UNITED STATES
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
Date of Report (Date of earliest event reported): September 6, 2012
HOVNANIAN ENTERPRISES, INC.
(Exact Name of Registrant as Specified in Charter)
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Delaware
(State or Other
Jurisdiction
of Incorporation)
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1-8551
(Commission File Number)
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22-1851059
(I.R.S. Employer
Identification No.)
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110 West Front Street
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)
Not Applicable
(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):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02. Results of Operations and Financial Condition.
On September 6, 2012, Hovnanian Enterprises, Inc. issued a press release announcing its preliminary financial results for the fiscal third quarter ended July 31, 2012. A copy of the press release is attached as Exhibit 99.1.
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 EBIT, EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. The most directly comparable GAAP financial measure is net income (loss). A reconciliation of EBIT, EBITDA and Adjusted EBITDA to net income (loss) is contained in the Earnings Press Release. The Earnings Press Release contains information about Loss Before Income Taxes Excluding Land-Related Charges, Expenses Associated with Debt Exchange Offer and (Gain) Loss on Extinguishment of Debt, which is a non−GAAP financial measure. The most directly comparable GAAP financial measure is Loss Before Income Taxes. A reconciliation of Loss Before Income Taxes Excluding Land-Related Charges, Expenses Associated with Debt Exchange Offer and (Gain) Loss on Extinguishment of Debt 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 Before Income Taxes Excluding Land-Related Charges, Expenses Associated with Debt Exchange Offer and (Gain) Loss on Extinguishment of Debt to be relevant and useful information because it provides a better metric of the Company’s operating performance. Loss Before Income Taxes Excluding Land-Related Charges, Expenses Associated with Debt Exchange Offer and (Gain) Loss on Extinguishment of Debt should be considered in addition to, but not as a substitute for, loss 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 Before Income Taxes Excluding Land-Related Charges, Expenses Associated with Debt Exchange Offer and (Gain) Loss on Extinguishment of Debt 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 99.1 Earnings Press Release–Third Fiscal Quarter Ended July 31, 2012.
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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.
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HOVNANIAN ENTERPRISES, INC.
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(Registrant)
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By:
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/s/ J. Larry Sorsby
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Name: J. Larry Sorsby
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Title: Executive Vice President and Chief Financial Officer
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Date: September 6, 2012
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INDEX TO EXHIBITS
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Exhibit Number
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Exhibit
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Exhibit 99.1
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Earnings Press Release–Third Fiscal Quarter Ended July 31, 2012.
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4
Exhibit 99.1
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HOVNANIAN ENTERPRISES, INC.
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News Release
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Contact:
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J. Larry Sorsby
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Jeffrey T. O’Keefe
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Executive Vice President & CFO
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Vice President, Investor Relations
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732-747-7800
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732-747-7800
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HOVNANIAN ENTERPRISES REPORTS THIRD QUARTER FISCAL 2012 RESULTS
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RED BANK, NJ, September 6, 2012 – Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, reported results for its third quarter and nine months ended July 31, 2012.
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RESULTS FOR THREE AND NINE MONTH PERIODS ENDED JULY 31, 2012:
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·
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Net income was $34.7 million during the fiscal 2012 third quarter, or $0.25 per common share, compared with a net loss of $50.9 million, or $0.47 per common share, in last year’s third quarter. This represents an increase of $85.6 million over last year’s net income during the quarter. Net income in the fiscal 2012 third quarter benefitted from the reversal of $37.0 million of state tax reserves.
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In the first nine months of fiscal 2012, net income was $18.2 million, or $0.15 per common share, compared with a net loss of $187.7 million, or $1.92 per common share, in the prior year’s first nine months.
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·
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Total revenues were $387.0 million during the fiscal 2012 third quarter up 35.5% compared with $285.6 million in last year’s third quarter. In the first nine months of fiscal 2012, total revenues were $998.3 million up 25.8% compared with $793.3 million in the prior year’s first nine months.
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·
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The dollar value of net contracts, including unconsolidated joint ventures, for the third quarter ended July 31, 2012 increased 31.8% to $507.0 million compared with $384.6 million in the same quarter last year. The number of net contracts increased 18.8% to 1,541 homes from 1,297 homes in the same quarter last year.
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For the nine months ended July 31, 2012, the dollar value of net contracts, including unconsolidated joint ventures, increased 43.0% to $1.4 billion compared with $980.7 million in the same period a year ago and the number of net contracts increased 32.7% to 4,395 homes compared with 3,313 homes in the first nine months last year.
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Homebuilding gross margin percentage, before interest expense included in cost of sales, was 18.2% for the fiscal 2012 third quarter, compared to 15.3% during the third quarter of 2011 and 17.4% in the second quarter of 2012. For the nine month period ended July 31, 2012, homebuilding gross margin percentage, before interest expense included in cost of sales, was 17.5% compared with 15.6% in the first nine months of 2011.
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Total SG&A was $48.1 million or 12.4% of total revenues for the three months ended July 31, 2012 compared to $46.5 million or 16.3% of total revenues in the third quarter of the prior year and 13.9% in the second quarter of 2012. In the first nine months of 2012, total SG&A was $141.6 million or 14.2% of total revenues compared with $153.6 million or 19.4% of total revenues in the same period last year.
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1
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Consolidated pre-tax land-related charges for the third quarter of fiscal 2012 were $0.7 million compared with $11.4 million in the third quarter of the prior year. For the nine months ended July 31, 2012, the consolidated pre-tax land-related charges were $7.2 million compared with $41.9 million in last year’s first nine months.
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Repurchased $2.0 million of unsecured senior notes for $1.5 million in cash and issued approximately 5.4 million shares of Class A common stock in exchange for $21.0 million of unsecured senior notes during the three months ended July 31, 2012, resulting in a $6.2 million gain on extinguishment of debt.
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Pre-tax loss during the third quarter of 2012 was $1.8 million compared with $55.6 million in the same period of the prior year. For the nine months ended July 31, 2012, the pre-tax loss was $17.0 million compared with $193.8 million during the first nine months a year ago.
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The contract cancellation rate, including unconsolidated joint ventures, in the third quarter of 2012 was 21%, compared with 19% during the 2011 third quarter.
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Contract backlog, as of July 31, 2012, including unconsolidated joint ventures, was 2,452 homes with a sales value of $813.9 million, which was an increase of 41.2% and 42.6%, respectively, compared to July 31, 2011.
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Deliveries, including unconsolidated joint ventures, were 1,387 homes for the third quarter of fiscal 2012, up 24.7% compared with 1,112 homes in the third quarter of the prior year. During the nine months ended July 31, 2012, deliveries, including unconsolidated joint ventures, were 3,606 homes compared with 2,971 homes in the first nine months of last year, an increase of 21.4%.
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The dollar value of net contracts and the number of net contracts, including unconsolidated joint ventures, for the month of August increased 48.7% and 26.0% respectively to $166.8 million compared with $112.2 million and to 484 homes from 384 homes in the same month last year.
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The valuation allowance was $909.1 million as of July 31, 2012. The valuation allowance is a non-cash reserve against the tax assets for GAAP purposes. For tax purposes, the tax deductions associated with the tax assets may be carried forward for 20 years from the date the deductions were incurred.
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CASH AND INVENTORY AS OF JULY 31, 2012:
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During the third quarter of 2012, we entered into a land banking arrangement with GSO Capital Partners LP (“GSO”), the credit arm of The Blackstone Group, for total acquisition and committed future development costs of up to $125 million. Under this arrangement, we sold 620 of our previously owned lots to GSO for $37.1 million in net cash proceeds with GSO agreeing to fund the remaining development costs, and we have the option to purchase back these finished lots on a quarterly takedown basis.
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To complete the $125 million land banking arrangement with GSO, we have already identified and GSO is currently evaluating additional land parcels totaling approximately $60 million in acquisition and development costs.
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After spending $117.6 million during the third quarter of 2012 on land and land development and $1.5 million to repurchase debt, homebuilding cash increased $23.1 million from the second quarter to $252.1 million, as of July 31, 2012, including $32.8 million of restricted cash required to collateralize letters of credit.
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As of July 31, 2012, the land position, including unconsolidated joint ventures, was 29,089 lots, consisting of 10,597 lots under option and 18,492 owned lots.
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COMMENTS FROM MANAGEMENT:
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“Despite a continuing weak United States economy, the dollar amount of our net contracts reflected strong year-over-year increases of 43% and 32% for our first nine months and the third quarter of fiscal 2012, respectively, as compared to the same periods in fiscal 2011. Unlike the past few years, the market for new homes has been resilient through both the spring selling season and throughout the summer months this year. We believe the housing market’s recent overall strength and our significantly improved sales pace this year indicates that the market for new homes has bounced off the bottom and is already in a period of gradual recovery. Additionally, we are encouraged with the progress we made in our operating metrics, particularly with the 290 basis point year-over-year improvement in our gross margin and the 390 basis point reduction in total SG&A as a percentage of total revenues during the third quarter,” commented Ara K. Hovnanian, Chairman of the Board, President and Chief Executive Officer.
“Since the end of fiscal 2008, we have reduced our total indebtedness by $1.1 billion, including a $23 million reduction during our third quarter of fiscal 2012 and a $169 million reduction year to date. Increasing our third quarter homebuilding cash balance to $252 million while investing $118 million in land and land development, demonstrated that we can maintain our liquidity while simultaneously buying land for future growth. As our operating results improve further, we will continue to opportunistically take steps to better position our balance sheet,” concluded Mr. Hovnanian.
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WEBCAST INFORMATION:
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Hovnanian Enterprises will webcast its fiscal 2012 third quarter financial results conference call at 11:00 a.m. E.T. on Thursday, September 6, 2012. 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 “Audio Archives” section of the Investor Relations page on the Hovnanian Website at http://www.khov.com. The archive will be available for 12 months.
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ABOUT HOVNANIAN ENTERPRISES®, INC.:
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Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, 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, Maryland, Minnesota, New Jersey, North Carolina, 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. HovnanianÒ HomesÒ, Matzel & Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes and Oster Homes. As the developer of K. Hovnanian’sÒ 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 2011 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.
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NON-GAAP FINANCIAL MEASURES:
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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, expenses associated with debt exchange offer and (gain) 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 income (loss). The reconciliation of EBIT, EBITDA and Adjusted EBITDA to net income (loss) is presented in a table attached to this earnings release.
Loss Before Income Taxes Excluding Land-Related Charges, Expenses Associated with Debt Exchange Offer and (Gain) 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 of Loss Before Income Taxes Excluding Land-Related Charges, Expenses Associated with Debt Exchange Offer and (Gain) Loss on Extinguishment of Debt to Loss Before Income Taxes is presented in a table attached to this earnings release.
FORWARD-LOOKING STATEMENTS
All statements in this press release that are not historical facts should be considered as “forward-looking statements.” 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. 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. Such risks, uncertainties and other factors include, but are not limited to, (1) changes in general and local economic and industry and business conditions and impacts of the sustained homebuilding downturn, (2) adverse weather and other environmental 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, tax laws, 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) 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) the Company's sources of liquidity, (14) changes in credit ratings, (15) availability of net operating loss carryforwards, (16) operations through joint ventures with third parties, (17) product liability litigation, warranty claims and claims by mortgage investors, (18) successful identification and integration of acquisitions, (19) significant influence of the Company’s controlling stockholders, (20) changes in tax laws affecting the after-tax costs of owning a home, (21) geopolitical risks, terrorist acts and other acts of war, and (22) other factors described in detail in the Company’s Annual Report on Form 10-K for the year ended October 31, 2011 and the Company’s Quarterly Report on Form 10-Q for the quarterly period ended April 30, 2012. 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)
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Hovnanian Enterprises, Inc.
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July 31, 2012
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Statements of Consolidated Operations
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(Dollars in Thousands, Except Per Share Data)
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Three Months Ended
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Nine Months Ended
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July 31,
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July 31,
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2012
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2011
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2012
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2011
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(Unaudited)
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(Unaudited)
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Total Revenues
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$387,011 | $285,618 | $998,309 | $793,282 | ||||||||||||
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Costs and Expenses (a)
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395,910 | 337,547 | 1,075,640 | 977,588 | ||||||||||||
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Gain (Loss) on Extinguishment of Debt
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6,230 | (1,391 | ) | 57,966 | (3,035 | ) | ||||||||||
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Gain (Loss) from Unconsolidated Joint Ventures
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852 | (2,255 | ) | 2,324 | (6,479 | ) | ||||||||||
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Loss Before Income Taxes
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(1,817 | ) | (55,575 | ) | (17,041 | ) | (193,820 | ) | ||||||||
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Income Tax Benefit
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(36,493 | ) | (4,645 | ) | (35,254 | ) | (6,081 | ) | ||||||||
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Net Income (Loss)
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$34,676 | $(50,930 | ) | $18,213 | $(187,739 | ) | ||||||||||
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Per Share Data:
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Basic:
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Income (Loss) Per Common Share
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$0.25 | $(0.47 | ) | $0.15 | $(1.92 | ) | ||||||||||
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Weighted Average Number of
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Common Shares Outstanding (b)
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138,472 | 108,721 | 121,357 | 97,648 | ||||||||||||
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Assuming Dilution:
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Income (Loss) Per Common Share
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$0.25 | $(0.47 | ) | $0.15 | $(1.92 | ) | ||||||||||
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Weighted Average Number of
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Common Shares Outstanding (b)
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138,552 | 108,721 | 121,380 | 97,648 | ||||||||||||
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(a) Includes inventory impairment loss and land option write-offs.
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(b) For periods with a net loss, basic shares are used in accordance with GAAP rules.
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Hovnanian Enterprises, Inc.
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July 31, 2012
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Reconciliation of Loss Before Income Taxes Excluding Land-Related
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Charges, Expenses Associated with the Debt Exchange Offer and
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(Gain) Loss on Extinguishment of Debt to Loss Before Income Taxes
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(Dollars in Thousands)
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Three Months Ended
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Nine Months Ended
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July 31,
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July 31,
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(Unaudited)
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(Unaudited)
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Loss Before Income Taxes
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$(1,817 | ) | $(55,575 | ) | $(17,041 | ) | $(193,820 | ) | ||||||||
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Inventory Impairment Loss and Land Option Write-Offs
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689 | 11,426 | 7,230 | 41,876 | ||||||||||||
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Expenses Associated with the Debt Exchange Offer
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- | - | 4,683 | - | ||||||||||||
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(Gain) Loss on Extinguishment of Debt
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(6,230 | ) | 1,391 | (57,966 | ) | 3,035 | ||||||||||
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Loss Before Income Taxes Excluding
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Land-Related Charges, Expenses Associated with the Debt Exchange Offer and (Gain) Loss on Extinguishment of Debt (a)
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$(7,358 | ) | $(42,758 | ) | $(63,094 | ) | $(148,909 | ) | ||||||||
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(a) Loss Before Income Taxes Excluding Land-Related Charges, Expenses Associated with the Debt Exchange Offer, and (Gain) Loss on Extinguishment of Debt is a non-GAAP Financial measure. The most directly comparable GAAP financial measure is Loss Before Income Taxes.
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Hovnanian Enterprises, Inc.
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July 31, 2012
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Gross Margin
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(Dollars in Thousands)
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Homebuilding Gross Margin
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Homebuilding Gross Margin
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Three Months Ended
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Nine Months Ended
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July 31,
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July 31,
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2012
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2011
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2012
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2011
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(Unaudited)
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(Unaudited)
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Sale of Homes
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$371,481 | $276,479 | $936,305 | $759,338 | ||||||||||||
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Cost of Sales, Excluding Interest (a)
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303,760 | 234,129 | 772,368 | 640,507 | ||||||||||||
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Homebuilding Gross Margin, Excluding Interest
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67,721 | 42,350 | 163,937 | 118,831 | ||||||||||||
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Homebuilding Cost of Sales Interest
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14,178 | 14,222 | 34,829 | 41,671 | ||||||||||||
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Homebuilding Gross Margin, Including Interest
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$53,543 | $28,128 | $129,108 | $77,160 | ||||||||||||
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Gross Margin Percentage, Excluding Interest
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18.2 | % | 15.3 | % | 17.5 | % | 15.6 | % | ||||||||
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Gross Margin Percentage, Including Interest
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14.4 | % | 10.2 | % | 13.8 | % | 10.2 | % | ||||||||
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Land Sales Gross Margin
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Land Sales Gross Margin
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Three Months Ended
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Nine Months Ended
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July 31,
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July 31,
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| 2012 | 2011 | 2012 | 2011 | |||||||||||||
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(Unaudited)
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(Unaudited)
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Land Sales
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$1,823 | $174 | $28,737 | $8,217 | ||||||||||||
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Cost of Sales, Excluding Interest (a)
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1,418 | 127 | 21,800 | 5,642 | ||||||||||||
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Land Sales Gross Margin, Excluding Interest
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405 | 47 | 6,937 | 2,575 | ||||||||||||
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Land Sales Interest
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120 | - | 5,262 | 2,133 | ||||||||||||
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Land Sales Gross Margin, Including Interest
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$285 | $47 | $1,675 | $442 | ||||||||||||
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(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 Condensed Consolidated Statements of Operations.
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Hovnanian Enterprises, Inc.
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July 31, 2012
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Reconciliation of Adjusted EBITDA to Net Income (Loss)
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(Dollars in Thousands)
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Three Months Ended
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Nine Months Ended
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July 31,
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July 31,
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2012
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2011
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2012
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2011
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(Unaudited)
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(Unaudited)
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Net Income (Loss)
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$34,676 | $(50,930 | ) | $18,213 | $(187,739 | ) | ||||||||||
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Income Tax Benefit
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(36,493 | ) | (4,645 | ) | (35,254 | ) | (6,081 | ) | ||||||||
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Interest Expense
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38,888 | 39,429 | 112,732 | 117,883 | ||||||||||||
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EBIT (a)
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37,071 | (16,146 | ) | 95,691 | (75,937 | ) | ||||||||||
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Depreciation
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1,494 | 2,602 | 4,711 | 7,167 | ||||||||||||
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Amortization of Debt Costs
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912 | 1,080 | 2,808 | 2,937 | ||||||||||||
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EBITDA (b)
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39,477 | (12,464 | ) | 103,210 | (65,833 | ) | ||||||||||
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Inventory Impairment Loss and Land Option Write-offs
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689 | 11,426 | 7,230 | 41,876 | ||||||||||||
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Expenses Associated with Debt Exchange Offer
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- | - | 4,683 | - | ||||||||||||
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(Gain) Loss on Extinguishment of Debt
|
(6,230 | ) | 1,391 | (57,966 | ) | 3,035 | ||||||||||
|
Adjusted EBITDA (c)
|
$33,936 | $353 | $57,157 | $(20,922 | ) | |||||||||||
|
Interest Incurred
|
$39,477 | $40,051 | $110,315 | $117,773 | ||||||||||||
|
Adjusted EBITDA to Interest Incurred
|
0.86 | 0.01 | 0.52 | (0.18 | ) | |||||||||||
|
(a) 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.
|
||||||||||||||||
|
(b) 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.
|
||||||||||||||||
|
(c) 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, expenses associated with debt exchange offer, and (gain) loss on extinguishment of debt.
|
||||||||||||||||
|
Hovnanian Enterprises, Inc.
|
||||||||||||||||
|
July 31, 2012
|
||||||||||||||||
|
Interest Incurred, Expensed and Capitalized
|
||||||||||||||||
|
(Dollars in Thousands)
|
||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
|
July 31,
|
July 31,
|
|||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
Interest Capitalized at Beginning of Period
|
$118,435 | $135,556 | $121,441 | $136,288 | ||||||||||||
|
Plus Interest Incurred
|
39,477 | 40,051 | 110,315 | 117,773 | ||||||||||||
|
Less Interest Expensed
|
38,888 | 39,429 | 112,732 | 117,883 | ||||||||||||
|
Interest Capitalized at End of Period (a)
|
$119,024 | $136,178 | $119,024 | $136,178 | ||||||||||||
|
(a) The Company incurred significant inventory impairments in recent years, which are determined based on total inventory including capitalized interest. However, the capitalized interest amounts are shown on a gross basis before allocating any portion of impairments to capitalized interest.
|
||||||||||||||||
7
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
|
July 31,
2012
|
October 31,
2011
|
|||||||
|
(Unaudited)
|
(1)
|
|||||||
|
ASSETS
|
||||||||
|
Homebuilding:
|
||||||||
|
Cash and cash equivalents
|
$
|
219,326
|
$
|
244,356
|
||||
|
Restricted cash
|
48,143
|
73,539
|
||||||
|
Inventories:
|
||||||||
|
Sold and unsold homes and lots under development
|
708,343
|
720,149
|
||||||
|
Land and land options held for future development or sale
|
213,482
|
245,529
|
||||||
|
Consolidated inventory not owned:
|
||||||||
|
Specific performance options
|
-
|
2,434
|
||||||
|
Other options
|
82,203
|
-
|
||||||
|
Total consolidated inventory not owned
|
82,203
|
2,434
|
||||||
|
Total inventories
|
1,004,028
|
968,112
|
||||||
|
Investments in and advances to unconsolidated joint ventures
|
59,680
|
57,826
|
||||||
|
Receivables, deposits, and notes
|
61,142
|
52,277
|
||||||
|
Property, plant, and equipment – net
|
49,674
|
53,266
|
||||||
|
Prepaid expenses and other assets
|
65,222
|
67,698
|
||||||
|
Total homebuilding
|
1,507,215
|
1,517,074
|
||||||
|
Financial services:
|
||||||||
|
Cash and cash equivalents
|
14,644
|
6,384
|
||||||
|
Restricted cash
|
9,020
|
4,079
|
||||||
|
Mortgage loans held for sale
|
91,353
|
72,172
|
||||||
|
Other assets
|
2,611
|
2,471
|
||||||
|
Total financial services
|
117,628
|
85,106
|
||||||
|
Total assets
|
$
|
1,624,843
|
$
|
1,602,180
|
||||
(1) Derived from the audited balance sheet as of October 31, 2011.
8
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share Amounts)
|
July 31,
2012
|
October 31,
2011
|
|||||||
|
(Unaudited)
|
(1)
|
|||||||
|
LIABILITIES AND EQUITY
|
||||||||
|
Homebuilding:
|
||||||||
|
Nonrecourse land mortgages
|
$
|
44,586
|
$
|
26,121
|
||||
|
Accounts payable and other liabilities
|
299,011
|
303,633
|
||||||
|
Customers’ deposits
|
25,143
|
16,670
|
||||||
|
Nonrecourse mortgages secured by operating properties
|
19,024
|
19,748
|
||||||
|
Liabilities from inventory not owned
|
69,797
|
2,434
|
||||||
|
Total homebuilding
|
457,561
|
368,606
|
||||||
|
Financial services:
|
||||||||
|
Accounts payable and other liabilities
|
21,696
|
14,517
|
||||||
|
Mortgage warehouse line of credit
|
78,208
|
49,729
|
||||||
|
Total financial services
|
99,904
|
64,246
|
||||||
|
Notes payable:
|
||||||||
|
Senior secured notes
|
967,871
|
786,585
|
||||||
|
Senior notes
|
458,607
|
802,862
|
||||||
|
TEU senior subordinated amortizing notes
|
7,004
|
13,323
|
||||||
|
Accrued interest
|
31,405
|
21,331
|
||||||
|
Total notes payable
|
1,464,887
|
1,624,101
|
||||||
|
Income taxes payable
|
6,692
|
41,829
|
||||||
|
Total liabilities
|
2,029,044
|
2,098,782
|
||||||
|
Equity:
|
||||||||
|
Hovnanian Enterprises, Inc. stockholders’ equity deficit:
|
||||||||
|
Preferred stock, $.01 par value - authorized 100,000 shares; issued 5,600 shares with a liquidation
preference of $140,000 at July 31, 2012 and at October 31, 2011
|
135,299
|
135,299
|
||||||
|
Common stock, Class A, $.01 par value – authorized 200,000,000 shares; issued 129,385,707
shares at July 31, 2012 and 92,141,492 shares at
October 31, 2011 (including 11,760,763 and 11,694,720 shares at July 31,
2012 and October 31, 2011, respectively, held in Treasury)
|
1,294
|
921
|
||||||
|
Common stock, Class B, $.01 par value (convertible to Class A at time of sale)
authorized 30,000,000 shares; issued 15,351,601 shares at July 31,
2012 and 15,252,212 shares at October 31, 2011 (including 691,748
shares at July 31, 2012 and October 31, 2011 held in Treasury)
|
154
|
153
|
||||||
|
Paid in capital - common stock
|
665,443
|
591,696
|
||||||
|
Accumulated deficit
|
(1,091,293
|
)
|
(1,109,506
|
)
|
||||
|
Treasury stock - at cost
|
(115,360
|
)
|
(115,257
|
)
|
||||
|
Total Hovnanian Enterprises, Inc. stockholders’ equity deficit
|
(404,463
|
)
|
(496,694
|
)
|
||||
|
Noncontrolling interest in consolidated joint ventures
|
262
|
92
|
||||||
|
Total equity deficit
|
(404,201
|
)
|
(496,602
|
)
|
||||
|
Total liabilities and equity
|
$
|
1,624,843
|
$
|
1,602,180
|
||||
(1) Derived from the audited balance sheet as of October 31, 2011.
9
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Per Share Data)
(Unaudited)
|
Three Months Ended July 31,
|
Nine Months Ended July 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
Revenues:
|
||||||||||||||||
|
Homebuilding:
|
||||||||||||||||
|
Sale of homes
|
$ | 371,481 | $ | 276,479 | $ | 936,305 | $ | 759,338 | ||||||||
|
Land sales and other revenues
|
4,743 | 1,289 | 36,014 | 13,695 | ||||||||||||
|
Total homebuilding
|
376,224 | 277,768 | 972,319 | 773,033 | ||||||||||||
|
Financial services
|
10,787 | 7,850 | 25,990 | 20,249 | ||||||||||||
|
Total revenues
|
387,011 | 285,618 | 998,309 | 793,282 | ||||||||||||
|
Expenses:
|
||||||||||||||||
|
Homebuilding:
|
||||||||||||||||
|
Cost of sales, excluding interest
|
305,178 | 234,256 | 794,168 | 646,149 | ||||||||||||
|
Cost of sales interest
|
14,298 | 14,222 | 40,091 | 43,804 | ||||||||||||
|
Inventory impairment loss and land option write-offs
|
689 | 11,426 | 7,230 | 41,876 | ||||||||||||
|
Total cost of sales
|
320,165 | 259,904 | 841,489 | 731,829 | ||||||||||||
|
Selling, general and administrative
|
36,230 | 34,900 | 104,609 | 114,944 | ||||||||||||
|
Total homebuilding expenses
|
356,395 | 294,804 | 946,098 | 846,773 | ||||||||||||
|
Financial services
|
6,111 | 5,547 | 16,651 | 16,194 | ||||||||||||
|
Corporate general and administrative
|
11,913 | 11,648 | 36,961 | 38,609 | ||||||||||||
|
Other interest
|
24,590 | 25,207 | 72,641 | 74,079 | ||||||||||||
|
Other operations (income) expense
|
(3,099 | ) | 341 | 3,289 | 1,933 | |||||||||||
|
Total expenses
|
395,910 | 337,547 | 1,075,640 | 977,588 | ||||||||||||
|
Gain (loss) on extinguishment of debt
|
6,230 | (1,391 | ) | 57,966 | (3,035 | ) | ||||||||||
|
Income (loss) from unconsolidated joint ventures
|
852 | (2,255 | ) | 2,324 | (6,479 | ) | ||||||||||
|
(Loss) before income taxes
|
(1,817 | ) | (55,575 | ) | (17,041 | ) | (193,820 | ) | ||||||||
|
State and federal income tax (benefit) provision:
|
||||||||||||||||
|
State
|
(36,563 | ) | (4,642 | ) | (35,461 | ) | (4,349 | ) | ||||||||
|
Federal
|
70 | (3 | ) | 207 | (1,732 | ) | ||||||||||
|
Total income taxes
|
(36,493 | ) | (4,645 | ) | (35,254 | ) | (6,081 | ) | ||||||||
|
Net income (loss)
|
$ | 34,676 | $ | (50,930 | ) | $ | 18,213 | $ | (187,739 | ) | ||||||
|
Per share data:
|
||||||||||||||||
|
Basic:
|
||||||||||||||||
|
Income (loss) per common share
|
$ | 0.25 | $ | (0.47 | ) | $ | 0.15 | $ | (1.92 | ) | ||||||
|
Weighted-average number of common shares outstanding
|
138,472 | 108,721 | 121,357 | 97,648 | ||||||||||||
|
Assuming dilution:
|
||||||||||||||||
|
Income (loss) per common share
|
$ | 0.25 | $ | (0.47 | ) | $ | 0.15 | $ | (1.92 | ) | ||||||
|
Weighted-average number of common shares outstanding
|
138,552 | 108,721 | 121,380 | 97,648 | ||||||||||||
10
|
HOVNANIAN ENTERPRISES, INC.
|
||||||||||||
|
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
|
||||||||||||
|
(UNAUDITED)
|
||||||||||||
|
Communities Under Development
Three Months - July 31, 2012
|
|||||||||||||||||||||||||||||||
|
Net Contracts
Three Months Ending |
Deliveries
Three Months Ending |
Contract
Backlog |
|||||||||||||||||||||||||||||
|
2012
|
2011
|
% Change
|
2012
|
2011
|
% Change
|
2012
|
2011
|
% Change
|
|||||||||||||||||||||||
| Northeast | |||||||||||||||||||||||||||||||
|
(includes unconsolidated
|
Home
|
160 | 182 | (12.1 | )% | 206 | 157 | 31.2 | % | 322 | 380 | (15.3 | )% | ||||||||||||||||||
|
joint ventures)
|
Dollars
|
$82,295 | $81,525 | 0.9 | % | $104,403 | $74,598 | 40.0 | % | $155,056 | $173,073 | (10.4 | )% | ||||||||||||||||||
|
Avg. Price
|
$514,341 | $447,940 | 14.8 | % | $506,811 | $475,146 | 6.7 | % | $481,540 | $455,455 | 5.7 | % | |||||||||||||||||||
|
Mid-Atlantic
|
|||||||||||||||||||||||||||||||
|
(includes unconsolidated
|
Home
|
189 | 190 | (0.5 | )% | 223 | 157 | 42.0 | % | 438 | 336 | 30.4 | % | ||||||||||||||||||
|
joint ventures)
|
Dollars
|
$82,805 | $76,603 | 8.1 | % | $92,484 | $60,205 | 53.6 | % | $189,875 | $138,187 | 37.4 | % | ||||||||||||||||||
|
Avg. Price
|
$438,124 | $403,174 | 8.7 | % | $414,726 | $383,471 | 8.2 | % | $433,505 | $411,271 | 5.4 | % | |||||||||||||||||||
|
Midwest
|
|||||||||||||||||||||||||||||||
|
(includes unconsolidated
|
Home
|
208 | 136 | 52.9 | % | 160 | 110 | 45.5 | % | 538 | 322 | 67.1 | % | ||||||||||||||||||
|
joint ventures)
|
Dollars
|
$53,425 | $29,953 | 78.4 | % | $36,688 | $24,169 | 51.8 | % | $123,274 | $65,938 | 87.0 | % | ||||||||||||||||||
|
Avg. Price
|
$256,853 | $220,243 | 16.6 | % | $229,294 | $219,718 | 4.4 | % | $229,133 | $204,776 | 11.9 | % | |||||||||||||||||||
|
Southeast
|
|||||||||||||||||||||||||||||||
|
(includes unconsolidated
|
Home
|
175 | 148 | 18.2 | % | 121 | 83 | 45.8 | % | 310 | 191 | 62.3 | % | ||||||||||||||||||
|
joint ventures)
|
Dollars
|
$45,783 | $36,360 | 25.9 | % | $30,305 | $20,751 | 46.0 | % | $80,384 | $49,489 | 62.4 | % | ||||||||||||||||||
|
Avg. Price
|
$261,615 | $245,676 | 6.5 | % | $250,455 | $250,012 | 0.2 | % | $259,304 | $259,105 | 0.1 | % | |||||||||||||||||||
|
Southwest
|
|||||||||||||||||||||||||||||||
|
(includes unconsolidated
|
Home
|
614 | 482 | 27.4 | % | 529 | 461 | 14.8 | % | 635 | 396 | 60.4 | % | ||||||||||||||||||
|
joint ventures)
|
Dollars
|
$166,120 | $113,370 | 46.5 | % | $139,407 | $107,861 | 29.2 | % | $180,660 | $107,686 | 67.8 | % | ||||||||||||||||||
|
Avg. Price
|
$270,553 | $235,207 | 15.0 | % | $263,529 | $233,972 | 12.6 | % | $284,505 | $271,934 | 4.6 | % | |||||||||||||||||||
|
West
|
|||||||||||||||||||||||||||||||
|
(includes unconsolidated
|
Home
|
195 | 159 | 22.6 | % | 148 | 144 | 2.8 | % | 209 | 111 | 88.3 | % | ||||||||||||||||||
|
joint ventures)
|
Dollars
|
$76,522 | $46,761 | 63.6 | % | $57,498 | $46,504 | 23.6 | % | $84,677 | $36,436 | 132.4 | % | ||||||||||||||||||
|
Avg. Price
|
$392,421 | $294,093 | 33.4 | % | $388,500 | $322,944 | 20.3 | % | $405,150 | $328,252 | 23.4 | % | |||||||||||||||||||
|
Grand Total
|
|||||||||||||||||||||||||||||||
|
(includes unconsolidated
|
Home
|
1,541 | 1,297 | 18.8 | % | 1,387 | 1,112 | 24.7 | % | 2,452 | 1,736 | 41.2 | % | ||||||||||||||||||
|
joint ventures)
|
Dollars
|
$506,950 | $384,572 | 31.8 | % | $460,785 | $334,088 | 37.9 | % | $813,926 | $570,809 | 42.6 | % | ||||||||||||||||||
|
Avg. Price
|
$328,974 | $296,509 | 10.9 | % | $332,217 | $300,439 | 10.6 | % | $331,944 | $328,807 | 1.0 | % | |||||||||||||||||||
|
Consolidated Total
|
|||||||||||||||||||||||||||||||
|
(excludes unconsolidated
|
Home
|
1,382 | 1,169 | 18.2 | % | 1,212 | 993 | 22.1 | % | 2,132 | 1,469 | 45.1 | % | ||||||||||||||||||
|
joint ventures)
|
Dollars
|
$423,396 | $332,307 | 27.4 | % | $371,481 | $276,479 | 34.4 | % | $674,159 | $467,571 | 44.2 | % | ||||||||||||||||||
|
Avg. Price
|
$306,365 | $284,266 | 7.8 | % | $306,502 | $278,428 | 10.1 | % | $316,210 | $318,292 | (0.7 | )% | |||||||||||||||||||
|
Unconsolidated
|
|||||||||||||||||||||||||||||||
|
Joint Ventures
|
Home
|
159 | 128 | 24.2 | % | 175 | 119 | 47.1 | % | 320 | 267 | 19.9 | % | ||||||||||||||||||
|
Dollars
|
$83,554 | $52,265 | 59.9 | % | $89,304 | $57,609 | 55.0 | % | $139,767 | $103,238 | 35.4 | % | |||||||||||||||||||
|
Avg. Price
|
$525,494 | $408,320 | 28.7 | % | $510,309 | $484,109 | 5.4 | % | $436,770 | $386,659 | 13.0 | % | |||||||||||||||||||
|
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.
|
||||||||||||
11
|
HOVNANIAN ENTERPRISES, INC.
|
|||||||||||||||||||||||||||||||||||||
|
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(UNAUDITED)
|
|||||||||||||||||||||||||||||||||||||
|
Communities Under Development
|
|||||||||||||||||||||||||||||||||||||
| Nine Months - July 31, 2012 | |||||||||||||||||||||||||||||||||||||
|
Net Contracts
|
Deliveries
|
Contract
|
|||||||||||||||||||||||||||||||||||
|
Nine Months Ending
|
Nine Months Ending
|
Backlog
|
|||||||||||||||||||||||||||||||||||
|
Jul 31,
|
Jul 31,
|
Jul 31,
|
|||||||||||||||||||||||||||||||||||
|
2012
|
2011
|
% Change
|
2012
|
2011
|
% Change
|
2012
|
2011
|
% Change
|
|||||||||||||||||||||||||||||
|
Northeast
|
|||||||||||||||||||||||||||||||||||||
|
(includes unconsolidated
|
Home
|
472 | 468 | 0.9 | % | 516 | 399 | 29.3 | % | 322 | 380 | (15.3 | )% | ||||||||||||||||||||||||
|
joint ventures)
|
Dollars
|
$239,378 | $211,597 | 13.1 | % | $255,705 | $188,270 | 35.8 | % | $155,056 | $173,073 | (10.4 | )% | ||||||||||||||||||||||||
|
Avg. Price
|
$507,157 | $452,130 | 12.2 | % | $495,552 | $471,855 | 5.0 | % | $481,540 | $455,455 | 5.7 | % | |||||||||||||||||||||||||
|
Mid-Atlantic
|
|||||||||||||||||||||||||||||||||||||
|
(includes unconsolidated
|
Home
|
625 | 479 | 30.5 | % | 557 | 405 | 37.5 | % | 438 | 336 | 30.4 | % | ||||||||||||||||||||||||
|
joint ventures)
|
Dollars
|
$263,575 | $184,491 | 42.9 | % | $227,540 | $153,112 | 48.6 | % | $189,875 | $138,187 | 37.4 | % | ||||||||||||||||||||||||
|
Avg. Price
|
$421,720 | $385,159 | 9.5 | % | $408,508 | $378,054 | 8.1 | % | $433,505 | $411,271 | 5.4 | % | |||||||||||||||||||||||||
|
Midwest
|
|||||||||||||||||||||||||||||||||||||
|
(includes unconsolidated
|
Home
|
638 | 361 | 76.7 | % | 400 | 325 | 23.1 | % | 538 | 322 | 67.1 | % | ||||||||||||||||||||||||
|
joint ventures)
|
Dollars
|
$148,245 | $78,832 | 88.1 | % | $92,140 | $67,617 | 36.3 | % | $123,274 | $65,938 | 87.0 | % | ||||||||||||||||||||||||
|
Avg. Price
|
$232,360 | $218,371 | 6.4 | % | $230,350 | $208,052 | 10.7 | % | $229,133 | $204,776 | 11.9 | % | |||||||||||||||||||||||||
|
Southeast
|
|||||||||||||||||||||||||||||||||||||
|
(includes unconsolidated
|
Home
|
484 | 334 | 44.9 | % | 342 | 231 | 48.1 | % | 310 | 191 | 62.3 | % | ||||||||||||||||||||||||
|
joint ventures)
|
Dollars
|
$122,269 | $81,812 | 49.5 | % | $85,326 | $55,544 | 53.6 | % | $80,384 | $49,489 | 62.4 | % | ||||||||||||||||||||||||
|
Avg. Price
|
$252,622 | $244,946 | 3.1 | % | $249,491 | $240,450 | 3.8 | % | $259,304 | $259,105 | 0.1 | % | |||||||||||||||||||||||||
|
Southwest
|
|||||||||||||||||||||||||||||||||||||
|
(includes unconsolidated
|
Home
|
1,667 | 1,283 | 29.9 | % | 1,363 | 1,224 | 11.4 | % | 635 | 396 | 60.4 | % | ||||||||||||||||||||||||
|
joint ventures)
|
Dollars
|
$436,508 | $303,166 | 44.0 | % | $344,844 | $292,427 | 17.9 | % | $180,660 | $107,686 | 67.8 | % | ||||||||||||||||||||||||
|
Avg. Price
|
$261,852 | $236,295 | 10.8 | % | $253,004 | $238,911 | 5.9 | % | $284,505 | $271,934 | 4.6 | % | |||||||||||||||||||||||||
|
West
|
|||||||||||||||||||||||||||||||||||||
|
(includes unconsolidated
|
Home
|
509 | 388 | 31.2 | % | 428 | 387 | 10.6 | % | 209 | 111 | 88.3 | % | ||||||||||||||||||||||||
|
joint ventures)
|
Dollars
|
$192,723 | $120,845 | 59.5 | % | $149,520 | $111,802 | 33.7 | % | $84,677 | $36,436 | 132.4 | % | ||||||||||||||||||||||||
|
Avg. Price
|
$378,630 | $311,456 | 21.6 | % | $349,346 | $288,894 | 20.9 | % | $405,150 | $328,252 | 23.4 | % | |||||||||||||||||||||||||
|
Grand Total
|
|||||||||||||||||||||||||||||||||||||
|
(includes unconsolidated
|
Home
|
4,395 | 3,313 | 32.7 | % | 3,606 | 2,971 | 21.4 | % | 2,452 | 1,736 | 41.2 | % | ||||||||||||||||||||||||
|
joint ventures)
|
Dollars
|
$1,402,698 | $980,743 | 43.0 | % | $1,155,075 | $868,772 | 33.0 | % | $813,926 | $570,809 | 42.6 | % | ||||||||||||||||||||||||
|
Avg. Price
|
$319,158 | $296,029 | 7.8 | % | $320,320 | $292,417 | 9.5 | % | $331,944 | $328,807 | 1.0 | % | |||||||||||||||||||||||||
|
Consolidated Total
|
|||||||||||||||||||||||||||||||||||||
|
(excludes unconsolidated
|
Home
|
3,848 | 3,007 | 28.0 | % | 3,144 | 2,737 | 14.9 | % | 2,132 | 1,469 | 45.1 | % | ||||||||||||||||||||||||
|
joint ventures)
|
Dollars
|
$1,138,104 | $851,361 | 33.7 | % | $936,305 | $759,338 | 23.3 | % | $674,159 | $467,571 | 44.2 | % | ||||||||||||||||||||||||
|
Avg. Price
|
$295,765 | $283,126 | 4.5 | % | $297,807 | $277,434 | 7.3 | % | $316,210 | $318,292 | (0.7 | )% | |||||||||||||||||||||||||
|
Unconsolidated
|
|||||||||||||||||||||||||||||||||||||
|
Joint Ventures
|
Home
|
547 | 306 | 78.8 | % | 462 | 234 | 97.4 | % | 320 | 267 | 19.9 | % | ||||||||||||||||||||||||
|
Dollars
|
$264,594 | $129,382 | 104.5 | % | $218,770 | $109,434 | 99.9 | % | $139,767 | $103,238 | 35.4 | % | |||||||||||||||||||||||||
|
Avg. Price
|
$483,718 | $422,817 | 14.4 | % | $473,528 | $467,667 | 1.3 | % | $436,770 | $386,659 | 13.0 | % | |||||||||||||||||||||||||
|
DELIVERIES INCLUDE EXTRAS
|
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|
Notes:
|
|||||||||||||||||||||||||||||||||||||
|
(1) Net contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.
|
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12