Hovnanian Enterprises Reports Fiscal 2008 Results
Inc. (NYSE: HOV), a leading national homebuilder, reported results for its
fourth quarter and fiscal year ended
Cash and Inventory as of
— Cash flow during the fourth quarter of fiscal 2008 was positive
million
balance on the revolving credit facility was zero.
— The total land position, as of
lots compared to
and 19,640 optioned lots.
— As of
16,464 and owned lots totaled 23,439. The total land position of 39,903 lots
represents a 67% decline from the peak total land position at
— Started unsold homes and models declined 43%, from 2,822 at
2007
Results for the Twelve and Three month Periods ended
— Total revenues were
billion
million
— Deliveries, excluding unconsolidated joint ventures, were 10,577 homes
for the full year, a 22% decline from 13,564 home deliveries last year. For
the fourth quarter of 2008, deliveries were 2,294 homes, excluding
unconsolidated joint ventures, a decrease of 42% from 3,969 home deliveries in
the fiscal 2007 fourth quarter.
— The number of net contracts for fiscal 2008, excluding unconsolidated
joint ventures, decreased 41% to 6,546 homes compared with the prior year.
— The number of net contracts for the fourth quarter of fiscal 2008,
excluding unconsolidated joint ventures, declined 56% to 1,225 homes compared
with last year’s fourth quarter. The fiscal 2007 fourth quarter is a
difficult comparison because it includes approximately 1,500 “Deal of the
Century” promotion net contracts. Excluding the “Deal of the Century”
promotion net contracts from the fourth quarter of fiscal 2007, the number of
net contracts for the fourth quarter of 2008 declined 4%.
— The cancellation rate, excluding unconsolidated joint ventures, for the
fourth quarter of fiscal 2008 was 42%, compared with the rate of 40% in the
previous year’s fourth quarter.
— Pre-tax land-related charges and intangible impairments during fiscal
2008 were
offs of predevelopment costs and land deposits of
impairments of
well as
impairment charges and the write down of our investments in certain
unconsolidated joint ventures.
— Pre-tax land-related charges and intangible impairments during the
fourth quarter of fiscal 2008 were
of
impairments of
portion of write-offs and impairment charges and the write down of our
investments in certain unconsolidated joint ventures.
— Excluding land-related charges and intangible impairments, the pre-tax
loss was
and three month periods ended
charges and intangible impairments, the pre-tax loss was
of fiscal 2008 and
— The FAS 109 current and deferred tax valuation allowance charge to
earnings was
fourth quarter of 2008. The FAS 109 charge was for GAAP purposes only and is
a non-cash valuation allowance against the current and deferred tax asset.
For tax purposes, the tax deductions associated with the tax assets may be
carried forward for 20 years.
— For the twelve month period ended
available to common stockholders was
compared to a
same period a year ago.
— For the fourth quarter of fiscal 2008, the after tax loss available to
common stockholders was
with a net loss of
quarter of fiscal 2007.
Other Key Operating Data:
— Contract backlog, as of
joint ventures, was 1,907 homes with a sales value of
decrease of 68% compared to
— At
excluding unconsolidated joint ventures, a decline of 147 active communities,
or 34%, from
— Homebuilding gross margin, before interest expense included in cost of
sales, was 6.7% in fiscal 2008 and 4.7% for the fourth quarter of 2008,
compared to 15.1% and 10.9%, respectively, in the same periods last year.
— Pretax income from Financial Services declined 40% compared to the
previous year to
the same period last year to
2008.
— For all of fiscal 2008, deliveries through unconsolidated joint
ventures were 704 homes, compared with 1,364 homes during fiscal 2007. During
the fourth quarter of fiscal 2008, home deliveries through unconsolidated
joint ventures were 185 homes, compared with 471 homes in the fourth quarter
of fiscal 2007.
Comments From Management:
“Since mid-September, the housing market has deteriorated in lock-step
with the widening financial crisis and declines in broader economic
conditions,” commented
of the Company. “Despite the headwinds we faced, we ended the year with
million
before conditions worsened. During the first quarter of fiscal 2009, we
reduced our debt by
of existing unsecured notes were exchanged for
notes maturing in 2017. We will continue to explore additional debt
exchanges, purchases and other opportunistic transactions to reduce our debt.
As we look forward, our primary focus remains on cash flow, even at the
expense of lower margins,” stated Mr. Hovnanian.
“After three years of an unprecedented housing downturn and the
deteriorating state of the U.S. economy, we along with other public and
private homebuilders, the National Association of Homebuilders, the Business
Roundtable and the National Association of Manufacturers, among others, are
seeking a housing stimulus package from the Federal Government to assist
buyers of both existing and new homes. The housing industry typically leads
the U.S. economy into and out of recessions. It is important that a housing
stimulus package is passed in order for a turnaround to occur in housing and
the U.S. economy overall. More information about the coalition and its
initiatives can be found at http://www.fixhousingfirst.com,” concluded Mr.
Hovnanian.
Webcast Information:
Hovnanian Enterprises will webcast its fiscal 2008 fourth quarter
financial results conference call at
17, 2008
section of Hovnanian Enterprises’ Web site at http://www.khov.com. For those
who are not available to listen to the live webcast, an archive of the
broadcast will be available under the “Audio Archives” section of the Investor
Relations page on the Hovnanian Web site at http://www.khov.com. The archive
will be available for 12 months.
About Hovnanian Enterprises:
Hovnanian Enterprises, Inc., founded in 1959 by
Chairman, is headquartered in
nation’s largest homebuilders with operations in
Jersey
the trade names K. Hovnanian(R) Homes(R), Matzel & Mumford, Brighton Homes,
Parkwood Builders, Cambridge Homes, Town & Country Homes,
Home Builders of
Hovnanian’s(R) Four Seasons communities, the Company is also one of the
nation’s largest builders of active adult homes.
Additional information on Hovnanian Enterprises, Inc., including a summary
investment profile and the Company’s 2007 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 (“Adjusted EBITDA”) are not U.S. generally accepted
accounting principle (GAAP) financial measures. The most directly comparable
GAAP financial measure is net income (loss). The reconciliation of EBITDA and
Adjusted EBITDA to net income (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 fourth quarter of
2008, cash flow was
activities excluding the change in mortgage notes receivable (
from cash flow provided by operating activities less the change in mortgage
notes receivable of
investing activities. For the full 2008 fiscal year, cash flow was
million
mortgage notes receivable (
activities less the change in mortgage notes receivable of
(Loss) Income Before Income Taxes Excluding Land Related Charges and
Intangible Impairments is a non-GAAP financial measure. The most directly
comparable GAAP financial measure is Loss Before Income Taxes. The
reconciliation of (Loss) Income Before Income Taxes Excluding Land Related
Charges and Intangible Impairments 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
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
10Q per the quarter ended
Hovnanian Enterprises, Inc.
October 31, 2008
Statements of Consolidated Operations
(Dollars in Thousands, Except Per Share)
Three Months Ended Twelve Months Ended
October 31, October 31,
---------------------- -----------------------
2008 2007 2008 2007
--------- ---------- ---------- ----------
(Unaudited) (Unaudited)
Total Revenues $721,430 $1,391,869 $3,308,111 $4,798,921
Costs and Expenses(a) 1,150,649 1,779,351 4,439,559 5,417,664
Loss from Unconsolidated
Joint Ventures (27,244) (25,289) (36,600) (28,223)
--------- ---------- ---------- ----------
Loss Before Income Taxes (456,463) (412,771) (1,168,048) (646,966)
Income Tax (Benefit)
Provision (6,004) 53,822 (43,458) (19,847)
--------- ---------- ---------- ----------
Net Loss (450,459) (466,593) (1,124,590) (627,119)
--------- ---------- ---------- ----------
Less: Preferred Stock
Dividends - 2,668 - 10,674
--------- ---------- ---------- ----------
Net Loss Available to
Common Stockholders $(450,459) $(469,261) $(1,124,590) $(637,793)
========= ========== ========== ==========
Per Share Data:
Basic:
Loss Per Common Share $(5.79) $(7.42) $(16.04) $(10.11)
Weighted Average Number
of Common Shares
Outstanding 77,747 63,207 70,131 63,079
Assuming Dilution:
Loss Per Common Share $(5.79) $(7.42) $(16.04) $(10.11)
Weighted Average Number
of Common Shares
Outstanding (b) 77,747 63,207 70,131 63,079
(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.
October 31, 2008
Reconciliation of (Loss) Income Before Income Taxes Excluding Land-Related
Charges and Intangible Impairments to Loss Before Income Taxes
(Dollars in Thousands)
Three Months Ended Twelve Months Ended
October 31, October 31,
--------------------- -----------------------
2008 2007 2008 2007
--------- ---------- ----------- ----------
(Unaudited) (Unaudited)
Loss Before Income Taxes $(456,463) $(412,771) $(1,168,048) $(646,966)
Inventory Impairment Loss
and Land Option Write-Offs 263,159 273,353 710,120 457,773
Goodwill and Definite Life
Intangible Impairments 35,363 77,556 35,363 135,206
Unconsolidated Joint Venture
Investment, Intangible and
Land-Related Charges 21,365 31,800 31,242 33,100
--------- ---------- ----------- ----------
(Loss) Income Before Income
Taxes Excluding Land-Related
Charges and Intangible
Impairments $(136,576) $(30,062) $(391,323) $(20,887)
========= ========== =========== ==========
Hovnanian Enterprises, Inc.
October 31, 2008
Gross Margin
(Dollars in Thousands)
Homebuilding Gross Homebuilding Gross
Margin Margin
Three Months Ended Twelve Months Ended
October 31, October 31,
--------------------- -----------------------
2008 2007 2008 2007
-------- ---------- ---------- ----------
(Unaudited) (Unaudited)
Sale of Homes $677,661 $1,308,219 $3,177,853 $4,581,375
Cost of Sales, Excluding
Interest(a) 645,690 1,165,509 2,965,886 3,890,474
-------- ---------- ---------- ----------
Homebuilding Gross Margin,
Excluding Interest 31,971 142,710 211,967 690,901
Homebuilding Cost of
Sales Interest 41,192 45,598 136,439 130,825
-------- ---------- ---------- ----------
Homebuilding Gross Margin,
Including Interest $(9,221) $97,112 $75,528 $560,076
======== ========== ========== ==========
Gross Margin Percentage,
Excluding Interest 4.7% 10.9% 6.7% 15.1%
Gross Margin Percentage,
Including Interest (1.4%) 7.4% 2.4% 12.2%
Land Sales Gross Margin Land Sales Gross Margin
Three Months Ended Twelve Months Ended
October 31, October 31,
--------------------- -----------------------
2008 2007 2008 2007
-------- ---------- ---------- ----------
(Unaudited) (Unaudited)
Land Sales $26,333 $42,107 $57,776 $107,955
Cost of Sales,
Excluding Interest(a) 19,270 36,094 45,016 87,179
-------- ---------- ---------- ----------
Land Sales Gross Margin,
Excluding Interest 7,063 6,013 12,760 20,776
Land Sales Interest 6,136 874 9,522 1,132
-------- ---------- ---------- ----------
Land Sales Gross Margin,
Including Interest $927 $5,139 $3,238 $19,644
======== ========== ========== ==========
(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 Consolidated
Statements of Operations.
Hovnanian Enterprises, Inc.
October 31, 2008
Reconciliation of Adjusted EBITDA to Net Loss
(Dollars in Thousands)
Three Months Ended Twelve Months Ended
October 31, October 31,
---------------------- ------------------------
2008 2007 2008 2007
--------- --------- ----------- ---------
(Unaudited) (Unaudited)
Net Loss $(450,459) $(466,593) $(1,124,590) $(627,119)
Income Tax (Benefit)
Provision (6,004) 53,822 (43,458) (19,847)
Interest Expense 66,046 47,223 176,336 141,754
--------- --------- ----------- ---------
EBIT(a) (390,417) (365,548) (991,712) (505,212)
Depreciation 4,823 4,754 18,426 18,283
Amortization of Debt Costs 1,643 503 3,963 2,576
Amortization and Impairment
of Intangibles and
Goodwill 35,363 83,700 36,883 162,124
--------- --------- ----------- ---------
EBITDA(b) (348,588) (276,591) (932,440) (322,229)
Inventory Impairment Loss
and Land Option
Write-offs 263,159 273,353 710,120 457,773
--------- --------- ----------- ---------
Adjusted EBITDA(c) $(85,429) $(3,238) $(222,320) $135,544
========= ========= =========== =========
Interest Incurred $53,411 $46,262 $190,801 $194,547
Adjusted EBITDA to
Interest Incurred (1.60) (0.07) (1.17) 0.70
(a) EBIT is a non-GAAP financial measure. The comparable GAAP financial
measure is net income (loss). EBIT represents earnings before interest
expense and income taxes.
(b) EBITDA is a non-GAAP financial measure. The comparable GAAP financial
measure is net income (loss). EBITDA represents earnings before
interest expense, income taxes, depreciation and amortization.
(c) Adjusted EBITDA is a non-GAAP financial measure. The comparable GAAP
financial measure is net income (loss). Adjusted EBITDA represents
earnings before interest expense, income taxes, depreciation,
amortization and inventory impairment loss and land option write-offs.
Hovnanian Enterprises, Inc.
October 31, 2008
Interest Incurred, Expensed and Capitalized
(Dollars in Thousands)
Three Months Ended Twelve Months Ended
October 31, October 31,
-------------------- --------------------
2008 2007 2008 2007
-------- -------- -------- --------
(Unaudited) (Unaudited)
Interest Capitalized at
Beginning of Period $182,742 $156,603 $155,642 $102,849
Plus Interest Incurred 53,411 46,262 190,801 194,547
Less Interest Expensed 66,046 47,223 176,336 141,754
-------- -------- -------- --------
Interest Capitalized at
End of Period (a) $170,107 $155,642 $170,107 $155,642
======== ======== ======== ========
(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 the impairments to
capitalized interest.
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share Amounts)
October 31, 2008 October 31, 2007
ASSETS
Homebuilding:
Cash and cash equivalents $838,207 $12,275
---------- ----------
Restricted cash 4,324 6,594
---------- ----------
Inventories-at the lower of cost or
fair value:
Sold and unsold homes and lots under
development 1,342,584 2,792,436
---------- ----------
Land and land options held for future
development or sale 644,067 446,135
---------- ----------
Consolidated inventory not owned:
Specific performance options 10,610 12,123
---------- ----------
Variable interest entities 77,022 139,914
---------- ----------
Other options 84,799 127,726
---------- ----------
Total consolidated inventory not owned 172,431 279,763
---------- ----------
Total inventories 2,159,082 3,518,334
---------- ----------
Investments in and advances to
unconsolidated joint ventures 71,097 176,365
---------- ----------
Receivables, deposits, and notes 78,766 109,856
---------- ----------
Property, plant, and equipment-net 92,817 106,792
---------- ----------
Prepaid expenses and other assets 156,595 174,032
---------- ----------
Goodwill - 32,658
---------- ----------
Definite life intangibles - 4,224
---------- ----------
Total homebuilding 3,400,888 4,141,130
---------- ----------
Financial services:
Cash and cash equivalents 9,849 3,958
---------- ----------
Restricted cash 4,005 11,572
---------- ----------
Mortgage loans held for sale or investment 90,729 182,627
---------- ----------
Other assets 5,025 6,851
---------- ----------
Total financial services 109,608 205,008
---------- ----------
Income taxes receivable - including net
deferred tax benefits 126,826 194,410
---------- ----------
Total assets $3,637,322 $4,540,548
========== ==========
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share Amounts)
October 31, October 31,
2008 2007
LIABILITIES AND STOCKHOLDERS' EQUITY
Homebuilding:
Nonrecourse land mortgages $820 $9,430
Accounts payable and other liabilities 420,695 515,422
Customers' deposits 28,676 65,221
Nonrecourse mortgages secured by operating
properties 22,302 22,985
Liabilities from inventory not owned 135,077 189,935
--------- ---------
Total homebuilding 607,570 802,993
--------- ---------
Financial services:
Accounts payable and other liabilities 10,559 19,597
Mortgage warehouse line of credit 84,791 171,133
--------- ---------
Total financial services 95,350 190,730
--------- ---------
Notes payable:
Revolving credit agreements - 206,750
Senior secured notes 594,734 -
Senior notes 1,511,071 1,510,600
Senior subordinated notes 400,000 400,000
Accrued interest 72,477 43,944
--------- ---------
Total notes payable 2,578,282 2,161,294
--------- ---------
Total liabilities 3,281,202 3,155,017
--------- ---------
Minority interest from inventory not owned 24,880 62,238
--------- ---------
Minority interest from consolidated joint
ventures 976 1,490
--------- ---------
Stockholders' equity:
Preferred stock, $.01 par value-authorized
100,000 shares; issued 5,600 shares with a
liquidation preference of $140,000, at
October 31, 2008 and October 31, 2007 135,299 135,299
Common stock, Class A, $.01 par
value-authorized 200,000,000 shares; issued
73,803,879 shares at October 31, 2008; and
59,263,887 shares at October 31, 2007
(including 11,694,720 shares at October 31,
2008 and October 31, 2007 held in Treasury) 738 593
Common stock, Class B, $.01 par value
(convertible to Class A at time of
sale)-authorized 30,000,000 shares; issued
15,331,494 shares at October 31, 2008; and
issued 15,338,840 shares at October 31, 2007
(including 691,748 shares at October 31, 2008
and October 31, 2007 held in Treasury) 153 153
Paid in capital-common stock 418,626 276,998
(Accumulated deficit)/retained earnings (109,295) 1,024,017
Treasury stock-at cost (115,257) (115,257)
--------- ---------
Total stockholders' equity 330,264 1,321,803
--------- ---------
Total liabilities and stockholders' equity $3,637,322 $4,540,548
========= =========
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Share Amounts)
Three Months Ended Year Ended
October 31, October 31, October 31, October 31,
2008 2007 2008 2007
Revenues:
Homebuilding:
Sale of homes $677,661 $1,308,219 $3,177,853 $4,581,375
Land sales and other
revenues 32,176 64,150 78,039 141,355
---------- ---------- ---------- ----------
Total homebuilding 709,837 1,372,369 3,255,892 4,722,730
Financial services 11,593 19,500 52,219 76,191
---------- ---------- ---------- ----------
Total revenues 721,430 1,391,869 3,308,111 4,798,921
---------- ---------- ---------- ----------
Expenses:
Homebuilding:
Cost of sales,
excluding interest 664,960 1,201,603 3,010,902 3,977,653
Cost of sales interest 47,328 46,472 145,961 131,957
Inventory impairment loss
and land option
write-offs 263,159 273,353 710,120 457,773
---------- ---------- ---------- ----------
Total cost of sales 975,447 1,521,428 3,866,983 4,567,383
Selling, general and
administrative 89,249 137,558 377,068 539,362
---------- ---------- ---------- ----------
Total homebuilding
expenses 1,064,696 1,658,986 4,244,051 5,106,745
Financial services 8,013 12,444 35,567 48,321
Corporate general and
administrative 20,680 21,559 82,846 85,878
Other interest 18,718 751 30,375 9,797
Other operations 3,179 1,911 9,837 4,799
Goodwill and intangible
amortization and
impairment 35,363 83,700 36,883 162,124
---------- ---------- ---------- ----------
Total expenses 1,150,649 1,779,351 4,439,559 5,417,664
---------- ---------- ---------- ----------
Loss from unconsolidated
joint ventures (27,244) (25,289) (36,600) (28,223)
---------- ---------- ---------- ----------
Loss before income taxes (456,463) (412,771) (1,168,048) (646,966)
---------- ---------- ---------- ----------
State and federal income
tax(benefit)/provision:
State (1,940) 6,970 13,760 7,088
Federal (4,064) 46,852 (57,218) (26,935)
---------- ---------- ---------- ----------
Total taxes (6,004) 53,822 (43,458) (19,847)
---------- ---------- ---------- ----------
Net loss (450,459) (466,593) (1,124,590) (627,119)
Less: preferred stock
dividends - 2,668 - 10,674
---------- ---------- ---------- ----------
Net loss available to
common stockholders $(450,459) $(469,261) $(1,124,590) $(637,793)
========== ========== ========== ==========
Per share data:
Basic:
Loss per common share $(5.79) $(7.42) $(16.04) $(10.11)
Weighted average number
of common shares
outstanding 77,747 63,207 70,131 63,079
Assuming dilution:
Loss per common share $(5.79) $(7.42) $(16.04) $(10.11)
Weighted average number
of common shares
outstanding 77,747 63,207 70,131 63,079
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(UNAUDITED)
Communities Under Development
Three Months - 10/31/2008
Net Contracts(1) Deliveries
Three Months Ended Three Months Ended
October 31, October 31,
-------------------------- --------------------------
2008 2007 % Change 2008 2007 % Change
------------------------------------------------------
Northeast
Home 168 554 (69.68%) 404 645 (37.36%)
Dollars 66,381 218,424 (69.61%) 181,158 298,039 (39.22%)
Avg. Price 395,137 394,268 0.22% 448,411 462,076 (2.96%)
Mid-Atlantic
Home 157 333 (52.85%) 342 595 (42.52%)
Dollars 50,477 119,188 (57.65%) 133,121 258,178 (48.44%)
Avg. Price 321,510 357,920 (10.17%) 389,243 433,913 (10.29%)
Southeast
Home 91 308 (70.45%) 228 594 (61.62%)
Dollars 13,314 76,451 (82.59%) 51,979 155,560 (66.59%)
Avg. Price 146,308 248,216 (41.06%) 227,978 261,886 (12.95%)
Midwest
Home 84 355 (76.34%) 267 358 (25.42%)
Dollars 18,866 71,678 (73.68%) 57,084 81,138 (29.65%)
Avg. Price 224,583 201,910 11.23% 213,798 226,642 (5.67%)
West
Home 257 480 (46.46%) 369 648 (43.06%)
Dollars 66,032 165,023 (59.99%) 100,609 259,634 (61.25%)
Avg. Price 256,930 343,798 (25.27%) 272,653 400,670 (31.95%)
Southwest
Home 468 751 (37.68%) 684 1,129 (39.42%)
Dollars 103,626 168,440 (38.48%) 153,710 255,670 (39.88%)
Avg. Price 221,425 224,288 (1.28%) 224,722 226,457 (0.77%)
Consolidated
Total
Home 1,225 2,781 (55.95%) 2,294 3,969 (42.20%)
Dollars 318,696 819,204 (61.10%) 677,661 1,308,219 (48.20%)
Avg. Price 260,161 294,572 (11.68%) 295,406 329,609 (10.38%)
Unconsolidated
Joint Ventures
Home 122 161 (24.22%) 185 471 (60.72%)
Dollars 44,770 55,750 (19.70%) 66,217 205,416 (67.76%)
Avg. Price 366,959 346,273 5.97% 357,932 436,128 (17.93%)
Total
Home 1,347 2,942 (54.21%) 2,479 4,440 (44.17%)
Dollars 363,466 874,954 (58.46%) 743,878 1,513,635 (50.85%)
Avg. Price 269,834 297,401 (9.27%) 300,072 340,909 (11.98%)
Contract Backlog
October 31,
-------------------------------------
2008 2007 % Change
-------------------------------------
Northeast
Home 497 975 (49.03%)
Dollars 215,604 503,445 (57.17%)
Avg. Price 433,811 516,354 (15.99%)
Mid-Atlantic
Home 385 753 (48.87%)
Dollars 165,871 358,778 (53.77%)
Avg. Price 430,834 476,465 (9.58%)
Southeast
Home 163 2,151 (92.42%)
Dollars 45,657 614,575 (92.57%)
Avg. Price 280,104 285,716 (1.96%)
Midwest
Home 291 759 (61.66%)
Dollars 61,108 153,171 (60.10%)
Avg. Price 209,993 201,806 4.06%
West
Home 151 549 (72.50%)
Dollars 57,642 205,716 (71.98%)
Avg. Price 381,735 374,710 1.87%
Southwest
Home 420 751 (44.07%)
Dollars 100,305 174,206 (42.42%)
Avg. Price 238,819 231,966 2.95%
Consolidated Total
Home 1,907 5,938 (67.88%)
Dollars 646,187 2,009,891 (67.85%)
Avg. Price 338,850 338,479 0.11%
Unconsolidated Joint
Ventures
Home 263 427 (38.41%)
Dollars 157,167 202,422 (22.36%)
Avg. Price 597,593 474,056 26.06%
Total
Home 2,170 6,365 (65.91%)
Dollars 803,354 2,212,313 (63.69%)
Avg. Price 370,209 347,575 6.51%
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.
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(UNAUDITED)
Communities Under Development
Twelve Months - 10/31/2008
Net Contracts(1) Deliveries
Twelve Months Ended Twelve Months Ended
October 31, October 31,
-------------------------- --------------------------
2008 2007 % Change 2008 2007 % Change
-------------------------------------------------------
Northeast
Home 934 1,756 (46.8%) 1,412 1,999 (29.4%)
Dollars 381,401 802,459 (52.5%) 679,488 935,476 (27.4%)
Avg. Price 408,352 456,981 (10.6%) 481,224 467,972 2.8%
Mid-Atlantic
Home 880 1,545 (43.0%) 1,248 1,926 (35.2%)
Dollars 313,405 677,581 (53.8%) 509,009 885,599 (42.5%)
Avg. Price 356,142 438,564 (18.8%) 407,860 459,813 (11.3%)
Southeast
Home 584 1,109 (47.3%) 2,572 2,771 (7.2%)
Dollars 132,245 312,070 (57.6%) 624,106 745,240 (16.3%)
Avg. Price 226,447 281,397 (19.5%) 242,654 268,943 (9.8%)
Midwest
Home 497 1,134 (56.2%) 965 1,043 (7.5%)
Dollars 106,887 248,744 (57.0%) 209,759 226,804 (7.5%)
Avg. Price 215,064 219,351 (2.0%) 217,367 217,453 (0.0%)
West
Home 1,366 2,067 (33.9%) 1,764 2,182 (19.2%)
Dollars 421,292 833,986 (49.5%) 551,978 959,682 (42.5%)
Avg. Price 308,413 403,476 (23.6%) 312,913 439,818 (28.9%)
Southwest
Home 2,285 3,395 (32.7%) 2,616 3,643 (28.2%)
Dollars 518,565 758,340 (31.6%) 603,513 828,574 (27.2%)
Avg. Price 226,944 223,370 1.6% 230,701 227,443 1.4%
Consolidated
Total
Home 6,546 11,006 (40.5%) 10,577 13,564 (22.0%)
Dollars 1,873,795 3,633,180 (48.4%) 3,177,853 4,581,375 (30.6%)
Avg. Price 286,251 330,109 (13.3%) 300,449 337,760 (11.0%)
Unconsolidated
Joint Ventures
Home 540 661 (18.3%) 704 1,364 (48.4%)
Dollars 221,858 211,797 4.8% 262,605 535,051 (50.9%)
Avg. Price 410,848 320,418 28.2% 373,018 392,266 (4.9%)
Total
Home 7,086 11,667 (39.3%) 11,281 14,928 (24.4%)
Dollars 2,095,653 3,844,977 (45.5%) 3,440,458 5,116,426 (32.8%)
Avg. Price 295,746 329,560 (10.3%) 304,978 342,740 (11.0%)
Contract Backlog
October 31,
------------------------------------
2008 2007 % Change
------------------------------------
Northeast
Home 497 975 (49.0%)
Dollars 215,604 503,445 (57.2%)
Avg. Price 433,811 516,354 (16.0%)
Mid-Atlantic
Home 385 753 (48.9%)
Dollars 165,871 358,778 (53.8%)
Avg. Price 430,834 476,465 (9.6%)
Southeast
Home 163 2,151 (92.4%)
Dollars 45,657 614,575 (92.6%)
Avg. Price 280,104 285,716 (2.0%)
Midwest
Home 291 759 (61.7%)
Dollars 61,108 153,171 (60.1%)
Avg. Price 209,993 201,806 4.1%
West
Home 151 549 (72.5%)
Dollars 57,642 205,716 (72.0%)
Avg. Price 381,735 374,710 1.9%
Southwest
Home 420 751 (44.1%)
Dollars 100,305 174,206 (42.4%)
Avg. Price 238,819 231,966 3.0%
Consolidated Total
Home 1,907 5,938 (67.9%)
Dollars 646,187 2,009,891 (67.9%)
Avg. Price 338,850 338,479 0.1%
Unconsolidated Joint
Ventures
Home 263 427 (38.4%)
Dollars 157,167 202,422 (22.4%)
Avg. Price 597,593 474,056 26.1%
Total
Home 2,170 6,365 (65.9%)
Dollars 803,354 2,212,313 (63.7%)
Avg. Price 370,209 347,575 6.5%
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.
SOURCE Hovnanian Enterprises, Inc.