Hovnanian lower after FQ3 report

• FQ3 income before taxes, excluding land-related charges of $2.7M vs. a loss of $8.9M a year ago. Net loss of $500K or $0.00 per share vs. loss of $7.7M and $0.05 one year ago.
• Adjusted EBITDA of $56.3M vs. $32.2M a year ago.
• Total revenue of $716.9M up 32.6% Y/Y.
• SG&A expense of $66.3M or 9.3% of revenue a 330 basis point improvement from last year.
• Consolidated active selling communities of 206 down 15.5% Y/Y, in part thanks to the sale of ten communities in Minneapolis and Raleigh.
• Net contracts per active selling community of 8.4 up 13.5% Y/Y. Dollar value of $593M down 4.3%. Number of net contracts of 1,467 down 4.3%.
• Backlog dollar value of $1.48B up 7.7%; number of 3,232 down 1.3%.
• Deliveries of 1,574 homes up 11.8% Y/Y.
• Cancellation rate of 22% up 200 basis points.
• Noting progress in FQ3, CEO Ara Hovnanian says there is still more work to do. The company expects FQ4 income before taxes, excluding land-related charges, and other non-recurring items to be between $32M and $42M.
• Conference call at 11 ET
• Previously: Hovnanian EPS of $0.00 (Sept. 9)
• HOV -5.55%