Hovnanian Enterprises Inc (HOVNP) 2025 Q2 法說會逐字稿

Good morning and thank you for joining us today for Hovnanian Enterprise fiscal 2025 second-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.

早安，感謝您今天參加 Hovnanian Enterprise 2025 財年第二季財報電話會議。網路廣播的存檔將在通話結束後提供，並保存 12 個月。本次會議正在錄製重播，所有參與者目前處於只聽模式。

Management will make some opening remarks about the second-quarter results and then open the line for questions. The company will also be webcasting a slide presentation along with the opening remarks 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 will now log on to the website.

管理層將就第二季業績發表一些開場白，然後開放提問環節。該公司還將透過網路直播幻燈片演示以及管理層的開場白。幻燈片可在公司網站 www.khov.com 的投資者頁面上找到。想要收聽的聽眾現在可以登入該網站。

I'll now turn the call over to Jeff O'Kefe, Vice President of Investor Relations. Jeff, please go ahead.

現在我將把電話轉給投資者關係副總裁 Jeff O'Kefe。傑夫，請繼續。

Thank you Marvin, and thank you all for participating in this morning's call to review the results for our second quarter.

謝謝馬文，也謝謝大家參加今天上午的電話會議回顧我們第二季的業績。

All statements on 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.

本次電話會議上所有非歷史事實的陳述均應被視為《1995 年私人證券訴訟改革法》安全港條款所定義的前瞻性陳述。此類陳述涉及已知和未知的風險、不確定性和其他因素，可能導致本公司的實際結果、績效或成就與前瞻性陳述表達或暗示的任何未來結果、績效或成就有重大差異。

Such forward-looking statements include but are not limited to statements related to the company's goals and expectations with respect to 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.

此類前瞻性陳述包括但不限於與公司未來財務期間的財務結果目標和預期相關的陳述。儘管我們相信這些前瞻性陳述所反映或暗示的計劃、意圖和期望是合理的，但我們不能保證這些計劃、意圖或期望能夠實現。

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 subject 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 and Management 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 30, 2024, and subsequent filings with the Securities and Exchange Commission. Except as otherwise required by applicable security laws, we undertake no obligation to publicly update r review any forward-looking statements whether as a result of new information, future events, changed circumstances or any other reasons.

就其性質而言，前瞻性陳述僅代表其作出之日的觀點，不保證未來的業績或結果，並且受難以預測或量化的風險、不確定性和假設的影響。因此，由於各種因素，實際結果可能與這些前瞻性陳述有重大不利差異。此類風險、不確定性和其他因素在題為“風險因素”和“管理層討論與分析”的章節中有詳細描述，特別是我們截至 2024 年 10 月 30 日的財政年度 10-K 表年度報告以及隨後向美國證券交易委員會提交的文件中題為“安全港聲明”的 MD&A 部分。除非適用的安全法另有要求，否則我們不承擔因新資訊、未來事件、情況變更或任何其他原因而公開更新或審查任何前瞻性聲明的義務。

Joining me today are Ara Hovnanian, Chairman, President and CEO; Brad O'Connor, CFO; David Mitrisin, Vice President, Corporate Controller; and Paul Eberly, Vice President, Finance and Treasurer.

今天與我一起出席的還有董事長、總裁兼執行長 Ara Hovnanian；財務長 Brad O'Connor； David Mitrisin，副總裁、公司財務長；以及財務副總裁兼財務主管 Paul Eberly。

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

啊，我現在把電話轉給你。

Thanks, Jeff. I'm going to review our second-quarter results, and I'll also comment on the current housing environment. Brad will follow me with more details as usual, and of course, we'll open it up to Q&A afterwards.

謝謝，傑夫。我將回顧我們第二季的業績，同時也將對當前的住房環境發表評論。布拉德將像往常一樣向我介紹更多細節，當然，之後我們將開放問答環節。

Let me begin on slide 5. Here, we show our second-quarter guidance compared to our actual results. Overall, we are satisfied that everything except gross margin was within or better than the guidance range that we provided. Needless to say, there was a lot of political and economic uncertainty during the quarter.

我從第 5 張投影片開始。這裡，我們展示了第二季的指導與實際結果的比較。總體而言，我們感到滿意，除毛利率外，其他所有指標均在我們提供的指導範圍內或更好。毋庸置疑，本季存在著許多政治和經濟不確定性。

Starting at the top of the slide, revenues were $686 million which was closer to the low end of our guidance. This was primarily due to the mix of deliveries with some higher price home deliveries slipping into future quarters. Our adjusted gross margin was 17.3% for the quarter, which was just below the low end of the guidance range that we gave. If incentives had remained at the then current levels, which averaged 9.7% in the first quarter, then we would have been around the midpoint of the guidance range.

從幻燈片頂部開始，收入為 6.86 億美元，接近我們預期的低端。這主要是由於送貨種類繁多，且部分價格較高的送貨上門服務將延至未來幾季。本季我們的調整後毛利率為 17.3%，略低於我們給出的指導範圍的低端。如果激勵措施維持在當時的水準（第一季平均為 9.7%），那麼我們的預期就會達到指導範圍的中點左右。

However, as the quarter went on, we had to increase incentives. For the second quarter, incentives increased 80 basis points sequentially to 10.5%. Our SG&A ratio was 11.7%, which was near the midpoint of the guidance we gave. Our income from unconsolidated joint ventures was $9 million, which was at the high end of the guidance that we gave. Adjusted EBITDA was $61 million for the quarter, which is slightly above the high end of the guidance range that we gave. And finally, our adjusted pre-tax income was $29 million, which was near the high end of the range that we gave. Again, given the challenging operating environment, we're satisfied with these results.

然而，隨著季度的推移，我們不得不增加激勵措施。第二季度，激勵措施較上季增加 80 個基點，達到 10.5%。我們的銷售、一般及行政費用比率為 11.7%，接近我們給出的指導的中間值。我們從非合併合資企業獲得的收入為 900 萬美元，達到了我們給出的指導值的高端。本季調整後的 EBITDA 為 6,100 萬美元，略高於我們給出的指導範圍的高端。最後，我們的調整後稅前收入為 2900 萬美元，接近我們給出的範圍的高端。再次，考慮到充滿挑戰的營運環境，我們對這些結果感到滿意。

On slide 6, we show our second-quarter results compared to last year's second quarter. Keep in mind that last year was a very strong second quarter from both a profitability and sales pace perspective. In today's operating environment, it's no surprise that all of these metrics experience year-over-year declines.

在投影片 6 上，我們展示了第二季業績與去年第二季的比較。請記住，從獲利能力和銷售速度的角度來看，去年第二季的表現都非常強勁。在當今的營運環境下，所有這些指標都逐年下降也就不足為奇了。

Starting in the upper left-hand portion of the slide, you can see that our total revenues were down year over year despite flat deliveries. The year-over-year decline in revenues was primarily due to lower average sales prices. Moving across the top to gross margin, our gross margin was down year by year, mainly due to increased incentives, which is somewhat related to the greater focus on pace versus price. I'll elaborate more on that shortly.

從幻燈片的左上角開始，您可以看到，儘管交付量持平，但我們的總收入卻同比下降。收入年減主要是由於平均銷售價格下降。從毛利率來看，我們的毛利率逐年下降，主要是因為激勵措施的增加，這與我們更重視速度而不是價格有關。我稍後會對此進行更詳細的說明。

During this year's second quarter, incentives were 10.5% of the average sales price. This is up 240 basis points from a year ago, 80 basis points from the first quarter of 2025, and 750 basis points higher than fiscal '22, which was prior to the mortgage rate spike impacting deliveries. Other than the extraordinary cost to buy down mortgages to make our homes affordable, our gross margins would have been very healthy.

今年第二季度，激勵措施佔平均銷售價格的 10.5%。這比去年同期高出 240 個基點，比 2025 年第一季高出 80 個基點，比 22 財年（抵押貸款利率飆升影響交付之前）高出 750 個基點。除了為了降低房價而支付的巨額抵押貸款成本外，我們的毛利率本來非常可觀。

Moving to the bottom left, you can see that our total SG&A as a percentage of total revenue, increased slightly. This was primarily due to the growth in our community count, and in the bottom right-hand portion of the slide, you can see the negative impact that all of these metrics had on our year-over-year profitability.

移到左下角，您可以看到我們的銷售、一般及行政費用總額佔總收入的百分比略有增加。這主要是由於我們社區數量的增長，在幻燈片的右下角，您可以看到所有這些指標對我們的同比盈利能力產生的負面影響。

If you turn to slide 7, you can see that contracts for the second quarter, including domestic unconsolidated joint ventures, decreases 7% year over year.

如果您翻到第 7 張投影片，您會看到第二季的合約（包括國內未合併合資企業）年減了 7%。

Once again there were considerable differences in monthly sales, which you can see on slide 8. Contracts were down 17% in February, then bounced back with a 3% increase in March, and this was followed by a 9% decline in April. On slide 9, you can see that the most recent three months continued a trend of choppiness. And frankly, this volatility is not unique to this year as we discussed before.

月銷售額再次出現顯著差異，您可以在第 8 張投影片上看到。2 月合約數量下降了 17%，3 月反彈並上漲了 3%，4 月又下降了 9%。在投影片 9 上，您可以看到最近三個月繼續呈現波動趨勢。坦白說，正如我們之前討論過的，這種波動並不是今年獨有的。

If you turn to slide 10, you can see that contracts per community were lower this year compared to the second quarters of the past several years, but at 11.2 contracts per community, our contract pace compares well to pre-COVID levels and is higher than our quarterly average of 10.3% for the second quarter since 2008.

如果您翻到第 10 張投影片，您會發現今年每個社區的合約數量與過去幾年的第二季度相比有所下降，但每個社區的合約數量為 11.2 份，我們的合約速度與 COVID 之前的水平相比表現良好，並且高於自 2008 年以來第二季度的季度平均值 10.3%。

On slide 11, we give more granularity and show the trend of monthly contracts per community compared to the same month a year ago. Here, you can see that this year's sales pace was lower than last year. However, you can also see the current sales pace in March and April was higher than the average pace for those months since '08, and even February was not that far off from the monthly average pace since.

在幻燈片 11 中，我們提供了更詳細的信息，並展示了與去年同期相比每個社區的月度合約趨勢。在這裡，您可以看到今年的銷售速度低於去年。然而，你也可以看到，3月和4月的當前銷售速度高於自2008年以來這兩個月的平均速度，甚至2月的銷售速度也與自2008年以來的月平均速度相差不遠。

Turn into slide 12, we show contracts per community as if we had a March 31 quarter end. This way we can compare our results to our peers that report contracts per community on a calendar quarter end. At 10.8 contracts per community, our sales pace is the third highest among the public builders.

翻到第 12 張幻燈片，我們展示了每個社區的合同，就好像我們有一個 3 月 31 日的季度末一樣。這樣，我們就可以將我們的結果與在日曆季度結束時報告每個社區的合約的同行進行比較。我們的銷售速度在每個社區有 10.8 份合同，在公共建築商中排名第三。

On slide 13, you can see that year-over-year contracts per community declined for all but one of our peers shown on this slide. We are right around the median. Again, this was as if our quarter ended in March so that we could compare our results to these other companies. What we're trying to illustrate in these last two slides is that even though the spring selling season has not played out the way everyone had hoped, our focus on pace over price resulted in an above average number of contracts per community compared to our peers.

在第 13 張投影片上，您可以看到，除一張投影片上顯示的同儕社群外，其他所有社群的每個社群的合約數量同比都有所下降。我們正處於中間值附近。再次，這就好像我們的季度在三月結束一樣，以便我們可以將我們的結果與其他公司進行比較。在最後兩張幻燈片中，我們試圖說明的是，儘管春季銷售季節並沒有像大家希望的那樣發展，但我們對速度而非價格的關注導致每個社區的合約數量高於同行的平均水平。

Given the monthly volatility we've experienced, we don't get overly excited or concerned about the performance in any one month. We continue to monitor our sales on a community-by-community basis and make adjustments in real time based on current sales data. We remain confident in both our strategy and the long-term fundamentals of the new home market.

考慮到我們所經歷的每月波動，我們不會對任何一個月的表現感到過度興奮或擔憂。我們將繼續監控每個社區的銷售情況，並根據當前銷售數據即時進行調整。我們對我們的策略和新房市場的長期基本面仍然充滿信心。

On slide 14, you can see that a considerable percentage -- for a considerable percentage of our deliveries, our home buyers continue to utilize mortgage rate buydowns. The percentage of home buyers using buydowns in this year's second quarter was 75%. The buydown usage in our deliveries indicates that buyers continue to rely on these rate buydowns to combat affordability at the current mortgage rates.

在第 14 張投影片上，您可以看到，在我們交付的相當大比例的房屋中，我們的購屋者繼續利用抵押貸款利率買斷。今年第二季度，採用買斷方式的購屋者比例為 75%。我們交付的買斷使用情況表明，買家繼續依賴這些利率買斷來應對當前抵押貸款利率下的承受能力。

Given the persistently high mortgage rate environment, we assume buydowns will remain at similar levels going forward. In order to meet home buyers' desires to use cost effective mortgage rate buydowns, we're intentionally operating at an elevated level of quick move-in homes, or QMIs as we call them, so that we can offer affordable mortgage rate buy downs in the near term and give more certainty in an uncertain market.

鑑於抵押貸款利率持續居高不下，我們預計未來買斷率將維持在類似水準。為了滿足購屋者使用具有成本效益的抵押貸款利率買斷的願望，我們有意提高快速入住房屋（我們稱之為 QMI）的水平，以便我們可以在短期內提供可負擔的抵押貸款利率買斷，並在不確定的市場中提供更多確定性。

On slide 15, we show that we had 8.6 QMIs per community at the end of the second quarter, which is down sequentially from 9.3% in the first quarter of '25. We define QMIs as any unsold home where we've begun framing.

在投影片 15 上，我們顯示第二季末每個社區的 QMI 為 8.6 個，比 25 年第一季的 9.3% 較上季下降。我們將 QMI 定義為任何已開始建造框架的未售出房屋。

In the second quarter of '25, QMI sales were 79% of our total sales. This was the highest quarter since we started reporting this number 11 quarters ago and significantly higher than the previous highest quarter, which was 72% in the fourth quarter of '24. Historically, that percentage was 40%, about half. Obviously, the demand for QMIs remains high, so we're comfortable with the current level of QMIs.

2025 年第二季度，QMI 的銷售額占我們總銷售額的 79%。這是我們 11 個季度前開始報告該數字以來最高的一個季度，並且明顯高於之前的最高季度，即 2024 年第四季度的 72%。從歷史上看，這個比例是40%，大約是一半。顯然，對 QMI 的需求仍然很高，因此我們對目前的 QMI 水準感到滿意。

We ended the second quarter with 304 finished QMIs on a per community basis that puts us at 2.4 finished QMIs per community. That's down from 2.6 finished QMIs at the end of the first quarter. We've cut back on the number of homes we've started to match the current sales pace. Sequentially, when compared to the first quarter of '25, the total number of QMIs decreased by 8%, similar to the drop in our sales pace, and the number of our finished QMIs decreased by 5%.

截至第二季度，我們每個社區已完成 304 個 QMI，即每個社區已完成 2.4 個 QMI。這一數字低於第一季末的 2.6 個 QMI。為了跟上目前的銷售速度，我們減少了已開工的房屋數量。與 2025 年第一季相比，QMI 總數下降了 8%，與我們的銷售速度下降類似，而我們完成的 QMI 數量下降了 5%。

The focus on quick move-in homes results in more contracts that are signed and delivered in the same quarter. That leads to lower levels of backlog at quarter ends, but a higher backlog conversion. During the second quarter of '25, 39% of our homes delivered in the quarter were contracted in the same quarter. This obviously makes it more challenging when providing guidance for the next quarter. It also resulted in a high backlog conversion ratio of 80%, which is significantly higher than the second quarter average backlog conversion ratio of 58% since '98. We continue to manage our QMIs on a community level and are highly focused on matching our QMI start space with our QMI sales space.

對快速入住房屋的關注導致同一季度簽署和交付的合約更多。這會導致季度末的積壓水平降低，但積壓轉換率更高。2025 年第二季度，我們交付的房屋中有 39% 是在同一季度簽訂的合約。這顯然使得提供下一季的指導變得更具挑戰性。這也使得積壓訂單轉換率高達 80%，明顯高於 1998 年以來第二季 58% 的平均積壓訂單轉換率。我們繼續在社區層級管理我們的 QMI，並高度專注於將我們的 QMI 起始空間與我們的 QMI 銷售空間相匹配。

If you move to slide 16, you can see that even with higher mortgage rates and a slower sales pace, we're still able to raise net prices in 31% of our communities during the second quarter. 63% of the communities with price increases were in Delaware, Maryland, New Jersey, North Carolina, Virginia, and West Virginia, which are our better performing markets. While the sales environment has been difficult, we've been focusing on pace versus price, but we're still raising prices and lowering incentives when our sales pace warrants it.

如果您翻到第 16 張投影片，您會看到，即使抵押貸款利率上升且銷售速度放緩，我們仍然能夠在第二季提高 31% 社區的淨價格。 63% 價格上漲的社區位於德拉瓦州、馬裡蘭州、新澤西州、北卡羅來納州、維吉尼亞州和西維吉尼亞州，這些是我們表現較好的市場。儘管銷售環境很困難，我們一直專注於速度而不是價格，但當我們的銷售速度允許時，我們仍然會提高價格並降低激勵措施。

Economic uncertainty, high mortgage rates, affordability, and low consumer confidence have caused many consumers to delay purchasing a new home. To increase our sales pace and make our homes affordable, we continue to offer mortgage rate buydowns. While our contract pace per community is consistent with historical averages, it remains lower than in the recent months.

經濟不確定性、高抵押貸款利率、負擔能力以及低消費者信心導致許多消費者推遲購買新房屋。為了加快銷售速度並使我們的房屋價格更實惠，我們繼續提供抵押貸款利率降低服務。雖然我們每個社區的合約速度與歷史平均水平一致，但仍低於最近幾個月的水平。

Further, our gross margins, ignoring the mortgage rate incentives are actually quite strong. However, offering mortgage rate buydowns is expensive and it certainly has impacted our gross margins in the current quarters. We've reviewed all land transactions to ensure that they remain economically viable. This did result in walking away from a few land option positions during due diligence that no longer met our return hurdles.

此外，即使不考慮抵押貸款利率激勵，我們的毛利率實際上也相當高。然而，提供抵押貸款利率降低的成本很高，而且肯定會影響我們本季的毛利率。我們審查了所有土地交易，以確保它們仍然具有經濟可行性。這確實導致我們在盡職調查期間放棄了一些不再符合回報障礙的土地選擇權部位。

Slide 17 illustrates the vintage of our land position. The percentage above each bar shows the percentage of lots controlled in each year compared to the total. The percentage below the bar shows the incentives for closing that year. On this slide, you can see that 74% of the land was originally controlled when we were using an elevated level of incentives to underwrite the land.

幻燈片 17 展示了我們的土地地位的年份。每個條形上方的百分比顯示每年控制的批次佔總數的百分比。條形下方的百分比顯示了該年結束的激勵措施。在這張投影片上，你可以看到，當我們使用高水準的激勵措施來承保土地時，74％的土地最初是被控制的。

These lots are typically performing near our pro forma metrics. As time has gone on, particularly in regard with land that was controlled in fiscal '25, we and the rest of the industry have been using more and more incentives, and the lots controlled then underwrote with a higher percentage of incentives. As far as underperformance goes, it's our 22 vintage that is the most impacted as land prices had increased, but incentives had not yet fully kicked in.

這些地塊的表現通常接近我們的預測指標。隨著時間的推移，特別是在 25 財年控制的土地方面，我們和業內其他公司一直在使用越來越多的激勵措施，並且當時控制的地塊承保的激勵比例也更高。就表現不佳而言，我們 22 年份受到的影響最大，因為土地價格上漲，但激勵措施尚未完全發揮作用。

Some of the 21 vintage land primarily on the West Coast can also be margin challenged, but we're burning through the difficult vintages and replacing them with more current vintages with better returns. In this more challenging environment, we are working with some of our land sellers currently under option agreements to find win-win solutions in a difficult market where we both share a bit of the pain in a slow market.

主要位於西海岸的 21 個葡萄酒產區中，有些也面臨利潤挑戰，但我們正在度過困難的葡萄酒產區，並用回報更好的當前葡萄酒產區取而代之。在這個更具挑戰性的環境中，我們正在與一些目前簽訂了期權協議的土地賣家合作，在困難的市場中找到雙贏的解決方案，在低迷的市場中，我們雙方都承受著一些痛苦。

We've made a strategic decision to burn through the less profitable land parcels at lower gross margins to clear the way for recent land acquisitions which meet our target return metrics. Fortunately, we're finding plenty of new land opportunities that meet our return hurdles even with the current level of incentives and sales pace. While we're satisfied with our performance given the difficult environment, we expect that we will return to more favorable performance metrics as we replace certain land positions with newer land positions that we're finding today.

我們做出了一項策略決策，即以較低的毛利率消耗掉利潤較低的土地，為近期符合我們目標回報指標的土地收購掃清道路。幸運的是，即使在當前的激勵水平和銷售速度下，我們也發現了大量能夠滿足我們回報障礙的新土地機會。雖然考慮到困難的環境，我們對自己的表現感到滿意，但我們預計，隨著我們用今天找到的較新的土地位置取代某些土地位置，我們將恢復到更有利的績效指標。

Finally, as an update to our Saudi Arabian joint venture last week, we signed a memorandum of understanding with the Ministry of Housing in Saudi Arabia. This will expand our activities and our partnership in Saudi Arabia, increasing housing for a growing population of young middle-class families.

最後，作為我們上週沙烏地阿拉伯合資企業的最新消息，我們與沙烏地阿拉伯住房部簽署了一份諒解備忘錄。這將擴大我們在沙烏地阿拉伯的活動和合作夥伴關係，為不斷增長的年輕中產階級家庭提供住房。

I'll now turn it over to Brad O'Connor, our Chief Financial Officer.

現在我將把發言權交給我們的財務長布拉德‧奧康納 (Brad O'Connor)。

Thank you, Ara.

謝謝你，阿拉。

Let me start with slide 18 where we show the progress we've made in reducing our base construction cost per square foot. Here, we show that from the first quarter of fiscal '23, when we first started attacking costs from our suppliers and trade partners until the second quarter of '25, we have lowered our base construction cost per square foot by 7%. Much of the progress was made in the first few quarters of this analysis, and we have been holding fairly steady since then. As the market has softened, we are digging in and looking for additional savings.

我從第 18 張投影片開始，其中展示了我們在降低每平方英尺基礎建築成本方面取得的進展。這裡我們顯示，從 23 財年第一季（我們首次開始攻擊供應商和貿易夥伴的成本）到 25 年第二季度，我們已將每平方英尺的基本建築成本降低了 7%。大部分進展是在本次分析的前幾季取得的，自那時起我們一直保持相當穩定。隨著市場疲軟，我們正在深入挖掘並尋求額外的節省。

Turning to slide 19, you can see that we ended the quarter with a total of 148 open for sale communities, a 12% increase from last year's second quarter. 125 of those communities were wholly owned. During the second quarter, we opened 11 new wholly owned communities and sold out of 11 wholly owned communities. Additionally, we had 23 domestic unconsolidated joint venture communities at the end of the second quarter.

翻到第 19 張投影片，您可以看到本季結束時我們共有 148 個待售社區，比去年第二季增加了 12%。其中 125 個社區為全資所有。第二季度，我們新開設了11個全資社區，並已售出11個全資社區。此外，截至第二季末，我們擁有 23 個國內非合併合資社區。

We opened 3 new unconsolidated joint venture communities and closed 3 during the quarter. We continue to experience delays in opening new communities, primarily related to utility hookups and permitting delays throughout the country. We expect community count to continue to grow further in fiscal '25.

本季度，我們開設了 3 個新的非合併合資社區，並關閉了 3 個。我們在開設新社區方面繼續遇到延誤，主要與全國各地的公用設施連接和許可延誤有關。我們預計 25 財年社區數量將持續進一步成長。

The leading indicator for further community account growth is shown on slide 20. We ended the quarter with 42,440 controlled lots, which equates to a 7.7 year supply of controlled lots. Our lot count increased 15% year over year. If you include lots from our unconsolidated joint ventures, we now control 45,582 lots. We added 3,000 lots in 46 future communities during the second quarter. Our land teams are actively engaging with land sellers, negotiating for new land parcels that meet our underwriting standards, even with high incentives and the current sales pace.

幻燈片 20 顯示了社群帳戶進一步成長的領先指標。本季結束時，我們的受控批次數量為 42,440 個，相當於 7.7 年的受控批次供應量。我們的批次數量年增了 15%。如果算上我們未合併合資企業的地塊，我們現在控制著 45,582 個地塊。我們在第二季在 46 個未來社區增加了 3,000 個地塊。我們的土地團隊正在積極與土地賣家接洽，協商符合我們承保標準的新地塊，即使有很高的激勵措施和目前的銷售速度。

In fiscal '24, we began talking about our pivot to growth. This followed a stretch of several years where we had used a significant amount of the cash generated to pay down debt. It's significant to note that while our total lots controlled grew over the two years, our lot options grew by more than 15,000 and our lots owned shrunk by more than 1800 as we focus on our land light strategies.

在 24 財年，我們開始談論轉向成長。在此之前的幾年裡，我們用了大量的現金來償還債務。值得注意的是，雖然我們控制的地塊總數在兩年內有所增長，但由於我們專注於輕型土地戰略，我們的地塊選擇增加了 15,000 多個，而我們擁有的地塊減少了 1,800 多個。

On the far-right side of slide 21, you can see that our lot count decreased sequentially this quarter. This is partially due to being more selective with the new lots that we control during the quarter, as well as walking away from 2,463 lots, primarily during the due diligence period. We are re-underwriting deals right before land takes with current levels of incentives included.

在第 21 張投影片的最右側，您可以看到本季我們的批次數量較上季減少。部分原因是我們在本季度對控制的新地塊進行了更嚴格的篩選，並且主要在盡職調查期間放棄了 2,463 個地塊。我們在土地徵用之前重新承保交易，其中包括當前的激勵水平。

On slide 22, we show our land and land development spend for each quarter going back 5 years. You can see how that pivot to growth has impacted our land and land development spent. However, during the second quarter of '25, our land and land developments then was the lowest it has been in three quarters. This is another indication of our increased focus on ensuring it makes sense to move forward with existing land deals. Again, we are using current home prices, including the current high level of mortgage rate buy downs and other incentives, current construction costs, and current sales space to underwrite to a 20% loss internal rate of return.

在投影片 22 上，我們展示了過去 5 年內每季的土地和土地開發支出。您可以看到這種成長趨勢對我們的土地和土地開發支出產生了怎樣的影響。然而，2025 年第二季度，我們的土地和土地開發量達到了三個季度以來的最低水準。這再次顯示我們更加重視確保現有土地交易的合理推進。再次，我們使用當前房價，包括當前高水平的抵押貸款利率購買和其他激勵措施、當前建築成本和當前銷售空間來承保 20% 的損失內部收益率。

And then right before we are about to acquire the lots, we are re-underwriting them based on the then current conditions just to be sure that it still makes sense to go forward with the land purchase. We feel good that our new acquisitions will yield solid IRRs since we are building in huge incentives and slower paces. Our underwriting standards automatically self-adjust to any changes in market conditions. We are finding many opportunities in our markets and are very focused on growing our top and bottom lines for the long term. And this growth in lots controlled precedes growth and community count, which precedes growth and deliveries. We are very pleased with the trends.

然後，就在我們即將收購地塊之前，我們會根據當時的現狀重新承保，以確保繼續購買土地仍然是合理的。我們很高興看到，由於我們以巨大的激勵措施和較慢的速度進行建設，我們的新收購將產生可觀的內部報酬率。我們的承保標準會根據市場條件的任何變化自動調整。我們在市場中發現了許多機會，並非常注重長期提高我們的營收和利潤。並且，控制地塊的增長先於社區數量的增長，而社區數量的增長又先於交付量的增長。我們對這些趨勢感到非常滿意。

On slide 23, we show the percentage of our lots controlled via option increased from 45% in the second quarter of fiscal '15 to 85% in the second quarter of fiscal '25. This is the highest percentage of option lots we've ever had, continuing our strategic focus on land light.

在投影片 23 中，我們展示了透過選擇權控制的地塊百分比從 2015 財年第二季的 45% 增加到了 2025 財年第二季的 85%。這是我們有史以來擁有的最高比例的選擇地塊，延續了我們對輕型土地的戰略重點。

Turning now to slide 24, you see that we continue to have one of the highest percentages of land controlled via options compared to our peers. Needless to say, with the fourth highest percentage of option lots, we are significantly above the median. I want to clarify a point about our land position. If we were to exclude our own lots in backlog and QMIs as some of our peers do, our percentage would increase to 91%.

現在翻到第 24 張投影片，您會看到，與同行相比，我們透過選擇權控制的土地比例仍然最高。毋庸置疑，我們的期權份額比例位居第四，遠高於中位數。我想澄清一點有關我們土地地位的問題。如果我們像一些同行一樣，將自己的積壓訂單和 QMI 排除在外，我們的百分比將上升到 91%。

On slide 25, compared to our peers, we have the third highest inventory turnover rate. High inventory terms are a key component of our overall strategy. We believe we have opportunities to continue to increase our use of land options and further improve our inventory terms in future periods. Our focus on pays versus price is evident here.

在投影片 25 上，與同業相比，我們的庫存週轉率排名第三。高庫存條款是我們整體策略的關鍵組成部分。我們相信，我們有機會在未來繼續增加土地選擇的使用，並進一步改善我們的庫存條件。我們對報酬與價格的關注在此顯而易見。

Turning to slide 26, even after spending $220 million on land and land development, $27 million to retire our highest coupon debt, and $12 million on repurchasing common stock, we ended the second quarter with $202 million of liquidity, which is within our targeted liquidity range. This is the second quarter in a row that we have been fully invested.

翻到第 26 張幻燈片，即使在土地和土地開發上花費了 2.2 億美元，償還了 2,700 萬美元的最高息票債務，以及回購了 1,200 萬美元的普通股後，我們在第二季度結束時仍擁有 2.02 億美元的流動資金，這在我們的目標流動資金範圍內。這是我們連續第二季全力投資。

Turning now to slide 27, this slide shows our maturity ladder as of April 30, 2025. During the second quarter, we paid off early the remaining $27 million of the 13.5% notes, our highest cost debt that was scheduled to mature in February of 2026. This is the latest example of the steps we have taken over the past several years to improve our maturity ladder and reduce our interest costs. We remain committed to further strengthening our balance sheet going forward.

現在翻到第 27 張投影片，這張投影片展示了我們截至 2025 年 4 月 30 日的成熟度階梯。在第二季度，我們提前償還了剩餘的 2,700 萬美元 13.5% 票據，這是我們成本最高的債務，原定於 2026 年 2 月到期。這是我們過去幾年來為改善我們的期限階梯和降低利息成本而採取的最新措施的例子。我們將繼續致力於進一步加強我們的資產負債表。

Turning to slide 28, we show the progress we have made to date to grow our equity and reduce our debt. Starting on the upper left-hand part of the slide, we show the $1.3 billion growth in equity over the past few years. During the same period on the upper right-hand portion, you can see the $742 million reduction in debt. On the bottom of the slide, you can see that our net debt to net cap at the end of the second quarter of fiscal '25 was 51.4%, which is a significant improvement from our 146.2% at the beginning of fiscal '20.

翻到第 28 張投影片，我們展示了迄今為止我們在增加股權和減少債務方面所取得的進展。從幻燈片的左上角開始，我們展示了過去幾年 13 億美元的股權成長。在同一時期，在右上角，您可以看到債務減少了 7.42 億美元。在投影片的底部，您可以看到，25 財年第二季末我們的淨債務與淨資本之比為 51.4%，與 20 財年年初的 146.2% 相比有了顯著改善。

We still have more work to do to achieve our goal of 30%, but we are comfortable that we are on a path to achieve our targets soon. Given our remaining $225 million of deferred tax assets, we will not have to pay federal income taxes on approximately $700 million of future pre-tax earnings. This benefit will continue to significantly enhance our cash flow in years to come and will accelerate our growth plans.

要實現 30% 的目標，我們還有很多工作要做，但我們確信我們很快就會走上實現目標的道路。鑑於我們剩餘的 2.25 億美元遞延稅項資產，我們將不必為未來約 7 億美元的稅前收益繳納聯邦所得稅。這項好處將在未來幾年繼續顯著增強我們的現金流，並加速我們的成長計畫。

Regarding guidance, given the volatility and the difficulty in projecting margins with moving interest rates and volatility in general, we will focus our guidance only on the next quarter. Our financial guidance assumes no adverse changes in current market conditions, including no further deterioration in our supply chain or material increases in mortgage rates, tariffs, inflation, or cancellation rates. Keep in mind, some materials have already increased in cost in anticipation of tariffs. Our guidance assumes continued extended construction cycle times, averaging five months compared to our pre-COVID cycle times for construction of approximately four months.

至於指引，考慮到波動性以及在利率變動和整體波動的情況下預測利潤率的難度，我們將只關注下一季的指引。我們的財務指導假設當前市場條件不會發生不利變化，包括我們的供應鏈不會進一步惡化，或抵押貸款利率、關稅、通貨膨脹或取消率不會大幅增加。請記住，由於預期關稅，一些材料的成本已經上漲。我們的指導假設施工週期將繼續延長，平均為五個月，而疫情之前的施工週期約為四個月。

It also seems that we continue to be more reliant on QMI sales, which makes forecasting gross margins more difficult. Our guidance assumes continued use of mortgage rate buydowns and other incentives similar to recent months. Further, it excludes any impact to SG&A expense from our Phantom stock expense related solely to the stock price movement from the $96.80 stock price at the end of the second quarter of fiscal $25.

我們似乎繼續更加依賴 QMI 的銷售，這使得預測毛利率更加困難。我們的指導假設繼續使用抵押貸款利率下調和其他與近幾個月類似的激勵措施。此外，它還不包括幻影股票費用對銷售、一般和行政費用的影響，該費用僅與第二季末 25 美元的股價從 96.80 美元的變動有關。

Slide 29 shows our guidance for the third quarter of fiscal '25 compared to actual results for the second quarter of '25. Our expectation for total revenues for the third quarter is between $750 million and $850 million. The midpoint of our total revenue guidance would be up 17% compared to the second quarter.

投影片 29 顯示了我們對 25 財年第三季的指引與 25 年第二季的實際結果的比較。我們預計第三季的總營收將在 7.5 億美元至 8.5 億美元之間。我們預計的總收入中位數將比第二季成長 17%。

Adjusted gross margin is expected to be in the range of 17% to 18%. At the midpoint, it would be up slightly compared to the second quarter. This is lower than a typical gross margin, particularly because of the increased cost of mortgage rate buydowns and our focus on pace versus price.

調整後的毛利率預計在17%至18%之間。從中期來看，與第二季度相比會略有上升。這低於典型的毛利率，特別是因為抵押貸款利率降低的成本增加以及我們關注的是速度而不是價格。

We expect the range of SG&A as a percentage of total revenues to be between 11% and 12%, which is still higher than usual. One of the reasons our SG&A is running a little high is that we are gearing up for significant community count growth, and we have to make new hires in advance of those communities. Our expectations for adjusted pre-tax income for the third quarter is between $30 million and $40 million dollars, which would be higher than the second quarter.

我們預計銷售、一般及行政費用佔總收入的百分比將在 11% 至 12% 之間，這仍然高於平時。我們的銷售、一般和行政費用 (SG&A) 有點高的原因之一是，我們正在為社區數量的大幅增長做準備，我們必須在這些社區之前招募新員工。我們預計第三季調整後的稅前收入將在 3,000 萬美元至 4,000 萬美元之間，高於第二季。

Moving to slide 30, we show all of the guidance we gave in the third quarter. The only two lines on here that we have not mentioned are income from unconsolidated joint ventures and adjusted EBITDA. We expect income from joint ventures to be between $15 million and $25 million, and our guidance for adjusted EBITDA is between $60 million and $70 million.

移至第 30 張投影片，我們展示了第三季給予的所有指引。這裡我們唯一沒有提到的兩行是來自非合併合資企業的收入和調整後的 EBITDA。我們預計合資企業的營收將在 1,500 萬美元至 2,500 萬美元之間，調整後的 EBITDA 預期在 6,000 萬美元至 7,000 萬美元之間。

Turning to slide 31, we show that our return on equity was 27%. Over the last 12 months, we are the second highest amongst our mid-sized peers shown in the dark green on the slide, and the third highest, including the larger peer group. Obviously, this is helped by our higher leverage. On slide 32, we show that compared to our peers, we have one of the highest adjusted EBITDA returns on investment at 26.1%. On this basis, we are the highest amongst the mid-sized peers and fourth highest overall.

翻到第 31 張投影片，我們顯示我們的股本回報率為 27%。在過去的 12 個月中，我們在幻燈片中深綠色顯示的中型同行中排名第二，在較大的同行群體中排名第三。顯然，這得益於我們更高的槓桿率。在投影片 32 中，我們表明，與同業相比，我們的調整後 EBITDA 投資回報率最高，達到 26.1%。以此計算，我們在中型同業中排名最高，整體排名第四。

While our ROE was helped by our leverage, our adjusted EBIT return on investment is a true measure of pure home building operating performance. With the highest among our mid-sized peers and among the highest of all peers regardless of size, we believe we are striking a good balance between pace and price, which is delivering industry leading ROIs and ROEs. As our leverage continues to come down, we believe we will not only have industry leading EBIT ROIs, but also have one of the leading pre-tax ROIs as well.

雖然我們的 ROE 得益於我們的槓桿作用，但我們調整後的 EBIT 投資回報率才是純住宅建築營運績效的真實衡量標準。憑藉我們在中型同業中以及所有同業（無論規模大小）中最高的回報率，我們相信我們在速度和價格之間取得了良好的平衡，從而實現了行業領先的投資回報率和淨資產收益率。隨著我們的槓桿率持續下降，我們相信我們不僅將擁有業界領先的息稅前投資報酬率，而且還將擁有領先的稅前投資報酬率之一。

Over the last several years, we've consistently had one of the highest even ROIs among our peers. Eventually, investors will recognize our consistent superior returns on capital and significantly improved balance sheet. Given our rapidly growing book value, we think it would be appropriate to consider a variety of metrics including EBIT return on investment, enterprise value to EBITDA, and our price to earnings multiple when establishing a fair value for our stock. We believe when all of the fundamental financial metrics are considered, our stock is one of the most compelling values in the industry.

在過去的幾年中，我們的投資回報率一直是同業中最高的之一。最終，投資者將認可我們持續優異的資本回報率和顯著改善的資產負債表。鑑於我們快速成長的帳面價值，我們認為在確定我們股票的公允價值時，考慮各種指標是適當的，包括息稅前利潤投資回報率、企業價值與息稅折舊攤銷前利潤之比以及市盈率。我們相信，當考慮所有基本財務指標時，我們的股票是業內最具吸引力的股票之一。

On slide 33, we show our price to book multiples compared to our peers, and we are right around the median for mid-size mid-sized home builders. On slide 34, we show the trailing 12-month price to earnings ratio for us and our peer group based on our price to earnings multiple of 3.89 times at Monday's stock price of $109.85.

在幻燈片 33 上，我們展示了與同行相比的市淨率，我們的市淨率處於中型住宅建築商的中位數左右。在幻燈片 34 中，我們展示了我們和同行過去 12 個月的市盈率，基於週一股價 109.85 美元時的 3.89 倍市盈率。

We are trading at a 53% discount to the home building industry average PE ratio if you consider all public builders and a 41% discount from considering our mid-sized peers. We recognize that our stock may trade at a discount to the group because of our higher leverage, but our leverage has been shrinking, and our equity has been growing rapidly.

如果考慮所有公共建築商，我們的本益比比住宅建築業平均本益比低 53%，如果考慮我們的中型同行，我們的本益比則低 41%。我們意識到，由於我們的槓桿率較高，我們的股票交易價格可能低於集團價格，但我們的槓桿率一直在縮小，而我們的股本卻在快速成長。

On slide 35, we show that despite our extremely high ROE, there are a number of peers that have a higher price to book ratio than us. This slide more visually demonstrates how much we are undervalued relative to other builders when looking at the relationship between ROE and price to book. A very similar result exists when looking at ROE to price to earnings.

在第 35 張投影片上，我們表明，儘管我們的 ROE 極高，但仍有許多同行的市淨率高於我們。這張投影片更直觀地展示了當查看 ROE 和市淨率之間的關係時，我們相對於其他建築商被低估了多少。當我們將 ROE 與本益比進行比較時，也會得到非常相似的結果。

On slide 36, you can see an even more glaring disconnect with our high even ROI and our PE. We have the fourth highest EBIT ROI, and yet our stock trades at the lowest multiple earnings -- multiple to earnings of the group.

在第 36 張投影片上，您可以看到我們的高 ROI 和 PE 之間有更明顯的脫節。我們的息稅前利潤投資報酬率 (EBIT ROI) 排名第四，但我們的股票交易本益比卻是集團中最低的。

These last 4 slides further emphasize our point that gives our high return on equity and return on investment combined with our rapidly improving balance sheet, we believe our stock continues to be the most undervalued in the entire universe of public home builders.

最後四張投影片進一步強調了我們的觀點，鑑於我們較高的股本回報率和投資回報率，加上我們快速改善的資產負債表，我們相信我們的股票仍然是整個公共住宅建築商中最被低估的。

I'll now turn it back over to Ara for some closing remarks.

現在我將把時間交還給 Ara，請他做最後的總結發言。

Thanks, Brad. While we met most expectations this quarter, we remain vigilant given the uncertainty in the broader economy. We're closely monitoring our communities and adjusting our local strategies accordingly.

謝謝，布拉德。雖然本季我們達到了大多數預期，但鑑於整體經濟的不確定性，我們仍保持警惕。我們正在密切關注我們的社區並相應地調整我們的當地策略。

One particular area of focus that we talked about quite a bit is burning through assets that are underperforming because of when we control the lots and replacing them with lots being underwritten with current levels of incentives. Those should produce better returns. While we are still performing well compared to our peers, whether you look at sales absorption levels, ROE or ROI, as we move forward, we continue to be very disciplined in our underwriting process for all new land deals.

我們經常討論的一個重點領域是，當我們控制這些地塊時，我們會消耗掉那些表現不佳的資產，並用具有當前激勵水平的承保地塊來取代它們。這些應該會產生更好的回報。儘管與同業相比，我們的表現仍然良好，但無論從銷售吸收水準、股本回報率或投資回報率來看，隨著我們不斷前進，我們將繼續嚴格執行所有新土地交易的核保流程。

Fortunately, with 85% to 91% of our lots controlled through options, we have the ability to find win-win alternatives with our land sellers. We're rapidly replenishing our land supply with more profitable new communities. You have to look at our historical ROIs and believe that we can replenish our land with good returns. We're continuing to monitor and adjust home pricing on a community-by-community basis. We're hyperfocused on improving our inventory turnover and continuing to deliver strong ROE and ROI.

幸運的是，我們的 85% 到 91% 的土地都是透過選擇權控制的，我們有能力與土地賣家找到雙贏的替代方案。我們正在透過更具盈利能力的新社區迅速補充我們的土地供應。你必須看看我們的歷史投資報酬率，並相信我們可以用好的回報來補充我們的土地。我們將繼續監控並根據每個社區的情況調整房價。我們高度重視提高庫存週轉率並持續實現強勁的 ROE 和 ROI。

That concludes our formal comments, and we'll be happy to turn it over for Q&A.

我們的正式評論到此結束，我們很樂意將其交給問答環節。

(Operator Instructions)

（操作員指示）

(inaudible)

（聽不清楚）

Hey, good morning. Thanks for all the detail on vintage land relative to incentives. So I understand that you're now assuming a higher level of incentives on recent land purchases, but does this mean you've actually seen lower land prices on lease and acquisitions? Because that seems a little surprising based on the commentary we've gotten from other builders about land prices still remaining sticky.

嘿，早安。感謝您提供有關古董土地與激勵措施的詳細資訊。因此，我理解您現在假設最近的土地購買有更高水準的激勵措施，但這是否意味著您實際上看到租賃和收購的土地價格下降了？因為根據我們從其他建築商那裡得到的關於土地價格仍然保持堅挺的評論，這似乎有點令人驚訝。

Otherwise, it seems that you would have a tough time making deals to meet your own driving hurdles.

否則，您似乎很難達成交易以克服自己的駕駛障礙。

Land sellers are definitely the last to adjust prices, but we're able to find enough opportunities to replenish our land supply at dramatically better returns. It obviously varies by market. It's tougher in some markets. It's easier in other markets, so we're focused on getting a good geographic mix.

土地賣家肯定是最後調整價格的，但我們能夠找到足夠的機會來補充土地供應並獲得更高的回報。顯然，它因市場而異。在某些市場，情況會更加艱難。在其他市場這更容易，所以我們專注於獲得良好的地理組合。

But we're definitely able to find parcels that meet our historic return hurdles, which are still our current return targets in new land acquisitions even with our assumed 10.5% average incentive and with the current sales pace.

但我們肯定能夠找到符合我們歷史回報障礙的地塊，即使我們假設的平均激勵率為 10.5%，並且以目前的銷售速度，這些地塊仍然是我們目前在新土地收購中的回報目標。

Okay, thanks, that makes sense. Are you able to maybe provide a bit more detail on what market you're specifically seeing like easier terms I guess with the landfill?

好的，謝謝，這很有道理。您能否提供一些關於您所關注的具體市場的更詳細信息，例如關於垃圾掩埋場的更簡單的條款？

Well, markets that I mentioned that historically, well, I shouldn't say historically, that currently are yielding better results include Delaware, Virginia, Southeast Coastal, Charleston areas, New Jersey and Maryland as examples. Definitely finding it easier to pencil opportunities there at the moment. But having said that, even the more difficult markets, we're finding opportunities that yield appropriate returns.

好吧，我提到的歷史上，嗯，我不應該說歷史上，目前正在產生更好結果的市場包括德拉瓦州、維吉尼亞州、東南沿海地區、查爾斯頓地區、新澤西州和馬裡蘭州。毫無疑問，現在在那裡尋找機會變得更加容易。但話雖如此，即使在更困難的市場中，我們也在尋找能帶來適當回報的機會。

Okay, got it, thank you. And your margin guidance for next quarter in the flat trend, but given that the demand environment has not materially improved since the previous quarter, and I'm guessing your incentives are still running at EBIT levels, is there anything besides the typical seasonal uplift in margins that gives you the confidence to achieve this?

好的，知道了，謝謝。您對下個季度的利潤率預期是持平的，但考慮到需求環境自上一季以來並沒有實質性改善，而且我猜您的激勵措施仍然在息稅前利潤水平上，除了典型的季節性利潤率上升之外，還有什麼因素可以讓您有信心實現這一目標？

Well, I mean, again, part of it is based on a community-by-community analysis looking at our backlog and also knowing our efforts in cost reduction, which is definitely an opportunity right now.

嗯，我的意思是，部分原因在於基於對社區的分析，查看我們的積壓工作，並了解我們在降低成本方面的努力，這絕對是現在的機會。

But keep in mind the range we gave is 17% to 18% and the quarter that just ended with 17.3%. So it's not like that midpoint is significantly different than what we just performed. I think what you said is probably the right way to think about it, it's kind of stayed where it's been, it's running where it's where you've seen it from the second quarter, maybe a slight uplift in the next, but not much.

但請記住，我們給出的範圍是 17% 到 18%，而剛結束的季度是 17.3%。因此，這個中點與我們剛才執行的並沒有太大不同。我認為您所說的可能是正確的思考方式，它基本上保持原樣，運行在第二季度所看到的位置，下一季可能會略有上升，但幅度不大。

Alex Barron, Housing Research Center.

住房研究中心的亞歷克斯·巴倫。

Thank you, gentlemen, and congrats on a good performance, I guess in a tough environment. I wanted to ask about the current incentive structure that you guys have. Is it primarily still like closing costs and rate buy downs, or are you guys doing some price adjustments as well?

謝謝各位，恭喜你們在艱難的環境中取得如此出色的表現。我想問一下你們目前的激勵機制。它主要還是像成交成本和利率降低，還是你們也做一些價格調整？

All of the above, the mortgage rate buydowns are typically on homes that can deliver in 90 days for homes that are -- because, by the way, it becomes cost prohibitive to do it further out. But on homes that do deliver out beyond the 90 days, we offer a cost price reduction or some other kind of incentive on upgrades and options in lieu of a mortgage rate buydown. So it's typically one or the other, but in some cases, we offer no incentives in some of our prime properties.

綜上所述，抵押貸款利率買斷通常針對的是那些可以在 90 天內交付的房屋——順便說一句，因為如果再往後做，成本就會變得過高。但對於超過 90 天交付的房屋，我們會提供成本價格降低或其他某種升級和選擇的激勵措施，以代替抵押貸款利率降低。所以通常是其中一種，但在某些情況下，我們對一些優質房產不提供任何激勵措施。

And I know a couple of years ago you guys kind of switched to focus more heavily on spec building than in the past. Has that thought process changed? Are you guys moving back towards more balance between built to order or you guys sticking with a heavy focus on spec building and what's the thought process there?

我知道幾年前你們就比過去更加重視規格建設。這種思考過程改變了嗎？你們是否正在轉向在按訂單生產之間取得​​更多平衡，還是繼續將重點放在規格生產上，你們的思考過程是怎樣的？

As we mentioned, we actually hit our peak, our highest level of QMI sales. We call them QMIs, quick move-in homes at 79%, and that is still part of our strategy going forward. And one of the main reasons is that, when it's within 90 days of delivery you can affordably pay for a mortgage rate buydown. It's difficult if you can't deliver it in 90 days and looking at a new build contract, that's difficult to achieve in 90 days. So I'd say at the moment, it's still absolutely part of our strategy.

正如我們所提到的，我們實際上達到了 QMI 銷售的頂峰，最高水準。我們稱之為 QMI，即 79% 的快速入住房屋，這仍然是我們未來策略的一部分。其中一個主要原因是，在交付後 90 天內，您可以負擔得起抵押貸款利率的降低。如果無法在 90 天內交付，那就很困難了，而且從新建合約來看，在 90 天內交付也很困難。所以我想說，目前它仍然是我們策略的一部分。

Got it. And if I could ask one more, as far as the impairments, even though it was only $3 million, how many communities were involved and what markets, if you can answer that?

知道了。我可以再問一個問題，就損害而言，儘管只有 300 萬美元，但涉及多少社區以及哪些市場，您能回答嗎？

David, you want to answer that one?

大衛，你想回答這個問題嗎？

Yeah, it was just one community in Ohio. It was the impairment for [$1 million] and the rest was related to walkaways (inaudible) --

是的，它只是俄亥俄州的一個社區。這是[100萬美元]的減值，其餘部分與放棄有關（聽不清楚）——

And the walkaways were primarily during the due diligence periods.

而放棄主要發生在盡職調查期間。

Jay McCanless, Wedbush.

傑伊麥坎利斯，韋德布希。

The first one, could you give us a little commentary on what you've seen so far in May and any improvements or otherwise relative to what you saw in April?

第一個問題，您能否對我們 5 月迄今為止看到的情況以及與 4 月相比有哪些改進或其他方面給出一些評論？

I'd say overall, May is pretty much status quo with what we reported for April.

我想說，總體而言，五月的情況與我們四月報告的情況基本一致。

And then Ara, you were talking about some of the older vintage land I guess at the current sales pace, assuming no change in incentives or rates, how long do you think it's going to take you to clear out the 22 and I think you said West Coast for 21. How long to clear that out you think?

然後，Ara，您談到了一些較老的土地，我猜按照目前的銷售速度，假設激勵措施或利率沒有變化，您認為需要多長時間才能清理出這 22 個，我想您說的是西海岸的 21 個。您認為需要多長時間才能解決該問題？

Oh, we haven't done that exact analysis. Obviously, in some geographies, we're already cleared out. In others, we may have two or three years out. So it's a community-by-community thing and to be honest, we just haven't looked at how that clears the system and when, but needless to say, I mean, it's only -- I believe the 22 vintage was about 10% of our lots, somewhere around that number.

哦，我們還沒有做過那麼精確的分析。顯然，在某些地區，我們已經清理完畢。在其他情況下，我們可能還需要兩到三年的時間。所以這是一個社區各自為政的事情，說實話，我們只是還沒有研究如何以及何時清理系統，但不用說，我的意思是，它只是——我相信 22 年份的葡萄酒約占我們批次的 10%，大約在這個數字左右。

So it's just not a huge part. 21 on the West Coast is a lower percentage than 10%. So we're just balancing and looking to burn through those. Now having said that, the 23 and 24 vintages were typically underwritten at close to 8% margin, 8% incentives versus our 10%. So they're a little bit below our target ROIs but not dramatically below.

所以它並不是很重要的一部分。西海岸的 21% 的比例低於 10%。所以我們只是在平衡並尋求解決這些問題。話雖如此，23 和 24 年份的承保利潤率通常接近 8%，激勵率為 8%，而我們的則為 10%。因此，它們略低於我們的目標投資報酬率，但並沒有低太多。

And as part of that and part of the reason I asked that is, we're all, I think not only for Hovnanian but for the group looking for when gross margins might bottom and just any type of commentary you can give on that and especially, I know it's tough because you are all doing QMIs and a lot of option deals, but is there any visibility in sight for bottom-end gross margins for Hovnanian?

作為其中的一部分，也是我問這個問題的部分原因是，我認為我們所有人都在尋找毛利率何時可能觸底，並且您可以對此給出任何類型的評論，特別是，我知道這很難，因為你們都在做 QMI 和大量的期權交易，但是 Hovnanian 的底端毛利率是否有任何可見性？

Well, I would hope that we're near a bottom now and then, we've kind of given our guidance for next quarter, which is pretty flat with our second quarter in terms of gross margins, up slightly at the midpoint. So if you could call that a bottom, then we're there, but as you pointed out, with a QMI strategy and with a quarter like this where we sell almost 40% of our quarterly deliveries in the quarter, it's hard to really accurately project and as you get further out a quarter or beyond a quarter, it's even more difficult.

好吧，我希望我們現在接近底部，我們已經給出了下個季度的指導，就毛利率而言，與第二季度持平，中點略有上升。因此，如果您可以稱之為底部，那麼我們就在那裡，但正如您所指出的，採用 QMI 策略，並且在這個季度中，我們在本季度銷售了近 40% 的季度交付量，因此很難真正準確地進行預測，並且隨著您進一步深入一個季度或超過一個季度，這會變得更加困難。

Right now, we're just doing the same playbook that we've done for years, underwriting at current levels and we're marking to market to move the older inventory if it's performing under our current target levels.

目前，我們只是在執行多年來一直在執行的相同策略，以當前水平承保，如果舊庫存的表現低於我們當前的目標水平，我們就會按市價出售舊庫存。

If I could sneak one more in, kind of thinking about the back half of the calendar year. Potential increases in lumber prices may be coming, but at the same time we're hearing from some of your competitors that labor costs are getting cheaper. We saw drywall prices came down today, I guess, you guys have done a great job getting the build cost down, but with some of these cross currents, and I think especially with the lumber one probably being most likely to occur, how are you thinking about construction costs in the back half of the year?

如果我可以再偷偷地再做一次，我會考慮一下今年下半年的情況。木材價格可能會上漲，但與此同時，我們從一些競爭對手那裡聽說勞動力成本正在變得更便宜。我們今天看到石膏板價格下降了，我想，你們在降低建築成本方面做得很好，但是由於一些逆流，我認為尤其是木材價格最有可能發生逆流，您如何看待下半年的建築成本？

I think other than the unknown of lumber, we feel pretty good about it. Some of the material costs may be impacted by tariffs. On the other hand, labor recognizes the slower market, so we're making some gains on that. So at the moment, I'd say we're optimistic that other than lumber, which is a big unknown, that we can continue to slightly reduce our construction costs.

我認為，除了木材的未知性之外，我們對此感覺相當良好。部分材料成本可能會受到關稅的影響。另一方面，勞動力認識到市場成長放緩，因此我們在這方面取得了一些進展。因此目前，我想說我們很樂觀，除了木材這個未知的因素外，我們可以繼續略微降低建築成本。

Okay, great. That's all I have. Thank you.

好的，太好了。這就是我所擁有的一切。謝謝。

Okay, thank you.

好的，謝謝。

Thank you. I'm showing no further questions at this time. I'll now come back to Ara Hovnanian for closing remarks.

謝謝。我目前沒有其他問題。現在我請阿拉霍夫納尼安作最後發言。

Great. Well, thank you very much. Again, we're satisfied with the quarter given the difficult environment, but we look forward to producing higher returns, more in keeping with our historic standards as we replenish our land supply underwritten at today's market.

偉大的。嗯，非常感謝。再次，考慮到困難的環境，我們對本季的表現感到滿意，但我們期待產生更高的回報，隨著我們在當今市場上補充土地供應，我們期待產生更高的回報，更加符合我們的歷史標準。

Thank you, and we look forward to reporting better results. Thanks.

謝謝，我們期待有更好的結果。謝謝。

This concludes our conference call for today. Thank you for participating. Have a nice day. All parties may now disconnect.

今天的電話會議到此結束。感謝您的參與。祝你今天過得愉快。各方現在都可以斷開連線。