Hovnanian Enterprises reported a strong third quarter with a 10% increase in total revenues to $690.7 million and a significant 281% increase in pretax profit to $62 million. The homebuilding gross margin percentage also increased by 560 basis points year-over-year. The company paid off $111 million of senior secured notes in the third quarter and an additional $70 million early in the fourth quarter.
Total revenues increased by 10% to $690.7 million.
Pretax profit increased by 281% to $62 million.
Homebuilding gross margin percentage increased by 560 basis points to 19.2%.
Consolidated backlog dollars increased by 42% to $1.75 billion.
Hovnanian Enterprises provided financial guidance for the fourth quarter and full fiscal year 2021, assuming no adverse changes in current market conditions. They expect total revenues between $830 million and $880 million for Q4 and between $2.80 billion and $2.85 billion for the full year. Adjusted pretax income is expected to be between $60 million and $75 million for Q4 and between $175 million and $190 million for the full year. Adjusted EBITDA is projected to be between $100 million and $115 million for Q4 and between $345 million and $360 million for the full year. The company anticipates community count to grow to roughly 135 by the end of fiscal 2021, with continued growth expected in fiscal 2022.
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