UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
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(IRS Employer Identification No.) |
(Address of Principal Executive Offices) (Zip Code)
(
(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:
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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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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)) |
Securities registered pursuant to Section 12(b) of the Act.
Title of each class |
Trading symbol(s) |
Name of each exchange on which registered |
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The |
(1) Each share of Class A Common Stock includes an associated Preferred Stock Purchase Right. Each Preferred Stock Purchase Right initially represents the right, if such Preferred Stock Purchase Right becomes exercisable, to purchase from the Company one ten-thousandth of a share of its Series B Junior Preferred Stock for each share of Common Stock. The Preferred Stock Purchase Rights currently cannot trade separately from the underlying Common Stock.
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. | Results of Operations and Financial Condition. |
On May 22, 2024, Hovnanian Enterprises, Inc. (the “Company”) issued a press release announcing its preliminary financial results for the fiscal second quarter ended April 30, 2024. 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 attached earnings press release contains information about consolidated earnings before interest expense and income taxes (“EBIT”) and before depreciation and amortization (“EBITDA”) and before inventory impairments and land option write-offs and gain on extinguishment of debt, net (“Adjusted EBITDA”) and also contains the ratio of Adjusted EBITDA to interest incurred, which are non-GAAP financial measures. The most directly comparable GAAP financial measure for EBIT, EBITDA and Adjusted EBITDA is net income. A reconciliation for historical periods of EBIT, EBITDA and Adjusted EBITDA to net income is contained in the earnings press release.
The attached earnings press release contains information about homebuilding gross margin, before cost of sales interest expense and land charges, and homebuilding gross margin percentage, before cost of sales interest expense and land charges, which are non-GAAP financial measures. The most directly comparable GAAP financial measures are homebuilding gross margin and homebuilding gross margin percentage, respectively. A reconciliation for historical periods of homebuilding gross margin, before cost of sales interest expense and land charges, and homebuilding gross margin percentage, before cost of sales interest expense and land charges, to homebuilding gross margin and homebuilding gross margin percentage, respectively, is contained in the earnings press release.
The attached earnings press release contains information about adjusted income before income taxes, which is defined as income before income taxes excluding land-related charges and gain on extinguishment of debt, net, which is a non-GAAP financial measure. The most directly comparable GAAP financial measure is income before income taxes. A reconciliation for historical periods of adjusted income before income taxes to income before income taxes is contained in the earnings press release.
The attached earnings press release contains information about earnings before interest and taxes return on investment (“EBIT ROI”), which is a non-GAAP financial measure. The most directly comparable GAAP financial measure is income before income taxes. A reconciliation for historical periods of EBIT ROI to income 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 and benchmark the Company’s financial performance without the effects of various items the Company does not believe are characteristic of its ongoing operating performance. 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 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, the Company’s calculation of EBITDA may be different than the calculation used by other companies, and, therefore, comparability may be affected.
Management believes homebuilding gross margin, before cost of sales interest expense and land charges, enables investors to better understand the Company’s operating performance. This measure is also useful internally, helping management to evaluate the Company’s operating results on a consolidated basis and relative to other companies in the Company’s industry. In particular, the magnitude and volatility of land charges for the Company, and for other homebuilders, have been significant and, as such, have made financial analysis of the Company’s industry more difficult. Homebuilding metrics excluding land charges, as well as interest amortized to cost of sales, and other similar presentations prepared by analysts and other companies are frequently used to assist investors in understanding and comparing the operating characteristics of homebuilding activities by eliminating many of the differences in companies’ respective levels of impairments and levels of debt. Homebuilding gross margin, before cost of sales interest expense and land charges, should be considered in addition to, but not as an alternative to, homebuilding gross margin determined in accordance with GAAP as an indicator of operating performance. Additionally, the Company’s calculation of homebuilding gross margin, before cost of sales interest expense and land charges, may be different than the calculation used by other companies, and, therefore, comparability may be affected.
Management believes adjusted income before taxes to be relevant and useful information because it provides a better metric of the Company’s operating performance. Adjusted income before taxes 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, the Company’s calculation of adjusted income before taxes may be different than the calculation used by other companies, and, therefore, comparability may be affected.
Management believes EBIT ROI to be relevant and useful information because it is a measure of operational performance irrespective of the capital structure of the Company. EBIT ROI should be considered in addition to, but not as a substitute for income before income taxes 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, the Company’s calculation of EBIT ROI 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-Fiscal Second Quarter Ended April 30, 2024. |
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Exhibit 104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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/ Brad G. O’Connor | |
Name: Brad G. O’Connor | ||
Title: Chief Financial Officer and Treasurer |
Date: May 22, 2024
HOVNANIAN ENTERPRISES, INC. |
News Release
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Contact: | Brad G. O’Connor | Jeffrey T. O’Keefe |
Chief Financial Officer & Treasurer | Vice President, Investor Relations | |
732-747-7800 | 732-747-7800 |
HOVNANIAN ENTERPRISES REPORTS FISCAL 2024 SECOND QUARTER RESULTS
Income Before Income Taxes Increased More Than 50% Year-Over-Year
170 Basis Points Year-Over-Year Increase in Homebuilding Gross Margin Percentage
Net Contracts per Community Increased Year-Over-Year to 13.9
MATAWAN, NJ, May 22, 2024 – Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, reported results for its fiscal second quarter and six months ended April 30, 2024.
RESULTS FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED APRIL 30, 2024:
(1)When we refer to “Domestic Unconsolidated Joint Ventures”, we are excluding results from our multi-community unconsolidated joint venture in the Kingdom of Saudi Arabia (KSA).
LIQUIDITY AND INVENTORY AS OF APRIL 30, 2024:
DEBT REDUCTION:
FINANCIAL GUIDANCE(2):
COMMENTS FROM MANAGEMENT:
FORWARD-LOOKING STATEMENTS
All statements in this press release that are not historical facts should be considered as “Forward-Looking Statements” within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such forward-looking statements include but are not limited to statements related to the Company’s goals and expectations with respect to its financial results for future financial periods and statements regarding demand for homes, mortgage rates, inflation, supply chain issues, customer incentives and underlying factors. Although we believe that our plans, intentions and expectations reflected in, or suggested by, such forward-looking statements are reasonable, we can give no assurance that such plans, intentions or expectations will be achieved. By their nature, forward-looking statements: (i) speak only as of the date they are made, (ii) are not guarantees of future performance or results and (iii) are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from those forward-looking statements as a result of a variety of factors. Such risks, uncertainties and other factors include, but are not limited to, (1) changes in general and local economic, industry and business conditions and impacts of a significant homebuilding downturn; (2) shortages in, and price fluctuations of, raw materials and labor, including due to geopolitical events, changes in trade policies, including the imposition of tariffs and duties on homebuilding materials and products and related trade disputes with and retaliatory measures taken by other countries; (3) fluctuations in interest rates and the availability of mortgage financing, including as a result of instability in the banking sector; (4) adverse weather and other environmental conditions and natural disasters; (5) the seasonality of the Company’s business; (6) the availability and cost of suitable land and improved lots and sufficient liquidity to invest in such land and lots; (7) reliance on, and the performance of, subcontractors; (8) regional and local economic factors, including dependency on certain sectors of the economy, and employment levels affecting home prices and sales activity in the markets where the Company builds homes; (9) increases in cancellations of agreements of sale; (10) increases in inflation; (11) changes in tax laws affecting the after-tax costs of owning a home; (12) legal claims brought against us and not resolved in our favor, such as product liability litigation, warranty claims and claims made by mortgage investors; (13) levels of competition; (14) utility shortages and outages or rate fluctuations; (15) information technology failures and data security breaches; (16) negative publicity; (17) high leverage and restrictions on the Company’s operations and activities imposed by the agreements governing the Company’s outstanding indebtedness; (18) availability and terms of financing to the Company; (19) the Company’s sources of liquidity; (20) changes in credit ratings; (21) government regulation, including regulations concerning development of land, the home building, sales and customer financing processes, tax laws and the environment; (22) operations through unconsolidated joint ventures with third parties; (23) significant influence of the Company’s controlling stockholders; (24) availability of net operating loss carryforwards; (25) loss of key management personnel or failure to attract qualified personnel; (26) public health issues such as major epidemic or pandemic; and (27) certain risks, uncertainties and other factors described in detail in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2023 and the Company’s Quarterly Reports on Form 10-Q for the quarterly periods during fiscal 2024 and subsequent filings with the Securities and Exchange Commission. Except as otherwise required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.
Hovnanian Enterprises, Inc. |
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April 30, 2024 |
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Statements of consolidated operations |
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(In thousands, except per share data) |
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Three Months Ended |
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Six Months Ended |
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April 30, |
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April 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(Unaudited) |
(Unaudited) |
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Total revenues |
$ |
708,380 |
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$ |
703,661 |
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$ |
1,302,576 |
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$ |
1,219,027 |
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Costs and expenses (1) |
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650,152 |
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662,946 |
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1,228,108 |
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1,167,425 |
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Gain on extinguishment of debt, net |
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- |
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- |
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1,371 |
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- |
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Income from unconsolidated joint ventures |
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11,164 |
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5,408 |
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26,116 |
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12,568 |
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Income before income taxes |
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69,392 |
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46,123 |
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101,955 |
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64,170 |
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Income tax provision |
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18,556 |
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11,977 |
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27,215 |
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11,308 |
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Net income |
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50,836 |
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34,146 |
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74,740 |
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52,862 |
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Less: preferred stock dividends |
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2,669 |
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2,669 |
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5,338 |
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5,338 |
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Net income available to common stockholders |
$ |
48,167 |
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$ |
31,477 |
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$ |
69,402 |
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$ |
47,524 |
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Per share data: |
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Basic: |
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Net income per common share |
$ |
7.12 |
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$ |
4.68 |
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$ |
10.22 |
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$ |
7.05 |
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Weighted average number of common shares outstanding |
6,457 |
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6,166 |
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6,477 |
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6,176 |
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Assuming dilution: |
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Net income per common share |
$ |
6.66 |
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$ |
4.47 |
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$ |
9.57 |
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$ |
6.74 |
|||
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Weighted average number of common shares outstanding |
6,902 |
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|
6,462 |
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6,920 |
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|
6,463 |
Hovnanian Enterprises, Inc. |
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April 30, 2024 |
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Reconciliation of income before income taxes excluding land-related charges and gain on extinguishment of debt, net to income before income taxes |
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(In thousands) |
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Three Months Ended |
Six Months Ended |
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April 30, |
April 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(Unaudited) |
(Unaudited) |
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Income before income taxes |
$ |
69,392 |
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$ |
46,123 |
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$ |
101,955 |
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$ |
64,170 |
||||
Inventory impairments and land option write-offs |
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237 |
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137 |
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539 |
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614 |
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Gain on extinguishment of debt, net |
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- |
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- |
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(1,371) |
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- |
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Income before income taxes excluding land-related charges and gain on extinguishment of debt, net (1) |
$ |
69,629 |
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$ |
46,260 |
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$ |
101,123 |
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$ |
64,784 |
(1) Income before income taxes excluding land-related charges and gain on extinguishment of debt, net is a non-GAAP financial measure. The most directly comparable GAAP financial measure is income before income taxes.
Hovnanian Enterprises, Inc. |
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April 30, 2024 |
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Gross margin |
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(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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Six Months Ended |
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April 30, |
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April 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(Unaudited) |
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(Unaudited) |
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Sale of homes |
$ |
686,929 |
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$ |
670,708 |
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$ |
1,260,565 |
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$ |
1,170,353 |
Cost of sales, excluding interest expense and land charges (1) |
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531,385 |
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530,759 |
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|
979,833 |
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|
921,722 |
Homebuilding gross margin, before cost of sales interest expense and land charges (2) |
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155,544 |
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|
139,949 |
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|
280,732 |
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|
248,631 |
Cost of sales interest expense, excluding land sales interest expense |
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21,543 |
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|
20,521 |
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41,441 |
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|
35,522 |
Homebuilding gross margin, after cost of sales interest expense, before land charges (2) |
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134,001 |
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|
119,428 |
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239,291 |
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213,109 |
Land charges |
|
237 |
|
|
137 |
|
|
539 |
|
|
614 |
Homebuilding gross margin |
$ |
133,764 |
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$ |
119,291 |
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$ |
238,752 |
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$ |
212,495 |
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Homebuilding gross margin percentage |
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19.5% |
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17.8% |
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18.9% |
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|
18.1% |
Homebuilding gross margin percentage, before cost of sales interest expense and land charges (2) |
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22.6% |
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20.9% |
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22.3% |
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|
21.2% |
Homebuilding gross margin percentage, after cost of sales interest expense, before land charges (2) |
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19.5% |
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17.8% |
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19.0% |
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18.2% |
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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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Six Months Ended |
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April 30, |
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April 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(Unaudited) |
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(Unaudited) |
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Land and lot sales |
$ |
213 |
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$ |
15,284 |
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$ |
1,553 |
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$ |
15,613 |
Cost of sales, excluding interest (1) |
|
117 |
|
|
9,863 |
|
|
882 |
|
|
9,940 |
Land and lot sales gross margin, excluding interest and land charges |
|
96 |
|
|
5,421 |
|
|
671 |
|
|
5,673 |
Land and lot sales interest expense |
|
- |
|
|
904 |
|
|
- |
|
|
925 |
Land and lot sales gross margin, including interest |
$ |
96 |
|
$ |
4,517 |
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$ |
671 |
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$ |
4,748 |
(1) Does not include cost associated with walking away from land options or inventory impairment losses which are recorded as Inventory impairment loss and land option write-offs in the Condensed Consolidated Statements of Operations.
(2) Homebuilding gross margin, before cost of sales interest expense and land charges, and homebuilding gross margin percentage, before cost of sales interest expense and land charges, are non-GAAP financial measures. The most directly comparable GAAP financial measures are homebuilding gross margin and homebuilding gross margin percentage, respectively.
Hovnanian Enterprises, Inc. |
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April 30, 2024 |
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Reconciliation of adjusted EBITDA to net income |
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(In thousands) |
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Three Months Ended |
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Six Months Ended |
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April 30, |
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April 30, |
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|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
(Unaudited) |
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(Unaudited) |
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Net income |
$ |
50,836 |
|
$ |
34,146 |
|
$ |
74,740 |
|
$ |
52,862 |
Income tax provision |
|
18,556 |
|
|
11,977 |
|
|
27,215 |
|
|
11,308 |
Interest expense |
|
30,512 |
|
|
35,926 |
|
|
60,861 |
|
|
66,041 |
EBIT (1) |
|
99,904 |
|
|
82,049 |
|
|
162,816 |
|
|
130,211 |
Depreciation and amortization |
|
2,014 |
|
|
4,514 |
|
|
3,612 |
|
|
5,924 |
EBITDA (2) |
|
101,918 |
|
|
86,563 |
|
|
166,428 |
|
|
136,135 |
Inventory impairments and land option write-offs |
|
237 |
|
|
137 |
|
|
539 |
|
|
614 |
Gain on extinguishment of debt, net |
|
- |
|
|
- |
|
|
(1,371) |
|
|
- |
Adjusted EBITDA (3) |
$ |
102,155 |
|
$ |
86,700 |
|
$ |
165,596 |
|
$ |
136,749 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest incurred |
$ |
34,530 |
|
$ |
35,122 |
|
$ |
66,491 |
|
$ |
69,448 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA to interest incurred |
|
2.96 |
|
|
2.47 |
|
|
2.49 |
|
|
1.97 |
Hovnanian Enterprises, Inc. |
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April 30, 2024 |
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Interest incurred, expensed and capitalized |
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(In thousands) |
|||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
April 30, |
|
April 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
(Unaudited) |
|
(Unaudited) |
||||||||
Interest capitalized at beginning of period |
$ |
53,672 |
|
$ |
60,795 |
|
$ |
52,060 |
|
$ |
59,600 |
Plus: interest incurred |
|
34,530 |
|
|
35,122 |
|
|
66,491 |
|
|
69,448 |
Less: interest expensed |
|
(30,512) |
|
|
(35,926) |
|
|
(60,861) |
|
|
(66,041) |
Less: interest contributed to unconsolidated joint venture (1) |
|
(5,468) |
|
|
- |
|
|
(5,468) |
|
|
(3,016) |
Plus: interest acquired from unconsolidated joint venture (2) |
|
- |
|
|
283 |
|
|
- |
|
|
283 |
Interest capitalized at end of period (3) |
$ |
52,222 |
|
$ |
60,274 |
|
$ |
52,222 |
|
$ |
60,274 |
(2) Represents capitalized interest which was included as part of the assets purchased from a joint venture the company closed out during the six months ended April 30, 2023. There was no impact to the Condensed Consolidated Statement of Operations as a result of this transaction.
(3) Capitalized interest amounts are shown gross before allocating any portion of impairments to capitalized interest.
Hovnanian Enterprises, Inc. |
|||||||||||
April 30, 2024 |
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Calculation of Consolidated Adjusted EBIT ROI |
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|
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|
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|
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|
|
TTM |
|
|
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For the quarter ended |
|
|
ended |
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(Dollars in thousands) |
|
|
7/31/2023 |
|
10/31/2023 |
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1/31/2024 |
|
4/30/2024 |
|
4/30/2024 |
Consolidated EBIT |
|
|
$103,164 |
|
$157,478 |
|
$62,912 |
|
$99,904 |
|
$423,458 |
Impairments and walk away |
|
|
$308 |
|
$614 |
|
$302 |
|
$237 |
|
$1,461 |
Loss (gain) on extinguishment of debt |
|
$4,082 |
|
$21,556 |
|
$(1,371) |
|
$0 |
|
$24,267 |
|
Adjusted EBIT |
|
|
$107,554 |
|
$179,648 |
|
$61,843 |
|
$100,141 |
|
$449,186 |
|
As of |
|
|
||||||||
|
4/30/2023 |
|
7/31/2023 |
|
10/31/2023 |
|
1/31/2024 |
|
4/30/2024 |
|
|
Total inventories |
$1,484,992 |
|
$1,411,260 |
|
$1,349,186 |
|
$1,463,558 |
|
$1,417,058 |
|
|
Less liabilities from inventory not owned, net of debt issuance costs |
200,299 |
|
145,979 |
|
124,254 |
|
114,658 |
|
86,618 |
|
|
Less capitalized interest |
60,274 |
|
55,274 |
|
52,060 |
|
53,672 |
|
52,222 |
|
|
Plus investments in and advances to unconsolidated joint ventures |
85,820 |
|
85,260 |
|
97,886 |
|
110,592 |
|
150,674 |
|
Five Quarter |
Goodwill |
- |
|
- |
|
- |
|
- |
|
- |
|
Average |
Inventories less consolidated inventory not owned and capitalized interest plus liabilities from inventory not owned |
$1,310,239 |
|
$1,295,267 |
|
$1,270,758 |
|
$1,405,820 |
|
$1,428,892 |
|
$1,342,195 |
Consolidated Adjusted EBIT ROI |
|
|
|
|
|
|
|
|
|
33.5% |
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
|
April 30, |
|
|
October 31, |
|
||
|
2024 |
|
|
2023 |
|
||
|
|
(Unaudited) |
|
|
|
(1) |
|
ASSETS |
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
181,966 |
|
|
$ |
434,119 |
|
Restricted cash and cash equivalents |
|
8,370 |
|
|
|
8,431 |
|
Inventories: |
|
|
|
|
|
|
|
Sold and unsold homes and lots under development |
|
1,135,232 |
|
|
|
998,841 |
|
Land and land options held for future development or sale |
|
138,641 |
|
|
|
125,587 |
|
Consolidated inventory not owned |
|
143,185 |
|
|
|
224,758 |
|
Total inventories |
|
1,417,058 |
|
|
|
1,349,186 |
|
Investments in and advances to unconsolidated joint ventures |
|
150,674 |
|
|
|
97,886 |
|
Receivables, deposits and notes, net |
|
24,975 |
|
|
|
27,982 |
|
Property and equipment, net |
|
39,593 |
|
|
|
33,946 |
|
Prepaid expenses and other assets |
|
72,747 |
|
|
|
69,886 |
|
Total homebuilding |
|
1,895,383 |
|
|
|
2,021,436 |
|
|
|
|
|
|
|
|
|
Financial services |
|
142,559 |
|
|
|
168,671 |
|
|
|
|
|
|
|
|
|
Deferred tax assets, net |
|
279,704 |
|
|
|
302,833 |
|
Total assets |
$ |
2,317,646 |
|
|
$ |
2,492,940 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
Nonrecourse mortgages secured by inventory, net of debt issuance costs |
$ |
85,557 |
|
|
$ |
91,539 |
|
Accounts payable and other liabilities |
|
379,367 |
|
|
|
415,480 |
|
Customers’ deposits |
|
45,619 |
|
|
|
51,419 |
|
Liabilities from inventory not owned, net of debt issuance costs |
|
86,618 |
|
|
|
124,254 |
|
Senior notes and credit facilities (net of discounts, premiums and debt issuance costs) |
|
932,957 |
|
|
|
1,051,491 |
|
Accrued interest |
|
18,220 |
|
|
|
26,926 |
|
Total homebuilding |
|
1,548,338 |
|
|
|
1,761,109 |
|
|
|
|
|
|
|
|
|
Financial services |
|
122,262 |
|
|
|
148,181 |
|
|
|
|
|
|
|
|
|
Income taxes payable |
|
- |
|
|
|
1,861 |
|
Total liabilities |
|
1,670,600 |
|
|
|
1,911,151 |
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
Hovnanian Enterprises, Inc. stockholders' equity: |
|
|
|
|
|
|
|
Preferred stock, $0.01 par value - authorized 100,000 shares; issued and outstanding 5,600 shares with a liquidation preference of $140,000 at April 30, 2024 and October 31, 2023 |
|
135,299 |
|
|
|
135,299 |
|
Common stock, Class A, $0.01 par value - authorized 16,000,000 shares; issued 6,288,200 shares at April 30, 2024 and 6,247,308 shares at October 31, 2023 |
|
63 |
|
|
|
62 |
|
Common stock, Class B, $0.01 par value (convertible to Class A at time of sale) - authorized 2,400,000 shares; issued 736,593 shares at April 30, 2024 and 776,750 shares at October 31, 2023 |
|
7 |
|
|
|
8 |
|
Paid in capital - common stock |
|
747,001 |
|
|
|
735,946 |
|
Accumulated deficit |
|
(87,795 |
) |
|
|
(157,197 |
) |
Treasury stock - at cost – 1,007,426 shares of Class A common stock at April 30, 2024 and 901,379 shares at October 31, 2023; 27,669 shares of Class B common stock at April 30, 2024 and October 31, 2023 |
|
(147,529 |
) |
|
|
(132,382 |
) |
Total Hovnanian Enterprises, Inc. stockholders’ equity |
|
647,046 |
|
|
|
581,736 |
|
Noncontrolling interest in consolidated joint ventures |
|
- |
|
|
|
53 |
|
Total equity |
|
647,046 |
|
|
|
581,789 |
|
Total liabilities and equity |
$ |
2,317,646 |
|
|
$ |
2,492,940 |
|
(1) Derived from the audited balance sheet as of October 31, 2023
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
|
Three Months Ended April 30, |
|
Six Months Ended April 30, |
|
|||||||||||
|
2024 |
|
|
2023 |
|
2024 |
|
|
2023 |
|
|||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale of homes |
$ |
686,929 |
|
|
$ |
670,708 |
|
|
$ |
1,260,565 |
|
|
$ |
1,170,353 |
|
Land sales and other revenues |
|
4,284 |
|
|
|
18,750 |
|
|
|
9,576 |
|
|
|
22,307 |
|
Total homebuilding |
|
691,213 |
|
|
|
689,458 |
|
|
|
1,270,141 |
|
|
|
1,192,660 |
|
Financial services |
|
17,167 |
|
|
|
14,203 |
|
|
|
32,435 |
|
|
|
26,367 |
|
Total revenues |
|
708,380 |
|
|
|
703,661 |
|
|
|
1,302,576 |
|
|
|
1,219,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales, excluding interest |
|
531,502 |
|
|
|
540,622 |
|
|
|
980,715 |
|
|
|
931,662 |
|
Cost of sales interest |
|
21,543 |
|
|
|
21,425 |
|
|
|
41,441 |
|
|
|
36,447 |
|
Inventory impairments and land option write-offs |
|
237 |
|
|
|
137 |
|
|
|
539 |
|
|
|
614 |
|
Total cost of sales |
|
553,282 |
|
|
|
562,184 |
|
|
|
1,022,695 |
|
|
|
968,723 |
|
Selling, general and administrative |
|
46,489 |
|
|
|
50,456 |
|
|
|
95,426 |
|
|
|
98,374 |
|
Total homebuilding expenses |
|
599,771 |
|
|
|
612,640 |
|
|
|
1,118,121 |
|
|
|
1,067,097 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial services |
|
12,023 |
|
|
|
10,152 |
|
|
|
23,494 |
|
|
|
19,205 |
|
Corporate general and administrative |
|
32,517 |
|
|
|
25,079 |
|
|
|
69,650 |
|
|
|
50,569 |
|
Other interest |
|
8,969 |
|
|
|
14,501 |
|
|
|
19,420 |
|
|
|
29,594 |
|
Other (income) expenses, net |
|
(3,128 |
) |
|
|
574 |
|
|
|
(2,577 |
) |
|
|
960 |
|
Total expenses |
|
650,152 |
|
|
|
662,946 |
|
|
|
1,228,108 |
|
|
|
1,167,425 |
|
Gain on extinguishment of debt, net |
|
- |
|
|
|
- |
|
|
|
1,371 |
|
|
|
- |
|
Income from unconsolidated joint ventures |
|
11,164 |
|
|
|
5,408 |
|
|
|
26,116 |
|
|
|
12,568 |
|
Income before income taxes |
|
69,392 |
|
|
|
46,123 |
|
|
|
101,955 |
|
|
|
64,170 |
|
State and federal income tax provision: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State |
|
5,231 |
|
|
|
1,083 |
|
|
|
7,437 |
|
|
|
3,294 |
|
Federal |
|
13,325 |
|
|
|
10,894 |
|
|
|
19,778 |
|
|
|
8,014 |
|
Total income taxes |
|
18,556 |
|
|
|
11,977 |
|
|
|
27,215 |
|
|
|
11,308 |
|
Net income |
|
50,836 |
|
|
|
34,146 |
|
|
|
74,740 |
|
|
|
52,862 |
|
Less: preferred stock dividends |
|
2,669 |
|
|
|
2,669 |
|
|
|
5,338 |
|
|
|
5,338 |
|
Net income available to common stockholders |
$ |
48,167 |
|
|
$ |
31,477 |
|
|
$ |
69,402 |
|
|
$ |
47,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share |
$ |
7.12 |
|
|
$ |
4.68 |
|
|
$ |
10.22 |
|
|
$ |
7.05 |
|
Weighted-average number of common shares outstanding |
|
6,457 |
|
|
|
6,166 |
|
|
|
6,477 |
|
|
|
6,176 |
|
Assuming dilution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share |
$ |
6.66 |
|
|
$ |
4.47 |
|
|
$ |
9.57 |
|
|
$ |
6.74 |
|
Weighted-average number of common shares outstanding |
|
6,902 |
|
|
|
6,462 |
|
|
|
6,920 |
|
|
|
6,463 |
|
HOVNANIAN ENTERPRISES, INC. |
||||||||||||||||
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) |
||||||||||||||||
(SEGMENT DATA EXCLUDES UNCONSOLIDATED JOINT VENTURES) |
||||||||||||||||
|
||||||||||||||||
|
|
Contracts (1) |
Deliveries |
Contract |
||||||||||||
|
|
Three Months Ended |
Three Months Ended |
Backlog |
||||||||||||
|
|
April 30, |
April 30, |
April 30, |
||||||||||||
|
|
2024 |
2023 |
% Change |
2024 |
2023 |
% Change |
2024 |
2023 |
% Change |
||||||
Northeast (2) (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(DE, MD, NJ, OH, PA, VA, WV) |
Home |
|
549 |
|
413 |
32.9% |
|
331 |
|
358 |
(7.5)% |
|
800 |
|
875 |
(8.6)% |
|
Dollars |
$ |
326,975 |
$ |
260,320 |
25.6% |
$ |
197,708 |
$ |
211,535 |
(6.5)% |
$ |
538,053 |
$ |
513,574 |
4.8% |
|
Avg. Price |
$ |
595,583 |
$ |
630,315 |
(5.5)% |
$ |
597,305 |
$ |
590,880 |
1.1% |
$ |
672,566 |
$ |
586,942 |
14.6% |
Southeast (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(FL, GA, SC) |
Home |
|
164 |
|
275 |
(40.4)% |
|
246 |
|
174 |
41.4% |
|
435 |
|
626 |
(30.5)% |
|
Dollars |
$ |
74,061 |
$ |
132,954 |
(44.3)% |
$ |
128,369 |
$ |
100,905 |
27.2% |
$ |
202,343 |
$ |
351,392 |
(42.4)% |
|
Avg. Price |
$ |
451,591 |
$ |
483,469 |
(6.6)% |
$ |
521,825 |
$ |
579,914 |
(10.0)% |
$ |
465,156 |
$ |
561,329 |
(17.1)% |
West |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(AZ, CA, TX) |
Home |
|
799 |
|
789 |
1.3% |
|
706 |
|
693 |
1.9% |
|
783 |
|
817 |
(4.2)% |
|
Dollars |
$ |
384,774 |
$ |
392,418 |
(1.9)% |
$ |
360,852 |
$ |
358,268 |
0.7% |
$ |
389,094 |
$ |
459,819 |
(15.4)% |
|
Avg. Price |
$ |
481,569 |
$ |
497,361 |
(3.2)% |
$ |
511,122 |
$ |
516,981 |
(1.1)% |
$ |
496,927 |
$ |
562,814 |
(11.7)% |
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
1,512 |
|
1,477 |
2.4% |
|
1,283 |
|
1,225 |
4.7% |
|
2,018 |
|
2,318 |
(12.9)% |
|
Dollars |
$ |
785,810 |
$ |
785,692 |
0.0% |
$ |
686,929 |
$ |
670,708 |
2.4% |
$ |
1,129,490 |
$ |
1,324,785 |
(14.7)% |
|
Avg. Price |
$ |
519,716 |
$ |
531,951 |
(2.3)% |
$ |
535,408 |
$ |
547,517 |
(2.2)% |
$ |
559,708 |
$ |
571,521 |
(2.1)% |
Unconsolidated Joint Ventures (2) (3) (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
249 |
|
137 |
81.8% |
|
177 |
|
121 |
46.3% |
|
528 |
|
295 |
79.0% |
|
Dollars |
$ |
175,388 |
$ |
91,063 |
92.6% |
$ |
119,011 |
$ |
80,677 |
47.5% |
$ |
375,907 |
$ |
213,533 |
76.0% |
|
Avg. Price |
$ |
704,369 |
$ |
664,693 |
6.0% |
$ |
672,379 |
$ |
666,752 |
0.8% |
$ |
711,945 |
$ |
723,841 |
(1.6)% |
Grand Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
1,761 |
|
1,614 |
9.1% |
|
1,460 |
|
1,346 |
8.5% |
|
2,546 |
|
2,613 |
(2.6)% |
|
Dollars |
$ |
961,198 |
|
876,755 |
9.6% |
$ |
805,940 |
$ |
751,385 |
7.3% |
$ |
1,505,397 |
$ |
1,538,318 |
(2.1)% |
|
Avg. Price |
$ |
545,825 |
|
543,219 |
0.5% |
$ |
552,014 |
$ |
558,236 |
(1.1)% |
$ |
591,279 |
$ |
588,717 |
0.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
30 |
|
1 |
2,900.0% |
|
5 |
|
0 |
0.0% |
|
105 |
|
2,223 |
(95.3)% |
|
Dollars |
$ |
7,133 |
|
157 |
4,443.3% |
$ |
1,238 |
$ |
0 |
0.0% |
$ |
19,853 |
$ |
348,976 |
(94.3)% |
|
Avg. Price |
$ |
237,767 |
|
157,000 |
51.4% |
$ |
247,600 |
$ |
0 |
0.0% |
$ |
189,076 |
$ |
156,984 |
20.4% |
DELIVERIES INCLUDE EXTRAS |
||||||||||||||||
Notes: |
||||||||||||||||
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts. (2) Reflects the reclassification of 38 homes and $32.3 million of contract backlog as of April 30, 2023 from the unconsolidated joint ventures to the consolidated Northeast segment. This is related to the assets and liabilities acquired from a joint venture the company closed out during the three months ended April 30, 2023. (3) Reflects the reclassification of 86 homes and $70.1 million and 13 homes and $10.6 million of contract backlog as of April 30, 2024 from the consolidated Northeast and Southeast segments, respectively, to unconsolidated joint ventures. This is related to the assets and liabilities contributed to a joint venture the company entered into during the three months ended April 30, 2024. (4) Represents home deliveries, home revenues and average prices for our unconsolidated homebuilding joint ventures for the period. We provide this data as a supplement to our consolidated results as an indicator of the volume managed in our unconsolidated homebuilding joint ventures. Our proportionate share of the income or loss of unconsolidated homebuilding and land development joint ventures is reflected as a separate line item in our consolidated financial statements under “Income from unconsolidated joint ventures”. |
HOVNANIAN ENTERPRISES, INC. |
||||||||||||||||
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) |
||||||||||||||||
(SEGMENT DATA EXCLUDES UNCONSOLIDATED JOINT VENTURES) |
||||||||||||||||
|
|
Contracts (1) |
Deliveries |
Contract |
||||||||||||
|
|
Six Months Ended |
Six Months Ending |
Backlog |
||||||||||||
|
|
April 30, |
April 30, |
April 30, |
||||||||||||
|
|
2024 |
2023 |
% Change |
2024 |
2023 |
% Change |
2024 |
2023 |
% Change |
||||||
Northeast (2) (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(DE, MD, NJ, OH, PA, VA, WV) |
Home |
|
932 |
|
724 |
28.7% |
|
663 |
|
729 |
(9.1)% |
|
800 |
|
875 |
(8.6)% |
|
Dollars |
$ |
575,728 |
$ |
446,170 |
29.0% |
$ |
387,697 |
$ |
422,409 |
(8.2)% |
$ |
538,053 |
$ |
513,574 |
4.8% |
|
Avg. Price |
$ |
617,734 |
$ |
616,257 |
0.2% |
$ |
584,762 |
$ |
579,436 |
0.9% |
$ |
672,566 |
$ |
586,942 |
14.6% |
Southeast (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(FL, GA, SC) |
Home |
|
274 |
|
439 |
(37.6)% |
|
441 |
|
315 |
40.0% |
|
435 |
|
626 |
(30.5)% |
|
Dollars |
$ |
142,732 |
$ |
215,145 |
(33.7)% |
$ |
233,997 |
$ |
174,641 |
34.0% |
$ |
202,343 |
$ |
351,392 |
(42.4)% |
|
Avg. Price |
$ |
520,920 |
$ |
490,080 |
6.3% |
$ |
530,605 |
$ |
554,416 |
(4.3)% |
$ |
465,156 |
$ |
561,329 |
(17.1)% |
West |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(AZ, CA, TX) |
Home |
|
1,433 |
|
1,102 |
30.0% |
|
1,242 |
|
1,119 |
11.0% |
|
783 |
|
817 |
(4.2)% |
|
Dollars |
$ |
691,702 |
$ |
539,505 |
28.2% |
$ |
638,871 |
$ |
573,303 |
11.4% |
$ |
389,094 |
$ |
459,819 |
(15.4)% |
|
Avg. Price |
$ |
482,695 |
$ |
489,569 |
(1.4)% |
$ |
514,389 |
$ |
512,335 |
0.4% |
$ |
496,927 |
$ |
562,814 |
(11.7)% |
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
2,639 |
|
2,265 |
16.5% |
|
2,346 |
|
2,163 |
8.5% |
|
2,018 |
|
2,318 |
(12.9)% |
|
Dollars |
$ |
1,410,162 |
$ |
1,200,820 |
17.4% |
$ |
1,260,565 |
$ |
1,170,353 |
7.7% |
$ |
1,129,490 |
$ |
1,324,785 |
(14.7)% |
|
Avg. Price |
$ |
534,355 |
$ |
530,163 |
0.8% |
$ |
537,325 |
$ |
541,079 |
(0.7)% |
$ |
559,708 |
$ |
571,521 |
(2.1)% |
Unconsolidated Joint Ventures (2) (3) (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
401 |
|
242 |
65.7% |
|
344 |
|
228 |
50.9% |
|
528 |
|
295 |
79.0% |
|
Dollars |
$ |
275,493 |
$ |
162,744 |
69.3% |
$ |
235,946 |
$ |
159,347 |
48.1% |
$ |
375,907 |
$ |
213,533 |
76.0% |
|
Avg. Price |
$ |
687,015 |
$ |
672,496 |
2.2% |
$ |
685,890 |
$ |
698,890 |
(1.9)% |
$ |
711,945 |
$ |
723,841 |
(1.6)% |
Grand Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
3,040 |
|
2,507 |
21.3% |
|
2,690 |
|
2,391 |
12.5% |
|
2,546 |
|
2,613 |
(2.6)% |
|
Dollars |
$ |
1,685,655 |
$ |
1,363,564 |
23.6% |
$ |
1,496,511 |
$ |
1,329,700 |
12.5% |
$ |
1,505,397 |
$ |
1,538,318 |
(2.1)% |
|
Avg. Price |
$ |
554,492 |
$ |
543,903 |
1.9% |
$ |
556,324 |
$ |
556,127 |
0.0% |
$ |
591,279 |
$ |
588,717 |
0.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
99 |
|
10 |
890.0% |
|
44 |
|
0 |
0.0% |
|
105 |
|
2,223 |
(95.3)% |
|
Dollars |
$ |
21,241 |
$ |
1,555 |
1,266.0% |
$ |
9,512 |
$ |
0 |
0.0% |
$ |
19,853 |
$ |
348,976 |
(94.3)% |
|
Avg. Price |
$ |
214,556 |
$ |
155,500 |
38.0% |
$ |
216,182 |
$ |
0 |
0.0% |
$ |
189,076 |
$ |
156,984 |
20.4% |
DELIVERIES INCLUDE EXTRAS |
|||||||||||||||||
Notes: |
|||||||||||||||||
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts. (2) Reflects the reclassification of 8 homes and $6.6 million of contract backlog as of April 30, 2023 from the consolidated Northeast segment to unconsolidated joint ventures. This is related to the assets and liabilities contributed to a joint venture the company entered into during the three months ended January 31, 2023. Also reflects the reclassification of 38 homes and $32.3 million of contract backlog as of April 30, 2023 from the unconsolidated joint ventures to the consolidated Northeast segment. This is related to the assets and liabilities acquired from a joint venture the company closed out during the three months ended April 30, 2023. (3) Reflects the reclassification of 86 homes and $70.1 million and 13 homes and $10.6 million of contract backlog as of April 30, 2024 from the consolidated Northeast and Southeast segments, respectively, to unconsolidated joint ventures. This is related to the assets and liabilities contributed to a joint venture the company entered into during the three months ended April 30, 2024. (4) Represents home deliveries, home revenues and average prices for our unconsolidated homebuilding joint ventures for the period. We provide this data as a supplement to our consolidated results as an indicator of the volume managed in our unconsolidated homebuilding joint ventures. Our proportionate share of the income or loss of unconsolidated homebuilding and land development joint ventures is reflected as a separate line item in our consolidated financial statements under “Income from unconsolidated joint ventures”. |
HOVNANIAN ENTERPRISES, INC. |
||||||||||||||||
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) |
||||||||||||||||
(SEGMENT DATA UNCONSOLIDATED JOINT VENTURES ONLY) |
||||||||||||||||
|
|
Contracts (1) |
Deliveries |
Contract |
||||||||||||
|
|
Three Months Ended |
Three Months Ended |
Backlog |
||||||||||||
|
|
April 30, |
April 30, |
April 30, |
||||||||||||
|
|
2024 |
2023 |
% Change |
2024 |
2023 |
% Change |
2024 |
2023 |
% Change |
||||||
Northeast (2) (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unconsolidated Joint Ventures) |
Home |
|
156 |
|
49 |
218.4% |
|
90 |
|
61 |
47.5% |
|
292 |
|
115 |
153.9% |
(Excluding KSA JV) |
Dollars |
$ |
123,347 |
$ |
35,988 |
242.7% |
$ |
65,531 |
$ |
41,573 |
57.6% |
$ |
238,635 |
$ |
82,935 |
187.7% |
(DE, MD, NJ, OH, PA, VA, WV) |
Avg. Price |
$ |
790,686 |
$ |
734,449 |
7.7% |
$ |
728,122 |
$ |
681,525 |
6.8% |
$ |
817,243 |
$ |
721,174 |
13.3% |
Southeast (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unconsolidated Joint Ventures) |
Home |
|
60 |
|
73 |
(17.8)% |
|
69 |
|
49 |
40.8% |
|
195 |
|
161 |
21.1% |
(FL, GA, SC) |
Dollars |
$ |
35,503 |
$ |
46,755 |
(24.1)% |
$ |
44,243 |
$ |
33,050 |
33.9% |
$ |
117,650 |
$ |
119,901 |
(1.9)% |
|
Avg. Price |
$ |
591,717 |
$ |
640,479 |
(7.6)% |
$ |
641,203 |
$ |
674,490 |
(4.9)% |
$ |
603,333 |
$ |
744,727 |
(19.0)% |
West |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unconsolidated Joint Ventures) |
Home |
|
33 |
|
15 |
120.0% |
|
18 |
|
11 |
63.6% |
|
41 |
|
19 |
115.8% |
(AZ, CA, TX) |
Dollars |
$ |
16,538 |
$ |
8,320 |
98.8% |
$ |
9,237 |
$ |
6,054 |
52.6% |
$ |
19,622 |
$ |
10,697 |
83.4% |
|
Avg. Price |
$ |
501,152 |
$ |
554,667 |
(9.6)% |
$ |
513,167 |
$ |
550,364 |
(6.8)% |
$ |
478,585 |
$ |
563,000 |
(15.0)% |
Unconsolidated Joint Ventures (2) (3) (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Excluding KSA JV) |
Home |
|
249 |
|
137 |
81.8% |
|
177 |
|
121 |
46.3% |
|
528 |
|
295 |
79.0% |
|
Dollars |
$ |
175,388 |
$ |
91,063 |
92.6% |
$ |
119,011 |
$ |
80,677 |
47.5% |
$ |
375,907 |
$ |
213,533 |
76.0% |
|
Avg. Price |
$ |
704,369 |
$ |
664,693 |
6.0% |
$ |
672,379 |
$ |
666,752 |
0.8% |
$ |
711,945 |
$ |
723,841 |
(1.6)% |
|
||||||||||||||||
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
30 |
|
1 |
2,900.0% |
|
5 |
|
0 |
0.0% |
|
105 |
|
2,223 |
(95.3)% |
|
Dollars |
$ |
7,133 |
$ |
157 |
4,443.3% |
$ |
1,238 |
$ |
0 |
0.0% |
$ |
19,853 |
$ |
348,976 |
(94.3)% |
|
Avg. Price |
$ |
237,767 |
$ |
157,000 |
51.4% |
$ |
247,600 |
$ |
0 |
0.0% |
$ |
189,076 |
$ |
156,984 |
20.4% |
DELIVERIES INCLUDE EXTRAS |
|||||||||||||||||
Notes: |
|||||||||||||||||
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts. (2) Reflects the reclassification of 38 homes and $32.3 million of contract backlog as of April 30, 2023 from the unconsolidated joint ventures to the consolidated Northeast segment. This is related to the assets and liabilities acquired from a joint venture the company closed out during the three months ended April 30, 2023. (3) Reflects the reclassification of 86 homes and $70.1 million and 13 homes and $10.6 million of contract backlog as of April 30, 2024 from the consolidated Northeast and Southeast segments, respectively, to unconsolidated joint ventures. This is related to the assets and liabilities contributed to a joint venture the company entered into during the three months ended April 30, 2024. (4) Represents home deliveries, home revenues and average prices for our unconsolidated homebuilding joint ventures for the period. We provide this data as a supplement to our consolidated results as an indicator of the volume managed in our unconsolidated homebuilding joint ventures. Our proportionate share of the income or loss of unconsolidated homebuilding and land development joint ventures is reflected as a separate line item in our consolidated financial statements under “Income from unconsolidated joint ventures”. |
HOVNANIAN ENTERPRISES, INC. |
||||||||||||||||
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) |
||||||||||||||||
(SEGMENT DATA UNCONSOLIDATED JOINT VENTURES ONLY) |
||||||||||||||||
|
|
Contracts (1) |
Deliveries |
Contract |
||||||||||||
|
|
Six Months Ended |
Six Months Ended |
Backlog |
||||||||||||
|
|
April 30, |
April 30, |
April 30, |
||||||||||||
|
|
2024 |
2023 |
% Change |
2024 |
2023 |
% Change |
2024 |
2023 |
% Change |
||||||
Northeast (2) (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unconsolidated Joint Ventures) |
Home |
|
227 |
|
99 |
129.3% |
|
181 |
|
126 |
43.7% |
|
292 |
|
115 |
153.9% |
(Excluding KSA JV) |
Dollars |
$ |
180,703 |
$ |
75,921 |
138.0% |
$ |
133,707 |
$ |
92,349 |
44.8% |
$ |
238,635 |
$ |
82,935 |
187.7% |
(DE, MD, NJ, OH, PA, VA, WV) |
Avg. Price |
$ |
796,048 |
$ |
766,879 |
3.8% |
$ |
738,713 |
$ |
732,929 |
0.8% |
$ |
817,243 |
$ |
721,174 |
13.3% |
Southeast (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unconsolidated Joint Ventures) |
Home |
|
115 |
|
112 |
2.7% |
|
119 |
|
80 |
48.8% |
|
195 |
|
161 |
21.1% |
(FL, GA, SC) |
Dollars |
$ |
66,671 |
$ |
69,720 |
(4.4)% |
$ |
79,521 |
$ |
55,247 |
43.9% |
$ |
117,650 |
$ |
119,901 |
(1.9)% |
|
Avg. Price |
$ |
579,748 |
$ |
622,500 |
(6.9)% |
$ |
668,244 |
$ |
690,588 |
(3.2)% |
$ |
603,333 |
$ |
744,727 |
(19.0)% |
West |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unconsolidated Joint Ventures) |
Home |
|
59 |
|
31 |
90.3% |
|
44 |
|
22 |
100.0% |
|
41 |
|
19 |
115.8% |
(AZ, CA, TX) |
Dollars |
$ |
28,119 |
$ |
17,103 |
64.4% |
$ |
22,718 |
$ |
11,751 |
93.3% |
$ |
19,622 |
$ |
10,697 |
83.4% |
|
Avg. Price |
$ |
476,593 |
$ |
551,710 |
(13.6)% |
$ |
516,318 |
$ |
534,136 |
(3.3)% |
$ |
478,585 |
$ |
563,000 |
(15.0)% |
Unconsolidated Joint Ventures (2) (3) (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Excluding KSA JV) |
Home |
|
401 |
|
242 |
65.7% |
|
344 |
|
228 |
50.9% |
|
528 |
|
295 |
79.0% |
|
Dollars |
$ |
275,493 |
$ |
162,744 |
69.3% |
$ |
235,946 |
$ |
159,347 |
48.1% |
$ |
375,907 |
$ |
213,533 |
76.0% |
|
Avg. Price |
$ |
687,015 |
$ |
672,496 |
2.2% |
$ |
685,890 |
$ |
698,890 |
(1.9)% |
$ |
711,945 |
$ |
723,841 |
(1.6)% |
|
||||||||||||||||
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home |
|
99 |
|
10 |
890.0% |
|
44 |
|
0 |
0.0% |
|
105 |
|
2,223 |
(95.3)% |
|
Dollars |
$ |
21,241 |
$ |
1,555 |
1,266.0% |
$ |
9,512 |
$ |
0 |
0.0% |
$ |
19,853 |
$ |
348,976 |
(94.3)% |
|
Avg. Price |
$ |
214,556 |
$ |
155,500 |
38.0% |
$ |
216,182 |
$ |
0 |
0.0% |
$ |
189,076 |
$ |
156,984 |
20.4% |
DELIVERIES INCLUDE EXTRAS |
||||||||||||||||
Notes: |
||||||||||||||||
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts. (2) Reflects the reclassification of 8 homes and $6.6 million of contract backlog as of April 30, 2023 from the consolidated Northeast segment to unconsolidated joint ventures. This is related to the assets and liabilities contributed to a joint venture the company entered into during the three months ended January 31, 2023. Also reflects the reclassification of 38 homes and $32.3 million of contract backlog as of April 30, 2023 from the unconsolidated joint ventures to the consolidated Northeast segment. This is related to the assets and liabilities acquired from a joint venture the company closed out during the three months ended April 30, 2023. (3) Reflects the reclassification of 86 homes and $70.1 million and 13 homes and $10.6 million of contract backlog as of April 30, 2024 from the consolidated Northeast and Southeast segments, respectively, to unconsolidated joint ventures. This is related to the assets and liabilities contributed to a joint venture the company entered into during the three months ended April 30, 2024. (4) Represents home deliveries, home revenues and average prices for our unconsolidated homebuilding joint ventures for the period. We provide this data as a supplement to our consolidated results as an indicator of the volume managed in our unconsolidated homebuilding joint ventures. Our proportionate share of the income or loss of unconsolidated homebuilding and land development joint ventures is reflected as a separate line item in our consolidated financial statements under “Income from unconsolidated joint ventures”. |
14 |