said its third-quarter loss widened and revenue tumbled from a year earlier as the company continued to struggle with the decline in the housing sector.
For the third quarter ended July 31, Hovnanian's revenue of $716.5 million dropped from $1.1 billion in the same quarter a year ago. The New Jersey-based homebuilder lost $202.5 million, or $2.67 a share, compared with a loss of $80.5 million, or $1.27 a share, in the year-earlier period.
Deliveries, excluding unconsolidated joint ventures, slid 31% to 2,185 homes in the quarter. The number of net contracts, excluding joint ventures, declined 38% to 1,584 homes. The cancellation rate was 32%, a bit better than last year's 35%.
Pretax land-related charges during the quarter totaled $111.7 million. Excluding those costs, the pretax loss was $87.7 million.
Hovnanian had positive cash flow of $192.2 million, with $94.7 million from a previously anticipated federal tax refund received in July.
"As we continue to compete against record foreclosures, higher than normal levels of resale listings and poor consumer confidence, the housing market remains challenging," said Ara Hovnanian, president and CEO of the company, in a statement. "Despite disappointing operating losses, we successfully generated cash during the third quarter and remain on track to end our fiscal year with approximately $800 million of homebuilding cash."
Shares of Hovnanian fell 2.7% in after-hours trading Wednesday.
This article was written by a staff member of TheStreet.com.