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Hovnanian Enterprises Reports Fiscal 2022 Third Quarter Results
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Hovnanian Enterprises Reports Fiscal 2022 Third Quarter Results

81% Year-over-Year Increase in Pretax Profit
Gross Margin Percentage Increased 390 Basis Points Year-over-Year
Interest Expense as Percent of Revenue Declined 140 Basis Points Year-over-Year
Backlog Cancellation Rate Increased to 8% From 6% Last Year
Consolidated Contract Dollars Declined 23% Year-over-Year
Increased Full Year EBITDA, Gross Margin and Adjusted Pretax Profit Guidance

MATAWAN, N.J., Sept. 01, 2022 (GLOBE NEWSWIRE) — Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, reported results for its fiscal third quarter and nine-month period ended July 31, 2022.

RESULTS FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED JULY 31, 2022:

  • Total revenues increased 11.1% to $767.6 million in the third quarter of fiscal 2022, compared with $690.7 million in the same quarter of the prior year. For the nine months ended July 31, 2022, total revenues were $2.04 billion compared with $1.97 billion in the same period during the prior year.
  • Homebuilding gross margin percentage, after cost of sales interest expense and land charges, increased 390 basis points to 23.1% for the three months ended July 31, 2022 compared with 19.2% during the same period a year ago. During the first nine months of fiscal 2022, homebuilding gross margin percentage, after cost of sales interest expense and land charges, was 22.3%, up 400 basis points, compared with 18.3% during the same period a year ago.
  • Homebuilding gross margin percentage, before cost of sales interest expense and land charges, increased 420 basis points to 26.3% during the fiscal 2022 third quarter compared with 22.1% in last year’s third quarter. For the nine months ended July 31, 2022, homebuilding gross margin percentage, before cost of sales interest expense and land charges, was 25.3%, up 390 basis points, compared with 21.4% in the same period of the previous year.
  • Total SG&A was $74.9 million, or 9.8% of total revenues (excluding $0.3 million of incremental phantom stock expense, total SG&A would have been $74.6 million or 9.7% of total revenues), in the fiscal 2022 third quarter compared with $60.3 million, or 8.7% of total revenues (excluding $6.7 million of incremental phantom stock benefit, total SG&A would have been $67.0 million or 9.7% of total revenues), in the previous year’s third quarter. During the first nine months of fiscal 2022, total SG&A was $215.3 million, or 10.6% of total revenues (there was no incremental phantom stock expense), compared with $206.6 million, or 10.5% of total revenues (excluding $10.8 million of incremental phantom stock expense, total SG&A would have been $195.8 million or 9.9% of total revenues), in the same period of the prior fiscal year.
  • Total interest expense as a percent of total revenues improved by 140 basis points to 4.2% for the third quarter of fiscal 2022 compared with 5.6% during the third quarter of fiscal 2021. For the first nine months of fiscal 2022, total interest expense as a percent of total revenues improved 170 basis points to 4.6% compared with 6.3% in the first nine months of the previous fiscal year.
  • Income before income taxes for the third quarter of fiscal 2022 was $111.9 million, up 81.1%, compared with $61.8 million in the third quarter of the prior fiscal year. For the first nine months of fiscal 2022, income before income taxes increased 103.1% to $228.3 million compared with $112.4 million during the same period of the prior fiscal year.
  • Net income was $82.6 million, or $10.82 per diluted common share, for the three months ended July 31, 2022 compared with net income of $47.7 million, or $6.72 per diluted common share, in the third quarter of the previous fiscal year. For the first nine months of fiscal 2022, net income was $169.9 million, or $21.77 per diluted common share, compared with net income, including the $468.6 million benefit of the valuation allowance reduction, of $555.3 million, or $78.51 per diluted common share, in the same period during fiscal 2021.
  • Consolidated contract dollars in the third quarter of fiscal 2022 declined 23.2% to $467.9 million (799 homes) compared with $609.1 million (1,211 homes) in the same quarter last year. Contract dollars, including domestic unconsolidated joint ventures(1), for the three months ended July 31, 2022 declined to $549.5 million (914 homes) compared with $716.2 million (1,376 homes) in the third quarter of fiscal 2021.
  • Consolidated contract dollars in the first nine months of fiscal 2022 were $2.13 billion (3,875 homes) compared with $2.23 billion (4,760 homes) in the same period last year. Contract dollars, including domestic unconsolidated joint ventures(1), for the nine months ended July 31, 2022 were $2.40 billion (4,262, homes) compared with $2.55 billion (5,298 homes) in the first nine months of fiscal 2021.
  • Consolidated contracts per community were 7.4 for the third quarter ended July 31, 2022 compared to 11.6 contracts per community in last year’s third quarter. Contracts per community, including domestic unconsolidated joint ventures, decreased to 7.4 contracts per community for the third quarter of fiscal 2022 compared with 11.5 contracts per community for the third quarter of fiscal 2021.
  • As of the end of the third quarter of fiscal 2022, consolidated community count increased to 108 communities, compared with 104 communities on July 31, 2021. Community count, including domestic unconsolidated joint ventures, was 124 as of July 31, 2022, compared with 120 communities at the end of the previous year’s third quarter.
  • The dollar value of consolidated contract backlog, as of July 31, 2022, increased 2.4% to $1.79 billion compared with $1.75 billion as of July 31, 2021. The dollar value of contract backlog, including domestic unconsolidated joint ventures, as of July 31, 2022, increased 4.1% to $2.07 billion compared with $1.99 billion as of July 31, 2021.
  • Sale of home revenues increased 11.1% to $736.7 million (1,412 homes) in the fiscal 2022 third quarter compared with $663.3 million (1,498 homes) in the previous year’s third quarter. During the fiscal 2022 third quarter, sale of homes revenues, including domestic unconsolidated joint ventures, increased to $815.0 million (1,533 homes) compared with $765.5 million (1,677 homes) during the third quarter of fiscal 2021.
  • For the first nine months of fiscal 2022, sale of homes revenues were $1.97 billion (3,939 homes) compared with $1.89 billion (4,501) homes in the first nine months of the previous year. For the first nine months of fiscal 2022, sale of homes revenues, including domestic unconsolidated joint ventures, were $2.20 billion (4,311 homes) compared with $2.16 billion (4,954 homes) during the same period of fiscal 2021.
  • The beginning backlog cancellation rate for consolidated contracts and for contracts including domestic unconsolidated joint ventures were both 8% for the third quarter ended July 31, 2022 compared with 6% for both in the fiscal 2021 third quarter. The historical average beginning backlog cancellation rate since fiscal 2013 is 13%.
  • Primarily due to lower gross contracts, as a result of a sharp rise in mortgage rates since January, year-over-year home price increases, record high inflation levels and fears of an economic recession, the gross contract cancellation rate for consolidated contracts increased to 27% for the third quarter ended July 31, 2022 compared with 16% in the fiscal 2021 third quarter. The gross contract cancellation rate for contracts including domestic unconsolidated joint ventures was 26% for the third quarter of fiscal 2022 compared with 15% in the third 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 JULY 31, 2022:  
  • During the third quarter of fiscal 2022, land and land development spending was $204.5 million compared with $177.6 million in the same quarter one year ago. For the first nine months of fiscal 2022, land and land development spending was $554.1 million compared with $531.2 million in the same period one year ago.
  • After early retirement of $100 million of senior secured notes in the second quarter of fiscal 2022 in addition to the $181 million of senior secured notes retired in fiscal 2021, total liquidity as of July 31, 2022 was $357.4 million, well above our targeted liquidity range of $170 million to $245 million.
  • In the third quarter of fiscal 2022, approximately 1,900 lots were put under option or acquired in 27 consolidated communities.
  • As of July 31, 2022, the total controlled consolidated lots were 31,913 an increase compared with 31,002 lots at the end of the third quarter of the previous year and a decrease compared to 33,501 lots on April 30, 2022. Based on trailing twelve-month deliveries, the current position equaled a 5.7 years’ supply.
  • Amended our existing $125 million senior secured revolving credit agreement extending the maturity date to June 30, 2024, subject to the satisfaction of customary conditions in respect of the collateral securing the borrowings under the revolving credit facility. The revolving credit facility was undrawn as of July 31, 2022.

FINANCIAL GUIDANCE(2):

The Company is increasing its gross margin, EBITDA and pretax profit guidance 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, material increase in mortgage rates, 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 $48.51 at July 29, 2022.

  • 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 24.0% and 26.0%, adjusted pretax income is expected to be between $310 million and $325 million, adjusted EBITDA is expected to be between $460 million and $475 million and fully diluted earnings per share is expected to be between $32.00 and $33.50. At the midpoint of our guidance, we anticipate our shareholders’ equity to increase year-over-year by approximately 120% at October 31, 2022.
  • Continue to focus on strengthening our balance sheet and anticipate reducing senior secured notes by an additional $100 million during the fourth quarter of 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:

“We are pleased that our third quarter adjusted pretax income exceeded our guidance, that Standard and Poor’s recognized our improved balance sheet and financial performance by upgrading our credit rating and that we are raising our full 2022 year guidance,” stated Ara K. Hovnanian, Chairman of the Board, President and Chief Executive Officer. “Beginning in May of 2022 home demand slowed and continued to slow further through the summer months. We believe this striking shift in homebuyers’ sentiment is due to the sharp rise in mortgage rates since January, year-over-year home price increases, record high inflation levels and fears of an economic recession. In response, to assist our homebuyers in lowering their monthly payments, we began offering concessions and incentives, including buying down mortgage interest rates; however, there has been little downward movement in base home prices for us or our competitors.”

“We are encouraged that website visits and leads have improved in recent weeks and remain above pre-Covid homebuying surge levels. This clearly demonstrates potential homebuyers continue to have strong interest in purchasing a new home. However, we believe consumers have temporarily paused finalizing their home buying decisions until uncertainty surrounding current economic and market conditions dissipates. While it is difficult to predict how long these factors will cause some homebuyers to delay their purchase decision, we remain confident that rising rents, combined with low supply of homes for sale will ultimately drive increased demand for new homes,” concluded Mr. Hovnanian.

WEBCAST INFORMATION:

Hovnanian Enterprises will webcast its fiscal 2022 third quarter financial results conference call at 11:00 a.m. E.T. on Thursday, September 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 and loss on extinguishment of debt (“Adjusted EBITDA”) are not U.S. generally accepted accounting principles (GAAP) financial measures. The most directly comparable GAAP financial measure is net income. 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 and loss on extinguishment of debt 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 pretax income to income before income taxes is presented in a table attached to this earnings release.

SG&A excluding the impact of incremental phantom stock expense is a non-GAAP financial measure. The most directly comparable GAAP financial measure is SG&A, to which SG&A excluding the impact of incremental phantom stock expense is reconciled herein.

Total liquidity is comprised of $225.1 million of cash and cash equivalents, $7.3 million of restricted cash required to collateralize letters of credit and $125.0 million availability under the senior secured revolving credit facility as of July 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 and statements regarding demand for homes 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) the outbreak and spread of COVID-19 and the measures that governments, agencies, law enforcement and/or health authorities implement to address it, as well as continuing macroeconomic effects of the pandemic; (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.
July 31, 2022
Statements of consolidated operations
(In thousands, except per share data)
        Three Months Ended   Nine Months Ended
        July 31   July 31
        2022   2021     2022     2021  
                             
Total revenues $ 767,593   $ 690,683     $ 2,035,443     $ 1,968,509  
Costs and expenses (1)   668,223     633,589       1,824,294       1,865,355  
Loss on extinguishment of debt       (306 )     (6,795 )     (306 )
Income from unconsolidated joint ventures   12,557     5,011       23,919       9,568  
Income before income taxes   111,927     61,799       228,273       112,416  
Income tax provision (benefit)   29,313     14,097       58,416       (442,921 )
Net income   82,614     47,702       169,857       555,337  
Less: preferred stock dividends   2,669           8,007        
Net income available to common stockholders $ 79,945   $ 47,702     $ 161,850     $ 555,337  
                             
                             
                             
Per share data:                      
Basic:                        
  Net income per common share $ 10.92   $ 6.85     $ 22.05     $ 80.02  
  Weighted average number of                      
    common shares outstanding   6,485     6,315       6,424       6,263  
Assuming dilution:                      
  Net income per common share $ 10.82   $ 6.72     $ 21.77     $ 78.51  
  Weighted average number of                      
    common shares outstanding   6,544     6,434       6,507       6,370  
                             
(1) Includes inventory impairment loss and land option write-offs.                      
                             
                             
Hovnanian Enterprises, Inc.
July 31, 2022
Reconciliation of income before income taxes excluding land-related charges and loss on extinguishment of debt to income before income taxes
(In thousands)
                             
        Three Months Ended   Nine Months Ended
        July 31   July 31
        2022   2021     2022     2021  
                             
Income before income taxes $ 111,927   $ 61,799     $ 228,273     $ 112,416  
Inventory impairment loss and land option write-offs   1,173     1,309       1,837       3,267  
Loss on extinguishment of debt       306       6,795       306  
Income before income taxes excluding land-related charges and loss on extinguishment of debt (1) $ 113,100   $ 63,414     $ 236,905     $ 115,989  
                             
(1) Income before income taxes excluding land-related charges and loss on extinguishment of debt is a non-GAAP financial measure. The most directly comparable GAAP financial measure is income before income taxes.

Hovnanian Enterprises, Inc.
July 31, 2022
Gross margin
(In thousands)
    Homebuilding Gross Margin   Homebuilding Gross Margin
    Three Months Ended   Nine Months Ended
    July 31,   July 31,
    2022     2021     2022     2021  
                         
Sale of homes   $ 736,654     $ 663,279     $ 1,973,843     $ 1,894,159  
Cost of sales, excluding interest expense and land charges (1)     543,064       516,530       1,474,403       1,488,919  
Homebuilding gross margin, before cost of sales interest expense and land charges (2)     193,590       146,749       499,440       405,240  
Cost of sales interest expense, excluding land sales interest expense     22,453       17,821       57,855       56,242  
Homebuilding gross margin, after cost of sales interest expense, before land charges (2)     171,137       128,928       441,585       348,998  
Land charges     1,173       1,309       1,837       3,267  
Homebuilding gross margin   $ 169,964     $ 127,619     $ 439,748     $ 345,731  
                         
Homebuilding Gross margin percentage     23.1%       19.2%       22.3%       18.3%  
Homebuilding Gross margin percentage, before cost of sales interest expense and land charges (2)     26.3%       22.1%       25.3%       21.4%  
Homebuilding Gross margin percentage, after cost of sales interest expense, before land charges (2)     23.2%       19.4%       22.4%       18.4%  
 
    Land Sales Gross Margin   Land Sales Gross Margin
    Three Months Ended   Nine Months Ended
    July 31,   July 31,
    2022     2021     2022     2021  
    (Unaudited)   (Unaudited)
Land and lot sales   $ 15,788     $ 6,819     $ 16,187     $ 11,730  
Land and lot sales cost of sales, excluding interest and land charges (1)     5,512       5,338       5,772       9,121  
Land and lot sales gross margin, excluding interest and land charges     10,276       1,481       10,415       2,609  
Land and lot sales interest           1,419       21       1,888  
Land and lot sales gross margin, including interest and excluding land charges   $ 10,276     $ 62     $ 10,394     $ 721  
                         
                         
(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.
July 31, 2022
Reconciliation of adjusted EBITDA to net income
(In thousands)
  Three Months Ended   Nine Months Ended
  July 31,   July 31,
  2022   2021   2022   2021  
  (Unaudited)   (Unaudited)
Net income $ 82,614   $ 47,702   $ 169,857   $ 555,337  
Income tax provision (benefit)   29,313     14,097     58,416     (442,921 )
Interest expense   32,077     38,398     93,318     123,296  
EBIT (1)   144,004     100,197     321,591     235,712  
Depreciation and amortization   1,520     1,269     4,009     4,091  
EBITDA (2)   145,524     101,466     325,600     239,803  
Inventory impairment loss and land option write-offs   1,173     1,309     1,837     3,267  
Loss on extinguishment of debt       306     6,795     306  
Adjusted EBITDA (3) $ 146,697   $ 103,081   $ 334,232   $ 243,376  
                       
Interest incurred $ 32,644   $ 39,181   $ 99,299   $ 122,508  
                       
Adjusted EBITDA to interest incurred   4.49     2.63     3.37     1.99  
                       
                       
                       
(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 impairment loss and land option write-offs and loss on extinguishment of debt.
                       
                       
Hovnanian Enterprises, Inc.
July 31, 2022
Interest incurred, expensed and capitalized
(In thousands)
  Three Months Ended   Nine Months Ended
  July 31,   July 31,
  2022   2021   2022   2021  
  (Unaudited)   (Unaudited)
Interest capitalized at beginning of period $ 63,573   $ 59,772   $ 58,159   $ 65,010  
Plus interest incurred   32,644     39,181     99,299     122,508  
Less interest expensed   32,077     38,398     93,318     123,296  
Less interest contributed to unconsolidated joint venture (1)               3,667  
Plus interest acquired from unconsolidated joint venture (2)       3,118         3,118  
Interest capitalized at end of period (3) $ 64,140   $ 63,673   $ 64,140   $ 63,673  
                       
(1) Represents capitalized interest which was included as part of the assets contributed to the joint venture the company entered into in April 2021 during the nine months ended July 31, 2021. There was no impact to the Condensed Consolidated Statement of Operations as a result of this transaction.
(2) Represents capitalized interest which was included as part of the assets purchased from a joint venture the company exited out of in June 2021 during the nine months ended July 31, 2021. 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. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)

    July 31,     October 31,  
    2022     2021  
    (Unaudited)     (1)  
ASSETS                
Homebuilding:                
Cash and cash equivalents   $ 225,089     $ 245,970    
Restricted cash and cash equivalents     15,505       16,089    
Inventories:                
Sold and unsold homes and lots under development     1,130,304       1,019,541    
Land and land options held for future development or sale     174,067       135,992    
Consolidated inventory not owned     280,910       98,727    
Total inventories     1,585,281       1,254,260    
Investments in and advances to unconsolidated joint ventures     74,739       60,897    
Receivables, deposits and notes, net     45,011       39,934    
Property, plant and equipment, net     23,312       18,736    
Prepaid expenses and other assets     64,346       56,186    
Total homebuilding     2,033,283       1,692,072    
                 
Financial services     127,651       202,758    
                 
Deferred tax assets, net     376,570       425,678    
Total assets   $ 2,537,504     $ 2,320,508    
                 
LIABILITIES AND EQUITY                
Homebuilding:                
Nonrecourse mortgages secured by inventory, net of debt issuance costs   $ 187,754     $ 125,089    
Accounts payable and other liabilities     424,508       426,381    
Customers’ deposits     99,521       68,295    
Liabilities from inventory not owned, net of debt issuance costs     178,454       62,762    
Senior notes and credit facilities (net of discounts, premiums and debt issuance costs)     1,147,872       1,248,373    
Accrued Interest     47,562       28,154    
Total homebuilding     2,085,671       1,959,054    
                 
Financial services     108,616       182,219    
Income taxes payable     4,470       3,851    
Total liabilities     2,198,757       2,145,124    
                 
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 July 31, 2022 and October 31, 2021     135,299       135,299    
Common stock, Class A, $0.01 par value – authorized 16,000,000 shares; issued 6,159,484 shares at July 31, 2022 and 6,066,164 shares at October 31, 2021     62       61    
Common stock, Class B, $0.01 par value (convertible to Class A at time of sale) – authorized 2,400,000 shares; issued 733,395 shares at July 31, 2022 and 686,876 shares at October 31, 2021     7       7    
Paid in capital – common stock     723,797       722,118    
Accumulated deficit     (405,378 )     (567,228 )  
Treasury stock – at cost – 470,430 shares of Class A common stock and 27,669 shares of Class B common stock at July 31, 2022 and October 31, 2021     (115,360 )     (115,360 )  
Total Hovnanian Enterprises, Inc. stockholders’ equity     338,427       174,897    
Noncontrolling interest in consolidated joint ventures     320       487    
Total equity     338,747       175,384    
Total liabilities and equity   $ 2,537,504     $ 2,320,508    

(1) Derived from the audited balance sheet as of October 31, 2021

HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Per Share Data)
(Unaudited)

    Three Months Ended July 31,     Nine Months Ended July 31,  
    2022     2021     2022     2021  
Revenues:                                
Homebuilding:                                
Sale of homes   $ 736,654     $ 663,279     $ 1,973,843     $ 1,894,159  
Land sales and other revenues     16,406       7,559       18,052       13,280  
Total homebuilding     753,060       670,838       1,991,895       1,907,439  
Financial services     14,533       19,845       43,548       61,070  
Total revenues     767,593       690,683       2,035,443       1,968,509  
                                 
Expenses:                                
Homebuilding:                                
Cost of sales, excluding interest     548,576       521,868       1,480,175       1,498,040  
Cost of sales interest     22,453       19,240       57,876       58,130  
Inventory impairment loss and land option write-offs     1,173       1,309       1,837       3,267  
Total cost of sales     572,202       542,417       1,539,888       1,559,437  
Selling, general and administrative     50,163       42,988       139,410       125,417  
Total homebuilding expenses     622,365       585,405       1,679,298       1,684,854  
                                 
Financial services     10,790       11,238       31,982       32,953  
Corporate general and administrative     24,774       17,284       75,893       81,149  
Other interest     9,624       19,158       35,442       65,166  
Other operations     670       504       1,679       1,233  
Total expenses     668,223       633,589       1,824,294       1,865,355  
Loss on extinguishment of debt           (306 )     (6,795 )     (306 )
Income from unconsolidated joint ventures     12,557       5,011       23,919       9,568  
Income before income taxes     111,927       61,799       228,273       112,416  
State and federal income tax provision (benefit):                                
State     6,385       1,476       11,515       (89,272 )
Federal     22,928       12,621       46,901       (353,649 )
Total income taxes     29,313       14,097       58,416       (442,921 )
Net income     82,614       47,702       169,857       555,337  
Less: preferred stock dividends     2,669             8,007        
Net income available to common stockholders   $ 79,945     $ 47,702     $ 161,850     $ 555,337  
                                 
Per share data:                                
Basic:                                
Net income per common share   $ 10.92     $ 6.85     $ 22.05     $ 80.02  
Weighted-average number of common shares outstanding     6,485       6,315       6,424       6,263  
Assuming dilution:                                
Net income per common share   $ 10.82     $ 6.72     $ 21.77     $ 78.51  
Weighted-average number of common shares outstanding     6,544       6,434       6,507       6,370  

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
    July 31, July 31, July 31,
    2022 2021 % Change 2022 2021 % Change 2022 2021 % Change
Northeast                                
(NJ, PA) Home   66   62 6.5%     78   44 77.3%     237   160 48.1%  
  Dollars $ 47,109 $ 52,066 (9.5)%   $ 60,266 $ 35,255 70.9%   $ 184,366 $ 122,638 50.3%  
  Avg. Price $ 713,773 $ 839,774 (15.0)%   $ 772,641 $ 801,250 (3.6)%   $ 777,916 $ 766,488 1.5%  
Mid-Atlantic                                
(DE, MD, VA, WV) Home   139   176 (21.0)%     251   189 32.8%     506   572 (11.5)%  
  Dollars $ 91,100 $ 117,341 (22.4)%   $ 168,076 $ 106,195 58.3%   $ 330,960 $ 361,329 (8.4)%  
  Avg. Price $ 655,396 $ 666,710 (1.7)%   $ 669,625 $ 561,878 19.2%   $ 654,071 $ 631,694 3.5%  
Midwest                                
(IL, OH) Home   60   165 (63.6)%     166   190 (12.6)%     493   648 (23.9)%  
  Dollars $ 29,999 $ 56,848 (47.2)%   $ 61,375 $ 60,588 1.3%   $ 166,291 $ 205,101 (18.9)%  
  Avg. Price $ 499,983 $ 344,533 45.1%   $ 369,729 $ 318,884 15.9%   $ 337,304 $ 316,514 6.6%  
Southeast                                
(FL, GA, SC) Home   114   124 (8.1)%     148   139 6.5%     574   440 30.5%  
  Dollars $ 67,402 $ 58,522 15.2%   $ 71,484 $ 61,978 15.3%   $ 348,019 $ 211,859 64.3%  
  Avg. Price $ 591,246 $ 471,952 25.3%   $ 483,000 $ 445,885 8.3%   $ 606,305 $ 481,498 25.9%  
Southwest                                
(AZ, TX) Home   336   469 (28.4)%     590   593 (0.5)%     966   1,292 (25.2)%  
  Dollars $ 179,005 $ 196,481 (8.9)%   $ 266,107 $ 212,773 25.1%   $ 510,681 $ 524,029 (2.5)%  
  Avg. Price $ 532,753 $ 418,936 27.2%   $ 451,029 $ 358,808 25.7%   $ 528,655 $ 405,595 30.3%  
West                                
(CA) Home   84   215 (60.9)%     179   343 (47.8)%     407   561 (27.5)%  
  Dollars $ 53,324 $ 127,872 (58.3)%   $ 109,346 $ 186,490 (41.4)%   $ 251,293 $ 325,472 (22.8)%  
  Avg. Price $ 634,810 $ 594,753 6.7%   $ 610,872 $ 543,703 12.4%   $ 617,428 $ 580,164 6.4%  
Consolidated Total                                
  Home   799   1,211 (34.0)%     1,412   1,498 (5.7)%     3,183   3,673 (13.3)%  
  Dollars $ 467,939 $ 609,130 (23.2)%   $ 736,654 $ 663,279 11.1%   $ 1,791,610 $ 1,750,428 2.4%  
  Avg. Price $ 585,656 $ 502,998 16.4%   $ 521,710 $ 442,776 17.8%   $ 562,868 $ 476,566 18.1%  
Unconsolidated Joint Ventures (2)                                
(excluding KSA JV) Home   115   165 (30.3)%     121   179 (32.4)%     390   399 (2.3)%  
  Dollars $ 81,604 $ 107,111 (23.8)%   $ 78,390 $ 102,262 (23.3)%   $ 281,220 $ 241,346 16.5%  
  Avg. Price $ 709,600 $ 649,158 9.3%   $ 647,851 $ 571,296 13.4%   $ 721,077 $ 604,877 19.2%  
Grand Total                                
  Home   914   1,376 (33.6)%     1,533   1,677 (8.6)%     3,573   4,072 (12.3)%  
  Dollars $ 549,543 $ 716,241 (23.3)%   $ 815,044 $ 765,541 6.5%   $ 2,072,830 $ 1,991,774 4.1%  
  Avg. Price $ 601,251 $ 520,524 15.5%   $ 531,666 $ 456,494 16.5%   $ 580,137 $ 489,139 18.6%  
                                 
KSA JV Only                                
  Home   18   215 (91.6)%     0   0 0.0%     2,209   1,666 32.6%  
  Dollars $ 2,788 $ 33,802 (91.8)%   $ 0 $ 0 0.0%   $ 346,814 $ 261,653 32.5%  
  Avg. Price $ 154,889 $ 157,219 (1.5)%   $ 0 $ 0 0.0%   $ 157,000 $ 157,055 (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 EXCLUDES UNCONSOLIDATED JOINT VENTURES)                    
                                 
    Contracts (1) Deliveries Contract
    Nine Months Ended Nine Months Ended Backlog
    July 31, July 31, July 31,
    2022 2021 % Change 2022 2021 % Change 2022 2021 % Change
Northeast                                
(NJ, PA) Home   249   169 47.3%     184   139 32.4%     237   160 48.1%  
  Dollars $ 181,641 $ 135,684 33.9%   $ 135,671 $ 95,157 42.6%   $ 184,366 $ 122,638 50.3%  
  Avg. Price $ 729,482 $ 802,864 (9.1)%   $ 737,342 $ 684,583 7.7%   $ 777,916 $ 766,488 1.5%  
Mid-Atlantic                                
(DE, MD, VA, WV) Home   608   647 (6.0)%     610   581 5.0%     506   572 (11.5)%  
  Dollars $ 384,950 $ 414,059 (7.0)%   $ 396,180 $ 311,230 27.3%   $ 330,960 $ 361,329 (8.4)%  
  Avg. Price $ 633,141 $ 639,968 (1.1)%   $ 649,475 $ 535,680 21.2%   $ 654,071 $ 631,694 3.5%  
Midwest                                
(IL, OH) Home   371   628 (40.9)%     483   576 (16.1)%     493   648 (23.9)%  
  Dollars $ 144,833 $ 216,775 (33.2)%   $ 172,987 $ 181,191 (4.5)%   $ 166,291 $ 205,101 (18.9)%  
  Avg. Price $ 390,385 $ 345,183 13.1%   $ 358,151 $ 314,568 13.9%   $ 337,304 $ 316,514 6.6%  
Southeast                                
(FL, GA, SC) Home   555   487 14.0%     402   408 (1.5)%     574   440 30.5%  
  Dollars $ 326,727 $ 223,201 46.4%   $ 200,133 $ 188,489 6.2%   $ 348,019 $ 211,859 64.3%  
  Avg. Price $ 588,697 $ 458,318 28.4%   $ 497,843 $ 461,983 7.8%   $ 606,305 $ 481,498 25.9%  
Southwest                                
(AZ, TX) Home   1,533   2,034 (24.6)%     1,643   1,808 (9.1)%     966   1,292 (25.2)%  
  Dollars $ 742,953 $ 783,924 (5.2)%   $ 692,093 $ 620,120 11.6%   $ 510,681 $ 524,029 (2.5)%  
  Avg. Price $ 484,640 $ 385,410 25.7%   $ 421,237 $ 342,987 22.8%   $ 528,655 $ 405,595 30.3%  
West                                
(CA) Home   559   795 (29.7)%     617   989 (37.6)%     407   561 (27.5)%  
  Dollars $ 345,642 $ 453,557 (23.8)%   $ 376,779 $ 497,972 (24.3)%   $ 251,293 $ 325,472 (22.8)%  
  Avg. Price $ 618,322 $ 570,512 8.4%   $ 610,663 $ 503,511 21.3%   $ 617,428 $ 580,164 6.4%  
Consolidated Total                                
  Home   3,875   4,760 (18.6)%     3,939   4,501 (12.5)%     3,183   3,673 (13.3)%  
  Dollars $ 2,126,746 $ 2,227,200 (4.5)%   $ 1,973,843 $ 1,894,159 4.2%   $ 1,791,610 $ 1,750,428 2.4%  
  Avg. Price $ 548,838 $ 467,899 17.3%   $ 501,103 $ 420,831 19.1%   $ 562,868 $ 476,566 18.1%  
Unconsolidated Joint Ventures (2)                                
(excluding KSA JV) Home   387   538 (28.1)%     372   453 (17.9)%     390   399 (2.3)%  
  Dollars $ 268,585 $ 318,824 (15.8)%   $ 228,984 $ 264,442 (13.4)%   $ 281,220 $ 241,346 16.5%  
  Avg. Price $ 694,018 $ 592,610 17.1%   $ 615,548 $ 583,757 5.4%   $ 721,077 $ 604,877 19.2%  
Grand Total                                
  Home   4,262   5,298 (19.6)%     4,311   4,954 (13.0)%     3,573   4,072 (12.3)%  
  Dollars $ 2,395,331 $ 2,546,024 (5.9)%   $ 2,202,827 $ 2,158,601 2.0%   $ 2,072,830 $ 1,991,774 4.1%  
  Avg. Price $ 562,020 $ 480,563 17.0%   $ 510,978 $ 435,729 17.3%   $ 580,137 $ 489,139 18.6%  
                                 
KSA JV Only                                
  Home   296   574 (48.4)%     0   0 0.0%     2,209   1,666 32.6%  
  Dollars $ 46,430 $ 89,980 (48.4)%   $ 0 $ 0 0.0%   $ 346,814 $ 261,653 32.5%  
  Avg. Price $ 156,858 $ 156,760 0.1%   $ 0 $ 0 0.0%   $ 157,000 $ 157,055 (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)                      
                                 
    Contracts (1) Deliveries Contract
    Three Months Ended Three Months Ended Backlog
    July 31, July 31, July 31,
    2022 2021   % Change 2022 2021 % Change 2022 2021 % Change
Northeast                                
(unconsolidated joint ventures) Home   14   10   40.0%     0   16 (100.0)%     52   8 550.0%  
(excluding KSA JV) Dollars $ 11,842 $ 14,506   (18.4)%   $ 0 $ 21,845 (100.0)%   $ 44,075 $ 10,500 319.8%  
(NJ, PA) Avg. Price $ 845,857 $ 1,450,600   (41.7)%   $ 0 $ 1,365,313 (100.0)%   $ 847,596 $ 1,312,500 (35.4)%  
Mid-Atlantic                                
(unconsolidated joint ventures) Home   42   41   2.4%     51   45 13.3%     134   123 8.9%  
(DE, MD, VA, WV) Dollars $ 29,519 $ 26,890   9.8%   $ 33,457 $ 24,726 35.3%   $ 89,955 $ 77,565 16.0%  
  Avg. Price $ 702,833 $ 655,854   7.2%   $ 656,020 $ 549,467 19.4%   $ 671,306 $ 630,610 6.5%  
Midwest                                
(unconsolidated joint ventures) Home   0   0   0.0%     0   0 0.0%     0   0 0.0%  
(IL, OH) Dollars $ 0 $ 0   0.0%   $ 0 $ 0 0.0%   $ 0 $ 0 0.0%  
  Avg. Price $ 0 $ 0   0.0%   $ 0 $ 0 0.0%   $ 0 $ 0 0.0%  
Southeast                                
(unconsolidated joint ventures) Home   42   92   (54.3)%     49   70 (30.0)%     165   231 (28.6)%  
(FL, GA, SC) Dollars $ 30,481 $ 55,830   (45.4)%   $ 33,860 $ 32,842 3.1%   $ 126,714 $ 137,907 (8.1)%  
  Avg. Price $ 725,738 $ 606,848   19.6%   $ 691,020 $ 469,171 47.3%   $ 767,964 $ 597,000 28.6%  
Southwest                                
(unconsolidated joint ventures) Home   0   0   0.0%     0   21 (100.0)%     0   0 0.0%  
(AZ, TX) Dollars $ 0 $ (8)   (100.0)%   $ 0 $ 12,750 (100.0)%   $ 0 $ 0 0.0%  
  Avg. Price $ 0 $ 0   0.0%   $ 0 $ 607,143 (100.0)%   $ 0 $ 0 0.0%  
West                                
(unconsolidated joint ventures) Home   17   22   (22.7)%     21   27 (22.2)%     39   37 5.4%  
(CA) Dollars $ 9,763 $ 9,893   (1.3)%   $ 11,073 $ 10,099 9.6%   $ 20,477 $ 15,374 33.2%  
  Avg. Price $ 574,294 $ 449,682   27.7%   $ 527,286 $ 374,037 41.0%   $ 525,051 $ 415,514 26.4%  
Unconsolidated Joint Ventures (2)                                
(excluding KSA JV) Home   115   165   (30.3)%     121   179 (32.4)%     390   399 (2.3)%  
  Dollars $ 81,605 $ 107,111   (23.8)%   $ 78,390 $ 102,262 (23.3)%   $ 281,221 $ 241,346 16.5%  
  Avg. Price $ 709,609 $ 649,158   9.3%   $ 647,851 $ 571,296 13.4%   $ 721,079 $ 604,877 19.2%  
                                 
KSA JV Only                                
  Home   18   215   (91.6)%     0   0 0.0%     2,209   1,666 32.6%  
  Dollars $ 2,788 $ 33,802   (91.8)%   $ 0 $ 0 0.0%   $ 346,814 $ 261,653 32.5%  
  Avg. Price $ 154,889 $ 157,219   (1.5)%   $ 0 $ 0 0.0%   $ 157,000 $ 157,055 (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)                      
                                 
    Contracts (1) Deliveries Contract
    Nine Months Ended Nine Months Ended Backlog
    July 31, July 31, July 31,
    2022 2021 % Change 2022 2021 % Change 2022 2021 % Change
Northeast                                
(unconsolidated joint ventures) Home   46   37 24.3%     4   47 (91.5)%     52   8 550.0%  
(excluding KSA JV) Dollars $ 39,580 $ 49,318 (19.7)%   $ 5,695 $ 63,353 (91.0)%   $ 44,075 $ 10,500 319.8%  
(NJ, PA) Avg. Price $ 860,435 $ 1,332,919 (35.4)%   $ 1,423,750 $ 1,347,936 5.6%   $ 847,596 $ 1,312,500 (35.4)%  
Mid-Atlantic                                
(unconsolidated joint ventures) Home   142   90 57.8%     124   108 14.8%     134   123 8.9%  
(DE, MD, VA, WV) Dollars $ 95,483 $ 55,178 73.0%   $ 82,136 $ 57,050 44.0%   $ 89,955 $ 77,565 16.0%  
  Avg. Price $ 672,415 $ 613,089 9.7%   $ 662,387 $ 528,241 25.4%   $ 671,306 $ 630,610 6.5%  
Midwest                                
(unconsolidated joint ventures) Home   0   1 (100.0)%     0   1 (100.0)%     0   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   129   336 (61.6)%     175   191 (8.4)%     165   231 (28.6)%  
(FL, GA, SC) Dollars $ 97,107 $ 182,950 (46.9)%   $ 108,164 $ 93,394 15.8%   $ 126,714 $ 137,907 (8.1)%  
  Avg. Price $ 752,767 $ 544,494 38.3%   $ 618,080 $ 488,974 26.4%   $ 767,964 $ 597,000 28.6%  
Southwest                                
(unconsolidated joint ventures) Home   0   4 (100.0)%     0   50 (100.0)%     0   0 0.0%  
(AZ, TX) Dollars $ 0 $ 3,127 (100.0)%   $ 0 $ 29,930 (100.0)%   $ 0 $ 0 0.0%  
  Avg. Price $ 0 $ 781,750 (100.0)%   $ 0 $ 598,600 (100.0)%   $ 0 $ 0 0.0%  
West                                
(unconsolidated joint ventures) Home   70   70 0.0%     69   56 23.2%     39   37 5.4%  
(CA) Dollars $ 36,416 $ 27,842 30.8%   $ 32,989 $ 20,306 62.5%   $ 20,477 $ 15,374 33.2%  
  Avg. Price $ 520,229 $ 397,743 30.8%   $ 478,101 $ 362,607 31.9%   $ 525,051 $ 415,514 26.4%  
Unconsolidated Joint Ventures (2)                                
(excluding KSA JV) Home   387   538 (28.1)%     372   453 (17.9)%     390   399 (2.3)%  
  Dollars $ 268,586 $ 318,824 (15.8)%   $ 228,984 $ 264,442 (13.4)%   $ 281,221 $ 241,346 16.5%  
  Avg. Price $ 694,021 $ 592,610 17.1%   $ 615,548 $ 583,757 5.4%   $ 721,079 $ 604,877 19.2%  
                                 
KSA JV Only                                
  Home   296   574 (48.4)%     0   0 0.0%     2,209   1,666 32.6%  
  Dollars $ 46,430 $ 89,980 (48.4)%   $ 0 $ 0 0.0%   $ 346,814 $ 261,653 32.5%  
  Avg. Price $ 156,858 $ 156,760 0.1%   $ 0 $ 0 0.0%   $ 157,000 $ 157,055 (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 Jeffrey T. O’Keefe
  Executive Vice President & CFO Vice President, Investor Relations
  732-747-7800 732-747-7800
     

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