Hovnanian Enterprises, Inc. | News Release | |
Contact: | J. Larry Sorsby | Jeffrey T. O’Keefe | ||
Executive Vice President & CFO | Director of Investor Relations | |||
732-747-7800 | 732-747-7800 |
HOVNANIAN ENTERPRISES REPORTS FIRST QUARTER FISCAL 2009 RESULTS
RED BANK, NJ, March 10, 2008 — Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, reported results for its first quarter ended January 31, 2009.
Results for the Three months ended January 31, 2009:
• | Total revenues were $373.8 million for the first three months of fiscal 2009 compared to $1.1 billion in the first quarter of the prior year. | |
• | Deliveries, excluding unconsolidated joint ventures, were 1,208 homes for the 2009 first quarter, a 66% decline from 3,604 homes in the 2008 first quarter, which included 1,345 homes in Fort Myers-Cape Coral during the first quarter of fiscal 2008. Excluding the Fort Myers-Cape Coral deliveries in last year’s first quarter, deliveries were down 47%. | |
• | The number of net contracts for the first quarter of fiscal 2009, excluding unconsolidated joint ventures, declined 36% to 961 homes compared with last year’s first quarter. | |
• | The cancellation rate, excluding unconsolidated joint ventures, for the first three months of fiscal 2009 was 31%, compared with the cancellation rate of 38% in the previous year’s first quarter and 42% in the fourth quarter of fiscal 2008. | |
• | During the first quarter of fiscal 2009, total debt was reduced by $94.7 million, net of discount amortization. Repurchases amounted to $53.2 million of notes at an average price of 27.6%. Exchanges amounted to $71.4 million of existing unsecured notes for $29.3 million of new secured notes maturing in 2017. As a result, a $79.5 million gain on extinguishment of debt was recorded during the first quarter of fiscal 2009. | |
• | Pre-tax land-related charges during the first quarter of fiscal 2009 were $132.0 million, including land impairments of $95.7 million, write-offs of predevelopment costs and land deposits of $14.5 million and $21.8 million representing the write down of our investments in certain unconsolidated joint ventures. | |
• | The pre-tax loss was $177.8 million for the 2009 first quarter. Excluding land-related charges and the gain from extinguishment of debt, the pre-tax loss was $125.3 million for the three months ended January 31, 2009. | |
• | The FAS 109 current and deferred tax valuation allowance charge to earnings was $79.4 million during the first quarter of 2009. This FAS 109 charge is a non-cash valuation allowance against |
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the tax assets for GAAP purposes. For tax purposes, the tax deductions associated with the tax assets may be carried forward for 20 years. |
• | For the first quarter of fiscal 2009, the after tax loss was $178.4 million, or $2.29 per common share, compared with a net loss of $130.9 million, or $2.07 per common share, in the prior year’s first quarter. |
Cash and Inventory as of January 31, 2009:
• | At January 31, 2009, homebuilding cash was $842.6 million and the balance on the revolving credit facility was zero. Cash flow during the first quarter of fiscal 2009 included a federal tax refund of $145.2 million. | |
• | The total land position, as of January 31, 2009, decreased by 21,501 lots compared to January 31, 2008, reflecting decreases of 4,414 owned lots and 17,087 optioned lots. | |
• | As of January 31, 2009, lots controlled under option contracts totaled 14,642 and owned lots totaled 22,958. The total land position of 37,600 lots represents a 69% decline from the peak total land position at April 30, 2006. | |
• | Started unsold homes and models declined 38%, to 1,445 at January 31, 2009 compared to 2,321 at January 31, 2008. |
Other Key Operating Data:
• | Contract backlog, as of January 31, 2009, excluding unconsolidated joint ventures, was 1,660 homes with a sales value of $531.0 million, a decrease of 61% compared to January 31, 2008. | |
• | At January 31, 2009, there were 245 active selling communities, excluding unconsolidated joint ventures, a decline of 159 active communities, or 39%, from January 31, 2008. | |
• | Homebuilding gross margin, before interest expense included in cost of sales, was 5.7% for the first quarter of 2009, compared to 6.7% in the fiscal 2008 first quarter and 4.7% in the 2008 fourth quarter. | |
• | Pretax income from Financial Services declined 49% compared to the same period last year to $1.6 million in the first quarter of fiscal 2009. | |
• | During the first quarter of fiscal 2009, home deliveries through unconsolidated joint ventures were 75 homes, compared with 155 homes in the first quarter of fiscal 2008. |
Comments From Management:
“The sales environment remained persistently challenging throughout the first quarter. While we have experienced a typical, seasonal pickup in traffic and sales since the middle of January, this increase is coming off of extremely low levels that have prevailed since mid-September,” commented Ara K. Hovnanian, President and Chief Executive Officer. “Much to our disappointment, there were no significant provisions designed to stimulate housing demand in the stimulus bill signed into law last
2
month or the subsequent plan to stem foreclosures. Given the lack of steps taken by the federal government to address housing demand, prospective homebuyers are still faced with making the decision to buy a home against an exceedingly difficult economic backdrop and we expect demand for all homes, both new and existing, to remain far below normalized levels.”
“Recent developments have only heightened our focus on cash flow generation and debt reduction,” continued Mr. Hovnanian. “In January, we received a $145 million federal income tax refund for fiscal 2008 and ended the first quarter with $843 million in cash. On the debt front, our near-term maturities are modest, consisting of $100 million original face value that comes due in January 2010 and no additional maturities until 2012. During the first quarter of 2009, we repurchased $53 million of face value of unsecured senior and senior subordinated notes for $15 million in cash.”
“Since the end of our first quarter, we purchased approximately $240 million of face value of unsecured senior notes and $75 million of face value of unsecured senior subordinated notes for approximately $105 million in cash, resulting in approximately a $210 million gain and a corresponding increase in stockholders’ equity. While we continue to explore debt exchanges and purchases, we remain committed to the preservation of our cash balances,” concluded Mr. Hovnanian.
Webcast Information:
Hovnanian Enterprises will webcast its fiscal 2009 first quarter financial results conference call at 11:00 a.m. E.T. on Wednesday, March 11, 2008. The webcast can be accessed live through the “Investor Relations” section of Hovnanian Enterprises’ Website athttp://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 Website athttp://www.khov.com. The archive will be available for 12 months.
About Hovnanian Enterprises:
Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, Chairman, is headquartered in Red Bank, New Jersey. The Company is one of the nation’s largest homebuilders with operations in Arizona, California, Delaware, Florida, Georgia, Illinois, Kentucky, Maryland, Minnesota, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia. The Company’s homes are marketed and sold under the trade names K. HovnanianÒ HomesÒ, Matzel & Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes, Oster Homes, First Home Builders of Florida and CraftBuilt Homes. As the developer of K. Hovnanian’sÒ 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 2008 annual report, can be accessed through the “Investor Relations” section of the Hovnanian Enterprises’ website athttp://www.khov.com. To be added to Hovnanian’s investor e-mail or fax lists, please send an e-mail toIR@khov.com or sign up athttp://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 principle (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.
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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’sForm 10-K for the year ended October 31, 2008.
(Financial Tables Follow)
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Hovnanian Enterprises, Inc.
January 31, 2009
Statements of Consolidated Operations
(Dollars in Thousands, Except Per Share)
January 31, 2009
Statements of Consolidated Operations
(Dollars in Thousands, Except Per Share)
Three Months Ended | ||||||||
January 31, | ||||||||
2009 | 2008 | |||||||
(Unaudited) | ||||||||
Total Revenues | $ | 373,784 | $ | 1,093,701 | ||||
Costs and Expenses (a) | 608,541 | 1,257,456 | ||||||
Gain on Extinguishment of Debt | 79,520 | — | ||||||
Loss from Unconsolidated Joint Ventures | (22,589 | ) | (5,039 | ) | ||||
Loss Before Income Taxes | (177,826 | ) | (168,794 | ) | ||||
Income Tax Provision (Benefit) | 584 | (37,851 | ) | |||||
Net Loss Attributable to Common Stockholders | $ | (178,410 | ) | $ | (130,943 | ) | ||
Per Share Data: | ||||||||
Basic: | ||||||||
Loss Per Common Share | $ | (2.29 | ) | $ | (2.07 | ) | ||
Weighted Average Number of Common Shares Outstanding | 78,043 | 63,358 | ||||||
Assuming Dilution: | ||||||||
Loss Per Common Share | $ | (2.29 | ) | $ | (2.07 | ) | ||
Weighted Average Number of Common Shares Outstanding (b) | 78,043 | 63,358 |
(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.
January 31, 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)
January 31, 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 | ||||||||
January 31, | ||||||||
2009 | 2008 | |||||||
(Unaudited) | ||||||||
Loss Before Income Taxes | $ | (177,826 | ) | $ | (168,794 | ) | ||
Inventory Impairment Loss and Land Option Write-Offs | 110,181 | 90,168 | ||||||
Unconsolidated Joint Venture Investment, Intangible and Land-Related Charges | 21,824 | 4,007 | ||||||
Gain on Extinguishment of Debt | (79,520 | ) | — | |||||
Loss Before Income Taxes Excluding | ||||||||
Land-Related Charges, Intangible Impairments and Gain on Extinguishment of Debt (a) | $ | (125,341 | ) | $ | (74,619 | ) | ||
(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. |
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Hovnanian Enterprises, Inc.
January 31, 2009
Gross Margin
(Dollars in Thousands)
January 31, 2009
Gross Margin
(Dollars in Thousands)
Homebuilding Gross Margin | ||||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2009 | 2008 | |||||||
(Unaudited) | ||||||||
Sale of Homes | $ | 359,052 | $ | 1,051,818 | ||||
Cost of Sales, Excluding Interest(a) | 338,430 | 981,568 | ||||||
Homebuilding Gross Margin, Excluding Interest | 20,622 | 70,250 | ||||||
Homebuilding Cost of Sales Interest | 22,604 | 27,963 | ||||||
Homebuilding Gross Margin, Including Interest | $ | (1,982 | ) | $ | 42,287 | |||
Gross Margin Percentage, Excluding Interest | 5.7 | % | 6.7 | % | ||||
Gross Margin Percentage, Including Interest | (0.6 | )% | 4.0 | % |
Land Sales Gross Margin | ||||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2009 | 2008 | |||||||
(Unaudited) | ||||||||
Land Sales | $ | 2,799 | $ | 22,753 | ||||
Cost of Sales, Excluding Interest(a) | 2,245 | 21,996 | ||||||
Land Sales Gross Margin, Excluding Interest | 554 | 757 | ||||||
Land Sales Interest | 525 | 625 | ||||||
Land Sales Gross Margin, Including Interest | $ | 29 | $ | 132 | ||||
(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. |
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Hovnanian Enterprises, Inc.
January 31, 2009
Reconciliation of Adjusted EBITDA to Net Loss
(Dollars in Thousands)
January 31, 2009
Reconciliation of Adjusted EBITDA to Net Loss
(Dollars in Thousands)
Three Months Ended | ||||||||
January 31, | ||||||||
2009 | 2008 | |||||||
(Unaudited) | ||||||||
Net Loss | $ | (178,410 | ) | $ | (130,943 | ) | ||
Income Tax Provision (Benefit) | 584 | (37,851 | ) | |||||
Interest Expense | 47,359 | 29,128 | ||||||
EBIT(a) | (130,467 | ) | (139,666 | ) | ||||
Depreciation | 5,298 | 4,597 | ||||||
Amortization of Debt Costs | 1,660 | 593 | ||||||
Amortization of Intangibles | — | 935 | ||||||
EBITDA(b) | (123,509 | ) | (133,541 | ) | ||||
Inventory Impairment Loss and Land Option Write-offs | 110,181 | 90,168 | ||||||
Gain on Extinguishment of Debt | (79,520 | ) | — | |||||
Adjusted EBITDA(c) | $ | (92,848 | ) | $ | (43,373 | ) | ||
Interest Incurred | $ | 53,510 | $ | 44,916 | ||||
Adjusted EBITDA to Interest Incurred | (1.74 | ) | (0.97 | ) |
(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.
January 31, 2009
Interest Incurred, Expensed and Capitalized
(Dollars in Thousands)
January 31, 2009
Interest Incurred, Expensed and Capitalized
(Dollars in Thousands)
Three Months Ended | ||||||||
January 31, | ||||||||
2009 | 2008 | |||||||
(Unaudited) | ||||||||
Interest Capitalized at Beginning of Period | $ | 170,107 | $ | 155,642 | ||||
Plus Interest Incurred | 53,510 | 44,916 | ||||||
Less Interest Expensed | 47,359 | 29,128 | ||||||
Interest Capitalized at End of Period (a) | $ | 176,258 | $ | 171,430 | ||||
(a) | The Company incurred significant inventory impairments in recent years, 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. |
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HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share Amounts)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share Amounts)
January 31, | October 31, | |||||||
2009 | 2008 | |||||||
(unaudited) | (1) | |||||||
ASSETS | ||||||||
Homebuilding: | ||||||||
Cash and cash equivalents | $ | 842,586 | $ | 838,207 | ||||
Restricted cash | 3,454 | 4,324 | ||||||
Inventories — at the lower of cost or fair value: | ||||||||
Sold and unsold homes and lots under development | 1,105,466 | 1,342,584 | ||||||
Land and land options held for future development or sale | 672,615 | 644,067 | ||||||
Consolidated inventory not owned: | ||||||||
Specific performance options | 10,035 | 10,610 | ||||||
Variable interest entities | 71,327 | 77,022 | ||||||
Other options | 59,882 | 84,799 | ||||||
Total consolidated inventory not owned | 141,244 | 172,431 | ||||||
Total inventories | 1,919,325 | 2,159,082 | ||||||
Investments in and advances to unconsolidated joint ventures | 49,498 | 71,097 | ||||||
Receivables, deposits, and notes | 61,463 | 78,766 | ||||||
Property, plant, and equipment — net | 88,048 | 92,817 | ||||||
Prepaid expenses and other assets | 149,628 | 156,595 | ||||||
Total homebuilding | 3,114,002 | 3,400,888 | ||||||
Financial services: | ||||||||
Cash and cash equivalents | 6,607 | 9,849 | ||||||
Restricted cash | 4,361 | 4,005 | ||||||
Mortgage loans held for sale or investment | 83,665 | 90,729 | ||||||
Other assets | 2,845 | 5,025 | ||||||
Total financial services | 97,478 | 109,608 | ||||||
Income taxes receivable — including net deferred tax benefits | — | 126,826 | ||||||
Total assets | $ | 3,211,480 | $ | 3,637,322 | ||||
(1) | Derived from the audited balance sheet as of October 31, 2008. |
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HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share Amounts)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share Amounts)
January 31, | October 31, | |||||||
2009 | 2008 | |||||||
(unaudited) | (1) | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Homebuilding: | ||||||||
Nonrecourse land mortgages | $ | 820 | $ | 820 | ||||
Accounts payable and other liabilities | 315,194 | 420,695 | ||||||
Customers’ deposits | 23,912 | 28,676 | ||||||
Nonrecourse mortgages secured by operating properties | 22,108 | 22,302 | ||||||
Liabilities from inventory not owned | 110,465 | 135,077 | ||||||
Total homebuilding | 472,499 | 607,570 | ||||||
Financial services: | ||||||||
Accounts payable and other liabilities | 8,840 | 10,559 | ||||||
Mortgage warehouse line of credit | 75,446 | 84,791 | ||||||
Total financial services | 84,286 | 95,350 | ||||||
Notes payable: | ||||||||
Senior secured notes | 624,251 | 594,734 | ||||||
Senior notes | 1,410,758 | 1,511,071 | ||||||
Senior subordinated notes | 376,135 | 400,000 | ||||||
Accrued interest | 36,051 | 72,477 | ||||||
Total notes payable | 2,447,195 | 2,578,282 | ||||||
Income tax payable | 18,954 | — | ||||||
Total liabilities | 3,022,934 | 3,281,202 | ||||||
Minority interest related to inventory not owned | 19,860 | 24,880 | ||||||
Minority interest in consolidated joint ventures | 736 | 976 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $.01 par value — authorized 100,000 shares; issued 5,600 shares at January 31, 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 74,220,991 shares at January 31, 2009 and 73,803,879 shares at October 31, 2008 (including 11,694,720 shares at January 31, 2009 and October 31, 2008 held in Treasury) | 742 | 738 | ||||||
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 January 31, 2009 and 15,331,494 shares at October 31, 2008 (including 691,748 shares at January 31, 2009 and October 31, 2008 held in Treasury) | 153 | 153 | ||||||
Paid in capital — common stock | 434,718 | 418,626 | ||||||
Accumulated deficit | (287,705 | ) | (109,295 | ) | ||||
Treasury stock — at cost | (115,257 | ) | (115,257 | ) | ||||
Total stockholders’ equity | 167,950 | 330,264 | ||||||
Total liabilities and stockholders’ equity | $ | 3,211,480 | $ | 3,637,322 | ||||
(1) | Derived from the audited balance sheet as of October 31, 2008. |
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HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands Except Share Amounts)
(Unaudited)
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands Except Share Amounts)
(Unaudited)
Three Months Ended | ||||||||
January 31, | ||||||||
2009 | 2008 | |||||||
Revenues: | ||||||||
Homebuilding: | ||||||||
Sale of homes | $ | 359,052 | $ | 1,051,818 | ||||
Land sales and other revenues | 6,413 | 27,910 | ||||||
Total homebuilding | 365,465 | 1,079,728 | ||||||
Financial services | 8,319 | 13,973 | ||||||
Total revenues | 373,784 | 1,093,701 | ||||||
Expenses: | ||||||||
Homebuilding: | ||||||||
Cost of sales, excluding interest | 340,675 | 1,003,564 | ||||||
Cost of sales interest | 23,129 | 28,588 | ||||||
Inventory impairment loss and land option write-offs | 110,181 | 90,168 | ||||||
Total cost of sales | 473,985 | 1,122,320 | ||||||
Selling, general and administrative | 71,044 | 100,169 | ||||||
Total homebuilding | 545,029 | 1,222,489 | ||||||
Financial services | 6,748 | 10,870 | ||||||
Corporate general and administrative | 30,910 | 21,155 | ||||||
Other interest | 24,230 | 540 | ||||||
Other operations | 1,624 | 1,467 | ||||||
Intangible amortization | — | 935 | ||||||
Total expenses | 608,541 | 1,257,456 | ||||||
Gain on extinguishment of debt | 79,520 | — | ||||||
Loss from unconsolidated joint ventures | (22,589 | ) | (5,039 | ) | ||||
Loss before income taxes | (177,826 | ) | (168,794 | ) | ||||
State and federal income tax provision (benefit): | ||||||||
State | 555 | 2,283 | ||||||
Federal | 29 | (40,134 | ) | |||||
Total taxes | 584 | (37,851 | ) | |||||
Net loss attributable to common stockholders | $ | (178,410 | ) | $ | (130,943 | ) | ||
Per share data: | ||||||||
Basic: | ||||||||
Loss per common share | $ | (2.29 | ) | $ | (2.07 | ) | ||
Weighted average number of common shares outstanding | 78,043 | 63,358 | ||||||
Assuming dilution: | ||||||||
Loss per common share | $ | (2.29 | ) | $ | (2.07 | ) | ||
Weighted average number of common shares outstanding | 78,043 | 63,358 |
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HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(UNAUDITED)
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(UNAUDITED)
Communities Under Development
Three Months — 01/31/2009
Three Months — 01/31/2009
Net Contracts(1) | Deliveries | |||||||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Contract Backlog | ||||||||||||||||||||||||||||||||||||
January 31, | January 31, | January 31, | ||||||||||||||||||||||||||||||||||||
2009 | 2008 | % Change | 2009 | 2008 | % Change | 2009 | 2008 | % Change | ||||||||||||||||||||||||||||||
Northeast | Home | 139 | 198 | (29.8 | )% | 194 | 314 | (38.2 | )% | 442 | 859 | (48.5 | )% | |||||||||||||||||||||||||
Dollars | $ | 65,345 | $ | 83,416 | (21.7 | )% | $ | 86,236 | $ | 160,346 | (46.2 | )% | $ | 193,533 | $ | 431,517 | (55.2 | )% | ||||||||||||||||||||
Avg.Price | $ | 470,108 | $ | 421,295 | 11.6 | % | $ | 444,515 | $ | 510,656 | (13.0 | )% | $ | 437,857 | $ | 502,348 | (12.8 | )% | ||||||||||||||||||||
Mid-Atlantic | Home | 136 | 201 | (32.3 | )% | 183 | 297 | (38.4 | )% | 338 | 657 | (48.6 | )% | |||||||||||||||||||||||||
Dollars | $ | 42,259 | $ | 73,424 | (42.5 | )% | $ | 68,995 | $ | 125,558 | (45.0 | )% | $ | 139,210 | $ | 308,344 | (54.9 | )% | ||||||||||||||||||||
Avg.Price | $ | 310,728 | $ | 365,294 | (14.9 | )% | $ | 377,022 | $ | 422,754 | (10.8 | )% | $ | 411,864 | $ | 469,321 | (12.2 | )% | ||||||||||||||||||||
Midwest | Home | 104 | 102 | 2.0 | % | 113 | 211 | (46.4 | )% | 282 | 650 | (56.6 | )% | |||||||||||||||||||||||||
Dollars | $ | 18,836 | $ | 18,737 | 0.5 | % | $ | 26,872 | $ | 46,580 | (42.3 | )% | $ | 54,552 | $ | 126,937 | (57.0 | )% | ||||||||||||||||||||
Avg.Price | $ | 181,115 | $ | 183,693 | (1.4 | )% | $ | 237,805 | $ | 220,758 | 7.7 | % | $ | 193,447 | $ | 195,288 | (0.9 | )% | ||||||||||||||||||||
Southeast | Home | 117 | 155 | (24.5 | )% | 157 | 1,629 | (90.4 | )% | 123 | 677 | (81.8 | )% | |||||||||||||||||||||||||
Dollars | $ | 20,063 | $ | 42,423 | (52.7 | )% | $ | 34,015 | $ | 393,182 | (91.3 | )% | $ | 31,896 | $ | 195,367 | (83.7 | )% | ||||||||||||||||||||
Avg.Price | $ | 171,479 | $ | 273,699 | (37.4 | )% | $ | 216,656 | $ | 241,364 | (10.2 | )% | $ | 259,317 | $ | 288,578 | (10.1 | )% | ||||||||||||||||||||
Southwest | Home | 282 | 545 | (48.3 | )% | 370 | 691 | (46.5 | )% | 332 | 605 | (45.1 | )% | |||||||||||||||||||||||||
Dollars | $ | 60,497 | $ | 124,385 | (51.4 | )% | $ | 86,605 | $ | 164,184 | (47.3 | )% | $ | 75,797 | $ | 136,931 | (44.7 | )% | ||||||||||||||||||||
Avg.Price | $ | 214,528 | $ | 228,229 | (6.0 | )% | $ | 234,068 | $ | 237,603 | (1.5 | )% | $ | 228,304 | $ | 226,333 | 0.9 | % | ||||||||||||||||||||
West | Home | 183 | 310 | (41.0 | )% | 191 | 462 | (58.7 | )% | 143 | 397 | (64.0 | )% | |||||||||||||||||||||||||
Dollars | $ | 30,519 | $ | 115,405 | (73.6 | )% | $ | 56,329 | $ | 161,968 | (65.2 | )% | $ | 36,043 | $ | 149,539 | (75.9 | )% | ||||||||||||||||||||
Avg.Price | $ | 166,770 | $ | 372,273 | (55.2 | )% | $ | 294,916 | $ | 350,580 | (15.9 | )% | $ | 252,049 | $ | 376,674 | (33.1 | )% | ||||||||||||||||||||
Consolidated Total | Home | 961 | 1,511 | (36.4 | )% | 1,208 | 3,604 | (66.5 | )% | 1,660 | 3,845 | (56.8 | )% | |||||||||||||||||||||||||
Dollars | $ | 237,519 | $ | 457,790 | (48.1 | )% | $ | 359,052 | $ | 1,051,818 | (65.9 | )% | $ | 531,031 | $ | 1,348,635 | (60.6 | )% | ||||||||||||||||||||
Avg.Price | $ | 247,158 | $ | 302,971 | (18.4 | )% | $ | 297,228 | $ | 291,847 | 1.8 | % | $ | 319,898 | $ | 350,750 | (8.8 | )% | ||||||||||||||||||||
Unconsolidated Joint Ventures | Home | 43 | 108 | (60.2 | )% | 75 | 155 | (51.6 | )% | 231 | 380 | (39.2 | )% | |||||||||||||||||||||||||
Dollars | $ | 14,122 | $ | 52,747 | (73.2 | )% | $ | 24,512 | $ | 66,568 | (63.2 | )% | $ | 146,330 | $ | 187,417 | (21.9 | )% | ||||||||||||||||||||
Avg.Price | $ | 328,442 | $ | 488,397 | (32.8 | )% | $ | 326,827 | $ | 429,469 | (23.9 | )% | $ | 633,463 | $ | 493,203 | 28.4 | % | ||||||||||||||||||||
Total | Home | 1,004 | 1,619 | (38.0 | )% | 1,283 | 3,759 | (65.9 | )% | 1,891 | 4,225 | (55.2 | )% | |||||||||||||||||||||||||
Dollars | $ | 251,641 | $ | 510,537 | (50.7 | )% | $ | 383,564 | $ | 1,118,386 | (65.7 | )% | $ | 677,361 | $ | 1,536,052 | (55.9 | )% | ||||||||||||||||||||
Avg.Price | $ | 250,638 | $ | 315,341 | (20.5 | )% | $ | 298,959 | $ | 297,522 | 0.5 | % | $ | 358,203 | $ | 363,563 | (1.5 | )% |
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. |
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