Entering text into the input field will update the search result below

Hovnanian Enterprises, Inc. (HOV) CEO Ara Hovnanian on Q1 2021 Results - Earnings Call Transcript

SA Transcripts profile picture
SA Transcripts

Hovnanian Enterprises, Inc. (NYSE:HOV) Q1 2021 Earnings Conference Call March 2, 2021 11:00 AM ET

Company Participants

Jeffrey O'Keefe - VP, IR

Ara Hovnanian - Chairman, President and CEO

Larry Sorsby - EVP and CFO

Brad O'Connor - SVP, CAO and Treasurer.

Conference Call Participants

Alan Ratner - Zelman & Associates

Alex Barrón - Housing Research

Jordan Hymowitz - Philadelphia Financial


Good morning and thank you for joining us today for Hovnanian Enterprises Fiscal 2021 First Quarter Earnings Conference Call. An archive of the webcast will be available after the completion of the call and run for 12 months. This conference is being recorded for rebroadcast and all participants are currently in a listen-only mode. Management will make some opening remarks about the first quarter results and then open the line for questions.

The company will also be webcasting a slide presentation along with the opening comments from management. The slides are available on the Investors page of the company's website at www.khov.com. Those listeners who would like to follow along should now log on to the website.

I would like to turn the call over to Jeff O'Keefe, Vice President, Investor Relations. Jeff, please go ahead.

Jeffrey O'Keefe

Thank you, Jonathan, and thank you all for participating in this morning's call to review the results for our first quarter which ended January 31, 2021. All statements in this conference call that are not historical facts should be considered as forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such forward-looking statements include, but are not limited to, statements related

Recommended For You

Comments (3)

The valuation of HOV is highly overstated. It’s current market valuation is $485M and they a common stock deficit of $550M, which means the market cap exceeds their book value by &1,035M. Granted they have a huge tax loss carry forward of approximately $1,500M. Essentially HOV would have to earn accumulated pre tax income in excess $4,500M, to realize a material portion of their deferred tax asset. Adding the potential value of their deferred tax asset would still leave HOV with a common stock deficit in excess of $100M, which would leave its common stock book value approximately $585m below its current market valuation.

One also shouldn’t overlook the highly leveraged position of HOV. Hence their percentage of interest expense compared to sales will be considerable higher than its peers. Management suggests that the credit markets will allow for refinancing of its debt at lower interest levels. I think that is highly doubtful, especially considering the historically poor performance of HOV’s management.
HOV is still nonexistent on the radar of most securities firms and their analysts. It will probably take at least four or five more spectacular quarterly results before there are a number of analysts who follow HOV.
Gridbird profile picture
@cynnatalie2000 , Do think they will ever be in a position to reinstate the preferred in next couple years?
To report an error in this transcript, .Contact us to add your company to our coverage or use transcripts in your business. Learn more about Seeking Alpha transcripts here. Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.