Hovnanian Enterprises Reports Fiscal 2007 First Quarter Results and Updates 2007 Projections
Thursday March 8, 6:07 pm ET
RED BANK, N.J., March 8 /PRNewswire-FirstCall/ --
Highlights for the Quarter Ended January 31, 2007
* Prior to the effect of charges related to the Company's Fort Myers-Cape
Coral operations, pretax earnings for the first quarter were $26.7
million, equivalent to $0.20 of net earnings per fully diluted common
share, exceeding earlier guidance of $0.05 to $0.10 per fully diluted
common share.
* During the first quarter, the Company incurred $93 million of pretax
charges related to the Company's Fort Myers-Cape Coral operations, due
to a continued decline in sales pace and general market conditions, as
well as increasing cancellation rates, during the quarter.
* After these charges, the Company reported a net loss of $57.3 million
for the first quarter of fiscal 2007, or $0.91 per fully diluted common
share, compared with earnings of $81.4 million, or $1.25 per fully
diluted common share, in last year's first quarter.
* For the full fiscal year, prior to the effect of the charges related to
the Fort Myers-Cape Coral operations, the Company now expects earnings
between $1.10 and $1.50 per fully diluted common share on 16,000 to
17,200 home deliveries, including 1,000 to 1,400 deliveries from
unconsolidated joint ventures. After these charges, the company expects
earnings in the range of $0.00 to $0.40 per fully diluted common share.
* Total revenues decreased 8.8% to $1.2 billion in the first quarter of
fiscal 2007. Excluding unconsolidated joint ventures, the Company
delivered 3,266 homes with an aggregate sales value of $1.1 billion in
the first quarter, down 15.1% compared to deliveries of 3,845 homes
with an aggregate sales value of $1.2 billion in the first quarter of
fiscal 2006. During the first quarter of fiscal 2007, the Company
delivered 289 homes in unconsolidated joint ventures, compared with 585
homes in the first quarter of fiscal 2006.
* The number of net contracts for the first quarter of fiscal 2007,
excluding unconsolidated joint ventures, declined 23.3% to 2,570
contracts. The dollar value of net contracts for the first quarter of
fiscal 2007, excluding unconsolidated joint ventures, decreased 21.6% to
$0.9 billion, compared to $1.2 billion in last year's first quarter.
Excluding the Fort Myers-Cape Coral operations, consolidated net
contracts in the first quarter for the Company were down 2.3% when
compared to last year's first quarter.
* Contract backlog as of January 31, 2007, excluding unconsolidated joint
ventures, was 7,800 homes with a sales value of $2.7 billion, compared
to a contract backlog of 12,096 homes with a $4.0 billion sales value at
the end of the first quarter of fiscal 2006.
* The Company's ratio of net recourse debt to capital at the end of the
first quarter was 54.8%.
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