UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
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 6, 2006
HOVNANIAN ENTERPRISES, INC.
(Exact Name of Registrant as Specified in Charter)
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Delaware (State or Other Jurisdiction of Incorporation) |
1-8551 (Commission File Number)
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22-1851059 (I.R.S. Employer Identification No.) |
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110 West Front Street
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)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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[ ] |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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[ ] |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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[ ] |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On September 6, 2006, Hovnanian Enterprises, Inc. issued a press release announcing its preliminary financial results for the fiscal third quarter ended July 31, 2006. A copy of the Earnings Press Release is attached as Exhibit 99.
The information in this Current Report on Form 8-K 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 obligations. 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 Securities and Exchange Commission. Additionally, our calculation of EBITDA may be different than the calculation used by other companies, and, therefore, comparability may be affected.
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Item 9.01. |
Financial Statements and Exhibits. |
(d) Exhibits.
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Exhibit 99 |
Earnings Press Release - Fiscal Third Quarter Ended July 31, 2006. |
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)
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By: |
/s/ J. Larry Sorsby |
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Name: |
J. Larry Sorsby |
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Title: |
Executive Vice President and |
Chief Financial Officer
Date: September 6, 2006
INDEX TO EXHIBITS
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Exhibit Number |
Exhibit |
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Exhibit 99 |
Earnings Press Release - Fiscal Third Quarter Ended July 31, 2006. |
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HOVNANIAN ENTERPRISES, INC. |
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News Release |
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Contact: |
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Kevin C. Hake |
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Jeffrey T. O’Keefe |
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Senior Vice President Finance and Treasurer |
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Director of Investor Relations |
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732-747-7800 |
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732-747-7800 |
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HOVNANIAN ENTERPRISES REPORTS FISCAL
2006 THIRD QUARTER RESULTS; MAINTAINS FISCAL
2006 EPS PROJECTION
Highlights for the Quarter Ended July 31, 2006
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• |
Net income available to common stockholders was $74.4 million for the third quarter, or $1.15 per fully diluted common share, compared with $116.1 million, or $1.76 per fully diluted common share, in the same quarter last year. Total revenues increased 18% over the prior year’s third quarter, to $1.6 billion. |
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• |
Management is reaffirming its earnings projection for the fiscal year ending October 31, 2006 of between $5.00 and $5.75 per fully diluted common share, compared to fiscal 2005 earnings of $7.16 per fully diluted common share. |
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• |
Earnings for the trailing twelve months ended July 31, 2006 represent a return on beginning common equity (ROE) of 28.3%, and a 17.5% after-tax return on beginning capital (ROC). |
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• |
Contract backlog as of July 31, 2006, excluding unconsolidated joint ventures, was 10,313 homes with a sales value of $3.6 billion, a 12.5% increase from the sales value of contract backlog at the end of last year’s third quarter. |
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• |
The number of net contracts for the third quarter of 2006, excluding unconsolidated joint ventures, declined 19.2% to 3,349 contracts. The dollar value of net contracts for the third quarter of 2006, excluding unconsolidated joint ventures, decreased 23.5% to $1.1 billion, compared to $1.4 billion in last year’s third quarter. The Company’s contract cancellation rate for the quarter was 33%, compared with 32% in the second quarter of 2006 and 24% in last year’s third quarter. |
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• |
Excluding unconsolidated joint ventures, the Company delivered 4,623 homes with an aggregate sales value of $1.5 billion in the third quarter of fiscal 2006, up 16.5% compared to deliveries of 3,967 homes with an aggregate sales value of $1.3 billion in the third quarter of fiscal 2005. In the third quarter of fiscal 2006, the Company delivered 498 homes in unconsolidated joint ventures, compared with 571 homes in last year’s third quarter. |
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• |
The Company was operating 436 active selling communities on July 31, 2006, excluding unconsolidated joint ventures, compared with 323 at the end of last year’s third quarter. |
RED BANK, NJ, September 6, 2006 – Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, reported net income available to common stockholders of $74.4 million, or $1.15 per fully diluted common share, on $1.6 billion in total revenues for the quarter ended July 31, 2006. For the nine-month period
1
ended July 31, 2006, revenues reached $4.4 billion, a 23% increase from $3.6 billion in revenues in the year earlier period. Net income available to common stockholders for the first nine months of fiscal 2006 was $256.8 million, or $3.95 per fully diluted common share, compared to $303.7 million, or $4.63 per fully diluted common share, in the same period a year ago. Common stockholders’ equity grew to $1.9 billion, or $31.07 per common share, at July 31, 2006, a 29% increase from $1.5 billion, or $24.16 per common share, on July 31, 2005.
Comments From Management
“Since the end of last summer, we have experienced a deteriorating environment for new home sales in many of our more regulated markets,” said Ara K. Hovnanian, President and Chief Executive Officer of the Company. “This current market slowdown is unique, because the economy is relatively strong – jobs are being created and interest rates remain at levels that are low on a historical basis. Under similar economic circumstances, the homebuilding market historically performed well. We believe the current slower housing market has resulted from the sudden and substantial increase in the inventory of homes offered for resale, combined with mounting negative sentiment among homebuyers that has caused many to postpone their purchase decisions.”
“We do not know how long the elevated levels of resale listings will persist and it is equally difficult to predict what events might cause a reversal in buyers’ sentiment. Thus, we are making decisions today with the assumption that current conditions will persist for the foreseeable future. We remain focused on competitively pricing our homes on a community-by-community basis to balance our margins and sales pace at an optimal level relative to market conditions,” Mr. Hovnanian continued.
“We continue to take down land and open new communities where the economic returns achieve acceptable returns under today’s sales pace and pricing assumptions. Conversely, we attempt to renegotiate option contracts when current conditions yield a lower than acceptable return on our investment,” Mr. Hovnanian said. “In situations where we have been unsuccessful in renegotiating, we believe the walk-away costs we have incurred are preferable to investing a much larger dollar amount to own land that would generate a sub-par return on capital. The flexibility we gain through the use of options allows us to maximize returns on capital over the long-term,” Mr. Hovnanian concluded.
“Our profits have been negatively impacted by the increased use of incentives and concessions, as well as expenses related to walking away from option deposits,” said J. Larry Sorsby, Executive Vice President and Chief Financial Officer. “We incurred $11.4 million of charge-offs associated with walk-away costs and an additional $0.8 million in land write-downs in the third quarter. We continue to renegotiate a significant number of our land contracts, and are likely to incur additional walk-away costs in conjunction with some of these situations. Although a certain number of such costs are factored into our guidance for the fourth quarter, we cannot quantify the exact amount or reserve for them until each contract renegotiation is finalized, thus creating an additional variable in our forecast. Based on current market conditions, we anticipate fully diluted earnings per common share in a range of $1.05 to $1.80 in our fourth quarter,” Mr. Sorsby continued. “Our balance sheet remains strong. We expect to achieve an average ratio of net recourse debt to capital at or below 50% for fiscal 2006.”
In Closing
“Our targeted hurdle rate on all new land acquisitions, combined with our discipline in evaluating such acquisitions on the basis of current sales absorption and pricing, acts as a self regulating mechanism in less robust markets by naturally slowing our acquisitions as sales conditions deteriorate. Despite the current slowdown, including deliveries from unconsolidated joint ventures, we still expect to deliver more than 20,000 homes and generate pretax income in the range of $535 million to $610 million, and net income in a range of $325 million to $375 million on revenues of greater than $6 billion in fiscal 2006. At the same time, during the current slowdown, our associates are working hard to maximize our homebuyers’ satisfaction through processes
2
and initiatives that we have implemented over the past few years, keeping us focused on our goal of delivering quality and value to each of our homebuyers,” Mr. Hovnanian concluded.
Hovnanian Enterprises will webcast its third quarter earnings conference call at 11:00 a.m. E.T. on Thursday, September 7, 2006, hosted by Ara K. Hovnanian, President and Chief Executive Officer of the Company. The webcast can be accessed live through the “Investor Relations” section of Hovnanian Enterprises’ Web site at http://www.khov.com. For those who are not available to listen to the live webcast, an archive of the broadcast will be available under the “Audio Archives” section of the Investor Relations page on the Hovnanian Web site at http://www.khov.com. The archive will be available for 12 months.
The Company’s summary projection for the fiscal year ending October 31, 2006 is available on the “Company Projections” section of the “Investor Relations” section of the Company’s website at http://www.khov.com.
About Hovnanian Enterprises
Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, Chairman, is headquartered in Red Bank, New Jersey. The Company is one of the nation’s largest homebuilders with operations in Arizona, California, Delaware, Florida, Georgia, 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, First Home Builders of Florida 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 2005 annual report, can be accessed through the “Investor Relations” section of 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.
Hovnanian Enterprises, Inc. is a member of the Public Home Builders Council of America (“PHBCA”) (http://www.phbca.org), a nonprofit group devoted to improving understanding of the business practices of America’s largest publicly-traded home building companies, the competitive advantages they bring to the home building market, and their commitment to creating value for their home buyers and stockholders. The PHBCA’s 14 member companies build one out of every five homes in the United States.
3
Non-GAAP Financial Measures:
Consolidated earnings before interest expense, income taxes, depreciation and amortization (“EBITDA”) is not a generally accepted accounting principle (GAAP) financial measure. The most directly comparable GAAP financial measure is net income. The reconciliation of EBITDA to net income is presented in a table attached to this earnings release.
Note: All statements in this Press Release that are not historical facts should be considered as “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks, uncertainties and other factors include, but are not limited to, (1) changes in general and local economic and business conditions, (2) adverse weather conditions and natural disasters, (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 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) 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, 2005.
(Financial Tables Follow)
4
Hovnanian Enterprises, Inc.
July 31, 2006
Statements of Consolidated
Income
(Dollars in Thousands, Except Per Share)
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Three
Months Ended, |
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Nine
Months Ended, |
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2006 |
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2005 |
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2006 |
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2005 |
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(Unaudited) |
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(Unaudited) |
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| Total Revenues |
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$ |
1,550,519 |
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$ |
1,312,726 |
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$ |
4,402,632 |
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$ |
3,576,756 |
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| Costs and Expenses |
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1,426,403 |
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1,131,742 |
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3,997,814 |
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3,097,914 |
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| Income/(Loss) From Unconsolidated Joint Ventures |
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(3,239 |
) |
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13,907 |
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13,833 |
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22,482 |
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| Income Before Income Taxes |
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120,877 |
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194,891 |
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418,651 |
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501,324 |
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| Provision for Taxes |
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43,830 |
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78,797 |
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153,859 |
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197,612 |
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| Net Income |
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77,047 |
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116,094 |
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264,792 |
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303,712 |
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| Less: Preferred Stock Dividends |
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2,668 |
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— |
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8,006 |
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— |
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| Net Income Available to Common Stockholders |
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$ |
74,379 |
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$ |
116,094 |
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$ |
256,786 |
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$ |
303,712 |
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| Per Share Data: |
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| Basic: |
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| Income per common share |
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$ |
1.18 |
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$ |
1.85 |
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$ |
4.09 |
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$ |
4.87 |
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| Weighted Average Number of Common Shares Outstanding |
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62,804 |
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62,754 |
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62,843 |
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62,412 |
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| Assuming Dilution: |
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| Income per common share |
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$ |
1.15 |
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$ |
1.76 |
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$ |
3.95 |
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$ |
4.63 |
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| Weighted Average Number of Common Shares Outstanding |
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64,460 |
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65,796 |
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64,989 |
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65,574 |
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5
Hovnanian Enterprises, Inc.
July 31, 2006
Gross Margin
(Dollars in Thousands)
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Homebuilding Gross Margin |
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Homebuilding Gross Margin |
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Three Months Ended |
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Nine Months Ended |
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2006 |
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2005 |
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2006 |
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2005 |
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(Unaudited) |
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(Unaudited) |
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Sale of Homes |
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$ |
1,499,826 |
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$ |
1,289,373 |
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$ |
4,225,571 |
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$ |
3,495,014 |
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Cost of Sales, excluding interest (a) |
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1,148,530 |
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939,815 |
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3,203,882 |
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2,571,916 |
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Homebuilding Gross Margin, excluding interest |
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$ |
351,296 |
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$ |
349,558 |
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$ |
1,021,689 |
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$ |
923,098 |
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Homebuilding Cost of Sales interest |
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25,551 |
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22,304 |
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61,523 |
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58,324 |
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Homebuilding Gross Margin, including interest |
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$ |
325,745 |
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$ |
327,254 |
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$ |
960,166 |
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$ |
864,774 |
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Gross Margin Percentage, excluding interest |
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23.4 |
% |
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27.1 |
% |
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24.2 |
% |
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26.4 |
% |
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Gross Margin Percentage, including interest |
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21.7 |
% |
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25.4 |
% |
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22.7 |
% |
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24.7 |
% |
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Land Sales Gross Margin |
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Land Sales Gross Margin |
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Three
Months Ended |
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Nine
Months Ended |
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2006 |
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2005 |
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2006 |
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2005 |
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(Unaudited) |
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(Unaudited) |
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| Land Sales |
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$ |
23,045 |
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$ |
441 |
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$ |
103,838 |
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$ |
24,618 |
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| Cost of Sales, excluding interest (a) |
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21,742 |
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|
387 |
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81,376 |
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16,369 |
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| Land Sales Gross Margin, excluding interest |
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$ |
1,303 |
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$ |
54 |
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$ |
22,462 |
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$ |
8,249 |
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| Land Sales interest |
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50 |
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28 |
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|
930 |
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|
239 |
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| Land Sales Gross Margin, including interest |
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$ |
1,253 |
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$ |
26 |
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$ |
21,532 |
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$ |
8,010 |
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(a) Does not include costs associated with walking away from land options which are recorded as inventory impairment losses in the income statement. |
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6
Hovnanian Enterprises, Inc.
July 31, 2006
Reconciliation of EBITDA to Net Income
(Dollars in Thousands)
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Three Months Ended |
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Nine Months Ended |
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2006 |
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2005 |
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2006 |
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2005 |
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(Unaudited) |
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(Unaudited) |
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Net Income |
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$ |
77,047 |
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$ |
116,094 |
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$ |
264,792 |
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$ |
303,712 |
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Income Taxes |
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|
43,830 |
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|
78,797 |
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153,859 |
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|
197,612 |
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Interest expense |
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|
26,250 |
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|
23,481 |
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|
64,622 |
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|
60,406 |
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EBIT 1 |
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$ |
147,127 |
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$ |
218,372 |
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$ |
483,273 |
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$ |
561,730 |
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Depreciation |
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4,269 |
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|
2,400 |
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|
10,588 |
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|
5,913 |
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Amortization of Debt Costs |
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|
644 |
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|
377 |
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|
1,653 |
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|
1,086 |
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Amortization of Intangibles |
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13,331 |
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|
11,781 |
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|
38,391 |
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|
32,255 |
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Other Amortization |
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— |
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— |
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— |
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|
528 |
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EBITDA2 |
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$ |
165,371 |
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$ |
232,930 |
|
$ |
533,905 |
|
$ |
601,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
INTEREST INCURRED |
|
$ |
41,515 |
|
$ |
27,991 |
|
$ |
108,569 |
|
$ |
71,939 |
|
|
|
|||||||||||||
|
EBITDA TO INTEREST INCURRED |
|
|
3.98 |
|
|
8.32 |
|
|
4.92 |
|
|
8.36 |
|
(1) EBIT is a non-GAAP financial measure. The comparable GAAP financial measure is net income. EBIT represents earnings before interest expense and income taxes.
(2) EBITDA is a non-GAAP financial measure. The comparable GAAP financial measure is net income. EBITDA represents earnings before interest expense, income taxes, depreciation and amortization.
Hovnanian Enterprises, Inc.
July 31, 2006
Interest Incurred,
Expensed and Capitalized
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
|
|
|
|
||||||||
|
|
|
2006 |
|
2005 |
|
2006 |
|
2005 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
(Unaudited) |
|
||||||||||
|
Interest Capitalized at Beginning of Period |
|
$ |
77,048 |
|
$ |
44,488 |
|
$ |
48,366 |
|
$ |
37,465 |
|
|
Plus Interest Incurred |
|
|
41,515 |
|
|
27,991 |
|
|
108,569 |
|
|
71,939 |
|
|
Less Interest Expensed |
|
|
26,250 |
|
|
23,481 |
|
|
64,622 |
|
|
60,406 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Capitalized at End of Period |
|
$ |
92,313 |
|
$ |
48,998 |
|
$ |
92,313 |
|
$ |
48,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
Hovnanian Enterprises, Inc.
July 31, 2006
Summary Financial Projection
(Dollars in Millions, except per share or where noted)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Yr. |
|
Fiscal Yr. |
|
Fiscal Yr. |
|
Trailing |
|
Projection |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
||||||||||||||||
|
Total Revenues ($ Billion) |
|
$ |
3.20 |
|
$ |
4.15 |
|
$ |
5.35 |
|
$ |
6.17 |
|
|
$6.1 - $6.3 |
|
|
Income Before Income Taxes |
|
$ |
411.5 |
|
$ |
549.8 |
|
$ |
780.6 |
|
$ |
697.9 |
|
|
$535 - $610 |
|
|
Pre-tax Margin |
|
|
12.9 |
% |
|
13.2 |
% |
|
14.6 |
% |
|
11.3 |
% |
|
8.8% - 9.7 |
% |
|
Net Income Available to Common Stockholders |
|
$ |
257.4 |
|
$ |
348.7 |
|
$ |
469.1 |
|
$ |
422.2 |
|
|
$325 - $375 |
|
|
Earnings Per Common Share (fully diluted) |
|
$ |
3.93 |
|
$ |
5.35 |
|
$ |
7.16 |
|
$ |
6.48 |
|
|
$5.00 - $5.75 |
|
(1)Net Income less preferred dividends paid.
8
HOVNANIAN ENTERPRISES,
INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share Amounts)
|
|
|
|
|
|
|
|
|
|
|
|
July
31, |
|
October
31, |
|
||
|
|
|
|
|
|
|
||
|
|
|
(unaudited) |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
| Homebuilding: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
36,787 |
|
$ |
201,641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Restricted cash |
|
|
9,500 |
|
|
17,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories - At the lower of cost or fair value: |
|
|
3,589,248 |
|
|
2,459,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Land and land options held for future development or sale |
|
|
501,059 |
|
|
595,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Inventory Not Owned: |
|
|
|
|
|
|
|
| Sold and unsold homes and lots under development | |||||||
|
Specific performance options |
|
|
12,872 |
|
|
9,289 |
|
| Variable interest entities |
|
|
369,705 |
|
|
242,825 |
|
|
Other options |
|
|
175,021 |
|
|
129,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consolidated Inventory Not Owned |
|
|
557,598 |
|
|
381,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Inventories |
|
|
4,647,905 |
|
|
3,436,620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in and advances to unconsolidated joint ventures |
|
|
217,153 |
|
|
187,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Receivables, deposits, and notes |
|
|
103,102 |
|
|
125,388 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant, and equipment – net |
|
|
111,542 |
|
|
96,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Prepaid expenses and other assets |
|
|
182,964 |
|
|
131,845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
32,658 |
|
|
32,658 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Definite life intangibles |
|
|
200,525 |
|
|
249,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Homebuilding |
|
|
5,542,136 |
|
|
4,478,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financial Services: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
11,015 |
|
|
9,632 |
|
| Restricted cash |
|
|
1,285 |
|
|
1,037 |
|
|
Mortgage loans held for sale |
|
|
174,747 |
|
|
211,248 |
|
| Other assets |
|
|
8,722 |
|
|
15,375 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Financial Services |
|
|
195,769 |
|
|
237,292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income Taxes Receivable – Including Deferred |
|
|
|
|
|
|
|
|
Tax Benefits |
|
|
150,795 |
|
|
9,903 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Assets |
|
$ |
5,888,700 |
|
$ |
4,726,138 |
|
|
|
|
|
|
|
|
|
|
9
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share Amounts)
|
|
|
|
|
|
|
|
|
|
|
|
July
31, |
|
October
31, |
|
||
|
|
|
|
|
|
|
||
|
|
|
(unaudited) |
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Homebuilding: |
|
|
|
|
|
|
|
| Nonrecourse land mortgages |
|
$ |
33,046 |
|
$ |
48,673 |
|
| Accounts payable and other liabilities |
|
|
546,668 |
|
|
510,529 |
|
| Customers’ deposits |
|
|
205,721 |
|
|
259,930 |
|
| Nonrecourse mortgages secured by operating properties |
|
|
23,852 |
|
|
24,339 |
|
| Liabilities from inventory not owned |
|
|
283,905 |
|
|
177,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Homebuilding |
|
|
1,093,192 |
|
|
1,020,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financial Services: |
|
|
|
|
|
|
|
| Accounts payable and other liabilities |
|
|
8,666 |
|
|
8,461 |
|
| Mortgage warehouse line of credit |
|
|
166,923 |
|
|
198,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Financial Services |
|
|
175,589 |
|
|
207,317 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Notes Payable: |
|
|
|
|
|
|
|
| Revolving credit agreement |
|
|
273,225 |
|
|
|
|
| Senior notes |
|
|
1,649,510 |
|
|
1,098,739 |
|
| Senior subordinated notes |
|
|
400,000 |
|
|
400,000 |
|
| Accrued interest |
|
|
30,762 |
|
|
26,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Notes Payable |
|
|
2,353,497 |
|
|
1,525,730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Liabilities |
|
|
3,622,278 |
|
|
2,753,532 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Minority interest from inventory not owned |
|
|
208,542 |
|
|
180,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Minority interest from consolidated joint ventures |
|
|
3,563 |
|
|
1,079 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders’ Equity: |
|
|
|
|
|
|
|
| Preferred Stock, $.01 par value-authorized 100,000 shares; issued 5,600 shares at July 31, 2006 and at October 31, 2005 with a liquidation preference of $140,000 |
|
|
135,299 |
|
|
135,389 |
|
| Common
Stock, Class A, $.01 par value-authorized 200,000,000 shares; |
|
|
|
|
|
|
|
| October 31, 2005 held in Treasury) | 586 | 580 | |||||
| Common Stock, Class B, $.01 par value (convertible to Class A at time of sale) authorized 30,000,000 shares; issued 15,360,360 shares at July 31, 2006 and 15,370,250 shares at October 31, 2005 (including 691,748 shares at July 31, 2006 and October 31, 2005 held in Treasury) |
|
|
154 |
|
|
154 |
|
| Paid in Capital – Common Stock |
|
|
247,488 |
|
|
236,001 |
|
| Retained Earnings |
|
|
1,779,738 |
|
|
1,522,952 |
|
| Deferred Compensation |
|
|
|
|
|
(19,648 |
) |
| Treasury Stock - at cost |
|
|
(108,948 |
) |
|
(84,071 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Stockholders’ Equity |
|
|
2,054,317 |
|
|
1,791,357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Liabilities and Stockholders’ Equity |
|
$ |
5,888,700 |
|
$ |
4,726,138 |
|
|
|
|
|
|
|
|
|
|
10
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
|
|
|
|
||||||||
|
|
|
2006 |
|
2005 |
|
2006 |
|
2005 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale of homes |
|
$ |
1,499,826 |
|
$ |
1,289,373 |
|
$ |
4,225,571 |
|
$ |
3,495,014 |
|
|
Land sales and other revenues |
|
|
28,032 |
|
|
4,820 |
|
|
113,947 |
|
|
32,747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Total Homebuilding |
|
|
1,527,858 |
|
|
1,294,193 |
|
|
4,339,518 |
|
|
3,527,761 |
|
|
Financial Services |
|
|
22,661 |
|
|
18,533 |
|
|
63,114 |
|
|
48,995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Total Revenues |
|
|
1,550,519 |
|
|
1,312,726 |
|
|
4,402,632 |
|
|
3,576,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales, excluding interest |
|
|
1,170,272 |
|
|
940,202 |
|
|
3,285,258 |
|
|
2,588,285 |
|
|
Cost of sales interest |
|
|
25,601 |
|
|
22,332 |
|
|
62,453 |
|
|
58,563 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Total Cost of Sales |
|
|
1,195,873 |
|
|
962,534 |
|
|
3,347,711 |
|
|
2,646,848 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
154,050 |
|
|
116,388 |
|
|
441,137 |
|
|
319,680 |
|
|
Inventory impairment and land option deposit Write-offs |
|
|
12,274 |
|
|
1,354 |
|
|
20,978 |
|
|
3,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Total Homebuilding |
|
|
1,362,197 |
|
|
1,080,276 |
|
|
3,809,826 |
|
|
2,969,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Services |
|
|
15,127 |
|
|
12,296 |
|
|
43,174 |
|
|
33,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate General and Administrative |
|
|
26,744 |
|
|
18,884 |
|
|
80,377 |
|
|
49,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Interest |
|
|
649 |
|
|
1,149 |
|
|
2,169 |
|
|
1,843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operations |
|
|
8,355 |
|
|
7,356 |
|
|
23,877 |
|
|
10,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible Amortization |
|
|
13,331 |
|
|
11,781 |
|
|
38,391 |
|
|
32,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Expenses |
|
|
1,426,403 |
|
|
1,131,742 |
|
|
3,997,814 |
|
|
3,097,914 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from unconsolidated joint ventures |
|
|
(3,239 |
) |
|
13,907 |
|
|
13,833 |
|
|
22,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes |
|
|
120,877 |
|
|
194,891 |
|
|
418,651 |
|
|
501,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State and Federal Income Taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State |
|
|
(3,897 |
) |
|
10,535 |
|
|
7,212 |
|
|
26,299 |
|
|
Federal |
|
|
47,727 |
|
|
68,262 |
|
|
146,647 |
|
|
171,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Taxes |
|
|
43,830 |
|
|
78,797 |
|
|
153,859 |
|
|
197,612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
77,047 |
|
|
116,094 |
|
|
264,792 |
|
|
303,712 |
|
|
Less: Preferred Stock Dividends |
|
|
2,668 |
|
|
|
|
|
8,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Available to Common Stockholders |
|
$ |
74,379 |
|
$ |
116,094 |
|
$ |
256,786 |
|
$ |
303,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common share |
|
$ |
1.18 |
|
$ |
1.85 |
|
$ |
4.09 |
|
$ |
4.87 |
|
|
Weighted average number of common shares outstanding |
|
|
62,804 |
|
|
62,754 |
|
|
62,843 |
|
|
62,412 |
|
|
Assuming dilution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common share |
|
$ |
1.15 |
|
$ |
1.76 |
|
$ |
3.95 |
|
$ |
4.63 |
|
|
Weighted average number of common shares outstanding |
|
|
64,460 |
|
|
65,796 |
|
|
64,989 |
|
|
65,574 |
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOVNANIAN ENTERPRISES, INC. |
|
|
|
Communities
Under Development |
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
Net Contracts (1) |
Deliveries |
|
|||||||||||||||
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
Three Months Ended |
Three Months Ended |
Contract Backlog |
|||||||||||||||
|
|
|
|
||||||||||||||||||
|
|
|
|
2006 |
|
2005 |
|
% Change |
2006 |
|
2005 |
|
% Change |
2006 |
|
2005 |
|
% Change |
|||
|
|
|
|
||||||||||||||||||
|
NorthEast Region (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes |
|
695 |
|
725 |
|
(4.1%) |
|
721 |
|
644 |
|
12.0% |
|
2,249 |
|
2,181 |
|
3.1% |
|
|
|
Dollars |
|
252,873 |
|
286,296 |
|
(11.7%) |
|
286,250 |
|
244,973 |
|
16.8% |
|
862,227 |
|
798,113 |
|
8.0% |
|
|
|
Avg. Price |
|
363,846 |
|
394,891 |
|
(7.9%) |
|
397,018 |
|
380,393 |
|
4.4% |
|
383,382 |
|
365,939 |
|
4.8% |
|
SouthEast Region (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes |
|
1,058 |
|
1,263 |
|
(16.2%) |
|
2,030 |
|
1,212 |
|
67.5% |
|
5,771 |
|
3,305 |
|
74.6% |
|
|
|
Dollars |
|
370,753 |
|
485,785 |
|
(23.7%) |
|
617,412 |
|
405,467 |
|
52.3% |
|
1,950,945 |
|
1,232,152 |
|
58.3% |
|
|
|
Avg. Price |
|
350,429 |
|
384,628 |
|
(8.9%) |
|
304,144 |
|
334,544 |
|
(9.1%) |
|
338,060 |
|
372,815 |
|
(9.3%) |
|
SouthWest Region |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes |
|
945 |
|
1,201 |
|
(21.3%) |
|
1,022 |
|
1,021 |
|
0.1% |
|
1,329 |
|
1,608 |
|
(17.4%) |
|
|
|
Dollars |
|
199,492 |
|
247,439 |
|
(19.4%) |
|
220,211 |
|
189,766 |
|
16.0% |
|
300,375 |
|
333,875 |
|
(10.0%) |
|
|
|
Avg. Price |
|
211,103 |
|
206,027 |
|
2.5% |
|
215,471 |
|
185,862 |
|
15.9% |
|
226,015 |
|
207,634 |
|
8.9% |
|
West Region |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes |
|
651 |
|
954 |
|
(31.8%) |
|
850 |
|
1,090 |
|
(22.0%) |
|
964 |
|
1,936 |
|
(50.2%) |
|
|
|
Dollars |
|
271,904 |
|
411,976 |
|
(34.0%) |
|
375,953 |
|
449,167 |
|
(16.3%) |
|
490,893 |
|
840,758 |
|
(41.6%) |
|
|
|
Avg. Price |
|
417,671 |
|
431,841 |
|
(3.3%) |
|
442,298 |
|
412,080 |
|
7.3% |
|
509,225 |
|
434,276 |
|
17.3% |
|
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes |
|
3,349 |
|
4,143 |
|
(19.2%) |
|
4,623 |
|
3,967 |
|
16.5% |
|
10,313 |
|
9,030 |
|
14.2% |
|
|
|
Dollars |
|
1,095,022 |
|
1,431,496 |
|
(23.5%) |
|
1,499,826 |
|
1,289,373 |
|
16.3% |
|
3,604,440 |
|
3,204,898 |
|
12.5% |
|
|
|
Avg. Price |
|
326,970 |
|
345,522 |
|
(5.4%) |
|
324,427 |
|
325,025 |
|
(0.2%) |
|
349,504 |
|
354,917 |
|
(1.5%) |
|
Unconsolidated Joint Ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes |
|
249 |
|
722 |
|
(65.5%) |
|
498 |
|
571 |
|
(12.8%) |
|
1,548 |
|
2,301 |
|
(32.7%) |
|
|
|
Dollars |
|
85,228 |
|
309,494 |
|
(72.5%) |
|
189,287 |
|
195,716 |
|
(3.3%) |
|
706,057 |
|
993,259 |
|
(28.9%) |
|
|
|
Avg. Price |
|
342,282 |
|
428,663 |
|
(20.2%) |
|
380,094 |
|
342,759 |
|
10.9% |
|
456,109 |
|
431,664 |
|
5.7% |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes |
|
3,598 |
|
4,865 |
|
(26.0%) |
|
5,121 |
|
4,538 |
|
12.8% |
|
11,861 |
|
11,331 |
|
4.7% |
|
|
|
Dollars |
|
1,180,250 |
|
1,740,990 |
|
(32.2%) |
|
1,689,113 |
|
1,485,089 |
|
13.7% |
|
4,310,497 |
|
4,198,157 |
|
2.7% |
|
|
|
Avg. Price |
|
328,030 |
|
357,860 |
|
(8.3%) |
|
329,840 |
|
327,256 |
|
0.8% |
|
363,418 |
|
370,502 |
|
(1.9%) |
|
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 third 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 third quarter include the effects of the First Home Builders of Florida and CraftBuilt Homes acquisitions, which closed in August 2005 and April 2006, respectively.
12
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG.
PRICE)
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Communities Under Development |
||||||||||||||||||||||||
|
|
|
|
|
Net Contracts (1) |
|
|
Deliveries |
|
|
Contract Backlog |
|
||||||||||||||||||
|
|
|
|
|
2006 |
|
|
2005 |
|
|
% Change |
|
2006 |
|
|
2005 |
|
|
% Change |
|
2006 |
|
|
2005 |
|
|
% Change |
|||
|
NorthEast Region (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes |
|
2,064 |
|
|
1,981 |
|
|
4.2 |
% |
|
1,979 |
|
|
2,056 |
|
|
(3.7 |
%) |
|
2,249 |
|
|
2,181 |
|
|
3.1 |
% |
|
|
|
Dollars |
|
754,855 |
|
|
729,637 |
|
|
3.5 |
% |
|
744,704 |
|
|
750,679 |
|
|
(0.8 |
%) |
|
862,227 |
|
|
798,113 |
|
|
8.0 |
% |
|
|
|
Avg. Price |
|
365,725 |
|
|
368,317 |
|
|
(0.7 |
%) |
|
376,303 |
|
|
365,116 |
|
|
3.1 |
% |
|
383,382 |
|
|
365,939 |
|
|
4.8 |
% |
|
SouthEast Region (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes |
|
3,673 |
|
|
3,630 |
|
|
1.2 |
% |
|
5,364 |
|
|
3,232 |
|
|
66.0 |
% |
|
5,771 |
|
|
3,305 |
|
|
74.6 |
% |
|
|
|
Dollars |
|
1,371,689 |
|
|
1,308,952 |
|
|
4.8 |
% |
|
1,647,282 |
|
|
1,004,201 |
|
|
64.0 |
% |
|
1,950,945 |
|
|
1,232,152 |
|
|
58.3 |
% |
|
|
|
Avg. Price |
|
373,452 |
|
|
360,593 |
|
|
3.6 |
% |
|
307,100 |
|
|
310,706 |
|
|
(1.2 |
%) |
|
338,060 |
|
|
372,815 |
|
|
(9.3 |
%) |
|
SouthWest Region |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes |
|
2,981 |
|
|
3,320 |
|
|
(10.2 |
%) |
|
2,948 |
|
|
2,636 |
|
|
11.8 |
% |
|
1,329 |
|
|
1,608 |
|
|
(17.4 |
%) |
|
|
|
Dollars |
|
635,986 |
|
|
647,975 |
|
|
(1.9 |
%) |
|
635,759 |
|
|
489,810 |
|
|
29.8 |
% |
|
300,375 |
|
|
333,875 |
|
|
(10.0 |
%) |
|
|
|
Avg. Price |
|
213,346 |
|
|
195,173 |
|
|
9.3 |
% |
|
215,658 |
|
|
185,815 |
|
|
16.1 |
% |
|
226,015 |
|
|
207,634 |
|
|
8.9 |
% |
|
West Region |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes |
|
1,943 |
|
|
3,076 |
|
|
(36.8 |
%) |
|
2,732 |
|
|
3,057 |
|
|
(10.6 |
%) |
|
964 |
|
|
1,936 |
|
|
(50.2 |
%) |
|
|
|
Dollars |
|
872,358 |
|
|
1,272,462 |
|
|
(31.4 |
%) |
|
1,197,826 |
|
|
1,250,324 |
|
|
(4.2 |
%) |
|
490,893 |
|
|
840,758 |
|
|
(41.6 |
%) |
|
|
|
Avg. Price |
|
448,975 |
|
|
413,674 |
|
|
8.5 |
% |
|
438,443 |
|
|
409,004 |
|
|
7.2 |
% |
|
509,225 |
|
|
434,276 |
|
|
17.3 |
% |
|
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes |
|
10,661 |
|
|
12,007 |
|
|
(11.2 |
%) |
|
13,023 |
|
|
10,981 |
|
|
18.6 |
% |
|
10,313 |
|
|
9,030 |
|
|
14.2 |
% |
|
|
|
Dollars |
|
3,634,888 |
|
|
3,959,026 |
|
|
(8.2 |
%) |
|
4,225,571 |
|
|
3,495,014 |
|
|
20.9 |
% |
|
3,604,440 |
|
|
3,204,898 |
|
|
12.5 |
% |
|
|
|
Avg. Price |
|
340,952 |
|
|
329,726 |
|
|
3.4 |
% |
|
324,470 |
|
|
318,278 |
|
|
1.9 |
% |
|
349,504 |
|
|
354,917 |
|
|
(1.5 |
%) |
|
Unconsolidated
Joint |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes |
|
903 |
|
|
1,426 |
|
|
(36.7 |
%) |
|
1,695 |
|
|
944 |
|
|
79.6 |
% |
|
1,548 |
|
|
2,301 |
|
|
(32.7 |
%) |
|
|
|
Dollars |
|
323,557 |
|
|
671,277 |
|
|
(51.8 |
%) |
|
648,301 |
|
|
331,033 |
|
|
95.8 |
% |
|
706,057 |
|
|
993,259 |
|
|
(28.9 |
%) |
|
|
|
Avg. Price |
|
358,314 |
|
|
470,742 |
|
|
(23.9 |
%) |
|
382,478 |
|
|
350,670 |
|
|
9.1 |
% |
|
456,109 |
|
|
431,664 |
|
|
5.7 |
% |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes |
|
11,564 |
|
|
13,433 |
|
|
(13.9 |
%) |
|
14,718 |
|
|
11,925 |
|
|
23.4 |
% |
|
11,861 |
|
|
11,331 |
|
|
4.7 |
% |
|
|
|
Dollars |
|
3,958,445 |
|
|
4,630,303 |
|
|
(14.5 |
%) |
|
4,873,872 |
|
|
3,826,047 |
|
|
27.4 |
% |
|
4,310,497 |
|
|
4,198,157 |
|
|
2.7 |
% |
|
|
|
Avg. Price |
|
342,308 |
|
|
344,696 |
|
|
(0.7 |
%) |
|
331,150 |
|
|
320,843 |
|
|
3.2 |
% |
|
363,418 |
|
|
370,502 |
|
|
(1.9 |
%) |
|
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 nine months 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 nine months include the effects of the Cambridge Homes, First Home Builders of Florida and CraftBuilt Homes acquisitions, which closed in March 2005, August 2005 and April 2006, respectively.
(4) The number and the dollar amount of net contracts in Unconsolidated Joint Ventures in the 2006 first nine months include the effect of the Town & Country Homes acquisition, which closed in March 2005.
13