Delaware
(State or Other
Jurisdiction
of Incorporation)
|
1-8551
(Commission File Number)
|
22-1851059
(I.R.S. Employer
Identification No.)
|
o |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
99.1 |
Unaudited condensed consolidated financial statements of Hovnanian Enterprises, Inc. as of April 30, 2012, and for each of the three-month and six-month periods ended April 30, 2012 and 2011 reflecting the modifications to Note 22 to include financial information of the guarantor subsidiaries for the Securities pursuant to Rule 3-10 of Regulation S-X.
|
101* |
The following financial information for the quarter ended April 30, 2012 included in this Form 8-K as Exhibit 99.1, formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Balance Sheets at April 30, 2012 and October 31, 2011, (ii) the Condensed Consolidated Statements of Operations for the three and six months ended April 30, 2012 and 2011, (iii) the Condensed Consolidated Statement of Equity for the six months ended April 30, 2012, (iv) the Condensed Consolidated Statements of Cash Flows for the six months ended April 30, 2012 and 2011, and (v) the Notes to Condensed Consolidated Financial Statements (tagged as blocks of text).
|
* | XBRL Information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections. |
HOVNANIAN ENTERPRISES, INC.
|
|||
(Registrant)
|
|
||
By:
|
/s/ J. Larry Sorsby
|
||
Name: J. Larry Sorsby
|
|||
Title: Executive Vice President and Chief Financial Officer
|
|||
|
Exhibit Number | Exhibit |
99.1 |
Unaudited condensed consolidated financial statements of Hovnanian Enterprises, Inc. as of April 30, 2012, and for each of the three-month and six-month periods ended April 30, 2012 and 2011 reflecting the modifications to Note 22 to include financial information of the guarantor subsidiaries for the Securities pursuant to Rule 3-10 of Regulation S-X.
|
101* |
The following financial information for the quarter ended April 30, 2012 included in this Form 8-K as Exhibit 99.1, formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Balance Sheets at April 30, 2012 and October 31, 2011, (ii) the Condensed Consolidated Statements of Operations for the three and six months ended April 30, 2012 and 2011, (iii) the Condensed Consolidated Statement of Equity for the six months ended April 30, 2012, (iv) the Condensed Consolidated Statements of Cash Flows for the six months ended April 30, 2012 and 2011, and (v) the Notes to Condensed Consolidated Financial Statements (tagged as blocks of text).
|
* | XBRL Information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections. |
April 30,
2012
|
October 31,
2011
|
|||||||
(Unaudited)
|
(1) | |||||||
ASSETS
|
||||||||
Homebuilding:
|
||||||||
Cash and cash equivalents
|
$ | 195,158 | $ | 244,356 | ||||
Restricted cash
|
48,249 | 73,539 | ||||||
Inventories:
|
||||||||
Sold and unsold homes and lots under development
|
690,608 | 720,149 | ||||||
Land and land options held for future development or sale
|
228,487 | 245,529 | ||||||
Consolidated inventory not owned:
|
||||||||
Specific performance options
|
- | 2,434 | ||||||
Model sale leaseback financing programs
|
27,041 | - | ||||||
Total consolidated inventory not owned
|
27,041 | 2,434 | ||||||
Total inventories
|
946,136 | 968,112 | ||||||
Investments in and advances to unconsolidated joint ventures
|
60,512 | 57,826 | ||||||
Receivables, deposits, and notes
|
53,847 | 52,277 | ||||||
Property, plant, and equipment – net
|
51,239 | 53,266 | ||||||
Prepaid expenses and other assets
|
63,953 | 67,698 | ||||||
Total homebuilding
|
1,419,094 | 1,517,074 | ||||||
Financial services:
|
||||||||
Cash and cash equivalents
|
11,859 | 6,384 | ||||||
Restricted cash
|
8,908 | 4,079 | ||||||
Mortgage loans held for sale
|
75,077 | 72,172 | ||||||
Other assets
|
3,005 | 2,471 | ||||||
Total financial services
|
98,849 | 85,106 | ||||||
Total assets
|
$ | 1,517,943 | $ | 1,602,180 |
April 30,
2012
|
October 31,
2011
|
|||||||
(Unaudited)
|
(1) | |||||||
LIABILITIES AND EQUITY
|
||||||||
Homebuilding:
|
||||||||
Nonrecourse land mortgages
|
$ | 28,089 | $ | 26,121 | ||||
Accounts payable and other liabilities
|
275,615 | 303,633 | ||||||
Customers’ deposits
|
20,996 | 16,670 | ||||||
Nonrecourse mortgages secured by operating properties
|
19,269 | 19,748 | ||||||
Liabilities from inventory not owned
|
26,695 | 2,434 | ||||||
Total homebuilding
|
370,664 | 368,606 | ||||||
Financial services:
|
||||||||
Accounts payable and other liabilities
|
20,128 | 14,517 | ||||||
Mortgage warehouse line of credit
|
64,530 | 49,729 | ||||||
Total financial services
|
84,658 | 64,246 | ||||||
Notes payable:
|
||||||||
Senior secured notes
|
967,156 | 786,585 | ||||||
Senior notes
|
481,373 | 802,862 | ||||||
TEU senior subordinated amortizing notes
|
7,891 | 13,323 | ||||||
Accrued interest
|
18,050 | 21,331 | ||||||
Total notes payable
|
1,474,470 | 1,624,101 | ||||||
Income taxes payable
|
42,935 | 41,829 | ||||||
Total liabilities
|
1,972,727 | 2,098,782 | ||||||
Equity:
|
||||||||
Hovnanian Enterprises, Inc. stockholders’ equity deficit:
|
||||||||
Preferred stock, $.01 par value - authorized 100,000 shares; issued 5,600 shares with a liquidation preference of $140,000 at April 30, 2012 and at October 31, 2011
|
135,299 | 135,299 | ||||||
Common stock, Class A, $.01 par value – authorized 200,000,000 shares; issued 123,846,752 shares at April 30, 2012 and 92,141,492 shares at October 31, 2011 (including 11,760,763 and 11,694,720 shares at April 30, 2012 and October 31, 2011, respectively, held in Treasury)
|
1,238 | 921 | ||||||
Common stock, Class B, $.01 par value (convertible to Class A at time of sale) – authorized 30,000,000 shares; issued 15,351,701 shares at April 30, 2012 and 15,252,212 shares at October 31, 2011 (including 691,748 shares at April 30, 2012 and October 31, 2011 held in Treasury)
|
154 | 153 | ||||||
Paid in capital - common stock
|
649,623 | 591,696 | ||||||
Accumulated deficit
|
(1,125,969 | ) | (1,109,506 | ) | ||||
Treasury stock - at cost
|
(115,360 | ) | (115,257 | ) | ||||
Total Hovnanian Enterprises, Inc. stockholders’ equity deficit
|
(455,015 | ) | (496,694 | ) | ||||
Noncontrolling interest in consolidated joint ventures
|
231 | 92 | ||||||
Total equity deficit
|
(454,784 | ) | (496,602 | ) | ||||
Total liabilities and equity
|
$ | 1,517,943 | $ | 1,602,180 |
Three Months Ended April 30,
|
Six Months Ended April 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Revenues:
|
||||||||||||||||
Homebuilding:
|
||||||||||||||||
Sale of homes
|
$ | 312,494 | $ | 246,974 | $ | 564,824 | $ | 482,859 | ||||||||
Land sales and other revenues
|
20,691 | 2,819 | 31,270 | 12,407 | ||||||||||||
Total homebuilding
|
333,185 | 249,793 | 596,094 | 495,266 | ||||||||||||
Financial services
|
8,513 | 5,304 | 15,203 | 12,398 | ||||||||||||
Total revenues
|
341,698 | 255,097 | 611,297 | 507,664 | ||||||||||||
Expenses:
|
||||||||||||||||
Homebuilding:
|
||||||||||||||||
Cost of sales, excluding interest
|
271,563 | 210,463 | 488,990 | 411,893 | ||||||||||||
Cost of sales interest
|
13,317 | 13,956 | 25,793 | 29,582 | ||||||||||||
Inventory impairment loss and land option write-offs
|
3,216 | 16,925 | 6,541 | 30,450 | ||||||||||||
Total cost of sales
|
288,096 | 241,344 | 521,324 | 471,925 | ||||||||||||
Selling, general and administrative
|
35,125 | 39,837 | 68,379 | 80,044 | ||||||||||||
Total homebuilding expenses
|
323,221 | 281,181 | 589,703 | 551,969 | ||||||||||||
Financial services
|
5,363 | 5,177 | 10,540 | 10,647 | ||||||||||||
Corporate general and administrative
|
12,264 | 11,952 | 25,049 | 26,960 | ||||||||||||
Other interest
|
26,056 | 24,887 | 48,051 | 48,872 | ||||||||||||
Other operations
|
990 | 706 | 6,388 | 1,593 | ||||||||||||
Total expenses
|
367,894 | 323,903 | 679,731 | 640,041 | ||||||||||||
Gain (loss) on extinguishment of debt
|
27,039 | (1,644 | ) | 51,737 | (1,644 | ) | ||||||||||
Income (loss) from unconsolidated joint ventures
|
1,495 | (3,232 | ) | 1,473 | (4,224 | ) | ||||||||||
Income (loss) before income taxes
|
2,338 | (73,682 | ) | (15,224 | ) | (138,245 | ) | |||||||||
State and federal income tax (benefit) provision:
|
||||||||||||||||
State
|
468 | (372 | ) | 1,101 | 293 | |||||||||||
Federal
|
68 | (643 | ) | 138 | (1,729 | ) | ||||||||||
Total income taxes
|
536 | (1,015 | ) | 1,239 | (1,436 | ) | ||||||||||
Net income (loss)
|
$ | 1,802 | $ | (72,667 | ) | $ | (16,463 | ) | $ | (136,809 | ) | |||||
Per share data:
|
||||||||||||||||
Basic:
|
||||||||||||||||
Income (loss) per common share
|
$ | 0.02 | $ | (0.69 | ) | $ | (0.15 | ) | $ | (1.49 | ) | |||||
Weighted-average number of common shares outstanding
|
116,021 | 105,894 | 112,338 | 92,020 | ||||||||||||
Assuming dilution:
|
||||||||||||||||
Income (loss) per common share
|
$ | 0.02 | $ | (0.69 | ) | $ | (0.15 | ) | $ | (1.49 | ) | |||||
Weighted-average number of common shares outstanding
|
116,117 | 105,894 | 112,338 | 92,020 |
A Common Stock
|
B Common Stock
|
Preferred Stock
|
||||||||||||||||||||||||||||||||||||||||||
Shares Issued and Outstanding
|
Amount
|
Shares Issued and Outstanding
|
Amount
|
Shares Issued and Outstanding
|
Amount
|
Paid-In
Capital
|
Accumulated Deficit
|
Treasury Stock
|
Noncontrolling Interest
|
Total
|
||||||||||||||||||||||||||||||||||
Balance, November 1, 2011
|
80,446,772 | $ | 921 | 14,560,464 | $ | 153 | 5,600 | $ | 135,299 | $ | 591,696 | $ | (1,109,506 | ) | $ | (115,257 | ) | $ | 92 | $ | (496,602 | ) | ||||||||||||||||||||||
Stock options, amortization
and issuances
|
2,639 | 2,639 | ||||||||||||||||||||||||||||||||||||||||||
Restricted stock
amortization, issuances and
forfeitures
|
140,119 | 2 | 117,399 | 1 | 132 | 135 | ||||||||||||||||||||||||||||||||||||||
Stock issuance
|
25,000,000 | 250 | 47,000 | 47,250 | ||||||||||||||||||||||||||||||||||||||||
Issuance of shares for debt
|
3,064,330 | 30 | 8,191 | 8,221 | ||||||||||||||||||||||||||||||||||||||||
Settlement of prepaid common stock purchase contracts
|
3,482,901 | 35 | (35 | ) | - | |||||||||||||||||||||||||||||||||||||||
Conversion of Class B to
Class A Common Stock
|
17,910 | (17,910 | ) | - | ||||||||||||||||||||||||||||||||||||||||
Changes in noncontrolling
interest in consolidated
joint ventures
|
139 | 139 | ||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases
|
(66,043 | ) | (103 | ) | (103 | ) | ||||||||||||||||||||||||||||||||||||||
Net loss
|
(16,463 | ) | (16,463 | ) | ||||||||||||||||||||||||||||||||||||||||
Balance, April 30, 2012
|
112,085,989 | $ | 1,238 | 14,659,953 | $ | 154 | 5,600 | $ | 135,299 | $ | 649,623 | $ | (1,125,969 | ) | $ | (115,360 | ) | $ | 231 | $ | (454,784 | ) |
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
|
Six Months Ended
April 30, |
||||||||
2012
|
2011
|
|||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$ | (16,463 | ) | $ | (136,809 | ) | ||
Adjustments to reconcile net loss to net cash
used in operating activities: |
||||||||
Depreciation
|
3,217 | 4,565 | ||||||
Compensation from stock options and awards
|
2,867 | 3,617 | ||||||
Amortization of bond discounts and deferred financing costs
|
3,493 | 2,780 | ||||||
Gain on sale and retirement of property
and assets |
(127 | ) | (269 | ) | ||||
(Income) loss from unconsolidated joint ventures
|
(1,473 | ) | 4,224 | |||||
Distributions of earnings from unconsolidated joint ventures
|
297 | 293 | ||||||
(Gain) loss on extinguishment of debt
|
(51,737 | ) | 1,644 | |||||
Expenses related to the debt for debt exchange
|
4,683 | - | ||||||
Inventory impairment and land option write-offs
|
6,541 | 30,450 | ||||||
(Increase) decrease in assets:
|
||||||||
Mortgage loans held for sale
|
(2,905 | ) | 38,954 | |||||
Restricted cash, receivables, prepaids, deposits and
other assets |
18,953 | 29,384 | ||||||
Inventories
|
15,435 | (27,660 | ) | |||||
Increase (decrease) in liabilities:
|
||||||||
State and federal income tax liabilities
|
1,106 | 22,573 | ||||||
Customers’ deposits
|
4,326 | 5,707 | ||||||
Accounts payable, accrued interest and other accrued liabilities
|
(28,079 | ) | (75,412 | ) | ||||
Net cash used in operating activities
|
(39,866 | ) | (95,959 | ) | ||||
Cash flows from investing activities:
|
||||||||
Proceeds from sale of property and assets
|
134 | 928 | ||||||
Purchase of property, equipment, and other fixed assets
|
(728 | ) | (449 | ) | ||||
Investments in and advances to unconsolidated
joint ventures |
(2,768 | ) | (3,228 | ) | ||||
Distributions of capital from unconsolidated joint ventures
|
1,258 | 1,385 | ||||||
Net cash used in investing activities
|
(2,104 | ) | (1,364 | ) | ||||
Cash flows from financing activities:
|
||||||||
Proceeds from mortgages and notes
|
5,966 | 9,426 | ||||||
Payments related to mortgages and notes
|
(4,477 | ) | (13,785 | ) | ||||
Net proceeds from Senior Notes
|
- | 151,220 | ||||||
Net proceeds from TEU issuance
|
- | 83,707 | ||||||
Net proceeds from Common Stock issuance
|
47,250 | 54,899 | ||||||
Net payments related to mortgage
warehouse lines of credit |
14,801 | (40,115 | ) | |||||
Principal payments and debt repurchases
|
(73,024 | ) | (157,034 | ) | ||||
Proceeds from model sale leaseback financing programs
|
26,695 | - | ||||||
Deferred financing costs from note issuance
|
- | (4,445 | ) | |||||
Payments related to the debt for debt exchange
|
(18,861 | ) | - | |||||
Purchase of treasury stock
|
(103 | ) | - | |||||
Net cash (used in) provided by financing activities
|
(1,753 | ) | 83,873 | |||||
Net decrease in cash and cash equivalents
|
(43,723 | ) | (13,450 | ) | ||||
Cash and cash equivalents balance, beginning
of period |
250,740 | 367,180 | ||||||
Cash and cash equivalents balance, end of period
|
$ | 207,017 | $ | 353,730 |
Six Months Ended
April 30, |
||||||||
2012
|
2011
|
|||||||
Supplemental disclosures of cash flow:
|
||||||||
Cash paid during the period for:
|
||||||||
Income taxes
|
$
|
133
|
$
|
23,984
|
Three Months Ended
April 30,
|
Six Months Ended
April 30,
|
|||||||||||||||
(In thousands)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Interest capitalized at beginning of period
|
$ | 123,315 | $ | 134,504 | $ | 121,441 | $ | 136,288 | ||||||||
Plus interest incurred(1)
|
34,493 | 39,895 | 70,838 | 77,722 | ||||||||||||
Less cost of sales interest expensed
|
13,317 | 13,956 | 25,793 | 29,582 | ||||||||||||
Less other interest expensed(2)(3)
|
26,056 | 24,887 | 48,051 | 48,872 | ||||||||||||
Interest capitalized at end of period(4)
|
$ | 118,435 | $ | 135,556 | $ | 118,435 | $ | 135,556 |
(1)
|
Data does not include interest incurred by our mortgage and finance subsidiaries.
|
(2)
|
Other interest expensed is comprised of interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt. Interest on completed homes and land in planning, which does not qualify for capitalization, is expensed.
|
(3)
|
Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest, which is calculated as follows:
|
Three Months Ended April 30,
|
Six Months Ended April 30,
|
|||||||||||||||
(In thousands)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Other interest expensed
|
$ | 26,056 | $ | 24,887 | $ | 48,051 | $ | 48,872 | ||||||||
Interest paid by our mortgage and finance subsidiaries
|
468 | 425 | 944 | 1,007 | ||||||||||||
Decrease in accrued interest
|
14,350 | 10,634 | 3,283 | 1,649 | ||||||||||||
Cash paid for interest, net of capitalized interest
|
$ | 40,874 | $ | 35,946 | $ | 52,278 | $ | 51,528 |
(4)
|
We have incurred significant inventory impairments in recent years, which are determined based on total inventory including capitalized interest. However, the capitalized interest amounts above are shown gross before allocating any portion of the impairments to capitalized interest.
|
(Dollars in millions)
|
Three Months Ended
April 30, 2012 |
Three Months Ended
April 30, 2011 |
||||||||||||||||||||||
Number of
Communities
|
Dollar
Amount of
Impairment
|
Pre-
Impairment
Value(1)
|
Number of
Communities
|
Dollar
Amount of
Impairment
|
Pre-
Impairment
Value(1)
|
|||||||||||||||||||
Northeast
|
-
|
$ |
-
|
$ |
-
|
3
|
$ |
12.3
|
$ |
70.7
|
||||||||||||||
Mid-Atlantic
|
1
|
0.1
|
0.2
|
2
|
1.8
|
9.5
|
||||||||||||||||||
Midwest
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Southeast
|
5
|
2.0
|
4.5
|
-
|
-
|
-
|
||||||||||||||||||
Southwest
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
West
|
-
|
-
|
-
|
1
|
2.2
|
5.1
|
||||||||||||||||||
Total
|
6
|
$ |
2.1
|
$ |
4.7
|
6
|
$ |
16.3
|
$ |
85.3
|
(Dollars in millions)
|
Six Months Ended
April 30, 2012 |
Six Months Ended
April 30, 2011 |
||||||||||||||||||||||
Number of
Communities
|
Dollar
Amount of
Impairment
|
Pre-
Impairment
Value(1)
|
Number of
Communities
|
Dollar
Amount of
Impairment
|
Pre-
Impairment
Value(1)
|
|||||||||||||||||||
Northeast
|
5 | $ | 2.4 | $ | 16.1 | 5 | $ | 17.7 | $ | 88.6 | ||||||||||||||
Mid-Atlantic
|
3 | 0.4 | 0.8 | 3 | 2.1 | 10.9 | ||||||||||||||||||
Midwest
|
1 | 0.1 | 1.1 | - | - | - | ||||||||||||||||||
Southeast
|
8 | 2.3 | 5.4 | - | - | - | ||||||||||||||||||
Southwest
|
- | - | - | - | - | - | ||||||||||||||||||
West
|
- | - | - | 2 | 3.3 | 10.6 | ||||||||||||||||||
Total
|
17 | $ | 5.2 | $ | 23.4 | 10 | $ | 23.1 | $ | 110.1 |
Three Months Ended
April 30, |
||||||||||||||||
2012
|
2011
|
|||||||||||||||
(Dollars in millions)
|
Number of Walk-Away Lots
|
Dollar Amount of Write-Offs
|
Number of Walk-Away Lots
|
Dollar Amount of Write-Offs
|
||||||||||||
Northeast
|
-
|
$ |
0.3
|
56
|
$ |
-
|
||||||||||
Mid-Atlantic
|
3
|
0.1
|
1,522
|
0.1
|
||||||||||||
Midwest
|
67
|
0.1
|
98
|
0.4
|
||||||||||||
Southeast
|
593
|
0.6
|
190
|
0.1
|
||||||||||||
Southwest
|
165
|
-
|
2
|
-
|
||||||||||||
West
|
-
|
-
|
-
|
-
|
||||||||||||
Total
|
828
|
$ |
1.1
|
1,868
|
$ |
0.6
|
Six Months Ended
April 30, |
||||||||||||||||
2012
|
2011
|
|||||||||||||||
(Dollars in millions)
|
Number of Walk-Away Lots
|
Dollar Amount of Write-Offs
|
Number of Walk-Away Lots
|
Dollar Amount of Write-Offs
|
||||||||||||
Northeast
|
-
|
$ |
0.3
|
1,045
|
$ |
3.1
|
||||||||||
Mid-Atlantic
|
182
|
0.2
|
1,774
|
0.5
|
||||||||||||
Midwest
|
105
|
0.1
|
230
|
0.4
|
||||||||||||
Southeast
|
734
|
0.7
|
1,173
|
0.3
|
||||||||||||
Southwest
|
165
|
-
|
70
|
-
|
||||||||||||
West
|
-
|
-
|
143
|
3.0
|
||||||||||||
Total
|
1,186
|
$ |
1.3
|
4,435
|
$ |
7.3
|
Three Months Ended
April 30, |
Six Months Ended
April 30, |
|||||||||||||||
(In thousands)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Balance, beginning of period
|
$ | 124,725 | $ | 123,189 | $ | 123,865 | $ | 125,268 | ||||||||
Additions
|
8,492 | 5,357 | 17,082 | 12,845 | ||||||||||||
Charges incurred
|
(9,637 | ) | (9,779 | ) | (17,367 | ) | (19,346 | ) | ||||||||
Balance, end of period
|
$ | 123,580 | $ | 118,767 | $ | 123,580 | $ | 118,767 |
Three Months Ended
April 30,
|
Six Months Ended
April 30,
|
|||||||||||||||
(In thousands)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Loan origination reserves, beginning of period
|
$ | 6,429 | $ | 5,694 | $ | 5,063 | $ | 5,486 | ||||||||
Provisions for losses during the period
|
724 | 976 | 2,388 | 1,786 | ||||||||||||
Adjustments to pre-existing provisions for losses from changes in estimates
|
(39 | ) | (339 | ) | 53 | (917 | ) | |||||||||
Payments/settlements
|
(544 | ) | (767 | ) | (934 | ) | (791 | ) | ||||||||
Loan origination reserves, end of period
|
$ | 6,570 | $ | 5,564 | $ | 6,570 | $ | 5,564 |
Three Months Ended
April 30, |
Six Months Ended
April 30, |
|||||||||||||||
(In thousands)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Revenues:
|
||||||||||||||||
Northeast
|
$ | 51,775 | $ | 36,643 | $ | 93,307 | $ | 81,984 | ||||||||
Mid-Atlantic
|
64,776 | 46,840 | 119,171 | 93,262 | ||||||||||||
Midwest
|
23,631 | 17,484 | 41,829 | 31,574 | ||||||||||||
Southeast
|
36,346 | 16,918 | 56,555 | 32,438 | ||||||||||||
Southwest
|
114,716 | 99,248 | 206,540 | 190,641 | ||||||||||||
West
|
42,011 | 32,724 | 78,763 | 65,473 | ||||||||||||
Total homebuilding
|
333,255 | 249,857 | 596,165 | 495,372 | ||||||||||||
Financial services
|
8,513 | 5,304 | 15,203 | 12,398 | ||||||||||||
Corporate and unallocated
|
(70 | ) | (64 | ) | (71 | ) | (106 | ) | ||||||||
Total revenues
|
$ | 341,698 | $ | 255,097 | $ | 611,297 | $ | 507,664 | ||||||||
Income (loss) before income taxes:
|
||||||||||||||||
Northeast
|
$ | (125 | ) | $ | (20,086 | ) | $ | (5,773 | ) | $ | (34,724 | ) | ||||
Mid-Atlantic
|
5,058 | (5,830 | ) | 7,669 | (8,989 | ) | ||||||||||
Midwest
|
(91 | ) | (2,407 | ) | (1,247 | ) | (4,333 | ) | ||||||||
Southeast
|
(3,876 | ) | (3,660 | ) | (6,733 | ) | (6,680 | ) | ||||||||
Southwest
|
8,235 | 6,469 | 12,785 | 11,872 | ||||||||||||
West
|
(2,948 | ) | (8,394 | ) | (3,920 | ) | (17,008 | ) | ||||||||
Homebuilding income (loss) before income taxes
|
6,253 | (33,908 | ) | 2,781 | (59,862 | ) | ||||||||||
Financial services
|
3,150 | 127 | 4,663 | 1,751 | ||||||||||||
Corporate and unallocated
|
(7,065 | ) | (39,901 | ) | (22,668 | ) | (80,134 | ) | ||||||||
Income (loss) before income taxes
|
$ | 2,338 | $ | (73,682 | ) | $ | (15,224 | ) | $ | (138,245 | ) |
(In thousands)
|
April 30,
2012 |
October 31,
2011 |
||||||
Assets:
|
||||||||
Northeast
|
$ | 377,177 | $ | 385,217 | ||||
Mid-Atlantic
|
214,944 | 219,287 | ||||||
Midwest
|
67,774 | 59,105 | ||||||
Southeast
|
78,018 | 83,044 | ||||||
Southwest
|
193,336 | 188,321 | ||||||
West
|
153,454 | 168,590 | ||||||
Total homebuilding
|
1,084,703 | 1,103,564 | ||||||
Financial services
|
98,849 | 85,106 | ||||||
Corporate and unallocated
|
334,391 | 413,510 | ||||||
Total assets
|
$ | 1,517,943 | $ | 1,602,180 |
(Dollars in thousands)
|
April 30, 2012
|
|||||||||||
Homebuilding
|
Land Development
|
Total
|
||||||||||
Assets:
|
||||||||||||
Cash and cash equivalents
|
$ |
23,038
|
$ |
105
|
$ |
23,143
|
||||||
Inventories
|
283,058
|
15,666
|
298,724
|
|||||||||
Other assets
|
20,718
|
5
|
20,723
|
|||||||||
Total assets
|
$ |
326,814
|
$ |
15,776
|
$ |
342,590
|
||||||
Liabilities and equity:
|
||||||||||||
Accounts payable and accrued liabilities
|
$ |
29,375
|
$ |
11,442
|
$ |
40,817
|
||||||
Notes payable
|
162,266
|
21
|
162,287
|
|||||||||
Total liabilities
|
191,641
|
11,463
|
203,104
|
|||||||||
Equity of:
|
||||||||||||
Hovnanian Enterprises, Inc.
|
52,073
|
1,170
|
53,243
|
|||||||||
Others
|
83,100
|
3,143
|
86,243
|
|||||||||
Total equity
|
135,173
|
4,313
|
139,486
|
|||||||||
Total liabilities and equity
|
$ |
326,814
|
$ |
15,776
|
$ |
342,590
|
||||||
Debt to capitalization ratio
|
55%
|
0%
|
54%
|
(Dollars in thousands)
|
October 31, 2011
|
|||||||||||
Homebuilding
|
Land Development
|
Total
|
||||||||||
Assets:
|
||||||||||||
Cash and cash equivalents
|
$ |
21,380
|
$ |
287
|
$ |
21,667
|
||||||
Inventories
|
310,743
|
14,786
|
325,529
|
|||||||||
Other assets
|
25,388
|
-
|
25,388
|
|||||||||
Total assets
|
$ |
357,511
|
$ |
15,073
|
$ |
372,584
|
||||||
Liabilities and equity:
|
||||||||||||
Accounts payable and accrued liabilities
|
$ |
21,035
|
$ |
11,710
|
$ |
32,745
|
||||||
Notes payable
|
199,821
|
21
|
199,842
|
|||||||||
Total liabilities
|
$ |
220,856
|
11,731
|
232,587
|
||||||||
Equity of:
|
||||||||||||
Hovnanian Enterprises, Inc.
|
52,013
|
1,312
|
53,325
|
|||||||||
Others
|
84,642
|
2,030
|
86,672
|
|||||||||
Total equity
|
136,655
|
3,342
|
139,997
|
|||||||||
Total liabilities and equity
|
$ |
357,511
|
$ |
15,073
|
$ |
372,584
|
||||||
Debt to capitalization ratio
|
59
|
%
|
1
|
%
|
59
|
%
|
For the Three Months Ended April 30, 2012
|
||||||||||||
(In thousands)
|
Homebuilding
|
Land Development
|
Total
|
|||||||||
Revenues
|
$ | 78,534 | $ | 2,727 | $ | 81,261 | ||||||
Cost of sales and expenses
|
(73,792 | ) | (1,381 | ) | (75,173 | ) | ||||||
Joint venture net income
|
$ | 4,742 | $ | 1,346 | $ | 6,088 | ||||||
Our share of net income
|
$ | 1,035 | $ | 633 | $ | 1,668 |
For the Three Months Ended April 30, 2011
|
||||||||||||
(In thousands)
|
Homebuilding
|
Land Development
|
Total
|
|||||||||
Revenues
|
$ | 29,490 | $ | 1,745 | $ | 31,235 | ||||||
Cost of sales and expenses
|
(35,523 | ) | (1,400 | ) | (36,923 | ) | ||||||
Joint venture net (loss) income
|
$ | (6,033 | ) | $ | 345 | $ | (5,688 | ) | ||||
Our share of net (loss) income
|
$ | (2,927 | ) | $ | 137 | $ | (2,790 | ) |
For the Six Months Ended April 30, 2012
|
||||||||||||
(In thousands)
|
Homebuilding
|
Land Development
|
Total
|
|||||||||
Revenues
|
$ | 131,131 | $ | 6,083 | $ | 137,214 | ||||||
Cost of sales and expenses
|
(126,487 | ) | (4,585 | ) | (131,072 | ) | ||||||
Joint venture net income
|
$ | 4,644 | $ | 1,498 | $ | 6,142 | ||||||
Our share of net income
|
$ | 984 | $ | 749 | $ | 1,733 |
For the Six Months Ended April 30, 2011
|
||||||||||||
(In thousands)
|
Homebuilding
|
Land Development
|
Total
|
|||||||||
Revenues
|
$ | 52,521 | $ | 6,639 | $ | 59,160 | ||||||
Cost of sales and expenses
|
(60,428 | ) | (6,139 | ) | (66,567 | ) | ||||||
Joint venture net (loss) income
|
$ | (7,907 | ) | $ | 500 | $ | (7,407 | ) | ||||
Our share of net (loss) income
|
$ | (3,929 | ) | $ | 280 | $ | (3,649 | ) |
(In thousands)
|
Fair Value Hierarchy
|
Fair Value at
April 30, 2012
|
Fair Value at
October 31, 2011
|
||||||
Mortgage loans held for sale (1)
|
Level 2
|
$
|
75,557
|
$
|
73,126
|
||||
Interest rate lock commitments
|
Level 2
|
133
|
142
|
||||||
Forward contracts
|
Level 2
|
(613)
|
(1,096
|
)
|
|||||
$
|
75,077
|
$
|
72,172
|
Three Months Ended April 30, 2012
|
||||||||||||
(In thousands)
|
Loans Held
For Sale
|
Interest Rate Lock Commitments
|
Forward Contracts
|
|||||||||
Changes in fair value included in net income (loss), all reflected in financial services revenues
|
$
|
(51)
|
$
|
(4)
|
$
|
(136)
|
Three Months Ended April 30, 2011
|
||||||||||||
(In thousands)
|
Loans Held
For Sale
|
Interest Rate Lock Commitments
|
Forward Contracts
|
|||||||||
Changes in fair value included in net income (loss), all reflected in financial services revenues
|
$
|
587
|
$
|
376
|
$
|
(800
|
)
|
Six Months Ended April 30, 2012
|
||||||||||||
(In thousands)
|
Loans Held
For Sale
|
Interest Rate Lock Commitments
|
Forward Contracts
|
|||||||||
Changes in fair value included in net income (loss), all reflected in financial services revenues
|
$
|
(446)
|
$
|
(9)
|
$
|
482
|
Six Months Ended April 30, 2011
|
||||||||||||
(In thousands)
|
Loans Held
For Sale
|
Interest Rate Lock Commitments
|
Forward Contracts
|
|||||||||
Changes in fair value included in net income (loss), all reflected in financial services revenues
|
$
|
(380
|
)
|
$
|
307
|
$
|
(759
|
)
|
Three Months Ended
April 30, 2012 |
|||||||||||||
(In thousands)
|
Fair Value Hierarchy
|
Pre-Impairment Amount
|
Total Losses
|
Fair Value
|
|||||||||
Sold and unsold homes and lots under development
|
Level 3
|
$
|
4,550
|
$
|
(2,011)
|
$
|
2,539
|
||||||
Land and land options held for future development or sale
|
Level 3
|
$
|
180
|
$
|
(91)
|
$
|
89
|
Three Months Ended
April 30, 2011 |
|||||||||||||
(In thousands)
|
Fair Value Hierarchy
|
Pre-Impairment Amount
|
Total Losses
|
Fair Value
|
|||||||||
Sold and unsold homes and lots under development
|
Level 3
|
$
|
54,573
|
$
|
(11,823
|
)
|
$
|
42,750
|
|||||
Land and land options held for future development or sale
|
Level 3
|
$
|
30,716
|
$
|
(4,470
|
)
|
$
|
26,246
|
Six Months Ended
April 30, 2012 |
|||||||||||||
(In thousands)
|
Fair Value Hierarchy
|
Pre-Impairment Amount
|
Total Losses
|
Fair Value
|
|||||||||
Sold and unsold homes and lots under development
|
Level 3
|
$
|
6,978
|
$
|
(2,715)
|
$
|
4,263
|
||||||
Land and land options held for future development or sale
|
Level 3
|
$
|
16,496
|
$
|
(2,528)
|
$
|
13,968
|
Six Months Ended
April 30, 2011 |
|||||||||||||
(In thousands)
|
Fair Value Hierarchy
|
Pre-Impairment Amount
|
Total Losses
|
Fair Value
|
|||||||||
Sold and unsold homes and lots under development
|
Level 3
|
$
|
66,705
|
$
|
(14,027
|
)
|
$
|
52,678
|
|||||
Land and land options held for future development or sale
|
Level 3
|
$
|
43,430
|
$
|
(9,045
|
)
|
$
|
34,385
|
Parent
|
Subsidiary Issuer
|
Guarantor Subsidiaries
|
Nonguarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
ASSETS:
|
||||||||||||||||||||||||
Homebuilding
|
$
|
10,789
|
$
|
160,822
|
$
|
1,029,093
|
$
|
218,390
|
$
|
-
|
$
|
1,419,094
|
||||||||||||
Financial services
|
9,292
|
89,557
|
98,849
|
|||||||||||||||||||||
Investments in and amounts due to and from consolidated subsidiaries
|
(422,415
|
)
|
2,065,789
|
(2,432,465
|
)
|
3,229
|
785,862
|
-
|
||||||||||||||||
Total assets
|
$
|
(411,626
|
)
|
$
|
2,226,611
|
$
|
(1,394,080
|
)
|
$
|
311,176
|
$
|
785,862
|
$
|
1,517,943
|
||||||||||
LIABILITIES AND EQUITY:
|
||||||||||||||||||||||||
Homebuilding
|
$
|
3,533
|
$
|
(28
|
)
|
$
|
347,595
|
$
|
19,564
|
$
|
-
|
$
|
370,664
|
|||||||||||
Financial services
|
9,142
|
75,516
|
84,658
|
|||||||||||||||||||||
Notes payable
|
1,474,368
|
102
|
1,474,470
|
|||||||||||||||||||||
Income taxes payable
|
39,856
|
3,079
|
42,935
|
|||||||||||||||||||||
Stockholders’ (deficit) equity
|
(455,015
|
)
|
752,271
|
(1,753,998
|
)
|
215,865
|
785,862
|
(455,015
|
)
|
|||||||||||||||
Non-controlling interest in consolidated joint ventures
|
231
|
231
|
||||||||||||||||||||||
Total liabilities and equity
|
$
|
(411,626
|
)
|
$
|
2,226,611
|
$
|
(1,394,080
|
)
|
$
|
311,176
|
$
|
785,862
|
$
|
1,517,943
|
Parent
|
Subsidiary Issuer
|
Guarantor Subsidiaries
|
Nonguarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
ASSETS:
|
||||||||||||||||||||||||
Homebuilding
|
$
|
12,756
|
$
|
200,281
|
$
|
1,096,594
|
$
|
207,443
|
$
|
$
|
1,517,074
|
|||||||||||||
Financial services
|
4,537
|
80,569
|
85,106
|
|||||||||||||||||||||
Investments in and amounts due to and from consolidated subsidiaries
|
(467,562
|
)
|
2,140,349
|
(2,435,348
|
)
|
(9,364
|
)
|
771,925
|
-
|
|||||||||||||||
Total assets
|
$
|
(454,806
|
)
|
$
|
2,340,630
|
$
|
(1,334,217
|
)
|
$
|
278,648
|
$
|
771,925
|
$
|
1,602,180
|
||||||||||
LIABILITIES AND EQUITY:
|
||||||||||||||||||||||||
Homebuilding
|
$
|
2,172
|
$
|
(33
|
)
|
$
|
355,191
|
$
|
11,276
|
$
|
$
|
368,606
|
||||||||||||
Financial services
|
4,231
|
60,015
|
64,246
|
|||||||||||||||||||||
Notes payable
|
1,623,957
|
144
|
1,624,101
|
|||||||||||||||||||||
Income tax payable
|
39,716
|
2,113
|
41,829
|
|||||||||||||||||||||
Stockholders’ (deficit) equity
|
(496,694
|
)
|
716,706
|
(1,695,896
|
)
|
207,265
|
771,925
|
(496,694
|
)
|
|||||||||||||||
Non-controlling interest in consolidated joint ventures
|
92
|
92
|
||||||||||||||||||||||
Total liabilities and equity
|
$
|
(454,806
|
)
|
$
|
2,340,630
|
$
|
(1,334,217
|
)
|
$
|
278,648
|
$
|
771,925
|
$
|
1,602,180
|
Parent
|
Subsidiary Issuer
|
Guarantor Subsidiaries
|
Nonguarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||
Homebuilding
|
$
|
-
|
$
|
(75
|
)
|
$
|
314,161
|
$
|
20,337
|
$
|
(1,238
|
)
|
$
|
333,185
|
||||||||||
Financial services
|
1,696
|
6,817
|
8,513
|
|||||||||||||||||||||
Intercompany charges
|
23,949
|
(18,779
|
)
|
(2,449
|
)
|
(2,721
|
)
|
-
|
||||||||||||||||
Total revenues
|
-
|
23,874
|
297,078
|
24,705
|
(3,959
|
)
|
341,698
|
|||||||||||||||||
Expenses:
|
||||||||||||||||||||||||
Homebuilding
|
2,435
|
9,456
|
316,409
|
15,910
|
18,321
|
362,531
|
||||||||||||||||||
Financial services
|
29
|
1,335
|
3,995
|
4
|
5,363
|
|||||||||||||||||||
Total expenses
|
2,464
|
9,456
|
317,744
|
19,905
|
18,325
|
367,894
|
||||||||||||||||||
Gain on extinguishment of debt
|
27,039
|
27,039
|
||||||||||||||||||||||
Income from unconsolidated joint ventures
|
462
|
1,033
|
1,495
|
|||||||||||||||||||||
Income (loss) before income taxes
|
(2,464
|
)
|
41,457
|
(20,204
|
)
|
5,833
|
(22,284
|
)
|
2,338
|
|||||||||||||||
State and federal income tax (benefit) provision
|
(4,104
|
)
|
4,640
|
536
|
||||||||||||||||||||
Equity in (loss) income of consolidated subsidiaries
|
162
|
(162
|
)
|
-
|
||||||||||||||||||||
Net income (loss)
|
$
|
1,802
|
$
|
41,457
|
$
|
(24,844
|
)
|
$
|
5,833
|
$
|
(22,446
|
)
|
$
|
1,802
|
Parent
|
Subsidiary Issuer
|
Guarantor Subsidiaries
|
Nonguarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||
Homebuilding
|
$
|
3
|
$
|
(103
|
)
|
$
|
249,801
|
$
|
1,332
|
$
|
(1,240
|
)
|
$
|
249,793
|
||||||||||
Financial services
|
1,209
|
4,095
|
5,304
|
|||||||||||||||||||||
Intercompany charges
|
28,299
|
(30,839
|
)
|
(210
|
)
|
2,750
|
-
|
|||||||||||||||||
Total revenues
|
3
|
28,196
|
220,171
|
5,217
|
1,510
|
255,097
|
||||||||||||||||||
Expenses:
|
||||||||||||||||||||||||
Homebuilding
|
1,558
|
40,595
|
277,636
|
405
|
(1,468
|
)
|
318,726
|
|||||||||||||||||
Financial services
|
82
|
1,234
|
3,864
|
(3
|
)
|
5,177
|
||||||||||||||||||
Total expenses
|
1,640
|
40,595
|
278,870
|
4,269
|
(1,471
|
)
|
323,903
|
|||||||||||||||||
Loss on extinguishment of debt
|
(1,644
|
)
|
(1,644
|
)
|
||||||||||||||||||||
Loss from unconsolidated joint ventures
|
(451
|
)
|
(2,781
|
)
|
(3,232
|
)
|
||||||||||||||||||
(Loss) income before income taxes
|
(1,637
|
)
|
(14,043
|
)
|
(59,150
|
)
|
(1,833
|
)
|
2,981
|
(73,682
|
)
|
|||||||||||||
State and federal income tax (benefit) provision
|
(5,087
|
)
|
4,072
|
(1,015
|
)
|
|||||||||||||||||||
Equity in (loss) income of consolidated subsidiaries
|
(76,117
|
)
|
76,117
|
-
|
||||||||||||||||||||
Net (loss) income
|
$
|
(72,667
|
)
|
$
|
(14,043
|
)
|
$
|
(63,222
|
)
|
$
|
(1,833
|
)
|
$
|
79,098
|
$
|
(72,667
|
)
|
Parent
|
Subsidiary Issuer
|
Guarantor Subsidiaries
|
Nonguarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||
Homebuilding
|
$
|
4
|
$
|
(105
|
)
|
$
|
577,467
|
$
|
21,206
|
$
|
(2,478
|
)
|
$
|
596,094
|
||||||||||
Financial services
|
2,995
|
12,208
|
15,203
|
|||||||||||||||||||||
Intercompany charges
|
23,949
|
(31,131
|
)
|
(3,448
|
)
|
10,630
|
-
|
|||||||||||||||||
Total revenues
|
4
|
23,844
|
549,331
|
29,966
|
8,152
|
611,297
|
||||||||||||||||||
Expenses:
|
||||||||||||||||||||||||
Homebuilding
|
4,175
|
24,077
|
601,746
|
14,575
|
24,618
|
669,191
|
||||||||||||||||||
Financial services
|
80
|
2,561
|
7,911
|
(12
|
)
|
10,540
|
||||||||||||||||||
Total expenses
|
4,255
|
24,077
|
604,307
|
22,486
|
24,606
|
679,731
|
||||||||||||||||||
G Gain on extinguishment of
debt
|
51,737
|
51,737
|
||||||||||||||||||||||
I Income from unconsolidated joint ventures
|
491
|
982
|
1,473
|
|||||||||||||||||||||
(L(Loss) income before income taxes
|
(4,251
|
)
|
51,504
|
(54,485
|
)
|
8,462
|
(16,454
|
)
|
(15,224
|
)
|
||||||||||||||
StState and federal income tax
(benefit) provision
|
(8,668
|
)
|
9,907
|
1,239
|
||||||||||||||||||||
E Equity in (loss) income of
consolidated subsidiaries
|
(20,880
|
)
|
(20,880
|
)
|
-
|
|||||||||||||||||||
Net (loss) income
|
$
|
(16,463
|
)
|
$
|
51,504
|
$
|
(64,392
|
)
|
$
|
8,462
|
$
|
4,426
|
$
|
(16,463
|
)
|
Parent
|
Subsidiary Issuer
|
Guarantor Subsidiaries
|
Nonguarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||
Homebuilding
|
$
|
7
|
$
|
(198
|
)
|
$
|
495,709
|
$
|
2,227
|
$
|
(2,479
|
)
|
$
|
495,266
|
||||||||||
Financial services
|
2,541
|
9,857
|
12,398
|
|||||||||||||||||||||
Intercompany charges
|
56,615
|
(66,297
|
)
|
(357
|
)
|
10,039
|
-
|
|||||||||||||||||
Total revenues
|
7
|
56,417
|
431,953
|
11,727
|
7,560
|
507,664
|
||||||||||||||||||
Expenses:
|
||||||||||||||||||||||||
Homebuilding
|
3,102
|
78,985
|
546,610
|
855
|
(158
|
)
|
629,394
|
|||||||||||||||||
Financial services
|
170
|
2,476
|
8,004
|
(3
|
)
|
10,647
|
||||||||||||||||||
Total expenses
|
3,272
|
78,985
|
549,086
|
8,859
|
(161
|
)
|
640,041
|
|||||||||||||||||
G Loss on extinguishment of debt
|
(1,644
|
)
|
(1,644
|
)
|
||||||||||||||||||||
L Loss from unconsolidated joint
ventures
|
(701
|
)
|
(3,523
|
)
|
(4,224
|
)
|
||||||||||||||||||
(L (Loss) income before income taxes
|
(3,265
|
)
|
(24,212
|
)
|
(117,834
|
)
|
(655
|
)
|
7,721
|
(138,245
|
)
|
|||||||||||||
St State and federal income tax
(benefit) provision
|
(10,968
|
)
|
9,532
|
(1,436
|
)
|
|||||||||||||||||||
E Equity in (loss) income of
consolidated subsidiaries
|
(144,512
|
)
|
144,512
|
-
|
||||||||||||||||||||
Net (loss) income
|
$
|
(136,809
|
)
|
$
|
(24,212
|
)
|
$
|
(127,366
|
)
|
$
|
(655
|
)
|
$
|
152,233
|
$
|
(136,809
|
)
|
Parent
|
Subsidiary Issuer
|
Guarantor Subsidiaries
|
Nonguarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||||||||||
Net income (loss)
|
$
|
(16,463 | ) |
$
|
51,504 |
$
|
(64,392 | ) |
$
|
8,462 |
$
|
4,426 |
$
|
(16,463 | ) | |||||||||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities
|
14,463 | (46,947 | ) | 58,917 | (45,410 | ) | (4,426 | ) | (23,403 | ) | ||||||||||||||
Net cash (used in) provided by operating activities
|
(2,000 | ) | 4,557 | (5,475 | ) | (36,948 | ) | - | (39,866 | ) | ||||||||||||||
Net cash (used in) investing activities
|
(1,121 | ) | (1,011 | ) | 28 | (2,104 | ) | |||||||||||||||||
Net cash (used in) provided by financing activities
|
47,147 | (91,885 | ) | 25,585 | 17,400 | (1,753 | ) | |||||||||||||||||
Intercompany investing and financing activities – net
|
(45,147 | ) | 74,560 | (16,820 | ) | (12,593 | ) | - | ||||||||||||||||
Net (decrease) increase in cash
|
- | (13,889 | ) | 2,279 | (32,113 | ) | - | (43,723 | ) | |||||||||||||||
Cash and cash equivalents balance, beginning of period
|
112,122 | (4,989 | ) | 143,607 | 250,740 | |||||||||||||||||||
Cash and cash equivalents balance, end of period
|
$
|
- |
$
|
98,233 |
$
|
(2,710 | ) |
$
|
111,494 |
$
|
- |
$
|
207,017 |
Parent
|
Subsidiary Issuer
|
Guarantor Subsidiaries
|
Nonguarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||||||||||
Net (loss) income
|
$
|
(136,809
|
)
|
$
|
(24,212
|
)
|
$
|
(127,366
|
)
|
$
|
(655
|
)
|
$
|
152,233
|
$
|
(136,809
|
)
|
|||||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
|
86,595
|
(35,201
|
)
|
137,491
|
4,198
|
(152,233
|
)
|
40,850
|
||||||||||||||||
Net cash (used in) provided by operating activities
|
(50,214
|
)
|
(59,413
|
)
|
10,125
|
3,543
|
-
|
(95,959
|
)
|
|||||||||||||||
Net cash (used in) investing activities
|
(909
|
)
|
(455
|
)
|
(1,364
|
)
|
||||||||||||||||||
Net cash (used in) provided by financing activities
|
54,899
|
73,448
|
(4,359
|
)
|
(40,115
|
)
|
83,873
|
|||||||||||||||||
Intercompany investing and financing activities – net
|
(4,695
|
)
|
15,692
|
(513
|
)
|
(10,484
|
)
|
-
|
||||||||||||||||
Net (decrease) increase in cash
|
(10
|
)
|
29,727
|
4,344
|
(47,511
|
)
|
-
|
(13,450
|
)
|
|||||||||||||||
Cash and cash equivalents balance, beginning of period
|
10
|
212,370
|
(12,812
|
)
|
167,612
|
367,180
|
||||||||||||||||||
Cash and cash equivalents balance, end of period
|
$
|
-
|
$
|
242,097
|
$
|
(8,468
|
)
|
$
|
120,101
|
$
|
-
|
$
|
353,730
|
Parent
|
Subsidiary Issuer
|
Units Guarantor Subsidiaries
|
Units Nonguarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
ASSETS:
|
||||||||||||||||||||||||
Homebuilding
|
$
|
10,789
|
$
|
160,822
|
$
|
1,019,930
|
$
|
227,553
|
$
|
-
|
$
|
1,419,094
|
||||||||||||
Financial services
|
9,292
|
89,557
|
98,849
|
|||||||||||||||||||||
Investments in and amounts due to and from consolidated subsidiaries
|
(422,415
|
)
|
2,065,789
|
(2,425,765
|
)
|
(3,471
|
) |
785,862
|
-
|
|||||||||||||||
Total assets
|
$
|
(411,626
|
)
|
$
|
2,226,611
|
$
|
(1,396,543
|
)
|
$
|
313,639
|
$
|
785,862
|
$
|
1,517,943
|
||||||||||
LIABILITIES AND EQUITY:
|
||||||||||||||||||||||||
Homebuilding
|
$
|
3,533
|
$
|
(28
|
)
|
$
|
344,658
|
$
|
22,501
|
$
|
-
|
$
|
370,664
|
|||||||||||
Financial services
|
9,142
|
75,516
|
84,658
|
|||||||||||||||||||||
Notes payable
|
1,474,368
|
102
|
1,474,470
|
|||||||||||||||||||||
Income taxes payable
|
39,856
|
3,079
|
42,935
|
|||||||||||||||||||||
Stockholders’ (deficit) equity
|
(455,015
|
)
|
752,271
|
(1,753,524
|
)
|
215,391
|
785,862
|
(455,015
|
)
|
|||||||||||||||
Non-controlling interest in consolidated joint ventures
|
231
|
231
|
||||||||||||||||||||||
Total liabilities and equity
|
$
|
(411,626
|
)
|
$
|
2,226,611
|
$
|
(1,396,543
|
)
|
$
|
313,639
|
$
|
785,862
|
$
|
1,517,943
|
Parent
|
Subsidiary Issuer
|
Units Guarantor Subsidiaries
|
Units Nonguarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
ASSETS:
|
||||||||||||||||||||||||
Homebuilding
|
$
|
12,756
|
$
|
200,281
|
$
|
1,091,511
|
$
|
212,526
|
$
|
$
|
1,517,074
|
|||||||||||||
Financial services
|
4,537
|
80,569
|
85,106
|
|||||||||||||||||||||
Investments in and amounts due to and from consolidated subsidiaries
|
(467,562
|
)
|
2,140,349
|
(2,430,491
|
)
|
(14,221
|
)
|
771,925
|
-
|
|||||||||||||||
Total assets
|
$
|
(454,806
|
)
|
$
|
2,340,630
|
$
|
(1,334,443
|
)
|
$
|
278,874
|
$
|
771,925
|
$
|
1,602,180
|
||||||||||
LIABILITIES AND EQUITY:
|
||||||||||||||||||||||||
Homebuilding
|
$
|
2,172
|
$
|
(33
|
)
|
$
|
354,528
|
$
|
11,939
|
$
|
$
|
368,606
|
||||||||||||
Financial services
|
4,231
|
60,015
|
64,246
|
|||||||||||||||||||||
Notes payable
|
1,623,957
|
144
|
1,624,101
|
|||||||||||||||||||||
Income tax payable
|
39,716
|
2,113
|
41,829
|
|||||||||||||||||||||
Stockholders’ (deficit) equity
|
(496,694
|
)
|
716,706
|
(1,695,459
|
)
|
206,828
|
771,925
|
(496,694
|
)
|
|||||||||||||||
Non-controlling interest in consolidated joint ventures
|
92
|
92
|
||||||||||||||||||||||
Total liabilities and equity
|
$
|
(454,806
|
)
|
$
|
2,340,630
|
$
|
(1,334,443
|
)
|
$
|
278,874
|
$
|
771,925
|
$
|
1,602,180
|
Parent
|
Subsidiary Issuer
|
Units Guarantor Subsidiaries
|
Units Nonguarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||
Homebuilding
|
$
|
-
|
$
|
(75
|
)
|
$
|
312,814
|
$
|
21,684
|
$
|
(1,238
|
)
|
$
|
333,185
|
||||||||||
Financial services
|
1,696
|
6,817
|
8,513
|
|||||||||||||||||||||
Intercompany charges
|
23,949
|
(18,692
|
)
|
(2,536
|
)
|
(2,721
|
)
|
-
|
||||||||||||||||
Total revenues
|
-
|
23,874
|
295,818
|
25,965
|
(3,959
|
)
|
341,698
|
|||||||||||||||||
Expenses:
|
||||||||||||||||||||||||
Homebuilding
|
2,435
|
9,456
|
315,295
|
17,024
|
18,321
|
362,531
|
||||||||||||||||||
Financial services
|
29
|
1,335
|
3,995
|
4
|
5,363
|
|||||||||||||||||||
Total expenses
|
2,464
|
9,456
|
316,630
|
21,019
|
18,325
|
367,894
|
||||||||||||||||||
Gain on extinguishment of debt
|
27,039
|
27,039
|
||||||||||||||||||||||
Income from unconsolidated joint ventures
|
462
|
1,033
|
1,495
|
|||||||||||||||||||||
Income (loss) before income taxes
|
(2,464
|
)
|
41,457
|
(20,350
|
)
|
5,979
|
(22,284
|
)
|
2,338
|
|||||||||||||||
State and federal income tax (benefit) provision
|
(4,104
|
)
|
4,640
|
536
|
||||||||||||||||||||
Equity in (loss) income of consolidated subsidiaries
|
162
|
(162
|
)
|
-
|
||||||||||||||||||||
Net income (loss)
|
$
|
1,802
|
$
|
41,457
|
$
|
(24,990
|
)
|
$
|
5,979
|
$
|
(22,446
|
)
|
$
|
1,802
|
Parent
|
Subsidiary Issuer
|
Units Guarantor Subsidiaries
|
Units Nonguarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||
Homebuilding
|
$
|
3
|
$
|
(103
|
)
|
$
|
249,801
|
$
|
1,332
|
$
|
(1,240
|
)
|
$
|
249,793
|
||||||||||
Financial services
|
1,209
|
4,095
|
5,304
|
|||||||||||||||||||||
Intercompany charges
|
28,299
|
(30,814
|
)
|
(235
|
)
|
2,750
|
-
|
|||||||||||||||||
Total revenues
|
3
|
28,196
|
220,196
|
5,192
|
1,510
|
255,097
|
||||||||||||||||||
Expenses:
|
||||||||||||||||||||||||
Homebuilding
|
1,558
|
40,595
|
277,616
|
425
|
(1,468
|
)
|
318,726
|
|||||||||||||||||
Financial services
|
82
|
1,234
|
3,864
|
(3
|
)
|
5,177
|
||||||||||||||||||
Total expenses
|
1,640
|
40,595
|
278,850
|
4,289
|
(1,471
|
)
|
323,903
|
|||||||||||||||||
Loss on extinguishment of debt
|
(1,644
|
)
|
(1,644
|
)
|
||||||||||||||||||||
Loss from unconsolidated joint ventures
|
(451
|
)
|
(2,781
|
)
|
(3,232
|
)
|
||||||||||||||||||
(Loss) income before income taxes
|
(1,637
|
)
|
(14,043
|
)
|
(59,105
|
)
|
(1,878
|
)
|
2,981
|
(73,682
|
)
|
|||||||||||||
State and federal income tax (benefit) provision
|
(5,087
|
)
|
4,072
|
(1,015
|
)
|
|||||||||||||||||||
Equity in (loss) income of consolidated subsidiaries
|
(76,117
|
)
|
76,117
|
-
|
||||||||||||||||||||
Net (loss) income
|
$
|
(72,667
|
)
|
$
|
(14,043
|
)
|
$
|
(63,177
|
)
|
$
|
(1,878
|
)
|
$
|
79,098
|
$
|
(72,667
|
)
|
Parent
|
Subsidiary Issuer
|
Units Guarantor Subsidiaries
|
Units Nonguarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||
Homebuilding
|
$
|
4
|
$
|
(105
|
)
|
$
|
576,120
|
$
|
22,553
|
$
|
(2,478
|
)
|
$
|
596,094
|
||||||||||
Financial services
|
2,995
|
12,208
|
15,203
|
|||||||||||||||||||||
Intercompany charges
|
23,949
|
(31,028
|
)
|
(3,551
|
)
|
10,630
|
-
|
|||||||||||||||||
Total revenues
|
4
|
23,844
|
548,087
|
31,210
|
8,152
|
611,297
|
||||||||||||||||||
Expenses:
|
||||||||||||||||||||||||
Homebuilding
|
4,175
|
24,077
|
600,465
|
15,856
|
24,618
|
669,191
|
||||||||||||||||||
Financial services
|
80
|
2,561
|
7,911
|
(12
|
)
|
10,540
|
||||||||||||||||||
Total expenses
|
4,255
|
24,077
|
603,026
|
23,767
|
24,606
|
679,731
|
||||||||||||||||||
G Gain on extinguishment of
debt
|
51,737
|
51,737
|
||||||||||||||||||||||
I Income from unconsolidated joint ventures
|
491
|
982
|
1,473
|
|||||||||||||||||||||
(L(Loss) income before income taxes
|
(4,251
|
)
|
51,504
|
(54,448
|
)
|
8,425
|
(16,454
|
)
|
(15,224
|
)
|
||||||||||||||
StState and federal income tax
(benefit) provision
|
(8,668
|
)
|
9,907
|
1,239
|
||||||||||||||||||||
E Equity in (loss) income of
consolidated subsidiaries
|
(20,880
|
)
|
(20,880
|
)
|
-
|
|||||||||||||||||||
Net (loss) income
|
$
|
(16,463
|
)
|
$
|
51,504
|
$
|
(64,355
|
)
|
$
|
8,425
|
$
|
4,426
|
$
|
(16,463
|
)
|
Parent
|
Subsidiary Issuer
|
Units Guarantor Subsidiaries
|
Units Nonguarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||
Homebuilding
|
$
|
7
|
$
|
(198
|
)
|
$
|
495,709
|
$
|
2,227
|
$
|
(2,479
|
)
|
$
|
495,266
|
||||||||||
Financial services
|
2,541
|
9,857
|
12,398
|
|||||||||||||||||||||
Intercompany charges
|
56,615
|
(66,272
|
)
|
(382
|
)
|
10,039
|
-
|
|||||||||||||||||
Total revenues
|
7
|
56,417
|
431,978
|
11,702
|
7,560
|
507,664
|
||||||||||||||||||
Expenses:
|
||||||||||||||||||||||||
Homebuilding
|
3,102
|
78,985
|
546,590
|
875
|
(158
|
)
|
629,394
|
|||||||||||||||||
Financial services
|
170
|
2,476
|
8,004
|
(3
|
)
|
10,647
|
||||||||||||||||||
Total expenses
|
3,272
|
78,985
|
549,066
|
8,879
|
(161
|
)
|
640,041
|
|||||||||||||||||
G Loss on extinguishment of debt
|
(1,644
|
)
|
(1,644
|
)
|
||||||||||||||||||||
L Loss from unconsolidated joint
ventures
|
(701
|
)
|
(3,523
|
)
|
(4,224
|
)
|
||||||||||||||||||
(L (Loss) income before income taxes
|
(3,265
|
)
|
(24,212
|
)
|
(117,789
|
)
|
(700
|
)
|
7,721
|
(138,245
|
)
|
|||||||||||||
St State and federal income tax
(benefit) provision
|
(10,968
|
)
|
9,532
|
(1,436
|
)
|
|||||||||||||||||||
E Equity in (loss) income of
consolidated subsidiaries
|
(144,512
|
)
|
144,512
|
-
|
||||||||||||||||||||
Net (loss) income
|
$
|
(136,809
|
)
|
$
|
(24,212
|
)
|
$
|
(127,321
|
)
|
$
|
(700
|
)
|
$
|
152,233
|
$
|
(136,809
|
)
|
Parent
|
Subsidiary Issuer
|
Units Guarantor Subsidiaries
|
Units Nonguarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||||||||||
Net income (loss)
|
$
|
(16,463 | ) |
$
|
51,504 |
$
|
(64,355 | ) |
$
|
8,425 |
$
|
4,426 |
$
|
(16,463 | ) | |||||||||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities
|
14,463 | (46,947 | ) | 60,723 | (47,216 | ) | (4,426 | ) | (23,403 | ) | ||||||||||||||
Net cash (used in) provided by operating activities
|
(2,000 | ) | 4,557 | (3,632 | ) | (38,791 | ) | - | (39,866 | ) | ||||||||||||||
Net cash (used in) investing activities
|
(1,121 | ) | (1,011 | ) | 28 | (2,104 | ) | |||||||||||||||||
Net cash (used in) provided by financing activities
|
47,147 | (91,885 | ) | 25,585 | 17,400 | (1,753 | ) | |||||||||||||||||
Intercompany investing and financing activities – net
|
(45,147 | ) | 74,560 | (18,663 | ) | (10,750 | ) | - | ||||||||||||||||
Net (decrease) increase in cash
|
- | (13,889 | ) | 2,279 | (32,113 | ) | - | (43,723 | ) | |||||||||||||||
Cash and cash equivalents balance, beginning of period
|
112,122 | (4,989 | ) | 143,607 | 250,740 | |||||||||||||||||||
Cash and cash equivalents balance, end of period
|
$
|
- |
$
|
98,233 |
$
|
(2,710 | ) |
$
|
111,494 |
$
|
- |
$
|
207,017 |
Parent
|
Subsidiary Issuer
|
Units Guarantor Subsidiaries
|
Units Nonguarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||||||||||
Net (loss) income
|
$
|
(136,809
|
)
|
$
|
(24,212
|
)
|
$
|
(127,321
|
)
|
$
|
(700
|
)
|
$
|
152,233
|
$
|
(136,809
|
)
|
|||||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
|
86,595
|
(35,201
|
)
|
138,094
|
3,595
|
(152,233
|
)
|
40,850
|
||||||||||||||||
Net cash (used in) provided by operating activities
|
(50,214
|
)
|
(59,413
|
)
|
10,773
|
2,895
|
-
|
(95,959
|
)
|
|||||||||||||||
Net cash (used in) investing activities
|
(909
|
)
|
(455
|
)
|
(1,364
|
)
|
||||||||||||||||||
Net cash (used in) provided by financing activities
|
54,899
|
73,448
|
(4,359
|
)
|
(40,115
|
)
|
83,873
|
|||||||||||||||||
Intercompany investing and financing activities – net
|
(4,695
|
)
|
15,692
|
(1,161
|
)
|
(9,836
|
)
|
-
|
||||||||||||||||
Net (decrease) increase in cash
|
(10
|
)
|
29,727
|
4,344
|
(47,511
|
)
|
-
|
(13,450
|
)
|
|||||||||||||||
Cash and cash equivalents balance, beginning of period
|
10
|
212,370
|
(12,812
|
)
|
167,612
|
367,180
|
||||||||||||||||||
Cash and cash equivalents balance, end of period
|
$
|
-
|
$
|
242,097
|
$
|
(8,468
|
)
|
$
|
120,101
|
$
|
-
|
$
|
353,730
|
Note 18
|
6 Months Ended |
---|---|
Apr. 30, 2012
|
|
Schedule of Variable Interest Entities [Table Text Block] |
18. The
Company enters into land and lot option purchase contracts to
procure land or lots for the construction of homes. Under
these contracts, the Company will fund a stated deposit in
consideration for the right, but not the obligation, to
purchase land or lots at a future point in time with
predetermined terms. Under the terms of the option purchase
contracts, many of the option deposits are not refundable at
the Company's discretion. Under the requirements
of ASC 810, certain option purchase contracts may result
in the creation of a variable interest in the entity
(“VIE”) that owns the land parcel under
option.
In
compliance with ASC 810, the Company analyzes its option
purchase contracts to determine whether the corresponding
land sellers are VIEs and, if so, whether the Company is the
primary beneficiary. Although the Company does not have legal
title to the underlying land, ASC 810 requires the
Company to consolidate a VIE if the Company is determined to
be the primary beneficiary. In determining whether it is the
primary beneficiary, the Company considers, among other
things, whether it has the power to direct the activities of
the VIE that most significantly impact the VIE’s
economic performance. Such activities would include, among
other things, determining or limiting the scope or purpose of
the VIE, selling or transferring property owned or controlled
by the VIE, or arranging financing for the VIE. The Company
also considers whether it has the obligation to absorb losses
of the VIE or the right to receive benefits from the VIE. As
a result of its analyses, the Company determined that as of
April 30, 2012 and October 31, 2011 it was not the primary
beneficiary of any VIEs from which it is purchasing land
under option purchase contracts.
We
will continue to secure land and lots using options, some of
which are with VIEs. Including deposits on our unconsolidated
VIEs, at April 30, 2012, we had total cash and letters of
credit deposits amounting to approximately $25.4 million to
purchase land and lots with a total purchase price of $639.0
million. The maximum exposure to loss with respect
to our land and lot options is limited to the deposits,
although some deposits are refundable at our request or
refundable if certain conditions are not met.
|
Note 2
|
6 Months Ended |
---|---|
Apr. 30, 2012
|
|
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] |
2. For
the three and six months ended April 30, 2012, the
Company’s total stock-based compensation expense was
$1.7 million ($1.3 million net of tax) and $2.9 million,
respectively, and $1.7 million and $3.6 million for the three
and six months ended April 30, 2011,
respectively. Included in this total stock-based
compensation expense was the vesting of stock options of $1.6
million ($1.2 million net of tax) and $2.6 million for the
three and six months ended April 30, 2012, respectively, and
$1.3 million and $2.6 million for the three and six months
ended April 30, 2011, respectively.
|