HOV
$2.25
Hovnanian Enterprises
$.09
4.17%
Earnings Details
4th Quarter October 2016
Thursday, December 08, 2016 9:15:21 AM
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Summary

Hovnanian Enterprises Beats

Hovnanian Enterprises (HOV) reported 4th Quarter October 2016 earnings of $0.20 per share on revenue of $805.1 million. The consensus earnings estimate was $0.15 per share on revenue of $892.7 million. The Earnings Whisper number was $0.14 per share. Revenue grew 16.1% on a year-over-year basis.

Hovnanian Enterprises Inc designs, constructs, markets and sells single-family detached homes, attached townhomes and condominiums, urban infill and active adult homes in planned residential developments.

Results
Reported Earnings
$0.20
Earnings Whisper
$0.14
Consensus Estimate
$0.15
Reported Revenue
$805.1 Mil
Revenue Estimate
$892.7 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Hovnanian Enterprises Reports Fiscal 2016 Results

Reports 28% Growth in Total Revenues for All of Fiscal 2016

Reports Pretax Income for Fourth Quarter and Full Year

Hovnanian Enterprises, Inc. (HOV), a leading national homebuilder, reported results for its fiscal fourth quarter and year ended October 31, 2016.

<span style="text-decoration: underline;" data-mce-style="text-decoration: underline;">RESULTS FOR THE THREE AND TWELVE MONTH PERIODS ENDED OCTOBER 31, 2016:</span>

Total revenues were $805.1 million in the fourth quarter of fiscal 2016, an increase of 16.1% compared with $693.2 million in the fourth quarter of fiscal 2015. For the year ended October 31, 2016, total revenues increased 28.1% to $2.75 billion compared with $2.15 billion in the prior year.

Total SG&A was $53.7 million, or 6.7% of total revenues, during the fourth quarter of fiscal 2016 compared with $49.4 million, or 7.1% of total revenues, in last year’s fourth quarter. Total SG&A was $253.1 million, or 9.2% of total revenues, for all of fiscal 2016 compared with $250.9 million, or 11.7% of total revenues, in the prior fiscal year.

Total interest expense as a percentage of total revenues was 6.0% during the fourth quarter of fiscal 2016 compared with 5.9% for the fourth quarter of fiscal 2015. For the twelve months ended October 31, 2016, total interest expense as a percentage of total revenues declined 30 basis points to 6.7% compared with 7.0% during the same period a year ago.

Homebuilding gross margin percentage, before interest expense and land charges included in cost of sales, was 17.6% for the fourth quarter ended October 31, 2016 compared with 18.0% for the fourth quarter of fiscal 2015. During all of fiscal 2016, homebuilding gross margin percentage, before interest expense and land charges included in cost of sales, was 16.9% compared with 17.6% in the same period of the previous year.

Income before income taxes in the fourth quarter of fiscal 2016 was $32.1 million compared with $37.4 million in the prior year’s fourth quarter. For all twelve months of fiscal 2016, income before income taxes was $2.4 million compared with a loss before income taxes of $21.8 million during all of fiscal 2015.

Income before income taxes, excluding land-related charges and loss on extinguishment of debt, in the fourth quarter of fiscal 2016 was $45.8 million compared with $41.8 million in the prior year’s fourth quarter. For fiscal 2016, income before income taxes, excluding land-related charges and loss on extinguishment of debt, was $39.0 million compared with a loss before income taxes, excluding land-related charges, of $9.7 million during fiscal 2015.

Net income was $22.3 million, or $0.14 per common share, for the fourth quarter of fiscal 2016, compared with $25.5 million, or $0.17 per common share, in the fourth quarter of the previous year. For the fiscal year ended October 31, 2016, the net loss was $2.8 million, or $0.02 per common share, compared with a net loss of $16.1 million, or $0.11 per common share, in all of fiscal 2015.

For the fourth quarter of fiscal 2016, Adjusted EBITDA increased 13.6% to $96.4 million compared with $84.9 million during the fourth quarter of 2015. For all of fiscal 2016, Adjusted EBITDA increased 53.5% to $231.2 million compared with $150.6 million during all of fiscal 2015.

Adjusted EBITDA to interest incurred was 2.39x for fourth quarter of fiscal 2016 compared with 2.01x for the same quarter last year. For the twelve-month period ended October 31, 2016, Adjusted EBITDA to interest incurred was 1.39x compared with 0.91x for the same period one year ago.

Consolidated net contracts per active selling community increased 11.4% to 7.8 net contracts per active selling community for the fourth quarter of fiscal 2016 compared with 7.0 net contracts per active selling community in the fourth quarter of fiscal 2015. Net contracts per active selling community, including unconsolidated joint ventures, increased 4.2% to 7.4 net contracts per active selling community for the quarter ended October 31, 2016 compared with 7.1 net contracts, including unconsolidated joint ventures, per active selling community in the fourth quarter of fiscal 2015.

Consolidated active selling communities decreased 23.7% from 219 communities at the end of the prior year’s fourth quarter to 167 communities as of October 31, 2016, which was impacted by the sale of ten communities in Minneapolis and Raleigh and the conversion of four consolidated communities into unconsolidated joint venture communities. As of the end of the fourth quarter of fiscal 2016, active selling communities, including unconsolidated joint ventures, decreased 17.9% to 188 communities compared with 229 communities at October 31, 2015.

The dollar value of consolidated net contracts decreased 14.5% to $534.3 million for the three months ended October 31, 2016 compared with $624.9 million during the same quarter a year ago. The dollar value of net contracts, including unconsolidated joint ventures, during the fourth quarter of fiscal 2016 decreased 14.9% to $582.7 million compared with $684.3 million in last year’s fourth quarter.

The dollar value of consolidated net contracts increased 2.6% to $2.51 billion for all of fiscal 2016 compared with $2.45 billion in the previous fiscal year. The dollar value of net contracts, including unconsolidated joint ventures, for the twelve months ended October 31, 2016 increased 0.9% to $2.67 billion compared with $2.65 billion in fiscal 2015.

The number of consolidated net contracts, during the fourth quarter of fiscal 2016, decreased 15.4% to 1,299 homes compared with 1,535 homes in the prior year’s fourth quarter. In the fourth quarter of fiscal 2016, the number of net contracts, including unconsolidated joint ventures, decreased 14.7% to 1,389 homes from 1,629 homes during the fourth quarter of fiscal 2015.

The number of consolidated net contracts, during the twelve-month period ended October 31, 2016, decreased 1.2% to 6,109 homes compared with 6,183 homes in the same period of the previous year. During all of fiscal 2016, the number of net contracts, including unconsolidated joint ventures, was 6,380 homes, a decrease of 2.6% from 6,547 homes during fiscal 2015.

As of October 31, 2016, the dollar value of contract backlog, including unconsolidated joint ventures, was $1.22 billion, a decrease of 9.4% compared with $1.35 billion as of October 31, 2015. The dollar value of consolidated contract backlog, as of October 31, 2016, decreased 12.1% to $1.07 billion compared with $1.22 billion as of October 31, 2015.

As of October 31, 2016, the number of homes in contract backlog, including unconsolidated joint ventures, decreased 14.9% to 2,649 homes compared with 3,112 homes as of October 31, 2015. The number of homes in consolidated contract backlog, as of October 31, 2016, decreased 17.5% to 2,398 homes compared with 2,905 homes as of the end of the fourth quarter of fiscal 2015.

Consolidated deliveries were 1,870 homes in the fourth quarter of fiscal 2016, an 8.3% increase compared with 1,727 homes in the fourth quarter of fiscal 2015. For the three months ended October 31, 2016, deliveries, including unconsolidated joint ventures, increased 10.0% to 1,972 homes compared with 1,792 homes in the fourth quarter of the prior year.

Consolidated deliveries were 6,464 homes for all of fiscal 2016, a 17.4% increase compared with 5,507 homes in the same period of fiscal 2015. For the twelve months ended October 31, 2016, deliveries, including unconsolidated joint ventures, increased 16.2% to 6,712 homes compared with 5,776 homes in the twelve months of the prior fiscal year.

The contract cancellation rate, including unconsolidated joint ventures, for the fourth quarter of fiscal 2016 was 21%, compared with 20% in the fourth quarter of fiscal 2015.

The valuation allowance was $627.9 million as of October 31, 2016. The valuation allowance is a non-cash reserve against the tax assets for GAAP purposes. For tax purposes, the tax deductions associated with the tax assets may be carried forward for 20 years from the date the deductions were incurred.

<span style="text-decoration: underline;" data-mce-style="text-decoration: underline;">LIQUIDITY AND INVENTORY AS OF OCTOBER 31,2016:</span>

After paying off $320.0 million of debt that matured in October 2015, January 2016 and May 2016, total liquidity at the end of the fourth quarter of fiscal 2016 was $346.6 million.

During the fourth quarter of fiscal 2016, land and land development spending was $131.4 million compared with $192.1 million in last year’s fourth quarter. For the year ended October 31, 2016, land and land development spending was $567.0 million compared to $656.5 million in the prior fiscal year.

As of October 31, 2016, the land position, including unconsolidated joint ventures, was 31,281 lots, consisting of 14,165 lots under option and 17,116 owned lots, compared with a total of 37,659 lots as of October 31, 2015.

During the fourth quarter of fiscal 2016, approximately 2,100 lots, including unconsolidated joint ventures, were put under option or acquired in 37 communities.

<span style="text-decoration: underline;" data-mce-style="text-decoration: underline;">COMMENTS FROM MANAGEMENT:</span>

"For fiscal 2016, we grew revenues by 28%, reduced our SG&A ratio by 250 basis points, paid off $260 million of public debt at maturity and returned to profitability. Nonetheless, fiscal 2016 was a very challenging year," stated Ara K. Hovnanian, Chairman of the Board, President and Chief Executive Officer. "The debt markets remained closed to companies with our credit ratings and we needed to raise funds to pay off $260 million of maturing public debt. This led to our decision to enhance our liquidity by increasing our use of land bank financings and joint ventures, as well as exiting four underperforming markets. This adversely affected our ability to invest as aggressively in new land parcels as previously planned. However, we ended the year with a liquidity position of $347 million, allowing us to once again actively seek land investment opportunities, which should ultimately result in community count growth and, assuming no change in market conditions, higher levels of profitability in the future," concluded Mr. Hovnanian.

<span style="text-decoration: underline;" data-mce-style="text-decoration: underline;">WEBCAST INFORMATION:</span>

Hovnanian Enterprises will webcast its fiscal 2016 fourth quarter financial results conference call at 11:00 a.m. E.T. on Thursday, December 8, 2016. 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.

<span style="text-decoration: underline;" data-mce-style="text-decoration: underline;">ABOUT HOVNANIAN ENTERPRISES</span><span style="text-decoration: underline;" data-mce-style="text-decoration: underline;">, INC.:</span>

Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, is headquartered in Red Bank, New Jersey. The Company 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 names K. Hovnanian Homes, Brighton Homes and Parkwood Builders. As the developer of K. Hovnanian’s Four Seasons communities, the Company is also one of the nation’s largest builders of active lifestyle communities.

Additional information on Hovnanian Enterprises, Inc., including a summary investment profile and the Company’s 2015 annual report, 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.

<span style="text-decoration: underline;" data-mce-style="text-decoration: underline;">NON-GAAP FINANCIAL MEASURES:</span>

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 (loss). The reconciliation for historical periods of EBIT, EBITDA and Adjusted EBITDA to net income (loss) is presented in a table attached to this earnings release.

Income (Loss) 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 (Loss) Before Income Taxes. The reconciliation for historical periods of Income (Loss) Before Income Taxes Excluding Land-Related Charges and Loss on Extinguishment of Debt to Income (Loss) Before Income Taxes is presented in a table attached to this earnings release.

Total liquidity is comprised of $339.8 million of cash and cash equivalents, $1.7 million of restricted cash required to collateralize letters of credit and $5.1 million of availability under the unsecured revolving credit facility as of October 31, 2016.

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 the sustained homebuilding downturn; (2) adverse weather and other environmental conditions and natural disasters; (3) levels of indebtedness and restrictions on the Company’s operations and activities imposed by the agreements governing the Company’s outstanding indebtedness; (4) the Company’s sources of liquidity; (5) changes in credit ratings; (6) changes in market conditions and seasonality of the Company’s business; (7) the availability and cost of suitable land and improved lots; (8) shortages in, and price fluctuations of, raw materials and labor; (9) regional and local economic factors, including dependency on certain sectors of the economy, and employment levels affecting home prices and sales activity in the markets where the Company builds homes; (10) 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) operations through joint ventures with third parties; (13) government regulation, including regulations concerning development of land, the home building, sales and customer financing processes, tax laws and the environment; (14) product liability litigation, warranty claims and claims made by mortgage investors; (15) levels of competition; (16) availability and terms of financing to the Company; (17) successful identification and integration of acquisitions; (18) significant influence of the Company’s controlling stockholders; (19) availability of net operating loss carryforwards; (20) utility shortages and outages or rate fluctuations; (21) geopolitical risks, terrorist acts and other acts of war; (22) increases in cancellations of agreements of sale; (23) loss of key management personnel or failure to attract qualified personnel; (24) information technology failures and data security breaches; (25) legal claims brought against us and not resolved in our favor; and (26) 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, 2015 and subsequent filings with the Securities and Exchange Commission. Except as otherwise required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.

(Financial Tables Follow)

Hovnanian Enterprises, Inc.
October 31, 2016
Statements of Consolidated Operations
(Dollars in Thousands, Except Per Share Data)
Three Months Ended
Twelve Months Ended
October 31,
October 31,
2016
2015
2016
2015
(Unaudited)
(Unaudited)
Total Revenues
$
805,069
$ 693,204
$
2,752,247
$ 2,148,480
Costs and Expenses (a)
770,609
657,506
2,742,265
2,174,414
Loss on Extinguishment of Debt
(3,200
)
-
(3,200
)
-
Income (Loss) from Unconsolidated Joint Ventures
881
1,699
(4,346
)
4,169
Income (Loss) Before Income Taxes
32,141
37,397
2,436
(21,765
)
Income Tax Provision (Benefit)
9,852
11,878
5,255
(5,665
)
Net Income (Loss)
$
22,289
$ 25,519
$
(2,819
)
$ (16,100
)
Per Share Data:
Basic:
Income (Loss) Per Common Share
$
0.14
$ 0.17
$
(0.02
)
$ (0.11
)
Weighted Average Number of Common Shares Outstanding (b)
147,521
147,057
147,451
146,899
Assuming Dilution:
Income (Loss) Per Common Share
$
0.14
$ 0.16
$
(0.02
)
$ (0.11
)
Weighted Average Number of Common Shares Outstanding (b)
160,590
160,299
147,451
146,899
(a)
Includes inventory impairment loss and land option write-offs.
(b)
For periods with a net loss, basic shares are used in accordance with GAAP rules.
Hovnanian Enterprises, Inc.
October 31, 2016
Reconciliation of Income (Loss) Before Income Taxes Excluding Land-Related Charges and Loss on Extinguishment of Debt to Income (Loss) Before Income Taxes
(Dollars in Thousands)
Three Months Ended
Twelve Months Ended
October 31,
October 31,
2016
2015
2016
2015
(Unaudited)
(Unaudited)
Income (Loss) Before Income Taxes
$
32,141
$ 37,397
$
2,436
$ (21,765
)
Inventory Impairment Loss and Land Option Write-Offs
10,438
4,426
33,353
12,044
Loss on Extinguishment of Debt
3,200
-
3,200
-
Income (Loss) Before Income Taxes Excluding Land-Related Charges and Loss on Extinguishment of Debt (a) $
45,779
$ 41,823
$
38,989
$ (9,721
)
(a) Income (Loss) 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 (Loss) Before Income Taxes.
Hovnanian Enterprises, Inc.
October 31, 2016
Gross Margin
(Dollars in Thousands)
Homebuilding Gross Margin
Homebuilding Gross Margin
Three Months Ended
Twelve Months Ended
October 31,
October 31,
2016
2015
2016
2015
(Unaudited)
(Unaudited)
Sale of Homes
$
777,472
$ 673,330
$
2,600,790
$ 2,088,129
Cost of Sales, Excluding Interest and Land Charges (a)
640,580
552,462
2,162,284
1,721,336
Homebuilding Gross Margin, Excluding Interest and Land Charges
136,892
120,868
438,506
366,793
Homebuilding Cost of Sales Interest
25,302
19,959
86,593
59,574
Homebuilding Gross Margin, Including Interest and Excluding Land Charges
$
111,590
$ 100,909
$
351,913
$ 307,219
Gross Margin Percentage, Excluding Interest and Land Charges
17.6
%
18.0
%
16.9
%
17.6
%
Gross Margin Percentage, Including Interest and Excluding Land Charges
14.4
%
15.0
%
13.5
%
14.7
%
Land Sales Gross Margin
Land Sales Gross Margin
Three Months Ended
Twelve Months Ended
October 31,
October 31,
2016
2015
2016
2015
(Unaudited)
(Unaudited)
Land and Lot Sales
$
5,990
$ -
$
76,041
$ 850
Cost of Sales, Excluding Interest and Land Charges (a)
5,898
-
68,173
702
Land and Lot Sales Gross Margin, Excluding Interest and Land Charges
92
-
7,868
148
Land and Lot Sales Interest
396
-
5,798
39
Land and Lot Sales Gross Margin, Including Interest and Excluding Land Charges $
(304
)
$ -
$
2,070
$ 109
(a) Does not include cost associated with walking away from land options or inventory impairment losses which are recorded as Inventory impairment loss and land option write-offs in the Consolidated Statements of Operations.
Hovnanian Enterprises, Inc.
October 31, 2016
Reconciliation of Adjusted EBITDA to Net Income (Loss)
(Dollars in Thousands)
Three Months Ended
Twelve Months Ended
October 31,
October 31,
2016
2015
2016
2015
(Unaudited)
(Unaudited)
Net Income (Loss)
$
22,289
$ 25,519
$
(2,819
)
$ (16,100
)
Income Tax Provision (Benefit)
9,852
11,878
5,255
(5,665
)
Interest Expense
48,197
41,200
183,358
151,448
EBIT (a)
80,338
78,597
185,794
129,683
Depreciation
957
835
3,565
3,388
Amortization of Debt Costs
1,446
1,008
5,261
5,459
EBITDA (b)
82,741
80,440
194,620
138,530
Inventory Impairment Loss and Land Option Write-offs
10,438
4,426
33,353
12,044
Loss on Extinguishment of Debt
3,200
-
3,200
-
Adjusted EBITDA (c)
$
96,379
$ 84,866
$
231,173
$ 150,574
Interest Incurred
$
40,341
$ 42,157
$
166,824
$ 166,188
Adjusted EBITDA to Interest Incurred
2.39
2.01
1.39
0.91
(a)
EBIT is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income (loss). EBIT represents earnings before interest expense and income taxes.
(b)
EBITDA is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income (loss). EBITDA represents earnings before interest expense, income taxes, depreciation and amortization.
(c)
Adjusted EBITDA is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income (loss). 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.
October 31, 2016
Interest Incurred, Expensed and Capitalized
(Dollars in Thousands)
Three Months Ended
Twelve Months Ended
October 31,
October 31,
2016
2015
2016
2015
(Unaudited)
(Unaudited)
Interest Capitalized at Beginning of Period
$
104,544
$ 122,941
$
123,898
$ 109,158
Plus Interest Incurred
40,341
42,157
166,824
166,188
Less Interest Expensed (a)
48,197
41,200
183,358
151,448
Less Interest Contributed to Unconsolidated Joint Venture (a)
-
-
10,676
-
Interest Capitalized at End of Period (b)
$
96,688
$ 123,898
$
96,688
$ 123,898
(a) Represents capitalized interest which was included as part of the assets contributed to the joint venture the Company entered into in November 2015. There was no impact to the Consolidated Statement of Operations as a result of this transaction.
(b) Capitalized interest amounts are shown gross before allocating any portion of impairments to capitalized interest.
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands)
October 31, 2016
October 31, 2015
(Unaudited)
(1
)
ASSETS
Homebuilding:
Cash and cash equivalents
$
339,773
$
245,398
Restricted cash and cash equivalents
3,914
7,299
Inventories:
Sold and unsold homes and lots under development
899,082
1,307,850
Land and land options held for future development or sale
175,301
214,503
Consolidated inventory not owned
208,701
122,225
Total inventories
1,283,084
1,644,578
Investments in and advances to unconsolidated joint ventures
100,502
61,209
Receivables, deposits and notes, net
49,726
70,349
Property, plant and equipment, net
50,332
45,534
Prepaid expenses and other assets
71,246
77,671
Total homebuilding
1,898,577
2,152,038
Financial services:
Cash and cash equivalents
6,992
8,347
Restricted cash and cash equivalents
19,034
19,223
Mortgage loans held for sale at fair value
165,083
130,320
Other assets
6,121
2,091
Total financial services
197,230
159,981
Income taxes receivable - including net deferred tax benefits
283,633
290,279
Total assets
$
2,379,440
$
2,602,298
(1) Derived from the audited balance sheet as of October 31, 2015
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share and Per Share Amounts)
October 31,
October 31,
2016
2015
(Unaudited)
(1
)
LIABILITIES AND EQUITY
Homebuilding:
Nonrecourse mortgages secured by inventory
$
83,470
$
143,863
Accounts payable and other liabilities
369,228
348,516
Customers’ deposits
37,429
44,218
Nonrecourse mortgages secured by operating properties
14,312
15,511
Liabilities from inventory not owned
153,151
105,856
Total homebuilding
657,590
657,964
Financial services:
Accounts payable and other liabilities
26,857
27,908
Mortgage warehouse lines of credit
145,588
108,875
Total financial services
172,445
136,783
Notes payable:
Revolving credit agreement
52,000
47,000
Senior secured term loan
75,000
-
Senior secured notes, net of discount
1,054,333
981,346
Senior notes, net of discount
400,000
780,319
Senior amortizing notes
6,316
12,811
Senior exchangeable notes
57,841
73,771
Accrued interest
32,425
40,388
Total notes payable
1,677,915
1,935,635
Total liabilities
2,507,950
2,730,382
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 October 31, 2016 and 2015
135,299
135,299
Common stock, Class A, $0.01 par value - authorized 400,000,000 shares; issued 143,806,775 shares at October 31, 2016 and 143,292,881 shares at October 31, 2015 (including 11,760,763 shares at October 31, 2016 and 2015 held in Treasury)
1,438
1,433
Common stock, Class B, $0.01 par value (convertible to Class A at time of sale) - authorized 60,000,000 shares; issued 15,942,809 shares at October 31, 2016 and 15,676,829 shares at October 31, 2015 (including 691,748 shares at October 31, 2016 and 2015 held in Treasury)
159
157
Paid in capital - common stock
706,137
703,751
Accumulated deficit
(856,183
)
(853,364
)
Treasury stock - at cost
(115,360
)
(115,360
)
Total stockholders’ equity deficit
(128,510
)
(128,084
)
Total liabilities and equity
$
2,379,440
$
2,602,298
(1) Derived from the audited balance sheet as of October 31, 2015
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Per Share Data)
(Unaudited)
Three Months Ended
Twelve Months Ended
October 31,
October 31,
2016
2015
2016
2015
Revenues:
Homebuilding:
Sale of homes
$
777,472
$
673,330
$
2,600,790
$
2,088,129
Land sales and other revenues
6,694
1,148
78,840
3,686
Total homebuilding
784,166
674,478
2,679,630
2,091,815
Financial services
20,903
18,726
72,617
56,665
Total revenues
805,069
693,204
2,752,247
2,148,480
Expenses:
Homebuilding:
Cost of sales, excluding interest
646,478
552,462
2,230,457
1,722,038
Cost of sales interest
25,698
19,959
92,391
59,613
Inventory impairment loss and land option write-offs
10,438
4,426
33,353
12,044
Total cost of sales
682,614
576,847
2,356,201
1,793,695
Selling, general and administrative
37,378
36,145
192,938
188,403
Total homebuilding expenses
719,992
612,992
2,549,139
1,982,098
Financial services
10,395
8,903
37,144
31,972
Corporate general and administrative
16,337
13,231
60,141
62,506
Other interest
22,499
21,241
90,967
91,835
Other operations
1,386
1,139
4,874
6,003
Total expenses
770,609
657,506
2,742,265
2,174,414
Loss on extinguishment of debt
(3,200
)
-
(3,200
)
-
Income (loss) from unconsolidated joint ventures
881
1,699
(4,346
)
4,169
Income (loss) before income taxes
32,141
37,397
2,436
(21,765
)
State and federal income tax provision (benefit):
State
(2,538
)
576
2,457
4,293
Federal
12,390
11,302
2,798
(9,958
)
Total income taxes
9,852
11,878
5,255
(5,665
)
Net income (loss)
$
22,289
$
25,519
$
(2,819
)
$
(16,100
)
Per share data:
Basic:
Income (loss) per common share
$
0.14
$
0.17
$
(0.02
)
$
(0.11
)
Weighted-average number of common shares outstanding
147,521
147,057
147,451
146,899
Assuming dilution:
Income (loss) per common share
$
0.14
$
0.16
$
(0.02
)
$
(0.11
)
Weighted-average number of common shares outstanding
160,590
160,299
147,451
146,899
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA EXCLUDES UNCONSOLIDATED JOINT VENTURES)
(UNAUDITED)
Communities Under Development
Three Months - October 31, 2016
Net Contracts
Deliveries
Contract
Three Months Ended
Three Months Ended
Backlog
Oct 31,
Oct 31,
Oct 31,
2016
2015
% Change
2016
2015
% Change
2016
2015
% Change
Northeast
(NJ, PA)
Home
106
143
(25.9
)%
162
136
19.1
%
204
293
(30.4
)%
Dollars
$
50,179
$ 66,846
(24.9
)%
$
81,467
$ 63,175
29.0
%
$
99,512
$ 147,004
(32.3
)%
Avg. Price $
473,383
$ 467,455
1.3
%
$
502,884
$ 464,522
8.3
%
$
487,803
$ 501,719
(2.8
)%
Mid-Atlantic
(DE, MD, VA, WV)
Home
196
236
(16.9
)%
332
256
29.7
%
430
453
(5.1
)%
Dollars
$
99,179
$ 114,191
(13.1
)%
$
162,902
$ 127,233
28.0
%
$
248,974
$ 239,099
4.1
%
Avg. Price $
506,012
$ 483,860
4.6
%
$
490,668
$ 497,004
(1.3
)%
$
579,009
$ 527,812
9.7
%
Midwest
(IL, MN, OH)
Home
125
232
(46.1
)%
215
284
(24.3
)%
374
644
(41.9
)%
Dollars
$
38,339
$ 73,693
(48.0
)%
$
62,193
$ 91,122
(31.7
)%
$
104,527
$ 194,290
(46.2
)%
Avg. Price $
306,712
$ 317,640
(3.4
)%
$
289,271
$ 320,852
(9.8
)%
$
279,485
$ 301,692
(7.4
)%
Southeast
(FL, GA, NC, SC)
Home
141
168
(16.1
)%
164
220
(25.5
)%
332
279
19.0
%
Dollars
$
53,372
$ 58,382
(8.6
)%
$
67,690
$ 63,074
7.3
%
$
145,171
$ 105,935
37.0
%
Avg. Price $
378,522
$ 347,512
8.9
%
$
412,744
$ 286,698
44.0
%
$
437,261
$ 379,699
15.2
%
Southwest
(AZ, TX)
Home
551
571
(3.5
)%
796
686
16.0
%
763
1,033
(26.1
)%
Dollars
$
190,426
$ 216,371
(12.0
)%
$
298,689
$ 262,713
13.7
%
$
285,644
$ 422,711
(32.4
)%
Avg. Price $
345,601
$ 378,933
(8.8
)%
$
375,237
$ 382,963
(2.0
)%
$
374,370
$ 409,207
(8.5
)%
West
(CA)
Home
180
185
(2.7
)%
201
145
38.6
%
295
203
45.3
%
Dollars
$
102,819
$ 95,419
7.8
%
$
104,531
$ 66,013
58.3
%
$
185,274
$ 106,886
73.3
%
Avg. Price $
571,218
$ 515,780
10.7
%
$
520,055
$ 455,262
14.2
%
$
628,047
$ 526,531
19.3
%
Consolidated Total
Home
1,299
1,535
(15.4
)%
1,870
1,727
8.3
%
2,398
2,905
(17.5
)%
Dollars
$
534,314
$ 624,902
(14.5
)%
$
777,472
$ 673,330
15.5
%
$
1,069,102
$ 1,215,925
(12.1
)%
Avg. Price $
411,327
$ 407,102
1.0
%
$
415,761
$ 389,884
6.6
%
$
445,831
$ 418,563
6.5
%
Unconsolidated Joint Ventures
Home
90
94
(4.3
)%
102
65
56.9
%
251
207
21.3
%
Dollars
$
48,394
$ 59,441
(18.6
)%
$
64,099
$ 37,730
69.9
%
$
152,430
$ 132,082
15.4
%
Avg. Price $
537,706
$ 632,347
(15.0
)%
$
628,417
$ 580,467
8.3
%
$
607,292
$ 638,077
(4.8
)%
Grand Total
Home
1,389
1,629
(14.7
)%
1,972
1,792
10.0
%
2,649
3,112
(14.9
)%
Dollars
$
582,708
$ 684,343
(14.9
)%
$
841,571
$ 711,060
18.4
%
$
1,221,532
$ 1,348,007
(9.4
)%
Avg. Price $
419,516
$ 420,100
(0.1
)%
$
426,760
$ 396,797
7.6
%
$
461,130
$ 433,164
6.5
%
DELIVERIES INCLUDE EXTRAS
Notes:
Net contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.
The Midwest net contracts include 54 homes and $23.0 million in 2015 from Minneapolis, MN. Contract backlog as of October 31, 2016 reflects the reduction of 64 homes and $24.1 million, related to the sale of our land portfolio in Minneapolis, MN.
The Southeast net contracts include 29 homes and $12.2 million in 2015 from Raleigh, NC. Contract backlog as of October 31, 2016 reflects the reduction of 67 homes and $33.7 million, related to the sale of our land portfolio in Raleigh, NC.
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA INCLUDES UNCONSOLIDATED JOINT VENTURES)
(UNAUDITED)
Communities Under Development
Three Months - October 31, 2016
Net Contracts
Deliveries
Contract
Three Months Ended
Three Months Ended
Backlog
Oct 31,
Oct 31,
Oct 31,
2016
2015
% Change
2016
2015
% Change
2016
2015
% Change
Northeast
(includes unconsolidated joint ventures) Home
116
156
(25.6
)%
169
141
19.9
%
231
341
(32.3
)%
(NJ, PA)
Dollars
$
54,173
$ 73,417
(26.2
)%
$
83,790
$ 69,345
20.8
%
$
109,775
$ 168,476
(34.8
)%
Avg. Price $
467,009
$ 470,623
(0.8
)%
$
495,797
$ 491,808
0.8
%
$
475,215
$ 494,065
(3.8
)%
Mid-Atlantic
(includes unconsolidated joint ventures) Home
208
244
(14.8
)%
348
288
20.8
%
470
467
0.6
%
(DE, MD, VA, WV)
Dollars
$
107,998
$ 118,957
(9.2
)%
$
171,133
$ 145,192
17.9
%
$
279,063
$ 246,906
13.0
%
Avg. Price $
519,220
$ 487,533
6.5
%
$
491,759
$ 504,141
(2.5
)%
$
593,751
$ 528,707
12.3
%
Midwest
(includes unconsolidated joint ventures) Home
126
232
(45.7
)%
218
284
(23.2
)%
386
644
(40.1
)%
(IL, MN, OH)
Dollars
$
38,744
$ 73,693
(47.4
)%
$
64,235
$ 91,121
(29.5
)%
$
114,116
$ 194,290
(41.3
)%
Avg. Price $
307,487
$ 317,640
(3.2
)%
$
294,658
$ 320,850
(8.2
)%
$
295,638
$ 301,692
(2.0
)%
Southeast
(includes unconsolidated joint ventures) Home
173
176
(1.7
)%
166
226
(26.5
)%
420
288
45.8
%
(FL, GA, NC, SC)
Dollars
$
67,754
$ 62,941
7.6
%
$
68,347
$ 65,449
4.4
%
$
188,893
$ 110,860
70.4
%
Avg. Price $
391,646
$ 357,617
9.5
%
$
411,729
$ 289,596
42.2
%
$
449,746
$ 384,930
16.8
%
Southwest
(includes unconsolidated joint ventures) Home
558
571
(2.3
)%
796
686
16.0
%
770
1,033
(25.5
)%
(AZ, TX)
Dollars
$
194,903
$ 216,371
(9.9
)%
$
298,688
$ 262,713
13.7
%
$
290,121
$ 422,711
(31.4
)%
Avg. Price $
349,289
$ 378,932
(7.8
)%
$
375,237
$ 382,963
(2.0
)%
$
376,781
$ 409,207
(7.9
)%
West
(includes unconsolidated joint ventures) Home
208
250
(16.8
)%
275
167
64.7
%
372
339
9.7
%
(CA)
Dollars
$
119,136
$ 138,964
(14.3
)%
$
155,378
$ 77,240
101.2
%
$
239,564
$ 204,764
17.0
%
Avg. Price $
572,769
$ 555,857
3.0
%
$
565,010
$ 462,513
22.2
%
$
643,990
$ 604,024
6.6
%
Grand Total
Home
1,389
1,629
(14.7
)%
1,972
1,792
10.0
%
2,649
3,112
(14.9
)%
Dollars
$
582,708
$ 684,343
(14.9
)%
$
841,571
$ 711,060
18.4
%
$
1,221,532
$ 1,348,007
(9.4
)%
Avg. Price $
419,516
$ 420,100
(0.1
)%
$
426,760
$ 396,797
7.6
%
$
461,130
$ 433,164
6.5
%
Consolidated Total
Home
1,299
1,535
(15.4
)%
1,870
1,727
8.3
%
2,398
2,905
(17.5
)%
Dollars
$
534,314
$ 624,902
(14.5
)%
$
777,472
$ 673,330
15.5
%
$
1,069,102
$ 1,215,925
(12.1
)%
Avg. Price $
411,327
$ 407,102
1.0
%
$
415,761
$ 389,884
6.6
%
$
445,831
$ 418,563
6.5
%
Unconsolidated Joint Ventures
Home
90
94
(4.3
)%
102
65
56.9
%
251
207
21.3
%
Dollars
$
48,394
$ 59,441
(18.6
)%
$
64,099
$ 37,730
69.9
%
$
152,430
$ 132,082
15.4
%
Avg. Price $
537,706
$ 632,347
(15.0
)%
$
628,417
$ 580,467
8.3
%
$
607,292
$ 638,077
(4.8
)%
DELIVERIES INCLUDE EXTRAS
Notes:
Net contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.
The Midwest net contracts include 54 homes and $23.0 million in 2015 from Minneapolis, MN. Contract backlog as of October 31, 2016 reflects the reduction of 64 homes and $24.1 million, related to the sale of our land portfolio in Minneapolis, MN.
The Southeast net contracts include 29 homes and $12.2 million in 2015 from Raleigh, NC. Contract backlog as of October 31, 2016 reflects the reduction of 67 homes and $33.7 million, related to the sale of our land portfolio in Raleigh, NC.
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA EXCLUDES UNCONSOLIDATED JOINT VENTURES)
(UNAUDITED)
Communities Under Development
Twelve Months - October 31, 2016
Net Contracts
Deliveries
Contract
Twelve Months Ended
Twelve Months Ended
Backlog
Oct 31,
Oct 31,
Oct 31,
2016
2015
% Change
2016
2015
% Change
2016
2015
% Change
Northeast
(NJ, PA)
Home
468
527
(11.2
)%
557
380
46.6
%
204
293
(30.4
)%
Dollars
$
226,635
$ 262,726
(13.7
)% $
274,126
$ 189,049
45.0
%
$
99,512
$ 147,004
(32.3
)%
Avg. Price $
484,261
$ 498,531
(2.9
)% $
492,147
$ 497,497
(1.1
)% $
487,803
$ 501,719
(2.8
)%
Mid-Atlantic
(DE, MD, VA, WV)
Home
949
936
1.4
%
960
854
12.4
%
430
453
(5.1
)%
Dollars
$
467,782
$ 448,307
4.3
%
$
457,906
$ 398,132
15.0
%
$
248,974
$ 239,099
4.1
%
Avg. Price $
492,920
$ 478,961
2.9
%
$
476,985
$ 466,197
2.3
%
$
579,009
$ 527,812
9.7
%
Midwest
(IL, MN, OH)
Home
724
937
(22.7
)%
921
958
(3.9
)%
374
644
(41.9
)%
Dollars
$
222,835
$ 317,059
(29.7
)% $
287,469
$ 311,364
(7.7
)% $
104,527
$ 194,290
(46.2
)%
Avg. Price $
307,784
$ 338,376
(9.0
)% $
312,127
$ 325,015
(4.0
)% $
279,485
$ 301,692
(7.4
)%
Southeast
(FL, GA, NC, SC)
Home
701
722
(2.9
)%
581
675
(13.9
)%
332
279
19.0
%
Dollars
$
287,538
$ 232,272
23.8
%
$
214,585
$ 207,407
3.5
%
$
145,171
$ 105,935
37.0
%
Avg. Price $
410,183
$ 321,706
27.5
%
$
369,339
$ 307,269
20.2
%
$
437,261
$ 379,699
15.2
%
Southwest
(AZ, TX)
Home
2,480
2,526
(1.8
)%
2,750
2,263
21.5
%
763
1,033
(26.1
)%
Dollars
$
887,341
$ 949,763
(6.6
)% $
1,024,410
$ 822,371
24.6
%
$
285,644
$ 422,711
(32.4
)%
Avg. Price $
357,799
$ 375,995
(4.8
)% $
372,512
$ 363,399
2.5
%
$
374,370
$ 409,207
(8.5
)%
West
(CA)
Home
787
535
47.1
%
695
377
84.4
%
295
203
45.3
%
Dollars
$
420,681
$ 238,080
76.7
%
$
342,294
$ 159,806
114.2
%
$
185,274
$ 106,886
73.3
%
Avg. Price $
534,539
$ 445,010
20.1
%
$
492,509
$ 423,889
16.2
%
$
628,047
$ 526,531
19.3
%
Consolidated Total
Home
6,109
6,183
(1.2
)%
6,464
5,507
17.4
%
2,398
2,905
(17.5
)%
Dollars
$
2,512,812
$ 2,448,207
2.6
%
$
2,600,790
$ 2,088,129
24.6
%
$
1,069,102
$ 1,215,925
(12.1
)%
Avg. Price $
411,329
$ 395,958
3.9
%
$
402,350
$ 379,177
6.1
%
$
445,831
$ 418,563
6.5
%
Unconsolidated Joint Ventures
Home
271
364
(25.5
)%
248
269
(7.8
)%
251
207
21.3
%
Dollars
$
160,924
$ 202,879
(20.7
)% $
140,576
$ 119,920
17.2
%
$
152,430
$ 132,082
15.4
%
Avg. Price $
593,814
$ 557,359
6.5
%
$
566,836
$ 445,799
27.2
%
$
607,292
$ 638,077
(4.8
)%
Grand Total
Home
6,380
6,547
(2.6
)%
6,712
5,776
16.2
%
2,649
3,112
(14.9
)%
Dollars
$
2,673,736
$ 2,651,086
0.9
%
$
2,741,366
$ 2,208,049
24.2
%
$
1,221,532
$ 1,348,007
(9.4
)%
Avg. Price $
419,081
$ 404,931
3.5
%
$
408,427
$ 382,280
6.8
%
$
461,130
$ 433,164
6.5
%
DELIVERIES INCLUDE EXTRAS
Notes:
Net contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.
The Midwest net contracts include 65 homes and $27.4 million and 246 homes and $98.2 million in 2016 and 2015, respectively, from Minneapolis, MN. Contract backlog as of October 31, 2016 reflects the reduction of 64 homes and $24.1 million, related to the sale of our land portfolio in Minneapolis, MN.
The Southeast net contracts include 70 homes and $31.6 million and 128 homes and $42.4 million in 2016 and 2015, respectively, from Raleigh, NC. Contract backlog as of October 31, 2016 reflects the reduction of 67 homes and $33.7 million, related to the sale of our land portfolio in Raleigh, NC.
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA INCLUDES UNCONSOLIDATED JOINT VENTURES)
(UNAUDITED)
Communities Under Development
Twelve Months - October 31, 2016
Net Contracts
Deliveries
Contract
Twelve Months Ended
Twelve Months Ended
Backlog
Oct 31,
Oct 31,
Oct 31,
2016
2015
% Change
2016
2015
% Change
2016
2015
% Change
Northeast
(includes unconsolidated joint ventures) Home
472
577
(18.2
)%
582
402
44.8
%
231
341
(32.3
)%
(NJ, PA)
Dollars
$
223,050
$ 286,792
(22.2
)% $
281,751
$ 199,896
40.9
%
$
109,775
$ 168,476
(34.8
)%
Avg. Price $
472,563
$ 497,040
(4.9
)% $
484,108
$ 497,255
(2.6
)% $
475,215
$ 494,065
(3.8
)%
Mid-Atlantic
(includes unconsolidated joint ventures) Home
1,010
1,006
0.4
%
1,007
945
6.6
%
470
467
0.6
%
(DE, MD, VA, WV)
Dollars
$
514,592
$ 485,551
6.0
%
$
482,436
$ 448,605
7.5
%
$
279,063
$ 246,906
13.0
%
Avg. Price $
509,496
$ 482,654
5.6
%
$
479,081
$ 474,714
0.9
%
$
593,751
$ 528,707
12.3
%
Midwest
(includes unconsolidated joint ventures) Home
730
940
(22.3
)%
924
978
(5.5
)%
386
644
(40.1
)%
(IL, MN, OH)
Dollars
$
234,466
$ 317,989
(26.3
)% $
289,511
$ 316,960
(8.7
)% $
114,116
$ 194,290
(41.3
)%
Avg. Price $
321,186
$ 338,286
(5.1
)% $
313,324
$ 324,090
(3.3
)% $
295,638
$ 301,692
(2.0
)%
Southeast
(includes unconsolidated joint ventures) Home
783
773
1.3
%
584
746
(21.7
)%
420
288
45.8
%
(FL, GA, NC, SC)
Dollars
$
327,378
$ 254,484
28.6
%
$
215,628
$ 236,617
(8.9
)% $
188,893
$ 110,860
70.4
%
Avg. Price $
418,108
$ 329,216
27.0
%
$
369,226
$ 317,181
16.4
%
$
449,746
$ 384,930
16.8
%
Southwest
(includes unconsolidated joint ventures) Home
2,487
2,526
(1.5
)%
2,750
2,263
21.5
%
770
1,033
(25.5
)%
(AZ, TX)
Dollars
$
891,819
$ 949,763
(6.1
)% $
1,024,409
$ 822,371
24.6
%
$
290,121
$ 422,711
(31.4
)%
Avg. Price $
358,592
$ 375,995
(4.6
)% $
372,512
$ 363,399
2.5
%
$
376,781
$ 409,207
(7.9
)%
West
(includes unconsolidated joint ventures) Home
898
725
23.9
%
865
442
95.7
%
372
339
9.7
%
(CA)
Dollars
$
482,431
$ 356,507
35.3
%
$
447,631
$ 183,600
143.8
%
$
239,564
$ 204,764
17.0
%
Avg. Price $
537,228
$ 491,734
9.3
%
$
517,493
$ 415,384
24.6
%
$
643,990
$ 604,024
6.6
%
Grand Total
Home
6,380
6,547
(2.6
)%
6,712
5,776
16.2
%
2,649
3,112
(14.9
)%
Dollars
$
2,673,736
$ 2,651,086
0.9
%
$
2,741,366
$ 2,208,049
24.2
%
$
1,221,532
$ 1,348,007
(9.4
)%
Avg. Price $
419,081
$ 404,931
3.5
%
$
408,427
$ 382,280
6.8
%
$
461,130
$ 433,164
6.5
%
Consolidated Total
Home
6,109
6,183
(1.2
)%
6,464
5,507
17.4
%
2,398
2,905
(17.5
)%
Dollars
$
2,512,812
$ 2,448,207
2.6
%
$
2,600,790
$ 2,088,129
24.6
%
$
1,069,102
$ 1,215,925
(12.1
)%
Avg. Price $
411,329
$ 395,958
3.9
%
$
402,350
$ 379,177
6.1
%
$
445,831
$ 418,563
6.5
%
Unconsolidated Joint Ventures
Home
271
364
(25.5
)%
248
269
(7.8
)%
251
207
21.3
%
Dollars
$
160,924
$ 202,879
(20.7
)% $
140,576
$ 119,920
17.2
%
$
152,430
$ 132,082
15.4
%
Avg. Price $
593,814
$ 557,359
6.5
%
$
566,836
$ 445,799
27.2
%
$
607,292
$ 638,077
(4.8
)%
DELIVERIES INCLUDE EXTRAS
Notes:
Net contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.
The Midwest net contracts include 65 homes and $27.4 million and 246 homes and $98.2 million in 2016 and 2015, respectively, from Minneapolis, MN. Contract backlog as of October 31, 2016 reflects the reduction of 64 homes and $24.1 million, related to the sale of our land portfolio in Minneapolis, MN.
The Southeast net contracts include 70 homes and $31.6 million and 128 homes and $42.4 million in 2016 and 2015, respectively, from Raleigh, NC. Contract backlog as of October 31, 2016 reflects the reduction of 67 homes and $33.7 million, related to the sale of our land portfolio in Raleigh, NC.
Contact:
J. Larry Sorsby
Executive Vice President & CFO
732-747-7800
Jeffrey T. O’Keefe
Vice President, Investor Relations
732-747-7800

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