Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national
homebuilder, reported results for its fiscal second quarter and
six-month period ended April 30, 2020.
RESULTS FOR THE THREE-MONTH AND SIX-MONTH
PERIODS ENDED APRIL 30, 2020:
- Total revenues increased 22.2% to
$538.4 million in the second quarter of fiscal 2020, compared with
$440.7 million in the same period of the prior year. For the six
months ended April 30, 2020, total revenues increased 25.7% to
$1.03 billion compared with $821.3 million in the same period
during the prior fiscal year.
- Homebuilding gross margin
percentage, after cost of sales interest expense and land charges,
was 14.5% for the three months ended April 30, 2020 compared with
13.3% during the same quarter a year ago. During the first half of
fiscal 2020, homebuilding gross margin percentage, after cost of
sales interest expense and land charges, was 13.7% compared with
14.0% during the same period last year.
- Homebuilding gross margin
percentage, before cost of sales interest expense and land charges,
was 18.2% during the fiscal 2020 second quarter compared with 16.9%
in last year’s second quarter. For the six months ended April 30,
2020, homebuilding gross margin percentage, before cost of sales
interest expense and land charges, was 17.8% compared with 17.3% in
the same period of the previous fiscal year.
- Total SG&A was $55.9 million,
or 10.4% of total revenues, in the fiscal 2020 second quarter
compared with $60.3 million, or 13.7% of total revenues, in the
previous year’s second quarter. During the first six months of
fiscal 2020, total SG&A was $116.3 million, or 11.3% of total
revenues, compared with $120.7 million, or 14.7% of total revenues,
in the same period of the prior fiscal year.
- Interest incurred (some of which
was expensed and some of which was capitalized) was $45.3 million
for the second quarter of fiscal 2020 compared with $41.4 million
during the second quarter of fiscal 2019. For the six months ended
April 30, 2020, interest incurred (some of which was expensed and
some of which was capitalized) was $89.7 million compared with
$80.2 million during the same period last year.
- Income from unconsolidated joint
ventures was $6.2 million for the second quarter ended April 30,
2020 compared with $7.3 million in the fiscal 2019 second quarter.
For the first half of fiscal 2020, income from unconsolidated joint
ventures was $7.8 million compared with $16.8 million in the same
period a year ago.
- Income before income taxes for the
second quarter of fiscal 2020 was $4.2 million compared with a loss
of $14.9 million in the second quarter of the prior fiscal year.
For the first six months of fiscal 2020, the loss before income
taxes was $3.3 million compared with a loss of $32.0 million during
the same period of fiscal 2019.
- Net income was $4.1 million, or
$0.63 per common share, for the three months ended April 30, 2020
compared with a net loss of $15.3 million, or $2.56 per common
share, in the second quarter of the previous fiscal year. For the
first six months of fiscal 2020, net loss was $5.1 million, or
$0.82 per common share, compared with a net loss of $32.7 million,
or $5.49 per common share, in the same period during fiscal
2019.
- EBITDA increased 125.1% to $50.9
million for the second quarter of fiscal 2020 compared with $22.6
million in the same quarter of the prior year. For the first half
of fiscal 2020, EBITDA was $87.9 million, an 125.4% increase,
compared with $39.0 million in the first half of fiscal 2019.
- Adjusted EBITDA increased 116.3% to
$52.1 million in the second quarter ended April 30, 2020 compared
with $24.1 million in the same quarter one year ago. For the six
months ended April 30, 2020, adjusted EBITDA increased 100.3% to
$82.4 million compared with $41.2 million for the same period in
the prior fiscal year.
- Adjusted pretax income, which is
income before income taxes, excluding land-related charges and loss
(gain) on extinguishment of debt, improved to $5.4 million in the
second quarter of fiscal 2020 compared with a loss before these
items of $13.5 million in the fiscal 2019 second quarter. For the
six months ended April 30, 2020, loss before income taxes,
excluding land-related charges and loss (gain) on extinguishment of
debt, was $8.7 million compared with a loss before these items of
$29.9 million during the same period in fiscal 2019.
- Financial services income before
income taxes was $4.7 million for the second quarter of fiscal 2020
compared with $3.6 million in the second quarter of fiscal 2019.
For the first half of fiscal 2020, financial services income before
income taxes was $9.2 million compared with $4.8 million in the
same period one year ago.
- Consolidated contracts per
community increased 7.6% to 11.3 contracts per community for the
second quarter ended April 30, 2020 compared with 10.5 contracts
per community in last year’s second quarter. Contracts per
community, including domestic unconsolidated joint ventures(1),
were 10.6 for both the second quarter of fiscal 2020 and the second
quarter of fiscal 2019.
- The number of consolidated
contracts decreased 3.8% to 1,487 homes, during the fiscal 2020
second quarter, compared with 1,546 homes in last year’s second
quarter. The number of contracts, including domestic unconsolidated
joint ventures, for the three months ended April 30, 2020,
decreased 5.7% to 1,642 homes from 1,741 homes during the same
quarter a year ago.
- For the first half of fiscal 2020,
the number of consolidated contracts increased 13.3% to 2,809 homes
compared with 2,480 homes in the first half of fiscal 2019. The
number of contracts, including domestic unconsolidated joint
ventures, for the six months ended April 30, 2020, increased 11.6%
to 3,134 homes from 2,807 homes during the same period a year
ago.
- Consolidated community count was
132 as of April 30, 2020, compared with 147 communities at the end
of the previous year’s second quarter. The decline was primarily a
result of selling at a faster than anticipated pace, delayed
community openings and contributing four consolidated communities
to unconsolidated joint ventures earlier this year. As of the end
of the second quarter of fiscal 2020, community count, including
domestic unconsolidated joint ventures, was 155 communities,
compared with 164 communities at April 30, 2019.
- For May 2020, consolidated
contracts per community increased 43.2% to 5.3 compared with 3.7
for the same month one year ago. During May 2020, the number of
consolidated contracts increased 28.2% to 687 homes from 536 homes
in May 2019.
- The dollar value of consolidated
contract backlog, as of April 30, 2020, was $958.1 million compared
with $949.9 million as of April 30, 2019. The dollar value of
contract backlog, including domestic unconsolidated joint ventures,
as of April 30, 2020, was $1.13 billion compared with $1.17 billion
as of April 30, 2019.
- Consolidated deliveries were 1,325
homes in the fiscal 2020 second quarter, a 22.1% increase compared
with 1,085 homes in the previous year’s second quarter. For the
fiscal 2020 second quarter, deliveries, including domestic
unconsolidated joint ventures, increased 18.3% to 1,513 homes
compared with 1,279 homes during the second quarter of fiscal
2019.
- For the first half of fiscal 2020,
consolidated deliveries increased 24.8% to 2,561 homes compared
with 2,052 homes in the first six months of the previous year. For
the first half of fiscal 2020, deliveries, including domestic
unconsolidated joint ventures, increased 21.0% to 2,898 homes
compared with 2,395 homes during the same period of fiscal
2019.
- The contract cancellation rate for
consolidated contracts was 23% for the second quarter ended April
30, 2020 compared with 19% in the fiscal 2019 second quarter. The
contract cancellation rate for contracts including domestic
unconsolidated joint ventures was 23% for the second quarter of
fiscal 2020 compared with 19% in the second 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 APRIL
30, 2020:
- Total liquidity at the end of the
of the second quarter of fiscal 2020 was $247.1 million. The
Revolver was fully drawn down during the quarter as a precautionary
measure to maximize financial flexibility and increase the
Company’s cash position.
- During the second quarter of fiscal
2020, land and land development spending was $114.4 million, an
increase compared with $110.2 million in last year’s second
quarter. For the six months ended April 30, 2020, land and land
development spending was $232.3 million compared with $252.6
million for the same period one year ago.
- In the second quarter of fiscal
2020, 1,289 lots were put under option or acquired in 18
consolidated communities.
- As of April 30, 2020, consolidated
lots controlled totaled 26,734, which, based on trailing
twelve-month deliveries, equaled a 4.9 years’ supply.
COMMENTS FROM MANAGEMENT:
“In spite of the challenging effects the
COVID-19 pandemic had on the last half of our second quarter, our
total revenues increased 22%, our homebuilding gross margin
improved 120 basis points, adjusted EBITDA increased by 116% and
our adjusted pretax income was $5 million compared to a $13 million
loss in the previous year’s second quarter,” stated Ara K.
Hovnanian, Chairman of the Board, President and Chief Executive
Officer. “We are striving for even better performance in the
future. Fortunately, our contract pace has recently been
improving.”
“Notwithstanding the recent improvements in our
contract pace, given the high unemployment rate and uncertainty
surrounding the recovery of the overall economy, in the near term,
we maintain a cautious outlook. In response to COVID-19, we are
streamlining our organizational structure and reducing our
workforce. We expect these steps to result in approximately $20
million in annual overhead savings beginning in fiscal 2021. As the
market rebounds from the pandemic, we believe this new
organizational alignment should allow us to be even more cost
efficient in pursuing our growth plans and should result in a more
rapid repair of our balance sheet,” concluded Mr. Hovnanian.
“Given the uncertain economic environment, early
in the pandemic, we took measures to preserve our cash position by
delaying certain land purchases, land development activity and
beginning construction activity on some unsold homes. In light of
the improved contract pace in May, we are beginning to cautiously
move forward with our land and land development activities in most
markets. In spite of the adverse impacts of COVID-19, we remain
confident that we can pursue our long-term growth plans and still
maintain our liquidity within our targeted range of $170 million to
$245 million,” concluded Larry Sorsby, Executive Vice President and
Chief Financial Officer.
WEBCAST INFORMATION:
Hovnanian Enterprises will webcast its fiscal
2020 second quarter financial results conference call at 11:00 a.m.
E.T. on Thursday, June 4, 2020. 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 (loss). The reconciliation for
historical periods of EBIT, EBITDA and Adjusted EBITDA to net
income (loss) 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.
Income (loss) 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 (loss) before
income taxes. The reconciliation for historical periods of income
(loss) before income taxes excluding land-related charges and loss
(gain) 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 $232.8
million of cash and cash equivalents, $14.3 million of restricted
cash required to collateralize letters of credit and no
availability under the senior secured revolving credit facility as
of April 30, 2020.
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 material and adverse disruption, and the
expected continued disruption, to our business caused by the
present outbreak and worldwide spread of COVID-19 and the measures
that international, federal, state and local 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) high leverage and restrictions on the Company’s
operations and activities imposed by the agreements governing the
Company’s outstanding indebtedness; (5) availability and terms of
financing to the Company; (6) the Company’s sources of liquidity;
(7) changes in credit ratings; (8) the seasonality of the Company’s
business; (9) the availability and cost of suitable land and
improved lots and sufficient liquidity to invest in such land and
lots; (10) shortages in, and price fluctuations of, raw materials
and labor including due to changes in trade policies, such as the
imposition of tariffs and duties on homebuilding materials and
products, and related trade disputes with and retaliatory measures
taken by other countries; (11) reliance on, and the performance of,
subcontractors; (12) 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; (13) increases in cancellations of agreements
of sale; (14) fluctuations in interest rates and the availability
of mortgage financing; (15) changes in tax laws affecting the
after-tax costs of owning a home; (16) operations through
unconsolidated joint ventures with third parties; (17) government
regulation, including regulations concerning development of land,
the homebuilding, sales and customer financing processes, tax laws
and the environment; (18) legal claims brought against us and not
resolved in our favor, such as product liability litigation,
warranty claims and claims made by mortgage investors; (19) levels
of competition; (20) successful identification and integration of
acquisitions; (21) significant influence of the Company’s
controlling stockholders; (22) availability of net operating loss
carryforwards; (23) utility shortages and outages or rate
fluctuations; (24) geopolitical risks, terrorist acts and other
acts of war; (25) diseases, pandemics or other severe public health
events; (26) loss of key management personnel or failure to attract
qualified personnel; (27) information technology failures and data
security breaches; (28) negative publicity; and (29) 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, 2019 and the Company’s Quarterly Reports on Form 10-Q
for the quarterly periods during fiscal 2020 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. |
April 30,
2020 |
Statements of
consolidated operations |
(In thousands,
except per share data) |
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
April 30, |
|
April 30, |
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Total
revenues |
$538,351 |
|
|
$440,691 |
|
|
$1,032,407 |
|
|
$821,285 |
|
Costs and expenses
(1) |
|
540,219 |
|
|
|
462,855 |
|
|
|
1,052,707 |
|
|
|
870,117 |
|
(Loss) gain on
extinguishment of debt |
|
(174 |
) |
|
|
- |
|
|
|
9,282 |
|
|
|
- |
|
Income from
unconsolidated joint ventures |
|
6,221 |
|
|
|
7,252 |
|
|
|
7,761 |
|
|
|
16,814 |
|
Income (loss)
before income taxes |
|
4,179 |
|
|
|
(14,912 |
) |
|
|
(3,257 |
) |
|
|
(32,018 |
) |
Income tax
provision |
|
100 |
|
|
|
345 |
|
|
|
1,812 |
|
|
|
691 |
|
Net income
(loss) |
$4,079 |
|
|
$(15,257 |
) |
|
$(5,069 |
) |
|
$(32,709 |
) |
|
|
|
|
|
|
|
|
|
|
|
Per share
data: |
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share |
$0.63 |
|
|
$(2.56 |
) |
|
$(0.82 |
) |
|
$(5.49 |
) |
|
Weighted average
number of |
|
|
|
|
|
|
|
|
|
common shares
outstanding (2) |
|
6,172 |
|
|
|
5,962 |
|
|
|
6,166 |
|
|
|
5,960 |
|
Assuming
dilution: |
|
|
|
|
|
|
|
|
Net income (loss)
per common share |
$0.60 |
|
|
$(2.56 |
) |
|
$(0.82 |
) |
|
$(5.49 |
) |
|
Weighted average
number of |
|
|
|
|
|
|
|
|
|
common shares
outstanding (2) |
|
6,432 |
|
|
|
5,962 |
|
|
|
6,166 |
|
|
|
5,960 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
inventory impairment loss and land option write-offs. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) For periods
with a net (loss), basic shares are used in accordance with GAAP
rules. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hovnanian
Enterprises, Inc. |
April 30,
2020 |
Reconciliation of
income (loss) before income taxes excluding land-related charges
and loss (gain) on extinguishment of debt to income (loss) before
income taxes |
|
|
|
|
|
|
|
|
|
|
|
(In
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
April 30, |
|
April 30, |
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Income (loss)
before income taxes |
$4,179 |
|
|
$(14,912 |
) |
|
$(3,257 |
) |
|
$(32,018 |
) |
Inventory
impairment loss and land option write-offs |
|
1,010 |
|
|
|
1,462 |
|
|
|
3,838 |
|
|
|
2,166 |
|
Loss (gain) on
extinguishment of debt |
|
174 |
|
|
|
- |
|
|
|
(9,282 |
) |
|
|
- |
|
Income (loss)
before income taxes excluding land-related charges and loss (gain)
on extinguishment of debt (1) |
$5,363 |
|
|
$(13,450 |
) |
|
$(8,701 |
) |
|
$(29,852 |
) |
|
|
|
|
|
|
|
|
|
|
|
(1) Income (loss)
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 (loss) before
income taxes. |
Hovnanian
Enterprises, Inc. |
April 30,
2020 |
Gross margin |
(In
thousands) |
|
|
Homebuilding Gross Margin |
|
Homebuilding Gross Margin |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
April 30, |
|
April 30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Sale of homes |
|
$523,347 |
|
|
$427,552 |
|
|
$1,002,580 |
|
|
$789,687 |
|
Cost of sales, excluding
interest expense and land charges (1) |
|
|
427,944 |
|
|
|
355,477 |
|
|
|
824,262 |
|
|
|
653,047 |
|
Homebuilding gross
margin, before cost of sales interest expense and land charges
(2) |
|
95,403 |
|
|
|
72,075 |
|
|
|
178,318 |
|
|
|
136,640 |
|
Cost of sales
interest expense, excluding land sales interest expense |
|
18,537 |
|
|
|
13,898 |
|
|
|
36,673 |
|
|
|
24,140 |
|
Homebuilding gross
margin, after cost of sales interest expense, before land charges
(2) |
|
76,866 |
|
|
|
58,177 |
|
|
|
141,645 |
|
|
|
112,500 |
|
Land charges |
|
|
1,010 |
|
|
|
1,462 |
|
|
|
3,838 |
|
|
|
2,166 |
|
Homebuilding gross margin |
|
$75,856 |
|
|
$56,715 |
|
|
$137,807 |
|
|
$110,334 |
|
|
|
|
|
|
|
|
|
|
Gross margin percentage |
|
|
14.5 |
% |
|
|
13.3 |
% |
|
|
13.7 |
% |
|
|
14.0 |
% |
Gross margin
percentage, before cost of sales interest expense and land charges
(2) |
|
18.2 |
% |
|
|
16.9 |
% |
|
|
17.8 |
% |
|
|
17.3 |
% |
Gross margin
percentage, after cost of sales interest expense, before land
charges (2) |
|
14.7 |
% |
|
|
13.6 |
% |
|
|
14.1 |
% |
|
|
14.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land Sales Gross Margin |
|
Land Sales Gross Margin |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
April 30, |
|
April 30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Land and lot sales |
|
$50 |
|
|
|
$- |
|
|
$75 |
|
|
$7,508 |
|
Land and lot sales
cost of sales, excluding interest and land charges (1) |
|
83 |
|
|
|
- |
|
|
|
120 |
|
|
|
7,357 |
|
Land and lot sales
gross margin, excluding interest and land charges |
|
(33 |
) |
|
|
- |
|
|
|
(45 |
) |
|
|
151 |
|
Land and lot sales
interest |
|
|
52 |
|
|
|
- |
|
|
|
52 |
|
|
|
- |
|
Land and lot sales
gross margin, including interest and excluding land charges |
$(85 |
) |
|
|
$- |
|
|
$(97 |
) |
|
$151 |
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
|
|
|
|
|
|
April 30,
2020 |
|
|
|
|
|
|
|
|
Reconciliation of
adjusted EBITDA to net income (loss) |
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
April 30, |
|
April 30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Net income (loss) |
$4,079 |
|
|
$(15,257 |
) |
|
$(5,069 |
) |
|
$(32,709 |
) |
Income tax provision |
|
100 |
|
|
|
345 |
|
|
|
1,812 |
|
|
|
691 |
|
Interest expense |
|
45,458 |
|
|
|
36,561 |
|
|
|
88,597 |
|
|
|
69,076 |
|
EBIT (1) |
|
49,637 |
|
|
|
21,649 |
|
|
|
85,340 |
|
|
|
37,058 |
|
Depreciation and
amortization |
|
1,263 |
|
|
|
959 |
|
|
|
2,542 |
|
|
|
1,938 |
|
EBITDA (2) |
|
50,900 |
|
|
|
22,608 |
|
|
|
87,882 |
|
|
|
38,996 |
|
Inventory impairment loss and
land option write-offs |
|
1,010 |
|
|
|
1,462 |
|
|
|
3,838 |
|
|
|
2,166 |
|
Loss (gain) on extinguishment
of debt |
|
174 |
|
|
|
- |
|
|
|
(9,282 |
) |
|
|
- |
|
Adjusted EBITDA (3) |
$52,084 |
|
|
$24,070 |
|
|
$82,438 |
|
|
$41,162 |
|
|
|
|
|
|
|
|
|
|
Interest incurred |
$45,323 |
|
|
$41,383 |
|
|
$89,657 |
|
|
$80,236 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA to interest
incurred |
|
1.15 |
|
|
|
0.58 |
|
|
|
0.92 |
|
|
|
0.51 |
|
|
|
|
|
|
|
|
|
|
(1) 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. |
|
(2) 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. |
|
(3) 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 and amortization, inventory impairment loss and land
option write-offs and (loss) gain on extinguishment of debt. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hovnanian
Enterprises, Inc. |
April 30,
2020 |
Interest
incurred, expensed and capitalized |
(In
thousands) |
|
Three Months Ended |
|
Six Months Ended |
|
April 30, |
|
April 30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Interest capitalized at
beginning of period |
$67,879 |
|
|
$74,455 |
|
|
$71,264 |
|
|
$68,117 |
|
Plus interest incurred |
|
45,323 |
|
|
|
41,383 |
|
|
|
89,657 |
|
|
|
80,236 |
|
Less interest expensed |
|
45,458 |
|
|
|
36,561 |
|
|
|
88,597 |
|
|
|
69,076 |
|
Less interest contributed to
unconsolidated joint venture (1) |
|
- |
|
|
|
- |
|
|
|
4,580 |
|
|
|
- |
|
Interest capitalized at end of
period (2) |
$67,744 |
|
|
$79,277 |
|
|
$67,744 |
|
|
$79,277 |
|
|
|
|
|
|
|
|
|
|
(1) Represents
capitalized interest which was included as part of the assets
contributed to the joint venture the Company entered into in
December 2019. There was no impact to the Condensed Consolidated
Statement of Operations as a result of this transaction. |
|
(2) 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)
|
|
April 30, |
|
|
October 31, |
|
|
|
2020 |
|
|
2019 |
|
|
|
(Unaudited) |
|
|
(1) |
|
ASSETS |
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$232,801 |
|
|
$130,976 |
|
Restricted cash and cash equivalents |
|
|
16,052 |
|
|
|
20,905 |
|
Inventories: |
|
|
|
|
|
|
Sold and unsold homes and lots under development |
|
|
1,009,313 |
|
|
|
993,647 |
|
Land and land options held for future development or sale |
|
|
80,955 |
|
|
|
108,565 |
|
Consolidated inventory not owned |
|
|
198,229 |
|
|
|
190,273 |
|
Total inventories |
|
|
1,288,497 |
|
|
|
1,292,485 |
|
Investments in and advances to unconsolidated joint ventures |
|
|
139,347 |
|
|
|
127,038 |
|
Receivables, deposits and notes, net |
|
|
32,728 |
|
|
|
44,914 |
|
Property, plant and equipment, net |
|
|
19,453 |
|
|
|
20,127 |
|
Prepaid expenses and other assets |
|
|
65,391 |
|
|
|
45,704 |
|
Total homebuilding |
|
|
1,794,269 |
|
|
|
1,682,149 |
|
|
|
|
|
|
|
|
Financial services |
|
|
111,302 |
|
|
|
199,275 |
|
Total assets |
|
$1,905,571 |
|
|
$1,881,424 |
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
Nonrecourse mortgages secured by inventory, net of debt issuance
costs |
|
$211,761 |
|
|
$203,585 |
|
Accounts payable and other liabilities |
|
|
295,927 |
|
|
|
320,193 |
|
Customers’ deposits |
|
|
35,127 |
|
|
|
35,872 |
|
Liabilities from inventory not owned, net of debt issuance
costs |
|
|
144,536 |
|
|
|
141,033 |
|
Senior notes and credit facilities (net of discount, premium and
debt issuance costs) |
|
|
1,583,507 |
|
|
|
1,479,990 |
|
Accrued interest |
|
|
36,452 |
|
|
|
19,081 |
|
Total homebuilding |
|
|
2,307,310 |
|
|
|
2,199,754 |
|
|
|
|
|
|
|
|
Financial services |
|
|
90,417 |
|
|
|
169,145 |
|
Income taxes payable |
|
|
2,917 |
|
|
|
2,301 |
|
Total liabilities |
|
|
2,400,644 |
|
|
|
2,371,200 |
|
|
|
|
|
|
|
|
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 April 30, 2020 and October 31, 2019 |
|
|
135,299 |
|
|
|
135,299 |
|
Common stock, Class A, $0.01 par value – authorized 16,000,000
shares; issued 5,977,601 shares at April 30, 2020 and 5,973,727
shares at October 31, 2019 |
|
|
60 |
|
|
|
60 |
|
Common stock, Class B, $0.01 par value (convertible to Class A at
time of sale) – authorized 2,400,000 shares; issued 652,154 shares
at April 30, 2020 and 650,363 shares at October 31, 2019 |
|
|
7 |
|
|
|
7 |
|
Paid in capital – common stock |
|
|
715,243 |
|
|
|
715,504 |
|
Accumulated deficit |
|
|
(1,231,042 |
) |
|
|
(1,225,973 |
) |
Treasury stock – at cost – 470,430 shares of Class A common stock
and 27,669 shares of Class B common stock at April 30, 2020 and
October 31, 2019 |
|
|
(115,360 |
) |
|
|
(115,360 |
) |
Total Hovnanian Enterprises, Inc. stockholders' equity deficit |
|
|
(495,793 |
) |
|
|
(490,463 |
) |
Noncontrolling interest in
consolidated joint ventures |
|
|
720 |
|
|
|
687 |
|
Total equity deficit |
|
|
(495,073 |
) |
|
|
(489,776 |
) |
Total liabilities and
equity |
|
$1,905,571 |
|
|
$1,881,424 |
|
(1) Derived from the audited balance sheet as of October 31,
2019.
HOVNANIAN ENTERPRISES, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In
Thousands Except Per Share Data)(Unaudited)
|
|
Three Months EndedApril 30, |
|
|
Six Months EndedApril 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
Sale of homes |
|
$523,347 |
|
|
$427,552 |
|
|
$1,002,580 |
|
|
$789,687 |
|
Land sales and other revenues |
|
|
643 |
|
|
|
832 |
|
|
|
1,452 |
|
|
|
9,683 |
|
Total homebuilding |
|
|
523,990 |
|
|
|
428,384 |
|
|
|
1,004,032 |
|
|
|
799,370 |
|
Financial services |
|
|
14,361 |
|
|
|
12,307 |
|
|
|
28,375 |
|
|
|
21,915 |
|
Total revenues |
|
|
538,351 |
|
|
|
440,691 |
|
|
|
1,032,407 |
|
|
|
821,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
Cost of sales, excluding interest |
|
|
428,027 |
|
|
|
355,477 |
|
|
|
824,382 |
|
|
|
660,404 |
|
Cost of sales interest |
|
|
18,589 |
|
|
|
13,898 |
|
|
|
36,725 |
|
|
|
24,140 |
|
Inventory impairment loss and land option write-offs |
|
|
1,010 |
|
|
|
1,462 |
|
|
|
3,838 |
|
|
|
2,166 |
|
Total cost of sales |
|
|
447,626 |
|
|
|
370,837 |
|
|
|
864,945 |
|
|
|
686,710 |
|
Selling, general and administrative |
|
|
40,605 |
|
|
|
44,179 |
|
|
|
81,279 |
|
|
|
86,915 |
|
Total homebuilding expenses |
|
|
488,231 |
|
|
|
415,016 |
|
|
|
946,224 |
|
|
|
773,625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial services |
|
|
9,630 |
|
|
|
8,678 |
|
|
|
19,184 |
|
|
|
17,152 |
|
Corporate general and administrative |
|
|
15,275 |
|
|
|
16,169 |
|
|
|
35,019 |
|
|
|
33,833 |
|
Other interest |
|
|
26,869 |
|
|
|
22,663 |
|
|
|
51,872 |
|
|
|
44,936 |
|
Other operations |
|
|
214 |
|
|
|
329 |
|
|
|
408 |
|
|
|
571 |
|
Total expenses |
|
|
540,219 |
|
|
|
462,855 |
|
|
|
1,052,707 |
|
|
|
870,117 |
|
(Loss) gain on extinguishment
of debt |
|
|
(174 |
) |
|
|
- |
|
|
|
9,282 |
|
|
|
- |
|
Income from unconsolidated
joint ventures |
|
|
6,221 |
|
|
|
7,252 |
|
|
|
7,761 |
|
|
|
16,814 |
|
Income (loss) before income
taxes |
|
|
4,179 |
|
|
|
(14,912 |
) |
|
|
(3,257 |
) |
|
|
(32,018 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State and federal income tax
provision: |
|
|
|
|
|
|
|
|
|
|
|
State |
|
|
100 |
|
|
|
345 |
|
|
|
1,812 |
|
|
|
691 |
|
Federal |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total income taxes |
|
|
100 |
|
|
|
345 |
|
|
|
1,812 |
|
|
|
691 |
|
Net income (loss) |
|
$4,079 |
|
|
$(15,257 |
) |
|
$(5,069 |
) |
|
$(32,709 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share |
|
$0.63 |
|
|
$(2.56 |
) |
|
$(0.82 |
) |
|
$(5.49 |
) |
Weighted-average number of common shares outstanding |
|
|
6,172 |
|
|
|
5,962 |
|
|
|
6,166 |
|
|
|
5,960 |
|
Assuming dilution: |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share |
|
$0.60 |
|
|
$(2.56 |
) |
|
$(0.82 |
) |
|
$(5.49 |
) |
Weighted-average number of common shares outstanding |
|
|
6,432 |
|
|
|
5,962 |
|
|
|
6,166 |
|
|
|
5,960 |
|
HOVNANIAN
ENTERPRISES, INC. |
(DOLLARS
IN THOUSANDS EXCEPT AVG. PRICE) |
(SEGMENT
DATA EXCLUDES UNCONSOLIDATED JOINT VENTURES) |
(UNAUDITED) |
|
|
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Three Months Ended |
Three Months Ended |
Backlog |
|
|
April 30, |
April 30, |
April 30, |
|
|
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(NJ, PA) |
Home |
|
66 |
|
104 |
(36.5)% |
|
|
94 |
|
23 |
308.7% |
|
|
106 |
|
162 |
(34.6)% |
|
|
Dollars |
$23,266 |
$62,580 |
(62.8)% |
|
$46,791 |
$13,040 |
258.8% |
|
$50,771 |
$102,481 |
(50.5)% |
|
|
Avg.
Price |
$352,515 |
$601,731 |
(41.4)% |
|
$497,777 |
$566,957 |
(12.2)% |
|
$478,972 |
$632,599 |
(24.3)% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(DE, MD, VA, WV |
Home |
|
247 |
|
199 |
24.1% |
|
|
168 |
|
142 |
18.3% |
|
|
429 |
|
393 |
9.2% |
|
|
Dollars |
$128,652 |
$118,245 |
8.8% |
|
$89,677 |
$80,818 |
11.0% |
|
$228,622 |
$246,307 |
(7.2)% |
|
|
Avg.
Price |
$520,858 |
$594,196 |
(12.3)% |
|
$533,792 |
$569,141 |
(6.2)% |
|
$532,918 |
$626,735 |
(15.0)% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(IL, OH) |
Home |
|
174 |
|
235 |
(26.0)% |
|
|
184 |
|
141 |
30.5% |
|
|
468 |
|
466 |
0.4% |
|
|
Dollars |
$54,501 |
$68,744 |
(20.7)% |
|
$56,543 |
$42,870 |
31.9% |
|
$132,523 |
$125,181 |
5.9% |
|
|
Avg.
Price |
$313,224 |
$292,528 |
7.1% |
|
$307,299 |
$304,035 |
1.1% |
|
$283,169 |
$268,629 |
5.4% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(FL, GA, SC) |
Home |
|
109 |
|
155 |
(29.7)% |
|
|
127 |
|
123 |
3.3% |
|
|
287 |
|
270 |
6.3% |
|
|
Dollars |
$48,508 |
$64,772 |
(25.1)% |
|
$56,317 |
$49,346 |
14.1% |
|
$131,695 |
$120,140 |
9.6% |
|
|
Avg.
Price |
$445,028 |
$417,884 |
6.5% |
|
$443,441 |
$401,187 |
10.5% |
|
$458,868 |
$444,963 |
3.1% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(AZ, TX) |
Home |
|
582 |
|
559 |
4.1% |
|
|
515 |
|
431 |
19.5% |
|
|
765 |
|
648 |
18.1% |
|
|
Dollars |
$187,493 |
$192,630 |
(2.7)% |
|
$170,485 |
$143,634 |
18.7% |
|
$262,634 |
$227,325 |
15.5% |
|
|
Avg.
Price |
$322,153 |
$344,597 |
(6.5)% |
|
$331,039 |
$333,258 |
(0.7)% |
|
$343,312 |
$350,810 |
(2.1)% |
|
West |
|
|
|
|
|
|
|
|
|
|
(CA) |
Home |
|
309 |
|
294 |
5.1% |
|
|
237 |
|
225 |
5.3% |
|
|
328 |
|
315 |
4.1% |
|
|
Dollars |
$139,418 |
$120,616 |
15.6% |
|
$103,534 |
$97,844 |
5.8% |
|
$151,812 |
$128,422 |
18.2% |
|
|
Avg.
Price |
$451,191 |
$410,259 |
10.0% |
|
$436,852 |
$434,862 |
0.5% |
|
$462,841 |
$407,689 |
13.5% |
|
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
1,487 |
|
1,546 |
(3.8)% |
|
|
1,325 |
|
1,085 |
22.1% |
|
|
2,383 |
|
2,254 |
5.7% |
|
|
Dollars |
$581,838 |
$627,587 |
(7.3)% |
|
$523,347 |
$427,552 |
22.4% |
|
$958,057 |
$949,856 |
0.9% |
|
|
Avg.
Price |
$391,282 |
$405,942 |
(3.6)% |
|
$394,979 |
$394,057 |
0.2% |
|
$402,038 |
$421,409 |
(4.6)% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
155 |
|
195 |
(20.5)% |
|
|
188 |
|
194 |
(3.1)% |
|
|
303 |
|
345 |
(12.2)% |
|
|
Dollars |
$82,890 |
$125,835 |
(34.1)% |
|
$112,196 |
$124,664 |
(10.0)% |
|
$175,817 |
$222,558 |
(21.0)% |
|
|
Avg.
Price |
$534,774 |
$645,308 |
(17.1)% |
|
$596,787 |
$642,598 |
(7.1)% |
|
$580,254 |
$645,096 |
(10.1)% |
|
Grand Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
1,642 |
|
1,741 |
(5.7)% |
|
|
1,513 |
|
1,279 |
18.3% |
|
|
2,686 |
|
2,599 |
3.3% |
|
|
Dollars |
$664,728 |
$753,422 |
(11.8)% |
|
$635,543 |
$552,216 |
15.1% |
|
$1,133,874 |
$1,172,414 |
(3.3)% |
|
|
Avg.
Price |
$404,828 |
$432,752 |
(6.5)% |
|
$420,055 |
$431,756 |
(2.7)% |
|
$422,142 |
$451,102 |
(6.4)% |
|
|
|
|
|
|
|
|
|
|
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
284 |
|
34 |
735.3% |
|
|
0 |
|
1 |
(100.0)% |
|
|
581 |
|
37 |
1,470.3% |
|
|
Dollars |
$44,393 |
$5,447 |
715.0% |
|
$0 |
$112 |
(100.0)% |
|
$91,551 |
$6,172 |
1,383.3% |
|
|
Avg.
Price |
$156,317 |
$160,206 |
(2.4)% |
|
$0 |
$112,000 |
(100.0)% |
|
$157,575 |
$166,811 |
(5.5)% |
|
|
|
|
|
|
|
|
|
|
|
|
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) |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Six Months Ended |
Six Months Ending |
Backlog |
|
|
April 30, |
April 30, |
April 30, |
|
|
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(NJ, PA) |
Home |
|
129 |
|
156 |
(17.3)% |
|
|
175 |
|
45 |
288.9% |
|
|
106 |
|
162 |
(34.6)% |
|
|
Dollars |
$56,269 |
$97,530 |
(42.3)% |
|
$92,055 |
$25,545 |
260.4% |
|
$50,771 |
$102,481 |
(50.5)% |
|
|
Avg.
Price |
$436,194 |
$625,192 |
(30.2)% |
|
$526,029 |
$567,667 |
(7.3)% |
|
$478,972 |
$632,599 |
(24.3)% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(DE, MD, VA, WV |
Home |
|
430 |
|
350 |
22.9% |
|
|
323 |
|
253 |
27.7% |
|
|
429 |
|
393 |
9.2% |
|
|
Dollars |
$222,354 |
$199,759 |
11.3% |
|
$177,266 |
$133,997 |
32.3% |
|
$228,622 |
$246,307 |
(7.2)% |
|
|
Avg.
Price |
$517,102 |
$570,740 |
(9.4)% |
|
$548,811 |
$529,632 |
3.6% |
|
$532,918 |
$626,735 |
(15.0)% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(IL, OH) |
Home |
|
361 |
|
362 |
(0.3)% |
|
|
343 |
|
290 |
18.3% |
|
|
468 |
|
466 |
0.4% |
|
|
Dollars |
$112,777 |
$105,790 |
6.6% |
|
$102,935 |
$87,759 |
17.3% |
|
$132,523 |
$125,181 |
5.9% |
|
|
Avg.
Price |
$312,402 |
$292,238 |
6.9% |
|
$300,102 |
$302,617 |
(0.8)% |
|
$283,169 |
$268,629 |
5.4% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(FL, GA, SC) |
Home |
|
264 |
|
250 |
5.6% |
|
|
224 |
|
231 |
(3.0)% |
|
|
287 |
|
270 |
6.3% |
|
|
Dollars |
$115,666 |
$105,232 |
9.9% |
|
$92,997 |
$93,229 |
(0.2)% |
|
$131,695 |
$120,140 |
9.6% |
|
|
Avg.
Price |
$438,129 |
$420,928 |
4.1% |
|
$415,165 |
$403,589 |
2.9% |
|
$458,868 |
$444,963 |
3.1% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(AZ, TX) |
Home |
|
1,110 |
|
921 |
20.5% |
|
|
1,008 |
|
796 |
26.6% |
|
|
765 |
|
648 |
18.1% |
|
|
Dollars |
$365,926 |
$307,968 |
18.8% |
|
$334,188 |
$261,497 |
27.8% |
|
$262,634 |
$227,325 |
15.5% |
|
|
Avg.
Price |
$329,663 |
$334,384 |
(1.4)% |
|
$331,536 |
$328,514 |
0.9% |
|
$343,312 |
$350,810 |
(2.1)% |
|
West |
|
|
|
|
|
|
|
|
|
|
(CA) |
Home |
|
515 |
|
441 |
16.8% |
|
|
488 |
|
437 |
11.7% |
|
|
328 |
|
315 |
4.1% |
|
|
Dollars |
$230,250 |
$177,634 |
29.6% |
|
$203,139 |
$187,660 |
8.2% |
|
$151,812 |
$128,422 |
18.2% |
|
|
Avg.
Price |
$447,087 |
$402,798 |
11.0% |
|
$416,268 |
$429,428 |
(3.1)% |
|
$462,841 |
$407,689 |
13.5% |
|
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
2,809 |
|
2,480 |
13.3% |
|
|
2,561 |
|
2,052 |
24.8% |
|
|
2,383 |
|
2,254 |
5.7% |
|
|
Dollars |
$1,103,242 |
$993,913 |
11.0% |
|
$1,002,580 |
$789,687 |
27.0% |
|
$958,057 |
$949,856 |
0.9% |
|
|
Avg.
Price |
$392,753 |
$400,771 |
(2.0)% |
|
$391,480 |
$384,838 |
1.7% |
|
$402,038 |
$421,409 |
(4.6)% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
325 |
|
327 |
(0.6)% |
|
|
337 |
|
343 |
(1.7)% |
|
|
303 |
|
345 |
(12.2)% |
|
|
Dollars |
$189,807 |
$210,770 |
(9.9)% |
|
$198,545 |
$218,895 |
(9.3)% |
|
$175,817 |
$222,558 |
(21.0)% |
|
|
Avg.
Price |
$584,022 |
$644,557 |
(9.4)% |
|
$589,154 |
$638,178 |
(7.7)% |
|
$580,254 |
$645,096 |
(10.1)% |
|
Grand Total |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
3,134 |
|
2,807 |
11.6% |
|
|
2,898 |
|
2,395 |
21.0% |
|
|
2,686 |
|
2,599 |
3.3% |
|
|
Dollars |
$1,293,049 |
$1,204,683 |
7.3% |
|
$1,201,125 |
$1,008,582 |
19.1% |
|
$1,133,874 |
$1,172,414 |
(3.3)% |
|
|
Avg.
Price |
$412,587 |
$429,171 |
(3.9)% |
|
$414,467 |
$421,120 |
(1.6)% |
|
$422,142 |
$451,102 |
(6.4)% |
|
|
|
|
|
|
|
|
|
|
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
379 |
|
36 |
952.8% |
|
|
0 |
|
4 |
(100.0)% |
|
|
581 |
|
37 |
1,470.3% |
|
|
Dollars |
$59,234 |
$6,081 |
874.1% |
|
$0 |
$908 |
(100.0)% |
|
$91,551 |
$6,172 |
1,383.3% |
|
|
Avg.
Price |
$156,290 |
$168,917 |
(7.5)% |
|
$0 |
$227,000 |
(100.0)% |
|
$157,575 |
$166,811 |
(5.5)% |
|
|
|
|
|
|
|
|
|
|
|
|
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) |
(UNAUDITED) |
|
|
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Three Months Ended |
Three Months Ended |
Backlog |
|
|
April 30, |
April 30, |
April 30, |
|
|
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
34 |
|
75 |
(54.7)% |
|
|
56 |
|
76 |
(26.3)% |
|
|
61 |
|
108 |
(43.5)% |
|
(excluding KSA JV) |
Dollars |
$25,083 |
$59,244 |
(57.7)% |
|
$48,259 |
$59,728 |
(19.2)% |
|
$48,707 |
$89,473 |
(45.6)% |
|
(NJ, PA) |
Avg.
Price |
$737,735 |
$789,920 |
(6.6)% |
|
$861,768 |
$785,895 |
9.7% |
|
$798,475 |
$828,454 |
(3.6)% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
17 |
|
4 |
325.0% |
|
|
19 |
|
14 |
35.7% |
|
|
45 |
|
17 |
164.7% |
|
(DE, MD, VA, WV) |
Dollars |
$8,609 |
$3,606 |
138.7% |
|
$9,536 |
$10,831 |
(12.0)% |
|
$23,133 |
$14,086 |
64.2% |
|
|
Avg.
Price |
$506,412 |
$901,250 |
(43.8)% |
|
$501,895 |
$773,643 |
(35.1)% |
|
$514,067 |
$828,588 |
(38.0)% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
4 |
|
2 |
100.0% |
|
|
6 |
|
4 |
50.0% |
|
|
3 |
|
5 |
(40.0)% |
|
(IL, OH) |
Dollars |
$1,754 |
$1,354 |
29.5% |
|
$2,859 |
$2,735 |
4.5% |
|
$1,363 |
$2,862 |
(52.4)% |
|
|
Avg.
Price |
$438,500 |
$677,000 |
(35.2)% |
|
$476,667 |
$683,750 |
(30.3)% |
|
$454,333 |
$572,400 |
(20.6)% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
82 |
|
58 |
41.4% |
|
|
60 |
|
49 |
22.4% |
|
|
137 |
|
124 |
10.5% |
|
(FL, GA, SC) |
Dollars |
$37,309 |
$31,519 |
18.4% |
|
$27,678 |
$25,985 |
6.5% |
|
$68,550 |
$66,292 |
3.4% |
|
|
Avg.
Price |
$454,988 |
$543,431 |
(16.3)% |
|
$461,300 |
$530,306 |
(13.0)% |
|
$500,365 |
$534,613 |
(6.4)% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
10 |
|
36 |
(72.2)% |
|
|
27 |
|
32 |
(15.6)% |
|
|
46 |
|
68 |
(32.4)% |
|
(AZ, TX) |
Dollars |
$7,421 |
$22,859 |
(67.5)% |
|
$17,026 |
$18,622 |
(8.6)% |
|
$29,973 |
$41,535 |
(27.8)% |
|
|
Avg.
Price |
$742,100 |
$635,000 |
16.9% |
|
$630,593 |
$581,938 |
8.4% |
|
$651,587 |
$610,809 |
6.7% |
|
West |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
8 |
|
20 |
(60.0)% |
|
|
20 |
|
19 |
5.3% |
|
|
11 |
|
23 |
(52.2)% |
|
(CA) |
Dollars |
$2,714 |
$7,253 |
(62.6)% |
|
$6,838 |
$6,763 |
1.1% |
|
$4,091 |
$8,310 |
(50.8)% |
|
|
Avg.
Price |
$339,250 |
$362,650 |
(6.5)% |
|
$341,900 |
$355,947 |
(3.9)% |
|
$371,909 |
$361,304 |
2.9% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
155 |
|
195 |
(20.5)% |
|
|
188 |
|
194 |
(3.1)% |
|
|
303 |
|
345 |
(12.2)% |
|
|
Dollars |
$82,890 |
$125,835 |
(34.1)% |
|
$112,196 |
$124,664 |
(10.0)% |
|
$175,817 |
$222,558 |
(21.0)% |
|
|
Avg.
Price |
$534,774 |
$645,308 |
(17.1)% |
|
$596,787 |
$642,598 |
(7.1)% |
|
$580,254 |
$645,096 |
(10.1)% |
|
|
|
|
|
|
|
|
|
|
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
284 |
|
34 |
735.3% |
|
|
0 |
|
1 |
(100.0)% |
|
|
581 |
|
37 |
1,470.3% |
|
|
Dollars |
$44,393 |
$5,447 |
715.0% |
|
$0 |
$112 |
(100.0)% |
|
$91,551 |
$6,172 |
1,383.3% |
|
|
Avg.
Price |
$156,317 |
$160,206 |
(2.4)% |
|
$0 |
$112,000 |
(100.0)% |
|
$157,575 |
$166,811 |
(5.5)% |
|
|
|
|
|
|
|
|
|
|
|
|
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) |
(UNAUDITED) |
|
|
|
|
|
Contracts (1) |
Deliveries |
Contract |
|
|
Six Months Ended |
Six Months Ended |
Backlog |
|
|
April 30, |
April 30, |
April 30, |
|
|
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
Northeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
91 |
|
123 |
(26.0)% |
|
|
106 |
|
129 |
(17.8)% |
|
|
61 |
|
108 |
(43.5)% |
|
(excluding KSA JV) |
Dollars |
$70,383 |
$97,463 |
(27.8)% |
|
$85,355 |
$101,357 |
(15.8)% |
|
$48,707 |
$89,473 |
(45.6)% |
|
(NJ, PA) |
Avg.
Price |
$773,440 |
$792,382 |
(2.4)% |
|
$805,236 |
$785,713 |
2.5% |
|
$798,475 |
$828,454 |
(3.6)% |
|
Mid-Atlantic |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
34 |
|
17 |
100.0% |
|
|
31 |
|
24 |
29.2% |
|
|
45 |
|
17 |
164.7% |
|
(DE, MD, VA, WV) |
Dollars |
$17,874 |
$14,668 |
21.9% |
|
$15,716 |
$19,420 |
(19.1)% |
|
$23,133 |
$14,086 |
64.2% |
|
|
Avg.
Price |
$525,706 |
$862,824 |
(39.1)% |
|
$506,968 |
$809,167 |
(37.3)% |
|
$514,067 |
$828,588 |
(38.0)% |
|
Midwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
10 |
|
7 |
42.9% |
|
|
10 |
|
11 |
(9.1)% |
|
|
3 |
|
5 |
(40.0)% |
|
(IL, OH) |
Dollars |
$4,648 |
$3,963 |
17.3% |
|
$4,569 |
$7,176 |
(36.3)% |
|
$1,363 |
$2,862 |
(52.4)% |
|
|
Avg.
Price |
$464,800 |
$566,143 |
(17.9)% |
|
$456,900 |
$652,364 |
(30.0)% |
|
$454,333 |
$572,400 |
(20.6)% |
|
Southeast |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
119 |
|
83 |
43.4% |
|
|
105 |
|
81 |
29.6% |
|
|
137 |
|
124 |
10.5% |
|
(FL, GA, SC) |
Dollars |
$58,704 |
$44,611 |
31.6% |
|
$50,727 |
$41,574 |
22.0% |
|
$68,550 |
$66,292 |
3.4% |
|
|
Avg.
Price |
$493,311 |
$537,482 |
(8.2)% |
|
$483,114 |
$513,259 |
(5.9)% |
|
$500,365 |
$534,613 |
(6.4)% |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
45 |
|
62 |
(27.4)% |
|
|
44 |
|
61 |
(27.9)% |
|
|
46 |
|
68 |
(32.4)% |
|
(AZ, TX) |
Dollars |
$29,219 |
$37,383 |
(21.8)% |
|
$27,565 |
$36,314 |
(24.1)% |
|
$29,973 |
$41,535 |
(27.8)% |
|
|
Avg.
Price |
$649,311 |
$602,952 |
7.7% |
|
$626,477 |
$595,311 |
5.2% |
|
$651,587 |
$610,809 |
6.7% |
|
West |
|
|
|
|
|
|
|
|
|
|
(unconsolidated joint ventures) |
Home |
|
26 |
|
35 |
(25.7)% |
|
|
41 |
|
37 |
10.8% |
|
|
11 |
|
23 |
(52.2)% |
|
(CA) |
Dollars |
$8,979 |
$12,682 |
(29.2)% |
|
$14,613 |
$13,054 |
11.9% |
|
$4,091 |
$8,310 |
(50.8)% |
|
|
Avg.
Price |
$345,346 |
$362,343 |
(4.7)% |
|
$356,415 |
$352,811 |
1.0% |
|
$371,909 |
$361,304 |
2.9% |
|
Unconsolidated Joint Ventures (2) |
|
|
|
|
|
|
|
|
|
|
(excluding KSA JV) |
Home |
|
325 |
|
327 |
(0.6)% |
|
|
337 |
|
343 |
(1.7)% |
|
|
303 |
|
345 |
(12.2)% |
|
|
Dollars |
$189,807 |
$210,770 |
(9.9)% |
|
$198,545 |
$218,895 |
(9.3)% |
|
$175,817 |
$222,558 |
(21.0)% |
|
|
Avg.
Price |
$584,022 |
$644,557 |
(9.4)% |
|
$589,154 |
$638,178 |
(7.7)% |
|
$580,254 |
$645,096 |
(10.1)% |
|
|
|
|
|
|
|
|
|
|
|
|
KSA JV Only |
|
|
|
|
|
|
|
|
|
|
|
Home |
|
379 |
|
36 |
952.8% |
|
|
0 |
|
4 |
(100.0)% |
|
|
581 |
|
37 |
1,470.3% |
|
|
Dollars |
$59,234 |
$6,081 |
874.1% |
|
$0 |
$908 |
(100.0)% |
|
$91,551 |
$6,172 |
1,383.3% |
|
|
Avg.
Price |
$156,290 |
$168,917 |
(7.5)% |
|
$0 |
$227,000 |
(100.0)% |
|
$157,575 |
$166,811 |
(5.5)% |
|
|
|
|
|
|
|
|
|
|
|
|
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)
Historical Stock Chart
From Mar 2024 to Apr 2024
Hovnanian Enterprises (NYSE:HOV)
Historical Stock Chart
From Apr 2023 to Apr 2024