Hovnanian Enterprises Receives Continued Listing Standard Notice from NYSE
July 17 2019 - 5:00PM
Hovnanian Enterprises, Inc. (NYSE: HOV) (“Hovnanian” or the
“Company”), a leading national homebuilder, announced today that it
received written notification (the “Notice”) from the New York
Stock Exchange (“NYSE”) that Hovnanian is not in compliance with
the continued listing standard set forth in Section 802.01B of the
NYSE’s Listed Company Manual (“Section 802.01B”) because
Hovnanian’s average global market capitalization was less than $50
million over a consecutive 30 trading-day period and its most
recently reported stockholders’ equity was also less than $50
million. As set forth in the Notice, as of July 11, 2019,
Hovnanian’s 30 trading-day average global market capitalization was
approximately $49.5 million.
In accordance with the NYSE rules, the Company
intends to notify the NYSE within 10 business days of receipt of
the Notice that it intends to submit a plan (the “Plan”) within 45
days from receipt of the Notice advising the NYSE of definitive
action the Company has taken, or is taking, which would bring the
Company into conformity with the NYSE’s continued listed standards
within 18 months of receipt of the Notice. The NYSE will review the
Plan and, within 45 days of its receipt, determine whether the
Company has made a reasonable demonstration of an ability to come
into conformity with Section 802.01B in the 18-month cure period.
If the NYSE accepts the Plan, Hovnanian’s Class A common stock will
continue to be listed and traded on the NYSE during the 18-month
cure period, subject to the Company’s compliance with other
continued listing standards, and the Company will be subject to
quarterly monitoring by the NYSE for compliance with the Plan.
The Notice has no immediate impact on the
listing of Hovnanian’s Class A common stock, which will continue to
trade on the NYSE during the applicable cure period, subject to the
Company’s compliance with the other listing requirements of the
NYSE. The Notice does not affect the ongoing business operations of
Hovnanian, compliance with its debt instruments or its reporting
requirements under the rules and regulations of the SEC.
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 names K. Hovnanian® Homes and Brighton 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
IR@khov.com or sign up at http://www.khov.com.
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) adverse weather and other
environmental conditions and natural disasters; (3) high leverage
and restrictions on the Company’s operations and activities imposed
by the agreements governing the Company’s outstanding indebtedness;
(4) availability and terms of financing to the Company; (5) the
Company’s sources of liquidity; (6) changes in credit ratings; (7)
the seasonality of the Company’s business; (8) the availability and
cost of suitable land and improved lots and sufficient liquidity to
invest in such land and lots; (9) shortages in, and price
fluctuations of, raw materials and labor; (10) reliance on, and the
performance of, subcontractors; (11) 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; (12) fluctuations in
interest rates and the availability of mortgage financing; (13)
increases in cancellations of agreements of sale; (14) changes in
tax laws affecting the after-tax costs of owning a home; (15)
operations through unconsolidated joint ventures with third
parties; (16) government regulation, including regulations
concerning development of land, the home building, sales and
customer financing processes, tax laws and the environment; (17)
legal claims brought against us and not resolved in our favor, such
as product liability litigation, warranty claims and claims made by
mortgage investors; (18) levels of competition; (19) successful
identification and integration of acquisitions; (20) significant
influence of the Company’s controlling stockholders; (21)
availability of net operating loss carryforwards; (22) utility
shortages and outages or rate fluctuations; (23) 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; (24)
geopolitical risks, terrorist acts and other acts of war; (25) loss
of key management personnel or failure to attract qualified
personnel; (26) information technology failures and data security
breaches; (27) negative publicity; and (28) 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, 2018 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.
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Contact: |
J. Larry Sorsby |
Jeffrey T. O’Keefe |
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Executive Vice President & CFO |
Vice President, Investor Relations |
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732-747-7800 |
732-747-7800 |
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