Page 1

HOVNANIAN ENTERPRISES , INC . Contact : J. Larry Sorsby Executive Vice President & CFO 732-747-7800 News Release Jeffrey T. O'Keefe Vice President , Investor Relations 732-747-7800 HOVNANIAN ENTERPRISES REPORTS FISCAL 2021 FIRST QUARTER RESULTS $ 27 Million Year - over - Year Improvement in Pretax Income First Quarter Gross Margin Percentage Increased 440 Basis Points Year - over - Year 85 % Year - over - Year Increase in Consolidated Backlog Dollars to $ 1.67 Billion 51 % Year - over - Year Increase in Land and Land Development Spend MATAWAN , NJ , March 2 , 2021 – Hovnanian Enterprises , Inc. ( NYSE : HOV ) , a leading national homebuilder , reported results for its fiscal first quarter ended January 31 , 2021 . RESULTS FOR THE FIRST QUARTER ENDED JANUARY 31 , 2021 : • • • • • • Total revenues increased 16.3 % to $ 574.7 million in the first quarter of fiscal 2021 , compared with $ 494.1 million in the same quarter of the prior year . Homebuilding gross margin percentage , after cost of sales interest expense and land charges , increased 440 basis points to 17.3 % for the three months ended January 31 , 2021 compared with 12.9 % during the same period a year ago . Homebuilding gross margin percentage , before cost of sales interest expense and land charges , increased 340 basis points to 20.7 % during the fiscal 2021 first quarter compared with 17.3 % in last year's first quarter . Total SG & A was $ 63.7 million , or 11.1 % of total revenues , in the fiscal 2021 first quarter compared with $ 60.4 million , or 12.2 % of total revenues , in the previous year's first quarter . Total interest expense was $ 41.1 million for the first quarter of fiscal 2021 compared with $ 43.1 million during the first quarter of fiscal 2020 . Income from unconsolidated joint ventures was $ 1.9 million for the first quarter ended January 31 , 2021 compared with $ 1.5 million in the fiscal 2020 first quarter . Income before income taxes for the first quarter of fiscal 2021 was $ 19.6 million compared with a loss of $ 7.4 million in the first quarter of the prior fiscal year . Adjusted pretax income , which is income before income taxes excluding land - related charges and gain on extinguishment of debt , was $ 21.5 million in the first quarter of fiscal 2021 compared with a loss before these items of $ 14.1 million in the fiscal 2020 first quarter . 1