Hovnanian Enterprises USA Third Quarter 2011 Numbers

Quarter Three

Fiscal Year

Profit/(Loss)

($98.3 M) +26%

($286 M) -1,009%

Home Deliveries

1,245 -3.3%

4,216  -15.8%

New Orders

1,175 +3.2%

4,488 +0.4%

 

Behind the Numbers:

Hovnanian’s net loss for its 2011 fiscal year was considerably higher than last, but the numbers are deceptive because last year the company got a $291.3 million tax refund. Factoring that exceptional tax benefit out, the company’s yearly loss for 2011 was almost flat with 2010. That is something of an achievement since the company delivered more than 15% fewer homes in 2011. For the company’s last  fiscal quarter, new orders improved. Still, management had hoped its final 2011 quarter’s margins would be better. Higher incentives and lower home prices hampered profitability for the quarter. The company spent some money buying land in 2011, boosting its active community count to 214 from 204 in 2010. Hovnanian’s fiscal year ended Oct. 31.

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