Home Sales Performance - Home sales revenue decreased by 5.3% to $650.3 million for the three months ended April 30, 2025, compared to $686.9 million for the same period in 2024[118]. - The average price per home decreased by 5.5% to $506,081 for the three months ended April 30, 2025, down from $535,408 in the same period of 2024[126]. - Net contracts decreased by 7.5% for the three months ended April 30, 2025, primarily due to macroeconomic uncertainty affecting consumer confidence[122]. - Contract backlog decreased to 1,711 homes as of April 30, 2025, down from 2,018 homes a year earlier, representing a 12.5% decrease in dollar value to $988.2 million[124]. - Sale of homes for the three months ended April 30, 2025, was $650.3 million, a decrease from $686.9 million in the same period of 2024[133]. - Contract cancellation rate for the first quarter of 2025 was 16%, up from 14% in 2024[139]. Financial Performance - Income before income taxes decreased to $26.5 million for the three months ended April 30, 2025, compared to $69.4 million for the same period in 2024[121]. - Gross margin percentage decreased to 13.8% for the three months ended April 30, 2025, down from 19.5% in the same period of 2024[119]. - Homebuilding gross margin decreased to 13.8% and 14.5% for the three and six months ended April 30, 2025, compared to 19.5% and 18.9% for the same periods in 2024[134]. - Selling, general and administrative expenses increased by $4.6 million to $51.1 million for the three months ended April 30, 2025[137]. - Income from unconsolidated joint ventures decreased by $2.1 million to $9.0 million for the three months ended April 30, 2025, primarily due to losses from two joint ventures[160]. - Corporate general and administrative expenses decreased to $29.5 million for the three months ended April 30, 2025, down from $32.5 million for the same period in the prior year, mainly due to lower stock compensation expenses[158]. Operational Metrics - The number of homes delivered increased by 0.2% to 1,285 for the three months ended April 30, 2025, compared to 1,283 in the same period of 2024[127]. - Net contracts per active selling community decreased to 11.2 and 20.8 for the three and six months ended April 30, 2025, from 13.9 and 24.2 in the prior year[138]. - Total home sites available increased due to acquiring new land parcels, partially offset by home deliveries[183]. - As of April 30, 2025, the company has a consolidated total of 42,447 homes across 125 active selling communities, with 12,627 homes actively selling and 29,820 homes proposed[184]. - The total unsold homes increased from 1,106 on October 31, 2024, to 1,132 on April 30, 2025, reflecting a decrease in sales pace during the second quarter of fiscal 2025[187]. Regional Performance - Homebuilding revenue in the Northeast increased by 29.2% to $257.3 million for the three months ended April 30, 2025, driven by a 36.0% increase in homes delivered[144]. - Income before income taxes in the Northeast decreased slightly by 1.0% to $31.4 million for the three months ended April 30, 2025, primarily due to a $1.7 million increase in selling, general and administrative expenses[145]. - Homebuilding revenue in the Southeast decreased by 42.0% to $74.7 million for the three months ended April 30, 2025, attributed to a 37.8% decrease in homes delivered[148]. - Income before income taxes in the Southeast dropped significantly by 98.6% to $0.4 million for the three months ended April 30, 2025, due to decreased homebuilding revenue and a significant decrease in gross margin percentage[149]. - Homebuilding revenue in the West decreased by 8.0% to $332.4 million for the three months ended April 30, 2025, impacted by a 3.4% decrease in homes delivered[152]. - Income before income taxes in the West decreased by 46.8% to $18.9 million for the three months ended April 30, 2025, primarily due to decreased homebuilding revenue and increased selling, general and administrative expenses[153]. Liquidity and Investments - The company spent $467.4 million on land purchases and development during the six months ended April 30, 2025, while maintaining total liquidity of $202.4 million[117]. - Total liquidity as of April 30, 2025, was $202.4 million, including $74.0 million in cash and cash equivalents and $125.0 million of borrowing capacity under the senior secured revolving credit facility[162]. - Cash used in operations was $33.6 million after spending $467.4 million on land and land development in the first half of fiscal 2025[164]. - Investments in unconsolidated joint ventures increased by $40.6 million to $183.5 million as of April 30, 2025, compared to October 31, 2024[180]. - The company repurchased 257,908 shares for a market value of $30.1 million at an average price of $116.70 per share during the six months ended April 30, 2025[178]. Debt and Financing - Senior notes and credit facilities, net of discounts, totaled $864.3 million as of April 30, 2025, down from $896.2 million at October 31, 2024[168]. - The company has 400,000 in long-term debt maturing in 2028 and 430,000 maturing in 2029, with a total long-term debt of $854.968 million as of April 30, 2025[198]. - The weighted average interest rate on long-term fixed-rate debt is 10.21% as of April 30, 2025[198]. - Cash used in financing activities was $81.0 million during the first half of fiscal 2025, primarily due to the redemption of 13.5% Senior Notes[164]. Market Conditions - The annual inflation rate in the U.S. was 2.3% in April 2025, significantly lower than its peak of 9.1% in June 2022, impacting home sales prices[190]. - Construction costs represented approximately 50.2% of the homebuilding cost of sales for the six months ended April 30, 2025[191]. - The company continues to utilize quick move-in homes to address affordability challenges in the current market environment[114].

Financial Performance - Total revenues decreased 3.1% to $686.5 million in Q2 FY2025 compared to $708.4 million in Q2 FY2024[4] - Net income for Q2 FY2025 was $19.7 million, or $2.43 per diluted share, compared to $50.8 million, or $6.66 per diluted share in Q2 FY2024[6] - Adjusted EBITDA for the three months ended April 30, 2025, was $61.3 million, compared to $102.2 million for the same period in 2024, reflecting a decrease of 40.1%[29] - The net income available to common stockholders for the three months ended April 30, 2025, was $17,057,000, a decline of 64.6% from $48,167,000 in 2024[42] - Income before income taxes for the three months ended April 30, 2025, was $26,530,000, a significant decrease of 61.8% compared to $69,392,000 in 2024[42] Homebuilding Metrics - Homebuilding gross margin percentage after cost of sales was 13.8% in Q2 FY2025, down from 19.5% in Q2 FY2024[4] - Consolidated contracts decreased 7.5% to 1,398 homes valued at $706.6 million in Q2 FY2025 compared to 1,512 homes valued at $785.8 million in Q2 FY2024[6] - Home deliveries totaled 1,398 units for the three months ended April 30, 2025, a decrease of 7.5% from 1,512 units in 2024[44] - Total home deliveries decreased by 1.4% to 2,603 homes compared to 2,639 homes in the previous year[49] - The backlog of contracts as of April 30, 2025, was 1,711 homes, reflecting a decrease of 15.2% from 2,018 homes in 2024[44] Liquidity and Financial Position - Total liquidity as of April 30, 2025, was $202.4 million, within the targeted range of $170 million to $245 million[13] - Cash and cash equivalents decreased to $73,980,000 as of April 30, 2025, from $209,976,000 as of October 31, 2024[40] - The company reported a total liabilities figure of $1,732,729,000 as of April 30, 2025, down from $1,805,225,000 in the previous period[40] - The company’s total stockholders' equity increased to $820,370,000 as of April 30, 2025, compared to $800,349,000 as of October 31, 2024[40] Future Outlook - The company expects total revenues for Q3 FY2025 to be between $750 million and $850 million[9] - Adjusted homebuilding gross margin for Q3 FY2025 is expected to be between 17.0% and 18.0%[9] - Forward-looking statements indicate potential risks including economic conditions, interest rate fluctuations, and supply chain issues that may impact future performance[23] Inventory and Assets - Total inventories increased to $1,743,965,000 as of April 30, 2025, compared to $1,644,804,000 as of October 31, 2024, reflecting a growth of approximately 6%[40] - Total assets decreased to $2,553,099,000 as of April 30, 2025, from $2,605,574,000 as of October 31, 2024[40] Segment Performance - The Northeast segment saw a 10.8% decrease in revenue to $513,432 thousand, while home deliveries increased by 35.0% to 895 homes[49] - The Southeast segment experienced a 12.1% increase in revenue to $159,970 thousand, with home deliveries rising by 10.9% to 304 homes[49] - The West segment reported a 2.2% decrease in revenue to $676,484 thousand, with home deliveries declining by 5.0% to 1,362 homes[49] Joint Ventures - Income from unconsolidated joint ventures for the three months ended April 30, 2025, was $9.0 million, down 19.0% from $11.2 million in the same period of 2024[25] - The company reports its proportionate share of income or loss from unconsolidated homebuilding and land development joint ventures as a separate line item in consolidated financial statements[61] - Overall, the unconsolidated joint ventures (excluding KSA JV) reported a 7.2% decrease in home deliveries to 231 units, with contract dollars down by 14.8% to $149.5 million[58]

Financial Performance - Total revenues increased 13.4% to $673.6 million in Q1 fiscal 2025, compared to $594.2 million in the same quarter last year[4] - Income before income taxes rose 22.4% to $39.9 million in Q1 fiscal 2025, compared to $32.6 million in the prior year[6] - Net income was $28.2 million, or $3.58 per diluted share, for Q1 fiscal 2025, compared to $23.9 million, or $2.91 per diluted share, in the same period last year[6] - Adjusted EBITDA for the three months ended January 31, 2025, was $72,074,000, an increase from $63,441,000 in 2024, indicating a growth of 13.0%[30] - Net income for the three months ended January 31, 2025, was $28,191,000, compared to $23,904,000 in 2024, reflecting an increase of 17.6%[25] - The company’s net income available to common stockholders for the three months ended January 31, 2025, was $25,522,000, compared to $21,235,000 in 2024, reflecting an increase of 20.5%[25] Homebuilding Metrics - Homebuilding gross margin percentage was 15.2% for Q1 fiscal 2025, down from 18.3% in the same quarter last year[4] - Consolidated contracts increased 6.9% to 1,205 homes in Q1 fiscal 2025, compared to 1,127 homes in the same quarter last year[6] - Home deliveries totaled 1,205 units, a 6.9% increase from 1,127 units in the same period last year[43] - The backlog of contracts as of January 31, 2025, was 2,001 homes, down 10.9% from 2,245 homes in the prior year[43] - Homebuilding revenues rose to $656.681 million, a 13.4% increase compared to $578.928 million in the prior year[42] Liquidity and Assets - Total liquidity as of January 31, 2025, was $222.4 million, within the targeted liquidity range of $170 million to $245 million[13] - Cash and cash equivalents decreased to $94,258 thousand from $209,976 thousand as of October 31, 2024[40] - Total assets as of January 31, 2025, were $2,533,275 thousand, down from $2,605,574 thousand as of October 31, 2024[40] - Total liabilities decreased to $1,721,849 thousand from $1,805,225 thousand as of October 31, 2024[40] Cost and Expenses - The cost of sales, excluding interest, increased to $533.290 million, up 18.7% from $449.213 million in the same quarter of 2024[42] - The interest incurred for the three months ended January 31, 2025, was $29,855,000, compared to $31,961,000 in 2024, showing a decrease of 6.6%[33] Joint Ventures and Investments - Income from unconsolidated joint ventures decreased to $9,205,000 for the three months ended January 31, 2025, down from $14,952,000 in 2024, a decline of 38.5%[25] - Investments in and advances to unconsolidated joint ventures increased to $172,679 thousand from $142,910 thousand as of October 31, 2024[40] - The company experienced a significant increase in contracts signed, with a 28.3% rise in homes contracted in unconsolidated joint ventures[43] Regional 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[47] - The Southeast segment saw home deliveries rise by 21.8% to 67 homes, with revenues increasing 37.9% to $42,990,000[47] - 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[47] Market Trends - The average price of homes sold decreased by 2.8% to $550,537 compared to $566,425 in the same quarter of 2024[43] - Average home prices in the Northeast decreased by 16.7% to $672,897, while the Southeast saw an increase of 13.2% to $641,642[47] - The average price in the West segment rose by 17.7% to $524,182, despite a significant drop in home deliveries[47] Overall Outlook - The overall performance indicates a mixed outlook, with strong growth in certain regions and segments, while others face challenges[47]

Sales and Revenue Performance - Housing revenues for the year ended October 31, 2024, totaled $2.875 billion with 5,348 homes delivered, resulting in an average sales price of $537,675[57]. - The dollar value of net sales contracts for fiscal 2024 was $2.8 billion, an increase of 10.1% from $2.5 billion in fiscal 2023, with the number of homes contracted rising 11.6% to 5,186[58]. - The company ended fiscal 2024 with 130 active selling communities, up from 113 in the previous year, with an average of 119 active selling communities[59]. - The backlog of signed contracts at October 31, 2024, was 2,052 homes valued at $1.2 billion, a decrease of 6.6% from 2,196 homes valued at $1.3 billion in 2023[62]. - The Northeast region generated $1,007,596,000 in housing revenues from 1,646 homes delivered, with an average sales price of $612,148[57]. - The Southeast region reported housing revenues of $447,804,000 from 878 homes delivered, averaging $510,027 per home[57]. - The West region achieved $1,420,088,000 in housing revenues with 2,824 homes delivered, averaging $502,864[57]. - Unconsolidated joint ventures contributed $539,028,000 in housing revenues from 853 homes delivered, with an average sales price of $631,920[57]. Land and Development Strategy - The company has a risk-averse land acquisition strategy, aiming to limit financial exposure through minimum cash investments and takedown options[41]. - The company increased its lot count, community count, and spending on land and land development during fiscal 2024[37]. - As of October 31, 2024, the company has 240 properties under option, totaling 28,228 developable home sites valued at $2.23 billion[66]. - Controlled land as of October 31, 2024, includes 29,549 total home sites, with a combined book value of $262,105 thousand[66]. - The company has incurred $125 million in option fees and deposits for properties under option as of October 31, 2024[66]. Operational Efficiency - The company has improved construction cycle times by approximately 30 days since the beginning of fiscal 2023, but still experiences increased cycle times of 30-45 days over pre-pandemic averages[49]. - The company maintains efficient operations by utilizing standardized materials and has reduced construction costs by consolidating vendors and executing national purchasing contracts[49]. - Labor and material shortages that arose during the COVID-19 pandemic have improved, with lumber prices decreasing in the second half of fiscal 2022 and into fiscal 2024[67]. - The company has reduced construction and administrative costs by consolidating vendors and executing national purchasing contracts, improving efficiency in operations[67]. Financial Management - The company repurchased $113.5 million, $245.0 million, and $100.0 million in aggregate principal of senior secured notes in fiscal years 2024, 2023, and 2022 respectively[37]. - In fiscal 2024, the company completed a debt exchange resulting in a $75.3 million principal reduction of senior notes and term loans, including a cash payment of $31.5 million[37]. - The company is focused on achieving high returns on invested capital, evaluating new communities based on internal rate of return requirements[40]. Workforce and Diversity - As of October 31, 2024, the company employed 1,878 full-time associates, with 1,211 involved in homebuilding operations[25]. - The company has a diverse associate base, with 27.3% non-white associates and 43.6% of associates being women as of October 31, 2024[28]. - The company is committed to diversity and inclusion, with 27.3% of associates being non-white and 43.6% being women as of October 31, 2024[28]. - The company has a strategy to engage associates through quarterly Town Halls and new communication channels like "Lunch & Learns" and "Coffee Chats"[31]. - The company has a repository of over 500 training modules/courses to facilitate associates' personal and professional growth[34]. Market Trends and Future Outlook - The company anticipates increasingly stringent regulatory requirements that could impact development timelines and costs in the future[73]. - The company anticipates that the majority of its backlog at October 31, 2024, will be completed and closed within the next six to nine months[62]. - The company shifted focus to increasing the availability of quick-move-in homes to provide customers with more certainty on mortgage payments[36]. - The company has increased its inventory of QMI homes as part of its current business strategy since fiscal 2022[48].

Financial Performance - Full year income before income taxes increased 24% year-over-year to $317.1 million[4] - Total revenues for the fourth quarter increased 10.4% to $979.6 million, and for the full year increased 9.0% to $3.00 billion[3] - Net income for the three months ended October 31, 2024, was $94.3 million, a decrease of 2.0% from $97.3 million in the same period of 2023[23] - Income before income taxes for the year ended October 31, 2024, was $317.1 million, an increase of 23.7% from $256.0 million in 2023[23] - Adjusted EBITDA for the three months ended October 31, 2024, was $159.0 million, compared to $181.2 million for the same period in 2023, reflecting a decrease of 12.2%[28] - Consolidated Adjusted EBIT for the quarter ended October 31, 2024, was $156.9 million, representing a 21.7% increase from $128.9 million in the prior quarter[33] Revenue and Sales - Sale of homes revenues in the fourth quarter increased 11.8% to $927.5 million, with 1,747 homes sold[3] - Homebuilding revenues for the year ended October 31, 2024, reached $2.93 billion, a 8.7% increase compared to $2.70 billion in 2023[37] - Total revenues for the three months ended October 31, 2024, increased to $979.6 million, up 10.4% from $887.0 million in the same period of 2023[37] - Consolidated total home contracts increased by 44.5% to 1,355 homes, with revenues rising by 25.1% to $705,564 thousand, despite a decrease in average price by 13.4% to $520,711[38] - The grand total for home contracts increased by 47.5% to 1,571 homes, with revenues rising by 30.4% to $845,654 thousand, while average price decreased by 11.6% to $538,290[38] Margins and Expenses - Homebuilding gross margin percentage for the fourth quarter was 18.0%, down from 21.4% in the prior year[4] - Total SG&A expenses were $87.7 million, or 9.0% of total revenues, in the fourth quarter[4] - Homebuilding gross margin percentage for the three months ended October 31, 2024, was 18.0%, down from 21.4% in the same period of 2023[26] - The company reported a homebuilding gross margin of $167.2 million for the three months ended October 31, 2024, compared to $177.6 million in the same period of 2023[26] Inventory and Liquidity - Total inventories as of October 31, 2024, amounted to $1.64 billion, an increase of 21.9% from $1.35 billion in 2023[35] - Cash and cash equivalents decreased to $210.0 million as of October 31, 2024, down from $434.1 million in the previous year[35] - Total liquidity as of October 31, 2024, was $210.0 million in cash and cash equivalents, plus $125.0 million available under a senior secured revolving credit facility[19] Market and Regional Performance - In the Northeast region, home contracts increased by 30.4% to 463 homes, while deliveries rose by 8.8% to 579 homes, resulting in a revenue increase of 10.9% to $279,076 thousand[38] - The Southeast region saw a decline in home contracts by 5.1% to 129 homes and a significant drop in deliveries by 61.1% to 239 homes, leading to a revenue decrease of 59.9% to $121,974 thousand[38] - The West region experienced a substantial increase in home contracts by 70.7% to 763 homes, with deliveries up by 27.6% to 962 homes, resulting in a revenue increase of 49.0% to $353,779 thousand[38] - The Northeast segment saw a 25.2% increase in contracts, rising to 1,809 in 2024 from 1,445 in 2023[41] - The Southeast segment experienced a significant decline in contracts, dropping 45.5% to 517 in 2024 from 948 in 2023[41] - The West segment reported a 26.9% increase in contracts, reaching 2,860 in 2024 compared to 2,254 in 2023[41] Joint Ventures and Strategic Initiatives - Investments in and advances to unconsolidated joint ventures increased to $142.9 million as of October 31, 2024, from $97.9 million in 2023[35] - The company continues to focus on expanding its market presence and enhancing its product offerings through strategic initiatives and joint ventures[39] - Unconsolidated joint ventures reported a 70.1% increase in home contracts to 216 homes, with revenues up by 66.2% to $140,090 thousand[38] - Overall, unconsolidated joint ventures (excluding KSA JV) delivered 216 homes, a 70.1% increase, with revenues up 66.2% to $140.090 million[46] Risks and Future Outlook - The company anticipates potential risks including fluctuations in interest rates and supply chain issues that may impact future performance[21] - For Q1 fiscal 2025, total revenues are expected to be between $650 million and $750 million[9]

Sales and Revenue - For the year ended October 31, 2023, consolidated housing revenues totaled $2.63 billion, with 4,878 homes delivered and an average sales price of $539,249[61]. - The dollar value of net sales contracts for fiscal 2023 was $2.51 billion, reflecting a 1.6% increase from $2.47 billion in fiscal 2022, with homes contracted increasing by 3.8% to 4,647[62]. - The backlog of signed contracts decreased by 12.1% to 2,196 homes at October 31, 2023, with sales values aggregating $1.3 billion compared to $1.5 billion in 2022[66]. - The average number of active selling communities increased slightly from 113 in fiscal 2022 to 114 in fiscal 2023, ending with 113 active selling communities[63]. - The Northeast region generated $933,156,000 in housing revenues from 1,618 homes delivered, averaging $576,734 per home[61]. - The Southeast region reported housing revenues of $419,656,000 from 776 homes delivered, with an average sales price of $540,794[61]. - The West region achieved housing revenues of $1,277,645,000 from 2,484 homes delivered, averaging $514,350 per home[61]. - Domestic unconsolidated joint ventures contributed $424,335,000 in housing revenues from 595 homes delivered, with an average sales price of $713,168[61]. Homebuilding Operations - The company is currently offering homes for sale in 113 communities across 27 markets in 13 states, with an average sales price of $539,000 in fiscal 2023[12]. - The company executed "Build-For-Rent" agreements in fiscal 2023, which added incremental sales volume and increased inventory turnover[37]. - The company shifted focus to increasing the availability of quick-move-in homes due to rising interest rates, providing customers with more certainty on mortgage payments[37]. - The company aims to achieve economies of scale by becoming a significant builder in each selected market, differentiating itself from competitors[39]. - The company maintains a risk-averse land acquisition strategy, limiting financial exposure through minimum cash investments and takedown options[43]. - The company is committed to customer satisfaction and quality, recognizing that future success relies on delivering quality homes to satisfied customers[41]. - The company has improved its cycle times but still faces challenges due to material and labor shortages, with expectations for alleviation as home sales slow nationally[51]. - The company has increased its inventory of quick-move-in homes in fiscal 2023 to align with its current business strategy[50]. Workforce and Diversity - As of October 31, 2023, the company employed 1,715 full-time associates, with 1,134 involved in homebuilding operations[26]. - The company has a diverse associate base, with 25.6% non-white associates and 44.3% of associates being women as of October 31, 2023[29]. - 19.0% of the company's associates have been with the company for more than 15 years, with an average tenure of approximately 7.5 years[28]. - The company has formed a Diversity & Inclusion Committee to enhance its initiatives in promoting a diverse and inclusive work environment[30]. - The company has a repository of over 500 training modules to facilitate associates' personal and professional growth[35]. Financial Management - The company repurchased $245.0 million, $100.0 million, and $180.9 million in aggregate principal of senior secured notes in fiscal years 2023, 2022, and 2021, respectively[38]. - The company incurred approximately $79.9 million in option fees and deposits for properties under option, along with an additional $32.1 million in nonrefundable predevelopment costs[70]. - The company walked away from 3,838 lots in fiscal 2023, resulting in a pre-tax income charge of $1.5 million, compared to 5,121 lots and a charge of $5.7 million in fiscal 2022[53]. Market Conditions and Challenges - Labor and material shortages have gradually improved since the COVID-19 pandemic, with lumber prices decreasing in the second half of fiscal 2022 and into fiscal 2023[73]. - The company is subject to extensive regulations that may impact its ability to develop communities, including potential building moratoriums due to insufficient infrastructure[76][79]. - The company is subject to extensive regulations that may affect land development and homebuilding operations, potentially leading to increased costs and delays[76]. - The company experienced a decrease in lumber prices during the second half of fiscal 2022 and into fiscal 2023, following previous supply chain issues[73].