Bay Street News

Hovnanian Enterprises Reports Fiscal 2024 Fourth Quarter and Full Year Results

Full Year Income Before Income Taxes Increased 24% Year-Over-Year
44% Year-Over-Year Quarterly Growth in Consolidated Contracts
Total Consolidated Lots Controlled Increased 32% Year-Over-Year
47% Year-Over-Year Growth in Annual Land and Land Development Spend

MATAWAN, N.J., Dec. 05, 2024 (GLOBE NEWSWIRE) — Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, reported results for its fiscal fourth quarter and year ended October 31, 2024.

RESULTS FOR THE THREE-MONTHS AND FULL YEAR ENDED OCTOBER 31, 2024:

(1)When we refer to “Domestic Unconsolidated Joint Ventures”, we are excluding results from our multi-community unconsolidated joint venture in the Kingdom of Saudi Arabia (KSA).

LIQUIDITY AND INVENTORY AS OF OCTOBER 31, 2024:

FINANCIAL GUIDANCE(2):

The Company is providing guidance for total revenues, adjusted homebuilding gross margin, adjusted income before income taxes and adjusted EBITDA for the first quarter of fiscal 2025. Financial guidance below assumes no adverse changes in current market conditions, including deterioration in our supply chain or material increases in mortgage rates, inflation or cancellation rates, and excludes further impact to SG&A expenses from phantom stock expense related solely to stock price movements from the closing price of $176.04 on October 31, 2024.

For the first quarter of fiscal 2025, total revenues are expected to be between $650 million and $750 million, adjusted homebuilding gross margin is expected to be between 17.5% and 18.5%, adjusted income before income taxes is expected to be between $25 million and $35 million and adjusted EBITDA is expected to be between $55 million and $65 million.

(2)The Company cannot provide a reconciliation between its non-GAAP projections and the most directly comparable GAAP measures without unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items required for the reconciliation. These items include, but are not limited to, land-related charges, inventory impairments and land option write-offs and loss (gain) on extinguishment of debt, net. These items are uncertain, depend on various factors and could have a material impact on GAAP reported results.

COMMENTS FROM MANAGEMENT:

“We are pleased that our total full year contracts of 6,007 homes and deliveries of 6,151 homes increased by 16% and 12% respectively year over year, which resulted in better-than-expected adjusted income before income taxes and adjusted EBITDA,” stated Ara K. Hovnanian, Chairman of the Board, President and Chief Executive Officer. “The 48% increase in total fourth quarter contracts followed by the 55% increase in November demonstrates that consumer demand remains strong despite high mortgage rates and geopolitical and economic uncertainty, which persisted throughout this period. We adjusted our balance of pace versus price during the quarter. To spur consumers to action and to help them qualify for mortgages, we offered additional incentives, particularly in the West. Although these contracts are at lower margins, this is a conscious effort and we are very pleased with the tradeoff of pace for margin given our focus on inventory turns, EBIT ROI and quick move in homes.”

“After several years of focusing on debt reduction, we shifted our focus in fiscal 2024 to a strategy with growth as the focal point. As evidence of our commitment to growth, during fiscal 2024, our land and land development spend increased 47% year over year, lot count grew 32% year over year and community count increased 14% year over year. The housing market continues to be driven by positive fundamentals. Given the growth in our lot count, community count and land and land development spend, we think we are well positioned to drive delivery growth in excess of 10% on an annual basis over the next few years and to continue to deliver top-tier industry returns to our shareholders,” concluded Mr. Hovnanian.

WEBCAST INFORMATION:

Hovnanian Enterprises will webcast its fiscal 2024 fourth quarter and full year financial results conference call at 11:00 a.m. E.T. on Thursday, December 5, 2024. 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, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina, Texas, Virginia 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 impairments and land option write-offs and loss (gain) on extinguishment of debt, net (“Adjusted EBITDA”) and the ratio of Adjusted EBITDA to interest incurred are not U.S. generally accepted accounting principles (“GAAP”) financial measures. The most directly comparable GAAP financial measure is net income. The reconciliation for historical periods of EBIT, EBITDA and Adjusted EBITDA to net income is presented in a table attached to this earnings release.

Homebuilding gross margin, before cost of sales interest expense and land charges, and homebuilding gross margin percentage, before cost of sales interest expense and land charges, are non-GAAP financial measures. The most directly comparable GAAP financial measures are homebuilding gross margin and homebuilding gross margin percentage, respectively. The reconciliation for historical periods of homebuilding gross margin, before cost of sales interest expense and land charges, and homebuilding gross margin percentage, before cost of sales interest expense and land charges, to homebuilding gross margin and homebuilding gross margin percentage, respectively, is presented in a table attached to this earnings release.

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

Adjusted earnings before interest and income taxes return on investment (“Adjusted EBIT ROI”) is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income. A reconciliation for historical periods of Adjusted EBIT ROI to consolidated EBIT is presented in a table attached to this earnings release.

Total liquidity is comprised of $210.0 million of cash and cash equivalents, $3.2 million of restricted cash required to collateralize letters of credit and $125.0 million available under a senior secured revolving credit facility as of October 31, 2024.

FORWARD-LOOKING STATEMENTS

All statements in this press release that are not historical facts should be considered as “Forward-Looking Statements” within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such forward-looking statements include but are not limited to statements related to the Company’s goals and expectations with respect to its financial results for future financial periods and statements regarding demand for homes, mortgage rates, inflation, supply chain issues, customer incentives and underlying factors. Although we believe that our plans, intentions and expectations reflected in, or suggested by, such forward-looking statements are reasonable, we can give no assurance that such plans, intentions or expectations will be achieved. By their nature, forward-looking statements: (i) speak only as of the date they are made, (ii) are not guarantees of future performance or results and (iii) are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from those forward-looking statements as a result of a variety of factors. Such risks, uncertainties and other factors include, but are not limited to, (1) changes in general and local economic, industry and business conditions and impacts of a significant homebuilding downturn; (2) shortages in, and price fluctuations of, raw materials and labor, including due to geopolitical events, changes in trade policies, including the imposition of tariffs and duties on homebuilding materials and products and related trade disputes with and retaliatory measures taken by other countries; (3) fluctuations in interest rates and the availability of mortgage financing, including as a result of instability in the banking sector; (4) increases in inflation; (5) adverse weather and other environmental conditions and natural disasters; (6) the seasonality of the Company’s business; (7) the availability and cost of suitable land and improved lots and sufficient liquidity to invest in such land and lots; (8) reliance on, and the performance of, subcontractors; (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) increases in cancellations of agreements of sale; (11) changes in tax laws affecting the after-tax costs of owning a home; (12) legal claims brought against us and not resolved in our favor, such as product liability litigation, warranty claims and claims made by mortgage investors; (13) levels of competition; (14) utility shortages and outages or rate fluctuations; (15) information technology failures and data security breaches; (16) negative publicity; (17) global economic and political instability (18) high leverage and restrictions on the Company’s operations and activities imposed by the agreements governing the Company’s outstanding indebtedness; (19) availability and terms of financing to the Company; (20) the Company’s sources of liquidity; (21) changes in credit ratings; (22) government regulation, including regulations concerning development of land, the home building, sales and customer financing processes, tax laws and the environment; (23) potential liability as a result of the past or present use of hazardous materials; (24) operations through unconsolidated joint ventures with third parties; (25) significant influence of the Company’s controlling stockholders; (26) availability of net operating loss carryforwards; (27) loss of key management personnel or failure to attract qualified personnel; 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, 2023 and the Company’s Quarterly Reports on Form 10-Q for the quarterly periods during fiscal 2024 and subsequent filings with the Securities and Exchange Commission. Except as otherwise required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.

Hovnanian Enterprises, Inc.
October 31, 2024
Statements of consolidated operations
(In thousands, except per share data)
  Three Months Ended   Year Ended
  October 31,   October 31,
    2024       2023       2024       2023  
  (Unaudited)   (Unaudited)
Total revenues $ 979,638     $ 887,032     $ 3,004,918     $ 2,756,016  
Costs and expenses (1)   877,221       766,276       2,741,462       2,517,587  
(Loss) gain on extinguishment of debt, net         (21,556 )     1,371       (25,638 )
Income from unconsolidated joint ventures   15,448       22,191       52,262       43,160  
Income before income taxes   117,865       121,391       317,089       255,951  
Income tax provision   23,516       24,126       75,081       50,060  
Net income   94,349       97,265       242,008       205,891  
Less: preferred stock dividends   2,668       2,668       10,675       10,675  
Net income available to common stockholders $ 91,681     $ 94,597     $ 231,333     $ 195,216  
 
 
 
Per share data:                        
Basic:                        
Net income per common share $ 13.84     $ 13.98     $ 34.40     $ 28.76  
Weighted average number of common shares outstanding   6,487       6,317       6,479       6,230  
Assuming dilution:                        
Net income per common share $ 12.79     $ 13.05     $ 31.79     $ 26.88  
Weighted average number of common shares outstanding   7,017       6,764       7,007       6,666  
 
(1) Includes inventory impairments and land option write-offs.
 
 
Hovnanian Enterprises, Inc.
October 31, 2024
Reconciliation of income before income taxes excluding land-related charges and loss (gain) on extinguishment of debt, net to income before income taxes
(In thousands)
 
  Three Months Ended   Year Ended
  October 31,   October 31,
    2024       2023       2024       2023  
  (Unaudited)   (Unaudited)
Income before income taxes $ 117,865     $ 121,391     $ 317,089     $ 255,951  
Inventory impairments and land option write-offs   7,918       614       11,556       1,536  
Loss (gain) on extinguishment of debt, net         21,556       (1,371 )     25,638  
Income before income taxes excluding land-related charges and loss (gain) on extinguishment of debt, net (1) $ 125,783     $ 143,561     $ 327,274     $ 283,125  
 
(1) Income before income taxes excluding land-related charges and loss (gain) on extinguishment of debt, net is a non-GAAP financial measure. The most directly comparable GAAP financial measure is income before income taxes.
Hovnanian Enterprises, Inc.
October 31, 2024
Gross margin
(In thousands)
  Homebuilding Gross
Margin
  Homebuilding Gross
Margin
  Three Months Ended   Year Ended
  October 31,   October 31,
    2024       2023       2024       2023  
  (Unaudited)   (Unaudited)
Sale of homes $ 927,499     $ 829,733     $ 2,875,488     $ 2,630,457  
Cost of sales, excluding interest expense and land charges (1)   726,491       626,424       2,241,749       2,032,136  
Homebuilding gross margin, before cost of sales interest expense and land charges (2)   201,008       203,309       633,739       598,321  
Cost of sales interest expense, excluding land sales interest expense   25,925       25,101       87,717       79,894  
Homebuilding gross margin, after cost of sales interest expense, before land charges (2)   175,083       178,208       546,022       518,427  
Land charges   7,918       614       8,903       1,536  
Homebuilding gross margin $ 167,165     $ 177,594     $ 537,119     $ 516,891  
 
Homebuilding gross margin percentage   18.0%       21.4%       18.7%       19.6%  
Homebuilding gross margin percentage, before cost of sales interest expense and land charges (2)   21.7%       24.5%       22.0%       22.7%  
Homebuilding gross margin percentage, after cost of sales interest expense, before land charges (2)   18.9%       21.5%       19.0%       19.7%  
 
  Land Sales Gross Margin   Land Sales Gross Margin
  Three Months Ended   Year Ended
  October 31,   October 31,
    2024       2023       2024       2023  
  (Unaudited)   (Unaudited)
Land and lot sales $ 26,974     $ 32,175     $ 42,757     $ 48,217  
Cost of sales, excluding interest (1)   8,846       10,724       21,635       20,664  
Land and lot sales gross margin, excluding interest and land charges   18,128       21,451       21,122       27,553  
Land and lot sales interest expense   125             2,090       926  
Land and lot sales gross margin, including interest $ 18,003     $ 21,451     $ 19,032     $ 26,627  
 
 
(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 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.
October 31, 2024
Reconciliation of adjusted EBITDA to net income
(In thousands)
  Three Months Ended   Year Ended
  October 31,   October 31,
    2024       2023       2024       2023  
  (Unaudited)   (Unaudited)
Net income $ 94,349     $ 97,265     $ 242,008     $ 205,891  
Income tax provision   23,516       24,126       75,081       50,060  
Interest expense   31,120       36,087       120,559       134,902  
EBIT (1)   148,985       157,478       437,648       390,853  
Depreciation and amortization   2,051       1,575       7,730       8,798  
EBITDA (2)   151,036       159,053       445,378       399,651  
Inventory impairments and land option write-offs   7,918       614       11,556       1,536  
Loss (gain) on extinguishment of debt, net         21,556       (1,371 )     25,638  
Adjusted EBITDA (3) $ 158,954     $ 181,223     $ 455,563     $ 426,825  
                       
Interest incurred $ 34,199     $ 32,873     $ 128,777     $ 136,535  
                       
Adjusted EBITDA to interest incurred   4.65       5.51       3.54       3.13  
 
 
(1) EBIT is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income. EBIT represents earnings before interest expense and income taxes.
(2) EBITDA is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income. EBITDA represents earnings before interest expense, income taxes, depreciation and amortization.
(3) Adjusted EBITDA is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income. Adjusted EBITDA represents earnings before interest expense, income taxes, depreciation, amortization, inventory impairments and land option write-offs and loss (gain) on extinguishment of debt, net.
 
 
Hovnanian Enterprises, Inc.
October 31, 2024
Interest incurred, expensed and capitalized
(In thousands)
  Three Months Ended   Year Ended
  October 31,   October 31,
    2024       2023       2024       2023  
  (Unaudited)   (Unaudited)
Interest capitalized at beginning of period $ 54,592     $ 55,274     $ 52,060     $ 59,600  
Plus: interest incurred   34,199       32,873       128,777       136,535  
Less: interest expensed   (31,120 )     (36,087 )     (120,559 )     (134,902 )
Less: interest contributed to unconsolidated joint ventures (1)             (5,468 )     (9,456 )
Plus: interest acquired from unconsolidated joint ventures (2)             2,861       283  
Interest capitalized at end of period (3) $ 57,671     $ 52,060     $ 57,671     $ 52,060  
                       
(1) Represents capitalized interest which was included as part of the assets contributed to joint ventures the company entered into during the year ended October 31, 2024 and 2023, respectively. There was no impact to the Consolidated Statement of Operations as a result of these transactions.
(2) Represents capitalized interest which was included as part of the assets purchased from joint ventures the company closed out during the year ended October 31, 2024 and 2023, respectively. There was no impact to the Consolidated Statement of Operations as a result of these transactions.
(3) Capitalized interest amounts are shown gross before allocating any portion of impairments to capitalized interest.
Hovnanian Enterprises, Inc.
October 31, 2024
Calculation of Consolidated Adjusted EBIT ROI
                      TTM
      For the quarter ended     ended
(Dollars in thousands)       1/31/2024       4/30/2024       7/31/2024       10/31/2024     10/31/2024
Consolidated EBIT     $ 62,912      $ 99,904     $ 125,847     $ 148,985     $ 437,648   
Impairments and walk away     $ 302      $ 237     $ 3,099     $ 7,918     $ 11,556   
Gain on extinguishment of debt   $ (1,371 )                     $ (1,371 )
Adjusted EBIT     $ 61,843      $ 100,141     $ 128,946     $ 156,903     $ 447,833   
  As of    
    10/31/2023       1/31/2024       4/30/2024       7/31/2024       10/31/2024      
Total inventories $ 1,349,186     $ 1,463,558     $ 1,417,058     $ 1,650,470     $ 1,644,804      
Less liabilities from inventory not owned, net of debt issuance costs   124,254       114,658       86,618       135,559       140,298      
Less capitalized interest   52,060       53,672       52,222       54,592       47,888      
Plus Investments in and advances to unconsolidated joint ventures   97,886       110,592       150,674       126,318       142,910     Five
Quarter Average
Inventories less consolidated inventory not owned and capitalized interest plus liabilities from inventory not owned $ 1,270,758     $ 1,405,820     $ 1,428,892     $ 1,586,637     $ 1,599,528     $ 1,458,327  
Consolidated Adjusted EBIT ROI                     30.7%  
                       
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
 
  October 31,     October 31,  
  2024     2023  
             
ASSETS              
Homebuilding:              
Cash and cash equivalents $ 209,976     $ 434,119  
Restricted cash and cash equivalents   7,875       8,431  
Inventories:              
Sold and unsold homes and lots under development   1,195,318       998,841  
Land and land options held for future development or sale   238,499       125,587  
Consolidated inventory not owned   210,987       224,758  
Total inventories   1,644,804       1,349,186  
Investments in and advances to unconsolidated joint ventures   142,910       97,886  
Receivables, deposits and notes, net   29,400       27,982  
Property and equipment, net   43,431       33,946  
Prepaid expenses and other assets   82,525       69,886  
Total homebuilding   2,160,921       2,021,436  
               
Financial services   203,589       168,671  
               
Deferred tax assets, net   241,064       302,833  
Total assets $ 2,605,574     $ 2,492,940  
               
LIABILITIES AND EQUITY              
Homebuilding:              
Nonrecourse mortgages secured by inventory, net of debt issuance costs $ 90,675     $ 91,539  
Accounts payable and other liabilities   433,273       415,480  
Customers’ deposits   41,639       51,419  
Liabilities from inventory not owned, net of debt issuance costs   140,298       124,254  
Senior notes and credit facilities (net of discounts, premiums and debt issuance costs)   896,218       1,051,491  
Accrued interest   14,508       26,926  
Total homebuilding   1,616,611       1,761,109  
               
Financial services   183,135       148,181  
               
Income taxes payable   5,479       1,861  
Total liabilities   1,805,225       1,911,151  
               
Equity:              
Hovnanian Enterprises, Inc. stockholders’ equity:              
Preferred stock, $0.01 par value – authorized 100,000 shares; issued and outstanding 5,600 shares with a liquidation preference of $140,000 at October 31, 2024 and October 31, 2023   135,299       135,299  
Common stock, Class A, $0.01 par value – authorized 16,000,000 shares; issued 6,415,794 shares at October 31, 2024 and 6,247,308 shares at October 31, 2023   64       62  
Common stock, Class B, $0.01 par value (convertible to Class A at time of sale) – authorized 2,400,000 shares; issued 757,023 shares at October 31, 2024 and 776,750 shares at October 31, 2023   8       8  
Paid in capital – common stock   749,752       735,946  
Retained earnings (Accumulated deficit)   74,136       (157,197 )
Treasury stock – at cost – 1,090,179 shares of Class A common stock at October 31, 2024 and 901,379 shares at October 31, 2023; 27,669 shares of Class B common stock at October 31, 2024 and October 31, 2023   (158,910 )     (132,382 )
Total Hovnanian Enterprises, Inc. stockholders’ equity   800,349       581,736  
Noncontrolling interest in consolidated joint ventures         53  
Total equity   800,349       581,789  
Total liabilities and equity $ 2,605,574     $ 2,492,940  
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Per Share Data)
(Unaudited)
 
  Three Months Ended October 31, Year Ended October 31,  
  2024     2023     2024     2023  
                               
Revenues:                              
Homebuilding:                              
Sale of homes $ 927,499     $ 829,733     $ 2,875,488     $ 2,630,457  
Land sales and other revenues   29,398       38,227       55,366       65,471  
Total homebuilding   956,897       867,960       2,930,854       2,695,928  
Financial services   22,741       19,072       74,064       60,088  
Total revenues   979,638       887,032       3,004,918       2,756,016  
                               
Expenses:                              
Homebuilding:                              
Cost of sales, excluding interest   735,337       637,148       2,263,384       2,052,800  
Cost of sales interest   26,050       25,101       89,807       80,820  
Inventory impairment loss and land option write-offs   7,918       614       11,556       1,536  
Total cost of sales   769,305       662,863       2,364,747       2,135,156  
Selling, general and administrative   56,071       55,488       202,486       201,578  
Total homebuilding expenses   825,376       718,351       2,567,233       2,336,734  
                               
Financial services   14,084       11,173       49,940       40,723  
Corporate general and administrative   31,610       25,262       139,740       103,196  
Other interest   5,070       10,986       30,752       54,082  
Other expenses (income), net (1)   1,081       504       (46,203 )     (17,148 )
Total expenses   877,221       766,276       2,741,462       2,517,587  
(Loss) gain on extinguishment of debt, net         (21,556 )     1,371       (25,638 )
Income from unconsolidated joint ventures   15,448       22,191       52,262       43,160  
Income before income taxes   117,865       121,391       317,089       255,951  
State and federal income tax (benefit) provision:                              
State   (2,482 )     445       10,851       3,239  
Federal   25,998       23,681       64,230       46,821  
Total income taxes   23,516       24,126       75,081       50,060  
Net income   94,349       97,265       242,008       205,891  
Less: preferred stock dividends   2,668       2,668       10,675       10,675  
Net income available to common stockholders $ 91,681     $ 94,597     $ 231,333     $ 195,216  
                               
Per share data:                              
Basic:                              
Net income per common share $ 13.84     $ 13.98     $ 34.40     $ 28.76  
Weighted-average number of common shares outstanding   6,487       6,317       6,479       6,230  
Assuming dilution:                              
Net income per common share $ 12.79     $ 13.05     $ 31.79     $ 26.88  
Weighted-average number of common shares outstanding   7,017       6,764       7,007       6,666  
 
(1) Includes gain on consolidation of a joint venture of $45.7 million and $19.1 million for the year ended October 31, 2024 and 2023, respectively
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA EXCLUDES UNCONSOLIDATED JOINT VENTURES)
 
  Contracts (1) Deliveries Contract
  Three Months Ended Three Months Ended Backlog
  October 31, October 31, October 31,
  2024
  2023 % Change     2024    2023 % Change
    2024   2023 % Change  
Northeast                                                
(DE, MD, NJ, OH, PA, VA, WV) Home   463     355 30.4%       579     532 8.8%       782     617 26.7%  
  Dollars $ 279,076   $ 251,558 10.9%     $ 365,115   $ 309,935 17.8%     $ 531,481   $ 420,100 26.5%  
  Avg. Price $ 602,756   $ 708,614 (14.9)%     $ 630,596   $ 582,585 8.2%     $ 679,643   $ 680,875 (0.2)%  
Southeast                                                
(FL, GA, SC) Home   129     136 (5.1)%       206     231 (10.8)%       239     615 (61.1)%  
  Dollars $ 72,709   $ 75,170 (3.3)%     $ 98,003   $ 123,942 (20.9)%     $ 121,974   $ 304,251 (59.9)%  
  Avg. Price $ 563,636   $ 552,721 2.0%     $ 475,743   $ 536,545 (11.3)%     $ 510,351   $ 494,717 3.2%  
West                                                
(AZ, CA, TX) Home   763     447 70.7%       962     754 27.6%       628     592 6.1%  
  Dollars $ 353,779   $ 237,361 49.0%     $ 464,381   $ 395,856 17.3%     $ 283,377   $ 336,263 (15.7)%  
  Avg. Price $ 463,668   $ 531,009 (12.7)%     $ 482,725   $ 525,008 (8.1)%     $ 451,237   $ 568,012 (20.6)%  
Consolidated Total                                                
  Home   1,355     938 44.5%       1,747     1,517 15.2%       1,649     1,824 (9.6)%  
  Dollars $ 705,564   $ 564,089 25.1%     $ 927,499   $ 829,733 11.8%     $ 936,832   $ 1,060,614 (11.7)%  
  Avg. Price $ 520,711   $ 601,374 (13.4)%     $ 530,910   $ 546,956 (2.9)%     $ 568,121   $ 581,477 (2.3)%  
Unconsolidated Joint Ventures (2)                                                
(excluding KSA JV) Home   216     127 70.1%       235     196 19.9%       403     372 8.3%  
  Dollars $ 140,090   $ 84,273 66.2%     $ 141,698   $ 144,004 (1.6)%     $ 297,902   $ 255,639 16.5%  
  Avg. Price $ 648,565   $ 663,567 (2.3)%     $ 602,970   $ 734,714 (17.9)%     $ 739,211   $ 687,202 7.6%  
Grand Total                                                
  Home   1,571     1,065 47.5%       1,982     1,713 15.7%       2,052     2,196 (6.6)%  
  Dollars $ 845,654   $ 648,362 30.4%     $ 1,069,197   $ 973,737 9.8%     $ 1,234,734   $ 1,316,253 (6.2)%  
  Avg. Price $ 538,290   $ 608,791 (11.6)%     $ 539,454   $ 568,440 (5.1)%     $ 601,722   $ 599,387 0.4%  
 
KSA JV Only                                                
  Home   68     1 6,700.0%       3     2,176 (99.9)%       276     50 452.0%  
  Dollars $ 17,341   $ 147 11,696.6%     $ 429   $ 341,318 (99.9)%     $ 64,360   $ 8,124 692.2%  
  Avg. Price $ 255,015   $ 147,000 73.5%     $ 143,000   $ 156,856 (8.8)%     $ 233,188   $ 162,480 43.5%  
 
 
Notes:
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.
(2) Represents home deliveries, home revenues and average prices for our unconsolidated homebuilding joint ventures for the period. We provide this data as a supplement to our consolidated results as an indicator of the volume managed in our unconsolidated homebuilding joint ventures. Our proportionate share of the income or loss of unconsolidated homebuilding and land development joint ventures is reflected as a separate line item in our consolidated financial statements under “Income from unconsolidated joint ventures”.
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA EXCLUDES UNCONSOLIDATED JOINT VENTURES)
 
  Contracts (1) Deliveries Contract
  Years Ended Years Ended Backlog
  October 31, October 31, October 31,
  2024
  2023 % Change     2024   2023 % Change     2024   2023 % Change  
Northeast (2) (3) (4)                                          
(DE, MD, NJ, OH, PA, VA, WV) Home   1,809     1,445 25.2%       1,646     1,618 1.7%       782     617 26.7%  
  Dollars $ 1,114,885   $ 937,153 19.0%     $ 1,007,596   $ 933,156 8.0%     $ 531,481   $ 420,100 26.5%  
  Avg. Price $ 616,299   $ 648,549 (5.0)%     $ 612,148   $ 576,734 6.1%     $ 679,643   $ 680,875 (0.2)%  
Southeast (4)                                          
(FL, GA, SC) Home   517     948 (45.5)%       878     776 13.1%       239     615 (61.1)%  
  Dollars $ 279,431   $ 445,970 (37.3)%     $ 447,804   $ 419,656 6.7%     $ 121,974   $ 304,251 (59.9)%  
  Avg. Price $ 540,485   $ 470,432 14.9%     $ 510,027   $ 540,794 (5.7)%     $ 510,351   $ 494,717 3.2%  
West (4)                                          
(AZ, CA, TX) Home   2,860     2,254 26.9%       2,824     2,484 13.7%       628     592 6.1%  
  Dollars $ 1,367,203   $ 1,126,011 21.4%     $ 1,420,088   $ 1,277,645 11.1%     $ 283,377   $ 336,263 (15.7)%  
  Avg. Price $ 478,043   $ 499,561 (4.3)%     $ 502,864   $ 514,350 (2.2)%     $ 451,237   $ 568,012 (20.6)%  
Consolidated Total                                          
  Home   5,186     4,647 11.6%       5,348     4,878 9.6%       1,649     1,824 (9.6)%  
  Dollars $ 2,761,519   $ 2,509,134 10.1%     $ 2,875,488   $ 2,630,457 9.3%     $ 936,832   $ 1,060,614 (11.7)%  
  Avg. Price $ 532,495   $ 539,947 (1.4)%     $ 537,675   $ 539,249 (0.3)%     $ 568,121   $ 581,477 (2.3)%  
Unconsolidated Joint Ventures                                          
(excluding KSA JV) Home   821     525 56.4%       803     595 35.0%       403     372 8.3%  
(2) (3) (4) (5) Dollars $ 561,063   $ 357,456 57.0%     $ 528,612   $ 424,335 24.6%     $ 297,902   $ 255,639 16.5%  
  Avg. Price $ 683,390   $ 680,869 0.4%     $ 658,296   $ 713,168 (7.7)%     $ 739,211   $ 687,202 7.6%  
Grand Total                                          
  Home   6,007     5,172 16.1%       6,151     5,473 12.4%       2,052     2,196 (6.6)%  
  Dollars $ 3,322,582   $ 2,866,590 15.9%     $ 3,404,100   $ 3,054,792 11.4%     $ 1,234,734   $ 1,316,253 (6.2)%  
  Avg. Price $ 553,118   $ 554,252 (0.2)%     $ 553,422   $ 558,157 (0.8)%     $ 601,722   $ 599,387 0.4%  
 
KSA JV Only                                          
  Home   276     13 2,023.1%       50     2,176 (97.7)%       276     50 452.0%  
  Dollars $ 66,651   $ 2,022 3,196.3%     $ 10,416   $ 341,318 (96.9)%     $ 64,360   $ 8,124 692.2%  
  Avg. Price $ 241,489   $ 155,538 55.3%     $ 208,320   $ 156,856 32.8%     $ 233,188   $ 162,480 43.5%  
 
 
Notes:
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.
(2) Reflects the reclassification of 88 homes and $74.2 million of contract backlog as of July 31, 2024 from the unconsolidated joint ventures to the consolidated Northeast segment. This is related to the assets and liabilities acquired from a joint venture the company closed out during the three months ended July 31, 2024.
(3) Reflects the reclassification of 38 homes and $32.3 million of contract backlog as of April 30, 2023 from the unconsolidated joint ventures to the consolidated Northeast segment. This is related to the assets and liabilities acquired from a joint venture the company closed out during the three months ended April 30, 2023.
(4) Reflects the reclassification of 90 homes and $73.7 million, 59 homes and $33.0 million, and 12 homes and $5.7 million of contract backlog from the consolidated Northeast, Southeast and West segments, respectively, to unconsolidated joint ventures as of July 31, 2023. This is related to the assets and liabilities contributed to a joint venture by the company during the three months ended July 31, 2023.
(5) Represents home deliveries, home revenues and average prices for our unconsolidated homebuilding joint ventures for the period. We provide this data as a supplement to our consolidated results as an indicator of the volume managed in our unconsolidated homebuilding joint ventures. Our proportionate share of the income or loss of unconsolidated homebuilding and land development joint ventures is reflected as a separate line item in our consolidated financial statements under “Income from unconsolidated joint ventures”.
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA UNCONSOLIDATED JOINT VENTURES ONLY)
 
  Contracts (1) Deliveries Contract
  Three Months Ended Three Months Ended Backlog
  October 31, October 31, October 31,
  2024   2023 % Change     2024   2023 % Change     2024   2023 % Change  
Northeast                                          
(Unconsolidated Joint Ventures) Home   120     61 96.7%       76     99 (23.2)%       274     160 71.3%  
(Excluding KSA JV) Dollars $ 83,856   $ 45,261 85.3%     $ 57,427   $ 78,491 (26.8)%     $ 212,370   $ 121,561 74.7%  
(DE, MD, NJ, OH, PA, VA, WV) Avg. Price $ 698,800   $ 741,984 (5.8)%     $ 755,618   $ 792,838 (4.7)%     $ 775,073   $ 759,756 2.0%  
Southeast                                          
(Unconsolidated Joint Ventures) Home   77     49 57.1%       125     73 71.2%       118     186 (36.6)%  
(FL, GA, SC) Dollars $ 47,829   $ 29,476 62.3%     $ 68,650   $ 52,360 31.1%     $ 80,492   $ 119,857 (32.8)%  
  Avg. Price $ 621,156   $ 601,551 3.3%     $ 549,200   $ 717,260 (23.4)%     $ 682,136   $ 644,392 5.9%  
West                                          
(Unconsolidated Joint Ventures) Home   19     17 11.8%       34     24 41.7%       11     26 (57.7)%  
(AZ, CA, TX) Dollars $ 8,405   $ 9,536 (11.9)%     $ 15,621   $ 13,153 18.8%     $ 5,040   $ 14,221 (64.6)%  
  Avg. Price $ 442,368   $ 560,941 (21.1)%     $ 459,441   $ 548,042 (16.2)%     $ 458,182   $ 546,962 (16.2)%  
Unconsolidated Joint Ventures (2)                                          
(Excluding KSA JV) Home   216     127 70.1%       235     196 19.9%       403     372 8.3%  
  Dollars $ 140,090   $ 84,273 66.2%     $ 141,698   $ 144,004 (1.6)%     $ 297,902   $ 255,639 16.5%  
  Avg. Price $ 648,565   $ 663,567 (2.3)%     $ 602,970   $ 734,714 (17.9)%     $ 739,211   $ 687,202 7.6%  
 
KSA JV Only                                          
  Home   68     1 6,700.0%       3     2,176 (99.9)%       276     50 452.0%  
  Dollars $ 17,341   $ 147 11,696.6%     $ 429   $ 341,318 (99.9)%     $ 64,360   $ 8,124 692.2%  
  Avg. Price $ 255,015   $ 147,000 73.5%     $ 143,000   $ 156,856 (8.8)%     $ 233,188   $ 162,480 43.5%  
 
 
Notes:
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.
(2) Represents home deliveries, home revenues and average prices for our unconsolidated homebuilding joint ventures for the period. We provide this data as a supplement to our consolidated results as an indicator of the volume managed in our unconsolidated homebuilding joint ventures. Our proportionate share of the income or loss of unconsolidated homebuilding and land development joint ventures is reflected as a separate line item in our consolidated financial statements under “Income from unconsolidated joint ventures”.
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA UNCONSOLIDATED JOINT VENTURES ONLY)
 
  Contracts (1) Deliveries Contract
  Years Ended Years Ended Backlog
  October 31, October 31, October 31,
  2024   2023 % Change     2024   2023 % Change     2024   2023 % Change  
Northeast (2) (3) (4)                                          
(Unconsolidated Joint Ventures) Home   473     234 102.1%       357     306 16.7%       274     160 71.3%  
(Excluding KSA JV) Dollars $ 361,468   $ 178,235 102.8%     $ 266,566   $ 229,747 16.0%     $ 212,370   $ 121,561 74.7%  
(DE, MD, NJ, OH, PA, VA, WV) Avg. Price $ 764,203   $ 761,688 0.3%     $ 746,683   $ 750,807 (0.5)%     $ 775,073   $ 759,756 2.0%  
Southeast (4)                                          
(Unconsolidated Joint Ventures) Home   257     219 17.4%       340     221 53.8%       118     186 (36.6)%  
(FL, GA, SC) Dollars $ 156,234   $ 139,492 12.0%     $ 209,504   $ 158,014 32.6%     $ 80,492   $ 119,857 (32.8)%  
  Avg. Price $ 607,914   $ 636,950 (4.6)%     $ 616,188   $ 714,995 (13.8)%     $ 682,136   $ 644,392 5.9%  
West (4)                                          
(Unconsolidated Joint Ventures) Home   91     72 26.4%       106     68 55.9%       11     26 (57.7)%  
(AZ, CA, TX) Dollars $ 43,361   $ 39,729 9.1%     $ 52,542   $ 36,574 43.7%     $ 5,040   $ 14,221 (64.6)%  
  Avg. Price $ 476,495   $ 551,792 (13.6)%     $ 495,679   $ 537,853 (7.8)%     $ 458,182   $ 546,962 (16.2)%  
Unconsolidated Joint Ventures                                          
(Excluding KSA JV) (2) (3) (4) (5) Home   821     525 56.4%       803     595 35.0%       403     372 8.3%  
  Dollars $ 561,063   $ 357,456 57.0%     $ 528,612   $ 424,335 24.6%     $ 297,902   $ 255,639 16.5%  
  Avg. Price $ 683,390   $ 680,869 0.4%     $ 658,296   $ 713,168 (7.7)%     $ 739,211   $ 687,202 7.6%  
 
KSA JV Only                                          
  Home   276     13 2,023.1%       50     2,176 (97.7)%       276     50 452.0%  
  Dollars $ 66,651   $ 2,022 3,196.3%     $ 10,416   $ 341,318 (96.9)%     $ 64,360   $ 8,124 692.2%  
  Avg. Price $ 241,489   $ 155,538 55.3%     $ 208,320   $ 156,856 32.8%     $ 233,188   $ 162,480 43.5%  
 
 
Notes:
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.
(2) Reflects the reclassification of 88 homes and $74.2 million of contract backlog as of July 31, 2024 from the unconsolidated joint ventures to the consolidated Northeast segment. This is related to the assets and liabilities acquired from a joint venture the company closed out during the three months ended July 31, 2024.
(3) Reflects the reclassification of 38 homes and $32.3 million of contract backlog as of April 30, 2023 from the unconsolidated joint ventures to the consolidated Northeast segment. This is related to the assets and liabilities acquired from a joint venture the company closed out during the three months ended April 30, 2023.
(4) Reflects the reclassification of 90 homes and $73.7 million, 59 homes and $33.0 million, and 12 homes and $5.7 million of contract backlog from the consolidated Northeast, Southeast and West segments, respectively, to unconsolidated joint ventures as of July 31, 2023. This is related to the assets and liabilities contributed to a joint venture by the company during the three months ended July 31, 2023.
(5) 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: Brad G. O’Connor Jeffrey T. O’Keefe
  Chief Financial Officer & Treasurer Vice President, Investor Relations
  732-747-7800 732-747-7800
     


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