Hovnanian Quarterly Report
Hovnanian posts 5th straight loss
Hovnanian Enterprises Inc., a big developer here in Hudson County, extended it’s streak of quarterly losses to five in a row, citing the increase of buyers who are canceling their contracts to buy new homes.
The company (HOV) lost $467 million dollars ($7.42 per share) in the quarter ending on October 31, 2007. This loss is $350 million more than the loss during the same period in 2006.
Despite the nearly half a billion dollar loss, the company remains optimistic, reporting $376 million of “positive cash flow” from the recent quarter, and is hoping to generate more than $100 more in fiscal 2008. CEO Ara K. Hovnanian said that he is “pleased” to have exceeded their expectations for cash generation in the fourth quarter and said that they paid their debt levels down more than originally anticipated. Hovnanian also said that sales so far during a typically slow December have improved slightly.
Not sure about you, but if I lost over $450 million dollars, it’d be hard sugar coat that news with optimism. But I guess I’d have no other choice. It’s along the same lines as: “I lost my job, my girlfriend dumped me, I misplaced the winning lottery ticket, but I saved money on my car insurance!”