On March 8, Hovnanian Enterprise
- Revenues decreased by 8.8% to $1.2 billion, as a result of declines in the number of homes delivered and net contracts.
- Contract backlog fell by almost 35% to 7,800 homes.
- As previously announced, the company took significant charges related to its operations in the Fort Myers-Cape Coral area of Southwest Florida.
-
Motley Fool CAPS players are still bearish on homebuilders. They've given Hovnanian, Lennar
(NYSE:LEM) and Pulte(NYSE:PHM) lowly one-star ratings.
(Figures in millions, except per-share data.)
Income Statement Highlights
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
Sales |
$1,165.8 |
$1,278.0 |
(8.8%) |
Net Profit |
($57.3) |
$81.4 |
N/A |
EPS |
($0.91) |
$1.25 |
N/A |
Diluted Shares |
62.9 |
65.4 |
(3.8%) |
Get back to basics with the income statement.
Margin Checkup
Q1 2007 |
Q1 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
14.0% |
25.3% |
(11.3) |
Operating Margin |
(5.7%) |
10.6% |
(16.3) |
Net Margin |
(4.9%) |
6.4% |
(11.3) |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$9.3 |
$56.9 |
(83.6%) |
Accounts Rec. |
$86.4 |
$84.3 |
2.5% |
Inventory |
$4,133.7 |
$3,886.4 |
6.4% |
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Accounts Payable |
$429.8 |
$488.8 |
(12.1%) |
Long-Term Debt |
$2,303.1 |
$1,738.7 |
32.5% |
The balance sheet reflects the company's health.
Cash Flow Highlights
When it comes to cash flow data, it seems no one's home at Hovnavian. For shame!
Free cash flow is a Fool's best friend.
Related Foolishness:
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