Company: HOVVB
Filing Date: 2025-05-20
Form Type: 8-K
Source: 0001753926-25-000870
Chunk: 2

Company: HOVNANIAN ENTERPRISES INC
Filing Date: 2025-05-20
Form: 8-K
Item: Item 2.02
Chunk 2
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 homebuilders, have been significant and,
as such, have made financial analysis of the Company’s industry more difficult.
Homebuilding metrics excluding land charges, as well as interest amortized to
cost of sales, and other similar presentations prepared by analysts and other
companies are frequently used to assist investors in understanding and
comparing the operating characteristics of homebuilding activities by
eliminating many of the differences in companies’ respective levels of
impairments and levels of debt. Homebuilding gross margin, before cost of sales
interest expense and land charges, should be considered in addition to, but not
as an alternative to, homebuilding gross margin determined in accordance with
GAAP as an indicator of operating performance. Additionally, the Company’s
calculation of homebuilding gross margin, before cost of sales interest expense
and land charges, may be different than the calculation used by other
companies, and, therefore, comparability may be affected.

Management believes adjusted income before
taxes to be relevant and useful information because it provides a better metric
of the Company’s operating performance. Adjusted income before taxes should be
considered in addition to, but not as a substitute for, income before income
taxes, net income and other measures of financial performance prepared in
accordance with accounting principles generally accepted in the United States
that are presented on the financial statements included in the Company’s reports
filed with the Securities and Exchange Commission. Additionally, the Company’s
calculation of adjusted income before taxes may be different than the
calculation used by other companies, and, therefore, comparability may be
affected.

Management believes Adjusted Investment to be
relevant and useful information because it more accurately reflects inventory
owned (whether directly or through joint ventures) by the Company and excludes
inventory that is off-balance sheet in nature, such as inventory subject to
land banking transactions. Adjusted
Investment should be considered in addition to, but not as a substitute for,
total inventories prepared in accordance with accounting principles generally
accepted in the United States that are presented on the financial statements
included in the Company’s reports filed with the Securities and Exchange
Commission. Additionally, the Company’s calculation of Adjusted Investment
may be different than the calculation used by other companies, and, therefore,
comparability may be affected.

Management believes Adjusted
EBIT ROI to be relevant and useful information because it is a measure of
operational performance irrespective of the capital structure of the Company
and as calculated