Bay Street News

Hovnanian Enterprises Reports Fiscal 2024 Second Quarter Results

Income Before Income Taxes Increased More Than 50% Year-Over-Year
170 Basis Points Year-Over-Year Increase in Homebuilding Gross Margin Percentage
Net Contracts per Community Increased Year-Over-Year to 13.9

MATAWAN, N.J., May 22, 2024 (GLOBE NEWSWIRE) — Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, reported results for its fiscal second quarter and six months ended April 30, 2024.

RESULTS FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED APRIL 30, 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 APRIL 30, 2024:

DEBT REDUCTION:

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 third quarter of fiscal 2024 and for the full fiscal year. Financial guidance below assumes no adverse changes in current market conditions, including further 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 $147.83 on April 30, 2024.

For the third quarter of fiscal 2024, total revenues are expected to be between $675 million and $775 million, adjusted homebuilding gross margin is expected to be between 21.5% and 23.5%, adjusted income before income taxes is expected to be between $65 million and $75 million and adjusted EBITDA is expected to be between $97 million and $107 million.

For the full fiscal year, total revenues are expected to be between $2.75 billion and $3.00 billion, adjusted homebuilding gross margin is expected to be between 21.5% and 23.0%, adjusted income before income taxes is expected to be between $265 million and $300 million, adjusted EBITDA is expected to be between $395 million and $430 million and fully diluted earnings per share is expected to be between $25 and $29. At the midpoint of our guidance, we anticipate our common book value per share to increase by 45% at October 31, 2024 to approximately $106 per share compared to last year’s value at year-end of $73 per share.

(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:

“Given the rising mortgage rate environment, we are extremely pleased with our performance during the second quarter of fiscal 2024. Our adjusted EBITDA and adjusted pretax income were both significantly above the high end of our guidance,” stated Ara K. Hovnanian, Chairman of the Board, President and Chief Executive Officer. “We are firmly in the higher-for-longer mortgage rate environment yet demand for new homes remains resilient. Our contracts per community for the second quarter of fiscal 2024 increased to 13.9, which was 22% higher than the average second quarter contracts per community since 1997. Website visits and foot traffic in our communities continues to be strong.”

“After paying down over $741 million of debt over the past several years, we are now in a position where we will shift our primary focus to growth rather than using cash flow for further debt reduction in the near term. We expect future revenue growth will facilitate the achievement of both economies of scale and higher levels of profits which will improve our credit metrics and enhance our balance sheet by increasing equity levels. The housing market continues to be driven by an ongoing shortage of housing supply, a stable economy with low levels of unemployment and robust demographic trends. We are optimistic that we will be able to capitalize on these positive fundamentals and continue to deliver top-tier industry returns to our shareholders,” concluded Mr. Hovnanian.

WEBCAST INFORMATION:

Hovnanian Enterprises will webcast its fiscal 2024 second quarter financial results conference call at 11:00 a.m. E.T. on Wednesday, May 22, 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 gain on extinguishment of debt, net (“Adjusted EBITDA”) are not U.S. generally accepted accounting principles (“GAAP”) financial measures. The most directly comparable GAAP financial measure is net income. The reconciliation for historical periods of EBIT, EBITDA and Adjusted EBITDA to net income is presented in a table attached to this earnings release.

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

Adjusted income before income taxes, which is defined as income before income taxes excluding land-related charges and 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.

Total liquidity is comprised of $182.0 million of cash and cash equivalents, $3.7 million of restricted cash required to collateralize letters of credit and $125.0 million availability under the senior secured revolving credit facility as of April 30, 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) adverse weather and other environmental conditions and natural disasters; (5) the seasonality of the Company’s business; (6) the availability and cost of suitable land and improved lots and sufficient liquidity to invest in such land and lots; (7) reliance on, and the performance of, subcontractors; (8) regional and local economic factors, including dependency on certain sectors of the economy, and employment levels affecting home prices and sales activity in the markets where the Company builds homes; (9) increases in cancellations of agreements of sale; (10) increases in inflation; (11) changes in tax laws affecting the after-tax costs of owning a home; (12) legal claims brought against us and not resolved in our favor, such as product liability litigation, warranty claims and claims made by mortgage investors; (13) levels of competition; (14) utility shortages and outages or rate fluctuations; (15) information technology failures and data security breaches; (16) negative publicity; (17) high leverage and restrictions on the Company’s operations and activities imposed by the agreements governing the Company’s outstanding indebtedness; (18) availability and terms of financing to the Company; (19) the Company’s sources of liquidity; (20) changes in credit ratings; (21) government regulation, including regulations concerning development of land, the home building, sales and customer financing processes, tax laws and the environment; (22) operations through unconsolidated joint ventures with third parties; (23) significant influence of the Company’s controlling stockholders; (24) availability of net operating loss carryforwards; (25) loss of key management personnel or failure to attract qualified personnel; (26) public health issues such as major epidemic or pandemic; and (27) 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.
April 30, 2024
Statements of consolidated operations
(In thousands, except per share data)
        Three Months Ended   Six Months Ended
        April 30,   April 30,
        2024   2023   2024   2023
        (Unaudited) (Unaudited)
Total revenues $ 708,380   $ 703,661   $ 1,302,576     $ 1,219,027
Costs and expenses (1)   650,152     662,946     1,228,108       1,167,425
Gain on extinguishment of debt, net           1,371      
Income from unconsolidated joint ventures   11,164     5,408     26,116       12,568
Income before income taxes   69,392     46,123     101,955       64,170
Income tax provision   18,556     11,977     27,215       11,308
Net income   50,836     34,146     74,740       52,862
Less: preferred stock dividends   2,669     2,669     5,338       5,338
Net income available to common stockholders $ 48,167   $ 31,477   $ 69,402     $ 47,524
 
 
 
Per share data:            
Basic:                      
  Net income per common share $ 7.12   $ 4.68   $ 10.22     $ 7.05
  Weighted average number of common shares outstanding 6,457     6,166     6,477       6,176
Assuming dilution:    
  Net income per common share $ 6.66   $ 4.47   $ 9.57     $ 6.74
  Weighted average number of common shares outstanding 6,902     6,462     6,920       6,463
                             
(1) Includes inventory impairments and land option write-offs.
 
 
Hovnanian Enterprises, Inc.
April 30, 2024
Reconciliation of income before income taxes excluding land-related charges and gain on extinguishment of debt, net to income before income taxes
(In thousands)            
 
        Three Months Ended Six Months Ended
        April 30, April 30,
        2024   2023   2024   2023
        (Unaudited) (Unaudited)
Income before income taxes $ 69,392   $ 46,123   $ 101,955     $ 64,170
Inventory impairments and land option write-offs   237     137     539       614
Gain on extinguishment of debt, net           (1,371 )    
Income before income taxes excluding land-related charges and gain on extinguishment of debt, net (1) $ 69,629   $ 46,260   $ 101,123     $ 64,784
 
(1) Income before income taxes excluding land-related charges and 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.
April 30, 2024
Gross margin
(In thousands)
      Homebuilding Gross Margin   Homebuilding Gross Margin
      Three Months Ended   Six Months Ended
      April 30,   April 30,
      2024   2023   2024   2023
      (Unaudited)   (Unaudited)
Sale of homes     $ 686,929     $ 670,708     $ 1,260,565     $ 1,170,353  
Cost of sales, excluding interest expense and land charges (1)       531,385       530,759       979,833       921,722  
Homebuilding gross margin, before cost of sales interest expense and land charges (2)       155,544       139,949       280,732       248,631  
Cost of sales interest expense, excluding land sales interest expense       21,543       20,521       41,441       35,522  
Homebuilding gross margin, after cost of sales interest expense, before land charges (2)       134,001       119,428       239,291       213,109  
Land charges       237       137       539       614  
Homebuilding gross margin     $ 133,764     $ 119,291     $ 238,752     $ 212,495  
 
Homebuilding gross margin percentage       19.5 %     17.8 %     18.9 %     18.1 %
Homebuilding gross margin percentage, before cost of sales interest expense and land charges (2)       22.6 %     20.9 %     22.3 %     21.2 %
Homebuilding gross margin percentage, after cost of sales interest expense, before land charges (2)       19.5 %     17.8 %     19.0 %     18.2 %
 
      Land Sales Gross Margin   Land Sales Gross Margin
      Three Months Ended   Six Months Ended
      April 30,   April 30,
      2024   2023   2024   2023
      (Unaudited)   (Unaudited)
Land and lot sales     $ 213     $ 15,284     $ 1,553     $ 15,613  
Cost of sales, excluding interest (1)       117       9,863       882       9,940  
Land and lot sales gross margin, excluding interest and land charges       96       5,421       671       5,673  
Land and lot sales interest expense             904             925  
Land and lot sales gross margin, including interest     $ 96     $ 4,517     $ 671     $ 4,748  
 
 
(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, 2024
Reconciliation of adjusted EBITDA to net income
(In thousands)
  Three Months Ended   Six Months Ended
  April 30,   April 30,
  2024   2023   2024   2023
  (Unaudited)   (Unaudited)
Net income $ 50,836     $ 34,146     $ 74,740     $ 52,862  
Income tax provision   18,556       11,977       27,215       11,308  
Interest expense   30,512       35,926       60,861       66,041  
EBIT (1)   99,904       82,049       162,816       130,211  
Depreciation and amortization   2,014       4,514       3,612       5,924  
EBITDA (2)   101,918       86,563       166,428       136,135  
Inventory impairments and land option write-offs   237       137       539       614  
Gain on extinguishment of debt, net               (1,371 )      
Adjusted EBITDA (3) $ 102,155     $ 86,700     $ 165,596     $ 136,749  
                       
Interest incurred $ 34,530     $ 35,122     $ 66,491     $ 69,448  
                       
Adjusted EBITDA to interest incurred   2.96       2.47       2.49       1.97  
 
 
 
(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 gain on extinguishment of debt, net.
 
 
Hovnanian Enterprises, Inc.
April 30, 2024
Interest incurred, expensed and capitalized
(In thousands)
  Three Months Ended   Six Months Ended
  April 30,   April 30,
  2024   2023   2024   2023
  (Unaudited)   (Unaudited)
Interest capitalized at beginning of period $ 53,672     $ 60,795     $ 52,060     $ 59,600  
Plus: interest incurred   34,530       35,122       66,491       69,448  
Less: interest expensed   (30,512 )     (35,926 )     (60,861 )     (66,041 )
Less: interest contributed to unconsolidated joint venture (1)   (5,468 )           (5,468 )     (3,016 )
Plus: interest acquired from unconsolidated joint venture (2)         283             283  
Interest capitalized at end of period (3) $ 52,222     $ 60,274     $ 52,222     $ 60,274  
 
(1) Represents capitalized interest which was included as part of the assets contributed to joint ventures the company entered into during the six months ended April 30, 2024 and 2023, respectively. There was no impact to the Condensed Consolidated Statement of Operations as a result of these transactions.
(2) Represents capitalized interest which was included as part of the assets purchased from a joint venture the company closed out during the six months ended April 30, 2023. There was no impact to the Condensed Consolidated Statement of Operations as a result of this transaction.
(3) Capitalized interest amounts are shown gross before allocating any portion of impairments to capitalized interest.
Hovnanian Enterprises, Inc.
April 30, 2024
Calculation of Consolidated Adjusted EBIT ROI
                        TTM
        For the quarter ended     ended
(Dollars in thousands)       7/31/2023   10/31/2023   1/31/2024   4/30/2024   4/30/2024
Consolidated EBIT       $ 103,164   $ 157,478   $ 62,912     $ 99,904   $ 423,458  
Impairments and walk away       $ 308   $ 614   $ 302     $ 237   $ 1,461  
Loss (gain) on extinguishment of debt   $ 4,082   $ 21,556   $ (1,371 )   $ 0   $ 24,267  
Adjusted EBIT       $ 107,554   $ 179,648   $ 61,843     $ 100,141   $ 449,186  
    As of    
    4/30/2023   7/31/2023   10/31/2023   1/31/2024   4/30/2024    
Total inventories   $ 1,484,992   $ 1,411,260   $ 1,349,186   $ 1,463,558     $ 1,417,058    
Less liabilities from inventory not owned, net of debt issuance costs   200,299     145,979     124,254     114,658       86,618    
Less capitalized interest     60,274     55,274     52,060     53,672       52,222    
Plus investments in and advances to unconsolidated joint ventures   85,820     85,260     97,886     110,592       150,674   Five
Quarter
Goodwill                         Average
Inventories less consolidated inventory not owned and capitalized interest plus liabilities from inventory not owned $ 1,310,239   $ 1,295,267   $ 1,270,758   $ 1,405,820     $ 1,428,892   $ 1,342,195  
Consolidated Adjusted EBIT ROI                     33.5%  
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
         
  April 30,     October 31,
  2024     2023
  (Unaudited)     (1)
ASSETS            
Homebuilding:            
Cash and cash equivalents $ 181,966     $ 434,119  
Restricted cash and cash equivalents   8,370       8,431  
Inventories:            
Sold and unsold homes and lots under development   1,135,232       998,841  
Land and land options held for future development or sale   138,641       125,587  
Consolidated inventory not owned   143,185       224,758  
Total inventories   1,417,058       1,349,186  
Investments in and advances to unconsolidated joint ventures   150,674       97,886  
Receivables, deposits and notes, net   24,975       27,982  
Property and equipment, net   39,593       33,946  
Prepaid expenses and other assets   72,747       69,886  
Total homebuilding   1,895,383       2,021,436  
Financial services   142,559       168,671  
Deferred tax assets, net   279,704       302,833  
Total assets $ 2,317,646     $ 2,492,940  
LIABILITIES AND EQUITY            
Homebuilding:            
Nonrecourse mortgages secured by inventory, net of debt issuance costs $ 85,557     $ 91,539  
Accounts payable and other liabilities   379,367       415,480  
Customers’ deposits   45,619       51,419  
Liabilities from inventory not owned, net of debt issuance costs   86,618       124,254  
Senior notes and credit facilities (net of discounts, premiums and debt issuance costs)   932,957       1,051,491  
Accrued interest   18,220       26,926  
Total homebuilding   1,548,338       1,761,109  
Financial services   122,262       148,181  
Income taxes payable         1,861  
Total liabilities   1,670,600       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 April 30, 2024 and October 31, 2023   135,299       135,299  
Common stock, Class A, $0.01 par value – authorized 16,000,000 shares; issued 6,288,200 shares at April 30, 2024 and 6,247,308 shares at October 31, 2023   63       62  
Common stock, Class B, $0.01 par value (convertible to Class A at time of sale) – authorized 2,400,000 shares; issued 736,593 shares at April 30, 2024 and 776,750 shares at October 31, 2023   7       8  
Paid in capital – common stock   747,001       735,946  
Accumulated deficit   (87,795 )     (157,197 )
Treasury stock – at cost – 1,007,426 shares of Class A common stock at April 30, 2024 and 901,379 shares at October 31, 2023; 27,669 shares of Class B common stock at April 30, 2024 and October 31, 2023   (147,529 )     (132,382 )
Total Hovnanian Enterprises, Inc. stockholders’ equity   647,046       581,736  
Noncontrolling interest in consolidated joint ventures         53  
Total equity   647,046       581,789  
Total liabilities and equity $ 2,317,646     $ 2,492,940  

(1) Derived from the audited balance sheet as of October 31, 2023

HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
           
    Three Months Ended April 30,   Six Months Ended April 30,  
    2024     2023   2024     2023  
Revenues:                                
Homebuilding:                                
Sale of homes   $ 686,929     $ 670,708     $ 1,260,565     $ 1,170,353  
Land sales and other revenues     4,284       18,750       9,576       22,307  
Total homebuilding     691,213       689,458       1,270,141       1,192,660  
Financial services     17,167       14,203       32,435       26,367  
Total revenues     708,380       703,661       1,302,576       1,219,027  
                                 
Expenses:                                
Homebuilding:                                
Cost of sales, excluding interest     531,502       540,622       980,715       931,662  
Cost of sales interest     21,543       21,425       41,441       36,447  
Inventory impairments and land option write-offs     237       137       539       614  
Total cost of sales     553,282       562,184       1,022,695       968,723  
Selling, general and administrative     46,489       50,456       95,426       98,374  
Total homebuilding expenses     599,771       612,640       1,118,121       1,067,097  
                                 
Financial services     12,023       10,152       23,494       19,205  
Corporate general and administrative     32,517       25,079       69,650       50,569  
Other interest     8,969       14,501       19,420       29,594  
Other (income) expenses, net     (3,128 )     574       (2,577 )     960  
Total expenses     650,152       662,946       1,228,108       1,167,425  
Gain on extinguishment of debt, net                 1,371        
Income from unconsolidated joint ventures     11,164       5,408       26,116       12,568  
Income before income taxes     69,392       46,123       101,955       64,170  
State and federal income tax provision:                                
State     5,231       1,083       7,437       3,294  
Federal     13,325       10,894       19,778       8,014  
Total income taxes     18,556       11,977       27,215       11,308  
Net income     50,836       34,146       74,740       52,862  
Less: preferred stock dividends     2,669       2,669       5,338       5,338  
Net income available to common stockholders   $ 48,167     $ 31,477     $ 69,402     $ 47,524  
                                 
Per share data:                                
Basic:                                
Net income per common share   $ 7.12     $ 4.68     $ 10.22     $ 7.05  
Weighted-average number of common shares outstanding     6,457       6,166       6,477       6,176  
Assuming dilution:                                
Net income per common share   $ 6.66     $ 4.47     $ 9.57     $ 6.74  
Weighted-average number of common shares outstanding     6,902       6,462       6,920       6,463  
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
    April 30, April 30, April 30,
    2024 2023 % Change 2024 2023 % Change 2024 2023 % Change
Northeast (2) (3)                                
(DE, MD, NJ, OH, PA, VA, WV) Home   549   413 32.9%   331   358 (7.5)%   800   875 (8.6)%
  Dollars $ 326,975 $ 260,320 25.6% $ 197,708 $ 211,535 (6.5)% $ 538,053 $ 513,574 4.8%
  Avg. Price $ 595,583 $ 630,315 (5.5)% $ 597,305 $ 590,880 1.1% $ 672,566 $ 586,942 14.6%
Southeast (3)                                
(FL, GA, SC) Home   164   275 (40.4)%   246   174 41.4%   435   626 (30.5)%
  Dollars $ 74,061 $ 132,954 (44.3)% $ 128,369 $ 100,905 27.2% $ 202,343 $ 351,392 (42.4)%
  Avg. Price $ 451,591 $ 483,469 (6.6)% $ 521,825 $ 579,914 (10.0)% $ 465,156 $ 561,329 (17.1)%
West                                
(AZ, CA, TX) Home   799   789 1.3%   706   693 1.9%   783   817 (4.2)%
  Dollars $ 384,774 $ 392,418 (1.9)% $ 360,852 $ 358,268 0.7% $ 389,094 $ 459,819 (15.4)%
  Avg. Price $ 481,569 $ 497,361 (3.2)% $ 511,122 $ 516,981 (1.1)% $ 496,927 $ 562,814 (11.7)%
Consolidated Total                                
  Home   1,512   1,477 2.4%   1,283   1,225 4.7%   2,018   2,318 (12.9)%
  Dollars $ 785,810 $ 785,692 0.0% $ 686,929 $ 670,708 2.4% $ 1,129,490 $ 1,324,785 (14.7)%
  Avg. Price $ 519,716 $ 531,951 (2.3)% $ 535,408 $ 547,517 (2.2)% $ 559,708 $ 571,521 (2.1)%
Unconsolidated Joint Ventures (2) (3) (4)                                
(excluding KSA JV) Home   249   137 81.8%   177   121 46.3%   528   295 79.0%
  Dollars $ 175,388 $ 91,063 92.6% $ 119,011 $ 80,677 47.5% $ 375,907 $ 213,533 76.0%
  Avg. Price $ 704,369 $ 664,693 6.0% $ 672,379 $ 666,752 0.8% $ 711,945 $ 723,841 (1.6)%
Grand Total                                
  Home   1,761   1,614 9.1%   1,460   1,346 8.5%   2,546   2,613 (2.6)%
  Dollars $ 961,198   876,755 9.6% $ 805,940 $ 751,385 7.3% $ 1,505,397 $ 1,538,318 (2.1)%
  Avg. Price $ 545,825   543,219 0.5% $ 552,014 $ 558,236 (1.1)% $ 591,279 $ 588,717 0.4%
                                 
KSA JV Only                                
  Home   30   1 2,900.0%   5   0 0.0%   105   2,223 (95.3)%
  Dollars $ 7,133   157 4,443.3% $ 1,238 $ 0 0.0% $ 19,853 $ 348,976 (94.3)%
  Avg. Price $ 237,767   157,000 51.4% $ 247,600 $ 0 0.0% $ 189,076 $ 156,984 20.4%
 
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) 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.
(3) Reflects the reclassification of 86 homes and $70.1 million and 13 homes and $10.6 million of contract backlog as of April 30, 2024 from the consolidated Northeast and Southeast segments, respectively, to unconsolidated joint ventures. This is related to the assets and liabilities contributed to a joint venture the company entered into during the three months ended April 30, 2024.
(4) 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
    Six Months Ended Six Months Ending Backlog
    April 30, April 30, April 30,
    2024 2023 % Change 2024 2023 % Change 2024 2023 % Change
Northeast (2) (3)                                
(DE, MD, NJ, OH, PA, VA, WV) Home   932   724 28.7%   663   729 (9.1)%   800   875 (8.6)%
  Dollars $ 575,728 $ 446,170 29.0% $ 387,697 $ 422,409 (8.2)% $ 538,053 $ 513,574 4.8%
  Avg. Price $ 617,734 $ 616,257 0.2% $ 584,762 $ 579,436 0.9% $ 672,566 $ 586,942 14.6%
Southeast (3)                                
(FL, GA, SC) Home   274   439 (37.6)%   441   315 40.0%   435   626 (30.5)%
  Dollars $ 142,732 $ 215,145 (33.7)% $ 233,997 $ 174,641 34.0% $ 202,343 $ 351,392 (42.4)%
  Avg. Price $ 520,920 $ 490,080 6.3% $ 530,605 $ 554,416 (4.3)% $ 465,156 $ 561,329 (17.1)%
West                                
(AZ, CA, TX) Home   1,433   1,102 30.0%   1,242   1,119 11.0%   783   817 (4.2)%
  Dollars $ 691,702 $ 539,505 28.2% $ 638,871 $ 573,303 11.4% $ 389,094 $ 459,819 (15.4)%
  Avg. Price $ 482,695 $ 489,569 (1.4)% $ 514,389 $ 512,335 0.4% $ 496,927 $ 562,814 (11.7)%
Consolidated Total                                
  Home   2,639   2,265 16.5%   2,346   2,163 8.5%   2,018   2,318 (12.9)%
  Dollars $ 1,410,162 $ 1,200,820 17.4% $ 1,260,565 $ 1,170,353 7.7% $ 1,129,490 $ 1,324,785 (14.7)%
  Avg. Price $ 534,355 $ 530,163 0.8% $ 537,325 $ 541,079 (0.7)% $ 559,708 $ 571,521 (2.1)%
Unconsolidated Joint Ventures (2) (3) (4)                                
(excluding KSA JV) Home   401   242 65.7%   344   228 50.9%   528   295 79.0%
  Dollars $ 275,493 $ 162,744 69.3% $ 235,946 $ 159,347 48.1% $ 375,907 $ 213,533 76.0%
  Avg. Price $ 687,015 $ 672,496 2.2% $ 685,890 $ 698,890 (1.9)% $ 711,945 $ 723,841 (1.6)%
Grand Total                                
  Home   3,040   2,507 21.3%   2,690   2,391 12.5%   2,546   2,613 (2.6)%
  Dollars $ 1,685,655 $ 1,363,564 23.6% $ 1,496,511 $ 1,329,700 12.5% $ 1,505,397 $ 1,538,318 (2.1)%
  Avg. Price $ 554,492 $ 543,903 1.9% $ 556,324 $ 556,127 0.0% $ 591,279 $ 588,717 0.4%
                                 
KSA JV Only                                
  Home   99   10 890.0%   44   0 0.0%   105   2,223 (95.3)%
  Dollars $ 21,241 $ 1,555 1,266.0% $ 9,512 $ 0 0.0% $ 19,853 $ 348,976 (94.3)%
  Avg. Price $ 214,556 $ 155,500 38.0% $ 216,182 $ 0 0.0% $ 189,076 $ 156,984 20.4%
 
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) Reflects the reclassification of 8 homes and $6.6 million of contract backlog as of April 30, 2023 from the consolidated Northeast segment to unconsolidated joint ventures. This is related to the assets and liabilities contributed to a joint venture the company entered into during the three months ended January 31, 2023. Also 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.
(3) Reflects the reclassification of 86 homes and $70.1 million and 13 homes and $10.6 million of contract backlog as of April 30, 2024 from the consolidated Northeast and Southeast segments, respectively, to unconsolidated joint ventures. This is related to the assets and liabilities contributed to a joint venture the company entered into during the three months ended April 30, 2024.
(4) 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
    April 30, April 30, April 30,
    2024 2023 % Change 2024 2023 % Change 2024 2023 % Change
Northeast (2) (3)                                
(Unconsolidated Joint Ventures) Home   156   49 218.4%   90   61 47.5%   292   115 153.9%
(Excluding KSA JV) Dollars $ 123,347 $ 35,988 242.7% $ 65,531 $ 41,573 57.6% $ 238,635 $ 82,935 187.7%
(DE, MD, NJ, OH, PA, VA, WV) Avg. Price $ 790,686 $ 734,449 7.7% $ 728,122 $ 681,525 6.8% $ 817,243 $ 721,174 13.3%
Southeast (3)                                
(Unconsolidated Joint Ventures) Home   60   73 (17.8)%   69   49 40.8%   195   161 21.1%
(FL, GA, SC) Dollars $ 35,503 $ 46,755 (24.1)% $ 44,243 $ 33,050 33.9% $ 117,650 $ 119,901 (1.9)%
  Avg. Price $ 591,717 $ 640,479 (7.6)% $ 641,203 $ 674,490 (4.9)% $ 603,333 $ 744,727 (19.0)%
West                                
(Unconsolidated Joint Ventures) Home   33   15 120.0%   18   11 63.6%   41   19 115.8%
(AZ, CA, TX) Dollars $ 16,538 $ 8,320 98.8% $ 9,237 $ 6,054 52.6% $ 19,622 $ 10,697 83.4%
  Avg. Price $ 501,152 $ 554,667 (9.6)% $ 513,167 $ 550,364 (6.8)% $ 478,585 $ 563,000 (15.0)%
Unconsolidated Joint Ventures (2) (3) (4)                                
(Excluding KSA JV) Home   249   137 81.8%   177   121 46.3%   528   295 79.0%
  Dollars $ 175,388 $ 91,063 92.6% $ 119,011 $ 80,677 47.5% $ 375,907 $ 213,533 76.0%
  Avg. Price $ 704,369 $ 664,693 6.0% $ 672,379 $ 666,752 0.8% $ 711,945 $ 723,841 (1.6)%
 
KSA JV Only                                
  Home   30   1 2,900.0%   5   0 0.0%   105   2,223 (95.3)%
  Dollars $ 7,133 $ 157 4,443.3% $ 1,238 $ 0 0.0% $ 19,853 $ 348,976 (94.3)%
  Avg. Price $ 237,767 $ 157,000 51.4% $ 247,600 $ 0 0.0% $ 189,076 $ 156,984 20.4%
 
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) 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.
(3) Reflects the reclassification of 86 homes and $70.1 million and 13 homes and $10.6 million of contract backlog as of April 30, 2024 from the consolidated Northeast and Southeast segments, respectively, to unconsolidated joint ventures. This is related to the assets and liabilities contributed to a joint venture the company entered into during the three months ended April 30, 2024.
(4) 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
    Six Months Ended Six Months Ended Backlog
    April 30, April 30, April 30,
    2024 2023 % Change 2024 2023 % Change 2024 2023 % Change
Northeast (2) (3)                                
(Unconsolidated Joint Ventures) Home   227   99 129.3%   181   126 43.7%   292   115 153.9%
(Excluding KSA JV) Dollars $ 180,703 $ 75,921 138.0% $ 133,707 $ 92,349 44.8% $ 238,635 $ 82,935 187.7%
(DE, MD, NJ, OH, PA, VA, WV) Avg. Price $ 796,048 $ 766,879 3.8% $ 738,713 $ 732,929 0.8% $ 817,243 $ 721,174 13.3%
Southeast (3)                                
(Unconsolidated Joint Ventures) Home   115   112 2.7%   119   80 48.8%   195   161 21.1%
(FL, GA, SC) Dollars $ 66,671 $ 69,720 (4.4)% $ 79,521 $ 55,247 43.9% $ 117,650 $ 119,901 (1.9)%
  Avg. Price $ 579,748 $ 622,500 (6.9)% $ 668,244 $ 690,588 (3.2)% $ 603,333 $ 744,727 (19.0)%
West                                
(Unconsolidated Joint Ventures) Home   59   31 90.3%   44   22 100.0%   41   19 115.8%
(AZ, CA, TX) Dollars $ 28,119 $ 17,103 64.4% $ 22,718 $ 11,751 93.3% $ 19,622 $ 10,697 83.4%
  Avg. Price $ 476,593 $ 551,710 (13.6)% $ 516,318 $ 534,136 (3.3)% $ 478,585 $ 563,000 (15.0)%
Unconsolidated Joint Ventures (2) (3) (4)                                
(Excluding KSA JV) Home   401   242 65.7%   344   228 50.9%   528   295 79.0%
  Dollars $ 275,493 $ 162,744 69.3% $ 235,946 $ 159,347 48.1% $ 375,907 $ 213,533 76.0%
  Avg. Price $ 687,015 $ 672,496 2.2% $ 685,890 $ 698,890 (1.9)% $ 711,945 $ 723,841 (1.6)%
 
KSA JV Only                                
  Home   99   10 890.0%   44   0 0.0%   105   2,223 (95.3)%
  Dollars $ 21,241 $ 1,555 1,266.0% $ 9,512 $ 0 0.0% $ 19,853 $ 348,976 (94.3)%
  Avg. Price $ 214,556 $ 155,500 38.0% $ 216,182 $ 0 0.0% $ 189,076 $ 156,984 20.4%
 
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) Reflects the reclassification of 8 homes and $6.6 million of contract backlog as of April 30, 2023 from the consolidated Northeast segment to unconsolidated joint ventures. This is related to the assets and liabilities contributed to a joint venture the company entered into during the three months ended January 31, 2023. Also 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.
(3) Reflects the reclassification of 86 homes and $70.1 million and 13 homes and $10.6 million of contract backlog as of April 30, 2024 from the consolidated Northeast and Southeast segments, respectively, to unconsolidated joint ventures. This is related to the assets and liabilities contributed to a joint venture the company entered into during the three months ended April 30, 2024.
(4) 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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