UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): December 16, 2008
HOVNANIAN ENTERPRISES, INC.
(Exact Name of Registrant as Specified in Charter)
| Delaware | 1-8551 | 22-1851059 | ||
| (State or Other Jurisdiction of Incorporation) |
(Commission File Number) | (I.R.S. Employer Identification No.) |
110 West Front Street
P.O. Box 500
Red Bank, New Jersey 07701
(Address of Principal Executive Offices) (Zip Code)
P.O. Box 500
Red Bank, New Jersey 07701
(Address of Principal Executive Offices) (Zip Code)
(732) 747-7800
(Registrant’s telephone number, including area code)
(Registrant’s telephone number, including area code)
Not Applicable
(Former Name or Former Address, if Changed Since
Last Report)
(Former Name or Former Address, if Changed Since
Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On December 16, 2008, Hovnanian Enterprises, Inc. issued a press release announcing its
preliminary financial results for the fourth quarter and fiscal year ended October 31, 2008. A
copy of the press release is attached as Exhibit 99.
The information in this Current Report on Form 8-K and the Exhibit attached hereto is being
furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section,
nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such
filing.
The Earnings Press Release contains information about EBITDA and Adjusted EBITDA, which are
non-GAAP financial measures. The most directly comparable GAAP financial measure is net income
(loss). A reconciliation of EBITDA and Adjusted EBITDA to net income (loss) is contained in the
Earnings Press Release. The Earnings Press Release contains information about (Loss) Income Before
Income Taxes Excluding Land Related Charges and Intangible Impairments, which is a non-GAAP
financial measure. The most directly comparable GAAP financial measure is Loss Before Income Taxes.
A reconciliation of (Loss) Income Before Income Taxes Excluding Land Related Charges and Intangible
Impairments to Loss Before Income Taxes is contained in the Earnings Press Release.
Management believes EBITDA to be relevant and useful information as EBITDA is a standard
measure commonly reported and widely used by analysts, investors and others to measure our
financial performance and our ability to service our debt obligations. EBITDA is also one of
several metrics used by our management to measure the cash generated from our operations. EBITDA
does not take into account substantial costs of doing business, such as income taxes and interest
expense. While many in the financial community consider EBITDA to be an important measure of
comparative operating performance, it should be considered in addition to, but not as a substitute
for, income before income taxes, net income, cash flow provided by operating activities and other
measures of financial performance prepared in accordance with accounting principles generally
accepted in the United States that are presented on the financial statements included in the
Company’s reports filed with the Securities and Exchange Commission. Additionally, our calculation
of EBITDA may be different than the calculation used by other companies, and, therefore,
comparability may be affected.
Management believes (Loss) Income Before Income Taxes Excluding Land Related Charges and
Intangible Impairments to be relevant and useful information because it provides a better metric of
the Company’s operating performance. (Loss) Income Before Income Taxes Excluding Land Related
Charges and Intangible Impairments should be considered in addition to, but not as a substitute
for, income before income taxes, net income and other measures of financial performance prepared in
accordance with accounting principles generally accepted in the United States that are presented on
the financial statements included in the Company’s reports filed with the Securities and Exchange
Commission. Additionally, our calculation of (Loss) Income Before Income Taxes Excluding Land
Related Charges and Intangible Impairments may be different than the calculation used by other
companies, and, therefore, comparability may be affected.
The Earnings Press Release also contains information about Cash Flow, which is a non-GAAP
financial measure. The most directly comparable GAAP financial measure is Net Cash provided by (or
used in) Operating Activities. As discussed in the Earnings Press Release, the Company uses cash
flow to mean the amount of Net Cash provided by (or used in) Operating Activities for the period,
as reported on the Consolidated Statement of Cash Flows, excluding changes in mortgage notes
receivable at the mortgage company, plus (or minus) the amount of Net Cash provided (or used in)
Investing Activities. Management believes the amount of Cash Flow in any period is relevant and
useful information as Cash Flow is a standard measure commonly reported and widely used by
analysts, investors and others to measure our financial performance and our ability to service and
repay our debt obligations. Cash Flow is also one of several metrics used by our management to
measure the cash generated from (our used in) our operations and to gauge our ability to service
and repay our debt obligations. For our Company, the change in the balance of mortgage notes
receivable held at the mortgage company, which is included in
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Operating Activities, is added back to the calculation because it is generally offset by a
similar amount of change in the amount outstanding under the mortgage warehouse line of credit
(included as a Financing Activity), and would inaccurately distort the amount of Cash Flow reported
if it were included. Unlike EBITDA, Cash Flow takes into account the payment of current income
taxes and interest costs that are due and payable in the period. Cash Flow should be considered in
addition to, but not as a substitute for, EBITDA, income before income taxes, net income, cash flow
provided by operating activities and other measures of financial performance prepared in accordance
with accounting principles generally accepted in the United States that are presented on the
financial statements included in the Company’s reports filed with the Securities and Exchange
Commission. Additionally, our calculation of Cash Flow may be different than the calculation used
by other companies, and, therefore, comparability may be affected.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit 99 Earnings Press Release-Fourth Quarter and Fiscal Year Ended October 31, 2008.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| HOVNANIAN ENTERPRISES, INC. (Registrant) |
||||
| By: | /s/ J. Larry Sorsby | |||
| Name: | J. Larry Sorsby | |||
| Title: | Executive Vice President and Chief Financial Officer | |||
Date: December 16, 2008
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INDEX TO EXHIBITS
| Exhibit Number | Exhibit | |
Exhibit 99
|
Earnings Press Release-Fourth Quarter and Fiscal Year Ended October 31, 2008. |
5
Exhibit 99
Hovnanian
Enterprises, Inc.
|
News Release |
Contact:
|
J. Larry Sorsby | Jeffrey T. O’Keefe | ||
| Executive Vice President & CFO | Director of Investor Relations | |||
| 732-747-7800 | 732-747-7800 |
HOVNANIAN ENTERPRISES REPORTS FISCAL 2008 RESULTS
RED BANK, NJ, December 16, 2008 – Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national
homebuilder, reported results for its fourth quarter and fiscal year ended October 31, 2008.
Cash and Inventory as of October 31, 2008:
| • | Cash flow during the fourth quarter of fiscal 2008 was positive $175.1 million. At October 31, 2008, homebuilding cash was $838.2 million and the balance on the revolving credit facility was zero. | |
| • | The total land position, as of October 31, 2008, decreased by 24,881 lots compared to October 31, 2007, reflecting decreases of 5,241 owned lots and 19,640 optioned lots. | |
| • | As of October 31, 2008, lots controlled under option contracts totaled 16,464 and owned lots totaled 23,439. The total land position of 39,903 lots represents a 67% decline from the peak total land position at April 30, 2006. | |
| • | Started unsold homes and models declined 43%, from 2,822 at October 31, 2007 to 1,596 at October 31, 2008. |
Results for the Twelve and Three month Periods ended October 31, 2008:
| • | Total revenues were $3.3 billion for fiscal 2008 compared to $4.8 billion in the previous year. Fourth quarter total revenues were $721.4 million, a decrease of 48% from last year’s fourth quarter. |
| • | Deliveries, excluding unconsolidated joint ventures, were 10,577 homes for the full year, a 22% decline from 13,564 home deliveries last year. For the fourth quarter of 2008, deliveries were 2,294 homes, excluding unconsolidated joint ventures, a decrease of 42% from 3,969 home deliveries in the fiscal 2007 fourth quarter. |
| • | The number of net contracts for fiscal 2008, excluding unconsolidated joint ventures, decreased 41% to 6,546 homes compared with the prior year. |
| • | The number of net contracts for the fourth quarter of fiscal 2008, excluding unconsolidated joint ventures, declined 56% to 1,225 homes compared with last year’s fourth quarter. The fiscal 2007 fourth quarter is a difficult comparison because it includes approximately 1,500 “Deal of the Century” promotion net contracts. Excluding the “Deal of the Century” promotion net contracts |
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| from the fourth quarter of fiscal 2007, the number of net contracts for the fourth quarter of 2008 declined 4%. |
| • | The cancellation rate, excluding unconsolidated joint ventures, for the fourth quarter of fiscal 2008 was 42%, compared with the rate of 40% in the previous year’s fourth quarter. |
| • | Pre-tax land-related charges and intangible impairments during fiscal 2008 were $776.7 million, including land impairments of $596.0 million, write-offs of predevelopment costs and land deposits of $114.1 million, goodwill impairments of $32.7 million and intangible impairments of $2.7 million, as well as $31.2 million representing our equity portion of write-offs and impairment charges and the write down of our investments in certain unconsolidated joint ventures. |
| • | Pre-tax land-related charges and intangible impairments during the fourth quarter of fiscal 2008 were $319.9 million, including land impairments of $215.6 million, write-offs of predevelopment costs and land deposits of $47.5 million, goodwill impairments of $32.7 million and intangible impairments of $2.7 million, as well as $21.4 million representing our equity portion of write-offs and impairment charges and the write down of our investments in certain unconsolidated joint ventures. |
| • | Excluding land-related charges and intangible impairments, the pre-tax loss was $391.3 million and $136.6 million, respectively, for the twelve month and three month periods ended October 31, 2008. Including all land-related charges and intangible impairments, the pre-tax loss was $1.2 billion for all of fiscal 2008 and $456.5 million for the fiscal 2008 fourth quarter. |
| • | The FAS 109 current and deferred tax valuation allowance charge to earnings was $409.6 million for the full year and $169.5 million during the fourth quarter of 2008. The FAS 109 charge was for GAAP purposes only and is a non-cash valuation allowance against the current and deferred tax asset. For tax purposes, the tax deductions associated with the tax assets may be carried forward for 20 years. |
| • | For the twelve month period ended October 31, 2008, the net loss available to common stockholders was $1.1 billion, or $16.04 per common share, compared to a $637.8 million net loss, or $10.11 per common share, for the same period a year ago. |
| • | For the fourth quarter of fiscal 2008, the after tax loss available to common stockholders was $450.5 million, or $5.79 per common share, compared with a net loss of $469.3 million, or $7.42 per common share, in the fourth quarter of fiscal 2007. |
Other Key Operating Data:
| • | Contract backlog, as of October 31, 2008, excluding unconsolidated joint ventures, was 1,907 homes with a sales value of $646.2 million, a decrease of 68% compared to October 31, 2007. |
| • | At October 31, 2008, there were 284 active selling communities, excluding unconsolidated joint ventures, a decline of 147 active communities, or 34%, from October 31, 2007. |
| • | Homebuilding gross margin, before interest expense included in cost of sales, was 6.7% in fiscal 2008 and 4.7% for the fourth quarter of 2008, compared to 15.1% and 10.9%, respectively, in the same periods last year. |
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| • | Pretax income from Financial Services declined 40% compared to the previous year to $16.7 million for fiscal 2008 and declined 49% compared to the same period last year to $3.6 million in the fourth quarter of fiscal 2008. |
| • | For all of fiscal 2008, deliveries through unconsolidated joint ventures were 704 homes, compared with 1,364 homes during fiscal 2007. During the fourth quarter of fiscal 2008, home deliveries through unconsolidated joint ventures were 185 homes, compared with 471 homes in the fourth quarter of fiscal 2007. |
Comments From Management:
“Since mid-September, the housing market has deteriorated in lock-step with the widening financial
crisis and declines in broader economic conditions,” commented Ara K. Hovnanian, President and
Chief Executive Officer of the Company. “Despite the headwinds we faced, we ended the year with
$838 million in cash, slightly above the guidance we gave earlier in the fall before conditions
worsened. During the first quarter of fiscal 2009, we reduced our debt by $42 million through an
exchange offer in which $71 million of existing unsecured notes were exchanged for $29 million of
new secured notes maturing in 2017. We will continue to explore additional debt exchanges,
purchases and other opportunistic transactions to reduce our debt. As we look forward, our primary
focus remains on cash flow, even at the expense of lower margins,” stated Mr. Hovnanian.
“After three years of an unprecedented housing downturn and the deteriorating state of the U.S.
economy, we along with other public and private homebuilders, the National Association of
Homebuilders, the Business Roundtable and the National Association of Manufacturers, among others,
are seeking a housing stimulus package from the Federal Government to assist buyers of both
existing and new homes. The housing industry typically leads the U.S economy into and out of
recessions. It is important that a housing stimulus package is passed in order for a turnaround to
occur in housing and the U.S. economy overall. More information about the coalition and its
initiatives can be found at http://www.fixhousingfirst.com,” concluded Mr. Hovnanian.
Webcast Information:
Hovnanian Enterprises will webcast its fiscal 2008 fourth quarter financial results conference call
at 11:00 a.m. E.T. on Wednesday, December 17, 2008. The webcast can be accessed live through the
“Investor Relations” section of Hovnanian Enterprises’ Web site 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 “Audio Archives” section of the Investor Relations page on the Hovnanian Web
site at http://www.khov.com. The archive will be available for 12 months.
About Hovnanian Enterprises:
Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, Chairman, is headquartered
in Red Bank, New Jersey. The Company is one of the nation’s largest homebuilders with operations
in Arizona, California, Delaware, Florida, Georgia, Illinois, Kentucky, Maryland, Minnesota, New
Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West
Virginia. The Company’s homes are marketed and sold under the trade names K.
HovnanianÒ HomesÒ, Matzel & Mumford, Brighton Homes, Parkwood
Builders, Cambridge Homes, Town & Country Homes, Oster Homes, First Home Builders of Florida and
CraftBuilt Homes. As the developer of K. Hovnanian’sÒ
3
Four Seasons communities, the Company is also one of the nation’s largest builders of active
adult homes.
Additional information on Hovnanian Enterprises, Inc., including a summary investment profile and
the Company’s 2007 annual report, 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
or fax lists, 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, income taxes, depreciation and amortization
(“EBITDA”) and before inventory impairment loss and land option write-offs (“Adjusted EBITDA”)
are not U.S. generally accepted accounting principle (GAAP) financial measures. The most
directly comparable GAAP financial measure is net income (loss). The reconciliation of EBITDA
and Adjusted EBITDA to net income (loss) is presented in a table attached to this earnings
release.
Cash flow is a non-GAAP financial measure. The most directly comparable GAAP financial measure
is Net Cash provided by (or used in) Operating Activities. The Company uses cash flow to mean
the amount of Net Cash provided by (or used in) Operating Activities for the period, as reported
on the Consolidated Statement of Cash Flows, excluding changes in mortgage notes receivable at
the mortgage company, plus (or minus) the amount of Net Cash provided by (or used in) Investing
Activities. For the fourth quarter of 2008, cash flow was $175.1 million of net cash provided by
operating activities excluding the change in mortgage notes receivable ($174.7 million from cash
flow provided by operating activities less the change in mortgage notes receivable of
$0.4 million) plus $0.8 million of net cash provided by investing activities. For the full 2008
fiscal year, cash flow was $368.5 million of net cash provided by operating activities excluding
the change in mortgage notes receivable ($462.1 million from cash flow provided by operating
activities less the change in mortgage notes receivable of $92.0 million) less $1.6 million of
net cash used in investing activities.
(Loss) Income Before Income Taxes Excluding Land Related Charges and Intangible Impairments is a
non-GAAP financial measure. The most directly comparable GAAP financial measure is Loss Before
Income Taxes. The reconciliation of (Loss) Income Before Income Taxes Excluding Land Related
Charges and Intangible Impairments to Loss Before Income Taxes is presented in a table attached to
this earnings release.
Note: All statements in this Press Release that are not historical facts should be considered as
“forward-looking statements” within the meaning 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 risks, uncertainties and other factors include, but are not limited to, (1)
changes in general and local economic and industry and business conditions, (2) adverse weather
conditions and natural disasters, (3) changes in market conditions and seasonality of the Company’s
business, (4) changes in home prices and sales activity in the markets where the Company builds
homes, (5) government regulation, including regulations concerning development of land, the home
building, sales and customer financing processes, and the environment, (6) fluctuations in interest
rates and the availability of mortgage financing, (7) shortages in, and price fluctuations of, raw
materials and labor, (8) the availability and cost of suitable land and improved lots, (9) levels
of competition, (10)
4
availability of financing to the Company, (11) utility shortages and outages or rate fluctuations,
(12) levels of indebtedness and restrictions on the Company’s operations and activities imposed
by the agreements governing the Company’s outstanding indebtedness, (13) operations through joint
ventures with third parties, (14) product liability litigation and warranty claims, (15) successful
identification and integration of acquisitions, (16) significant influence of the Company’s
controlling stockholders, (17) geopolitical risks, terrorist acts and other acts of war and (18)
other factors described in detail in the Company’s Form 10-K for the year ended October 31, 2007
and Form 10Q per the quarter ended July 31, 2008.
(Financial Tables Follow)
5
Hovnanian Enterprises, Inc.
October 31, 2008
Statements of Consolidated Operations
(Dollars in Thousands, Except Per Share)
October 31, 2008
Statements of Consolidated Operations
(Dollars in Thousands, Except Per Share)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| October 31, | October 31, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
Total Revenues |
$ | 721,430 | $ | 1,391,869 | $ | 3,308,111 | $ | 4,798,921 | ||||||||
Costs and Expenses (a) |
1,150,649 | 1,779,351 | 4,439,559 | 5,417,664 | ||||||||||||
Loss from Unconsolidated Joint Ventures |
(27,244 | ) | (25,289 | ) | (36,600 | ) | (28,223 | ) | ||||||||
Loss Before Income Taxes |
(456,463 | ) | (412,771 | ) | (1,168,048 | ) | (646,966 | ) | ||||||||
Income Tax (Benefit) Provision |
(6,004 | ) | 53,822 | (43,458 | ) | (19,847 | ) | |||||||||
Net Loss |
(450,459 | ) | (466,593 | ) | (1,124,590 | ) | (627,119 | ) | ||||||||
Less: Preferred Stock Dividends |
— | 2,668 | — | 10,674 | ||||||||||||
Net Loss Available to Common Stockholders |
$ | (450,459 | ) | $ | (469,261 | ) | $ | (1,124,590 | ) | $ | (637,793 | ) | ||||
Per Share Data: |
||||||||||||||||
Basic: |
||||||||||||||||
Loss Per Common Share |
$ | (5.79 | ) | $ | (7.42 | ) | $ | (16.04 | ) | $ | (10.11 | ) | ||||
Weighted
Average Number of Common Shares Outstanding |
77,747 | 63,207 | 70,131 | 63,079 | ||||||||||||
Assuming Dilution: |
||||||||||||||||
Loss Per Common Share |
$ | (5.79 | ) | $ | (7.42 | ) | $ | (16.04 | ) | $ | (10.11 | ) | ||||
Weighted
Average Number of Common Shares Outstanding (b) |
77,747 | 63,207 | 70,131 | 63,079 | ||||||||||||
| (a) | Includes inventory impairment loss and land option write-offs. | |
| (b) | For periods with a net loss, basic shares are used in accordance with GAAP rules. |
Hovnanian Enterprises, Inc.
October 31, 2008
Reconciliation of (Loss) Income Before Income Taxes Excluding Land-Related
Charges and Intangible Impairments to Loss Before Income Taxes
(Dollars in Thousands)
October 31, 2008
Reconciliation of (Loss) Income Before Income Taxes Excluding Land-Related
Charges and Intangible Impairments to Loss Before Income Taxes
(Dollars in Thousands)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| October 31, | October 31, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
Loss Before Income Taxes |
$ | (456,463 | ) | $ | (412,771 | ) | $ | (1,168,048 | ) | $ | (646,966 | ) | ||||
Inventory Impairment Loss and Land Option Write-Offs |
263,159 | 273,353 | 710,120 | 457,773 | ||||||||||||
Goodwill and Definite Life Intangible Impairments |
35,363 | 77,556 | 35,363 | 135,206 | ||||||||||||
Unconsolidated Joint Venture Investment, Intangible and Land-Related Charges |
21,365 | 31,800 | 31,242 | 33,100 | ||||||||||||
(Loss) Income Before Income Taxes Excluding |
||||||||||||||||
Land-Related Charges and Intangible Impairments |
$ | (136,576 | ) | $ | (30,062 | ) | $ | (391,323 | ) | $ | (20,887 | ) | ||||
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Hovnanian Enterprises, Inc.
October 31, 2008
Gross Margin
(Dollars in Thousands)
October 31, 2008
Gross Margin
(Dollars in Thousands)
| Homebuilding Gross Margin | Homebuilding Gross Margin | |||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| October 31, | October 31, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
Sale of Homes |
$ | 677,661 | $ | 1,308,219 | $ | 3,177,853 | $ | 4,581,375 | ||||||||
Cost of Sales, Excluding Interest (a) |
645,690 | 1,165,509 | 2,965,886 | 3,890,474 | ||||||||||||
Homebuilding Gross Margin, Excluding Interest |
31,971 | 142,710 | 211,967 | 690,901 | ||||||||||||
Homebuilding Cost of Sales Interest |
41,192 | 45,598 | 136,439 | 130,825 | ||||||||||||
Homebuilding Gross Margin, Including Interest |
$ | (9,221 | ) | $ | 97,112 | $ | 75,528 | $ | 560,076 | |||||||
Gross Margin Percentage, Excluding Interest |
4.7 | % | 10.9 | % | 6.7 | % | 15.1 | % | ||||||||
Gross Margin Percentage, Including Interest |
(1.4 | %) | 7.4 | % | 2.4 | % | 12.2 | % | ||||||||
| Land Sales Gross Margin | Land Sales Gross Margin | |||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| October 31, | October 31, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
Land Sales |
$ | 26,333 | $ | 42,107 | $ | 57,776 | $ | 107,955 | ||||||||
Cost of Sales, Excluding Interest (a) |
19,270 | 36,094 | 45,016 | 87,179 | ||||||||||||
Land Sales Gross Margin, Excluding Interest |
7,063 | 6,013 | 12,760 | 20,776 | ||||||||||||
Land Sales Interest |
6,136 | 874 | 9,522 | 1,132 | ||||||||||||
Land Sales Gross Margin, Including Interest |
$ | 927 | $ | 5,139 | $ | 3,238 | $ | 19,644 | ||||||||
| (a) | 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. |
7
Hovnanian Enterprises, Inc.
October 31, 2008
Reconciliation of Adjusted EBITDA to Net Loss
(Dollars in Thousands)
October 31, 2008
Reconciliation of Adjusted EBITDA to Net Loss
(Dollars in Thousands)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| October 31, | October 31, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
Net Loss |
$ | (450,459 | ) | $ | (466,593 | ) | $ | (1,124,590 | ) | $ | (627,119 | ) | ||||
Income Tax (Benefit) Provision |
(6,004 | ) | 53,822 | (43,458 | ) | (19,847 | ) | |||||||||
Interest Expense |
66,046 | 47,223 | 176,336 | 141,754 | ||||||||||||
EBIT (a) |
(390,417 | ) | (365,548 | ) | (991,712 | ) | (505,212 | ) | ||||||||
Depreciation |
4,823 | 4,754 | 18,426 | 18,283 | ||||||||||||
Amortization of Debt Costs |
1,643 | 503 | 3,963 | 2,576 | ||||||||||||
Amortization and Impairment of Intangibles and Goodwill |
35,363 | 83,700 | 36,883 | 162,124 | ||||||||||||
EBITDA (b) |
(348,588 | ) | (276,591 | ) | (932,440 | ) | (322,229 | ) | ||||||||
Inventory Impairment Loss and Land Option Write-offs |
263,159 | 273,353 | 710,120 | 457,773 | ||||||||||||
Adjusted EBITDA (c) |
$ | (85,429 | ) | $ | (3,238 | ) | $ | (222,320 | ) | $ | 135,544 | |||||
Interest Incurred |
$ | 53,411 | $ | 46,262 | $ | 190,801 | $ | 194,547 | ||||||||
Adjusted EBITDA to Interest Incurred |
(1.60 | ) | (0.07 | ) | (1.17 | ) | 0.70 | |||||||||
| (a) | EBIT is a non-GAAP financial measure. The comparable GAAP financial measure is net income (loss). EBIT represents earnings before interest expense and income taxes. | |
| (b) | EBITDA is a non-GAAP financial measure. The comparable GAAP financial measure is net income (loss). EBITDA represents earnings before interest expense, income taxes, depreciation and amortization. | |
| (c) | Adjusted EBITDA is a non-GAAP financial measure. The comparable GAAP financial measure is net income (loss). Adjusted EBITDA represents earnings before interest expense, income taxes, depreciation, amortization and inventory impairment loss and land option write-offs. |
Hovnanian Enterprises, Inc.
October 31, 2008
Interest Incurred, Expensed and Capitalized
(Dollars in Thousands)
October 31, 2008
Interest Incurred, Expensed and Capitalized
(Dollars in Thousands)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| October 31, | October 31, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
Interest Capitalized at Beginning of Period |
$ | 182,742 | $ | 156,603 | $ | 155,642 | $ | 102,849 | ||||||||
Plus Interest Incurred |
53,411 | 46,262 | 190,801 | 194,547 | ||||||||||||
Less Interest Expensed |
66,046 | 47,223 | 176,336 | 141,754 | ||||||||||||
Interest Capitalized at End of Period (a) |
$ | 170,107 | $ | 155,642 | $ | 170,107 | $ | 155,642 | ||||||||
| (a) | The Company incurred significant inventory impairments in recent quarters, which are determined based on total inventory including capitalized interest. However, the capitalized interest amounts are shown gross before allocating any portion of the impairments to capitalized interest. |
8
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share Amounts)
CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share Amounts)
| October 31, 2008 | October 31, 2007 | |||||||
ASSETS |
||||||||
Homebuilding: |
||||||||
Cash and cash equivalents |
$ | 838,207 | $ | 12,275 | ||||
Restricted cash |
4,324 | 6,594 | ||||||
Inventories—at the lower of cost or fair value: |
||||||||
Sold and unsold homes and lots under development |
1,342,584 | 2,792,436 | ||||||
Land and land options held for future development or sale |
644,067 | 446,135 | ||||||
Consolidated inventory not owned: |
||||||||
Specific performance options |
10,610 | 12,123 | ||||||
Variable interest entities |
77,022 | 139,914 | ||||||
Other options |
84,799 | 127,726 | ||||||
Total consolidated inventory not owned |
172,431 | 279,763 | ||||||
Total inventories |
2,159,082 | 3,518,334 | ||||||
Investments in and advances to unconsolidated joint ventures |
71,097 | 176,365 | ||||||
Receivables, deposits, and notes |
78,766 | 109,856 | ||||||
Property, plant, and equipment—net |
92,817 | 106,792 | ||||||
Prepaid expenses and other assets |
156,595 | 174,032 | ||||||
Goodwill |
— | 32,658 | ||||||
Definite life intangibles |
— | 4,224 | ||||||
Total homebuilding |
3,400,888 | 4,141,130 | ||||||
Financial services: |
||||||||
Cash and cash equivalents |
9,849 | 3,958 | ||||||
Restricted cash |
4,005 | 11,572 | ||||||
Mortgage loans held for sale or investment |
90,729 | 182,627 | ||||||
Other assets |
5,025 | 6,851 | ||||||
Total financial services |
109,608 | 205,008 | ||||||
Income taxes receivable—including net deferred tax benefits |
126,826 | 194,410 | ||||||
Total assets |
$ | 3,637,322 | $ | 4,540,548 | ||||
9
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share Amounts)
CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share Amounts)
| October 31, 2008 | October 31, 2007 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Homebuilding: |
||||||||
Nonrecourse land mortgages |
$ | 820 | $ | 9,430 | ||||
Accounts payable and other liabilities |
420,695 | 515,422 | ||||||
Customers’ deposits |
28,676 | 65,221 | ||||||
Nonrecourse mortgages secured by operating properties |
22,302 | 22,985 | ||||||
Liabilities from inventory not owned |
135,077 | 189,935 | ||||||
Total homebuilding |
607,570 | 802,993 | ||||||
Financial services: |
||||||||
Accounts payable and other liabilities |
10,559 | 19,597 | ||||||
Mortgage warehouse line of credit |
84,791 | 171,133 | ||||||
Total financial services |
95,350 | 190,730 | ||||||
Notes payable: |
||||||||
Revolving credit agreements |
— | 206,750 | ||||||
Senior secured notes |
594,734 | — | ||||||
Senior notes |
1,511,071 | 1,510,600 | ||||||
Senior subordinated notes |
400,000 | 400,000 | ||||||
Accrued interest |
72,477 | 43,944 | ||||||
Total notes payable |
2,578,282 | 2,161,294 | ||||||
Total liabilities |
3,281,202 | 3,155,017 | ||||||
Minority interest from inventory not owned |
24,880 | 62,238 | ||||||
Minority interest from consolidated joint ventures |
976 | 1,490 | ||||||
Stockholders’ equity: |
||||||||
Preferred stock, $.01 par value—authorized 100,000 shares; issued
5,600 shares with a liquidation preference of $140,000, at
October 31,
2008 and October 31, 2007 |
135,299 | 135,299 | ||||||
Common stock, Class A, $.01 par value—authorized 200,000,000
shares; issued 73,803,879 shares at October 31, 2008; and
59,263,887 shares at October 31, 2007 (including 11,694,720
shares at
October 31, 2008 and October 31, 2007 held in Treasury) |
738 | 593 | ||||||
Common stock, Class B, $.01 par value (convertible to Class A at
time
of sale)—authorized 30,000,000 shares; issued 15,331,494 shares at
October 31, 2008; and issued 15,338,840 shares at October 31, 2007
(including 691,748 shares at October 31, 2008 and October 31, 2007
held in Treasury) |
153 | 153 | ||||||
Paid in capital—common stock |
418,626 | 276,998 | ||||||
(Accumulated deficit)/retained earnings |
(109,295 | ) | 1,024,017 | |||||
Treasury stock—at cost |
(115,257 | ) | (115,257 | ) | ||||
Total stockholders’ equity |
330,264 | 1,321,803 | ||||||
Total liabilities and stockholders’ equity |
$ | 3,637,322 | $ | 4,540,548 | ||||
10
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Share Amounts)
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Share Amounts)
| Three Months Ended | Year Ended | |||||||||||||||
| October 31, 2008 | October 31, 2007 | October 31, 2008 | October 31, 2007 | |||||||||||||
Revenues: |
||||||||||||||||
Homebuilding: |
||||||||||||||||
Sale of homes |
$ | 677,661 | $ | 1,308,219 | $ | 3,177,853 | $ | 4,581,375 | ||||||||
Land sales and other revenues |
32,176 | 64,150 | 78,039 | 141,355 | ||||||||||||
Total homebuilding |
709,837 | 1,372,369 | 3,255,892 | 4,722,730 | ||||||||||||
Financial services |
11,593 | 19,500 | 52,219 | 76,191 | ||||||||||||
Total revenues |
721,430 | 1,391,869 | 3,308,111 | 4,798,921 | ||||||||||||
Expenses: |
||||||||||||||||
Homebuilding: |
||||||||||||||||
Cost of sales, excluding interest |
664,960 | 1,201,603 | 3,010,902 | 3,977,653 | ||||||||||||
Cost of sales interest |
47,328 | 46,472 | 145,961 | 131,957 | ||||||||||||
Inventory impairment loss and land option write-offs |
263,159 | 273,353 | 710,120 | 457,773 | ||||||||||||
Total cost of sales |
975,447 | 1,521,428 | 3,866,983 | 4,567,383 | ||||||||||||
Selling, general and administrative |
89,249 | 137,558 | 377,068 | 539,362 | ||||||||||||
Total homebuilding expenses |
1,064,696 | 1,658,986 | 4,244,051 | 5,106,745 | ||||||||||||
Financial services |
8,013 | 12,444 | 35,567 | 48,321 | ||||||||||||
Corporate general and administrative |
20,680 | 21,559 | 82,846 | 85,878 | ||||||||||||
Other interest |
18,718 | 751 | 30,375 | 9,797 | ||||||||||||
Other operations |
3,179 | 1,911 | 9,837 | 4,799 | ||||||||||||
Goodwill and intangible amortization and impairment |
35,363 | 83,700 | 36,883 | 162,124 | ||||||||||||
Total expenses |
1,150,649 | 1,779,351 | 4,439,559 | 5,417,664 | ||||||||||||
Loss from unconsolidated joint ventures |
(27,244 | ) | (25,289 | ) | (36,600 | ) | (28,223 | ) | ||||||||
Loss before income taxes |
(456,463 | ) | (412,771 | ) | (1,168,048 | ) | (646,966 | ) | ||||||||
State and federal income tax(benefit)/provision: |
||||||||||||||||
State |
(1,940 | ) | 6,970 | 13,760 | 7,088 | |||||||||||
Federal |
(4,064 | ) | 46,852 | (57,218 | ) | (26,935 | ) | |||||||||
Total taxes |
(6,004 | ) | 53,822 | (43,458 | ) | (19,847 | ) | |||||||||
Net loss |
(450,459 | ) | (466,593 | ) | (1,124,590 | ) | (627,119 | ) | ||||||||
Less: preferred stock dividends |
— | 2,668 | — | 10,674 | ||||||||||||
Net loss available to common stockholders |
$ | (450,459 | ) | $ | (469,261 | ) | $ | (1,124,590 | ) | $ | (637,793 | ) | ||||
Per share data: |
||||||||||||||||
Basic: |
||||||||||||||||
Loss per common share |
$ | (5.79 | ) | $ | (7.42 | ) | $ | (16.04 | ) | $ | (10.11 | ) | ||||
Weighted average number of common shares
outstanding |
77,747 | 63,207 | 70,131 | 63,079 | ||||||||||||
Assuming dilution: |
||||||||||||||||
Loss per common share |
$ | (5.79 | ) | $ | (7.42 | ) | $ | (16.04 | ) | $ | (10.11 | ) | ||||
Weighted average number of common shares
outstanding |
77,747 | 63,207 | 70,131 | 63,079 | ||||||||||||
11
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(UNAUDITED)
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(UNAUDITED)
| Communities Under Development | ||||||||||||||||||||||||||||||||||||||
| Three Months - 10/31/2008 | ||||||||||||||||||||||||||||||||||||||
| Net Contracts(1) | Deliveries | |||||||||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Contract Backlog | ||||||||||||||||||||||||||||||||||||
| October 31, 2008 | October 31, 2008 | October 31, 2008 | ||||||||||||||||||||||||||||||||||||
| 2008 | 2007 | % Change | 2008 | 2007 | % Change | 2008 | 2007 | % Change | ||||||||||||||||||||||||||||||
| Northeast | ||||||||||||||||||||||||||||||||||||||
Home |
168 | 554 | (69.68 | %) | 404 | 645 | (37.36 | %) | 497 | 975 | (49.03 | %) | ||||||||||||||||||||||||||
Dollars |
66,381 | 218,424 | (69.61 | %) | 181,158 | 298,039 | (39.22 | %) | 215,604 | 503,445 | (57.17 | %) | ||||||||||||||||||||||||||
Avg. Price |
395,137 | 394,268 | 0.22 | % | 448,411 | 462,076 | (2.96 | %) | 433,811 | 516,354 | (15.99 | %) | ||||||||||||||||||||||||||
| Mid-Atlantic | ||||||||||||||||||||||||||||||||||||||
Home |
157 | 333 | (52.85 | %) | 342 | 595 | (42.52 | %) | 385 | 753 | (48.87 | %) | ||||||||||||||||||||||||||
Dollars |
50,477 | 119,188 | (57.65 | %) | 133,121 | 258,178 | (48.44 | %) | 165,871 | 358,778 | (53.77 | %) | ||||||||||||||||||||||||||
Avg. Price |
321,510 | 357,920 | (10.17 | %) | 389,243 | 433,913 | (10.29 | %) | 430,834 | 476,465 | (9.58 | %) | ||||||||||||||||||||||||||
| Southeast | ||||||||||||||||||||||||||||||||||||||
Home |
91 | 308 | (70.45 | %) | 228 | 594 | (61.62 | %) | 163 | 2,151 | (92.42 | %) | ||||||||||||||||||||||||||
Dollars |
13,314 | 76,451 | (82.59 | %) | 51,979 | 155,560 | (66.59 | %) | 45,657 | 614,575 | (92.57 | %) | ||||||||||||||||||||||||||
Avg. Price |
146,308 | 248,216 | (41.06 | %) | 227,978 | 261,886 | (12.95 | %) | 280,104 | 285,716 | (1.96 | %) | ||||||||||||||||||||||||||
| Midwest | ||||||||||||||||||||||||||||||||||||||
Home |
84 | 355 | (76.34 | %) | 267 | 358 | (25.42 | %) | 291 | 759 | (61.66 | %) | ||||||||||||||||||||||||||
Dollars |
18,866 | 71,678 | (73.68 | %) | 57,084 | 81,138 | (29.65 | %) | 61,108 | 153,171 | (60.10 | %) | ||||||||||||||||||||||||||
Avg. Price |
224,583 | 201,910 | 11.23 | % | 213,798 | 226,642 | (5.67 | %) | 209,993 | 201,806 | 4.06 | % | ||||||||||||||||||||||||||
| West | ||||||||||||||||||||||||||||||||||||||
Home |
257 | 480 | (46.46 | %) | 369 | 648 | (43.06 | %) | 151 | 549 | (72.50 | %) | ||||||||||||||||||||||||||
Dollars |
66,032 | 165,023 | (59.99 | %) | 100,609 | 259,634 | (61.25 | %) | 57,642 | 205,716 | (71.98 | %) | ||||||||||||||||||||||||||
Avg. Price |
256,930 | 343,798 | (25.27 | %) | 272,653 | 400,670 | (31.95 | %) | 381,735 | 374,710 | 1.87 | % | ||||||||||||||||||||||||||
| Southwest | ||||||||||||||||||||||||||||||||||||||
Home |
468 | 751 | (37.68 | %) | 684 | 1,129 | (39.42 | %) | 420 | 751 | (44.07 | %) | ||||||||||||||||||||||||||
Dollars |
103,626 | 168,440 | (38.48 | %) | 153,710 | 255,670 | (39.88 | %) | 100,305 | 174,206 | (42.42 | %) | ||||||||||||||||||||||||||
Avg. Price |
221,425 | 224,288 | (1.28 | %) | 224,722 | 226,457 | (0.77 | %) | 238,819 | 231,966 | 2.95 | % | ||||||||||||||||||||||||||
| Consolidated Total | ||||||||||||||||||||||||||||||||||||||
Home |
1,225 | 2,781 | (55.95 | %) | 2,294 | 3,969 | (42.20 | %) | 1,907 | 5,938 | (67.88 | %) | ||||||||||||||||||||||||||
Dollars |
318,696 | 819,204 | (61.10 | %) | 677,661 | 1,308,219 | (48.20 | %) | 646,187 | 2,009,891 | (67.85 | %) | ||||||||||||||||||||||||||
Avg. Price |
260,161 | 294,572 | (11.68 | %) | 295,406 | 329,609 | (10.38 | %) | 338,850 | 338,479 | 0.11 | % | ||||||||||||||||||||||||||
| Unconsolidated Joint Ventures | ||||||||||||||||||||||||||||||||||||||
Home |
122 | 161 | (24.22 | %) | 185 | 471 | (60.72 | %) | 263 | 427 | (38.41 | %) | ||||||||||||||||||||||||||
Dollars |
44,770 | 55,750 | (19.70 | %) | 66,217 | 205,416 | (67.76 | %) | 157,167 | 202,422 | (22.36 | %) | ||||||||||||||||||||||||||
Avg. Price |
366,959 | 346,273 | 5.97 | % | 357,932 | 436,128 | (17.93 | %) | 597,593 | 474,056 | 26.06 | % | ||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||||
Home |
1,347 | 2,942 | (54.21 | %) | 2,479 | 4,440 | (44.17 | %) | 2,170 | 6,365 | (65.91 | %) | ||||||||||||||||||||||||||
Dollars |
363,466 | 874,954 | (58.46 | %) | 743,878 | 1,513,635 | (50.85 | %) | 803,354 | 2,212,313 | (63.69 | %) | ||||||||||||||||||||||||||
Avg. Price |
269,834 | 297,401 | (9.27 | %) | 300,072 | 340,909 | (11.98 | %) | 370,209 | 347,575 | 6.51 | % | ||||||||||||||||||||||||||
DELIVERIES INCLUDE EXTRAS
| Notes: | ||
| (1) | Net contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts. | |
12
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(UNAUDITED)
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(UNAUDITED)
| Communities Under Development | ||||||||||||||||||||||||||||||||||||||
| Twelve Months - 10/31/2008 | ||||||||||||||||||||||||||||||||||||||
| Net Contracts(1) | Deliveries | |||||||||||||||||||||||||||||||||||||
| Twelve Months Ended | Twelve Months Ended | Contract Backlog | ||||||||||||||||||||||||||||||||||||
| October 31, 2008 | October 31, 2008 | October 31, 2008 | ||||||||||||||||||||||||||||||||||||
| 2008 | 2007 | % Change | 2008 | 2007 | % Change | 2008 | 2007 | % Change | ||||||||||||||||||||||||||||||
Northeast |
||||||||||||||||||||||||||||||||||||||
| Home | 934 | 1,756 | (46.8 | %) | 1,412 | 1,999 | (29.4 | %) | 497 | 975 | (49.0 | %) | ||||||||||||||||||||||||||
| Dollars | 381,401 | 802,459 | (52.5 | %) | 679,488 | 935,476 | (27.4 | %) | 215,604 | 503,445 | (57.2 | %) | ||||||||||||||||||||||||||
| Avg. Price | 408,352 | 456,981 | (10.6 | %) | 481,224 | 467,972 | 2.8 | % | 433,811 | 516,354 | (16.0 | %) | ||||||||||||||||||||||||||
Mid-Atlantic |
||||||||||||||||||||||||||||||||||||||
| Home | 880 | 1,545 | (43.0 | %) | 1,248 | 1,926 | (35.2 | %) | 385 | 753 | (48.9 | %) | ||||||||||||||||||||||||||
| Dollars | 313,405 | 677,581 | (53.8 | %) | 509,009 | 885,599 | (42.5 | %) | 165,871 | 358,778 | (53.8 | %) | ||||||||||||||||||||||||||
| Avg. Price | 356,142 | 438,564 | (18.8 | %) | 407,860 | 459,813 | (11.3 | %) | 430,834 | 476,465 | (9.6 | %) | ||||||||||||||||||||||||||
Southeast |
||||||||||||||||||||||||||||||||||||||
| Home | 584 | 1,109 | (47.3 | %) | 2,572 | 2,771 | (7.2 | %) | 163 | 2,151 | (92.4 | %) | ||||||||||||||||||||||||||
| Dollars | 132,245 | 312,070 | (57.6 | %) | 624,106 | 745,240 | (16.3 | %) | 45,657 | 614,575 | (92.6 | %) | ||||||||||||||||||||||||||
| Avg. Price | 226,447 | 281,397 | (19.5 | %) | 242,654 | 268,943 | (9.8 | %) | 280,104 | 285,716 | (2.0 | %) | ||||||||||||||||||||||||||
Midwest |
||||||||||||||||||||||||||||||||||||||
| Home | 497 | 1,134 | (56.2 | %) | 965 | 1,043 | (7.5 | %) | 291 | 759 | (61.7 | %) | ||||||||||||||||||||||||||
| Dollars | 106,887 | 248,744 | (57.0 | %) | 209,759 | 226,804 | (7.5 | %) | 61,108 | 153,171 | (60.1 | %) | ||||||||||||||||||||||||||
| Avg. Price | 215,064 | 219,351 | (2.0 | %) | 217,367 | 217,453 | (0.0 | %) | 209,993 | 201,806 | 4.1 | % | ||||||||||||||||||||||||||
West |
||||||||||||||||||||||||||||||||||||||
| Home | 1,366 | 2,067 | (33.9 | %) | 1,764 | 2,182 | (19.2 | %) | 151 | 549 | (72.5 | %) | ||||||||||||||||||||||||||
| Dollars | 421,292 | 833,986 | (49.5 | %) | 551,978 | 959,682 | (42.5 | %) | 57,642 | 205,716 | (72.0 | %) | ||||||||||||||||||||||||||
| Avg. Price | 308,413 | 403,476 | (23.6 | %) | 312,913 | 439,818 | (28.9 | %) | 381,735 | 374,710 | 1.9 | % | ||||||||||||||||||||||||||
Southwest |
||||||||||||||||||||||||||||||||||||||
| Home | 2,285 | 3,395 | (32.7 | %) | 2,616 | 3,643 | (28.2 | %) | 420 | 751 | (44.1 | %) | ||||||||||||||||||||||||||
| Dollars | 518,565 | 758,340 | (31.6 | %) | 603,513 | 828,574 | (27.2 | %) | 100,305 | 174,206 | (42.4 | %) | ||||||||||||||||||||||||||
| Avg. Price | 226,944 | 223,370 | 1.6 | % | 230,701 | 227,443 | 1.4 | % | 238,819 | 231,966 | 3.0 | % | ||||||||||||||||||||||||||
Consolidated Total |
||||||||||||||||||||||||||||||||||||||
| Home | 6,546 | 11,006 | (40.5 | %) | 10,577 | 13,564 | (22.0 | %) | 1,907 | 5,938 | (67.9 | %) | ||||||||||||||||||||||||||
| Dollars | 1,873,795 | 3,633,180 | (48.4 | %) | 3,177,853 | 4,581,375 | (30.6 | %) | 646,187 | 2,009,891 | (67.9 | %) | ||||||||||||||||||||||||||
| Avg. Price | 286,251 | 330,109 | (13.3 | %) | 300,449 | 337,760 | (11.0 | %) | 338,850 | 338,479 | 0.1 | % | ||||||||||||||||||||||||||
Unconsolidated Joint Ventures |
||||||||||||||||||||||||||||||||||||||
| Home | 540 | 661 | (18.3 | %) | 704 | 1,364 | (48.4 | %) | 263 | 427 | (38.4 | %) | ||||||||||||||||||||||||||
| Dollars | 221,858 | 211,797 | 4.8 | % | 262,605 | 535,051 | (50.9 | %) | 157,167 | 202,422 | (22.4 | %) | ||||||||||||||||||||||||||
| Avg. Price | 410,848 | 320,418 | 28.2 | % | 373,018 | 392,266 | (4.9 | %) | 597,593 | 474,056 | 26.1 | % | ||||||||||||||||||||||||||
Total |
||||||||||||||||||||||||||||||||||||||
| Home | 7,086 | 11,667 | (39.3 | %) | 11,281 | 14,928 | (24.4 | %) | 2,170 | 6,365 | (65.9 | %) | ||||||||||||||||||||||||||
| Dollars | 2,095,653 | 3,844,977 | (45.5 | %) | 3,440,458 | 5,116,426 | (32.8 | %) | 803,354 | 2,212,313 | (63.7 | %) | ||||||||||||||||||||||||||
| Avg. Price | 295,746 | 329,560 | (10.3 | %) | 304,978 | 342,740 | (11.0 | %) | 370,209 | 347,575 | 6.5 | % | ||||||||||||||||||||||||||
DELIVERIES INCLUDE EXTRAS
Notes:
(1) Net contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.