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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): September 3, 2003
HOVNANIAN ENTERPRISES, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware 1-8551 22-1851059
(State or Other Commission File Number) (I.R.S. Employer
Jurisdiction Identification No.)
of Incorporation)
10 Highway 35, P.O. Box 500
Red Bank, New Jersey 07701
(Address of Principal Executive Offices) (Zip Code)
(732) 747-7800
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits
(c) Exhibits.
Exhibit 99.1 Earnings Press Release - Third Quarter Ended
July 31, 2003.
Item 12. Results of Operations and Financial Condition
This Current Report on Form 8-K/A of Hovnanian Enterprises, Inc.
amends Hovnanian Enterprises, Inc.'s Current Report on Form 8-K filed on
September 3, 2003. This Amendment is being filed solely to remedy formatting
problems of tables within Exhibit 99.1 contained in the initial 8-K filing.
There are no changes other than these formatting changes to the initial 8-K
filing and all content and information contained in this Amendment remains
the same as that which was contained in the initial 8-K filing. This
Amendment supersedes in its entirety the initial 8-K filing.
On September 3, 2003, Hovnanian Enterprises, Inc. issued a press
release announcing its preliminary financial results for the third quarter
ended July 31, 2003. A copy of the Earnings Press Release is attached as
Exhibit 99.1.
The information in this Current Report on Form 8-K/A and the
Exhibit attached hereto is being furnished and shall not be deemed "filed"
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), or otherwise subject to the liability of that section,
nor shall it be deemed incorporated by reference in any filing under the
Securities Act of 1933,as amended, or the Exchange Act, except as shall be
expressly set forth by specific reference in such filing.
The Earnings Press Release contains information about EBITDA, a
non-GAAP financial measure. The most directly comparable GAAP financial
measure to EBITDA is net income. A reconciliation of EBITDA to net income is
contained in the Earnings Press Release.
Management believes EBITDA to be relevant and useful information
as EBITDA is a standard measure commonly reported and widely used by
analysts, investors and others to measure our financial performance and our
ability to service our debt obligation. EBITDA is also one of several
metrics used by our management to measure the cash generated from our
operations. EBITDA does not take into account substantial costs of doing
business, such as income taxes and interest expense. While many in the
financial community consider EBITDA to be an important measure of comparative
operating performance, it should be considered in addition to, but not as a
substitute for, income before income taxes, net income, cash flow provided by
operating activities and other measures of financial performance prepared in
accordance with accounting principles generally accepted in the United States
that are presented on the financial statements included in the Company's
reports filed with the SEC. Additionally, our calculation of EBITDA may be
different than the calculation used by other companies and, therefore,
comparability may be affected.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
HOVNANIAN ENTERPRISES, INC.
(Registrant)
By: /S/J. LARRY SORSBY
Name: J. Larry Sorsby
Title: Executive Vice President and
Chief Financial Officer
Date: September 3, 2003
INDEX TO EXHIBITS
Exhibit Number Exhibit
Exhibit 99.1 Earnings Press Release - Third Quarter Ended July 31, 2003.
3
2
4
TO BUSINESS EDITOR:
Hovnanian Enterprises Reports 76% Increase in Third Quarter EPS;
Posts Record Revenues, Earnings, Net Contracts, Deliveries and Backlog;
Raises Fiscal 2003 and 2004 EPS Projections
Highlights For The Quarter Ended July 31, 2003
-- Net earnings totaled $68.8 million, or $2.11 per fully diluted
share,
a 76% increase over the record $1.20 per share achieved in last
year's third quarter. Excluding earnings from acquisitions closed
within the last twelve months, more than 95% of the growth in
earnings came from organic operations.
-- Revenues increased to $848.8 million, up 20% from $704.6 million
during the same period last year. The Company's pretax margin
rose
to 12.9% from 8.8% in the prior year's third quarter.
-- Return on beginning equity for the latest twelve months ended
July 31, 2003 was 43.5%, a strong indication of the Company's
ability
to create shareholder value. Earnings for the latest twelve
months
grew to $6.70 per diluted share.
-- Management is increasing its projection for fiscal 2003 earnings
to
more than $7.50 per fully diluted share from the prior forecast of
$6.50 to $6.75 per share. The revised 2003 estimate represents
net
income of $245 million, an increase of 78% from fiscal 2002. For
fiscal 2004, earnings are expected to exceed $8.25 per fully
diluted
share, an increase from the prior estimate of $7.50 per share.
-- The Company's consolidated homebuilding gross margin, excluding
land
sales, was 25.5%, an increase of 330 basis points from the third
quarter of fiscal 2002.
-- Deliveries increased to 3,066 homes, an all-time record for any
quarter in the Company's 44 year history. Net contracts climbed
to
3,484 homes valued at $963.6 million, up 37% from last year's
results.
-- Contract backlog at July 31, 2003 was an all-time company record
of
5,718 homes with a sales value of $1.6 billion, an increase in
dollar
value of 33% from the same period last year.
-- In August, after the quarter end, Hovnanian closed the previously
announced acquisition of Great Western Homes, a builder of first-
time
and move-up homes throughout the Phoenix metropolitan area. The
acquisition marks Hovnanian's entry into the Phoenix marketplace
and
expands the Company's operations in the Southwestern United
States.
RED BANK, N.J., Sept. 3 /PRNewswire-FirstCall/ -- Hovnanian
Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, reported net
income of $68.8 million, or $2.11 per fully diluted share, on $848.8 million
in total revenue for the third quarter ended July 31, 2003. Last year's
third quarter net income was $39.2 million, or $1.20 per fully diluted share,
on revenue of $704.6 million. Pretax earnings from Financial Services
increased to $6.0 million, up 21% from last year's third quarter.
For the nine months ended July 31, 2003, revenue reached $2.16 billion,
up 25% compared to $1.72 billion in the year earlier period. Net income
for the first nine months of fiscal 2003 increased 100% to $166.1 million,
or $5.06 per fully diluted share compared to $83.3 million or $2.61 per
share in 2002. The dollar value of year-to-year net contracts during the
nine-month period increased by 36% and the number of home deliveries rose
by 20%.
Comments from Management
"We continued to set company records for growth and profitability
during the third quarter," said Ara K. Hovnanian, President and Chief
Executive Officer of the Company. "Our record earnings reflect the
favorable supply and demand trends in many of our markets that have allowed
us to increase home prices in many communities. Hovnanian is well
positioned to take advantage of these trends due to our diverse offering of
home styles aimed at a range of homebuyers from first-time homeowners to
active adults. Our teams of homebuilding professionals are contributing to
our success and creating value for our shareholders by continuing to
acquire and develop excellent land positions in supply constrained markets.
At the same time, our process improvements have further enhanced our
profitability through increased efficiencies in our housing production.
The result is a 330 basis point improvement in our consolidated
homebuilding gross margin for the quarter, compared with last year's third
quarter. The strength in underlying demographic trends, low mortgage rates
and healthy consumer demand have all contributed to our ability to raise
prices in many locations and thus consistently beat our internal
expectations," he added.
"Our record contract backlog provides good forward earnings visibility
as we approach the end of our fiscal year and look forward to fiscal 2004.
Our strong third quarter results and improved margins allow us to increase
our projection for the current fiscal year, ending October 31st, to more
than $7.50 per fully diluted share," Mr. Hovnanian stated. "This revised
earnings projection represents a 75% increase from last year's record
earnings of $4.28 per fully diluted share. Fiscal 2003 revenue is expected
to climb to over $3.0 billion, and deliveries are anticipated to exceed
11,000 homes. We now project that our fiscal 2004 revenues will exceed
$3.8 billion with more than 14,000 home deliveries. Earnings for fiscal
2004 are projected to exceed $8.25 per diluted share. We expect to enter
fiscal 2004, which begins in less than 60 days, with more than 45% of our
projected 2004 deliveries already in backlog," Mr. Hovnanian concluded.
"Earnings before interest expenses, income taxes, depreciation,
amortization and other non-cash write-offs and charges ("EBITDA") for the
third quarter rose 45% to $135.0 million from $93.0 million in the third
quarter of 2002," said J. Larry Sorsby, Executive Vice President and Chief
Financial Officer. "EBITDA covered the amount of interest incurred in the
quarter by 7.6 times. The Company's ratio of net recourse debt-to-equity
was 0.96 to 1.0 at July 31, 2003, after taking more than $100 million of
excess cash into consideration. This compares with a net recourse debt-to-
equity ratio of 1.13 to 1.0 at the end of the third quarter in 2002," he
added.
During the quarter, the Company increased the aggregate commitment
amount of its unsecured revolving credit facility from $513 million to $590
million. There was no outstanding balance on the revolving credit facility
at the end of the quarter, and the Company had more than $100 million in
excess cash. "The expansion of our credit facility improves our overall
liquidity, providing additional flexibility to fund ongoing operations and
our continued growth," Mr. Sorsby said. "We continue to achieve
significant growth while simultaneously lowering our debt ratios. The
Great Western Homes acquisition had no significant impact on the Company's
leverage, and we expect that the Company's average net leverage ratio for
all of fiscal 2003 will be approximately 1.0 to 1.0," he added.
Following the end of the quarter, Moody's Investor Service upgraded the
Company's credit rating on senior notes to Ba2 (from Ba3) and senior
subordinated notes to Ba3 (from B2). "The recent upgrades by both Moody's
and Standard and Poor's validate our successful geographic diversification
initiatives and improving credit profile," Mr. Sorsby concluded.
In Closing
"We remain focused on organic growth and profitability as well as the
successful integration of recent acquisitions," commented Mr. Hovnanian.
"Our Company continues to rank near the top of the housing industry for
both earnings growth and return on invested capital. We are confident that
the implementation of our growth strategies and our commitment to process
improvement will allow us to continue to set new benchmarks for
profitability in the future," he said.
Hovnanian Enterprises will webcast its third quarter earnings
conference call at 11:00 a.m. EDT tomorrow morning, September 4th, hosted
by Ara K. Hovnanian, President and Chief Executive Officer of the Company.
The webcast can be accessed live through the Investor Relations section of
Hovnanian Enterprises' Web site at www.khov.com and via
www.streetevents.com. For those who are not available to listen to the
live webcast, a replay will be available on both websites.
Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian,
Chairman, is headquartered in Red Bank, New Jersey. The Company is one of
the nation's largest homebuilders with operations in Arizona, California,
Maryland, Michigan, New Jersey, New York, North Carolina, Ohio,
Pennsylvania, South Carolina, Texas, Virginia and West Virginia. The
Company's homes are marketed and sold under the trade names K. Hovnanian,
Washington Homes, Goodman Homes, Matzel & Mumford, Diamond Homes,
Westminster Homes, Fortis Homes, Forecast Homes, Parkside Homes, Brighton
Homes, Parkwood Builders, Summit Homes and Great Western Homes. As the
developer of K. Hovnanian's Four Seasons communities, the Company is also
one of the nation's largest builders of active adult homes.
Additional information on Hovnanian Enterprises, Inc., including a
summary investment profile and the Company's 2002 annual report, can be
accessed through the Investors page of the Hovnanian Web site at
http://www.khov.com. To be added to Hovnanian's investor e-mail or fax
lists, please send an email to IR@khov.com or sign up at
http://www.khov.com.
Non-GAAP Financial Measures:
EBITDA is not a generally accepted accounting principle (GAAP)
financial measure. The most directly comparable GAAP financial measure is
net income. The reconciliation of EBITDA to net income is presented in a
table attached to this earnings release.
Note: All statements in this Press Release that are not historical
facts should be considered as "forward-looking statements" within the
meaning of the Private Securities Litigation Act of 1995. Such statements
involve known and unknown risks, uncertainties and other factors that may
cause actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such risks,
uncertainties and other factors include, but are not limited to, (1)
changes in general and local economic and business conditions, (2) weather
conditions, (3) changes in market conditions, (4) changes in home prices
and sales activity in the markets where the Company builds homes, (5)
government regulation, including regulations concerning development of
land, the homebuilding process and the environment, (6) fluctuations in
interest rates and the availability of mortgage financing,
(7) shortages in and price fluctuations of raw materials and labor, (8) the
availability and cost of suitable land and improved lots, (9) levels of
competition, (10) availability of financing to the Company, (11) utility
shortages and outages or rate fluctuations, (12) geopolitical risks,
terrorist acts and other acts of war and (13) other factors described in
detail in the Company's Form 10-K for the year ended October 31, 2002.
(Financial Tables Follow)
Hovnanian Enterprises, Inc.
July 31, 2003
Statements of Consolidated Income
(Dollars in Thousands, Except Per Share)
Three Months Ended Nine Months Ended
July 31, July 31,
2003 2002 2003 2002
--------- -------- ---------- ----------
Total Revenues $848,817 $704,636 $2,156,269 $1,719,696
Costs and Expenses 739,009 642,675 1,890,897 1,586,365
--------- -------- ---------- ---------
Income Before
Income Taxes 109,808 61,961 265,372 133,331
Provision for Taxes 41,006 22,774 99,241 50,073
--------- --------- ----------- ----------
Net Income $ 68,802 $ 39,187 $ 166,131 $ 83,258
========= ========= =========== ==========
Per Share Data:
Basic:
Income per common
share $2.25 $1.27 $5.35 $2.76
Weighted Average Number
of Common Shares
Outstanding 30,630 30,877 31,044 30,188
Assuming Dilution:
Income per common
share $2.11 $1.20 $5.06 $2.61
Weighted Average
Number of Common
Shares Outstanding 32,543 32,730 32,806 31,922
Hovnanian Enterprises, Inc.
July 31, 2003
Homebuilding Gross Margin
(Dollars in Thousands)
Homebuilding Gross Margin Homebuilding Gross Margin
Three Months Ended Nine Months Ended
July 31, July 31,
2003 2002 2003 2002
---------- ---------- ---------- ----------
(Unaudited)
Sale of Homes $830,734 $681,329 $2,104,788 $1,656,813
Cost of Sales 618,650 530,154 1,572,306 1,303,637
---------- ---------- ---------- ----------
Homebuilding
Gross Margin $212,084 $151,175 $ 532,482 $ 353,176
========== ========== ========== ===========
Gross Margin
Percentage 25.5% 22.2% 25.3% 21.3%
Land Sales Gross Margin Land Sales Gross Margin
Three Months Ended Nine Months Ended
July 31, July 31,
2003 2002 2003 2002
--------- -------- -------- ---------
Land and Lot Sales $3,314 $10,587 $13,064 $29,127
Cost of Sales 3,247 9,522 9,988 24,048
--------- -------- -------- --------
Land and Lot Gross
Margin $67 $1,065 $3,076 $5,079
========= ======== ======== ========
Hovnanian Enterprises, Inc.
July 31, 2003
Reconciliation of EBITDA to Net Income
(Dollars in Thousands)
Three Months Ended Nine Months Ended
July 31, July 31,
2003 2002 2003 2002
-------- ------- -------- -------
(Unaudited)
Net Income 68,802 39,187 166,131 83,258
Income Taxes 41,006 22,774 99,241 50,073
Interest expense 17,204 15,849 44,308 42,353
-------- ------- -------- --------
EBIT(1) 127,012 77,810 309,680 175,684
Depreciation 1,721 1,660 4,946 5,002
Amortization Debt Fees 1,977 316 2,614 1,805
Amortization of
Intangibles 4,336 1,166 8,965 2,722
Asset Write-off - 12,000 - 12,000
-------- ------- -------- --------
EBITDA(2) 135,046 92,952 326,205 197,213
======== ======= ======== ========
INTEREST INCURRED 17,807 15,746 48,232 42,002
EBITDA TO
INTEREST INCURRED 7.6 5.9 6.8 4.7
(1) EBIT is a non-GAAP financial measure. The most directly
comparable GAAP financial measure is net income. EBIT
represents earnings before interest expense and income taxes.
(2) EBITDA is a non-GAAP financial measure. The most directly
comparable GAAP financial measure is net income. EBITDA
represents earnings before interest expense, income taxes,
depreciation, amortization and other non-cash write-offs
and charges.
Hovnanian Enterprises, Inc.
July 31, 2003
Interest Incurred, Expensed and Capitalized
(Dollars is Thousands)
Three Months Ended Nine Months Ended
July 31, July 31,
2003 2002 2003 2002
------- ------- ------- -------
(Unaudited)
Interest Capitalized at
Beginning of Period $25,480 $24,876 $22,159 $25,124
Plus Interest Incurred 17,807 15,746 48,232 42,002
Less Interest Expensed 17,204 15,849 44,308 42,353
-------- ------- -------- --------
Interest Capitalized at
End of Period $26,083 $24,773 $26,083 $24,773
======== ======= ======== ========
Hovnanian Enterprises, Inc.
Summary Financial Projection
(Dollars in Millions except per share or where noted)
(Unaudited)
Trailing
Fiscal Year Fiscal Yea 12 Mos. Fiscal Year Fiscal Year
10/31/2001 10/31/2002 07/31/2003 2003Projection 2004 Projection
----------- ----------- ---------- -------------- ---------------
Total Revenues($ Billion) $1.74 $2.55 $2.99 > $3.00 > $3.80
Income Before Income Taxes $106.4 $226.6 $357.8 > $395.0 > $435.5
Pre-tax Margin 6.1% 8.9% 12.0% > 13.2% > 11.5%
Net Income $63.7 $137.7 $220.6 > $245.0 > $270.0
Earnings Per Share
(fully diluted) $2.29 $4.28 $6.70 > $7.50 > $8.25
* 2003 Projection is based on three quarters of actual data and one
quarter of projected results.
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands)
July 31, October 31,
ASSETS 2003 2002
----------- -----------
(unaudited)
Homebuilding:
Cash and cash equivalents................ $ 110,820 $ 262,675
----------- -----------
Inventories - At the lower of cost or fair
value:
Sold and unsold homes and lots under
development............................ 1,090,908 803,829
----------- -----------
Land and land options held for future
development or sale.................... 280,706 171,081
----------- -----------
Consolidated Inventory Not Owned:
Specific performance options.......... 72,436 67,183
Variable interest entities............ 93,252
Other options......................... 54,377 39,489
----------- -----------
Total Consolidated Inventory
Not Owned.......................... 220,065 106,672
----------- -----------
Total Inventories................ 1,591,679 1,081,582
----------- -----------
Receivables, deposits, and notes............ 45,742 26,276
----------- -----------
Property, plant, and equipment - net........ 27,110 19,242
----------- -----------
Senior residential rental properties - net.. 9,215 9,504
----------- -----------
Prepaid expenses and other assets........... 93,695 86,582
----------- -----------
Goodwill and indefinite life intangibles.... 82,283 82,275
----------- -----------
Definite life intangibles................... 59,244
----------- -----------
Total Homebuilding.................. 2,019,788 1,568,136
----------- -----------
Financial Services:
Cash and cash equivalents................. 8,819 7,315
Mortgage loans held for sale.............. 152,211 91,451
Other assets.............................. 3,119 11,226
----------- -----------
Total Financial Services................ 164,149 109,992
----------- -----------
Income Taxes Receivable - Including deferred
tax benefits............................... 11,717
----------- -----------
Total Assets................................ $2,195,654 $1,678,128
=========== ===========
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands Except Per Share Data)
July 31, October 31,
LIABILITIES AND STOCKHOLDERS' EQUITY 2003 2002
----------- -----------
(unaudited)
Homebuilding:
Nonrecourse land mortgages................ $ 29,173 $ 11,593
Accounts payable and other liabilities.... 211,054 198,290
Customers' deposits....................... 61,263 40,422
Nonrecourse mortgages secured by operating
properties............................... 3,177 3,274
Liabilities from inventory not owned...... 116,597 97,983
----------- -----------
Total Homebuilding...................... 421,264 351,562
----------- -----------
Financial Services:
Accounts payable and other liabilities.... 6,641 4,857
Mortgage warehouse line of credit......... 137,039 85,498
----------- -----------
Total Financial Services................ 143,680 90,355
----------- -----------
Notes Payable:
Term loan................................. 115,000 115,000
Senior notes.............................. 387,029 396,390
Senior subordinated notes................. 300,000 150,000
Accrued interest.......................... 17,738 9,555
----------- -----------
Total Notes Payable..................... 819,767 670,945
----------- -----------
Income Taxes Payable - Net of deferred tax
benefits................................... 777
----------- -----------
Total Liabilities....................... 1,384,711 1,113,639
----------- -----------
Minority interest from inventory not owned.. 80,137
----------- -----------
Minority interest from joint ventures....... 1,860 1,940
----------- -----------
Stockholders' Equity:
Preferred Stock, $.01 par value-authorized
100,000 shares; none issued..............
Common Stock, Class A, $.01 par value-
authorized 87,000,000 shares; issued
27,875,001 shares at July 31, 2003 and
27,453,994 shares at October 31,2002
(including 5,342,599 shares at July 31,
2003 and 4,343,240 shares at October 31,
2002 held in Treasury).................. 279 275
Common Stock, Class B, $.01 par value
(convertible to Class A at time of sale)
authorized 13,000,000 shares; issued
7,772,342 shares at July 31, 2003 and
7,788,061 shares at October 31, 2002
(including 345,874 shares at July 31, 2003
and October 31, 2002 held in Treasury)... 78 78
Paid in Capital........................... 160,479 152,977
Retained Earnings......................... 613,933 447,802
Deferred Compensation..................... (21)
Treasury Stock - at cost.................. (45,823) (38,562)
----------- -----------
Total Stockholders' Equity.................. 728,946 562,549
----------- -----------
Total Liabilities and Stockholders' Equity.. $2,195,654 $1,678,128
=========== ===========
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Data)
(Unaudited)
Three Months Ended Nine Months Ended
July 31, July 31,
------------------- ----------- ---------
2003 2002 2003 2002
--------- --------- --------- ----------
Revenues:
Homebuilding:
Sale of homes...... $ 830,734 $ 681,329 $2,104,788 $1,656,813
Land sales and
other revenues.... 4,441 12,651 16,445 34,564
--------- --------- ---------- ----------
Total
Homebuilding.... 835,175 693,980 2,121,233 1,691,377
Financial Services... 13,642 10,656 35,036 28,319
--------- --------- ---------- ---------
Total Revenues..... 848,817 704,636 2,156,269 1,719,696
--------- --------- ---------- ---------
Expenses:
Homebuilding:
Cost of sales...... 621,897 539,676 1,582,294 1,327,685
Selling, general
and administrative 66,136 52,882 180,035 138,177
Inventory impairment
loss.............. 149 426 1,633 2,755
--------- --------- ---------- ----------
Total Homebuilding 688,182 592,984 1,763,962 1,468,617
Financial Services... 7,635 5,694 19,629 16,156
Corporate General and
Administrative...... 16,978 12,195 45,026 33,700
Interest............. 17,204 15,849 44,308 42,353
Other Operations..... 9,010 3,953 17,972 13,539
Restructuring Charges/
Asset Writeoff...... 12,000 12,000
--------- --------- ---------- ----------
Total Expenses... 739,009 642,675 1,890,897 1,586,365
--------- --------- ---------- ----------
Income Before Income
Taxes................. 109,808 61,961 265,372 133,331
--------- --------- ---------- ----------
State and Federal Income Taxes:
State................ 5,439 1,679 11,874 5,086
Federal.............. 35,567 21,095 87,367 44,987
--------- --------- ---------- ----------
Total Taxes........ 41,006 22,774 99,241 50,073
--------- --------- ---------- ----------
Net Income............. $ 68,802 $ 39,187 $ 166,131 $ 83,258
========= ========= ========== ==========
Per Share Data:
Basic:
Income per common
share............... $2.25 $1.27 $5.35 $2.76
========= ========= ========== ==========
Weighted average number
of common shares
outstanding.......... 30,630 30,877 31,044 30,188
Assuming dilution:
Income per common share $2.11 $1.20 $5.06 $2.61
========= ========= ========== ==========
Weighted average number
of common shares
outstanding.......... 32,543 32,730 32,806 31,922
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
Communities Under Development
Three Months - 7/31/03
Net Contracts
Three Months Ended
31-Jul-03
2003 2002 % Change
---------- ---------- ----------
NE Region
Homes 889 534 66.5%
Dollars 261,625 148,390 76.3%
Avg. Price 294,291 277,884 5.9%
N. Carolina
Homes 396 296 33.8%
Dollars 72,322 55,660 29.9%
Avg. Price 182,630 188,039 (2.9%)
Metro D.C.
Homes 469 304 54.3%
Dollars 167,495 98,828 69.5%
Avg. Price 357,133 325,091 9.9%
California
Homes 1,093 1,121 (2.5%)
Dollars 336,889 288,885 16.6%
Avg. Price 308,224 257,703 19.6%
Texas
Homes 637 257 147.9%
Dollars 125,292 54,437 130.2%
Avg. Price 196,691 211,817 (7.1%)
Other
Homes N/A 37 N/A
Dollars N/A 6,443 N/A
Avg. Price N/A 174,148 N/A
Total
Homes 3,484 2,549 36.7%
Dollars 963,623 652,643 47.6%
Avg. Price 276,585 256,039 8.0%
DELIVERIES INCLUDE EXTRAS
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
Communities Under Development
Three Months - 7/31/03
Deliveries
Three Months Ended
31-Jul-03
2003 2002 %Change
---------- ---------- ----------
NE Region
Homes 647 570 13.5%
Dollars 210,039 177,153 18.6%
Avg. Price 324,635 310,795 4.5%
N. Carolina
Homes 365 393 (7.1%)
Dollars 65,399 72,437 (9.7%)
Avg. Price 179,175 184,318 (2.8%)
Metro D.C.
Homes 324 386 (16.1%)
Dollars 100,184 110,030 (8.9%)
Avg. Price 309,210 285,052 8.5%
California
Homes 1,090 926 17.7%
Dollars 325,205 242,631 34.0%
Avg. Price 298,353 262,021 13.9%
Texas
Homes 640 286 123.8%
Dollars 129,907 65,432 98.5%
Avg. Price 202,980 228,783 (11.3%)
Other
Homes N/A 86 N/A
Dollars N/A 13,646 N/A
Avg. Price N/A 158,674 N/A
Total
Homes 3,066 2,647 15.8%
Dollars 830,734 681,329 21.9%
Avg. Price 270,950 257,397 5.3%
DELIVERIES INCLUDE EXTRAS
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
Communities Under Development
Three Months - 7/31/03
Contract Backlog
31-Jul-03
2003 2002 % Change
---------- ---------- ----------
NE Region
Homes 2,266 1,578 43.6%
Dollars 613,884 442,037 38.9%
Avg. Price 270,911 280,125 (3.3%)
N. Carolina
Homes 672 564 19.1%
Dollars 128,997 108,502 18.9%
Avg. Price 191,960 192,380 (0.2%)
Metro D.C.
Homes 1,035 920 12.5%
Dollars 368,910 292,044 26.3%
Avg. Price 356,435 317,439 12.3%
California
Homes 1,103 1,007 9.5%
Dollars 359,821 286,876 25.4%
Avg. Price 326,220 284,882 14.5%
Texas
Homes 642 295 117.6%
Dollars 127,636 69,556 83.5%
Avg. Price 198,810 235,783 (15.7%)
Other
Homes N/A 39 N/A
Dollars N/A 6,456 N/A
Avg. Price N/A 165,547 N/A
Total
Homes 5,718 4,403 29.9%
Dollars 1,599,248 1,205,471 32.7%
Avg. Price 279,687 273,784 2.2%
DELIVERIES INCLUDE EXTRAS
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
Communities Under Development
Nine Months - 7/31/03
Net Contracts
Nine Months Ended
31-Jul-03
2003 2002 % Change
---------- ---------- ----------
NE Region
Homes 1,896 1,478 28.3%
Dollars 582,015 423,227 37.5%
Avg. Price 306,970 286,351 7.2%
N. Carolina
Homes 1,171 1,074 9.0%
Dollars 214,700 198,848 8.0%
Avg. Price 183,348 185,147 (1.0%)
Metro D.C.
Homes 1,229 1,085 13.3%
Dollars 422,477 341,919 23.6%
Avg. Price 343,757 315,133 9.1%
California
Homes 2,994 2,394 25.1%
Dollars 882,976 634,009 39.3%
Avg. Price 294,915 264,832 11.4%
Texas
Homes 1,722 778 121.3%
Dollars 338,197 171,409 97.3%
Avg. Price 196,398 220,320 (10.9%)
Other
Homes 2 172 (98.8%)
Dollars 313 26,861 (98.8%)
Avg. Price 156,700 156,170 0.3%
Total
Homes 9,014 6,981 29.1%
Dollars 2,440,678 1,796,273 35.9%
Avg. Price 270,765 257,309 5.2%
DELIVERIES INCLUDE EXTRAS
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
Communities Under Development
Nine Months - 7/31/03
Deliveries
Nine Months Ended
31-Jul-03
2003 2002 % Change
---------- ---------- ----------
NE Region
Homes 1,540 1,469 4.8%
Dollars 494,957 455,171 8.7%
Avg. Price 321,401 309,851 3.7%
N. Carolina
Homes 965 1,044 (7.6%)
Dollars 173,938 193,902 (10.3%)
Avg. Price 180,247 185,730 (3.0%)
Metro D.C.
Homes 968 944 2.5%
Dollars 305,927 258,755 18.2%
Avg. Price 316,040 274,105 15.3%
California
Homes 2,846 2,094 35.9%
Dollars 819,369 535,961 52.9%
Avg. Price 287,902 255,951 12.5%
Texas
Homes 1,519 746 103.6%
Dollars 309,336 172,778 79.0%
Avg. Price 203,645 231,606 (12.1%)
Other
Homes 9 258 (96.5%)
Dollars 1,261 40,246 (96.9%)
Avg. Price 140,111 155,992 (10.2%)
Total
Homes 7,847 6,555 19.7%
Dollars 2,104,788 1,656,813 27.0%
Avg. Price 268,228 252,756 6.1%
DELIVERIES INCLUDE EXTRAS
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
Communities Under Development
Nine Months - 7/31/03
Contract Backlog
31-Jul-03
2003 2002 % Change
---------- ---------- ----------
NE Region
Homes 2,266 1,578 43.6%
Dollars 613,884 442,037 38.9%
Avg. Price 270,911 280,125 (3.3%)
N. Carolina
Homes 672 564 19.1%
Dollars 128,997 108,502 18.9%
Avg. Price 191,960 192,380 (0.2%)
Metro D.C.
Homes 1,035 920 12.5%
Dollars 368,910 292,044 26.3%
Avg. Price 356,435 317,439 12.3%
California
Homes 1,103 1,007 9.5%
Dollars 359,821 286,876 25.4%
Avg. Price 326,220 284,882 14.5%
Texas
Homes 642 295 117.6%
Dollars 127,636 69,556 83.5%
Avg. Price 198,810 235,783 (15.7%)
Other
Homes N/A 39 N/A
Dollars N/A 6,456 N/A
Avg. Price N/A 165,547 N/A
Total
Homes 5,718 4,403 29.9%
Dollars 1,599,248 1,205,471 32.7%
Avg. Price 279,687 273,784 2.2%
DELIVERIES INCLUDE EXTRAS
SOURCE Hovnanian Enterprises, Inc.
-0- 09/03/2003
/CONTACT: Kevin C. Hake, Vice President and Treasurer, +1-732-747-
7800, or Brian A. Cheripka, Assistant Director of Investor Relations,
+1-732-747-7800, both of Hovnanian Enterprises, Inc./
/First Call Analyst: /
/Web site: http://www.khov.com /