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SMALL BUSINESS
Hovnanian Enterprises Reports Second Quarter Fiscal 2009 Results
RESULTS FOR THE THREE AND SIX MONTH PERIODS ENDED
- Total revenues were
$398.0 million for the second quarter of fiscal 2009 compared with$776.4 million in last year's second quarter. For the first six months of fiscal 2009, total revenues were$771.8 million compared with$1.9 billion for the same period in the prior year.
- For the second quarter of fiscal 2009, the after-tax net loss was
$118.6 million , or$1.50 per common share, compared with a net loss of$340.7 million , or$5.29 per common share, in the prior year's second quarter. For the first half of fiscal 2009, the after-tax net loss was$297.0 million , or$3.80 per share compared with a net loss of$471.7 million , or$7.43 , in the first six months a year ago.
- During the second quarter of fiscal 2009, total repurchases of unsecured senior and senior subordinated notes amounted to
$525.0 million . Excluding the$71.1 million of face value of the 6.0% senior subordinated notes due inJanuary 2010 that were purchased at an average price of 92.2%, the average price of the remaining debt repurchases was 31.5%. As a result, a$311.3 million gain on extinguishment of debt was recorded during the second quarter of fiscal 2009.
- Pre-tax land-related charges during the second quarter of fiscal 2009 were
$318.9 million , including land impairments of$301.1 million , write-offs of predevelopment costs and land deposits of$9.1 million and$8.7 million representing the write down of our investments in certain unconsolidated joint ventures.
- Deliveries, excluding unconsolidated joint ventures, were 1,388 homes for the 2009 second quarter, a 44% decline from 2,494 homes in the same quarter a year ago. For the first half of 2009, deliveries, excluding unconsolidated joint ventures, declined 57% to 2,596 homes compared with 6,098 home deliveries in the first six months of fiscal 2008.
- The number of net contracts for the second quarter of fiscal 2009, excluding unconsolidated joint ventures, declined 29% to 1,586 homes compared with the second quarter of the prior year. For the sixth month period ended
April 30, 2009 , the number of net contracts, excluding unconsolidated joint ventures, was 2,547 homes, a 32% decline, compared with the same period a year ago.
- At
April 30, 2009 , there were 215 active selling communities, excluding unconsolidated joint ventures, a decline of 164 active communities, or 43%, from the end of the prior year's second quarter.
- Net contracts per community increased 25% from 5.9 in last year's second quarter to 7.4 net contracts per community in the second quarter of fiscal 2009.
- The contract cancellation rate, excluding unconsolidated joint ventures, for the second quarter of fiscal 2009 was 24%, compared with the contract cancellation rate of 29% in last year's second quarter and 31% in the first quarter of fiscal 2009.
- The pre-tax loss was
$97.4 million for the 2009 second quarter and$275.2 million for the first six months of fiscal 2009. Excluding land-related charges and the gain from extinguishment of debt, the pre-tax loss was$89.7 million and$215.0 million , respectively, for the three month and six month periods endedApril 30, 2009 .
- The FAS 109 current and deferred tax valuation allowance charge to earnings was
$42.2 million during the second quarter of 2009 and$121.6 million year to date and as ofApril 30, 2009 , the total valuation allowance is$797.1 million . This FAS 109 charge is a non-cash valuation allowance against the tax assets for GAAP purposes. For tax purposes, the tax deductions associated with the tax assets may be carried forward for 20 years.
CASH AND INVENTORY AS OF
- At
April 30, 2009 , homebuilding cash was$779.2 million and the balance on the revolving credit facility was$100.0 million . Cash flow during the second quarter of fiscal 2009, excluding the$208.4 million spent on debt repurchases, was$47.5 million , similar to$56.1 million of cash flow in the second quarter of the prior year.
- The total land position, as of
April 30, 2009 , decreased by 17,303 lots, or 33%, compared toApril 30, 2008 , reflecting decreases of 3,411 owned lots and 13,892 optioned lots.
- As of
April 30, 2009 , lots controlled under option contracts totaled 13,299 and owned lots totaled 21,853. The total land position of 35,152 lots represents a 71% decline from the peak total land position atApril 30, 2006 .
- Started unsold homes, excluding models, declined 41%, to 892 at
April 30, 2009 compared to 1,503 atApril 30, 2008 .
OTHER KEY OPERATING DATA:
- Contract backlog, as of
April 30, 2009 , excluding unconsolidated joint ventures, was 1,858 homes with a sales value of$592.8 million , a decrease of 52% compared toApril 30, 2008 .
- Homebuilding gross margin, before interest expense included in cost of sales, was 8.3% for the second quarter of 2009, compared to 6.8% in the fiscal 2008 second quarter and 5.7% in the 2009 first quarter.
- Pre-tax income from Financial Services was
$2.5 million in the second quarter of fiscal 2009 and$4.1 million for the first half of fiscal 2009.
- During the second quarter of fiscal 2009, home deliveries through unconsolidated joint ventures were 71 homes, compared with 196 homes in the second quarter of fiscal 2008. During the first half of fiscal 2009, home deliveries through unconsolidated joint ventures were 146 homes compared with 351 homes during the same period in the prior year.
COMMENTS FROM MANAGEMENT:
"Although the home sales environment remains challenging amid increasingly high levels of unemployment and uncertainty about the overall US economy, our monthly net contracts per community have increased in each of the past two quarters and in six of the past seven months," commented
"Our contract cancellation rate of 24% for the second quarter is at a more normalized level, the likes of which we have not reported since the third quarter of 2005," continued Mr. Hovnanian. "The combination of historically low mortgage rates and steep corrections in home prices have pushed affordability close to an all time high across the country. Although we lowered our sales prices further which resulted in the land impairments we took during the second quarter, we have seen more stability in home prices over the most recent six weeks. In spite of these encouraging signs, we remain concerned that the combination of the expiration of the
"Notwithstanding the presence of a small number of positive trends, we remain extremely focused on maximizing liquidity and reducing our debt levels," stated
"We will continue to make every operational decision with cash flow implications in mind. A laser focus on generating and preserving cash, coupled with a modestly improving macro homebuilding environment will enable us to weather the remainder of the downturn and position ourselves to take advantage of opportunities that will abound in the eventual housing market recovery," concluded Mr. Hovnanian.
WEBCAST INFORMATION:
Hovnanian Enterprises will webcast its fiscal 2009 second quarter financial results conference call at
ABOUT HOVNANIAN ENTERPRISES:
Hovnanian Enterprises, Inc., founded in 1959 by
Additional information on Hovnanian Enterprises, Inc., including a summary investment profile and the Company's 2008 annual report, can be accessed through the "Investor Relations" section of the Hovnanian Enterprises' website at http://www.khov.com. To be added to Hovnanian's investor e-mail or fax lists, please send an e-mail to IR@khov.com or sign up at http://www.khov.com.
NON-GAAP FINANCIAL MEASURES:
Consolidated earnings before interest expense, income taxes, depreciation and amortization ("EBITDA") and before inventory impairment loss and land option write-offs and gain on extinguishment of debt ("Adjusted EBITDA") are not U.S. generally accepted accounting principles (GAAP) financial measures. The most directly comparable GAAP financial measure is net income (loss). The reconciliation of EBITDA and Adjusted EBITDA to net loss is presented in a table attached to this earnings release.
Cash flow is a non-GAAP financial measure. The most directly comparable GAAP financial measure is Net Cash provided by (or used in) Operating Activities. The Company uses cash flow to mean the amount of Net Cash provided by (or used in) Operating Activities for the period, as reported on the Consolidated Statement of Cash Flows, excluding changes in mortgage notes receivable at the mortgage company, plus (or minus) the amount of Net Cash provided by (or used in) Investing Activities. For the second quarter of 2009, cash flow was
Loss Before Income Taxes Excluding Land-Related Charges, Intangible Impairments and Gain on Extinguishment of Debt is a non-GAAP financial measure. The most directly comparable GAAP financial measure is Loss Before Income Taxes. The reconciliation of Loss Before Income Taxes Excluding Land-Related Charges, Intangible Impairments and Gain on Extinguishment of Debt to Loss Before Income Taxes is presented in a table attached to this earnings release.
Note: All statements in this Press Release 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 risks, uncertainties and other factors include, but are not limited to, (1) changes in general and local economic and industry and business conditions, (2) adverse weather conditions and natural disasters, (3) changes in market conditions and seasonality of the Company's business, (4) changes in home prices and sales activity in the markets where the Company builds homes, (5) government regulation, including regulations concerning development of land, the home building, sales and customer financing processes, and the environment, (6) fluctuations in interest rates and the availability of mortgage financing, (7) shortages in, and price fluctuations of, raw materials and labor, (8) the availability and cost of suitable land and improved lots, (9) levels of competition, (10) availability of financing to the Company, (11) utility shortages and outages or rate fluctuations, (12) levels of indebtedness and restrictions on the Company's operations and activities imposed by the agreements governing the Company's outstanding indebtedness, (13) operations through joint ventures with third parties, (14) product liability litigation and warranty claims, (15) successful identification and integration of acquisitions, (16) significant influence of the Company's controlling stockholders, (17) geopolitical risks, terrorist acts and other acts of war and (18) other factors described in detail in the Company's Form 10-K for the year ended
(Financial Tables Follow)
Hovnanian Enterprises, Inc.
April 30, 2009
Statements of Consolidated Operations
(Dollars in Thousands, Except Per Share)
Three Months Ended Six Months Ended
April 30, April 30,
------------------ ------------------
2009 2008 2009 2008
------ ------ ------ ------
(Unaudited) (Unaudited)
Total Revenues $397,999 $776,439 $771,783 $1,870,140
Costs and Expenses (a) 796,532 1,116,480 1,405,073 2,373,936
Gain on Extinguishment of
Debt 311,268 - 390,788 -
Loss from Unconsolidated
Joint Ventures (10,094) (3,397) (32,683) (8,436)
------- ------- ------- -------
Loss Before Income Taxes (97,359) (343,438) (275,185) (512,232)
Income Tax Provision (Benefit) 21,262 (2,727) 21,846 (40,578)
------- ------- ------- -------
Net Loss $(118,621) $(340,711) $(297,031) $(471,654)
========== ========== =========== ==========
Per Share Data:
Basic and Assuming
Dilution:
Loss Per Common Share $(1.50) $(5.29) $(3.80) $(7.43)
Weighted Average Number
of Common Shares
Outstanding (b) 79,146 64,410 78,154 63,455
(a) Includes inventory impairment loss and land option write-offs.
(b) For periods with a net loss, basic shares are used in accordance with
GAAP rules.
Hovnanian Enterprises, Inc.
April 30, 2009
Reconciliation of Loss Before Income Taxes Excluding Land-Related
Charges, Intangible Impairments and Gain on Extinguishment of Debt to Loss
Before Income Taxes
(Dollars in Thousands)
Three Months Ended Six Months Ended
April 30, April 30,
------------------ ------------------
2009 2008 2009 2008
------ ------ ------ ------
(Unaudited) (Unaudited)
Loss Before Income Taxes $(97,359) $(343,438) $(275,185) $(512,232)
Inventory Impairment Loss
and Land Option Write-Offs 310,194 245,860 420,375 336,028
Unconsolidated Joint Venture
Investment, Intangible and
Land-Related Charges 8,727 5,145 30,551 9,152
Gain on Extinguishment of
Debt (311,268) - (390,788) -
--------- -------- --------- ---------
Loss Before Income Taxes
Excluding Land-Related
Charges, Intangible
Impairments and Gain
on Extinguishment of
Debt (a) $(89,706) $(92,433) $(215,047) $(167,052)
========== ========= ========= ==========
(a) Loss Before Income Taxes Excluding Land-Related Charges, Intangible
Impairments and Gain on Extinguishment of Debt is a non-GAAP financial
measure. The most directly comparable GAAP financial measure is Loss
Before Income Taxes.
Hovnanian Enterprises, Inc. April 30, 2009 Gross Margin (Dollars in Thousands) Homebuilding Gross Homebuilding Gross Margin Margin Three Months Ended Six Months Ended April 30, April 30, ------------------ -------------------- 2009 2008 2009 2008 -------- -------- -------- -------- (Unaudited) (Unaudited)
Sale of Homes $381,698 $755,684 $740,750 $1,807,502 Cost of Sales, Excluding Interest (a) 350,178 704,613 688,608 1,686,181 -------- ------- -------- --------- Homebuilding Gross Margin, Excluding Interest 31,520 51,071 52,142 121,321 Homebuilding Cost of Sales Interest 24,785 33,103 47,389 61,066 -------- ------- -------- --------- Homebuilding Gross Margin, Including Interest $6,735 $17,968 $4,753 $60,255 ======== ======= ======= =========
Gross Margin Percentage, Excluding Interest 8.3% 6.8% 7.0% 6.7% Gross Margin Percentage, Including Interest 1.8% 2.4% 0.6% 3.3%
Land Sales Gross Land Sales Gross Margin Margin Three Months Ended Six Months Ended April 30, April 30, ------------------ ------------------ 2009 2008 2009 2008 -------- -------- -------- -------- (Unaudited) (Unaudited) Land Sales $3,101 $3,740 $5,900 $26,493 Cost of Sales, Excluding Interest (a) 970 2,232 3,215 24,228 -------- ------- -------- -------- Land Sales Gross Margin, Excluding Interest 2,131 1,508 2,685 2,265 Land Sales Interest 1,255 1,469 1,780 2,094 -------- ------- -------- -------- Land Sales Gross Margin, Including Interest $876 $39 $905 $171 ======== ======= ======== ========
(a) Does not include cost associated with walking away from land options or inventory impairment losses which are recorded as Inventory impairment loss and land option write-offs in the Condensed Consolidated Statements of Operations.
Hovnanian Enterprises, Inc. April 30, 2009 Reconciliation of Adjusted EBITDA to Net Loss (Dollars in Thousands)
Three Months Ended Six Months Ended April 30, April 30, -------------------- ------------------- 2009 2008 2009 2008 -------- -------- -------- -------- (Unaudited) (Unaudited) Net Loss $(118,621) $(340,711) $(297,031) $(471,654) Income Tax Provision (Benefit) 21,262 (2,727) 21,846 (40,578) Interest Expense 44,564 35,034 91,923 64,162 -------- ------- -------- -------- EBIT (a) (52,795) (308,404) (183,262) (448,070) Depreciation 3,988 4,508 9,286 9,105 Amortization of Debt Costs 1,571 503 3,231 1,096 Amortization of Intangibles - 292 - 1,227 -------- ------- -------- -------- EBITDA (b) (47,236) (303,101) (170,745) (436,642) Inventory Impairment Loss and Land Option Write-offs 310,194 245,860 420,375 336,028 Gain on Extinguishment of Debt (311,268) - (390,788) - -------- ------- -------- -------- Adjusted EBITDA (c) $(48,310) $(57,241) $(141,158) $(100,614) ======== ========= ========== ==========
Interest Incurred $47,588 $41,206 $101,098 $86,122
Adjusted EBITDA to Interest Incurred (1.02) (1.39) (1.40) (1.17)
(a) EBIT is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net loss. EBIT represents earnings before interest expense and income taxes. (b) EBITDA is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net loss. EBITDA represents earnings before interest expense, income taxes, depreciation and amortization. (c) Adjusted EBITDA is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net loss. Adjusted EBITDA represents earnings before interest expense, income taxes, depreciation, amortization, inventory impairment loss and land option write-offs and gain on extinguishment of debt.
Hovnanian Enterprises, Inc.
April 30, 2009
Interest Incurred, Expensed and Capitalized
(Dollars in Thousands)
Three Months Ended Six Months Ended
April 30, April 30,
------------------- -----------------
2009 2008 2009 2008
-------- -------- -------- --------
(Unaudited) (Unaudited)
Interest Capitalized at
Beginning of Period $176,258 $171,430 $170,107 $155,642
Plus Interest Incurred 47,588 41,206 101,098 86,122
Less Interest Expensed 44,564 35,034 91,923 64,162
--------- -------- -------- --------
Interest Capitalized at End
of Period (a) $179,282 $177,602 $179,282 $177,602
========= ======== ======== ========
(a) The Company incurred significant inventory impairments in recent
quarters, which are determined based on total inventory including
capitalized interest. However, the capitalized interest amounts are
shown gross before allocating any portion of impairments to
capitalized interest.
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands Except Share Amounts)
April 30, October 31, 2009 2008 ----------- ---------- ASSETS (unaudited) (1)
Homebuilding: Cash and cash equivalents $779,178 $838,207 --------- -------- Restricted cash and cash equivalents 19,026 4,324 --------- -------- Inventories - at the lower of cost or fair value: Sold and unsold homes and lots under development 893,577 1,342,584 --------- -------- Land and land options held for future development or sale 493,105 644,067 --------- -------- Consolidated inventory not owned: Specific performance options 33,443 10,610 Variable interest entities 38,185 77,022 Other options 53,218 84,799 --------- --------
Total consolidated inventory not owned 124,846 172,431 --------- ---------
Total inventories 1,511,528 2,159,082 --------- ---------
Investments in and advances to unconsolidated joint ventures 42,170 71,097 --------- ---------
Receivables, deposits, and notes 53,457 78,766 --------- ---------
Property, plant, and equipment - net 83,273 92,817 --------- ---------
Prepaid expenses and other assets 134,234 156,595 --------- ---------
Total homebuilding 2,622,866 3,400,888 ---------- ----------
Financial services: Cash and cash equivalents 3,958 9,849 Restricted cash 4,094 4,005 Mortgage loans held for sale or investment 59,273 90,729 Other assets 2,941 5,025 --------- ---------
Total financial services 70,266 109,608 --------- ---------
Income taxes receivable - including net deferred tax benefits - 126,826 --------- ---------
Total assets $2,693,132 $3,637,322 ========== ==========
(1) Derived from the audited balance sheet as of October 31, 2008.
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share Amounts)
April 30, October 31,
2009 2008
----------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY (unaudited) (1)
Homebuilding:
Nonrecourse land mortgages $820 $820
Accounts payable and other liabilities 319,739 420,695
Customers' deposits 22,315 28,676
Nonrecourse mortgages secured by
operating
properties 21,911 22,302
Liabilities from inventory not owned 89,463 135,077
------- --------
Total homebuilding 454,248 607,570
------- --------
Financial services:
Accounts payable and other liabilities 8,792 10,559
Mortgage warehouse line of credit 49,181 84,791
------- --------
Total financial services 57,973 95,350
------- --------
Notes payable:
Revolving credit agreement 100,000 -
Senior secured notes 624,474 594,734
Senior notes 1,066,919 1,511,071
Senior subordinated notes 196,030 400,000
Accrued interest 65,026 72,477
------- --------
Total notes payable 2,052,449 2,578,282
Income tax payable 40,427 -
------- --------
Total liabilities 2,605,097 3,281,202
Minority interest related to inventory
not owned 25,903 24,880
------- --------
Minority interest in consolidated
joint ventures 734 976
------- --------
Stockholders' equity:
Preferred stock, $.01 par value - authorized
100,000 shares; issued 5,600 shares at April
30, 2009 and at October 31, 2008 with a
liquidation preference of $140,000 135,299 135,299
Common stock, Class A, $.01 par
value - authorized 200,000,000 shares;
issued 74,250,353 shares at
April 30, 2009 and 73,803,879 shares
at October 31, 2008 (including 11,694,720
shares at April 30, 2009 and
October 31, 2008 held in Treasury) 743 738
Common stock, Class B, $.01 par value
convertible to Class A at time of sale) -
authorized 30,000,000 shares; issued
15,331,376 shares at April 30, 2009 and
15,331,494 shares at October 31, 2008
(including 691,748 shares at April 30, 2009
and October 31, 2008 held in Treasury) 153 153
Paid in capital - common stock 446,786 418,626
Accumulated deficit (406,326) (109,295)
Treasury stock - at cost (115,257) (115,257)
------- --------
Total stockholders' equity 61,398 330,264
------- --------
Total liabilities and stockholders'
equity $2,693,132 $3,637,322
========== ==========
(1) Derived from the audited balance sheet as of October 31, 2008.
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Per Share Data)
(Unaudited)
Three Months Ended Six Months Ended
April 30, April 30,
2009 2008 2009 2008
--------- ----------- ---------- -----------
Revenues:
Homebuilding:
Sale of homes $381,698 $755,684 $740,750 $1,807,502
Land sales and
other revenues 7,274 8,203 13,687 36,113
--------- ----------- ---------- -----------
Total
homebuilding 388,972 763,887 754,437 1,843,615
Financial services 9,027 12,552 17,346 26,525
--------- ----------- ---------- -----------
Total revenues 397,999 776,439 771,783 1,870,140
--------- ----------- ---------- -----------
Expenses:
Homebuilding:
Cost of sales,
excluding
interest 351,148 706,845 691,823 1,710,409
Cost of sales
interest 26,040 34,572 49,169 63,160
Inventory
impairment
loss and land
option
write-offs 310,194 245,860 420,375 336,028
--------- ----------- ---------- -----------
Total cost of
sales 687,382 987,277 1,161,367 2,109,597
Selling,
general and
administrative 60,822 97,646 131,866 197,815
--------- ----------- ---------- -----------
Total
homebuilding 748,204 1,084,923 1,293,233 2,307,412
Financial services 6,510 8,450 13,258 19,320
Corporate
general and
administrative 18,359 20,530 49,269 41,685
Other interest 18,524 462 42,754 1,002
Other operations 4,935 1,823 6,559 3,290
Intangible
amortization - 292 - 1,227
--------- ----------- ---------- -----------
Total expenses 796,532 1,116,480 1,405,073 2,373,936
-------- ----------- ---------- -----------
Gain on extinguishment
of debt 311,268 - 390,788 -
--------- ----------- ---------- -----------
Loss from
unconsolidated
joint ventures (10,094) (3,397) (32,683) (8,436)
--------- ----------- ---------- -----------
Loss before
income taxes (97,359) (343,438) (275,185) (512,232)
--------- ----------- ---------- -----------
State and
federal income
tax provision
(benefit):
State 21,221 11,942 21,776 14,225
Federal 41 (14,669) 70 (54,803)
--------- ----------- ---------- -----------
Total taxes 21,262 (2,727) 21,846 (40,578)
--------- ----------- ---------- -----------
Net loss $(118,621) $(340,711) $(297,031) $(471,654)
========= ========== ========== ===========
Per share data:
Basic and assuming
dilution:
Loss per common
share $(1.50) $(5.29) $(3.80) $(7.43)
Weighted average
number of common
shares outstanding 79,146 64,410 78,154 63,455
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(UNAUDITED)
Communities Under Development
Three Months -
4/30/2009
Net Contracts(1) Deliveries
Three Months Ended Three Months Ended
April 30, April 30,
--------------------------- -------------------------
2009 2008 % Change 2009 2008 % Change
--------------------------- -------------------------
Northeast
Home 227 334 (32.0)% 191 347 (45.0)%
Dollars $104,653 $140,651 (25.6)% $83,752 $168,590 (50.3)%
Avg.Price $461,026 $421,114 9.5% $438,492 $485,850 (9.7)%
Mid-Atlantic
Home 242 287 (15.7)% 199 337 (40.9)%
Dollars $87,208 $107,067 (18.5)% $70,887 $134,494 (47.3)%
Avg.Price $360,368 $373,056 (3.4)% $356,216 $399,092 (10.7)%
Midwest
Home 156 196 (20.4)% 114 257 (55.6)%
Dollars $33,498 $43,023 (22.1)% $23,887 $55,092 (56.6)%
Avg.Price $214,731 $219,500 (2.2)% $209,535 $214,366 (2.3)%
Southeast
Home 127 197 (35.5)% 141 444 (68.2)%
Dollars $31,073 $44,144 (29.6)% $32,834 $109,182 (69.9)%
Avg.Price $244,669 $224,076 9.2% $232,865 $245,905 (5.3)%
Southwest
Home 545 739 (26.3)% 520 645 (19.4)%
Dollars $109,971 $169,331 (35.1)% $113,514 $143,649 (21.0)%
Avg.Price $201,783 $229,137 (11.9)% $218,296 $222,712 (2.0)%
West
Home 289 473 (38.9)% 223 464 (51.9)%
Dollars $69,205 $142,561 (51.5)% $56,824 $144,677 (60.7)%
Avg.Price $239,464 $301,397 (20.5)% $254,816 $311,804 (18.3)%
Consolidated
Total
Home 1,586 2,226 (28.8)% 1,388 2,494 (44.3)%
Dollars $435,608 $646,777 (32.6)% $381,698 $755,684 (49.5)%
Avg.Price $274,659 $290,556 (5.5)% $274,999 $303,001 (9.2)%
Unconsolidated
Joint
Ventures
Home 61 205 (70.2)% 71 196 (63.8)%
Dollars $24,643 $81,114 (69.6)% $22,522 $70,013 (67.8)%
Avg.Price $403,967 $395,673 2.1% $317,211 $357,209 (11.2)%
Total
Home 1,647 2,431 (32.3)% 1,459 2,690 (45.8)%
Dollars $460,251 $727,891 (36.8)% $404,220 $825,697 (51.0)%
Avg.Price $279,448 $299,420 (6.7)% $277,053 $306,951 (9.7)%
DELIVERIES INCLUDE EXTRAS
Notes:
1) Net contracts are defined as new contracts signed during the period
for the purchase of homes, less cancellations of prior contracts.
Contract Backlog
April 30,
---------------------------
2009 2008 % Change
---------------------------
Northeast
Home 478 846 (43.5)%
Dollars $211,943 $406,002 (47.8)%
Avg.Price $443,395 $479,908 (7.6)%
Mid-Atlantic
Home 381 607 (37.2)%
Dollars $155,537 $280,566 (44.6)%
Avg.Price $408,234 $462,216 (11.7)%
Midwest
Home 324 589 (45.0)%
Dollars $66,064 $117,474 (43.8)%
Avg.Price $203,901 $199,447 2.2%
Southeast
Home 109 430 (74.7)%
Dollars $30,106 $122,663 (75.5)%
Avg.Price $276,202 $285,263 (3.2)%
Southwest
Home 357 699 (48.9)%
Dollars $75,153 $163,929 (54.2)%
Avg.Price $210,513 $234,521 (10.2)%
West
Home 209 406 (48.5)%
Dollars $53,973 $137,054 (60.6)%
Avg.Price $258,244 $337,569 (23.5)%
Consolidated
Total
Home 1,858 3,577 (48.1)%
Dollars $592,776 $1,227,688 (51.7)%
Avg.Price $319,040 $343,217 (7.0)%
Unconsolidated
Joint
Ventures
Home 221 389 (43.2)%
Dollars $147,587 $197,607 (25.3)%
Avg.Price $667,814 $507,987 31.5%
Total
Home 2,079 3,966 (47.6)%
Dollars $740,363 $1,425,295 (48.1)%
Avg.Price $356,114 $359,378 (0.9)%
HOVNANIAN ENTERPRISES, INC. (DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) (UNAUDITED)
Communities Under Development Six Months - 4/30/2009 Net Contracts(1) Deliveries Six Months Ended Six Months Ended April 30, April 30, ----------------------------- ------------------------- 2009 2008 % Change 2009 2008 % Change ----------------------------- -------------------------
Northeast Home 366 532 (31.2)% 385 661 (41.8)% Dollars $169,998 $224,067 (24.1)% $169,988 $328,936 (48.3)% Avg.Price $464,475 $421,180 10.3% $441,527 $497,634 (11.3)% Mid-Atlantic Home 378 488 (22.5)% 382 634 (39.7)% Dollars $129,467 $180,491 (28.3)% $139,882 $260,052 (46.2)% Avg.Price $342,505 $369,859 (7.4)% $366,183 $410,177 (10.7)% Midwest Home 260 298 (12.8)% 227 468 (51.5)% Dollars $52,334 $61,760 (15.3)% $50,760 $101,672 (50.1)% Avg.Price $201,285 $207,248 (2.9)% $223,612 $217,248 2.9% Southeast Home 244 352 (30.7)% 298 2,073 (85.6)% Dollars $51,136 $86,567 (40.9)% $66,849 $502,364 (86.7)% Avg.Price $209,574 $245,926 (14.8)% $224,326 $242,337 (7.4)% Southwest Home 827 1,284 (35.6)% 890 1,336 (33.4)% Dollars $170,468 $293,716 (42.0)% $200,119 $307,833 (35.0)% Avg.Price $206,129 $228,750 (9.9)% $224,853 $230,414 (2.4)% West Home 472 783 (39.7)% 414 926 (55.3)% Dollars $99,724 $257,966 (61.3)% $113,152 $306,645 (63.1)% Avg.Price $211,280 $329,460 (35.9)% $273,314 $331,150 (17.5)% Consolidated Total Home 2,547 3,737 (31.8)% 2,596 6,098 (57.4)% Dollars $673,127 $1,104,567 (39.1)% $740,750 $1,807,502 (59.0)% Avg.Price $264,282 $295,576 (10.6)% $285,343 $296,409 (3.7)% Unconsolidated Joint Ventures Home 104 313 (66.8)% 146 351 (58.4)% Dollars $38,765 $133,861 (71.0)% $47,034 $136,581 (65.6)% Avg.Price $372,740 $427,671 (12.8)% $322,151 $389,120 (17.2)% Total Home 2,651 4,050 (34.5)% 2,742 6,449 (57.5)% Dollars $711,892 $1,238,428 (42.5)% $787,784 $1,944,083 (59.5)% Avg.Price $268,537 $305,785 (12.2)% $287,303 $301,455 (4.7)%
DELIVERIES INCLUDE EXTRAS Notes: (1) Net contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.
Contract Backlog
April 30,
----------------------------
2009 2008 % Change
----------------------------
Northeast
Home 478 846 (43.5)%
Dollars $211,943 $406,002 (47.8)%
Avg.Price $443,395 $479,908 (7.6)%
Mid-Atlantic
Home 381 607 (37.2)%
Dollars $155,537 $280,566 (44.6)%
Avg.Price $408,234 $462,216 (11.7)%
Midwest
Home 324 589 (45.0)%
Dollars $66,064 $117,474 (43.8)%
Avg.Price $203,901 $199,447 2.2%
Southeast
Home 109 430 (74.7)%
Dollars $30,106 $122,663 (75.5)%
Avg.Price $276,202 $285,263 (3.2)%
Southwest
Home 357 699 (48.9)%
Dollars $75,153 $163,929 (54.2)%
Avg.Price $210,513 $234,521 (10.2)%
West
Home 209 406 (48.5)%
Dollars $53,973 $137,054 (60.6)%
Avg.Price $258,244 $337,569 (23.5)%
Consolidated
Total
Home 1,858 3,577 (48.1)%
Dollars $592,776 $1,227,688 (51.7)%
Avg.Price $319,040 $343,217 (7.0)%
Unconsolidated
Joint Ventures
Home 221 389 (43.2)%
Dollars $147,587 $197,607 (25.3)%
Avg.Price $667,814 $507,987 31.5%
Total
Home 2,079 3,966 (47.6)%
Dollars $740,363 $1,425,295 (48.1)%
Avg.Price $356,114 $359,378 (0.9)%
SOURCE Hovnanian Enterprises, Inc.
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