Hovnanian Enterprises(HOV) - 2024 Q4 - Annual Results

Financial Performance - Full year income before income taxes increased 24% year-over-year to $317.1 million for fiscal 2024[10] - Net income for fiscal 2024 was$ 242.0 million, or $31.79 per diluted common share, compared to$ 205.9 million, or $26.88 per diluted common share, in fiscal 2023[12] - Net income for the three months ended October 31, 2024, was$ 94.3 million, down from $97.3 million in the same period in 2023, a decrease of 2.0%[41] - Adjusted income before income taxes, excluding land-related charges and loss on extinguishment of debt, net, was$ 125.8 million for the three months ended October 31, 2024, compared to $143.6 million in the same period in 2023[42] - Adjusted EBITDA for the year ended October 31, 2024, was$ 455,563,000, an increase of 6.7% from $426,825,000 in 2023[46] - Net income available to common stockholders was$ 91.7 million, a decrease from $94.6 million in the same quarter last year, representing a decline of 3%[53] Revenue Growth - Total revenues for the fourth quarter of fiscal 2024 increased 10.4% to$ 979.6 million compared to $887.0 million in the same quarter of the prior year[4] - Total revenues for the three months ended October 31, 2024, were$ 979.6 million, compared to $887.0 million for the same period in 2023, representing an increase of 10.4%[41] - Homebuilding revenues increased to$ 956.9 million for the three months ended October 31, 2024, compared to $868.0 million in the same period of 2023, representing a growth of 10%[53] - Total revenue rose by 10.1% to$ 2,761,519 thousand from $2,509,134 thousand year-over-year[56] Home Sales and Deliveries - Sale of homes revenues increased 11.8% to$ 927.5 million in the fourth quarter, with 1,747 homes sold compared to 1,517 homes in the previous year's fourth quarter[5] - Total home deliveries increased by 11.6% to 5,186 units compared to 4,647 units in the previous year[56] - The total number of homes sold across all regions was 1,571, a 47.5% increase from 1,065, indicating strong demand in the housing market[54] - The total consolidated home sales dollars reached $845.7 million, a 30.4% increase from$ 648.4 million, with an average price decline of 11.6% to $538.3 thousand[54] Margins and Expenses - Homebuilding gross margin percentage for the fourth quarter was 18.0%, down from 21.4% in the prior year[8] - Total expenses rose to$ 877.2 million, compared to $766.3 million in the prior year, reflecting an increase of 14.5%[53] - The cost of sales, excluding interest, increased to$ 735.3 million, compared to $637.1 million in the same period last year, an increase of 15.4%[53] Assets and Liabilities - Total assets increased to$ 2,605,574,000 as of October 31, 2024, from $2,492,940,000 in 2023, representing a growth of 4.5%[51] - The company’s total liabilities decreased to$ 1,799,746,000 as of October 31, 2024, from $1,909,290,000 in 2023, a reduction of 5.7%[51] - Cash and cash equivalents decreased to$ 209,976,000 as of October 31, 2024, from $434,119,000 in 2023, indicating a decline of 51.7%[51] Market Trends and Future Outlook - The company anticipates potential risks including fluctuations in interest rates, inflation, and supply chain issues that may impact future performance[39] - The company anticipates continued growth in contract backlog and home deliveries, driven by market expansion and new product offerings[54] - Future strategies include enhancing market presence through potential acquisitions and investments in new technologies to improve operational efficiency[54] Regional Performance - In the Northeast region, home contracts increased by 30.4% to 355, while deliveries rose by 8.8% to 532, resulting in a contract backlog growth of 26.7% to 617[54] - The West region saw a significant increase in home contracts by 70.7% to 763, with sales dollars rising by 49.0% to$ 353.8 million, despite a 12.7% decline in average price to $463.7 thousand[54] - Southeast segment home deliveries decreased by 45.5% to 517 units, with revenue down 37.3% to$ 279,431 thousand[56] Joint Ventures - The company reported income from unconsolidated joint ventures of $15.4 million for the three months ended October 31, 2024, down from$ 22.2 million in the same period in 2023[41] - The unconsolidated joint ventures reported a 66.2% increase in sales dollars to $140.1 million, with home deliveries up 70.1% to 216, and an average price decrease of 2.3% to$ 648.6 thousand[54] - KSA joint venture reported a staggering increase in home contracts by 6,700% to 68, but deliveries plummeted by 99.9% to 1, indicating significant volatility[58]