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Jan 31, 2021

Hovnanian Q1 2021 Earnings Report

Reported a year-over-year improvement in pretax income and an increase in gross margin percentage.

Key Takeaways

Hovnanian Enterprises reported a 16.3% increase in total revenues to $574.7 million for the first quarter of fiscal 2021, compared to $494.1 million in the same quarter of the prior year. The company's income before income taxes was $19.6 million, a significant improvement from the prior year's loss of $7.4 million. Consolidated backlog dollars increased by 85% year-over-year to $1.67 billion.

Total revenues increased by 16.3% to $574.7 million.

Homebuilding gross margin percentage increased 440 basis points to 17.3%.

Consolidated backlog dollars increased 85% year-over-year to $1.67 billion.

Income before income taxes was $19.6 million, compared to a loss of $7.4 million in the prior year.

Total Revenue
$575M
Previous year: $494M
+16.3%
EPS
$2.75
Previous year: -$2.81
-197.9%
Homebuilding Gross Margin
17.3%
Previous year: 12.9%
+34.1%
Home Deliveries
1.39K
Previous year: 1.24K
+12.1%
Contract Cancellation Rate
17%
Previous year: 19%
-10.5%
Gross Profit
$94.4M
Previous year: $79.1M
+19.4%
Cash and Equivalents
$172M
Previous year: $81.4M
+111.4%
Free Cash Flow
-$95M
Previous year: $26.8M
-454.1%
Total Assets
$2.79B
Previous year: $1.79B
+56.1%

Hovnanian

Hovnanian

Hovnanian Revenue by Segment

Forward Guidance

For the second quarter of fiscal 2021, total revenues are expected to be between $700 million and $750 million; adjusted pretax income is expected to be between $30 million and $45 million and adjusted EBITDA is expected to be between $75 million and $90 million. For all of fiscal 2021, total revenues are expected to be between $2.65 billion and $2.80 billion; adjusted pretax income is expected to be between $140 million and $160 million and adjusted EBITDA is expected to be between $300 million and $340 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income