MATAWAN, NJ, Oct 05, 2021 (GLOBE NEWSWIRE) – Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national home builder, today announced a revised forecast for the fourth quarter and the fiscal year ended October 31, 2021. The Company provides this information prior to meetings with investors at a forthcoming investor conference.
âWe are not immune to the same supply chain delays that our peers mentioned recently, which have been even more pronounced in the month since our last quarterly conference call,â said Ara K. Hovnanian, Chairman of the Board of Directors, President and Chief Executive Officer. Officer. âAs such, given these uncertainties and supply chain delays, we are revising our forecast for the fourth quarter and full year. Even with these changes, we expect the year-over-year improvements in pre-tax profitability for the full year to exceed 200%. “
For the fourth quarter of fiscal 2021, total revenues are expected to be between $ 780 and $ 830 million, adjusted profit before tax is expected to be between $ 45 and $ 60 million, and Adjusted EBITDA is expected to be between $ 85 and $ 100 million.
For full year 2021, total revenue is expected to be between $ 2.75 billion and $ 2.80 billion, adjusted profit before tax between $ 160 million and $ 175 million, and adjusted EBITDA between $ 330 million and $ 345 million. of dollars.
âAs we look to the future, we believe that today’s more rational and healthy contract pace, which has higher house prices and gross margins, as well as an increase in the number of communities, is expected to lead to further growth in total revenue and adjusted pre-tax profit in fiscal 2022. We currently expect to start fiscal 2022 with a strong first quarter compared to the first quarter of fiscal 2021, âsaid Mr. Hovnanian concluded.
About Hovnanian Enterprises, Inc.
Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, is headquartered in Matawan, New Jersey and, through its subsidiaries, is one of the nation’s largest home builders with operations in Arizona, California, Delaware, Florida, Georgia, Illinois, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina, Texas, Virginia, Washington, DC and West Virginia. The Company’s homes are marketed and sold under the trade name K. HovnanianÂ® Houses. In addition, the subsidiaries of the Company, as developers of Four Seasons of K. HovnanianÂ® communities, make the Company one of the greatest builders of active lifestyles in the country.
Additional information about Hovnanian Enterprises, Inc. can be found through the âInvestor Relationsâ section of the Hovnanian Enterprises website at http://www.khov.com. To be added to Hovnanian Investor Email or Fax Lists, please email [email protected] or register on http://www.khov.com.
STATEMENT ON ORIENTATION:
Financial guidance for the fourth quarter and full year 2021 does not assume any adverse changes in current market conditions, including further deterioration in the supply chain, and excludes the additional impact on general and administrative expenses. phantom shares related only to movements in the share price since closing. price of $ 104.39 as at July 30, 2021. Each increase or decrease of $ 4 in the price of the Company’s common shares from the end of the third quarter of fiscal 2021 results in an increase or decrease of approximately $ 1 million of dollars, respectively, of expenses related to ghost stocks.
NON-GAAP FINANCIAL MEASURES:
The Company cannot provide a reconciliation between its non-GAAP projections and the most directly comparable GAAP measures without unreasonable efforts because it is unable to predict with reasonable certainty the end result of certain material items required for the reconciliation. These items include, but are not limited to, land charges, impairment of inventory and write-offs of land options and loss (gain) on extinguishment of debt. These items are uncertain, depend on various factors and could have a material impact on the results reported under GAAP.
All statements in this press release that are not historical facts should be considered “forward-looking statements” within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known risks and unknowns, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to differ materially from future results, performance or achievements expressed or implied by forward-looking statements. These forward-looking statements include, without limitation, statements relating to the Company’s objectives and expectations with respect to its financial results for future financial periods. Although we believe that our plans, intentions and expectations reflected or suggested by these forward-looking statements are reasonable, we cannot guarantee that these plans, intentions or expectations will be realized. By their nature, forward-looking statements: (i) are valid only on the date on which they are made, (ii) do not constitute guarantees of future performance or results and (iii) are subject to risks, uncertainties and assumptions that are difficult to predict. or quantify. Therefore, actual results could differ materially and adversely from these forward-looking statements due to various factors. These risks, uncertainties and other factors include, but are not limited to, (1) the epidemic and spread of COVID-19 and actions that governments, agencies, law enforcement and / or health authorities implement to deal with it; (2) changes in general and local economic, industrial and commercial conditions and the impacts of a significant slowdown in housing construction; (3) adverse weather and other environmental conditions and natural disasters; (4) the seasonality of the Company’s activities; (5) the availability and cost of suitable land and improved lots and sufficient cash to invest in such land and lots; (6) shortages and fluctuations in the price of raw materials and labor, including due to changes in trade policies and the imposition of tariffs and duties on residential construction materials and products, and related trade disputes with and retaliatory actions taken by other countries; (7) the confidence and performance of subcontractors; (8) regional and local economic factors, including dependence on certain sectors of the economy, and employment levels affecting house prices and selling activity in markets where the Company build houses; (9) the increase in terminations of sales agreements; (10) fluctuations in interest rates and the availability of mortgage financing; (11) changes in tax laws affecting the after-tax costs of owning a home; (12) legal claims against us which are not resolved in our favor, such as product liability disputes, warranty claims and claims made by mortgage investors; (13) levels of competition; (14) utility shortages and outages or price fluctuations; (15) information technology failures and data security breaches; (16) negative publicity; (17) high leverage and restrictions on the operations and activities of the Company imposed by the agreements governing the outstanding debt of the Company; (18) the availability and conditions of the Company’s financing; (19) the Company’s sources of liquidity; (20) changes in credit scores; (21) government regulations, including regulations regarding land use planning, housing construction, customer sales and financing processes, tax laws and the environment; (22) operations through unconsolidated joint ventures with third parties; (23) significant influence of the controlling shareholders of the Company; (24) the availability of net operating loss carryforwards; (25) loss of key management personnel or inability to attract qualified personnel; and (26) certain risks, uncertainties and other factors described in detail in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2020 and the Company’s Quarterly Reports on Form 10-Q for the periods quarterly for fiscal year 2021. and subsequent filings with the Securities and Exchange Commission. Unless otherwise provided by applicable securities laws, we do not undertake to publicly update or revise forward-looking statements, whether as a result of new information, future events, changes in circumstances or for any another reason.
|Contact:||J. Larry Sorsby||Jeffrey T. O’Keefe|
|Executive Vice President and Chief Financial Officer||Vice President of Investor Relations|