Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national
homebuilder, reported results for its fiscal third quarter and
nine-month period ended July 31, 2021.
RESULTS FOR THE THREE-MONTH AND
NINE-MONTH PERIODS ENDED JULY 31, 2021:
- Total revenues increased 10.0% to
$690.7 million in the third quarter of fiscal 2021, compared with
$628.1 million in the same quarter of the prior year. For the nine
months ended July 31, 2021, total revenues increased 18.5% to $1.97
billion compared with $1.66 billion in the same period during the
prior fiscal year.
- Homebuilding gross margin
percentage, after cost of sales interest expense and land charges,
increased 560 basis points to 19.2% for the three months ended July
31, 2021 compared with 13.6% during the same period a year ago.
During the first nine months of fiscal 2021, homebuilding gross
margin percentage, after cost of sales interest expense and land
charges, was 18.3%, up 460 basis points, compared with 13.7% during
the same period last year.
- Homebuilding gross margin
percentage, before cost of sales interest expense and land charges,
increased 460 basis points to 22.1% during the fiscal 2021 third
quarter compared with 17.5% in last year’s third quarter. For the
nine months ended July 31, 2021, homebuilding gross margin
percentage, before cost of sales interest expense and land charges,
was 21.4%, up 370 basis points, compared with 17.7% in the same
period of the previous fiscal year.
- Total SG&A was $60.3 million,
or 8.7% of total revenues, in the fiscal 2021 third quarter
compared with $59.9 million, or 9.5% of total revenues, in the
previous year’s third quarter. During the first nine months of
fiscal 2021, total SG&A was $206.6 million, or 10.5% of total
revenues, compared with $176.2 million, or 10.6% of total revenues,
in the same period of the prior fiscal year.
- Total interest expense declined
21.5% to $38.4 million for the third quarter of fiscal 2021
compared with $48.9 million during the third quarter of fiscal
2020. For the nine months ended July 31, 2021, total interest
expense was $123.3 million compared with $137.5 million during the
same period last year.
- Income from unconsolidated joint
ventures was $5.0 million for the third quarter ended July 31, 2021
compared with $5.7 million in the fiscal 2020 third quarter. For
the first nine months of fiscal 2021, income from unconsolidated
joint ventures was $9.6 million compared with $13.4 million in the
same period a year ago.
- Income before income taxes for the
third quarter of fiscal 2021 was $61.8 million, up 281.1% or $45.6
million, compared with $16.2 million in the third quarter of the
prior fiscal year. For the first nine months of fiscal 2021, income
before income taxes increased 767.5% to $112.4 million compared
with $13.0 million during the same period of fiscal 2020.
- Net income was $47.7 million, or
$6.72 per diluted common share, for the three months ended July 31,
2021 compared with net income of $15.4 million, or $2.16 per
diluted common share, in the third quarter of the previous fiscal
year. For the first nine months of fiscal 2021, net income,
including the $468.6 million benefit from the valuation allowance
reduction, was $555.3 million, or $78.51 per diluted common share,
compared with $10.3 million, or $1.44 per diluted common share, in
the same period during fiscal 2020.
- EBITDA increased 52.7% to $101.5
million for the third quarter of fiscal 2021 compared with $66.5
million in the same quarter of the prior year. For the first nine
months of fiscal 2021, EBITDA was $239.8 million, a 55.4% increase,
compared with $154.3 million in the first nine months of fiscal
2020.
- Financial services income before
income taxes was $8.6 million for the third quarter of fiscal 2021
compared with $10.8 million in the third quarter of fiscal 2020.
For the first nine months of fiscal 2021, financial services income
before income taxes increased 40.6% to $28.1 million compared with
$20.0 million in the same period one year ago.
- Consolidated contracts per
community decreased 38.9% to 11.6 contracts per community for the
third quarter ended July 31, 2021 compared with the unprecedented
COVID-19 surge in home demand of 19.0 contracts per community in
last year’s third quarter. However, consolidated contracts per
community for the third quarter of fiscal 2021 were up slightly
compared to the more historically average pace of 11.0 contracts
per community in the fiscal 2019 third quarter. Contracts per
community, including domestic unconsolidated joint ventures(1),
decreased 35.4% to 11.5 for the third quarter of fiscal 2021
compared with 17.8 for the third quarter of fiscal 2020, but
increased compared to 10.6 for the fiscal 2019 third quarter.
- As a result of metering sales,
selling out of communities ahead of schedule, COVID-19 related
delays for new community openings and unprecedented demand after
the initial COVID-19 shutdown last year, consolidated contract
dollars decreased 31.0% in the third quarter of fiscal 2021 to
$609.1 million (1,211 homes) compared with $882.3 million (2,226
homes) in the same quarter last year. Contract dollars, including
domestic unconsolidated joint ventures, for the three months ended
July 31, 2021, decreased 27.6% to $716.2 million (1,376 homes)
compared with $989.2 million (2,415 homes) in the third quarter of
fiscal 2020.
- For the nine months ended July 31,
2021, consolidated contract dollars increased 12.2% to $2.23
billion (4,760 homes) compared with $1.99 billion (5,035 homes) in
the same period of the prior year. Contract dollars, including
domestic unconsolidated joint ventures, for the first nine months
of fiscal 2021 increased 11.6% to $2.55 billion (5,298 homes)
compared with $2.28 billion (5,549 homes) in the same period of
fiscal 2020.
- Due to consciously metering sales
in many of our communities in recent months and a difficult
comparison to a very strong August last year, consolidated
contracts per community for August 2021 decreased 43.9% to 3.7
compared with the unprecedented COVID demand surge of 6.6 for the
same month one year ago. That said, consolidated contracts per
community for August 2021 still represented an increase compared to
a more typical 3.2 for August 2019. The dollar value of August 2021
consolidated contracts decreased 36.3% to $203.1 million compared
with $318.8 million in August last year. The dollar value of August
2021 consolidated contracts represented an increase compared to
$166.7 million in August 2019.
- The dollar value of consolidated
contract backlog, as of July 31, 2021, increased 41.8% to $1.75
billion compared with $1.23 billion as of July 31, 2020. The dollar
value of contract backlog, including domestic unconsolidated joint
ventures, as of July 31, 2021, increased 43.8% to $1.99 billion
compared with $1.39 billion as of July 31, 2020.
- Consolidated deliveries decreased
3.5% to 1,498 homes in the fiscal 2021 third quarter compared with
1,553 homes in the previous year’s third quarter. For the fiscal
2021 third quarter, deliveries, including domestic unconsolidated
joint ventures, decreased 5.8% to 1,677 homes compared with 1,781
homes during the third quarter of fiscal 2020.
- For the first nine months of fiscal
2021, consolidated deliveries increased 9.4% to 4,501 homes
compared with 4,114 homes in the first nine months of the previous
year. For the first nine months of fiscal 2021, deliveries,
including domestic unconsolidated joint ventures, increased 5.9% to
4,954 homes compared with 4,679 homes during the same period of
fiscal 2021.
- The contract cancellation rate for
consolidated contracts was 16% for the third quarter ended July 31,
2021 compared with 18% in the fiscal 2020 third quarter. The
contract cancellation rate for contracts including domestic
unconsolidated joint ventures was 15% for the third quarter of
fiscal 2021 compared with 18% in the third quarter of the prior
year.
(1)When we refer to “Domestic
Unconsolidated Joint Ventures”, we are excluding results from our
single community unconsolidated joint venture in the Kingdom of
Saudi Arabia (KSA).
LIQUIDITY AND INVENTORY AS OF JULY 31,
2021:
- During the third quarter of fiscal
2021, land and land development spending was $177.6 million, an
increase of 9.2% compared with $162.6 million in last year’s third
quarter. For the first nine months of fiscal 2021, land and land
development spending was $531.2 million, an increase of 34.5%
compared with $394.9 million in the same period one year ago.
- After paying off in full with cash
on hand the remaining balance of $111 million of our 10.0% senior
secured notes due July 2022, the total liquidity at the end of the
third quarter of fiscal 2021 was $307.7 million, well above our
targeted liquidity range of $170 million to $245 million.
- On August 2, 2021, we paid off in
full with cash on hand the remaining $70 million principal amount
of our 10.5% senior secured notes due July 2024 at a purchase price
of 102.625% of the principal amount thereof plus accrued and unpaid
interest to, but excluding, the redemption date. Other than our
undrawn senior secured revolving credit facility, we do not have
any bond issuances maturing before the first quarter of fiscal
2026.
- In the third quarter of fiscal
2021, approximately 4,900 lots were put under option or acquired in
35 consolidated communities.
- As of July 31, 2021, the total
controlled consolidated lots increased 20.4% to 31,002 compared
with 25,748 lots at the end of the previous year’s third quarter.
Based on trailing twelve-month deliveries, the current position
equaled a 5.1 years’ supply.
FINANCIAL
GUIDANCE(2):
Financial guidance for both the fourth quarter
and full year for fiscal 2021 assumes no adverse changes in current
market conditions and excludes further impact to SG&A expenses
from phantom stock expense related solely to stock price movements
from the closing price of $104.39 at July 30, 2021. Every $4
increase or decrease in common stock price from the end of the
third quarter, results in an approximate $1 million increase or
decrease, respectively, of phantom stock expense.
- For the fourth quarter of fiscal
2021, total revenues are expected to be between $830 million and
$880 million, adjusted pretax income is expected to be between $60
million and $75 million and adjusted EBITDA is expected to be
between $100 million and $115 million.
- For all of fiscal 2021, we are
increasing our guidance. Total revenues are expected to be between
$2.80 billion and $2.85 billion, adjusted pretax income to be
between $175 million and $190 million and adjusted EBITDA to be
between $345 million and $360 million.
- On October 31, 2021, we expect our
community count, including domestic unconsolidated joint ventures,
to grow from 120 as of the end of our third quarter to roughly the
same level of 135 communities open at the end of the fourth quarter
last year. Community count is expected to continue to grow in
fiscal 2022.
(2)The Company
cannot provide a reconciliation between its non-GAAP projections
and the most directly comparable GAAP measures without unreasonable
efforts because it is unable to predict with reasonable certainty
the ultimate outcome of certain significant items required for the
reconciliation. These items include, but are not limited to,
land-related charges, inventory impairment loss and land option
write-offs and loss (gain) on extinguishment of debt. These items
are uncertain, depend on various factors and could have a material
impact on GAAP reported results.
COMMENTS FROM MANAGEMENT:
“Given the significant COVID-19 supply chain
disruptions and labor challenges our industry has been
experiencing, we are very pleased with our strong performance
during the third quarter of fiscal 2021. We exceeded our third
quarter guidance on almost every financial metric,” stated Ara K.
Hovnanian, Chairman of the Board, President and Chief Executive
Officer. “As expected, sales have slowed to a more historically
typical sales pace following our efforts to meter homes available
for sale and through significant home price increases. The average
price in our deliveries went from $390,000 in last year’s third
quarter, to $443,000 in this year’s third quarter. Our third
quarter average price for new contracts increased even further to
$503,000. Those efforts, combined with a slowdown in demand from
the white-hot sales pace we experienced last year, have allowed us
to better align starting home construction with our sales pace.
Last year’s COVID-19 sales frenzy has given way to a more rational
sales pace, which we believe is more sustainable.”
“On a positive note, lumber prices have begun to
decline substantially. We expect the recent decrease in lumber
costs to benefit gross margins on homes we are starting now for
future deliveries, including many of the homes that are currently
in backlog for 2022 deliveries. Due to a strong economy, positive
long-term demographic trends and our strong cash flow, we continue
to invest in land and are making strong progress on acquiring
additional land parcels which bodes well for future community count
growth. We believe that we are well positioned to take advantage of
these positive long-term trends. We continue to expect fiscal 2021
to be an outstanding year. As we look forward, we believe that
today’s more rational, healthy contract pace, which has higher home
prices and gross margins, along with an increase in community
count, should lead to further growth in both total revenues and
adjusted pretax income in fiscal 2022,” concluded Mr.
Hovnanian.
WEBCAST INFORMATION:
Hovnanian Enterprises will webcast its fiscal
2021 third quarter financial results conference call at 11:00 a.m.
E.T. on Thursday, September 9, 2021. The webcast can be accessed
live through the “Investor Relations” section of Hovnanian
Enterprises’ website at http://www.khov.com. For those who are not
available to listen to the live webcast, an archive of the
broadcast will be available under the “Past Events” section of the
Investor Relations page on the Hovnanian website at
http://www.khov.com. The archive will be available for 12
months.
ABOUT HOVNANIAN ENTERPRISES,
INC.:
Hovnanian Enterprises, Inc., founded in 1959 by
Kevork S. Hovnanian, is headquartered in Matawan, New Jersey and,
through its subsidiaries, is one of the nation’s largest
homebuilders with operations in Arizona, California, Delaware,
Florida, Georgia, Illinois, Maryland, New Jersey, Ohio,
Pennsylvania, South Carolina, Texas, Virginia, Washington, D.C. and
West Virginia. The Company’s homes are marketed and sold under the
trade name K. Hovnanian® Homes. Additionally, the Company’s
subsidiaries, as developers of K. Hovnanian’s® Four Seasons
communities, make the Company one of the nation’s largest builders
of active lifestyle communities.
Additional information on Hovnanian Enterprises,
Inc. can be accessed through the “Investor Relations” section of
the Hovnanian Enterprises’ website at http://www.khov.com. To be
added to Hovnanian's investor e-mail list, please send an e-mail to
IR@khov.com or sign up at http://www.khov.com.
NON-GAAP FINANCIAL
MEASURES:
Consolidated earnings before interest
expense and income taxes (“EBIT”) and before depreciation and
amortization (“EBITDA”) and before inventory impairment loss and
land option write-offs and loss (gain) 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. The reconciliation for
historical periods of EBIT, EBITDA and Adjusted EBITDA to net
income is presented in a table attached to this earnings
release.
Homebuilding gross margin, before cost
of sales interest expense and land charges, and homebuilding gross
margin percentage, before cost of sales interest expense and land
charges, are non-GAAP financial measures. The most directly
comparable GAAP financial measures are homebuilding gross margin
and homebuilding gross margin percentage, respectively. The
reconciliation for historical periods of homebuilding gross margin,
before cost of sales interest expense and land charges, and
homebuilding gross margin percentage, before cost of sales interest
expense and land charges, to homebuilding gross margin and
homebuilding gross margin percentage, respectively, is presented in
a table attached to this earnings release.
Adjusted pretax income, which is defined
as income before income taxes excluding land-related charges and
loss (gain) on extinguishment of debt is a non-GAAP financial
measure. The most directly comparable GAAP financial measure is
income before income taxes. The reconciliation for historical
periods of adjusted pretax income to income before income taxes is
presented in a table attached to this earnings
release.
Total liquidity is comprised of $172.7
million of cash and cash equivalents, $10.0 million of restricted
cash required to collateralize letters of credit and $125.0 million
availability under the senior secured revolving credit facility as
of July 31, 2021.
FORWARD-LOOKING STATEMENTS
All statements in this press release
that are not historical facts should be considered as
“Forward-Looking Statements” within the meaning of the “Safe
Harbor” provisions of the Private Securities Litigation Reform Act
of 1995. Such statements involve known and unknown risks,
uncertainties and other factors that may cause actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such
forward-looking statements include but are not limited to
statements related to the Company’s goals and expectations with
respect to its financial results for future financial periods.
Although we believe that our plans, intentions and expectations
reflected in, or suggested by, such forward-looking statements are
reasonable, we can give no assurance that such plans, intentions or
expectations will be achieved. By their nature, forward-looking
statements: (i) speak only as of the date they are made, (ii) are
not guarantees of future performance or results and (iii) are
subject to risks, uncertainties and assumptions that are difficult
to predict or quantify. Therefore, actual results could differ
materially and adversely from those forward-looking statements as a
result of a variety of factors. Such risks, uncertainties and other
factors include, but are not limited to, (1) the outbreak and
spread of COVID-19 and the measures that governments, agencies, law
enforcement and/or health authorities implement to address it; (2)
changes in general and local economic, industry and business
conditions and impacts of a significant homebuilding downturn; (3)
adverse weather and other environmental conditions and natural
disasters; (4) the seasonality of the Company’s business; (5) the
availability and cost of suitable land and improved lots and
sufficient liquidity to invest in such land and lots; (6) shortages
in, and price fluctuations of, raw materials and labor, including
due to changes in trade policies and the imposition of tariffs and
duties on homebuilding materials and products and related trade
disputes with, and retaliatory measures taken by, other countries;
(7) reliance on, and the performance of, subcontractors; (8)
regional and local economic factors, including dependency on
certain sectors of the economy, and employment levels affecting
home prices and sales activity in the markets where the Company
builds homes; (9) increases in cancellations of agreements of sale;
(10) fluctuations in interest rates and the availability of
mortgage financing; (11) changes in tax laws affecting the
after-tax costs of owning a home; (12) legal claims brought against
us and not resolved in our favor, such as product liability
litigation, warranty claims and claims made by mortgage investors;
(13) levels of competition; (14) utility shortages and outages or
rate fluctuations; (15) information technology failures and data
security breaches; (16) negative publicity; (17) high leverage and
restrictions on the Company’s operations and activities imposed by
the agreements governing the Company’s outstanding indebtedness;
(18) availability and terms of financing to the Company; (19) the
Company’s sources of liquidity; (20) changes in credit ratings;
(21) government regulation, including regulations concerning
development of land, the home building, sales and customer
financing processes, tax laws and the environment; (22) operations
through unconsolidated joint ventures with third parties; (23)
significant influence of the Company’s controlling stockholders;
(24) availability of net operating loss carryforwards; (25) loss of
key management personnel or failure to attract qualified personnel;
and (26) certain risks, uncertainties and other factors described
in detail in the Company’s Annual Report on Form 10-K for the
fiscal year ended October 31, 2020 and the Company’s Quarterly
Reports on Form 10-Q for the quarterly periods during fiscal 2021
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. |
July 31,
2021 |
Statements of
consolidated operations |
(In thousands,
except per share data) |
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
July 31, |
|
July 31, |
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Total
revenues |
$690,683 |
|
|
$628,136 |
|
|
$1,968,509 |
|
|
$1,660,543 |
|
Costs and expenses
(1) |
|
633,589 |
|
|
|
621,633 |
|
|
|
1,865,355 |
|
|
|
1,674,340 |
|
(Loss) gain on
extinguishment of debt |
|
(306 |
) |
|
|
4,055 |
|
|
|
(306 |
) |
|
|
13,337 |
|
Income from
unconsolidated joint ventures |
|
5,011 |
|
|
|
5,658 |
|
|
|
9,568 |
|
|
|
13,419 |
|
Income before
income taxes |
|
61,799 |
|
|
|
16,216 |
|
|
|
112,416 |
|
|
|
12,959 |
|
Income tax
provision (benefit) |
|
14,097 |
|
|
|
853 |
|
|
|
(442,921 |
) |
|
|
2,665 |
|
Net income |
$47,702 |
|
|
$15,363 |
|
|
$555,337 |
|
|
$10,294 |
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data: |
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
Net income per
common share |
$6.85 |
|
|
$2.27 |
|
|
$80.02 |
|
|
$1.52 |
|
|
Weighted average
number of |
|
|
|
|
|
|
|
|
|
common shares
outstanding |
|
6,315 |
|
|
|
6,201 |
|
|
|
6,263 |
|
|
|
6,178 |
|
Assuming
dilution: |
|
|
|
|
|
|
|
|
Net income per
common share |
$6.72 |
|
|
$2.16 |
|
|
$78.51 |
|
|
$1.44 |
|
|
Weighted average
number of |
|
|
|
|
|
|
|
|
|
common shares
outstanding |
|
6,434 |
|
|
|
6,518 |
|
|
|
6,370 |
|
|
|
6,502 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
inventory impairment loss and land option write-offs. |
|
|
|
Hovnanian
Enterprises, Inc. |
July 31,
2021 |
Reconciliation of
income before income taxes excluding land-related charges and loss
(gain) on extinguishment of debt to income before income taxes |
(In
thousands) |
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
July 31, |
|
July 31, |
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Income before
income taxes |
$61,799 |
|
|
$16,216 |
|
|
$112,416 |
|
|
$12,959 |
|
Inventory
impairment loss and land option write-offs |
|
1,309 |
|
|
|
2,364 |
|
|
|
3,267 |
|
|
|
6,202 |
|
Loss (gain) on
extinguishment of debt |
|
306 |
|
|
|
(4,055 |
) |
|
|
306 |
|
|
|
(13,337 |
) |
Income before
income taxes excluding land-related |
|
|
|
|
|
|
|
|
charges and
loss (gain) on extinguishment of debt (1) |
$63,414 |
|
|
$14,525 |
|
|
$115,989 |
|
|
$5,824 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Income before
income taxes excluding land-related charges and loss (gain) on
extinguishment of debt is a non-GAAP financial measure. The most
directly comparable GAAP financial measure is income before income
taxes. |
Hovnanian
Enterprises, Inc. |
July 31,
2021 |
Gross margin |
(In
thousands) |
|
|
Homebuilding Gross Margin |
|
Homebuilding Gross Margin |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
July 31, |
|
July 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
(Unaudited) |
|
(Unaudited) |
Sale of homes |
|
$663,279 |
|
|
$605,933 |
|
|
$1,894,159 |
|
|
$1,608,513 |
|
Cost of sales, excluding
interest expense and land charges (1) |
|
|
516,530 |
|
|
|
499,654 |
|
|
|
1,488,919 |
|
|
|
1,323,916 |
|
Homebuilding gross margin,
before cost of sales interest expense and land charges (2) |
|
|
146,749 |
|
|
|
106,279 |
|
|
|
405,240 |
|
|
|
284,597 |
|
Cost of sales interest
expense, excluding land sales interest expense |
|
|
17,821 |
|
|
|
21,794 |
|
|
|
56,242 |
|
|
|
58,467 |
|
Homebuilding gross margin,
after cost of sales interest expense, before land charges (2) |
|
|
128,928 |
|
|
|
84,485 |
|
|
|
348,998 |
|
|
|
226,130 |
|
Land charges |
|
|
1,309 |
|
|
|
2,364 |
|
|
|
3,267 |
|
|
|
6,202 |
|
Homebuilding gross margin |
|
$127,619 |
|
|
$82,121 |
|
|
$345,731 |
|
|
$219,928 |
|
|
|
|
|
|
|
|
|
|
Homebuilding Gross margin
percentage |
|
|
19.2 |
% |
|
|
13.6 |
% |
|
|
18.3 |
% |
|
|
13.7 |
% |
Homebuilding Gross margin
percentage, before cost of sales interest expense and land charges
(2) |
|
|
22.1 |
% |
|
|
17.5 |
% |
|
|
21.4 |
% |
|
|
17.7 |
% |
Homebuilding Gross margin
percentage, after cost of sales interest expense, before land
charges (2) |
|
|
19.4 |
% |
|
|
13.9 |
% |
|
|
18.4 |
% |
|
|
14.1 |
% |
|
|
|
Land Sales Gross Margin |
|
Land Sales Gross Margin |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
July 31, |
|
July 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
(Unaudited) |
|
(Unaudited) |
Land and lot sales |
|
$6,819 |
|
|
$25 |
|
|
$11,730 |
|
|
$100 |
|
Land and lot sales cost of
sales, excluding interest and land charges (1) |
|
|
5,338 |
|
|
|
41 |
|
|
|
9,121 |
|
|
|
161 |
|
Land and lot sales gross
margin, excluding interest and land charges |
|
|
1,481 |
|
|
|
(16 |
) |
|
|
2,609 |
|
|
|
(61 |
) |
Land and lot sales
interest |
|
|
1,419 |
|
|
|
20 |
|
|
|
1,888 |
|
|
|
72 |
|
Land and lot sales gross
margin, including interest and excluding land charges |
|
$62 |
|
|
$(36 |
) |
|
$721 |
|
|
$(133 |
) |
|
|
(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. |
July 31,
2021 |
Reconciliation of
adjusted EBITDA to net income |
(In
thousands) |
|
Three Months Ended |
|
Nine Months Ended |
|
July 31, |
|
July 31, |
|
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
(Unaudited) |
|
(Unaudited) |
Net income |
$47,702 |
|
$15,363 |
|
|
$555,337 |
|
|
$10,294 |
|
Income tax provision
(benefit) |
|
14,097 |
|
|
853 |
|
|
|
(442,921 |
) |
|
|
2,665 |
|
Interest expense |
|
38,398 |
|
|
48,886 |
|
|
|
123,296 |
|
|
|
137,483 |
|
EBIT (1) |
|
100,197 |
|
|
65,102 |
|
|
|
235,712 |
|
|
|
150,442 |
|
Depreciation and
amortization |
|
1,269 |
|
|
1,355 |
|
|
|
4,091 |
|
|
|
3,897 |
|
EBITDA (2) |
|
101,466 |
|
|
66,457 |
|
|
|
239,803 |
|
|
|
154,339 |
|
Inventory impairment loss and
land option write-offs |
|
1,309 |
|
|
2,364 |
|
|
|
3,267 |
|
|
|
6,202 |
|
Loss (gain) on extinguishment
of debt |
|
306 |
|
|
(4,055 |
) |
|
|
306 |
|
|
|
(13,337 |
) |
Adjusted EBITDA (3) |
$103,081 |
|
$64,766 |
|
|
$243,376 |
|
|
$147,204 |
|
|
Interest incurred |
$39,181 |
|
$45,140 |
|
|
$122,508 |
|
|
$134,797 |
|
|
Adjusted EBITDA to interest
incurred |
|
2.63 |
|
|
1.43 |
|
|
|
1.99 |
|
|
|
1.09 |
|
|
|
(1) EBIT is a
non-GAAP financial measure. The most directly comparable GAAP
financial measure is net income. EBIT represents earnings before
interest expense and income taxes. |
(2) EBITDA is a
non-GAAP financial measure. The most directly comparable GAAP
financial measure is net income. EBITDA represents earnings before
interest expense, income taxes, depreciation and amortization. |
(3) Adjusted
EBITDA is a non-GAAP financial measure. The most directly
comparable GAAP financial measure is net income. Adjusted EBITDA
represents earnings before interest expense, income taxes,
depreciation, amortization, inventory impairment loss and land
option write-offs and (loss) gain on extinguishment of debt. |
|
|
Hovnanian
Enterprises, Inc. |
July 31,
2021 |
Interest
incurred, expensed and capitalized |
(In
thousands) |
|
Three Months Ended |
|
Nine Months Ended |
|
July 31, |
|
July 31, |
|
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
(Unaudited) |
|
(Unaudited) |
Interest capitalized at
beginning of period |
$59,772 |
|
$67,744 |
|
|
$65,010 |
|
|
$71,264 |
|
Plus interest incurred |
|
39,181 |
|
|
45,140 |
|
|
|
122,508 |
|
|
|
134,797 |
|
Less interest expensed |
|
38,398 |
|
|
48,886 |
|
|
|
123,296 |
|
|
|
137,483 |
|
Less interest contributed to
unconsolidated joint venture (1) |
|
- |
|
|
- |
|
|
|
3,667 |
|
|
|
4,580 |
|
Plus interest acquired from
unconsolidated joint venture (2) |
|
3,118 |
|
|
- |
|
|
|
3,118 |
|
|
|
- |
|
Interest capitalized at end of
period (3) |
$63,673 |
|
$63,998 |
|
|
$63,673 |
|
|
$63,998 |
|
|
(1) Represents
capitalized interest which was included as part of the assets
contributed to joint ventures the company entered into in April
2021 and December 2019 during the nine months ended July 31, 2021
and 2020, respectively. There was no impact to the Condensed
Consolidated Statement of Operations as a result of this
transaction. |
(2) Represents
capitalized interest which was included as part of the assets
purchased from a joint venture the company exited out of in June
2021 during the nine months ended July 31, 2021. 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. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In Thousands)
|
|
July 31, |
|
|
October 31, |
|
|
|
2021 |
|
|
2020 |
|
ASSETS |
|
(Unaudited) |
|
|
(1) |
|
Homebuilding: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$172,748 |
|
|
|
$262,489 |
|
Restricted cash and cash equivalents |
|
|
|
15,100 |
|
|
|
|
14,731 |
|
Inventories: |
|
|
|
|
|
|
|
|
Sold and unsold homes and lots under development |
|
|
|
1,119,876 |
|
|
|
|
921,594 |
|
Land and land options held for future development or sale |
|
|
|
95,416 |
|
|
|
|
91,957 |
|
Consolidated inventory not owned |
|
|
|
98,053 |
|
|
|
|
182,224 |
|
Total inventories |
|
|
|
1,313,345 |
|
|
|
|
1,195,775 |
|
Investments in and advances to unconsolidated joint ventures |
|
|
|
68,900 |
|
|
|
|
103,164 |
|
Receivables, deposits and notes, net |
|
|
|
37,735 |
|
|
|
|
33,686 |
|
Property, plant and equipment, net |
|
|
|
17,974 |
|
|
|
|
18,185 |
|
Prepaid expenses and other assets |
|
|
|
58,571 |
|
|
|
|
58,705 |
|
Total homebuilding |
|
|
|
1,684,373 |
|
|
|
|
1,686,735 |
|
|
|
|
|
|
|
|
|
|
Financial services |
|
|
|
180,218 |
|
|
|
|
140,607 |
|
|
|
|
|
|
|
|
|
|
Deferred tax assets, net |
|
|
|
447,453 |
|
|
|
|
- |
|
Total assets |
|
|
$2,312,044 |
|
|
|
$1,827,342 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
Nonrecourse mortgages secured by inventory, net of debt issuance
costs |
|
|
$118,020 |
|
|
|
$135,122 |
|
Accounts payable and other liabilities |
|
|
|
401,283 |
|
|
|
|
359,274 |
|
Customers’ deposits |
|
|
|
76,729 |
|
|
|
|
48,286 |
|
Liabilities from inventory not owned, net of debt issuance
costs |
|
|
|
69,627 |
|
|
|
|
131,204 |
|
Senior notes and credit facilities (net of discounts, premiums and
debt issuance costs) |
|
|
|
1,317,524 |
|
|
|
|
1,431,110 |
|
Accrued Interest |
|
|
|
47,460 |
|
|
|
|
35,563 |
|
Total homebuilding |
|
|
|
2,030,643 |
|
|
|
|
2,140,559 |
|
|
|
|
|
|
|
|
|
|
Financial services |
|
|
|
158,226 |
|
|
|
|
119,045 |
|
Income taxes payable |
|
|
|
2,484 |
|
|
|
|
3,832 |
|
Total liabilities |
|
|
|
2,191,353 |
|
|
|
|
2,263,436 |
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
Hovnanian Enterprises, Inc.
stockholders' equity deficit: |
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value - authorized 100,000 shares;
issued and outstanding 5,600 shares with a liquidation preference
of $140,000 at July 31, 2021 and October 31, 2020 |
|
|
|
135,299 |
|
|
|
|
135,299 |
|
Common stock, Class A, $0.01 par value - authorized 16,000,000
shares; issued 6,064,070 shares at July 31, 2021 and 5,990,310
shares at October 31, 2020 |
|
|
|
61 |
|
|
|
|
60 |
|
Common stock, Class B, $0.01 par value (convertible to Class A at
time of sale) - authorized 2,400,000 shares; issued 686,888 shares
at July 31, 2021 and 649,886 shares at October 31, 2020 |
|
|
|
7 |
|
|
|
|
7 |
|
Paid in capital - common stock |
|
|
|
719,770 |
|
|
|
|
718,110 |
|
Accumulated deficit |
|
|
|
(619,708 |
) |
|
|
|
(1,175,045 |
) |
Treasury stock - at cost – 470,430 shares of Class A common stock
and 27,669 shares of Class B common stock at July 31, 2021 and
October 31, 2020 |
|
|
|
(115,360 |
) |
|
|
|
(115,360 |
) |
Total Hovnanian Enterprises, Inc. stockholders’ equity
(deficit) |
|
|
|
120,069 |
|
|
|
|
(436,929 |
) |
Noncontrolling interest in
consolidated joint ventures |
|
|
|
622 |
|
|
|
|
835 |
|
Total equity (deficit) |
|
|
|
120,691 |
|
|
|
|
(436,094 |
) |
Total liabilities and
equity |
|
|
$2,312,044 |
|
|
|
$1,827,342 |
|
(1) Derived from the audited balance sheet as of October 31,
2020.
HOVNANIAN ENTERPRISES, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In
Thousands Except Per Share Data)(Unaudited)
|
|
Three Months Ended July 31, |
|
|
Nine Months Ended July 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale of homes |
|
|
$663,279 |
|
|
|
$605,933 |
|
|
|
$1,894,159 |
|
|
|
$1,608,513 |
|
Land sales and other revenues |
|
|
|
7,559 |
|
|
|
|
908 |
|
|
|
|
13,280 |
|
|
|
|
2,360 |
|
Total homebuilding |
|
|
|
670,838 |
|
|
|
|
606,841 |
|
|
|
|
1,907,439 |
|
|
|
|
1,610,873 |
|
Financial services |
|
|
|
19,845 |
|
|
|
|
21,295 |
|
|
|
|
61,070 |
|
|
|
|
49,670 |
|
Total revenues |
|
|
|
690,683 |
|
|
|
|
628,136 |
|
|
|
|
1,968,509 |
|
|
|
|
1,660,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales, excluding interest |
|
|
|
521,868 |
|
|
|
|
499,695 |
|
|
|
|
1,498,040 |
|
|
|
|
1,324,077 |
|
Cost of sales interest |
|
|
|
19,240 |
|
|
|
|
21,814 |
|
|
|
|
58,130 |
|
|
|
|
58,539 |
|
Inventory impairment loss and land option write-offs |
|
|
|
1,309 |
|
|
|
|
2,364 |
|
|
|
|
3,267 |
|
|
|
|
6,202 |
|
Total cost of sales |
|
|
|
542,417 |
|
|
|
|
523,873 |
|
|
|
|
1,559,437 |
|
|
|
|
1,388,818 |
|
Selling, general and administrative |
|
|
|
42,988 |
|
|
|
|
40,608 |
|
|
|
|
125,417 |
|
|
|
|
121,887 |
|
Total homebuilding expenses |
|
|
|
585,405 |
|
|
|
|
564,481 |
|
|
|
|
1,684,854 |
|
|
|
|
1,510,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial services |
|
|
|
11,238 |
|
|
|
|
10,493 |
|
|
|
|
32,953 |
|
|
|
|
29,677 |
|
Corporate general and administrative |
|
|
|
17,284 |
|
|
|
|
19,321 |
|
|
|
|
81,149 |
|
|
|
|
54,340 |
|
Other interest |
|
|
|
19,158 |
|
|
|
|
27,072 |
|
|
|
|
65,166 |
|
|
|
|
78,944 |
|
Other operations |
|
|
|
504 |
|
|
|
|
266 |
|
|
|
|
1,233 |
|
|
|
|
674 |
|
Total expenses |
|
|
|
633,589 |
|
|
|
|
621,633 |
|
|
|
|
1,865,355 |
|
|
|
|
1,674,340 |
|
(Loss) gain on extinguishment
of debt |
|
|
|
(306 |
) |
|
|
|
4,055 |
|
|
|
|
(306 |
) |
|
|
|
13,337 |
|
Income from unconsolidated
joint ventures |
|
|
|
5,011 |
|
|
|
|
5,658 |
|
|
|
|
9,568 |
|
|
|
|
13,419 |
|
Income before income
taxes |
|
|
|
61,799 |
|
|
|
|
16,216 |
|
|
|
|
112,416 |
|
|
|
|
12,959 |
|
State and federal income tax
provision (benefit): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State |
|
|
|
1,476 |
|
|
|
|
853 |
|
|
|
|
(89,272 |
) |
|
|
|
2,665 |
|
Federal |
|
|
|
12,621 |
|
|
|
|
- |
|
|
|
|
(353,649 |
) |
|
|
|
- |
|
Total income taxes |
|
|
|
14,097 |
|
|
|
|
853 |
|
|
|
|
(442,921 |
) |
|
|
|
2,665 |
|
Net income |
|
|
$47,702 |
|
|
|
$15,363 |
|
|
|
$555,337 |
|
|
|
$10,294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share |
|
|
$6.85 |
|
|
|
$2.27 |
|
|
|
$80.02 |
|
|
|
$1.52 |
|
Weighted-average number of common shares outstanding |
|
|
|
6,315 |
|
|
|
|
6,201 |
|
|
|
|
6,263 |
|
|
|
|
6,178 |
|
Assuming dilution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share |
|
|
$6.72 |
|
|
|
$2.16 |
|
|
|
$78.51 |
|
|
|
$1.44 |
|
Weighted-average number of common shares outstanding |
|
|
|
6,434 |
|
|
|
|
6,518 |
|
|
|
|
6,370 |
|
|
|
|
6,502 |
|
See notes to condensed consolidated financial statements
(unaudited).
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 |
|
|
July 31, |
July 31, |
July 31, |
|
|
|
2021 |
|
2020 |
% Change |
|
2021 |
|
2020 |
% Change |
|
2021 |
|
2020 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(NJ, PA) |
Home |
|
62 |
|
102 |
(39.2)% |
|
|
44 |
|
95 |
(53.7)% |
|
|
160 |
|
113 |
41.6% |
|
|
Dollars |
$52,066 |
$51,586 |
0.9% |
|
$35,255 |
$41,354 |
(14.7)% |
|
$122,638 |
$61,002 |
101.0% |
|
|
Avg. Price |
$839,774 |
$505,745 |
66.0% |
|
$801,250 |
$435,305 |
84.1% |
|
$766,488 |
$539,841 |
42.0% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(DE, MD, VA, WV) |
Home |
|
176 |
|
307 |
(42.7)% |
|
|
189 |
|
213 |
(11.3)% |
|
|
572 |
|
523 |
9.4% |
|
|
Dollars |
$117,341 |
$152,511 |
(23.1)% |
|
$106,195 |
$111,160 |
(4.5)% |
|
$361,329 |
$269,972 |
33.8% |
|
|
Avg. Price |
$666,710 |
$496,775 |
34.2% |
|
$561,878 |
$521,878 |
7.7% |
|
$631,694 |
$516,199 |
22.4% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(IL, OH) |
Home |
|
165 |
|
263 |
(37.3)% |
|
|
190 |
|
197 |
(3.6)% |
|
|
648 |
|
534 |
21.3% |
|
|
Dollars |
$56,848 |
$79,394 |
(28.4)% |
|
$60,588 |
$62,901 |
(3.7)% |
|
$205,101 |
$149,016 |
37.6% |
|
|
Avg. Price |
$344,533 |
$301,878 |
14.1% |
|
$318,884 |
$319,294 |
(0.1)% |
|
$316,514 |
$279,056 |
13.4% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(FL, GA, SC) |
Home |
|
124 |
|
172 |
(27.9)% |
|
|
139 |
|
155 |
(10.3)% |
|
|
440 |
|
304 |
44.7% |
|
|
Dollars |
$58,522 |
$79,846 |
(26.7)% |
|
$61,978 |
$65,595 |
(5.5)% |
|
$211,859 |
$145,947 |
45.2% |
|
|
Avg. Price |
$471,952 |
$464,221 |
1.7% |
|
$445,885 |
$423,194 |
5.4% |
|
$481,498 |
$480,089 |
0.3% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(AZ, TX) |
Home |
|
469 |
|
814 |
(42.4)% |
|
|
593 |
|
641 |
(7.5)% |
|
|
1,292 |
|
938 |
37.7% |
|
|
Dollars |
$196,481 |
$260,891 |
(24.7)% |
|
$212,773 |
$214,608 |
(0.9)% |
|
$524,029 |
$308,918 |
69.6% |
|
|
Avg. Price |
$418,936 |
$320,506 |
30.7% |
|
$358,808 |
$334,802 |
7.2% |
|
$405,595 |
$329,337 |
23.2% |
|
West |
|
|
|
|
|
|
|
|
|
|
(CA) |
Home |
|
215 |
|
568 |
(62.1)% |
|
|
343 |
|
252 |
36.1% |
|
|
561 |
|
644 |
(12.9)% |
|
|
Dollars |
$127,872 |
$258,067 |
(50.5)% |
|
$186,490 |
$110,315 |
69.1% |
|
$325,472 |
$299,564 |
8.6% |
|
|
Avg. Price |
$594,753 |
$454,343 |
30.9% |
|
$543,703 |
$437,758 |
24.2% |
|
$580,164 |
$465,161 |
24.7% |
|
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
1,211 |
|
2,226 |
(45.6)% |
|
|
1,498 |
|
1,553 |
(3.5)% |
|
|
3,673 |
|
3,056 |
20.2% |
|
|
Dollars |
$609,130 |
$882,295 |
(31.0)% |
|
$663,279 |
$605,933 |
9.5% |
|
$1,750,428 |
$1,234,419 |
41.8% |
|
|
Avg. Price |
$502,998 |
$396,359 |
26.9% |
|
$442,776 |
$390,169 |
13.5% |
|
$476,566 |
$403,933 |
18.0% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
165 |
|
189 |
(12.7)% |
|
|
179 |
|
228 |
(21.5)% |
|
|
399 |
|
264 |
51.1% |
|
|
Dollars |
$107,111 |
$106,857 |
0.2% |
|
$102,262 |
$132,014 |
(22.5)% |
|
$241,346 |
$150,660 |
60.2% |
|
|
Avg. Price |
$649,158 |
$565,381 |
14.8% |
|
$571,296 |
$579,009 |
(1.3)% |
|
$604,877 |
$570,682 |
6.0% |
|
Grand Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
1,376 |
|
2,415 |
(43.0)% |
|
|
1,677 |
|
1,781 |
(5.8)% |
|
|
4,072 |
|
3,320 |
22.7% |
|
|
Dollars |
$716,241 |
$989,152 |
(27.6)% |
|
$765,541 |
$737,947 |
3.7% |
|
$1,991,774 |
$1,385,079 |
43.8% |
|
|
Avg. Price |
$520,524 |
$409,587 |
27.1% |
|
$456,494 |
$414,344 |
10.2% |
|
$489,139 |
$417,192 |
17.2% |
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
215 |
|
185 |
16.2% |
|
|
0 |
|
0 |
0.0% |
|
|
1,666 |
|
766 |
117.5% |
|
|
Dollars |
$33,802 |
$29,012 |
16.5% |
|
$0 |
$0 |
0.0% |
|
$261,653 |
$120,562 |
117.0% |
|
|
Avg. Price |
$157,219 |
$156,821 |
0.3% |
|
$0 |
$0 |
0.0% |
|
$157,055 |
$157,392 |
(0.2)% |
|
|
DELIVERIES INCLUDE EXTRAS |
Notes: |
(1) Contracts are
defined as new contracts signed during the period for the purchase
of homes, less cancellations of prior contracts. |
(2) Represents
home deliveries, home revenues and average prices for our
unconsolidated homebuilding joint ventures for the period. We
provide this data as a supplement to our consolidated results as an
indicator of the volume managed in our unconsolidated homebuilding
joint ventures. Our proportionate share of the income or loss of
unconsolidated homebuilding and land development joint ventures is
reflected as a separate line item in our consolidated financial
statements under “Income from unconsolidated joint ventures”. |
HOVNANIAN
ENTERPRISES, INC. |
(DOLLARS
IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT
DATA EXCLUDES UNCONSOLIDATED
JOINT VENTURES) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Nine Months Ended |
Nine Months Ended |
Backlog |
|
|
July 31, |
July 31, |
July 31, |
|
|
|
2021 |
|
2020 |
% Change |
|
2021 |
|
2020 |
% Change |
|
2021 |
|
2020 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(NJ, PA) |
Home |
|
169 |
|
231 |
(26.8)% |
|
|
139 |
|
270 |
(48.5)% |
|
|
160 |
|
113 |
41.6% |
|
|
Dollars |
$135,684 |
$107,855 |
25.8% |
|
$95,157 |
$133,409 |
(28.7)% |
|
$122,638 |
$61,002 |
101.0% |
|
|
Avg. Price |
$802,864 |
$466,905 |
72.0% |
|
$684,583 |
$494,107 |
38.5% |
|
$766,488 |
$539,841 |
42.0% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(DE, MD, VA, WV) |
Home |
|
647 |
|
737 |
(12.2)% |
|
|
581 |
|
536 |
8.4% |
|
|
572 |
|
523 |
9.4% |
|
|
Dollars |
$414,059 |
$374,865 |
10.5% |
|
$311,230 |
$288,426 |
7.9% |
|
$361,329 |
$269,972 |
33.8% |
|
|
Avg. Price |
$639,968 |
$508,636 |
25.8% |
|
$535,680 |
$538,108 |
(0.5)% |
|
$631,694 |
$516,199 |
22.4% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(IL, OH) |
Home |
|
628 |
|
624 |
0.6% |
|
|
576 |
|
540 |
6.7% |
|
|
648 |
|
534 |
21.3% |
|
|
Dollars |
$216,775 |
$192,171 |
12.8% |
|
$181,191 |
$165,836 |
9.3% |
|
$205,101 |
$149,016 |
37.6% |
|
|
Avg. Price |
$345,183 |
$307,966 |
12.1% |
|
$314,568 |
$307,104 |
2.4% |
|
$316,514 |
$279,056 |
13.4% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(FL, GA, SC) |
Home |
|
487 |
|
436 |
11.7% |
|
|
408 |
|
379 |
7.7% |
|
|
440 |
|
304 |
44.7% |
|
|
Dollars |
$223,201 |
$195,512 |
14.2% |
|
$188,489 |
$158,592 |
18.9% |
|
$211,859 |
$145,947 |
45.2% |
|
|
Avg. Price |
$458,318 |
$448,422 |
2.2% |
|
$461,983 |
$418,449 |
10.4% |
|
$481,498 |
$480,089 |
0.3% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(AZ, TX) |
Home |
|
2,034 |
|
1,924 |
5.7% |
|
|
1,808 |
|
1,649 |
9.6% |
|
|
1,292 |
|
938 |
37.7% |
|
|
Dollars |
$783,924 |
$626,817 |
25.1% |
|
$620,120 |
$548,796 |
13.0% |
|
$524,029 |
$308,918 |
69.6% |
|
|
Avg. Price |
$385,410 |
$325,788 |
18.3% |
|
$342,987 |
$332,805 |
3.1% |
|
$405,595 |
$329,337 |
23.2% |
|
West |
|
|
|
|
|
|
|
|
|
|
(CA) |
Home |
|
795 |
|
1,083 |
(26.6)% |
|
|
989 |
|
740 |
33.6% |
|
|
561 |
|
644 |
(12.9)% |
|
|
Dollars |
$453,557 |
$488,317 |
(7.1)% |
|
$497,972 |
$313,454 |
58.9% |
|
$325,472 |
$299,564 |
8.6% |
|
|
Avg. Price |
$570,512 |
$450,893 |
26.5% |
|
$503,511 |
$423,586 |
18.9% |
|
$580,164 |
$465,161 |
24.7% |
|
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
4,760 |
|
5,035 |
(5.5)% |
|
|
4,501 |
|
4,114 |
9.4% |
|
|
3,673 |
|
3,056 |
20.2% |
|
|
Dollars |
$2,227,200 |
$1,985,537 |
12.2% |
|
$1,894,159 |
$1,608,513 |
17.8% |
|
$1,750,428 |
$1,234,419 |
41.8% |
|
|
Avg. Price |
$467,899 |
$394,347 |
18.7% |
|
$420,831 |
$390,985 |
7.6% |
|
$476,566 |
$403,933 |
18.0% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
538 |
|
514 |
4.7% |
|
|
453 |
|
565 |
(19.8)% |
|
|
399 |
|
264 |
51.1% |
|
|
Dollars |
$318,824 |
$296,664 |
7.5% |
|
$264,442 |
$330,559 |
(20.0)% |
|
$241,346 |
$150,660 |
60.2% |
|
|
Avg. Price |
$592,610 |
$577,167 |
2.7% |
|
$583,757 |
$585,060 |
(0.2)% |
|
$604,877 |
$570,682 |
6.0% |
|
Grand Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
5,298 |
|
5,549 |
(4.5)% |
|
|
4,954 |
|
4,679 |
5.9% |
|
|
4,072 |
|
3,320 |
22.7% |
|
|
Dollars |
$2,546,024 |
$2,282,201 |
11.6% |
|
$2,158,601 |
$1,939,072 |
11.3% |
|
$1,991,774 |
$1,385,079 |
43.8% |
|
|
Avg. Price |
$480,563 |
$411,281 |
16.8% |
|
$435,729 |
$414,420 |
5.1% |
|
$489,139 |
$417,192 |
17.2% |
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
574 |
|
564 |
1.8% |
|
|
0 |
|
0 |
0.0% |
|
|
1,666 |
|
766 |
117.5% |
|
|
Dollars |
$89,980 |
$88,246 |
2.0% |
|
$0 |
$0 |
0.0% |
|
$261,653 |
$120,562 |
117.0% |
|
|
Avg. Price |
$156,760 |
$156,465 |
0.2% |
|
$0 |
$0 |
0.0% |
|
$157,055 |
$157,392 |
(0.2)% |
|
|
DELIVERIES INCLUDE EXTRAS |
Notes: |
(1) Contracts are
defined as new contracts signed during the period for the purchase
of homes, less cancellations of prior contracts. |
(2) Represents
home deliveries, home revenues and average prices for our
unconsolidated homebuilding joint ventures for the period. We
provide this data as a supplement to our consolidated results as an
indicator of the volume managed in our unconsolidated homebuilding
joint ventures. Our proportionate share of the income or loss of
unconsolidated homebuilding and land development joint ventures is
reflected as a separate line item in our consolidated financial
statements under “Income from unconsolidated joint ventures”. |
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 |
|
|
July 31, |
July 31, |
July 31, |
|
|
|
2021 |
|
|
2020 |
% Change |
|
2021 |
|
2020 |
% Change |
|
2021 |
|
2020 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
10 |
|
|
39 |
(74.4)% |
|
|
16 |
|
67 |
(76.1)% |
|
|
8 |
|
33 |
(75.8)% |
|
(excluding KSA JV) |
Dollars |
$14,506 |
|
$33,759 |
(57.0)% |
|
$21,845 |
$50,895 |
(57.1)% |
|
$10,500 |
$31,571 |
(66.7)% |
|
(NJ. PA) |
Avg.
Price |
$1,450,600 |
|
$865,615 |
67.6% |
|
$1,365,313 |
$759,627 |
79.7% |
|
$1,312,500 |
$956,697 |
37.2% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
41 |
|
|
36 |
13.9% |
|
|
45 |
|
33 |
36.4% |
|
|
123 |
|
48 |
156.3% |
|
(DE, MD, VA, WV) |
Dollars |
$26,890 |
|
$17,349 |
55.0% |
|
$24,726 |
$16,665 |
48.4% |
|
$77,565 |
$23,817 |
225.7% |
|
|
Avg.
Price |
$655,854 |
|
$481,917 |
36.1% |
|
$549,467 |
$505,000 |
8.8% |
|
$630,610 |
$496,188 |
27.1% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
0 |
|
|
1 |
(100.0)% |
|
|
0 |
|
4 |
(100.0)% |
|
|
0 |
|
0 |
0.0% |
|
(IL, OH) |
Dollars |
$0 |
|
$461 |
(100.0)% |
|
$0 |
$1,825 |
(100.0)% |
|
$0 |
$0 |
0.0% |
|
|
Avg.
Price |
$0 |
|
$461,000 |
(100.0)% |
|
$0 |
$456,250 |
(100.0)% |
|
$0 |
$0 |
0.0% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
92 |
|
|
66 |
39.4% |
|
|
70 |
|
74 |
(5.4)% |
|
|
231 |
|
129 |
79.1% |
|
(FL, GA, SC) |
Dollars |
$55,830 |
|
$31,843 |
75.3% |
|
$32,842 |
$35,528 |
(7.6)% |
|
$137,907 |
$64,865 |
112.6% |
|
|
Avg.
Price |
$606,848 |
|
$482,470 |
25.8% |
|
$469,171 |
$480,108 |
(2.3)% |
|
$597,000 |
$502,829 |
18.7% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
0 |
|
|
31 |
(100.0)% |
|
|
21 |
|
31 |
(32.3)% |
|
|
0 |
|
46 |
(100.0)% |
|
(AZ, TX) |
Dollars |
$(8) |
|
$17,928 |
(100.0)% |
|
$12,750 |
$20,141 |
(36.7)% |
|
$0 |
$27,759 |
(100.0)% |
|
|
Avg.
Price |
$0 |
|
$578,323 |
(100.0)% |
|
$607,143 |
$649,710 |
(6.6)% |
|
$0 |
$603,457 |
(100.0)% |
|
West |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
22 |
|
|
16 |
37.5% |
|
|
27 |
|
19 |
42.1% |
|
|
37 |
|
8 |
362.5% |
|
(CA) |
Dollars |
$9,893 |
|
$5,517 |
79.3% |
|
$10,099 |
$6,960 |
45.1% |
|
$15,374 |
$2,648 |
480.6% |
|
|
Avg.
Price |
$449,682 |
|
$344,813 |
30.4% |
|
$374,037 |
$366,316 |
2.1% |
|
$415,514 |
$331,000 |
25.5% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
165 |
|
|
189 |
(12.7)% |
|
|
179 |
|
228 |
(21.5)% |
|
|
399 |
|
264 |
51.1% |
|
|
Dollars |
$107,111 |
|
$106,857 |
0.2% |
|
$102,262 |
$132,014 |
(22.5)% |
|
$241,346 |
$150,660 |
60.2% |
|
|
Avg.
Price |
$649,158 |
|
$565,381 |
14.8% |
|
$571,296 |
$579,009 |
(1.3)% |
|
$604,877 |
$570,682 |
6.0% |
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
215 |
|
|
185 |
16.2% |
|
|
0 |
|
0 |
0.0% |
|
|
1,666 |
|
766 |
117.5% |
|
|
Dollars |
$33,802 |
|
$29,012 |
16.5% |
|
$0 |
$0 |
0.0% |
|
$261,653 |
$120,562 |
117.0% |
|
|
Avg. Price |
$157,219 |
|
$156,821 |
0.3% |
|
$0 |
$0 |
0.0% |
|
$157,055 |
$157,392 |
(0.2)% |
|
|
DELIVERIES INCLUDE EXTRAS |
Notes: |
(1) Contracts are
defined as new contracts signed during the period for the purchase
of homes, less cancellations of prior contracts. |
(2) Represents
home deliveries, home revenues and average prices for our
unconsolidated homebuilding joint ventures for the period. We
provide this data as a supplement to our consolidated results as an
indicator of the volume managed in our unconsolidated homebuilding
joint ventures. Our proportionate share of the income or loss of
unconsolidated homebuilding and land development joint ventures is
reflected as a separate line item in our consolidated financial
statements under “Income from unconsolidated joint ventures”. |
HOVNANIAN
ENTERPRISES, INC. |
(DOLLARS
IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT
DATA UNCONSOLIDATED JOINT VENTURES ONLY) |
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Nine Months Ended |
Nine Months Ended |
Backlog |
|
|
July 31, |
July 31, |
July 31, |
|
|
|
2021 |
|
2020 |
% Change |
|
2021 |
|
2020 |
% Change |
|
2021 |
|
2020 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
37 |
|
130 |
(71.5)% |
|
|
47 |
|
173 |
(72.8)% |
|
|
8 |
|
33 |
(75.8)% |
|
(excluding KSA JV) |
Dollars |
$49,318 |
$104,142 |
(52.6)% |
|
$63,353 |
$136,250 |
(53.5)% |
|
$10,500 |
$31,571 |
(66.7)% |
|
(NJ, PA) |
Avg. Price |
$1,332,919 |
$801,092 |
66.4% |
|
$1,347,936 |
$787,572 |
71.2% |
|
$1,312,500 |
$956,697 |
37.2% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
90 |
|
70 |
28.6% |
|
|
108 |
|
64 |
68.8% |
|
|
123 |
|
48 |
156.3% |
|
(DE, MD, VA, WV) |
Dollars |
$55,178 |
$35,223 |
56.7% |
|
$57,050 |
$32,381 |
76.2% |
|
$77,565 |
$23,817 |
225.7% |
|
|
Avg. Price |
$613,089 |
$503,182 |
21.8% |
|
$528,241 |
$505,953 |
4.4% |
|
$630,610 |
$496,188 |
27.1% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
1 |
|
11 |
(90.9)% |
|
|
1 |
|
14 |
(92.9)% |
|
|
0 |
|
0 |
0.0% |
|
(IL, OH) |
Dollars |
$409 |
$5,109 |
(92.0)% |
|
$409 |
$6,394 |
(93.6)% |
|
$0 |
$0 |
0.0% |
|
|
Avg. Price |
$409,000 |
$464,455 |
(11.9)% |
|
$409,000 |
$456,714 |
(10.4)% |
|
$0 |
$0 |
0.0% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
336 |
|
185 |
81.6% |
|
|
191 |
|
179 |
6.7% |
|
|
231 |
|
129 |
79.1% |
|
(FL, GA, SC) |
Dollars |
$182,950 |
$90,547 |
102.0% |
|
$93,394 |
$86,255 |
8.3% |
|
$137,907 |
$64,865 |
112.6% |
|
|
Avg. Price |
$544,494 |
$489,442 |
11.2% |
|
$488,974 |
$481,872 |
1.5% |
|
$597,000 |
$502,829 |
18.7% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
4 |
|
76 |
(94.7)% |
|
|
50 |
|
75 |
(33.3)% |
|
|
0 |
|
46 |
(100.0)% |
|
(AZ, TX) |
Dollars |
$3,127 |
$47,147 |
(93.4)% |
|
$29,930 |
$47,706 |
(37.3)% |
|
$0 |
$27,759 |
(100.0)% |
|
|
Avg. Price |
$781,750 |
$620,355 |
26.0% |
|
$598,600 |
$636,080 |
(5.9)% |
|
$0 |
$603,457 |
(100.0)% |
|
West |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
70 |
|
42 |
66.7% |
|
|
56 |
|
60 |
(6.7)% |
|
|
37 |
|
8 |
362.5% |
|
(CA) |
Dollars |
$27,842 |
$14,496 |
92.1% |
|
$20,306 |
$21,573 |
(5.9)% |
|
$15,374 |
$2,648 |
480.6% |
|
|
Avg. Price |
$397,743 |
$345,143 |
15.2% |
|
$362,607 |
$359,550 |
0.9% |
|
$415,514 |
$331,000 |
25.5% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
538 |
|
514 |
4.7% |
|
|
453 |
|
565 |
(19.8)% |
|
|
399 |
|
264 |
51.1% |
|
|
Dollars |
$318,824 |
$296,663 |
7.5% |
|
$264,442 |
$330,559 |
(20.0)% |
|
$241,346 |
$150,660 |
60.2% |
|
|
Avg. Price |
$592,610 |
$577,167 |
2.7% |
|
$583,757 |
$585,060 |
(0.2)% |
|
$604,877 |
$570,682 |
6.0% |
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
574 |
|
564 |
1.8% |
|
|
0 |
|
0 |
0.0% |
|
|
1,666 |
|
766 |
117.5% |
|
|
Dollars |
$89,980 |
$88,246 |
2.0% |
|
$0 |
$0 |
0.0% |
|
$261,653 |
$120,562 |
117.0% |
|
|
Avg. Price |
$156,760 |
$156,465 |
0.2% |
|
$0 |
$0 |
0.0% |
|
$157,055 |
$157,392 |
(0.2)% |
|
|
DELIVERIES INCLUDE EXTRAS |
Notes: |
(1) Contracts are
defined as new contracts signed during the period for the purchase
of homes, less cancellations of prior contracts. |
(2) Represents
home deliveries, home revenues and average prices for our
unconsolidated homebuilding joint ventures for the period. We
provide this data as a supplement to our consolidated results as an
indicator of the volume managed in our unconsolidated homebuilding
joint ventures. Our proportionate share of the income or loss of
unconsolidated homebuilding and land development joint ventures is
reflected as a separate line item in our consolidated financial
statements under “Income from unconsolidated joint ventures”. |
|
|
|
Contact: |
J. Larry Sorsby |
Jeffrey T. O’Keefe |
|
Executive Vice President & CFO |
Vice President, Investor Relations |
|
732-747-7800 |
732-747-7800 |
|
|
|
Hovnanian Enterprises (NYSE:HOV)
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