Hovnanian Enterprises Reports Fiscal 2022 First Quarter Results
*81% Year-over-Year Increase in Pretax Profit *
*Gross Margin Percentage Increased 260 Basis Points Year-over-Year*
*Interest Expense as a Percent of Total Revenues Declined 240 Basis Points Year-Over-Year*
*Consolidated Backlog Dollars Increased 13% to $1.89 Billion*
*21% Increase in Consolidated Controlled Lots*
MATAWAN, N.J., March 01, 2022 (GLOBE NEWSWIRE) -- Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, reported results for its fiscal first quarter ended January 31, 2022.
*RESULTS FOR THE FIRST QUARTER ENDED JANUARY 31, 2022:*
· Total revenues were $565.3 million in the first quarter of fiscal 2022, compared with $574.7 million in the same quarter of the prior year.· Homebuilding gross margin percentage, after cost of sales interest expense and land charges, increased 260 basis points to 19.9% for the three months ended January 31, 2022 compared with 17.3% during the same period a year ago.· Homebuilding gross margin percentage, before cost of sales interest expense and land charges, increased 170 basis points to 22.4% during the fiscal 2022 first quarter compared with 20.7% in last year’s first quarter.· Total SG&A was $72.2 million, or 12.8% of total revenues, in the fiscal 2022 first quarter compared with $63.7 million, or 11.1% of total revenues, in the previous year’s first quarter. Excluding $5.7 million of incremental phantom stock expense, total SG&A would have been $66.5 million, or 11.8% of total revenues, for the first quarter of fiscal 2022.· Total interest expense as a percent of total revenues improved by 240 basis points to 4.8% for the first quarter of fiscal 2022 compared with 7.2% during the first quarter of fiscal 2021.· Income before income taxes for the first quarter of fiscal 2022 was $35.4 million, up 80.8%, compared with $19.6 million in the first quarter of the prior fiscal year. Excluding $5.7 million of incremental phantom stock expense, income before income taxes would have been $41.1 million in the first quarter of fiscal 2022.· Net income increased 30.9% to $24.8 million, or $3.07 per diluted common share, for the three months ended January 31, 2022 compared with net income of $19.0 million, or $2.75 per diluted common share, in the first quarter of the previous fiscal year.· Consolidated contract dollars in the first quarter of fiscal 2022 were $798.3 million (1,551 homes) compared with $797.7 million (1,778 homes) in the same quarter last year and increased 53.1% compared to $521.4 million (1,322 homes) in the first quarter of fiscal 2020. Contract dollars, including domestic unconsolidated joint ventures^(1), for the three months ended January 31, 2022 were $870.6 million (1,659 homes) compared with $899.6 million (1,962 homes) in the first quarter of fiscal 2021 but increased 38.6% compared to $628.3 million (1,492 homes) in the first quarter of fiscal 2020.· While consolidated contracts per community decreased to 14.0 for the first quarter ended January 31, 2022 compared to the white-hot pace of 16.9 contracts per community in last year’s first quarter, it is still a strong, above normal pace for the first quarter. Consolidated contracts per community increased 44.3% in the first quarter of fiscal 2022 compared to the pre-COVID sales pace of 9.7 contracts per community during the first quarter of fiscal 2020. Contracts per community, including domestic unconsolidated joint ventures, decreased to 13.2 contracts per community for the first quarter of fiscal 2022 compared with 15.8 contracts per community for the first quarter of fiscal 2021, but increased 41.9% compared to 9.3 contracts per community for the fiscal 2020 first quarter.· As of the end of the first quarter of fiscal 2022, consolidated community count was up 5.7% to 111 communities, compared with 105 communities at January 31, 2021. Community count, including domestic unconsolidated joint ventures, was 126 as of January 31, 2022, compared with 124 communities at the end of the previous year’s first quarter.· The dollar value of consolidated contract backlog, as of January 31, 2022, increased 13.2% to $1.89 billion compared with $1.67 billion as of January 31, 2021. The dollar value of contract backlog, including domestic unconsolidated joint ventures, as of January 31, 2022, increased 13.5% to $2.14 billion compared with $1.88 billion as of January 31, 2021.· Consolidated deliveries decreased to 1,174 homes in the fiscal 2022 first quarter compared with 1,385 homes in the previous year’s first quarter. For the fiscal 2022 first quarter, deliveries, including domestic unconsolidated joint ventures, decreased to 1,283 homes compared with 1,504 homes during the first quarter of fiscal 2021.· The contract cancellation rate for consolidated contracts was 14% for the first quarter ended January 31, 2022 compared with 17% in the fiscal 2021 first quarter. The contract cancellation rate for contracts including domestic unconsolidated joint ventures was 14% for the first quarter of fiscal 2022 compared with 16% 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, 2022:*
· During the first quarter of fiscal 2022, land and land development spending increased to $194.8 million compared with $178.6 million in the same quarter one year ago. This was the third highest of any quarter in the last 12 years.· Total liquidity at January 31, 2022 was $271.0 million, above our targeted liquidity range of $170 million to $245 million.· In the first quarter of fiscal 2022, approximately 2,900 lots were put under option or acquired in 27 consolidated communities.· As of January 31, 2022, the total controlled consolidated lots increased 20.7% to 32,328 compared with 26,782 lots at the end of the first quarter of the previous year. Based on trailing twelve-month deliveries, the current position equaled a 5.4 years’ supply.*FINANCIAL GUIDANCE**^*(2)***:*
The Company is reiterating its financial guidance for the second quarter and for the full year of fiscal 2022. Financial guidance below assumes no adverse changes in current market conditions, including further deterioration in the supply chain, or increased inflation and excludes further impact to SG&A expenses from phantom stock expense related solely to stock price movements from the closing price of $96.88 at January 31, 2022.
· For the second quarter of fiscal 2022, total revenues are expected to be between $700 million and $750 million, gross margin, before cost of sales interest expense and land charges, is expected to be between 23.0% and 25.0% and adjusted pretax income is expected to be between $60 million and $75 million· For fiscal 2022, total revenues are expected to be between $2.80 billion and $3.00 billion, gross margin, before cost of sales interest expense and land charges, is expected to be between 23.5% and 25.5%, adjusted pretax income is expected to be between $260 million and $310 million, adjusted EBITDA is expected to be between $410 million and $460 million and fully diluted earnings per share is expected to be between $26.50 and $32.00. At the midpoint of our guidance, we anticipate our shareholders equity to increase by approximately 105% by October 31, 2022.· Continue to focus on leverage levels and anticipate reducing debt by approximately $200 million during fiscal 2022.*^(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 impairment loss and land option write-offs and loss (gain) on extinguishment of debt. These items are uncertain, depend on various factors and could have a material impact on GAAP reported results.
*COMMENTS FROM MANAGEMENT:*
“The impact of the Omicron COVID variant further exacerbated industry supply chain disruptions and labor shortages resulting in longer construction cycle times and pushing some expected first quarter home deliveries into our second quarter. In spite of the challenges with missed deliveries, we are pleased that our first quarter adjusted profit exceeded the high end of the guidance,” stated Ara K. Hovnanian, Chairman of the Board, President and Chief Executive Officer. “Demand for new homes during our first quarter was strong and exceeded our expectations. Despite the mortgage rate increases since January 1st, demand remained robust through February and we have continued to raise home prices in approximately 80% of our communities. All signs point to a strong spring selling season. As we move forward, we will continue to capitalize on current market conditions, focus on tactics to deal with supply chain disruptions and make progress on improving our profitability.”
“Due to continued supply chain issues, persistent labor market tightness and lumber price fluctuations, we reiterate, rather than increase, our prior guidance for both the second quarter and fiscal 2022 year,” stated Larry Sorsby, Executive Vice President and Chief Financial Officer. Our guidance reflects a large year over year increase in both our adjusted gross margin and adjusted pretax income during the second quarter and full year of fiscal 2022 and we remain confident we will achieve it. Given our expectations for strong profitability and cash flow in fiscal 2022, we anticipate paying down an additional $200 million of debt in fiscal 2022 after reducing debt by approximately $200 million in 2021. We remain focused on strengthening our balance sheet and plan to continue to increase shareholders equity and reduce debt further in future years.”
*WEBCAST INFORMATION:*
Hovnanian Enterprises will webcast its fiscal 2022 first quarter financial results conference call at 11:00 a.m. E.T. on Tuesday, March 1, 2022. 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 (“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 pretax income, which is defined as income before income taxes excluding land-related charges is a non-GAAP financial measure. This earnings release also presents income before income taxes adjusted to exclude the impact of incremental phantom stock expense. The most directly comparable GAAP financial measure is income before income taxes. The reconciliation for historical periods of adjusted pretax income to income before income taxes is presented in a table attached to this earnings release.*
*Total liquidity is comprised of $271.0 million of cash and cash equivalents, $8.1 million of restricted cash required to collateralize letters of credit and $125.0 million availability under the senior secured revolving credit facility as of January 31, 2022.*
*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) shortages in, and price fluctuations of, raw materials and labor, including due to 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) the outbreak and spread of COVID-19 and the measures that governments, agencies, law enforcement and/or health authorities implement to address it; (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) fluctuations in interest rates and the availability of mortgage financing; (11) changes in tax laws affecting the after-tax costs of owning a home; (12) 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) increases in inflation; 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, 2021 and the Company’s Quarterly Reports on Form 10-Q for the quarterly periods during fiscal 2022 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.*
*January 31, 2022*
Statements of consolidated operations
(In thousands, except per share data) Three Months Ended January 31, 2022 2021 (Unaudited)
Total revenues $565,313 $574,664
Costs and expenses (1) 538,103 556,995
Income from unconsolidated joint ventures 8,191 1,916
Income before income taxes 35,401 19,585
Income tax provision 10,593 626
Net income 24,808 18,959
Less: preferred stock dividends 2,669 -
Net income available to common stockholders $22,139 $18,959
Per share data:
Basic:
Net income per common share $3.12 $2.79
Weighted average number of common shares outstanding 6,389 6,225
Assuming dilution:
Net income per common share $3.07 $2.75
Weighted average number of common shares outstanding 6,501 6,303
(1) Includes inventory impairment loss and land option write-offs.
*Hovnanian Enterprises, Inc.*
*January 31, 2022*
Reconciliation of adjusted pretax income or income before income taxes excluding land-related charges, to income before income taxes
(In thousands) Three Months Ended January 31, 2022 2021 (Unaudited)
Income before income taxes $35,401 $19,585
Inventory impairment loss and land option write-offs 99 1,877
Income before income taxes excluding land-related charges (1) $35,500 $21,462
(1) Income before income taxes excluding land-related charges is a non-GAAP financial measure. The most directly comparable GAAP financial measure is income before income taxes.
*Hovnanian Enterprises, Inc.*
*January 31, 2022*
Gross margin
(In thousands) Homebuilding Gross Margin Three Months Ended January 31, 2022 2021 (Unaudited)
Sale of homes $551,366 $551,365
Cost of sales, excluding interest expense and land charges (1) 427,873 437,372
Homebuilding gross margin, before cost of sales interest expense and land charges (2) 123,493 113,993
Cost of sales interest expense, excluding land sales interest expense 13,724 16,717
Homebuilding gross margin, after cost of sales interest expense, before land charges (2) 109,769 97,276
Land charges 99 1,877
Homebuilding gross margin $109,670 $95,399
Homebuilding Gross margin percentage 19.9 % 17.3 %
Homebuilding Gross margin percentage, before cost of sales interest expense and land charges (2) 22.4 % 20.7 %
Homebuilding Gross margin percentage, after cost of sales interest expense, before land charges (2) 19.9 % 17.6 % Land Sales Gross Margin Three Months Ended January 31, 2022 2021 (Unaudited)
Land and lot sales $34 $3,362
Land and lot sales cost of sales, excluding interest and land charges (1) 44 2,266
Land and lot sales gross margin, excluding interest and land charges (10 ) 1,096
Land and lot sales interest 21 448
Land and lot sales gross margin, including interest and excluding land charges $(31 ) $648
(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, 2022 *
Reconciliation of adjusted EBITDA to net income (loss)
(In thousands) Three Months Ended January 31, 2022 2021 (Unaudited)
Net income $24,808 $18,959
Income tax provision 10,593 626
Interest expense 27,138 41,140
EBIT (1) 62,539 60,725
Depreciation and amortization 1,175 1,338
EBITDA (2) 63,714 62,063
Inventory impairment loss and land option write-offs 99 1,877
Adjusted EBITDA (3) $63,813 $63,940
Interest incurred $32,783 $41,457
Adjusted EBITDA to interest incurred 1.95 1.54
(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 and inventory impairment loss and land option write-offs.
*Hovnanian Enterprises, Inc.*
*January 31, 2022*
Interest incurred, expensed and capitalized
(In thousands) Three Months Ended January 31, 2022 2021 (Unaudited)
Interest capitalized at beginning of period $58,159 $65,010
Plus interest incurred 32,783 41,457
Less interest expensed 27,138 41,140
Interest capitalized at end of period (1) $63,804 $65,327
(1) Capitalized interest amounts are shown gross before allocating any portion of impairments to capitalized interest.
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
January 31, October 31, 2022 2021 (Unaudited) (1)
ASSETS
Homebuilding:
Cash and cash equivalents $137,898 $245,970
Restricted cash and cash equivalents 14,260 16,089
Inventories:
Sold and unsold homes and lots under development 1,112,928 1,019,541
Land and land options held for future development or sale 175,615 135,992
Consolidated inventory not owned 124,845 98,727
Total inventories 1,413,388 1,254,260
Investments in and advances to unconsolidated joint ventures 67,467 60,897
Receivables, deposits and notes, net 34,798 39,934
Property, plant and equipment, net 20,017 18,736
Prepaid expenses and other assets 62,069 56,186
Total homebuilding 1,749,897 1,692,072
Financial services 143,057 202,758
Deferred tax assets, net 416,213 425,678
Total assets $2,309,167 $2,320,508
LIABILITIES AND EQUITY
Homebuilding:
Nonrecourse mortgages secured by inventory, net of debt issuance costs $196,386 $125,089
Accounts payable and other liabilities 335,669 426,381
Customers’ deposits 83,219 68,295
Liabilities from inventory not owned, net of debt issuance costs 75,344 62,762
Senior notes and credit facilities (net of discounts, premiums and debt issuance costs) 1,247,221 1,248,373
Accrued Interest 47,269 28,154
Total homebuilding 1,985,108 1,959,054
Financial services 122,199 182,219
Income taxes payable 4,973 3,851
Total liabilities 2,112,280 2,145,124
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, 2022 and October 31, 2021 135,299 135,299
Common stock, Class A, $0.01 par value - authorized 16,000,000 shares; issued 6,084,670 shares at January 31, 2022 and 6,066,164 shares at October 31, 2021 61 61
Common stock, Class B, $0.01 par value (convertible to Class A at time of sale) - authorized 2,400,000 shares; issued 704,273 shares at January 31, 2022 and 686,876 shares at October 31, 2021 7 7
Paid in capital - common stock 721,569 722,118
Accumulated deficit (545,088 ) (567,228 )
Treasury stock - at cost – 470,430 shares of Class A common stock and 27,669 shares of Class B common stock at January 31, 2022 and October 31, 2021 (115,360 ) (115,360 )
Total Hovnanian Enterprises, Inc. stockholders’ equity 196,488 174,897
Noncontrolling interest in consolidated joint ventures 399 487
Total equity 196,887 175,384
Total liabilities and equity $2,309,167 $2,320,508
(1) Derived from the audited balance sheet as of October 31, 2021HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Per Share Data)
(Unaudited)
Three Months Ended January 31, 2022 2021
Revenues:
Homebuilding:
Sale of homes $551,366 $551,365
Land sales and other revenues 638 3,802
Total homebuilding 552,004 555,167
Financial services 13,309 19,497
Total revenues 565,313 574,664
Expenses:
Homebuilding:
Cost of sales, excluding interest 427,917 439,638
Cost of sales interest 13,745 17,165
Inventory impairment loss and land option write-offs 99 1,877
Total cost of sales 441,761 458,680
Selling, general and administrative 42,746 40,225
Total homebuilding expenses 484,507 498,905
Financial services 10,400 10,354
Corporate general and administrative 29,435 23,483
Other interest 13,393 23,975
Other operations 368 278
Total expenses 538,103 556,995
Income from unconsolidated joint ventures 8,191 1,916
Income before income taxes 35,401 19,585
State and federal income tax provision (benefit):
State 2,543 626
Federal 8,050 -
Total income taxes 10,593 626
Net income 24,808 18,959
Less: preferred stock dividends 2,669 -
Net income available to common stockholders $22,139 $18,959
Per share data:
Basic:
Net income per common share $3.12 $2.79
Weighted-average number of common shares outstanding 6,389 6,225
Assuming dilution:
Net income per common share $3.07 $2.75
Weighted-average number of common shares outstanding 6,501 6,303
*HOVNANIAN ENTERPRISES, INC.*
*(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)*
*(SEGMENT DATA **EXCLUDES** UNCONSOLIDATED JOINT VENTURES)*
*(UNAUDITED)* *Contracts (1)* *Deliveries* *Contract* *Three Months Ended* *Three Months Ended* *Backlog* *January 31,* *January 31,* *January 31,* *2022* *2021* *% Change* *2022* *2021* *% Change* *2022* *2021* *% Change*
*Northeast*
(NJ, PA) Home 96 43 123.3% 28 53 (47.2)% 240 120 100.0% Dollars $70,068 $33,670 108.1% $20,357 $31,216 (34.8)% $188,106 $84,566 122.4% Avg. Price $729,875 $783,023 (6.8)% $727,036 $588,981 23.4% $783,775 $704,717 11.2%
*Mid-Atlantic *
(DE, MD, VA, WV) Home 205 229 (10.5)% 168 176 (4.5)% 545 610 (10.7)% Dollars $131,716 $144,481 (8.8)% $99,400 $92,911 7.0% $374,506 $342,685 9.3% Avg. Price $642,517 $630,921 1.8% $591,667 $527,903 12.1% $687,167 $561,779 22.3%
*Midwest *
(IL, OH) Home 167 238 (29.8)% 162 183 (11.5)% 610 651 (6.3)% Dollars $59,793 $79,386 (24.7)% $54,922 $56,593 (3.0)% $199,317 $192,310 3.6% Avg. Price $358,042 $333,555 7.3% $339,025 $309,251 9.6% $326,749 $295,407 10.6%
*Southeast*
(FL, GA, SC) Home 228 210 8.6% 104 102 2.0% 545 406 34.2% Dollars $126,454 $98,194 28.8% $55,495 $45,648 21.6% $292,384 $199,517 46.5% Avg. Price $554,623 $467,590 18.6% $533,606 $447,529 19.2% $536,484 $491,421 9.2%
*Southwest*
(AZ, TX) Home 656 736 (10.9)% 498 582 (14.4)% 1,234 1,220 1.1% Dollars $290,090 $267,825 8.3% $194,330 $190,182 2.2% $555,580 $437,868 26.9% Avg. Price $442,210 $363,893 21.5% $390,221 $326,773 19.4% $450,227 $358,908 25.4%
*West *
(CA) Home 199 322 (38.2)% 214 289 (26.0)% 450 788 (42.9)% Dollars $120,141 $174,114 (31.0)% $126,862 $134,815 (5.9)% $275,709 $409,186 (32.6)% Avg. Price $603,724 $540,727 11.7% $592,813 $466,488 27.1% $612,687 $519,272 18.0%
*Consolidated Total* Home 1,551 1,778 (12.8)% 1,174 1,385 (15.2)% 3,624 3,795 (4.5)% Dollars $798,262 $797,670 0.1% $551,366 $551,365 0.0% $1,885,602 $1,666,132 13.2% Avg. Price $514,676 $448,633 14.7% $469,647 $398,097 18.0% $520,310 $439,033 18.5%
*Unconsolidated Joint Ventures (2)*
*(excluding KSA JV)* Home 108 184 (41.3)% 109 119 (8.4)% 374 391 (4.3)% Dollars $72,308 $101,907 (29.0)% $63,620 $71,113 (10.5)% $250,307 $215,318 16.2% Avg. Price $669,519 $553,842 20.9% $583,670 $597,588 (2.3)% $669,270 $550,685 21.5%
*Grand Total* Home 1,659 1,962 (15.4)% 1,283 1,504 (14.7)% 3,998 4,186 (4.5)% Dollars $870,570 $899,577 (3.2)% $614,986 $622,478 (1.2)% $2,135,909 $1,881,450 13.5% Avg. Price $524,756 $458,500 14.5% $479,334 $413,882 15.8% $534,244 $449,462 18.9%
*KSA JV Only* Home 227 213 6.6% 0.0% 2,140 1,305 64.0% Dollars $35,747 $33,373 7.1% $0 $0 0.0% $336,131 $205,046 63.9% Avg. Price $157,476 $156,681 0.5% $0 $0 0.0% $157,071 $157,123 (0.0)%
DELIVERIES INCLUDE EXTRAS
Notes:
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.
(2) Represents home deliveries, home revenues and average prices for our unconsolidated homebuilding joint ventures for the period. We provide this data as a supplement to our consolidated results as an indicator of the volume managed in our unconsolidated homebuilding joint ventures. Our proportionate share of the income or loss of unconsolidated homebuilding and land development joint ventures is reflected as a separate line item in our consolidated financial statements under “Income from unconsolidated joint ventures”.*HOVNANIAN ENTERPRISES, INC.*
*(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)*
*(SEGMENT DATA UNCONSOLIDATED JOINT VENTURES ONLY)*
*(UNAUDITED)* *Contracts (1)* *Deliveries* *Contract* *Three Months Ended* *Three Months Ended* *Backlog* *January 31,* *January 31,* *January 31,* *2022* *2021* *% Change* *2022* *2021* *% Change* *2022* *2021* *% Change*
*Northeast*
(unconsolidated joint ventures) Home 13 13 0.0% 4 14 (71.4)% 19 17 11.8%
*(excluding KSA JV)* Dollars $7,806 $17,835 (56.2)% $5,695 $17,695 (67.8)% $12,301 $24,675 (50.1)%
*(NJ, PA)* Avg. Price $600,462 $1,371,923 (56.2)% $1,423,750 $1,263,929 12.6% $647,421 $1,451,471 (55.4)%
*Mid-Atlantic*
(unconsolidated joint ventures) Home 37 23 60.9% 27 30 (10.0)% 126 83 51.8%
*(DE, MD, VA, WV)* Dollars $23,738 $13,326 78.1% $17,520 $14,401 21.7% $82,825 $45,745 81.1% Avg. Price $641,568 $579,391 10.7% $648,889 $480,033 35.2% $657,341 $551,145 19.3%
*Midwest*
(unconsolidated joint ventures) Home 1 (100.0)% 1 (100.0)% 0.0%
*(IL, OH)* Dollars $0 $409 (100.0)% $0 $409 (100.0)% $0 $0 0.0% Avg. Price $0 $409,000 (100.0)% $0 $409,000 (100.0)% $0 $0 0.0%
*Southeast*
(unconsolidated joint ventures) Home 38 117 (67.5)% 52 51 2.0% 197 215 (8.4)%
*(FL, GA, SC)* Dollars $31,525 $57,758 (45.4)% $28,683 $27,042 6.1% $140,613 $109,244 28.7% Avg. Price $829,605 $493,658 68.1% $551,596 $530,235 4.0% $713,772 $508,112 40.5%
*Southwest*
(unconsolidated joint ventures) Home 4 (100.0)% 15 (100.0)% 35 (100.0)%
*(AZ, TX)* Dollars $0 $3,152 (100.0)% $0 $8,739 (100.0)% $0 $21,216 (100.0)% Avg. Price $0 $788,000 (100.0)% $0 $582,600 (100.0)% $0 $606,171 (100.0)%
*West*
(unconsolidated joint ventures) Home 20 26 (23.1)% 26 8 225.0% 32 41 (22.0)%
*(CA)* Dollars $9,239 $9,427 (2.0)% $11,722 $2,827 314.6% $14,568 $14,438 0.9% Avg. Price $461,950 $362,577 27.4% $450,846 $353,375 27.6% $455,250 $352,146 29.3%
*Unconsolidated Joint Ventures*
*(excluding KSA JV)(2)* Home 108 184 (41.3)% 109 119 (8.4)% 374 391 (4.3)% Dollars $72,308 $101,907 (29.0)% $63,620 $71,113 (10.5)% $250,307 $215,318 16.2% Avg. Price $669,519 $553,842 20.9% $583,670 $597,588 (2.3)% $669,270 $550,685 21.5%
*KSA JV Only* Home 227 213 6.6% 0.0% 2,140 1,305 64.0% Dollars $35,747 $33,373 7.1% $0 $0 0.0% $336,131 $205,046 63.9% Avg. Price $157,476 $156,681 0.5% $0 $0 0.0% $157,071 $157,123 (0.0)%
DELIVERIES INCLUDE EXTRAS
Notes:
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.
(2) Represents home deliveries, home revenues and average prices for our unconsolidated homebuilding joint ventures for the period. We provide this data as a supplement to our consolidated results as an indicator of the volume managed in our unconsolidated homebuilding joint ventures. Our proportionate share of the income or loss of unconsolidated homebuilding and land development joint ventures is reflected as a separate line item in our consolidated financial statements under “Income from unconsolidated joint ventures”.
*Contact:* J. Larry Sorsby
Executive Vice President & CFO
732-747-7800 Jeffrey T. O’Keefe
Vice President, Investor Relations
732-747-7800