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Toll Brothers Loss, Hovnanian Revenue Drop 25% |
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Author: 123jump.com Staff
123jump.com
Last Update: 10:44 AM EDT June 04 2008
The home builder Hovnanian Enterprises, Inc. revenue in the second quarter decreased 25% to $776.4 million compared to $1.1 billion in the same quarter a year ago. Net loss increased to $340.71 million or $5.29 per diluted share compared with loss of $28.06 million or $0.49 cent per share a year ago. Toll Brothers revenue in the quarter declined 30% to $819 million and reportd a net loss of $93.7 millon or 59 cents per share compared to income of $36.7 million or 22 cents per share. |
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10:30AM New York – Home builders Hovnanian and Toll Brothers fell on rising cancellations and falling sales.
Hovnanian loss widens on 21% decline in home deliveries
The home builder Hovnanian Enterprises, Inc. revenue in the second quarter decreased 25% to $776.4 million compared to $1.1 billion in the same quarter a year ago.
Net loss in the quarter increased to $340.71 million or $5.29 per diluted share compared with loss of $28.06 million or $0.49 cent per share for the same quarter of 2007. Loss from unconsolidated joint ventures increased to $3.4 million from $2.16 million. Cost and expenses decreased to $1.12 billion from $1.15 billion.
Excluding unconsolidated joint ventures, the company delivered 2,494 homes in the second quarter, a decrease of 21% from 3,150 home deliveries in the fiscal 2007. Net contracts excluding unconsolidated joint ventures declined 29% to 2,226 homes compared with last year''s second quarter.
The Company''s contract cancellation rate, excluding unconsolidated joint ventures, for the second quarter of fiscal 2008 was 29%, compared with the rate of 38% reported for the first quarter of fiscal 2008 and 32% in the second quarter of fiscal 2007.
During the quarter, pre-tax land-related charges incurred a total of $251.0 million of including land impairments of $226.4 million and write-offs of predevelopment costs and land deposits of $19.5 million, as well as $5.1 million representing its equity portion of write-offs and impairment charges in unconsolidated joint ventures.
Contract backlog excluding unconsolidated joint ventures was 3,577 homes with a sales decrease of 54% to $1.2 billion. Excluding backlog from the Company''s Fort Myers-Cape Coral operations in both periods, backlog decreased 41%.
2008 cash flow from operations to exceed $800 million
The Company continues to project positive cash flow for fiscal 2008 and homebuilding cash balance at October 31, 2008 is projected to exceed $800 million, including the cumulative cash flow from the first two quarters, which was roughly breakeven.
Hovnanian Enterprises, Inc., (HOV: chart), in the last one year traded as high as $6.93 in Nov 2007 and as low as $4.80 in Jan of 2008.
Toll Brothers swings to a loss on higher cancellations
Toll Brothers, Inc., the largest luxury-home builder, today reported revenue for second quarter ended April 2008 declined 30% to $818.8 million compared to $1.17 billion for the same quarter of 2007.
Net loss in the quarter was $93.7 million or 59 cent per diluted share compared with net income of $36.7 million or 22 cent per diluted share for the same period of last year.
Backlog at the end of the quarter declined 50% to $2.08 billion compared to backlog of $4.15 billion for same quarter of 2007. Unconsolidated entities in which the company had an interest had a backlog of $85.1 million. Gross contracts declined 49% and 39% to $730.5 million and 1,237 homes respectively compared to contracts in the second-quarter a year ago of $1.44 billion and 2,031 homes.
In second quarter, cancellations were 308 totaling to $234.1 million compared to 384 cancellations totaling $274.7 million a year ago. Contracts (after cancellations) totaled 929 homes for $496.5 million a decline of 44% in units and 58% in value compared to 1,647 net contracts for $1.17 billion in 2007.
The average price per unit of gross contracts quarter was $590,000 compared to $711,000 a year ago. The average price per unit for the contracts cancelled was $760,000.
This compared to $580,000 in the first quarter of 2008 and $557,000 in the fourth quarter of 2007 and $710,000 in the second quarter of 2007.
Of the $195.9 million of the write-downs was attributable to operating communities and owned land, $7.2 million was attributable to optioned land and $85.0 million was attributable to joint ventures. |
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