Mortgage Amortization Table | Hovnanian Enterprises Reports Second Quarter Fiscal 2011 Results

RESULTS FOR THE THREE AND SIX MONTH PERIODS ENDED APRIL 30, 2011:

-- Total revenues were $255.1 million is to second entertain finished April 30, 2011 compared with $318.6 million in final year's second quarter. During the initial 6 months of mercantile 2011, complete revenues were $507.7 million compared with $638.2 million in the same time of the previous year. -- Homebuilding sum border percentage, before fascination responsibility enclosed in cost of sales, was 14.8% is to 3 months finished April 30, 2011, compared to 17.3% during the same entertain a year ago. For the 6 month time finished April 30, 2011, homebuilding sum border percentage, before fascination responsibility enclosed in cost of sales, was 15.8% compared with 16.6% in the year progressing period. -- Consolidated pre-tax land-related charges in the mercantile 2011 second entertain were $16.9 million, compared with $1.2 million in the previous year's second quarter. For the initial half of mercantile 2011, combined pre-tax land-related charges were $30.5 million compared with $6.2 million during the initial half of 2010. -- Excluding land-related charges and (loss) earn on extinguishment of debt, the pre-tax loss is to entertain finished April 30, 2011 was $55.1 million compared with $44.0 million in the second entertain of 2010. During the initial 6 months of mercantile 2011, the pre-tax loss, on the contrary land-related charges and (loss) earn on extinguishment of debt, was $106.2 million compared with $96.6 million in final year's initial half. -- For the second entertain of mercantile 2011, the after-tax net loss was $72.7 million, or $0.69 per familiar share, compared with $28.6 million, or $0.36 per familiar share, in the second entertain of the previous year. During the 6 months finished April 30, 2011, the after-tax net loss was $136.8 million, or $1.49 per familiar share, compared with net income of $207.6 million, or $2.60 per entirely widely separated familiar share in the initial half of final year, that as a outcome of taxation legislation changes enclosed a sovereign income taxation benefit of $291.3 million. -- Net contracts during the second entertain of 2011, inclusive unconsolidated joint ventures, decreased 17% to 1,166 homes compared with the same time of the previous year. For the 6 months finished April 30, 2011, net contracts, inclusive unconsolidated joint ventures, were 2,016 homes, a 15% lessen from the same time a year ago. -- Contract backlog, as of April 30, 2011, inclusive unconsolidated joint ventures, was 1,551 homes with a sales worth of $513.3 million, a lessen of 21% and 17%, respectively, compared to April 30, 2010. Compared to the initial entertain of mercantile 2011, stipulate backlog, inclusive unconsolidated joint ventures, increased 15% on a units basement and 18% on a dollar basement in the second entertain of mercantile 2011. -- The stipulate termination rate, on the contrary unconsolidated joint ventures, in the mercantile 2011 second entertain was 20%, compared with 17% in the previous year's second quarter. -- At April 30, 2011, there were 206 active selling communities, inclusive unconsolidated joint ventures, compared with 188 active selling communities at April 30, 2010. -- Deliveries, inclusive unconsolidated joint ventures, were 967 homes is to mercantile 2011 second quarter, compared with 1,197 homes during the second entertain of mercantile 2010. For the initial half of the year finished April 30, 2011, deliveries, inclusive unconsolidated joint ventures, were 1,859 homes compared to 2,326 homes in the initial 6 months of 2010. -- The gratefulness stipend was $840.6 million as of April 30, 2011. The gratefulness stipend is a non-cash haven against the taxation properties for GAAP purposes. For taxation purposes, the taxation deductions related with the taxation properties may be carried deliver for 20 years from the date the deductions were incurred.

CASH AND INVENTORY AS OF APRIL 30, 2011:

-- As of April 30, 2011, homebuilding money was $415.2 million, inclusive limited money compulsory to collateralize letters of credit. -- Cash upsurge in the second entertain of mercantile 2011 was disastrous $88.5 million, after spending roughly $125 million of money to buy roughly 1,440 lots and to rise home opposite the Company. -- As of April 30, 2011, the home position, inclusive unconsolidated joint ventures, was 32,546 lots, consisting of 10,542 lots beneath choice and 22,004 owned lots. -- For the mercantile 2011 second quarter, roughly 1,170 of the lots purchased were inside of 84 newly identified communities (defined as communities tranquil successive to January 31, 2009). -- Approximately 1,650 lots were put beneath choice in 41 newly identified communities during the second entertain of mercantile 2011.

RECENT NET CONTRACT RESULTS:

-- For the month of May 2011, net contracts, inclusive unconsolidated joint ventures, were 501 homes compared with 390 homes final year and 392 homes during April 2011, an enlarge of 28% over both periods. -- Net contracts per residents is to month of May 2011, inclusive unconsolidated joint ventures, increased to 2.4 compared with 2.0 in the previous year and 1.9 in April 2011, an enlarge of 20% and 26%, respectively.

COMMENTS FROM MANAGEMENT:

"On a per residents basis, our net contracts, inclusive unconsolidated joint ventures, hold solid at 1.9 contracts per residents per month via the quarter, but were still good next the towering levels of a year ago that benefited from the sovereign homebuyer taxation credit," commented Ara K. Hovnanian, Chairman of the Board, President and Chief Executive Officer. "While the spring selling season has been disappointing, there were a couple of splendid spots, inclusive a 28% year-over-year enlarge in net contracts in May, an enlarge in our residents tally during the second entertain and a consecutive enlarge in backlog at April 30, 2011."

"Importantly, you took extra stairs via the second entertain to improved location our change piece and right away have usually $70 million of debt that matures by the finish of mercantile 2014. At the same time, you go on to find attractive home opportunities that encounter our investment thresholds. Getting these new communities up and running will enable us to blossom our tip line and improved precedence our general, organizational and fascination expenses, relocating us ever closer down the trail to profitability. Based on our backlog, stream sales paces and prices and new residents openings, you think our loss will be reduction in the next two buliding and that money upsurge will improve. We sojourn assured that you have the liquidity to weather the residue of this downturn, and will go on to location ourselves in credentials is to unavoidable housing recovery," resolved Mr. Hovnanian.

WEBCAST INFORMATION:

Hovnanian Enterprises will webcast its mercantile 2011 second entertain financial results discussion call at 11:00 a.m. E.T. on Wednesday, June 8, 2011. The webcast may be accessed live by the "Investor Relations" division of Hovnanian Enterprises' Website at For those who are not existing to attend to the live webcast, an repository of the announce will be existing beneath the "Audio Archives" division of the Investor Relations page on the Hovnanian Website at The repository will be existing for 12 months.

ABOUT HOVNANIAN ENTERPRISES(R), INC.:

Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, is headquartered in Red Bank, New Jersey. The Company is a of the nation's largest homebuilders with operations in Arizona, California, Delaware, Florida, Georgia, Illinois, Kentucky, Maryland, Minnesota, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia. The Company's homes are marketed and sole beneath the traffic names K. Hovnanian(R) Homes(R), Matzel Mumford, Brighton Homes, Parkwood Builders, Town Country Homes and Oster Homes. As the developer of K. Hovnanian's(R) Four Seasons communities, the Company is moreover a of the nation's largest builders of active adult homes.

Additional data on Hovnanian Enterprises, Inc., inclusive a outline investment form and the Company's 2010 annual report, may be accessed by the "Investor Relations" division of the Hovnanian Enterprises' website at To be updated to Hovnanian's financier e-mail or fax lists, greatfully send an e-mail to IR@khov.com or pointer up at

The Hovnanian Enterprises, Inc. trademark is existing at

NON-GAAP FINANCIAL MEASURES:

Consolidated earnings before fascination expense, income taxes, debasement and amortization ("EBITDA") and before register spoil loss and home choice write-offs and loss (gain) on extinguishment of debt ("Adjusted EBITDA") are not U.S. normally agreed accounting beliefs (GAAP) financial measures. The many directly similar GAAP financial portion is net (loss) income. The settlement of net (loss) income to EBITDA and Adjusted EBITDA is presented in a table trustworthy to this earnings release.

Cash upsurge is a non-GAAP financial measure. The many directly similar GAAP financial portion is Net Cash supposing by (or used in) Operating Activities. The Company uses money upsurge to meant the amount of Net Cash supposing by (or used in) Operating Activities is to period, as reported on the Consolidated Statement of Cash Flows, on the contrary changes in housing loan records receivable at the housing loan company, in addition to (or minus) the amount of Net Cash supposing by (or used in) Investing Activities. For the second entertain of 2011, money upsurge was disastrous $88.5 million, that was derived from $98.4 million from net money used in working actions in addition to the change in housing loan records receivable of $9.7 million in addition to $0.2 million of net money supposing by investing activities.

Loss Before Income Taxes Excluding Land-Related Charges and Loss (Gain) on Extinguishment of Debt is a non-GAAP financial measure. The many directly similar GAAP financial portion is Loss Before Income Taxes. The settlement of Loss Before Income Taxes to Loss Before Income Taxes Excluding Land-Related Charges and Loss (Gain) on Extinguishment of Debt is presented in a table trustworthy to this earnings release.

FORWARD-LOOKING STATEMENTS

All statements in this press let go that are not chronological facts should be deliberate as "forward-looking statements". Such statements engage well known and different risks, uncertainties and other factors that may result in real results, opening or achievements of the Company to be materially different from any future results, opening or achievements voiced or pragmatic by the forward-looking statements. Such risks, uncertainties and other factors include, but are not limited to, (1) changes in broad and local economic and attention and business conditions and impacts of the postulated homebuilding downturn, (2) inauspicious weather and other environmental conditions and innate disasters, (3) changes in marketplace conditions and seasonality of the Company's business, (4) changes in home prices and sales wake up in the markets where the Company builds homes, (5) supervision regulation, inclusive regulations regarding growth of land, the home building, sales and patron financing processes, taxation laws, and the environment, (6) fluctuations in fascination rates and the accessibility of housing loan financing, (7) shortages in, and cost fluctuations of, tender materials and labor, (8) the accessibility and cost of fitting home and improved lots, (9) levels of competition, (10) accessibility of financing to the Company, (11) application shortages and outages or rate fluctuations, (12) levels of high regard and restrictions on the Company's operations and actions imposed by the agreements ruling the Company's excellent indebtedness, (13) the Company's sources of liquidity, (14) changes in credit ratings, (15) accessibility of net working loss carryforwards, (16) operations by joint ventures with third parties, (17) product guilt lawsuit and guaranty claims, (18) successful I.D. and formation of acquisitions, (19) poignant influence of the Company's determining stockholders, (20) geopolitical risks, militant acts and other acts of war, and (21) other factors described in item in the Company's Annual Report on Form 10-K/A is to year finished October 31, 2010 and the Company's quarterly reports on Form 10-Q is to buliding finished January 31, 2011 and April 30, 2011, respectively. Except as instead compulsory by germane bonds laws, you commence no obligation to publicly refurbish or correct any forward-looking statements, either as a outcome of new information, future events, altered environment or any other reason.

(Financial Tables Follow) Hovnanian Enterprises, Inc. April 30, 2011 Statements of Consolidated Operations (Dollars in Thousands, Except Per Share Data) Three Months Ended Six Months Ended April 30, April 30, ------------------------- ------------------------- 2011 2010 2011 2010 ------------ ----------- ------------ ----------- (Unaudited) (Unaudited) Total Revenues $ 255,097 $ 318,585 $ 507,664 $ 638,230 Costs and Expenses (a) 323,903 364,173 640,041 740,987 (Loss) Gain on Extinguishment of Debt (1,644) 17,217 (1,644) 19,791 (Loss) Income from Unconsolidated Joint Ventures (3,232) 391 (4,224) 18 ------------ ----------- ------------ ----------- Loss Before Income Taxes (73,682) (27,980) (138,245) (82,948) Income Tax (Provision) Benefit (1,015) 654 (1,436) (290,503) ------------ ----------- ------------ ----------- Net (Loss) Income $ (72,667) $ (28,634) $ (136,809) $ 207,555 ============ =========== ============ =========== Per Share Data: Basic: (Loss) Income Per Common Share $ (0.69) $ (0.36) $ (1.49) $ 2.64 Weighted Average Number of Common Shares Outstanding (b) 105,894 78,668 92,020 78,610 Assuming Dilution: (Loss) Income Per Common Share $ (0.69) $ (0.36) $ (1.49) $ 2.60 Weighted Average Number of Common Shares Outstanding (b) 105,894 78,668 92,020 79,794 (a) Includes register spoil loss and home choice write-offs. (b) For durations with a net loss, simple shares are used in accommodations with GAAP rules. Hovnanian Enterprises, Inc. April 30, 2011 Reconciliation of Loss Before Income Taxes to Loss Before Income Taxes Excluding Land-Related Charges and Loss (Gain) on Extinguishment of Debt (Dollars in Thousands) Three Months Ended Six Months Ended April 30, April 30, ------------------------- ------------------------- 2011 2010 2011 2010 ------------ ----------- ------------ ----------- (Unaudited) (Unaudited) Loss Before Income Taxes $ (73,682) $ (27,980) $ (138,245) $ (82,948) Inventory Impairment Loss and Land Option Write-Offs 16,925 1,186 30,450 6,152 Loss (Gain) on Extinguishment of Debt 1,644 (17,217) 1,644 (19,791) ------------ ----------- ------------ ----------- Loss Before Income Taxes Excluding Land-Related Charges and Loss (Gain) on Extinguishment of Debt (a) $ (55,113) $ (44,011) $ (106,151) $ (96,587) ============ =========== ============ =========== (a) Loss Before Income Taxes Excluding Land-Related Charges and Loss (Gain) on Extinguishment of Debt is a non-GAAP Financial measure. The many directly similar GAAP financial portion is Loss Before Income Taxes. Hovnanian Enterprises, Inc. April 30, 2011 Gross Margin (Dollars in Thousands) Homebuilding Gross Margin Homebuilding Gross Margin Three Months Ended Six Months Ended April 30, April 30, ------------------------- ------------------------- 2011 2010 2011 2010 ------------ ----------- ------------ ----------- (Unaudited) (Unaudited) Sale of Homes $ 246,974 $ 310,493 $ 482,859 $ 619,846 Cost of Sales, Excluding Interest (a) 210,463 256,913 406,377 516,721 ------------ ----------- ------------ ----------- Homebuilding Gross Margin, Excluding Interest 36,511 53,580 76,482 103,125 Homebuilding Cost of Sales Interest 13,956 18,524 27,449 38,372 ------------ ----------- ------------ ----------- Homebuilding Gross Margin, Including Interest $ 22,555 $ 35,056 $ 49,033 $ 64,753 ============ =========== ============ =========== Gross Margin Percentage, Excluding Interest 14.8% 17.3% 15.8% 16.6% Gross Margin Percentage, Including Interest 9.1% 11.3% 10.2% 10.4% Land Sales Gross Margin Land Sales Gross Margin Three Months Ended Six Months Ended April 30, April 30, ------------------------- ------------------------- 2011 2010 2011 2010 ------------ ----------- ------------ ----------- (Unaudited) (Unaudited) Land Sales -- $ 335 $ 8,043 $ 1,035 Cost of Sales, Excluding Interest (a) -- 13 5,516 21 ------------ ----------- ------------ ----------- Land Sales Gross Margin, Excluding Interest -- 322 2,527 1,014 Land Sales Interest -- 221 2,133 221 ------------ ----------- ------------ ----------- Land Sales Gross Margin, Including Interest -- $ 101 $ 394 $ 793 ============ =========== ============ =========== (a) Does not add cost related with on foot away from home options or register spoil losses that are recorded as Inventory spoil loss and home choice write-offs in the Condensed Consolidated Statements of Operations. Hovnanian Enterprises, Inc. April 30, 2011 Reconciliation of Adjusted EBITDA to Net (Loss) Income (Dollars in Thousands) Three Months Ended Six Months Ended April 30, April 30, ------------------------- ------------------------- 2011 2010 2011 2010 ------------ ----------- ------------ ----------- (Unaudited) (Unaudited) Net (Loss) Income $ (72,667) $ (28,634) $ (136,809) $ 207,555 Income Tax (Provision) Benefit (1,015) 654 (1,436) (290,503) Interest Expense 38,843 42,101 78,454 87,556 ------------ ----------- ------------ ----------- EBIT (a) (34,839) 14,121 (59,791) 4,608 Depreciation 2,246 3,071 4,565 6,457 Amortization of Debt Costs 1,012 815 1,857 1,621 ------------ ----------- ------------ ----------- EBITDA (b) (31,581) 18,007 (53,369) 12,686 Inventory Impairment Loss and Land Option Write-offs 16,925 1,186 30,450 6,152 Loss (Gain) on Extinguishment of Debt 1,644 (17,217) 1,644 (19,791) ------------ ----------- ------------ ----------- Adjusted EBITDA (c) $ (13,012) $ 1,976 $ (21,275) $ (953) ============ =========== ============ =========== Interest Incurred $ 39,895 $ 38,201 $ 77,722 $ 78,343 Adjusted EBITDA to Interest Incurred (0.33) 0.05 (0.27) (0.01) (a) EBIT is a non-GAAP financial measure. The many directly similar GAAP financial portion is net (loss) income. EBIT represents earnings before fascination responsibility and income taxes. (b) EBITDA is a non-GAAP financial measure. The many directly similar GAAP financial portion is net (loss) income. EBITDA represents earnings before fascination expense, income taxes, debasement and amortization. (c) Adjusted EBITDA is a non-GAAP financial measure. The many directly similar GAAP financial portion is net (loss) income. Adjusted EBITDA represents earnings before fascination expense, income taxes, depreciation, amortization, register spoil loss and home choice write-offs, and loss (gain) on extinguishment of debt. Hovnanian Enterprises, Inc. April 30, 2011 Interest Incurred, Expensed and Capitalized (Dollars in Thousands) Three Months Ended Six Months Ended April 30, April 30, ------------------------- ------------------------- 2011 2010 2011 2010 ------------ ----------- ------------ ----------- (Unaudited) (Unaudited) Interest Capitalized at Beginning of Period $ 134,504 $ 159,026 $ 136,288 $ 164,340 Plus Interest Incurred 39,895 38,201 77,722 78,342 Less Interest Expensed 38,843 42,101 78,454 87,556 ------------ ----------- ------------ ----------- Interest Capitalized at End of Period (a) $ 135,556 $ 155,126 $ 135,556 $ 155,126 ============ =========== ============ =========== (a) The Company incurred poignant register impairments in new years, that are gritty formed on complete register inclusive capitalized interest. However, the capitalized fascination amounts are shown sum before allocating any portion of impairments to capitalized interest. HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands Except Share Amounts) April 30, October 31, 2011 2010 ----------- ----------- ASSETS (Unaudited) (1) Homebuilding: Cash and money equivalents $ 348,119 $ 359,124 ----------- ----------- Restricted money 85,346 108,983 ----------- ----------- Inventories: Sold and unsold homes and lots beneath growth 655,918 591,729 ----------- ----------- Land and home options hold for future growth or sale 308,601 348,474 ----------- ----------- Consolidated register not owned: Specific opening options 12,064 21,065 Variable fascination entities -- 32,710 Other options 1,026 7,962 ----------- ----------- Total combined register not owned 13,090 61,737 ----------- ----------- Total inventories 977,609 1,001,940 ----------- ----------- Investments in and advances to unconsolidated joint ventures 66,375 38,000 ----------- ----------- Receivables, deposits, and records 50,504 61,023 ----------- ----------- Property, plant, and apparatus -- net 58,663 62,767 ----------- ----------- Prepaid costs and other properties 87,323 83,928 ----------- ----------- Total homebuilding 1,673,939 1,715,765 ----------- ----------- Financial services: Cash and money equivalents 5,611 8,056 Restricted money 6,621 4,022 Mortgage loans hold for sale 47,372 86,326 Other properties 3,012 3,391 ----------- ----------- Total financial services 62,616 101,795 ----------- ----------- Total properties $ 1,736,555 $ 1,817,560 =========== =========== (1) Derived from the audited change piece as of October 31, 2010. HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands Except Share Amounts) October 31, April 30, 2011 2010 ----------- ----------- LIABILITIES AND EQUITY (Unaudited) (1) Homebuilding: Nonrecourse home mortgages $ 18,934 $ 4,313 Accounts on credit and other liabilities 277,269 319,749 Customers' deposits 15,227 9,520 Nonrecourse mortgages feel safe by working properties 20,210 20,657 Liabilities from register not owned 13,090 53,249 ----------- ----------- Total homebuilding 344,730 407,488 ----------- ----------- Financial services: Accounts on credit and other liabilities 16,865 16,142 Mortgage storage area line of credit 33,528 73,643 ----------- ----------- Total financial services 50,393 89,785 ----------- ----------- Notes payable: Senior feel safe records 785,372 784,592 Senior records 827,460 711,585 Senior subordinated records -- 120,170 TEU comparison subordinated amortizing records 15,615 -- Accrued fascination 22,319 23,968 ----------- ----------- Total records on credit 1,650,766 1,640,315 ----------- ----------- Income taxes on credit 40,483 17,910 ----------- ----------- Total liabilities 2,086,372 2,155,498 ----------- ----------- Equity: Hovnanian Enterprises, Inc. stockholders' equity deficit: Preferred stock, $.01 standard worth - certified 100,000 shares; Issued 5,600 shares with a murder welfare of $140,000 at April 30, 2011 and at October 31, 2010 135,299 135,299 Common stock, Class A, $.01 standard worth -- certified 200,000,000 shares; released 91,430,549 shares at April 30, 2011 and 74,809,683 shares at October 31, 2010 (including 11,694,720 shares at April 30, 2011 and October 31, 2010 hold in Treasury) 914 748 Common stock, Class B, $.01 standard worth (convertible to Class A at time of sale) -- certified 30,000,000 shares; released 15,253,812 shares at April 30, 2011 and 15,256,543 shares at October 31, 2010 (including 691,748 shares at April 30, 2011 and October 31, 2010 hold in Treasury) 153 153 Paid in funds - familiar batch 589,123 463,908 Accumulated shortage (960,228) (823,419) Treasury batch - at cost (115,257) (115,257) ----------- ----------- Total Hovnanian Enterprises, Inc. stockholders' equity shortage (349,996) (338,568) Noncontrolling fascination in combined joint ventures 179 630 ----------- ----------- Total equity shortage (349,817) (337,938) ----------- ----------- Total liabilities and equity $ 1,736,555 $ 1,817,560 =========== =========== (1) Derived from the audited change piece as of October 31, 2010. HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands Except Per Share Data) (Unaudited) Three Months Ended April Six Months Ended April 30, 30, 2011 2010 2011 2010 ----------- ----------- ------------ --------- Revenues: Homebuilding: Sale of homes $ 246,974 $ 310,493 $ 482,859 $ 619,846 Land sales and other revenues 2,819 1,033 12,407 3,719 ----------- ----------- ------------ --------- Total homebuilding 249,793 311,526 495,266 623,565 Financial services 5,304 7,059 12,398 14,665 ----------- ----------- ------------ --------- Total revenues 255,097 318,585 507,664 638,230 ----------- ----------- ------------ --------- Expenses: Homebuilding: Cost of sales, on the contrary fascination 210,463 256,926 411,893 516,742 Cost of sales fascination 13,956 18,745 29,582 38,593 Inventory spoil loss and home choice write-offs 16,925 1,186 30,450 6,152 ----------- ----------- ------------ --------- Total cost of sales 241,344 276,857 471,925 561,487 Selling, broad and organizational 39,837 42,359 80,044 85,431 ----------- ----------- ------------ --------- Total homebuilding costs 281,181 319,216 551,969 646,918 Financial services 5,177 5,631 10,647 11,026 Corporate broad and organizational 11,952 14,203 26,960 30,416 Other fascination 24,887 23,356 48,872 48,963 Other operations 706 1,767 1,593 3,664 ----------- ----------- ------------ --------- Total costs 323,903 364,173 640,041 740,987 ----------- ----------- ------------ --------- (Loss) earn on extinguishment of debt (1,644) 17,217 (1,644) 19,791 ----------- ----------- ------------ --------- (Loss) income from unconsolidated joint ventures (3,232) 391 (4,224) 18 ----------- ----------- ------------ --------- Loss before income taxes (73,682) (27,980) (138,245) (82,948) ----------- ----------- ------------ --------- State and sovereign income taxation (benefit) provision: State (372) 657 293 828 Federal (643) (3) (1,729) (291,331) ----------- ----------- ------------ --------- Total income taxes (1,015) 654 (1,436) (290,503) ----------- ----------- ------------ --------- Net (loss) income $ (72,667) $ (28,634) $ (136,809) $ 207,555 =========== =========== ============ ========= Per share data: Basic: (Loss) income per familiar share $ (0.69) $ (0.36) $ (1.49) $ 2.64 Weighted-average number of familiar shares excellent 105,894 78,668 92,020 78,610 Assuming dilution: (Loss) income per familiar share $ (0.69) $ (0.36) $ (1.49) $ 2.60 Weighted-average number of familiar shares excellent 105,894 78,668 92,020 79,794 HOVNANIAN ENTERPRISES, INC. (DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) (UNAUDITED) Communities Under Development Three Months - 4/30/2011 Net Contracts(1) Deliveries Three Months Ended Three Months Ended Contract Backlog April 30, April 30, April 30, ------------------------------------------------------------------------------------------------- 2011 2010 % Change 2011 2010 % Change 2011 2010 % Change ------------------------------------------------------------------------------------------------- Northeast Home 125 146 (14.4)% 82 149 (45.0)% 249 416 (40.1)% Dollars $ 57,394 $ 52,208 9.9% $ 36,126 $ 56,955 (36.6)% $ 106,387 $ 175,029 (39.2)% Avg. Price $ 459,152 $ 357,589 28.4% $ 440,561 $ 382,248 15.3% $ 427,257 $ 420,745 1.5% Mid-Atlantic Home 162 202 (19.8)% 127 176 (27.8)% 274 356 (23.0)% Dollars $ 55,874 $ 73,704 (24.2)% $ 46,643 $ 67,634 (31.0)% $ 113,349 $ 137,805 (17.7)% Avg. Price $ 344,901 $ 364,871 (5.5)% $ 367,268 $ 384,284 (4.4)% $ 413,682 $ 387,093 6.9% Midwest Home 98 149 (34.2)% 89 70 27.1% 215 306 (29.7)% Dollars $ 20,521 $ 27,289 (24.8)% $ 17,466 $ 16,029 9.0% $ 38,592 $ 53,609 (28.0)% Avg. Price $ 209,398 $ 183,148 14.3% $ 196,247 $ 228,986 (14.3)% $ 179,498 $ 175,193 2.5% Southeast Home 98 112 (12.5)% 73 93 (21.5)% 107 132 (18.9)% Dollars $ 23,345 $ 25,334 (7.9)% $ 16,684 $ 22,041 (24.3)% $ 27,450 $ 31,767 (13.6)% Avg. Price $ 238,214 $ 226,205 5.3% $ 228,548 $ 237,000 (3.6)% $ 256,542 $ 240,659 6.6% Southwest Home 444 530 (16.2)% 403 465 (13.3)% 375 393 (4.6)% Dollars $ 104,010 $ 114,166 (8.9)% $ 97,339 $ 103,428 (5.9)% $ 99,358 $ 89,512 11.0% Avg. Price $ 234,257 $ 215,408 8.8% $ 241,536 $ 222,426 8.6% $ 264,955 $ 227,766 16.3% West Home 119 175 (32.0)% 125 165 (24.2)% 73 186 (60.8)% Dollars $ 32,423 $ 43,857 (26.1)% $ 32,716 $ 44,406 (26.3)% $ 19,946 $ 46,926 (57.5)% Avg. Price $ 272,462 $ 250,611 8.7% $ 261,728 $ 269,127 (2.7)% $ 273,233 $ 252,290 8.3% Consolidated Total Home 1,046 1,314 (20.4)% 899 1,118 (19.6)% 1,293 1,789 (27.7)% Dollars $ 293,567 $ 336,558 (12.8)% $ 246,974 $ 310,493 (20.5)% $ 405,082 $ 534,648 (24.2)% Avg. Price $ 280,657 $ 256,132 9.6% $ 274,721 $ 277,722 (1.1)% $ 313,288 $ 298,853 4.8% Unconsolidated Joint Ventures Home 120 85 41.2% 68 79 (13.9)% 258 176 46.6% Dollars $ 53,520 $ 33,097 61.7% $ 29,291 $ 33,106 (11.5)% $ 108,207 $ 84,208 28.5% Avg. Price $ 446,000 $ 389,376 14.5% $ 430,750 $ 419,063 2.8% $ 419,407 $ 478,455 (12.3)% Total Home 1,166 1,399 (16.7)% 967 1,197 (19.2)% 1,551 1,965 (21.1)% Dollars $ 347,086 $ 369,655 (6.1)% $ 276,265 $ 343,599 (19.6)% $ 513,289 $ 618,856 (17.1)% Avg. Price $ 297,672 $ 264,228 12.7% $ 285,693 $ 287,050 (0.5)% $ 330,941 $ 314,940 5.1% DELIVERIES INCLUDE EXTRAS Notes: (1) Net contracts are tangible as new contracts sealed during the time is to buy of homes, reduction cancellations of previous contracts. --------------------------------------------------------------------------------------------------------------------------- HOVNANIAN ENTERPRISES, INC. (DOLLARS IN THOUSANDS EXCEPT AVG. PRICE) (UNAUDITED) Communities Under Development Six Months - 4/30/2011 Net Contracts(1) Deliveries Six Months Ended Six Months Ended Contract Backlog April 30, April 30, April 30, ------------------------------------------------------------------------------------------------- 2011 2010 % Change 2011 2010 % Change 2011 2010 % Change ------------------------------------------------------------------------------------------------- Northeast Home 217 276 (21.4)% 183 317 (42.3)% 249 416 (40.1)% Dollars $ 94,829 $ 107,587 (11.9)% $ 79,410 $ 125,669 (36.8)% $ 106,387 $ 175,029 (39.2)% Avg. Price $ 437,000 $ 389,808 12.1% $ 433,934 $ 396,432 9.5% $ 427,257 $ 420,745 1.5% Mid-Atlantic Home 289 328 (11.9)% 248 358 (30.7)% 274 356 (23.0)% Dollars $ 107,888 $ 120,653 (10.6)% $ 92,906 $ 133,710 (30.5)% $ 113,349 $ 137,805 (17.7)% Avg. Price $ 373,315 $ 367,845 1.5% $ 374,621 $ 373,492 0.3% $ 413,682 $ 387,093 6.9% Midwest Home 163 234 (30.3)% 170 181 (6.1)% 215 306 (29.7)% Dollars $ 32,852 $ 43,710 (24.8)% $ 31,500 $ 39,433 (20.1)% $ 38,592 $ 53,609 (28.0)% Avg. Price $ 201,546 $ 186,795 7.9% $ 185,294 $ 217,862 (14.9)% $ 179,498 $ 175,193 2.5% Southeast Home 166 184 (9.8)% 141 187 (24.6)% 107 132 (18.9)% Dollars $ 38,985 $ 42,570 (8.4)% $ 32,188 $ 46,718 (31.1)% $ 27,450 $ 31,767 (13.6)%

A service of YellowBrix, Inc.