RED BANK, NJ -- Hovnanian Enterprises, Inc. reported a net loss of $7.9 million for the three months ended April 30, 2014, compared with net income of $1.3 million, during the same quarter a year ago.
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.
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%.
"We were pleased with the revenue growth, as well as improvements in our gross margin, that we reported for the second quarter of fiscal 2014," stated J. Larry Sorsby, Chief Financial Officer and Executive Vice President. "In order to drive future revenue growth, we have invested in growing our community count. The related general and administrative costs to support these new community openings are hitting our SG&A costs today even though those communities are not yet delivering homes. As a result, our ratio of SG&A to total revenues is higher than normal. As we generate revenues from our increased community count, we will be able to leverage our total SG&A expenses and over time should return to a normalized SG&A ratio of approximately 10%," stated Mr. Sorsby.