EX-99.1 CHARTER 3 pressrel90303.txt PRESS RELEASE TO BUSINESS EDITOR: Hovnanian Enterprises Reports 76% Increase in Third Quarter EPS; Posts Record Revenues, Earnings, Net Contracts, Deliveries and Backlog; Raises Fiscal 2003 and 2004 EPS Projections Highlights For The Quarter Ended July 31, 2003 -- Net earnings totaled $68.8 million, or $2.11 per fully diluted share, a 76% increase over the record $1.20 per share achieved in last year's third quarter. Excluding earnings from acquisitions closed within the last twelve months, more than 95% of the growth in earnings came from organic operations. -- Revenues increased to $848.8 million, up 20% from $704.6 million during the same period last year. The Company's pretax margin rose to 12.9% from 8.8% in the prior year's third quarter. -- Return on beginning equity for the latest twelve months ended July 31, 2003 was 43.5%, a strong indication of the Company's ability to create shareholder value. Earnings for the latest twelve months grew to $6.70 per diluted share. -- Management is increasing its projection for fiscal 2003 earnings to more than $7.50 per fully diluted share from the prior forecast of $6.50 to $6.75 per share. The revised 2003 estimate represents net income of $245 million, an increase of 78% from fiscal 2002. For fiscal 2004, earnings are expected to exceed $8.25 per fully diluted share, an increase from the prior estimate of $7.50 per share. -- The Company's consolidated homebuilding gross margin, excluding land sales, was 25.5%, an increase of 330 basis points from the third quarter of fiscal 2002. -- Deliveries increased to 3,066 homes, an all-time record for any quarter in the Company's 44 year history. Net contracts climbed to 3,484 homes valued at $963.6 million, up 37% from last year's results. -- Contract backlog at July 31, 2003 was an all-time company record of 5,718 homes with a sales value of $1.6 billion, an increase in dollar value of 33% from the same period last year. -- In August, after the quarter end, Hovnanian closed the previously announced acquisition of Great Western Homes, a builder of first- time and move-up homes throughout the Phoenix metropolitan area. The acquisition marks Hovnanian's entry into the Phoenix marketplace and expands the Company's operations in the Southwestern United States. RED BANK, N.J., Sept. 3 /PRNewswire-FirstCall/ -- Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, reported net income of $68.8 million, or $2.11 per fully diluted share, on $848.8 million in total revenue for the third quarter ended July 31, 2003. Last year's third quarter net income was $39.2 million, or $1.20 per fully diluted share, on revenue of $704.6 million. Pretax earnings from Financial Services increased to $6.0 million, up 21% from last year's third quarter. For the nine months ended July 31, 2003, revenue reached $2.16 billion, up 25% compared to $1.72 billion in the year earlier period. Net income for the first nine months of fiscal 2003 increased 100% to $166.1 million, or $5.06 per fully diluted share compared to $83.3 million or $2.61 per share in 2002. The dollar value of year-to-year net contracts during the nine-month period increased by 36% and the number of home deliveries rose by 20%. Comments from Management "We continued to set company records for growth and profitability during the third quarter," said Ara K. Hovnanian, President and Chief Executive Officer of the Company. "Our record earnings reflect the favorable supply and demand trends in many of our markets that have allowed us to increase home prices in many communities. Hovnanian is well positioned to take advantage of these trends due to our diverse offering of home styles aimed at a range of homebuyers from first-time homeowners to active adults. Our teams of homebuilding professionals are contributing to our success and creating value for our shareholders by continuing to acquire and develop excellent land positions in supply constrained markets. At the same time, our process improvements have further enhanced our profitability through increased efficiencies in our housing production. The result is a 330 basis point improvement in our consolidated homebuilding gross margin for the quarter, compared with last year's third quarter. The strength in underlying demographic trends, low mortgage rates and healthy consumer demand have all contributed to our ability to raise prices in many locations and thus consistently beat our internal expectations," he added. "Our record contract backlog provides good forward earnings visibility as we approach the end of our fiscal year and look forward to fiscal 2004. Our strong third quarter results and improved margins allow us to increase our projection for the current fiscal year, ending October 31st, to more than $7.50 per fully diluted share," Mr. Hovnanian stated. "This revised earnings projection represents a 75% increase from last year's record earnings of $4.28 per fully diluted share. Fiscal 2003 revenue is expected to climb to over $3.0 billion, and deliveries are anticipated to exceed 11,000 homes. We now project that our fiscal 2004 revenues will exceed $3.8 billion with more than 14,000 home deliveries. Earnings for fiscal 2004 are projected to exceed $8.25 per diluted share. We expect to enter fiscal 2004, which begins in less than 60 days, with more than 45% of our projected 2004 deliveries already in backlog," Mr. Hovnanian concluded. "Earnings before interest expenses, income taxes, depreciation, amortization and other non-cash write-offs and charges ("EBITDA") for the third quarter rose 45% to $135.0 million from $93.0 million in the third quarter of 2002," said J. Larry Sorsby, Executive Vice President and Chief Financial Officer. "EBITDA covered the amount of interest incurred in the quarter by 7.6 times. The Company's ratio of net recourse debt-to-equity was 0.96 to 1.0 at July 31, 2003, after taking more than $100 million of excess cash into consideration. This compares with a net recourse debt-to- equity ratio of 1.13 to 1.0 at the end of the third quarter in 2002," he added. During the quarter, the Company increased the aggregate commitment amount of its unsecured revolving credit facility from $513 million to $590 million. There was no outstanding balance on the revolving credit facility at the end of the quarter, and the Company had more than $100 million in excess cash. "The expansion of our credit facility improves our overall liquidity, providing additional flexibility to fund ongoing operations and our continued growth," Mr. Sorsby said. "We continue to achieve significant growth while simultaneously lowering our debt ratios. The Great Western Homes acquisition had no significant impact on the Company's leverage, and we expect that the Company's average net leverage ratio for all of fiscal 2003 will be approximately 1.0 to 1.0," he added. Following the end of the quarter, Moody's Investor Service upgraded the Company's credit rating on senior notes to Ba2 (from Ba3) and senior subordinated notes to Ba3 (from B2). "The recent upgrades by both Moody's and Standard and Poor's validate our successful geographic diversification initiatives and improving credit profile," Mr. Sorsby concluded. In Closing "We remain focused on organic growth and profitability as well as the successful integration of recent acquisitions," commented Mr. Hovnanian. "Our Company continues to rank near the top of the housing industry for both earnings growth and return on invested capital. We are confident that the implementation of our growth strategies and our commitment to process improvement will allow us to continue to set new benchmarks for profitability in the future," he said. Hovnanian Enterprises will webcast its third quarter earnings conference call at 11:00 a.m. EDT tomorrow morning, September 4th, hosted by Ara K. Hovnanian, President and Chief Executive Officer of the Company. The webcast can be accessed live through the Investor Relations section of Hovnanian Enterprises' Web site at www.khov.com and via www.streetevents.com. For those who are not available to listen to the live webcast, a replay will be available on both websites. 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, Maryland, Michigan, 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. Hovnanian, Washington Homes, Goodman Homes, Matzel & Mumford, Diamond Homes, Westminster Homes, Fortis Homes, Forecast Homes, Parkside Homes, Brighton Homes, Parkwood Builders, Summit Homes and Great Western 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. Additional information on Hovnanian Enterprises, Inc., including a summary investment profile and the Company's 2002 annual report, can be accessed through the Investors page of the Hovnanian Web site at http://www.khov.com. To be added to Hovnanian's investor e-mail or fax lists, please send an email to IR@khov.com or sign up at http://www.khov.com. Non-GAAP Financial Measures: EBITDA is not a generally accepted accounting principle (GAAP) financial measure. The most directly comparable GAAP financial measure is net income. The reconciliation of EBITDA to net income 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 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) 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) geopolitical risks, terrorist acts and other acts of war and (13) other factors described in detail in the Company's Form 10-K for the year ended October 31, 2002. (Financial Tables Follow) Hovnanian Enterprises, Inc. July 31, 2003 Statements of Consolidated Income (Dollars in Thousands, Except Per Share)
Three Months Ended Nine Months Ended July 31, July 31, 2003 2002 2003 2002 --------- -------- ---------- ---------- Total Revenues $848,817 $704,636 $2,156,269 $1,719,696 Costs and Expenses 739,009 642,675 1,890,897 1,586,365 --------- -------- ---------- --------- Income Before Income Taxes 109,808 61,961 265,372 133,331 Provision for Taxes 41,006 22,774 99,241 50,073 --------- --------- ----------- ---------- Net Income $ 68,802 $ 39,187 $ 166,131 $ 83,258 ========= ========= =========== ========== Per Share Data: Basic: Income per common share $2.25 $1.27 $5.35 $2.76 Weighted Average Number of Common Shares Outstanding 30,630 30,877 31,044 30,188 Assuming Dilution: Income per common share $2.11 $1.20 $5.06 $2.61 Weighted Average Number of Common Shares Outstanding 32,543 32,730 32,806 31,922
Hovnanian Enterprises, Inc. July 31, 2003 Homebuilding Gross Margin (Dollars in Thousands)
Homebuilding Gross Margin Homebuilding Gross Margin Three Months Ended Nine Months Ended July 31, July 31, 2003 2002 2003 2002 ---------- ---------- ---------- ---------- (Unaudited) Sale of Homes $830,734 $681,329 $2,104,788 $1,656,813 Cost of Sales 618,650 530,154 1,572,306 1,303,637 ---------- ---------- ---------- ---------- Homebuilding Gross Margin $212,084 $151,175 $ 532,482 $ 353,176 ========== ========== ========== =========== Gross Margin Percentage 25.5% 22.2% 25.3% 21.3% Land Sales Gross Margin Land Sales Gross Margin Three Months Ended Nine Months Ended July 31, July 31, 2003 2002 2003 2002 --------- -------- -------- --------- Land and Lot Sales $3,314 $10,587 $13,064 $29,127 Cost of Sales 3,247 9,522 9,988 24,048 --------- -------- -------- -------- Land and Lot Gross Margin $67 $1,065 $3,076 $5,079 ========= ======== ======== ========
Hovnanian Enterprises, Inc. July 31, 2003 Reconciliation of EBITDA to Net Income (Dollars in Thousands)
Three Months Ended Nine Months Ended July 31, July 31, 2003 2002 2003 2002 -------- ------- -------- ------- (Unaudited) Net Income 68,802 39,187 166,131 83,258 Income Taxes 41,006 22,774 99,241 50,073 Interest expense 17,204 15,849 44,308 42,353 -------- ------- -------- -------- EBIT(1) 127,012 77,810 309,680 175,684 Depreciation 1,721 1,660 4,946 5,002 Amortization Debt Fees 1,977 316 2,614 1,805 Amortization of Intangibles 4,336 1,166 8,965 2,722 Asset Write-off - 12,000 - 12,000 -------- ------- -------- -------- EBITDA(2) 135,046 92,952 326,205 197,213 ======== ======= ======== ======== INTEREST INCURRED 17,807 15,746 48,232 42,002 EBITDA TO INTEREST INCURRED 7.6 5.9 6.8 4.7 (1) EBIT is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income. EBIT represents earnings before interest expense and income taxes. (2) EBITDA is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income. EBITDA represents earnings before interest expense, income taxes, depreciation, amortization and other non-cash write-offs and charges.
Hovnanian Enterprises, Inc. July 31, 2003 Interest Incurred, Expensed and Capitalized (Dollars is Thousands)
Three Months Ended Nine Months Ended July 31, July 31, 2003 2002 2003 2002 ------- ------- ------- ------- (Unaudited) Interest Capitalized at Beginning of Period $25,480 $24,876 $22,159 $25,124 Plus Interest Incurred 17,807 15,746 48,232 42,002 Less Interest Expensed 17,204 15,849 44,308 42,353 -------- ------- -------- -------- Interest Capitalized at End of Period $26,083 $24,773 $26,083 $24,773 ======== ======= ======== ========
Hovnanian Enterprises, Inc. Summary Financial Projection (Dollars in Millions except per share or where noted) (Unaudited)
Trailing Fiscal Year Fiscal Yea 12 Mos. Fiscal Year Fiscal Year 10/31/2001 10/31/2002 07/31/2003 2003Projection 2004 Projection ----------- ----------- ---------- -------------- --------------- Total Revenues($ Billion) $1.74 $2.55 $2.99 > $3.00 > $3.80 Income Before Income Taxes $106.4 $226.6 $357.8 > $395.0 > $435.5 Pre-tax Margin 6.1% 8.9% 12.0% > 13.2% > 11.5% Net Income $63.7 $137.7 $220.6 > $245.0 > $270.0 Earnings Per Share (fully diluted) $2.29 $4.28 $6.70 > $7.50 > $8.25 * 2003 Projection is based on three quarters of actual data and one quarter of projected results.
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands)
July 31, October 31, ASSETS 2003 2002 ----------- ----------- (unaudited) Homebuilding: Cash and cash equivalents................ $ 110,820 $ 262,675 ----------- ----------- Inventories - At the lower of cost or fair value: Sold and unsold homes and lots under development............................ 1,090,908 803,829 ----------- ----------- Land and land options held for future development or sale.................... 280,706 171,081 ----------- ----------- Consolidated Inventory Not Owned: Specific performance options.......... 72,436 67,183 Variable interest entities............ 93,252 Other options......................... 54,377 39,489 ----------- ----------- Total Consolidated Inventory Not Owned.......................... 220,065 106,672 ----------- ----------- Total Inventories................ 1,591,679 1,081,582 ----------- ----------- Receivables, deposits, and notes............ 45,742 26,276 ----------- ----------- Property, plant, and equipment - net........ 27,110 19,242 ----------- ----------- Senior residential rental properties - net.. 9,215 9,504 ----------- ----------- Prepaid expenses and other assets........... 93,695 86,582 ----------- ----------- Goodwill and indefinite life intangibles.... 82,283 82,275 ----------- ----------- Definite life intangibles................... 59,244 ----------- ----------- Total Homebuilding.................. 2,019,788 1,568,136 ----------- ----------- Financial Services: Cash and cash equivalents................. 8,819 7,315 Mortgage loans held for sale.............. 152,211 91,451 Other assets.............................. 3,119 11,226 ----------- ----------- Total Financial Services................ 164,149 109,992 ----------- ----------- Income Taxes Receivable - Including deferred tax benefits............................... 11,717 ----------- ----------- Total Assets................................ $2,195,654 $1,678,128 =========== ===========
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands Except Per Share Data)
July 31, October 31, LIABILITIES AND STOCKHOLDERS' EQUITY 2003 2002 ----------- ----------- (unaudited) Homebuilding: Nonrecourse land mortgages................ $ 29,173 $ 11,593 Accounts payable and other liabilities.... 211,054 198,290 Customers' deposits....................... 61,263 40,422 Nonrecourse mortgages secured by operating properties............................... 3,177 3,274 Liabilities from inventory not owned...... 116,597 97,983 ----------- ----------- Total Homebuilding...................... 421,264 351,562 ----------- ----------- Financial Services: Accounts payable and other liabilities.... 6,641 4,857 Mortgage warehouse line of credit......... 137,039 85,498 ----------- ----------- Total Financial Services................ 143,680 90,355 ----------- ----------- Notes Payable: Term loan................................. 115,000 115,000 Senior notes.............................. 387,029 396,390 Senior subordinated notes................. 300,000 150,000 Accrued interest.......................... 17,738 9,555 ----------- ----------- Total Notes Payable..................... 819,767 670,945 ----------- ----------- Income Taxes Payable - Net of deferred tax benefits................................... 777 ----------- ----------- Total Liabilities....................... 1,384,711 1,113,639 ----------- ----------- Minority interest from inventory not owned.. 80,137 ----------- ----------- Minority interest from joint ventures....... 1,860 1,940 ----------- ----------- Stockholders' Equity: Preferred Stock, $.01 par value-authorized 100,000 shares; none issued.............. Common Stock, Class A, $.01 par value- authorized 87,000,000 shares; issued 27,875,001 shares at July 31, 2003 and 27,453,994 shares at October 31,2002 (including 5,342,599 shares at July 31, 2003 and 4,343,240 shares at October 31, 2002 held in Treasury).................. 279 275 Common Stock, Class B, $.01 par value (convertible to Class A at time of sale) authorized 13,000,000 shares; issued 7,772,342 shares at July 31, 2003 and 7,788,061 shares at October 31, 2002 (including 345,874 shares at July 31, 2003 and October 31, 2002 held in Treasury)... 78 78 Paid in Capital........................... 160,479 152,977 Retained Earnings......................... 613,933 447,802 Deferred Compensation..................... (21) Treasury Stock - at cost.................. (45,823) (38,562) ----------- ----------- Total Stockholders' Equity.................. 728,946 562,549 ----------- ----------- Total Liabilities and Stockholders' Equity.. $2,195,654 $1,678,128 =========== ===========
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In Thousands Except Per Share Data) (Unaudited)
Three Months Ended Nine Months Ended July 31, July 31, ------------------- ----------- --------- 2003 2002 2003 2002 --------- --------- --------- ---------- Revenues: Homebuilding: Sale of homes...... $ 830,734 $ 681,329 $2,104,788 $1,656,813 Land sales and other revenues.... 4,441 12,651 16,445 34,564 --------- --------- ---------- ---------- Total Homebuilding.... 835,175 693,980 2,121,233 1,691,377 Financial Services... 13,642 10,656 35,036 28,319 --------- --------- ---------- --------- Total Revenues..... 848,817 704,636 2,156,269 1,719,696 --------- --------- ---------- --------- Expenses: Homebuilding: Cost of sales...... 621,897 539,676 1,582,294 1,327,685 Selling, general and administrative 66,136 52,882 180,035 138,177 Inventory impairment loss.............. 149 426 1,633 2,755 --------- --------- ---------- ---------- Total Homebuilding 688,182 592,984 1,763,962 1,468,617 Financial Services... 7,635 5,694 19,629 16,156 Corporate General and Administrative...... 16,978 12,195 45,026 33,700 Interest............. 17,204 15,849 44,308 42,353 Other Operations..... 9,010 3,953 17,972 13,539 Restructuring Charges/ Asset Writeoff...... 12,000 12,000 --------- --------- ---------- ---------- Total Expenses... 739,009 642,675 1,890,897 1,586,365 --------- --------- ---------- ---------- Income Before Income Taxes................. 109,808 61,961 265,372 133,331 --------- --------- ---------- ---------- State and Federal Income Taxes: State................ 5,439 1,679 11,874 5,086 Federal.............. 35,567 21,095 87,367 44,987 --------- --------- ---------- ---------- Total Taxes........ 41,006 22,774 99,241 50,073 --------- --------- ---------- ---------- Net Income............. $ 68,802 $ 39,187 $ 166,131 $ 83,258 ========= ========= ========== ========== Per Share Data: Basic: Income per common share............... $2.25 $1.27 $5.35 $2.76 ========= ========= ========== ========== Weighted average number of common shares outstanding.......... 30,630 30,877 31,044 30,188 Assuming dilution: Income per common share $2.11 $1.20 $5.06 $2.61 ========= ========= ========== ========== Weighted average number of common shares outstanding.......... 32,543 32,730 32,806 31,922
HOVNANIAN ENTERPRISES, INC. (DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) Communities Under Development Three Months - 7/31/03
Net Contracts Three Months Ended 31-Jul-03 2003 2002 % Change ---------- ---------- ---------- NE Region Homes 889 534 66.5% Dollars 261,625 148,390 76.3% Avg. Price 294,291 277,884 5.9% N. Carolina Homes 396 296 33.8% Dollars 72,322 55,660 29.9% Avg. Price 182,630 188,039 (2.9%) Metro D.C. Homes 469 304 54.3% Dollars 167,495 98,828 69.5% Avg. Price 357,133 325,091 9.9% California Homes 1,093 1,121 (2.5%) Dollars 336,889 288,885 16.6% Avg. Price 308,224 257,703 19.6% Texas Homes 637 257 147.9% Dollars 125,292 54,437 130.2% Avg. Price 196,691 211,817 (7.1%) Other Homes N/A 37 N/A Dollars N/A 6,443 N/A Avg. Price N/A 174,148 N/A Total Homes 3,484 2,549 36.7% Dollars 963,623 652,643 47.6% Avg. Price 276,585 256,039 8.0% DELIVERIES INCLUDE EXTRAS
HOVNANIAN ENTERPRISES, INC. (DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) Communities Under Development Three Months - 7/31/03
Deliveries Three Months Ended 31-Jul-03 2003 2002 %Change ---------- ---------- ---------- NE Region Homes 647 570 13.5% Dollars 210,039 177,153 18.6% Avg. Price 324,635 310,795 4.5% N. Carolina Homes 365 393 (7.1%) Dollars 65,399 72,437 (9.7%) Avg. Price 179,175 184,318 (2.8%) Metro D.C. Homes 324 386 (16.1%) Dollars 100,184 110,030 (8.9%) Avg. Price 309,210 285,052 8.5% California Homes 1,090 926 17.7% Dollars 325,205 242,631 34.0% Avg. Price 298,353 262,021 13.9% Texas Homes 640 286 123.8% Dollars 129,907 65,432 98.5% Avg. Price 202,980 228,783 (11.3%) Other Homes N/A 86 N/A Dollars N/A 13,646 N/A Avg. Price N/A 158,674 N/A Total Homes 3,066 2,647 15.8% Dollars 830,734 681,329 21.9% Avg. Price 270,950 257,397 5.3% DELIVERIES INCLUDE EXTRAS
HOVNANIAN ENTERPRISES, INC. (DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
Communities Under Development Three Months - 7/31/03 Contract Backlog 31-Jul-03 2003 2002 % Change ---------- ---------- ---------- NE Region Homes 2,266 1,578 43.6% Dollars 613,884 442,037 38.9% Avg. Price 270,911 280,125 (3.3%) N. Carolina Homes 672 564 19.1% Dollars 128,997 108,502 18.9% Avg. Price 191,960 192,380 (0.2%) Metro D.C. Homes 1,035 920 12.5% Dollars 368,910 292,044 26.3% Avg. Price 356,435 317,439 12.3% California Homes 1,103 1,007 9.5% Dollars 359,821 286,876 25.4% Avg. Price 326,220 284,882 14.5% Texas Homes 642 295 117.6% Dollars 127,636 69,556 83.5% Avg. Price 198,810 235,783 (15.7%) Other Homes N/A 39 N/A Dollars N/A 6,456 N/A Avg. Price N/A 165,547 N/A Total Homes 5,718 4,403 29.9% Dollars 1,599,248 1,205,471 32.7% Avg. Price 279,687 273,784 2.2% DELIVERIES INCLUDE EXTRAS
HOVNANIAN ENTERPRISES, INC. (DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
Communities Under Development Nine Months - 7/31/03 Net Contracts Nine Months Ended 31-Jul-03 2003 2002 % Change ---------- ---------- ---------- NE Region Homes 1,896 1,478 28.3% Dollars 582,015 423,227 37.5% Avg. Price 306,970 286,351 7.2% N. Carolina Homes 1,171 1,074 9.0% Dollars 214,700 198,848 8.0% Avg. Price 183,348 185,147 (1.0%) Metro D.C. Homes 1,229 1,085 13.3% Dollars 422,477 341,919 23.6% Avg. Price 343,757 315,133 9.1% California Homes 2,994 2,394 25.1% Dollars 882,976 634,009 39.3% Avg. Price 294,915 264,832 11.4% Texas Homes 1,722 778 121.3% Dollars 338,197 171,409 97.3% Avg. Price 196,398 220,320 (10.9%) Other Homes 2 172 (98.8%) Dollars 313 26,861 (98.8%) Avg. Price 156,700 156,170 0.3% Total Homes 9,014 6,981 29.1% Dollars 2,440,678 1,796,273 35.9% Avg. Price 270,765 257,309 5.2% DELIVERIES INCLUDE EXTRAS
HOVNANIAN ENTERPRISES, INC. (DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
Communities Under Development Nine Months - 7/31/03 Deliveries Nine Months Ended 31-Jul-03 2003 2002 % Change ---------- ---------- ---------- NE Region Homes 1,540 1,469 4.8% Dollars 494,957 455,171 8.7% Avg. Price 321,401 309,851 3.7% N. Carolina Homes 965 1,044 (7.6%) Dollars 173,938 193,902 (10.3%) Avg. Price 180,247 185,730 (3.0%) Metro D.C. Homes 968 944 2.5% Dollars 305,927 258,755 18.2% Avg. Price 316,040 274,105 15.3% California Homes 2,846 2,094 35.9% Dollars 819,369 535,961 52.9% Avg. Price 287,902 255,951 12.5% Texas Homes 1,519 746 103.6% Dollars 309,336 172,778 79.0% Avg. Price 203,645 231,606 (12.1%) Other Homes 9 258 (96.5%) Dollars 1,261 40,246 (96.9%) Avg. Price 140,111 155,992 (10.2%) Total Homes 7,847 6,555 19.7% Dollars 2,104,788 1,656,813 27.0% Avg. Price 268,228 252,756 6.1% DELIVERIES INCLUDE EXTRAS
HOVNANIAN ENTERPRISES, INC. (DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
Communities Under Development Nine Months - 7/31/03 Contract Backlog 31-Jul-03 2003 2002 % Change ---------- ---------- ---------- NE Region Homes 2,266 1,578 43.6% Dollars 613,884 442,037 38.9% Avg. Price 270,911 280,125 (3.3%) N. Carolina Homes 672 564 19.1% Dollars 128,997 108,502 18.9% Avg. Price 191,960 192,380 (0.2%) Metro D.C. Homes 1,035 920 12.5% Dollars 368,910 292,044 26.3% Avg. Price 356,435 317,439 12.3% California Homes 1,103 1,007 9.5% Dollars 359,821 286,876 25.4% Avg. Price 326,220 284,882 14.5% Texas Homes 642 295 117.6% Dollars 127,636 69,556 83.5% Avg. Price 198,810 235,783 (15.7%) Other Homes N/A 39 N/A Dollars N/A 6,456 N/A Avg. Price N/A 165,547 N/A Total Homes 5,718 4,403 29.9% Dollars 1,599,248 1,205,471 32.7% Avg. Price 279,687 273,784 2.2% DELIVERIES INCLUDE EXTRAS
SOURCE Hovnanian Enterprises, Inc. -0- 09/03/2003 /CONTACT: Kevin C. Hake, Vice President and Treasurer, +1-732-747- 7800, or Brian A. Cheripka, Assistant Director of Investor Relations, +1-732-747-7800, both of Hovnanian Enterprises, Inc./ /First Call Analyst: / /Web site: http://www.khov.com /