EX-99.1 2 a05-10091_1ex99d1.htm EX-99.1

Exhibit 99.1

 

HOVNANIAN ENTERPRISES, INC.

 

News Release

 

 

 

 

Contact:

 

Kevin C. Hake

 

Jeffrey T. O’Keefe

 

 

Senior Vice President and Treasurer

 

Director of Investor Relations

 

 

732-747-7800

 

732-747-7800

 

HOVNANIAN ENTERPRISES REPORTS 53% INCREASE IN FISCAL 2005 SECOND QUARTER EPS; ACHIEVES RECORD REVENUES, EARNINGS, DELIVERIES AND BACKLOG; PROJECTS MORE THAN 31% INCREASE IN FISCAL 2005 EPS

 

Highlights for the Quarter Ended April 30, 2005

 

•                                          Earnings per share increased 53% to a record $1.62 per fully diluted share for the second quarter of fiscal 2005, compared with $1.06 per fully diluted share in the same period a year ago. Total revenues were $1.2 billion, a 32% increase over last year’s second quarter.

 

•                                         Earnings for the trailing twelve months ended April 30, 2005 represent an after-tax return on beginning equity (ROE) of 42.1% and an after-tax return on beginning capital (ROC) of 22.5%.

 

•                                         EBITDA increased 48% to $206.2 million in the fiscal 2005 second quarter, covering interest 9.0 times for the quarter, compared with 6.3 times in the prior year’s second quarter.  At April 30, 2005, the Company’s ratio of net recourse debt-to-capitalization was 48.0%.

 

•                                         The dollar value of net contracts for the second quarter, including unconsolidated joint ventures, increased 25% to $1.9 billion on 5,328 homes, compared to $1.5 billion on 4,911 homes in last year’s second quarter.

 

•                                         Contract backlog as of April 30, 2005, including unconsolidated joint ventures, was 10,986 homes with a sales value of $3.9 billion, up 61% from the dollar value of backlog at April 30, 2004.

 

•                                         Management is increasing its projection for fiscal 2005 earnings to exceed $7.00 per fully diluted share, an increase of $0.15 over management’s previous projection, and representing more than a 31% increase over 2004 earnings per fully diluted share of $5.35.

 

RED BANK, NJ, May 31, 2005 – Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, reported net income of $106.1 million, or $1.62 per fully diluted share, on $1.2 billion in total revenues for the quarter ended April 30, 2005.  Net income in the second quarter of fiscal 2004 was $70.5 million, or $1.06 per fully diluted share, on total revenues of $918.8 million.

 

Consolidated deliveries in the second quarter of 2005 were 3,748 homes with an aggregate sales value of $1.2 billion, compared with consolidated deliveries of 3,353 homes in the same period last year with an aggregate sales value of $900.9 million.  Homebuilding gross margins, after interest expense included in cost of sales, increased 150 basis points to 25.2%, compared with 23.7% on a comparable basis in last year’s second quarter.  Stockholders’ equity grew 41% to $1.4 billion at April 30, 2005 from $970.2 million at the end of the fiscal 2004 second quarter.

 


 

Six Month Performance

 

For the six-month period ended April 30, 2005, revenues reached $2.3 billion, up 34% compared to $1.7 billion for the year earlier period.  Net income for the first half of fiscal 2005 increased 46% to $187.6 million, or $2.87 per fully diluted share, compared to $128.2 million, or $1.93 per fully diluted share, in the same period a year ago.  Compared to the first six months of 2004, the dollar value of net contracts during the same period in fiscal 2005 increased by 21% and the number of home deliveries rose by 18%, including the impact of unconsolidated joint ventures.

 

Comments from Management

 

“Our record results during the fiscal 2005 second quarter were fueled by our leading market positions, our increased geographic diversity, continued pricing power in many of our markets, and further market penetration through our broad product offerings, which target a wide variety of homebuyers,” said Ara K. Hovnanian, President and Chief Executive Officer of the Company.  “The vast majority of our earnings growth in the second quarter was organic, with more than 93% of the increase in earnings coming from our existing operations that have been in place for more than 12 months. The integration of our acquisitions of Cambridge Homes and Town & Country Homes, which occurred during our second quarter, is proceeding well,” Mr. Hovnanian continued.

 

“Looking ahead, the long-term fundamentals for the housing industry remain strong.  In our highly regulated markets we continue to benefit from supply constraints, which are primarily driven by regulatory processes that are lengthening and becoming more difficult,” said J. Larry Sorsby, Executive Vice President and Chief Financial Officer.  “At the end of the quarter, our backlog of almost 11,000 homes was a record level for any quarter in our history. This provides us with excellent visibility for deliveries, revenues and earnings for the second half of fiscal 2005 and into the early months of fiscal 2006.  As a result, we are raising our EPS projection for fiscal 2005 to greater than $7.00 per fully diluted share and we are confident that we will continue to show a strong increase in EPS growth in fiscal 2006.  We are projecting our third quarter EPS in 2005 to increase to $1.70 per fully diluted share, an increase of 28% over last year’s $1.33 per share.”

 

“During the second quarter, we continued to maintain our long-term debt-to-capital ratio below our target of 50%.  Our credit and coverage ratios remain strong, while our cash flow and access to capital provide us more than enough liquidity to attain our growth targets,” Mr. Sorsby concluded.

 

In Closing

 

“The continued strength of our product offerings contributed to a very successful first half of fiscal 2005 across many metrics, from improvements in gross margin to EPS growth,” Mr. Hovnanian said.  “We anticipate our number of communities open for sale to increase during the second half of the year to a level that is 20% higher than at the end of fiscal 2004, which we expect will lead to favorable net contract sales comparisons in the back half of 2005 and further growth in deliveries during 2006.  Throughout the balance of 2005 we will strive to maintain our strong returns and we will continue working on initiatives to improve the long-term efficiencies of our manufacturing processes.  We will continue to adhere to our high target hurdle rates for returns on new investments and we will deploy capital to those markets that are achieving the best returns.  We continue to evaluate potential company acquisition candidates and we will pursue future acquisitions when there is a good cultural fit, strong track record and management team, and where the profits and returns meet our thresholds. Through the hard work and dedication of our associates we have all of the elements in place to execute on our strategic plan for continued growth and profitability,” Mr. Hovnanian concluded.

 


 

Among the awards the Company received in recognition of its outstanding performance, Hovnanian recently

•                  debuted on the Fortune 500, ranked 457th based on revenue and ranked 2nd based on five-year total return to investors of 73%;

•                  was awarded several “Best Active Adult Community” awards by the NAHB Seniors Housing Council, while Ara Hovnanian was honored with an “Icon of the Industry Award” for “Active Adult Builder/Developer” for 2005; and

•                  ranked 5th on the Barron’s 500 list, an annual ranking of the biggest U.S. companies based on “significant stock-market gains and consistently strong cash flow.”

 

Hovnanian Enterprises will webcast its second quarter earnings conference call at 11:00 a.m. E.T. on Wednesday, June 1, 2005, 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 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 “Webcast” section of the Investor News page on the Hovnanian Web site at http://www.khov.com.  The archive will be available for 12 months.

 

The Company’s summary projection for the fiscal year ending October 31, 2005 is available on the Company Projection page of the “Investor Relations” section of the Company’s website at http://www.khov.com.

 

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, Illinois, Maryland, Michigan, 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. Hovnanian Homes, Goodman Homes, Matzel & Mumford, Diamond Homes, Westminster Homes, Forecast Homes, Parkside Homes, Brighton Homes, Parkwood Builders, Great Western Homes, Windward Homes, Cambridge Homes and Town & Country 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 2004 annual report, can be accessed through the Investor Relations page of the Hovnanian 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”) 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 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 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, 2004.

 

(Financial Tables Follow)

 


 

Hovnanian Enterprises, Inc.

April 30, 2005

Statements of Consolidated Income

(Dollars in Thousands, Except Per Share)

 

 

 

Three Months Ended,
April 30,

 

Six Months Ended,
April 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

(Unaudited)

 

Total Revenues

 

$

1,216,609

 

$

918,808

 

$

2,272,605

 

$

1,694,023

 

Costs and Expenses

 

1,042,082

 

806,651

 

1,966,172

 

1,489,171

 

Income Before Income Taxes

 

174,527

 

112,157

 

306,433

 

204,852

 

Provision for Taxes

 

68,391

 

41,685

 

118,815

 

76,669

 

Net Income

 

$

106,136

 

$

70,472

 

$

187,618

 

$

128,183

 

Per Share Data:

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

Income per common share

 

$

1.71

 

$

1.13

 

$

3.01

 

$

2.05

 

Weighted Average Number of Common Shares Outstanding

 

62,233

 

62,608

 

62,237

 

62,473

 

 

 

 

 

 

 

 

 

 

 

Assuming Dilution:

 

 

 

 

 

 

 

 

 

Income per common share

 

$

1.62

 

$

1.06

 

$

2.87

 

$

1.93

 

Weighted Average Number of Common Shares Outstanding

 

65,498

 

66,408

 

65,459

 

66,393

 

 


 

Hovnanian Enterprises, Inc.

April 30, 2005

Gross Margin

(Dollars in Thousands)

 

 

 

Homebuilding Gross Margin
Three Months Ended
April 30,

 

Homebuilding Gross Margin
Six Months Ended
April 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

(Unaudited)

 

Sale of Homes

 

$

1,189,672

 

$

900,943

 

$

2,205,641

 

$

1,658,216

 

Cost of Sales, excluding interest

 

875,016

 

673,778

 

1,632,101

 

1,236,678

 

Homebuilding Gross Margin, excluding interest

 

$

314,656

 

$

227,165

 

$

573,540

 

$

421,538

 

Cost of Sales interest

 

14,863

 

13,847

 

27,832

 

25,790

 

Homebuilding Gross Margin, including interest

 

$

299,793

 

$

213,318

 

$

545,708

 

$

395,748

 

 

 

 

 

 

 

 

 

 

 

Gross Margin Percentage, excluding interest

 

26.4

%

25.2

%

26.0

%

25.4

%

Gross Margin Percentage, including interest

 

25.2

%

23.7

%

24.7

%

23.9

%

 

 

 

Land Sales Gross Margin
Three Months Ended
April 30,

 

Land Sales Gross Margin
Six Months Ended
April 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

(Unaudited)

 

Land and Lot Sales

 

$

1,173

 

$

446

 

$

24,177

 

$

1,585

 

Cost of Sales

 

1,811

 

328

 

15,982

 

1,363

 

Land and Lot Gross Margin

 

$

(638

)

$

118

 

$

8,195

 

$

222

 

 


 

Hovnanian Enterprises, Inc.

April 30, 2005

Reconciliation of EBITDA to Net Income

(Dollars in Thousands)

 

 

 

Three Months Ended
April 30,

 

Six Months Ended
April 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

(Unaudited)

 

Net Income

 

$

106,136

 

$

70,472

 

$

187,618

 

$

128,183

 

Income Taxes

 

68,391

 

41,685

 

118,815

 

76,669

 

Interest expense

 

19,003

 

19,096

 

36,925

 

36,039

 

EBIT (1)

 

$

193,530

 

$

131,253

 

$

343,358

 

$

240,891

 

Depreciation

 

1,893

 

1,509

 

3,513

 

3,003

 

Amortization Debt Fees

 

348

 

1,302

 

709

 

1,765

 

Amortization of Intangibles

 

10,386

 

4,591

 

20,474

 

9,399

 

Other Amortization

 

—

 

791

 

528

 

1,833

 

EBITDA(2)

 

$

206,157

 

$

139,446

 

$

368,582

 

$

256,891

 

 

 

 

 

 

 

 

 

 

 

INTEREST INCURRED

 

$

22,904

 

$

22,204

 

$

43,948

 

$

43,791

 

 

 

 

 

 

 

 

 

 

 

EBITDA TO INTEREST INCURRED

 

9.00

 

6.28

 

8.39

 

5.87

 

 

(1)   EBIT is a non-GAAP financial measure. The 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 comparable GAAP financial measure is net income. EBITDA represents earnings before interest expense, income taxes, depreciation and amortization.

 

Hovnanian Enterprises, Inc.

April 30, 2005

Interest Incurred, Expensed and Capitalized

(Dollars is Thousands)

 

 

 

Three Months Ended
April 30,

 

Six Months Ended
April 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

(Unaudited)

 

Interest Capitalized at Beginning of Period

 

$

40,587

 

$

29,477

 

$

37,465

 

$

24,833

 

Plus Interest Incurred

 

22,904

 

22,204

 

43,948

 

43,791

 

Less Interest Expensed

 

19,003

 

19,096

 

36,925

 

36,039

 

Interest Capitalized at End of Period

 

$

44,488

 

$

32,585

 

$

44,488

 

$

32,585

 

 


 

Hovnanian Enterprises, Inc.

April 30, 2005

Summary Financial Projection

(Dollars in Millions, except per share or where noted)

(Unaudited)

 

 

 

Fiscal Year
10/31/2002

 

Fiscal Year
10/31/2003

 

Fiscal Year
10/31/2004

 

Trailing
12 Months
4/30/2005

 

Projection
Fiscal Year
10/31/2005*

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenues ($ Billion)

 

$

2.55

 

$

3.20

 

$

4.16

 

$

4.74

 

>

$

5.3

 

Income Before Income Taxes

 

$

225.7

 

$

411.5

 

$

549.8

 

$

651.4

 

>

$

749

 

Pre-tax Margin

 

8.8

%

12.9

%

13.2

%

13.7

%

>

14.1

%

Net Income

 

$

137.7

 

$

257.4

 

$

348.7

 

$

408.1

 

>

$

459.0

 

Earnings Per Share (fully diluted)

 

$

2.14

 

$

3.93

 

$

5.35

 

$

6.25

 

>

$

7.00

 

 

* Fiscal 2005 projections are based on two quarters of actual data and two quarters of projected results.

 


 

HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands)

 

ASSETS

 

April 30,
2005

 

October 31,
2004

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

Homebuilding:

 

 

 

 

 

Cash and cash equivalents

 

$

41,533

 

$

65,013

 

 

 

 

 

 

 

Inventories - At the lower of cost or fair value:

 

 

 

 

 

Sold and unsold homes and lots under development

 

2,058,138

 

1,785,706

 

 

 

 

 

 

 

Land and land options held for future development or sale

 

446,150

 

436,184

 

 

 

 

 

 

 

Consolidated Inventory Not Owned:

 

 

 

 

 

Specific performance options

 

38,637

 

11,926

 

Variable interest entities

 

124,940

 

201,669

 

Other options

 

117,677

 

31,824

 

Total Consolidated Inventory Not Owned

 

281,254

 

245,419

 

Total Inventories

 

2,785,542

 

2,467,309

 

 

 

 

 

 

 

Receivables, deposits, and notes

 

75,351

 

56,753

 

 

 

 

 

 

 

Property, plant, and equipment - net

 

71,589

 

44,137

 

 

 

 

 

 

 

Prepaid expenses and other assets

 

213,568

 

134,456

 

 

 

 

 

 

 

Goodwill

 

32,658

 

32,658

 

 

 

 

 

 

 

Definite life intangibles

 

131,395

 

125,492

 

Total Homebuilding

 

3,351,636

 

2,925,818

 

 

 

 

 

 

 

Financial Services:

 

 

 

 

 

Cash and cash equivalents

 

11,103

 

13,011

 

Mortgage loans held for sale

 

156,756

 

209,193

 

Other assets

 

5,490

 

8,245

 

Total Financial Services

 

173,349

 

230,449

 

Income Taxes Receivable – Including Deferred Tax Benefits

 

49,554

 

—

 

Total Assets

 

$

3,574,539

 

$

3,156,267

 

 


 

HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands)

 

 

 

April 30,

 

October 31,

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

2005

 

2004

 

 

 

(unaudited)

 

 

 

Homebuilding:

 

 

 

 

 

Nonrecourse land mortgages

 

$

33,419

 

$

25,687

 

Accounts payable and other liabilities

 

309,986

 

329,621

 

Customers’ deposits

 

110,790

 

80,131

 

Nonrecourse mortgages secured by operating Properties

 

24,650

 

24,951

 

Liabilities from inventory not owned

 

162,326

 

68,160

 

Total Homebuilding

 

641,171

 

528,550

 

 

 

 

 

 

 

Financial Services:

 

 

 

 

 

Accounts payable and other liabilities

 

5,816

 

6,080

 

Mortgage warehouse line of credit

 

124,326

 

188,417

 

Total Financial Services

 

130,142

 

194,497

 

 

 

 

 

 

 

Notes Payable:

 

 

 

 

 

Revolving credit agreement

 

105,100

 

115,000

 

Senior notes

 

803,046

 

602,737

 

Senior subordinated notes

 

400,000

 

300,000

 

Accrued interest

 

21,116

 

15,522

 

Total Notes Payable

 

1,329,262

 

1,033,259

 

Income Taxes Payable

 

—

 

48,999

 

Total Liabilities

 

2,100,575

 

1,805,305

 

 

 

 

 

 

 

Minority interest from inventory not owned

 

98,188

 

155,096

 

 

 

 

 

 

 

Minority interest from consolidated joint ventures.

 

3,447

 

3,472

 

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

Preferred Stock,$.01 par value-authorized 100,000 shares; none issued

 

 

 

 

 

Common Stock,Class A,$.01 par value-authorized 200,000,000 shares; issued 57,421,990 shares at April 30, 2005 and 56,797,313 shares at October 31, 2004 (including 10,695,656 shares at April 30, 2005 and 10,395,656 shares at October 31, 2004 held in Treasury)

 

574

 

568

 

Common Stock,Class B,$.01 par value (convertible to Class A at time of sale) authorized 30,000,000 shares; issued 15,373,497 shares at April 30, 2005 and 15,376,972 shares at October 31, 2004 (including 691,748 shares at April 30, 2005 and October 31, 2004 held in Treasury)

 

154

 

154

 

Paid in Capital

 

205,197

 

199,643

 

Retained Earnings

 

1,241,481

 

1,053,863

 

Deferred Compensation

 

(9,093

)

(11,784

)

Treasury Stock - at cost

 

(65,984

)

(50,050

)

Total Stockholders’ Equity

 

1,372,329

 

1,192,394

 

Total Liabilities and Stockholders’ Equity

 

$

3,574,539

 

$

3,156,267

 

 


 

HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In Thousands Except Per Share Data)

(Unaudited)

 

 

 

Three Months Ended
April 30,

 

Six Months Ended
April 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

Revenues:

 

 

 

 

 

 

 

 

 

Homebuilding:

 

 

 

 

 

 

 

 

 

Sale of homes

 

$

1,189,672

 

$

900,943

 

$

2,205,641

 

$

1,658,216

 

Land sales and other revenues

 

10,668

 

4,395

 

36,502

 

7,564

 

Total Homebuilding

 

1,200,340

 

905,338

 

2,242,143

 

1,665,780

 

Financial Services

 

16,269

 

13,470

 

30,462

 

28,243

 

Total Revenues

 

1,216,609

 

918,808

 

2,272,605

 

1,694,023

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

Homebuilding:

 

 

 

 

 

 

 

 

 

Cost of sales, excluding interest

 

876,827

 

674,106

 

1,648,083

 

1,238,041

 

Cost of sales interest

 

14,863

 

13,847

 

27,832

 

25,790

 

Total Cost of Sales

 

891,690

 

687,953

 

1,675,915

 

1,263,831

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

106,704

 

80,512

 

203,292

 

152,305

 

Inventory impairment loss

 

1,500

 

734

 

1,998

 

792

 

Total Homebuilding

 

999,894

 

769,199

 

1,881,205

 

1,416,928

 

 

 

 

 

 

 

 

 

 

 

Financial Services

 

11,467

 

8,670

 

21,387

 

16,697

 

 

 

 

 

 

 

 

 

 

 

Corporate General and Administrative.

 

14,916

 

14,694

 

30,794

 

29,218

 

 

 

 

 

 

 

 

 

 

 

Interest

 

4,140

 

5,249

 

9,093

 

10,249

 

 

 

 

 

 

 

 

 

 

 

Expenses Related to Extinguishment Of Debt

 

—

 

934

 

—

 

934

 

 

 

 

 

 

 

 

 

 

 

Other Operations

 

1,279

 

3,314

 

3,219

 

5,746

 

 

 

 

 

 

 

 

 

 

 

Intangible Amortization

 

10,386

 

4,591

 

20,474

 

9,399

 

Total Expenses

 

1,042,082

 

806,651

 

1,966,172

 

1,489,171

 

Income Before Income Taxes

 

174,527

 

112,157

 

306,433

 

204,852

 

 

 

 

 

 

 

 

 

 

 

State and Federal Income Taxes:

 

 

 

 

 

 

 

 

 

State

 

10,318

 

6,416

 

15,764

 

12,656

 

Federal

 

58,073

 

35,269

 

103,051

 

64,013

 

Total Taxes

 

68,391

 

41,685

 

118,815

 

76,669

 

Net Income

 

$

106,136

 

$

70,472

 

$

187,618

 

$

128,183

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

Income per common share

 

$

1.71

 

$

1.13

 

$

3.01

 

$

2.05

 

Weighted average number of common shares outstanding

 

62,233

 

62,608

 

62,237

 

62,473

 

Assuming dilution:

 

 

 

 

 

 

 

 

 

Income per common share

 

$

1.62

 

$

1.06

 

$

2.87

 

$

1.93

 

Weighted average number of common shares outstanding

 

65,498

 

66,408

 

65,459

 

66,393

 

 


 

HOVNANIAN ENTERPRISES, INC.

 

 

(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)

 

 

(UNAUDITED)

 

 

 

 

 

 

Communities Under Development

 

 

 

Three Months - 4/30/05

 

 

 

Net Contracts(1)

 

Deliveries

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Contract Backlog

 

 

 

April 30,

 

April 30,

 

April 30,

 

 

 

2005

 

2004

 

% Change

 

2005

 

2004

 

% Change

 

2005

 

2004

 

% Change

 

NorthEast Region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

734

 

919

 

(20.1

)%

725

 

669

 

8.4

%

2,100

 

2,440

 

(13.9

)%

Dollars

 

253,736

 

307,125

 

(17.4

)%

267,245

 

208,620

 

28.1

%

732,039

 

733,520

 

(0.2

)%

Avg. Price

 

345,689

 

334,194

 

3.4

%

368,614

 

311,839

 

18.2

%

348,590

 

300,623

 

16.0

%

SouthEast Region(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

1,518

 

1,276

 

19.0

%

1,118

 

987

 

13.3

%

3,236

 

2,592

 

24.8

%

Dollars

 

538,285

 

351,923

 

53.0

%

334,900

 

253,485

 

32.1

%

1,144,365

 

750,663

 

52.4

%

Avg. Price

 

354,602

 

275,802

 

28.6

%

299,553

 

256,824

 

16.6

%

353,636

 

289,608

 

22.1

%

SouthWest Region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

1,222

 

1,150

 

6.3

%

900

 

884

 

1.8

%

1,428

 

1,254

 

13.9

%

Dollars

 

235,487

 

202,748

 

16.1

%

164,133

 

154,564

 

6.2

%

272,554

 

204,621

 

33.2

%

Avg. Price

 

192,706

 

176,303

 

9.3

%

182,370

 

174,846

 

4.3

%

190,864

 

163,174

 

17.0

%

West Region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

1,216

 

1,428

 

(14.8

)%

1,005

 

813

 

23.6

%

2,072

 

1,570

 

32.0

%

Dollars

 

506,363

 

533,686

 

(5.1

)%

423,394

 

284,274

 

48.9

%

862,048

 

587,174

 

46.8

%

Avg. Price

 

416,417

 

373,729

 

11.4

%

421,288

 

349,661

 

20.5

%

416,046

 

373,996

 

11.2

%

Consolidated Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

4,690

 

4,773

 

(1.7

)%

3,748

 

3,353

 

11.8

%

8,836

 

7,856

 

12.5

%

Dollars

 

1,533,871

 

1,395,482

 

9.9

%

1,189,672

 

900,943

 

32.0

%

3,011,006

 

2,275,978

 

32.3

%

Avg. Price

 

327,051

 

292,370

 

11.9

%

317,415

 

268,698

 

18.1

%

340,766

 

289,712

 

17.6

%

Unconsolidated Joint Ventures(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

638

 

138

 

362.3

%

351

 

19

 

1747.4

%

2,150

 

237

 

807.2

%

Dollars

 

320,437

 

84,795

 

277.9

%

123,732

 

8,484

 

1358.3

%

879,482

 

140,353

 

526.6

%

Avg. Price

 

502,253

 

614,454

 

(18.3

)%

352,513

 

446,547

 

(21.1

)%

409,061

 

592,208

 

(30.9

)%

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

5,328

 

4,911

 

8.5

%

4,099

 

3,372

 

21.6

%

10,986

 

8,093

 

35.7

%

Dollars

 

1,854,308

 

1,480,277

 

25.3

%

1,313,404

 

909,427

 

44.4

%

3,890,488

 

2,416,331

 

61.0

%

Avg. Price

 

348,031

 

301,421

 

15.5

%

320,421

 

269,700

 

18.8

%

354,131

 

298,571

 

18.6

%

DELIVERIES INCLUDE EXTRAS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Net contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.

(2) The number and the dollar amount of net contracts in the Southeast in the second quarter of fiscal 2005 include the effect of the Cambridge Homes acquisition, which closed in March 2005.  The number and the dollar amount of net contracts Unconsolidated Joint Ventures in the second quarter of fiscal 2005 include the effect of the Town & Country Homes acquisition, which closed in March 2005.

 


 

HOVNANIAN ENTERPRISES, INC.

 

 

(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)

 

 

(UNAUDITED)

 

 

 

 

 

 

Communities Under Development

 

 

 

Six Months - 4/30/05

 

 

 

Net Contracts(1)
Six Months Ended
April 30,

 

Deliveries
Six Months Ended
April 30,

 

Contract Backlog
April 30,

 

 

 

2005

 

2004

 

% Change

 

2005

 

2004

 

% Change

 

2005

 

2004

 

% Change

 

NorthEast Region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

1,256

 

1,550

 

(19.0

)%

1,412

 

1,309

 

7.9

%

2,100

 

2,440

 

(13.9

)%

Dollars

 

443,341

 

510,609

 

(13.2

)%

505,706

 

400,528

 

26.3

%

732,039

 

733,520

 

(0.2

)%

Avg. Price

 

352,979

 

329,425

 

7.1

%

358,149

 

305,980

 

17.0

%

348,590

 

300,623

 

16.0

%

SouthEast Region(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

2,367

 

2,143

 

10.5

%

2,020

 

1,774

 

13.9

%

3,236

 

2,592

 

24.8

%

Dollars

 

823,167

 

592,990

 

38.8

%

598,734

 

444,547

 

34.7

%

1,144,365

 

750,663

 

52.4

%

Avg. Price

 

347,768

 

276,710

 

25.7

%

296,403

 

250,590

 

18.3

%

353,636

 

289,608

 

22.1

%

SouthWest Region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

2,119

 

1,873

 

13.1

%

1,615

 

1,608

 

0.4

%

1,428

 

1,254

 

13.9

%

Dollars

 

400,535

 

323,925

 

23.7

%

300,044

 

282,378

 

6.3

%

272,554

 

204,621

 

33.2

%

Avg. Price

 

189,021

 

172,944

 

9.3

%

185,786

 

175,608

 

5.8

%

190,864

 

163,174

 

17.0

%

West Region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

2,122

 

2,340

 

(9.3

)%

1,967

 

1,563

 

25.8

%

2,072

 

1,570

 

32.0

%

Dollars

 

860,487

 

832,706

 

3.3

%

801,157

 

530,763

 

50.9

%

862,048

 

587,174

 

46.8

%

Avg. Price

 

405,507

 

355,857

 

14.0

%

407,299

 

339,580

 

19.9

%

416,046

 

373,996

 

11.2

%

Consolidated Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

7,864

 

7,906

 

(0.5

)%

7,014

 

6,254

 

12.2

%

8,836

 

7,856

 

12.5

%

Dollars

 

2,527,530

 

2,260,230

 

11.8

%

2,205,641

 

1,658,216

 

33.0

%

3,011,006

 

2,275,978

 

32.3

%

Avg. Price

 

321,405

 

285,888

 

12.4

%

314,463

 

265,145

 

18.6

%

340,766

 

289,712

 

17.6

%

Unconsolidated Joint Ventures(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

704

 

230

 

206.1

%

373

 

29

 

1186.2

%

2,150

 

237

 

807.2

%

Dollars

 

361,784

 

135,786

 

166.4

%

135,317

 

11,310

 

1096.4

%

879,482

 

140,353

 

526.6

%

Avg. Price

 

513,898

 

590,372

 

(13.0

)%

362,780

 

389,998

 

(7.0

)%

409,061

 

592,208

 

(30.9

)%

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

8,568

 

8,136

 

5.3

%

7,387

 

6,283

 

17.6

%

10,986

 

8,093

 

35.7

%

Dollars

 

2,889,314

 

2,396,016

 

20.6

%

2,340,958

 

1,669,526

 

40.2

%

3,890,488

 

2,416,331

 

61.0

%

Avg. Price

 

337,222

 

294,496

 

14.5

%

316,902

 

265,721

 

19.3

%

354,131

 

298,571

 

18.6

%

DELIVERIES INCLUDE EXTRAS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Net contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.

(2) The number and the dollar amount of net contracts in the Southeast in the second quarter of fiscal 2005 include the effect of the Cambridge Homes acquisition, which closed in March 2005.  The number and the dollar amount of net contracts Unconsolidated Joint Ventures in the second quarter of fiscal 2005 include the effect of the Town & Country Homes acquisition, which closed in March 2005.