Hovnanian Enterprises Posts Q4 Profit; Results Top Estimates - Quick Facts

(RTTNews) - Hovnanian Enterprises, Inc. (HOV), a national homebuilder, reported that net income for the fourth quarter of fiscal 2013 was $32.8 million, or $0.21 per share, compared to a net loss of $84.4 million, or $0.59 per share in the fourth quarter of the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.

Deliveries, including unconsolidated joint ventures, were 1,816 homes during the fourth quarter of 2013, up 3.8% compared with 1,750 homes in the same period of the prior year.

The dollar value of net contracts, including unconsolidated joint ventures, during the fiscal 2013 fourth quarter decreased 4.5% to $490.5 million compared with $513.4 million in last year's fourth quarter. The number of net contracts decreased 8.9% to 1,315 homes in the fiscal 2013 fourth quarter from 1,443 homes in the prior year's fourth quarter.

Total revenues for the quarter were $591.7 million, an increase of 21.5% compared with $487.0 million in last year's fourth quarter. Ten analysts estimated revenues of $582.89 million for the quarter.

"Although our sales slowed from July through September due to the adverse impacts of higher mortgage rates, the sequester and the government shutdown, we are happy to report that our sales improved back to prior year levels in October and exceeded last year's levels in November. Entering 2014 with a higher backlog, gross margin and community count, gives us optimism that, excluding any expenses related to early retirement of debt, fiscal 2014 should result in greater levels of profitability and continued leveraging of our fixed costs. Further, we continue to believe that household formations, the primary driver of housing demand, will ultimately lead to increased demand for new homes and we continue to believe that our industry is still in the early stages of a housing recovery," said Ara Hovnanian, Chairman of the Board, President and Chief Executive Officer.