<PAGE>
Exhibit 99.1
HOVNANIAN ENTERPRISES, INC. NEWS RELEASE
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CONTACT: AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD
----------------- ---------------------------------
Kevin C. Hake Amy F. Glynn, CFA
Vice President, Finance 675 Third Avenue
and Treasurer 212-661-8030
732-747-7800
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--------------------------------------------------------------------------------
HOVNANIAN ENTERPRISES REPORTS RECORD RESULTS
FOURTH QUARTER HIGHLIGHTS
- Increased fourth quarter earnings per share 105% to $0.84 from $0.41 in
fiscal 1999.
- Increased revenue for the quarter 18.6% to $353.8 million from $298.4
million last year.
- Increased fourth quarter net contracts from 876 homes to 1,116 homes, up
27.4%.
FISCAL 2000 HIGHLIGHTS
- Achieved record earnings for the full year of $1.50 per fully diluted
share, up from $1.39 per fully diluted share in fiscal 1999.
- Increased revenues to $1.14 billion -- exceeding the billion-dollar mark
for the first time in Company history.
- Increased deliveries 15.9% to 4,367 homes. Net contracts climbed to 4,542
homes valued at $1.10 billion, an increase of 38.4% from last year's
results.
- Increased year-end contract backlog 16.9% in dollar value and 9.1% in
number of homes, to 2,096 homes with a sales value of $538.5 million versus
last year's 1,921 homes with a sales value of $460.7 million.
- Announced a merger with Washington Homes, Inc. (NYSE: WHI), which is
expected to close in January 2001. This will significantly enhance the
Company's market position in Metro D.C. and North Carolina.
- Issued $150 million of 10-1/2% Senior Notes due in 2007, in order to
maintain an appropriate level of long-term capital to support the Company's
significantly larger operations and balance sheet. Combined with strong
fourth quarter cash flow, this enabled the Company to end the year with no
balance outstanding on its $375 million revolving credit facility and $40.0
million in cash on the balance sheet.
- Repurchased 1.03 million shares of Class A Hovnanian common stock at an
average price of $6.29 per share.
<PAGE>
- At the end of fiscal 2000, stockholders' equity grew to $263.4 million, or
$12.42 a share, from $236.4 million, or $10.67 a share at the end of fiscal
1999.
RED BANK, NJ, December 14, 2000 -- Hovnanian Enterprises, Inc. (ASE: HOV), a
leading national homebuilder, reported a 105% improvement in fourth quarter
profits and the highest revenues and profits in its 41-year history for the
fiscal year ended October 31, 2000.
FOURTH QUARTER PERFORMANCE
For the quarter ended October 31, 2000, the Company reported net income of $18.2
million, more than two times the net income of $8.9 million achieved in the 1999
fiscal fourth quarter. Hovnanian earned $0.84 per fully diluted share for the
2000 fiscal fourth quarter, compared to $0.41 per share for the comparable 1999
period. Revenues for the 2000 fourth fiscal quarter were $353.8 million, an
18.6% increase from 1999's fourth quarter revenues of $298.4 million.
Despite a slowing economy, sales continued to show strength through the end of
the fiscal year, with fourth quarter net contracts up 27.4% year-to-year, from
876 homes to 1,116 homes. The dollar value of contract backlog on October 31,
2000 increased 16.9% to $538.5 million or 2,096 homes, compared to $460.7
million or 1,921 homes in 1999.
Deliveries in 2000's final quarter were 1,290 homes or $342.3 million compared
to 1,153 homes or $287.5 million in 1999. Homebuilding gross margin, excluding
land sales, increased to 22.1% in the fourth quarter of fiscal 2000, continuing
a trend of improvement from 18.2% in the first quarter, 20.2% in the second
quarter, and 20.9% in the third quarter.
FISCAL 2000 RESULTS
Net income increased to $33.2 million or $1.50 per fully diluted share for
fiscal 2000, compared to $30.1 million or $1.39 per fully diluted share for
fiscal 1999. Total revenues grew 20.2% to $1.14 billion compared to $946.7
million in fiscal 1999 on a 15.9% increase in deliveries to 4,367 homes. Net
contracts climbed to 4,542 homes valued at $1.10 billion, an increase of 38.4%
from last year's results.
The Company's debt-to-equity ratio was 1.41 to 1.0 at the end of fiscal 2000,
after taking into account approximately $25.0 million of excess cash on the
Company's balance sheet. As expected, this ratio was modestly higher than the
ratio of 1.35 to 1.0 at year-end 1999 as a result of the Texas acquisition,
growth in the Company's California market, and the Company's repurchase of
1,026,647 shares of its Class A common stock during the year at an average cost
of $6.29 per share. The debt-to-equity ratio declined from its peak of 1.72 to
1.0 at July 31, 2000 as a result of strong fourth quarter cash flow.
Shareholders' equity grew to $263.4 million, or $12.42 a share, at fiscal
year-end from $236.4 million, or $10.67 a share at the end of fiscal 1999.
<PAGE>
COMMENTS FROM MANAGEMENT
"Strong housing markets, particularly in our Northeast region, and improvements
generated by our strategic initiatives contributed to these record results,"
said Ara K. Hovnanian, President and Chief Executive Officer of the Company. "As
anticipated at the start of the year, the opening of many new communities during
the year weighted our earnings toward the fourth quarter. We doubled our profit
in that period from the 1999 fourth quarter," he added. "We enter fiscal 2001
with strong sales and a record contract backlog that position us for further
growth in earnings and revenues."
MERGER WITH WASHINGTON HOMES
In late August, Hovnanian announced a merger agreement with Washington Homes,
Inc. Subsequent to the merger, Hovnanian will maintain its current position as
the largest builder in New Jersey and will become the second-largest builder in
Metro-Washington, DC and the largest builder in North Carolina. With
shareholders' equity exceeding $300 million and total assets approaching $1.0
billion, the Company will attain a more substantial market capitalization and
will add liquidity to its stock. In conjunction with the merger, Hovnanian will
issue approximately 5.7 million additional Class A common shares.
The Company anticipates closing the merger in mid to late January, following
shareholder approval. The addition of the Washington Homes operations for
slightly more than three full quarters of fiscal 2001 is expected to add
approximately $.05 to $.10 per share to the Company's net earnings. Mr.
Hovnanian added, "both companies were very careful in evaluating the strategic
fit of our operations and our management philosophies before reaching agreement
to merge. We are already seeing the benefits of this approach as our management
teams plan for the merging of our operations. We are quickly identifying
opportunities for improvements in our construction operations, product design,
marketing, and numerous other areas beyond what we anticipated initially. We are
building a powerful team in North Carolina and Washington D.C. as we work to
blend our two pools of talented associates from senior levels down to the
communities," he said.
FISCAL 2001 EXPECTATIONS
"The housing economy seems to be experiencing a gradual softening," Mr.
Hovnanian commented. "Most of our markets continue to experience strong demand
for housing. The increasingly difficult environment for regulatory approvals in
nearly all municipalities across the country has kept the supply of new housing
from meeting demand in many of our markets. This gives us confidence that the
housing market will support our business plan, even with a moderate downturn in
job creation," he said.
"As we enter fiscal 2001, we remain focused on growth and return on investment,"
added J. Larry Sorsby, Executive Vice President and Chief Financial Officer of
the Company. "Provided economic conditions do not decline sharply, we are
comfortable with consensus projections of earnings for the combined Company
exceeding $1.80 per share in fiscal 2001, a 20% increase from the record year we
just finished. We expect total
<PAGE>
revenues of approximately $1.7 billion and deliveries approaching 7,000 homes.
On a combined basis, the two companies had more than 43% of projected deliveries
in contract backlog at October 31, 2000, giving us confidence that we will be
able to achieve our fiscal 2001 business plan," he said.
"Our pattern of quarterly earnings and year-over-year comparisons will obviously
be somewhat distorted by the timing of the merger," Mr. Sorsby added. "We expect
our first quarter, which is historically our weakest, to reflect results similar
to fiscal 2000's, prior to the effect of any one-time charges associated with
the merger. The next two quarters should show strong improvement in earnings per
share over the prior year period, but the back-loaded fourth quarter that we
just finished will be difficult to match in the fourth quarter of fiscal 2001,"
he said.
IN CLOSING
"The prospects for our Company in fiscal 2001 and beyond are exciting,"
Mr. Hovnanian commented. "Despite recent stock price appreciation, we continue
to believe our Company is undervalued. As we demonstrate the benefits of the
merger -- which we will be able to do quickly -- the market should begin to
recognize our improved scale, liquidity, and market position."
Hovnanian Enterprises, Inc. designs, constructs and markets single-family homes,
townhomes and condominiums in planned residential communities in California,
Maryland, New Jersey, New York, North Carolina, Pennsylvania, Texas and Virginia
in the United States, and in Poland.
NOTE: ALL STATEMENTS IN THIS PRESS RELEASE THAT ARE NOT HISTORICAL FACTS SHOULD
BE CONSIDERED AS "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE
PRIVATE SECURITIES LITIGATION ACT OF 1995. SUCH STATEMENTS INVOLVE KNOWN
AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL
RESULTS TO DIFFER MATERIALLY. SUCH RISKS, UNCERTAINTIES AND OTHER FACTORS
INCLUDE, BUT ARE NOT LIMITED TO, CHANGES IN GENERAL ECONOMIC CONDITIONS,
FLUCTUATIONS IN INTEREST RATES, INCREASES IN RAW MATERIALS AND LABOR
COSTS, LEVELS OF COMPETITION AND OTHER FACTORS DESCRIBED IN DETAIL IN THE
COMPANY'S FORM 10-K FOR THE YEAR ENDED OCTOBER 31, 1999.
(Financial Tables Follow)
<PAGE>
HOVNANIAN ENTERPRISES, INC.
STATEMENT OF CONSOLIDATED INCOME
Amounts in 000's, except per share
<TABLE>
<CAPTION>
Three Months Ended, Twelve Months Ended
October 31, October 31,
-------------------------- -------------------------
2000 1999 2000 1999
--------- ---------- ---------- ----------
(unaudited)
<S> <C> <C> <C> <C>
Total Revenues $353,788 $298,429 $1,137,807 $946,720
Costs and Expenses 324,456 284,529 1,085,989 896,103
--------- ---------- ---------- ----------
Income Before Income Taxes 29,332 13,900 51,818 50,617
Provision for Taxes 11,170 5,015 18,655 19,674
Extraordinary Loss From Extinguishment
of Debt, Net of Income Taxes (868)
--------- ---------- ---------- ----------
Net Income $ 18,162 $ 8,885 $ 33,163 $ 30,075
========= ========== ========== ==========
Per Share Data:
Basic:
Income per common share before
Extraordinary Loss $ 0.85 $ 0.41 $ 1.51 $ 1.45
Extraordinary Loss (0.04)
--------- ---------- ---------- ----------
Net Income $ 0.85 $ 0.41 $ 1.51 $ 1.45
Weighted Average Number of
Common Shares Outstanding 21,463 21,726 21,933 21,404
Assuming Dilution:
Income per common share before
Extraordinary Loss $ 0.84 $ 0.41 $ 1.50 $ 1.43
Extraordinary Loss (0.04)
--------- ---------- ---------- ----------
Net Income $ 0.84 $ 0.41 $ 1.50 $ 1.39
Weighted Average Number of
Common Shares Outstanding 21,704 21,902 22,043 21,612
</TABLE>
<PAGE>
Hovnanian Enterprises, Inc.
OCTOBER 31, 2000
Gross Margin Report
Housing Gross Margin
(Dollars in Thousands)
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
-------------------- -------------------
October 31, October 31,
2000 1999 2000 1999
-------- -------- ---------- --------
Unaudited
<S> <C> <C> <C> <C>
Sale of Homes $342,289 $287,459 $1,105,466 $908,553
Cost of Sales 266,734 230,836 878,740 718,259
-------------------- ---------------------
Housing Gross Margin $ 75,555 $ 56,623 $ 226,726 $190,294
==================== =====================
Gross Margin Percentage 22.1% 19.7% 20.5% 20.9%
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
-------------------- -------------------
October 31, October 31,
2000 1999 2000 1999
-------- -------- ---------- --------
<S> <C> <C> <C> <C>
Land and Lot Sales $3,405 $4,569 $6,549 $12,077
Cost of Sales 1,403 4,608 3,971 11,766
-------------------- ---------------------
Land and Lot Gross Margin $2,002 ($39) $2,578 $ 311
==================== =====================
</TABLE>
<PAGE>
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
OCTOBER 31, OCTOBER 31,
ASSETS 2000 1999
---------- ---------
<S> <C> <C>
HOMEBUILDING:
CASH AND CASH EQUIVALENTS ............................ $ 40,131 $ 17,163
-------- --------
INVENTORIES - AT THE LOWER OF COST OR FAIR VALUE:
SOLD AND UNSOLD HOMES AND LOTS UNDER
DEVELOPMENT ...................................... 525,116 475,196
LAND AND LAND OPTIONS HELD FOR FUTURE
DEVELOPMENT OR SALE .............................. 89,867 52,034
-------- --------
TOTAL INVENTORIES ................................ 614,983 527,230
-------- --------
RECEIVABLES, DEPOSITS, AND NOTES ..................... 36,190 30,675
-------- --------
PROPERTY, PLANT, AND EQUIPMENT - NET ................. 35,594 26,500
-------- --------
SENIOR RESIDENTIAL RENTAL PROPERTIES - NET ........... 10,276 10,650
-------- --------
PREPAID EXPENSES AND OTHER ASSETS .................... 64,897 56,753
-------- --------
TOTAL HOMEBUILDING ............................... 802,071 668,971
-------- --------
FINANCIAL SERVICES:
CASH ................................................. 3,122 2,202
MORTGAGE LOANS HELD FOR SALE ......................... 61,860 33,158
OTHER ASSETS ......................................... 2,145 1,563
-------- --------
TOTAL FINANCIAL SERVICES ......................... 67,127 36,923
-------- --------
COLLATERALIZED MORTGAGE FINANCING:
COLLATERAL FOR BONDS PAYABLE ......................... 4,145 5,006
OTHER ASSETS ......................................... 198 238
-------- --------
TOTAL COLLATERALIZED MORTGAGE FINANCING .......... 4,343 5,244
-------- --------
INCOME TAXES RECEIVABLE - INCLUDING DEFERRED TAX
BENEFITS ............................................. 1,723
-------- --------
TOTAL ASSETS ........................................... $873,541 $712,861
======== ========
</TABLE>
<PAGE>
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
OCTOBER 31, OCTOBER 31,
LIABILITIES AND STOCKHOLDERS' EQUITY 2000 1999
------------ ------------
<S> <C> <C>
HOMEBUILDING:
NONRECOURSE LAND MORTGAGES ............................... $ 18,166 $ 6,407
ACCOUNTS PAYABLE AND OTHER LIABILITIES ................... 82,205 73,989
CUSTOMERS' DEPOSITS ...................................... 31,475 25,647
NONRECOURSE MORTGAGES SECURED BY OPERATING
PROPERTIES ............................................. 3,554 3,662
--------- ---------
TOTAL HOMEBUILDING ................................... 135,400 109,705
--------- ---------
FINANCIAL SERVICES:
ACCOUNTS PAYABLE AND OTHER LIABILITIES ................... 2,078 1,218
MORTGAGE WAREHOUSE LINE OF CREDIT ........................ 56,486 30,034
--------- ---------
TOTAL FINANCIAL SERVICES ............................. 58,564 31,252
--------- ---------
COLLATERALIZED MORTGAGE FINANCING:
BONDS COLLATERALIZED BY MORTGAGES RECEIVABLE ............. 3,007 3,699
--------- ---------
TOTAL COLLATERALIZED MORTGAGE FINANCING .............. 3,007 3,699
--------- ---------
NOTES PAYABLE:
REVOLVING CREDIT AGREEMENT ............................... 70,125
SENIOR NOTES ............................................. 296,430 150,000
SUBORDINATED NOTES ....................................... 100,000 100,000
ACCRUED INTEREST ......................................... 12,709 11,654
--------- ---------
TOTAL NOTES PAYABLE .................................. 409,139 331,779
--------- ---------
INCOME TAXES PAYABLE ....................................... 4,072
--------- ---------
TOTAL LIABILITIES .................................... 610,182 476,435
--------- ---------
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS' EQUITY:
PREFERRED STOCK,$.01 PAR VALUE-AUTHORIZED 100,000
SHARES; NONE ISSUED
COMMON STOCK,CLASS A,$.01 PAR VALUE-AUTHORIZED 87,000,000
SHARES; ISSUED 17,309,369 SHARES IN 2000 AND 17,218,442
SHARES IN 1999 (INCLUDING 3,736,921
SHARES IN 2000 AND 2,710,274 SHARES IN 1999 HELD
IN TREASURY) ........................................... 173 172
COMMON STOCK,CLASS B,$.01 PAR VALUE
(CONVERTIBLE TO CLASS A AT TIME OF SALE)
-AUTHORIZED 13,000,000 SHARES;
ISSUED 7,978,903 SHARES IN 2000 AND 7,997,083 SHARES
IN 1999 (BOTH YEARS INCLUDE 345,874 SHARES HELD
IN TREASURY) ........................................... 79 79
PAID IN CAPITAL .......................................... 46,086 45,856
RETAINED EARNINGS ........................................ 246,420 213,257
TREASURY STOCK - AT COST ................................. (29,399) (22,938)
--------- ---------
TOTAL STOCKHOLDERS' EQUITY ........................... 263,359 236,426
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ................. $ 873,541 $ 712,861
========= =========
</TABLE>
<PAGE>
HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
YEAR ENDED
-------------------------------------
OCTOBER 31, OCTOBER 31, OCTOBER 31,
2000 1999 1998
----------- ----------- -----------
<S> <C> <C> <C>
REVENUES:
HOMEBUILDING:
SALE OF HOMES............................. $1,105,466 $908,553 $895,644
LAND SALES AND OTHER REVENUES............. 13,017 17,409 15,411
----------- --------- ---------
TOTAL HOMEBUILDING...................... 1,118,483 925,962 911,055
FINANCIAL SERVICES.......................... 18,855 20,239 19,098
COLLATERALIZED MORTGAGE FINANCING........... 469 519 683
OTHER OPERATIONS............................ 6,893
----------- --------- ---------
TOTAL REVENUES.......................... 1,137,807 946,720 937,729
----------- --------- ---------
EXPENSES:
HOMEBUILDING:
COST OF SALES............................. 882,711 730,025 748,941
SELLING, GENERAL AND ADMINISTRATIVE....... 104,771 81,396 67,519
INVENTORY IMPAIRMENT LOSS................. 1,791 2,091 3,994
----------- --------- ---------
TOTAL HOMEBUILDING...................... 989,273 813,512 820,454
----------- --------- ---------
FINANCIAL SERVICES.......................... 19,334 19,195 17,010
----------- --------- ---------
COLLATERALIZED MORTGAGE FINANCING........... 416 504 672
----------- --------- ---------
CORPORATE GENERAL AND ADMINISTRATIVE........ 33,309 28,652 21,048
----------- --------- ---------
INTEREST.................................... 34,956 30,343 34,423
----------- --------- ---------
OTHER OPERATIONS............................ 8,701 3,897 2,830
----------- --------- ---------
TOTAL EXPENSES.......................... 1,085,989 896,103 896,437
----------- --------- ---------
INCOME(LOSS)BEFORE INCOME TAXES AND
EXTRAORDINARY LOSS.......................... 51,818 50,617 41,292
----------- --------- ---------
STATE AND FEDERAL INCOME TAXES:
STATE....................................... 2,495 5,093 3,572
FEDERAL..................................... 16,160 14,581 11,569
----------- --------- ---------
TOTAL TAXES............................... 18,655 19,674 15,141
----------- --------- ---------
EXTRAORDINARY LOSS FROM EXTINGUISHMENT OF
DEBT, NET OF INCOME TAXES................... (868) (748)
----------- --------- ---------
NET INCOME (LOSS)............................. $ 33,163 $ 30,075 $ 25,403
=========== ========= =========
PER SHARE DATA:
BASIC:
INCOME (LOSS)PER COMMON SHARE BEFORE
EXTRAORDINARY LOSS...................... $ 1.51 $ 1.45 $ 1.20
EXTRAORDINARY LOSS........................ (.04) (.03)
----------- --------- ---------
INCOME (LOSS)............................. $ 1.51 $ 1.41 $ 1.17
=========== ========= =========
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING................................. 21,933 21,404 21,781
=========== ========= =========
ASSUMING DILUTION:
INCOME (LOSS)PER COMMON SHARE BEFORE
EXTRAORDINARY LOSS...................... $ 1.50 $ 1.43 $ 1.19
EXTRAORDINARY LOSS........................ (.04) (.03)
----------- --------- ---------
INCOME (LOSS)............................. $ 1.50 $ 1.39 $ 1.16
=========== ========= =========
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING................................. 22,043 21,612 22,016
=========== ========= =========
</TABLE>
<PAGE>
HOVNANIAN ENTERPRISES, INC.
INTEREST COSTS INCURRED, EXPENSED AND CAPITALIZED WERE:
<TABLE>
<CAPTION>
YEAR ENDED
--------------------------------------
OCTOBER 31, OCTOBER 31, OCTOBER 31,
2000 1999 1998
----------- ----------- -----------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C>
INTEREST CAPITALIZED AT
BEGINNING OF YEAR.............. $21,966 $25,545 $35,950
PLUS ACQUIRED ENTITY INTEREST.... 3,397
PLUS INTEREST INCURRED........... 38,878 24,594 28,947
LESS INTEREST EXPENSED........... 34,956 30,343 34,423
LESS IMPAIRMENT WRITE-OFF........ 194 460
LESS SALE OF ASSETS.............. 1,227 4,469
------- ------- -------
INTEREST CAPITALIZED AT
END OF YEAR.................... $25,694 $21,966 $25,545
======= ======= =======
</TABLE>
<PAGE>
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVE. PRICE)
COMMUNITIES UNDER DEVELOPMENT
THREE MONTHS - 10/31/00
<TABLE>
<CAPTION>
NET CONTRACTS DELIVERIES
THREE MONTHS ENDED THREE MONTHS ENDED CONTRACT BACKLOG
31-OCT 31-OCT 31-OCT
----------------------------- ---------------------------- -----------------------------
2000 1999 % Change 2000 1999 % Change 2000 1999 % Change
----------------------------- ---------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NE REGION
Homes 457 506 (9.7%) 616 564 9.2% 1,149 1,125 2.1%
Dollars 121,179 135,514 (10.6%) 188,770 164,899 14.5% 311,539 286,149 8.9%
Avg. Price 265,162 267,814 (1.0%) 306,445 292,374 4.8% 271,139 254,355 6.6%
FLORIDA
Homes 13 11 18.2% 24 40 (40.0%) 45 37 21.6%
Dollars 3,759 2,532 48.5% 6,218 9,012 (31.0%) 12,625 8,705 45.0%
Avg. Price 289,154 230,182 25.6% 259,083 225,300 15.0% 280,556 235,270 19.2%
N. CAROLINA
Homes 160 128 25.0% 188 248 (24.2%) 215 207 3.9%
Dollars 29,317 25,757 13.8% 35,016 47,251 (25.9%) 40,635 44,534 (8.8%)
Avg. Price 183,231 201,227 (8.9%) 186,255 190,528 (2.2%) 189,000 215,140 (12.2%)
METRO D.C.
Homes 88 50 76.0% 78 71 9.9% 215 149 44.3%
Dollars 20,354 12,246 66.2% 18,932 15,541 21.8% 52,339 34,484 51.8%
Avg. Price 231,295 244,920 (5.6%) 242,718 218,887 10.9% 243,437 231,436 5.2%
CALIFORNIA
Homes 133 144 (7.6%) 105 163 (35.6%) 151 129 17.1%
Dollars 43,551 36,197 20.3% 39,725 37,290 6.5% 58,098 34,313 69.3%
Avg. Price 327,451 251,368 30.3% 378,333 228,773 65.4% 384,695 265,992 44.6%
TEXAS
Homes 242 25 868.0% 246 66 272.7% 282 261 8.0%
Dollars 51,251 5,416 846.3% 52,188 13,184 295.8% 61,703 51,610 19.6%
Avg. Price 211,781 216,640 (2.2%) 212,146 199,758 6.2% 218,805 197,739 10.7%
POLAND
Homes 23 12 91.7% 33 1 3200.0% 39 13 200.0%
Dollars 812 698 16.3% 1,440 282 410.6% 1,616 865 86.8%
Avg. Price 35,304 58,167 (39.3%) 43,636 282,000 (84.5%) 41,436 66,538 (37.7%)
TOTAL
Homes 1,116 876 27.4% 1,290 1,153 11.9% 2,096 1,921 9.1%
Dollars 270,223 218,360 23.8% 342,289 287,459 19.1% 538,546 460,660 16.9%
Avg. Price 242,135 249,269 (2.9%) 265,340 249,314 6.4% 256,940 239,802 7.1%
</TABLE>
<PAGE>
HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVE. PRICE)
COMMUNITIES UNDER DEVELOPMENT
TWELVE MONTHS - 10/31/00
<TABLE>
<CAPTION>
NET CONTRACTS DELIVERIES
TWELVE MONTHS ENDED TWELVE MONTHS ENDED CONTRACT BACKLOG
31-OCT 31-OCT 31-OCT
----------------------------- ---------------------------- -----------------------------
2000 1999 % Change 2000 1999 % Change 2000 1999 % Change
----------------------------- ---------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NE REGION
Homes 1,963 1,885 4.1% 1,939 2,063 (6.0%) 1,149 1,125 2.1%
Dollars 519,994 451,684 15.1% 561,422 560,586 0.1% 311,539 286,149 8.9%
Avg. Price 264,898 239,620 10.5% 289,542 271,733 6.6% 271,139 254,355 6.6%
FLORIDA
Homes 82 123 (33.3%) 74 159 (53.5%) 45 37 21.6%
Dollars 21,424 27,583 (22.3%) 19,114 36,566 (47.7%) 12,625 8,705 45.0%
Avg. Price 261,268 224,252 16.5% 258,297 229,975 12.3% 280,556 235,270 19.2%
N. CAROLINA
Homes 661 728 (9.2%) 653 756 (13.6%) 215 207 3.9%
Dollars 122,527 140,619 (12.9%) 126,596 145,153 (12.8%) 40,635 44,534 (8.8%)
Avg. Price 185,366 193,158 (4.0%) 193,868 192,001 1.0% 189,000 215,140 (12.2%)
METRO D.C.
Homes 329 232 41.8% 263 198 32.8% 215 149 44.3%
Dollars 82,406 53,862 53.0% 66,137 45,493 45.4% 52,339 34,484 51.8%
Avg. Price 250,474 232,164 7.9% 251,471 229,763 9.4% 243,437 231,436 5.2%
CALIFORNIA
Homes 502 524 (4.2%) 480 514 (6.6%) 151 129 17.1%
Dollars 160,854 115,937 38.7% 143,729 105,941 35.7% 58,089 34,313 69.3%
Avg. Price 320,426 221,254 44.8% 299,435 206,111 45.3% 384,695 265,992 44.6%
TEXAS
Homes 935 25 3460.0% 914 66 1284.8% 282 261 8.0%
Dollars 192,460 5,416 3453.5% 186,294 13,184 1313.0% 61,703 51,610 19.6%
Avg. Price 205,840 216,640 (5.0%) 203,823 199,758 2.0% 218,805 197,739 10.7%
POLAND
Homes 70 18 288.9% 44 12 266.7% 39 13 200.0%
Dollars 2,437 1,352 80.3% 2,174 1,630 33.4% 1,616 865 86.8%
Avg. Price 34,814 75,111 (53.6%) 49,409 135,833 (63.6%) 41,436 66,538 (37.7%)
TOTAL
Homes 4,542 3,535 28.5% 4,367 3,768 15.9% 2,096 1,921 9.1%
Dollars 1,102,102 796,453 38.4% 1,105,466 908,553 21.7% 538,546 460,660 16.9%
Avg. Price 242,647 225,305 7.7% 253,141 241,123 5.0% 256,940 239,802 7.1%
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