HOVNANIAN ENTERPRISES, INC.

News Release

Contact:

J. Larry Sorsby

Jeffrey T. O’Keefe

Executive Vice President & CFO

Vice President, Investor Relations

732-747-7800

732-747-7800

HOVNANIAN ENTERPRISES REPORTS fiscal 2014 Second Quarter Results

RESULTS FOR the ThrEE and Six MONTH PERIODs ENDED April 30, 2014:

●

Total revenues were $449.9 million for the second quarter ended April 30, 2014, an increase of 6.4% compared with $423.0 million in the fiscal 2013 second quarter. For the six months ended April 30, 2014, total revenues increased 4.2% to $814.0 million compared with $781.2 million in the first half of the prior year.

●

Homebuilding gross margin percentage, before interest expense and land charges included in cost of sales, increased 130 basis points to 20.2% in the second quarter of fiscal 2014 compared with 18.9% in the fiscal 2013 second quarter. For the first six months of fiscal 2014, homebuilding gross margin percentage, before interest expense and land charges included in cost of sales, was 19.5% compared with 18.0% in the first six months of the prior year.

●

Pre-tax loss, excluding land-related charges and loss on extinguishment of debt, for the second quarter ended April 30, 2014 was $5.6 million compared with pre-tax income of $0.9 million in last year’s second quarter. During the first six months of fiscal 2014, the pre-tax loss, excluding land-related charges and loss on extinguishment of debt, was $28.8 million compared with a pre-tax loss of $19.2 million in the same period of the prior year.

●

Net loss was $7.9 million, or $0.05 per common share, for the three months ended April 30, 2014, compared with net income of $1.3 million, or $0.01 per common share, which included $2.6 million of federal and state tax benefits, during the same quarter a year ago. During the first six months of fiscal 2014, the net loss was $32.4 million, or $0.22 per common share, compared with a net loss of $10.0 million, or $0.07 per common share, which included $12.1 million of federal and state tax benefits, in last year’s first six months.

●

Deliveries, including unconsolidated joint ventures, were 1,331 homes in the fiscal 2014 second quarter, a 6.5% decrease compared with 1,424 homes in the prior year’s second quarter. For the six months ended April 30, 2014, deliveries, including unconsolidated joint ventures, were 2,469 homes compared with 2,612 homes in the first six months of fiscal 2013, a decrease of 5.5%.

●

The dollar value of consolidated net contracts increased 15.5% to $669.3 million for the second quarter of fiscal 2014 compared with $579.6 million for the same quarter a year ago. The dollar value of net contracts, including unconsolidated joint ventures, for the three months ended April 30, 2014 increased 1.0% to $703.0 million compared with $696.1 million in the second quarter of the prior year.

●

For the second quarter of fiscal 2014, the number of consolidated net contracts increased 6.7% to 1,809 homes compared with 1,695 homes in the second quarter of fiscal 2013. The number of net contracts, including unconsolidated joint ventures, decreased 2.2% to 1,907 homes in the second quarter of fiscal 2014 second quarter from 1,950 homes in the fiscal 2013 second quarter.

●

During the first half of fiscal 2014, the dollar value of consolidated net contracts increased 10.3% to $1,077.3 million compared with $976.5 million in the same period a year ago. The dollar value of net contracts, including unconsolidated joint ventures, for the first six months of fiscal 2014 was $1,158.8 million compared with $1,159.3 million in the first six months of the prior year.

●

In the first six months of fiscal 2014, the number of consolidated net contracts increased 0.4% to 2,901 homes from 2,890 homes in the first half of fiscal 2013. The number of net contracts, including unconsolidated joint ventures, decreased 5.6% to 3,109 homes for the six months ended April 30, 2014 from 3,294 homes in last year’s first six months.

●

As of April 30, 2014, the dollar value of consolidated contract backlog increased 21.0% to $1,046.3 million compared with $865.0 million at April 30, 2013. The dollar value of contract backlog, as of April 30, 2014, including unconsolidated joint ventures, was $1,135.7 million, which was an increase of 10.9%, compared with $1,024.6 million as of April 30, 2013.

●

As of April 30, 2014, the number of homes in consolidated contract backlog increased 13.6% to 2,797 homes compared with 2,462 homes as of the end of the second quarter of fiscal 2013. Contract backlog, as of April 30, 2014, including unconsolidated joint ventures, increased of 7.3% to 3,032 homes compared with 2,827 homes as of April 30, 2013.

●

Total interest expense as a percentage of total revenues was 8.0% during both the second quarter of fiscal 2014 and the second quarter of fiscal 2013. For the six months ended April 30, 2014, total interest expense as a percentage of total revenues declined 30 basis points to 8.4% compared with 8.7% during the first six months a year ago.

●

Total SG&A was $62.4 million, or 13.9% of total revenues, during the fiscal 2014 second quarter compared to $51.5 million, or 12.2% of total revenues, in last year’s second quarter. Total SG&A was $122.8 million, or 15.1% of total revenues, in the first six months of fiscal 2014 compared to $100.8 million, or 12.9% of total revenues, in the prior year’s first six months.

●

Adjusted EBITDA decreased to $32.2 million for fiscal 2014 second quarter compared to $37.1 million during the second quarter of fiscal 2013. Adjusted EBITDA decreased to $43.7 million for the six months ended April 30, 2014 compared to $53.6 million in the first six months of fiscal 2013.

●

The contract cancellation rate, including unconsolidated joint ventures, for the three months ended April 30, 2014 was 17%, compared with 16% in the second quarter of the prior year.

●

The valuation allowance was $936.3 million as of April 30, 2014. The valuation allowance is a non-cash reserve against the tax assets for GAAP purposes. For tax purposes, the tax deductions associated with the tax assets may be carried forward for 20 years from the date the deductions were incurred.

LIQUIDITY AND INVENTORY AS OF APRIL 30, 2014:

●

During the second quarter of fiscal 2014, $105.3 million was spent on land and land development. For the six months ended April 30, 2014, the dollar amount spent on land and land development was $287.0 million.

●

Homebuilding cash was $243.3 million as of April 30, 2014, including $5.2 million of restricted cash required to collateralize letters of credit, compared to $263.4 million at April 30, 2013. In addition to homebuilding cash, there was $55.0 million of availability under the revolving credit facility as of April 30, 2014, bringing total liquidity to $298.3 million. Total liquidity increased 13.2% from $263.4 million at April 30, 2013.

●

As of April 30, 2014, the land position, including unconsolidated joint ventures, was 37,787 lots, consisting of 17,714 lots under option and 20,073 owned lots, an increase of 7,744 lots compared with a total of 30,043 lots as of April 30, 2013.

●

During the second quarter of fiscal 2014, approximately 5,600 lots were put under option or acquired in 56 communities.

COMMENTS FROM MANAGEMENT:

Webcast Information:

About Hovnanian Enterprises^®, Inc.:

NON-GAAP FINANCIAL MEASURES:

All statements in this press release that are not historical facts should be considered as “forward-looking statements.” Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Although we believe that our plans, intentions and expectations reflected in, or suggested by, such forward looking statements are reasonable, we can give no assurance that such plans, intentions, or expectations will be achieved. Such risks, uncertainties and other factors include, but are not limited to, (1) changes in general and local economic, industry and business conditions and impacts of the sustained homebuilding downturn, (2) adverse weather and other environmental conditions and natural disasters, (3) changes in market conditions and seasonality of the Company’s business, (4) changes in home prices and sales activity in the markets where the Company builds homes, (5) government regulation, including regulations concerning development of land, the home building, sales and customer financing processes, tax laws, and the environment, (6) fluctuations in interest rates and the availability of mortgage financing, (7) shortages in, and price fluctuations of, raw materials and labor, (8) the availability and cost of suitable land and improved lots, (9) levels of competition, (10) availability of financing to the Company, (11) utility shortages and outages or rate fluctuations, (12) levels of indebtedness and restrictions on the Company’s operations and activities imposed by the agreements governing the Company’s outstanding indebtedness, (13) the Company's sources of liquidity, (14) changes in credit ratings, (15) availability of net operating loss carryforwards, (16) operations through joint ventures with third parties, (17) product liability litigation, warranty claims and claims made by mortgage investors, (18) successful identification and integration of acquisitions, (19) significant influence of the Company’s controlling stockholders, (20) changes in tax laws affecting the after-tax costs of owning a home, (21) geopolitical risks, terrorist acts and other acts of war, and (22) other factors described in detail in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2013 and subsequent filings with the Securities and Exchange Commission. Except as otherwise required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.       

Three Months Ended

Six Months Ended

April 30,

April 30,

2014

2013

2014

2013

(Unaudited)

(Unaudited)

Total Revenues

Costs and Expenses (a)

Loss on Extinguishment of Debt

Income from Unconsolidated Joint Ventures

Loss Before Income Taxes

Income Tax Provision (Benefit)

Net (Loss) Income

Per Share Data:

Basic:

(Loss) Income Per Common Share

Weighted Average Number of

Common Shares Outstanding (b)

Assuming Dilution:

(Loss) Income Per Common Share

Weighted Average Number of

Common Shares Outstanding (b)

(a) Includes inventory impairment loss and land option write-offs.

(b) For periods with a net loss, basic shares are used in accordance with GAAP rules.

Three Months Ended

Six Months Ended

April 30,

April 30,

2014

2013

2014

2013

(Unaudited)

(Unaudited)

Loss Before Income Taxes

Inventory Impairment Loss and Land Option Write-Offs

Loss on Extinguishment of Debt

(Loss) Income Before Income Taxes Excluding Land-Related

Charges and Loss on Extinguishment of Debt (a)

Homebuilding Gross Margin

Homebuilding Gross Margin

Three Months Ended

Six Months Ended

April 30,

April 30,

2014

2013

2014

2013

(Unaudited)

(Unaudited)

Sale of Homes

Cost of Sales, Excluding Interest (a)

Homebuilding Gross Margin, Excluding Interest

Homebuilding Cost of Sales Interest

Homebuilding Gross Margin, Including Interest

Gross Margin Percentage, Excluding Interest

Gross Margin Percentage, Including Interest

Land and Lot Sales
Gross Margin

Land and Lot Sales
Gross Margin

Three Months Ended

Six Months Ended

April 30,

April 30,

2014

2013

2014

2013

(Unaudited)

(Unaudited)

Land and Lot Sales

Cost of Sales, Excluding Interest (a)

Land and Lot Sales Gross Margin, Excluding Interest

Land and Lot Sales Interest

Land and Lot Sales Gross Margin, Including Interest

Hovnanian Enterprises, Inc.

April 30, 2014

Reconciliation of Adjusted EBITDA to Net (Loss) Income

(Dollars in Thousands)

Three Months Ended

Six Months Ended

April 30,

April 30,

2014

2013

2014

2013

(Unaudited)

(Unaudited)

Net (Loss) Income

Income Tax Provision (Benefit)

Interest Expense

EBIT (a)

Depreciation

Amortization of Debt Costs

EBITDA (b)

Inventory Impairment Loss and Land Option Write-offs

Loss on Extinguishment of Debt

Adjusted EBITDA (c)

Interest Incurred

Adjusted EBITDA to Interest Incurred

(a) EBIT is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net (loss) income. EBIT represents earnings before interest expense and income taxes.

(b) EBITDA is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net (loss) income. EBITDA represents earnings before interest expense, income taxes, depreciation and amortization.

(c) Adjusted EBITDA is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net (loss) income. Adjusted EBITDA represents earnings before interest expense, income taxes, depreciation, amortization and inventory impairment loss and land option write-offs and loss on extinguishment of debt.

Hovnanian Enterprises, Inc.

April 30, 2014

Interest Incurred, Expensed and Capitalized

(Dollars in Thousands)

Three Months Ended

Six Months Ended

April 30,

April 30,

2014

2013

2014

2013

(Unaudited)

(Unaudited)

Interest Capitalized at Beginning of Period

Plus Interest Incurred

Less Interest Expensed

Interest Capitalized at End of Period (a)

(a) Capitalized interest amounts are shown gross before allocating any portion of impairments to capitalized interest.

April 30,

2014

October 31,

2013

(Unaudited)

ASSETS

Homebuilding:

Cash

Restricted cash and cash equivalents

Inventories:

Sold and unsold homes and lots under development

Land and land options held for future development or sale

Consolidated inventory not owned:

Specific performance options

Other options

Total consolidated inventory not owned

Total inventories

Investments in and advances to unconsolidated joint ventures

Receivables, deposits, and notes – net

Property, plant, and equipment – net

Prepaid expenses and other assets

Total homebuilding

Financial services:

Cash

Restricted cash and cash equivalents

Mortgage loans held for sale at fair value

Other assets

Total financial services

Total assets

April 30,

2014

October 31,

2013

(Unaudited)

LIABILITIES AND EQUITY

Homebuilding:

Nonrecourse mortgages

Accounts payable and other liabilities

Customers’ deposits

Nonrecourse mortgages secured by operating properties

Liabilities from inventory not owned

Total homebuilding

Financial services:

Accounts payable and other liabilities

Mortgage warehouse lines of credit

Total financial services

Notes payable:

Senior secured notes

Senior notes

Senior amortizing notes

Senior exchangeable notes

TEU senior subordinated amortizing notes

Accrued interest

Total notes payable

Income taxes payable

Total liabilities

Equity:

Hovnanian Enterprises, Inc. stockholders’ equity deficit:

Preferred stock, $0.01 par value - authorized 100,000 shares; issued and outstanding 5,600 shares with a liquidation preference of $140,000 at April 30, 2014 and at October 31, 2013

Common stock, Class A, $0.01 par value – authorized 400,000,000 shares; issued 142,746,950 shares at April 30, 2014 and 136,306,223 shares at October 31, 2013 (including 11,760,763 shares at April 30, 2014 and October 31, 2013 held in Treasury)

Common stock, Class B, $0.01 par value (convertible to Class A at time of sale) – authorized 60,000,000 shares; issued 15,496,689 shares at April 30, 2014 and 15,347,615 shares at October 31, 2013 (including 691,748 shares at April 30, 2014 and October 31, 2013 held in Treasury)

Paid in capital – common stock

Accumulated deficit

)

)

Treasury stock – at cost

)

)

Total Hovnanian Enterprises, Inc. stockholders’ equity deficit

)

)

Noncontrolling interest in consolidated joint ventures

Total equity deficit

)

)

Total liabilities and equity

Three Months Ended April 30,

Six Months Ended April 30,

2014

2013

2014

2013

Revenues:

Homebuilding:

Sale of homes

Land sales and other revenues

Total homebuilding

Financial services

Total revenues

Expenses:

Homebuilding:

Cost of sales, excluding interest

Cost of sales interest

Inventory impairment loss and land option write-offs

Total cost of sales

Selling, general and administrative

Total homebuilding expenses

Financial services

Corporate general and administrative

Other interest

Other operations

)

)

Total expenses

Loss on extinguishment of debt

)

)

Income from unconsolidated joint ventures

Loss before income taxes

)

)

)

)

State and federal income tax provision (benefit):

State

)

)

Federal

)

)

Total income taxes

)

)

Net (loss) income

)

)

)

Per share data:

Basic:

(Loss) income per common share

)

)

)

Weighted-average number of common shares outstanding

Assuming dilution:

(Loss) income per common share

)

)

)

Weighted-average number of common shares outstanding

Communities Under Development

Three Months - April 30, 2014

Net Contracts

Deliveries

Contract

Three Months Ended

Three Months Ended

Backlog

Apr 30,

Apr 30,

Apr 30,

2014

2013

% Change

2014

2013

% Change

2014

2013

% Change

Northeast

(NJ, PA)

Home

156

183

(14.8)%

134

113

18.6%

237

315

(24.8)%

Dollars

$75,485

$86,311

(12.5)%

$65,550

$53,100

23.4%

$113,846

$139,750

(18.5)%

Avg. Price

$483,878

$471,647

2.6%

$489,180

$469,907

4.1%

$480,363

$443,652

8.3%

Mid-Atlantic

(DE, MD, VA, WV)

Home

263

181

45.3%

145

135

7.4%

404

341

18.5%

Dollars

$119,935

$89,896

33.4%

$68,431

$57,706

18.6%

$203,218

$168,438

20.6%

Avg. Price

$456,027

$496,664

(8.2)%

$471,938

$427,450

10.4%

$503,015

$493,954

1.8%

Midwest

(IL, MN, OH)

Home

229

247

(7.3)%

167

159

5.0%

666

530

25.7%

Dollars

$65,242

$60,898

7.1%

$48,624

$39,356

23.5%

$171,987

$125,073

37.5%

Avg. Price

$284,901

$246,549

15.6%

$291,162

$247,522

17.6%

$258,239

$235,987

9.4%

Southeast

(FL, GA, NC, SC)

Home

183

184

(0.5)%

164

135

21.5%

308

295

4.4%

Dollars

$59,467

$51,479

15.5%

$50,792

$37,119

36.8%

$102,421

$81,715

25.3%

Avg. Price

$324,956

$279,777

16.1%

$309,707

$274,952

12.6%

$332,537

$277,001

20.0%

Southwest

(AZ, TX)

Home

839

779

7.7%

551

571

(3.5)%

1,027

825

24.5%

Dollars

$269,985

$235,517

14.6%

$164,212

$160,988

2.0%

$352,139

$273,910

28.6%

Avg. Price

$321,794

$302,332

6.4%

$298,025

$281,941

5.7%

$342,881

$332,011

3.3%

West

(CA)

Home

139

121

14.9%

74

142

(47.9)%

155

156

(0.6)%

Dollars

$79,167

$55,461

42.7%

$40,693

$61,308

(33.6)%

$102,644

$76,082

34.9%

Avg. Price

$569,545

$458,359

24.3%

$549,905

$431,749

27.4%

$662,221

$487,707

35.8%

Consolidated Total

Home

1,809

1,695

6.7%

1,235

1,255

(1.6)%

2,797

2,462

13.6%

Dollars

$669,281

$579,562

15.5%

$438,302

$409,577

7.0%

$1,046,255

$864,968

21.0%

Avg. Price

$369,973

$341,925

8.2%

$354,900

$326,356

8.7%

$374,063

$351,328

6.5%

Unconsolidated Joint Ventures

Home

98

255

(61.6)%

96

169

(43.2)%

235

365

(35.6)%

Dollars

$33,768

$116,572

(71.0)%

$33,411

$74,119

(54.9)%

$89,485

$159,583

(43.9)%

Avg. Price

$344,567

$457,144

(24.6)%

$348,031

$438,576

(20.6)%

$380,787

$437,213

(12.9)%

Grand Total

Home

1,907

1,950

(2.2)%

1,331

1,424

(6.5)%

3,032

2,827

7.3%

Dollars

$703,049

$696,134

1.0%

$471,713

$483,696

(2.5)%

$1,135,740

$1,024,551

10.9%

Avg. Price

$368,668

$356,992

3.3%

$354,405

$339,674

4.3%

$374,584

$362,416

3.4%

DELIVERIES INCLUDE EXTRAS

Notes:

(1) Net contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.

(2) Segment data excludes unconsolidated joint ventures.

Communities Under Development

Six Months - April 30, 2014

Net Contracts

Deliveries

Contract

Six Months Ended

Six Months Ended

Backlog

Apr 30,

Apr 30,

Apr 30,

2014

2013

% Change

2014

2013

% Change

2014

2013

% Change

Northeast

(NJ, PA)

Home

257

288

(10.8)%

240

237

1.3%

237

315

(24.8)%

Dollars

$127,523

$131,667

(3.1)%

$118,683

$107,333

10.6%

$113,846

$139,750

(18.5)%

Avg. Price

$496,200

$457,179

8.5%

$494,512

$452,884

9.2%

$480,363

$443,652

8.3%

Mid-Atlantic

(DE, MD, VA, WV)

Home

403

327

23.2%

270

252

7.1%

404

341

18.5%

Dollars

$190,832

$159,818

19.4%

$128,781

$110,152

16.9%

$203,218

$168,438

20.6%

Avg. Price

$473,530

$488,739

(3.1)%

$476,966

$437,113

9.1%

$503,015

$493,954

1.8%

Midwest

(IL, MN, OH)

Home

397

400

(0.8)%

336

297

13.1%

666

530

25.7%

Dollars

$113,633

$100,885

12.6%

$92,363

$71,528

29.1%

$171,987

$125,073

37.5%

Avg. Price

$286,230

$252,213

13.5%

$274,889

$240,834

14.1%

$258,239

$235,987

9.4%

Southeast

(FL, GA, NC, SC)

Home

295

304

(3.0)%

295

244

20.9%

308

295

4.4%

Dollars

$93,685

$84,743

10.6%

$89,920

$65,723

36.8%

$102,421

$81,715

25.3%

Avg. Price

$317,576

$278,758

13.9%

$304,813

$269,357

13.2%

$332,537

$277,001

20.0%

Southwest

(AZ, TX)

Home

1,342

1,338

0.3%

992

1,019

(2.6)%

1,027

825

24.5%

Dollars

$428,069

$394,786

8.4%

$292,297

$281,717

3.8%

$352,139

$273,910

28.6%

Avg. Price

$318,978

$295,057

8.1%

$294,655

$276,464

6.6%

$342,881

$332,011

3.3%

West

(CA)

Home

207

233

(11.2)%

138

268

(48.5)%

155

156

(0.6)%

Dollars

$123,557

$104,609

18.1%

$71,439

$107,404

(33.5)%

$102,644

$76,082

34.9%

Avg. Price

$596,892

$448,966

32.9%

$517,672

$400,761

29.2%

$662,221

$487,707

35.8%

Consolidated Total

Home

2,901

2,890

0.4%

2,271

2,317

(2.0)%

2,797

2,462

13.6%

Dollars

$1,077,299

$976,508

10.3%

$793,483

$743,857

6.7%

$1,046,255

$864,968

21.0%

Avg. Price

$371,354

$337,892

9.9%

$349,398

$321,043

8.8%

$374,063

$351,328

6.5%

Unconsolidated Joint Ventures

Home

208

404

(48.5)%

198

295

(32.9)%

235

365

(35.6)%

Dollars

$81,536

$182,790

(55.4)%

$77,987

$133,113

(41.4)%

$89,485

$159,583

(43.9)%

Avg. Price

$391,998

$452,451

(13.4)%

$393,875

$451,230

(12.7)%

$380,787

$437,213

(12.9)%

Grand Total

Home

3,109

3,294

(5.6)%

2,469

2,612

(5.5)%

3,032

2,827

7.3%

Dollars

$1,158,835

$1,159,298

(0.0)%

$871,470

$876,970

(0.6)%

$1,135,740

$1,024,551

10.9%

Avg. Price

$372,735

$351,942

5.9%

$352,965

$335,747

5.1%

$374,584

$362,416

3.4%

DELIVERIES INCLUDE EXTRAS

Notes:

(1) Net contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.

Communities Under Development

Three Months - April 30, 2014

Net Contracts

Deliveries

Contract

Three Months Ended

Three Months Ended

Backlog

Apr 30,

Apr 30,

Apr 30,

2014

2013

% Change

2014

2013

% Change

2014

2013

% Change

Northeast

(includes unconsolidated joint ventures)

Home

167

226

(26.1)%

147

134

9.7%

261

364

(28.3)%

(NJ, PA)

Dollars

$75,796

$119,447

(36.5)%

$69,985

$70,314

(0.5)%

$122,405

$178,476

(31.4)%

Avg. Price

$453,868

$528,527

(14.1)%

$476,088

$524,732

(9.3)%

$468,985

$490,318

(4.4)%

Mid-Atlantic

(includes unconsolidated joint ventures)

Home

301

291

3.4%

180

219

(17.8)%

489

481

1.7%

(DE, MD, VA, WV)

Dollars

$136,640

$139,068

(1.7)%

$82,620

$92,928

(11.1)%

$244,103

$231,927

5.3%

Avg. Price

$453,953

$477,896

(5.0)%

$459,000

$424,329

8.2%

$499,188

$482,176

3.5%

Midwest

(includes unconsolidated joint ventures)

Home

247

288

(14.2)%

181

188

(3.7)%

706

617

14.4%

(IL, MN, OH)

Dollars

$70,073

$73,032

(4.1)%

$52,327

$47,566

10.0%

$182,927

$150,065

21.9%

Avg. Price

$283,694

$253,584

11.9%

$289,100

$253,008

14.3%

$259,103

$243,217

6.5%

Southeast

(includes unconsolidated joint ventures)

Home

214

231

(7.4)%

198

159

24.5%

394

372

5.9%

(FL, GA, NC, SC)

Dollars

$71,388

$65,545

8.9%

$61,876

$44,832

38.0%

$131,522

$107,165

22.7%

Avg. Price

$333,589

$283,746

17.6%

$312,506

$281,965

10.8%

$333,812

$288,079

15.9%

Southwest

(includes unconsolidated joint ventures)

Home

839

779

7.7%

551

571

(3.5)%

1,027

825

24.5%

(AZ, TX)

Dollars

$269,985

$235,517

14.6%

$164,212

$160,988

2.0%

$352,139

$273,910

28.6%

Avg. Price

$321,794

$302,332

6.4%

$298,025

$281,941

5.7%

$342,881

$332,011

3.3%

West

(includes unconsolidated joint ventures)

Home

139

135

3.0%

74

153

(51.6)%

155

168

(7.7)%

(CA)

Dollars

$79,167

$63,525

24.6%

$40,693

$67,068

(39.3)%

$102,644

$83,008

23.7%

Avg. Price

$569,545

$470,556

21.0%

$549,905

$438,351

25.4%

$662,221

$494,097

34.0%

Grand Total

Home

1,907

1,950

(2.2)%

1,331

1,424

(6.5)%

3,032

2,827

7.3%

Dollars

$703,049

$696,134

1.0%

$471,713

$483,696

(2.5)%

$1,135,740

$1,024,551

10.9%

Avg. Price

$368,668

$356,992

3.3%

$354,405

$339,674

4.3%

$374,584

$362,416

3.4%

Consolidated Total

Home

1,809

1,695

6.7%

1,235

1,255

(1.6)%

2,797

2,462

13.6%

Dollars

$669,281

$579,562

15.5%

$438,302

$409,577

7.0%

$1,046,255

$864,968

21.0%

Avg. Price

$369,973

$341,925

8.2%

$354,900

$326,356

8.7%

$374,063

$351,328

6.5%

Unconsolidated Joint Ventures

Home

98

255

(61.6)%

96

169

(43.2)%

235

365

(35.6)%

Dollars

$33,768

$116,572

(71.0)%

$33,411

$74,119

(54.9)%

$89,485

$159,583

(43.9)%

Avg. Price

$344,567

$457,144

(24.6)%

$348,031

$438,576

(20.6)%

$380,787

$437,213

(12.9)%

DELIVERIES INCLUDE EXTRAS

Notes:

(1) Net contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.

Communities Under Development

Six Months - April 30, 2014

Net Contracts

Deliveries

Contract

Six Months Ended

Six Months Ended

Backlog

Apr 30,

Apr 30,

Apr 30,

2014

2013

% Change

2014

2013

% Change

2014

2013

% Change

Northeast

(includes unconsolidated joint ventures)

Home

295

349

(15.5)%

267

279

(4.3)%

261

364

(28.3)%

(NJ, PA)

Dollars

$143,165

$180,198

(20.6)%

$132,008

$142,674

(7.5)%

$122,405

$178,476

(31.4)%

Avg. Price

$485,305

$516,327

(6.0)%

$494,411

$511,376

(3.3)%

$468,985

$490,318

(4.4)%

Mid-Atlantic

(includes unconsolidated joint ventures)

Home

494

505

(2.2)%

346

390

(11.3)%

489

481

1.7%

(DE, MD, VA, WV)

Dollars

$230,084

$238,099

(3.4)%

$161,372

$169,370

(4.7)%

$244,103

$231,927

5.3%

Avg. Price

$465,756

$471,483

(1.2)%

$466,393

$434,283

7.4%

$499,188

$482,176

3.5%

Midwest

(includes unconsolidated joint ventures)

Home

422

472

(10.6)%

370

354

4.5%

706

617

14.4%

(IL, MN, OH)

Dollars

$120,504

$121,852

(1.1)%

$101,510

$87,706

15.7%

$182,927

$150,065

21.9%

Avg. Price

$285,555

$258,161

10.6%

$274,352

$247,756

10.7%

$259,103

$243,217

6.5%

Southeast

(includes unconsolidated joint ventures)

Home

348

373

(6.7)%

347

284

22.2%

394

372

5.9%

(FL, GA, NC, SC)

Dollars

$112,764

$106,544

5.8%

$106,975

$78,719

35.9%

$131,522

$107,165

22.7%

Avg. Price

$324,033

$285,641

13.4%

$308,286

$277,179

11.2%

$333,812

$288,079

15.9%

Southwest

(includes unconsolidated joint ventures)

Home

1,342

1,338

0.3%

992

1,019

(2.6)%

1,027

825

24.5%

(AZ, TX)

Dollars

$428,069

$394,786

8.4%

$292,297

$281,717

3.8%

$352,139

$273,910

28.6%

Avg. Price

$318,978

$295,057

8.1%

$294,655

$276,464

6.6%

$342,881

$332,011

3.3%

West

(includes unconsolidated joint ventures)

Home

208

257

(19.1)%

147

286

(48.6)%

155

168

(7.7)%

(CA)

Dollars

$124,249

$117,819

5.5%

$77,308

$116,784

(33.8)%

$102,644

$83,008

23.7%

Avg. Price

$597,351

$458,441

30.3%

$525,907

$408,335

28.8%

$662,221

$494,097

34.0%

Grand Total

Home

3,109

3,294

(5.6)%

2,469

2,612

(5.5)%

3,032

2,827

7.3%

Dollars

$1,158,835

$1,159,298

(0.0)%

$871,470

$876,970

(0.6)%

$1,135,740

$1,024,551

10.9%

Avg. Price

$372,735

$351,942

5.9%

$352,965

$335,747

5.1%

$374,584

$362,416

3.4%

Consolidated Total

Home

2,901

2,890

0.4%

2,271

2,317

(2.0)%

2,797

2,462