Company: HOVVB
Filing Date: 2025-02-28
Form Type: 10-Q
Source: 0001753926-25-000367
Chunk: 10

Company: HOVNANIAN ENTERPRISES INC
Filing Date: 2025-02-28
Form: 10-Q
Item: Part I, Item 2
Chunk 10
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 total liquidity of $222.4 million, including $94.3 million of homebuilding cash and cash equivalents and $125.0 million of borrowing capacity under our senior secured revolving credit facility as of January 31, 2025. 

Information on our operating results for the three months ended January 31, 2025 are as follows:

● Sale of homes revenues increased to $646.9 million for the three months ended January 31, 2025 from $573.6 million for the three months ended January 31, 2024. There was an 18.0% increase in the number of home deliveries for the three months ended January 31, 2025 compared to the prior year period, partially offset by a decrease in average prices of 4.4% for the three months ended January 31, 2025 compared to the prior year period. The decrease in average price was the result of the geographic and community mix of our deliveries. 

● Gross margin dollars decreased 6.3% for the three months ended January 31, 2025 as compared to the same period of the prior year, while gross margin percentage decreased to 15.2% for the three months ended January 31, 2025 from 18.3% for the three months ended January 31, 2024. Gross margin percentage, before cost of sales interest expense and land charges, decreased to 18.3% for the three months ended January 31, 2025 from 21.8% for the three months ended January 31, 2024. The decrease in gross margin percentage was primarily due to increased use of incentives and concessions, including additional mortgage interest rate buydowns, to make our homes more affordable. In the current homebuilding
environment, we remain focused on driving financial performance by increasing
our sales pace versus achieving a higher gross margin. 

● Selling, general and administrative costs (including corporate general and administrative expenses) ("Total SGA") was $86.9 million, or 12.9% of total revenues, in the three months ended January 31, 2025 compared with $86.1 million, or 14.5% of total revenues, in the three months ended January 31, 2024. The decrease in Total SGA percentage is primarily due to the increase in sale of homes revenue for the period.

● Income before taxes increased to $39.9 million for