Hovnanian Enterprises Reports Fiscal 2016 First Quarter Results


RED BANK, N.J., March 09, 2016 (GLOBE NEWSWIRE) -- Hovnanian Enterprises, Inc. (NYSE:HOV), a leading national homebuilder, reported results for its fiscal first quarter ended January 31, 2016.

RESULTS FOR THE THREE MONTH PERIOD ENDED JANUARY 31, 2016:

  • Total revenues were $575.6 million in the first quarter of fiscal 2016, an increase of 29.1% compared with $445.7 million in the first quarter of fiscal 2015.
     
  • Homebuilding gross margin percentage, before interest expense and land charges included in cost of sales, was 16.6% for the first quarter ended January 31, 2016, compared with 18.2% in last year’s first quarter.
     
  • For the first quarter of fiscal 2016, Adjusted EBITDA was $38.8 million compared with $21.3 million during the first quarter of 2015, an 82.5% increase.
     
  • The pre-tax loss, excluding land related charges, in the first quarter of fiscal 2016 was $1.5 million compared with a pre-tax loss, excluding land related charges, of $17.5 million in the prior year’s first quarter.
     
  • The net loss was $16.2 million, including $11.7 million of land related charges, primarily related to land held for sale in Minnesota, a market we are exiting, or $0.11 per common share, for the first quarter of fiscal 2016, compared with a net loss of $14.4 million, including $2.2 million of land related charges, or $0.10 per common share, in the first quarter of the previous year.
     
  • The dollar value of net contracts, including unconsolidated joint ventures, during the first quarter of fiscal 2016 increased 28.2% to $668.5 million compared with $521.2 million in last year’s first quarter. The dollar value of consolidated net contracts increased 24.9% to $628.6 million for the three months ended January 31, 2016 compared with $503.2 million during the same quarter a year ago.
     
  • In the first quarter of fiscal 2016, the number of net contracts, including unconsolidated joint ventures, increased 16.5% to 1,592 homes from 1,366 homes during the first quarter of fiscal 2015. The number of consolidated net contracts, during the first quarter of fiscal 2016, increased 16.1% to 1,531 homes compared with 1,319 homes in the prior year’s first quarter.
     
  • Consolidated net contracts per active selling community increased 7.6% to 7.1 net contracts per active selling community for the first quarter of fiscal 2016 compared with 6.6 net contracts per active selling community in the first quarter of fiscal 2015. Net contracts per active selling community, including unconsolidated joint ventures, increased 6.1% to 7.0 net contracts per active selling community for the quarter ended January 31, 2016 compared with 6.6 net contracts, including unconsolidated joint ventures, per active selling community in the first quarter of fiscal 2015.
     
  • As of January 31, 2016, the dollar value of contract backlog, including unconsolidated joint ventures, was $1.44 billion, an increase of 49.1% compared with $965.2 million as of January 31, 2015. The dollar value of consolidated contract backlog, as of January 31, 2016, increased 39.1% to $1.29 billion compared with $925.5 million as of January 31, 2015.
     
  • As of January 31, 2016, the number of homes in contract backlog, including unconsolidated joint ventures, increased 30.2% to 3,238 homes compared with 2,487 homes as of January 31, 2015. The number of homes in consolidated contract backlog, as of January 31, 2016, increased 25.6% to 3,014 homes compared with 2,399 homes as of the end of the first quarter of fiscal 2015.
     
  • Consolidated deliveries were 1,422 homes in the first quarter of fiscal 2016, a 23.8% increase compared with 1,149 homes in the first quarter of fiscal 2015. For the three months ended January 31, 2016, deliveries, including unconsolidated joint ventures, increased 20.2% to 1,466 homes compared with 1,220 homes in the first quarter of the prior year.
     
  • As of end of the first quarter of fiscal 2016, active selling communities, including unconsolidated joint ventures, increased 9.6% to 228 communities compared with 208 communities at January 31, 2015. As of January 31, 2016, consolidated active selling communities increased 9.0% to 217 communities compared with 199 communities at the end of the prior year’s first quarter.
     
  • Total interest expense as a percentage of total revenues was 6.6% during the first quarter of fiscal 2016, a decrease of 160 basis points, compared with 8.2% in the same period of the previous year.
     
  • Total SG&A was $63.8 million, or 11.1% of total revenues, during the first quarter of fiscal 2016 compared with $64.6 million, or 14.5% of total revenues, in last year’s first quarter.
     
  • The contract cancellation rate, including unconsolidated joint ventures, for the first quarter of fiscal 2016 was 21%, compared with 18% in the first quarter of fiscal 2015.
     
  • The valuation allowance was $635.3 million as of January 31, 2016. 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.
     
  • During February 2016, the dollar value of consolidated net contracts increased 27.5% to $262.4 million compared with $205.8 million for February of 2015, and the number of consolidated net contracts increased 11.3% to 600 homes in February 2016 from 539 homes in February 2015.

LIQUIDITY AND INVENTORY AS OF JANUARY 31, 2016:

  • After paying off $233.5 million of debt that matured in October 2015 and January 2016, total liquidity at the end of the first quarter of fiscal 2016 was $152.1 million.
     
  • During the first quarter of fiscal 2016, land and land development spending was $116.6 million.
     
  • As of January 31, 2016, the land position, including unconsolidated joint ventures, was 38,070 lots, consisting of 18,732 lots under option and 19,338 owned lots, compared with a total of 36,767 lots as of January 31, 2015.
     
  • During the first quarter of fiscal 2016, approximately 3,300 lots, including unconsolidated joint ventures, were put under option or acquired in 39 communities.

FINANCIAL GUIDANCE:

  • Assuming no changes in current market conditions, we reiterate our prior guidance that total revenues for all of fiscal 2016 are expected to be between $2.7 billion and $3.1 billion and pretax profit excluding land related charges, gains or losses on extinguishment of debt and other non-recurring items such as legal settlements are expected to be between $40 million and $100 million for all of fiscal 2016.

COMMENTS FROM MANAGEMENT/UPDATED STRATEGIC FOCUS:

“We are pleased by our strong start to the fiscal year, which was highlighted by an 83% increase in adjusted EBITDA and a 49% increase in contract backlog dollars,” stated Ara K. Hovnanian, Chairman of the Board, President and Chief Executive Officer. “During our first quarter, our 29% total revenue growth resulted in a 500 basis point improvement in our total SG&A and total interest ratios in the aggregate. Rather than focusing on additional revenue growth beyond 2016, we now plan to focus on deleveraging our balance sheet and maximizing our profitability. As part of this strategy we have decided to exit the Minneapolis, MN and Raleigh, NC markets. Additionally, we plan to wind down our operations in Tampa, FL and the San Francisco Bay Area in Northern California by delivering the remaining homes in our existing communities. We are confident these decisions will lead to continued efficiencies and ultimately improved financial performance,” concluded Mr. Hovnanian.

WEBCAST INFORMATION:

Hovnanian Enterprises will webcast its fiscal 2016 first quarter financial results conference call at 10:30 a.m. E.T. on Wednesday, March 9, 2016. 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 “Past Events” 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®, INC.:

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, Maryland, Minnesota, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia, Washington, D.C. and West Virginia. The Company’s homes are marketed and sold under the trade names K. Hovnanian® Homes, Brighton Homes® and Parkwood Builders. As the developer of K. Hovnanian’s® Four Seasons communities, the Company is also one of the nation’s largest builders of active lifestyle communities.

Additional information on Hovnanian Enterprises, Inc., including a summary investment profile and the Company’s 2015 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 list, 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 and income taxes (“EBIT”) and before depreciation and amortization (“EBITDA”) and before inventory impairment loss and land option write-offs (“Adjusted EBITDA”) are not U.S. generally accepted accounting principles (GAAP) financial measures. The most directly comparable GAAP financial measure is net loss. The reconciliation of EBIT, EBITDA and Adjusted EBITDA to net loss is presented in a table attached to this earnings release.

Loss Before Income Taxes Excluding Land-Related Charges 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 to Loss Before Income Taxes is presented in a table attached to this earnings release.

Total liquidity is comprised of $147.1 million of cash and cash equivalents, $2.5 million of restricted cash required to collateralize letters of credit and $2.5 million of availability under the unsecured revolving credit facility as of January 31, 2016.

FORWARD-LOOKING STATEMENTS

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 forward-looking statements include but are not limited to statements related to the Company’s goals and expectations with respect to its financial results for the current or future financial periods, including total revenues and adjusted pretax profits. Although we believe that our plans, intentions and expectations reflected in, or suggested by, such forward-looking statements are reasonable, we can give no assurance that such plans, intentions or expectations will be achieved. By their nature, forward-looking statements: (1) speak only as of the date they are made, (2) are not guarantees of future performance or results and (3) are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from those forward-looking statements as a result of a variety of factors. Such risks, uncertainties and other factors include, but are not limited to, (1) changes in general and local economic, industry and business conditions and impacts of the sustained homebuilding downturn; (2) adverse weather and other environmental conditions and natural disasters; (3) levels of indebtedness and restrictions on the Company’s operations and activities imposed by the agreements governing the Company’s outstanding indebtedness; (4) the Company's sources of liquidity; (5) changes in credit ratings; (6) changes in market conditions and seasonality of the Company’s business; (7) the availability and cost of suitable land and improved lots; (8) shortages in, and price fluctuations of, raw materials and labor; (9) regional and local economic factors, including dependency on certain sectors of the economy, and employment levels affecting home prices and sales activity in the markets where the Company builds homes; (10) fluctuations in interest rates and the availability of mortgage financing; (11) changes in tax laws affecting the after-tax costs of owning a home; (12) operations through joint ventures with third parties; (13) government regulation, including regulations concerning development of land, the home building, sales and customer financing processes, tax laws and the environment; (14) product liability litigation, warranty claims and claims made by mortgage investors; (15) levels of competition; (16) availability and terms of financing to the Company; (17) successful identification and integration of acquisitions; (18) significant influence of the Company’s controlling stockholders; (19) availability of net operating loss carryforwards; (20) utility shortages and outages or rate fluctuations; (21) geopolitical risks, terrorist acts and other acts of war; (22) increases in cancellations of agreements of sale; (23) loss of key management personnel or failure to attract qualified personnel; (24) information technology failures and data security breaches; (25) legal claims brought against us and not resolved in our favor; and (26) certain risks, uncertainties and other factors described in detail in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2015 and subsequent filings with the Securities and Exchange Commission. Except as otherwise required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.

(Financial Tables Follow)

Hovnanian Enterprises, Inc.    
January 31, 2016    
Statements of Consolidated Operations    
(Dollars in Thousands, Except Per Share Data)    
  Three Months Ended 
  January 31, 
   2016   2015  
  (Unaudited) 
Total Revenues$575,605  $445,714  
Costs and Expenses (a) 587,319   466,846  
(Loss) Income from Unconsolidated Joint Ventures (1,480)  1,452  
Loss Before Income Taxes (13,194)  (19,680) 
Income Tax Provision (Benefit) 2,979   (5,304) 
Net Loss$(16,173) $(14,376) 
      
Per Share Data:    
Basic:     
Loss Per Common Share$(0.11) $(0.10) 
Weighted Average Number of    
Common Shares Outstanding (b) 147,139   146,929  
Assuming Dilution:    
Loss Per Common Share$(0.11) $(0.10) 
Weighted Average Number of    
Common Shares Outstanding (b) 147,139   146,929  
      
(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, 2016    
Reconciliation of Loss Before Income Taxes Excluding Land-Related Charges to Loss Before Income Taxes 
      
(Dollars in Thousands)    
      
  Three Months Ended 
  January 31, 
   2016   2015  
  (Unaudited) 
Loss Before Income Taxes$(13,194) $(19,680) 
Inventory Impairment Loss and Land Option Write-Offs 11,681   2,230  
Loss Before Income Taxes Excluding Land-Related Charges(a)$(1,513) $(17,450) 
      
(a) Loss Before Income Taxes Excluding Land-Related Charges is a non-GAAP Financial measure. The most directly comparable GAAP financial measure is Loss Before Income Taxes.

                                                                   

Hovnanian Enterprises, Inc.     
January 31, 2016     
Gross Margin     
(Dollars in Thousands)     
  Homebuilding Gross Margin 
  Three Months Ended 
  January 31, 
   2016   2015  
  (Unaudited) 
Sale of Homes $556,775  $433,471  
Cost of Sales, Excluding Interest and Land Charges (a)    464,146   354,379  
Homebuilding Gross Margin, Excluding Interest and Land Charges  92,629     79,092  
Homebuilding Cost of Sales Interest   16,843     11,299  
Homebuilding Gross Margin, Including Interest and Excluding Land Charges $75,786  $67,793  
      
Gross Margin Percentage, Excluding Interest and Land Charges  16.6%  18.2% 
Gross Margin Percentage, Including Interest and Excluding Land Charges  13.6%  15.6% 
      
  Land Sales Gross Margin 
  Three Months Ended 
  January 31, 
   2016   2015  
  (Unaudited) 
Land and Lot Sales  $-  $514  
Cost of Sales, Excluding Interest and Land Charges (a)    -   433  
Land and Lot Sales Gross Margin, Excluding Interest and Land Charges  -   81  
Land and Lot Sales Interest    -   19  
Land and Lot Sales Gross Margin, Including Interest and Excluding Land Charges  $-  $62  
      
(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 Condensed Consolidated Statements of Operations.


Hovnanian Enterprises, Inc.    
January 31, 2016    
Reconciliation of Adjusted EBITDA to Net Loss   
(Dollars in Thousands)   
 Three Months Ended
 January 31,
  2016   2015 
 (Unaudited)
Net Loss$(16,173) $(14,376)
Income Tax Provision (Benefit) 2,979   (5,304)
Interest Expense 38,068   36,389 
EBIT (a) 24,874   16,709 
Depreciation 865   849 
Amortization of Debt Costs 1,383   1,472 
EBITDA (b) 27,122   19,030 
Inventory Impairment Loss and Land Option Write-offs 11,681   2,230 
Adjusted EBITDA (c)$38,803  $21,260 
    
Interest Incurred$41,959  $41,472 
    
Adjusted EBITDA to Interest Incurred 0.92   0.51 
    
(a) EBIT is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net 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 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 loss. Adjusted EBITDA represents earnings before interest expense, income taxes, depreciation, amortization and inventory impairment loss and land option write-offs.
    
    
Hovnanian Enterprises, Inc.   
January 31, 2016   
Interest Incurred, Expensed and Capitalized   
(Dollars in Thousands)   
 Three Months Ended
 January 31,
  2016   2015 
 (Unaudited)
Interest Capitalized at Beginning of Period$123,898  $109,158 
Plus Interest Incurred   41,959     41,472 
Less Interest Expensed 38,068   36,389 
Less Interest Contributed to Unconsolidated Joint Venture (a) 10,676   - 
Interest Capitalized at End of Period (b)$117,113  $114,241 
    
(a) Represents capitalized interest which was included as part of the assets contributed to the joint venture the Company entered into in November 2015. There was no impact to the Condensed Consolidated Statement of Operations as a result of this transaction.
(b) 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) 
  
  January 31,
2016
(Unaudited)
  October 31,
2015
(1)
 
ASSETS      
       
Homebuilding:      
Cash and cash equivalents $147,124   $245,398  
Restricted cash and cash equivalents  6,865    7,299  
Inventories:      
Sold and unsold homes and lots under development  1,127,416    1,307,850  
Land and land options held for future development or sale  186,503    214,503  
Consolidated inventory not owned   338,067     122,225  
Total inventories  1,651,986    1,644,578  
Investments in and advances to unconsolidated joint ventures  69,094    61,209  
Receivables, deposits and notes, net  69,629    70,349  
Property, plant and equipment, net  46,010    45,534  
Prepaid expenses and other assets  81,186    77,671  
Total homebuilding  2,071,894    2,152,038  
       
Financial services:      
Cash and cash equivalents  5,454    8,347  
Restricted cash and cash equivalents  20,072    19,223  
Mortgage loans held for sale at fair value  164,961    130,320  
Other assets  2,971    2,091  
Total financial services  193,458    159,981  
Income taxes receivable – including net deferred tax benefits  287,388    290,279  
Total assets $2,552,740   $2,602,298  
  
(1) Derived from the audited balance sheet as of October 31, 2015. 


HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES 
CONDENSED CONSOLIDATED BALANCE SHEETS 
(In Thousands Except Share and Per Share Amounts) 
  
  January 31,
2016
(Unaudited)
  October 31,
2015
(1)
 
LIABILITIES AND EQUITY      
       
Homebuilding:      
Nonrecourse mortgages secured by inventory $128,668   $143,863  
Accounts payable and other liabilities  348,400    348,516  
Customers’ deposits  42,433    44,218  
Nonrecourse mortgages secured by operating properties  15,220    15,511  
Liabilities from inventory not owned  242,409    105,856  
Total homebuilding  777,130    657,964  
       
Financial services:      
Accounts payable and other liabilities  27,695    27,908  
Mortgage warehouse lines of credit  140,356    108,875  
Total financial services  168,051    136,783  
       
Notes payable:      
Revolving credit agreement  47,000    47,000  
Senior secured notes, net of discount  981,716    981,346  
Senior notes, net of discount  607,575    780,319  
Senior amortizing notes  10,516    12,811  
Senior exchangeable notes  74,720    73,771  
Accrued interest  29,172    40,388  
Total notes payable  1,750,699    1,935,635  
Total liabilities  2,695,880    2,730,382  
       
Stockholders’ equity deficit:      
Preferred stock, $0.01 par value - authorized 100,000 shares; issued and outstanding 5,600 shares with a liquidation preference of $140,000 at January 31, 2016 and at October 31, 2015  135,299    135,299  
Common stock, Class A, $0.01 par value – authorized 400,000,000 shares; issued 143,562,913 shares at January 31, 2016 and 143,292,881 shares at October 31, 2015 (including 11,760,763 shares at January 31, 2016 and October 31, 2015 held in treasury)  1,436    1,433  
Common stock, Class B, $0.01 par value (convertible to Class A at time of sale) – authorized 60,000,000 shares; issued 16,009,727 shares at January 31, 2016 and 15,676,829 shares at October 31, 2015 (including 691,748 shares at January 31, 2016 and October 31, 2015 held in treasury)  160    157  
Paid in capital – common stock  704,862    703,751  
Accumulated deficit  (869,537)   (853,364) 
Treasury stock – at cost  (115,360)   (115,360) 
Total stockholders’ equity deficit  (143,140)   (128,084) 
Total liabilities and equity $2,552,740   $2,602,298  
  
(1) Derived from the audited balance sheet as of October 31, 2015. 

 

HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Share and Per Share Data)
(Unaudited)
 
  Three Months Ended January 31,
   2016    2015 
Revenues:     
Homebuilding:     
Sale of homes $556,775   $433,471 
Land sales and other revenues  604    1,121 
Total homebuilding  557,379    434,592 
Financial services  18,226    11,122 
Total revenues  575,605    445,714 
      
Expenses:     
Homebuilding:     
Cost of sales, excluding interest  464,146    354,812 
Cost of sales interest  16,843    11,318 
Inventory impairment loss and land option write-offs  11,681    2,230 
Total cost of sales  492,670    368,360 
Selling, general and administrative  47,504    47,646 
Total homebuilding expenses  540,174    416,006 
      
Financial services  8,215    7,317 
Corporate general and administrative  16,321    16,908 
Other interest  21,225    25,071 
Other operations  1,384    1,544 
Total expenses  587,319    466,846 
(Loss) income from unconsolidated joint ventures  (1,480)   1,452 
Loss before income taxes  (13,194)   (19,680)
State and federal income tax provision (benefit):     
State  4,319    3,132 
Federal  (1,340)   (8,436)
Total income taxes  2,979    (5,304)
Net loss $(16,173)  $(14,376)
      
Per share data:     
Basic:     
Loss per common share $(0.11)  $(0.10)
Weighted-average number of common shares outstanding  147,139    146,929 
Assuming dilution:     
Loss per common share $(0.11)  $(0.10)
Weighted-average number of common shares outstanding  147,139    146,929 


HOVNANIAN ENTERPRISES, INC.  
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA EXCLUDES UNCONSOLIDATED JOINT VENTURES) Communities Under Development
Three Months - January 31, 2016
   
(UNAUDITED)       
  Net ContractsDeliveriesContract
  Three Months EndedThree Months EndedBacklog
  Jan 31,Jan 31,Jan 31,
   2016  2015 % Change 2016  2015 % Change 2016  2015 % Change
Northeast          
(NJ, PA)Home 92  107  (14.0)% 151  96  57.3% 234  157  49.0%
 Dollars$39,784 $56,753  (29.9)%$72,438 $50,642  43.0%$114,350 $79,438  43.9%
 Avg. Price$432,432 $530,402  (18.5)%$479,721 $527,521  (9.1)%$488,673 $505,973  (3.4)%
Mid-Atlantic           
(DE, MD, VA, WV)Home 260  211  23.2% 206  191  7.9% 507  391  29.7%
 Dollars$130,316 $102,109  27.6%$93,552 $80,911  15.6%$275,863 $210,121  31.3%
 Avg. Price$501,215 $483,931  3.6%$454,136 $423,620  7.2%$544,108 $537,394  1.2%
Midwest            
(IL, MN, OH) Home 207  208  (0.5)% 274  203  35.0% 577  670  (13.9)%
 Dollars$67,569 $70,981  (4.8)%$91,840 $64,410  42.6%$170,020 $195,167  (12.9)%
 Avg. Price$326,420 $341,257  (4.3)%$335,181 $317,290  5.6%$294,662 $291,294  1.2%
Southeast          
(FL, GA, NC, SC) Home 213  173  23.1% 116  121  (4.1)% 376  284  32.4%
 Dollars$90,259 $52,290  72.6%$39,194 $37,784  3.7%$157,001 $95,577  64.3%
 Avg. Price$423,754 $302,257  40.2%$337,884 $312,264  8.2%$417,556 $336,539  24.1%
Southwest          
(AZ, TX)Home 560  538  4.1% 550  477  15.3% 1,043  831  25.5%
 Dollars$208,642 $193,584  7.8%$204,189 $166,609  22.6%$427,164 $322,294  32.5%
 Avg. Price$372,575 $359,822  3.5%$371,253 $349,286  6.3%$409,553 $387,839  5.6%
West            
(CA)Home 199  82  142.7% 125  61  104.9% 277  66  319.7%
 Dollars$92,073 $27,440  235.5%$55,562 $33,115  67.8%$143,396 $22,936  525.2%
 Avg. Price$462,676 $334,629  38.3%$444,494 $542,866  (18.1)%$517,677 $347,520  49.0%
Consolidated Total          
 Home 1,531  1,319  16.1% 1,422  1,149  23.8% 3,014  2,399  25.6%
 Dollars$628,643 $503,157  24.9%$556,775 $433,471  28.4%$1,287,794 $925,533  39.1%
 Avg. Price$410,610 $381,469  7.6%$391,543 $377,259  3.8%$427,271 $385,800  10.7%
Unconsolidated Joint Ventures          
 Home 61  47  29.8% 44  71  (38.0)% 224  88  154.5%
 Dollars$39,821 $18,081  120.2%$20,187 $27,578  (26.8)%$151,716 $39,626  282.9%
 Avg. Price$652,803 $384,707  69.7%$458,795 $388,421  18.1%$677,304 $450,292  50.4%
Grand Total          
 Home 1,592  1,366  16.5% 1,466  1,220  20.2% 3,238  2,487  30.2%
 Dollars$668,464 $521,238  28.2%$576,962 $461,049  25.1%$1,439,510 $965,159  49.1%
 Avg. Price$419,889 $381,580  10.0%$393,562 $377,909  4.1%$444,568 $388,082  14.6%
           
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. 


HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA INCLUDES UNCONSOLIDATED JOINT VENTURES) Communities Under Development
    
(UNAUDITED)    Three Months - January 31, 2016
    
  Net ContractsDeliveriesContract
  Three Months EndedThree Months EndedBacklog
  Jan 31,Jan 31,Jan 31,
   2016  2015 % Change 2016  2015 % Change 2016  2015 % Change
Northeast          
(includes unconsolidated joint ventures)Home 87  108  (19.4)% 159  108  47.2% 269  166  62.0%
(NJ, PA)Dollars$35,494 $54,601  (35.0)%$74,694 $54,100  38.1%$129,276 $82,082  57.5%
 Avg. Price$407,974 $505,568  (19.3)%$469,773 $500,924  (6.2)%$480,580 $494,469  (2.8)%
Mid-Atlantic           
(includes unconsolidated joint ventures)Home 273  228  19.7% 216  210  2.9% 524  424  23.6%
(DE, MD, VA, WV)Dollars$136,738 $111,562  22.6%$99,219 $91,498  8.4%$284,425 $230,025  23.6%
 Avg. Price$500,874 $489,307  2.4%$459,347 $435,704  5.4%$542,796 $542,512  0.1%
Midwest            
(includes unconsolidated joint ventures)Home 207  208  (0.5)% 274  214  28.0% 577  676  (14.6)%
(IL, MN, OH) Dollars$67,569 $71,234  (5.1)%$91,840 $67,337  36.4%$170,020 $197,158  (13.8)%
 Avg. Price$326,420 $342,471  (4.7)%$335,181 $314,658  6.5%$294,662 $291,653  1.0%
Southeast          
(includes unconsolidated joint ventures)Home 220  189  16.4% 117  141  (17.0)% 391  309  26.5%
(FL, GA, NC, SC) Dollars$95,086 $58,794  61.7%$39,580 $45,834  (13.6)%$166,366 $105,952  57.0%
 Avg. Price$432,210 $311,080  38.9%$338,287 $325,067  4.1%$425,490 $342,887  24.1%
Southwest          
(includes unconsolidated joint ventures)Home 560  538  4.1% 550  477  15.3% 1,043  831  25.5%
(AZ, TX)Dollars$208,642 $193,584  7.8%$204,189 $166,609  22.6%$427,164 $322,294  32.5%
 Avg. Price$372,575 $359,822  3.5%$371,253 $349,286  6.3%$409,553 $387,839  5.6%
West            
(includes unconsolidated joint ventures)Home 245  95  157.9% 150  70  114.3% 434  81  435.8%
(CA)Dollars$124,935 $31,463  297.1%$67,440 $35,671  89.1%$262,259 $27,648  848.6%
 Avg. Price$509,937 $331,187  54.0%$449,597 $509,591  (11.8)%$604,284 $341,336  77.0%
Grand Total          
 Home 1,592  1,366  16.5% 1,466  1,220  20.2% 3,238  2,487  30.2%
 Dollars$668,464 $521,238  28.2%$576,962 $461,049  25.1%$1,439,510 $965,159  49.1%
 Avg. Price$419,889 $381,580  10.0%$393,562 $377,909  4.1%$444,568 $388,082  14.6%
Consolidated Total          
 Home 1,531  1,319  16.1% 1,422  1,149  23.8% 3,014  2,399  25.6%
 Dollars$628,643 $503,157  24.9%$556,775 $433,471  28.4%$1,287,794 $925,533  39.1%
 Avg. Price$410,610 $381,469  7.6%$391,543 $377,259  3.8%$427,271 $385,800  10.7%
Unconsolidated Joint Ventures          
 Home 61  47  29.8% 44  71  (38.0)% 224  88  154.5%
 Dollars$39,821 $18,081  120.2%$20,187 $27,578  (26.8)%$151,716 $39,626  282.9%
 Avg. Price$652,803 $384,707  69.7%$458,795 $388,421  18.1%$677,304 $450,292  50.4%
           
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. 



            

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