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.