Hovnanian Enterprises Inc. (NYSE:HOV) Q4 2019 Earnings Conference Call - Final Transcript

Dec 05, 2019 • 11:00 am ET


Hovnanian Enterprises Inc. (NYSE:HOV) Q4 2019 Earnings Conference Call - Final Transcript


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Good morning, and thank you for joining us today for Hovnanian Enterprises Fiscal 2019 Fourth Quarter Earnings Conference Call. [Operator Instructions]

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

Jeffrey T. O'Keefe

Thank you, Liz, and thank you all for participating in this morning's call to review the results for our fourth quarter, which ended October 31, 2019. 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 to the company's goals and expectations with respect to its financial results for future financial periods.

Although we believe that our plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, we can give no assurance that such plans, intentions or expectations will be achieved. By their nature, forward-looking statements speak only as of the date they are made, are not guarantees of future performance or results, and are subjects to risks, uncertainties and assumptions that are difficult to predict or quantify.

Therefore, actual results could differ materially and adversely from those forward-looking statements as a result of a variety of factors. Such risks, uncertainties and other factors are described in detail in the sections entitled Risk Factors in Management's Discussion and Analysis, particularly the portion of MD&A entitled Safe Harbor statement in our Annual Report on Form 10-K for the fiscal year ended October 31, 2018, and subsequent filings with the Securities and Exchange Commission. Except as otherwise required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.

Joining me today are Ara Hovnanian, Chairman, President and CEO; Larry Sorsby, Executive Vice President and CFO; Brad O'Connor, Vice President, Chief Accounting Officer and Controller; and David Bachstetter, Vice President, Finance, and Treasurer.

I'll now turn the call over to Ara. Ara, go ahead.

Ara K. Hovnanian

Thanks, Jeff. I am going to review the results of our fourth quarter, and as usual, Larry Sorsby will follow me with more detail. Overall, we are pleased with the results and our quarter was in line with our guidance.

Slide 4 shows the specific metrics we discussed on our last conference call. Our guidance for the gross margin for the fourth quarter was approximately 18.4%. Our actual results were slightly better at 18.9%. Second, we said that our adjusted pre-tax income for the fourth quarter would be enough that we would be profitable for the full year. That implied a pre-tax profit for the fourth quarter in excess of