Hovnanian Enterprises Inc. (HOV, Financial) filed Annual Report for the period ended 2009-10-31.
HOVNANIAN ENT. primarily designs, constructs and markets multi-family attached condominium apartments and townhouses and single family detached homes in planned residential developments in its Northeast Region (comprised primarily of ersey and eastern Pennsylvania), in southeastern Florida, in North Carolina, in Metro Washington, D. C. (northern Virginia), and in southwestern California. The Company recently began housing operations in Poland. The Company markets its homes to first time buyers and to first and second time move-up buyers and concentrates on the moderately priced segment of th Editor Correction: The business description was out-of-date Hovnanian Enterprises Inc. has a market cap of $316.6 million; its shares were traded at around $4.1 with and P/S ratio of 0.2. Hovnanian Enterprises Inc. had an annual average earning growth of 18.8% over the past 5 years.
Current base prices for our homes in contract backlog at October 31, 2009, range from $36,000 (low income housing) to $1,800,000 in the Northeast, from $155,000 to $1,262,000 in the Mid-Atlantic, from $80,000 to $499,000 in the Midwest, from $95,000 to $600,000 in the Southeast, from $81,000 to $1,034,000 in the Southwest, and from $102,000 to $706,000 in the West. Closings generally occur and are typically reflected in revenues within 18 months of when sales contracts are signed.
The value of our net sales contracts, excluding unconsolidated joint ventures, decreased 23.8% to $1.4 billion for the year ended October 31, 2009, from $1.9 billion for the year ended October 31, 2008. This decrease was the result of a net 20.1% decrease in the number of homes contracted to 5,227 in 2009 from 6,546 in 2008, as well as increased incentives or base price reductions as the homebuilding market weakened further in 2009. The decline in the number of homes contracted is a direct result of the 35.3% decrease in the average number of open-for-sale communities. We contracted an average of 23.3 homes per community in 2009 compared to an average of 17.7 homes per community in 2008.
At October 31, 2009 and 2008, including unconsolidated joint ventures, we had a backlog of signed contracts for 1,931 homes and 2,170 homes, respectively, with sales values aggregating $0.6 billion and $0.8 billion, respectively. The majority of our backlog at October 31, 2009 is expected to be completed and closed within the next 12 months. At November 30, 2009 and 2008, our backlog of signed contracts, including unconsolidated joint ventures, was 1,755 homes and 2,097 homes, respectively, with sales values aggregating $0.6 billion and $0.8 billion, respectively.
Read the The complete ReportHOV is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES.
Highlight of Business Operations:
We are currently, excluding unconsolidated joint ventures, offering homes for sale in 179 communities in 39 markets in 18 states throughout the United States. We market and build homes for first-time buyers, first-time and second-time move-up buyers, luxury buyers, active adult buyers, and empty nesters. We offer a variety of home styles at base prices ranging from $36,000 (low income housing) to $1,800,000 with an average sales price, including options, of $283,900 nationwide in fiscal 2009.Current base prices for our homes in contract backlog at October 31, 2009, range from $36,000 (low income housing) to $1,800,000 in the Northeast, from $155,000 to $1,262,000 in the Mid-Atlantic, from $80,000 to $499,000 in the Midwest, from $95,000 to $600,000 in the Southeast, from $81,000 to $1,034,000 in the Southwest, and from $102,000 to $706,000 in the West. Closings generally occur and are typically reflected in revenues within 18 months of when sales contracts are signed.
The value of our net sales contracts, excluding unconsolidated joint ventures, decreased 23.8% to $1.4 billion for the year ended October 31, 2009, from $1.9 billion for the year ended October 31, 2008. This decrease was the result of a net 20.1% decrease in the number of homes contracted to 5,227 in 2009 from 6,546 in 2008, as well as increased incentives or base price reductions as the homebuilding market weakened further in 2009. The decline in the number of homes contracted is a direct result of the 35.3% decrease in the average number of open-for-sale communities. We contracted an average of 23.3 homes per community in 2009 compared to an average of 17.7 homes per community in 2008.
At October 31, 2009 and 2008, including unconsolidated joint ventures, we had a backlog of signed contracts for 1,931 homes and 2,170 homes, respectively, with sales values aggregating $0.6 billion and $0.8 billion, respectively. The majority of our backlog at October 31, 2009 is expected to be completed and closed within the next 12 months. At November 30, 2009 and 2008, our backlog of signed contracts, including unconsolidated joint ventures, was 1,755 homes and 2,097 homes, respectively, with sales values aggregating $0.6 billion and $0.8 billion, respectively.
Read the The complete ReportHOV is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES.
