Revenue Growth - Total revenues increased 13.4% to $673.6 million in Q1 fiscal 2025 compared to $594.2 million in Q1 fiscal 2024[4] - Sale of homes revenues increased 12.8% to $646.9 million (1,254 homes) in Q1 fiscal 2025 compared to $573.6 million (1,063 homes) in Q1 fiscal 2024[4] - Total revenues for the three months ended January 31, 2025, increased to $673,623,000, up from $594,196,000 in the same period of 2024, representing a growth of 13.4%[25] - Homebuilding revenues rose to $656.681 million, a 13.4% increase compared to $578.928 million in the prior year[43] Income and Profitability - Income before income taxes rose 22.4% to $39.9 million in Q1 fiscal 2025 from $32.6 million in the same period last year[6] - Net income for the three months ended January 31, 2025, was $28,191,000, compared to $23,904,000 in the prior year, reflecting an increase of 17.6%[25] - Income before income taxes for the three months ended January 31, 2025, was $39,863,000, an increase from $32,563,000 in the same period of 2024, representing a growth of 22.4%[26] - Net income available to common stockholders for the quarter was $25.522 million, representing a 20.8% increase from $21.235 million in the previous year[43] Margins and Costs - Homebuilding gross margin for the three months ended January 31, 2025, decreased to $98,391,000, with a gross margin percentage of 15.2%, down from 18.3% in the same period of 2024[28] - The company reported a homebuilding gross margin percentage of 18.3% before cost of sales interest expense and land charges, down from 21.8% in the same period of 2024[28] - The total cost of sales for homebuilding increased to $553.686 million, up 17.9% from $469.413 million in the prior year[43] Contracts and Backlog - Consolidated contracts increased 6.9% to 1,205 homes ($643.3 million) in Q1 fiscal 2025 compared to 1,127 homes ($624.4 million) in Q1 fiscal 2024[6] - The dollar value of consolidated contract backlog decreased 16.1% to $931.9 million as of January 31, 2025, compared to $1.11 billion a year earlier[6] - The backlog of contracts as of January 31, 2025, was $2.001 billion, down 10.9% from $2.245 billion a year earlier[44] Liquidity and Financial Position - Total liquidity as of January 31, 2025, was $222.4 million, within the targeted range of $170 million to $245 million[12] - Cash and cash equivalents decreased to $94,258 thousand from $209,976 thousand as of October 31, 2024[41] - Total assets as of January 31, 2025, were $2,533,275 thousand, down from $2,605,574 thousand as of October 31, 2024[41] - Total liabilities decreased to $1,721,849 thousand from $1,805,225 thousand as of October 31, 2024[41] Shareholder Information - The weighted average number of common shares outstanding increased to 6,517,000 for the three months ended January 31, 2025, compared to 6,496,000 in the prior year[25] - The weighted-average number of common shares outstanding increased to 7,071, up from 6,937 in the previous year, affecting per share calculations[43] Segment Performance - In the Northeast segment, home contracts increased by 64.8% to 117 homes, with revenues rising 37.3% to $78,729,000 compared to the previous year[48] - The Southeast segment saw home deliveries rise by 21.8% to 67 homes, with revenues increasing 37.9% to $42,990,000[48] - The West segment experienced a significant decline, with home contracts dropping by 57.7% to 11 homes and revenues falling 50.2% to $5,766,000[48] Joint Ventures - Income from unconsolidated joint ventures decreased to $9.205 million from $14.952 million in the same quarter of 2024[43] - Overall, unconsolidated joint ventures reported a 28.3% increase in home contracts to 195 homes, with revenues up 27.4% to $127,485,000[48] - The KSA joint venture showed remarkable growth, with home contracts increasing by 187.0% to 198 homes and revenues soaring 256.3% to $50,272,000[48] - The data from unconsolidated joint ventures serves as a supplementary indicator of the volume managed, reflecting the company's strategic focus on joint ventures for homebuilding[50]

Core Points - Hovnanian Enterprises, Inc. will release its financial results for the first quarter ended January 31, 2025, on February 24, 2025 [1] - The earnings conference call will be webcast live at 11:00 a.m. (ET) on the same day [1][2] - An archive of the webcast will be available for 12 months on the company's Investor Relations page [2] Company Overview - Hovnanian Enterprises, Inc. is one of the largest homebuilders in the United States, founded in 1959 and headquartered in Matawan, New Jersey [3] - The company operates in multiple states including Arizona, California, Delaware, Florida, Georgia, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina, Texas, Virginia, and West Virginia [3] - Homes are marketed under the trade name K. Hovnanian Homes, and the company is a significant builder of active lifestyle communities through its subsidiaries [3]

Group 1 - The homebuilding market presents interesting investment prospects, with previous calls yielding positive results [1] - Crude Value Insights focuses on cash flow and companies in the oil and natural gas sector, highlighting value and growth opportunities [1] - The service offers a stock model account, cash flow analyses of exploration and production firms, and live discussions about the sector [2] Group 2 - A two-week free trial is available for new subscribers to explore the oil and gas investment opportunities [3]

Part I [Business](index=4&type=section&id=Item%201%20Business) Hovnanian Enterprises, Inc. is a US homebuilder focusing on QMI homes and Build-For-Rent strategies across 13 states - The company operates through **two main divisions**: homebuilding and financial services. Homebuilding is divided into **three geographic segments**: Northeast, Southeast, and West[14](index=14&type=chunk)[28](index=28&type=chunk) - In fiscal 2024, the company and its unconsolidated joint ventures delivered a total of **6,201 homes**[14](index=14&type=chunk) - The company has strategically shifted its focus to increasing the availability of Quick-Move-In (QMI) homes and executing "Build-For-Rent" agreements to adapt to market conditions and improve inventory turnover[41](index=41&type=chunk) FY 2024 Homebuilding Operations by Segment | Segment | Housing Revenues (in thousands) | Homes Delivered | Average Sales Price | | :--- | :--- | :--- | :--- | | Northeast | $1,007,596 | 1,646 | $612,148 | | Southeast | $447,804 | 878 | $510,027 | | West | $1,420,088 | 2,824 | $502,864 | | **Consolidated Total** | **$2,875,488** | **5,348** | **$537,675** | - As of October 31, 2024, the company employed **1,878 full-time associates**, with **1,211 in homebuilding**, **171 in financial services**, and **496 in corporate operations**. The company emphasizes diversity, with **27.3% non-white associates** and **43.6% women**[29](index=29&type=chunk)[32](index=32&type=chunk) [Risk Factors](index=13&type=section&id=Item%201A%20Risk%20Factors) The company faces significant business, financial, regulatory, and organizational risks - **Business & Industry Risks:** The homebuilding industry is cyclical and highly sensitive to economic factors like interest rates, employment levels, inflation, and consumer confidence. Raw material and labor shortages can cause delays and increase costs[88](index=88&type=chunk)[89](index=89&type=chunk)[94](index=94&type=chunk) - **Debt & Liquidity Risks:** The company has a significant amount of debt (**$881.6 million** as of Oct 31, 2024, excluding certain items), which could limit its ability to obtain future financing and requires a substantial portion of cash flow for debt service. Restrictive covenants in debt instruments may also limit operational flexibility[141](index=141&type=chunk)[143](index=143&type=chunk)[153](index=153&type=chunk) - **Regulatory & Legal Risks:** Operations are subject to extensive and complex laws regarding land development, environmental protection, and building standards, which can cause delays and increase costs. The company is also exposed to product liability and warranty claims[159](index=159&type=chunk)[161](index=161&type=chunk)[166](index=166&type=chunk) - **Organizational Risks:** The Hovnanian family holds significant voting power (approx. **58%**), enabling them to exert substantial control. The company also has a federal net operating loss (NOL) carryforward of **$398.8 million**, the use of which could be limited by an "ownership change" under Section 382 of the IRC[177](index=177&type=chunk)[178](index=178&type=chunk) [Cybersecurity](index=25&type=section&id=Item%201C%20Cybersecurity) Cybersecurity risks are managed via a NIST-aligned program, overseen by a Board subcommittee, with no material breaches - The company's cybersecurity program is aligned with the National Institute of Standards and Technology (NIST) framework and includes regular scans, penetration tests, and vulnerability assessments[185](index=185&type=chunk) - A Cybersecurity Subcommittee of the Board of Directors, established in fiscal 2018, provides primary oversight, receiving regular updates on risks, mitigation efforts, and the threat landscape[191](index=191&type=chunk) - An Executive Incident Response Team, including the CFO and CIO, meets at least bi-annually to review the company's cybersecurity posture. The company has not experienced a significant cybersecurity breach with a material impact to date[193](index=193&type=chunk)[190](index=190&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=27&type=section&id=Item%205%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Hovnanian's Class A common stock significantly outperformed market indices over the past five years Five-Year Cumulative Total Return Comparison | Investment | 10/2019 | 10/2020 | 10/2021 | 10/2022 | 10/2023 | 10/2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hovnanian Enterprises, Inc. | **$100.00** | **$126.63** | **$335.96** | **$160.81** | **$277.03** | **$701.91** | | S&P 500 | **$100.00** | **$109.71** | **$156.79** | **$133.88** | **$147.46** | **$203.52** | | S&P Homebuilding | **$100.00** | **$117.37** | **$155.67** | **$132.48** | **$186.63** | **$310.37** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=29&type=section&id=Item%207%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal 2024 revenues increased to $3.0 billion with higher net income, driven by QMI homes and mortgage buydowns FY 2024 vs. FY 2023 Key Financial Results | Metric | FY 2024 (in thousands) | FY 2023 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $3.00B | $2.76B | +9.0% | | Sale of Homes Revenues | $2.88B | $2.63B | +9.3% | | Net Income | $242.0M | $205.9M | +17.5% | | Diluted EPS | $31.79 | $26.88 | +18.3% | | Homes Delivered | 5,348 | 4,878 | +9.6% | | Net Contracts (Homes) | 5,186 | 4,647 | +11.6% | - Homebuilding gross margin percentage decreased from **19.6%** in FY2023 to **18.7%** in FY2024, primarily due to increased use of incentives and concessions, including mortgage interest rate buydowns[223](index=223&type=chunk)[241](index=241&type=chunk) - The company increased spending on land purchases and development to **$995.4 million** in FY2024, reflecting a shift back to growth after several years of focusing on debt reduction[221](index=221&type=chunk)[42](index=42&type=chunk) - Total liquidity remained strong at **$338.2 million** as of October 31, 2024, comprising **$210.0 million** in cash and **$125.0 million** in available credit facility borrowings[282](index=282&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Fiscal 2024 revenues rose to $3.0 billion and net income to $242.0 million, despite lower homebuilding gross margin Homebuilding Gross Margin Reconciliation (FY 2024 vs. FY 2023) | Metric | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Gross Margin % | **18.7%** | **19.6%** | | Gross Margin %, before interest and land charges (Non-GAAP) | **22.0%** | **22.7%** | - The increase in homes delivered in FY2024 was a result of a **15.0%** increase in community count and an increase in Quick-Move-In (QMI) contracts[222](index=222&type=chunk) - Financial services income before taxes increased to **$24.1 million** in FY2024 from **$19.4 million** in FY2023, due to higher loan volume and average loan size. The capture rate for noncash buyers rose to **79.4%** from **70.1%**[264](index=264&type=chunk) - Corporate G&A expenses increased by **$36.5 million** in FY2024, mainly due to higher compensation expense from increased headcount and phantom stock awards linked to stock price performance[265](index=265&type=chunk) [Homebuilding Key Performance Indicators](index=35&type=section&id=Homebuilding%20Key%20Performance%20Indicators) Fiscal 2024 KPIs showed strong demand with increased net contracts and improved cancellation rates due to QMI focus Quarterly Contract Cancellation Rates (as % of Gross Sales) | Quarter | 2024 | 2023 | | :--- | :--- | :--- | | First | **14%** | **30%** | | Second | **14%** | **18%** | | Third | **17%** | **16%** | | Fourth | **18%** | **25%** | Consolidated Contract Backlog (as of Oct 31) | Metric | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Number of Homes | **1,649** | **1,824** | **-9.6%** | | Dollar Value | **$936.8M** | **$1,060.6M** | **-11.7%** | - The decrease in backlog was primarily driven by an increase in sales of QMI homes and an improved contract backlog conversion ratio[253](index=253&type=chunk) [Capital Resources and Liquidity](index=40&type=section&id=Capital%20Resources%20and%20Liquidity) The company maintained $338.2 million in liquidity, increased land spending, and reduced debt in fiscal 2024 Debt Balances (in thousands) | Debt Category | Oct 31, 2024 (in thousands) | Oct 31, 2023 (in thousands) | | :--- | :--- | :--- | | Total Senior Secured Notes | **$655,000** | **$768,502** | | Total Senior Notes | **$51,556** | **$180,710** | | Term Loans & Credit Facilities | **$175,000** | **$121,049** | | **Subtotal** | **$881,556** | **$1,070,261** | - In May 2024, the company completed a debt exchange that resulted in a **$75.3 million** principal reduction of its senior notes and term loans, involving a cash payment of **$31.5 million**[42](index=42&type=chunk)[419](index=419&type=chunk) - The company repurchased **188,800 shares** of its Class A common stock for **$26.5 million** in fiscal 2024[300](index=300&type=chunk) Total Controlled Home Sites (Consolidated) | Date | Owned | Optioned | Total | | :--- | :--- | :--- | :--- | | Oct 31, 2024 | **6,632** | **35,259** | **41,895** | | Oct 31, 2023 | **7,337** | **24,389** | **31,754** | [Critical Accounting Policies](index=46&type=section&id=Critical%20Accounting%20Policies) Critical accounting policies for inventory, joint ventures, warranty costs, and deferred taxes require significant judgment - **Inventories:** Assets are evaluated for impairment at the community level when indicators are present. This requires significant estimates of future selling prices, costs, and sales pace, which are dependent on specific market conditions[323](index=323&type=chunk)[324](index=324&type=chunk)[325](index=325&type=chunk) - **Warranty Costs:** Reserves for construction defects and warranty claims are established with the help of a third-party actuary and are subject to high variability due to uncertainties in claim trends, settlement patterns, and legal interpretations[334](index=334&type=chunk) - **Deferred Income Taxes:** The realization of deferred tax assets is dependent on generating future taxable income. A valuation allowance is established if it is 'more likely than not' that some portion of the DTAs will not be realized, requiring significant judgment in forecasting[335](index=335&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%207A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is interest rate exposure on fixed-rate long-term debt, with mortgage loan risk hedged Long-Term Debt Obligations by Maturity (as of Oct 31, 2024) | (In thousands) | 2026 | 2028 | 2029 | Thereafter | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Fixed Rate Debt (in thousands) | **$26,588** | **$400,000** | **$430,000** | **$24,968** | **$881,556** | | Weighted-Avg Rate | **13.50%** | **8.88%** | **11.75%** | **5.00%** | **10.31%** | - The company hedges interest rate risk on mortgage loans by obtaining forward commitments from private investors; it does not use financial instruments to hedge interest rate risk on its long-term debt[342](index=342&type=chunk) [Controls and Procedures](index=52&type=section&id=Item%209A%20Controls%20and%20Procedures) Disclosure controls and internal control over financial reporting were effective as of October 31, 2024 - Management concluded that the company's disclosure controls and procedures were effective as of **October 31, 2024**[347](index=347&type=chunk) - The independent auditor, Deloitte & Touche LLP, audited and confirmed the effectiveness of the company's internal control over financial reporting as of **October 31, 2024**[351](index=351&type=chunk) [Other Information](index=52&type=section&id=Item%209B%20Other%20Information) Paul Eberly was appointed Treasurer, and the Class A common stock repurchase authorization was increased - Paul Eberly was appointed to the position of Treasurer, effective **January 1, 2025**[352](index=352&type=chunk) - On **December 18, 2024**, the Board of Directors increased the company's stock repurchase authorization to a total of **$26.5 million** for its Class A common stock[353](index=353&type=chunk) Part III [Directors, Executive Officers, and Corporate Governance](index=53&type=section&id=Item%2010%20Directors%2C%20Executive%20Officers%2C%20and%20Corporate%20Governance) This section details the company's executive officers and corporate governance guidelines - Ara K. Hovnanian has been the CEO since **1997** and Chairman since **2009**[357](index=357&type=chunk) - Brad G. O'Connor was appointed CFO in **November 2023**, having previously served as Chief Accounting Officer since **2011**[358](index=358&type=chunk) [Security Ownership and Equity Compensation Plans](index=54&type=section&id=Item%2012%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section details the company's equity compensation plans, including securities for issuance and future availability Equity Compensation Plan Information (as of Oct 31, 2024) | Plan Category | Securities to be Issued (Options, Warrants, Rights) | Securities Remaining for Future Issuance | | :--- | :--- | :--- | | Equity compensation plans approved by security holders | **1,236,106** (**590,940 Class A**, **645,166 Class B**) | **541,154** | | Equity compensation plans not approved by security holders | - | - | | **Total** | **1,236,106** | **541,154** | Financial Statements and Supplementary Data [Consolidated Financial Statements](index=66&type=section&id=Consolidated%20Financial%20Statements) FY2024 consolidated financial statements show increased assets and equity, decreased liabilities, and higher net income Consolidated Balance Sheet Highlights | Account | Oct 31, 2024 (in thousands) | Oct 31, 2023 (in thousands) | | :--- | :--- | :--- | | Total Assets | **$2,605,574** | **$2,492,940** | | Total Liabilities | **$1,805,225** | **$1,911,151** | | Total Stockholders' Equity | **$800,349** | **$581,789** | Consolidated Statement of Operations Highlights | Account | FY 2024 (in thousands) | FY 2023 (in thousands) | FY 2022 (in thousands) | | :--- | :--- | :--- | :--- | | Total Revenues | **$3,004,918** | **$2,756,016** | **$2,922,231** | | Income Before Income Taxes | **$317,089** | **$255,951** | **$319,753** | | Net Income | **$242,008** | **$205,891** | **$225,490** | Consolidated Statement of Cash Flows Highlights | Account | FY 2024 (in thousands) | FY 2023 (in thousands) | FY 2022 (in thousands) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | **$23,640** | **$435,275** | **$89,466** | | Net cash used in investing activities | **($46,472)** | **($78,235)** | **($2,152)** | | Net cash used in financing activities | **($187,926)** | **($261,711)** | **($16,520)** | [Note 9: Senior Notes and Credit Facilities](index=82&type=section&id=Note%209.%20Senior%20Notes%20and%20Credit%20Facilities) This note details the company's debt structure, including a $113.5 million note redemption and a debt exchange - On **November 15, 2023**, the company redeemed in full its **$113.5 million** of **10.0%** Senior Secured **1.75 Lien Notes** due **2025**, resulting in a gain on extinguishment of debt of **$1.4 million**[498](index=498&type=chunk) - In **May 2024**, the company executed a series of private exchanges, swapping **$168.8 million** in aggregate principal of various senior notes and its unsecured term loan for **$93.5 million** in additional Secured Term Loans. This transaction simplified the capital structure and reduced total debt[499](index=499&type=chunk) - As of October 31, 2024, the company had a **$125.0 million** Senior Secured Revolving Credit Facility maturing in **June 2026**, with no borrowings outstanding[491](index=491&type=chunk)[509](index=509&type=chunk) [Note 12: Reduction of Inventory to Fair Value](index=90&type=section&id=Note%2012.%20Reduction%20of%20Inventory%20to%20Fair%20Value) Fiscal 2024 saw $10.0 million in inventory impairment charges and $1.6 million in abandoned land cost write-offs Inventory Impairments by Segment (FY 2024) | Segment | Number of Communities | Impairment Amount (in millions) | | :--- | :--- | :--- | | Northeast | **2** | **$4.8** | | West | **2** | **$5.2** | | **Total** | **4** | **$10.0** | - The company wrote off **$1.6 million** in costs for abandoned land options and related pre-development expenses in **FY2024**, compared to **$1.5 million** in **FY2023** and **$5.7 million** in **FY2022**[542](index=542&type=chunk) [Note 20: Investments in Unconsolidated Joint Ventures](index=97&type=section&id=Note%2020.%20Investments%20in%20Unconsolidated%20Homebuilding%20and%20Land%20Development%20Joint%20Ventures) Investment in unconsolidated JVs increased to $142.9 million, with a $45.7 million gain from a JV consolidation - The company's investment in unconsolidated JVs increased by **$45.0 million** in FY2024, primarily due to the formation of a new joint venture[302](index=302&type=chunk) - Upon consolidating a previously unconsolidated JV in the **third quarter of fiscal 2024**, the company recorded a gain of **$45.7 million**[586](index=586&type=chunk) Unconsolidated Joint Venture Financial Summary (as of Oct 31, 2024, in thousands) | Account | Amount (in thousands) | | :--- | :--- | | Total Assets | **$845,115** | | Total Liabilities | **$557,973** | | Hovnanian's Equity | **$140,540** | | Others' Equity | **$146,602** |

Financial Data and Key Metrics Changes - Total revenues for fiscal year 2024 were $3 billion, a 9% increase compared to the previous year [10] - Adjusted gross margin was 22%, slightly below the prior year's gross margin [10] - Adjusted EBITDA increased 7% to $456 million, while adjusted pretax income rose 16% to $327 million [10][11] - Fourth quarter revenues increased 10% year-over-year to just under $1 billion [12] Business Line Data and Key Metrics Changes - Income from unconsolidated joint ventures was $52 million, slightly below guidance due to delayed deliveries [9] - Adjusted EBITDA for the fourth quarter decreased to $159 million, and adjusted pretax profits decreased to $126 million [16] Market Data and Key Metrics Changes - Fourth quarter contracts increased 48% year-over-year, with a continued increase of 55% in November [18][19] - Contracts per community for the fourth quarter increased to 10.4%, a 25% year-over-year increase [21] Company Strategy and Development Direction - The company is focusing on a land-light strategy, which is expected to improve ROI despite lower gross margins [82] - Emphasis on pace over price is leading to higher inventory turnover and sales pace [35][36] - The introduction of a new national portfolio of home designs is aimed at simplifying the selection process for homebuyers [39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future demand, citing strong web traffic and positive economic fundamentals [24][26] - The company anticipates substantial growth in deliveries and revenues for fiscal 2025, with a focus on maintaining a strong sales pace [55][67] Other Important Information - The company ended the quarter with $338 million in liquidity, above the targeted range [51] - The percentage of lots controlled via option increased to 84%, indicating a strategic focus on land-light operations [48] Q&A Session Summary Question: Strategy shift regarding pace versus price - Management acknowledged the intentional shift towards prioritizing sales pace over margins, expecting improvements in EBIT margins as volume increases [79][84] Question: Asset-light strategy and renegotiation of deals - Management confirmed that they have not had to renegotiate or walk away from deals yet, maintaining normal walkaways during the due diligence period [87][90] Question: Possibility of early debt repayment - Management is monitoring the situation and considering refinancing options as call premiums decrease [99][100] Question: Share buybacks in the quarter - No share buybacks were executed in the fourth quarter [102] Question: Future SG&A trends - Management anticipates SG&A as a percentage of revenues could trend below 10% as the business scales [116]

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]

Core Insights - Hovnanian Enterprises, Inc. reported a significant increase in income before income taxes, which rose 24% year-over-year, reaching $317.1 million for the fiscal year ended October 31, 2024 [11] - The company experienced a 44% year-over-year growth in consolidated contracts during the fourth quarter, indicating strong consumer demand despite economic uncertainties [15][28] - Total revenues for the fourth quarter increased by 10.4% to $979.6 million, while annual revenues rose 9.0% to $3.00 billion [3][4] Financial Performance - Sale of homes revenues increased by 11.8% to $927.5 million in the fourth quarter, with total sales for the year reaching $2.88 billion, up 9.3% [4][6] - Adjusted EBITDA for the fiscal year increased by 11.4% to $445.4 million, exceeding guidance expectations [2][14] - Homebuilding gross margin percentage decreased to 18.0% for the fourth quarter, down from 21.4% in the previous year [7][8] Operational Metrics - Total consolidated lots controlled increased by 32% year-over-year, reaching 41,891 lots as of October 31, 2024 [24] - Land and land development spending surged by 45% in the fourth quarter to $318.4 million, marking the highest quarterly spend since fiscal 2010 [22] - The gross contract cancellation rate improved to 18% in the fourth quarter, down from 25% in the prior year [19] Market Position and Strategy - The company reported a 15% increase in consolidated community count, reaching 130 communities as of October 31, 2024 [16] - Management emphasized a strategic shift towards growth in fiscal 2024, with a focus on increasing lot count and community count to drive future delivery growth [28][29] - Hovnanian's return on equity (ROE) was reported at 34.6%, indicating strong performance relative to peers [20]

Core Insights - K. Hovnanian® Homes has launched a new and improved website, khov.com, on November 13, 2024, enhancing the online home-hunting experience [1] Group 1: Website Features - The new khov.com offers an elevated experience for homebuyers across mobile, tablet, and desktop platforms, featuring immersive renderings, scrolling videos, and interactive elements [2] - The enhanced Design & Price tool allows users to easily explore various options, visualize their home interiors, and understand pricing, making the process enjoyable and straightforward [3] - Improved search functionality enables users to narrow down homes by location and learn about the amenities of different areas, facilitating easier communication with sales consultants for scheduling tours [4] Group 2: Company Overview - Hovnanian Enterprises, Inc., founded in 1959, is one of the largest homebuilders in the U.S., operating in multiple states including Arizona, California, Florida, and Texas, and is known for its K. Hovnanian Homes and Brighton Homes brands [7] - The company also develops K. Hovnanian's Four Seasons communities, making it a significant player in the active lifestyle community segment [7]

Core Viewpoint - Hovnanian Enterprises, Inc. is set to release its financial results for the fourth quarter and fiscal year ending October 31, 2024, on December 5, 2024, with a conference call scheduled for the same day [1]. Company Overview - Hovnanian Enterprises, Inc. is one of the largest homebuilders in the United States, founded in 1959 and headquartered in Matawan, New Jersey [3]. - The company operates in multiple states including Arizona, California, Delaware, Florida, Georgia, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina, Texas, Virginia, and West Virginia [3]. - Homes are marketed under the trade name K. Hovnanian® Homes, and the company is also a significant builder of active lifestyle communities through its subsidiaries [3]. Investor Relations - The fourth quarter earnings conference call will be webcast live on the company's Investor Relations website, and participants are encouraged to access the event at least five minutes prior to the start [2]. - An archive of the webcast will be available for 12 months for those unable to attend the live event [2][4].

Core Points - K. Hovnanian® Homes' Phoenix Division received the 2024 Housing Innovation award from the U.S. Department of Energy for excellence in homebuilding, specifically for their Edgewood Estates project, which focuses on Zero Energy Ready Homes (ZERH) [1][2] - The homes built to the DOE ZERH standard are designed to significantly reduce energy consumption, allowing for the potential addition of renewable energy systems to offset energy usage [1] - The division's commitment to energy efficiency includes the use of advanced technologies such as spray foam insulation and heat pump water heaters, which were recognized at the Housing Innovation Awards Ceremony [2] - On November 6, 2024, the Phoenix Division will also be honored by Salt River Project for achievements in electrification, energy efficiency, and clean energy as part of their Business Solutions Program [3] - Hovnanian Enterprises, Inc. is one of the largest homebuilders in the U.S., with operations across multiple states and a focus on active lifestyle communities [4]