Hovnanian reports strong Q2
Red Bank, N.J.-based Hovnanian Enterprises posted second-quarter net income of $1.8 million, compared with an after-tax net loss of $72.7 million the second quarter of 2011. Total revenues for the second quarter ended April 30 were $341.7 million, up 34% from $255.1 million in the second quarter of the previous year.
For the six months ended April 30, the after-tax net loss was $16.5 million, compared with an after-tax net loss of $136.8 million during the same period a year ago. Total revenues for the six-month period totaled $611.3 million, up 20% from $507.7 million during the same period of the prior year.
"We are encouraged by the positive operating trends we reported for the second quarter. We achieved a 34% year-over-year increase in total revenues, a 260 basis point year-over-year improvement in gross margin and reduced our total SG&A ratio by 640 basis points during the second quarter," said Ara K. Hovnanian, chairman of the board, president and CEO. "We sold more homes per community in April 2012, excluding our September 2007 Deal of the Century sales promotion, than we have in any month since the spring selling season of 2006. The sales improvements we have experienced are fairly wide-based in terms of geography, price points and buyer profiles.”
Net contracts for the quarter, including unconsolidated joint ventures, increased 52% to 1,775 homes, compared with 1,166 homes in the 2011 second quarter.
Deliveries, including unconsolidated joint ventures, totaled 1,207 homes in the second quarter of 2012, up 25% compared with 967 homes in the 2011 second quarter.
Meritage Homes enters Charlotte market
Meritage Homes has opened a new division in Charlotte, N.C., expanding its Southeast Region operations. The division plans to open its first communities in the Charlotte area later this year.
The home builder opened new divisions in Raleigh, N.C., and Tampa, Fla., last year.
Rick Roberson has been named Charlotte division president. He has nearly 10 years of home-building experience and was most recently with the company’s Texas Region.
"Meritage has built a great reputation in the Orlando and Raleigh markets, and our homes have been very well-received by buyers there for the tremendous value and quality of living we offer," said Fred Vandercook, president of Meritage Homes Southeast Region. "We plan to offer similar homes in Charlotte and have every confidence that Rick and his team will be equally successful."
Net sales increase at HD Supply
HD Supply reported net sales for its first fiscal quarter of $1.8 billion, a 14.2% increase compared with the same quarter in 2011. Operating income for the first quarter, which ended April 29, 2012, rose from $35 million in the first quarter of 2011 to $43 million in the first quarter of fiscal 2012.
The company also completed the refinancing of nearly $4 billion in outstanding indebtedness during the quarter. The debt refinancing effectively extended the maturity dates of the senior portion of the company’s debt structure to the years 2017 through 2020. The company now has no significant debt maturities until its 13.5% senior subordinated notes mature in mid-2015.
Net sales improved in all four of its core businesses: Facilities Maintenance, Waterworks, Utilities/Electrical, and White Cap. The company sold its Industrial Pipes, Valves and Fittings (IPVF) business to Shale-Inland Holdings for proceeds of approximately $469 million, minus $5 million in transaction costs.
“As a result of the debt refinancing and sale of our IPVF business, we have added financial strength and flexibility to invest in future growth initiatives and explore future niche acquisition opportunities that will grow our portfolio and continue to enhance market share,” said CEO Joe DeAngelo.