Hovnanian Enterprises Stock Price, News & Analysis

HOVNANIAN ENTRPRS B NEW (ticker: HOVVB) is associated with Hovnanian Enterprises, Inc., a company that files reports with the U.S. Securities and Exchange Commission and has securities registered under Section 12(b) of the Exchange Act. According to its SEC filings, Hovnanian Enterprises, Inc. has Class A Common Stock that trades under the symbol HOV on the New York Stock Exchange, Preferred Stock Purchase Rights listed on the New York Stock Exchange, and depositary shares representing interests in its 7.625% Series A Preferred Stock that trade under the symbol HOVNP on The Nasdaq Stock Market LLC.

The SEC filings identify the registrant as Hovnanian Enterprises, Inc. and describe multiple classes of securities. Each share of Class A Common Stock includes an associated Preferred Stock Purchase Right. Each Preferred Stock Purchase Right initially represents the right, if it becomes exercisable, to purchase from the company a fractional interest in its Series B Junior Preferred Stock for each share of common stock. The Preferred Stock Purchase Rights are described as not trading separately from the underlying common stock.

Hovnanian Enterprises, Inc. reports its financial and operating results through periodic and current reports filed with the SEC. In a Form 8-K, the company disclosed that it issues earnings press releases that may include various non-GAAP financial measures. These non-GAAP measures include EBIT (earnings before interest expense and income taxes), EBITDA (earnings before interest expense, income taxes, depreciation and amortization), Adjusted EBITDA, Adjusted EBIT, and ratios based on these metrics. The company also discusses homebuilding gross margin before cost of sales interest expense and land charges, homebuilding gross margin percentage on the same basis, adjusted income before income taxes, and an Adjusted Investment metric related to inventories and joint ventures.

According to the company’s explanation in its filing, these non-GAAP measures are presented in addition to the most directly comparable GAAP measures, such as net income (loss), homebuilding gross margin, homebuilding gross margin percentage, income (loss) before income taxes, and total inventories. Management states in the filing that it uses these non-GAAP measures to evaluate operating performance, including metrics such as Adjusted EBIT return on investment (Adjusted EBIT ROI), which compares Adjusted EBIT over a trailing twelve-month period to an average Adjusted Investment over a specified period.

The Form 8-K also indicates that Hovnanian Enterprises, Inc. periodically furnishes earnings press releases as exhibits, such as Exhibit 99.1, which contain reconciliations of non-GAAP measures to the most directly comparable GAAP measures. These press releases are incorporated by reference only when specifically identified in other filings. The company notes that its calculations of non-GAAP measures may differ from those used by other companies.

In another Form 8-K, Hovnanian Enterprises, Inc. describes actions taken by its Board of Directors and Compensation Committee with respect to certain executive officers. The filing notes that the Board appointed individuals to positions such as President and Chief Operating Officer and that the Compensation Committee approved compensation packages for these roles, including base salary levels and target multiples of base salary for awards under the company’s Long-Term Incentive Program. The filing also states that these executives remain eligible to receive other cash and equity awards as determined by the Compensation Committee.

Based on these filings, HOVNANIAN ENTRPRS B NEW and the associated symbol HOVVB relate to the broader capital structure of Hovnanian Enterprises, Inc., which includes common equity, preferred-related instruments, and rights. Investors researching HOVVB may also review information related to HOV and HOVNP, as these are the securities explicitly identified in the company’s SEC filings as trading on national securities exchanges.

Key aspects from SEC filings

• Registrant: Hovnanian Enterprises, Inc., which files reports with the SEC.
• Listed securities: Class A Common Stock (HOV) on the New York Stock Exchange; Preferred Stock Purchase Rights on the New York Stock Exchange; depositary shares representing 7.625% Series A Preferred Stock (HOVNP) on The Nasdaq Stock Market LLC.
• Rights structure: Each Class A Common share includes a Preferred Stock Purchase Right tied to Series B Junior Preferred Stock and these rights do not trade separately from the common stock.
• Non-GAAP metrics: The company discusses EBIT, EBITDA, Adjusted EBITDA, Adjusted EBIT, homebuilding gross margin before certain costs, adjusted income before income taxes, Adjusted Investment, and Adjusted EBIT ROI in its earnings-related disclosures.
• Executive matters: The Board and Compensation Committee address executive appointments and compensation, including base salary and long-term incentive program targets, through formal resolutions described in Form 8-K filings.

How the company presents its performance

In its Form 8-K earnings disclosure, Hovnanian Enterprises, Inc. explains that it uses non-GAAP measures to provide additional perspectives on its operating performance. For example, it references homebuilding gross margin before cost of sales interest expense and land charges as a way to help investors and management evaluate operating results and compare characteristics of homebuilding activities. The company also indicates that measures such as Adjusted Investment and Adjusted EBIT ROI are intended to reflect inventory ownership and operational performance over periods aligned with the time required to build and sell homes.

The filings emphasize that non-GAAP measures should be considered in addition to, and not as a substitute for, GAAP measures. They also note that differences in calculation methods across companies can affect comparability. These explanations are part of the company’s efforts, as reflected in its SEC reports, to describe how it views and communicates its financial condition and results of operations.

Relationship between HOVVB and other symbols

While the SEC filings explicitly reference HOV and HOVNP as trading symbols for Hovnanian Enterprises, Inc., HOVVB is identified here as HOVNANIAN ENTRPRS B NEW. Investors analyzing HOVVB may find it useful to review the company’s SEC filings under Hovnanian Enterprises, Inc. and to consider the disclosures related to the company’s various securities, capital structure elements, and performance metrics described in those filings.