Business Briefs: Hovnanian Homes comes to Gilroy

Business Briefs: Ellington hires new staff member

K. Hovnanian Homes has acquired 43 homesites and the three model
homes at Mesa Ridge in Gilroy, a new neighborhood of single-family
homes near the crossing of Highways 101 and 152 in Gilroy.
K. Hovnanian Homes has acquired 43 homesites and the three model homes at Mesa Ridge in Gilroy, a new neighborhood of single-family homes near the crossing of Highways 101 and 152 in Gilroy. The builder is updating the existing model homes now with plans for a grand opening celebration in September. The neighborhood features three distinct home designs ranging from approximately 2,869 to 3,334 square feet. All of the homes are two-story with two-car garages. Two of the home designs can be built with up to five bedrooms. The community features two neighborhood parks and more than 20 acres of designated open space.

K. Hovnanian Homes is the sixth largest homebuilder in the nation. The company’s Northern California division received a maximum five stars for their warranty and customer service, according to J.D. Power’s New Home Builder Customer Satisfaction Study. Founded in 1959 by the late Kevork S. Hovnanian, the company sells homes in 18 states and the District of Columbia and reported $437.4 million in total revenue in the 2009 fiscal year. K. Hovnanian Homes builds communities that include single-family homes, townhomes and garden homes. The company is known for its expertise in community redevelopment and environmental rehabilitation.

Details: (866) 930-3441 or www.khov.com.

Coast reports revenue growth

The Coast Distribution System, Inc. reported financial results for the second quarter and six months ended June 30, highlighted by revenue growth in both the United States and Canada. Coast, an aftermarket supplier based in Morgan Hill for recreational vehicle parts and assessories, reported net income of $1,184,000, or $.26 per diluted share, for the second quarter of 2010 as compared to net income of $1,162,000, or $.26 per diluted share for the second quarter of 2009. A small increase in gross profit led to a $200,000 increase in pretax income, which was offset by a higher effective tax rate. Net sales increased by 4.6 percent, to $34.6 million in the second quarter of 2010, as compared to $33.1 million in the same quarter of 2009.

Net sales increased by 4.6%, to $34.6 million in the second quarter of 2010, as compared to $33.1 million in the same quarter of 2009. Sales increased in both the Company’s United States and Canadian operations. The improvement in sales was attributable to a slight firming of demand for the Company’s products, coupled with historically low inventory levels maintained by Coast’s aftermarket customers.

On the balance sheet, accounts receivable increased modestly to $14.4 million from $14.2 million at June 30, 2009, as a result of increased sales compared to the prior year. Inventories at June 30, 2010 were $29.8 million, an increase of $5.1 million compared with $24.7 million a year earlier, which was attributable to the Company’s plan to optimize inventory levels to improve customer service in season. Given the increased levels of inventory, the Company’s revolving credit facility increased to $13.3 million at June 30, 2010, from $11.4 million at June 30, 2009.

“Our financial results for the second quarter reflected slight improvements in our market share, as well as our ongoing efforts to control costs and operate efficiently,” said Coast’s Chief Executive Officer Jim Musbach. “Although our progress was tempered by continued uncertainty in our markets over the last few months, we continue to focus on our objective of providing more of our branded products to our customers. Year to date, approximately 3 percent of Coast’s sales were derived from the products that we have designed, developed and sourced during the last decade.”

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