Hovnanian Enterprises, Inc. (HOV) saw its loss narrow to $0.14 million in the quarter ended compared with $16.17 million, a year ago.
Revenue during the quarter dropped 4.10 percent to $552.01 million from $575.60 million in the previous year period.
Cost of revenue dropped 5.31 percent or $26.14 million during the quarter to $466.53 million. Gross margin for the quarter expanded 108 basis points over the previous year period to 15.48 percent.
Total expenses were $557.67 million for the quarter, down 5.05 percent or $29.65 million from year-ago period. Operating margin for the quarter stood at negative 1.02 percent as compared to a negative 2.04 percent for the previous year period.
Operating loss for the quarter was $5.66 million, compared with an operating loss of $11.71 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $39.45 million compared with $38.80 million in the prior year period. At the same time, adjusted EBITDA margin improved 41 basis points in the quarter to 7.15 percent from 6.74 percent in the last year period.
"Given the liquidity constraints we faced last year, we are pleased with our results for the first quarter of fiscal 2017. From October 15, 2015 through May 15, 2016, we paid off $320 million of maturing debt, which limited our ability to invest in land during fiscal 2016. As we began fiscal 2017, we were in a much improved liquidity position with a beginning cash balance of $340 million. We used $31 million to retire $39 million face value of debt maturing in 2017 and 2019. Furthermore, we spent $190 million on land and land development in the first quarter of fiscal 2017, which was more than we had spent in any quarter last year. As a result, after reporting decreases in owned lots last year, during the first quarter the number of owned lots increased sequentially," stated Ara K. Hovnanian, chairman of the Board, president and chief executive officer.
Real estate inventory stood at $1,293.43 million as on Jan. 31, 2017. Net receivables stood at $329.30 million as on Jan. 31, 2017.
Total assets stood at $2,145.30million as on Jan. 31, 2017. On the other hand, total liabilities were at $2,273.58 million as on Jan. 31, 2017.
Return on assets was at 0.01 percent in the quarter.
Total debt was at $1,707.20 million as on Jan. 31, 2017.
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