EX-99.1 4 a06-5699_1ex99d1.htm EXHIBIT 99

Exhibit 99.1

 

HOVNANIAN ENTERPRISES, INC.

 

 

News Release

 

 

 

Contact:

 

Kevin C. Hake

 

Jeffrey T. O’Keefe

 

 

Sr. Vice President Finance & Treasurer

 

Director of Investor Relations

 

 

732-747-7800

 

732-747-7800

 

HOVNANIAN ENTERPRISES ANNOUNCES 22% INCREASE IN DOLLAR VALUE OF NET CONTRACTS FOR THE FIRST QUARTER AND 82% INCREASE IN THE DOLLAR VALUE OF CONTRACT BACKLOG AS OF THE END OF THE FIRST QUARTER

 

RED BANK, NJ, February 22, 2006 — Hovnanian Enterprises, Inc. (NYSE-HOV), a leading national homebuilder, announced today preliminary net contracts and sales backlog for the first quarter ended January 31, 2006.  For the first quarter of fiscal 2006, the dollar value of net contracts, including unconsolidated joint ventures, increased 22.0%, and the number of net contracts increased 11.9%, when compared with the first quarter last year.  The sales value of contract backlog at January 31, 2006, including unconsolidated joint ventures, increased 81.7% on a year-over-year basis, and the number of homes in contract backlog increased 81.0% when compared to the end of the first quarter of fiscal 2005.

 

Despite solid growth in net contracts for the quarter, the Company stated that many of its more highly-regulated markets, including California, Florida, Washington, D.C., and the Northeast, continued to experience a more normalized level of activity during the quarter with regard to both sales pace and price increases, similar to the market conditions that the Company reported in December with its year-end earnings release.  Market conditions remain somewhat slower than the very strong sales environment experienced in these markets earlier in 2005 and 2004.

 

The Company delivered 3,845 homes in the first quarter of fiscal 2006, excluding unconsolidated joint ventures, compared with 3,266 homes delivered during last year’s first quarter.  Deliveries from the Company’s unconsolidated joint ventures were 585 in the first quarter of 2006 compared with 22 in the first quarter of 2005.

 

Hovnanian will release earnings for the first quarter ended January 31, 2006 after the close of the New York Stock Exchange on Wednesday, March 1, 2006.  While the Company has not finalized its results for the quarter, based on the number of homes delivered in the quarter, the Company expects to be able to meet or slightly exceed its previous projection of earnings in the range of $1.10 to $1.25 per fully diluted common share for the first quarter of 2006.  Although Hovnanian’s current practice is to report net contracts on a quarterly basis in conjunction with its quarterly earnings release, this information is being provided in compliance with Regulation FD in anticipation of communications with the investment community at an upcoming investor conference.

 


 

HOVNANIAN ENTERPRISES, INC.

 

 

(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)

 

 

(UNAUDITED)

 

Communities Under Development

 

 

Three Months - 1/31/06

 

 

 

 

 

Net Contracts (1)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Contract Backlog

 

 

 

 

 

January 31,

 

January 31,

 

 

 

 

 

2006

 

2005

 

% Change

 

2006

 

2005

 

% Change

 

NorthEast Region (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

608

 

522

 

16.5

%

2,160

 

2,091

 

3.3

%

 

 

Dollars

 

224,401

 

189,605

 

18.4

%

803,498

 

720,675

 

11.5

%

 

 

Avg. Price

 

369,081

 

363,228

 

1.6

%

371,990

 

344,656

 

7.9

%

SouthEast Region  (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

1,367

 

849

 

61.0

%

7,218

 

2,346

 

207.7

%

 

 

Dollars

 

501,401

 

284,882

 

76.0

%

2,242,102

 

792,978

 

182.7

%

 

 

Avg. Price

 

366,790

 

335,550

 

9.3

%

310,627

 

338,013

 

(8.1

)%

SouthWest Region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

801

 

897

 

(10.7

)%

1,225

 

1,106

 

10.8

%

 

 

Dollars

 

170,704

 

165,048

 

3.4

%

276,116

 

197,285

 

40.0

%

 

 

Avg. Price

 

213,113

 

184,000

 

15.8

%

225,401

 

178,377

 

26.4

%

West Region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

574

 

906

 

(36.6

)%

1,493

 

1,861

 

(19.8

)%

 

 

Dollars

 

257,151

 

354,124

 

(27.4

)%

686,500

 

764,697

 

(10.2

)%

 

 

Avg. Price

 

447,998

 

390,865

 

14.6

%

459,813

 

410,907

 

11.9

%

Consolidated Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

3,350

 

3,174

 

5.5

%

12,096

 

7,404

 

63.4

%

 

 

Dollars

 

1,153,657

 

993,659

 

16.1

%

4,008,216

 

2,475,635

 

61.9

%

 

 

Avg. Price

 

344,375

 

313,062

 

10.0

%

331,367

 

334,365

 

(0.9

)%

Unconsolidated Joint Ventures  (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

274

 

66

 

315.2

%

2,029

 

399

 

408.5

%

 

 

Dollars

 

108,572

 

41,347

 

162.6

%

924,762

 

239,851

 

285.6

%

 

 

Avg. Price

 

396,250

 

626,470

 

(36.7

)%

455,772

 

601,130

 

(24.2

)%

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Homes

 

3,624

 

3,240

 

11.9

%

14,125

 

7,803

 

81.0

%

 

 

Dollars

 

1,262,229

 

1,035,006

 

22.0

%

4,932,978

 

2,715,486

 

81.7

%

 

 

Avg. Price

 

348,297

 

319,446

 

9.0

%

349,237

 

348,005

 

0.4

%

 

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.

(2) The number and the dollar amount of net contracts in the Northeast in the 2006 first quarter include the effect of the Oster Homes acquisition, which closed in August 2005.

(3) The number and the dollar amount of net contracts in the Southeast in the 2006 first quarter include the effects of the Cambridge Homes and First Home Builders of Florida acquisitions, which closed in March 2005 and August 2005, respectively.

(4) The number and the dollar amount of net contracts in Unconsolidated Joint Ventures in the 2006 first quarter include the effect of the Town & Country Homes acquisition, which closed in March 2005.

 


 

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, Matzel & Mumford, Forecast Homes, Parkside Homes, Brighton Homes, Parkwood Builders, Windward Homes, Cambridge Homes, Town & Country Homes, Oster Homes and First Home Builders of Florida.  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 2005 annual report, can be accessed through the “Investor Relations” section of the Hovnanian Enterprises’ website at http://www.khov.com. To be added to Hovnanian’s investor e-mail or fax lists, please send an e-mail to IR@khov.com or sign up at http://www.khov.com.