Exceeded Fourth Quarter Gross Margin and
Profit Guidance
49% Increase in Contract Backlog
Dollars
Hovnanian Enterprises, Inc. (NYSE:HOV), a leading national
homebuilder, reported results for its fiscal fourth quarter and
year ended October 31, 2015.
RESULTS FOR THE THREE AND TWELVE MONTH PERIODS ENDED
OCTOBER 31, 2015:
- Total revenues were $693.2 million in the fourth quarter of
fiscal 2015, a decrease of 0.7% compared with $698.4 million in the
fourth quarter of fiscal 2014. For the twelve months ended October
31, 2015, total revenues increased 4.1% to $2.15 billion compared
with $2.06 billion in the prior fiscal year.
- Homebuilding gross margin percentage, before interest expense
and land charges included in cost of sales, was 18.0% for the
fourth quarter ended October 31, 2015, compared with 19.3% in last
year's fourth quarter, and 17.8% for the third quarter of fiscal
2015. During all of fiscal 2015, homebuilding gross margin
percentage, before interest expense and land charges included in
cost of sales, was 17.6% compared with 19.9% in the same period of
the previous year.
- Pre-tax income, excluding land related charges and losses on
extinguishment of debt, in the fourth quarter of fiscal 2015 was
$41.8 million compared with $39.3 million in the prior year's
fourth quarter. For all of fiscal 2015, the pre-tax loss, excluding
land related charges and losses on extinguishment of debt, was $9.7
million compared with income of $26.6 million during fiscal 2014.
- Net income was $25.5 million, or $0.16 per fully diluted common
share, for the fourth quarter of fiscal 2015, compared with net
income, excluding the $285.1 million tax benefit from the reduction
of our deferred tax asset valuation allowance, of $37.4 million, or
$0.23 per fully diluted common share, in the fourth quarter of the
previous year. For the year ended October 31, 2015, the net loss
was $16.1 million, or $0.11 per common share, compared with net
income, excluding the $285.1 million tax benefit from the reduction
of our deferred tax asset valuation allowance, of $22.0 million, or
$0.14 per fully diluted common share, in fiscal 2014.
- The dollar value of net contracts, including unconsolidated
joint ventures, during the fourth quarter of fiscal 2015 increased
28.7% to $684.3 million compared with $531.9 million in last year's
fourth quarter. The dollar value of consolidated net contracts
increased 22.1% to $624.9 million for the three months ended
October 31, 2015 compared with $511.8 million during the same
quarter a year ago.
- In the fourth quarter of fiscal 2015, the number of net
contracts, including unconsolidated joint ventures, increased 20.7%
to 1,629 homes for the fourth quarter of fiscal 2015 from 1,350
homes during the fourth quarter of fiscal 2014. The number of
consolidated net contracts increased 18.0% to 1,535 homes compared
with 1,301 homes in the prior year's fourth quarter.
- The dollar value of net contracts, including unconsolidated
joint ventures, for the twelve months ended October 31, 2015
increased 18.7% to $2.65 billion compared with $2.23 billion in
fiscal 2014. The dollar value of consolidated net contracts
increased 16.2% to $2.45 billion for all of fiscal 2015 compared
with $2.11 billion in the previous year.
- For the year ended October 31, 2015, the number of net
contracts, including unconsolidated joint ventures, increased 11.3%
to 6,547 homes from 5,883 homes in the previous year. The
number of consolidated net contracts for the full year increased
11.2% to 6,183 homes compared with 5,559 homes in the prior year.
- Net contracts per active selling community, including
unconsolidated joint ventures, increased 10.9% to 7.1 net contracts
per active selling community for the quarter ended October 31, 2015
compared with 6.4 net contracts, including unconsolidated joint
ventures, per active selling community in the fourth quarter of
fiscal 2014. Consolidated net contracts per active selling
community increased 7.7% to 7.0 net contracts per active selling
community for the quarter ended October 31, 2015 compared with 6.5
net contracts per active selling community in the fourth quarter of
fiscal 2014.
- As of October 31, 2015, the dollar value of contract backlog,
including unconsolidated joint ventures, was $1.35 billion, an
increase of 49.0% compared with $905.0 million as of October 31,
2014. The dollar value of consolidated contract backlog
increased 42.1% to $1.22 billion compared with $855.8 million as of
October 31, 2014.
- As of October 31, 2015, the number of homes in contract
backlog, including unconsolidated joint ventures, increased 32.9%
to 3,112 homes compared with 2,341 homes as of October 31,
2014. The number of homes in consolidated contract backlog
increased 30.3% to 2,905 homes compared with 2,229 homes as of the
end of the fourth quarter of fiscal 2014.
- Consolidated deliveries were 1,727 homes in the fourth quarter
of fiscal 2015, a 2.0% decrease compared with 1,762 homes in the
fourth quarter of fiscal 2014. For the three months ended October
31, 2015, deliveries, including unconsolidated joint ventures,
decreased 6.5% to 1,792 homes compared with 1,916 homes in the
fourth quarter of the prior year.
- For the year ended October 31, 2015, consolidated deliveries
were 5,507 homes, a 0.2% increase compared with 5,497 homes last
year. During all of fiscal 2015, deliveries, including
unconsolidated joint ventures, decreased 2.7% to 5,776 homes
compared with 5,934 homes in the same period of the previous year.
- As of October 31, 2015, consolidated active selling communities
increased 9.0% to 219 communities compared with 201 communities at
October 31, 2014 and increased 6.3% compared to 206 communities at
July 31, 2015.
- Total interest expense as a percentage of total revenues was
5.9% during the fourth quarter of fiscal 2015 compared with 5.3% in
the same period of the previous year. For the twelve months ended
October 31, 2015, total interest expense as a percentage of total
revenues was 7.0% compared with 6.9% for the same period a year
ago.
- Total SG&A was $49.4 million, including a $15.2 million
benefit from the reduction of our construction defect reserves, or
7.1% of total revenues, during the fourth quarter of fiscal 2015
compared with $65.2 million, or 9.3% of total revenues, in last
year's fourth quarter. Total SG&A was $250.9 million, or 11.7%
of total revenues, for all of fiscal 2015 compared with $254.9
million, or 12.4% of total revenues, in the prior year.
- The contract cancellation rate, including unconsolidated joint
ventures, for the fourth quarter of fiscal 2015 was 20%, compared
with 22% in the fourth quarter of fiscal 2014.
- The valuation allowance was $635.3 million as of October 31,
2015. The valuation allowance is a non-cash reserve against the tax
assets for GAAP purposes. For tax purposes, the tax deductions
associated with the tax assets may be carried forward for 20 years
from the date the deductions were incurred.
- During November 2015, the dollar value of net contracts,
including unconsolidated joint ventures, increased 26.9% to $220.1
million compared with $173.5 million for November of 2014 and the
number of net contracts, including unconsolidated joint ventures,
increased 22.5% to 517 homes in November 2015 from 422 homes
in November 2014. During November 2015, the dollar value of
consolidated net contracts increased 16.3% to $194.6 million
compared with $167.3 million for November of 2014 and the number of
consolidated net contracts increased 16.9% to 477 homes in November
2015 from 408 homes in November 2014.
LIQUIDITY AND INVENTORY AS OF OCTOBER 31,
2015:
- During the fourth quarter of fiscal 2015, land and land
development spending was $192.1 million. For the year ended October
31, 2015, land and land development spending was $656.5 million.
- After paying off $60.8 million of debt that matured on October
15, 2015, total liquidity at the end of the fourth quarter of
fiscal 2015 was $250.1 million compared with $309.2 million at
October 31, 2014.
- As of October 31, 2015, the land position, including
unconsolidated joint ventures, was 37,659 lots, consisting of
16,441 lots under option and 21,218 owned lots, compared with a
total of 37,558 lots as of October 31, 2014.
- During the fourth quarter of fiscal 2015, approximately 3,500
lots, including unconsolidated joint ventures, were put under
option or acquired in 49 communities.
FINANCIAL GUIDANCE:
- Assuming no changes in current market conditions, we reiterate
our prior guidance that total revenues for all of fiscal 2016 are
expected to be between $2.7 billion and $3.1 billion and pretax
profit excluding land related charges, gains or losses on
extinguishment of debt and other non-recurring items such as legal
settlements are expected to be between $40 million and $100 million
for all of fiscal 2016.
COMMENTS FROM MANAGEMENT:
"We were pleased that we exceeded the guidance we gave for gross
margin percentage, total SG&A ratio and adjusted
pretax profit for the fourth quarter of fiscal 2015, despite
some delays in delivering homes primarily related to longer cycle
times in certain markets," stated Ara K. Hovnanian, Chairman of the
Board, President and Chief Executive Officer. "Our 71% growth in
inventory over the past three years combined with the 49%
year-over-year increase we achieved in our contract backlog dollars
at October 31, 2015, and the 29% year-over-year increase in net
contract dollars during the fourth quarter of fiscal 2015, gives us
confidence in our ability to significantly increase revenues and
profitability during fiscal 2016. Given the $300 million of land
banking arrangements that we recently announced, we are comfortable
with our liquidity position as we begin fiscal 2016," concluded Mr.
Hovnanian.
WEBCAST INFORMATION:
Hovnanian Enterprises will webcast its fiscal 2015 fourth
quarter financial results conference call at 11:00 a.m. E.T. on
Friday, December 4, 2015. 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 Red Bank, New Jersey. The Company is
one of the nation's largest homebuilders with operations in
Arizona, California, Delaware, Florida, Georgia, Illinois,
Maryland, Minnesota, New Jersey, North Carolina, Ohio,
Pennsylvania, South Carolina, Texas, Virginia, Washington, D.C. and
West Virginia. The Company's homes are marketed and sold under the
trade names K. Hovnanian® Homes®, Brighton Homes® and Parkwood
Builders. As the developer of K. Hovnanian's® Four Seasons
communities, the Company is also one of the nation's largest
builders of active adult homes.
Additional information on Hovnanian Enterprises, Inc., including
a summary investment profile and the Company's 2014 annual report,
can be accessed through the "Investor Relations" section of the
Hovnanian Enterprises' website at http://www.khov.com. To be added
to Hovnanian's investor e-mail 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 on extinguishment of debt ("Adjusted EBITDA") are not U.S.
generally accepted accounting principles (GAAP) financial measures.
The most directly comparable GAAP financial measure is net income
(loss). The reconciliation of EBIT, EBITDA and Adjusted EBITDA to
net income (loss) is presented in a table attached to this earnings
release.
Income (Loss) Before Income Taxes Excluding Land-Related
Charges and Loss on Extinguishment of Debt is a non-GAAP financial
measure. The most directly comparable GAAP financial measure is
Income (Loss) Before Income Taxes. The reconciliation of Income
(Loss) Before Income Taxes Excluding Land-Related Charges and Loss
on Extinguishment of Debt to Income (Loss) Before
Income Taxes is presented in a table attached to this earnings
release.
Total liquidity is comprised of $245.4 million
of cash and cash equivalents, $2.6 million of restricted cash
required to collateralize letters of credit and $2.1 million of
availability under the unsecured revolving credit facility as of
October 31, 2015.
Net Income (Loss) Before Tax Benefit from the Reduction
of Deferred Tax Asset Valuation Allowance is a non-GAAP financial
measure. The most directly comparable GAAP financial measure is Net
Income (Loss). The reconciliation of Net Income (Loss)
Before Tax Benefit from the Reduction of Deferred
Tax Asset Valuation Allowance to Net Income (Loss) is presented in
a table attached to this earnings release.
FORWARD-LOOKING STATEMENTS
All statements in this press release that are not
historical facts should be considered as "forward-looking
statements" within the meaning of the "Safe Harbor" provision 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 the
current or future periods, including total revenues and adjusted
pre-tax profit. 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 the sustained homebuilding
downturn; (2) adverse weather and other environmental conditions
and natural disasters; (3) levels of indebtedness and restrictions
on the Company's operations and activities imposed by the
agreements governing the Company's outstanding indebtedness; (4)
the Company's sources of liquidity; (5) changes in credit ratings;
(6) changes in market conditions and seasonality of the Company's
business; (7) the availability and cost of suitable land and
improved lots; (8) shortages in, and price fluctuations of, raw
materials and labor; (9) 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; (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) operations through joint ventures with third parties; (13)
government regulation, including regulations concerning development
of land, the home building, sales and customer financing processes,
tax laws and the environment; (14) product liability litigation,
warranty claims and claims made by mortgage investors; (15) levels
of competition; (16) availability and terms of financing to the
Company; (17) successful identification and integration of
acquisitions; (18) significant influence of the Company's
controlling stockholders; (19) availability of net operating loss
carryforwards; (20) utility shortages and outages or rate
fluctuations; (21) geopolitical risks, terrorist acts and other
acts of war; and (22) 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, 2014 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.
(Financial Tables Follow)
Hovnanian Enterprises,
Inc. |
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October 31, 2015 |
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Statements of Consolidated Operations |
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(Dollars in Thousands, Except Per Share
Data) |
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|
Three Months Ended |
Twelve Months Ended |
|
October 31, |
October 31, |
|
2015 |
2014 |
2015 |
2014 |
|
(Unaudited) |
(Unaudited) |
Total Revenues |
$693,204 |
$698,394 |
$2,148,480 |
$2,063,380 |
Costs and Expenses (a) |
657,506 |
666,446 |
2,174,414 |
2,049,942 |
Loss on Extinguishment of Debt |
-- |
-- |
-- |
(1,155) |
Income from Unconsolidated Joint
Ventures |
1,699 |
4,048 |
4,169 |
7,897 |
Income (Loss) Before Income Taxes |
37,397 |
35,996 |
(21,765) |
20,180 |
Income Tax Provision (Benefit) |
11,878 |
(286,468) |
(5,665) |
(286,964) |
Net Income (Loss) |
$25,519 |
$322,464 |
$(16,100) |
$307,144 |
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Per Share Data: |
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Basic: |
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|
Income (Loss) Per Common Share |
$0.17 |
$2.15 |
$(0.11) |
$2.05 |
Weighted Average Number of Common Shares
Outstanding (b) |
147,057 |
146,413 |
146,899 |
146,271 |
Assuming Dilution: |
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|
|
|
Income (Loss) Per Common Share |
$0.16 |
$1.95 |
$(0.11) |
$1.87 |
Weighted Average Number of Common Shares
Outstanding (b) |
160,299 |
161,720 |
146,899 |
162,441 |
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(a) Includes inventory impairment loss
and land option write-offs. |
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|
(b) For periods with a net
loss, basic shares are used in accordance with GAAP rules. |
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Hovnanian Enterprises,
Inc. |
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October 31, 2015 |
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Reconciliation of Income (Loss)
Before Income Taxes Excluding Land-Related Charges and Loss on
Extinguishment of Debt to Income (Loss) Before Income Taxes |
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(Dollars in Thousands) |
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Three Months Ended |
Twelve Months Ended |
|
October 31, |
October 31, |
|
2015 |
2014 |
2015 |
2014 |
|
(Unaudited) |
(Unaudited) |
Income (Loss) Before Income Taxes |
$37,397 |
$35,996 |
$(21,765) |
$20,180 |
Inventory Impairment Loss and Land Option
Write-Offs |
4,426 |
3,297 |
12,044 |
5,224 |
Loss on Extinguishment of Debt |
-- |
-- |
-- |
1,155 |
Income (Loss) Before Income Taxes Excluding
Land-Related Charges and Loss on Extinguishment of Debt (a) |
$41,823 |
$39,293 |
$(9,721) |
$26,559 |
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|
(a) Income (Loss) Before Income
Taxes Excluding Land-Related Charges and Loss on Extinguishment of
Debt is a non-GAAP financial measure. The most directly comparable
GAAP financial measure is Income (Loss) Before Income Taxes. |
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Hovnanian Enterprises,
Inc. |
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October 31, 2015 |
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Gross Margin |
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(Dollars in Thousands) |
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Homebuilding Gross Margin |
Homebuilding Gross Margin |
|
Three Months Ended |
Twelve Months Ended |
|
October 31, |
October 31, |
|
2015 |
2014 |
2015 |
2014 |
|
(Unaudited) |
(Unaudited) |
Sale of Homes |
$673,330 |
$681,523 |
$2,088,129 |
$2,013,013 |
Cost of Sales, Excluding Interest and Land
Charges (a) |
552,462 |
550,242 |
1,721,336 |
1,612,122 |
Homebuilding Gross Margin, Excluding Interest
and Land Charges |
120,868 |
131,281 |
366,793 |
400,891 |
Homebuilding Cost of Sales Interest |
19,959 |
15,854 |
59,574 |
53,101 |
Homebuilding Gross Margin, Including Interest
and Excluding Land Charges |
$100,909 |
$115,427 |
$307,219 |
$347,790 |
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Gross Margin Percentage, Excluding Interest
and Land Charges |
18.0% |
19.3% |
17.6% |
19.9% |
Gross Margin Percentage, Including Interest
and Excluding Land Charges |
15.0% |
16.9% |
14.7% |
17.3% |
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Land Sales Gross Margin |
Land Sales Gross Margin |
|
Three Months Ended |
Twelve Months Ended |
|
October 31, |
October 31, |
|
2015 |
2014 |
2015 |
2014 |
|
(Unaudited) |
(Unaudited) |
Land and Lot Sales |
-- |
$2,327 |
$850 |
$5,224 |
Cost of Sales, Excluding Interest and Land
Charges (a) |
-- |
1,492 |
702 |
3,077 |
Land and Lot Sales Gross Margin, Excluding
Interest and Land Charges |
-- |
835 |
148 |
2,147 |
Land and Lot Sales Interest |
-- |
388 |
39 |
865 |
Land and Lot Sales Gross Margin, Including
Interest and Excluding Land Charges |
-- |
$447 |
$109 |
$1,282 |
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(a) Does not include cost
associated with walking away from land options or inventory
impairment losses which are recorded as Inventory impairment loss
and land option write-offs in the Consolidated Statements of
Operations. |
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Hovnanian Enterprises,
Inc. |
October 31,
2015 |
Reconciliation of Net Income
(Loss) Before Tax Benefit from the Reduction of Deferred Tax
Asset |
Valuation Allowance to Net Income
(Loss) |
(Dollars in Thousands) |
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|
Three Months Ended |
Twelve Months Ended |
|
October 31, |
October 31, |
|
2015 |
2014 |
2015 |
2014 |
|
(Unaudited) |
(Unaudited) |
Net Income (Loss) |
$25,519 |
$322,464 |
$(16,100) |
$307,144 |
Tax Benefit from the Reduction of Deferred
Tax Asset Valuation Allowance |
-- |
285,131 |
-- |
285,131 |
Net Income (Loss) Before Tax Benefit from the
Reduction of Deferred Tax Asset Valuation Allowance (a) |
$25,519 |
$37,333 |
$(16,100) |
$22,013 |
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Assuming Dilution: |
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Income (Loss) Before Tax Benefit from the
Reduction of Deferred Tax Asset Valuation Allowance Per Common
Share |
$0.16 |
$0.23 |
$(0.11) |
$0.14 |
Weighted Average Number of Common Shares
Outstanding (b) |
160,299 |
161,720 |
146,899 |
162,441 |
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(a) Net Income (Loss) Before Tax
Benefit from the Reduction of Deferred Tax Asset Valuation
Allowance is a non-GAAP financial measure. The most directly
comparable GAAP financial measure is Net Income (Loss). |
(b) For periods with a net loss,
basic shares are used in accordance with GAAP rules. |
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Hovnanian Enterprises,
Inc. |
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October 31, 2015 |
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Reconciliation of Adjusted EBITDA to Net
Income (Loss) |
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(Dollars in Thousands) |
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Three Months Ended |
Twelve Months Ended |
|
October 31, |
October 31, |
|
2015 |
2014 |
2015 |
2014 |
|
(Unaudited) |
(Unaudited) |
Net Income (loss) |
$25,519 |
$322,464 |
$(16,100) |
$307,144 |
Income Tax Provision (Benefit) |
11,878 |
(286,468) |
(5,665) |
(286,964) |
Interest Expense |
41,200 |
36,935 |
151,448 |
141,344 |
EBIT (a) |
78,597 |
72,931 |
129,683 |
161,524 |
Depreciation |
835 |
846 |
3,388 |
3,417 |
Amortization of Debt Costs |
1,008 |
1,152 |
5,459 |
4,392 |
EBITDA (b) |
80,440 |
74,929 |
138,530 |
169,333 |
Inventory Impairment Loss and Land Option
Write-offs |
4,426 |
3,297 |
12,044 |
5,224 |
Loss on Extinguishment of Debt |
-- |
-- |
-- |
1,155 |
Adjusted EBITDA (c) |
$84,866 |
$78,226 |
$150,574 |
$175,712 |
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Interest Incurred |
$42,157 |
$37,336 |
$166,188 |
$145,409 |
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Adjusted EBITDA to Interest Incurred |
2.01 |
2.10 |
0.91 |
1.21 |
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(a) EBIT is a non-GAAP financial
measure. The most directly comparable GAAP financial measure is net
income (loss). EBIT represents earnings before interest expense and
income taxes. |
(b) EBITDA is a non-GAAP
financial measure. The most directly comparable GAAP financial
measure is net income (loss). EBITDA represents earnings before
interest expense, income taxes, depreciation and amortization. |
(c) Adjusted EBITDA is a non-GAAP
financial measure. The most directly comparable GAAP financial
measure is net income (loss). Adjusted EBITDA represents earnings
before interest expense, income taxes, depreciation, amortization,
inventory impairment loss and land option write-offs and loss on
extinguishment of debt. |
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Hovnanian Enterprises,
Inc. |
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October 31, 2015 |
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Interest Incurred, Expensed and
Capitalized |
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(Dollars in Thousands) |
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Three Months Ended |
Twelve Months Ended |
|
October 31, |
October 31, |
|
2015 |
2014 |
2015 |
2014 |
|
(Unaudited) |
(Unaudited) |
Interest Capitalized at Beginning of
Period |
$122,941 |
$108,757 |
$109,158 |
$105,093 |
Plus Interest Incurred |
42,157 |
37,336 |
166,188 |
145,409 |
Less Interest Expensed |
41,200 |
36,935 |
151,448 |
141,344 |
Interest Capitalized at End of Period
(a) |
$123,898 |
$109,158 |
$123,898 |
$109,158 |
|
|
|
|
|
(a) Capitalized interest amounts
are shown gross before allocating any portion of impairments to
capitalized interest. |
|
|
HOVNANIAN ENTERPRISES, INC. AND
SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands) |
|
|
|
|
October 31, 2015 |
October 31, 2014 |
|
(Unaudited) |
(1) |
ASSETS |
|
|
|
|
|
Homebuilding: |
|
|
Cash and cash equivalents |
$245,398 |
$255,117 |
Restricted cash and cash equivalents |
7,299 |
13,086 |
Inventories: |
|
|
Sold and unsold homes and lots under
development |
1,307,850 |
961,994 |
Land and land options held for future
development or sale |
214,503 |
273,463 |
Consolidated inventory not owned: |
|
|
Specific performance options |
1,242 |
3,479 |
Other options |
120,983 |
105,374 |
Total consolidated inventory not
owned |
122,225 |
108,853 |
Total inventories |
1,644,578 |
1,344,310 |
Investments in and advances to unconsolidated
joint ventures |
61,209 |
63,883 |
Receivables, deposits and notes, net |
70,349 |
92,546 |
Property, plant and equipment, net |
45,534 |
46,744 |
Prepaid expenses and other assets |
77,671 |
69,358 |
Total homebuilding |
2,152,038 |
1,885,044 |
|
|
|
Financial services: |
|
|
Cash and cash equivalents |
8,347 |
6,781 |
Restricted cash and cash equivalents |
19,223 |
16,236 |
Mortgage loans held for sale at fair
value |
130,320 |
95,338 |
Other assets |
2,091 |
1,988 |
Total financial services |
159,981 |
120,343 |
Income taxes receivable – including net
deferred tax benefits |
290,279 |
284,543 |
Total assets |
$2,602,298 |
$2,289,930 |
|
|
|
(1) Derived from the audited
balance sheet as of October 31, 2014 |
|
|
HOVNANIAN ENTERPRISES, INC. AND
SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands Except Share
Amounts) |
|
|
|
|
October 31, 2015 |
October 31, 2014 |
|
(Unaudited) |
(1) |
LIABILITIES AND EQUITY |
|
|
|
|
|
Homebuilding: |
|
|
Nonrecourse land mortgages |
$143,863 |
$103,908 |
Accounts payable and other
liabilities |
348,516 |
370,876 |
Customers' deposits |
44,218 |
34,969 |
Nonrecourse mortgages secured by
operating properties |
15,511 |
16,619 |
Liabilities from inventory not owned |
105,856 |
92,381 |
Total homebuilding |
657,964 |
618,753 |
|
|
|
Financial services: |
|
|
Accounts payable and other
liabilities |
27,908 |
22,278 |
Mortgage warehouse line of credit |
108,875 |
76,919 |
Total financial services |
136,783 |
99,197 |
|
|
|
Notes payable: |
|
|
Revolving credit agreement |
47,000 |
-- |
Senior secured notes, net of
discount |
981,346 |
979,935 |
Senior notes, net of discount |
780,319 |
590,472 |
Senior amortizing notes |
12,811 |
17,049 |
Senior exchangeable notes |
73,771 |
70,101 |
Accrued interest |
40,388 |
32,222 |
Total notes payable |
1,935,635 |
1,689,779 |
Total liabilities |
2,730,382 |
2,407,729 |
|
|
|
Equity: |
|
|
Stockholders' equity deficit: |
|
|
Preferred stock, $.01 par value -
authorized 100,000 shares; issued 5,600 shares with a liquidation
preference of $140,000 at October 31, 2015 and at October 31,
2014 |
135,299 |
135,299 |
Common stock, Class A, $.01 par value –
authorized 400,000,000 shares; issued 143,292,881 shares at October
31, 2015 and 142,836,563 shares at October 31, 2014 (including
11,760,763 shares at October 31, 2015 and October 31, 2014,
respectively, held in Treasury) |
1,433 |
1,428 |
Common stock, Class B, $.01 par value
(convertible to Class A at time of sale) – authorized 60,000,000
shares; issued 15,676,829 shares at October 31, 2015 and 15,497,543
shares at October 31, 2014 (including 691,748 shares at October 31,
2015 and October 31, 2014 held in Treasury) |
157 |
155 |
Paid in capital - common stock |
703,751 |
697,943 |
Accumulated deficit |
(853,364) |
(837,264) |
Treasury stock - at cost |
(115,360) |
(115,360) |
Total stockholders' equity deficit |
(128,084) |
(117,799) |
Total liabilities and equity |
$2,602,298 |
$2,289,930 |
|
|
|
(1) Derived from the audited
balance sheet as of October 31, 2014 |
|
|
HOVNANIAN ENTERPRISES, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands
Except Per Share Data) (Unaudited) |
|
|
|
|
|
|
Three Months Ended October
31, |
Twelve Months Ended October
31, |
|
2015 |
2014 |
2015 |
2014 |
Revenues: |
|
|
|
|
Homebuilding: |
|
|
|
|
Sale of homes |
$673,330 |
$681,523 |
$2,088,129 |
$2,013,013 |
Land sales and other revenues |
1,148 |
3,069 |
3,686 |
7,953 |
Total homebuilding |
674,478 |
684,592 |
2,091,815 |
2,020,966 |
Financial services |
18,726 |
13,802 |
56,665 |
42,414 |
Total revenues |
693,204 |
698,394 |
2,148,480 |
2,063,380 |
|
|
|
|
|
Expenses: |
|
|
|
|
Homebuilding: |
|
|
|
|
Cost of sales, excluding interest |
552,462 |
551,734 |
1,722,038 |
1,615,199 |
Cost of sales interest |
19,959 |
16,242 |
59,613 |
53,966 |
Inventory impairment loss and
land option write-offs |
4,426 |
3,297 |
12,044 |
5,224 |
Total cost of sales |
576,847 |
571,273 |
1,793,695 |
1,674,389 |
Selling, general and administrative |
36,145 |
48,619 |
188,403 |
191,537 |
Total homebuilding expenses |
612,992 |
619,892 |
1,982,098 |
1,865,926 |
|
|
|
|
|
Financial services |
8,903 |
8,025 |
31,972 |
28,616 |
Corporate general and administrative |
13,231 |
16,538 |
62,506 |
63,375 |
Other interest |
21,241 |
20,693 |
91,835 |
87,378 |
Other operations |
1,139 |
1,298 |
6,003 |
4,647 |
Total expenses |
657,506 |
666,446 |
2,174,414 |
2,049,942 |
Loss on extinguishment of debt |
-- |
-- |
-- |
(1,155) |
Income from unconsolidated joint
ventures |
1,699 |
4,048 |
4,169 |
7,897 |
Income (loss)
before income taxes |
37,397 |
35,996 |
(21,765) |
20,180 |
State and federal income tax
provision (benefit): |
|
|
|
|
State |
576 |
(13,936) |
4,293 |
(12,452) |
Federal |
11,302 |
(272,532) |
(9,958) |
(274,512) |
Total income taxes |
11,878 |
(286,468) |
(5,665) |
(286,964) |
Net income (loss) |
$25,519 |
$322,464 |
$(16,100) |
$307,144 |
|
|
|
|
|
Per share data: |
|
|
|
|
Basic: |
|
|
|
|
Income (loss)
per common share |
$0.17 |
$2.15 |
$(0.11) |
$2.05 |
Weighted-average number of common
shares outstanding |
147,057 |
146,413 |
146,899 |
146,271 |
Assuming dilution: |
|
|
|
|
Income (loss)
per common share |
$0.16 |
$1.95 |
$(0.11) |
$1.87 |
Weighted-average number of common
shares outstanding |
160,299 |
161,720 |
146,899 |
162,441 |
|
|
|
|
|
|
|
|
|
|
|
HOVNANIAN ENTERPRISES,
INC. |
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT DATA EXCLUDES UNCONSOLIDATED JOINT
VENTURES) |
|
Communities
Under Development |
(UNAUDITED) |
|
Three
Months - October 31, 2015 |
|
|
Net
Contracts |
Deliveries |
Contract |
|
|
Three Months
Ended |
Three Months
Ended |
Backlog |
|
|
Oct
31, |
Oct
31, |
Oct
31, |
|
|
2015 |
2014 |
% Change |
2015 |
2014 |
% Change |
2015 |
2014 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(NJ, PA) |
Home |
143 |
102 |
40.2% |
136 |
182 |
(25.3)% |
293 |
146 |
100.7% |
|
Dollars |
$66,846 |
$51,176 |
30.6% |
$63,175 |
$95,886 |
(34.1)% |
$147,004 |
$73,327 |
100.5% |
|
Avg. Price |
$467,455 |
$501,725 |
(6.8)% |
$464,522 |
$526,845 |
(11.8)% |
$501,719 |
$502,240 |
(0.1)% |
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(DE, MD, VA, WV) |
Home |
236 |
190 |
24.2% |
256 |
244 |
4.9% |
453 |
371 |
22.1% |
|
Dollars |
$114,191 |
$96,981 |
17.7% |
$127,233 |
$113,144 |
12.5% |
$239,099 |
$188,923 |
26.6% |
|
Avg. Price |
$483,860 |
$510,425 |
(5.2)% |
$497,004 |
$463,709 |
7.2% |
$527,812 |
$509,227 |
3.6% |
Midwest |
|
|
|
|
|
|
|
|
|
|
(IL, MN, OH) |
Home |
232 |
233 |
(0.4)% |
284 |
263 |
8.0% |
644 |
665 |
(3.2)% |
|
Dollars |
$73,693 |
$77,917 |
(5.4)% |
$91,122 |
$78,203 |
16.5% |
$194,290 |
$188,595 |
3.0% |
|
Avg. Price |
$317,640 |
$334,406 |
(5.0)% |
$320,852 |
$297,354 |
7.9% |
$301,692 |
$283,601 |
6.4% |
Southeast |
|
|
|
|
|
|
|
|
|
|
(FL, GA, NC, SC) |
Home |
168 |
149 |
12.8% |
220 |
178 |
23.6% |
279 |
232 |
20.3% |
|
Dollars |
$58,382 |
$51,495 |
13.4% |
$63,074 |
$57,297 |
10.1% |
$105,935 |
$81,071 |
30.7% |
|
Avg. Price |
$347,512 |
$345,603 |
0.6% |
$286,698 |
$321,895 |
(10.9)% |
$379,699 |
$349,443 |
8.7% |
Southwest |
|
|
|
|
|
|
|
|
|
|
(AZ, TX) |
Home |
571 |
547 |
4.4% |
686 |
747 |
(8.2)% |
1,033 |
770 |
34.2% |
|
Dollars |
$216,371 |
$194,178 |
11.4% |
$262,713 |
$254,668 |
3.2% |
$422,711 |
$295,319 |
43.1% |
|
Avg. Price |
$378,933 |
$354,988 |
6.7% |
$382,963 |
$340,919 |
12.3% |
$409,207 |
$383,532 |
6.7% |
West |
|
|
|
|
|
|
|
|
|
|
(CA) |
Home |
185 |
80 |
131.3% |
145 |
148 |
(2.0)% |
203 |
45 |
351.1% |
|
Dollars |
$95,419 |
$40,030 |
138.4% |
$66,013 |
$82,325 |
(19.8)% |
$106,886 |
$28,612 |
273.6% |
|
Avg. Price |
$515,780 |
$500,375 |
3.1% |
$455,262 |
$556,248 |
(18.2)% |
$526,531 |
$635,822 |
(17.2)% |
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
1,535 |
1,301 |
18.0% |
1,727 |
1,762 |
(2.0)% |
2,905 |
2,229 |
30.3% |
|
Dollars |
$624,902 |
$511,777 |
22.1% |
$673,330 |
$681,523 |
(1.2)% |
$1,215,925 |
$855,847 |
42.1% |
|
Avg. Price |
$407,102 |
$393,372 |
3.5% |
$389,884 |
$386,789 |
0.8% |
$418,563 |
$383,960 |
9.0% |
Unconsolidated Joint
Ventures |
|
|
|
|
|
|
|
|
|
|
|
Home |
94 |
49 |
91.8% |
65 |
154 |
(57.8)% |
207 |
112 |
84.8% |
|
Dollars |
$59,441 |
$20,133 |
195.2% |
$37,730 |
$58,712 |
(35.7)% |
$132,082 |
$49,123 |
168.9% |
|
Avg. Price |
$632,347 |
$410,877 |
53.9% |
$580,467 |
$381,245 |
52.3% |
$638,077 |
$438,601 |
45.5% |
Grand Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
1,629 |
1,350 |
20.7% |
1,792 |
1,916 |
(6.5)% |
3,112 |
2,341 |
32.9% |
|
Dollars |
$684,343 |
$531,910 |
28.7% |
$711,060 |
$740,235 |
(3.9)% |
$1,348,007 |
$904,970 |
49.0% |
|
Avg. Price |
$420,100 |
$394,008 |
6.6% |
$396,797 |
$386,344 |
2.7% |
$433,164 |
$386,574 |
12.1% |
|
|
|
|
|
|
|
|
|
|
|
DELIVERIES INCLUDE EXTRAS |
|
|
|
|
|
|
|
|
|
|
Notes: |
|
|
|
|
|
|
|
|
|
|
(1) Net contracts
are defined as new contracts signed during the period for the
purchase of homes, less cancellations of prior contracts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOVNANIAN ENTERPRISES, INC. |
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT DATA EXCLUDES UNCONSOLIDATED JOINT
VENTURES) |
|
Communities
Under Development |
(UNAUDITED) |
|
Twelve Months - October 31, 2015 |
|
|
Net
Contracts |
Deliveries |
Contract |
|
|
Twelve Months
Ended |
Twelve Months
Ended |
Backlog |
|
|
Oct
31, |
Oct
31, |
Oct
31, |
|
|
2015 |
2014 |
% Change |
2015 |
2014 |
% Change |
2015 |
2014 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(NJ, PA) |
Home |
527 |
476 |
10.7% |
380 |
550 |
(30.9)% |
293 |
146 |
100.7% |
|
Dollars |
$262,726 |
$243,055 |
8.1% |
$189,049 |
$274,734 |
(31.3)% |
$147,004 |
$73,327 |
100.5% |
|
Avg. Price |
$498,531 |
$510,620 |
(2.4)% |
$497,497 |
$499,516 |
(0.4)% |
$501,719 |
$502,240 |
(0.1)% |
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(DE, MD, VA, WV) |
Home |
936 |
801 |
16.9% |
854 |
701 |
21.8% |
453 |
371 |
22.1% |
|
Dollars |
$448,307 |
$379,514 |
18.1% |
$398,132 |
$331,759 |
20.0% |
$239,099 |
$188,923 |
26.6% |
|
Avg. Price |
$478,961 |
$473,801 |
1.1% |
$466,197 |
$473,266 |
(1.5)% |
$527,812 |
$509,227 |
3.6% |
Midwest |
|
|
|
|
|
|
|
|
|
|
(IL, MN, OH) |
Home |
937 |
849 |
10.4% |
958 |
789 |
21.4% |
644 |
665 |
(3.2)% |
|
Dollars |
$317,059 |
$263,837 |
20.2% |
$311,364 |
$225,958 |
37.8% |
$194,290 |
$188,595 |
3.0% |
|
Avg. Price |
$338,376 |
$310,762 |
8.9% |
$325,015 |
$286,386 |
13.5% |
$301,692 |
$283,601 |
6.4% |
Southeast |
|
|
|
|
|
|
|
|
|
|
(FL, GA, NC, SC) |
Home |
722 |
576 |
25.3% |
675 |
652 |
3.5% |
279 |
232 |
20.3% |
|
Dollars |
$232,272 |
$185,035 |
25.5% |
$207,407 |
$202,620 |
2.4% |
$105,935 |
$81,071 |
30.7% |
|
Avg. Price |
$321,706 |
$321,241 |
0.1% |
$307,269 |
$310,768 |
(1.1)% |
$379,699 |
$349,443 |
8.7% |
Southwest |
|
|
|
|
|
|
|
|
|
|
(AZ, TX) |
Home |
2,526 |
2,482 |
1.8% |
2,263 |
2,389 |
(5.3)% |
1,033 |
770 |
34.2% |
|
Dollars |
$949,763 |
$826,707 |
14.9% |
$822,371 |
$747,753 |
10.0% |
$422,711 |
$295,319 |
43.1% |
|
Avg. Price |
$375,995 |
$333,081 |
12.9% |
$363,399 |
$312,998 |
16.1% |
$409,207 |
$383,532 |
6.7% |
West |
|
|
|
|
|
|
|
|
|
|
(CA) |
Home |
535 |
375 |
42.7% |
377 |
416 |
(9.4)% |
203 |
45 |
351.1% |
|
Dollars |
$238,080 |
$208,273 |
14.3% |
$159,806 |
$230,189 |
(30.6)% |
$106,886 |
$28,612 |
273.6% |
|
Avg. Price |
$445,010 |
$555,395 |
(19.9)% |
$423,889 |
$553,337 |
(23.4)% |
$526,531 |
$635,822 |
(17.2)% |
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
6,183 |
5,559 |
11.2% |
5,507 |
5,497 |
0.2% |
2,905 |
2,229 |
30.3% |
|
Dollars |
$2,448,207 |
$2,106,421 |
16.2% |
$2,088,129 |
$2,013,013 |
3.7% |
$1,215,925 |
$855,847 |
42.1% |
|
Avg. Price |
$395,958 |
$378,921 |
4.5% |
$379,177 |
$366,202 |
3.5% |
$418,563 |
$383,960 |
9.0% |
Unconsolidated Joint
Ventures |
|
|
|
|
|
|
|
|
|
|
|
Home |
364 |
324 |
12.3% |
269 |
437 |
(38.4)% |
207 |
112 |
84.8% |
|
Dollars |
$202,879 |
$127,270 |
59.4% |
$119,920 |
$164,082 |
(26.9)% |
$132,082 |
$49,123 |
168.9% |
|
Avg. Price |
$557,359 |
$392,809 |
41.9% |
$445,799 |
$375,475 |
18.7% |
$638,077 |
$438,601 |
45.5% |
Grand Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
6,547 |
5,883 |
11.3% |
5,776 |
5,934 |
(2.7)% |
3,112 |
2,341 |
32.9% |
|
Dollars |
$2,651,086 |
$2,233,691 |
18.7% |
$2,208,049 |
$2,177,095 |
1.4% |
$1,348,007 |
$904,970 |
49.0% |
|
Avg. Price |
$404,931 |
$379,686 |
6.6% |
$382,280 |
$366,885 |
4.2% |
$433,164 |
$386,574 |
12.1% |
|
|
|
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|
|
|
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|
|
DELIVERIES INCLUDE EXTRAS |
|
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|
|
|
|
|
|
|
Notes: |
|
|
|
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|
|
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|
(1) Net contracts
are defined as new contracts signed during the period for the
purchase of homes, less cancellations of prior contracts. |
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|
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|
HOVNANIAN ENTERPRISES, INC. |
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) |
|
(SEGMENT DATA INCLUDES UNCONSOLIDATED JOINT
VENTURES) |
|
Communities
Under Development |
(UNAUDITED) |
|
Three
Months - October 31, 2015 |
|
|
Net
Contracts |
Deliveries |
Contract |
|
|
Three Months
Ended |
Three Months
Ended |
Backlog |
|
|
Oct
31, |
Oct
31, |
Oct
31, |
|
|
2015 |
2014 |
% Change |
2015 |
2014 |
% Change |
2015 |
2014 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(includes unconsolidated joint ventures) |
Home |
156 |
105 |
48.6% |
141 |
193 |
(26.9)% |
341 |
166 |
105.4% |
(NJ, PA) |
Dollars |
$73,417 |
$52,988 |
38.6% |
$69,345 |
$98,668 |
(29.7)% |
$168,476 |
$81,581 |
106.5% |
|
Avg. Price |
$470,623 |
$504,648 |
(6.7)% |
$491,808 |
$511,233 |
(3.8)% |
$494,065 |
$491,447 |
0.5% |
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(includes unconsolidated joint ventures) |
Home |
244 |
202 |
20.8% |
288 |
296 |
(2.7)% |
467 |
406 |
15.0% |
(DE, MD, VA, WV) |
Dollars |
$118,957 |
$103,555 |
14.9% |
$145,192 |
$140,246 |
3.5% |
$246,906 |
$209,961 |
17.6% |
|
Avg. Price |
$487,533 |
$512,650 |
(4.9)% |
$504,141 |
$473,804 |
6.4% |
$528,707 |
$517,145 |
2.2% |
Midwest |
|
|
|
|
|
|
|
|
|
|
(includes unconsolidated joint ventures) |
Home |
232 |
235 |
(1.3)% |
284 |
288 |
(1.4)% |
644 |
682 |
(5.6)% |
(IL, MN, OH) |
Dollars |
$73,693 |
$78,603 |
(6.2)% |
$91,121 |
$85,032 |
7.2% |
$194,290 |
$193,260 |
0.5% |
|
Avg. Price |
$317,640 |
$334,481 |
(5.0)% |
$320,850 |
$295,251 |
8.7% |
$301,692 |
$283,373 |
6.5% |
Southeast |
|
|
|
|
|
|
|
|
|
|
(includes unconsolidated joint ventures) |
Home |
176 |
168 |
4.8% |
226 |
234 |
(3.4)% |
288 |
261 |
10.3% |
(FL, GA, NC, SC) |
Dollars |
$62,941 |
$58,601 |
7.4% |
$65,449 |
$75,978 |
(13.9)% |
$110,860 |
$92,992 |
19.2% |
|
Avg. Price |
$357,617 |
$348,814 |
2.5% |
$289,596 |
$324,692 |
(10.8)% |
$384,930 |
$356,293 |
8.0% |
Southwest |
|
|
|
|
|
|
|
|
|
|
(includes unconsolidated joint ventures) |
Home |
571 |
547 |
4.4% |
686 |
747 |
(8.2)% |
1,033 |
770 |
34.2% |
(AZ, TX) |
Dollars |
$216,371 |
$194,178 |
11.4% |
$262,713 |
$254,668 |
3.2% |
$422,711 |
$295,319 |
43.1% |
|
Avg. Price |
$378,932 |
$354,988 |
6.7% |
$382,963 |
$340,919 |
12.3% |
$409,207 |
$383,532 |
6.7% |
West |
|
|
|
|
|
|
|
|
|
|
(includes unconsolidated joint ventures) |
Home |
250 |
93 |
168.8% |
167 |
158 |
5.7% |
339 |
56 |
505.4% |
(CA) |
Dollars |
$138,964 |
$43,985 |
215.9% |
$77,240 |
$85,643 |
(9.8)% |
$204,764 |
$31,857 |
542.8% |
|
Avg. Price |
$555,857 |
$472,957 |
17.5% |
$462,513 |
$542,044 |
(14.7)% |
$604,024 |
$568,872 |
6.2% |
Grand Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
1,629 |
1,350 |
20.7% |
1,792 |
1,916 |
(6.5)% |
3,112 |
2,341 |
32.9% |
|
Dollars |
$684,343 |
$531,910 |
28.7% |
$711,060 |
$740,235 |
(3.9)% |
$1,348,007 |
$904,970 |
49.0% |
|
Avg. Price |
$420,100 |
$394,008 |
6.6% |
$396,797 |
$386,344 |
2.7% |
$433,164 |
$386,574 |
12.1% |
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
1,535 |
1,301 |
18.0% |
1,727 |
1,762 |
(2.0)% |
2,905 |
2,229 |
30.3% |
|
Dollars |
$624,902 |
$511,777 |
22.1% |
$673,330 |
$681,523 |
(1.2)% |
$1,215,925 |
$855,847 |
42.1% |
|
Avg. Price |
$407,102 |
$393,372 |
3.5% |
$389,884 |
$386,789 |
0.8% |
$418,563 |
$383,960 |
9.0% |
Unconsolidated Joint
Ventures |
|
|
|
|
|
|
|
|
|
|
|
Home |
94 |
49 |
91.8% |
65 |
154 |
(57.8)% |
207 |
112 |
84.8% |
|
Dollars |
$59,441 |
$20,133 |
195.2% |
$37,730 |
$58,712 |
(35.7)% |
$132,082 |
$49,123 |
168.9% |
|
Avg. Price |
$632,347 |
$410,877 |
53.9% |
$580,467 |
$381,245 |
52.3% |
$638,077 |
$438,601 |
45.5% |
|
|
|
|
|
|
|
|
|
|
|
DELIVERIES INCLUDE EXTRAS |
|
|
|
|
|
|
|
|
|
|
Notes: |
|
|
|
|
|
|
|
|
|
|
(1) Net contracts are defined
as new contracts signed during the period for the purchase of
homes, less cancellations of prior contracts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOVNANIAN ENTERPRISES, INC. |
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT DATA INCLUDES UNCONSOLIDATED JOINT
VENTURES) |
|
Communities
Under Development |
(UNAUDITED) |
|
Twelve Months - October 31, 2015 |
|
|
Net
Contracts |
Deliveries |
Contract |
|
|
Twelve Months
Ended |
Twelve Months
Ended |
Backlog |
|
|
Oct
31, |
Oct
31, |
Oct
31, |
|
|
2015 |
2014 |
% Change |
2015 |
2014 |
% Change |
2015 |
2014 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(includes unconsolidated joint ventures) |
Home |
577 |
530 |
8.9% |
402 |
597 |
(32.7)% |
341 |
166 |
105.4% |
(NJ, PA) |
Dollars |
$286,792 |
$264,303 |
8.5% |
$199,896 |
$293,970 |
(32.0)% |
$168,476 |
$81,581 |
106.5% |
|
Avg. Price |
$497,040 |
$498,684 |
(0.3)% |
$497,255 |
$492,413 |
1.0% |
$494,065 |
$491,447 |
0.5% |
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(includes unconsolidated joint ventures) |
Home |
1,006 |
925 |
8.8% |
945 |
860 |
9.9% |
467 |
406 |
15.0% |
(DE, MD, VA, WV) |
Dollars |
$485,551 |
$436,416 |
11.3% |
$448,605 |
$401,845 |
11.6% |
$246,906 |
$209,961 |
17.6% |
|
Avg. Price |
$482,654 |
$471,801 |
2.3% |
$474,714 |
$467,261 |
1.6% |
$528,707 |
$517,145 |
2.2% |
Midwest |
|
|
|
|
|
|
|
|
|
|
(includes unconsolidated joint ventures) |
Home |
940 |
891 |
5.5% |
978 |
863 |
13.3% |
644 |
682 |
(5.6)% |
(IL, MN, OH) |
Dollars |
$317,989 |
$275,550 |
15.4% |
$316,960 |
$246,224 |
28.7% |
$194,290 |
$193,260 |
0.5% |
|
Avg. Price |
$338,286 |
$309,260 |
9.4% |
$324,090 |
$285,312 |
13.6% |
$301,692 |
$283,373 |
6.5% |
Southeast |
|
|
|
|
|
|
|
|
|
|
(includes unconsolidated joint ventures) |
Home |
773 |
658 |
17.5% |
746 |
790 |
(5.6)% |
288 |
261 |
10.3% |
(FL, GA, NC, SC) |
Dollars |
$254,484 |
$215,186 |
18.3% |
$236,617 |
$247,928 |
(4.6)% |
$110,860 |
$92,992 |
19.2% |
|
Avg. Price |
$329,216 |
$327,031 |
0.7% |
$317,181 |
$313,832 |
1.1% |
$384,930 |
$356,293 |
8.0% |
Southwest |
|
|
|
|
|
|
|
|
|
|
(includes unconsolidated joint ventures) |
Home |
2,526 |
2,482 |
1.8% |
2,263 |
2,389 |
(5.3)% |
1,033 |
770 |
34.2% |
(AZ, TX) |
Dollars |
$949,763 |
$826,707 |
14.9% |
$822,371 |
$747,753 |
10.0% |
$422,711 |
$295,319 |
43.1% |
|
Avg. Price |
$375,995 |
$333,081 |
12.9% |
$363,399 |
$312,998 |
16.1% |
$409,207 |
$383,532 |
6.7% |
West |
|
|
|
|
|
|
|
|
|
|
(includes unconsolidated joint ventures) |
Home |
725 |
397 |
82.6% |
442 |
435 |
1.6% |
339 |
56 |
505.4% |
(CA) |
Dollars |
$356,507 |
$215,529 |
65.4% |
$183,600 |
$239,375 |
(23.3)% |
$204,764 |
$31,857 |
542.8% |
|
Avg. Price |
$491,734 |
$542,895 |
(9.4)% |
$415,384 |
$550,290 |
(24.5)% |
$604,024 |
$568,872 |
6.2% |
Grand Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
6,547 |
5,883 |
11.3% |
5,776 |
5,934 |
(2.7)% |
3,112 |
2,341 |
32.9% |
|
Dollars |
$2,651,086 |
$2,233,691 |
18.7% |
$2,208,049 |
$2,177,095 |
1.4% |
$1,348,007 |
$904,970 |
49.0% |
|
Avg. Price |
$404,931 |
$379,686 |
6.6% |
$382,280 |
$366,885 |
4.2% |
$433,164 |
$386,574 |
12.1% |
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
6,183 |
5,559 |
11.2% |
5,507 |
5,497 |
0.2% |
2,905 |
2,229 |
30.3% |
|
Dollars |
$2,448,207 |
$2,106,421 |
16.2% |
$2,088,129 |
$2,013,013 |
3.7% |
$1,215,925 |
$855,847 |
42.1% |
|
Avg. Price |
$395,958 |
$378,921 |
4.5% |
$379,177 |
$366,202 |
3.5% |
$418,563 |
$383,960 |
9.0% |
Unconsolidated Joint
Ventures |
|
|
|
|
|
|
|
|
|
|
|
Home |
364 |
324 |
12.3% |
269 |
437 |
(38.4)% |
207 |
112 |
84.8% |
|
Dollars |
$202,879 |
$127,270 |
59.4% |
$119,920 |
$164,082 |
(26.9)% |
$132,082 |
$49,123 |
168.9% |
|
Avg. Price |
$557,359 |
$392,809 |
41.9% |
$445,799 |
$375,475 |
18.7% |
$638,077 |
$438,601 |
45.5% |
|
|
|
|
|
|
|
|
|
|
|
DELIVERIES INCLUDE EXTRAS |
|
|
|
|
|
|
|
|
|
|
Notes: |
|
|
|
|
|
|
|
|
|
|
(1) Net contracts
are defined as new contracts signed during the period for the
purchase of homes, less cancellations of prior contracts. |
|
|
|
|
CONTACT: J. Larry Sorsby
Executive Vice President & CFO
732-747-7800
Jeffrey T. O'Keefe
Vice President, Investor Relations
732-747-7800
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