Hovnanian Enterprises Reports Fiscal 2021 Fourth Quarter and Full Year Results

$190 Million Pretax Profit in Fiscal 2021 a 243% Increase Over the Prior Year
82% Year-over-Year Increase in Fourth Quarter Pretax Profit
Gross Margin Percentage Increased 390 Basis Points Year-over-Year for Full Year
Consolidated Backlog Dollars Increased to $1.64 Billion
Community Count Increased to 140 up 17% Sequentially From the Third Quarter

MATAWAN, N.J., Dec. 09, 2021 (GLOBE NEWSWIRE) — Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, reported results for its fiscal fourth quarter and year ended October 31, 2021.

RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED OCTOBER 31, 2021:

• Total revenues increased 19.2% to $814.3 million in the fourth quarter of fiscal 2021, compared with $683.4 million in the same quarter of the prior year. For the year ended October 31, 2021, total revenues increased 18.7% to $2.78 billion compared with $2.34 billion in the prior fiscal year.
• Homebuilding gross margin percentage, after cost of sales interest expense and land charges, increased 200 basis points to 19.4% for the three months ended October 31, 2021 compared with 17.4% during the same period a year ago. During fiscal 2021, homebuilding gross margin percentage, after cost of sales interest expense and land charges, was 18.6%, up 390 basis points, compared with 14.7% in the prior fiscal year.
• Homebuilding gross margin percentage, before cost of sales interest expense and land charges, increased 260 basis points to 22.8% during the fiscal 2021 fourth quarter compared with 20.2% in last year’s fourth quarter. For the year ended October 31, 2021, homebuilding gross margin percentage, before cost of sales interest expense and land charges, was 21.8%, up 340 basis points, compared with 18.4% in the previous fiscal year.
• Total SG&A was $70.0 million, or 8.6% of total revenues, in the fiscal 2021 fourth quarter compared with $65.6 million, or 9.6% of total revenues, in the previous year’s fourth quarter. During fiscal 2021, total SG&A was $276.6 million, or 9.9% of total revenues, compared with $241.8 million, or 10.3% of total revenues, in the prior fiscal year.
• Total interest expense as a percent of total revenues improved by 120 basis points to 4.7% for the fourth quarter of fiscal 2021 compared with 5.9% during the fourth quarter of fiscal 2020. For the year ended October 31, 2021, total interest expense as a percent of total revenues improved by 180 basis points to 5.8% compared with 7.6% during the same period last year.
• Income before income taxes for the fourth quarter of fiscal 2021 was $77.4 million, up 82.5%, compared with $42.4 million in the fourth quarter of the prior fiscal year. For fiscal 2021, income before income taxes increased 242.7% to $189.9 million compared with $55.4 million during fiscal 2020.
• Net income was $52.5 million, or $7.41 per diluted common share, for the three months ended October 31, 2021 compared with net income of $40.6 million, or $5.54 per diluted common share, in the fourth quarter of the previous fiscal year. For fiscal 2021, net income, including the $468.6 million benefit from the valuation allowance reduction, was $607.8 million, or $85.86 per diluted common share, compared with $50.9 million, or $7.03 per diluted common share, in fiscal 2020.
• EBITDA increased 38.6% to $117.2 million for the fourth quarter of fiscal 2021 compared with $84.5 million in the same quarter of the prior year. For fiscal 2021, EBITDA was $357.0 million, a 49.5% increase, compared with $238.8 million in fiscal 2020.

• After the unprecedented and unsustainable COVID-19 surge in home demand during last year’s fourth quarter, contracts per community returned to a more normalized sales pace in the fourth quarter of 2021. Consolidated contracts per community decreased to 10.2 contracts per community for the fourth quarter ended October 31, 2021 compared to 16.5 contracts per community in last year’s fourth quarter but increased compared with 9.5 contracts per community in the fourth quarter of 2019. Contracts per community, including domestic unconsolidated joint ventures⁽¹⁾, decreased to 9.9 contracts per community for the fourth quarter of fiscal 2021 compared with 15.9 contracts per community for the fourth quarter of fiscal 2020, but increased compared to 9.1 contracts per community for the fiscal 2019 fourth quarter.
• As of the end of fiscal 2021, community count, including domestic unconsolidated joint ventures, increased to 140 communities, compared with 135 communities at October 31, 2020. Consolidated community count was 124 as of October 31, 2021, compared with 116 communities at the end of the previous year’s fourth quarter.
• Consolidated contract dollars decreased in the fourth quarter of fiscal 2021 to $660.4 million (1,263 homes) compared with $828.9 million (1,918 homes) in the same quarter last year but increased 27.5% compared to $517.8 million (1,345 homes) in the fourth quarter of fiscal 2019. Contract dollars, including domestic unconsolidated joint ventures, for the three months ended October 31, 2021 decreased 22.3% to $749.5 million (1,389 homes) compared with $964.8 million (2,143 homes) in the fourth quarter of fiscal 2020 but increased 25.3% compared to $597.9 million (1,479 homes) in the fourth quarter of fiscal 2019.
• For the year ended October 31, 2021, consolidated contract dollars increased 2.6% to $2.89 billion (6,023 homes) compared with $2.81 billion (6,953 homes) in the prior year. Contract dollars, including domestic unconsolidated joint ventures, for fiscal 2021 increased 1.5% to $3.30 billion (6,687 homes) compared with $3.25 billion (7,692 homes) in fiscal 2020.
• The dollar value of November 2021 consolidated contracts increased 10.5% to $239.7 million (467 homes) compared with $217.0 million (493 homes) in November last year and increased 50.2% compared to $159.6 million (404 homes) in November 2019.
• The dollar value of consolidated contract backlog, as of October 31, 2021, increased 15.4% to $1.64 billion compared with $1.42 billion as of October 31, 2020. The dollar value of contract backlog, including domestic unconsolidated joint ventures, as of October 31, 2021, increased 17.2% to $1.88 billion compared with $1.60 billion as of October 31, 2020.
• Consolidated deliveries increased 8.3% to 1,703 homes in the fiscal 2021 fourth quarter compared with 1,572 homes in the previous year’s fourth quarter. For the fiscal 2021 fourth quarter, deliveries, including domestic unconsolidated joint ventures, increased 6.0% to 1,839 homes compared with 1,735 homes during the fourth quarter of fiscal 2020.
• For fiscal 2021, consolidated deliveries increased 9.1% to 6,204 homes compared with 5,686 homes in the previous year. For fiscal 2021, deliveries, including domestic unconsolidated joint ventures, increased 5.9% to 6,793 homes compared with 6,414 homes during fiscal 2020.
• The contract cancellation rate for consolidated contracts was 15% for the fourth quarter ended October 31, 2021 compared with 18% in the fiscal 2020 fourth quarter. The contract cancellation rate for contracts including domestic unconsolidated joint ventures was 14% for the fourth quarter of fiscal 2021 compared with 17% in the fourth quarter of the prior year.

⁽¹⁾ When we refer to “Domestic Unconsolidated Joint Ventures”, we are excluding results from our single community unconsolidated joint venture in the Kingdom of Saudi Arabia (KSA).

LIQUIDITY AND INVENTORY AS OF OCTOBER 31, 2021:

• During the fourth quarter of fiscal 2021, land and land development spending was $167.1 million. For fiscal 2021, land and land development spending was $698.3 million, an increase of 11.9% compared with $624.2 million one year ago.
• Total liquidity at October 31, 2021 was $380.9 million, after early retirement of $181 million of senior secured notes in fiscal 2021, well above our targeted liquidity range of $170 million to $245 million.
• In the fourth quarter of fiscal 2021, approximately 3,400 lots were put under option or acquired in 29 consolidated communities.
• As of October 31, 2021, the total controlled consolidated lots increased 18.5% to 30,874 compared with 26,049 lots at the end of the previous year. Based on trailing twelve-month deliveries, the current position equaled a 5.0 years’ supply.

FINANCIAL GUIDANCE⁽²⁾:

Financial guidance below assumes no adverse changes in current market conditions, including further deterioration in the supply chain, and excludes further impact to SG&A expenses from phantom stock expense related solely to stock price movements from the closing price of $84.26 at October 29, 2021.

• For the first quarter of fiscal 2022, total revenues are expected to be between $640 million and $670 million, gross margin, before cost of sales interest expense and land charges, is expected to be between 20.5% and 22.0% and adjusted pretax income is expected to be between $30 million and $35 million.
• For the second quarter of fiscal 2022, total revenues are expected to be between $700 million and $750 million, gross margin, before cost of sales interest expense and land charges, is expected to be between 23.0% and 25.0% and adjusted pretax income is expected to be between $60 million and $75 million.
• For all of fiscal 2022, total revenues are expected to be between $2.80 billion and $3.00 billion, gross margin, before cost of sales interest expense and land charges, is expected to be between 23.5% and 25.5%, adjusted pretax income is expected to be between $260 million and $310 million, adjusted EBITDA is expected to be between $410 million and $460 million and fully diluted earnings per share is expected to be between $26.50 and $32.00. At the midpoint of our guidance, we anticipate our shareholders equity to increase by approximately 105% by October 31, 2022.

⁽²⁾ The Company cannot provide a reconciliation between its non-GAAP projections and the most directly comparable GAAP measures without unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items required for the reconciliation. These items include, but are not limited to, land-related charges, inventory impairment loss and land option write-offs and loss (gain) on extinguishment of debt. These items are uncertain, depend on various factors and could have a material impact on GAAP reported results.

COMMENTS FROM MANAGEMENT:

“Supply chain issues have plagued the housing industry, which caused us to conservatively revise our year end guidance down during the fourth quarter,” stated Ara K. Hovnanian, Chairman of the Board, President and Chief Executive Officer. “However, our associates rose to the occasion and worked diligently to mitigate supply chain obstacles and deliver quality homes without some of the excess costs we thought might be necessary to complete the homes. Those extraordinary efforts allowed us to achieve operating results for the fourth quarter exceeding the upper end of our original guidance for adjusted gross margin, adjusted pretax income and adjusted EBITDA. Given the solid level of sales per community, an increase in our community count and higher gross margin on current sales and homes in backlog, we are anticipating significant growth in profitability in fiscal 2022 beginning with a strong first quarter.”

“Our strong results during fiscal 2021 resulted in our key credit metrics improving substantially. We lowered our total debt to adjusted EBITDA ratio to 3.8 times at the end of fiscal 2021 compared with 6.7 times at the end of the previous year. Additionally, our adjusted EBITDA to interest incurred ratio increased to 2.3 times for fiscal 2021 compared with 1.3 times for fiscal 2020. We expect to continue our trend of improving our key credit metrics in future periods and are pleased to announce our Board of Directors approved reinstating a $2.7 million dividend payment on our preferred stock payable in January 2022,” said J. Larry Sorsby, Executive Vice President and Chief Financial Officer.

Mr. Hovnanian continued, “Our pretax income increased substantially to almost $200 million in fiscal 2021. Additionally, we generated significant amounts of cash in fiscal 2021, allowing us to payoff $181 million of our secured bonds ahead of maturity and we still ended the year with $381 million of liquidity, well above the upper end of our liquidity target of $245 million. After increasing equity substantially in fiscal 2021, we expect to achieve diluted earnings per share of between $26.50 and $32.00 for the full fiscal 2022 year and expect to more than double our shareholders equity by fiscal year end. Given that we are entering fiscal 2022 with over half of our revenue guidance in backlog, combined with our strong sales pace and gross margins, we look forward to an extraordinarily strong new year,” concluded Mr. Hovnanian.

WEBCAST INFORMATION:

Hovnanian Enterprises will webcast its fiscal 2021 fourth quarter financial results conference call at 11:00 a.m. E.T. on Thursday, December 9, 2021. The webcast can be accessed live through the “Investor Relations” section of Hovnanian Enterprises’ website at http://www.khov.com. For those who are not available to listen to the live webcast, an archive of the broadcast will be available under the “Past Events” section of the Investor Relations page on the Hovnanian website at http://www.khov.com. The archive will be available for 12 months.

ABOUT HOVNANIAN ENTERPRISES, INC.:

Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, is headquartered in Matawan, New Jersey and, through its subsidiaries, is one of the nation’s largest homebuilders with operations in Arizona, California, Delaware, Florida, Georgia, Illinois, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina, Texas, Virginia, Washington, D.C. and West Virginia. The Company’s homes are marketed and sold under the trade name K. Hovnanian^® Homes. Additionally, the Company’s subsidiaries, as developers of K. Hovnanian’s^® Four Seasons communities, make the Company one of the nation’s largest builders of active lifestyle communities.

Additional information on Hovnanian Enterprises, Inc. can be accessed through the “Investor Relations” section of the Hovnanian Enterprises’ website at http://www.khov.com. To be added to Hovnanian’s investor e-mail list, please send an e-mail to [email protected] or sign up at http://www.khov.com.

NON-GAAP FINANCIAL MEASURES:

Consolidated earnings before interest expense and income taxes (“EBIT”) and before depreciation and amortization (“EBITDA”) and before inventory impairment loss and land option write-offs and loss (gain) on extinguishment of debt (“Adjusted EBITDA”) are not U.S. generally accepted accounting principles (GAAP) financial measures. The most directly comparable GAAP financial measure is net income. The reconciliation for historical periods of EBIT, EBITDA and Adjusted EBITDA to net income is presented in a table attached to this earnings release.

Homebuilding gross margin, before cost of sales interest expense and land charges, and homebuilding gross margin percentage, before cost of sales interest expense and land charges, are non-GAAP financial measures. The most directly comparable GAAP financial measures are homebuilding gross margin and homebuilding gross margin percentage, respectively. The reconciliation for historical periods of homebuilding gross margin, before cost of sales interest expense and land charges, and homebuilding gross margin percentage, before cost of sales interest expense and land charges, to homebuilding gross margin and homebuilding gross margin percentage, respectively, is presented in a table attached to this earnings release.

Adjusted pretax income, which is defined as income before income taxes excluding land-related charges and loss (gain) on extinguishment of debt is a non-GAAP financial measure. The most directly comparable GAAP financial measure is income before income taxes. The reconciliation for historical periods of adjusted pretax income to income before income taxes is presented in a table attached to this earnings release.

Total liquidity is comprised of $246.0 million of cash and cash equivalents, $9.9 million of restricted cash required to collateralize letters of credit and $125.0 million availability under the senior secured revolving credit facility as of October 31, 2021.

FORWARD-LOOKING STATEMENTS

All statements in this press release that are not historical facts should be considered as “Forward-Looking Statements” within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. 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. Such forward-looking statements include but are not limited to statements related to the Company’s goals and expectations with respect to its financial results for future financial periods. 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. By their nature, forward-looking statements: (i) speak only as of the date they are made, (ii) are not guarantees of future performance or results and (iii) are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from those forward-looking statements as a result of a variety of factors. 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 a significant homebuilding downturn; (2) shortages in, and price fluctuations of, raw materials and labor, including due to changes in trade policies, including the imposition of tariffs and duties on homebuilding materials and products and related trade disputes with and retaliatory measures taken by other countries; (3) the outbreak and spread of COVID-19 and the measures that governments, agencies, law enforcement and/or health authorities implement to address it; (4) adverse weather and other environmental conditions and natural disasters; (5) the seasonality of the Company’s business; (6) the availability and cost of suitable land and improved lots and sufficient liquidity to invest in such land and lots; (7) reliance on, and the performance of, subcontractors; (8) regional and local economic factors, including dependency on certain sectors of the economy, and employment levels affecting home prices and sales activity in the markets where the Company builds homes; (9) increases in cancellations of agreements of sale; (10) fluctuations in interest rates and the availability of mortgage financing; (11) changes in tax laws affecting the after-tax costs of owning a home; (12) legal claims brought against us and not resolved in our favor, such as product liability litigation, warranty claims and claims made by mortgage investors; (13) levels of competition; (14) utility shortages and outages or rate fluctuations; (15) information technology failures and data security breaches; (16) negative publicity; (17) high leverage and restrictions on the Company’s operations and activities imposed by the agreements governing the Company’s outstanding indebtedness; (18) availability and terms of financing to the Company; (19) the Company’s sources of liquidity; (20) changes in credit ratings; (21) government regulation, including regulations concerning development of land, the home building, sales and customer financing processes, tax laws and the environment; (22) operations through unconsolidated joint ventures with third parties; (23) significant influence of the Company’s controlling stockholders; (24) availability of net operating loss carryforwards; (25) loss of key management personnel or failure to attract qualified personnel; and (26) certain risks, uncertainties and other factors described in detail in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2020 and the Company’s Quarterly Reports on Form 10-Q for the quarterly periods during fiscal 2021 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.

 

Hovnanian Enterprises, Inc.
October 31, 2021
Statements of consolidated operations
(In thousands, except per share data)
				Three Months Ended							Year Ended
				October 31,							October 31,
					2021				2020			2021				2020
				(Unaudited)							(Unaudited)
Total revenues				$814,348				$683,358			$2,782,857				$2,343,901
Costs and expenses (1)					732,742				644,060			2,598,097				2,318,400
(Loss) gain on extinguishment of debt					(3,442	)			–			(3,748	)			13,337
(Loss) income from unconsolidated joint ventures					(719	)			3,146			8,849				16,565
Income before income taxes					77,445				42,444			189,861				55,403
Income tax provision (benefit)					24,965				1,810			(417,956	)			4,475
Net income				$52,480				$40,634			$607,817				$50,928
Per share data:
Basic:
	Net income per common share			$7.53				$5.97			$87.50				$7.48
	Weighted average number of
		common shares outstanding			6,360				6,221			6,287				6,189
Assuming dilution:
	Net income per common share			$7.41				$5.54			$85.86				$7.03
	Weighted average number of
		common shares outstanding			6,467				6,699			6,395				6,584
(1) Includes inventory impairment loss and land option write-offs.
Hovnanian Enterprises, Inc.
October 31, 2021
Reconciliation of income before income taxes excluding land-related charges and loss (gain) on extinguishment of debt to income before income taxes
(In thousands)
				Three Months Ended							Year Ended
				October 31,							October 31,
					2021				2020			2021				2020
				(Unaudited)							(Unaudited)
Income before income taxes				$77,445				$42,444			$189,861				$55,403
Inventory impairment loss and land option write-offs					363				2,611			3,630				8,813
Loss (gain) on extinguishment of debt					3,442				–			3,748				(13,337	)
Income before income taxes excluding land-related charges and loss (gain) on extinguishment of debt (1)				$81,250				$45,055			$197,239				$50,879
(1) Income before income taxes excluding land-related charges and loss (gain) on extinguishment of debt is a non-GAAP financial measure. The most directly comparable GAAP financial measure is income before income taxes.

Hovnanian Enterprises, Inc.
October 31, 2021
Gross margin
(In thousands)
		Homebuilding Gross Margin								Homebuilding Gross Margin
		Three Months Ended								Year Ended
		October 31,								October 31,
			2021				2020				2021				2020
		(Unaudited)								(Unaudited)
Sale of homes		$779,551				$643,516				$2,673,710				$2,252,029
Cost of sales, excluding interest expense and land charges (1)			602,097				513,416				2,091,016				1,837,332
Homebuilding gross margin, before cost of sales interest expense and land charges (2)			177,454				130,100				582,694				414,697
Cost of sales interest expense, excluding land sales interest expense			25,939				15,707				82,181				74,174
Homebuilding gross margin, after cost of sales interest expense, before land charges (2)			151,515				114,393				500,513				340,523
Land charges			363				2,611				3,630				8,813
Homebuilding gross margin		$151,152				$111,782				$496,883				$331,710
Homebuilding Gross margin percentage			19.4	%			17.4	%			18.6	%			14.7	%
Homebuilding Gross margin percentage, before cost of sales interest expense and land charges (2)			22.8	%			20.2	%			21.8	%			18.4	%
Homebuilding Gross margin percentage, after cost of sales interest expense, before land charges (2)			19.4	%			17.8	%			18.7	%			15.1	%
		Land Sales Gross Margin								Land Sales Gross Margin
		Three Months Ended								Year Ended
		October 31,								October 31,
			2021				2020				2021				2020
		(Unaudited)								(Unaudited)
Land and lot sales		$13,634				$16,805				$25,364				$16,905
Land and lot sales cost of sales, excluding interest and land charges (1)			10,059				10,993				19,180				11,154
Land and lot sales gross margin, excluding interest and land charges			3,575				5,812				6,184				5,751
Land and lot sales interest			31				84				1,919				156
Land and lot sales gross margin, including interest and excluding land charges		$3,544				$5,728				$4,265				$5,595
(1) Does not include cost associated with walking away from land options or inventory impairment losses which are recorded as Inventory impairment loss and land option write-offs in the Consolidated Statements of Operations.
(2) Homebuilding gross margin, before cost of sales interest expense and land charges, and homebuilding gross margin percentage, before cost of sales interest expense and land charges, are non-GAAP financial measures. The most directly comparable GAAP financial measures are homebuilding gross margin and homebuilding gross margin percentage, respectively.

Hovnanian Enterprises, Inc.
October 31, 2021
Reconciliation of adjusted EBITDA to net income
(In thousands)
	Three Months Ended						Year Ended
	October 31,						October 31,
		2021			2020			2021				2020
	(Unaudited)						(Unaudited)
Net income	$52,480			$40,634			$607,817				$50,928
Income tax provision (benefit)		24,965			1,810			(417,956	)			4,475
Interest expense		38,520			40,648			161,816				178,131
EBIT (1)		115,965			83,092			351,677				233,534
Depreciation and amortization		1,189			1,407			5,280				5,304
EBITDA (2)		117,154			84,499			356,957				238,838
Inventory impairment loss and land option write-offs		363			2,611			3,630				8,813
Loss (gain) on extinguishment of debt		3,442			–			3,748				(13,337	)
Adjusted EBITDA (3)	$120,959			$87,110			$364,335				$234,314
Interest incurred	$33,006			$41,660			$155,514				$176,457
Adjusted EBITDA to interest incurred		3.66			2.09			2.34				1.33
Nonrecourse mortgages secured by inventory, net of debt issuance costs							$125,089				$135,122
Senior notes and credit facilities (net of discounts, premiums and debt issuance costs)								1,248,373				1,431,110
Total debt							$1,373,462				$1,566,232
Total debt to adjusted EBITDA								3.8				6.7
(1) EBIT is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income. EBIT represents earnings before interest expense and income taxes.
(2) EBITDA is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income. EBITDA represents earnings before interest expense, income taxes, depreciation and amortization.
(3) Adjusted EBITDA is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income. Adjusted EBITDA represents earnings before interest expense, income taxes, depreciation, amortization, inventory impairment loss and land option write-offs and (loss) gain on extinguishment of debt.
Hovnanian Enterprises, Inc.
October 31, 2021
Interest incurred, expensed and capitalized
(In thousands)
	Three Months Ended						Year Ended
	October 31,						October 31,
		2021			2020			2021				2020
	(Unaudited)						(Unaudited)
Interest capitalized at beginning of period	$63,673			$63,998			$65,010				$71,264
Plus interest incurred		33,006			41,660			155,514				176,457
Less interest expensed		38,520			40,648			161,816				178,131
Less interest contributed to unconsolidated joint venture (1)		–			–			3,667				4,580
Plus interest acquired from unconsolidated joint venture (2)		–			–			3,118				–
Interest capitalized at end of period (3)	$58,159			$65,010			$58,159				$65,010
(1) Represents capitalized interest which was included as part of the assets contributed to joint ventures the company entered into in April 2021 and December 2019 during the years ended October 31, 2021 and 2020, respectively. There was no impact to the Consolidated Statement of Operations as a result of this transaction.
(2) Represents capitalized interest which was included as part of the assets purchased from a joint venture the company exited out of in June 2021 during the year ended October 31, 2021. There was no impact to the Consolidated Statement of Operations as a result of this transaction.
(3) Capitalized interest amounts are shown gross before allocating any portion of impairments to capitalized interest.

HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)

		October 31,					October 31,
		2021					2020
ASSETS
Homebuilding:
Cash and cash equivalents			$245,970					$262,489
Restricted cash and cash equivalents				16,089					14,731
Inventories:
Sold and unsold homes and lots under development				1,019,541					921,594
Land and land options held for future development or sale				135,992					91,957
Consolidated inventory not owned				98,727					182,224
Total inventories				1,254,260					1,195,775
Investments in and advances to unconsolidated joint ventures				60,897					103,164
Receivables, deposits and notes, net				39,934					33,686
Property, plant and equipment, net				18,736					18,185
Prepaid expenses and other assets				56,186					58,705
Total homebuilding				1,692,072					1,686,735
Financial services				202,758					140,607
Deferred tax assets, net				425,678					–
Total assets			$2,320,508					$1,827,342
LIABILITIES AND EQUITY
Homebuilding:
Nonrecourse mortgages secured by inventory, net of debt issuance costs			$125,089					$135,122
Accounts payable and other liabilities				426,381					359,274
Customers’ deposits				68,295					48,286
Liabilities from inventory not owned, net of debt issuance costs				62,762					131,204
Senior notes and credit facilities (net of discounts, premiums and debt issuance costs)				1,248,373					1,431,110
Accrued Interest				28,154					35,563
Total homebuilding				1,959,054					2,140,559
Financial services				182,219					119,045
Income taxes payable				3,851					3,832
Total liabilities				2,145,124					2,263,436
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 October 31, 2021 and October 31, 2020				135,299					135,299
Common stock, Class A, $0.01 par value – authorized 16,000,000 shares; issued 6,066,152 shares at October 31, 2021 and 5,990,310 shares at October 31, 2020				61					60
Common stock, Class B, $0.01 par value (convertible to Class A at time of sale) – authorized 2,400,000 shares; issued 686,888 shares at October 31, 2021 and 649,886 shares at October 31, 2020				7					7
Paid in capital – common stock				722,118					718,110
Accumulated deficit				(567,228	)				(1,175,045	)
Treasury stock – at cost – 470,430 shares of Class A common stock and 27,669 shares of Class B common stock at October 31, 2021 and October 31, 2020				(115,360	)				(115,360	)
Total Hovnanian Enterprises, Inc. stockholders’ equity (deficit)				174,897					(436,929	)
Noncontrolling interest in consolidated joint ventures				487					835
Total equity (deficit)				175,384					(436,094	)
Total liabilities and equity			$2,320,508					$1,827,342

HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Per Share Data)
(Unaudited)

		Three Months Ended October 31,										Years Ended October 31,
		2021					2020					2021					2020
Revenues:
Homebuilding:
Sale of homes			$779,551					$643,516					$2,673,710					$2,252,029
Land sales and other revenues				14,175					17,350					27,455					19,710
Total homebuilding				793,726					660,866					2,701,165					2,271,739
Financial services				20,622					22,492					81,692					72,162
Total revenues				814,348					683,358					2,782,857					2,343,901
Expenses:
Homebuilding:
Cost of sales, excluding interest				612,156					524,409					2,110,196					1,848,486
Cost of sales interest				25,970					15,791					84,100					74,330
Inventory impairment loss and land option write-offs				363					2,611					3,630					8,813
Total cost of sales				638,489					542,811					2,197,926					1,931,629
Selling, general and administrative				44,475					39,374					169,892					161,261
Total homebuilding expenses				682,964					582,185					2,367,818					2,092,890
Financial services				11,176					10,383					44,129					40,060
Corporate general and administrative				25,545					26,213					106,694					80,553
Other interest				12,550					24,857					77,716					103,801
Other operations				507					422					1,740					1,096
Total expenses				732,742					644,060					2,598,097					2,318,400
(Loss) gain on extinguishment of debt				(3,442	)				–					(3,748	)				13,337
(Loss) income from unconsolidated joint ventures				(719	)				3,146					8,849					16,565
Income before income taxes				77,445					42,444					189,861					55,403
State and federal income tax provision (benefit):
State				6,924					1,810					(82,348	)				4,475
Federal				18,041					–					(335,608	)				–
Total income taxes				24,965					1,810					(417,956	)				4,475
Net income			$52,480					$40,634					$607,817					$50,928
Per share data:
Basic:
Net income per common share			$7.53					$5.97					$87.50					$7.48
Weighted-average number of common shares outstanding				6,360					6,221					6,287					6,189
Assuming dilution:
Net income per common share			$7.41					$5.54					$85.86					$7.03
Weighted-average number of common shares outstanding				6,467					6,699					6,395					6,584

HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA EXCLUDES UNCONSOLIDATED JOINT VENTURES)
		Contracts (1)						Deliveries						Contract
		Three Months Ended						Three Months Ended						Backlog
		October 31,						October 31,						October 31,
			2021		2020	% Change			2021		2020	% Change			2021		2020	% Change
Northeast
(NJ, PA)	Home		74		95	(22.1)%			62		78	(20.5)%			172		130	32.3%
	Dollars	$60,812		$63,326		(4.0)%		$45,055		$42,218		6.7%		$138,396		$82,111		68.5%
	Avg. Price	$821,784		$666,589		23.3%		$726,694		$541,256		34.3%		$804,628		$631,623		27.4%
Mid-Atlantic(2)
(DE, MD, VA, WV)	Home		190		253	(24.9)%			268		219	22.4%			508		557	(8.8)%
	Dollars	$127,625		$135,364		(5.7)%		$154,202		$114,221		35.0%		$342,189		$291,115		17.5%
	Avg. Price	$671,711		$535,036		25.5%		$575,381		$521,557		10.3%		$673,600		$522,648		28.9%
Midwest
(IL, OH)	Home		154		249	(38.2)%			197		187	5.3%			605		596	1.5%
	Dollars	$56,684		$79,999		(29.1)%		$67,340		$59,498		13.2%		$194,446		$169,517		14.7%
	Avg. Price	$368,078		$321,281		14.6%		$341,827		$318,171		7.4%		$321,398		$284,424		13.0%
Southeast
(FL, GA, SC)	Home		175		163	7.4%			194		169	14.8%			421		298	41.3%
	Dollars	$97,285		$74,765		30.1%		$87,718		$73,741		19.0%		$221,425		$146,971		50.7%
	Avg. Price	$555,914		$458,681		21.2%		$452,155		$436,337		3.6%		$525,950		$493,191		6.6%
Southwest
(AZ, TX)	Home		507		712	(28.8)%			723		584	23.8%			1,076		1,066	0.9%
	Dollars	$217,919		$245,813		(11.3)%		$282,128		$194,505		45.0%		$459,820		$360,225		27.6%
	Avg. Price	$429,821		$345,243		24.5%		$390,219		$333,057		17.2%		$427,342		$337,922		26.5%
West
(CA)	Home		163		446	(63.5)%			259		335	(22.7)%			465		755	(38.4)%
	Dollars	$100,067		$229,656		(56.4)%		$143,108		$159,332		(10.2)%		$282,430		$369,887		(23.6)%
	Avg. Price	$613,908		$514,924		19.2%		$552,541		$475,618		16.2%		$607,376		$489,917		24.0%
Consolidated Total
	Home		1,263		1,918	(34.2)%			1,703		1,572	8.3%			3,247		3,402	(4.6)%
	Dollars	$660,392		$828,923		(20.3)%		$779,551		$643,515		21.1%		$1,638,706		$1,419,826		15.4%
	Avg. Price	$522,876		$432,181		21.0%		$457,752		$409,361		11.8%		$504,683		$417,350		20.9%
Unconsolidated Joint Ventures (2, 3)
(excluding KSA JV)	Home		126		225	(44.0)%			136		163	(16.6)%			375		326	15.0%
	Dollars	$89,062		$135,906		(34.5)%		$81,351		$102,043		(20.3)%		$241,619		$184,524		30.9%
	Avg. Price	$706,841		$604,027		17.0%		$598,169		$626,031		(4.5)%		$644,317		$566,025		13.8%
Grand Total
	Home		1,389		2,143	(35.2)%			1,839		1,735	6.0%			3,622		3,728	(2.8)%
	Dollars	$749,454		$964,829		(22.3)%		$860,902		$745,558		15.5%		$1,880,325		$1,604,350		17.2%
	Avg. Price	$539,564		$450,224		19.8%		$468,136		$429,716		8.9%		$519,140		$430,351		20.6%
KSA JV Only
	Home		247		326	(24.2)%			0		0	0.0%			1,913		1,092	75.2%
	Dollars	$38,731		$51,110		(24.2)%		$0		$0		0.0%		$300,384		$171,673		75.0%
	Avg. Price	$156,806		$156,779		0.0%		$0		$0		0.0%		$157,022		$157,210		(0.1)%
DELIVERIES INCLUDE EXTRAS
Notes:
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.
(2) Reflects the reclassification of 14 homes and $7.4 million of contract backlog as of October 31, 2021 from unconsolidated joint ventures to the consolidated Mid-Atlantic segment. This is related to our acquisition of the remaining assets and liabilities from one of our unconsolidated joint ventures which was dissolved during the fourth quarter of fiscal 2021.
(3) Represents home deliveries, home revenues and average prices for our unconsolidated homebuilding joint ventures for the period. We provide this data as a supplement to our consolidated results as an indicator of the volume managed in our unconsolidated homebuilding joint ventures. Our proportionate share of the income or loss of unconsolidated homebuilding and land development joint ventures is reflected as a separate line item in our consolidated financial statements under “Income from unconsolidated joint ventures”.

HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA EXCLUDES UNCONSOLIDATED JOINT VENTURES)
		Contracts (1)						Deliveries						Contract
		Year Ended						Year Ended						Backlog
		October 31,						October 31,						October 31,
			2021		2020	% Change			2021		2020	% Change			2021		2020	% Change
Northeast
(NJ, PA)	Home		243		326	(25.5)%			201		348	(42.2)%			172		130	32.3%
	Dollars	$196,496		$171,181		14.8%		$140,212		$175,627		(20.2)%		$138,396		$82,111		68.5%
	Avg. Price	$808,626		$525,095		54.0%		$697,572		$504,675		38.2%		$804,628		$631,623		27.4%
Mid-Atlantic(2)
(DE, MD, VA, WV)	Home		837		990	(15.5)%			849		755	12.5%			508		557	(8.8)%
	Dollars	$541,684		$510,229		6.2%		$465,432		$402,647		15.6%		$342,189		$291,115		17.5%
	Avg. Price	$647,173		$515,383		25.6%		$548,212		$533,307		2.8%		$673,600		$522,648		28.9%
Midwest
(IL, OH)	Home		782		873	(10.4)%			773		727	6.3%			605		596	1.5%
	Dollars	$273,459		$272,170		0.5%		$248,531		$225,334		10.3%		$194,446		$169,517		14.7%
	Avg. Price	$349,692		$311,764		12.2%		$321,515		$309,950		3.7%		$321,398		$284,424		13.0%
Southeast
(FL, GA, SC)	Home		662		599	10.5%			602		548	9.9%			421		298	41.3%
	Dollars	$320,485		$270,277		18.6%		$276,207		$232,333		18.9%		$221,425		$146,971		50.7%
	Avg. Price	$484,118		$451,214		7.3%		$458,816		$423,965		8.2%		$525,950		$493,191		6.6%
Southwest
(AZ, TX)	Home		2,541		2,636	(3.6)%			2,531		2,233	13.3%			1,076		1,066	0.9%
	Dollars	$1,001,844		$872,630		14.8%		$902,248		$743,301		21.4%		$459,820		$360,225		27.6%
	Avg. Price	$394,271		$331,043		19.1%		$356,479		$332,871		7.1%		$427,342		$337,922		26.5%
West
(CA)	Home		958		1,529	(37.3)%			1,248		1,075	16.1%			465		755	(38.4)%
	Dollars	$553,624		$717,973		(22.9)%		$641,080		$472,786		35.6%		$282,430		$369,887		(23.6)%
	Avg. Price	$577,896		$469,570		23.1%		$513,686		$439,801		16.8%		$607,376		$489,917		24.0%
Consolidated Total
	Home		6,023		6,953	(13.4)%			6,204		5,686	9.1%			3,247		3,402	(4.6)%
	Dollars	$2,887,592		$2,814,460		2.6%		$2,673,710		$2,252,028		18.7%		$1,638,706		$1,419,826		15.4%
	Avg. Price	$479,428		$404,784		18.4%		$430,966		$396,065		8.8%		$504,683		$417,350		20.9%
Unconsolidated Joint Ventures (2, 3)
(excluding KSA JV)	Home		664		739	(10.1)%			589		728	(19.1)%			375		326	15.0%
	Dollars	$407,886		$432,570		(5.7)%		$345,793		$432,602		(20.1)%		$241,619		$184,524		30.9%
	Avg. Price	$614,286		$585,345		4.9%		$587,085		$594,234		(1.2)%		$644,317		$566,025		13.8%
Grand Total
	Home		6,687		7,692	(13.1)%			6,793		6,414	5.9%			3,622		3,728	(2.8)%
	Dollars	$3,295,478		$3,247,030		1.5%		$3,019,503		$2,684,630		12.5%		$1,880,325		$1,604,350		17.2%
	Avg. Price	$492,819		$422,131		16.7%		$444,502		$418,558		6.2%		$519,140		$430,351		20.6%
KSA JV Only
	Home		821		890	(7.8)%			0		0	0.0%			1,913		1,092	75.2%
	Dollars	$128,711		$139,356		(7.6)%		$0		$0		0.0%		$300,384		$171,673		75.0%
	Avg. Price	$156,773		$156,580		0.1%		$0		$0		0.0%		$157,022		$157,210		(0.1)%
DELIVERIES INCLUDE EXTRAS
Notes:
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.
(2) Reflects the reclassification of 14 homes and $7.4 million of contract backlog as of October 31, 2021 from unconsolidated joint ventures to the consolidated Mid-Atlantic segment. This is related to our acquisition of the remaining assets and liabilities from one of our unconsolidated joint ventures which was dissolved during the fourth quarter of fiscal 2021.
(3) Represents home deliveries, home revenues and average prices for our unconsolidated homebuilding joint ventures for the period. We provide this data as a supplement to our consolidated results as an indicator of the volume managed in our unconsolidated homebuilding joint ventures. Our proportionate share of the income or loss of unconsolidated homebuilding and land development joint ventures is reflected as a separate line item in our consolidated financial statements under “Income from unconsolidated joint ventures”.

HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA UNCONSOLIDATED JOINT VENTURES ONLY)
		Contracts (1)						Deliveries						Contract
		Three Months Ended						Three Months Ended						Backlog
		October 31,						October 31,						October 31,
			2021		2020	% Change			2021		2020	% Change			2021		2020	% Change
Northeast
(unconsolidated joint ventures)	Home		14		16	(12.5)%			12		31	(61.3)%			10		18	(44.4)%
(excluding KSA JV)	Dollars	$15,193		$24,384		(37.7)%		$15,503		$31,421		(50.7)%		$10,190		$24,535		(58.5)%
(NJ, PA)	Avg. Price	$1,085,214		$1,524,000		(28.8)%		$1,291,917		$1,013,581		27.5%		$1,019,000		$1,363,056		(25.2)%
Mid-Atlantic (2)
(unconsolidated joint ventures)	Home		50		63	(20.6)%			43		21	104.8%			116		90	28.9%
(DE, MD, VA, WV)	Dollars	$32,304		$33,382		(3.2)%		$25,825		$10,378		148.8%		$76,607		$46,821		63.6%
	Avg. Price	$646,080		$529,873		21.9%		$600,581		$494,190		21.5%		$660,405		$520,233		26.9%
Midwest
(unconsolidated joint ventures)	Home		0		2	(100.0)%			0		2	(100.0)%			0		0	0.0%
(IL, OH)	Dollars	$0		$950		(100.0)%		$0		$950		(100.0)%		$0		$0		0.0%
	Avg. Price	$0		$475,000		(100.0)%		$0		$475,000		(100.0)%		$0		$0		0.0%
Southeast
(unconsolidated joint ventures)	Home		45		89	(49.4)%			65		69	(5.8)%			211		149	41.6%
(FL, GA, SC)	Dollars	$33,563		$49,970		(32.8)%		$33,699		$36,307		(7.2)%		$137,771		$78,528		75.4%
	Avg. Price	$745,844		$561,461		32.8%		$518,446		$526,188		(1.5)%		$652,943		$527,034		23.9%
Southwest
(unconsolidated joint ventures)	Home		0		30	(100.0)%			0		30	(100.0)%			0		46	(100.0)%
(AZ, TX)	Dollars	$0		$18,553		(100.0)%		$0		$19,509		(100.0)%		$0		$26,803		(100.0)%
	Avg. Price	$0		$618,433		(100.0)%		$0		$650,300		(100.0)%		$0		$582,674		(100.0)%
West
(unconsolidated joint ventures)	Home		17		25	(32.0)%			16		10	60.0%			38		23	65.2%
(CA)	Dollars	$8,001		$8,667		(7.7)%		$6,324		$3,478		81.8%		$17,051		$7,837		117.6%
	Avg. Price	$470,647		$346,680		35.8%		$395,250		$347,800		13.6%		$448,711		$340,739		31.7%
Unconsolidated Joint Ventures (2,3)
(excluding KSA JV)	Home		126		225	(44.0)%			136		163	(16.6)%			375		326	15.0%
	Dollars	$89,061		$135,906		(34.5)%		$81,351		$102,043		(20.3)%		$241,619		$184,524		30.9%
	Avg. Price	$706,833		$604,027		17.0%		$598,169		$626,031		(4.5)%		$644,317		$566,025		13.8%
KSA JV Only
	Home		247		326	(24.2)%			0		0	0.0%			1,913		1,092	75.2%
	Dollars	$38,731		$51,110		(24.2)%		$0		$0		0.0%		$300,384		$171,673		75.0%
	Avg. Price	$156,806		$156,779		0.0%		$0		$0		0.0%		$157,022		$157,210		(0.1)%
DELIVERIES INCLUDE EXTRAS
Notes:
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.
(2) Reflects the reclassification of 14 homes and $7.4 million of contract backlog as of October 31, 2021 from unconsolidated joint ventures to the consolidated Mid-Atlantic segment. This is related to our acquisition of the remaining assets and liabilities from one of our unconsolidated joint ventures which was dissolved during the fourth quarter of fiscal 2021. (3) Represents home deliveries, home revenues and average prices for our unconsolidated homebuilding joint ventures for the period. We provide this data as a supplement to our consolidated results as an indicator of the volume managed in our unconsolidated homebuilding joint ventures. Our proportionate share of the income or loss of unconsolidated homebuilding and land development joint ventures is reflected as a separate line item in our consolidated financial statements under “Income from unconsolidated joint ventures”.

HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA UNCONSOLIDATED JOINT VENTURES ONLY)
		Contracts (1)						Deliveries						Contract
		Year Ended						Year Ended						Backlog
		October 31,						October 31,						October 31,
			2021		2020	% Change			2021		2020	% Change			2021		2020	% Change
Northeast
(unconsolidated joint ventures)	Home		51		146	(65.1)%			59		204	(71.1)%			10		18	(44.4)%
(excluding KSA JV)	Dollars	$64,511		$128,526		(49.8)%		$78,856		$167,671		(53.0)%		$10,190		$24,535		(58.5)%
(NJ, PA)	Avg. Price	$1,264,922		$880,315		43.7%		$1,336,542		$821,917		62.6%		$1,019,000		$1,363,056		(25.2)%
Mid-Atlantic (2)
(unconsolidated joint ventures)	Home		140		133	5.3%			151		85	77.6%			116		90	28.9%
(DE, MD, VA, WV)	Dollars	$87,482		$68,605		27.5%		$82,875		$42,759		93.8%		$76,607		$46,821		63.6%
	Avg. Price	$624,871		$515,827		21.1%		$548,841		$503,047		9.1%		$660,405		$520,233		26.9%
Midwest
(unconsolidated joint ventures)	Home		1		13	(92.3)%			1		16	(93.8)%			0		0	0.0%
(IL, OH)	Dollars	$409		$6,059		(93.2)%		$409		$7,344		(94.4)%		$0		$0		0.0%
	Avg. Price	$409,000		$466,077		(12.2)%		$409,000		$459,000		(10.9)%		$0		$0		0.0%
Southeast
(unconsolidated joint ventures)	Home		381		274	39.1%			256		248	3.2%			211		149	41.6%
(FL, GA, SC)	Dollars	$216,513		$140,517		54.1%		$127,093		$122,562		3.7%		$137,771		$78,528		75.4%
	Avg. Price	$568,276		$512,836		10.8%		$496,457		$494,202		0.5%		$652,943		$527,034		23.9%
Southwest
(unconsolidated joint ventures)	Home		4		106	(96.2)%			50		105	(52.4)%			0		46	(100.0)%
(AZ, TX)	Dollars	$3,127		$65,700		(95.2)%		$29,930		$67,215		(55.5)%		$0		$26,803		(100.0)%
	Avg. Price	$781,750		$619,811		26.1%		$598,600		$640,143		(6.5)%		$0		$582,674		(100.0)%
West
(unconsolidated joint ventures)	Home		87		67	29.9%			72		70	2.9%			38		23	65.2%
(CA)	Dollars	$35,844		$23,163		54.7%		$26,630		$25,051		6.3%		$17,051		$7,837		117.6%
	Avg. Price	$412,000		$345,716		19.2%		$369,861		$357,871		3.4%		$448,711		$340,739		31.7%
Unconsolidated Joint Ventures (2,3)
(excluding KSA JV)	Home		664		739	(10.1)%			589		728	(19.1)%			375		326	15.0%
	Dollars	$407,886		$432,570		(5.7)%		$345,793		$432,602		(20.1)%		$241,619		$184,524		30.9%
	Avg. Price	$614,286		$585,345		4.9%		$587,085		$594,234		(1.2)%		$644,317		$566,025		13.8%
KSA JV Only
	Home		821		890	(7.8)%			0		0	0.0%			1,913		1,092	75.2%
	Dollars	$128,711		$139,356		(7.6)%		$0		$0		0.0%		$300,384		$171,673		75.0%
	Avg. Price	$156,773		$156,580		0.1%		$0		$0		0.0%		$157,022		$157,210		(0.1)%
DELIVERIES INCLUDE EXTRAS
Notes:
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.
(2) Reflects the reclassification of 14 homes and $7.4 million of contract backlog as of October 31, 2021 from unconsolidated joint ventures to the consolidated Mid-Atlantic segment. This is related to our acquisition of the remaining assets and liabilities from one of our unconsolidated joint ventures which was dissolved during the fourth quarter of fiscal 2021. (3) Represents home deliveries, home revenues and average prices for our unconsolidated homebuilding joint ventures for the period. We provide this data as a supplement to our consolidated results as an indicator of the volume managed in our unconsolidated homebuilding joint ventures. Our proportionate share of the income or loss of unconsolidated homebuilding and land development joint ventures is reflected as a separate line item in our consolidated financial statements under “Income from unconsolidated joint ventures”.

Contact:	J. Larry Sorsby	Jeffrey T. O’Keefe
	Executive Vice President & CFO	Vice President, Investor Relations
	732-747-7800	732-747-7800

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