Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, reported results for its fiscal first quarter ended January 31, 2020.

RESULTS FOR THE THREE-MONTH PERIOD ENDED JANUARY 31, 2020: 

  • Total revenues increased 29.8% to $494.1 million in the first quarter of fiscal 2020, compared with $380.6 million in the same period of the prior year.
  • Homebuilding gross margin percentage, after cost of sales interest expense and land charges, was 12.9% for the three months ended January 31, 2020 compared with 14.8% during the same quarter a year ago.
  • Homebuilding gross margin percentage, before cost of sales interest expense and land charges, was 17.3% during the fiscal 2020 first quarter compared with 17.8% in last year’s first quarter.
  • Total SG&A was $60.4 million, or 12.2% of total revenues, in the fiscal 2020 first quarter compared with $60.4 million, or 15.9% of total revenues, in the previous year’s first quarter.
  • Interest incurred (some of which was expensed and some of which was capitalized) was $44.3 million for the first quarter of fiscal 2020 compared with $38.9 million during the first quarter of fiscal 2019.
  • Income from unconsolidated joint ventures was $1.5 million for the first quarter ended January 31, 2020 compared with $9.6 million in the fiscal 2019 first quarter.
  • Including a $9.5 million gain on extinguishment of debt, loss before income taxes for the first quarter of fiscal 2020 was $7.4 million compared with a loss of $17.1 million in the first quarter of the prior year.
  • Net loss was $9.1 million, or $1.49 per common share, for the three months ended January 31, 2020 compared with a net loss of $17.5 million, or $2.93 per common share, in the first quarter of the previous year.
  • Adjusted EBITDA increased to $30.4 million in the first quarter ended January 31, 2020 compared with $17.1 million in the same quarter one year ago. EBITDA increased to $37.0 million for the first quarter of fiscal 2020 compared with $16.4 million in the same quarter of the prior year.
  • Loss before income taxes excluding land-related charges and gain on extinguishment of debt, was $14.1 million in the first quarter of fiscal 2020 compared with a loss before these items of $16.4 million in the fiscal 2019 first quarter.
  • Consolidated contracts per community increased 42.6% to 9.7 contracts per community for the first quarter ended January 31, 2020 compared with 6.8 contracts per community in last year’s first quarter. Contracts per community, including domestic unconsolidated joint ventures(1), increased 32.9% to 9.3 contracts per community during the first quarter of fiscal 2020 compared with 7.0 contracts per community, including domestic unconsolidated joint ventures, in the same period of the prior year.
  • The number of consolidated contracts increased 41.5% to 1,322 homes, during the fiscal 2020 first quarter, compared with 934 homes in last year’s first quarter. The number of contracts, including domestic unconsolidated joint ventures, for the three months ended January 31, 2020, increased 40.0% to 1,492 homes from 1,066 homes during the same quarter a year ago.
  • Due to stronger than expected contracts, causing us to sell through communities faster than anticipated, and after contributing four consolidated communities to unconsolidated joint ventures, the consolidated community count was 136 as of January 31, 2020, essentially unchanged compared with 137 communities at the end of the previous year’s first quarter. As of the end of the first quarter of fiscal 2020, community count, including domestic unconsolidated joint ventures, was 160 communities, up 5.3% compared with 152 communities at January 31, 2019.
  • For February 2020, consolidated contracts per community were 4.8 compared with 3.2 for the same month one year ago. During February 2020, the number of consolidated contracts increased 44.1% to 647 homes from 449 homes in February 2019.
  • The dollar value of consolidated contract backlog, as of January 31, 2020, increased 20.0% to $899.6 million compared with $749.8 million as of January 31, 2019. The dollar value of contract backlog, including domestic unconsolidated joint ventures, as of January 31, 2020, was $1.10 billion, an increase of 13.7% compared with $971.2 million as of January 31, 2019.
  • Consolidated deliveries were 1,236 homes in the fiscal 2020 first quarter a 27.8% increase compared with 967 homes in the previous year’s first quarter. For the fiscal 2020 first quarter, deliveries, including domestic unconsolidated joint ventures, increased 24.1% to 1,385 homes compared with 1,116 homes during the first quarter of fiscal 2019.
  • The contract cancellation rate for consolidated contracts was 19% for the first quarter ended January 31, 2020 compared with 24% in the fiscal 2019 first quarter. The contract cancellation rate for contracts including domestic unconsolidated joint ventures was 19% for the first quarter of fiscal 2020 compared with 23% in the first 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 JANUARY 31, 2020: 

  • Total liquidity at the end of the of the first quarter of fiscal 2020 was $224.9 million.
  • In the first quarter of fiscal 2020, 2,026 lots were put under option or acquired in 25 consolidated communities, which is 790 lots more than the 1,236 consolidated first quarter deliveries.
  • As of January 31, 2020, consolidated lots controlled totaled 27,701; which, based on trailing twelve-month deliveries, equaled a 5.3 years’ supply.

COMMENTS FROM MANAGEMENT:

“Both the overall U.S. economy and the current housing market continue to exhibit signs of strength. With more than 40% growth in contracts and contracts per community during the first quarter of fiscal 2020, we have seen the continuation of the positive momentum that began in the spring selling season last year,” stated Ara K. Hovnanian, Chairman of the Board, President and Chief Executive Officer. “Furthermore, we are pleased that our revenue gains have begun to catch up to the increases in contracts that we have seen over the past six months and are also pleased with the substantial growth we reported in EBITDA. The magnitude of the improvement in our revenues gives us confidence that we are making solid progress towards achieving our revenue growth goals, which ultimately should lead to higher levels of profitability.”

WEBCAST INFORMATION: 

Hovnanian Enterprises will webcast its fiscal 2020 first quarter financial results conference call at 11:00 a.m. E.T. on Thursday, March 5, 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 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 (loss). The reconciliation for historical periods of EBIT, EBITDA and Adjusted EBITDA to net (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.

(Loss) before income taxes excluding land-related charges and gain on extinguishment of debt is a non-GAAP financial measure. The most directly comparable GAAP financial measure is (loss) before income taxes. The reconciliation for historical periods of (loss) before income taxes excluding land-related charges and gain on extinguishment of debt to (loss) before income taxes is presented in a table attached to this earnings release.

Total liquidity is comprised of $81.4 million of cash and cash equivalents, $18.5 million of restricted cash required to collateralize letters of credit and $125.0 million of availability under the senior secured revolving credit facility as of January 31, 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) changes in general and local economic, industry and business conditions and impacts of a significant homebuilding downturn; (2) adverse weather and other environmental conditions and natural disasters; (3) high leverage and restrictions on the Company’s operations and activities imposed by the agreements governing the Company’s outstanding indebtedness; (4) availability and terms of financing to the Company; (5) the Company’s sources of liquidity; (6) changes in credit ratings; (7) the seasonality of the Company’s business; (8) the availability and cost of suitable land and improved lots and sufficient liquidity to invest in such land and lots; (9) 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; (10) reliance on, and the performance of, subcontractors; (11) 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; (12) increases in cancellations of agreements of sale; (13) fluctuations in interest rates and the availability of mortgage financing; (14) changes in tax laws affecting the after-tax costs of owning a home; (15) operations through unconsolidated joint ventures with third parties; (16) government regulation, including regulations concerning development of land, the homebuilding, sales and customer financing processes, tax laws and the environment; (17) legal claims brought against us and not resolved in our favor, such as product liability litigation, warranty claims and claims made by mortgage investors; (18) levels of competition; (19) successful identification and integration of acquisitions; (20) significant influence of the Company’s controlling stockholders; (21) availability of net operating loss carryforwards; (22) utility shortages and outages or rate fluctuations; (23) geopolitical risks, terrorist acts and other acts of war; (24) diseases, pandemics or other severe public health events; (25) loss of key management personnel or failure to attract qualified personnel; (26) information technology failures and data security breaches; (27) negative publicity; and (28) 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 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.
January 31, 2020
Statements of consolidated operations
(In thousands, except per share data)
   
  Three Months Ended
  January 31,
    2020       2019  
               
  (Unaudited)
Total revenues $494,056     $380,594  
Costs and expenses (1)   512,488       407,262  
Gain on extinguishment of debt   9,456       -  
Income from unconsolidated joint ventures   1,540       9,562  
(Loss) before income taxes   (7,436 )     (17,106 )
Income tax provision   1,712       346  
Net (loss) $(9,148 )   $(17,452 )
       
Per share data:      
Basic and assuming dilution:      
Net (loss) per common share $(1.49 )   $(2.93 )
Weighted average number of      
common shares outstanding (2)   6,161       5,958  
       
(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.
January 31, 2020
Reconciliation of (loss) before income taxes excluding land-related charges and gain on extinguishment of debt to (loss) before income taxes
(In thousands)
  Three Months Ended
  January 31,
    2020       2019  
               
  (Unaudited)
(Loss) before income taxes $(7,436 )   $(17,106 )
Inventory impairment loss and land option write-offs   2,828       704  
Gain on extinguishment of debt   (9,456 )     -  
(Loss) before income taxes excluding land-related charges and gain on extinguishment of debt (1) $(14,064 )   $(16,402 )
       
(1) (Loss) before income taxes excluding land-related charges and gain on extinguishment of debt is a non-GAAP financial measure. The most directly comparable GAAP financial measure is (loss) before income taxes.
Hovnanian Enterprises, Inc.
January 31, 2020
Gross margin
(In thousands)
 
  Homebuilding Gross Margin
  Three Months Ended
  January 31,
    2020       2019  
               
  (Unaudited)
Sale of homes $479,233     $362,135  
Cost of sales, excluding interest expense and land charges (1)   396,318       297,570  
Homebuilding gross margin, before cost of sales interest expense and land charges (2)   82,915       64,565  
Cost of sales interest expense, excluding land sales interest expense   18,136       10,242  
Homebuilding gross margin, after cost of sales interest expense, before land charges (2)   64,779       54,323  
Land charges   2,828       704  
Homebuilding gross margin $61,951     $53,619  
       
Gross margin percentage   12.9%       14.8%  
Gross margin percentage, before cost of sales interest expense and land charges (2)   17.3%       17.8%  
Gross margin percentage, after cost of sales interest expense, before land charges (2)   13.5%       15.0%  
       
   
  Land Sales Gross Margin
  Three Months Ended
  January 31,
    2020       2019  
               
  (Unaudited)
Land and lot sales $25     $7,508  
Land and lot sales cost of sales, excluding interest and land charges (1)   37       7,357  
Land and lot sales gross margin, excluding interest and land charges   (12 )     151  
Land and lot sales interest   -       -  
Land and lot sales gross margin, including interest and excluding land charges $(12 )   $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.
January 31, 2020
Reconciliation of adjusted EBITDA to net (loss)
(In thousands)
  Three Months Ended
  January 31,
    2020       2019  
               
  (Unaudited)
Net (loss) $(9,148 )   $(17,452 )
Income tax provision   1,712       346  
Interest expense   43,139       32,515  
EBIT (1)   35,703       15,409  
Depreciation and amortization   1,279       979  
EBITDA (2)   36,982       16,388  
Inventory impairment loss and land option write-offs   2,828       704  
Gain on extinguishment of debt   (9,456 )     -  
Adjusted EBITDA (3) $30,354     $17,092  
       
Interest incurred $44,334     $38,853  
       
Adjusted EBITDA to interest incurred   0.68       0.44  
       
(1) EBIT is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net (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 (loss). EBITDA represents earnings before interest expense, income taxes and depreciation and amortization.
 
(3) Adjusted EBITDA is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net (loss). Adjusted EBITDA represents earnings before interest expense, income taxes, depreciation and amortization, inventory impairment loss and land option write-offs and gain on extinguishment of debt.
       
       
Hovnanian Enterprises, Inc.
January 31, 2020
Interest incurred, expensed and capitalized
(In thousands)
 
  Three Months Ended
  January 31,
    2020       2019  
               
  (Unaudited)
Interest capitalized at beginning of period $71,264     $68,117  
Plus interest incurred   44,334       38,853  
Less interest expensed   43,139       32,515  
Less interest contributed to unconsolidated joint venture (1)   4,580       -  
Interest capitalized at end of period (2) $67,879     $74,455  
       
(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)

  January 31,   October 31,
    2020       2019  
  (Unaudited)     (1)  
ASSETS        
Homebuilding:        
Cash and cash equivalents $81,396     $130,976  
Restricted cash and cash equivalents   19,878       20,905  
Inventories:        
Sold and unsold homes and lots under development   1,009,098       993,647  
Land and land options held for future development or sale   81,402       108,565  
Consolidated inventory not owned   205,215       190,273  
Total inventories   1,295,715       1,292,485  
Investments in and advances to unconsolidated joint ventures   135,331       127,038  
Receivables, deposits and notes, net   49,188       44,914  
Property, plant and equipment, net   19,654       20,127  
Prepaid expenses and other assets   71,284       45,704  
Total homebuilding   1,672,446       1,682,149  
         
Financial services   117,557       199,275  
Total assets $1,790,003     $1,881,424  
         
LIABILITIES AND EQUITY        
Homebuilding:        
Nonrecourse mortgages secured by inventory, net of debt issuance costs $205,805     $203,585  
Accounts payable and other liabilities   306,559       320,193  
Customers’ deposits   33,312       35,872  
Liabilities from inventory not owned, net of debt issuance costs   152,235       141,033  
Senior notes and credit facilities (net of discount, premium and debt issuance costs)   1,460,200       1,479,990  
Accrued interest   30,899       19,081  
Total homebuilding   2,189,010       2,199,754  
         
Financial services   96,057       169,145  
Income taxes payable   4,015       2,301  
Total liabilities   2,289,082       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 January 31, 2020 and October 31, 2019   135,299       135,299  
Common stock, Class A, $0.01 par value – authorized 16,000,000 shares; issued 5,976,731 shares at January 31, 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 652,155 shares at January 31, 2020 and 650,363 shares at October 31, 2019   7       7  
Paid in capital – common stock   715,336       715,504  
Accumulated deficit   (1,235,121 )     (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 January 31, 2020 and October 31, 2019   (115,360 )     (115,360 )
Total Hovnanian Enterprises, Inc. stockholders' equity deficit   (499,779 )     (490,463 )
Noncontrolling interest in consolidated joint ventures   700       687  
Total equity deficit   (499,079 )     (489,776 )
Total liabilities and equity $1,790,003     $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 Ended January 31,
    2020       2019  
Revenues:          
Homebuilding:          
Sale of homes $479,233     $362,135  
Land sales and other revenues   809       8,851  
Total homebuilding   480,042       370,986  
Financial services   14,014       9,608  
Total revenues   494,056       380,594  
           
Expenses:          
Homebuilding:          
Cost of sales, excluding interest   396,355       304,927  
Cost of sales interest   18,136       10,242  
Inventory impairment loss and land option write-offs   2,828       704  
Total cost of sales   417,319       315,873  
Selling, general and administrative   40,674       42,736  
Total homebuilding expenses   457,993       358,609  
           
Financial services   9,554       8,474  
Corporate general and administrative   19,744       17,664  
Other interest   25,003       22,273  
Other operations   194       242  
Total expenses   512,488       407,262  
Gain on extinguishment of debt   9,456       -  
Income from unconsolidated joint ventures   1,540       9,562  
(Loss) before income taxes   (7,436 )     (17,106 )
State and federal income tax provision:          
State   1,712       346  
Federal   -       -  
Total income taxes   1,712       346  
Net (loss) $(9,148 )   $(17,452 )
           
Per share data:          
Basic and assuming dilution:          
Net (loss) per common share $(1.49 )   $(2.93 )
Weighted-average number of common shares outstanding   6,161       5,958  
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA EXCLUDES UNCONSOLIDATED JOINT VENTURES ONLY)
(UNAUDITED)
 
          Three Months - January 31, 2020      
    Contracts (1) Deliveries Contract
    Three Months Ended Three Months Ended Backlog
    January 31, January 31, January 31,
    2020 2019 % Change 2020 2019 % Change 2020 2019 % Change
Northeast                    
(NJ, PA) Home 63 52 21.2%   81 22 268.2%   134 81 65.4%  
  Dollars $33,003 $34,950 (5.6)%   $45,264 $12,505 262.0%   $74,296 $52,941 40.3%  
  Avg. Price $523,857 $672,115 (22.1)%   $558,815 $568,409 (1.7)%   $554,448 $653,593 (15.2)%  
Mid-Atlantic                    
(DE, MD, VA, WV) Home 183 151 21.2%   155 111 39.6%   350 336 4.2%  
  Dollars $93,702 $81,514 15.0%   $87,589 $53,179 64.7%   $189,646 $208,881 (9.2)%  
  Avg. Price $512,033 $539,828 (5.1)%   $565,090 $479,090 18.0%   $541,846 $621,670 (12.8)%  
Midwest                    
(IL, OH) Home 187 127 47.2%   159 149 6.7%   478 372 28.5%  
  Dollars $58,276 $37,046 57.3%   $46,392 $44,889 3.3%   $134,566 $99,306 35.5%  
  Avg. Price $311,636 $291,701 6.8%   $291,774 $301,268 (3.2)%   $281,519 $266,952 5.5%  
Southeast                    
(FL, GA, SC) Home 155 95 63.2%   97 108 (10.2)%   305 238 28.2%  
  Dollars $67,158 $40,460 66.0%   $36,680 $43,883 (16.4)%   $139,505 $104,714 33.2%  
  Avg. Price $433,277 $425,895 1.7%   $378,144 $406,324 (6.9)%   $457,393 $439,975 4.0%  
Southwest                    
(AZ, TX) Home 528 362 45.9%   493 365 35.1%   698 520 34.2%  
  Dollars $178,433 $115,338 54.7%   $163,703 $117,863 38.9%   $245,627 $178,329 37.7%  
  Avg. Price $337,941 $318,613 6.1%   $332,055 $322,912 2.8%   $351,901 $342,940 2.6%  
West                     
(CA) Home 206 147 40.1%   251 212 18.4%   256 246 4.1%  
  Dollars $90,832 $57,018 59.3%   $99,605 $89,816 10.9%   $115,927 $105,650 9.7%  
  Avg. Price $440,932 $387,878 13.7%   $396,833 $423,660 (6.3)%   $452,840 $429,472 5.4%  
Consolidated Total                    
  Home 1,322 934 41.5%   1,236 967 27.8%   2,221 1,793 23.9%  
  Dollars $521,404 $366,326 42.3%   $479,233 $362,135 32.3%   $899,567 $749,821 20.0%  
  Avg. Price $394,405 $392,212 0.6%   $387,729 $374,493 3.5%   $405,028 $418,194 (3.1)%  
Unconsolidated Joint Ventures (2)                    
(excluding KSA JV) Home 170 132 28.8%   149 149 0.0%   336 344 (2.3)%  
  Dollars $106,917 $84,936 25.9%   $86,349 $94,231 (8.4)%   $205,122 $221,386 (7.3)%  
  Avg. Price $628,921 $643,455 (2.3)%   $579,523 $632,423 (8.4)%   $610,482 $643,564 (5.1)%  
Grand Total                    
  Home 1,492 1,066 40.0%   1,385 1,116 24.1%   2,557 2,137 19.7%  
  Dollars $628,321 $451,262 39.2%   $565,582 $456,366 23.9%   $1,104,689 $971,207 13.7%  
  Avg. Price $421,127 $423,322 (0.5)%   $408,362 $408,930 (0.1)%   $432,025 $454,472 (4.9)%  
                     
KSA JV Only                    
  Home 95 2 4,650.0%   0 3 (100.0)%   297 4 7,325.0%  
  Dollars $14,841 $633 2,244.5%   $0 $796 (100.0)%   $47,157 $837 5,534.1%  
  Avg. Price $156,220 $316,500 (50.6)%   $0 $265,374 (100.0)%   $158,779 $209,333 (24.2)%  
                     
DELIVERIES INCLUDE EXTRAS
Notes:
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.  
(2) Represents home deliveries, home revenues and average prices for our unconsolidated homebuilding joint ventures for the period. We provide this data as a supplement to our consolidated results as an indicator of the volume managed in our unconsolidated homebuilding joint ventures. Our proportionate share of the income or loss of unconsolidated homebuilding and land development joint ventures is reflected as a separate line item in our consolidated financial statements under “Income (loss) from unconsolidated joint ventures”.
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA UNCONSOLIDATED JOINT VENTURES ONLY)
(UNAUDITED)
 
          Three Months - January 31, 2020      
    Net Contracts (1) Deliveries Contract
    Three Months Ended Three Months Ended Backlog
    January 31, January 31, January 31,
    2020 2019 % Change 2020 2019 % Change 2020 2019 % Change
Northeast                    
(unconsolidated joint ventures) Home 57 48 18.8%   50 53 (5.7)%   83 109 (23.9)%  
(excluding KSA JV) Dollars $45,300 $38,220 18.5%   $37,096 $41,629 (10.9)%   $71,882 $89,957 (20.1)%  
(NJ, PA) Avg. Price $794,737 $796,250 (0.2)%   $741,920 $785,453 (5.5)%   $866,048 $825,294 4.9%  
Mid-Atlantic                    
(unconsolidated joint ventures) Home 17 13 30.8%   12 10 20.0%   47 27 74.1%  
(DE, MD, VA, WV) Dollars $9,265 $11,062 (16.2)%   $6,180 $8,589 (28.0)%   $24,061 $21,312 12.9%  
  Avg. Price $545,000 $850,923 (36.0)%   $515,000 $858,900 (40.0)%   $511,936 $789,333 (35.1)%  
Midwest                    
(unconsolidated joint ventures) Home 6 5 20.0%   4 7 (42.9)%   5 7 (28.6)%  
(IL, OH) Dollars $2,894 $2,609 10.9%   $1,710 $4,441 (61.5)%   $2,469 $4,243 (41.8)%  
  Avg. Price $482,333 $521,800 (7.6)%   $427,500 $634,429 (32.6)%   $493,800 $606,143 (18.5)%  
Southeast                    
(unconsolidated joint ventures) Home 37 25 48.0%   45 32 40.6%   115 115 0.0%  
(FL, GA, SC) Dollars $21,395 $13,092 63.4%   $23,049 $15,589 47.9%   $58,919 $60,758 (3.0)%  
  Avg. Price $578,243 $523,680 10.4%   $512,200 $487,156 5.1%   $512,339 $528,330 (3.0)%  
Southwest                    
(unconsolidated joint ventures) Home 35 26 34.6%   17 29 (41.4)%   63 64 (1.6)%  
(AZ, TX) Dollars $21,798 $14,524 50.1%   $10,539 $17,692 (40.4)%   $39,577 $37,296 6.1%  
  Avg. Price $622,800 $558,615 11.5%   $619,941 $610,069 1.6%   $628,206 $582,750 7.8%  
West                    
(unconsolidated joint ventures) Home 18 15 20.0%   21 18 16.7%   23 22 4.5%  
(CA) Dollars $6,265 $5,429 15.4%   $7,775 $6,291 23.6%   $8,214 $7,820 5.0%  
  Avg. Price $348,056 $361,933 (3.8)%   $370,238 $349,500 5.9%   $357,130 $355,455 0.5%  
Unconsolidated Joint Ventures (2)                    
(excluding KSA JV) Home 170 132 28.8%   149 149 0.0%   336 344 (2.3)%  
  Dollars $106,917 $84,936 25.9%   $86,349 $94,231 (8.4)%   $205,122 $221,386 (7.3)%  
  Avg. Price $628,921 $643,455 (2.3)%   $579,523 $632,423 (8.4)%   $610,482 $643,564 (5.1)%  
                     
KSA JV Only                    
  Home 95 2 4,650.0%   0 3 (100.0)%   297 4 7,325.0%  
  Dollars $14,841 $633 2,244.5%   $0 $796 (100.0)%   $47,157 $837 5,534.1%  
  Avg. Price $156,220 $316,500 (50.6)%   $0 $265,374 (100.0)%   $158,779 $209,333 (24.2)%  
                     
DELIVERIES INCLUDE EXTRAS                    
Notes:                    
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.    
(2) Represents home deliveries, home revenues and average prices for our unconsolidated homebuilding joint ventures for the period. We provide this data as a supplement to our consolidated results as an indicator of the volume managed in our unconsolidated homebuilding joint ventures. Our proportionate share of the income or loss of unconsolidated homebuilding and land development joint ventures is reflected as a separate line item in our consolidated financial statements under “Income (loss) 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