Exhibit 99.1
Hovnanian Enterprises, Inc. (ticker: HOV, exchange: New York Stock Exchange)
News Release - 8/5/2002
Hovnanian Enterprises, Inc. Announces July 2002 New Home Orders; Expects to
Exceed Consensus Earnings Estimates for Fiscal 2002
RED BANK, N.J., Aug 5, 2002 /PRNewswire-FirstCall via COMPTEX/ -- Hovnanian
Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, announced today
preliminary new home orders for the month of July 2002.
% Change July 2002 % Change
Net New From Net New From
July 2002 Home Orders July 2001 Home Orders July 2001
--------- ----------- --------- ----------- ---------
($ in millions)
Northeast Region....... 202 39.3% $ 59.4 62.4%
North Carolina......... 110 1.9% 19.7 -0.4%
Metro DC............... 110 64.2% 35.1 86.7%
California............. 404 521.5% 104.1 385.3%
Texas.................. 86 -9.5% 16.1 -23.2%
Other.................. 21 -27.6% 3.3 1.8%
Total: ............ 933 83.3% $237.7 96.9%
The number of active selling communities Company-wide on July 31, 2002
increased 8.7 percent to 199 communities from 183 communities at the end of
July 2001. The California market continued to show particular strength in
July. The number of active selling communities in California, including the
effect of the Forecast Homes acquisition, increased 273 percent year over year
and California new orders in July 2002 increased 522 percent from July 2001.
Hovnanian also announced today that it expects earnings per share for its 2002
fiscal year, which ends October 31, 2002, to significantly exceed the high end
of the range of analyst estimates for the year. This exceptional performance
is a result of the Company's continuing ability to exceed its sales forecast
over the past few months and to continue increasing prices in selected
markets. Analysts who cover the Company's stock have published earnings
estimates ranging from $3.10 to $3.35 per share for Hovnanian's fiscal 2002.
The Company reported earnings of $2.29 per share in fiscal 2001. The current
consensus of estimates for fiscal 2002 earnings of $3.23 per share already
represents a 41% increase over last year's result. The Company anticipates
that it will release earnings for the third quarter in early September.
At quarter end July 31, 2002, the Company had virtually all of its forecasted
deliveries for fiscal 2002 either in sales backlog or already closed. The
Company's recent new home orders are beginning to build a backlog for delivery
in fiscal 2003, particularly in the Company's Northeast and Washington D.C.
markets.
Hovnanian Enterprises, Inc. founded in 1959, is headquartered in Red Bank, New
Jersey. The Company is one of the nation's largest homebuilders with
operations in California, Maryland, New Jersey, New York, North Carolina,
Pennsylvania, Texas and Virginia. The Company's homes are marketed and sold
under the trade names K. Hovnanian, Washington Homes, Goodman Homes, Matzel &
Mumford, Diamond Homes, Westminster Homes, Fortis Homes and Forecast Homes. As
the developer of K. Hovnanian's Four Seasons communities, the Company is also
one of the nation's largest builders of active adult homes.
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 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
business conditions, (2) weather conditions, (3) changes in market conditions,
(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 homebuilding process and the environment, (6)
fluctuations in interest rates and the availability of mortgage financing, (7)
increases in raw materials and labor costs, (8) the availability and cost of
suitable land and improved lots, (9) levels of competition, (10) availability
of financing to the Company, (ll) terrorist acts and other acts of war and
(12) other factors described in detail in the Company's Form 10-K for the year
ended October 31, 2001. SOURCE Hovnanian Enterprises, Inc.
CONTACT:
Kevin Hake, Vice President, Finance & Treasurer, +1-732-747-7800, Brian
Cheripka, Assistant Director of Investor Relations, +1-732-747-7800, both of
Hovnanian Enterprises, Inc.
-2-