Hovnanian Enterprises Reports First Quarter Fiscal 2010 Results
RED BANK, N.J., March 2 /PRNewswire-FirstCall/ -- Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, reported results for its first quarter ended January 31, 2010.
RESULTS FOR THE THREE MONTH PERIOD ENDED January 31, 2010:
- Total revenues were $319.6 million for the first three months of fiscal 2010 compared with $373.8 million in the same quarter a year ago.
- Homebuilding gross margin, before interest expense included in cost of sales, increased for the fifth consecutive quarter to 16.0% for the first quarter of 2010, compared to 5.7% in the fiscal 2009 first quarter and 13.2% in the 2009 fourth quarter.
- For the first quarter of fiscal 2010, the after-tax net income was $236.2 million, or $2.97 per fully diluted common share, compared with a net loss of $178.4 million, or $2.29 per common share, in the first quarter of the previous year. As a result of tax legislation changes, the after-tax net income included a federal income tax benefit of $291.3 million.
- Pre-tax land-related charges for the first quarter ended January 31, 2010 were $5.0 million, including land impairments of $3.3 million and write-offs of predevelopment costs and land deposits of $1.7 million compared to $132.0 million of pre-tax land-related charges during the first quarter of fiscal 2009.
- Net contracts per active selling community increased 31% to 5.1 net contracts per active selling community in the first quarter of fiscal 2010 from 3.9 in last year's first quarter. However, primarily due to a 27% decrease in active selling communities, the number of net contracts for the first quarter of fiscal 2010, excluding unconsolidated joint ventures, decreased 5% to 912 homes compared with the same quarter a year ago.
- Deliveries, excluding unconsolidated joint ventures, were 1,091 homes for the quarter ended January 31, 2010, a 10% decrease from 1,208 homes in the first quarter of fiscal 2009.
- The contract cancellation rate, excluding unconsolidated joint ventures, for the first quarter of fiscal 2010 was 21%, compared with the contract cancellation rate of 31% in the prior year's first quarter. The 2010 first quarter cancellation rate of 21% represents the lowest cancellation rate since the second quarter of 2005.
- During the first quarter, the tax asset valuation allowance decreased from $987.6 million at the end of the fourth quarter of 2009 to $706.1 million as of January 31, 2010, primarily due to the recognition of the net operating loss carryback benefit resulting from the tax law change in November 2009. The valuation allowance is a non-cash reserve against the tax assets for GAAP purposes. For tax purposes, the tax deductions associated with the tax assets may be carried forward for 20 years from the date the deductions were incurred.
CASH AND INVENTORY AS OF JANUARY 31, 2010:
- At January 31, 2010, homebuilding cash was $449.6 million, including restricted cash required to collateralize letters of credit. This cash position does not include the $274.1 million federal income tax refund that was received early in the second quarter or an additional federal income tax refund for approximately $17.2 million expected to be received later in the year.
- Cash flow during the first quarter of fiscal 2010 was negative $74.7 million. During the quarter, $77.1 million of cash was spent on land purchases and $22.3 million of cash was used to retire debt.
- As of January 31, 2010, the consolidated land position was 28,433 lots, consisting of 10,952 lots under option and 17,481 owned lots.
- The owned lot position increased by approximately 1,000 lots from the end of the fourth quarter of 2009 to the end of the first quarter of 2010, through the delivery of 1,100 homes and the purchase of 2,100 lots. The optioned lot position decreased by approximately 400 lots over the same period of time, as a result of walking away from 300 lots, purchasing 1,500 lots that were previously optioned and signing options for an additional 1,400 lots.
- Recently identified land deals accounted for approximately 1,550 of the lots purchased during the first quarter of 2010, including approximately 650 lots previously controlled under a rolling option agreement that were purchased in bulk at a 68% discount to the option price.
- Started unsold homes, excluding models, declined 37%, to 725 at January 31, 2010 compared to 1,142 at the end of last year's first quarter.
OTHER KEY OPERATING DATA:
- Contract backlog, as of January 31, 2010, excluding unconsolidated joint ventures, was 1,593 homes with a sales value of $505.4 million, a decrease of 4% and 5%, respectively, compared to January 31, 2009.
- During the first quarter of fiscal 2010, home deliveries through unconsolidated joint ventures were 38 homes, compared with 75 homes in the first quarter of the previous year.
COMMENTS FROM MANAGEMENT:
"The first quarter saw the typical seasonal home buying patterns that we would expect," commented Ara K. Hovnanian, Chairman of the Board, President and Chief Executive Officer. "Traffic and net contracts dropped off around the Thanksgiving holiday, and we began to see a pickup in traffic and net contracts during the last half of January and into February. In the first quarter, we continued to see a couple of positive year-over-year comparisons, including an increase in gross margins and an increase in net contracts per active selling community."
"We are pleased to see the market for new land deals begin to thaw out a bit and we continue to diligently pursue new land opportunities where we can make normalized returns based on today's home prices and sales absorption levels. Adhering to sound land underwriting assumptions will reduce risk and prove beneficial to our future financial performance," Mr. Hovnanian continued.
"We opened ten communities during the first quarter," stated J. Larry Sorsby, Executive Vice President and Chief Financial Officer. "After nine consecutive quarters of decline, our community count stabilized on a sequential basis at 179 communities at the end of the first quarter, which was the same as the community count at the end of our fiscal year. As we take steps to return the Company to profitability, we must acquire additional new land parcels so that we can start growing our community count, which will boost revenues and drive greater operating efficiencies," said Mr. Sorsby.
"It is encouraging that we have been able to continue to report improving margins and year-over-year increases in sales absorption rates. Although we remain cautiously optimistic, several headwinds such as persistently high unemployment levels, the expiration of the federal homebuyers tax credit and the threat of more foreclosures continue to hinder a sustainable recovery in the housing market," concluded Mr. Hovnanian.
WEBCAST INFORMATION:
Hovnanian Enterprises will webcast its fiscal 2010 first quarter financial results conference call at 11:00 a.m. E.T. on Wednesday, March 3, 2009. The webcast can be accessed live through the "Investor Relations" section of Hovnanian Enterprises' Website 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 "Audio Archives" section of the Investor Relations page on the Hovnanian Website at http://www.khov.com. The archive will be available for 12 months.
About Hovnanian Enterprises:
Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, 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. Hovnanian® Homes®, Matzel & Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes, Oster Homes and CraftBuilt 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 2009 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 [email protected] or sign up at http://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 principles (GAAP) financial measures. The most directly comparable GAAP financial measure is net income (loss). The reconciliation of EBITDA and Adjusted EBITDA to net income (loss) is presented in a table attached to this earnings release.
Cash flow is a non-GAAP financial measure. The most directly comparable GAAP financial measure is Net Cash provided by (or used in) Operating Activities. The Company uses cash flow to mean the amount of Net Cash provided by (or used in) Operating Activities for the period, as reported on the Condensed Consolidated Statement of Cash Flows, excluding changes in mortgage notes receivable at the mortgage company, plus (or minus) the amount of Net Cash provided by (or used in) Investing Activities. For the first quarter of 2010, cash flow was negative $74.7 million, which was derived from $51.3 million from net cash used in operating activities less the change in mortgage notes receivable of $23.0 million less $0.4 million of net cash used in investing activities.
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's Form 10-K for the year ended October 31, 2009.
(Financial Tables Follow)
Hovnanian Enterprises, Inc.
January 31, 2010
Statements of Consolidated Operations
(Dollars in Thousands, Except Per Share)
Three Months Ended
January 31,
--------------------
2010 2009
---- ----
(Unaudited)
Total Revenues $319,645 $373,784
Costs and Expenses (a) 376,814 608,541
Gain on Extinguishment of Debt 2,574 79,520
Loss from Unconsolidated Joint Ventures (373) (22,589)
------ -------
Loss Before Income Taxes (54,968) (177,826)
Income Tax (Benefit) Provision (291,157) 584
-------- -------
Net Income (Loss) $236,189 $(178,410)
======== =========
Per Share Data:
Basic:
Income (Loss) Per Common Share $3.01 $(2.29)
Weighted Average Number of
Common Shares Outstanding (b) 78,553 78,043
Assuming Dilution:
Income (Loss) Per Common Share $2.97 $(2.29)
Weighted Average Number of
Common Shares Outstanding (b) 79,536 78,043
(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, 2010
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,
--------------------
2010 2009
---- ----
(Unaudited)
Loss Before Income Taxes $(54,968) $(177,826)
Inventory Impairment Loss and Land Option
Write-Offs 4,966 110,181
Unconsolidated Joint Venture Investment,
Intangible and Land-Related Charges - 21,824
Gain on Extinguishment of Debt (2,574) (79,520)
------ -------
Loss Before Income Taxes Excluding
Land-Related Charges, Intangible
Impairments and Gain on Extinguishment
of Debt(a) $(52,576) $(125,341)
======== =========
(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.
Hovnanian Enterprises, Inc.
January 31, 2010
Gross Margin
(Dollars in Thousands)
Homebuilding Gross Margin
Three Months Ended
January 31,
---------------------
2010 2009
---- ----
(Unaudited)
Sale of Homes $309,353 $359,052
Cost of Sales, Excluding Interest (a) 259,808 338,430
------- -------
Homebuilding Gross Margin, Excluding
Interest 49,545 20,622
Homebuilding Cost of Sales Interest 19,848 22,604
------ ------
Homebuilding Gross Margin, Including
Interest $29,697 $(1,982)
======= =======
Gross Margin Percentage, Excluding Interest 16.0% 5.7%
Gross Margin Percentage, Including Interest 9.6% (0.6)%
Land Sales Gross Margin
Three Months Ended
January 31,
---------------------
2010 2009
---- ----
(Unaudited)
Land Sales $700 $2,799
Cost of Sales, Excluding Interest (a) 8 2,245
--- -----
Land Sales Gross Margin, Excluding Interest 692 554
Land Sales Interest - 525
--- ---
Land Sales Gross Margin, Including Interest $692 $29
==== ===
(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 Consolidated
Statements of Operations.
Hovnanian Enterprises, Inc.
January 31, 2010
Reconciliation of Adjusted EBITDA to Net Income (Loss)
(Dollars in Thousands)
Three Months Ended
January 31,
--------------------
2010 2009
---- ----
(Unaudited)
Net Income (Loss) $236,189 $(178,410)
Income Tax (Benefit) Provision (291,157) 584
Interest Expense 45,455 47,359
------ ------
EBIT (a) (9,513) (130,467)
Depreciation 3,386 5,298
Amortization of Debt Costs 806 1,660
--- -----
EBITDA (b) (5,321) (123,509)
Inventory Impairment Loss and Land
Option Write-offs 4,966 110,181
Gain on Extinguishment of Debt (2,574) (79,520)
------ -------
Adjusted EBITDA (c) $(2,929) $(92,848)
======= ========
Interest Incurred $40,141 $53,510
Adjusted EBITDA to Interest Incurred (0.07) (1.74)
(a) EBIT is a non-GAAP financial measure. The most directly comparable
GAAP financial measure is net income (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 income (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 income (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, 2010
Interest Incurred, Expensed and Capitalized
(Dollars in Thousands)
Three Months Ended
January 31,
-------------------
2010 2009
---- ----
(Unaudited)
Interest Capitalized at
Beginning of Period $164,340 $170,107
Plus Interest Incurred 40,141 53,510
Less Interest Expensed 45,455 47,359
------ ------
Interest Capitalized at End
of Period (a) $159,026 $176,258
======== ========
(a) The Company incurred significant inventory impairments in recent
quarters, 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.
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share Amounts)
January 31, October 31,
2010 2009
---- ----
ASSETS (unaudited) (1)
Homebuilding:
Cash and cash equivalents $328,312 $419,955
-------- --------
Restricted cash 138,694 152,674
------- -------
Inventories:
Sold and unsold homes and lots under
development 611,636 631,302
------- -------
Land and land options held for future
development or sale 390,836 372,143
------- -------
Consolidated inventory not owned:
Specific performance options 24,117 30,534
Variable interest entities 38,506 45,436
Other options 24,860 30,498
------ ------
Total consolidated inventory
not owned 87,483 106,468
------ -------
Total inventories 1,089,955 1,109,913
--------- ---------
Investments in and advances to
unconsolidated joint ventures 39,392 41,260
------ ------
Receivables, deposits, and notes 55,044 44,418
------ ------
Property, plant, and equipment – net 71,090 73,918
------ ------
Prepaid expenses and other assets 94,212 98,159
------ ------
Total homebuilding 1,816,699 1,940,297
--------- ---------
Financial services:
Cash and cash equivalents 4,752 6,737
Restricted cash 1,867 4,654
Mortgage loans held for sale or
investment 45,528 69,546
Other assets 2,361 3,343
----- -----
Total financial services 54,508 84,280
------ ------
Income taxes receivable - including net
deferred tax benefits 228,980 -
------- ---
Total assets $2,100,187 $2,024,577
========== ==========
(1) Derived from the audited balance sheet as of October 31, 2009.
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share Amounts)
January 31, October 31,
2010 2009
---- ----
LIABILITIES AND EQUITY (unaudited) (1)
Homebuilding:
Nonrecourse land mortgages $3,658 $-
Accounts payable and other liabilities 289,927 325,722
Customers' deposits 14,856 18,811
Nonrecourse mortgages secured by operating
properties 21,300 21,507
Liabilities from inventory not owned 78,222 96,908
------ ------
Total homebuilding 407,963 462,948
------- -------
Financial services:
Accounts payable and other liabilities 9,608 14,507
Mortgage warehouse line of credit 33,264 55,857
------ ------
Total financial services 42,872 70,364
------ ------
Notes payable:
Senior secured notes 783,497 783,148
Senior notes 812,384 822,312
Senior subordinated notes 131,330 146,241
Accrued interest 32,835 26,078
------ ------
Total notes payable 1,760,046 1,777,779
Income tax payable - 62,354
--- ------
Total liabilities 2,210,881 2,373,445
--------- ---------
Equity:
Hovnanian Enterprises, Inc. stockholders'
equity deficit:
Preferred stock, $.01 par value -
authorized 100,000 shares; issued
5,600 shares at January 31, 2010
and at October 31, 2009 with a
liquidation preference of $140,000 135,299 135,299
Common stock, Class A, $.01 par value –
authorized 200,000,000 shares; issued
74,626,006 shares at January 31, 2010
and 74,376,946 shares at October 31,
2009 (including 11,694,720 shares at
January 31, 2010 and 11,694,720 shares
at October 31, 2009 held in Treasury) 746 744
Common stock, Class B, $.01 par value
(convertible to Class A at time of
sale) – authorized 30,000,000 shares;
issued 15,257,143 shares at January 31,
2010 and 15,265,067 shares at October 31,
2009 (including 691,748 shares at
January 31, 2010 and 691,748 shares at
October 31, 2009 held in Treasury) 153 153
Paid in capital - common stock 457,453 455,470
Accumulated deficit (589,818) (826,007)
Treasury stock - at cost (115,257) (115,257)
-------- --------
Total Hovnanian Enterprises, Inc.
stockholders' equity deficit (111,424) (349,598)
Non-controlling interest in consolidated
joint ventures 730 730
--- ---
Total equity deficit (110,694) (348,868)
-------- --------
Total liabilities and equity $2,100,187 $2,024,577
========== ==========
(1) Derived from the audited balance sheet as of October 31, 2009.
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Per Share Data)
(unaudited)
Three Months Ended
January 31,
2010 2009
---- ----
Revenues:
Homebuilding:
Sale of homes $309,353 $359,052
Land sales and other revenues 2,686 6,413
----- -----
Total homebuilding 312,039 365,465
Financial services 7,606 8,319
----- -----
Total revenues 319,645 373,784
------- -------
Expenses:
Homebuilding:
Cost of sales, excluding interest 259,816 340,675
Cost of sales interest 19,848 23,129
Inventory impairment loss and land
option write-offs 4,966 110,181
----- -------
Total cost of sales 284,630 473,985
Selling, general and administrative 43,072 71,044
------ ------
Total homebuilding expenses 327,702 545,029
Financial services 5,395 6,748
Corporate general and administrative(1) 16,213 30,910
Other interest(2) 25,607 24,230
Other operations 1,897 1,624
----- -----
Total expenses 376,814 608,541
------- -------
Gain on extinguishment of debt 2,574 79,520
----- ------
Loss from unconsolidated joint ventures (373) (22,589)
---- -------
Loss before income taxes (54,968) (177,826)
------- --------
State and federal income tax (benefit)
provision:
State 171 555
Federal (291,328) 29
-------- ---
Total taxes (291,157) 584
-------- ---
Net income (loss) $236,189 $(178,410)
======== =========
Per share data:
Basic:
Income (loss) per common share $3.01 $(2.29)
Weighted average number of common
shares outstanding 78,553 78,043
Assuming dilution:
Income (loss) per common share $2.97 $(2.29)
Weighted average number of common
shares outstanding 79,536 78,043
(1) Includes expenses related to canceled stock options of $12.3 million
for the three months ended January 31, 2009.
(2) Beginning in the third quarter of fiscal 2008, our assets that
qualify for interest capitalization (inventory under development) no
longer exceed our debt and therefore the portion of interest not
covered by qualifying assets must be directly expensed. As our
inventory balances have continued to decrease, the amount of interest
required to be directly expensed has increased.
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(UNAUDITED)
Communities Under Development
Three Months -01/31/2010
Net Contracts(1)
Three Months
Ended
January 31,
-----------
%
2010 2009 Change
---- ---- -------
Northeast
Home 130 139 (6.5)%
Dollars $55,379 $65,345 (15.3)%
Avg. Price $425,992 $470,108 (9.4)%
Mid-Atlantic
Home 126 136 (7.4)%
Dollars $46,949 $42,259 11.1%
Avg. Price $372,611 $310,728 19.9%
Midwest
Home 85 104 (18.3)%
Dollars $16,421 $18,836 (12.8)%
Avg. Price $193,188 $181,115 6.7%
Southeast
Home 72 117 (38.5)%
Dollars $17,236 $20,063 (14.1)%
Avg. Price $239,389 $171,479 39.6%
Southwest
Home 356 282 26.2%
Dollars $79,656 $60,497 31.7%
Avg. Price $223,753 $214,528 4.3%
West
Home 143 183 (21.9)%
Dollars $36,041 $30,519 18.1%
Avg. Price $252,035 $166,770 51.1%
Consolidated
Total
Home 912 961 (5.1)%
Dollars $251,682 $237,519 6.0%
Avg. Price $275,967 $247,158 11.7%
Unconsolidated
Joint Ventures
Home 49 43 14.0%
Dollars $23,628 $14,122 67.3%
Avg. Price $482,204 $328,442 46.8%
Total
Home 961 1,004 (4.3)%
Dollars $275,310 $251,641 9.4%
Avg. Price $286,483 $250,638 14.3%
DELIVERIES
INCLUDE EXTRAS
Deliveries
Three Months Ended
January 31,
-----------
%
2010 2009 Change
---- ---- -------
Northeast
Home 168 194 (13.4)%
Dollars $68,714 $86,236 (20.3)%
Avg. Price $409,012 $444,515 (8.0)%
Mid-Atlantic
Home 182 183 (0.5)%
Dollars $66,076 $68,995 (4.2)%
Avg. Price $363,055 $377,022 (3.7)%
Midwest
Home 111 113 (1.8)%
Dollars $23,404 $26,872 (12.9)%
Avg. Price $210,847 $237,805 (11.3)%
Southeast
Home 94 157 (40.1)%
Dollars $24,677 $34,015 (27.5)%
Avg. Price $262,521 $216,656 21.2%
Southwest
Home 379 370 2.4%
Dollars $82,124 $86,605 (5.2)%
Avg. Price $216,686 $234,068 (7.4)%
West
Home 157 191 (17.8)%
Dollars $44,358 $56,329 (21.3)%
Avg. Price $282,535 $294,916 (4.2)%
Consolidated
Total
Home 1,091 1,208 (9.7)%
Dollars $309,353 $359,052 (13.8)%
Avg. Price $283,550 $297,228 (4.6)%
Unconsolidated
Joint Ventures
Home 38 75 (49.3)%
Dollars $20,900 $24,512 (14.7)%
Avg. Price $550,000 $326,827 68.3%
Total
Home 1,129 1,283 (12.0)%
Dollars $330,253 $383,564 (13.9)%
Avg. Price $292,518 $298,959 (2.2)%
DELIVERIES
INCLUDE EXTRAS
Contract Backlog
January 31,
-----------
%
2010 2009 Change
---- ---- -------
Northeast
Home 419 442 (5.2)%
Dollars $181,398 $193,533 (6.3)%
Avg. Price $432,933 $437,857 (1.1)%
Mid-Atlantic
Home 330 338 (2.4)%
Dollars $131,587 $139,210 (5.5)%
Avg. Price $398,748 $411,864 (3.2)%
Midwest
Home 227 282 (19.5)%
Dollars $40,574 $54,552 (25.6)%
Avg. Price $178,740 $193,447 (7.6)%
Southeast
Home 113 123 (8.1)%
Dollars $28,652 $31,896 (10.2)%
Avg. Price $253,558 $259,317 (2.2)%
Southwest
Home 328 332 (1.2)%
Dollars $76,561 $75,797 1.0%
Avg. Price $233,421 $228,304 2.2%
West
Home 176 143 23.1%
Dollars $46,638 $36,043 29.4%
Avg. Price $264,994 $252,049 5.1%
Consolidated
Total
Home 1,593 1,660 (4.0)%
Dollars $505,410 $531,031 (4.8)%
Avg. Price $317,271 $319,898 (0.8)%
Unconsolidated
Joint Ventures
Home 170 231 (26.4)%
Dollars $88,377 $146,330 (39.6)%
Avg. Price $519,865 $633,463 (17.9)%
Total
Home 1,763 1,891 (6.8)%
Dollars $593,787 $677,361 (12.3)%
Avg. Price $336,807 $358,203 (6.0)%
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.
SOURCE Hovnanian Enterprises, Inc.
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