Hovnanian narrows loss in Q4, shows gains for year
Red Bank, N.J.-based home builder Hovnanian reported a fourth-quarter net loss of $132.1 million, compared with a loss of $250.7 million for the same period last year.
Revenues for the quarter ended Oct. 31 were $353 million, down 19.2% from $437.3 million.
During the quarter, the company delivered 1,204 homes, compared with 1,444 homes delivered during the prior year's fourth quarter. Net contracts for the quarter decreased 13% to 1,078 homes compared with last year.
For the year, the company reported net income of $2.5 million compared with a loss of $716.7 million for 2009.
Revenues for the year were $1.37 billion, down 14% from $1.59 billion reported for 2009.
Deliveries for the year declined 12% to 4,729 compared with 5,362 home deliveries in 2009. Net contracts for the year decreased 20% to 4,206 compared with 5,227 net contracts in the prior year.
"In spite of strong long-term demographics, the current housing market remains quite challenging. The combination of a lackluster job market and high foreclosure activity is clearly having a dampening effect on the housing market. The only silver lining is that we continue to find land acquisition opportunities, which we believe will yield appropriate returns at today's home prices and sales paces," commented Ara K. Hovnanian, chairman, president and CEO. "Even without a general housing recovery, we are optimistic that as the percentage of deliveries from newly identified communities increases, our overall performance should continue to improve."