community count, including domestic unconsolidated joint ventures, was 124 communities, compared with 160 communities at
January 31, 2020 . Consolidated community count was 105 as ofJanuary 31, 2021 , compared with 136 communities at the end of the previous year’s first quarter. The decline was primarily a result of selling out of communities at a faster than anticipated pace and delayed community openings.
- Despite 1,385 first quarter consolidated deliveries, consolidated lots controlled increased by 733 lots sequentially to 26,782 at
January 31, 2021 from 26,049 lots atOctober 31, 2020 , which illustrated our ability to control more lots than we delivered.
- Plan to reactivate approximately half of the lots representing multiple products in a large 1,400 home masterplan community in
Northern California .
- During
February 2021 , we raised home prices more aggressively to further increase margins and attempt to slow down our sales pace. After experiencing a 100.0% year-over-year increase in contracts per community in the month ofJanuary 2021 , the contracts per community forFebruary 2021 only increased 27.1% to 6.1 compared with 4.8 for the same month one year ago.
- The dollar value of
February 2021 consolidated contracts increased 8.6% to$283.0 million compared with$260.7 million in February last year; however, the number of consolidated contracts declined to 613 homes compared to 647 homes inFebruary 2020 .
- The dollar value of consolidated contract backlog, as of
January 31, 2021 , increased 85.2% to$1.67 billion compared with$899.6 million as ofJanuary 31, 2020 . The dollar value of contract backlog, including domestic unconsolidated joint ventures, as ofJanuary 31, 2021 , increased 70.3% to$1.88 billion compared with$1.10 billion as ofJanuary 31, 2020 .
- Consolidated deliveries increased 12.1% to 1,385 homes in the fiscal 2021 first quarter compared with 1,236 homes in the previous year’s first quarter. For the fiscal 2021 first quarter, deliveries, including domestic unconsolidated joint ventures, increased 8.6% to 1,504 homes compared with 1,385 homes during the first quarter of fiscal 2020.
- The contract cancellation rate for consolidated contracts was 17% for the first quarter ended
January 31, 2021 compared with 19% in the fiscal 2020 first quarter. The contract cancellation rate for contracts including domestic unconsolidated joint ventures was 16% for the first quarter of fiscal 2021 compared with 19% in the first quarter of the prior year.
(1)When we refer to “Domestic Unconsolidated Joint Ventures”, we are excluding results from our single community unconsolidated joint venture in the
LIQUIDITY AND INVENTORY AS OF |
- During the first quarter of fiscal 2021, land and land development spending was
$178.6 million , an increase compared with$117.9 million in last year’s first quarter.
- Total liquidity at the end of the first quarter of fiscal 2021 was
$306.4 million , above our targeted liquidity range of$170 million to$245 million .
- Delivered 1,385 homes, but contracted to buy 2,140 new lots, net of walk aways, during the first quarter of fiscal 2021.
- As of
January 31, 2021 , consolidated lots controlled totaled 26,782, which, based on trailing twelve-month deliveries, equaled a 4.6 years’ supply.
FINANCIAL GUIDANCE(2): |
- Assuming no changes in current market conditions, for the second quarter of fiscal 2021, total revenues are expected to be between
$700 million and$750 million ; adjusted pretax income is expected to be between$30 million and$45 million and adjusted EBITDA is expected to be between$75 million and$90 million .
- Assuming no changes in current market conditions, for all of fiscal 2021, total revenues are expected to be between
$2.65 billion and$2.80 billion ; adjusted pretax income is expected to be between$140 million and$160 million and adjusted EBITDA is expected to be between$300 million and$340 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 impairment loss and land option write-offs and loss (gain) on extinguishment of debt. These items are uncertain, depend on various factors and could have a material impact on GAAP reported results.
COMMENTS FROM MANAGEMENT: |
“We are pleased with our fiscal 2021 first quarter results, as they exceeded the guidance we provided on our last conference call for gross margin percentage, total SG&A ratio, adjusted EBITDA and adjusted pretax income,” stated
“Our 85% increase in backlog dollars to
“We remain committed to further strengthening our balance sheet. In
WEBCAST INFORMATION: |
ABOUT |
Additional information on
NON-GAAP FINANCIAL MEASURES: |
Consolidated earnings before interest expense and income taxes (“EBIT”) and before depreciation and amortization (“EBITDA”) and before inventory impairment loss and land option write-offs and gain on extinguishment of debt (“Adjusted EBITDA”) are not
Homebuilding gross margin, before cost of sales interest expense and land charges, and homebuilding gross margin percentage, before cost of sales interest expense and land charges, are non-GAAP financial measures. The most directly comparable GAAP financial measures are homebuilding gross margin and homebuilding gross margin percentage, respectively. The reconciliation for historical periods of homebuilding gross margin, before cost of sales interest expense and land charges, and homebuilding gross margin percentage, before cost of sales interest expense and land charges, to homebuilding gross margin and homebuilding gross margin percentage, respectively, is presented in a table attached to this earnings release.
Adjusted pretax income, which is defined as income before income taxes excluding land-related charges and gain on extinguishment of debt is a non-GAAP financial measure. The most directly comparable GAAP financial measure is income (loss) before income taxes. The reconciliation for historical periods of adjusted pretax income to income (loss) before income taxes is presented in a table attached to this earnings release.
Total liquidity is comprised of
FORWARD-LOOKING STATEMENTS
All statements in this press release that are not historical facts should be considered as “Forward-Looking Statements” within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such forward-looking statements include but are not limited to statements related to the Company’s goals and expectations with respect to its financial results for future financial periods. Although we believe that our plans, intentions and expectations reflected in, or suggested by, such forward-looking statements are reasonable, we can give no assurance that such plans, intentions or expectations will be achieved. By their nature, forward-looking statements: (i) speak only as of the date they are made, (ii) are not guarantees of future performance or results and (iii) are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from those forward-looking statements as a result of a variety of factors. Such risks, uncertainties and other factors include, but are not limited to, (1) the outbreak and spread of COVID-19 and the measures that governments, agencies, law enforcement and/or health authorities implement to address it; (2) changes in general and local economic, industry and business conditions and impacts of a significant homebuilding downturn; (3) adverse weather and other environmental conditions and natural disasters; (4) the seasonality of the Company’s business; (5) the availability and cost of suitable land and improved lots and sufficient liquidity to invest in such land and lots; (6) shortages in, and price fluctuations of, raw materials and labor, including due to changes in trade policies and the imposition of tariffs and duties on homebuilding materials and products and related trade disputes with, and retaliatory measures taken by, other countries; (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) fluctuations in interest rates and the availability of mortgage financing; (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; and (26) certain risks, uncertainties and other factors described in detail in the Company’s Annual Report on Form 10-K for the fiscal year ended
Statements of consolidated operations | |||||||||
(In thousands, except per share data) | |||||||||
Three Months Ended | |||||||||
2021 | 2020 | ||||||||
(Unaudited) | |||||||||
Total revenues | |||||||||
Costs and expenses (1) | 556,995 | 512,488 | |||||||
Gain on extinguishment of debt | - | 9,456 | |||||||
Income from unconsolidated joint ventures | 1,916 | 1,540 | |||||||
Income (loss) before income taxes | 19,585 | (7,436 | ) | ||||||
Income tax provision | 626 | 1,712 | |||||||
Net income (loss) | $(9,148 | ) | |||||||
Per share data: | |||||||||
Basic: | |||||||||
Net income (loss) per common share | $(1.49 | ) | |||||||
Weighted average number of | |||||||||
common shares outstanding (2) | 6,225 | 6,161 | |||||||
Assuming dilution: | |||||||||
Net income (loss) per common share | $(1.49 | ) | |||||||
Weighted average number of | |||||||||
common shares outstanding (2) | 6,303 | 6,161 | |||||||
(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. | |||||||||
Reconciliation of income (loss) before income taxes excluding land-related charges and gain on extinguishment of debt to income (loss) before income taxes | |||||||||
(In thousands) | |||||||||
Three Months Ended | |||||||||
2021 | 2020 | ||||||||
(Unaudited) | |||||||||
Income (loss) before income taxes | $(7,436 | ) | |||||||
Inventory impairment loss and land option write-offs | 1,877 | 2,828 | |||||||
Gain on extinguishment of debt | - | (9,456 | ) | ||||||
Income (loss) before income taxes excluding land-related charges and gain on extinguishment of debt (1) | $(14,064 | ) | |||||||
(1) Income (loss) before income taxes excluding land-related charges and gain on extinguishment of debt is a non-GAAP financial measure. The most directly comparable GAAP financial measure is income (loss) before income taxes. |
Gross margin | |||||||
(In thousands) | |||||||
Homebuilding Gross Margin | |||||||
Three Months Ended | |||||||
2021 | 2020 | ||||||
(Unaudited) | |||||||
Sale of homes | |||||||
Cost of sales, excluding interest expense and land charges (1) | 437,372 | 396,318 | |||||
Homebuilding gross margin, before cost of sales interest expense and land charges (2) | 113,993 | 82,915 | |||||
Cost of sales interest expense, excluding land sales interest expense | 16,717 | 18,136 | |||||
Homebuilding gross margin, after cost of sales interest expense, before land charges (2) | 97,276 | 64,779 | |||||
Land charges | 1,877 | 2,828 | |||||
Homebuilding gross margin | |||||||
Homebuilding gross margin percentage | 17.3 | % | 12.9 | % | |||
Homebuilding gross margin percentage, before cost of sales interest expense and land charges (2) | 20.7 | % | 17.3 | % | |||
Homebuilding gross margin percentage, after cost of sales interest expense, before land charges (2) | 17.6 | % | 13.5 | % | |||
Land Sales Gross Margin | |||||||
Three Months Ended | |||||||
2021 | 2020 | ||||||
(Unaudited) | |||||||
Land and lot sales | |||||||
Land and lot sales cost of sales, excluding interest and land charges (1) | 2,266 | 37 | |||||
Land and lot sales gross margin, excluding interest and land charges | 1,096 | (12 | ) | ||||
Land and lot sales interest | 448 | - | |||||
Land and lot sales gross margin, including interest and excluding land charges | $(12 | ) | |||||
(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. |
Reconciliation of adjusted EBITDA to net income (loss) | ||||||
(In thousands) | ||||||
Three Months Ended | ||||||
2021 | 2020 | |||||
(Unaudited) | ||||||
Net income (loss) | $(9,148 | ) | ||||
Income tax provision | 626 | 1,712 | ||||
Interest expense | 41,140 | 43,139 | ||||
EBIT (1) | 60,725 | 35,703 | ||||
Depreciation and amortization | 1,338 | 1,279 | ||||
EBITDA (2) | 62,063 | 36,982 | ||||
Inventory impairment loss and land option write-offs | 1,877 | 2,828 | ||||
Gain on extinguishment of debt | - | (9,456 | ) | |||
Adjusted EBITDA (3) | ||||||
Interest incurred | ||||||
Adjusted EBITDA to interest incurred | 1.54 | 0.68 | ||||
(1) EBIT is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income (loss). EBIT represents earnings before interest expense and income taxes. | ||||||
(2) EBITDA is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income (loss). EBITDA represents earnings before interest expense, income taxes, depreciation and amortization. | ||||||
(3) Adjusted EBITDA is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income (loss). Adjusted EBITDA represents earnings before interest expense, income taxes, depreciation, amortization, inventory impairment loss and land option write-offs and gain on extinguishment of debt. | ||||||
Interest incurred, expensed and capitalized | ||||||
(In thousands) | ||||||
Three Months Ended | ||||||
2021 | 2020 | |||||
(Unaudited) | ||||||
Interest capitalized at beginning of period | ||||||
Plus interest incurred | 41,457 | 44,334 | ||||
Less interest expensed | 41,140 | 43,139 | ||||
Less interest contributed to unconsolidated joint venture (1) | - | 4,580 | ||||
Interest capitalized at end of period (2) | ||||||
(1) Represents capitalized interest which was included as part of the assets contributed to the joint venture the company entered into during the three months ended |
||||||
(2) Capitalized interest amounts are shown gross before allocating any portion of impairments to capitalized interest. |
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
2021 | 2020 | ||||||||
(Unaudited) | (1) | ||||||||
ASSETS | |||||||||
Homebuilding: | |||||||||
Cash and cash equivalents | |||||||||
Restricted cash and cash equivalents | 12,628 | 14,731 | |||||||
Inventories: | |||||||||
Sold and unsold homes and lots under development | 1,011,893 | 921,594 | |||||||
Land and land options held for future development or sale | 103,276 | 91,957 | |||||||
Consolidated inventory not owned | 165,980 | 182,224 | |||||||
Total inventories | 1,281,149 | 1,195,775 | |||||||
Investments in and advances to unconsolidated joint ventures | 93,509 | 103,164 | |||||||
Receivables, deposits and notes, net | 41,240 | 33,686 | |||||||
Property, plant and equipment, net | 17,812 | 18,185 | |||||||
Prepaid expenses and other assets | 60,667 | 58,705 | |||||||
Total homebuilding | 1,679,103 | 1,686,735 | |||||||
Financial services | 171,596 | 140,607 | |||||||
Total assets | |||||||||
LIABILITIES AND EQUITY | |||||||||
Homebuilding: | |||||||||
Nonrecourse mortgages secured by inventory, net of debt issuance costs | |||||||||
Accounts payable and other liabilities | 328,806 | 359,274 | |||||||
Customers’ deposits | 57,261 | 48,286 | |||||||
Liabilities from inventory not owned, net of debt issuance costs | 119,432 | 131,204 | |||||||
Senior notes and credit facilities (net of discounts, premiums and debt issuance costs) | 1,430,213 | 1,431,110 | |||||||
Accrued Interest | 50,041 | 35,563 | |||||||
Total homebuilding | 2,113,017 | 2,140,559 | |||||||
Financial services | 149,628 | 119,045 | |||||||
Income taxes payable | 4,389 | 3,832 | |||||||
Total liabilities | 2,267,034 | 2,263,436 | |||||||
Equity: | |||||||||
Preferred stock, |
|||||||||
liquidation preference of |
135,299 | 135,299 | |||||||
Common stock, Class A, |
|||||||||
60 | 60 | ||||||||
Common stock, Class B, |
|||||||||
shares; issued 652,211 shares at |
7 | 7 | |||||||
Paid in capital - common stock | 718,832 | 718,110 | |||||||
Accumulated deficit | (1,156,086 | ) | (1,175,045 | ) | |||||
stock at |
(115,360 | ) | (115,360 | ) | |||||
(417,248 | ) | (436,929 | ) | ||||||
Noncontrolling interest in consolidated joint ventures | 913 | 835 | |||||||
Total equity deficit | (416,335 | ) | (436,094 | ) | |||||
Total liabilities and equity |
(1) Derived from the audited balance sheet as of
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Per Share Data)
(Unaudited)
Three Months Ended |
||||||||||
2021 | 2020 | |||||||||
Revenues: | ||||||||||
Homebuilding: | ||||||||||
Sale of homes | ||||||||||
Land sales and other revenues | 3,802 | 809 | ||||||||
Total homebuilding | 555,167 | 480,042 | ||||||||
Financial services | 19,497 | 14,014 | ||||||||
Total revenues | 574,664 | 494,056 | ||||||||
Expenses: | ||||||||||
Homebuilding: | ||||||||||
Cost of sales, excluding interest | 439,638 | 396,355 | ||||||||
Cost of sales interest | 17,165 | 18,136 | ||||||||
Inventory impairment loss and land option write-offs | 1,877 | 2,828 | ||||||||
Total cost of sales | 458,680 | 417,319 | ||||||||
Selling, general and administrative | 40,225 | 40,674 | ||||||||
Total homebuilding expenses | 498,905 | 457,993 | ||||||||
Financial services | 10,354 | 9,554 | ||||||||
Corporate general and administrative | 23,483 | 19,744 | ||||||||
Other interest | 23,975 | 25,003 | ||||||||
Other operations | 278 | 194 | ||||||||
Total expenses | 556,995 | 512,488 | ||||||||
Gain on extinguishment of debt | - | 9,456 | ||||||||
Income from unconsolidated joint ventures | 1,916 | 1,540 | ||||||||
Income (loss) before income taxes | 19,585 | (7,436 | ) | |||||||
State and federal income tax provision: | ||||||||||
State | 626 | 1,712 | ||||||||
Federal | - | - | ||||||||
Total income taxes | 626 | 1,712 | ||||||||
Net income (loss) | $(9,148 | ) | ||||||||
Per share data: | ||||||||||
Basic: | ||||||||||
Net income (loss) per common share | $(1.49 | ) | ||||||||
Weighted-average number of common shares outstanding | 6,225 | 6,161 | ||||||||
Assuming dilution: | ||||||||||
Net income (loss) per common share | $(1.49 | ) | ||||||||
Weighted-average number of common shares outstanding | 6,303 | 6,161 |
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) | |||||||||||||||||||
(SEGMENT DATA EXCLUDES UNCONSOLIDATED JOINT VENTURES) | |||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||
Contracts (1) | Deliveries | Contract | |||||||||||||||||
Three Months Ended | Three Months Ended | Backlog | |||||||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||||||
Northeast | |||||||||||||||||||
(NJ, PA) | Home | 43 | 63 | (31.7)% | 53 | 81 | (34.6)% | 120 | 134 | (10.4)% | |||||||||
Dollars | 2.0% | (31.0)% | 13.8% | ||||||||||||||||
Avg. Price | 49.5% | 5.4% | 27.1% | ||||||||||||||||
Mid- |
|||||||||||||||||||
(DE, MD, |
Home | 229 | 183 | 25.1% | 176 | 155 | 13.5% | 610 | 350 | 74.3% | |||||||||
Dollars | 54.2% | 6.1% | 80.7% | ||||||||||||||||
Avg. Price | 23.2% | (6.6)% | 3.7% | ||||||||||||||||
Midwest | |||||||||||||||||||
(IL, OH) | Home | 238 | 187 | 27.3% | 183 | 159 | 15.1% | 651 | 478 | 36.2% | |||||||||
Dollars | 36.2% | 22.0% | 42.9% | ||||||||||||||||
Avg. Price | 7.0% | 6.0% | 4.9% | ||||||||||||||||
Southeast | |||||||||||||||||||
(FL, GA, SC) | Home | 210 | 155 | 35.5% | 102 | 97 | 5.2% | 406 | 305 | 33.1% | |||||||||
Dollars | 46.2% | 24.4% | 43.0% | ||||||||||||||||
Avg. Price | 7.9% | 18.3% | 7.4% | ||||||||||||||||
Southwest | |||||||||||||||||||
(AZ, TX) | Home | 736 | 528 | 39.4% | 582 | 493 | 18.1% | 1,220 | 698 | 74.8% | |||||||||
Dollars | 50.1% | 16.2% | 78.3% | ||||||||||||||||
Avg. Price | 7.7% | (1.6)% | 2.0% | ||||||||||||||||
West | |||||||||||||||||||
(CA) | Home | 322 | 206 | 56.3% | 289 | 251 | 15.1% | 788 | 256 | 207.8% | |||||||||
Dollars | 91.7% | 35.3% | 253.0% | ||||||||||||||||
Avg. Price | 22.6% | 17.6% | 14.7% | ||||||||||||||||
Consolidated Total | |||||||||||||||||||
Home | 1,778 | 1,322 | 34.5% | 1,385 | 1,236 | 12.1% | 3,795 | 2,221 | 70.9% | ||||||||||
Dollars | 53.0% | 15.1% | 85.2% | ||||||||||||||||
Avg. Price | 13.7% | 2.7% | 8.4% | ||||||||||||||||
Unconsolidated joint ventures (2) | |||||||||||||||||||
(excluding KSA JV) | Home | 184 | 170 | 8.2% | 119 | 149 | (20.1)% | 391 | 336 | 16.4% | |||||||||
Dollars | (4.7)% | (17.6)% | 5.0% | ||||||||||||||||
Avg. Price | (11.9)% | 3.1% | (9.8)% | ||||||||||||||||
Grand Total | |||||||||||||||||||
Home | 1,962 | 1,492 | 31.5% | 1,504 | 1,385 | 8.6% | 4,186 | 2,557 | 63.7% | ||||||||||
Dollars | 43.2% | 10.1% | 70.3% | ||||||||||||||||
Avg. Price | 8.9% | 1.4% | 4.0% | ||||||||||||||||
KSA JV Only | |||||||||||||||||||
Home | 213 | 95 | 124.2% | 0 | 0 | 0.0% | 1,305 | 297 | 339.4% | ||||||||||
Dollars | 124.9% | 0.0% | 334.8% | ||||||||||||||||
Avg. Price | 0.3% | 0.0% | (1.0)% | ||||||||||||||||
DELIVERIES INCLUDE EXTRAS | |||||||||||||||||||
Notes: | |||||||||||||||||||
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts. | |||||||||||||||||||
(2) 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”. |
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) | |||||||||||||||||||
(SEGMENT DATA UNCONSOLIDATED JOINT VENTURES ONLY) | |||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||
Contracts (1) | Deliveries | Contract | |||||||||||||||||
Three Months Ended | Three Months Ended | Backlog | |||||||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||||||
Northeast | |||||||||||||||||||
unconsolidated joint ventures | Home | 13 | 57 | (77.2)% | 14 | 50 | (72.0)% | 17 | 83 | (79.5)% | |||||||||
(excluding KSA JV) | Dollars | (60.6)% | (52.3)% | (65.7)% | |||||||||||||||
(NJ, PA) | Avg. Price | 72.6% | 70.4% | 67.6% | |||||||||||||||
Mid- |
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( |
Home | 23 | 17 | 35.3% | 30 | 12 | 150.0% | 83 | 47 | 76.6% | |||||||||
(DE, MD, |
Dollars | 43.8% | 133.0% | 90.1% | |||||||||||||||
Avg. Price | 6.3% | (6.8)% | 7.7% | ||||||||||||||||
Midwest | |||||||||||||||||||
unconsolidated joint ventures | Home | 1 | 6 | (83.3)% | 1 | 4 | (75.0)% | 0 | 5 | (100.0)% | |||||||||
(IL, OH) | Dollars | (85.9)% | (76.1)% | (100.0)% | |||||||||||||||
Avg. Price | (15.2)% | (4.3)% | (100.0)% | ||||||||||||||||
Southeast | |||||||||||||||||||
unconsolidated joint ventures | Home | 117 | 37 | 216.2% | 51 | 45 | 13.3% | 215 | 115 | 87.0% | |||||||||
(FL, GA, SC) | Dollars | 170.0% | 17.3% | 85.4% | |||||||||||||||
Avg. Price | (14.6)% | 3.5% | (0.8)% | ||||||||||||||||
Southwest | |||||||||||||||||||
unconsolidated joint ventures | Home | 4 | 35 | (88.6)% | 15 | 17 | (11.8)% | 35 | 63 | (44.4)% | |||||||||
(AZ, TX) | Dollars | (85.5)% | (17.1)% | (46.4)% | |||||||||||||||
Avg. Price | 26.5% | (6.0)% | (3.5)% | ||||||||||||||||
West | |||||||||||||||||||
unconsolidated joint ventures | Home | 26 | 18 | 44.4% | 8 | 21 | (61.9)% | 41 | 23 | 78.3% | |||||||||
(CA) | Dollars | 50.5% | (63.6)% | 75.8% | |||||||||||||||
Avg. Price | 4.2% | (4.6)% | (1.4)% | ||||||||||||||||
(Excluding KSA JV) | Home | 184 | 170 | 8.2% | 119 | 149 | (20.1)% | 391 | 336 | 16.4% | |||||||||
Dollars | (4.7)% | (17.6)% | 5.0% | ||||||||||||||||
Avg. Price | (11.9)% | 3.1% | (9.8)% | ||||||||||||||||
KSA JV Only | |||||||||||||||||||
Home | 213 | 95 | 124.2% | 0 | 0 | 0.0% | 1,305 | 297 | 339.4% | ||||||||||
Dollars | 124.9% | 0.0% | 334.8% | ||||||||||||||||
Avg. Price | 0.3% | 0.0% | (1.0)% | ||||||||||||||||
DELIVERIES INCLUDE EXTRAS | |||||||||||||||||||
Notes: | |||||||||||||||||||
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts. | |||||||||||||||||||
(2) 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: | Jeffrey T. O’Keefe | |
Executive Vice President & CFO | Vice President, Investor Relations | |
732-747-7800 | 732-747-7800 | |
Source: Hovnanian Enterprises, Inc.