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Press Release

Hovnanian Enterprises Reports Third Quarter Fiscal 2010 Results
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RED BANK, N.J., Sep 1, 2010 (GlobeNewswire via COMTEX) -- Hovnanian Enterprises, Inc. (NYSE:HOV), a leading national homebuilder, reported results for its third quarter and nine months ended July 31, 2010.

RESULTS FOR THE THREE AND NINE MONTH PERIODS ENDED JULY 31, 2010:

  --  Total revenues were $380.6 million for the third quarter of fiscal 2010
      compared with $387.1 million in the same quarter a year ago. For the
      first nine months of fiscal 2010, total revenues were $1.0 billion
      compared with $1.2 billion in the first nine months of the prior
      year.

  --  Homebuilding gross margin, before interest expense included in cost of
      sales, increased year-over-year for the sixth consecutive quarter to
      17.1% during the third quarter of 2010, compared to 9.1% in last year's
      third quarter.

  --  The pre-tax loss in the third quarter of fiscal 2010 was $79.8 million
      compared to $148.0 million in the third quarter of the prior year.

  --  For the third quarter ended July 31, 2010, the after-tax net loss was
      $72.9 million, or $0.92 per common share, compared with a net loss of
      $168.9 million, or $2.16 per common share, in the third quarter of
      fiscal 2009. The after-tax net income for the first nine months of 2010
      was $134.7 million, or $1.69 per fully diluted common share, compared
      with a net loss of $465.9 million, or $5.96 per common share, in the
      same period of the prior year. As a result of tax legislation changes,
      the after-tax net income for the first nine months of fiscal 2010
      included a federal income tax benefit of $291.3 million.

  --  Pre-tax land-related charges for the third quarter of fiscal 2010 were
      $49.0 million compared with $101.1 million in the fiscal 2009 third
      quarter. More than 75% of the land-related charges in the third quarter
      of fiscal 2010 were related to four communities in California and one
      community in New Jersey.

  --  Net contracts for the third quarter of fiscal 2010, excluding
      unconsolidated joint ventures, decreased 37% to 902 homes compared with
      last year's third quarter. For the first nine months of fiscal 2010, net
      contracts, excluding unconsolidated joint ventures, decreased 22% to
      3,128 compared with 3,989 net contracts in the first nine months of the
      prior year.

  --  At July 31, 2010, there were 183 active selling communities, excluding
      unconsolidated joint ventures, compared with 178 active selling
      communities at April 30, 2010. This is the first sequential increase in
      active selling communities in twelve quarters. There were 198 active
      selling communities at July 31, 2009.

  --  Deliveries, excluding unconsolidated joint ventures, were 1,316 homes
      for the third quarter of fiscal 2010, compared with 1,322 homes in the
      prior year's third quarter. For the nine months ended July 31, 2010,
      deliveries, excluding unconsolidated joint ventures, declined 10% to
      3,525 compared with 3,918 home deliveries in the same period of the
      prior year.

  --  The contract cancellation rate, excluding unconsolidated joint ventures,
      for the third quarter of fiscal 2010 was 23%, unchanged versus the
      fiscal 2009 third quarter.

  --  During the third quarter, the tax asset valuation allowance charge to
      earnings was $33.0 million. The valuation allowance was $746.6 million
      as of July 31, 2010. The valuation allowance is a non-cash reserve
      against the tax assets for GAAP purposes. For tax purposes, the tax
      deductions associated with the tax assets may be carried forward for 20
      years from the date the deductions were incurred.


CASH AND INVENTORY AS OF JULY 31, 2010:

  --  As of July 31, 2010, homebuilding cash was $492.4 million, including
      restricted cash required to collateralize letters of credit.

  --  Cash flow during the third quarter of fiscal 2010 was negative $29.8
      million. During the quarter, $19.3 million of cash was used to
      repurchase debt and $70.3 million of cash was spent to purchase
      approximately 1,300 lots.

  --  As of July 31, 2010, the consolidated land position was 32,485 lots,
      consisting of 14,793 lots under option and 17,692 owned lots.

  --  During the third quarter, approximately 850 lots were purchased within
      45 newly identified communities (communities that were controlled
      subsequent to January 31, 2009).

  --  Approximately 4,700 lots were optioned in 62 newly identified
      communities during the third quarter.

  --  Started unsold homes, excluding models, increased 6%, to 837 at July 31,
      2010 compared with 793 at the end of the third quarter a year ago.


OTHER KEY OPERATING DATA:

  --  Contract backlog, as of July 31, 2010, excluding unconsolidated joint
      ventures, was 1,375 homes with a sales value of $419.5 million, a
      decrease of 30% and 32%, respectively, compared to July 31, 2009.

  --  During the third quarter of fiscal 2010, home deliveries through
      unconsolidated joint ventures were 80 homes, compared with 69 homes in
      the fiscal 2009 third quarter. For the first nine months of fiscal 2010,
      197 homes were delivered through unconsolidated joint ventures, compared
      with 215 homes in the same period of the prior year.


COMMENTS FROM MANAGEMENT

"We anticipated that our third quarter net contracts would decline as some sales were pulled forward into the second quarter due to the expiration of the $8,000 federal homebuyers' tax credit," commented Ara K. Hovnanian, Chairman of the Board, President and Chief Executive Officer. "Concurrent with the expiration of the tax credit, we saw consumer confidence take a step backward, as the lack of job creation, volatile stock market prices, the oil spill in the Gulf of Mexico and general concerns about the health of the economy moved to the forefront. These factors combined to produce slower than expected sales throughout our third quarter."

"On the positive side, July sales were modestly better than June and we saw August sales improve even more significantly compared to June. However, we still did not reach the sales pace we saw in July and August of the prior year," continued Mr. Hovnanian. "While far from a normal sales pace, we are hopeful that the stronger selling environment will continue into September and October."

"Long-term demographic trends of household formation point to housing starts eventually bouncing off of 60-year lows. Nevertheless, job creation is the key to a housing recovery, which makes it difficult to predict how improvements in the economy and housing market play out over the short term. However, we are confident that we are taking appropriate steps at the bottom of this housing cycle to replenish our land supply and optimize our cost structure so that we are well positioned to participate in the inevitable housing rebound," concluded Mr. Hovnanian.

WEBCAST INFORMATION:

Hovnanian Enterprises will webcast its fiscal 2010 third quarter financial results conference call at 11:00 a.m. E.T. on Thursday, September 2, 2010. The webcast can be accessed live through the "Investor Relations" section of Hovnanian Enterprises' Website at http://www.khov.com. For those who are not available to listen to the live webcast, an archive of the broadcast will be available under the "Audio Archives" section of the Investor Relations page on the Hovnanian Website at http://www.khov.com. The archive will be available for 12 months.

ABOUT HOVNANIAN ENTERPRISES(R), 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, Kentucky, Maryland, Minnesota, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia. The Company's homes are marketed and sold under the trade names K. Hovnanian(R) Homes(R), Matzel & Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes and Oster Homes. As the developer of K. Hovnanian's(R) Four Seasons communities, the Company is also one of the nation's largest builders of active adult homes.

Additional information on Hovnanian Enterprises, Inc., including a summary investment profile and the Company's 2009 annual report, can be accessed through the "Investor Relations" section of the Hovnanian Enterprises' website at http://www.khov.com. To be added to Hovnanian's investor e-mail or fax lists, please send an e-mail to IR@khov.com or sign up at http://www.khov.com.

The Hovnanian Enterprises, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7499

NON-GAAP FINANCIAL MEASURES:

Consolidated earnings before interest expense, income taxes, depreciation and amortization ("EBITDA") and before inventory impairment loss and land option write-offs and gain on extinguishment of debt ("Adjusted EBITDA") are not U.S. generally accepted accounting principles (GAAP) financial measures. The most directly comparable GAAP financial measure is net (loss) income. The reconciliation of EBITDA and Adjusted EBITDA to net (loss) income is presented in a table attached to this earnings release.

Cash flow is a non-GAAP financial measure. The most directly comparable GAAP financial measure is Net Cash provided by (or used in) Operating Activities. The Company uses cash flow to mean the amount of Net Cash provided by (or used in) Operating Activities for the period, as reported on the Condensed Consolidated Statement of Cash Flows, excluding changes in mortgage notes receivable at the mortgage company, plus (or minus) the amount of Net Cash provided by (or used in) Investing Activities. For the third quarter of 2010, cash flow was negative $29.8 million, which was derived from $34.6 million from net cash used in operating activities plus the change in mortgage notes receivable of $3.4 million plus $1.4 million of net cash provided by investing activities.

Loss Before Income Taxes Excluding Land-Related Charges and Gain on Extinguishment of Debt is a non-GAAP financial measure. The most directly comparable GAAP financial measure is Loss Before Income Taxes. The reconciliation of Loss Before Income Taxes Excluding Land-Related Charges and Gain on Extinguishment of Debt to Loss Before Income Taxes is presented in a table attached to this earnings release.

Note: All statements in this Press Release that are not historical facts should be considered as "forward-looking statements" within the meaning of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks, uncertainties and other factors include, but are not limited to, (1) changes in general and local economic and industry and business conditions, (2) adverse weather conditions and natural disasters, (3) changes in market conditions and seasonality of the Company's business, (4) changes in home prices and sales activity in the markets where the Company builds homes, (5) government regulation, including regulations concerning development of land, the home building, sales and customer financing processes, and the environment, (6) fluctuations in interest rates and the availability of mortgage financing, (7) shortages in, and price fluctuations of, raw materials and labor, (8) the availability and cost of suitable land and improved lots, (9) levels of competition, (10) availability of financing to the Company, (11) utility shortages and outages or rate fluctuations, (12) levels of indebtedness and restrictions on the Company's operations and activities imposed by the agreements governing the Company's outstanding indebtedness, (13) operations through joint ventures with third parties, (14) product liability litigation and warranty claims, (15) successful identification and integration of acquisitions, (16) significant influence of the Company's controlling stockholders, (17) geopolitical risks, terrorist acts and other acts of war and (18) other factors described in detail in the Company's Form 10-K for the year ended October 31, 2009.

  Hovnanian Enterprises, Inc.
  July 31, 2010
  Statements of Consolidated Operations
  (Dollars in Thousands, Except Per Share Data)


                                                Three Months Ended       Nine Months Ended
                                                    July 31,                 July 31,
                                             -----------------------  -----------------------

                                                2010         2009        2010         2009
                                             -----------  ----------  -----------  ----------
                                                   (Unaudited)              (Unaudited)
  Total Revenues                                $380,600    $387,114   $1,018,830  $1,158,897
  Costs and Expenses (a)                         464,827     566,622    1,205,814   1,971,695
  Gain on Extinguishment of Debt                   5,256      37,016       25,047     427,804
  Loss from Unconsolidated Joint
   Ventures                                        (871)     (5,537)        (853)    (38,220)
                                             -----------  ----------  -----------  ----------
  Loss Before Income Taxes                      (79,842)   (148,029)    (162,790)   (423,214)

  Income Tax (Benefit) Provision                 (6,988)      20,883    (297,491)      42,729
                                             -----------  ----------  -----------  ----------

  Net (Loss) Income                            $(72,854)  $(168,912)     $134,701  $(465,943)
                                             ===========  ==========  ===========  ==========

  Per Share Data:
  Basic:
   (Loss) Income Per Common Share                $(0.92)     $(2.16)        $1.71     $(5.96)
   Weighted Average Number of Common
    Shares Outstanding (b)                        78,763      78,065       78,662      78,208
  Assuming Dilution:
   (Loss) Income Per Common Share                $(0.92)     $(2.16)        $1.69     $(5.96)
   Weighted Average Number of Common
    Shares Outstanding (b)                        78,763      78,065       79,873      78,208

  (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.
  July 31, 2010
  Reconciliation of Loss Before Income Taxes Excluding
   Land-Related Charges and Gain on Extinguishment of Debt to
   Loss Before Income Taxes
  (Dollars in Thousands)


                                                                   Three Months Ended        Nine Months Ended
                                                                        July 31,                  July 31,
                                                                ------------------------  ------------------------

                                                                   2010         2009         2010         2009
                                                                -----------  -----------  -----------  -----------
                                                                       (Unaudited)               (Unaudited)
  Loss Before Income Taxes                                       $ (79,842)   $(148,029)   $(162,790)   $(423,214)
  Inventory Impairment Loss and Land Option Write-Offs               48,959      101,130       55,111      521,505
  Unconsolidated Joint Venture Investment and Land-Related
   Charges                                                               --        4,646           --       35,197

  Gain on Extinguishment of Debt                                    (5,256)     (37,016)     (25,047)    (427,804)
                                                                -----------  -----------  -----------  -----------
  Loss Before Income Taxes Excluding Land-Related Charges

   and Gain on Extinguishment of Debt(a)                         $ (36,139)    $(79,269)   $(132,726)  $ (294,316)
                                                                ===========  ===========  ===========  ===========

  (a) Loss Before Income Taxes Excluding Land-Related Charges and Gain on Extinguishment of Debt is a non-GAAP
   Financial measure. The most directly comparable GAAP financial measure is Loss Before Income Taxes.

  Hovnanian Enterprises, Inc.
  July 31, 2010
  Gross Margin
  (Dollars in Thousands)

                                                Homebuilding Gross       Homebuilding Gross
                                                      Margin                   Margin
                                                Three Months Ended       Nine Months Ended
                                                     July 31,                 July 31,
                                              ----------------------  ------------------------

                                                  2010        2009        2010         2009
                                              ------------  --------  ------------  ----------
                                                   (Unaudited)               (Unaudited)
  Sale of Homes                                   $368,077  $367,141      $987,923  $1,107,891

  Cost of Sales, Excluding Interest (a)            305,054   333,887       821,776   1,022,496
                                              ------------  --------  ------------  ----------
  Homebuilding Gross Margin, Excluding
   Interest                                         63,023    33,254       166,147      85,395

  Homebuilding Cost of Sales Interest               20,918    20,363        59,290      67,752
                                              ------------  --------  ------------  ----------
  Homebuilding Gross Margin, Including
   Interest                                        $42,105   $12,891      $106,857     $17,643
                                              ============  ========  ============  ==========

  Gross Margin Percentage, Excluding
   Interest                                          17.1%      9.1%         16.8%        7.7%
  Gross Margin Percentage, Including
   Interest                                          11.4%      3.5%         10.8%        1.6%


                                                 Land Sales Gross
                                                      Margin           Land Sales Gross Margin
                                                Three Months Ended       Nine Months Ended
                                                     July 31,                 July 31,
                                              ----------------------  ------------------------

                                                  2010        2009        2010         2009
                                              ------------  --------  ------------  ----------
                                                   (Unaudited)               (Unaudited)
  Land Sales                                        $2,786    $8,488        $3,821     $14,388

  Cost of Sales, Excluding Interest (a)              1,000     3,982         1,020       7,197
                                              ------------  --------  ------------  ----------
  Land Sales Gross Margin, Excluding
   Interest                                          1,786     4,506         2,801       7,191

  Land Sales Interest                                1,266     4,258         1,487       6,038
                                              ------------  --------  ------------  ----------
  Land Sales Gross Margin, Including
   Interest                                           $520      $248        $1,314      $1,153
                                              ============  ========  ============  ==========

  (a) Does not include cost associated with walking away from land options or inventory
   impairment losses which are recorded as Inventory impairment loss and land option
   write-offs in the Consolidated Statements of Operations.

  Hovnanian Enterprises, Inc.
  July 31, 2010
  Reconciliation of Adjusted EBITDA to Net Income (Loss)
  (Dollars in Thousands)


                                        Three Months Ended       Nine Months Ended
                                            July 31,                 July 31,
                                     -----------------------  -----------------------

                                        2010         2009        2010         2009
                                     -----------  ----------  -----------  ----------
                                           (Unaudited)              (Unaudited)
  Net (Loss) Income                    $(72,854)  $(168,912)     $134,701  $(465,943)
  Income Tax (Benefit) Provision         (6,988)      20,883    (297,491)      42,729

  Interest Expense                        44,855      48,563      132,411     140,486
                                     -----------  ----------  -----------  ----------
  EBIT (a)                              (34,987)    (99,466)     (30,379)   (282,728)
  Depreciation                             2,632       3,828        9,089      13,114

  Amortization of Debt Costs                 845       1,628        2,466       4,859
                                     -----------  ----------  -----------  ----------
  EBITDA (b)                            (31,510)    (94,010)     (18,824)   (264,755)
  Inventory Impairment Loss and
   Land Option Write-offs                 48,959     101,130       55,111     521,505

  Gain on Extinguishment of Debt         (5,256)    (37,016)     (25,047)   (427,804)
                                     -----------  ----------  -----------  ----------

  Adjusted EBITDA (c)                    $12,193   $(29,896)      $11,240  $(171,054)
                                     ===========  ==========  ===========  ==========

  Interest Incurred                      $38,107     $43,944     $116,449    $145,042

  Adjusted EBITDA to Interest
   Incurred                                 0.32      (0.68)         0.10      (1.18)

  (a) EBIT is a non-GAAP financial measure. The most directly comparable GAAP
   financial measure is net (loss) income. 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) income. 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) income. Adjusted EBITDA represents earnings
   before interest expense, income taxes, depreciation, amortization, inventory
   impairment loss and land option write-offs, and gain on extinguishment of debt.


  Hovnanian Enterprises, Inc.
  July 31, 2010
  Interest Incurred, Expensed and Capitalized
  (Dollars in Thousands)


                                                   Three Months Ended      Nine Months Ended
                                                         July 31,               July 31,
                                                  ---------------------  ---------------------

                                                     2010        2009       2010        2009
                                                  -----------  --------  -----------  --------
                                                       (Unaudited)            (Unaudited)
  Interest Capitalized at Beginning of Period        $155,126  $179,282     $164,340  $170,107
  Plus Interest Incurred                               38,107    43,944      116,449   145,042

  Less Interest Expensed                               44,855    48,563      132,411   140,486
                                                  -----------  --------  -----------  --------

  Interest Capitalized at End of Period (a)          $148,378  $174,663     $148,378  $174,663
                                                  ===========  ========  ===========  ========

  (a) The Company incurred significant inventory impairments in recent years, which are
   determined based on total inventory including capitalized interest. However, the
   capitalized interest amounts are shown gross before allocating any portion of impairments
   to capitalized interest.


         HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
             CONDENSED CONSOLIDATED BALANCE SHEETS
             (In Thousands Except Share Amounts)


                                                   October
                                      July 31,       31,
                                        2010         2009
                                     -----------  ----------
  ASSETS                             (unaudited)     (1)

  Homebuilding:

   Cash and cash equivalents            $390,921    $419,955
                                     -----------  ----------


   Restricted cash                       117,792     152,674
                                     -----------  ----------

   Inventories:
     Sold and unsold homes and lots
      under development                  566,338     631,302
                                     -----------  ----------

     Land and land options held for
      future development or sale         433,853     372,143
                                     -----------  ----------

     Consolidated inventory not
      owned:
       Specific performance options       20,679      30,534
       Variable interest entities         34,817      45,436

       Other options                      13,135      30,498
                                     -----------  ----------

       Total consolidated inventory
        not owned                         68,631     106,468
                                     -----------  ----------


       Total inventories               1,068,822   1,109,913
                                     -----------  ----------

   Investments in and advances to
    unconsolidated joint ventures         37,553      41,260
                                     -----------  ----------


   Receivables, deposits, and notes       51,476      44,418
                                     -----------  ----------

   Property, plant, and equipment
    -- net                                66,093      73,918
                                     -----------  ----------

   Prepaid expenses and other
    assets                                87,844      98,159
                                     -----------  ----------


       Total homebuilding              1,820,501   1,940,297
                                     -----------  ----------

  Financial services:
   Cash and cash equivalents              19,315       6,737
   Restricted cash                         3,648       4,654
   Mortgage loans held for sale or
    investment                            61,456      69,546

   Other assets                            4,857       3,343
                                     -----------  ----------


       Total financial services           89,276      84,280
                                     -----------  ----------


  Total assets                        $1,909,777  $2,024,577
                                     ===========  ==========

  (1) Derived from the audited balance sheet as of October
   31, 2009.


            HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED BALANCE SHEETS
                 (In Thousands Except Share Amounts)


                                           July 31,    October 31,
                                             2010         2009
                                          -----------  -----------
  LIABILITIES AND EQUITY                  (unaudited)      (1)

  Homebuilding:
   Nonrecourse land mortgages                  $5,425          $--
   Accounts payable and other
    liabilities                               282,009      325,722
   Customers' deposits                         11,268       18,811
   Nonrecourse mortgages secured by
    operating properties                       20,875       21,507

   Liabilities from inventory not owned        59,590       96,908
                                          -----------  -----------


     Total homebuilding                       379,167      462,948
                                          -----------  -----------

  Financial services:
   Accounts payable and other
    liabilities                                13,919       14,507

   Mortgage warehouse line of credit           55,958       55,857
                                          -----------  -----------


     Total financial services                  69,877       70,364
                                          -----------  -----------

  Notes payable:
   Senior secured notes                       784,219      783,148
   Senior notes                               711,508      822,312
   Senior subordinated notes                  120,170      146,241

   Accrued interest                            33,095       26,078
                                          -----------  -----------


     Total notes payable                    1,648,992    1,777,779
                                          -----------  -----------


   Income tax payable                          19,167       62,354
                                          -----------  -----------


  Total liabilities                         2,117,203    2,373,445
                                          -----------  -----------

  Equity:
  Hovnanian Enterprises, Inc.
   stockholders' equity deficit:
   Preferred stock, $.01 par value -
    authorized 100,000 shares; issued
   5,600 shares at July 31, 2010 and at
    October 31, 2009 with a liquidation
   preference of $140,000                     135,299      135,299
   Common stock, Class A, $.01 par value
    -- authorized 200,000,000 shares;
   issued 74,808,246 shares at July 31,
    2010 and 74,376,946 shares at
   October 31, 2009 (including
    11,694,720 shares at July 31, 2010
    and
   October 31, 2009 held in Treasury)             748          744
   Common stock, Class B, $.01 par value
    (convertible to Class A at time
   of sale) -- authorized 30,000,000
    shares; issued 15,257,043 shares at
   July 31, 2010 and 15,265,067 shares
    at October 31, 2009 (including
   691,748 shares at July 31, 2010 and
    October 31, 2009 held in Treasury)            153          153
   Paid in capital - common stock             462,207      455,470
   Accumulated deficit                      (691,306)    (826,007)

   Treasury stock - at cost                 (115,257)    (115,257)
                                          -----------  -----------

     Total Hovnanian Enterprises, Inc.
      stockholders' equity deficit          (208,156)    (349,598)

   Non-controlling interest in
    consolidated joint ventures                   730          730
                                          -----------  -----------


     Total equity deficit                   (207,426)    (348,868)
                                          -----------  -----------


  Total liabilities and equity             $1,909,777   $2,024,577
                                          ===========  ===========

  (1) Derived from the audited balance sheet as of October 31,
   2009.


                 HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (In Thousands Except Per Share Data)
                                  (unaudited)

                                Three Months Ended     Nine Months Ended July
                                      July 31,                  31,

                                  2010       2009        2010        2009
                               ---------  ----------  ----------  -----------
  Revenues:
   Homebuilding:
     Sale of homes              $368,077    $367,141    $987,923   $1,107,891
     Land sales and other
      revenues                     3,770      11,044       7,489       24,731
                               ---------  ----------  ----------  -----------

       Total homebuilding        371,847     378,185     995,412    1,132,622

   Financial services              8,753       8,929      23,418       26,275
                               ---------  ----------  ----------  -----------


       Total revenues            380,600     387,114   1,018,830    1,158,897
                               ---------  ----------  ----------  -----------

  Expenses:
   Homebuilding:
     Cost of sales, excluding
      interest                   306,054     337,869     822,796    1,029,693
     Cost of sales interest       22,184      24,621      60,777       73,790
     Inventory impairment
      loss and land option
      write-offs                  48,959     101,130      55,111      521,505
                               ---------  ----------  ----------  -----------

       Total cost of sales       377,197     463,620     938,684    1,624,988

     Selling, general and
      administrative              42,184      55,264     127,615      187,130
                               ---------  ----------  ----------  -----------

       Total homebuilding
        expenses                 419,381     518,884   1,066,299    1,812,118

   Financial services              6,168       6,345      17,194       19,568

   Corporate general and
    administrative (1)            14,816      15,494      45,232       64,763

   Other interest (2)             22,671      23,942      71,634       66,696


   Other operations                1,791       1,957       5,455        8,550
                               ---------  ----------  ----------  -----------


       Total expenses            464,827     566,622   1,205,814    1,971,695
                               ---------  ----------  ----------  -----------

  Gain on extinguishment of
   debt                            5,256      37,016      25,047      427,804
                               ---------  ----------  ----------  -----------

  Loss from unconsolidated
   joint ventures                  (871)     (5,537)       (853)     (38,220)
                               ---------  ----------  ----------  -----------


  Loss before income taxes      (79,842)   (148,029)   (162,790)    (423,214)
                               ---------  ----------  ----------  -----------

  State and federal income
   tax (benefit) provision:
   State                         (6,988)       1,542     (6,160)       23,318

   Federal                            --      19,341   (291,331)       19,411
                               ---------  ----------  ----------  -----------


     Total taxes                 (6,988)      20,883   (297,491)       42,729
                               ---------  ----------  ----------  -----------


  Net (loss) income            $(72,854)  $(168,912)    $134,701   $(465,943)
                               =========  ==========  ==========  ===========

  Per share data:
  Basic:
   (Loss) income per common
    share                        $(0.92)     $(2.16)       $1.71      $(5.96)
   Weighted average number of
    common shares outstanding     78,763      78,065      78,662       78,208

  Assuming dilution:
   (Loss) income per common
    share                        $(0.92)     $(2.16)       $1.69      $(5.96)
   Weighted average number of
    common shares outstanding     78,763      78,065      79,873       78,208

  (1) Includes expenses related to canceled stock options of $12.3 million
   for the nine months ended July 31, 2009.
  (2) Beginning in the third quarter of fiscal 2008, our assets that qualify
   for interest capitalization (inventory under development) no longer
   exceeded our debt and therefore the portion of interest not covered by
   qualifying assets must be directly expensed.


  HOVNANIAN ENTERPRISES, INC.
  (DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
  (UNAUDITED)

                                Communities Under Development

                                   Three Months - 7/31/2010
                              ---------------------------------
                                       Net Contracts(1)
                                     Three Months Ended

                                           July 31,
                              ---------------------------------

                                                           %
                                  2010         2009      Change
                              ------------  ----------  -------
  Northeast
                     Home              105         202  (48.0)%
                     Dollars      $ 43,314    $ 84,093  (48.5)%
                     Avg.
                     Price       $ 412,514   $ 416,302   (0.9)%
  Mid-Atlantic
                     Home              137         237  (42.2)%
                     Dollars      $ 50,845    $ 85,352  (40.4)%
                     Avg.
                     Price       $ 371,131   $ 360,135     3.1%
  Midwest
                     Home               90         128  (29.7)%
                     Dollars      $ 16,526    $ 25,411  (35.0)%
                     Avg.
                     Price       $ 183,622   $ 198,523   (7.5)%
  Southeast
                     Home               64         117  (45.3)%
                     Dollars      $ 15,264    $ 27,660  (44.8)%
                     Avg.
                     Price       $ 238,500   $ 236,410     0.9%
  Southwest
                     Home              369         519  (28.9)%
                     Dollars      $ 88,360   $ 109,027  (19.0)%
                     Avg.
                     Price       $ 239,458   $ 210,071    14.0%
  West
                     Home              137         239  (42.7)%
                     Dollars      $ 33,313    $ 55,053  (39.5)%
                     Avg.
                     Price       $ 243,161   $ 230,347     5.6%
  Consolidated
   Total
                     Home              902       1,442  (37.4)%
                     Dollars     $ 247,622   $ 386,596  (35.9)%
                     Avg.
                     Price       $ 274,525   $ 268,097     2.4%
  Unconsolidated
  Joint Ventures
                     Home               71          60    18.3%
                     Dollars      $ 35,763    $ 26,672    34.1%
                     Avg.
                     Price       $ 503,704   $ 444,533    13.3%
  Total
                     Home              973       1,502  (35.2)%
                     Dollars     $ 283,385   $ 413,268  (31.4)%
                     Avg.
                     Price       $ 291,250   $ 275,145     5.9%


                                -------------------------------
                                           Deliveries
                                       Three Months Ended

                                           July 31,
                                -------------------------------

                                                           %
                                   2010        2009      Change
                                ----------  ----------  -------
  Northeast
                  Home                 221         201    10.0%
                  Dollars         $ 91,740    $ 84,761     8.2%
                  Avg. Price     $ 415,113   $ 421,697   (1.6)%
  Mid-Atlantic
                  Home                 194         200   (3.0)%
                  Dollars         $ 72,767    $ 75,631   (3.8)%
                  Avg. Price     $ 375,088   $ 378,155   (0.8)%
  Midwest
                  Home                 110         128  (14.1)%
                  Dollars         $ 22,650    $ 29,925  (24.3)%
                  Avg. Price     $ 205,909   $ 233,789  (11.9)%
  Southeast
                  Home                 121          95    27.4%
                  Dollars         $ 28,522    $ 23,152    23.2%
                  Avg. Price     $ 235,719   $ 243,705   (3.3)%
  Southwest
                  Home                 472         500   (5.6)%
                  Dollars        $ 103,065   $ 105,518   (2.3)%
                  Avg. Price     $ 218,358   $ 211,036     3.5%
  West
                  Home                 198         198     0.0%
                  Dollars         $ 49,333    $ 48,154     2.4%
                  Avg. Price     $ 249,157   $ 243,200     2.4%
  Consolidated
   Total
                  Home               1,316       1,322   (0.5)%
                  Dollars        $ 368,077   $ 367,141     0.3%
                  Avg. Price     $ 279,694   $ 277,716     0.7%
  Unconsolidated
  Joint Ventures
                  Home                  80          69    15.9%
                  Dollars         $ 34,609    $ 25,460    35.9%
                  Avg. Price     $ 432,613   $ 368,986    17.2%
  Total
                  Home               1,396       1,391     0.4%
                  Dollars        $ 402,686   $ 392,601     2.6%
                  Avg. Price     $ 288,457   $ 282,243     2.2%


                                   -------------------------------
                                          Contract Backlog

                                              July 31,
                                   -------------------------------

                                                              %
                                      2010        2009      Change
                                   ----------  ----------  -------
  Northeast
                     Home                 300         479  (37.4)%
                     Dollars        $ 128,424   $ 205,966  (37.6)%
                     Avg. Price     $ 428,080   $ 429,992   (0.4)%
  Mid-Atlantic
                     Home                 299         418  (28.5)%
                     Dollars        $ 115,716   $ 165,218  (30.0)%
                     Avg. Price     $ 387,010   $ 395,258   (2.1)%
  Midwest
                     Home                 286         324  (11.7)%
                     Dollars         $ 48,680    $ 62,645  (22.3)%
                     Avg. Price     $ 170,210   $ 193,349  (12.0)%
  Southeast
                     Home                  75         131  (42.7)%
                     Dollars         $ 18,554    $ 34,600  (46.4)%
                     Avg. Price     $ 247,387   $ 264,122   (6.3)%
  Southwest
                     Home                 290         376  (22.9)%
                     Dollars         $ 76,721    $ 81,238   (5.6)%
                     Avg. Price     $ 264,555   $ 216,059    22.4%
  West
                     Home                 125         250  (50.0)%
                     Dollars         $ 31,374    $ 64,557  (51.4)%
                     Avg. Price     $ 250,992   $ 258,228   (2.8)%
  Consolidated
   Total
                     Home               1,375       1,978  (30.5)%
                     Dollars        $ 419,469   $ 614,224  (31.7)%
                     Avg. Price     $ 305,069   $ 310,527   (1.8)%
  Unconsolidated
  Joint Ventures
                     Home                 167         212  (21.2)%
                     Dollars         $ 80,968   $ 146,747  (44.8)%
                     Avg. Price     $ 484,838   $ 692,203  (30.0)%
  Total
                     Home               1,542       2,190  (29.6)%
                     Dollars        $ 500,437   $ 760,971  (34.2)%
                     Avg. Price     $ 324,538   $ 347,475   (6.6)%


  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)
  (UNAUDITED)

                                      Communities Under Development

                                         Nine Months - 7/31/2010
                                   -----------------------------------
                                            Net Contracts(1)
                                            Nine Months Ended

                                                July 31,
                                   -----------------------------------

                                                                  %
                                       2010          2009       Change
                                   ------------  ------------  -------
  Northeast
                     Home                   381           568  (32.9)%
                     Dollars          $ 150,901     $ 254,091  (40.6)%
                     Avg. Price       $ 396,066     $ 447,343  (11.5)%
  Mid-Atlantic
                     Home                   465           615  (24.4)%
                     Dollars          $ 171,498     $ 214,819  (20.2)%
                     Avg. Price       $ 368,813     $ 349,299     5.6%
  Midwest
                     Home                   324           388  (16.5)%
                     Dollars           $ 60,235      $ 77,745  (22.5)%
                     Avg. Price       $ 185,914     $ 200,374   (7.2)%
  Southeast
                     Home                   248           361  (31.3)%
                     Dollars           $ 57,835      $ 78,796  (26.6)%
                     Avg. Price       $ 233,202     $ 218,271     6.8%
  Southwest
                     Home                 1,255         1,346   (6.8)%
                     Dollars          $ 282,183     $ 279,495     1.0%
                     Avg. Price       $ 224,847     $ 207,649     8.3%
  West
                     Home                   455           711  (36.0)%
                     Dollars          $ 113,210     $ 154,777  (26.9)%
                     Avg. Price       $ 248,815     $ 217,689    14.3%
  Consolidated
   Total
                     Home                 3,128         3,989  (21.6)%
                     Dollars          $ 835,862   $ 1,059,723  (21.1)%
                     Avg. Price       $ 267,219     $ 265,661     0.6%
  Unconsolidated
  Joint Ventures
                     Home                   205           164    25.0%
                     Dollars           $ 92,489      $ 65,437    41.3%
                     Avg. Price       $ 451,166     $ 399,006    13.1%
  Total
                     Home                 3,333         4,153  (19.7)%
                     Dollars          $ 928,351   $ 1,125,160  (17.5)%
                     Avg. Price       $ 278,533     $ 270,927     2.8%


                                -----------------------------------
                                             Deliveries
                                         Nine Months Ended

                                             July 31,
                                -----------------------------------

                                                               %
                                    2010          2009       Change
                                ------------  ------------  -------
  Northeast
                  Home                   538           586   (8.2)%
                  Dollars          $ 217,409     $ 254,749  (14.7)%
                  Avg. Price       $ 404,106     $ 434,725   (7.0)%
  Mid-Atlantic
                  Home                   552           582   (5.2)%
                  Dollars          $ 206,477     $ 215,513   (4.2)%
                  Avg. Price       $ 374,053     $ 370,297     1.0%
  Midwest
                  Home                   291           355  (18.0)%
                  Dollars           $ 62,083      $ 80,685  (23.1)%
                  Avg. Price       $ 213,344     $ 227,282   (6.1)%
  Southeast
                  Home                   308           393  (21.6)%
                  Dollars           $ 75,240      $ 90,001  (16.4)%
                  Avg. Price       $ 244,286     $ 229,010     6.7%
  Southwest
                  Home                 1,316         1,390   (5.3)%
                  Dollars          $ 288,617     $ 305,637   (5.6)%
                  Avg. Price       $ 219,314     $ 219,883   (0.3)%
  West
                  Home                   520           612  (15.0)%
                  Dollars          $ 138,097     $ 161,306  (14.4)%
                  Avg. Price       $ 265,571     $ 263,572     0.8%
  Consolidated
   Total
                  Home                 3,525         3,918  (10.0)%
                  Dollars          $ 987,923   $ 1,107,891  (10.8)%
                  Avg. Price       $ 280,262     $ 282,769   (0.9)%
  Unconsolidated
  Joint Ventures
                  Home                   197           215   (8.4)%
                  Dollars           $ 88,615      $ 72,494    22.2%
                  Avg. Price       $ 449,822     $ 337,181    33.4%
  Total
                  Home                 3,722         4,133   (9.9)%
                  Dollars        $ 1,076,538   $ 1,180,385   (8.8)%
                  Avg. Price       $ 289,236     $ 285,600     1.3%


                                   -------------------------------
                                          Contract Backlog

                                              July 31,
                                   -------------------------------

                                                              %
                                      2010        2009      Change
                                   ----------  ----------  -------
  Northeast
                     Home                 300         479  (37.4)%
                     Dollars        $ 128,424   $ 205,966  (37.6)%
                     Avg. Price     $ 428,080   $ 429,992   (0.4)%
  Mid-Atlantic
                     Home                 299         418  (28.5)%
                     Dollars        $ 115,716   $ 165,218  (30.0)%
                     Avg. Price     $ 387,010   $ 395,258   (2.1)%
  Midwest
                     Home                 286         324  (11.7)%
                     Dollars         $ 48,680    $ 62,645  (22.3)%
                     Avg. Price     $ 170,210   $ 193,349  (12.0)%
  Southeast
                     Home                  75         131  (42.7)%
                     Dollars         $ 18,554    $ 34,600  (46.4)%
                     Avg. Price     $ 247,387   $ 264,122   (6.3)%
  Southwest
                     Home                 290         376  (22.9)%
                     Dollars         $ 76,721    $ 81,238   (5.6)%
                     Avg. Price     $ 264,555   $ 216,059    22.4%
  West
                     Home                 125         250  (50.0)%
                     Dollars         $ 31,374    $ 64,557  (51.4)%
                     Avg. Price     $ 250,992   $ 258,228   (2.8)%
  Consolidated
   Total
                     Home               1,375       1,978  (30.5)%
                     Dollars        $ 419,469   $ 614,224  (31.7)%
                     Avg. Price     $ 305,069   $ 310,527   (1.8)%
  Unconsolidated
  Joint Ventures
                     Home                 167         212  (21.2)%
                     Dollars         $ 80,968   $ 146,747  (44.8)%
                     Avg. Price     $ 484,838   $ 692,203  (30.0)%
  Total
                     Home               1,542       2,190  (29.6)%
                     Dollars        $ 500,437   $ 760,971  (34.2)%
                     Avg. Price     $ 324,538   $ 347,475   (6.6)%


  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.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Hovnanian Enterprises, Inc.

CONTACT:  Hovnanian Enterprises, Inc.
J. Larry Sorsby, Executive Vice President & CFO
Jeffrey T. O'Keefe, Director of Investor Relations
732-747-7800