Hovnanian Enterprises, Inc., Red Bank, N.J., this afternoon (May 4) issued guidance for its fiscal second quarter that included an anticipated net loss of $0.45 to $0.50 per share after land impairment charges of between $15 million and $20 million.
The company said it delivered 3,196 homes during its second quarter, a decrease of 30% from the same quarter a year ago, excluding 275 homes in unconsolidated joint ventures. Without the land impairment charges, the net loss would have been $0.30 a share, below the Company's prior guidance of a net loss between $0.05 to $0.20 per common share.
Net contracts for the quarter were 3,116, a decrease of 21% from last year, excluding 202 net contracts for unconsolidated joint ventures. Cancellations stood at 32% of gross contracts, a decrease from a rate of 36% reported in the first quarter of 2007. Excluding Fort Myers-Cape Coral, net contracts in the second quarter decreased 17% and the cancellation rate was 30%.
The guidance was based on preliminary results. The company will report its results on Thursday, May 31 after the market close.