Tomahawk, WI 9/10/2013 (BasicsMedia) –  Hovnanian Enterprises, Inc. (NYSE:HOV), one of the nation’s leading homebuilder announced its third quarter results along with nine months ended July 31, 2013 on Sept. 9, 2013.

We were pleased that we were able to raise home prices, grow revenues and increase our gross margin during the third quarter of fiscal 2013,” stated Ara K. Hovnanian, Chairman of the Board, President and Chief Executive Officer.

The total revenues as reported for 3Q13 were $478.4 million recording an increase of 23.6% versus 3Q12. The revenues for the nine month ended July 31, 2013 was up by 26.2% amounting to $1.26 billion as compared to $998.3 million for the corresponding nine months in the last year.

The Homebuilding gross margin before land charges and interest expense (which is included in cost of sales) has increased by 2.1% to 20.3% for 3Q13 as compared to 3Q12 and has increased by 1.4% in comparison to 2Q13. The nine months gross margin percentage increased by 1.4% to 18.9% as compared to the corresponding period for the last year.

The company was successful in posting positive pre-tax income for 3Q13 amounting to $11.0 million as compared to 3Q12’s reported loss of $7.4 million. The pre-tax income excluded any charges related to land and gain on extinguishing the debts. The company’s nine months ended pre-tax loss was $8.2 million versus a pre-tax loss of $63.1 million for the corresponding period for 2012.

The net income as reported for 3Q13 was $8.5 million or $0.06 per common share, versus $34.7 million or $0.25 per common share in 3Q12. In 2Q12, the net income comprised income tax benefits and gain on extinguishment of debt amounting to $36.5 and $6.2 million respectively. The net loss as reported for nine months period was $1.5 million, or $0.01 per common share, versus $18.2 million or $0.15 per common share, which included income tax benefit and gain on extinguishment of debt  amounting to $35.3 million $58.0 million  respectively.

The contract backlog as on July 31, 2013 which also included unconsolidated joint ventures, as reported was $1.03 billion for 2893 homes.

Adjusted EBITDA for 3Q13 as reported increased by $14.7 million to $48.6 million versus $33.9 million in 3Q12. For the nine months ended period, Adjusted EBITDA remarkably increased to $102.2 million versus $57.2 million in the corresponding period for the last year.

Our emphasis on raising home prices combined with concerns over rising mortgage rates and weakened consumer confidence dampened our home sales during July and August of 2013. We believe we are in a period where consumers are adjusting to current home prices and mortgage rates and remain confident that the combination of pent-up housing demand and the positive long-term demographic trends for housing will drive increased demand for new homes going forward. We continue to project profitability for the full fiscal 2013 year and strong results for our fourth quarter, excluding any expenses related to early retirement of debt,” concluded Mr. Hovnanian.

The stock of HOV traded in the range of $4.99 to $5.25 and closed at $5.15 advancing by 2.18% in its trading session on Sept. 9, 2013. The company has a market capitalization of $716.61 million with 139.15 million outstanding shares.

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