Three Months Ended

July 31,

Nine Months Ended

July 31,

(In thousands, except per share data)

2015

2014

2015

2014

Numerator:

Net (loss) earnings attributable to Hovnanian

$(7,684

)

$17,105

$(41,619

)

$(15,320

)

Less: undistributed earnings allocated to nonvested shares

-

(386

)

-

Numerator for basic earnings per share

(7,684

)

16,719

(41,619

)

(15,320

)

Plus: undistributed earnings allocated to nonvested shares

386

Less: undistributed earnings reallocated to nonvested shares

-

(386

)

-

Less: interest on senior exchangeable notes

-

879

-

Numerator for diluted earnings per share

(7,684

)

17,598

(41,619

)

(15,320

)

Denominator:

Denominator for basic earnings per share

147,010

146,365

146,846

146,223

Effect of dilutive securities:

Share based payments

-

756

-

Senior Exchangeable notes

-

15,157

-

Denominator for diluted earnings per share – weighted average shares outstanding

147,010

162,278

146,846

146,223

Basic earnings per share

$(0.05

)

$0.11

$(0.28

)

$(0.10

)

Diluted earnings per share

$(0.05

)

$0.11

$(0.28

)

$(0.10

)