Good morning and thank you for joining us today on the Hovnanian Enterprises’ Fiscal 2014 Second Quarter Earnings Conference Call. An archive of the webcast will be available after the completion of the call and run for 12 months. This conference is being recorded for rebroadcast and all participants are currently in the listen-only mode. Management will make some opening remarks about the second quarter results and then open up the line for questions. The Company will also be webcasting a slide presentation, along with the opening comments from management. The slides are available on the Investors page of the Company’s Web site at www.khov.com. Those listeners, who would like to follow along, should log onto the Web site at this time. Before we begin, I would like to turn the call over to, Jeff O’Keefe, Vice President, Investor Relations. Jeff, please go ahead. Jeff O’Keefe: Thank you, operator. And thank you all for participating in this morning’s call to review the results for our second quarter ended April 30, 2014. Before we get started, I would like to quickly read through our forward-looking statements. All statements in this conference call that are not historical facts should be considered as forward-looking statements. Such statements involve known and unknown risks and 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. 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. Such risks, uncertainties and other factors include but are not limited to changes in general and local economic, industry and business conditions and impacts…

Thanks Jeff. And thank you all for participating in this morning’s call to review the results of our second quarter ended April 30, 2014. Let’s start with Slide Number 3, as we show on the slide most of our operating metrics improved year-over-year. The upper left hand corner of the slide you can see that our total revenues increased 6% year-over-year from the second quarter of fiscal 2013. Moving to the upper right hand portion of the slide, our homebuilding gross margin increased 130 basis points year-over-year to 20.2%. Continuing clock wise in the lower left hand -- excuse me lower right hand quadrant we show that the dollar value of our backlog increased 21% year-over-year. And the lower left hand quadrant we show that interest as a percentage of total revenues was flat compared to last year’s second quarter. We also show a negative comparison with SG&A ratios increasing this quarter compared to last year. Let me try to explain what happened with SG&A. Growing the top-line is a critical component of our strategy to improving our financial performance. We’ve invested in that growth both from a people perspective with a 16% year-over-year increase in staffing levels and a land perspective with eight consecutive quarters of growth in total loss control. As we grow community account, there’s often a lag before we see the efficiency affect growth has in our SG&A ratio. This lag occurs because we incurred SG&A expenses for acquiring, planning and opening the new communities well before we have any new deliveries or revenues from those new communities, this is specifically true as we are buying more undeveloped land. This is a position we find ourselves in today and it’s causing our SG&A ratio to be higher than our normal range. Turning to Slide 4 we…

Thanks Ara. Let me start with a discussion about our gross margin trends. Slide 13 shows that we have reported year-over-year improvements in gross margin for the past nine quarters. During the second quarter of fiscal 2014, we once again achieved gross margin percentages in excess of 20%, with the slower sales pace and the decline in our ability to increase sales prices the cost pressures we were feeling from trade partners in 2013 has evaded. Unfortunately due to periodic labor shortage in many of our markets and the lingering effect of a harsh winter weather, we have seen our construction cycle times lengthen. Turning to Slide 14, we show our gross margin percentage going back to 2000. If you focus on the left hand part of this slide in 2000 and 2001 near the boom and the burst years, our gross margin was between 20% and 21%. We would consider this to be a normal gross margin range for our Company. Even though our gross margin increased year-over-year during the first half of fiscal 2014 assuming no changes in current market conditions we expect our gross margin for our full fiscal 2014 year to be similar to the 20.1% we reported in all of fiscal 2013. This takes into account the increased concessions that we offered during our Big Deal Days sales promotion and the sales incentives we continue to offer today across many of our markets. Turning to Slide 15, during the second quarter of fiscal 2014, while our sequential SG&A expenses remain stable, our total SG&A expense increased year-over-year to 62 million compared to 52 million in the second quarter of fiscal 2013. This increase in SG&A expense is partially reflective of the investments we are making to find and purchase new land parcels and grow our…

Thanks Larry. We certainly felt the impact of an unusually harsh winter weather in many of our geographies during the beginning of fiscal 2014. In addition the subcontractor shortages we have spoken about are still prevalent and construction cycle times have lent in as Larry mentioned earlier. These two factors combined with a slower sales pace at the end of last year led to disappointing deliveries in the first half of fiscal ’14. Furthermore the higher levels of SG&A dollars associated with community count growth combined with the lower delivery levels resulted in a weaker first half of the year than we expected. However we had substantial improvements in many financial metrics in our second quarter. We’re very pleased with the 130 basis points improvement in our gross margin, the 15% growth in dollar value of net contracts, and the 21% growth in dollar value of contract backlog. These improvements give us confidence for continued growth in revenues and profitability during the second half of 2014. Looking further into the future, the expected increases in our community count will set us up for continued top-line growth and more importantly will allow us to reach a more critical mass that will return us to a sustainable profitability. That concludes our formal remarks and we’ll be happy to open it up for questions and answers now.

and:

The Company will now answer questions so that everyone has an opportunity to ask a question. Participants will be limited to one question and one follow-up. After which they will have to get back in the queue to ask another question. At this time we will open the call to all questions. (Operator Instructions) Your first question comes from the line of David Goldberg with UBS, please proceed.

Thanks. Good morning guys. UBS: Thanks. Good morning guys.

Good morning.

My first question was actually on the direct interest expense in the quarter and kind of how we should think about direct interest expense on a go forward basis. And really the question comes from obviously there is some leverage on this number. But I’m just thinking about the fact that active assets have been going up, inventory has been going up faster, and debts been going up, community count has been going up, you have been unmothballing communities. But it seems like the direct interest expense, the absolute dollar level isn’t changing very much. And I’m just wondering as we go forward how should we be thinking about that and how that’s going to affect the business and profitability of business, I guess? UBS: My first question was actually on the direct interest expense in the quarter and kind of how we should think about direct interest expense on a go forward basis. And really the question comes from obviously there is some leverage on this number. But I’m just thinking about the fact that active assets have been going up, inventory has been going up faster, and debts been going up, community count has been going up, you have been unmothballing communities. But it seems like the direct interest expense, the absolute dollar level isn’t changing very much. And I’m just wondering as we go forward how should we be thinking about that and how that’s going to affect the business and profitability of business, I guess?

I think a couple of things impact direct interest and you have described them all well I mean, it depends on what active inventory we have that we can capitalize interest on, and as the inventory grows we can capitalize more. But at the same -- this particular quarter and this year you are seeing that other interest just kind of stayed flat to the prior year because we actually have more interest incurred with the additional debt that we issued in January. So I think overtime you should expect to see it go down assuming we continue to grow inventory and have more active communities, and don’t add any additional interests. In addition to the 150 million of notes we issues in January, we have also added in our non-recourse mortgage balance you will see on the balance sheet, about 30 million which also has interest that has to be expensed or capitalized. So our interest incurred is going up which is why it is kind of staying flat on the other interest lines. But your assumption, I think is right that overtime assuming all else stays the same and inventory goes up, we should start to see that number go down.

Thank you, and then, just as a follow-up, I was wondering if we could talk about cycle times in the commentary, that cycle times have extended a little bit and then reconciling that with the concept the inventory turnover overtime is going to go back towards the kind of two times that we were at before the last up cycle, should we be thinking about that as -- you guys think that kind of the moving cycle times is kind of short-term and labor is adjusting, so that cycle times will come back down or as the inventory turnover the acceleration is not going to come more from capital allocation and capital efficiency in terms of land and working capital efficiency. UBS: Thank you, and then, just as a follow-up, I was wondering if we could talk about cycle times in the commentary, that cycle times have extended a little bit and then reconciling that with the concept the inventory turnover overtime is going to go back towards the kind of two times that we were at before the last up cycle, should we be thinking about that as -- you guys think that kind of the moving cycle times is kind of short-term and labor is adjusting, so that cycle times will come back down or as the inventory turnover the acceleration is not going to come more from capital allocation and capital efficiency in terms of land and working capital efficiency.

That’s a good question, David, but generally construction times and cycle times are unusually high right now. And overtime as the subcontractor labor market balances more, we would expect construction cycle times to get more normalized. Without a doubt, potential of decreasing construction cycle times, by several weeks or a month would not be odd at all it would just get us back to normal. At the same time that construction cycle time should be getting back to normal, we’re hoping that sales pace per community also gradually gets back to normal. That’s a key driver of inventory as well. And as you see sales pace per community get back to normal levels, I think that will definitely help us get back to our more normalized higher inventory turns.

That is very helpful thank you Ara thank you everybody. UBS: That is very helpful thank you Ara thank you everybody.

Your next question comes from the line of Nishu Sood with Deutsche Bank, please proceed.

Thank you, first question I wanted to ask was on the gross margin. You had indicated earlier in the quarter that you’re launching the international sales promotions including some of the incentives, for example, but your gross margin -- and I believe so the incentives where related to spec homes as well. So the gross margin improved by, I think 140 basis points sequentially, which isn’t really that far below the sequential gross margin improvement you’d last year. So you did give the more cautious guidance on the gross margin for the remainder of the year. So I was just wondering how all those pieces fit together, when we’ve seen the impact of the sales promotion have been increasing in fact it is already or is it more over back half of the year effect? Deutsche Bank: Thank you, first question I wanted to ask was on the gross margin. You had indicated earlier in the quarter that you’re launching the international sales promotions including some of the incentives, for example, but your gross margin -- and I believe so the incentives where related to spec homes as well. So the gross margin improved by, I think 140 basis points sequentially, which isn’t really that far below the sequential gross margin improvement you’d last year. So you did give the more cautious guidance on the gross margin for the remainder of the year. So I was just wondering how all those pieces fit together, when we’ve seen the impact of the sales promotion have been increasing in fact it is already or is it more over back half of the year effect?

Yes I think you did see some in the second quarter as you mentioned, we did primarily focuses, and started unsold the inventory and some of those homes did close during the second quarter. But as we mentioned last quarter during the call that we are going to be fairly modest increases in incentives and even a quarter ago we told that we expected to have similar gross margins for the full year of ’14 after taking into account the expected of our big deal day extra incentives we’re staying true to that projection for the full year even though the first half of the year both quarters both the first quarter and the second quarter were positive compared to the same quarters a year ago so most of the impact of big deal days will be in the latter half of this fiscal year but in spite of the slight increase in incentives that will be coming through for the full year our gross margins we still think are going to be comparable to what we saw for the full fiscal ’13 year.

Okay, great. And next question I wanted to ask was on the SG&A, you mentioned that the increase is partly related to increasing community counts. If we were to think about SG&A intensity per community is that changing as we go along here through the recovery as well and what I mean by that is it’s coming more expensive to open new communities is there more competition there is more communities being open generally so to get the attention or to have the right levels of staffing if we could think about SG&A necessity has it been changing as we go along here? Deutsche Bank: Okay, great. And next question I wanted to ask was on the SG&A, you mentioned that the increase is partly related to increasing community counts. If we were to think about SG&A intensity per community is that changing as we go along here through the recovery as well and what I mean by that is it’s coming more expensive to open new communities is there more competition there is more communities being open generally so to get the attention or to have the right levels of staffing if we could think about SG&A necessity has it been changing as we go along here?

Yes. Well, first of all, and I alluded to this in my comments. We are seeing more of our new land acquisitions as undeveloped and that means we do have a little bit more indirect expense it was the construction overhead associated with developing those lots. That being said if you go back to our normalized SG&A levels at 10% that has probably a more similar percentage of undeveloped lots we had a nice period of more developed lots but overall I wouldn’t see a dramatic increase in community startup. It just hit us that we have as you saw from the quarter we have a particularly large quarter of new net land additions and it hit us at the same quarter as we have some lower deliveries so you just felt the effect more pronounced early in the year. On the whole for the full year we’d expect our SG&A levels to be similar percentage wise to last year and then we expect to make more progress in reducing those in the coming years right after that.

Okay, got it. Thank you. Deutsche Bank: Okay, got it. Thank you.

Our next question comes from the line of Ivy Zelman with Zelman & Associates. Please proceed.

Good morning guys. This is Alan on for Ivy. And my first question on the order pace, curious when you look at the volatility on the monthly results the strong spike in March followed by the choppiness in April and May as you described. When you compare your results versus some of your competitors and made the broader industry. Would you say that your monthly order trends and you think are fairly indicative of what the broader industry is seeing or was there some added volatility as a result of the incentives there at sales campaign that we have and then I have a follow up on that as well. Zelman & Associates: Good morning guys. This is Alan on for Ivy. And my first question on the order pace, curious when you look at the volatility on the monthly results the strong spike in March followed by the choppiness in April and May as you described. When you compare your results versus some of your competitors and made the broader industry. Would you say that your monthly order trends and you think are fairly indicative of what the broader industry is seeing or was there some added volatility as a result of the incentives there at sales campaign that we have and then I have a follow up on that as well.

This is anecdotal obviously because we don’t compare monthly data and not all of our peers give us granular inside as we do. But anecdotally I would say that March was a better environment for most notwithstanding the fact that we happen to have our promotion I think it was a stronger sales environment for the industry. I’d say in general everybody has been experiencing the ups and downs of the choppiness of the sales environment.

Okay. And my second question on our FHA shares continuing to come down quite a bit and I was curious if you can comment a little bit on that whether that’s more a function of buyers choosing to go conforming given the lower cost and the increases we’ve seen in premiums on FHA over the last several years or whether you think that’s more mix driven and that buyer simply is no longer active in the market today? Zelman & Associates: Okay. And my second question on our FHA shares continuing to come down quite a bit and I was curious if you can comment a little bit on that whether that’s more a function of buyers choosing to go conforming given the lower cost and the increases we’ve seen in premiums on FHA over the last several years or whether you think that’s more mix driven and that buyer simply is no longer active in the market today?

I think it’s purely a function of the increases in the MIP premium you’ve seen on the FHA loans as FHA costs have increased it’s actually become more affordable to do conforming Fannie or conforming Freddie Mac. So those buyers that could qualify for Fannie or Freddie have switched to that and we’ve seen a corresponding increase in that percentage of conforming originations during that same period of time so I think it is hugely weighted towards the disadvantage higher cost of FHA MIP premiums.

And alongside that have you seen any significant changes in underwriting standards or guidelines on the conforming side have you seen some using that’s also help shift that buyer to the conforming market. Zelman & Associates: And alongside that have you seen any significant changes in underwriting standards or guidelines on the conforming side have you seen some using that’s also help shift that buyer to the conforming market.

Very recently recent months we’ve seen some of the cut and overlays been removed and that’s been helpful but it’s only been very recent that we’ve seen that happen. So I wouldn’t give that credit for why people have shifted away from FHA and VA since 2010. But I will say it’s an incremental positive that makes the conforming conventional even more enticing because of the incremental improvements and the ability to qualify borrowers.

Great. Thanks a lot. Zelman & Associates: Great. Thanks a lot.

Your next question comes from the line of Michael Rehaut with JPMorgan. Please proceed.

Good morning. It’s actually Jason Marcus in for Mike. First question has to do with traffic trends, I was wondering if you could discuss what you are seeing I guess both in terms of foot traffic and wet traffic over the last several months and into May and if you could also kind of discuss that in really more context as well? JPMorgan: Good morning. It’s actually Jason Marcus in for Mike. First question has to do with traffic trends, I was wondering if you could discuss what you are seeing I guess both in terms of foot traffic and wet traffic over the last several months and into May and if you could also kind of discuss that in really more context as well?

I don’t have the regional numbers in front of me but the traffic on a year-over-year basis has been down a bit this spring as compared to the last spring in the vicinity of 8% of something like that less traffic than we saw a year ago on a per community basis. So, we have seen a little slowdown in traffic but our conversion rate contrary has improved, so that’s kind of an offset but I apologize that I just don’t have the traffic data by region in front.

Okay. Next question regarding the land market, can you just give a little bit of color in terms of what you are seeing in terms of land competition and price hand over the last quarter of so and how much inflation did you see run through the P&L during the quarter? JPMorgan: Okay. Next question regarding the land market, can you just give a little bit of color in terms of what you are seeing in terms of land competition and price hand over the last quarter of so and how much inflation did you see run through the P&L during the quarter?

I would say over the last quarter land pricing has been a little more stable kind of reflecting the fact that the recovery is taking a little smoother pass right now. And nonetheless, it remains as it always is a generally competitive market but from the bigger perspective though if you look at the previous normal markets, a lot of the competitors are out of the market. In fact if you went back to the top 50 homebuilders list from 2005, almost a third are out of business, so that’s generally helpful. There are some fewer numbers of builders out there to compete with particularly in the private homebuilding sector but generally speaking everyone is anxious to refill their pipeline and it’s a healthy competitive market on land.

Thanks. JPMorgan: Thanks.

Your next question comes from the line of Eli Hackel with Goldman Sachs. Please proceed.

Thanks. Good morning. In relation to absorptions for most companies have been declining as you pointed out. Do you think the industry is may be bringing on too many communities too fast if absorptions are still not at normal levels? Goldman Sachs: Thanks. Good morning. In relation to absorptions for most companies have been declining as you pointed out. Do you think the industry is may be bringing on too many communities too fast if absorptions are still not at normal levels? Brad O’Connor: I’ll take a stab at that and Larry you may want to echo in but no I don’t believe that that is the case at all. I think it’s logical at this point in a cycle we are still in the very early stages that builders would be trying to increase their community count. It’s one of the few things that we can do to directly control our ability to grow. The other factor is growing absorptions per community which is more a function I think of the overall U.S. economy improving, job being created. As Ara mentioned earlier in the call, in markets where we are seeing job growth so from Houston homes are kind of flied off the shelf there and we certainly have confidence that U.S. economy is going to continue to grow, create jobs and we want to have the communities, so not only do we get growth discovered increased community count but also because we will start to have higher absorptions per community. And the overall positive leverage that’s created from increasing sales per community is huge and dramatic from a P&L perspective and we are very convinced that over time that’s going to occur and I suspect that our peers believe that as well.

Just again putting the overall market into perspective obviously the market has improved dramatically in terms of total housing starts. We hit a historic low in this nation at trough 500,000 starts per year I mean we haven’t seen that since World War II. It has improved dramatically and we are now close to a 1 million starts per year and while that’s dramatically better than trough, it’s well below average. Forget about the pick we went through, the average over the last five of the six last decades is about 1.5 million starts. So, we are way below average levels of housing production and therefore there should be pent-up demand. You don’t want to be chasing the curve in terms of land purchases. We have grown our company over the last 50 plus years and one of the important strategies is as we are in a recovery to make sure we are ahead of the game in the curve in land that propelled us as, in each of the last housing cycles significantly and we think it’s important to position ourselves as this recovery continues to unfold in this cycle as well.

Great. And then just one quick one, Larry you mentioned I think some of the overlays being removed, I was curious maybe most of several what they were and what do you think driving out was it potentially know our feature what you think it could have been behind those factors? Goldman Sachs: Great. And then just one quick one, Larry you mentioned I think some of the overlays being removed, I was curious maybe most of several what they were and what do you think driving out was it potentially know our feature what you think it could have been behind those factors?

You know I don’t -- we talked about this with ahead of our mortgage cap maybe other day and he kind of cited three or four things that had been loosen I just don’t recall them off the top of my head, they are not huge changes but they are incremental loosening and credit guideline, I just don’t have to remember specifically what they were.

Overall though I think it is fair to say that the current FHA are director has a more positive attitude toward housing and the need to return to rational lending then it’s predecessors and I think that’s helpful thing. Brad O’Connor: I think also what’s happening in the regional, as credit overlays are getting loosened is that the aggregators of Wells Fargo’s and Chase’s of the world who have put those credit overlays in place have seen their business from the mortgage origination side slow, because of the refinance slowing and therefore they are hungry for business. I think it’s really, that is as much as anything else has been driving.

Great. Thank you very much. Goldman Sachs: Great. Thank you very much.

The next question comes from the line of Dan Oppenheim with Credit Suisse. Please proceed.

Thanks very much. Just wondering if you can talk little bit about what you’re doing in terms of the plans for opening new communities in success with the recently open communities given the lower absorption that’s occurring right now. Are you doing more in terms of marketing, more in terms of incentives just in craziness as they are opening those, I am just wondering how the result have been on this new look communities versus your expectation? Credit Suisse: Thanks very much. Just wondering if you can talk little bit about what you’re doing in terms of the plans for opening new communities in success with the recently open communities given the lower absorption that’s occurring right now. Are you doing more in terms of marketing, more in terms of incentives just in craziness as they are opening those, I am just wondering how the result have been on this new look communities versus your expectation?

Well, first of fall I think our advertising has gone up a little bit and that would reflect in our most recent quarter, but in general our strategy is for all of our land acquisition to assume the current incurring sales space as well as sales price. So in some time depending on the lead time, we buy a property assuming sales assumption of read a month and the market but we’re hoping is that 3.6 a month and obviously we enjoy that positive variants and other times, we buy when a 3.6 and its close to 3 and we’re disappointed with slightly lower returns in that case. But on the haul, I think that we speak to the discipline of using then current absorptions we can’t get too hurt and we’re constantly in the market, constantly buying, so correcting to the current market conditions. Overall I wouldn’t say we’re doing anything dramatically, dramatically different in terms of preparation or incentive in openings.

Great. Thank you. Credit Suisse: Great. Thank you.

Your next question comes from the line of Adam Rudiger with Wells Fargo Securities. Please proceed.

Adam? Okay. Go to the next questioner.

Your next question comes from the line of Susan Berliner with JPMorgan. Please proceed.

Thank you. Good morning. JPMorgan: Thank you. Good morning.

Good morning Susan.

Good morning. I want to talk about I guess a little, hoping to get a little bit more color regionally. And I guess there -- I guess more on the down side which market are you seeing little spark? And I think regionally for you guys, I know grew Arizona and Texas together so I know Ara you already talked about, Houston being really strong. Can you talk about some of the other markets where there continues to be slowdown? JPMorgan: Good morning. I want to talk about I guess a little, hoping to get a little bit more color regionally. And I guess there -- I guess more on the down side which market are you seeing little spark? And I think regionally for you guys, I know grew Arizona and Texas together so I know Ara you already talked about, Houston being really strong. Can you talk about some of the other markets where there continues to be slowdown?

Yes. So slowdown is going to be a relative term in Phoenix and I think this is well being discuss in the industry it got white hot last year for about the first half of the year, it’s cooled but I hardly called it slow, it’s still a very solid market and we’re performing well there. But it is slow relative to the white hot environment that we have there, last year in the first half of the year. Market that’s been a little slower and disappointing has been the Ohio market, although in recent month, that just recently there seems to be picking up a little bit on the per community side. Other than that, I can’t say that there’s been a noticeable high and low way, I mentioned those have been a bit slower. I mentioned Houston and particular the Silicon Valley part of Northern California is being a little higher, but I don’t figure any other standouts.

And then just a follow-up I guess with regards to your orders and it look like the Mid-Atlantic region the orders were up a lot but I was curious as to why the average price is down, I don’t know if that was mix related? JPMorgan: And then just a follow-up I guess with regards to your orders and it look like the Mid-Atlantic region the orders were up a lot but I was curious as to why the average price is down, I don’t know if that was mix related?

That’s primarily mix related in terms of we have a broad products array, it could be just with the mix of the types of products that were in there, it could just be the community themselves or in different areas, the different selling prices. I wouldn’t read too much into that.

Okay great, thanks so much. JPMorgan: Okay great, thanks so much.

Your next question comes from the line of Alex Barron from Housing Research Center. Please proceed.

Thanks, good morning guys. I wanted to see if we could focus a little bit on the, on your option lots and now we see there’s a big dump in the Southeast. Is that in Florida, or is that one in the Carolinas and is there like just a few large communities that you guys are looking at or are they just a lot of more average type communities?

Thanks, good morning guys. I wanted to see if we could focus a little bit on the, on your option lots and now we see there’s a big dump in the Southeast. Is that in Florida, or is that one in the Carolinas and is there like just a few large communities that you guys are looking at or are they just a lot of more average type communities?

We have made a little more progress in the Southeast and it’s both a mix of more communities and perhaps a little more size, I haven’t really focused on which of the two is driving it a little bit more but we are definitely focusing on the Southeast area.

And that includes both Florida and the Carolinas?

And that includes both Florida and the Carolinas?

Yes, it does, as well as the coastal areas of Georgia which we kind of manage the coastal areas of Georgia, North Carolina and South Carolina from one operation?

Alex we just kind of done some of the detail and just eyeballing it, it looks like it’s pretty evenly split between the Carolinas and Florida in terms of the option lots we did during the quarter.

Got it, and then in terms of the, going back to the previous question, orders in the Mid Atlantic. I mean it seemed like a pretty sizeable jump was there any kind of special incentive that was different that you did throughout there or what you think drove the jump, the huge jump sequentially and year-over-year?

Got it, and then in terms of the, going back to the previous question, orders in the Mid Atlantic. I mean it seemed like a pretty sizeable jump was there any kind of special incentive that was different that you did throughout there or what you think drove the jump, the huge jump sequentially and year-over-year?

There wasn’t anything special that we did in the mid Atlantic vis-à-vis big deal days, we did a national campaign and clearly the campaign was customized for each market but the mid Atlantic didn’t do anything significantly different than we saw in other parts of the country.

Okay, thanks Larry.

Okay, thanks Larry.

(Operator Instructions) Your next question comes from the line of Adam Rudiger with Wells Fargo Securities. Please proceed.

Can you hear me this time?

Can you hear me this time?

Yes we can.

I know in response to one of your earlier questions you suggested that you didn’t think your March improvement was so different from the market but I feel like your monthly orders per community for the year so far, that was the only month that you didn’t have a double digit decline, so that kind of suggests to me at least that the big deal days were successful, so I was wondering. My question was twofold, one what were the promotions that seemed to work the best and then two, if that’s what drove the improvement in March does that change your guys perspective at all on future promotions this year.

I know in response to one of your earlier questions you suggested that you didn’t think your March improvement was so different from the market but I feel like your monthly orders per community for the year so far, that was the only month that you didn’t have a double digit decline, so that kind of suggests to me at least that the big deal days were successful, so I was wondering. My question was twofold, one what were the promotions that seemed to work the best and then two, if that’s what drove the improvement in March does that change your guys perspective at all on future promotions this year.

You know Adam, I’d like to take credit for the really strong March as you know this great promotion but I just think it was coincident with a good month in the market. You know this little choppy environments means there’re just good periods and bad periods and frankly it’s hard to correlate what brings a couple of weeks of strong sales. I tried to look at the news and say, oh you know, that’s why we had a great week this week, and then the next week we had a slower week and I try to understand it. It’s hard to draw a correlation but I’d say we just had good timing of introducing the promotion to a good market. The promotion was not super significant, it was really focused only on specs, started unsold, which are generally not a huge part of our sales, but just really the excitement and electricity if you will of a promotion generates a good buzz in the sales communities, charges up the salespeople, and we have good sales in all of our homes, including those that weren’t covered by the promotion. So generally speaking I don’t think we have any immediate plans to repeat a promotion. The last nationwide promotion we did was four or five years ago that was successful then we decided not to repeat it and we just thought this would be a good time in the market. Now each, other than these national promotions, each division and even each community decides based on its local environment when to do a particular promotion and there’s typically something ongoing somewhere in the country at any given point of time.

But one thing to just kind of reiterate while we believe that it was as much the market and March as anything else Adam was, we actually continued the big deal days promotion into April and April was down year over year, so I just think as Ara said we generated a lot of excitement both internally with our sales team and externally with prospects and it worked in March to some degree but I think we would, if you just asked us, because we don’t see everybody else’s monthly results, we’d say it’s kind of weighted, it was just a good market in March, and we just have a choppy kind of market situation from one month to the next.

Okay, that’s all I had, thanks for taking the question.

Okay, that’s all I had, thanks for taking the question.

That concludes our Q&A portion. I will now like to turn the call back over to Mr. Ara Hovnanian for closing remarks, please proceed.

Thank you very much, as we said there were a lot of positive metrics in the quarter and some things we were not as pleased with, but overall we’re pleased with the overall market condition and we look forward to reporting some continued improvements in the quarters to come. Thank you very much.

That concludes the conference call for today. Thank you for participating and have a nice day, all parties may now disconnect.